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j Italy Wants the Euro, 

^ i But Does Euro Want It? 


I Rome Stung by Cool Reception to Efforts 
j To Join Club of the Common Currency 

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By John Vinocur 

International Herald Tribune 

ROME — A few weeks ago. when a 
European Commission interim report 
found Italy falling short of the require- 
ments to join Europe's common cur- 
rency in 1999, the newspaper La Re- 
pubblica published this headline: 

. "We’re Out? That’s Monetary Ra- 

Take the pledge, head down the saw- 
dust path, stay on the wagon. Italy 
thought it had done it all — mastering 
inflation, abolishing price-indexing, 
peeling back the deficit — only to be 
told it was not good enough, and at this 
stage at least, not quite clubbable. 

. Countries like Germany and France, 
doubtful achievers by their own ac- 
counts of the European Union's con- 
vergence criteria, were deemed certain 
participants by the commission for the 
start of the euro. But Italy, a great nation 
and sometimes feeble state, was back on 
the list of the likely-to-relapse, those 
countries too short on seriousness and 

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Biwe Willis "'J- ssaa^I 

By William Drozdiak 

Washington Post Service 

BONN — The stately mansion on the 
banks of the Rhine where the U.S. am- 
bassador would entertain Germany’s 
power elite has been vacant for 11 
months. A stale odor of abandonment 
seems to permeate the residence of 
Washington’s chief envoy to the coun- 
try’ often called America’s most im- 
portant ally. 

Like the mansion, which is awaiting 
the arrival of the new ambassador, die 
German- American partnership that 
served as the linchpin of die Atlantic 
alliance for nearly naif a century also 
seems in a state of neglect and disrepair. 
Diplomats, politicians, scholars and 
business executives say the special kin- 
ship forged by mutual security concerns 
dunng the days of the Soviet threat 
appears to be giving way. Replacing it is 
an estrangement marked by rivalry 
more than common purpose. 

The occasional tensions that arise over 
trans-Atlantic trade disputes, divergent 
approaches to rogue states such as ban 
and bow the West should deal with Rus- 
sia are nothing new. What distinguishes 
1 the current alienation between Boon and 
Washington, these people say. are sig- 
nificant changes in their joint strategic 
agenda, reflecting shifts in demography, 
identity and interests. 

“I believe we are witnessing a clear 
cultural break between the United States 
and Germany,” said Werner Weiden- 
feld, a political science professor who 
has worked for the last decade as the 
Bonn government’s coordinator for 
German-American cooperation. 

"Germany used to be a domestic 
political factor in the United States, when 
Berlin was associated with the defense of 
Western freedom, but that’s now fin- 
idjed,” Mr, WddenfeW said. ‘*There are 
new ethnic and trading patterns in die 
United States oriented more toward Asia 
and 1-atin America. And the new polit- 
ical class in America is' much less in- 
terested in Europe’s strategic value.” 

Besides the empty ambassador’sperch 
— soon to be filled by John Kornolum, 
th<» State Department’ s chief diplomat for 
European affairs — Gomans paint to an 
absence of congressional visits as proof 

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During the 12 months before the U.S. 
presidential election last November, only 
Senator Richard Lugar, an Indiana Re- 
publican, visited Germany, 
v. Washington’s apparent lack of in- 
flfiest has been reciprocated by Ger- 
many’s focus cm domestic and Euro- 
pean affairs. _ 

“NATO and the alliance with the 
United States no longer have the same 
influence on Goman* grand strategy, 
former Chancellor Helmut Schmidt 
writes in foe current issue of Foreign 

See GERMANY, Page 6 

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reliability not to undermine the value of 
the continent’s new money. 

In using words like "discrimination" 
and "monetary racism," newspapers 
made dear they felt Italy was exper- 
iencing an injustice that surpassed the 
normal low blows of intra- European 
politics, with Germany playing an anti- 
(talian central role. From an Italian point 
of view, it went beyond rationality and 
into some kind of subterranean sub- 
jectivity for the commission to say that 
Italy, with an estimated 1997 deficit of 
3.2 percent of gross domestic product, 
was an iffy candidate for the first wave 
of the euro, while Belgium, with the 
highest debt burden in the European 
Union, was considered a sure thing. 

But racism? "That’s exaggerated,” 
said Carlo Azeglio Ciampi, the finance 
minister, an interview. Another high 
Finance Ministry official described the 
word as a ‘ 'dramatization * ’ and a "non- 

At the same time , though, the official 
said: “There is this bias that whatever 
we do is fudging and that our efforts are 
not real. People do talk us down. It is 
true that the greatest sinners must re- 
strain themselves, and we've been fant- 
astically good in turning things 

Beyond notions of racism or pre- 
judice, the discussion about Italy 
seemed to perpetuate the image of a 
Europe unable to do much about un- 
employment but engulfed in petty dis- 
putes about decimal points attached to 
abstract economic performance targets. 
For the Italians, there is the even more 
jagged irony that European Union 
seems ready to reject them and their real 
desire for a common currency, while 
welcoming the Germans who in the 
majority want little part of if 

The tension about Italy’s presence in 
the first group of euro countries goes 
back to Germany's original concept for 
a monetary union as part of the 
Maastricht Treaty negotiated in 1991. 
Jacques Delors. who was commission 
president then, has said that Germany 
wanted no more than six or seven coun- 
tries in the initial phase. According to 
Mr. Delors, die idea of a wider, clearly 
less homogeneous group has created 
"anguish” and “panic’' in Germany, 
but foe problem, he insists, is a German 
rather than an Italian one. 

. On the strictly financial level, the 
Germans, notably the Bundesbank, 
have expressed a lack of confidence that 

See ITALY, Page 6 

> r . 

Stunned Iranians 
Dig Out of Quake 
That Killed 2,400 

TbrAwocuvd I*Iru 

An Iranian TV image showing a man weeping over a dead child Sunday. 

Ctmptlfd try Ovt Sutf Fn m Dup-acim 

QAEN. Iran — The death toll from a 
huge earthquake in Iran rose 10 nearly 
2,400 on Sunday as rescue teams dug 
through thousands of flattened houses, 
accompanied by the wailing and sob- 
bing of grieving relatives. 

The number of injured in the quake, 
which hit Saturday, is 6.000. the official 
news agency. IRNA, said in a report 
from Mashhad, capital of Khorasan, the 
stricken province, which borders Af- 
ghanistan and Tajikistan. 

About 130 aftershocks shook what 
was left standing, forcing tens of thou- 
sands to camp in the streets of damaged 

By Sunday, thousands of volunteers 
from unaffected areas had poured into 
foe villages and towns in a convoy of 
trucks, pickups and buses to help. They 
dug through the nibble with bare hands 
to look for bodies. Others hamterf out 

Most of foe damage was in foe 100- 
tdlometer (60-mile) stretch between 
Biijand and Qaen, a region dotted by 
poor villages and mud huts. In one of foe 
villages, an elementary school col- 
lapsed. burying 1 10 girls under jagged 
slabs of concrete and steel 

Some 2,000 of the dead were from 
villages around Qaen, 394 from foe city 
of Bnjand and 2 from a nearby town, the 
Iranian agency said. 

Interior Minister Ali Mohammed Be- 




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Russian Women: Dazzle and Drudge 

By Alessandra Stanley 

New York Tunes Service 

MOSCOW — Glimpsed on a street 
comer or subway, even the prettiest 
Russian girl looks severe, sullen or 

Catch a Russian woman receiving 
guests at home, or at a party, and the 
transformation is almost hallucinatory. 
A stone-faced matron just back from 
foe tractor assembly line will don a 
frilly frock, push her swoDen feet into 
high heels and smile as she forces cu- 
cumbers. blini and vodka down a vis- 
itor’s throat. A young girl will flirt, her 
mother will coddle and scold, and both 
will serve guests, particularly male 
ones, with traditional Asian deference. 

The duality within Russian women 
is startling and, even in Moscow, the 

most cosmopolitan and affluent of 
Russian cities, inescapable. 

Seventy years of socialism, with its 
cramped communal apartments, work 
collectives, company-sponsored 
group vacations and constant surveil- 
lance and snitching, tore away a sense 
of privacy. Rnssian women created 
their own makeshift screens of privacy 
in public places • — foe glazed look of 
weary indifference. 

Even today, privacy remains an un- 
imagined luxury for most Russians. 

The grand experiment called com- 
munism was supposed to blur indi- 
viduality and spawn a New Man, but it 
mostly forged a New Woman. 

Soviet society empowered women 
to work outside the home, then 
doubled their load, forcing them to 
hold down jobs and still take care of the 

children, the house and the bureau- 
cratic tangles of everyday survival 
Men were left free to Uve as slaves: 
childlike irresponsibility at home and 
total dependence on the state. 

Six years on, democracy has 
brought economic opportunity to 
some, havoc for most, but so far it has 
done little to change foe basic way men 
and women relate. 

' Despite, or perhaps because of, 70 
years of state propaganda about the 
equality of sexes, men and women here 
cling tenaciously to extreme sexual 
stereotypes. Women work like oxen to 
provide for their men and children and 
still pride themselves on maintaining 
an extravagant form of femininity. 
Women eagerly greeted the West- 

See RUSSIANS, Page 9 

sharati said in Tehran that initial es- 
timates put the extent of destruction in 
the two heavily damaged cities at 200 
billion rials ($67 million). 

The United States said Sunday it was 
prepared to provide humanitarian aid. 

If Washington receives a request 
from a third party, "we will provide 
contributions" through a nongovern- 
mental organization "such as the Red 
Cross or the Red Crescent," said a 
White House spokeswoman. Mary El- 
len Glynn. 

The United States has not had dip- 
lomatic relations with Iran since foe 
1979 hostage-taking at foe U.S. Em- 
bassy in Tehran; in addition, the United 
States maintains an almost total eco- 
nomic embargo against Iran, which it 
accuses of being a leading sponsor of 
international terrorism. 

France sent a cargo plane carrying 39 
tons of blankets, tents, clothing and food. 
The aid will be handed over to the Red 
Crescent in Mashhad, the French For- 
eign Ministry said. 

Switzerland sent a nine-member res- 
cue team and dogs trained for rescue to 
help search for survivors. But Iran 
turned down the offer of a bigger con- 
tingent of 100 people, saying it was 
most in need of food, medicine and 
temporary shelters. 

King Fahd of Saudi Arabia ordered 
two C-130 cargo planes to Iran with 
tents, blankets, rugs, food and medicine, 
the Saudi Press Agency reported. The 
emir of Kuwait, Sheikh Jaber al Ahmed 
as Sabah, also ordered foe immediate 
shipment of aid, as did foe cabinet in 

A United Nations official flew to foe 
quake area Sunday to assess damage 

See QUAKE, Page 6 

Yen’s Overnight Recovery 
Gives Rise to Suspicions 

Bank of Japan Got What It Wanted, but How? 

By Carl Gewirtz 

International Herald Tribune 

PARIS — The suddenness and fe- 
rocity of the yen’s move in the foreign 
exchange market last week left no time 
to seek explanations about foe timing — 
not that there were any. Instead, there 
was just a frenzy to adjust to what 
analysts were calling a possible sea 
change in sentiment about the cur- 

rency's outlook. 

The dollar finished Friday at 120.20 
yen, a hefty 3 percent fall on foe day. 
giving it a 5 percent loss for foe week. 
The yen surged across foe board, up 
nearly 6 percent for the week against 
other Asian currencies and about 3 per- 
cent against the European currencies. 

Analysts were stunned by foe recov- 
ery of foe yen. which at one point Friday 
traded at a level not seen since late 
January. The closing rate against the 
dollar was foe best since early March. 
Analysts who had been predicting that 

COMMERCE, ZAIRE-STYLE — Smugglers slipping goods off a ferry coming from Kinshasa that 
docked in the Congo capital, Brazzaville. In Zaire, the rebels resumed their advance on the capital. Page 6. 

Deep Blue Defeats Kasparov, SVz -2% 

NEW YORK (AP)— In a dazzling 
bourlong game Sunday, foe IBM com- 
puter Deep Blue demolished an ob- 
viously overwhelmed Garry Kasparov 
and won the six-game, tnan-versus- 

machiae chess match. 

The match score of 3J6 points to 2-16 
points was achieved with victories by 

Deep Blue in Games 2 and 6 and three 
draws. The 34-year-old Russian grand- 
master won foe first game, on May 3. 

The computer’s victory after only 19 
moves and just over an hour’s play in 
the decisive sixth game stunned hun- 
dreds of spectators and chess experts. 
Mr. Kasparov, playing foe black 
pieces, resigned. He walked out of the 
room, waving his arms in distress. 

Deep Blue’s match victory was tbe 
first by a chess-playing computer in a 
traditional format. 

Earlier article , Page 3. 


A New Battle firm Over the Golan 


Drug-Money Probe Targets Mexico 

Books Page 9. 

Crossword Page 9. 

Opinion .... — Page 8. 

Sports Pages 16-18. 

the dollar would rise to more than 130 
yen now see a new trading range of 1 18 
to 123 yen to the dollar. 

The most stunning aspect of foe yen ’s 
new strength is the absence of any rea- 
son to explain it. 

Moreover, the pattern of this mys- 
terious performance — beginning 
Thursday when most of Continental 
Europe was on a holiday that would 
extend through the weekend — looks 
suspiciously like foe market turnabout 
that occurred last November over foe 
shortened Thanksgiving week in North 
America, when foe dollar for no ap- 
parent reason began its liftoff from 1 1 1 
yen and 1-51 Deutsche marks. 

Now, as then, there was no overt 
intervention by central banks to influ- 
ence market sentiment. But now, as 
then,' there is a widely held suspicion 
that, central banks were active behind 
the scenes pushing rates, creating the 


Hailing the Surge, Tokyo 
Vows to Keep Its Hand In 


Pago 7. 

The IHT on-line Iittp:/ ; vvv. , w.ih! com 

North Korean Army Declares 4 War ? on Famine 


TOKYO — North Korea announced 
Sunday that its armed forces would join 
an all-out battle against foe nation's 
food shortages. _ 

In a sign of growing desperation over 
how to feed Its people, a report on 
Korean Radio, monitored in Tokyo, said 
foe armed forces would take on any 
agricultural task to ensure a "bumper 
harvest” this year. 

Analysts who study North Korea said 
foe announcement could also be an an- 

swer to some Western nations’ reluc- 
tance to give aid to a nation that has 
managed to keep 1.1 million troops un- 
der aims despite its economic plight. 

The radio report said meetings of 
commanding officers and soldiers from 
foe aimy, navy and air force; Com- 
munist Party officials, and people from 
all walks of life had decided on a war on 
food shortages caused by two years of 
record floods. 

Tbe report said that soldiers ‘must 
further solidify the unity of foe army and 

people ami achieve a bumper harvest fois 
year without fail by launching into the 
struggle to assist rural areas and actively 
contnbute to agricultural production.” 

Devastated by floods in 1995 and 
1996, North Korea needs at least 13 
million tons of additional food this year 
just to meet basic needs, a United Na- 
tions food aid agency said recently. Hie 
authorities have said that food supplies 
would run out by tbe end of April. 

See KOREA, Page 9 

By Velisarios Kartoulas 

International Herald Tribune 

FUKUOKA, Japan — Tbe Finance 
Ministry set foe stage Sunday for more 
drama in foreign-exchange markets this 
week as it applauded tire. yen’s recent 
surge against foe dollar and warned that 
Tokyo would intervene to prop up the 
currency if it slipped again. 

Finance Minister Hiroshi Mhsnzuka 
and Eisuke Sakakibara, a senior min- 
istry official known as “Mr. Yen” for 
his sway over foreign-exchange mar- 
kets, both welcomed the yen’s 5pencent 
surge against foe dollar last week. 

Ifre yen’s persistent weakness has 
been a source of concern for foe Group 
of Seven industrialized nations, which 
hinted last month that it was unhappy 
with foe yen’s dramatic depreciation 
against the dollar. 

Mr. Sakakibara, director-general of 
foe Finance Ministry’s Internati onal Fi- 
nance Bureau, joked Sunday that for- 
eign-exchange dealers finally appeared 
to have understood the group’s message 
about a stronger yen. 

“It’s like cold Japanese sake,” he 
said. "It takes time to hit you.” 

Mr. Mitsuzuka also warned that if 
markets started to move in foe wrong 
direction again, Japan would jump in, 
selling dollars to support the yen. ^We 
will continue to monitor foe markets 
closely and will take appropriate steps at 
the appropriate times,” he said. 

Tokyo is trying to bolster foe value of 
foe yen against the dollar to undermine 
foe soaring competitiveness ofJan^I 
exports. Tl hopes a stronger yl^wS 
slow foe increases in SaptmYcux^. 

S** YEN, Page 9 

Firestorm Over the Golan / An Israeli Myth Punctured? 

General Dayan Speaks From the Grave 

By Serge Schmemann 

Nn' York Times Service 

J ERUSALEM — It is an article- of faith 
among Israelis that the Golan Heights were 
seized, in the 1967 Middle East war to stop 
Syria from shelling die Jewish settlements 
down below. The future of die Golan is central to 
the search for peace in the Middle East, and 
much of die case against returning it to Syria 
rests on the fear of reviving that threat. 

But like many of Israel’s other founding le- 
gends. this one has come under question, and 
from a most surprising quarter Mosne Dayan, the 
celebrated commander who, as defense minis ter 
in 1967. gave the order to conquer die Golan. 

General Dayan died in 1981. But in con- 
versations with a young reporter five years before 
that, he said he regretted not having stuck to bis 
initial opposition to storming the Golan Heights. 

There reaHy was no pressing reason to do so, 
he said, because many of the firefights with the 
Syrians were deliberately provoked by Israel, 
and the kibbutz residents who pressed the gov- 
ernment to take the Golan did so less for security 
than for the farmland. 

General Dayan did not mean the conver- 
sations as an interview, and the reporter. Rami 
Tal, kept his notes secret for 21 years — until he 
was persuaded by a friend to make them public. 
They have been authenticated by historians and 
by General Dayan's daughter Yael Dayan, a 
member of Parliament, and were published in the 
weekend magazine supplement of the news- 
paper Yedioth Ahronotn two weeks ago. 

Historians have' already begun to debate 
whether General Dayan was giving an accurate 
account of the situation in 1967 or whether his 

version of what happened was colored by his 
1973 MJ 

disgrace alter the 1 973 Middle East war. when he 
was forced to resign as defense minister over the 
failure to anticipate the Arab attack. 

But on a more immediate level, the general's 
comments play directly into the current dispute 
over whether the Golan Heights should be re- 
turned to Syria in exchange for peace. The 
government of Prime Minister Benjamin Net- 
anyahu is firmly opposed to returning the Golan, 
contending that the high ground is vital for 
Israel's security. 

“Look, it's possible to talk in terms of ‘the 
Syrians are bastards, you have to get them and 
this is the right time,' and other such talk, but that 
is not policy.'’ General Dayan told Mr. Tal in 
1976. “You don't strike at die enemy because he 
is a bastard, but because he threatens you. And 
the Syrians, on the fourth day of the war, were 
not a threat to us.” 

According to the published notes. Mr. Tal 
began to remonstrate. “But they were sitting on 
the Golan Heights, and — " 

General Dayan interrupted: “Never mind 
that. After all, I know how at least 80 percent of 
the clashes there started. In my opinion, more 
than 80 percent, but let’s talk about 80 percent. It 
went this way: We would send a tractor to plow 


Moshe Dayan in 1980 t, below. 
An Israeli sentry keeping 
tcaich in 1968 from a bunker 
on the Golan Heights, now a 
major stumbling block in the 
Middle East peace process. 

[■arid Riibiogcr'Thr V* Uct Tuan* 

some area where it wasn't possible to do any- 
thing. in the demilitarized area, and knew in 
advance that the Syrians would start to shoot If 
they didn't shoot we would tell the tractor to 
advance farther, until in the end the Syrians 
would get annoyed and shoot And then we 
would use artillery and later the air force also, 
and that's how it was." 

G ENERAL Dayan’s resistance to 
storming the Golan Heights in the first 
days of the 1967 war is established 
histoiy, as is his abrupt change of mind 
on June 9, the fourth day of die war. when he 
called the northern commander directly — by- 
passing the chief of staff, Yitzhak Rabin, and the 
prime minister, Levi Eshkol — and ordered him 
to go to war against Syria. 

The common wisdom is that General Dayan 
was wary of stretching Israeli military resources 
until the wars with Egypt and Jordan were 
settled, that he feared provoking the Soviet Un- 
ion by an attack on its main client-state and that 
the difficult and uncertain offensive would cost 
many lives. The swift victories over Egypt and 
Jordan then supposedly changed his mind. 

But in the conversations with Mr. Tal, General 
Dayan raised another consideration. “What he 
told me.” Mr. Tal said, “what is quoted in the 

conversation, is dial he understood even in time 
of war that we would be compelled to return 
most of the territories that we won if we wanted 
peace with the Arabs.” 

In the Golan Heights. General Dayan an- 
ticipated that Israeli fanners would waste no 
time settling on the fertile land, making it dif- 
ficult subsequently to withdraw. 

The general said in his conversations with Mr. 
Tal that the kibbutz leaders who had urgently 
demanded that Israel take the heights had done 
so largely for die land. 


• kibbutzim there saw land that was good 

for agriculture,” be said. “And you must Fe- 
rn agricultural 

member, this was a time in whicr 
land was considered the most important and 
valuable thing." 

Mr. Tal asked, “So all the kibbutzim wanted 
was land?” 

General Dayan answered: “I’m not saying 
that Of course they wanted the Syrians to get out 
of their face. They suffered a lot because of the 
Syrians. Look, as I said before, they were sitting 
in the kibbutzim and they worked the land and 
had kids and lived there and wanted to live there. 
The Syrians across from them were soldiers who 
fired at them, and of course they didn’t like iL 

“But I can tell you with absolute confidence, 
the delegation that came to persuade Eshkol to 

11k Viwwwi fVn* 

rake the heights was not thinking of these things. 
They were think ing about the heights’ land. 
Listen, I’m a fanner too. After all. I’m from 
Nahalal, not from Tel Aviv, and I know about iL 
I saw them, and I spoke to them. They didn’t 
even try to hide their greed for that land." 

That contention was hotly denied by Muky 
Tsur, a leader of the United Kibbutz Movement. 

.“For sure there were discussions about going 
up the Golan Heights or not going up the Golan 
Heights," he said, “but the discussions were 
about security for the kibbutzim in Galilee. I 
chink that Dayan himself didn’t want to go to the 
Golan Heights. This is something we’ve known 
for many years. But no kibbutz got any land from 
conquering the Golan Heights. People who went 
there went on their own. It’s cynicism to say the 
kibbutzim wanted land.” 

U.S. Holds Iraqis Who Aided CIA Plot to Oust Saddam TRAVEL UPDATE 

By Tim Weiner 

IVw York Times Service 

WASHINGTON — A group of Iraqis 
who worked with the Central Intelli- 
gence Agency in a failed attempt to 
undermine President Saddam Hussein 
and were offered refuge by the U.S. 
government are now in jail in California, 
facing expulsion from the country. 

The proceedings against them are 
secret, but court documents and inter- 
views show that at least 13 of the 
refugees have been accused by the Im- 
migration and Naturalization Service of 
being “a danger to the security of the 
United States. 

Government officials and lawyers for 
the accused said the charges stemmed 
from the Federal Bureau of Investiga- 
tion’s suspicions that some or all of 
them might be Iraqi spies or potential 
terrorists. They are seeking political 
asylum in the United States, but if the 
accusations against them are upheld by 
immigration judges, they could be de- 

ported. possibly to Iraq. 

In telephone interviews from jail, 
four of the men insisted that they were 
not secret agents for Saddam Hussein, 
but bad been falsely accused and were 
victims of fratricidal infighting among 
the resistance groups. The Iraqis in cus- 
tody include defectors from the Iraqi 
military who joined the CIA-backed re- 
sistance groups, die Iraqi National Ac- 
cord and the Iraqi National Congress. 
They fled their country with their fam- 
ilies after the secret operation collapsed 
in disaster last year. 

Ali Yasin Mohammed Karim, who 
said he was a 35-year-old doctor of 
radiology who worked with the Iraqi 
National Congress, said in a telephone 
interview from jail that his incarceration 
was “a mystery to me." 

“We came to this land legally, on 
account of the U.S. government, and 
they put us inside of a jail." he said. 
“We worked with people more impor- 
tant than the INS — with the CIA. 1 am 
a doctor of radiology, nor a radioactive 

substance. I have a death penalty against tiy to undermine the Iraqi leadership. The flilnQ Wire fn T^nlcfpr 
me from Saddam Hussein. So I think it clandestine effort began shortly after the lu Mwuiam 

Gulf War ended and went on for five 
years, without success. The two groups. 

is not possible that I am his agenL 
Where is the law? I came here legally. I 
did nothing wrong.” 

The court records available in the case 
do not reflect the specific basis for the 
charges against die jailed men. Carole 
Florman, a spokeswoman for the Justice 
Department, said the federal regulation 
allowing a political asylum claim to be 
denied on national security grounds was 
“very vague and broadly constructed.” 

She said immigration officials had 
.not denied the jailed men’s requests for 
asylum, but had referred them to im- 
migration judges for further review. 

“The INS has not determined whether 
it will argue strongly against the requests 
for asylum.” she said. “We are very 
much in the middle of the process. ” The 
immigration service would not comment 
on the case, nor would the CL A 
The Iraqi National Accord and the 
Iraqi National Congress had major roles 
in a S20-million-a-year CIA operation to 

Lagos Ruler Sows Idea of Run for President 

.We*- York Times Senice 

LAGOS — Although new elections 
have been scheduled for next year, Ni- 
geria is beginning to see strong signs 
that the military, which annulled the last 
elections four years ago. intends to hang 
on to power here indefinitely. 

The general who emerged in 1993 as 
Nigeria's leader, Sani Abacha. has al- 
lowed the impression to grow that he 
may run for president himself, and Ni- 
geria's main political parties are falling 
over themselves to enlist him as their 

Meanwhile, Moshood Abiola, the 
man widely believed to have won the 
1993 election remai ns in jail for a fourth 
vear. and Don Etiebet, the one politician 

who might have put up a serious chal- 
lenge to General Abacha, dropped out of 
contention last month as a candidate. 

Mr. Etiebet 3 former oil minister 
under General Abacha. resigned from 
his own parry after an interpaitv feud 
and joined the increasingly powerful 
United Nigeria Congress Party, which 
supports General Abacha's continuing 
in power by being elected president. Mr. 
Etiebet’s announcement hinted that he 
had been pressed to change his politics, 
and it came three weeks after he had 
been arrested, the formal reason for 
which remains unclear. 

General Abacha’s public position is 
that he has not made up his mind wheth- 
er to run, but thar it is up to Nigerians to 

call on him to do so — precisely what 
the leading members of Nigeria’s other 
four political parties are already doing. 

The former chief justice, Mohammed 
Bello, has said there is no constitutional 
obstacle to the military leader resigning 
from the army to run as a civilian. 

The idea of General Abacha running 
for president is galling to many, es- 
pecially in southern Nigeria, which has 
traditionally been at odds with the north, 
the region from which most of military 
leaders have come. 

General Abacha took over the lead- 
ership of Nigeria in 1993 after a short 
period of interim government, ostens- 
ibly to prevent the country from falling 
into ethnic warfare. 

along with the stateless Kurds of northern 
Iraq, were crippled by internal squabbles 
and suspicions thar the resistance was 
penetrated by Iraqi intelligence. 

On Aug. 31. the operation collapsed 
when the Iraqi military and secret police 
srormed into the Kurdish areas of north- 
ern Iraq. The Iraqi forces seized control 
of towns that had been protected by a 
U.S.-led security zone since the end of 
the 1991 Gulf War and had served as 
bases for the resistance. 

The Iraqis jailed in California were 
among a group of 600 men, women and 
children who fled for their lives after 
that invasion. Along with two other 
groups of about 5,500 Iraqis and Kurds 
who had worked with the U.S.-led co- 
alition forces and with relief organi- 
zations in northern Iraq, they sought 
help from the Americans. 

After gathering at a NATO air base in 
lncirlik, Turkey, they were flown by U.S. 
military planes to Guam in the Pacific 
Ocean. They' spent five months there at 
Andersen Air Force Base, where they 
were told to apply for asylum. As they 
waited while the authorities processed 
their applications, they received lessons 
in American civics and the English lan- 
guage. They also underwent interviews 
and’security checks by the FBI. 

Southwest Airlines has collected its 
second straight first place in an annual 
U.S. airline quality rating by university 
researchers. It was followed by Amer- 
ican, United, Delta, Continental and 

This Week* s Holidays 

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

MONDAY: Colombia. Israel. Venezuela. 
WEDNESDAY: South Korea. 
THURSDAY : Pjragiuy. 

SATURDAY : Cuba. n*wj>. 

Sources; JJ* Morgan. Reuters. Bloomben;. 

With Conflict 
As Backdrop, 
Pope Lauds 
The Lebanese 


By Celestine Bohlen 

New York Times Service . 


IXnMras Farahr 

BEIRUT — By early morning 

Transportation Safety 

BEUING (Reuters) — Chinese lead- 
ers called Sunday for better transpor- 
tation safety and stricter investigations 
into accidents after a recent plane crash 
and rail disaster that together killed at 
least 135 people. 

China should immediately begin a 
nationwide inspection into accident- 
prone industries such as transportation, 
the Xinhua press agency quoted Deputy 
Prime Minister Wu Bangguo as say- 

Sunday, hours before Pope John 
was to celebrate Mass, several hundred 
thousand people were already streaming 
into a vast coastal arena built on land 
rec laime d from the sea with bits of 
buildings destroyed in Lebanon's lorfg 
civil war. 

The Mass was the highlight of Pope 
John Paul's two-day visit here, his first 
to the Middle East as pontiff, and local 
commentators said it drew the largest 
gathering in Lebanon since mtemecine 
fighting first broke out here more than 
20 years ago. 

in his homily, delivered under a bril- 
liant sunshine that matched the crowd ’s 
mood, the 76-year-old Pope aga/m 
called on Lebanon to reaffirm its specif 
role in the Middle East, where it lorig 
had die reputation as a land where 
Christians and Muslims, divided even 
among themselves, could live together 
in harmony. 

“At this exceptional assembly We 
wish to declare before die world (he 
importance of Lebanon, its historical 
mission, accomplished down the cen- 
turies.” the Pope said, speaking m 
French. “A country of many religious 
faiths, Lebanon has shown that these 
different faiths can live together in 
peace, brotherhood and cooperation.” 

But the strains of Lebanon's fragile 
political arrangements, which ostens- 
ibly maintain a balance of power be- 
tween Muslims and Christians, could be 
heard as chants of “liberte” swelled up 
from the crowd, a faint echo of the more 
emotional outpouring that greeted the 
Pope on Saturday night when he met 
with about 40,000 young people at a 
shrine outside Beirut 

For many Christians here, the Pope's 
visit was a chance to vent frustrations afa 
time when they feel politically margin- 
alized and stifled by die heavy influemr^ 
wielded here by neighboring Syria. 

Complaints of human-rights viola- 
tions, coupled with the silence imposed 
on any criticism of Syria’s actions with- 
in Lebanon, gave the chants of "free- 
dom” and "justice" loaded meaning. 

But the Pope, while stressing at every 
stop the importance of Lebanon's in- 
dependence and sovereignty, stayed 
away from any direct references either 
to the Syrian presence or to the Israeli 
occupation of southern Lebanon which 
many Lebanese — Muslim and Chris- 
tian — resent 

One reason for the Pope *s visit was to 
sign the so-called papal exhortation, -a 
lengthy document that was the result of 
a synod of Lebanese Catholic bishops 
that concluded in Rome last year. The 
papal document, released Sunday, 
stopped short of calling for the outright 
withdrawal of Syrian and Israeli forces 
that the bishops themselves had em- 
braced in their own joint declaration last 

In his exhortation, which mainly ad- 
dressed the need to rebuild Lebanon^ 
Catholic communities after the devast- 
ation of the war, the Pope said he was 
“aware of the mosr important current 
difficulties." Among others, he listed 
the “occupation in southern Lebanon.-” 
and “the presence of non-Lebanese 
forces.” as well as the “danger of ex- 
tremism and the impression among 
some that their rights are thwarted.” jb 
If the Pope's language was circum- 
spect, it was in part because, as oqe 
Vatican official put it. “there are some 
situations in which you put up with evil 
for a while on the basis that is not 
permanent.” Saturday night, at the 
shrine to the Our Lady of Harissa, which 
stands atop a hilltop north of Beirur 
overlooking the Mediterranean, the 
Pope met with a jubilant crowd of young 
people who were waving colored 
handkerchiefs and chanting “John Paul 
II. we love you." 

The Pope encouraged the youths. ‘*1 
see you pay attention. I see you are 
serious and I see you applaud when you 
should,” he said, speaking in a strong 
clear voice that belied his slow gait aijd 
stooped posture. 

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German Passport Holders 
heading for Singapore in 
May. 50% off at the 
stylish boutique hotel in 
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SJp For Resmaztctm 

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Triplets Again 
For U.S. Woman 

The AssociojciI Prc\~. 

PASADENA. Maryland — 
Twelve years ago. Paula 
Robinson gave birth to triplets. 
Now she has done it again. 

"Our first sonogram said 
we were going to have one 
baby." she said Sunday on 
returning: home after' the 
births Wednesday. But on the 
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congratulations again, it’s 

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I>nl -""‘""\' Inquiry 
Thele ^ Targets Mexico Agency 

5 ^^^ Power Brokers Ran 'Slush Fund U.S. Says 




Kasparov Faces Uphill Fight to Defeat Computer 

GAME 5 — King's Indian Attack 

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*'» toceVeh^ * a v.;, pfe '- , ei»akNt 

w By John Ward Anderson. 
Molly Moore and Douglas Farah 

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.. L 'PUnOn ... r 

ihouijajjj Masi The L'.S. Justice Department is in- 

a v A ; t VWUgrting allegations that some of 

claimed fv° dslal Mexico s top business and political 

tws'sldincK h m ^ v ^7 P 0 ^ brokers used a Mexican gov- 

civjj v Cilr< >\ed m | H j. emment agency for criminal enterprises 

that included laundering drug profiLs and 
Johr P-! ‘£ ss the k i other illicit money through die agency's 

Was.***^ vs - 'r k .,? c ™“ nis “ d »W. S . 

CD -.: Hast ac ^ n K ' sources familiar with the inquire said, 

^jmentaiors .. A focus of the investigation, the 

; n Leban™. ■ 8 & sources said, is whether Raul Salinas de 
?ri. s Ilr ^t broke n Sl ^ Hb ; P ortari - older brother of former Pres- 
- j- v ago. w n t idem Carlos Salinas de Gonari . used the 

In non-ilv deli agency — a federal food program 

star.: sunshine ihatn, * r4d nu- known as Conasupo — to shield cocaine 
m ypd. tr.c 7&A. shipments into the United States and to 

cs^ed on Lebanrm ear ' 0ld fW" launder drug money for a narcotics ring 
[ole in ihe \fidd5, c eifT C 4 }fBawn “ * e Gu,f caneL 
had Jhe renur^w ***■ »W- i A* d« dme - the Gulf cartel, led by 
Cfcri<iiar S N and \» 0n . a4 a Iw'"' ^ arcia Abrego. was Mexico's 

amancr them^i ' Ius,lnii - 4wJ -biggest and most pow erful drug ring. 

:n hurmorn e> - Ct -'uld ta? 7 Raul Salinas was a high-ranking of- 
'"A» ?biV ~ ■ *' fi c *al at the food agency for part of his 

w-jsh Xce Ph^naJ a ,^ brother's six-year administration and is 

»trn.TTT-r.^* ,, .^' s . ^lore now in prison pending trial on charges 

^bonon. «. v of murder and illegal enrichment. 

^ ^-coniph.ihed ^ ^ A source familiar with the investi- 
rVJ' : Pope ■* gation said the agency became “the Sa- 

"t ■ ' vum 0 oi rna^ ' • Tinas administration "s slush fund. ’ ' where 

i *Y ‘ ^ c:ir ;- n hix ih ou .-^ money from all sorts of corrupt political, 

J,'.\ eren: : r t?1s -or, live, governmental, business and narcotics 

■£‘ : -“^iherhood md dealings was amassed and parceled out. 

F u: 'teim of Le canto “There was an infrastructure within 

.transemem. Z 111 Mexico that includes Colombian and 

b > m.sir:ai:: Mexican narcotics traffickers and high- 

i»sanN1uvsr':>^ChV < ^ eve * government officials acting in 

lit. - - ;har. ; % •'..kJ/ 1,18 '' 1 - concert, and that’s what we’re going 

'Tx-Jrr. 1 "-’ jh after." a source familiar with the in- 

mo:: .«:i A vestigation said. 

or. S»:"Lr- ^.r^h **' ^ • The investigation, which began about 

»i»h a :-L- r ' D3!r - 18 months ago, is being conducted 

«r i::? ^ p_; ni ; JUn ? fc fr jointly by the FBI, the U.S. l>iig En- 

*p'7 , ‘forcement Administration and the 

jj;,."'..' 7;, -7 Treasury DepartmenL While the prin- 

7^ 7^;i*!“.':. . 1 e: 'f rny ^. , cipal targets are Mexican nationals, the 

. : r - wiCisOjc- alleged crimes under investigation took 

'"j'iE^^place in the United States. 

: .f. r ‘ ’-7? Under investigation, sources said, are 

., ' rr, ^ : " r: ’ Carlos Hank Gonzalez and his son Jorge 

■■ ,HankRhon,rich and politically powerful 

y figures who often were considered the 

1 = -■= -iii.a-i'; power behind the 1988-94 Salinas pres- 

idency. Investigators of the Drag En- 
o v " hi* P : r. . v. .r >::^--r Sr ' forcement Agency also are looking into 

k v p ‘r :■ :rT.'- jr. allegations that Carlos Salinas's chief of 
uperi-'r-j? Staff* Jose Cordoba Montoya, and his 

« c-. :n:r. -r.;. J.r:-.: .'private secretary, Justo Ceja Martinez — 

* :r? >>r;.-r rr-x-r...- i-.Wla attended a key meeting that included 
r. c : ■■ : ~z*r. L^ik . Raul Salinas, Mexico’s secretary of the 
:jr.\ ijf 'r navy and Mr. Garcia Abrego. Sources 

dit'feren: :>-»hs r , 

vd 4 •'«"»«» 

x - w..x i.r 

or ;i .sr...v:: ajra 


iinTT. :u>::cr 

B^:r.eP:r-.'.v.> ; .r,'.:^TisF 
>!5p *•'=■ :rT.'-jr.f 

:: : c : . ?•. ;:o. 9 

Oc wUr-L".. r. c ? •• ; Ljt-^sw 

hrwl- .it 

•.liikn — rexerr. 

Q:w ’Vxi-v.'n ’V r : ’-.'pe'^iTr. 

7. -i rrittteE.’ 
ter-.'P'-y .-..-VL-m i-.7: v^ihte 
a Avrscxi jf Ltf?-rj*sCiTAiiB? 
tha! :: S-:re Urfjft- 

papal 7acur.-.rr.:. Tiliisa! Ss. 
■^tnpr-ed -r.-.-r. .-i.r.jW'is 
. ! i s ■ > • na" -.i 

said the agency had been told that the 
men discussed various schemes to use 
state enterprises to launder drug profits 
and ship drugs to the United Stales. 

Earlier diis year, Mr. Garcia Abrego 
was convicted in Houston on drug 
charges, given to 1 1 life sentences and 
fined more than S500 million. 

Stanley Arkin, one of Raul Salinas's 
New York attorneys, described allega- 
tions that his client had used the gov- 
ernment agency for trafficking drugs and 
money laundering as “self-inre rested, 
lying baloney." He said Mr. Salinas was 
being accused because be was the brother 
of the former president. Carlos Salinas, 
who is living m exile in Ireland, is not 
under investigation, the sources said. 

Carlos Argue] les. an associate of Mr. 
Hank Gonzalez, said he was traveling 
and could not be reached. He said Mr. 
Hank Gonzalez had no official position 
with Conasupo during the Salinas ad- 
ministration and that Mr. Hank Rhon. 
had never held a government post. 

“1 don't see how they could have 
been involved in money laundering if 
they had no official position in 
Conasupo." he said. A Conasupo 
spokesman, however, said that Mr. 
Hank Gonzalez was an administrative 
adviser to the agency while he was 
agriculture secretary in the Salinas ad- 
ministration from 1990 to 1994. 

Mr. Hank Rhon did not respond to 
messages left at his office. He has denied 
allegations of ties to the drug trade or 
money laundering, and does not face any 
charges. Carlos Davalos. an attorney for 
Mr. Cordoba, said his client was trav- 
eling and could not be reached for com- 
ment. He said Mr. Cordoba had pre- 
viously denied any wrongdoing and was 
the victim of a public smear campaign. 

Mr. Ceja Martinez could not be 
reached for comment. 

Sources said that investigators were 
focusing mainly on allegations that Raul 
Salinas used his government position 
and influence to launder illicit money 
and to protea drug traffickers, as well as 
allegations that he had received a per- 
centage of the traffickers' profits. 

Basic Commodities Distribution Co., 
or Conasupo, has an annual budget of 
SI. 2 billion. It purchases basic food 
items and distributes them at subsidized 
prices to Mexico's poor. Raul Salinas 
was the agency ’s director of planning in 
1989 and head of one of its main sub- 
sidiaries. Diconsa, from 1983 to 1988. 
According to people familiar with the 
agency, he anaMr. Hank Gonzalez held 
enormous sway and effectively ran it. 

















27. Rel 




4 h3 


29 C4 


5. Bxt3 


30 Qxg6 




31. 03 


7. e4 


32. Re6 




33. Rxg6 


9. Bxe4 


34. Nh4 


10 Bg2 


35. Bd5 


11. Nd2 


36. Re6 


12 Oe2 


37. cxb5 


13 c3 


38. Rg6 


14. U4 


39 Nf5 


15 h4 


4Q. Nxg7 


16. Nt3 


41. Kc2 


17 Mxd4 


42. Kei 


18. B95 

19. 0-0-0 


43. Nxh5 







45. Kbl 


21. Kbl 


46. Re6 


22. hxg5 


47. Re3 


23. Rhsl 


48. g6 


24 Nt3 

25. Rxdl 



49. g7 



By Bruce Weber 

Yuri Ttmti Sen nw 

NEW YORK — Outfoxed by a 
cagey computer in a complex end- 
game. Garry Kasparov was held to a 
draw by the CBM computer Deep 
Blue in their fifth game, keeping their 
rematch tied but forcing Mr. Kas- 

rematch tied but forcing Mr. Kas- 
parov into a difficult position if he is 
to successfully defend the supremacy 
of the human chess player in the final 
game of the match. 

With half a dozen pieces left for 
each side in the game Saturday and 
Mr. Kasparov possessing a passed 
pawn threatening to become a queen, 
the computer — rather than block the 
pawn — pursued his king and forced 
a perpetual check. 

"This is astonishing wizardry 
from Deep Blue." said Maurice Ash- 
lev, an international master. 

"This is fantastic." said Mike 
Valvo. another commentator who is 
also an international master. “The 
computer is showing us new ways to 
play these endgames." 

After a victory for each side and 
then three consecutive draws, the 
score is 2J6-2V6. In Sunday's sixth 
game. Mr. Kasparov needed to win 
with the black pieces — a disad- 
vantage because white moves first — 
to prevail. 

"In that game, S300.000 is on the 
line." Mr. Valvo said, referring to the 
difference between the $700,000 win- 
ner's share of the prize fund and the 
S400.000 that wiU go to the loser. 

Mr. Kasparov, who was visibly 
angry at the end of the game and 
renewed his request to see a printout 
of the computer log from previous 
games, received an ovation after- 
ward from the 500 spectators at the 

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Children waving U.S. and Costa Rican flags as Mr. Clinton departed from the airport in San Jose, Costa Rica. 

Clinton Supports Longer UN Mission to Haiti 

By Peter Baker 

Washing ton Post Senice 

BRIDGETOWN, Barbados — Even 
as he celebrated the triumph of democ- 
racy in the Caribbean during a summit 
meeting here over the weekend. Pres- 
ident Bill Clinton quietly moved to 
shore up the fragile stability of Haiti, 
where be has invested die most energy 
in the region and has the most at stake. 

After largely amiable summit talks 
focusing on trade and drugs with 15 
Caribbean leaders, Mr. Clinton held a 

private meeting with President Rene 
Preval of Haiti to lay the groundwork 
for keeping United Nations peacekeep- 
ing forces m the rurbulent country for at 
least another four months. 

"We are determined to do whatever 
we can to see that democracy survives 
and thrives. PresidentPreval is. as well,” 
Mr. Clinton said before the balf-bour 
meeting Saturday, in which aides said 
that Mr. Clinton signaled his support for 
the idea of an extension and discussed 
ways of structuring the mission. 

About U00 Canadian and Pakistani 

troops remain in Haiti to enforce order 
and protect its vulnerable democracy; 
another 450 U.S. troops mostly perform 
support duties such as construction and 
training. The deployment is scheduled 
to end July 31 , but Mr. Clinton and Mr. 
Preval talked about leaving the troops in 
place until at least November. 

Mr. Clinton considers the restoration 
of democracy in Haiti during a peaceful 
U.S.-led occupation in 1994 to be a 
signature accomplishment of his first 
term. The last thing he wants, according 
to aides, is for dial to unravel. 

Equitable Center in Manhattan. 

•'That was a very’ exciting game 
and probably the cleanest one of the 
match," Mr. Kasparov said. “In a 
match like this, there are many dis- 
coveries, and one of them is that 
sometimes the computer plays very 
human moves. We have ro praise the 
machine for understanding position- 
al faaors very, very deeply." 

“I’m not afraid to admit I am 

afraid." he added, "and I'm not afraid 
to say why I am afraid. It goes beyond 
any chess computer in the world." 

The Deep Blue ream also appeared 
on stage after the game, and was mer 
with catcalls and boos. 

Saturday’s game, like many others 
in the rematch, was one of shifting 
fortunes. Mr. Kasparov used a fa- 
vorite opening called the King's In- 
dian Attack and seemed to be ahead 
early in the game. 

Away From 

• The Pentagon has begun a wide- 

ranging review of rules governing 
social and sexual contacts to deter- 
mine whether all branches of the 
military should adopt die same rules, 
Defense Department officials said. 
The review is a result of several 
cases in which members of the 
armed forces have been charged 
with violating rules that prohibit 
sexual contacts between junior and 
senior officers, and between officers 
and enlisted personnel. (NYT) 

• The former federal inspector of 

Valujet Airlines* maintenance 
was unqualified, investigators have 
found, The Plain Dealer newspaper 
in Cleveland reported. In May 
1 9 96, a ValuJet plane plunged into 
the Florida Everglades, killing all 
1 10 people aboard. fAPJ 

• The number of school-age chil- 
dren living in poverty in the 
Washington suburbs rose by 85 
percent from 1990 to 1994, grow- 
ing three times as fast as for the 
nation as a whole, according to new 
U.S. Census Bureau figures.. (WPi 

• A water-main rupture flooded a 

residential neighborhood in Bal- 
timore 5 feet deep, floating cars 
down streets and forcing dozens of 
people to flee their homes, some of 
them by boat. ( AP ) 

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Never Too Early to Campaign 

. • HOLDERNESS, New Hampshire — It is too warm for ski 
•season in the mountains north of here, and. to the south, it is 
too chilly to swim in Lake Winnipesaukee. But the political 
season is well underway, with White House aspirants for 2000 
■practically tripping over one another. 

Consider the Republicans, who, last week alone, ventured 
-to New Hampshire and delivered speeches that may mark the 
start of their interminable teases about running for president: 
Senator John McCain of Arizona, Senaior Don Nickles of 
Oklahoma, and Steve Forties, not taking a break from his 
■failed bid for the nomination last year. 

This week, it is the Democrats’ turn, with a visit scheduled 
by Representative Richard Gephardt of Missouri, the House 
minority leader. This is his second visit this year. 

* Vice President A1 Gore will appear later in the month, 
■fell owed in early June by Elizabeth Dole. 

$ While New Hampshire, which traditionally holds the na- 
'fion's first presidential primary, is the epicenter of this un- 
- ‘usually early stumping, the preparations extend far beyond, 
these borders. . 

; President Bill Clinton’s would-be successors m both parties 
'are quietly (well, not always quietly) romancing consultants 
: and fund-raisers, commissioning polls and even, starring to 
'“assemble skeletal field operations in pivotal primary states. 

Several Republicans have established political action com- 
: mittees or lobby groups as interim campaign vehicles, in- 
cluding Mr. Forbes and former Vice President Dan Quayle. 

It is particularly unusual for well-known contenders like 
5 Mr. Gephardt to be so active so early. But given the com- 
petitiveness of running for president these days, and the 
'premium on snaring the best consultants, it seems as though 
;the would-be candidates in both parties have decided itis 
| never too early. ' (NYT) 

Starr and Clinton Spar Again 

_ WASHINGTON — The long-standing hostility between 
the Whitewater independent counsel. Kenneth Starr, and 
President Bill Clinton has flared anew m unusually personal 

" - While Mr. Starr has accused the White House of obstructing 
-his inquiry into the Whitewater affair, the admimstroion has 
dismissed that claim as “nonsense" and accused the pros- 
ecutor of conducting a "fishing expedition. 

few June 16th . the International Herald Tribune 
will publish a Special Report on: 


Among the topics to be covered are: 

• The industry’s battle to control costs. 

• A viable future for the supeijurtibo? 

• The affect of record profits on aircraft 

orders- . 

How does European deregulation fit in 

: with gJobal moves to open skies.' 

. . The evolution of inflight entertainm^L 

* 7 HrLS' kribiilit 

The new round of public sniping started with Mr. Stair. In a. 
speech Saturday to Arkansas newspaper editors, he asserted 
that White House lawyers were "duty bound’’ to turn over 
notes of meetings they bad had with Hillary Rodham Clinton 
and complained that their refusal to do so was an “im- 
pediment’ ’ to bis investigation. 

The president responded from Barbados, where he was 
attending a summit meeting with leaders of the Caribbean: “I 
think it has been obvious for several years now we’ve been 
very cooperative and will continue to be." fWP) 


Thomas .Scully, president of the Federation of American 
Health Systems, foreshadowing the warfare among health- 
care providers seeking to minimize their exposure to hefty cuts 
in the battle to balance the budget: "We’re getting to the 
cannibal stage. It’s every man for himself.” (WP) 

v * * / v : • _ _ 

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P.O. Box 1132 


Tel.; 41 32 Ae-5454 54 
Fax.: 41 32/ 654 34 00 


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The Taleban Quietly Ignores Some Big Sinners: Opium-Poppy Growers 

By Kenneth J. Cooper 

HufAinjK'R Pan Service 

' KANDAHAR, Afghanistan — After 
■ the Taleban militia took control of the 
Afghan capital last September, its lead- 
ers vowed to establish the most Islamic 
.state in the world. Two months later, in 
■the planting season in southern Afghan- 
istan's opium poppy fields, the fun- 
damentalist militia denounced the 
flowering crop used to produce heroin 
as un- Islamic, 

But at the start of harvest time here in 
the Taleban's southern stronghold, ma- 
ture fields of white, pink and red poppies 
are in bloom. They splash color even 
inside the war-damaged city of Kanda- 
har, the militia's headquarters, where 
one small plot flourishes across a dirt 
road from die mud-walled central jail. 

In the course of their nearly three- 
year-old fight to rule Afghanistan, the 
Taleban's leaders have cracked down 
— sometimes violently — on the people 
living in the two-thirds of the country 
that has come under their control. The 

Muslim clerics and their followers have 
punished’ harshly women' in dress 
deemed immodest, men with clean- 
shaven chins, adulterers, thieves and 
sports players. 

But they have shown no such resolve 
•with producers of raw material for in- 
toxicants clearly forbidden in the Kor- 
an, Islam’s holy book. 

“There are no signs they have been 
doing anything,” said Angus Geddes. a 
UN official working to persuade 

The country’s biggest poppy-produ- 
cing province, Helmand. borders 
Kandahar Province to the east. Yet de- 
spite the Taleban's professed religious 
convictions, it has not acted with cus- 

tomary zeal to stop poppy cultivation. 
Its relur 

Afghans to grow other crops. 

IS. Stal 

According to the U.S. State Depart- 
ment and the United Nations. Afghan- 
istan harvests at least 30 percent of the 
world's opium poppies. By the State 
Department's reckoning, that makes 
Afghanistan the world's second-largest 

producer of opium poppies. The UN 
Drug Control Pros 

)grazn, using different 
survey methods, estimates that Afghan- 
istan's output now rivals that of Burma 
as die largest. 

More than 90 percent of die poppy- 
growing areas in Af ghanis tan are under 
Taleban control. 

luctance stems -from the damage 
Afghanistan’s economy has suffered 
during nearly two decades of war, the 
revenue derived from a 10 percent tax 
collected on opium and a fear of losing 
popular support from hundreds of thou- 
sands of small growers of poppies. 

“Everyone is growing poppy,” said 
Abdul Rashid, drug control director for 
Kandahar Province. “If we try to stop 
this immediately, the people will be 
against us.” 

Some Taleban leaders have sugges- 
ted to UN officials that they would be 
more inclined to enforce international 

temational legitimacy while condoning 
trafficking in illegal drugs. 

“I've heard that argument; Once we 
get recognition, then we will deliver all 
the good things," said Norbert Holl, a 
UN mediator assigned to negotiate an 
end to the ongoing civil war between the 
Taleban and an allian ce of northern mi- 
litias, including the former government 
of President Burhanuddin Rabbani that 
the Taleban drove from Kabul last year. 

Mr. Rashid said the civil war was 
partly responsible for the continuing 
poppy cultivation. “When we take con- 
trol of the entire country, we will stop 
it,” he said. “In these days, we’re too 
busy with the fighting.’ 

Rather than destroy easily identffi- 

anti-drug agreements and ban poppy 
cultivation if the United Nations and 

Western nations recognized their fun- 
damentalist regime, which no govern- 
ment has done. The hints amount to a 
kind of narco-diplomacy: seeking in- 

poppy Helds ana risk popular 
Wrath. Mr. Rashid said, the Taleban has 
adopted the more difficult strategy of 
intercepting drug shipments along Af- 
ghanistan's 2,400-kilometer (1,500- 
mile) border with Pakistan and 930- 
ktiometer border with Iran. 

Afghanistan’s poppy growers have 
ready buyers who take the opium har- 

vest to labs along the Pakistani border or 
inside Pakistan and Turkey, where it is 
processed into heroin. Most Afghan 
heroin winds up in Europe, routed 
through Turkey, Iran or Central Asia. _ 

Afghans do not consume much opi- 
um or heroin, though hospital personnel 
in Kandahar said they occasionally dis- 
cover surgical patients are addicts be- 
cause they need massive doses of an- 
. esthesia. The Taleban has enforced a 
fern on hashish, a mil der drug used by 
soldiers on both sides of the civil war. 

To A fghan fanners, planting opium 
poppy on at least part of their land 
represents a sensible choice in one of tire . 
world’s poorest countries, where small 
farming and undisguised smuggling ap- 
pear to be the major economic activities. 
Opium poppy pays more and requires 
less water than other crops. It also reaps 
rash advances from buyers to pay for 
fertilizer and seeds. 

“That is the reason we are growing 
this : to make more money,” said Issa 
Khan as he shoveled mud to redirect the 
flow of irrigation water to bis blooming 

poppy fields. * ‘Nobody has asked us to 
stop this.” , 

Farmers have grown poppy alongside 
wheat, fruit trees and spices as insurance 
against the failure of other crops that 
need more water, which is scarce in 
many areas. Because he earns twice as 
much from poppy as he does from 
wheat. Mr. Khan said he planted five 
acres of poppy and four acres of wheat 
during the winter growing season that is 
coming to an end. 

Mr. Geddes said t hat the United Na- 
tions has tried to persuade poppy growers 
they can make as much money from fruit 

orchards, onions and other vegetables. 

Da three verses, the Koran warns 
Muslims against involvement with al- 
cohol or drugs. The Taleban’s enforce- 
ment of those Koranic injunctions is lax, 
compared to other Muslim countries 
that show zero tolerance for illegal 
drags. In Afghanistan, Mr. Rashid said, 
the maximum penalty for drug traffick- 
ing is 20 years in prison. In Saudi Ara- 
bia, whose version of Islam is similar to 
the Taleban's. it is death. 

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In New Fight for Yietnai 
Franchise Count Rises 

Returnees Help to Spread V.S. Influence 

By Mai Hoang 

Washington Post Service 

HANOI — When David Diep Thai of 
Seattle, who was bom in Vietnam, 
opened a coffee kiosk on the shore of 
Hoan Kiem Lake last year, he never 
imagined that one day he would be 
serving espresso to the United States' 
first ambassador to Hanoi. 

Yet Saturday afternoon, with “As 
Time Goes By” playing in the back- 
ground. Mr. Thai chatted with Ambas- 
sador Pete Peterson about the major 
changes under way in Vietnam. 

The occasion was all the more re- 
markable because of the personal his- 
tories of the two. Mr. Peterson is a 
former prisoner of war, and Mr. Thai 
was a South Vietnamese infant who left 
the country on one of the last American 
helicopters to fly put of Saigon, now Ho 
Chi Minh City, in April 1975. 

More than two decades later, both 
men have been welcomed back warmly 
by a country that once shunned and 
condemned them. Although separated 
by a generation, Mr. Peterson, 61, and 
Mr. Thai, 24, are pan of a new American 
presence in postwar Vietnam. Once 
measured in U.S. troop strength, the 
American presence is now gauged by 
the number of corporate foot soldiers 
and franchises descending on one of the 
world's last Communist countries. 

Mr. Peterson, who arrived Friday in 
Hanoi, strolled about the city Saturday: 
Across the street from Mr. Thai's Au Lac 
kiosk is Connecticut-based Carvel ice 
cream. Baskin-Robbins is here and ex- 
*. TGI Friday and Kentucky Fried 
; are scheduled to open their first 
outlets in Ho Chi Minh City next year. 
Mr. Thai himself will soon be selling 
fried chicken at a place he plans to open 
called Cock-a-doodle-doo. 

Although the United States ranks 
ninth on Vietnam's list of tpp investors, 
the American influence here is dramat- 
ic, at least on the surface. 

Mr. That who plans to market his 
fried chicken primarily to the Viet- 
namese marker rather than to expat- 
riates. predicted success, in part because 
the food will be served fast and "the 
price will fit their pocketbooks.” 

Susan Gajete, manager of the Amer- 
ican Club, an expatriate hangout on the 

site Qf the former U.S. consulate here, 
disagrees that Vietnamese tastes are so 
malleable. “You give Vietnamese kids 
cheeseburgers but they still want pkoj ’ a 
popular noodle soup, she said. 

But Mr. Thai said he was confident 
because he has had a hand in shaping the 
market's tastes. He is a Viet Kieu, one of 
the 2 milli on Vietnamese who fled over- 
seas after the war. About 1 million 
settled in the United States, where they 
adopted American tastes feat they then 
introduced to Vietnam. 

“A cultural osmosis takes place in 
Vietnam when Viet Kieu come back, 
because they are always talking about 
America this or America that,” said Mr. 
Thai, whose family used to send pack- 
ages back to Vietnam containing items 
from shoes to music videos. 

Deac Jones, who imports American 
goods to Ho Chi Minh City, said the Viet 
Kieu have been more influential in shap- 
ing local tastes than the inliision of young 
Americans during the war years. “Some 
people remember American icons like 
Campbell’s soup from before the war," 
he said, “but half the population is under 
20. so it doesn't matter with them.” 

“Everyone loves Cindy Crawford,” 
u Thu. 21. 

said Hoang Thi Thu. 21. a Revlon 
salesclerk who sells as much as $300 
worth of cosmetics a day at the Su- 
perbowl, a Ho Chi Minh City shopping 
mall — nor bad business in a country 
where the per capita income is $300 a 
year. Ice skating until 4 A.M. has be- 
come the newest sensation in Ho Chi 
Minh City, and dance clubs are full of 
young people wearing American de- 
signer-label clothes. 

With so much of Vietnam’s youth 
focused on American -style flash and 
consumerism, the old guard has begun 
complaining about the Loss of traditional 
values. “The government is moving 
along vety cautiously because they fear 
social evils from the West,” said a U.S. 
diplomat who requested anonymity. 

Pham Hoang Son. 25. manager of the 
popular Apocalypse Now bar in Hanoi, 
said the very young were losing part of 
their heritage. “If you ask them about 
Vietnam’s revolutionaty heroes. 90 per- 
cent couldn't tell you,” he said. But he 
added that nearly everyone remembers 
Ho Chi Minh because he's “worth re- 

HOPING FOR RAIN — Girls in traditional costume riding on a parade float Sunday during the rocket 
festival in Yasothon, Thailand, about 600 kilometers (375 miles) northeast of Bangkok. Powerful homemade 
rockets are fired during the festival in the belief they will ensure rain during the rice planting season. 

With Kashmir 
As Goal, Heads 
Of Pakistan and 
India to Meet 

- j-yvNtiuri 

A iijTIiKT 




J Cr itic 



i hues to Rettiiil 


China Leader Calls for Unity Queries for Friend of Kim’s Son 


MALE, Maldives — The prime min- 
isters of India and Pakistan meet this 
week in the highest-level negotiations 
between the rival neighbors in four 
years, but diplomats cautioned against 
expectations of a quick breakthrough in 
the peace talks. 

Prime Minis ter Nawaz Sharif of 
Pakistan and his Indian counterpart. Ai- 
der Kumar Gujral, hold their first face- 
to-face talks Monday at a resort on this 
Indian Ocean island nation. The meet- 
ing will be held on the sidelines of a z_. 
summit meeting of the South Asian As— r-- 
sociation for Regional Cooperation. 

Mr. Sharif was named prime minister •• t; , 

in February, and Mr. Gujral took office [> (\f- ; ’ \ ’ f()T (5 

three weeks ago. They have exchanged 
letters expressing their hope that the two 
longtime rivals could ease tensions. 

Foreign Minister Gohar Ayub Khan 
of Pakistan played down the prospects 


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BEIJING — President Jiang Zemin issued a call Sunday 
for increased patriotic education and national unity as 
Beijing faced a renewed territorial dispute with Japan and 
separatist strife in areas populated by ethnic minorities. 

“The patriotic enthusiasm of the people of all ethnic 
groups throughout the country should be turned into a 
mighty force to promote the reform, opening-up, mod- 
ernization and revitalization of die Chinese nation,” Mr. 
Jiang said in a speech reprinted in People's Daily, the 
Communist Party mouthpiece. . 

The speech was delivered to party officials in October, 
but was made public after a dispute between Beijing and 
Tokyo over sovereignty of an island group in the East China 
Sea flared up last week (Reuters) 

SEOUL — South Korean prosecutors have begun ques- 

tioning an associate of President Kim Young Sam's son to 
find out if the younger Kim accepted kickbacks in return for 
influence, state radio said Sunday. 

The Korea Broadcasting System said the associate. Lee 
Song Ho. suspected of managing slush funds for Kim Hyun 
Chul voluntarily appeared before the prosecutors Sunday. 

Prosecution officials were not available for comment. 
Kim Hyun Chul is under investigation over accusations that 
he meddled in state affairs, kept part of the money from his 
father’s election campaign in 1992. and played a role in a 
loans-for-kickbacks scandal involving the failed Hanbo 
Steel Co. He has denied any links with Hanbo. (Reuters) 

Taipei Assails Seoul Over Snub 

Opposition Rallies in Jakarta 

TAJOPEI — The Taiwanese Foreign Ministry on Sunday 
criticized South Korea's decision to downgrade the status 
of Taiwan officials at the East Asian Games. 

“The ministry has ordered its representative office in 
South Korea to lodge a strong protest to the South Korean 
government as soon as possible,” the ministry said. 

The games began in Pusan on Saturday. The ministry 
said South Korea revoked the “distinguished guests” 
status given to three Taiwan Education Ministry officials, 
including Minister Wu Jin. and downgraded their status. 

Taiwan news media said China had pressured Seoul into 
making the move. ( Reuters ) 

JAKARTA — Tens of thousands of supporters of the 
Muslim-led United Development Party held a rally in 
Jakarta on Sunday as campaigning stepped up for the 
Indonesian parliamentary election. 

They were joined by many supporters of another op- 
position leader, Megawati Sukarnoputri, who was ousted as 
bead of the Indonesian Democracy Party by a government- 
backed faction. 

The two opposition parties and President Suharto’s 
ruling Golkar party are the only three parties allowed to 
contend the 425 seats at stake on May 29. The Muslim party 
has made overtures toward Mrs. Megawati in an apparent 
bid to win her supporters’ votes. (AFP) 

of a quick breakthrough. 

:xpectations should not be built up 
because unless the groundwork is there, 
there could be disappointments. Mr. 
Khan said. 

The two states began bilateral talks in 
March after a three-year hiatus marked 
by tension over Kashmir, where of- 
ficials say more than 20.000 people 
have died in a separatist insurgency. 

The foreign secretaries of India and 
Pakistan met in March, followed by talks 
last month between Mr. Khan and Mr. 
Gujral, who was foreign minister before 
being elevated to prime minister. 

Officials said there could be agree- 
ments in a range of areas before the 
quarrel over Kashmir is resolved. 

Mr. Khan said that a settlement over 
Kashmir, the cause of two of the three 
wars India and Pakistan have fought 
since independence in 1947, would lake 
“a long time.” But progress in other 
areas, such as relaxing travel restrictions, 
increasing trade and releasing prisoners, 
could be expected sooner, he said. 

India welcomed his stance. “Thay^ 
makes sense to us because that is what wer 
have been saying, that intractable issues 
cannot be settied overnight," an Indian 
Foreign Ministry spokesman said. 

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A Dissident’s Determined Battle 

After helping to set up an inde- 
China, Han 

pendent trade union in 
Dongfang, a former railroad worker, 
was jailed by the Beijing government 
in 1989 when it cracked down on the 
pro-democracy movement. Released 
in 1991 with tuberculosis, he was 
allowed to go to the United States for 
treatment. After recovering. Mr. Han. 
34. settled in Hong Kong. He recently 
discussed human and labor rights in 
China and Hong Kong with Michael 
Richardson of the International Her- 
ald Tribune. 

Q&A / Han Dongfang 

Q- Tung Chee-hwa. Hong Kong’s 
chief executive-designate, told a 
group of U.S. and British journalists 
this past week that demonstrations 
would still be allowed in the territory 
after China takes over at midnight 
June 30 as long as they do not ad- 
vocate independence for Hong Kong. 
Tibet or Taiwan. Do you believe that 
curbs on freedom of assembly will be 
limited to those areas alone? 

A. The rule of law still applies in 
Hong Kong. Mr. Tung seems to be 
well-intentioned. But how can we 
crust his promise, especially when his 
power comes from the Communist 
Party leadership in mainland China? 

So we must wait and see whether 
what he says turns out to be the case. 

Q. Do you accept Mr. Tung’s as- 
surance chat China’s secretpolice, the 
Public Security Bureau, will have no 
role to play in Hong Kong after the 

A. No. I suspect that their agents 
are already very active in Hong 
Kong. In China, state security is party 
security, party' security is national 
security, and national security is the 
people's security. 

in 1993 after re-entering the country 
through a little-used border check- 

n t/ 

point. Will you remain in Hong Kong 

'■ • 5<r 

after June 30? 

A. Yes. I want to get back my 
fundamental civil right to stay in my 
country. After July 1, when China 
resumes sovereignty over Hong 

Kong. I will be back in my homeland. 
In 1993. ’ 

Q. What are you telling your fel- 
low political exiles from China about 
the risk of being arrested in Hong 
Kong after China resumes sover- 
eignty? Should they stay or leave? 

A. I have been telling them to 
leave. Most are political dissidents 
who came to Hong Kong from China 
by crossing the border illegally. Less 
than 100 remain. China could easily 
have these political dissidents 
charged with illegal border crossing 
and jailed for up to three years. 

Q. You were expelled from China 

when Chinese authorities 
expelled me, they told me F was not 
welcome anymore in China and that I 
had no right to be a citizen. I told 
diem, “Just wait until July 1, 1997, 
then I am going to win.” 

My other reason for staying in 
Hong Kong is that I am a trade un- 
ionist. 1 believe I must stay as close as 
possible to Chinese workers and fol- 
low the situation in China. 

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Han Dongfang is planning to stay 
on in Hong Kong after June 30. 

• Ityi 

Have you been to 




Pon^t miss it. A lot happens there. 

Q- Jf you stay, won’t you be court- 
ing arrest? 

A. It could happen. But Hong 
Kong is not China. Hong Kong 
people support the rule of law. If 
Chinese authorities are going to do 
anything against me through legal 
channels. I think I will get the chance 
to protect myself. I trust the legal 
system in Hong Kong. 

Q. Will you continue to campaign 
for independent trade unions in 

A. That’s what I am doing now as a 
researcher with the Hong Kong 
Christian Industrial Committee and I 
intend to keep doing it. 

Q- Why do you think the work is 

A. In China, trade unions are con- 
trolled by the party and government, 
and they serve the interests of em- 
ployers. not workers. We want un- 
ions that speak for workers. 

Q. Are workers in China better off 

now than they were before the gov* 
eminent started to introduce fre# 
market reforms to the economy and to 
open it to foreign investment? 

A. For a majority of Chinese work- 
ers, conditions are worse. They may 
earn more money, but inflation has 
eroded purchasing power, working 
conditions are often tad and job in- 
security is much more widespread 
than before. As state enterprises lay 
off staff and rural workers move in 
very large numbers into urban centers 
looking for jobs, unemployment is 
becoming a vety serious problem. The 
gap between rich and poor is widen- 
ing. It’s a time bomb for China. 

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Q- Could China allow independent 
trade unions to bargain for better pay 
and conditions without damaging its 
economy or national unity? 

A. The Communist Party has no 
idea how' to resolve China's enca 
mous economic and social problerrtff 
But it won’t allow independent trace: 
unions to start negotiations and col- 
lective bargaining. The workers 
won't keep quiet forever. One day the 
situation will explode and they will 


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The New Voice of French Socialism 

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sociaoan for Regional Ccoiwa-' * 
Mr. Sharif u £ runted tni c> 

« Febrean . me Mr. Gujrai^i 
ifaw week* age. site’. ha'.eajt 
tetters cxpKs^r.c iheirhox^i-. 
tonpime n\is tuuld ea*:-* 
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fif Pakistan pbved down c/tsk* 
nrfa quick break?h:oi£h. 

-• “E\p<vrar:j.-s vwJijik-k&E 
becauw unit is «ouf,J»Gfo* 
there woaiJ be ±^rcnniiiuk * 

Ian si:d. 

The mo states bejjrrJjgdiaL n, 
reft awr a three-;. *c tiaa* nt 
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* »y me re than -0.000 per. 
died ir. a separat:?; ir.arpj 
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naeofs in a raas.--* *-f ss* 
quarrel ever Koihrvr ■> bioM- 
• Mr. Ktun said 2u: e ^JfiwaP 

m . . . 

ICjdtemr. the caae e: re a* k* 
India and Pakistan nw ȴ 
mfepTRitenje un 

fa pff a a ng trade and rele^mcp*- 

expecied sooner fe^io. 

fate wekur.ea h;- »«» ^ 

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taHbeen win?. :n^ 

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By Craig R. Whiinev 

Vi-: lit,;,; K, a 

GONDECOL RT. France — Manine 
Aubrj 1 . a SociaJisi who is running for 
Parliameni in the national elections this 
month, practically has Europe written 
all over her face. 

She looks very much like her father. 
Jacques Delors, familiarly known as 
r" ^ uro P e f° r ^' s service as president 
of the European Union’s executive 
commission from 1«8S until 1995. anil 
shares his view on European integra- 
tion. ^ 

!rvv?T- cap!,tone car cer was the 

1992 Treaty on European Union. None- 
theless, he was recently assaulted by an 
intunated bystander w hile campaigning 
for the new Socialist platform, which 
says the French should nor be required 
to suffer any more economic hardship 
for the sake of achieving the common 
European currency, or euro, which is at 
the core of the treaty. 

But Mrs. Autary, 4b, is also a political 
personality in her own right. A former 
minister of labor, she will certainly get 
another prominent cabinet position if 
the Socialists win in the voting on May 
25 and June 1 . .And she makesclear she 
is more than her father’s daughter in 
more ways than one. 

“The biggest help to me.” she said 


pointedly when asked whether being 
Mr. Delors 's daughter would help or 
hurt her in the election, "is lliut 1 was 
lucky enough to have had both the 
mother and the lather I had." 

The main election issue (his time, she 
said, is nor the need to keep deficit 
spending under control in order to get 
France approved for use of the euro, but 
whether the austerity policies President 
Jacques Chirac's conservative govern- 
ment has imposed over the last two 
yean, were the only way to accomplish 

* ’People in this country are very pro- 
European. but there’s a gulf between 
politics and the real problems people see 
in their daily lives." she said over a 
warming drink in the Cafe de la Barre 
after a cold and rainswept morning on 
the campaign trail in Gondeconrt. adis- 
irict south of Lille. 

"What the French economy needs 
now is not to pul the monetary brakes on 
against inflation — that problem has 
been solved." she said. "What we need 
is to get French consumers buying 
goods again to get economic grow th 

A Socialist government would make 
the euro work and would make France 
prosper, she said. **if we get elected and 
then do what we say." 

But how could they do that, she was 

asked, since opinion polls say the only 
way the Socialists could form a gov- 
ernment would he in a coalition with the 
Communists, and the Communists op- 
pose the common currency outright. 

"There will be only one line on the 
euro," she said, echoing the statements 
of her party’s leader, Lionel Jospin, who 
was trying elsewhere to dispel doubts on 
that score. The Communist Party leader. 
Robert Hue. insisted that the Commu- 
nists would not budge from their po- 

Mr. Jospin has been accused of back- 
tracking on the European positions the 
Socialist Pony took while one of its 
former leaders. Francois Mitterrand, 
was president. 

Mr. Mitterrand negotiated the terms 
of the accord on monetary union for 
France, and fought a close battle for 
ratifleation of the European Union 
treaty in 1992. 

But now . as Mrs. Aubry sees it. with 
French unemployment at the highest 
level since recovery from World War U. 
it is not worth "breaking the country" 
to achieve the common currency, and 
the treaty terms allow leaders' some 
political leeway in deciding whether the 
criteria have been met. 

A key Socialist platform plank calls 
lor a "European economic govern- 
ment" of national leaders alongside the 

<nn | «vir.'|hf \m liw 

Martine Aubry, center, campaigning in Lille for the Socialist Party, says austerity is the issue in this election. 

stem independent central bankers who 
have been calling the European mon- 
etary shots in the period leading up to 
the introduction of the common cur- 
rency. Those bankers will also decide 
monetary policy once the euro comes 
into being in 1999. 

Not that she has anything against 
money professionals. Mrs. Aubry ’s 
husband. Xavier, is- an accountant and 
she is a graduate of the prestigious Na- 
tional School of Administration. The 
school has ofren been derided for train- 
ing the French political elite so highly 

that they have lost touch with ordinary 
people and their concerns. Mr. Jospin, 
Prime Minister Alain Juppe and Mr. 
Chirac attended the school, too. 

Mrs. Aubrv has said she wants her 
party to adapt to new economic con- 
ditions. not to right to keep the status 

■ Poll Is Favorable to the Right 

Government strategists were cheered 
by an fFOP institute poll for the Journal 
dii Dimanche. conducted Friday, sug- 
gesting the center-right had gained 3 

points to stand at 41 jperceni and the 
combined left lost 2.5 points at 38.5 
percent, Reuters reported from Paris. 

It projected the coalition would win at 
least a 100-seat National Assembly ma- 

Bin an IFOP pofiricaJ analyst, Jean- 
Luc Parodi. cautioned against reading 
too much into the poll, noting that 27 
percent of people certain to vote said 
they could still change their minds, and 
that about 100 seats hinged on less than 
three percentage points in the runoff, 
less than the pollsters’ margin of error. 

Paris Jbics to Resist U.S. Meat 

PARIS — The French agriculture minister threatened 
Sunday to ban imports of U.S. meat treated with hor- 
mones. even if the move meant heavy fines for Paris. 

The minister, Philippe Vasseur, also said France would 
require special labels bn American meat as of July I, so 
. that consumers would know its country .of origin. 

The European Union has barred imports of beef pro- 
duced with the aid of synthetic-growth hormones since 
1989, But the World Trade Organization, in an interim 
report issued last Wednesday, agreed urith Washington's 
argument that the ban was not based on any demonstrated 
health risk and was therefore an unfair trade barrier. 

Mr. Vasseur called the U.S. complaint "entirely un- 
friendly." saying he saw no reason * ’to try to impose meat 
on French consumers that they do not want." 

He added: “I say quite clearly, France is entirely 
prepared to pay penalties if that is what is needed to 
prevent hormone-treated American meat from gaining 
entry to our territory, ’ ’ (Reuters) 

Turks Rally for Islamic Schools 

ISTANBUL — Hundreds of thousands'df Turks on 
Sunday protested the secular military's orders that the 
government close Istamic-oriented schools. The rally was 
the largest in the country in decades. 

Although predominantly Muslim. Turkey has been a 
secular republic since 1923. when it was founded on the 
ruins of the Islamic-ruled Ottoman Empire. 

In February, the influential National Security. Council, 
which includes a number of top generals, directed the 
■ W&fare Paneled- ^Ovemmertt' to increase the. comgul*. 
' Soiy education: term from five to eight years. TKat would 
mean shutting down the first three years of tbe religious 
" high schools. 

Those opposedto the schools, which follow an Islamic 
curriculum with several hours of Koranic and Arabic 
'classes, contend dial they are raising a generation of 
young people who will pose a threat to the nation’s 
secular and pro-Wesrem traditions. 

The government has so far dragged its feet on the 
changes. But the schools’ supporters worry that the 
Welfare government — to stay in power — eventually; 
will succumb to the military’s pressure; the rally Sunday 
was the result, an effort to show they had the backing of a 
: substantiaJ number of Turks. (AP ) 

TV Crete Abducted in Chechnya 

MOSCtJW — The kidnapping of a Russian television • 
crew in Chechnya has posed a' new challenge for the 
region's separatist leaders and further soured the at- 
mosphere before scheduled talks with President Boris 
Yeltsin. ... 

Gunmen seized two men. and a woman who were 
working for NTV television Saturday near the village of 
, Samashki. about 30 kilometers (20 miles) west of the 
Chechen capital, Grozny, an NTV. official said. 

It was the latest in a string of kidnappings in the volatile 
Caucasus region, where 21 months of war between the 
separatists and Russian forces have left a legacy of 
bitterness and an area swarming with heavily armed 
men. ' . . ‘ ’ (Reuters) 

Spain Seizes Hashish on Boat 

ALMERIA, Spain — Three Britons were among 1 1 
people arrested Sunday when the police seized 10 tons of 
hashish on a boat sailing close to this southern port. 

The 1 1 were brought before a court forquestioning while 
the inquiry continues, said a National Police spokesman, 
who in keeping with custom refused to be identified. 

The boat carrying the hashish was flying a British flag, 
the spokesman said. Three Britons and five Moroccans 
were arrested when coastal guards boarded the boat. Three 
other people whose -nationalities were not made known 
were arrested on land, the spokesman added- (AP) 

Irish Leader Calls for Elections 

DUBLIN - — Ireland will hoid legislative elections in 
early June, Prime Minister John Bruton said Sunday. 

"We are looking at an early June election at this 
Doint." he said in an interview on RTE radio. Mr. Bruton 
did not specify a date, but he was expected to ask 
President Maiy Robinson to dissolve Parliament on 
Thursday and fix the polling date for June 6. • 

Two opinion polls indicated last week that Mr. 
Bruton’s coalition will face an uphill struggle in its bid to 
hold onto power. . ' 

' q t c h that’s e : e 

7 n c c , : r : c. y. K 0 







Zaire Insurgents Resume Advance 

Rebel Official Rejects Role for Archbishop in Any Transition 

Gasfrin/frr Otr Suff Fran Dap&cbes 

LUBUMBASHL Zaire — Zaire 
rebels said Sunday they had resumed 
their advance toward the capital, despite 
a pledge to President Nelson Mandela of 
South Africa. 

; The announcement as both sides in the 
conflict prepared for new negotiations 
this week under South African auspices 
was seen as a device to increase pressure 
on President Mobutu Sese Seko. 

! Marshal Mobutu returned to Kinshasa 
under heavy security on Saturday night, 
prepared for a second round of direct 
t alks with Mr. Kabila to try to end the 
civil war. 

The marshal's decision to return con- 
founded many who had expected that his 
flight out of the country on Wednesday 
for a meeting with regional leaders 
would be his final departure. 

' Marshal Mobutu. 66, and ill with pro- 
state cancer, agreed to discuss a tran- 
sition of power in a meeting with Mr. 
Kabila on Wednesday in Pomte-Noire, 
Congo, said the South African deputy 
president, Thabo Mbeki. whose country 
has been acting as a mediator in Zaire's 


Mr. Kabila's forces have seized three- 
fourths of Zaire and claim to be within 
50 kilometers of Kinshasa. 

The rebel official responsible for for- 
eign affairs, Bizima Karaite, told a news 
conference in Lubumbashi that the 
rebels would abandon the South African 
initiative and attack if Archbishop 
Laurent Monsengwo accepted his elec- 
tion as speaker of the Zaire Parliament. 

! Archbishop Monsengwo, the prelate 
of Kisangani, was elected Saturday as 
part of preparations for Marshal Mobutu 
to hand over power to a transitional 

The post of speaker has been vacant 
since a combined move by Marshal 
Mobutu's followers and the radical op- 
position ousted Archbishop Monsengwo 
two years ago. 

Archbishop Monsengwo said in Brus- 
sels that he was ready to mediate in 
Zaire's civil war only if be can be “use- 

He said he planned to make “.ini- 
tiatives" to that end, but would not elab- 

Mr. Karaha said that over the past few 
days Zairian troops, backed by the An- 
golan rebel group UNTTA and former 
Rwandan troops, had attacked rebel po- 
sitions near the town of Kenge, 200 

kilometers east of Kinshasa, but had 
been driven back. 

“Mobutu is a devil and a trickster," 
be said, “and has used the talks to re- 
enforce his troops, bring in UNTTA ele- 
ments, former Rwandan troops and con- 
solidate his position in Kins hasa. ” 

“Our response to this is that we are 
abandoning our pledge and we are now 
advancing and will continue to ad- 
vance," he added. “We shall now talk 
and fight, and fight and talk. 1 * 

Mr. Karaha said rebel forces were 
close to Kinshasa but declined to give 
details. He said they had captured some 
UNTTA troops. 

“I will parade them here in Lub- 
umbashi in the next few days," he ad- 

The official said that Archbishop Mon- 
sengwo and unnamed foreign countries 
were trying to stop a revolution in Zaire. 

“If he accepts the job then we will 
abandon talks and Monsengwo will bear 
the consequences of whai will happen in 
Kinshasa." Mr. Karaha said. 

“Monsengwo has got responsibilities 
and he must not repeat what he did a few 
years ago." he added. “He is the one 
who stopped the revolution." 

Mr. Karaha, who said he was speaking 
on behalf of Mr. Kabila, said the transfer 
of power in Zaire "shall only be from 
Mobutu Sese Seko to Mr. Kabila." 

""Nothing else will be acceptable to 
us," he said, adding: ""We are not going 
to negotiate with anybody else other than 
Mobutu. We shall not even deal with 

Allmn Eucez/Agncc Francc-Prcmc 

FAITHFUL CROWD — Believers touching the drape of the Virgin of the Helpless, due to be blessed, as 
the statue was transferred Sunday through Valencia, Spain, from Church of the Helpless to the cathedral. 

GERMANY: Washington and Bonn Go Their Separate Ways With End of the Cold War 

Continued from Page I 

Affairs. “Germany will remain in the 
alliance, but European integration — 
further development of the EU and close 
cooperation with France — is increas- 
ingly important 

"The United States must understand 
that in the next century Germany will not 
automatically take its side in disputes 
between Washington and Paris. Ger- 
many’s vital interest dictates that it not 
become isolated or insulated from its 
European neighbors, and France is the 
most important" Mr. Schmidt writes. 

U.S. and German officials say the 
partnership can continue to prove its 
Strength when necessary. In die face of 
Russian opposition, Bonn and Wash- 
ington have worked closely on NATO's 
planned expansion, which is expecrad to 

include the Czech Republic, Hungary 
and Poland, Hungary. Bonn and Wash- 
ington share a common interest in en- 
suring that the alliance does not stop at 
Germany's eastern border. :. 

Moreover, the rapport between the 
leaders of the two countries. Chancellor 
Helmut Kohl and President Bill Clinton, 
— is cited as one of many personal 
friendships that have eased dealings be- 
tween the two governments. 

But in recent years, the character of 
Mr. Kohl’s inner circle has changed no- 
ticeably, reflecting a new set of pri- 
orities. In place of Horst Teltschik, his 
chief foreign policy analyst for many 
years who cultivated close ties with 
Washington, Mr. Kohl. has appointed a 
Francophile, Joachim Bitterhch, to the 
post when asked for his views on U.S.- 
German relations, Mr. Bitterlich relayed 

a message saying he did not think the 
topic was worthy of his time. 

Mr. Teltschik, the former foreign 
policy analyst, said: “I still think the 
chancellor feels a specialwarmth toward 
the United States, but he is too pre- 
occupied now with domestic and Euro- 
pean issues." 

He added. ‘ ‘Trade, jobs and European 
integration are the subjects uppermost in 
his mind these days." 

But Mr. Teltschik said he was worried 
about potential confrontations that could 
weaken the alliance in the- coming years. 
In addition to trade battles, the advent of 
the euro could challenge the dollar’s role 
as the world's only reserve currency. 

“The evolution depends largely on 
the behavior of the United States,” Mr. 
Teltschik said. “There is growing anxi- 
ety in Europe about how the United 

States will use its position as the only 
world superpower.” 

But U.S. officials say the future re- 
lationship will depend on the way in 
which Germany takes up its respon- 
sibilities as the undisputed power in 
Europe. They say the goal of a stable, 
peaceful new order on die continent can 
be achieved only when Germany pulls 
its weight. 

“We would like to see the Germans 
assert themselves more in Europe, but 
they still remain fearful about wielding 
any kind of power." said James Bind- 
enagel, deputy chief of mission who, in 
the absence of an ambassador, has run 
the U.S. Embassy for the last year. "The 
last Russian troops left in 1994. and one 
gets the feeling that Germans are still 
trying to come to grips with their own 

Gingrich Eases 
Stance on Trade 
Reviews for China 

International Herald Tribtuie 

grich, the House speaker, retreated 
slightly Sunday from his proposal to 
renew Chinese trade privileges for 
no more than six months as a way of 
I; pressuring Beijing to respect the 
rights of Hong Kong people afterthe 
territory reverts to China on July l. 

Without renouncing his idea on 
extending China's most-favored- 
nation trading status for less than the 
usual year, Mr. Gingrich noted in an 
interview ou NBC television that 
“all the major leaders of Hong 
Kong" favored a year’s extension. 

The governor of Hong Kong, 
Chris Patten, sent letters to Mr. Gin- 
grich and other Republican legis- 
lators last week to welcome their 
support for Hong Kong. But he ob- 
jected strongly to any curtailment of 
China's trading privileges, which 
could hurt Hong Kong’s economy. 

Asked whether he expected the 
trading status vote to pass this year, 
as it has each year since the re- 
quirement began in 1980. Mr. Gin- 
grich replied, “I don’t know if it’ll 
pass or noL" He said he expected a 
‘"weaker vote" than a year ago. 

He defended the utility of trade 
pressures, however. “The Chinese 
government pays attention.” be 
said. “It does make them more sen- 
sitive. it does make them more 
nervous" about international scru- 
tiny of their human rights practices. 

President Bill Clinton, who sup- 
ports an extension of most-favored- 
nation trading status, is required to 
notify Congress by June 3 -whether 
he plans to continue doing so. 

Mr. Gingrich said he was dis- 
appointed with a White House 
threat to veto any plan to review die 
trading status more than once a year. 
But he said that China had become 
"less dictatorial" than it was 10 to 
->n years ago, that a “much broader 
Approach to China” was advisable, 
ffttai U.S.-Chinese mute was 
generally good for both sides. 

ITALY: Stung by Tepid Reception of Efforts to Join Euro Club 

Continued from Page 1 

the measures Italy has taken to reform its 
old borrow-and-spend economy can be 
sustained. They suggest that the progress 
in the reduction of the Italian deficit 
from 6 percent may be like that of a 
prizefighter leaving the steam room be- 
fore a weigh-in. If smaller southern 
European economies like those of Spain 
and Portugal that meet the EU criteria 
are seen as potential first wave par- 
ticipants. the overriding German con- 
cern is that any eventual slackening in 
Italian financial management would run 
down the euro's worth. 

In terms of German domestic politics. 
having the Italians as pan of the euro in 
1999 would only complicate Chancellor 
Helmut Kohl's difficult bid for re-elec- 
tion in late 1998. He musi sell the 
Deutsche mark-to-euro transition to a 
reluctant electorate that already sees it as 
gold to dross. Mr. Kohl's most dan- 
gerous Social Democrat potential op- 
ponent, Gerhard Schroeder, a populist 
with a sharp nose for public sentiment, 
has already lined up against the Italians, 
saying that Italy's immediate participa- 
tion in the euro would destabilize it. 

To a German diplomat asked to ex- 
plain his country's altitude, any sug- 
gestion of racism is silly. 

“But it is a fact for a German when 
you go to Italy and pay 3 million lire or 
whatever for a glass of beer, that doesn't 
seem serious," the diplomat said. 

Holger Schmieding, an economist at 
the Frankfurt office of Merrill Lynch, 
said: “It is not racism by the German 
public. It is a prejudice rooted in a lot of 

Whatever the definition, in an ed- 
itorial earlier this year in Germany's 
most influential newspaper, the Frank- 
furter Allgemeine Zeitung. told readers 
that the monetary union target of a def- 
icit-to-GDP ratio of 3 percent was seen 
“by many Italians as an unwelcome 
restraint to political fantasy in the area of 
public spending.’’ 

“Especially unpleasant and trying is 
the fact that there should be stiff rules 
attached to monetary union whose ob^ 
servance may be followed in the open.” 
the newspaper said. “Many Italians do 
not simply understand why as far as 
European Monetary Union goes great 
importance is attached in some countries 
to finance markets^ protection of cur- 
rencies and savings." 

Tilings were just too different in Italy, 
the editorial went on: "Daily human 
contact is too often characterized not by 
civic sense or a spirit of community, but 
by selfishness in the struggle of every- 
body against everybody else. 

“While understanding Italy's per- 
spective. the partner countries must 
demonstrate firm observance of the 
rules, allowing no room for loopholes. 
Otherwise it cannot be excluded that 
once Italy is admitted into monetary 
union and taking advantage of its priv- 
ileges. some future Italian government 
won’t try to bargain to see how much the 
rules can be bent." 

An economist like Mario Nouera, of 
the Deutsche Bank’s Milan office, 
listens to this, as he has to references to 
olive pickers and the “Club Med" — 
the southern European countries seen by 
their northern neighbors as having in- 
sufficient fiscal discipline — with vast 
patience. He makes the point that im- 
mense structural change has occurred in 
Italy and that the deficit has drastically 
improved since 1 99 1 -92. 

The country still needs extensive re- 
form of its pension and Fiscal systems, 
and much greater flexibility in re -chan- 
neling its resources. Mr. Nouera says, 
but afl these things would be accelerated 
by participation from the outset in the 

“The delicate part,” he said, “is that 
our poor truck record has created many 
layers of skepticism. Credibility builds 
over decades. Our institutional frame- 
work is unstable. We’re in a difficult 
transition that is not resolved. This poor 
track record justifies the attitude of the 
German electorate and the constraints 
that places' on the German politicians. 

The politicians have to do something to 
assure the electorate. Leave out some- 
body. that’s a way. If they have to leave 
somebody out. chances are it’s Italy." 

The current evidence on whether Italy 
will become pun of the euro in 1999 
appears divided, in its favor are clear 
signs from France that it wants Italy to be 
part of the initial common currency 
group, so that, to the extent possible, it 
will not turn into the euromark. The 
Socialist Party, gaining ground us the 
French parliamentary elections ap- 
proach. has indicated it wants Italy as a 
charter member, and an associate of 
President Jacques Chirac has said 
privately that if the Italians are close to 
the target figures in April 190tf. then 
there would be “no problem." 

A difficulty the Italians may he facing 
as a result of slower than expected 
growth is diminished tax revenue, al- 
though this may he offset somewhat by 
remarkably low inflation figures. 

But the biggest issue remains the Ger- 
man altitude. In a strategy paper issued 
this month. Merrill Lynch reported that 
the German government and the 
Bundesbank continue to seek to exclude 
Italy from the 1999 group, with Italian 
participation in the euro described as 
being so unpopular in Germany that if 
announced in April 199S. it could cosi 
Mr. Kohl the election six months later. 

The investment bank said it believed 
nonetheless that the most likely outcome 
would involve Germany's reporting a 
deficit in the range of 3.1 percent in 3.3 
percent of GDP, allowing Italy, with a 
similar performance, to become pan of 
the monetary union. Other scenarios 
would grant Italy entry a year after the 
start of the currency, or postpone a final 


Tough Final Bargaining 
On a NATO-Moscow Deal 

By Steven Erlanger 

<V<i r Yen' k Timci Sen'ire 

A eerier Franc? Picric 

Archbishop Laurent Monsengwo, 
speaking in Brussels on Sunday. 

Monsengwo, who is just another con- 
fusionist in Zaire's politics." 

It was uncertain whether Mr. Mobutu 
was willing to make any concessions in 
the peace talks. (Reuters. AP. NYT) 

QUAKE: Stunned Iran Region Digs Out 

Continued from Page 1 

and report on how much aid was needed 
to cope with the aftermath of the earth- 
quake. A UN spokesman in Tehran said 
the official was expected to report on 
Monday lo headquarters in New York. 
His assessment could trigger a flow of 
aid in response to Iran's appeal for in- 
ternational aid. 

The quake, which registered 7. 1 on the 
Richter scale, was Iran’s most severe one 
since 1990. when about 35,000 died. 

A makeshift clinic, including an op- 
erating theater set up in a sports hall in 
Qaen.*was filled with survivors, some on 
drip feeds. Equipment for three field 
hospitals was sent to the area. where 
about 1 0.000 houses were estimated to 
have been destroyed. 

The interior Ministry said Iran was 
“ready to receive assistance from those 
countries that waald like to ussist the 
earthquake victims.” Tehran radio said 
2.000 workers were taking part in the 
relief work. ( Renters. AP. A FP I 

WASHINGTON — Even though 
President Boris Yeltsin says a deal gov- 
erning relations between Russia and an 
expanding NATO is “98 percent com- 
plete." senior American officials and 
NATO-country’ diplomats are warning 
that difficult military issues between 
Moscow and the alliance have yet to be 
sealed and could delay a signing this 

The White House scheduling office is 
already having fits, officials say. about 
whether or not President Bill Clinton 
will need to be in Paris to sign a final 
document on May 27. But other officials 
caution that the North Atlantic Treaty 
Organization should not be rushed, and 
that Mr. Yeltsin's desire for the Paris 
meeting gives the alliance a negotiating 

At the moment, the two sides even 
disagree on what to call the document, 
officials say. The Russians are looking 
for a more fundamental word than 
"charter.’' suggesting "'act." And they 
want a Russian co-chairman of the new 
Joint NATO-Russia Council, while 
NATO wants to preserve its secretary- 
general. Javier Solana Madariaga, as the 
sole chairman, though he might have a 
Russian deputy. 

But the officials and diplomats say 
they are confident that such issues will 
disappear if the military issues can be 
resolved; otherwise, the political sec- 
tions of the document are complete. 

The main outstanding issues revolve 
around Russia’s effort to limit the pres- 
ence of NATO forces on the soil of new 
members, while Washington and NATO 
capitals are determined not to create any 
“second-class citizens’’ in NATO. The 
new members are widely expected to be 
Poland. Hungary and the Czech Repub- 
lic, with Romania and Slovenia still in 
the running but fading, the officials say. 
The winners of the NATO expansion 
competition will be announced in early 
July, but new members must be ratified 
by each NATO country, which will take 
nearly two years. 

On Tuesday and Wednesday, the Rus- 
sian foreign minister. Yevgeni Pri- 
makov. will meet Mr. Solana in Mos- 
cow. and Mr. Yeltsin says he may 

But the U.S. secretary of State, 
Madeleine Albright, may also need to 
meet Mr. Primakov again, after flying to 
Moscow last week to see him. 

NATO officials say expansion will go 
ahead no matter what, but hope to make 
the May 27 target. They say that Mr, 
Primakov appears to be under pressure 
from Mr. Yeltsin to get the document 
done, but wants to be able to assure Mr. 
Yeltsin that Russia's security will be no 
worse off than when he rook office in 
199 1 . the officials say. 

The Russians have made a great step 
in principle toward NATO, the officials 
say. by agreeing that the alliance can 
permanently deploy allied forces on the 
territory of new members. Originally, 
Russia wanted to prohibit the permanent 
stationing of any allied forces in new 
member states. 

But Russia wants to set a binding limit 
on such forces at about 5 percent of 
limits under treaties governing conven- 
tional forces in Europe, so that if Hun- 
gary. for example, has a limit of 100 
tanks on its territory, only 5 of the 100 
could come from other members of the 

Rightist Is Headed 
For Milan Victory 

CimfiAi/M tlur Si, iff t-'nwn 

ROME — The rightist industri- 
alist Gabriele Alberti ni was elected 
mayor of Milan. Italy’s economic 
capital, on Sunday in the key race in 
partial municipal elections, accord- 
ing to exit polls given by Italian 

The secessionist Northern 
League's incumbent mayor was 
voted out in the first round of mu- 
nicipal elections the previous 

More than 5 million Italians were 
voting in the elections taking place 
in 77 districts. 

The key contests are in die north- 
ern industrial cities of Milan. Turin. 
and Trieste where candidates of the 
governing Olive Tree coalition and 
the opposition Freedom Alliance 
arc squaring off. 

The local elections arc being 
closely watched as u gauge of the 
strength of the governing center-left 
coalition as it prepares for the battle 
over reforming Italy’s costly wel- 
fare* state. According to most ana- 
lysts. Olive’s candidates need swing 
voters from the hard-line Relbun- 
ded Communist Party to win. 

f AFP. AD 

decision on its participation .six months 
front April I99X until November 1998. 
after the German elections, and presum- 
ably. arguments about Italian unreliab- 
ility- and headlines about monetary ra- 

“When the likelihood of gelling into 
the EMI) was very low. the central 
blinkers didn't worry very much about 
any of this." said Domenico Sinc.scufcii. 
a professor of economics at the Uni- 
versity of Turin. “The phobia is recent. 
Why are we w orked up about this'.’ Italy 
interpreted Maastricht as essentially an 
occasion for reform. The EMU is 'sec- 
ondary ui the same sense that the pur- 
pose of a unified Europe is to dilute the 
German role in Europe. We're desperate 
about making the first wave, keeping on 
truck, because otherwise we head 
straight back into the 1970s. But fact is. 

rac,a ^ reasons, I won't deny 
the EM L becomes much more riskv if 
we re in.” 

alliance. NATO wants that number ro be 
20 . 

Western officials say the 5 percent 
limit is simply too low. because it would 
mean no more than a brigade or so in 
Poland, which would make no coherent 
military planning possible, and only 
about five tanks for Slovenia. 

The two sidesalso disagree about Mos- 
cow’s efforts to restrict the amount of 
military infrastructure — new airfields, 
buses, radars and the like — that would be 
used to accommodate reinforcements that 
might be sent to new members in time of 
crisis. NATO is prepared to station only 
small numbers of troops on the territory 
of new members, but needs the capacity 
to reinforce, if necessary. 

Nukes: Russia 
Reserves Right 
To Strike First 

By David Hoffman 

Washington Past Sen-ire 

MOSCOW — President Boris Yeltsin 
has approved a new security doctrine for 
Russia that stipulates the right to use 
nuclear weapons first if attacked, accord- 
ing to a senior Kremlin security adviser. 

“We are not speaking of making a first 
strike in order to secure advantage," Bor- 
is Berezovsky, deputy head of the Se- 
curity Council, told Echo Moskvy radio, 
“But if we are driven into a corner and are 
left with no other option, we will resort to 
nuclear weapons." His comments are 
similar to those made in February by Ivan 
Rybkin, the Security Council chief, who 
said the Kremlin in effect was reversing a 
pledge by the former Soviet president. 
Mikhail Gorbachev, that the Soviet Un- 
ion would not be the first to use nuclear 
weapons in a conflict 

The Russian comments took U.S. of- 
ficials by surprise. In Washington, the 
Stale Department spokesman. Nicholas 
Bums. said. “Rather than talking about 
no first use. we think that public com- 
ment should be directed toward lower- 
ing the risk of nuclear war and lowering 
levels of nuclear weapons.” 

Despite urging by former Soviet lead- 
ers. including Mr. Gorbachev, the 
United States has always refused to 
adopt a formal no-ftrst-use policy for 
nuclear weapons. If Mr. Berezovsky's 
remarks at the end of the week reflect 
Kremlin thinking, they effectively 
would bring Russian policy on nuclear 
weapons in line with U.S. policy. 

The recent statements about a nuclear 
first strike are being viewed here as part of 
Russia’s effort to pressure NATO in the 
ongoing negotiations over a new charter 
between Russia and the alliance. Mr. 
Yeltsin said this week that work on the 
charter was 98 percent complete, but fur- 
ther negotiations are expected in Moscow 
next week with the goal of a signing 
ceremony in Paris at the end of the 

Russia has expressed anxiety over 
whether an expanded NATO would bring 
alliance military hardware closer to the 
Russian frontier. The allies are hoping to 
assuage these concerns before deciding at 
its July summit ro invite new members. 


U.S. Warns Tehran 
On Strategic Strait 

MANAMA. Bahrain — The 
United States would take immediate 
action to defend the Strait of Hor- 
muz against any Iranian threat to 
close the strategic waterway, a U.S. 
military commander said. 

“We will lake immediate action 
in terms of the defense of the 
strait," the commander in chief of 
the U.S. Central Command. General 
B intend Peay. said in Bahrain, 
headquarters of the U.S. 5th Fleet. 

His remarks were released by the 
U.S. Embassy on Sunday, as Iranian 
air and naval forces began six days 
of exercises in the Gulf. (Reiners) 

ArafaCs Guards 
Accused in Death 

JERUSALEM — - Israel accused 
Yasser Arafat's personal guard on 
Sunday of killing an East Jerusalem 
Arab suspected of selling Arab land 
to Jews. 

A land dealer. Farid Bashiti. 70. 
was killed Thursday in the Pales- 
tinian-controlled city of Ramallah. 
His body was found with his skull 
crushed, hands tied behind his back 
and mouth sealed with plastic tape. 

“There is no doubt at all that 
Force 1 • killed him. " a senior Is- 
raeli said, speaking on con- 
dition of anonymity. The'Paleslin- 
ian Authority denied involvement 
in Mr. Bashiti's death. (A Pi 

Thanks From Japan 

LIMA — Prime Minister Rvu- 
taro Hashimnto of Japan headed 
home after a one-day trip to Peru to 
thunk President Alberto Fujimori 
for an “admirable" hostage rescue 
that ended a rebel siege at his am- 
bassador’s home. 

Mr. Hashimoto decorated troops 
who took part in the April 22 rescue 
raid and left flowers on the graves of 
the three Peruvian officials who 
died in the assault. He also meet 
with injured hostages. (Reuters) 


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v°^ ^? fe ™ t,onaf candidates for the position of 
Cluer Technical Advisor, Ankaraftinisika project. Ankurafamsika 
is a _ community-based protected urea conservation project in 
Nladagascar s nonhwe^tem dr\ forest. The reserve, located an a 
plateau above the coumr> '« second largest rice production zone, 
represents one of the most important factors aeauist erosion and 
siltanon of the rice fields, u is also one of the kev protected areas 
for the conserv-diion of biodn ersny in the western region 
R esponsib il i ties for the Chief Technical Advisor include: 

■ w ork in partnership with the Nanoffiil Director on all aspects of 
project management including finance, personnel, and project 

■ Oversight oi development, conservation, and erosion control 

■ Supervision with the National Director of project compo/icnt 

■ Participation in recruitment of national and international 

■ Supervision of preparation of work plans, annual project 
reports, and projeci monnorinp and finance reports. 

Qualified candidates should have: 

• 5-10 years experience in comniunitv -based natural resources 
project manaeemem preferably in Africa or Asia 
English and French ar the FS4 level 
An advanced university degree in a related field 
The ability to work, contribute, and Mipervise in a team 

Position offers competitive salarv commensurate with experience. 
Closing Date: May 31. 1997 

To be considered, tnatf. e-maif ur /lit detailed resume, references 
and salary history to: 

Conservation International 
Attention: Ms. Funja Andnamiulisoa 
2501' M Street. NW Suite 20U 
Washington DC. 20037 
E-mail: f.andriamialisoaiji 1 
Fax: t202i RS7-0192 


A well established US based firm has an immediate opening 
for a top level Financial Officer for its Spanish business unit 
Ideal candidate will be experienced in all aspects of financial 
control including reporting, compliance, and financial analysis. 
Experience with a US. company a plus. A strong operational 
background is essential as die successful candidate must be 
capable of assuming the General Manager position of this $25 
million light hard goods manufacturing company. 

Candidates must have the appropriate educational -back- 
ground along with the ability to demonstrate extensive, and 
successful financial management emerience with a U5. or 
Spanish manufacturing company. Fluency in Spanish and 
English a must. 

We offer an extensive wage and benefit package along with 
the opportunity for professional growth and development. 

ff quatiffed, send resume with salary history and requirements ta 
Bax D-439 - International Herald Tribune 
850 Third A\xl. I Oth FI New York, NY 10022 USA 

Executives Available 

nal experience in industry and corn- 
mens, rtem a flora I fanes and mstot- 
Ing. Fleam m Engdsft. Romanian and 
Hebrew. Seeks noble posatoa Tel 972 
9 76T386& 

General Positions Available 


Bondi-East Asian based real bretarage 
requires (brad income broker to canica- 
Hgn net wmh tndWual *r» base. Mn- 
mum 2 years expereree m feed name 
products roqtnred, idsafly to an estab- 
kshed private cfienl base The successhi 
cantititB must be an entrepreneurial, 
aggressive aakwnoo capabte of mertaF 
ng a vanoy ol asset classes aid xfflng 
to mk In a high pressire setng enw 
ronmant. Extapbonal axnpensattai pack- 
age negotiate bused on experience. 

Fax resume to 

Ha. S. Rojas on (632) 813^839 


frtemationfli Trade Publication seeks 
experienced Sates Executive- Poston 
replies strong organcalbnal Mw-qi. 
presentation skis. Must be able to wrt 
nfependenuy. Accounts based fn Asia, 
Europe. USA; must be able to traveL 
Resume, compensation requranenls to. 
1123 Broadway 
Suite 1815 

New Tort, NT fflWfl USA 

Ge neral Positions Wanted 

A hard working temala MBA. 32. Lon- 
don based. LT„ am marketing experi- 
ence In fancal SBntes. Seeks a sui- 
able poeiftxn# travet 44(0)956 142050 

Commitment h ig h P r 0 fe 5 S i 0 „. 

a 1 standards, and a strong client-service orientation are the 
reasons for KPMG's success. We and our parmer firms in 
147 countries constitute one of the world's leading global 
auditing and consulting organisations. Our clients include 
all types of business associations ranging from large multi- 
nationals to small and medium sized enterprises across 
the industry spectrum. As of Julv 1, 1997. we are seeking 

"™ U.S. Tax Manager 

for our office in Frankfun. Germany. The position involves 
the review of L'.S. tax returns and consulting primarily for 
U.S. citizens and non-resident aliens investing in rhe L-.S.. 
but also for partnerships and corporations. Applicants should 
be computer literate, have an accounting background, 
preferably with a degree in accounting or a comparable busi- 
ness degree, and have experience in the field of international 
taxation. German language skills are preferred, but not 
required. Please apply to Mrs. Dagmar Gessner Gaspar 
at the address and telephone number shown below. 

We are looking forward to introducing ourselves to you. 


KPMG Germany 
Marie-Curie-Strasse 30 
D-60439 Frankfurt am Main 
Telephone 0049 (69)9587-22 50 



Division of the 
group Carrier 
Carrier Transicold. 
with sales 
exceeding 200 
millron $, is 
specialised in 

In order to assure 
ourgrouth in 
Europe. Africa 
and the Middle 
East we are 
seehing : 

Based in Cergy Pontoise. and reporting to the Marketing 
Manager, your assignment win encompass the following 
responsibilities : 

• you will be in charge of developing press relations throughout 
our sales area so as to assure the quality and quantity of our 
press coverage, you will also be responsible for the writing of 
press releases, 

• you will be the leader of our multilingual Company Marketing 
Newsletter (writing, production and distribution), 

• you will support our network in the creation and organization 
of Public Relation events and of trade shows, you will define 
and coordinate the European market seminars. 

• you will cary out direct marketing operations, 
m you will coordinate Product launches, 

• you will work closely with several of our advertising agencies 
to define advertising campaigns. 

Superior education in communication, you have acquired a 
minimum of 3 to 5 years in industrial products Business to 
Business Communication. You speak and write English and 
French. A fluency m German is a plus. You have good computer 
skills (Wbrd. Excel, PowerPoint). You are ambitious, dynamic 
and creative. Your good interpersonal skills will allow you to 
foster good relationship with your clients. 


You wish to join our company, transmit your resume to 
V6ronique Durand, Carrier Transicold, Imm. Grand Axe, 
10/12 Bd de I'Oise. 95000 Cergy Pontoise. France. 



Highly motivated, 33 year male 
consultant, MBA. PhD, experience 
In management frrineeneerlng) and 
oflshoracruK consultancy; private 
banking, client relationships in 
Eastern Europe. Asia. Latin 
America, language German. English, 
Spanish, French, basic Russian, 
looking k>r new challenging assign- 
ment to develop business further. 
Phase contact: 


Careerp ret 







SWISS GENTLEHAN, 45, free to travel, 
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Helping Hong Kong 

The coming transfer of Hong Kong 
from Britain to China is a case study in 
the limits of American power. Cus- 
tomary levers of diplomacy and miJ- 
' itary pressure are ill suited to defending 
Hong Hong's freedoms, and the most 
severe economic penalty — revoking 
all Chinese trade privileges — seems 
mismatched to the problems ahead. A 
mix of strong presidential pressure, 
quiet diplomacy and carefully targeted 
trade sanctions imposed jointly with 
other countries offers the best hope of 
influencing Chinese conduct 

Hong Kong is an intricate and in- 
herited problem. Britain has long en- 
couraged free markets, an unfettered 
press and rule of law in Hong Kong, 
but only in recent years has it permittee! 
steps toward democratic governance, 
including a freely elected legislature. 
This, to some extent, was a cynical 
move by Britain to cover its exit with 
glory after ISO years of often rigid 
colonial rule. 

Unfortunately, the political climate 
in China today is more repressive than 
in 1984. when terms were set for the 
return of Hong Kong this July l, and 
London’s agreements with Beijing of- 
fer little real protection for Hong 
Kong's 6.5 million citizens. To prevent 
a relatively free society from being 
crashed. Washington has to take die 
lead in defending democracy. 

The Hong Kong transfer is part of 
the larger issue of China's emergence 
as a great power, perhaps the most 
difficult international challenge of the 
day. China is neither America's ally 
nor its enemy, and a Cold War policy 
of confrontation and containment does 
not fit. But with 1 .2 billion people, one 
of the world's fastest growing eco- 
nomies and ambitions to be a military 
power, Chin a will one day be Amer- 
ica's rival. As long as if remains a 
Communist state with no political 
liberty, it will never enjoy an easy 
relationship with the United States. 

Hong Kong is soon to be die prime 
resting ground of Chinese tolerance 
and intentions. But the political and 
economic complexities of Hong Kong 
make it a hard place to get unam- 
biguous results. Many of Hong Kong's 

successful businessmen seem quite 
content to see democracy attenuated as 
long as China does not threaten their 
freewheeling financial markets. Local 
media, especially the Chinese-lan- 
guage press, have already muted crit- 
icism of China without being asked. 
Transition to a Singapore-style. auto- 
cracy may come slowly and subtly. 

The United States and other demo- 
cratic nations must be unequivocal in 
telling China that the destruction of 
Hong Kong liberties and the rule of law 
will gravely damage China's standing 
in the world. President Bill Clinton has 
been strangely hesitant to speak plainly 
on this point. 

Washington should let Beijing know 
that Chinese tyranny in Hong Kong 
will result in the suspension of de- 
veloping exchanges between the 
Pentagon and the Chinese military. 
Secretary of State Madeleine Albright 
can quietly suggest that a planned ex- 
change of presidential visits will be 
jeopardized if Hong Kong is trampled. 

The elimination of trade privileges 
for China, due for a congressional vote 
in June, is an extreme approach. It 
would severely damage Hong Kong 
and punish low-income Americans 
who buy inexpensive consumer goods 
made in China. Some American 
companies like Boeing that do business 
in China would also be hurt. But as 
useful leverage the threat of such 
across-the-board tariff increases should 
not be discarded, and Newt Gingrich’s 
proposal to revisit the issue every six 
months may not be a bad idea. 

More selective trade sanctions 
would be appropriate, especially if oth- 
er industrialized nations cooperate. 
China can find alternative markets for 
many goods if American tariffs are 
increased, but a common effort with 
Europe and Japan would have serious 
consequences for Chinese trade. 

American silence or neglect on 
Hong Kong would be unconscionable. 
But as the countdown to China's 
takeover proceeds, Washington will 
have to be not only determined but 
creative in its defense of Hong Kong's 


Immigration Puzzle 

President Bill Clinton got hit hard 
with the migration issue in Central 
America. For the poor countries there 
and in the Caribbean, as for Mexico, 
emigration "to the other side” has 
been a vital social safety valve and an 
opportunity for personal fulfillment. 
TTxese pressures have made the an- 
ticipation and control and in some in- 
stances the reversal of Latin emig- 
ration a prime U.S. foreign policy goal. 
To do all of this with minimal negative 
effect on other aspects of American 
relations with the region is one of di- 
plomacy’s never-ending tasks. 

In Costa Rica, Central America's 
leaders appealed to Mr. Ginton to Leg- 
alize, or bestow amnesty on. the hun- 
dreds of thousands of their citizens who 
fled the region in the local wars of the 
'80s and were granted temporary sanc- 
tuary in the United States. The wars are 
now over and their enforced return 
would doubtless mean hardship for 
their countries, communities and fam- 
ilies. But these people are excluded by 
American law, and no early change is in 
the cards. That left Mr. Clinton to prom- 
ise humane case-by-case administration 
of the law. which many Latins approve 
of even though they know that it is not 
foe same as being allowed to stay. 

The new American immigration law 
that came into effect on April l re- 
flected a widely remarked souring of 
American attitudes toward illegal for- 

eign entry. In Central America. Mr. 
Ginton said he would ask Congress to 
alter the law to let him exempt a greater 
number of illegals from deportation, 
depending on the circumstances of a 
particular case. He also said he wanted 
to soften a provision requiring illegals 
awaiting legalization to wait in their 
home countries. 

These things are worth doing to 
soften the hard edges of the law. But the 
law must be respected. America must 
stop illegal immigration. Mr. Clinton 
fairly said, if only to maintain popular 
support for legal immigration. 

No other country faces the scut of 
immigration pressures that confront the 
United States. The forced geographical 
encounter of a developed country and a 
less developed region — across, over 
and around the essentially unscalable 
2,000-raile (3,200-kilometer) land bor- 
der between the United States and 
Mexico — has no real parallel any- 
where in the world. That does not mean 
that Americans must surrender control 
of their borders. But it does impose a 
set of policy mandates. One is to fa- 
cilitate development and trade in order 
to keep would-be immigrants at home. 
Another is to be as open to legal im- 
migrants as American society permits. 
A third is to administer immigration 
with foil respect for national and in- 
dividual Latin sensibilities. 


Other Comment 

Lots of Work for Cybercops 

[Detective Keith) Lowry treats com- 
puters as carefully as corpses at a 
murder scene. That is because criminals 
often booby-trap their PCs so that a 
simple action, such as double-clicking 
the mouse, could send a command to 
delete data at the rate of 30 megabytes 
per second. Another ploy is to rig the 
door frame with metal strips that could 
(theoretically, at least) demagnetize the 
hard drive with a simple flick of the 
light switch. The idea is that if anyone 
tries to carry out the computer, the 
magnetic field thus created scrambles 
the contents of the hard drive. 

In the parlance of police work, the 

fortyish Lowry is a "cybercop.” One 
of only a few hundred in America, he is 
fighting a worldwide technology crime 
wave that has been nowhere more in- 
tense than in Silicon Valley, the area 
around San Jose, where there are more 
than 5.000 computer-related compa- 
nies. The area loses an estimated SI 
million worth of components a week to 
theft. The total cost of technology- 
related crime, which can include 
everything from stolen laptops to data 
illegally obtained over the Internet, is 
high. Software, piracy and component 
theft are estimated to cost more than 
S24 billion per year worldwide. 

— Mark Smart Gill, writing in the 
May issue of Smithsonian magazine. 

4 i IYrERMTUVV\LM * f 


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Don’t Rule Out a Compromise on Jerusalem 

W ashington — a ray of good 
sense beams from Israel at what 
otherwise is a dark moment in the quest 
for peace. It 1 ies in the changing context 
of the Jerusalem issue. 

Not that there is no bad news about 
Jerusalem; there almost always is. The 
most recent came in Washington Post 
correspondent Bart Ge liman’s report 
that the Israeli authorities — first Labor 
and now, more intensively, Likud — 
are quietly finding bureaucratic ways 
To deny long-resident Arabs their right 
to live in Israeli-annexed East Jeru- 
salem. The process, the flip side of an 
Israeli policy of expanding Jewish set- 
tlement in tbe West Bank, has blighted 
thousands of Palestinians' lives. 

Israelis justify the revoking of East 
Jerusalemites’ residence permits as a 
response in kind to a calculated Pal- 
estinian effort to build up the Arab 
population for political reasons. 

Here the irony is rich. The Israelis 
fault the use of demography to serve 
Palestinian political purpose, but they 
are themselves masters of the art When 
they practice it, it is called "creating 
facts” and defended as a moral right. 

Of all the “facts” that Israel has 
created, none is at once more prized but 
also more provocative than the dom- 
inant position Israel has carved out 

By Stephen S. Rosenfeld Religion. Jerusalem remains the tics and appeal^ paMonsm--^® 

d r Tnfiaicm BiitKuWiviHinff for a nastv surprise. After all, • 

since the 1967 war allowed it to rake 
Arab East Jerusalem, annex it to Jewish 
West Jerusalem, greatly expand its 
boundaries and settle it thickly, too. 

The Israeli government now treats 
the city as its exclusive, eternal, in- 
divisible and nonnegotiable capital, 
and denies Palestinian territorial and 
national claims to any part of it 

Except that not all Israelis so regard 
iL Jerusalem is an issue in comention 

andperhaps in transition. 
The vie 1 

views of the doubters and their 
arguments are usefully mustered by 
Ze'ev Chafets — a former Begin aide 
who, like many Israelis, has come a 
long way in ins thinking — in the 
weekly Jerusalem Report of May 1 . 

While the issue was theoretical, Mr. 
Chafets says. Labor could easily sup- 
port Likud's unyielding position. But 
with the city's future now on the table. 
Labor’s leaders and rank and file are 
thinking the unthinkable: that Israel 
must eventually give up part of Je- 
rusalem for peace, and that compro- 
mise would not spell disaster. 

He examines tbe four arguments that 
since ibe 1967 war have made up “the 
Jerusalem consensus,” now fraying. 

holiest city of Judaism. But by dividing 
another scarcely less precious city. 
Hebron, Prime Minister Benjamin Net- 
anyahu set a precedent of splitting sov- 
ereignty from prayer. 

History. As for Israel's claim to the 
whole land of historic Israel, Mr. Net- 
anyahu set a similar precedent in yidd- 

dris^ako^from a deed to a poem. 

Strategy. Now that even Likud 
speaks openly of a Palestinian “en- 
tity" in the West Bank, the notion that 
a Jewish Jerusalem will prevent a Pal- 
estinian state is laughable. 

Patriotism. As the city becomes in- 
creasingly ultra-Orthodox and anti- 
Zionist, to many it has also become 
strange, inhospitable, shorn of its sym- 
bolic magic. 

Concludes Mr. Chafets: “As Bibi 
Netanyahu gets ready to take on the 
world over the fate of Jerusalem, he 
often speaks of the wall-to-wall support 
he enjoys. If be compromises, oners 
the Palestinians a capital of their own 
on land that can reasonably be called A1 
Quds while insisting on our right to the 
parts of the city where Israelis live, 
Netanyahu will have that support. 

“If not — if he tries to rally the 
public with religious slogans, scare tac- 

for a nasty surprise, 
rusalem most Israelis care about. West 
Jerusalem, is already ours.” 

Anyone who has been around the 
heavily laden, multiple-layered Jeru- 
salem issue will know that there will be 
many sincere objections to Mr. 
Chafets’s pragmatic approach, which 
ywns to me sensible, fair-minded and 

respectful of the complexities. 
But I w< 

would like to see a fraction of 

die political, intellectual and spiritual 
energy that routinely goes into the 
enunciating of clashing positions be 
put into a search for common ground. 

Meanwhile, it would be good to see a 
broadening of the American debate to 
Talco into account the vigorous and di- 
verse range of possibilities being ex- 
amined by Israelis and Palestinians. 

Last year, for instance, mainstream 
Israeli Labor and Palestinian officials 
agreed informally oa a plan by which. 
The Wall Street Journal reported. Israel 
would annex 7 percent of the West 
Bank in exchange for recognizing Pal- 
estinian statehood and a Palestinian 
capital to be called A1 Quds, located 
inside an expanded Jerusalem. Why 
declare foiled and finished an issue on 
which joint inquiry has barely begun? 

The Washington Post. 

But Listen to This Palestinian Warning to Palestinians 

J ERUSALEM — The Israeli 
government announced to- 
day that Israeli Jews who sell 
land to Palestinians will face 
execution. "The death penalty 
will be imposed on anyone 
who is convicted of selling one 
inch to Palestinians." said the 
Israeli justice minister in an 
interview. "Even middlemen 
involved in such deals will face 
the same penalty." 

Change a few words and that 
is a real dispatch from Jeru- 
salem by The Associated 
Press. The warning of execu- 
tion was made — but by the 
minister of justice of Yasser 
Arafat's Palestinian Authority, 
Freih Abu Medein. It was a 
warning to all Palestinians. It 
should be taken as a different 
warning by Israel and those 
who wish it well. 

Imagine the worldwide de- 
nunciation had it been a warn- 
ing of execution to Jews from 

By A. M. Rosenthal 

Israel, for selling land to Pal- 
estinians. America and Europe 

erupt in justified fury. Pres- 

ident Bill Clinton is bom- 
barded by press questions and 
does not conceal his shock. 

Imagine the meetings at the 
United Nations, the boycott 
demands of the Muslim coun- 
tries. die mock honor of die 
budding China -Russia alli- 
ance. Christian church groups 
are publicly horrified, and so, 
too. the whole world of Jewish 

And what happened after 
the real death warning was dis- 
patched around die world? 
Why, nothing. No govern- 
ment, including those finan- 
cially holding up the Palestin- 
ian Authority, said anything. 
Nothing from the American 
Friends Service Committee, 
the National Council of 

Churches and other church 
groups normally solicitous of 
Palestinian rights, no angry 
foxes flooding in from Jewish 
groups, except die alert Anti- 
DefamarioD League. From the 
United Nations: nothing. 

The world refused to wit- 
ness, but the death warning 
was probably the most impor- 
tant statement. that the Arafat 
people have made since die 
Ctflo agreement for Israeli-Pal- 
estinian peace talks in 1993. 

Whether or not a peace 
agreement is signed, the Pal- 
estinian Authority made pos- 
sible by Israel is headed toward 
worldwide recognition as an 
independent state, whatever Is- 
rael might call it. And it will be 
one more Mideast racist des- 
potism on Israel's borders. 

Time and again, and pur- 
posefully. the Arafat Authority 

has shown where it is going. It 
jails political critics, makes 
deals with terrorists, talks re- 
peatedly in their language of 
incitement and jihad. 

As I began writing this, I 
became aware of the United Na- 
tions’ Geneva meeting and the 
New York Times article from 
Jerusalem on torture of Pales- 
tinians by Israeli, interrogators. 
Torture is wrong and unaccept- 
able, any place, any time. 

Friends of Israel understand 
the terrorist danger in which it 
lives perpetually. They know 
that torture of Arabs by Arab 
governments is unspeakably 
worse. For these regimes, it is 
routine, always was. But Israel 
i$ different. Using torture de- 
means its most important asset 
next to its defense force — 
civilized democratic decency. 

But I will not allow the co- 
incidence of the torture reports 
to prevent me from calling at- 

tention to the execution policy 
and what it should toll us all. 

Before the execution policy 
was announced, we knew that 
Mr. Arafat was creating a Pal- 
estinian despotism. What we 
did not know was how readily, 
bow silently the world would 
accept and welcome such a 

Tbe world, including the 
West, cares nothing for Arab 
human rights unless they are 
violated by Israelis. Nor does it 
care that every despotism on 
Israel’s borders is by nature 
and intent one more security 
threat. Now the silence in- 
forms those who do care. 

So whatever the result of 
negotiations, Israel will have 
to remain at arms until Pal- 
estinians achieve democracy, 
while perfecting its own. That 
will not be easy for Israel but 
then it never has been. 

The New York Tunes. 

American ‘Hegemony 5 ? The Influence Has to Be Welcome 

W INDSOR. England — In 
the latest in a valuable 
series of conferences on the 
sources of national vitality, the 
Luxembourg Institute for Euro- 
pean and International Studies 
recently brought senior Amer- 
ican and European political and 
economic historians together to 
consider the rise and fall (if any) 
of modem British and Amer- 
ican “hegemonies.” 

The veiy identification of the 
subject as worthy of such at- 
tention confirms the new tend- 
ency in American academic and 
policy circles to frame discus- 
sion * of America's policy 
choices in terras of the accept- 
ance, rejection, safeguard or ag- 
grandizement of American in- 
ternational hegemony. 

The modem understanding 
of “hegemony” usually re- 
flects the Italian Marxist An- 
ionio Gramsei's comention ihai 

By William Pfaff 

hegemony involves the impos- 
ition not only of the power of a 
dominant class or nation, but of 
its own way of seeing society 
and human relationships — of 
its own form of consciousness. 

Thus the hegemonic global 
position held by the British in 
the 19th and 20th centuries and 
by America today succeeds by 
inducing in others the British 
imperial or American view of 
the world, convincing the sub- 
jects of hegemony of the 1 'right- 
ness” of their subordination. 

They are influenced to see 
their own situation as the result 
not of the hegemonic nation's 
superior military or economic 
power but of its cultural or in- 
stitutional superiority over 
them. The hegemon's power 
disappears when the subject 
states or societies siart to think 

its influence oppressive rather 
than elevating or enlightening. 

So the position of America 
today is not simply that of * ‘the 
sole superpower’ * in military or 
economic terras, as George 
Bush would have said, but or a 
certain cultural domination. 

A great deal is made in the 
United Stares and abroad, of the 
global influence of American 
popular entertainment and pop- 
ular fashions. Disney, Holly- 
wood and Nike in this respect 
are political phenomena. The 
fact that teenagers the world 
over wear American ghetto 
styles and reversed baseball 
caps, listen to rap records and 
eat American fast foods is seen 
as a cultural conquest — a con- 
quest willed by those who sub- 
mit. They want to do this. 

We are talking here of an 

Reparations for Nazis 9 Victims 

By Stuart E. Eizenstat 

The writer, undersecretary of commerce for international 
trade, led the U.S. government study of Allied efforts 
to recover gold and other assets looted by Nazi Germany. 

U.S. government report 
released last week on gold and 
other assets looted by Nazi 
Germany shines a harsh spot- 
light on the role of the neutral 
countries, particularly Switz- 
erland. and on the Allies them- 
selves. Because of indifference 
by the neutral nations and in- 
action by tile United States and 
its allies, the horrors of the war 

were compounded by the in- 
» of the 

justices of the postwar period. 

The countries occupied by 
the Nazis received only partial 
compensation for gold looted 
from their central banks. Even 
worse was the plight of Holo- 
caust survivors and other vic- 
tims of Nazi persecution. 

The fate of individual vic- 
tims varied greatly according 
to their ability to mm to a 
government for assistance. 

It is the plight of the un- 
compensated victims, espe- 
cially those who survived both 
Nazism and four decades of 
communism, that most ur- 
gently demands action. 

There are some w ho say 
Star the best way to move for- 
ward. especially in light of the 
report's revelations, is simply 
to renegotiate the 1946 Wash- 
ington Accord, which estab- 
lished Switzerland's obliga- 
tions to those who suffered 
under the Nazis. While we ex- 
clude no option, we favor a 

broader approach to resolve 
the remaining issues. 

Three steps should be con- 
sidered in the coming months. 

First, S70 million remains in 
a gold pool established by the 
Tripartite Gold Commission, 
whjch after the war held gold 
looted from the central bonks. 
Yet, as our report documents, 
the pool also included some 
gold taken from individuals. 

The remaining gold is sup- 
posed to be divided among the 
claimant countries. But on 
moral grounds, and because we 
now know that personal gold 
was mixed with central bank 
gold, w-e believe a substantial 
portion of this remaining pool 
should be offered to the sur- 
viving victims of the Holo- 
caust and Nazi persecution. 

If countries were to offer 
this gold voluntarily, that 
would avoid the difficult task 
of renegotiating agreements 
from the war. 

Second, other neutral coun- 
tries such as Turkey. Portugal. 
Spain and Sweden that re- 
turned far less — in some cases 
virtually none — of the looted 
gold and assets they held might 
well consider following the 
lead of Switzerland in estab- 
lishing funds for victims. 

Major Swiss b anks and 
companies, along with the 
Swiss National Bank, have es- 
tablished a fond for needy 

Holocaust victims and their 
heirs. The government has 
also proposed establishing an 
endowment, based on a por- 
tion of its gold reserve, to gen- 
erate income for survivors and 
other humanitarian causes. 

Third, we must work to- 
ward the return of communal 
property such as schools, 
churches and synagogues, in 
countries such as Poland. Ro- 
mania and the states of the 
former Soviet Union. This in- 
cludes income-producing 
property that could be used to 
support funds for victims. 

Emphasis should be given 
to survivors in Central and 
Eastern Europe and the former 
Soviet Union who survived 
both Nazism and communism. 
These "double victims" have 
received little or no compen- 
sation from Germany, unlike 
those survivors who live in the 
West, some of whom have re- 
ceived monthly pensions. 

The Hungarian government 
has begun paying lifetime 
compensation. S20 ro S40 a 
month, to more than 20.000 
Holocaust survivors living 
there. We hope other countries 
will follow this example. 

Apart from these important 
financial steps, each nation in- 
volved must folly come to 
terms with its own past. 
Switzerland has established a 
commission to examine its en- 
tire historical relationship 
with Nazi Germany. Other 
countries, including Ponugal 
and Sweden.- have announced 
that they will follow suit. 

The New lint Times 

adolescent and entertainment 
"culture,” which is important 
but by definition superficial. 
But American business tech- 
niques, economic theory, forms 
of "multicultural'' social crit- 
icism, and philosophical ideas 
— not to speak of science and 
technology — are also widely 
accepted as currently the most 
modem and progressive. 

American ideas on world 
trade and industrial organiza- 
tion prevail among the indus- 
trial nations and in international 
organizations, as well as 
throughout a large part of the 
non-Westem world. Much of 
this influence is intellectual 
fashion, but it nonetheless 
makes a difference to those who 
accept it, and greatly reinforces 
the position of the United Stares. 
Is this enduringly important? 

The influence produced by 
the commercial dynamism of 
the American entertainment in- 
dustry is superficial in societies 
which have strong cultural 
structures of their own. There 
one can reasonably ask if it is of 
any greater significance than 
that, say, of “swinging” Bri- 
tain in the 1960s. which now 
seems simply quaint 

In culturally weak societies, 
such as a part of the Third 
World, or countries culturally 
devastated by communism and 
post-communism, the influence 
can be very damaging. The 
American-generated images of 
casual and pornographic vio- 
lence and self-aggrandizemem 
globally propagated by satellite 
television contribute to social 
and moral breakdown and vi- 
olence in such places. 

Another form of influence is 
positive and earned. It is true, 
that an economist at Harvard 
automatically gets an interna- 
tional hearing that an economist 
in Bolivia or Bulgaria does not 
but the ideas that have come out 
of the University of Chicago’s 
or Harvard’s economic or polit- 
ical philosophy departments 
have made their way because 
they are convincing. This is le- 
gitimate influence. 

The question that has been 
raised in Washington is whether 
deliberately hegemonic Amer- 
ican political, economic and 
military policies can or should, 
exploit “earned” influence in 
order to perpetuate or extend" 
American global power and try 
to make the 21st century more 
of an American century than the " 
second half of the 20th century 
has already been. 

Historically, hegemony pro- 
duces its own contradiction 
when the hegemon loses its cul- 
tural magnetism. Its rule then- 
becomes irksome and oppress-' 
ive. When the hegemonic- 
power loses its nerve,' or sees 
the disaffection of its elites, its 
subjects combine to overthrow ' 
it. or pillage the ruins. 

It is a signal that hegemony is ■ 
faltering when its leadership de- 
cides that cultural radiation and 
national quality are no longer 
enough, and substitutes force. 

As British history demon- 
strates. the successful hege- 
mony is the one absent- 
mindedly acquired and easily 
maintained. And the sun even- 
tually sets even on that. 

International Herald Tribune 

•Ci Los Angeles Times Syndicate. 


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1897: Greece Complies 

ATHENS — It is understood 
that Greece having given pos- 
itive assurances both in regard to 
the withdrawal of her troops 
from Crete and respecting 
Cretan autonomy, the Powers 
formally offered their good of- 
fices for mediation. The offer 
was accepted by the Hellenic 
Government. 77ie diplomatic 
pourparlers have now been 
brought to a definite conclusion. 
Greece has formally adhered to 
the preliminaries of peace agreed 
upon between the Powers. 

ted to the package because it 
was labelled “Christmas gift.” 
and they wondered why it had 
arrived so late. They noticed an 
aroma of fine brandy, and dis- 
covered that each chocolate 
contained a sizeable drink of 


1947: Simple Spelling 

LONDON — Simplified 
spelling. Bernard Shaw said in a. 
manifesto, would save two 
months working-time every 
vear for persons who write the. 
English language, and he sug-J 
moo u i o « i S esle d that "Pidgin” may be-‘. 

ly&Z: Bonbons Seized come the international language’ 

of the future. Changing to sim -l 

NEW- YORK — Billie Burke 
has a fifty-pound box of chocol- 
ates lying m the custom House 
here from a Paris confectioner, 
but the only chance she has of 
getting them is to promise they 
will be returned to the donor or 
destroyed. The attention of 
Customs inspectors was attrac- 

plifled spelling is a matter of* 
great urgency, said the play-' 

wrinhr anH nkil««n.l.» >*^'<*1 

wnght and philosopher, 
cannot afford to postpone it fort 
five minutes." he wrote.* 
Spelling a word as it sounds/ 
would save time, energy which, 
cannot be calculated, and speed* 
up the processes of education. ‘ 


PAGE 91 




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What s Warm and Fuzzy and Touchy-Feely? 

By William Safire 

derives from the Dutch vnos, “spongy, 
loose-textured." Fuzzy thinking is im- 

T¥ WASHINGTON •■», , ?*!*■«■ Fuzz >' wrilin S is m abomin ‘ 

W fir-v matK rr. W«w»n and auon. Nobody knows why the police 
^ meeIS »-*- are called the/icr. 

“ was the headline of . 

StionaiL!^ ?Sht - ma§a2ine about tra- 
t0 lhe baching of 

In another context, the two words 

S5 ES* aS ,^ - by Tom ^yden. the 
California politician, who spoke of 

community-based economic devel- 
ppment, admitting that the phrase 
sounded a little warm and fuzzy. 

The first primed use found so far of 
the cuddlmg adjectives was in a 1979 
Associated Press article about a com- 
petition among electrical engineers to 
make mechanical mice that “bore linle 
resemblance to the warm, fuzzy 
creatures they’re named for." Soon a 
duldren s book by Claude Steiner was 
titled Warm Fuzzv Talcs" and an act- 
ing company called itself the Warm 
Fu-Jes, turning the second adjective 
into a noun. 

The words are used together so often 
that the acting-company formulation 
has taken over: “Hard-bitten East 
coast trade negotiators,” wrote a New 
Yoric Times book reviewer in 1988. 
“will want to dismiss some of their 
arguments as typical California ‘warm 
Julies.' * The New York Times likes 
the phrase: “Even ‘gambling,' the 
term that once conjured up green vi- 
sors, cigar smoke, and gumboil-size 
pinkie rings,” wrote Gerri Hirshey in 
1994, "has been buffed with warm 
fuzzies. We call it ‘gaming* these 

The warm fuzzies in business use are 
“compliments intended to reassure 
and motivate’ ' and in more general use 
“lovable, squeezable, cuddly items or 
ideas.” Originally a description of the 
feel of a child's soft and furry play- 
thing, the phrase is now used in de- 
rision and has become a derogation of 
the treacly or overly em pathetic. 

The origin of fuzzy is sharp and 
clean its Scottish dialectical kin./ozy. 


Closely associated with the rise of 
the warm fuzzies is security blanket. 
“Perhaps the best idea lever had," the 
creator of “Peanuts," Charles M. 
Schulz, said in 1971, “was Linus and 
the security blanket. It suddenly made 
security blankets and thumb-sucking 
O.K. ail around the world." 

Asked recently if he recalled the 
moment of coinage, Schulz replied: “I 

Something is touchy- 
feely if it values the 
physical and emotional 
above the logical 
and the intellectual. 

think it was readers who called it that. 
Looking back now through our early 
reprint books, it seems that Linus hud a 
blanket in 1955; therefore. 1 assume it 
was because our first little boy had a 
blanket. His older sister had a small 
pillow that she carried around. 

This is all I remember, and 1 hope it 


Clutching my own small leather pil- 
low, a sentimental item I have lugged 
through life from my first office about 
that time, 2 now turn to another tactile 
expression that is used to castigate 
New Age executives: touchy-feely. 

“ Touchy-Feely Justice” is die cov- 
er-story headline in the May 5. 1997, 
Forbes magazine, as its editors blast 
“vague do-gooder laws." 

what is this tactile textuality? The 
best early definition was by John Algeo 
in the summer 1991 issue of American 
Speech: “association between persons 

based upon emotional sympathy rather 
than intellectual relationships, and ex- 
pressed by physical contacts such us 

His earliest citation is a Los Angeles 
Times article in April 1972 about sen- 
sitivity training: “Faculty critics de- 
ride it as ‘ touchy-feely * education." 

I presume it comes' from die phrase, 
prevalent in the ‘60s. to get in touch 
with your feelings . Algeo. reached in 
Wheaton. Illinois, agreed: "ll*s all very 
Marin County. Something is touchy- 
feely if it values the physical and emo- 
tional above the logical and the in- 
tellectual. It also values ‘interpersonal 
relations’ — which seems to presume 
that there can be ‘ extrapersona] re- 
lations. 1 U values the warm fuzzies." 

James Crotty, a slanguisi who goes 
by the sobriquet “the Mad Monk." 
reported that the '80s synonym was 
woo-woo: “The phrase touchy-feely 
was first used to describe therapy ses- 
sions at Esalen. a ‘retreat center in Big 
Sur. California. That's where get in 
touch with your feelings was bom. with 
the touch referring to kinesthetic feel- 
ing and the feel to affective feeling. 
Now the transpersonal psychology, toe 
hot-tub encounters and the New Age 
movement, all are scorned with the 
compound adjective touchy-feely." 

An early and frequent scomer was 
Meg Greenfield, a columnist for News- 
week and editor of The Washington 
Post's editorial page. In 1977, she used 
the phrase to draw a word-picture of the 
actions of members of the U.S. Senate 
during the Carter administration, “al- 
ways engaged among themselves in a 
kind of forced, touchy-feely bonhomie 
— a back pat here, a handclasp there, a 
playful nunishove, an earnest clutch of 
the other fellow’s lapel." 

It recently became a noun on tele- 
vision. In an episode of “Roseanne." 
the title character and her husband have 
had an argument. When their son-in- 
law soothingly says that neither one 
should be blamed, Roseanne’s sister 
replies. “We don’t need the touchy- 
feely right now.” 

New York Times Service 

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^Hollywood and the Talkie 
^ttevointroiL, 1926-1930 

By Scott Eyman. 413 pages. $30. Simon 
and Schuster. 

Reviewed by Jeanine Basinger 

F OR years, film historians have 
lamented die general tendency to 
oversimplify the story of the coming of 
sound to the motion picture. Folklore 
claims “Yon ain't heard nothin' yet” 
— Ai Jolson's grinning challenge to 
viewers In 1927’s “The Jazz Singer” 
— as the definitive beginning of the 
talkie revolution. Such drama was too 
good to forget, and also, it turns out, too 
good to be true. 

Scott Eyman sets die record straight 
in “The Speed of Sound." Although 
many books, articles, television docu- 
mentaries and even the movies them- 
selves have supported die myth that no 
audience had ever heard sound coming 
from a motion picture until “The Jazz 
Singer," die facts are quite different. 

“The Speed erf Sound” addresses 
historical assumptions and misunder- 
standings. It is readable, and superbly 
researched and detailed. Eyman tells die 
full stray of the development of sound 
for motion pictures, clarifying how 

sound capability existed for years be- 
fore “The Jazz Singer.” Problems with 
quality, cost, ease of method, and syn- 
chronization delayed progress, and in 
the meantime silent film grew into a 
popular ait form. When the Warner 
brothers decided to take a chance on a 
somewhat clumsy process that connec- 
ted the movie image on the screen to the 
playing of a wax phonograph in the 
projection booth, no one got particularly 
excited. As Harry Warner, the most 
skeptical of die siblings, said, “Who 
wants to hear actors talk?” 

Their process, Virapbone, became 
popular, and Warner Bros, released won- 
derful musical shorts starring such per- 
sonalities as George Bums and Grade 
Allen and added recorded scores and 
sound effects to silent films. The success 
of die Vitapbone shorts led the studio to 
take a chance on a full-length feature to 
mix both sound and silence, “The Jazz 
Singer.” When it premiered in October 
1927, die reception was enthusiastic. Ul- 
timately. the Warners’ sound-on-disk 
Systran, replaced by the more viable Fox 
Movietone sound-on-film method, 
would be obsolete by 1932. 

The transition to sound was a volatile 
time. Eyman has a keen appreciation of 
the madness of the era. He captures the 
frenzy that drove the business as it tried to 

master the new dimension, and as people 
began to realize that it was an unstop- 
pable revolution that could put even die 
biggest careers in jeopardy. He emphat- 
ically states that sound changed 
everything, not just bow movies were 
made but also, even more significant, 
what movies were. Screen comedy, 
which had readied a peak in the silent 
era, became primarily verbal instead of 

visual. The need for dialogue changed the 

star system, bringing in new actors and 
actresses who were stage-trained or who 
had unusual voices. New writers ton 
literature, theater and newspapers were 
hired. Sound also brought the unions to 
Hollywood. It was a major upheaval, and 
it all happened in just four years. 

Eyman is a first-rate film historian 
who has already proved himself with 
two excellent books. “Mary Pickford: 
America’s Sweetheart” and * ‘Ernst Lu- 
bitsch: Laughter in Paradise." Anyone 
with an interest in accurate film history 
or a desire to know what really 
happened in the era of die transition to 
sound would enjoy this book. You ain’t 
read nothing like it yet. 

Jeanine Basinger, the author of “A 
Woman’s View; How Hollywood Spoke 
to Women. 1930-1960 wrote t/us for 
The Washington Post. 



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C Lii ts.‘» 

By Alan Truscott 

B RIDGE wiQ be included 
in the competition at the 
second World Scholar-Ath- 
lete Gaines, in Newport, 
Rhode Island 
Participants, aged 16 to 19, 
will have proven ability both 
academically and athletically. 
There will also be discussion 
of issues such as ediics and the 
environment. Some scholar- 
athletes will present the group 
conclusions to the General As- 
sembly of the United Nations. 

One of the bridge players 
will be Joel Wooldridge, who 
at 1 1 became the youngest life 


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North and South were vulnerable. 
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West lad the (fifttnoud ace. 

master in the history of die 
game. He held the South 
cards on the diagramed deal. 

He landed in four spades 
doubled after a competitive 
auction and faced the lead of 
die diamond ace. A second 
diamond lead was ruffed in 
the dummy, and South threw 
a heart on the club ace. The 
club queen was led and ruffed, 
as East threw a diamond. The 
diamond jack was ruffed, and 
another club was ruffed in the 
closed band. Next, South 
cashed his top beans and 
ruffed a heart, reaching the 
ending shown at right: 

Needing two more tricks, 
Wooldridge led a club from 

dummy and overruffed East 
He then led the spade nine and 
could not be prevented from 
scoring his game-going trick 
with the spade queen. 


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as Ness, on a road 


34 Classic Bill 

canton phrase 
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knight; Abbr. 

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48 Sentimentalists, 

48 Superlative 
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Grant/Dorla Day 

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48 Conductor 



Si Explosive inits. 

82 Hasten 

S3 Khan 

84 Thurman of 
-Pulp Fiction* 

ss Mothers 

sa * — bin w'n 


©flew York Tunes/Edbed by Will Short*. 

87 Gun 



58 Codebreaker's 



Women's Double Role 

Continued from Page 1 

em beauty products that flooded the 
market once the Soviet Union collapsed. 
Young or old.* rich or poor, Russian 
women now spend a considerable 
amount of their disposable income on 
shampoos, depilatories, cosmetics and 
clothes. They have mostly ignored the 
kind of understatement and comfort now 
fashionable in the West J. Crew is not a 
popular look in Moscow; the ideal is 
Nolan Miller, who designed the femme 
fatale clothes worn by Joan Collins in 

They eschew narural-looking Mond 
highlights for vivid henna and improb- 
able gold tresses. Lipstick is red. foun- 
dation is thick, eyeliner is black and 

Even in the Parliament, where the dull 
gray business of government goes on. 
female employees can be seen wearing 
spangly cocktail dresses. Pants are un- 

Secretaries do not wear tennis shoes 
on the long walk and subway ride to 
work; they wear high-heeled pumps. 
Middle-aged matrons who scrape by on 
miserly salaries or pensions wouldn’t 
dream of wearing leisure suits or slacks 
to take their grandchildren to the pork or 
to the circus when they can wear suits 
and dresses. 

SUSPICIONS: Japan Gets What It Mints 

Continued from Page 1 

impression that sentiment was changing 
and establishing a new market trend as 
speculators' covering exposed positions 
set off a buying frenzy that would create 
iis own momenmm. 

It's a suspicion because anyone who 
knows wiU not talk — certainly not 
publicly, but not even privately. 

“You’re asking questions about a 
confidential relationship with very im- 
portant clients.” the central banks', said 
one senior banker. “1 wouldn’t com- 
ment even if I knew." 

Bankers were even unwilling to be 
quoted as saying that they suspected 
coverr intervention out of fear of of- 
fending. But Simon Crane, a London- 
based trading adviser, said that “intu- 
itively, I know that is exactly what has 
happened — but I have no evidence." 

The Japanese government has been 
broadcasting its intention to reverse the 
currency’s weakness since February, 
when the dollar surpassed 120 yen. At 
that level the yen was cheap enough to 
fuel an export boom that, it was feared, 
would provoke a new bout of trade fric- 
tions with the United States. 

But the threat of overt intervention 
was never taken seriously, even though 
the Bank of Japan has the means — S220 
billion in reserves that could be spent to 
support the yen. Given the weak state of 
the Japanese economy, the bank does not 
want to do anything that would force up 

the country’s record low interest rates. 

What form the assumed covert in- 
tervention took is a matter of specu- 
lation. The Bank of Japan could have 
told one or two banks to buy yen for 
dollars on behalf of the central bank. It 
also has more esoteric possibilities — ■ 
for example, it could buy options to sell 
the dollar at a fixed exchange rate, ob- 
liging banks writing the options to sell t 
dollars to cover their exposure. * 

As the ostensible trigger for the ex- : 
change rate move was a sharp seli-off in > 
the government bond market, the central 
bank could have been operating in the ■ 
derivatives market, putting upward pres- 
sure on short-term interest rates to create . 
the impression an official rate increase » 
might be looming. 

But analysts rule our the likelihood of > 
an imminent rise in Japanese rates. Eco- 
nomic growth is still anemic though < 
picking up, inflation remains low and 
fiscal policy is tightening in an effort to , 
reduce the government's deficit spend- 
ing program. 

At present, the capital outflow — con- ■ 
tributing to a weakening yen — has 
slowed to a trickle. 

Analysts say they believe investors 
are holding track, waiting to see where 
the exchange rate settles and what Fed- 
eral Reserve Board policymakers decide 
about U.S. interest rates when they meet 
May 20. Only then will it become clear 
whether the yen has moved to a sus- 
tainable higher range. 

They are, in pan, still rebelling against 
Communist system that tried to ban 
frivolity and strictly limited consumer ‘VE'TVT. m i nr •! n* i tt a Oa t 

goods, bui women also expect to be I JhiM lokyo Jttails Rise and Vows to btep In 

treated as women. 

And future generations are being pro- 
grammed the same way. In state schools, 
little girls wear dresses and hair ribbons 
to kindergarten. 

By junior high school, boys do wood- 
working and car repair, and mils take 
sewing and cooking classes. Teachers 
reprimand children who try to cross 
over. Last week, the Yeltsin adminis- 
tration formed a commission to inves- 
tigate the dearth of women in high gov- 
ernment office, then appointed a man, 
Deputy Prime Minister Oleg Sy suyev, to 
lead it. 

Courtship in Russia is dizzyingly ro- 
mantic and atavistic: There is no such 
thing as a Dutch treat. Men open doors, 
it cigarettes and do all tire driving. 
Wen wear tons of makeup, perfume 
and high heels and expect and receive 
caruty, flowers, gifts, poetry and lavish 
compliments from their admirers. All of 
that usually comes to a shuddering halt 
as soon as the wedding is over. 

Youth ends abruptly. Women endure, 
complain and nurture. Men muddle 
through on vodka. 

Back on crowded streets, you can see 
grown Russian women w alkin g hand in 
hand. Their faces, however, are once 
again wearing die mask of weary in- 
difference: They are asserting their right 
to be alone. 



Continued from Page 1 

account surplus and prevent a new trade 
conflict with the United States. 

The yen’s more than 50 percent fall 
since it hit a record high of 80 yen against 
die dollar in April 1995 has sparked a 
boom in Japanese exports. That has 
angered U.S. manufacturers and promp- 
ted Washington to warn Tokyo to keep 
its trade surplus in check. 

Mr. Mitsuzuka said: “My under- 
standing of die currency markets in the 
past several days, which show a cor- 
rection in die yen’s weakness, is that the 
G-7's strong resolve has started to pen- 
etrate the markets." 

Mr. Mitsuzuka and Mr. Sakalobara 
made their comments on the o] 
of die Asian Development Bank’s I 
day annual meeting here. 

Until last week, the dollar had risen 
steadily against the yen because of ex- 
pectations that U.S. interest rates would 
be increased while interest rates in Japan 
remained at their record lows. 

But in a speech Friday, Alan Green- 
span, chairman of die Federal' Reserve 
Board, hinted that die Fed might leave 
rates unchanged when its policymakers 
next meet May 20. “There’s scant ev- 
idence of any imminent resurgence of 
inflation," he said. 

KOREA: Army Declares ‘Mir’ on Famine 

Continued from Page 1 

Food aid has become a key issue in 
negotiations to get North Korea to join 
peace talks with South Korea, the United 
States and China to formally end the 
1950-53 Korean war. which ended in an 
armistice. North Korea insists that to 
begin negotiations, it mast have far more 
aid than what has already been promised 
by the United Stales. Washington has 
said (hat once the peace talks start, more 
aid is a possibility. 

A newspaper in Hong Kong, the 
South China Morning Post reported 
Sunday that many soldiers were starving 
and roaming famine-hit cities and rural 
areas, demanding food and money. 

■ Talks on GIs Break Down 

Talks on accounting for American 
soldiers missing in the Korean War have 
ended with no agreement The Asso- 
ciated Press reported. The head of the 
U.S. delegation said the negotiations 
broke off after six days of meetings. 

His comments coincided with spec- 
ulation that the Bank of Japan could 
tighten credit as early as July because of 
stronger than expected growth in Japan, 
reflected by a more than 1 0 percent rally 
in share prices since mid-April. 

At the same time, market analysts said 
Tokyo appeared eager to head off trade 
friction with Washington by bolstering 
the yen ahead of the G7 summit meeting 
in June. Its trade surplus with the United 
States has risen for the six month in a row 
— soaring 1 1 .2 percent in March alone, 
to $3.04 billion. 

These factors sent tire dollar, which on 
May 1 readied a four-year high of 
127.50. tumbling below 120 yen. That 
was its lowest point since Jan. 27 and 
capped a week in which the dollar 
suffered its biggest drop against the yen 
since the week ending Sept. 27, 1985. 

Nonetheless, economists were di- 
vided over whether the yen would con- 
tinue to appreciate against tire dollar. 
Some said the yen would continue to 
rise. Washington has repeatedly urged 
Tokyo to galvanize its economic re- 
covery by increasing domestic demand 
rather than relying on exports to lead the 
way. But given Tokyo’s determination 
to get its budget deficit under control, 
continuing to strengthen fire yen looks ' 
like the only way to rein in the trade ’ 
surplus, some economists said. 

But others said that with the U.S. 
economy still racing ahead and interest 
rates significantly higher than in Japan. , 
it was only a matter of time before the ' 
dollar began to appreciate against the 

Moreover, they said Tokyo was re- 
luctant to let the dollar fall too far be- 
cause that would hurt exports and could 
undermine Japan’s economic recovery. 

Major Japanese manufacturers have 
figured their internal costs based on an 
exchange rate of 115-120 yen to the 
dollar in the first half of the fiscal year 
starting in April, meaning that a steep 
rise in the yen’s value beyond that would 
hit them hard. 



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?U.S. Bond Traders Abandon Their Belief That Fed Will Raise Rates Soon 

CdipiM bf Out 5btf 'Fran Dt^rnim 

NEW YORK — The consensus view 
of bond investors that the Federal Re- 
serve Board is poised to raise interest 
rates this month has evaporated now that 
the Fed chairman, Alan Greenspan, has 
said the economy is behaving itself. 

The yield on the benchmark 30-year 
U.S. Treasury bond, which finished Fri- 
day at 6.89 percent, is more than a 
quarter percentage point lower than it 
was in mid-April. Then, most investors 
\ were convinced the Fed's March rate 
increase would be the first of a series of 
i mcreasesaimed at curbmg growth in cfte 
economy and keeping inflation at bay. 
- Fed policymakers next meet May 20. 

Mr. Greenspan discouraged this per- 
_ ception in a speech Thursday, saying, 

• “1997 is not 1994," the year in which 
the central bank launched a series of 

going to see die ‘Incremental AT we 
saw back then." said Mark Miller, who 
manages $500 million in fixed-income 
assets for Kayne Anderson Investment 

Mr. Miller said Mr. Greenspan's re- 

marks Thursday had changed his view 
of what the Fed will do this month. 

seven rate increases. 

“If 1997 is not 1994, then we aren't 

of what the Fed will do this month. 

* ‘I was pretty bearish and thought the 
chance of them going" in May was 
“preny good,” he said. Now, together 
with signs that the economy is slowing in 
the second quarter, he said, Mr. Green- 
span's comments suggest die central 
bank could hold off until September. 

“It's kind of hard for the Fed to 
justify doing anything the 20th of 
May,” said Joseph Whitbread, who 
helps manage about $36 billion of bonds 
for Loomis Sayles & Co., given signs 
that inflation is subdued and ther econ- 
omy may be slowing a bit 

“The market was obviously leaning 

toward negative indications from 
Greenspan,’ said Michael Mullaney, 
who helps manage about $65 billion of 
bonds for Putnam Investments. “Since 
he didn't deliver that, investors took it as 
a positive." 

The Fed increased its target for 
overnight lending between banks in 
Match by a quarter of a percentage point, 
to 5.50 percent, die first increase in two 
years. Judging by futures on Eurodollars, 
or dollars on deposit outside tbe United 
States — among die most sensitive to 
Fed rate expectations — fewer investors 
expect another increase this month. 

Another indicator of a brighter out- 
look for bonds is in the futures market 
June contracts for three-month Eurodol- 
lars have an implied yield of 5.89 per- 
cent down from 6.03 percent late last 

To be sure, many investors are re- 
luctant to make a big bet on bonds 

because they still expect -the Fed to 
increase rates at least once more in the 
months ahead, if not on May 20. 

Some investors note that current 
yields, following the recent rally, do not 
adequately reflect the risk of a rate in- 
crease this month. Thar could lead to 
losses for some investors. should the Fed 
indeed take action May 20. 

Even Mr. Miller at Kayne Anderson 
was not encouraged enough by Mr. 
Greenspan’s words to begin buying 
government bonds in a big way. He still 
likes mortgage-backed bonds and other 
securities chat pay an extra yield, or 
spread, above Treasuries. 

A batch of economic reports slated 

for this week are expected to provide 
more evidence that the economy has lost 
steam in the second quarter after run- 
ning at a robust 5.6 percent annual pace 
in the first three months of the year. 

The government is expected to say 
prices paid by producers were un- 
changed in April and climbed a modest 
0.1 percent for consumers. Other reports 
are exported to show industrial produc- 
tion climbed 0.2 percent in April, while 
retail sales fell slightly in the month. 

Signs of slack in the economy and 
low inflation, if they are seen as keeping 
the Fed from raising rates, could drive 
yields ro as low as 6.75 percent soon, 
investors said. 

“As long as the numbers continue to 

• : . -1- ■ _ - J . i 

come in lower than expected, it will take 
a lot of worry out of the market as for as 

a lot of worry out of the market as far as 
Fed rates are concerned,’* Mr. Miller 

said. “If we start to see a slowdown, 
bonds will really start to rally.” 

But another . bond trader said he did 
not think Treasuries represented much 
value at curxent levels. 

‘ * ‘If we get a soft retail sales num- 
ber, we can trade up again, and maybe 
st rain ” bond prices, he said. But he 
added: “It’s more a momentum thing. 
If you buy them here, you’re buying 
them because 'you ’re hoping to sell 
them to someone else , at a higher 
level. ’ ’ (Bloomberg . Bridge News ) 

European Investors Warily Await Decision 

Most Active 


By Carl Gewirtz 

International Herald Tribune 

The 250 most active International bonds traded 
through the EuitxSear system for the week end- 
ing May 9. Prices supplied by Telekuts. 

Rnk Nome Cpn Maturity Price Yield Me Name Cpa Maturity Price YleM 

Cpn Maturity Price YleM 

Australian Dollar 

■ 240 Australia 

12 11/1501 117.9050 10.1800 

Austrian Schilling 

187 Austria 5* 04/11/07 100.0000 5J500 

. Belgian Franc 

184 Belgium 5 

9 03/2303 1197500 7-5200 

British Pound 

89 EIB 7*t 

143 World Bank zero 
188 Britain . 7 

192 Exlm Bk Japan 8 
1W EIB 6 

208Cwealtti Dev Bk TVs 
220 Morgan St FRN 658 

222 Rabobank 61a 

223 Britain 6tt 















Canadian Dollar 

165 Canada 
212 Canada 
226 Canada 

4 OV15/99 984400 40600 
8 0401/23 110.0000 7.2700 
7 Vt 120103 105-8371 70900 

Danish Krone 

74 Germany 
76 Treuhand 
79 Germany 

83 Germany 

84 Treuhand 

85 Tree hand 

86 Germany 
88 Germany 

91 Treuhand 

92 Germany 
94 Germany 
96 Germany 

98 Deuf AusgieJchs 
102 Treuhand 

104 Germany 

105 Germany 

108 Germany 

109 Treuhand 

111 Germany 

112 Germany 

113 Germany 

126 Germany 

127 Germany 

128 Treuhand 

129 Dresdner Fin 

136 Germany 

137 Treuhand 
139 Germany 
141 Germany 
146 Germany 
149 Germany 
163 Germany 

168 Treuhand 

169 Germany 
172 Germany 
177 Russia 
179 Germany 

- 8 Denmark 

21 Denmark 
23 Denmark 
27 Denmark 
33 Denmark 
36 Denmark 
,45 Denmark 

65 Denmark 

66 Denmark 
78 Reaf Kredtt 

103 Denmark 
s 120 Denmark 
< 138Nykredtt Bank 
145 Denmark 
150 Denmark 
•' 157 Nykredlt3Cs 
' 158 Denmark 
. 232 Realkredit 

1 001/26 




















198 Germany Thins zero 

199 Germany 
203 Germany 

207 Nat Bk Cda Fm 3-254 

21T NorddeutLB 4<a 
218 Germany Thins zero 
225 Cap Credit Card 5* 
239 Germany 64k 

241 Germany 6ft 

242 Germany SVi 

250 Germany FRN 3.031 

09/1498 100.1000 
04/29/99 1046038 
01/2201 1156400 
05/20/99 1046300 
07/29/99 1056650 
04/2303 107.1700 
02/2498 102.0500 
04/2203 108*4900 
11/1203 1046250 
O7A504 108.1200 
01/1300 107.8100 
O7AM07 100.4950 
12/17/98 10X2900 
05/2101 1146500 
09/15/99 106.7450 
08/2100 1136400 
01/14/99 1026100 
10/2102 110.9450 
02/22/99 1036632 

osmm 104.1200 

02/2098 1026400 
11/25/99 1076200 
04/3004 99.9500 
12/22/97 1026400 
09/2498 1026700 
002098 1026850 
09/22/97 101.7623 
06/21/99 106.1750 
05/2098 103.0300 
1202/99 1056400 
069598 102.9900 
KV20/98 1026200 
01/2098 97.9941 
03/2504 996750 
02/2100 1096400 
10/17/97 97.9570 
02/24/99 1056700 
10/20/97 1016200 
050702 996200 
06/1500 100.4000 
07/18/97 99.4554 
OS/1501 1036134 
OB/1498 1036950 
05/2098 1011432 
02/25/96 1016000 
09/3004 99.1300 


93 Spain 
159 World Bank 
182 World Bonk 
215 Austria 
233 World Bonk 
244 Fannie Mae 

110 09/2006 102.7500 10200 
4ft 03/20031110000 19800 
4U 1Z/2Q04 1156750 4.1000 
S'A 02/18/98 1013750 56800 
41k O6/2Q0O 1096000 4.1100 
2 12/20/99 1016750 1.9600 

South African Rand 

194 Worid Bank 
209 EBRD 

zero 0401/22 46750113800 
zero 0407/27 36000116500 

Swedish Krona 

97 Sweden 
151 Sweden 
166 Sweden 1037 
200 Sweden 
21 7 Sweden 1036 

11 01/21/99 1096139 106200 
6V. t 10*2506 966453 6.7400 
8 001507 1066030 76300 
515 04/1202 976719 56500 
10V4 050500 1110733 96600 

U.S. Dollar 

2 Brazil Cap S.L 4 ft 04/15/14 85.7280 56500 
4 Argentina par L 5M 0301/23 65.1B63 86500 
9 Argentina FRN 6M 03/2905 896537 76500 
14 Venezuela FRN 61k 12/1307 88M2S9 76500 
IB Argentina 113k 01/30/17 1076569 106500 

19Me*C0 lift 05/15/26 1086206106000 

22 Brazil L FRN 6ft 04/1506 90.0281 7.6400 
25 Venezuela par A 6* 03/31/20 711010 96300 
31 Brazil par 2 5U 04/1504 646438 8.1600 

37 Brazil S.L FRN 6% 04/15/12 806438 86800 

39 Mexico parB 
44 Bulgaria FRN 
50 Brazil FRN 
' 52 Mexico par A 
55 Mexico 

6U 12/31/19 736557 86300 
6?* 07/28/11 626850 10-4200 
6ft 010101 98.1563 6.6200 
6U 12/31/19 73.7813 14700 
lift 09/15/16 1076750 106600 

59 Brazil S6I FRN 6ft 04/1504 816818 86200 

PARIS — With the dollar down 2.4 
percent against foe Deutsche mark last 
week, with yields on U.S. government 
securities back down to levels last 
seen in mid-March and with the Dow 
Jones industrial average comfortably 
back above 7100, European financial 
markets appear ro have ruled out any 
danger of another increase in U.S. 
interest rates when Federal Reserve 
Board policymakers meet May 20. 

As it is not clear that confirmation 
by the Fed would be enough to drive 
prices further, while an increase in 
rates would undoubtedly cause prices 
of both bonds and stocks to decline, 
analysts say this is a good time to sit 
on the sidelines. 

“Investors are reluctant to make 
new commitments." said Roger Bates 
of Deutsche Morgan Grenfell. 
“They’re either sitting on cash or 
building up holdings of floating rate 
notes." which offer the greatest pro- 
tection against a rise in interest rates. 

As for the dollar’s soggy perfor- 
mance. analysts are divided on wheth- 
er it has lost its underlying dynamic of 
expectations of rising interest rates or 
whether the currency was a victim of 
the upset in the pound. The British 
currency dropped against the Deut- 

sche mark on rumors that die new 
Labour government would take foe 
currency back into Europe’s fixed ex- 
change rate system at a central rate of 
2.5 DM — well below the prevailing 
market rate. The pound finished last 
week at 2.74 DM. 

The pound was also hit by rumors 
that tbe new government would soon 
announce spending cuts arid a tighter 
fiscal policy to relieve pressure on the 

‘Investors are reluctant 
to make commitments.’ 

Bank of England to raise interest rates. 
The rumors added further luster to 
bond prices, already booming on foe 
news the central bank would be free to 
set interest rates at its discretion, but 
caused tbe currency to lose its shine. 

A number of traders said that buy- 
ing of the mark in London pushed up 
foe German currency against virtually 
all other money . Other tradeis insisted 
that the dollar fell on diminished 
hopes for a rise in interest rates. 

“If you’re an optimist on foe dol- 
lar's outlook you can say the sell-off 
was an overdue correction after a sus- 
tained rally." said Neil MacKinnon of 
Citibank. “If you’re a pessimist, you 
can say that the dollar has seen its peak 

and is headed for a nasty downturn." 
Mb’. MacKinnon described himself as 
“leaning to foe bullish camp” for foe 
dollar in Europe. 

“Germany can’t yet support the 
dollar back at 1.60DM,” he asserted. 
The dollar ended the week at 1.6875 
DM, its lowest level since early 

• The prevailing view among ana- 
lysts is that foe dollar is not yet in a 
downtrend in Europe but also, has no 
power to climb unless the Fed does 
increase rates. 

Yet another uncertainty is the impact 
on U.S. bond prices and yields if .the 
Japanese, usually very large pur- 
chasers, maintain their current stance of 
staying at home. 

“The Treasury market is very de- 
pendent on foreign support and hence 
exposed to policy changes outside die 
United States." said Mark Cliffe of 
HSBC Markets. 

But Mark Wanshel at J. P. Morgan 
sees little threat. Noting that tbe 
Treasury had already announced 
plans to pay off $65 billion in debt this 
current quarter, he estimated that total 
net borrowing this year could run 
S100 billion less than a year ago. 

“I expect any weakening in foreign 
demand for Treasuries to be more than 
matched by the lower supply," he 

62 Japan Dev Bk 

63 Ecuador FRN 

7 050202 1006000 6.9700 
3U 02/28/15 646200 5.0300 

77 Brazil Si. FRN 6VU 04/1509 856250 8.1000 

80 Ecuador par 

02/28/25 43.7500 66500 

Dutch Guilder 

81 Argentina FRN 6ft 03/31/23 83.9375 76900 

Deutsche Mark 

1 Germany 

3 Germany 
-5 Germany 
6 Germany 
■ 7 Germany 

10 Germany 

11 Germany 

12 Germany 

13 Germany 

15 Germany 

16 Germany 

17 Germany 
20 Germany 
24 Germany 
26 Treuhand 

28 Treuhand 

29 Treuhand 

30 Germany 

34 Germany 

35 Germany 

38 Germany 

40 Germany 

41 Treuhand 

42 Treuhand 

43 Treuhand 

46 Treuhand 

47 Germany 

48 Treuhand 

49 Germany 
51 Germany 

53 Germany 

54 Germany 

56 Germany 

57 Treuhand 

58 Treuhand 

60 Germany 

61 Germany 
64 Germany 

68 Germany 

69 Germany 

70 Germany 
73 Germany 

6 010407 
4« 11/2001 
3M 030 9/99 
6W 04/2606 
8 01/7102 
6 070407 
7ft 010305 
6ft 10/1405 
6 010506 
5 08/2001 

5 05/2101 
616 0104/24 
6ft 05/1205 
A 02/1606 
6ft 0701/99 
7ft 090904 
7ft 100102 
8ft 09/2001 
5ft 02/2101 

8 07/2202 
6ft 07/1503 
5ft ayisw 
7ft 120202 
7ft 01/2903 
6ft 070903 
6ft (Q0404 

9 1CV2Q0O 
6ft 03/26/98 
5ft 08/22 00 
7ft 12/2002 
7ft 11/1104 
5ft 110100 
3ft 12/18/98 
6ft 06/1107 

6ft 05/1304 
Bft 02/2001 
Bft 08/2001 
Bft 12/2000 

6 09/1503 
6ft 03/1500 
6 06/20/16 











































32 Netherlands 
67 Netherlands 

71 Netherlands 

72 Netherlands 
75 Netherlands 
90 Netherlands 
95 Netherlands 
99 Netherlands 
11 4 Netherlands 
116 Netherlands 
118 Netherlands 
125 Netherlands SP 
130 Netherlands 
133 Netherlands 
144 Netherlands 
161 Netherlands 
171 Netherlands 
176 Netherlands 
214 Netherlands 
238 Netherlands 
245 Netherlands 

6ft 07/15/98 

6 01/1506 
8ft 03/1501 
5ft 02/1507 
8ft 050100 
7ft 01/15/23 
7ft 030105 
9 01/1501 
0ft 061502 
7 ft 0615/99 
7ft 04/1610 
zero 01/1623 
6ft 11/1505 

7 061605 
8ft 09/1501 
7ft 01/1500 

7 03/15/99 
5ft 09/1502 
9 05/1500 
8ft 02/1500 
6ft 04/1503 


1 00.7800 


82 Glaxo 

100 BCO Com Ext. 

7 050202 100X250 69600 
7ft 020204 91.8750 7.8900 

New International Bond Issues 

101 Venezuela par B 6ft 03/31/20 7X3750 9.2000 
107 Belgium TWII zero 0630/97 97.1907 55400 
110 Mexico FRN 7ft 080601 101.1800 7.7800 

115 Russia 9ft 11/2701 98.0000 9.4400 

117 Bulgaria FRN 69u 07/28/24 662813100500 
119 Bulgaria 2ft 07/28/12 48-5638 4.6300 

121 Argentina FRN 5.703 090102 1 1X0000 4.9500 
1 24 Argentina FRN 5703 040101 12X5000 4.9500 
132 AAextCO A FRN 6067 12/31/19 89.1563 7.7000 
134 Brazfl Cband S.L 4ft 04/1614 85.9888 57300 

Compiled by Laurence Desviletfes 



Coup. Price 

Mat. % Price end 

Floating Rate Notes 

135 Lu Writer Fin. 

3ft 050602 105-2500 X3300 

Assod ates Coip. of N o rlti 

2002 ft* 99.837 — Over 3-fnarrth Lear. NancoNabto. FCesOXOfc. UP.Marpan SecurffiesJ 

142 Mexico D FRN 6352 12/28/19 89X729 7.1000 

147 CADES 

148 Argentina 
152 Peru Pdl 
154 Poland FRN 
156 Poland Inter 
160 Panama FRN 
164 Ontario 

167 Nigeria 

6ft 03/1102- 983732'' 65900 
11 100906 107.8649 102000 
4 0307/17 615625 65000 
6’V‘n 1Q/27/24 98.1771 7.0700 
4 10/27/14 B3.0000 4.8200 

4 07/17/16 861250 4.6400 
7ft 0604/02 10X6230 7X800 
6ft 11/1620 648750 9.6300 

AT & T Universal Card 

20074 0.09 100.00 — Over 3-monm Libor. Average life 4X3 yeare. Fee* not avonobie. (Lehman Brafherelnnj 

Korea Long-Term Credit 

1998 0.35 100.00 - 

Over 3-month Libor. NoAoaKnbie. Fees 608%. Denominations 5356000. (ABN-AMRO Haora 

Lehman Brothers Holdings 

2002 0-30 99.783 
2007 0.30 99.848 

— Over 3-month Libor. Nanambie. Fees 035%. Deromtnaftora n 00000. (Lehman Brothenj 

10 Venezuela FRN 6ft 03/1807 89.6875 7.5300 
173 Ga De Energla 9ft 050205 1008750 9.6700 

Interest win be 0J0 aver 3awnth LHnr imM 2002. ItiereaRar IjQS aver. Callable at parfram 2000. 
Fees 0X0%. DenorrinaltanB SI 0000. (Bear Steam Inti) 

87 France OAT 
106 France OAT 

122 France OAT 

123 Britain T-nate 
131 France OAT 
153 Britain 

155 France OAT 
183 Britain 

189 France BTAN 

190 Italy 

236 France OAT 

237 France OAT 

Bft 03/1502 

5 01/2099 

5ft 04/2607 
9ft 02/2101 
7ft 04/2605 

4 01/2800 

5 03/1699 

6 040204 
9ft 04/2500 
6ft 04/2502 








175 Ecuador FRN 
178 Panama 
181 IADB 

191 Fst Nat Bk Chic 
193 Brazil 
195 Canada 
197 Mexico 

69 K 02/2025 67.1875 9-5800 
3ft 07/17/14 75X000 4.6700 
Bft 12/2003 99.1609 8X500 
6ft 030707 97.7500 67800 
7 060000 100X000 69700 
Oft 110501 101X750 8.7100 
6ft 063001 99X250 65200 
9ft 020001 1048750 9-3000 

2007 0X0 100.00 — 

interest uffi be 0X0 onrfrnanlti Liber i/nt» 2004 when Issue hatOable at par, thereafter ?J0 
over. Fees 0X6%. Denominations 550000. (J J*. Morgan SeoKfltasJ 

2001 0.08 100.005 — Over 3-monta Libor. Noneallable. Fees not avallabie. (Deutsche Margai GrentML) 

201 British Telecom 6ft 04/2502 99.6250 67800 




2004 0.24 100.00 — Over 3-momti Ubor. Average IHe3X years. Fees 0.19% Denominations £10<M>, fCHIbonX inn.) 

ITL500.000 2004 1X0 100-00 — Over 3-monm Ubor. Reoflered at 99.90. Noncoiahte. Fees 050%. (Deutsche Morgan GranfelU 

09/1613 74X600 8.0600 

ITL650000 2001 ft 100.00 — Over 3-morffli Libor. Noncnllabte. Fees 0X0%. (Credlto ItaBonaj 

204AmexCred FRN 5.91 060102 99X000 5.9300 World Bank 

ITL200000 2007 020 100ft — 

Finnish Markka 

186 Finland sr 1999 11 01/1699 111X970 9.8500 

206 Poland par 
210 Peru 

213 East Japan Ry 
216 Italy 

5.977 04/2902 99X500 5.9900 
3 1027/24 55X854 5X000 

3ft 0007/17 55-7500 5.8300 
7ft 10/1106 99.3750 7X000 
6ft 09/27/73 92.0000 7X700 

219 Mexico B FRN 6X36 12/31/19 89.1250 7.6700 
221 Abbey Natl TS 6ft 03/1802 97X500 65200 

French Franc 

01/3007 97X500 7X000 
02/1307 99X750 7.0400 

Mardon Underwriting Nbrl 


ABB Finance 
Banco BCN Barclays 

2004 0.10 100.00 — 

Over 12-monffl Ubar. Rootieml at par. COKoMe or ptr tram 2003. R»s 040%. (Corfpio J 
Beta* Xnontti Ubor. Callable at par from 1996 Fees not disclosed. (Sonwa infix 

2004 6ft 101.145 99X5 Reoffered at 99X7. Noncntloble. Fees 2%. (UBS.) 

99X66 — 

Semiannual Interest wm be 9% until 2002. when issue Is artfabte at pan ttierealterVWfc. Fees 
not ovallabte. Registered nates In denomtaaitans at SI 6000. (Barclays de.Zoete WedcLI 

162 France OAT 
185 France OAT 

7ft 10/2505 115.0400 67400 
7ft 04/2506 111.8900 6X800 

229 Philippines Fa 8ft 1007/16 99X489 8.7900 

231 France B.TAN. 5ft M/1201 1047700 5X900 
249 AGF Assur 3ft 0701/10 100X955 3X800 

Irish Punt 

6ft 10/1801 101.7400 6X900 

229SalReMae 4ft 080209 95.8750 4X900 

230 Ontario 6 02/2106 92.7500 6X700 

234 EIB 7ft 04/2307 101X237 7.1400 

235 Atlas Homos lift 04/3002 102X500 11.0700 

243 Argentina FRN 5.703 040107 119X000 47BOO 

246 Den Danske Bk zero 080097 98X936 5.7800 

247CC Desfanllns zero 000097 99X671 5X400 

248 Italy FRN 5’h* 002001 100-0500 5X800 

Bytilos Bank 
Coca-Colo Amafll 

2002 8ft 99.88 — Noneallable, Fees 1 W6 Denominations 510X00. (ABN-AMRO Hoore GavetL) 

2002 6ft 101.127 99X5 Reoffend at 99X27. Noneallable. Foes 1 Wft. (SBC Wartxitg.) 

2000 6ft 1 01 .0775 1 00.00 Reoffend at 94B*. Noneallable. Fees 1 W% (IBJ lrjrt.1 

2002 6ft 101.425 99.95 Reoffend at WAANoncollaHe- Fees l DenonUnailons 510X00. (CS First Boston.) 

Hitachi Finance 

Oeffentllche Bank 

Morgan Guaranty Trust 

2002 6ft 101X41 99.79 Reottered at 99X16 Nancnflobte. Fees r*%{J.P. Morgan securities) 

The Week Ahead: World Economic Calendar, May 12-16 

Swire Podfic Capital 

A schedule ot Wg week's oconamc end fhanaal events. compiled tor ffw International Herald Tnburta by Bt oomt erg Business Nevtz. 

$300 perpt 8.64 100.00 — Quarterly. CoBabfe at per from 2017. Fees 7 W (Merrill Lynch IntU 

DM300 2002 4ft 101X1 99X5 Reoffered at 9956. Noneallable. Fees 2*:«. ilNG Barings.) 

DM300 2004 5ft 101.70 — Reoriered al 99* ^ NoncQilobte. Fees (Dresdner KJetauatl Benson.) 


Expected Fukuoka, Japan: Asian Develop- 
This Week merit Bank annual board of gov- 
ernors meeting. Governors, finance 
ministers and central bankers from 
the 56 member countries to attend. 
Through Tuesday. 


Budapest: "Corporate Governance. 
Financial Market and Global Con- 
vergence," organized by Societe 
Universitaire de Recherches Fi- 
nancieres and Robert Triffin-Szirak 
Foundation. Wednesday through 




2001 4’ i 101.055 99.45 ReofiercdertWXXNoncadable. Fees lftS.(iNG Barings.) 

Quebec City: Asia-Pacific Econom- 
ic Cooperation forum meeting of se- 
nior officials. Starts Tuesday. 

Belo Horizonte, Brazil: American 
Free Trade Area conference of 34 
trade ministers from the Americas 
and Caribbean nations. Friday and 

World Bank 

4ft 102.16 — 

Rcoffered at 100.785. Nancnllabie. Fungible with outstanding issue, raising total amount to 1 
bOtlon marks. Fees 1**%. (WesfLSJ 

Carrion Communications 

7ft 100.92 — 


6U 100.155 — 

Eledricrie de France 
Union Bank of Switzerland 
World Bank 

6X0 100.10 — 

Reoffered at 99X95. Noncaflatte. Fees 2S. (Barclays de Zoefe wedd.) 
Semiannually. NoacaUabte. Fees Iftfj. (Nomura inrt.l 
SemlannuaVy. Noncottowe. Fees IfeV t Nomura Inti) 

May 12 

Manila: Local government elec- 

Sydney: Housing finance data for 

Earnings: CSR, Secom. 

Basel: Group of 10 monthly meet- 
ing of central bank governors. 
Copenhagen: Current account and 
trade balance data for February. 
London: Producer price index. 
Prague: Consumer prices data for 

Ottawa: New-home price index for 

Sao Paulo: Auto production data 
for April. 

Eamfngs expected: Loral Space & 

Merrill Lynch & Co. 
European Investment Bank 




7ft 99X13 
"7 99.792 

— NoncoBdWe. Fees 0X25%. (UBS.) 

5ft 99,89 

— NamnaatHe. Fees 0X5%. (Barclays de Zoete Wedd.) 
1 00.05 NancoJtobto. Fees aaF’i WicrW lykti lnn.1 

Noncollattfe. Fungible with outstanding Issue, raising total amount to 1 X5 Milan Ore. Fees not 
avoOaue. (Banque Nalkmale de Pods.) 


6 100X75 

zero 4.975 

Reoflered al 99. NoncaUabte. Fees not avalkwJe. (ING Boilngsj 

Funal ^ wW ’ wwondlng issue, raising total 
ioC9 amount to 5 xwDon rand. Few 0^75%. fTomro- Dominion Bank.) 

May 13 

Canberra: Government unveils bud- 
get for year starting July 1. 

Tokyo: Economic Planning Agency 
reports on regional economies. 
Wellington: Food prices data for 

Earnings: Nintendo. 

Amsterdam: Consumer price index 
for April. 

Berlin: Final consumer prices data 
for April. 

Paris: Final consumer price index 
for April. 

Earnings: Deutsche Telekom. 

Mexico City: Foreign reserves 

Ottawa: Nsw-vehlde sales figures 
for March. 

Washington: Retail sales data for 


Development Bank 

5ft 98ft - 

Semtaiimrally. NoiKalWe private placement. Redemption at maturity wta be In pounds. Aha 6 
bn ton yen paying 5^J0%, to be redeemed Jn dad an. Fees 02O°h. f LTCB Intlj 

5.20 100.00 — 

Semlannuany. Redemption at maturity wiubeki daUars. NmcoliaMe. Fm uisv IDcW 

Equity- Linked 

GVC Carp. 

$150 2002 zero 100.00 — 

United Microelectronics 

$250 2004 0.25 100.00 — 

Wednesday Sydney: Westpac-Melboume Insfr- 
Mav 14 9 tute to Issue consumer sentiment 

y index for May. 

Eamfngs: Westpac Banking. 

London: Unemployment and under- 
lying average earnings data. 
Madrid: Inflation data for April. 
Wiesbaden, Germany: Whoiesafe 
prices data for April. 

Earnings: Cable & Wireless. Novo 

Mexico City: Industrial output data 
for March. 

Ottawa: Agricultural census for 


Washington: Producer price index 
for April and business inventories 
and sales data for March. 

RedmiaMeat 141X964 in 2002 k yield 0.75 aver Treasuries. ConveriWe at TS73.10 per share, 
a premium, and w TJ27.73 par Otaar. Fees??**. iABN-AMHO RattachMJ 

Last Week's Markets Euromarts 

Stock Indexes 

Money Rates 

Eurobond Yields 

Thursday Sydney: Money supply data. 
JSJ?? y Wellington: Unemployment data 
for April; government bond tender 

Frankfurt: Retail sales data for 

Helsinki: Consumer price Index for 

Stockholm: Employment data and 
consumer price Index for April. 
Earnings: British Telecom. 

Ottawa: Consumer price index for 

Rio ds Janeiro: Industrial production 
data for March; coffee crop survey. 
Washington: Consumer price index 
and industrial output and capacity 

utilization data for April. 

unBed Slate 
□J Indus. 
DJ urn. 

DJ Trans. 
Nasdaq Cp 

May2 'VOroe 
7.071 JO *1J9 

220.77 -1.33 

2.60S.B —0.1 a 

795.42 '1X4 

812X1 -1X1 

Prime ra te 
Federal funds rate 

May9 May 2 

5X0 5X0 

g* 9\i 

5 n 5ft 

M0»V Mori True* Trtaw 

Weekly Sales 

Primary Mortal 

UX.& tang lend 
UX.S,mdm term 
UX.S short term 

Pounds sorting 

French francs 

l rollon lira 
Danish kroner 
Swedish Kronor 

9SLO *1X3 

423 04 *1 M 

1X0X94 -2X0 

Call money 
3-monm interbank 

0X0 oxa 

D.43 0,41 

0X4 0X3 



May 16 

Bangkok: Sale of 2 billion baht 
($76.7 million) worth of 1 -month and 
1 billion baht worth of 3 -month notes. 
Taipei: Economic growth rate for 
first quarter. . . . „ 

Wellington: Retail sales data for 


Budapest: Current account data for 

Earnings: Kvaemer, VI AG. 

Caracas: Money supply and foreign 
reserves date. 

Ann Arbor, Michigan: University of 
Michigan to release index of con- 
sumer sentiment for April. 
Washington: Housing starts data 
for April. 

FTSE 100 
TSE Indus. 



Hang Seng 
.’6 SC IP 


riar* base rata 
Can money 

3-mamh Eme rson K 

4^30.90 445540 -3.93 

4‘. 6X0 

njL 600 

Oft Bft 

ECUs, torw term 
ECUs, m dm Term 

Ik 22070 6097.00 

imerveiriton ranj 
Csil money 
3-marnn imereanh 

3.10 3.ia 

3 ^“ Jta 

31t 3'V, 

7.02 7X6 
662 6X0 

642 6X3 

7X5 7X6 
4X5 4.99 
7J9 7.45 
669 5.72 
5X1 5X0 

642 6X3 

5J5 5X0 
4 22 639 
7.43 747 

7X8 7.91 
1.76 1X4 

7X8 6X3 
683 610 
6X0 5.96 
7JS 7.09 
&02 4X6 

7.7B 698 
5.92 5X8 
5X1 4X2 

650 5.96 

S36 478 

651 5.70 

7X6 7.11 
8X9 7.19 
1.94 1X4 

Slralgms 167X 763J ljlex 

ftaf linn 1710 1 4W0X 

-ST. S^?4.0 5X51.4 10.222X 5X419 

Total 8^1 ft 7 6MBJD1Z2173 4TO60 

1633.91 2X55X1 -Ml 

Source; mremoowp stac* mrcnoiufa 

1562.41 1460X7 *2-95 
11930X0 11081.0 *649 

CoH money 
3-monm immank 

4X0 zxo 

3.12 3.1 a 

3.23 3X3 

Total 8^ia7 6MBJD1Z2173 4060 
Secondary MotjcH 

Cvdtl ex — , i — 

* Nam s m 
«ta0W »gX81X T4X82X 82X19,7 22.254X 
Convert. 623X 1.068X 2X92-9 1 iai n 
FRN* 17.9144 MS'S 

ECP 11*15.7 908X18X12X17^-1 
Total 55X35.2 31X60X1511 22J 44XJ0J 
Soweer Eumebar. Cedei Bask. 4 

Ubor Rates 

872.91 847X5 * 3J» London pjn. tlx* 

fran Marfan Stanley Capttoi Inti Fwspecfivp. 

»ot 9 WoyZ'SiOi'Be 
34585 339X5 * 1*3 

1 -month Inman imaalb 

Dwtacnemark 5,* A& ^ V 

P«nd Bofllng 6ft 6ft 4W YmT *ft 

-. ;.:asayai 



Bv Ricburd ^ . Slew 

^5hSgto n rj» 

, ., ars jl< charnnsn of R 

Upuuison as the Gnuffl- M 
Ciliio' failing againsl tsi 

. n d she nation s foil If™ 
? pare Wall Street imilwii 
ttfiiff of ibUsooa 
Greenspan' s 

sn read aefcno» tedgron* 

for prici* siihilitj W 
fouirdaiiCR lof nwre ifeM w 
s:eS dy Jiitf t'.a 

'UniovKictti toic of -4.9 pa 


Bur non e-vrncvnirfs tm < 

dents of the cap: !«*•»* 

offer j rs\is:onisi\ve^ofMi 
snii one that p-unn- nun as 
m h:'s to 

hi* imputation — 

; n -i foar hi* irpuLHion — 
oi'n cabiic sunren* flwr t 
— m ay ^2ce<- 

last ‘.CJT 11*1 pfilKII 

Gr-evpin fcxi prodded the 
sice: vihefo-jr seeping eh#* 
foe r.uK> 5} tost* 
techr.olriirv ir.-.e^^vtgpe nil 

as\‘cTW* foar. 

ig,5:r.kt evir 

.■sn»v jl 

y x lit? 

. i Vir. Ict . c torrk 
\ cr.XTrr.xr: ■-%>«■ ■ \ k J 

13 of Toi 

SEOI.L — T-.i- z-r-' rzr/c 
of the icp •' .r. L :„y-. . 
riorm ;c!i ty roftcr.r 

Dcfa . 7 ’ , i 

■’>- .. .v,t — -J ' S 4i ? 

Fzit T riite t_ - 

thtntfvn c:-» 7— 

Miiiw Wei .. 

-. •' ... J '.i%T 

.GrTinil* ~ 

Li.t?:!:::-. rf - : ;j ;r .r £ . : 


For Com 

— C ORReh| 

Cross Rates 7 

4 *neptftnu 


Mite n 

t «T0 

T «taoto 

i ecu ’ p- rril nos 


Sounasr Lto/ds Bank, Reuters. 



Beyond Development.* 
Rediscovering Nature's Wisdom 

The 2005 World Exposition, Japan 

A ‘VI of WhH, Hdr l CJfn. ^ £r_ 

serf- “If 

■ B Wano*^ 
zv" think T-hI bond inA" V ‘ 

■*«■ *££*“■*'&;* 

- wa **n^\ 

*». -and is headed -n 4 

. d "SSH^ u ' ; ’ ,hc ^ 

April, " S Wi! 

. Th? Pr«a: ;na ^ 

3S mat foe dolb/i'N** 

downtrend !n Em 0 i £*?»* 

power to climb iw&T!,! 1 ?** 

. increase rates [fle fa C 

MONDAY, MAY 12, 1997 

PAGE 11 


















« * 


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Jjimcse. "? ■'**£ 

. n»ajr.Lun foeir C(jr-.>n k- 

staving as home. aTkn i 

"The Tr?j#j ri T . ... 

; penden or f ortf ;: r ' *«}fc. 

rffXjVitfd t l> ‘ -i- ^ ' n Citato- 

• t'-niwa S:a:-V ” \ .'-‘f& e? .*»* 
HSBC M. J >— , J Clift (n 

Bii:X^:k\^n,he: ,j PN , 
-wa- h::'.e ^ 

TicS'U:*. r - . ,n * ^ 

•ptesrok:-. r£ 

- tiirrent : - * W !k:i ™ <Mi this 

■ net fc<-rro v. • - ” •' ‘ ‘ ^ ! "*d 

' •*!».*:« . v »./--V 'f ' ,VJ,d nn » 

• • let -v,.-- .... .; ; -> Cd 

«**.-= r-. !r : -:\s*ZZ*** 

oid - •• -' -P?s>- he 

Greenspan the Grinch? 
Look Again, Experts Say 

Economists Point to Flexibility on Inflation 

By Richard W. Stevenson 

Nf* YoH. rimes Service 

Washington — in nearly t i 

years as chairman of the Federal Re- 
serve. Alan Greenspan has developed a 
reputation as the Grinch. an economic 
killjoy railing against "irrational ex- 
uberance.*’ wiling to sacrifice jobs 
and the nation’s full growth potential 
to spare Wall Street millionaires from 
the merest whiff of inflation. 

Mr. Greenspan’s image has been 
softened only slightly by the wide- 
spread acknowledgment that his quest 
for price stability has provided the 
foundation for more chan six yeans of 
steady expansion and a current un- 
employment rate of 4.9 percent, the 
lowest in 23 years. 

But now economists and other stu- 
dents of the central bank are starting to 
offer a revisionist view of Mr. Green- 
span, one that paints him as far more 
flexible in his approach to fighting 
inflation than his reputation — and his 
own public statements ova- the years 
— may suggest. 

Over the last year in particular. Mr. 
Greenspan has prodded the Fed to con- 
sider whether sweeping changes like 
the huge investments by businesses in 
technology might have given the econ- 
omy greater capacity for noninflation- 
ary growth than conventional theories 
might hold. And as growth surged, 
ebbed and surged again over the last 
year, he held off against considerable 
pressure from colleagues within the 
Fed to raise razes earlier and more 
sharply than the Fed ultimately did 
when it increased rates a quarter of a 
point, to 5.5 percent, on March 25. 

“The image of Akin Greenspan as a 
chairman who cares only about beating 
down inflation no matter what the cost 
in terms of growth and employment is 
wildly at variance with the actions of the 
Federal Reserve under his leadership,” 
said Alan Blinder, a former Fed deputy 
chairman who is now an economics 
professor at Princeton University. 

No one is arguing that Mr. Green- 
span has gone soft on inflation, and the 
long series of rate increases he en- 
gineered in 1994 and early 1995 is 
evidence of his willingness to take 
unpopular action to squelch any threat 
from rising prices. 

indeed, Mr. Greenspan can probably 
afford to be open-minded about the 
nation’s capacity to grow without in- 
flation only because he has built such 
inflation -fighting credibility in the fi- 
nancial markets. 

And the limits of Mr. Greenspan's 
pragmatic approach may be revealed 
on May 20. when the central bank must 
decide whether growth remains so 
strong that it justifies another rate in- 
crease. even chough, as Mr. Greenspan 
himself put it in a speech Thursday 
night. “There is scam evidence of any 
imminent resurgence of inflation." 

But some economists consider it a 
telling sign of Mr. Greenspan’s prag- 
matism that the Fed would even be 
debating whether another rate increase 
is necessary, given that unemployment 
is so low and that growth was 5.6 
percent in the first quarter and 3.S 
percent in the preceding quarter, well 
above what most economists see as die 
economy’s "speed limit” of around 
2.25 percent. 

“He’s no! a monetary theoretician, 
he’s a detail man, and that’s what 
makes him open to this kind of shift." 
said David Jones, chief economist at 
Aubrey G. Lanston & Co., an invest- 
ment firm. "My sense is that he's 
willing to continue this experiment and 
perhaps be more moderate in any tight- 
ening steps he takes and to spread them 
over a longer period of time. " 

As he has surveyed the economy 
over the last few years. Mr. Greenspan 
has expressed doubts about the widely 
held notion that there is a fixed rate of 
employment below which inflation 
will inevitably begin rising. He has 
asked whether official statistics might 
be understating improvements in pro- 
ductivity, a critical component in 

kviAilii p«vTt>- VuhiajTuD R-i 

Alan Greenspan, the Fed chairman, has been given a softer image. 

measuring the economy’s capacity to 
grow without igniting inflation- And he 
has frequently argued that the nation's 
primary inflation gauge, the consumer 
price index, significantly overstates in- 
creases in the cost of living, meaning 
that price pressures could be even more 
quiescent than they appear. 

‘’Greenspan to his credit is trying to 
deal with a world that may have 
changed.” said Mickey Levy, chief 
economist at Nationsbank Capital Mar- 

kets in New York. Even Mr. Green- 
span's well-known unwillingness to 
speak in plain English is giving way to 
new clarity. 

Although he still hedges his bets in 
publicly assessing the likelihood of 
interest rate changes, he has responded 
to congressional criticism that the Fed 
is too secretive by more frequently 
laying out in relatively unambiguous 
terms his view of the economy and his 
rationale for policy shifts. 

Bonn Raises Forecast 
For Unemployment 

Benefit Payouts Jeopardize EMU Entry 


BONN — German)’ said Sunday that 
it was raising its unemployment forecast 
for 1997. an increase ihat tears a hole in 
the government's budget and hurts the 
country's chances of meeting the fiscal 
criteria for the single European cur- 

A spokesman for the Finance Min- 
istry said the government had lifted its 
forecast for average unemployment this 
year by about 120,000 from an earlier 
prediction of 4.1 million. 

He said the government had made a 
number of other revisions, which he 
declined to detail. But he said Germany 
was sticking with its estimate that gross 
domestic product would rise by 2.5 per- 
cent this year. 

"We have raised the unemployment 
forecast for the full year because of the 
current job market conditions.” the 
spokesman said. He declined to com- 
ment on a report Sunday that first- 
quarter tax revenue would be far below 

The government is to receive a report 
Thursday detailing first-quarter tax rev- 

The newspaper Welt am Sonntag re- 
ported that tax shortfalls to be an- 
nounced in die report would blow a 20 
billion Deutsche mark ($11.76 billion) 
hole in Finance Minister Theo Wai gel’s 
1997 budget. 

"It doesn’t make any sense to spec- 
ulate about these figures beforehand," 
the ministry spokesman said. 

The opposition Social Democratic 
Party has been saying that the 1997 
deficit would be 20 billion DM larger 
than Mr. Waigel had predicted because 
of falling tax revenues and the higher 

Mr. Waigel said late last month that 

the shortfall could be 10 billion DM 
larger than expected but would “def- 
initely not” be as high as the Social 
Democrats’ estimate. 

Welt am Sonntag quoted Finance 
Ministry sources as saying that high 
unemployment and weak consumer de- 
mand had led to the gloomy budget 

“It could be 20 billion DM plus who 
knows how much." the newspaper 
quoted one ministry source as saying. 

Mr. Kohl, who has been counting on a 
decline in unemployment from its post- 
war high this year, admitted last week 
that he saw no* turnaround in the rising 
jobless trend this year. 

"This year will not bring a change in 
the trend for the labor market, especially 
not as high as I would wish," Mr. Kohl 
said. But he said the government still 
aimed to halve unemployment by 2000. 

"It is our goal.” be said. “I cannot 
say whether it will be reached. ” . 

The number of unemployed fell by 
130,000 in April from March, to 4347 
million, a rate of 1 1.3 percent. But the 
jobless total was still 490,000 higher 
than a year earlier. Stripping out sea- 
sonal factors, unemployment rolls grew 
by 8.000. 

Containing unemployment is a key 
factor in Germany’s bid to cut state 
borrowing this year to qualify for Euro- 
pean monetary union, which is sched- 
uled to stan in 1999. 

Government projections, which fore- 
see cutting the fiscal deficit below die 
Maastricht treaty limit of 3 percent of 
gross domestic product, assume average 
joblessness of 4.1 milli on in 1997. 

But unemployment far above that 
level so far this year has already blown 
the Federal Labor Office's jobless ben- 
efits budget for the entire year. 

Rich German States Pursue 
Protection From EU Penalties 

13 of Top 30 Korean Chaebol Report a Loss for 1996 

-■ v ^ ro:r* 




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CmfttedtrvOm Staff Fnjm D u p ax ha 

SEOUL — The combined net profits 
of the top 30 industrial groups in South 
Korea fell by 96 percent in the year 
ended Dec. 3 1 , battered by an economic 
slowdown that eroded earnings, accord- 
ing to figures released Sunday by the 
Fair Trade Commission. 

Thirteen of the industrial giants pos- 
ted a loss for the year, as the combined 
net profits by the 30 groups dove to 354 
billion won ($396.4 million) last year 
from 8.46 trillion won a year earlier, die 
commission said. 

Liabilities of the conglomerates rose 

to 347.82 trillion won last year from 
272.95 trillion in 1995, while the equi ty- 
ro- asset ratio fell to 18.2 percent from 
20-5 percent a year earlier. 

The top 30 industrial groups, or chae- 
bol, account for more than half die coun- 
try’s total domestic output. 

The 13 that lost money were: Ssang- 
yong. Hanjin, Kia, Hanwha, Kumho, 
Doosan. Hansel, Jinro, Dongbu, Hand, 
Keo Pyung, Mi won and Shinho. 

The chaebol were bit by mounting 
debts and the slowest economic growth 
in four years. The government expects 
the economy to grow less than 6 percent 

this year, against 7.1 percent last year 
and 8.9 percent in 1 995. 

The Hanbo and Sammi groups col- 
lapsed this year under debts of $83 
billion. Creditor banks of Jinro group 
bailed out the country's 19th-biggest 
chaebol last month. 

Total net profits of the 30 chaebol 
accounted for only 0.17 percent of their 
total sales, according to their 1996 fi- 
nancial statements reported to the com- 

LG Group, the nation’s third-large st 
chaebol, posted the largest net profit — 

360 billion won on sales of 46.67 trillion Sunday. 

won. Daewoo, the fourfo-biggest chae- 
bol, posted net profit of 329 billion won; 
Sunkyong, 290 billion; Hyundai, 179 
billion won; and Samsung, 129 billion 

Lotte. Dong Kook Steel Co., Dongbu. 
Samsung, Hansol and Tongyang were 
among the most financially healthy 
chaebol, the commission said. 

Meanwhile, the combined pretax 
losses posted by South Korean securities 
houses narrowed by 14 percent, to 509. 1 
billion won, in die year ended March. 

Supervisory Board said 
(Bloomberg, Reuters) 


BONN — Several prosperous Ger- 
man states want to make sure they will 
not have to pay for sanctions that would 
be levied on any European country using 
the single currency that fails to keep its 
deficit and debts within agreed limits, 
according to a report published Sunday. 

The newsmagazine Der Spiegel said 
several states, such as Hesse, Bavaria, 
Baden-Wueroembexg and North Rhine- 
Westphalia. want to ensure that should 
Germany exceed the deficit limits after 
the currency is introduced, those re- 
sponsible would pay for the sanctions. 

The magazine said that the states want 
the federal Finance Ministry to be held 
responsible for the sanctions. Currently, 
the states and the federal government 
would share the costs of the penalties, 
regardless of who is to blame. 

Prosperous German states already 

support poorer states and would be re- 
quired to make a greater contribution to 
the sanction payments. Many of the 
wealthier stares already complain that 
the poorer states are not tackling their 
deficits with enough energy. 

"We want to help.” said the Hesse 
state finance minister, Karl Starzacher, 
"but it isn’t right if those who fulfill the 
Maastricht criteria and reduce their debts 
are punished because others don't" 

Hesse is trying to draft legislation that 
would require those states whose def- 
icits exceed debt limits to pay a larger 
share of the sanctions. 

At the European Union summit meet- . 
ing in Dublin in December, leaders 
agreed on a stability pact to impose 
restraints on budget deficits as they 
completed the technical preparations for 
the debut of the single currency, the 
euro, in 1999. 


For Computer Fanatics, Deep Blue Is Favorite 

By Rajiv 

Washington Post Service 

Newsome’s friends and fam- 
. fly — and, he figures, most of 
the sentient world — are 
" cheering for the human side 
in the chess match between 
the world champion, Garry 
Kasparov, and an IBM com- 
puter called Deep Blue. 

“They see it as this great 
m a n versus machine battle, 
this fight to defend human- 
ity," said the engineering 
student at Carnegie Mellon 
■ University in Pittsburgh- 

But not Mr. Newsome. 
He’s -rooting for the ma- 

“There’s nothing wrong 
with a powerful computer." 
argued Mr. Newsome, 19. 
Such machines, be said, 
“when taken far enough, can 
outdo human intuition.” 
People "need to realize 
they’re not the best at 

In universities, research 
labs and offices around the 
world, a small but dedicated 
cadre of computer lovers has 
been discreetly backing Deep 
Blue this week, often sitting 
in front of personal com- 
puters for hours to follow the 
action over the Internet For 
this crowd, the thought of a 
Deep Blue victory would be 
sweet affirmation of their 
daily efforts to design faster. 

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better, “smarter” com- 

“There’s no reason to lose 
pride over this." contended 
Gary Kafeh, 41, a computer 
networking analyst in 
Montreal "I take no um- 
brage that a pocket calculator 
can do math better than me. I 
just see chess as one huge 
math problem that’s been be- 
yond the scope of computers 
until now.” 

Whether that’s actually 
true won’t be known until 
late Sunday, when Mr. Kas- 
parov and Deep Blue play the 
last of their six scheduled 
games. Mr. Kasparov won 
toe first game, the computer 
took the second, while the 
third, fourth and fifth games 
ended in draws. The winner 
of the $1.1 million match, 
which is being held in New 
York, gets $700,000. 

Last February, a less 
powerful version of Deep 
Blue bear Mr. Kasparov in 
their first game, piquing the 
interest of computer scient- 

ists worldwide. The super- 
computer, however, went on 
to lose or tie the remaining 
games in that match. 

With 286 microprocessors 
and scores of memory chips 
sitting in a massive, 1.4-ton 
box. Deep Blue makes many 
a computer geek drooL To 
top it off, foe computer’s 
software — which uses com- 
plex mathematical equations ing is 
to evaluate 200 million po- softw; 
sitions each second — also is 
something foal fascinates 
techies. For decades, design- 
ing a device that could beat a 
chess grandmaster has been a 
sort of Holy Grail of foe com- 
puter world. 

"I can’t even imagine how 
difficult it is to do something 
like this." said David Betz, 

32, a medical student at foe 
University of California at 
Davis, who tried to write a 
chess-playing computer pro- 
gram after graduating from 
high school. ‘ 'Getting a com- 
puter to out-whip a human is 
no simple feat. It would be a 

greai accomplishment.” 

If the computer loses, it 
could mean its software was 
not up to snuff — something 
no self-respecting program- 
mer would wish for. To 
some, Mr. Kasparov is foe 
ultimate "debugger,” a 
hired gun looking tor flaws, 
or bugs, in the software. 

“What's he’s actually do- 
ing is testing the work of the 
software engineers,” said 
Kevin Anderson, 34. a pro- 
grammer for a telecommu- 
nications firm who lives in 
Silver Spring, Maryland. “If 
Kasparov wins, ihen it was an 
"Oops, we didn't .do it 
right' " 

But Mr. Betz and others 
rooting for the computer also 
hope Deep Blue will teach 
humankind a thing or two. 

A supercomputer victory 
would represent yet another 
assault on humanity's arrog- 
ant belief in its own suprem- 
acy,” Mr. Betz said. 

Internet address: 

Chips Are Flawed, Intel Concedes 

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Cc*V$cd by StoffFm Dhpachrs 

SANTA CLARA, California— Intel Corp. 
has confinned that there is a flaw in its 
Pentium Pro and Pentium D chips, and the 
company is offering software that corrects the 
bug. ’ . 

The flaw causes incorrect identification of 
some computations when doing advanced 
math. It is similar to the flaw found in the 
Pentium chips in 1994 that cost the company 
$475 million for replacements. 

Intel will not need to recall the flawed 
chips, foe company said, adding that it would 
start shipping revised versions of foe chip that 
do not have foe flaw in about six months. 

Pentium n is a Pentium Pro chip with 
added multimedia features and was intro- 
duced last week. 

Intel also said it would help software de- 
velopers rewrite programs to compensate for 
the error when it does come up. 

Flaws in a microprocessor, the brains in a 
personal computer, are relatively common, 
and Intel routinely identifies them and works 
with software companies and its own design 
teams to correct foe problems. The chip man- 
ufacturing process incorporates foe fixes into 
new designs. 

Information about die flaw and the soft- 
ware to fix it is available on the Web site 

International Business Machines Corp. 
said the flaw should not have any major 
impact on its PC customers. 

“We currently have no information to be- 
lieve that this reported anomaly will have a 
major impact on our customers," said a 
spokesman for IBM PC Co. 

Intel said it would fix foe defect in the new 
chips if makes. Investors shrugged off foe 
flaw, as Intel shares rose 75 cents to $159.50 
on Friday. (Bloomberg, Reuters) 


Michael ! 

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OMEGA congratulates its ambassador Michael Schumacher for his superb victory. 
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High Costs 
And Imports 
Hurt China 

BhHtnifrtrt .Yin * 

BEU1NG — These should be the best 
of limes for steelmakers in China, which 
Iasi year displaced Japan as the world's 
biggest steel producer. 

China s industrial production contin- 
ues to steam ahead, growing at an an- 
nual rate of more than 1 1 percent in the 
year to April. The government's plan to 
invest more than Si 00 billion in hous- 
ing. bridges and railroads by 2000 
should also stoke demand for steel. 

instead, most Chinese steel compa- 
nies are losing money, hammered by 
cheap imports from the former Soviet 
Union ana prices for coal and other raw 
materials, which went up bv more than 
10 percent in China Iasi year. 

“It's a contradiction." said Zu Xue- 
chao. director of the international trade 
department of Baoshan Iron & Steel 
Group. “World steel prices are rising; 
but in China, they’re falling.'* 
in January, the 873 Chinese steel 
companies lost a total of 341 million yuan 
i *+1.0 million), the Ministry of Metal- 
lurgical Industry said. Last year, when 
China produced 10U-2 million tons and 
Japan 98.77 million. Chinese producers 
operated at a profit, but those earnings 
were down about 70 percent. Chinese 
imports of rolled steel rose 14.5 percent in 
1996, to 16 million tons, compared whh 
1995, while rolled-steel exports slumped 
29 percent, to 1.71 million tons. 

"The prices the iron and steel makers 
are getting are not sufficient, so they 
can't invest in new equipment." said 
Hermann Gartinger, general manager of 
Demag Metal Plant Technology Ltd., a 
joint venture of Baoshan and Mannes- 
man AG. Baoshan '5 cold-rolled steel 
plant in Shanghai sells coiled products 
for about $400 a ton. compared with 
about $330 a ton for similar quality from 
Russia and Kazakstan, he said. 

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The World According to Host Bill Gates 

By Carey Goldberg 

Ni w l.iri /impi .Vrnu r 

SEATTLE — Bill Gates, the 
richest man in America and con- 
sidered by some the most 
important man in the world, 
has put in his bid to become 
the host with the most — 
the most ability to pack the 
must chief executives and 
political heavyweights into 
one party of his creation. 

The Microsoft Corp. 

"CEO Summit," held here 
Thursday and Friday, drew 
Vice President A1 Gore; fcjfTi 
Steve Forbes; Reed Hunch. 
chairman of the Federal ||| f 
Communications Comm is- Vgf 
sion, and more than 100 fgF 
other VIPs from 25 coun- gv 
tries and a constellation of PP 
businesses and industries. 

The gathering featured a Bill 
dinner Thursday at Mr. 

Gates's futuristic mansion-in- 
progress on Lake Washington 

what should be the dimension of 
the CEO’s competence in know- 
ing enough about technology to 
deal with how to integrate tcch- 
nology into the organization." 

But in practice, the conference 

Leonardo da Vinci and volumin- 
ous papers of Napoleon. 

The house. Mr. Hazen said, is 
so full of beautiful wood and de- 
tail that those touches seemed to 
upstage such high-tech features as 

UiiJir llpirnim") 'Pb- At — k iJ»*1 

Bill Gates, left, introducing Vice President Gore to the gathering in Seattle. 

Gates’s futuristic mansion-in- provided participants and distant 
progress on Lake Washington observers a new glimpse at a sub- 
thut brought a buzzing pack of J^ 1 °f endless fascination: the 
maritime onlookers by boat and w orld according to Gates. 

Jet Ski. Guests arrived by cruise 

The formal purpose of the con- 
ference. Microsoft officials said, 
was to explore how technology is 
changing the world of business 

Guests loured the offices of Mi- 
crosoft, rhe company that Mr. 
Gates co-foundcd in 1 975 and that 
earned more than $2 billion in 
1996. Even better, they got a rare 
inside look at Mr. Gates's techno- 

and to share Mr. Gates's vision of m ansion. designed in many ways 

the (inure. 

Paul Hazen. chief executive of 
Wells Fargo & Co., said; “There 
was a common search for just 

as the house of the future. 

One guest said Mr. Gates had 
given a "tour of his library’, which 
includes a famous notebook by 

the huge video screen that took up 
a full wall in the dining room. 

In his speech. Mr. Gates ba- 
sically covered ground that he had 
already set out in his best-selling 
book, "The Road Ahead." He 
warned that people tend to focus 
too much on how technology will 
change in two years and not 
enough on how it will change in 
10, and he spoke of a need for 
companies to create systems that 
transmit information so quickly 
that they are like “digital nervous 

If there was one particularly 
intriguing aspect to the gathering, 
it was the guest list, which was 
supposed to be secret but was 
posted by Hotwired, the on-line 
offshoot of Wired 
magazine. The list in- 
cluded no one from Inter- 
national Business Ma- 
chines Corp.. for example; 
Ford Motor Co. was rep- 
resented but not General 
Motor* Corp. or Chry sler 
Corp. Many of the omis- 
sions or inclusions could be 
explained by the enmities 
and alliances of Mi- 

Technology companies 
were heavily represented, 
but it was nonetheless 
somewhat surprising when 
Mr. Gore welcomed the 
presence of General Ken- 
tttle. neth Minihan. head of the 

National Security Agency, 
the supersecret government 

eavesdropping service. 

Mr. Gore told the conference 
how “two changes, globalization 
and the revolution in information 
technology, have combined to 
create a new age with an entirely 
new business reality." 

Both Mr. Gore and Mr. Gates 
struck a positive chord; that 
among the effects of changing 
technology was a great new value 
placed on workers themselves, 
the human capital without which 
the technology is worthless. 

PAGE 13 


Hong Kong Dollar’s Peg to Remain 

FUKUOKA. Japan (IHT) — The chief of the Hong Kong 
Monetary Authority. Joseph Yarn, said Sunday that the Hong 
Kong dollar would remain pegged to the U.S. dollar after the 
British colony reverts to Chinese sovereignty July 1 . 

"Fixed rates are here to stay.*’ Mr. Yam said. One U-J- 
dollar now equals 7.80 Hong Kong dollars. "We are not 100 
percent sure." he said. "We are 600 percent sure." 

Moreover. Mr. Yam said. Beijing will have no influence 
over Hong Kong's $60 billion to $70 billion in currency 

Separately, in meetings on the sidelines of the Asian De- 
velopment Bank's annual meeting, the governor of the Chinese 
central bank. Dai Xiang, stressed Beijing's determination to 
protect Hong Kong's stature as a major financial center. 

SAP to Curtail Trading by Workers 

BONN (Reuters) — SAP AG. the software company em- 
broiled in an insider trading investigation, plans to curb 
trading in its shares by its own employees, the German weekly 
magazine Focus reported in its weekend issue. 

"We want to put all employees under the obligation not to 
trade in SAP shares in the dangerous three weeks at the end of 
each quarter." SAP's chief executive Dietmar Hopp told 
Focus. Mr. Hopp said anyone who broke the rule, which also 
covered top-ranking employees, could be fired. 

Bonn Fines Cable Firms Over Prices 

BERLIN (Bloomberg) — The German Federal Cartel Office 
has imposed a record price-fixing fine of 260 million Deutsche 
marks IS 152.8 million) on a group of electric-cable makers. 

The companies include the German unit of Alcatel Alsthom 
of France and a subsidiary of Siemens AG. Germany's largest 
electronics company, the all-news television channel N-TV 

U.K. Post Privatization Ruled Out 

LONDON (Reuters) — The new British industry secretary, 
Margaret Beckett, ruled out on Sunday any privatization of the 
postal system. 

Ms. Beckett, who is president of the Board of Trade, said 
selling the post office "fails the public interest test." 

Cellular Phone Stocks Get a Second Look I 400 Layoffs Loom at Busang 

By Sana Siwolop 

New York Timex Service 

NEW YORK — Cellular telephone stocks 
used to be market darlings, but for the last few 
years they have been causing many investors to 
hang up and call elsewhere. 

Granted, the industry had U.S. sales totaling 
$24 billion last year and increased its number of 
customers by 30 percent. But as the industry has 
become more competitive, price-cutting is re- 
ducing average customer revenue. 

The industry is also threatened by personal 
communications services, or PCS. which are 
similar to cellular services but are transmitted at 
a higher radio frequency. While PCS providers 
are not expected to generate profits for at least 
four to six years, their pocket-sized devices hold 
the promise of delivering digital phone service 
as well as data, fax and messaging. . 

But these trends may have pushed cellular 
stocks down too far. Generally, like the shares 
of other fast-growing companies, cellular-ser- 

vice companies trade at premiums to the mar- 
ket But many analysts say they are 20 percent 
to 50 percent below where they should be. 

"The pendulum has swung too much in the 
other direction," said Gregory McCrickard, 
manager of the T. Rowe Price OTC fund. One 


stock he likes. Western Wireless Corp., finished 
Friday at $11.00, near its 52-week low of 

Good cellular operators to explore, many 
analysts say, are the relatively small ones that 
have seen their stock prices plummet even 
though they are somewhat shielded from the 
general pressures affecting the industry. 

These include companies that conduct much 
business abroad, where demand is generally 
growing faster and price-cutting pressures are 
thus less strong. They also include companies 
that focus on rural and suburban markets, which 
PCS companies are bypassing to turn their sights 

on the large cellular players in major cities. 

AirTouch Communications Inc„ which was 
spun off from Pacific Telesis Group in 1994. is 
one such company. In mid-April. AirTouch an- 
nounced along-awaited, S5 billion deal to buy the 
cellular business of the U S West Media Group. 

While AirTouch has many customers in large 
urban U.S. markets, it also has a significant 
international presence. 

Mr. McCrickard notes that Western Wireless, 
which also holds a number of PCS licenses, has 
acellular presence in 57 rural areas, particularly 
in such western states as Idaho and Montana. 
He said the rural sector was promising because 
of its less competitive nature. 

Of course, price cuts and growing compe- 
tition from a different technology are never 
happy news; investors should expect cellular 
stocks faced with such problems to fall to some 
extent. But the price cuts may turn into a 
blessing, said Kevin Condon of Bankers Trust 
Securities, because they will eventually lure 
more cellular customers. 




hv Oir- Sxtf Frrm DafkMhrf 

JAKARTA — About 400 people reportedly will be 
dismissed this week at the Busang gold project in In- 
donesia. where claims to have found the richest gold 
deposit this century were found last week to have been 
massive hoax. 

“We received confirmation three days ago regarding 
their layoff, which is to be done on May 15." the head of 
administration at Bre-X Minerals Ltd. in Busang was 
quoted as saying by the official Antara news agency. 

Bre-5C based in Calgary, Alberta, filed for protection 
from creditors Thursday, four days after an analysis 
found thai its Indonesian gold claim was worthless. 

The Canadian trade minister. Art Eggleton. discussed 
the Bre-X affair over the weekend with his Indonesian 
counterpart, Tunky Ariwibowo. The ministers were at- 
tending a meeting of the 18-member Asia-Pacific Eco- 
nomic Cooperation forum. 

The two countries “both want to get to die bottom of 
what happened and find out all the details with respect to 
Bre-X." Mr. Eggleton said. His remarks were echoed by 
Mr. Tunky, who described the affair as a one-time incident 
that would not hinder bilateral ties. (AFP. Bloomberg) 

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PAGE 16 



In a Comeback, Pierce 
Takes the Italian Open 

Sidelined by an Injury, Martinez Fails 
In Bid for Her 5th Consecutive Victory 

CaipBeil by Our Satf Fnm Dufvtckes 

ROME — Mary Pierce thwarted 
Con chita Martinez's bid for a fifth con- 
secudve Italian Open title Sunday, beat- 
ing the Spaniard in straight sets, 6-4, 6- 
0, in the clay-court tournament. 

Pierce, who had knocked out the top 
seed, Monica Seles, earlier in the week, 
, made few mistakes and used her power- 
ful grounds trokes to good effect against 
.an opponent hampered by injury. 

Martinez, who had won tins tour- 
nament every year since 1993, needed 
-physiotherapy for a muscle problem 
■ around the nape of her neck and her right 
shoulder blade. 

She nevertheless played the doubles 
final with Patricia Tarabhu of Argentina 
later in the day. They lost. 6-2, 6-4, to 
Nicole Arendt of the United States and 
Manon Bollegraf of the Netherlands. 

It was Pierce's first tournament vic- 
tory in two years. 

“But it was easier than I expected, I 
think because she got a little bit hurt.'’ 
Pierce said. “It was kind of weird." 

Martinez first received treatment in 
■the fifth game. She had managed to 
break for a 3-2 lead when Pierce sent a 
forehand wide. Martinez surrendered 
her own service in the following game 
when she netted a backhand, and slipped 
again to trail 3-5. 

Pierce netted an easy slice at point- 
blank range for 4-5, but she broke back 
immediately to seal the set when Mar- 
tinez drove a barreling forehand straight 
into the net 

In die second set, Martinez was un- 

able to move or strike the ball with any 
power or conviction, allowing the 10th 
seed to seal the match after 70 minutes. 

In men’s tennis, Andrei Medvedev 
demolished 1 Oth-seeded Felix Mantilla, 
6-0, 6-4, 6-2. in less than 90 minutes 
Sunday to take the German Open title 
for the third time in four years. 

The unseeded Medvedev’s surpris- 
ingly one-sided victory was his fourth in 
five matches against a seeded player. 

The thunderous power of Medve- 
dev's first serve and forehand drive, the 
creativity of his drop shots and his ima- 
ginative forays to the net proved too 
much for Mantilla. 

It was the first ATP Super Nine tour- 
nament final for the Spaniard, and he 
was quickly overwhelmed. 

Medvedev, ranked 38th in the world, 
took the first set in just 17 minutes. It 
took 41 minutes for the dogged Mantilla 
to win his first game. 

Of the second set, Medvedev said: 
“The crucial game was that one at 5-4. 
It was easier for me after that because I 
felt I finally had the mental edge.’ ’ 

The Ukrainian was in charge again 
throughout the third set. (AP, Reuters) 

Sweden Nips Canada 
To Lead Series, 1-0 


The Associated Press 

HELSINKI — Rallying from a one- 
goal deficit, Sweden beat Canada. 3-2, 
on Sunday to take a 1-0 lead in the finals 
of the World Hockey Championships. 

The best-of-three series for the gold 
medal continues Tuesday, with a third 
game, if necessary, to be played Wed- 

The two countries met in the 1994 

Burke left the net wide open by feUrng - 

forward after saving a breakaway Shot.- . 

Seconds after that goal, a brawl broke 
out that resulted in the ejection of Cory 

Cross of Canada. _ 

Canada pulled its goalie for an extra 
niaver with 60 seconds remaining in the 

Olympic final , when a penalty shoot-out 
in overtime gave Sweden a 3-2 victory 
•and the gold medaL 

On Sunday, Canada and Sweden 

Canada pulled its goalie for an extra 
player with 60 seconds remammg in the 
£arae, and the gamble paid off as Anson 
Outer of the Boston Bruins deflected a 
long-range shot between Safe's pads, 
narrowing Sweden’s lead to 3-2. : . 

_ * _ ^ j-J nUifino nJithrait 

continued playing without 
«rt#» but failed to score in the frantic 

traded a pair of power-play goals in the 
opening period. First, Mark Recchi of 

Rod BUha/The AnociaKd Plea 

Players on Sweden’s national team congratulating each other after 
scoring their third goal of the game Sunday against Canada in Helsinki 

opening period. First, Mark Recchi of 
the Montreal Canadians banged a blue- 
line slapshot into the lower right side of 
the net past Sweden's goalie. Tommy 
Salo, at 10:54. 

A minute and 23 seconds later, 
Sweden tied the game when Jonas Ho- 
glund picked up a rebound from the 
pads of Canada's goalie, Sean Burke, 
and fired a shot from the right face-off 
circle into foe net. 

Sweden took a 2-1 lead on a power- 
play breakaway by Niklas Sundblad at 
15:47 of the middle period. Sundblad 
received a perfect cross-ice feed from 
Marcus Ragnarsson, who had intercep- 
ted a Canada pass in his defensive zone. 

At 16:05 of foe final period, Marcus 
Thuresson knocked in a rebound after 

Crespo Keeps Parma on Course for the Showdown 

Burke, but failed to score in the frantic 
last seconds of foe match. ■ 

“Defensively, we played a perfect ; : 
game,” said Kent Forsbexg, Sweden s 
coach * ‘We can win the championships 
on Tuesday.” 

r , inaHfl [ seeking its 21st world title, 
was at full strength Sunday with the 
return of Owen Nolan and Shean 
Donovan who had received one-game 
suspensions for their roles in a brawl 
during a game against the Czech Re-' - 
public. ’ . . m 

Sweden beat Canada, 7-2, in round- 
robin play earlier in the tournament. 

Canada's coach, Andy Murray, said, 
“Sweden has been the best ream at the : 
tournament, and one has to play much 
better to beat them.” He added that .his - 
team’s plane tickets were reserved for-.: 
Thursday and “we are not changing 
that. " 

The Czech team won the bronze medal 
Saturday by edging Russia, 4-3, on a goal 
by Jiri Dopita with 1:50 remaining. The 
Czechs won the title last year. 

Mctad Praba/Ihs Anoaaed Ren 

■ Andrei Medvedev savoring his vic- 
tory Sunday against Felix Mantilla. 

CosgvW by Our Stef! From DUpetekts 

Heman Crespo scored all three goals 
as Parma beat Vicenza, 3-0, Sunday, to 
remain four points behind Inventus of 
Turin in Italy’s Serie A with four 
games to play. 

Juventus continued its 1 ale-season 
straggles but scored a goal late in each 
half for a difficult 2-0 victory at next- 
to-last Verona. 

The top two ebbs clash in Turin 
□ext Sunday. 

Crespo raised his tally to 10 goals in 
his last nine games. The Argentine 
turned in midfielder Massimo Crippa’s 
cross in die 15th minute, sent a diving 
header just under foe crossbar in the 
56th. and finished off a brilliant in- 
dividual run five minutes, later. 
Parma’s defense took care of the rest, 
recording its league-high 18fo shutout 
of the year. 

In Verona, central defender Ciro 
Ferrara's firm header gave Juventus 
foe lead in foe 44th minute, ending 
Verona's four-match shutout streak. 
Yugoslav midfielder ValdimirJogovic 
sealed the victory s with a free kick in 
second-half injury time. 

At die other end of the standings, 
Reggiana lost to AC Milan, 3-1, and 
became the first team assured of re- 
legation to the second division. Reg- 

giana returns to Serie B after one sea- 
son in the top flight 
Elsewhere, Manrizio Ganz came off 
foe substitutes' beach to score twice, 
rallying Intemazionale of Milan to a 2- 

1 win at Sampdoria of Genoa. Inter 
stayed in third place, while Sampdoria 
slipped in foe race for UEFA Cup 

NETHERLANDS PSV Eindhoven re- 
mained on trade for its 14th Dutch 
league title with a hard-fought 1 -0 vic- 
tory Sunday at FC Groningen. 

Second-placed Feyenoord Rotter- 
dam conceded a late goal at home toFC 
Twerite Enschede' to draw 1-1 and 
slipped four points behind PSV with 
threematches remaining. 

Defender Stab Valckx’s 56th 
minute strike took! PSV to victory at 
Groningen and guaranteed foe Eind- 
hoven a top-two finish and a place in 
foe Champions League next season. 

FRANCE Goalkeeper Bruno Valen- 
cony was Nice's hero with two penalty 
saves as it beat Guingamp, 4-3, in a 
shooljout to win foe French Cup.for the 
third jtime. 

The last soccer-final at (he Pare des 
Princes ended in a 1-1 draw after extra 


Nice, relegated from foe first di- 
vision, will play in the European Cup 
Winners’ Cup as a second division side 
next season. 

Nice also won the cup in 1952 and 
1954 and were losing finalists in 

Valencony saved Guin gamp’s first 
penalty from Stqphane Carnot, foe sub- 
stitute who had brought his side back 
into the match in the second half with 
his deft promptings from midfield and 
dangerous free kicks and comers. 

After defender Luis Gomis shot 
Nice’s fourth penalty over foe bar, 
Valencony saved again from Claude 
Michel and Dutchman Aijan Vermeu- 
len sealed victory by convening the 
last spot kick. 

Earlier, Nice opened the scaring 
after its first deep incursion into 
Guingamp territory m foe 21st minute. 
Defender Youssef Salimi rose to head 
home a comer taken by midfielder 
Thierry de Neef. 

Guingamp, playing in its first final, 
equalized 13 minutes from time 
through defender Nicolas Laspalles, 
one of their best players, who broke 
past the defense to beat Valencony 
with a fierce shot after Nice failed to 
clear a free kick by Carnot 

Scotland Glasgow Rangers ended 
its Scottish premier division season in 
defeat on Saturday, three days after 
securing its ninth consecutive league 

The champion lost, 3-1, to Hearts in 

All the goals came in the last 10 
minutes, Colin Cameron putting 
Hearts ahead in foe 80th before Derek 
Mclrmes equalized 60 seconds later. 

John Robertson then swung the 
match Hearts* way by scoring from a 
penalty in foe 82d minute and adding 
his second goal in the 86th. 

Rangers finish ed the premier divi- 
sion program five points clear of run- 
ners-up and city arch-rivals Celtic who 
beat Dundee United, 3-0. 

GREECE Olympiakos Piraeus beat 
AEK Athens, 2-0, to clinch the Greek 
first division title for the first time in 
after 10 years. Willi only two games 
left, Olympiakos holds a 12-point lead 
over AEK. 

Alecos Alexandras gave 
Olympiakos the lead m the 12fo 
minute. After 25 minutes goalie Bias 
Atmatadis downed Vassilis Karapial- 
is in the penalty area. Atmazidis was 
sent off and Serbian midfielder Pre- 
drak Ciorcevic converted the penalty 
to put Olympiakos up 2-0. 

Resting Devils 
Get Good News 

Con^Urd tif O&SuffFrm Dapasrhn 

After the misfortune of having three 

S disallowed and a cross-check to 
Gilmour by Mark Messier go un- 
Lzed, the Devils got their first big 
break in their series With the Rangers — £■. 
on a day when no games were played 
The National Hodcey League told foe 
Devils on Saturday that John MacLean 
would not be suspended for breaking 
Niklas Sundstronrs left arm with a two- . 
handed stick slash in minutes of 
Game 4 on Thursday night 
Brian Burke, foe league’s senior vice 
president in charge of discipline, said the 
incident had not been adequately cap- 
tured on videotape. 

The Stanley Cup semifinals resumed 

, entertained the Edmonton Oilers. 

| In Friday games, Ed Ronan scored 

6:24 into overtime as foe Sabres beat the 
Flyers 5-4 to avoid a four-game sweep. 
In Edmonton, Claude Lemieux scored 
his ninth playoff goal 8:35 into overtime 
as Colorado beat Edmonton 5-4 to take a 
3-1 series lead. (NYT. AP) 



Major League Standings 











New York 




3V 4 
















carnuu. division 











Kansas Ctty 

























































New York 





















5t Louts 










Chico go 











San Francisco 20 




Las Angeles 





San Diego 





HRs— dev. Ma.Wfflknns (8), Justice (12). 
TUBS 000 040 100—4 100 

Boston 010 000 000-1 52 

Witt and L Rodrtgusz: Wasdln, Lacy (5). 
Garces (8), Slocumb (9) and Hodman. 
W— Writ, 6-0. L— Wasdln, o-l. 

SeaTtle . 210 301 001-0 14 0 

Baltimore 000 010 100-0 7 0 

Mayer. 5. Sanders C7J, McCarthy (8). Ayala 

(7) and Maizmtu Coppfnger, Rhodes (4), 
MUahnson (6), Boskle 0) and HaOes. 
W— Moyer, 2-a L— CoppJnger, 1-1. 
HRs— Seattle, Coro CO, Griffey Jr. (15). 
BaWmore, Surtxrif CD. 

Tomato 020 00T 100—4 0 1 

Minnesota 000 IN 000-1 6 2 

Hentgen, Timlin (9) and SanOagcs 
F.Rodriguez, Trombley (7) and Stetaboch- 
W— Hentgen. 3-1. L-F. Rodriguez, l-l 
Sv — Timlin CD, 

Ana beta IN IN 020-4 12 0 

Min™**? 200 in 20*-S a 0 

Hasegawa, DeLuda (7), McEboy (8) and 
Leyritz; EJdretL Wtcfamm (8), DaJones (91 
and Mntheny. W— Eldred. 4a 

L — Hasegawa. 1-2 Sv— Do-fanes 0). 
HRs— Anaheim, Leyffiz 15), Salman IS). 

Oaktand HI OH 010 0-2 7 1 

Chicago ON 002 ON 1-3 11 1 

Prieto. Groom (8), A. Small (8) and Moyne, 
GaWtUams IB); Navarra Levine (BO. 
T-Castao (8). R. Hernandez (9) and Pena. 
Kretrter C9J. W-R. Hernandez, 2-1. L—A. 
Small. 4-1. HR— Oakland, Splozlo (5). 
KaasasdTy 600 003 020 002—7 » 1 
New York 101 IN 2M 000-5 12 2 
Rusch, J. Walker (7), JJtiarrtgomery (9), 
Pkttardo 00). R. Veres HI) and 
MLSweemy. Sector (9); KnJtogers. Nefcon 

(8) , Boehrbiger (10), Stanton 03 and 
GtrurdL W— R. Veres. 2-0- L — BoetBlngec 1- 
2 HRs— Kansas CBy. King (5). New York. 
Jeter (4). 

A Onto ON ON 000-0 7 3 

Pittsburgh 0Z1 210 ON-9 12 I 

Watte Emtoree (71, Qanfc (B) and J. Lapse 

F. Corriava and KendaH. W— Cordova 2-3. 

L— Wade, 1-2 HR— Pitts. J. GuBen (4). 
Hoastoa 101 «0 000-2 7 2 

Hortda 010 ON 011-3 7 2 

Kile. Hudek (8), Lima (9) and Eusefatt; 
KJJnwnv Powell (8), FJ-ieretoa (8), Nen (9) 
and Zaun. W-Nav 2-1. L— Lima 0-2 
New York 0M 380 124— 10 11 0 

si. Loots no no 000-3 t 1 

M. Clark, McMIdrael (7), KasMmdo (9) 
and Hundley; SMItemyra Fassas (8). 
Batchelor (BL McGrow (9) and Larapkln. 
W-M. Qarki 4-2 L-StaWemyre, 1-2 
HRs — New York. Huskey (5). SL Louis, D. 
Young CO. 

dndnatl 010 130 1)0—7 11 0 

San Dfleao ana on mo — o i j 

Smiley, BeRnda (B) and J-OfiveaTlWOired. 
Lang (6). D. Veras (8) and RaHefty. 
W— SmBey. 3 LS. L— TLWdrrefl, 2-4. 
HRs-andmwtt J.OflverOLW. Greene Uh 
Boone Cl). San Dlega Oontnxco 123. 

G. Vaughn (7). 

Moatreal 1M 000 000—1 7 1 

Las Angeles ON 0M 05x— 5 8 0 

Henwmsoa D. Veres (7), Urbina (8) 
ALVoldes (8) and Wldgen LValdes, Radnsky 
18), Han (7) and Pinza. W-Rodtasky, 1-a 
L— Urbina. 1-2 

CM. IN 110 000 000 02—5 12 S 

5. Rr. 101 010 000 NO 00-3 7 9 

Troehsefc Caskm (6), Wendefl (7), 
Patter so n (9), Rojas (9), TJldams 01), 
Bottenfleid (13) and Servats, M. Hatobord (9); 
vnlandtn ghm . Tavarez (7), Poole (7), D. 
Henry (7), Beds HO), R- Rodriguez (772, RWJ 
(13) and BenytriL W— BottenftetcL 1-a 
L— Roa, 1-2 HRs— Chicago. Sandberg O), 
MaGroce (4). McRae t3). San Fnetdsoa G- 
HH1 (4). 


anetand 010 ON 300-5 8 1 

Detroit 000 ON 000-0 7 1 

Nagy and S. Alomar; Sager, j. Cummings 
(5), Mfcei (7). M. Myers (B), Brocafl (9) and 
Casanova. W-Nasy, 5-2. L— Soger, 2-2 


Cetorado 0M 001 000-1 5 0 

PUadetphia 0M 300 08*— 3 7 0 

ELBoSey and Manmabig; Madura, Ryan 
(B). Battato W and UeberttKd. W— Madura 
3-1 L— R. Brdtey 4-2. Sv— BrttaCaj (7). 
HR— Cotorada L. walker 03). 


devehaid 0M 000 000-0 3 1 

Detroit ON 110 48*— 4 8 0 

Cota n. A. Lo p e (7). KBne (7). Phmk (71 
and Banters; QOvures and B. Jotonsan, 
W— Oflvores, 2-2 L— Colon, 0-2 
HRs— Detroit. Hlgglnson (Si. TaClarit (111. 

Items ON 002 384—11 15 0 

Boston IN 002 000-5 II 1 

Aten* Vaster (4), Patterson (Si, X. 
Itemomtaz O) and I.Rocbtguec Hammond, 
Cone C7J, Stocumb C9), Trfoek (V) and 
Hafteberg. W-Pottereon. 4J. L-Stacomb, 
0-2 HRs— Teas* JujGonaika (2). Boston, 
M. Vaughn (8). 

Knisasaty no ooo ooo-2 n 1 

New York 810 101 0CB>-5 8 8 

Aapter, MT.wn Hants (8) and Spebit 
Mendaza, M.Rh«rn (9) and Posada. 
W— Mendoza 2-1. L— Appter, 4-2 Sv-M. 
Rtuara (12). HRs— New York, Be.W8floms 

Seattle IN ON 010 01-3 11 1 

BotHnora 0M 100 IN 00-2 3 0 

Fassenv Oiariton (9) and Dawnsag 
KamlenlecW, Orosco (8). A.Ba«ez (B), 
RaJMyas (10) and Webster. W— Chortfaa 2- 
1. L — RtLMyers, 0-2 HR-Seat1te> Cora (3). 
Anabefm 011 010 000 0—3 13 1 

MBwaUkee ON 010 2N 1—4 11 8 

Dfdtsoa Janes (7), Holtz (9), DeLucto 

001 and Leyritz: tort. Jjuieirxttes (71, 

VUone (71. Fettero I8L DoJanes (10} and 
Levis. W-DoJones. 3-0. l— D eLuda, 2-1. 
Oakland M2 2M 000-8 7 1 

adcago 300 80S 301-9 17 0 

Tetgheder, S. Montgomery (7). Acre Ui, 
Groom (7), Taylor (7) and Go.wnonts; 
Drntek, CCasffllo O), Barfotfl (7), Levine CT 
and Pena. W— Levine, 2-1. L— Taylor, 1-2 
HRs— Oakinad. Conseco (41. Barista CO. 
Chiooga DaJHamnez CO. F. Thomas (4>. 
Toronto 820 380 010-5 I 0 

Mbmeseto 010 182 000-4 10 2 

Clemens, Crabtree and Sairikigo; Swindell 
Jarets (4 J. -Guardado (7), Nauffy (7) and 
Stelnbaeh. W— aemens. frt). L— SwtndeU. 2- 

2 5 v— Crabber (2). HRs— Toronto. C 
Ddgado (4). SaMoga 2 (31, Minnesota 
Stelnbacfa (3). 


Cbksgo OH BO* 002—2 8 1 

SanFrandsco 830 001 08» 4 10 1 

Tettmapa R. Taris (4), Wendel 161 and M. 
Hubbank Rueter, Poole (9), Beck (7) and 
tewmins. W— Rueter. 24L L— Tetemoca 0-2 
Atlanta B2S ON 011-9 12 2 

PttHbnrta MI 111 OOO — 3 7 8 

Neagle, BtetedU (7), BarawsM (9) and J. 
Lopez; Ueber, Sadawsky (4), Peters (7), 
Morel W and KendalL W— Neagle, 55L 
L— Ueber, 1-4. HRs-OUones (3), Hauser 
(4), J. Lopez (B), Klesko 15). 

Houston 1M 820 MI-4 8 1 

Hondo aoa in 000—2 9 0 

Haft R. Springer (7X, KWogner (8) and 
Ausmus Hetang, Cook (5), Stan Her (fi), 
Hutton (8) and C Johnson. W— Holt *-2 
l — HeUtoo, 1-2 Sv— B. Wagner (D. 
HR— Houston, Blgglo (5). 

CHorado om 1M 110 1—4 7 1 

PbBadataHa 020 0M 1M 2—5 9 1 

Rftz, M. Munoz (6), AtcCuny (71, B. Ruffin 
(B), SJteed CUD and JeJlaed; MJjetter, 
SprodOn (8), BattaDco (10) and UeberttnL 
w— BattoUas l-l. L-S. Reed, o-l. 
HRs— Cotorada Bates 0)- PMtaMphta, 

Doutkxi Oi, Bragna (31. 

Hew Yak OM Ml 100-2 9 0 

St Lout* M0 MO 0M— 8 3 2 

BJones, Jo. Franco (9) and Huntley; 
ALBenes. Fosses (B), Frascatore (8) and 
Dlfencc. LanpMn IB). W— B. Jones. 4-2 
L—AL Bettes, 3-4, Sv— Franco CP). HR-New 
Ymk. CHervd (4). 

Montreal 000 ON 8T8-1 5 1 

Los Angeles 010 MM Ml — 2 4 8 

Buflnger, Daal (7), D. Veres (B) and 

Ftetetw; Park. . Guthrie (8), Hall (9). 
Radinsky (9) and Piazza. W— Rudbtsky, 2-0. 
L— O. veres, l-l. 

Ctodntrit 300 110 018-4 8 1 

San Diego 124 000 Ota— 9 18 0 

Morgan. Carrasco (3), Burba U), Beflndo 

(7) , Remfloger (8) and J .diver, Taubensee 

(8) ; Hrtchcw*. Scon (7), Bochher (S), 

H affirm (9) and Flaberty. W— Hitchcock, 3- 
2 L— Morgan 0-4 Sv— Hoffman (4). 

HR— anckimlL EchtPerez CO. 

53 (BaiMey 17), 5ea«e 51 (Kemp 10). 
Assists— Houston 21 (Threat) S). Seattle 18 
(Kemp, Payton 5). 

(Houston tends scries 2-1) 
adcago 20 24 25 29-1M 

Attanta 24 28 14 12- N 

C: Jordan 8-20H2I, Pfpper»8-20 1-217/A: 
Miitambo 4-108-1116. Henderson 5^3^ u 
Laettner 3-11 7-7 la 5m«h 3-13 4-5 11 
Re bound* Chicago 59 (Coffey 111, Atlanta 
44 (Mutomho 13). Assists— Chicago 25 
(Plppen, Kukoc5), Atknda 13 (Blaytadi 61. 
(Ctocogo leads series 2-1) 

Utah 25 24 28 31—110 

LA, lifters 22 22 25 24- 95 

(h Malone 12-27 18-1 8 41 Rwsell 12-201-1 
79i LA: O'Neal 1 2-19 1IK15 34 Janes 5-8 4-4 
15, von Exei 4-12 45 l5.Rebamds-Uiafi 57 
(Rinse* 101, Los Angeles 38 (ONeal 11). 
Assists— Utah 27 (Stockton 11), Los Angeles 

(Utah leads series 3-1) 


Maty Pierce 001, France, del. Barbara 
Routes (11), Austria, 4-4, 4-i 6-1, ■ Conchffa 
Martinez (3), Spate, del Patty Srimyder, 

Switzerland, 6-2, 4-2. 


Mary Pleica, Franca, del Condi Ita Mre- 
Hnez (3), Spahv 4-4 44X 

Andrei Medvedev, Ukraine, def. Yevgeny 
KafelnBcav (ZJ, Russia, 6-1 6-1; FWh MantBlo 
(1 01 Spain, def. Tammy Haas, Germany, 4 - 4 , 


Andrei Medvedev del Feta Mantata 4-0 6 - 
4 6-2. 



NHL Plavopts 

Janas Btorkmon (1), Sweden, def. Steve 
Campbefl, US, 6-4 4-& 6-4 

NapoB 1,AS Roma 0 
AC Potma 1 Vicenza 0 
Piacenza a AtoJantol 
Sampdoria 1, Intemazionale 2 
RTAffomaOi Juventus St; Parma 55; in- 
tornozionaie 51; Lazio 47, Bologna *7; Som- 
pdorta 45, Udlnese45i Vicenza ■» MBar 41; 
Florentina 40: Atafanta 39? Roma 27, Napoli 
37: Piacenza 33 CogDari 30; Perugia 2& 
Verona 24j Reggtanal9. 


Alas Amsterdam a I i ccro n v eenl , 

RKC WotrtwQk A Gruofschap Doettedtem 3 
Groningen A PSV Etedtioven 1 
Vbtendam A Sparta Rotterdam 2 
Utrecht 1. Vitesse Arnhem 0 
Feyenoord 1, Twente Enschede 1 
AZ AJkmoar 1, Willem II Tilburg 0 
Fortune Sted a NEC NRmegen 1 
STANDOnm PSV Etedhoven 71; Feyeno- 
otd 47; Twente Enschede 5V Afax Amster- 
dam 55; Vitesse Arnhem 51; Heereiween 50; 
Rada JC Kerlnde 49: Graafschap Doet- 
teebem 4 1- HA c Breda 39: Sparta Rotterdam 
38. Ulredht 3& Fortwra Stnard 35; Groningen 
33; VVtoem II Tilburg 31, Vmendam 31; A2 
Aflunoar2A NEC NBmegen 25, RKC Wotri- 




Japanese Leagues 









































anudeiu 9, Hiroshkna 6 
Yomtorl 7, HansMn 2 

Yokohama B, YalcuO 4 

^lemorable Moments from Johnnie Walker: R\ l)KK (’IP with Bernard <;<illuche 

Buffalo 10 3 1—5 

PtaaOdpUa 112 0-4 

Br*t Period: B^udette 4 (Gafley, Plante) 
(pp). 2, p-Zubnn 2 (Hawerchuk, Nnrtmaa) 
top)- Second Period: p-Hawerdiuk 2. Third 
Period: B-Ptontek (PeasAudette) (pp). & B- 
Grasek 2 (Bamaby, Pfante) 6. P-Kfotf 3 
(Padete, Otto) 7. B-Wprd 2 (Plaide) (tfi). A P- 
Renberg 4 (LeChrir, Undras) Owrflme:?, B- 
Ronan 1 (GaDey, Grasek) Shots m goal: B- 6- 
5-8-6-25. P- 16-8-154-43. Goalies: 8- 

(Phltaletphla Hods series 3-1) 
Colorado 110 1—a 

Edmonton a 2 a n 1 

First Period: C-Komensky 8 (Foote) 
Second Ported: E-Maichant a (rii). a E-, 
Smyth 5 (Weight, NUrono*) top). 4 C- 
ozonran 4 (Lemieux, sakic) (pp). Tbirt 
Period: None. Ove rt im e; & C-Lemteux 9 
(Kamensky, SoklO Stats oo goot C- 16-14-6- 
5-41. E- 10-94-1-29. Goodes: C-Roy. E- 

(Cotorada leads series 3>1) 

Super 12 

Canterbury 14 Free State 11 
Queensland «, Gauteng Lions 27 
Auddand 45. WeHngton 42 
NSW 27, Otago 14 

NaM27, Northern Transvaal 27 
nWMBnwm Auckland 45; ACT 34, 
WMRngton 33: Now 3A 1 Gauteng Uons 23; 
Northern Transvaal 22; Cootetbwy 21,- 
Queenstand 20, New South Wales 2a Free 
State 2A Waikato 19; Otago 11 

Leicester 9, Sate 3 


Yokohama 4 Yakutt 2 
ChonictH 5 Hbastana 3 
YOmhirt 4 HansldnT 

World Championships 


New Zealand birrings: 285*7 (50 oven) 

PaWslan bmfngs: 243-9 

New Zealand def. Pakistan by 22 runs 









— - 















Nippon Horn 




50 a 















Canada A Sweden 3 



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NBA Playoffs 






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1. Michael Schumacher, Germany, Ferrari, 
20A692kms In 2 In 5L454 secs, average 
speed 104264 kph 

2. Rubens BmricheflA BrazA Stewart. 5X306 
seconds behind 

A Eddto Irvine. Britain. Ferrari. 1.-22.108 
4 Othrfer Pools. France. Prost 1M4402 
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teneine. Canada, 2ft a Eddie Irvine. 14. 4 . 
Hetoz-Haroid Frentzen. (jemany. David 
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Sheffield Wednesday 1. Uverpool 1 

Tottenham 1, Covwtty 2 
Wimbledon I. Sunderland 0 
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Duisburg ft Hansa Rostock 1 

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Bayer Leverkusen 5, Hamburg 0 
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MoenChen. 39; Ctaogne 38: Hantaurg 37, 
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Duessetdofl 32: 31 Pairtl 27; Frefburg 22. 



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Columbus z New England 0 
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Tampa Bay ft Colorado 1 
Kamos City 1. Los Angeles 0 

Eastern Ccnlerenc e : DX. 

, 11 Columo us 1 1; New Engtarr^ - 

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CrtyHl^Coiorado 9. Dallas 9t sen Jose 8.- Los 


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Costa Rica l Jamaica I 



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By Tom Friend 

New York 7Tmrj 6 wrie r 

INGLEWOOD, California 
— After the Utah Jazz filmed 
a how-not-to-shoot video in 
Game 3 of their playofif series 
against the Los’ Angeles 
Lakers last Thursday, their 
star forward Karl MaJonc and 
three teammates decided to 
spend the next day riding bi- 
cycles in order to relax. 

On Saturday nighty when 
the two teams met in Game 4 
of their Western Conference 
semifinal. Malone was a new 

NBA Playofvs 

man. He scored 42 points, 
\ even though his co-star did 
■ not go by the name of John 
Stockton. Instead, it was a 
small forward, Bryon Rus- 
sell. who lent a hand — a very 
hot hand — as the Jazz beat 
the Lakers. 1 10-95. to take a 
fhree-games-to-one lead in 
the best-of-seven series. 

Malone’s favorite spot was 
a set shot 15 feet <4.5 meters) 
from the basket — in other 
words, a free throw. He went 
1 8 of 1 8 from the foul line and 
saved his last 14 points for the 
fourth quarter. 

”1 just wanted to get out, ’ ' 
Malone said of Friday’s im- 
promptu spin on a two-wheel- 
er. “I told my wife, and she 
said, ’You never go for a bike 
ride.' But I guess there comes 
a time for every thing. We saw 
a guy with all these broken 
bottles on the ground, and he 
. was jumping off a chair right 
onto the bodies. I said, ‘And I 
thought I had bad day.’ ” 

. The Lakers are the ones 
. who could use bicycles now. 
Their point guard Nick Van 
Exel is in another feud with 

his coach, their star center 
Shaquille O’Neal has a sore 
hip, and the Lakers must win 
three straight (including two 
in Salt Lake City) to salvage 
O'Neal’s debut season in Los 

O’Neal finally broke out 
on Saturday with 34 points on 
l2-of-I9 shooting, but he had 
feeble support. 

Del Harris, the Lakers’ 
coach, brought his hook out 
early and yanked Van Exel 
from the game just 120 
seconds after it began. The 
coach then lectured his point 
guard on execution. 

After Van Exel finished the 
game with a mediocre 15 
points. Hams explained that 
he had taken his point guard 
out so Van Exel could tell 
power forward Elden Camp- 
bell what to do on offense. 

“You believe his reason?” 
Van Exel asked. “Was it per- 
formance-related? How 
could it be? There wasn't 
enough time for me to mess 
anything up. What was going 
through my mind was, ‘Why 
am I being taken out?* And 
then I’m thinking there's a lot 
of pressure on him, and it’s 
gotten to him. But when you 
get taken out that early, it 
hurts your confidence.’ ’ 

The Lakers trailed by only 
7 points at halftime, but Rus- 
sell was in the middle of scor- 
ing a career-high 29 points on 
12-of-20 shooting, including 
four 3-pointers. His knockout 
punch arrived In the final 
quarter, with die Lakers trail- 
ing by only 9 points with two 
minutes left. When Malone, 
who had just scored 10 
straight points, missed a fall- 
away jump shot, it was Rus- 
sell who rebounded, scored 
and turned out the lights. 

“That had- to be one of the 
best games I ever played,’’ 
Russell said. “No, the best.” 

Malone’s fourth quarter 
was a sight for sore eyes, too. 
Stockton (11 assists) kept 
feeding him on the pick-and- 
roll, and the Lakers could get 
no closer than 4 points. 

Bulls Feeling Like Themselves Again 

By Selena Roberts 

New York Times Service 

ATLANTA — The Chicago Bulls 
eased fears that they were beaded for an 
unthinkable collapse in their defense of 
the NBA championship with a dom- 
inating 100-80 victory over the Atlanta 

The performance, which gave Chica- 
go a two-gam es-to-one lead m the East- 
ern Conference semifinal series, also 
quieted the notion that the team was 
coming undone mentally. 

“It was a game that we’ve been wait- 
ing for in the sense that we busted out of 
a little slump,” Michael Jordan said 
after the victory Saturday night. “We 
proved something. We played like we’re 
capable of playing.” 

Normalcy returned, in that die Bulls 
used their wide array of talent — which 
included Jordan, with 21 points, Scottie 
Pippen, with 17, and Toni Kukoc, with 
lo — to overwhelm the Hawks. And 
there was Brian Williams, too. 

\ Williams scored 10 of his 14 points 
>■ off the bench in the fourth quarter to lead 
a 194 Bulls run that separated them 
from the Hawks. 

Thai burst was initialed by the Chica- 

go defense. The Bulls, who shot 54 
percent in the fourth quarter, allowed the 
Hawks to shoot just 25 percent In Game 
2, the Hawks’ Mookie Blaylock used the 
screen and roll to open himself up and hit 
■ eighth-pointers. .On Saturday. Blaylock 
had just 10 points and was 1 for 6 from 3- 
point range. The entire Atlanta team 
went flat with him. 

‘ ‘I think we surrendered in the second 
half,” said Dikembe Mutombo, the At- 
lanta center. “I can’t believe we didn't 
take one step ahead today when we were 
given the chance. Today, we quit.” 

The Hawks had done what no one 
expected in taking Game 2 from the 
Bulls at the United Center last Thursday 
night. In doing so. they helped create a 
perception that the Bulls were falling 
apart, a perception that placed the spot- 
light on Dennis Rodman. 

Rodman’s erratic play has been at- 
tributed to everything from his lingering 
knee injury to his inability to turn down 
die strobes on his night life. Whatever 
die reason, die Bulls have tired of trying 
to read the signs. 

Forget understanding. Rodman drew 
the ire of Jordan and Pippen after Game 
2, when Jordan said that some players 
“need to go home, look in the mirror and 

not go to the clubs.” Pippen said that 
Rodman needed to “avoid the technic- 
als” and “stop looking for the crowd to 
give him a lift” 

Rodman may never learn. He still 
does not seem to realize that each time he 
steps onto die court, be has entered a 
zero-tolerance zone with officials. That 
was true Saturday when Rodman picked 
up two fouls in two minutes once he 
came off the bench. 

Soon after, Rodman was called for a 
technical when be slapped the ball out of 
Mutombo’s hand in the final minute of 
the first half. 

“I think if you want to single me out, 
tell me beforehand,” Rodman said. 
“Just don’t do it in front of millions. I 
think that’s unfair.” 

Phil Jackson, the Bulls’ coach, de- 
cided to put a lid on the issue. Rodman 
played just seven minutes Saturday. 
Still, die Bulls outrebounded the Hawks, 
53-36, led by Jason Caffey’s II and 
Jordan's 9. But how often can Jordan be 
a leader in rebounding and scoring? 

Without much resistance from At- 
lanta, the Bulls were allowed to put their 
world in order once again. * ‘ But we have 
to remember,” Kukoc said, “it’s just 
one game.” 

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Tigers Rout Indians Twice in a Row 

Ti/ana Stfrl/tgencr Fnace-ftt uc 

Karl Malone driving to the basket to score two of his 
42 points in Utah’s 110-95 victory over Los Angeles. 

“I had a 2-for-20 game or 
something like that nine years 
ago, and nine years later, I had 
another one,” Malone said, 
referring to his atrocious 
shooting in last Thursday's 
game. “I don’t think I’U be 
around ibr my next one nine 
years from now.” 

+. f’.T Stiff fmir. 

Tony Clark homered twice as the De- 
troit Tigers routed the Cleveland Indians 
1 1 -3 Sunday and sent Orel Hershiser to 
his first loss in eight starts this season. 

Phil Nevin and Damian Easley 
homered. and Bobby Higginson hit three 
doubles for Detroit. The Indians, 12-0 
against the Tigers Iasi season, have lost 
three of five to Detroit this year. 

Clark hit a solo homer in a three-run 
sixth that put the Tigers ahead 4-2. and 
added a two-run homer in the three-run 
seventh following Higginson’s third 
double. Clark, who also homered in De- 
troit's victory Saturday, has 13 homers 
and 39 runs batted in. 

phaues 3, Ro c I om i In Philadelphia. 
Curt Schilling tied a career-high with 12 
strikeouts and pitched a four-hitter to give 
the Phillies their season-high third straight 
victory. Colorado lost its fifth in a row. 
their longest skid of the year. 

Schilling, who leads the majors with 
68 strikeouts, did not walk a batter. He 
struck out Andres Galarraga with a run- 
ner on third to end the game. 

Bn nr*s 8, Pirates 2 John Smoltz 
pitched five-hit ball for seven innings 
and twice starting run-scoring innings as 
Atlanta won in Pittsburgh. 

Javy Lopez added a two-run homer, 
his second in as many games since end- 
ing an 0-for-20 slump. Chipper Jones 
had a pair of run-scoring singles, and 
Andmw Jones was 3-for-4. 

Smoltz helped himself by going 2-for- 
3 with a double, single and a walk. He is 4- 
1 against Pittsburgh the last two seasons. 

Smoltz, a .153 career hitter until this 
season, has been nearly as big a factor at 
the plate as he has been on the mound, 
batting .400 (8-for-20) with a pair of 
extra-base hits. 

In gomes played on Samrday: 

Ttgmrs 6, Indian* o Omar Olivares 
pitched a three-hit shutout as Detroit 
beat Cleveland at Tiger Stadium for the 
first time since SepL 4. 1 995. 

Tony Clark hit a three- run homer, his 
1 1th. Bobby Higginson also hit one for 
the Tigers, who ended a string of 24 
scoreless innings. 

Marimi»3,OrioiM2 Pinch hitter Mike 
Blowers singled indie go-ahead run with 
two outs in the 1 1th inning to lift Seattle 
to victory over Baltimore. ‘ 

Edgar Martinez opened the 1 1th with 
a walk but was forced at second on a 
botched sacrifice attempt by Paul Sor- 
rento. Dan Wilson hit a single, and Russ 
Davis filed out before Blowers grounded 
a single to left. 

Rangers It, Red Sox 5 Juan Gonzalez 
hit a grand slam and drove in six runs as 
Texas won in Boston. 

Gonzalez’s fifth career slam high- 
lighted a six-run ninth inning. It was just 
the second homer of the season for the 
1996 American League Most Valuable 
Player, who missed the first month of the 

season with an injured left thumb. 

Yankees 5, Royals 2 In New York. 
Cecil Fielder singled home the go-ahead 
run in the sixth inning as New Yoik 
rallied from a two-run deficit to beat 
Kansas City. 

Still upset with a blown call in the 7-5 
loss Friday night, Yankees manager Joe 
Torre was ejected by crew chief Rich 
Garcia before the game after he brought 
the lineup card to home plate. 

B+»wers4, Ang»is 3 In Milwaukee. Jose 
Valentin drew a bases-louded walk from 
Rich De Lucia in the bottom of the 10th 

Baseball Round ui* 

inning as Milwaukee beat Anaheim. De- 
Lucia walked three straight baners after 
shortstop Gary DiSarcina mi splayed John 
Jaha’s grounder leading off the lOdi. 

Blue Jays By Twins 4 In Minneapolis. 
Roger Clemens tied a Toronto record 
with 14 strikeouts to win his sixth game. 
He was helped by a pair of two-run 
homers from Benito Santiago. 

Whit* Sox 9, Athletics 8 In Chicago, 
Dave Martinez singled home the win- 
ning run with one out in the bottom of the 
ninth as Chicago beat Oakland. 

Martinez went 4-for-5 with a homer 
and three runs batted in as Chicago won 
for the fifth time in six games. Frank 
Thomas also homered as ihe White Sox 
got a season-high 17 hits. 

Giants 4, Cubs 2 Kirk Rueier. tagged 
out in an odd triple play, atoned by 
pitching eight shutout innings as San 
Francisco beat Chicago. 

Rueter (2-0) allowed four hits, struck 
out a career-high eight and walked 

Rueter’s basenmning. however, was 
not quite as sharp in the fifth inning 
when the Cubs took advantage of the 
infield fly rule and the wind at San 
Francisco's 3Comm Park to turn the first 
triple play in the majors this season. 

The Giants led 3-0 when Rueter 
opened with a single and took second on 
Darryl Hamilton’s single. 

Three Cubs lunged for the ball before 
it bounced off center fielder Brian 
McRae's glove and hitthe ground. 

Rueter took off for third and was 
thrown out by McRae. Hamilton hes- 
itated and then tried for second, but third 
baseman Jose Hernandez’s throw to 
Ryne Sandberg hear him. 

Braves 9, Pirates 3 In Pittsburgh, Jeff 
Blauser hit a grand slam an inning after 
Ryan Klesko and Javy Lopez homered in 
succession as Atlanta finally solved 
Pittsburgh's starting pitching. 

Blauser’s fourth career grand slam 
made it 7-0 in the third and allowed 
former Pirates starter Denny Neagle (6- 
0) to coast to a career-high sixth con- 
secutive victory. 

Phillies 5, Rockies 4 In Philadelphia, 
Darren Dauhoa’s two-run homer with 

two outs in the 10th inning beat Col- 

Gregg Jefferies opened the inning 
with a*s ingle but was forced on Mickey 
Morandini’s grounder. After Scott 
Rolen struck out. Daulton lined a 1-1 
pilch over the right-field fence tor his 
ihird homer of the season. 

Astros 4, Marlin* 2 Pinch-hiner Ricky 

Gutierrez singled in the go-ahead runs in 
the fifth inning as Houston beat Florida. 

The Marlins lost for just the fifth time 
in 20 home games. 

Herts 2. Cardinals 0 In St. Louis. 

Bobby Jones and John Franco combined 
on a three-hitter, and John Olerud hit a 
home run as New York reached .500 for 
the first time in over a year in a victory 
over Sl Louis. 

Jones (6-2) became the NL's second 
six-game winner, allowing two hits in 
eight innings. He retired the last eighr 
baners he faced. 

Dodgars 2, Expos 1 In Los Angeles, 
pinch-hiner Eddie Williams, batting for 
just the second time this season, singled 
home Todd Zeile with two outs in the 
ninth inning. 

Zeile singled with one out in the ninth 
and one out later, rookie Wilton Guer- 
rero reached on a strikeout wild pitch. 
Williams baned for reliever Scon Rad- 
insky and lined a 1-1 pitch to center for 
his first run baned in with the Dodgers. 

Padro* 9, Rods 6 In San Diego. John 
Flaherty and Sieve Finley each hit two- 
run doubles during a six-run third inning 
as the Padres won for just the fifth time in 
20 games. The Padres snapped a 3-5 tie 
in the third by sending 10 barters to the 
plate. ( WP. API 

Am Boorg/Reiten 

Boston shortstop Nomar Gar- 
ciaparra throwing out a runner. 

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ICE HOCKEY Sweden Nears World Title p. 1 6 TENNIS Pierce Ends 2- Year Wait P .l 6 BASEBALL Tigers’ Revenge p. 


PAGE 18 


MONDAY. MAY 12. 1997 

World Roundup 

Ttm Odctodenf AFP 

Bernhard Langer chipping 
onto the 2d green on Sunday. 

Langer Beats Rain 
And Lightning 

golf German Bernhard Langer 
gained his second successive 
European Tour title Sunday when 
he won a soaked Benson and 
Hedges International by two 
strokes from Ian Woosnam of Bri- 
tain after play was suspended 
twice due to lightning and tor- 
rential rain. 

Langer, winner of the Italian 
Open last weekend, bad a final 
round 69 to finish with a 12-under- 
par 276. Woosnam had a 70 for 
278 with Briton Lee Westwood 
third a further two strokes back on 
280 after a 72. 

Woosnam 's 

chances seemed to have dis- 
appeared when he double-bo- 
geyed the par four 1 0th. But he 
pulled a shot back at the next and 
finished with birdies on four of the' 
last five holes. 

Westwood after' holding 
second for most of the round saw 
his hopes perish on the 585-yard 
17th when he went into the water 
and took a bogey six. ( Reuters) 

Natal Reaches Last Four 

rugby union Natal scraped a 
draw on Sunday to join an Aus- 
tralasian trio in the Super 12 
championship semifinals. 

The 27-27 stalemate with 
Northern Transvaal ensured Natal 
line up with Auckland Welling- 
ton and Australian Capital Ter- 
ritory in the last four. 

Their three points from the 
match — two for the draw and one 
for their tally of four tries — was 
enough to put them out of reach of 
the chasing teams. 

Auckland guaranteed itself a 
home semifinal and maintained a 
nine-point lead in the standings by 
beating Wellington Hurricanes, 
45-42. on Saturday. (Reuters) 

Aflen Kicks 10 Points 

football Former soccer star 
Clive Allen kicked three field goals 
and a extra point Sunday as the 
London Mooarchs beat the Scot- 
tish Claymores 16-8 in the World 
League of American Football 
On Saturday, Manfred Burgs- 
m Lie Her, another former soccer 
player, kicked a field goal with 12 
seconds to dash the Frankfurt 
Galaxy's dreams of playing host 
to the World league of American 
Football World Bowl 
After two earlier misses by the 
Rhein Fire kickers; Burgsmueller 
connected from 19 yards to give 
the Duesseldorf Rhein Fire a 10-7 
victory that ended the Galaxy’s 
hopes of being the league's first- 
half champion. (AP 

Boldon Sets Best of Year 

ATHLETICS Ato Boldon of 

Trinidad ran the year's fastest 100 
meters and seventh fastest of all 
time, winning a race in Modesto. 
California, in 9.89 seconds Sat- 

The world record, set by 
Canada's Donovan Bailey at the 
Atlanta Olympics last year, is 9.84 
seconds. Boldon was the bronze 
medalist in the 100 and 200 meters 
in Atlanta. (AP) 

Gamble on Rain E nds Ferrari’s Long Drought 

Schumacher Switches Cars Just Before Start 
To Win Slick and Short Monaco Grand Prix 

The Associated Press 

. MONACO — Michael Schumacher 
gave Ferrari its first Monaco Grand Prix 
victory in 1 6 years as he captured a rain- 
plagued race with a daring gamble be- 
fore the start. 

It was Schumacher’s 23d career vic- 
tory but first this year for die two-time 
world champion. Even so, he overtook 
Jacques Vilieneuve at the top of the 
driver standings. 

Schumacher became the first Ferrari 
winner in Monaco since the late Gilles 
Vilieneuve, the father of Jacques, in 
1981. Schumacher bear Rubens Bar- 
richello, in a Ste wart-Ford. by 53 
seconds. He won in Monaco in 1994 and 
1995 in Benettons, but last year, in the 
rain, he crashed his Ferrari into a barrier 
on the first lap coming down from the 
Loew's hairpin curve. 

This time he was ready for the rain. 

ft started lighdy as die cars went out for 
a warm-up lap on their way to the starting 
grid. Schumacher immediately went to 
the pits to change to a back-up car that 
had been prepared with rain settings. 

“We had two solutions, Schumacher 
said. “One was for the dry and one was 
for the intermediate one. I just decided 
in the last seconds to jump in die in- 
termediate.'' By the time the race start- 
ed the rain had intensified and the 
gamble paid off. Heinz-Harald 
Frentzen, the pole position winner in a 
Williams-Renault, was left at the start 
by Schumacher. He struggled and went 
out of the race in the 42d lap. Frentzen 

started on dry-weather tires, hoping the 
conditions would changp. 

“I was concerned about that,” Schu- 
macher said. “He could have been 

Schumacher moved away from the 
rest of the field so easily he had more 
than a six-second lead at the end of the 
first lap. Behind him, the slick con- 
ditions started taking a tolL Last year 
only three cars finished this year 10 of 
the 22 starters made it to the finish line. 

David Couithaxd spun out at the chi- 
cane coming out of die tunnel taking 
McLaren-Mercedes teammate Mika 
Hakkinen out of the race along with 
Damon Hill. It was Hill's fifth con- 
secutive race without a finish in his 
Arrows- Yamaha. He was world cham- 
pion last year in a Williams-Renault 

Johnny Herbert who led Thursday's 
free practice in a Sauber-Petronas, went 
out on die ninth lap while in fifth {dace. 
Ralf Schumacher. Michael's younger 
brother, went out two laps later while 
third. Meanwhile, Michael was piling on 
the laps and increasing his advantage. 

Schumacher maintained a 30-second 
lead over Reubens Barrichello through 
the 24th lap when be upped the tempo 
and increased it to 41 by the 26th. 

He pitied for tires and fuel on the 3 2d 
lap and started rebuilding his lead. Soon 

the margin was up to more than a minute 
by the 40th lap after Barrehello went in 

for a^rit stop. 

By the 15th lap, Schumacher was 

lapping Jacques Vilieneuve, who went 
into the pits to change tires after the third 
lap and struggled almost two minutes 
behind Sch umach er 

Schumacher passed him easily head- 
ing up the hill to the Casino and also 
moved passed Frentzen die next lap. 

By the 18th lap, Vilieneuve was out 
of the race, the second early retirement 
for the Canadian after two victories. 

nimarher was so far ahead that be 
could afford to miss a comer turn on the 
53d lap and casually restart, losing just 
six seconds from his lead at the time. 

“I locked the front tire and 1 couldn’t 
slow down enough, ’’ Schumacher said. 
“Rather than risking going around 
maybe hitting the barriers slightly I de- 
cided to go straight on and have a little 
spin and just go on." 

He went into an escape road without 
bumping anything and aid a quick spin 
to get back on the track, holding on to a 
lead of more than a minute. 

The race was cut short from the 
scheduled 78 laps to two hours, in which 
time Schumacher completed 62 laps. 

He averaged 104.264 kilometers an 
hour (64.8 miles an hour) for the 208.75 
kilometers (129.74 miles). 

Eddie Irvine finished third to give 
Ferrari another spot on the podium. It 
was his third consecutive top three fin- 
ish. Fourth was Olivier P&nis, the victor 
last year, in a Prost-Mugen-Honda. 

Mika Salo of Finland in a Tyrrell- 
Ford was fifth and Giancarlo Fisichella 

of Italy in a Jordan-Peugeot, sixth, both 
und Scfai 

more than a lap behind Schumacher. 

MidKi UpduS/Thr Asvclaal Pin 

Schumacher steering in the Mira beau corner, on his way to victory 
Sunday. The race was cut short from the scheduled 78 laps to two hours- 

Star-Studded Middlesbrough Loses its Place 

Newcastle Scores 5 on Final Day to Grab England’s 2d Spot in the Champions League 

OnifdrJ trr Our Sbjf F mm OiipaKha 

After a tumultuous season in which 
Middlesbrough's Italian and Brazilian 
stars have carried it to two English cup 
finals and the club was punished after it 
failed to appear for a league game, the 
club went down from die English 
Premier League on Sunday. 

1 Middlesbrough drew 1-1 at Leeds 
and was relegated to the First Division, 
along with Sunderland, a 1-0 loser at 
Wimbledon, and Nottingham Forest 

Coventry, 2-1 winners at Tottenham, 
and Southampton, which lost 1-0 at 
Aston Villa, escaped on the final af- 
ternoon of the season. 

Middlesbrough, which was docked 
three league points .for calling off a 
■ game without permission, needed a vic- 
tory in Leeds to have a chance of staying 
in the League, but could only come up 
with a tie. 

The three points, deducted after Bry- 
an Robson, the Middlesbrough man- 
ager, called off a game against Black- 
bum because 23 players were injured or 

sick, made all the difference. 

Those would have been enough for 
survival but instead, Robson’s team, 
which includes stars such as Juninho and 
Emerson from Brazil and Italian striker 
Fabrizio Ra vane Hi. will play Division 1 

Soccbi Roundup 

next season, and there is speculation that 
the well-paid overseas stars won’t 

Middlesbrough fans stood in tears ai 
the end of the game, and Juninho, who 
scored his team's goal, lay on the field, 

There was delight for Newcastle 
United. Sunderland's neighbor. It 
thumped Nottingham Forest 5-0 to 
overtake Liverpool and Arsenal, finish 
as runners-up and qualify for the second 
English spot in the expanded European 

Newcastle finished even on points 
with Arsenal, which beat Derby 3- 1 , and 
Liverpool, which tied 1-1 at Sheffield 

Wojfjpog RsuyAteoien 

Hasan Salih amidzic of Hamburg, right, taking the ball past Christian 
Woerns of Leverkusen in the Bundesliga Sunday. Leverkusen won 5-0. 

Wednesday, but Newcastle's five-goal 
victory was crucial in the tie-breaker. Its 
goal difference — goals scored minutes 
goals conceded — was +32, to Ar- 
senal’s +30 and Liverpool’s +25. 

Arsenal played most of the game at 
Derby with 10 men after falling behind 
and then losing Tony Adams, who was 
expelled for two yellow cards. Ian 
Wright scored twice as Arsenal fought 
back. Wright finished the season with 
23 goals, second-highest in the Premier 
League. Alan Shearer of Newcastle 
United, who also scored Sunday, fin- 
ished with 25. 

Manchester United was presented 
with the league trophy for the fourth time 
in five seasons before its home match 
against West Ham, which it won 2-0. 

Germany Bayer Leverkusen closed 
in on league-leader Bayern Munich with 
a 5-0 victory over Hamburg in Bundes- 
liga play Sunday. 

Leverkusen’s Ulf Kirsten scored 
three goals in the victory, which lifted 
Leverkusen to second in the league as 
the season draws to a close. VfB Stutt- 
gart slipped to third. 

Nico Kovac scored Leverkusen’s 
first goal 10 minutes into play, and 
Paulo Sergio scored the fifth in the 70th 
minute. Kirsten dominated the hour in 

Bayern was held to a 0-0 home draw 
by last-place Freiburg on Saturday. 

Juergen Klinsmann hit the bar and 
missed an easy scoring chance. He was 
replaced by an amateur, Carsten Lakies, 
10 minutes from the end of the match 
Freiburg goalkeeper Joerg Schmadtke 
made several splendid saves. 

“Soccer is a running game — that 
means you have to run sometimes,” 
said Franz Beckenbauer, the Bayern 
president . 

Stungart, now five points behind 
Leverkusen, lost ground with a 2-1 de- 
feat at Bochum. Peter Peschel scored the 
winning goal as Bochum came from 
behind to grab three points, which lifted 
the team into fifth spot and toward a 
UEFA Cup finish. 

Mathias Hagner put Stuttgart ahead 
in the 60th minute. But in the final 20 
minutes it conceded two goals and lost 

midfielder Marco Haber to a red card. 

Spain Barcelona’s hopes of taking 
Spain's second European Cup place 
were bolstered Sunday when rival Real 
Beds lost unexpectedly. 2-1. at last- 
place Logrones. 

With five games left to play. Beds is 
six points behind Barcelona, which beat 
Real Madrid 1-0 in a bad-tempered 
game Saturday. Barcelona is still five 
points behind Real Madrid, the league 

In other games Atletico Madrid's 
Kiko Narvaez headed the winning goal 
as the champion beat Athletic Bilbao 2- 
1 , a result that virtually guarantees At- 
letico a UEFA Cup place next season. 

Zaragoza pulled out of trouble with a 
l-Q victory over Espanyol Sevilla sur- 
prised Hercules with a crushing 5-0 
victory, and both face possible releg- 

On Saturday, A solitary goal from 
Brazilian striker Ronaldo gave Bar- 
celona a 1 -0 victory over Red Madrid in 
a clash between the top two teams. 

Both teams were lucky to end the 
game with 1 1 players after a disap- 
pointing match. 

If teams finish even, the results of 
games between them are used as a tie- 
breaker. Real beat Barcelona 2-0 earlier 
in the season, so it holds the edge. 

WORLD cup Paulo Cesar Wanehope 
scored twice to give Costa Rica a 3- 1 
World Cup qualifying victory over Ja- 
maica on Sunday. 

Costa Rica, a finalist in 1990. over- 
took the United Slates and moved into 
second place in the final regional qual- 
ifying group. 

The top three teams in the group, 
which also includes Mexico. El Sal- 
vador and Canada, go to France next 

Wanehope. who plays for Derby 
County in England, took advantage of a 
blunder by Jamaica goalkeeper Warren 
Barrett to score in the 3 2d minute. He 
was on target again in the 70th with a 
powerful right- foot effort. 

In between. Andy Williams scored a 
60th minute equalizer. Jamaica's first 
goal in the group. (AP. Rearers .AFP) 
More Soccer: Page 16 

Knicks Win 
To Go 1 Up 
On the Heat 

The Associated Press 

NEW YORK — Both offenses 
were ugly and both defenses were 
suffocating. And when Game 3 of 
the Miami Heat-New York Knicks 
series came down to one final heave, 
it was appropriate that the biggest 
play of all was a blocked shot. 

Patrick Ewing blocked Tim 
Hardaway's 3-point attempt with 
three seconds left on Sunday to 
preserve the Knicks’ 77-73 victory 

Jazz and Bulls Win. Page 17. 

over the Heal. The triumph gave 
New York a 2-1 advantage in the 
best-of-seven series heading into 
Game 4 Monday night at Madison 
Square Garden. 

The Knicks made only five field 
goals in the fourth quarter and none 
in the final 6:20. but they also held 
Miami to just two baskets over the £ 
final 1 2 minutes and zero points in p 
the final 2:50. 

Ewing led New York with 25 
points and U rebounds and out- 
played his counterpart. Alonzo 
Mourning, for the third straight 
game. Mourning had 14 points and 
seven rebounds and was not a factor 
in the fourth quarter. 

Allan Houston added 13 points 
und John Starks had 1 1 . including 
three free throws with 2:42 left to 
give New York a 76-73 lead. 

The Heat managed to get 
Hardaway into a mismatch “in 
which he was guarded one-on-one 
by Ewing, but in this instance it was 
just the kind of mismatch the 
Knicks needed. With the clock tick- 
ing down, Hardaway attempted a 3- 
pointer from the right wing and 
Ewing rejected it. The ball came 
down into Ewing’s hands. 
Hardaway fouled him. and Ewing 
made one of two free throws with 
1 .8 seconds left to clinch iL 

Even 1 country has its own AT&T Access Number which 
makes calling from France and other countries really 
easy. Just dial the AT&T .Access Number for the country 
you’re calling from and you’ll get the fastest, clearest 
connections. And be sure to charge your calls on your 
AT&T Calling Card. It’ll help you avoid outrageous 
phone charges on your hotel bill and save you up to 60° o * 
So please check the list for AT&T Access Numbers. 

AT&T Access .Numbers 

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