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The World’s Daily Newspapei 


London, Tuesday, May 13, 1997 

No. 35,519 

India, Pakistan 
Open ‘New Era’ 

2 Leaders Pledge to Seek 
Ways to Blunt Hostility 

By John F. Bums 

New York Times Service 

MALE, MaJdive Islands — With a few months to go 
before the 50th anniversary of the partition that created 
their two nations, the prime ministers of India and 

and vowed to seek ways around deep enmities that 
both acknowledged as having contributed to entrench- 
ing the poverty of tens of millions of their people. 

■ The two leaders, Inder Kumar Gujral of India and 
Nawaz Sharif of Pakistan, used their meeting at a 
resort hotel on one of Maldives’ 1 J200 coral islands to 
create an atmosphere of striking affability, a far cry 
from the shrill denunciations that have often char- 
acterized the two nations' exchanges in the past. 
Officials on both sides said they could recall nothing 
like it since a far-off India-Pakistan summit meeting in 
1 966, when another attempt at detente flared and was 
just as quickly extinguished. 

At one point, Mr. Sharif, -who is 47 years old and 
buoyed by a landslide victory in a general election in 
Pakistan in February, turned spontaneously toward 
Mr. Gujral, who is 77 and in his fourth week as India’s 
leader, and said, “I like tins man very much." 

See TALKS, Page 7 

$33 Billion Giant: 
Guinness to Unite 
With Grand Met 

By Erik Ipsen 

International Herald Tribune 

The king of Bhutan, Jigme Sing 
Paksitan, crater, and Inder 

e Wangchuck, left, greeting Prime Ministers Nawaz Sharif of 
Lumar Gujral of India on Monday m Male, Maldives. 

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Knick? Win 
To Go I Up 
On the Heat 

Discovering Asian Origins for 6 Western 9 Woes 

By Barbara Crossette 

New, York Times Service 

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MANDALAY, Burma — On the outskirts of Man- 
.dalay, the heart of Burmese religious and cultural life, 
a kind of California suburb is taking shape, with 
expensive detached houses in landscaped gardens 
walled off from the city’s less prosperous reality. A 
shopping mall cannot be far behind. 

Another sign of the Americanization of Asia? Not 
so, say the neighbors. Die big whim mansions of 
concrete and glass are neo-Thai in their inspiration, 
built with Burmese and Chinese money, at least some 
of it garnered from narcotics and die smuggling of 
Burmese gems and timber. 

Everything about this phenomenon is Asian. So are 

the construction companies clawing up virgin rain 
forests to build golf courses in Malaysia and the 
studios in Hong Kong and Bombay dial make films 
violent enough to startle Hollywood — and to provoke 
an Asian backlash against perceived threats to family 
values and decency. 

It used to be that when things started to unravel in 

almost any Asian country it was easy to finger the 
culprit: Americanization. Are families falling apart? 
Dig oat the American divorce rates. Children joining 
gangs? Talk about Los Angeles and American movies. 
Rock groups replacing the traditional music of the 
gamelan? Must be the imported TV programs. The 

environment in ruins? Blame New York's air con- 
ditioners. AIDS? That's a Western disease, the Thais 
once said confidently as more and more warehouse- 
sized "massage parlors" opened. 

Now in cities, towns and satellite-dished villages 
across Asia — and in other parts of the world where 
rising incomes and greater access to goods and in- 
formation are breeding consumerism and speeding 
modernization — it is getting much harder to hold the 
West, particularly the United States, responsible for 
assaults on local cultures. 

Worldwide communications — especially satellite 
television, the fax machine and the Internet — hasten 
the narrowing of cultural differences. Not everything 

See ASIA, Page 4 

LONDON — A conversation over 
dinner on April 10 between the chair- 
men of two of Britain’s leading compa- 
nies bore fruit Monday in the form of a 
plan to merge Grand Metropolitan PLC 
and Guinness PLC into a $33 billion 

The new company, GMG Brands, 
wiQ unite under one roof such famous 

obal brands as Burger King, Johnnie 
alker scotch, Pillsbury and Guinness 

At the heart of die merger are plans to 
perk up the prospects for their respect- 
ive wine and alcohol units by combining 
die two to form the world's largest dis- 
tiller and vintner, a subsidiary that will 
contribute nearly 60 percent of the com- 
bined group's earnings. 

Faced with little or no growth in 
alcohol sales in its major, developed- 
country markets. Grand Metropolitan 
has now found a pathway to something 
altogether more promising by throwing 
its lot in with Guinness, one of the 
industry’s leaders in breaking into the 
fast-growing Asian and Latin American 
markets. All told, emerging markets 
contributed 44 percent of profits at 
Guinness's United Distillers unit last 

“Our strengths in developing mar- 
kets will be one of the biggest attrac- 
tions of these two companies coming 
together.*’ said the Guinness chairman, 
Tony Greener, who will become co- 
chairman of the new company if the 
merger wins the expected shareholder 
and regulatory approvals — and its 
chairman when the Grand Met chair- 
man, George Bull, retires next year. 

The merger of Grand Metropolitan 
and Guinness marks the second time in 
less than a week thai the lure of faster 
growth in markets such as Larin Amer- 
ica and Asia has led to a major corporate 

The first such move came last Wed- 
nesday when Unilever PLC said it 
would take the £4.9 billion ($3 billion) 
in proceeds it had just realized on the 
sale of its specialty-chemicals business 
and plow them into an acceleration of its 
push into developing countries. 

Combined, Grand Metropolitan and 
Guinness will rank as the world's sev- 
enth- largest food and drink company in 
terms of the total value of their shares 
outstanding, just behind McDonald's 
Corp., the hamburger giant, and just 
ahead of Campbell Soup Co. 

The deal is a marriage of relative 
equals. As of Friday, Grand Met had a 
market value of £1 0.8 billion, compared 
with Guinness's £9.8 billion. 

Grand Met shareholders will end up 
with 52.7 percent of the combined en- 

Shares in Guinness rose 85 pence on 
Monday, to 600, while Grand Met 
shares rose 76 pence, to 593. 

Most important though, the new com- 
pany will combine the two parents’ li- 
quor and wine units into a new entity to 
be called United Distillers & Vintners, a 
company three times as large in terms of 
profits as its nearest rivals. Seagram Co. 
of Canada and Allied Domecq PLC of 

"They will be in so much stronger a 
position than anyone else that if they 
don’t make a lot more money as a result 
of this merger they should be shot," said 
Ron Littleboy, an analyst with Nomura 

He forecasts that GMG Brands will 
dominate the global wine and spirits 
business in a way Anheuser-Busch Cos. 
does die American beer market. 

With a combined world market share 
of well under 10 percent, company of- 
ficials and analysts expected little in the 
way of regulatory hurdles to the trans- 

By promising shareholders a £2.4 bil- 
See MERGER, Page 12 


Asia Now Taps Its Foot 
To Free-Market Mantra 

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By Velisarios Kattoulas 

International Herald Tribune 

FUKUOKA. Japan — From Beijing to 
Manila and Bhutan to Mongolia, Amer- 
ican c utis for deregulation and economic 
liberalization at last appear id have won 

• over Asia’s economic policymakers. 

Washington may have long ago yield- 
Aed in its failing campaign to win Asian 
^hearts and minds. But cm the pocketbook 
issues that drive the region’s dynamic 
economies. U.S. free- market principles 
were the mantra of choice as finance 
ministers and central bankers convened 
in this southern city for the Asian De- 
velopment Bank’s 30th meeting. 

■ As little as three years ago most of- 
ficials in the region were ar best am- 
bivalent about the gospel accenting to 
Washington’s economic prophets. 
Many greeted with derision U.S. calls 
for governments to crack down on cor- 
ruption and curtail their influence over 
banks and private companies. 

“Today we think American economic 
policies are common sense," said the 

• governor of the Central Bank of Mon- 
golia, Unenbat Jigjid, summarizing die 
views of fellow delegates to the three- 
day conference. “In Asia there were 

many contrasting approaches to ecowxn- 

ic development." he said. ‘ ‘But now it is 
all about the globalization of the econ- 
omy and achieving greater efficiency by 
getting market forces to work.’’ 

Gregory Pager, director of the Asia- 
Pacific department at the Institute of 
International Finance, in Wa s hing ton , 
said: “In the early 1990s, many counr 
, pies in the region took booming ecou- 
loraies for granted. But they are finding 
that without transparency, good man- 
agement and reform, economic devel- 
opment is by no means -guaranteed.” 

Finance ministers and central bankers 
from countries including China, the 
Philippines, India and Mongolia 
pledged to stick to economic reforms to 
maintain economic growth. 

. The governor of the People’s Bank of 
China, Dai Xianglong, said China’s mar- 
ket-oriented economy was “on a track ot 
sustained, rapid and healthy growth. 

“Tire macroeconomic adjustment mat 

was primarily designed to overhaul in- 
flation has reached expected goals," Mr. 
Dai added. In recent years. China has 
moved to reform state-owned enterprises 
and give entrepreneurs a freer hand. 
Largely because of suefareforms, he said, 
the Chinese economy could grow by 8 
percent in the next few years, while 
keeping inflation below 6 percent 

India granted its ailing state-owned 
airline $90 million in aid. Page 15. 

He also repeated his government’s 
earlier pledges to strengthen the role of 
Hong Kong as a key financial center 
after the British colony reverts to 
Chinese rule on July 1. 

His counterpart from Manila. 
Roberto de Ocampo, said the Philip- 
pines would accelerate economic re- 
forms to sustain its recent transform- 
ation from the * ‘sick man of Asia" to the 
region's “new tiger.” 

“We shall not allow, seeming success 

See MANTRA, Page 4 

Kasparov Sings the Deep Blues 

j Experts Stunned by Russian’s Poor Moves in Loss to Computer 

By Bruce Weber 

New York Times Service 

Garry Kasparov pondering a move in the sixth 
game against the IBM computer Deep Blue. 

NEW YORK — It was done in brisk and brutal 
fashion. After the IBM computer Deep Blue un- 
seated humanity, at least temporarily, the finest chess 
playing entity on the planet, Garry Kasparov, ex- 
plained: “I lost my fighting spirit" 

The unexpectedly swift denouement to the bitterly 
fought contest, after just 19 moves in the sixth and 
final game, came as a surprise, because until Sunday 
Mr. Kasparov had been able to summon die where- 
withal to match Deep Blue gambit for gambit ' 

The manner of the conclusion overshadowed the 
debate over the meaning of the computer’s success. 
Grandmaster and computer experts alike went from 
praising the match as a great experiment invaluable 
to both science and chess (if a temporary blow to the 
collective ego of tbe human race) co smacking their 
foreheads in amazement at tbe champion's abrupt 

“It had the impact of a Greek tragedy," said 
Monty Newborn, chairman of the chess committee 
for the Association for Computing, which was re- 
sponsible for officiating the match. 

It was the second victory of the match for tbe 
computer — there were three draws — making the 
final seems 3 Vi to 214, the first time any chess cham- 

pion has been beaten by a machine in a traditional 
match. Mr. Kasparov, 34. retains his title as world 
chess champion, which he has held since 1985, but 
the loss was nonetheless unprecedented in his career; 
he has never before lost a multigame match against 
an individual opponent. 

He also takes home a loser's purse of $400,000. 
while IBM gets the winner’s share of $700,000 — 
money the company said it would pur toward con- 
tinued research. 

Afterward, Mr. Kasparov was both bitter at what 
he perceived to be unfair advantages enjoyed by the 
computer and, in his word, ashamed of his poor 
performance on Sunday. 

“I was not in the mood ofplaying at all," he said, 
adding that after Game 5 on Saturday he had become 
so dispirited that he felt the match was already over. 
Asked why, he said: “I’m a human being. When I see 
something that is well beyond my understanding . I'm 

Grandmasters at the match in Manhattan were 
stunned not just by tbe resignation but by Mr. Kas- 
parov’s poor play in die game. 

“I think he didn't try Ins best," said Susan Polgar, 
the women's world champion, who after the game 
issued her own challenge to IBM to play against 

See CHESS, Page 7 

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In a First, 14 North Koreans Flee in Boat 

Two North Korean families staged a 
daring escape by boat to tbe South on 
Monday in what was thought to be the 
first defection of its kind from North 

The group of 14 people, including a 
2-year-old child, was one of the largest 
ever to flee the North. 

Their wooden vessel, disguised as a 
Chinese fishing trawler, was intercep- 
ted off the west coast of tbe Korean 
Peninsula just sou* of a military de- 
marcation line that splits the two 

Chronic food shortages are driving 
growing numbers of desperate citizens 
to flee North Korea. Page 4. 

S The Dollar | 


Monday e 4 PM. 










120 20 




The Dow 

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Monday <*»• 





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Monday O 4 P.M. 





More NATO Troops 
May Head for Bosnia 

WASHINGTON (Reuters) — The 

nja us — — j —f v .. 

troops in September to protect civil- 
ians voting in municipal elections, the 
alliance’s commander said Monday. 

But U.S. Army General George 
Joulwan, commander of NATO forces 
in Europe, stressed that no final de- 
cision had been made. “We have 
looked at a range up to and mciudmg 
four to six battalions," he said. 

There are now about 31,000 peace- 
keepers from 34 nations in Bosnia. 


Searching for Something in Yemen 


A Covetous China Worries Neighbors 


Britons Examine EU Social Chapter 

Books — 

Crossword..- — 

Opinion — 


Page 10- 

— Page 4. 

Pages 8-9. 

- PagM 18-19. 

7ft ekdermarM 

Page 15. 


catalogue for her unwanted 
frocks reveals the new face of Di- 
ana, Princess of Wales. Page 10. 

A Deadly Price for Land? 

Dealer Accused of Selling Property to Jews 
Dies Mysteriously After Palestinian Threats 

By Joel Greenberg 

New York Times Service 

JERUSALEM — Behind shuttered 
doors on an empty side street in East 
Jerusalem, the Bashiti family grieved 
alone far the head of the household, 
Farid Bashiti, whose bludgeoned and 
bound body was found in the West Bank 
town ofRamaliah. 

There were no callers coming to pay 
their respects, no Koran verses being 
read in memory of Mr. Bashiti, who in 
death was declared a pariah, accused of 
what the Palestinian Authority last week 
declared a capital crime — selling land 
to Jews. 

In a sermon Friday at A1 Ansa 
mosque, the mufti of Jerusalem, the 
highest-ranking Muslim cleric in the 
city, pronounced Mr. Bashiti’s body un- 
fit for religious buriaL 

“Anyone who sells land to the enemy 
should not be washed, prayed ova- or 
buried in Muslim cemeteries,’ ’ said the 
mufti, Ikrama Safari, who was appointed 
by *e Palestinian leader, Yasser Arafat 

No one has claimed responsibility for 
killing Mr. Bashiti, 70. a real estate 
dealer, and details of his death remain 
unclear. But it has earned a potent mes- 

A spokesman for the Israeli police 
said they were investigating whether 

Mr. Bashiti had been slain in a business 
dispute or because he had sold land to 
Jews. The Palestinian police in Ramal- 
lah, which is governed by Palestinians, 
have also announced an investigation. 

Israeli security officials say privately, 
as do many Palestinians, that they sus- 
pect die killing was the work of the 
Palestinian Authority, which said after a 
cabinet meeting last week that it would 
impose speedy death sentences for the 
sale of land to Israelis. 

That declaration was intended to block 
the spread of Israeli settlements, an issue 
that has become particularly acute since 
Israel began work in March on a new 
Jewish neighborhood in East Jerusalem 
- on land mostly bought from Arabs. 

Although Palestinian officials have 
denied any links to Mr. Bashiti’s ttearii 
they have not spoken out to condemn ft. 

“Everybody now realizes tbe danger 
of selling land to a Jew,’ ' said Freih Abu 
Medein, the justice minister in the au- 

in a newspaper interview last week, 
Mr. Abu Medein defended the 
penalty as pan of a struggle with Israel 
over control of disputed land. 

“The problem is that Israel does not 
distinguish between ownership of l 
and sovereignty over it," he said. “ 

See PARIAH, Page 7 


PAGE mo 

On the Road to Nirvana / Tough Chewing in Yemen 

Searching for God ( or Something) in a Bag of Khat 

Iran Death Toll 
Rises to 4,000; 
Bonn Vows Aid 

By John Lancaster 

Washington Past Service 

S AN’A, Yemen — It was an 
hour into my first khat chew, 
and so far the experience had 
been something of a let- 

I was not euphoric, or even mildly 
lightheaded. God was nowhere in 
sight The dominant sensation, in 
fact, was of sore gums and a painfully 
distended cheek. 

“How much longer?” I asked my 
Yemeni traveling companions. 

“Wait until sunset,” they prom- 
ised. “You’ll see.” 

I looked at my watch. Sunset was at 
least three hours away. My enthu- 
siasm waning, I stripped off another 
bunch of bitter-tasting leaves from 
the branches I cradled m my lap, then 
added them to the already formidable 
wad inside my right cheek. Slowly I 
resumed my chewing. 

Needless to say, this was all in die 
name of field research. 

A leafy plant whose stimulative 
projxsrties have been likened to that of 
a mild amphe tamin e — or a double 
espresso — lchat is both ubiquitous 
and legal in Yemen, a remote and 
beguiling land of mud-brick sky- 
scrapers and fierce mountain tribesmen whose 
fashion accessories tend toward curved daggers 

and galashniWi v aaanlt rifles, 

Khat is a dominant feature of social life here, 
at least for men, who typically spend their af- 
ternoons in hours-long khat sessions with 

Most Yemenis say khat facilitate problem- 
solving wi thin tribes — such as negotiating 
“blood money” to be paid as compensation to 
famili es of murder vic tims — and helps sustain 
the country’s unique brand of consultative de- 
mocracy. Western visitors, including foreign 
c orre spondents, tend to parrot this line, descnb- 
ing khat-chewing as a custom that is no more 
harmful — indeed, perhaps less so — than 
cocktail hour back home. 

But among educated Yemenis, especially 
women, khat increasingly is seen as a drain on 
valuable hunum 1 agricultural and financial re- 
sources. That wouldbe troubling in any country, 
but it is especially so in Yemen, one of the 
poorest Arab countries, with an average per 
capita annual income of $341 . 

is becoming a social sickness,” said Un- 
dersecretary of Information Amal Aleem 
Sosowa, the highest-ranking woman in the gov- 
ernment. “I usually boycott such settings.” 

Khat is used by the lowliest goat herd and the 
loftiest gover nm ent minis ter. It defines the 

cases.” So she quit to start the first 
women's law firm in San's, with two 


Women are not the only critics. 


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rhythms of the day. Government offices typ- 
ically close at 2 PAL. allowing plenty of time fix' 

ically close at 2 PAL, allowing plenty of time fix 
the afternoon chew. In San'a’s old Jewish 
quarter, site of one of die busiest khat markets, 
buyers purchase their khat in plastic bags, then 
loop die bags over the handles of their daggers. 

called jambiyas, as they malm their way through 
ancient alleys to khat-chewing sessions m 
private homes. 

There they sprawl on cushions, puffing on 
water pipes or cigarettes and sipping from water 
bottles to combat the dehydration that is one of 
khat's side effects. Conversation, which flows 
rapidly at the outset, wanes as the khat begins to 
fake effect and the cbewers approach “So- 
lomon’s hour,” an introspective time that is 
often accompanied by the playing of the oud, a 
traditional stringed instrument The typical ses- 
sion lasts from three to four hours, after which 
the chewer spits out his wad of khat-mulch and 
goes home. 

“We do a lot of official work while chewing 
khat” said Foreign Minister Abdul Karim Iiy- 
ani “To say that this natio nal pastime, which is 
600 years old, would be affected significantly by 
any intellectual b acklash, I doubt it. Many in- 
tellectuals. including university proftssois, 
chew khat. You know it is the best material for 
staying up all night and studying.” 

Mr. Iryani, who has a doctorate in biogenetics 
from Yale University, admits to qualms about 
die use of precious farmland and groundwater 
far growing khat instead of fruits, grains and 
vegetables. But he said, **The economics of khat 
are so huge that mere preaching is not going to 

He added: “ft is the most profitable cash crop 
in the country.” 

ft is also a key component of Yemeni politics. 
Because candidates typically do most of their 
campaigning at khat sessions, political parties 
spend a fortune supplying khat to their con- 

stituents, according to Mr. Iryani, who also 
serves as secretary-general of the governing 
People's General Congress. “Without khat, you 
are not campaigning.” Ire said. 

During a visit one day to A1 Moaydib, a 
farming village near the mountain city of Taiz in 
southern Yemen, I interrupted one such session 
at the home of die local sheikh, a candidate for 
Mr. fryani’s party in the parliamentary elections 
that were boa April 27. 

Stepping over plastic-wrapped bags of khat 
branches — the leaves must be consumed within 
24 hours or they lose their potency — I entered a 
smoke-filled room occupied by about 30 men. 

Dressed, for the most part, in polyester sport 
coats over belted cotton robes — the national 
unifo rm — the sheikh's constituents sprawled 
languorously on cushions. 

Kalashnikovs and discarded branches lay 
scattered on the floor. 

Several years ago, a former minister 
of education, Ahmed Jaber Afeef, 
joined a handful of intellectuals in 
starting the first anti -kb at society. 
Among other things, the group urged 
the government to ban khat from its 
offices and institute an afternoon shift 
so civil servants would have an 
alternative to khat sessions. 

“We failed drastically,” Mr. 
Afeef said. “Everything goes for 
irhat What would you think of a 
society where the elderly and the 
young sit idly for five consecutive 
hours each and every day? 

He complained: 4 ‘The whole state 
chews khat-” 

Khat’s central place in the lives of 
ordinary people here was apparent 
during two days of conversations 
with Mr. Fayez, a 26-year-old army 
lieutenant who moonlights as a driver 
for a tour company. 

A swashbuckling type who wore a 
9mm pistol on his hip, Mr. Fayez said 
he used khat to stay awake on long 

McuiwAKia He starts chewing in the morning 
and keeps it up until sunset, Even 
when not on the road, he said, he chews khat 
daily with friends, sometimes while watching 
movies on his videocassette recorder. 

“By the time it is close to sunset evetybody 
has reached Nirvana and they want to live in their 
own sea of thoughts,” he said. 

Mr. Fayez estimated the daily cost of his habit 

at 700 riyals, about $6, or far more than he could 
afford if he had to rely solely on his army pay of 

T HE MEN barely acknowledged my 
presence; clearly, Solomon's hour had 
arrived. Feeling decidedly out of sync 
with the prevailing mood, I soot left 
The experience recalled a conversation sev- 
eral days earlier with Shada Mohammed, a law- 
yer in the capital. Miss Mohammed spent four 
years working for one of the country’s best- 
known lawyers. Because she is a woman. Miss 
Mo hamm ed was excluded from the daily khat 
sessions where the lawyer and his male partners 
conducted much of their business. « 

“This is a big problem for a woman," she 
said, “ft’s not nice when there are 20 men sitting 
on the flow and I have to go in and ask about 

afford if be had to rely solely on his army pay of 
6,000 riyals ($50) a month. He acknowledged 
that his khat-chewing leaves him little time for 
his wife and three children. 

The only exception is Thursday evenings, 
when he and his wife chew khat together. “She 
doesn't libs it that much, but she feels com- 
fortable because the khat keeps me next to her,” 
he said. 

Like most khat chewers, Mr. Fayez said, he 
rarely eats dinner — khat is an appetite sup- 
pressant — and tiie aftermath ofhis khat sessions 
are often tainted tty irritability and even para- 

“My grandfather used to say, 'When you 
chew khat, you are on top of the planet, but after 
you spit it out, the planet is on top of you,’ ” he 

On the basis of my own limited experience — 
during the long drive from Taiz back to the 
capital — I tend to share the doubts about khat 
True, eventually my senses seemed sharper and 
somehow the twisting mountain road, with its 
lack of guardrails and precipitous drops, began 
to seem Jess life-threatening. But four hours of 
masticating what looked like hedge clippings 
seemed a high price to pay. I’m sticking to 

TEHRAN— A state television report 
Monday raised the deat h toll in the 
earthquake Saturday in eastern Iran to 
4,000. _ . / 

banian officials had said previously 
that about 2,400 people died in the 7.1- 
degree quake in Khorasan Province and 
that about 6,000 people were injured. 

Germany pledged 500,000 Deutsche 
marks ($300,000) in relief Monday, and 
Japan offered humanitarian aid worth 

The German foreign minister, Klaus 
Kinkel, said in Bonn that his nation 
would not let a diplomatic dispute with 
Tehran get in the way of helping Ban’s 
earthquake victims. 

Mr. Kinkel said the sum would be 
given to the German Red Cross, which 
is planning to send a planeload of sup- 
plies to Iran on Tuesday for distribution , 
in quake-stricken areas. jtf. 

“Diplomatic considerations should • 
not be allowed to play a role here,” Mr: 
Kinkel told the HambmgwMoraemxKt 
daily, referring to a diplomatic feud set 
off by a Beilin court’s verdict that said 
Iran had ordered political killings in 
Germany. ‘ ‘There is no question that we 
should try to help in such an emer- 

Toe International Committee of the 

Red Cross has appealed fw $83 miHion 

for victims of the earthquake, which left 

50.000 people homeless. 

The Red Cross in Germany said it 
would be sending such supplies as tents, 
w arm clothes and water bottles, ft also 
said that 4300 volunteers working for 
the Red Crescent, its sister organization 
in Islami c countries, would distribute 
the supplies in Iran. 

President Ali Akbar Hashemi Raf- 
sanjani used a helicopter to visit several 
of the villages devastated by the earth- 
quake, state television said. 

Iranian Army unit* and members of 
the Pasdaran, or Revolutionary Guards, 
joined volunteers, relatives mid mem- 
bers of the Iranian Red Crescent Society 
in searching for survivors and caring for ^ 
the victims. 

Thousands of tents have been set up 
to provide shelter for people who lost 
their homes, but many villagers were 
forced to spend the night without shel- 

The International Committee of the 
Red Cross said Sunday it was sending 
50 metric tons of food, 9,000 tents, 

6.000 items of clothing and 1,000 

France sent a plane with 39 tons of 
relief supplies, and Saudi Arabia an- 

nounced it was sending tw o pl aneloads 
of supplies. (AFP, Reuters) 

, Reuters ) 

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i. Which Asset Management Strategy A instruments for Tomorrow? 

♦ Corporate P erf or ma nce. A comparative Analysis- Professor Lucian Bebchuk, Harvard University 

♦ European Portfolio. A Proven Management Style- M. Samuel Koto. M. D.flnaiL), LCF 

♦ A Global Approach to Investment Strategy- M. Bijal Shah, Strategist. Merrill Lynch 

♦ Investing in Emerging Markets- M. FJJ. van Loon. Managing Director. ING Bank 

♦ Managing Futures- Mr. Girard Iwema. Financial Advisor. Prudential Bache Securities 

♦ Investing in Derivatives- Mr. Paolo Faldim, Managing Director, MC Derivatives Program (Milan) 

♦ Asset Management Diversification: Currencies- Mr. Michel Samini. M.D. FTP Fores 

Z Luxury: Growth & Opportunities 

• Mis. MiidBe Maury. Qucf financial Officer- Hennis 

• Mr. Marc Willaume, Manager, Investor Relations- L.V.M.H Group 

• M- Luciano Abbati, Managing Director- Versace Parfums 

• Mme Katherine Bhuden, Deputy Managing Director- R£g£val fimagest 

• Mr. Edouard de Nazelie. Managing Director. Champagne Veuve Clicquot 

3. What are the Consequences of the Euro? 
a Mr. Lament Cohcn-Tanugi, Cleary. Gottlieb. Steen & Hamilton. (Paris) 

• Mr. Sean Hamlin. Citibank (London) 

• Mr. Lawrcrce B. Lindsay, Fr. Member of the Federal Reserve Board (Washington, D.C.) 

4L Hong Kong: Who will benefit from the Transfer of Sovereignty? 

• M. Joseph K. Lee. Regional Director (Europe)- Hong Kong Trade Development Council 

• Mr. Y. S. Daniel Lai. Lai, Chan, Lo & Partners (Hong Kong) 

« Mr. Marc Faber. Managing Director- Marc Faber Limited (Hong Koog) 

• Mr. J. Mdcfadlany. Managing Director- Julius Baer (Monaco) 

• Mr. Alexandre Vflegrain, Vice President, Groupe Vile grain (Paris) 

French Flight Attendants to Strike ANC Apologises to Panel Investigating Apartheid-Era Crime 

PARIS (AP) — Unions representing flight attendants of Air 
France and its domestic wing. Air France Europe, have called 
a two-day strike beginning Friday. 

The three unions called the strike to protest increased 
working hours and cutbacks. They represent 60 percent of the 
flight att e ndants of the two airlines, according to the Union of 
Civil Aviation Flight Attendants. Air France said traffic would 
not be disrupted. 

Air France and Air-India in Pact 

PARIS (AFP) — Air France and Air- India have concluded 
a strategic alliance, the first of its kind between an Indian and 
a European airline. Air France said Monday. 

Under the agreement, Air-India will move into the Air 
France hub at Charles de Gaulle airport northeast of Paris and 
offer passengers access to the Air France network. The move 
means Air-India will be able to offer direct flights to Paris; 
previously. Air-India passengers flew through Frankfurt 

Sicily Opera Returns After 23 Years 

ROME (AFP) — The Massimo opera house in Palermo. 
Sicily, which has been closed 23 years vainly awaiting the 
completion of restoration work, reopened Monday night with 
Claudio Abbado conducting the Berlin Philharmonic Or- 

The Art Nouveau-style opera house, one of the largest in 
Europe, was closed in early 1974. The building work was 
never finished because of bureaucratic imbroglios, Mafia 
involvement and negligence. The 1897 building reopened 
with only 650 seats of the 1 ,500 seats in use. 


CAPE TOWN — South Africa's governing 
African National Congress apologized Monday 
fix civilian deaths caused by its war against 
apartheid, saying some guerrillas had been 
impetuous. Hi-disciplined or badly trained. 

The ANC, the party of President Nelson 
Mandela that came to power after elections in 
1994, issued the apology in a response to 
questions by Archbishop Desmond Tutu’s 
Truth and Reconciliation Commission, which 
is investigating apartheid-era abuses. 

The ANC statement repeated the party’s 
position that its armed struggle against 
apartheid, started in 1960, had been a just war 
and that civilians had never been deliberately 

However, referring to bombings that killed 
civilians, the ANC said: “We regret the 
deaths and injuries to civilians arising from 
armed actions. We apologize to the next-of- 
kin for the suffering and hurt.” 

It said two such bombings — one at a 
Durban bar that killed three civilians and 
wounded about 60. and another outside air 
force headquarters in central Pretoria that 
killed 19 — had been mistimed. 

“At times insufficient training could have 
resulted in situations in which guerrillas were 

Hie statement was presented at a bearing of, 
the truth commission by Deputy Resident 
Thabo MbekL 

He said that while the ANC had nothing to 
hide, the truth commission ran the risk of 
putting the party's liberation struggle in the 
wrong light by concentrating too heavily cm 
ANC human rights abuses. 

“We must avoid the danger where, by 
concentrating on those particular and excep- 
tional acts,” he said, “we convey the im- 
pression that the straggle for liberation was 
itself a gross violation of human rights. ” £ 

Mr. Mbeki led a high-level ANC delegation * 
to the hearing, called to expand on an Initial 
presentation by the party in August last year 
about its anti-apartheid guerrilla war. 

The hearing was the first in which the ANC 
leadership has been questioned in public 
about abuses in its camps in exile, most of 
them in the early 1980s, its decade-long feud 
with the Inkatha Freedom Party and the killing, 
of civilians. 

The ANC has admitted executing at least 34 

people in Angola alone during the 1980s. 
Some were mutineers and others were accused 

of spying for the apartheid government. 
On the ANC's feud with the inkatha ] 

not able to ensure that explosions took place at 
the intended time." the statement said It also 

the intended time, the statement said. It also 
said that some ANC recruits lacked discipline 
or had made attacks in “anger.” 

On the ANC’s feud with the Inkatha Free- 
dom Party, in which about 15,000 people died 
from 1985 to 1995, Mr. Mbeki said his party 
had taken only defensive action against 

people he described as “warlords” finanwH 
by the apartheid government 

5. Monaco, the Newly Bom Financial Center? 

• M. Henri Fisone*, Government Coonoelior for finance & the Economy 

• M. Jean- Pierre C a mpa n a Director for Econom i c Expansion 

o M. Joseph- Alain Sauier. General Delegate, Monaco Banking Association 

• M. Eamotm McGregor. Managing Director. Moores Rowland (Monaco) 

4 Mr. Alain Fteaa. Fresia Consulting 

4 Mr. Raoul Boni, President, Real Estate Association of Monaco 

Continental 737 
Lands at Wrong 
Airfield in Texas 



Forecast (or Wednesday through Friday, as provided by AccuWeather. 

The Associated Press 

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Corpus Christi International 

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Warm and dry across fto Ireland and Scotland wUl 
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Associated Press 

. DENVOfc — Timothy McVeigh 
^^fo bomh the Oklahoma City 
fcsoerai building ‘ ‘to cause a general 
^ismg in America” and felt ius- 
tmed m killing the people inside 
because they were part of an “evil 
empire,’’ a former army friend test- 
111 ed Monday. 

- Michael Fortier, who has pleaded 
guilty to knowing about the plot, 
said Mr. McVeigh had told him he 
and Terry Nichols, who also has 
^een charged in the bombing, chose 
the federal building because that is 
•where the “orders were issued** in 
Jhe government’s siege of the 
branch Da vidian compound at 
Waco, Texas. 

- “He told me they wanted to bomb 

,die building on the anniversary of 
Waco,” Mr. Fortier said. “I un- 
derstood it to be the day the fire had 
engulfed the compound — April 

.. On die second anniversary of the 

Waco raid, a truck bomb exploded 
outside the Alfred P. Murrah federal 
building, killing 168 people and 
wounding more than 500 in the dead- 
liest act of terrorism on U.S. soil. 

Mr. Fortier testified that Mr. Mc- 
Veigh wanted to “to cause a general 
uprising in America, hopefully that 
would knock some people off the 
fence and cause them to cake ac- 

He said Mr. McVeigh considered 
all of the federal employees like 
“storm troopers” in the movie Star 

“They may be individually in- 
nocent but because they were pan of 
the evil empire, they were guilty by 
association." Mr. Fortier said 

As his former friend testified 
against him, Mr. McVeigh stared 
straight at the witness, leaning back 
in his chair, hands clasped on a 
crossed knee. 

Mr. Fortier drove with Mr. Mc- 
Veigh from Arizona to Kansas, and 

made a side trip to study the Okla- 
homa City federal building live 
months before the blasL 

On the first day of the trip, Mr. 
McVeigh pointed out a Ryder rental 
truck and said that was the type of 
truck he was thinking of using for 
his bomb. 

Mr. Fortier said he had urged Mr. 
McVeigh to spend his time talking 
about die government's transgres- 
sions, but Mr. McVeigh told him he 
was through talking. 

“He didn't think talking was ac- 
complishing anything. ' ' 

Mr. Fortier said Mr. McVeigh 
threatened to shoot anyone who got 
in his way after he set die fuse on the 
track bomb. 

He said Mr. McVeigh had shown 
him where he planned to put the 
truck, and an alley where be planned 
to park his getaway car. He said Mr. 
McVeigh wanted to make sure he 
had a building between him and the 

Mr. Fortier began his key testi- 
mony by detailing Mr. McVeigh’s 
anti-government views, particularly 
that “somebody should be held ac- 
countable” for the siege at Waco, 
and that the “government had de- 
clared war on the American pub- 

“We both believed that the 
United Nations was actively trying 
to form a one-world government," 
Mr. Fortier said, including plans to 
* ‘disarm the American public, rake 
away our weapons.” 

He also spoke of Mr. McVeigh’s 
devotion to “ 1110 X 011161 Diaries,” a 
racist novel about a war against the 
government that begins with the 
bombing of a federal building. 

In the months leading up to the 
bombing, Mr. Fortier said, Mr. Mc- 
Veigh sent him a letter saying he and 
Mr. Nichols “had decided to take 
some positive, offensive action.” 

“He told me that he and Terry 
were thinking about blowing up a 

building," Mr. Fortier said. He said 
Mr. McVeigh asked him to join then- 

“I said I would never do anything 
like that until there was a UN tank in 
my front yard,’ ’ Mr. Fortier said. 

He acknowledged to jhe jury that 

he pleaded guilty to lesser charges in 
die bombing, including failure to 
report die bombing plot to the au- 
thorities and lying to the FBI. He 
faces up to 23 years in prison. 

Mr. Fortier’s wife. Lori, testified 
under immunity earlier that Mr. Mc- 
Veigh had confided details about die 
plot months before the blast. She said 
be had selected the building because 
it was an “easy target" and bad used 
soup cans to demonstrate how to 
arrange die barrels of fertilizer and 
fuel for maximum destruction. 

Mr. McVeigh. 29, a Gulf War 
veteran, could get die death penalty 
if convicted of murder and conspir- 
acy in the blast. Mr. Nichols is to be 
tried later on the same charges. 

Prosecution Strategy: Swift and Sure Attack in Court 

By Jo Thomas 

' * New York Times Service 

. DENVER — The federal government’s 
case against Timothy McVeigh, which ap- 
peared to be based on coincidences, dubious 
.witnesses, and problematic physical evidence 
before his trial began, has turned out instead to 


be a compelling tale of conspiracy and re- 
venge told by the defendant’s family and 
closest friends and in words be wrote him- 

Now in the third week of Mr. McVeigh’s 
dial in U.S. District Court on charges of 
murder and conspiracy in the Oklahoma City 
bombing, the prosecution team led by Joseph 
Hartzler is moving so swiftly that prosecutors 
are hoping to finish their presentation by the 
end of die month. 

. Nothing about the trial was quick, until a 
jury was seated. Pretrial hearings took nearly 
two years and jury selection three weeks. 

The swiftness has not helped the defense. 
.Witnesses and evidence have beat presented 
So rapidly and questioned so narrowly that 
lawyers for Mr. McVeigh have found few 

openings to widen the scope of questions. 
There is a great volume of evidence, some 

had been scheduled to identify Mr. McVeigh. 
Lawyers familiar with [hie prosecution's 

large — like the twisted rear axle of a Ryder strategy viewed the paring down as an effort 
truck that sat under a black shroud until it was to strengthen the case by excluding nones- 
revealed to thejury — and some like the tip of sential witnesses and elements. 

a drill bit, so small it had to be enlarged under 
a microscope. 

Testimony expected this week from experts 
at the FBI laboratory is r»rtain to be chal- 

But it is die witnesses, including Mr. Me- ienged by the defense lawyers, who have said 
Veigh’s cousin, bis sister, the wife of one of that they would invoke a recent report by the 

his closest friends and the wife of his co- Justice D 
defendant, who have painted a portrait of a criticized 
man filled with 
rage at die gov- " 

eminent and ade- The testimony of two of the 

sire to exact re- . . . ■ 

veoge for the government^ principal witnesses 

deaths of the suffered little damage during the 

Branch Davidians . 0 

at Waco, Texas, defense s cross-examination. 

who planned and 

carried out the bombing. sives on 1 

In the months and weeks leading up to the But Ste 

Justice Department's inspector general that 
criticized the way the investigators transpor- 
ted and stored ev- 
^ "" ““““ idence in some 
tWO of the cases, including 

. . this one. 

Cipal witnesses Doubts have 

age during the ^ n V se d ab ° l *. 

*3. . 0 the reliability of 

wrma tion. tests for the 

— residue of explo- 

sives on Mr. McVeigh’s clothing. 

But Steven Buimeister. a chemist who will 

trial, Mr. Hartzler and his team of prosecutors be one of two principal witnesses on ex- 
seemed to be jettisoning witnesses and parts plosives evidence from the crime scene, was 
of their case. not among those criticized by the inspector 

These included Roger Moore of Royal, general. Linda Jones, the other explosives 
Arkansas, who was robbed ofguns, money and expert, is British and does not work in the FBI 
gold coins that tbe government said were used laboratory. 

to finance the bombing, and several men who So far, prosecutors have not stumbled with 

So far, prosecutors have not stumbled with 
FBI experts. Although Louis Hupp, an FBI 
fingerprint expert, so clearly loved his work 
that be had to be cautioned not to deliver a 
lecture from the stand, he identified two fin- 
gerprints from Mr. McVeigh's right hand on 
the receipt for a ton of ammonium nitrate that 
prosecutors said was used to make the bomb. 

And Cullen Scott, an FBI expert in the 
identification of tool marks, testified that a 

quarter-inch drill bit found in the home of 
Terry Nichols was used to drill open a padlock 
at a Kansas rock quarry where explosives and 
blasting caps were stolen in the fall of 1994. 
Mr. Nichols is to be tried later on the charges. 

The swiftness of the prosecution's present- 
ation was demonstrated last week, when pros- 
ecutors said they intended to bring 27 wit- 
nesses to present telephone records. Judge 
Richard Matsch, who does not want to ex- 
haust thejury, said be hoped tire prosecutors 
“had a conveyor belt” Spectators in the 
courtroom laughed, but the next day all 27 bad 
testified before lunch, and not a juror had 
dozed off. 

All tbe while, prosecutors have tried to 
make certain that tbe men and women on this 
jury, so far from Oklahoma City, do not lose 
sight of the horror of the bombing and its toll: 
168 dead, 850 wounded and scores of fives 
changed forever. 

The testimony of two of the government’s 
pri n cipal witnesses against Mr. McVeigh, 
both testifying under grants of immunity from 
prosecution, suffered little Hamay. during . 
cross-examination. One of the witnesses was 
Mr. McVeigh’s sister, Jennifer, whose cross- 
examination was sympathetic and brief. 

The other was the wife of Michael Fortier, 
who was an old army friend of Mr. Mc- 
Veigh’s. Her testimony was particularly dam- 
aging because she recalled laminating a false 
driver’s license for Mr. McVeigh under the 
name “Robert Kfing." That was tbe name 
used by the man who rented the Ryder truck 
that carried tbe bomb. A cornerstone of the 
defense case will be to prove that Mr. Mc- 
Veigh was not that man. 


Clintons Appeal to High Court 

WASHINGTON — Asserting aoorney-client roivilege, 
lawyers for the White House asked the Supreme Grant on 
Monday to protect tbe secrecy of conversations Hillary 
Rodham Clinton had with government lawyers about the 
investigation into tbe Whitewater real-estate affair. 

The administration asked the justices to overturn a 
federal appeals court order that notes of White House 
lawyers’ conversations with Mrs. Clinton be turned over 
to a grand jury that is investigating Whitewater. 

The petition said that unless the appeals court order was 

overturned “the next step would be for the grand jury to 
require the White House counsel or other government 
attorneys to testify about conversations with the president 
or other government officials concerning tbe legal advice 
they have given and the information they have gathered in 
their internal investigations." 

The 8 th U.S. Circuit Court of Appeals ruled, 2-1, last 
month that the White House could not invoke attorney- 
client privilege to cover those notes. (AP) 

Republicans Take On Census 

WASHINGTON — Republican leaders in Congress 
have hardened their opposition to the use of statistical 
sampling to arrive at final population figures in the next 
census, setting up a showdown with the White House on 
an issue of huge political and social importance. 

A letter to Martha Farnsworth Riche, the census di- 
rector, voiced opposition to “statistical schemes that 
compromise accuracy for the sake of economy." Tbe 
bureau wants to use the technique three years from now. 

Tbe letter was signed by Senator Trent Lott, die 
majority leader, Senator Don Nickles, the assistant ma- 
jority leader. Newt Gingrich, the speaker of the House, 
and Representative Dick Armey, the majority leader. 

“We must physically count each and every Amer- 
ican.” they wrote, pledging enough money to do that, 
without specifying an amount. 

The Census Bureau wants to count 90 percent of the 
households in a given area, then use that data to calculate 
what tbe remaining 10 percent would presumably be 
like. (NYT) 

Dashed Hopes of the Privatizers 

WASHINGTON — The administration has indicated 
that it will not allow states to turn over a vast array of 
social service programs to private companies to ad- 
minister. dashing the hopes of many large corporations 
and political conservatives who saw the new welfare law 
as an opportunity for massive privatization. 

The administration told officials in Texas, tile fore- 
runner in privatization efforts, that they could proceed 
with some plans to work with the private sector, but that 
only state employees could determine who was eligible 
for Medicaid and food stamps. 

The decision makes it impossible for Texas to create 
the “one-stop shopping" welfare service it had en- 
visioned, where private companies would handle several 
social service programs under one roof. (WP) 

Quote /Unquote 

Samuel Berger, the president’s national security adviser, 
on Mr. Clinton’s Caribbean visit and its series of agree- 
ments: “We don’t deal with strategic arms control with the 
Central Americans, so we tend to look at these things as 
small issues. To them, they’re large issues." (WP) 

... ^ 

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Ian K»UThr A*wd**J 

A woman and child after they were rescued from tbe Miami Beach high-rise. 

_ .... • A reggae and rap star, Ricky (Super- 

Away From Politics cat) Tresaud, 31, was shot and seriously 

wounded early Monday during a robbery, 

•Hundreds of people stumbled through New York police said. The two robbers 
smoke- filled stairwells and hallways as took cash and jewelry valued at $1,000 and 
they fled an electrical fire at a 17-story fled. _ _ (AP) 

condominium complex in Miami Beach, • A laundry machine in a Los Angeles 
Florida. Ten people were sent to the bos- laundromat tore a 4-year-old boy’s arm off 
pital, mostly suffering from smoke inhal- at tbe elbow, and the child underwent emer- 
ation; 19 were treated at the scene. (AP) gency surgery to reattach the limb. (AP) 


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City Dwellers Rush to Purchase 
A Piece of Nowhere in Nevada 

For city dwellers tired of soot, smog and 
congestion, it seemed a dream: to own a 
square mile of land in tbe vast empty ex- 
panses of Nevada, far from the madjng 
crowd, in a place without squealing brakes 
or barking dogs or slamming doors, where 
at night as one admirer put it nie stars 
come all the way down to the ground. 

A recent land auction by Nevada Land & 
Resource Co., which owns more than 1 
million acres in the region, drew thousands 
of inquiries, and serious bids for moretnan 
half of the lOlparchLs available, reKg 5 ®® 
Los Angeles Tunes. Bids as low as$39,iXXi 

were accepted. - 

The parcels, each one square mile, are m 
the cowboy coantry of northern Nevada, 50 
miles or more from Reno, ^ 

any size. Some parcels offer bills and ju- 
niper trees and views of thei Siam 
arebarren salt flats. But tot s OX. 
some bidders, who want to 
their all -terrain vehicles — or just enjoy the 

S °TbCTe are some catches, however. Buy- 
os are allowed to build, hunt OT P te y 
their land, and to draw well water for their 
own use. But the rights to minerals or 
aquifers on tbe proper^ 
ous corporations, wluch could 

roads and hum “V™***; 
And of coarse, there are no power lines. 

phones, water or gas. No problem, say the 
buyers. “You can sit out there and stare at 
nothing fera long, long time, "said Heather 
Baird Donovan, a San Francisco writer. 
Added her partner in die deal, Don Asher, a 
career adviser: “If you want to live out in 
tbe middle of nowhere, this will do the 

Short Takes 

May 7 was Work at Home Day In 
California, so proclaimed by the local tele- 
phone utility, eager to encourage workers to 
embrace the (phone-dependent) technol- 
ogies that can allow them to escape the 
office and go about their business wife the 
TV on and the dog underfoot. An estimated 

3.5 milli on Californians already work from 
home. The number increased after the 1994 
earthquake, when transit was disrupted and 
some offices were damaged. That helped 
bring the word * ’telecommuting" into fee 

At 64, after 15 years of faithful 
service, Roger Reitz is finally giving up his 
paper route in Manhattan, Kansas. Reitz, 
who took up fee route when his children 
dropped it, decided feat his new position as 
a riity commissioner would require too 
much time — that and his other job as a 
physician. The good doctor can’t really 

explain why he kept up fee motor-scooter 
route, except that he liked doing something 
so different from his medical work. After a 
while, he says. “I kind of got into fee 
rhythm of it.” Subscribers say they will 
miss having to cheerful doctor make his 
rounds. Their visitors, they say, were most 
impressed when the paper was delivered by 
rSian dressed (occasionally) in a three- 

piece SUl i nierjusioml fferojd Tribune 

* i i ir 


~1 ~ 


Is China Coveting ‘Lost’ Lands? A Wary Asia Looks On 

By Michael Richardson 

Intemiaanal Herald Tribune 

\ HONG KONG — While the han- 
[dover of Hoag Kong to China next 
nQooth will have no direct impact on the 
[mflitay balance of power in Asia and the 
Pacific, some officials and analysts 
[worry that it may embolden Beijing to 
[intensify its quest to recover other 
'“lost” territory in the region. 

| Such concerns reflect the view that 
[Chinese policy, although ostensibly fo- 
cused on economic modernization, is 
[driven by a determination to recover 
[outlying parts of an historical empire 
ithat Beijing insists were taken from 
[China by stronger powers when it was 


i “We know that China will regain 
Hong Kong fiom Britain in 1997 and 
; Macau from Portugal in 1999," an 
[Asian diplomat said Monday. “But what 
[will it choose as the next irredentist 
j target and when: Taiwan, Northeast Asia 
lor Southeast Asia. That's what worries a 
,‘lot of us.” 

1 China insists that it will never use 
‘force or the threat of force to recover lost 

territory or dominate its neighbors. But 
nations in the region are not reassured. 
Beijing farmed fears Sunday when a 
by President Jiang Zemin ap- 
i on the front page of the Peopled 
ly in which he called for a strength- 
ening of patriotic education to help make 
China more powerful. 

The speech was made to senior party 
officials in October. But it was published 
just ahead of the Hong Kong handover as 
simmering disputes between China and 
the Philippines over an island group in 
the South China Sea, and between China 
and Japan over another island group in 
the East China Sea, flared anew. 

‘ ‘The Chinese people have never yiel- 
ded to invaders, ami they have the glor- 
ious tradition of ardently loving free- 
dom, seeking progress and guarding 
national dignity and state sovereignty,” 
Mr. Jiang said. 

Fidel Ramos, president of the Phil- 
ippines, the Southeast Asian country 
closest to Hong Kong, said recently that 
China's rise as “an economic colossus 
with increasing military capabilities’’ 
aroused a number of security concerns. 
Among them was whether Beijing 

would “decide to pursue hegemony and 
carve out a sphere of influence of its 

Mr. Ramos said that Beijing’s cl aims 
to sovereignty over die Spratly Islands 
and a vast surrounding area of the South 
China Sea stretching deep into the mari- 
time heart of Southeast Asia was “the 
litmus test of whether China — as a great 

clare, in the form of nonaggression treat- 
ies or similar agreements, a commitment 
ro resolving (he claims by peaceful 

China has such disputes with Japan, 
d Nc “ 

Beijing insists it will 
never use force — but its 
neighbors aren’t so sure. 

power — intends to play by international 
rules or make its own." 

In a recent essay in Tune magazine. 

‘ :Jai 

Kazuo Ogura, the Japanese deputy min- 
ister for foreign affairs, warned of the 
danger of a “chain reaction that might 
follow a military incident'’ over con- 
flicting territorial and maritime claims 
between China and other Asian states. 

‘ ‘Since it has tenitorial disputes with 
most of its neighbors," he wrote, 
“China and those countries should de- 

Taiwan. South and North Korea, the 
Philippines, Vietnam. Malaysia and 

Most of the land territory involved is 
in the form of small, mainly uninhabited 
islands, atolls and reefs. But such beach- 
heads have become increasingly impor- 
tant to all claimants because they are the 
key to control of valuable resources, 
including fisheries, oil and gas, in large 
areas of surrounding water and seabed. 

China staged missile tests and large- 
scale military exercises to try to in- 
fluence the outcome of Taiwan's pres- 
idential elections in 1996 and deter what 
it saw as the island’s moves toward 
independence. But it has halted its saber- 
rattling since then. Beijing has also 
shown restraint in its dispute with Japan 
over the contested islands in the East 
China Sea, known as the Senkakus in 
Japanese and the Diaoyus in Chinese. 

With Taiwan and Japan having tile 
military strength to defend their territ- 

orial claims, some analysts believe that 
China has decided to use its military 
superiority to try to inti mid ate rival 
claimants in the South China Sea, such 
as the Philippines and Vietnam, that 
have relatively weak armed forces. 

Manila protested last month to 
Beijing over what it said was an in- 
trusion by Chinese naval ships near two 

• « a «... DbMmmrm f m nn c in 

UJCijp/4UIJ9. % — 

Beijing said were on a scientific mission, 
left the area shortly after Manila pro- 
tested, although the Chinese Embassy m 
the Philip pines insisted that Beijing had 
every right to send them there to conduct 
peaceful activities “within the waters of 
its own jurisdiction.' ’ 

A gnnilnr dispute erupted in March 
between ffrnia and Vietnam after 
C hina ’s National Offshore Oil Corp. po- 
sitioned an oil rig and accompanying 
vessels in waters each claims in the 
South C hina Sea between China’s Hain- 
an Island and the coast of central Vi- 
etnam. After a standoff of several weeks, 
China said it had withdrawn the rig 
following completion of exploration 

A Korea First: 
14 Defectors 
iUse a Boat to 
jFlee to South 



•; va, X* v«; -V. 

^ if'i, 

| CatqMbf Ow Staff FrmiDatxadKx 

; SEOUL — Fourteen members of two 
•Noth Korean families defected to South 
[Korea by sea Monday. The Defense 
[Ministry said they were the first North 
■Koreans to flee to the South by boat 
! The boat carrying the North Koreans 
[was found Monday afternoon among a 

■fleet of Chinese fishing vessels oper- 
rong-do, the western - 

[ating near Paekryong 
[most South Korean island, near the sea 
•border with North Korea. 

[ As South Korean Navy patrol boats 
[approached, the North Korean boat 
■moke away from (he Chinese group, and 
[its occupants signaled their intention to 
[defect, the ministry said. 

[ The defectors were five men, five 
[women and four children, the ministry 
■said. Eight of than were family mem- 
bers of the ship's captain. Ahn Sung 

; Captain Ahn. 48, his wife, mother, sod 
!and two daughters formed one family. 1 
The other was led by the boat's engineer 
and included has 2-year-old grandson. 

- “If the information provided by the 
captain is true, it would be the first 
defection direct by sea from North 
Korea,” said a Korea Maritime Police 
spokesman, Chung Moo Chung. 

The boat was bung towed to the port 
of Inchon, west of Seoul 

Ministry officials quoted the defect- 
.ors as saying they left Shinuiju, a North 
Korean port city on the border with 
China, three days ago to defect 

About 150 North Koreans have de- 
fected to South Korea in the past three 
years, all of them via China or across the 
demilitarized zone separating the two 

This was the largest group of North 
Koreans to defect to South Korea so far 
this year. In December. 17 North 
Koreans — 16 members of a single 
family and a friend — defected to Seoul 
through China. 

International aid organizations have 
said that hunger is widespread in North 
Korea and that many people are eating 
wild grass and tree bark, to survive. 

Separately, the South Korean Red 
Cross said it planned to begin shipping 
15,000 tons of com to North Korea next 

In another development, a Pyongyang 
defector living in Seoul said that North 
Korean authorities foiled a plot by cadets 
ax a military academy to assassinate the 
North Korean leader, Kim Jong II, in 

The cadets planned to use an ax to kill 
Mr. Kim during a martial-arts display, 
the defector wrote in an article published 
by South Korea’s Nae Woe Press, which 
monitors North Korea. 

But the plot was uncovered, and the 
ringleaders were executed, the article 

It added that there had been numerous 
plots since the 1 970s to kill the country 's 
former leader, Kim D Sung, who died in 
1994. (AP. Reuters) 

Top U.S. Military Officer on Beijing Mission 

Robyn Bctt/A^encc ftmcp- P tcuc 

General John Shalikashvili, chairman of the Joint Chiefs of Staff, 
left, arming Monday on a mission to improve military ties with 
China. He was the roost senior U.S. military officer to visit since 1983. 

MANTRA: Asia Taps Its Foot to U.S. Tune 

Continued from Page 1 

to hill us to sleep," he said. 

P. Chidambar am, the Indian finan ce 
minister, joined his colleagues in v ow- 
ing to press ahead with cutbacks in gov- 
ernment spending. “We will bring about 
further reductions in the fiscal deficit, 
without impairing the capacity to en- 
hance investments in key sectors of the 
economy, particularly the social sectors 
such as education and health." he said in 
:h at the meeting. 

: Jlgjid, the Mongolian central 
bank governor, also vowed to pursue 
economic reforms. 

In 1996 Mongolia accomplished a 
peaceful transition to democracy from 
75 years of communism. In less than a 
year since a landmark general election it 
has liberalized prices and drawn up am- 
bitious plans to privatize state-owned 
industry and reform its banking sector. 

In the past, governments in the region 
routinely attributed economic slow- 
downs to business cycles. But they have 
come to recognize that problems related 
to excessive government control of the 
private sector are among the biggest 
barrios to long-term economic devel- 
opment. said Mr. Fager of the Institute of 
International Finance, which represents 

financial institutions worldwide. 

“Once governments take the first step 
toward full liberalization, they find the 
markets, then impose pressure on them 
to keep walking, ’ Mr. Fager said. 

Still, many of the senior officials who 
have overseen a switch In emphasis from 
central planning to market-oriented 
economies reseat what they see as 
Washington’s heavy-handed marketing 
of its economic policies. 

“The United States is such a dom- 
inant presence in die Asia-Pacific region 
that whether we embrace its leadership 
or not, it is so pervasive that we have no 
choice but to -adopt its economic 
policies," said a senior official from Fiji, 
who asked not to be named. 

Since the collapse of the Soviet Union 
left the United States as the sole su- 
perpower, it has grown arrogant, dis- 
playing “blunted sensitivity" to the 
needs of less developed countries, the 
official said. 

For his part, Timothy Geithner, head 
of the U.S. delegation to the development 
bank meeting, used his speech to ur^e the 
bank to exert greater pressure on regional 
governments to promote liberalization. 

“The bank can play an increasingly 
visible and catalytic role in support of 
the private sector," Mr. Geithner said. 

■s TheCrans 
1 Montana Forum 

Switzerland - VIII yearly meeting 
**■•* 1997, JUNE 26 to 29 
The Reconstruction of Beirut and Lebanon 

he Crans Montana Forum offers an exclusive business 
reeling at the highest level of economic decision makers 
mind Mr Rafik Aj-Hariri, Prime Minister of Lebanon and 
►p Ministers of his Government. All Issues related to the 
■construction of Lebanon and its place in the regional 
r-operation will be studied: exchanges, foreign invest- 
ent. Incentives, energy, infrastructures, financing, air- 
arts, telecom, tourism, transport, banking etc 
le Crans Montana Forum is the only Forum with a strict- 
limited access where you can really meet govern men- 
1 representatives, officials and decision makers from all 
rer the World (Including international Organisations), 
ssides the traditional participation of Europe - Western, 
»ntral and Eastern - Central Asia and the South 
edlterranean - more than 60 countries represented - 
e 1997 Forum welcomes also top level delegations from 
•Laras, Egypt Estonia, Kirghistan, Morocco, South 
Hca, Turkey, and Caucasus States (focus on transport & 
ipply of energy). 

phone (+41 22) 791 70 40 

ta (+41 22) 791 70 41 

China Puts Satellite Into Orbit 


BEIJING — China launched a domestic telecommuni- 
cations satellite into orbit Monday. 

International satellite insurers bad been waiting for (he 
launching of the Dongfimgbong-3 rocket after the failure of 
two major launching last year, saying a third loss could further 
drive up inflated premiums on Chinese launchings. 

A Long March 3A rocket fired the Dongfangbong (which 
means ‘‘toe East is Red") satellite into orbit just after mid- 
night from the Xichang launching center in southwestern 
Sichuan Province, China Aerospace Corp. said. The satellite 
was built by China Great Wall Industries Corp. 

“The rocket launch was entirely successful." China 
Aerospace said. 

“This is a major step forward for China Great Wail," said 
John Salaverry, president of the space - insurance brokerage 
concern ISB Asia/Pacific, based in Singapore. 

“After taking a long time to make sure that everything was 
right, they've finally done it,’ ’ he said. 

The launching was preceded late last year by a modest 
victory for China's space industry when it launched and then 
successfully retrieved a scientific research satellite. 

A $230 million Intelsat 708 satellite was lost in February 
1996 when its rocket veered off course and exploded, killing 
six people on the ground. 

Last August, a U^.-builtdomesnccommumcations satellite 
was stranded in a useless orbit by a Long March 3 rocket 

Industry sources said last week that the launching of the 
Doogfonghong-3 had been rescheduled from May 5 because 
China’s space authorities wanted to be sure all would go well. 

ASIA: Western’ Rls Have an Eastern Face 

Continued from Page 1 

novel comes from the West, even if most 
of these now universal fashions were 
first popularized in richer Western coun- 
tries. If trends are set by Japan, this is 
because the Japanese were the first to 
break into the top ranks of technology 
and trade worldwide. Others will follow 
in other regions. 

Southeast Asian or Chinese model. We 
are building enclaves of super-privilege . 
What you’re having is not a global vil- 

but a series of global ghettos. The 
estera elite is not the 

A U-S. diplomat said he was struck by 

this trend when a Korean radical wearing 
jeans and smoking an American cig- 
arette lectured him on the perverse ef- 
fects of American influence. Many 
Southeast Asians have abandoned tra- 
ditional costumes few business suits not 
because Western business people dress 
that way but because the Japanese and 
Taiwanese do. 

Take a walk in Phnom Penh almost 
any time of day, and there will be chil- 
dren sitting on the high stools of video- 
game parlors where the bloodthirsty fare 
is Japanese-produced. Express boats on 
Borneo’s rivers show Asian-made films 
in which heroes kick around the faces of 
bad guys without even smudging their 
Italian shoes. In the remote Himalayan 
kingdom of Bhutan, where television 
receivers are not allowed, the police 
blamed videotapes from Hong Kong, 
with their slick and sociopathic violence, 
when a Buddhist abbot was murdered a 
few years ago by local criminals who 
planned to steal an unlocked temple's 

All over South Asia, middle-class par- 
ents worry about the hugely prolific In- 
dian film industry with its debased or 
caricatured women and those silk-shir- 
ted toughs living glamorous lives. As for 
karaoke and what it has done to tra- 
ditional forms of local entertainment, the 
less said tire better. 

“I do believe that mindless imitation 
of Western patterns of development is an 
exceedingly serious problem, but you 
have to accept the responsibility for the 
wants it," said Palagummi Sainath, au- 
thor of “Everybody Loves a Good 
Drought," a sharp critique of govern- 
ment and the establishment in India, 
based on his reporting from some of the 
poorest villages in the country. 

“It’s a- simplification to reduce 
everything to the word ‘Westernization,’ 
and a bit foolish to make the argument 
that anything and everything that comes 
from tne West is bad," said Mr. Sainath 

sole villain." 

Bnt the myth of “Americanization" 
dies hard, said Francis Seow, a former 
solicitor general of Singapore who has 
been at the Harvard Law School ever 
since he had a falling-out with the coun- 
try’s senior minister, Lee Kuan Yew, 
and with his conservative “Asian val- 

. Mr. Seow went to jail for his out- 
spokenness.- Politicians and activists, 
struggling to keep alive Third World 
causes, continue to demonize the West 
The Burmese military junta, now under 
- an investment embargo by the Clinton 
administration, is waging an anti-West- 
ern campaign in the government-con- 
trolled news media. 

“Singapore leaders tend to speak 
smugly of family values as if they are an 
exclusive preserve of Asian countries,’ ’ 
Mr. Seow said. “I have personally seen 
American children who love and are 
respectful of their parents and elders, 
and I am told that in the heartland of 
America — the real America — these 
values are the norm rather than the ex- 


ty Asian-Americans resent Asian 
leaders talking about Asian values as 
much as they object to Americans ste- 
reotyping Asians as invulnerable over- 

“The Lee Kuan Yews talk as if there 
were an Asia that is homogeneous, "said 
Sirmit Ganguly, a political scientist at 
Hunter College of the City University of 
New York. “As if the steppes of Central 
Asia were the same as the plains of 
Bengal and die plains of Bengal the same 
as die forests of Sarawak." 

There is a new catchword in the de- 
veloping world, however, to cover cul- 
tural wounds not believed to be strictly 
Western, Eastern or self-inflicted; the 
word is globalization. 

It wraps up all the fears of somehow 

losing control to foreigners, felt as much 
by Americans who hate the United Na- 
tions and immigrants as it is by Indians 
or Filipinos who feel threatened by the 
International Monetary Fund, Kentucky 
Fried Chicken, Joe Camel or Time 
Warner. That shrinking world everyone 
was so proud of a decade or so ago has 
become a cultural strangler. 

who added that his most influential and 
respected teachers in Madras were Euro- 
pean Jesuits. “Millions of things have 
moved both ways over the centuries 
which we all live with and are com- 
fortable with. 

“What I see is something different,” 
Mr. Sainath said. "The super-rich are 
seceding from their nations. So what you 
have is not a Western or East Asian or 


Appears every Wednesday 
in The Intennarket. 

To advertise contact 
Sandy O'Hara 
in our New York office 
Tel: (1-2 12) 752 3890 
Fax: (1-212) 755 8785 
Or your nearest IHT office 
or representative. 


Test in Parliament 
For Taiwan Rulers 

TAIPEI — One year after be was 
sworn in amid a wave of public J 
adulation. President Lee Ten-hui’s 
standing is at an all-time low, and 
his government faced its toughest 
challenge Tuesday, when the leg- 
islature was scheduled to debate a 
no-confidence motion sparked by a 
wave of violent crime. 

Mr. Lee's governing Nationalist 
Party said it was confident its four- 
seat majority would see it through. 

A defeat would be unprecedented, 
but largely symbolic. Par li a me nt 

cannot force the prime minister or 
his cabinet to resign. 

A sense of society adrift has taken 
root following three high-profile 
murders, including the kidnap 
torture and killing of the 17- 

old daughter of a much-1 

Taiwanese singer and actress. It is 
compounded by a perception that 
the Nationalists have failed to make 
good on a pledge to root out cor- 
ruption and underworld influence in 
politics ami business. (AP) 

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— Air r 

7 Lost on Everest 

and — Seven climbers were miss- 
ing and feared dead after a whiteout 
stranded them just below the sum- 
mit of Mount Everest, an expedition 
official said today. 

The seven did not return Sunday 
from the north face of Everest, audit 
was believed they had died in a 
blizzard about 200 meters (650 feet) 
from the peak, said Sue Kelly, 
spokeswoman for a New Zealand 

The missing climbers were be- 
lieved to include three from Kazak- 
stan, o ne German and a Sherpa 
guide, she said. (AP) 

China Bans Studies 
Of Human Cloning 

BEIJING — The Chinese 
Academy, of Sciences has banned \ 
all research into the cloning of hu- 
mans, saying sexual reproduction 
was fundamental for survival of die 
species, die official Xinhua news 
agency repotted Monday. 

“Banning the use of cloning to 
copy humans is absolutely neces- 
sary to maintain ethical morality, 
which holds together today's hu- 
man society," the agency quoted 
Xu Zhihong, the vice president of 
the academy, as saying. (Reuters) 

Philippines Vote 


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MANILA — Filipinos voted 
Monday in what officials said were 
the country’s most peaceful local 
elections. About 25 million out of 
36 million registered voters cast 
ballots to pick 335,000 village lead- 
ers in *e Philippines’ 7 77 

At stake are seats on 42,000 cit- 
izens’ assemblies, called barangay, 
as well as the posts of village cap- 
tain. Complete results are expected 
in two or three days. (Reuters) 

For the Record 

An Indian rebel group, Maoist 
Communist Center, kidnapped 
and lolled at least 11 people be- 
lieved to be caste rivals in the state 
of Bihar on Monday, United News 
of India said. (Reuters) 

The authorities in the restive 
Xinjiang Uygur Autonomous Re- 
gion of northwestern China 

gion or norm western unna ex- 
ecuted a Muslim on April 28 for 
destroying a military jeep last year 
with a bomb, a court official said 
Monday. (Reuters) 

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screenwriter Eric 
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Solution to Puzzle of May 12 


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British U-Turn on EU Social Rules Has Little Effect - JVow 

pu zd e 

By Barry James 

/"‘cnuuionoi Herald Tribune 

; For months, Britain's former Con- 
servative ^overament had been warning 
about an invasion of Brussels bureau- 
CTacy and claiming that its “opt out” of 
European social rules had saved the 
country 500,000 jobs. 

• Bat when Foreign Secretary Robin 
Cook announced this week that Britain 
would sign the European Union's Pro- 
tocol cm Social Policy as one of the first 
measures of tbe new Labour govern- 
ment, it seemed apparent that the threat 
may have been somewhat hollow. 

*he only immediate effect of adopt- 
ing the agreement, also known as the 
“social chaster,” is that larger muJ- 
ti na fionaj companies operating in two or 
more European states must hold a con- 

sultative meeting with employees at 
least once a year and that companies 
should allow up to three months of 
unpaid parental leave. 

Obviously, though, this body of so- 
cial legislation will grow — a devel- 
opment that, according to Kenneth 
Minogue, emeritus professor at the Lon- 
don School of Economics, could even- 
tually impose heavy burdens. 

“For the moment its effect will not be 
particularly serious,” Mr. Minogue 
said, “but the social chapter is some- 
whar dynamic, and undoubtedly there 
will be interest groups pressing in one 
way or another to extend its range — and 
that is where I think the danger lies.” 

Several larger British companies 
already have adopted tbe measure re- 
quiring workers to be informed and con- 
sulted about their aims and policies. 

United Biscuits Ltd., the first major 
British company to heed the European 
directive, scud the experience had been 
“constructive.” - 

“A number of ideas have emerged 
which we have been able to take on 
board,” a spokesman said. “It has en- 
abled the work force to focus positively 
on managing change.” 

A spokesman for the glassmaker 
Pilkington PLC said its experience in 
putting the rules into effect had been 
positive but was not an alternative to 
other methods of informing tbe work 
force about company policies. 

Labour’s reversal of British policy 
will enable the social policy measures to 
be written into the main Treaty on Euro- 
pean Union when it is revised at the 
conclusion of tbe EU’s intergovern- 
mental conference next month. 

The social agreement had to be at- 
tached as a separate protocol to the 1992 
Maastricht treaty because of Britain's 
insistence on opting out of the measure, 
which it called anti-competitive. 

that freedom from EU regulations had 
netted Britain a far lower unemployment 
rate than in other European nations. The 
14 countries that signed the agreement 
argue that the opt-out gave London an 
unfair competitive advantage. 

Continental politicians say Britain's 
success in creating jobs has masked one 
of the highest rates of income disparity 
in the European Union. 

Public information in Britain never 
accurately reflected the limited scope of 
the social agreement, which most 
people blame for other EU regulations, 
such as a European Court directive fix- 

U.K. Foreign Policy 
Takes Activist Turn 

Cook Brings End to Tory \ Isolation 9 

CamfUaS by Our Stag Front Dvpascka 

LONDON — Foreign Secretary Robin Cook placed 
human rights, Europe and arms control solidly at the 
heart of British foreign policy Monday, saying the 
‘ ‘not-so- splendid isolation” of the previous Tory gov- 
ernment was history. 

In his first formal press conference since Labour's 
landslide victory May 1, Mr. Cook said be aimed to 
make Britain, which takes the EU rotating presidency 
in January, “a leading player in a Europe of in- 
dependent nation-states.” 

But be reiterated that it was “unlikely” that Britain 
would join tbe single European currency in die first 
round in 1999, “nor probably in the year after,” and 
would in any case hold a referendum before joining. 

“We shall work with others to protect the world’s 
environment and to counter the menace of drugs, 
terrorism and crime,” Mr. Cook said, outlining a 
“mission statement” for what he called “a busi- 
nesslike approach to government.” 

He added that Britain’s foreign policy “must have 
an ethical dimension and must support the demands of 
other peoples for the democratic rights on which we 
insist for ourselves.” Thus, he said, “the Labour 
government will pit human rights at the heart of oar 
foreign policy ana will publish an annual report on our 
work in promoting rights abroad.'* 

Mb. Cook said Britain would not sell arms to gov- 
ernments that might use them for internal repression 
and would seek to prevent “those contracts going to 
third countries.*' Despite Britain's being one of the 
world’s top four arms exporters, an ‘ ‘active role in aims 
control” would be among his top priorities, he said. 

The foreign secretary also said be would- travel to 
Washingtonm the next 10 days to meet with Secretary 
of State Madeleine AlbrigjhL 

Mr. Cook began a high-profile diplomatic offensive 
last week with trips to Paris and Bonn to underscore 

Joingy BtgjO/Agaia: Paoa flum 

Robin Cook stressing human rights, Europe 
and arms control as he met the press Monday. 

London’s determination to make a new start in its 
ttentingc with the European Union. But he denied that 
the emphasis on mending fences with Europe meant 
that trans-Atlantic ties would be neglected. 

“It is a false dichotomy that you have to choose 
Europe or America,” he said. “The truth of the matter 
is that Washington does not want a Britain that is 
marginalized offshore from Europe.” 

In an interview on BBC radio, Mr. Cook was pressed 
to reconcile his emphasis on ethics with the importance 
to British industry of arms safes to a number of 
governments with poor human rights records. 

“There are some very serious cases of flagrant human 
rights abuse that must be tackled,” be said. “We are 
quite deariy establishing tbe principle that if we demand 
for Britain h uman rights and democratic principles and 
democrats government, then we must support those in 
other countries who arc also doing die same.” 

In the case of Nigeria, fra 1 example, he said Labour 
had a long-standing policy of supporting “tough eco- 
nomic sanctions on a regime winch is among the most 
brutal in the world.” (AFP. AP, Reuters ) 

Both Sides Cheered 
By Results in Italy 

By Vera Haller 

Washingian Post Service 

ROME — Official results Monday from local elec- 
tions that were viewed as an arbiter ofpublic support for 
Italy’s year-old government were divided almost 
equally between the center-right opposition and the 
center-left governing parties. 

In the most closely watched mayoral contests, Gab- 
riele Albertini, tbe candidate for the center-right Free- 
dom Alliance led by former Prime Minister Silvio 
Berlusconi, won in Milan, Italy's financial capital. In 
nearby Turin, tbe center-left Olive Tree incumbent, 
Valentino Caste 11 ani. narrowly held onto office after a 
strong challenge by an opposition candidate. Both 
sides interpreted the results as favorable. 

Final tallies gave center-left candidates victories in 
four dries, and the same number io the opposition. The 
Northern League parly, which has been leading an 
autonomy movement, woo in two medium-sized cities, 
recouping somewhat after Milan's incumbent mayor, 
Marco Fonnentim, a League member, was ftKminatpri 
in the first round of voting two weeks ago. 

The local elections were widely seen as a test for 
Prime Minister Romano Prodi, who has led tbe center- 
left coalition for die past year and who is about to open 
negotiations among political parties on revising the 
welfare system. The revision is needed for Italy to join 
Europe’s single currency, but negotiations are ex- 
pected to be difficult because the Refounded Com- 
munist Party, on whose support the government de- 
pends, opposes spending cuts. 

Deputy Prime Minister Walter Vehroni, while play- 
ing down the political importance of tbe elections, said 
die results were “confirmation of tbe public’s con- 
sensus in the work we are doing.” The opposition 
expressed similar satisfaction. 

Gianfranco Fini, leader of the far-right National 
Alliance, said the center-right was particularly pleased 
with the victory of Mr. Albeartmi in Mian. 

ing tbe maximum workweek at 48 
hours. Many of these regulations come 
under tbe scope of health and safety in 
the workplace and must be adopted by 
all countries. 

The Confederation of British In- 
dustry, the employers’ voice, has long 
opposed the introduction of European 
social legislation, and a spokesman said 
there was no telling what the agreement 
might cost British industry as other 
measures are adopted by majority vot- 
ing among EU member countries. 

“Tbe concern has always been not 
what is in it at the moment, but where it 
could lead if it is used in a mistaken 
fashion,’’ said the confederation's bead, 
Adair Turner. 

The European Commission bas 
denied that it is planning to introduce 
radical changes under the social agree- 
ment, and Mr. Cook said London would 
support only legislation that promotes 
competitiveness and tbe goal of a skilled 
and flexible work force. 

Social legislation under consideration 
in Brussels includes a measure that 
would shift the burden of proof to em- 
ployers in sex discrimination cases, rules 
to protect part-time workers, an initiative 
against sexual harassment in workplaces 
and a requirement for national compa- 
nies to inform and consult workers. The 
commission also said it would seek le- 
gislation on layoffs notification follow- 
ing the decision by Renault S A to close 
its Belgian plant without warning. 

The commission, the EU's executive 
body, argues that it is necessary to have 
a “social dimension,” as well as an 
economic one. In a 1994 report, it ar- 
gued dial economic competitiveness 
and social progress could flourish to- 
gether. It said that an adequate social 
policy would contribute to an adaptable, 
educated and motivated work force. 

“When business transcends national 
borders,” Employment Commissioner 
Padraig Flynn said, “there is a need for 
soda! rights to transcend borders also.” 

The social chapter is short on specifics 
but in general terms commits member 
countries to promoting employment, im- 
proved living and working conditions, 
1 ‘proper soda! protection" and dialogue 
between management and labor. 

To say that adopting such practices 
puts any country at a competitive dis- 
advantage “is a total misunderstanding 
of what social Europe is all about,” said 
David Lea. assistant general secretary 
of the British Trades Union Congress. 

“It is essentially about the factors 
facilitating industrial and structural 
change.” he said. “This whole process 
of giving workers some formal rights in 
Europe is actually conducive to lub- 
ricating the bigger European market 
which is ultimately the source of our 
employment and the source of our com- 


British Beef Ban: 
No End in Sight 

BRUSSELS — Britain's new 
agriculture minister. Jack Cunning- 
ham, sought to make aquick start to 
improving relations with the Euro- 
pean Union on Monday but did not 
see any early lifting of a world ban 
on British beef exports. 

Mr. Cunningham met the EU 
farm chief, Franz Fischler. to dis- 
cuss prospects for lifting the ban, 
EU faun reform and plans for Bri- 
tain’s EU presidency in January 

“We believe that a more con- 
structive. open dialogue is going to 
be helpful.” Mr. Cunningham said. 
But he declined to give any forecast 
for an end to tbe ban. imposed 14 
months ago after the former Con- 
servative government admitted that 
“mad cow” disease, or bovine 
spongiform encephalopathy, could 
be transmitted to humans. 

He said he wanted to avoid rais- 
ing hopes that the EU would ap- 
prove a British proposal to identify 
cows from herds that are free of the 
disease, which could then be ex- 
ported. (Reuters) 

Chirac and NATO 

PARIS — President Jacques 
Chirac has quietly dropped a self- 
imposed May deadline for deciding 
whether France should return to 
NATO’s military command after a 
30-year absence, officials say. 

Negotiations with the United 
States are continuing, and the tim- 
ing of France's campaign fora May 
25-June 1 parliamentary election 
was also a reason to delay a de- 
cision, they said. (Reuters) 

Shetland Blockade 

LONDON — A small group of 
Shetland Island fishermen took on 
tbe international oQ indostty 
Monday in a protest against unpaid 
compensation claims from the 
Braer tanker sqrill four years ago. 

At dawn, 1 1 small shell-fishing 
boats blockaded the Shetland oil 
port of Sullom Voe in die North 
Sea, which handles about one-fifth 
of Britain’s oil output 

The boats were protesting the 
failure of the International Oil Pol- 
lution Compensation Fund to pay 
frill compensation for pollution 
caused around tbe islands by an oil 
spill from the Braer in January 
1993. (Reuters) 

WWF World Wide Fund For Nature 

(formerly World WiMlifr Fuad] 

Interna do rial Secretariat, 1196 Gland, Switzerland. 

Outside the industrialised west, no-one bas to be told to 
respect their elders. It's simply tbe way society is organised. 

Which is why WWF - World Wide Fund for Nature tries 
to work with older people in the villages of the rainforests. With 
WWF’s help, they learn to teach the younger members of their 
communities about conservation. 

In Kafue Fiats, Zambia, it's Chief Hamusoude (93). 

Chief Bakary (78), is our man in Anjavimihavanaaa, 
northern Mada g a s car. 

In Ban Xiong Sai, Thailand, we invoke the 
Venerable Papasro Bhikkhu. seventy-three year old 
chief Buddhist monk. 

This isn't just expediency, itis how WWF. 
believes conservation projects should be run. 

Before you reach someone, we believe 
you have to learn from them. 

We spend years visiting village after 
village, talking to the people, listening 
to them, living with them, understanding 
how they live their lives. 

Only then are we able to gain 
the confidence of the village elders. 

Once they realise we’re on their 
side, our elderly converts put forward 
the argument for conservation with a 
seal that belies their years. 

“Unde” Prom (68). another of 
our Thai community leaders, tells us 
that he frequently gets scolded when he 
starts telling people in the market that 
they should leave the forests alone. 

But he gets results. 

Unde Prom and his follow vil- 
lagers recently managed to prevent 
a new logging concession, and sec up 
a community forest where tree felling 
is now forbidden. 

Ninety-three year old Chief 
Haxnusonde also makes things happen. 

Income from the Kaftie Flacs 
game reserve in Zambia is funding a 
school, a clinic and new water bore- 
holes for the local villages. 

In Madagascar, seventy-eight 
ywr old Chief BakaryV village makes 


for our 

a profit by selling fruit grown hi their new tree nursery. 

More importantly. Chief Bakary ’s village now takes fewer 
trees from the rainforest because the nursery. can provide fire- 
wood and poles for construction. 

Not that we don't believe in catching them while they're 
young. WWF also organises 

special training 

to help teachers incorporate conservation into the curriculum. buted to schools and collcges-ali over the world. 

20,000 primary teachers in Madagascar have already taken If you can help our work with a donation or a legacy 

part. And WWF produce teaching aids as well as teachers. please write to the membership officer at the address opposite. 

Wc commission educational facohects, booklets, posters You only have to look around you to see that the world 

and videos in over twenty different languages. These are distri- still has an awful lot to learn about conservation. 




Russia and Chechnya Sign Peace Pact, Without Details 


By David Hoffman 

Washington Post Ser\icr 

MOSCOW — The presidents of Rus- 
sia and Chechnya signed a formal peace 
treaty Monday that is intended to 
present a united front against rejec dem- 
ists who have staged a series of bombing 
attacks kidnappings. 

The Chechen president. Aslan 
Maskhadov, arrived in Moscow several 
days earlier than expected for a Kremlin 
ceremony with President Boris Yeltsin 
on the heels of the seizure in Chechnya 
over the weekend of a Russian tele- 
vision crew, die latest in a series of 
kidnappings that have posed a challenge 
to Mr. Maskhadov 's leadership. 

The peace treaty, a brief five sen- 
tences, formalizes the cease-fire 
reached last August It does not men- 
tion, or resolve, the issue over which 
Russia and Chechnya fought a 21- 
month war in which about 40,000 
people died: Chechnya's demand for 

Under the cease-fire agreement, that 

demand is to be resolved sometime be- 
fore 2001. 

But the treaty signed Monday did 
serve to underscore that the postwar 
peace effort had not been derailed by 
hard-liners in Chechnya and in Russia, b 
was the first visit to Moscow by Mr. 
Maskhadov since his election as Chechen 
president in January, and he was received 
respectfully in the Kremlin. 

The treaty was also a sign that Mr. 
Yeltsin is still committed to working out 
a Chechen settlement despite the de- 
parture last autumn of the architect of 
the first cease-fire. Alexander Lebed, 
the former national security adviser. 

Breaking a taboo, Mr. Yeltsin, stand- 
ing shoulder-to-shoulder with Mr. 
Maskhadov. referred to the breakaway 
republic both as Chechnya and as '‘Ich- 
keria,” as the Chechen separatists call 
their self-declared independent state. 

Mr. Yeltsin, who ordered Russian 
forces into Chechnya in December 
1994, signed the document pledging 
that both sides would ‘ 'rejecr forever the 
use of force or threat of force." which 

has a long and storied history in Rus- 
sia's conquest of the volatile region. 

Mr. Maskhadov, the former military 
commander who led Chechen troops in 
a 20- month war against Russian forces 
but who also beaded peace talks with 
Moscow, said he had signed the treaty 
"to spite all those enemies who have 
been against the peace agreement.'' 

Without mentioning names, Mr. 
Maskhadov appeared to be referring to 
Salman Raduyev, the Chechen warrior 
and disciple oftbe former Chechen lead- 
er, Dzhokar Dudayev, who has vowed to 
continue fighting Russia until 
Chechnya's independence is secured. 
Mr. Raduyev recently took responsibil- 
ity for fatal bombings in southern Russia 
and promised to carry out more attacks. 

Inside Chechnya, Mr. Maskhadov's 
control has been undermined by kid- 
nappings of Russian and foreign jour- 
nalists in recent months. According to the 
daily Izvestia, 1 1 Russian journalists re- 
main in captivity, including three from 
the NTV television network who were 
seized on a road near the Chechen border 

with Ingushetia late Saturday. Among the 
trio was Yeleua Masyuk. a correspondent 
for NTV wbo is widely respected for her 
courage in covering die war. 

It has not been dear whether the kid- 
nappers are rejectianists or are seeking to 
extract ransom for die captives. Regard- 
less, the kidnappings have undercut Mr. 
Mask hado v's authority and frustrated his 
efforts to show he is in control. 

Wearing the traditional 
Chechen sheepskin hat, Mr. ] 
said at the signing ceremony that “we 
have shown to all the world that the 
peace process has materialized.*' 

He said the Chechen authorities “will 
henceforth demonstrate their effective- 
ness to all tbe world, and there will be no 
room for terrorists and abductors of 
lie on our land." 

Yeltsin appealed to Mr. 
Maskhadov to free Russian prisoners of 
war still being held in the republic. 

The pact declared that both Russia 
and Chechnya desired “to end their 
ceoturies-long antagonism" and re- 
nounce the use of force and that they 


would deal with each other according to 
the “norms of international law.” 

Russia has never ceded independence 
to Chechnya, but both sides appeared 
willing to set aside the question during 
foe ceremony. After signing the doc- 
uments, Mr. Maskhadov met separately 
with Prime Minister Viktor 
Chernomyrdin to sign an agreement on 
. economic aid and bank transfers be- 
tween Russia and Chechnya. The sta- 
bility of Chechnya is important to Rus- 
sia because one of foe potential routes 
for shipping Caspian Sea oil to foe West 
flows through foe Chechen capital, 
Grozny, on its way to the Black Sea. 

■ Yeltsin Calls Western leaders 

Mr. Yeltsin began a round of tele- 
phone talks with Western leaders 
Monday as Russia tried to work out final 
details of a new treaty with foe North 
Atlantic Treaty Organization within the 
next two weeks, Reuters reported. He 
made tbe first call to President Jacques 
Chirac, who hopes to be the host for foe 
treaty signing in Paris on May 27. 

Kinshasa Prepares to Greet Rebels 

Opposition Organizes Welcoming Committees and Strikes 

By Howard W. French 

New York Times Service 

KINSHASA, Zaire — With Zairian 
rebels warning that a meeting with Pres- 
ident Mobutu Sese Seko on Wednesday 
will be foe government's last chance for 
a peaceful settlement, opposition 
groups in foe capital have begun openly 
declaring their support for the rebels and 
rushing jo organize welcoming com- 
mittees to greet their expected arrival 

In a sign of increasingly dire isolation 
for Marshal Mobutu, opposition rep- 
resentatives have begun stuffing printed 
tract? into parked cars or visiting in- 
ternational hotels to hand out mimeo- 
graphed statements of support for 
Laurent Kabila's rebels. Many of foe 
pamphlets call for a three-day strike 
beginning Wednesday to bring econom- 
ic activity in foe capital to a halt in a 
gesture timed to coincide with a sched- 
uled second meeting between Marshal 
Mobutu and Mr. Kabila. The two are to 
discuss a transfer of power between 
them aboard a South African warship 
off the Congolese coast 

Foreign diplomats and regional mil- 
itary analysts say that the rebels have 
spent their time since foe first unpro- 
ductive round of talks between the two 

men 10 days ago steadily reinforcing 
their positions around the capital. They 
say foe rebels are preparing for a de- 
cisive attack on the capital if Marshal 
Mobutu fails to srep down. 

The new calls for strikes originated 
with the Democratic Union for Social 
Progress, the country's largest civilian 
opposition party, which is Ted by Mar- 
shal Mobutu's longtime rival, Etienne 
Tshisekedi. Mr. Tshisekedi's party has 
also called on government soldiers to 
abandon any effort to defend Kinshasa 
from foe rebels. 

In an even more dramatic sign of foe 
government's weakening position, even 
many moderate politicians belonging to 
parties that have recently collaborated 
with Marshal Mobutu have begun form- 
ing rebel welcoming committees and 
supporting strike calls. Sensing that a 
rebel v tory is inevitable at this point, 
opposioon politicians have grown in- 
creasingly nervous that Mr. Kabila’s 
Alliance of Democratic Forces for the 
Liberation of the Congo will shut them 
out of any future government, and want 
to be seen potential partners. At the 
same time, by helping accelerate the fall 
of Kinshasa^ many opposition politi- 
cians hope to secure a quick and blood- 
less end to Marshal Mobutu’s nearly 32 
years in power. 

Foreign diplomats and Zairians 
themselves fear a destructive round of 
fighting in Kinshasa, a city of 5 million, 
or a repetition of the two bouts of wide- 
spread looting by government soldiers 
that have already occurred this decade. 

The opposition moves come as 
Mobutu supporters have busied them- 
selves trying to organize an 1 1th hour 
compromise that would allow tbe pres- 
ident to nam e a constitutional successor, 
rather than hand over power directly to 
Mr. Kabila. 

Marshal Mobutu’s designated can- 
didate for that succession. Archbishop 
Laurent Monsengwo. was elected as 
head of tbe country's transitional leg- 
islature Friday in a vote of questionable 
legality. Archbishop Monsengwo, who 
returned Monday to Zaire from an ex- 
tended stay in Europe, was greeted by 
foe disavowals of much of foe political 
class, and a flat rejection by Mr. Kab- 
ila’s rebels. 

“If he accepts foe job then we will 
abandon talks and Monsengwo will bear 
foe consequences of what will happen in 
Kinshasa, ” the alliance official respon- 
sible for foreign relations, Bizima 
Karaha. told Reuters in the southern 
rebel-held city of Lubumbashi. 

“Monsengwo has got responsibili- 
ties Mr. Karaha said, * ‘and he most not 

U.S. Marines readying a Cobra attack helicopter Monday at the Brazza- 
ville, Congo, airport They are standing by for evacuations from Kinshasa. 

repeat what he did a few years ago. He is 
the one who stopped the revolufion.'’ 

As a leader of foe 1991 National 
Conference that forced Marshal Mobutu 
to allow multiparty politics. Archbishop 
Monsengwo nas long played a prom- 

inent role in Zairian politics. Most no- 
tably, many opposition members have 
not forgiven him his role in foe sup- 
pression of reports by tbe conference on 
illegally accumulated fortunes and 
political assassinations. 

U.S. Envoy Briefs 
King of Jordan 

AMMAN, Jordan — The U.S. 
envoy to foe Middle East, Dennis 
Ross, briefed King Hussein on 
Monday on his efforts to restart 
smiled talks between Israel and the 

Mr. Ross, who met the king after 
talks with Prime Minister Abdul - 
gaiam Majali, praised Jordan’s 
support for his mediation efforts 
and said the Middle East peace pro- 
cess was still alive. 

“There is no question that Jordan 
is strongly committed to foe peace 
process and will always be sup- 
portive of any effort to try to find 
ways to put things back on track.” 
Mr. Ross said. (Reuters) 

Starving Refugees 
Found in Zaire 

NAIROBI — A United Nations 
team said Monday that it had found 
6,000 more malnourished, sick and 
dying Rwandan refugees in a camp 
previously sealed off by a rebel 
army in Zaire. 

The team also said more people 
were emerging from the dense trop- 
ical forest where many refugees 
stfll remain. 

The UN High Commissioner for 
Refugees said its agents found the 
refugees, including many children, 
at Obilo, 80 kilometers (SO miles) 
south of Kisangani. The rebels have 
closed off access to Obilo since 
May 2, after reports that Zairian 
villagers and rebel soldiers had at- 
tack refugees. (AP) 

Australian Wbman 
Swims Cuba-U.S. 

KEY WEST, Florida — An Aus- 
tralian swimmer completed a more 
than 100-mile crossing between 
Cuba and the Florida Keys on 
Monday, 24 hours after leaving 

Susie Maroney, 22, who swam in 
shark-proof cage fastened to an es- 
corr boat, came ashore on the small 
sandy beach at Fort Zachary Taylor 
State Park on Key West shortly 
after noon. It was her second at- 
tempt to cross foe Florida Straits 
after having failed at it last year. 

Her team claimed she was the 
first person to complete the swim 
from Cuba to tbe Keys. (AP) 





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BIS Admits It Handled 
Gold Looted by Nazis 

Bank Breaks Secrecy Over Wbrtime Deals 

By Alan Cowell 

New York Times Service 

.kJ^^^LP Opening a new chapter in 
the tangled saga of the Nazi goldaffair. 
Je Bank for international Settlements 
broke decades of secrecy Monday to 
acknowledge wartime gold transactions 
with the Nazis that involved both looted 
gold and ingots re-smelted in Hitler’s 
Germany to disguise their origin. 

In a lengthy statement apparently in- 
spired by the furor over the World War H 
deahngs of the Swiss National Bank, the 
Bank for International Settlements, 
toed in Basel, said that from 1939 to 
1945 the German Reichsbank trans- 
ferred some 1 3 .5 tons of gold to accounts 
in its name. 

Of that amount, the statement said, 3.7 
tons of gold were found at war’s end to 
have been looted from the central banks 
. of the Belgium, Italy and the Nether- 
7 lands, and were handed over to the Al- 
lied powers entrusted with unraveling 
Germany’s wartime gold transactions. 

The transfers ostensibly enabled Nazi 
Germany to maintain a number of in- 
ternational financial commitments until 
a month before its military collapse in 
May 1945. 

Tantalizmgly, the statement suggests 
that, while fighting a world war and per- 
petrating the Holocaust, Ge rman y alsn 
kept up interest payments on reparations 
for World War I and transactions due 
under the world postal system. 

The report offered no judgment on the 
motivation of the bank's wartime gov- 
ernors. “It is fair to say our original 
focus to been to establish facts rather 
than to try to guess the motivations and 
opinions" of the wartime management, 
the bank’s general manager, Andrew 
Crockett, said Monday at a news con- 
ference in Basel. 

The Bank for International Settle- 
ments, the world's oldest international 
financial institution, was set up in 1930 
to oversee German war reparations, but 
has since developed into a major clear- 
-k ing-house for de alin gs between central 
T banks. 

The statement was issued less than a 
week after the publication of a 200-page 
report in the United States that was 
drawn op with the help of 1 1 government 

Hie report suggested that the United 

States should have had a close know- 
ledge of the bank’s activities because its 
president at the time, Thomas McKit- 
trick, was a source of intelligence reports 
during die war. The report says the hanif 
was harshly criticized by the Allies dur- 
ing and after World War D because of its 
transactions with Nazi Germany. 

The report referred to “mounting ev- 
idence or collaborationist activities at 
the BIS during the war." and several 
U.S. officials called for the bank’s li- 
quidation after the Allied victory be- 
cause of suspicions that it had been used 
as a vehicle for Nazi transactions. 

It was not clear from the bank's state- 
ment whether the interest-payment and 
postal transactions were in fact a cover 
for transfers to further the war effort. 

The amount of German gold depos- 
ited with the Bank for International Set- 
tlements was apparently less than the 
amounts that flowed through the Swiss 
National Bank from 1939 to 1945, which 
were used largely to purchase the raw 
materials that enabled Germany to pro- 
long the war. 

A “substantial pan" of the gold that 
had been looted from the central banks 
of the Netherlands, Belgium and Italy 
"had been re-smelted and stamped with 
pre-war dates at the Prussian Mint," the 
bank’s statement said. By 1943. it con- 
tinued, no German wartime gold re- 
mained with the tank. 

The statement did not offer any spec- 
ulation about whether some of the gold 
could have included so-called victim 
gold — gold stolen from individual Jews, 
including die fillings in their teeth, be- 
fore they were sent to the gas chambers in 
the death camps, or otherwise murdered. 
The U.S. report said there was strong 
evidence that such gold had passed 
through die Swiss banking system. 

■ Credit Smsse Managed SS Funds 

Credit Suisse managed a Nazi SS ac- 
count during World War II and carried 
out transactions with a German com- 
pany that managed the finances of con- 
centration camps, Agence France- 
Presse said the Sonntags Zeitung news- 
paper reported Sunday. 

The report said that Credit Suisse had 
maintained “dose contact" with the 
Deutsche Wirtschaftsbetriebe, which 
was responsible for the financial man- 
agement of the concentration camps. 

Mate Ha*n*mie Anorianal Pte*a 

ISRAELI HOLIDAY — An Israeli boy trying out an Uzi submachine gun during an army weapons show 
in the West Bank settlement of Kedumim on Monday, celebrated as Israel's 49th Independence Day. 

PARIAH : Merchant’s Mysterious Death 

Continued from Page 1 

certain area is under Jewish ownership, 
Israel sees it as part of its sovereign 

The attorney general of the author- 
ity, Khaled Qidra, termed land sales to 
Israelis '‘high treason" punishable by 

Hundreds of accused collaborators 
with Israel, inducting land dealers, were 
killed by Palestinian militants during a 
seven-year uprising against Israeli oc- 
cupation that ended with the entry of 
Palestinian forces into areas of the Gaza 
Strip and West Bank in 1994 under the 
Israeli-Palestinian self-rule accords. 

At Mir. Bashiti's home in Bast Je- 
rusalem on Sunday, distraught rela- 
tives quarreled among themselves as 
they tried to defend the dead man's 
reputation yet avoid accusations 
against the Palestinian Authority that 
might put them at risk. 

His wife, Naziq, and son, Mo- 
hammed, denied reports that Mr. 

Bashiti had sold property to Israelis in 
Jerusalem and surrounding areas. 

"He is completely, innocent of 
everything they say," his wife said. 

Was the authority behind his death? 
"Everything is possible." she replied, 
coached by a relative. "We don’t 

Mr. Bashiti disappeared Thursday 
afternoon, his wife recalled, after he 
left for a business meeting at a local 
hotel with a real estate agent nam ed 
Nadia. The two were seen leaving the 
hotel together, but he did not return 
home, his wife said. 

A nephew. Assent Bashiti, said he 
went to Ramallah after the police there 
called at 3 A.M. on Friday and reported 
that his uncle bad been hit in a traffic 
accident. Mr. Bashiti's body had been- 
dnmped by the side of a road, hands 
bound behind him. He was gagged and 
had been smashed in the head by a 
sharp weapon, the nephew said. 

Israeli security officials say they 
suspect chat Mr. Bashiti, who was re- 


I; " 

Rnla HsbwmVRmcn 

Mohammed Bashiti denying that 
his father sold property to Jews. 

ported to have been interrogated in 
Bethlehem two weeks ago by a Pal- 
estinian police commander about sus- 
pected land deals, may have been lured 
to the meeting at the hotel, taken to 
Ramallah and killed there by Pales- 
tinian security agents. 

Court in Berlin 
Exonerates Man 
Executed by Nazis 

The Associated Press 

BERLIN — More than a half- 
century after he was beheaded for 
desertion, a Catholic sexton was 
cleared by a court in Berlin on 
Monday or aNazi-era conviction for 
refosing to serve in Hitler’s army. 

Franz Jaegerstaetter, who was 
drafted after the annexation of his 
native Austria, sought to be excused 
fw service in fee German Army for 
religious reasons. His appeal to be 
assigned noncombat duty was re- 
fused. and a field court sentenced 
him to death in July 1943 for treas- 

The Nazis executed numerous re- 
ligious faithful who sought exemp- 
tion from military service, or were 
singled out for other acts of re- 

The Berlin court has been re- 
viewing Nazi -era verdicts at fee re- 
quest of survivors, religious orga- 
nizations and others, and last spring 
lifted convictions against a noted 
Lutheran theologian and two oth- 

Mr. Jaegerstaetter’s widow pe- 
titioned fee court to dis m iss the con- 
viction before fee 90fe anniversary 
of his birth. May 20. 

The Catholic diocese in Linz, 
Austria, has started investigations 
necessary to beatify Mr. Jaeger- 
staetter, a step toward sainthood. 
Mr. Jaegerstaetter distinguished 
himself shortly after Austria's an- 
nexation by being die only person in 
his village to vote against fee cre- 
ation of - a so-called Greater Ger- 

TALKS: India and Pakistan Open New Era ’ in Relations With Pledge by Prime Ministers 

Continued from Page 1 

Earlier. Mr. Gtijrai, breaking from his 
text in a speech to a broader meeting of 
leaders from six South Asian nations that 
began here Monday, spoke wife similar 
enthusiasm for Mr. Sharif, calling him 
‘ ‘my old colleague and personal friend” 
and saying of Mr. Sharif's election vic- 
tory that "it spells a new era” for ties 
between India and Pakistan. 

While none of fee knotty issues like 
Kashmir feat have divided fee two coun- 
tries was resolved or even addressed in 
more than glancing fashion, Indian and 
Pakistani officials spoke of a new be- 
ginning having been made in fee 90 
minutes of talks, which began wife a 20- 
minute private encounter between fee 
two leaders and continued through a 
lunch wife high-r ankin g members of 
their delegations. 

Whether fee meeting becomes a turn- 
ing point, or another false dawn, will 
depend on detailed talks that will resume 
at fee level of senior officials in Is- 
lamabad, the Pakistani capital, late this 
month or sometime in the first half of 

At those talks. the foreign ministers of 
the two countries will meet under in- 
structions from Mr. Gujral and Mr. Sharif 
to set up “working groups" that will sedc 
breakthroughs on a wide range of issues. 
These mil include an opening up of 
trade, which is currently so hamstrung by 
high tariffs and other harriers feat official 
figures for last year showed total trade 
between the two nations with a combined 
population of 1.1 billion people of only 
$115 milli on- Even when smuggled 
goods are added in, officials here said, fee 
total is probably not more than $1.5 bil- 
lion. a small fraction of what India sells 
each year to fee United States. 

Although Indian officials said that no 
agreement had been reached on exactly 
which issues would be handed to fee 

working groups, fee Pakistani foreign 
mmis ten.Sham^d Ahmed, told report- 
ers feat Indiahad agreed that one of the 
issues to be separately reviewed would 
be Kashmir. This is fee divided territory 
with a large Muslim majority that has 
been the cause of two wars between 
India and Pakistan, and which, in fee 
Indian-held part of the territory, has been 
the scene for most of the past decade of a 
bloody insurgency by Muslim rebels 
that has tied down more than 500,000 
Indian troops and police. 

One of the immediate products of the 
meeting was an order from fee two prime 
ministers to begin fee immediate release 
of about 400 civilian prisoners who have 
been held in jails in fee two countries, 
some of them for 10 years and more, for 
offenses closely linked to fee hostility 
between the two countries. Officials said 
that most of the prisoners were people 

who had strayed from one nation’s wa- 
ters into the other's while fishing in the 
Arabian Sea. or crossed the 1,280-ki- 
lometer (800-mile) land border without 
visas, or overstayed the permitted time 
on visits to relatives left behind in fee 
mass migration of Hindus and Muslims 
that accompanied the partition of British 
India in 1947. 

Another accord, proposed by Mr. 
Gujral and promptly accepted by Mr. 

Sharif, was for fee re-establishment of 
a “hot line" telephone between fee of- 
fices of the two leaders, the first such 
link in nearly decade. 

A similar line was set up after a meet- 
ing in Islamabad in July 1989 between 
Prune Minister Rajiv Gandhi of India 
and Prime Minister Benazir Bhutto of 
Pakistan, the last summit meeting be- 
tween leaders of the two countries, but 
that link was shut down, apparently un- 

COUNTDOWN — Elena Kondakova of Russia at the Kennedy Space 
Center on Monday with her husband. She will be one of seven 
astronauts to lift off 1 Thursday in a shuttle for the Mir space station. 

der pressure from fee Pakistani military, 
after Mrs. Bhutto was removed from 
office the following year. 

* Group Urges Political Dialogue 

Leaders of seven South Asian nations, 
members of the South Asian Association 
for Regional Cooperation, called 
Monday for more political dialogue 
among members, Reuters reported from 
Male, Maldives. 

They should "institute a separate but 
parallel process of political dialogue for 
fed'purpose of further consolidating un- 
derstanding and harmony among our 
countries.’ fee Maldivian president, 
Maumoon Abdul Gayoom, said. 

The group comprises the Himalayan 
kingdoms of Bhutan and Nepal, fee In- 
dian Ocean island nations of Maldives 
and Sri Lanka, India, Bangladesh and 
Pakis tan. 

Algeria Is Rocked 
By More Car Bombs 

Agence France-Presse 

ALGIERS — Car-bomb attacks in 
Algeria over the weekend left up to 16 
people dead and more than 100 
wounded, according to reports in fee 
local press on Monday. 

A car-bomb attack on Sunday in Boidj 
El Kifan, just east of Algiers, killed from 
8 to 13 people, according to press re- 
ports. Citing policemen, Le Matin re- 
ported fee number of dead as eight and 
said feat around 50 people were 
wounded, while El Watan reported feat 
13 people were killed. 

Three other blasts left one dead and 4 1 
wounded in Algiers. 

El Khabar reported Monday that an- 
other bomb exploded near Medea, killing 
two people and wounding 1 1. 

Donor Inquiry 
Delves Into 
Links to China 

By James Risen - 

Los Angeles Times Service ■■ 

WASHINGTON — U.S. offidals are * 
investigating whether an executive of a ' 
Chinese-language newspaper in Califbr- f 
ilia who sat next to President Bill Clinton , 
at a fund-raising event in July is an agent , 
of fee Chinese government, sources fa- . 
miliar with a federal inquiry say. 

Ted Sioeng, an Indonesian entrepre- 
neur whose family owns the Interna- [ 
tional Daily News, in Monterey Park 
outside Los Angeles, and other busi- ■ 
nesses, is under suspicion apparently ! 
because of evidence gathered from ' 
secret Chinese communications feat 
were intercepted by U.S. intelligence 
services last year, fee sources said. 

The communications, from Beijing to - 
the Chinese Embassy in Washington, 
were alleged to outline a secret scheme 
to expand Beijing's influence on fee 
U.S. political scene. They are part of the 
FBI's investigation into illegal foreign 
contributions to American campaigns 
and how those donations were intended . 
to influence fee political process. * 

Justice Department officials, citing 
the classified nature of the information 
about the case, refused to comment. FBI 
officials also refused to comment. 

Mr. Sioeng travels frequently to 
China and other countries. He has had no , 
public comment on fee investigation • 
since Newsweek magazine first reported 1 
last month feat his finances wots being 
examined. He is the first person in the 
investigation who has emerged as a sus- * 
peeled Chinese agenL 

He could not be reached to comment 
Acquaintances said he was in Asia and ' 
has not been in fee United Stales for 
some time. 

Mr. Sioeng 's family acquired the In- : 
temarional Daily News in 1 995 or early 
1996 and changed its independent ed- 
itorial stance to one that is pro-Beijing. It ; 
is operated by his daughter. In addition - 
to fee newspaper, Mr. Sioeng owns two ' 
hotels and imports Chinese cigarettes ; 
into fee United States. 

The FBI is looking into Mr. Sioeng’s 
bank transactions to try to determine fee ’ 
origin of his money, fee sources said. 

Mr. Sioeng's family took an active 
role in fee Democratic national cam- , 
paign last year, in part through an as- 
sociation wife John Huang, a former Los 
Angeles banker and Democratic Party , 
fund-raiser who has been at the center of 
a scandal over improper foreign con- . 
tri buttons to American politicians. 

Mr. Sioeng's daughter, Jessica El- 
nitiarta. who has real estate businesses in 
Los Angeles, gave the Democrats a total 
of $250,000 in 1996, personally and 
through a family company. Panda Es- 
tates Investment Inc. Mr. Huang handled 
the contributions. 

Mr. Huang resigned from the Demo- 
cratic National Committee, and inves- 
tigators are looking into his contacts, 
wife his former employer, the Indonesia- 
based Uppo conglomerate, which has 
extensive interests in China. 

The sources said investigators were 
trying to determine whether people act- 
ing for China funneled illegal money 
into various campaigns to win influence 
with politicians who might help advance 
Beijing’s interests. 

Officials declined to discuss the con- 
tents of fee intercepted Chinese com- 
munications. But they said the inquiry 
was trying to determine whether Mr. 
Sioeng played a role in the operation. 

The Democrats have said the national 
committee will return $3 million in 
donations received from suspecred il- 
legal or inappropriate sources. A patty 
spokeswoman said it has not challenged 
Miss Elnitiarta’s donations because she 
is a legal U.S. resident, but would re-, 
consider if “new information comes to 
light.” Miss Ehtitiarta did not return 
telephone calls seeking comment. 

While fee family 's contributions were 
made by Miss ELnitiarta, Mr. Sioeng 
went to major fund-raising events last 
year that were arranged by Mr. Huang 
and attended by fee president and Vice 
President AJ Gore. 

Mr. Sioeng sat next to Mr. Clinton at a 
dinner in Los Angeles on July 22, 1996 — 
a day before his daughter gave an in- 
stallment of $100,000 to the Democrats. 
Mr. Sioeng also went to a fund-raiser in 
April 1996 at a Buddhist temple in Cali- 
fornia feat was attended by Mr. Gore. 

CHE SS; Ritter in Defeat, Kasparov Says He’d Tear Deep Blue Ho Pieces’ in a ‘Fair’ Match 

Continued from Page I 

GAME 6 — CaroKann Defense 

^Deep Blue at some point in the future. 

' The game itself was problematic for 
Mr. Kasparov from the start. Playing 
black and needing a victory to capture 
fee match, he was perhaps too defiant in 
fee early going, pursuing a risky se- 
quence of moves in a conservative open- 
ing called fee Caro-Kann. He encour- 
aged Deep Blue to sacrifice a knight, 
resulting m a position that left his own 
Icing exposed, and many chess experts 
wondered if he hadn’t made a simple 

blunder. . . 

It was all over not too much later. 

Having lost his queen and wife his kmg 

dangerously exposed, Mr. Kasparov ab- 
ruptly stood up to resign. 

Perhaps most surprising wasMr- Kas- 
parov i s^rformancc at fee posqpune 
Sews conference, which, fee 

exuberant celebration mooned by fee 

tournament sponsor, IBM, but ratoa 
tense occasion in which Mr. Kasparov 
Wiped, apologized and vowed that he 

for Deep Blue to 

prove this was not a single event, “ 
said, suggesting that the cmnputer <mter 
into regular match play with top chess 

players. "I personally assure you that, if 
it starts to play competitive chess, put it 
in a fair contest and I personally guar- 
antee you I will tear it to pieces. 

Patrick Wolff, a grandmaster who is a 
two-time American champion, was 
among those experts who were non- 
plussed by the champion’s behavior. 
“His resignation was probably prema- 
ture, but he was probably lost,” Mr. 
Wolff said. “I think he was terrified at 
the prospect of losing an honest com- 
petition, and he gave himself an excuse, 

that this is not real chess. Well. I have 
news for him. This is real chess. What 
we've seen today is psychological weak- 
ness of fee sort Td never expect from 

Mr. Kasparov had his supporters, par- 
ticularly among those who thought this 
was a spectacle staged by IBM for the 

good oflBM. , 

“This was not a senous chess 
match," said Lev Alburt, a former U^. 
champion who has said there are 100 
aamtaasters in fee world who could 
beat Deep Blue. "This was a show. 

At fee news conference after toe 
game, a daric-eyed and brooding cham- 
pion said feat his problems began after 
fee second game, won by Deep Blue 

after Mr. Kasparov had resigned what 
was eventually shown to be a drawn 
position. Mr. Kasparov said he had 
missed the draw because the computer 
had played so brilliantly that he thought 
it would have obviated fee possibility of 
the draw known as perpetual check. 

. “I do not understand how fee most 
powerful chess machine in the world 
could not see simple perpetual check.” 
he said. He added be was frustrated by 
IBM's resistance to allowing him to see 
the printouts of fee computer's thought 
processes so he could understand how it 
maria its decisions, and implied again 
that there was some untoward behavior 
by fee Deep Blue team. 

Asked if he was accusing IBM of 
cheating, he said: “I have no idea what’s 
happening behind the curtain. Maybe it 
was an outstanding accomplishment by 
fee compute. But I don’t think this 
mflfjhiin* is unbeatable.” 

He said if there were another match, 
he would insist it not be sponsored by 
IBM. feat it should be at least 10 games 
and 20 days long (“You have to give a 
human a chance to rest”) and that the 
previous games played by the computer 
must be available. 

"I played a friendly match,” he said. 

"I was sure I would win because I was 
sure fee computer would nuke certain 
kinds of m istak e s, and I was correct in 
Game 1. But after that the computer 
stopped making those mistakes. Game 2 
had dramatic consequences, and I never 

The IBM team denied there had been 
any hanky-panky, and fee team leader, 
C J. Tan, said the computer logs would 
be published in appropriate journals in 
the near future. 

■ A Complete Breakdown 

Robert Byrne, a grandmaster who is 
the chess columnist for The New York 
Times, commented: 

By fee standards of top chess, it was a 
complete breakdown. As the grand fi- 
nale of a historic contest, it was no 

Mr. Kasparov opened himself up 
Sunday to an attack mat no leading play- 
er ever lets himself fall into. As other 
gra n d m asters, members of the press and 
a big crowd of spectators watched in 
stunned disbelief. Deep Blue over- 
whelmed the world champion without 
even heating up its circuits. 

Some of the assembled grandmasters 
believed feat the man who knows more 











11. BM 






3. Nc3 


13. Rel 


4. Nxe4 


14. BQ3 


5- No5 

6. Bd3 



15. an 

16. CW3 







8. Nxe6 


18. Rxe7 


9. 0-0 



19- C4 


openings than anyone had forgotten fee 
correct way to play the opening he him- 
self chose for this important battle. 

Others speculated that when he made 
the move that everyone else rejects, he 
must have wrongly thought be had 
worked out a way in his pregame prep- 
aration to hold off fee brutal attack ft 

Perhaps fee cause of the final debacle 
can be found in the ferocious resistance 
feat the incredible computer had been 

In Game 5, on Saturday, Mr. Kas- 
parov looked pitiful when the machine’s 
inspired, intrepid defense transformed 
into a draw a position in which Mr. 
Kasparov thought he was winning. 

Afterward, he was visibly shaken. 
Perhaps wife feat draw, his hopes — his 
self-confidence — turned to ashes. 

A. Cespedes, 94, 
Bolivian Figure 

The Associated Press 

LA PA2 — Augusta Cespedes, 94, a 
prominent politician and author who 
played a key role in Bolivia's revolution 
intheearJy 1950s, died of pneumonia on 
Sunday, Ms family said 
Mr. Cespedes was one of fee founders 
of fee Nationalist Revolutionary Move- 
ment feat seized power in the early 
1950s. y 

Mr. Cespedes is credited wife having 
promoted some of the most far-reaching 
changes introduced by fee movement's 
governments, including widespread 
land reform and fee nationalization of 
the tin mines. 

Ann Duncan, 46. fee art critic of The 
Gazette of Montreal and other publi- 
cations, died of lung cancer Saturday in 
Montreal. She also contrib uted to the 
International Herald Tribune and to such 
publications as Art News and the Globe 
and Mail of Toronto and had worked for 
the Canadian Press in Montreal and Ot- 
tawa and for Agence France-Presse in 


TUESDAY, MAY 13, 1997 





An Opening for Ulster 

Britain's elections have given a lift co 
die possibility of peace in Northern Ire- 
land. Six months ago the stalemate be- 
tween the Irish Republican Army, the 
British government and Northern Ire- 
land’s Protestant Unionists seemed 
overwhelming. Today the IRA may be 
more inclined to declare another cease- 
fire. Britain's new prime minis ter. Tony 
Blair, ought to reward such a com- 
mitment by announcing that if the cease- 
fire bolds, Sinn Fein, the IRA’s political 
wing, will be welcome at the peace talks 
on a definite date, perhaps in late sum- 
mer. That would mark the group's first 
presence in the negotiations. 

Britain's former prime minister, 
John Major, took die peace process far, 
but be would not give the ERA that 
assurance. It would have been risky in 
an election year, and his Conservative 
Party’s parliamentary coalition in- 
cluded the Northern Ireland Unionists, 

who do not want the Republicans at the 
. Moderate 

negotiating table. Moderate Unionists 
gained support in last week's elections 
at the hard-liners’ expense. With a 
large Labor majority in Parliament, 
Mr. Blair has a freer hand. 

The elections also strengthened 
Gerry Adams, the leader of Sinn Fein. 
Mr. Adams, who ran on a peace plat- 
form. easily won a seat in the British 
Parliament. Many in the IRA do not 
want a cease-fire and believe drat the 
British will listen only to force. Mr. 
Adams says he is not one of them, and 
has given every indication that he fa- 
vors a renewal of the cease-fire that 
ended early last year. He will now have 
more clout to persuade die IRA. 

Mr. Blair’s Northern Ireland sec- 

retary. Marjorie Mowlam, said early 
this spring that she would bring Sinn 
Fein to the peace talks if a cease-fire 
held, but that was before elections. 
This month she spoke of the need to 
reform Northern Ireland’s police and 
end job discrimination, two Issues cru- 
cial to Northern Irish Catholics. 

Ms. Mowlam has also said the right 
thing about parades. Every year. 
Northern Ireland’s peace is jeopard- 
ized by Unionist parades through Cath- 
olic neighborhoods, which often end in 
brawls and riots. A commission this 
January recommended setting up an 
independent tribunal with authority Co 
decide where the Unionists can march. 
Mr. Major pot off acting on die re- 
commendation. Ms. Mowlam says the 
new government embraces it fully. 
That will not help with this summer’s 
marches, though, and Ms. Mowlam 
must act quickly to ensure that police 
do not use excessive force. 

Even if all-party talks commence, 
they could quickly be derailed by dis- 
armament issues. Unionists demand, 
that the IRA turn over its weapons 
before talks proceed. A group headed 
by former U.S. Senator George 
Mitchell produced a reasonable solu- 
tion last year, which is to deal with arms 
issues as the rest of the talks proceed. 
Mr. Mitchell, who is now chairman of 
the talks, has earned the trust of all sides 
in the conflict. He, and the Clinton 
administration, should stay involved. 

With Mr. Blair in office and Mr. 
Adams strengthened, Mr. Mitchell 
may find that the opportunities for 
peace have improved. 


Delaying Doesn’t Work 

The seating of a new Parliament in 
Bulgaria last week should settle an 
argument with implications far beyond 
Bulgaria's borders. 

A former Warsaw Pact nation and 
one of the most subservient to Moscow, 
Bulgaria chose after the Soviet Union ’s 
demise to adopt a slow approach to 
economic reform. This is a route much 

championed by former Communists in 
Russia, as wei las ir 

i in many other nations 
now making the transition from 
planned economy to something else. 
Their argument was that they could 
minimize the pain. Radical reform — 
shock therapy, as it was often called 
derisively — would impoverish the 
masses, but a gradual approach to cap- 
italism could cushion everyone. 

The results in Bulgaria were nothing 
short of disastrous. Gradual reform, in 
practice, meant continuing state sub- 
sidies to hopeless factories and banks. 
Instead of helping workers, these 
simply offered great opportunities for 
official thievery on a massive scale. 
Bulgaria's currency spiraled into hy- 
perinflation, its banks went bust, and 

children and the elderly veered toward 
malnutrition. Finally, this winter, 
people had had enough- Their street 
demonstrations forced the quasi-Com- 
munist government to leave office and 
allow new elections. A new, pro-reform 
coalition is now firmly in charge. 

The new government is committed 
to stabilizing the currency, ending sub- 
sidies to money-losing enterprises, 
seeking membership in NATO and the 
European Union, privatizing far mlan d 
and unleashing free enterprise. Be- 
cause of its lost years, Bulgaria will 
remain poor for a long time; Poland, 
Estonia and others that understood the 
need for rapid reform are now far in 
. advance. But improvements in living 
conditions should be evident soon. 

In Russia, meanwhile, the debate 
goes on. The reformers press' to get the 
state out of die economy; the Com- 
munists resist, thereby opening more 
opportunities for corruption, which 
they then blame on the reformers. 
Those who still argue for slow reform 
should be sent on a field trip to Sofia. 


A Better Deal for Gypsie 

Last week the Catholic Church be- 
atified a Gypsy for the first time. Ce- 
ferino Jimenez Mafia was a Spanish 
Gypsy, executed during the Spanish 

Civil War for protecting a local priest 
sine to sunenae 

and refusing to surrender his rosary. 
The beatification, which is the first 
step toward canonization, was a rare 
public acknowledgment of the con- 
tributions of a reviled and persecuted 
minority in Europe. 

A statement by a contestant in the 
1993 Miss Czech Republic pageant 
was unfortunately more typical of at- 
titudes in Eastern Europe, where most 
Gypsies live. Asked the predictable 
question about her dreams for the fu- 
ture, the contestant said she wanted to 
cleanse her city of dark-skinned people. 
The crowd applauded, and Czechs 
around the country praised her candor. 

Life for Eastern Europe's Gypsies 
was never good. The Nazis killed half a 
million of them. Germany never paid 
recompense, and has only now built a 
memorial to this genocide, a Gypsy 
cultural center in Heidelbferg. Com- 
munist governments alternated be- 
tween deporting Gypsies and trying to 
protect them with special programs, 
such as channeling their children into 
music schools, which often did more 
harm than good. 

Ironically, the end of Communist 
controls on speech and behavior has 
made Gypsy conditions worse. Re- 
ports of skinheads killing Gypsies or 
burning their villages are common. 
Otherwise peaceful village residents 
have assembled to raid Gypsy neigh- 

borhoods. Few of these crimes are in- 
vestigated, and police abuse of Gyp- 
sies is frequent. 

Police violence is also a problem for 
Gypsies in Western Europe. Few 
people want to hire Gypsies or lease 
apartments co them. As a result, many 
live in shacks and have no jobs. Often 
they turn to begging or petty theft 
which fuels prejudice. 

In times of economic uncertainty, 
people in Eastern Europe are looking 
for scapegoats, and often find them in 
the Gypsies, who pride themselves on 
keeping separate from the rest of the 
world and frequently do not keep their 
children in school. 

East Europeans are also once again 
defining themselves through ethnic na- 

tionality and restricting the rights of 

minorities. When the Czech Republic 
split with Slovakia, it ruled that only 
people who had a clean criminal record 
for five years could get Czech cit- 
izenship. a law that directly targeted 
Gypsies. Twenty thousand who had 
been living in the Czech Republic were 
left without citizenship. 

Gypsies are increasingly defending 
themselves. They run for political of- 
fice and publish newspapers. Lawyers 
representing them have won a few 
cases in the courts. But even countries 
that have reasonably good laws find 
that prejudice poisons their enforce- 
ment States must take special care to 
ensure that Gypsies receive the same 
protections and access to justice as all 
their other citizens. 





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Back to Stable Money and Balanced Budgets 

W ASHINGTON — America is 
completing a 40-year political 
and intellectual journey. Consider two 
events: a bipartisan agreement to bal- 
ance the budget by 2002. and die latest 
unemployment rate, which at 4.9 per- 
cent is the lowest since 1973. 

These events mark a passage in how 
the country th'mlcs about the economy 
and government. They signal die re- 
assertion of folk wisdom over profes- 
sional economics. 

The triumphant folk ideas are the 
desirability of stable money (that is. 
low or no inflation) and of balanced 
budgets. We don’t have either, but we 
do have a broad consensus that both 
serve long-term well-being. 

As recently as the late 1950s, these 
ideas commanded popular thinking. 
They were regarded as prudent dis- 
ciplines. Government should not, in 
normal times, spend more than it taxes; 
balancing the budget compelled politi- 
cians to choose between the hurt of 
higher taxes and the benefits of higher 
spending. And stable money fostered a 
stable economy and social relations. 

But in the 1960s these durable tra- 
ditions were ridiculed and discarded. 
Economists dismissed them as old- 
fashioned and harmful. A bit of in- 
flation, they argued, could lower un- 
employment. Wisely used, budget def- 
icits could avert recessions. 

Because these supposedly sophis- 
ticated themes never delivered, we 
have now come foil circle. 

The significance of the new budget 

By Robert J. Samuelson 

agreement transcends its particular 
merits and demerits. It lies mainly in 
the fact that the goal of a balanced 
budget has been embraced across much 
of the political spectrum. What people 
aim to achieve, even if they frill short, 
afreets how they behave and what is 
considered legitimate and illegitimate. 

The pursuit of “stable money” is, in 
s imilar fashion, now a central aim of 
government economic policy in a way 
that it had not been. Two decades ago 
the phrase had vanished from econom- 
ic discussion. Economists and govern- 
ment officials talked instead of con- 
taining inflation at tolerable levels and 

8.5 percent; in 1982 it averaged 9.7 
percent. Government policies grew 
more muddled and unpredictable, as 
many futile tactics — wage and pnee 
controls and guidelines, credit controls 
were tried against inflation. Mean- 
while. budget discipline was lost. 

Budget deficits expanded under 
Ronald Reagan, but the decisive events 
in the creation of perpetual deficits — - 
the abandonment of the tradition that 
inhibited them — occurred under Pres- 
idents Kennedy, Johnson and Nixon 
with the aid of Democratic Congresses. 
Deficits were tolerated as enlightened 
when in fact they were merely expedi- 
ent. Since 1961 the budget has been in 

surplus in only one year (1969). 

Views have shifted 
mostly as the result of 
bitter experience. 

reconciling it with sustained economic 
growth and low unemployment 
Views have shifted mostly as the 
result of bitier experience. 

In 1960, inflation was 1.4 percent; 
by 1979 it was 133 percent The effort 
to “manage” the economy for greater 
stability and lower unemployment led 
to more instability and higher unem- 
ployment Recessions were not 
avoided and tended to be harsher. 

In 1973, unemployment averaged 

reason a budget agreement has 

been possible is that the economy has 
been stronger than expected, leading to 
lower unemployment and higher tax 
revenues. The fact that so many eco- 
nomists (including many who pro- 
moted the foolish policies of die 1 960s 
and ’70s) are so astonished reaffirms 
the superficiality of their economic un- 
derstanding. Psychology matters — a 
lesson they have never truly grasped. 

The 1960s’ pledge to prevent re- 
cessions made companies and workers 
irresponsible. They felt they could 
raise prices and wages without their 
inflationary behavior being punished 
by lower profits or lost jobs. Since the 
early 1980s, these self-defeating as- 
sumptions have given way. 

Economic insecurity tins increased 
for many individuals and firms. But, 

paradoxically, market pressures have 
promoted overall stability- Companies 
restrain labor costs. Lower labor costs 
foster more hiring. Subdued inflation 
limits harsh anti-inflationary policies. 

We are also reverting to the notion 
that tiie budget is mainly a framework 
for determining the role of government 
and less an instrument of economic 
policy. There is little talk now of the 
economic virtues of deficits. 

Congress, foe president and the pub- 
lic are drifting toward traditional ideas: 
the belief that large peacetime deficits 
shift the tax burden onto future gen- 
erations, and a commonsense faith that 
pleasant spending should be checked 
by unpleasant taxes. 

The rediscovery of old virtues will 
not solve all problems. Balanced 
budgets are not always appropriate 
(wars and economic slumps are ex- 
ceptions). And just because a govern- 
ment balances its budget does not mean 
that it will operate wisely. It may im- 
pose unfair or oppressive taxes. It may 
spend too little or too much. 

Nor does a commitment to stable 
money ensure, by itself, economic uto- 
pia. It will not prevent slumps or brief 
spurts of inflation. Nor will it guarantee 
growth. Although Europe and Japan 
have low inflation, their growth falters 
for other reasons. 

But these folk virtues are needed for 
national success. Their recovery makes 
you wonder where America would be 
now if they had never been lost. 

WtuAinglon Pair Writers Group. 



fhere Is 



A Clear Case for Preventive Diplomacy in East Asian Waters 

TTONOLULU — The recent 
I~l landing by a Japanese le- 
gislator on one of the rocky 
Senkaku Islands disputed be- 
tween Japan and China, and 
known to foe Chinese as foe 
Diaoyu Islands, was an ine- 

By Charles E. Morrisson 

nationalist to embarrass his 
government and stir up trouble 
just when Chinese-Japanese re- 
lations were improving. 

It was also a reminder that 
territorial disputes involving 
many of the countries in North- 
east and Southeast Asia con- 
tinue to be a cause of trouble 
and potential conflict 
Just the other day the Fhil- 

(Sirrese *na\raf^ vessels were 
spotted near Philippine- claimed 
islets in the Spratly group in foe 
South China Sea. Two years ago 
the Chinese had constructed a 

§ latform on another of the 
pratiys. claimed by Manila, the 
appropriately named Mischief 

Reef, but this time the Chinese 
ships left the area. 

In March, Vietnam com- 
plained about Chinese oil ex- 
portation in waters between the 
two countries. 

How threatening are such dis- 
putes to peace and stability? It is 
hard to imagine countries going 
to war over uninhabited islets, 
even with the extensive mari- 
time and seabed resource claims 
at stake. Governments, as in the 
Chinese-Japanese case, often 
hope to contain the damage, usu- 
ally through delaying tactics. 

It is rare for political leaders 
to take steps to resolve such 
disputes, but several have set a 
statesmanlike example. The 
leaders of Malaysia and Indone- 
sia agreed in October to send a 
border dispute involving two is- 
lands off Kalimantan to the In- 
ternational Court of Justice for 
settlement Malaysia and Sing- 

apore have also referred a dis- 
pute over ownership of a rocky 
islet to the world court 

However, other claimant 
governments in East Asia are 
evidently unwilling even to 
contemplate the political fallout 
of appearing to put their prin- 
ciples of sovereignty and ter- 
ritorial integrity at risk. 

Thus the disputes remain 
time bombs that flare up from 
time to time. 

Whether the next generation 
will be in any better position to 
resolve territorial issues is ques- 
tionable. For this reason, a re- 
cent report by a group of re- 
gional security specialists, The 
Asia-Pacific Security Outlook: 
1997, places such disputes on a 
“watchlist” for the region. 

The significance of the dis- 
putes should not be exaggerated 
but cannot be ignored. Unless 
disputes are resolved, govern- 

ments will repeatedly be drawn 
into rhetorical conflicts that 
may slow cooperation on issues 
of much greater practical im- 
portance to their people. 

The leave-it-to-later-genera- 
tions formula is not good 
enough. The danger is that po- 
litical or social tensions in a 
claimant country may provide 
foe tinder by winch an islet dis- 
pute could become a 'serious in- 
ternational relations issue rattier 
than a tempest in a teacup. 

Governments could intensify 
efforts to prevent incidents, per- 
haps by declaring such islets 
protected zones requiring spe- 
cial permission for their nation- 
als to visiL If political leaders 
become strong or courageous 
enough, they should negotiate 
solutions themselves or follow 
the Indonesian, Malaysian and 
Singaporean examples of refer- 
ring such disputes to interna- 
tional arbitration. 

Nondisputants cannot be ex- 

pected to take positions on the' 
merits of individual cases., 
which are best left to intenia- 
tiona) courts and negotiations' 
among the countries involved.} 
But they should reaffirm their 
commitment to the peaceful set- 
tlement of all such disputes, free, 
from the exercise or threat of- 
coercion, and to the principle of 
freedom of navigation. • 
They may also be in a po^ 
sition to support useful dialogue 
between claimants, as in the*, 
case of the forum sponsored by- 
Indonesia to draw the six coun- 
tries with conflicting claims to: 
the S pratiys into constructive: 
talks. For persistent territorial 
issues, preventive diplomacy as* 
well as national restraint are* 
well worth the trouble. * 

The writer, an international 
relations specialist at the East* 
West Center -in Hawaii, con* 
rributed this comment to ihe In* 
temational Herald Tribune . 

Can There Be a Peaceful Route to Peace in Northern Ireland? 

B elfast — T he status quo 

in Northern Ireland is too 

The cease-fire between the 
factions broke down in Febru- 
ary 1996 after 17 months of 
peace. But that has not affected 
Northern Ireland much, be- 
cause the IRA has confined its 
bombings to England. 

While I was here. Prince 
Charles inaugurated the new 
$40 million Waterfront Hall op- 
era house, where he and 2,500 
guests paying $125 each were 
serenaded by Dame Kiri Te 
Kanawa. The Europa Hotel. 
Belfast’s most oft-bombed 
building, recently signaled its 
optimism by removing from 
foe lunch menu its famous 

By Thomas L. Friedman 

“BLAST” sandwich (Bacon. 
Lettuce and Some Tomato). 

The authorities have replaced 
some of the ugly metal fences 
dividing Catholic and Protestant 
neighborhoods with what the lo- 
cals call “designer walls,” foe 
sort of patterned brick wall you 
would find around a gated com- 
munity in Florida. 

This is not foe Gaea Strip. Or, 
as a moderate Catholic profes- 
sor remarked to me: “Let’s be 
honest, foe middle classes here 
are doing very weM.” 

The duty tittle secret of Ul- 
ster is that while it has become a 
metaphor for civil war, that war 
is confined to a few very small 

areas in Belfast and Derry, and 
foe rest of Northern Ireland is 
downright beautiful. 

For those who know the 
secret, Ulster is now a "great 
wee place” to retire. Housing 
prices are cheap, golf is plentiful 
and schools, social services, in- 
vestment subsidies and roads 
are the best in Britain — thanks 
to foe money foe British and die 
European Union pour in here. 

UnempJojonem is around 8 
percent, far better than in 

France, Germany or Italy. And 
: IRA does blow 

if per chance the , 
up your shop, the British will 
rebuild it free. 

I wonder if Northern Ire- 

About Britain and the Nazi Gold 

L ONDON — Last week's 
U.S. government report 
on the failure of the Swiss to 
honor their legal and moral ob- 
ligations to Holocaust surviv- 
ors and the Allies was 
damning. But the. document 
pointedly criticizes Hairy Tru- 
man and his State Department 
for not compelling Switzerland 
to return assets that Nazi Ger- 
many looted during the war. 

So now the current Swiss 
government has a convenient 
scapegoat The United States 
cannot hold itself up as a moral 
paragon in the current debate. 

But the real force behind 
letting Switzerland off the 
hook was not foe Truman ad- 
ministration but Britain’s La- 
bour government. 

British officials in 1944 de- 
rided the U.S. Treasury’s 
tough proposals few recover- 
ing the looted gold and other 

By Tom Bower 

American officials in the 
State Department supported 
the British policy. 

State Department officials, 
also shared British distrust of 

those in the Treasury Depart- 
ment and the White House who 

property stored in^ Switzer- 
id. After " 

land. After 1945, British of- 
ficials undermined and then 
sabotaged American attempts 
to humble the Swiss. 

Britain's motives were 
clear. It wanted to encourage 
trade in Europe to rebuild Bri- 
tain’s shattered economy, and 
sought loans on easy terms 
from Switzerland. 

There was also another 
motive. The Labour govern- 
ment wanted to discourage 
migration of Holocaust sur- 
vivors to Palestine, then a Brit- 
ish territory. Without money 
from foe Swiss, many Jews 
could not finance the move. 

wanted to pressure Switzer- 
land to release the Nazi loot 
and the bank deposits of Jews. 
The British called these Amer- 
ican officials ‘ ‘crusaders.” and 
pointedly noted that most of 
them were Jewish. 

Theoretical iy, it would have 
been simple to compel the 
Swiss to abide by their pledge 
to the Allies in March 1945 to 
return foe gold and surrender 
German property. Switzer- 
land’s survival depended on 
Allied goodwill to allow food, 
fuel ana raw materials to be 
transported across liberated 
Europe. Swiss banks and in- 
dustries, mostly blacklisted by 
tbe Allies for collaborating 
with the Nazis, faced ruin if 
the embargo was not lifted. 

But when Seymour Rubin, 
an American negotiator, ar- 
rived m London in August 
1945 to discuss Allied policy 
toward the neutral nations, he 
discovered that foe British in- 
tended to placate foe Swiss. In 
that very month, London 
eased its wartime freeze on 
Swiss assets in Britain- 

Seven months later, during 
talks in Washington about set- 
tling Allied claims, the British 

delegate told Mr. Rubin that it 
had been decided to remove all 
restrictions on Switzerland by 
June 1946. The result of those 
talks was Switzerland’s “fi- 
nal" offer of $58 million in 
compensation, although the 
Swiss at the time knowingly 
held at least $200 million in 
gold that the Nazis had looted. 

Washington accepted that 
offer because its negotiators 
understood that they were sty- 
mied by Britain's adamance. 
America would appear inef- 
fectual . foe State Department 
knew, if Britain began trading 
with Switzerland. 

As a result of Britain’s 
“victory.” Switzerland effec- 
tively ignored its agreement to 
transfer the looted assets to the 
Allies to help pay for Europe's 
reconstruction. The assistance 
for Holocaust survivors that 
Switzerland had promised 
was. with British encourage- 
ment. cynically withheld in a 
successful ploy to protect Ger- 
man and Swiss fortunes. 

After the Nazi defeat. 
Switzerland could have re- 
dressed its wartime immoral- 
ity. Instead it resorted to de- 
ception and delay. The U.S. 
report substantiates that judg- 
ment. But at a time when all 
countries’ actions arc being 
scrutinized, Britain, loo, must 
do its own accounting. 

The writer, author most re- 
cently of “Nazi Gold con- 
tributed this comment to The 
New York Times. 

land's cure and disease are foe 
same thing. The economic de- 
velopment that produced the 
cease-fire (and limits its break- 
down) cushions foe factions and 
reduces foe pressure on them to 
make the tough compromises 
needed to secure a lasting 
peace. There is an all too tol- 
erable balance here now be- 
tween violence and affluence. 

I am not rooting for Belfast to 
become Gaza or Soweto. But 
Rabin and Arafat, Mandela and 
de Klerk were produced in pres- 
sure cookers exerting great pain 
on their rank and file — nor by 
black-tie receptions and one- 
star Michel in restaurants (of 
which Belfast has two). 

In Belfast, political leaders 
can still afford to indulge their 
ideological fantasies. Gerry 
Adams, head of the IRA's Sinn 
Fein party, David Trimble, 
leader of foe Protestant Ulster 
Unionist Party, and Tony Blair. 
Britain's new prime minister, 
all did better than ever in the last 
elections — without having to 
promise any courageous initi- 

atives to get peace talks going. 

Successful peace talks would 
require Mr. Adams to risk get- 

ting foe IRA to declare an open- 

cease-fire, without any 
guarantees about foe timing and 
outcome of those talks. 

They would require Mr. 
Trimble to risk sitting down 
with Sinn Fein and negotiating 

a power-sharing arrangement 
with the Catholics. 

And they would require Mr. 
Blair to fracture foe bipartisan 
British consensus on Northern 
Ireland and negotiate with the 
IRA before it turned in every 
weapon or gave ironclad assur- 
ances that the cease-fire would 
not be broken again. 

Ail three would have to take 
these risks while their oppo- 
nents denounced them for 
"selling out." 

The public longing here for £ 
peace is very real, but it is pass- * 
ive. Life here is already 85 per- 
cent normal, and the political 
price forgetting foe last 15 per- 
cent is very high. 

It would require bringing into 
the peace process foe hartiest- 
core elements on both sides. - 
such as foe thousands of work- 
ing-class Catholics and Protest- 
ants who still live in the pockets 
of very high unemployment, 
and for whom foe Irish wars still 
burn while hot 

Brutal murders last week — a 
Catholic stomped to death by a 
Protestant gang in Portadown. 
and a Protestant gunned down 
by Catholic guerrillas in a Bel- 
fast bar — remind us how foe 
pockets of abnormality could 
blow apart foe web of normalcy. 
And such an explosion would 
really set back the chances for 
peace ... or would it? 

The New York Times 


1897: Cuban Question 

atorial jingoes will not have the 
support of President McKinley 
in their Cuban interference 
policy. The president said it was 
not his purpose to do anything 
which could be construed by 
Spain as supporting the insur- 
gents: that he would refrain from 
sending a warship to Cuban wa- 
ters until an emergency arose, 
and that he wanted more time to 
study the Cuban question before 
.starting on a new policy. 

based on foe procedure adopt eciff 
in foe case of foe Haymarket 
riots thirty-six years ago. when 
foe leaders of foe anarchists 
were either hanged or im- 
prisoned when they were found 
guilty of inciting to violence by 
their speeches and acts, and 
abetting an attack in which eight 
policemen were killed. 

1947: Mexico Beggars 

1922; Labor Agitators 

CHICAGO — Eight labor 
chiefs have been indicted for the 
murder of u police lieutenant. 
The police also arrested 200 men 
in foe round-up of labor agi tatore 
following foe murder of two po- 
licemen in a pistol buttle after foe 
dynamiting of two buildings. 
The action of the Grand Jury in 
returning foe indictments is 

MEXICO CITY — The beggars 
of Mexico's capital unanimous- 
ly agreed on “minimum de- 
mands to insure their work is as 
productive as possible.” ac- 
cording io •*£! Universal 
Grafico. ’ ’ The beggars decided 
henceforth not to accept foe> 
classic centavo, foe equivalent 
of one-fifth of an American cent, 
but to insist on being given tear 
centavos. In the event that a beg- 
gar is offered a mere centavo he 
w to “reject the aim in the most 
energetic manner he deems con- 
venient for foe occasion.” 

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Once Torture Is Allowed, 
There Is No Stopping 


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By Anthony Lewis 

OSTON — In Jerusalem 
^ ea ^. a S° * was interviewing 
Jacobo Timerman, who had sur- 

^ Jerusalem week. He described a young Pal- 
U vears am I »«* estiaian who over 17 day? was 

viv«H oq c j r~ — - “kept sleepless in contorted and 

£ k lcnt3 ^ 11 and excruciating posidoos with a 
hy an Argentine military stinking bag over his head," and 
tic asked me a nu*«ttr»r» shaken so violently 

^pfitme. He asked me a question. 

_ Would you allow agents of a 
legitimate government like Is- 
rael’s to torture someone," he 
ps ked, "if they thought he bad 
mfomtadon that could save 
people’s lives?" I hesitated, equi- 
vocated and finally said "yes/" 

"N o!" he said sharplyf “You 

cannot start down that road. There 
is no stopping." 

Last week a United Nations 
committee of experts condemned 
Israel for legalizing the use of in- 
terrogation methods that it said 
were: torture. They include violent 
shakin g and restraining prisoners 
in painful positions. The commit- 
tee found them a violation of the 
3987 Convention Against Torture 
and Other Cruel, Inhuman or De- 
grading Treatment, which Israel 
and 101 other countries have ac- 

. ;:d * 

officials rejected the 
committee's conclusion and 
denied that what its interrogators 
do amounted to torture. The tech- 
niques, officially described as 
“moderate physical pressure," 
were approved by a high-level Is- 
raeli commission in 1987. 

Israel’s secret service, the Shin 
Bet, says those methods are cen- 
tral to deal with terrorism. They 
are used only, it says, when the 
service is con vinced that a suspect 
has information that could prevent 
an imminent bombing or other 

attar lr 

Of course it is true, as the UN 
committee acknowledged, that Is- 
rael confronts "a terrible dilemma 
in dealing with terrorist threats." 
But reports from many sources, 
not least from Israeli human rights 
organizations, make it hard to be- 
lieve that the use of cruel tech- 
niques is as narrowly confined as 
officials say. 

A considerable number of pris- 
oners have been held and ques- 
tioned under such pressures for 
days and weeks — a fact incon- 
sistent with the claim that the 
methods are reserved for “im- 
minent” terrorist dangers. And 
most of the prisoners subjected to 
the brutal treatment are in the end 
released and never charged with 
any crime. 

Serge Schmemarm, the chief 
New York Times correspondent 
in Jerusalem, wrote a detailed and 
careful story on die issue last 

‘that his head 
flopped uncontrollably, infli cting 
terrible pain to his spine and 

In 1995 a Palestinian prisoner, 
Abd Samad Harizat, died in cus- 
tody. An autopsy concluded that 
he had died from being violently 

Many former prisoners have de- 
scribed the shaking, which is one 
approved method of "moderate 
physical pressure," and the stink- 
ing bag. The prisoner interviewed 
by Mr. Schmemaim also said that, 
three times a day. he was given 
five minutes to eat and use the 
toQet. I wonder how many officials 
would continue to defend such 
treatment if they had to endure it 

The South African security po- 
lice used torture in the apartheid 
years, and some conclusions were 
drawn from that experience. One is 
that the imerrogaiors wanted to get 
answers that would support the 
official picture of a vast Commu- 
nist-terrorist conspiracy against 
South Africa, and even suggested 
answers to match that picture. An- 
other is that statements given un- 
der texture were not believable. 

The chief purpose of the South 
African torturers, many believe, 
was to intimidate die victim's 
family and friends. 

Israel's situation is different, 
but some of the same elements can 
be seen in the use of torture. Mr. 
Schmemann spoke to a psychi- 
atrist who heads Physicians for 
H uman Rights-IsraeL, Ruchama 
Mart on. She said: "I believe the 
main reason for torture is to make 
the victim silent and frightened. 
All else is peanuts. Some 80 per- 
cent of Palestinians who are tor- 
tured are not indicted, but they, 
their family and their friends are 
rained and silenced." 

There is also the effect on the 

torturer. He is dehumanized by his 
acceptance of what he (toes as part 
of a normal life. An Israeli major 
described in Mr. Schmemann ’s 
story tormented a prisoner and 
then telephoned his wife to say 
that he would be home on time. 
That same mixture of the cruel 
and the mundane has been de- 
scribed to me by victims of torture 
in Latin America. 

The torturer is corrupted. So is 
his society. 

The New York Tones. 

Smoking’s Ravages: ‘Look What It’s Done to Me 9 

By Bob Herbert 

N EW YORK — Dr. William 
Cahan remembers dropping 
by the dressing room of Yui 
Brynner during the original run 
of ‘ ‘The King and I" in the early- 
1950s. "You could barely see 
that famous bald .head through 
the cloud of cigarette smoke,” 
said Dr. Cahan, a renowned can- 
cer surgeon and at the time the 
son-in-law of Mr. Brynner’s co- 
star, Gertrude Lawrence. 

"When you saw him up on the 
stage with his bare chest, he 


looked indestructible. But he 
smoked four or five packs a day. 
I used to tell him the same thing I 
told everybody, 'For God’s sake, 
cut it out* " 

Dr. Cahan would go cm to be- 
come the senior attending sur- 
geon at the Memorial Sloan-Ket- 
tering Cancer Center, where be 
dubbed his operating room 
"Marlboro country." He contin- 
ued trying to persuade Mr. Bryn- 
ner to give up cigarettes. In his 
memoir, "No Stranger to 
Tears," Dr. Cahan quoted the 
actor as saying: “Don’t worry, 
Bill. They’ll never get me." 

During a tour of the bosmtal 
last week, and later over lurch. 
Dr. Cahan talked of the many 
celebrities be has known — 
many of them close personal 
friends — who have succumbed 
to cigarette-related diseases. 

He told 

the story of a flight he 
Boston to New York i 

took from Boston to New York in 
the 1980s with Leonard Bern- 

stein and the lyricist Alan Jay 

Mr. Bernstein was chain- 
smoking, as usual. But an ob- 
viously jittery Mr. Lemer was 
trying to quit. He bit his nails, 
fingered a string of worry beads 
and talked about bow guilty he 
felt at having so much trouble 
catting cigarettes loose. 

Mr. Lemer finally quit in 
1986, but it was too late. A sus- 
picious shadow on an X-ray 
taken just a few months later 
turned out to be lung cancer. It 
was inoperable. Pneumonia de- 
veloped and Mr. Lemer was ad- 
mitted to Sloan-Keoering’s in- 
tensive care unit 

A young nurse on duty one 
night said, "I know this Mr. 
Lemer is very sick, but now I 
think he’s hallucinating." When 
a senior nurse asked why. the 
young nurse replied, "He says he 
wrote ‘ My Fair Lady .' " 

Dr. Cahan and Mr. Lemer had 
a big laugh over that the next day. 
But time was running ouL "Alan 
called Lenny,” Dr. Cahan said, 
"and tried to get him to quh. He 
said: ’Lenny, please. Look what 
it’s done to me.' ” 

Mr. Lemer died in June 1986. 
Mr. Bernstein in October 1990. 
In November 1990, Dr. Cahan 
wrote: * ‘So they got Lenny, too, 
those patrons of the arts.. To see 
him now reduced to dust by two 
lousy packs of cigarettes a day 

• The tobacco companies have 
succeeded so far in having it both 



When they are trying to entice 
you to smoke, they spend billions 
upon billions of dollars to make 
smoking seem like the most 
glamorous, adventuroas, pleas- 
urable and sexy pastime imagin- 
able. When a smoker, riddled 
with disease and dying in 
pain, goes into court for i 
the companies cry foul. It’s your 
fault, they say. You must have 
known smoking was dangerous. 
Everybody knows it 

In fact, most smokers find 
themselves trapped by the fol- 
lowing insidious combination: 
Smoking is extremely pleasur- 

able for large numbers of people. ' 
Nicotine, despite the bizarre 
testimony of tobacco executives, 
is highly addictive. Cigarettes are 
relentlessly advertised — men, 
women and children are bom- 
barded from birth to death with 
highly effective overt and sub- 
liminal messages that smoking is 
good. And, finally, most people, 
young and old, live their lives to 
some degree in a state of deniaL 
Cancer? It won’t happen to me. 

When Dr. Cahan saw Yul 
Brynner for the last time, in the 
mid-1980s, the actor was in a 
wheelchair, on his way to a ra- 

diation treatment at Memorial 
Sloan-Ketteaing. He had been dia- 
gnosed with lung cancer and the 
disease had spread to his spine. 
The two men chatted for a few 
minutes. As he was about to be 
wheeled away, Mr. Brynner 
turned and looked up at Dr. Ca- 
han. In a hoarse voice, he said, 
"Why die hell didn’t I listen to 

Mr. Brynner died on Oct. 10, 
1985. A memorial service was 
held at the Shubert Theater. 
Among the eulogists was Alan 
Jay Lemer. 

The New York limes. 


Rock of Ages 

Regarding “ Gibraltar Ponders 
Hong Kong’s Fate " (April 25): 

May I, as & former governor of 
Gibraltar, amplify on Spain’s 
hope that the handover of Hong 
Kong to China will be seen as a 
precedent for the return of the 
Rock to the Spanish crown. 

The British occupation of Hong 
Kong was. as the article points 
out, a commercial lease, with a 
fixed time limit that Britain has 
rightly honored. Spain ceded 
Gibraltar "In perpetuity" in 1713 
under the Treaty of Utrecht, 
which was confirmed in three sub- 
sequent major 18th-century Euro- 
pean settlements. 

Britain then pledged in the 
1969 constitution, which gave the 
Rock internal self-government, 
that there can be no change of 
sovereignty “against the freely 
and democratically expressed 
wishes of the people of Gibral- 

In the United Nations' decol- 
onization debates of the 1960s, Sir 
Joshua Hassan, the Rock’s chief 
minister, expressed the Gibraltari- 
an wish to become an independent 
state in close association with Bri- 
tain — orc of the three options for 

decolonization set out in (he UN 

Spain refused on the grounds 
that, under its reading of the 
charter, Gibraltar must be re- 

turned to Spain to restore the in- 
tegrity of the Spanish realm. 
Spain still refuses to accept 
Gibraltarian freedom of choice — 
hence its continuous and increas- 
ingly vicious harassment of the 

Aesop's fable of the wind and 
the sun competing to see which 
could be the first to persuade a 
traveler to take off his cloak 
provides an apt analogy for the 
current situation. 

The wind won the toss and tried 
first It blew and blew, reaching 
hurricane force at times; the trav- 
eler only clutched his cloak more 
tightly around him. The sun came 
out; was warm and friendly, and 
the traveler took off his cloak of 

his own accord. Despite the con- 
ciliatory efforts of the British gov- 
ernment, Spain continues to act 
like the wind, with equal lack of 

It is surely time, after years of 
barren negotiation, for the 
new British government to 
declare enough is enough and 
swing wholeheartedly behind 
Gibraltar’s demand for self- 
determination and decoloniza- 
tion in close association with 


Marlborough, England. 

The writer was governor and 
commander in chief of Gibraltar 
from J978 to 1982. 

Specious Speculation 

Regarding “Deep Blue Can 
Win, but Can It Think?” (Mean- 
while, May 7) by John Horgan: 

When Mr. Horgan gives ns his 
judgment as to what science and 
computers can do today, be is on 
solid ground, When he gives us 
his opinion as to what science and 
computers cannot do tomorrow, 
he is engaging in completely un- 
scientific — and not so innocent 
— speculation. 

Lake all such speculation in the 
past, his will soon be invalidated. 
The only question about thinking 
computers is: "How soon?” 


. Gif sur Yvette, France. 



||eptional PEOPi^ipjH;^ 

Boutiques Atidcmars Piguet: 

Paris l® - ! 271, rue Saint Honors, t£I. (01) 47 03 39 99 - Cannes: Hotel Carlton, 58, la Croisette, tdl. (04) 93 38 92 59- 
Internet: e-mail 

TUESDAY, MAY 13, 1997 
PAGE 10 

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Princess Diana dancing with John Travolta In 1985, top left, and in the same dress today, center; as ingenue and Dynasty Di, top right; Diana by Snowdon and in her tiara days, lower left. AJQ dresses are in Christie’s sale. 

Coming Out of the Closet, Diana Casts Off More Than Frocks 

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By Suzy Menkes 

International Herald Tribune 

L ONDON — The ink-biue vel- 
vet dress still fits like a glove. 
But die face doesn’t Twelve 
years after the dizzy blonde 
with the “Dynasty” hairdo cavorted 
with John Travolta on the dance floor at 
the White House, Princess Diana has a 
wash -and -go crop and a face marked by 
private grief. 

It stares out from the catalogue that 
. Christie's puts on sale this week detailing 
Diana’s castoff dresses that will be auc- 
tioned June 25 in New York. And what 
■ might have been just another celebrity 
sale catalogue has turned into a riveting 
personal story, as well as a fascinating 
; study of royal and fashion history. 

‘ The 80 outfits and luscious accom- 
panying photographs show the trails 
; formation of an ingenue English rose in 
! powder-blue tulle to a media-savvy 
celebrity in 1980s glitz, who finally 
sheds her velvet and sequins to emerge 
as a mature, independent woman. 

Yet seeing the princess at 35 pho- 
' jrd Snowdon in the fa- 

tographed by Lor 

miliar dresses — but minus tiara, blue- 
mascared lashes and radiant smile — is 
discomforting. Were we once fooled by 
the aura of royalty? Were dresses in the 

1980s really so excessive? .Or was Di- 
ana never really a fairy-tale princess'— 
■just an actress with a wardrobe-of ap- 
propriate gowns? 

The magical earlier pictures are the 
more poignant because with hindsight 
we know so much — like the eating 
disorder behind the snake hips sheathed 
in salmon-pink silk; or a reason for the 
romantic gaze above sugar-pink satin at 
die height of the James Hewitt affair. 

In retrospect, all the seductive and 
slinky outfits look like a dress rehearsal 
for the little black number worn on the 
evening Prince Charies confessed to 
adultery on prime-time televisioo. 

Finally the princess casts off her jew- 
els, throws out the hair spray and works 
out her body, until the broad shoulders 
in a tank-top dress become a metaphor 
for breaking free from the gilded royal 
cage. Think of the catalogue as a fem- 
inist fable of modern times. 

And all those Diana dresses can be 
yours — at a price. Since the 200-page 
catalogue itself will sell in its luxury 
purple leather edition at $2,000 (with 
other versions at $265 and $60). the 
dresses are likely to go for the same high- 
rise prices as the Jacqueline Onassis 
memorabilia. And that’s the idea. The 
proceeds will go to Diana's two favorite 
British charities: the Royal Marsden Hos- 

tal Cancer Fund and the AIDS Crisis 
rust, and their American equivalents. 
Whose inspiration was this cleansing 
of the royal closets? The answer is in a 
letter at.the front of the catalogue. In 
Diana's band on buff-colored Kensing- 
ton Palace paper c rested with a “D" 
and a crown, it reads: "the inspiration 
for this wonderful sale comes from just 
one person. ..our son William.” 

or to meet the Japanese emperor.. . . 

“We wanted to do something that 
was fab,” says ^Meredith Etheringum^—- 

T HE sale is revealing — about 
clothes as the expression of per- 
sonality, about the veneration 
of celebrity, the pitfalls of fash- 
ion and the mystique of royalty. 

The truth about the outfits is that they 
are mostly pretty awful — heavy- 
handed, dressmaker attempts to re-cre- 
ate the elegance and embellishment of 
haute couture. It says a lot for the natural 
grace and charisma of Princess Diana 
that she looked so lovely in a flowered 
taffeta frock swathed lumpily across her 
torso; or in star-spangled mile gowns 
(two of them!) that seem like a ca- 
ricature of the opulent eighties. 

So — we all make fashion mistakes. 
And she is dumping hers. Thanks to the 
marketing skills of the auction house, 
the gowns look glam on the printed 
page, with information about when they 
were worn — say to the Elysees Palace 

Smith, creative director of Christie 's, of 
the glossy “Dresses" that shows in foil- 
page close-up a flower-embroidered 
bodice, pearls nesting in whorls of rib- 
bon-lace or glittering paste buttons. The 
dresses goon display in London on June 
3, and whatever the merit of the clothes, 
the catalogue will be' an instant col- 
lector's item and fashion reference. 

Etherington-Smith admits that, apart 
from a cream silk dress embroidered 
with falcons as a compliment to the 
ruling host on a visit to Saudi Arabia, 
there is none of the ‘ ‘emblematic quality 
of tire best kind of royal clothes.’ 

‘ ' Royal dressing should be a metaphor 
for the way royals wish to be regarded for 
their role in society,” she says, citing the 
Scottish thistle or Tudor rose embroid- 
eries Queen Elizabeth has worn. 

Diana’s dresses are all by British de- 
signers, although the princess deserted 
them for Euro-flash as soon as she left 
the royal fold. They include the 
Emanuels (who (fid the wedding dress). 
Bruce Oldfield (high-voltage glamour). 
Victor Edelstein (understated elegance) 
and Catherine Walker (who made the 
bulk of the beaded evening gowns). 

They created fine feathers but no im- 

itr princess— except as first, 
t, and then’ a cover gift 
But the -essence of -successful -royal 

dressing should be that it focuses on the 
frame and not the sitter. If tile queen 
mother’s wardrobe were up for grabs at 
Christie’s, the style would be instantly 
identifiable, without a photograph. 

The same is true of Queen Victoria, 
who wore mourning black for 40 years. 
Or of the sinuous Edwardian elegance 
of Queen Alexandra. Or even the icy, 
bejeweled grandeur of Queen Mary. 
(The diarist Chips Charm on described 
her as “looking like the Jungfrau, white 
and sparkling in the sun.”) 


HOSE royal ladies — and that 
includes Queen Elizabeth — 
are above and beyond fashion, 
creating a style and sticking 
with it come shimmy dress, miniskirt or 
power shoulders. They may be judged 
dowdy or appear anachronistic, but that 
goes with the job description. 

By coincidence, an exhibition of roy- 
al dresses will be opened next week at 
the Museum of London. “In Royal 
Fashion” (from May 20 until Nov. 23) 
shows the Jane Austen-style of the 
doomed Princess Charlotte, who died in 
childbirth in 1817, and the clothes of 
Queen Victoria. The queen is presented 

in vignettes that recreate tfae be^pbed 
splendor of her coronation portrait by 
-Franz Xavie*^ Winteihalter, the -sweet 
simplicity of her wedding gown, hejr 
Highland fling with tartan and her 
dumpy, but still recognizable form, as 
an old lady in widow’s weeds. ; 

Both royal ladies loyally patronized 
British silk weavers and avoided excess. 
“There is a strong feeling against flip 
luxuriousness, extravagance ana frivolity 
of society and everyone points to my 
simplicity,’' reads a letter to the Prince ctf 
Wales about her daughter-in-law’s big 
spending. (This is Victoria to Edward, by 
the way. not Elizabeth to Charles.) 

“In comparison to today, they dressed 
to a certain standard,” says Kay Stanj- 
land, the exhibition's curator and author 
of its accompanying book. “There was 
disappointment at the time that they wer- 
en’t fashion plates. But Queen Victoria 
put it into words: It was not the done 
thing to dress as Diana has done.” ’ 

In the unlikely event that the Diana 
dresses were sold as one lot to a mu- 
seum, what would they tell the world 
100 years from now? The truth — as far 
as we can know ic That the clothes 
belonged to a fashionable young woman 
in the 1980s who wore them to vaunt 
herself and please her public — but wajs 
never comfortable in her royal skin. \ - 

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An Autobiography 

By Allegro Kent. 340 pages. 
526i>5. St. Martin's. 

America’s Prima 

By Maria TaUchief. With Larry 
Kaplan. 351 pages. $2750. 
Henry Holt. 

Reviewed by 
Laura Jacobs 

I F you look up “ballerina” 
in the Oxford English Dic- 
tionary, you will find the fol- 
lowing definition: “a female 
dancer, a bafier-giri.” This is 
wrong, as wrong as saying 
that any woman who sings 
opera is a prima donna; and it 
reflects a widespread miscon- 
ception, that toe shoes plus 
tutu equals a ballerina. 

Ballet is an art that stands 
on ceremony, and ceremony 


in Paris 




8, rue de S&vres, 


Tel: Ol 42 22 18 44 

bows to hierarchy. The corps 
de ballet is, by definition, 
many women; the ballerina, 
however, is as separate and 
solitary as the spinning fig- 
urine in a little gpri's jewel 
box. Indeed, she is a crown 
jewel, distinguished by cut 
and color, clarity and depth. 

Ir is a magical word — bal- 
le-ri-na — that dips and 
dances into the air, casting a 
spell. Generations of girls 
nave wanted to be one even 
before they knew what one 
was, somehow grasping that 
this creature is the pinnacle of 
. . . something. How does a 
ballerina come to be? What 
lifts her above the pack? 

With striking symmetry, 
two American ballerinas have 
just published autobiograph- 
ies: Allegra Kent's “Once a 
Dancer . . ." and “Maria 
Tallchief: America's Prima 

In outline, these stories are 
not so different. Both women 
grew up in small-town Amer- 
ica; each had a mother who 

K herself at the service of 
daughter's ambition: both 
trekked to California and 
once there took class with 
Bronislava Nijinska, sister of 
Nijinsky. Most important, 
both found their way into the 
class of George Balanchine, 
co-founder of the New York 
City Ballet, and blossomed in 
his ballets. The similarities 
end there. To cany on the 
metaphor of gems. Tallchief 
was a diamond. Kent, per- 
haps. a pearl. 

Bom Iris Cohen in 1937. 

Kent bad on early life that was 
the crazy kind you might find 
in the fiction of Flannery 
O’Connor, beginning with- 
Mom. Shirley Cohen was a 
Christian Scientist and free 
spirit whose world view was 
pinched with paranoia. Her 
acute snap judgments result- 
ed in irrevocable life changes. 
Kent’s kindly and charismat- 
ic father, a traveling sales- 
man. makes cameo appear- 
ances but. is mostly ahsenL 
Later, Shirley and Allegra 
find a surrogate in the pho- 
tographer "Bert Stem, who 

the dancing cure. With ballet, 
I bad finally found a way to 
express myself but not to re- 
veal my thoughts ... No one 
can touch silence.” 

“As I came to understand 
it, the ballets Mr. B. did for 
me evolved from my sup- 
sed inner life as much as 
a my dancing talent. He 

saw in me the psychological 

There is no chess column 
this week because of other 
chess match coverage. 

looked surprisingly like riarf 
and whom Shirley urged Al- 
legra to many. It was a ter- 
rible marriage, but to Shir- 
ley ’s way of thinking at least 
it kept Allegra from the 
clutches of Balanchine, who 
had a habit of marrying his 
young favorites. 

As Kent’s story unfolds, 
we see her tossing and turning 
between opposing forces: 
Mom vs. Balanchine, the 
stage vs. children, conformity 
vs. autonomy, plenty vs. 
poverty. “I’d always had a 
secretive side, which was not 
out of my mother's style.” 
Kent writes, explaining her 
passion for ballet. “She was 
accustomed to talking 
everything out — the talking 
cure. I wished to speak in a 
different way, soundlessly — 

raw material that could be 
molded and remolded into 
images of sensuality — un- 
realized and restrained, but 
there, just under the surface. 
The star inside the sapphire.” 
This is not only a convincing 
analysis of a difficult concept, 
it is beautiful writing. 

Kent, one feels, has never 
known quite where or who 
she is. Maria Tallchief, on the 
other hand, is utterly clear in 
her identity. She was the 
daughter of an Osage Indian 
chief and his Scottish-Irish 
wife, and grew up in relative 
stability and comfort. When 
she was a teen dancing with 
the Ballets Russes de Monte 
Carlo and was told to Rus- 
sianize her last name, she re- 
fused, proud of her heritage. 

Tallchief. bom in 1925, is a 
generation older than Kent. 
Though her mother was dot- 
ing, she left Maria alone once 
the career began. Though she 
tnougnt Manu too young, she 
allowed her to many — ’who 
else? — George Balanchine. 
In a poetic sense, this mar- 
J>age was the beginning of the 
New York City Ballet, a part- 
nership more than a romance. 
The ballet that was NYCB’s 

and Tallchief s first great suc- 
cess — "The Firebird” in 
1949 — is symbolic. Tailor- 
made by Balanchine for 
Tallchief, it not only explored 
her deep and darting exoti- 
cism, it suggested the fire of 
her commitment — classical 
ballet as eternal flame. 

In fact, Tallchief was a 
model to younger dancers, 
Kent among them, setting a 
standard for technical author- 
ity. close musicality, and al- 
most grave trust 

Offstage, Tallchief was 
equally commanding. When 
Kent skipped a London tour 
because her husband was act- 
ing up. TaUchief reprimanded 
her. "Oh. Allegra. husbands 
come and husbands go. but 
your dancing is the thing 
rhar’s important.” 

Kent says admiringly. 
“This woman could have 
been a marine drill ser- 

Unfortunately, she is not 
much of a writer. Tallchief s 
tunnel vision, the very quality 
Balanchine cherished m her, 
makes for cut-and-dried 
prose and on astonishingly 
unexamined life. 

The most interesting part 
of her autobiography is her 
marriage to Balancouie, in 
which we ger a few peeks . 
behind the curtain, snapshots 
of the genius at home. One 
wants more Mr. B. 

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Laura Jacobs , dance critic 
of the New Criterion, wrote 
this for The Washington 



km 2005 

Herat i>SKEribunc 


Beyond Development: 
Rediscovering Nature's Wisdom 

I > 

r.t tp : .• . .. .• v; _v : : j n e; . or. • :v i ac-? 

The 2005 World Exposition, Japan 

f — .. 

TUESDAY, MAY 13, 1997 

PAGE 11 

ill Antitrust Chief Demands Changes in Boeing Takeover of McDonnell 

By Tom Buerkle 

International Herald Tribune 

B ESSELS In the clearest sign of 
^ulatory turbulence for Boeing Co.’s 
flanned W3.7 billion takeover of Mc- 
Corn., Europe's anti- 
nist cmrf said Monday dial he would 
temand changes in the deal toprevent foe 
J.5. aerospace giant from dominating its 
suropean rival. Airbus Industrie. 
i K arel van Miert, the competition 
commissioner for the 15-nation Euro- 
gean Union, said the takeover was 
^cleariy unacceptable as it now 
stands.” In addition to citing the re- 
puhing company’s 60-plus percent 

share of the global aircraft market, he 
called Boeing's recent multibillion-dol- 
lar agreements to become the exclusive 
supplier to AMR Corp.'s American Air- 
lines and Delta Air Lines Inc. “totally 
unacceptable” because they precluded 

Mr. van Miert said be would spell out 
the modifications he is demanding, in a 
letter known as a “statement of ob- 
jections,” to the two U.S. companies 
within 10 days. European Commission 
officials indicated that the letter could 
include a demand to renegotiate the 
airline contracts. 

“Obviously, they will have to come 
up with remedies to our doubts,” a 

spokesman for Mr. Van Miert said. The 
European Commission, the EU exec- 
utive agency, will make a final ruling on 
the takeover by July 31. 

The comments, which Mr. van Miert 
made in Stockholm, essentially reiter- 
ated concerns he made during a U.S. trip 
last month. But the announcement of the 
letter provided the first official con- 
firmation tfiat European authorities 
were prepared to block the consolidati on 
unless significant changes were made. 

The warning, moreover, could put 
Europe on a collision course with U.S. 
antitrust authorities. Although the Fed- 
eral Trade Commission has not indi- 
cated its stance, the deal is widely 

viewed in the United States as part of a 
sweeping consolidation of the defense 
industry that has been condoned, and 
indeed encouraged, by the government. 

A European attempt .to block or se- 
riously amend the takeover could affect 
trans-A tlanti c relations as negatively as 
the recent dispute over U.S. sanctions 
against foreign companies that trade 
with Cuba, one U.S. official said. 

Jim Hank, who bandies government- 
al affairs for Boeing in Brussels, said the 
company was expecting objections from 
the commission but was confident it 
could resolve the concerns. He said Mc- 
Donnell would not significantly affect 
competition between Boeing and Airbus 


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I . . ,5»J. it 

Locks for the Minivan 
:er a Decade in High 

By Robyn Meredith 

L _ Washington Post Service 

‘ . DETROIT — Barbara J. Byer 
couldn’t take it any more. 

[ s For eight years, she had been climbing 
into ha - maroon minivan to drive her two 
children from gymnastics and Brownie 
L meetmgs to softball and school. 

“I don’t want to be a dull mom driv- 
ing a dull car,” Mrs. Byer said. 

So she traded for a shiny white Ford 
Expedition, a brawny .sport utility 
vehicle with room enough for her kid s 
and their friends. 

“There’s nothing wrong with being a 
mom,” said Mrs. Byer, 38, who lives in 
suburban Detroit. But she chose a sport 
utility vehicle last year instead of a 
minivan, she said, because ‘ ‘I wanted to 
be a mom, yet I wanted my own iden- 

Mrs. Byeris not alone. After more than 
a decade of steadily rising sales, miniv an 
sales are falling. No one disputes that 
foey are roomy, practical ami cheaper 
man most of the sport utility vehicles and 
some of die sedans that people are buying 
instead. But more and mare people are 
rejecting the image they project. 

“In our culture right now, there is a 
lot of tension between what is for me 
and what is for my kids,” said Madelyn 
Hochstein, president of DYG Inc., a 
social and market research firm in Dan- 
^bury, Connecticut. “The minivan sort 1 
oflabels you asu Suburban parent Some 

people want to be more than that ” 

Automakers had not expected this. 
They are still building up production to 
make even more vans, and there is a 
parade of new models rolling into show- 
rooms. Growing competition means 
good deals for buyers. But it also sug- 
gests shrinking profits for automakers in 
the future, especially for Chrysler 
Carp., which invented the mini van and 
has bathed in a river of cash and profit 
from it 

Already, rebates and other costly 
sales incentives have begun to crop up. 
Ford Motor Co. is offering a $1,000 
discount to buyers of its Windstar mod- 
el, and Chrysler is giving away its most 
popular option, a second sliding doorfor 
which it had charged $595. 

“The minivan market is in a real 
f unk, ” Jade Kirnan, an » uto analyst at 
Salomon Brothers, said. 

When Chrysler introduced the first 
minivan in 1983, itbecame an American 
success story. Here was true innovation 
from Detroit, which desperately needed 
a hit The minivan attracted a generation 
of buyers, many of whan had not been 
in a Big Three showroom in years. 

Imitators followed, but Chrysler kept 
the pole position in a market that at its 
height in 1994 saw 1.3 million minivans 

By last year, sales had fallen 4 percent. 
They still account for a major part of the 

See CHANGE, Page 15 . 

On a Plateau 

Just five years after mini vans were introduced in the 
United States, they began to outsell station wagons 
and to supplant them as the archetype of suburban 
family transportation. But mini vans’ 
rapid growth has stalled in 
recent years. 

because it won only 2 percent of new 
European orders for wide-body jets last 
year and none for narrow-body planes. 

“This is principally part of what the 
U.S. government lias seen as necessary,” 
he said, “namely the consolidation of the 
UJS. defense industry. The commercial 
side of ft is relatively minor.” 

Mr. Hank said Boeing expected the 
Federal Trade Commission to take the 
lead is the antitrust review because tire 
deal concerned two U.S. companies with 
no manufacturing presence in Europe. 

Washington and Brussels have agree- 
ments to cooperate on antitrust mailers, 
but they do not require the home-country 
regulator to take the lead Moreover, the 
U.S. regulator follows a slower timetable 
and may not rule until the end of sum- 
mer. after the EU deadline, although 
Boeing officials say they hope to receive 
a clear indication as early as June. 

The political stakes have been build- 

ing since Boeing announced in Decem- 
ber its plan to acquire McDonnell. Tbe 
tension is not surprising, given that Boe- 
ing is the top U.S. exporter and Airbus is 
Europe's leading government-backed 
high-technology champion. 

In a recent meeting with senior U.S. 
officials, European Commission offi- 
cials argued that the takeover should 
force a renegotiation of an EU-U.S- 
agreement limiting government subsi- 
des to aircraft makers. They contended 
that the acquisition of McDonnell’s big 
defense business would give Boeing ac- 
cess to Pentagon funds that could cross- 
subsidize its civilian aircraft business. 

Senator Slade Gorton, a Republican 
from Washington, die home state of 
Boeing, complained last week in a letter 
to President Bill Clinton that Mr. van 
Miert was biased motivated more by a 
desire to defend Airbus than to apply 
European antitrust rules. 

Allen Will Step Down as Head of Delta 

“ CompSed by Our Staff Fnm Diapm*ts 

ATLANTA — The chief executive of 
Delta Air Lines Inc., Ronald Allen, an- 
nounced unexpectedly Monday that he 
would retire at the end of July. 

Mr. Allen, 55, led the carrier into a 
costly European expansion and an ag- 
gressive cost-cutting campaign. 

But analysis said tbe airline 's d ire ctors 
had disagreed with Mr. Allen’s plans to 
demote his chief financial officer, Thomas 

RoeckJr., as well as his attempt in Decem- 
ber to acquire Continental Amines. 

“Allen was acting too independently 
of the board and not keeping than in- 
formed” Scott Hamilton, a Dallas- 
based airiine-industry consultant, said 

The airline named Maurice Worth, 
56, head of customer service, as acting 
chief operating officer. Delta has posted 
$550 milli on in profit over the past two 
years. (Bloomberg, AP) 

Chevrolet Venture 

1.4 million vehicles sold 

1994 peak: 1,265^75 

(8.4% of all cars and 
fight trucks sold) "“2 



'••• (8.0%) 

Blue Chips Surge to a Record 
Amid Stable Inflation Outlook 

1 — 

*83 ’84 ’85 ’86 '87 *88 ’89 ’90 ’91 ’92 ’93 *94 '95 ’96 
Source*: JJD. Powers Assodatne (mid-vans): WknfsAuto fnfobantc (station wagons) 

Conned by Ow Stiff Fran Disptscha 

NEW YORK — Stocks closed at re- 
cord levels Monday as prospects for 
stable prices and interest rates improved 
the outlook for corporate profits. 

The Dow Jones industrial average 
rose 123.63 points, to 7,293.16, as ad- 
vancing issues outnumbered rWlining 
ones by more than 2 to 1 on foe New 
York Stock Exchange. International 
Business Machines, Hewlett Packard 
and Du Pont led foe Dow's advance. 

“In the long nm, equities are die best 
asset categories to be invested in,” said 
Mark Donovan, an executive at Boston 
Farmers Asset Management. “I wouldn’t 
feel like inflation here is a big threat.” 

A resurgent technology sector also 
led broader stock indexes higher. The 
Nasdaq composite index rose 9.13 
points, to 1,344.18. while the Standard 
& Poor’s 500-stock index rose 12.93 
points, to 837.71. 

A strong Treasury bond market 
helped stocks. Bonds rose amid opti- 
mism that economic reports due this 
week would show a drop in retail sales 
and tame inflation. That could keep the 
Federal Reserve Board from raising in- 
terest rates when it meets next Tuesday . 

“We’re looking for weaker numbers 
than in the first quarter of foe year,” said 

See STOCKS, Page 12 

Thinking Ahead /Commentary ^ 

Latin America Feels a Chill From U.S. 

By Reginald Dale ”* thearmmor 

International -Herald Tribune . , 

— — — — — — — m the regroi 

W ASHINGTON — For years the United Stales conc entrate 1 
urged its Latin American neighbors to open up Baton less 

their economies, to little avail. Now the boons that his “Yi 
on tbe other foot The Latin countries have singer’s note 

become enfousiastsforfreertrade, and itis the United Stares up wereasin, 

foat is dragging its feet To restore 

Thai striking role reversal is one big reason U.S. influence trade initiatr 
is ffafitmng in an area Washington used to consider its likely to sfe 
“backyard/' Another is foe palpable 
lack of interest in Lati n America shown , 

by President Bin Oinioauntfi his visit Latin Americans are 

roMexicaCosa Rica and the Carib- tocreasins?y loo]dng to 

Mr. Clinton did briefly focus on Lar- Europe and Asia for 

in America at the December 1994 re- * . , , , . 

gjooal summit meeting, at which lead- eeononuc leadership* 
as agreed to negotiate a Free Trade 

Mr. Clinton’ strip — foe first of force to Latin America in 
foe coming months — is intended to reassert U.S. interests 
in foe region. He promises foat tins year he will finally 
concentrate on Latin Ame ri ca. 

But unless he brings more vision to foe task, there is a risk 
that his “Year of T»tm America,” just like Henry Kis- 
singer’s notorious “Year ofEurope’ ’ 24 years ago, will end 
np increasing rather than reducing tensions. 

To restore U.S. leadership, Mr. Clinton must pursue the 
trade initiative launched in Miami Trade is the issue most 
likely to strike a positive chord with Latin American 
governments — in stark contrast with 
' foe other two big items on the table, 

IDS are Washington's anti-drug and immi gra- 

l r tion policies. But Mr. Clinton’s hands 

K>Kmg to are tied by a lack of the necessary fast- 

sifl f or track negotiating authority to engage 

# in major trade initiatives, 

lership. his his own fault For more than two 

years, he has allowed U.S. trade policy 

to be dictated largely by domestic pol- 

AreaLof the Americas that would in- _ _ .. . tobe dictated IargeJyby domestic pol- 

coroorate every country in the region except Cuba by 2005. dies — at a tone both Congress and foe public are m- 
Bnt foe Miami meeting turned out to be foe last hurrah creasmgly hostile to intern a ti o n al trade. Most unpopular of 
before Mr Clinton’s interest in trade initiatives vanished in all is the inclusion of Mexico in the North American Free 
foe nm-up'to the presidential election last year. Mr. Clinton’s Trade Agreement, starting in 1994, Washington’s first ven- 
straiemcrieglect of tbe region has effectively reversed foe tore into free trade with a Latin American country. 

Monroe Doctrine, which was intended to ke^ acquisitive ft is not the best moment to propose even n fore f ro trade 

vaemunin Washington, Latin Americans are mcreasingiy 
looking to Europe and Asia far economic leadersfrp. 

Last year, for the first time, Latin America traded more 
with Europe'than with the United States. Mercosur ——the 
rapidly developing customs union incorporating Brazil, 
Argentina, Uruguay and Paraguay — is exploring a pref- 
erential trade pact with foe European Umon. 

waiting for Washington. Led by Brazil, Mercosur has es- 
tablished Jinks with Chile and Bolivia, bringing three-quarters 
afLatin American trade under its banner. As tbe bloc expends 
— perhaps ultimately to a contincntwide South American 
Rre Trade Area — ILS. options are becoming narrower, 

R is not too late. The Umted States stDl wields enormous 
economic power, far more than Mercosur. It is foe market 

wr May tZ 

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PAGE 12 

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Very brieflyi 

• Fred Meyer Inc. said it would buy Smith's Food & Drug 
Centers Inc for $1.95 billion in stock and assumed debt, 
creating one of the hugest U.S. supermarket chains. 

• Chrysler Corp. said it would begin exporting three car and 
light-truck models to Egypt from the United States and Europe 
this month to try to lift sales. 

• Russell Stein, a 1 9-year vetetan of Merrill Lynch & Co. now 
a broker at Oppenhehner & Co., was accused by the Securities 
and Exchange Commission of having used his position as a 
money- manageme nt consultant to steer business to a friend’s 
company; Mr. Stein said he would fight the allegation. 

• Paxson Communications Corp. said it had agreed to buy a 
New York television station, WBIS.from ITT Corp. and Dow 
Jones & Co. for $257.5 milli on. 

• Gannett Co. said Mark Silverman would become publisher 
and editor of The Detroit News, succeeding Robert Giles, who 
is scheduled to retire June 1. 

• Forbes magazine said six sponsors had committed $250,000 

each toward one area of the magazine’s new Web site. Digital 
Tool, for one year. Bloomberg. NYT. Reuters 

Weekend Box Office 

• The Associated Press 

LOS ANGELES — “The Fifth Element” dominated the 
U.S. box office over the weekend, with a gross of $ 1 72 mfUioo. 
Following are die Top 10 moneymakers, based on Friday's 
ticket sales and estimated sales for Saturday and Sunday. 

l.TheHftti EfumenJ 

(Calumbkr Pictures) 


ZFothcrt Doy 


V) mlfian 

a Breakdown 



4. Austin Pawais 

(New Uim Cinema) 

S7.1 mSDon 

5. volcano 






7. Ranr aid MkW»ltai*n 



a. Anaconda 

(Columbia Pictures) 


9. The Saint 



10. Murder all 600 





Echo Star’s Suit Seeks $5 Billion 

CtmrOedbr Or Sk 8 From DbpmMt 

ENGLEWOOD, Colorado — 
EchoStar Communications Corp. 
said Monday it had expanded its 
suit against News Corp. and would 
seek $5 biOioa in damages for ab- 
rogating a joint venture, and it said 
it would run soon out of capital to 
expand its satellite-TV business. 

The company also said it 
planned to seek another partner to 
build its satellite network. News 
Corp. had agreed to invest $1 bil- 
lion and form a broadcast service 
intended to reach 75 percent of 
U.S. homes by 1999. 

EchoStar expanded on Friday a 

lawsuit it filed in federal court in 
Colorado a day earlier. In die orig- 
inal lawsuit, EchoStar sued News 
Corp. for breaking a promise to 
lend it $200 million. 

Their agreement began unrav- 
eling two weeks ago as the News 
Corp. chairman. Rupert Murdoch, 
and the EchoStar chairman, 
Charles Ergen, clashed over con- 
trol of the venture. EchoStar said 
April 28 that News Corp. might 
end its investment unless EchoStar 
abandoned its security-card sys- 
tem provider, Nagra S A and used 
News Corp.’s system instead. 

The lawsuit is “without merit 

and we'll contest it,” a News 
Corp. spokesman, Jim Plan, said. 

Analysts say EchoStar is likely 
to open talks with PrimeStar Part- 
ners LP, a satellite- television pro- 
vider. A News Corp. spokesman, 
asked whether that company was 
co nsidering an alliance . with 
PrimeStar. said only, “There are a 
lot of options we're looking at.” 

EcboStar’s shares were down 
75 cents at $12,875 in afternoon 
trading on the Nasdaq stock mar- 
ket News Corp.'s American de- 
positary rece i p t s were down 12.5 
cents at $18,625 on the Big 
Board. (Bloomberg, Reuters) 

Yen Rises, but Dollar 
Advances in Europe 

MERGER: Guinness and Grand Met in $33 Billion Giant 

Continued from Page 1 

of the merger — or 60 pence a share 
— executives also would seem to 
have won over their shareholders. 

The lone, loud voice of dissent 
came from Bernard Arnault, the 
chairman of Guinness’s largest 
shareholder, the French luxury 
goods and Champ a gne maker 
LVMH Moet Hennessy Louis Vuit- 
ton S A He and a director of Guin- 
ness voted against the proposed 

“I’m not sure that in the longer 
term that relationship between 
Guinness and Arnault is that 
stable,'’ said John Wakely, an ana- 
lyst with Lehman Brothers. 

Guinness executives brushed off 
all talk of a possible breakup with 
Moet Hennessy, the LVMH off- 
shoot in which Guinness holds a 34 
percent stake as a result of a nearly 
8 -year-old 50-50 joint venture with 
tiie French company to distribute 
their respective spirits. Cham- 
pagnes and Cognacs. 

That venture has paid off hand- 
somely for berth firms, ft is seen by 

some observers as nothing less than 
the inspiration for Guinness tying 
tiie knot with Grand Met which will 
also rely heavily on a combination 
of cost-savings and enhanced mar- 

Grand Metropolitan and 
Guinness 7 996 sales 

Grand M e tro pol itan PLC: 

£7,907 million 

Drinks- JAB Rare Scotch, Rotaii- 
SmlmoffVcx&a, others Btgje/- 1 

Food-PS^UBgBggmsLjr others 

Guinness PLC: 
£3,562 matron 

| Source: Bkxmboty 




ket clout on the distribution side for 
its expected gains. 

Still, there could be trouble ahead 
because the proposed creation of 
GMG Brands would roaghly halve 
Mir. Arnault’s present 14 percent 
holding in Guinness and likely 
would cost him his seal on the board 
in the process. 

“The logic of this deal is su- 
perb,” said Dermot Carr, an analyst 
atNikko Securities. 

It will be confined, however, al- 
most exclusively to the wine and 
spirits side of the bosiness. 

ft is there that the bulk of the cost- 
savings, expected to reach £175 mil- 
lion per annum by tiie third year, 
will come. And it is there chat the 
axe will fall on 2,000 of tiie com- 
bined unit’s 20,000 jobs. The other 
units of the new group will be Bur- 
ger King, Pillsbary and Guinness 

Separately, Grand Met said its 
first-half pretax profit slipped to 
£428 million, from £449 milli on, as 
it took a one-time charge related to 
the sale of its Aunt Nellie’s Farm 
Kitchens nnit. Sales fell to £431 
billion, after £435 billion. 

CaxpBrdt? OurSt^Frax DapPcha 

NEW YORK — The dollar fell to 
its lowest level against the yen in 
more than three months Monday 
after a Japanese official said the 
dollar was approaching a “good” 
level . . 

Deputy Finance Minister Ta- 
dflghi Ogawa said the dollar s 5 
percent decline against the yea last 
week was consistent with the Group 
of Seven nations’ April 27 agree- 
ment, which said that exchange 
rates “should reflect economic fun- 

The dollar rose against most 
European currencies, however, 
af t pr a Bundesbank official said 
German interest rates would remain 
steady for now. 

“Clearly die Japanese were try- 
ing to jawbone the dollar down, so 
they are now expressing satisfac- 
tion with the move,” said Ric hard 
Koss, currency strategist at MFR 
Inc. “Die question now is whether 
you can kick a pebble down the hill 
and keep it from becoming an ava- 

The dollar finished at 1 1937 yen 
in New York compared with 12030 
yen at the close Friday. 

Gains by the pound and the yen 
against the Deutsche mark also 
helped the dollar rise against Con- 
tinental European currencies. When 
tiie pound and the yen rise against 
tiie mark, the dollar frequently does 
too, as speculators seek multiple 
opportunities to sell die German 

The dollar rose to 1.7070 DM 
from 1.6875 DM and to 5.7565 
French francs from 5.6910 francs. 
Against the Swiss franc, it rose to 
1.4395 from 1.4235. 

Sterling rose after the British 
chancellor of the Exchequer, Gor- 
don Brown, said he did not want the 
pound to re-enter Europe’s ex- 
change-rate mechanism now. Ster- 

ling fell last week after talk spread 
that tiie new Labour Party govem r 
merit sought to put the currency 
back in the mechanism. The pound 
rose to $1.6235 from $1.6226. 

Reiraut Jochimsen, a Bundes- 
bank council member, indicated 
that rates would not change much in 
the near term. 

“Given the very favorable mon- 
etary conditions, demands for fur- 
ther rate cuts by the Bundesbank 
have largely Mien silent,” he 

Regarding the yen’s recent 
movements, Eisuke Sakakibara, the 


senior Japanese Finance Ministry 
official known as “Mr. Yen,” said 
he expected the market to “settle 
down.” Finance Minister Hiroshi 
Mitsuzuka made a similar remark. 

Speculation that Japan’s econ- 
omy is rebounding and that the 
Ba nk of Japan will increase interest 
rates soon also helped out the yen. A 
strong economy and rising rates 
would make Japanese bonds and 
other assets attractive to foreign in- 
vestors, who need yen to purchase 

“The perception is that the Jap- 
anese economy is healthier than an- 
ticipated,” said John McCarthy, 
manager of foreign exchange at 
1NG Baring Capital Markets. 

Still, some analysts doubted the 
dollar would continue to fall against 
the yen. “It's too soon to say it’s the 
beginning of a trend lower,” David 
Gilmore of Foreign Exchange Ana- 
lytics said. He attributed the shift to 
* 'market expectations for economic 
prospects in Japan — that Japan's 
economy will grow sufficiently this 
year to warrant higher interest rates 
— and the belief that the U.S. econ- 
omy is beginning to slow.” 

(Bloomberg,- Reuters) 

STOCKS: Dow Roars to Another Record as Investors Bet Data Will Show Inflation Is Under Control 

Continued from Page 11 

Robert Giordano, a fund manager 
with Bank Leumi Trust Co. “That 
would take out another reason for 
them to tighten.” 

Die price of the benchmark 30- 
year Treasury bond rose 1/32 to 96 
23/32, cutting its yield to 6.88 per- 
cent from 6.90 percent Friday. 

The Commerce Department was 
set to issue retail sales data Tuesday, 
and analysts predicted the report 
would show the first monthly de- 

cline this year. Data on consumer 
and producer prices are also sched- 
uled to be released this week, as are 
die Fed’s industrial production and 
capacity utilization results. 

Investors are watching for the re- 
ports to back up recent evidence that 
the first quarter's 5.6 percent wwflwl 
growth rate has started to slow. That 
could persuade Fed officials they do 
not need to raise rates to cool tiie 
economy at next week’s policy 

IBM rose 4% to 171% as the 

victory of the company’s Deep Blue 
supercomputer against the chess 
champion Garry Kasparov added to 
optimism about sales and earnings. 

American depositary receipts 


representing shares in the French 
luxury-goods company LVMH 
Moet Hennessy Louis Vuition rose 
2 V4 to 50% after- analysts said the 
company would sell its 6.6 percent 
stake in tiie $33.4 billion company 

to be formed by the merger of Guin- 
ness and Grand Metropolitan, as 
well as its entire drinks business. 

Shares in Citrix Systems soared 
13% to 33% after Microsoft Corp. 
said it would license Citrix software 
and develop further products with 
the company, an agreement valued 
at as much as $175 million. 

Citrix makes software that allows 
simple computer terminals, such as 
those used to take airline reserva- 
tions, to work with Microsoft's 
Windows NT operating system. 

Stock in Lycos, which makes pro- 
grams to search the Internet, rose Vi 
to 1 5% after the German media com- 
pany Bertelsmann said it had joined 
with Lycos to develop an Internet- 
search program for Europe. 

Shares in Lehman Brothers Hold- 
ings fell 2% to 37 as investors real- 
ized that talk of a takeover of Leh- 
man was only rumor. Die stock 
surged last week amid speculation 
that Lehman would be taken over by 
a commercial bank or a larger se- 
curities firm. (Bloomberg, AP) 

4 P*R 

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Hongkong Bank Is Thriving 

As New Era Nears, HSBC Remains the Market’s ‘Rocket 9 

Investor’s Asia 

Castling In on Clout 

TICKER TENSION Taiwan investors 

S t iTJ? CkS / efl "SS re P° rt 5 of o cabinet shofllS and 
Su foreign ftinds. The benchmark index finished at 
/^ooA4, dowD 3.72 percent, its biggest dive in al most a year. 

■ * 

India Grants Airline 
*$90 Million in Aid 


NEW DELHI — The government 
has decided to inject $90 million 
into the ailing state-owned carrier 
Indian Airlines to help it stop post- 
ing losses, officials said Monday. 

An Aviation Ministry official said 
New Delhi had agreed to pay $55 5 
million as compensation to Indian 
Airlines for losses it suffered when 
its fleet of A-320s was grounded 
after a crash in 1990, they said. 

The funds will enable the carder 
to lease five Airbus aircraft, for 
which a global tender has already 
been floated, die officials said. 

New Delhi has also accepted the 
recommendations of an advisory 
panel, agreeing to provide $34.5 
million in additional funding to tarn 
around Indian Airlines, they said. 

The airline, which has posted 
losses totaling $166 million since 
. 1993. has forecast a profit of $26 
^million for the year mat began in 
-March. But an airline executive 
Said, “This can be achieved only if 
we expand our fleet and replace 
aircraft which are more than 15 
years old.” 

Twenty-two of Indian Airlines’ 
52 planes are due for replacement. 
Its fleet consists of 10 A-300s, 30 A- 
320s and 12 Boeing 737s. 

Its board of directors is to meet in 
Bombay this week to discuss how to 
use the new government funds. 

Indian Airlines has had problems 
since the ending of its monopoly six 

competitors. The carrier’s opera- 
tional costs have increased signif- 
icantly, and it has lost many of its 
veteran pilots. 

The Aviation Ministry official 
said Indian Airlines would need 50 
new planes at a cost of about $833 
million to enable it to compete in the 
Asian market, which is growing at 
10 percent annually. 

The carrier has said it will not 
seek to purchase new aircraft anti] 
funds become available. But an In- 
dian newspaper reported Monday 
that Boeing Co. and the European 
consortium Airbus Industrie had 
maA- presentations to In dian Air- 
lines recently. Hie two are com- 
peting to sell 12 100-seat and 10 
250-Seat planes to the airline in a 
deal that would be worth about 50 
billion rupees ($1 .4 billion). 

In dian Airlines flies to 56 domes- 
tic and 17 overseas destinations. 

The government plans to com- 
bine Indian Airlines with the coun- 
try’s flagship carrier. Air India, to 
improve both airlines’ financial 
situations. Air India is expected to 
post a loss of $78 million for its 
current year because of increased 
competition and higher interest and 
operating costs and navigational 
charges. (AFP. Bloomberg) 

Rlivmbcrj! iVtu-s 

HONG KONG — For 132 years, the fortunes of 
Hongkong & Shanghai Banking Corp. have been syn- 
onymous with those of Hong Kong itself. 

Fifty days before the British colony is to revert to 
China, they still are — for the stock market, at least. The 
bank that once financed British imperial trade in silk, 
opium and tea is the driving force behind Hong Kong's 
benchmark Hang Seng Index this 
year. Single-handedly, HSBC 
Holdings PLC has lifted ihe index 
5 percent since December and 
drove it to a record intraday high 

“HSBC is the rocket behind the 
index," said Aureole Foong, a 
fund manager at Peregrine Asset 
Management (H.K.) Ltd. “With- 
out it, the Hang Seng has gone 

The rally in HSBC — which 
accounts for one-fifth of the value 
of the Hang Seng Index — may 
say more ~ about the financial 
strength and earnings prospects of 
one of the world's largest banks 
than it does about investors' con- 
fidence in a Hong Kong under Chinese rule. Twenty- 
four of the index’s 35 slocks have fallen this year. But it 
also shows that many are betting that British companies 
closely associated with colonial rule can continue to 
prosper after the handover July 1 and that banks* costs 
and lending will not fall prey to rising interest rates. 

HSBC, though, has more going for it than many other 
Hong Kong and British banks. By expanding beyond the 
territory over the years, most recently in markets such as 
Brazil, it has sought to make sure its profit will keep 
growing even if one of its markets sours. Today, HSBC 
operates about 1 .900 offices in 20 countries in Europe and 
1,600 offices in 19 countries in Asia. Its pretax profit last 
year rose 23 percent, to £4 S2 billion ($7.32 billion). 

“HSBC isn’t just Hongkong Bank anymore," said 

Source: Bloomberg 

Keith Irving, a bank-industry analyst ai Merrill Lynch 
& Co., which has an "accumulate" rec ommenda tion 
on HSBC stock. “It is a truly global bank, and people 
are willing to pay up for this kind of quality." 

Merrill is not the only company that likes HSBC. 
This year, Lehman Brothers Inc.. Nikko Research Cen- 
ter. Salomon Brothers Inc., Morgan Stanley & Co_ 
Goldman Sachs & Co.. KJeinwort Benson Ltd. and- 
ABN-AMRO Hoare Goveit all 
have issued "boy," "outper- 
form” or “priority list" recom- 
mendations on HSBC. 

Judging by the stack’s perfor- 
mance, investors appear to have 
taken those recommendations to 
bean. HSBC Holdings PLC, the 
parent company of Hongkong 
Bank, has risen about 15 percent in 
the past seven trading days. It 
closed unchanged Monday at 227 
Hong Kong dollars ($28.02) a 
share, unchanged. The Hong Kong 
stock market, meanwhile, rose for 
a ninth consecutive day, hitting an 
intraday record of 14,130.07 be- 
fore closing at 23,987.80, up 57.00 
points, or 0.4 percent 

"HSBC still has some more ground to cover." said 
Kingston Lee, a fund manager at Schroder Investment 
Management (HJC) Ltd. The bank trades at about 15 
times its estimated 1997 per-share earnings, making it 
still cheap by comparison with Hang Seng Hank Ltd. and 
other Hong Kong banks, which trade at price-earnings 
ratios of 17 or more. Many analysts say HSBC’s global 
business means its P/E ratio should be closer to 20. 

For many investors, HSBC’s greatest strength lies in 
the rapidly growing regions near its home base. “If you 
look around Asia — Japan, Korea, die Philippines , 
Thailand — it's hard to find banks as sound as HSBC," 
Miss Foong at Peregrine said. “We’ve owned HSBC 
for ages, and we’ve made tons of money. We're not 
about to sell now." 

v - 


Source: To/ekuts 

[fiKnuoMfll Herald Tribane 

Very briefly: 

Kazakstan Sells 60 % of Largest Oil Firm 


ALMATY, Kazakstan — Cen- 
tral Asia Petroleum Ltd., a unit of 
the Indonesian conglomerate 
Setdco, has bought a 60 percent 
stake in Kazakstan’s largest oil 
company. Mangistaumunaigaz, 
for $4.35 billion, a senior Kazak 
official said Monday. 

Deputy Prime Minis ter Alexan- 
der Pavlov said that under the con- 
tract signed Sunday, the company 
is to invest $4.10 billion in Man- 
gistaumun aigaz and pay a 5248 
milli on bonus to the government of 
the former Soviet republic. 

“Out of those $4.10 billion to be 
invested within 20 years," Mr. 
Pavlov said, "$2 billion must be 

invested in the first five years.’ ’ The 
contract provides for penalties for 
failure to keep up with the invest- 
ment schedule, he added. 

. “We have committed billions 
of dollars of our resources to this 
project,” the head of Central Asia 
Petroleum, Hilrai Panigoro, said, 
“and in cooperating with the gov- 
ernment and employees of 
Mangistaumunaigaz, we will do 
our best to make it the most suc- 
cessful venture in this country.” 

Mr. Panigoro said Central Asia 
Petroleum planned to at least 
double Mangistaumunaigaz’s 
crude-oil production over the next 
five years. 

Mangistaumunaigaz produced 

4 million metric tans of oil last 
year. But during the Soviet era, 
annual production hit 25 million 
tons. The company’s reserves, in 
the western part of Kazakstan, are 
estimated at 200 million tons. 

The government will own 30 
percent of the remaining shares, 
Mr. Pavlov said, which it will 
eventually seD to portfolio in- 
vestors. The remaining 10 percent 
will be held by Mangistaumun- 
aigaz employees. 

Mr. Pavlov said Kazakstan 
hoped that large foreign invest- 
ments would revive the oil industry 
and help maintain its infrastruc- 
ture, reduce unemployment and 
improve workers’ skills. 

• Samsung Motors Inc. will develop compact cars this year 
with technological assistance from Nissan Motor Co. The new 
models are to be introduced on the world market in 2000. 

• Oriental Daily News, a Chinese-language newspaper in 
Hong Kong, will cut prices tins week to mark its anniversary, 
raising the prospect of a new cover-price war in the industry. 

• News Corp.’s Rupert Murdoch arrived in Tokyo to try to 
wrap up negotiations that could make Walt Disney Co., Sony 
Coi^p. and Fuji Television Network Inc. partners in his 
Japanese satellite-television venture. 

• Microsoft Corp.’s campaign to ensure that Chinese per- 
sonal-computer makers ship their products with legitimate 
copies of Microsoft software is making progress, according to 
a company executive who was in Beijing to launch a simplified 
Chinese version of Microsoft's Office 97 software package. 
•Hyundai Electronics Industries Co. has developed one- 
gigabit synchronous dynamic random-access memory chips 
that can process data more rapidly than conventional chips. 

• Nomura Securities Co. was accused in a report in the 

Mainichi Shimbun of having provided special treatment to 
corporate racketeers through more than 20 accounts until at 
least 1995. A Nomura spokesman declined to comment, citing 
a continuing investigation. (AFP. Bloomberg, Reuters) 

Thailand Lowers Growth Forecast 

Bloomberg News 

BANGKOK — The Bank of Thailand has cut its 1997 
economic growth forecast to 6 percent from 7.1 percent 
because of slumping exports, the central bank’s governor, 
Remgchai Marakanond, said Monday. 

The disclosure drove the benchmark SET stock index down 
13.25 points, to a six- and-a-half- year low of 592.18, and 
added to concern that an economic slump would squeeze 
corporate profits. Many economists said that even a 6 percent 
growth forecast was too optimistic as Thailand’s four-year 
slump in the property and financial markets continues. 

CHANGE: Knocksfor Minivan After More Than a Decade in High 

Continued from Page II 

U.S. auto market; more 
minivans were told last year 
than all Cadillacs, BMWs. 
Lincolns, Mercedeses and oth- 
er luxury cars combined. But 
almost everyone predirts that 
sales will continue to slip. 

“The market is going to be 
flat or declining,’* said Susan 

Jacobs, president of Jacobs & 
Associates, an automotive 
strategic planning company 
in Rutherford, New Jersey. 

Automakers plan to add the 
capacity to build a combined 
total of 186,000 more 
mini vans over the next six 
years, according to data from 
Autofacts Group, a division 
of Coopers & Lybrand. 

Both Honda Motor Co. and 
Toyota Motor Corp. plan to 
start selling new minivans in 
the United States this year. 
and both models should do 
well. Already this year,* both 
Ford and Chrysler have seen 
their minivan sales slide. 

“The company with the 
biggest ride is Chiysler,” said 
Maryann N. Keller, an auto 

analyst at Furman Selz, a 
New York-based investment- 
banking and brokerage firm. 

"If the segment isn’t ex- 
panding and more players 
come in, the share comes 
from someone,” said James 
P. Holden, Churysler’s exec- 
utive vice president for sales 
and marketing. "We’re going 
to defend our turf. ' ’ 


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PAGE 16 



:BAL , ‘ 


Strike in 

Central Bankers See Better Europe Growth 

„« ii4**^**L 
'r ,tJT- f* 

'4 ?T FT 

CaapBal by Oir Staff FnwaDispadia 

FRANKFURT — The main 
German construction union, IG 
Bau, said Monday it would call 
on the country’s 1.3 million 
construction workers to strike if 
employers did not agree by 
May 21 to full sick pay as part 
of a new wage agreement 

IG Ban’s wage subcommit- 
tee voted to recommend rejec- 
tion of a proposed wage agree- 
ment reached by negotiators 
last week. 

The union, Germany’s 
fourth-Largest, said that if em- 

Cunpilrd by 0w Staff From Dapatcha 

BASEL, Switzerland — Hans 
Tietmeyer, president of Germany's 
Bundesbank, said Monday thar the 
Group of 10 central hank governors 
saw improved growth in Continental 
Europe for die first quarter of 1997. 

But he said additional structural 
adjustments would be needed in 
many European countries to reduce 
unemployment and bolster investor 

High unemployment is straining 
budgets and casting doubt over 
which countries will qualify for the 
single European currency. 

The European Commission sent 
recommendations on Monday to 
nine of the 15 EU member countries 
on how to reduce their budget def- 

icits to the level required to qualify 
for economic and monetary union. 

The Netherlands, Finland, Den- 
mark, Ireland and Luxembourg 
were the only countries judged to 
have reduced their budget deficits to 
3 percent of gross domestic product 
or less in 1996. 

Finance ministers from the EU 
countries, meeting in Brussels for 
their regular monthly conference. 

tugal and Spain for reducing their 
deficits to meet the target of 3 per- 
cent this year. 

‘’I have the utmost respect for 
those countries and what they have 
achieved,” Finance Minister Theo 
Waigel of Germany said. 1 'Yet, there 
is still more consolidation needed.” 

The Belgian finance minister, 
Philippe Maystadt, said Italy had 
been told that the one-time measures 
it nsad to tiy ro get its 1997 deficit 
down to 3 percent of gross domestic 
product must be replaced by lasting 
structural measures beginning in 
1998. As part of the 1997 budget, 
Italians win pay tins year a one-time 
“tax for Europe” surcharge on their 
income taxes. 

Mr. Waigel reiterated that Ger- 
many’s 1997 budget deficit would 
be 2.9 percent of gross domestic 

In Basel, Mr. Tietmeyer, who is 
chairman of the G-10, said North 
America was leading the way for an 
improved world economic outlook. 

“There’s a relatively positive 

outlook as far as growth — low 
inflationary growth — is concerned 
in the U.S. and Canada,” Mr. Tiet- 
meyer said. “This does not mean 
any prejudgment on what monetary 
policy will do.” 

In Continental Europe, die G-10 
sees “some improvement as far as 
growth is concerned in the first 
quarter,” he said. 

Separately, Chancellor Helmut 
Kohl of Germany said Monday that 
he was sure Europe’s single currency 
would start on time in 1999 and that 
Germany’s record unemployment 
would ease by early next year. 

“The euro will come,” Mr. Kohl 
told reporters in Bonn after return- 
ing from a 10-day tour of Asia and 
the Pacific. (Reuters, Bloomberg) 


MO ^ 

=r -- 4800 


' 4900 




141 : i 

' > Jjf A ‘ M • SfiOO'o ■ j - P ■ MKjX'y F *^5? 

1996 1997 ', 1996 

1997 r 


■» ** «^** 



i •. 

? \ 

.1*1 . 

German Cable-Makers Fined for Price-Fixing 

did not reach a new agreement, 
construction workers would 
vote on a strike in early June. 

Germany's urban develop- 
ment minister, Klaus Toepfer, 
said a strike would be “poi- 
son” for the troubled sector, 
where new building orders fell 
8.7 percent in January and Feb- 
ruary. Labor Minister Norbert 
Bittern also warned of the po- 
tentially devastating con- 
sequences of a strike. 

Most of the union’s regional 
branches already rejected the 
pact over the weekend because 
it called for a cut in sick pay to 
80 percent of regular pay during 
the first three weeks of an em- 
ployee's illness. 

The agreement would make 
the construction industry the 
only sector in Germany to pay 
less than full wages in the event 
of sickness. 

(Bloomberg, Reuters) 

AFX News 

BERLIN — The Federal Cartel 
Office said Monday that it bad im- 
posed fines on electric-cable man- 
ufacturers for price-fixing, but it de- 
clined to identify the companies 

On April 28, the cartel office said 
it was investigating a unit of Siemens 
AG and the German subsidiaries of 
Alcatel Alstfaom SA of France. The 

Swiss -Swedish conglomerate ABB 
Asea Brown Boven Ltd. was also 
under investigation, it said. 

A television news channel repeat- 
ed earlier Monday that the cartel 
office had imposed fines totaling 
260 million Deutsche marks ($ 1 52.8 
million) on industrial-cable compa- 
nies including tWO UHitS of Alcatel 
Alsrhom and one of Siemens. 

“We sent out on Friday the first 

letters informing the companies af- 
fected" by the ruling, a cartel office 
spokeswoman, Elke Zeise, said. 

She said the process bad not been 
completed and that “further details 
will be released in two weeks.” 

In September, the office searched 
the premises of 10 cable manufac- 
turers and three business federa- 
tions, including units of Alcatel Al- 
sthom units as well as branch offices 

of ABB Asea Brown BoverL 
■ Alcatel Forges an Affiance 

Alcatel Telecom and SGS -Thom- 
son Microelectronics NV signed an 
agreement to manufacture and sell 
high-speed communications sys- 
tems to transmit video 'signals and 
Internet data ova conventional tele- 

Source: Telekurs 

latematkml HcraW Tribune,; 

Very briefly: 

phone lines, Reuters reported from 
New York. 

Telefonica de Espana’s Net Rose 24 % in Quarter 

Bloomberg News 

MADRID — Telefonica de Es- 
pana SA said Monday its first- 
quarter net profit rose 24 percent 
amid strong growth in its interna- 
tional operations and its domestic 
cellular service. 

But analysts >-dd die earnings had 
been hurt by of the company’s year- 
end cellular phone campaign, in 

which it gave away thousands of 
handsets. Net profit for the quarter 
came to 29.87 billion pesetas ($208.2 
million), up from 24.1 billion pesetas 
a year earlier. Revenue rose 21 per- 
cent, to 55Z2 billion pesetas. 

dons jumped 47 percent, to 108.5 
billion pesetas as die number of lines 

pesetas rose 22 percent, to 10.5 million. 

21 per- Telefonica shares rose 145 pe- 
setas, to close at 4.0S5. 

Latin American operations con- 
futed about 3.9 billion pesetas in 

tributed about 3.9 billion pesetas in 
profit, or 13 percent of total profit 
Revenue from international opera- 

■ Cableuropa ’6 5 -Year Plan 

The Spanish cable telecommu- 
nications concern Cableuropa said it 

would invest about 360 billion pe- 
setas over the next five years to 
expand its activity throughout the 
country, AFX News reported. 

The company said it would create 
about 20.000 jobs during the con- 
struction period for the cable net- 
work. adding that this figure would 
eventually decline to about 2,000 
permanent jobs. 

• The European Commission will make no response to a’ 
World Trade Organization report that coaid force the European! 
Union to lift a ban on imports of beef from cattle treated with) 
hormones until the organization makes its final ruling. ! 

• Gehe & Co.’s first-quarter sales rose 13 percent, to 6.11- 
bdlion Deutsche marks ($3.59 billion) because of its ac-* 
quisition of the British pharmacy chain Lloyds Chemists, 
PLC. It said pretax profit for the year would be 450 million DM 
to 500 million DM, compared with 407 million DM in 1996. ‘ 

• Bur da GmbH will join its on-line medical information ser-> 
vice with that of two other German publishers. Axel Springer 
Veriag AG.and Bertelsmann AG. BurdawflJ own 25 percent of, 
the venture! with the others splitting the other 75 percent 

• Badenwerk AG’s and Energie-Versorgong Schwaben! 

AG’s management boards signed an agreement combining the- 
two German utilities. ” 

• Canal Plus SA agreed that 75 percent of all the French film- 
rights it purchases For first broadcast will be bought from; 
independent producers, after a three-year transition. 

• Phar macia & Upjohn Inc. named Fred Hassan chief, 
executive, succeeding John Zabriskie. Bloomberg, afx, Reuters, 


Aessr .. 

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830 835 

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1105 1118 1100 

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292 29250 301 

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25.11 2550 

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World Index 

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Capita] goods 
Consumer goods 
Raw Materials 





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Goodman Fid 
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850 *42 *63 055 

852 *80 *40 *87 

1*17 1*03 1BX8 IB 
350 351 302 3X7 

2190 2113 2355 2111 
1443 1435 1436 1440 
1475 1440 1450 1475 
684 *25 639 682 

651 650 650 680 

I9J4 19J0 19.71 1 955 
477 430 436 437 

252 255 156 252 

157 184 186 185 

11.95 1130 1130 1153 
2445 34X5 2438 2405 
135 133 133 134 

1*25 1*13 1*18 1*14 

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333 328 330 330 

305 354 3SS 3S6 

349 339 344 339 





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5550 5*50 
212 212 
7650 7650 


Kuala Lumpur 



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PrMouC 354281 

AMBB 1275 

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1381 1389 

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26 25 2535 26 

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Union Fenoso 
Valenc Geroent 

23800 23300 
1745 1705 

5790 57JO 
7580 7530 

10350 10200 
1675 1490 

23550 23440 
4995 4660 
33850 33341 
11470 11300 
4900 4790 
2550 2485 

7000 7760 

mm 10680 

1210 1190 

30060 30000 

1745 1695 

2695 3605 

6000 5980 

1355 1350 

7290 72« 
4055 3910 

1275 1260 

1900 1900 

Hocttfenl Bfc 


Hondo Motor 






2340 2310 2340 2330 

4240 4120 4240 4260 

1520 1440 1500 1460 

4740 46X7 4710 49W 

1350 1320 1340 1350 

1150 1140 1156 1140 

1230 1200 1220 1240 

3950 3850 3950 4090 

1410 1320 1410 1330 

485 478 485 488 

621 600 619 605 

6570 6340 6S7o 6530 

528 S20 528 520 

Japan Tobacco 8310a 8190a B290a 8290a 

8AM < taun 1(1641 ate I A 

4080 3960 3960 4010 

672 642 670 650 

2220 2170 2220 2740 

1510 1470 1510 1500 

~ 509 528 523 

373 380 388 

706 703 70S 703 

1230 1180 1230 1180 

238 232 237 239 

923 90S 933 920 

593 566 590 576 

7500 7420 7500 7540 

2030 2000 2030 2010 

369 345 369 344 

503 492 502 499 

2210 3140 2180 2140 

wwwnn 3230 3160 323(1 3230 

Malm Elec ind 2190 2150 2170 2220 

MatSoBIOCWk 1340 1290 1340 1350 

— - 1410 1350 1498. 1370 

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906 887 906 904 
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975 960 975 970 

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Hyundai Eng. 
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Korea El Pwr 
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711 670 7W 684 

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7BQ0 7400 7790 7770 

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maviuno 1180 1150 1170 1210 

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PAGE 17 

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PAGE 18 

World Roundup 

Kentucky Hires Tubby Smith 

' basketball Tubby Smith was hired Monday as Ken- 
tucky's coach. He succeeded Rick Pitino, who moved to the 
Boston Celtics, and is Kentucky's first black head coach. 

The Kentucky Athletics Association’s board of directors 
unanimously approved the University of Georgia coach on 
the recommendation of CM. Newton, the Athletic Di- 
rector. Smith received a five-year contract that will re- 
portedly pay more than SI million a year. (AP) 

Losers on the Ice, Bruins Win Lottery 

ice hockey The Boston Bruins, who had the National 
Hockey League's worst record and missed the playoffs 
for the first time in 30 seasons, won the NHL draff lottery 
Sunday. The consensus top choice is Joe Thornton, a 
Canadian who bad 41 goals and 122 points in the Ontario 
Hockey League this season. The San Jose Sharks will 
pick second, followed by the Los Angeles Kings. (NYT) 

Seeds Harvested at Italian Open 

TENNIS Wayne Ferreira, a semifinalist at the Italian 
Open the past two years, made a first-round exit Monday. 
He squandered five match points and lost, 4-6, 7-5. 7-6, to 
Magnus Larsson. Mark Philippoussis, the No. 16 seed, 
lost. 6-2, 6-0. to Karim Alarm of Morocco. ( Reuters ) 

McCarron Wins BellSouth Classic 

GOLF Scott McCarron won the BellSouth Classic in 
Duluth, Georgia, by three shots. He finished with a 3- under- 
par 69 and a 72-hole total of 14-under 274. David Duval, 
who started die day tied with McCarron for die lead, played 
the final round in even par, and tied for second with Brian 
Henningerand Lee Janzen, who both closed with 68s. 

• Television contracts negotiated by the U.S. PGA 
Tour should push total prize money past $150 million by 
2002 — twice the size of this year’s purse. (AP) 

Ertfc S. LoneoThr AaaocMd IYcm 

Scott McCarron lining up a putt on the 10th green 
of the final round of the BellSouth Classic. 

Paean Plans an Olympic Games Bid 

Olympics Pusan, South Korea’s second largest city, 
will bid to hold the 2008 Summer Olympics, the mayor’s 
office announced Monday. • (AP) 

A two-month 

•‘I ^ - 


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TUESDAY MAT 13, 1997 


es S* 

Rangers Pull Off 
A Devilish Upset 

N. Y. to Face Flyers Next 

By Rachel Alexander 

Washington Post Service 

New Jersey — The New Jer- 
sey Devils had 18 more points 
than the New York Rangers in 
the regular season. They had 
home-ice advantage in the 
postseason. They had the 
younger team, toe stronger 
team. But they didn't have 

Mike Richter, and, in die end, 
that was all that mattered. 

Richter stopped 46 of 47 
shots Sunday w the Rangers’ 
2-1 overtime victory that 
clinched this second-round 
Stanley Cup series, 4-2. The 
Rangers will face Phil- 
adelphia in the Eastern Con- 
ference finals. a matchup that 
seems to favor the Flyers. 
Then again. Philadelphia 
doesn’t have Richter, either. 

Adam Graves may have 
scored the winning goal 14 
minutes and 8 seconds into 
the extra period, but the con-, 
sensus in both locker rooms 
was that Richter won the 

“He was just fabulous, 
great,’' said Jacques Lemaire, 
the Devils’ coach. “He’s a 
kid who really focuses well 
and knows what he has to do 

to play weU. But then to raise 

i this in the playoffs, he’ s 
a special man.'* 

Richter faced 182 shots in 
the series and allowed four 
goals, for a save percentage of 

. Richter didn't beat the top- 
seeded Devils by himself. All 
the Rangers’ stars played like 
stars yet still managed to play 
as a team, putting up impress- 
ive defense in each game. 
Against a Devils' team known 
for feeding off opponents’ 
mistakes, this was critical. 

“All of us have won cham- 
pionships and we all realize 

the exact same firing: that you 
can’t win without defense,’’ 
said Wayne Gretzky. “And 
our team defense has been 

Gretzky helped open the 
game for New York with a 
trademark pass to Esa 
Tikkanen on the breakaway. 
Tikkanen took the puck the 
rest of the way before letting 
loose a shot that bounced into 
the top right comer of the net 
at 7:53. The Devils evened 
the game at 12:02 of the 
second period when Brian 
Rolston scored from the right 
point on a power play. 

Neither team could score is 
the third, forcing the first 
overtime of the series. That 
was a marked difference from 
the last playoff series these 
teams played, which went 
seven games and included 
three double-overtimes. Still. 
Sunday’s contest ended much 
like the 1994 Eastern Con- 
ference finals. 

Three years ago, the 
Rangers sealed the series on a 
wraparound goal that went 
from left to right behind die 
net. On Sunday, the Rangers 
won it when Graves fought 
off New Jersey's Scott 
Stevens behind the net and 
wrapped the puck around the 

ofgST The Devils' goal- 
tender. Marlin Brodeur, who 
had made several key saves in 
this series, was unable to 
make the one that counted. 
The puck flew through his 
pads as be went for the poke 

In other playoff games. The 
Associated Press reported: 

Avalanche 4, Oflcn 3 In 
Denver. A dam Deadmarsh 
scored two goals, including 
the game-winner with 1:08 
left, as Colorado beat Edmon- 
ton to advance to the NHL’s 
final four. 

The defending Stanley Cup 
- champions •will’ meet- Detroit 

Tapie Goes 
On Trial 
Over Use of 
Club Funds* 


Eric Liudros of the Flyers putting the puck past Steve Shields, the Sabres' goalie. 

in a rematch of last season's 
bitter and bloody Western 
Conference final. 

Deadmarsh, Colorado's 
leading goal-scorer during 
die regular season, tallied 
early in the second period to 
give his team 2-0 lead. Ed- 
monton then rallied to tie. But 
after each team scored in the 
third period, Deadmarsh got a 

power-play goal, beating 

Curtis Joseplvon a-pass-from 
Valeri Kamensky-.— 

. -lAiiv a i :>yr- ■ 

Flyers 6, Sabras 3 In Buf- 
falo, Erie Lindros scored two 
goals, one on a penalty shot, 
as Philadelphia won the play- 
off series in five games. 

Dainius Zubrus also had 
two goals, the second an 
empty-netter with 12 seconds 
left John LeCIair and Shjon 
Podeia also scored, and Rod 
Brind’ Amour had three as- 
sists forPhiladelphia. 

Ron Hettalh making his 
-first -postseason - appearance 

of 1997, stopped 21 shots. 
The Flyers started Hextall in- 
stead of Garth Snow, who is 
7-2 with a 2.53 goals -against 
average in the playoffs. 

Buffalo closed to 4-3 with 
two goals from Randy 
Burridge and one by Michal 
Grosek in the second period. 
Bur six minutes into the third, 
Lindros sent a pass off the 
right boards that bounced off 
Podetn -and- past Shields to 
• give the Flyers a cushion. - • 


-■ r*J ■ 



Major League Standumos 










































Kansas City 































New York 

winoNJ^uj&i* 15 


w L f*Ct 

25 11 494 

20 15 .556 

18 16 JS39 

19 18 £14 

13 22 on 





11 % 

St Louis 


17 £41 

17 £28 

20 444 

24 JU 

25 386 



San Francbco 21 13 418 — 

GotVDdo 21 U in >4 

Los Angeles 20 14 .588 1 

Sen Diego 14 20 .41 2 7 


001 180 100-3 4 2 
001 003 30—11 15 8 
HersMjer, Mesa (7J, Wtor m, M. Jocteon 
(SI and Alomar; JuThampsorb M. Myees t9) 

and Casanova- w— Ju.Thorapxoiv 3-2. 
L-Herawser, 3-1. HRs— Oevetoxt M. 
WHams (9). Detroit Easley M, Nnwln (1). 
aorta na. 

KBBSHdly ON no 020—2 s o 

NewYdrt iff on itt-a 7 o 

Rosoda Walker (7). Montgomery (7) and 
MLSmeney; Welts. Rfwera (9) and Ghuidl 
W— Wefts. 4-1. L-Aosada 3-1. Sv— Rivero 
as. HR-New Yort, B. WlHtaras (6). 

TtaoB 0» 310 100-8 11 0 

Boston 110 000 301-8 14 1 

Santana X. Hernandez («, Gondwscn (7). 
Patterson CBL Vmberg 00. WWMond (8) and 
Mercedes; Gordon, Wosrtn (41, Gates (6), 
Lacy (8) end Hasebnaa Stanley (B). 
W— Santana, 1-0. L— Gordon, 7-5. 

Sv— WfetMand ft). HRs — Boston, Naehring 
(8). Vaughn (91- Taos, Palmer (5). 

OaUau 2n 000 300-S 7 0 

CMcogo 005 021 OOK-8 If ! 

WAdams, Wengert (5) and Go-WUants 
Ahwez, Simas ffl), RJ ten endez (9) ami 

Kreuter. w— Atwveb 2-4. 1 W. Adams. 2-4. 

Sv— RJiemomte (6).HR-QdcoBa BeOefffl. 
Seattle eio oio 021—5 9 1 

Bammara IK osi oq*- 9 n o 

CLMnfinez, Marnmfflo CSX B. WBb U) and 
WBsont Erickson, Rtndes (71. Baskle (81 and 
Webster. W— Erirtson 6-1. L— D. Martinez. 
1-3. HRs— Seattle. E. Manna (5). Sorrento 
(31/ Wlfcon 2 CT. Sofflmons Surtoff &). 
AmMh on 011 000-2 8 0 

MflwanfeM 230 on «M 12 I 

Finley, p, Harris 16) and Fabregas, Leyrttz 
OX' McDonald VK one to, Wldanm (8), 
Janes 19) and Matteny. W— McDonald 4-1 
lr-FWey, 0-3. Sv— Jones (B). 
HR— MRwauKee, GeWHOams (3). 
noraefB in on aoo—3 r o 

Mtneeseta 810 M0 100-2 8 0 
w.wnoms. Spofloric (7), Quorrtrin ft), 
Plesac W, TheHn (9) ana SanMasn AWred, 
TromWey an and SMnbach. W— W. WOBams. 
1-2. L— Airbed, 1-5. S* — Tim tin (4), 


Catarado 00) NO 000-j 4 7 

PUtaMpMa 100 OM 2Qr~3 5 0 

Thamsoa DIPOta ft) and Manwartns 
ScMBng and UeberttwL W-ScMHnn. 5J. 
L— Thomson, M. 

Atlanta 101 014 ni-« 13 2 

PtttsO wgh 0M 2M 000-2 6 • 

Smoflz, Bynt ft), Wofrtere (91 and Lopezr 
Cooke, wafctfwuse (5), Petaro (6), M. windns 
(6),U0seBe (9) ond Kendall. w-SmoK, 4-3. 
L — Cooke, 3-4. HRs— Atlanta, Bhmser (a, 
Lopez (9). 

Hoestoo 0M 030 000—3 I 1 

Ftortta 031 010 10* — 4 7 I 

WdU. Garcia (4), Lima ft) and Ausraus; 
Fernandez. Powell (7), Cook (7), Hinton ft), 
Nen ft) and Johnson, w— Won,' M. 
L— Fernandez, 4< s*— Nen ft). 

New Yort Ml 810 103—6 9 0 

SL Lofts 0U OM 000-4 9 1 

MlkM R. Reed (7), Kasiilwodo (7). Udto 
ft). Franco ft) and Hundley, CastHo (a); 
Monti Ppflcowek (71, Fosus ft), EdnifSley 
ft) and Dlfedce. w-Udle, 1-a 
L— Ertentey. G-2. 5v— Franco C10I. 

HRs — Mew York, Huskey (6), Everett (a. St. 
Locrii Ctayfon OH. 

Montreal 2M 0M Ml 3-8 10 0 

Los Angeles 100 1S1 000 0—3 V 2 

(10 lnntags):CPerez, Telford (7), L Smith 
ft], (/rttna ft), Oaal ft], M.VMdes (10) and 
Retailer, Wklger ft); Noma, Drettort ft), 
To.Wtorroa ft), CandMtl (10) and Prince. 
W— Dane l^L L— CQndtatlL >2. Sv-M. 
Valdes n).HR5— ManireaV Strange (a. Los 
Angeles. Karros ft). 

Onctaatl 000 202 «00 00-4 8 0 

SanDtoga 3M Ml OM 01—6 ■ 1 

(11 bmlngs)Mercker, Cwrosco (6), Shaw 
(6), Remflnger (TO), Brantley (11) and Oflvec 
Astmy, Bodmer ft), HoRman no) and 
FW»e*ty.W— Hoftmorvl -2X— RnnSnger. 0-2 
CMcnge 4M 000 100-5 11 1 

San Fnmdscn 205 OM 221-11 TO 0 

Foster, Caskm (a, Bortenfleld (31. 
Pottenon (A), Wendell m. Adorns (7), Rojos 
in and Senate Gardner. Poole (6). Tavarez 
m, RJtatrtgiNiz f7), Henry (7) and R. 
WHkbts. w— Gardner. 4-1. L-Fossec, 3-3. 
Sv-Hemy OX HRs— OilfflBft Saw t5). San 
FmnUsca. Snow (1), Bonds IS). 

Japanese Leagues 



































MOHUY'I usaus 

No games scheduled 





















Nippon Ham 















Monday's maul 

Assists— Chicago 17 (Pipped, Jordan, 
Harper), Attonto 11 IBtaytoCkG. 

(CUcnga leads sales 3-1) 

HaastM 23 H 27 24 13—110 
Seattle 25 38 34 21 8—106 

H: Mrdaney 9-1? (MI 26. Barkley 9-1 9 7-10 
2& Si Payton 9-22 8-8 27, SOvempf 7-14 5-6 
19. RaOwrads-Hauston 62 (Bartdey 19. 
Seattle 56 (Kemp. Cummings 9). 

Assists— Houston 24 (Olaluwon^ 9), Seattle 24 
(Payton 11). 

(Hoastoe leads series 3-1) 



NHL Playoffs 


Selbu & Nippon Ham 2 


NBA Playoffs 



Miami 24 18 17 14-73 

New Yw* >6 18 24 19—77 

M: Lena id 7-1S 3^ 22. Hardaway 6-22 2-3 
I75N.Y. Ewing 12-21 1-2 25, Houston 4-134-4 
11 Rebounds— Miami 54 (Brawn 10), New 
Yort 44 (Oauey, Ewing 11). Assists— MfcuM 
16 (Hardaway B), N. Y.15 (Starts, ward 4). 

(New Yort lends tides 2-1) 
oricaga 33 22 20 14— 89 

Attonto 19 23 11 or— n 

C Jordan 12-22 3-5 27, Ptppan B-)7 6-a2& 
A: Loettner8-25 4-6 21, SnUtti 2-13 10-11 1& 
Btaylock 7-19 D-0 16 ftebomb — CMcogo 52 

(Ptppen, Jordon B), Attoifla54 (LaettnerlS. 

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Ptd tade lpMQ 0 4 2—6 

BllMo 0 3 0—3 

Hret Period: None. Second Ported: P- 

LeCWr 5 (Cofley, Brintf Amour) Z P-Undros 
5 (Brlnif Amour, Therten) 3, P-Undros 6 
(penally shot) 4. B-GroseH 3 (Pin me, 

Bamaby) 5, B-Burrtdge 4 (Gattey Audette) 
(pp). 6. P-Zubnis 3 (DesJardins, 

Brind 1 Amour) 7, B-Buntdge 5 (Plante) (pp). 
TMrd Period: P-Padeln 3 (Undh» Therten) 
9, P-Zubnn 4 (JOcJt uCMr) (en). Start sow 
gaab P- 17-13-10— JO. B- 9-94-24. GaafiaK 
P-HextoL B-SMelds. 

(PMlodeltMa wlra Mria 4-1) 

N.Y. Rnwgars 10 0 1—2 

New Jersey 0 1 e 0—1 

First Period: New Yftrk. TlkLnnen 7 
(Gretzky. Rlclrtcr) Second Period: NJ.- 
Robton 4, (pp). Thkd Period: None. 
Overtime: Z New YaiK Gloves 2 ICrwrtnrrtl, 
Messier) Starts m goal: New Yort 5-6-14- 
6-31. NJ.- ID-20'12-5-47. GootatK New 
Yort, Rkhter. NJ^Brodew. 

(New Yort wins series 4-1) 
Edamataa O 2 1—3 

Colorado 1 l 2—4 

First Period: C-5eklc 4 (Gusarov) Socood 
Period: c-Deodmorsh 2 (Ozotlnsh) 3, E- 
MarcrnnT 4 (Murray, AMrenov) ish). 4, E-, 
Amort 3 (Kovolcnka Welgntl Third Period: 
C-Lemleiw 10 (Kamensky). 6, £■ Kovalenko 4 
(MrnnOv, Smylh) (pp). 7, Gv DeaAnarsh 3 
(Kamensky. Lemieuid (pp). Starts oa got* E- 
14-7-8-29. C- 6-7-16—29. GaaBes: E- 
Joseph, C-Roy. 

(Colorado wins series 4-1) 

Aflettco Madrid z Attrtenc Bilbao 1 
Sporting Gflon 2, Cefla V)go 1 
SevHla& Hercules a — 

Logrones 2, Reel Betts 1 
Compostela 2. RayoVhllecanol ‘ 3 --~ 

Tenerife 2, Oviedo 2 
Zaragazn 1, Espdnyal 0 
Herd Sodedad 2, Radng Santander 0 ■* 

Barcelona 1, Real Madrid 0 '-'m2 

VWadoild 4, Extremadura 0 m 

STS Np KMi Real Madrid B3 polite 
Barcelona 78: Redl Betts 72i Deporttvo Cortnd* 
72 Aflettco Madrid 63; Voflodaild S& ReoT 
Sodedad 51 AtWertc Bnbao 52; TenerHe 51; 
Valencia 4ft Radng Santander 47; Celta Vta» 
43; Zaragoza 43r Compasfrio 43; Espanyol a; 
Oviedo 42; Extremartna 40; Raya VaUecbaO' 
39: Sporting Gflocr 39; Hercules 35; SevflJa 3tt. » 

ntuu. erw ei n i a i i Anormosfs Fara-y" 
ogusta 65 points Apoflon Limassol 52; Onw- 
nlu Nlcoski 4 it AEK Lamoco 41; APO^L 
Nicosia 40; Elhnlkos Adina 37; Union of Por- 
□Kmnl 35; Salambw Famagusta 34 Anagen- 
rtsls Dhertnla 32: A POP Paphos 31; AIM Lqr- 
naoo 3ft x-Arts Umassol 7& x-Olymptakos 
Ntaoslo 27; x^APEP Kypemmda 11. 5 

Teg ms morioedx were relegated to 2 nd ark 
don and win be replaced by AE L of UmosiAJ, 
Eragonu of Paphos and Elhnlkos Assta&T 
htoold cow auAurmm* . 


»T««Hr+a»i Mexico 3 points Costa Rlcnr 7; • 
United States S: El SaWador 4 Canodo‘2: 
Jamaica 2. 



TurKmenlshm Z Vietnam 1: 2 

rrANMNam China 6 paints; 3; Turk- 
menistan 1 vtemam a. ■} 

GROUP 9 f 

STahdihcs: Kozokston 3 points; 
Pakistan 0. i 


Columbus 1 New vart-New Jersey a i 

vrutomaai Eastern conference:? 
Columbus 14 palms: O.C 1$ Tampa Bay 2; 
New England Ift ny-nj 7. Weston: Con- 
fereace: Kansas City 10 poinls; Celaradoft 
Oaffas 9; 5an Jose El: Los Angdes 3. 


BellSouth Classic 

Hnel acorae Sunday of S1.E nUor 
BottSouBi Cl eeelc. ptayod at the 7JtS 0 -yard 
(2A12 u ie ta r). par-72 TPC « Sugattonf In 
□ukrth, Coorgla: 

scort McConon. U A 
Lee Janzen. Ui. 

Bilan Harm In per. u 
David DuvaL UA 
Hoi Sutloa U.5. 

G. Norman. Australia 
NkH Prtal. Zimbabwe 
Oavfd Tomb U.S. 

Kevin Suttiertantt. UJ. 

Bruce Rets her. u 
Don Pooler. UJ5. 
jay Haas. 

Andrew Magea. uj. 

Benson and Hedges 


69- 7D-70-6B-277 

70- 71-6048— 277 
70-67-73-48 — 27B 
66-67-75-70— 27B 

69- 68-70-71 -278 
71 -71-7048—280 
64-70-7749— 2B0 

70- 71-68-71—280 

L«N8ng score. Sunday attar ths Onal 
round of C7M.OOO^ound (51.14 ndOon) 
Bonson and Hedges International at ttia par- 
72. 7 JSH-yerU Oxtontehtni (Sort due In 
Ilia mo, England: 

B. Longer. Germany 
Ian Woosnam. Walas 
Lee Westwood. Eng. 

P. Harrington (refond 
KaHeVairwta. Finland, 

Robert KortssaaSwe. 

Bab May, u.s. 

Pafril: SfaftmrC Swc. 

Fobrice Tamoixt F>. 

Eduardo Ramera. Am. 

D. Clarke, North, lit. 

70-46-71 -69—276 

70- 68-70-70—278 

71- 71-70-71-283 
69-72-71-72 -28J 
754947-73 -284 



Man Staffenberg (4). Australia, d^. jo,-- 

BtOrtman (11. Sweden 4-0 24 7-s. 


WLTIMME-Oattorwd RHP Rocky Cap- 
P | "S* f to Poehesrer. IL. Recoded RHP Bitwi 
WHUams from Paaiester. -* 

£ k,ned LHP BertoWTo 
Nasl^ AA. Pur of Lyle Mouton on 1 54fay 

dfcoWed l». Recalled LHP Lurry Thretje' 
und OF Mike Cameron from Nashville. 
^^y ELAND ~ 0o,tof,ed RHP Sartoto Colon 
ta Bullaia. AA. Added LHP Alvin Mormon la 
25-man raster. 

to Toledo! T |L ° p,1oned 0F Bubi3D Trammed 
TCX As-Recoaed RHP Jose Aibeno tram 
OUaho rna Oty, aa. Assigned RHP MSrt 
WWlesIdctoOldtawiiia City. 

roocwTO _ Recalled LHP Outs Carperiier 
■ram Syracuse. IL 


Philadelphia— T ranslerred RHP Mohr 

of wekey Henderson 
S5_ C ^ J P -i Phmfleron 1S ^°V dlsairtod Its. 

IT' BeomQ n 'rorn Los Vega*- 
^^^hrarted RHP Dario Veres from 15-day 

0F DantaPow- 

ril to Phocnu, p ci 


whmla Delphi* -nred Ed Badger and Bob 
“awo. assistant coaches. 


-Signed C Kirk Muller to J-year 

ar!^ J !?f Y ~ Rp,l,rnM c Pe »« syfcora » 
Gagilan AhL °5 reenwnt Retoo*«l G Dev* 

Tl ®17* w *- A 9 , W!d in terms wBft G wfi 
Tugnim on mumyeoreontnict, 
san jose -Fired AJ sms, aneb. 


Announced rettramcnf Of Ctoo** 

B ^‘»sebaB coach, 

Jose state— A nnounced B wffl drop 
™^^vmnosacsond tpnniegsi mauJ flMM* 
-•wns and retcBate mem cross country. 
JL A « w»EST-Named axuiene Curfc 

'*'9ihBirsBa5kett«HcotK)i. . 

■ -v - -'r‘ M 

, ;;L? 

MARSEILLE, — Bernard 
Tapie, the fallen financier 
who is serving eight months ur 
jail for fixing soccer matches, 
went on trial again Moodayvl 
accused of fraudulent finani' 
cial dealings involving Olyrnn 
pique Marseille, the soccer’ 
tipam he controlled. > •• 

Tapie, 53, a former French', 
arban affairs minister, is on^ 
of 20 people being fried oa 
charges of fraud, abuse of 
company assets and abuse oC : 
confidence. The defendants*- ■ 
will have to explain the di^ 
appearance of more than 104: 
mill T on francs (about 51 8 miU- 
lion) in club money betweep: 
1987 and 1993. tj 

All the defendants face 
maximum five-year prisop* 
sentences and fines of up to 2.JL 
milli on francs. Ti 

The examining magistrate? 
Pierre Philrppon, accused 
Tapie of being “the master, 
die originator and the organs 
izer of the system.” \' t 

Jean-Pierre Bernes, the» 
club's former administrative 
director, said in 1995 thai eadk- 
year 5 to 6 million francs was 
set aside “to buy certaiir. 
matches, approach certain- 
players, corrupt other refec-? 
ees.” The encounter between’ 
Tapie and Bernes is expected.- 
to be a high point of file trial,-' 
Tapie is serving an eighty 
month sentence for bribing 
players to throw a 1993 match- 
against Olympique Marseille^ 
Of the other accused pect* * 
pie, 17 were in court, includiqg: 
Michel Hidalgo, the former, 
French national team manr 
ager, who was Marseille’^; 
general manager and several 
other ex-Marseille executives'. 

' Defendants also included; 
Miroslav Blazevic. the Ctosl-. 
dan national coach, who -is* 
charged with being an accomr A 
pKce to a swindle oyer a gamgi 
firat never took place and^t 
transfer of Dragat^Stokovic tQ. 
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u i 

U 77 

By J.A. Adande 

Tfart/ngfon Ptm Service 

*% SEATTLE — Charles 
E&ridey was fully prepared to 
accept the blame if the Hous- 
ton Rockets Lost to die Seattle 
SoperSonics on Sunday, and 
be didn’t hesitate to take full 

credit for everything it took to 

win it — including his faith in 
an unproven rookie during 
training camp. 

- In a thrilling playoff game 
Baridey missed two free 
throws that could have all bur 
iced the game for the Rockets 
with 11 seconds remaining in 
regulation Hersey Hawkins, 
fl'Seattle guard, then tied the 
game on a three-pointer with 
24 seconds remaining. 

‘'Id overtime, Baridey had 
'*pcsn points and three re- 
brands before the real hero of 
die day, rookie Matt Malo- 


ih Houston’s 1 10-106 victory 
in Game 4. 

-•* Houston took a 3-1 lead in 
this Western Conference 
semifinal and can beat Seattle 
in a playoff sales for the first 
time in six meetings with a 
vir — "•■— ■ 

loney and Barkley fin- 
ished with 26 points each. 
Maloney, an undrafted player 
out of die University of 
Pennsylvania who spent last 
season in the Continental 
Basketball Association, made 
8 of 13 three-pointers and had 
six assists, it was his best 
game yet in an impressive 
postseason in which he has 
averaged 17 points a game, 
7.6 better thanhis regular sea- 
son average. 

‘It’s a great feeling, but to 

it is not that unbeliev- 
Malaney said. “This 
something I’ve worked for 
and I’ve worked really hard 
tin my threes. Just because I 
wasn’t highly touted in the 
media doesn’t mean I'm not a 
good player.*’ 

-Still, he's a relatively un- 
known player making 50 per- 
cent of his three-pointers in 
the playoffs and stinting im- 
games while more 
, rookies such as Al- 
len Iverson, St^Aon Marbury 
and Shareef Abdur-Rahim 
are already on vacation; ’-■■■- 
Afta - die Rodcets lost a vet- 
eran, Brent Prioe^ to injury in 
die exhibition season, said 
Rudy Tranjanovich, the Rock- 
ets coach, “We were on the 
road, on d» plane, and the 
cesching staff was 
a list of vOeran point 
andibo veterans camefbiward 
and said they liked thiskkl a n d 
be can handle the job.” 

Baridey corrected his 
coach. “It wasn’t alot erf vet- 
erans,” he said. “ I was the 
only one who said it, but 
everyone's going to take 
credit for it.” 

'•'With Baridey, Hakeem 
Olajuwon and Clyde Drcxler 
commanding so much attoh- 
'^Mdaney often finds him- 

self open when his ttefavtM 
leaves to double- team. The 
Sorties raid particular atten- 
tion to Olajuwon, who man- 
aged only 10 shots, so Olaju- 
won zespouded by passing off 
for nine assists and nearly k«h 
a triple-double with 11 points 
and 12 rebounds. 

The Sorties weren’t nearly 
as smart. Forward Shawn 
Kemp was in foul trouble all 
game and had only 11 points 
and nine rebounds before 
fouling out on a reach-in with 
5:59 left in regulation. And 
Seattle’s double-teaming 
strategy did not work, as 
Maloney showed Sunday. 

“Whim we double down, 
we’re leaving all their shoot- 
ers,” said point guard Gaiy 
Payton, who led all scorers 
with 27 points. “When they 
double-down on us, they’re 
leaving one specific person. 
They don’t leave Hawk, they 
don't leave our shooters. 
They don’t leave guys that are 
going to hurt them. That’s a 
good strategy.” 

The implication was that 
Seattle’s strategy is poor. “We 
lost a meat basketball game,” 
said George Kart, Seattle’s 
coach. “To scrutinize, rig ht 
now, tactics and situations. 
I'm not going to do that” 

It turned into a great game 
because the Sonics came back 
from an eight-point deficit in 
the last five minutes of reg- 
ulation to tie the score on a 
three-pointer by Hawkins 
with 2&3 left, that tie it again 
on Hawkins’s clutch shot 

White Sox Sweep 
As Belle Connects 

JrffHiyvei/Apiac* fan c rft gie 


Michael Jordan of the Bolls keeping the ban well away from Eldridge Recasner of the Hawks in Game 4 

Ewing Versus Mourning: Guess Who’s Hurting 

By Michael Wilbon 

Washington Post Service 

NEW YORK It’s a nice pro- 
motion, Patrick Ewing vs. Alonzo 
Mounting, one Georgetown big man 
vs. another, the Originator going 
head-to-head in the paint vs. the Next 
Generation. Except it's largely a lie; 

OJL, Ewing and Mourning share 
the same space around the basket 
sometimes. But there’s tilde in the 
wayof confrontation between die two 
former Georgetown centers because 
one rarely guards the other. 

There's only one way to really set 
this up as a duel: Patnck Ewing is 
doing a whole lot more damage to the 
Miami Heat than Alonzo Mourning is 
to the New York Knicks. 

The Knicks won, 77-73, in New 
York an Sunday to take a 2-1 lead in 
this Eastern Conference playoff series 
against Miaxni because Patrick Ewing 
landed the body shots and tibe hay- 
maker to die dun, too. 

He may be 34 and bis knees may 
ache, but there still aren’t that many 
players in the NBA who can dominate 
a grading, defense-first playoff game 
the way Ewing (fid Sunday. 

It was a game so lacking in offense 
that New Yank’s Back Williams said 
be found himself dunking eariy in die 
first quarter, “How are we going to 
score no points and win a basketball 

There were only two players who 
shot better than 50 percent: Ewing and 
Mourning. But the similarities 
steamed mere. 

Mourning, hounded and pounded 
by New York power forwards Wil- 
liams and Charles Oakley, was lim- 
ited to 38 minutes because of foul 
tremble and finished with just 14 
points and seven rebounds. 

Ewing, on the other hand, scored a 
game-high 25 points, grabbed 11 re 

bounds and secured the victory by 
stepping out to the three-point arc to 
block Tim Hardaway’s game-tying 
attempt with about four seconds left 

Not oily did Ewing block the ball, 
he also controlled it. C&ugbt it 

Ewing then let out a war cry that 
could be heard way up in the Garden ’ s 
cheap seats. “My emotions kind of 
got anold of me,” he said dheepishly. 
r T was disappointed I turned n over 
the play before and 1 had to redeem 
myself. I had to vindicate myself.” 

Mourning averaged 19 paints per 
game this season, tat a mere 13 points 
an 31 percent shooting against foe 
Knicks m four regular season games. 

“The bottom Ime,” he said, “is 1 
could have contributed a whole lot 


What happens against the Knicks 

isn’t about unforced errors from 
Mounting. It’s about what the Knicks 
do to him. Walking out of the arena 
more than an hour after the ^ame, he 
said: “All the games are physical, and 
I'm feeling it The wear and tear on 
your body. This is going to come 
down to who overcomes.” 

Therein ties Mounting’s problem. 
He’s as combative as anybody in the 
league but is only 6 feet 9, regardless 
ofwhat foe game program says. So foe 
Knicks don’t have to put Ewing on 
him; they send 6-8 Oakley and 6-10 
Williams, both with size and quick- 
ness, 1 to harass Mourning. ' iCfiamr 
sends 6-10 P J. Brown and 6-10 Isaac 
Austin to guard 7-0 Ewing. Brown and 
Austin are no Oakley and Williams. 

Afterward Johnson said: "Pat- 
rick’s always played his heart out. But 
he seems wiser to me. He’s under- 
standing what it’s going to take. 
Patrick was in a situation once upon a 
time where it was all Patrick, all 
Patrick, all Patrick. He’s still our go- 
to guy, buthe knows it's going to take 
12 to win a championship.” 

In other playoff action. The As- 
sociated Press reported: 

Bifls 8% Hawks ao Michael Jordan 
is a urmww of timing . He realizes foe 
legs grow weary quicker than they 
used to, especially when he has to play 
two days in a row. Jordan conserves 
his energy for those moments when it 
counts. Uke the fourth quarter. 

Scottie Pippen carried Chicago for 
three quarters, helping the Bulls buOd 
a 22-point lead over Atlanta in Game 
4 of foe Eastern Conference semi- 
final. Jordan assumed a supporting 
role, sneaking a rest while Pippen 
dominated foe game on his way to 26 
points, eight rebounds, four assists, 
two steals and a blocked shot. 

When Pippen and foe rest of foe 
Bulls disappeared in the final period, 
Jordan ensured the Bulls remained on 
track for their fifth championship in 
seven seasons. 

Jordan scored 10 of his 27 points in 
the fourth quarter and Chicago- held' 
off the Hawks for a 3-1 series lead. 

“Scottie was the standout, no ques- 
tion,” said Phil Jackson, foe Chicago 
coach. “Michael pitched in, espe- 
cially down foe stretch. Michael 
really picks his spots.” 

This was foe Jordan of old. He 
floated through foe air on a couple of 
shots that brought a grin to the face of 
His Aimess, as if he Y s still amazed at 
himself after all these years. 

The Bulls, who suffered their first 
home playoff loss in two years when 
the Hawks won Game 2, again re- 
semble the team that won 69 games 
this season. Trailing by as many as 24 
points in the second half, foe Hawks 
put together a 16-2 spurt that brought 
them to 83-80 in foe final minute. But 
Jordan hit two free throws and then 
closed it with a steal and dunk. 

The Associated Press 

Albert Belle is starting to 
hit And, no surprise, the 
Chicago White Sox are start- 
ing to win. 

Belle hit a grand slam and a 
double and drove in five runs 
Sunday as foe White Sox, 
who went into foe weekend 

with foe worst record in the 
American League, completed 
a four-game sweep of foe 
Oakland Athletics with an 8-5 

Belle has turned around his 
slow start, hitting .353 over 
his last 13 games. 

Lyle Mouton, Chicago's 
right fielder, broke a bone in 
ms face when he collided with 
the team-mate Dave Martinez 
while chasing George Willi- 
ams' fly ball in the fifth in- 
ning. Mouton was put on the 
disabled list while Martinez 
sustained a slight concus- 

Wilson Alvarez, the win- 
ner, tied a career high with 12 
strikeouts. He said: “You 
should see Lyle's face. It’s 
kind of bad. We’re going to 
miss him.” 

Belle hit his eighth career 
slam in the third inning. The 
A’s intentionally walked 
Thomas to load foe bases, and 
Belle hit his sixth homer of 
the season. 

Oriole* 9, i iari n gr» 5 B. J. 

Suiboff h omened, tripled, 
singled and drove in six runs 
as Baltimore and Seattle split 
a four-game series at Camden 

Roberto Alomar had three 
hits, scored three runs and 
stole two bases to help Bal- 
timore avert its first three- 
game losing streak of the sea- 

Yaitkoom 3, Royals 2 The 

Yankees received their 1996 
World Series championship 
rings in pregame ceremonies, 
then bait Kansas City for 
their 16th victory in 21 
games. * 

David Wells (4-1) pitched 
into foe ninth innin g, and 
Mariano Rivera got foe final 
two outs for his 13th save. 

Bernie W illiams had three 
hits, including a home run, for 
New York. 

B t— w 6, Angola 2 Doug 
Jones became foe 1 1th reliev- 
er to reach 250 career saves as 
Milwaukee sent Anaheim to 
its fifth straight loss. 

Jones, 39, is 8-for-8 on 
save chances while filling in 
for foe Brewers’ injured 
closer, Mike Fetters. 

Rwifloro 8, Rod Sox 8 Julio 
Santana, pitching in place of 
foe injured Roger Pavlik, 
earned his first major-league 
victory, and Texas completed 
a three-game sweep at Fen- 
way Park. Pavlik was 
scratched before foe game be- 
cause of elbow problems. 

Bhm Jays 3, Twins 2 Jacob 
Brumfield raced home from 
second on an infield groun- 
dout, giving Toronto rite lead 
for good, then threw out the 

potential lying run from left 
neld in the bottom of die ninth 

in Minneapolis. 

Hats 6, Canttwto 4 The 

New York Mets are over 300 
far foe first time in nearly 
three years. 

Getting consecutive ninth- 
inning homers by pinch-hit- 
ters off a potential Hall of 
Famer, New York beat SL 
Louis to improve to 19-18. 

Sl Louis led, 4-3, in foe 
ninth, and Dennis Edcensley 
was trying to get his eighth 
save in as many chances. 

But Carlos Baerga led off 
the ninth with a single, and 
Carl Everett connected for his 
third homer. 

Butch Huskey followed 
with his second pinch-homer 
in four days. 

Expos B, Dod gsr s 3 Doug 
Strange tied foe game with a 
two-out homer off Todd Wor- 
rell in foe ninth, and visiting 
Montreal took advantage of 
Todd Zeile’s error in foe 10th 
to avoid a three-game sweep 
and end the Dodgers’ three- 
game winning streak. 

Zeile, the Dodgers’ third 
baseman, misplayed a 
grounder by Made 
Grudzielanek, and Darrin 
Fletcher, Vladimir Guerrero 
and Henzy Rodriguez each hit 
run-scoring singles. 

Giants 11 , Cubs 8 Barry 
Bonds broke out of a l-for-16 
slump with a two-run homer 
and a double as San Francisco 
had its biggest scoring game 
of foe season. 

J.T. Snow added his first 
NL homer for the Giants, who 
moved into first place in the 
NL West 

Mar tina 8, Aatnoa 3 Alex 
Fernandez allowed three runs 
and six hits in six innings at 
Miami and hit a two-run 
double for the first runs batted 
in of his career. 

Houston outhit foe Mar- 
lins, 8-7, but stranded five in 
scaring position. 

Pudres 8, Rada 4 Archi 
Cianfrocco singled in the 
winning run in the 1 1 fo as San 
Diego won consecutive 
games for foe first time since 
April 11 and 13. 

PMMaa3,RoeidMi hi Phil- 
adelphia, Curt Schilling tied a 
career-high with 12 strikeouts 
and pitched a four-hitter to 
give foe Phillies their third 
straight victory. 

Schilling, who leads the 
majors with 68 strikeouts, did 
not walk a batter. 

Pruw 8, Pirates 2 John 
Smoltz pitched five-hit ball 
for seven innings as Atlanta 
won in Pittsburgh. 

Smoltz helped himself 
with his bat by going 2-for-3. 
with a double, single and a 

A .153 career hitter until 
this season, Smoltz is batting 
.400 (8-for-20) with a pair of 
extra-base hits. 

Tigara 11, I n d iana 3 Tony 
Clark boraered twice as De- 
troit routed Cleveland 
Sunday and sent Orel Her- 
shiser to his first loss in eight 
starts this season. 




, lb adrertae contact 

Fhe+ 33 (0)1 41 43 93 70 
or year florae* WT office 

PAGE 20 


High School Proms 

that allho ugh I was IrilJifi; 

Prefect said, “My chil- 
dren’s school costs are killing 

I was sympathetic. “I hear 
that tuition is out of sight.” 

“It’s not the turnon,” be 
said. “It's the social functions. 
My daughter is going to 
a dance every 
night this week 
and it’s break- 
ing me. She has 
to have a new 
dress for each 
dance or else 
fee other kids 
will think we’re 
on welfare. 

There's the 
short green dress for fee senior 
mom, the little purple number 
for the Landon prom, the long 
silver dress for the graduation 
party given by Eleanor Jer- 
gen’s parents, and the black 
leather pants she had to buy for 
a square dance honoring 22ggv 



‘She must be popular,” I 


‘There’s more. She told 
me that she will never go out 
again if she has to wear the 
red silk dress that she already 
wore once to the Sl Albans 
Spring Hop. I explained to her 

Romanov Jewels 
Displayed in Houston 


HOUSTON — An exhibi- 
tion of Romanov jewelry that 
nearly was shipped back to Rus- 
sia has finally opened at fee 
Houston Museum of Fine Aits. 

U.S. and Russian organ- 
isers had disagreed over con- 
trol of the exhibition, and Rus- 
sia threatened to cut short the 
U.S. tour. The dispute was 
settled partly by increasing the 
Russian share of revenues. 

myself to get her 
school, I hadn’t budgeted 
what it would cost to cele- 
brate her high school gradu- 

“Did she understand it 
from your point of view?” 

“Sort of. She said that it 
didn’t matter. She could stay 
home and not go to any of tire 
parties to bid farewell to tire 
best years of her life.” 

“It sounds as if she’s lay- 
ing a trip on you.” 


“No more than my son. 
Beany. He asked me to buy 
him a tuxedo for tire Larch- 
mont High prom because the 
only ones be could rent didn’t 
fit properly and tire girls 
would Laugh at him. I thought 
it would be a cheap invest- 
ment, but each dance he’s 
gone to has cost me a corsage 
and dinner, and since none of 
the girls' parents will let them 
go on dates without the boys 
renting a limo, we’re talking 
Donald Trump bucks for 
Benny so he can be Bed 

“You’re Lucky you only 
have two kids/ ’ I said. 

“Nobody knows how 
much pressure graduations 
can put on a family. What 
adds to the cost is when my 
daughter is invited out of 
town to someplace like 
Alabama to attend the college 
freshman ball.” 


“So yon think that your 
children understand the sac- 
rifices you are making for 
their high school celebra- 

“They do. but at tire same 
rime all my daughter wants 
for graduation- is one more 
little black dress, and all my 
son wants is a black cashmere 
cape to wear over his 

‘ King of Kowloon’: Graffiti Artist, 76, Writes On 

By Keith B. Richburg 

Washington Peat Service 

H ONG KONG — He calls him- 
self tire King, and his domain 
is this city — its lamp posts, build- 
ing walls, traffic light control 
boxes, curbs, trash containers in 
public parks, tire girders beneath 
freeway bridges. 

The King’s weapons - are his 
thick-bristled brush and a jar of 
black ink, kept in one of two plastic 
shopping bags that dangle from his 
dirty crutches. The other bag is for 
his lunch. And wife brush and ink 
be leaves his trademark; the large 
Chinese characters that have 
spread across Hong Kong's public 
surfaces for decades — as deface- 
ment or decoration, depending on 
one’s point of view. 

His full and p re f e rre d title is The 
King of Kowloon, in deference to 
his ancestors who, he claims, 
owned all the land of fee Kowloon 
Peninsula before tire British oc- 
cupiers stole it. 

The King is no kid with a can of 
spray paint. Bom T sang Tsou Choi, 
he is 76 and has been daubing Hong 
Kong's streets for more feast four 
decades. Hong Kong residents 
have grown up seeing his work, 
which amounts to little more titan 
rumblings about dead ancestors, 
proprietary cl aims to various pub- 
lic utili ties and a few profane, sexu- 
ally oriented references to the 
queen of England. 

Is it art? 

Many don’t think so, and they 
dismiss fee former employee of a 
garbage collection station as little 
more than a street-side lunatic, an 
eccentric with a paintbrush, or the 
modem, high-rise equivalent of the 
village idiot 

Wan Ching-lee, a professor of 
fine arts at Hong Kong University, 
said, “We can’t encourage this type 
of activity on tire street” A young 
man recently convicted of defacing 
a statue of Queen Victoria with red 
paint he suggested, may have been 
an ill-advised imitator of the King. 

Wan added. “I don’t see any 
artistic value.” 

Thai also seems to be the view of 
many on tire street During a recent 
outing in a working-class neigh- 
borhood of Kowloon, the King 
ended up in a shouting match with 
the curator of a Buddhist temple, 
who was not about to see it de- 

“My ancestors own this 
temple! ” the King shouted. 

“This bloody fellow writes on 
everything!” tire curator called to a 
visitor after cbaszng the King away. 
“It’s no good!” 

His easily traced wanderings 
through tire city often end in 

For decades, he has 
left his trademark in 
large Chinese 
characters on Hong 
Kong’s public surfaces. 

brushes with the law. He has been 
in and oat of every jail in Hong 
Kong, he said, but he is usually 
released quickly for being a nuis- 
ance rather than a threat. 

“It's not something we lose any 
sleep over,” said Ng Ching-kwok, 
director of operations for tire Royal 
Hong Kong Police. “Our officers 
encounter him from time to time. 
We persuade him to desist and he 
complies. We paint the walls over 
from time to time.” 

But after 40 years on the streets, 
the King may finally be winning 
some respect. A local ait critic, Lau 
Kin Wai, has been following the 
King for years and recently ar- 
ranged to exhibit his work at the 
Hong Kong Aits Center. 

Lau says fee old man’s written 
ramblings made a hidden genius, 
that his characters resemble tire 
style of those used during ancient 
dynasties in China. 

“The structure of his characters 
is coherent and well balanced,” 
Lau wrote in a release accompa- 
nying the new exhibit, ‘ ‘but never 
rigid and inflexible.” 

Lan readily defends the King as a 

local cultural icon. “A lot of people 
identify him as part of Hong 
Kong’s culture.” Lau said. “And 
also there is a collective memory. 
People remember seeing his work 
from when they were children.'’ 

So far, though. Lau is having 
little success in convincing the art 
world to take the King seriously. At 
a recent conference on calligraphy. 
Lau was allowed a few minutes to 
speak and show photographs of the 
King ’s works. Lau later was de- 
nounced roundly. “No one agreed 
with him," said Wan, who con- 
ducted the session. “Everyone 
thought it was a joke.” 

There is also some anger. Several 
calligraphers who have waited 
years for funding are upset that L au . 
with his connections, has managed 
to find a public stage for a figure 
many consider unstable at best. 

The opening of the King's ex- 
hibition revealed popular interest 
in fee iconoclastic. Tne show was 
packed with photographers, tele- 
vision crews and avant-garde 
artists eager for a look at this long- 
elusive writer of graffiti — and 
perhaps, in the process, to take a 
slap at the stuffy world of fine arts 

Cindy Au, a Hong Kong Uni- 
versity art student, was at the ■ 
ing to research a paper on the I 
and his new following. 

“We’ve been living with him for 
40 years,” she said. “To me, this is 
not art.” 

The King is circumspect about 
the commotion. He replies to ques- 
tions in monosyllabic grunts and 
laughs, and goes on to proclaim 
himself the rightful owner of any 
public property in view. But. asked 
whether be will ever regain the 
family holdings, he did have a 
reply: “I don’t think I can get the 
land back.” 

And what will be his fate after 
July, when Hong Kong reverts to 
Chinese control? WHJ he then turn 
his ire from the queen and begin 
blasting China’s president, Jiang 
Zemin, for not returning his land? 
“Maybe I won’t write so much.” 
be said, smiling wickedly. 

Jaul Mrffl IWHm WmhimfUn Hal 

Tsang Tsou Choi: Is he a cultural icon or a menace? 

Cannes’s Glitter 
Outshines Films 

H ALFWAY into fee Can- 
nes festival, no clear fa- 
vorite bas emerged for the 
Palme d'Or in a largely un- 
inspiring competition ec- 
lipsed by 50th anniversary 
celebrations - — memorable 
more for glamour and tributes 
than for outstanding movies. 
Sylvester Stallone gave a 
Rooky-style salute at the of- 
ficial birthday celebration to 
be foDowed up the Palais des 
Festivals' red carpet by 
Sigourney Weaver, Martin 
Scorsese, Charlton Heston, 
John Hurt, Lauren Bacall, 
Hugh Grant and El isabeth 
Hurley, and dozens more. In 
a moving scene, some 30 pre- 
vious Palme d’Or winners 
gathered onstage as the audi- 
ence gave them a standing 

Jain ScknlU/Tbc i 

Ingmar Bergman’s former wife, actress Lrv Ufl- 
mann, right, and their daughter, Linn, accepting 
the Palm of Palms award on behalf of the director. 


F AMOUS for his appetite. Hoag 
Kong's governor, Chris Patten, 
was given an appropriate gift on his 
53d birthday — a book of 160 recipes 
favored by the Bench impressionist 
painter Claude Monet. The volume, 
“Monet’s Table,” was compiled by 
Claire Joyes. wife of Monet’s great- 
grandson. Hong Kong’s 28th and last 
governor was given tbe recipe book 
by his staff at a birthday tea party. 
Patten, who has a home in south- 
western France, says be intends to 
retire there after the July 1 handover 
to write a book on his experiences. 


Prince Carl Philip of Sweden will 
be honored with pomp and circum- 
stance Tuesday when he celebrates his 
18 th birthday and becomes second in 
line to tbe throne. Carl Philip, a shy but 
cheery teenager, will begin the cel- 
ebrations wife his family at Drotming- 
holm Palace on the outskirts of Stock- 
holm. Tbe prince, who attends 
Lutidsberg boarding school, recently 

spent two years studying in the United 


For Bob and Dolores Hope, it's 
1933 all over again. That was when 
Dolores Reade, a Manhattan 
nightclub singer, won the heart of a 
young comedian in the audience. The 
comedian — - now her husband of 63 
years — will be in the audience for her 
return to New York in a two-week 
engagement wife Rosemary Clooney 
at the Rainbow and Stars nightclub. 


Dudley Moore's estranged wife 
has filed a $5 million lawsuit against 
the entertainer, claiming he terrorized 
her with beatings and verbal abuse 
during their five years together. 
Nicole Moore, 32, claims in fee ac- 
tion filed last week feat fee actor- 
pianist chased her around the house, 
hit her, spit in hex face, grabbed her by 
the neck, pushed her against a wall 
and once choked her. Moore, 61 , mar- 
ried his fourth wife on April 1 6, 1 994. 

He filed for divorce on June 11.1 996. 
but the action has not been finalized. 


All Jerry Seinfeld's quirky friends 
will return to the top-rated NBC com- 
edy “Seinfeld” for next season — 
though they didn't receive their ask- 
ing price of $1 million per episode. 
Julia Louis-Dreyfus. who plays 
Elaine, Michael Richards, who plays 
Kramer, and Jason Alexander, who 
plays George, will return for a ninth 
season. The network did not give de- 
tails of their contracts, but the Los 
Angeles Times and fee New York 
Daily News put the figure at $600,000 
apiece per episode. 


Cut! Film director Oliver Stone is 
breaking up his 947-acre Colorado 
ranch into six segments so he can sell 
fee property he used to rent for up to 
$22,000 a week. Stone is asking $3 
million for fee 12,400-square-foot 
Sanctuary Ranch bouse and 128 sur- 
rounding acres. The rest of the ranch's 

acreage is being sold in five parcels. 


Luciano Pavarotti, 61. returned to 
fee Royal Opera House for tbe first 
time in 18 years, singing to a sell-out 
crowd of nearly 2.200. In fee audi- 
ence, was former prime minister John 

' □ 

A film made by the Heaven’s Gate 
cult leaders 21 years ago. which sur- 
faced not long after the group’s mass 
suicide in California, may soon be 
shown on television and released on 
video. A lawyer involved in market- 
ing the film said it outlined fee genesis 
of fee philosophy that ultimately led 
to the mass suicide in March of 39 cult 
members in San Diego. “We're 
working on getting it on a network TV 
news special/ ’ said Jerry Weinstein. 
The tape is believed to be fee only 
authorized video featuring the cult's 
founders, Marshall Applewhite and 
Bonnie Lu Nettles Trousdale, ex- 
plaining their philosophy. 

do as the 172-101 I s do. 

Every country Iras its own AT&T Access Number which 
makes calling home and to other countries really easy. 
Just dial the AT&T Access Number tor the country you’re 
calling from and you’ll get fee fastest, clearest connec- 
tions home. 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 vou up to 
60V So when in Rome (or anywhere else for that 
matter), do as many business travelers do. Use AT&T. 
Please check the list below for AT&T Access Numbers. 



Steps Hi folio* for eas? cafling worldwide 

l . Just did the /CT&T itass Number for the country you 
are calling from. 

1 Dial the phone number you're calling. 

3. Dial the calling card number Usoai above your name. 


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AT&T Access Numbers 


»a*Wa»o .. 022 -303 -mi 

BeJgtan* . .... 0-880-108-10 

CZBtO RepBMICA . . . . .0042-800-101 

F«M«. . 0-880-99-0011 

Germany . .. .0130-0010 

Greta* 08-898-1311 

Iretnd . 1-808-550-080 

W . 02-1011 

MMnfc* 0800-822-9111 

Rsaia • * (Moscow) • 755-5042 

SjnlR - 900-9990-11 


S»JOBTl3fld« . 
Unite! Kingdom < 

Egypt* (Cairo)* 

Sandl AfiMi'i* 

Ghana . 
Kenya* .. 
SffsO) JUrfea 






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Can i find the AT&T Access Number for the country ynu're oUmg finm' Just n>k jnj opw-jinr fur 
AT&T Direct* Service, or visit nurWvh she 4: http^/vwwJltcoinAra»elcr 

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