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The World’s Daily Newspaper 


R London, Thursday, May 15, 1997 

No. 35,521 



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Russia Agrees to NATO Expansion 

A New Relationship * Minimizes Threat 9 to Moscow, Yeltsin Says 

i _ «* • , .... Jctauy GKiH/Agws FnuraH<«*: 

John Major, left, walking with his successor, Tony Blair, into the House of 
Lords to bear the Queen’s Speech as she opened Partiament on Wednesday. 

Blair & Co. Outline 
Bold Plans for Britain 

Focus: Schools , Health Care, Handguns 

By David Hoffman 

Wathingum Post Service 

MOSCOW — Russia and the North Atlantic Treaty 
Organization reached agreement Wednesday on the 
outline of a new political and military relationship that 
would allow the alliance to expand toward the borders 
of the former Soviet Union. 

The pact was the climax of months of diplomacy 
aimed at calming Russian apprehensions about NATO 
enlargement- It appeared to clear the way for a May 27 
signing ceremony in Paris attended by Russia and the 
16 NATO nations, to be followed by the expected 
invitations in July to the Czech Republic, Hungary and 
Poland to become NATO members. 

The agreement was announced after nightlong ne- 
gotiations here between the NATO secretary-general, 
Javier Solatia Madariaga, and Yevgeni Primakov, die 
Russian foreign minister. President Boris Yeltsin, who 

had vigorously opposed NATO expansion, said on 
national television that, in view of “historical” and 
4 ‘practical realities,'' Russia would “have to reckon” 
with the broader alliance. 

"We need to minimize the threat to Russia,” Mr. 
Yeltsin said. ‘ ‘We need to minimize it if not exclude it 
altogether. This is what we're striving toward, and this 

The pact promises to cause the most dramatic 
upheaval in the alliance’s history. Page 10. 

is what this document is aiming at, the document on 
which arduous, very arduous work has been going on 
for several months.” 

There were indications that Russia made several 
concessions and accepted the inevitability of NATO 
expansion, but the text of tiie agreement was not made 
public. The two sides announced only that they had 

made “decisive progress” on key issues, including 
military problems. The pact now goes to the NATO 
countries and to Mr. Yeltsin for final approval. 

President Yeltsin said the document was “sat- 
isfactory io us.' 1 At a final press conference with Mr. 
Solatia outside a Foreign Ministry guest house, Mr. 
Primakov said, “It is a big victory for reason, it is a big 
victory for the world community and it is a big victory 
for Russia and all governments in the world interested 
in peace and cooperation.” 

The key issue was Russia’s demand that the alliance 
not move military infrastructure or nuclear weapons into 
the newly admitted states. A Western diplomat said the 
agreement was parallel to NATO's earlier promises. 

In December, NATO declared it had “no intention, 
no plan and no reason' ’ to deploy nuclear weapons on 
the territory of the new member states, and in March 

See NATO, Page 10 

Cracking Down on Drug Traffickers 

By Warren Hoge 

New fork Tunes Service 

: LONDON — Prime Minister Tony 
Blair pledged his government to an am- 
bitious package of legislative promises 
. Wednesday to bring the changes to Bri- 
ttain that he said were owed the country 
Jafter his Labour Party’s overwhelming 
victory in the May 1 election. 

! ' The government said it would create 
higher standards for Britain’s under- 
achieving schools, ref cam the over- 
burdened National Health Service, es- 
tablish legislatures for Scotland and 
Wales, strike up a more cooperative 
relationship with Europe, impose a total 
ban on h andguns and main* punishment 
for juvenile criminals harsher and 

In making public his 26. legislative 
objectives and three '‘white paper” 
study issues for what looks to be a busy 
18 months, Mr. Blair omitted expected 
proposals for a freedom of information 


Talks Canceled 

. — The Zaire peace talks between 
; President Mobutu Sese Seko and 
Laurent Kabila, the rebel leader, 
have been called off, the United 
Nations special envoy, Mohammed 
■ Sabnoun, announced late Wedoes- 
' day. Mr. Kabila's request that the 
ship on which the talks were to have 
taken place put out to the high seas 
was rejected. 

Earlier article, Page 5. 

The Dollar 

Now Yotk Wwlnwday 0 4P.M. provtauadow 

The Dow 

. charms Wednesday O 4 P.M. previous dose 
.^£L92 836.05 "* 833.13 

Bonn May Sell 
More of Telekom 

The German government said 
'Wednesday it was considering 
; bolding an emergency sale of 
- shares m Deutsche Telekom to re- 
-duce its budget deficit in time to 
'join the single currency. Page 13. 

law for Britain, Europe’s most secretive 
society, and for a bill taking away the 
voting rights of hereditary peers, those 
members of the House of Lords who 
inherit the right to office from a parent. 
Both steps remain commitments for die 
future, said Peter Mandelson, a gov- 
ernment minister who is Mr. Blair’s 
closest associate. 

There were also no specific recom- 
mendations for bringing the political 
parties under campaign-financing limits 
and accounting fix' the first time, nor fix' 
disciplining lawmakers caught in sex and 
money scandals, a subject that has been 
mentioned by Mr. Blair in die past. 

There was a general pledge to restore 
respect for the House of Commons, and 
Mr. Blair still might bring forward a bill 
to put a cap cm large donations and bar 
all foreign contributions, which go al- 
most exclusively to die Conservative 

The outright prohibition of handguns, 
toughening what is already one of the 
most strict gun-control tows in any 
Western democracy, extends a ban en- 
acted last year to include handguns of 
22 caliber or less that people are stiD 
permitted to own as long as they are kept 
under secure conditions in gun clubs. 

Mr. Blair held a meeting Tuesday at 
No. 10 Downing Street with parents of 
some of the 16 children shot and killed 

Scottish town oif Dtmblane^m^March 
19%, the incident that gave rise to the 
public demand for gun control. 

The proposals were made public in 
the centunes-old pageantry formally 
opening Parliament whose centerpiece 
is the Queen's Speech, a state of the 
union address laying out goals that is 
composed by the government and read 
by the Queen to the House of Lords. The 
monarch had made her passage from 

See BRITAIN, Page 10 

1U Hra/Tho Anadflcd Re* 

Vn Xuan Truong, the lead defendant, listening to -the presiding judge anno once bis 
death sentence Wednesday in Hanot Captain Truong is one of 22 who were convicted. 

Vietnam Sentences 8 to Die 

CfanyriM b Our S*&Fra» Dupaeha 

HANOI — A Vietnamese court on Wednesday 
sentenced eight people to die before a firing squad 
for organizing a heroin smuggling ring, and the 
Communist authorities said the verdict demon- 
strated their determination to combat a grouting 
trafficking and addiction problem. 

A panel of judges issued the death sentences 
after a jury found ail 22 defendants guilty, bring- 
ing to an end the censored but highly publicized 
case — the largest drug trial in modem Vi- 
etnamese history. 

Hundreds of people gathered outside (he 
People's Court in the city center as the verdicts 
were read out in the case linked to an explosion 
in both international narcotics trafficking and 
domestic use of hard drugs. 

In addition to the death sentences, eight 
people were given life terms in prison and six 
others received terms ranging from a suspended 
sentence to 20 years in jail — all for involvement 
in a trafficking ring that is said to have flooded 
Vietnam with hundreds of kilograms of heroin. 

A Foreign Ministry official said that the rapid 
investigation, early trial and “harsh punishment 
had shown the Vietnamese government’s de- 
termination not to co m promise in the fight 
against drugs.” 

Half of those convicted were members of the 
powerful security establishment Twq police 
captains, including the lead defendant, Vu Xuan 
Truong, were among those sentenced to death. 

See VIETNAM, Page 5 

Meet the Upbeat 
In Hong Kong 

For the Colony's Young Masters, 
Handover Is Just a Big Merger 

By Sandra Sugawara 

Washington Post Service 

HONG KONG — It's Friday evening on Hong Kong’s Lan 
Kwai Fong Street, and the bars are teeming with expatriates 
drawn to this British colony by its English language, Chinese 
soul and unruly capitalistic ways. 

Hordes of twenty- and thirty something investment 
bankers, dressed variously in jeans and designer suits, down 
beers and unwind after a week spent pursuing Hong Kong's 
beloved pastimes of making deals and money. 

OnJuly 1, Britain will hand Hong Kong back to China, and 
these young high rollers- will find out whether they and Hong 

Joseph Yam, the head of Hong Kong's central bank, 
says he can and will stand np to Beijing. Page 17. 

Kong can still thrive under Beijing's rule. 

In other quarters of this city, teachers, journalists and taxi 
drivers have expressed fears about a loss of civil liberties. But 
in die bar one recent evening, there seemed to be little fear of 
the handover, for many have fixed their gaze on a different 
aspect of the change: the merging of Hong Kong's efficient 
capital-raising machines with one of the fastest-growing, and 
potentially largest, markets in the world. 

China needs to build roads, ports and industries, to privat- 
ize companies and develop oil, gas and minerals — and it 
needs Hong Kong to help. Already, financial markets here 
have funneled billions of dollars into China's development, 
and bringing the two governments under one roof should only 
accelerate the process, many here believe. 

Right now. the biggest bets are that the tighter links with 
China will make Hong Kong an even more profitable place for 
the financial world. 

“I think it wQl be great for investment banking here,” a 
Chinese- Amen can investment banker said, yelling over the 
pounding music at Dillingers pub. Others note the rapid rise of 
small private businesses in China and efforts toward de- 
regulation there, insisting that China hardly fits the stria 
definition of a Communist economy anymore. 

A few days earlier, in an interview in Merrill Lynch & Co.’s 

See HONG KONG, Page 10 

She Deigned to Feel at Home 

Relaxed Parenting in N-Y. Brings Swift Retribution 


Beany Load of French Academia 

TMEAlfEMGAS ' . "«•* 

.New Donors for Republicans 

‘Books Page 1L 

' Crossword ... 

Page 11. 

By Blaine Harden 

Washington Post Service 

NEW YORK — In this city. where no one 
leaves anything on the sidewalk for fear it will 
get stolen, the relaxed parenting habits of 
Denmark are apparently unacceptable. 

A Danish actress named Annette Sorensen 
found out just how unacceptable Saturday 
night when ‘ she parked her 14-mo nth-old 
daughter, Liv, in a stroller outside the Dallas 
BBQ Restaurant an the Lower East Side and 
went inside to have a margarita with the 
child’s father, an American from Brooklyn. 

Such behavior toward, a child while parents 
dine may be standard practice in Copenhagen, 
but it upset a New Yorker, who called the 
police. The police arrested the child’s parents, 
kept them in jail for two nights and placed the 
daughter in the care of foster parents. 

The trans-Atlantic episode did not exactly 
play well in Denmark. Reporters there found 
mothers ai cates wondering, in effect, if there 
wasn’t something rotten in New York. And the 

Danish tabloid B.Y. blared on its front-page an 
Wednesday: "Dane in a grotesque night- 

mare in New Yorki Police stole my baby.” 

A family court judge ordered Tuesday that 
the toddler be released to her mother Wed- 
nesday afternoon. The city's Administration 
for Children’s Service will continue to mon- 
itor the child's safety until the parents appear 
in court May 21 on charges of endangeringthe 
welfare of a child, a spokesman fa the Office 
of Court Administration said 
“Please give me my baby! ’ ’ Miss Sorensen 
s ho » ted in a Manhattan cou r tro o m as she and 
the child's father, Exavier Wandlaw, were 
arraigned Monday. “I didn ’t think twice about 
it. We do this in Denmark all the time.” 

Miss Sorensen had positioned the baby 
stroller just outside a plate-glass window of 
the restaurant in a chamed-off area of outdoor 
tables and chairs. She and Mr. Wardlaw sat 
indoors a few feet from die child said David 
Kirsch. an attorney for Mr. Wardlaw. 

Maggie Lear, a spokeswoman for file Ad- 
ministration for Children's Services, said pat- 
rons at the restaurant had noticed that the child 
was crying and that on a cold evening she had 

See PARENTS, Page 5 

- 'X -A- ->V. 

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Dob IfeliQflba AjMtcMed PTgm 

The police didn’t like it that Liv Sorensen waited outside 
while her parents had a drink in a New York restaurant 

The IHT on-line http://vAVw.lht.comj 

- ttewsstand Prices 

Bahrain 1.000 Din Malta — ----- 

Cyprus .C. £1.00 ffigeria -125,00 Naira 

Denmark 14.00 DKr. Oman — 

Finland —. 12.00 FJt Qatar lOOO Rate 

Gibraltar .£0.85 Rep. 

Great Biflain -. JE 0 JO SaudlArato .10.0C IR 
Egypt SESJS0 S. Atnca ~m2 + VAT 

S 1.250 JD UA£. 1O00 p* 

Kenya~ K.SK 160 OS. Mi. CBirO-J'-JJ 

kuST. 7oo fis zintaa^-anjaaoo 

Testing the Welfare System: EU Finds Poverty at 17% 

By Tom Bueride 

Jn ff^ uti otud Herald Tribune 

BRUSSELS — The first pan-European study of 
income distribution has found a surprisingly high level 
of poverty, with one European in six livmg m a poor 
household the statistical agency Eurostat reported 

The study found that 57 million Europeans, or 17 
percent of the population, lived in poverty in 1993, the 
latest year for which data were available. 

Although definitions of poverty vary significantly, 
that rate exceeded the 13.8 percent of the U.S. pop- 
ulation, or 36.4 million people, deemed to beUying 
below the American poverty line in 1995, according to 
the most recent report by the U-S. Census Bureau. 

Hie European study also found significant income 
disparities, with the top 20 percent of the population 
enjoying an income nearly seven times as great as the 
bottom 20 percent. A recent UN report found that the 
AmeriftfinBhad nine times the mcqnii* 

ofthe bottom 20 percent. 

Officials at the European Commissi on, th e ex- 
ecutive agency of the European Union, termed the 
figures alarming. Fadraig Flynn, the commissiaaerfor 
employment and social affairs, said the study re- 
inforced the case for new provisions to combat poverty 
and social exclusion when EU leaders meet in Am^ 
sterdam next month to discuss revisions to the Union’s 
governing treaties. 

“The statistics underline the importance for to- 
morrow’s Europe to be able to reach out to weaker and. 

more vulnerable people in the Union,” Mr. Flynn 

The findings provided grist for Europe’s debate 
about social welfare systems. Those generous sys- 
tems, which demand generous contributions from 
employers and workers, have been widely criticized as 
a cause of Europe’s higher levels of unemployment, 
and benefit levels have been trimmed by governments 
striving to qualify for a single European currency. But 
the study indicated that welfare systems do indeed 
reduce poverty and inequality, just as they were de- 
signed to do. 

Poverty rates were lowest in die countries with the 
most extensive welfare systems, led by Denmark, 

See POVERTY, Page 10 

Summit Talks 
Produce a 
Mike- Up Call 

By John F. Burns 

New York Times Service 

MALE, Maldives — A summit meet- 
ing of the seven nations that share the 
Indian subcontinent and the ocean 
around it ended here Wednesday with 
what their leaders acknowledged was a 
wake-up call to themselves and the 12 
billion people they represent 

They conceded that their failure to 
curb tbe hostilities that have set the 

the last SO years haJ^cost all of their 
countries dearly in terms of lost trade 
and, as a result, lost opportunities for 
their populatiom. 

As he brought down the gavel on the 
three-day meeting, thepresident of Mal- 
dives quietly alluded to the fact that all 
trade between the seven countries — 
India. Pakistan, Bangladesh, Nepal, 
Bhutan, Sri Lanka and Maldives — ■ 
accounts for barely 1 percent of total 
world trade. 

Unmentioiied by Maumoon Abdul 
Gayoorn, the Maldivian president, was 
that this trade has been achieved by 
populations that account together for 
nearly 20 percent of all manHnd 

While much else has contributed to 
keeping the region mired in a degree of 
poverty that is unmatched anywhere but 
Africa, most if not all of the leaders 
represented in Male seemed ready to 
concede — and in a public manner that 
has been far from common in tt y* region 

— that they, or at least the political class 
they represent, has much to answer for in 
having failed to curb the hostilities that 

See SUMMIT, Page 10 



France’s School Grind / Booked-Up Children 

Weight of Academia Leaves a Nation’s Pupils Buckling 

Labor Party 
Pushes Peres 
To Sidelines 

P ARIS — All French schoolchildren 
carry the burden of this country's ex- 
acting academic traditions: rigorous 
study of the classic disciplines, long 
school days in austere surroundings, hours of 
homework at night But no burden is so heavy, 
no weight so dead, as the one they carry on (hear 

Every scbool-day morning and evening, die 
streets of Paris are filled with children and 
teenagers staggering under the weight of big, 
hard-sided backpacks, groaning with textbooks, 
notebooks and myriad other necessities of 
school life. 

Not even the youngest are spared the ob- 
ligation of ferrying many kilograms of know- 
ledge back and forth across die city. This often 
leads to the sight of parents listing to one side 
with a nine-kilogram (20-pound) backpack 
slung over a shoulder, struggling to keep up with 
the unburdened child. 

“Friday is the worst,'’ lamented Vale re Duval 
de la Guierce, 12 and a sixth-grader in suburban 
Boulogne. That is the day be is required to cany 
five books, (me big ring hinder, seven notebooks, 
his pen-and-pencil case, his calculator and a 

Thursday nights, be can spend as many as 
three hours doing homework sifter dinner, on top 
of two study periods during his 8-30-to-6:15 
school day. When he comes home Fridays, be 
said, he is so exhausted he flings his backpack on 
the floor and throws hims elf on die couch to 

But, he added: “I’ve never complained. Our 
professors talk about it, and they've been talking 
to the minister of education." Vakre is correct. 
In France, the long-suffering children and con- 
science-stricken parents have begun to shake die 
official education establishment with their con- 

By Charles Trueheart 

Washington Paa Service 

high school, is one of thousands of french 
students who has had to see a doctor about a 
developing case of scoliosis, or curvature of 
die spine, brought on at least in part by 
canying up to 14 kilograms of scholarly 
weight <m his back every day. 

“My spine turned out to be abit curved," 
be said. 

Most French city schools are not 
equipped with lockers, and students feel 
lucky to have the use of small, unlockable 
cubbyholes. Bat that is no help in die daily 
commuting, most of it on buses and subways 
or by foot or bicycle. Every course requires 
homework, and every course seems to nave 
its own texts, readers and workbooks. 

The most afflicted group, the legislative 
report said is sixth-graders, who carry mare 
than a quarter of their average body weight 
— a burden whose adnlt equivalent would 
be over 18 kilograms. For a 30-kilogram 
third-grader* a 7-kilogram backpack is 

By Joel Greenberg 

New York Times Service 

JERUSALEM — Israel's opposition 
Labor Party has shut the door on the 
continued leadership of Shimon Peres_ 
by voting down a prop o sa l to create for 
him the post of party president. This se^ 
the stage for election of a new party, 
leader next month. 

Mr. Peres vowed to remain in fesjj 
public eye and to keep working forj 
peace with Israel’s Arab neighbors. 

A party convention in Tel Aviv voted, 
decisively to put off a debate on Mr/f 

Peres’s appointment to a proposed po$f 
of president until September, well after 
a new party leadership is due to be 
chosen June 3. Mr. Peres had already 

M R. HABY’S report diffuses the 
blame for the crisis: Parents do 
not exercise enough supervi- 
sion or judgment over what 
goes into the backpack. School adminis- 
trators do not coordinate the aggregate 
amount of homework the students nave to ~ 
complete every night Teachers do not / 
weigh die effects of their assignments. Even 
textbook publishers insist on using heavy __ 
covers on their books. 

Mr. Bayrou, the education minister, expressed 
preliminary approval of recommendations to 
brake the trend toward turning this country’s 
future generations into misshapen and exhausted 
beasts of burden. 

The report only alludes to the overarching 
• problem, the one that drives the homework in die 
first place: a culture of competitiveness that 
would be considered nearly Japanese in its in- 
tensity, a stress on long hours of hard work, an 
educational system that locks in early and dic- 
tates strictly what socioeconomic rank a person 
will enjoy in later life. 

In a recent published interview, Mr. Bayou 
compared french students to beta de concours , 
or animals trained for competition, and said the 
problem was “mainly created by parents, not 

He called it a “pitiless rule" that “it is vay 
difficult to be recognized in french society" if 
one has not earned a dtploma by the age of 20. Hie 

Education Minister Francois Bayrou has 1 
asked for a special legislative report on what has 
become a weighty issue of state. The author of 
the study, Jean- Yves Haby, who is a Paris -area, 
legislatin', found Hat at virtually every level 
students were carrying more, sometimes much 
more, than the recommended maximum of 10 
percent of body weight A medical study of 
1,178 students ages 5throngh 20 in Grenoble, 
southeastern Trance, found more than half suf- 
fering from problems of the vertebrae. 

Alex Noyer, 17 and in his last year at a Paris 

Not even die youngest French children are spared the obligation of ferrying 
many kilograms of knowledge bark and forth across the city. 

one has not earned a diploma by the age of 2 

said this was “true in business, in government in 

France’s current efforts to become globally 
competitive, and its na g gin g sense of bang left 
behind as economies boom across Asia, only 
reinforce that determination among the most 
motivated parents. But not all parents are com- 
fortable wife this approach. 

“It’s not fee schools — it’s the Ministry of 
Education drat sets the curriculum,” said Jac- 
queline Boutefllon, whose older daughter spent 
three years in Philadelphia schools. “The teach- 
ers have a hard time completing it" 

A FTER, feat experience, Mrs. Boater! - 
Ion said, she concluded feat “fee 1 
French system is very bad for the con- 
fidence of the kids." 

Mrs. Bouteillon added that the system 
“crushes" the children, who “get very tense.” 

“The French educational system exists to 
create elites, to filter out fee 10 percent who are 

the very best students,” she said. “They don’t 
care as much about the rest.” 

As for the symbolic problem of the backpack, 
students have developed ways to get around it — 
sharing a particularly heavy textbook (as long as 
it is not needed at home) or using a backpack on 
wheels wife a long handle, like a rolling suitcase. 
For fee younger children, dragging a wagon-load 
of textbooks may be acceptable, but in die older 
grades, it is less than cool. 

“Their parents make them do it It looks 
absolutely stopid," said Marie Bouteillon, a 
tenth -grader in Paris. 

“And it’s very impractical" in a school like 
hers, she adde(C wife “lots of stairs and no 

Stanislas Duval de la Guierce, 10, was as stoic 
as his older brother Valere. 

“The kids don’t complain." he said. “The 
reason we go to school is to work. That’s die way 
it’s been decided." 

Dutch Set to Save Kennedy Airport 

Down the Road for International Travelers: A Mall With Planes 


said dial if die debate were deferred, «£ 
would not seek the new position. 

The vote Tuesday night heralded ttw 
end of Mr. Peres's formal leadership o E 
Labor. It was a resounding victory idm 
his rival and the front-runner to succe**?. 
him as head of the patty* Ehud Barak. V 
former army chief of staff. 

Mr. Barak's proposal to defer the" 
debate on die presidency won more than' 
60 percent of fee convention delegate^! 
votes. But fierce infighting preceded fee 
vote, showing that he will nave to wort; 
to mend divisions in the party. 

Mr. Peres, who won the Nobel Peace; 
Prize for his role as foreign minister in.' 
negotiating fee Palestinian-Israeli 
cards of 1993, led fee Labor Party ijjj 
five campaigns, starting in 1977. 7’ 

Under his leadership, however, dkf 
party never won decisively. It came, 
close enough that Mr. Peres served 
prime minister while Labor shared^ 
power in the 1980s wife Likud, and he] 
returned to the prime minister’s offi<2£ 
after the a«g«sinfltinn of Yitzhak Rabin' 
in 1995. '1 

But he and Labor were turned out df, 
office last year when fee Likud leader,' 1 
Benjamin Netanyahu, narrowly won a. 
bitterly fought national election. ft 

In a long speech Tuesday night that; 
reviewed Ms career, Mr. Peres vowed fo? 
continue working for peace. “I don't® 
need any formal mandate." he said. ‘ ‘as* 
long as I have fee strength, because time, 
is burning away, and if the time wonY 
bum in our bones, we will lose our" 
opportunity, and the children will neve^ 
forgive us." . !* 

Later, Mr. Peres said he had no in-. 

Plane’s Risky Cargo 

By Neil MacFarquhar 

New York Times Service 

NEW YORK — The master panel 
displaying- incoming fli ghts. at .the In- 
ternational Arrivals budding at 
Kennedy International Airport is moun- 
ted on the back wall of the second floor, 
its position so remote feat people wait- 
ing for passengers have to mount a flight 
of stairs and slalom through a food court 
to see it 

It is a 1960s relic, made of little black 
and white letters feat flip over like an 
alarm clock of similar vintage. In the 
universe of flight information, it is like a 
DC-3: usually trustworthy, but you can- 
not always find spare parts. 

The antiquity of the master panel 
reflects bow outdated many parts of 
Kennedy have become: The airport 
ranks among fe e lowest in surveys of 
international airline passengers. 

On Tuesday, the airport s new man- 
agement team spent fee day trying to 
find a polite way to say that the Port 
Authority of New York and New Jersey 
left behind a dilapidated antique. 

“This is the United States, where 
they put people on the moon," said Jan 
Jansen, the new general manager of the 
airport. “This stuff is a shock." 

Mr. Jansen is a vice president of 
Schiphol USA, the Dutch part of a 
private Dutch-American consortium 
feat will tear down the building piece by 
piece over the. next-four years and con- 
struct a new one modeled after Am- 
sterdam’s airport. 

The Dutch own 40 percent of the 
consortium. The main American part- 
ners are LCOR. a real estate company, 
and Lehman Brothers. 

As an example of die airport's out- 
datedness, take fee way its workers 
learn what planes have arrived. A job 
long ago given to computers in the rest 
of fee developed world involves a pri- 
mordial fox at Kennedy, wife fee flight 
numbers written on a land of drum that 
transmits it to printouts elsewhere in the 


“It works," Mr. Jansen said help- 

The terminal opened in 1957, as 
America’s state-of-the-art gateway. The 
problem is that over fee decades it 
stayed mostly in the same state, though 
Port Authority officials involved in-fee 
transfer began to be offended when 
people called it a wreck. 

tf lt is by no means a wreck," said 
Barry Abramowitz, head of the redevel- 
opment of Kennedy for the Port Au- 

thority, a process expected to absorb 
more than $4 billion in the next five 

WASHINGTON (WP) — A ship- 
ment of oxygen generators similar to 
those involved in the VaJuJet crash last 
-year was inadvertently transported 1 on a 
Continental Airlines flight hnnid-April, 

fee ValuJet crash a year ago. Once the 
government focused on fee safety of 
low-fare carriers, said Charles Hunni- 
cutt. a Transportation Department of- 

tention of retiring from political life,. 
“It's not a failure that I don’t win a* 

majority, "he said. “A failure is whenh 
person doesn't struggle for what he be-^ 
lieves in. As long as lean act, I will wort 

years, “It is a hail di n g -that has- gone as- —year was inadvertently transported* on a competitive activities, 
for as it can go, it is a 40-year-old Continental Airlines flight frrmid- April , 

sguyethatcam-tbeca m e d m uchfur-.^ adcording-fe Tun Hall, chairman of fee p rpTM a, T? a ;l THci-nntwl 
_ . 7 * National Transportation Safety Board. ^ IXtlll UlbrupiCU 

r The Dutch admit stealmg fee cxwc^t ^ generators, blamed for an ex- PARIS (Reuters) — As a new strike 

tCd plosive fire on fee Valujet plane, caused by train controllers began disrupting 
no damage or injuries. Fmncb rail traffic Wednesday, the suue- 

ficiaL major carriers stepped up toeir,, for peace. I am not rraigning^ ninnjn£. 
competitive activities. ' away or going but I’m staying. 

Mr. Peres -s remarks, in which he said^ 
V«n<4, TUc !*? felt “completely toe- to promote. 

States. Kennedy win be airpoit-cum- 
shopping-malL designed to generate 
enough money to pay the Port Authority 
$12 millimi a year and as much as $60 
million a year for fee 30-year lease. 

The mall-with-airplanes idea feat 
forms fee core of fee new $ 1 .2-billion 
terminal is one feat has proved popular 
among passengers. They ranked Am- 
sterdam’s Scfaipol airport No. 4 among 
fee largest 54 included in a 1996 survey 
by fee International Air Transport As- 
sociation. No. l is Singapore, which was 
also designed by the Dutch. 

The basic idea is to move passengers 
from parking lot to check-in counter to 
airplane wife such ease feat they forget 
they are traveling and go on shopping 
binges instead. 

The plan also includes a lot of glass so 
passengers can keep an eye on their 

Small Airports Suffer 

WASHINGTON (AP) — Aviation 
officials say anti-competitive practices 
have driven up air fores and reduced 
services far some smaller airports since 

French rail traffic Wednesday, fee state- 
run railroad company, SNCF, said it was 
likely to extend to Friday afternoon. 

The Bosnia-Hungary train mil be 
restarted in September to connect Sa- 
rajevo by rail to a country outside 
former Yugoslavia for fee foist time in 
six years. (AP) 

his ideas frtom any platform, raised spec- J 
ulation feat he might pursue a political* 
path outside Labor, perhaps even within , 
Mr. Netanyahu’s government. J 

But Mr. Barak, who fought to strip* 
the proposed parly presidency of the! 
policy-making powers that Mr. Peres; 
had wanted, promised to seek bis coim- '< 
seL “We will continue to lean on Shi-| 
mon's experience, inspiration and; 
greatness on our way back to govern-! 
ment and also to peace,” he said. ; 



TOO ay Tomorrow 
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LONDON — An old Air 
France jumbo jet will be 
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name of passenger safety. 

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«*- — 

• A man was executed by 

injection in Huntsville, 
Texas, for fatally shooting a 
Houston-area bait sheqp own- 
er during a botched robbery 
13 years ago. Anthony Ray 
Wesdey, who was put to 
death ror lolling Frank Hall, 
fpajntwtnftfl his Innocence to 
the end. For his last statement, 
he turned to members of his 
victim's family, who watched 
through a window a few feet 
away. “I didn’t shoot your 
husband,” he said with a 
shaky voice. (API 

• John du Pont, the men- 

tally disturbed heir to a 
chemical fortune, received a 
.13- to 30-year sentence on 
/hesday for the murder of 
David Schultz, an Olympic 
wrestler who lived at Mr. dn 
Pont’s training center in sub- 
urban Philadelphia. Mr. chi 
Pont. 58. will receive psychi- 
atric treatment while serving 
Jiis sentence. (Nil) 

j -• Janies Earl Ray’s hunt- 
ing rifle was flown to Soiah 
Kingstown, Rhode Island, for 
jests to determine once again 
if it is the gun that lolled Mar - 
tin Luther King Jr. A Ten- 
nessee judge allowed the tests 
nr the request of defense law- 
yers for Mr. Jtay. who 
bleaded guilty to the 198Us- 
sassination bid recanted- (toys 


! aThe Queen Mary will 
'jrtay in Long Beach, Califor- 
-W The city council voted to 
’developers to tow tte 1930s- 
calmer to Tokyo Bay. The 

otywiU seek ways to finance 

$32 million in repairs- (LAi) 




Mideast Cells 
Edge Into U.S., 
jRalsing Fears 

r- By Roberto Suro 

• •• . Washington Past Service 

"WAS HING TON — Major Middle 
Eastern terrorist groups have estab- 
lished cells within the United States, and 
the last six months two U.S. ’em- 
bassies overseas have been the targets of 
bdmb plots, federal officials say. 

.Jh congressional testimony that pro- 
jected growing dangers from domestic 
add internati o nal terrorists, the director 
pf the FBI, Louis Freeh, said Tuesday 
that he had tripled the bureau’s coun- 
terterrorism efforts over the past three 
years and now has 2,600 positions ded- 
icated to this area of crime-fighting. 
_Mr. Freeh testified about the Clinton 
administration's counterterrorism ef~ 
.fiats along with Attorney General Janet 
x^no and the acting director of the CIA, 
George Tenet. 

1 “Terrorists are developing increas- 
ingly complex ways to support their 
operations,” Mr. Tenet said, noting the 
use of front companies and nongov- 
erfpmental organizations to disguise op- 
erations. ‘ ‘They have the means to move 
tfioney, material and manpower around 
t^e world.” Faced with widespread and 
diverse threats. Mr. Tenet said the CIA 
Had created a new Terrorism Warning 
Group whose mission “is to make sure 
ttiat civilian and military leaders are 
alerted to specific terrorist threats.” 

Without elaborating, Mr. Tenet said 
tHat in cooperation with the FBI and the 
State Department “we've averted 
bombs at two American embassies at 
locations overseas” in the last six 
months. A senior intelligence official 
said that Mr. Tenet was referring to 
“ serious, specific bomb threats” rather 
ti\an two individual devices. 

; Mr. Freeh noted that several Middle 
Eastern terror groups had “placed sup- 
praters inside the United States who 
could be used to support an act of ter- 
■•nSrisra here. ” Among them, he said, are 
Hamas and HezboDah. 

7’ Leaders of the Senate Appropriations 
Committee went out of their way to 
ensure that whatever funding was nec- 
essary would be provided for coun- 
terterrorism initiatives but questioned 
whether the Clinton administration had 
a coherent plan fra 1 these efforts. “What 
we need to address is how we're an- 
ticipating potential terrorist events, and 
whether or not we have adequate co- 
ordination between the various agen- 
cies,” said Senator Judd Gregg, Re- 
publican of jVe^v Hampshire. . . ■ 


Law of the Asphalt Jungle 

It’s a jungle out there in the parting 
71ots of America. 

A recent study has found that people 
leaving p arking spaces really do leave 
-.more slowly if someone is waiting for 
the spot. Honking makes things 

A study of more than 400 drivers at 
an Arian ta-area mall found that mo- 
torists defend their spots instinct- 
5 ively. 

“Lifce our ancestors, we humans 
still defend territories,” said Barry 
Ruhack, a Penn State University so- 

By Benjamin Weiser 

New York Times Service 

NEW YORK — When Gregory and 
Shannon Broome, two young lawyers, 
found the apartment of their dreams a 
few years ago in toe elegant Bee km an 
Place neighborhood on Manhattan’s 
East Side, they were ready to move in- 

But when Mr. Broome went to the red 
brick neo-Georgian cooperative build- 
ing at 425 East 51st Street to meet with 
the president of the co-op, everything 
changed. He and his wife were even- 
tually told they could not sublet the 

Mr. Broome, who is black, and his 
wife, who is white, believed that they 
were victims of racial discrimination. 
And court testimony later showed that a 
co-op board member had scribbled 
“black man” on a notepad in discus- 
sions about the couple’s application. 

Last week, a federal jury in Man- 
hattan agreed that they had been the 
victims of disc riminati on, awarding 
them $640,000 in damages — including 
$410,000 in punitive damages against 
toe Beekman H3U House and its board 
members. - ■ 

ciologisL “This, despite toe fact that 
when you’re leaving, the whole point 
is to leave. There’s nothing to be ter- 
ritorial about.” 

Mr. Rnback and an associate, 
Daniel Juieng, found that drivers took 
an average of 32.2 seconds to pull out 
of a spot after opening the car door. If 
someone was waiting, they took seven 
seconds longer. Honking delayed the 
process by four seconds. 

Men, but not women, were influ- 
enced by toe stains of the car waiting 
for the spot. was a luxury car, 
they left in 30 seconds. For an old 
station wagon, they took 9 seconds 

Short Takes 

One’s chances of dying from a bolt 
of lightning are 30 times those of dying 
from a shade attack in the United 

The verdict, which legal experts said 
may be toe largest ever fit a racial dis- 
crimination case a gainst a Manhattan 
cooperative, was noteworthy because it 
was one of the few such cases to succeed 
against a co-op, and it laid bare what 
some critics of co-op boards say is a 
common practice. 

Board members denied that race was 
a factor in their decision to reject the 

Testimony showed that one indicated 
that Ire opposed welcoming Broome to 
the bunding because he found him ‘ ‘ag- 
gressive" and “arrogant” and possibly 

But Judge Robert Carter observed at 
me point, without toe jury present, that 
the board’s characterization of Mr. 
Broome as “arrogant” at least sug- 
gested that the Broomes had made a 
case that they had been victims of dis- 
crimination, since “arrogant,” he said, 
was itself a “code name for racial dis- 

“In earlier times, when tire term was 
a little cruder, it was called uppity,” the 
judge added. “But now it is a little more 
civilized, and it’s arrogant. That's the 
woid that’s used.” ** * • 

States. Avoiding toe oceahi improves 
those chances. 

They take then- coffee seriously 
in Seattle. Coffee bare seem to be 
everywhere, and those stuck in the 
office or at home can call an Espresso 
Ambulance for an emergency deliv- 


Qne coffee maker there, Scientific 
American reports, checks the baro- 
metric pressure before brewing the 

Fanatical, yes, but then coffee has 
always aroused strong passions. Foot 
hunched years ago, according to John 
Potter, a Seattle researcher, Pope 
Clement VIH was urged to ban coffee 
because it came from the Islamic 
world. He tasted it, Mr. Potter said, 
decided it was delicious and actually 
baptized it 

International Herald Tribune 

The sensation of time 


Watchmakers Since 1908 


Pure pleasure 
on the wrist- 
rich, solid. 

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ms 1 

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link by link, 
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- VV,*;/ 

London, Great Britain 
ToL: +44171 48 39 633 

Geneva Airport 
Geneva. SwitzMlcnd 
TeL: *41 22 798 89 SB 

New Frontiers in Fund-Raising 

Republican Gala Introduces a Special Species of Political Donor 

Juni] WjhniiMyaft Rwrff Pit mb 

Newt Gingrich, left, and Charlton Heston at the Republican gala. 

Revenge of the Wronged 

N.Y. Co-Op to Pay for Denying Sublet to Black 

By Francis X. Clines 

New York Times Service 

WASHINGTON — In a lucrative 
display of the resilience of trig-money 
campaign fundraising, toe Republican 
Party raised $113 million at a black-tie 
gala that saw toe political arena's gen- 
erosity bar raised — and cleared — by a 
new class of $250,000 donors. 

The new top-doll ar contributors, des- 
ignated “co-chairmen,” will be entitled 
to various “gala benefits,” including 
access to two more special meals to hear 
the speaker of the House, Newt Gin- 
grich, and the Senate majority leader. 
Trent Lott, discuss congressional and 
election strategies. 

While the Republicans hailed the din- 
ner Tuesday as a success, street dem- 
onstrators denounced it as the latest 
evidence that both major parties were in 
the thrall of big-money donors with 
privileged access to the nation’s polit- 
ical hierarchy. 

“Our point is the fat-cat fund-raisers 
shouldn’t go unnoticed,” said Ellen 
Miller, director of Public Campaign, an 
advocate of campaign overhaul who 

helped organize toe demonstrators. 
“While toe rich and special interests 
party with lawmakers, toe people are 
left on the outside.” 

All 2,000 dinner settings were sold at 
$1,000 each, which provided a signif- 
icant piece of the evening’s $11.3 mil- 
lion gross and allowed party officials to 
describe toe gathering as a vote of con- 
fidence in Republican fund-raising 
methods. This, they said, contrasts with 
toe re-election financing excesses of the 
Democratic Party ana President Bill 
Clinton now being investigated in ad- 
vance of hearings this summer by the 
Republican-controlled Congress. 

“This is 2,000 party leaders and party 
supporters celebrating the Republican 
victories of 1996,” Mary Mead Craw- 
ford, spokeswoman for the Republican 
National Committee, said of the even- 
ing of filet mignon, salmon and speech- 
ifying. “We weren't inviting drug 
sm ugg lers and arms dealers into in- 
timate gatherings and dialing for dollars 
from federal property,” she added in an 
allusion to complaints about Mr. Clin- 
ton’s fund-raising. 

A total of four donors, the party said. 

met toe new standard either to gather a 
contribution of 3250,000 or to give it 
individually: Am way Carp.; Philip 
Morris Cos.; Julie Finley, a local party 
chairwoman and fund-raiser from toe 
District of Columbia, and Jim Rappa- 
port, a real-estaie developer and lawyer 
from Massachusetts. 

As the Republicans gathered to break 
bread, the Democratic National Com- 
mittee took to the attack. The Demo- 
crats, troubled by their own problems 
requiring toe return of millions of dollars 
in foreign donations, noted that toe Re- 
publican Party announced only last 
week that it was returning more than 
$120,000 contributed by a Hoag Kong 
company that funnaled its cash through a 
U3. subsidiary that had no assets at alL 

Fund-raising reform was not men- 
tioned in the speeches by Mr. Lott, Mr. 
Gingrich and the evening’s keynoter. 
Governor Christine Todd Whitman of 
New Jersey. Beyond the co-chairman 
designations for $250,000 donors, there 
was a sliding scale for donors, from 
$100,000 “vice chairmen” to $45,000 
“deputy chairmen,” with each group 
garnering special party entitlements. 

Why N. Y. Rent Control Survives Nixon Library May Get Tapes 

NEW YORK — What is it about New York City that has 
made toe state’s three most prominent Republican politi- 
cians — all vocal champions of free-madeet capitalism — 
turn their back on the free market when it comes to rent? 

Why are Mayor Rudolph Giutiani, Senator Alfonse 
D' Amato and Governor George Pataki loath to bring a quick 
end to a* 50-year-old rent-control scheme that legions of 
economists and urban planners agree is the principal cause 
of toe most Byzantine housing market in America? 

The answer, in a word, is votes. 

“It is my experience that whenever it is convenient for 
politicians to abandon the principles of the free market for 
some other principle that will help them- get elected, they 
will do so instantly,” said Anthony Downs, an economist 
and urban housing expert at the Brookings Institution who 
opposes rent control 

Echoing other economists who specialize in housing 
policy, Mr. Downs describes rent laws in New Yorit as “just 

Be that as it may, there are more than 2 milli on tenants 
living in rent-regulated apartments in New York City, and 
these tenants are volubly unhappy about toe prospect of 
having to give up homes they have lived in for decades if 
landlords are allowed to raise their rents to market rates. 

The majority leader of the New York State Senate, Joseph 
Bruno, wants rent control laws to expire in June. Mr. Bruno, 
a Republican, has nothing to fear from his constituents the 
issue since there is no rent control in his district, and he has 
lirtle sympathy for toe residents of New York City, most of 
whom vote Democrat (WP) 

WASHINGTON — Visitors to toe Nixon Library and 
Birthplace in Yorba Linda, California, may be able to bear 
toe notorious Oval Office recordings of former President 
Richard Nixon for themselves once a legal settlement with 
the National Archives is reached. 

But be warned: The most remarkable and unusual ma- 
terials of any former president are also the most difficult to 
decipher. The 3,700 hours of secret recordings covering 
meetings and phone calls over a two-year period are so 
marred by background noises that many conversations are 
hard to figure out. 

About half the tapes contain no conversations at alL The 
system was sound-activated, and so sensitive that virtually 
any noise turned the tape recorder on. 

The National Archives to date has made available about 
260 hours of the president's talks with top aides, having 
deleted national security secrets and family matters in 
response to litigation by Mr. Nixon, who died in 1994, and 
his heirs. To hear toe tapes, one must visit an archives 
building in suburban Maryland. But talks now under way 
could move toe tapes to toe private Nixon library as pan of 
a settlement with the president’s estate. (LAT) 

Quote /Unquote 

Samuel Berger, the national security adviser, on the 
White House's caution in approving the appointments of 
senior officials around Secretary of State Madeleine Al- 
bright: “Madeleine has the strongest team in government, 
but unfortunately they’re all off toe field.” (NYT) 

The Brand Holei. Amsterdam. June 20 

This conference, timed to follow the Amsterdam Summit, which marks the end of the Dutch Presidency 
of the EU, will debate the Euro’s potential impact on multinationals and financial markets. 

Paul Aaronson 

Executive Director, ■ 
Morgan Stanley ft Co. Infl Ltd. 

Peter Jay 

writer Bt broadcaster 

Jan Michiel Hessds 

Chief Executive Officer 
Vendex International N.V. 

Jean Frijns 

- Chi^ Executive 


Gordon Bagot 

Director, Head of Research 

Bt Consultancy 

WM Company 

Andrew Skirton 

Chief Investment Officer 
Barclays Global Investors 

Michael Gardner 


F.T5LE International 

Angelien Kemna 

Director of Equity Investment 
Robeco Group 

Piet Vddhuisen 

Head of Mutual Funds 
Generate Bank N.V 

Johan Groothaert 

Client Strategies Group 
Merrill Lynch International 

Lars Nielsen 

Professor of Finance 


Ouno Vriesmun 

Client Strategies Group 
Merrill Lynch International 

Peter Stanyer 

Performance St Risk Management 
Mercury Asset Management 
Group PLC 

Richard Pagan 

Bonds ft Equities Portfolio 

Salomon Brothers International Ltd. 

BiD Stack 

Chief Investment Officer, 
Global £guities 

Dresdner RCM Global Investors 






The iSL Netherlander 

■rag woxLgH p*h» mtwsF*PB« 

Organized Crime (kings Unleash a Power Struggle in Streets of Macau 

By Keith B. Richburg 

Washington Post Service 

MACAU — When they first heard 
the pop-pop- pop, the salesclerks at the 
Paxannie boutique on the fashionable 
Avenida da Praia Grande thought it was 
a bomb. After all, a local bank was just 
across the street, and the sound of ex- 
ploding gasoline bombs is not uncom- 
mon in this once sleepy, now violence- 
plagued Portuguese-run enclave on 
China's southern coast. 

But the commotion on May 4 was no 
bomb. When the salesclerks raced out- 
side, they saw three men slumped inside 
a white Toyota, the windows shattered by 
bullets and the interior stained by blood. 

They were the latest victims m a war 
between rival “triads." One of the vic- 
tims that rain-soaked Sunday was Sek 
Weng-cheong. who the police and local 

intelligence officials said was die right- 
hand man of Broken Tooth Koi, the 
suspected “dragon bead," or boss, of 
Macau's largest and most notorious tri- 
ad, the 14K. 

The brazen hit on such a senior 14K 
figure — taking place on one of Macau’s 
busiest commercial strips — was a di- 
rect w arning to Mr. Toi, the police said, 
that the 14K’s traditional dominance 
was being challenged by the smaller Soi 
Fong, or water Room triad. 

The triads are secret societies formed 
in China in die last century to oppose the 
harsh rule of the Manchu, who formed 
the Ching dynasty and were viewed by 
many ethnic Han Chinese as outsiders. 
The patriotic roots persisted into this 
century, when the gangs assisted in the 
war against the Japanese occupation. 

Various Chinese authorities nave rec- 
ognized the influence of the triads and 

have negotiated with them, and the 
Chinese leader Deng Xiaoping was said 
to have remarked some years ago that 
“not all triads are bad." 

But the modem-day triads are con- 
sidered by law enforcement authorities 
to be the Asian version of the Mafia, a 
huge network of organized crime gangs 
involved in everything from protection 
and extortion rackets to gunrunning and 
the drug trade. Their tentacles extend 
from China, Hong Kong and Taiwan 
into Southeast Asia and the Chinatowns 
of major American cities. 

Faced with declining revenues be- 
cause of Macau's lagging economy, 
rival triads are now engaged in what the 
police said could be a full-scale war for 
turf in this territory of about a half- 
million people and for an increased 
share of its shadowy underworld of 
smuggling, dope-dealing, prostitution 

and, above all, the profits from its lu- 
crative legal gambling industry, which 
brings in billions of dollars a year. 

“It’s not only the casinos, but all the 
profitable activities in Macau,” said 
Colonel Manuel Antonio Geraldes, a 
senior aide to the undersecretary for 
security. “They get their money from 
casinos — or from protection of the 
casinos — but also from smuggling and 
some drugs. They need to spread out, to 
make sure they have control. They are 
trying to spread their wings; that’s why 
they are fighting between themselves." 

In the 1980s and the 1990s “they 
became economically very strong,’’ the 
colonel said. “Now they see their in- 
come declining." 

Fourteen people have been killed in 
Macau so far this year, compared with 2 1 
last year. Only roe case has been solved. 
The police said they believe that the 

majority of the slayings are linked to the 

triad war and that the killMS have quickly 

slipped over the border into tl» nergh- 
bormg Chinese city of ZhuhaL Many of 
the wiimgs have been sensational, ex- 
ecution-style hits, re min iscent of gang- 
land killings in Chicago in the 1920s. 

The violence is worrying and em- 
barrassing for Macau, which has sought 
to display a rather tranquil approach to 
its planned return to Chinese sover- 
ei gnt y in 1999 as a marked contrast to 
the more vociferous transition that is 
under way next door in Hong Kong. 

This year’s victims included a Hong 
Kong gambling kingpin, Lam Pin- 
rfrang . who intellig ence officials said 
aright have, been killed as part of a 
dispute over control of VIP gambling 
rooms at casinos. 

As Macau p re pares for the return to 
Chines e rule, the bloodshed has raised 

fears that Beijing could decide to in- 
tervene early, using the security situation 0 
as a pretext for a crime crackdown. 

This month, the Macau government 
took the unusual step of issuing a state- 
ment denying press repeats in Hong Kong 
tht»T China already had dispatcheria cog? 

Man Who Set Off Blast 
Was a Suicide, China Says 


BEIJING — An explosion in a park 
near the offices of China’s leaders was 
from a homemade bomb set off by a man 
who committed suicide, the police said 

The man was from central Hunan 
Province and had set off the blast that 
killed him in Zhongshan Park in central 
Beijing on Tuesday, said Liu Wei, as- 
sistant spokesman to the Beijing city 
public security bureau. 

The man left a suicide note, Mr. Liu 
said, but declined to give details. 

No other casualties were reported in 
die explosion in die park, which is near 
the Zhongnanhai leadership compound 
and the Forbidden City, former palace 
of the emperors, and across the road 
from the Great Hall of the People, where 
China's leaders meet. 

“It looks as if it was definitely a 
suicide, and the damage was limited,' ’ a 
park official said. 

It was the third bomb explosion re- 
ported in China’s capital in two 

The police have been on high alert in 
Beijing since a bomb exploded on a bus 
during rush hour in a central shopping 
district on March 7, wounding several 
people. The blast followed by just days 
after another, smaller explosion. 

In southern Guangdong Province, the 
police said five people were killed and 
six were wounded in an explosion on a 
bus in the town of Shunde cm Monday. 

The explosion was set off by a young 
man and a young woman, both of whom 
were killed in the blast, local officials 

China’s state media has regularly re- 
ported explosions aboard buses and 
trains, most caused by accidents in- 
volving travelers illegally carrying in- 
dustrial-use explosives, which are eas- 
ily available in China. 

The police in Beijing are nervous 
about bomb attacks that could damage 
security in the city before the. an- 
niversary of the June 4, 1989, military 
crackdown on student-led anti-govem- 
menr demonstrations as well as tee July 
1 resumption of sovereignty over Hong 

City officials have said tee bombings 
in Beijing were not linked to earlier 
attacks in the restive, mainly Muslim, 
region of Xinjiang Uygur Autonomous 
Region. Nine people were killed and 74 
wounded when three bus bombings 
rocked Xinjiang's regional capital, Ur- 
umqi, on Feb. 25 in an attack teat co- 
incided with final funeral rites in 
Beijing on that day for the paramount 
leader Deng Xiaoping. 

Working With Taipei, 
Beijing Yields Hijacker 


TAIPEI — China teamed up with Taiwan on Wednesday in 
• - - ■ ■ - — ‘ — *■ — : sending back a 

Despite the absence of official ties, China allowed 15 
Taiwanese , officials and policemen into its southern port of 
Xiamen to take custody of the journalist, Liu Shang-chun, and 
remove him to tee nearby Taiwanese island of Quemqy. 

Mr. Liu was taken out of ffrina on a Taiwanese vessel, 
despite Taiwan's ban on direct sea links with China, the Straits 
Exchange Foundation said. The Taiwanese foundation handles 
exchanges with the mainland . 

He was flown from Quemoy to Taipei to be chaiged, officials 
said. Legal experts said he faced charges of violating civil 
aviation laws, endangering national security and breaching 
freedom, and could be sentenced to life imprisonment or even 

Mr. Liu doused his clothes with gasoline and threatened to 
set himself afire March 10 aboard a domestic flight of Far East 
Air Transport, a Taiwanese company, unless he was taken to 
China. He asserted that he was a victim of political repression 
in Taiwan. He was arrested moments after tee Boeing 757 
landed in Xiamen, and the airliner returned to Taiwan tee same 
day with its 149 passengers and 8 crew members. 

China at first refused to hand Mr. Liu over, accusing Taiwan 
of failing to honor an agreement to repatriate Chinese hijackers. 
The agreement in principle was reached after a series of 
hijackings in 1993 and 1994. but talks on the issue were frozen 
by China in 1995 to protest a visit to tee United States by 
President Lee Teng-hui of Taiwan. 

I Li | Since China changed its stand, Taiwanese officials said they 

| would reciprocate by returning two hijackers, the first parolees 

, it * among 16 Chinese hijackers convicted by courts in Taiwan. 
Sum K-'»c'Rciiun Officials in Taiwan said China had tentatively agreed not to 
Lin Shang-chun being led off in Shackles in Taipei, retry them, but Taiwan wants a written guarantee. (AP. AFP) 

Macau's ’Portuguese governor, Vascp 
Rocha Vieira, said he was confident the 
local police could resolve the crisis. v 
. Colonel Geraldes said that the govZ 
eminent was trying to stem the violence, 
but that tee law was “nQt adequate ..* 
Among needed initiatives, be said, wags 
a breed, U.S,-style racketeering law; a 
program to protect witnesses to triad 
crimes; easier rules to link suspects tp 
triad activities, such as forcing suspected 
gangsters to justify their wealth, and 
more way s to protect judges and lawye^ 
involved in prosecuting triad cas e s. < 




The first small contingent cf 

Q &a /General Bryan Dutton 

at British military headquarters 

last month to prepare for the 
handover cf the colony to China 
at midnight June 30. On Wed- 
nesday. the two sides agreed on a 
total advance contingent of 196 
troops. Major General Bryan 
Dutton, commander of British 
forces in Hong Kong, discussed 
military aspects of the transfer 
with Michael Richardson of the 
International Herald Tribune. 

Q. Negotiations between Bri- 
tain and C hina on the political 
transition of Hong Kong to 
Chinese rule have often been 
stormy. How is transfer of de- 
fense responsibility proceeding? 

A. It's on track. It has taken 
years of negotiation. It hasn't 
been stormy. It's been very prac- 
tical We have not always had 
agreement But we are reaching a 
successful conclusion. 

Q. How many Chinese military 
officers and soldiers will be sta- 
tioned here after the handover? 

A. The Chinese armed forces 
say that their garrison will be no 
larger than oar garrison was three 
years ago, which was nearly 
10,000. But I think at any one 
time, only half tharnumber will 
be in Hong Kong. 

Q. Won't a Chinese garrison 
of 10,000 troops, even if only 
5,000 are rotating through Hong 
Kong from neighboring southern 
China at any one time, send a 
negative signal about the degree 
of autonomy to be given to Hong 
Kong under Chinese rule? 

A. I can see that it could be 
construed that way. But actually 
this is just a demonstration of 
China’s sovereignty. It is not an 
over-large number when you look 

at it divided between the three 
forces — the army, navy and air 
force. We had similar numbers 
here. What matters far more than 
the numbers is how they behave. 

Q. Opinion polls show that 
many in Hong Kong fear tee 
presence of an army that took part 
in 1 989 in tee bloody suppression 
of tee pro-democracy movement 
in China. Is the Chinese garrison 
conscious of teat fear and doing 
anything to assuage it? 

A. I understand the Hong Kong 
people's tears. In my contact with 
the Chinese, they have been ex- 
plicit in their understanding of 
those fears and their desire to use 
Hong Kong as window on tee 
world to correct that image of 

Q. Will Chinese military per- 

sonnel in Hong Kong be subject 
to local laws? 

A. They published their gar- 
rison law in 1996 after modi 
briefing from, and consultation 
with, us and tee Hong Kong gov- 
ernment on tee way the law ap- 
plies to the British garrison. For 
Hong Kong, they have made ma- 
jor changes to tee way the law 
applies to the Chinese armed 
forces on tee mainland. 

They have acknowledged that 
a man who is off-duty and com- 
mits a civil offense will go to a 
civil court. The only area of 
lingering doubt is in what is “on- 
duty” and “off-duty,” and who 
decides on teat definition. 

Q. When will that be clarified? 

A. Once they arrive. It will then 
become a matter of practice and 
implementation. We have linger- 
ing concerns in that area. But on 
tee other hand, the Chinese have 
made major concessions in draft- 
ing tiie garrison law and have 
attempted to meet the Hong Kong 

sensitivities. We’ll have to see 
whether their attempts are ad- 
equate or not in practice. 

Q.Wm the Chinese garrison be 
answerable to Hong Kong's chief 
executive, as British forces are? 

A. No, teat is a major dif- 
ference. I am answerable to the 
chief of defense staff in London 
and to tee Hang Kong governor, 
as the commander-in-chief. The 
Chinese garrison will not be an- 
swerable to Hong Kong's chief 
executive. They will maintain 
their liaison with him but will 
only be answerable to Beijing. 

Q.Doesn’tthat cut right across 
the principle of autonomy for 
Hong Kong? 

A. The Chinese would argue 
not, in that the reason for the gar- 
rison being here is essentially two- 
fold; to defend part of China 
against external aggression and to 
demonstrate Chinese sovereignty. 

Q- Won’t there be a very strong 
temptation for officers of the 
Chinese garrison to get involved 

Bryan Dutton, garrison head. 

in military business operations in 
Hong Kong, if only to supple- 
ment the incomes of their men? 

A. What you say may be true. I 
can only reflect what I have seen 
so fan That is a desire on tee part 
of the Chinese armed forces to 
insulate the garrison from this 
commercial activity. I think they 

clean as a shining example of a 
praetorian guard. 

US. General Whms j 
Chinese on Korea ■ 

BEIJING — Norte Korea pores 
tee greatest threat to peace in Asia, J 
General John Shalikashvili, chair- 4t 
man of the U.S. Joint Chiefs of 
Staff, told Chinese Army officials 

The United States plans to main- 
tain its current force levels in the 
Asia-Pacific region for the sake of 
stability and U.S. national interests. 
General Shalikashvili said in an ad- 
dress to tee National Defense Uni- 

“To reduce our troop presence 
could destabilize the region and 
could set off a heated arms race,” 
he said. “And tints, we think tee 
whole region, including China, 
benefits from our presence.” 

Foremost among dangers to sta- 
bility was tee “unpredictable re- 
gime in Pyongyang, which poses a 
major threat to peace an the Korean 
Peninsula and in tee surrounding 
area,” the general said. (AP) 

Taiwan Replaces ^ 
Interior Minister 

TAIPEI — Taiwan's 
Nationalist Party apprtn 
est reshuffle of the cabinet Wed- 
nesday, hoping to ease public anger 
over a perceived breakdown of law 
and order. 

The six appointments were an- 
nounced by the party's secretary- 
general Wu Po-hsiung. The key job 
ofinterior minister was given to Yeh 
CWng-fong: The ministry oversees *j 
tee country's police. 

Lin Feng-cbeng, who resigned 
the post May 8, had been under fire 
over a wave of brutal unsolved 
crimes in recent months. 

The other closely watched port- 
folio, teat of government spokes- 
man, went to David Lee. a career 
diplomat who recently served as 
deputy chief of the Government 
Infoiraation Office. (Reuters) 

Hong Kong to Give 
New Rights Plan 

HONG KONG — Tung Chee- 
hwa, Hong Kong’s future leader, 
will unveil on Thursday revised 
plans to curb civil liberties and 
rights in the territory after it reverts 
to China on July 1, a spokesman 

The original proposals, an- 
nounced in April, restrict demon- 
strations and ban overseas funding 
of political parties. ( Reuters) 


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Sfk :. POD^ENOIRE, Coago _ Confu- 

«tef s S «« ' ^.whereabouts of Laurent 

*** Z^nan rebel leader, delayed 
'Dor Zai f e s P^e taiks on Wednesday, a 

senior mediator said. 

t Cr ?'^ ^^esman said by telephone 

tat Jj • Kawla, whose forces have been 

advancing on Zaire’s capital. Kinshasa. 
a<w7\ was masting cm joining the South African 

iZpt: 15 .*e venue forihe talks only 

srinjj lS rt w® 8 “* international waters, 

sesl^fi A&ica’s president. Nelson 

steZhl Mandela, who is trying to broker a tran- 

phonal agreement and avert a rebel at- 
tick on Kinshasa, and Zaire's embattled 
aS h president, Mobutu Sese Seko, waited on 

irJ*te sootc m Congo’s main port of Pointe 
^ ! Noire, where the craft was docked. 

«. fe° K ^ h a sa ' a stay-home protest 
palled by the anti-Mobutu opposition all 
Bbt closed down the city of 5 million 
-O peopte. Shops and markets stayed shut. 
p , > ! Zairian stale radio said that Wednes- 

YQf* tfay would be a feteful day that could 
™ determine the future of Africa's third 
for. \ argest country. 

^ • {_ The special envoy of the United Na- 

rea tons and the Organization of African 

Unity, Mohammed Sahnoun, announced 
the delay in the talks. 

w*; i Mr. Kabila had been expected in die 
off-J Angolan port of Soy o but had gone nor* 

™ to Cabinda eoclave, officials said. “We 

p/ere waiting for them somewhere, they 
kiafc — — — 

***£ Swiss May Freeze 

loaBjj •! 

^ Mobutu’s Assets 


^ sj GENEVA — Switzerland said 

7^. Wednesday that it was considering 

-it r es a Zairian rebel request to freeze the 

.9t> assets here of Resident Mobutu 

Sese Seko. 

7>o & The Foreign Ministry’s spokes- 

w. woman, Yasmine Charifa, said die 

‘ ^ demand had come from the interim 

: K -*5 ■ public prosecutor in the rebel-coo- 

j 1 j-. trolled city of LunmmbashL 

:/ “This request is now being ex- 

'• amined,” she said. 

} Switzerland previously said it 

would consider such a request only 
p. if It had come from the govem- 

" menL 

Miss Chatila said die request 

leached the Swiss public prosecu- 
tor’s office in Bern through “un- 
official channels*' Tuesday. 

;"fr Swiss news media estimate Mar- 

“ ^ shal Mobutu’s fortune at about $4 

billion spread among secret accounts 
^ in Switzerland. (Reuters, AP) 

lauded somewhere else,’* Mr. Sahnoun 

Marshal Mobutu agreed at a fim meet- 
ing on May 4 to band over power to an 
elected president Mr. Kabila, both then 
and in public statements since, has in- 
sisted he relinquish power at mice to Mr. 
Kabila's Alliance or Democratic Forces 
for the Liberation of Congo. 

A spokesman for Mr. Mandela. Joel 
Netshitezizhe, said on die eve of the talks 
dial mediators had: won agreement in a 
number of areas: 

“They have a skeleton of the main 
areas of agreement that are supposed, to 
be ratified,’' he said. 

Rebel radio suggested that Mr. Kab- 
ila’s forces were nearing die approaches 
to Kinshasa. The government dismissed 
such reports. Just in case, more than 
4,000 Western soldiers remained on 
standby in Congo’s capital, Brazzaville, 
or at sea off Zaire to evacuate foreign 
nationals from Kinshasa. 

Despite rebel claims that their fighters 
had infiltrated the city , the troth seemed 
closer to information provided by West- 
ern diplomats, (hat the front line was 
about 100 kilometers (60 miles) east of 
Kinshasa near die Black River bridge. 

Marshal Mobutu flew out of Kinshasa 
on his private Boeing 727 on Wednesday 
morning for the talks on die South Af- 
rican Navy vessel anchored at Pointe 
Noire. His motorcade sped past soldiers 

guarding the road to the airport but drew 
utile public attention. 

“we are waiting for Mobutu to resign 
because we have suffered for many 
years," said Juiien Boketshu. 26, an 
unemployed ccdlege - graduate living 
with his parents in the sprawling La Cite 
slums. “That’s why we don't protest. 
We are waiting for it to happen." 

Lombela Bobo, another man in La 
Cite, said Marshal MObhtu had little 
choice but to step aside. 

'‘When we -consider dtat he is a dic- 
tator, be won’t resign," Mr. Bobo said. 
“But reality says be musr resign. If he 
doesn’t resign, Kabila will come with 
guns.” . 

Everyone interviewed wanted Mar- 
shal Mobutu to go and hoped that would 
happen without a battle for Kinshasa. 

“Even if it’s this bad, we don’t want 
war in Kinshasa." said Bienvenu 
Ikongho, 19, a university student "If 
there is war here, the situation will go 
from bad to worse." . 

But there was mixed opinion on how 
he should be succeeded. Some called for 
Mr. Kabila to take over, but most feared 
a new dictatorship'uDder the rebel leader 
and sought some kind of balance that 
would prevent too much power resting 
with one man or part/. 

"Kabila has to work with every- 
body," said Sembi Loba, echoing a 
warning issued Tuesday by Prime Min- 

Eac Rdotacf/Aieax Ftaaco-Preno 

Congo's president, Pascal Lissoaba, left, speaking to Nelson Mandela on 
Wednesday after the South African president arrived in Pointe Noire. 

is ter Likulia Bolongo, that failure to 
include all parties in a new leadership 
could lead to "territorial divisions." 

While the rebels appeared poised to 
take the city, some of Marshal Mobutu’s 
elite forces, reportedly aided by former 

Angolan rebel fighters, would most 
likely put up stiff resistance. 

In addition, there are fears that Zairian 
Army soldiers would go on a rampage, 
repeating the looting and pillaging 
sprees of 1991 and 1993. 

PARENTS: Dane’s Relaxed Attitude Wins 2 Nights in Jail 

Continued from Page 1 

been “exposed" for an hour in the stroller under a 
blanket, but without a jacket "At least two patrons 
tried to involve the parents to get them to assist with the 
child and they refused," Ms. Lear said. 

A waiter at the restaurant told The Associated Press 
that Miss Sorensen deflected the worried New Yorkers 
by saying the "baby was fine." 

Mr. Wartflaw’s attorney said his client was con- 
sidering pressing charges against the police for bni- 
talizingium in the precinct station after his arrest 
Mr. Kirsch said: "My client tells me that when he 
was brought into die precinct in handcuffs one police 
officer took him into the men's room and tried to jwt his 
head into a toilet and also gave him a hard kick in the 
shin. I saw the scab on his shin.’' 

A spokesman said there was no official report of any 
altercation between Mr. Wardlaw and the police. 

Mayor Rudolph Giuliani said the police intervened 
became “patrons in the restaurant were complaining 
that the baby was left alone, that the baby was crying 
and the baby was being neglected." - 

"1 think we did the right thing," he said. "If they 
acted out of ait excess of caution, so be it.” 

There is sound reason for city government to react 
quickly to allegations of possible child abuse. This 
spring a 5-year-old died in the Bronx after being 

starved and tortured, allegedly by his mother. A 7-y ear- 
old in Harlem was badly burned a few days later, after 
her mother allegedly forced her to sit on a hot radiator. 
The incidents raised long-standing concerns about the 
city's ability to protect vulnerable children. 

Miss Sorensen spent much-ofTuesday at the Danish 
Consulate, where she tried to enlist the help of her 
government in getting custody of her child. Danish 
officials there expressed concern that the police had 
seized a Danish baby. 

Kim Christiansen, a vice consul at the consulate, 
said: "A lot of people in Denmark park their child in a 
stroller outside while they are in for a short period. 
Nobody seems to have aproblem with that in Denmark. 
It's maybe a couple of misunderstandings. Miss 
Sorensen is not aware that you could be prosecuted for 
that kind of thing." 

Mr. Christiansen said Danish officials worked with 
the prosecutor’s office and with children's services to 
by to facilitate a speedy return of the child. He said, 
however, that they had received no assurances that the 
charges against Miss Sorensen for endangering the 
welfare of a child would be dropped. 

fo Denmark, news of the arrest of the parents and the 
seizure of the baby has occasioned what Mr. Chris- 
tiansen diplomatically characterized as "surprise." 

“They think the reaction from the system here is 
maybe an overreaction/’ he said. 


8 Drug Traffickers Sentenced 

Continued from Page 1 

"I will go to hell before you,” Captain Truong told 
the police officers escorting him. "But I’ll reserve 
places there for you.* ’ 

Foreign reporters were barred from the co urtro o m at 
the start of the 10-day trial after Captain Trooug 
threatened to implicate senior Interior Ministry of- 
ficials in his testimony. 

Government censors provided journalists with lim- 
ited details of tile trial, deleting testimony and court 
commentary from official transcripts. 

The case erupted last year after the arrest and 
conviction of a Laotian drug trafficker, who broke 
down shortly before he was due tobe executed by firing 
squad and offered to exchange information about the 
syndicate in exchange for leniency. 

Under Vietnamese law, people sentenced to death 
are given a 15-day appeal period. If the appeal fails, 
their ultimate hopes ue with a presidential pardon. 

The trial may have been used to demonstrate official 
toughness, but it has also highlighted Vietnam’s grow- 
ing role as a market and transit route for drugs from the 
Golden Triangle region of Burma, Thailand and Laos. 
Drug experts say the country’s moves to open borders 
have brought a bonanza for dealers. (Reuters, AP) 

Pentagon Studies 
Report of Laser 

Pentagon said Wednesday that a 
Russian merchant ship in U.S. wa- 
ters might have illuminated a Ca- 
nadian military helicopter with a 
laser last month, causing painful 
bums to two people on beard. 

But a Pentagon spokesman. Col- 
onel Dick Bridges of the army, said 
the merchant ship, Kapitan Man, 
was searched by the U.S. Coast 
Guard at Tacoma, Washington, 
three days after the incident on April 
4. No laser device was found. 

The Canadi an pilot and a U.S. 
Navy lieutenant reported suffering 
bums to their eyes the day after the 

Colonel Bridges was responding 
to questions about a report in The 
Washington Times on Wednesday, 
which said that the ship was sus- 
pected of spying on U.S. submar- 
ines and that the helicopter was tak- 
ing pictures of Che ship. (Reuters) 

Protesters Greet 
Shell Shareholders 

LONDON — Demonstrators 
gathered outside Shell’s annual 
shareholders meeting Wednesday 
to protest the company's record oa 
human ri ghts and me environment. 

The protesters, including repre- 
sentatives of Friends of the Earth and 
of the Ogooiland region of Nigeria, 
utged the shareholders to force the 
company to improve its environ- 
mental and human rights policies. 

The Royal Dutch/Shell Group 
has been criticized for harming the 
environment and supporting the 
military government in Nigeria. 

The Anglo-Dutch company dis- 
misses the criticism, arguing that it 
has reduced emissions of green- 
house gases and is committed to 
human rights. (Reuters) 

Iraq Wants Its Jets 
To Come Home 

BAGHDAD — Iraq has asked 
the United Nations for permission 
to bring home its civilian aircraft, 
which have been left for six years in 
several foreign airports, the INA 
press agency reported Wednesday. 

Iraq divided its civilian fleet 
among Iran. Jordan, Libya, Maur- 
itania and Tunisia in January 1991, 
days before the beginning of the 
Gulf War. (AFP) 

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Co’nmunicai iij! is networks for the world 


Under Boycott Threat^ 
Tirana Delays on Vote* 

CtxapSed by Our Stuff Fnm Dufxacfta 

TIRANA — President Sali 
Berisha of Albania postponed 
on Wednesday the signing of 
a law that would rail new 
elections for June 29, which 
most opposition parties had 
threatened to boycott the 
president's office said. 

Mr. Berisha said earlier in 
the day that he would dissolve 
Parliament on Wednesday 
and sign tire decree to call the 
elections, which are seen as 
vital to preventing Albania 
from sliding back into violent 
unrest after riots in February 
and March. 

The president told a poorly 
attended rally in Kavaja, a 
town he once represented in 
Parliament that the voting 
would go ahead under rules 

the Socialists, reiterated then- 
threat to boycott the vote if Mr. 
Berisha signed the law. passed 
Tuesday by Parliament, where 
the Democrats have an over- 
whelming majority. 

“If he decrees the law,” 
said Skender Gjinushi of the 
opposition Social Democrats, 

“there will be only one coq^, 
stituency in Albania, and on^ R 
one victor." oj 

In Vienna, the Organize 
tion for Security and Cooper- 
ation in Europe said a seniq^. 
envoy, Franz Vranitzk&i' 
would visit Tirana ; opq 
Thursday to tiy to mediate, 
between two prindpa^ 
parties. ^ 

Last week, Mr. Vranitzkj^. 
helped mediate what ap-W 
peared to be a compromise oflq 
election rules acceptable tg^i 
both sides. 

But the Parliament instead^, 
approved a version deemed] 
unacceptable by -die Social- 
ists and the other opposition 
parties. : .ij 

■ Talks on Stabilization' 0 ' 

..... . . Mfl 

18 in Rome to study political^ 
economic and ^financial as-” 
pects ofTstabiKzmgr Albania^ 
Reuters reported from Rome. 

The Foreign Ministry said 
the conference^, which would 
be at ministerial level, would 
be preceded by a preparatory 
meeting May 26 in Rome. 

Irish Elections Likely June 6 

DUBLIN — Prime Minister John Bruton is expected to 
announce Thursday that June 6 will be date for national 
elections, pitting his coalition against a resurgent op- 
position. political sources said. 

They said Mr. Bruton would announce the date 
Thursday morning in Parliament, clearing the way for 
elections to be held five months ahead of deadline. 

Mr. Bruton "s Fine Gael and its Labor Party and Demo- 
cratic Left coalition allies are losing ground in public- 
opinion polls. The latest survey, published last week, 
showed them 12 points behind Hanna Fail arid the 
Progressive Democrats. The parties in Mr. Bruton's co- 
alition trailed by 6 points in April. 

He came to power without an election in 1994 after the 
Fianna Fail-led coalition of Prime Minister Albert Reyn- 
olds collapsed in a dispute over senior legal appoint- 
ments. (Reuters) 

Greece Closes Border Crossing 

GJTROKASTER, Albania — The Greek Consulate in 
the border town of Gjirokaster, as well as the main 
crossing into Greece, were closed Wednesday after a 
fresh wave of violence, residents said. 

Greek Foreign Ministry sources said in Athens that the 
closures were temporary, and that it was hoped the 
consulate could reopen Thursday. 

Albanian officials could not be reached for comment, 
but a resident said fighting between gangs of Albanians 
had forced the Greeks to close the crossing. 

Albania was plunged into chaos in February and March 
after pyramid investment funds collapsed. Many people 
still are armed with looted weapons. (Reuters) 

8 Questioned in Paris Attack 

PARIS — The police were questioning eight people 
Wednesday in connection with a bombing in a Paris 
subway station last year that killed four people, French 
radio reported. 

Radio France Info said those being questioned were 
linked to Islamic fundamentalist groups. The radio said 
me interrogation had been ordered by Jean-Louis 
Bruguierc. an ami-terrorist judge who is investigating the 
Dec. 3 bombing. The authorities suspect Algerian Islamic 
militants in the attack. fAP) 

Constitutional Outline for Italy 

ROME — The work of an all-party parliamentary 
commission on constitutional reforms was entering a new 
phase Wednesday, with its chairman scheduled to outline 
proposals to give Italy stable government and more ef- 
fective lawmaking. 

The chairman, Massimo D’Alema, head of the Demo- 
cratic Party of the Left, was to report on the recom- 
mendations of four subcommissions and raise the curtain 
on the next and most delicate phase — voting on Drooosals 
in coming weeks. r 

A key issue before the commission is whether the 
president and prime minister should be elected directly 

Center-left parties favor having coalitions identify 
their candidates- for prime minister before national elec- 
tions. rhey also want the prime minister to have more 
executive authority, such as the power to dissolve Par- 
liament in case of a no-confidence vote. (Reuters) 

■*»■■■ m 

iw anur utZ 


Gdansk Shipyard 
To Get Nightlife 

The Associated J*ress 

WARSAW — Seventeen years 
ago, the Gdansk shipyard gave birth 
to the Solidarity movement, which 
helped free Poland from Commuri-: 
ism. The bankrupt shipyard is now 
giving birth to a disco. 

A private company has rented 
one of tiie shipyard warehouses, 
and work has begun to turn the hall 
into a discotheque, Bogdan 
Oleszek, a shipyard manager, said 
Wednesday. He Said the hall, next 
to one of the shipyard gates in cen- 
tral Gdansk, had not been used fur. 

The 50-year-old shipyard, where 
Solidarity became the first inde- 
pendent trade union in the Com- 
munist bloc in 1980, was declared 
bankrupt last August under a debt 
of about $150 million after several 
banks refused to extend loans. The 
government, which owns . 60 per- 
cent of the yard, announced March 
6 that it was closing and laid off 
about 3,600 workers. • _ 

About 800 people still work at 
the shipyard, completing construc- 
tion of a ship for a Norwegian con- 
tractor. A goyenunent^appcfinted; 
receiver is waiting until me' end of 
May for offers to buy the yard. 


wn nurrrl »'um network* 

„ «.«*■ — - 

A Prime Minister Hears Footsteps 

In French Election, It Appears, Juppe Rhymes With ‘ Scapegoat ’ 

By Charles Trueheart 

Wash ington Post Service 

BEAUMONT, France — This was 
supposed to have been a campaign 
about France's efforts to put its budget- 
ary house in order and find a place in die 
new European order. But it has found 
whatever focus it has in the single issue 
of divorce. 

The beleaguered marriage in question 
is that of “the First Couple," as the 
partners are known here: President 
Jacques Chirac and Prime Minister 
Alain Juppe. 

Mr. Chirac’s job is not at stake in the 
two-round parliamentary elections thai 
he called for May 25 and June l.Buttfae 
future of Mr. Juppe, the leader of die 
center-right government, is in play 
whatever the outcome. 

An unexpected defeat would give 
France a political version of a shotgun 
wedding: “cohabitation," with a pres- 
ident and prime minister of different 
parties. But even if Mr. Juppe and Mr. 
Chirac's party, Rally for the Republic, 
and its partner. Union for French De- 
mocracy, eke out a victory, as polls still 
suggest they will, Mr. Juppe will be a 
likely candidate for the high dive. 

Mr. Chirac and Mr. Juppe are not just 

political allies. Mr. Juppe, 51 , has been a 
Chirac acolyte for most of bis political 
career, and tbe president has stood by 
him in worse moments, of which there 
have been several in the past two years. 

Neither man, after nearly two years in 
office, is terribly popular with die 
French people. But for Mr. Chirac, the 
country's quasi-monarchical governing 
system and a seven-year term that still 
has five years to run permit him to 
preside over tbe legislative campaign 
from a certain distance. 

Mr. Juppe has dismal approval rat- 
ings — they hover around 25 percent, 
tbe lowest for a prime minister in nearly 
40 years. Mr. Chirac's are not much 
better, but his prime minis ter bears the 
brunt of responsibility for the governing 
coalition's fortunes. 

■ Some prominent members of the gov- 
ernment are sending more or less public 
signals that Mr. Chirac’s chances of 
winning will depend on an implicit 
promise to dump Mr. Juppe. The para- 
doxes abound. 

Mr. Juppe was forced to insist that he 
was not a candidate to succeed himself 
as prime minister, which seemed ar odds 
with his well-pub licized program for the 
first 40 days of the new government he 
would lead. In Mr. Chirac’s single in- 

tervention in tbe campaign last week, he 
mentioned Mr. Juppe not at all. 

Mr. Juppe’s acute discomfort was 
evident Monday night at a campaign 
appearance here in central France on the 
native soil of the last French president 
from the political right. Valery Giscard 
d’Estaing, who served from 1974 to 
1981 ami who presided over the rally for 
local center-right candidates. 

It was Mr. Giscard d’Estaing who 
praised the younger Mr. Juppe two years 
ago as the “very best of his gener- 
ation.” But sitting side by side on stage, 
Mr. Giscard d’Estaing and Mr. Juppe 
barely conversed. Their neatly back-to- 
back body language bespoke a chill that 
was well understood in the hall. 

Last week, Mr. Giscard d’Estaing 
went on television in the role of senior 
statesman and revealed that he had ad- 
vised Mr. Chirac not to call these elec- 
tions, that be had told the president that 
what the French people really wanted 
was not a confidence vote bat “a dif- 
ferent way of governing.” The com- 
ment was widely interpreted to mean: 
Heave Mr. Juppe overboard. 

When it was his turn to speak 
Monday night, Mr. Juppe turned Mr. 
Giscaid d’Estaing’s supposed slight to 
his own advantage, declaring thai “a 

Hv&xn/fl&ncr Pmur-frac 

Alain Juppe applauding a boy who wanted a better view of the French 
prime minis ter as he campaigned this week in a suburb of Strasbourg. 

different way of governing" means 
“replacing bureaucracy and statism 
with proximity and participation.'’ 

Mr. Juppe can feel fairly that he is 
being victimized for carrying out, or 
trying to carry out, the policies of 
budget-cutting and reforming the sys- 
tem of social benefits that the electorate 
seemed to endorse by electing the cen- 
ter-right party in 1993, and a center- 
right president two years later. 

But his initial efforts to wield the 

budgetary knife, in the autumn of 1995, 
provoked the bi gg est demonstrations 
France had seen since the spring of 
1968. The government backed off. 
Thanks to that, thanks to a record post- 
war unemployment rate that refuses to 
budge and thank s to a bloodless political 
style, Mr. Juppe now seems to embody 
what the French detest in their leaders. 

“He has become the ritual scapegoat 
of all the ills of the day,” wrote Alain 


To Get tysJfoH 





Croatia Quietly Seizes Homes of Serbs Who Fled War 

Ti By Chris Hedges 

_j- New York Tunes Service 

Cr ® at5a — The Croatian 

to ethnic Seri* who we£ £1 
PgH**» solera Croatia and has 
a program to settle ethnic 
Qroats from Bosnia and Serbia In tbe 
seized Droperty, relief workers and dip- 

B ioitimillion-doUarprogram was 
tended to woo Croats living 
specially the 100.000 or so 
-Croat refugees now in Ger- 

hbmbsZiC 1 ™ 8 ’ h " n “ nfi!cattd 

n’f Ik 7/ ' j? 16 may crush any hope 

;^,- j5i, ~:C l U a J lcr a§! trial more than 350.000 exiled aJid dS 


placed Croatian Serbs will be able to 
return home, as called for in the Bosnian 
peace accords negotiated in November 
1995. In addition. Western diplomats 
have said it has raised questions about 
Croatia's aspirations to join the Euro- 
pean Union. 

The International Committee of the 
Red Cross and the Organization for Se- 
curity and Cooperation in Europe, which 
operate field offices in the area of south- 
ern Croatia known as the Krajina, said 
that at least 90 percent of the approx- 
imately 2,000 ethnic Serbs wbo have 
come back in the last few months under 
a special United Nations agreement have 
been denied access to their old homes. 
And in numerous cases, the agencies 
said, those wbo returned found that their 
homes had been occupied by Croats just 

days before or i 

The town otKistanje. 24 kilometers 
(IS miles) southwest of Knin, is the 
Croatian government's showpiece. Be- 
fore tbe war it had a population of nine 
Croats and 1,980 Serbs. All but a few 
older Seths fled in 1995. The houses 
were looted by the victorious Groats and 
many were burned. 

But last year the government in 
Zagreb began to renovate 200 homes. It 
moved 80 ethnic Croatian families from 
the Kosovo region of Serbia into the 
homes on March 23. and was to move an 
additional 120 families into tbe remain- 
ing houses this week. 

Duson Karanovi, 52. and his wife, 
Ruzica, 49, an ethnic Serbian couple, 
returned March 13 and moved back into 
the home they built 20 years ago. But 

when buses filled with ethnic Croats 
from Kosovo, accompanied by govern- 
ment officials and a Roman Catholic 
priest, arrived 10 days Later to take over 
the town, the Karanovis were evicted. 

“As soon as it was dark, about 20 
Croats walked into my house and told 
my wife and me to get out and never 
come back.'* Mr. Karanovi said, seated 
at a small table at tbe home of his wife’s 
elderly parents in the next village. ‘ 'They 
said this was no longer our home." 

The two remaining Serbian couples, 
like the others wbo were allowed to 
return, are over 50 and came without 
children. They gather together each 
night to protect their neighboring 

Croatian officials spray-painted black 
numbers on the fronts of the two homes. 

both partly renovated, and told the 
couples the bouses have been assigned 
to ethnic Croats who will arrive soon. 

"After we came back in March, 
someone lit a fire in the house," said 
Strbac Savo. 64, as he stood outside the 
home be built in 1 952. * ‘Then the Croa- 
tian authorities came by and told my 
wife and me that this was not our home, 
that we had no right to be here. Now we 
are waiting to see what happens when 
the new Croats come in a few days.'* 

A Serbian farmer who returned home 
last month was killed by a booby- 
trapped hand grenade placed in a hay- 
stack on his farm. Another farmer work- 
ing in his field was shot at by Croatian 
neighbors last week. And some people 
who came back in the hope of resuming 
their lives have fled again to Serbia in the 

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Turkey Troops 
|lnter Iraq in 
prive Against 
Kurd Rebels 


ZAKHO, Iraq — Several thousand 
Turkish troops, backed by tanks and 
hravy artillery, pushed across the bor- 
der into northern Iraq on Wednesday in 
a move against separatist Kurdish rebel 

Witnesses said the assault followed a 
security sweep by local Iraqi Kurdish 
authorities, who ordered all journalists 
to leave the border region, confiscated 
nfbbile telephones and film. 

7 Tbe state-run Anatolian news agency 
reported clashes between troops and the 
Turkish separatist Kurdistan Workers’ 
P&ty, in a region h identified as Sar- 
isarilar. It also said troops had cornered 
agroup of Kurdish rebels just inside the 
bonier opposite Turkey’s eastern 
region of HakkarL 
agency said Turkish forces sup- 
ported by Cobra helicopters had inflic- 
ted heavy losses on the rebels. 

. Baghdad protested against tile move, 
saying it contravened international law. 
Ifsaia there had been many casualties. 

‘An Iraqi Foreign Ministry spokes 
nun said me Iraqi government ‘‘rails cm 
the Turkish government to withdraw its 
-invading troops from inside Iraqi ter- 
ritory immediately," the Iraqi press 

a ^Tinkish I ^rei^i Ministry spokes- 
man said the operation was a ‘‘limited” 

""rT^T i~ 77 « ‘ f 1 • • 

Rjmufl Yans/Agencc Fhocd-Picsk 

Turkish t anks and troops advancing toward the Turkish-Iraqi border Wednesday. The Iraq government 
denounced die action and demanded the immediate pullout of the troops chasing separatist Kurdish rebels. 

one, in coordination with local Iraqi 
Kurds, to oust separatist guerrillas from 
the border marshes. 

But a senior security source said, 
“Hus is a wide and comprehensive 

More than 22,000 people have been 
killed in more than 12 years of fighting 
between the army and the Kurdistan 

Workers’ Party, which is seeking 
autonomy or independence in mainly 
Kurdish southeastern Turkey. 

■ Ankara Confirms Maneuvers 

Turkey said Wednesday that it was 
going ahead with plans to hold joint 
naval exercises until Israel, despite 
comments by Prime Minister Necmettin 

Erbakan suggesting they may be post- 
poned, Reuters repotted from Ankara. 

“There is no question of such a post- 
ponement,” Defense Minister Turban 
Tayan said. “At the moment it is not clear 
when these exercises will take place.’’ 

Mr. Erbakan suggested earlier that 
the exercises might be postponed, ac- 
cording to the Anatolian news agency. 

EU Weighs Steps 
To Strengthen 
‘Mad Cow’ Rules 


Commission endorsed a cal] by 
Farm Commissioner Franz Fischler 
on Wednesday for further measures 
to protect consumers against “mad 
cow” disease. 

Pressure for tougher action has 
grown after recent European Union 
inspections showing that member 
states have not been respecting 
food safety rules to eliminate the 
disease, bovine spongiform en- 

Tbe proposed extra measures in- 
clude these steps: 

• British exports of gelatine 
made from British cattle parts 
would be made illegal pending new 
scientific evidence. 

• Risk material from cattle and 
sheep — brains, eyes, spinal cord 
and spleen — would be banned from 
human and animat food 

• Steps would be taken to ensure 
that new standards for processing 
meat and bone meal were respected 
by all EU members. Infected meat 
and bonemeal mixed into cattle and 
sheep feed is believed to be tile 
main cause of BSE. 

“Tbe EU's policy on BSE must 
continue to evolve in the light of 
experience and scientific know- 
ledge with the primary objective of 
reducing the risk to human and an- 
imal health to as close to zero as 
possible,” Mr. Fischler said in a 


last few weeks because of threats from 
the Croats, Red Cross officials said 

“When we question the Croats about 
what is going on, we are told that Sa- 
rajevo and Belgrade do the same tiring/ ’ 
a senior European diplomat said. “This 
is true. But only Croatia is a member of 
the Council of Europe and under con- 
sideration for membership in the Euro- 
pean Union. If the Croats want to be part 
of the West, if they claim to be adearo- 
cratic country, they must adopt a dif- 
ferent approach.” 

Croatian officials in Knin declined to 
be interviewed. But a Foreign Ministry 
official said that no more man 10 per- 
cent, or 20,000 of the prewar Serbian 
population in the area, have shown any 
interest in returning to the Krajina. He 
said these people will be allowed back 
and their legal rights will be respected. 

The Krajina was predominantly pop- 
ulated by ethnic Serbs before the war 
between Croatia and Serbia after Zagreb 
declared its independence from 
Yugoslavia in June 1991. It was seized 
by rebel Serbs, with Belgrade’s back- 
ing, during the seven months of fight- 
ing. The Serbs drove the local Croats 
from the area, destroyed their homes, 
desecrated their churches and operated a 
sort of police state. 

In August 1995, the Croatian Army, 
in a swift attack, took back the Krajina 
and drove out all but about 8,000 of the 

200.000 ethnic Sobs in the region. 

With much of the Krajina in ruins, the 

Croatian Parliament passed a “tempor- 
ary” housing law after the August 199S 
assault The law permits Croats or eth- 
nic Croats from outside tbe country to 
take over Serbian property if the rightful 
owner is absent 

The U.S. ambassador to Croatia, 
Peter Galbraith, who has grown increas- 
ingly critical of Zagreb’s resettlement 
program, has described the “tempor- 
ary” housing law “a Communist-style 
confiscation law in which there is no 
mechanism for rightful owners to re- 
cover their property.” 

But, despite the criticism, the Croa- 
tian government continues to send in 
new arrivals. There are already some 

20.000 ethnic Croats from Bosnia and 
Serbia in the Krajina and thousands 
more on the way. 






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THURSDAY, MAY 15, 1997 




Yeltsin Out of Order 

ttb ttlt#. A Flimsy Compromise in Lieu of Partnership 

w -*■ . . ■ ^ tUs nwifi/' ciinrmif 11 

What is Boris Yeltsin doing running 
on about the conditions in which he 
would or would not fue nuclear 
weapons? This is a difficult question to 
raise at any time, fraught as it is with 
signals that different parties are bound 
to read differently. Certainly it is not a 
necessary or helpful question to be 

Cold War moment. Relations among 
the acknowledged nuclear powers are 
proceeding productively on non-nu- 
clear matters. These powers have made 
a substantial effort (the nuclear non- 
proliferation treaty, the comprehensive 
nuclear test ban) not to encourage die 
nuclear ambitions of others. 

Mr. Yeltsin’s words arose from 
what is called a new security doctrine 
drawn up by Russian strategists to re- 
flect the diminis hed state of Russian 
conventional forces and of Russian 
self-confidence as welL These new cir- 
cumstances, it can be argued, required 
a doctrinal response. But they require 
even more some common sense. 

Russia is now in the circumstances 
the United States was in daring the 
decades of confrontation of two huge 
armies in Europe. Washington that 
speculated, as Moscow does now, that 
hs conventional forces might be over- 
run; in the name of preserving de- 
terrence, it warned of a nuclear re- 
sponse, or, as it is called, nuclear first 
use. But there is now no conceivable 
possibility of Russian conventional 

forces being overwhelmed. It becomes 
potentially de stabilizing just to pub- 
licly contemplate and chew over the 
prospect. Going public with, an alarm- 
ing answer to a hypothetical question is 
not awfully helpful as policy or as 
diplomacy. Mr. Yeltsin's words will be 
read as stirring up tensions as the de- 
bate to enlarge NATO proceeds. 

The State Department had a con- 
structive answer to Mr. Yeltsin 's foray 
into what to turn is the relatively novel 
field of nuclear doctrine. The spokes- 
man suggested that comment be dir- 
ected to lowering the risks of nuclear 
war and the levels of nuclear weapons. 
Here there is plenty of work for every- 
one. Both sides, for instance, could 
take off alert the warheads they stQl 
have available to program in min utes 
against each other. The ratification of 
the agreement further reducing levels 
of strategic arms remains to be con- 
summated, and a follow-on agreement 
must be prepared. On the Russian side, 
much needs to be done to arrest what 
seems to be the patchy but progressive 
deterioration of the nuclear command 
and control system. The momentum of 
the Nunn-Lugar program for dismant- 
ling weapons has to be maintained. 

In short, the last thing anyone needs 
is to have the commander of a still great 
nuclear force speculating out loud and 
uncertainly about when he would push 
the bottom. 


Awaiting Swiss Amends 

Disclosures about Switzerland’s du- 
plicitous role in World War H and its 
hoarding of Nazi assets have been 
wrenching far the Swiss people, many 
of whom long believed me myth that 
their country was truly neutral. But the 
reckoning is not yet over. Switzerland 
has amends to make, and they must- be 
commensurate with the Nazi wealth 
that it failed to surrender alter the war. 

Apportioning responsibility, today 
for misconduct half a century ago is not 
easy. The United States, which led the 
Allied battle against Germany, made 
its own mistakes, including decisions 
not to accept more Jewish refugees and 
not to bomb the rail lines leading to 
Nazi concentration camps. 

In 1946, in die interests of rebuilding 
Europe and keeping the Soviet Union at 
bay, a divided Tr uman adminis tration 
unwisely agreed to let Switzerland re- 
turn just $58 million of some $400 
million in gold that the Nazis had looted 
from conquered governments and 
transferred to the Swiss National Bank. 
By today’s valuation, that gold board 
would be worth roughly $4 billion. 

Under the same accord, Switzerland 
promised to liquidate non-gold Ger- 
man assets then worth between $250 
million and $750 million, and turn over 
half to the Allies for European re- 
construction and assistance to war vic- 
tims. Switzerland never made good on 
the commitment, even after the amount 
it owed was reduced in 1952. 

That Switzerland was not alone in its 
mis judgments does not excuse it from 
making appropriate restitution today. 
Its collaboration with the Nazis was 
extensive and its moral obtuseness after 

the war quite remarkable- It has no legal 
obligation to reopen the 1946 agree- 
ment, which was valid although flawed. 
But moral considerations weigh heav- 
ily here. The gold was stolen by Ger- 
many. In some cases the gold bars were 
smelted from the jewelry and even 
dental fillings of slaughtered Jews. 
Surely full recompense is due now that 
tiie history of this gold is clear and the 
economic and political pressures of the 
postwar period are just a memory. 
Swiss responsibility for repaying the 
non-gold assets seems equally clear. 

So far Switzerland has established a 
$175 million fund for Holocaust vic- 
tims and proposes to create a $4.7 
billion foundation to help people in 
need around the world, if Stoss voters 
approve the project next year. That is 
far from certain. The government has 
also fanned an independent commis- 
sion to review Swiss conduct during 
tiie war, and Swiss bankers have be- 
latedly agreed to make a full search for 
dormant bank accounts left by Jews 
who were killed in the Holocaust. 

None of these steps represent full 
restitution of Switzerland’s unpaid ob- 
ligations. Should tiie vote on the foun- 
dation fail, the postwar balance sheet 
will be largely unchanged. That would 
be unforgivable. 

If Switzerland frills short, the Clin- 
ton administration can freeze an ap- 
propriate portion of the $86 bullion in 
public and private funds that > .4tzer- 
land invests in the United Suites. It 
should not come to that. Switzerland 
has ample resources. The question is 
whether it has the conviction to act. 


Aii Error Admitted 

The San Jose Mercury News made a 
courageous gesture on Sunday when it 
admitted that articles charging the CIA 
with complicity in the drug trade had 
been poorly written and edited and 
misleadingly packaged. The executive 
editor, Jerry Ceppos, told readers that 
the articles had fallen short of the pa- 
per’s standards at every step along the 
way. His candor and self-cntidsm set a 
high standard for cases in which jour- 
nalists make egregious errors. 

Last fall the Mercury News pub- 
lished an inflammatory and inad- 
equately substantiated series of articles 
suggesting that the CIA abetted the 
crack epidemic in the 1980s by al- 
lowing Nicaraguan dealers to push the 
drug in America’s inner dues. The 
goal, the series said, was to help finance 
the CIA-backed Contra rebels then 
fighting the government. 

There was little hard evidence to 
support these claims. Even so, the 
series was suggestively entitled “Dark 
Alliance: The Story Behind the Crack 
Explosion," and appeared with a logo 
showing a man smoking crack super- 
imposed over the CIA insignia. The 
material, which spread quickly with 
tiie help of the paper's Web site. 

sparked outrage from elected officials 
and provoked investigations in Con- 
gress and at the CIA. After other news- 
papers cast doubt on the articles. Mer- 
cury News editors and reporters began 
an extensive internal investigation. 

The series failed to include available 
evidence contradicting the assertion of 
CIA complicity. “Although members 
of the drug ring met with Contra lead- 
ers paid by the CIA and Webb believes 
the relationship with the CIA was a 
tight one," Mr. Ceppos wrote, “I feel 
that we did not have proof that top CIA 
officials knew of the relationship." 

The Mercury News experience dic- 
tates caution and care in sensitive ar- 
ticles, but it should not discourage in- 
vestigative projects. On other such 
pieces, the newspaper has done solid 
work in the past, and it should not 
shrink from trying again. At a time 
when lifestyle and personality articles 
command ever greaier space, efforts to 
uncover government and private sector 
misconduct are all the more essential. 
Newspapers are among the few in- 
stitutions in America with the re- 
sources and commitment needed to 
expose betrayals of the public trust. 







KATHARINE P. DARR0W. Vice Chairman 

RICHARD McCLEAN, Publisher & Chief Executive 
MICHAEL GETLER. Executive Editor 

• WALTER WELLS, Managing EtBtar -PAUL HORVTTZ, Deputy Managing Editor 
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Dbracurdc la Pubtkaaon: Richard McClean 

Herald Tribune, 181 Amme 92521 NaaDy-sy-Sdnc. France. 

TeL (1)4143.93.00. Fax: Cat, (1) Ad v- <I >41.43.92-1Z. 

fntwprt hnp-Jftpw jhtcom E-Mail: DtfSifcLcwn iBl 

W ASHINGTON — The United 
States and Russia head toward a 
summer of soggy compromise over 
war and peace. Hopes for a clear-cut 
grand bargain to end the Cold War and 
launch a new .strategic partnership be- 
tween Washington and Moscow have 
gone the way of the dodo bird. The 
partnership hopes seem in retrospect to 
nave been impossibly ambitious. 

Bill Clinton and Boris Yeltsin have 
labored mightily just to keep the 
world’s most dangerous relationship 
on track. They have a right to herald 
that accomplishment in this season of 
summits. But it is important that the 
American and Russian leaders recog- 
nize that they come to a closing. 

Urey have reached an implicit ban- 
tam bargain, in which the Russians 
trade their acquiescence to NATO ex- 
pansion for a larger but cosmetic role in 
the major security and economic or- 
ganizations of the West 
The negotiating tactics deployed by 
Yevgeni Primakov, President Yeltsin’s 
wily foreign minister, are revealing. 
Mr. Primakov and others in his ministry 
seem not to believe that even the small 
bargain is sustainable in a post-Y eltsin 
Russia. They allow Mr. Yeltsin to take 
the entire responsibility for the deal 
on NATO, certain to be denounced in 

By Jim Hoagland 

tiie Duma as one-sided and ineffective. 

Even in private talks, Mr. Primakov 
carefully refrains from attaching his 
name or fingerprints to any Russian 
proposal not previously and publicly 
blessed by Mr. Yeltsin, one Western 
negotiator has observed. 

The compensation that Mr. Clinton 
has offered Mr. Yeltsin seems meager 
when measured against Russian de- 
mands. It amounts to a consultative 
Russian role in NATO, and full Rus- 
sian participation at tiie Denver summit 
of the world's most affluent industrial 
democracies in June. 

NATO has thrown in nonbinding 
assurances that the alliance will not — 
for the time being at least — put nuclear 
weapons and foreign bases in the ex- 
Soviet satellites that it will take in as 
members in 1999. 

The West also puts off into an un- 
defined future any discussion of al- 
liance membership for the Baltics, 
Ukraine or other former republics with- 
in the boundaries of rne Soviet Union. 
This is the real diplomatic battleground 
between Washington and Moscow. 

Mr. Yeltsin has in fact played the 
weakest of hands with some skill . On 

° E ^ bi S r™ ' 

strafe the cohesion and consensus of the ^ N . Qxact} y 

on May talyand de^ly 

few days. U.S., German, French, Brit- with a rare forum of equality withother _ 

ish and other allied officials teU me that major Western powers. 

it is now virtually certain that NATO that if there is no serious discu^ion of „ 
headTof government will meet Mr. the world economy at Denver tilths- - 
Yeltsin fo e the French coital to pro- cussion wtil Mb ^ * 

ish and other allied officials tell me that 
it is now virtually certain that NATO 
beads of government will meet Mr. 
Yeltsin in the French capital to pro- 
claim a new era of East- West cooper- 
ation on security^—- 

Mr. Yeltsin told Mr. Kohl in a recent 
Boon meeting that only his personal 
trust in the German chancellor permits 
Russia to go with this deal. Rus- 
sia will not have a veto over NATO 
action, as U.S. officials ceaselessly em- 
phasize, but Mr. Kohl is honor bound to 
protect Mr. Yeltsin’s interests in 
NATO decision-making. 

After Paris the scene shifts to Den- 
ver, where the Group of Seven will for 
one meeting at least become the Group 
of Eight. Mr. Clinton bas softened the 
long-s tanding U.S. opposition to Rus- 
sian par ti cipation in economic discus- 

where else, probably without them/’ 
says a European diplomaL 

In Madrid in early July, NATO will 
hold its summit to welcome a small 
handful of new members while leaving 
the Baltics and others in limbo. 

Mr. Yeltsin. Mr. Kohl and Mr. Clin- 
ton have fashioned a set of personal 
commitments that suit their miniedia t c 
political needs. That is not to be 
at. But they should not confuse 
personal trust with strategy, or con- 
clude that what is necessary now will 
be sufficient for long. They open a 
major redistribution of power and roles 
in world politics. 

The Washington Post. 

An American General Can Help the Chinese to Join the World! 

ica’s highest-ranking mil- 
itary officer. Chairman of the 
Joint Chiefs John Shalikashvili, 
is in China this week to push 
forward Washington’s “com- 
prehensive engagement" policy 
toward Beijing. His visit is proof 
that the policy is working. 

It embodies four central 
aims: to T ttinstitiitinnaliTft the 
relationship between the U.S. 
and Chinese bureaucracies, in- 
cluding the military, to restore a 
strategic dialogue at the highest 
levels; to work together to sta- 
bilize Asia-Pacific security; and 
to discuss security problems 
that disturb both countries. 
There are no shortage of these. 

China is angry about a large- 
scale flow of U.S. arms to 
Taiwan (die first of 150 F-16s 
have just been delivered) and 
about strengthened U.S. secu- 
rity alliances with Japan and 
Australia^ In particular, it fears 
that the U.S -Japan Mutual Se- 
curity Treaty has been re- 

By David Shambaogb 

defined in ways that would en- 
courage Japan’s Self-Defense 
Forces to take on an increased 
naval presence in the region and 
provide logistical support if 
U.S. forces intervened in any 
crisis in the Taiwan Strait 

Beijing recently suggested 
that America’s five bilateral al- 
liances in Asia and the Pacific 
should be abrogated now that 
die Cold War is over and as- 
serted that “Asians can protect 
Asian security." 

General Shalikashvili ’s visit 
provides a key opportunity to 
respond to these concerns and 
pass several messages. 

He should say drat Japan and 
America have legitimate in- 
terest in protecting sea-lanes off 
East Asia, and that both, while 
discouraging Taiwan indepen- 
dence, will not accept the use of 
force against die island. 

He will no doubt reaffirm the 
intention of the United States to 

continue strengthening its al- 
liances in the region, and re- 
assert that its 100,000 troops 
(stationed mainly in Japan and 
South Korea) will remain as 
long as the host countries de- 
sire. Chinese pressure tactics to 
force an American strategic 
withdrawal should be vigor- 
ously countered. 

But General Shalikashvili 
should explain that alliances do 
not require enemies, and that 
regional security can benefit all 
countries, including China. 

His visit offers an important 
opportunity to seek greater 
openness in military matters. 
Concern is widespread in Asia 
about China’s military modern- 
ization program. 

China does not realize the 
degree of knowledge about its 
military among foreign intel- 
ligence agencies and experts. It 
cannot keep its military estab- 
lishment secret even if it tries. 

Greater transparency is the 
way to dispel fears of a “China 
threat.” Those in the West who 
warn of such, a threat are pre- 
cisely those who have not stud- 
ied die Chinese armed forces 
carefrilly. They exaggerate the 
military’s capabilities and ig- 
nore hs pervasive weaknesses. 
By becoming more open, China 
will expose its weaknesses and 
thereby allay fears in the region, 
while at the same time increas- 
ing understanding of its military 
doctrine and deployments. 

General Shalikashvili can 
discuss concerns about Chinese 
sales of weapons to rogue 
states, particularly Iran. China’s 
arms sales abroad are relatively 
small, at less than $1 billion a 
year, but they involve destabil- 
izing weapons, especially 
cruise and ballistic missiles. 

But the general should com- 
mend Beijing for steps it has 
taken in arms control in the last 
two years. It has signed inter- 
national treaties to prevent the 

spread of nuclear, chemical anc{ 
biological weapons, and to bai( 
the testing of nuclear arms. Is 
has said it will adhere to the} 
arrangement for controlling 
missile technology transfers. 18 
has expressed interest in joining} 
other countries in banning fu-j 
ture production of fissile man 
terial that could be used to make} 
nuclear bombs. { 

These achievements are evi 
idence that China is becoming d 
full and responsible member oi 
the international community 
and a responsible partner in 
global security. A strengthen-** 
fog of the U.S. -Chinese military 
relationship will help encour- 
age further Chinese progress. 

The writer is professor of 
political science and interna- 
tional affairs . and director of 
the Sigur Center for Asian Stud- 
ies. at George Washington Uni- 
versity. He contributed this 
comment to the International 
Herald Tribune. 

The Euro- American Alliance Needs to Deepen as It Expands: 

P RAGUE — As I follow the 
debate over whether NATO 
should be enlarged, I have the 
strong sense that the arguments 
are often purely mechanical, 
somehow missing the real 
meaning of die alliance. The 
process of expansion must be 
accompanied by something 
much deepen a refined defin- 
ition of the purpose, mission 
and identity of NATO. 

The alliance should urgently 
remind itself that it is first and 
foremost an instrument of de- 
mocracy to defend mutually 
held and created political and 
spiritual values. It must see itself 
not as a pact of nations against a 
more or less obvious enemy , but 
as a guarantor of Euro-Amer- 
ican civilization and thus as a 
pillar of global security. 

Yet the arguments of many 
participants in the NATO de- 
bate, especially those who op- 

By Vaclav Have! 

The writer is president of the Czech Republic. 

pose admitting new members, 
froze up somewhere in tiie days 
of the Cold War. The subtle, 
instinctive transfer of the old 
way of thinking into the present 
is perhaps even more dangerous 
than the endurance of the 
clearly anachronistic idea of 
two powerful systems at war. 

For decades, the Soviet Un- 
ion and the Warsaw Pact were 
NATO's opponents. But the 
threat was not dangerous be- 
cause it was Russian. It was 
dangerous because it was Com- 
munist and totalitarian. 

Still, it would be preposter- 
ous to believe that after the fall 
of communism and the dissol- 
ution of the Warsaw Pact, over 
which I presided in Prague, 
there were no longer threats to 

p£lfs SSS» nW/tw- Nr*- ft* NY. 10022. TeL (2 '.121 752-3890. AcfllUZ 04R5 

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SA^SS^UOOMOP. RCSSarnentBpmim.CN^^t^ No. 61 337 
01997, Herald Tribute. Ad rights restrveL ISSN- 

Biting Off More Than It Can Chew? 

N EW HAVEN, Connecticut — In 1925, to assuage fears about 
a revival of German aggression, the British government signed 
the Treaty of Locarno. That committed the British Empire to 
uphold the eastern borders of France and Belgium. 

Widely hailed at die time as a major diplomatic achievement that 
finally buried the hatchet of the First World War, this unprece- 
dented British peacetime commitment had ooe drawback — it was 
not accompanied by any corresponding military preparations. 

When the Foreign Office reminded the British chiefs of staff of 
their Locarno obligations in the following year, the military men 
coldly informed tiie diplomats that the country's ground and aerial 
forces, both greatly reduced in die years of peace, were already 
stretched in defending the far-flung Empire. “It follows," con- 
cluded that chiefs, “that so far as commitments on the Continent 
are concerned, the Services can only take note of them ... " 
Amazingly, nobody in Whitehall appears to have been disturbed 
at this discrepancy between Britain v proclaimed foreign policy 
and its actual military capacities. Wrien, 10 years later. Hitler 
ordered German forces into the Rhineland, there was little that 
Britain could do about it 

It is worth recalling this story today because in many ways we 
might be guilty of making the same mistake. A great conflict (in 
this case, the stressful, expensive Cold War) hns come to a clrs: 
and there is pressure to assuage worries abou: ; jure security. T r.-i 
defeated Great Power is torn between desire to join the global 
community and bitterness at its fall and humiliation. 

Neighbors who have borne the brunt of its earlier imperialism 
are anxious for guarantiees of their security. And, instead of the 
British Foreign Office, nowadays we have the U.S State De- 
partment pushing for a treaty that would significantly extend the 
military obligations of the United Slates and its Western allies. 

It is worth asking whether the Pentagon and the rest of the 
Western military establishment have been requested to undertake 
an independent study of whether they could actually fulfill these 
proposed new commitments if a revived, nationalist Russia de- 
cided to challenge the status quo at some tune in the future. 

It is not enough to claim that we can probably pressure the 
confused Yeltsin government into agreeing to NATO’s expansion 
right now, for that says nothing about the consequences. After all, 
the concessions made to the West by the Weimar Republic helped 
to discredit h and fueled the arguments of the nationalists. 

If the U.S. Senate is being asked to ratify the new treats' as 
proposed, and the American people are to support iL then we ou _- bs 
to know what the military planners think about this scheme. One 
suspects that the attitude of the American Joint Chiefs might be 
similar to those of (heir British equivalents in 1 925. 

— Paul Kennedy, author of “ The Rise and Fall of 
Great Powers" and “ Preparing for the 2 1st Century , ” 
commenting for the Los Angeles Times Syndicate. 

Euro-Atlantic values of free- 
dom and democracy. 

The danger is not coming 
from the present government in 
Moscow. The real threats today 
are those such as local conflicts 
fueled by aggressive national- 
ism, terrorism and the potential 
misuse of nuclear arms and other 
weapons of mass destruction. 

As the case of Bosnia has 
shown, NATO • — wife Amer- 
ican leadership — is the only 
consolidated force capable of 
effectively confronting such 
threats while offering other 
countries, including Russia, an 
opportunity to cooperate in de- 
fusing them. 

Certain ways of thinking, 
which involve clinging to the 
stereotypical image of a 
NATO-Russia dichotomy, keep 
us from being able to stand up to 
such threats. Some people 
simply want to continue fight- 
ing the Cold War and consider 
the Russians their chief enemy; 
they see the threat of Russia as 
the reason to enlarge NATO. 

Others, citing the end of the 
Cold War, in effect think along 
the same lines when they say. 
“Let’s not enlarge NATO be- 
cause it might irritate the Rus- 
sians." or "Lei’s not enlarge 
NATO because Russia is not a 
threat anymore.” 

All of them have something 
in common: Their thinking is 
deeply rooted in the bipolar 
world of the past, and they 
grossly underestimate the vari- 
e*v of dangers that exist for de- 
mocracy’. peace and freedom in 
the Euro-Atlantic region and 
elsewhere in the world. 

If this way of thinking pre- 
vails, it will turn the alliance 
: r*n a hon-lessly antiquated 
•- !iiij cf C-.<lc Yi ur veterans. 

Moreover, if NATO fails to 
live up to the new purpose I am 
describing, it will encourage 
some countries — perhaps even 
including some inside the al- 
liance — to return to the kind of 
unfortunate situation that exis- 
ted before NATO, when the 
most powerful nations divided 
Europe into spheres of influ- 
ence and negotiated fee regimes 
that would rule. 

History proves that such 
dealings with sovereign states, 
as if they were commodities 
subject to trade. lead to conflict, 
as was painfully experienced by 
Czechoslovakia under the Mu- 
nich :.^ru* jt-ij'v of 1938. 

For dial reason, it will not 
work to have NATO’s enlarge- 
ment decided by some kind of 
summit meeting of superpowers 
— selected NATO member 
states and Russia. This approach 

also contradicts NATO's fun- 
damental principle of full equal- 
ity among members. 

That principle has enabled 
members of the alliance to elim- 
inate centuries-old conflicts, de- 
veloping and cultivating com- 
mon values in cooperation, thus 
producing greater stability. 

The opportunity to make de- 
cisions about common defense 
should not be denied a priori to 
countries that have embraced 
and advanced Euro-American 
political and cultural values. 
Some of the candidates for 
NATO membership have un- 
dergone pain for the sake of 
these values and have proved 
willing to protect them, as in the 
Gulf War and Bosnia. 

A security vacuum in Central 
Europe exists and could arouse 
unnecessary temptation among 
nationalists and those we sus- 
pect of nostalgia for power 
blocs and regional dominance. 

As I have said many times, if 
the West does not stabilize die 
East, the East will destabilize 
the West If principles of de- 
mocracy win in the East, the 
peace and stability of all Europe 
will be ensured. 

So NATO expansion should 
be perceived as a continuous 
process in which the nations of 
Central and Eastern Europe ma- 
ture toward the meaning, values 
and goals of the enlarged and 
revived alliance. 

Seven years ago, when I 
spoke before the U.S. Congress, 

I said that if the Americans 
wanted to help the Centra] 
Europeans, they should first of 

all help the Soviet Union. Jji 
principle this remains true. 
Many of NATO’s casks coulji 
and should be undertaken wife 
Russia as a partner. 

But such a partnership wife 
Russia must not seek to restrict 
fee sovereign rights of Central 
European countries or Russians 
neighbors to decide on mem- 
bership in security organiza- 
tions. Nor must it restrict the 
alliance's decisions to act. 

An enlarged NATO should 
consider Russia a partner. A 
new democratic Russia and -a 
revived NATO can actively aijd 
quite naturally pursue coa-jf 
structive cooperation in solving 
concrete problems. After alL 
they face common threats. 

Russia and NATO, for ex- 
ample, have an interest in pre- 
venting misuse of nuclear wea- 
pons. And there is always fee 
possibility of new, not yen fully 
recognized tectonic cracks m the 
security map of fee world. 

But Russia is nonetheless a 
Eurasian superpower, so influ- 
ential that it is hard to iraagfee 
feat it could become an intrinsic 
part of NATO without flooding 
fee alliance with fee busy 
agenda of Russian interests. 

Perhaps we have not yet pro- 
gressed enough in redefining fee 
mission and identity of NATO. J 
believe feat expanding the al- 
liance will be a step forward. 
Not only will it require serious 
consideration of the purpose and 
meaning of the alliance, but 
there will be more of us to take 
part in this reappraisal. 

The New York Times. 


1897: Socialist Departs duced his sweetheart and that 

PARIS — The lecture which 
Mr. Tom Mann, fee secretary of 
the independent Labor Party, 
was to nave delivered Friday 
night [May 14] before fee Syn- 
dicat des Ouvriers des Docks et 
du Port at fee Bourse du Travail 
was forbidden by fee police. On 
the same day a writ ofexpulsion 
was issued and the Socialist 
leader left Pans. It was ex- 
plained feat Mr. Tom Mann had 
been given twenty- four hours to 
get out of the country, on the 
express condition feat he atten- 
ded no meeting of Socialists. 

1922: Lover and Thief 

BERLIN — Offended love was 
the motive Kurt Teichinanti 
brought forward as his unusual 
excuse in a trial for burglary 
committed in fee house of a 
Consul of a Foreign Power in 
Berlin. During the trial he de- 
clared feat fee Consul bad se- 

duced his sweetheart and that 
the burglary was an act of re- 
venge. When the jury sentenced 
him to four and a half years, the 
verdict was followed by a 
touching finale. The yourtg 
woman who had been fee rea- 
son for Teichmamt’s crinie 
walked up to fee dock and bid 
her lover a tender farewell. 

1947: Waiting to Wed 

COPENHAGEN — The death 
of King Christian of Denmark 
and fee primers’ strike have 
combined to make it almost 
impossible to get married or 
divorced at the present time. 
One young couple got as far as 
fee altar, but when fee priest 
saw feat the special license^ 
carried the initials of the late 
monarch he refused to marry 
fee couple. All stocks of forms 
necessary for a divorce have 
been exhausted, and until new 
ones can be printed it is im- 
possible to get a divorce. 






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t { 

Franco -American Relations: Boring They’re Not 

P ARIS — “Of course '■ 
said .the former French 
prone m i n ister, chatting ar a 

S pl< ^i il ^ cfa ’“ Frac “and 
die Untied States have con- 
flicimg interests. America 

seeks monopolies 

4 eros P ace ' reactors 

wherever you look. “ 

‘There’s no denying it,” 
Said a much younger busi- 
vesma. “Europe will have 
to be made on the back of 
Araen«L Agriculture, films 
ana TV. no end of clashes; it 
stands to reason that Amer- 
icans oppose Europe's gain- 

By Flora Lewis 

political writer Alain 
Joxe says in Le Monde that 

there is no good reason for 
France to accept integration 
in NATO because, with the 
end of the Cold War and 
changed strategic relations, it 
would only amount to 
France’s “accepting the role 
of a foreign legion,” to be 
sent to put out brushfires “in 
an American system.” 

The crises in Zaire and, 
earlier. Rwanda are re- 
peatedly described in die 
French press as examples of 
the way die United States is 
trying to take over Africa and 
push the French out of their 
own backyard. There is a 

knee-jerk assumption that the 
major, unyielding block to 
France’s playing its proper 
role in die world is U.S. op- 
position. usually insidious but 
sometimes flagrantly hostile. 

Bill Richardson, the UJS. 
ambassador to die United Na- 
tions, made a point of stop- 
ping for talks in Paris after his 
unsuccessful effort to push 
for a smooth change of power 
in Kinshasa. “France and the 
U.S. have shared objectives 
in Zaire,” he told a press con- 
ference — adding, “Write 
that, write that” when jour- 
nalists expressed skepticism. 

' --..S *_ 


About Algeria 

*■■ Myths seem to be deep- 
rooted when it comes to Al- 

There is evidence that vi- 
olence by Islamists who 
aimed to topple the govern- 
ment began long before the 
1991 legislative elections. 
Most of . them were arrested, 
brought befare the courts and 
sent to jail but later were gran- 
ted amnesty by the former 
head of state. 

Radical Islamists, includ- 
ing those who were released, 
formed the core of die Islamic 
Salvation Front, the FIS, and 
determined its strategy, re- 
porting to violence in the con- 
viction that democracy is not 
compatible with the precepts 
— Of Islam. 

Although these are estab- 
: : :• dished facts and can be easily 
checked, many people still 
'maintain that violence started 
x ■ ih Algeria after die 1991 
a.; 'elections were canceled. By 

'such thinking, violence is le- 
Agitimized and, to some extent, 
’’justified, and those who re- 
j -sorted to it are considered not 

i. criminals but militants de- 

; 'finding an ideal — and as 
: r such folly entitled to partic- 
ipate in any process to solve 
- lhe crisis. , 

* 1 This is bow champions of 
'ti nman rights, parliamentar- 
ians and opinion makers — 
-people who have not been in 
Algeria for a long time — 
Jiave come to be so lenient 
-about the most reactionary Is- 
’-laxnic fundamentalism, which 
kills journalists and academ- 
ics, rapes and beheads wom- 
en f commits mass murder and 
Mutilation, and destroys and 
'bums schools, factories and 
'Other public fadliM 8 - 

Strange as it may seem, 
‘these ^rmririflls are put on foe 
•same level as the security 
'forces, which are acting in 
“self-defense to protect the Al- 
gerian state and population. 

Another myth about the 
1991 legislative elections 
.should be exposed. The first 
iimultiparty elections in Al- 
Jgerian history were rigged on 
a large scale by lhe Islamists, 
‘ who resorted to intimidation, 
.'blackmail and gross manip- 
■glation. No legitimacy could 
J*be recognized or granted m 
"such conditions. 

^ Algeria is being asked to 
"start a dial ogue wife terrorists 

that no one would ask, say, 
France. Britain. Sjpaio or any 
other self-respecting govern- 
ment to engage in. 

It is high time for all those 
who would comment on Al- 
geria to be more knowledge- 
able about what is going on in 
the country and to forget 
about ready-made ideas that 

do not fit the facts. In par- 
ticular, they should refrain 
from giving good and bad 
marks to those who are spar- 
ing no effort to overcome the 
present difficulties. 

Rather, they should ex- 
press their solidarity with the 
Algerian people who are 
fighting ih different ways to 
prevent their country from 
becoming another Afghanis- 



The writer is the Algerian 
ambassador to Sweden. 

Ancient Mud 

Regarding “Voices From 
1946 Echo in the Debate on 
Swiss Golf (May 10) and 
“ Tainted GoUT’ ( Editorial , 
May 10): 

I have not read the Eizen- 
stat report, but I suppose few 
have. It is astonishing if it 
concludes that the Swiss 
“prolonged” the war and that 
the Swiss attitude should 
have changed when foe Ger- 
man Army got whipped at 
Stalingrad in early 1943, 
more than a year before foe 
Allies landed in Western 

This can only increase 
Swiss support for those who 
would kill the solidarity foun- 
dation and compensation pro- 
gram that the Swiss govern- 
ment has proposed. 

In addition to putting foe 
whole process 0 f reconcili- 
ation and compensation in 
even more jeopardy, how can 
foe U.S. government come to 
these trijpily subjective con- 
clusions 50 years after and 
with no direct knowledge of 
foe facts or circumstances? 
How can the Clinton admin- 
istration accuse the TVuman 
government of an * 'enormous 
blunder*’ in putting the re- 
building of Europe and fight- 
ing communism ahead of 
squeezing the Swiss more? 
The challenges facing Pres- 
ident Harty Truman were far 

more daunting than those fa- 
cing Bill Ghnlon, and the 
Clinton record hardly gives 
hhn foe standing to attack the 
Ti nman record, least of all on 
moral and military matters. 

The Swiss government was 
equally maladroit in its re- 
fusal to renegotiate the 1946 
agreement before it even read 
thereport. _ _ 

•' Mutual . ‘ recriminations 
about what happened 50 
years ago (when I was in the 
U.S. Army) serve only to 
provide ammunition to mis- 
chief makers on both sides. 
Yes, establish the truth of the 
past, but leave that task to the 
historians. Both U.S. and 
Swiss governments should 
deal with today and rapidly 
get moral and material com- 
pensation to foe uncom- 
pensated victims of foe past, 
instead of throwing ancient 
mud at each other. 



U.S. Hypocrisy 

Regarding “US. Diploma- 
cy Tries Some ‘Other’ issues” 
(May 6): 

“We are all one family, 
and wfaen.oue part of our fam- 
ily is not happy or suffers, 
we all suffer.” 

Those warming and moth- 
erly words, in a talk to Gua- 
temalan villagers, come from 
Madeleine Albright — the 
secretary of state of the very 
country which for years 
aided foe Guatemalan mili- 
tary that massacred thousands 
of Indians. 


Bath, England. 

If you want a definition of 
hypocrisy, try President Bill 
Chnton’s going down to 
solve Latin Americans’ 
poverty problems while at the 
same time doing his utmost to 
sell titem arms they don’t 


Ipswich, England. 

Letters intended for pub- 
lication should be addressed 
“ Letters to the Editor” and 
contain the writer's signature, 
name and full address. Letters 
should be brief and are sub- 
ject to editing. We cannot be 
responsible for the return of 
unsolicited manuscripts. 



. It r s never been easier 
to subscribe and save. 

Just call toll free 
at 0 800 1 7538. 

Personal relations between 
President Jacques Chirac and 
President Bill Clinton, who is 
papular in France, are said to 
be better than such relations 

The French 
believe America 
keeps them from 
playing their real 
role in the world. 

have been for years. There 
have always been ups and 
downs, and, intermittently, 
well-publicized proclamations 
of deep and enduring friend- 
ship to take the edge off the 
latest well-publicized spat. 

But foe undercurrent of re- 
sentment and the assumption 
of America’s absolute hege- 
monic ambition persists. It 
can break out again over 
trivia. It never goes too far, 
but it never goes away. 

This reflex is essentially 
rooted in what the French call 
(heir “political class” — all 
across the spectrum, left, 
right and center. 

The public at large is not 
anti-American; there is in fact 
a historic, sentimental attach- 
ment that French and Amer- 
icans continue to feel for each 
other. But among the people 
who analyze and decide on 
world affairs, there is a deep 
sense that for France and 
Europe to flourish, they must 
show much more vigor in say- 
ing“no” to America. 

The French are scarcely 
aware that they do not ne- 
cessarily speak for Europe in 
their belief that America 
seeks to undermine h. The 
Germans don’t hold that view, 
thnng h in interests of tending 
the crucial Franco-German 
pannoship they sometimes 
back Pam. Neither do foe 
Italians or the Dutch, not to 
speak of foe British- 

Therc has been a steady, 
consistent, fundamental sup- 
port for European integration 
in Washington through all ad- 
ministrations since the start of 
the Marshall Plan 50 years 
ago. which laid the ground for 
consolidation. Yet it is as- 
sumed in France, no matter 
how often American leaders 
say the opposite, that Wash- 
ington prefers to deal with a 
divided Europe. 

The plan for a tingle Euro- 
pean currency is a case in 
point. The current official U.S. 
position is that it is entirely up 
to the Europeans to decide on 
this intensely controversial is- 
sue, but that the United States 
has no objections and that 
Europe's economic vitality is 
good for the U.S. economy. 
Deputy Treasury Secretary 
Lawrence Summers recently 
declared that “American in- 
terests are well served when 

It is evident that the dol- 
lar’s dominant role as the 
world reserve currency, 
which enables the United 
States to run a huge foreign 
payments deficit, will be 
challenged if the euro 
achieves a strong success. 
Mr. Summers says foe United 
States isn’t worried and 
doesn’t mind the challenge. 

But he isn’t really believed 
in France because by their 
own logic the French expect 
Washington to try to subvert 
the plan, which Mr. Chirac 
justified to his constituents as 
the only way to “protect” 
them from foe dollar. 

Despite foe diplomatic 
rhetoric, there is a disconnect 
here. Former Secretary of 
State James Baker writes in 
support of maintaining and 
expanding NATO that “it 
must be remembered that 
NATO has been as much a 
political as a military alliance 
among free states.” Enlar- 
ging it and establishing a 
structure for collaboration 
with Russia, he says, “is part 
ofa global will to replace con- 
frontation with cooperation.’ ' 
He was making an argument 
to Americans not too sure 
they want or need to commit 
themselves to protecting 
more distant countries. 

France still wants the 
prestige and influence that 
went with empire but no 
longer has the means, and 
looks to Europe to provide the 
solid new platform for its am- 

There really is room for 
accommodation here. Some 
interests do conflict. They are 
overwhelmed by much larger 
shared needs, a situation that 
in itself contributes to French 

At least Franco- American 
exchanges are never likely to 
get flat and boring. 

O Flora Lends 

In a New Social Experiment, 
Britain Remakes Itself Again 

By Philip Allot t 

C AMBRIDGE, England — Big re- 
versals of fortune in British general 
elections have always been outward signs 
of big changes wiihm British society. The 
election of 1997 is no exception. Britain is 
in the process ofremaking itself yet again in 
its own peculiar way. 

Britain's oddness is Britain’s oldest tra- 
dition. Penitus toto dh/isos orbe Britannos. 
as Virgil said more than 2,000 years ago, a 
mere 5,000 years after we had indeed been 
totally isolated by the sea from the rest of 
the world. “Britain is a world by itself," as 


Shakespeare made a first-century Briton 
say in Cymbetine. * ‘In the world’s volume. 
Our Britain seems as of it, but not in it.” 

Britain’s second-oldest tradition is per- 
manent revolution. For Montesquieu it was 
our supposedly dreadful weather that makes 
us impatient, and our impatience makes us 
“incapable of bearing the same thing for 
any long continuance.” Britain has been a 
busy laboratory of social experiment for 15 
centuries. At foe end of the third millennium 
of foe series of social experiments foat 
began in ancient Greece, it looks as if. once 
again, Britain is producing some new results 
which could be of interest to more serious 
and sensible people beyond our shores. 

1 . We have dispensed with a ruling class. 
And with it has gone the useful piece of 
civic engineering that used to be called 
deference. The truth is foat no Briton ever 
touched a forelock with any sense of inner 
conviction, but now no one shows any ritual 
social respect for anyone else. 

2. We are on the point of dispensing with 
foe idea of government. We have never had 
to endure that continental aberration known 
as the State, but we have, for far too long, 
pot up with a very great deal of government, 
by kings and their acolytes and, more re- 
cently, by Her Majesty’s Government 
What Adam Smith called foe “tasks of 
government” are now being renegotiated 
and 'redistributed to whatever person or 
agency, if any, seems appropriate. 

3. We are on foe point of dispensing of the 
idea of politics. Politics used to mean oae of 
two tilings — either what Thomas Jefferson, 
speaking of Britain, called the eternal contest 
of the Ins and Outs, or what, in a continental 
tradition, purported to be a profound dia- 
lectic of ideas. Jefferson described the Brit- 
ish government of his time as the “most 
unprincip led al this day known.” While foe 
Whigs, than the Liberals, then Labour tried 
to introduce talk about principles into British 
politics, the Tories, later foie Conservative 
Party, had abetter idea: Principles are things 
you know yon have, not things you talk 

about in a polite society. History has vin- 
dicated the Tories. 

4. We are on the point of dispensing with 
culture. Britain was not only the land of the 
free but also the home of the connoisseur, 
taking expert delight in the best of con- 
tinental high culture. But we drew the line at 
mteUectuausm. Ideas for ideas' sake were a 
symptom of moral degeneracy. But Britons 
have always been a restlessly imaginative, 
creative and inventive people, nowhere 
more so than in games. So now culture has 
become not merely an industry in the Amer- 
ican manner, but foe British nation BXpi&y. 

5. We long since dispensed with religion 
as spiritual engineering. Voltaire's wise ob- 
servation. as reformulated by someone else, 
that we have 60 religions but rally one sauce 
meant that religion was a team sport like 
everything else. But recently we have de- 
veloped a powerful new form of psychic 
engineering. The television soap opera is the 
British nation in analysis. The whole pop- 
ulation experiences night after night, as one 
unified psychic experience, every conceiv- 
able social and moral and psychological 
problem. As a consequence, the British are 
becoming articulate and discriminating in 
such matters, as if they had all graduated 
from some idealized form of university or as 
if they had all become French. 

6. Someone called us a nation of shop- 

keepers, and the more sensitive souls m 
Victorian society shuddered at a nation of 
Philistines whose only genuine spiritual ex- 
perience was the worship of money and of 
what it could buy. But money was another 
thing we did not talk about in mixed com- 
pany, and economics was, as Carlyle said 
and everyone agreed, foe science. 

Now, all who can find some sort of em- 
ployment are chain ed together in a single 
chain gang, piling up the wealth of the nation 
and talking about it obsessively. 

7. For foe British, women and foreigners 
were always a problem. The privileged 
classes left their monastic schools and came 
across French women who had the dis- 
turbing characteristic foat they could be 
intelligent and attractive at the same time 
and hence, potentially, the equal of men. 
Foreigners could not be our equals, but they 
were unfailingly interesting, more inter- 
esting than us, so we traveled a lot, and 
became connoisseurs of foreignness, col- 
onizing absentmindedly along the way. But 
now we have learned not only that no island 
is an island, but foat all men are equal, and 
some women are mare equal that any men. 

These are tides in the affairs of Britain. 

The writer, a fellow of Trinity College. 
University of Cambridge, contributed this 
comment to the Herald Tribune. 

Hotel Inter-Continental, Singapore 

You’re always in tke keart o f the 
city and at tke soul of tke culture. 

One World. One Hotel. 
Uniquely Inter-Continental. 






















































































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PAGE 10 



Moscow’s New Relationship With West: ‘Good-Bye to the Old NATO fhen 

* ^ B 

By William Drozdiak 

Foa Service 

BERLIN — The terms of the security part- 
nership reached in Moscow on Wednesday be- 
' tween Russia and NATO portend the most dra- 
■ mati c upheaval in the 44-year history of the 
: world’s most successful military alliance. 

The “founding act” that prescribes a new era 
.of cooperation between Moscow and the Western 
security organization once demonized as the ul- 

— to be run by a triumvirate including the 
secretary-general of the alliance, the Russian 
ambassador and a NATO envoy who will rotate 

are most likely to include Poland, Hungary and stronger position in relation to NATO than ap- 
the Czech Republic. Yet even before the alliance piicant countries/' said Wlodzimierz 

« _ . = -« Aa ... IwiA tnirtiriw ‘ FftYTTl 

embarks ext its i 

i even more 

consensus on tricky security issues and would The most pressing problem is bow co cope with 

inevitably undermine cohesion within the al- organizational demands. NATO’s new relation- 
liance. ships with Russia. Ukraine and up to a dozen 

But optimists say the deal with Moscow other Eastern states now threaten the alliance 
ovides NATO with a new 


■ ornate enemy may require a bold leap for the 
-Russian imagination. But it will make far greater 
.demands on the way the American-led Neath 
♦Atlantic Treaty Organization conducts business. 
* The creation of a permanent council, in which 
NATO and Russia will discuss security matters 
♦ranging from peacekeeping and arms control to 
-terrorism and drag trafficking, may quickly su- 
.persede the alliance’s main policymaking body 
•that embraces NATO’s 16 member nations ana 
. the Atlantic Partnership Council linking the allies 
with other former foes in the East. 

Pessimists fear that the NATO-Russia council 

lease on life, after being de- - 

prived of its original purpose NATO 001 
with die passing of the Cold .. 

War. If the relationship with Comment 

Russia evolves successfully, 

NATO could emerge as the centerpiece of a new 
continental security order and the principal guar- 
antor of European stability in the 21st ceauury. 

“Either way, it means good-bye to the old 
NATO," a senior alliance diplomat said. "The 
old days of strength through simplicity are gone 
forever. We are heading for an unknown destiny. 
We could end up as the world’s powerful force 
for world peace or a talking shop without any 
credibility. ’ 

NATO leaders plan to gather in Madrid in July 
to announce new candidates for membership that 

NATO could emerge as the centerpiece of a new 
continental security order for the 21st century. 

Cimoszewicz, the Polish prime minister. "From 
that point of view. Poland is interested in achiev- 
ing at least the same status in the time of our 
negotiations with NATO.” . . 

During six rounds of intensive negotiations, 
the NATO secretary-general , Javier Solana 
Madariaga, was constantly reminded by his Rus- 
sian counterpart. Foreign Min- 
■ ister Yevgeni Primakov, of 
f what Moscow considers its ul- 

timate red line: no encroach- 
ment on the territory of the 
former Soviet Union. 

with total gridlock. Officials at NATO headquar- Mr. Solana stuck by what has become one of 

(wv nirtciilo Rniecle rav ifw lai-lr nf emro anA NATYVe iinMmnmill,eina nficitinnc* P.VftTV 113- 

ters outside Brussels say the lack of space and NATO’s uncompromising positions: Every na 

even Ukraine or Russia itself — becoming. mem- 
bers will not provoke such grave consternation. 

In the meantime, NATO plans to press ahead 
with an expanded version of its military part- 
nership programs with Eastern countries. Hie 
new Atlantic Partnership Council will include 27 
member states and serve as the main forum for 
encouraging new democracies to adopt policies, 
such as civilian control over the mili ta r y es- 
tablishment, that are basic criteria for becoming 
future NATO members. 

A serious long-term challenge, NATO of- 
ficials say, will be the preservation of a pre- 
dominant role for the United States in the broad 
security alliance emerging in Europe. Alliance 
sources say that during the talks with Russia, 
there were encouraging signs that Moscow did 

■Tjrijffir £ 

,,.,7 .wvifiw, 

\i"" ■■ — 

plethora of meetings could inflict a deadening 
blow on a military alliance that has prized its 
emphasis on efficiency. 

Poland. Hungary and the Czech Republic are 
worried that they may be excluded from im- 
portant meetings in which Russia will have a 
voice while they await full membership status 
that may take up to two years to ratify. 

"It can be a paradox that a country that is not 

tion must be free to choose its own alliances. 
While Latvia, I ithuania and Estonia will not be 
given serious consideration in the first wave of 
expansion, NATO allies have insisted that this 
possibility cannot be ruled out in the future. 

NATO diplomats say they hope Moscow’s 
lingering fears about the alliance will dissipate as 
relations become more relaxed in this new phase of 
closer cooperation. After a period of time, they say. 

not evince any desire to see reduced American 
influence. In fact, the officials said that Russia 

going to join NATO, like Russia, may get a tensions over the prospect of the Baltic states — or 

now seemed to endorse the general alliance view 
that keeping the United States involved in Euro- 
pean security was a positive force for stability. 

"We ail realize the big question of American 
commitments in the future will lie with the U.S. 
Congress,” said a senior European diplomat. 
"NATO is about to go through major changes, 
and so will the American role.” 

NATO: Pact to Allow Eastward Expansion 

Continued from Page 1 

said it had no current plans to perman- 
ently station "substantial combat 
(forces” in Eastern Europe. 

L in “incorporating in the document nu- 

merous guarantees which to a significant 
>ennan- degree reduce or minimize the negative 
combat consequences of NATO’s expansion for 
Russia's national interests.” He did not 

The Western diplomat said NATO spell out the guarantees. 

-had not given in to any Russian demands 
that would have left the new members as 
: second-class nations of the aHianca. 

The diplomat also said the pact in- 
cluded several confidence-building 
i measures intended to assuage Moscow's 
■ concerns. The agreement would create a 
. political council on which Russia will be 
a member. Separate but related talks on 
i modifying the 1991 Conventional 

Forces in Europe treaty, which Russia binding nature.” 

Moscow had demanded that the doc- 
ument be legally binding, but cite West- 
ern diplomat said it would only be "po- 
litically” binding. It will be signed by 
political leaders — but not require par- 
liamentary ratification — as NATO had 

Bui Mr. Yeltsin insisted in his tele- 
vision appearance that "we clearly see 
the binding nature of this document. Hie 

r has sought, are to continue. 

In his television appearance, Mr. 
• Yeltsin said he had spoken to Mr. Solana 

Mr. Yeltsin appeared somewhat de- 
fensive about the agreement, given his 
high-profile opposition to expansion. 

just minutes earlier, and ‘ ‘we agreed that The issue is a rallying point for n&- 

jNATO was ready to take care of the tionalists and Communists, who have 

; security of Russia. ’ ’ Mr. Yeltsin said the advo ca ted « shar per rrsp o 11 ^ to NATO 
’alliance had agreed not to put military But the question appears to have little 

infrastructure and nuclear weapons in 
. die new member states. 

\ "If military forces are not deployed in 
j.the newly admitted members, this means 
£ ihar the agreement is bong exactly ful- 

resonance among the broader public. 

Still, Mr. Yeltsin seemed to go out of 
his way to pitch the pact as containing 
the best possible terms for Russia. 
While NATO had proposed calling 


Look Who’s Upbeat 

Continued from Page 1 

Hong Kong office, John McNrven. the 
Asia- Pacific managing director, also 
played down any danger. 

"I think that investors outside the 
region generally have very little under- 
standing of the region,’ ’ he said. ‘ ‘You’ll 
never come across a better-educated, 
harder-working bunch of blokes than 
you'll come across in China.” 

All that said, bankers and investors 
say there are risks because the "(me 
country, two systems” experiment has 
never been tried. But most seem to be 
placing their bets on the idea that 
Chinese leaders have no desire to kill the 
free-maricet system. 

Foreign financiers do expect corrup- 
tion to increase, but they say corruption 
is a problem in most of the developing 
world. If pressed, they acknowledge that 

-filled,” Mr. Yeltsin said. “Nuclear the agiy em ffn* a "charter” and Russia 
^weapons are not to be deployed, no wanted something stronger, both sides facilities are to be used, the in- agreed to call it a “founding act,” sim- 
ifrastructure abandoned by the Warsaw tiar to the 1975 Helsinki Final Act, a 

JfV Wf , ■+*(* 


China might be tempted to manipulate 
the flow of canital into and out of Hong] 

rPact is not to be used for this. This is 
■ exceptionally importanL” 
k Sergei Yastrzhembsky, Mr. Yeltsin's 
e spokesman, said Russia had succeeded 


wanted something stronger, both sides NATO’s Javier Solana Madariaga, 
agreed to call it a "founding act” sim- 
ilar to the 1975 Helsinki Final Act a react far more calmly to the situation 

Yuri KaAobnor/Agnttc Raw ft ew t 

NATO’s Javier Solana Madariaga, right, in Moscow with Yevgeni Primakov, the Russian foreign minister. 

human rights declaration. 

Questioned about future relations be- 
tween an enlarged NATO and Russia, 
Mr. Yeltsin was conciliatory. "We will 

than we did in the past” he said. 

■ United States Is Pleased 

The White House on Wednesday ap- 

plauded the news that NATO and Russia "We’re obviously very encouraged,” 
had agreed on the terms of a peaceful new die White House spokesman said. He 
relationship, and said it could result in the said tire prospective agreement was 
Paris signing ceremony this month, Rea- something that President Bill Clinton had 
rers reported from Washington. worked hard on “for quite some time.” 

BRITAIN: Blair & Co. Outline Ambitions Package of Changes 

Continued from Page 1 

in not having consulted with Most of the promises made Wednes- 

"Buddngham Palace to the congressional 
i Palace of Westminster in her horse- 
drawn state carriage while the air rang 

Commons before announcing earlier day came from the party’s platform, but 
this week that be was substilutingthe 15- one — introducing commercial pricing 

Twith cascading 
;■ orders. 

minute Tuesday and Thursday 
minister’s question time with one 

chimes and barked minute session every Wednesday. 

But Mr. Blair expressed pride in his 

for use of radio waves by mobile-phone 
operators — was lifted from the Tory 
manifesto. It is estimated to be worth 
$1.7 billion, an alluring figure to a new 

Listening to her in the House of Lords government's whirlwind start and said he government that is promising increased 

- were lawmakers, judges, churchmen, would not slow down. Speaking for the 

ambassadors and officials of the royal first time from the prime minister’s front- 

vbousehold in a panoply of wigs, tiaras, row seat, he said, "In 12 
rdiadems. ermine -lapeled robes, richly . shown how we can make a 

ebrocaded jackets and silk britches, 
a This year’s list of objectives was the 
-•longest in memory and will almost cer- 

He added, "We have started as we 
mean to goon.” 

Wednesday's speech codified into Ie- 

.•tainly all become law given the Par- gislative language the most dramatic 
- liament’s tradition of party-line voting move of the opening days, the decision 

/and the enormous majority, 179 seats in by Gordon Brown, 

. Speaking for the services without increased income taxes 
e minister’s front- or higher spending, 
n 12 days we’ve The major proposals for schools are to 

ike a difference.'' phase out a program that paid the private 
ive started as we school tuition of low income students 
and to steer the savings to reducing class 
ti codified into Ie- sizes of younger elementary school stu- 
e most dramatic dents to less than 30. 
lays, the decision On the proposed Parliament with tax- 
new chancellor of raising powers for Scotland and a less 

i.a 659-seat Parliament, that the Labour the Exchequer, to relinquish control over powerful assembly for Wales, the gov - 

a Party enjoys. 

the setting of short-term interest rates eminent promised to make proposals for 

Labour's victory on May 1 ended 18 and to turn it over to the Bank of Eng- the two bodies this summer and hold 

years of Conservative rule. In its first 
gtwo weeks in office, the party has shown 
- a level of discipline and energy that has 
sheen missing m British public life for 

In the Commons session that followed 


The other broad move by the new 

f ovemment, a signal to Europe that 
ritain was adopting a more neighborly 
posture to the Continent, appeared in 

the speech in 

sthe speech, John Major, the former plans to sign 

-prime minister who occupied the op- 
c position benches for the first time. 

viously announced eminent sail 
Social Protocol of minimum \ 

workplace rules and suggestions and to 
incorporate into British law the Euro- 

i, warned Mr. Blair not to use his great pean Convention on Human Rights, 
.-majority to steamroller the depleted op- permitting Britons to bring human 
position. rights cases in their own courts rather 

referendums in the two countries by the 

In a nod to the working classes and 
trade unions that once dominated the 
Labour Party’s membership, the gov- 
ernment said it would create a national 
minimum wage. Union leaders have 
been pressing for a base wage of $7 to $8 
an hour, but employers say that anything 
over $5 will end up costing jobs. The 

permitting Britons to bring human government said it would refer the mat- 
rights cases in their own courts rather ter to a new Low Pay Commission, 

Other Conservatives criticized Mr. than having to go to the European 

{■Blair for “triumphalism” and "arrog- tribunal in Strasbourg. 

thereby postponing a final decision for at 
least a year. 

■POVERTY: 17 Percent of EU Population Impoverished, Study Finds, More Than in U.S. 

Continued from Page 1 

E considered im 

ation is 

mpoverisbed, and highest in 
im less social protection. 

percent were classified as inactive. 

The study covered the 12 countries 
that were members of the EU in 1993, 
and defined the poor in national terms as 

of Americans did not have any health 
insurance that year. 

Until now, most EU studies and pro- 
grams have been aimed at measuring and 

0 countries with less social protection. 

1 Portugal had the highest rare of poverty, 
9 al 26 percent, followed by Britain and 
0 Greece at 22 percent 

The study also did not turn up any 

people having less than 50 percent of the reducing income gaps between ri 

Twenty percent of European children 
aged 16 or below lived in poor house- 
holds. Rates ranged from 5 percent in 
Denmark, 12 percent in France and 13 
percent in Germany to 24 percent in 

per capita income in each country. poor countries rather than measuring the Italy, 28 percent in Portugal and ahigh of 



threshold ranged from prevalence of poverty across Europe. 

be marks per person an- While an average of 17 percent of the 

32 percent in Britain. 

Poverty rates were highest for single- 
parent households (at 36 percent), the 

Dually in Germany ($8,840) to 510,960 population across the Union lived in 

direct link between poverty and unem- escudos a year in Portugal (a little under poor households, the percentages varied elderly (27 percent), and for families 

« » • .L - M AAA\ T - e * .1 L.. - .1 LlIJ 

. ployment, which is running at an av- 
”erage of nearly II percent across 

$3,000). Income figures Include cash 
government benefits, such as pension 

Europe. Fully one-third of the poor lived and child benefits, but not health in- 
n in households where at least one person surance, which is virtually universal. 

worked, indicating that the working poor The United States defines its poverty 

widely by country, with the wealthy 
North showing much less poverty than 
the South. Poverty rales ranged from 11 
percent in Germany, 13 percent in Bel- 
gium and the Netherlands and 14 percent 

with three or more children (23 percent). 
But again, there were stark disparities. 

While more than half of all single-parent 
households in Britain and Ireland qual- 
ified as poor, only 10 percent of large 
families lived in poverty in Denmark and 

are not just a U.S- phenomenon. Another line m absolute dollar terms: $7,763 a m France, to 20 percent in Italy arid 

third of the poor were retired, while 
13 percent were unemployed and 19 

year for an individual in 1995. The Spain, 22 percent m Greece and Britain 

Census Bureau estimated that 15 percent and 26 percent in Portugal. 

tamines lived in poverty in Denmark and 
France, countries that maintain generous 
family benefits. 

‘Amber Chamber’ Mosaic 
Is Unearthed in Germany 

Agence France- Presse 

POTSDAM, Germany — A 
piece of marble mosaic from the so- 
called Amber Chamber of Russia 
has been found in Germany, the 
police said Wednesday. 

The piece, 70 centimeters (27 
inches) by 55 centimeters, was 
found in Bremen and its authen- 
ticity confirmed by experts in Pots- 
dam and Sl Petersburg. 

The Amber Chamber, covered 
with amber and encrusted with pre- 
cious mosaics and gold, was a gift 
by the Prussian warrior-king 
Friedrich Wilhelm I to Russia's 
Peter the Great in 1717. 

SUMMIT:^ Wake- Up Call for India and Its Neighbors as Leaders Chart a New Course to Regional Prosperity 

Continued from Page 1 

have persisted since Britain, the region's 
principal colonial power, departed. 

One of the most powerful figures at 

the meeting, a top adviser to the prime 
minister of one of the largest countries 
represented, put it tins way as be 
emerged from the convention center m 
Male, die whitewashed capital of this 
nation of 1,200 coral islands set 300 
miles off the southwest tip of India: 

. "There’s been a mood of real self- 

He added: * ‘I think we’ve all realized, 
at last, »hat we simply cannot allow 
conflicts rooted in the past to stand in the 
way of progress for our peoples.” 

The meeting — formally, the ninth 
beads of government meeting of the 
South Asian Association for Regional 
Cooperation — will be remembered 
primarily for the extraordinary bonhomie 

here Monday between Prune Minister 
Inder Kumal Gujral of India and Prime 
Minister Nawaz Sharif of Pakista n . 

It was die first such meeting in eight 

in the 90-minuies of discussion trade, this is not all. Another figure cited 

Mr. Gujral and Mr. Sharif, vir- by Indian officials to demonstrate how 

tually everybody at the wider meeting, 
including the Indian and Pakistani lead- 
ers, said they believed there had been a 
turning-point In the key relationship in 
the region. 

How much cooperation India and 
Pakistan have managed in the past can be 
measured by a single figure, about $1 -5 
billion, representing the total official and 
unofficial trade between them last year. 

Some economic studies have sugges- 

much potential there is for wealth cre- 

— among ourselves." another top of- 
ficial, also an adviser to one of the prime 
ministers at the meeting, said after the 

ation within the region was that India's conference ended. "We’ve constructed 
trade with all the countries represented at all these barriers in our hearts and minds. 

the summit meeting — countries that are 
India's immediate neighbors, and that 
define most of India's borders — ac- 

and now. after 50 years, we’ve finally 
decided to start dismantling them.” 

At the session that concluded then- 

counts for less than 10 percent of all of talks Wednesday, the seven leaders an- 

India’s trade worldwide. 

The figures show that India does far 
more trade, by billions of dollars, with 
the United States than with all its im- 

^ ‘^ILrTseQM of ‘We can’t go years, and featured scenes of goodwill, ted that this trade could quickly leap to mediate neighbors. 

wifo botii nriiM ministers saving how $20 or $30 billion, qr more, if the two “The fact is that for 

nounced that they were moving up their 
; India does far target date for accomplishing free trade 
if dollars, with between their countries, to the year 2001 
vith all its im- from the earlier target year of 2005, 

They also announced that they would 
decades, while establish what they called an "eminent 

lilt novertv .InH norenne' •• I i 

most important investment opportunity 
that they had ever seen,” said Mr. 

“ And then each one of them would say , 
‘But what the hell do we invest in?' And 
1 got up at the end of that and said. Th my 
33 years as an investment banker, never 
have I witnessed an experience where 
demand exceeded supply by such a ex- 
traordinary amount, and I commit to you 
over the next four years that we will do 
everything we can to provide product.’ ” 
ti China also is doing what it can to 

‘ 'provide product,” and among the most 
sought-after investments these days are 
the ones that have tried to graft a bit of 
Hong Kong business savvy onto 
Chinese assets — so-called red chips, dft 

Red chips are China's efforts to break 
free from poorly managed state-run op- 
erations. Generally, red chips are 
companies controlled by Chinese min- 
istries. provinces or enterprises but 
based in Hong Kong. Often they use 
money raised on the Hong Kong ex- 
change to purchase mainland Chinese 
assets and then attempt to make the 
assets more profitable. 

Guangdong Investments, one of the 
older red chips, is visited weekly by fund 
managers, institutional investors and 
brokerage houses, its executive director, 
James Jinghua Cai. said. 

Mr. Cai gets high marks from in- 
vestor Fortrying to inject marketplace 
ideas into Chinese enterprises. After his 
finn invested in Shenzhen Brewery, beer 
prices were set by the marketplace in- 
stead of by bureaucrats. The company 
also finn hired Hong Kong property- 
management specialists to help run tts4 
residential properties. ~ 


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the flow of capital into and out of Hoog jp 
Kong or tamper with its low tax rate, but 
generally they reply that this is not a 
major worry for now. 

"What we all worry about the most is 
an unforeseen event that comes in the 
form of a mistake or an accident," said 
John Wadsworth Jr., chairman of Mor- 
gan Stanley Asia Ltd. "If it were severe, 
obviously it would have a devastating 
impact' ’ 

. Investors describe the unpredictable 
in such terms as the decision by tens of 
thousands of Chinese students to stage 
pro-democracy demonstrations.,. < in 
Beijing in 1989 and the government's 
subsequent bloody suppression of the 

After that happened, "the border was 
closed,” Mr. Wadsworth said. "J.C. 
Penney stock went down because their 
entire fall supply of shoes had to come 
across the border. But you just can’t 
spend a whole lot of time trying to pre- 
dict something like that." 

All the investment bankers inter- 
viewed said their companies were pour- 
ing more resources into Hong Kong, not 
taking resources out 

Even back in 1988, when Morgan 
Stanley & Co. opened its Hong Kong 
office, the company was big on Hong 
Kong because of its proximity to China, 
Mr. Wadsworth said. That was when 
Hong Kong had just a s mall regional 
stock exchange. 

But it was clear that China's growth A 
would spill over into Hong Kong, he^ 
said, and that has happened: More than 
four dozen China-related stocks have 
fueled the stock exchange’s growth. 

In 1993, the potential to make money 
by raising funds for Chinese enterprises 
was illustrated on an investor tour of 
China. At the final dinner, each par- 
ticipant was asked to give an assessment 
Every person at the meeting held “this 
extraordinary bullish view of the gov- 

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wealth for their peoples/ 


While little of substance was accom- But in terms of the paucity of regional could make immediate and tangible gains ation up to the year 2020. 

nies. Hotels, power plants, bridges, prop- 
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f **rot*. 


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When Appendicitis Is Suspected, It’s Wise to Act Quic 

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By Jane E. Brody 

Wgw> yor * Service 

YORK — Health writers 
orten wam readers about hi Ph 
rates of unnecessary surgery 
— — and caution *em to beware 
tSnfrtjj^ who are too quick to operate. 

31 ^ 006 circums tence in 
which surgery that turns out to be un- 

neOTedmay be more than justified. 

;■ wter preoperative tests stronelv 
^suggest that an inflamed appendix is the 
-cause of a patient's symptoms, die sur- 
• geon who operates without further delay 
Mfloes so m hope of preventing a far more 
serious complication: rupture of a eerm- 

Jfl? 1 ra^bng in a poten- 

tially Ere- threatening infection of the 
' e n t i re abdo minal cavity. 

Sometimes the surgeon is wrong, 
-^ome studies suggest that the appendix 
is perfectly normal in up to 30 percent of 
■‘operative cases, although the usual 

number is less than 10 percent. Mistakes 
can be made even with the most so- 
phisticated diagnostic tools. But as often 
as an appendix is removed unneces- 
sarily. the diagnosis is missed until the 
problem has become far more serious. 

And a mistake resulting in surgery for 
a healthy appendix may even be prefer- 
able to inaction because of delayed dia- 
gnosis. That was certainly the expe- 
rience of Marilyn Murray of Chatham, 
New Jersey, who arrived at her local 
hospital emergency room at 6 A.M. one 
day with abdominal pain so severe she 
found it difficult to talk. 

She had some classic signs of an 
infection: a slightly elevated level of 
white blood cells and a low-grade fever. 
But it took 30 hours before doctors 
decided that Ms. Murray probably had 
an infected appendix ana needed an 
emergency appendectomy. 

By that time, she said, she began to 
think she might die and told the doctor. 

‘ 'You have to do something, I am going 
downhill fast” 

After the surgery, she had to be given 
three antibiotics intravenously to 
counter the abdominal infection caused 
by her perforated appendix. Her recov- 
ery was greatly prolonged. An avid ex- 
erciser, she estimates that it will take 
three months before she is able to return 
fully to her usual activities of cycling 
and brisk walking. 

The appendix is, as its name implies, 
an appendage, a thin, worm-like pouch 
averaging 3 Vi inches in length and half 
an inch in diameter. It extends into the 
abdomen from the uppermost section of 
the large bowel, but has no known di- 
gestive role in people, although in some 
animals the appendix aids in processing 
plant mate rials that humans cannot di- 
gest. And while the appendix contains 
lymph tissue, suggesting that it was at 
some point in evolution a part of the 
immune system, it plays no known role 

in immune defenses. Thus, for all in- 
tents and purposes, the appendix Is a 
useless appendage that serves only to 
cause trouble in about 4 of every 1 .000 
children under 14 and in 1 in 15 adults. 

; is from 
: the most 

>n for performing abdom- 
inal surgery in children and adults. 

A ppendicitis results when 

a piece of food or hardened 
feces blocks the opening of 
the appendix and prevents it 
from draining into the boweL Some 
experts believe that the rise in appen- 
dicitis early in this century resulted from 
a decline in dietary fiber and consequent 
increase in constipation. The blocked 
appendix becomes filled with pus and 
bacteria, and the resulting infection 
causes abdominal pain that often starts 
in the upper-midale abdomen before 
subsiding and then moving to the low- 

er right side, where the appendix lies. 

As the pain of appendicitis, which is 
made worse by movement, intensifies, 
other symptoms often develop: loss of 
appetite, nansea and vomiting, constip- 
ation and fever. And when a doctor 
examines a patient with appendicitis, 
the lower right abdomen is often tender 
to the touch. 

The problem with diagnosis is that 
many other abdominal conditions can 
cause similar symptoms, including 
bowel diseases like diverticulitis ana 
Crohn's disease, a ruptured ovarian 
cyst, an infection of a fallopian tube ora 
ruptured ectopic pregnancy. 

Further complicating the diagnosis is 
the feet that a large minority of patients 
with appendicitis do not experience the 
classic symptoms. 

It’s important not to take a laxative 
when you have abdominal pain or other 
suggestive of appendicitis. It 
! cause an infected appendix to rup- 

ture. And do not Ignore ab- 
dominal cramps and tenderness _ 
that you cannot readily explain. This 
is especially important in children, 

who may be unable to describe the nature 
of their pain. When a child has more than 

a routine bellyache, and especially if the 
child vomits, has fever or lies with knees 
bent and is unwilling to straighten them, 
call the doctor without delay. 

Treatment of appendicitis is always 
surgical, although if there is widespread 
abdo minal infecting surgery may have 
to be delayed until antibiotics bnng fee 
infection under control. In uncomplic- 
ated cases, recovery is rapid. Patients 
return home within a few days md 
gradually resume normal activities 
within a few weeks. 

Since fee decline in complications and 
deaths Grom appendicitis that accompan- 
ied fee advent of antibiotics, there has 
been little or no further change, largely 
because of missed or delayed diagnoses. 

*a chad 

Who Lives 
In Dark 


Light Is Lethal 
r In Rare Disease 

By Monte Williams 

New York Tunes Service 

AGRANGE, New York — 
Caren and Dan Mahar thought 
about sending their 5-year-old 
daughter, Katie, to school once 
“a week this fall, but decided against it It 
pwould have meant her having to wear a 
J ’sleeping bag over her head while she 
. 'was being transported and finding a 
^gowindowless room where she could play 
' “and learn. 

~ A rare genetic disease, xeroderma 
pigmentosum, has made Katie a pris- 
*oner of light. The sun. even die slightest 
-bit, is ber enemy, causing severe bums, 
^blistering and, almo st inevitably, skin 
‘cancel r. 

' “Basically, the school nurse, prin c ip al 
?and special education teacher kept say- 
ing, Tt all depends on how much risk 
"you're willing to take,* ” Mrs. Mahar 
“recalled. “I thought about it, and I'm not 

- willing to take any risk: We’ve kept this 
"child in fee housefor two and ahalf years. 

* Being wife xxher children is important, 
'-hitt itotwoTfe risking her heahh. ’ • 

So for the foreseeable future, Katie 
;will get her lessons via video telephone 
at home, a yellow Colonial house wife 
“black shutters on a rural lane in this 
'suburb of Poughkeepsie. The special 
J phone is just one of many steps Katie and 
•Tier parents have taken to help ber cope 
whh xeroderma pigmentosum, or XP. 

~ ■ While some famili es can be des- 
troyed by the extraordinary demands of 
"such a condition, others, like fee Ma- 
hans, respond in ways that benefit their 
r -own child and fee handful of others 
? similarly afflicted, helping to mold 
^feem into a community. 

- The Mahars have started a summer 
-'camp where children play at night and 
-sleep in fee day. They began a support 

. group, now with 2,000 members world- 
-H 1 ' wide. And in a thoroughly modem re- 
sponse, they established a home page on 
•"fee World Wide Web (http:// 
J wwwljnhvjiet/kp%') full of research, 
the history of the disease and fee camp 

-• Patients with the disease have a de- 
'< feet in their DNA repair mechanism that 
■’leaves them unable to mend damage 
■'caused by ultraviolet rays. Both of 
Katie's parents carried the recessive 
' geoe far Che disease. 

Joyce DoftoeaTOc New Yak Ttaa 

Katie Makar peering out of her dark world, left; backyard play at night. 

Sufferers are 1,000 times more likely 
to develop skin cancer than nonsuf- 
ferers, said Dr. Kenneth Kraemer, a 
research dermatologist at the National 
Cancer Institute. Patients are also likely • • 
to get growths, cancerous and noncan- 
cerous, on their eyes. " 

About 20 to 30 percent of patients 
degenerate ne analogically, suffering 
mental retardation and losing the ability 
to bear, talk and walk. Those not pro- 
tected starting in early childhood usu- 
ally dp not live past their teens or 20s. 

In many ways. Katie, a smart, spirited 
child wife a full -moon face and big 
brown eyes, looks like any other 5-year- 
old. She fights with her older siblings, 
Teresa, Danny and Brendan. She counts 
past 30. She treats ber bed like a tram- 

IGHT now, she is trying to 
figure out where she fits in ber 
universe. Her mother says she 
asks, “How come I have XP, 
and you don’t and Daddy doesn’t and 
Brendan, Teresa and Danny don’t?” 

She wants to know ifher goldfish have 
XP since they do not go out either. 

‘ T tell her no, but maybe Santa Clans 
does, may be the tooth feiiy does, ” Mrs. 
Mahar said. “They only go out at night 
I’ve also told' ber everybody has 
something feat somebody else doesn’t 
have. It just makes them special Of 
course, she didn’t buy that for a 

Protecting Katie from ultraviolet rays 
takes thought and effort 

Even though she remains indoors, she 
is covered head to toe wife sunscreen in 
the- morning-. In the- afternoon, more 
sunscreen. • 

In fee summer, she is slathered with 
sunscreen six to eight times a day. The 
car windows are tinted. The house win- 
dows are also tinted, and shaded wife 
blinds and curtains. 

The family put garbage bags on the 
windows until a glass-tinting profes- 
sional donated the tinted windows. The 
doors and windows are always locked, 
so no one accidentally exposes Katie to 

Her pediatrician visits her at home. 
Though she goes out at night she is 
usually restricted to the backyard, 
where she swings or plays ball wife her 

Incandescent light bulbs do not affect 
her, but she is sensitive to halogen head- 
lights so she wears sunglasses when 
riding in the car. She is also sensitive to 
unshielded fluorescent lights, found in 
many stores and fast-food restaurants. 
The Mahars use light meters, also 
donated, to determine fee power of ul- 
traviolet rays in indoor places. 

“The other day, she asked me, ‘Why 
don't you take me to lunch at Mc- 
Donald’s?”' Mrs. Mahar recalled. 
4 ‘She knows that's not a possibility, so I 
figured she must have seen it cm a com- 



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p 4 Low blow? 


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over spn milk* 
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82 Baryshnikov's 
former co. 


JEM. 191 1, Baris 

‘Sank Boo Dae Noo* 

A Space for Thought. 

2S Magnon 

at Attach, as a 

aa Antwerp artisan 
SB Saw in the 
direction of the 

si Jackie’s second 

32 Game plan 
34 Pitching credit 
jaSaki story 

33 Thai 

(official name of 

38 Unskilled writer 

40 67- Across 

41 Stupidity 

43 Went 


44 Rhode's mom 
as Eskimo's 

4B Corrida cheer 

so deferens 

si Pitot's heading 

52 God whose 
symbol was two 
horses' heads 

53 Three on a 

ss Model 
ST Rod with a 

5 * DtetmgUshed 
«2 Concerning 
S3 A head of Tuna 
•4 A head of 

65 They make a 

SG Epitome of 
41 -Across 


1 Croup ot signs 

2 Instant 

3 Former Rhode 
Island Senator 

4 k won do 

SOne of the Four 

Forest Carsons 
• -relief 

7 Bodybuilder's 

randomness. In 

8 It's near 

io ‘Seven Samurai* 
ii 'Arcane 
12 Yankee's foe 
13 1986 Peter Aden 

17 DoCs best friend 
20 Brigs, e.g. 

23 Where the 
U.S.S. Cyclops 

34 Shocks 

as ‘Rambo* actor 
Richard and kin 
Z7 Flirtatious 

creator’s inits. 
as Bin 

35 Canyon feature 
35 Mike Hammer's 

37 Restyled 
39 33d Pres. 

41 Distracts 

42 Public to-do 

4B Fraternal twin, 
in chemistry 
57 Bdl Haley's 
48 Round- 

cruise company 
34 Outlet 

56 Wine region 

57 VamuSh 

56 - -pitch softball 

© New York Times/Ediled by Will Shorts. 

so' Formal wear, 
86 Cracker)ack 
61 Part of a royal 
flush . 

Solution to Puzzle of May 14 

Lb LIU 13 L4L1U11U 392“ 

HSES anaso gSSp! 

anaanamnsn saga 
ass atnan aanaan 
asoQaa nogaan 
EH30E3 asaaoga 

eeqq anagasagg 
maaBS □□□ QgHSfl 
□an aaaasa aaaa 

amciQiama agoa 
santuQS agaaga 
QQaaas aaaa sgg 
hdoq asaaaagaaa 
Qsaa Qaaoa SSHS 


Logging Spurs Gabon Chimp War 

By William K. Stevens 

New York TaiwSrma 

EW YORK — Logging of 
tropical forests in fee central 
African country of Gabon 
appears to have touched off a 
savage territorial war among chimpan- 
zees in which four of every five chimps 
die, says a field biologist for the Wildlife 
Conservation Society. 

Wife an estimated 50,000 chimpan- 
zees, Gabon has until lately accounted 
for a third to a half of a total African 
chimp population, estimated at 100,000 
to 150,000. But the chimpanzee wars 
have apparently reduced the Gabonese 
population to about 30,000, and it could 
ultimately fall to 10,000 if most of fee 
country is logged as now planned, fee 
biologist Dr. Lee White said. 

The fear is feat the central African 
subspecies of which the Gabon chimps 
are members might become en- 
dangered, as are two other subspecies in 
western and eastern Africa. The findings 
from Gabon are especially startling be- 
cause fee logging is selet&ve, intended 
to minimize damage to the habitat of 
chimpanzees and other animals. 

No more than 10 percent of fee trees 
in a given tract are cut. Dr. White said at 
a briefing last week in New York 
sponsored by fee society, which has its 
headquarters at fee Bronx Zoo. Nor is 
there any bunting in the area studied by 
Dr. White. And no other large animals 
like elephants or gorillas appear to have 

suffered. But chimps, fee animals most 
closely related to humans, are known to 
be highly jealous of territory, patrolling 
and defending borders constantly. Even 
without logging, violent clashes are 
known to erupt in which chimps kill 
each other with their bare hands and 
feeL In at least two documented cases, 
large communities of chimpanzees have 
systematically hunted down smaller 
ones and killed all members. 

What is happening in Gabon, Dr. 
White believes, is feat as mechanized 
logging operations advance on a con- 
tinuous front three to six miles (five to 
eight kilometers) wide, their approach 
frightens fee chimpanzees, which are 
not used to humans and have never 
encountered big, noisy machines. 

So they flee — right into the territory 
of fee next chimp community . When that 
happens. Dr. White said, “you’re es- 

WDr*”Tltemaies from fee 
mindly attar lc the interlopers, and many 
die. Then fee loggers keep coming. The 
invaded community itself is displaced 
onto the next community's teiritoiy. New 
warfare breaks out. Dr. White believes, 
“and this process goes on and on and on 
and on as fee loggers move through.” 

Dr. White said be and his African 
colleagues ‘ ’have a scientific reluctance 
to shout about this effect,” since they 
have not actually observed a chimpan- 
zee war in progress. Bin all signs point 
in that direction, he said. 

first, be said, it is clear on fee basis of 

sampling surveys of chimpanzee nests, 
scats and actual animals fa Gabon's 
2,000-square-mile (5 ,200-kilometer) 
Lope Reserve that the population of a 
given community falls by 80 percent 
just after fee Joggers go through. 

Second, Dr. White observed chimp 
behavior suggesting a war atmosphere. 
In one area where be was surveying the 
effects of logging, fee chimpanzees 
were extremely agitated, drumming on 
trees, calling to each other arid even 
rushing Dr. White. 

“On a number of occasions they 
mobbed me,” he said. “I had whole 
chimpanzee communities charging to 
about five meters and screaming at me, 
and feat’s very unusual behavior.” He 
interprets this as evidence of “a very 
stressed chimpanzee community, which 
is exactly what we would expect if this 
sort of chimpanzee war was going on.” 

W HY are gorillas not af- 
fected in fee same way? 
One reason may be that 
home ranges of gorilla 
groups commonly overlap and aggres- 
sion between groups is rare. Dr. White 
ami a colleague. Dr. Caroline Ttifin, 
make this point in a chapter prepared for 
a forthcoming book, “African Rain 
Forest Ecology and Conservation.” 
Also, they say, feat when conflict does 
occur fee mode is different Gorilla 
groups depend on a dominant male for 
protection rather than engaging in groap 



By Sherwin B. NuUmd. Illustrated. 395 
pages. $26J95. Alfred A. Knopf. 
Reviewed by 

Christopher Lehmann-Haupt 

D R. Sherwin B. Nuland, clinical pro- 
fessor of surgery at Yale University, 
is best known for his most recent book, 
the best-selling “How We Die.” His 
new book, “The Wisdom of fee Body,” 
could well have been rifled “How We 
Live.” Instead of bow fee body shuts 
down, Nuland writes of how fee body 
starts up, and how it keeps going and 
going and going, despite every obstacle. 

He writes here or cell structure and 
stomach aches, of appetite and ar- 
rhythmia, of lymphocytes and life itself. 
He explains, “Not alone the structure of 
us, but also the infinite variety of pro- 
cesses by which we maintain feat sin- 
gular constancy and unity of moznent- 
to-moment life, has inspired me to write 
this book — I want everyone to know 
what I have cone to know.” 

What Nuland has come to know can 
remind the reader of biology class : fee 
purpose of inflammation, tire two hemi- 
spheres of die cerebral cortex, the three 
layers of the embryo, the four chambers 
of die heart, the 11 qualities of living 
things (respiration, circulation, respon- 
siveness and so forth). 

What he lectures about can be won- 
derful: how “groups of enzymes are at 
all times moving along the many strands 
of DNA, patrolling them for damaged or 
abnormal areas, which they fix imme- 
diately on discovery.” Or bow capil- 
laries in the arterial system can be so 
narrow that blood cells move through 
them “single file,” sometimes even 
having to “bend just abitin order to get 

And his love of word origins is in- 
structive: “artery derives from a Greek 
word meaning ‘air duct.’ based on the 
ancient belief that these vessels contain 
not blood but an airlike essence called 

Carotid derives 'from the Greek ka- 
rotikos, or stupefying, “which is the 
effect resulting from squeezing tightly 
on those arteries.” 

He adds, “For obvious reasons, gar- 
rote has the same origin.” And sphinc- 
ter “originates wife the legendary 
Sphinx — the strangler of Greek myth- 
ology — who killed people by squeez- 
ing them into asphyxiation should they 
fail to solve her riddle.’ ’ 

But his lecturing can also be tedious, 
and could have asphyxiated his book 
were it not for a series of stirring an- 

In tire first and best of them, Nuland 
happens to be visiting a hospital emer- 
gency room when be hears a desperate 
page for “any general surgeon!” He 
dashes into the operating OR, sees a 
woman Dear death wife her stomach cut 
open, and proceeds to save her life by 
skillfully searching out and mending an 
aneurysm of her splenic artery. 

W HAT do these always engaging 
metrical tales have to do wife the 
point of Nuland’ s book? Not very much, 
except to illustrate what can go wrong 
with, say, the lymph system (a case of 
breast cancer). Or meiosis (“fee upside 
of Down” syndrome, as he puts it). Ora 
wom-out heart (the need for a trans- 
plant). Or when Nuland breaks his rule 
not to perform even minor surgery in his 
examining room and snips off a colonic 
polyp (dangerous hemorrhaging due to a 
rare blood-coagulation disorder). 

Why does he call his book “The 
Wisdom of die Body,” a tribute, he 
admits, to eariier lectures or books of the 

same name by Ernest Starling, one of the 

two co-discoverers ofbormones; Walter 
B. Cannon, a medical populizer who 
taught at Harvard, and Sir Diaries Sher- 
rington, Nobel laureate for bis studies of 
the ways in which die nervous system 
coordinates bodily functions? 

- Here the integument that binds this 
book into a coherent whole thins almost 
to the breaking point. From the outset, 
Nuland espouses a philosophy holding 

thai “we are greater than the sum of our 
biological parts.” 

He goes on, “No matter how similar 
our parts to those of other animals, there 
are to be found within them some char- 
acteristics feat make us uniquely hu- 

After describing at great length how 
human body parts work, he concludes: 
“It is my thesis that responsiveness to 
oar internal and externa] environments 
and adaptation of our pre-existing bio- 
logical equipment make us what we are. 
The human spirit is, I believe, fee gen- 
erated product of oar innate biology, 
encompassing fee molecular behavior 
of our cellular structure. Nothing more 
need be sought.” In short, fee body is 
wise enough to take care of itself. 

But where such philosophizing 
doesn’t lead him into murky incoher- 
ence, it prompts him to overstate the 
obvious: “Since fee members of oar 
species first became defined by our dis- 
tinct genetic characteristics, we have 
called upon those reserves in as-yet- 
incomprebe nsible ways in order to 
struggle against the looming threats feat 
are everywhere the constant accompani- 
ment to our existence on this planet.” 

Very soon, the reader grows impa- 
tient with his effmis to aggrandize his all 
too human material. For instance, after 
his breathtaking account of how he 
saved the life of Marge Hansen, the 
woman wife fee splenic aneurysm, he 
tells us winningly of the huge elation a 
doctor feels after pe rfor ming such a 
heroic intervention. 

But then he muddies fee effect by 
wordily intoning, “if there ever was a 
woman capable of responding to 
nature’s assault with the entire batteiy of 
mechanisms provided by that selfsame 
nature to maintain homeostasis in fee 
face of its own attempts to disrupt it, it 
was Marge Hansen.” 

Stop fudging, you want to shout back; 
the hero here was Sherwin B. Nuland! 

Christopher Lehmann-Haupt is on 
the staff of The New York Times. 

By Alan Truscott 

I N general, tournament 
players in North America 
win glory but not cash. 

An exception is die Cal- 
cutta event, in which entrant* 
are purchased before play be- 
gins, by themselves and oth- 
ers, perhaps other contest- 
ants. The money is then 
distributed according to fee 

The biggest is fee Cav- 
endish Pairs, in which many 
world-class players compete. 
A year ago fee pool was 
$900,000, and it is likely to be 
in seven figures this year. 
After 22 years in Manhattan, 
play is in Las Vegas. 

For many, the greatest 
pleasure that bridge can 
provide is to beat an “un- 
beatable” contract. An eleg- 
ant example is fee diagramed 
deal from a rubber bridge 

game, and tile hero in the East 

seat was Albert Silbex of 
Southfield, Michigan, long 
one of fee best players in the 

The North hand was typ- 
ical for an opening bid fol- 
lowed by a jump raise: 16 
high-card points and unbal- 
anced. A balanced hand 
would have opened one no- 

South had plenty in reserve 
to bid four spades, and that 
appears impregnable. 

After fee lead of the dia- 

mond queen. East knew the 
declarer had the diamond 

There was no future in the 
heart suit and ap pare n tly 
none for the defense. But 
when South won with fee dia- 
mond king and led a trump. 
Silber was ready. He put up 
his ace and led the club two. 
West took fee ace and re- 
turned fee suit 

South was now in jeop- 
ardy. It seemed feat the club 
two was a singleton, in which 
case playing dummy’s king 
wouldbefaiaLSo be finessed 
the jack, and was deflated 
when Silber produced the 
queen and gave his partner a 
club ruff to defeat the 
beatable” game. 



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THURSDAY, MAY 15, 1997 

Gets Help 
For Baht 

Singapore Intervenes 
As Markets Tumble 

-BANGKOK — Thailand 's economy 
look a beading Wednesday as share 
pqces plunged and the Bank of Thailand 
was forced to call on Singapore to help 
to.feod off speculators and support the 
Tljai currency, the baht. 

-Investors frantically nnl ^<f<?d stocks 
amid utwase over who was holding the 
■■pnomic reins of the country and ru- 
mens that the baht would be devalued. 

"Those fears were set off by concerted 
intervention on foreign-exchange mar- 
kets by the Bank of Thailand with the 
help of the Monetary Authority of 
Singapore to support the baht. 

'Still, the dollar rose to 26.097 baht, 
frbm 25.930, amid rumors that the cen- 
tral bank might resort to a devaluation, 
analysts said. The Stock Exchange of 
Thailand index dropped 4.8 percent, to 
571 JO points, its lowest level since 
December 3, 1991, when the index 
stood at 544.32 points. The marke t has 
fallen 31 percent this year, 
r The move by Singapore was the first 
tept : of a pledge by central bankers in tire 
region to safeguard each others’ cur- 

'.Thailand, hampered by dwindling ex- 
ports, a property-market crisis and a rap- 
idly slowing economy, has fended off 
criticism fra more than a year that its 
widening current-account deficit and 
mounting foreign debt would weaken die 

■After Mexico devalued its currency 
Jp* December 1994, the Bank of Thai- 
land and seven other central banks 
agreed to provide each other wifh emer- 
gency cash if any of their currencies 

«!mft muter aitarlr 

'“Foreign investors believe that tire 
baht will be devalued by 10 to 15 per- 
cent, and drey are selling everything 
because they want to convert then baht 
toidollar,” said Chalavibha Makchaidee, 
an analyst with Knmgthai Thanaltit 
; Adding to tire concern over Thailand 
is* doubt within the government over 
whether Finance Minister Amnuay 
Viravan should remain as Thailand’s 
top economic official 
:Such finger-painting will not help 
Mr. Amnuay convince investors that he 
can turn die economy around. 

, . (AFP, Bloomberg) 


Jets from five companies forming a star at Frankfurt Airport on Wednesday to symbolize the new alliance. 

United and Lufthansa Firm Up Pact 

By Barry James 

l JiuentatuMial Herald Tribune 

Five major airlines including Ger- 
many’s Lufthansa AG and United Air- 
lines of the United States announced 
Wednesday they were strengthening 
an existing sales and marketing pact 
under a single brand called Star Al- 

The agreement, announced by the 
five partners in Frankfort, is part of a 
global trend that has seen tire world 
airline market coalesce into half a 
dozen mega-alliances as they seek to 
cm costs and gain market share. 

The aim of the Star Alliance, said 
Juergen Weber, chairman of 
Lufthansa, is to improve efficiency for 
tire airlines and offer passengers a 
more seamless service. 

Tire airlines said they were not con- 
templating a merger, an exchange of 
equity or tire disappearance of then- 
own names or branded products. The 
other members are Scandinavian Air- 
lines System, Air Can ads and Thai 

The Brazilian carrier Varig also 
signed on as a member Wednesday, 
and Mr. Weber said he hoped South 
Africa Airways would join tn tire near 

The alliance could also bring in 
bilateral partnerships with other air- 

lines, such as Lufthansa's code-shar- 
ing deal with British Midland, with 
which it will begin operating joint 
flights between London and Cologne 
on May 26. 

Frederick Reid, the American-born 
president of Lufthansa, said recently 
that the airline was looking fra a part- 
nership with another Asian carrier. . 

The Star Alliance forms part of a 
global trend of airlines seeking to ex- 

wtdeh has recovered from a major 
financial setback, is dependent on its 
partnership with United Airlines for 
access to the American hinterland. In 
turn, the partnership enables United to 
circumvent tire shortage of slots and 
other facilities at European destina- 

There are about 400 alliances and 
code-sharing deals around tire world, 
according to industry figures, but most 
of the attention has focused on the 
megadeals such as tire one consol- 
idated Wednesday. 

The most controversial of tire al- 
liances is the one between American 
Airlines and British Airways, which 
faces possible antitrust action both in 
Europe and in the United States be- 
cause of its domination — more than 
70 percent of .flights between London 
and New York — of the British- Amer- 
ican market. 

The American Airlines president. 
Robert Crandall, who once called 
code-sharing deals “tire biggest con 
trick in history,” said Wednesday that 
tire birth of tire Star Alliance should 
remove any objections to his airline’s 
proposed link-up with British Air- 

He said tire Star Alliance repre- 
sented annual revenue of more than 
$42 billion, compared with S27 billion 
for tire proposed American Airlines- 
British Airways partnership. 

TheStar Alliance partners, who will 

mo ting their new brand, said they did 
not mi visage regulatory difficulties be- 
cause tire partnership did not involve 
sharing revenue or combining flights. 
Tire alTianre c alls for c ommon brand- 
ing in marketing and advertising, co- 
ordination of routes and code-sharing, 
and integration of ground operations. 
Passengers will be able to amass and 
redeem frequent-flyer benefits with 
any of die alliance partners. 

The five Star Alliance partners have 
more than 210,000 employees and 
flight ts to 578 cities in 1 06 countries. 

The five airlines forecast annual^ 
growth in passenger traffic of 5 per-" 
cent to 6 percent in coming years. 

Lufthansa said cargo shipments 
would grow by 6 percent to 7 per- 


Can Nordstrom Climb Out of Its Regional Holes? 

By Jennifer Steinhauer 

New York Tunes Service 

N EW YORK — Nordstrom 
Inc. is tire ultimate in cus- 
tomer service among main- 
stream American retailers; so 
why is tire company only now starting to 
■trawl out from under almost two years 
of dismal results? 

iThe specialty retailer, which has 83 
stores in 17 American states, boasts 
sales of roughly $400 a square foot, a 
number that others who work in retail, 
where die average is closer to $220 . 

reach only in tiiear dreams. Its sales ctcw 

njiore th an 8 percent last year, tn $4 J 
billion, and its stores openings in new 
areas npfoflin gJy draw big crowds, to 
the chagrin of competitors who have 
slagg ed it out an the same turf for years. 
Nordstrom's debt is puny by industry 
standards, and it has enough capital 
muscle to buy back its stock. 

■Yet Nordstrom’s earnings were 
shimmed quarter after quarter in thepast 
two years. The stares last year tern*- 
so bloated with women s clothing mar 
managers were forced to take major 
maikdowns. The holiday season was a 
dud. Customers moaned that the stores 
looked dull- .. . „ 

■Even retail analysts, trwbho^y^ 
tinnstic in their view of embattled Install 
stocks, threw up their hands. Maybe, 
tipy seethed, the company pampered 

Quarterly Earnings 
Aren’t Strong ... 

Change in net income Irom the similar 

financial years ending Jan. 31. . 

+200 •mm '*33533 

...Nor is the Stock 

1996 1996 

NOiuoutmi nock price 

i a w ft VfVaVj'j aToYd'j'fVaIi 

19971998 1996 1997 


customers too much. This week, Nord- 
strom's remits began to show improve- 
ment, largely because of a slower pace of 
store openings. Ota Monday, the com- 
pany announced that its first-quarter in- 
come was $323 million, a 25 percent 

increase frtan a year earlier. Its Stock rose 

on the news, to stand, at $44,625, up 623 
cents, in late Nasdaq trading. 

But the troubles facing Nordstr o m 
run deeper titan rare quarter’s results. 
Executives like to say Nordstrom is the 
hometown store in every market it 
enters, a claim supported by a regional 
buying str u ct ure that pets basic de- 
cisions about fashion mix and merchan- 
dising in the hands of local managers. 

But as the Seattle-based company has 
grown info a national chain, analysts say 
that its decentralized management has 
caused growing pains. 

While the system allows each store to 
fine-tune its purchases and largely avoid 
deep discounting, vendors complain 
that it has often resulted in myopiebay- 
ing that misses swift fashion changes. 
Further, because they are making smal- 
ler purchases, Nordstrom buyers cannot 
squeeze the kind of deals from their 
suppliers that other stores get 

Peter Nordstrom, a great-grandson of 
the founder and one of six family mem- 
bras who serve as the company’s co- 
presidents, said that executives believed 


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PAGE 13 

Telekom Shares Drop 
As Bonn Ponders Sale 

State Hunts Funds to Meet EMU Target 

By John Schmid 

International Herald Tribune 

FRANKFURT — The government 
said Wednesday it was considering 
holding an emergency sale of shares in 
Deutsche Telekom AG to raise money 
to reduce its budget deficit in time to 
join Europe's single currency. 

Unloading additional Telekom shares 
is one of several controversial options 
floated by government officials this 
week to plug growing budget holes. 
Bonn is expected to announce as soon as 
Thursday a spending freeze and new 
measures to cut the welfare budget. 

Other possible moves to qualify for 
monetary union . could include an in- 
crease in government borrowing, pre- 
viously a taboo subject in Chancellor 
Helmut Kohl's center-right coalition, as 
well as an increase in the petroleum tax, 
which would contradict the spirit of a~ 
separate government priority, to lower 
the nation’s tax burden. 

The surprise announcement of a pos- 
sible sale Of additional sham ; in 
Deutsche Telekom — three years earlier 
than planned — sparked a sell-off of 
Telekom shares as investors worried 
that tiie value of their stakes would be 
diluted. The shares closed down 93 
pfennig, at 39.20 Deutsche marks 
($23.07). One group of Telekom sh are- 
holders called the government’s pro- 
posal a ‘’breach of trust” 

The Telekom proposal, floated by 
Finance Minister Theo Waigel, could 
hardly have come at a worse Time for 
investors or the stock market, which was 
already expecting a flood of shares in tbe 
company to be sold off next week. In- 
vestors who bought shares in the com- 
pany ’ s huge andsuaxxsful initial public 
offer last November will be free be- 

ginning Monday to sell than without 
incurring hefty capital-gains taxes. 

Ron Sommer, tbe chairman of 
Deutsche Telekom, tried to downplay 
the uproar caused by Mr. Waigel 's an- 
nouncement. He said German law re- 
quired Bonn to seek approval from 
Telekom far a sale of shares that would 
affect tiie public share market before 
December 31, 1999. ‘‘We will ensure 
that the interests of tbe nearly 2 million 
shareholders are not affected,” Mr. 
Sommer said. 

The struggle to qualify for monetary 
union has carried steep political costs 
for Mr. Kohl’s coalition. Proposals to 
increase taxes could alienate the Free 
Democrats, the governing coalition’s 
anti-tax jumraparty. 

Wolfgang Grabffltit, chairman of the 
Free Democrats, said a tax increase 
“would be poison for the economy.” 

- The apparent confusion a mong gov- 
ernment ministers and party~leaders 
Wednesday indicated that Mr. Kohl’s 
govenmenHacked a dear strategy to 
come up with money to cut the gov- 
ernment's deficit to 3 percent of gross 
domestic product, one of toe European 
Union’s criteria for joining in the launch 
of the euro, analysts said. 

“The government is totally help- 
less,” sard Gerhard Grebe, an econ- 
omist with B ank Julius Baer. 

The government will need-to find a 
strategy quiddyrOn Thursday, apanel 
of government and central bank officials 
wiU finish a report with a projection fra 
this year’s shortfall in tax revenue. Op- 
position officials say 1997 taxes could be 
running as much as 20 billion DM below 

After the results of those tax delib- 
See SALE, Page 14 

Prosecutors Arrest Three 
In Nomura Payoff Affair 


By-Sheryl WuDohn banned Nomura from umterwriting and 

tfartort Times Service btdtong on new sales of government 

— bopd& Jt-afao may suspe nd No mura 

Prosecutors arrested one fromtrading on its jgngou .account or 

the retailer's troubleswere now behind 
it. “We are seeing things improve,” Mr. 
Nordstrom said, “which is why we 
made the changes to begin with.” 

Some industry experts have their 
doubts, however. 

“At one point, they were the most 
dynamic retailer around,” said Leisa 
Holland-Nelson, a principal of Apparel 
Resource Group, a consulting ftnn in 
New York. “Now, sales help at Saks 
and Neiman’s will walk you through tbe 
store, too. The competition has picked 
up on tbe things Nordstrom does wefl 
and at the same time has gotten to be 
better merchants.” 

All this has added up to a headache at 
(lie top. Nordstrom is a specialty store, 
after all, and smart buying and mer- 
chandising is how it distinguishes itself 
from mainstream department stores. It 
needs to buy some of its apparel from 
smaller vendors, edit the assortment 
from big vendors with flair and risk 
some wacky buys. 

The problem is, not every small 
vendor has the budget or the patience to 
zip around the rauntry trying to seduce a 
dozen Nordstrom buyers. “You can 
leave a tremendous business in their 
Chicago store, and you go to Southern 
California and the buyer mere says, ‘We 
won’t evrai try it,” ’ rare menswear sup- 
plier on the East Coast said. “It is food 

See STORE, Page 17 

EU Seeks 6 War, 9 
McDonnell Says 

CatpBtd by Ost SufProm DitpiSdta \ 

WASHINGTON — Tbe chairman of , 
McDonnell Douglas Corp. said Wed- ! 
nesday that a key official in the Euro- | 
peanUmon was seeking a trade war with 
the United States over the company's ; 
proposed takeover by Boeing Co. 1 

The chairman, Harry Stouecipher, was | 
referring to Karel van Mint, the EU 
competition cctnmisaoaer, who said that \ 
Boeing’s plan to buy McDonnell Douglas 
was unacceptable as it stood. “1 don't I 
want a war, Mr. Stooecipher said. 

Mr. van Mirat had no immediate com- ! 
meat He has dismissed as “noosensi- 
Cal similar rrt mTOPJirs attributed to Boe- 
ing executives in newspaper reports. 

Mr. Stonedpber said Mr. van Miext’s 
objections centered on a merger’s pos- 
sible impact on Airbus Industrie. 

“To hold the merger hostage is 
totally inappropriate,” he said. U.S. 
regulators will decide on the merger by 
mid-July, he said. The European Com- 
mission has said it will issue its decision 
by the end of July. (Bloomberg, AP) 

executive and two former managing di- 
rectors of Japan’s largest brokerage 
company Wednesday on charges of il- 
legally paying money to gangsters. 

The arrests came a day after tbe Se- 
curities and Exchange Surveillance 
Commission asked prosecutors to charge 
the three men, as well as the company, 
Nomura Securities Co. By askiqg for 
charges against tbe company, the com- 
mission is suggesting tbat toe individuals 
were not acting on their own. 

Nomura is being charged with com- 
pensating clients linked to criminal 

The company has seen its reputation 
erode quickly in tbe three months since 
the trading scandal was disclosed. Jap- 
anese and foreign clients have tempor- 
arily halted dealings with the company. 
On Wednesday, Japan's postal min- 
istry, which takes deposits from tens of 
millions of Japanese and is effectively 
the country's largest financial institu- 
tion, stud it would suspend tbe invest- 
ment of funds through Nomura. 

The finance Ministry oo Tuesday 

selling investments to institutional in- 
vestors for as long as three months. 

Nomura issued a somewhat contrite 
statemeraj^dnesday expressing “ot- 
mostregret ’ at the arrester 

Prosecutors suspect that the former 
managing directors, Sbdnpei Matsnki 
and Nobutaka Fujikuxa, both of whom 
resigned from Nomura’s board in 
March, illegally diverted about 49.7 
million yen ($415,900) in trading 
profits in 1995 to a company linked to 
Rytdchi Koike, a mobster who^Wack- 
xnails companies. 

Such mobsters, called sokoiya, often 
thr pg tn ) to disrupt companies’ annual 
shareholder meetings unless they are- 

S lid off. Osamu Fupta, the third 
otnura executive who was arrested, is 
raid to have been the direct contact 
bet w een tire company and the gang- 
ster's affiliate. 

AH three individuals face penalties 
ranging up to one year in raison or 1 
million yen in penalties. Nomura Se- 
curities could be fined 100 million yen 
under toe Securities and Exchange Law. 


The Corum Gold Coin Watch. An 
a uthen t i c $20 U.S. gold piece, first min- 
ted more than 100 years ago, is halved 
and an ultra-flat mechanical or quartz 
movement is cushioned Inside. Heralded 
as one of the world’s great timepieces, it 
is prized as an heirloom to be passed on 
from generation to generation. 

— /'^ : 


Maitres Artisans dTJorlogerie 


gprinforaarioo write to Corum.2301 la Qmnxt 

PAGE 14 



2d Rival Sues Intel on Pentium 

Echoing Digital Suit, Cyrix Says Its Patents Were Infringed 

Tame Inflation Data I 
Spark Wall Street Ralfy 



D J 

P M A M « 



CairHed by Our St&fiom Dbpmcha 

SANTA CLARA, California — 
Intel Corp.'s shares slipped Wed- 
nesday on news that die company 
was facing a second patent-in- 
fringement lawsuit, this one from 
the microprocessor maker Cyrix 

Intel's shares closed down 75 
cents at $151,625 as investors 

ing Digii 

e Pendum processors ns- 
rs Alpha chip technol- 

sbare for its Alpha chip. The suits 
came as Intel was recovering from 

ogy. Late Tuesday, Cyrix charged the discovery last week of a flaw in 
in a separate federal district court its top-of-the-line Pentium Q mi- 

lawsuit that Intel's Pentium. Pen- 
tium Pro and Pentium II chips in- 

croprocessors. That flaw was re- 
miniscent of a bug affecting corn- 

fringed cm its patents as well. Both potations found uz the - Pentium 

suits seek unspecified dams 
Analysts said the Digital 

meat suit was more important than processors. 

chips in 1994; the company spent 
$475 million then to replace faulty 

feared that the lawsuits could tar- Cyrix's because the first involved 

oish Intel's image and cost it as 
much as $20 milli on a year in legal 

“It is unbelievable what this is 
going to cost these companies,'' 
said an analyst for Cowen & Co., 

Drew Peck, who said the total cost it was reviewing both suits and 
could reach $200 milli on- “It will declined further comment. 

end up costing them more than any Cyrix makes microprocessors 
royalties that could have changed that compete with Inters Feodum 
bands." chips. It and Advanced Micro 

- Digital Equipment Carp, filed Devices Inc. are Intel’s major 
suit against Intel late Monday, competitors, while Digital Eqmp- 
charging that Intel had designed its ment has struggled to build maiket 

Cyrix's because the first involved Some legal specialists estimated 

more patents and better technol- it could be three or four years be- 
ogy. The market seemed to agree: fore the Intel cases went to trial. 
Intel's shares dropped more than In its last big legal case, Intel 
$6 Tuesday after the announce- fought Advanced Micro for seven 
ment of the Digital suit. years over patent-infringement 

Intel, based m Santa Clara, said claims by both companies. Anar 
it was reviewing both suits and lysts estimate that the two cornpa- 
deciined further comment nies each spent as much as $60 

Cyrix makes microprocessors million a year do those suits, which 
that compete with Intel's Pentium they settled in January 1995. Ana- 

chips. It and Advanced Micro lysts said that litigation had been 

Devices Inc. are Intel’s major particularly costly because it in- 

competitors, while Digital Equip- volved multiple suits and issues, 
meat has struggled to build market (Bloomberg, Reuters ) 

Source: Bloomberg. Reuters 

hnataHood Anld Tribune 

Very briefly: 

ING Drops Purchase of Dillon Read 

AMSTERDAM (Bloomberg) — Internationale Neder- 

Falling U.S. Prices Pull Dollar Back 

Co n p Or d by O'* Staff Fran Dispatches 

NEW YORK — The dollar fell 

concerns" that a rate increase migfrt 
not materialize to help lift the U.S. 

landen Groep NV withdrew Wednesday from talks to buy the 
75 percent of the investment bank Dillon Read & Co. it does 

against the yen and gave up most of currency, said Steve Jury, chief deal- francs, and 

up from 1.6940 DM; at 5.7070 
French francs, up from 5.7045 

□cs, up 
at 1.435. 

75 percent of the investment bank Dillon Read & Co. it does 
not already own. 

ING said two weeks ago that it was negotiating to buy 
Dillon Read as part of its strategy to increase its share of the 
$100 billion-a-year U.S. business of trading securities and 
advising in corporate mergers. ING said it expected Dillon 
Read's partners to exercise an option to repurchase the Dutch 
banking giant's 25 percent stake at the end of June. 

Texaco Vows to ‘Eradicate’ Racism 

RYE, New York (Bloomberg) — Texaco Inc. plans to 
“eradicate any racism" and improve its public image through a 
variety of programs to increase diversity among employees and 
suppliers, according to the company chairman. Peter Bijur. 

Mb-. Bijur said Tuesday at the annual shareholders meeting 
that the oil giant had created a diversity council, implemented 
management behavior standards and increased foe number of 
minority- or women-owued businesses with which it deals. 

its gains against European curren- 
cies Wednesday after economic 
data suggested that the Federal Re- 
serve Board might not need to raise 
U.S. interest rates. 

The Labor Department said pro- 
ducer prices fell 0.6 percent in April 
— foe lamest drop since August 
1993 — indicating that inflation was 
not a threat in foe U.S.- economy. 
The report bolstered the argument 
that Fed policymakers could leave 

er at Union Bank of Switzerland. 

But market sentiment over the 
likelihood that the Fed might tighten 

<5 Swiss francs. 


es this year remained divided. 

rates this year remained divided, 
traders said 

“Most people are comfortable sit- 
ting it out and trying to get a handle 

down from 1 .4395 francs. The pound 
rose to $1.6465 from $1.6325. 

The dollar was able to hold its 
gains against foe mark after a 
Bundesbank vice president, Johann 
Wilhelm Gaddum, said the planned 
single European currency, foe euro, 
would not necessarily be as stable as 
the German currency. He also said a 
durable fulfillment of the fiscal cri- 


NEW YORK — The steepest 
plunge in U.S. wholesale prices m 
nearly four years buoyed Wall Street 
on Wednesday as investors cheered 
another ri gn foat foe booming econ- 
omy was not igniting inflation. 

Prices paid to producers fell 0.6 
percent in April, dropping for four 
months in a row for the first time 
since 1993, foe Labor Department 

The inflati on news left in- 
vestors hoping Federal Reserve 
policymakers would not feel com- 
pelled to raise interest rates at their 
meeting Tuesday. 

“There is nojnflation now and 
little in foe pipeline," said Sung Won 
Sohn, chief economist at Norwest 
Corp. ‘The natural question is how 
long 'will this good luck continue." 

Stock prices rose, with the Dow 
Jones industrial average closing up 
1 1.95 points at 7,286. 1 6. The broad- 
er Standard & Poor's 500-share in- 
dex rose 2.92 points to 836.05, and 
gaming issues outnumbered losing 
ones by a 7-to-5 ratio on the New 
York Stock Exchange. 

The price of foe benchmark. 30- 
year Treasury bond rose 15/32 
point, to 96 24/32, taking foe yield 
down to 6.88 percent from 6.92 
percent Tuesday. 

“It's clear the economy is not 
overheating.” said Scott Colbert at 
Commerce Bank Investment Man- 
agement “This gives foe Fed an 

quarter of a percentage point i n $ "7 
March and is considering another 1 
shove -to keep the economy frqp 
racing out of ooatraL ,-r 

. L „civrmn»« 


be viewed as only temporary 

K Air r^i* : rra 

Mr. Sohn said falling prices qaay ...3-- ' etpero** 



. r *®r 

growth rate during. the first quarter ; r «. on 

of this year and unemployment afp 
23-year low of 4.9 percent — must 
be reined in to prevent inflation. r \ Csvfoe 

“The probability is high that®- . Jt T i 
flation will accelerate,” hie said, j pU 1 . 

But Marilyn Schaja, an econcf- * 

mis t at Donaldson, Lufkin & Jerj- 
rette Securities Corp., said declin- 
ing prices could just as easily meafi 

KUU. < f 

£?4 Abroad 

and ive 



the economy was headed for fa ^ iitff ' ‘i-cnr®* 
slower, more sustainable pace of '£ 3 
growth, meaning foe Fed woulji r. iJk 

hold off on further action. , ; ^ 

“I think that foe Fed can affordfp ^ ^ 

wait to see whether it’s part ofjft -gU o!i> r ‘”~ j, 
expected slowdown or whether.itis Rc'—' 
a temporary phenomenon,” Jdf 
Schaja said- ,1 V’ ■ 

The lessened threat of higher. iri- JT “V- F 
terest rates lifted bankine share! era ci ^ 

opportunity to take a pass." 

Much of the seasonally adjusted 
decrease in the producer price index 
— a barometer of price pressures 
before they reach the consumer — 
came from a 2.6 percent drop in 
energy costs. Wholesale food prices 
also fell last month, dropping 0.4 
percent after a big increase in 

Inflation also was benign outside 
the volatile food and energy sector, 
with the so-called core index de- 
clining 0.1 percent, helped out by 
declining prices for passenger cars, 
prescription drugs and computers. 

The positive market reaction was 
in sharp contrast to a month ago, 
when overall prices also were down 
but investors focused on a wor- 
risome 0.4 percent increase in foe 
core rate. 

On Thursday, foe Labor Depart- 
ment will release foe consumer price 
index, which tracks what shoppers 
pay for goods and services. It will be 
foe last economic clue Fed poli- 
cymakers get before their meeting 
Tbesday, and many analysts now 

on where the next move is,” stud teria required to launch the euro was 

David Gilmore of Foreign Exchange 

interest rates unchanged at their Analytics. At 4 P-M-, the dollar was 

meeting Tuesday. 

“The dollar is reflecting those 

at 117.26 yen, down from II 8.62 yen lute precision. 

more important than meeting foe 
numerical requirements with abso- 

Tuesday; at 1.6948 Deutsche marks. 

(Market News, Reuters) 

SALE: Bonn, Flailing for Funds, Looks to Telekom Shares 

• Wisconsin Energy Corp. and Northern States Power 
Co.'s merger plan was rejected by the Federal Energy Reg- 
ulatory Commission, which said the deal would concentrate 
too much of the Midwest’s electric-generating capacity. 

• Varig SA wants to renegotiate with Boeing Co. a 1 993 order 
for 20 jets that were never delivered after the Brazilian airline 
ran into financial trouble. 

• Berkshire Hathaway Inc-’s first-quarter earnings from 
operations rose 64 percent, to $263.1 million, buoyed by 
higher revenue from its Geico Corp. insurance unit. 

• General Motors Corp. and foe International Union of 

Electrical Workers reached a tentative settlement of a day- 
old strike at several key Ohio parts plants. Bloomberg 

Continued from Page 13 move this late in the year will not be chestrated sale of a 25 percent of the 

eratiocs are released, coalition lead- 
ers wili huddle to find consensus on 
deficit-cutting strategies. Mr. 
Waigel is expected to emphasize 
welfare cuts. Analysts consider this 
to be one of foe least realistic op- 
tions, given the government’s un- 
successful track record in budget 
cuts over the past six months. 

For months, Bonn has discussed a 

enough, said Gemot Nerb, econ- 
omist in Frankfurt for Salomon 
Brothers Inc. 

Because foe government still 
holds 75 percent orTelekom, foe sale 
of shares would be an easy way to 
temper more painful measures, such 
as tax increases or welfare cuts. 

Bonn still holds 2 billion shares of 
Telekom, a stake valued at nearly 80 

company, foe biggest share offering 
in European history. 

Mr. Waigel said it was “con- 
ceivable" that Bonn would sell ad- 
ditional shares ahead of schedule. 
“There would be no problem with 
foe sale,’ ’ he said, “considering foe 
company's magnificent situation." 

Thomas Mayer of Gol dman 
Sachs & Co. said Bonn was engaged 

spending freeze similar to a measure selling shares appeared hasty after 
implemented last year. But such a last November’s painstakingly or- 

b£Qion DM. But floating the idea of ' in a “high-wire act." 

selling shares appeared hasty after “There are plenty of opportuni- 

ties to fall from that wire." he said. 

expect foe CPI to be reassuring. 
The Fed raised interest rates a 

terest rates lifted banking share!, 
with JJP. Morgan rising 214 to 10414, 
NationsBank gaining to 6114 ‘arm 
Citicorp adding 2% to 12(M. * , 

Technology issues were mbped, 
with Micron Electronics falling 
2 3/16 to 16 7/16 after foe pereonaj- 
coraputer maker said its foiid-quartdr 
earnings would be hurt by raliinfe 
sales and overseas start-up costs, j 
But an initial public offering froth 
Rambus, which makes technology 
for speeding computer chips, was 
well received The company soM 
2.75 million shares at $12 qaqi 
Tuesday, and the shares closed dr 
$30,125 Wednesday. T 

Applied Materials rose 3.1/1$ 
63& after foe semicooductor-eqtiqj- 
ment maker reported better-thari 
expected earnings and told analysis 
they should raise their eanungstes- 
timates for the year. . .jy 

Ocwen Asset Investment roseafe 
to 1814 in foe first day of trading 
after the real estate investment trust 
sold 15 million shares at $16 each. 

Boston Scientific fell 4% to 49% 
on reports of negative commems 
made at an analysts' meeting. Eftit 
the company said no new injjpr- 
mation had been presented andjit 
was not aware of any reason ferine 
excessive drop in its shares. 

Kmart rose % to 14VS on ;c*|- 
pectations for foe retailer to post 
strong first-quarter profit 
Thursday. ... (AP, BloombeQ) 

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The top 300 most qcflve shores, 
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Tim Associated Press. 

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Paris Tightens Reins 

f)n State-Owned Fir: 

■>ri c* 1 *cd by Oe, SafF^m Ory^-, 

^*ARIS — - The government said 
Wednesday it was reorganizing the 
Treasury to try u> tighten control 
djfer state-owned companies, sev- 
jfiaJ of which have required massive 
wkmts at taxpayers' expense 
-^The reform win include privar- 
'Dfctions where possible and in- 
creased professional supervision for 
^tnpam^ that remain instate hands 
&L " including bringing in consultants 

Infrmch Car Sides 


Bloomberg News 

PARIS — French car and tire 
■rmakers repotted higher first- 
1 quarter sales Wednesday as 
]p growth from foreign activities 
•^'offset a slumping domestic 

Jjfr PSA Peugeot Citroen S A. ihe 
q^bountiy ’s largest carmaker, said 
3 '‘worldwide rales rose 0.6 per- 
-cent, while Renault, the No. 2, 
said global sales were up 3 per- 
“ cent The tire maker Compagnie 
5 t3enerale des Etablissements 
^dichelin SCA said sales rose 
q^.^perceot in the quarter. 

The reports came as Euro- 
ean Union figures showed 
4 rL firench car registrations were 

- £*lfae only ones in Western Europe 
■ "to decline in April. 

i 0:1 The prospect that the French 
car industry could weather do- 

1 ^tnestic weakness through over- 
> Tseas sales buoyed its stocks. But 

2 Jacques de Greling. an analyst 
1 the French teokerage Trans- 

I ^'bourse, said it was “a bit early 

I I to speak of recovery” in the car 
industry. French automakers 

c 1 .'predict the domestic market will 

- F'shiink 10 percent this year. 

i sr*. 


from die private sector — to prevent 
a repetition of the big losses run up 
by state companies in the past. 

Losses at Credit Lyonnais, 
Groupe des Assurances National es 
and the defense company Giai In- 
dustries SA have taken a heavy toll 
on the Treasury. For Credit Lyo- 
nnais alone, die bill is expected to 
come to more than 1 30 billion francs 
($22.7 billion). 

Losses at state companies “have 
caused indignation and bewilder- 
ment among French people,” fi- 
nance Minister Jean Aithuis said. 
“We must reform the way die state 
operates as a shareowner.” 

Under the new organization, to 
take effect immediately, people at 
the Treasury who regulate an in- 
dustry. such as banking, will be dif- 
ferent from those who represent die 
state on the boards of companies 
within that industry. 

In die previous system, the head 
of the department for monetary af- 
fairs at the Treasury traditionally sat 
on the board at Credit Lyonnais. 
Investigations showed, however, 
that that person carried little weight 
with the chairman of the hank. 

Mr. Arthuis denied that there was 
any connection between the decision 
to announce die reform and France's 
parliamentary elections planned for 
May 25 and June 1. 

He declined to not say whether 
the new system would dimipale 
political interference, ha the case of 
Credit Lyonnais, analysts said some 
dubious loans had been made with 
the Messing of members of die 
former Socialist government. 

Mr. Arthuis said heads of state- 
owned companies in the past had 
been too high-handed with the gov- 
ernment. “Several times I was 
asked at 10 PJrf. to approve im- 
portant decisions to be presented at a 
board meeting at 10 AAL the fol- 
lowing day.” he said. “Thar's un- 
acceptable.” (Bloomberg, Reuters) 

U.K. Joblessness Hits 7-Year Low 

But Labour Pledges Review to Give Figures More Credibility 


LONDON — Unemployment 
fell to its lowest level for almost 
seven years in April, according to 
official figures released Wednes- 
day, but the new Labour govern- 
ment announced plans to review 
the much-criticized figures to 
make them more credible. 

The Office for National Statist- 
ics said unemployment fell by 
59,400 last month, to 1.65 million, 
die lowest total since August 1 990, 
making the jobless rate 5.9 percent 
of tiie work force. 

Underlying average earnings 
grew by a slower-than -expected 4 5 
percent in the year to March, com- 
pared with a 5 percent rise in the 
year to February, suggesting a slight 
easing in inflationary pressures. 

Officials of the Labour Party, 
some of whom had derided the 

election this month, welcomed the 
fall in unemployment but said it 
was time the figures were over- 
hauled. That could be a risky 
move, as many economists say any 
serious review of the way unem- 
ployment is measured will prob- 
ably' show many more people out 

Other methods would 
probably show higher 

jobless data as “fantasy figures” 
before Labour won the British 

of work. “Credibility must be re- 
stored to the official unemploy- 
ment statistics.” Andrew Smith, 
the employment minister, said. 
"The public have suspected they 
have been the object of political 

Officials said they would con- 
sult economists, statisticians and 

the media about bow best to present 
the figures and hoped to make any 
changes by late summer. Unlike 
many other nations, Britain defines 
the unemployed as the number of 
people out of work and eligible to 
claim benefits. 

Many economists would like 
Britain to adopt the International 
Labor Organization definition of 
unemployment as the number out 
of work and looking for jobs. 

A recent independent study by 
Sheffield Hallam University cal- 
culated that real unemployment in 
January was more than double the 
official figure. Thai would have 
represented an unemployment rate 
of about 13 percent, roughly in line 
with rates in other major European 
countries. “We have been living 
with manipulated, distorted data 
for 15 years/.' John Shepperd, 
chief economist at Yamaichi In- 
ternational, said. 

Investor’s Europe 

Rankfnrt '-: 




3000 — -j* 

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; j 

• 4000 V— J 

2 rap 

- 4000 

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1996 1997 1996 1997,* 1996 1 

: Exchange - ‘ v sin£iax <: 

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Source: Telgkurs 

bitcnarfMaf Herald TWwac 

Berlin Bank Negotiates to Buy NordLB 

Very briefly: 


BERLIN — Bankgeseilschafr 
Berlin AG, a bank controlled by the 
city-state exf Berlin, said Wednesday 
it had begun talks to acquire Nord- 
deutsche Landesbank Girozentrale, 
amove that could lead to the creation 
of Germany's second-largest bank. 

Together, the banks had assets of 
about 567 billion Deutsche marks 
($334 billion) at the end of 1996, 
slightly more than Dresdner Bank 
Au, Germany’s second-largest 
bank. Bankgesellschaft after the ac- 
quisition would be about two-thirds 
the size of Deutsche Bank AG, the 
bank in Europe. 
ie hanks did not disclose prices 
or other details, buz they hope to 

combine by the end of the year, 
Constanze Srempel, a Bankgesell- 
schaft spokeswoman, said. 

The banks said NordLB, which is 
owned by the stares of Lower Sax- 
ony, Meddenburg- Western Pomer- 
ania and Saxony-Anhait, would re- 
main an independent bank within 
Bankgesellschaft Berlin, which is 
57 percent owned by the Berlin gov- 
ernment The investment banking 
and international businesses of the 
two banks would be merged. 

Shares in the new bank will be held 
by both public and private owners. 

Shares owned by the public sector 

will be held equally by Berlin and by 
NordLB 's current shareholders, and 
tire two will have an equal number of 

seats on the new banks’ supervisory 
board, tire companies said. 

Bankgesellschaft Berlin was cre- 
ated in 1994 by the merger of three 
state banks: Berliner Bank AG, 
Landesbank Berlin Girozentrale and 
Berliner Hypotheken- & Pfandbrief 
Bank AG. 

Analysts said they were surprised 
by the speed of the negotiations be- 
tween the two banks. 

“Before, 1 thought the banks 
were not interested in a merger,” 
said Dieter Hein, a banking analyst 
with BHF-Bank AG. “The public- 
sector banks are not particularly dy- 
namic, so it is not as positive as a 
merger in the private sector.” 

( Bloomberg . AFX) 

• Cable & Wireless PLC, Britain's second-largest tele- 
communications company, said its annual pretax profit after 
exceptional items jumped 12 percent, to a record £2. 42 billion 
($2.31 billion). 

• British Telecommunications PLC's purchase of MCI 
Communications Corp. was approved by the European 
Commission after BT agreed to provide circuits for rival 
operators on its cables between Britain and America. 

• Novo Nordisk AS, a Danish pharmaceutical company, said 
first-quarter pretax profit rose less than 1 percent from a year 
earlier, to 560 million kroner ($86.2 million). 

• Imperial Tobacco PLC, in its first financial results since it 
was spun off from Hanson PLC in October, repotted profit 
before tax of £143 million, inline with expectations, for the six 
months that ended March 29. 

• Adam Opel AG, a unit of General Motors Corp., and 
Valmet Oy Automotive of Finland plan to build a car in 
Russia by the end of 1998 in a venture with AvtoVAZ. 

• Mannesmann AG will take a 15 percent stake in tele- 
communications company Cegetel SA. Reuters. Bloomberg, AFX 



Hi# Law Close Prtv. 



'Wednesday, May 14 

Prices hi tacol amende. SAPpu 

TdekUfS Sdiettog 

High Law Close Pnv. SGLCorbon 


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39 J9 3928 3929 3R79 
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3480 2381 2320 2420 


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P iwHo ue 253430 























The Trfb Index 


Jan. 1. 1932-100. 

World Index 
Regional Indent 

N. America 
S. America 
InduabW indrana 
Capital goods 
Consumer goods 
Raw Materials 




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. -0.03 







T)w ktiafwitonal Herald Tribune World Slock Index O tracks thoUS-doBor values of 
booklet iaavatabta by writing to Tha Trib tndax.lB1 AvanuaCnaHea da Gauta, 

03521 Notary Cedes. Franca. Compiled by Bloomberg Nows. 

t WNW 



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1925 1875 IPS IMS 

1525 J 500 1525 1525 


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6650 6480 6600 6490 

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Market Closed 

Seoul was closed Wednes- 
day for a holiday. 

News Crap 
Pacfflc Dunlap 
St George Bank 










































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Hong Kong Dollar’s Champion 

Central Banker Says He Can and Will Stand Up to Beijing 

PAGE 17 

Investor’s Asia 

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- LANDING IN CHINA — AJan Greenspan arriving 
.Wednesday m Beijing, where he was welcomed by Deputy 
r Governor Yin Jieyan of the People’s Bank of China. The 
.■■chairman of the U.S. Federal Reserve Board will spend three 
*^days in China and meet with top finance and banking officials. 

By Sandra Sugawara 

Washington Pqjj Service 

HONG KONG — For the fi- 
nancial world, Joseph Yam is per- 
haps the' most critical symbol of 
China's “one country, two sys- 
tems” promise. 

Mr. Yam is c hairman of the 
Hong Kong Monetary Authority, 
the British colony’s central bank. 
After China resumes sovereignty 
July 1, it will be his job to tnainrain 
the independence of the Hong 
Kong dollar from China's cur- 
rency, the yuan, keep the cash- 
hungry Chinese government from 
plundering Hong Kong’s abundant 
reserves and prevent an attack on 
the Hong Kong dollar. 

Mr. Yam says he is confident that 
Hong Kong, with a vibrant econ- 
omy, no deficit, no debt and more 
than $60 billion in hard-currency 
reserves, can protect its currency 
from panics within Hong Kong co- 
attacks from outside. So far, his 
performance in managing the cur- 
rency has won widespread praise 
from the financial community. 

As for keeping Beijing at bay. 
Mr. Yam points out that the Baric 
Law, which governs China’s ac- 

tions in Hong Kcmg until 2047. and 
a subsequent policy statement stip- 
ulate that the two monetary systems 
will remain independent of one an- 
other for SO years. 

“So, for instance, if China were 

in our policy for the management of 
the reserves,’ ’’ Mr. Yam said. 

He added that he would tell 
Chinese officials: '“You’re not a 
freely convertible currency, and 
your credit rating is not up to the 
standard that^ we accept, so rm afraid 
I just can't do it. And they can't 
actually force me to do it, because I 
publish our figures frequently. 

Sin-ming Shaw, a Hong Kong- 
based fund manager, calls such talk 
self-delusional, u nlike most exec- 
utives heze, Mr. Shaw says Beijing 
will be more aggressive in managing 
Hong Kong’s economy. He also 
says that would be a good thing. 

“I don’t know any sovereign 
country that would tolerate for long 
a system of one country and two 
currencies, with two central banks 
and two monetary policies, with 
one policy effectively set in Wash- 
ington,” he said Because the Hong 

Kong dollar is pegged to a rate of 
around 7.7S to the U.S. dollar, 
Hong Kong’s monetary policy is 
basically determined by the United 
States, with key interest rates based 
on the state of the U.S. economy, 
not that of Hong Kong or China. 

“For the foreseeable future, I 

thiflk Ffrina inw»nrf!> to maintain ‘’one 

country, two systems,’ ” Mr. Shaw 
said. But overtime, he said, Beijing 
wffl put more emphasis on the “one 
country’ ’ part of the equation. 

■ Finance Chief to Rnn Fond 

Tung Chee-hwa, the chief ex- 
ecutive-m-waiting of Hong Kong, 
named the territory’s top financial 
official to manage the SIS billion 
Land Fund as of July 1 , Bloomberg 
News reported 

The official, Hong Kong’s fi- 
nancial secretary Donald Tsang, 
said he would not change the in- 
vestment strategy of the fund, 
which will be incorporated into 
Hong Kong's fiscal reserves but 
managed separately from its for- 
eign-exchange reserves. 

Including the Land Fund, the 
government being set up by Beijing 
in the territory will have more than 
$77 billion in reserves. 






VMC » . 

fcT— j 


Japan Failure Hits North Korea 

Carried by Otr SKf Fnm Doporha 

£ OSAKA, Japan — North Korea 
Offered an indirect economic blow 
Wednesday when Japan ordered the 
ziQerger of five credit unions run by 
dthznc Koreans from the North so 
piey could bail oat a sixth thrift with 
rihular ties. 

:* Regulators will merge credit co- 
operatives in Wakayama, Nara, 
Shiga, Hyogo and Kyoto prefec- 
tures into one institution to absorb 
Vfe ailing Cbogin Osaka Credit Co- 
operative. The newly formed Cho- 
gin Kinki Credit Cooperative will 
have total deposits of 943 billion 
yen ($7.89 billion), 
j* Unrecoverable loans at Chogin 
Osaka, which like the other five 
credit unions is run by North Korean 
residents in Japan, are estimated at 
200 billion yen, based on die Osaka 
prefectural government’s financial 

v Executives of Osaka Chogin will 
resign to take responsibility for the 
ffirift’s troubles, according to the 

Osaka government. The thrift failed 
to meet a demand made by the Osaka 
government March 14 that it draw 
up a plan to improve its position. 

Although there is no direct link 
between the failed credit union and 
North Korea, ethnic Koreans in Ja- 
pan are believed to be (he largest 
source of hard currency for the Sta- 
linist state, which is on the brink of 
famine after two years of devast- 
ating floods and decades of eco- 
nomic decline. 

According to South Korean es- 
timates, die North Korean economy 
shrank for the seventh consecutive 
year in 1996. 

The credit union's failure was 
blamed mainly on problem loans 
dial ballooned after Japan’s asset 
bubble burst in 1990. 

Supporters of North Korea, es- 
timated at about one-third of Japan’s 
666,000 ethnic Koreans, are be- 
lieved to funnel their assistance to 
the North through the General As- 
sociation of Korean Residents to 

Japan, Pyongyang's de facto em- 

Signs emerged last year that one 
key source of North Korean funding 
— from die pachinko business — 
was drying up as mainstream Jap- 
anese companies muscled in on 
what was once a preserve of ethnic 
minorities. Pachinko is a pmbaU- 
like gambling game. 

The North Korean community's 
pachinko interests generate a subsidy 
to Pyongyang of about $550 million 
a year, Japan's Public Security In- 
vestigation Agency has estimated. 

The pachinko money constitutes 
a significant portion of the $1.8 bil- 
lion to $2 billion that Japanese and 
Western intelligence officials esti- 
mate that Korean residents in Japan 
remit to Pyongyang annually. 

Analysts say subsidies from 
Koreans in Japan who are friendly to 
die North are probably die Pyong- 
yang government’s largest foreign- 
exchange source. 

(Reuters, Bloomberg) 

Air-India Ponders Planes 

Airbus and Boeing Chase Potential $2 Billion Order 

Agenee France-Prtsse 

NEW DELHI — Air-India di- 
rectors will meet Thursday to 
choose between Airbus Industrie 
and Boeing Co. in its ambitious $2 
billion fleet-expansion plan, exec- 
utives said Wednesday. 

McDonnell Douglas Coop, of the 
United Stales is also in the race to 
sell 23 medium-capacity, long- 
range planes to Air-India, but ex- 
perts say (he real competition is be- 
tween Boeing and Airbus. 

An Air-India spokesman said any 
decision made at the meeting here 
would be announced at a news con- 

Airbus is trying to sell its latest 
A340s, while Boeing has offered its 
777 model. Air-India has a total fleet 
of 31 planes, 11 of them Airbuses, 
and wants the 23 new planes de- 
livered by 2013. 

Boeing initially said its 777 was 
larger than its rival and its operating 

cost was 10 percent lower than the 
A340&, while the European consor- 
tium said its aircraft had longer 

“They are evenly balanced and 
well matched,” a top Air-India ex- 
ecutive said of tire race between the 
two plane manufacturers. 

Industry specialists say Air-India 
has been advised to float a $285 
million public issue to help finance 
its project, but both Boeing and Air- 
bus are reported to have offered to 
finance as much as 85 percent of the 
cost of their planes. 

India’s aviation minister, CM. 
Ibrahim, this month promised “total 
transparency” in handing out the 
Air-India contract 

The Air-India board has been told 
to prepare a seven-year program to 
improve the financial health of the 
national carrier, which lost $66 mil- 
lion in 1996 and is expected to lose 
$70 million this year. 

Very briefly 

• Sony Corp. confirmed H would join Fuji Television Network 
Itkx, Softbank Corp. and News Corp. to become equal partners 
in tire Japan Sky Broadcasting Corp. satellite-TV venture. Tbe 
venture plans to offer 150 channels beginning next April 

• Japan ’s current account surplus shrank 1 7 percent in March 
from a year earlier, to 1 .03 trillion yen ($8.7 billion). 

• Japan Paper Industry Co. and Jnjo Paper Board Co. will 
merge to form Japan Paperboard Industries Co. 

• Chiwan Wharf Holdings Co. of China and Hong Kong- 
based American Consolidation Services Ltd. formed a 
venture with Shenzhen Sungang Warehouse Holdings Co. 
to build a $27 milli on cargo warehouse in Shenzhen. 

• Revlon Inc. of tbe United States, opening a plant in Shang- 
hai, its first factory in China, said it planned to sell its lipstick, 
skin cream and perfume in 1,000 stores in China by 2001. Its 
products are sold in 150 outlets in C hina now. 

■ China reported 18,181 industrial accidents in 1996. down 
13 J percent from 1995, tbe Labor Ministry said. A total of 
17,231 people died in the accidents. AP. Reuters. Bloomberg Nan 

Exports Propel China’s Surplus 


BEIJING — China reported a trade surplus Wednesday for 
tire first four months of 1997 of $103 billion, wiping out a 
year-earlierdeficitof $700 million with a surge in exports and 
a weakening of imports. 

Exports jumped 26.9 percent, to $503 billion, while imports 
fell 0.5 percent, to $40 billion, tire China Daily reported. Total 
trade gained 13 percent, to $903 billion, it said, and Japan. Hong 
Kong and tire United States remained the top trading partners. 

Tbe surplus is likely to aggravate tensions over Chinese 
trade policies. The United States and European Union want 
Beijing to open its markets as a condition for joining the^ World 
Trade Organization. (AP, Bloomberg) 

STOKE: Can Nordstrom Climb Out of All Its (Regional) Holes? 

Continued from Page 13 or sportswear categories, tire but that may also limit your was back-ordered. 

to get them to go for new 
ideas, and they are slow, 
vvhich is bad because fashion 
is. a fast-changing business. 
You have to be quick to get on 

‘■‘ Even designers who ad- 
fnire the company’s regional 
buying talent are often 
puzzled. “You have to won- 
der why, for example, Dallas 
is not buying linen at a certain 
time of year but Oregon is,” 
Said David Dan. president of 
xMs own fashion company in 
tRjs Angeles. “It doesn’t 
make sense.” 

’.‘Mr. Nordstrom said that 
tine of tbe tasks needed to 
freshen the stores had con- 
tributed to last year’s earn- 
ings troubles. The company 
suddenly decided to shuffle 
jironren’s clothing around- It 
was an attempt to sharpen the 
. look of departments arranged 
% the presumed lifestyle of 
Shoppers — not by price, as ip 
qiost department stores. But it 
Sprang on sales clerics die un- 
Wdcome task of peddling 
merchandise they knew noth' 

-?:A visit this week to me 
Sfore at the Westchester Mall 
§s White Plains, New York, 
Ifcft, an infrequent Nordstrom 
Stopper with tire sens e that 
isily those in tbe Nordstrom 
know could figure out exactly 
ftobere to find tbetr favorite 
jfesigners. Rather than career 

or sportswear categories, tire 
women’s clothing depart- 
ments are called things like 
“savvy” or “individualist”; 
youthful vendors like Blue 
Fish are mixed in with more 
established designers like 
Eileen Fisher. 

Even devoted Nordstrom 
shoppers can be flummoxed. 
“Their fashion and service 
are exactly to my liking,” 
said Ann Hagroann, a lawyer 
from Greenwich, Connectic- 
ut, who was enrising die store. 
“But I do like the layout and 
the presentation of the de- 
signers better at Neiman’s.” 

Regional buyers, mean- 
while, have missed out cm 
fads that swept the country 
with such force that regional 
tastes were irrelevant. 
“When you are buying for 
Utah, you live and breathe it, 
and you see what is selling. 

Protect Your Personal Assets 
^iwpciMinanytt^ .Mua no 
Delaware, Nevada 4 Wyoming 
■ LICs fUnmied UaWty Convenes! 
Corporate Agents, Inc. 

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CanpuSwv e- GO » NC 



but that may also limit your 
focus,” said Paula Schneider, 
sales manager for BGBG, a 
women’s clothing company. 

For example, most of 
Nonflstrom’s buyers missed a 
rollout by Polo Ralph Lauren 
of a new line of casual 
sportswear. “Buyers were 
waiting around for someone 
to tell them to go for it,” Mr. 
Nordstrom said, “so it fell 
through tire cracks.” 

Or consider Beanie Babies, 
the vexing little dolls that no 
store can seem to get enough 
of. A buyer for Nordstrom m 
Chicago, where the toys bad 
their deb ut , caught on to the 
trend early, but by tire time tire 
rest of the regional buyers de- 
cided they, too wanted the 
beanbags, the manufacturer 

was back-ordered. 

Likewise, Nordstrom was 
cangfrt short at the height of 
the craze for Nike sports m>- 
parel last year — probably, 
Mr. Nordstrom said, because 
Nike was either confounded 
or overwhelmed by tbe flurry 
of orders it was getting from 
various Nordstrom buyers. 

That episode, he said, un- 
derscored the weaknesses in 
tire company’s decentraliza- 
tion strategy. While he has no 
intention of abandoning it, 
Mir. Nordstrom suggested that 
it could be modified. 

‘’There are situations that 
warrant us doing whatever we 
cah to get product to tire cus- 
tomer, he said. “If it takes 
tis writing one order to get 
better shipping, we’ll do it.” 

t§FOS TheCrans 

■ IkVI Montana Forum 

: ISM-I -. Switzerland - VUI yearly meeting 
1997, JUNE 26 to 29 

: thf Reconstruction of Beirut and Lebanon 


* meeting at ^ JfTSrfriPrime Ministenof Lebanon and 
: around Mr Rafik Al-Harin, From {^eg related to the 
; top Ministers of ^ 

. reconstruction of foreign invest- 

i a> °P e - rati ° n ri ^" ^n^ WrSS®,^' financing, air- 
r. merit, incentives, energy banking etc 

. ports, telecom, tourism, transpo Fonim with a stricr- 

TheCtans Montana Jy meet governrnen- 

■ lY Bmfted access deSston makers from all 

■ BesidesiteBaditionalpartaP^ and the Sou* 

I, Central and Eastern nDie s represenred- 

, Mediterranean - mo* ^i eye l delegationsfiom 

the 1907 Forum welcomes Morocco, Sou* 

Belarus, Egypt, ^onra.ld« ontraIB p 0 rtS 

rASica Turkey, and Caucasus States 
j» supply of energy)- 


SocSAtS Anonym* 

Registered Office: Luxembourg - 2, Boulevard Royal 
R.CL Luxembourg B-6734 

Our Shareholders are invited to attend on 
Wednesday, June 4, 1997 at 11.00 a.m. fri Luxembourg 
at 69, route d'Esch, the 

Annual Shareholders' General Meeting 

with the following agenda: 

1. Directors' Reports. 

2. Auditors 1 Reports. 

3. Approval of the Consolidated and Parent Only Financial 
Statements for the year ended December 31, 1996. 

4. Appropriation of 1996 net Income of the parent 

5. Discharge of Directors and Auditors. 

6. Directors' and Auditors' fees for 1996._ 

7. Section of the members of the Board of Directors 

8. Authorization to the Board of Directors to repurchase 
Company's shares. 

In order to be able to attend the ordinary general meeting, 
holders of bearer shares will have to deposit their bearer 
shares five dear days before the date of the meeting at the 
Registered Office of the company or with one of the following 

- in Luxembourg: Banque Internationale & Luxembourg; 

- in Italy: All the leading banks; 

- in Switzerland: Cr6dlt Suisse, Banca Commercials ftaliana; 

- tn France: Lazard Fr&rets & Cle.; 

- in the Federal Republic of Germany: Commerzbank; 

- In Great Britain: SBG Warburg, Lazard Brothers and Co.; 

- in the Netherlands: ABN-AMRO Bank; 

- In Belgium: Banque Bruxelles Lambert 

Every shareholder may be represented at the shareholders 1 
meetings by a proxy, who need not himself (herself) be a 

Shareholders may, on and after May 26, 1997, inspect at 
Banque Internationale h Luxembourg, 69 route d'Esch, the 
reports of the Board of Directors, the annual financial 
statements and the text of the proposed resolutions. 


/ \ two-month 



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M::;:sL- il 

A Special Report 

THURSDAY, MAY 15, 1997 
PAGE 19 


Savvy Young Investors 
Y'SSz P™ n g Changes to Asia 

Remands for New Services Challenge Old Ways 

Private Banking 

By Philip Segal 

*“**®J e *e waiting rooms ax 
Hpng Kong s private banks been as 
empty as they are these days. 
y*ot lhat business is slow, just highly 
•■pipetitive. As private banking mar- 
gins shrink, bankers now tend to come 
yon, often after making a cold call or 
njpsdy string a rip from an existing 
<±enL The days of waiting for mil- 
lionaires to step up and ring the bank's 
doorbell are over. 

£What is not new is the potential for 
ppvate bankers in the region, which is 
the reason so many are flocking to offer 
services in Asia. “By 2000, Asia will be 
t£e largest private banking market in the 
world,” predicted Tim Hildebrandt. 
managing director of the managment 
consultancy Bain & Co. (Hong Kong). 
*Of the 20 percent of the assets in Asia 
tfiat are liquid, about half are in private 
banks, he said. Happily for the region's 
bankers, the profiles of their clients are 
changing, as the first generation of 
Asias wealthy give way to a new gen- 
eration more comfortable with assets 
cgher than cash and real estate. 

£:The rise of this new generation has 
rtfade for big challenges. Often, the 
younger investors are as savvy as their 
bankers since they may have worked for 
artime at a big bank in the United States 

« Europe following their university 
dies. Also, bankers are asked increas- 
)y to structure client portfolios to 
include trusts, a vital tool in mitigating 
estate taxes and in protecting children in 
htgh~tax countries, from paying double 
ot triple the IS percent income tax rate 
in Hong Kong. 

^Thai job is harder than it sounds. The 
iqea of signing personal wealth over to a 
tpisi is too much for many clients to 
bfear. After all, Hong Kong is a city 
wjhere the wealthy distrust banks to such 
aj? extent that they will hold truckloads 
of stock certificates in their homes or 
Offices rather than put them in a bank 
vault In tiie Channel Islands. Clients 

here spread their wealth around three or 
four different private banks, unlike in 
Europe where families may stay with a 
single private banker over generations. 

As a result, it is the children of the 
wealthy who are pushing the trust busi- 
ness forward. 

“It’s the kids who have been to MIT 
to an extent who are driving this. For 
traditional Chinese families these issues 
wouldn’t be thought about,” said David 
White, director of Trust and Interna- 
tional Private Banking at Mees Pierson. 
“But it’s the lads who stand to lose 
because they are the ones who are going 
to see the estate dissipated in taxes,” he 
said, if there is no trust in place. 

While not as profitable as other kinds 
of services, trusts are an essential part of 
any private bank’s product range. This 
portion of the business has recently be- 
come much more competitive, said 
Peter Hodson, who runs die trust di- 
vision in Hong Kong for Bank of Ber- 
muda. The problem? Many of the new 
entrants have never written a trust deed 
in their entire corporate existence, be 
said, singling out certain banks from 
Germany and trance. 

Most bankers agree that any insti- 
tution rushing to set up in Hong Kong to 
take advantage of 1997 jitters will prob- 
ably be disappointed. According to Mr. 
Hodson, the late 1980s were the boom 
years for pre-emigration tax planning, 
although in the run-up to the handover 
to China, there has been a marked shift 
in Taiwan’s private banking business 
from Hong Kong to Singapore, said 
Smart Adam, managing director at Ju- 
lius Baer Investment Advisory (HK) 

Hong Kong is a center for private 
banking from the Philippines and 
Taiwan, but the oqe subject private 
bankers still do not like to discuss is 
China, and many banks say they will not 
touch mainlan d Chinese money. That is 
because if. a mainland citizen, partic- 
ularly a public official, walks in off the 
street with $10 million, the chances arc 
excellent that not all of that money was 
acquired legally, said one banker. 

As elsewhere. Aria is seeing two 
kinds of private bank rapidly emerge: 

Swiss Caught Off Guard 
By Shift in Client Needs 

A Struggle to Catch Up With Competitors 

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tiie global supexbank that can offer all 
services under one roof, and the more 
traditional “relationship” sort of bank, 
often small, almost always European. 

“The first generation of wealthy 
people valued security and secrecy, and 
they automatically associated secrecy 
with Swiss banks,” said Edward Sy, 
Citibank Private Bank's Hong Kong 
country head. “The second generation 
are more educated, more demanding. 
They have been exposed to Wall Street 
and are looking for performance rather 
than relationships.” 

According to Chase Manhattan, these 
clients want to mix private banking with 
their business. “A client in the private 
bank needed a minority partner for his 
business. I met his need. Now he’s 
happy and now he’s giving me some of 
his wealth to manage.” said Georges 


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Europe, Middle East and Asia Pacific 
for the Chase Private Bank. 

The global supermarket banks, 
however, have come in for criticism. 
Often, for example, a client will deal 
with a private banker who handles more 
than 100 other customers. At the larger 
Swiss banks and the smaller European 
institutions, that ratio might be 30 to 40 
clients to one private banker. 

Also, some clients can feel pressured 
by a huge institution that might be re- 
luctant to look hard enough for the best 
prices, even if that means going outside 
the banking “family” for mutual funds 
or hedging products. 

“I’ve found It hard to get bankers to 
help you put money in an institution 

Confirmed on Page 20 

By Erik Ipsen 

L ONDON — After decades at 
the top of the gilded heap, the 
big three Swiss private banks 
suddenly find themselves fa- 
cing unprecedented challenges from all 
sides at a time when they can least afford 

“They are under threat and they 
know they are under threat.” said Mi- 
chael Maslinski, a London-based 
private banking consultant. “The one 
thing that is certain is that they will be 
unable to maintain their market 

A shift of client tastes away from 
traditional Swiss strengths of security, 
stability and secrecy toward actual in- 
vestment performance has bun. Sim- 
ilarly, a growing preference of the 
world's wealthy to have their funds 
manag ed at home rather than offshore 
have put the Swiss at a rare disad- 
vantage. especially as “home” in the 
fastest-growing private banking mar- 
kets means Asia and Larin America — 
places where the Swiss have nary a toe 
in the water. 

For the big three — Credit Suisse, 
Swiss Bank Corporation and the Union 
Bank of Switzerland — these chal- 
lenges come at a parlous time, a time 
when massive property-related losses in 
their Swiss domestic operations have 
rendered them unusually dependent on 
their private banking revenues. 

For the first time, the three big Swiss 
banks revealed this year just how much 
they earn from private banking. Long 
reckoned to be the core of their earnings, 
what stunned many observers was the 
degree of that dependency. 

“What is surprising is how clearly it 
shows up in the numbers.” said Chris- 
toph Bieri, an analyst with Zurcber Kan- 
tonalbank. In all three cases, private 
banking accounted for well over half of 
pre-tax profits. 

Private banking has long had three 
crucial attractions for tire Swiss. It is 
extremely lucrative — Credit Suisse 
calculates that the business has an av- 

erage return on equity for the Swiss 
banks of a fat 40 percent It is extremely 
regular, churning out steady profits in 
boom times ana bad times. And it is 
virtually synonymous with the Swiss, 
who have 40 percent of the offshore 
market by far the largest share of any 

The problem, says Mr. Bieri, is that 
the position of Switzerland is “not that 
unique anymore.” The long drought in 
war and revolution in most parts of the 
world has dulled the appeal of the 
globe's most famous safe haven, leav- 
ing many clients perfectly content to 
keep their banking at home. 

For the Swiss big three that is a prob- 

Nearly 90 percent of the Union Bank 
of Switzerland's 270,000 private bank- 
ing clients, for instance, have their ac- 
counts in Switzerland itself. And while 
that Swiss-based business continues to 
grow for all three of the big banks, all are 
well aware that the fastest growth in 
private banking is abroad, particularly 
m the on-shore banking markets of Asia 
and Latin America. 

“If we concentrate on offshore activ- 
ities, we would definitely cut ourselves 
out of opportunities in domestic mar- 
kets. which are huge,” said Antoni 
Stankiewicz, who heads private bank- 
ing in Switzerland for UBS. “Our re- 
sponse is a clear emphasis on building 
up a local capability in the international 
on-shore market.'' 

It will be a long haul. None of the big 
three has any branches in Latin Amer- 
ica, and in Asia none has more than two. 
Even branching out in their backyard of 
Continental Europe ranks as a recent 
and still rare phenomenon. 

With so much catching up to do, it 
comes as no surprise that all three big 
Swiss banks now talk openly of ac- 
quisitions as a means to accelerate the 
growth of their business abroad. Last 
year, for instance. Swiss Bank Corpo- 
ration bought the largely Asian private 
banking business of Standard Chartered 

Continued on Page 20 

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PAGE 20 



Q & A /3m. Michael Giles, Chairman of Merrill Lynch Private Banking Group 

Clients Are Becoming -More Sophisticated and More Demandings 

J. Michael Giles is chairman of Lon- 
don-based Merrill Lynch Private Bank- 
ing Group, the highly successful and 
closely watched seven-year-old effort 
by America's largest brokerage house to 
break into the broader world of in- 
ternational private banking . In London 
he spoke with the International Herald 
Tribune's Erik Ipsen: 

Q. You recently hired Gemini Con- 
sulting to produce a report on private 
banking. You found that the world's 6 
millio n (dollar) millionaires now have 
$17 trillion in assets and predicted that 
Asia would replace North America as 
the second largest private banking mar- 
ket by the year 2CKX). Beyond that did 
you find that much had changed since 
your first survey nearly a decade ago? 

A. Actually we found that the growth 
in the market had actually accelerated; 
from 8 percent in our survey in the late 
'80s to 10 percent now. Beyond that, we 
noted a drop in the share of the offshore 
private banking market held by the 

Swiss over that same period, a drop of 
around 5 percentage points. 

Q, What do you see behind that de- 

A. As much as anything else, we 
ribute it to the rime-zone factor. The 

attribute it to the rime-zone Factor. The 
fastest-growing markets have b een the 
Latin American markets and the Asian 
markets. The survey, for instance, 
showed the Caribbean growing much 
faster than Switzerland as a private 
banking center. 

Q. Is Switzerland destined then to 
relinquish its long dominance of the 

A. I think Chat Switzerland still re- 
mains very important in the minds of 
investors. It has a history of stability. It 
has a cachet- And it enjoys the position 
in many investors* nunas as the first 
place where they would really consider 
investing. Nose of that is going to go 
away easily. In addition, there is a lot of 
infrastructure and expertise there. 

Q. A number of senior Swiss bankers 
have said that they now view the likes of 
yourselves, Morgan Stanley and Gold- 
man Sachs as their most direct global 
competitors. What are the origins of 
your entry into this market? 

A. Beginning in 1990, we adopted a 
completely different strategy, moving 
away from a U.S. broker to being what 
we call a private bank with a particular 
strength in securities. 

It sounds rather simple. As a‘ U.S. 
broker, we were serving a rather narrow 
set of client needs in terms of products 
and services. They were U.S. dollar. 
They were’ brokerage. And they tended 
to be transactional So by definition we 
were missing a much larger share of 
client needs. 

When we said we are a global private 
bank who really understands securities 
and investing and products and services 
across those markets, then we are ob- 
viously looking at a far larger share of 
client wealth and needs. 

Q. What is the scale of your banking 

A. Thus far we have converted seven 
branches to private banks within 
Europe. We would hope to convert an- 
other four brokerage offices within the 
EU in the next year or two. In addition, 
we have offices in Austria. Switzerland, 
Singapore', Bahrain, the Isle of Man and 
in the Cay man Islands. 

Q. Is your success part of investors' 
increasing affection for equities, given 
the bull markets of recent years? 

A. Clients everywhere in the world 
are increasing in sophistication and 
knowledge about the investment pro- 
cess which means that the idea of pass- 
ive investing, of giving money to your 
Swiss bank and saying I’ll come' back 
and visit it next year — to mare and 
more investors that is just hot as at- 
tractive as it once was. 

! Q. What remains highly attractive is 
the private banking business itself? 

A. Returns on equity for good private 
banks in the 20 percent plus range are 
not unusuaL 

Q. By some accounts there are 
something like 200 private banks cur- 
rently being formed around the world. 
Will all that competition collapse your 

A. & certainly doesn’t make life easier. 

But it is very hard to generalize among 
die newer entrants. The ones who are 
possibly more of a challenge for us are 
those who are not trying to be full-scale, 
all-encompassing private banks, but who 
may be providing a single capability that 
is very distinctive and first class, such as 
someone particularly good at European 
private equity deals. In terms of global 
players, there are only a handful in 
private banking and their overall market 
share remains very small. 

Q. Private h anker s traditionally excel 
at nurturing relationships with their cli- 
ents, right (town to walking their dogs 
and getting those hard to find theater 

rickets. Can you compete on that end£ 

A. We see clients are becoming mote 
knowledgeable, more sophisticated aria 
therefore more demanding — m global 
investing, relative, investment perfor- 
mance. and in terms of service. I dona 
necessarily define service as dog walk* 
ing and t lv»* Tyir tickets. It is a rather 
outmoded concept Yes. we arehappy% 
get theater tickets. : J 

Q. You draw the line at dog walking 

A. Not for you perhaps. Serious?^ 
though, for us it is service in a different 
dim ension, truly trying to meet the ev- 
ents* needs in the amount and quality® 
contact the private banker has with ev- 
ents. Eventually. I want our. private 
bankers to be able to sit in a client 
office and to be able to call up on dtir 
own inter- and intranet services client 
portfolios and analyze them. That is tfft 
kind of service that I think will be In- 
quired in the future. It should come A 
die next two years. . . - 

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In Competitive Field of ‘Wkalth Managers,’ Performance Is What Matters 



By Conrad de Aenlle 

L ONDON — The first concern 
among prospective account 
holders at private banks used to 
be how safe and secret their 
money would be. Now, after 15years of 
rising share prices around the world, 
their interest is focused on how large 
their returns will be. 

To attract customers and keep them 
happy, private banks can no longer rely 
on presenting an image of being mem- 
bers of an exclusive dub- They are 
forced to race in a fast and much more 
crowded field of institutions — retail 
brokerages, fund management compa- 
nies, investment banks — that can 
provide strong asset growth with per- 
sonal service and reasonable costs. 

“Performance is becoming a big is- 
sue.” said Chris Wheeler, European 
sales and marketing executive for Guin- 
ness Flight Global Asset Management. 
“Before, an old man would come in to 
discuss performance for half an hour 
with his banker, then they’d go out to a 
fine restaurant Now younger clients 
spend three or four hours discussing 
asset allocation, then they order out for 

There is more to discuss than there 
used to be. One of the reasons returns 
have grown is that the universe of pos- 

sible investments has mushroomed 
since the early 1980s to smaller, faster- 
growing companies in traditional mar- 
kets and smaller, foster-growing coun- 
tries in the developing world that have 
opened their stock and bond markets to 

Following those markets requires 
high-priced analysts and specialist port- 
folio managers that smaller banks can- 
not hire without driving their fees up, an 
unthinka ble option in a business like 
investment management in which com- 
petition is stiff and charges are foiling, 
even as service and results improve. 
Many fund managers and brokerages 
not only provide asset management but 
are adding services to cater to wealthy 
individuals, squeezing private banks in- 
to a tinier niche. 

"Fund companies directly can do it 
cheaper,” said Ian Orton, editor of die 
industry newsletter Private Banker In- 
ternational. "They are actually like 
private banks. The business of private 
banking is being carried out by much 
bigger institutions than the ones that call 
themselves private banks." 

Rather than trying to beat them — a 
battle they would certainly lose — the 
smaller banks are contracting with out- 
ride managers that are specialists in a 
particular region or type of investing. 

“There aren't many private banks 
that will actually do all of those things," 

Mr. Orton said. “It’s really ‘a myth, the 
whole notion of a one-stop private bank- 
ing supermarket, as-opposed toa more 
speciattstinstitutioa that goes for one or 
others of these services.'* 

The trend is toward the ’‘virtual 
private bank," he said. “Basically the 
tank doesn't provide anything other 
than advice; it becomes a facilitator. If 
you're not restricted by .having an in- 
house asset management service, you’re 
suddenly liberated to take advantage of 
the best managers available. * ’ 

P IERRE Mirabaud, a partner at 
Mirabaud & Cie.. a Geneva 
private bank, has followed such 
a philosophy for 15 years. “We 
have been delegating asset management 
power to thud parties through a multi- 
adviser approach, with managers who 
have to meet three criteria," be ex- 
plained. "They roust have their own 
money along with ours, they have to be 
paid mainly through performance fees, 
rather than' through a fixed fee. and they 
have to add s kills or knowledge that we 
don’t have in Switzerland." 

The value added by his bank, he said, 
is in “picking out managers, monitoring 
them, also giving our clients access to 
managers. Many funds are closed or 
they ask for minimum amounts that are 
quite high; they may not be available to 
a client with $1 million." - 

Private banks that are divisions of 
large institutions generally prefer to 
keep iasset management in-house, where 
they find they have all the tools they 
need. Private client managers at the 
mega-banks insist that they can accom- 
plish their task better than smaller rivals 
because of the complex financial 
products concocted in other realms of 
their financial empires. 

“The higher the asset base, the more 
complicated the person's requirements 
are, -said Henry Gooss, .chief invest- 
ment officer for private banking at 
Chase Manhattan Bank. “One gener- 
alization about our more sophisticated 
clients is they often are institution-like 
in their behavior. Many innovations that 
start on our institutional side, we use in 
short order for ourprivate clients." 

Big banks like Chase especially covet 
nouveau riche business owners with 
complex financial affairs. Their needs 
are difficult to meet with conventional 
asset management products available 
elsewhere, a strong selling point that the 
tanks use to tout their services. 

“The growth of our business is in 

newly created wealth." Mr. Gooss said, 
‘ ’and that wealth is mneb more dynamic 
because it’s usually first-generation and 
the principals who made toe money are 

still active You may have a guy who 

owns a business in acertain industry 
that may- take up most of his assets. We 
look at the business and use that to help 
him to decide how to invest his personal 
liquid assets." 

Money entrusted to private banks 
may grow faster than money invested 
directly with fund managers, but how 
can anyone teU? Because private banks 
do not make public solicitations for in- 
vestors* money, they escape much of the 
regulatory regime imposed on conven- 
tional funds which compels disclosure 
of investments made, fees charged and 
performance achieved. - 

“It is possible to set up a fund for a 
small number of expert investors that is 
not available other than by private ne- 
gotiation with individuals, and there is no 
disclosure or performance require- 
ment." said Diana Mackay, managing 
director for Europe of Iipper Analytical 
Services, an investment fund research 

firm. “But commercial logic dictates that 
customers will be putting a lot of motley 
into these funds, so they will demand 

some son of performance history." jj 

Banks' internal funds and customer 
accounts are independently audited,'^} 
clients will always know where the^ 
stand. Before opening their accounfe, 
however, they must depend on the per- 
formance history the banks choose to 
show them. 

“They may pick dales that give^h 
brighter performance picture," M3. 
Mackay said. "All your figures are Ab- 
solutely accurate, but toe slice you gnfe 
can give a different picture. That’s wfiy 
some sort of independent measure, arafe 
measure against benchmark indices^ 
valuable. JT “ 

"If you put $1 million with a futiS 
manager and $1 million with a private 
bank, it would be interesting to 
where you would do better." she adtfeo. 
“Of course, first you’d have to have $1 
million." 'V 

- ■ 

| .-1. L- 

- K 


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CONRAD DE AENLLE writes obcmi 
finance and investment from LondortM 









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Swiss Bank Corporation's trading floor at Suntec City in Singapore. Asia market is becoming vital for Swiss.' 

The Swiss Are Struggling to Catch Up 

Continued from Page 19 

For those private banking clients 
more frightened by tax collectors than 
revolutionaries, offshore banking still 
retains its attractions. But in attracting 
those clients the Swiss face increasingly 
tough and numerous competitors work- 
ing out of other offshore centers such as 
Luxembourg and toe Cayman Islands. 

In the effort to line up new clients and 
to hold onto the old ones in increasingly 
competitive markets, the Swiss have 
struggled to shed the complacency that 
senior Swiss bankers concede grew up 
over toe decades when Switzerland had 
no real competitors. 

"We have changed our approach to 
be more pro-active, not waiting for toe 
client to come to us,” said Aide Eloni, 
chief financial officer for Credit Suisse. 
"We are traveling out to visit clients 
more than we did in the past." 

The Swiss are also struggling to aug- 
ment their traditionally meager menu of 
financial products, one which in the past 
relied heavily on fixed income instru- 
ments. The shift by the Swiss into equit- 
ies and even derivatives has come hand 
in hand with a new generation of client 
whose ambitions far exceed his fore- 
bearers’ desire merely for capital pre- 

"Service is still number one for cli- 
ents but performance is rising fast as 

number two." said Mr. Eloni. What the 
Swiss have discovered, however, is that 
it is one thing to put a priority on grow- 
ing their clients' assets but it is another 
matter entirely to deliver on that prom- 
ise. ■ 

It is a game played far longer and 
better by the investment banks, many of 
which have in recent years cast their 
nets into foreign markets in search of so- 
called high net worth individuals. Some, 
such as Merrill Lynch, have even gone 
so for as to reconstitute some of their 
overseas branches as folly fledged 
private banking operations. 

To compete successfully against the 
likes of Morgan Stanley and Goldman 
Sachs, one senior Swiss banker con- 
cedes that his bank will require a major 

. skills upgrade." involving the recruiti- 
ng of nothing short of what he termed 
a whole new generation of private 
bankers. ' > 

Never before have the Swiss been 
pulled in so many new product and 
geographic directions in such a sh£i 

^l U f T e ' Th ? t lhey responding 
to toe challenges is certain. Whether the 
wake-up call has come too late remains 
to be seen. ; 

They now know that they just can it 
sit there in Switzerland charging enor- 
mous fees and showing no results." said 
a London-based private banker. It’s a 
sum. i 

far^hrit^* ‘ S - ^" n f on correspondent 
foi the International Herald Tribune. . 

- -- . . ' — -t-c 

Asia s Savvy Young Investors 

Continued from Page 19 

other than their own. They like to take 
the money and then lend it out them- 
selves and thus hide their fee in the 
spread," said a client who like all olhen> 
in a discussion about private banking 
chose to remain anonymous. 

The big banks counter that they will 
farm out money if the customer requests 

active clients ai a Swiss bank may resent 
Wa " umil Z-™ wies“p 

a price at 9:30 ^ ^ ^^ 

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ding% Fea rs of Overheated Markets, Investors Look for Ways to Diversify 

"ati] -> By Aline S ulli van analysis at Credit Suisse Private Bank- increased its weightings in Latin Amer- peaked against the Japanese yen and the relaxed to major markets so they loweT a equity to hedging to distress 

... - -C. — ino m 7iinnh u Afthnnfth mif IniiMtAW an/l A <■!* T . ■ C« — . . 1.. miomII n .USU r^JU C.Haaa Amila 

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'XT^ YOR!C - investing 
rV| “jets when prices in 

I are hovering at 

JL. ^ highs is no mean feat 

.g hares mthc United States and much of 
£urope have soared as have real 
.values m most developed countries. At 
the same tune, low interest rates ™»w> 
bonds unattractive and savings accounts 
even more unapp ealin g 
-J, Private hankers have identified two 
forms of diversification appropriate for 
ttor clients: emerging markets and 
flovaie equity funds. Neither should 
amstiture more than 20 percent of an 
investment portfolio, the bankers 
trained, but each can provide a mnr-fr 
npeded alternative to what increasing 
-numbers of investors fear are over- 
heated markets. 

^..Indeed, even tbe most conservative 
ftinkas are observing a marked change 
foeir clients’ perspective. 

L ,_ “Many of our clients plan to soon 
shift their equity assets out of the United 

r said Urs 

, head of equity 

analysis at Credit Suisse Private Bank- 
ing m Zurich. “Although our investors 
tend to be passive, we are conscious that 
more and more want to invest in emerg- 
ing markets.” 

Credit Suisse recently developed a 
capital gains equity portfolio as an al- 
ternative to its income and balanced 
portfolios. This newportfolio has high- 
er weightings in Europe outside of 
Switzerland and in die emerging mar- 
kets of Latin America and Asathan its 
more conservative counterparts. 

A similar shift in focus is already 
taking place in North America. 

“All of our clients are concerned 
about the levels of the U.S. stock market 
and many have asked us to reduce our 
exposure,” said Henry Gooss, chief in- 
vestment officer for private banking at 
Chase Manhattan in New York. “But 
putting [these funds] into cash is not 
something we would usually do. In- 
stead, we are advising diem to become 
more diversified.” 

Chase Manhattan has reduced the ex- 
posure of its model equity portfolio for 
dollar-based private clients to the U.S. 
stock market by about 10 percent over 
the past year. Instead, the bank has 

ica and Asia, apart from Japan. 

All told, theUnited States constitutes 
34 percent, Europe 39 percent, Asia 22 
percent and Latin America die remain- 
ing^ percent. 

Emerging markets may be the ob- 
vious alternative to Wall Street and die 

‘All of our clients are 
concerned about the 
levels of the U,S. stock 
market . ? 

European stock markets, but many 
bankers warn that they are too volatile 
and illiquid to represent a substantial 
p ro p o rti on of an investment portfolio. 

Gerald Lanr, the New York-based 
chief investment officer of Britain’s 
Coutts Group, said increasing numbers 
of clients want to hedge their portfolios 
against a possible downturn in the 
equity markets. Dollar investors are also 
concerned that their currency has 

peaked against the Japanese yen and the 
major European currencies, he said. 

“We are offering these clients option- 
based products which allow them to 
participate to a limited degree if the 
stock market or dollar continues to rise 
but also protects diem to some extent if 
values decline,” Mr. Larr said. “There is 
no one formula. Instead, each product is 
structured for the individual client de- 
pending on his or her tolerance for 

Mr. Gooss suggested that shares in 
small companies may still be attractive. 
“Over the past 12 months, the S&P 
index [of leading U.S. stocks] has risen 
20 percent, but tbe Russell 2000 [an 
index of small stocks] has remained 
flat,” be said. “There is still some good 
value in these small and mid cap 

Alternative investments, such as ven- 
ture capital funds, offer a further route to 
diversification fra- some high net worth 
private investors. Donna Curry, first 
vice president and director of private 
advisory services at Merrill Lynch, 
noted that alternative investments are 
one of the fastest-growing asset classes. 
“Alternative investments are not cor- 

portfolio’s overall volatility while in- 
creasing returns,” she said. “We are 
suggesting that about 20 percent of 
private client assets be invested in al- 
ternative investments.” 

M R. GOOSS agreed that 
there is a limited amount of 
diversification possible 
wife stock market invest- 
ments, even in emerging markets. “That 
is why we are putting more emphasis on 
investments which shouldn’t move in 
sympathy with world equity markets.” 
he said. 

Alternative equity funds can be very 
tax advantageous for U.S. investors, 
pointed out Barry SJoane, head of 

? ivate banking at Credit Suisse in New 
ark. “We are not recommending any 
major shift in equity positions because 
we are still confident in fee U.S. mar- 
ket,” he said. “But for people who have 
reached their own level of discomfort, 
we do suggest a shift to private 

Merrill Lynch, Chase and Credit 
Suisse in New York all run alternative 
investment funds, ranging from private 

equity to hedging to distressed real es- 
tate. Credit Suisse funds invest- in com- 
pany restructuring ahead of stock mar- 
ket listings, partnerships between 
emerging markets and U.S. companies 
or simply provide venture capital m 
emerging markets. Clients must have at 
least $1 milli on to invest in a fund and 
that should account for no more t h an 10 
percent of their total portfolio. 

Merrill Lynch has 10 such funds 
available to its private clients, most of 
which require a minim um investment of 
$1 milli on pledged for five to 10 years. 

Offshore investors wife a bit less to 
spend may be able to participate in fee 
$300 million Chase Multi-Strategy 
Fund. This fund is open to offshore 
clients with $250,000 to invest and, 
since April 1. U.S.-based clients wife a 
further $5 milli on in assets. The two- 
year-old fund, which is run by 28 man- 
agers specializing in investments rang- 
ing from short selling to exotic markets, 
has generated a net average annual re- 
turn of 17.1 percent. 

ALINE SUUJViN is a freelance jour- 
nalist based in Greenwich, Connecti- 

Going After ‘No Money’ Class of Young Professionals 

By Conrad de Aenlle 

ull - 

£»" ONDON — The clientele of 
ft private banks has evolved from 
-M . ‘old money” to “new 
money,” and for some insti- 
tutions, especially in Britain, it is be- 
coming available to a new class of cus- 
tomer, “no money.” 
r t Ld a lucrative but increasingly com- 
petitive business, some banks are com- 
ing to think that fee best way to achieve 
gyowth is to offer their services to cli- 
jeots without a fortune but wife fee po- 
tential to acquire (me. The targets typ- 
-igally are young professionals, doctors 
riot kmg out of mttiical school, say, who 
have started a high-income career but 
still may have nothing in fee bank. In 
fact, they may have less than nothing, 
^ihan accumulation of student loans or 
^g, mortgage from a recently acquired 
lust bouse. 

. * Kleinwort Benson Private Bank, a 
division of fee British investment bank 
feat was acquired two years ago by 
4Jre$dner Bank of Germany, is one of 
fee most aggressive solicitors of busi- 
ness from the “no money” class. The 
bank will begin a service in September 
'aimed az customers earning a minimum 
*of £50,000 a year, or about $80,000. It 
. wiD offer fee usual array of features: 
^checking, credit cards, loans and so 
forth; more important, if win provide 

personal attention of fee sort feat is 
unavailable at large retail banks. 

“We believe fee best indicator to fu- 
ture wealth is present-day high income,” 
said Stephen Renals, Klein wort’s mar- 
keting director, in explaining fee ra- 
tionale for the service. “We’te seeking 
to give the high-income earner access to 
fee same culture of relationships as in 
traditional private banking.” 

Such individuals “fr e l ** he 

said. “If you don’t have assets of 
£200,000 or mare, you can’t get access 
to old-style private banking. We want to 
offer the same bespoke service if you 
only have £5,000 to invest” 

The bank expects many of its clients 
to have even less. In handling their 
accounts, Mr. Renals said, fee goal is to 
“manage debt and help them change 
over time from a banking relationship to 

an assf* management mlarinn«thfp l * 

Kleinwort’s keenness for furthering 
the prosperity of middQe-class British 
yoam stems from tbe realization that 
upper-class B ritish youth — fee ones 
who are rich or will be when their par- 
ents die — is already spoken far. 

“Traditionally, especially in the UJL, 
private banking has tended to exclus- 
ively concern itself wife individuals who 
are wealthy,” be said. “Thebanks — fee 
Couttses and Hoares and whatever — 
catered to the wealthy aristocracy, ft’s a 
very attractive market, but it’s quite a 
smalt market ft’s a good business for a 


bank to be in, but fee market’s got quite 
a lot more competitive. 

“In tbe late ’80s, we looked to see 
how we could expand in this market, 
and one of the things we found was feat 
fee biggest asset we bad was our client 
base. Our competitors have a similar 
relationship wife their client base, so 
movement within our peer group is min- 

I T WOULD be even harder for a 
bank like Kleinwoct, more widely 
known as an investment bank, to 
yank customers away from bhie- 
blooded private banks like Coutts, 
banker to fee queen. 

“Anybody coming into tins market is 
going to have to start looking for the 
potential rich rather than tbe ernes who 
have already hit the jackpot," said Ian 
Orton, editor of the'industry newsletter 
Private Banker International. “It’s no 
exaggeration to say feat hardly a month 
goes by without a new initiative being 
announced by an institution.” 

Banks in Britain are especially will- 
ing to be-patienr because of fee mixed 
nature of wealth creation there. The U.S. 
economy is relatively easy to get rich in. 
In the less ent erpri sing economies of 
Continental Europe, wealth is often in- 
herited. Britain used to be like the rest of 
Europe but since the Thatcher years has 
shifted toward the U.S. model. 

“The pattern of wealth has 

’Ybu’ve got the vision. 
We’ve got fee know-how. 

You see things for what they 
are. And also for what they 
could be. 

It’s the kind of vision that 
ignites and fuels the entrepre- 
neurial spirit 

We at Credit Lyonnais Private 
Banking share this vision. 
And, equally important we 
have the knowledge, special- 
ized products and services 
to help you get .where you 
want to go. 

Our Geneva subsktiary, 
to Private Banking sir. 

We’ve gained unrivaled, in- 
depth experience from our 
group’s worldwide presence. 
Even in the most out- of- the - 
way countries. 

But there is yet another 
key dimension to Credit 
Lyonnais Private 
Banking strength. 

From the time 
we opened our 
first office in 

120 years 
ago, our 
history has revolved around 
durable, personal relation- 
ships, based on dialogue and 
attention to detail. 

We listen first... and then 
respond with speed, efficiency 
aid a total commitment to 
providing the precise solution 
for your demands. From trade 
financing and international 
logistical support to portfolio 

management financial instru- 
ments and precious metals. 
Whether you are a private, 
corporate or institutional client 
you’ll find Credit Lyonnais 

Private Banking can anticipate 
and serve your needs through 
dose partnerships built on 
trust and vast resources. 
Together, these two dimen- 
sions create something 
unique in Credit Lyonnais 
Private Banking. 

Let’s talk. 


Private Hawking NETWORK 

HEAEOUUtnss for Credit Lyonnais International PmvAre Banking 

P«fraT 331 m 03^ K M ^ uontBima m. 598 2/95 08 67 • Miami to. 1 305/375 78 14 
Monaco 73 * - S8 • 6*535 * 77 

changed,” in Britain in the last 20 years, 
Mr. Renals said. 4 ‘Inheritance has be- 
come less important relative to people 
who are building up their own 

Banks are anxious to get into private 
client management for two key reasons. 
The fee income can make it extremely 
profitable, and the profit is generated 
without risking a bank’s capital. Rules 
adopted by the world’s banks in the 
1980s imposed tighter restrictions on 
landing, putting a p remium on income 
derived from fee-based, off-balance- 
sheet activity. 

Big international banks are less in- 
clined to embrace so-calied income- 
based accounts; many will still reject 
anyone who walks in with less than $1 
milli on of investable assets. The reason 
is they see themselves first as invest- 
ment managers. 

“Our private bank is for people who 
have assets already,” said Jo Wright, a 
spokeswoman for Barclays Bank. 
“Coutts is thought of as a red-carpet 
clearing bank. That’s not what our 
private bank is all about We’re more 
interested in asset management. We're 
looking for assets to manage imme- 
diately, not in die future.” 

As private banking becomes more 
competitive, even a bank like Coutts, 
which has had so many rich clients, is 
taking on more ordinary clients who, it 
hopes, will possess tomorrow’s wealth. 

British youth in the City. Bonks are targeting up-and-coming achievers. 

“They are a target for us because 
we’re into building relationships with 
clients for the long term,” said Emma 
Wheeler, a spokeswoman for the bank, a 
subsidiary of National Westminster 
Bank, “there are no set criteria in terms 
of assets. Our client base is changing a 
lot now from older, aristocratic wealth 


to the young achievers around the 
world: young investment bankers or 
young professionals such as barristers. 
In major financial centers around the 
world, there are people doing incredibly 
well, wife enormous bonuses. They’re 
good at making money but have no 
experience at handling it.” 

-» W " . ■- —W? *< t ' 

This man is a Chase Priv ate Banker. 

He will be on hold for the next 
] minutes and 46.5 seconds. 

But hi> thoughts will trav el 
40 years into the future. 

We pa\ him to timeshift in 
rhi> fashion. 



Because he’s thinking 

About trust creation. 

And how your ii r a n dchTfd re t*f% 

can inherit more than vour winsothe smile. 

Provided, ot course, you Ye a 
Chase Private Banking client. 

I J I I V I i A s j_ M \ \ I] a TT.W V K ! V A T V L A N K 
C'llAsl . I hi' riiihl luLuiori'hip is everything.' 

It von n.'iikl !iki- i.i 1.1 A :• i. h.i'C I’rivat. LVii'iIuT our '.A'V'I ii.v. Mmciji rup iWiii 
iii |'i-ri !. >lii> . iruM' c-i.i;..' pi. in hi I':i nti 1 1'.” :ind crfdil pnuii v; v h v\i 

H'.irLi'l- .iiij i:::ii'i,i"uiK-ni tool.', call an\ one "I our H’l.ffja.--. 


PAGE 22 

THURSDAY, MAY 15, 1997 

World Roundup 

Canadians Defeat 
Swedes for Crown 

hockey Owen Nolan of the San 
Jose Sharks had a goal and an assist 
as Canada beat the Olympic cham- 
pion Sweden, 2-1, on Wednesday 
to win the world ice hockey title. 

The victory capped a gritty 
comeback by the Canadians alter 
they had lost the first game of the 
best-of-three final Sunday. It was 
their 21st world title, but only their 
second in the past 36 years. 

The victory ended a frustrating 
suing of second-place finishes for 
Canada that stretched back to the 
1 994 Olympics, won by Sweden in 
an overtime shoot-out 
Despite running into penalty 
problems in their earlier clashes 
with the Swedes, Canada continued 
to employ its familiar aggressive, 
hard-hitting style. Canada con- 
trolled the pace of the contest from 
the opening face-off and got rock- 
solid goaltending by Sean Burke of 
the Hartford Whalers. 

Burke, who started every game 
in the Canadian net. collected the 
gold that had eluded him at the 
1989 and 1991 world champion- 
ships. when the team returned 
home with the silver medal. 

Nolan, who was suspended for a 
game for his part in a brawl against 
the team from the Czech Republic, 
made his presence felt on the score- 
sheet, setting up the opening goal 
and scoring the second. (Reuters) 

This Time, Rodman 
Flies Over the Hawks 

Bulls Charge to 4-1 Series Victory 

By Selena Roberts 

New York. Times Service 

CHICAGO — The Bulls pulled out 
their eye-popping display, ' complete 
with bells, whistles and Dennis Rod- 

i ■ mu 

He was on the floor a g ita t ing, re- 
bounding and scoring — of all things — 
far longer than usual before his late- 
game ejection. His contribution to a 
fourth-quarter surge might have saved 
Chicago from embarrassment. The de- 

night, Rodman was ejected for the 
second time in this series. Mutombo 
wasn't. “That was a miscall by Ken 
Mauer,” said the Bulls' coach, Phil 
Jackson, referring to the official. 
“Mutombo was making the gestures. 
Mauer just assumed Rodman was. It 
was Dennis's reputation that got him 
thrown out of the game.” 

Suddenly, everyone is sticking up for 
Rodman. He had been blasted by his 
teammates and chastised by eveiyone 
else for being such a problem child in 
the playoffs. Just contribute, that’s all 
anyone wanted. Forget the rest 
But before Rodman departed, he cel- 
ebrated his 36th birthday by discovering 

fending champions had to liven up to 
prevent another comeback by the At- 
lanta Hawks and keep themselves on 
schedule for their seventh appearance in 
the Eastern Conference finals in nine 

yet another way of getting attention. 
Surely he had run out of emunicks. He 

Wilander and Novacek 
Suspended Over Drags 

TENNIS Mats Wilander of 
Sweden, once ranked No. 1 in the 
world, and Karel Novacek of fee 
Czech Republic were suspended 
from tennis for three months Wed- 
nesday after dropping their legal 
battle over drug tests that showed 
fee presence of cocaine in their 

The International Tennis Feder- 
ation said fee pair had acknowledged 
fee positive results of ding tests 
taken during fee 1995 French Open. 
But fee players said fee cocaine had 
been unknowingly consumed. 

The federation said the two play- 
ers had been ordered to return all 
prize money earned at the 1995 
French Open and since — amount- 
ing to $259,005 for Wilander and 
$185,765 for Novacek. ( Reuters ) 


The Bulls are on their way again after 
taking Game 5, 107-92, on Tuesday 
nighi at fee United Center, winning their 
second-round series with the Hawks, 
four games to one. The B oils now can sit 
back and await the winner of fee series 
between the Miami Heat and fee New 
York Knicks, who lead it, 3-1. 

“If it's fee Knicks. we feel confid- 
ent," Michael Jordan said. “Ii may go 
to seven games, but we feel confident. I 
think we’re leaning toward gearing up 
for fee Knicks until fee Heat proves us 
wrong. It’s always been an intense 
thing. But they’ve never been able to 
figure us out consistently." 

It is bard to figure out fee Bulls. Just 
when they start being die invincible 
ones again, they nearly let fee Hawks 
sneak up on them — ag ain. 

Not about to disappear, the Hawks 
took advantage of the Bulls’ second- 
half complacency. A 16-point Bulls 
lead at fee half evaporated to seven 

Surely he had run out of gimmicks. He 
had cried everything from ti ght girdles 
to tell-ail books, from multicolored hair 
to catchy tattoos. 

So Rodman did what fee flamboyant 
rebounder never does: He hit a 3-pointer 

in fee first quarter. He was feeling touch 
in previously touchless hands. So he 

points wife 10 minutes left in the game. 
It was not Jordan — . who was 9 for 23 

It was not Jordan — . who was 9 for 23 
wife 24 points — but Rodman who gave 
his team fee push. 

And fee irritated Hawks pushed back, 
literally. With fee Bulls up 95-86, Rod- 
man stole a defensive rebound from 
Dikembe Mutombo. An irked Mutombo 
retaliated a few seconds later by knock- 
ing Rodman down, Rodman bounced 
right up. 

But wife 2:44 left and the game safely 
in Chicago's hands, Mutombo and Rod- 
man wait at it again. So close to a clean 

in previously touchless hands. So he 
asked for fee ball again, and he knocked 
down a 19-foot jumper, followed by an 
11 -footer. 

He had seven of his 12 points in fee 
span of a minute to help fee Bulls close 
out fee first quarter wife a 33-27 lead. 
His seven points also equaled his 
minutes on fee floor after being brought 
off -the bench by Jackson, which has 
become a game-by-game move to test 
fee water with the officials. This time, 
Rodman doubled his playing time in the 
playoffs, going 33 minutes before he 
was ejected. 

“He gave us what we needed to 
win,” said Scottie Pippen, who had 
been critical of Rodman’s demeanor in 
the playoffs. “He got info Mutombo ’s 
head. He did what he set out to do.” 

Mutombo was a target the whole 
game. Almost four minutes into the 
game, Jordan dunked on fee swatting 7- 
foot-2-inch Mutombo. Then Jordan did 
fee Mutombo. Jordan wagged his finger 
in “no-no” fashion after the one- 

Steinbrenner j 
And Yankees « 
Are Ostracized! 
Over Lawsuit 3 

By Murray Chass 

New York Times Service 

CHICAGO — George Steinbrehqeg, 
the owner of the New York Ya n kee^ 
who is suing every other team and eveiQ^ - 
high-level official of Major Leaguft 
Baseball, has suffered a double-barrelod 
blow. -.' 

Baseball’s executive council has sus- 
pended him indefinitely as a member 
and the law firm representing him in the 
lawsuit says it no longer will represeP: 

him . 

The council, saying fee lawsuit wa|>r 
* ‘blatant violation” of the Majqr, 
League Agreement, also stripped the 
Yankees of membership on all corj]^ 
mirtees on which the owner or any othej; 
official served- • . -i 

“This is sad, and it’s too bad,” sajp 
Bud Selig. chairman of fee counptf^ 
which rules baseball in fee absence of$», 
commissioner. Steinbrenner was oneqt 
10 members of the body. 

The council, Selig said, did not dis- 

cuss fee possibility of suspending Stein- 
brenner from baseball. 'r 

brenner from baseball. % r 

“At this point, given where we qjfe 
and given what’s happened so fat, we 
believe feat is fee appropriate action at 
this point in time,” he said in respond 

to a question about a general suspen- 
sion. He emphasized fee phrase “at digs 
point in time.” *■ * 

In New York, meanwhile, Gravafe, 
Swaine & Moore decided it would with- 
draw from its representation of Stein- 
brenner in the lawsuit it filed a week ago 
in Federal District Court in Manhattan. 
Samuel Butler, Cravafe’s managin g, 
partner, said details remained to fc|/ 
worked out, but he said, “There’s g & 
question we'll not continue to represec£ 
Mr. Steinbrenner in fee matter.” ♦> 

Asked what details had to be worked 
out, Butler said, “We have to make susg 
Mr. Steinbrenner will have counsel sat- 
isfactory to him.” .fl 

He did not explain fee firm’s de^. 
cision, but it had a potential conflict j& 
representing Steinbrenner because 
Cravaih bas long represented Ttmp- 
Warner Inc., parent company of ti& 
Atlanta Braves, one of 46 defendants^ 
the suit 

. -■ Steinbrenner, joined by Adidas 'ACfe 
the German sneaker and. sportswear 
company with which fee Yankees ha&g 
a $95 million sponsorship deal, is suing 
on antitrust grounds, challenging tfe 
agreement that governs baseball's J&; 

Soon Ohoa/Rcma* 

The Bulls’ Michael Jordan d unking over the Hawks’ Dikembe Mutombo 
in the first quarter. Chicago advanced to the next playoff round. 

m no-no tashion after the one- 
handed dunk, providing an exclamatory 
jab at Mutombo ’s churn feat fee 6-6 
Jordan had never jammed on him 
The wag mimicke d Mutombo’s fa- 
mous taunt after “every blocked shot . 
And when fee .finger is pointed]; at 
player and not the crowd, a technicqL&n 
called. Jordan did pot-rmndJhpAffi^- 
nicaJL “Just wanted him to know I could 

still dunk on him,” Jordan said. “We did what we should have done 

In other playoff action, "the Asso- at home.” forward Terry Cummings 
dated Press reported: said. “It was a gut check. We did a good 

Supersonic* loo. Rockets 94 Seattle job defensively and rebounding. For fee 
found a solution to Houston’s sharp- first time this series, we concentrated on 
shooters just in time to stay alive in the getting Hersey fee ball and making 
playoffs. Hersey Hawkins had 23 Maloney work.” 
points, including four 3-pointers, and Until Tuesday night, Maloney and 
Gary Payton did a defensive job on Matt Mario Elie hitting effectively from 3- 
Maloney to lead the Sonics to victory point range was enough for the Rockets 
Tuesday night to take'a 3-1 lead. But feey went cold on 

; TlRtRdj^ets still leadthe s g jes-3-2, ^pointers Tuesday night as Maloney 
ah<LtQ5tt^pfft£zt ~i»^6«fbr-6hnd Elie was Orfor-5. . . 

nfJ^ThSfyfhe -SuperSohics ; ^Payton scored 21 points and Shawn 

about returning home for Gaine 6; Kemp added 20 for the Sonics. 

Muster Wilts on Clay as Draper Wins 

censing and sponsorship business. 

Selig announced the suspension 

Scott Draper of Australia celebrating his 7-6 (7-4), 5-7, 7-5 victory over 
Thomas Muster of Austria at the Italian Open in Rome on Wednesday. 

The Associated Press 

ROME — After a three-hour mara- 
thon on clay, Thomas Muster usually is 
fee last man standing. Not this time. 

Once nearly invincible on clay. 
Muster couldn t cope Wednesday wife 
the scorching heat and gutsy play of 
Scott Draper at fee Italian Open. 

Muster, fee third seed ana two-time 
defending champion, was treated for 
severe dehydration after his 6-7 (7-4), 7- 
5, 5-7 defeat — fee Austrian’s fourth 
straight early-round exit on the surface 
he once dominated. 

“He suffered from hyperventilation 
and loss of body salts,* ’ an ATP spokes- 
man, Nicola Arzani, said. “He can 
barely speak, but he is out of danger. 
The doctor has ordered him to rest" 

The match, played under a blazing 
sun with temperatures reaching 90 de- 
grees Fahrenheit (32 degrees Centi- 
grade), turned into a battle of attrition. 
Both players were clearly tired in the 
second set, and by fee middle of fee 
third. Muster was bending over baween 
points to catch his breath. 

Draper, ranked 75th in fee world, is 
accustomed to fee heat and humidity of 
his nati ve Queensland, Australia, and 
coped better wife fee conditions, keep- 
ing up fee pressure until Muster finally 
ran out of steam. 

“I love the heat and can handle it 
hater than most people," Draper said. 
“That certainly was in my favor 

today.” But he still was amazed feat he 
had outlasted a player renowned for his 
fitness and willpower. 

Muster's exit followed Tuesday’s 
first-round elimination of top-seeded 
Pete Sampras and second-seeded Mi- 
chael Chang. 

Fifth -seeded Richard Krajicek, who 
lost to Muster in last year’s final, joined 
fee exodus Wednesday. He lost 7-6 (8- 
6), 7-6 (7-1) to Marc-Kevin Goe liner of 

The only one of the top five seeds 
remaining is No. 4 Yevgeni Kafelnikov, 
who outlasted Paul Haarhuis 7-6 (7-5). 
3-6, 6-3. 

Also advancing were No. 6 Goran 
Ivanisevic, No. 7 Marcelo Rios, No. 8 
Carlos Moya and No. 12 Boris Becker 
— all in straight sets. 

■ Graf Victorious Again in Berlin 

Steffi Graf continued her return to fee 
women’s tennis tour in fine fashion, 
taking less than an hour to rout Rux- 
andra Dragomir of Romania, 6-3, 6-2, to 
reach fee quarterfinals of fee German 
Open, The Associated Press reported 
from Berlin. 

. The top-seeded Graf, seeking her 
1 0th title at the $927,000 event, lashed a 
backhand winner down the line to close 
out the match in 54 minutes against the 
15th seed. It was a big improvement 
over her shaky victory Tuesday against 
Chanda Rubin, her first since returning 

from a three-month layoff caused by a 
knee injury. 

“I was nervous and uncertain yes- 
terday — feat wasn’t fee case today," 
said Graf, who lost her No. 1 ranking to 
Martina Hingis during her layoff. 

The No. 2 seed, Jana Novotna, ad- 
vanced to fee third round, while No. 3 
Lindsay Davenport became the first big- 
name loser at the event, which began with 
16 of fee world's top 20 players. Sandrine 
Testud of France beat fee American, who 
fended off three match points before fall- 
ing 7-6(11-9), 7-6 (9-7). 

Graf appeared rusty and erratic in her 
three-set victory Tuesday over Rubin, a 
hard hitter who plays for fee big points. 
But against Dragomir, a baselining 
clay-court specialist, she found her 
rhythm, proving she still has the hard 
serve and formidable forehand that have 
made her a seven-time Wimbledon 

“You can’t compare the two 
matches, because fee opponents are so 
different," Graf said. “Today 1 had 
more time to get ready for points.” 

While most seeds advanced Wed- 
nesday, two were forced to withdraw 
wife injuries. No. 11 Brenda Schultz- 
McCarthy of the Netherlands pulled a 
hamstring against Sabine Appel mans of 
Belgium, and No. 9 Karina Habusdova 
of Slovakia pulled out of her match with 
Gloria Pizzichini of Italy with stomach 

Selig announced the suspension 
Tuesday after a four-hour meeting yf 
Chicago. The nine members of fe$ 
council present discussed the matter for- 
about an hour, one of them said, and 
Selig added that the vote to suspend was 
“veiy unanimous.” Steinbrenner, fea 
said, had not been invited to attend. 

“Obviously,” Selig said, “when 
you’re discussing a matter like feat,: I 
would think recusal is logical. I do rt’i 
think anyone would debate th at ” 
Steinbrenner said Friday he had 
offered to recuse himself from any ccua* 
cil discussion about the lawsuit, but tlrfl' 
gesture was not enough for the councu* 
Howard Rubenstein, a spokesman for 
fee Yankees, issued a one-sentence state- 
ment following fee council's action: 
“The lawyers for the New York Yankees 
and Adidas are studying these actions 
and reserve all comment for now.” i* 
The council acted on the basis of the 
provision in the Major League Agree- 
ment, which all owners sign, that pro- 
hibits clubs from suing fee commis- 
sioner. The council serves as 
commissioner when the office is vacant, 
which it has been since the owners ous- 
ted Fay Vincent in September 1992. " 

. Clubs, however, have sued commis 1 - 
sioners and not been disciplined. * 
The most recent to do so was tfai 
Tribune Co., owner of fee Chicago 
Cubs, which sued Vincent earlier 'xa 
1992 over his realignment of the dij 
visions in the National League. The 
Tribune Co. was not a member of the 
executive council at fee time. 



Major League Standi mos 










New York 


























Kansas Oty 









































mmOIIAl IH880 





















New York 






• T4 
































San FrandKD 22 









Los Arrgdes 












smidt 000 aw m-A 3 o 

MBwouSea 001 NO 000-1 6 0 

RaJotmMfl, autumn m nwJ Dawnson; 
J .Mercedes, WJdtaxm (W, Paten CW and 

Mammy. W-RnJohnson, 5-1. L— Fetter*. 
1-l.Sv— Chariton (9). 

BaHhnen 023 Be 080-7 13 0 

nMMi 020 801 000—3 7 0 

Mussina. Orosco tTU TeJttaftewa CB) and 
Hales: Mahler, XMortgomery CO, Groom 

(6) . Wengert CD, A. Smdi (?) and Moyne. 
W— Mussina, 5-1. L— Mower, 0-5. 
HRs — Baltimore, Surtuff CO. Oakland, 
Moyne CO. 

Trail 000 000 000-4 4 I 

Detroit 210 000 10»— 4 7 1 

Gutman. Spofrrie O), QuanMl (5), 
Crabtree (73, Ptesuc CM and Santiago; Lira 
□ad Casanova. W — Lira. 2-2. L— Gmmmv 3- 
X HRs— DetmB, Hamefln2CD. 

Beaton OH MO 008—1 2 O 

KaoMsaty 1« 020 00*— 4 15 > 

Seta* Wnsdbi CO, Grand! 15). Borland IS), 
COrsI (8) and Hattoew Batcher and M. 
Sweeney. W— Bekhan 5-X L-Sete> 4-2. 
New Ybrk 1* VO 010-11 15 1 

Mkuesata 110 000 000-3 11 0 

Cone, Lloyd (81, Stanton CW and GhrerJl; 
Robertson, Jmvts (ft Trombley HE), RBehle 

(7) , Guardado CB). Nattily CW and Stefnbach, 
GJWyem (71. W-Cbne, 5-2. L-Roberttoa3- 
X HRs— New YOrk, Marline* (15), B. 

Cleveland 000 301 003-7 12 1 

TtSUS 012 OH 000-3 8 1 

Ogea, KBae (71, M. Jodaaa 05, 
Asstnmacber CB), Mem S), Mannan W and 
s. Atonwn Bcrdas TO; OOver. WMtestdo (O, 
XJHeramdez (9), Vaetxrv (9), Patterson (9) 
aid L Rodrigue*- W—Ogea,3-X L-OOmr, 1- 
4 sv— Mormon. Hte-Ctevekmd, M. 
WNkm GDI. Tens, J. Canada □!. 
GNagg »i 0M 031-7 11 i 

Aeoficka 007 000 10 k — I 13 2 

Mdiria, UTlumw (7X KonJinw CO and 
Kraufeo Langston, Holt* (71, P. Harris (0,(3- 
Moy CO, Jones (B) and Uyffix, Fabragas 
W. W—Lmgstan, M. L— BakWh, 1-5, S»- 
— James (4J. HR— CMcagsy P. Thomas (5). 

SL Loots 001 100 100-2 3 0 

PModefebia 000 OM W*-3 *1 

AaBeneh Painter IB), Malfmws 6», 

Possas CM and Lampfeiru Stephenson, 
Sprodin (S), BcttaDea (9) and Parent, 
Ucberflml (8). W— SprodBn, 1-1. 
L— Mathews, 1-2. S v BottnDco CB). 
HRs — St Louts, DeSlMds CO, Lampkfn CD. 
Houston 000 1U 000-3 .7 2 

New York M2 DM 10M-4 0 0 

Hampton. R. Sponger OJ, R. Garda (8) and 
Austins; Reynoso, McMktuel (7). Franco 
(9) and Hundley. w-McMkbael 3-2. L— R. 
Springer, l-l. Sv— Franco GW. 
HRs— Houston, Bony O. New York. Huskey 

(7) , Reynoso 0). 

SaeDlege 000 120 000-3 11 1 

M antral 402 OM IOfc-7 10 1 

VMenzueto, Conrune (5), Long (7L D. Vs- 
ras (0) and G. Hernandesc PJMartkm and 
n ei th er. W— P. Marine*. ML L— Vaien- 
mefcv 1-5. HR— Sen Dfc*a K. Rodrtgtm* PI. 
San Fnmdsco 004 OM 000-4 0 0 

Gnclnafl 000 OM 010—1 4 2 

Estes, R. Rodriguez CB), Henry O). Beds 
(91 and R. WBMns; Burba Carrasco (71 
Rent Unger (9). BeOndo (9) and IMver. 
W— Estes, 5-X L— Burba, 3-*. Sv-Beck 
03). HR— Sai Frandsah Ken* (8). 

Ptoctda 102 788 881-11 13 0 

Atlanta 800 081 880-5 8 1 

Saunders, Cook 00, Povwli Oi and C 

Johnson: watte Byrd (4), aontz (6). BfcteckJ 

(8) , Embrse (9) and Lope*. W— Sounders. 2- 
l. L— Wndev 1-X HR*— Rorida, C Johnson 
a). Barilla cn. stwmeid ffl. Adnata 
MeGfW (O- 

lei 8 water 8M 800 100-1 7 0 

gdam ON 008 82*— 2 < 2 

Ariaclo and Piazza; MribritaMi wendeO 
OT, Rajas (9) and Servafc. W-WendriL 1-2. 
L-Astade, 3-1. Sv-R|*B («- 
HR— Odcago, Sooa W. 

15 17 — AS9 4JJ 

14 16 - Ml AD 

14 17 — AS! AS 



HtraNma 6, Ytxnfcnf 5 
Yataittvs. ChualchL ndnod our 
HatsMo vs. Yokohama, rained out 

World Championship 

W L T PcL G> 

10 13 — J81 — 

15 13 — 536 15 

17 15 - 531 15 

14 15 1 .483 2D 


wEDNesDxy. in Hajnntci, Finland 
Canada X Sweden 1 

(Canada wan Rued 2-1) 
ForSdpkwe: Cacti Republic 4 Russia 3 

Nlppeii Ham 15 17 — 3S 

mitetsa 12 18 1 MX) 55 

DritfX Kintetsu 1 

OrbCMCSriba, rained out 
Latte *%. Nippon Ham. rained out 

Stendktgn lor the Ryder Cup to be pieyad 
BepL 2848 el vaMenema In Sotograndc, 
Sprin. The top IQ flnlahara quafity ter the 12- 
man Irani ami LLS. captain Tom Ktta and 
Cui opaen ca p tain Sava D a ll aataroa each 

1. Martina Hingis, S w ttroriond 
4574polnts X Steffi Grat Germany. 417& 3. 
Monica Seta U5„ 3568. 4. Jana Novotna. 
Czech RepuWc 331 X' 5. Lindsay Davanport 
1)5,3910.6. Arantxa Sanchez Vlearia Spain. 
280* 7. Anke Huber. Germany, 27DT.-B. Con- 
chlta Marine*. Sprin. 262 fir 9. No Ma|oA 
Croatia, 2514 IX Amanda Coeazr, South 
Africa 1991; 11. Mary Pterca Prance. 19sa- 
IX Kotina Habsudava Slovakia 1B4X 11 
Ulna Splrtea. Romania 1765; 14 Mary Joe 
Femandez, U5. 1703: 15. Brando Schurtz- 
McCarthy, NeMertanda 1636. 


NBA Playoffs 


Japanssk Leabum 









594 — 





533 £fl 





59 X5 

Serin 37 38 22 21-100 

Houstea 19 33 19 23— M 

Sr Hawkins 0-15 3-3 2X Payton 8-175-8 21; 
H: Ototuwan 12-18 7-10 31, Dmter 9-16 58 
26. RslaaBiiH Sonttin 46 (Kemp 10), 
Houston 56(Boriday 3D). Assists— Seaflto2l 
(Poyton It), Houston 17 Kite®. 

(Hauston toads stales 3-Z) 

Attanta 27 U 24 24— 92 

CMcapp 33 27 If 2*— 107 

A: Loeltner 6-14 10-1223. BlavkKL8-171.T 
2ft C Jordan 9-23 5-5 24 6-1 9 3-3 15. 

ftslMMidi Affnnto 36 (Mutombo ig. 
Odcnoo 60 (WWana, Longtoy 10). 
Asstoto-Aflanta If (Btoykick B), Chicago 3! 
(Jordan. Ptppan 7). 

(Chicago wm twtas 4-U) 


1. Tom Lehman BS6590 points,- X Mark 
(TMeara 80155ft X Tiger woods SINUNia 4 
pm MldMtoon 65959ft 5. Scott Hoch 
64S580; 6. Brad Fason 64250ft 7. Davis Lave 
III 634000; & Steve Jana 579.2H& 9. Mark 
Brooks 5*9.750; 10. Tommy Tolies 54928ft 
11. Paul Stankamkl 47354ft IX DavtdDirvai 
47000ft IX Fred Couples 39BJUft 14 John 
Cook 37&D0ft 15. Kenny Perry 371550. 

T. Cokn Montgomerie, Scotland 343.977.49 
1 Barnhart Longer, Germany 339590JD 
1 Cnstontlno Rocca. Haiy 28256Z87 
4 Miguel Angel Martin, Spain 270,757.10 

5. Thomas Worn, Denmark 2641 43J0 

6. Ian Woasnaa Wotes 263-42406 

7. Darren Clarlia N.lntand 34LB3&.74 
X Lee Westwood, England 22X48449 
9, Pori Brawtourst, England 20483423 

IX Pm-UMk Johansson, Sweden 19461550 
11. Jose Mmfa Ohuabai. Spain 179521 M 
IX Penar Mircnefl, England 1 75,98553 
U Jean Von de vewe, Francs 17426X72 
14 Sam Torrance, Scotland 16409954 
15. Pndrtrtg Hantngnn. iratand 16347X20 

1 . Pete 5ampm u.s. 5,110 palms,- X 
Michael dang. U5. 1704 X Thomas 
Muster, Austria. 3,261; 4 Yevgeny Kafol- 
nftov, Russia. XOOfc X RkAard KraUcek, 
NritKtlanta 2581:4 Goran IwmlsevlGCioa- 
Ha, X 7 ift 7. Thomas EnavtsL S we den , XI 74 
X Canos Moya Spain, XI -U; 9. Maraelo Rios, 
dine, X072; TX Albert Cosla. Sprin. 1,93ft 11 . 
Wayne Ferreira. South Africa. 1564- IX FeO* 
MantBia, Sprin. 150; ix Barts Boaer, Ger- 
many. 1,764 14 Todd Martin, U5_ 157ft IX 
Ales Correfla. Spain, 155D. 


—Suspended New York Yankees owner 
George Steffibmner bam cound because of 
his lawsuit against motor league basebriL 
and suspended Yankees team from parilc- 
1 potion an any committee. 


Baltimore— V oided tho option Of RHP 
Rodqr Coppbperlo Rochester: lLand put Mm 
on 1 5-day disabled Bst irirooahte M May IX 
BOSTOH-Traded rhp Rick Trieekteitw 
New York Mels far RHP Toby Borland, 
at leAco- Put LHPTonyCastHto on 15-day 

disabled Hsr. RecaOod RHP Man Korctmer 
from NoshvUla aa. 

Cleveland— A greed to terras with Mike 
Hargrave, manager, an 2-yoar contr uc l ex- 

Detroit— P urchased the contraa of RHP 
Tim Pugh from Toledo, IL. Transferred inf 
O rlando Minor (rant 15-day 10 60-day cte_ 
abled list. 

KANSAS a ty— R eleased LHP Milch 
wnflams. Recalled LHP ABen McOiu tram 
Omaha aa. 

mew vork— R ecalled OF Scott Pose Iram 
Columbus IL Put 2B Pai Kelly on 15-day 
dhntNod Dst retraocilvc » May la 

Oakland— R ecoded RHP Canos Reyes 
from Edmonton. PCL OpHoned RHP Mark 
Aoe to Edmonton. 

Texas— P ul RHPRogar Pavlik anlS-daydls. 
abled list ref raactlve to May 7. Recoiled RHP 

Malt Whilaside Iram OMohama aty, AA. 


LOS ANGELES— Put rhp Damn Dretfarr on 
IS^toy disabled Rsl. Recalled RHP Antonia 
Ornna from Aibuquerqua PCL 

hew York — O ptioned LHP Ricardo Jordan 

ST. Louis— Sent RHP Rich Batchelor la 
Larisvate, AA- Optioned LHP Tom McGraw to 
LouhvOto. Pwchased Ihe contract of OF Mle- 
ah FrankSn ham Lorisvflle. Activated LHP 

Lanoc Printer tram the 15-day disatilQdllst 

5AN DI6G0— Put 3B Ken Co nunm on 15-day 
dtsabted list retraacitve loMay IX Acnvaied 
IB Wally Javner and INF Craig Shipley from 
tho 15-day disabled list Opltgned IQ Oerrek 
Leo to Las vegas, PCL 



hra— F ined Chicago C Brian WMann 
XS4XX) far making obseone gesture after tout- 
ing ouf of May Tim game. 

PORTLAND— Named Mike Dunieavy coach. 



AMZONA-Wpfved TE Sharrod Jam. 

JACHSPNVIUE-HiMdflned OL Greg Hunt- 

Kansas eiTv— $lgnod 0B Pat Bamas 10 3- 

year canlract Released DB Mark Colllni*^ 

WRTwfSSSf CB JohrB " 

wr Tyrone wnikuns. ■ sc, 

"SWUWLEAM-Rfroigned RB Derek Br/ff 
to l-yearcomrect. Released G Chudc BeOnf 
OMCLAND-^MiBned s Lorenzo Lynch 
ond signed TE Kevin Smith. 1 

Signed LB Lew Bush to 4-rear 

treo. Reteasod LS Chris Cowart andOB John 

TwniRusseB and OT Darryl Astanare. -*-4 

*£“" TO-SlDned RB demons to 
mufttyear contract. 

national hockey leaoue - I 

C Wayne Primeaa 

ond D Jay McKee to Rochester. AHL - 

KF^md LW Joe Hriblg to HarriUmv AHL . 
A^^^^T-Avslgned LW Pohflc EiSttb 

the contract of 
rr nc-^j 0 *^' 5enfln31 •"onager, wn nat-btr 

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•SSSS" "*• — -dt 

coach, so 

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m Inellglwepkiyer. 

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™~~ SPORTS ~ 

PAGE 23 

Ifyder Cup Hopefuls Raring Up 


Vantage Point/l ah Thommwh 

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2 Ti>. s. 'Xhtitndt 

International Herald Tribune 

W ARE, England — In America, 
they come out by the thou- 
sands cm a day like this. Not so 

for the English Open, a PGA European 
Tour event held just a few miles north of 

< Manyof the top players in Europe are 
playing in this pro-am without scrutiny, 
public noise or any of the other in- 
trusions that make their jobs so difficult 
and profitable. 

But think ahead to four months from 
opw, when the 12 best European players 
will be in Valdecrama, Spain, for the 
Johnnie Walker Ryder Cup. the biennial 
team competition against die Americ- 
an. By then, every day of practice will 
teas cat ivded as the biggest tournament 
Weekends in Europe. Such pressures 
ft&e hard to imagine on a peaceful, 
splendid Wednesday on the verge of the 
English summer. 

■ '’“The Ryder Cup is like die Olympics 
for us,” raid Miguel Angel Martin, a 
3£year-old Spaniard who seems well 
1 *® honed to make his first Ryder Cup 
ajyearance. “A lot of players are think- 
ing about being on the Ryder Cup 

‘ ‘ft cannot be an entirely pleasant am- 
bxfion. The top 10 European money- 
whiners over a 12-month period ending 
in August will qualify for the team auto- 
matically. Another two players — one 
of them likely to be Nick Faldo, who is 
playing on the U.S. Tour — will be 
aided to the team by its captain, Seve 

Ballesteros. At the moment, it is looking 
as if the famous names of Colin Mont- 
gomerie (first in the current European 
team standings), Bernhard Langer 
(second), Costanfino Rocca (third), Ian 
Woosnam (sixth) and Jose-Maria 
Olazabal (11th) will play their way onto 
the team. 

Joining them will be some Ryder Cup 
rookies, players who up to now have 
only seen the tournament on television. 
Martin is fourth in the current standings. 
Thomas Bjorn, who would become the 
first Dane to play in the Ryder Cup. is 
placed fifth. 

“I really don't want to think about it 
right now,” said Bjom, 26, wbo was the 
European rookie of the year last year. 
“As soon as I know I’m there, then Fll 
go to players who have played in it and 
talk to them about what it will be tike 
and learn how to pr ep are for it. Until 
then. I want to enjoy the tournaments 
I'm playing.” 

B UT HE IS thinking about it. After 
missing almost two months with 
a stiff neck, Bjom has played the 
last four weeks and plans to Keep play- 
ing for an additional seven weeks In 
succession — a grueling three-month 
run of tournaments through France, 
Spain, Italy, Britain, Germany and 
America (for die U-S. Open) which he 
hopes will validate his place on the 
Ryder Cup team. 

Bjom grew up playing in a golfing 
family in Jutland. Hie won four tunes in 

199S on the European minor-league 
Challenge Tour. His PGA victory came 
serendipitously at the Loch Lomond 
World Invitational last September, just 
four weeks into the Ryder Cup points 
campaign. He said a Joey for Urn was 
staying confident at golfs highest level. 

“As a player, you try to stick to your 
game, build up your form for the week, 
and if you’re in good form you’re not 
going to be that nervous," be said. 

Martin is in contention largely be- 
cause of his victory last January at the 
Heineken Classi c in Australia. To as- 
sure his place in the team over the next 
three ana a half Drouths, Martin will 
probably need to earn at least another 
5100,000, which is the equivalent of a 
second-place finish. 

There can be no imagining what die 
week might be like for him— - a Span- 
iard debating in the first Ryder Cup to be 
held in Spain. Martin grew up candying 
at a private club in Madrid where he 
wasn’t allowed to play the course. He 
didn’t play on a decent course regularly 
until he tinned professional at 18. 

His first club was a 9-inn, and with 
friends he would play creatively in the 
open fields and woods near his parents' 
home. He used to be in die galleries 
when Ballesteros would come to play 

tfMiT Tumwn ty m M»drid . 

In four months Ballesteros, his hero, ‘ 
might well become his eg ptain, Martin 
put his fists together and tinned them, to 
indicate how his stomach might feel 
next September at Valdecrama. “I like 
this terrible feeling,” he said. “I would 
like to have the terrible feelings in order 
to play the Ryder Cup and win.” 

Stnoo Irhirfi Ii ~ i ~ l | j nm Kmra Pfrmn 

Florida’s Ralph Milliard sliding home behind Atlanta catcher Javier Lopez after a sacrifice by Edgar Renteria. 

Grand Slam Ends Bonilla’s Drought 

Woods Speaks Out 

Some Empathy for Fuzzy Zoeller; 
A Rebuke for President Clinton 

By Joe Drape 

New YorkTbnes Service 

■ • 7’? £ 70 jtw, 

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"IRVING, Texas — He is 
youngest Masters cham- 
j^bn ever, pop culture's latest 
ie&u, and he’s finally rooken 
y& About the Fozay Zoeller 
flap. About declining to ap- 
pear with President Bill Qin- 
ttitt at the Jackie Rolanson 
tribute at Shea Stadium. 
About the whole dizzying life 
of- Tiger in the wake of his 
iebord 12-shot victory. 

^ Woods had more forgiving 
rfords for Zoeller than Ire did 
for- Clinton. Woods said he 
looked forward to having a 
heart-to-heart talk with 
atelier.-—'- ■'*' 
t^WoddS intends to find out ■ 
exactly- what Zoeller meant 
hf-wfaat were perceived as 
riteSally insensitive comments 
about Woods’s menu selec- 
tioos for the Masters cham- 
flfon’s dinner next year. At 
fifst. Woods said he did not 
vAht to remand at all, but he 
issued a statement after the 
fator dragged on. 

£**“I didn’t dig myself into a 
Bfle,” Woods said. “I got 
myself drawn into it” 
(•-Woods has drawn fire for 
jome insensitive jokes attrib- 
uted .to him about Macks and 
lesbians . Much were pnb- 
fohed in GQ magazine. He 
that he made those com- 

ments privately to a lim- 
ousine driver, not in front of 
cameras like Zoeller did. 

4 'I paid a price yes, but not 
to the degree of what Fuzzy 
went through,” be said. 

But Woods made it dear he 
was hardly repentant for turn- 
ing down Clinton’s invitation 
to appear with him at the Shea 
Stadium celebration of the 
50th anniversary of Robin- 
son's integrating baseball. 

“One, I had planned my 
vacation; it was set,” Woods 
said. “And two, why didn’t 
Mr. Clinton invite me before 
the Masters? That didn’t hap- 
pen. As soon as I won. he 
mvited me. - 

•' ’• “If he wanted me there, I 
think it would have been best 
if he would have asked me 
before the Masters with all the 
other athletes that were in- 
volved.” . 

Woods, 21, was relaxed 
and upbeat during the nearly 
hourlong news conference 
Tuesday before more than 
200 reporters, some from as 
far away as Japan. 

In the month since his his- 
toric Masters victory. Woods 
said he has tried to balance 
having fhn with the time-con- 
- aiming demands of running 
what has basically become a 
one-man earning conglomer- 
ate. He played golf with new 
friends and mentors, Michael 

Tiger Woods, the Masters champion, pondering a 
question during a press conference in Irving, Texas. 

Jordan and Kevin Costner. He 
sat for interviews with Oprah 
Winfrey and Barbara Walters. 
He attended business meeting 
a^yh arinew 

“Whew, you wooldnot be- 
lieve, I mean the demands on 
my time have grown expo- 

nentially,” he said. “Fvehad 
to learn the magic word of no, 
and say it as nice as possible. 

“It’s hard because people, 
in my opinion, fafl to realize 
why Tm out here,” be said. 
“Fm out here to try to win 

The Associated Press 

ATLANTA — Bobby Bo nilla hit a 
grand slam his first hnmKr in 49 
to MghKg hf a seven-run fourth inning 
that carried the Florida Marlins to a 11- 
5 victory over the Atlanta Braves in a 
matchup of the top teams in the NL 

Bonilla, whose last homer came on 
Sept 15, 1996, when he was still with 
Baltimore, had gone 129 at-bats tins 

season without one before he drove a 
pitch deep into the right-field stands 
against Paul Byrd. 

The Marlins, who had only 26 homers 
in ibeir first 37 games, took advantage 
of a break in the Braves' rotation on 
Tuesday night to snap out of their power 
drought and cut the Braves* lead in the 
East to four games. 

Tom Glavme missed his first start 
since Sept 15, 1992. because of a left 
hand that was still sore fro m being hit by 
a pink while he was baiting against the 
Marlins last week. Terrell Wade (1-3) 
took Glavine’s spot and took the loss. 

Rookie Tony Saunders (2-1) beat the 
Braves for the second time in a week, 
allowing only five hits in seven in- 
nings.’- • 

Mats 4, Astro* 3 Butch Huskey’s solo 
homer in the seventh inning snapped a 
3-3 tie and lifted host New York to its 
fourth straight victory. 

New York starter Armando Reynoso 
hit his third career homer as the Mets 
won for the 12th time in 16 games. 

Huskey, who has four homers in his 
last six games, fait a 1-1 pitch from Russ 
Springer (1-1) into the lrit-fiekl bullpen. 

Sean Berry horoered for the Astros, 
who have dropped three straight and six 
of theirlasteighL 

Expoa t, Mm3 Pedro Martinez im- 
proved to 6-0 with his second complete 
game of tiie season. 

Martinez, who entered with a major- 
league-leading 0.50 earned ran average, 
allowed th re e run s — two earned — and 
11 hits. The right-hander stuck out sev- 

en, walked none and saw his ERA rise 
slightly to 0.79. 

Henry Rodriguez hit a three-run 
homer, and Ronoell White went 3-for-4 
with three RBls as host Montreal won 
for the fourth time in six games. 

PWki 3, 2 In Philadelphia. 

Scott Rolen’s two-nm triple highlighted a 
three-run eighth inning for the Phillies. 

St Louis starter Andy Benes blanked 
Philadelphia for seven innings before 
the Cardinals’ bullpen blew it 

Philadelphia starter Garrett Stephen- 
son allowed just two hits and struck out 
12 in seven inning* of his first major- 
league start 

Cubs 2 , Dodge r s i Sammy Sosa hit a 
two-run homer with two outs in the 
eighth inning for host Chicago. 

Trailing 1-0 in the eighth, Mark 
Grace walked against Pedro Astario (3- 
1) and Sosa followed by hitting a 2-0 
pitch over the center-field wall for his 
sixth homer. 

. Turk Wendell (1-2) picked up the 
victory with one scoreless inning. 

Oianta 4, Rada 1 Jeff Kent hit his 
second grand slam of the season, and 
Shawn Estes pitched 7 16 strong innings 
fm visiting San Francisco. 

Kent hit his eighth homer of the year 
as the Giants won their third straight to 
stay atop the NL West. 

In the American League: 

Oviolaa 7, Athletics 3 B J. Sarhoff had 
a two-run homer and a two-run double, 
giving him 11 RBIs in his last three 
games, as Baltimore def eat ed the A’s in 

Surhoff, who bunted for a single in 
the second, had a bases-loaded double in 
the third and irit his fourth homer of the 
season in the fifth. He went 3-for-4 and 
has two or more hits in eight of his last 
13 games. 

MDce Mussina (5-1) allowed three 
runs on six hits in six innings as Bal- 
timore improved to 25-1 1, the best re- 
cord in the AL. 

Mariners 3, Drawers 1 Jay Bllhner’s 
two-run, ninth-inning single off Mike 
Fetters lifted visiting Seattle. 

Buhner's hit was just the Mariners’ 

third and it made a winner of Randy 
Johnson (5-1), who gave up six hits in 
eight innings. 

Royals Red Sox o Tim Belcher re- 
tired tite first 15 barters and finished 
with a two-hitter as host Kansas City 
routed slumping Boston, which has lost 
five straight and nine of its last 10. 

Belcher (5-3) lowered his ERA to an 
AL-best 1.72, stretched his scoreless- 
inning streak to 19. and faced only three 
batters over the minimum. He has 
pitched three complete games in his last 
four starts. 

’Tigers 4, Hue Jays O Felipe Lira 
pitched a four-hitter, and Bob Hamelin 
homered twice as host Detroit beat 

Lira (2-2) won his second straight 
game after losing his previous nine de- 
cisions. He gave up four singles, walked 
one and had a career-high 10 

Yankees 11, Twins 2 Tino Martinez 
became only Che third Yankee to lift 15 
homers in the first 40 games, hitting a 
two-run shot in New York’s victory 
over host Minnesota. 

Martinez hit a 415-foot homer off 
reliever Kevin Jarvis in the sixth inning, 
when New York scored seven runs. He 
joined Babe Ruth (four times) and 
Mickey Mantle (1956) as the only Yan- 
kee sluggers to start a season so 

Indiana 7, flangara 3 Matt Williams 
hit a tie-breaking homer in the sixth 
inning as visiting Cleveland stopped a 
three-game losing skid. 

Williams’ 10th homer of the season 
allowed the Indians to complete a 
comeback after trailing 3-0. 

Angela B, White Sex 7 The Angels, 
who scored a club-record 13 runs in one 
inning tite previous night, scored seven 
in the thir d hming to beat the visiting 
White Sox. 

The first nine Anaheim batters 
reached base during the rally, which 
turned a 3-0 deficit into a 7-3 lead 
against James Baldwin (1-5). Luis 
Alicea put the Angels ahead to slay with 
a two-nm double. 

PAGE 24 



Machines Get Uppity 

walked into my office 

YY walked into my office 
die other morning and found 
all the computers flashing and 

I went over to mine and hit 
the keyboard. 

"What’s up?” 

The computer replied, 
"We won, we won. We beat 
the son of a gun.” 

I suddenly remembered 
that on Sunday the computer 
Deep Blue beat 
the Russian 
world champi- 
on Garry Kas- 
parov, and 
once again hu- 
man beings 
took a nose- 
dive thanks to 

I typed in, 

"It wasn’t a computer, but 
1 00 chess masters hired at $20 
an hour by IBM which made 

the difference. Where is the 
sportsmanship that computers 
are supposed to show when 
humanity has a bad day?” ■ 
The computer sent goldfish 
sw imming across die screen. 

Russia’s ‘Primary Colors,’ 
With Yel Tsin and Tan Yel 

By Alessandra Stanley 

New York Tima Service 

My computer replied by 
voice, "WE had billions of 
options — Kasparov had 
nothing but a few moves in 
his head. That’s what makes 
computers superior to man ” 

"But,” I protested, “it 
wasn’t a computer, but all the 
options feeding the computer 
that brought the greatest 
chess player in history to his 
knees — that and the noise of 
die floppy disk when it was 
making backups of the 

My computer replied, 
"The computer was silent 
when it stuck it to Kasparov. 
If you want to know the truth, 
the reason Kasparov lost was 
he kept putting his hrari in his 
hands with his elbows on the 


No Transfer 
For ‘Guernica’ 

M OSCOW — 11b re-election 
of President Boris Yeltsin 

The Associated Press 

M ADRID, Spain — Picas- 
so’s masterpiece "Guer- 

lYlso’s masterpiece "Guer- 
nica” wifl not be moved to the 
new Bilbao Guggenheim in 
northern Spain despite pres- 
sure from Basque groups, the 
Reina Sofia Museum has an- 

Reina Sofia officials said 
that the delicate state of the 
60-year-old painting pre- 
cluded it from being trans- 
ferred to another museum. 

The Bilbao Guggenheim, 
built at a cost of $171 mini on, 
had requested that "Guer- 
nica” be loaned or perman- 
ently moved to the museum 
for its Oct 3 opening. 

The black-and-white mural 
imm ortalized the 1937 Nazi 
bombing of Guernica, a town 
near the industrial city of Bil- 

Deep Blue was shocked by 
the Russian’s bad manners. 
The difference between Man 
and Machine is that com- 
puters never put their elbows 
on the table. 

“IBM put the elbows in 
Deep Blue's memory and that 
is all Deep Blue needed to 
know about where Kasparov 
would move next” 

I typed. "But you're gloat- 
ing. Every machine in this 
office feels superior and that 
is not good for those of us 
who consider computers our 

My computer said, "Vince 
Lombardi, the famous coach, 
once tapped into his laptop 
computer, ‘Winning is ev- 
erything,’ and somehow it got 
into Kasparov's e-mail mid 
psyched him for tile rest of the 

over his Communist challenger last 
year was a pivotal moment m Rus- 
sia’s rocky transition to democ- 
racy. So it is not surprising that a 
roman & clef about thar no-holds- 
barred campaign should follow. 

A new novel, "China Lane,” 
which purports to be the Russian 
version of “Primary Colors,” has 
just arrived in bookstores. Among 
the sinister players maneuvering be- 
hind the Kremlin c a mpaign 
are corrupt, mob-tied government 
officials and political advisers, -ruth- 
less Russian and American busi- 
nessmen ami tiie president's daugh- 
ter, "Tan YeL” 

Yeltsin’s daughter Tatiana Dy- 
achenko, who helped run the cam- 
paign in real life, continues to play 
a powerful, if veiled, role in tire 
Kremlin. Shady businessmen and 
corrupt officials helped re-elect 
Yeltsin and are backing his policies 
to this day. The novel’s baroque 
plot and one-dimensional charac- 
ters are based, however loosely, on 
real events and real people. The 
book is pulp fiction, but steeped in 
unflattering facts. 

In the early 1990s, the Russian 
publishing world was in tatters 
after the collapse of the Soviet sys- 
tem, and most thrillers were trans- 
lated — and often pirated — ver- 
sions of English-language best- 
selling authors like Ken Follett or 
John Grisham. Nowadays, Russian 
authors dominate the market. 

The best-selling fiction writer 
today is Viktor Dysenko, the Rus- 
sian king of pulp. He writes Ram bo- 
style action-adventure novels for 
■ tire new monied classes — mostly 
young men in fancy cars and leather 
jackets. He has sold more than 5 
million copies of his seven novels. 

In Dysenko ’s black-and-white 

world view, tire Russian govern- 
ment is the good guy; the bad guys 
are the Central Intelligence Agen- 
cy, international terrorism, and thar 
eternal bete noire of the Slavs, 

"China Lane” is a novel that 
tries to dramatize the collusion of 
money and corruption inside tire 
Kre mlin — one of tire more pre- 
valent fo rms of crime in Russia 
today. Though tire author, Eduard 
Topol, refers to his book as a 
"Primary Colors,” one key dif- 
ference between "China Lane” 
and the fictionalized account of tire 
1992 Clinton campaign is that un- 
like Joe Klein, Topol, a well-known 

novelist whose 1983 thriller about 
Soviet corruption, "Red Square,” 
was an international best seller, 
never tried to remain anonymous. 

Topol, 58, immigrated to tire 
United States 1 9 years ago and lives 
in New York. Now, for the first 
time, be has focused on 01 doings in 
cont e mporary Russia. And his ver- 
sion includes one plot twist in par- 
ticular intended to make tire pres- 
ident and his men, and his daughter, 
uncomfortable. In tire novel, tire re- 
election campaign of President Yel 
Tsin is going nowhere until two 
shady American businessmen, in 
Russia to sell government officials 
bulletproof Lamborghinis, decide 
■that their only hope of closing a deal 
is helping the incompetent Russian 
campaign staff defeat the commu- 
nist challenger. Zyu Gan, based on 
tire real-life communist leader Gen- 
nadi Zyuganov. (The novel is coyly 
set in a mythical China, allowing 
tire author to give famous people 
thinly disguised Chinese-sounding 
pseudonyms. Prime Minister Vikt- 
or Chernomyrdin, for example, is 
Cher Myr Din.) 

The American businessmen- 
tumed -campaign-strategists are 
loosely based on a team of Cali- 
fornia political consultants who 
were hired in tire spring of 1996 by 

Tatiana Dyachenko to conduct fo- 
cus groups and polling. The Amer- 
ican consultants worked in secret, 
isolated from tire rest of tire cam- 
paign staff, political reporters, and 
TopoL, who spent seven months in 
Moscow soaking up atmosphere 
for bis novel. ‘T was astonished 
when I read about them in Time 
magazine.” Topol said. "But once 
I did. the plot of my novel instantly 
became clear.” 

Among tire villains is the chief of 
presidential security, Sos Kor 
Tsen, a compilation of Yeltsin’s 
real-life and now ousted chief of 
security, Alexander Korzhakov, 
and another ousted top aide, Oleg 
Soskovets. Sos Kor Tsen wants to 
sabotage the elections, and he also 
wants to erase traces of all tire state 
money he has embezzled and put 
into secret Swiss b ank accounts. 

Boris Berezovsky, a news media 
and oil tycoon who helped finance 
Yeltsin’s campaign and is now 
deputy chairman of tire National 
Secmnty Council appears in tire 
book as the billionaire Boris Bern, 
chairman of Beria Bank (a not very 
flattering allusion to Lavrenti Ber- 
ia, Stalin’s feared police chief). 

Echoing a real assassination at- 
tempt on Berezovsky in 1994, Bor- 
is Bere’s car is blown up but he 
survives. According to tire novel 
he was attacked as a warning to 
other top Russian bankers by Sos 
Kor Tsen, who wants to extort $40 
million from each of them to pay 
off striking miners. 

Yet with all the secret Swiss bank 
accounts, killings, and skulduggery, 
tire one real-life scandal that briefly 
flared toward the end of the cam- 
paign is not recreated in the novel 

Last June, two top advisers to 
Deputy Prime Minister Anatoly 
Chubais, who was then tire Yeltsin 
campaign's chief strategist and 
fund-raiser, were arrested by Kor- 

r s a 


_ . i 

By R.W. Appj iff: 

\r» }:*** 7*Wr'Sfi*4ifip 

■ — ■'"TTTi vr. rt — The<Jeo**»* 




Novelist Eduard Topol, who wrote “China Lane.” 

out of a government building. At Charges against them were quietly 
tire time, Chubais painted the epis- ' ■ ' ” " ‘ 

zhakov’s security guards as they 
tried to smuggle $500,000 in cash 

tire time, Chubais painted the epis- 
ode as an attempt by his rival 
Korzhakov to discredit his staff and 
sabotage tire elections, and he per- 
suaded Yeltsin to dismiss 

Where tire money came from 
and what Chubais’s men were do- 
ing with it was never explained. 

dropped earlier this year. 
In today’s Russia, some 

In today’s Russia, some facts are 
apparently still too dangerous to 
fictionalize. "I know where the 
$500,000 came from, but I can’t 
say,” Topol said. "People get 
killed over things like this. It’s 
too dan goons a topic even' for a 



mc3 : . CC 1 ’ ? 

S1UCT' Z-:*: 


of her two-hour 

.filmed portrait of Marcello Mas- 

troianni at tire Cannes film festival 
Anna Maria Tato was in a fighting 
mood, defending her legal rights to con- 
trol tire marketing of the Italian actor’s 
legacy. Tato’s film, "Miricordosiiomi 
ricordo,” has fueled an ugly dispute. 
Tafo, wire was Mastroianm’s co mp a n ion 
during tire last 22 years of his life, set off 
a storm in March, three months after he 
died, by telling Variety that a codicil to 
Ms wiD gave her control over his artistic 
legacy. The French actress Catherine 
Deneuve, industry sources say, unsuc- 
cessfully pressured Cannes organizers to 
keep Tato’s film out of the festival Tato 
is a feature film director who has made 
documentaries on Woody Allen and 
Vittorio Gassman, among others. 

bone Magistrate Coortfor possessing the 
gun and for making threats when a po- 
liceman tried to arrest him outside a store 
in west London last October. 

Aady KwnTTV Anoculcd Pwb 

KEYNOTER — Bill Cosby telling a joke to graduates of the University 
of California at Berkeley, where he was a commencement speaker. 

Pop star Mark Mormon Wednesday 
was sent to jail for three months in Lon- 
don for threatening a policeman with an 
electric stun gun. The 24-year-old singer 
for Return of tire Made, was given three- 
month concurrent sentences at Maryle- 

Jodie Foster lashed out at her brother 
ova- anew book in which he claims his 
mother had a romance with another 
woman and says he always “assumed” 
his sister was gay or bisexual. ‘ ‘I feel sad 
forhim,” the actress said in a newspaper 
interview. "Mostly I feel sad for my 69- 
year-old mother, who has spent her life 
struggling to raise four children on her 
own with dignity and strength of char- 
acter.” In Ms book “Foster Child.” 
Buddy Forfer wrote: "I have always 
assumed Jodie was gay or bisexual” but 
noted she has had "love affairs with men 
all her life.” Foster said the book is a 
"cheap ay for attention and money.” 

in Ms soil that he was fired after claiming 
Jackson executives tried to cover up 
Jackson's alleged sexual encounters with 
a teenage boy. Jackson settled a civil 
lawsuit with the boy out of court, re- 
portedly paying more Man $15 million. 

edge you as the leader in almost 
everything in tire information technol- 
ogy field.” But he added, "You can’t 
have it all your own way. I think that you 
acknowledge that Britain is the world . 
leader in ente rtainmen t software sod 
virtual reality.” 

n* flfrJw 
rated t* 

Paul McCartney, who celebrates Ms 
55th birthday next month, marked tire 
release of his first solo album in four 
years by appearing in a documditaiy. 
The Beatles drummer, Ringo Starr, 
and their producer, George Martin, 
joined him for “Flaming Pie” with 
guest appearances tty McCartney’s phd- 
tographer wife, Linda, now recovering 
from breast cancer. The documentary, 
which was screened at a news confer- 
ence in London, revealed that McCart- 
ney is making a cartoon, writing a sym- 
phony and trying Ms hand at painting. 

John Heard was sentenced to 18 
months’ probation for making 100 tele- 
phone calls to harass the mtxher of hiis 9- 

year-Qld ton. The actor, best known as 
Macaulay Calkin’s father in tire 

Macaulay Calkin’s father in tire 
“Home Alone” movies, was convicted 
in March of telephone misuse and tres- 
passing in tire case brought by actress 
Melissa Leo of NBC’s “Homicide.” 

r - 'ttoK 

A former security guard’s wrongful 
termination lawsuit against Michael 
Jackson has been rejected by a Cali- 
fornia judge. Jerome Johnson had stated 

Prince Andrew slipped into Silicon 
Valley with little pomp or circumstance 
for a computer conference. He praised 
American know-how: "We acknowl- 

The British dancer-choreograph® - 
Christopher Wheddon, 23, and coott 
poser Stefon Harris, 22, received 
$5,000 Martin E. Segal awards at a 
ceremony at Lincoln Center in New 
York. The award was established in 
1 986 by friends of Segal when he retired 
as tire center’s chairman. 

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