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Herali* 


INTERNATIONAL 



tribune 


PUBLISHED WITH THE NEW YORK TIMES AND THE WASHINGTOPUPOST 


The World’s Daily Newspaper 


London, Thursday, May 22 , 1997 



No. 3S.527 


The Rules of Business Are Growing Hazy in Ho 

Here’s a Deal That Nobody Wants to Refuse 



ong 

For ‘Red-Chip’ Companies, Murky Financing 


Bloomberg News 

witariTA KONG — Yiu Him. a retired cook, 

7S£mlE£ buy SIOCks - He -» <» 

Mr. Yiu is among tens of thousands of Hone 
'■ Kong [residents who have flocked to local broker- 
ages this week hoping to be among the lucky few 
“j*"* city S^emmenfs 

Beijing Enterprises Holdings Ltd. — the in- 
V ^ me ^L^ m Rf.*® Be U“ig city government — is 
I- .selling $24 million worth of shares to individual 
investors in its initial pubUc offer, or IPO. By the 
tune the dust clears from the investor stampede the 
Jjiare sale is expected to draw at least 1,000 times 
that amount m applications and could become the 


most popular stock sale in Hong Kong history. 

The IPO mania — underwriters printed enough 
application forms for one in four Hong Kong 
adults — will strain the territory's banking system 
as investors transfer funds from bank accounts to 
pay the application deposit The big winner could 
be the company itself, which stands to pocket a 
week's interest on $35 billion or more simply by 
depositing proceeds from excess applications be- 
fore they are refunded. 

Few investors seem to know, or care, much about 

ts. 

I percent 

of China's biggest brewery,’ Yanjing Brewery, a 


By Philip Segal 

Spmal to rhe Herald Tribune 


A bn ui TbdiiAd jm.ui w aiivn, m mu., U 1UUI OUUUI Hr * 

Beijing Enterprises' business or profit prospects, phen 
Among other things, the company owns 80 percent Ltd. 


HONG KONG — Buy now, pay later is a time- 
honored formula that works when buying fur- 
niture, home electronics and now, blue-chip Hong 
Kong companies — at least if die buyer is a 
Chinese state company. 

A week after a low-profile Chinese company 
stunned Hong Kong when it said it would spend 
$1.47 billion for a stake in the territory's largest 
’ one company, Hongkong Telecommunications 
' . analysts and economists were still ata loss as 


See DEAL, Page 6 



three public 


Hong Kong have a combined market value of 
only $268 million. 

‘*1 can’t remember anything of this magnitude' * 
in Hong Kong, said Abhijit Chakrabortti. strategist 
at Lehman Brothers, “which is so mysterious.” 

There may be more such deals to come. Ana- 
lysts seemed to agree that acquisitions of highly 
liquid public companies in Hong Kong by Chinese 
companies would become more common. 

“This is the real worry for Hong Kong's future: 
the lack of transparency in commercial trans- 
actions,” said the head of sales at a European 
brokerage, who asked not to be identified. 

His complaint was that with no financing lined 

See HONG KONG, Page 6 


As Presidential Campaign Ends in Iran . . . 


. . . Electoral Tension Heats Up in Indonesia 



A^eae* France -Pra» 


Tbe Ajeocuaad Rms< 


I ranians were to go to the polls Friday to decide a four-way race for president. In what As Indonesians prepared for parliamentary elections May 29, the military blamed the far left for 
4s by far the most competitive election to be held since the 1979 revolution. Page 6. campaign violence, but opposition activists said rigid political controls caused the unrest. Page 4. 

Burma Is Said to Arrest Dissidents as U.S. Sanctions Take Hold 


By Seth My dans 

New York Times Service 


BANGKOK i — As an American ban on new 
investments in Burma took effect Wednesday, 
reports emerged of a new wave of arrests of 
members of the pro-democracy movement of Daw 
Aung San Suu Kyi. 

The U.S. sanctions, intended to punish the mil- 
itary government for human rights, abuses, were 
announced a month ago and signed into law Tues- 
day. In announcing the action. President Bill Clin- 


ton said it came in response to increased political 
repression and Banna's continued production of 
opium and heroin. 

The imposition of sanctions drew a stubborn 
response both from Burma’s military leaders and 
from officials of neighboring nations, which are to 
decide at the end of the month whether to admit 
Burma into the Association of South East Asian 
Nations. 

“Since Myanmar is walking on a straight line 
toward her noble goal, there is no reason to deviate 
from its original path to serve the interest of a 


foreign government,” the government said in a 
statement last month. 

The London-based human rights group Amnesty 
International said Wednesday fiat at least 50 mem- 
bers of Daw Aung San Suu Kyi’s party, the Na- 
tional League for Democracy, had been detained. 

Foreign diplomats in the capital, Rangoon, con- 
firmed by telephone that arrests were taking place in 
several cities. An opposition party official told The 
Associated Press that the arrests had begun Monday 
and that a number of party members were taking 
refuge in Daw Aung San Suu Kyi's compound. 


The arrests appeared to be an attempt to block a 
congress of the National League for Democracy 
planned for next week to mark the seventh an- 
niversary of parliamentary elections in which the 
party won more than 80 percent of the seals. The 
ruling junta refused to honor the result. 

A similar round of arrests took place a year ago 
in advance of similar plans for a party congress. At 
that time, government officials said 262 party 
delegates were detained. Most were released 
shortly afterward, but more than 20 were tried and 
sentenced to prison terms. 


Technology 
Leads Way 
As U.S. Cuts • 
Trade Gap 

Plane Sales to China 
Push Performance 
To a Monthly Record 

By Mitchell Martin 

International Herald Tribune 

NEW YORK — The U.S. trade def- 
icit unexpectedly narrowed in March as 
exports hit a monthly record, the gov- 
ernment reported Wednesday, and ana- 
lysts said the performance reflected 
America's success in selling airplanes 
and other high-technology goods. 

The deficit shrank to $8.5 billion in 
March from $10J5 billion in February. 
March exports rose to $76.5 billion from 
$73 5 billion a month earlier, while im- 
ports also reached a record, $85 billion, 
up from $84 billion. 

Much of the increase reflected the 
sale of aircraft to China. The overall 
deficit with China fell to $2.6 billion in 
March from $3.3 billion. Although ana- 
lysts said the trend of widening U.S. 

The U.S. economy appears to be 
slowing. Page 11. 

trade deficits with China remained in 
place, the nearly $1 billion a month in 
American exports underlined the im- 
portance of the country as a market for 
U.S. goods. 

President Bill Clinton this week said 
he intended to renew China's most- 
favored-nation trading status. That ac- 
tion had been expected despite ques- 
tions about the country’s record on hu- 
man rights. 

In the aircraft sector, the rivalry be- 
tween Boeing Co. and Airbus Industrie 
was highlighted last week when China 
agreed to buy $1.5 billion of planes fronr 
the European consortium. 

Many analysts had been predicting a 
double-digit trade gap in March, and 
because of the narrowing, the Com- 
merce Department is likely to revise its 
estimate for first-quarter economic 
growth upward from the torrid 5.6 an- 
nual percent rate previously reported, 
Everett Ehrlich, undersecretary of com- 
merce, told The Associated Press. 

That put some pressure on the U.S. 
financial markets, which remain con- 
cerned that the Federal Reserve Board 
would raise rates to combat inflationary 
pressures brought on by faster growth 
than the American economy can ac- 
commodate. 

Overall, however, the March trade 

See TRADE, Page 6 


The Good Old Bad Days 

Russia Awash in Nostalgia After Swift Change 


By David Hoffman 

Washington Past Service 


• MOSCOW — For Nadia Avenari- 
ous, a teacher, an evening on Russian 
■television offers a host of choices, from 
.the soap operas “Santa Barbara" and 
'“Dynasty,” to the game show “Name 
That Tune,” to such crime thrillers as 
> ‘Escape” and horror films like * ‘Night- 
mare on Elm Street” 

• But Miss Avenarious said she would 
much rather watch “Spring on Zarech- 
naya Street," a 1956 Soviet-era classic 
about a beautiful young literature^ teach- 
er who goes to work in a bleak industrial 
town and falls in love with the hero, a 
simple factory worker. 

; The film, produced just as tte; post- 
‘Stalin period known as “the Tbaiv 
;was beginning, is deeply evocative ot 
=young workers striving to improve 
tbemlelves, imbued with ihe valii^ of 
“Trdlabor and optimism for the future. 

“I can rest; die film calms me 
down,” she said. 

“There are no monsters, no vam- 
pires. no murders. Arnold 
fficeeeer? I'm not even able to waten 
^We had enough blood m 
Chechnya, enough violence in the pa- 

WffiS life was hard then, but there 
old films are a way out of a dead 

eD The Soviet era has passed, but its 


legacy in movies remains at the fore- 
front of contemporary Russian society. 
According to surveys, old Soviet 
movies are among the most watched 
programs .on Russian television. Their 
re a ppe ara nce on the airwaves in the last 
few years is indicative of a deeper wave 
of nostalgia for aspects of Soviet life 
that has enveloped Russia. 

The nostalgia is a reaction to the 
breakneck pace of change here over the 
last decade.' 

After so much uprooting in their per- 
sonal fives and the life of the country, 
Russians are reaching out for old com- 
forts. They have been saturated with 
jeans, soap operas and candy bars from 
the West, and now they are looking for 
symbols of their own identity. 

But the search is a complex one. 
Many of the most popular Soviet films 

See FILM, Page 6 



British and Sinn Fein Talk 
About New Truce by IRA 


By James F. Clarity 

New York Times Service 


Btiu UtdtfApra RttMtas 

Martin McGninness, the Sinn Fein deputy leader, arriving with his 
delegation for talks in Belfast with British officials on Wednesday. 


BELFAST — For the first time since 
the Irish Republican Army 'broke its 
cease-fire 15 months ago with a bomb 
attack that killed two persons in Lon- 
don. British officials met Wednesday 
with officials of Sinn Fein and discussed 
the possibility of a new cease-fire that 
would clear the way for it to enter the 
stalled Northern Ireland peace talks. 

- After the three-hour meeting at Stor- 
mont Castle on the edge of Belfast, 
Britain’s new Northern Ireland secre- 
tary, Mo Mowlam, said, “It was an 
informed constructive discussion. 
There is movement in the clarification 
process, which is good.” 

Ms. Mowlam, who did not attend the 
meeting, added, “We will move; Tony 
made it clear that we intend to get mov- 


ing," referring to Prime Minister Tony 
Blair of England. 

“There will be more meetings with 
Sinn Fein,” she continued. “That is 
progress. 1 don't know how much closer 
we are, but people are talking and it’s 
better than it was yesterday.” 

Ms. Mowlam said she was going to 
Washington on Thursday to brief White 
House officials on her government’s 
initiative. British officials have made it 
clear that they hope the Clinton ad- 
minis trad on will continue to put pres- 
sure on Sinn Fein, the political arm of 
the IRA. to seek a new cease-fire and 
that they expect President Bill Clinton 
to make a strong statement on Northern 
Ireland when he meets Mr. Blair in 
London next week. 

Martin McGuinness, the head of the 

See ULSTER, Page 6 


Newsstand Prices" 


Bahrein 1 .000 Din Maka — — 

Cyprus - C. £ 1.00 Nigeria -.MO Mara 

oSfMk -14^)0 DJ<r. Oman. — 

FHand_.12.00FM. Qatar ^OOftab 

OUvalor „£0.85 Rep.lrebnd...lfl£1J» 

SaurtAato.lOXOR 

RMt £E 5-50 S. Africa -'-R1 2 + VAT 

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•(nova. JCSH. 160 U5.Mfc(Eur)....Sl-20 

[{ffg - mn. zw»t«.-zhi*3am 



AGENDA 

U.S. Would Free 
Banks for Business 

The U.S. treasury secretary, Robert 
Rubin, has outlined a proposal to mo- 
derize the financial services sector by 
breaking down the wall separating 
banking and commerce . Und er the 
plan, which das ad mr ra strati on has 
urged Congress to act upon, banks, 
brokerage firms and insurance 
companies would be allowed to af- 
filiate with one another, and federally 
insured banks could offer a wider 
range of financial services. Page 1— 


I The Dollar jj 

New York 

Wednesday • 4 PJuL 

previous doss 

DM 

1.694 

1.6758 

Pound 

1.6447 

1.657 

Van 

114.345 

11265 

FF 

5.7055 

5.6435 

I • IT . LV-v. 1 

k. A 


previous doss 

-12.77 

7290.69 

7303.46 

j S&P 500 1 

change 

Wednesday O 4 P.U. 

previous doss 

-2J27 

839.39 

841.66 



. Page It. 


Page 10. 


Pages 8-9- 

Sports. 

Pages 18-19. 

TheMornurtot 

Paged. 


Clinton Appoints 
Envoy to Gennany 

WASHINGTON (AFP) — Pres- 
ident Bill CZinton has selected John 
Rornblum, the assistant secretary of 
state for Canadian and European af- 
fairs, as ambassador to Gennany, the 
White House announced Wednes- 
day. 

Envoys in wailing. Page 2 


Grass-Buster, but an Image-Builder Too 


By Eric L. Wee 

Washington Post Service 


WASHINGTON — The basic riding 
lawn mower seems adequate enough on 
the showroom floor. It’s got a steering 
wheeL It cuts- grass. 

But the one next to it sports cool- 
looking vents on the side of the engine. 
And it has a hood! 

Next to the hooded one is a big, stout- 
looking beast wife a grill and headlights, 
cushy high-back seat, great-looking 
dashboard and big, beefy tuns. 

As the salesman promotes this one’s 
cruise control and liquid-cooled engine, 
the basic mower starts looking like a 
glorified go-kart You want a “lawn 

- - - ■ - - >• __J :»•„ UMM fn. CO fWI 



just as muen as a car, 1 samTeny Bacon, 
sales manager at Lawn and Power Equip- 
ment in Bethesda, Maryland, who has 
been doing good business selling high- 
end John Deere lawn tractors. “You can 


It’s the Hottest Thing 
On Wheels in America 

spend 12, 13. 14 thousand dollars.” 

Six out of 10 customers, be said, 
insist on buying more tractor than they 
need. 

“People don’t want a little tractor,” 
he said. “Once they get on a tractor in 
front of their neighbors, they want to 
feel manly.” 

It’s lawn mowing season again, and 
many yard-obsessed suburbanites 
won’t settle for walk-behind mowers. 
More are buying riding mowers, and 
some are paying thousands of dollars 
extra to get fee best technology. 

Dealers market fee new supercutters 
as a way for harried homeowners to save 
time in the yard. But new owners of 
minilractors admit that having one is 
also about fen. In addition, dealers say, 
people do not want to be left behind 


once a neighbor gets one. 

“A lot of people can’t really afford 
John Deere,” Mr. Bacon said. “Bi 
they like seeing a John Deere sitting : 
their yard.” 

Officials at fee Illinois compan 
which is renowned globally for its aj 
ricultural tractors, said its new line i 
high-end grass machines had bee 
selling faster than they had expected. 

Standard equipment on fee top men 
els includes power steering, disc brake 
automatic transmission, tilt steerir 
wheel electric fiiel-injected engine an 
hydraulics to lower and raise fee blade 
For $130 more, it comes with stain! e; 
steel hubcaps. Mr. Bacon will add a 
FM-casserte stereo wife headphones ft 
$149 more. 

To help pay for these carlike pria 
are carlike payment plans. Wife 10 pc 
cent down, fee buyer can rumble oi 
with a first-rate mower and t» Vft fr» 

See MOW, Page 6 


F 

t 







INTERNATIONAL HERALD TRIBUNE, THURSDAY, MAY 22. 1997 



PAGE TWO 


The Survivors / Facing an Unexpected Problem 


When AIDS Loosens Its Grip, Time to Look for Work 


By Lynda Richardson 

New York Tuna Service 

N EW YORK — A year and a half ago. a 
49-year-old man named Robert was 
planning his funeral instead of his fu- 
ture. ms skin had become infected 
with festering pimples that refused to heaL His 
weight had dropped precipitously. He found it 
physically draining to visit old friends who were 
also dying of AIDS, fading like wilted flowers. 
He thought of death constantly. 

But earlier this month, there he was, robust 
and tan in a blue T-shirt and khakis, pondering 
three job offers and attending a new evening 
seminar on HIV in the workplace, sponsored by 
die Gay Men's Health Grins, the nation’s hugest 
AIDS service agency. 

In a stark white conference room typically 
used by social workers to help HIV-infected 
people arrange a safety net of benefits for their 
deaths, he was feeling the wonderment of con- 
templating a return to work after two years on 
disability. 

Powerful new AIDS drags called protease 
inhibitors have reduced the lethal virus in his 
blood to undetectable levels. Now Robert, who 
used to earn $70,000 a year in real estate and 
architectural design, hopes to have anew job by 
the end of May. 

"It’s like being resurrected,” said Robert, 
who spoke on the condition that he not be fully 
identified because he feared prospective em- 
ployees]^ misperceptions about AIDS. "I feel 

Medical breakthroughs have left die Gay 
Men's Health Crisis and other AIDS service 
agencies across the country suddenly grappling 
with fragile hope. 

Even as they continue to assist ailing clients 
who do not have access to the life-prolonging 
treatments or have failed to benefit from them, 
the agencies are quietly reinventing themselves 
in concrete and practical ways to keep pace with 
thousands of people like Robert 
For the first time since the beginning of the 
epidemic 16 years ago, the agencies are creating 
new classes, like how to deal with renewed 
health, and shifting die focus of others from 
finding a funeral home to finding a paycheck. At 
die Gay Mm's Health Crisis in the Chelsea 
section of Manhattan, workplace issues have 
dominated the discussion in seminars and work- 
shops in recent months. New classes deal with 
subjects like the rights of employees with HIV 
and how to return to the workplace. 

“That’s all that everybody is talking about,” 
said Lillie MikeselL a spokeswoman for the 
group. “It’s all just exploded.” 

In San Francisco, AIDS Benefits Counselors, 
which used to be in the business of preparing 


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“the majority of those with HTV, increasing 
amounts of people of color, have absolutely no 
access to anything, .period.” _ . 

Viewing the availability of protease inhibitors 
as a new lease cei life is premature for smse. said 

T.tnria Campbell, executive director of die 
Minority Task Force on AIDS, die oldest minor- 
ity AIDS service organization in New York. 

“Many of our clients have been unemployed 
for long periods of time and because of despair 
and issues of inequity have turned to drugs as a 
way of dealing wife the horrors of everyday life,” 
Ms. Campbell said. 4 ‘For our clients, we still have 
to think a lot about what supports that people out 
of the mainstream have, what does their future 
lode like? What is the promise of the future fix' 
our clients, given die realities of how the local, 
state and federal governments are now rolling 
back their commitment to social support-” 


O FFICIALS al agencies like Gay Mai’s 
Health Crisis said they still have an 
important role to play for dying 
people, which include many low-in- 
come, minority and heterosexual clients. But 
they say they cannot ignore the changed reality. 
The group estimates that roughly 70 percent of 
its clients have taken protease inhibitors. 

On a recent Tuesday evening, nearly 20 men 

and women filled a conference room at Gay Men’s 
Health Crisis. Maria Hassner, a managing at- 
torney there, was gniding them through their 
rights as HTV-positrve employees. Several in the 
group scribbled notes as fee talk turned from 
insurance benefits to pre-employment interviews 
and disclosure of HIV status to employers. 

Ms. Hassner advised them against disclosing 
their HTV-positive status to employers, saying 
the only reasons to do so were if they applied for 
disability or sought a disability-related adjust- 
ment to their job. 

“Often disclosing status causes more trouble 
than it is worth,” she said. “Your employer is 
not your friend. The law doesn’t require compa- 
nies to treat us with compassion.” 

One man in an elegant gray suit wanted sug- 
gestions on bow to ask prospective employers 
about disability benefits without disclosing bis 
HTV-positive status. The lawyer recommended 
scooping up die descriptions of all the employer's 
insurance policies, rather than raising a red flag by 
asking far one on long-term disability. 

As the men and women listened attentively, 
Ms. Hassner informed them that prospective 
employers cannot ask about their HTV status, nor 
can employers legally ask if they are taking 
medication, only if they are taking medication 
that might affect their ability to do their job. 

They may be taking 30 pills a day, but if they 
are not experiencing any side effects, the answer 
would be no, she said. 


'IF-- 



BsyUntig/Tbc Pb«t 

Doctors at a San Francisco hospital, where advances are being made in AIDS treatments. 


clients for disability and death, now manages an 
employment service and has seen demand for job 
skills and placement workshops nearly triple 
since Janaary. ■ 

In Atlanta. AID Atlan ta, a nonprofit service 
agency, has conducted free public forums since 
November to help clients with AIDS navigate 
the challenges of renewed health. 


T HE forums have broached everything 
from artfully accounting for enormous 
gaps in resumes (list accomplishments, 
putting the up front, rather than 
jobs in chronological order) to understanding 
changes in corporate culture and lingo (team 
leaders, not managers). 

For fee first in fee series of six public forums, 
a few dozen people were expected, but 200 
showed up. 

“We're in an incredibly pivotal time in the 


said Sandy Thurman, President Bill Clinton’s 
new director of the National Office on AIDS 


Policy. “It’s a huge shift logistically as well as 
psychologically . 7 ’ 

Even as AIDS comes to feel for some people 
more like a chronic disease than a death sentence, 
the shifting role of AIDS agencies has become a 
touchy subject to service providers. There are 
still many unknowns about the new drugs, like 
how long they will remain effective. But. as the 
needs of clients change, some AIDS organi- 
zations are likely to be put out of business. 

As lower-income minorities rather than white 
nriddle-classgay men have become the prime 
target of AIDS, racially charged tension has 
increased over the role that leading AIDS service 
agencies should play and where resources should 
be invested, according to patient advocates and 
researchers. 

“There is an absolute need to help those who 
are now finding themselves healthier,” said 
Mario Cooper, fee founder of Leading for Life, 
an initiative to increase political involvement in 
AIDS issues among blacks, and a board member 
of fee Harvard AIDS Institute and Gay Men’s 
Health Crisis. “But at the same time.” she said. 


travel update Albright Sets in Motion a New U.S. Policy for Bosnia 


French Strike Eases 

PARIS (AP) — A strike by pilots at 
Air France forced the state-owned air- 
line to cancel half of its short-haul 
flights Wednesday morning, although 
most other flights were maintained, a 
spokesman said. 

Some pilots returned to work on fee 
strike's second day, allowing fee airline 
to guarantee 70 percent of its medium- 
haul flights and all its long-haul flights 
Wednesday morning out of Pans’s 
Charles de Gaulle International Airport, 
the spokesman said. 

Only 50 percent of Air France’s 
morning short-haul flights out of Oriy 
airport were running, the spokesman 
said. 

Pilots’ unions called a four-day strike 
through Friday to protest Air France’s 
planned doable-tier salary system for 
new pilots. One of the six unions pulled 
out of the strike Tuesday afternoon after 
reaching agreement on the hiring of new 
pilots. 

Gathay Shifts Flights 

HONG KONG (AFP) Cathay Pa- 
cific Airways has rerouted long-dis- 
tance flights for its twin-engine Airbus 
A330 after two in-flight engine failures, 
the company said Wednesday. 

It also has modified the routes on 
Airbus A330-300 links because of the 
incidents involving Rolls Royce Trent 
700 engines. In both incidents the planes 
continued their flights on one engine 
and were able to laid safely, the com- 
pany said. 

But as a safety measure, Cathay Pa- 
cific is keeping its airplanes within one 
hour’s flying time from an ahport, com- 
pared with 138 minutes previously. 

Common internal passports for 
Tanzania, Kenya and Uganda to fa- 
cilitate cross-border trade will be issued 
starting in September, Francis 
Muthaura, a top East African regional 
official, has said, according to the Daily 
News of Dar es Salaam. (AFP) 


By Michael Dobbs 

Washington Post Service 

WASHINGTON — The Clinton ad- 
ministration has announced the appoint- 
ment of a special envoy for war-crimes 
issues as part of an effort to show that it 
is doing everything possible to ensure a 
lasting peace in Bosnia after fee sched- 
uled departure of U.S. troops next 
year. 

The nomination of David Scheffer as 
ambassador-at-large for war-crimes is- 
sues came two days before a long- 
awaited policy speech on Bosnia by 
Secretary of State Madeleine Albright. 
The State Department announced Tues- 
day feat Mrs. Albright would travel to 
Bosnia next week to pressure leaders of 
rival ethnic groups to comply wife the 
19% Dayton peace agreement. 

American officials said Mrs. Albright 
planned to announce a new policy of 
offering economic incentives to mod- 
erate Bosnian Sob leaders willing to 
carry out pledges made at Dayton, in- 
cluding the return of refugees driven 
from their homes during fee three- and- 
a-half-year war. At fee same time, an 
attempt will be made to put the eco- 
nomic squeeze on Bosnian politicians 
who refuse to cooperate. 

“We hope to show over tite next year 
and beyond that the people who go 
along with Dayton will live better, and 
those who do not will live worse,” an 
Albright aide said. 

During the first Clinton term, Mrs. 


Albright was one of the most outspoken 
proponents of strong action in Bosnia, 
and championed fee cause of the in- 
ternational war crimes tribunaL Bnt she 
has remained largely silent about the 
issue since becoming secretary, permit- 
ting fee Pentagon and Defense Sec- 
retary William Coben to make most of 
feepolitical moves. 

The latest steps seemed designed in 
part to reassert State Department 
primacy in the debate over how to im- 
plement the Dayton vision of a reunited 
Bosnia and prevent a return to whole- 
sale ethnic violence after die departure 
of U.S. troops. Mrs. Albright has chosen 
a symbolic setting for her policy speech 
on Bosnia on Thursday. It will be de- 
livered aboard an aircraft carrier in the 
Hudson River, in front of senior military 
officers. 

Mr. Scheffer is a close Albright as- 
sociate, who worked with her on fee war 
crimes issue while she was the chief 
U.S. delegate to the United Nations. It 
was unclear, -however, whether his ap- 
pointment marked more than a symbolic 
shift in U.S. policy on Bosnian war 
criminals. The Pentagon is adamantly 
opposed to any attempt to use North 
Atlantic Treaty Organization troops to 
round up indicted war criminals such as 
fee former Bosnian Serb president, 
Radovan Karadzic, who continues to 
exercise considerable political influ- 
ence. 

Based in The Hague, the international 
tribunal on the former Yugoslavia has 


been in operation' for more than four 
years, but has not yet brought to justice 
any of the leaders who masterminded 
the war. Of the 76 people indicted by the 
tribunal for war crimes, mainly Serbs 
and Croats, 67 are still at large. Only one 
trial has been completed, of a relatively 
low-level Serb named Dusan Tadic. 

American officials said Mis. Albright 
was likely to visit the Bosnian Serb 
towns of Banja Luka and Brcko in ad- 
dition to the Bosnian capital, Sarajevo. 
The largest Serb-controlled city in Bos- 
nia, Banja Luka is the political base of 


Europe 


fee more pragmatic element in the Bos- 
nian Serb leadership, in contrast to the 
hard-core nationalists in Pale. 

State Department officials said Mrs. 
Albright is putting her prestige on the 
line by taking such a high-profile pos- 
ition on Bosnia and creating fee new 
post of special envoy for war crimes. 

At fee same time, she also is exposing 
herself to a certain political risk if the 
new initiative on Bosnia fails to pro- 
duce, and accused war criminals such as 
Mr. Karadzic continue to have huge 
political influence. 


WEATHER 


Forecast for Friday through Sunday, as provided by AccuWeather. 


Ambassador s; 
In Waiting: i 
Clinton Makes' 
More Choices 3 


By A3 Kamen 

Washington Post Service 

WASHINGTON — The dust is be- 
ginning to settle on President Bill Clin- 
ton’s choices for ambassadorships, wfeji 
about three dozen embassy openings 
typing tentatively filled at a White House 
meeting. , 

The choice for London appears to be 
Philip Lader, former head of the Small 
Business Administration, former White 
House deputy chief of staff and a long- 
time friend of the Clinton’s. 

If fee decision, made Monday, stays 
firm. London would be something of p 
homecoming for Mr. Lader, who wagjsi 
smriept at Oxford in the 1960s and is an 
honorary fellow of his college there. Mb 
lader has also lived in Australia, wfa^e 
he had beat president of Australia's fi^t 
public university. 

Other coveted postings that were de- 
cided on include Ottawa, which people 
famili ar with fee meeting say will go ip 
an Atlanta lawyer, Gordon Giffin. The 
best posting still open, Rome, is to go Gf> 
Representative Thomas FoglietS, 
Democrat of Pennsylvania. The Paris 
ambassadorship was offered a month 
ago to Felix Rohatyn. the Lazard Freres 
investment banker. 

All ambassadorships need to be 
cleared by fee Senate. Z 

Hattie Babbitt, fee chief delegate to 
the Organization of American States 
and the wife of Interior Secretary Biuqs 
Babbitt, is in line to be deputy ad- 
ministrator of the Agency for Interna- 
tional Development. 

Barbara Bodine, director of fee office 
of East African Affairs at fee State De- 
partment, is being considered for anj- 
bassador to Yemen. April Gtaspie/a 
career Foreign Service employee who 
was recalled as ambassador to Iraq fep 
day before Saddam Hussein's troops 
invaded Kuwait, is to go to Yemen on ah 
interim basis before Ms. Bodine arrives. 
Ms. Glaspie is then to become cause# 
general in Cape Town, a posting that 
does not require Senate confirmation! 

A Boston minister, Charles Stith,. a 
longtime activist who has served on Mr. 
Clinton’s observer mission in South 
Africa's 1994 elections, is being talked 
about as ambassador to Tanzania. 

Carolyn C Uriel, a senior presidential 
speech writer who had been a produces- 
writer for ABC-TV's NigbtUne pro- 
gram, is the choice for ambassador to 
Belize. * 

Steven Rattoer, a former, New.Ypjrk 
Times reporter and now a ' Wall Street 
investment banker, had been talked 
about as a candidate, to run the Export- 
Import Bank and the Overseas Private 
Investment Corp. He now appears to bp 
a leading contender to be deputy U!S. 
trade representative for Asia; Richard 
Fisher of Texas, a former senatorial 
candidate, is also in the running. 

Bob Healy, a syndicated columnist 
and forma executive editor and Wash- 
ington bureau chief of fee Boston 
Globe, is to go to Dublin soon for a 
senior job in the embassy on the U!§. 
Information Agency payrolL 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY, MAY 22, 1997 


PAGE 3 


ass a<V s 


00 ^aU 


THE AMERICAS 



Senate Votes, 
64 - 36 , to Ban 
Aa Abortion 
Procedure 


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POLITICAL 


By Katharine Q. Seelye 

fa* Times Service 

Z WASHINGTON — The Senate has 
.passed a biU that for the first tunc would 
a . specific abortion procedure but 
^OTtion opponents fell three votes short 
° omber , needed to override an 
greeted veto from President Bill Clin- 

~ The vote, 64 to 36, represented only 
mcremenfal progress for abortion oi£ 
ponems. They picked up three Demo- i - * 

^^. lncludln g Tom Daschle of If i 
iouih Dakota, the Democratic leader — L|L fl 
>no voted against a similar ban last ^ 
y^r. With that shift, they gained some 
ground in the larger abortion debate 
Which they have been losing in the 
' for more than two decades. Four 
jblicans voted against the bill. 

»ator Rick Santorum, Republican 
of Pennsylvania, who has led the fight 
;For the ban, said after the vote, * * We just 
Seed two or three more next time wbo 
jinally allow their eyes to open up 
enough to see what die truth of this 
Procedure is all about, and even tuall y 
'.that will happen.” 

„* The debate on Tuesday, in which only 
a handful of senators spoke, was listless 
.and anti-climactic and left the political 
dynamics essentially unchanged — even 
after abortion opponents brou ght a fiill- 
. 'court press against the procedure, which 
critics call partial-birth abortion and doc- 
tors call intact dilation and evacuation. 

'not Majority Leader to Take Up Her Cause if Court-Martial Goes Ahead 

. reduc e the number of abortions because 

Lieutenant Flinn, 


Cwg&Mifflir AwnrilrH Picm 

Trent Lott, the Senate majority leader, outside the White House: ‘She is being badly abused. 1 

A Dogfight Over the Adulterous Pilot 


there are alternatives, but the American 
Civil Liberties Union contends the bin 
js written so vaguely that it would affect 
more than the partial-birth procedure. 

^ The momentum had seemed on the 
]side of abortion opponents. A dozen 
states have enacted their own bans on 
'the procedure, in which a ferns is par- 
•Jdally delivered and its brain is vacu- 
^funol out so the skull can be collapsed 
'and the head can be delivered. 

In April, an advocate for abortion 
‘rights admitted that he had lied about the 
jarity of the procedure, which he said is 
performed more frequently and on 
healthier babies and- mothers than he 
and his colleagues had suggested. 

,a ■ Abortion opponen ts spent more than 
$1 million in recent weeks on advert- 
ising in eight stales to sway potential 
swing senators, and on the eve of the 
vote, the prestigious American Medical 
Association,- which bad never taken a 
/position on an abortion bifl'befbre, en- 
dorsed the. ban. / . . 

"•lliiiilriug that the tidh^was against 
them, abortion -rights advocates began 
die day so dispirited that they mounted 
no chaDenge»lettmg the elode tick dur- 
ing most of their allotted debate time 
without a single senator on the floor 
making their case. 

- r ‘ fa tte end, thoagh, the progress by the 
abortion opponents seemed so small 
-feat abortion-rights advocates claimed 
victory themselves — even as the Sen- 
ate passed a bill that they viewed as a 
serious incursion into rights guaranteed 
.by the Supreme Court. 

The Senate has never mustered a two- 
thirds majority against abortion since 
fee Supreme Court legalized it in 1973, 
although a majority of senators oppose 
abortion. 

^ And the While House reaffirmed Mr. 
Clinton’s intention to veto fee ban 
again, saying it still docs not provide 
enough safeguards to protect a woman’s 
health. 

- -Because the Senate changed the bill 
to win the medical association's en- 
dorsement, die measure now goes back 
to the House, which passed fee ban 
earlier this year wife five more votes 
than needed to override a veto. 


By Tamara Jones 

Washington Post Service 


MINOT AIR FORCE BASE, North 
Dakota — The Pentagon halted the 
adultery trial of die military's first fe- 
male B-S2 pilot before it could begin 
here so that the air farce secretary could 
have more time to decide whether to 
grant Lieutenant Kelly Flinn an hon- 
orable discharge instead. 

The Senate majority leader, Trent 
Lott also waded into the issue, telling 
reporters Tuesday on fee steps of fee 
White House. “I think she is being 
badly abused.” 

He said he would take up Lieutenant 
FHnn ’s cause wife Defense Secretary 
William Cohen unless “it's going to be 
worked ouL” 

“The Pentagon is not in touch wife 
reality on tins so-called question of frat- 
ernization,*' tiie Mississippi Republican 
said. 

“I don't understand why she is being 
singled out and punished the way she 
is, he added. “I think at fee minimum 
she ought to get an honorable dis- 
charge.” 


wbo is 26 and 
single, had been scheduled to be court- 
martialed Tuesday on charges of adul- 
tery and fraternization in connection 
with two af fai re fee air force says she 
had over the past year. One was wife an 
enlisted man who is single, the other 
wife a married civilian. She also is 
charged with lying to investigators and 
disobeying an order to stay away from 
the married man. She faces up to 9 Vi 
years in prison if she is convicted. 

Lieutenant Flinn has requested feat 
she be allowed to resign wife an hon- 
orable discharge. 

The decision by the air force secretary, 
Shelia Wirinall is unlike ly to put an end 
to the issues raised by the court-martiaL 

Many civilians and members of the 
military services contend that the air 
force has gone too far. Bnt Pentagon 
officials defend fee militar y c riminal 
code, which makes adultery illegal. 

“We demand great sacrifice for the 
men and women, who come in to fee 
military,” Mr. Cohen said Tuesday on 
an ABC news p ro gram . 

“There are reasons for maintaining 
these high standards in order to have 


discipline and morale,** he said. '‘The 
important thing is feat we have these 
standards uniformly applied and not en- 
gage in any selective enforcement.” 

The Flinn case and recent incidents of 
sexual harassment in die military have 
prompted congressional debate about 
whether letting women and men un- 
dergo basic training together is a good 
idea. 


Congress Beaches 
The UN Debt Boat 

WASHINGTON — The Clinton 
administration’s proposal to pay SI 
billion in dues owed to the United 
Nations has run aground in Congress. 
Republicans are insisting on paying 
only some of the debt, over a longer 
stretch of time, and only after the 
United Nations agrees to a series of 
demands. 

Proposals circulating in the House 
and the Senate would require 
everything from permanently redu- 
cing Washington's annual dues, 
while raising China's, to slashing fee 
expense accounts of ranking officials 
at the organization’s headquarters in 
"New York. 

Under the proposals, which have 
the backing of the Republican lead- 
ership in both houses, fee United Na- 
tions also would have to reimburse 
the cost of American military equip- 
ment and support for peacekeeping 
operations, to impose still more 
budget restraints, and even to allow 
the General Accounting Office, the 
investigative arm of Congress, to 
check fee organization’s bodes. 

If fee Republicans have their way, 
the United States will pay the back 
dues over as many as five years in- 
stead of fee two years proposed by the 
administration. The president would 
first have to certify to Congress that 
fee United Nations had met each con- 
dition. (NYT) 

White House Averts 
Documents Battle 

WASHINGTON — The White 
House has averted a possible citation 
for contempt of Congress by acceding 
to most Republican demands for sub- 
poenaed documents in a House in- 
vestigation of campaign finance ab- 
uses. 

The White House counsel, Charles 
Ruff, agreed to produce 2,000 pages 
of documents immediately, to 
provide uncen sored versions of pre- 
viously submitted documents by May 
28 and to produce other remaining 
subpoenaed documents to House in- 


vestigators by June 13. “The White 
House is committed to providing fee 
committee with information respons- 
ive to its subpoenas,” Mr. Ruff raid in 
a letter to Representative Dan Burton, 
Republican of Indiana. 

He repealed past White House as- 
sertions that some subpoenaed infor- 
mation was privileged, but agreed to 
provide “logs” that described it so 
House investigators could decide 
whether they needed it. (WP) 

A Fashion Statement 

WASHINGTON — Mr. Clinton 
accused fee nation’s fashion industty 
on Wednesday of glamorizing heroin 
use in photography to sell clothes. 
“The glorification of heroin is not 
creative, it's destructive,” he said. 

The president said heroin was be- 
coming fee drug of choice on college 
campuses and elsewhere, in part be- 
cause of fee pictures young people 
see. 

He said some fashion leaders were 
“admitting flat-out feat images pro- 
jected in fashion photos in the last few 
years have made heroin addiction 
seem glamorous and sexy and cool.” 
And. he added, “as some of fee 
people in those images start to die 
now, it's become obvious feat is not 
true.” 

Mr. Clinton’s attack was prompted 
by a New York Times article Tuesday 
about fee so-called heroin-chic style 
of fashion photography. The article 
said that magazine editors were now 
admitting that glamorizing the 
strung-out heroin addict's look had a 
seductive power that caused damage. 
Applauding fashion leaders for ac- 
knowledging fee problem, the pres- 
ident said, ‘ ‘You do not need to glam- 
orize addiction to sell clothes.” ( AP ) 

Quote/Unquote 

Ronald Reagan, 39, the former 
president’s son, on his father’s battle 
wife Alzheimer's disease: “He's still 
my dad, and he’s still himself, which 
you know is a good tiling. Obviously, 
he has a certain diminis hed capacity 
for certain things. He has trouble find- 
ing words.” (AP) 


Gephardt Breaks Ranks on Budget 


By Eric Pianin 
ana John E. Yang 

Washington Post Service 


Judges Are Told to Keep 
Jurors’ Focus on Evidence 


By Benjamin Weiser 

New York Times Service 




Away From 
Politics 

h a An unmanned Delta rocket has 
hurled a Norwegian communica- 
tions satellite into orbit. It was the 
first launch of a McDonnell 
Douglas Delta rocket from Cape 
Canaveral Air Station in Florida 
1- since fee explosion of another Delta 

Lin January. 

P • A man convicted of abducting, 

raping and murdering a Lubbock. 

, Texas, woman in 1977 was ex- 
I ecuted by lethal injection at the 
*** state prison in Huntsville, a prison 
^ spokesman said. Clarence Allen 
W Lackey, 42, was convicted of 
1 killing Diane Kumph by dashing 
her throat wife a knife m July 
1977- (Reuters) 

• A throat cancer patient died 
after setting himself on fire trying 
to light a agar. He was unable to 
call for help because fas illness had 

cost him his vocal cords. Abraham 
Mosley, 64, apparently ignited 
strips of paper on a stove burner to 
li g ht a cigar because his ca ncer le ft 
him unable to manipulate matches 
- or a lighter. The flaming paper ig- 
nited gauze ba n da ges mat wae 
around his neck. inn 

oa a California highway, kiilmg sev- 
en people and injuring smrai^state 
Stfefe and hospiial 
saM. The monto were tra velm|&om- 
‘ Northern to Sonthem Cabfomut 

jS& fc0 “3S3 




NEW YORK — Stepping into a legal 
debate wife racial and political over- 
tones, a federal appeals court has de- 
clared that judges have a duty to make 
sure jurors do not ignore the evidence or 
law in a case and instead impose their 
own values to acquit or convict a de- 
fendant 

The ruling by the court of appeals for 
the second circuit in Manhattan offered 
the strongest denunciation yet by the 
federal courts of the practice known as 
“jury n ullifi cation,” in which a juror 
misfa vote, for example, to acquit a 
defendant for racial reasons, rather than 
considering fee strength of the case 
agains t him. 

failing such an action “a violation of 
a juror’s sworn duty to follow the law as 
instructed by the court,” Judge Jose 
Cabranes wrote for a unanimous three- 
judge panel fear “trial courts have a 
duty to forestall or prevent such con- 
duct’ ’ by admonishing or even dismiss- 
ing jurors from a case. 

The decision stemmed from a drug 
case tried in Albany, New Yoik, in 
which jurats complained to the judge 
Thar one juror, the only black member of 
the panel, appeared opposed to applying 
fee drug laws in the case, believing that 
tiie defendants had “a right to deal 
drugs,” fee opinion said. 

After interviewing fee jurors, tiie trial 
judge concluded that the black juror felt 
thar fee defendants “were in a disad- 
vantaged situation” and would not vote 
to convict “no matter what fee evidence 
was.” The judge removed tiie juror and 
fee 11 remaining jurors voted to con- 
vict. 

fa its ruling Tuesday, the appellate 
bourt ac tually overturned fee convic- 
tions, saying that tiie juror in this case 
may truly not have been convinced of 
the defendants' guilt and that the judge 
was wrong to conclude that he was 
disregarding the law. But fee appeals 
court said the judge was right to in- 
vestigate the juror’s motivation, and 
used the case to take a strong stand 

aeainst nullificatioo. ... 

^We categorically reject the idea 

fear , in a society committed to fee rule of 

law fury nullific ation is desirable, or 
feat courts may permit it to occur when 

it is within their power to prevent, Mr. 

Cabranes wrote. . , . 

The decision comes as the legal com- 
munity is embroiled in a debate over 
race and the justice system , and w hether 
it is ever appropriate for jurors to m- 
tLSS Kard the law, in acquit- 


ting or convicting, as a form of protest 
The appellate court noted that jury 
nullification has deep roots in U.S. jur- 
isprudence. It protected fugitive slaves 
from being sent back to the South in the 
period before the Civil War, as northern 
juries refused to convict But the court 
noted that there were also “shameful 
examples of how nullification has been 
used to sanction murder and lynching.” 


WASHINGTON — Richard Geph- 
ardt. the leader of the minority Demo- 
crats in fee House, has denounced the 
balanced-budget and tax -cut agreement 
President Bill Clinton ^negotiated With 
congressional Republican leaders. 

The House decisively passed the 
measure Wednesday. 

Using rhetoric feat recalled past 
budget battles between Republican 
White Houses and congressional 
Democrats, the Missouri Democrat said 
the agreement favored fee wealthy with 
its tax cuts, did not spend enough an 
children's health, education, roads and 
bridges, and was based on economic 
assumptions that were too optimistic. 

“This budget agreement is a budget 
of many deficits — a deficit of principle, 
a deficit of fairness, a deficit of tax 
justice and, worst of all, a deficit of 
dollars,” said Mr. Gephardt, who stood 
alone among Hill Democratic leaders in 
his opposition. “I don’t think this 
budget is fair.’ ' 

Mr. Gephardt’s 

slow the efforts of Republican 
and the White House to rush the com- 
plex, five-year balanced-budget plan 


through Congress before the start of a 
Memorial Day recess on Friday. 

The House worked through the night 
to complete work on a budget resolution 
that embodies the outlines of the plan, 
while fee Senate launched what was 
certain, to-be a more protracted debate. 

However, Mr. Gephardt’s speech was 
an important step as he attempts to de- 
velop a political rationale for a possible 
presidential race in 2000 and offer an 
alternative to Mr. Clinton’s effort to 
govern from the political center. 

Next week, Mr. Gephardt will further 
highlight his differences wife Mr. Clin- 
ton ana Vice President A1 Gore — Mr. 
Gephardt’s chief rival for the Demo- 
cratic presidential nomination — wife a 
speech outlining his opposition to ex- 
tension of China’s trade privileges. 

Mr. Gephardt's opposition is all the 
more remarkable because his top lieu- 
tenant and philosophical soul mate, fee 
House minority whip David Bonior of 
Michigan, spoke out in support of the 
budget plan. 

During a meeting between fee con- 
gressional leadership and Mr. Clinton at 
fee White House before fee vote, of- 
ficials said, Mr. Gephardt raised his 
disagreements on fee budget but did not 
.announce his opposition or challenge 
fee president. 


In his speech, Mr. Gephardt insisted 
that his break with fee administration 
and fee Republicans over die budget “is 
not politics’' and is not about “some 
election.” 

-BuiRkhaitLAnney of Texas, fee lead- 
er of fee Republican majority, dismissed 
Mr. Gephardt's dance as political pos- 
turing. “He has positioned himself ex- 
cellently to command fee liberal base of 
fee Democratic Party in the primaries,” 
Mr. Anney said. “I think from his point 
of view it is a wise decision.’' 

The budget agreement forged by 
White House and Republican and 
Democratic negotiators over fee past 
two months and finally committed to 
paper last Friday would eliminate fee 
deficit by 2002. It calls for substantial 
entitlement savings, including $1 IS bil- 
lion in cuts in Medicare, and net tax cuts 
of $85 billion over five years. 

In all, fee plan claims $320 billion of 
deficit reduction over five years, wife 
most of the savings coming from Medi- 
care and other entitlement programs and 
lesser cuts in domestic and defease 
spending. 

But fee net savings would total only 
$204 billion, after deducting fee rev- 
enue losses from fee tax cut and $31 
billion of domestic spending initiatives 
demanded by the administration. 


AMERICAN 


TOPICS 


Shame! Frammgfaam 
Knows How to Use It 

The upright residents of 
Framingham, Massachusetts, 
had had all they could take: Va- 
cant houses in their midst were 
an eyesore, their windows 
smashed, yards untended, inhab- 
ited sometimes by drug users. 

So they borrowed a page 
from that tale of Puritan New 
England, “The Scarlet Letter” 
by Nathaniel Hawthorne, and 
used shame to get results. The 
town sent contractors, armed 
with plywood painted bright 
red, to board up the houses. 

In the Hawthorne classic, a 
woman is forced to wear a red 
“A” to identify her as an adul- 
teress. fa Framingham's Oper- 
ation Red, white banners were 
strung up to identify recalcitrant 
property owners. 

Fifty -two houses have been 
red-boarded in two years, and 
owners have responded. All 52 
have been renovated, sold or 
demolished. 

“Every single one of them 
has been a success story,” said 
the building commissioner, 
Lewis Colten. “Now we just 
call them and say we’re going to 
use tiie Operation Red program, 
andtheycallusupinm>ediately, 
and they want to know what 
they can do to fix fee house 
“P-V 

Framingham won an award 
for ingenuity from fee Mas- 
sachusetts Municipal Associ- 
ation, and building inspectors 
from other states. have asked 
about the program. 


Short Takes 

German shepherds wear- 
ing tiny cameras and micro- 
phones will be keeping tabs on 
some inmates in Arizona. Sher- 
iff Joe Arpaio of Maricopa 
County, who has forced pris- 
oners to wear old-style stnped 
unif orms and live in tents, is 
excited by this innovation. 

‘‘Inmates are aping to know 
they are on Candid Dog Cam- 
era,” he said. 

Starting Thursday, the dogs 
will patrol the fences around fee 
tents at the county jail “They 
can pick up conversations and 
gather intelligence,” Sheriff 
Arpaio said, “irs a great idea.” 

They’re big and getting big- 
ger; they're beaded for huge; 
they’re nuns! Americans, it 
seems, are buying nun puppets, 
nun gre eti n g cards, even nun 
snow globes in droves. Squeak 
Toy Nun, “pious but not up- 
tight,” is a favorite; so are the 
13 superhero nuns of fee War- 
rior Nun comic book series. 

What's driving die rush to 
embrace nunnery? “Baby 
boomers who went to Catholic 
school love them,” Mark 
Pahlow. president of Accoutre- 
ments, which sells the 
Nun doll, told U.S. News 
World Report- “Protestants are 
intrigued by the ritual. Gen- 
Xers like tbe dark clothing.” 

But do nuns enjoy 'this ir- 
reverent interest? One of them. 
Sister Margaret Traxler, said, 
“I am not a many' bunny.” But 
Sister Christelle Macaluso, who 
has her own Fun Nun Web site 
on fee Internet, thinks it's all to 
the good: “You don't want the 
idea of a fun nun to be an oxy- 
moron. like ‘honest politi- 
cian.”* 

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httpVAvww.vizkkCom 




Jakarta Blames Far Left 
For Unrest in Campaign 

But Opposition Activists Say Rigid Controls 
Are Behind Rioting Before Vote Next Wkek 


Compdtd by CW Satf From Dhpateha 

JAKARTA — The Indonesian au- 
thorities are blaming a far-left group for 
street violence in the campaign leading 
to general elections next week, but op- 
position activists said Wednesday that 
the government's rigid political con- 
trols were aggravating the unrest 

Lieutenant General Syarwan Hamid, 
head of the sociopolitical sec£on of 
Indonesia’s powerful and politicized 
military, was quoted by the official Ant- 
ara news agency as blaming the illegal 
left-wing People’s Democratic Party, or 
PRD, for the campaign disturbances. 

“I have come to the condusian we 
most suspect the PRD as being behind tbe 
acts of violence,’ ' General Hamid told a 
dosed-door meeting of media editors. 

“The phenomena and indications of 
the PRD’s involvement in the riots are 
there,’ ’ he said, a reference to a number 
of leaflets found at campaign rallies 
advocating replacing the government 
and current political laws, including 
those which give the military a powerfm 
role in internal affairs. 

But protesters told reporters Wed- 
nesday that they had taken to the streets 
out of frustration with strict controls that 
have limited campaign activities. And 
analysts and diplomats cited increasing 
disparities between the rich and the poor 
as well as the lack of escape valves to 
ease the frustration. 

“Despite what the World Bank says 
about Indonesia's development, there is 
a considerable gap in income levels,” 
one diplomat saia Wednesday. “This 
had led to a lot of tension.” 

Indonesia allows only three political 
parties — the ruling Golkar, die 
Muslim-based United Development 
Party and the Christian-Natio nalis t In- 
donesian Democratic Party — to contest 
elections. All of them are required to 
swear to abide by state ideology and 
refrain from open criticism of the gov- 
ernment and the political system. 

General Hamid had also blamed the 
PRD for riots that broke out in Jakarta in 
July last year after Megawati Sukarno- 
putri, the leader of the Democratic party 
who is the charismatic daughter of die 
founding president, Sukarno, was ous- 
ted by a government-backed faction. 

The government has not acknowl- 
edged any deaths in die violence, al- 
though General Hamid was quoted by 


ASIA/PACIFIC 


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the Kompas daily on Wednesday as 
saying 110 people had died in accidents 
during the campaign. 

General Hamid said 83 people had 
died in traffic accidents and 27 drowned 
when their boat sank on the way to a 
Golkar rally. 

Most of the violence since the start of 
the campaign has stemmed from clashes 
between supporters of the United De- 
velopment Party and Golkar. United 
Development, whose ranks have been 
swelled fay a growing informal alliance 
between its supporters and those of Mrs. 
Megawati, has also clashed several 
times with security forces. 

On Wednesday, troops and riot po- 
licemen broke up a street battle between 
hundreds of Muslim students and sup- 
porters of the Golkar Party. 

The brawl erupted wheat a convoy of 
Golkar support er s stepped outside an 
Islamic college at Ciputat in southern 
Jakarta after they were jeered by stu- 
dents, witnesses said. Several people 
were injured. 

Later, Antara said Golkar officials 
had canceled campaign meetings in 
eastern and southern Jakarta to guard 
against more violence. 

In Pekalongan in central Java, the 
scene of serious clashes on Tuesday, 
witnesses said United Development 
supporters had attacked a public bus 
carrying Golkar supporters among its 
passengers on Wednesday. 

Windows were smashed and tire bus 
was overturned, the witnesses said, but 
there were no reports of injuries or ar- 
rests. The town was otherwise calm in 
the face of heavy security patrols. 

The election campaign ends on Fri- 
day, giving a cooling off period before 
the country’s 125 million eligible voters 
go to the polls May 29. 

The Australian and U.S. embassies 
have advised their citizens living in 
Jakarta to be watchful for the possibility 
of more violence, citing widespread 
clashes in the capital and elsewhere on 
the country's mam Java island over the 
last four days. 

At stake in the election are 425 seats 
in the 500-member Parliament, which 
will help choose Indonesia’s president 
□ext year. The other 75 seats are al- 
located to the military. 

President Suharto, 75. is expected to 
seek a seventh term. (Reuters, AP) 


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RAMGA7T, Bangladesh — Hun- 
dreds of concrete shelters helped keep 
the death toll relatively low in a cyclone 
that hit Bangladesh this week, govern- 
ment officials said Wednesday. 

Thousands are often lolled in a storm 
of such a magnitude — with winds of up 
to 200 kilometers an hour, or 125 miles 
an hour — but the official government 
death toll Wednesday stood at 112. 

That toll could rise, however, because 
many fishermen who were at sea when 
the storm strode Monday were still un- 
accounted for. The United nations De- 
partment of Humanitarian Affairs put 
the toll at 200 . 

Alerted by government warnings and 
helped by 30,000 volunteers, people 
flocked to die 700 concrete shelters mat 
have been built with foreign aid since 
1991, when a storm of similar ferocity 
killed 138,000 people. 

The worst cyclone on record in 
Bangladesh was in November 1970, 


when at least 500,000 people died in die 
low-lying coastal regions. 

Experts say the lack of shelter in the 
earlier storms was a contributory factor 
in the high death tolls, along with de- 
forestation of the coastal area. Trees had 
provided protection against tidal 


Prime Minis ter Hasina Wazed said 
die number of cyclone shelters needed 
to be more than doubled to at least 
2 , 000 , but did not say whether the gov- 
ernment would embark on a building 
program. 

The storm, the seventh-most devast- 
ating in 40 years here, destroyed or 
damaged 400,000 homes, die govern- 
ment said, and left 1_5 million people 
without shelter. Experts working for 
relief agencies in the region said it could 
take a week a more before a full picture 
of the devastation emerged. Some areas 
were still cutoff. 

Agriculture Ministry officials said 
the rice crop largely escaped damage. 


Mnfty HaWApaa fiaa-ft w 

A family in Chittagong erecting a hot on a mod pile. The government wants more concrete cyclone shelters. 

Shelters Kept Bangladesh Toll Low 


But the storm killed cattle, smashed 
bridges and uprooted trees. It also cut a 
s wath through thickly housed areas at 
Cox’s Bazaar and Chittagong. 

The minis try reported acute water 
shortages in Chittagong, the second 
largest city in die nation, because of 
disruptions in electricity. 

Thousands of rescue workers and 
1,043 medical teams in two disaster 
zones set np camps to help 7,000 injured 
people and to take preventive measures 
agamst epidemics. 

The storm surprised people in the 
region because h lasted so long — up to 
15 hours, compared with four hours in 
the devastating 1991 storm — and kept 
swinging back aapiedactably. People 
had to remain without food or water in 
fee overcrowded shelters. 

Another reason for fee relatively low 
death toll, officials said, was that fee 
storm struck during the day and at low 
tide, avoiding major flooding. 

(Reuters, AP, AFP) 


Australia Cuts 
Immig ration ' 

Quotas, Citing 
Joblessness 4 


Reuters 

MELBOURNE -7 Australia cut its 
annual immig ration intake on Wednes- 
day for the second consecutive yeQ, 
citing concerns over unemployment. C 
Immigration Minister Philip Rod- 
dock said the number of immigrants 
allowed into the country from July to 
June 1998 would be cut more than '8 
percent, to 68,000 from 74,000 in 199$ 
97, with a shift in focus to work skStlS 
Instead of family reunion. 

“The government believes that be- 
cause of high levels of unemployment, a 
further reduction in migration is desir- 
able at this time,” Mr. Ruddock saidr 
Mr. Ruddock dented that the gov- 
ernment was bowing to pressure train 
Pauline Hanson, a politician who has 
demanded a ban on immigration. A 
The restrictions were “not a respoti* 
to the comments of Panline Hanson,’ 
Mr. Ruddock said. “If it were a re- 
sponse to Pauline Hanson there wouljl 
probably be no program at alL” 

Voters have flocked to Miss Hanson^ 
newly formed One Nation Party, which 
opinion polls now rank as potentially the 
third force in Australian politics, ahea^ 
of the Australian Democrats. ; 

Australia's unemployment rate has re- 
mained above 85 percent for more feafc 
a year, and the government has forecast 
little improvement over fee next year. * 
Prime Minister John Howard, whG 
touched off a dispute over race in 198* 
when he criticized high Asian immii- 
eration levels, cut immigration levelf 
just months after winning office in 
March 1996, when he announced an 11 
percent reduction for 1996/97. 

Under Mr. Howard’s administration, 
the proportion of immigrants allowed 
into Australia for their work skills has 
jumped to more than half of the total 
number from one third in the last year of 
the farmer Labour government. ’ 

The number of immigrants allowed 
into Australia for family reunions -yff- 
which have favored Asian migrants in 
recent years — will fell to 47 percent of 
the total in 1997/98 from almost 70 
percent in 1995/96. ; 

‘The government has further 
strengthened the emphasis cm the skilled 
intake, while main taining a committ- 
ment to bona fide immediate family 
migrants,” Mr. Ruddock said | 


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RAJIV GANDHI RECALLED — Sonia Gandhi, left, and her daughter 
Priyanka at a memorial to the prime minister who was slain in 1991. 


Tolebon Soys It’s Bptteriftg 
Rivals in North Afghanis tan 

ISLAMABAD, Pakistan — The Taleban militia 
and its new allies hammered away at a warlord’s 
battered front line in their effort to control the 
northern third of Afghanistan, Taleban officials 
said Wednesday. 

The Islamic Taleban fought General Abdul 
Rashi d Dustam’s forces cm the edge of his home 
-province, Jowzjan. The anti-Taleban alliance was 
taking a beating on a second front, in central 
Barman Province, and lost a strategic pass, ac- 
cording to a Taleban spokesman in Pakistan. 

The anti-Taleban alliance — and with it General 
Dustam’s northern empire — began to crumble 
Monday when a key general defected to fee Tale- 
ban with thousands of soldiers and several key 
commanders. 

General Dustam’s ally, Ahmed Shah Masoud, 
has sent reinforcements to help bolster General 
Dustam’s western flank, a spokesman said. (AP) 


Cooling the Kurils Feud 

TOKYO — Russia will withdraw some of its 
troops from islands at the heart of a territorial 
dispute wife Japan, the head of the local gov- 
ernment of fee islands told Japanese reporters. 

Vladimir Zema, chief of the South Kurils Dis- 
trict, told the reporters visiting fee islands feat the 
two army units on Kunashiri would be pulled out by 
the end of June, fee daily Asahi Shimbun reported 
Wednesday. The reporters were accompanying the 
Hokkaido governor, Tatsuya Hod. 

The dispute over the islands north of Hokkaido, 
called the Kurils tty Russia and fee Northern Ter- 
ritories by Japan, has invented the countries from 
signing a World War II peace treaty. Russia has 
3500 troops on fee islands. (Reuters) 

Manila to Battle Abductors 

MANILA — President Fidel Ramos ordered the 
army Wednesday to take over fee campaign against 
kidnapping gangs in fee southern Philippines after 


a senior aide admitted fee situation had worsened.'! 

Interior Secretary Robert Barbers recommended ^ 
fee use of the army, saying bigger and better-' 


■Ti l % 


rebels who have kidnapped 38 people, mostly busi- 
nessmen, in the region since January, fee pres- 
idential palace said. “Insurgents and other lawless 
groups have resorted to kidnapping to advance their 
cause and to destabilize local society,” Mr. Barbers 
said in his report to Mr. Ramos. (Reuters) 

Seoul Specifies Food Offer 

SEOUL — The Red Cross of South Korea said ; 
Wednesday that it would offer 1,000 metric tons of 
flour to North Korea at a meeting wife the North's 
Red Cross in Beijing on Friday. 

The last round of talks, on May 3 and 5 and also 
held in Beijing, broke down after fee North de- ’ 
manded to know the exact amount of aid it could 
expect before discussing moves to speed up de- 
livery . The South has since agreed to reveal fee size - 
of its donation, worth $392,000. (Reuters) 


Personals 


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INTERNATIONA L H ERALD TRIBUNE, THURSDAY, MAY 22, 1997 

EUROPE 


PAGE 5 


A Harmony Erupts on Euro as French Vote Nears 




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By Craig R.WhiS^ 

* >crA Timrs .W ,.,-. * 

^SSW-c^ - 

S5S»sr5 

cl<^T»Sth , tl Campaign draws to a 
govexnmeni and the 
g^osition are singing mostly the 

iEfESP 0 * ^ new mone y. one 
Jh^hardly sounds like music to 
uer man ears. 

^“ When ^Pe was synonymous 
with economic growth and prosper- 
ity’ people were enthusiastic and 
eve^body wanted to join it,” the 

ft-V Iearf er, Lionel 
Jospin, told a group of students in 
.ftis university city this week. “For 
*e past 10 or 15 years, there has 
been only a narrow accountants' vi- 
sion of Europe, and a too-narrow 
concentration on the monetary is- 
,sue. 

Prime Minister Alain Juppe, the 
.ftmiservative whom Mr. Jospin 
l^pes to replace, has sounded much 
-me same note: * 1 We must affirm that 
Europe, like other great economic 
jzonesof the world, has a vo catio n 
for strong growth. One of the ways 
of doing this is to make the euro an 


instrument for growth," 

Many people in Germany fear 
that French fiscal softness could 
produce a euro weaker than the 
Deutsche mark, and the daily Frank- 
furter Allgeraeine Zeitung warned 
Tuesday, as Chancellor Helmut 
Kohl met with Mr. Chirac in Paris, 
that a Socialist victory in die French 
elections would produce tensions in 
the Franco-German relationship. 

Mr. Jospin and Mr. Juppe both 
said in campaign appearances this 
week that France did not want the 
euro to be so strong that it priced 
French products out of global export 
markets or strangled domestic eco- 
nomic growth. They also agreed that 
France did not want anonymous 
central bank bureaucrats to have the 
sole power of decision over Euro- 
pean monetary policy, as the Ger- 
mans have insisted. 

The Socialist leader told the daily 
Le Monde that if he became prime 
minister, he would not feel bound by 
pledges Mr. Chirac and other Euro- 
pean leaders agreed to at the end of 
last year, at German insistence, to 
keep a tight squeeze on inflation and 
budget deficits even after the euro 
comes into being. At Mr. Chirac's 
side, Mr. Kohl said Tuesday that he 
saw no reason to renegotiate the 
agreement 

Mr. Jospin told 2,000 cheering 


supporters that victory was within 
reach if the Socialists won at least 30 
percent of the vote this Sunday. That 
is higher than the showing predi c t e d 
by opinion polls last week, bat it 
could put them and their Communist 
allies within striking distance of a 
majority in the 577-sear legislature 

Lionel Jospin, the 
Socialist leader, and 
Prime Minis ter Alain 
Juppe are finding 
common ground on 
the proposed currency. 

in the second round of voting June 1 , 
he said. 

"Do we insist that Italy and Spain 
have to be in the euro? They say 
that's what they want," Mr. Jospin 
said, meaning the government. ‘ ‘We 
said we didn't want the euro over-' 
valued against the dollar, so that the 
United Slates could take advantage 
of it and grab markets from us, and 
they say that's what they want, 
too." 

Mr. Jospin skipped over his own 
differences with the Communists, 
whom he would need to form a 


man. currency ou 


f oppose 
trighL In 


Instead, the 


Socialist chief seemed to be trying 
to turn the campaign into a ref- 
erendum on the unpopular Mr. 
Juppe, whom be blamed for driving 
unemployment up to 12.8 percent. 

Mr. Juppe, meanwhile, has been 
trying to steal Socialist thunder. The 
euro, be promised, would stimulate 
strong growth in France and all over 
Europe, and monetary policy would 
not be left entirely to central 
bankers. 

"We cannot leave everything up 
to the European central bank,“ he 
said. ‘ ‘There should be an economic 
government for Europe, as we have 
been asking for months and have 
now begun to obtain." 

Mr. Juppe apparently was de- 
scribing die periodic meetings of 
finance ministers and heads of gov- 
ernment to discuss the progress of 
the euro, which is to be managed by 
an independent central b ank. But he 
used precisely the words of the So- 
cialist election platform — "an eco- 
nomic government for Europe." 

France had to reduce its deficit in 
part because Germany insisted on 
strict independence for the central 
bank and deficit limits for countries 
that warn to join the currency pact 
The German insistence caused Mr. 
Chirac to put France through the 


economic wringer and raised 
doubts, fueled by skepticism in 
Boon, about whether Italy and Spain 
would qualify. 

Mr. Juppe did not, as Mr. Jospin 
claimed, say that those countries 
should be among tbe first to join, but 
he said that monetary union would 
rule out a repetition of the devalu- 
ations of the Italian lira since 1992 
that have harmed French exports. 

Germany, whose budget deficit 
this year may not be under the 3 
percent of gross domestic product 
required to join The common cur- 
rency, raised the possibility last 
week that a revaluation of tbe huge 
gold reserves of the Bundesbank 
might help do the trick, causing cyn- 
ical amusement in Italy. 

The revalued reserves, said to be 
almost S2S billion below their mar- 
ket value on the German central 
bank's books, would not affect the 
current federal budget, Mr. Kohl 
said, and no gold would be sold off 
to cut tbe deficit. 

In France, conservatives say Mr. 
Jospin's campaign pledges to create 
700,000 new jobs, reduce the work 
week from 39 to 35 hours and keep 
salaries at current levels- are leger- 
demain, and this week Mr. Jospin 
acknowledged that he could not 
keep all these promises simulta- 
neously. 


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Stunned Shopper 
Gets Harrods’Boot 

The Associated Press 

LONDON — Eilene Kadden, a confident size 
1 8, contends that the Hanrods department store here 
threw her out because of her size, newspapers 
reported Wednesday. 

"It was so humiliating," Ms. Kadden was 
quoted as telling The Express. “A bodyguard took 
me by tbe aim and asked me to leave die store." 
Hamids said she had been expelled for violating tbe 
store’s dress code. 

The angry shopper, whose story appeared in at 
least five newspapers, was pictured on the front 
page of Tbe Times standing in front of tbe de- 
partment store in what appeared to be the offending 
outfit — - brown leggings and a loose long-sleeved 
white shirt decorated with embroidered cacti. 

"It was complete discrimination against larger 
women,” the Los Angeles resident said. I was 
looking classy and funky and smarter than other 
shoppers in worn jeans and dirty tennis shoes. " Her 
leggings had been bought in Harrods, she added 

Ms. Kadden’s mother, who is smaller but was 
similarly attired, was shopping with her and was 
not asked to leave, the newspapers said 



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Eilene Kadden, the expelled shopper, ontside the store. 


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Legal Threat to Turkey’s Islamic Rulers 



The Associated Press 

ANKARA — In a major challenge to 
Turkey's Islamic political leaders, a 
prosecutor asked the country’s highest 
court on Wednesday to ban the gov- 
erning party. 

The challenge to the Islamic Welfare 
.Party added a new level of tension to the 
conflict between secularists and Welfare 
politicians, including the prime minister, 
who are seeking to put a stronger 
Muslim stamp on Turkey. 

Tbe prosecutor, Vural Savas, filed an 
18-page indictment, accusing the parly 
of violating Turkey's constitutional 
principle that the state is democratic and 
secular. "Welfare has become the center 


Labour Promises 
To Scrap by 2005 
All Landmines 

Reuters 

LONDON — The new Labour 
government promised Wednesday 
to destroy all Britain’s anti-person- 
nel landmines by 2005. pursuing its 
pledge to put human rights at the 
' center of foreign policy. 

■ The previous Conservative gov- 
ernment had also vowed to scrap its 

' stocks of landmines but gave no 

target date. . 

It had also reserved tire right to 
replace the weapons with “smart 
mines," which automatically det- 
onate after a certain period, but tbe 
’ new government said it would shun 
these replacements. 

“They have done enormous 
carnage, often to wholly innocent 
civilians, including children. 
Prime Minister Tony Blair told Par- 
liament . . 

“The sooner that Britain gives a 
lead in this, the better. It is the right 
and the civilized thing to d°.”_ ; 

Since it took power this month. 
Labour has stressed the need for 
action on landmines, which are 
blamed for killing 25,000 people a 
vear and maiming many more. 

The Red Cross estimates that 
there are 120 million mines m the 
around across the world, many of 
them in such war-torn countries as 
Angola and Cambodia. 

Mr. Blair said the government 
would ban tbe import, export and 
manufacture of landmines, but in 
reality this does not represent muen 
of a policy change since Bntem has 
not bought, sold or built the 
weapons for several years. 

Analysts say the shift on smart 
mines is more significant since it 

said, however, that tbe anned forces 
retained the right to use landmines 
in exceptional circumstances. 


of anti-secular activities leading the 
country into a civil war atmosphere," 
Mr. Savas said. 

Prime Minister Necmettin Erbakan, 
who is also Welfare’s leader, said the 
indictment surprised him and did not 
reflect reality. '‘Welfare is a truly sec- 
ular party- It is the guarantor of sec- 
ularism.” Mr. Erbakan said. 

YektaGungorOzdeu, chief justice of 
the Supreme Court, said the court would 
issue a decision in six months. Analysts 
called the challenge a serious one. 
"There seems to be enough legal stand- 
ing for the constitutional court to shut 
down Welfare," said Yavuz Sabuncu, a 
professor of constitutional law. 


Ex- Aide to Yeltsin, a General, 
Said to Be Held in Bribe Case 


Reuters 

MOSCOW — Military prosecutors 
issued an arrest warrant Wednesday for 
General Konstantin Kobets, a one-time 
aide to President Boris Yeltsin who is 
being charged with bribery, the Interfax 
news agency said. 

Interf ax said General Kobets, 57, dis- 
missed by Mr. Yeltsin as a deputy de- 
fense minister and expelled from the 
armed forces, had been taken to a Mos- 
cow detention center for further inves- 
tigation. The agency's report could not 
be confirmed immediately. 

■ “'F inancial Brain'’ of tbe Army 

David Hoffman of the Washington 
Post reported: 

Mr. Yeltsin fired General Kobets ou 
Tuesday after prosecutors alleged that be 
had taken an expensive country house as 
a bribe in return for a military housing 
contract. Prosecutors brought corruption 
charges Friday against the general, who 
is undergoing treatment for hypertension 
at a hospital near Moscow. He has called 
the charges “complete rubbish.” 


General Kobets was ousted from die 
Soviet Defense Ministry in 1991 after he 
associated himself with Mr. Yeltsin 
when Mr. Yeltsin was challenging the 
Soviet leader, Mikhail Gorbachev. 

He was among those who stood be- 
hind Mr. Yeltsin during a 1991 Kremlin 
coup attempt and later served briefly as 
his military adviser. In September 1992, 
he was made chief military inspector 
and, according to the daily newspaper 
Kommersant, he was known as “the 
financial brain of the army.” 

The chief prosecutor’s office accused 
General Kobets of bribery, abuse of of- 
fice and illegal possession of a fi re a rm . 
Tbe charges stem from alleged attempts 
to steer army contracts to Lyukon, a 


ing for soldiers returning from Eastern 
Europe. Investigations by news orga- 
nizations have suggested that much of die 
proposed housing never materialized. 

The general is chaiged with receiving 
a $241,000 country bouse near Moscow 
in February 1995 m exchange for belp- 
ing.Lyukoo obtain a contract 


Moscow Sorry for Halting Chechen Plane 


Agence France-Presse 

MOSCOW — Moscow apologized 
Wednesday for an incident in which 
Russian fighter jets intercepted a plane 
rating a Chechen delegation to an in- 
ternational conference in Tbe Hague, 

and said the trip could go ahead. 

The incident Ttate Tuesday was the first 
dispute since the signing of a peace 
agreement on May 12 that formalized 
the cease-fire reached last August end- 
ing the 21-month war between Russia 
and Chechnya. The ageement did not 
resolve the issue of Chechnya s inde- 
nendeuce, over which die war was 


Eught, but said thej^tiem would be 

Amanov, who was *edd^ 

gation to the Netherlands, described the 


incident as a “gross and shameful vi- 
olation* ’ of thejpeace accord and ordered 
all Russian officials out of Chechnya. 

Tbe plane was on its way freon 
Grozny, the Chechen capital, to Odessa, 
Ukraine, where it was to make a stop- 
over before continuing to The Hague for 
a four-day conference on the Chechen- 
Russian conflict. 

Shortly after taking off, the plane was 
ordered to land in the southern Russian 
town of Mtneralnoye Vody and submit 
to a customs inspection, or return to 
Grozny. Tbe plane made the return. 

Itar-Tass, the Russian press agency, 
quoted the Kremlin’s representative in 
Grozny as saying that a team of Russian 
customs officials had arrived in the city 
and that the Chechen delegation was 
now free to leave for Tbe Hague. 


Pro- Westerner Chosen 
As Bulgaria’s Leader 


The Associated Press 

SOFIA — Parliament 
elected die pro-Western Ivan 
Rostov as prime minister 
Wednesday and approved his 
cabinet arid program. It en- 
visages swift market reforms, 
membership in the European 
Union and NATO and reduc- 
tions in crime and corruption. 

The 240-seat chamber 
voted 179-54 to elect Mr. 
Rostov, whose two-party co- 
alition won 137 seats in elec- 
tions in April. In another bal- 
lot, the lawmakers voted 179- 
55 to approve Mr. Rostov’s 
ministers. 

Only the Socialists voted 

against him. 

Mr. Rostov, 48, succeeds 
Stefan Sofiyanski, the pop- 
ular interim prime minister, 
whose government managed 
to regain Western confidence 


in Bulgaria's will to make re- 
forms. 

Mr. Rostov, an economist, 
served as finance minister in 
two governments from 1990 
to 1992. In 1994 he blended 
15 parties into a united force 
to challenge the Socialists. 

“Our goal is for Bulgaria to 
step into the new millennium 
as a civilized European coun- 
try," he told Parliament, 
stressing the country's desire 
to join both the EU and tbe 
North Atlantic Treaty Orga- 
nization. 

He added that his govern- 
ment would pursue stability 
by introducing a board on Ju- 
ly 1 to halt the financing of 
fiscal deficits by central-bank 
loans and to tie domestic 
money supply to foreign-ex- 
change reserves through & 
fixed exchange rate. 


Albania to Vote on Monarchy 

TIRANA. Albania — President Sail Berisha has made 
an important concession ahead of June elections, but it is 
uncertain if he can persuade the opposition to take part in 
the vote. 

Mr. Berisha signed a decree Wednesday for a ref- 
erendum on monarchy to be held together with the 
elections for a new Par liam ent. Hie opposition, led by the 
Socialists, has threatened to boycott the voting over an 
election law adopted by Parliament, which is dominated 
by Mr. Berisha ’s Democratic Party. 

The caretaker prime minister in the all-party gov- 
ernment, Bashkim Fino, threatened to resign after talks 
failed to resolve the differences. But the international 
envoy Franz Vranitzky, Prime Minister Romano Prodi of 
Italy and a senior U.S. diplomat. Assistant Secretary of 
State John Komblum, persuaded him to stay on, a spokes- 
man for Mr. Fino said Tuesday. (AP) 

Labour Opens Inquiry on MP 

LONDON — Prime Minister Tony Blair said Wed- 
nesday that he would take firm disciplinary action against 
a Labour Party member of Parliament if inquiries into 
allegations of bribery found any improprieties. 

The lawmaker, Mohammed Sarwar Jias acknowledged 
making a £5,000 ($8,270) loan to a rival candidate in the 
May I election in his Glasgow constituency. 

Both the authorities and the party’s National Executive 
are looking into allegations tbe money was intended as a 
bribe. Mr. Sawar is suing a newspaper over the al- 
legations. "Whether or not there are police charges and 
convictions, if there is any impropriety found by us, there 
will be disciplinary action." an aide to Mr. Blair said. 

(Reuters) 

Venice Separatists Go on Trial 

MESTRE, Italy — In a courtroom used in the past for 
terrorist trials, eight Venetian separatists who took over the 
bell tower in Sl Mark’s Square went on trial Wednesday 
on charges that could being up to 20 years in prison. 

The eight men, ranging ui age from 23 to 55, are 
charged with hijacking, arms possession, occupation of a 
public place and armed threats in tbe May 9 incident. They 
hijacked a ferry and used it to transport an armored vehicle 
to the square. They occupied the tower for seven and a half 
hours before police commandos seized them. 

The court rejected a defense petition that the de- 
fendants be released from jail. The next session of the trial 
was set for June 3. (AP) 

U.S . Envoy to Austria Quitting 

VIENNA — The UJ5. ambassador to Austria, Swanee 
Hunt, said Wednesday that she would leave in the fall to 
teach at Harvard University’s Kennedy School of Gov- 
ernment. 

Ambassador Hunt, 47. the daughter of the oil bil- 
lionaire H.L. Hunt and a generous donor to the Demo- 
cratic Party, was named to the post in 1994. 

She charmed many Viennese during her tenure and is 
generally considered to have improved U.S.-Austrian 
relations. She gained prominence for an apology — 
"Sorry guys, no gold" — when she acknowledged last 
year that the United States had set up dozens of secret 
arms caches in Austria in the 1950s, apparently as pro- 
tection against a Soviet invasion. The caches did not, as 
widely rumored, contain any gold bars. (AP) 


Tbe indictment refers to anti-secular 
statements made by Mr. Erbakan and 
party members. The prime minister has 
alarmed Turkey ’ s establishment with his 
moves to ease bans on Islamic clothing 
and to promote Islamic education. In 
February, the National Security Council, 
whose members include top generals, 
issued directives to halt atteflmts to make 
the country more Islamic. Mr. Erbakan 
has generally resisted the orders. 

The development on Wednesday 
came a day after Mr. Erbakan’ s coalition 
survived a censure motion in Parliament. 
The motion was brought by opposition 
parties, which accused the government 
of undermining secularism. 


ggar 

nun 


You could win an elephant and a trip to Thailand (on a Jumbo) simply by reading the IHT. Look out for the incoming ads. 





INTERNATIONAL 


Kabila Drafts Cabinet; 
Students Protest Killing 

Aide Dismisses Idea of One-Party Rule 
But Hints There’s to Be No Early Vote 


Reuters 

KINSHASA, Congo — Laurent Kab- 
ila worked on the first government of the 
new Democratic Republic of Congo on 
Wednesday, but in the city of Kisangani 
students protested, in one of the first 
signs of popular opposition. 

Officials said Mr. Kabila, whose rebel 
forces entered Kinshasa on Saturday, after 
President Mobutu Sese Seko fled the pre- 
vious day. met his top advisers at his new 
riverside headquarters. He had promised 
to unveil foe government by Tuesday. 

Aid workers in the northeastern city of 
Kisangani said more than 100 students 
protested peacefully against the alleged 

French Demands 
Relayed to Kabila 

Reuters 

PARIS — France ordered its ambas- 
sador to Kinshasa on Wednesday to de- 
mand that Laurent Kabila, who has de- 
clared himself president, protect French 
nationals and refugees after two French 
businessmen were killed in the capital. 

The Foreign Ministry spokesman, 
Jacques Rummelhardt, told a briefing: 
“Our ambassador in Kinsh asa is going 
to contact the new Congolese authorities 
at foe highest level to transmit die fol- 
lowing message: first, to express our 
distress over the killing of our two com- 
patriots and demand very firmly that 
measures be taken to ensure the French 
community's safety." 

He said the French ambassador. Micbei 
Rougagnou, also had been instructed to 
express France's deep concern at the fate 
of refugees and displaced persons in the 
east of Congo, formerly Zaire. 

He also will demand that relief or- 
ganizations and the United Nations be 
granted immediate access to the area. 

In addition, he said. ''We want the 
new authorities to respect the rules of 
democracy and organize free elections, 
monitored by the international commu- 
nity, very rapidly." 

The two Frenchmen were shot dead 
Tuesday night by men in uniform. 


killing by a Kabila soldier of a fellow 
student. They shouted “Tutsis go 
home!" aid workers added. 

France, a longtime friend of Marshal 
Mobutu’s, “solemnly” reminded Mr. 
Kabila that it was his duty to protect 
foreign nationals after two Frenchmen 
were killed by uniformed men in foe 
capital Tuesday, but French ministers dis- 
missed foe killings as isolated incidents. 

The French cooperation minister. 
Jacques Godfrain, hinted that France 
might be prepared to admit Marshal 
Mobutu for medical treatment. Marshal 
Mobutu, 66. who is in Tqgo, has prostate 
cancer. 

Foreign leaders have been pressing 
Mr. Kabila forabroad-based government 
as a step toward multiparty elections. 

“We want free and fair elections 
everybody should be proud of and par- 
ticipate in," said Mr. Kabila's foreign 
affairs adviser, Bizima Karaha. He said 
that Congo wanted a “genuine democ- 
racy." but that h would not be stampeded 
into elections for it was u npr epared. 

He dismissed suggestions that Mr. 
Kabila could embrace one-party, one- 
man rule. “We hate dictatorship," be 
said. 

Voice of Congo radio said members 
of Mr. Kabila's alliance were “in con- 
sultation with political personalities, no- 
tably Etienne Tshisekedi,” the most 
prominent member of the internal polit- 
ical opposition to Marshal Mobutu. 

Scam Africa, which has taken a lead 
in nudging Mr. Kabila toward a peaceful 
democratic transition, announced plans 
to send experts to help him rebuild the 
shattered economy . 

Mr. Kabila. 56, arrived in Kinshasa 
after dark on Tuesday from Lubum- 
bashi, his provisional headquarters on 
the Zambia border. 

His forces further consolidated their 
hold on foe capital Wednesday, when 
two senior generals surrendered. Gen- 
eral AmelaLokima, military coventor of 
Kinshasa and deputy aimed forces chief 
of staff, and General Michel Elessi, com- 
mander of Mobutu ’s forces in the capital, 
turned up at a hotel and were taken away 
by security officials, witnesses said. 



DnUCsaafalibnbtoQdttdnta 

Soldiers of Laurent Kabila’s forces preparing to cruise Kinshasa’s streets by track Wednesday. 

In Iran, a Contested Vote for President 



By Stephen Kinzer 

New York Times Service 


TEHRAN — Iranians will take a 
modest but remarkable step toward a 
form of political pluralism on Friday 
when they choose a new president in the 
most competitive election held here 
since foe 1979 Islamic Revolution. 

The choice facing voters is narrow. A 
council of religious leaders selected foe 
four candidates from 238 applicants, and 
the winner will have strictly limited 
powers. But as the two-week campaign 
iod came to an end, many I ranians 
the sense that something new was 
_ here. 

ris election is very different, be- 
cause in the past everyone more or less 
knew who was going to win before foe 
voting," said Masoud Roustai, a 30- 
year-old engineer. “The candidates are 
still approved by clerics and they all 


come from the framework of supporting 
the Islamic revolution, but in some areas, 
such as cultural freedom and privatizing 
bosmess, there are differences. It’s a step 
toward more freedom." 

No matter who wins the election, ul- 
timate power will remain in the hands of 
shadowy councils of clergymen and es- 
pecially with Ayatollah Sayed Ali 
Khamenei, the country’s “supreme lead- 
er." Under the revolutionary constitution 
here, tire president is seen as reflecting 
merely the will of the people, while 
Ayatollah Khamenei, who is not subject 
to election, reflects the will of God. 

Through the stale-controlled media 
and statements by officials close to him. 
Ayatollah Khamenei has led many Ira- 
nians to believe that he favors foe can- 
didacy of AH Akbar Nateq-Nouri, who is 
now the speaker of Parliament As a 
result Mr. Nateq-Nouri is widely 
viewed as the favorite, but his principal 


rival, Mohammed Khatami, has won un- 
expectedly broad support from women, 
young people and others impatient for 
political change. 

The other two candidates in the race, 
former intelligence chief Mohammed 
Mohammedi Rayshari and Sayed Reza 
Zavarei, a senior judge, have failed to win 
substantial support. Their weakness in- 
creases the likelihood that Mr. Nateq- 
Nouri will win a majority of votes ana 
thereby avoid a iuiKrff election. Early 
results are expected Sunday or Monday. 

Many I ranians believe that Mr. 
Khatami, who was forced to resign his 
post as mini ster of culture and Islamic 
guidance in 1992 after conservatives 
charged that he was overly permissive, 
would seek to ease restrictions on private 
life and open foe counter to more com- 
mercial and cultural influences from 
abroad. But they are sharply divided on 
whether such policies are desirable. 


MOW: Better Now That High Tech Is Here DEAL: Mania in Hong Kong Over Stock Offer by Beijing 


Continued from Page 1 

years to pay. 

Some people, like foe ABC news cor- 
respondent Sam Donaldson, just pay 
cash. 

After moving to - a new house in 
McLean, Virginia, with a bigger yard 
than foe one he had, Mr. Donaldson 
bought a $7,000 John Deere tractor with 
an 18-horsepower engine, a transmis- 
sion that lets him change gears without 
stopping and a vacuum that sucks up 
grass cuttings. 

There was one other factor. 

“You know what they say about grown 
men's toys,” Mr. Donaldson said. “I 
don't own any electric trains. But driving 
this tractor, maneuvering it around, miss- 
ing the rose bushes — this is fun.” 

Another sign that mowers have 
entered foe realm of entertainment 
vehicles comes from Simplicity Man- 
ufacturing, a Wisconsin company that 
produced a $3,200 riding mower last fall 
with official Green Bay Packers football 
logos. The machines, whose grills look 


like football-helmet face guards, sold 
out, and soon local papers carried ads 
offering used ones for $9,000. Now the 
company has expanded die line to in- 
clude nine pro teams and six college 
teams. 

The Outdoor Power Equipment- In- 
stitute in Alexandria, Virginia, projects 
that Americans will buy 1.2 million of 
foe more powerful front-engine riding 
mowers this year, double foe number 
sold just over a decade ago. The trade 
association president, Dennis Dix, said 
the trend would very likely continue as 
long as the economy stayed good and 
>le had extra cash. 

Sot walk-behind mowers are not 
about to disappear. The industry still 
sells a steady 5 million of them a year. 

Mr. Bacon pointed to foe basic $299 
red Toro and nostalgically recounted 
how he had no problem cutting an acre 
and a half with one like that in the 
1970s. 

“That was the Cadillac of mowers 
then," M. Bacon .said wistfully. 
“That's the low-end now.” 


FILM: Russians Awash in Nostalgia 


Continued from Page 1 

are layered with propaganda of the era. 
Their stilted socialist -realist message is 
far from the wild capitalism of the new 
Russia. In effect Russians must root not 
only through the attic of their memory, 
but through that of a country and a 
system that no longer exist 

“This doesn't mean that people want 
to go back to that life," said Alexander 
Gehnan. a playwright who had an im- 
portant early role in the policy of glas- 
nost, or openness, of the last Soviet pres- 
ident, Mikhail Gorbachev. “1 think it's 
even to foe contrary, this nostalgia means 
it’s impossible to go back to that life. The 
more nostalgia there is, the fewer chances 
that society will return back. 

“Nostalgia begins when there is no 
opportunity to turn back.” ✓ 
“These are good films, made to some 
kind of Hollywood standards,' ' he con- 
tinued. “They are sad, but not very sad. 
Or they have a happy ending. These are 
not films that show the truth of life. Sirx* 
life right now is complicated and dif- 


Palestinians Detain 
A TV Broadcaster 

Washington Post Service 

JERUSALEM — A Palestinian- 
American journalist, Daoud Kuttab, 
who has been fighting efforts by the 
Pal estini an Authority to jam his 
broadcast of unflattering television 
debates, was arrested Wednesday 
after being summoned to see the 
police commander in R ama l l ah. 

Hours later, after a one-day 
pau se , the Palestinian self-rule au- 
thority resumed jamming Mr. Kut- 
tab's independent station, which , 
broadcasts uncut floor debates from . 
the elected Palestinian legislamre- 
In Wednesday’s broadcast, law- 
makers were cfiticiang Yasser Ara- 
fat’s ministers for lavish use of cars 
and ocher perquisites of office. 


ficult, people watch these fairy tales with 
pleasure." 

Russian television is blanketed with 
old Soviet movies of this genre. Four of 
the five most popular films shown on 
Russian television in 1996 were Soviet 
classics, according to Russian television 
market surveys. 

The lop-rated film was “Striped Voy- 
age." a late 1950s comedy about tigers 
who are let loose accidentally on a trans- 
port ship. In second place was tire 1984 
American hit “Police Academy." 2kz 
third was “Hard. to Educate," a mid- 
1950s Soviet comedy about a giri who 
gets an assignment from her cell in the 
Communist Youth League, the Kom- 
somol , to improve the morals of two 
fellows who are considered “diffi- 
cult.” 

In fourth place was “White Sun of the 
Desert." about a Red Army soldier 
fighting in Central Asia during the Rus- 
sian civil war, and ranked fifth was 
“Carnival Night,” a 1956 musical in 
which a bureaucrat tries to cope with the 
carefree atmosphere of a New Year’s 
Eveparty. 

Moreover, Russian television still fre- 
quently broadcasts such Soviet classics 
as “Cossacks of the Kuban," a 1949 
movie about collective farm life set in a 
rural trade fair that is filled with sugary 
smiling faces and a holiday atmosphere. 
The devastation of Stalin's collectiviz- 
ation of agriculture never intrudes. 

Hie film ignores the hardships of the 
period at the end of World War D and 
portrays the hard-working farmers as 
enjoying abundance. It opens with 
scenes of vast, golden harvests, mighty 
threshing machines and brightly singing 
workers that are f amili ar to generations 
of Russians, even if they were at odds 
with the reaiity of the era. 

“We used to watch the same films 
with different feelings," said the writer 
Vladimir Voinovich. “With irritation, 
maybe with enmity- We refused to ac- 
cept what they were trying to feed us. 
But now we watch them like fairy tales 
— the political message no longer mat- 
ters. ‘Cossacks of the Kuban’ is kitsch of 
foe Soviet times.” 


Continued from Page 1 

quarter of the franchises for 
McDonald’s Corp.’s 30 out- 
lets in Beijing and the rights to 
60 percent of ticket sales at a 
section- of the Great Wall of 
China that drafo -4 millio n 
tourists a year. 

But they do know that the 
company carries the clout of 
some of the Communist lead- 
ership that will take control of 
this tenitoty after June 30, 
and that this is not likely to 
hurt prospects for the com- 
pany s future share {nice. 

“I have no idea what this is 
all about, but my daughter 
told me I should apply,” said 
M. Yiu as he stood in line 
outside Standard Chartered 
Bank to collect a form. “It'sa 
kind of gambling." 

The rewards can be instant- 
aneous for foe lucky few who 
receive even the minimum al- 
location of 2,000 shares. In- 
stitutional investors are 
already privately trading the 
stock at more than three times 
dm 12.48 Hong Kong dollars 
($1 .6 1) offer price, betting foe 
shares will nse further when 
they start trading next 
Thursday. 

“Everyone's going berserk. 
They think it’s free money,” 


stretched on fundamentals,” 
said Gary CoulL chairman of 
Credit Lyonnais Securities 
(Asia) Ltd. “At some stage, I 
foinkthese deals being done 
right now will be foe high- 
water mark of. China fimd- 
Taising.” 

Indeed, there are some om- 
inous precedents. 

In 1993, investors put up a 
record $31 billion for a 
chance to buy shares of Den- 
way Investment Ltd., a 
Chinese car manufacturer. 
The company has lost money 
every year since it sold 


shares, and its stock never re- 
turned to foe 2.70 dollars peak 
it hit on its first trading day, 
tumbling as low as 34 Hong 
Kong cents last July. • 

The strong demand for 
Beijing Enterprises could 
also wreak havoc with Hong 
Kong's money supply as ap- 
plicants withdraw billions of 
dollars from banks to pay for 
the applications. 

The Hong Kong Monetary 
Authority, the territory's de 
facto central bank, said it re- 
minded banks to be cautious in 
their lending to customers and 


would monitor the situation. 

“If the market is lacking in 
liquidity, the HKMA will 
provide it," said Thomas 
Chan, a spokesman for the au- 
thority. 

The authority can inject cash 
into Hong Kong’s monetary 
system through open-market 
operations if needed, and banks 
can borrow money overnight 
by selling so-called exchange- 
fund notes. When the Gitic 
share sale drew a similar rush 
of applications in March, it 
drove three-month lending 
rates to a I5-nxmth high. 


Arab Sellers 
Of Land Arc! 
‘Traitors,’ 
Arafat Saysi 

The Associated Press 

JERUSALEM — In an intervi 
published Wednesday, Yasser Ara 
justified the death penalty for Arabs w! 
sefi property to Jews, saying it v 
legitimate defense against Israeli 
confiscation. 

A Palestinian land dealer was 1 
this month on suspicion of having 
land to Jews. Israel has accused 
Palestinian Authority of xnvolvem 
the death, and Prime Minister Ben 
Netanyahu has said the death 
provision was “monstrous.” 

The Israeli cabinet secretary, 
Naveh, said Wednesday that the 
esrinian Authority’s decision to 
the death penalty “reeks of anti' 

ICTfl. 

Mr. Arafat, however, said the 
penalty was not new to the West B; 

He said it was imposed by Jordan Si 
1967, after Israel captured the temtray 
from Jordan. 

He also said prosecuting those vs 
sold land to Jews was a legitimate < 
fense against Israeli policies. 

“Israel has always confiscated Is 
from Arabs and dispossessed them 
their property,” Mr. Arafat said in Jji 
interview with die daQyYediotAhioiMi 
“The land always goes from foe Arm 
to foe Jews.” 2 j 

“How should we call our own whj 
serve the Israeli policy of disposses- 
sion?” Mr. Arafat added. “They 
isolated traitors and we win act ag 
them according to the law. It is our 
and our obligation to protect our 

■ Israeli Agency’s Property Titki 

Amid an increasingly deadly las 
struggle between Israelis and Paiestft 
ians, an laaeli public agency reveal^ 
Wednesday that it had title to a sig- 
nificant amount of property in the WS 
Bank and Jordan, Agence France-Press$ 
reported from Jerusalem. 3 * 

The Jewish' National Fund, a c 
state agency which owns about 17 __ 
cent of all land in Israel, holds tides 
about 1,000 hectares (2,500 acres) ^ 
land purchased in the 1920s northeaster 
Amman, said Haim Cohen, chairman hi 
a fund subsidiary. 

But a fund official said there were n{> 
plans to lay claim to the p roperty. “We 
don’t want to spark a crisis between oufr 
two countries,'’ he said. Israel arid 
Jordan signed a peace treaty in 1994.’i ■ 

M. Cohen said the fund also bel0 
ritles to land in West Bank areas handed 
over to Pddstiniah control under -!&e 
Oslo accords. “We hold major pi 
isitiesmBethIefaem,feacho, Hebron 
other strategic sites,’’ fie said. 


BRIEFLY 


HONG KONG: Transparency Problems in View 


Beijing Enterprises shares for 
the funds he manages at Credit 
Lyonnais International Asset 
Management Ltd. 

The enthusiasm could be 
justified. Shares in Gitic En- 
terprises Ltd, a construction 
company controlled by south- 
ern China's Guangdong 
Province, surged fivefold on 
hs first day of trading in 
March. Several other China- 
backed companies, including 
Beijing Nonh Star Co. and 
Shum Yip Investment LuL, 
conferred similar immediate 
rewards. 

Loren Lee, an accountant, 
collected 21 forms from Per- 
egrine Capital Ltd., co-man- 
ager of the sale, by waiting in 
line seven times to pick up 
three at a time, the maxim um 
Peregrine would allow. 

“I’m getting applications 
for myself, for my co-work- 
ers, far my relatives and for 
my friends." she said. “It's a 
certain way to make a profit, 
because foe selling price is 
just 12.48 dollars." 

In feet, the offer price is 
already 62 percent above the 
value of foe company’s assets 
and is equivalent to 19.4 
times the company's estimat- 
ed eanrings per share for the 
year. The 33 companies that 
make up Hong Kong’s Hang 
Seng stock index trade at an 
average of 16 (fanes their 1996 
earnings. 

“Beijing Enterprises is a 
rood company, but foe mul- 
tiples and the price at which 
it’s going to end up trading at 
in foe market is pretty 


Continued from Page 1 

up at China Everbright, die 
market could never have ex- 
pected it to make a purchase 
on the scale of Hongkong 
Telecom and bad not priced 
foe transaction into the share 
price of Everbright's so-called 
red-chip subsidiaries, which 
are traded in Hong Kong. 

Instead, shares of one of die 
subsidiaries, China Everbright 
Technology, soared 51 per- 
cent after the deal’s announce- 
ment, then dropped sharply 
after an announcement last 
week that foe subsidiary was 
not negotiating to buy the 
stake in Hongkong Telecom. 
The subsidiary's Chinese par- 
ent, China Everbright Hold- 
ings, which belongs to 
China’s State Council and is 
not traded, is expected to pick 
up the tab for die acquisition. 

On Wednesday, China 
Everbright Technology’s 
shares rose 11 Hong Kong 
cents to close at 1.58 dollars 
(20 U.S. cents). 

“The old days of Hong 
Kong being a bunch of co- 
lonial blue chips is gone," 


said Ian Weaham, head of re- 
search at BZW Asia Ltd. in 
Hoag Kong. “The fact that 
you’re getting more red chips 
is making life more interest- 
ing for research analysts.” 

Foreign banks in Hong 
Kong also are finding such 
activity interesting because 
Chinese companies are expec- 
ted to need loans to finance 
some of their big purc hases. 

Red chips such as CTTIC 
Pacific Ltd and China Ever- 
bright, both controlled by 
China’s State Council, are 
able to capitalize on foeir ex- 
cellent political connections 
to get quick credit either be- 
fo re or after a big purchase. 

CITIC, the Hong Kong-lis- 
ted unit of China International 
Trust & Investment Corp.. led 
the way when it made its first 
purchase of Hongkong Tele- 
com shares in the late 1980s. 
At the time, it managed to 
arrange a syndicated loan 
with hardly any assets other 
than its political connections: 
Its chairman is the son of 
China’s vice president 

Today, bankers are still lin- 
ing up to lend to China in hope 


of obtaining more underwrit- 
ing and possibly retail busi- 
ness on the mainland “It’s not 
that difficult to find obliging 
bankers,” said an analyst at a 
U.S. brokerage who asked not 
to be named “Nowadays it 
pays to be in the syndicate for 
these sort of deals. You’re on 
China's good side." 

After it paid $2.1 billion in 
January for a fifth of Hong 
Kong’s biggest electric com- 
pany , Ch ina Light & Power 
Co_, OTIC found itself highly 
leveraged It then quickly bor- 
rowed $1.62 billion from a 
syndicate made up of just five 
institutions: HSBC Holdings, 
Hang Seng Bank, Chase Man- 
hattan Bank, Banque Na- 
tionale de Paris and IP. Mor- 
gan Securities. 

In Hong Kong’s financial 
world staying on China’s 
good side has entailed hes- 
itating to criticize the Chinese 
government’s policies or 
companies. As foe businesses 
of stock analysis and secu- 
rities underwriting exist side 
by side, a harsh word about a 
Chinese company from an 
analyst could jeopardize fees. 


ULSTER: British and Sinn Fein Discuss Truce 


Continued from Page 1 

Sinn Fein delegation, who 
was elected to the British Par- 
liament on May 1, was less 
forthcoming. 

But be made it clear that he 
was pleased to be talking to 
senior British civil servants 
who were now working for 
Mr. Blair's Labour govern- 
ment, not the departed Con- 
servative government of John 
Major. 

“We were very conscious 
that they are now working for 
a new set of employers, not a 
government that had a mil- 
itaristic approach," be said 
’ ‘There is a very strong desire 
in Sinn Fein to overcome these 
difficulties," he added refer- 
ring to the absence of a cease- 
fire and foe entry of Sinn Fein 
to foe formal peace talks that 
are to resume June 3. 


Both Mr. McGuinness and 
Ms. Mowlam said they 
doubted that Sinn Fein would 
be allowed at the formal 
peace talks when they re- 
sume. an indication chat they 
did not expect a new cease- 
fire before then. 

The meeting Wednesday 
came only days after Prime 
Minister Blair surprised 
Northern Ireland politicians 
and strategists on both sides 
of foe sectarian divide in this 
Protestant-dominated 
province by inviting Sinn 
Fein to renew contacts with 
the London government 

Since that statement, Bri- 
tain has indicated clearly that 
it is ready to make some con- 
cessions to Sinn Fein to per- 
suade it to produce a cease- 
fire. 

The IRA has been inactive 
in the North since April 10. 


when it admitted that it had 
wounded a policewoman in 
Londonderry. 

Tuesday night, Britain an- 
nounced that it would move 
two IRA members from a 
prison on the mainland to one 
in Northern Ireland. 

Sinn Fein has said that this 
kind of action will help per- 
suade foe IRA to restore foe 
cease-fire it ended on Feb. 9, 
1996. 

While the British met with 
Sinn Fein on Wednesday, 
people were still voting in lo- 
cal elections important to all 
parties in this British 
province. 

Politicians of the oiher 
parties grumbled that the tele- 
vision coverage given the 
event, showing Sinn Fein of- 
ficials apparently hying to re- 
vive foe peace effort, would 
gain them votes. 


Swiss Extradite 
Rwandan for Trial 

BERN — A man wanted by 
United Nations tribunal in connect I 
tion with foe 1994 genocide ir£}[ 
Rwanda has been extradited to fac<£ y 
trial in Tanzania. Swiss officiate^ 
said Wednesday. 2 - 1 

The federal office for police afvj 
fairs said that Alfred Musema left 
Geneva by plane for Arusha 
Tuesday, escorted by two police 
ficers. He is to face trial before foe*J 
UN International Criminal Tribunal j 
for Rwanda. £| 

Once the director of tea factory iiw ! 
Rwanda, Mr. Musema was arresteC i 
in Switzerland in February 1995. 
is accused of organizing the mur-W 
ders in 1994 of ethnic Tutsi whdSl 
worked at the plantation. (APft J 

Israeli Floats Plan 
To Control Whter % 

JERUSALEM — Ariel Sharon, ag 
leading hawk in foe cabinet, ha& 

West Bank to niamtai^Istaefi con^ 
trol over water sources, a newspaper^ 
reported Wednesday. ; 

Mr. Sharon, foe infrastructures^ 
minister, raised the proposal at fej 
secret meeting several months ago^ 
to consider foe future of Israel's* 
water supplies, foe article iaS 
Ha’aretz said. * 

The meeting was attended by* 
Prime Minister Benjamin Netan-3 
yahm the finance minis ter; foe ag-** 
riculture minister and some experts* * i 
Mr. Sharon demanded that even 3 p;,j 
in areas handed over to Palestinian^ 
control, Israel should remain in- j] 
charge of water sources. His plazC ij 
would mean the annexation of aboun I 
50 percent of foe West Bank. (APf j 

Cuba Jails Dissident: 

HAVANA — A member of one! 
of Cuba's small and illegal dissident j 
groups has been sentenced to 18- { 
months prison for contempt of foeii J 
authorities and resisting the author-^ J 
ides, a dissident colleague says. 

Ana Maria Agramonte was con-r* 
demned at a trial last week and isr*f 
now in prison, Odilia Collazo of the^ i 
Human Rights Party said Tuesday.^] 
Miss Agramonte belongs to another 1 ) 
group, the Nationalist Action Move-! } 
menu and was arrested May 1. 

Dissidents have said foe aufoor-s 1 
ities arrested a dozen of foeir col-!*,^ 
leagues around May 1. when Cub^i 
celebrates international Workers V J 

^y- (Reuters ft* 

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INTERNATIONAL HERALD TRIBUNE, THURSDAY, MAY 22, 1997 


PAGE 7 






AMSUN 



A HYUNDAI 


Korea’s leading business groups are joining forces to host the Korea Summit on September 10- 
1 1 in Seoul. Held at a time of great opportunity and challenge, this important event promises 
Korean business and government leaders and their international peers a high-powered forum 
where together they can examine and discuss issues of vital importance to one of the world’s 
most dynamic economies. 


As the newest member of the Organization of Economic Cooperation and Development, and 
one . of the world’s strongest trading nations, the Republic of Korea will further accelerate 
Saegaewha, its ambitious economic liberalization effort aimed at greater globalization. 
Saegaewha will open the Korean market to foreign trade and investment and will further 
strengthen corporate Korea’s role on the international business stage. The Korea Summit will 
concern itself with the Who, Where, When, and Why’s of this remarkable undertaking. 


With unprecedented joint support of Korea’s leading conglomerates including Samsung, 
Daewoo, and Hyundai, and cooperation from the Korean Government, the International Herald 
Tribune’s Korea Summit offers sponsors and individual participants a rare opportunity to 
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PUBLISHED WITH THE NEW YORE TIMES AND THE WASHINGTON POST 


Too Easy on Beijing 


President Bill Clinton has renewed 
China's mast-favored-nation trading 
status for another year, and for good 
reason. But his decision will trigger 
sharp opposition in Congress, also for 
good reason. Simply put, the Clinton 
administration has not rntuitt good on 
its promise to balance the granting of 
trade privileges with forceful repre- 
sentation of US. interests in other areas 
of the U.S.-Ghinese relationship. 

Most nations in the world enjoy 
most-favored status with the United 
States, allowing them lower tariffs on 
goods they send to America. To deny 
the status to China would harm many 
Chinese with whom America has no 


quarrel — not least in Hong Kong, set 
torevertto Chinese authority on July i. 
Revoking the trading status is mo burnt 
an instrument to address U.S. concerns 
with Chinese behavior in hnman 
rights, nonproliferation and other trou- 
bling areas. But granting it accom- 
plishes nothing unless the administra- 
tion addresses those concerns in other 
ways, as it once premised to do. 

Mr. Clinton came to office vowing to 
attach h uman rights con ditions to most- 
jFavoned status to force the “butchers of 
Beijing” to improve their record. In 
1994 he reversal course, arguing that 
granting the status without condmons 
would give the United Stales more 
leverage in the long ran. Since them the 
Chinese record has worsened; accord- 
fog to the State Department, not a 
single Chinese dissident has escaped 
or exile, a record that even Leonid 
rezbnev’s KGB could not match. 


£ 


In a letter to Congress in 1994, Pres- 
ident Clinton said be had “cot the 
link” between most-favored status and 
human rights conditions — “but left 
human rights as a cornerstone in our 
relations with China.” Unfortunately, 
only the first part came true. 

Mr. Clinton said his adminis tration 
would expand Radio Free Asia broad- 
casting to China, press China at the UN 
Human Rights Commission in Geneva, 
promote voluntary business principles 
for American firms in China, increase 
support for Chinese civic society, high- 
light the issue of Tibet in international 
forums and “intensify our high-level 
dialogue on human rights.” On all but 
the broadcasting, the flrfmmija rarirm 
dropped the balL 

This year in Geneva it abdicated its 
leadership role, and there is little ev- 
idence that human rights play any sig- 
nificant role in the relationship. A bi- 
lateral agreement between China and 
the United States infenHad to discour- 
age exports to America of goods made 
by prison labor has not been enforced. 

The United States has a decided in- 
terest in maintaining good working re- 
lations with China, nit it is worth re- 
calling that such interests do not run 
<mly one way. About 2 percent of U.S. 
exports go to China; something like 
one-third of China’s exports come to 
America. China never “de-links” 
commercial privileges from its polit- 
ical goals. If the administration is going 
to do so, at least it should, as promised, 
stand up for its goals in other ways. 

—THE WASHINGTON POST. 


Blair’s Quick Start 


Tony Blair, the self-assured prime 
minis ter of Britain's new Labour gov- 
ernment. has set forth a plausible and 
interesting legislative program, blurred 
by fewer evasions than expected. 

“The education of young people 
will be my government’s first prior- 
ity,” said Queen Elizabeth in foe 
speech that traditionally opens a new 
Parliament. With that unambiguous 
benchmark in place, Mr. Blair's team 
proposes die bold change of giving the 
Bank of England “operational inde- 


pendence” in monetary policy, the dif- 
ficult ts 


task of devolving power to a 
Scottish Parliament and a Welsh As- 
sembly, and foe overdue objective of 
assuring “openness and transpar- 
ency” in Britain’s stubbornly secret- 
ive corridors of bureaucratic power. 

The last item is of particular interest. 
The long-outdated Official Secrets Act 
has been an all-purpose cloak for in- 
competence, corruption and, in some 
cases, treason. Yet each new govern- 
ment, an assuming power, discovers 
how useful it is to threaten leakers and 
journalists with prison tenns, and the 
sweeping law remains in place. 

Advocates of openness note with 
justifiable concern that Mr. Blair pro- 
poses a needless white paper on a free- 
dom of information measure. This step 
only invites long delay and bureau- 


cratic sc u pper in g. Similarly, the La- 
bourites propose a national committee 
of inquiry into the future of higher 
education, which could slow die mo- 
mentum of badly needed aid to schools 
whose libraries lack even copying ma- 
chines. More explicit and mare im- 
portant are pledges to reduce class size, 
raise school standards and promote 
lifelong learning in workplaces, all 
keys to sharpening Britain’s compet- 
itive edge and lowering jobless rolls. 

The trick will be to achieve these 
goals, and to raise the quality of the 
neglected National Health Service, 
without raising taxes, as Labour has 
also promised. 

But Mb. Blair has already shown 
himself a shrewd political manager. By 
proposing to give the Bank of England 
direct authority for setting interest 
rates to protect monetary stability, he 
offers a radical change that can help 
immimiTe his team from blame if a 
thriving economy begins to cooL 

By die same token, the govern- 
ment’s words on European monetary 
union and other foreign issues are de- 
liberately anodyne to keep the focus on 
the domestic front burner. With a 179- 
seat majority, Mr. Blair has ample can- 
vas on which to fill in the details on tins 
promising rough sketch. 

— THE NEW YORK TIMES. 


Gephardt Is Right 


House Minority Leader Richard 
Gephardt took the extraordinary step 
on Tuesday of breaking with the pres- 
ident and opposing the balanced 
budget agreement worked out between 
the administr ation and congressional 
Republicans. Mr. Gephardt said the 
plan would likely prove to be both 
illusory and regressive. He is right on 
both counts. 

The large late-blooming tax cuts for 
which the plan provides are the reason. 
They will add to the deficit, partic- 
ularly after the year 2002, when bal- 
ance is supposed to be achieved. If the 
budget in fact is temporarily balanced, 
their Likely effect will be to unbalance 
it all over again. That will exacerbate 
the pressure on foe spending side of the 
ledger. If the Republicans, mean while, 
do as they have said they will, and as 

ma^^b^^tfr^b^er-off. 

The president took note of the tax 
cuts in an interview with a group of 
columnists last week. He adopted what 
for him has became a classic posture, 
offering to lead his disaffected party in 
an effort to mitigate or undo what he 
himself had just done. 

“Like I think it's a good thing to 
have abig fight over taxes.” he told the 
columnists, suggesting that when the 
fight occurred they would find him in 
the lead. “That’s good. That’s a good 
diing to do to have this big argument ” 


But foe whole point, as made by his 
critics, is that the (Resident has not 
argued. On tax cuts, be folded early on. 
The Republicans wanted to cut taxes; 
so did he. He even wanted some though 
not all of foe same kinds of cuts, only 
his would be smaller. He blurred if he 
didn't quite neutralize the tax cut issue 
in the campaign by this tactic. He also 
gave up so much ground that there is 
little left to fight about 

The argument long ago ceased to be 
about principle; they are into die dif- 
ference-splitting phase. Nor is it even 
clear foal foe president cares foal much 
about the outcome. “Let's have the 
argument and resolve it in a way that 
allows us to go on,” he said tire other 
day. “1 just want to keep moving the 
country forward and keep the country 
pulled together ... not let foe country 
become more divided again.” 

The implication is that the people, 
no doubt including Mr. Gephardt, who 
would sidetrack foe deal, are pursuing 
parochial concerns at the expense of 
the greater good. But foe greater good 
as this president defines it turns out too 
often to be what is best — meaning, 
easiest politically — for him. 

The budget balancing plan is neither 
as toagh as it ought to be nor as fair. 
Too many members are voting “aye,” 
knowing better. Mr. Gephardt was 
right to pop foe balloon. 

— THE WASHINGTON POST. 



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India Has to Do Better Than Politics m as m Usual 


N EW YORK — Just when the gov- 
ernment of India had succeeded in 
producing a budget last month that 
achieved the improbable result of pleas- 


By Mira Kamdar 
and Sumit Ganguly 


political patties on the left, and an foe 
very weekend when Pakistan’s foreign 
secretary came to New Delhi for a rare 
meeting with his Indian counterpart, 
Indian politics brought die 10-month 
rule of H.D. Deve Gowda's United 
Front Coalition to an abrupt end. 

The Bombay Stock Exchange index 
fell sharply on foe news. But Inder 
Kumar Gujral and his team made it 
clear that continuity would prevail, foe 
budget would be passed, and bilateral 
talks with Pakistan would not be de- 
railed. The country brushed itself off 
and got cm with its business. 

Mr. Gujral is an excellent choice for 
prime minister. But can he last long 
enough to do what India, and the re- 
gion, so desperately need done? 

As foreign minister in the Gowda 
gov ernment, he was the driving force 
behind normalization of relations with 
Pakistan. He has pursued a Iove-foy- 
neigbbor policy, known as the “Gujral 
doctrine,” with Bangladesh, Sri Lanka 
and Nepal. He is committed to ad- 
dressing India's {musing social prob- 
lems, and to ensuring its successful 


integration into foe global economy. 

Last week in the Maldives, Mr. 
Gujral and his Pakistani counterpart, 
Mian Nawaz Sharif, had lunch and 
chatted. The conversation was ex- 
tremely promising. In an important 
concession, Mr. Gujral agreed to put 
foe highly charged issue of Kashmir on 
the agenda of future discussions. 

In the interim, the two sides agreed 
to set up a hot line linking the offices of 
the prime ministers, to release some 
200 detainees and to explore foe pos- 
sibility of Pakistan selling its surplus 
electricity to power-deficient India. 

The two men come from the same 
area of what is now Pakistani Punjab, 
Mr. GapraTs Hindu family having fled 
at foe tune of partition. They share a 
rapport unprecedented between leaders 
of foe two countries. But personal 
chemistry is not primarily what is driv- 


i is on the verge of fiscal and 
social collapse. Mr. Sharif has been 
given a very short leash by the In- 
ternational Monetary Fund, with spe- 
cific instructions on results that it will 
have to see if it is to continue to pro vide 


support. India faces crises in infrastruc- 
ture deficits, population growth, en- 
vironmental degradation. _ liquidity 
crunch and skeptical foreign investors. 

hi addition to the big economic gains 
that wouldTesult from a reduction in foe 
diversion of scarce resources to defense 
budgets, an opening of trade relations, 
now totaling a mere $500 million an- 
nually, could help achieve a regional 
free trade zone by the year 2000. 

The Cold War is over, and Mr. 
Gujral and Mr. Sharif know it. 

The international policy community 
in the West has generally expressed its 
approval of foe Pakistani leader, but 
some experts have expressed concern 
thar Mr. Gujral will not deal positively 
with the United States and that he will 
waffle on economic reforms. 

We disagree. That is outmoded sen- 
timent from the Cold War era, when 
Mr. Gujral served as India's ambas- 
sador in Moscow. 

He understands foe new global 
game: that geoeconomic realities are 
what must drive foreign and domestic 
policy. He knows that the only form of 
development assistance left after the 
Cold War is foreign investment. 

Like Mr. S harif , he must pursue eco- 
nomic re f orms and invest in foe in- 
frastructure necessary to attract des- 


perately needed foreign capital. Both 
leaders know that foere will be no Mex- 
ican -style bailout if they fefl. It seems 
that they have wisely concluded that, 
on the icy seas of foe post-Cold War 
global economy, it is better to swim 
together than to drown separately. 

This is good news for all of us. While 
the fate of foe region hinges on better 
relations between India and Pa kis ta n , 
over foe rest of our heads still hangs foe 
perhaps unlikely tat no less real nsk of . 
a nuclear confrontation. 

Mr. Gujral faces an enormous lead- 
ership challenge. He must deal with a , 
myriad of parties with divergent plat- 
forms and interests. The long-term sur- 
vival of this version of a government of 
India is by no means assured- But India , 
simply cannot afford to change gov- 
ernments every year. 

It has landed oo its feet this time, but 
it teeters on a political high wire ova a 
social and economic abyss. Next time - 
foe political wind shifts, it might not 
such an artful recovery. 


Mira Kamdar is acting director of 3 

_ If 7 tj n _ i: r_ yr. tl.*. l 1 



Ifoa Bud?®* 


u * j. 


■ — * :•** 


the World Policy Institute at- the 


HOG rrVJH* M itm w iw— — — — - - — — , H 

School for Social Research. Sumit Gan- * 
guly is a professor of political science J 


at Huftier College. They contributed 
this comment to ate 


* Herald Tribune. 


Clinton’s Troubles in Northern Iraq Aren’t About to Go Away' 


W ASHINGTON — The 
Clinton administration’s 
policies toward Iraq’s fractions 
Kurds and its brutal dictator, 
Saddam Hussein, boil down to 
an implausible wish; Please go 
away. That is high diplomacy in 
Clintonian Washington. 

Neither the Kurds nor Sad- 
dam will oblige. Nor do Tur- 
key’s military commanders pay 
foe slightest attention to con- 
demnations of their search-and- 
destroy invasions of northern 
Iraq. And Iran's ayatollahs 
laughingly defy U.S. com- 
mands not to support Kurdish 
rebels against the Turks and 
against Saddam. 

Instead, these forces combine 
to set the strategic Mesopotami- 
an crossroads aflame. The Clin- 
ton response? Have Madeleine 
Albright give a speech, appoint a 
secret committee headed by 
Vice President A1 Gore's elusive 
foreign policy adviser to endotse 


By Jim Hoagland 


foe status quo, and then pretend 
that tboe is no serious problem. 

But there is. and foe admin- 
istration has helped create it 
through blunders in Iraq and an 
attitude of neglect and drift to- 
ward Turkey. 

Two years ago, the United 
States was deeply involved in 
defending the liberated Kurdish 
enclave in northern Iraq as a 
springboard for overthrowing 
Saddam. But two incompetent 
CIA covert operations in Iraq 
canceled each other ont and left 
a strategic vacuum in the north, 
where Saddam has succeeded 
in pitting the Kurdish tribes 
against each other again. 

The American commitments 
evaporated when Massoud Bar- 
zani. leader of one Kurdish fac- 
tion, invited Saddam’s troops 


into Kurdistan last August to 
Jalal Tala- 


help him put down 


bani ’s forces and roll op the U.S . 
covert operation there. U.S. 
agents fled, leaving behind hun- 
dreds of Iraqis who had worked 
with them to be slaughtered by 
Saddam’s troops. 

A moment for U.S. leaders to 
get even, not angry, with Mr. 
Barzani? Not with this admin- 
istration. An interagency work- 
ing group cm northern Iraq was 
formed and concluded that foe 
United States had to deal with 
Mr. Barzani as the de facto 
power in die north. 

Months of efforts to woo him 
away from Saddam have pro- 
duced no results, while Saddam 
steps up defiance of U.S. re- 
strictions on his behavior. 

The few people who know of 
the working group, which gath- 
ers the CIA, the Pentagon. Stale 
and other agencies, have been 
intrigued that it is run by Leon 


Fuerth, Mr. Gore's foreign 
policy aide, who shuns substan- 
tive contact with the press — 
and with other administration 
policymakers, for dial matter. 

His presence, in his first big 
foreign policy assignment, is 
seen by some as a damage con- 
trol operation to benefit Mr. 
Gore. The debacle in Kurdistan 
rivals Somalia as the Clinton 
administration’s greatest foreign 
policy defeat and needs to be 
under wraps by die year 2000. 

A muscular speech by Sec- 
retary of State Albright early 
this spring pro mising a contin- 
ued firm stand on Iraq helped 
mute U.S. and foreign misgiv- 
ings about policy drift But it 
has not been followed up by any 
significant American action. 

This is a pattern with the 
Clinton administration in Cen- 
tral Asia. Just two years ago, the 
State Department was describ- 
ing Turkey as the world’s most 


The Pentagon Is Hooked on Fancy Weapons It Doesn’t Need 


P ARIS — On Monday the 
U.S. Defense' Department 
published its Quadrennial Re- 
view of military priorities and 
spending. The document 
quickly came under criticism 
forproposing cuts in manpower 
and infrastructure spending 

whflf- maintaining jqihgtanfially 

foe same mission definition, as 
well as existing high-technolo- 
gy weapons programs. 

The geopolitical assump- 
tions of foe review are essen- 
tially unchanged The United 
States is expected to be able to 
fight and wm two simultaneous 
regional wars (the Gulf and 
Korea are the threats usually 
cited), maintain existing levels 
of troop deployment in Europe 
and Asia, and contribute to 
peacekeeping missions. All this 
is questionable, but it is the con- 
ventional wisdom. 

The most interesting crit- 


By William Pfaff 


icisra of American defense 
policy is one that is most pro- 
vocatively made by a European 
military commentator, Philippe 
Grasset, publisher of a Brussels 
aerospace industry newsletter. 
He says that the United States is 
“impoverishing” its power by 
its commitment to technically 
advanced weaponry. 

He says the United States 
prepares for high-technology 
conventional wars unlikely to 
happen, at foe cost of low-tech 
capabilities for the kind of op- 
erations more likely to be 
needed. It has an immensely 
sophisticated force “waiting 
for Godot" — or for foe bar- 
barians who never come. 

The Pentagon insists on pur- 
chasing weapons systems 
which have little utility in real 
crises because they are irrelev- 


ant to the threat, technologically 
wholly disproportionate to the 
threat, or so costly that com- 
manders are loath to use them. 

The B-2 “Stealth” bomber is 
foe obvious and controversial 
case in point. A program an- 
nounced in 1980, the B-2 flew 
first in 1989, went into non- 
operationai service only in 1993 
(because of problems), and was 
announced to be operational, al- 
though with some continuing 
difficulties, only last month. 

Its cost has been $22 to $2.5 
billion per unit — one-third the 
price of an aircraft carrier. It is 
not an airplane that a command- 
er wants to see crash in the 
desert. During the Gulf War, foe 
air force accompanied Stealth 
missions by its F-117A fighter. 

The Stealth technology de- 
veloped in the 1970s and ap- 


Some Scandal Housekeeping 


S T. LOUIS, Missouri — 
Before rising to the defense 
of Hillary Clinton, let me do 
some scandal housekeeping. 

On the investigation into 
espionage and bribery called 
the Asian Connection: 

A Justice Department source 
mf firms me that some “career 
professionals” in the criminal 
division have now joined FBI 
Director Louis Freen in urging 
Attorney General Janet Reno to 
seek the appointment of inde- 
pendent counsel. 

She still refuses to act That 
poses a clear challenge to the 
Government Reform and 
Oversight Committee of the 
House to call key members of 
the criminal division. 

T be purpose should not be 
to solicit evidence that foe 
committee should develop on 
its own, but to determine 


By William Saflre 


refusal is still based, as she 
claims, on foe professional 
opinion of career officials. 

On another front in foe 
same scandal, foe House Rules 
Committee chairman, Gerald 
Solomon, has written BUI 
Clinton to ask federal help in 
finding and getting testimony 
from foe U.S- citizen Yah Lin 
“Charlie” Trie, foe Little 
Rock Clinton benefactor who 
is presumed to be in Beijing. 
That raises a few questions. 

Has the suspected Beijing- 
Washington go-between been 
deposed by the FBI? Is Mr. 
Trie’s U5. passport operat- 
ive, or is be a fugitive? Will 
foe Chinese government co- 
operate in returning him to 


face, if not a grand jury, at 
least foe U.S. Congress? 

Now to the Whitewater ab- 
uses of power 

While professing “full co- 
operation’ ’ with investigators, 
foe Clintons have been fight- 
ing a yearlong secret battle to 
keep from view notes taken by 
government lawyers. A fed- 
eral appeals court found that 
lawyers paid by the public do 
not share foe same confiden- 
tial privilege as personal law- 
yers, and ordered foe notes be 
given to the independent 
counsel. The Clintons, having 
already turned over such notes 
affecting staff aides, resist — 
appealing to foe Supreme 
Court to protect foe first lady. 

Are they trying to hide a 
smoking gun? No; my guess is 
that those notes contain some 
embarrassments, as well as 
clues to the administration- 
wide cover-up that will help 
prosecutors proceed under 
RICO, foe Racketeer Influ- 
enced and Corrupt Organiza- 
tions Act. But Jane Sherburne 
is too experienced an attorney 
to jot down statements suggest- 
ing criminality, and she knows 
that all federal officials, even 
lawyers, must report to Justice 


any crime they leam about. 
711611 


why claim lawyer-cli- 
ent privilege? Answer It 
bought 18 months' delay, and 
delay is their best defease. 

Mrs. Clinton has no unique 
“privilege” to protect her and 
her alone from criminal in- 


vestigation, but she does have 
the same rights to defense en- 
joyed by every U.S. citizen. 

Recently a prosecutor was 
surreptitiously taped in a 
secret court session telling 
judges that Mrs. Clinton was 
among those who could be 
indicted. ABCs breathless 
broadcast of the tape was an 
editorial mistake. 

As the momentum of pros- 
ecution picks up in coming 
months, and as executive 
stonewalling becomes more 
infuriating, reporters will be 
tempted to penetrate judicial 
walls and intrude on grand jury 
secrecy. We should resist that. 

Pundits can predict Hillary’s 
indictment, and animadvert on 
her tendency to lie, as I have, 
and her husband can wish 
aloud, as foe president has, that 
he could respond by punching 
me in the nose — that s all free 
speech. Certain judicial pro- 
ceedings. however, are held in 
secret for the purpose of pro- 
tecting the constitutional rights 
of potential defendants, or of 
guarding die privacy of wit- 
nesses and jurors. 

Eavesdropping on them un- 
dermines a genuine privilege, 
and broadcasting foe tape ab- 
uses free speech. 

What about foe tip from 
within Justice about die 
changed opinion of career pro- 
fessionals that leads today's 
essay? Thai is legit because it 
advances the story by lighting 
a fire under die attorney gen- 
eral without jeopardizing any- 
body’s rights at trial. 

The New York Times. 


plied to the B-2. the F-117A and 
today’s F-22 fighter program 
has since 1975 added some 
$100 billion to foe cost of these 
systems, and even today, when 
it is a mature technology, it con- 
tinues to cost the Pentagon be- 
tween $1 billion and $5 billion 
annually. Yet its operational 
value in today's conditions is 
open to serious question. 

The air force's commitment 
to stretching the technological 
curve is so firm that it is un- 
willing to propose new pro- 
grams without Stealth techno- 
logy. Three new Stealth aircraft 
are in development; the F-22, 
the navy’s F/A-18 and the so- 
called Joint Strike Fighter. 

The country has three ad- 
vanced combat aircraft pro- 
grams in progress, in addition to 
the B-2, all with Stealth char- 
acteristics designed to allow 
them to penetrate enemy air de- 
fenses of a kind acoially pos- 
sessed only by America. 

The so-called “star wars" 
missile defense project, now in 
its 14th year, ^ets a modest 
funding increase in foe Defense 
Department Review, yet ac- 
cording to the undersecretary in 
charge of weapons procure- 
ment, Paul Kaminski, its pro- 
posed deployment by 2003 
would have “a very high risk” 
of not working. 

The United States is devel- 
oping a defensive system 
which, according to Mr. Kam- 
inski, would have “some ca- 
pability” against “accidental 
or unauthorized” missiles, but 
would be useless against a se- 
rious and deliberate missile at- 
tack against foe United Stares. 






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important “front-line state,” 
the focal point of foe globe’* 
most urgent crises and threats. 
But coherent, convincing action 
did not follow foe grandios? 
words, and today Turkey is in 
the grips of a major stnijgg^ 
between the secular military 
and Islamic fundamentalists. 

The one clear trend in Turkey 
is movement away from Wash- 
ington. Denied military equip- 
ment that it feels it needs, Tur- 
key's military command is 
increasingly turning to Israel 
for direct military help. This 
adds exponentially to tensions 
between the secular, Western^ 
oriented military and the Islam; 
ic fundamentalist Prime Min- 
ister Necmettin Erbakan. 

Washington’s pleas to the 
Turkish military to stay out of 
politics at home, and to stay out 
of northern Iraq, now fall on 
totally deaf ears. 

The Washington Past. 


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American military spending 
is caught up 'in a rivalry not 
between the United States and 
some other nation but between 
the Pentagon’s own measure, 
counter-measure and counter- 
counter-measure theorists. 

The aeronautics and defens? 
industries are designing defense 
systems to overcome their own 
offensive systems, and vice 
versa. One thinks of that now 
banned children's tale whose 
climax is that the tiger rashes 
round and round the palm tree 
with such energy that he ends up 
a pool of butter on the jungle 
floor. The little human hero 
spoons him up to butter his tea 
crumpets. 

All this might be a relativelj^V 
hannless way to spend public * " 
money, subsidizing high-tech- 
nology research and industry in 
each of the co uncry’s congres- 
sional districts, but it is being 
pursued at the cost of military 
capabilities adapted to t he un- 
sophisticated, low-technology, 
high-manpower tasks foe that 
American military actually 
tends to be asked to perform. 

Between the high-technolo- 
gy project and the slog on foie 
ground, reality takes its tolL As 
Mr. Grasset notes, a year and "a 
half ago the U.S. Army's 1st 
Armored Division spent t hr ee 
weeks Hying to complete a 
flooded river crossing in Bos- 
nia. Armored divisions used to 
be good at winter river cross- 
ings, even opposed ones, with 
an enemy shooting at them. That 
is what armored divisions were 
for. Now we have the B-2. 

International Herald Tribune. 

& Los Angeles Times Syndicate. 1 


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IN OUR PAGES: 100, 75 AND 50 YEARS AGO , 


1897: Degrees Denied 


LONDON — Cambridge Uni- 
versity, by a vote of 1,713 to 
662, refused to grant degrees to 
women. An unsuccessful res- 
olution stated “That it is de- 
sirable that the title of degree of 

bachelors of arts be conferred by 
diploma upon women satisfying 
the examiners in the final tripos 
examination and who have kept 
nine terms at least.” The un- 
dergraduates, who are practic- 
ally unanimous in opposing the 
idea, were in a state of wild 
excitement. 


tom in her side, and she sunk 

less than twenty min utes, fifteen 
passengers and more than eighty 
of the crew were lost. 


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1947: Jinnah’s Plan 


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1922: 100 Drowned 


PARIS — One hundred lives 
were lost when the British P. and 
O. liner Egypt was rammed and 
sunk in the fog by the French 
freighter Seine, about eighteen 
miles off the French coast, nearly 
due west of Brest The Egypt, a 
steamer of 8,000 tons, was shuck 
amidships, a great hole being 



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confer 


NEW DELHI — Moh amm ed 
Ali Jinnah president of foe 
Moslem League, whose demand 
for an independent Moslem 
state of .Pakistan might result in 
the partition of India into Hindu 
and Moslem states, said he en- 
visaged “friendly and reciproc- 
al” relations with Hindustan. 

He _ demanded the division of 
Indian armed forces, but fore- 
cast a mutual assistance pact 
with Hindustan against outside 
aggression. He asked for a cor- 
ridor to connect foe eastern and.. ^ - 
western Pakistan stares, and said£-^ » ‘TV* 
that Pakistan had to be suffi- 
ciently strong as a balance vis-a- 

vis Hindustan. “I am deadly 0! “The am 

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INTERNATIONAL HERALD TRIBUNE, THURSDAY, MAX 22, 1997 

OPINION/LETTERS 


PAGE 9 


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^ Cohabitation Dance 
To a Budget-Plan Beat 

By E.J. Dionne Jr. 

WfiKEUS; *£■ ■■■ bn't want to ttdk 
rnd miidjy sg xv lovely about a veto,' 'he said, praising 
&SoS y S to r ^, the l>* , >oodfaiU,^SSS S 
ientis of one nartv^rt^ " m *** ^o^ations. Then he 

^ Reissue again. 

tee opposit:««^^. U -.. b y - *“* *«e will be 

‘cobabitaK 


iition. They call it 
ibon.” The presi- 

B oeni must “|j ve a 

me minister and a leEis- 
ve body that would prefer 
9 not be there. 

I Cohabitation implies nei- 
love nor marriage 
ply an arrangement. The 
□gement can be amicable 
|°^ sttKmy, depending on 
Jwhat each party needs at 
pny given time. 

[ T^ peculiar noises com- 
ing out of Washington these 
pays are the sounds of 
President Bill Clinton, the 
penate Republican leader 
tttent Lott, and the House 
weaker. Newt Gingrich, 
grmng new terms for their 
cohabitation agreement 
Since Franklin D. Roos- 
evelt’s election in 1932, only 
once before, from 1946 to 
194S, has a Republican Con- 
gress had to live with a Demo- 
cratic president 
Hany TVuman quickly 
chased the Republican major- 
ity out of town. 

In the current arrangement 
the first two years were 
difficult The Republicans 
tried to pretend that Mr. Clin- 
ton wasn’t there. 

" A few vetoes later, the Re- 
publicans saw that the^pres- 

crockery. They now want a 
partial truce. 

'■ The French would tell yon 
that cohabitation is never 
stable. Each side reminds the 
'pther of the relationship’s 
limits. In an interview at the 
^White House on Thursday, 
.the president did just that 
W Of the Republicans, Mr. 
Clinton said: “They are in 
die majority. They are en- 
titled to some deference. But 
Jbey have to know there’s 
ii point at which we have 
to get off.” 

r Mr. Clinton sat down for an 
interview at the request of a 
group of journalists. All 
smiles and good cheer, he 
spoke as his negotiators were 
pinning down Mr. Lott and 
Mr, Gmgrich on the final de- 
tails of the budget agreement. 
He. thought, he was getting 
mdstof’whai'he Wanted/, 

* But the real dynamic of 
the interview was Mr. Clin- 
ton’s shifting back and forth 
between pledges to cooperate 
with the Republicans and 
warnings that be would 
bappily work with congres- 
sional Democrats to nudge 
die accord his way, especially 
on taxes. . . 

Mr. Clinton sees the budget 


one 

heck of a good debate on diis 
tax bill,” Mr. Clinton said. 
But he added that if **i rhmlt 
it’s too bad for the American 
people and it’s not fair, then 
I’ll do my best to stop it from 
becoming law.” 

This is a president who 
once said that one of his he- 
roes is Wile E. Coyote. 
Coyote is the character in the 
"Roadrunner” cartoon who 
always gets into trouble but 
lives to fight another day. 

Mr. Clinton said the deal 
binds him to sign a bill cutting 
capita] gains and estate taxes, 
“even if it is not the bill I 
would write." 

But the Republicans re- 
fused to pul the specifics of 
the tax bill into the agree- 
ment, so Mr. Clinton said he 
feels he has room to work 
with Democrats to amend any 
Republican plan. 

“They said, ‘We don’t 
write this bill in the agree- 
ment. and neither can we 
expect you to be bound by 
anything except the categor- 
ies — and the principles,’ ” 
Mr. Clinton said 
The Republicans may 
come to regret not pinning the 
president down on taxes. 
Congressional Democrats see 
the Republicans as vulnerable 
on the inheritance and capital 
gains tax cuts, which mostly 
benefit the better-off. 

The House Democratic 
leader, Richard Gephardt, has 
asked Democrats on the 
Ways and Means Committee 
to write their own tax plan. It 
will emphasize middle-class 
tax cuts and, at most, modest 
changes in capital gains and 
inheritanc e levies. 

Republicans know they 
have a conflict on their hands 
between pro-family activists, 
who want a tax audit for par- 
ents with children, and their 
business constituencies, who 
think die “kiddie credit’' is a 
waste of money and care most 
about capital gains. 

The Republicans cannot 
accommodate everybody, es- 
pecially since they have given 
Mr. Clinton all the education 
tax credits he wants. , „ 
"There’s either a geomet- 
ric or a mathematical problem 
in that there are $200 billion 
worth of tax cuts that have 
to fit into a bag about half 
that size," said Representa- 
tive Mark Sanford, Republi- 
can of South Carolina, in 
an interview. 

From his White House 
perch. President Clinton 
seems happy to let the tax 

knffTa mil *‘T tftflffilr St’e nnrvl 


jjvju • uiiuiim wuuftv/L w 

not only as an agreement but battle roll. I think it’s good 
also as a “framework” in to have a big fight over 

taxes," be said with a smile. 

Cohabitation means get- 
ting along only when you 
have to, and shifting your al- 
liances whenever necessary. 


"which “we can debate the dif- 
ferences. ’’This is the dance of 
cohabitation. 

‘- 1 Within two sentences, he 
Raised the possibility of using 
^ris veto, then quickly pulled 


Washington Past Writers Croup ■ 


; LETTERS TO THE EDITOR 



19*7: 




tk’ i 



I -*5* 

j -‘ r 


Tobacco Verdict 

' Regarding “ The Tobacco 
•Verdict: Jury Saw Smoking as 
*a Personal Choice’’ (May 7): 
V- As a lifelong nonsmoker 
who in no way appreciates 
smoke-filled rooms, I none- 
theless agree wholeheartedly 
•with the Florida decision in 
favor of RJ. Reynolds To- 
bacco Co. I have great sym- 
pathy for die family of Jean 
^Connor, who died of lung can- 
'cer. But I have sympathy 
'neither for die lawsuit claim- 
ing datnafflas DOT ftff the fact 
that the verdict, for Mrs. Con- 
faM-’s family, was like ‘ ‘watth- 
fag her die all over again." 

If the family is not seeking 
personal gain, but wishes to 
gave others from the hazards 
of smoking, instead of tying 

jp» the courts with litigation, it 

should be spending its time 
£pDd effort to convince others 
^to stop smoking. 

HOWARD M- UBBMAN. 
r Brussels. 

v 

Problem ofParenting 

Regarding ‘“Progressive 

parenting' and the Rise a$ the 
*8 rat” (Opinion. May Jo) by 

^b^StaweR details the 
bear demise of his laptop 
computer at the hands of a 
-rambunctious 6-year-old^ in 
an airport waiting area. Mr. 
lvlax ^jl told the child to get 
dost, reprimanded the mat- 
Ttentive parent, and had 
-enough raw material to put 
fae m 5 in the coffin of what 

jjX method of chfld-reanng- 

^Mr. Max wtsll is not alone m 

'what seems to be an increasing 
tendency for people to 
toe public domain as then 

come aggressively tscnmoal 


in public, demamfing that we 
be afforded the same uncon- 
ditional privileges in public as 
those we enjoy at home. 

Children, by nature, de- 
mand our attention. Yes, they 
need to learn restraint: no. 
they can't be allowed to hurt 
others or destroy their prop- 
erty. But as adults, we have an 


VUUJVMV** »w 

them, not just mete out pun- 
ishment and discipline. If the 
fabric of society is begfrming 
to unravel, it’s not just be- 
cause of permissive parents. 
Intolerance and social isola- 
tion axe the true th r eat s. 

HAL LAND Y- 

ChSoe-Bouig, Switzeriand. 

A Forgotten Author 

Regarding “No Computer 
Can Write a Column Like 
This" (Opinion, May 14) by 
Richard Cohen : 

Mr. Cohen claims that no 
great literary work has been 
written by a 12-year-old. He 
suggests this may be because 
achild cannot comprehend 
the approach of his own death 
and believes himself to be im- 
mortaL I find it surprising that 

in tins context Mr. Cohen 
seems to have forgotten "The 
Diary of Anne Frank.” 

MARILYN SCHAHRO- 
Bielefeld, Germany. 

Mistaken. Attribution 

Regarding “Homer: A 
Translator’s Odyssey" (Leis- 
ure, April 22) by Mel Gus- 
sow: 

Robert Fagles’s attribution 
of "The Authoress of the 
Odyssey" w Robert Graves 
was mistaken. It was Samuel 
Butler (also the author or 
"Erewbon,” among others) 
who wrote that book. 

ROBERT J. WOLFSON. 

London. 


Air Force Pilot Is Winning Her Public Relations Battle 


By Maureen Dowd 


USMWWE 


M INOT, North Dakota — The military 
wanted women who were ready for 
combat. Weil, they got one. First Lieutenant 
Kelly Flinn will no longer fly B-52 bombers 
for the U.S. Air Force, but her training in 
hitting the target has not been wasted. 

She has proved herself a bold, if weepy, 
warrior, sending her fellow female pioneer, 
the air force secretary, Sheila Widnali, imo 
retreat. She has momentarily saved herself 

MEAIWHUJE 

from the auto-da-fd that the air force had 
prepared for her. 

Lieutenant Flinn has been wa gin g a clever 
and passionate public relations battle that has 
sparked an intense national debate on wheth- 
er the military should be prying into affairs of 
the bean so avidly, and on whether the 
generation-old experiment in integrating the 
sexes has faded. 

• Unlike the 67 other men and women who 
were court-martialed for adultery last year by 
the U.S. Air Force — in its stepped-up cru- 
sade to have a family-friendly environment 
— Lieutenant Flinn did not go quietly. 

With the support of her aptly named law- 
yer, Frank Spinner, she told television and 
newspaper reporters her sad story of being 
betrayed twice, first by a duplicitous ana 
abusive married lover and then by an air 
force that appeared overly eager to trap her. 

Helping her seem more sympathetic was 
faue rat himself, Marc Zigo, a former soccer 
coach, who first gave lurid details to in- 
vestigators in the air force and then showed 
up in Minot on Tuesday to volunteer to 
testify against his former girlfriend. 

When the court-martial did not start 


quiddy enough for him. Mr. Zigo called 
CNN’s “Talk-Back Live" to share his pain. 

"My intention was to tell the truth, which 
she did not,** he said. 

His former wife, an airman named Gay la. 
has written Secretary Widnali a letter char- 
acterizing Lientenant Flinn as a husband- 
stealing vixen. 

Lieutenant Flinn was not like all the sol- 
diers and sailors who go to anonymous 
brothels. She thought she had found true 
love, the path to a real life, a marriage — 
something better than the desolate, cold duty 
with desolate, cold nuclear weapons. 

"She bad never fallen in love with any- 
body," her mother, Mary, said on Tuesday. 
"She had dated a lex of people, bin Marc was 
the first person who came into her life who 
had looked on her as a woman. 

"He told her she should wear blue, be 
said she was always wearing black. He 
told her she should wear her hair differently. 
He was charming. She believed everything 
he told her." 

Of course, Lieutenant Flinn used bad 
judgment when she got involved with a 
married man. She used extremely bad judg- 
ment when she lied to her superiors about the 
relationship. 

But it is hard to believe that there wasn’t 
something tills side of Hester Prynne, 
the adulterous heroine of "The Scarlet 
Letter," to resolve a case with someone 
who had been showcased as the first female 
B-52 bomber pilot 

While legal experts did not even expect 
her to get a general discharge, she held out for 
an honorable discharge, which would allow 
her to fly in the reserves or National Guard. If 
she could not have that, she said, she would 


Hrc. WHO LET THAT ADULTERESS IN HERE? 

feel a threat to m 
MORAL RECmUDEJ 

5HE HAD AN AFFAR! 

H^THE 5 HAME. 1 . 

HOW CAN 5HE EVER 
DROP BOMBS 
ON PEOPLE? 




Yrr. Ar^nlw* Times Kyodkai* 


face head-on the air force threat to vilify her 
reputation, make her a felon and put her in 
prison for up to nine and a half years. 

The public found the military’s application 
of rules about sexual conduct erratic. And the 
military seemed hypocritical for acting so 
priggish after all those years of glorying in an 
image of swaggering fiyboys. 

Air force officials finally realized that 
they had been ou maneuvered when the Sen- 
ate Republican leader, Trent Lott, blasted 
them on Tuesday. “My wife has a good 
question," he said. “Where’s the guy who's 
involved in tins deal?" 

Mary Flinn, who race watched in awe as 
her daughter landed a jet trainer, said Lieu- 


tenant Flinn was still respectful of air force 
rules. For instance, she said she told bear 
daughter she did not understand why the 
news cameramen were limited to certain 
areas on the base. 

"I said they weren’t bothering us, and 
Kelly said: ‘Mom, you don’t undemand- 
There are rules you follow on the base/ ’’ 
Mrs. Flinn said. "Here she is at her own 
court-martial, and she is so indoctrinated 
with this love of the air force. She still talks 
about the possibility of active duty. 

"She would give her life to tire country. 
She still loves the air force. She just feels it 
was individuals who broke her heart." 

The New York Times. 


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PAGE 10 


INTERNATIONAL HERALD TRIBUNE, THURSDAY MAT 22, 1997 


HEALTH/SCIENCE 


£ 



Paleontologist Fernando Novas explains why he believes that his fossil bolsters his bird-dinosaur link theory. 


Backing for Dinosaur-Bird Link 


By John Schwartz 

Washington Past Service 


W ASHINGTON — Fossil 
remains discovered in Ar- 
gentina appear to be from a 
long-sought “missing 
link'’ supporting the theory that binds 
descended from dinosaurs, two scient- 
ists say. More than 20 bone fragments 
extracted from a green sandstone hill in 
the Patagonia region come frotn a pre- 
viously unknown ancient critter whose 
pelvis resembles both dinosaurs and 
birds, and whose shoulder is uncannily 
birdlike. The flightless creature stood 
nearly four feet tall, was about 7 1/2 feet 
long and ran upright on two legs. 

Paleontologist Fernando E. Novas of 
the Museum of Natural History in 
Buenos Aires and his colleague Dr. 
Pablo F. Puerta named die theropod 
Unenlagia comahuensis , meaning 
“half-bird from northwest Patagonia” 
in Latin and the language of the local 
Mapuche Indians. 

Dr. Novas said that he first mistook 
the remains for a turtle. But once he got 
the bones back to his desk in Buenos 
Aires, he “became astonished, looking 
at die structure.” 

Dr. Novas describes the discovery in 
the journal Nature. In an article ac- 
companying the Novas piece. Dr. 
Lawrence M. Winner of Ohio Uni- 
versity called Unenlagia “a true mo- 
saic, begging the question of where to 
draw the line between what is, or is not 
a ‘bird.' ” 

Most paleontologists believe that di- 
nosaurs evolved into birds, based on the 
many similarities between the bone 
structure of creatures such as the fierce 


Deinonychus and ancient birds such as 
Archaeopteryx. But finding fossils that 
stand at die midpoint between the two 


The new find “fills in a major piece 
of that gap,” said Dr. Mark Norell, 
chairman of the department of verteb- 


rate paleontology at the American Mu- 
seum of Natural History in New York. It 


seum of Natural History in New York. It 
is one of a number of newly discovered 
fossils being prepared around the world 
that will further prove the dinosaur-bud 
link, he said. 

It is the Unenlagia ’s oddly configured 
shoulder that fascinates paleontologists. 
The dinosaur's short arms hung down 
from its shoulders, and the orientation of 
the shoulder meant that the animal's 
limbs could move forward and inward 
to grasp, in a fairly limited range. The 
creature's shoulder was tilted outward, 
however, giving a completely different 
range of movement that included up- 
and-downstroke flapping. 


T 


HAT range of motion might 


have helped the speedy dino- 
saur keep from falling as it 


I saur keep from falling as it 
zipped about. Dr. Novas sug- 
gested, in the same way that humans 
wave their aims to keep balance while 
surfing or skating. The forearm was so 
short and the creature so heavy that 
flapping the proto-wing certainly would 
not have been enough to allow a 
creature of that size to fly, but it could 
have increased tbe height and hang time 
of its leaps. • 

Dr. Novas was careful to point out 
that the new find could not itself be a 
direct ancestor of modem birds, because 
the Unenlagia lived just 90 million years 
ago — 55 million years younger than 


•I* 


JACKIE BY JOSIE 

By Caroline Presum. 314 pages . $22. 
Scribner. 

Reviewed by Carolyn See 


T HIS is a first book very much in tbe 
tradition of Alison Lurie's early 


■ tradition of Alison Lurie's early 
novels of academic manners. “Jackie 
by Josie” could be the literary grand- 
child of “Love and Friendship.” and 
it's fascinating to see how. after all these 
years, the genre hasn't changed. 

Caroline Preston gives us, as a 
heroine. Josie Trask, an English gradu- 
ate student wbo can't seem to finish her 
doctoral dissertation cm an obscure early 
American poetess; it's hard to work on 
your dissertation when you're married 
and you've got a little kid. 

Josie *s husband, Peter, is a few years 
ahead of her in this academic maze, and 
he's doing famously, swarming about 
on campus with adoring flocks of young 
undergraduates, drunk on learning and 
enlightened self-interest. (He did find 
time, though, when she was in the hos- 
pital having the baby, to paint a closet in 
their apartment that she could use as an 
office.) 

Josie is filled with an afl-encom- 
passing queasy anguish; she loves her 
child, but Peter seems to be receding 
from her. He's ail happiness and am- 
bition; she's floating somewhere in an 
untidy world of baby laundry, empty 
afternoons, old peanut butter sandwiches 
and untouched 3 -by -5 cards scribbled 
with useless academic information. 

Her anxieties fo$us on her “friend” 
Monica, an academic rival, long of limb. 


tanned and very chic, unmarried and un- 
encumbered whom Josie imagines to 
have set her cap for Peter. At the be- 
ginning of this fateful summer, events 
arrange themselves so that Peter and 
Monica are slated to drive to the West 
Coast to start teaching, while Jose stays 
in the East to work on a research project 
to bring in some money — since she 'snot 
working on her dissertation anyway. 
(You almost have to have been an Eng- 
lish graduate stwient to perceive tbe guilt, 
angst and general sense of imprisonment 
lurking in that painted closet, the un- 
touched file cards, die dreadful shame 
involved in not working on tbe “diss.' ’) 

Because the demands of die novel 
require it, Josie must spend tbe summer 
with her mother — of whom she is 
deeply ashamed — while she works on 
the project- She’s supposed to be dig- 
ging up facts on Jackie Kennedy for a 
quick popular biography, and her moth- 
er remembers that she and Jackie 
happened to have come to Washington 
at the same time. Strange, her mother 
remarks, how they turned out so dif- 
ferently. Josie is repelled. How can her 
mother even put herself in tbe same 
sentence with Jackie? 

Josie's predominant emotion through 
most of this book is, in feet shame; 
she’s ‘ ‘hot with embarrassment for both 
of her parents” and for almost 
everything and everyone else — except 
Monica and Peter, whom she imagines 
co be blissfully entwined on a cloud of 
love. She dies of embarrassment over 
her old family home; she writhes in 
chagrin over her mother, wbo was 
dumped years ago by her dad. She’s 


appalled that her mother has taken in an 
ex-convict as a lodger. She also suspects 
her mom of secret drunkenness, and 
she’s hounded by her bossy older sister 
to do something about this, quick. 

We see Josie as she must have been, 
in her childhood home, pale and book- 
ish, memorizing poems, longing for a 
“better’ ’ world, dying of shame for her 
mother, who was forced to buy clothes 
for her daughters at rummage sales. 

Josie is soon convinced that her 
mother is indeed a raving alcoholic, 
being duped by feat merciless and wily 
convict In her eyes, Josie's mother is a 
worm, wife an “L” for “Loser” burned 
into her forehead. 


B UT guess what? Even Jackie 
Kennedy, tbe brilliant and beautiful 
Jackie O, grew up the ashamed and 
bewildered child of divorce, and her 
father got so drunk the day of her wed- 
ding feat she wouldn’t let him give her 
away. And you couldn't say that Jack 
was exactly the King of Fidelity. What, 
the author suggests, if all women tend to 
be dealt more or less the same hand in fee 
poker game of life? What if most of us 
must cope with iffy parents and flighty 
men, and need to keep our kids safe any 
way we can? Certainly other women 
have pondered these questions. Caroline 
Preston, following in the tradition that 
started with Jane Austen and continued 
in America through Lurie and Diane 
Johnson, does a commendable job wife 
the material. 


Carolyn See reviews book regularly 
for The Washington Post. 


BRIDGE 


By Alan Truscott 


I N a thrilling finale, Harry 
Tudor of Miami and Mi- 
chael Seamon of Miami 
Beach snatched victory on fee 
last deal of the Cavendish In- 
vitational Pairs in Las Vegas, 
Nevada, recently. They were 


apparently out of contention 
before the final session, but 
gained 1 .000 imps to edge out 
two favored Italian partner- 
ships. 

The final standings in fee 
field of 60 pairs were: Tudor 
and Seamon. 2855.64 imps; 
Massimo Lanzarotti and An- 
drea Buratti of Italy, 2743. 39; 
Alfredo Versace and Lorenzo 
Latvia of Italy, 2687.75; Bjorn 
Fallen! us and Mike Moss of 
Manhattan, 2372.68; Michael 
Courtney and Peter Gill of 


Australia, 2 261.46; Hector 
Camberos and Pablo Lom- 
bard! of Argentina, 2170.21; 
Eric Greco of Annandale, Vir- 
ginia, and Geoff Hampson of 
Fenton, Michigan. 1985.71; 
Bart Brantley of Chicago and 
Sidney Lazard of New Or- 
leans, 1979. 

The diagramed deal from 
the final session played a ma- 
jor role in Tudor and Sea- 
men’s victory. 

Seamon as West overcalled 
one no-trump wife two spades, 
showing spades and one of the 
minor suits. Over a negative 
double, Tudor cooperated 
wife a pre-emptive raise to 
three spades and North-Sooth 
were awkwardly placed. 

They finally found their 4- 
4 heart fit, landing in game, 
but that was too high. Seamon 
made an imaginative double. 


confident feat his partner held 
four hearts, and led tbe spade 
king. 

South was BobHamman of 
Dallas, the world’s top- 
ranked player, but his skill 
could not help him here. Tu- 
dor signaled possession of the 
spade queen, and Seamon led 
a low spade to allow his part- 
ner to win and shift to a dub. 
The finesse of fee jack lost to 
the king, and fee spade ace 
wasted. 

South ruffed, led a heart to 
fee ace and tried a diamond 
finesse. This also lost, and 
South eventually lost two 
Hump tricks. That was a pen- 
alty of 800, giving Tudor and 
Seamon 308 imps in a scoring 
system that gives an imp-com- 
parison with 29 other tables. 

If Hamman had chosen to 
pass the double of three 


spades, he would have col- 
lected 500 and Tudor and 
Seamon would have finished 
fifth instead of first. 


NORTH 

* Jto« 

V A J 3 2 
4 Q 10 S3 

♦ 7 6 


WEST 
♦ AK42 
Via 
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EAST 
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SOUTH 

*sa 

OKB74 
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Both skies were vulaerabfc. Tbe btd- 

dtng; 

North 

East 

South 


Pass 

Pass 

I N.T. 

24 

DU. 

14 

Pass 

Pass 

DbL 

Pass 

4V 

DbL 

Pass 

Pass 

Pass 



West led the spade king. 


Closing Cuts With Glue 

New Materials May Partly Replace Stitches 


By Susan Gilbert 

New York Times Service 


EW YORK — Through the 
ases. a wide range of ma- 


Archaeopteryx, the earliest known bird, 
whose fossil remains were discovered in 
Germany in fee 1860s. Instead, Dr. 
Novas said, the new discovery was “a 
late survivor of a critical evolutionary 
stage” from which Archaeopteryx and 
other birds sprang. The debate over 
whether binds descended from dino- 
saurs is unusually polarized. The new 
discovery did not appear to do much to 
impress scientists skeptical of tbe di- 
nosaur-bird theory. 

“They seem to dream 'em up all fee 
time,” said Dr. Alan Feduccia, chair- 
man of the biology department at the 
University of North Carolina. Dr. Fe- 
duccia. who called fee new report 4 ‘utter 
nonsense, ’ ’ said fee fact feat these bird- 
like dinosaurs appeared tens of millions 
of years after Archaeopteryx means feat 
the idea of line of descent doesn't make 


ages, a wide range of ma- 
terials have been used to 
close deep cuts and other 
wounds, including cobwebs, the jaws of 
leaf-cutting insects and, in modem 
medicine, stitches and staples. 

But cow another material is showing 
promise: glue. 

Rather than put patients through the 
ordeal of sewing their wounds and in 
many cases removing fee stitches a 
week or so later, doctors are finding that 
they can simply glue fee edges together 
and send their patients home. 

The adhesives are chemical relatives 
of the glues found in factories or around 
the house, but sterilized and modified 
for medical purposes. 

Several recent studies show that cer- 
tain wounds closed wife glue heal just as 
well as those closed wife stitches, and 
that the cosmetic results up to a year 
later are comparable. 

In fee newest study, doctors predicted 
of one kind of medical glue that it could 
replace stitches for about a third of die 
11 milli on wounds treated yearly in 
American hospital emergency rooms. 

The study is being pub ii she d in Wed- 
nesday’s issue of The Journal of tbe 
American Medical Association. 

Dr. Alexander Trott, a professor of 
emergency medicine at the University 
of Cincinnati College of Medicine, 
whose commentary on the study also 
appears in the journal, said fee study, 
“heralds a new technique and product 
that can come close to revolutionizing 
tbe way we care for lacerations.” 

Medical glues are not new. They have 


all but small- shallow wounds. In ad- 
dition, some caused loxic reactions on 
the skin. Perhaps fee biggest strike 
a gainst them was a finding published a 
decade ago feat one adhesive induced 
cancer in laboratory rats. 

More recent research has not home 
out the cancer link, and newer medical 
glues are stronger and, when used prop- 
erly, not toxic, said Dr. James Quinn, an 
assistant professor at the University of 
Michigan Medical School in Ann Arbor 
and lead author of the new study. 

His success wife medical glues in 
Ca naria as an emergency room doctor 
touched off his interest in research. 

His new study included 130 adults 
wife lacerations on tbe face, torso, aims 
and legs feat were treated in fee emer- 
gency room of Ottawa General Hos- 
pital. Half fee wounds were closed wife 
a medical glue, fee other half with 
stitches. Deep wounds feat normally 
require two layers of stitches were given 
stitches be neath the skin and then ran- 
domly assigned to be closed wife glue or 
stitches on fee surface. 

Cer tain wounds were excluded be- 
cause of the risk of infection and other 
complications, inclu ding animal bites 
and scratches and puncture wounds. 

The study found feat fee wounds in 


a new product, Denuabond. whose 


Ou 


manufacturer. Closure Medical Corn, of 
Raleisb. North Carolina, financed the 


Raleigh. North Carolina, financed the 
study. The company is awaiting apj 
proval by tbe Food and Drug Admin- 
istration and expects a decision this 
year. If approved, it would be the first 
medical adhesive available in the 
United States. . * 

In addition to emergency room in-_ 
juries, doctors say that medical adhes- 
ives coaid replace stitches and staples in 
closing certain surgical wounds. A- 
study published in fee February issue of 
The Journal of Otolaryngology, also' 
financed by Closure Medical, found' 
Dermabond to be as good as stitches fan 
hftflri and neck incisions from such pro?: 
cednres as cancer surgery, tbyroidecw 
tomies and biopsies. 1 - 


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each group healed equally well when 
evaluated within fee first few days or 


been used for decades in Canada. Europe, 
Israel and fee Far East But doctors in the 


Israel and fee Far East But doctors in the 
United States paid little attention to them 
until the last year or so because fee older 
glues had many limitations. 

For one thing, they were too weak for 


evaluated within fee first few days or 
weeks and again after three months. But 
fee glue had two big advantages over 
stitches, first, it closed die wounds in a 
quarter of the time: about 3.6 minutes 
compared with 12.4 minutes. And pa- 
tients reported significantly less pain. 

Patients wbo returned for a three- 
month follow-up had their wounds pho- 
tographed. On two occasions, a plastic 
surgeon looked at tbe photographs to 
evaluate the cosmetic results of fee 98 
wounds shown, unaware of which meth- 
od was used to close them. Each time, 
tbe surgeon gave fee wounds from each 
group fee same overall evaluation. 

The glue used in Dr. Quinn’s study is 


T HERE are some drawbacks ten 
all kinds of medical glue. Dm 
Quinn said. For one thing, it? 
cannot be used on the feet; 
bands or joints because fee repetiti\$ 
movement of those areas can cause it to 
peel off. taking fee top layer of skin wife! 
it. Also, frequent handwashing can! 
wash it off, although a daily showen 
does not seem to be a problem. 

Another drawback is that medical 
glue is tricky to use. Dr. Quinn said iri 
was unpopular in certain parts of! 
P anaria because many doctors used if 
improperly and got poor results. -, i 
Glue is meant to be painted on top o ft 
a wound’s edges while the edges are 
held together by someone’s fingers, but 
Dr. Quinn said that many doctors mis-i 
takenly put it between the edges. If re 
gets into a wound, it can interfere wife 
healing, promote infection and result im 
an unsightly scar, he said. 

But Dr. Trott believes that wife min-j 
imal training, even laymen can learn up 
use medical glue properly. He envisions 
aday when families will take it on camp?, 
ing hips. “It’s not like it takes a medial- 
degree to handle this stuff,' ' he said. 


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sense. 

Instead. Dr. Feduccia says fee bird- 
like, dinosaurs are an example of con- 
vergent evolution, the process fay which 
creatures acquire characteristics like 
those of other species independently. 

Just as bats are mammals feat gaiperi the 

power of flight without being birds. Dr. 
Feduccia argued, fee birdlike dinosaurs 
are just fear: birdlike, not birds. “Yes, 
birds superficially resemble dino- 
saurs,” Dr. Feduccia said. “But when 
you get down to the nitty gritty, goblins 
start to creep out. ... I believe that the 
dinosaiman evolutioiu^f. birds will be 
fee greaiest;embarras&ent of this cen- 
tuty in paleontology.'' Dr. Novas- 
bristled at such2krguments. “Can you 
put on fee desk the evidence supporting 
feat birds are not related to dinosaurs?” 
he asked. “Please do thai and I will 
change my opinion.’' 


Magnetic Hints of Life on Moons* 


By WiLliam J. Broad 

New York Times Service 


EW YORK — - When sci- 
entists wonder about the hid- 
den depths of a moon or 
planet, they often look for 
signs of a magnetic field. 

On Earth, the lines of magnetic force 
enveloping fee planet indicate the -hot 
churning of a molten core. At the sur- 
face, gedogiceffects of this commotion 
help make Earth a habitable place, con- 
stantly shaping fee land and sea, power- 
ing earthquakes and volcanoes, recyc- 
ling fee crust and keeping- planetary 
ingredients in a stir beneficial to life. 

But what of other worlds7 Scientists 
have searched for magnetic fields 
around rocky extraterrestrial bodies 
partly as a way to gauge the presence 
and prevalence of deep geologic activ- 
ity, but until now the hunts have mostly 
been unsuccessful. Nothing substantial 
has been found around fee Moon, or 
Mars, or Venus — all of which have 
been written off as geologically dead or, 
at the very least, lost in deep slumber. 
Earth, with its churning core, has 
seemed more and more unique. 

But now, the National Aeronautic and 
Space Administration's Galileo probe 
of Jupiter has found that three of fee- 
placet’s large moons — Io, Europa and 
Ganymede — are pulsating wife signs 
of magnetic fields, suggesting that lay- 
ers of thick ice on those distant worlds 
hide interiors that are potentially alive 
geologically, and possibly biologically. 

Tbe lines and ridges, furrows and 
Fissures feat deeply wrinkle fee surfaces 
of these icy moons ( and in the case of lo. 
the volcanoes) had already hinted at an 


interior drama. But fee clues now sug- 
gest fee activity- is widespread and going 
on now. rather than ages ago. 

Indications of magnetic fields around 
Io and Ganymede are analyzed in fee 
current issue of fee journal Science, and 


the Europa findings are to be announced 
in fee journal on Friday. (Experts writ- 


ing last week in fee journal Nature de- 
clared feat fee fourth and most distant of 
fee large Jovian moons. Callisto, was 
magnetically barren.) . 

The positive finding*; about feeferee 
Jovian moons, scientists say, raise the 
odds that their depths may be habitable 
and may harbor alien life, perhaps 
swimming through dark seas. Such 
speculation is an increasingly popular 
topic among planetary scientists. 


AGNETIC fields could be 
beneficial to life not only 
because they imply inner 
heat and geologic vitality, 
scientists add. but because they would 
help shield the moons and any alien 
creatures from cosmic rays, the streams 
of highly penetrating particles that 
speed through space. Earth’s magnetic 
field deflects many of these deadly ra- 
diations. 

“It's very exciting,’’ Dr. Margaret 
Kivelson, an astrophysicist at the Uni- 
versity of California at Los Angeles 
who is fee lead scientist interpreting fee 
.magnetometer readings of fee Galileo 
probe, said in an interview. “The im- 
ages we receive show only surfaces, and 
sometimes you can infer a bit about 
what's going on below, like wife Europa 
and all the floes. But when you measure 
a magnetic field, it gives you important 
clues. They’re not always unambigu- 


ous. but they give you a sense of 
something going on deep inside.” 

Jupiter is the solar system's biggest? 
planet, wife 16 known moons, four of 
them quite large. Ganymede, the biggest 
moon in fee solar system at 3.269 miles 
(5.260 kilometers) in diameter, is larger 
than Mercury. 

Increasingly, scientists say, the large 
Jovian moons are proving to be more' 
surprising and interesting than Earth’s 
planetary neighbors. . ~ 

“This streai^f daft, is strengthening 
our thinking of moons as worlds in their 
own right” said Dr. Louis Friedman^ 
executive director of fee Planetary So-, 
ciety, a private group in Pasadena that' 
backs space exploration. “That change 
started to happen wife Voyager, as we 
saw volcanoes on Io.” The Voyager 
spacecraft flew past Jupiter in 19/9. 

“Now.” Dr. Friedman added, “it’s- 
really happening as we see hints of all' 
these processes going on.” 


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venting the magneoc compass, which, 
aligns itself with magnetic lines of 1 
force. By fee 12th century, seamen used- 
the instrument in the Mediterranean. • - 
A magnetometer is a modem tool thai^f- 
measures the strength of magnetic/ 
fields, simple ones being akin to com-J 
passes. Magnetometers hurled into) 
space in the last few decades failed to 
find signs of substantial fields around* 
the Moon. Mars and Venus. Butin 1974' 
and 1975, the Mariner 10 spacecraft 
while studying Mercury found signs of a* 
field whose strength was less than 1 
percent of Earth's, suggesting the planet 
has some degree of inner activity. 


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20 Homes of the 
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44 Prison guard, in 
slang 

49 Air shafts lor 
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50 Hearty? 

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THURSDAY, MAY 22, 1997 


PAGE 11 


Yeltsin Outlines Proposal 
To Redirect Economy 

Sudget Seeks to Reduce Role of State 


By Michael R. Gonion 

New York Times S*r^, 


— The Russian govern- 
ment Wednesday made its case for 
dadung the federal budget and redi- 
recting the nation s economic priorities 
a n 5 w spending jLi that 
anneri to reduce the government’s over- 
all role in the economy. 

The pl an, which reflects the influence 
of Boris Netmsov, Anatoli Chubais and 
j reformers in the government, 
would also severely cut industrial and 
agricultural subsidies, while continuing 
“P^ back wages and pensions. 

« sharpy pares spending on the be- 
teaguered Russian Army, reflecting the 
Kremlin s assessment that the primary 
threat to the country is the failure of 
economic reform, not foreign militari es 
:. Under the new plan, which was out- 
toed before the Parliament by Prime 
Minister Viktor Chernomyrdin, the 
1997 budget would be cut by 108 trillion 
rubles ($18.87 billion ), a 20 percent 
reduction. 

: That would reduce federal spending 
lo 15.5 percent of gross domestic 
product, down from the 19.4 percent 
anticipated in the original version of the 
1997 budget, which the Parliament 
adopted earlier this year. 

The plan was prepared after the gov- 
ernment’s campaign against tax delin- 
quents failed to increase revenue. 

' In a surprisingly blunt speech before 
Parliament, Mr. Chernomyrdin ac- 
knowledged that die tax crackdown net- 
ted only 65 percent of anticipated rev- 
enues this year. 

“I should say frankly that the gov- 
ernment has failed to accom plish all the 
^measures that were planned." he said. 
7*' We have no right today to indulge in die 
hope that the situation will be stahiliTeri 
of its own accord- It would be more 
honest to admit that we exaggerated oar 
capability to bring in more revenue." 

Mr. Chemoymridin also firmly re- 
buffed Communist demands that Russia 
try to cover die shortfall by printing 
more money. 

“It is said this will be like oxygen for 
the economy," he said. “This wll not 
be oxygen. This will be something that 


you inhale only once and then for shud- 
der for die last time in your life." 

In pressing fix- cuts Yeltsin aides say 
they are willing to listen to the Par- 
liament’s ideas about bow to cut die 
budget and raise revenue. But there is 
little doubt that massive spending cuts 
need to be made. 

The origin of the budget crunch were 
laid this winter when the Yeltsin gov- 
ernment and the Parliament agreed on a 
1997 budget that raised federal spend- 
ing to 530 trillion rubles. 

“Neither the government nor most 
Duma members have the courage and 
determination to say: let us divide the 
available money," Yegor Gaidar, the 
former prime minister and the head of 
leading reform-minded research center 
said earlier this year. “The state is the 
main source of disorder and chaos in the 
economy because it gives out promises 
and does not fulfill them." 

But it was the revenue shortfall that 
forced the government’s hand. 

Not only has the tax crackdown failed 
to boost revenue, according to some cal- 
culations revenue has actually de- 
creased. Western economists say that 
during die first quarter of 1997 revenue 
amounted to 63 percent of gross national 
product. Last year, revenue was 9.5 per- 
cent, though diat figure was inflated fey 
the liberal use of tax credits. During 
1992, revenue was 16J percent 
Faced with a shortage of funds and 


determined not to fuel inflation by print- 
-minded of- 


ing more money, refbon-i 
facials took advantage of the crunch to 
by drafting a comprehensive budget se- 
questration to reorient spending. 

“This conforms to our strategic goal 


as a share of GDP. which will provide the 
conditions for gradual redaction of the 
tax burden," Alesti Kuntin. the first 
deputy Finance Minister, said. 

The Yel tsin government insis ts its 
cuts will not interfere with paying of 
back wages and pensions. But many of 
the C nmmim i<>-H ftnihMiteH Parliament’s 
favorite programs would be hit bard. 

The Russian militar y, already in a State 

of near-collapse; is a major target. Spend- 
ing an national defense will be cm from 
104 trillion rubles to 83 trillion billion. 


Bundesbank Council Member 
Sees ‘Tense’ Talks on Reserves 


Bloomberg News 

\ FRANKFURT — A senior Bundes- 
bank council member warned the gov- 
ernment Wednesday that it faced 
“tense" discussions with the central 
bank’s 17-member council over plans to 
revalue the bank’s gold reserves, 
f. "If it comes to a quick payout, tteo 
we would need a very serious discussion 
about tbe inflation dangers and the dam- 
age to credibility it would do,” the 
council member, Hans-Juergen Roeb- 
uck, said in Mainz. He said tbe request 
^for revaluation was “not a bap^y event 
this phase of consolidation,’ nor for 
tiie process of budget-cutting for Euro- 
pean economic and monetary union. 

„• The government is desperate to refill 
its coffers as the deadline approaches to 
qualify for monetary union. 

. In its 1996 annual report, the Bundes- 
bank valued its gold reserves ar 13.7 


billion Deutsche marks ($8.06 billion). 
At current market value, those holdings 
would be wrath about 57 billion DM. 

The profit would be transferred to the 
federal government’s balance sbeetun- 


der “profit and prop er ty income" and 
1.5 percents 


remove about Ijpercentage points from 
its debt as a proportion of gross domestic 
product That would put fee debt level at 
or near fee 60 percent of GDP needed to 
qualify fra tiie common currency. To 
qualify for monetary union countries 
also must have budget deficits no that 
more than 3 percent of GDP. Mr. Koeb- 
nick said it appeared Germany would not 
make that cutoff “without tricks." 

A waiver of tiie criteria 1 ’wouldn’t be 
optimal," be said. “If Germany doesn’t 
meet 3 percent, it would be very painful 
and a waiver would .mean Germany’s 
voice in EMU would cany less 
weight.” 


The Economy Is Running Close to Flat Out .. ...With No Sign of Inflation 



Sauna: Hover Anefytfcs 


Tbe New York Times 


U.S. Seems to Be Slowing, With or Without Fed 


By Louis Uchitelle 

New York Times Service 


But spurts of more rapid growth dur- 
e U.S. e 


NEW YORK — Whatever tbe Fed- 
eral Reserve Board does over the next 
few months, the U.S. economy ap- 
pears to be beading, on its own, into a 
period of slower economic growth. 

"Weaker is not bad," sand Robert 
Reischauer, a fellow at the Brookings 
Institution. “We are still talking about 
positive economic growth." 

Virtually no economist is predicting 
a recession, but many see a slowdown 
to perhaps half the booming annual 
growth rate of more than 4 percent feat 


mg tbe U.S. economy’s current expan- 
sion, such as the one this past winter, 
have not lasted long. The gross do- 
mestic product, or value of all goods and 
services a nation produces in a given 
year, has risen at an average annua] rate 
of only 2.7 percent since the last re- 
cession ended in the spring of 1991. 

That growth rate has not been strong 
enough to create tbe shortages that 


push up inflation. Going back to tbe 


prevailed from October through 
March. M 


Many analysts consider such 
rapid growth to be inflationary, if it 
lasts long enough. Eventually, wife 
very strong growth, shortages of labor 
and merchandise develop and push up 
wages and prices. 


start of tbe decade, the growth rate is 
even lower, a mild 2.1 percent a year, if 
the 1990-91 recession is averaged in. 

Tbe economic expansion of tbe 
1990s, now in its seventh year, has 
been marked by alternating periods of 
strong and weak growth. A booming 
1994, for example, was followed by a 
weak 1995, mostly because the Fed 
had raised interest rates sufficiently to 
slow the economy. The slowdown un- 


der way now — after a winter in which 
fee economy boomed — appears to 
reflect more natural causes. 

“With fee economy slowing, it is 
quite plausible that we can have a 25 
percent growth rate and the Fed does 
not have to lift a finger," Lee Price, 
chief economist at the Commerce De- 
partment, said. The Fed’s top officials, 
at their policy meeting Tuesday, de- 
cided not to follow a rate increase in 
March wife another one now. 

Since early April. U5. retail sales 
have fallen, and stockpiles of unsold 
goods have piled up. This inventory 
acc umulati on accounted for a big 
chunk of fee strong economic growth 
in the first quarter. 

Working off those stockpiles now. 
in the fa ce of weaker retail sales, 
means cutbacks in industrial produc- 
tion, at least temporarily. These cut- 
backs have already begun to show up 


in government statistics as weaker 
growth in the second quarter. 

“What is going on now is a mini- 
inventory correction," said Lyle 
Gramley, a consulting economist at 
fee Mortgage Bankers Association 
and a former Fed governor. “That is 
normally a short phenomenon.” 

The big question is how long the 
slowdown will last. There is no way to 
answer that question yet. If fee invent- 
ory correction follows a typical pattern, 
tiie economy might be growing more 
strongly again by this autumn or winter, 
once retailers arid wholesalers decide to 


step up orders to restock their shelves. 
Some ineredie 


ingredients of last winter’s 
strong growth, however, might not re- 
cur. Warm winter weather, for ex- 
ample, encouraged shopping and con- 
struction activity, as did an 
unexpectedly large flow of income-tax 
refunds in the weeks before April 15. 


Stalking the Fed’s Rate Moves From the Foxhole ’ 


By JillDott 

Washington Post Service 


NEW YORK — Jim Cramer got to 
his office at 4:30 AM. to plot strategy, 
ft was die day the Federal Reserve 
Board would decide whether to raise 
short-term interest rates, and Mr. 
Cramer wanted to be prepared. 

The president of the money-man- 
aging fmn Cramer, Bcrkowitz & Co., 
Mr. Cramer manages $265 million for 
wealthy clients and friends from a 
small Wall Street office that he calls 
tbe “foxhole.” 


Every day, and feis Tuesday in par- 
ticular, he hu 


ticular, he hunkers down to do battle 
with the financial markets, trying to be 
quicker, smarter and more intuitive in 
distilling an overload of information 
into decisions about the right stocks to 
bey and sell and tbe right time to do 
either one. 

So there be was before dawn, draw- 
ing up a plan of action for zero hour 
tiie moments after 2: 10 P5L, Mien the 
Fed would announce its decision. 

If fee Fed raised rates a quarter of a 
percentage point, Mr. Cramer would 
buy recession-resistant stocks, such as 
McDonald's Coip., PepsiCo Inc. and 
Philip Morris Inc. A "disaster sce- 
nario" of a half-point increase would 
mean baying Kellogg Co. and General 
Mills Inc. while selling retailers. 

No change in rates would mean cyc- 
lical and financial issues: Citicorp, Du 
Pont Co., Microsoft Corp. and Na- 
tionsBank Corp. 

“I’ll get all I can," Mr. Cramer said, 
“but only if die stocks are in line" — 
meaning if others had not beaten him 
and the stocks’ prices had not surged 
before he could place his order. ‘Til be 



Qounced no change in interest rates. 
The stock jumped to $60.25. He also 
got a whopping 50,000 shares of Mi- 
crosoft at $1 16: it dosed at $1 19.125. 

“There was a monster seller who 
wasn't paying attention to the fact fee 
whole world had changed," Mr. 
Cramer said wife glee. 

Tbe Fed makes one decision to 
stand pat on interest rates, and that 
means tiie whole world has changed? 

“Sure it has," Mr. Cramer said. 
“The Fed's not meeting again until 
July. That’s a lifetime away. They tell 
me.mflation’s not; a problem, and I. 
believe them. They ten me I’m free-to’ 
go outand do what I want. Today is the 
first day of the summer rally, and it 
will last until July. I got an opportunity 


for fellow market junkies. His open- 
ness about how and what he trades is 
unusual on Wall Street, and it once got 
him into trouble. 

He wrote a magazine article about 
four small stocks he loved and owned. 
The thinly traded shares all soared in 


to getf on today, and I feel great.” 


Miaa M—/1W W b limgiw ftt 

Jim Cramer battling tbe markets. 


rigorous about this, not emotional.” 

Mr. Cramer admits be is obsessed 
wife tbe stock market Isn’t everybody 
these days, with the Dow Jones in- 
dustrial average well over 7,000 points? 
But Mr. Cramer is really obsessed. 


‘I go crazy about this," be said the 
other day. “lg 


. go to a ballgame and see 
a sign for Budweiser; I start thinking: 
Now, Anheoser Busch at 43 — " 

On Tuesday, obsession paid off. Mr. 
Cramer bought NationsBank at $59 a 
share just seconds after the Fed an- 


. Cramer did miss oat on Citicorp. 
He wanted to buy at no higher than 
$ 1 17. bat tbe stock leaped immediately 
from $11550 to $118. “To get feat 
trade, you would have had to place 
your bet before tbe announcement, and 
I can’t play that way. Too risky.” 

Mr. Cramer gets up at 3:30 most 
mornings and works at home before 
getting to tbe office by 5:30. Every day 
he reads 16 newspapers and hundreds 
of research reports and news releases, 
always looking for an edge on a stock. 
He often gets one. His compound an- 
nual return to investors is 22 percent 
since January 1988, compared wife 14 
percent for fee Standard & Poor’s 500- 
stock index. 

He has two loves: playing fee mar- 
ket and telling people how he is play- 
ing tbe market He is a regular com- 
mentator on CNBC, and be is a co- 
own ear of and columnist for feestreet- 
.com, a World Wide Web newsletter 


ion checked to see whether 
he might have profited from manip- 
ulation. But Mr. Cramer had not sold 
his shares into the rally, and the SEC 
quickly dropped its inquiry. 

Mr. Cramer no longer gives advice 
on whether to buy or sell individual 
stocks. 

He buys and sells constantly to 
make profits of about 50 cents a share, 
selling when be thinks investors are 

le thinks they are too gloomy? 8 

“The vast majority of what 1 do is 
try to assess whether fee market itself 
is wrong on a short-term basis." be 
said between shouting orders to his 
staff of seven and tapping among six 
computers on his trading desk. 

On a recent day when tbe Dow was 
up a lackluster 35 points on low trading 
volume, for example, Mr. Cramer 
made 100 stock trades and 50 options 
trades. He was in and out of several 
companies* shares in just a few hours. 

But that does not mean he hasn’t 
heard of buy-and-hold investing. 
About half of his $265 million port- 
folio is invested in companies he rarely 
trades. His best trade ever, he says, was 
a seemingly simple one: He bought 
Intel Corp. shares eight years ago and 
held on to them. 

During the fiasco three years ago 


See FOXHOLE, Page 15 


EU Acts Cautiously in Move on Boeing-McDonnell Merger 


By Tom Buerkle 

r lniematUmal Herald Tribune 


\ BRUSSELS — The Euro- 
pean Commission gave fee 
green light Wednesday for 
the sending of a s tat e m ent of 
antitrust objections to Boemg 
Co. regarding its pbmned ac- 
quisition of McDonneU 
ffongias Corp_ and stressed 
its determination to apply 
European merger rules ob- 


jectively, officials said. 

Tbe careful stance, as well 
as a clampdown on public 
(-rimm enn on tire case, was 
seen as a clear response to 
charges from several Amer- 
ican politicians that Europe’s 
antitrust review was being to 
fluenced by a political desire 


uuvuwm —j — r-- ; _ 

to help Airbus Industrie, Boe- 
ing’s European competitor. 
^The caution also reflected 
widespread concerns within 


tiie c ommis sion, the Euro- 
pean Union's executive 
agency, about the potential 
for a major trans-Atlantic 
trade dispute over tiie case. 
Boeing is America’s leading 
exporter Mule Airbus is its 
chief competitor, and 
Europe’s best success story in 
govern mem-assisted indus- 
trial planning. 

“Because it is a political 
matter, the commission should 


be seen to follow fee rules," a 
co mmissi on offi cial said. 

Karel van Miert, the com- 
petition commissioner, whose 
blunt public criticism of tbe 
Boeing-McDonnell deal in 
recent weeks has angered the 
companies, seven U.S. sen- 
ators and senior officials in 
the Clinton administration, 
also adopted a lower profile, 
briefing his colleagues on the 
case at tiie commissian’s 


to comment publicly. 
Commission officials 


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said 

Mr. van Miert had reiterated 
his strong concerns about the 
merger's impact cm compe- 
tition and confirmed that his 
merger task force would send 
a lengthy list of objections to 
Boeing and McDonnell, most 
likely on Thursday. 

Previously, Mr. van Miert 
has called Boeing's long- 
term, exclusive-supplier con- 
tracts wife American Airlines 
and Delta Air Lines unaccept- 
able, and commission sources 
have threatened fines of up to 
10 percent of the combined 
company's sales, which 
would amount to penalties of 
close to $5 billion, if those 
contracts are not rewritten. 

Boeing has insisted that tbe 
contracts, and the broader 
merger, be handled primarily 
by U.S. antitrust regulators 
because they involve only 
American companies. 


Separately, Mr. van Miert 
also briefed tbe 20-member 
commission about his objec- 
tions to the .proposed link-up 
between British Airways and 
American Airlines. 

Mr. van Miert has called 
for fee two companies to give 
up hundreds of take-off and 
landing slots at London's 
Heathrow Airport to reduce 
tbeir dominant 60 percent 
share of the lucrative North 
Atlantic air routes. 

The BA-American deal 
suffered a second potential 
setback on Tuesday when 
Senator Orrin Hatch. Repub- 
lican of Utah, urged the U5. 
Justice Department to hold 
public hearings on the alli- 
ance. 

Those bearings would add 
at least six weeks to the U.S. 
antitrust review of the alli- 
ance and give competitors of 
the two airlines a public stage 
to press their complaints 
about the deal. 


Clear Sky for U.S.- Seoul Pact 


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SEOUL — South Korea said Wednesday that it could reach 
agreement with the United States on an open-skies accord as 
early as July, following a successful first round of talks. The 
U.S. side also expressed satisfaction with the talks. 

The talks with South Korea, proposed last year, are re- 
garded as highly important for the success of negotiations in 
Asia becanse Japan and China, the two largest Asian powers, 
are negative or indifferent to them. 

Two South Korean airlines fly 173 passenger and cargo 
flig hts to the United States a week, while nine U5. airlines 
make 96 such flights to South Korea. U.S. airlines also make 72 


(JoneJ 
Soata; Roatea. 


nvftc 


weekly flights to Hang Kong, Taipei, Singapore, Kuala Lum- 
pur and other Asian points by way of Seoul. (Bloomberg, AP) 


SPIRIT 
OF THE SEA 


Admiral’s Cup “Marees" Its special and 
exclusive automatic movement gives 
the time of the high and low tide and 
the strength of the current in relation 
to the phases of the moon. It also has a 
calendar, centre seconds and 24 hour 
supplementary dial. Patented. 



CORUM 


Mattres Artisans dfiorlooerie 

SUISSE 


For information write to Comm, 2301 la Ottus-dc-Ftods, S*rta«fand. 







PAGE 12 


INTERNATIONAL HERALD TRIBUNE, THURSDAY, MAX 22 , 1997 


THE AMERICAS 




Freeing Banks for Business 

U.S. Proposal Would Expand Links to Commerce 


Lingering Rate Fears 
Drive Stocks Lower 


rjiairiiM 

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D ' J 1 F M 'a M 11U,_ D ' J r F M A M 


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The Associated Press 

WASHINGTON — President Bill Clinton’s ad- 
ministration asked Congress on Wednesday to mod- 
ernize the U.S. financial -services system by remov- 
ing Depression-era limits on how banks, brokerage 
firms and insurance companies do business. 

Under the proposal, outlined in a speech by Treas- 
ury Secretary Robert Rubin, banks, securities firms 
and insu ranc e companies would be able to affiliate 
with one another. 

Federally insured banks would also be permitted to 
offer a wide range of financial services they now can 
provide only through a complex holding-company 
structure. 

“Our objective is simple: modernizing financial 
services in a way that will benefit consumers, busi- 
nesses and communities, enhance competitiveness of 
our industry worldwide and protect the safety and 
soundness of our financial institutions," Mr. Rubin 


said. Opponents of mixing banking and commerce, 
including the chairman of the House of Represen- 
tatives Banking Committee, Jim Leach. Republican 
of Iowa, have argued it would create dangerous 
concentrations of economic power and risk conflicts 
of interest. 

“It mnang a totally different economic system for 
the United States," said Kenneth Guenther, executive 
vice president of the Independent Bankas Association 
of America, which represents community banks. 

‘‘There will be fewer aod bigger competitive 
units," he said. "For the small business person, see if 
he can get impartial credit if bis competitor down the 
street is owned by the bank.' ’ 

But the administration left open for now its stance 
on the question ofwbether banks should be permitted 
to own commercial companies whose activities 
could range from manufacturing to real estate de- 
velopment 


r..*; 1 ? * STT ^ 1 

Source: Btoombatg, Reuters faenmiand HcrjtJdTntaic 


TRADE: U.S. Deficit Narrows as Exports Hit a Record 

Continued from Page 1 stuff. That mindset has changed dra- markets that place sub 


Very brief lys 

Household International Expands 

NEW YORK (Combined Dispatches) — Household In- 
ternational Inc. agreed to acquire the consumer-lending busi- 
ness of Transamerica Coip. for $1.1 billion in cash, a move 
that will almost double Household’s branch network, the 
companies announced Wednesday. 

Through several subsidiaries. Household International, 
based in Prospect Heights, Illinois, makes home-equity and 
unsecured lows to consumers who may have trouble bor- 
rowing from banks. The units also offer credit cards, credit life 
insurance and used-car loans. 

In addition to being one of the top U3. providers of 
consumer loans, San Francisco-based Transamerica sells life 
insurance, tax services and transportation equipment. 

The move "fits Household’s strategy — it is low-risk, and 
it adds to earnings,” said Gary Gordon, an analyst at 
PaineWebber Inc. (AP, Bloomberg) 

Tyco Plans to Acquire Keystone 

HOUSTON (AP) — Keystone International Inc., a man- 
ufacturer of industrial pipes and valves, will be acquired by 
Tyco International Ltd. for stock valued at about $1.2 billion, 
the companies announced. Houston-based Keystone has an- 
nual revenue of approximately $700 million. 

Tyco International, based in Exeter, New Hampshire, is a 
manufacturing concern not related to Tyco Toys Inc. Its 
products include disposable medical products, fire extin- 
guishers and valves. It operates in more than SO countries and 
has revenue of more than $6 billion annually. 

• Wells Fargo & Co. said its president, William Zuendt, 
would retire before die end of the year. 

• BMC Software Inc. said it had acquired closely held 
DataTools Inc. for $60 million to expand its product line. 


report was considered good news. 
Cynthia Latta of the forecasting 
company DRl/McGraw Hill near 
Boston, said, “I think the important 
thing is that our exports picked up 
and look pretty strong . ” 

With the dollar’s recent advance 
apparently having come to an end, 
she said that performance could 
continue: "U.S. manufacturing and 
services are very, very competit- 
ive.” 

Ms. I *tt« added that American 
companies "are much more inter- 
ested in selling abroad than they 
were at one time." 

She said, "Fifteen, 20 years ago, 
they didn’t think there was anybody 
abroad who could afford to buy their 


stuff. That mindset has changed dra- 
matically." 

Samuel Kalian, who runs A3JC 
Financial Research Ltd. in Chicago, 
agreed the trade data showed a 
growing American economy, but he 
cautioned that the numbers only ap- 
proximately measured the country's 
commerce. 

"A lot of software sold on the 
Internet may not be properly eval- 
uated,’’ be said by way of example, 
nor are the economic activities of 
foreign students in the United States 
entirely captured. 

Mr, Kflhan was sanguine about 
the large deficit with Japan, which 
widened by about 8 percent in 
March, to $4.6 billion. He said the 

C em was largely a reflection of 
i’s domestic situation, with 


markets t hat place substantial 
obstacles in the way of exporters. 
This forces Japanese consumers to 
finance the country’s trade surplus, 
be said, and that situation is erod- 
ing. 

China, however, is "amuch more 
difficult nut to crack," be said. 
While the country is clearly pro- 
ducing low-tech goods at inexpens- 
ive prices for world markets, a 
factor helping to limit inflation, 
what it chooses to do with -its export 
earnings could become important. If 
the money is being used to finance 
capital improvements, that will ben- 
efit the country’s economy and help 
integrate China with the rest of the 
world. But if it is being used to buy 
"ostentatious goods," that would 
be ted. 


CoapUb OurSLtf From Cup**e 

NEW YORK — Stocks retreated 
from record levels Wednesday, led 
lower by financial shares, on con- 
cern that foe Federal Reserve Board 
will raise U-S. interest rates later 
rhw year after deciding not to Tues- 
day. 

The Dow Jones industrial aver- 
age fell 12.77 points to close at 
7,290.69 after briefly touching an 
all-time high of 7352.91 . The Stan- 
dard & Poor’s 500-stock index fell 
3.11 points to 83939, losing an 
early pin that pushed it to a re- 
cord. 

Also helping drive stocks lower 
was a government trade report that 
showed record exports and imports, 
which revived concern that toe Fed 
may raise foe federal funds rate 
above its current 53 percent to slow 
foe economy arid head off inflation. 
"There's still that cloud hanging 
over foe market” that foe Fed may 
raise interest rates when it meets 
July 1 and 2, said Don Hays, di- 
rector of investment strategy for 
Wheat First Butcher Singer. 

The trade repeat and interest-rate 
uncertainties punished bond prices. 
The benchmark 30-year Treasury 
bond fell 2 1/32 to 95 27/32, pushing 
foe yield, which moves in the op- 
posite direction from the pice, up 
to 6.96 percent Wednesday from 
6.90 percent Tuesday. 

JJ. Morgan, one of the bank 
companies most sensitive to 
chan ges in borrowing rates, led foe 
Dow lower, falling 1% to 103% in 
late tr adin g. Citicorp fell 3 to 117%, 
Chase Manhattan slid 2% to 94, 
BankBoston was off 1% to 74%, 
Bank of New York fell 1% to 41, 
and Bankers Trust New York 
slipped 1 % to 81 !A Other Dow com- 


ponents that declined were DuFom, 
down % to 110%, and Johnson & 
Johnson, off 1 J-4 to 59%. 

The technology-foeayy Nasdaq 
Composite index, meanwhile, was 
up 5.93 points at 1369-81. Dell 
Computer, which jumped 8% in late 
trading to 107%, led the index higl^ 
ef. The company’s first-quaxte^ 
<*gmin g!c more than doubled, top? 
ping analysts’ estimates. Other tech- 
nology gainers incladed Compaq 

U.S. STOCKS 

Compute r, up 714 to 10414; Miy 
crosoft, up 1% to 121; Intel, up 2% 
to 163%; Cisco Systems, up 1*4 tq 
65%, and Oracle, up 116 to 46%. 

Schering-Plough, which make$ 
the top-selling antihistamine. Qar- 
itin, rallied 2% to 89%. .The con£ 
pany raised its 1997 eamings-peft: 
share growth estimate. 

The recent advance in sharS 
prices to records has been good 
news for shares of companies that 
own mutual-fund advisers. T. Rov* 
Price Associates gained 214 to 50 
Franklin Resources climbed % tc 
64%, and Marsh & McLennan 
which owns Putnam Investments 
gained 1% to 130. 

The Dow Jones transportation 
average briefly leaped to a recori 
before slipping to 2,66234, dowr 
11.10. The climb to a record is t 
good omen for the stock market 
investors said, because brisk de- 
mand for transportation service? 
suggests manufacturing companies 
and the economy are doing well 
Among the gamers. CSX rose % tr 
51%, Union Pacific rose % to67V4 
and Burlington Northern Santa Ft 
gained % to 81%. 


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(Bloomberg, API 


Despite Rise in Czech Interest Rates, Koruna Devaluation Is Still Seenj 


Jtired by By Peter S. Green 

3 billion iKunydontd Herald Tribune 

iehas an- PRAGUE — The Czech koruna 
stabilized Wednesday as central 
shue, is a hankers again raised interest rates to 
s Inc. Its fend off speculators. 

\re extin- “For the time being, the central 
a tries ana hank is winning, but we believe that 
in the end the koruna will lose 10 to 
i Zuend t. 15 percent." said Vladimir KreidL 
an economist with Patti a Finance in 

sely held interbank market, dealers 

• product ™e. reported that the overnight rate hit 
Bloomberg 550 percent as cash-strapped Czech 


banks struggled to fill their coffers 
to meet the central bank’s biweekly 
check on minimum reserves. 

The rate increases appeared to 
slow the koruna's slide in European 
trading. In morning trading in New 
York foe dollar was quoted at 30.43 
koruny, down from 3035 a day earli- 
er . Dealers and economists, however, 
said a devaluation of between 5 per- 
cent and 15 percent still was inev- 
itable and could come this weekend. 

"Every da y we have these high 
interest rates; the situations of an 
increasing number of industrial and 
financial companies is worsening." 


Mr. Kreidl added. The central bank 
pegs foe koruna to a basket of dollars 
and Deutsche marks and has been 
struggling to keep it within a range 

FOREIGN EXCHANGE 

of 73 percent on either side of the 
central rate. But foe continued poor 
p er forma nce of foe Czech economy 
and foe government’s appar ent in- 
ability to cut its trade and current- 
account deficits have fueled spec- 
ulation that foe currency would falL 
If the koruna is devalued, “there 
would be other currencies within 


Eastern Europe that would be tar- 
geted, foe most obvious being foe 
Slovak crown." said Paul Lambert, 
an economist at UBS in London. 

■ U.S Trade Data lift Dollar 

The dollar was higher against oth- 
er major currencies late Wednesday 
after the US. government reported a 
bigger-tban-expected 19 patent de- 
cline in the March trade deficit, 
news agencies reported. 

At 4 P.M., the dollar was quoted 
at 114345 yen, up from 112350 
yen, and at 1.6940 Deutsche marks, 
up from 1.6758 DM. It was alsoat 


5.705 5 French francs, up front 
5.6435 francs, and at 1.4080 Swiss . 
francs, up from 13840 francs. ThriP 
pound Fell to $1.6447 from 
$1.6570. . J 

Meanwhile, the Swiss centra) 
bank said it bad increased liquidity 
to contain a rise in the value of fod 

franc and was c ontinuing this policy 

‘ ‘in a substantial way. " » 

The bank said funds made avail-] 
able to banks in Switzerland had 
risen to 433 billion francs from be- 
tween 3 billion and 3.8 billion francs 
at the beginning of foe year. 

(Reuters. AFP) 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY, MAY 22- 1997 


IAGE13 


EUROPE 


Chairman Resigns 
* As KLM Slips Again 


P«day for Uie second straight quaner 
tad its chairman resigned to leT^w 
S^gemCTt tafa. on fl^Sof cutti^T 

j.^te5r4^-g-g 

5^ars wnh die airline and more than six 
years at the helm. He will be replaced bv 
Aecungm managing director, Leo vaj 

fa/^pl'd?” 6 * ClOSCd M 5980 8 uad - 

Bouw s successor is more involved 
on the operating level — he’s rather 
aggressive, said Rene van Geffen, an 
apatyst at F van Lanschot BanJders NV. 

KLM needs this. In the last two years 
dungs haven't developed in the way 
Jbey should for a global airline.” 
_KLM has not been as successful as 
Jfome of its competitors in cutting costs. 



EBRD Posts 
Huge Loss 

Bloomberg News 

LONDON — The European 
I Bank for Reconstruction and De- 
f velopment said its first-quarter loss 
widened 10-fold to 7.9 milli on Ecu 
($9.1 million) as expenses rose and 
it increased provisions for projects 
in Albania and Bulgaria. 

“The first quarter at EBRD is 
always difficult,” said Bart le 
Blanc, vice president in charge of 
j- finance at EBRD, which was set up 
in 1991 to help nations across the 
former Eastern bloc convert their 
economies to the free market. 

He said a nearly 300 percent rise 
in expenses and a 70 percent in- 
crease in provisions for possible 
losses in its loan portfolio contrib- 
uted to the loss. 

At the bank’s annual share holders 

meeting, officials said the relative 
success of such countries as Poland, 
Hungary and tbe Czech Republic 
meant that tbe Bank would increase 
its activities in much riskier coun- 
tries such as Bulgaria, Romania and 
some Centra] Asian Republics of tbe 
former Soviet Union. 


Pieter Bouw was at the helm six years. 

Last month, British Airways PLC said 
pretax profit rose 9.4 percent in its latest 
financial year. 

KLM 's fourth-quarter net loss was 98 
million guilders, reversing a net profit of 
8 million guilders, or 5 cents a share, in 
the year-earlier period. 

The airline predicted a “significant” 
improvement in operating earnings this 
year, helped by the reorganization plan 
it has named Focus 2000, by lower fuel 
prices and by economic growth. 

Profit for the year ended in March 
was 236 million guilders, after 547 mil- 
lion guilders a year earlier. 

Excluding a pretax charge of 290 
million guilders, net earnings were 425 
million guilders, or 3.01 guilders a 
share, against 547 million guilders, or 
5.86 guilders a share. 

“They came in better than expec- 
ted,” said Mr. van Geffen, whose es- 
timate for net profit before special items 
was 404 million guilders. “But that’s 
tite past. More important is the future 
outlook, which is rather positive.” 

Thirty-five analysts polled by IBES 
International Inc. estimated KLM*s earn- 
ings for tbe current year at an average of 
4.54 guilders a share. Forecasts ranged 
from 5.60 guilders to 3.97 guilders. 

“We were confronted by a much 
stronger increase in our expenses,’ ’ Mr. 
Bouw said. “This unequivocally shows 
the need for cutbacks.” 

KLM said wages and labor costs rose 
11 percent in the latest year, compared 
with 1995. In tbe fourth quarter they 
rose 10 percent from a year earlier. Fuel 
costs, meanwhile, rose 29 percent year- 
on-year and 27 percent in the fourth 
quaner from a year earlier. 

(Bloomberg. AFX, Reuters) 


Whither Bank of England? 

Governor Denies Its Relevance Is Slipping 


CmpilftJ fy Oar Sn&Fram Oaparttn 

LONDON — The head of the Bank of Eng- 
land, Britain's central bank, denied on Wed- 
nesday it was being stripped of power by the new 
Labour government and promised it would re- 
main active well into tbe next century. 

On Tuesday. Finance Minister Gordon Brown 
announced plans to transfer supervision of Bri- 
tain’s thriving financial services sector to a new- 
beefed-up Securities and Investments Board. 

Currently, the Bank of England is in charge of 
regulating banks but it has presided over a series 
of embarrassing scandals in recent years and 
faced accusations of sleeping on the job. 

The bank’s governor, Eddie George, said Wed- 
nesday that the shakeup that stripped him of 
power to supervise commercial banks came more 
quickly than he would have liked, but be denied 
that lax regulation in several big scandals was to 
blame. 

“I think that's a frankly red herring and 1 don't 
believe that's the factor,” Mr. Georeesaid. hold- 
ing a news conference at the central bank. 

Mr. George said he had had less than 24 houre’ 
notice that Mr. Brown was going to set up a 
super-regulator to monitor banking, insurance 
and financial markets in London. 

He said the important thing would be to ensure 
that the Securities and Investments Board does 
not become a paper-shuffling, bureaucratic 
monolith that stifles entrepreneurial spirit with 
rules designed to protect small, unsophisticated 
investors, he said. 

Mr. Brown took office as chancellor of the 
Exchequer after the Labour Party won a landslide 
election victory on May 1. His first major action 
was to give the Bank of England tbe freedom to 
set interest rates without interference from politi- 
cians, but within two weeks he had also relieved 
the bank of its job supervising other banks. 


Mr. Brown said the unwieldy system whereby 
the Bank of England watches over banks while a 
raft of lesser bodies supervise related industries 
was ripe for overhaul. 

The new all-in-one regulator would be in 
charge of banks, securities firms and insurance 
companies, making it one of the most powerful 
bodies in Britain but leaving the central bank 
stripped of one of its core jobs. 

Mr. George insisted the move made “entirely 
good sense” and was “sensible in its own 
terms’ ' even if be himself would not have backed 
such a change just now. 

“You can skin a cat in all sorts of different 
ways and they all have pros and cons.” he said. 
But he admitted the move bad p r o mpted thoughts 
of resignation and pointedly said the government 
had told him about its plan, not consulted him. 

' ‘Ail sorts of thoughts go through your mind.' ' 
he said wistfully. “I didn't seriously think about 
resigning.” 

Mr. George insisted he was not fazed by the 
changes, saying few other central banks had en- 
joyed his wide-ranging powers, and dismi ssed talk 
of a fiscal striptease being forced upon the bank. 

He said the bank, which by tradition spars with 
government over the levers of economic power, 
looked forward to a ‘‘period of change and 
development” under the Labour government 

Indeed, Mr. George laughed off suggestions 
the bank’s last remaining major powers would 
vanish if and when Britain joined a single Euro- 
pean currency, when national central bank func- 
tions would transfer to a European Union bank. 

But wasn't a slow striptease already under 
way, reporters asked. 

“I don't think you need worry,” Mr. George 
said. “We will still be here in 10 years. I think we 
will still be quite well clothed in 10 years time, 
too. ’ ’ ( Reuters. AP. Bloomberg) 



II Investor’s Europe ii 

Frankfurt 

DAX 

3800 - -- 

London Pi 

ftse 100 . index 0 

4800 * 30 

vis 

\G40 

00 

00 

00— 


mm 


■ 24 

1996 

Exchange 

Amsterttem 



rA’M ““‘D j’F 
1997 1996 

Jndax • 

AEX • 

MAM *“D J'F 
1997 1996 

Vfedhesday P*«v- 
. Close Close •• 
883J2& 787.45 

MAM 

1997 

% 

Changs 

' Bruxseis 

^L-20 •; 

2^47^3 

2^28.00 

+089 

Frankfurt 

DAX 

3^8&0R 



Copenhagen 

■Stock Madoet 

581.24 





mrriHM 


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Oslo 

OBX • 


612.34- ■. 

+L79 

Londan 

ftse toe; . 

4 vB 42 jOO 

4.607 JO 

+079 

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Stock 

560.tt> 

547JS6 


man - 

■MlEfTEL ■. 

..mar 

12435 : 

+0,74 

Paris. ■ 



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+tis 


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atx - : ; . 

1^98.11 

1^70.36 

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SW ■ •• ' ■ 

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3^14^8 

+1.68 


Source: Telekurs 


loKmuKHui) Herald Tribune • 


Very briefly; 


Fraud at Lyonnais: Beyond ‘Huge 9 


Compiled by Omr SnffFmn <-■ 

PARIS — The company set up to sell Credit 
Lyonnais's dubious assets said Wednesday it was 
planning to file new lawsuits against executives of 
Credit Lyonnais's banking units because of 
massive fraud. 

In an internal report made available to news 
organizations, the board of the Consortium de 
Realisation, or CDR, said its investigators had 
uncovered “organized financial fraud” in those 
banks that went on until 1993. 

The document said Credit Lyonnais had been the 
target of “looting” and of “otganized delin- 
quency ’’and commented that “such fraud, at such a 
level, has never occurred in France before.” 

Jean -Michel Raingeard. a spokesman for CDR, 
said it planned to file a dozen lawsuits by mid- June, 
on top of the approximately 60 suits already filed. 


t report sai 

seven of Credit Lyonnais's banking units, and that 
die sums involved were much higher than the 
figures reported so far. Earlier this year, Charles de 
Courson. a member of the National Assembly 
finance committee, estimated the fraud at 5 billion 
francs ($874 million). Tbe chairman of Credit 
Lyonnais, Jean Feyrelevade, said that Mr. de 
Courson 's estimate was vastly exaggerated. 

The CDR declined to disclose the amount al- 
legedly involved, but its report said, “Real figures 
are above those already died, already huge.” A 
CDR official who spoke' on condition of anonymity 
said the fraud totaled nearly 10 billion francs. 

The memorandum said the fraud was concen- 
trated at IBS A, Credit Lyonnais Bank Nederland. 
Altus. SBT Batif. SDBO, SAGA, and Banque 
Colbert. ( Bloomberg , AFP) 


• VEBA AG, a German utility and chemicals company, bought 
a 36.4 percent stake in Degussa AG, a metal and chemical 
company, for 2.9 billion Deutsche marks ($1 .71 billion). 

• Cable & Wireless PLC won its bid to buy 49 percent of 
Panama's state telephone company, INTEL S A, topping a bid 
by GTE Corp. with an offer of $652 million. 
Metallgesellscbaft AG’s first-half pretax profit rose 50 per- 
cent. to 106 million DM. as its restructuring paid off and 
turnover at its plant engineering division boomed. 

• Volkswagen AG’s unit sales rose 1 1.2 percent in the first 
four months of 1997, to 1 A3 million vehicles. 

■ Commerzbank AG plans to build a global equities business 
and hire at least 500 people to staff iL The bank's first-quarter 
operating profit rose 20.5 percent, to 1.05 billion DM, amid 
double -digit growth in commissions and interest income. 

• Italy’s deputy prime minister, Walter Veltroni, said the 

country had already reached the poal of a deficit of 3 percent 
of gross domestic product required for membership in the 
European Single currency. AFX. AP. Bloomberg, Reuters 


Totalis Weighing Iran Mature 

Agence France-Presse 

PARIS — Total S A said Wednesday it was considering a $2 
billion joint venture to develop an I ranian gas field in die Gulf. 

The chairman, Thierry Desmarest, said much progress had 
been made in talks with National Iranian Oil Co. on de- 
veloping the Pars South gas field- He said that if Total went 
ahead, it would do so with other partners. 

Iran said Sunday a $3-5 billion contract had been concluded 
with Total on tbe Pars South field, but Total denied iL 

Total also said it expected first-half operating income to rise 
35 percent, to 6.70 billion francs ($1.17 billion). 


WORLD STOCK MARKETS 


Prices hi bool currencies. 
Telekurs 

High Law dan Pmt. 


High “ Low dote Pre*. 
petrischeamk MSB 9630 9035 97.10 


'Amsterdam 

42 

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AIod Nobel 
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Sosol 5550 5450 54 54 

SWC . • 2145® 214 ZM 214 

Hoar Oats 7550 7X25 7X25 75J25 


Market Closed 

Tbe Singapore stock mar- 
ket was closed Wednesday 
for a holiday. 


London 

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294 

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1B79 

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258W 

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25200 

247® 

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18®S 

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154® 15390 

1629 

1590 

1595 

1635 

19970 T95J0 

197® 

K1 

5® 

552 

565 


323.9C 319.10 32190 319® 

1020 

996 

1IKK 


465.90 450.10 

463 

■71 

msm 

675 

688 

EJ 

2829 

7 / 95 

2810 

2810 


829 

8® 

■ | 

FiTTvl 

307 309® 


715 

699 

713 

EJ 

19590 

190® 

193 

193® 

567 

UA 

462 

453 


9470 93 9370 92.15 

378 360J0 36690 364J0 


SSoPaul ° — ttffiSSS 


Pfd 




870 
77890 
47 JO 
5570 
1570 


BJ5 

77790 

4690 

5470 

1570 


LptfSenkta 

«SsP« 


52571 




UstaSnSpW 


26090 

16X00 

3690 

979 

13799 

15290 

16100 

35590 

3690 

171 

25.10 


56290 
490JSS8 
341 JO 
24790 
15999 
35J0 
975 
13690 
14799 
151.10 
34790 
3650 
1.19 
2460 


8L60 870 

77790 77790 
47.00 4570 
54750 52JD 
1570 1690 
48490 48090 
mm S62J0 
51890 51591 
34990 341 JO 
247 JO 25390 
15999 16299 
atfio asjia 
979 975 

13640 13470 
14890 14850 
157 JO 15390 
34990 34X00 
3690 3670 
170 170 

2460 2450 


Sydney 


All Oirtmrioc: 254370 
Previous: 2S3AJO 

Amcor 

644 

636 

636 

643 

AMZBMng 

619 

7.94 

619 

786 

BHP 

19X1 

19® 

19.15 

1976 


X84 

3® 

183 

679 

Brambles tod. 

23X4 

M/fl 

2X75 

2394 

CBA 

1X92 

IX® 

1183 

1175 

CCAraalB 

14® 

1475 

1493 

147B 

Cotes Myer 

611 

4.99 

6 

607 

Comalco 

7® 

7.10 

7® 

772 

CRA 

21.17 

21® 

21.12 

31.12 

C5R 

4J3 

447 

478 

AM 

Pastes Brew 

2® 

7® 

2J7 

296 

Goodman FM 

172 

170 

171 

171 

KIAushaSa 

12® 

II® 

11.97 

11® 


24J4 

2442 

2449 

24® 

MIMHda; 

NatAastBank 

LB7 

UM 

195 

1® 

1618 

1777 

16TB 

17® 

NOl Muhud Hdg 

1® 

1® 

1® 

1® 

NavsCaip 

SM 

47V 

593 

476 

PadflcDuntop 

3J3 

349 

3® 

3J2 

Pioneer Inn 

4® 

473 

477 

473 

Pub Broadcast 

655 

642 

655 

642 

5f Georpe B-u-.t 

737 

7® 

7® 

7JU 

WMC 

632 

615 

617 

62/ 

wistoacBklng 

WW&daPet 

772 

1093 

7.10 

1675 

7.17 

IMS 

7® 

1094 

WodworOi* 

403 

393 

X96 

4 

Taipei 

Stall Mm lot toif MW® 
PlCVfMC 799675 

Cotaov LKe Ins 

1® 

152 

1® 

1® 


121 

118 

119 

120 

73 

71® 

72 

74® 

117 

115 

115® 

116 

QUno 5taol 

30® 

3610 

3610 

3640 

HstBotk 

119® 116® 

117 

118 

Formosa Pksflc 

65 

64® 

64® 

64 

Hun Nan Bk 

117® 

115 

116 

116 

jaUOonmBk 

71 

69 JO 

76® 

69® 

Mon Yq Plashes 

69® 

66® 

69 

68® 

Shin Kong LKr 
Taiwan 5«nl 

93® 

1® 

92 

101 

93 

105 

92® 

101 


55® 

68 

55 

65® 

55® 

<7® 

46® 

66 

UldWoridChJn 

69 

6IL50 

68® 

6650 


The Trib Index 

Prices as otSMPM. New York time. 

Jan. 1. 1992-100. 

L**d 

Change 

% change 

year to date 

World Index 

168.53 

+0.35 

+0.21 

+11.66 

Regional tnctaxm 
Asra/Podb c 

123.90 

-2.44 

-1.93 

+0.38 

Europe 

176.10 

+1-25 

+0.71 

+9.24 

N. America 

191.44 

+1.35 

+0.71 

+1324 

$. America 

InduatoW Indaxw 

15Z57 

+1.83 

+1.21 

+33^3 

Capital goods 

205.48 

+2.88 

+1.42 

+20^2 

Consumer goods 

188.73 

-0.87 

-0.35 

+1BJ31 

Energy 

195.77 

+1.98 

+1.02 

+14.68 

Finance 

123.17 

-0.32 

-0.26 

+6.78 

Miscellaneous 

168.29 

+1.74 

+1.04 

+4.02 

Paw Materials 

185.19 

+0.08 

+004 

+6.59 

Service 

155.58 

+0.1 1 

+0-07 

+13.30 

Utmes 

142.45 

+0.72 

+031 

-0.70 

The International Hwnht Trixjne World Stock index C tracks the U.S. doSarvahosof 
280 sitomBdonaByirmsaNa stocks from SB countries. For more Mentation, a free 
booklet is arabaua by writing to The Trib todaxIBI Avenue Charles do Gautta. 

92521 NetOy Codex. France. CompOod by Btoomberg News. 

High 

Low Close 

Pie*. 

HI* Law 

□are Pre*. 


Tokyo 

aUmppmAIt 

MOW 
AsaM Bank 


NBfikti 225: 1904298 
PievfHB 2033293 


Montreal 


BO 314777 
Pm t a n 310998 


Bee Met Com 

CdnTtroA 

CdnirtlA 

crnntsvc 

Coz Metro 

GPWertLBoco 

bnareo 

hwoshreGip . 
DihlawCns 
Had Bk Canada 
Power Care 
Power FUn 
QuWwarB 
RogenOnunB 
Royal BkCdo 


4440 43J5 
27.15 2640 
35V5 35 

3411 3410 
18 17M 

28 TP* 
3995 3990 
2790 2740 
1970 19 

1M 1635 
32U 31M 
2995 2995 
2645 25U 

71k 714 

60.10 5955 


4440 4414 

26M 2665 
35 3570 
3410 3M 
1795 18 

27M 28.15 
3990 3914 

27 J5 2745 
19 19U 

1641 1670 

2?t5 358 

2545 2540 
714 7Ya 
SUO 5940 


Seoul 

Doawi 

Daewoo Haavr 

EE* 


73771 
Prevtaos 73467 


96600 91500 
8270 7660 

19700 18800 
16600 16300 
27000 26300 
5700 5380 

388000 370000 
34400 33900 
50500 571 DO 
45200 44000 
65000 63200 
10500 10200 


95900 89500 
8270 7&S* 

19700 19200 
16600 16300 
27000 26J&0 
5400 5780 
380000 370000 
34000 34200 
50000 58000 
45100 44500 
63500 65000 
10300 10300 


OBXhHkoc 6 zx 3 i Stockholm 

Previous 61274 

]2 e AGAB 103J0 10X50 


132 12850 131 JO 


Oslo 

6btf ^ 2 '31 & 

DennoitaceBk 28 27 JO 2790 2790 

ElKen 138 132 137JB 131 

Ha&hndA 46 4SJD 45J0 45J0 Au”"* 


SX 16 tadac 382893 
Pie ■!«■ i .lwijo 


103 103 

106 104 1Q5J0 10150 

224 213 220 214 

346J0 332JB 344 33650 

21450 210 213 309 

30X50 296 3QOJO 294 


To niTR r papers in Belgium 

It’s never beat easier to subscribe and save. 
Just call toll free at 0 800 1 7538. 


m e v rn un Mmawwa 


MriiubkUHw 

MttwUsMMro 

MttufaisMTr 

Mtbul 


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1100 

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770 

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790 

709 

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697 

695 

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1170 

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1200 

3110 

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20® 

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24® 

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775 

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530 

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370 

356 

356 

366 

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701 

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225 

226 

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881 

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573 

576 

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379 

367 

367 

367 

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2239 

2180 

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3160 

3230 

3220 

2220 

21® 

21ft 

2210 

1310 

12/0 

1270 

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1400 

1339 

1340 

1420 

401 

383 

387 

399 

699 

691 

687 

695 

1650 

16® 

1618 

1660 

8S7 

847 

847 

847 

pr+i 

890 

SM 

904 

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1520 

1530 

1610 

1010 

900 

985 

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NUtsul Fudasn 
MKnHTnnt 
MUrotuMfg 
NEC 
Nikon 
Nina Sec 
NbifendD 
Nlpp Express 
Nippon OB 
Nippon SteM 
Nissan Motor 
NKK 

Nam are Sac 
NTT 

NTT Data 

ogpopw 

Osaka Gas 

Hare 

Hahn 

5aKuraBk 

Sankyo 

SanwaBank 

SanroElec 

Secoen 

SetauRW 

SekisuICnem 

SektsalHane 

Saven-Elevea 

USSai EJ Pwr 

Shbntzu 

ShBt-tisuCh 

ShUddo 

Btt“ 

Sony 

Sumttamo 

SuntanoBk 

SureBOiem 

SuretknoElec 

Sunfl Metal 

Swrtt Trust 

TaUhoPtiarai 

TakedaChera 

TDK 

Tohota/BPwr 
Tokal Bank 
Takio Marine 
ToWoElPwr 
Tokyo Etodron 
Tokyo Gas 
TokyuCoip. 
Toner 

ToppaiPiW 
” _ tlnd 


ToshOT 
Toyo That 
Toyota Motor 
YoaianoucM 
ax IMbi xhOOQ 


1490 

839 

4660 

1590 

1840 

710 

87.SJ 

90S 

643 

3W 

746 

257 

1430 

IWUta 

43700 

760 

306 

1470 

10400 

695 

:M$a 

1440 

499 


1240 

1250 

9050 

1610 

2003 

711 

2610 

1700 

1160 

8190 

9710 

1020 

1580 

489 

1840 

304 

1070 

3120 

2980 

8640 

2810 

970 

1«0 

2280 

4910 

321 

713 

1430 

1680 

812 

727 

3160 

866 

3570 

2860 


1430 

808 

4360 

155D 

1790 

683 

8670 

945 

629 

347 

721 

247 

1380 

ION* 

4190b 

730 

300 

1410 

10100 

675 

3500 

1360 

490 

7930 

6050 

1210 

1210 

1540 

I960 

685 

1630 

1150 

7950 

9500 

TO 

1550 

480 

1790 

296 

1030 

29« 

2910 

8570 

1990 

956 

1430 

22® 

4680 

309 

706 
1380 
1630 

798 

707 
3100 

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1450 1490 
819 840 

4360 4700 

ISO 1590 
1800 1850 

691 718 

8690 87® 

957 974 

62 9 634 
349 358 

728 749 

247 256 

1390 1410 

TOtOb ltfittb 
4190b 425CS 
722 758 

302 302 

1430 1450 

10100 1(000 
675 695 

3570 3600 

1390 1430 

491 500 

8090 8250 

6050 6280 
1210 1210 
1220 12® 
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1560 1610 
19611 1980 

691 70S 

2560 2630 

1650 1720 

USD 1150 
7950 0310 

9550 9730 

993 1000 
1570 1600 

480 486 

1M 1830 
297 304 

10X 1070 

29® 3130 

2940 2570 

8590 8900 
2000 1990 

958 980 

1430 1450 

2250 2230 

4680 4890 

319 308 

700 712 

1380 1430 

16® 1660 
805 790 

70B 721 

3120 3010 

826 060 
3®0 3580 

2800 2860 


NawbridpeNel 
Norandolnc 
NofQM Enagy 


Nan 

Onex 

PotroCdii m 


SSKa 

Stone Outsold 
Surcor 

Talfsenan Eny 

TackB 

Totogtabe 

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Thomson 

TorDomBank 

Transano 

TransCda Pipe 

TiWMkFW 

TrtrecHdn 

TVXGoId 

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2990 
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32.15 
32M 
11170 
11.90 
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2970 2995 
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109 110* 
1190 1190 
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15.05 1595 
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3053 3030 
4390 4395 
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1595 15.95 
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2990 29.95 
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ATX tadfec 129011 
Previous: IZTBTt 


Boahter^lddah 9® 918 927 987J0 

CwmooslPfd 519 51475 516 515 

EA-G*neroJI 3051 3035 3045 3531 

g w . . . 1685 16191669.10 1626 

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OMV 16061528.10157480 1535 

OostElekJrii B6475 B3H75 061 861 

VAShrtll 55055 Ol 54B SI 

VAT«1 206670 2003 2055 MOO 

WonertwgBnu 2455 2400 2425 2391 


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AtoeriaEnaivy 

AtamAkim 

AndenonExpi 

BkMortoprt 

BkNavoScofln 

Barrfck Gold 

BCE 

BC Telecomm 
Btocftere Phonn 


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PrevtMH.-62CB.14 

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Wellington kzse^ombb 22967a 

Previous: 229579 

AhNZoaldB 473 432 473 471 

Brtaririmir 175 174 174 174 

Cmw HoU ofll 129 375 378 127 

grtdjOiBWB X99 198 198 199 

FMChOi Eny 464 458 458 495 

Retch Oi Font 1.92 171 192 191 

FVWdiOi Paper XI 8 115 X16 116 

Uon Nalhcrn 392 3J6 162 156 

Telecom NZ 672 670 672 670 

WbonHoriiin 1190 1190 1190 1195 


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L-oniio 






P3f* 







INTERNATfOISAL HERALD TRIBUNE, THURSDAY, MAY 22, 1997 


RAGE 15 


ASIA/PACIFIC 


-fjho, irman Kim 
Sets Daewoo on 
jA World Course 


L Bloomberg News 

bf dressshMs F Kii, n w 1 w j^oniy one pair 
ciuxms ^ “■ 

_Tne 60-year-old chairman of Daewoo 



out nucS^e h ^ 

^ 10 ft"** “d 

iS n<H kn ° Wn for his 

“***“ wa y «> teU the chairman has 
( ^ly two summer suits is by looking at his 
gante^ an old, shiny pair that has been 

often ’” ^ Kim Yong 
Sub, Daewoo s vice president B 

' ™ P 3 *^ are well-traveled. Mr. Kim 

SS^JS T ? 8 ', 290 "■» a y<=" on the 
Toad, i»rt of his dnve to make Daewoo 
34otor Co. a world l ead er. 

JC-ast year, Mr. Kim outbid his former 
t. General Motors Corp., to buy the 
state automaker, Fabryka Sam- 
V . — ™ Clsobowych, or FSO, by prom- 
ising Warsaw that Daewoo would invest 
$ 1.1 billion and retain all 21,000 eraplov- 
■ees for at least three years. 

Mr. Kim has similar plans for Ukraine’s 

^ate car company, Autozaz. On Wednes- 
jday, a company spokesman said Daewoo 
;may pass up a joint takeover bid with GM 
and go it alone. GM owned half of Daewoo 
fMotor until 1992. 

• The Ukraine bid ties in with Daewoo’s 
•plan to become one of the world’s top 10 
•automakers by 2000 with an annual pro- 
duction capacity of 2.5 million vehicles, 
•equivalent to that of Chrysler Corp. 

• Mr. Kim also is willing to laugh at his 
; ambitions. In Britain, Daewoo marirpts its 
iNexia subcompact as a product of “The 



Pa Jtape/Ttac Anodnri Pnen 

MANILA TALKS — Li Lanqing, deputy prime minister of China, heading 
into Pacific Basin Economic Council talks Wednesday on regional issues. 


U.S. Firm Beats 
Investment Ban 
On Burma Deals 


Investor’s Asia 


Hong Kong 
Hang Seng 

14500 — — 


Singapore 
Straits Times 


By Christopher Johnston 

Special to the Herald Tribune 



14000—— 

13500, rt “ 


12000 q-j - F -tf K uf 


telephone company of Burma — just 
signing of a U.S. ban < 


Biggest Car Company You’ve Never 
Heard Of.” Daewoo is the youngest and 
smallest of (he top four conglomerates, or 
chaebol, which between them account for 
half of South Korea's exports. 

In 1967. Mr. Kim borrowed 5 million 
won ($5,600 in today’s currency) to set up a 


textiles trading company with three people. 
“ ‘ “ U billion. 


Today, Daewoo has sales of $ 68 . 


lay, L 

220,000 employees, 31 domestic compa- 


nies and 275 overseas subsidiaries. 

Now Mr. Kim has set his sights on the 
world auto market. Daewoo has more than 
100 foreign projects valued at $2.7 billion. 
Another >2 billion in investments are in the 
pipeline. 

Money, he says, is no object He said he 
always enters with little money and bor- 
rows primarily from local financial compa- 
nies at favorable rates. 

Daewoo has acquired a siring of car 
factories in Eastern Europe. It is also build- 
ing assembly lines in India, Vietnam and 
Uzbekistan. 

It’s a risky strategy. "Kim succeeded in 
penetrating potential markets before any- 


one else did, but that doesn’t mean he’s 
going to make money," said Yang Dong 
Ki, an auto analyst at Dongbang Peregrine 
Securities Co. 

Daewoo executives concede that it is a 
gamble. "We have no backup plan for a 
failure scenario," said the Daewoo Motor 
chairman, Kim Tae Goo. "It’s a case of all 
or nothing." 

If the gambit fails, it could bring down 
the group. Some analysts believe a slipup 
might send Daewoo the way of Hanbo 
Group and Sammi Group, two chaebol that 
collapsed this year under a combined $ 8.2 
billion of debt 

Though Mr. Kim owns less than 2 per- 
cent of Daewoo — mostly because be in- 
sists on remaining a manager rather titan an 
owner — his authority is paramount. 

"Chairman Kim who makes the de- 
cisions around here,” said the company’s 
vice president, Kim Yong Sub. 

"Every time we tried to stop him from 
making investments where there seemed no 
hope, he went on to prove us wrong. I have 
complete faith in him.” 


fToyota’s Profit Rises but Misses Expectations 


CempatdbyOrnSnffFnmDdpaeha 

; TOKYO — Record sales at 
Aame and abroad sent Toyota 
•Motor Corp.’s earnings 50 per- 
Y.cent higher in the year ended 
’-March 31, Japan’s top auto- 
maker said Wednesday. 

- The stronger dollar helped 
•lift die earnings of exporters 
'-such as Toyota, which receive 
pnore yen for their dollars 
-earned abroad as a result 
" But analysts said results fell 
rsbort of expectations. "Every- 
■body knew they were going to 


have great earnings,” said 
Steve Volkmann, an auto ana- 
lyst at Morgan Stanley Japan in 
Tokyo. "Expectations got 
ahead of reality. If there ever 
was a year fora blowout report, 
it was this year.” 

Toyota earned 385.9 billion 
yen ($3.43 billion), up from 
256.9 billion yen for the year 
ended March 31, 1996. 

Gross revenue rose 14 per- 
cent to a record 12 J 2 trillion yen. 
Toyota’s worldwide vehicle 
sales rose 9.9 percent to 4 5 


million 

Iwao Isom ura. deputy chair- 
man of Toyota Motor Corp., 
told reporters dial he did not 
expect sales to continue to rise 
this year. 

Toyota attributed 240 billion 
yen of its naming* to die ben- 
efits of the weak yen. Cost-cut- 
ting added a further 1 10 billion 
yen, it said. 

Vehicle sales in Japan 
jumped 7.7 percent during the 
year, to 23. million, while over- 
seas sales rose 12 percent to 23 


million. U3. sales figures were 
available oily for the 1996 cal- 
endar year, when they totaled 
1.1 miQion. the best ever. 

In the United States, Toyota 
spent 143 billion yen on a plant 
in In diana that will start pro- 


ducing T-100 pickup trucks by 


the end of 199? 

Expansion of a Kentucky 
plant for a new minivan took 
73.3 billion yen, and 43.4 bil- 
lion yen went into expanding 
Toyota’s plant in Cambridge, 
Ontario. (AP, Bloomberg) 


A U3. telecommunications equipment company 
has sealed a $250 million contract with the national 

before the 
i on farther foreign investment in 

the country. 

InterDigital Communications Corp. said that it bad 
concluded a contract with Myanmar Posts & Tele- 
communications to provide equipment for a wireless 
local telephone system. Myanmar is the military 
government’s name for Burma. 

Under the terms of the contract, details of which 
were released last week. InterDigital will manu- 
facture the equipment in the United States and then 
ship it to Burma for assembly. 

The contract also calls for technology transfer and 
the establishment of a joint venture in Burma between 
InterDigital and MPT for the local manufacturing of 
the systems as well as another InterDigital wireless 
technology. 

The company, based in King of Prussia, 
Pennsylvania, said the order ^ was its largest to date and 
was subject to the two parties "finalizing financing 
arrangements, the joint venture agreement, certain 
pricing, payment and other terms. ’ * 

The investment ban was announced by Secretary of 
State Madeleine Albright on April 22 and signed by 
President Bill Clinton on Tuesday. Tbe United States 
said it announced tbe sanctions because of Burma's 
increased repression of its democracy movement. Mr. 
Clinton also accused Burma of being the world’s 
leading {roducer of opium and heroin. 

A white House spokesman declined to comment 
on the InterDigital contract, but he said that because 
the ban was not in effect until it was signed, in 
principle any deals concluded before tbe signing 
could proceed. 

An InterDigital representative credited "a real close 
friend" in the U.S. government, close ties to the 

national phone co mpany m d an listing stake in PiiiTpa 
with landing the contract. She would not elaborate on 
the identity or the positiod of the U.S. official. 

She also said the manufacturing facility would 
produce phone systems for local consumption, not for 
export. "It’s not an investment in Myanmar," the 
representative said. "It’s really more of a sale to 
Myanmar.” 

"This is the height of chutzpah," said Maureen 
Aung-Th win, director of the B urma Project, a b uman- 
rights organization in New York. "This new means of 
communication will not help the ordinary Burmese 
citizen but those who are beyond the law — tbe 
military elite and its supporters.” 

Human-rights organizations have accused tbe 
Burmese military government of using forced labor in 
its joint ventures with foreign companies, and pres- 
sure from activists nas caused a number of U.S. 
companies, including Levi Strauss and PepsiCo Inc., 
to pull their investment out of the country. 

The InterDigital representative said the company 
had thought about the possibility of protests but said 
InterDigital was "just thrilled to have this type of 
order and to be selling equipment into Mynamar." 


1997 

Index 


1950 0 T J F ~M A M 1 c 

1996 


1997 


O J F M A M- 
1996 1997 


Wednesday Prav. 
Close Close. 


% 


Hong Kong 

Hang Seng 

1A23&S2 

1423820 


Sfagapore 

Straits Times 

Closed 

2.05329 

+0.4$ 

Sydney . 

ABOnfinaries 

2£43£0 

2^3170 

•2.41 

Tokyo 

N*fcet225 

1934138 20,332.83 


Kuate Lumpur Composite 

dosed 

1,058.62 

4^3t 

Bangkok 

SET. 

596.19 

577.10 

*04? 

Seoul 

Composite index 

737.71 

734.67 ■ 

+0^3 

Taipei 

Stock Marker index BJQS2JBB 

7.986.75 

+1.58 

Manila 

PSE 

£538.97 

2,49828; 

•raid 

m ~ i . 

Jakarta 

Composite Index 

654.09 

65223 - 

+0.04 

Woffington 

NZ5E-40 

2^9620 

229539- 

- 0.88 

Bombay 

.Sensitive Index 

3,735.01 

3,768.30 : 


Same: Tetekw s 


ImrmjiKHul Herald Tribune 

Very briefly: 


• T hailan d’s cabinet conditionally agreed to allow the Thai 
subsidiary of Hopewell Holdings Ltd. of Hong Kong to alter 
its contract to build a long-delayed road-rail transit system in 
Bangkok, a top government official said. The work must be 
finished by December 1998. 


• PT Lippo Bank’s first-quarter net profit rose 44 percent as 
an expanded loan portfolio helped increase interest income. 
Net profit was 39.6 billion rupiah ($16.4 million), up from 
27.46 billion rupiah a year earlier. Income from operations 
rose 51 percent, to 60.8 billion rupiah. 

• Daihatsu Motor Co. said the most appropriate dollar ex- 
change rate for its business would be about 1 15 yen. "About 
1 15 is good for us," the company’s vice president. Hajime 
Fujii. said. "We want currencies to stabilize." 


• Deere & Co. signed an agreement for a $29.9 million 
combine harvester joint venture in northeastern China, the 
official Xinhua news agency said. 


• Korean Air Ltd. is talking to "four or five” airlines about 
a global cargo alliance, KAL said. It declined to identify the 
potential partners. AFP. Bloomberg. Reuters 


Japan Stocks Take a Tumble 


CatoUaibyO^Si&FnmiDopcoiia 

TOKYO — Japanese stock prices skidded Wednesday, 
registering their biggest one-day drop in two months, cm 
concern that the dollar’s three- week slide against the yen may 
hurt earnings of exporters. 

The benchmark Nikkei 225 stock average fell 490.85 
points, or 2.41 percent, to 1 9,841 .98, its biggest one-day drop 
since March 24. 

Sony Corp.. with exports comprising 67 percent of sales, 
paced the decline, falling 180 yen to 9350 ($84.85). 

Selling by foreign investors was seen all day, especially in 


international blue chips. 


( Bloomberg . AFX, AFP) 



a ” ’ 



id 



es 


By Sandra Sugawara 

Washington Post Service 


-TOKYO — Thailand has been 
die biggest disappointment in 
Asia for foreign investors in re- 


cent times, and they have aban- 
: market ii 


doned the stock market in droves. 

Now many are awaiting news 
from the Bank of Thailand this 
month to see whether the time is 
coming to get back in. 

"I genuinely believe that the 
only thing that is going to get the 
serious money back into the stock 
market in Thailand is going to be a 
pickup in exports, because we’re 
still an export-driven economy," 
a Bangkok-based trader for ING 
Barings said. 

When that will happen is tbe big 
question. 

One encouraging sign: Exports 
in March, as calculated by tbe 
Thai customs department, rose at . __ 

7.4 percent from March 1996, the largest jump in 13 

months, according to ING Barings. 

Other reports have put the March growth even higher, 
although Pridi Boonyoong, director of the customs de- 
partment of the Finance Ministry, said calculations were not 

C °^?amystery,’ ’ one trader said of tfaesigns of recovery 
in exports. "We weren’t expecting this^ But I Pm .relatively 
excited by this. If it really is a trend, then it s happening 

a 5.1 percent 

January 1 was followed by a 5-5 percent drop m FeWry 
Srivan Pietersz, a Bangkok-based strategist with Capital 
SSa&SSlties PuTsaid it was more likely that, things 
would get worse before they got better. 


“The possibility of a further 

Bangkok Seeks Rate Cut 

he expected Thailand's bad-loan 
Agence France-Presse crisis to worsen and interest rates 

BANGKOK — The finance minister said to remain high- He also said the 
Wednesday that he wanted interest rates cut to 
bolster Thailand’s flagging economy, and 
sources in the banking industry said a cut in the 
discount rate was in foe works. 

But foe director of the office of the governor 


9LUlUlLI«^ltU IIB/ LUUUiWJU 

Finance Minister Amnuay Viravan said later 
in a news briefing: "I cannot tell when and bow 
the Bank of Thailand wifi reduce the discount 
rate, but I want it to reduce it very quickly." 

A source in tbe banking industry said Wed- 
nesday that tiie discount rate would drop to 93 
percent from 103 percent. Stock-exchange 
sources said tiiey bad beard the rate could be cut 
to 53 percent. 


Thai central bank must keep rates 
up to maintain the currency’s re- 
lationship to the U.S. dollar. 

Only a couple of years ago. Thai- 
land was seen as a shining example 
of an export-driven, high-growth 
Asian "tiger” economy. 

Bur now, as it struggles through 
its worst financial crisis in a decade, 
it is more often described as a mod- 
el of what can go wrong when an 
Asian country is beset by blind 
growth and corrupt politics and is 
too dependent on exports. 

During tiie late 1980s and early 
1990s, foreign investment flooded 
into Thailand, and Thai banks 
raced to pour money into sky- 
luxury condominiums. 


scrapers 

steel factories and golf courses. 

But the country soon learned that rapid growth did not 
always mean higher profits. Experts began falling last 
spring. Prices for computer electronics fell, and textile and 
footwear exports increasingly lost out to products from 
such countries as Vietnam and Indonesia, where labor costs 
were lower. 

The Thai stock market has fallen more than 47 percent 
from its 52-week high. In March, foe Stock Exchange of 
Thailand stormed investors by halting all trading in bank a n d 


financial shares for one day. It acted to prever : a panic after 

. finan cial com pan y. Finance 


news that Thailand’s biggest — t — j. 

One FLC, had had to be rescued by a Thai bank and that foe 
government had ordered other financial institutions to raise 
capital to protect themselves from rivers of bad debt 




^FOXHOLE: An Obsessed Money Manager Stalks the Wily Fed 

. ^ i u i «« ««vtnnn 


£ Continued from Page H 

‘‘over a flaw in Intel’s Pentium 
ip, Mr. Cramer "doubled 


meaning be doubled 
-the amount of money h e had 
-invested when the price start- 
ed dropping sharply srfter foe 
•■flaw was discovered. Intel 
-continued to drop, so be 
"tripled down. Then he quad- 
rupled down — and prayed 
^hat he was right 
> "At one point I had 60 per- 
cent of my assets in Intel, he 

.says. ‘T jusr fodn’t believe 
■ thin flaw could matter tnat 
‘much. I mean, I trade cur- 
.rencies using a Pentium- 

hxiwered computer, and tins 
^flaw was undetectable. Alone 
r point I thought. ‘Oh, my God. 
Jhave to sell everything be- 
cause all I have is Intel. 

- HiS conviction served him 
-well. The stock has more than 
-quintupled since then,. » 
#$161. That same conviction, 
. though, blinded him to prob- 
: lems at Rexon, a maker of 
I backup computer tapes that 
■g^ trounced when 3M came 


out with new tape technology. 
Tbe company filed for bank- 
ruptcy protection in Septem- 
ber 1995 with Mr. Cramer as 
its largest shareholder. He 
lost $8 million. 

Lest he forget, on one of me 

many yellow stick-on notes 
dotting his trading screens are 
the wortls: £ 4 Discipline is irore 

important than conviction.” 

Mr. Cramer started trading 
; — with fictitious money — in 
die second grade, keeping a 


meticulous journal of every 
trade. By law school he had 
become so entranced with 
watching the running tape of 
stock trades on television that 
he would miss classes. 

"I think I can figure it 
out," he toldhimself as he sat, 
transfixed. In 1984, be landed 


a sales job at Goldman. Sachs 
>. He 


& Co. He worked there until 
January 1987, when he struck 
out os his own. 

He got office space and a 


$500,000 investment from 
Michael Steinhardt, who at 
tiie time ran one of the most 
influential hedge funds on 
Wall Street. Mr. Cramer met 
the woman who would be- 
come his wife and trading 
partner at Steinhanft’s.^ a 
trader with uncanny intuition 
about market moves. She 
called him one week before 
the market plunged in 1987, 
for example, and urged him to 
sell everything. He did. 


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PAGE 18 


Captain Bodgit Retired 


house RACING Captain Bodgir, 
who finished secoiKl in the Kentucky 
Derby and thiid in the Preakness, 
was reared from racing Wednesday 
with an injury in his Jeft front leg. 

Barry Irwin, president of the 
Team Valor syndicate, which owns 
the horse, called th e_ injury, a 


He said trainer Gary Capuano 
“noticed some swelling 1 ' two days 
after the Preakness last Sat- 
urday. (AP) 


Lewis Attacks ‘Cover Up’ 

Olympics Carl Lewis accused 
athletics authorities of trying to 


hush up the abuse of performance- 
enhancing drugs in U.S. sport after 
it emerged Wednesday that two 
more American athletes had been 
caught doping. 

A few days after a doping scan- 
dal involving leading American 
athletes Sandra Farmer-Pamck and 
-Mary-Slaney. athletics sources said 
two other American athletes had 
tested positive for banned drugs. 

“There is no question in my mind 
that they have more knowledge 
about the drug problem than they are 
telling the public," Lewis said.(APj 

• The International Olympic 
Committee added women's skeet 
and trap shooting and restored 
women's duet synchronized swim- 
ming to the schedule for the 2000 
Olympics in Sydney. 

“The main reason was to give 
another opportunity to promote 
women's sports, '* said Francois 
Garrard of the International 
Olympic Committee. (AP) 


Dominator Elected MVP 


ICE HOCKEY Buffalo Sabres' 
goalie Dominick Hasek was selec- 
ted the National Hockey League’s 
Player of the Year by the weekly 
magazine The Sporting News on 
Wednesday. 

Bryan Berard, a defenseman 
with the New York Islanders won 
Rookie of the Year and Ken Hitch- 
cock of the Dallas Stars won Coach 
of the Year. 

John Muckier was selected Ex- 
ecutive of the Year. He was fired 
last week by the Buffalo Sabres. 

• The Anaheim Mighty Ducks 
did not renew the contract of coach 
Ron Wilson. Wilson is the only 
coach Anaheim has had since it 
entered the NHL in 1993. This sea- 
son he guided the team to its first 
winning record and their first Stan- 
ley Cup playoff appearance. 

The team, which is owned by 
Walt Disney, cited “philosophical 
differences." (AP) 


“SaeedBreaks Record 


cricket Pakistan opener Saeed 
Anwar smashed the record for the 
highest individual score in one-day 
internationals Wednesday. He hit 
194 as Pakistan beat India by 35 
runs in Madras in the Independence 
Cup. 

Anwar powered Pakistan to an 
imposing 327 runs for five wickets 
from its 50 overs. India made 292 in 
reply, led by Rahul Dravid who 
made 107. Pakistan will play Sri 
Lanka in the final of the four team 
tournament. (Reuters) 



BASEBALL 


1 Hf.iilJUUTT: 




Sports 


World Roundup 



Tonkov Tightens Hold on Giro d ’Italia 


Reuters 

TERMINILLO, Italy — Pavel 
Tonkov overcame the challenge of a 
fellow Russian. Yevgeni Benin, on 
Wednesday and tightened his grip on 
the Giro d’ltalia. 

In the final thrust for the finish on the 
1,675-meter (1, 047-feet) Terminillo 
mountain. Tonkov, of the Mapei team 
and the 1996 Giro victor, outsprinted 
Luc Leblanc of France to gain the max- 
imum time deduction of 12 seconds with 
several rivals strong out in his wake. 

Leblanc's second placing ahead of 
Marco Pantani of Italy was worth eight 
seconds, and the Frenchman moved up 
to second overall, 41 seconds behind 
Tonkov. 

Berzin began the day in second place, 
one second behind Tonkov, but cracked 
in the final 1 1 kilometers and trailed in 5 
minutes 22 seconds behind his coun- 


tryman. 


Berzin, who won the Giro in 1994, 
said he failed to eat enough to cope with 
the demands of the 215-kflometer fifth 
stage from Arezzo. 

“All of a sudden I felt without 
strength,’ ’ he said * 4 It's a bad defeat but 
I'm not giving up." 

He was not the only contender to 
suffer, as Tonkov ruled a leading group, 
reduced to seven by the constant skir- 
mishing, for the final four kilometers of 
the first major climb in this Giro. 

“I just wanted to control the race," 
said Tonkov, who is competing with a 
bandaged left wrist because of a spill 
last month. 4 ‘If I had not had the leader's 
pink jersey I would have attacked more 
often on the Terminillo climb. My one 
fear is the Dolomite mountain climbs in 
die last few days of the race, especially 
as my team wifi have to work a lot." 

Marco Pantani of Italy finished third 
and climbed to fifth overall 


Lindros Lifts Philadelphia, 6-3 


Flyers’ Star Follows Gretzky’s Hat Trick "With One of His Own 


By Joe Lapointe 

New York Tunes Service 


Rangers called a right-wrist injury in 
Game 2, played a full complement of 


NEW YORK — Wayne Gretzky, the 
Great One, had scored a hat-trick in 
Game 2 of the Eastern Conference fi- 
nals. Eric Lindros, the Next One, replied 
with one of his own in Game 3. 

Lindros 's hat trick paced the Phil- 
adelphia Flyers to a 6-3 victory over the 
New York Rangers on Tuesday night at 
Madison Square Garden, giving Phil- 
adelphia a 2- 1 lead in the four-of-se ven- 
game series. 

Gretzky also did his part Tuesday 
night. He scored a goal to tie the game at 
3-3 at 14 minutes 2 1 seconds of the third 
period. He also assisted on one of two 
goals by Russ CourtnalL 

But just 38 seconds after Gretzky tied 
the score, Trent Klatt put Philadelphia 
ahead to stay. “It was a bit of a yo-yo- 
style game," Lindros said, referring to 
the two leads the Flyers squandered. “I 
don't think anyone felt too much in 
control." 

Having already lost three checking 
forwards to injury in the playoffs, the 
Rangers played without one of their 
regular defensemen, Aleksandr Kar- 
povtsev, who left the team to travel to 
Russia after learning of the death of his 
mother. 

Brian Leetch, who sustained what die 


Game 2, played a mil complement of 
minutes and skated well. 

But Colin Campbell, the Rangers’ 
coach, admitted that Leetch — with 
only two shots on goal — was not at full 


NHL PlATOFFf 


strength. “That's not Brian Leetch to- 
night,’ ’ Campbell said, adding that Kar- 
povtsev's absence had forced him to use 
Leetch more than planned. 

Campbell said he was not happy with 


the goal tending of Mike Richter, who 
failed to stop Rod B rind 'Amour on a 


failed to stop Rod B rind 'Amour on a 
breakaway for the Flyers' fifth goal, 
which put the game out of reach. “I 
think Mike will bounce back strong," 


Campbell said. “It’s too early to jump 
off the Mike Richter bandwagon." 


off the Mike Richter bandwagon." 

Both coaches noted the loose, scram- 
bling style of play. “We got sloppy." 
Campbell said. “We opened up too 
soon." 

The Flyers outshot the Rangers by 
12-5 in tire first period and held a 2-0 
lead at the first intermission. Lindros 
scored the first goal of the game, which 
was also his first of the series and sev- 
enth of the playoffs, at 7:43. Lindros 
beat Richter with a wraparound shot that 
barely crossed the goal line before 
Richter swept it away. 


Play continued for 28 seconds until a 
whistle for a penalty against Jeff Beuk- 
eboom — for roughing Philadelphia's 
John LeClair with a Leaping body check 
into the boards — stopped play, the off- 
ice officials then reviewed the videotape 
of Lindros ’s shot and awarded him the 
goal. The penalty to Beukeboom was 
nullified. 

The Flyers made it 2-0 at 12:03 when 
Peter Svoboda scored on a long shot that 
got past Richter after the goalie had lost 
his stick. 

Richter protested to Bill McCreary, 
the referee, that the stick was pushed 
away from him by Dainius Ziibrus, a 
Flyers* rookie. Zubrus and Lindros had 
the assists. 

The second period bad no scoring and 
play was much tighter. The Rangers 
gained a big advantage with 2:53 re- 
maining in the period when Michel Petit 
of Philadelphia took a double minor for 
high-sticking Dallas Eakms, giving the 
Rangers a four-minute power play. The 
Flyers survived until the end of the 
period, but there still were 66 seconds 
remaining in the power play as the third 
period began. 

The Rangers took advantage, as 
Courtnall scored at the 43 -second mark 
of the third period. Courtnall was set up 
by Gretzky in front of Ron Hextall, the 
Philadelphia goalie. 


gggsigjj 




p 


Us W 


THURSDAY, MAY 22, 1997 




Ailing Sampras Faces 
Strain of French Clay J 

But No. 1 Brushes Off Problems ; 


v?* 

<tr* — 


C-AtK- 7 ~ . J. \ 


By Ian Thomsen 

' International Herald Tribune 


ItebeccM MidenffHe Awrmrri ftew 


PINPOINT ACCURACY — Jose Maria Olazabal practicing Wednesday at Wentworth, England, with the help 
of an acupuncture dip in his ear. The dip is intended to speed his recovery from a herniated disc in his back. 


Pantani, who rides for Mercatone 
Uno, had been out of action for 16 
months after injuring his leg in a crash. 
He is now 1:31 behind Tonkov and has 
many opportunities to show his old 
climbing power before the Milan finale 
on June 8. 

As the field splintered, the Italian 
Enrico Zaina, last year's runner-up, and 
the Russian Piotr Ugromov, fourth and 
third in the last two Giros, lost more than 
two and a half minutes on Tonkov. 

Mario CipoIIini, who had won three 
stages In the previous four days, fin- 
ished almost 16 minutes in arrears at 
Terminillo, but his Saeco teammate. 
Ivan Gotti, a noted climber, moved into 
a challenging third overall, one minute 
seven seconds behind. 

But his team feUedin its appeal of the 
elimination of Giah Matteo Fagniof 
from Tuesday’s stage for dangerous rid- 
ing. 


Pete Sampras’s withdrawal from a 
tournament in Duesseldorf means that 
the world No. 1 will enter the least 
predictable French Open next week 
without so much as a warm-up victory 
on clay this season. 

More worrisome for Sampras is the 
left-thigfa strain that he suffered 
Monday in the third set of his opening 
match at the World Team Cup against 
Australia’s Mark. Philippoussis. The 
slow clay at Roland Garros has always 
pushed Sampras to his limits. Last year, 
after a succession of draining five-set 
matches, he was cast oui of the semifinal 
by the eventual champion, Yevgeni 
Kafelnikov of Russia. Doubts over 
Sampras's health will obviously in- 
crease the odds a gains t his completing 
his collection of the four major titles, a 
Grand S lam last accomplished in men's 
tennis by Rod Laver in the 1960s. The 
25 -year-old Sampras has won four U.S. 
Opens, three Wimbledon champion- 
ships and two Australian Opens. 

Sampras was replaced Wednesday by 
his American teammate Alex O’Brien, a 
doubles specialist. 

“It's a pretty significant injury.” 
Sampras said Monday. “But the good 
news, if there is any, is that it's not a 
pull. It's a strain. There’s time before 
the French and hopefully I can get it 
cleared up and be ready to go.'* 

Sampras bad to reorganize his sched- 
ule after suffering a wrist injury this 
spring. In his three tournaments since 
coming to Europe last month, he lost 
twice m the first round — to Magnus 
Larsson of Sweden and to fellow Amer- 
ican Jim Courier — and then forfeited to 
Philippoussis. However, Sampras has 
grown used to dealing with unusual 
circumstances on clay, his least favorite 
surface. 

“I don’t think we should read too 
much into my defeats." Sampras said. 
“Last year I hardly had any clay . court 
tennis behind me when I came to Paris 
but I still reached the semifinals." 

Sampras isn't the only contender in 
doubt Kafelnikov, seeded No. 3 at Ro- 
land Garros, has lost his last two. 
matches in straight sets, most receotlynr " 
the first round this week at St Poelton, 
Austria, in less than an hour against 
Dominik Hrbaty of Slovakia. 


No. 5 Thomas Muster, the champion 
at Roland<3arros4wo years ago, and NaJ 
6 Richard Krajicek, who knocked out 
Sampras cm his way to winning 
Wimbledon last summer, have also 
been struggling. 

Andre Agassi, who would have been 
unseeded, his American compatriot 
Todd Martin and Boris Becker have all 
withdrawn from Roland Garros. f* 

The women's tournament looks erven 
more open to a surprise champion. No. 1 
Martina Hingis has been hurrying tB 
rehabilitate her knee after tumbling? 
from a friend’s horse April 21. The lw 
year-old Swiss is unbeaten this year, bed 
her opening round match at Roland Gar 1 
ros will be her first on clay this season. 
Hingis started training seriously onl f 
this week and has yet to receive clear? 
ance from her doctor to play in the two 2 
week tournament. 

No. 2 Steffi Grafs ability to win her 
sixth French Open and 22d Grand Slam 
title is also in question following hex 
recent return from a knee injury. Her 
recent comeback included a remarkable 
6-0, 6-1 loss to Amanda Coetzer of 
South Africa. If the top three are vuf 
nerable — Hingis, Graf and No. 3 Mbn^ 
ica Seles, who has yet to recover her old 
form — then there’s no telling who will 
win this year. 

• Je nnif er Capriati pulled out of the 
French Open with an ankle injury on 
Wednesday, Reuters reported from Par- 


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I Seles Advances in Madrid 


Seles routed Spain’s Maria Antonia 
Sanchez, 6-0, 6-1, Wednesday to reach 
the third round at the Yellow Pages 
Open in Madrid. -A. 

In other pre-French Open tourna- 
ments, rain intefered. 

In Duesseldorf Sasa Hfrszon and Gor- 
an Ivanisevic of Croatia beat Daniel 
Vacek and Martin Damm of the Czech 
Republic, 5-7, 6-4, 6-3, in a match 
stopped on Tuesday because of rain. Rain 
delayed play again Wednesday, but Ivan- 
isevic beat Michael Chang, 6-2, 2-6, 6-3; 
to give Croatia a 1 -0 lead over the United 
States which fought back to win 2-1. J 
At tire Strasbourg Open women’s 
tournament, only two marches were 
played. Sabine Appelmacs; of Belgrum 
beafTamarine Tanasugam of Thailand. 
6-4, 6-7 (2-7), 6-T, and ArnaiidaCoctzer 
beat Anne-GaeJle Sidoffrf France. • - 
(AP. Reuters, AFP) 



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This shot by Enc Lindros, upper right, crossed the line for his first goat 


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Immediately after the Rangers' goal, 
the Flyers appeared to increase their 
lead to 3-1 on a power-play goal by 
B rind "Amour. But the tally was nul- 
lified after a video review showed that 
LeClair was in the crease. 

The ruling enforced the letter of the 


law, but violated its spirit LeClair was 
in the crease only because be was 
pushed there by Samuelsson. Undercur- 
rent interpretation of the crease-inter- 
ference rule, the video judge is not al- 
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JWTERNATIONAL HERALD TRIBUNE, THURSDAY, MAY 22, 1997 


PAGE 19 


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SPORTS 


Bulls Wake Up, but Just in Time 

^Dragging Until 4th Quarter , Chicago Defeats Miami 


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8 ““ ° f ' 

nnffS^v? 110 ? 80 thou 8^ t Miami was 
S for 

5SdS ferred ° Pponent ’ *** New York 

But even though the Bulls started out 

*£*9** Heal es a lS£h£? 

on Tuesday night, 
felling behind by as many as 16 poimsin 

MBA Platoih “ 

StSS-*®?’ **“* feemselves 

getter m the second half and won 84- 

77. The victory gave Chicago a’ 1-0 
advantage in the best-of-seven-game 

• Th l? , S s capped to attention in a 

tense final four minutes. Michael Jordan 

welted up a technical foul and Dennis 
JbdmM — who had his own technical, 
ms 12th of the playoffs — fouled out 
with 1 minute 19 seconds left 
. Rodman departed with four points 
and 1 9 rebounds, having given the Bulls 
the boost of energy they needed on 
defense. 

Indeed, tough defensive and poor 
finee-throw shooting undid the Heat, 
who scored only 11 points in the fourth 
quarter. The Bulls, meanwhile, put to- 
gether a 12-4 ran to finish off the 


i Jordan, who had 37 points, delivered 
with 3:26 left in the game when be 
penetrated across the baseline and 
passed out to Ron Harper on the peri- 


meter for an qpen3-pointer that gave die 
Bulls a 75-73 lead. Then, after a Heat 
time-out, Jordan picked up a loose ball 
off a Miami inbounds pass — a turnover 
forced by full-court pressure — and 
dunked it to give the Bulls a 77-73 
lead. 

Alonzo Mourning (21 points) con- 
tinued his free-lhrow woes y missing 5 

of 6 attempts in the final 2:20. 

From the start, the Heat looked fresh 
from the cleaners, pressed and ready to 
go despite a draining seven-game series 
with New York. It was the Bulls who 
looked out of sorts, stale from five days 
off. 

The Bulls did not seem to take the 
Heat seriously until the third quarter, 
when they trimmed the Heat’s 49-38 
halftime lead with an inspired 16-7 run. 
They drew that inspiration from Jordan 
and Rodman, who were able to force the 
Heat into turnovers and fluster their shot 
selection. Still, the Heat remained calm 
enough to hold a 66-61 lead after the 
third quarter. 

The Heat had the glowering Mourn- 
ing at center, while the Bulls had the 
affable Australian, Luc Longley. It was 
a matchup to watch. 

Mourning won the duel again and 
again in the first half. He had 5 blocked 
shots and 13 points before the Bulls 
armed themselves with double teams, 
sticking Mourning with the prickly 
Rodman at times. 

Rodman has a way of agi tatin g big 
men as well as officials, and his active 
style helped fuel a third-quarter 
awakening by the Bulls, who had hit just 
30 percent of their shots in the first half. 
Rodman’s two steals and four rebounds 
picked everyone up. 


He got away with some roughhousing 
it at first, going in for a lay-up and 
lowering a shoulder into Mounting. No 
foul was called as Mounting stretched 
out onto the court, holding his rib 

Things were getting rough and in- 
teresting. The Heat, which had hit 46 
percent of its shots from 3-point range in 
the first half, cooled down just a biL 

Then the crowd went crazy when 
Rodman dove to save a loose ball and 
tbe Bulls created two consecutive 
turnovers. That lift was turned into a 59- 
58 Chicago lead when Jordan hit a 
jumper with four minutes left in the 
quarter. 

But Rodman was called for his 12th 
technical of the playoffs when he hit 
Mourning in the back after the Heat’s 
center ana Jordan had collided. 

That lull in the Bulls' momentum 
opened a window for the Heat, who 
made a 9-2 ran to take a lead into the 
fourth quarter. 

That was when the Bulls needed to 
show that they were going to take the 
Heat seriously. 

■ WiDcens Not Going to Orlando 

The Orlando Magic asked for and 
were denied permission to talk to Lenny 
Wilkens, the coach of the Atlanta 
Hawks, according to NBA sources, the 
Associated Press reported from Or- 
lando, Florida. 

The refusal made Wilkens the second 
prominent coaching candidate to be 
eliminated from consideration for the 
Magic’s head coaching job within a 
matter of a few hours late Monday. 
Earlier in the day, the Magic's general 
manager, John Gabriel, met with Chuck 



Feed Intdl/rkr AModatadhcH 


Michael Jordan, No. 23, trying to prevent Dennis Rodman getting into 
more trouble alter Rodman picked up a third-quarter technical foul. 

Daly, who asked to have his name with- tough job. but I’m still confident that 
drawn from consideration as welL we’re going to get the guy we want.' ' 

The Orlando Sentinel reported Tues- Wilkens is the winningest coach in 
day that Gabriel said: “It’s going to be a NBA history, with 1 .070 victories. 


Marv Albert 
Charged With 
Sexual Assault 


By Lan Nguyen 
and Leonara Snapiro 

Washington Post Service 

WASHINGTON — Marv Albert, a 
well-known UJ5. sports broadcaster, 
has been indicted cm sodomy and assault 
charges alleging that he repeatedly bit a 
woman and forced her to perform oral 
sex in a Northern Virginia hotel room 
three months ago. 

Albert, 53, is the lead announcer for 
professional basketball coverage on 
NBC, the U.S. television network. 

The police said the 41 -year-old wom- 
an told them that Albert had been a fiieritf 
of hers for 10 years and was in the 
Washington area on Feb. 12 to broadcast 
a New York Knj cks -W ashington Bullets 
basketball game. She said Albeit called 
her to his hotel room ami that the two got 
into an argument shortly after midnight. 

“She says he threw her on the bed and 
that he bit her severely, viciously, on the 
back,” said Tom BeU, a police spokes- 
man. “She had bite marks, 10 or IS of 
them.” 

Bell said the woman told the police 
that Albert faced her to commit sodomy. 
The woman notified the police after seek- 
ing treatment at a hospital. Bell said. 

In a statement issued by NBC Sports, 
Albert said. “I categorically deny these 
charges and intend to vigorously defend 
myself against these allegations. I am 
confident that I will be completely ex- 
onerated when these allegations are ad- 
dressed in a public courtroom.” 

If convicted of forcible sodomy. Al- 
beit faces five years to life in prison. 


A Smashing Day 
For Giants 9 Kent 

r 

%He Hits 3 d Grand Slam This Year 


The Associated Press 
“i. Jeff Kent hit his third grand 
slam this season and drove in 
jl career-high five runs to lead 
fhe San Francisco Giants to a 
6-3 victory over the Colorado 
Rockies. 

i, “I don’t want to analyze 
everything that’s been hap- 
pening to me,” Kent said 
after Tuesday's game. “I’ve 

MBi BOUIIBiP -i**i-* 

been able to control my emo- 
tions and simplify this game, 
and it’s been fen for me. 
That’s what gives you suc- 
cess.” 

* Kent has hit. 10 boners, 
Jhree more than Bany Bonds, 
ijvho is usually the Giants’ of- 
fensive star. Kent has driven 
?n 42 rans, 20 more than 

‘ All three of Kan’s slams 
followed' walks to Bonds, 
mho is tied with Frank 
-Thomas for die major-league 
.walks lead at 42. 

> “He’s taking advantage of 
‘pitching around Bonds,” said 
|bon Baylor, the Rocktes’ 
*er. “In situations 


where Bonds can beat me. 
Fm not about to let him.” 

Ellh Burks and Vhmy 
Castilla homered far Color- 
ado, which is 2-9 on its 13- 
game road trip. 

Mm 7, Dodowwa Wally 
Joyner drove in four rans for 
the Padres, and Sterling 
Hitchcock allowed one ran 
and five hits in eight innings 
at San Diego. 

AiBiti Cianfiocco, starting 
at third base for San Diego in 
place of tbe injured Ken Cam- 
ntiti, drove in three runs, and 
Tony Gwynn went 3-far-3 
with a pair of doubles. 

Mike Piazza went 3-for-4 
with two doubles for Los 
Angeles. 

■brim* 8, IMs S Todd 
Dunwoody singled to cap a 
two-run rally by the Marlins 
in die n inth Inning a gainst 
John Franco, who bad con- 
verted 12 consecutive saves 
and hadn’t allowed a ran in 
his previous 16 outings. 

Florida won its eighth 
straight — one short of the 
franchise record — and im- 
proved to a major-league-best 
18-5 at hone. 



Griffey Slugs Home Run No. 20 

After 44 Games, Mariner Is on a Pace to Hit More Than 70 


Mmm A. Unl/Boao* 


Joe OHver of the Reds bracing for the incoming bad and the onrnshing Craig Biggio. 


CuHnali 3, Pirates 1 

Dann y Jackson, making his 
season debut, allowed three 
hits in 6*6 innings as host SL 
Louis stopped a four-game 
losing streak. Jackson had 
been sidelined since the be- 
ginning of spring training 
with a rib-cage muscle pulL 
Ron Gant homered for the 
third time in four games. 

smw 4, Kxpo« 2 Terrell 
Wade allowed two runs and 
eight hits in six inning s and 


drove in the go-ahead run 
with his first hit of the season 
as host Atlanta won its fifth 
straight 

Mark Wohlers got three 
outs for his 10th save, sending 
the Expos to only their second 
loss in nine games. 

pnum 3, cdM 2 Mark 
Letter gave up one run and 
three hits in ei^ht innings, and 
Ricky Bottahco survived a 
wild n inth to strike out the 
Cubs at Wrigley Held. 


Scott Rolen and Gregg Jef- 
feries each homered for tbe 
Phillies, who took a 3-1 lead 
into the ninth. Botxalico gave 
up three consecutive singles, 
then struck out pinch-hitters 
Brooks Kieschnick and Mike 
Hubbard for his 11th save. 

itexte 7, Aafcroa 4 John Smi- 
ley won his eighth straight 
decision against Houston 
since May 8, 1993, and Curtis 
Goodwin went 4-for-5 for 
visiting Cincinnati. 


The Associated Press 

It’s only May, but it’s bard not to think 
about Ken Griffey Jr.’s chasing Roger Mans’s 
record of 61 home rans in a season. Griffey 
has hit 20 homers in 44 games, so he’s on pace 
to hit more than 70. 

He hit No. 20 on Tuesday night — a 470- 
foot blast to right field. Maris hit 

No. 20 in game 55 in 1961, the year he hit 61 . 
Babe Ruth hit No. 20 in game 52 when he hit 
60 in 1927. 

‘ ‘If there's anybody out there who can, he’s 
probably the guy,” said Tim Salmon of the 
California Angels. “He’s one of those guys 
who, every time he gets up there, you go. Oh, 
man. I’ve just gor a bad feeling here.’ And 
there aren’t too many hitters like that” 

Salmon made some noise of his own Tues- 
day night, hitting a three-run double in the 
eighth inning to lift the Angels to an 11-9 
victory over the Mariners. 

With tbe Angels trailing, 9-8, Jim Edmonds 
and Dave Hollins walked with one out and Jim 
Leyritz reached first base when third baseman 
Russ Davis was late trying for a force play at 
second, loading the bases. Salmon drove a 2-2 
pitch to die gap in left-center to make it 11-9. 

Uim Jays 2 , teiksea o In New York, Pat 
Hentgen, who edged Andy Pettitte for tbe 
American League Cy Young Award last year, 
beat him again by pitching a five-hitter. 

Hentgen (5-1) extended his streak of con- 
secutive innings without an earned run to 39. 
He won his fifth straight decision with his 
league-leading second shutout 

Pettitte (6-2) pitched nearly as well, but was 


doomed by a shaky defense. Errors by Tmo 
Martinez at first base and Mariano Duncan at 
second produced an unearned rnn in the sixth. 
A grounder that got under Duncan's glove let 
another run score in the eighth. 

Ind umi 4, Royals 3 In Cleveland. Manny 
Ramirez, using a cracked bat hit a two-run 
homer in the eighth to lead tbe Indians to their 
10th come-ffom-behind victory. 

Tbe Indians trailed, 3-0, through six innings, 
got two rans in the seventh and wait ahead in 
the eighth. David Justice led off with a single 
and Ramirez followed with his homer. 

Qrtoia a 4, T igo ra s In Baltimore, Scott 
Kamiemedri took a one-hitter into the eighth 
after the surging Orioles scored four times in 
the fifth for their fourth straight victory. Tbe 
Orioles now lead the AL East by five games. 

Twins 4, Drawers 3 In Milwaukee, Scott 
Stahoviak homered and Minnesota handed 
the Brewers their seventh straight loss. 

Whit* Sox 10 , Rad Sox 1 hi Chicago, Frank 
Thomas reached base in his first three plate 
appearances, then fell one short of Ted Wil- 
liams’s record for most consecutive times on 
base. 

Thomas doubled in the first, then walked in 
the third and fourth to pull within one of 
Williams’s record of reaching in 16 con- 
secutive plate appearances, set in 1957. 
Thomas fried out to center in the fifth. 

iteigra 8, Athletics 3 Bill Ripken broke a 
fourth-inning tie with his first homer since 
June 5 of last season as Texas beat visiting 
Oakland. 

Bobby Witt (7-0) straggled early but tied 
the team record for best start, set by Jim Kem 
in 1979 and matched by Jeff Russell in 
1988. 











PAGE 20 


ART BUCHWALD 


A Beautiful Suit 



TT/ASHINGTON — 
W There is a yin and yang 
even when it comes to sexual 
harassment 

DeVan Shumway told me 
his story. 

He got on the elevator in 
his office building and a very 
attractive wo- 
man dressed in 
one of those 
suits with gold 
buttons was a 
fellow passen- 
ger. Shumway 
smiled at her 
and she smiled 
at him. 

To be polite, Bocbwald 
he said, “Thai’s a beautiful 
suit you are wearing.’’ 

She replied, “I'm going to 
sue you for a milli on dol- 
lars." 

Shumway was shaken. 
“You mean for saying you 
have a nice suit?" 

“You did not have my per- 
mission to say iL What J wear 
is of no concern to you." 

“Then why are you wear- 
ing it if you don’t want any- 
one to comment on it?" 

“I’m hoping Larry Hagler 
will notice it He used to work 
on the same floor that I do." 

“I would think the fact that 
someone noticed the suit 
would please you as welL A 
compliment in an elevator is 
certainly no cause to start 
World War HL” 


She said, "Women are sick 
and tired of men noticing 
what they are wearing. It’s 


‘So forget I said it,” 
Shumway answered. “It’s 
my fault for even noticing it 
because someone in the cof- 
fee shop told me to have a 
nice day , and like a damn fool 
I was having one." 


□ 


The woman turned her 
back on Shumway. A man got 
on the elevator and appar- 
ently knew the lady, so he 
said, “Gloria, you look rav- 
ishing.” 

“Be careful,” Shumway 
warned. “ Shell sue you for 
the entire farm." 

Gloria said, “Hello Blake, 
long rime no see." 

“I’m on the 10th floor 
now, and the express elevator 
never stops at the sixth on the 
way up. I forgot how good 
you look in clothes." 

* ‘You really think so?’ ’ 

“I love your staries too. 
Gloria, you are really put to- 
gether." 

‘ ‘That’s exactly what 1 was 
telling her," Shumway said. 


□ 


Snow White, the Fakes 


Reuters 

BRUSSELS — Thousands 
of counterfeit Snow Whites 
and even larger numbers of 
her seven dwarfs face destruc- 
tion after Belgian customs 
seized 13 containers foil of 
them at the port of Antwerp, 
the Belga news agency said. 
The plastic Walt Disney char- 
acters were reportedly on their 
way from China to France. 


Gloria looked at him and 
said, “You will hear from my 
lawyers in the morning.” 

“How come your buddy 
here says all those things to 
you ana you look pleased as 
punch, but I throw a compli- 
ment your way and you want 
me to get the death penalty." 

“There is a difference be- 
tween sexual harassment and 
flattery." 

“I know what it is,” Shum- 
way said. “It’s what someone 
who works on the 10th floor 
says to you. I assure you I will 
never mention an item of your 
clothing ever again.’ ’ 

“You’d better not, or my 
lawyers will ask for an all- 
female jury.” 


Beyond Good and Evil: A Writer’s Tough Life 



By Doreen Caivajal 

New Yort Times Service 


S AVANNAH, Georgia — In this balmy 
hothouse of eccentrics and characters, 

John Berendt is as prominent as a live oak, a 
celebrated muse of the South often pointed 
out by tour guides as they inch by me best- 
selling author in horse-drawn carriages and 
air-conditioned minibuses. 

Tourists wave. Berendt smiles. And die 
buses and canopied carriages drift languidly 
away, like jasmineblossoms or sand gnats — 
depending on the local view of the enduring 
popularity of Berendt’s bode, “Midnight in 
the Garden of Good and Evil," published by 
Random House almost three years ago. 

The Savannah shorthand for Berendt’s 
first literary effort is simply “The Book.” It 
is a story of an actual murder that is almost 
incidental to fts spicy gumbo of real char- 
acters who are stirred together, in some 
instances, in fictional scenes invented by the 
author. The cast i nclude s a gentleman-bach- 
elor. an antiques dealer with a bisexual lover 
and a pristine collection of Nazi memor- 
abilia; a tart-tongued black drag queen who 
calls herself The Lady Chabtis; foe gloved 
members of foe exclusive Mamed Woman’s 
Card Club, and die author himself, trans- 
planted temporarily from the Upper West 
Side to Savannah's gossipy historic quarter. 

Berendt, whose manuscript was once 
scorned by a prominent New York agent as too regional, has 
sold more tiun 1.25 mifoon copies of “The Book” and made 
him $4 million richer. Hardco v er sales have been so steady 
over the last three years that Random House executives 
sometimes joke about issuing a paperback version in 2002. 

And the book's popularity sho ws no sign of waning. It has 
increased Savannah’s tourism, spawned a cottage industry 
of memorabilia and inspired an autobiography by The Lady 
Cbablis. Then there are the “Midnight” Key lime cookies 
and, of course, the movie, now being fib"*** in Savannah. 
Clint Eastwood is directing, and Kevin Spacey stars as the 
antiques dealer, John Cusack as Berendt and The Lady 
Chaolis as herself. 

Still, no one, least of all the puzzled author, can frilly 
explain why “The Book" is still selling like peon pies. 

“It’s sort of baffling to me,” Berendt said. “But what I’m 
told is that there is a word-of-mouth phenomenon. It’s 
no thin g that I’m doing." 

But despite his modesty, Berendt has been known to sign as 
many as 29 books a minute. On one rainy morning in late 
April, at a Books-a-MQlion store in a Savannah strip mail, he 
bolted out of a car without waiting for the driver to find a 
pairing space so that he could increase his signature output. 
Since its publication, “Midnight" has burrowed into foe 



Author John Berendt in Bonaventnre cemetery, which figures in his book. 


middle r anks of the New York Times best-seller list Next 


week, it will be ranked No. 12, marking its 1 49th week in the 
nonfiction category. 

Success has made Berendt, 57, a wealthy, celebrated and 
cautious man. Five years after finishing the book, he is still 
trolling for the right story and perfect setting for his next 
effort The hunt is much more difficult now than in 1982, 
when he was an Esquire columnist raking advantage of 
cheap air fores to explore Savannah without benefit of a book 
advance or a publisher. 

He was a rather unlikely character to play mose of the 
South. Bom is Syracuse and educated at Harvard, be is a 
former editor of New York magazine who has lived for 
almost 30 years on the Upper West Side. 

His research brought him to the isolated and magical land 
of Savannah, a hish city in southeastern Georgia with stately 
18th- and 19th-century town houses, grassy squares shaded 
by dogwoods and live oaks, and intimatf* neighborhoods that 
coddled their eccentrics and elevated whispers of gossip to a 
storytelling art form. 

■ As the years passed, even the eccentrics started to consider 
Berendt a colleague whose ambitious plan to write a book 
was about as apt to happen as General Sherman’s donating 
Savannah back to the Confederacy. 

“Gossip is at a premium in Savannah," Berendt said over 
lunch at the DeSoto Hilton Hotel, where he picked at an 


improbable Southern version of a Reuben 
sandwich. Savarmahians “have a lot of 
time on their hands," he said. “People tell 

stories that are full and rich in their de- 
scription. In New Yoric, people would say, 
‘Before going out. Mis. Jones pat on her 
coat.’ That would not do in Savannah. . 
They would say, ‘Before going out, Mrs. 
Jones put on her coat from her third hus- 
band, who gave it to her before be com- 
mitted suicide.’ " 

In his book, he portrays himself as a 
detached and worldly narratin’, a = North- 
erner always ready to listen to stories of 
Savannah over martinis at the tomb of 
Conrad Aiken in Bonaventure Cemetery. 
“I wanted the critics to love it, and I didn ’t 
really care how much money I made,” 
Berendt said, referring to “Midnight.” 
“It’s a book, a real book. That’s what I 

wanted out of it, and that’s all I expected. I 
did nor expedihjs to be a best seller.” 

The book, a finalist far foe 1995 Pulitzer 
Prize in nonfiction, mixes fiction with feet 
Far example, Berendt was no t livi ng in Sa- 
vannah in 1981, when Jim Williams, the 
antiques dealer, was accused of shooting 
Danny Hansford, his sometime lover, ro death 
in the study of his 19tiHxntmy manshxi. 

Yet, there is a scene that describes a 
telephone call that Berendt received from 
The Lady Cbablis. alerting him to the/f 
moming h eadlin es announcing Williams’s! 
arrest. Li f act, Berendt did not even meet The Lady Chabtis 
until five years after foe murder. 

“There are characters in my book that have nothing to do 
with foe murder," Berendt said. “They seem to be con- 
nected, but they’re not. The subtitle of my book is ‘A 

C <- annlLi n CntMmnqfi Mm 


I* 








Ahn S. Xdna/Tbe Jiew Yarit'Cnca 


Sav annah Story, - ’ and it’s really a hundred Savannah stories. 
And foe trick 1 tri 


tried to do is pull it together.’ 

At least one of die book’s primary characters complained 
riiflt he does not quite recognize himself through foe lens of 
nonfiction. The character is Lufoer Driggers. Berendt’s 
pseudonym for a shy inventor who possessed a bottle of 
poison that some residents feared could be used to wreak 
havoc on Savannah's water supply. 

“I said some things with more of a droll sense of humor 
that didn’t come across,” said foe man, who prefers to be 
known by his pseudonym, he said, because he does not want 
the wider world to know who he is. 

But that view did not deter him from showing up ala party 
for Berendt in Savannah, nursing a cocktail in one hand, a 
cane in foe other and observing how difficult it is to walk . 
since he was struck by lightning. 

He marie fh?c observation as casually as he mi ght in 
ranting about what he had for lunch. As Berendt notes in his 
book. Savannah allows eccentrics to flourish “like hothouse 
plants tended by an indulgent gator . 11 ■ 




i ji.vj.i,:, i^rswi 


Rioting 





PEOPLE 




N EAT in line to challenge the 
chess-playing IBM computer is 
Natan Sharansky, Israel’s trade 
and industry minister, according to 
his rides. They said a match between 
Sharansky and Deep Blue, which 
recently defeated world champion 
Gary Kasparov, is scheduled dur- 
ing foe minister’s visit to New York 
next week. Sharansky, who honed 
his skills duringmne yearsin Soviet- 
prison camps, beat Kasparov several 
months ago in Israel when the 
champion played 40 simultaneous 
matches blindfolded. 


from an airfield in a New Yoric sub- 
urb. But foe 44-year-old Dallas auto 
repair shop owner also had state-of- 
the-art electronics gear, a wet suit 
and life raft — concessions to sur- 
vival lucking in Lindbergh’s “Spirit 
of Sl Louis." Signs's 23-year-old 
Cessna 210 cruises at 172 miles an 
hour. Lindbergh’s Ryan monoplane 
cruised at 107 mph and took 3316 
hours to cross the Atlantic. 


in tiie wall and lets in the light When 
the film works, you have to act." 


□ 


□ 


□ 


LcoSord/Tkc Anxiacd Preo 

WEDDED BUSS — Actors Matthew Broderick and 
Sarah Jessica Parker hug after their marriage in New 
York, just days after Broderick scoffed at the rumors. 


Seventy years after Charles 
Lindbergh made the first solo non- 
stop trans-Atlantic flight, a Texas 
businessman traced the same path, 
landing at Le Bourget airport near 
Paris at 11:25 AJ4L Wednesday. Bill 
Signs — who was greeted by 200 
people, including children and el- 
derly Dench aviation buffs — said 
he felt “pretty tired but pretty good” 
after foe flight of nearly 22 hours 


Isabelle Adjani, who headed this 
year's Cannes film festival jury, in- 
sists that tiie panel awarded Goldeo 
Palms to “great films, not good 
causes." In a rare post-festival in- 
terview in tbe French daily Le 
Monde, Adjani said foe 10-member 
jury had no intention of drawing up a 
politically correct list of winners. “It 
was not a question of crowning good 
causes but rather great films,” she 
said. “Simply, tbe majority of the 
most interesting filmmakers are the 
ones confronted with difficult situ- 
ations. Then- creativity blows a bole 


The Cable News Network has 
offered Tom Brokaw a multiyear 
contract worth more than $7 million 
annually to leave NBC News and 
become CNN's on-air leader, two 
executives familiar with tbe nego- 
tiations said. CNN would give 
Brokaw, 57, an houriong prime- 
time news slot and a commitment 
for several special programs, said 
the executives, speaking anonym- 
ously. Brokaw’s four-year contract 
as NBCs chief anchor expires on 
Aug. 30, and NBC executives are 
discussing tbeir own offer with 
Brokaw. Lead anchors for the three 
major networks are believed to get 
$ 4 million to $5 million a year. 


bidding was quieter than at the wild 
opening session. Sotheby’s in New 
York said the second day brought in 
S2.2 million, taking total sales for 
four of tiie six planned sessions to 
$6.9 million. The day’s top price 
was $32,200 fix’ a Louis XVI-style 
ormolu-mounted mahogany gueri- 
don. six times more than the es- 
timated high bid. 


□ 


□ 


Alexander Solzhenitsyn, the 
Nobel literature prize winner, has 
been in hospital for more than a 
week for heart trouble, officials of 
the Russian Alexander Solzhenitsyn 
Fund said, but they denied that foe 
78-year-old writer had suffered a 
heart attack. “Now he feels not bad, 
even much better. He is even work- 
ing,” said foe fond secretary Mu- 
nera Urazova. 


$6,000 for dinne r and drinks has 
been closed down for three months 
by local authorities. Consumer pro- 
tection authorities said last week 
they had begun legal proceedings 
against the Drefrer Hfllaw«aVv» 
after Preben Olsen lodged a com- 
plaint at a tourist office, saying he 
had been charged more than 1 mil- 
lion forints, newspapers said. But a 
successful claim agamst the restaur- 
ant’s owner would result isa max- 
imum fine of only 30,000 forints 
($176) under Hungarian law. 






Win 


□ 


Bec.:i Vi 


101 


Ennis Cosby has been posthum- 


ously awarded a master's degree in 
College at 


education from Teachers 
Columbia University. 




Cosby was a terrific^ person, epi- 


Tbe second day of the auction of 
items from the estate of foe Pamela 
Hardman continued to draw far 
higher prices than estimated, but 


□ 


A Budapest restaurant that 
charged two Danish tourists and two 
women companions more than 


tomizing the best of Teachers ___ 
lege," Arthur Levine, the presi- 
dent. told master's recipients. The 
son of actor Bill Cosby was pur- 
suing a doctorate in education at the 
school and bad earned sufficient 
credits for the master's. 


ran*. 




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' - S38 oo csfeyfee; * it * i 

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A»tria*o 

Balaam* 

Cadi RepdjBc*. 

Franca 

Germany 

Greece*... 

IrelHd 

Bely* 

HeVurtandc* 


EUROPE 


Hush **(Mosc&w)> . 
Speta - 


... 022-40411 
.D-SM-IUMS 
. .00-42-000-101 
..0-800-93-8011 

0138-8610 

...80-3*5-1311 

..1-880-550-098 

.172-1011 

.0869-622-0111 

75W04Z 

.900-99-90-11 


Sweden 

Switzerland*.. . 
Ualted KlsgdoaiJ 


E8nU*(Crtiv}p 

Israel.... 

Saudi Arabia*.... 


MIDDLE EAST 


029-795-611 

008049-0011 

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6800-99-9611 




'Cr ap ^ 


fitara 

Kenya* 

ShiUi Africa 


AFRICA 


51D-6200 

177 - 106-2727 
■_ 1-808-19 


Cant Bnd die WXI Access Number for ibe country you're calling from? Jim ask any opwvior for 
XTST Direct" Service, wrisH onr tfeb she at http-y/wwwatLcoa^trawler 


6191 

0-800-10 

6-808-994123 


AT&T 




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