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fthe World’s Daily Newspaper 

London, Tuesday, May 6, 1997 

No. 35,513 

W ■ 

They Fooled Most People Most of the Time 

Indonesia Gold Rush Apparently Was Set Off by a Hoax 

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OTTAWA — A small Canadian mining company's 
claim of making the richest gold strike on earth was a 
hoax “without precedent in the history of reining,'* an 
iodqpendeut cxxisultreg company Iras found. 

Bre-X Minerals Ltd., which turned many of its 
penny-stock investors in Canada and the United 
States into paper millionaires with its claim of a huge 
gpld find m the jungles of Borneo, tampered with 
laboratory samples to support its claim, the inde- 
pendent report said. 

Strathcoaa Mineral Services of Toronto released its 
findings on the site known as Busang to die Indonesian 

government Sunday. It was the latest turn in a (ale 
already has amassed mystery and intrigue, including 
die death of the geologist responsible for the discovery 
and a mysterious fire that destroyed his records. 

11 "Hie magnitude of the tampering with care samples 
that we believe has occurred and res ulting falsificatio n 
of assay values at Busang is of a scale and over a period 
of lime and with a precision that, to our knowledge, is 
without precedent mthe history of mining anywhere in 
the world,” Strathcoaa concluded 

The test results prompted Bre-X's partners in 
Indonesia and the United States to puH out of the 

Both FT Nusamba, the Indonesian company 
headed by Mohamad (Bob) Hasan, one of Indone- 
sia's richest men and President Suharto's confidant, 
and Freeport McMoRan Copper & Gold Inc. of New 

Orleans had said their participation was contingent 
on the independent test results. 

David Walsh, the former stock broker who is 
chairman of Bre-X, said he was devastated by the 
consultant's report 

“We share the shock and dismay of our share- 
holders and others that the gold we thought we had at 
Busang now appears not to be there.” he said, adding, 
“We are determined to gain a full understanding for 
the shareholders, for Bre-X's business partners and 
for others, of how the earlier data came to exist” 

Mir. Walsh's company already is under inves- 
tigation by Canadian securities authorities and the 
Indonesian government and is the target of a half- 
dozen shareholder civil lawsuits in Canada and the 
United States. 

Bre-X's announcement in October 1995 that it had 
found potentially the largest gold deposit on earth 
sent its stock soaring from 2.05 Canadian dollars 
(S1.4S) a share so more than 250 dollars by mid- 
1996, when the shares split 10-for-l. Bre-X said then 
that the Busang site contained up to 200 million 
ounces (5.6 milli on kilograms) of gold, worth bil- 
lions of dollars. 

Those who sold while die stock was still soaring 
became millionaires- Among them were Mr. Walsh, 
his wife, Jeanette, and the company's chief geologist, 
John Felderhof, who is now vice chairman. Se- 

See GOLD, Page 4 

Britain Signals 
New Era With EU 

Mn^nrUuni/Tbt AModaed Rea 

Bob Hasan as he withdrew Monday from the 
Busang gold mine project: “It is all business.” 

Hong Kong’s Next Ruler Draws Line on Dissent 


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By Keith B. Richbnrg 

Washington Post Service 

1 - HONG KONG — Tung Chee-hwa, who as chief 
^executive will run this territory after July 1, on 
^Monday defended his plans to place new restrictions 
.on political parties and on the right to stage demon- 
strations as necessary to prevent Hong Kong from 
sliding into the kind of social problems and breakdown 
of order that plagued die United States in the 1960s. 

Mr. Tung also laid out in greater detail than before 
his view of what types of public protests will be 
prohibited under his administration, warning that any 
rallies advocating independence for Tibet, Taiwan or 
Hong Kong would be proscribed. 

In an interview with American and .British jour- 
nalists, Mr. Tung said Hong Kong was still “a very 
• .peaceful society ' and “a very law-abiding society.’' 

But, he added, “the most important tiling is to make 
sure it stays that way.” 

“I Lived in America during the ’60s,” Mr. Tung 
said. ‘1 saw what happened with the slow erosion of 
authority, and the society became less orderly than is 

He said he certainly did not want to see this happen 
in Hong Kong. 

Asked whether he thought Hong Kong had already 
become too liberal in its laws, he relied, “I think if we 
are not careful, we are moving slowly in that di- 

. Mr, Tung insisted that he was concerned only about 
die welfare of Hong Kong's 6-5 million residents, and 
that it was his responsibility to keep the territory free 
from any internal instability or meaning by outsiders, 
be they foreign political parties using cash to ma- 
nipulate local politics, or intelligence agencies op- 

erating here, like die Central Intelligence Agency, 
Britain's MI-6 or Taiwanese spies. 

He said be was “going to take a look at what needs 
to be done” about foreign espionage in Hong Kong, 

after seeing reports in Chinese-Ianguage newspapers ‘ threat,” he said. 

Labour Vows 
To Embrace 
Social Laws 

Cw * tied btOwSs&Fnmi Dispatches 

BRUSSELS — In the first encounter 
with its European Union partners, Bri- 
tain's new Labour government vowed 
Monday to put into effect Europe-wide 
social laws thar its predecessor had 
scorned as a killer of British jobs. 

But Douglas Henderson, Britain's 
European affairs minister, also issued 
reservations about European integra- 
tion, staking out minimalist positions 
akin to those of the previous Conser- 
vative government 

He was the first British official to 
attend EU talks since Tony Blair's La- 
bour Party routed John Major's Con- 
servatives in Thursday's elections. 

Mr. Henderson said Mr. Blair wanted 
to shun Mr. Major’s strident tactics and 
bring negotiations to reform the Euro- 
pean Union to a conclusion by mid-June 
as planned. 

“One of the most important priorities 
we have identified is to make a fresh 
start to Britain’s relations with the rest 
of die EU and draw a line under the 
recent past,” he told his counterparts 
from the other 14 EU nations. 

“Europe, for the new British Gov- 
ernment. is an opportunity, not a 

about foreign intelligence agents operating here. 

He said that it would fall to his administration to 
ferret out foreign spies, and that China's ubiquitous 
Public Security Bureau would have no role to play in 
die territory after July 1. 

Mr. Tung said that he had no interest in trying to 
“stifle people from demonstrating,” and that public 
protests — which now occur on an almost daily basis 
on issues ranging from protection of illegal immi- 
grants to the curtailment of civil liberties — had now 
become “part of our culture.” But he also made clear 

See HONG KONG, Page 7 


Saudi in Canada 
Loses Key Ruling 

OTTAWA (AP) — Canada’s fed- 
eral court on Monday upheld the 
government’s attempt to depot a 
Saudi man suspected ofhaving a rote 
in the 1996 bombing that killed. 19 
US. servicemen in Saudi Arabia. 

Hie conn said the government 
had grounds to designate Hani Ab- 
del Rahim Sayegb as amember of a 
terrorist group. The next step will 
be an immigration hearing, where 
that designation , will serve as ev- 
. i deuce that Mr. Sayegh should not 
be permitted to stay in Canada. 

A Bitter Mexico Awaits the Giant 

Clinton’s Visit Will Seek to Close the Growing Number of Divides 

■ Rv A/faffo — pokes fun at various U.S. policies antagonistic toward the oft* 

andJoLwJfd^erson SLfi? “ 



The Doliar 

Momfay Q4F.M. 

The Dow 

and John Ward Afiderison 

Washington Post Service 

MEXICO CITY — The gringo-ac- 
cented American businessman who in- 
troduces himself to radio listeners here 
as Burton Helms epitomizes all that 
Mexicans abhor mfoeknOTthera neigb- 
bon dubious intentions, patronizing ar- 
rogance, sly interventionism. 

The advertisement — a blatantly na- 
tionalistic plea by Mexico's.fonnerfy 
state-run telephone monopoly for cus- 
tomers to shun foreign competitors in 
tine newly privatized telephone market 

— pokes fun at various U.S. policies 
considered distasteful to Mexicans, 
from the Helms-Bnrton trade sanctions 
against companies doing business with 
Cuba to the U.S. drug certification pro- 
cess for foreign countries. 

With its buffoonish gringo character, 
the ad illustrates the conflicting atti- 
tudes Mexicans and Americans have 
toward each other and the complex, 
often contradictory relationship that is 
evolving between the two countries. 

President Bill Clinton was to arrive 
here Monday night oh the first visit to 
Mexico of his presidency to, find a 
neighbor that seems ambivalent if not 

antagonistic toward the often overbear- 
ing giant to die north. Governmental 
relations generally are cordial — and 
relations between Mr. Clinton and Pres- 
ident Ernesto Zedillo seem warm — but 
feelings are cooler on the streets and in 
the legislatures. 

As the United States and Mexico be- 
come more culturally, economically 
and politically intertwined, they are 
more divided over immigration and 
drug trafficking, with resentment build- 
ing on both sides of the border. While 
their fortunes often seem nearly insep- 

See MEXICO, Page 7 







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Kg Tobacco Wins 

JACKSONVILLE, Florida (Reu- 
ters) — A jury found cm Monday 
thatRJ. Reynolds Tobacco Co. was 
not negligent in a wrongful death 
lawsuit. lne jury found mat Re-yo-^ •?.; 
okfe was not responsible for making 
an unreasonably dangerous and de- 
fective product. 


■j Rnmimian Press Control lunger* 

EUROPE Pag**- 

Tight Race Sha ping Vp in Ranee 

Books — ****">• 

Crossword Page*, 

He said Britain wanted to end its self- 
imposed exclusion from the Social Pro- 
tocol, an annex to the 1992 European 
Union treaty through which EU nations 
put into effect social legislation across 
the Union. 

Mb-. Henderson said Britain would 
accept more majority voting, give the 
European Parhament a bigger say in EU 
decision-making and back an “employ- 
ment chapter” in the EU treaty to force 
governments to do better in job cre- 

But he signaled no differences be- 
tween his government and Mr. Major's 
in other key areas, suggesting that a 
smooth end to the debate on revamping 
the EU was not near. 

Mr. Henderson outlined these reser- 
vations about the EU mirroring those of 
die Major government: 

• Britain will insist on running its 
own border controls and won’t agree to 
make die EU responsible for Europe- 
wide justice, asylum and immigration. 

• Britain will not give a blank check 
to the idea of letting some EU members 
integrate faster without others being 
able to stop them . 

• Foreign policy cannot become an 
EU policy but must remain inter-gov- 
ernmental Britain rejects gradually 
bringing the Western European Union, 
a European defense group, into the 

• The European Commission needs 
to be more “effective,” but Britain 
wants to retain the right to send at least 
two officials to the EU executive that 
now has 20 members. 

On the Social Protocol, which is also 
called the “social chapter,” Mr. Hen- 
derson said, ‘ 'We will be pursuing with 
vigor our signing up procedures.” 

To date, .only two social laws have 
been made Europe-wide: one guaran- 
teeing unpaid parental leave inter the 
birth of children, another setting up 
woricer-management councils in mul- 
tinational companies. 

(Reuters, AFP) 

7 fe 


Bound for Downing Street: Moving 
day at Mr. Blair's home Monday. 

Germans See 
Need to Find 
New Path but 
Resist Change 

By Alan Cowell 

New York. Times Service . 

BONN — Imagine a nation whose 
conservative leaders are well into their 
second decade of uninterrupted power 
and whose opponents cling to the past 
while the world moves on to die nee- 
market free-for-all and the global econ- 

Britain before “New Labour”? 

But nowhere else in Europe does that 
loose description seem quite so apposite 
as in Helmut Kohl's Germany. And 
nowhere else have Britain's elections 


last week evoked quite the same uneasy 
resonance as in Germany, where many 
people sense a need for similar change, 
but remain fearful of undertaking it 

The parallels, of course, are imper- 
fect. Chancellor Kohl has been in office 
for more than 14 years — Britain’s 
Conservatives were in power for 18 — 
without undertaking, or wishing for, 
anything like the harsh revolution of 
British Thatcherism. 

And bis principle adversaries, the op- 
position Social Democrats, have shown 
themselves equally reluctant to abandon 
the principles of what they call the social 
state, or to entrust their future to a 
younger, more forceful generation in the 
way Britain's Labour Party has done. 

See GERMANY, Page 7 

Rumor Mill Helps Disarm 
Opposition to Zaire Rebels 

Sports — 

Thebilw mar tet 

Pages 18-19- 

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pnArper AND OBSERVANCE— An Orthodox Jew distributing of sOence 

^HoSmistRemeinlwniice Day on Monday in Jerusalem. The anti-Zion& Orthodox protested the oamon. 

No Place to Hide From Ubiquitous TV 

By Paul Fartti 

Was hington Pot* Service 

WASHINGTON— At the New York 

Hflton Hotel, guests never have to go 
very ferto watch television. In addition 
to placing TV sets in the bathrooms of 

‘ every suite, fe c hotel recently put tel* 
-visions hi its elevators. 

“No one ever makes eye contactm an 

elevator,” said to™* a Hlton 
spokeswoman, *^ rt break* “P 
awkward situation- ’ 7 _ ^ 

Tn Washington, customers of three 
■first Union Bank brandies can wMcb 

televirion while waiting for a teller. 
Television sets in the lobby cany CNN 
or the bank’s own commercials. 

The television is coming to the dent- 
ist’s chair as well: The latest dental- 
distraction device is a high-tech tele- 
virion headset that lets patients time m 
while having their teetfi drilled. 

“It's wonderful,” saidFredStsepen, a 
Beverly Hills dentist who works on par 
dents as they watch “Die Hard” or 
“Braveheart” . 

It has long been true that televisions 
are more abundant in American homes 
than telephones or even hot running 

water (98 percent of all homes have a 
television set, compared with 94 percent 
with a phone and 91 percent with auto- 
matic water heaters). But nowadays if 
you can't come home to your television, 
the television will follow you. 

Television sets lie in wait at the air- 
port, where travelers can watch the 
CNN Airport Network; at the doctor's 
office, where the Better Health Network 
beams news and ads at patients in 1 A00 
waiting rooms, and at school, where 
Channel One, a network that mixes 

See TV, Page 7 

By Howard W. French 

New York Tunes Service 

KINSHASA Zaire — Walk the 
streets of this nervous capital, and you 
will quickly discover lira battle for Kin- 
shasa is well under way. Bullets and 
bombs are not yet flying, but rumors of 
the immine nt arrival of the rebel leader 
Laurent Kabila are, and they leave no 
one indifferent. 

After peace talks ended inconclus- 
ively late Sunday between Mr. Kabila 
and die cancerrstricken longtime pres- 
ident of Zaire, Mobutu Sese Seko, m the 
port city of Pointe-Noire in neighboring 
Congo, the rumor mill here seemed to 
spin out of controL 

International flights out of Zaire 
would be suspended beginning Wed- 
nesday, said a rich, panic-stricken Zairi- 
an afraid of being trapped hoe by the 
rebels. Western troops encamped across 
the river in the Congo would be here 
before Mr. Kabila’s fighters, another 
story had it. 

Worst of all, for those who felt they 
were guilty by association with the 
longest-standing African president, was 
fee apparently unfounded rumor, en- 
couraged by tracts floating about the 
city, feat .guerrilla units were already in 
place in Kinshasa. 

In a seven-month campaign for 
power, Mr. Kabila’s forces have swept 

clear across this huge country and are 
indeed preparing to grab fee capital, 
with its 5 million residents. But like 
every other battle in what may be re- 
membered as Africa’s most lopsided 
war, for the capture of Kinshasa fee 
rebel leader seems to have selected mu- 
vocative rhetoric as his weapon of first 

Speaking from his southern strong- 
hold of Lubmnbashi on Monday morn- 
ing. Mr. Kabila’s opening shots in the 
siege of Kinshasa came as a direct per- 
sonal threat to fee embattled president: 
“If Mobutu surrenders power now, I 
wifi guarantee his safety and that of his 
biological family. If not, we will have to 
chase him away in humiliation.” 

Mr. Kabila said feat his fighters were 
only 65 kilometers (40 miles) away 
from fee international airport at fee east- 
ern edge of Kinshasa and would carry 
out their threat against the president 
“within two or three days." 

[The U.S. special envoy in die Zaire 
crisis, Bill Richardson, said Monday 
feat he was pushing for a ‘ ‘soft landing” 
by fee rebels when they enter Kinshasa, 
Reuters reported from Lubmnbashi. 

[“The objective of my urgent mis- 
sion is to prepare a soft landing for Mr. 
Kabila’s rebels when they reach Kin^ 
shasa. a landing that avoids bloodshed 

See ZAIRE, Page 7 

international herald tribune, Tuesday; may 6 , 1997 


Clearing the Air in Romania / TV Station Shakos Froe 

Legacy of Controlling the Press Dies Hard in Bucharest 

B UCHAREST — On AncaToada’s first 
<ky back at her farmer television station, 
die received what in the old days would 
have been a routine though unwelcome 
teiepfemecalL The pariiameniaiy protocol officer 
Maided that the nightly news remind leg- 
hlraora ip «hownp for me next day's session. 

Mfan Toada, once a prominent news anchor 
who fa wefl known to Romanians, curtly refused. 

“I told him television wasn’t responsible for 
kee p in g the legislature’s day book,” said Miss 
Tow, who quit her job as anchor in disgust 
three years ago and has returned as the nati onal 
editor far wfaat she hopes will be anew era in 
fentdctstjotnialism here. 

Several months into remolding the news pro- 
grams on the «>vemmenr~financed television 
■ rati o n . Mbs Toada, 29, and her boss, Alina 
Mttnghi, 32, are counting the small victories. 
The mg ones ree coming hard. 

it few other countries in Eastern Europe was 
m w M oi so heavily manipulate d by the gov- 
e rnm e nt , and so much demised by viewers, as in 
Roanmm when it was ruled by die Communist 
dhumwhip of Nicolae Ceausescu. 

By Jane Perlez 

New York Tima Service 

Mr.Hiescu in power, or at the very least fzdtfa- 
fhlly reporting ins policies. Miss Mungiu said. 
The station’s correspondent covering the Balkan 
war, for example, invariably appeared on camera 
wearing a Serbian military uniform. The Iliescn 
government backed the Serbian leader, 
Slobodan Milosevic. 

But, Miss Mungiii mused, the communist 
training also taught people to be “very op- 
portunistic.” When she took charge at die star 
non, the anti-Milosevic demonstrations in Bel- 
grade had been in full swing for a week, but not 
a word ot picture had appeanxl on the news here. 
After Miss Mnngiu assigned the reporter to go 
back to Serbia and cover the protests, he did so, 
she said, using the same compliant behavior he’d 
learned in the past. 

Extremely low salaries presented another 
problem: an ingrained tradition of accepting 
girts to supplement poor pay. 

* "There was a big fuss when we said reporters 
could not accept presents worth more than 
10,000 lei” — about $1 25, Miss Toada said. 

F OR much of what they want to do — 
cany live broadcasts, raise salaries — 
the two editors are hamstrung by limi ted 
financing from die government, a legacy 
from the communist era that is difficult to change 
as Mr. Omstantinescu tries eo salvage the econ- 
omy, Miss Toada said. 

“A rich television is an independent tele- 
vision,” she said. “A poor television station can 
be exploited.” 

For TV Romania, 70 percent of the budget 
comes from the government and 30 percent 
comes from viewers’ license fees. 

Miss Mnngiu was able to attract a new face as 
anchor for the nightly news, a sprightly, 22-year- 
old computer programmer, AndreeaGbeorghita. 
But the studio where she delivers the news — die 
same place where die December 1989 battle 
went on — feels much like a dungeon. The walls 
are painted black, and the li ghting equipment is 
more than 20 years old. The result does not put 
Miss Gheorgmta in her best light on camera. 
Some money was actually found in the budget 
for new cameras. 

“They are the latest, and very fine quality, but 
they are designed for cold light and good 
makeup,” Miss Toada said. “We had hot lights 
and cheap makeup, which, when you put it on, 
tends to melL” 

Another small victory: the makeup was im- 
proved, helping Miss Gheorghita live np to bar 

Turgid (Metises and droning coverage of the. 
or Air. Ceausescu and his iron-fisted wife. 

door Mr. Ceausescu and his iron-fisted wife, 
Elena, provided much of the fere. Pseudo-cheer- 
firi flbK dances provided ersatz contrast. 

For some beady days during Mr. Ceausescu’s 
violet ov ert hrow in December 1989, it seemed 
tint TV Romania, as the station is known, might 
become a model of freedom of speech. The news 
radio broadcast the revolution live. But after a 
s treet batt le that spilled into the lobby of fee 
station, fee forces of another Communist, Ion 
Meacu, took over fee government — and the 

For seven years, Mr. lliescu’s television was 
not nmch di ff er ent from Mr. Ceausescu’s. So, 
taperiraps nowhere else in Eastern Europe had 
government television changed so little alter fee 
Ml of communism. 

One of the first pledges of fee new president, 
Emil Gonstantinescu, a staunch anti-communist 
whodefcmed Mr. IHescu last November, was to 
give TV Romania a free hand. 

Bnt Mbs Toada and Miss Mnngiu are finding 
that old habits persist. The parliamentary com- 
mittee in charge of the communications media 
demanded that all news confe re nces of political 
parties be broadcast, no matter how much pro- 
pagranfrring there is. 

Andreea Gheorghita, the anchor, left, and Anca Toada, national 
news editor, preparing for a broadcast ‘A rich television is an 
independent television. A poor television station can be exploited .* 

When Miss Mungiu moved into her comer 
office soon after Mr. Constantinescu’s victory, 
she discovered a telephone, decorated wife a 
decal of the national emblem. A holdover from 
communism, it served as a hot line from fee 
presidency and Parliament, an easy way for 
politicians to badger editors while the news was 
still on air. In April, in another small victory, the 
line was finally cut 

Miss Toada, who started as an idealistic young 
reporter after Mr. Ceausescu’s ouster, rose to be 
the star news reader cm TV Romania. She abruptly 
quit in 1994 when she became so embarrassed by 
fee government propaganda that passed as news 
that she said she was “ashamed to go out.” 

“On one occasion, 1 had to read seven pages 
from the Foreign Ministry on why they were 
upset wife the Hungarians,” she said. 

Miss Toada went to France for a while and 
came back to Romania to work at a small com- 

mercial c hannel. When Miss Mungiu, a prom- 
inent anti-Hiescu journalist who recently com- 
pleted a year’s study at Harvard University’s 
government department, was appointed news 
chief. Miss Toada decided to return to TV Ro- 
mania with expanded editorial responsibilities, 
although she still sometimes appears as anchor. 

“I returned because public television has to 
regain its audibility ana prestige,” she said, as 
she looked over the story list far the next news- 
cast (It included coverage of King Michael, who 
had been barred from entering the country by the 
previous government) 

For the most part. Miss Mungiu and Miss 
Toada said, many of the r eporters and editors at 
the station were holdovers from the Ceausescu 
era, trained to be subservient to the government 
and. in the cases of some, to report to the 
domestic intelligence services. 

Many viewed their calling in life as keeping 

iAItitude Error Caused Collision Over India That Killed 349 

u* By John F. Bums 

Hew fori Tana Service 

?lv NEW DELHI — Investigators ex- 
‘'.arinrag the world’s deadliest midair 
have established feat the crash 
n -Mr hire int November occunedaftera 
^%raintai Airlines Hvushm-76 de- 
h ^»eaded needy 1,000 lWbeiow fee 
‘'iSjOHMect anode assigned to it by 
:1Man air traffic contraUen, putting it in 
' 'fee path of a Boeing 747 of Saudi Ara- 
^ ’Man Alrimes that had taken off minutes 
jeaificr from New Delhi. When the planes 
1 c d Me d , 349 people were killed. 

Do cu ments submitted to a judicial 
-'Inquiry in New Delhi in recent days 
'’ have uunflnned the principal cause of 
'’fee crash — the Kazak pilot’s action in 

“busting” the altitude set for his des- 
cending aircraft by air traffic controllers 
at Indira Gandhi International Airport 

According to those documents, which 
reflect investigations at aviation re- 
search centers m Britain and Russia, the 
Kazak plane was at a height of 14,190 
feet 26 seconds before the collision, just 
above the 14,000 foot altitude the con- 
trollers set for die Saudi plane. 

The Saudi airline has told the inquiry 
that the Kazak plane was responsible for 
the collision. But fee Kazak airline has 
said that “severe air turbulence” en- 
countered by the Ilyushin 30 seconds 
before impact caused the plane to drop 
below its assigned altitude. 

The Saudi airline has rejected that, 
noting that the Russian flight crew of fee 

Ilyushin made no mention of turbulence 
or a sudden drop in altitude on the 
aircraft's cockpit tape. 

Both airlines have also said that fail- 
ings of the Indian air traffic controllers 
played a major part in 'the' crash, in- 
cluding the fact feat the Saudi plane’s 
crew was never told that the Kazak 
aircraft was approaching it from die 
opposite end of fee same narrow air 

By reserving most airspace around 
the Indian capital, fee Indian air force 
has forced civilian flights approaching 
fee New Delhi airport to arrive and 
depart along a narrow funnel of air- 
space, separated by 1,000-foot vertical 

The cockpit tapes showed that the 

radio operator of the Ilyushin, Egor 
Repp, was told by die New Delhi tower 
38 seconds before the impact that die 
Saudi aircraft was eight miles away, 
approaching the Ilyushin at 14.000 feet. 

At the time, however, according to 
the Ilyushin’s flight data recorder, it was 
flying less than 500 feet higher, 500 feet 
below its" assigned altitude, and des- 
cending. The tapes showed feat the 
Saudi plot, unaware of the approaching 
Ilyushin, glimpsed the Kazak airliner 
only moments before impact, too late to 
move out of die way. 

All 37 people aboard the Ilyushin, 
mostly Russians from Kirgizia on a 

aboard the Boeing, mostly Indians en 
route to jobs in Saudi Arabia, died when 

die two aircraft hit die ground in an arid 
fanning area west of New Delhi. 

Another focus of die inquiry has been 
the antiquated air traffic control system 
in India. At many airports, including 
New Delhi’s, controllers rely on radars 
that tell them the distance of aircraft 
from die airport, but not fee height or 
direction. New American-made radar 
systems were to have been installed at 
New Delhi, Bombay and Calcutta by 
1995, but have been delayed. As a re- 
sult, controllers rely on pilots to report 
their altitudes. 

Transcripts of tapes in the November 
crash have shown that the Ilyushin crew 
never confirmed to die controller feat 
fee aircraft had received or obeyed fee 
instruction to remain at 15,000 feet 


For 2 French Airlines, 
The Going Gets Belter 

Sixty-five flights were delayed by fee 
walkout, which ended at 4 P.M. 

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18-19 . 

.jtffiu Xon^ 'Piis major inter- . . 
,^^ationaI energy foruin will be ; . 
^^pddressed by oil ministers; from the 
IlSvorld's largest producing nations, as welLas 

sy ■ ■ 


|fSenior oil industry executives. For further detai&s, 


H please contact Brenda Erdmann Hagerty in 

PARIS ( AP) — Air Liberte and TAT 
increased flights Monday but were still 
hobbled by work stoppages. Air France 
Europe said it was carrying out 90 per- 
cent of its flights despite a strike by three 
of its four pilots' unions that is to con- 
tinue through Tuesday. 

At TAT and Air Liberte, which Brit- 
ish Airways owns and is trying to merge, 
about 30 percent of flights were groun- 
ded by a strike by flight attendants. That 
was op from half service last week. 

Lufthansa Challenged 

FRANKFURT (AP) — Lufthansa's 
monopoly on a key domestic route 
ended Monday as Eurowings, a small 
German competitor, began cheaper 
flights between Frankfurt and Berlin. 

’s round-trip economy fere 
$453). Eurowings offers a 

is 780 DM ($453). Eurowings offers a 
478 DM round-trip fere on flights 
booked a day in advance. 

89 Milan Flights Cut 


MILAN (AFP) — A four-hour air- 
traffic controllers’ strike Monday forced 
fee cancellation of 89 flights at Milan’s 
international airport, officials said. 

A headline in Monday’s edition in- 
correctly identified Peter Mancie Ison as 
a member of the British cabinet. He is a 
minister without portfolio but does not 
hold cabinet rank. 





* % 
Sortie W 

Israeli Broadcast Helps 
Survivors Find Parents 

V.V : " 

The Associated Press 

JERUSALEM — The young feces of 
Jewish children separated from their 
familie s timing fee Holocaust stare from 
faded black-and-white photographs, 
their true identities unknown. 

One is Pnina Gutman, 55, an Israeli 
nurse who was smuggled out of the 
Warsaw ghetto as an mfant in 1943 by a 
sympathetic German soldier. Decades 
later, she still does not know who her 
parents were. 

“It is an enormous thing to know who 
you are,” said Miss Gutman. Israel 
Television is helping her and 17 other 
survivors search for their pasts by 
broadcasting their photographs and 
scraps of information about them. 

The first broadcast — shown in Israel^ 
and Poland two weeks ago — led to a '■ 
reunion between an - Israeli -woman, 
Varda Sapolnikov, and the family she 
had not seen in 54 years. A second was 
broadcast in Israel on Sunday night as 
the nation began its annual remem- 
brance of the 6 milli on Jews killed by 
the Nazis. 

A telephone conversation between 
Miss Sapolnikov and her mother, now 
living in Denmark, was parr of the pro- 
gram Sunday. 

“I looked for you many years,” the 
elderly woman said. “Your father has 
died. Call me mother.” 

“I can’t,” sobbed fee daughter, now 
in her 50s. “The words won’t come 

The program has turned up atangle of 
family histories for some of those in- 
volved, a maze of fake names and pro- 
tective families. 

Hanita Leshem, 57, a retired teacher 
in Jerusalem, remembered little of her 
childhood before she was sent as an 
orphan to Israel After the program, an 
elderly Polish man telephoned to say he 
recognized her as fee girl who was 
briefly raised by his landlords in Lvov 
— today part of Ukraine. 

He told her she was taken to a Jewish 
orphanage when the Polish gentile fam- 
ily watching her was forced to flee fee 

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ily watching her was forced to flee fee 
Russian invasion of Lvov. 

She has since discovered that her real 
last name may be Bauman. 

Now, she said, “I hope to at least find 
my birth certificate or a relative here or 

Miss Gutman began her own search 
last year, traveling to Europe knowing 
" only the Polish orphanage where she 
was found and the name she had at the 
time, Barbara Kaczmerek. Her, search 
led her to a man named Wolfgang Reb- 

He told her it was his mother — a 
gentile married to a Jewish man — who 
agreed to take her from ho- parents, 
trapped in the Warsaw ghetto. 

The Rebhuns, he said, were caught 
harboring Jews and sent to labor camps. 
Miss Gunnan was found a few day slater 
on an empty train and the Red Cross 
turned her over to fee Kaczmereks. 

After the war, Jewish authorities ob- 
jected to the Kaczmereks ’ effort to adopt 
her. She was adopted by a Jewish family 
— the only parents she remembers. 
They immigrated to Israel in 1950. 

The mystery about her past, Miss 
Gutman said, was “something I 
couldn't face until my adoptive parents 
died” in recent years. 

* ‘It would have hurt them too much, ” ft 
she added. ^ 

She has yet to find the identity of her 
parents, but has come tantalizingly 

Mr. Rebhun said feat she was named 
Weglinslti when she reached them, but 
that he believed this was a fake name. 

He also said he once saw her parents, but 
remembered only a tali, good-looking 

He also said he did not believe they 
survived the war. 

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Arts and Antiques 

every Saturday 


*' 1 ' * 


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% London on TcL (44 171 ) 420 0307 " 

E-mail: bhagert 


\ Fax: (44 171) 8360717 



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and DetraU Thursday, TNs 
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prevail across London. 
Paris and Amsterdam 

Paris and Amsterdam 
through Friday. Showers 
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Thursday and Friday. 
Soidtoasi Europe wffl at ay 
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storms wS rumble through 
Bering and Seoul Wednes- 


day with showers Bngering 
Into Thursday In Seoul. 
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in Hong Kong and Singai 
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U.S. Diplomacy Tries 
Some ‘Other’ Issues 


iiors]S\i In Guatemala, Albright Sets a New Tone 


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By Thomas W. Lippman 

Washing ton Post Service 

TULULCHE. Guatemala — The U.S. 
secretory of state, Madeleine Albright. 

; has given a personal demonstration of 
-« how the focus of American diplomacy 
. has shifted in the post-Cold War era. 
First she flew Sunday by helicopter to 
ibis cluster of plywood huts in remote 
1 northwestern Guatemala to meet former 

- leftist guerrillas who had taken pan hi a 

- 36-year civil war. The rebels have 
„ turned in their weapons since peace 

- came in December and are training for 
life as civilians. 

Then she returned to Guatemala City 

- to initial a bilateral treaty aimed at curb- 
-.1 ing a menace that hits Americans more 
, directly than the threat of communism 
»■ in Central America ever did: car theft. 

Throughout Central America and in 
-4 Mexico, “stolen cars are a major is- 
■ - sue," a senior U.S. official traveling 
. with Mrs. Albright said. “They come in 
' here in container ships. It’s a big busi- 
■» oess, and we’re working with insurance 
.. companies and Central American gov- 
ernments to get them to work with us to 

- return stolen cars.” 

Auto theft may seem like a mundane 

- issue for a secretary of state to address 

* during an international trip, but her pro- 
'■ . g tam was consistent with the emphasis 

on non traditional diplomacy thin has 
„ come to characterize President Bill 
Clinton's administration as the global 
confrontation with communism fades 

• into history. 

~ Perhaps even more than her prede- 
cessorTwarren Christopher, Mrs. Al- 
7 bright is focusing on die so-called 

- transnational issues — crime, drug traf- 

- ricking, overpopulation, degradation of 
the environment — as growing ducats 

- to the well-being of Americans. 

By itself, the treaty initialed Sunday 
' may do little to stem the flow of stolen 
n automobiles from the United States to 

- Mexico and Central America, officials 
' acknowledged. 

I * But it does commit the two countries 
to a joint effort to address the problem, 
*• which officials said was sensitive here 

- becanse ordinary citizens often are vio 
; timized by car-theft rings — such as 

when they hand over their savings to 


Clinton Confidants 

Kruno About Jlubbell 

' :r WV&HINGTON .The 
House has' maintained that President 
and Mrs. Clinton did not know dial 

Webster HubbeD faced possible crim- 
inal charges when their close asso- 
ciates started organizing a string_of 
business contacts to help support mm 
in the spring of 1994. 

But according to documents and 
interviews, two of the president’s 
closest confidants understood the se- 
riousness of Mr. HubbeU’s troubles 
even before he resigned as associate 

attorney general in March 1994. 

One of the confidants, James Blair, 
an Arkansas lawyer, went to the Om- 
tons to warn them that Mr. Hnbbeil 

SI Die, — : - S_ 

viously unpublished testimony before 
Senate Whitewater investigators. 

. Mr. Blair had been told m early 
March by die law firm Mr. Hubbell 
had worked for that it had ‘‘pretty 
strong proof of wrongdoing by Mr. 

Hubbell, a lawyer said. 

In addition; David Kendall, the 
Clintons' personal lawyer reemved 
similar information about Mr. huo- 
beU in March 1994. (NYT) 

More States Weigh 
‘Partial-Birth’ Ban 

WASHINGTON — While Con- 
gress tries agmn tobanwhat abomon 
opponents call “paroal-bnth rfwr- 
tionT” several stales have outlawed the 
procedure on their own, and numerous 
others are considering doing so. _ 
Last year. Congress passed a tan 
on the procedures, but Prtwtajt BUI 
Clinton vetoed it because it did not 
an exception to protect awMn- 

^iSwwd effort to enact die bai 

the House passed it again this year by 
a veto-proof majority. The Senate is 
: to vote on: it the week of May 32: 
Advocates of the ban say they have, 
only 61 votes in the-Senate — 6 short 

of the necessary two-thirds needed to 

override another expected veto. 

Discouraged by the national out- 
look, 40 sraies have token up the 
issue. (NTT) 

Medicare Cuts Fall 
Lightly on the Old 

WASHINGTON — The budget 
deal announced by Presiden t Bill 
Clinton and the Republican leader- 
ship squeezed its largest block of sav- 
ings out of the Medicare program, but 

did it in a way that should cause 
pniniinal pain for most of the 37 mil- 
lion seniors who depend on the fed- 
eral health care program. 

The agreement reduces by $11 J 
billion the cost of the program over 
the next five years. Most of that would 
come by limiting federal payments to 
hospitals and doctors, not by signif- 
icantly raising premiums or elimin- 
ating services to seniors. (WP) 

Quote /Unquote 

Anthony Quainion, the Stale De- 
partment’s personnel chief, in a 
memo to ambassadors and senior of- 
ficials abroad on “caste conscious- 
ness" and of how "elements of our 
career services sought to promote 

themselves at the expense of others : 

“I continue to be dismayed about our 
culture of disdain in which everyone 
seems to be seeking an excuse for 
looking down on someone else. In a 
recent trip to Asia, I found additional 
causes for concern at the extent to 
which family members, civil service 



„ .. »*£ 3 

pay for an automobile that turns out to 
belong to someone else. 

At a news conference with Foreign 
Minister Eduardo Stein, Mrs. Albright 
said such agreements were part of the 
effort to establish “the role of law” in 
Latin America. 

She called cross-border car theft “a 
problem of quite large proportions for 
us” and said the accord showed “the 
kind of cooperation where nothing is too 
small and nothing is too big to talk about 
with our friends.” 

At the demobilization camp, Mrs. Al- 
bright was surrounded by scores of chil- 
dren as she toured one of eight centers set 
up by the United States and the United 
Nations after the war to help 3.000 guer- 
rillas emerge from the bush and enter the 
mainstream of Guatemalan life. 

All but about 500 of those former 
guerrillas have completed their training 
and moved on, mostly to farms in their 
native provinces. This camp bouses the 

“This is really the end of the Cold 
War,” a senior official with Mrs. Al- 
bright said. “These are the last war- 

One of her guides was Baltazar Za- 
peta, formerly Coraandante Heman, 
who said he joined the rebel front in 
1980 and at one time had 300 men under 
his command. 

“Now there is no need to fight with 
guns,” he said, because “we have the 
social base to form a political move- 
ment” that might have a chance of 
breaking into Guatemala’s city-domi- 
nated power structure. 

In ternaries to the villagers, Mrs. Al- 
bright hailed die peace agreement as an 
opportunity for them to surmount the 
poverty that has saddled diem with 
some of the Western Hemisphere's 
highest rates of illiteracy and infant 

“As I look at all the young children 
here, yon need to know that the peace is 
for you,' ’ Mrs. Albright said. “Some of 
you may wonder why in heaven’s name 
the secretory of state is here. Why would 
she and the United States care about 
what is happening here? The reason is, 

we are all one family, and when one part 

Of pin- family is not happy or suffers, we 
ail suffer.” 

Game 2: Computer Beats Kasparov 

Deep Blue, Playing ‘Beautifully,’ Ensnares World Champion 

Adm Nadd/flM AoocncniPKn 

Garry Kasparov contemplating a 
move against Deep Blue in Game 2. 

Nnr York Times Service 

NEW YORK — The IBM com- 
puter Deep Blue has drawn even in its 
match against Garry Kasparov, the 
world’s best human chess player, 
winning the second of their six 

As is his wont after a loss, Mr. 
Kasparov did not speak to reporters 
— but an ebullient Deep Blue team 

“It feels unbelievably great,’ said 

Murray Campbell, an IBM researcher 
who has been working on Deep Blue 
since 1989. 

Mr. Campbell said that even 
though Deep Blue defeated Mr. 
Kasparov in the first game of their 
first match a year ago, there were 
indications that neither the com- 
puter nor Mr. Kasparov had played 
very well. 

“This time it earned the win," Mr. 
Campbell said. “It played beauti- 

Deep Blue had the advantage 
Sunday of playing the white pieces 
and moving first. The game de- 
veloped slowly, with Mr. Kasparov 
playing cautiously, as he had said he 
would in the opening games, waiting 
for the computer to reveal its weak- 

The problem for Mr. Kasparov was 
that Deep Blue showed no weak- 
nesses. It held the white advantage 
throughout, playing a patient opening 
known as die Ruy Lopez, and in the 
endgame pressured Mr. Kasparov’s 
king with rook and queen threats, 
never letting him breathe. 

The next match, with Mr. Kasparov 
again playing white, will be Tues- 

Game 2 * 
Ruy Lopez 

all seem to be 
ers’ profession 

each oth- 



People Also Need to Kbow 

When the Molester Leaves 

.‘•Neighbors in Manhattan, Kansas, 
were friendly enough to MDce and 
Jody Lumpkins and their daughters, 
until state officials made a bit of a 
mistake — identifying their trailer as 
the home of a convicted sex offender. 

Then rocks were thrown and insults 
muttered. "Kids walking by would 
say to me, ‘My parents told me not to 
talk to you because you’re a sexual 
offender,’ ” Mike Lumpkins said. 

A 1 994 federal law requires states to 
keep registries of convicted sexual 
predators and child molesters; later, 
states were required to tell a com- 
munity “whenever a dangerous sexual 
predator enters its midst” The rape- 
lrilling of Megan Kanka, 7, in New 
Jersey was a prime force behind 
thelaw. But there have been problems, 
as with the Lumpkins’ experience. 

The Kansas Bureau of Investigation 
says the Lumpkins’ trailer had been 
home to a convicted offender, Dennis 
Cox, but he had moved without no- 

Texas Police Dog Shot 

In Hunt for Separatists 

The Associated Press 

FORT DAVIS, Texas — State au- 
thorities hunting two separatists who 
fled into the Davis Mountains after a 
weeklong standoff unleashed tracking 
dogs after finding a campsite, b ut o ne of 
the five hounds was hit by gunfire. 

Officials said they were close to cap- 
turing the separatists, Richard Keyes 
3d and Mike Matson, who were be- 
lieved to be armed. They fled after 
other members of the separatist group 
surrendered Saturday. Their group, the 
Republic of Texas believes the state 
was illegally annexed by the United 
States in 1848. 

tifying anyone. The bureau has re- 
moved the Lumpkins’ address from its 
on-line registry, having confirmed that 

Mr. Cox was no longer there. He is now 

serving a prison sentence in Nebraska. 

Despite their experience, the Lump- 
kins think the registry is a good idea. 

$hort Takes . ; 7 

The baby wakes up scre amin g 
after midnight with' a fever of 102. 
'You call the pediatrician. Should she be 
entitled to a fee for telling you whether 
to take the child to the hospital or 
simply give him a pain-and-fever re- 
Hever? A survey of 479 doctors in the 
Albany, New York, area found that 70 
percent favored such biffing, especially 
for after-hours phone calls. But only 1 
percent actually did bill for such calls. 
Oddly, reports The New York Tunes, 
the doctors who got the most calls were 
among die least likely to say tbey de- 
served to be paid for them. Pediatricians 
reported getting an average of 35 calls 
on the weekends and 14 after hours on 
weekdays. Yet just 56 percent said they 
thought they should charge for them. 

U.S. wine exports jumped as per- 
cent last year, to $327 million, with 
California accounting for 90 percent 
of the total. The top markets were 
Britain, Canada, Japan and Germany. 
Exports to Europe were up 56 percent. 

The numbers would have been higher 
if some wineries had not faced short- 
ages of grapes. 

Manhattan is getting a new theme 
restaurant that could appeal to those 
who hate to spend more than a few 
minutes away from a TV screen. Tele-, 
vision- City., opening m Rockefeller 
Center, will have 130 television, sets 
and $1 million in production equip- 
ment Diners can get in front of a 
camera in a small broadcast studio, 
where they can deliver news, read the 
weather or run their own talk show, 
then buy a tape of their performance. 

The first Hollywood cartoon 
character to be honored on a post- 
age stamp will be Bugs Bunny, not his 
older and even more famous col- 
league, Mickey Mouse. The postal ser- 
vice says the Walt Disney Co. wanted 
Mickey (and Donald Duck and others) 
on stamps, but balked at having to 
forgo royalties. Not so Warner Bros., 
which owns the rights to Bugs, that 
inimitab le carrot-cruncher. 

The Postal Service is almost giddy 
in anticipation of the release of the 
Bugs stamp, according to The Wash- 
ington Post Postal authorities anti- 
cipate $38 million in profits, surpass- 
ing by $2 milliontiie record held by the 

Elvis Presley stamp issued in 1993. 

International Herald Tribune 



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Away From 

• The Michigan State MetUojJSo i- 
ety, the largest doctors group in Dr>Ja ;k 

Kevorkian’s home state, has dropped is 

four-year-old neutral position iQn pi y- 
sician-assisted suicide, declaring it 
“fundamentally incompatible .with t le 
physician's role as healer.”.: But t ie 
group maintained its opposition to o t- 
lawing the activity, saying any. such h w 
could discourage doctors from .gjvi g 
terminally ill people adequate . t« n 
medicine. M *!) 

• Flames engulfed a van as it dro re 

down a suburban Los Angeles stre 
killing three children and severely bui i- 
ing their mother. It was not imroediati ly 
known what had caused the fire, whi :b 
the mother said followed a poppi ig 
sound from the dashboard area of l ie 
Ford Astrovan. ‘ (A 9 ) 

• Boulder, Colorado, returned to 

calm after two straight nights of ipplt at 
clashes between the police and cplk ;e 
students who were demanding a right to 
drink alcohol and party. Businesses jin 
“The Hill” district near the University 
of Colorado campus complied with a 
police request to close early, and a con- 
cert at a popular nightclub was-pan- 
celed. •’ (AP) 

• The lawyer for a drill sergeant 
charged with raping a trairiee said that 
army commanders had singled, die de- 
fendant out for prosecution because he is 

_black. The, rnW jMEf a 

. having had conse^il,^ withmtu*es 
- because- the-tradnoes, -Spur, whites jjpd 
one Hispanic, were not chjigedi wth 
violating the array tan; cm swdyrofa- 
tionships. The sergeant .is ooe of ji2 
black staff members at Aberde^a Pav- 
ing Ground in Maryla nd ch arged}, wjjth 

criminal sexual misconduct. . ■ - \i&P ) 

. .■ i 

• The newest UJS. weather sat^ffite 
was lifted to its otmratingoibitovei:flie 
weekend and is being nudged into . po- 
sition as a backup for the Atlantic hur- 
ricane season. The $220 million GOES- 

K satellite was launched April 25 from 
Cape Canaveral, Florida. Its designa- 
tion changes to GOES- 10 because it lias 
readied a 22300-mile (35,700-kilome- 
ter) high orbit where its speed matches 
that of the Earth below, effectively caus- 
ing it to hover over one spot (AP) 

• Three soldiers and a National 
Guardsman were killed when a civilian 
sport-utility vehicle and a military 
Humvee collided on a road at Fort Hood 
in Texas. (AP) 


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Defector’s Survival Guilt 

‘My Heart Turned to Stone,’ Escapee Says 
Of Suffering of Relatives in North Korea 

By Velisarios Kattoulas 

International Herald Tribune 

SEOUL — When Lim Yang Son, an 
officer in the North Korean Army, ac- 
cidentally intercepted a warrant for his 
own arrest for treason in 1993, he faced a 
choice: arrest, torture and execution in 
Pyongyang, or defection to Soufe 

He hesitated, fearing that fleeing 
North Korea could condemn his im- 
mediate family to imprisonment in a 
concentration camp. 

“My heart has turned to stone,” said 
Mr. tin, who later learned through 
South Korean intelligence officials that 
his father, mother, two brothers and two 
sisters had been thrown into a concen- 
tration camp because of his defection. 

To discourage defections dissent, 
experts say. North Korea routinely im- 
prisons the immediate family of defect- 
ors. As a result, many of the approx- 
imately 600 defectors living in South 
Korea are tormented by guilt, loneliness 
and doubts about whether the North, 
apparently on the brink of a major fam- 
ine, is feeding their imprisoned rela- 

“My family will be the last ones to be 
fed and will eat the least,” Mr. Lim said 
at a church in a Seoul suburb. “But what 
can I do about that? I can regard this only 
as fate." 

In its first such admission, Pyongyang 
said in April that at least 134 children 
died of malnutrition in 1996. 

Anecdotal evidence from along 
China’s border with the reclusive North 
suggests that thousands may already 
have died of starvation this year. The UN 
World Food Program has warned that up 
to 100,000 North Koreans could die 
from starvation in the next three 

Park Shin Ho, head of the nongov- 
ernmental Supporting Council for North 
Koreans, said many of the mainly male 
defectors from the North suffered bouts 
of despair that drove them to alcoholism 
and to seek comfort from prostitutes. 

“Once they get to South Korea, de- 
fectors have enough rice to eat but they 
get satisfaction from no other aspect of 
their lives,” Mr. Park said. “The 
problem defectors face is die guilt 
feel over die family they left behind in 
the North.” 

Chun Won Taek and Min Sung Gil, 
professors at Yonsei Medical School in- 
Seoul, said 19 of 21 defectors they had 
interviewed extensively suffered from 
chronic loneliness. Most commonly, die 
researchers wrote in “The Life of Do- ' 
fectors,” published this year, defectors 
struggled to marry and to form ties with 

relatives here, with other South Koreans 
and even with other defectors. 

Although separation from their fam- 
ilies hurt defectors the most, part of the 
reason for their loneliness was that they 
thought many South Koreans considered 
than parasites. 

South Korea pays each defector 20 
million won ($22,400) to help in re- 
settlement and up to 220 milli on won 
more for military and other secrets about 
the North, according to a government 
official who asked that he not be iden- 
tified. But activists say many of the 
defectors had received just 12 million 

Either way, many South Koreans in- 
sist that the payments, as well as a center 
under construction to handle 500 de- 
fectors a year, are a waste of taxpayer 
money. One in three South Koreans says 
the government pays defectors too 
much, a 1 995 government survey found, 
while just one in 10 says it pays too 

One prominent South Korean econ- 
omist, who was bom in the North, dis- 
missed defectors as “a mixture of ar- 
istocrats and thieves.” 

The government official said Seoul 
was building the reception center be- 
cause the number of defectors was rising 
and could surge if the government of 
Kim Jong 11 collapsed. While just 89 
North Koreans defected between 1970 
and 1989, at least 170people have fled to 
die South since the death in 1994 of Kim 

Vduario* KiflpuWlrtrmalWnal Ho»M Tnbyna 

Lim YongSun preaching against Pyongyang in a church near Seoul: “My family will be the last ones to be fed.” 

H Sung, the longtime North Korean lead- 

Until 1994, defectors were largely 
disillusioned North Korean spies in the 
South. Since then. North Koreans rang- 
ing from top military and government 
officials to lumbeijacks and fishermen 
have fled to the South. They fled across 
the heavily fortified border between the 
two Koreas, by boat or via China to 
escape the worsening poverty and food 
shortages that have plagued the Stalinist 
North since the collapse in 1991 of its 
main ally, the Soviet Union. 

Mr. Lim was a senior officer working 
as an aide to a top Defense Ministry 
official when he intercepted bis own 
arrest warrant, which was addressed to 
his boss. 

In the course of his work, Mr. Lim 
said, he had leaned of a plan to reunify 
the two Koreas by firing nuclear missiles 
at South Korea and obliterating it in 

The secret plan was portrayed as a 
‘ ‘gift” to the Korean people freon Kim D 
Sung, be said. But Mr. Lim strongly 
opposed the plan and wife 17 other like- 
minded army officers plotted to expose 
the plan internationally, which is an act 
of treason in North Korea. 

Mr. Lim hid the warrant and two days 
later bolted for the Chinese border, about 
250 kilometers (160 miles) north of 

Word of his escape quickly reached 
North Korean authorities. Mr. Lim later 
learned from South Korean intelligence 

officials rhar North Korean police had 
rounded up the 17 other officers in- 
volved in the plot, executed them and put 
their families, as well as his own, into 
concentration camps. 

When he eventually crossed the Yalu 
River separating North Korea from 
northeastern China, .South Korean 
agents in contact with spies in Pyong- 
yang were waiting to take him to 

When I got to China the first thing I 
noticed was how free it was and that 
there was so much to eat,” said Mr. Lim, 
33, who weighed 57 kilos (125 pounds) 
when he defected but now weighs 75 

“When I got to South Korea, I 
thought I was m Japan.” 


Indonesia Party Ignores 
Police Ban and Marches 

“If they continue to commit violations, then we 
with great regret will have to take firm action,” 
Jakarta's military commander. Major General Sutiy- 
050, was quoted as saying by fee privately run news- 
paper Media Indonesia. (Reuters) 

YOGYAKARTA, Indonesia — Supporters of a 

minority Indonesian party held processions in two n ii n j n n i 

major cities Monday, ignoring warnings by the mil- flflWV lSaCKS ifUfflUl ixUleTS 
itary that street parades were banned during the ^ 

general election campaign. 

The supporters of the Muslim-oriented United 
Development Party paraded in the capital, Jakarta, 
and in the ancient city of Yogyakarta. They were 
watched by the police, but no attempt was made to 

military ultimatum came as the party, whose 
party faithful have frequently violated fee ruling 
against street parades, resumed campaigning across 
Java on Monday for fee May 29 election. 

Each of fee three parties permitted to contest fee 
election — fee United Development Party, the ruling 
Golkar and fee Indonesian Democratic Party — are 
allotted separate parts of the country in which to 
campaign each day. 

BANGKOK — More than 35,000 people rallied in 
Burma, accusing the United States of bullying their 
country wife economic sanctions and vowing to crush 
the democracy leader. Daw Aung San Suu Kyi, 
Burma’s state-run newspapers said Monday. 

The rally, held Sunday in Mandalay, Burma’s 
second-largest city, was held by fee Union Solidarity 
and Development Association, a group controlled by 
Burma's military government (AP) 

China ’s Dwindling Marxists 

BEU1NG — Surveys of China's workers have found 
a sharp frill in fee number who believe in fee Com- 
munist Party and trust in fee future of communism. 

while mare and more are turnin g to religion. 

“A considerable number of party members in their 
own hearts do not really recognize themselves as 
party members.” said the magazine Modem Ideo- 
logical Treads in its latest edition available on 

“If this continues, the prospects will be dreadful to 
contemplate,” fee hard-line leftist magazine 
warned. (Reuters) 

Macau Police Seek Killers 

MACAU — Heavily armed policemen fanned out 
across Portuguese-run Macau on Monday in search of 
drive-by hitmen who gunned down three men in the 
latest wave of gangland warfare. 

A senior police officer said the victims were 
“pretty well-known triads” — or members of 
Chinese criminal fraternities. 

He said the three, who were traveling in one car, 
were prominent members of the 14K triad and were 
believed to be associates of the triad's local ‘ ‘ dragon- 
head, 1 ’ or leader, nicknamed Broken Teeth KoL The 
police believe he has fled Macau. (Reuters) 

Korean Talks 
On Food Aid 
Deadlocked * 

By Steven Mufson 

Washington Post Service 

BEIJING — Talks here between 
North and South Korean Red Cross of- 
ficials broke up Monday without reach- 
ing any agreement on fee amount or 
conditions for delivering food aid from 
the South to the hungry North. 

The two sides could meet again within 
10 days, negotiators said. Bnt for now, 
they said, fee talks are deadlocked over 
South Korean proposals that food pack- 
ages be identified as gifts from fee 
South, feat Sooth Koreans be allowed 
into fee North to monitor distribution, 
and that shipments move directly to fee 
North by land through the truce town of 
Panmunjom at the border. 

Despite fee threat of widespread fam- 
ine, fee hermit-like North, which fought . 
the South from 1950 to 1953 and which 
is still technically at war wife the Seoul, 
is believed to oppose such measures.^ 
which would stress the failure of North*? 
Korea's long-cherished policy of self- 

At fee talks Monday, which lasted 2 
hours 45 minu tes. North Korean Red 
Cites officials said feat they could not 
discuss distribution without knowing the 
size of the food donation planned by the 
South Korean Red Cross. 

The South Korean side said that fee 
amounts were uncertain because they 
would depend on the size of private 
donations. But South Korean Red Cross 
officials suggested feat support could 
continue over some time. 

The negotiations here are unusual be- 
cause they are the first direct talks in five 
years between North and South Korean 
Red Cross officials. The talks are being 
watched closely by diplomats for in- 
dications of how desperate North Korea 
is for food assistance. The diplomats are 
also looking for signs of how Noth 
Korean officials might deal with South 
Koreans generally as the United States 
and China attempt to push the two sides 
into direct peace talks in New York. 

North Korea has said it will join the j* 
talks only if it receives guarantees of food ft 
aid and an easing of trade sanctions. 

Ole Groaning, a Pyongyang-based of- 
ficial of fee International Federation of 
Red Cross and Red Crescent Societies, 
said it was unrealistic for South Korea to 
expect North Korea to agree to its de- 
mands regarding distribution of aid. 

“We recognize that there are certain 

g ititical conditions for working in North 
area,” Mr. Gronning said. “I’m not 
trying to change North Korean policy. 

I'm trying to help people." 



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Cambodian Attack GOLD: Indonesia Bonanza Proves a Hoax 
Sparks Fear of New 
Political Infighting 

Continued from Page 1 

mm* by BranfM! Emma Quigtoy 

®New York Times/ Edited by fdU Shorts. 

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34 Nutritional abbr. 

SS N.Y C. summer 
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Solution to Puzzle of May 5 

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PHNOM PENH — Unidentified gun- 
men killed an announcer and wounded 
two other people in an attack on a state- 
run television studio in southern Cam- 
bodia. and fee police said Monday that 
the attack appeared to have been po- 
litically motivated. 

Officials feared that the attack would 
mark a new escalation in fee dispute 
between fee two top parties in Cam- 
bodia’s stumbling coalition govern- 
ment, the royalist Funcinpec and fee 
Cambodian People's Party, formerly the 
Communist Party. 

The conflict has nearly paralyzed the 
country and brought it to the brink of a 
war between factions loyal to the na- 
tion’s rival prime ministers. Prince 
Norodom Ranariddh and Hun Sen. 

Seven men went to the studio in the 
southern port city of Sihanoukville on 
Sunday night and opened fire with AK- 
47 assault rifles and rocket-propelled 

One announcer was shot and died later 
at a hospital, another announcer and a 
guard were wounded, and transmission 
equipment was destroyed, fee police 
chief of Sihanoukville, Em B unsafe, 
said by telephone. 

An Interior Ministry official said Fun- 
cinpec had asked days earlier feat the 
Sihanoukville state television network 
broadcast a speech by one of its top 
officials, attacking the Cambodian 
People's Party. Armed men later went to 
the house of the station chief and made 
the same demand. The station chief re- 
fused. (Reuters, AP) 

c unties records in Canada show that fee 
Walshes earned nearly $26 million last 
year from stock sales and options. Mr. 
Felderhof cashed out more than $30 
million in shares. 

The Toronto Stock Exchange said 
Monday that it would suspend Bre-X 
shares until further notice. 

Bre-X's discovery began to unravel in 
January, when a fire at fee she destroyed 
geological records. On March 19. Mike de 
Guzman, fee geologist who had co-dis- 
covered fee Busang site, fell to his death 
from a helicopter over fee Indonesian 
jungle. He was en route to a meeting wife 
representatives of Freeport McMoRan. 

On March 26, Freeport said seven of 
its test boles drilled near supposedly rich 
holes made by Bre-X had found only 
“insignificant amounts of gold." That 
triggered a panic among investors. On 
March 27, Bre-X stock fell 84 percent in 
value in a volume of trading so great feat 
it repeatedly knocked out fee main com- 
puter at fee Toronto Stock Exchange. 

Mr. Walsh responded that the Freeport 
tests must be wrong and hired Strath- 
cona, a highly respected consulting firm, 
to test fee samples independently. Strafe- 
cona in effect endorsed the Freeport tests, 
confirming suspicions feat particles of 
gold had been planted in fee soil samples 
drawn from fee site, a practice known in 
fee mining trade as “salting." 

Late last week, Bre-X officials were 
talking freely about the need for large- 
scale bulk samples to accurately deter- 
mine how much gold lies under the 
jungle floor at a difficult site like Busang. 
Bre-X had drilled 300 test holes over the 
course of more than two years in coming 
up wife its initial results. Both Freeport's 
and Strathcona’s testing was limited to a 
handful of holes. Bre-X is likely to try to 

defend itself by insisting feat more thor- 
ough testing needs to be done. 

While Strafecona did not identity any 
suspects, attention bas focused on Mr. de 
Guzman, whose plunge from fee heli- 
copter was described by Indonesian and 
Bre-X officials as a suicide brought on 
by his depression over a recent medical 
diagnosis feat he had hepatitis B. 

The Indonesian government vowed 
Monday to punish whoever was respon- 
sible for the huge gold mining hoax. 

“The lawbreakers must be sanc- 
tioned,” Mining Minister Ida Bagus 
Sudjana said. 

Mr. Hasan urged the government to 
impose stricter regulations for fee anal- 
ysis of ore samples, including a require- 
ment to seek a second opinion from Jl 
independent experts before new finds* 
are announced. 

“I think fee government will execute 
stronger regulations so they will protect 
international investors more,” he said. 

But Mr. Hasan said that neither he nor 
the Indonesian government had been 
embarrassed by fee affair. 

“It is all business,” he said. “And in 
business sometimes you make money. 
Sometimes you don't." 

Until it began to unravel, fee Bre-X 
story seemed like a capitalist fairy tale 
come true. Mr. Walsh was a persevering 
but largely unsuccessful entrepreneur 
emerging from personal bankruptcy in 
1993 when he scraped together enough 
capital to buy exploration rights to the 
Busang claim. 

Shortly afterward, Mr. Felderhof and 
Mr. de Guzman reported gold on fee site. 
Then, what was first reported as a solid, 
if unspectacular, claim began to grow in 
value. Bre-X raised the estimates of the 
amount of gold from 30 million ounces 
to 39.2 million, 57.3 million, 70 million 
and more. (LAT. ATT, AFP. Reuters) 

outside Canada 
can vote. 

For more information, please call Elections Canada at 
1-613-993-2975, or toll-free from the United States at 
1-800-1 NF0-V0TE (1-800-463-6868) 

TTY/TDD: 1-800-361-8935 toll-free from the United States 
Internet http'y/ 






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Tight Race Is Shaping Up in France 

Poll Shows Governing Coalition and Leftists at 38 % Each 


PARIS — An opinion poll released 
Monday showed die French left running 
neck-and-neck with the governing cen- 
ter-right coalition and gaining ground 
before a two-stage parliamentary elec- 
tion (hi May 25 and June 1. 

The Louis Harris survey for LCI tele- 
vision found the center-right coalition 
and the opposition alliance of Socialists 
and Communists could poll 38 percent 
of the votes each. 77ie Harris poll was 
the third in two days showing the left 
gaining ground. 

Among the 1.003 voters questioned 
on Friday and Saturday, 45 percent said 
they hoped the left would win — up 
from 42 percent the previous week — 
while 43 percent hoped for a center- 

right victory, a percentage that was un- 

But 63 percent believed the conser- 
vatives were more likely to win; only 21 
percent expected a triumph by the left. 

The survey put support for the gov- 
erning coalition at 34 percent, down 3 
points from the previous week, with 
other allied patties on the right polling 
an additional 4 percent 

The Socialists stood at 27.5 percent up 
from 26 percent, with their Communist 
allies gaining 0-5 percent, to 1 0.5 percent 
Ecologist groups, of which the biggest, 
the Greens, is an ally of the left, were 
unchanged at 7 percent The far-right 
National Root was stable at 15 percent. 

Eighteen percent of voters had no 
opinion. Among those who did, 30 per- 

French Truckers Block Roads 

Agence Frunce-Presse 

BORDEAUX — A French trade union official was killed Monday as 
trackers set up roadblocks on major thoroughfares and at fuel depots in what 
was feared could be a replay of crippling truckers' protests in November. 

The official, Didier Pinson, was killed accidentally when a truck from 
Toulouse began a roadblock at Ambes near this southwestern city, unions and 
thepolice said. 

The police said Mr. Pinson, 41 , was killed after jumping onto the steps of the 
truck, apparently in a bid to persuade the driver not to force the roadblock. 
Though the track was moving slowly, the official fell off and was crushed. 

The strike was called over salaries, working conditions and the right to retire 
at 55 — the same demands as those that had sparked the 12-day trackers' strike 
in November that disrupted traffic across France. 

Roadblocks were also set upon several roads in northern Ranee after the call 
by the Communist-led CGT and the independent Force Ouvriere unions for a 
one-day strike. Other roadblocks, traffic slowdowns and protest strikes were 
reported in Mulhouse, Lille and Toulouse. 

A traffic slowdown was mounted on at least one road in the north, while in 
Bordeaux, truckers blocked access to two fuel depots, according to the CRICR 
transport information authority. 

In November, truckers set up about 250 roadblocks nationwide for 12 days, 
virtually paralyzing the country and drawing protests from France's European 
neighbors after foreign truckers were caught in die chaos. 

cent said they could still change their 

Asked who was staging the best elec- 
tion campaign, 22 percent chose the 
Socialist leader Lionel Jospin and 13 
percent chose Rime Minister Alain 

The survey did not project a break- 
down of seats in die National Assembly. 
But two polls published Monday cut the 
predicted majority of the Rally for the 
Republic and Union for French De- 
mocracy, which controlled 80 percent 
of the outgoing National Assembly. 

A survey by the Sofres polling in- 
stitute, published in Le Figaro, pre- 
dicted the center-right would win by 29 
seats, while a BVA survey put the lead 
at34 seats. On Sunday, an IFOPpoli had 
predicted a 14-seat margin of victory. 

Leaders of the center-right bloc 
warned against complacency Monday. 

As the campaign was officially 
opened, Mb. Juppe underlined the 
gamble taken by President Jacques 
Chirac in calling the elections a year 
before they were due. 

He said he had always believed that 
the elections “would be very well con- 
tested.*' and Foreign Minister Herve de 
Chare tie warned bluntly, “Things are 
not sorted out in advance." 

In what was seen by some as another 
sign of the seriousness with which the 
right is taking die threat, Mr. Chirac was 

reported to be preparing a direct appeal 
to French voters — probably on Wed- 
nesday, the second anniversary of bis 
own election. 

A record 6,300 candidates had re- 
gistered in Ranee's 577 constituencies 
by midnight Sunday, the deadline for 
the official four-week campaign. 

The race began April 21, when Mr. 
Chirac dissolved Parliament and an- 
nounced an early election, saying he 
needed a mandate to take France further 
into the European Uni an. (Reuters, AFP) 

, Dana Kwcuayev/Rntfen 

CONQUEST — A worker hanging red flags in Red Square in 
preparation for Victory Day. On Friday, Russia will celebrate the 
52d anniversary of the defeat of Nazi Germany in World War II. 


180 Albanian Refugees 
Repatriated by Italy 

ROME — Italy sent home 1 80 Albanians, 
classified as ‘ ‘undesirables,** just hours after 
they arrived on a boat packed with more than 
1,000 refugees at the southern port of Bari, 
coast guard officials said Monday. 

A port official said the aged tanker was 
carrying 1,229 Albanians, including many 
women and children, when it docked Sunday. 
Most were sent to refugee centers around the 
country but some were repatriated imme- 

. • The tanker, the Irini. set out Saturday from 

close to the northern Albanian city of 
Shkoder and was intercepted Sunday in I tali- 

Shkoder and was intercepted Sunday 
an waters. The coast guard tried in vain to 
persuade it to turn back. (Reuters) 


Bikers Are Suspected 
In Swedish Shop Blast 

m : '■ 

STOCKHOLM — A powerful bomb des- 
troyed an automobile repair shop before 
dawn Monday in an attack thai police suspect 
is tied to the Nordic biker war. 

There were no injuries in the explosion in 
an industrial area of Helsingborg, about 500 
kilometers (about 300 miles) southwest of 
Stockholm. No arrests were made. 

The police said the shop had repaired cars 
belonging to members of the Banoidos biker 
gang, which has been feuding with the Hell’s 
Angels for more than three years in Sweden. 
Finland, Denmark and Norway. (AP) 

ETA Bomb Rocks Base 

MADRID — As the funeral of a slain 
policeman took place Monday, the armed 
Basque separatist group ETA set off a bomb 
inside the living quarters of a northern Span- 
ish military base, news reports said. 

No one was reported wounded in the blast 
at the Araca military base on the outskirts of 
the Basque regional capital. Vitoria, said the 
private Europa Press news agency. The ex- 
plosion badly damaged the office of a col- 

The explosion came as the funeral took 
place in the Basque city of Bilbao of a Civil 
Guard officer who was shot at a restaurant 
Saturday in a killing that bore the hallmarks 
of ETA. (API 

Polish Chief Is Pelted 

WARSAW — Poland is concerned that its 

president’s security came under threat when 
four rightist Poles eor close enough m Cline 


four rightist Poles gor close enough io fling 
eggs at him during a visit to Paris, the gov- 
ernment's spokeswoman said Monday. 

Aleksandra Jakubowska. a spokeswoman 
for President Aleksander Kwasniewski, said 
that if eggs could reach the president then so 
could stones and hand grenades. 

Mr. Kwasniewski and his wife, Jolanla. 
were entering a Paris theater Sunday when 
the protesters threw the eggs, which missed 
their target. (Reuters) 

Italy Stance on Budget 


fe The capital of Andalusia is arguably the most beautiful city in Spain. Its hidden 
» delights and unique character are joys shared by its people and irs visitors. 

ROME — The Italian government decided 
Monday to put a supplementary budget, 
which is aimed at reducing its deficit to 
qualify for the European single currency, to a 
vote of confidence in Parliament. 

The center-left government adopted the 
supplementary March 27 to ensure that Italy 
qualified as a founder of the single currency 
that is to be inaugurated Jan. 1 . 1 999. 

The rightist opposition, led by Silvio Ber- 
lusconi, strongly attacked the supplementary 
budget and warned that it would adopt ob- 
structive tactics in Parliament. (AFP) 

For the Record 

Silvio Berlusconi, 60, has had emergency 
surgery to remove a kidney stone, a statement 
issued by his political party Forza Italia said 
Monda y- (Reuters) 

Ex- King’s Son 
Hurts Chance 
To End Exile * 
From Italy 

The Associated Press 

ROME — The center-left govern- 
ment says it wants to allow the son of the 
last Italian king to return from exile. But 
the royal descendant is not malting it 
easy for himself. 

Comments by the descendant, Victor 
Emmanuel, that the anti-Semitic laws 
adopted, in Italy's Fascist era and ap- 
proved by the royal house “weren’t so 
terrible" have drawn a storm of protest. 

On Monday, Deputy Prime Minister 
.Walter Veltroni said such remarks re- 
called the '‘political madness" of Fas- 
cist Italy, which led to anti-Semitism 
and the jailing of opponents and helped 
bring on World War II. 

... . Nevertheless. Mr. Veltroni,. speaking 
• to a group of students, said that the 
king's male descendants should be al- 
lowed once again to touch Italian soil. 

The cabinet presented a bill to ParJft 
liameht to end the royal ban instituted 
after a postwar referendum that turned 
Italy into a republic and abolished the 
monarchy. If approved, it would dear 
the way for the return of Victor Em- 
manuel. who left Italy at the age of 9 and 
now lives in Geneva, and his son Em- 
manuel Filiberto. 25. 

Victor Emmanuel's father, Umberto 
II, reigned for 26 days before being sent 
into exile in 1946. He died in Geneva in 
1983. Umberto ITs father, Victor Em- 
manuel ID, supported Benito Mus- 
solini’s Fasdst government. 

In 1938, he signed laws promulgated 
by Mussolini that expelled Jews from 
government and university jobs and the 
military and restricted their opportu- 
nities for work and schooling and then- 
right to own property. Nearly 8,000 
Jews in Italy were sent to concentration 
camps, and only 600 of them survived. 

After the cabinet announced its 
move, Italian state television asked Vic- 
tor Emmanuel in Geneva whether he 
thought it his duty to make a symbolic 
apology for the laws. 

“No, no. I wasn't even born,” he£? 
said. Of the royal house and the laws, her 
said, “No. they weren't so terrible." 

He later issued a statement saying he 
was only a year old when the laws were 
signed and bore no responsibility for 
them. He said his grandfather die king 
opposed the laws and tried to reduce their 
impact. He declared himself opposed “to 
any form of anti-Semitism ana racism." 

Members of the center-right oppo- 
sition said that if die king’s descendants 
were allowed to return, the constitu- 
tional ban on reconsjiuctingJheJ^ascist 
party also should be changed.. 

The rightist component of .the op- 
position. the National Alliance, is de- 
scended from the neofascist party set up 
by Mussolini's supporters just after the 
war. One of its deputies is Mussolini’s, 
granddaughter, Alessandro Mussolini. 

At Swiss Bank 
Flees to U.S. 


ZURICH — A night watchman who 
lost his job after blowing the whistle on - 
a Swiss bank's shredding of Holocaust-^ 
era documents has told a newspaper that 
he has fled to the United States to escape 
death threats and find a job. 

“I would prefer to stay in Switzer- 
land. but the people in my country don't 
understand me.” the former watchman, 
Christoph Meili, told a Swiss daily, Le 
Nouveau Quotidien, from New York in 
an interview published Monday. “Iam 
being treated like a criminal.” 

Mr. Meili smuggled documents 
bound for the shredder out of Union 
Bank of Switzerland in January and 
gave them to Jewish leaders in Zurich, 
who alerted prosecutors to a possible 
violation of a ban on destroying any 
material that could help find unclaimed 

Mr. Meili, who is married and has 
two children, was suspended from his 
job by the security company for which 
he worked, and later dismissed. 

UBS says the destruction of old re- 
cords from a subsidiary it acquired in 
1945 was a “regrettable accident” and 
insists no client records were lost that 
could aid the search for missing assets 
that Hitler’s victims may have deposited 
in Swiss banks. 

Jewish groups hailed Mr. Meili, 28. 

as a hero and held him up a model oif 
moral courage. But the incident coul * 
lead to criminal charges against him of 
violating banking secrecy. 

“I don’t really feel safe any more," 
Mr. Meili said, noting one survey found 
most Swiss did not approve of his ac- 
tion. ‘ ‘ We received death threats against 
us and the children." 

Mr. Meili said he hoped allies like 
Senator Alfonse D’ Amato. Republican 
of New York, and the World Jewish 
Congress — outspoken critics of 
Switzerland’s secretive banks — could 
help him make a new life in the United 

He stopped drawing a salary at the 
end ot April and has to wait several 
weeks to draw unemployment assist- 
ance after an unsuccessful stint as a 
mobile telephone salesman. 

In January, the Anti -Defamation 
League of B nai-B’rith presented Mr. 
Meili a golden mcnorah, a Jewish re* 
iigious candle -holder, and 50,000 Swiss* 
francs ($34,000) in January to help cov- 
er living expenses and legal fees, but 
Mr. Meili said he had not seen a cent of 
the money. 

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For Arabs of East Jerusalem, an ID War With the Israelis 

Steady Confiscation of Legal Pap ers 
Puts Thousands in Precarious Limbo 

By Barton Gellman under u.s. and international pres- 

Washington Pan sure, Mr. Netanyahu said on CNN last 

JERTfQAr m week that he would ‘ ‘make it easier for 

nanr nnH u ,nKw, fcI ght months preg- these who have lost their identity cards 
- ™ Eef feet - 0**^ to get them back." 

■ Israeli TmPTinr°vr^ to the He has not, however, ordered a halt in 

■ 'SSltSS what she the revocation of Arab ID cards or draf- 

; fSSrtSrS !?• ? J°>t ul milestone, ted legislation to do so. 

X?®?? pf watting, the East Jeru- David Bar Ulan, the crime minister's 

Under U.S. and international 
sure, Mr. Netanyahu said on CN1 

. > • ’“t 

> -a •• 



At ^ 

Mt'i - 




to the He has not, however, ordered a halt in 

whai she the revocation of Arab ID cards or draf- 
fSytl^S !?• * J°>t ul milestone, ted legislation to do so. 
salem aSk East Jeru ‘ David Bar Ilian, the prime minister's 

s Y rarQoned for a director of communication, said Mr. 
on her request for Netanyahu wanted to change the law but 
legal, pap ers for her, husband. that it would “not be an Ssy matter" 

°k ! cnew something had because there * ‘may be members of the 

it- *• f. 

^ • * y 

•s '• • 


Netanyahu wanted to change the law but 
that it would "not be an easy matter" 

, ____ _ . - --- o — because there "may be members of the 

when the permit clerk pro- coalition who object to it strenuously." 

. “ * J^ 111 tener typed in Hebrew, The man most responsible for eo- 
- which sbe could not read. forcing the policy. Interior Minister Eli 

tivari ,,a ^fSTn~j U w w P^ t w 35 written Suissa, is one of those. He said his min- 

wh o was istry’s goal, acting within the law, was 
• . Israel captured her “to prevent a flooding of Jerusalem ' ’ by 

' ne^^horhood from Jordan in 1967. Arabs and promote “arise in the Jewish 
He said. Everything is fine, just population." 

: , 8 ive ® y?™ identity card.' I gave him “We will fight with all our power in 
roy iU and he gave me the pa per and he the war over Jerusalem, whether through 
° U i c 0ur husband and your chil- this law or through the building and 
dren have 15 days to leave the country.' planning law or another law,’ * he said in 
•- g°°d-bye.” an interview. “It does not matter what 

^ ?/ 

■ Sf 11 ^ ve ^ da ^ ,s to leave * e count ry-’ planning law or another law,’ ’ he sal 
f Ihen he saxd good-bye.” an interview. “It does not matter \ 

- il4T ^ rS- whose first name means means I use or other ministers use.’ 

• ’* Jerusalemite” in Arabic, is one of The identity cards in question, granted 
more than a thousand Arabs whose right to East Jerusalem Arabs after Israel's 
"" to h*® ip East Jerusalem has been re- victory in the 1967 war, confer the right 
voted by Israel since last year. She of “permanent residence." Although 
learn ed, after trudging through the rain falling short of citizenship, the cards 
K> office the next day, that entitle their holders to live and work in 
she had no right to a hearing or appeal, the city without the special permits re- 
" ■< I am afraid to give birth because I quired of otber Palestinians 
- have no papers," said Mrs. Manko, who Confiscation of the identity cards is 
■'"is due any day. “I don’t know which intended, avowedly, to effect the de- 

Autbority’s Interior Ministry in AI Ram, near Jerusalem. Tbe Pal estinians accused Israeli agents of setting the fire. 

• is due any day. I don t know which intended, avowedly, to effect the de- 11 if T/ - /I l ■ - T\« - fmr k 

■topual to go to How wiU 1 reg&ert pmufe of their h/ldos ta the oily. MlHTEY JVemijtOIl, LOllHIllllSt, DlCS Rt 79 
How will I get a birth certificate?" The government has not sent soldiers J Ml ' ' 

• How will I get a birth certificate?" The government has not sent soldiers 
, The Israeli practice of stripping East and trucks to enforce deportations, as it 
- Jerusalem Arabs of their legal papers, did in the West Bank before an inter- 

• ' begun in the last months of the previous natio nal outcry stopped the practice in 
• government and increased since Prime 1 989. But the loss of legal papers makes 

- Minister Benjamin Netanyahu came to normal life impossible and exposes 
power, is transforming those affected those without them to tbe risk of arrest 

' into illegal immigrants in the city of their Those who remain illegally lose their 

• birth. right to receive health care, to collect 

With 1,047 cases acknowledged by social insurance or to enroll their cHl- 
' - the government since last year, and thou- dren in school Some lose the only 

- sands more family members affected in means they had to travel across inter- 
- ' practice, the campaign has reached a national boundaries. 

• scale at which it is beginning to shift tbe Among those ordered to leave their 

city's demographic balance. homes in Jerusalem are 105 Arabs who 

The Associated Press 

NEW YORK — Murray Kempton, 
tbe- Pulitzer Prize-winning columnist 
who used to make his way to news 
events by bicycling through the canyons 
of Manhattan, died Monday. He was 79 

those without them to tbe risk of arrest events by bicycling through the canyons 
Those who remain illegally lose their of Manhattan, died Monday. He was 79 
right to receive health care, to collect years old. 

social insurance or to enroll their chil- Mr. Kempton had been diagnosed 
dren in schooL Some lose the only with cancer last winter, but the cause of 
means they had to travel across inter- death was apparently a heart attack. 

ous publications. As recently as five 
years ago, he would pedal his bike to an 
assignment wearing a three-piece suit 
and clip on his right leg. 

the tough -mindednes s, courage and sen- 
sitivity that axe in the best tradition of the 

Mr. Kempton' s freelance articles ap- 

ot Manhattan, died Monday. He was 79 many years at the New York Post 
years old. In 1985, he received the Pulitzer for 

Mr. Kempton had been diagnosed commentary. He also won two George 
with cancer last winter, but the cause of Polk awards during his career. 

city s demographic balance, 
j' Less publicized than conflicts over 
- Jewish home-building in East Jerusalem 

tional boundaries. Chiara Coletti, a friend and former col- 

Among those ordered to leave their league of the Newsday columnist said, 
homes in Jerusalem are 105 Arabs who An elegant phrase-maker, Mr. Kemp- 
hold U.S. passports or green cards, a fact ton was a 

and the West Bank, the confiscation of protests from the U; 
' Jerusalem IDs looms at least as large in Kaihy Riley, chi 

die popular Palestinian belief that Israel freer in Jerusalem, s 

that has drawn sharp bat fruitless 
protests from the United Stares. 

Kathy Riley, chief U.S. consular of- 
ficer in Jerusalem, said she had had five 

ton was a familiar figure on the streets of rivil rights activists or even gangland 
New York in a 45-year career with van- figures," it read, “he has demonstrated 

He joined Newsday in 1981 after peared in such magazines as the Re- 
my years at the New York Post porter. Commonweal. Life, Harper's, 
In -1985, he received the Pulitzer for Atlantic Monthly, Esquire, Playboy and 
mmentary. He also won two George the New York Review of Books, 
ilk awards during his career. He made a foray into politics in 1968 

The citation for his Polk award in as a delegate for Eugene McCarthy at the 
1988 praised him for representing “the Democratic National Convention in 
highest standards of theprofession.” Chicago. He was arrested at a street 

“Whether covering U.S. presidents, protest there and convicted of disorderly 

conduct in a march protesting die nom- 
ination of Hubert Humphrey. 

-die popular Palestinian belief that Israel Seer in Jerusalem, said she had had five *7 ATDI7. D 1 a.1 n I I Y) i i • j i 

’ intends to impose its will instead of or six meetings with the Interior Min- LtxlllUu* MxUTflOr iff Ul C rlVBS tflC mXBuCIS JTWf'CIlO lOfflCCl l fflJIMlTlltlOfl 

- negotiating as promised on the holy istn 
city’s future. havi 

The human-rights groups B’tselezn For 
and Hamokedcallthe c&mpaign a “quiet Wh; 
"deportation,’ ’ and the Palestinian leader, this 
Yasser Arafat, told foreign diplomats in A 

istry. adding: “We’re asking. 

have you changed this all of a sudden? 
For 30 years you haven’t had this policy. 
Wh^ now are you implementing 

At die same time it is stripping iden- 

Contumed from Page 1 

and chaos," Mr. Richardson said after eminent troops flee rather than fight 

ing, sweating the enemy out by raising find a way to jump into a helicopter, and 
the tension level to the point where gov- we will be left behind to pay." 

March that it amounted to “a serious tity cards from East Jerusalem Arabs, the 
- ‘ethnic cleansing campaign. " government has all but halted the grant- 

Israeli officials deny a political ing of “family reunification" permits 
-motive. They say the East Jerusalem under which spouses and chil area of 
Arabs are loang their papers under neu- residents are 

talks with Mr. Kabila. 

(Mr. Richardson brought Mr. Kabila 

With each new conquest, the threats 
grow more and more difficult to ignore. 

what a U.S. diplomat said was an urgent even as they become more fantasoc. 

owed to join them. An 

message from President Bill Clin ton.] 

- Word of a supposed threat to the Kin- 
shasa airport was already hanging thickly 
in. the air Sunday evening, this ex- 

Among Kinshasa’s elite, where there is 
deep disappointment that Marshal 
Mobutu did not conclude a deal for his 

Down the hill, in Kinshasa's teeming 
low-lying districts, people cite other rea- 
sons for regretting that Marshal Mobutu 
did not simply quit power, as many poor 
Kinshasans had hoped he would do 

“Didn’t you notice that you had to 

r ,-tral rules that apply to other nationals as Interior Ministry spokeswoman, Tova plained, many here say they believe. Mar- city a rebel assault, people already seem 
- well. Mrs. Manko and others like her, Hinson, said there was insufficient staff shal Mobutu ’s abrupt decision not to take just a hairbreadth from full-blown panic. 
‘ they maintain, are forfeiting their right to to process the backlog of 8,000 Arab a 45-minute flight borne from tbe Pointe- “Mobutu said his health would not 

•live here by moving, albeit temporarily, 
outside Jerusalem or by acquiring res- 
idency rights in another country. Israeli 
Jews are not similarly affected, they 

requests sauce 1994. During the same 
period, her ministry evaluated and ap- 
proved 236,268 applications far citizen- 

led, but to wail instead until daylight. 
Mr. Kabila has used much the same 

departure Sunday that would spare the drive through a lot of mud to get here?" 
city a rebel assault, people already seem asked Justin Mukema, a 24-year-old stu- 
just a hairbreadth from full-blown panic, dent in the Marina district- “Is it normal 
“Mobutu said bis health would not that the streets should be like this in the 
as expec- allow him to climb into a helicopter to capital of a country that is rich? Mobutu 
take him to the meetings with KabQa,” has tricked all of his adversaries until 

said, because they are citizens and not abroad, according to the Central Bureau 
subject to the same rales. of Statistics. 

ship for Jews or their family members tactic in capturing every major city of borhood of huge, high-walled villas. 

take him to the meetings with Kabila,” has tricked all of bis adversaries until 
said a resident erf Bursa, a hilly neigh- now, but the time has finally come for 

Zaire: He announces days, sometimes 
weeks, beforehand that bis men arecom- 

“ Why has he come back here then? When 

him to go." 

Other, residents heaped invectives on 

we start bearing gunfire, he will surely Marshal Mobutu, making it clear that 

Mr. KabQa and his rebels will be greeted 

Continued from Page 1 

as eagerly in Kinshasa as in any of the 

-HONG KONG: Remember the ’ 60 s , Next Rider Soys, Drawing the Line on Protests conquered- “Let Mobutu understand 

u that Zaire does not belong to him any- 

very seriously,’ ’ he said. Asked whether public protests once his legal team works groups and others who say they amount more.’ ’ said Sylvie Ndjoli, a 30-year-old 
demonstrations advocating Taiwanese out the precise language. Under pro- to a rollback on a basic freedom: the hospital worker. “Why didn’t he just 

demonstrations advocating Taiwanese out the precise language. Under ^ 
that tbe right to demonstrate would face or even Hong Kong independence posals introduced last month, people 
new restrictions if the protests ever would be allowed, he replied, “No.” wishing to stage public rallies would be 
touched on areas considered sensitive to “As a Chinese person, I would find it required to seek police permission, and 

touched on areas considered sensitive to “As a Chinese person, I would find it 
l ■ China and on questions of very, very difficult for these demon- 

9. rhinu’c tptrrifnnal iniftoritv. straQuos advocating the independence 

China’s territorial integrity. 

• He said such restrictions were nee- 

required to seek police permission, ana 
tbe police would be empowered for the 

strati cots advocating the independence first time to ban rallies if “national se- 

right to assemble peacefully. But Mr. leave yesterday?" 

■Refugees Die in Stampede 

on tbe books in other major cities. While the United Nations averted an 

He also defended hisproposaJ to place attempt to move more Rwandan 
new prohibitions against local Hong refugees by train Monday. Zairian rebel s 
Kong political parties raising funds brought hundreds by truck and dumped 
abroad — a measure seen here as aimed them by tbe bodies of those killed m a 
at thwarting the territory’s most popular stampede on the railroad, Reuters re- 
party, the Democratic Party, which won penned from Kisangani, Zaire. 

of these places taking place in Heme curity" is threatened. At present, protest new prohibitions against local 

rr II L. u>« t z- . j A “ 

' essary because China's history of defeat Kong," he said. “There is a depth of organizers are required ohly to ‘ ‘notify’ ’ Kong political parties raising funds 
and humiliation at the hands of foreign feeling by the Chinese people on these the police, and senior police officiate abroad -7 a measure seen here as aimed 
-powers gave its people “a historic bur- issues which I hope others will under- have said tbar they are not interested in at thwarting the territory’s most popular 
• den" on issues ofswvereignty. sWid mid appreciate.'' the content of protest rallies. party, the Democratic Party, which won 

... **if there is a demonstration on, let’s He said rales cm whar demonstration Those proposed new restrictions have the largest number of seats in th e 1995 
'-say Tibetan independence, it will be topics were to be off-limits would be ignited a storm of protest from political elections and which raises cadi during 
. something we wffl be looking at very, included in the local ordinance covering parties, legal associations, human-rights forays abroad by the party's leaders. 

On Sunday, 91 refugees were crushed 
to death in an overcrowded train trav- 
eling from Biaro to Kisangani. 

Israeli Is Indicted 
For Iran Dealings 

TEL AVIV — * An Israeli busi- 
nessman was indicted Monday on 
charges that he sold Iran materials 
for the development of chemical 

A court spokesman said the busi- 
nessman, Nahum Manbar, was 
charged with “collusion with an 
enemy, obstruction of justice and 
violation of a publishing ban." _ 

Tbe court barred toe release of 
farther details of the indictment, in- 
cluding other charges against Mr. 
Manbar, the spokesman said. 

Mr. Manbar was arrested March 
27 after he flew into Israel from 
Europe, where he has lived since 
1985. His arrest was kept secret 
until April 16. 

Mr. Manbar’ s wife said this 
month that all of her husband ’s busi- 
ness ties lings had been carried out 
with the knowledge of the Israeli 
defense establishment. (AFP) 

Ruling Party Claims 
Victory in Yemen 

SAN’A, Yemen — The ruling 
General People’s Congress said 
Monday that it had won 187 seats in 
the 301 -member Parliament in elec- 
tions last month, the first since a 
1 994 civil war nearly tore the coun- 
try apart. 

The party’s secretary-general, 
Abdul Karim al fryaui, also said that 
39 independents had joined toe con- 
gress, making it the single largest 
bloc in Parliament. Many of them 
are party officials who ran as in- 
dependents in the April 27 elec- 

Mr. Iiyani, also deputy prime 
minister and minister of foreign af- 
fairs, said the Islah Party had won 
54 seats. He said that six independ- 
ents had decided to join that party in 
an affiance. 

Five seats went to two opposition 
parties, be said, and the rest to in- 

The Supreme Elections Commit- 
tee was expected to announce final 
results of toe election laze Monday. 

Islah has accused the committee 
of bias, threatening court action in 
an election marred by shooting in- 
cidents that killed 22 people. 


Kidnapping Victim 
Dies in Colombia 

BOGOTA — A former legislat- 
or, held captive by leftist gaerziBas 
for almost two years, drowned in a 
river in southern Colombia over the 
weekend as he was being taken to 
another hideout, toe police said 

Rodrigo Turbay was abducted by 
rebels of the Revolutionaxy Armed 
Forces of Colombia in southern 
Caqueta province in June 1995 on 
suspicion of stealing public funds. 

Shortly before his kidnapping, 
Mr. Turbay was stripped of his post 
as Liberal Party representative in 
tbe lower chamber of Congress be- 
cause of alle gations he bad links to 
drug traffickers. (Reuters) 

For the Record 

Chechnya issued an arrest war- 
rant Monday for a guerrilla com- 
mander who took responsibility far 
a series of deadly explosions in Rus- 
sia Tbe rebel, Salman Raduyev, 
took responsibility for two explo- 
sions last month at railroad stations 
in southern Russia that killed four 
people and wounded dozens of oth- 
ers. He also said that he had bombed 
a weapons depot in Russia’s Far 
East, which caused no casualties. 


GERMANY: Need for New Model Meets Resistance to Change 

Continued from P^ge 1 

•r . 

But. since Mr. Blair’s landslide vic- 
1 Tory in tbe May 1 elections, the British 
model has raised unsettling questions 
e here for a political class that President 
: Roman Herzog has described as para- 
lyzed in its inability to define a course 
for tbe future. 

1 On its cover Monday, for instance, 
r Der Spiegel, the weekly news magazine, 
'displayed a triumphant Tony Blair wav- 
’ ing a Union Jack from tbe top of Lon- 
- -don’s Big Ben toward Germany’s top 
l Social Democrats — Oskar Lafomame, 
tbe party leader, and Gefaaxd Schroeder, 
.Jbis main," presumptive challenger- 
,.Jr“Model for toe change of power? it 

'i. -asked. . 

An d, in public utterances reflecting 
toe Blair victory, Mr. Schroeder has 
' spoken of a need far change within fas 
!. .party, so that, like “New Labour, it 
-'teadbes out beyond toe labor unions to 

1 toe middle class if it is to be a ^mtender 

in national elections scheduled for uc- 

party, he said in an interview 
- published Monday, “wants to wm and 
>£at is why it will realize we have to 
Lichange. Otherwise, there is .too gpaf a 
r danger that we will be written off as old- 
fashioned." , „ 

Mr. Schroeder, thMgh,. is m m an- 

I'omalous position. Opimonsmveys 
-show consistetuly 

Democrats. Unlike Mr. Blair’s squeaky- 
clean personal image, moreover, Mr. 
Schroeder’s private life-style got 
som ething of an airing last year when he 
left his wife for a younger woman and' 
later went on to a glittery frail in Vienna, 
frying in a private jet provided by the 
Volkswagen car giant. 

Neither could Mr. Kohl be said to 
resemble the defeated John Major. With 
an iron grip on his party, Mr. Kohl has 
made the idea of closer European in- 
tegration arallying-py, to tbe extent that 
it is seen as political heresy to even 
question the notion of a common Euro- 
pean currency, the issue that most split 

Britain's Conservatives. 

For all that, Mr. Kohl’s Christian 
Democrats have been in power for a long 
time and seem bereft of inspiration to 
solve tile country’s most pressing prob- 
lems — record unemployment and a 
creeping bewilderment about where or- 
dinftiy people fit in a rapidly chan g in g 

* T.iire the British Conservatives, 

moreover, toe Christian Democrats have 
begun to see themselves as an immutable 
ruling class, as Mr. Kohl made clear 
when he announced last month that be 
would run for an unparalleled fifth term 
of office next year. 

Mr. Kohl has always played and won 
on the idea that, in times of uncertainty, 
enough Germans will display an instinct- 
ive conservatism and vote for what they 
know: rather an experienced chancellor, 
he has said dismissively of his adversar- 
ies, than a man in a midlife crisis. 

Equally though, opinion surveys 
show an ambivalence toward him: 
While roughly 60 percent of respondents 
say they think he will win a fifth term 
next year, cmly^ 40 percent say they want 
him to. 

For the Social Democrats, by contrast, 
the issue is to define an alternative, 
either, as Mr. Lafoniaine does, by op- 
posing what be depicts as Mr. Kohl’s 
dismantling of die welfare state, or, as 
Mr. Schroeder does, by advocating a far 
broader need for change. 

IXICO: Awaiting the Northern Giant 

tribute to Pope John Paul ITs 
visit to Lebanon this weekend. 

Continued from Page 1 

arable, there is rarely a sense of shared 
problems or common future, except in 
academic circles and at high levels of 
business and government 

“Clinton comes confident that be is 
considered a ‘friend’ because he has 
rescued us twice, no matter what toe 
U.S. Congress thinks," said Marco Ras- 
con. an outspoken congressman from 
Mexico’s leftist opposition party, in a 
recent newspaper commentary. 

“Clinton represents those who pro- 
pose intentionally provoking a crisis in 
Mexico to generate a ‘conditional res- 
cue,’ which effectively results in the 
U.S. imposing its own conditions." 

Such bitterness might surprise Mr. 
Clinton, who stuck his political neck out 
to push for passage of toe North Amer- 
ican Free Trade Agreement, who 
stitched together a $50 billion bailout 
when toe Mexican peso collapsed in late 
1994 and who battled congressional ef- 
forts tiiis year to decertify Mexico as a 

cooperative partner in the campaign 

TV: Nowhere to Hide as It Invades Everywhere From Dentist’s Chair to Golf Driving Range 

Continued from Page 1 

r respondents teel he womu — 

Social Democratic candidate «** 
.than Mr. Lafontaine. E ^Jjkou§’ 
-within toe Social DemocraficPaTO, Mr- 
^Schroeder has far less support than Mr. 

i”not go too far, ettber. At53, J^ 
■ ^Schroder is 10 years okjcr md 
from being able to remodel toe Social 

food commercials, has become a staple of toe daily 
curriculum in some public-education systems. 

The children’s haircut chain Cartoon Cuts puts 
television sets in front of the bather’s chair to keep 
young customers distracted. 

NiSsen Mafia Research, tbe aiidimx-measuremenl 

company, reports that most “out of home" viewing is 
donefa the workplace. Besides regular programming, 

Nielsen also iares an anay of “place-based television 
networks — specialized channels that seek torture 

to^tSon ofpeopie while they are doing something 
other than watching television. 

in shopping mall food courts (Cafe USA), in bowling 
alleys (Strike 10), in video arcades (Channel M), and on 
golf driving ranges (Pinpoint Golf Advertising). 

Tbe biggest name in toe field is toe CNN founder, 
Ted Turner, whose Tomer Private Networks operates 
toe airport channel and owns part of the food-court and 
doctor, waiting room channels. It also supplies pro- 
grams to an in-flight airline channel; a c hanne l that 
plays on 250 college campuses, and another aimed at 
auto-para stores. 

Tbe average American household had the television 
on for 7 hours 15 minutes per day in 1996, according to 

The fallout from so much television is well studied. 

Fbr decades, television has been blamed for everything 
from promoting violence in real life to trivializing 
political discourse. A more prosaic concern arises as 
televisions crowd into spaces that formally had been 
TV-free: simple peace 01 mind. 

“Everybody talks about freedom of speech, but 
what abont the freedom of my ears and eyes not to be 
bombarded every place I go?" said Joanne Cantor, a 
University of Wisconsin professor who studies tele- 
vision. “What about freedom from exposure?" 

If the sheer number of sets doesn’t get to you, clever 
technology ought The sets used by Mr. Tomer’s 
airport channel, for example, have a special drown-out 
volume control. If people near tbe set are talking, the 
volume automatically rises. 

But far from receiving plaudits, the 
United States gets pounded daily in the 
Mexican ness and on the floor of Con- 
gress in Mexico City. 

“There’s a lot of irritation against tbe 
U.S. government," Cuauhtemoc Carde- 
nas, the center-left Party of the Demo- 
cratic Revolution candidate for mayor of 
Mexico City, said in an interview. 

When Mexican officials visited the 
White House to help plan Mr. Clinton's 
visit, they recommended that he tailor 
his speeches to winning the support of 
the Mexican public, partly by drawing a 
clear distinction between his pro-Mex- 
ican attitudes and the supposedly anti- 
Mexican actions of tbe LLS. Congress, 
according to Mexican officials. 

Mr. Zedillo conceded Friday that, in 
recent weeks, relations “were not par- 
ticularly smooth." 

“Tbe key challenge for the president 
is to repair the breach,” said a White 
House official, noting the frayed feel- 
ings and lingerie distrust between the 
two countries. After a stormy winter — 
during which Mexico arrested its anti- 
drug czar on narcotics charges while the 
U.fa Congress thrashed Mexico in the 
certification debate and enacted more 
stringent immigration law — senior of- 
ficials in both governments are eager to 

Thomas McLarty, the president’s spe- 
cial envoy for the Americas, said that 
“there’s a tremendous amount of com- 
merce and other links, but it’s not toe 
kind of family or personal relationship" 
that is fundamental in a “meaningful 
and deep relationship." & 

Ten bilateral agreements are to be 
signed during toe visit, the cornerstone 
of which is the scheduled release of a 
joint assessment of the drug plague. 

M. v -' 



TUESDAY, MAT 6, 1997 





(tribune Zaire’s Future Could Be Worse Than Its Past 



Suharto Runs Scared 

L ONDON — As fee United States 
and Europe tty to broker a res- 

1 ■ . .« • ■ _ FT_! __ a! _ 1_ „ fl J 

By William Shawcross 

Although Indonesia’s parliamentary 
elections will not be heia until May 29, 
the government has already announced 
that it expects to get 70.02 percent of 
the vote. This is not evidence of ad- 
vanced polling techniques, but rather 
of old-style political control- Elections 
in Indonesia are just another way to 
rally support for President Suharto and 

his government. Since this year’s elec- 
tions are the least free in decades, it is 
safe to assume the government thinks 
its popularity is slipping. 

Voters will elect 425 members of 
Par liam ent. Next year, those parlia- 
mentarians will join 75 representatives 
of die military and 500 people of the 
government's choosing to elect a pres- 
ident. All indications are that President 
Suharto, who is 75 and has been in 
power for more than 30 years, wants 
and will get another five-year term. 
Seven of his relatives are candidates 
for Parliament and be may choose one 
of his children to succeed him. 

Ten years ago, the ruling party won 
73 percent of the vote, but in the 1992 

election the figure dropped to 68 per- 
cent. This year Mr. Saharto is takina no 

cent. This year Mr. Suharto is taking no 
chances. All the candidates are pro- 
governmenL The leader of one of the 
other government-approved parties, 
Megawati Sukarnoputri, began to ac- 

quire an independent voice and a fol- 
lowing. The government quickly al- 

lowing. The government quickly en- 
gineered a coup in her party and she is 
no longer its head. Many prominent 
critics of the government are on trial 

for subversion. No election street ral- 
lies are permitted, and all politicians’ 
statements on radio and TV must be 
cleared by the government. 

The restrictions are in part an attempt 
to prevent campaign violence in a year 
that has seat a senes of riots. The first 
major one was last July, after govern- 
ment troops invaded Mrs. Megawati's 
party bearkpiarters. Since then hundreds 
have died m riots all over the country. 
Indonesians in terp ret the violence as a 
sign of discontent and b lame the ab- 
sence of political outlets for protest 
The campaign restrictions, how- 
ever, also reveal the government’s 
panic. Some students and Megawati 
supporters have begun an underground 
movement to convince people not to 
vote. The only election result that will 
actually test the government’s pop- 
ularity is voter turnout, which is his- 
torically over 90 percent 
While in some Asian countries 
prosperity has brought popular de- 
mands for a more open political system, 
this has not yet happened in Indonesia. 
Despite impressive economic growth, 
Indonesia's middle class is still small 
by Asian standards, and largely rnmif. 
up of Chinese merchants, who tend not 
to be political, and government-em- 
ployed teachers and bureaucrats. The 
events of the last year are the first signs 
of a movement that may one day bring; 

democracy to Indonesia. They are ap- 
parently enough to scare Mr. Suharto. 

parenfly enough to scare Mr. Suhartc 

Backward in Belarus 

While much of the world becomes 
more democratic, the former Soviet 
republic of Belarus is moving the other 
way. Brick by brick, you can watch its 
president, Alexander Lukashenko, 
construct a new police state as he con- 
solidates his one-man rule. Indepen- 
dent radio stations are shut down, the 
nation’s legitimate Parliament abol- 
ished. The country employs more po- 
lice titan neighboring Poland, although 
Poland has roar rimes die population. 
Now every single telephone is being 
'‘re-registered.” with customers hav- 
ing to promise that their phones won’t 
be used for anti-government chatter. 
That someone will be listening in to 
enforce this promise is understood. 

Last week Mr. Lukashenko took one 
of his most dramatic steps toward turn- 
ing his country into a pariah when he 
slapped a $3 million “tax” on the 
Belarus Sotos Foundation. The foun- 
dation, bankrolled by the financier 
George Saras, has given money to sci- 
entists, hospitals, schools, museums, 
Chernobyl survivors and other victims 
of post-Soviet impoverishment. It is the 
chief scarce of funds for what remains 
ofBelarus's independent civil sector — 
media that don’t parrot the official line, 
ecology and human rights groups and 
others. The punitive tax on a tax-ex- 
empt organization is legally ludicrous, 
but, at half of last year's foundation 

budget, it’s enough to close Soros down 
in Belarus if not reversed. That may 
well be what Mr. Lukashenko wants, 
but both the West and Russia should 
make clear that it’s unacceptable. The 
United States should promise help for 
any legitimate democratic organiza- 
tions that had been depending cm Soros. 
And it could do more: Since Russia is 
subsidizing Belarus, and die West is 
subsidizing Russia, leverage exists. 

Belarus matters in part because its 
backward movement offers a discour- 
aging example to countries all around 
that are moving the other way: Poland, 
Lithuani a, Ukraine and Russia. It mat- 
ters too because Russia and Belarus are 
contemplating a union that many Rus- 
sian nationalists see as a step toward 
recreating the Soviet empire. 

Some Russians see this union as a 
fitting answer to NATO expansion. 

There’s a difference, though. The na- 
tions seeking to join NATO are, with- 

tions seeking to join NATO are, with- 
out exception, democracies — and 
generally the more democratic they 
are, die more they want in. In each 
case, elected parliaments will decide 
whether to sign up. The people of 
Belarus have no such say . Russia and 
its president, Boris Yeltsin, are doing 
themselves and their own young de- 
mocracy no favors by aligning with a 
dictator such as Mr. Lukashenko. 


Oklahoma Trial 

Two years after the deadliest ter- 
rorist act ever committed on American 
soil, the trial of the Oklahoma City 
bombing case is just now getting under 
way in a racked federal courthouse in 
Denver. It is too early to predict wheth- 
er Timothy McVeigh’s defense lawyer, 
Stephen Jones, will be able to puncture 
the prosecution’s largely circumstan- 
tial case sufficiently to establish rea- 
sonable doubt and win an acquittal. But 
the incriminating accounts presented 
by key prosecution witnesses in testi- 
mony last week suggest that Mr. Jones 
does not have an easy task. 

What is clear beyond doubt, however, 
is that much more than Mr. McVeigh’s 
guilt or innocence is being tested in 
Denver. On trial with Mr. McVeigh, one 
of the two men charged in the bombing, 
is the credibility of the nation’s chieflaw 
enforcement organization, the FBL 

A highly critical report on the FBI’s 
vaunted crime laboratory released last 
month by the Justice Department's in- 
spector general has reused serious ques- 
tions about the accuracy and integnty of 
some important evidence, including the 
lab’s assessment of the size and com- 
position of the bomb, and its finding of 
residues on Mr. McVeigh’s 
knife and clothing. The defense team 
has already signaled that it will try to 
exclude witnesses and evidence from 
the FBI crime lab. using as a starting 
point the inspector general's critique of 
dishonest 3cd unscientific practices af- 
fecting the case. This exercise can only 

add to the FBI’s embarrassment. 

In a larger sense, and beyond the 
problems uncovered at the FBI’s lab, 
the case will also test the nation’s justice 
system and its ability to provide a fair 
and dignified public trial in an emo- 
tional and widely publicized case. The 
federal district judge presiding in the 
case, Richard Matsch, seems to sense 
this. He has already established a brisk 
pace and businesslike tone, making it 
clear he will keep tight control on the 
proceedings to prevent the courtroom 
' antics tolerated by the California state 
judge, Lance Ito, in the needlessly 
drawn out O. J. Simpson criminal trial. 

Unfortunately, the judge's quest for 
discipline sometimes carries him into 
dangerous territory. He has. for ex- 
ample, imposed excessively broad re- 
strictions on wbat participants in the 
trial may say outside the courtroom. He 
also scrambled the numbers by which 
the jurors were known in the selection 
process in a frivolous and ultimately 
rutile effort to prevent reporters from 
matching seated jurors to their re- 
sponses during jury screening, includ- 
ing their views on the bombing and tire 
death penalty. That is the kind erf in- 
formation the press and the public need 
to assess trial strategy and fairness. 
Almost 70 news organizations, includ- 
ing The New York Times, have filed a 
motion asking the judge to rethink his 
approach, which goes beyond wfaai is 
necessary to ensure a fair trial. 






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olution to die crisis in Zaire, they should 
carefully consider who or what might 
replace President Mobutu Sese Seko. 

There is growing evidence that die 
anti-Mobutu alliance, led by Laurent 
Kabila, is systematically murdering 
Rwandan Hutu refugees, including 
women and children, who are in eastern 
Zaire. Relief agency officials believe 
that Rwandan government soldiers, 
mostly e thnic Tutsi, are assisting in the 

In a news briefing last week, a 
spokesman for the UN High Commis- 
sioner for Refugees said his group was 
“receiving increasingly shocking re- 
ared* south o/Kisaogani” in eastern 
Zaire, and elsewhere. 

Despite reports like this from the 
United Nations and humanitarian 

his Rwandan allies, which make up tire 
Alliance of Democratic Forces for the 
liberation of the Congo. 

In recent weeks Zairian rebels have 
attacked camps from Kisangani south 
to Ubundu: anywhere from 50,000 to 
80,000 Rwandans are missing. 

Moreover, it has become clear that 
the Kabila forces are obstructing aid to 

The refugees, almost ail Hutu, fled to -refugees. Although Mr. Kabila orig- 
Zaire after the Hum-led genocide in inally agreed to an inspection by hu- 

agencies, the United States and the 
Europeans continue to make the swift 
removal of the severely ill Marshal 
Mobutu their first priority, and have 
failed to put adequate pressure on Mr. 
Kabila to restrain his troops or those of 

Rwanda in 1994. Matty of the Hutu 
men may be guilty of terrible crimes 
against die Tinsi of Rwanda. But 
justice should not be summary. 

One app alling act was committed 
late last month, at 4 in the morning, 
when about 20 rebel troops entered 
Lwiro Pediatric Hospital north of 
Bukavu in Zaire. According to several 
reports from humanitarian agencies, 
Ate hospital staff recognized foe chief 
of a Zairian rebel unit among the 

They seized about 50 Hutu children 
being treated for malnutrition and flung 
them into the back of a truck. They also 
took away about 60 adults. Two nurses 
and a health assistant who tried to 
intervene were severely beaten. It is 
still unclear wbat has happened to the 

Mr. Kabila must be 
held accountable for 
the killing of the Hutu 
refugees . 

man rights observers, there is now 
doubt about whether he will accept an 
imrartial team, according to UN of- 

xmpartial team, according to UN of- 

Under these circumstances, it is 
clear that the UN High Commissioner 
for Refugees cannot fulfill its mandate 
to protect refugees. It has only very 
restricted access to die population, and 
there is fear that if the agency takes a 
tough stand, the rebels will put up even 
more obstacles. 

Despite the crisis, tire European Un- 
ion’s tenacious commissioner for ‘hu- 
man rights j Emma' Bonin o, has had 
difficulty getting her colleagues in the 
HU to formally discuss the issue in 

The United States and the European 
Union should inform Mr. Kabila that 
they will continue their pressure on 
Marshal Mobutu only if the rebel lead- 
er agrees to try to stop the killings in 
eastern Zaire and if he agrees to reject 
basic human rights in the areas be con- 
trols. All future aid and assistance 
should depend on cooperation from 
him and the Rwandan government 

If Mr. Kabila takes power without 
his and the Rwandan military com- 
manders being held accountable, the 
in' fling could continue. 

Marshal Mobutu’s reign may have 
been terrible. What is coming could be 
even worse. 

HrJwrt K 

.v. ■ !. ■** ' ' . « ***** »«T 

- - 

«tf u .» 

rfi Pi 

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V Vi 

V ' 

The writer is on the board cf the 
International Crisis Group, a nonprofit 
organization that monitors humani- 
tarian relief. He contributed this com- 
ment to The New York Times. 

" V . -r- ■ 

* 'j*. . • 

1 isS s, . i V ; i 

I v 

Until Genocide Is Ended, There Can Be No True Globalization; 

SS-'*-*— * 

all know, genocide, char- 

TT all know, genocide, char- 
acterized by the intent to destroy 
national, ethnic or religious 
groups, is the most violent and 
pernicious form of human rights 
violations. Yet in the decades 
since the Holocaust, we have dot 
been able to prevent or halt even 
the most brutal forms of violence 
against whole groups of people. 

It is true that the international 

By Sadako Ogata 

The writer is United Nations high commissioner for refugees. 

human rights movement and es- 
pecially foe end of the Cbld War 

peciaily foe end of the Cold War 
have brought progress. The al- 

Bosnians and 
Rwandans perished 
because the major 
powers saw no 
strategic interest in 
helping them. 

lied intervention in northern Iraq 
protected the Kurds there. The 
h umanitarian interventions in 
Somalia and Bosnia saved 
people from starvation. In many 
other conflicts UN peacekeep- 
ers prevented new outbreaks of 
violence. Numerous lifesaving 
relief operations were mounted. 

All these attempt* nnthinlc- 

able some decades ago. They are 

very positive, but not enough. 
Why did it take until Augrn 

Why did it take until August 
1995 before the people of Sa- 
rajevo and other besieged cities 
in Bosnia were saved by NATO 
and peace was pushed through? 

Is neutrality morally and prac- 
tically viable in the face of wide- 

tically viable in the face of wide- 
spread atrocities? Why was no 
country prepared to step into 
Rwanda at the height of the gen- 
ocide in 1994? Why was the 
multinational force foa t had 
been authorized to come to the 
rescue of hundreds of thousands 
of refugees in eastern Zaire can- 
celed in December of last year? 
Thousands of people have per- 
ished in eastern Zaire since then. 
The answer to these questions 
seems clear. It is because the 
major powers perceived no stra- 
tegic interests or because their 

interests did not converge. In 
that sense foe situation does not 
fundamentally differ from the 
Cold War years when political 
interests, stemming from ideo- 
logical co nfr o n tation, were a 
cause for not halting the killing 
fields of Cambodia. 

In my view there can be no 
true globalization, if it is only 
economic, if we do not even 
reach out to halt genocidal situ- 
ations. While respecting cultur- 
al diversity, true globalization 
means universal respect for hu- 
man rights, of the positive side 
of man, of foe responsibility to 
provide protection against evil. 
That lies at the heart of refugee 
protection. Now, we have to 
take it one step further and be 
prepared to halt the worst evil at 
its source. That is my hope at 
die threshold of the next mil- 
lennium. We need determined 
political leadership. We need 
citizens who are prepared to 
look beyond the domestic ho- 
rizon and who can spar reluc- 
tant politicians into action. 

I understand why they want to 
avoid rides involving soldiers in 
a faraway land. One of the rea- 
sons why we need an energetic 
and effective United Nations is 
to mitigate these risks through 
international burden-sharing. It 
is also why I advocate the es- 
tablishment of an early and rapid 
deployment capability to inter- 
vene in tiie worst crisis situ- 
ations. Such a capability would 
prevent escalation, would save 
money and, wbat is more im- 
portant, would save lives. 

We need a strong United Na- 
tions human rights machinery to 
prevent but also expose viola- 
tions of human rights. We also 
need an international criminal 
court. The potential Pol Pots of 
this world — yes, the planners 
and not just the perpetrators — 

of criminal justice. And is it fair 
and realistic to expect the sur- 
vivors to forgive and to cooper- 
ate if there is no justice? In foe 

absence of justice, private re- 
venge may prevail. 

Let me now turn to another 
question. If we do not or cannot 
prevent massive human rights 
abuses, are we at least offering a 
safe haven to those escaping 
and knocking at our doors? 

In looking back, the refugee 
issues of the 1930s and 1940s 
seem simple. While some des- 
perate Jews were admitted to 
safety abroad, there were also 
man y more who were stopped in 
their tracks. In light of foe cur- 
rent debate in the United States 
about asylum-seekers without 
proper documents, I must note 
that those who managed to es- 
cape often did so by using fraud- 
ulent documents, issued and ac- 
cepted by sympathetic officials. 
It may not be so widely known 
that the Japanese Consul in Es- 
tonia, Chitoshi Suhigaia, issued 
hundreds of visas to allow Jews 
to leave Europe. Also Consul 
Ryoichi Manabe provided res- 
idence permits to Jewish 
refugees to protect their stay in 
Shanghai. You know, of course, 
about Raoul Wallenberg. These 
episodes' of personal courage are 
i mp o rtan t reminders that indi- 
viduals can make a difference. 

From our vantage point in the 
1990s, this haunting memory of 
people trapped behind borders 
was simply part of foe world's 
larger moral failure to confront 
persecution and genocide. Yet at 
tiie time, the issues seemed to be 
as complex as they appear today. 
High rates of unemployment, 
suspicion toward foreigners — 
especially those with unpopular 
religious beliefs or political 
views, exaggerated fears of the 
floodgates being opened and for- 
eign polity considerations bad a 
higher priority than the lives of 
the persecuted. In our own time, 
these concerns are very similar. 

The end of the Cold War has 
meant that refugee protection no 
longer dovetails so neatly with 
strategic imperatives. Neverthe- 
less, foe need for asylum has not 

diminished. On the contrary, the 
persecutors, torturers and war- 
mongers of the world have 
flourished in the current state of 
flux. But tiie doors are closing 
around foe world. Refugees axe 
seen primarily as a political, 
economic aim environmental 
burden. They also represent se- 
curity hazar ds. 

In foe developed world, while 
we realize that there are some 
economic migrants who abuse 
foe asylum system, we must in- 
sist that each asylum-seeker has 
his or her case duly considered 
and that the refugee definition is 
not stripped of its meaning tty a 
restrictive interpretation. One 
month ago, a new expedited re- 
moval procedure was instituted 
at U.S. ports of entry for those 
arriving without proper docu- 
ments. Many refugees will have 
trouble articulating their claim 

If we do not or 
cannot prevent 
massive rights 
abuses , we should 
at least offer 
victims a haven. 

under tiie conditions of deten- 
tion and the short time frame 
that are now in place. The new 
fast-track procedure will be par- 
ticularly difficult for survivors 
of torture and other extreme 
trauma. In the meantime, inter- 
diction of boats at sea continues, 
bringing to mind the voyage of 
the St. Louis in 193 9. 

We should work to prevent 
the deportation of Bosnian 
refugees who cannot yet return 
to their own homes. It is wishful 
thinking to assume that my of- 
fice can make repatriation pos- 
sible if political leaders in Bos- 
nia are allowed to pursue their 
heinous policies of ethnic di- 
vision and if shelter is not re- 
constructed more quickly. Pre- 
mature returns will cause great 
human suffering and may 
destabilize a fragile peace. 

Elsewhere it is vital that the 
civilian and humanitarian 
nature of refugee camps be 
maintain ed. The Rwandaq 
refugee camps in Zaire and Tan -» 
zania were controlled by armed 
men, many of whom wereprotn 
ably guilty of genocide. We 
asked for international help iq 
getting these people out of the 
camps. No country offered to 
get involved. My staff had tq 
continue feeding criminals as 
the price for feeding hundreds 
of thousands of innocent wom- 
en and childr en. We should not 
have been left in that position. 
Unarmed relief workers are ex- 
pected to face increasing danger 
in many situations. 

Why do we still care about 
asylum? Because, as in foe past* 
it is the safest mechanism wheq 
all other human rights protec- 
tions fail. I have three pleas. 
First, while managing immigra- 
tion as a legitimate concern, do 
not shut out those fleeing far 
their lives and freedom. Unlike 
others, refugees don’t have a 

Second, I urge opinion lead-; 
ers to de -dramatize and de; 
politicize the asylum debate. Dq 
not let racists and xenophobes 
set (he agenda. Asylum issues 
are manageable, particularly in 
Western countries. The total 
number of asylum-seekers of 
the West has been falling. It is 

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neither necessary nor helpful to 
invoke an atmosphere of crisis 

invoke an atmosphere of crisis 
in setting refugee policy. 1 
Third. I would ask you tq 
maintain perspective. Through-; 
out the ages, many refugees have 
enriched societies. Einstein wa^ 
a refugee. Madeleine Albright 
was one. And refugee problems 
can be solved. Millions of 
people do find refuge and mil- 
lions eventually do go home; 
Most refugees want desperately 
to go home, and their return is 
the most gratifying sight I see as 
I travel the world. 

- -\j% 



hfir , £ 

This article was adapted by 
The Washington Post from a 
speech Mrs. Ogata delivered at 
the Holocaust Memorial Mu- 
seum April 30. 

■Step** E At-*.-, 

■JosefJcft* ~.- 

Post-Ideological Lassitude: Democracy Needs a Shot of Vigor j 

P ARIS — Le Monde reports 
that its latest poll showed 

JL that its latest poll showed 
most Bench people don’t think 
it will make much difference 
who wins foe snap election 

By Flora Lewis 

called by President Jacques 
Chirac for the end of this 

Chirac for the end of this 

Nonetheless, a third of the 
voters support the existing gov- 
ernment coalition, a third sup- 
port the left opposition and a 
third don’t think it matters, the 
newspaper said. This is far from 
the popular wisdom, long de- 
plored, that “France divided in 
two” when people thought 
electoral stakes were high. 

Britain's campaign was tur- 
gid, despite some American- 
style nasty moments, convin- 
cing voters that nothing much 
will change except the arrival of 
some new faces in tbe^alls of 

Germany will vote next year, 
but already President Roman 
Herzog has excoriated his dis- 
gruntled compatriots — of all 
parties and classes — for their 
lack of initiative, indifference 
and stubborn unwillingness to 
keep up with the demands of 
changing times. 

Indeed, ideology has largely 
vanished; people no longer ar- 
gue that the decision on who 
should rule will sand foe coun- 
try to paradise or perdition. But 
confidence that democracy can 

fix whai’s wrong also seems to 
have evaporated. History hasn't 
come to an end. But the politics 
on which democracy depends to 
test the consent of the people 
have lost much interest, except 
to the politicians, who want to 
be “in” not “out.” 

This is not necessarily cyn- 
icism. There is evidence enough. 

Nearly aU nations 
that have arrived 
at democratic 
modernity have lost 
the passions that 
brought them there. 

Letters intended for publi- 
cation should be addressed 
“ Letters to the Editor” and 
contain the writer's signature, 
name and full address. Letters 
Should be brief and are subject 
to editing. We cannot be re- 
sponsible for the return of un- 
solicited manuscripts. 

that, whatever their initial in- 
tentions. modem politicians 
cannot really deliver on big 
promises, wise ones, like Bri- 
tain's Tony Blair, take care not 
to provoke revulsion by restrain- 
ing themselves to promising 
lime more than fresh energy. 

But this makes for pallid de- 
mocracy and drains the sense of 
responsibility that robust self- 
government requires. Not much 
is being offered; not much is 
expected. The problem is not 
only in Europe — America, Ja- 
pan, practically all nations 
which have arrived at demo- 
cratic modernity have lost the 
passions that brought them 

In the spring of 1968, die 
French commentator Pierre 
Viansson-Ponte noticed that 
“France is bored.” Almost im- 
mediately afterward, the coun- 
try erupted in a nationwide up- 

heaval. Perhaps Mr. Chirac 
thought to avoid that risk of 
boredom by injecting an early 
campaign into the agenda, or 
perhaps be thought a smaller 
majority would provide him 
with a more manageable, dis- 
ciplined government than at 
present ana divert French griev- 
ances from endless, disrup- 
tive demonstrations back to 

There are deep public con- 
cerns in these countries, but also 
a sense that politics are not ad- 
dressing them, focusing only on 
intricate tactics. There is no 
shortage of appeals to the broad 

Television enables every- 
body to look the candidates 
straight in the face. Still, people 
don’t feel dial their involve- 
ment is important or that their 
wishes have weight 

Leaders shake huge numbers 
of hands, roam the hinterlands, 
show themselves as much as 
possible. Yet they don't gain 
stature or arouse much enthu- 
siasm. They do govern, but they 
don’t convince. 

Voters blame the leaders for 
lacking vision, candor, consist- 
ency, a will to get things done. 
Leaders blame voters for failing 
to respond to challenge, for not 
paying attention. 

Mr. Chirac, who is on the 
right, recently said the trouble 
with the French is that they are 
“too conservative.” Both voters 
and leaders blame the media for 
trivializing issues, for Impertin- 
ence, for irresponsibility. 

They both nave some points. 
But neither is evoking the lively 
sense of participation, the right 
and duty to shape the common 

destiny and the exhilaration that 
should provide. This is a pan of 
the bewildering times. 

There is a need for serious 
examination of what has gone 
missing in foe democratic pro- 
cess and how to renew its vigor. 

Government is necessary for 
civilized society, and every- 
body wants something from 
government, though they want 
somebody else to pay for it. 
Democracy has proved itself 
the only acceptable system of 
government. It should not be 
allowed to flag. 

iS Flora Lewis 


1897: Fire’s Lesson 

An informed public, holding 
those who hold power to ac- 
count. accepting differences of 
opinion and conflicts of inter- 
est so as to resolve them in a 
larger, common interest are the 
conditions for democracy and 
its reward. To paraphrase 
Churchill, no better system has 
ever been devised. 

But it isn’t working well 
enough to satisfy its citizens, 
despite the sense of triumph at 
its spread to many who were 
deprived and yearned for the 
chance to make up their own 
min ds. What is wrong? 

LONDON — The Times' leader 
on the Paris fire says: “The les- 
son taught in the result ought to 

be too plain to require to be 
inculcated. To crowd a number 
of persons into a confined space 
for any purpose is always to in- 
cur risk which can be guarded 
against only by provision of exits 
so placed and constructed so as 
to allow them to all get out rap- 
idly under all difficulties, includ- 
ing those created by panic.” 

upon as a great democratic lead- 
er, but of late has fallen away 
from his progressive policies. 
Chang Tso-lin started his career 
as a bandit and has been allied 
with Dr. Sun Yat Sen, foe Pres- 
ident of Southern China- 

1947: Tories Decried 

1922: China Warlords 

LONDON — Hostilities be- 
tween the rival war lords in 
Northern China are at an end. 
Marshal Chang Tso-lin has fled 
to Mukden and general Wu Pei- 
fix is in control of Peking, fol- 
lowing the battle which resulted 
in foe turning of the right flank 
and foe complete d6b£de of the 
army of the Manchurian leader. 
General Wu Pei-fu was looked 

JARROW — Great Britain’s 
first by-election since foe Feb- 
ruary economic crisis is being 
held in this grimy, industrial 
town on the River Tyne which 
ten years ago symbolized the 
worst in British depression. Jar- 
row’s pre-war history, that of a 
shipbuilding town literally 
starving to death with no ships 
to build Mid no other work to be 
had. is the dominating note of 

the campaign. In thick Tyneside 
brogue, men who had taken part £ 
in the 1 936 hunger march stand 
up on labor party platforms and 
demand; “Did Winston 
Churchill or foe Tories ever do 
anything for us in 1936?” 




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PAGE 91 



U.S. Double Standards 
Hurt Ordinary People 

f . By Robert Kuttner 

W «fSPN - Thanks 

to the Public Citizen Health 
Research Group, it recently came 
10 light that U.S. medical re- 
Searchers are still turning Third 
worm populations into human 
|»“nea pigs, using ethical stan- 
Jards fliai are unacceptable in the 
United States. 

> The studies, on 12,000 pree- 

tiant women with HIV inthe Ivo^ 

Coast, Tanzania, Uganda, 23m- 
bahwe and other African coun- 
ties, are financed by the Centers 
for Disease Control and the Na- 
tional Institutes of Health. 

* The standard U.S. treatment to 
reduce mother-child HIV trans- 
mission is use of the drug AZT 
during the final weeks of preg- 
nancy. This reduces by about two- 
fhirds the number of infants who 
contract HIV from their mothers. 

• But in the Third World exper- 
iments, conducted under the aus- 
pices of U.S. researchers, target 
populations are divided into sev- 
eral groups. Some receive vari- 
ations on the AZT treatment Oth- 
ers, get a placebo. This allows 
scientists to measure the efficacy 
of the different treatment 
strategies against a “control 
group” that gets no medicine. 

■ The Health Research Group 
does not object to tbe variations in 
the treatment, only to .the 
placebos. According to Dr. Peter 
Lurie, who amassed tbe data for 
the Health Research Group, this 
unnecessary “double blind” 

Study will result in about 1.000 
more HIV-positive children, vir- 
tually all' of whom will die grue- 
some deaths. But the Centers for 
Disease Control takes the position 
that this approach is ethically de- 
fensible. because in tbe absence of 
the research, none of the target 
group would benefit 
Still, the fact remains that this 
study violates ethical standards 
that are strictly enforced in the 
. United States: Treatments known 
J to be effective are not to be denied 
• human subjects for the sake of 
“research .’ 1 Nobody contends 
that these research protocols 
would have been approved had 
the subjects been Americans. That 
is why they had to be conducted 
bn Africans. 

In a letter to Secretary of Health 
and Human Services Donna 
Shalala, who is responsible for tbe 
Centers for Disease Control, foe 
Health Research Group called foe 

i m ktlZ4i r.h-ViV. r.:. . ,rs 

study a violation of the Nurem- 
berg Codq adopted in response to 
tbe practices of Nazi doctors. Eh. 
Shalala has not responded. 

The evident double standard for 
medical research on human sub- 
jects raises a much larger question 
— the proper relation between 
standards that die United States 
values at home and those it uses in 
the rest of the world. This issue 
becomes more pressing as com- 
merce becomes more global. 

In general, the U.S. govern- 
ment seeks to impose U.S. stan- 
dards on the rest of the world 
where the interests of American 
property owners are at stake, but 
takes a far more relaxed position 
where other people’s interests are 

For example. American diplo- 
mats are extremely upset that 
China does not honor U.S. laws 
regarding intellectual property. If 
trade negotiations break down, it 
could well be over Chinese piracy 
of U.S. patents and copyrights. 
But China's treatment of workers 
who produce for export to the U.S. 
marker, incl uding those employed 
by subsidiaries or partners of U S. 
companies, is not an issue in the 
trade negotiations; nor is foe use 
of child labor or prison labor; nor 
is the displacement of U.S. work- 
ers because of substandard 
Chinese labor practices. 

By the same token, protecting 
foe parent interests of U.S. phar- 
maceutical companies was key to 
tbe diplomatic breakthrough that 
set up foe World Trade Organi- 
zation. Tbe property rights of drug 
companies are protected overseas, 
but the products of those same 
drug companies are routinely ex- 
ported for uses not approved in the 
United Stares. And they are some- 
times tested on human subjects in 
ways that violate U.S. standards. 

So there is really a double, 
double standard ar work here. 

It ’s bad enough that there is one 
standard for iTS.-sponsored re- 
search on Americans and another 
where foe subjects are desperately 
poor Africans. But the broader 
double standard is tbe enforce- 
ment by foe U.S. government of 
one set of global rules for power- 
ful American corporations, 
wherever they operate, and far 
weaker rules far ordinary citizens 
of foe planet, both foreign and 

Washington Post Writers Group. 




87 kALmlbrSa (Bahtaurr). Ca* Sptficur. 

The three stages of modem WaU. Street 

Driven Out by Crime 
From a Beloved Place 

By Sam Dyer 


Sex and the Military 

Regarding “ Conduct Unbe- 
coming? Sex Code Puts a Strain on 
US. Military ” (April 29): 

As a former Australian Air 
Force officer, I must say that this 
is most shoddng article I have 
-read for many years. If foe case of 
Lieutenant Colonel Karen Tew. 
who was dismissed after pleading 
guilty to adultery, is typical of 
military justice in foe United 
States, the U.S. Air Force has se- 
rious problems. Rather than Col- 
onel Tew feeling shame and hu- 
miliation for her very human 
behavior, it is foe military that 
'should be experiencing those feel- 



The U.S. Air Force is now on a 
sex crusade? After this same air 
force brushes aside foe criminal 
negligence of foe commanders 
who after Beirut failed to protect 
their men from car bombings in 

Saudi Arabia? This isn't “adoles- 
cent”; this is malfeasance. If this 
air force can't get its nose out of 
bedrooms and put its focus on foe 
dangers to the men and women 
serving the United States, then 
perhaps that’s foe {dace for foe 
biggest budget cut of all. 



So U.S. tax dollars are support- 
ing military courts that ]xy into tbe 
private sex lives of individuals 
whose offenses would be laughed 
out of a civilian courtroom. And, if 
convicted, these soldiers lose their 
jobs, pension, benefits and some- 
times their liberty. 

Surely President Bill Clinton, 
the commander in chief of foe 
armed forces — who certainly 
should be sympafoetic to their 
plight — could put a stop to this 

Lucca, Italy. 

Regarding ** Fighting Human 
Nature Isn’t the Army’s Mission" 

(Opinion, April 25) by Richard 

Mr. Cohen makes clear that he 
takes a very dim view of women 
tn foe military. For him, women 
bring only problems in the form of 
one big motel romp of hormones, 
problems for which men can 
hardly be held accountable. 

When Mr. Cohen says that the 
“natural aggression'’ of men is a 
prerequisite for the nriUtaiy, his 
argument falls apart. Such aggres- 
sion can be valuable only when it is 
tempered by discipline. Obviously, 
foe problems at foe Aberdeen 
Proving Ground, where women 
say they were coerced or forced 
into sex with superiors, reflect a 
serious breakdown in discipline. 

But Mr. Cohen seems to think 
that foe problem did not exist be- 
fore women came along and 
therefore women are foe problem. 
It does not seem to have occurred 
to him foat something might be 
wrong with foe system. 



slightly built leer 
pulled the knife out of his 
as we met on aquiez street several 
blocks from my home in the Cap- 
itol Hill section on the sunny 
morning of March 29. My 9-year- 
old son and a friend had scooted a 
little way ahead of me, and my 
German shepherd was on a leash 
by my side. 

1 was cm. Park Street, a beau- 
tiful, secluded street with unique 


architecture. It was eaty to be lulled 
in foe warmth and friendliness of 
Capitol HR!, in tbe center of foe 
American capital not far from foe 
While House. 

With certain images, no words 
are necessary. When I saw foe 
knife come out, 1 knew what was 
going to happen. I ran. My old dog 
was holding me back, so I dropped 
his leash, and be ran away. 

I stayed in foe street, thinking I 
might be safest there because 1 
could get a parked car between me 
and my attacker. That might have 
been true if there had been only 
one attacker. Instead, my flight 
was cut off by another teenager. 

The second assailant also bran- 
dished a knif e. I fell back against a 
car as he slashed at the air. In- 
stinctively, 1 raised my arms to 
fend off the blows, sustaining a 
deep slash in my left arm and a 
smaller cut in my palm. Then ray 
assailant stabbed me in tbe groin, 
thrusting foe blade in deep. 
Strangely, it did not hurt. 

While the taller attacker 
stabbed me. his accomplice 
smoothly extracted my wallet 
from my back pockeL 
But my assailants weren't fin- 
ished with me yeL The talleryouth 
giaminftfi my face hard with his 
fist. The knife was still in his 
band, and it left an inch-long cut 
near tbe comer of my eye. Then, 
they were gone. Tbe mayhem had 
taken about 30 seconds. 

I struggled over to a wall and 
sat down to assess foe damage. I 
knew I had been badly hurt. I was 
bleeding, but I could feel my toes 
and hand. That was a good sign. 

The police arrived within sev- 
eral minutes. 1 gave them a de- 
scription of my assailants. A res- 
ident later would tell officers how 
my attackers sauntered away, 
smiling. He said he had seen them 

enter an alley, and when the police 
searched there, they found a knife 
and my wallet, less $21 in cash, j 

After what seemed like am 
eternity, a fire truck arrived. Thcj 
fire fighters jacked me up, laid mej 
on the sidewalk and then cut my' 
clothing away. 

I could see the muscle in myj 
lacerated aim. As I lay naked im 
front of two dozen strangers, H 
could feel foe warmth of thex 
spring day. We waited for thej 
ambulance to the hospital. -1 

After four hours of surgety be- 
cause of a punctured artery in my! 
leg, I was out of danger. Five daysi 
later. I was out of the hospital. - j 

The police responded to this} 
case by assigning one of foein 
most seasoned detectives.' Hal 
seems to t hink an arrest and con -3 
vied on are likely. But foe demor-s 
alizati on and lack of resources! 
that hamper the larger fightt 
against crime in the District are> 
well known. We need foe kind of 
strong policies that have reduced' 
crime in New York City by 50* 
percent. > 

And that’s nor all we must do.) 
Youngsters in Washington seemj 
to be making a conscious choice) 
to embark on careers of crime ini 
response to peer pressure, in foe> 
absence of adult involvement I 

American society is not show-j 
ing them positive alternatives andi 
models for behavior. We have to> 
protect lads to keep them from 
going into a life of crime. Oth- 
erwise, we are all lost The prob- 
lem is complex, but not insol- 

My wife and I moved to Capitoh 
Hill by choice. We wanted ar 
neighborhood where we would/ 
know our neighbors and could] 
counton them, and we found that) 
But even before I was assaulted; 
last month, we had become soi 
alarmed by crime in the neigh-j 
boibood that we had bought ai 
bouse jn the Northwest section oft 
foe District and planned to move! 
there. I had delayed, though* be-T 
cause foe Hill was home to me. ’ 

Now, however, we are going tor 
move as soon as 1 am well enoughs 
We are not fleeing the Hill — wef 
are being driven from die neighs 
borbood we love. 

The writer, an architect, has \ 
lived on Capitol Hill for 17 years s. 
He contributed this comment td> 
The Washington Post. j 




On Wednesday, May 28, 1997, 
as the 50th anniversary cf The Marshall Plan approaches, 
the International Herald Tribune tcill publish a Special Report on 

The Marshall Plan 
and its Legacy 

Among the distinguished contributors mill be: 

■ Stephen E Ambrose, presidential historian and best-selling author, will provide a look 
back at the plan - its birth and the motives, vision and politics that drove one of the 
century's boldest moves. 

■ Josef Joffe, the widely respected foreign editor and columnist of the Suddeufcche 
ZeHung, will look back at the Plan's impact on a defeated Germany, hc*v4t may have 
helped shape the post-war personality of its people and the nation itself, what endures 
today and whether the same concepts that made such movements necessary 50 years 
ago ‘can work today in the east and elsewhere. 

■ Michel Crazier, French sociologist and author, who studied at Harvard as a young 
man under Marshall Plan funding, will bring alive both the reality of the immediate 
post-war years in France and central Europe as the continent struggled for momentum 
and the perspective of Europe 50 years bier. . 

■ U.S. Secretary of Stale Madeleine Albright will write about what she sees as the ^ 
Marshall Plan's relevance today, as governments seek a new departure for post-cold 
war Europe. 

■ Art Budiwdd, humorist and columnist, who chronicled the high-jinks and law-jinks of 
post-war Paris for the International Herald Tribune for so many years, will remind us at 
What it was lib there in the late 1 940s and early 1950s when Ameriains resumed 
their love affair with France and poured dollars, movies and lots ot other things into 

the continent. 

■ Flora lewis, the distinguished former 

upon the truly revolutionary aspect of the Plan, which was not really the ability to 
finance if but rather the imposition of cooperation, the forcing ot a new way ot 
‘ working together upon countries and markets. 

■ Joseoh fifcheft, the IHTs veteran political correspondent, will take us trough the 
■S5E grand aspects of ihese amadgtt ymn. 

were extraordinary, everything from apple orchards in France to the expansion of U.S. 

" covert action to penetrate French Communist trade unions. 

J^Tald to ©ochcrfber, how that era provided a glimpse of cftti^thcit^yprevapl 
& anyone European in particular, Jean Monnet, sought totumth^e 
jfojsarateeffbrls and att&As into lasting political achievements and European 

institutions.^ advertidwrin this Special Report, please contort Bill Mahder in 

^^ 0 ^ 2)4143 93 7 sTfa^-l) 41 43 92 13 or e-mail: supplemerUs@ihtcom. 


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(Un) dressing for Success at Cannes 

How Starlets Created Fashions Pact With Fame 

By Suzy Menkes 

International Herald Tribune 

P ARIS — Uplifted 
bosoms, pouting lips, 
a palm-strewn prom- 
enade and a horde of 
paparazzi — even as the 
Cannes International Him 
Festival turns 50, die image of 
the starlet is indelible. 

And that curvaceous figure, 
posing on the Croisette beside 
die breast-shaped domes of 
the Carlton Hotel, has had a 
lasting influence on fashion. 
For tins season ’s silver jubilee 
in Cannes also marks 50 years 
of celebrity dressing. 

Make that undressing. 
Madonna in her ice-cream - 
cone shaped bra and corset 
was one of the many soul sis- 
ters of Brigitte Bardot in her 
bikini, the film festival starlet 
of 1953. Think of Liz Hurley 
in the infamous barely-there 
safety-pin dress that landed 
her a million -dollar cosmetic 
contract and a made-for-TV 
movie; and of all those Hol- 
lywood hopefuls wbo this 
year showed their lightly- 
veiled nipples (shock! hor- 
ror!) on the prime-time show- 
ing of the Academy Awards. 

Cannes was bom with tele- 
vision, and celeb dressing has 
gone hand in glove-tight 
dress with the small screen. 

Hollywood, in its heyday, 
had a powerful influence on 
fashion, but then the studios 
were in absolute control. 

The costume designers of 
the silver screen era also fab- 
ricated die allure of the stars’ 
off-duty wardrobes. Marlene 
Dietrich’s hourglass sheaths 
were just an illusion of se- 
duction created on firm foun- 
dations by the costume de- 
signer Travis Banton. 

“You can't even show a 
baby 's bare behind out here,' ' 
said Jean Harlow, when the 
studio frowned on her slinky 
creations by the legendary 
costumer Adrian. 

Cut to 1997, when Liz met 
Liz (Hurley and Taylor). The 
perennial wannabe feted the 
legendary star’s 65th birthday 
wearing a transparent black 
lace outfit, offering a bold 

Most of the clingy dresses 
worn for this year’s Oscar 
parties appealed to the basic 
instincts of the paparazzi. 
Following Sharon Stone’s 
cinematic example, the stars 

had abandoned underwear. 

Celebrity undressing 
provides a lot of harmless fun 
— just as h did in Cannes’s 
high noon when Bardot's 
reign in the 1950s was chal- 

an trio of Claudia CarJmale, 
Gina Lollobrigida and Sophia 
Loren. They all provided an 
antidote to the hearth-and- 
home coziness of die postwar 
years, when Hollywood had 
replaced screen goddesses 
with the girl next door. 

Then came a moment — 
date it around 1988 — when 
the world suddenly dis- 
covered a new breed of silent 
movie stars, who had a love 
affair with the camera lens 
worthy of Marilyn Monroe. 
Enter the super-models. 

F ROM that time stems 
the link between fash- 
ion and fame that now 
has become a com- 
mercial pact The models be- 
came celebrities, often ro- 
mantically linked to stars of 
the entertainment world, to 
add spice to showbiz. 

When it comes to showing 
off clothes, there is usually no 
contest between the profes- 

sional model and the actress 
(hence the soggy silhouette of 
Susan Sarandon poured into a 
panne velvet dress at the 
Academy Awards). But if the 
look works — as in the sheer 
dress worn by the American 
MTV presenter Jenny Mc- 
Carthy, or Nicole Kidman’s 
Chinese cheongsam dress 
from Dior — the effect is 

International fashion 
houses were swift to see the 
advantage of stars endorsing 
their designs. First Giorgio 
Armani, then Gianni Versace, 
swiftly followed by Dolce & 
Gabbana, Prada, John Galli- 
ano et al have hastened to 
dress male and female stars. 

Isabelle Adjani, president 
of the jury far the 50th an- 
niversary, will be dressed by 
Dior, whose designer, John 
Galliano, is the current 
celebrity darling. Adjani is 
slated to wear three Dior 
haute couture outfits and six 
from the recently-shown fall/ 
winter ready-to-wear collec- 
tion. Like most fashioa 
houses, Dior faxes the facts to 
the world's media. 

At its best, this symbiotic 
relationship between the fa- 
mous and fashion adds luster 
to both — as long as the buy- 
ing public can see through 
celebrity dressing. 

But lured by the screen 
sirens and dazzled by their 
fame, are designers in danger 
of creating images that are as 
remote, in their way, as the 
sable-trimmed gown worn by 
Greta Garbo in “Camille’’? 

The sheer glamour of the 
Oscar gowns, often plucked 
straight from the catwalk, 
give out a message that fash- 
ion is just a spectator sport. 

Look around the streets, 
the swanky hotels or even the 
stores, and see-through 
clothes are nowhere to be 
seen. Or maybe those trans- 
parent laces and chiffons 
have been transformed with 
underslips and linings. 

Sheer dressing: Jenny McCarthy at 1997 Oscar ceremony; designs by Dolce & Gabbana, left, and RichardTyler. 


The Music and the Man 

By Brian Newbould. 465 pages. $39.95. 
University of California Press. 
Reviewed by James R. Oestreich 

T HE term kept coming to mind long 
before Brian Newbould used it 
“Verisimilitude is not necessarily the 
same as musicality, where ‘echoes’ are 
concerned,” Newbould writes of 
Schubert's imaginative treatment of the 
word “Widerhall” (“echo”) in the late, 
expansive sang “The Shepherd oa the 
Rock. ' ' And when it comes to musicality, 
Newbould knows whereof be speaks. 

For musicians, the terra “musical- 
ity” carries a range of meanings that the 
unabridged Webster barely touches 
with “musicalness.” It suggests a level 
of communicativeness that for a com- 
poser, yes. transcends verisimilitude. 
For a performer, it transcends the notes 
on a page, body language and even 
musical technique. It certainly tran- 
scends words, so it may seem an odd 
term to apply to a book. 

But Newbould, who teaches at the 
University of Hull in England, writes 
throughout as a fine musician, able to 
convey the musical essence of a song or 
movement in a deft turn of phrase. It is a 
remarkable feat, even from an author who 
has already shown his musical erudition 
and understanding in a variety of ways. 

This book expands on an earlier study 
of the great Viennese composer. 
“Schubert and the Symphony: A New 
Perspective” of 1992. And that per- 
spective drew in part, on Newbould 's 
painstaking and fascinating completions 
of Schubert symphonies: not only the 
“Unfinished” B minor (No. 8) but also 
the more fragmentary E major (No. 7) 
and D major (No. 10). Although those 
efforts are not convincing in every detail 
Newbould seems to have burrowed as 
far into the workings of Schubert’s men- 
tal and compositional processes as any- 
one could hope to from this distance. 
And that impression holds here as 


title. Relatively little is known of the 
composer’s life. The scant document- 
ation, as Newbould writes, “comprises 
an ill-assorted and far from complete set 
of jigsaw jpieces.' ’ 

What is known be provides effi- 
ciently and economically. What is not 
known, like the nature of Schubert’s 
sexual orientation, which has attracted 
so much speculation of late, detains him 

“ Since no one has yet demonstrated 
that there is an identifiably gay way of 
proportioning a sonata movement, 
structuring a cadence, arguing a fugue 
or handling a symphony orchestra.” he 
writes, “the question of sexuality would 
seem to have little bearing on our con- 
sideration of Schubert's music.” 

This consideration obviously lies 

closest to Newbould’s heart. Here he 
can be revelatory and is almost always 
interesting. Most writing about music 
sends a reader scurrying to the CD play- 
er, sooner rather than latex, to hear the 
"real” thing. But with varied pacing 
and focus as well as valuable insights, 
Newbould holds interest even through 
long chapters oa individual songs. 

His knowledge not only of Schubert’s ; 
output but also of anything pertinent that 
came before proves astonishingly com - ' 
prehensive. So be is able to place 
Schubert’s achievements and his “way 
of plucking nuclear principles from the 
repertoire ail around him in bis teen-age 
years” in a rich historical context 

James R. Oestreich is on the staff of 
The New York Times. 


By Robert Byrne 

M ICHAEL Krasenkov beat Tony 
Miles in Round 3 in the New York 
Open Tournament. 

Miles has been a devotee of 4...a6 in 
the Slav Defense for some time. Its im- 
mediate threat is to take with 5...dc and 
keep the purloined pawn with 6...b5. 

Strategically, Black wants to see a 
stabilization of the center with 5 cd cd or 
to elicit the advance. 5 c5, after which he 
will aim for counterattack with ...e5. 

The bluntest way to crimp Black’s 
plans is 5 a4, yet H gives White a weak 
square at b4. 

With 1 1 a5, Krasenkov showed that 
he was no slave to two-bishop mania. If 
U..J4c4 12Qc4 Be6?.apawn is lost to 
the fork 13 Qb4, while l2...Nd7 leaves 
White with an advantage in terrain. 

Miles changed his mind and got the 
other bishop with T2...Nf5 13 Bg3 Ng3, 
but Krasenkov recaptured with 14 fg!?, 
opening the f file for attack. 

One consequence was that 14...e57 


a buttock or even much fresh, 
except those stars of the big 
screen — as seen on the small 
one — that brought die first 
flickering images of stardom 
from Cannes 50 years ago. 


in Paris 




8, rue de Sevres. 

Paris OKI 

Tel: 01 42 22 18 44 

ations both for Schubert's abandonment 
of so many works and for his occasional 
continuation down a blind alley. He 
even displays some of what he calls 
Schubert’s “tripping volubility.” 

“ Where another composer might well 
call a halt in frustration,” Newbould 
writes of “Die Buergschaft” (“The 
Guarantee”), a Gluckian opera on a clas- 
sical theme begun in 18 16 and ultimately 
left incomplete, “Schubert, undoubtedly 
one of the most fluent and fast-working 
purveyors of notes in the history of mu- 
sic, counted the cost of continuation 
more cheaply and saw in it the oppor- 
tunity to exercise his technique of mu- 
sical construction (in the widest sense) 
within a large-scale and ’real' context It 
is arguable that we owe it to his youthful 
energy and — let’s be honest — his not 
invariably engaged powers of self-crit- 
icism that he was able to retain his flu- 
ency while sharpening his technique to 
produce such a spate of masterpieces in 
the las few yeans of his life.” 

Newbould is quick to point out the 
precedence given to music in his sub- 

Ng5! Qg5 17 Qf7 Kh8 18 Qe8 Bf8 19 
Rf8 Kg7 20 Rf7 Kh6 21 Qh8! 

With 18 Ne4 and 19 Ne5, Krasenkov 
maneuvered simultaneously on both 
sides of the board with his loiights. 




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Position after 41... Kffi 

Miles surely did not imagine that 
after 19...Qb6, Krasenkov was going to 
exchange off his last bishop for a knight" 
with 20 Bd5! cd to demonstrate knight* 
power with 21 Nd6! ^ 

The threats were 22 Nc8 followed byi 
the fork 23 Nd7 as well as 22 Ndf7.» 
Miles solved the immediate problem* 
with 21..3e5 22 de, but he was facing * 
an enemy knight far stronger than his* 
remaining bishop. ; 

He might have considered 22...d4!?- 
23 Nf7!? Rf7 24 Rf7 Kf7 25 Rfl Ke8 26’ 
Qf8 Kd7 27 Rcl Qb4 28 Qf7 Kd8 29; 
Qg8 Kd7 30 Qh7 Kd8. j 

It is risky for Black, but it may not* 
give White more than a perpetual check. ’ 
Miles tried 22...Qb2 23 Qb2 Rb2, but' 
after 24 Rfcl Bd7 25 Ra6, Krasenkov' 
threatened to double rooks on the sev-^ 
enth rank. ^ 

After 25...Rfb8 26 Ra7 Rbl 27 Rbl* 
Rbl 28 KfZ, Miles got a pair of rooks? 
off, and after 28...Bb5, he threatened 1 ’ < 
29...RH mate, but after 29 g4, the blacka^ 
king was dangerously hemmed in. ■ ' 

The winning move was 42 g6l 

TT Ufa Al 4 

43...Kg8, then 44 Rg7 Kf8 45 Rg6 and* 
the white h pawn cannot be stopped. I 
After 46 h7. Miles gave up, unable to? 
halt the queening of the h pawn. * 



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TUESDAY, MAY 6, 1997 

PAGE 11 

Insider-Trading Inquiry 
Targets Germany’s SAP 

Case Could Drag Down a Young High-Flier 

By John Schmid 

International Herald Tribune 

. FRANKFURT — German authorities said 
MOMay that they had opened their widest 
msWCT-tmling investigation to date against 

a ' 7 uro P e s leading software company 

and one of the few successful and innovative 

• German information technology firms. 

Mote than 100 investors, managers and 
board members of SAP AG, have Seen tar- 
geted in the investigation, officials said. 

The move is a “slap in the face” to Ger- 
many's many efforts to modernize its markets 
^ and lure international investors to Germany, 
said Holger Schmieding, a Frankfurt-based 
financial analyst at Merrill Lynch. 

The investigation is also a black eye for 
SAP, which specializes in software used for 
running businesses. The company's breath- 
taking growth in recent years has make it the 
only high-growth technology stock in Ger- 
, many’s 30-share DAX blue-chip stock index, 
which is dominated by banking, chemical and 
auto companies. 

Precisely because SAP ranks as erne of 
Germany* s most future-oriented communes 
1 and is Europe's biggest and most profitable 
software maker, few would have expected it 
to become the object of a scandal that most 
associate with the business cultures of es- 
tablished industrial companies. 

* Chancellor Helmut KoU and the Microsoft 

Corp. founder. Bill Gates, have both visited 
SAP's headquarters in rural Walldorf to laud 
the company as the only non-American play- 
er among (he world's top five software 

Although Frankfurt is Europe's second 
most active stock market, behind Loudon, 
only in recent yearn has it taken steps to shake 
its image of lax surveillance and casual reg- 
ulatory compliance. 

“It ceases at a most inconvenient time for 
our image internationally," Mr. Schmieding 
said of the investigation. 

In Germany, where sensitivities about in- 
sider trading are not yet as developed as on 
Wall Street or in London, analysts said the 
case might not cause as much of a stir. 

But by German standards, the breadth of 
the investigation is unprecedented. The num- 
ber of individuals in the inquiry rivals the size 
of Frankfurt's 100-member staff at the in- 
sider- trading watchdog agency, and the in- 
vestigation could go on for a year, according 
to die agency, which began operations at the 
start of 1995. 

An agency spokesman predicted that the 
investigation would be narrowed over time. 

Shares of SAP, often regarded as a darling 
of European technology investors, 
plummeted 5 percent in panicky early trading 
Monday after the Handelsblatt business news- 

See SAP, Page 13 

Intel to Introduce a Souped-Up Pentium Chip 

By Paul Floren 

Special to die Herald Tribune 

Intel Carp., , trying, to preserve its 
status as the world's leading chipmaker, 
null introduce a faster version mis week 
of its best-selling Pentium line of mi- 
croprocessor for personal computers. 

Intel said the new Feodum II pro- 
cessor, whose iwmiediate target is busi- 
ness users, was intended to provide easier 

soandftfdeo and 

. ages, such as videoconferencing, as well 
as speedier access to the Internet's Wodd 
Wide Web video network. 

The Pentium IL which win be un- 
veiled Wednesday in New York, Is 

based on Intel's Pentium Pro, a power- 
ful chip used in personal computers for 

But it also incorporates the multi- 
media-enhancing MMX technology 
that Intel recently added to its Pentium 
chips, used primarily in. consumer PCs. 

Analysts and usere.haye been await- 
ing the release dflhe irew generation of 
high-speed microprocessor chips, and 
industry observers expect the new Pen- 
tium to generate a surge in sales of PC 
models costing $3,000 or more. 

The chip, which runs at speeds of as 
much as 300 megahertz, has been in- 
tentionally housed in a cartridge that is 
not entirely compatible with existing 
hardware. By changing the way its pro- 

cessors connect with the rest of a per- 
sonal computer, Intel is trying to dis- 
courage use of chips made by American 
Micro Devices and Cyrix Carp. These 
companies typically wait for Intel to 
create a new line of processors, then 
engineer their own versions. Became 
AMD and Cyrix do not incur die heavy 
development costs shouldered by Intel, 
they can sell their chips for less. 

The first Pentium II chips will have 
7J5 milli on transistors, compared with 
53 million on the c urr ent top-of-the- 
line Pentium Pros, and will run at a 
speed of 233 megahertz, compared with 
200 on the fastest processors now avail- 
able. Microprocessors are the chips that 
do the calcmations that arc at the heart of 

Mediobanca’s Stature 
And Stock Take a Fall 

Failed Merger Is ‘Grave Blow 9 to Image 


Hie headquarters of the software maker SAP in Walldorf. 


Intel’s new strategy will split its lines 
between the Pentium H and its existing 
Pentium and Pentium Pro chips, both of 
which have MMX, its multimedia tech- 
nology. The Pentium Us will be aimed at 
businesses, while die MMX chips will 
be targeted at home users. 

Analysts are skeptical about the 
longevity of Intel's present strategy, 
however. Rana Mainee, director of con- 
sulting services at International Data 
Group PLC, said be believed that Intel 
eventually' would return to one platform 
based mi Pentium U innovations. 

“Yon will see the Pentium II replace 

See INTEL, Page 12 

Compiled p/Owr Staff From Dhpotdiet 

MILAN — Mediobanca SpA shares 
fell Monday after a merger engineered 
by the Milan-based investment bank to 
create Italy’s largest fashion and clothing 
company collapsed over the weekend. 

Shares of Holding di Parteeipazioni 
Industrial! SpA, or HPL tumbled but 
Mansotto & Figli SpA’s stock gained 
slightly after the two companies called 
off their planned merger, which would 
have grouped the Hugo Boss, Marzono 
and Hla clothing brand names, among 

For Mediobanca, the breakdown of 
the deal, which would have created a $5 
billion-a-year fashion powerhouse, sig- 
nals hs dwindling control over Italy's 
industrial elite, analysts said, helping 
hammer its stock price. 

“It’s a grave blow to Mediobanca's 
image,' ' said Angelo Di Cresce, head of 
equity sales at InterSIM. “The fact that 
tire Maizoaos are a traditional ally of the 
bank is even more serious — it shows 
the bank doesn’t have absolute control 
of the families in its orbit.’’ 

Mediobanca officials were not avail- 
able for comment. 

Both HPI and Marzotto should do 
well on their own, analysts said, even if 
they would have been stronger united 
Many expect HPI to lode for another 
partner in the fashion industry, using the 
1 trillion lire ($586 million) in cash 
listed on its bodes. 

“It’s a lost opportunity, not really a 
disaster," said Antonello Di Masdo. an 
analyst at Nnsa SIM. 

Another analyst said the collapse of 
tire deal was “good news for Maizotto 
and bad news for HPI," adding that the 
Maizotto family had decided against 
diluting its control and effectively ab- 
dicating power to Mediobanca and its 
close ally, Hat SpA. 

A third analyst, Luca Coloso of Sella 
Asset Management, said HPI had lost out 
on an opportunity, saying, “HPI would 
have benefited from being merged with a 
real industrial group instead of remain- 
ing just a holding company, which al- 
ways trade at a discount" 

Mediobanca shares finished down 425 
hie, at 10,175. HPI shares fell 65 to 863, 
while Maizotto stock rose 9 to 12,417. 

Mediobanca, through a series of 
cross-shareholdings with Italy’s leading 

nongovernment banks and industrial gi- 
ants, baa m asTernfl fo dftH many of tile 
largest turnarounds and consolidations 
in recent Italian corporate history. 

It oversaw Olivetti SpA's recent cap- 
ital increase and the 1993 rescue of the 
Ferruzzi conglomerate. It also has major 
stakes in Italy’s biggest company. Hat 
SpA; its largest insurer, Assicurazioni 
Generali SpA, and one of its top banks. 
Banca Commerdale Italians SpA. 

Many large Italian companies, includ- 
ing Marzotto, are represented on Me- 
diobanca’s board. One of its top bankers, 
Manrizio Romiti, is the son of the chair- 
man of Fiat and was pegged to become 
chief executive of the Marzotto-HPL 

The merger’s collapse comes a year 
and a half after investors and regulators 
scuttled Mediobanca's “Super Gem- 
ma" project, which would have merged 
Gemma with Ferruzzi Finanziaria SpA 
and the Hat chemical subsidiary Sola. It 
would have created Italy’s second- 
laigest private company, just behind 
Fiat. Geinina later spun off HPI. 

Giannino Marzotto, one of seven 
Marzotto brothers in the sixth gener- 
ation to run tire company, told an Italian 
news agency that the family “was in- 
terested in an industrial operation based 
on tire textile industry, but when it be- 
came clear the operation would be sub- 
ordinated to developments of a more 
financial character, there were fewer 
reasons for tire affair." 

Maizotto officials said family mem- 
bers feared losing control over the com- 
pany they founded in tire 1830s. Under 
terms of the deal, tire Maizottos would 
have controlled about 12 percent of the 
new company, less than half the stake 
held by Mediobanca and Fiat together. 

HPI controls companies such as the 
sport swea r maker Hla Holdings SpA 
and GFT SpA, a Turin-based manu- 
facturer of clothes for such designers as 
Giorgio Armani, Joseph Abboud and 
Gianfranco Ferre. HPI also controls 
RCS Editor!, publisher of the Coni ere 
della Sera newspaper. 

Maizotto would have brought to the 
merged company the German mens- 
wear maker Hugo Boss, tire world's 
largest wool-weaving operations and 
companies dial produce clothes for 
Ferre, Missoni, Marlboro Classics and 
other designers. ( Bloomberg , Reuters) 

Thinking Ahead /Commentary 



Is Blair Leading a Continental Drift? 

By Reginald Dale 

International Herald Tribune 

W ASHINGTON — Anyone who can remember 
Britain in tire late 1970s may be forgiven a 
quiver of nervousness as the country comes 
again under the control of a Labour gov- 
ernment. When Labour last held office, Britain was heading 
rapidly toward economic, financial and political decline, a 
captive of excessively powerful and selfish labor unions. 
Britain’s prosperity today has been built on the reversal 

■1 of traditional Labour policies — and tire taming of tire concmredty the nudities of the C 
unions — that began with tire victory of the Coaaseryafives the high degree of employment 
undo- Marearet Thatcher in 1979. . couragesem 

under Margaret Thatcher m 1979. 

As a result, Tony Blair, the new , , , 

prime minister, has inherited one of In some ways, be lOOfcS 
the freest economies in the world, an UWonMn 

economy that in many ways time- more a 

txons more like that of tire United Christian Democrat 

States than those of Britain's partners' 

in the European Union. . . . 

But despite his commitment to seemingly Thatenente 
policies during the campaign, it is not at all sure that tins is 
the kind of Britain that Mr. Blair actually wants. 

Mr. Blair's intentions have been obscured by his correct 
calculation that to win the election he had to silence his 
party's remaining militants and offer reassuring gener- 
alities rather than precise policy prescriptions that could be 
successfully attacked by nis opponents. 

Mr. Blair’s repeated promises that 4 New labour .has 

no mtenricn of returning to the 1970s can probably be taken 

on trust. He does, after all, want to be more than a one^enn 

JjUtiKMgS^ unions stiU play a big role in financing the 
Labour Party, and can now expect to have a louder voice in 
government, they have much less power than they used to 
Zl. and Mr. Blair wants to keep it that way. 

But that does not mean New Ubour's econ^ic ^and 
social policy will simply be' a hte version of those of 

their conservative predecessors, as some have suggested. 

Indeed, in some ways, Mr. Blair looks less like a British 
politician than a Continental Christian Democrat — a 
believer both in free markets and in the need to temper 
them in the interests of compassion and social cohesion. 

Such an approach woald imply that tire Blair government 
will he more committed to government intervention than 
.the Conservatives, who believed that social progress could 
best be achieved by diminishing state interference. 

Labour leaders are said to have looked at tire policies of 
tile Christian Democratic Party in Germany and been 
concerned by tire rigidities of tire German labor market and 
the high degree of employment protection, which dis- 
courages employers from hiring new 
™“ "• — — 1 personnel 
S, he looks But Mr. Blair has given two dues 

that be will move closer to Con- 
fiUropean tinentai practice. IBs government is 

iniwfat committed to introducing a minimum 

wage and signing on to the HU’S 

Social Protocol, providing for har- 
monized social policies. 

Both are anathema to Conservatives, though not of 
course to Christian Democrats on the Continent Both also, 
however, involve serious risks for Britain. 

A study last year by UBS Ltd. of London concluded that 
a British minimum wage, at whatever level, would stim- 
ulate inflation, hinder economic growth by raising in- 
dustrial costs and result in fewer jobs in the private sector. 

The Social Protocol, from which former Prime Mmister 
John Major seemed an opt-out in 1991, is not excessively 
burdensome at present But it reflects a commitment to 
social engineering that is alien to the free-madoet Anglo- 
Saxon tradition that is now in tire ascendant in Britain. 

History has frequently shown that what works for the 
Continent will not necessarily work far Britain, and vice 
versa. Today, however, it is the Continent, with its huge 
unemployment problems, that shook! be learning from 
Britain — not tire other way round. 


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We’re not just on the map. 
We’re all over it 

Its not only our vast worldwide 
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HCNG KONG TEL 852/28 02 28 88 . Singapore TEL 65/535 94 77 

PAGE 12 



The Dow 

1 ~ ~ Tobacco Ruling Lifts i 

James River to Buy Paper * irm Blue to Record ) 



- 120 > 

' 15) ' D ‘ J F M ' A M •: , 110 Hd J ' F ' M ' A ' M ' i 
1996 1997 t. 1996 1997 • 

:: Ai®KS3Sir£^Sa6£ 

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Compiled bjOtr Staff Fran Dapttcha 

NEW YORK — James River 
Corp.. which makes Brawny brand 
paper towels and Dixie cups, said 
Monday that it would buy Fort 
Howard Corp.. a commercial sup- 
plier of paper products, for $5.8 
billion in stock and assumed debt. 

The combined company, to be 
known as Fort James Corp., would 
have more than $7 billion in annual 
sales and hopes to be bettor able to 
challenge the industry leader, 
Kimberly-Clark Corp. 

Fort. Howard shareholders 
would receive a total of about $3.4 
billion in stock, or $42.45 a share. 
Fort Howard has debt of about 
$2.4 billion. 

News of the deal sent Fort 
Howard shares up strongly; they 

closed at $4250, up $6. James 
River shares gained $1.75 to close 
at $32,625. 

Miles Marsh, chairman and 
chief executive of James River, is 
to head the combined company. 

The deal is expected to produce 
annual savings of $150 million to 
$200 million a year, die companies 
said. Those savings would come in 
part from the elimination of some 
jobs, but those cuts have yet to be 
identified, Richard Elder, a James 
River spokesman, said. 

But there will be short-term 
costs before those savings appear, 
Mr. Marsh said. 

While the companies have not 

determined how wmeh earnings 

will be reduced to cover the cost of 
the deal, Mr. Marsh said, “Ob- 

viously, it win have a significant 
impact on 1997 earnings/* 

James River, based in Rich- 
mond, Virginia, is the world’s 
second-largest maker of tissues, 
with $5.7 billion in sales last year. 
Its brands include Quilted North- 
ern bathroom tissue. Vanity Fair 
napkins. Brawny towels and Dixie 
cups and plates in North America. 
Its European brands include Lotus 
tissue and towels. 

Fort Howard, based in Green 
Bay, Wisconsin, has sales of about 
$1.6 billion from commercial 
goods sold under the Preference 
and Envision bands and household 
products such as Mardi Gras nap- 
kins and paper towels and Green 
Forest tissues, which are made of 
recycled paper. (AP. Bloomberg) 

NEW YORK —Blue-chip stocks 
rose to record highs Monday, led by 
Philip Morris after a Florida court 
ruled that RJR Nabisco Holdings 
was not liable for a smoker’s death. 

The Dow Jones industrial aver- 
age closed up 142.48 points at a 
record 7.12538, while the broader 
Standard & Poor’s 500-share index 
finished at a record 830.12 points, 
up 17.15. 

Philip Morris closed up 4V& al 44, 
reversing sharp losses after a Florida 
jury ruled tha t RJR was not neg- 

plan to balance the federal budget 
fr aming issues outnumbered los- 

ing ones by a 2-to-l ratio on. the-. 
New York Stock Exchange. 

New York Stock Exchange. 

“Corporate profits were bette^, 
than expected, and the interest-rate^ 
environment has been helping th^ 
Dow come back,” said Arthur^, 
Micbeletti, an investment strategist 
at Bailard, Biehl & Kaiser. 

The price of die benchmark 30^ 
year Treasury bond finished steady^' 
at 96 28/32, with the yield edging up^ 
to 6.88 percent from 6.87 percen^. 



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Source: Bloomberg, Reuters 

[ mentation*] Herald Tribune 

Microsoft Smells Riches in WkbTV 

Its Absorption of the Intemet-to -Television Venture Is a Calculated Bet 

Very briefly! 

By Steve Lohr 

New York Times Service 

and has suffered large losses. As of 
April 1, 56,000 people had signed 

• Western Atlas Inc, an oil-field services concern, said it 
would spin off its industrial-automation unit, which generates 
about half the company's $3.1 billion in annual revenue. 

• Northrop Grumman Corp. and Logicon Inc said they had 
signed an agreement under which Logicon shareholders 
would receive $52 of Northrop stock for each Logicon share 
they owned. 

• Huntington Rancshares Inc agreed to purchase First 
Michigan B ank Corp. for $908 million. 

• Microsoft Corp., Hewlett-Packard Co. and VeriFone 
Inc are forming an alliance to offer a service enabling 
merchants to set up shop on the Internet. 

• Donaldson, Lufkin & Jenrette Inc agreed to buy De- 

NEW YORK — Selling out to 
Microsoft Corp. is the dream of 
many a high-technology start-up. 

But WebTV Networks Inc. stands 
in a class by itself in persuading 
Microsoft to invest lavishly on un- 
proven, if promising, new technol- 
ogy. Last month, Microsoft agreed 
to pay $425 million in stock andcash 
for the maker of set-top boxes that 
bring the Internet to television sets. 

Last Friday, in a filing with the 
Securities and. Exchange Commis- 
sion, Microsoft noted that WebTV 
has attracted few subscribers so far 

up for the service, which started in 
October, paying $ 1 9.95 a month. 

Since its be ginning in June 1995, 
WebTV has lost $29.4 million. And 
the company’s appetite for cash has 
been growing. In the nine months 
ending last December, tbe company 
lost $26.1 million. 

But the industry tends to view tbe 
deal as a calculated bet by Microsoft 
rather than an example of a rich- 
company being careless with cash. 
As television becomes digital, like 
die computer, Microsoft is eager to 
find ways to make money from tbe 
mass-market television audience. 

And WebTV has developed pi- 
oneering technology for bridging 
the PC- TV divide, especially hard- 
ware and software for polling im- 
ages and text off the Internet and 
displaying it clearly on television. 

WebTV’s under-tbe-hood tech- 
nology was probably the real lure 
for Microsoft, said Roger McNamee 
of Integral Capital Partners, an in- 
vestment firm. 

Imagine the day, he said, when 
tagMefinition television becomes af- 
fordable and popular, with Microsoft 
charg in g manufa cturers a license fee 
of, say, $50 a set for the software that 
brings tbe Internet to those souped-up 
sets. Sound familiar '? 

cigarettes and t ha* the cigarettes 
were not unreasonably dangerous 
and defective. 

Philip Morris was the most ac- 
tively traded issue on tbe New York 
Stock Exchange. 

RJR finished up 3 at 3216. 

The Dow also got a lift from-. 
International Paper, which closed 
up 2 l A at 45% after Bear Steams 
recommended investors buy the 

Paper stocks also, were helped by 
news that Fort Howard, a commer- 
cial supplier of paper products, was 
being acquired by James River. 

Tntftmarinnai Business Machin es 
rose 3 % to 165%, and Travelers 
Group rose 2 to 56%, also strongly 
lifting the Dow. 

Tbe broader market continued to 
ride a wave of optimism unleashed 
by strong economic reports last 
week. The government said the. 
economy was growing strongly 
with practically no threat of infla- 
tion and that the unemployment rate 
was at a 23-year low. The stock 
market got another lift after Pres- 
ident Bill Clinton and congression- 
al leaders reached agreement on a 


dstonOne Holdings Corp., a computer-maintenance com- 
pany, for about $924 million in cash and assumed debt 

pany, for about $924 milli on in cash and assumed debt 

• St Joe Corp., a paper maker, said it had made a bid to buy 
tbe 46 percent of Florida East Coast Industries it did not 
already Own for $428.4 million. Bloomberg. Reuters 

Strong Growth and Interest Rates Lift Dollar 

Weekend Box Office 

The Associated Press 

LOS ANGELES — “Breakdown” dominated the U.S. box 
office over the weekend, with a gross of $12.7 million. Fol- 
lowing are the Top 10 moneymakers in the United States, based 
on Friday’s ticket sales and estimated sales for Saturday and 

I. Breakdown 






3. Volcano 


S9-5 mllBon 




5. Romy and NUeMMA Reunion 



6. Anaconda 

(Cotumbfo Pictures) 



(Law Brattien) 





9. NUintor at 1000 

(Warner BmsJ 


10. GnaK Pntnle Btank 

(Hollywood Picture; 


Bloomberg News 

NEW YORK — The dollar rose 
against most European currencies 
Monday, helped by stronger econom- 
ic growth and higher interest rates in 
the United States than overseas. 

“We've got good economic 
growth and no inflation,” said 
Agostino Floro, a currency trader at 
Bank Austria, 

“With everything looking great 
in the U.S., foreigners want to invest 
in this country. If anything, tire dol- 
lar should be even higher.” 

The U.S. government said last 
week that the economy expanded at 

the fastest rate in a decade during the 
first quarter and that unemployment 
fell to a 23-year low last month. It 
also said employment costs grew at 
a slower rate in the first quarter. 


The dollar rose to 1.7325 Deutsche 
marks in late trading from 1.7295 
DM on Friday and to 5.8470 French 
francs from 5.8353 francs. It also rose 
to 1.4745 Swiss francs from 1.4710 
francs. But die currency slipped to 
126375 yen from 126595 yen, held 
back by concern that central banks 

might intervene to support tbe Jap- 
anese currency, and the pound rose to 
$1.6230 from $1.6220. 

Robert Rubin, the U.S. Treasury 
secretary, repeated that the United 
States shared Japan’s concern about 
the yen’s weakness. The dollar 
reached a four-and-a-half-year high 
against the Japanese currency last 
week and has risen about 10 percent 
this year. Mr. Rubin said he agreed 
with Japanese officials who had 
been “concerned about recent 
weakness” of the yen. But at the 
same time, be said, the dollar’s 
strength was helping the U.S. econ- 

omy by keeping inflation down. 

Roger Chapin, manager of for- 
eign exchange at BancOne in 
Columbus, Ohio, said: “Overall, the 
dollar is well supported by econom- 
ic factors. But the Rubin comments 
help inject a note of caution.” 

A weaker yen swells Japan’s 
trade surplus by making its exports 
cheaper and imports more expens- 
ive. Its surplus with America was 
$48 billion last year. 

“Above 128 yen is a very dan- 
gerous zone to buy dollars,” said 
Kosuke Hanao, bead of- currency 
trading at Industrial Bank of Japan. _ 

Friday. A yield below 7 percent is 
seen as supportive for stocks be- 
cause at that level, equity investors 
are not likely to be enticed to switch 
their portfolios to bonds. 

The Nasdaq composite index. 

; home to many fast-growth com- 
puter and biotechnology compa- 
nies, dosed up 33.99 points at 
1339.32, led by Cisco Systems. ( 

Tbe networking products man- 
ufacturer rose 1% to 58% on ex- 
pectations for it to report strong 
quarterly results cm Tuesday. 

Oracle rase 2W to 4454 after Leh- 
man Bros, reiterated a boy recom- 
mendation on the software maker. 

Stocks in companies with smal- 
ler capitalizations also were strong 
as investors searched for sectors 
that may have missed out on the 
broader rally. 

The Russell 2000 index of smal- 
ler shares closed up 8.45 points at 
362.43, capping its largest two-day 
advance since August ! 990. 

It was paced by Logicon and 
Transitional Hospitals, two compa- 
nies that agreed to be taken over for 
hefty premiums to their closing 
prices Friday. 

“People will look for sectors that ; 
haven’t participated yet,” said Mi- I 
chael Driscoll, a trader at Ham- ; 
brccht & Quxst in New York. 

But Warren Buffett, die world's 1 
second-richest man and a renowned \ 
investor, sounded a cautious out- > 
look on die stock market at the i 
annual meeting of his holding com- _ 
pany. Berkshire Hathaway. i 

He said stocks were not likely to \ 
repeat tbe feats of the past 15 years, ] 
when the Dow industrials rose 14 ! 
percent annually. Berkshire Hath—’ 
away owns shares in Dow stocks> 
such as Coca-Cola, American Etf* 
press and McDonald’s. u 

“This has been an extraordinary 
expansion, and I don’t think we wilL 
have the same tail wind going ftn^j 
ward,;: he„said. ....... . ... : 

*. (Bloomberg .Bridge, APjZ 


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■’FRAnkfttbt ' u„„ « . _ Deutsdie marks (S596.9 million) 

^^PS^Lr-^bf AG >. from i-32 billion DM in the first 

^ratsorsi^oper. Hoechsi Marira RoSSatTiSIira 

22 P ercent , beca ? , e : and'* Hoechst’s specialty-cbemic- 
OTjgtnjctDrmg costs and falling ; aislwsiness. The company Look an 
sf^tapdjreswr unit, . ; 85;nrillion DM restraSg charge 
T rO epan ueiy, jne company’s' in fee year-earlier quarter. 

2Jf*i." nit “ 1 «oech5t shares feU 1.30 DM to 
bM fonMd a #obal alliance with dole at 66.35. 

jqJSj a < "°: I O ^velop - Since 1 995, the company has sold 

sen Actonei, a treatment for bs-"; off 1 Subsidiaries including its carbon 
® and other bone diseases. ’’ and 'graphite unit SGL Carbon and 
g profit fell to 1.03 biniori"' the'; shampoo maker Schwarzkopf. 

Hoiebhst said last year that it would 
transform itself into a holding corn- 



djv.o- ; . : o, n dri 

' Ctwvilaf by Otr SuffFmm Dispatches J 

( ^ STOCKHOLM — Incentive 
ij'VB said Monday it would offer 
f _$l r 59 billion to acquire all the 
Isharts of 1 Vivni Inc., a U.S.-; 
Erased dialysis service comoanv. 




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lysis service company. 
Swedish' investment 


percent decline m first- 
pretax profit, to 828 mil- 
kronor. ($105.9 million). 
n company blamed the de- 
cline on “stagnation* * or slower. . 
“sales increases at companies in"' 
jvhich it owned shares. ' " *£? 
y 'incentive in recent years has' ? 
“sold companies or stakes, in. ' 
-companies that it (foes not con- 
. sider to have high' growth pros- , 
jaects and secured full owner- 
ship of companies in which it : 
^wants to invest. 

« The Vivradea] “represents a 
.major strategic move for Iri-v 
_centive’ and. continues our 
“Strong thrust into the high-’ j 
"growth health-care sector/ 
Mikael Lilius, president of Iri-?’ 
tcauive/said. - 
11 Incentive’s wholly owned 
. "dialysis-care company Gamteo 
S AB will offer $35.62 a share for 
"Vivra. In San Mateo, Califor- 
nia, Vivra’s bond recommen- 
°d6d that shareholders accept the 
jbid. (Bloomberg, AFX ; (r 

‘ pany with separately traded units 
and seek a listing on the New York 
" Stock Exchange. 

The company said it expected op- 
erating profit ro rise and net profit to 
fall for the full year as it sold more 
urjft&'to focus on pharmaceuticals 
amf other profitable businesses. 

*Tf economic conditions cooper- 
ate/* the chief financial officer, 
Klaus-Juergen . Schmieder, said, 
“we expect to post stronger results 
on a comparable basis." He based 
' his forecast on expectations of 
stronger demand, room to raise 
prices in some sectors and favorable 
currency effects. 

The first-quarter results were hurt 
by a sharp drop in operating profit 
; and sales at the Trevira unit amid a 
I slhmp in the European textile in- 
7 di^ry. Operating profit at the unit in 
j thSKrst quarter fell 83 percent, to 16 
‘ miflibh DM. 

rbse 16 percent, to 566 

Quick Test for Blair’s Pledge 

New Leader Faces Pressure to Raise Rates and Taxes 

Agence France-Presse 

LONDON — Prime Minister 
Tony Blair's government faces its 
first big economic test this week 
over whether to raise interest rates 
and prepare for tax increases, a 
move that would break the spirit of 
its pre-election commitments. 

the new chancellor of the Ex- 
chequer. Gordon Brown, will meet 
Wednesday with the governor of 
the Bank of England, Eddie 
George, who is expected to urge an 
increase in interest rates to counter 
any inflationary pressures. 

But even if London economists 
would generally approve of an in- 
crease in the base lending rate from 
6.0 percent to 6.25 percent, busi- 
ness leaders are pressuring the new 
government to raise taxes instead. 

The Labour Party, which was 
returned to power in Britain’s gen- 
eral election last week, promised in 
its election manifesto not to raise 
the standard and the top rates of the 
income tax. as part of an effort to 
distance itself from the "tax and 
spend’ ’ image of its socialist past 

Britain's economic upswing is 
thought by some to be at risk from 
inflation, powered by robust con- 
sumer demand, and a strong pound 
that penalizes its exporters. 

Many economists say an interest- 
rate increase would not be fee right 
remedy, and two employers’ groups 
— fee Confederation of British In- 
dustry and fee British Chambers of 
Co m merce — have argued for a 
one-percentage-point increase in 
the standard income-tax rate. 

Mr. Brown's first decision as 
chancellor will be a critical one, 
analysis say, in es tablishing his 
credibility in fee financial markets. 

The markets would welcome an 
interest-rate increase as a sign of 
his determination to fight inflation. 
But in a country where fee central 
bank is not independent, inrerest- 
rate increases axe viewed largely as 
political decisions, with their di- 
rect impact on fee lives of milli ons 
of Britons wbo have bought their 
houses wife mortgages. 

The calls for tax increases are 
likely to become louder over fee 

next few weeks as Mr. Brown pre- 

cial budget in early July. 

■ Dispute With EU on Levy 

Labour’s campaign promise to 
reduce value-added tax on feel 
may meet with opposition from the 
European Commission, Reuters 
reported Monday from Brussels. 

A representative of the com- 
mission said that while efforts 
would be made to avoid a direct 
confrontation, fee spirit of the 
EU's tax directive was “to bring 
normal rates together/* Labour's 
promise to reduce fee tax “goes 
against that objective," she said. 

“The Commission is ready to 
study wife the British authorities 
fee best solution/' she added. 

Labour has promised to cut fee 
value-added tax on hearing fuel to 
5 percent from 8 percent 

All fee 15 EU countries except 
Britain tax fuel at a standard value- 
added rate feat varies from IS per- 
cent in Germany and Luxembourg 
to 22 percent in Finland. 

Investor’s Europe 

OAX ’ 

■ 260Q, ^-r^TT-, 

D J F M 

Befeange- ■’ 


1997 ' 

■ : -Ld*idofi ^ :• V' : 


: m -A-jP; 2650 

4300 j*** V— " 2700 — 

' COO — " — •• 2550 

? 4100 -Af- “ 2400, 

4000 V“ — 2250 

m D-yP H AJI 
1996 1997 . 1996 

Amsterdam • : • >, . ' u ' 77&S7 : ' 



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tontion ! . 




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Source: Tetakurs 

IiWTunoaal Herald Tribmo 

Very briefly: 

Strong Sales Lift VW Profit 48% 


million DM, as sales" rose 3 percent, 

1 to'3'36 billion DM. The rales in- 
- crease came even though its second 
. most' important drag, the anti-al- 
• lergy. treatment Seldane, is “under. 
, mice and competitive pressure,’’ 

1 Hoechst said. 

1 The unit's venture wife Procter & 

5 Gamble could earn it as much as 20 
percent of the market for osteoporosis 
drags over the next five years, adding 
about $350 million to ammjri sales. 

Procter & Gambte, which -de- 
veloped ihe osteoporosis treatment 
being tested before sale in- the United 
States, said fee agreement would take 
effect immediately and ran through 
‘ 2015^ (Bloomberg,^ ! ^s?AFX) 

Cempded by (hr Staff Fraa Dupntftn 

WOLFSBURG, Germany — 
Volkswagen AG, the largest car- 
maker in Europe, reported a 48 per- 
cent increase in first-quarter net profit 
Monday and said it expected profits 
to improve for the full year. 

VW said it earned a net 172 mil- 
lion Deutsche marks ($100 million) 
in the quarter, up from 116 million 
DM a year ago. Sales rose to 26.86 
billion DM, from 24.47 billion DM. 

The company said the results 
would have been even better if not 
for the effect of a Spanish truckers’ 
strike in February. Ihe strike, which 
prevented delivery of some key 
parts and components, cost the com- 
pany 64 million DM. 

Analysts said the earnings, which 
were in line with expectations, were 
a further co nfirmati on of the com- 
pany’s cost-cutting strategy and 
strong product line. 

VW last week reached an agree- 
ment with workers that permits the 
company to pay wages to temporary 
workers that are 10 percent lower 
than those paid to existing workers. 

The company's main cost-cutting 
strategy involves a reduction of the 
number of underbodies it builds its 
cars on to four, from 19. 

VW shares, the best-performing 
on the benchmark DAX Index this 
year with gains of 89 percent, closed 
Monday at 1,198 DM, up 41. 

VW said strong international 
sales offset fallin g demand in Ger- 
many. International sales rose 193 
percent, to 17.8 billion DM, while 
domestic sales fell 5.2 percent, to 
9.1 billion DM. 

“VW’s strength overseas is a big 
competitive advantage compared to 
other European carmakers," said 
Klaus-Juergen Melzner, auto ana- 
lyst with Deutsche Morgan Grenfell 

in Frankfert. “If it did not have that 
strategic position, the earnings 
would not be nearly as good." 

In the United States, “due to the 
rising dollar, active import business 
continued," VW said. The company 
did not quantify the effect currency 
had on its earnings. 

Sales of Volkswagen models in 
tire United States rose 8.7 percent, to 
29,526, the company said. Audi 
sales rose by more than a third, to 
7,716 cars. 

In Mexico, VW sales rose 24.3 
percent, to 12334 autos. Volks- 
wagen said it sold 67,269 cars in 
Onna from January through March, 
a 28.6 percent increase. 

German production fell 4 percent, 
to 1 , 241,600 units, in the first 
quarter. Cars led the decrease wife a 
5.3 percent decline, while sport-util- 
ity vehicle production rose 9.4 
per, cent. • (Bloomberg, AP) 

- • -cr ccrs 

SAP: High-Growth Software Manufacturer Is Targeted in Germany’s Biggest Insider-Trading Inquiry 

• Skanska AB’s first-quarter pretax profit fell 23 percent, to 
412 milli on kronor ($52.7 million) from 537 million kronor a 
year earlier, amid lower activity in the Swedish construction 
market and reduced gains from fee sale of real estate. 

• OMV AG, Austria's oil and gas producer, reported an 83 
percent increase in pretax profit in the first period, to 1.02 
billion schillings ($843 million), from 94 million schillings a 
year earlier, as it streamlined its corporate structure. 

• Olivetti SpA’s former chairman. Carlo De Benedetti, was 
cleared 1 of tax fraud in a preliminary inquiry into alleged 
dividend-stripping at the company from 1 988 to 1 992, judicial 
sources in Turin said. 

■ Matra Cap Systemes, a unit of Lagardere SCA of France, 
changed its name to Maira Systemes & Information. 

• Danzas Holding AG, a Swiss transportation company, said 
first-quarter results were “slightly" better than a year earlier 
but did not release figures. Its net profit last year more than 
doubled, to 13 milli on francs ($83 million). 

• Romania opened a 137-hectare (338-acre) free-trade zone 
on the Danube River to try to increase trade and attract foreign 
investors. The zone is in the new port of Galati. 250 kilometers 
(155 miles) northeast of Bucharest. 

• Sweden’s new -car registrations rose 58 percent in April 
from a year earlier, to 26352. 

■ Bosch-Siemens Hausgeraete GmbH, a venture of Robert 
Bosch AG and Siemens AG, denied a report that it planned to 
bid for Raytheon Co/s Amana appliance unit 

• Spam’s producer price index rose 0.1 percent in March from 
February and 0.8 percent from a year earlier. 

• Denmark's unemployment rate fell to 8.0 percent in March 
from 8.1 percent in February. Bloomberg News, Reuters. AFX. AFP 

it no longer e: 

• disclosed the inveshgariou t*i j lf$6 goal of a 
aftemqofc ! pretax profit. 


riwfcTi I-*'*..-” - > : r 

'■ ir-. ere ; 5-' “ 
tan -.f« rrv*. •: 
*»**■*“•• 5: 
am. j srs ' “T- -'.-r - 

■ alt*.* l •xr.r’. ' - 

*K»fc n-v w--:--=g- 

' fear: -r.-r- 

to reach its 
I percent increase in 

IS 1 front page. By early aftemqbff; ! pretax profit, 
after SAP said that, '^^(inMiieferpf thcannouuce- 

Wa&a *' 'frotiane^ volatile mefi^^AF phm^ed“rnPre ; 

fVt n K»T charts than pfyren t _ _T h* shares . CQH- 

had rebounded. x tinned to fell for several days, but 

Hie shares finished at a-i^ra^Aesdirecovered dramatically. 

32430 Deutehlrmaiks ($18839); a:' As it tamed out, the company’s 
of 3.10 DM for fee day, affer : ^ofit wanting was wroiu; A record 
an intraday low of 311 DM. ’ fourth quarter boosted SAP’s faH- 

ity could resume Tuesday year pretax an above- 

i^^Umdbfftraderarcnimto^ target 43 percent. 1 

Rafter a holiday Monday. A.'.’An ;SAP spokesman, ; Michael 
iVestigators are Iooking ''httti'.r l Pj?srer| said proseconks^lsa, were 
everns of last Oct 22, when the ^looking into derivative trading as : 
company released a quarterly report sodated wife tbe plunge, examining 
took the market by surprise; Iwfeo had profitea from option xan- 
Alfter fee share price had climbed tracts on SAP shares, according to 
steadily for weeks, SAP warned that information that the authorities.have 

shared wife the company. 

SAP is cooperating “actively" 
wife the inquiry, winch began in 
December, Mr. Pfister said.' He 
‘-denied reports thar prosecutors had ; 
searched SAP's offices and confis- 
cated SAP’s telephone records. 

“According to information from 
prosecutors, the investigation has 
been extended to all staff and di- 
visions of fee company with access 
to fee relevant information, which 
means that there is not at this time 
any targeted probe of specific 
people,” the company said late 

Many Germans have worked hard 
to put fee country ’sold reputation as 
an insider haven behind it. The Gor- 
man version of the U.S. Securities 

and Exchange Commission has 
passed an 11 cases to prosecutors in 
the first quarter of 1997., compared 
wifescven-for fee wirdle of T9?5 : . ■ 
'*• Snide itAfras’ fbtindefe' bbwteverj 1 ' .only had seven. sue- , 
cessful prosecutions. The maximum 
punishment for insider trading is 
five years in jafl, hut all seven de- 
fendants paid only fines. 

la February, Germany imposed 
its toughest penalty yet with a fine of 
3.6 million DM in connection with 
trading in shares of the construction 
supplier Wera AG. : . 

Despite its reputation, “Germany 
has become a much fairer and open 
place for trading shares,” said Ratf 
Conen, Frankfurt-based analyst at 
Salomon Brothers. The SAP case 

could help Frankfurt by sending ihe 
message that regulators are deter- 
mined to clean up Gerarany’s finan- 

1 Ptiti^titigfee rit$*g J &nancinl im- 
age is ,essential to a raft of other 

To lure international funds, law- 
makers are rewriting laws to im- 
prove market efficiency and allow 
companies to buy back their own 
shares. Deutsche Boerse AG, the 
Frankfurt stock exchange, has 
opened a new market for small 

Government privatizations are 
pending and banks are promoting 
equities as a means of achieving 
pension savings wife state pensions 
facing a funding crisis. 

ENI and ENEL Set Veaature 

Bloomberg News 

ROME — ENI SpA, Italy’s state-controlled oil and gas 
company, and ENEL SpA, its state-owned electrical 
utility, said Monday that they had signed a memorandum 
of understanding to set up an independent electricity 
company this year. 

The new company will have a combined capacity of 
5,000 megawatts, which would make it fee second-largest 
electricity producer in Italy behind ENEL and ahead of 
Edison SpA’s 3,200 megawatts. ENEL stands for Ente 
Nazionale per L’Energia Eletrrica, 

The new company, which will be 50-50 owned, will be 
quoted on the stock market. 

The government in June will sell a third block of shares 
in ENI, whose full name is Ente Nazionale Idrocarburi, 
taking fee government’s stake down to about 55 percent. 


mtk Low Oosa pthc 

Imp tmu- 

Monday* May 5 

■j, Prices In toed amandas. 


~ Hlgfa Low Ckm Piw. 

Low Ckm Pm. 

a** , .. 

Zt t- 5 J 

«"■ " t -i r,2- 

■V -1 

jjt* . > V i. 

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s> '*■/. *; ■* i\ 

Mr ? E . .a ** :■* ’ 

is j: ts* 

is ***.-» 

Zr : 3.^ 


ASLAMHO 13720 

Aeom -'Mas® 

AMI wm 

Akzo Mobd 25/30 

Boon Co. 10K20 

31 J» 
V 77 


Koagawman 9190 

HwrttXwglas J72 

■ SS 



coteifio.i «?g 















Stock WBC54M4 
P owtoo r.I i m 

29A 300 293 

rn 414 . 413 

BEF* .m w SS • So 

D/S 1972 B " ■. 214500 213500 273500 212000 












655 6508 

Jtl 822 












J3S 328X1 




V r. 


. i 21- 

5: « m 

rS u‘A*> 

<££ ' r * 

- %■* 


AMBB 1330 

Adhta 182 


BkBwtin W 

BASF • MJ33 


am n 44 

BMW _ W 
CKAGCctorto 164JB 

DflgtaSB 1 „ 79-80 

3 J ^ iT ^ . 

*1 iji 

li i i 

■v; «! is j? 

<•< .. , g *: -7 1 
jsm ut’ a ? 5 *>. ■?; 

?jrr ■ 


« « M 

-■ h 


Markets Closed 

^angkot London, Mex- 
Seoul and Tokyo were 
id Monday for a boli- 

P n w to u BMOlJl 
Mi aq)« 05775 BB4J5 
lOsnoTuoiBn^ uw 
S3t 417 431/5 417^ 
8875 S7J0 87.7S Mg 

' •408 W i8P5 
n5 279^5 28L25 2SU5 

30^ ^ 

’as 1 ® 1 ! 

ww 8W ^ 

asm 3S7S 
14550 14575 
-17VS 1800 1790 
BUD 8130 8UD 
'3530 3530 390 

^0 6447 4420 

3740 Sg 77*2 
S290 ®0 ,®JS 
1*25 14050 14® 
14175 1«K 
1^75 1^725 
M SOU 9060 

92 S wf.wo 

3225 3350 3215 
Z13S0 21350 2 W® 
t aa is5B isx» 
9^ 97000 97650_ 

or. i, 171S0 
SOLCWbon c ’ 
Sttnm 9090 

ISarWte * 
SwtmeWf ®o 

DATt 35217* 
P nw to— 341037 
»0 1300 1310 

100 18050 1B0 

145 34530 334 

95 1409 1370. 
SS 3195 3165 
69 69.13 6110 

. xi 55.73 54 

SO 70J0 68JO 
68 6BJ0 67JU 
LS5 05*5 8110 
L Mi 43LM 43J0 
SS 1490 1441 

163 IMfO lfiLSB 
SS 4770 4665 
SO 13120 131 JO 
79 79 JO 78J0 
SO 9X40 91J5 
A0 38J5 37 JO 
.10 57 JO 5558 
167 361 368 

152 156 152 

124 329 323 

113 113 115 

144 M7 143LS® 
20 9550 9450 
195 4K 495 

I SSS 57 “ 

00 530 516 

AO TUU 71-90 
!£7 1270 1260 

20 2440 2160 
R7 49M0 495J0 
ffl «6S m 
SS 3555 3130 
jo mao 167 jo 

!08 4217 4120 

of a asm 

so 73.15 71-05 
111 321 319.50 

130 17LS0 14SMS 
M2 248.90 360 

96 9635 

,T. KT. 1490 
MO 843 B44J0 
B0 381 38820 
SO 90.10 B9-40 
75 726 773 

IBS UK 1157 

RalPn&_ . 
Hong Lana Dm 
Hang Sang Bit - 
HcnSoson Inv 





Hiimm 8 Hdgs 




Mnm H Hda 




Pncri Oriental 


Shun Tax Hrigs 


Sih China Posf 


Wharf Hdgs 

... g 














? ^y i 















29 JO 

4240 4020 
3720 36.10 
9 JO 9A0 
MTS 1445 
90JK B8JD 
195 8J0 

7060 6750 
1230 1230 
V.-K 06W 

1325 1320 
410 4 

203 19750 
6025 5H_75 
2X10 226S 
21 70.90 

1850 1035 
4060 4SJ0 
285 283 

293 295 

9050 8725 
488 5 

B 8 

670 620 

6158 5975 
3050 29-20 
1725 1115 


Agues Bnitetoo 
Boo Popular 
Bco Smtander 


Union Fenau 


































31 <10 


























































High Lew Dm Pm. 

OrktaAMA <15 . 603 <15 <03 

PeftoG*o5vc m 273 282 266 

SmnPeSmA 12550 123 124 123 

SdAstod 126 125 126 124 

Ttansocean Off 42® 415 485 417 

StoretmmdAM 45.10 4460 45 4450 

High Law Close Pm 


Astra Ml 
BfcMItodm - 
Bk Negara 

















5925 6000 
1700 1775 
1450 1475 

9675 9708 

3100 3180 
5125 5175 
6775 <875 

9600 9675 
6000 6025 

3450 3550 














PSE Wee 273642 

Previous: 2M5J5 










BkPN0p HI 















Metro Bank 











305 30750 

PhD Lang Dlst 










5M Prime Hdg 







Alearan Attic 








Do Been 








jghmtos Ml 

Ubcffy Hdga 

Me* nr ^ 

2920 29 M 
29B 298 

2HL50 28475 

2w m 

207 199 

16JC 16JB 
49 48.95 
2620 26.15 
16H5S 159J5 
3875 37J5 
32 31 JB 
1X60 1850 
IBS 10850 
60 9925 
29 2850 
X14 X12 

6025 6X25 
333 330 

12 6 125 

7725 1695 
10050 9975 
1950 1925 
9X50 9125 
47.10 4675 
66 6475 
7225 7175 
13275 13150 
4675 46 

SB 5750 
211 205 

77 JS 7725 

2940 2X40 
298 298 

2B425 28425 
»£» 29874 
199 199 

ltSB 1650 

2615 2615 
159J5 15975 
37 JO 37 JO 
3LB0 3U0 
I860 1850 
109 109 

5950 5950 
2850 2850 
X12 X12 

6025 6025 
330 330 

125.75 125J5 
17.10 17JD 
9950 9950 
1925 1925 
9025 9025 

67 47 

6525 6525 
72 72 

132 132 

46 46 

57.75 57J5 

205 205 

n 7B 




General Asdc 








Mo Bunco 
S Paata Tatota 

Telecom Itola 


HUB T UHfcra 1233X18 
PrmtaK: 123S480 

11700 11505 11635 1100 
3715 » 3680 3715 

4400 4345 4390 4320 

1270 1230 1252 123? 
22900 22500 22850 22£0 
2440 240S 2<Z5 242g 

9195 9090 90S 9230 

8760 8615 B6W 8740 

5750 5670 5705 5700 

29500 29000 29350 2SSS0 
74800 14510 14770 14501 
2300 2265 2300 2250 

5875 5B05 5850 WO 

7340 7280 7335 7295 

10390 10150 101 75 10600 
1126 1106 1110 1122 
501 4SI 49950 486 

2525 2500 2SM 2500 

3810 3760 3780 OTO 

14250 13760 137B0 13920 
17500 17350 17380 ipso 
17350 71200 11275 11395 
8270 8200 8260 8210 

4645 4570 4595 4625 
5435 S340 5360 5375 





AJcdW AJstt 









ceto tara 

CtoSsiSan War 

□LF-Dada Fran 







Gan. Emx 


I metal 


Pal has A 
Pefnxt Rknd 
Plnautt- Print 






SG5 Thomson 
Sto Generate 

CACJB: 247X84 
Pierian: 2655X1 

880 858 

19SJD 191 
879 866 

648 636 645 

36X50 35B 36X50 

775 768 769 

-927 90 5 917 

248J0 242 24X60 

1077 1051 1860 

3787 3690 3760 

275 27150 27450 

879 855 
195 19050 









Ksppel Bank 
Kepi* Feta 
Kep pel Land 
OS Union BkF 
Partway Hdgs 
Stag Air foreign 
Slog Lund 

Stag Tech Ind 
Slna THecoraai 
Tafiia Bank 
UW Industrial 
Wing TM Hdgs 

































182 in 

450 452 

us in 

1750 1750 
1 ® lalo 
5JS X85 
6 J 0 6*1 

TSM 1280 
7.05 7 

2650 2650 
164 174 

245 2J2 

134 332 

1J9 147 

1440 14.10 
190 194 



Total B 


988 971 

2V« 2103 

1424 1405 

539 530 

33450 330 

37X40 365JH 
310 299.90 
591 584 

2489 2460 
1995 1982 
143 13440 
1564 1549 

198 19850 
574 552 

33450 328 

1039 1025 

47950 464X0 
<56 648 

2705 2691 

795 779 

28590 28X20 
739 720 

18490 18050 
49250 4B620 
90 8 SM 
364 35850 

141 JO 
197 JO 

. 725 







201 JO 



Stockholm at 16 tom pom 

105 10X50 
9850 97 

20350 203 

325 32050 
200 19550 
286 27250 
462 453 

264 26150 
1178 1140 
515 SM 
354 34750 
24650 235 

247 247 

23650 2315D 
203 195 

20750 20750 
17750 174 

83 8250 
23950 23X50 
346 33750 
177 173 

11X50 109 

22050 217 

259 259-50 


























Astra A 







AltasCDpco A 

200 196X0 






2 08 













Ericsson B 






Koines B 






■ ii 




45D 43820 445X0 447X0 








M 0 D 0 B 



39490 387 JO 

394 391X0 


247 24250 

The Trib Index 

Prlcas as at 3MJP.M. Piow York Unto. 

Jan. 1 . 1992 ^ wa 



% change 

year to date 
% change 

World Index 





Regional tadama 










N. America 





S. America 

■bidnstrfal Indema 





Capital goods 





Consumer goods 




















Raw Materials 









+6.1 B 






The btiemaitoomt Honkt TrSxjrto Worid Stock inOox O tracks tfw U.S. doSar vatoee of 
280 intomaUonoSy twsstoMe stocks tmm 2S countries. For mom Wwmetto). a boo 
bookfot is nva&tbi) by mrttbjgJo Tho Trib Index, 181 Avenue Cttarios do GauBa. 

92S21 NeuayCodax. Franco. CompMod by Bkxxnbory N*ms. 


Low Close 


High Lew 

dose Pm. 

Plan . 

S-EBanfcwi A 














Stare ; 

178 17450 
147 14150 
190 190 

in no 
221 21856 

Akw Ahun 
Bk Now Salta 
Boride Gold 

Blodieta Ptwriu 

Sao Paulo 


Brahma PId 

Helsinki «« 

En a a 

Honmakll -i 
Merita A 



ur ' 

44BB 4420 
mS .22150 
SC50 4950 
f! 73.18 
T7J0 17*40 
144 -143 
3X90 3W0 
T3&» IB 
‘332 32958 
9950 9850 
12150 128 

4480 449 
•ento 220 
5030 * 

7X50 * 

HJ0 1750 
144 ro 

39.10 3858 
136 131 

331 32(150 
196.10 J97 
9850 9X28 
12050 121 


Kuala Lumpur 







-.BamfadV. 14925 

S S' 1 








QflnaUohf - 

»*£ ^ M 

nS 1155 ujg njo 


SsS StM 3450 3450 

16*40 1540 
USD 1130 
5 435 2550 
855 IS 
14J0 U50 
446 438 

352 X44 

955 955 

“1 •£ 
mo 1750 
1IJ0 two 
1820 1750 
1080 1050 


15J0 1430 
TOO 1178 
26 2550 
£75 5J5 

8l60 ■ 060 
1450 1460 
438 438 
M 355 
955 9 JO 

2350 2420 
7 JO 750 
17JP 18 
1?5B 7150 
17 JO 18 

1060 1060 


Bee Mob Con 
Oft USA 
Goz Metro 
Gt-Vrea UfecD 

Labia* Cos 
NaflBk Canada 
Power FW 
CwebeowB z 

44U 4X80 

2560 25H 
34 3130 
3335 3135 
1714 1720 
24 24 

3914 3M 
251a 2514 
1765 1720 
1655 1620 
29 JO 2X35 
2711 26J0 
2511 2411 

8.10 7.90 

5M 5765 

3067 J3 
nerioes: 3839 J3 

4100 44M 
25U 2560 
34 3170 
3335 3130 
1760 njo 
24 24 

3BH 354 
2514. 2514 
1720 1765 
16*20 1655 
29 JO 29 JO 
2180 M* 
2115 2470 
750 8.10 
58.15 586S 








Pan Wa Lin 






X88 (L70 

727 JO 72558 
4860 4660 
57.02 5651 
1660 1630 
48650 40000 
587J0 5B5J1 
46880 45X99 
34000 337 JO 
23100 227 JO 
17250 170X0 
3&18 37 JO 
. IBS 865 
123J0 122X1 
77249 17080 
17750 177X0 
3*69 30111 
4050 4X50 
US U3 
27X0 9SM 


8J8 8J0 
725X9 726M 
4660 47*60 
57X0 £7jQ2 
1650 1650 
480X0 485X0 
567X0 590X0 
460X0 ‘ '• 
22750 22B5B 
170X0 17X00 
37 JO 37X90 
BJ5 . BBS 
12X50 12110 
170X0 773X0 
177X0 178X0 
308X0 30850 
■ 4X90 40X8 
U3 US 
2477 27J» 






Brambles Ind. 

Cotas Mjrer 

Fasten Brew 
Goodman FW 
ia Aostrafla 
Lend Lease 
Nd Mutual Hdg 
POdflc Dunlop 
Pioneer tad 





























Pieimaw 399158 

836 838 M3 

8.12 8.13 821 

18 1BJ3 1UM 
171 174 17V 

71 tb 2320 
1198 1329 1128 
1464 14J0 1465 
42S 622 628 

6-19 623 420 

19X0 19.10 19.10 
470 470 480 

259 25V 259 

165 165 167 

12J7 1X47 1X55 
24 24 24 

1J0 U1 171 
1770 1779 1770 
127 121 1J9 


.... 7.15 .... 

1030 1060 1830 
320 321 MO 

3 47 










Madrid Brim rider 51535 

Maariu pitriees: 51135 

AcntaK 21900 21500 21788 ZIOO 

Den unite Bk 












OSX tadec <0621 
PmtoOB 59854 

169 749 W8 

149 155 14X50 

2X80 2220 2220 
09101 tmo 25 jo 
135 U7 135 
41 4150 4 

353 355 353 

34350 344 34050 

233 237 23450 

111 112 11058 


Aria Poc Blew 
Cantas Pac 

PlWhwe 2*1823 

__j Farm I 
DBS Land 
Fraser*, Meow 

HZ Load* 

670 660 
855 BX0 

t » 12 

10 14,90 
075 073 
1&2B 1770 
422 468 

iuo law 

X22 27S 
5*50 545 
152 346 
470 645 

660 675 
885 825 
1X20 1120 
1420 15 
074 OJU 
17X0 1770 
4X4 466 
1020 lOJD 
X2Z X1S 
545 545 
150 350 
670 635 


Quo Tung B* 
ChtaflDw e hBri 
□ton Steel 
First Braik 
HM NonBk 
5Wn Kong LBe 




Stock Motel MB 12(943 
Prarieun 8117X0 


Cdn Hal Res 



Franco Nevada 
Guff Cdo Res 
Imperial OQ 

IPL Energy 
Laewen Braun 
Maann BUI 
Magna IntIA 

Newbridge Ntt 


Naraea Energy 

Nthem Telecom 









AhHU Price , 24.10 23X5 24 

TSE todesMeta <HU3 
PieriWR 618621 


Trimark M 
Tibet Hahn 

TyXM d 

g gtao tfEny 


•ai iw 
69 JS 














ns 1 

- 24 






v.9 n 








































































29XS 30.10 
47.90 SB3S 
\6¥ KH 
5X20 sm 
.5485 5540 
3110 3140 
6875 6925 
2930 2930 
3235 27% 

2725 7720 
3390 3320 
N.T. 333 
53 5140 
3120 3155 
5655 56 

35 34% 
2720 27.80 
3440 305 

36 36 

2325 2411 

1145 11.70 
28X0 M 
3485 34W 

2340 2345 

39 38** 

299 299 

2955 30U 

23% 2345 
6416 64 

1140 1740 
6325 <3X5 
45 Vi 4X70 
4X55 4230 
1978 19.15 
4328 4170 
19% 1945 
7545 7470 
mo 13 
29X5 2820 
48 4615 
»J0 a 
2m 2BK 
105.10 103% 
11X5 UJS 
24 24 

56.15 5610 
2228 2X90 
24 23M 

14% U15 
115 11145 
3945 39M 

3545 3» 

23X0 2340 
5320 53X5 
57 56 






FMstafen Wton 



93X65 900 923.10 099 

453 45Q7D 453 46055 

31 SO 3105 3130 3109 

156445153250 35S4 1528 

540 50610 531 501415 




858 85630 

VA Stahl 

492X5 408X0 







Wtanerbeig Bau 





Wellington nzsEJoaaeie 2 p< 4 i 

9 PU ita ui: 2 2 77.53 

AJrNZeataJ B 














Batch Ot Brig 



















Llott Ndtian 





Telecom NZ 





Wlbon Horten 






27 JO 







2170 2X10 
30% 3025 
4040 4025 
1520 1570 
2615 2610 
44% 44 

30X0 3m 
840 8.15 

2440 2160 
79% 80 



Adecco B 






BK Virion 

Oha Spec Che« 










Oetfln Bueh R 





Roche Hdg PC 










Zurich AssurR 



































SPIkdwe 317824 
PmtoH: 3127*47 
1799 1808 1795 
,473 475 48750 

1262 1288 1254 
2125 2135 2)40 



. m 



















1870 1870 
3145 3110 
977 963 

1305 UUS 
. 847 848 

17X2S 16775 
534 530 

6125 £120 
<500 4430 
1180 1160 
.483 482 

1842 1806 
IS 1477J 

i ™ 
% 2130 
,227 224 

w 125)0 

327 32650 
™ 1761 
31W 3100 
839 832 

1044 1022 
1000 1746 
1300 1327 

iw 1081 

4B« 485 

PAGE 14 


Monday's 4 PJkl. Close 

Nationwide prices nof reflecting kite trades Ssewtefe. 

■an urn su 

or w k im nan 

UM One M* 

Eh TH PE HU Ugh Law UH OI*| Mgn La* 

PE HfaHfe Lew 

Qrgel Mgfi ^Liw Sta* 3i W 

PS TWWan u» 

DkVMPE mw 

•v Hu 


«: «nrs? 



PAGE 15 



Hong Kong by Web 

Sites’ Views of Handover Vary Widely 

By Seth Schiesel 

New York Tunes Service 

There roust be a reason so many 
of the World Wide Web sites about 
Hoag Kong open with a depiction 
: of that city’s skyline. 

But as the jewel of the British 
■■ Empire prepares to be remounted 

" skyline may be ote o^tfoTfiw 
aspects of the place that will not be 
r changed after sovereignty shifts to 
Beijing on July 1. 

The _ fact that perhaps not 
everything is up for grabs may be a 
comforting thought to Web design- 
ers of all political flavors. 

As a candid and readable essay 
on the American Chamber of Com- 
merce’s Hong Kong site put it “In 
Hong Kong, there is widespread 
cynicism about the real intentions 
and agenda of die British colonial 
rulers in the final days of the tran- 
•Jr sirion. Paradoxically, there is also 
" 1 , concern that Hong Kong will be- 
come a de facto colonial outpost of 
PRC interests, with less autonomy 
than hoped and agreed.” 

The People’s Republic of 
China’s official Hong Kong Web 
sice, when it can be reached, makes 
nte clear its view that the territory 
lould have been part of China long 
i ago and that the early British au- 
theories followed “a strict policy erf 
' oppression to indiscriminately pun- 
ifo Chinese as criminals.” 

T But beyond the flattering portraits 
; it paints of Grina’s designated lead- 
> ers for the new Special Adminis- 
' trative Region, as Hong Kong will 
be designated, and die clock count- 
ing down to foe handover, the most 

interesting thing about the official 
China site is its roster of advertisers. 
Last week, Intel Carp., International 
Business Machines Coip.. Eastman 
Kodak Co., Microsoft Carp, and 
U.S. Robotics Corp. all offered 
“wannest wishes for the prosperity 
of Hong Kong.” Bay Networks Inc. 
and Oracle Corp. went further, 
“commemorating the return of 
Hong Kong to the Motherland.’’ 

Whether or not China is foe 
motherland appears to be of little 
concern to the British govern- 
ment’s Foreign and Common- 
wealth Office, which runs a Web 
site that is almost wry in its attitude 
to the handover. 

Hong Kong’s civil authorities 
are much more enthusiastic. The 
Hong Kong government and trade 
office in San Francisco has a Web 
site that offers a wealth of business 
information and gives the impres- 
sion that foe handover will be little 
more than an administrative detail. 

Likewise, foe Hong Kong Tour- 
ist Association assures visitors that 
English will remain on street signs 
and that visa requirements will not 

The Hong Kong government’s 
information site oners next to 
nothing of foe territory’s history, 
but it includes a long section ded- 
icated to sorting out “mytiis and 
facts” about foe changeover. 

For example, fact 16 says (in 
part) that “public demand for foe 
democratic process to stay on 
course and develop after 1997 will 
be irresistible.” 

But that may not be much com- 
fort to those who fear Chinese rule. 

Emily Lan, a pro-democracy 







china. htm( 



http^/ 997 




index. htmJ 










Hong Kong legislator almost cer- 
tain to lose her job after the 
changeover, runs a site that is half 
personal campaign literature and 
half genera] human-rights ad- 

The Hong Kong Democratic 
Foundation also has a site. 

The Democratic Party and two 
other pro-democracy political or- 
gankations. Frontier and foe Hong 
Kong Alliance in Support of the 
Patriotic and Democratic Move- 
ment in China, among others, run 

Tbe Hem Y«k Tima 

extensive Chinese - language sites. 

Scholarly Web surfers may want 
to visit foe Hong Kong Transition 
Project at Hong Kong Baptist Uni- 
versity. The page is unwieldy, but 
it seems to be a serious sociological 
study of the transition. Those who 
fear academic jargon can visit the 
comprehensive, if sometimes stale, 
transition page run by The South 
China Morning Post or foe excel- 
lent overall guide to news and in- 
formation on China maintained by 
Eric Gosdree. 

Packer Drops Bid for Control of Sydney Harbour Casino 

• Bloomberg News 

- SYDNEY — Shares in Publishing & Broad- 
. casting Ltd. fell 3.7 percent Monday after foe 
j entertainment company said it had dropped plans 
7 jo buy control of Sydney Harbour Casmo Hold- 
ings Ltd. 

r Stock in the media conglomerate controlled by 
Kerry Packer fell 25 cents a share to close at 6.45 
Australian dollars ($5.08). 

“People thought Packer buying foe casino was 
od news; now they are a bn concerned.” said 
)b Currie, investment director at Jardine Flem- 
ing Australia Investment Management 
l Publishing & Broadcasting Ltd. said over the 

weekend it had abandoned the bid because of 
difficulties in dealing with state regulators. 

The company planned to buy foe management 
contract aoaalO percent stake in foe casino from 
Showboat Inc. for 342 million dollars. 

Sydney Harbour Casino would have been Mr. 
Packer’s third business, alongside lus Nine Net- 
work Ltd. television network and Australian 
Consolidated Press, a ma gazine publisher. 

Although the casino is losing money because 
of start-up costs, it will soon be profitable, said 
Jenny Owen, an analyst at MacQuarie Equities. 
Sydney Harbour Casino’s shares closed at 2.16. 


Mr. Packer said regulators had refused to grant 
Publishing & Broadcasting Ltd access to Show- 
boat’s documents on the management agree- 

But although Mr. Packer has canceled plans to 
acquire foe casino, investors say he may bid for 
John Fairfax Holdings Ltd. if the government 
changes laws that limit media ownership. 

Mr. Packer currently cannot take over the' 
newspaper publisher because he owns the broad- 
caster Nine Network- Laws prevent one company 
from controlling a television station and a news- 
paper in foe same market 

Fairfax’s shares closed at 3.25, up 2 cents. 

Stocks Soar 
In Manila 
On Letup 
In Inflation 

Bloomberg News 

MANILA — Government data 
showing that inflation slowed in 
April sent Philippine stocks to their 
biggest one-day gain in nearly three 
and a half years Monday. 

The benchmark Philippines 
Composite Index closed with a gain 
of 130.77 points, or 5.02 percent, at 
2,736.42. after foe government said 
foe annualized inflation rate fell to 
4.6 percent in April from 4.8 perefeni 
in March, mainly because of lower 
rice and corn prices. 

“The main message you’re see- 
ing is that there are stable prices in 
this economic expansion,” Manuel 
Lira, an economist at ING Bank in 
Manila, said 

The government has said it ex- 
pects gross domestic product to ex- 
pand at least 7.1 percent this year, 
compared with 53 percent in 1996. 

An environment of low inflation 
could lead to lower interest rates that 
would spur growth as investors de- 
mand less of a premium to com- 
pensate for the risk of higher prices. 
Inflation erodes foe value of fixed- 
income investments. 

i for lower rates in the future 
even an increase by 
die Philippine central bank in its 
overnight borrowing rate. The rise in 
the rate, to lli percent from 11 
percent, was foe fond in two weeks. 

“You have to look at this as a 
special situation,” said Leslie Lim- 
sico. first vice president at Philip- 
pine Commercial International 
Bank. The central bank probably 
would not have acted so aggress- 
ively, he said, “if it bad not been for 
all these alarmist reports that we will 
be foe next Thailand” 

Stocks fell more than 9 percent 
last week on fears that the Phil- 
ippines faced a property-price crisis 
similar to foe one in Thailand. 

But those concerns appeared to 
have been whisked away try foe new 
inflation data released by the Na- 
tional Statistics Office. Prices of 
food beverages and tobacco, which 
account for three-fifths of the con- 
sumer price index, rose 1.8 percent, 
down from 1.9 percent in March. 
April prices of rice, a staple food 
that accounts for about 13 percent of 
the index, fell 2.6 percent, while 
com prices fell 7.5 percent. 

Investor’s Asia 

Hang Song: 


SraitsThTyeS: -.'; 

' ->22000 

1150 %" j ‘F 1950 'D ■ J 'F ■ M' A tf" ^'D J F M' A 

Exchange " ; index > ; { ' . Monday r 

“ — * — t&i 


./.Straits Times “ 

Tofc*»; / 

V. ■■ CMI 

i Kuala Uimpur Coif^palte.,.^ ‘ 


■SET:-.. ' ' 

•Seoul \..c 



Stock .matfA forte* 


• IixTirtiira ■ . 

t v 




Source: Tetekurs 

Imcnuakmal Herald Tribune 

Very briefly: 

• Tyt Soon Ltd, which distributes automotive parts and 
consumer goods including foods and beverages, expects to 
raise 18.7 million Singapore dollars ($12.9 million) through a 
sale of 59.8 million shares in an initial public offering. 

• Malaysia simplified immigration rules to try to attract more 
skilled workers. Authorities and agencies responsible for cer- 
tain sectors of foe economy were given responsibility last week 
for approving work permits in hope of speeding foe process. 

• Berjaya Group Bhd. was offered 1.20 billion ringgit 
($478 3 million) for its 80 percent stake in Berjaya Singer 
Bhd. It did not identify foe potential buyer of foe company but 
said was not one of the current owners. 

• Cycle & Carriage Bin tang Bhd. said growth in passenger 
car sales by foe Malaysian distributor this year might match 
the 15 percent increase posted for 1996. 

• Bering North Star Co. asked one of its minority owners. 
New World Development Co. of Hong Kong, to help foe 
property company increase its efficiency and profitability. 

• Mondragon International Philippines Inc. resolved a 

dispute with a government agency over its casino license, 
clearing foe way for the company to acquire more gaming 
licenses in the Philippines. Reuters. Bloomberg 

Gold Mine in Indonesia Is Idled 

Agence F ranee -Presse 

JAKARTA — An Indonesian subsidiary of U.S.-based 
Newmont Mining Corp. said Monday it had suspended op- 
erations at a gold mine on the Indonesian island of Sumbawa 
pending the issuance of a government permit. 

Sources said Indonesia wanted a bigger share in the venture. 
Erik Hamer, president-director of the subsidiary. Newmont 
Nusa Tenggara. said the mine had been idled for a week. He 
said Newmont had been waiting six months for foe permit 



AU 06HA1 1t37 
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Capital Markets Development Project 


Loan No. 3999-HR. 

1. This invitation for bids follows the general procurement notice for this project that appeared in 
Development Business Forum of September 19, 1995. 

2. The Ministry of Finance has received a loan from the International Bank for Reconstruction and 
Development toward the cost of foe Capital Markets Development Project and it intends to apply part of foe 
proceeas of this loan to payments under the contract tor Goods. 

3. The Sredisija Depcedfcarna Agenrija (SDA) now invites sealed technical bids from eligible bidders for foe 
supply, ins talla tion and support of automated securities registries, depository, clearing and settlement systems. 
Critical qualification cri teria for prospective suppliers include demonstrated experience in at least two instances 
during the past four years of successfully implementing, on a turn key baas, (Le. hardware, software, installation, 
customization and support services) automated securities registries aria depository systems, using WAN and mid- 
range, multi-serve 1 technologies. The prospective supplier must also demonstrate opiating profits in one of foe last 
two or two of foe last four years 

4 Bidding will be conducted through foe international competitive bidding procedures specified in the 
World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits, and is open to all bidders from eligible 
source countries as defined in foe guidelines. A two stage bidding procedure will be followed. The first stage bid 
will consist of. 

- a technical bid only, without any 
tive solution a Bic 

- any alternative solution a Bidder wishes to offer and technical justification thereof, provided that such 
alternative solution do not change foe basic objective of the project 

5. Interested eligible bidders may obtain further information from foe SDA and inspect foe bidding 
documents at the address given below: 

Ms. Vesna Zrvkovic, General 1 
Ulicagrada Vukovara 70 


Td: 385-1-6127-076 
Ftoe 385-1-6127-384 

6. A complete set of bidding documents may be purchased by interested bidders by May 19, 1997, on the 
submission of a written application to the above address upon payment of a nonrefundable fee of ICn 900 or US$ 15Q. 
Bidders wishing to purchase the Bidding Documents are kindly requested to remit the appropriate amount to foe 
appropriate account number below, and to present the relevant receipt when calling for or requesting the 
documents. The document will be sent by coumer. 

For suppliers from within Croatia, please submit Kn 900 foe following Account ZAP Zagreb 


For suppliers from outride Croatia, please submit US$150 to the following Account HFB-SDA dd. 

30101-620-336 7001-3777928 

7. The first stage bids must be delivered to foe above address at or before 2 pm. on June 23, 1997. Late bids 
win be rejected. Bids will be evened in foe presence of foe bidders' representative who dwose to attend at foe above 
address, at 2:15 pm, on June fe, 1997. 

8 . 


submit a second stage bid. 

9. Second stage bids will consist of (a) updated technical bids incorporation all changes required by foe 
Purchaser necessary to reflect any amendment (s) to the Bidding Documents or revisions to foe technical 
specifications issued subsequent to submission of first stage bids, and (b) foe commercial bids containing complete 
nice Schedules. 

10. Second stage bids must be delivered to foe above office at foe date and time to be announced when the 
second stage bids are invited and will be opened in public immediately thereafter in foe presence of foe 
representative of Bidders who have be® invited to submit second stage bids and who choose to attend. 

11. All second stage bids must be accompanied by a bid security of KN 180,000 or US$30,000 in foe form 
of (a) a cashier or certified check, or (b) a bank guarantee or irrevocable Letter of Credit issued of Credit issued 
by a reputable selected by the Bidder. 





its fouthcomecetive year 
of economic expansion, 
gnwthm gross national 
product ki 1996. 
Business confidence Is 
growing. After 10 yean of 
program, country has 
raised $6.6 bdiion, and 80 
percent of the economy is 
now la the private sector. 
Trade and tovestmeot laws 
are among tire most liberal 
in the region. 

below right, the Paseode 
Roxas in the Makati 

4 :v 

i ;• 

Philippines Now Pilots Solo in Tiger Race 

A February agreement that marks the Philippines “ graduation "from IMF supervision was an important vote of confidence. 

T he Philippine economy grew 6.8 percent last year and 
is exposed to posta 7-73 percent rise this year, putting 
it more firmly on the track of Asia's newly in- 
dustrializing “tiger” economies. 

An important vote of confidence in the Philippines was 
cast in February, when the Philippines and the International 
Monetary Fund reached an agreement that ends almost 14 
years ofTMF supervision over its economy. In the agreement 
the fund's negotiators hailed the government's economic 

The Philippines will no longer have to draw from die 
fund's emergency financing facility. In fact the country has 
drawn only $50 milli on of the $650 million in emergency 
credits to which it had access under the current program. 

An archipelago slightly larger than the British Isles that 
sprawls off the Southeast Asian mainland between Taiwan 
and Indonesia, die Philippines is marking its fourth con- 
secutive year of growth since its remarkable turnaround from 
a decade of debt and political crisis. 

Last year’s growth was led by heavy investments in die 
finance and construction sectors and a rebound in agricultural 
production. Despite a general downturn in semiconductors 

and garments, its top-selling items, export earnings grew 
nearly 18 percent 

Over $40 billion in foreign debt has been rescheduled, debt 
service is down to 16 percent of export earnings (compared 
with 35 percent in 1985), and the country is again able to raise 
funds from international capital markets. Currency reserves 
are at an all-time high of $12 billion. 

Exports and privatization efforts, as well as lower interest 
rates, have resulted in a budget surplus for this nation of over 
72 milli on people. 

The stock market tumbled last week due to concerns about 
banks' exposure in the properly market, which many analysts 
think may be headed for a bust, but Filipino planners feel 
confident that the country’s economic fundamentals are 
strong and that the country will weather the current jitters. 

Foreign in vestment 

Foreign investment, at $6.8 billion, has increased seven-fold 
in die past five years. With its newfound strength, strategic 
location end educated, English-speaking workforce, die Phil- 
ippines hopes to increase its catch of capital now flowing into 

To this end, the coun- 
try's Board of Invest- 
ment, in cooperation with 
the United Nations Indus- 
trial Development Orga- 
nization and the UN De- 
velopment Prog ram , is 
hosting an investment 
forum on June 2-4 that 
will bring together 
Filipino businesses and 
foreign investors. 

Ramos, the reformer 
Fidel Ramos, a West 
Point-trained officer and 

The Manila Hold: 
Grande Dame by tibe Bay 

O riginally built in 
1912, The Manila 
Hotel is deaned one of 
the world’s finest. 

The hotel has been 
aptly referred to by 
many as the “showcase 
of the Philippines 7 ’ and 
the “Aristocrat of the 

Its 510 guest rooms 
and suites command a 
panoramic view of the 
magwlfi wfit ninw of 

the old walled city of 
Yntra nwrafl, histone Rizal Park 
and Manila Bay. An executive 
floor, die MacArthnr Club, 
provides business travelers with 
express check-in and check-out, 
conference room, Gob Concierge, 
free Continental breakfast and 
Other first-class amenities. 

Eight distinet specialty restaur- 
ants offer a varied choice of at- 
mosphere and menus for di nin g. 
The hotel’s sports and health 
complex features tennis and 

A newly nui a v ated room hi Ihe “PhBppines' showcase. 

squash courts, swimming pool, 
sauna, gym facilities and a com- 
plete indoor golf clinic. There is 
also a well -equipped executive ser- 
vices center that provides a wide 

range of services for 
business people. 

A famous setting for 
meetings, parties, re- 
ceptions and conven- 
tions, the hotel’s grand 
Fiesta Pavilion can ac- 
commodate iip to L800 
people. Eight addition- 
al function rooms per- 
fectly meet require- 
ments for seminars, 
cocktails and intimate 
luncheons and dinners. 

The spacious Gallery is 
an ideal venue for art, trade and 
convention exhibits. 

Through the years, The Manila 
Hotel has maintained its excep- 
tionally high standards and hag 
proven its worth not only by rank- 
ing as one of the world’s best but 
also by leaving a distinct mnit in 

A 50 percent Summer Savor 
Disco nut k offered from May 1 to 
Sept. 30, 1997 (except MacArthnr 
dub rooms). 

Fob information and reservations, please contact: 

The Manila Hotel 

/ Real Park 1099 Manila. Philippines 
Tel.; 632 527 0011; fax: 632 527 0022 to 24 
Toll-free number for the United States and Canada: 1 800 9 MNL HTL (1800 966 54S5) 

professional engineer, was elected president in 1992 in the 
country’s first free election in two decades. 

Mr. Ramos has pushed hard for economic deregulation. 
The power Crisis was solved after a novel Build-Operate- 
Transfer law allowed private capital in public utility de- 
velopment. Liberalization of 40 years of foreign exchange 
controls kicked new life info the Philippine stock exchange. 
Relaxed investment laws allowed the entry of foreign 

The country’s privatization program has raised 174 billion 
pesos ($6.6 billion) in revenues over the past 10 years. 
Among the government corporations privatized are the oil 
and gas giant Petron, the landmark M anila Hotel flag-carrier 
Philippine Airlines and the Manila waterworks system. More 
privatizations are on the block. The private sector now 
accounts for 80 percent of the economy. 

“The economy now possesses the potential to grow at 
rates similar to those of its Southeast Asian neighbors,” 
concluded the Asian Development Bank in an April 1997 

UJEflfln Jf-j m * III ^rn^rrmm m g> rtirtT 


to capture mom of the capital now flowing Into Asia 

Government planners also hope to rein in the trade deficit 
— expected to widen as newly revitalized companies spend 
on machinery imports — by wooing more investments and 
boosting agricultural productivity and exports. The country 
registered a surplus in balance of payments of $3.7 billion 
due to the inflow of foreign investment and remittances from 
overseas workers. 

“Structural reforms aimed at making the economy more 
competitive are beginning to bear fruit,” says Cieiito Habito. 
secretary of the National Economic and Development Au- 
thority. Business confidence is growing. Trade and invest- 
ment laws are now among the most liberal in the region. 
Increasing revenues through a comprehensive tax reform 
program — presently under legislative review — is another 
major component of sustainable development. 

Sustaining the momentum 

Mr. Ramos likes to stress that the country's march to 
“tigerhood” has not come at the expense of democratic 
processes. “There's no turning back,” he assures investors 
who have aired some concern over the end of his term in 
1998. The most important reforms have already passed the 
country's legislative process. The Philippine Senate has 
ratified the country's membership in the World Trade Or- 

Much of the optimism about the Philippines is based on 
quickening momentum in Asia as a whole. Although West- 
ern and Japanese investments largely fueled the rise of the so- 
called newly industrialized economies, the Philippines hopes 
to benefit from the fret that these economies are fast be- 
coming investors themselves. The region now has its own 
em e r g ing “dragon” capital market, and the region’s ex- 
panding middle class provides new consumer markets. The 
Philippines has been a very active participant in regional free- 
trade forums, convinced that this time it will “ride the wave ” 
of investment liberalization and new affluence now sweeping 
the Asia-Pacific region. Monica Feria 

1 w ' ' r 

Fact File 

GNP growth: 6.8 percent 
GDP growth: 5.5 percent 

Exports ( merchandise): $20.2 billion (17.6 percent growth) 
Imports (merchandise): $38 J. billion (37.3 percent growth) 
Inflation: 3.5 percent 

Att figures refer to 1996 
Soiace: National Statistical Coordination Board 

Who Will Run 
In ’98 Elections? 

Continuity in economic reform is a key concern in 
the business community. 

W ith tiie Philippines' next presidential election a year 
away, potential candidates are positioning them- 
selves for the race for the country’s top post 
The candidates seeking to take the place ofPresident Fidel 
5 Ramos fall into two main camps: those vying to be “anoin- 
i ted” as his successor and those Imping to lead the fight 
® against the administration's nominee. Several have the power 
bases they need fra the long, hard battle. 

Fra foreign firms with investments in the Philippines and 
for the local business community, the stakes in the May 1998 
election are high. They want to see a president who will 
continue Mr. Ramos’s' strong economic leadership, which 
has led to unprecedented growth over the last three years. 

“Will the economic program and reforms continue? That’s 
a key concern for all of us,” says Guillermo Luz, executive 
director of the influential Makati Business Club. 

While it is still early in ihe long hot Philippine campaign 
season, the business community already has several leading 
political figures in mind as potential candidates. 

Defense Secretary Renato de Villa, who has followed in 
Mr. Ramos's footsteps since the two were military officers 
together, topped a recent 
MBC survey of its members’ 
preferences for presidential 
candidates in 1998. 

Mr. Luz says the MBC is 
not endorsing any one can- 
didate but notes that Mr. de 
Villa, who was named by 
52.4 percent of the execu- 
tives in the survey, is “known 
to be a very sober and steady 
individual. He is an action 
man who gets things done." 

Another cabinet secretary 
vying with Mr. de Villa for 
the president’s “anointment” 
is Finance Secretary Roberto 
de Ocampo, who placed third 
in the MBC survey, with 26.6 Ramos: WhoV get hb blessing? 
percent of respondents listing 

him as a desirable candidate. “In the case of de Ocampo, you 
have someone who is a key member of the team that put 
together the economic policies for success in the 1990s, so he 
reflects a lot ofthe thinking behind the economic reforms and 
so. there’s continuity there," Mr. Luz says. 

Another political leader favored by MBC executives was 
Senator Gloria Macapagal-Arroyo — the daughter of a 
former president — who placed second in the survey with 
38.7 percent 

Political science professor Alexander Magno ofthe Uni- 
versity of the Philippines says the popular Ms. Macapagal- 
Arroyo 's best chance of getting Me Ramos's endorsement is 
if the other candidates fail to capture the public's imagination: 
“Then she becomes inevitable.” 

Other insiders seeking Mr. Ramos’s nod include House of 
Representatives Speaker Jose de Venecia and presidential 
advisor Emilio Osmena, both powerful men in the ruling 
political party. 

Richard Gordon, who as chairman of the Subic Bay 
Metropolitan Authority transformed a former United States 
naval base into a rising economic hub, is also flushing to carry 
Mr. Ramos’s reform torch into the next century. 

Heading the list of those who hope to emergeas the leading 
challenger is Vice President Joseph Estrada, a popular formra 
action-movie hero. Although Mr. Estrada registered poorly in# 
the MBC survey — he was listed by only 3.2 percent of tire 
respondents — he has, along with Ms. Macapagal-Arroyo. 
continually topped popular opinion polls on the presidential 
race for the past year. 

Mr. Magno notes that, while other candidates have 
stronger financial backing, “Estrada is trusted, which is a 
commodity that is very difficult to purchase.” 

Another strong opposition candidate is Senator Miriam 
Defensor Santiago, who as the protest candidate in die 1992 
presidential election finished second to Mr. Ramos. 

Others who hope to challenge the administration candidate 
include Senator Edgardo Angara, leader ofthe largest op- 
position party; Senator Raul Roco, a popular liberal; and 
Manila Mayor Alfredo Lim, a former policeman with a tough 
reputation. Hngh Filman 


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“Built for Business: Philippines” 
way produced in its entirety by 
the Advertising Department of the 
International Herald Tribune. 

Writers: Celia Clarete. Monica Feria, Hugh Filman. 
Nirmal Ghosh. Girlie Linao. Sheila Oviedo. Galili Roma 
and Crisdda Yabes. all based in Manila. 
Program Director: Bill Mahder. 


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t CLARK Plan Mixes " • .. * i 

v ' [W ork and Play &sk 

‘Jhe former V.S. air base is being developed as an ^ 4 \ 

MViation complex and industrial and resort center. *?v : , ••/ L. 

C lark Air Base, buried of the expansion project, 1 

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I/N 1^ Air Base, buried 
;I under six feet of vol- 
• V—X conic ash when 
Itoount Pinatubo erupted in 
*1991, is now green and busy 
^again. Planners say that it 
will be developed into a ma- 
3 or civil aviation complex 
jnd gambling and entertain- 
ment center that will rival 
Macao as a sort of Las Vegas 
of the East 

The base that the United 
States abandoned has been 
transformed into a Special 
Economic Zone, currently 
housing the country’s most 
modem casino, shipped in its 
*• entirety from r^as Vegas, 
among other facilities. To 
feed wtat authorities hope is 
going to be a major indus- 
trial-entertainment complex 
and to compete for regional 
air traffic, the airport is due 
for a dramatic expansion in 
less than 10 years. 


The plan calls for about half 
of the zone's 4,400 hectares 
(10,900 acres) to be de- 
veloped for the Category 
One airport The classifica- 
tion means the airport can be 
used day and night, and in all 
kinds of weather conditions. 
Its twin runways and main- 
tenance outlets will be ex- 
panded to accommodate an 
estimated 15-20 million pas- 
sengers annually by 2005. Its 
land size is about three times 
-that of the Ninoy Aquino In- 
ternational Airport in Ma- 
*~j nfla, which currently has the 
" capacity to service 4.6 mfl- 
fion passengers per year. 

“We are trying to com- 
plement each other, but our 
master plan is to make Clark 
•the premier airport some- 
day,” says retired General 
’Tereso Isleta. chief of op- 
•erations of the Clark Inter- 
national Airport Corp. 

Forthe first of three phases 

of the expansion project, 
about 900 million pesos ($34 
million) have been spent on 
the interim terminal, com- 
munication systems, weather 
equipment and navigational 
guides. The airport has been 
operating since last year on 
chartered and cargo flights 
run by freighters including 
companies like the U.S. ex- 
press-delivery firm DHL. 

Negotiations are under 
way with Malaysian groups 
to build maintenance and in- 
dustrial facilities to support 
the complex. 

Links to Manila 
The transformation of Clark 
also hinges on transportation 
access from Manila. Private 
consortiums have begun ini- 
tial surveys for construction 
of an expressway and reha- 
bilitation of an old railway 
system that would link the 
capital and Clark, located in 
Pampanga province north of 
Manila. Authorities in Ma- 
nila said this might take 
longer than expected, and 
some say the Manila airport, 
which is about to begin con- 
structing a third terminal 
soon, remains a better loca- 

“It is a dream. I'm some- 
times overwhelmed by it,” 
Mr. Isleta says, adding that 
commercial airlines “seem 
indifferent for now” in 
scheduling flights to Clark. 

Industrial center 
The industrial center; man- 
aged by the government- 
owned Clark Development 
Corp. (the aviation complex 
is managed by the airport 
corporation), has about 160 
lease agreements signed with 
investors, among them the 
Taiwanese appliance com- 
pany Sampo Technology, 1 
and Japan's Yokohama Tire ! 
Co. and Kita Corp., which j 

Water, Water Everywhere 
And Now a Drop to Drink 

Two groups intend to overhaul the capitals water and sewerage system. 

A fter years of water shortages, disease supply shortfall of some 800 million li 
outbreaks due to contaminated drink- (211 million gallons). To recover the 
ine supplies and an almost total lack water, die two groups have to repair 


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SI :^ >-**t»**s 

Top: A worker ki a TV-assembly plant h the Clark industrial zone. Above: Clark International Akport 

manufactures Aiwa televi- 
sion sets. 

The biggest attractions are 
the Mimosa resort and golf 
course and a $12 million 
casino, owned by the local 
Mondragon Group and run 
by Hyatt. An estimated 
28,000 jobs have been cre- 
ated altogether, more than the 

20,000 provided by the 
former U.S. Air Force base, 
according to Me Isleta. Last 
year’s profits reached about 
80 milli on pesos. 

A lavish Centennial Park- 
will be opened by the end of 
this year; featuring laser 
shows and miniature islands 
depicting the history of the 

Philippines, which will cel- 
ebrate its 100th anniversary 
in June 1 998. Developers ex- 
pect as many as 30,000 vis- 
itors each day, and they plan 
to turn Centennial Park into 
an amusement park once the 
centennial celebration is 

A fter years of water shortages, disease 
outbreaks due to contaminated drink- 
ing supplies and an almost total lack 
of sewage-treatment facilities, there may fi- 
nally be relief for Greater Manila’s 1 0 million 

Two Philippine c or porations and their for- 
eign partners are laying out ambitious plans 
to rescue die capital's crumbling water and 
sewerage system after winning the massive 
privatization of the utility’s operations in 
January. A group that includes the local 
Ayala Corp., foe United States’ Bechtel Corp. 
and Britain’s United Utilities was awarded a 
25-year water-service concession for eastern 
g Manila, while a partnership of die Philip- 
| pines’ Benpres Holdings Corp. and France’s 
§ Lyonnaise des Eaux won foe right to serve the 
I city’s western district 

S7.5 biRion upgrade 

The transfer of water-service rights for Ma- 
nila from the government’s Metropolitan 
Waterworks and Sewerage System into 
private hands was one of foe big g est trans- 
actions of its kind in foe world. 

The task being tackled is massive as well, 
with at least $7.5 billion in investment 
needed to provide foe Philippines’ capital 
region with water service over foe next 25 
years. Due to the system’s poor condition and 
a lack of facilities, only 66 percent of the 
customers it is supposed to serve currently 
get water, and only half of them receive 
service for 24 hours, MWSS officials say. 

Both concessionaires say foe key task in 
improving the dilapidated service is to reduce 
water losses through an 
enormous upgrading and 
repair pr og ram for die §|&r !a !ffe 
8 aging network’s pipes, 

$ connections, meters and 
g other underpinnings. 

| “The formidable prob- 
* Iem is the feet that today a 
very high percentage of the 
water that is actually pro- 
duced is not distributed to 
the end customers,” says 
Martin Negre, Asia Pacific 
president for Lyonnaise 

The MWSS says the 
water system loses about | p|pp|| Ipf J; 

60 percent of its produc- §|K53'PRflj 
tkm to leaks, illegal con- g | 
nections and defective me- T v ~ 

ters, resulting in a daily A w aste wa te r ba i lment plant 

supply shortfall of some 800 million liters 
(211 million gallons). To recover the lost 
water, foe two groups have to repair or 
replace some 12,000 kilometers (7,500 
miles) of rusted pipes and hundreds of thou- 
sands of faulty meters, as well as locate and 
disconnect illegal taps in the system. 

According to Mr. Negre. Lyonnaise and 
Benpres have estimated that the first five 
years of the western operation will require an 
initial investment of between 12.5 billion 
pesos ($474 million) and 20 billion pesos. 

Antooino Aquino, president of Ayala 
Property Management Corp., says the east- 
ern group expects meter replacements alone 
to cost fiom 200 million to 300 million pesos 
annually over the next three years. 

Once the problem of water loss is solved. 
Me Aquino says, the next task will be to 
extend the existing service to people still 
relying on wells, pumps, rainfall and black 
market sales for their daily supply. 

With only 1 1 percent of homes currently 
connected to the sewerage system, foe two 
concessionaires say foe next priority will be 
to build a modem wastewater collection and 
treatment system that will allow recycling. 

“Right now, you don't have a major sewer 
system in place, and that is not good for foe 
environment,” Mr. Aquino says. 

Both groups hope that by establishing an 
efficient sewerage system, they can bolster 
foe existing supply of clean water in Manila 
while tapping new sources, so they can meet 
the city’s growing needs as its population 
expands over foe next 25 years. 

Girlie Linao & H.F. 


Privatization Laws Are Under Review 

, The government intends to increase pre-transaction consultations so the ground rules will be clear. 

T he Philippines’ government is re- 
viewing rules regulating foe pri- 
vatization process following re- 
1 vo sals of two big contracts this year 
land criticism from the international 
’business community that authorities 
> have failed to recognize the sanctity of 
i contracts. 

1 The criticism began in January when 
I President Fidel Ramos ordered foe re- 
■ bidding of a contract to develop a port at 
1 Subic Bay, a former U.S. naval base, 
I after if had been awarded to a joint 
i ’ venture between Hong Kong’s Hutcfai- 
*4**soo Whampoa Ltd. and Guoco Hold- 
» jpg s Philippines Inc. 

“ In March, the Supreme Court re- 
: versed foe 1995 sale of a 51 percent 
stake in the historic Manila Hotel to 

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: Sheraton. The court instead awarded 
* ownership to Manila Prince Hotel 
■Corp., a Philippine company that 
matched the winning bid later. The 
-court cited a “national patrimony’' 
'clause in the nation’s constitution that 
'•foe court claimed gave preference to 
local groups in the privatization of state 

■ Cielito Habito, secretary of the Na- 
'tional Economic and Development Au- 
-' thority, says foe Supreme Court s ruling 
“increased obstacles” to a key com- 

ponent of the country’s economic re- 
form program “by severely limiting foe 
market to which we are offering foe 
assets or companies to be privatized” 

After foe government lost an appeal 
of the decision to reverse foe award, foe 
Committee on Privatization said the 
Manila Hotel contract was an “excep- 
tional case” and that it would not affect 
foe sale of other big ticket hems in 

“Investors look at foe Philippines in 
general,” says Crisanta Legaspi, foe 
committee’s executive director. “So, as 
a result there are still a lot of investors 
that have expressed interest in many of 
our projects.” 

Mr Habito says foe government will 
make sure the ground rules for future 

sm» r.lfiar to all nartic- 

ipants beforehand in order to prevent 
challenges later. 

“Short of any changes in foe law, the 
main thing available to us at this point is 
really to increase consultations that will 
be precedent to these privatization 
transactions,” Mr. Habito says. 

Mr. Habito also notes that the gov- 
ernment’s joint executive-legislative 
committee is reviewing privatization 
laws to see what changes may be nec- 

Mr. Ramos appears determined to 

prevent reversals in future deals and has 
called for amendments to certain pro- 
visions in foe Philippine constitution 
that he says promote protectionism and 
could hamper the country’s economic 
reform program. 

Ml Habito says the executive-legis- 
lative committee is looking at proposals 
for making foe necessary constitutional 

Mr. Ramos has been vague on what 
specific changes in foe constitution he is 
seeking. He could be seeking to amend 
or strike foe national patrimony clause 
or constitutional prohibitions on foreign 

Opposition politicians and activists, 
however, have slammed attempts to 
a mend the 10-year-old constitution as 
schemes aimed at keenine Mr. Ramos 

in power after his mandated single six- 
year term expires in Juoe 1998. Op- 1 
position leaders claim that any move to 
amend the charter for economic reasons 
would open foe way for amendments 
that could allow foe president to seek a 
second term in 1998. 

The privatization program has gen- 
erated at least 174 billion pesos (S6.6 
billion) in revenues over foe past 10 
years. In 1996 alone, Manila earned 6 
billion pesos ($228 million) from foe 
sale of state assets. GX. & H.F. 




W.' ■ 

Manila Seeks Title as Southeast Asia's Convention City 

• . _ v,« bin tn hpcome the premier convention bone of the city's femed entertainment circuit with Its music 

Manila is ^ ^ Asia Pacific venues, restaurants and casinos. 

cftyin to refurbish The Philippines rushed foe-construction of 21 new villas 

Economic Cooperation f °^ m and upgrade lastyearinfoe new Subic Bsyindu^ 

almost all of Manila s cowenhon sites ^ kilometers northwest of Manila, for foe APEC leaders summit 

of foe country’s Department of 

modem convention facility when It opened in lsr ■ Tourism, Mina Gabor, had planned the “Convention City 

Manila'' campaign in 1995. That year, foe Philippines hosted 
Along Manfla Bay + ^ m ^ofal7(X>acre(690- a total of 17,737 International anti national eventsinvofving 
The convention centers its wnfoe The 902,041 delegates. The tourism secretary expects to reapan 

hectare) complex on re ^ la ^? 1 ^ W( S 1 ptiiiiopinePIazar initial 10 percent to 15 percentincrease in foreign convention 

complex inchidesafiv&starhoteti home of the courtly's activities in 1997-98. 

foe Culture! Cerrter toe Ms. Gabor haslent her department’s m^le^d legatee 

dance and theater arts; using native to local associations blddingto host intentional faring* 

exquisite showcase of new In foe next two years, Manfia will host such J»e n ^asthe 

Ss and materials. ^d Wbrld Congress on Hfc*r 

World Trade Center, which offers more exnioroon mit, the Mayorsofthe World Congress, important meetu^sof 

seminarrooms. . ^ invention the World Tourism Organization and foe 3Gfo Congress of foe 

. Along the bayslde boulevard teadmg tf ^^ fcMan3a international Hotel Association, 
center are many luxury hotels, ^ Twng ?l®!r om neooie in its Next year, there will be festivals and exposition, marking 

Hotel which can accommodate up ^ it into foe Tooth year of Philippine independence from Spain, 

ballroom. The hoteirenovated feenOrelStfi fioo ^ convention campaign, together with more invMfmerrt 

a “businessman's retreat” Incentives for hotel and resort developers, is part of a 20-year 

tourism master plan whose aim is to make this predominantly 
Financial district a number of them Erigllshspeaking archipelago a major tounst and business 




S P( ) N S( ) R I ' D S EC 1 ION 


Philippine Airlines 

1 0^ 

: <* -\1ETR° 

hilipplne Airlines (PAL) is pursuing an ambitious $4 
billion refleeting and modernization program that 
will give it the distinction of having the youngest 
fleet of sophisticated aircraft in all of Asia by 1998. 

: The program involves the acquisition of 36 new state- 
of-the-art aircraft and the phasing out of old members of 
its 54 -strong fleet. Estimated to cost some $3.2 billion, 
the re-fleeting includes 28 Airbus planes from Airbus 
Industrie of France and eight Boeing B747 (Series 400) 
aircraft, which will be equipped with In-seat video 
screens, satellite telephones and a business center with 
fax facilities. 

• Inflight amenities will also include 180-degree re- 
clining First Class seats with built-in channel selectors for 
music, movies, TV and videos. PAL also has an option to 
buy 12 more airplanes from the two manufacturers by the 
turn of the century. 

- Computer upgrading, the retraining of pilots and the 
improvement of ticketing and flight-scheduling systems 
are also underway. This massive overhaul in such a short 
span of time is considered an industry milestone. Now in 
its 56th year of service, PAL aims to win back the 
leadership it once had as "Asia’s first airline." 

PAL’s revitalization was kicked off by the Philippine 
government’s move to begin privatizing its flag earner In 
the late 1980s. The government withdrew its partic- 
ipation in the ailing airline gradually. In fact, it remained 
the controlling block until late last year, when the com- 
pany's capital structure was increased from 5 billion 
pesos to 10 billion pesos ($190 mi!lion-$380 million). By 
waiving its preemptive rights on the new shares, the 
government allowed a shift in equity distribution. 

After a heated ownership struggle among members of 
Manila’s elite business community, PR Holdings, a gjroup 
controlled by Filipino tycoon Lucio Tan, emerged with 55 
percent ownership. PAL is now a private corporation, and 
all systems are go. 

employees. Employees poured in over 23 million pesos 
by the end of the subscription period. 

increased capital stock 

Early this year, the airline again increased its capital 
stock, from 10 billion pesos to 20 billion pesos, setting 
the stage for a major relaunch. 

The new management has also settled a labor dispute 
with the airline unions. The settlement includes an Em- 
ployee Stock Option Plan offering 95 million unsub- 
scribed shares (valued at about 477 million pesos) to Its 

Fleet upgrade 

The refleeting program, which began in 1996, is now 
proceeding in earnest. Boeing recently delivered a new 
Boeing 747-400, the airline's fourth, and it was im- 
mediately commissioned for transpacific flights. A new 
Airbus was pressed Into European service just last 
March. Sixteen new aircraft are expected this year. 

The high level of similarity in cockpit instruments and 
engine design among various Airbus models will make It 
easier for the airline to train personnel. This “onefamfly" 
advantage will also help PAL save money on spare parts 
holding and maintenance. 

PAL hopes to see delivery of one new plane a month 
starting in June, and to receive three in November. 
Between 1998 and 1999, PAL will receive seven more 
ultra-long Boeing 747-400s. 

Jose Antonio Garcia. PAL’s president, says the airline 
is also talking to British, Canadian and Brazilian groups 
about replacing PAL’s smaller fleet of 737s and Fokker- 
50s in order to upgrade domestic lines. 

PAL is also setting aside 1.5 billion pesos for art 
Integrated training facility. The facility will retrain not only 
pilots for the upgraded aircraft but also cabin, grounct 
maintenance, engineering and catering-service person? 
nel. PAL is replacing aged mainframe computers in a new; 
Data Center, renovating ticket offices aid refurbishing 

airport lounges. . _ ■ nil . j 

With the ownership and labor issues settled, PAL has. 
improved its credit standing. When it sent out invitation^; 
to various international groups early this year for -the 
financing of 13 new Airbuses, it received 11 offers 
amounting to more than $5 billion. «• 


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Today, A new Sun Rises. 





Philippine Airlines 


A wider global network -- 

Philippines Airlines' modernization blitz. wiH allow. the, 
airline to expand its international route network, including 
new points in Canada, the U.S. East Coast China! 
Indochina. Israel, Kuwait Oman, Jordan; India, Souths 
Africa, Eastern and Southern Europe, and Scandinavia^ 
as well as cities like BeQing, Chicago, New York,' Rome,, 
Amsterdam, Barcelona and Zurich. Newly inaugurated; 
runs are Manila-Vancouver-New York and Manila-Seou^ 
Los Angeles. Negotiations are under way to establish a 
Manila-Shanghai flight a 

At present, PAL flies to 32 points in 20. countries, 
including Honolulu, Los Angeles, San Francisco, New" 

York and Vancouver in North America; Brisbane, Mel- 

bourne and Sydney in Australia; and Frankfurt, London^ 
and Paris In Europe. - . " 

In the Middle East, where PAL ferries thousands of 
Filipino overseas workers, the airline lands in Dhahrari,- 
Dubai, Jeddah and Riyadh. 

In its home region, Asia, it flies to 19 points,- arrionf£ 
them Bandar Seri Begawan, Bangkok, Fukuoka, Ho Chi; 
Minh City, Hong Kong, Jakarta, Kaohsiung, Kota Kirv; 
abalu, Kuala Lumpur, Labuan, Manado, Osaka. Port 
Moresby, Pusan, Seoul, Singapore, Taipei, Tokyo and; 
Xiamen. j 

In the Philippines, PAL operates flights to 37 domesfifc' 
points, linking the archipelago's 7,100 islands, which 1 
straddle the South China Sea and the Pacific Ocean off 
mainland Southeast Asia. - - v 

Throughout its domestic network, PAL averages 160' 
departures daily, ferrying over 11,000 passengers ancP t ^ 
180 tons of cargo. It employs 13.460 people, among' f ’_. 5 
them 599 pilots. * 

PAL runs catering services and ground handling ser-: 
vices for most of the 29 international airlines presently 
calling at Manila, it does maintenance contract work for 
the Philippine Air Force and flight training for other air- 
lines. PAL also runs its own aviation school. ‘ T 


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A smite for every mBe Z- 

lm proving customer service is another main feature of 
PAL's modernization program. 

Recently, PAL launched PALsmiles, a new mileage 1 
program that will allow its international passengers to 
-accumulate more- fre- 

Phffippmo AirBnos 

is now a private 

a now vision 

and battSocgy: 

‘Asia's mat. 

quent-fiier points and 
enjoy more convenient 

First-class passen- 
gers earn the equival- 
ent of 150 percent of 
actual miles flown; 

business class pas- corporation wtiti 
sengers earn 125 per- 
cent of actual miles 
flown. Full-fare econo- 
my points are figured at 
100 percent of miles 
flown, and promotional- 
economy miles Eire tal- 
lied at 50 percent Pas- 
sengers can start re- 
deeming awards after 
reaching 25,000 flown 
miles. (This is lower 
than many other fre- 
quent-flier programs; many set minimum mileage at! 
30,000 miles). Another advantage not found in many 
frequent-flyer programs is that PALsmiles awards — such 
as free flight tickets, hotel accommodations and up;, 
grades — can be given away to relatives, friends or 
associates. The PALsmiles member- is also free to 
choose whatever destination his accumulated mileage 
rewards can cover. 

Jose Antonio Garcia, PAL's president boasts that 
PALsmiles is "likely to be the most generous frequent-, 
flier program In the industry." It is part of the airline's 
renewed campaign to conquer fresh markets worldwide: 
"We will soon be in a position to compete. We will have 
not only new aircraft and more direct flights, but also 
excellent cabin service and outstanding passenger conv 
fort” he adds. 


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New hope, new challenges 

Philippines Airlines is out to recover what It believes is its 
rightful position as the premier Asian airline. 

The airline began operations in 1941 with one Beech 
Model 18. Although its two initial planes were destroyed ' 
during World War II, it was back in the air with five twirvi 
engine Douglas DC-3s In 1946. 

In July of the same year, PAL became the first Asian' 
airline to cross the Pacific. Regular service between 
Manila and San Francisco started on December 3, 1946, 
and on May 13, 1947, PAL opened a route to Europe?:' 
Turbulence in business and the Philippine economy as cf 
whole eventually caused PAL to lag behind its more' 
prosperous rivals in Asia. Now the company has a net* 
vision and battle cry; “Asia’s first, Asia’s best” 

The upturn in the Philippine economy, spurred largely" 
by the restoration of political stability and the institutioff 
of a more liberal and open trading and investment re- 
gime, spells increased business prospects -for pal. Eco-' 
nomlc growth rates in Asian countries are among the' 
highest in the world. Business travel and tourism have" 
been increasing at a fast clip. 

Last year, the largest growth in air passenger traffic ' 
was recorded in the Asia-Pacific region, where 377 million 
people passed through airports. By 2010, Asia is ex- 
pected to account for half of the world's air traffic ' 

The trend toward increasing deregulation, however : 
means that PAL will have to struggle on its own home-' 
ground with increased competition both from new do-' 
mestic airlines and, due to liberalized airline landing 
rights, international airlines. & 

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"It may be a blessing.” says the new pal chairman 

Lucio Tan: It forces us to continually review what we dc 

and to speed up our development process.” 

The turnaround has just begun. After 56 years and* 
with new leadership and vision, the airline now has a real 

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lose to 10 million people live in 
Sprawling Metro Manila, qual- 
ifymg it for a select list of the 
world’s raegacities. Coping with the 
problems that accompany the label is a 
tough job — notwithstanding and in 
feme cases even because of newfound 
economic growth. 

Moire cars 

That growth has pin: more cars on the 
capital's streets than ever before, for 
ocaptple. Automobile retailers reported 
sales growth of over 20 percent for most 
of last year; this year, growth has 
f slowed somewhat but remains sturdy. 
T ' A population double what it was in 
1990 struggles to commute each day 
through masses of vehicles and air 
t&avy with pollution. About half a mil- 
lion people in some 200,000 vehicles 
travel to work every day in Makati, die 
city’s business district, from other parts 
of the capital. 

' Across the city, the singe in vehicle 
ownership and use has increased die 
contribution of auto emissions to air 
pollution from 60 percent in 1979 to 90 
percent last yean 

BaUding boom 

m Makati, dozens of gzant cranes pro- 
trude above the skyscrapers like latter- 
day dinosaurs in an urban jungle. Many 
areas have become huge construction 
lots, feeding a real estate market that has 
boomed over the last three years — and 
($uld be heading for a plateau if not an 
outright bust; according to analysts 
11 Crane rates in the capital are also 
fyig h, making up more than half of total 
crimes in the country. Slum commu- 
gmties located alongside dangerously 
pbfluted drainage creeks — the result of 
tnass ruraLto-inban migra tion — are a 
fertile breeding ground for crime. Less 
than half the capital’s homes have in- 
stalled sewerage; an equal number do 
not have a regular water supply. ' 

Making Manila pleasan t again 
The city's woes are formidable. But a 

Homegrown Banks Ajdapt to Compete 

While foreign banks concentrate on corporate accounts, local banks target consumers and small firms. 


Construction ofhigtHise offices and fuxicy condomtofcjns in Marta. 

city. By die turn of the century. Metro 
Manila may be pleasant again. The key 
is a privatization program that has 
served as an example to many other 
developing countries. 

Though the government has more 
cash now than it did in the wobbly 
1980s, at die beginning of die 1990s it 
realized that it could not hope to foot the 
bill for the infrastructure needed to 
make economic growth sustainable — 
and living conditions tolerable. For the 
capital alone, the projected cost runs to 
more than $20 billion. 

under way that, ptanoors hope, 
wBSngovewtthocHy. The key is 

served i 

In response, the government worked 
out a system that has succeeded in 
roping in a stellar cast of mnltiimtinrifll, 
regional and local companies to work 
on Metro Manila Together, they are 
partially bridging the financial gap. 

Water supply 

This year, in Asia’s biggest privatiza- 
tion of water supply and distribution, 
the government split the Metro Manila 
system into two parts and awarded the 


Philippine 4ir£» 
is now a prim 
corporation wft 
n now vision 
mnd bmttiecry. 
••Asia’s first 
Asia's bast" 

series of major projects are under way . halves to two consortiums in deals 
tfeat, planners hope, will reinvent die worth $7 billion. 

Within a year, the consortiums (Ay- 
ala Corp. with Bechtel Coip. of the 
United States and United Utilities of 
Britain; and Benpres Holdings with 
France’s Lyonnaise des Eaux) will be- 
gin to supply more Metro Manila res- 
idents with regular water. Sewerage 
coverage and treatment will be sig- 
nificantly expanded as well. 

A campaign to clean up the heavily 
polluted 24-kilometer (15-mile) Pasig 
river is being spearheaded by First Lady 
Amelita Ramos — and is showing slow 
but sure results. Cleaning up the dozens 
of drainage creeks and Manila Bay it- 
self is another matter, the government 
currently does not have die funding nor 
the organizational resources to do so. 

New roads and mass transit systems 
Chief among the projects lined up are 
mass transit systems and new roads. 
Mitsui, Siemens, GEC-Alsthom, 
Bouyges, P.T. Citra Persada. Marubeni, 
Ayala Land and Benpres Holdings — to 
name a few corporations — will over 
the next t hr ee years upgrade die cap- 
ital’s single light-rail transit line and 
construct four more, build an elevated 
‘"Skyway” road and either expand ma- 
jor highways linking Manila with its 
hinte rland or build three new ones. 

Several of the infrastructure projects 
are already under way. In the short term, 
they will add to traffic problems — 
lanes are already closed on major ar- 

In the long term, however, the cap- 
ital’s residents like to believe the ad- 
ministration’s promise that tfifngg will 
be for better. Nirmal Ghosh 

ince the Philippine government 
opened the banking sector to 
greater foreign competition three 
years ago, outside banks have hardly 
overrun the multitude of local insti- 
tutions. But the Philippine banking in- 
dustry has been in a state of transition, 
with foreign banks seizing a growing 
share of loans and pushing the local 
operators to transform themselves into 
more efficient responsive and even 
friendlier establishments. 

To protect local institutions and allow 
Sthem to adjust to foreign competition 
-after the banking sector was opened in 
1 1994, foe government limited foe num- 
iber of new foreign entrants to 10 and 
restricted them to only six branches 
each. The 10 new entrants began to set 
up their operations in 1995 while four 
other foreign-owned banks, which 
came into the marketplace years before 
there had been restrictions on outside 
institutions, were permitted to maintain 
their presence. 

The liberalization law permitted oth- 
er prospective foreign operators to es- 
tablish themselves in the Philippines by 
acquiring up to 60 percent of an existing 
local bank or setting up their own 60- 
percent-owned subsidiary. 

Because of the limited number of 
branches they were allowed, their 
strong capital resources and interna- 
tional experience, most of foe foreign 
banks have so for focused on corporate 
accounts. "‘The corporate accounts are 
obviously going to be attracted to foe 
kind of servicing that they will get from 
foe foreign banks,” says Jasmine Juan- 
ico, an analyst at Manila’s Anscor 
Hagedom Securities Inc. 

“The foreign commercial banks have 
access to offshore funds, and to some 
extent some corporates have been 
sourcing their funding through these 
channels,” adds Diwa Gmmgundo, di- 
rector of economic research at foe Phil- 
ippines’ central bank. 

Central bank figures show that for- 
eign banks already account for about 10 
percent of total loans through the Phil- 
ippine banking system despite foe fact 
none have set up all their branches. 

With strong competitive pressures 
from the new entrants to the market- 
place, the long-protected local banks 
have been forced to update and refocus 
their operations. Most are now con- 
centrating more on attracting consumer 
accounts. “They admit that competition 

Local banks are strivtog to become more responsive, more efficient— and trienger. 

is really hard for corporate accounts, 
and that’s why they're being active on 
the consumer side;” Ms. Juanico says. 

Both large and small banks are in- 
creasingly looking for new business 
from foe burgeoning middle class, 
which is becoming a more significant 
market segment as economic growth 
'brings higher incomes. To attract 
middle class cons umer s, the more than 
30 local banks have been offering better 
loan packages for cars and houses, in- 
creasing their number of branches, 
computerizing their services and adding 
more automated teller machines, ana- 
lysts say. 

Branch networks have grown by 
more than 10 percent over each of foe 
last two years, central bank figures 
show. And consumers are seeing foster 

processing times for bank services, 
lower transaction costs and longer loan 
repayment periods. 

“You can now get a 10-year mort- 
gage for a house, which in the past you 
would never see,” says Mike Oyson, 
senior investment analyst at Deutsche 
Morgan Grenfell Philippines Inc. 

Mn Oyson notes that more banks are 
also focusing on small a nd medium- 
sized enterprises, which in foe past had 
shied away from borrowing from the 
banks. “In foe past, when interest rates 
were hovering at about 30 percent, busi- 
nessmen were averse to borrowing 
from foe banks,” he says. “With interest 
rates now hovering slightly above 10 
percent, most of foe business axe now 
open to borrowing from foe bank or 
leveraging their balance sheet” ELF. 

Phiuppine Airlines Seeks Funds for Expansion 

Philippine Airlines (PAL) is making a determined bid to re- 
launch ftsetf as a major Asian airline after years in the red. 

To finance its ambitious $4 billion reflecting and mod- 
ernization program, the Philippine flag carrier has announced 
plans to quadruple its capital stock, sought loans fipma 
international finance consortiums and forged new alliances 
to expand aircraft maintenance services In the region. 

$985 maflon needed this year 

Armed wttti new private leadership and prospects of to- 
creased growth to Asia, PAL reported that It has already 
received 11 offers from various international finance houses 
amounting to more than $5 billion. 

The company needs $985 million this year for the ac- 
quisition of 13 aircraft from Airbus Industrie. PAL hopes to 
acquire up to 36 new planes in the next three years. . . 

A consortium of Banque Indosuez/lndosuez Airfinance 

Asia Co., Ltd., the Development Bank of Stogapore and 
Krecfitbankwifl arrange aid underwrite the french and British 
portions for the financing of four A34O300 and five A330- 
300 Airbuses. A corresponding German portion will be un- 
derwritten by the Bayerische Landesbank and Kreditanstatt 
for Wtederaufoau (WW), structured in lOyear or 12-year 
facilities and supported by European Export Credit Agencies 
and associated commercial facilities. Overall arranger and 
agent for the transaction is todosuez Airftoance Asia. 

Marubeni Corporation has been tapped to arrange and 
underwrite the financing of three A320-200 planes, and WW 
fix one more A320-200 jet Credit Lyonnais is acting as 
financial adviser for the project 

Joint venture with G.E. 

Meanwhile, PAL has entered into an agreement with General 
Electric Company to jointly venture Into aircraft engine ser- 

vices in Asia. The project is expected to generate about $200 
million in annual revenues fix the airline in the medium term 
and to create high-technology job opportunities. 

The Joint venture, inked last October, is the first in local 
aviation history. The project will operate from PAL’s ^hectare 
(12-acre) maintenance facility at the Ninoy Aquino Inter- 
national Airport in Manila. It will cater to the needs of PAL as 
well as other carriers In the Philippines and Asia. Services will 
be expanded as demand increases. 

At present, PAL holds certificates from the U.S. Federal 
Aviation Authority, the British CM) Air Authority and the Neth- 
erlands RLD for the repair of their respective aircraft It 
performs maintenance work for other airlines, the Philippine 
Air Force and civil aircraft operators. 

PAL also performs catering and flight-training services for 
other airlines. 

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Will Real Estate Go Bust? 

Developers say they are shifting to markets where there is room for growth. 

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ears that foe Philippine 
real estate market 
could be heading to- 
^yard collapse within the next 
— rtyo years have led many in- 
vestors in property issues on 
' foe country’s stock exc h a nge 
to pall back in recent 

' Last week the central bank 
"• • K '' ’ restricted banks’ real estate 
■ lfaifong to 20 of their loan 

pjjrtfeKos oc.less, and foe 
Manila' stock mar ket index 
fell to a 16-month low. 
f<r istf ' Anal ysts say foe time has 
"* "'yief' came to let go, predicting that 
■-* j 1=40 foe local real estate industry 
t --. ft doomed because of an in- 

. oversupply- They 

, W Rbint to foe recent property 
.#» bust in Bangkok as an ex- 
ajnple of what could happen 
m Manila. 

1 There is now a widening 
chasm of opinion cm the issue 
fo the industry: While many 

Analysis maintain that prop- 
erty is going bust, developers 
ray foey are &r from 
cfcomed. . . 

The tea! estate industry 
las been .booming in recent 
years, especially since 1993, 
when President Fidel 
femos’s economic reform 
prog ram began producing 

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,\ v m Program oc&m 
■ ■’ ^ strong growth. 

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a local investment 

estimates that land 

prices in Manila have grown 
by an average 56 percent a 
yfcar since 1987 — wifo 
property prices in its main 
-* — districts, Makati 

and Ortigas, rising by 3,000 
percent over that period. 

“Property prices have 
gone up because they reflect 
a tight mariret We haveprac- 
tically a zero percent vacancy 
rate,” says Jose Maria Sal- 
cBtfa, head of Philippine re- 
search for Switzerland's 
SBC Warburg, an interna- 
tional investment company. 

^ ■■lift*** 

uudotidn that property 
I* g oi n g b us t, 
d m topo n **y ti**y 

am far from doomed. 

With construction taking 
place in Makati, Ortigas, Ma- 
nila's Fort Bonifacio and oth- 
er parts of foe capital foe 
property sector may have 
reached its peak, however. 

Mt Salceda warns that by 

next year, new properties 
coming onto foe market 
could push foe vacancy rate 
to 10 percent. 

All Asia projects feat by 
foe year 2000 , supply of 
high-rise residential units 
will exceed demand by 211 
parent, while supply of 
commercial developments 
will oogiace demand by 142 
p ercent ; 

Despite such dire predic- 
tions, 'most developers say 

foey don’t think foe glut wiB 

be as had or begin as soon as 


While many developers 

admit there is going to be an 
oversupply in office budd- 
ings by 1999, they argue that 
there will still be room for 
growth in other real estate 

Francisco Licuanan, pres- 
ident of Ayala Land Izzc_, the 
country’s leading developer; 
says there are at least three 
promising sectors feat can 
make up for a slowdown in 
high-rise development — in- 
dustrial estates, low- and 
middle-income housing and 
leisure-related projects. “We 
are discovering new niches in 
the market,” Mr Licuanan 

To prepare for a glut m the 
business market, Ayala and 
other developers are cutting 
high-rise commercial proj- 
ects and shifting to foe more 
promising sectors. 

To cut down risks, Ayala 
has adopted an internal 
policy of not having more 
than one unsold budding of a 
specific type at one time, Mr. 
Licuanan says. 

Another developer. Mega- 
world Properties and Hold- 
ings Inc^ says it has slashed 
its coital expenditure budget 
by 30 percent to reflect foe 
“ financ ial prudence” neces- 
sary for foe times. 

Developers have also be- 
come more creative in search 
of new markets. More and 
more companies are spend- 
ing billions of pesos to de- 
velop resorts, golf courses 
and other special projects. 

SheDa Oviedo & ILF. 

Subic Bay to Develop Deepwater Capacity 

When the Philippine government took over 
the American naval base at Subic Bay in 
1992, it received a prime piece of real estate 
approximately the size of Singapore with an 
intact and running Infrastructure — and con- 
verted It into a free port 

It was slow going at first Though Subic 
was an attractive place fix investors, the 
Phifipptoes was not But in 1994 the country 
began showing signs of a robust economic 
revival, and investors begjan trickling In, some 
finding their way to the picturesque, shel- 
tered bay north of Manila. 

Today, the former military 
base has been tiansfixmed Jhofmo /ort 
into a hive of activity, with 
more than 191 operational 
investors generating over 
$114 million worth of ex- 
ports in the first three 
months of this year atone — 
up from some $83 million to 
the same period last year. _ 

More than 40.000 Jobs with Hong Koog 
have been created — more 
than were tost when the 
base was relinquished by for big 

Goods from Subic’s free 
port are often trucked to Ma- 
nila for shipment from the capital’s port 
Increasingly, however, ships are calling di- 
rectly at Subic's deepwater harbor to lift 

This is a turnaround from the early days, 
when investors and shipping lines were 
trapped in a chickehandegg situation: There 
was not enough cargo to make ship calls 
worthwhile, and investors were forced to 
truck their products to Manila even though 
they were only a few yards from a natural 
deepwater harbor. 

The free port administration wants to cap- 
italize on this asset and devetop the port as a 
deepwater hUb competing with Hong Kong 
and Singapore for big vessels in the 8,000- 
10,000 TEU range. (THU, or twentyfoot equi- 

valent unit, is the standard measure of full- 
size containers.) 

“This port is capable of handling thefuture 
generation of vessels,” says the port's 
deputy administrator, Ferdinand Hernandez. 

The Subic Bay Metropolitan Authority 
(SBMA), which runs the free port, had a 
setback last year when, after a competitive 
bkkfirg process, the contract for the de- 
velopment of a container port and related 
facilities with Hong Kong's Hutchison Ports 
International was canceled and a rebidding 
exercise ordered by Presi- 
dent Fidel Ramos. 

Mr. Hernandez is confid- 
ent that the second bidding 
exercise and award process 
vritt be over by the end of the 

"The objective is to make 
Subic a transshipment 
hub,” Mr. Hernandez says. 

He notes that the sus- 
tained economic growth of 
China will need to be sup- 
ported by growth in shipping. 
Other ports, like Hong 
Kong’s, are nearing the lim- 
its to then- capacity, and 
shippers will soon have to 
took for alternatives. 

Once Subic's port is developed and ship 
calls become more frequent, exporters from 
all over the country will be able to use Subic 
as a shipping and transshipping hub, saving 
them, in Mr. Hernandez’s estimate, $1,000- 
$2,000 per container over the cost of ship- 
ping through Manila. 

The port 's also trying to attract exporters 
from outside the free port area in central 

"We want toderetopourown caigobased 
volume, plus the volume of centred Luzon. 
Then we will start to bring in big vessels. We 
guarantee streamlined procedures, no bu- 
reaucracy, no red tape,” Mr. Hernandez 
says. N.G. 

2-4 June 1997 
Hotel Inter-Continental 
Metro Manila, Philippines 

One on One Discussions with 
Joint Venture Partners 
on Investment Projects 

• Agri-based products 

• Metal Products 

• Pulp and Paper 

• Chemicals 

• Giftware 

• Construction Materials 

• Industrial Infrastructure 

• Tourism 

For further details, please contact: 

The Director, UNIDO Investment Services 
Attn. Ada Pacific Unit 
P-O. Box 300, A- 1400 Vienna, Austria 
Phone: (43-1) 21 13! .5320/4829 
Fax: (43-1 ) 21131.6806(6808 

The INVESTMART ’97 Secretariat, Board of Investments 
385 Sen. Gil Puyat Ext, M akati City, Phils.. 1200 
Phone: (63-21 896-7884/895-8322/896-7342 
Rh: 163-2) 895-8322 
Internet Address: http^/www.sequeLnet/-diiboi 

CTi7fl{j l 

PAGE 18 

Ori HtlgnaVBaiiai 

Wang Nan returning the ball 
to Deng Yaping on Monday. 

Swede Regains Title 

TABLE tennis Jan-Ove Waldner 
won back the world single title 
Monday by defeating Vladimir 
Samsonov, 21 , a surprise finalist, in 
straight games. 

Waldner, who also won the title 
in 1 989, beat the young Belarussian 
21-12, 21-17, 21-13. The Swede 
became the first player to win back 

the men's single due since Ichiro 
Ogimura in 1956. 

Orimura in 

Wal doer's victoiy prevented a 
Chinese clean sweep of the World 
Championships. China was defend- 
ing all seven titles. 

Earlier, in the women's- singles 
final, Deng Yaping of China beat a 
compatriot. Wang Nan, 12-21, 21- 
8, 21-11. 21-10 to win her third 
women's singles title. 

Deng, 24, has won every major 
event. She made errors against 
Wang, a lefthander, in the first set 
but then took control. (AFP) 

Blackmar Wins Playoff 

golf Phil Blackmar birdied die 
first hole of a playoff with Kevin 
Sutherland to win the Houston 
Open. Blackmar, whose last vic- 
toiy came in 1988, put his second 
shot of the playoff Sunday 3 feet 
from the pin and made his birdie 
putt after Sutherland was short 
from 15 feet. (AP) 

Unsettled, bat a Champ 

terms Marcelo Filippini of Ur- 
uguay beat Jason Stoltenberg 7-6 
0-2), 64 for the AT&T Challenge 
championship in Duluth, Georgia. 
The victory Sunday was worth 
$43,000 for the unseeded Filippini, 
who had won $38,655 thus far this' 
year. - - (AP) 

First Black Remembered 

SOCCER Arthur Wharton, the 
world’s first black professional 
player, will be commemorated at a 
service Thursday in Edlington. Eng- 
land Wharton played for Preston 
North End in the 1 886 FA Cup semi- 
final. He was an exceptional crick- 
eter and held the world record for die 
100 yards. He was buried in an un- 
marked grave in Yorkshire in 
1930. (AFP) 

Bowe Outhit by his Sister 

BOXBflG Riddick Bowe, the 
former heavyweight champion, has 
filed a police report alleging that his 
sister assaulted him. A Washington 
TV station reported Sunday that 
Bowe and his sister sustained split 
lips in a domestic dispute. (AP) 





TUESDAY, MAY 6, 1997 

World Roundup 

Malone Scores 23 in Utah Victory 

Compiled by OtrSbgFiam Dispatches 

The Salt Lake City ordinance — call 
fouls on Shaquille O'Neal — ■ was ad- 
hered to as the second round of the NBA 
playoffs opened in Utah. 

The Los Angeles Lakers’ center was 
rear-ended Sunday by three sumo wres- 
tlers (Greg Ostertag, Antoine Carr and 
Karl Malone) when he was playing of- 
fense, and on the other end he was 
whistled for every single reach-in and 
then some. 

Five fouls later, the Lakers had a mere 
shadow of their former center, and their 
go-to guy turned out to be a teenager. 
With Game 1 of this Western Con- 

ference semifinal series on the line, the 
rookie Kobe Bryant was hoisting 18- 
footers, and that explained the Jazz's 
93-77 victoiy. 

Also, the Lakers had just one day off 
after e liminatin g Portland on Friday 
night, while the Jazz had a week off after 
beating the Clippers. 

“They were probably a little bit 
tired,*’ said the Utah coach, Jerry 

Malone offered his thoughts on 
O'Neal’s play: “He did not have the 

quick spring he would normally have. 
He normally gets quicker shots up 

He normally gets quicker shots up 

Los Angeles had a chilly second 
quarter, and its shooting turned Arctic 
from there on out The Lakers shot 21 
percent in the second quarter (5 of 24) 
and 4 of 17 (including three 3 -pointers) 
in the fourth quarter, and that is what 
happens wheal O'Neal is not making 

Nick Van Exel was the Lakers’ only 
accomplished scorer, with 23 points, 
and O’Neal managed 17 points on 6-of- 
16 shooting in 39 minutes. He averaged 
33 points in the Portland series, but the 
Blazers' Arvydas Sabonis had no help, 
while Ostertag had plenty of support 
guarding O'Neal. 

Malone had 23 points and 13 re- 
bounds on what was an off day for him. 
He shot only 9 of 21, stared down the 
officials all afternoon, and chipped in on 
the tag-team of O’Neal. 

Ostertag finished with eight points 
and seven rebounds, and also blocked 
two of O’Neal’s shots. 

Hie Lakers trailed by 12 at halftime, 
inched as close as 5 points, bat could not 
shoot straight and never challenged 
again. They shot 34 percent on the 

The referees were whistle-happy and 
the technical fouls arrived in waves. 
None of fee superstars was spared. 

The first technical went to Malone, 
who in the process of dunking in the first 
quarter felt he was kneed in fee back by 
Van Exel. After he flushed his dunk, he 
punched the ball and was called for 
delay-of-game by the referee, Eddie 

Malone yelled in Rush's face, was 
given his technical foul and continued his 
debate. Most players would have been 
ejected by then, but Rush — probably to 
avoid a riot — swallowed his whistle. 

The next technical, a minute later, 
went to Sloan. Then, two big men, 
O’Neal and fee Jazz's Carr, were sep- 
arated and given technical fouls for el- 
bowing. The teams then got down to 

coaching position at the University of 
Kentucky and take over in Boston. Me- 

Kentucky and take over in Boston. Me- 
dia reports in Boston and Lexington 
have put fee a package at anywhere 
from $40 million to $70 million, plus 
stock in the club. Hie Associated Press 
reported from Lexington, Kentucky. 

Pitino, who played basketball at the 
University of Massachusetts and coached 
at Boston University, has Dot indicated if 
he will accept fee offer. He said feat if he 
returned to Boston “it would be for fee 
challenge and not for the money.” 

• The Philadelphia 76ers hired Larry 
Brown on Monday as coach and bead of 
personnel. The Associated Press report- 
ed from Philadelphia. 

“I've learned that experience is Like 
gold, and we went after the gold stan- 
dard of experience,' ’ said Pat Croce, the 
76ers' president and part owner. 

Terms of the deal were not disclosed, 
but Brown is reportedly being paid $25 
million over five years. 


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Utah led by just 27-25 after the first 
quarter, but Chris Morris changed the 
course of the half. His jump shot broke a 
29-29 tie, and, a moment later, his con- 
secutive 3-point bombs put Utah ahead, 

Morris had been exiled to the bench 
for long chunks of this season for in- 
consistency and subsequent moping, 
but he was on his game Sunday. 

Ostertag had a tip-in, John Stockton 
hit a 3-pointer, Carr buried a jump shot, 
and Malone had two free throws and a 
jump shot for an 1 1-0 run that increased 
fee Utah lead to 50-35. 

It was imperative for the Jazz that 
Ostertag throw around his 280 pounds 
(127 kilograms). He had been assigned 
to O'Neal and had spent a week fielding 
suggestions on how to stonewall him. 

Ostertag had 8 points, 6 rebounds and 
a block in the first 24 minutes — and the 
Jazz led by 52-40 at the half. O'Neal, 
meanwhile, managed the same numbers 
(8 points, 6 rebounds), but, for him, that 
was an underachievemenL 

Hawks 84, P is to ns 79 In Atlanta, 
Dikembe Mu tore bo made two brilliant 
blocks against Grant Hill m the last two 
minutes as fee Hawks edged fee Pistons 
to win the series, 3-2, and earn a date 
wife fee Chicago Bulls in the second 
round of the playoffs, starting Tuesday. 

With fee score tied at 77, Hill drove 
the baseline for a dunk, but the shot was 
deflected away by die 7 -foot-2 -inch (2.2 
meter) Mutombo. After Christian 
Laettner hit a 17-footer to put fee Hawks 
ahead 79-77 with 1:14 remaining. Hill 
tried to tie it wife a drive to the basket 
But Mutombo, the NBA’s defensive 
player of the year, caught Hill from 
behind and got a hand on the shot 

Steve Smith then made a 3-pointer 
from deep in fee left coiner to put At- 
lanta up by five. 

Laettner finished wife 23 points, 
while Mutombo had 17 points, nine 
rebounds and six blocks. HSli led the 
Pistons with 21 points. 

Hast »l t Magic 83 In Miami, Tim 
Hardaway hit two baskets in the final 43 
seconds as die Heat held off Orlando to 
win a playoff series for fee first time in 
their nine-year history. (NYT JLATAP) 

* Celtics Try to Lure Pitino 

The Boston Celtics have made Rick 
Pitino a lucrative offer to leave his 

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AIRBORNE IN HELSINKI — Pavel Patera of the Czech Republic being checked by Donald Brashear of the 
United States on Monday in the ope ning match of the medal round at the World Ice Hockey Championships. 
Ted Donato of the Boston Bruins scored twice as the Americans beat the defending champions by 4-3. Russia 
beat Sweden by 4-L The Swedes had led the standings because of points carried over from the first round. 

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Ranger Goalie Loses All but Game 

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When hockey players drop their 
sticks and gloves, it usually means they 
are about to fight Goalies rarely shed 
this equipment, especially when they 
are trymg to make the most important 
save of fee day. 

But Mike Richter of fee Rangers lost 
all these things and still came out all 
right in the climactic moments of victory 
Sunday over fee Devils, a 2-0 thriller 
feat tied their second-round Stanley Cup 
playoff series ai one victory apiece. 

Wife just over a minute left, John 
MacLean outfought the Ranger defense- 
man Brian Leetch along the right wing 
boards in New Jersey’s jam-packed, 
loud-as-all-get-out borne arena. 

The Rangers were protecting a 1-0 
lead, fashioned from Leetch ’s rak-peri- 
od power-play goaL As MacLean took 
the puck. Leetch tripped and fell. 

Inis left Richter naked, in fee 
hockey-coverage sense, even with all 
Ms equipment still on him. As he moved 
up to poke-check MacLean, Richter lost 
Ms stick. 

As they came together, MacLean’s 
wrist shot Mt Richter’s legs, and 
MacLean’s skate knocked the big 
blocker off Richter's right arm. 

As fee puck bounced around the 
crease, Richter rolled over on Ms back. 
His glove slid off. Richter tried, and 
failed, to knock the puck away with Ms 
bare hand. 

“It was a pretty vulnerable situ- 
ation,” be said. “I’m down without 
anything. As dramatic as it may have 
looked, they didn't get a second poke, 
wMcb was critical.” 

Twenty seconds later, with fee Devil 
goalie, Martin Brodeur, pulled for an 
extra attacker, Russ Courtnall of the 
Rangers shot the puck into the empty 

It was fee 15fe shutout of the tour- 
nament, one short of the league record. 

Wayne Gretzky set up the game-win- 
ning goal by carrying the puck behind 

fee net and setting up Leetch 's short 
shot Gretzky’s puck-handling mesmer- 
ized fee defenders. 

“Everyone lost me, even Brodeur,” 
Leetch said. “He was looking behind 
him. He was more worried about Wayne 
and didn't know I was out there all 

The Devils could not coordinate their 
power-play attack even when two 

NHL Playoffs 

Ranger penalties overlapped by 70 
seconds in the third period. 

And when the Devils seemed to score 
a goal on the power play late in the 
second period, it was nullified because 
video review showed fee scorer, Steve 
Thomas, illegally in Richter's crease. 

The Rangers have a strategy to try to 
beat a team that finished five places 
ahead of them in regular season: Work 
them over and try to intimidate them. 
Let fee Devils take the penalties for 

The plan worked very well Sunday 
and might work even better in Man- 
hattan. where referees sometimes seem 
mindful of the celebrity Rangers and 
their pack of fans. 

Itod Wings 3, Mighty Ducks 2 In De- 
troit. the game lasted so long that play- 
ers scavenged for food in fee dressing 
room between overtimes. 

“Raisins, little Fig Newtons, hot dog 
buns, whatever we could scrounge up.” 
said Dan Trebil, an Anaheim defense- 

semifinal series in overtime, after a 2-1 
loss 59 seconds into overtime in Game 1 
on Friday. ‘J 

The players guzzled fluids between 
periods, ana some pedaled bikes to keep 
their legs from cramping. > 

“I probably hadn't stayed out there 
three and four hours since I was a kid 
playing river hockey.” fee Duck der-.. 
fenseman Bobby Dollas said. Zf. 

As for Scotty Bowman, fee Red Wqig 
coach, who is a veteran of 270 playoff 
games: “I was in uncharted waters. I’ve 
never had a third overtime in all my 

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Paul Kariya, Anaheim's captain, said 
he had never been so tired. 

It took nearly 5V& hours, three over- 
times and 101 minutes 31 seconds, but 
Anaheim bad only a loss to show for it 

Vyacheslav Kozlov's goal ended it 
1:31 into the third overtime Sunday. It 
came on a controversial power play with 
a shot from the right circle. 

The Ducks have lost both games of 
their best-of-seven Western Conference 

The Ducks finished wife 51 shots J— 
22 in overtime — and Detroit had 71.34 
of them in overtime. 

The Ducks’ J. J. Daigneault Mt fee 
post in the second overtime, and the Red 
Wings’ Brendan Shanahan, Steve 
eiman and Kozlov had chance and 
chance again, though Mikhail Shtaien- 
kov, who had replaced the injured goalie 
Guy Hebert, was spectacular in turning 
them away. 

. “You go from almost winning it for 
your team to taking the penalty that lets 
them score on fee power play,” said 
Daigneault, who hooked Doug Broyra 
to prevent a scoring opportunity. 

“It’s tough physically and psycho- 
logically,” Daigneault said. “We'renot 
out of it We've lost two tough gameson 
the road, and now we’re going hom£” 
Avalanche 4, Oilers 1 In Denver, 
Valeri Kamensky and Claude Lemieux 
scored second-period goals, and Patrick 
Roy made 42 saves as Colorado beat 
Edmonton to take a 2-0 lead in the best- 
of-7 series. •: 

Kamensky's sixth playoff goal and 
Lemieux 's seventh — tops in the post- 
season — broke a 1-1 tie. ~ 

Roy. who stopped the Oilers three 

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times od breakaways, extended Ms l/ 
cord for playoff victories by a goalie to 

cord for playoff victories by a goalie to 
92. Colorado has outs cored fee oppo- 
sition 12-1 in fee first period of its five 
home playoff games. (NYT, LAT, AP) 



Rockies’ Bailey Pitches to the Nines 

The Associated Press 

Roger Bailey became just fee second 
Colorado Rockies pitcher to throw a 
complete-game, nine-inning shutout at 
Coors Field, scattering nine hits m a 9-0 
victory over the Philadelphia Phillies. 

After going 2-3 with a 6.24 ERA last 
year, Bailey is 4-1 with a 1.71 eamed- 
tuh average. He is the only pitcher in the 
majors wife two shutouts. 

‘ ‘He is a surprise,” said Don Baylor, 
the Rockies' manager. “He has pitched 
as well as anybody in the National 
League.” Bailey walked none and 
strode out three in his third complete 
game of fee season. 

Larry Walker doubled twice and 
singled, drove in four runs and raised his 
major-league-leading average to .42 1 in 
Sunday's game. Virniy Castilla hit his 
10th homer. 

Giants 2, Rads 1 Glen alien Hi]] Mt a 
two-out, two-run single in the bottom of 
the 10th inning, rallying San Francisco 
over Cincinnati. 

The Reds scored a run in the 10th on 
an error by the Giants' third baseman, 
BUI Mueller. The Giants’ closer. Rod 
Beck, got the victory. 

The host Giants came back, loading 
the bases when Marvin Benard and 
Barry Bonds both walked and Mueller 
was Mt by a pitch. After Jeff Kent 
fanned for the second out. HiU ended an 
0-for-14 slump with a bloop single to 
shallow right. 

Expos 9, Mm* 3 Jim Bullinger 
stopped host San Diego with his arm 
and his bat, and Rondell White hit two 
of Montreal’s six home runs. 

Bullinger held the Padres to one Mt 
until Ken Caminiti and Chris Jones hit 
consecutive homers with one out in the 
ninth. Bullinger. an infielder in the 
minors, hit fee fourth home run of Ms 
career and also singled. 

White went 4-for-5 and drove in four 
runs wife Ms first two-homer game in 
the majors. Vladimir Guerrero. Henry 
Rodriguez and Chris Wid^er also 
homered for the Expos. 

Dodgers 5, cute 2 The Dodgers' 
pitcher. Qian Ho Park, and their catch- 
er, Mike Piazza, did most of the work as 
Los Angeles defeated Chicago at 
Dodger Stadium. 

Piazza hit a towering home run, threw 
out a runner trying ro steal and tagged 
out Brian McRae on an attempted steal 
of home. Park limited the Cubs to five 

Ranger* 7, Red Sox 8 Bill Ripken, 

playing because Beoji Gil was injured, 
singled home the go-ahead run in the 

I*! ' 

Baskball Rovkddp 

Mts in 6% innings. He also drove in a run 
with a suicide-squeeze bum and 
doubled for his first extra-base hit in 27 
at-bats in the majors. 

Astros i, Martins o Houston's Darryl 
Kile pitched a four-hitter for his first 
shutout in four years. Kile struck out six 
and walked three. Kevin Brown took fee 
loss even though he gave up only one 
run on five Mts and had a season-high 10 

In ihe American League: 

Yankees 13, Royals 5 Tino Martinez 
homered twice and drove in four runs as 
the New York Yankees Mt five homers 
in a game for the first time since 1993 
and routed Kansas City- 

Martinez, who also singled and 
doubled, has 12 homers and leads fee 
majors with 40 runs batted in. Cecil 
Fielder. Bernie Williams and Jorge 
Posada also homered for the Yankees, 
who had a season-high 19 hits and won 
for the 1 1th time in 15 games. 

Oriole* ii. Athletics o Roberto Alo- 
mar hit a grand slam and drove in five 
runs, and Rocky Coppinger pitched six 
shutout innings ana struck out nine at 
Camden Yards. It was one of four 
shutouts in fee American League on 

Cal Ripken went 3-for-3 wife two 
RBIs Jo help fee Orioles to their seventh 
victory in nine games. 

white Sox *, Angola 2 In Chicago, 
Frank Thomas broke a 2-2 tie in the 
seventh with a sacrifice fly, and Albert 
Belle followed with a run-scorinE 
single. 61 

seventh in Arlington, Texas. 

Boston, which had led by 5-0, was 
ahead, 6-2 before Texas tied the score 
on Will Clark’s three-run homer in fee 
fifth and Juan Gonzalez's infield single 
in the sixth — his first run-balled-in of 
fee season. With two on and two outs in 
the ninth, Reggie Jefferson hit a smash 
to first off John WettelandL Clark dove 
to get the grounder, then outraced Jef- 
ferson to the bag. 

Mannar* 9, Bremen O Jamie Moyer 

combined with Scott Sanders on a six- 
hitter, and Dan Wilson drove in four 
runs for Seattle with a double and a 
single. Moyer, who started fee season 
on fee disabled list because of a strained 
left forearm, gave up five singletiriii 
seven innings. ! 

In games reported in some Monday 

Mm Jay* i. Twins o Pat Hentgen 
struck out 1 0 and pitched a four-Mtiet ai 
Sky Dome for his seventh career 
shutout Last year’s AL Cy Young 
Award winner walked only one and 
retired 17 straight batters at one point 
Bob Tewksbury lost despite throwing a 

Tiger* 2 , Indians o Detroit snapped a 
13-game losing streak against Cleve- 
land. but lost a pitcher, Willie Blair. 

Blair was hit in the head by jiilio 
Franco's liner and taken off the field in an 
ambulance after shutting out Ms former 

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team for 5Ys innings. The Tigers said 
Blair (3-2) sustained a fractured iaw. 

ff**” Pirate* i A rookie right 
fielder, Emil Brown, dropped a routine 
fly ball, helping the Braves beat Pitts- 
burgh. Chipper Jones Mt an RBI sinTie 
with two outs in the third inning. After a 
walk, Ryan Klesko lofted a high fly that 
glanced off the heel of Brown’s glove. 

c«diinb 8 ,M«te 2 Todd Stottlemyre 
limited New York to three hits in eight 
innings, and Ray Lankford and Willie 
McGee homered for visiting St Louis. 




PAGE 19 






Manchester United 

*2*. ^taggers Toward Title 

^'h'or^H Ties Middlesbrough, 3-3, in Rain 

£1 Salvador Climbs 
Past Costa Rica, 2-1 

toward die English PremierL^? 
d Ur *2! *p3v, - tide Monday when it ned, 3-3, at home with 
iaa£c fcjw 1 * ^Hw^kS ■ Middlesbrough m an exhilarating match in 
toeir •s is * i which teams attacked much better than 

On e is jxT^to (4? ■ they defended. 

Rune ^ OuinrS^ ! Although the game was in Manchester and 
W-Bsaw^’ 85 snSHa. - : Middlesbrough is 18 places below United, the 
* ani^ : tie was a better result for United than for its 
iairr. c ^njian^iiih 5 ! visitors. The point it earned means that it 
»iag ?r ..f df>» s two points from its two re mainin g 

VOti ^ 1 lUROFRAW Soccmr 

CmpdeJ by Oar Su&Frtm, Ospm*n 

underside of the crossbar. In the 40th minute. 

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Mawmester Unjfcaconunued ilsstuxnbling Robbie Mustoe crossed and Craig Hignetr 


darted forward to push Middlesbrough ahead 
by 3-1. 

_ United completed the burst of four goals in 
eight minutes with a passing move that ended 
when the ball reached Gary Neville, un- 
marked inside thepenalcy area. He drilled his 
shot low and in on the far post. It was his first 
goal for the club. 

Ole Gunnar Solskjaer, who scored both 
United goals in the 2-2 tie at Leicester on 
Saturday, made it 3-3 in the 68th minute when 
Neville crossed from the right, and the Nor- 
wegian beat Nigel Pearson in the air and 

^apulrjfcov Z!^Z y -* 
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IsC^t'ififegainst Chelsea. 

I t For the second time in three days. United 

For the first goal. Ian Ross knocked the ball 

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i brough took the lead after 15 minutes after a Durrani, a substitute, brought down Micky 

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i_J 3-pass move that started with Clayton Black- Weir in fee penally box. Coyle sent Dibble the 
);tnore back in his own penalty area. Juninho, wrong way from the penalty. 

^ ’6ne of Middlesbrough’s two Brazilian mid- Paul Gascoigne, who had not played since iwrwii^dmrAHocuMin 

field players, was involved three times before January, appeared as a substitute in the second United's Ronny Johnson, left, leaping with Middlesbrough ’s Fabrizio Ravanelli. 
'•finding space on the left of the United penalty half. He missed the Rangers" best chance on 

-‘area and stroking the ball between the goal- the hour when he poked his shot past the club. He will join the Kansas City Wizards in The report was broadcast Friday. Por 

keeper, Peter Schmeichel, and the far post. goalkeeper. Scott Howie, but wide of the the U.S. Major Soccer League. coach Antonio Oliveira, who led the nation 

As Ravanelli limped off in the 34th minute, post. Portugal Porto beat Leca, 2-1, at home side at the time of the alleged events, w; 

sS^ _Roy Keane equalized for United, pouncing on Rangers remain six points ahead of their Sunday to stretch its lead at the top of the first hospitalized with heart problems Saturday. 

\aloose ball in the penalty area to score. Glasgow rival, Celtic, with two games to play division to 12 points over Sporting Lisbon. France AS Monaco clinched its fir 

..‘area and stroking the ball between the goal- 
keeper, Peter Schmeichel, and the far post. 

As Ravanelli limped off in the 34th minute, 
_Roy Keane equalized for United, pouncing on 
\aloose ball in the penalty area to score. 

club. He will join the Kansas City Wizards in The report was broadcast Friday. Porto 

the U.S. Major Soccer League. coach Antonio Oliveira, who led the national 

Portugal Porto beat Leca, 2-1, at home side at the time of the alleged events, was 
Sunday to stretch its lead at the top of the first hospitalized with heart problems Saturday, 
division to 12 points over Sporting Lisbon. France AS Monaco clinched its first 


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gained the lead. Chris Freestone, Ravanelli’s 
, substitute, beat United's defense to die ball 

- and flicked into the path of Middlesbrough's game. 

Motherwell can avoid the relegation play- 
offs if its beats Dunfermline in its filial 

Both teams have five games to play. 

French League title since 1988, playing a 2-2 

On Monday, Porto said it would sue the tie Sunday against Caen. Victor Ikpeba and 

second Brazilian, Emerson, who wall 
ball over Schmeichel and into the go: 

pedtbe Richard Gough, the Rangers' captain, 
off the played his last game after 10 seasons with The 

national television channel SIC over a report 
alleging that some of its players were involved 
in an episode involving drugs and prostitutes 
in a hotel room in November 1995. 

Thierry Henry gave AS Monaco one-goal 
leads but Caen — 19th in the 20-team first 
division, came back twice on goals by Frederic 
Nee and Marc Roche. CAP, AFP. Reuters) 



' Major League Stardoms 


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Bantam* 281 US lire — 11 15 0 Maducv 

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NBA Playoffs 


BreQAT's mnus 

' Orlando 20 14 19 30- 03 

Mad 22 19 20 22— 91 

O: P-Hanknvay 8-22 13-1733. Strong 34 7# 
91$ M: Mounting 9-174.722, Lancni 4-133- 
4 19. Rotaaads— Orlando 44 (Slreng 12), 
Mknl 52 (Brawn 14). Asrietv- Oitondo 18 
(PJtoRtaHTy 4), Mhuni 20 fTJianUnxir 
11 ). 

(Mlata wins Mries 3-Z) 

DotraH 25 17 20 17-79 

Aflanta 22 20 12 30-04 

D: HB 9-24 34 21. Hunter 7-17 1-1 17! A: 
Laertner 9-17 44 23. Mutamba 7-11 341 17. 
Retoands-DcM 44 (Humsr 99# Altana 54 
Wutombft Blaylock 9). Asstots— Oetntit 11 
(HS 4). Atlanta 17 (Corbin, Btoyiod; 55- 
tAilaata wins series 3-2) 


LA. Laban 25 UN 17—77 

UMl 27 25 10 23- 93 

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17. J«M 4-15 2-2 1 71 U: Makne 9-21 5-10 23. 
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Rcbaaads— Los Angeles 51 (ONeal 125. Utah 
33 (Mataw 13). Assists— Los Angeles 14 
(Vton BN 4J, Wrti 24 (Homaak 7). 

(Utah toads series Ml 

K.Y- Rangers 1 0 V-2 721PCstTheS 

New Jersey gOO-O flretplayoWhoU 

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E-Jaseph. C-Rny. 2 - Canada 2 

(Cotorad* leads series 2-0) MAMI 

Rnel seoras end print money Sunday 
from tin SIX ntftUon She* hoiwton Opart 
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tlrat ptayofl hole): 

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KevfriSutberiand. UX. 48-7346-70-274 
S. ElklngJmv AustiaHa 49-74-7045—278 

LompdAi fy Fran DupaxAa 

Raul Diaz Arce and Klias 
Montes scored goals as Ei 
Salvador beat Costa Rica, 2- 
I, in San Salvador in a qual- 
ifying game for the 1998 
World Cup. 

Arce opened the scoring in 
the 19th minute on Sunday, 

World Soccer 

and Montes made it 2-0 in the 
53d minute. Costa Rica’s Luis 
Diego Amaez completed the 
scoring in the 58th minute . 

El Salvador leapfrogged 
over Cbsta Rica into third 
place in the six-team final re- 
gional qualifying group. Both 
teams nave four points. The 
group leader, Mexico, has 
eight points, and the United 
States is second with five. The 
top three advance. 

Argentina Boca Juniors' 
season of misery hit a new 
low when it had three players 
sent off in yet another loss. 

Boca slumped to 15th 
place in the 20-team table 
after losing, 2-0, away, to In- 
dependiente, which is 
coached by Cesar Luis 

Nestor Lorenzo was dis- 
missed in the 31st minute for 
a foul on Jose Luis Calderon 
that led to a penalty. Jorge 
Burruchaga fired home from 
the penalty spot, and later ad- 
ded the second goal. 

Diego Cagna was sent off 
for a foul on Calderon in the 
73d minute, and Nestor Fab- 
bri followed one minute later, 
apparently for insulting a 

River Plate, Boca’s bitter 
rival, lost by 4-1 at home to 
Estudi antes. River continued 

Monaco 2 Coen 2 

tnuintnov: Monaco 73 points Parti St 
Germain 64 Nodes 41; Bordeaux 59; Men 
SH AUMern>5toSfiastMwg5Zr Ljwr 54 Basita 
5S Montpelier 4&- MaraeRe 46s Gutegamp 
45c Lons 44 Le Hone 42; Cannes 41; Ronnes 
39c Nancy 34 LRe 34 Caen 33; Mce 2D. 

a decline the began with the 
sale of Ariel Ortega to the 
Spanish club Valencia. 

Colon, the league leader 
that has never won a major 
title, played to a 2-2 draw, at 
Huracan Corrientes, Minch 
has drawn nine of its 10 

Brazil A teenage striker. 
Dodo, scored his eighth goal 
in a week as Sao Paulo beat its 
archrival Palmeiras, 4-2, in 
the Sao Paulo championship. 

The triumph followed an 8- 
1 victory over Juventus in the 
same tournament a week ago 
and a 5-2 hammering of the 
United States on Thursday. 

Dodo, 19,who scored hat 
tricks in both of those games, 
added two more goals as Sao 
Paulo recovered after falling 

The result made Sao Paulo, 
sure of a place in the four- 
team playoff, along with Cor- 
inthians. (AF, AFP, Reuters) 

■ Two Stars Retire 

Michel, the former Spanish 
international, and Hugo Sanc- 
hez, the former Mexican in- 
ternational, both played die 
last game of their profession- 
al careers for Adetico Celaya 
in the Mexican championship 
on Sunday, Reuters repented. 

The two players were also 
teammates at Real Madrid in 
the late 1980s. 

Celaya lost, 3-2, to the 
reigning champions, Santos 
Tji gnrm, and wul finish bot- 
tom of its group in the qual- 
ifying stage of the champi- 
onship. Sanchez, who was top 
scorer in the Spanish cham- 
pionship in four seasons with 
Real Madrid, scored only 
twice in his stay at Celaya. 

68-71 -47-78— 274 

48- 72-44-70—276 

49- 74-7845-278 

48- 72-71-48-279 

72- 49-71-70-282 

49- 48-74-71—282 

73- 72-44-73— 282 


Maneticstor Uititod & Mkktesbrougb 3 
truDOMk Manchester United 71 
poMs Urerpool 67) Arsanaf 64 Nowrasfto 
fit Aston Vlllc 5» Chaiwa 56; Sheffield 
Wednesday 5fc Wbnbiedon 5ft Tottenham 
46; Derby 46s Leeds 45r Evartai 43s Biack- 
bwn 41; Southampton 41; West Horn 41; Lo- 
leesta 41; Sundertand 4ft Cowtiiy 3ft MW- 
dtosbrough 37) Nottingham Forest 34 

EI Sahodorl Costa RJai 1 
■nruMMWt Mexico 8 points: tinted 
StatesS) El Sahrador4; Costa Rka4; Jamaica 
* Canada 2. 

Woblp Champ momship 

uoted Slates 4 Cacti RfiputaOc 3 
Rustio 4 Swcdan 1 

wnuaMNOte Sweden 4 points Russia 4) 
Rnkmd 2; Canada ZCzocfa RepubRcZ Unit- 
ed States Z 

New York-New Jersey 1, Loo Angeles 0 
Dates 3, Washington D.C 2 
■maxim Eratora Coehran: DjC. 
bus ft NY-NJ 7. Wtatoni Contarence Col- 
orado 9; Datiosft Kansas City 7: San Jcee Si 
Las Angeles 3L 

I— It R SW MtmOH 
Cannes 2 Strasbourg 2 




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Stottanberg OX Austraikv 7-4 0-23. 4-4 








Deng Taping. China, del Wong Nan. Chi- 
na 1321, 21-8, 21-11,21-10. 


U Jii, Chbn and W8 Na, atina 
wotmrrs DOUBLES 

Dug Yeplng/Yang Ylng, China, del u 
Ju/Wang Nan, ailna, 21-1722-2017-21 18-21 


QUO YtaptaG CMWChai Po VWb Hong 
Kong ato WDng HuVQwng Hongxia, China 

1-JanOw Wdldner ( Sweden ) dai. Vladimir 
Samsonov (Botarasl 21-1221-1721-13 

Kong Linghut, CMm and Yan Sea, CMna 

Kong UnghuVUu Guodang, China, def. Jan- 
Ove WaUhmyjoigM Penscxv Swedea 1 9-21 
21-15 18Z1 21-1321-17 


Joan-PtMppe Gaten/Damien EtoC France 
and Kop MatsusMto/HiraiM StaBwIanL 



anahBM— R eadied RHPDeantaSpringsr 
ftoei Vancouver, PCL. Optioned INF Gerage 
Artasta Vancouver. 

Baltimore— A greed to terms wVb RHP 
M8a Mussioo on 3yeor conbud extension 
through 2000 season. 

CLEVELAND— Put RHP Paq( Shuoy on 15- 
day disabled M retroactive Id Apffl 25. 

DETBDiT— Oaftned RHP Knvfn Jarris off 
wtdvera from anetimati Reds end d oM gmd e d 
Itim tor asstgvmonL 

Kansas cmr— Adtvatod RHP Jeff Mant- 
gomefy from 15-day dtariilad RsL Sent bt- 
flolder Shone Hoflar toOmolNE AA. 

NUNMESOTA— Activated DH Paul Maltar 
(torn 18day Asabtad Bst Opttonod OF Chris 
LaihoiHtoSatt Lakt PCL 

Texas— -A ttivated OF Juan Gonzalez from 
15-day dSabtad 1st Optioned OF Man: Sag- 
moon la Okkdionu City, AA. Assigned INF 
Domingo Cadeno to Totsa TL on rahabS- 
toflon assignment Put RHP Ken HR an 15- 
day dsaWed tst ahuocM* la May l. 


aacASO-Put C-3B Tyler Houston on 15- 
day dbabtod Bst retroactive to May X Ra- 
adtad C MMle Hubbard tram bun AA. 

ROMPiip^l ec ulledRHPRohStanlhrlirara 


new roBK-Transterwd RHP Jason ts- 
ilnghausen tram IS-day to co-day dlsaMed 
Bst Put OF Lance Johnson an 15-day db- 
abled bt Recated OF Gary Thurman from 
NariMk. 1L and LHP BRI Puteptwr (ram Ms 
rehabRtatton asslgiunsnt and aretaKd blm 
to St. Lucie, FSL 

prrrsawwH— Put RHP John Ericks an 15- 
day dteBdod KsL Roatfed RHP Rnm 
Morel tiwn Calgary, PCL 

ST. u»r— A ctivated IF Mta GalegaL Op- 
tioned RHP Rich Batdwiorto LsuMBk, AA. 
DesJgnatad if Stave Scoaam tor uffgn- 
raenL Put LHP Danann Osborne on 15-day 
dsabtod ItaL RncaStd RHP Brady Rondo 
from Louisvflte, AA. 

PAGE 20 



Sorry, Wrong Number 

Cannes: 50 Years of the Good, the Bad and the Sexy 

joy! Nynex and Bell At- 

i TV joy! Nynex and Bell At- 
lantic are merging. Two of die 
largest telephone companies 
in America will be as one 
because the Anti-trust Divi- 
sion of the Justice Depart- 
ment doesn't see the merger 
as a threat to 

I have al- 
ways referred to 
these and-trust 
lawyers as the 
Maytag men. 

They have ab- 
solutely noth- 
ing to do and D . . . 

any conglomer- Buchwald 
ate that wants to get into bed 
■with another conglomerate can 
he their guests. 

> Why then are some people 
So concerned about the $20- 
frillion wedding party? 

*- They fear that once die tele- 
phone company gets you by 
The throat, you can't even call 
die emergency 91 1 number. 

“I didn't know the anti- 
trust people did telephones.” 

“It's a service. When they 
give permission for two 
monoliths to merge* they 
have to ensure that they op- 
erate as smoothly as they did 
before the merger.” 

“What is the advantage to 
the public of letting two gi- 
ants such as Bell and Nynex 
join forces?” 

By Alan Riding 

Hew York Jana Service 

P ARIS — It takes ^special talent to idolize 
glamour and money and still appear in- 

talent to idolize 

■: "Hello, is this Bell At- 
lantic-Nynex? My phone is 
;on the fritz and I keep getting 
John Gotti's voice mail/’ 
“Did you call the Justice 
.Department’s Anti-trust Di- 
vision? Ever since they gave 
Bell and Nynex permission to 
merge, they are responsible 
for all our phone repairs.’.' 

“It means that costomas 
can get their bills twice as 
fast They won’t have to wait 
to find out what they owe. 
Also, at some point in time, 
the two merged institutions 
can agree on rate increases, 
which are fair and necessary 
to maintain the services.” 

“Whatever you say h still 
sounds like a monopoly to 

“How can you call us that? 
We’re just a little itty-bitty bil- 
lion-dollar company spread oat 
over seven states. We make it 
possible far Americans to 
communicate with their chil- 
dren and parents at reasonable 
rales, providing they call at 
three o'clock in tbe morning 
when costs are so much 

"Can you send someone 
ova to fix my phone?” 

tellectuah yet this peculiarly Reach gift may 
well explain die perennial success of the 
Cannes Internationa] Kim Festival. Year in, 
year out, paparazzi-driven exhibitionism and 
ftantir deal making invade the balmy Cote 
d'Azur resort, yet the festival’s arty image 
somehow prevails. 

This year, at least, the pumped-up ex- 
citement preceding the festival's gala open- 
ing Wednesday seems justified. 

It is the 50th festival, an occasion to 
reminisce on the good, the bad and the sexy 
of past festivals, a moment to savor Cannes’s 
well-entrenched position as the world’s top 

ter to fix my phone?” 

“We can at $60 an hour, or 

The Kindest Cut 

• l Agence France- Press* 

> NEW DELHI — Tbe 
Hindu temple of Lord Ven- 
kateswara in the state of 
Andhra Pradesh has earned 
more than $2 million from the 
sale of hair that devotees shave 
off as part of a ritual, the Press 
Trust of India said Monday. 
Tbe tons of hair, from six and a 
half million people, are sold to 
wig makers ana p ro fi t s go to 
the upkeep of tire temple. 

you can bring your phone into 
the Justice Department Anti- 
trust Division and they will 
send it onto toe FBI lab. 
where our repair center is now 

“How did you people 
manage to puD the wool over 
the Anti-trust Division’s 

“It was easy. They were all 
fast asleep at their desks. We 
promised that if they ap- 
proved the merger, we would 
upgrade all our phone booths, 
which we cook! never afford 
to do before Bell and Nynex 
fell in love.” 

film jamboree, an excuse to gather top di- 
rectors and stars for a huge party that may 
well draw France's president, Jacques Chir- 
ac, to tbe bnnkerlike Palais des Festivals on 

Nostalgia, then, may set tire tone for this 
year’s festival, which runs through May 18. 
Expected to be on hand will be many names 

be — frmn^directors like Robert Altman, 
Rands Ford Coppola, Martin Scorsese and 
Wim Wenders to ageless stars hire Gina Lol- 
lobrijrida, Claudia Cardinale. Jeanne Moreau 
and Catherine Deneuve. (Related article on 
celebrity dressing at Cannes, Page 10.) 

Nor will the legendary names of the past 
be forgotten, directors like Alfred Hitch- 
cock, Orson Welles, Luis Bumiel, Francois 
Truffaut, Luchino Visconti, Ingmar Berg- 
man and Federico Fellini, who shaped the 
early years of the festival and consolidated 
its reputation as a shrine of cinema as art Of 
these, only Bergman is still alive. He is to be 
awarded a special prize Sunday, but he has 
no plans to collect it in person. 

A spate of new books and glossy 
magazines has also stirred memories of Rita 
Hayworth, Grace Kelly, Brigitte Bardot and 
Sophia Loren successively conquering 
Cannes in the 1940s and ’50s; of a little- 
known English actress, Simone Silva, shock- 
ing tbe festival in 1954 by ap pe ari ng topless 
on a beach beside Robert Mitchum; of 
Truffaut and Jean-Luc Godard forcing the 
cancellation of the May 1968 festival halfway 
through, in the name of student revolution. 

Whether the 50th festival can mateh the 
past with fresh movie masterpieces and de- 
licious new scandals is uncertain. But the 

But tire festival also needs big stars to 
insure the press and television coverage that 
keeps' Cannes’s name in the public's eye. 
This year, the festival opens and closes with 
blockbusters, “Tbe fifth Element,” direc- 
ted by Luc Besson, on Wednesday, and Qim 

Eastwood's “Absolute Power,” on May 18. 
Though “Absolute Power” opened in die 
United States three months ago, it was in- 

cluded simply because Eastwood represents 
major star firepower. 

major star firepower. 

Movies that fail to be selected by the 
festival can still be “at Cannes'* through 
screenings at the International Film Market, 
which this year will draw some 4,000 dis- 
tributors. producers, directors and assorted 
buyers and sellers from around the world to 
do business in the basemeotof the Palais des 
Festivals and in hotel suites. Many of them 
will leave Cannes with a package of con- 

tracts in their pockets yet without having 
seen even one film in competition. 

Tbe festival was founded by France in 
1939 as a political response to the Venice 
Mostra, by then dominated by Mussolini’s 
Fascist regime. 

But, cm its opening night. Hitler's troops 
invaded Poland, World War II was declared 
and the festival was called off. The first 
proper festival then, took place only in 
September 1946. (Tbe 1948 and 1950 fes- 
tivals were canceled for lack of funds, so the 
50th anniversary falls this year.) 

hi its early years, the festival counted on 
glamour to make itselfknown. The’ European 
jet set gave memorable parties in exchange 
for the chance to rub shoulders. with top 
French, British and American stars and even 
occasionally a Picasso or Sartre. 

In the early 1950s, Cannes also reaffirmed 
tire Anglo-American belief that the French 
were sexier than the rest of the. world. Kirk 
Douglas was photographed admiring Bardot 
in a bikini in 1953. The unfortunate Silva's 
baring of herself before Mitchum prompted 
her expulsion from the festival. (She com- 
mitted suicide ayear later.) But her example 
would inspire innumerable starlets in the 
years that followed. 

With its glamour-business-art strategy in 
place, tiie festival has steadily grown in size 
and importance. 

“Cannes is the best place to meet 
people,” said Serge Losique, executive di- 
rector of the Montreal film Festival. “You 
walk down the Croisette, and you see every- 
one. As Peter Ustinov used to say, you even 
meet people you want to avoid.” 


A scene from the festival’s opener, “The Fifth Element,” directed by Luc Besson. 

festival has not prospered by resting on its 
laurels. Rather, it has managed to stay ahead 
of movie festivals in Berlin and Venice and a 
host of smaller ones in Europe by mixing 
business, glitter and art. 

“Cannes is the granddaddy of them all.” 
said Harvey Weinstein, cochairman of 
Miramax films and a regular at the festival 
over the last 15 years. “B erlin is more busi- 
nesslike, Venice is so laid-back, but Cannes 
is still the preeminent force. It’s such a great 
forum. With all its pomp and circ umstan ce, it 
is die most theatrical festival. It’s a great 

Certainly, “everyone” wants to show a 
film in Cannes, everyone, that is, except the 
major Hollywood studios that prefer their 
own marketing and distribution networks. 

“Die studios will send a film to a festival 
only after its American career is over,** said 
GUles Jacob, tbe festival’s artistic director 
since 1978. '"They don’t want to risk bad 
reviews in Europe. Only a handful of di- 
rectors — Preminger, Coppola, Spielberg — 
have imposed their will on tbe studios and 
premiered their films in Cannes.” Still, die 
festival’s “everyone” does include Amer- 

ican independent studios, Miramax and 
Castle Rock Entertainment, as well as pro- 
ducers from tbe rest of tbe world. 

This year, to find die 60 feature and short 
films needed for various official programs, 
Jacob and his advisers sat through 860 dif- 
ferent films (c om p ar ed with 730 last year). 

But more than prestige drives the com- 
petition for a visible spot at Cannes. “Just 
having a film at Cannes means you can sell it 
abroad,” Jacob, a 66-year-old former movie 
critic, said in an interview in his Paris office 
a few days ago. “It’s worth more if it wins a 
prize, even more if it wins the Palme d’Or 
and gets a good public reception.” 

Jacob insists that his selection is guided 
only by quality, although he evidently seeks 
a balance between old and new talent, be- 
tween artistic and popular films . Cannes is 
proudest when it “discovers” films that later 
do well around tbe world. Last year produced 
a vintage crop: three of Its prize-winning 
films — Mike Leigh's "Secrets and Lies.” 
Ethan and Joel Coen’s “Fargo” and Lars 
von Trier’s “Breaking the waves” — be- 
came box office hits in foe United States and 
won several Academy Award nominations. 


■'» > ■ i. V 
'.‘I.*/, i*; 

A BOUT 7,000 people attended a 
concert by Crosby, Stills and 

xY concert by Crosby, Stills and 
Nash at die site at Kent State University 
where four students died and nine others 
were wounded by Ohio National 
Guardsmen sent to quell a protest in 
1970 against the Vietnam War. Tbe trio 
marked the 27th anniversary of the 
shootings with a performance that in- 
cluded “Ohio,” a song written by NeO 
Young to memorialize the deaths 

ford in "London Assurance,” Michael 
Gambon in “Skylight.” Christopher 
Plummer in “Barrymore” and Antony 
Sherm "Stanley.” Jolte Harris, a five- 
time Tarty winner, received a nomination 
for best actress for her performance in the 
revival of "The Gin Game.” She feces 
Shirley Knight in “The Young Man 
from Atlanta,” Lin W illiams in “Sky- 
light” and the favorite, Janet McTeer, 
who plays Nora in the revival of Ibsen’s 
“A Doll’s House.” 

downpour on opening night but that 
didn’t deter blues stars Johnny Cope- 
land, Luther Allison, Lonnie Brooks, 
RX. Burnside and Coco Montoya. But 
it was Bob Dylan, dressed in a pale blue 
suit and white cowboy hat, who stole the 
show. Like many downtown areas 
across urban America, Beale Street had 
slid into decay until 1980. With $500 
million of public and private money 
invested since then, Beale Street is now 
a national historic landmark. 

brought against Murphy, who was fol- 
lowed by an unmarked sheriff' s car that 
was working in a “prostitution abate- 
ment zone” at 4:45 A^i. Deputies fol- 
lowed the vehicle for two miles after 
Murphy picked up Atisone Serali, 20. 
Bail for Seiuli. who had an outstanding 
warrant on prostitution charges, was set 
at $15,000. Murphy’s attorney said the 
incident was an innocent mistake and 

. -VJ 

that the actor had been trying to help 
someone be felt needed a lift home. 

With 12 Tony nominations, “The 
Life,” a musical celebrating the sleaze 

and sex of pre-Disney Times Square, 
leads the field in what was a busy Broad- 

leads the field in what was a busy Broad- 
way season- “Steel Pier,” a dance mara- 
thon set in 1930s Atlantic City, was 
second with 1 1 nominations. Both were 
nominated for best musical, along with 
“-Titanic” and “Juan Darien.” Nom- 
inated for best play were: “The Last 
Night of Ballyhoo” by Alfred Uhry, 

Brace Springsteen earned 1 million 
kronor ($133,000) without having to 

Polar Music Prize in Stockholm. Spring- 
steen shared tins year’s prize with the 
Swedish choral director Eric Ericson. 

“The Young Man from Atlanta” by 
Horton Foote, “Skylight” by David 

Horton Foote, “Skylight” by David 
Hare and "Stanley” by Plain Gems. The 
nominees for best actor are Brian Bed- 

In a Woodstock-like atmosphere, tens 
of thousands of music fans congregated 
on the banks of the Mississippi to cel- 
ebrate Memphis’s rich blues tentage at 
the Beale Street festival, a three-day 
annual music event There was a brief 

Michael Jackson will give an ad- 
ditional concert in Paris next month 
after tickets to the first have almost sold 
rati. The concerts, on June 27 and June 
29 at the 50,000-seat Parc des Princes 
stadium, are part of Jackson’s inter- 
national tour that begins in Bremen, 
Germany, at the end of this month. 

The Los Angeles police stopped a 
shicle driven by actor Eddie Murphy 

vehicle driven by actor Eddie Murphy 
and arrested across-dressing male pros- 
titute in Murphy's car. No charges were 

The Greek composer Mikis 
Theodorakis was treated for acute 
breathing problems after a three-hour 
concert in Berlin and has canceled all 
the remaining tour performances. Tbeo- 
dorakis, 71. who composed the music 
for the film “Zorba tbe Greek,” was 
playing in Berlin at the start of a Euro- 
pean tour with the Turkish singer Zulfu 
Livaneli. The tour had been scheduled 
to end June 13 with a concert on the 
demarcation line dividing tbe island of 
Cyprus between Turkish and Greek sec- 

diry HnwooMatm , 

David Crosby, left, Graham Nash and Stephen Stills at Kent State. 

Every country has its own AT&T Access Number which 

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makes calling home and to other countries really easy. 


Just dial the AT&T Access Number for the country 


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you’re calling from and well take it from there. And 

be sure to chajge your calls on your AT&T Calling 


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Card. U’11 help you avoid outrageous phone charges 

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The rain in 900-99 

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on your hotel bill and save you up to 60%? Low rates 

and the fastest, clearest connections home 24 hours 


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a day. Rain or shine. That’s AT&T DirecT Service. 

stays mainly in the plain. 

Please check the list below for AT&T Access Numbers. 

AT&T Access Numbers 

1. Just dial the AT&T Access Number for tbe country you 
are calling from. 

2. Dial (he phone cumber you’re calling. 

3. Dial the calling caid number listed {fore your name. 






Genany — 

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Swrfw 020-755-611 

Switzerland * MQWW011 

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Egypt*! Cairo)* 5104200 

1 - 008 - 55S - M8 


0800 - 022-9111 




Saudi Arabia 

. 510-0200 
. 177 - 100-2727 
1 - 800-10 



Soeih Africa 



0 - 800 - 90-0123 

Can! find tbe AT&T Access Number for the enurnry you’re calling from? just ask any operator for 
AT4T DirecT Serrttx, or v5s» cur Web sile at: http-y/w^um^coraAra>cler 

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