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The World’s Daily Newspaper 

London, Tuesday, May 27, 1997 

No. 35,531 



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Japan Skirmishes With Protesters in the East China Sea 

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Two patrol boats of the Japanese Coast Guard trying to stop Taiwanese fishing boats from approaching 
disputed islands claimed by Tokyo, Beijing and Taipei. The protesters said their vessels were rammed. Page 4. 

Juppe Say^He’ll Resign 

French Vote Shows That ‘We Need a New Team 9 

By Joseph Fitchett 

Inlrrnaju <rul Herald Tribune 

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Bilbao Be* 

NATO and Russia: The Gazprom Factor 

Financial Interests and Ambitions Lead Yeltsin to Sign the Accord 

5b To °P«> Up 
Title Race 

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By David Hoffman 

- fc • Washington Post Service 

MOSCOW — Andrei Kominov, a 
Russian foreign policy analyst, said he 
recently bumped into an executive from 
Gazprom, Russia's powerful natural gas 
monopoly, which is raising billions of 
dollars on global markets to build a 
mammoth gas pipeline to Western 

“why are you guys so concerned 
about the enlargement of NATO to the 
East?*' the executive asked. “I can as- 
sure you that the enlargement of NATO 
to the East will be more than com- 
pensated for by the enlargement of 
Gazprom to the Wes L ” 

His comment helps explain why Pres- 
ident Boris Yeltsin plans to sign a 
Founding Act in Paris on Tuesday with 
the leaders of the 16-member alliance, 
paving the way for the North Atlantic 
Treaty Organization to invite Poland, 
Hungary and the Czech Republic to join 
by 1999. 

Mr. Yeltsin is signing, begrudgingly, 
because a deal with NATO is an es- 
sential step in his larger effort to in- 
tegrate Russia into die exclusive clubs of 
the wealthy nations, according to Rus- 
sian analysts and Western diplomats. 

Despite criticism at home. Mr. 
Yeltsin has accepted the view of Rus- 
sia's financial and industrial leaders that 
the country must keep its doors open to 

the West, they said. It is a view also 
championed by Anatoli Chubais and 
Boris Nemtsov, the deputy prime min- 
isters at the helm of Mr. Yeltsin’s re- 
invigo rated second-term reform drive. 

“Whar we’re seeing is the influence 
of Chubais and the financial elites.” a 
Western diplomat said. “They are not 
interested in confrontation with the 
West. They want stability with the West 
and they want to avoid remilitarization 
of the economy.” 

In public, Mr. Yeltsin has not made 
such an argument . Rather, he said that 
NATO expansion was inevitable and 
that Russia had no choice but to “rain- 

See RUSSIA, Page 14 

PARIS — Prime Minister Alain 
Juppe announced Monday that he would 
resign follow ing a humiliating disavow- 
al by French voters in the first round of 
parliamentary elections. 

The balloting Sunday put the So- 
cialist alliance in a position to take over 
the government in the final voting this 
weekend, making it a virtual certainty 
that the unpopular Mr. Juppe would 
have to go. His announcement thai he 
would leave after the runoff, no matter 
what the outcome, confirmed that. 

“We need a new team led by a new 
prime minister,” he told leaders of the 
center-right coalition. 

By Taking the blame for the govern- 
ment's unpopularity. Mr. Juppe. 51, 
spared President Jacques Chirac from the 
embarrassing task of publicly dismissing 
his roost loyal aide and political ally. 

Mr. Chirac is to address the nation on 
Tuesday night. 

For die last two years, the two men 
have operated as an unusually tight tan- 
dem as they sought to cut back the 
government’s role in the French econ- 
omy, even at the price of record un- 

Neither man seemed able to offer the 
French people persuasive explanations 
for mounting unemployment and shrink- 
ing benefits or reassure voters that the 
government was determined to root out 
corruption and curb political favoritism. 

Mr. Chirac was supremely comfort- 
able working with his long-time loyalist 
and had made it plain that he hoped to 
keep Mr. Juppe as prime minister during 
what promised to be difficult months 
next year as the deadline approached for 
France to join a single European cur- 

That looming test prompted the two 
men to call elections a year early — a 
move that proved a disastrous miscal- 
culation. Now. Mr. Juppe's departure 
opened the way for conservative leaders 
to claim that they are responsive to the 
protest message from voters and prom- 
ise a fresh start, new faces and mended 
ways if the center-right coalition can 

See JUPPE, Page 8 

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Prime Minister Alain Juppe answering questions Monday at a press 
conference in Bordeaux after his conservative coalition’s election setback. 

The Euro and Chirac 
Among the Big Losers 


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From Asia’s ‘Tigers, ’ a Lesson for Impoverished Africa 

By Nicholas D. Kristof 

New YortTbnes Service 

KISANGANI, Congo — One of the great para- 
doxes of Africa is that its people are for the most part 
desperately poor while its land is extraordinarily nch. 
East Asia is the opposite: a region mostly poor in 
resources that over the last few decades has enjoyed 
the greatest economic boom in human history. 

The area around this river port city in eastern 
Congo, the former Zaire, is a case in point: it is 
dilapidated and impoverished yet studded with dia- 
monds. Back in the 1950s, when this countiy and 
several others in Africa were at the same income 
level as South Korea while blessed with far more 
natural resources, it might have seemed reasonable 
that Africa would soon leave Aria in die dust 

Now South Korea has a per capita income of about 
$ I0,000ayear, and Congo stands at $150. Narrowing 
the gap is a fundamental challenge for Congo’s new 
leaders as they try to rebuild their country. 

How to TVim Poor Into Rich: 
IPs More Than Economics 

And a vital first step, not only for Congo but also 
for others across Africa — and for big aid donors like 
the United States — is understanding why such 
yawning disparities have occurred. 

A wave of new research into die contrast between 
Africa and East Asia is producing some surprising 


findings. The most striking and reassuring conclu- 
sion is that although East Asia enjoyed some sig- 
nificant cultural and historical advantages, its eco- 
nomic boom relied on factors that probably can be 
replicated elsewhere. 

hi a nutshell, the formula was an outward-oriented, 
maker-based economic policy coupled with an em- 

phasis on education and health care. Countries in 
other regions like Chile have followed the strategy 
with success. Several African countries, led by 
Uganda, are trying to leant from the Asian experience • 
and are enjoying their own Asian -style boom. 

Uganda, a beautiful, vividly green nation on die 
banks of Lake Victoria in East Africa, now has one of 
the fastest-growing economies in the world. Yet it is 
simply at die crest of a wave of African countries that 
are experimenting with privatization and stock mar- 
kets — there are 16 so far in Africa — and trying to 
prove that rapid economic growth is not a prerogative 
of East Asia alone. 

“This is still in the early days, and we’re not 
euphoric and jumping up and down, but we think that 
parts of Africa are moving in the right direction,” said 
Alan Helb. chief economist for Africa at the World 
Bank. “I think there are grounds for optimism.” 

At last count, four countries — Uganda, Angola, 

See AFRICA, Page 14 

Search for Mobutu’s Wealth Centers on Switzerland 

By William Drozdiak 

Washington Post Servict 

ZURICH — Mobutu Kongolo al- 
ways seemed to have a special affinity 
for Switzerland. The son of Zaire's 
fallen dictator, Mobutu Sese Seko, at- 
tended school here, bestowed gifts of 
diamonds on his closest friends, and 
basked in the attention of financiers 
eager to cultivate one of Africa’s bigger 
family fortunes. 

Far from the chaotic poverty of his 
homeland, the young Mr. Mobutu also 
found the Alpine nation a pleasant base 
for his mercantile interests. In May 
^1995, he registered a trading company 
foamed Yoshadinthe town of Marti gny, 
according to the commercial registrar’s 
office in the Swiss canton of Valais. 

; Among its activities, die company 
listed “show business.” But its: main 
purpose, Swiss investigators say, was to 
Channel funds from sale of Zaire’s cop- 
per, cobalt, gold and diamond resources 
into family bank deposits. Letters 
Signed by Mobutu Kongolo requested 
that clients make payments for precious 
i t|pp»is and minerals -into a numbered 

Swiss account. As the Mobutu clan 
began a humiliating journey into exile 
last week, the new government of 
Laurent Kabila launched into hot pur- 
suit of the family fortune — once es- 
timated at between $4 billion and $7 
billion — accumulated during three de- 
cades in power. 

To the chagrin of Mr. Kabila's gov- 
ernment, however, the Mobutu money 
trail is proving maddeningly elusive. 
While the Swiss government says it has 

impounded all wealth linked to the dic- 
tator, Mr. Kabila's envoys say they are 
getting no help in determining if the 
funds are still in Switzerland, have been 
moved, or have been spent. 

“Everybody knows that Mobutu kept 
a lot of his assets here.” said Jose 
Mutombo-Kady, a member of Mr. Kab- 
ila's ruling alliance who was sent here to 
find the money. “So where did they go? 
And if the money left the country, where 
are the documents to prove it? We just 

want clear answers to these questions.” 

Some critics say the saga of the 
Mobutu money could erupt into another 
scandal, damaging Switzerland's repu- 
tation as it tries to recover from charges 
that Swiss bankers and businessmen col- 
laborated with Nazi Germany. 

Switzerland has seized the dictator’s 
30-room villa near Lausanne and has 
clamped a freeze on all family assets. 

See MOBUTU, Page 14 

Timing Blunder 
By the President 

By John Vinocur 

Imernanonol Herald Tribune 

PARIS — Regardless of the final 
results Sunday in the runoff round. 
France is coming out of its parliamen- 
tary elections more troubled than it went 
in, an increasingly unsettled place, dis- 
affected. quarrelsome and vague on 
leadership and direction. 

President Jacques Chirac, whether 
backed by a narrowed conservative 
margin in a new National Assembly or 
opposed by a majority of Socialists and 
Communists, has become die president 
who called an election he didn't need — 
and lost, whatever the details of its 

Never an intellectual, never a vis- 
ionary, Mr. Chirac was always in the 
French mind, at die very least, a politi- 
cian of real professional capabilities. 
Excluding a miraculous turnabout, Mr. 
Chirac appears to have forfeited this 
pillar of respect, asking the French for 
their opinion on his government’s com- 
petence a year before a vote was re- 
quired and meeting with a brutal reply 


— that toe electorate neither liked nor 
understood the government’s policies 
or prospects, and resented the presi- 
dent’s attempt to finesse the issue, a 
grocer hoping to settle his debts before 
. opening the new bills slipped under the 

At the core of political life in France 
and of its link to relationships with the 
rest of the world, the president made a 
political gamble. Losing it would not 
necessarily be mortal here or in politics 
in general, but Mr. Chirac’s choice to 
gamble his 464-seat parliamentary 
cushion turned out to be ill-informed, 
almost startlingly out-of-touch. 

Monday night’s announcement that 
Prime Minister Alain Juppe would not 
be back, come what may in the runoffs, 
presented the French with an unpopular 
head on a pike, while attempting to look 
attentive and quick to respond in the 
face of the first-round’s awful results. 
But the move had the same kind of 
obviousness as the elections them- 

See FRANCE, Page 8 

New Uncertainty 
On Fiscal Policy 

By Alan Friedman 
and John Schmid 

International Herald Tribune 

Prospects for Europe's planned 
single currency have been plunged into 
fresh uncertainty by the Socialists' 
strong showing in French elections, 
economists said Monday. 

No matter who wins the runoff elec- 
tion Sunday, they said, fiscal policies in 
France, and probably elsewhere in 
Europe, are now more likely to be 
watered down and the euro to become a 
weaker currency than expected. 

The French vote also means that — 
from Brussels to Bonn, Paris and Rome 
— the public debate over monetary un- 
ion is likely to shift to an emphasis on 
job creation and economic growth at the 
expense of austerity, economists said. 

“Whatever happens on Sunday, the 
climate already is shifting,” said Chris- 
topher Potts, head of economic research 
at the Chevreux de Virieu investment 
house in Paris. “There already has been 
a vote against the stares quo. ” 

In die financial markets, the surprise 
frouncing of the French center-right 
raised questions about whether any 
French government could remain com- 
mitted to deficit-reduction and privat- 
izations, or stick to a tough fiscal sta- 
bility pact after the introduction of the 

Benchmark stocks posted their 
largest one-day drop in nearly five 
years, and shares of many state-con- 
trolled companies that were planned for 
sale, including Thom&on-CSF and 
Credit Lyonnais, led the plunge. (Page 

17) The franc declined to 3.3745 to the 
mark from 3-3685 last Friday. (Page 


Even if the center-right government 
manages to maintain a majority in the 

See EMU, Page 8 

u Is • 

Newsstand Prioes 

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Dstvmik.A4MD.Kr. Oman 1.250 Rials 

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Great Britain ...£ Q&0 Saud Arabia .10.00 B 

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Sponsored Section 

Pages 9-13. 

| The IHT on-line http:/- 

'wv/v.' | 

Mb Soriba/Rciocn 

Erkaban and 

SECULAR POWER — ■ Prime Minister Necmettin 
Turkish generals at Ataturk’s mausoleum after the military rebuked 
him Monday and announced a purge of some Islamist officers. Page 8. 


page two cunvri - Pmao8. 

Naples: Polishing the Past for Today Polish Right Demands Amendments 


Australia Apologises to Aborigines Tateban Further Imposes Islamic Law 

Spaniard Set to Be Bosnia Troubleshooter 

PARIS (Reuters) — The United 
States and Prance have agreed that 
Carlos Westendorp. Spain's represen- 
tative to the United Nations, should be 
the next international envoy to Bosnia, 
diplomatic sources said Monday. 

Secretary of State Madeleine AI- 
brigbL after talks with her French 
counterpart, acknowledged agreement 
on the issue but refused to identify the 
individual. But diplomatic sources 
said, “Westendorp isright” He would 
replace Carl Bildt of Sweden. 

Washington has been pushing far an 
American, Jacques Klein, the UN ad- 
ministiaiar in Croatia's disputed eastern 
Slavonia region, to be the deputy, and 
officials said a consensus was forming 
around that appointmenL 

Tbey said that a second deputy 
might be named and that a European 
would fill that role. 

The powers involved in Bosnia peace 
efforts — United Stales, France, 

Germany, Russia and Britain — were 
expected to announce Mr. Westen- 
dorp’s appointment Friday. 

Jakarta’s Car Project 
Attracts Resentment 

As Indonesia approaches parliamen- 
tary elections Thursday, its “national” 
car, the Timor, has become a target of 
some of the many protests that marked 
the campaign. The company that im- 
ports the cars from South Korea pending 
completion of a local plant is controlled 
by President Suharto’s youngest son. 

Even though the Timor is protected 
by tariff barriers, sales are well below 
target levels and unsold models are 
piling up. Page 17. 

The Party’s Over 
For Cutesy Ties 


“The whimsical tie has had a 
gtoodnin for your money, but now it 
is over,” writes Suzy Menkes. 
’ 'Those cute little silk creatures are 
being killed off or relegated to the 
top shelves in stores.” What’s re- 
placing them? Page 15. 



The Rebirth of Naples / Where Culture Is Identity 

Heritage Salvages a City From Decline 

N APLES — Culture is certainly good for 
tourism, and may also be good for the 
soul, but rarely has it been used to combat 
chaotic traffic, street thugs, prostitution, 
organized crime and even corruption. 

Culture, however, was Antonio Bassolino's 
chosen weapon to clean up Naples when he was 
elected mayor in December 1 993. And. remarkably, 
the strategy seems to be working. 

1 ‘When I arrived here, I faced the paradox that for 
all of Naples's enormous cultural heritage, cultural 
policy was at the bottom of die ladder of the 
municipal government’s priorities.” said Mr. Bas- 
so lino, a former Communist Party official . * ‘I made 
cultural revaluation our top priority.” 

Neapolitans, long resigned to living in what was 
arguably Italy’s most rundown, dirty and dangerous 
city, were naturally skeptical. Even after the na- 
tional government provided S30 million to make 
downtown Naples look safe and presentable for a 
Group of Seven summit meeting in July 1994, they 
stoically awaited a return to “normality.” But by 
then the Communist mayor was convinced that 
culture was his strongest political card. 

The first step involved restoring and reopening 
scores of neglected churches, museums and palaces 
in dilapidated districts wisely avoided by most local 
people and tourists. The eviction of cars, prostitutes 
and muggers from many historic plazas — not least 
the area around the Royal Palace, the San Carlo 
opera house and the Piazza del Plebiscito — in turn 
liberated downtown for ordinary Neapolitans. 

All this might resemble urban renewal were it not 
also accompanied by.a burst of creativity from local 
artists, writers, musicians, filmmakers and play- 
wrights. They have livened things up for Neapolitans, 
but they are also being noticed elsewhere in Italy. 

Indeed, simply being Neapolitan has suddenly 
become a passport to artistic success in Rome, 
Milan, Turin and beyond. 

But the most visible result of this minirenaissance 
was a reawakening of Neapolitan pride in the city, 
not only in its extraordinary history dating to its 
founding by Greeks in the seventh century B.C., but 
also in its independent spirit, idiosyncratic per- 
sonality and creative talenL And thanks to this new 
pride, Mr. Bassolino can now count on public 
support in his fight against the city’s deeper ills. 

“Through culture, we have rediscovered our 
identity because culture is identity,” the mayor said 
in an interview in his office overlooking the Piazza 
Municipio. “We have rediscovered the identity of 
the old city-state, of the Neapolitan Republic, of the 
great European city.” 

His enthusiasm is to be expected, not least because 
he is up for re-election in December. But it is widely 
shared here, and not just by those who are benefiting 
from a revival of the tourist industry. Neapolitans 1 
readily recite what still has to be done about un- 
employment, traffic, drugs, pollution and the mafia. 
But most are quick to beast that Naples is on a roll. 

Not all credit is due to the mayor. The anti- 
comiption campaign that swept across Italy in 1 992 
landed a good number of local politicians in jail. A 
new cultural association, Napoli ’99. also started a 
program called Monumenti Porte Aperte, under 
which long-closed historic buildings were opened j 
to the public. | 

Mr. Bassolino and Nicola Spinoza, the director j 

By Alan Riding 

New York Times Service 

jjt. ±. 

Neppr A, aUmw/Thr Vi. Vjrk Tima 

Neapolitans were long resigned to living in one of Italy's most rundown* dirty 
and dangerous cities. But the restoration of scores of neglected churches* 
museums and plazas* like the Piazza del Plebiscito, liberated locals and tourists. 

for cultural heritage, adopted and expanded the 
program. While many major buildings are owned 
by the Roman Catholic Church and the national 
government, the mayor provided free security by 
reassigning 200 municipal workers to guard the 
sites. Now, about 60 Gothic and Baroque churches 
— of an estimated total of 200 historic buildings — 
are open for several hours every day. 

T HE MAJESTIC Capodi monte Museum, 
which sits on ahiU overlooking the city, has 
also been renovated. “We have reorgan- 
ized the museum, not chronologically, but 
by collections.” Mr. Spinoza said, referring to the 
priceless Famese and Bourbon legacies. In October, 
a huge exhibition dedicated to the 19th century. 
“Civil ta DeU’Onocento,” will open in the Ca- 
podimome and other museums. 

As much as polishing its past, the city has found 
ways of bringing old and new culture together. In 
December 1 995, a monumental artwork by Mimmo 
Paladino called ‘ ‘Salt Mountain,’ ’ a pyramid of salt 
encrusted with strange equine sculptures, drew vast 
crowds to the Piazza del Plebiscito. Last December, 
in the same square, another artist. Jannis Kounellis, 
created a huge installation consisting of old kitchen 
tables, arm ones and other odd pieces of furniture. 

Artistic happenings and open-air rock concerts in 
other squares have also consolidated the civic “re- 
conquest" of the city. Indeed, creative energy is 
evident in all forms. The Neapolitan singer Pino 
Daniele has long been popular throughout Italy, but 
new rock groups are being bom here every month. 
Interest in traditional Neapolitan music was also 
increased by the appointment of a respected com- 

poser, Roberto De Simone, to head the Naples 
Music Conservatory last year. 

“This is part of rescuing our identity, but I’m not 
interested in recreating an ‘authentic’ sound for the 
sake of nostalgia,” Mr. De Simone said. “I want a 
new image of music in Naples, above all by em- 
phasizing choirs and orchestras. This collective 
approach is important. A society without a com- 
munal life is condemned to die.” 

The city’s strongest postwar theater personality 
was the actor and playwright Eduardo De Filippo, 
whose tragicomedies are still regularly presented 
In the early 1 980s, though, a performance art troupe 
called False Movimento was founded by a group of 
young Neapolitans, beaded by Mario Martone, and 
immediately brought a new experimental approach 
to theater. Later. Mr. Martone joined forces with the 
actor-directors Enzo Moscaio and Tony Servillo to 
create Teatri Uniti. 

Members of the Teatri Uniti now perform reg- 
ularly at the Teatro Mercadante, a city-owned theat- 
er on the Piazza Municipio that reopened in 1 995 for 
its first frill season in more than 30 years. In the 
works is a plan to create a permanent company at the 
Mercadante modeled after Giorgio Strehler’s le- 
gendary Teatro Piccolo in Milan. 

Whether Neapolitans living in depressed suburbs 
feel pan of this revival is perhaps doubtful, yet they 
cannot escape noticing that something is changing. 

“Bassolino is criticized for doing a lot for culture 
and not enough for unemployment, said Francesca. 
Del Vecchio, an art historian. “But give him time. 
Four years ago, we couldn’t sit in an outdoor caffi 
because of the traffic and the crime. Now it’s like a . 
Mediterranean city again.” 

Algerian Forces Said to Kill 40 
In a Big Sweep Against Rebels 


Agence France-Presse 

ALGIERS — Algerian se- 
curity forces have lulled 40 
suspected Islamic extremists 
in a four-day offensive south- 
west of Algiers, according to 
press reports Monday. 

The El Watan and El 
Khahar dailies said the sweep 
in Ouarsenis, about 250 ki- 
lometers (150 miles) from Al- 
giers. was one of the largest 
since the civil war began in 
thecounny in 1992. 

It was focused on a zone 
that includes the headquarters 
of Ahmed Benaicha, who is 
considered to be second in 
command of the Islamic Sal- 
vation Army, the armed wing 
of the banned Islamic Salva- 
tion Front. About 200 of his 
men are in the region, and a 
price of 4.5 million dinars 
($90,000) has been put on his 
head, according to posters pul 
up in recent days. 

The newspapers said army 
and police forces, backed up 
by local self-defense units. 

were progres 
cause of the 

\ slowly be- 
icult terrain. 

Hong Kong Bans Garuda Flights 

The Associated Press 

despite the use of helicopters. 
The operation, which El 

HONG KONG (AFP) — Authorities on Monday banned 
Garuda airline flights using the Airbus A330, following up a 
decision by local airlines to ground the planes, which have 

Khabar said was begun on the suffered mechanical problems. 

i -ci—c. — c p 

people and forcing government offices 
and schools to shut Monday. 

basis of information from two Garuda, Indonesia s national airline, unlike its Hong Kong 

and schools to shut Monday. 

• Most domestic flights were canceled 

informants, has not been of- counterparts Cathay Pacific and Dragonair, is continuing to after flooding from three days of heavy 

ficially confirmed. fly its A330s powered by Rolls Royce Trent 700 engines. 

Legislative elections are to It says the engines are slightly different in design from the 
be held on June 5. Islamic Cathay Pacific and Dragonair planes and adds that Rolls- 
groups have been accused of a Royce has made no recommendation to ground the jets. Some 
series of car bombs and mas- of the Trent engines have failed on recent flights, 
sacres since the election cam- _ n . „ r r* 

paign opened May 15. More LOUVre KeODeiUS Alter 5 liaVS 
than 100 people have been nimp , Jr. , , . , ^ r 

I^Ujgd. PARIS (AP) — The Louvre opened its doors for the first 

The government has tirae “ five days Monday, after striking night watchmen 
pledged to ensure the elec- a S reed t0 end * eir blockade of entrances to France’s largest 

Sons take place in security, - . , h 

and have announced a serire . , had ^ ° ut Tbm-sday from seeing the 

of sweeps across the coun- Mona Lisa and toe thousands of other artworks and antiquities 
^ at the Louvre, which usually attracts 20.000 visitors a day at 

Western estimates are that dl * s t ™ e of year. 


The government has 
pledged to ensure the elec- 
tions take place in security, 
and have announced a series 
of sweeps across the coun- 

Western estimates are that 
more than 60,000 people have 
been killed in the Algerian 
conflict since 1992, when the 

Moderate’s Triumph 



Tn Iran May Press U.S. 

S .-r». — 

r : " .. 

Will Washington Have to Change Tack? 

By Steven Erlanger 

New York Tunes Service 

WASHINGTON — The election of a 
relatively moderate cleric as Iran’s pres- 
ident will put pressure on the United 
States from its European allies to ex- 
plore policy changes toward Tehran, 
senior American officials and scholars 
of Iran say. 

But with a strong possibility that Iran 
was involved tn the bombing in Saudi 
Arabia that killed 19 Americans last 
year, the White House will have to move 
slowly, the officials said, and it w ill be 
up to Iran to show signs of change first. 

While the landslide for Mohammed 
Khatami stunned officials in Washing- 
ton, where Iran is viewed as a “rogue 
nation” for its alleged aid to terrorist 
groups, they cautioned that Tehran’s 
more conservative Islamic leaders could 
move to frustrate and undermine Mr. 
Khatami rather than accept the rebuke 
from the electorate. 

Some American officials called the 

vote a signal of popular discontent with 
the restrictions of the 18-year-old Is- 

Storms in Philippines Kill 19; 
Domestic Flights Canceled 

MANILA — Pounding rains and 
strong winds toppled power lines and 
flooded the capital, killing at least 19 

rain submerged a generator and wiped 
out electricity at the main terminal of 
Manila’s airport. 

Some residential areas also were 
without power. 

the restrictions of the 18-year-old Is- 
lamic revolution. 

Even Mr. Khatami “has emerged in 
the public eye as a candidate of real 
change in a way he probably did not 
intend,” said Shaul B akhash , an Iranian 
historian at George Mason University in 

Mr. Khatami will probably act with 
care not to offend the conservative lead- 
ers who dominate Parliament and the 
senior clergy who clearly backed his 
main opponent, the speaker of Parlia- 
ment, Ali Akbar Nateq-Nouri, Mr. 
Bakhash said. 

Iran's foreign policy' is expected to 
remain firmly in the hands of the coun- 
try’s “supreme leader,” Ayatollah 
Sayed Ali Khamenei, who remains hos- 
tile id the United States. 

Much about Mr. Khatami's views 
remains unclear, the officials and ana- 
lysts said. IBs election comments on 
foreign policy were limited to a desire to 
“ease tensions” with other countries, 
said Stephen Fairbanks, an expert on 
Iran at the Woodrow Wilson Interna- 
tional Center for Scholars, in Wash- 

Some officials acknowledged that 
with Mr. Khatami taking over as pres- 
ident in August, it will be harder to 
argue that Iran is a dictatorship with no 
com p e ti ng voices and no real evidence 
of pluralism. 

“The jury is out on what this will 
mean,” said Nicholas Burns, spokes- 
man for the Stare Department “We've 
got no argument with the people of Iran. 
But we have to- see that die government 
of Iran changes its actions.’ ’ 

He said the United States was open to 
a dialogue with Iranian leaders, so long 
as it included a discussion of issues of 
concern to Washington. Another offi- 
cial said such concerns include Iran’s 
work to develop nuclear and chemical 
weapons, its support for terrorists and 
what the official called Iran's “rabid 
opposition to the Mideast peace process 
and anyone who supports it." 

"If these things don’t change," Mr. 
Bums said, "it won’t be possible to 
have better relations with Iran.” 

Washington will be listening care- 
fully, another official said, suggesting 
that a first indication of change might 
come in Tehran's statements about the 
peace effort in the Middle East 

"And then if we see real change in 
their support for terrorism," the official 
said, “then one could say, ‘Hey, this is 

really interesting.’ But the ball is in 
Tehran’s court.” 

Mr. Bakhash said the vote was a blovy 
to Ayatollah Khamenei’s conservative 
policies, adding: “But what conclu- 
sions does he draw? Will he hunker 
down and frustrate the movement for 
change, or embrace it carefully?” . , 
Mr. Fairbanks said that changes made 
in March to a high-level council to settle 
disputes between the government and 
leading clergy may favor a morepsodr 
erate line. The departing president, 
Hasfa emi Rafsanjani, known as apra g,- 
raatist and thought to be a supporter of 
Mr. Khatami, will run the council for 
five years. ^ 

Die council was expanded by Ayaio^ 
gh.invnw to include government arto 
faction leaders, outsiders and technocrats 
like the chairman of the central bank and 
the finance minister. Its role was also 
expanded, to act as an advisory council^ 
Ayatollah Khamenei on important issues, 
Mr. Fairbanks said, and it is possible that 
Mr. Rafsanjani, as ns leader, will have 
more power than Mr. Khatami. 

“This election marks an important 
change, even if the foreign policy side 
moves much more slowly, and should 
dispel some stereotypes about the ref 
gime ,” Mr. Fairbanks said. 

Troops Detain 
Sierra Leone 
Ex-Ministers i 



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election that the Islamic Sal- would be guaranteed. (AP) 

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migrant workers. (AP) 

Striking public transport workers in Brussels paralyzed 
the bus and subway network Monday, bringing traffic chaos to 
the Belgian capital. The strike was called without warning, 
leaving lines of commuters stranded. Union officials were 
meeting Monday afternoon to decide how long to prolong the 
stoppage, which was called to protest management positions 
in negotiations to amend salary levels. (AP) 

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Middle East 

A headline in Monday’s editions incorrectly attributed 
remarks about Iran ’s yearning for change. They were made by 
the Iranian president, Hashemi Rafsanjani. 

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FREETOWN, Sierra Leone — 
Troops in Sierra Leone's capital 
searched houses to look for ministers of 
the former civilian government 
Monday, a day after a miiitaty council 
seized power in the West African state;. 

Military sources said five formeijf 
ministers were detained at the military 
headquarters. ; 

South Africa joined the United Na- 
tions and the Organization of Africa^ 
Unity in condemning the coop, which 
was carried out after little more than a 
year of civilian rule. ; 

The coup leaders announced Sunday 
the formation of an Armed Forces Rev- 
olutionary Council, led by Msyor 
Johnny Paul Koromah. They said they 
wanted to bring rebels of the Revo- 
lutionary United front into the gov- 
ernment to consolidate an elusive peace 
in the crvfl war. 

. . The staff at Freetown’s main hospital 
said at least IS people were killed in the 
fighting Sunday. Two of the dead were 
Lebanese citizens, according to Leb- 
anon’s foreign minister. Fans Bouez. 

The hospital sources said two Ni- 
gerian soldiers from the West African 
peacekeeping force known as Ecomog, 
had been killed in the fighting, but Eco- 
mog 's field commander, General Victor 
Main, said in Lagos that there had been 
no Nigerian casualties. 

A spokesman for the revolutionary 
council, Captain Paul Thomas, urged res- 
idents to return to work, but shops and 
markets remained closed. 

Major Koromah said he overthrew 
President Ahmad Tejan Kabbah because 
his government, elected last year after 
four years of military rule, had failed tp<> 
consolidate peace and the political situ#! 
ation had encouraged tribal conflict . 

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Evenings at the Prison: Texas Executioners Set a Rapid Pace 


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By Sam Howe Veihovek 

.» N*v fcrf 7mn Srnitf 

HUNTSVILLE. Texas — When the 
rime caroe for Texas to kill Richard 
Gerry Dnnkard, he was strapped to a 
gurney and wheeled into the execution 
chamber. The prison chaplain. Jim 
Brazzil, rested a hand on tire condemned 
man's knee. He kepi it there as Mr. 
Dnnkard was asked for any lasr word. 
j "No. sir,” came the response, and the 
riian convicted of killing two women and 
tartan with a clawhammer was promptly 
put to death. 

. Besides that Monday evening, the 
minister also spent last Tuesday. Wed- 
nesday and Thursday evenings beside a 
than on a gurney in the chamber. 

* With Texas in the midst of a spate of 
executions whose pace has no parallel in 
the modem era of the death penalty. Mr. 

Brazzil said last week that he found the 
best way to minister to a man facing 
lethal injection was to view execution as 
he would any other calamity. 

"It’s like I'm seeing a man dying of 
cancer or a heart attack, or maybe I’ve 
come upon an accident in the road and 1 
know this man is going to die,” Mr. 
Brazzil said. “I’m not interested in his 
past. I'm interested in what’s in his heart 
at the moment of his death.” 

If the executions of convicted mur- 
derers go as scheduled. Texas will have 
executed eight men in May. a record 
monthly high for any state since the U.S. 
Supreme Court reinstated the death pen- 
alty in 1976. This record will probably 
not last long: Texas has scheduled 1 1 
executions for June. 

Since 1920 the most people that any 
state has put to death in a month was 1 0, 
in North Carolina in October 1947, ac- 


cording to the Capital Punishment Re- 
search Project in Headland, Alabama. 

By sometime in June, Texas will have 
shattered the yearly high of 19 exe- 
cutions by a state since the death penalty 
was reinstated. Texas also set that re- 
cord. in 1995. and it has accounted for 
nearly a third of all executions in the 
United States since 1976. 

But if all those statistics are news- 
worthy, they also suggest something 
mundane. In Texas the death penalty is 
becoming a matter of routine. 

So routine than, even the dwindling 
number of death-penalty opponents who 
come for vigils at the prison occasionally 
lose count. When Bruce Edwin Caltins 
was put to death Wednesday, and the 
protesters said the Lord’s Prayer, a 
woman announced that he was the 1 20th 
man executed here since 1982. Actually 
he was the 121 sl 

So routine that people who live and 
work near the prison take little notice. A 
block away, at the Dairy Queen on 1 1 th 
Street. Marc Strickland. 18, who works 
at a nearby body shop, was eating a 
Heath Crunch Blizzard at the moment 
Mr. Callins was executed. 

“It just doesn't bother me,” he said, 
gesturing out the window with his plastic 
spoon at the huge red -brick Huntsville 
Unit prison, which everyone here calls 
The Walls. ”A guv kills somebody, he 
pays with his life. That’s it.' ’ 

Even the tune for executions in Texas 
has been reset to fit workaday schedules. 
They used to take place in the hours after 
midnight, when the authorities believed 
there would be less chance for the spec- 
tacles of screaming pro- and anti-death- 
penalty forces massed outside the pris- 
on. Now such commotion is rare. And 
under a 1995 act of the legislature in- 

tended to “ make it easier on everyone 
involved,’ * in the words of a state prison 
official, executions are carried out in die 
early evening. 

Why Texas executes so many more 
people than other states is a matter of 
debate; one provocative thesis suggests 
that the state's heritage of frontierjustice 
has mixed with modem urban problems 
to make Texans more culturally suited to 
demanding the death penalty. 

On the other hand, while polls 20 
years ago showed that Texans supported 
executions at rates much higher than 
Americans at large, the support today for 
the death penalty nationally mirrors that 
in Texas. So it may be that other states 
just need time to caich up. 

One major reason for the increase in 
Texas is that convicts have exhausted all 
their challenges to a two-year-old state 
law intended to limit the appeals process 

and cut the average stay on death row 
from nine years to half that or less. 

As the legal environment has 
changed, so has the mood on death row. 
"Everybody is talking about it,” said 
Earl Russell Behringer, 33, convicted of 
repeatedly shooting a couple on a lover's 
lane near Fort Worth more than 10 years 
ago. “It’s becoming inevitable. The 
public and the media and the politicians 
are all saying, speed up the appeals, get 
these guys executed. So I would say, yes. 
chances are good that I will be ex- 
ecuted.” Mr. Behringer is scheduled to 
be put to death June 1 1. 

Several stales, including New York, 
have reimposed the death penalty but 
have yet to execute anybody. In Cali- 
fornia. where 476 people are on death 
row, executions are major news: Only 
four people have been executed there 
since the death penalty was reinstated. 

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b States Look to Insure 
S Children of the Poor 

:. NEW YORK — While Congress 
looks for ways to provide health in- 
i- surance for children of the working 
L. poor, more than one -third of the states 
L; are exploring proposals with the same 

Many states already have modest 
programs to insure children whose par- 
t ents earn too much to qualify for Medi- 
caid, and a handful, such as Massachu- 
^ sens and Minnesota, have started 
" comprehensive programs for unin- 
sured children. The new state propos- 
als would expand coverage to as many 
as 800,000 additional children, accord- 
ing to the National Governors' As- 

At least three states, including New 
York, are considering plans to cover 
children in families that earn more than 
the ceiling income for Medicaid, and 
I. Arkansas and Virginia adopted such 
measures in March. At least 12 other 
l( states are weighing programs with a 
* lower income threshold. 

7 Although most states have been cut- 
J ting welfare costs, these proposals have 
T1 drawn broad support as lawmakers 
^ grapple with twin issues: the scarcity of 
. health benefits for families in low- 
paying jobs, and changes in welfare 
, laws that may compound the problem. 
These programs are popular because 
drey deal exclusively with children and 
_ because they are relatively raexpens- 
- ive. In Arkansas, when Governor Mike 
Huckabee, a Republican, signed le- 
_ gjslation in March to extend Medicaid 

to 80,000 more children, he said, 
“‘There’s not a single piece of legis- 
lation that I am more proud to be a part 
of signing.” (NTT) 

Clinton vs. Court 

WASHINGTON — Three cases be- 
fore the Supreme Court, including one 
to be argued this week, could have a 
major impact on President Bill Clin- 
ton’s work and personal life. 

The justices will hear arguments 
Tuesday on whether to uphold a federal 
law that would make Mr. Clinton the 
first president empowered to reject 
specific items from spending bills, the 
so-called line-item veto. 

The court also may decide soon 
whether to allow Paula Jones to pro- 
ceed immediately with her sexual-har- 
assment lawsuit against Mr. Clinton. 

In addition, the White House is ask- 
ing the justices to reverse a lower 
court's order giving Whitewater in- 
vestigators access to government law- 
yers’ notes from conversations with 
Hillary Rodham Clinton. 

The cases are “immensely signif- 
icant. both personally and otherwise,” 
Herman Schwartz, an American Uni- 
versity law professor, said. 

4 “Each one raises fimdaroenta] ques- 
tions about the power and role of the 
presidency,” he said. (AP) 

Selling Bugs Bunny 

WASHINGTON — With the help of 
a “wascally wabbit,” die U.S. Postal 

Service is getting back into the T-shirt, 
coffee mug and key-chain business. 

Six years after it pulled the plug on 
sates of such merchandise in its 40,000 
post offices, the agency is launching a 
sales blitz built around 31 souvenir 
items celebrating a Bugs Bunny stamp 
that went on sale last week. 

T-shirts, baseball caps, ties, wrap- 
ping paper and even pewter-framed 
photo holders featuring reproductions 
of the cartoon character’s 32 -cent 
stamp will soon be available from 
clerks who sell stamps. 

“We've got all this wonderful stamp 
art, and it seems a shame not to use it,” 
Bany ZiehJ, a spokesman for the Postal 
Service, said. Postal officials said the 
new retail program should produce $75 
million in sales this year, money that can 

be used to keep stamp prices down. 

The new re tail -sales effort, 
however, has already generated crit- 
icism, fueling debate over bow in- 
volved the Postal Service should get in 
money-generating activities. (WP) 


Cindy Pearson, executive director of 
tbeNahonal Women’s Health Network, 
a 20-year-old advocacy group, on the 
newfound interest of Congress in wom- 
en's health issues: “I think it is a 
double-edged sword. For so many 
years, all the proscribing that came out 
of Congress was punishment for sexual 
activity. But in the past few years, the 
strength of the women’s movement has 
made them occasionally choose to make 
iTiftriiral decisio ns through legislation 
that they think are helpful to women, 
which are often arguable.” (MT) 

Skydiver Leaps, 
Saving Her Life, 
As Crash Kills 6 

The Associated Press 

MIAMI — Clinging to a 
wing and waiting to be told to 
jump, a skydiving student 
watched in horror as the pilot 
struggled with the controls and 
the little plane began to stall. 

With 22 jumps muter her 
belt, die student, Carol 
O'Connell, was left with two 
choices: Leap from the out- 
of-control ana possibly over- 
loaded plane or hang on and 
hope the pilot would recover. 

She jumped when die plane 
was at an altitude of about 
2,000 feeL As she parachuted 
slowly to die ground, she 
could see the Cessna 2 10 with 
six colleagues inside as it 
corkscrewed into a field of 
sweet potatoes and burst into 
flames Sunday afternoon. 
Everyone aboard was killed. 

“I’m very grateful to be 
alive,” she said in an inter- 
view with the Sun-Sentinel of 
Fort Lauderdale. “I can’t ex- 
plain why I’m still alive while 
these other people have left 
behind many loved ones.” 

Investigators were looking 
into whether the single-en- 
gine plane, designed to cany 
six persons, had been carry- 
ing too much weight. 

A videotape filmed by a 
witness indicated the plane 
was not going fast enough 
after making a turn. 

Rich CVooea/Keottn 

NO STRADDLING OF THE ISSUE — A biker being greeted as the 10th annual 
Rolling Thunder ride to call attention to MIAs and POWs entered Washington. 

Away From 

• An air force sergeant convicted of rape 
and 14 related charges involving three women 
was sentenced to 30 years in prison At his 
sentencing at Fairchild Air rorce Base in 
Washington state. Master Sergeant Napolean- 
Bailey also received a dishonorable dis- 
charge. (AP) 

* Concerned by a jump in cases of Lyme 
disease and the discovery last year of deer 
ticks infected with the disease in Van 
Coitlandt Park in the Bronx, New York City 
will begin scouring more paries for deer ticks, 
health officials said. (NYT) 

•A 25-year-old engineering student from 
Virginia who came to New York City to be a 
bridesmaid at a sorority sister's wedding was 
struck and killed by a hit-and-run driver in 
Greenwich Village, the police said. (NYT) 

; ;vrr 

r ose 

tl.S. Drive to Naturalize Immigrants Was Overzealous 

address a mounting backlog 
of citizenship applications, 
but Republicans contend that 
it has been hijacked by White 
House political operatives 
along the way for election- 
eering purposes. 

Doris Meissner, the com- 
missioner of immigration and 
naturalization, issued a set of 
sweeping safeguards to pre- 
vent immigrants with crim- 
inal records from becoming 
citizens. But an independent 
review concluded in April 
that many of the agency’s 
own employees had ignored 
the directives. 

Representative Lamar 
Smith, Republican of Texas, 
who has been the adminis- 
tration. ’s most severe critic cm 
the citizenship issue, praised 
the immigration service for 
“making good progress” in 
tracking down the scofflaws. 

By Eric Schmitt 

New York Times Service 

•Clinton administration will 
•seek to strip the citizenship of 
nearly 5,000 immigrants who 
■were wrongly naturalized 
during an immigration drive 
last year, according to federal 

’■ Revoking that many cit- 
izenships at any given tone is 
'•without precedent for the Im- 
v^nigtation and Naturalization 
^Service, and it poses enor- 
mous legal and logistical 
challenges for the govern- 
ment. until now, the agency 
has never dealt with more 
than about two dozen revoc- 
ations a year. 

Be ginning last fall. Repub- 
licans accused the adminis- 
tration of mounting an elec- 
tion-year campaign to 
streamline citizenship proce- 
dures to allow more than 
180,000 immigrants to be- 
come citizens before die 
November elections without 
having their criminal records 
fully checked. 

J As a result of these cri- 
ticisms, the INS undertook a 
review of the nearly 1.1 mil- 
lion people who were granted 
citizenship between Septem- 
ber 1995 and September 1996 
To determine how many were 
wrongfully naturalized. 

_ An audit whose findings 
were released to Congress on 

Friday found that 16,400 of 
die new citizens had a record 
of at least one felony arresL 
Arrest or conviction, by itself, 
is not grounds for revoking 
someone’s citizenship. But 
the audit, which Is nearly 
-complete, also found 4,946 
cases in which a criminal ar- 
rest should have disqualified 
an applicant or in which an 
applicant lied about his or her 
criminal history. 

“We believe that we are on 
firm ground in proceeding on 
administrative revocations 
where somebody has factu- 
ally made a misrepresentation 
on a felony arrest,” Assistant 
Attorney General Stephen 
Colgate said. 

the findings mark the 
latest blow to the immigration 
agency and its Citizenship 
USA program. The program 
was started in late 1995 to 


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Elections in Indonesia: ‘A Time of Crucial Transition’ 

Juwono Sudarsono, vice governor of 
the National Resilience Institute in 
Jakarta, an arm of the Indonesian De- 
partment of Defense and Security re- 
sponsible for training senior military 
and civilian officials, discussed Indone- 
sia’s legislative election with Michael 
Richardson of the International Herald 
Tribune. The election will take place 

Q: Why has there been much more 
violence mid anti -government dissent in 
this campaign than in previous cam- 

A: This is a time of crucial transition 
for Indonesia. A large number of lower- 
and middle-class Indonesians have been 
empowered by the development process 
that has taken place over the past 25 
years. They have come to the fore and 
tried to assert themselves and play a 
much more forceful role in the political 
life of the country. 

Indonesia has a gross domestic 

Q & A / Juwono Sudarsono, 

product per capita of Si ,300. It was $70 
just 30 years ago. This is a massive 
change in one generation. 

Or course, not everyone has suc- 
ceeded. There are still about 86 million 
young Indonesians between the ages of 
15 and 29 who are trying to exert their 
influence in the political life of the na- 
tion. They are the people the govern- 
ment helped through presidential dir- 
ectives on cooperatives, agricultural 
extension, health and especially 
primary educati o n. Now they are be- 
ginning to bite the hand that fed them. 


Q: Why are they turning against the 
government of President Suharto? 

A: Partly because being in power for 
30 years has made it more dim cult for 
the president and the ruling Golkar party 

to sustain the level of legitimacy that 
they previously could secure. 

Indonesia has been one of the more 
successful Third World development 
stories. But there’s a general feeling that 
those who made it have gone up much 
faster titan those who were left behind. 


Q: Isn’t democratic reform lagging 
far behind the pace of economic and 
social change in Indonesia? 

A: Indonesia is debating the pace and 
scope of political change. But if the 
president wants to go at 35 miles per 
hour, these young kids want to go at 100 
miles per hour. 1 would settle for 50 
miles per hour. There’s a generational 
gap in perceptions about how far and 
fast the change should go. 

Seventy milli on Ind o nesians , more 

than one-third of the country’s pop- 
ulation, now live in urban areas. Sixty- 
five percent of them are under 30. 


Q: How do you think President 
Suharto and the government will react 
to the campaign violence? Will they 
crack down or widen opportunities for 
political participation? 

A: In 1992, the president made state- 
ments encouraging political openness. 
But he became disconcerted by the level 
of rhetoric that heightened expectations 
in a way he felt was dangerous. 

He sid recently that the parties them- 
selves should evaluate the effects of the 
violence in the campaign. I think he 
believes that the parties should really 
get to grips with organizing politics 
because the campaign appeared to sanc- 

tion the use of violent political rhetoric 
and action. 

Indonesians love spontaneous move- 
ments. But it’s time to get a grip on the 
nitty-gritty of politics. 


Q: How can that happen when die 
rules of the game at present say that 
when campaigning, one cannot even 
criticize tiie government’s development 

A: The rules were agreed upon by the 

three contesting parties because they 
realized that heightened and radical 
rhetoric would tend to get out of hand. 
That's just what happened. 


Q: What do you expect the election 
result to be? 

A : I tiifnk the Golkar will retain its 
majority. Perhaps it can achieve its aim 
of winning 70 percent of the vote. But 
the more important problem is the ac- 
ceptance of the legitimacy and fairness 
of the ele ctio n. 

Australia Apologizes for Aborigine Policy 


MELBOURNE — Prime Minister 
John Howard of Australia mate a per- 
sonal apology Monday to tens of thou- 
sands of Aborigines who were taken 
from their parents under a former 
policy of forced assimilation. 

Mr. Howard’s apology «mn» hours 
before his government released a hu- 
man rights report that said the forced 
assimilation amounted to genocide. 

But the prime minister fell short of 
offering an official apology as called 
for by the Human Rights Commission 
in Its report, tilled the “Stolen Gen- 
eration,” abort Aborigines taken from 
their parents between the 1880s and 
the 1960s. 

“Personally, I feel deep sorrow for 

those of my fellow Austr alians who 
suffered injustices under the practices 
of past generations toward indigenous 
people,” Mr. Howard said at a con- 
ference in Melbourne on Aboriginal 

“I am sony for the hurt, the trauma, 
many here today may continue to feel 
as a consequence of those practices,” 
be told the mainly Aboriginal audience 
of 1,500 delegates. 

He won applause for his apology, 
but drew jeers when he said Australian 
history since white settlement in 1788 
was not a history of “imperialism and 
exploitation ami racism." 

Hundreds of delegates stood and 
turned their back on Mr. Howard as he 
continued his speech, which stressed 

that better Aboriginal living standards, 
not “gestures,” were the key to re- 

“The Australian practice of indig- 
enous child removal involved both 
systematic racial discrimination and 
genocide as defined by the interna- 
tional law,” the repcst said. “Yet it 
continued to be practiced as official 
polity long after being clearly pro- 
hibited by treaties to which Australia 
had voluntarily subscribed.” 

The rights commission said that 
genocide did not necessarily mean the 
imme diate physical destruction of a 
group or nation and that the forced 
removal of Aboriginal children was 
genocidal regardless of the good in- 
tentions of welfare groups at die time. 

Smnn ITDtrro/BaitrM 

Prime Minister Howard taking a drink from dancers at the conference. 

Indonesia Vote 
Won’t Be Fair, 
Monitor Says 

Cmptlcd tj Our SttgFnm Dopatches 

JAKARTA — An independent mon- 
itoring group in Indonesia asserted 
Monday that the national elections this 
week would not be fair because they 
favored the governing Golkar party. 

Asked at a news conference whether 
the election process was free and fair, 
Mulyana Kusumah. secretary-general 
of the Indonesian Election Monitoring 
Committee, replied: “No.” 

About 125 million Indonesians are 
eligible to vote Thursday for 425 seats 
in the House of Representatives. An 
additional 75 seats are reserved for the 
politically influential military. 

The 27-day campaign that ended Fri- 
day was marked by noting and arson, 
despite stringent regulations that lim- 
ited public campaigning. 

The monitoring group was formed in 
March 1996 by 50 activists but has 
never been recognized by the govern- 
ment, which has limited its activities and 
will not allow its members to be preseP 
at po lling stations on election day. 

T he committee said in a statement 
that it had recorded a number of vi- 
olations during the campaign. 

It did not give details except to say 
that state television had provided 
Golkar with substantially more broad- 
cast time than the other two parties 
permitted to contest the elections, the 
Muslim-oriented United Development 
Party and the Christian-Nationalist In- 
donesian Democratic Party. 

The monitoring group called on the 
People’s Consultative Assembly, the 
country’s highest constitutional body, 
to guarantee a democratic poll. 

The assembly, which comprises the 
500 members of Parliament and 500 
delegates selected by the government, 
will meet in March to elect the president 
and vice president and to approve gov- 
ernment policy. (Reuters, AFP) 


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Flare-Up in East China Sea 

Japan Blocks Protesters From Disputed Islands 

The Associated Press 

TOKYO — Dozens of 
boats carrying protesters 
from Hong Kong and Taiwan 
retreated from a region of the 
East China Sea on Monday 
after Japanese Coast Guard 
ships bumped some of them 
to block them from landing on 
disputed islands. 

Spokesmen for the protest- 
ers said the Japanese rammed . 
and damaged two of their 
boats, while Japanese officials 
mentioned only “contact” 
Television footage showed 
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boats off course, bat no dam- 
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The Taiwanese Foreign 
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ings” of the protesters. 

A ministry spokesman said: 
“Whatever actions Japan 
takes cannot change our stance 
of sovereignty over the Diaqy- 
us,” die name of the disputed 
islands in Chinese. “ *We won’t 
give up an inch of territory.” 

Taiwan, China and Japan 
all claim the East China Sea 
islands, which lie between 
Taiwan and the Okinawa is- 
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ing grounds and possible oil 
and gas deposits. The pro- 
testers from Hong Kong, 
which returns to Chinese rule 
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The dispute dates to at least 
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Media in Japan reported 
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sels were in position to block 
28 protest boats approaching 
the islands, which are called 
the Senkakus in Japanese. 

A spokesman in Hong 
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U.S.-Japan Defense Ties 
Are Criticized by Chinn 

BEIJING — China criticized Japan’s 
military alliance with the United States on 
Monday, accusing the two of targeting 
Beijing and warning of a resurgence in 
Japanese militarism. 

“The long-term goal is to deal with the 
imaginary troubles made by an econom- 
ically and militarily stronger C hina, " the 
official China Daily newspaper quoted 
2rao Jieqi, a research fellow at the institute 
,of Japanese studies of the Chinese Academy 
of Social Sciences, as having said. 

„ „ prime- Minister Ryutaro Hashimoto of 
Japan visited the United States in April and 
assured President Bill Clinton that Tokyo 
was not seeking a cut in U.S. military forces 
in Japan and Asia. There are 100,000 U.S. 
troops in Asia. 

The China Daily also denounced the 
planned revision of the 1978 Japan-U.S. 
defense guidelines for security cooperation. 
They are expected to be updated by this 

“The redefined U.S.-Japan security 
agreement helps set the tiger out of the 
cage,” tiie newspaper quoted Liu Jiangy- 
ong, director of die department of northeast 
Asian studies of the Chinese Contemporary 
International Relations Institute, as having 
said. (Reuters) 

Burma Sentences Aide 
For Opposition Party 

RANGOON — Burma said Monday that 
it had sentenced a member of Daw Aung 
San Suu Kyi’s National League for De- 
mocracy to four years in jail on a charge of 
falsifying documents. 

U Myo Khin, 39, the opposition parry’s 

secretary for Yankin township in Rangoon, 
was arrested May 12 ami charged with 
fraudulently altering a family registration 
list and citizen registration card, the 
Burmese government said in a statement 

It said that U Myo Khin ’s arrest and 
sentence had nothing to do with a party 
gathering scheduled for Tuesday. 

The gathering is aimed at celebrating the 
anniversary of fee party's landslide victory 
in fee 1990 election, which was not rec- 
ognized by the governing State Law and 
Order Restoration Council. (Reuters) 


McNamara to Attend 
Conference in Hanoi 

HANOI — Robert McNamara, the U.S. 
secretary of defense during much of the 
Vietnam War. and Vietnamese officials are 
due to meet next month in Hanoi to examine 
lessons from the conflict, a Foreign Min- 
istry official said Monday. 

Mr. McNamara, a member of a non- 
government U.S. delegation comprising 
some 50 researchers and historians, will 
attend a “Missed Opportunities” confer- 
ence between June 19 and 22 with Vi- 
etnamese government ministers and aca- 
demics. (Reuters) 

6 Die in Kashmir Battle 

• SRINAGAR, India — An Indian Army 
officer, three soldiers and two suspected 
separatist guerrillas were killed in a battle in 
Kashmir, an Indian defense spokesman said 

The fighting occurred late Sunday after 
the army received a tip that a group of rebels 
was hiding in fee village of Butwani, 22 
kilometers (13 miles) northeast of Srinagar, 
the summer capital of Jammu and Kashmir 
stale, army officials said. (Reuters) 




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Edag Engineering a Design AG 
Edelstahlwerke Buderus AG 
Elring Winger GmbH 
Fahrzeug Technik Ebem GmbH 
GEDA Gebriider Dingerkus GmbH 
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Mapal Dr. Kress AG 
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Petri AG 

Pfinder GmbH & Co. 

Reitter & Schefenacker GmbH & Co., KG 
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ACD Tridon Europe Ltd. 

Bundy International 

Gill's Cables Limited 

Hawtal Whiting Engineering Ud. 


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Precision Exhaust Systems, SA 


Castellon SA 

Caucho Metal Productos, S.L 
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Bhar, Incorporated 
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Magee Carpet Company 
Mays Chemical 
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Motion Industries, Inc 
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Munoz Machine Products 
Nelson Metal Producls Corporation 

New Venture Gear, Transfer Case 

Olin Corporation, Brass Division 
Paxon Polymer Co. 

Peckham Vocational Industries, Inc 
Plymouth Rubber Co. 

Precision Products Group, Inc, 
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RDS/Rapid Design Service, Inc 
Rexel, Inc. 

SSI Technologies, Inc 
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Thomson Saginaw, Division of 
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A ‘Moderate 9 in Iran 

Political Earthquake 

Iran has been jolted by a political 
earthquake as powerful as the geologic 
upheavals that have rocked it in recent 
years. Against the wishes of the ruling 
clergy, voters overwhelmingly elected 
a new president dedicated to relaxing 
or eliminating the political and reli- 
gious repression that has long dis- 
figured their country. 

The question is whether Iran’s cler- 
ical leaders will get die message and 
allow die new president, Mohammed 
Khatami, to carry out die reforms out- 
lined in his successful campaign. Iran's 
presidency is less powerful than its 
religious establishment, and clerical 
leaders have shown no sign of backing 
away from their commitment to impose 
Orthodoxy at home and sow Islamic 
revolution and political terror abroad. 

Unlike most repressive regimes, Is- 
lamic Iran holds regular, competitive 
elections. But democracy operates 
within strict limits. Candidates are 
screened in advance by the ruling 
clergy for orthodoxy and acceptability. 
Mr. Khatami won clerical approval, 
along with three rivals. More than 200 
other presidential hopefuls did not. 

Mr. Khatami's reputation as a re- 
former comes primarily from his tour 
as minister of culture and Islamic guid- 
ance from 1982 to 1992, when he 
loosened the stria censorship of 
books, magazines and films. That peri- 

od of relative enlightenment ended 
when clerical followers of Iran's most 
powerful religious leader. Ayatollah 
Ali Khamenei, forced his resignation. 

Associates say Mr. Khatami will 
now move to legalize political parties, 
ease jpress restrictions and restrain the 
religious militia who spy on people's 
private lives to enforce strict Islamic 
codes of dress and behavior. But he 
must move carefully, remembering the 
fate of revolutionary Iran’s first elected 
president, Abolhassan Bani-Sadr, who 
was dismissed after 17 months for 
challenging the religious establish- 
ment Mr. Khatami’s calls for prag- 
matism will also encounter opposition 
in the sensitive area of foreign policy, 
where ban's sponsorship of terrorism 
and subversion, and its drive to acquire 
nuclear weapons and advanced mis- 
siles, have alarmed Washington and 
much of the Middle East 

Mr. Khatami's election may rein- 
force calls for a relaxation of America’s 
tough economic sanctions against Iran, 
which are not supported by most of 
Washington's European allies. But any 
consideration of a change in U.S. policy 
must await concrete evidence that 
Tehran is prepared to abandon the 
policies that led to those penalties, par- 
ticularly in the areas of terrorism and 
nuclear weapons, ban's long-oppressed 
people have unequivocally demanded 
change. Religious authorities win defy 
the protest vote at their own peril. 


Let’s Whit and See 

In the last year or so. the American 
policy of treating Iran and Iraq as a 

A ‘'moderate" has been elected 
president of Iran. This news needs to be 
read with caution. It is not simply that 
the past American search for a mod- 
erate interlocutor in Iran has gone 
poorly. Structurally, the circumstances 
re main unpromising. Iran is an Islamic 

matched pair of rogues Iras failed to 

republic, a state that puts faith and the 
if the i 

institutional power of the mullahs first 
All presidential candidates had to pass 
an ideological purity test The week- 
end victor is not a man from the out- 
side, but a man from the inside. 

As the elected president, Mo- 
hammed Khatami will still be No. 2 to 
the supreme religious leader. Ayatol- 
lah Ah Khamenei. Mr. Khatami is said 
to have, within the revolutionary con- 
text, a liberal bent If tins is what the 
Iranian people voted for, others can 
only hope that they get it But it is 
something yet to be proved and cannot 
be taken for granted. 

There is no doubt, however, drat this 
election has been anticipated as the har- 
binger of the sot of change in Iran that 
would permit and even require the 
West, and particularly the United Stales, 
to alter basic policy. The political theory 
is that Iran’s revolutionary ardor and 
discipline are fading and that the coun- 
try is becoming just one more vexing 
but manageable Third World place. The 
strategic theory is that the United States 

needs to get on with the permanent 
of enlisting 

geopolitical requirements 
ban in the containment of Iraq in the 
Gulf and of Russia in Central Asia. 

keep the Western allies from differ- 
entiating between them and attempting 
to deal more normally with Iran. 

It is still very early, however, to go 
with those in Europe and elsewhere 
who seem ready to give Iran credit for 
policy changes it has not in feet made. 

Hostility to the Iranian revolution is 
not the basis of American policy, as 
hostile to die "Great Satan" as the 
Tehran leadership has been. What the 
United States objects to, and what it 
should objea to. are specific deeds of 
Iran: its support of international ter- 
rorism and subversion, its promotion of 
armed challenge to the Middle East 
peace process, and, most ominously, its 
pursuit of nuclear weapons and other 
weapons of mass destruction. It is not 
ideological pique or bad dreams about 
Iran's seizure of the U.S. Embassy 
hostages that account for the difficulty 
here. It is Iran’s actual policy. 

For American diplomacy, the prob- 
lem of Iran has become in the first 
instance a problem of managing a 
Western alliance with several different 
views of Iran. With the Tehran elec- 
tion. another opportunity may be 
arising to coordinate Western policy 
around the notion of an Iran as a state 
that is not intrinsically and irreversibly 
a rogue but needs to be held to the 
international rules. The most foolish 
thing the West could do would be to 
take Mr. Khatami's elevation as an 
occasion to give Iran a free pass. 


What’s in the Hold? 

Until the horrifying crash of ValuJet 
Flight 592 a year ago, few air travelers 
were aware of what sort of cargo might 
be aboard their flights and what safety 
precautions applied. The investigation 
brought to light many serious safety 
problems, including some that the gov- 
ernment and airlines might well have 
addressed long before that tragedy. 

The investigation produced a finding 
that 144 potentially hazardous oxygen 
generators had been mislabeled 
n empty” and loaded into the hold. 
These canisters either started or fueled a 
deadly fire, which led a National Trans- 
portation Safety Board investigator to 
say it is his view that toxic smoke from 
toes burning in the cargo bold may have 
killed or knocked out everyone aboard 
before the aircraft headed nose-down 
into the Everglades. 

Should hazardous materials be car- 
ried on any passenger flights? And on 
any kind of flight, aren’t precautions 
taken to protect against cargo-hold 
fires? The safety board has issued 
warnings about this for years, but not 
until November did the Federal Avi- 
ation Administration announce that it 
was going to issue an order requiring 
smoke alarms and fire-suppression 
systems for cargo holds. The agency 
then did ban the transportation of oxy- 
gen generators as cargo on any pas- 
senger flights in die United States. 

But last Tuesday, Continental Air- 
lines disclosed that a flight last month 
illegally carried hazardous oxygen 
generators, apparently also mislabeled 
by a contractor — and also in a cargo 
hold with neither a smoke detector nor 
any fire-suppression system. What 
oversight system missed all this? 

Last December, die major airlines 
said they voluntarily would agree to 
"move quickly" on the smoke detect- 
ors — but no detectors were installed. 
Only weeks ago, the Air Transport As- 
sociation, which represents these air- 
lines, announced that die carriers vol- 
untarily would install the two safety 
systems over the next five years. 

Five years? Even the FAA now has 
felt it necessary to speed things up (a 
little) by ordering all airlines to inkall 
the smoke detectors and fire-suppres- 
sion systems within three years. But this 
means three years after the FAA issues a 
final rule — which acting FAA ad- 
mifiisZFatorBany Valentine said wiUnot 
be until at least the end of this year. 

If, as FAA officials insist, die 
agency now is moving to improve its 
oversight and respond quickly when 
safety concerns are raised, it is a con- 
structive change. More evidence -is 
needed, however, before an increas- 
ingly safety-conscious flying public 
can begin to believe it. 






RICHARD McCLEAN. Publisher <£ Chief Executive 
MICHAEL GETLER. Executive Editor 

• WALTER W ELLS, Managing Editor • PAUL HORVUZ. Deputy Managing E£tor 

CARL GEWIRTZ. Associate EtBtors • ROBERT J. DONAHUE. EdSer of the EtBurial Pages 
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• RB^BONDY. Deputy Publisher 

• JAMES McLEOD, Advertising Director • DIDIER BRUN. Circulation Director. 
Director de la PubEcadon: Richard McClean 


^ in. (212) 752-3890 Far (2121755-8785 

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Wise Up and Help China Adopt the Rule of Law 

yjy ASHINGTON — Last week Bill 

Clinton outlined his plans to re- 
new China’s most-favored trading 
privileges. He made the announcement 
to a group of business leaders at the 
White House. Here is what he should 
have said, but didn’t. 

Ladies and gentlemen. I’ve asked 
you here today to be the backdrop for 
my renewal of China's trade benefits, 
because I knew you'd be a friendly 
audience, since many of you do busi- 
ness with China. So let me begin first 
with a message to all of you; 

Wake up, you morons! You are so 
greedy and shortsighted. You profit 
enormously from your dealings with 
China. But you refuse to acknowledge 
that those dealings take place in an over- 
all framework of U-S.-China relations, 
and that framework is now eroding. Yet 

By Thomas L. Friedman 

policy of engagement with Beijing that 
would build bridges where possible, 
draw red lines where necessary. 

Today that consensus has fractured 
into so many pieces I've lost control of 
my China policy. My ability to get my 
way on the biggest issues involving 
Chma is now seriously in question. 

What happened? Heck, what didn't 
happen? Our trade deficit with China 
ballooned to $40 billion, which drove 
many labor activists to conclude that 
China's not the Big Red Menace — it’s 
the Big Wage Menace. They fear that 
millions of Chinese working for 50 
cents an hour are going to take millions 

you won’t lift a finger to help shore it up. 
You ostriches make me sick! 

of U.S. jobs. (They’re actually taking 
ther low-wage countries 

Lode around you. A year ago key 
Republicans and Democrats were forg- 
ing a bipartisan consensus on China, 
healing the rift created by Tiananmen. 
Bob Dole, Newt Gingrich, Warren 
Christopher, Sam Nunn, Bill Bradley 
and I were all giving die same speech 
about China — all advocating a nuanced 

jobs from other 
like Thailand, not us.) 

Then toe Christian right decided to go 
on the warpath because of China's birth 
control policies and its crackdown on 
unregistered evangelical churches. Then 
you had Congress in a tizzy over China’s 
alleged campaign payoffs and arms 
sales. The net result is a crumbling foun- 
dation for our relations with Beijing. 

On top of it all. the old wise men who 

could validate a policy of engagement 
with China are ignored by this pa- 
rochial Congress. Newt may listen to 
Henry Kissin ger, but his troops don t 
They don’t even listen to Newt. They 
might listen to you, though. So here’s 
whar you’re going to do; 

(1) You’re going to stop your pious 
hogwash that everything in China will 
turn out fine if Congress will just leave 
yon alone to malre money there. 

Yes, commerce with China is a nec- 
essary condition for promoting reform 
there, but it’s not sufficient. To be both 
effective and true to our values, we 
need to have an active policy of pro- 
moting more freedom there. 

So you’re going to lobby your con- 
gressmen a nd tell them you understand 
their about China ’s behavior, 

feu that everyone just beating their 
breasts about China won’t change any- 
thing. Things will only improve if busi- 
ness, hitman ri ghts a nd labor activists 
work together, with China, to ensure that 
as it grows econo mi cally, it becomes a 
more open, pluralistic aid law-based 
society . And toe best way to do that is by 
promoting rule of law in China. 

(2) I want the Business Roundtable 
and the Chamber of Commerce to set 

up a S50 million fund, matched by 
Congress, that will bring Chinese law . 
students, judges, lawyers, even pro- 
secutors, to America to complete their * F 
legal education and to gain exposure to s 
our legal system, and to support legal \ 
edu cati on programs in Churia. J 

The Chinese leaders don't oppose t 
these programs, because they know i 
they can't grow their economy without j 
a more rule-of-law-based system. They j 
are just betting that they can institute { 
rale of law in every area except politics, j 
Fine, I’ll take that bet. i 

I know this focus on rule of law * 
won’t change toe mood in America j 
toward China overnight. Some groups « 
here need a big enemy like China, and 1 
Lord knows, China makes it easy for 1 
them. But for those who really are, 
interested in making a difference there j 
— not just in moral preening — this * 
rale of law approach could be toe basis, i. 
for building a new consensus. It's good J 
for human rights, it’s good for bnsi- i 
ness, and it's good for China. ■ 

Without a new consensus, this re- j 
latioaship is going to go right over a t 
cliff, and it’s going to take your business ) 
and my foreign policy along with it. 1 
The New York Timer. H, 

The Greening of Governments, Businesses and Communities: 

G LAND, Switzerland — A 
1,000-day countdown to 
the dawning of our next mil- 
lennium started last month. 
People are fond of such math- 
ematical exactitudes of. time. 
They provide reassuring points 
of reference amid the generally 
chaotic cycles of existence. 

But what will we really be 
signifying with the parties in 
glitzy hotels and the firework 
displays that will greet the so- 
called thir d millennium? 

If the occasion is to mean 
anything at all. it should bring 
recognition of past follies and a 
resolve to treat ourselves and 
every other species on Earth 
much better in toe future. 

That is why the World Wide 
Fund For Nature decided to 
launch a Living Planet Cam- 
paign. It is focused on 2000 to 
encourage by then as many 
commitments from as many 
governments, businesses and 
communities as possible to pro- 
tect, preserve, revive and sus- 

B j Claude Martin 

tain through the third millen- 
nium the natural heritage that 
has suffered such destruction in 
the last century. 

Such commitments we call 
Gifts to the Earth. There have 
been many since toe campaign 
began. Some have been much 
needed financial support for 
conservation work from char- 
itable and voluntary organiza- 
tions. The Russian Mezhkom- 
bank, for example, pledged half 
a million dollars. 

The world’s largest private 
forest owner. AssiDoman, has 
agreed to sustainable manage- 
ment and harvesting of all its 
forests. Unilever, the biggest 
producer of frozen fish in the 
world, has undertaken to work 
with WWF in developing sus- 
tainability rules for the harvest 
of the oceans. 

Germany's AEG company 
has promised ro help combat 
climate change caused by burn- 

ing oil, coal and other fossil 
fuels by making its household 
electrical appliances 25 percent 
more energy efficient. 

In Denmark, toe Best West- 
ern hotel group has given itself 
three years in which to reduce 
its energy use by 25 percent. 

Some governments, too, 
have recognized toe need for 
dramatic action to protea toe 
environment, especially its 
most valuable and threatened 

The Living Plana Campaign 
began with an undertaking from 
Yakutia, a republic within toe 
Russian federation, to create 
one of the largest protected 
areas in the world — 70 million 
hectares (24 percent of its wild- 
land), an area roughly twice the 
size of Germany. 

The Republic of Georgia 
pledged to place more than 20 
percent of its territory under of- 
ficial protection. 

Georgia was joined by Mon- 
golia, whose government 
pledged protection for 49 mil-, 
lion hectares (30 percent of its 
land area) by 2000. 

Significant as these promises 
are in environmental terms. 

they are perhaps symptomatic 
of something else. Georgia, 
Mongolia and Yakutia are little 
known in the wealthy West, 
which, with toe honorable ex- 
ceptions of Switzerland and 
Florida, has yet to make serious 
practical commitments at gov- 
ernment level to the campaign. 

Moreover, they are countries 
formerly subject to a . socialist 
regime that withdrew from the 
people all responsibility for 
their lands. Until toe collapse of 
the Soviet Union, citizens could 
not take possession of their nat- 
ural heritage, let alone show 
their strong emotional ties to it 

Now that such feelings can 
be openly expressed, what be- 
comes obvious about them is a 
desire to preserve that heritage 

and help create a new age in 
which nations can develop eco- 
nomically but at the same time 
avoid toe careless environmen- 
tal destruction that has char- 
acterized so much development 
in the West. j 

Perhaps we in the West hate 
been made blasS by our freedojn 
to exploit our natural resources 
and those of other countries 
over which we have held sway. 
If we can rediscover the deeper 
cultural and natural values of 
our civilization, as forma So- 
viet satellites have done, we 
really will have something to 
celebrate as the old millennium 
gives way to the new. 

Then the fireworks as the 

Jan. 1, 2000. will not be jt 
another contribution to air and 
noise pollution. 

The writer is director-gen- 
eral of WWF International. He 
contributed this comment to the 
International Herald Tribune i 

The Seas, It Turns Out, Can Indeed Be Fouled and Blighted 

past 20 years about 10 
percent of coral reefs world- 
wide have become dysfunction- 
al. Another 30 percent are sig- 
nificantly stressed. 

Some call coral reefs the rain 
forests of the sea, a tribute to toe 
enormous richness of life and 
imperiled nature of both. To call 
attention to toe plight of the 
reefs, the U.S. Department of 
State has declared 1997 Inter- 
national Year of the Coral Reef. 

Around toe world, the story 
of coral reefs is a story of human 
actions causing dire con- 
sequences often long distances 
from toe scene. 

It is popular to say that we 
live on a small planet Just how 
small can be seen in toe Carib- 
bean Sea, where the World’s 
End Reef is in peril because 

By Sylvia Earle 

moun tains ides are eroding hun- 
dreds of miles away in 
Venezuela. Loose soil from 
road cuts and farms in the moun- 
tains comes down toe Orinico 
River and spills into the sea, 
where it smothers once thriving 
coral reefs and feeds a long 
green plume of toxic algae. 

In Florida, some yacht own- 
ers carelessly flush their toilets 
into port waters; many golf 
course managers dump onto the 
fairways tons of excess nitrogen 
fertilizers, including a large 
percentage that will ultimately 
wash into the oceans; de- 
velopers of inland properties la 
silt loose into tributary waters. 
As a consequence, reefs suffer. 

The much admired corals in 
John Pennekarap Marine Park, 

off Key Largo, are often now 
draped with hunks of fest-grow- 
ing algae. The algae and sed- 
iment deprive the corals of light 
and oxygen may be linked to 
recent outbreaks of diseases 
such as "black band” and 
"white plague IL" 

The U.S. Commerce Depart- 
ment looks at this ugly picture 
and sees tourist dollars disap- 
pearing. Far more important, 
though, is the disappearance of 
the reefs themselves. 

What toe situation really 
calls for is a basic reorientation, 
a sea change of attitude, about 
bow landlubbers and ocean- 
going people alike treat toe viral 
natural systems beneath the sur- 
face of the oceans. 

Living coral reefs are com- 

Mr. Arafat, Release Mr. Kuttab 

B OSTON — Imagine a 
U.S. president having toe 
head of C-Span thrown in jail 
because he broadcast sessions 
of Congress in which the pres- 
ident was criticized. That is a 
rough translation of what has 
just happened in Yasser Ara- 
fat’s Palestine . 

The victim of Mr. Arafat's 
displeasure is Daoud Kuttab, a 
leading Palestinian journalist 
He is being held incommu- 
nicado in a prison in Ramal- 
lab, in the West Bank. 

I have known Mr. Kuttab 
for years. Like other foreign 
reporters and diplomats. I re- 
.spect him for his courage and 
honesty. The first concern has 
to be for his safety. Others 
imprisoned by the Palestinian 
Authority have been brutal- 
ized, and killed. 

Bui toe broader issue is toe 
nature of toe Palestinian pol- 
ity. As president of toe Au- 
thority, Mr. Arafet is intoler- 
ant of criticism and intemper- 
ate in his disregard for basic 
standards of freedom. His per- 
formance is blighting Pales- 
tinian hopes, and the Kuttab 
case is a telling example. 

Mr. Kuttab has written un- 
flinchingly about abuses of 
power by Israeli occupation 
authorities and by the new Pal- 
estinian regime. He was a 
columnist for Al Quds, an Ar- 
abic paper in Jerusalem, until 

By Anthony Lewis 

the publisher gave in to an Ara- 
demand ‘ 

fat demand in 1994 and fired 

him. Last year the Committee 
to Protect Journalists gave him 
its International Press Free- 
dom Award for his bravery. 

He has been running a pro- 
ject much like C-Span at an 

independent broadcasting sta- 
tion, Al Quds Educational 
Television. It carries live, un- 
cut broadcasts of the Pales- 
tinian Legislative Council. 
The U.S. Agency for Inter- 
national Development pro- 
vided a $25,000 pilot grant 
and it has European support 

The Legislative Council, in 
its short life, has been remark- 
ably independent Its mem- 
bers frequently criticize cor- 
ruption in toe Authority and 
abuses of human rights. 

The Palestinian on the 
street could not read about that 
criticism because Palestinian 
newspapers were afraid to an- 
ger Mr. Arafat by printing it 

When the verbatim broad- 
casts started, they drew a wide 
audience. People watched 
through four hours of often 
prolix sessions. Soon a curi- 
ous thing happened. When Al 
Quds television broadcast a 
council session at which Mr. 
Arafat was criticized, another 
signal covered the screen with 
a black rectangle. 

The jamming came from the 
Authority’s official Palestin- 
ian Broadcasting Company. 
So Mr. Kuttab found when be 
was invited to check in the 
PBC control room. He was 
warned not to say anything. 

Last Tuesday, May 21, The 
Washington Post carried a sto- 
ry about the jamming. That 
night Mr. Kuttab was tele- 
phoned by the Ramallahpo- 
lice chief. Colonel Fins 
Ameleh. and asked to come in. 
He lives in Jerusalem, outside 

the control of the Authority, 
but be went anyway — and 
was arrested. 

The next day his family 
tried to find out where be was. 
So tod U.S. consular officers, 
who inquired because he is an 
American citizen. Colonel 
Ameleh and other Palestinian 
officials denied for hours that 
he was under arrest Finally 
they admitted he was. 

Mr. Kuttab 's lawyer and the 
U.S. consul general. Edward 
Abingtoo. were able to visit 
him on Wednesday. But the 
next day his wife and three 
children were turned away. 
Colonel Ameleh said he had 
orders from Mr. Arafat’s of- 
fice to la no one visit him. Mr. 
Kuttab started a hunger strike. 

On what charge was he 
held? After two days of si- 
lence, officials said he would 
be charged with violating toe 
"journalism law.” No one is 
sure what that means. 

’Hie whole affair, with its 
arbitrariness and mendacity, 

■ reeks of toe view that it is l&se- 
majesfe to challenge Mr. Ara- 
fat- Palestinians deserve bet- 
ter. They want democracy. 
The Legislative Council’s 
spirited criticism of corruption 
shows that, and so does the 
public response to Mr. Kut- 
tab’s legislative broadcasts. 

But more is at stake. Such 
action costs Mr. Arafat dearly 
in the respect be needs to ne- 
gotiate a viable Palestinian 
homeland — respect in the 
world, and in Israel. It is es- 
sential for him. as for Pal- 
estinian hopes, to release 
Daoud Kuttab. 

The New York Tunes. 

posed of millions of tiny, 
ten tacled animals and cal- 
careous plants that secrete a 
bulwark of calcium carbonate. 
When healthy, these stony 
structures are a natural shelter- 
ing habitat for fish, crabs, lob- 
sters and thousands of other 
marine species. They also shel- 
ter all members of the h uman 
ties who live near toe ocean- 
>nt, taking toe brunt of storm- 
whipped waves. 

The state of Florida recently 
adopted a management plan for 
toe Florida Keys National Mar- 
ine Sanctuary imposing water 
controls and zoning restrictions 
on some on-land activities, in- 
cluding some restriction on toe 
now common use of cesspools. 
This* is a good plan for both 
economic and environmental 
reasons, but some oppose it. 

The fight over the plan is just 
ope example of toe growing con- 
flicts arising from pressures that 
humankind is putting on natural 
systems. The list of activities 
that threaten the oceans is long 
— developers who <fam rivers, 
destroy mangrove tree lines or 
fill in sea grass beds, shipowners 
who dump chemicals and oil, 
marina managers who discharge 
sewage into toe sea. fishermen 
who take too much wildlife from 
toe sea. farm operators who al- 
low excess agri-chemicals to 
flow in. 

Only a generation ago, a mar- 
ine scientist described the 
oceans as “the great matrix that 
man can hardly sully and cannot 
appreciably despoil." Back then 
it was not imaginable that hu- 
mankind would put holes in toe 
stratospheric ozone layer, letting 

through" radiation that damages 
fish eggs and larvae and kills 
plankton. It was not imaginable 
that pollution-caused global cli- 
mate changes could lead to an 
accelerated rise in sea level 

The comforting notion that 
die sea can withstand any and 
all assaults is losing out to 
growing awareness that we are 
stressing the ancient ocean sys- 
tems that support us. 

The sea shapes climate and 
weather, stabilizes tempera- 
tures, generates oxygen and 
provides more than 95 percent 
of the planet's living space — 
toe biosphere. It is in our interest 
to stop doing harm to life in toe 
seas, and this is the message that 
governments hope to convey 
with their 1997 campaign fo^ 
reefs and a planned follow- ppr 
campaign for 1998, Internation- 
al Year of the Oceans. 

Finally, a cautionary tale: ; 

Some years ago, construction 
companies in Sri Lanka 
dredged up hard calcium reefs 
as building material for resort 
hotels on the beaches. Each yehr 
since then, more of toe beach- 
front is eroded by storms that 
come roaring through gaps in 
the reef bulwark. The way 
things are going, toe hotels 
made of corals will someday 
fall into the ocean. 

The writer, former chief sci- 
entist at the National Oceanic 
and Atmospheric Administra- 
tion. is national representative 
for SeaWeb. a marine conser- 

vation initiative created by Tk 

Pew Charitable Trusts, stc 

contributed this comment to the 
International Herald Tribune'. 




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1897: Congo Rebels 

BRUSSELS — The following 
details are forthcoming with 
reference to toe military revolt 
in the Congo State, where fif- 
teen hundred native troops, 
forming part of toe Baron Dha- 
nis’s expedition, mutinied. Bar- 
on Dhanis hopes, with toe help 
of 1,700 troops who have re- 
mained loyal and reinforce- 
ments from other garrisons, to 
cut toe rebels’ retreat. The con- 
flia is expected to be a long one. 
but it is hoped, in the interests of 
civilization, that Baron Dhanis 
will defeat the mutineers. 

tried on charges of inciting amijtfr-V i, 
disorders. The main charges afc ~ '' 
based on an article by M. Vail- 
lant-Couturier. published ini a 
Communist paper circulated 
among army conscripts. M. 
Cachin. the managing-direetdr, 
is also being held responsible, it 
is alleged that the article incites 
the conscripts to disobedienie 
and indiscipline. i 

F ifty yeaoei_ 
the U 

^ 'ogicai that the 
j f= the return of 
t-ere can be no 
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Josef Jested 

194/ : Looted Artwork 

1922: Inciting Disorder 

PARIS — The French Govern- 
ment sprang a sensational sur- 
prise on toe Chamber of Depu- 
ties by authorising the Public 
Prosecutor to demand toe lifting 
of toe Parliamentary immunity 
of two Communist party hench- 
men in order that they may be 

BERLIN — Six valuable pairit- 
uigs. including a Van Dyck, 
which were purchased by toe 
American Military Govern- 
ment from a German firm (o 
decorate the offices of General 

^ ci “ s P‘ Clay, have betin 
found to be Nazi loot and wiiitie 

restored to the Netherlands. The 
Military Government paid 

S5?Lmw' 66,400 reichsmarks^." 
1^0,640) for toe pictures, which 
were purchased in August and 
October 1945, at Baden, in the 
French Zone of Germany. 



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Gephardt- Gore Debate: 
Good for Democrats 

WO 3 ^ 

i r£4»e. 

By Robert Kuttner 

VlcsePresVient Ai Gere. 

taLCbina^ilnUnrf future 


Young \ Sick, Strung Out 
And Middle Class 

By Brent Staples 

rr the “New Democrat'* 
Clinton administration has em- 
braced some unlikely policies 
dear to old Democratic constitu- 
encies, notably trade unions and 
the poor. The shift involves both 
politics and principle, and it sug- 
gests that the contest over the 
party’s future is far from over. 
First, to great Republican an- 
noyance, the White House 
denied governors the right to turn 
public welfare over to private 
contractors. Next, the adminis- 
tration ruled that the federal min- 
imum wage covers welfare re- 
cipients working on workfare 
projects. This produced more Re- 
publican indignation. 

Several factors are at work 
here. For starters, these policy 
, decisions make legal and prac- 
f deal sense. 

While government reasonably 
can use contractors for some ser- 
vices, government shouldn’t 
contract out basic public admin- 
istration. Texas welfare author- 
ities wanted to give corporate 
contractors financial incentives 
. that based their own earnings on 
denial of benefits to needy 
people. Even Congress did not 
; intend to go that far, and Pres- 
ident Bill Clinton said so. 

Similarly, several studies 
show that a shift from welfare to 
work often reduces overall living 

standards. It costs money to dress 
for a job, to get to a job and to pay 
day care costs. Why exempt wel- 
fare recipients, of all people, 
from the minimum wage? If the 
Republicans explicitly proposed 
that goal in legislation, ibe debate 
would be instructive. 

Even more illuminating are 
the politics of these decisions 
within the Democratic Party. The 
labor movement lobbied hard on 
both policies. Labor has more 
leverage than usual, thanks to the 
rivalry between Vice President 
AI Gore and Dick Gephardt, the 
House Democratic leader, for the 
presidential nomination in 2000. 

Mr. Gephardt is closer to the 
unions than Mr. Gore is on most 
Issues, so Mr. Gore is playing 
calch-up. For example. Mr. Gep- 
hardt soon will propose a Demo- 
cratic alternative to the budget 
deal worked out by the Repub- 
licans and the White House. Mir. 
Gephardt's amendment will have 
fewer program cuts, more tax re- 
lief for the middle class and less 
for the affluent. 

Mr. Gore and Mr. Gephardt 
arc also on opposite sides on sev- 
eral upcoming trade Issues. 
These include new presidential 
negotiating authority to expand 
NAFTA, most-favored-nation 
trading status for China and the 
terms of China’s entry into the 
World Trade Organization. Here 

■ ■ ■ 

again, Mr. Gephardt's position is 
closer to labor’s. 

Within these constraints, the 
vice president has been keen to do 
what he can for the unions. On the 
question of whether minimum 
wage applied to workfare and on 
whether to grant Texas its waiver, 
Mr. Gore sided against his close 
ally, the White House domestic 
policy chief Bruce Reed, a lead- 
ing “New Democrat.” 

Of course, there is more to 
these issues than presidential 
politics. There is, in fact, a set of 
principled debates. 

Should needy people ever be 
compelled to take jobs at less than 

minim um wage? Should nations 
that participate in the global trad- 
ing system be required to respect 
basic laws of property rights and 
human rights? Should the federal 
budget add tax breaks for the 
middle class or for the well-to-do 
•— or maybe put off tax breaks 
until the budget is balanced? 

On these and similar issues, 
die Clinton White House often 
has been closer to the Republican 
position. And if Mr. Gore is mov- 
ing back in the direction of the 
traditional Democratic Party, it is 
not just because of election year 
IOUs co unions but because the 
Democratic Party base, whose 

support Mr. Gore needs, is still 
mostly liberal. 

Mr. Gore surely would prefer a 
coronation to a catftght, but his 
rivalry with Mr. Gephaidt could 
be constructive as well as di- 
visive. Mr. Gore's role in point- 
ing the White House toward a 
more vigorous defense of unions 
and the poor, like Mr. Gephardt’s 
battle for budget priorities, 
kindles a necessary debate over 
the soul of the party. 

America, after all, needs one 
Republican Party, not two. This 
debate can only be good for the 
Democrats and the country. 

0 Sober: Kuantr. 




Fouled and Bli« 

’The Middle East - 

Regarding “A Brutal Letdown 
>for Palestinians Who Expected 
Freedom” (Opinion, May 23) by 
: Fawaz Turki : 

n. Disappointment in Yasser Ara- 
“fat is widespread in the homeland 
.^and in the diaspora. Palestinians 
see a leader in whom they placed 
their trust condoning the suspect 
dealings and excesses of his 

'■■■ No wonder Mr. Arafat does 
not allow free speech in the ter- 
ritories he controls and is quick to 
lock up anyone who dares chal- 
lenge him openly. Palestinians 
have deep aspirations for freedom 
after long years of Israeli occu- 

pation. Those in power today, 
would be wrong to assume that the 
people are going to tolerate, 
forever, the improper conduct of 
their own rulers. 

If Mr. Arafat wants to be re- 
membered not only as a fighter for 
land but also as a fighter for 
justice and freedom, he should 
lose no time in establishing decent 
public values. 


Montreux, Switzerland. 

Regarding “ Arab Sellers of 
Land Are ‘Traitors,' Arafat Says" 
(May 22): 

Dan Naveh, Israel’s cabinet 
secretary, uses the term "anti- 
Semitism” in referring to the Pal- 

estinian Authority’s decision to 
impose the death penalty on Arabs 
who sell land to Jews. 

As an Arab — and thus as a 
Semite — I find it interesting that 
Arabs can be accused of anti- 
Semitism. More concise language 
is needed. 


Pnnishmg the Passenger 

Regarding “Abuse at 35J000 
Feet : Airlines Take Aim at Rowdy 
Passengers ' * (May 2): 

Has no one suggested to these 
deregulated airline companies 
that perhaps the answer to their 
problems just might be to increase 

their passenger service rather than 
their security and legal protec- 
tion? Put the money into more 
sandwiches and more personnel 
rather than into lawyers' pockets? 
Instruct staff on how to use their 
computers and make intelligible 
announcements rather than how to 
wrestle passengers to the ground? 
listen to passenger suggestions 
and complaints before tilings get 
out of hamd? 



Trophy’s Whereabouts 

I was surprised to read that O. J. 
Simpson did not know the where- 
abouts of his Heisman Trophy, 

which he received as a college 
football player (“Where's Heis- 
man Trophy? Don't Ask 
Simpson.” May 1 7). I know where 
it is, or at least where it was last 
month; at the University of South- 
ern California. 

An article in the April 28 edi- 
tion of Sports Illustrated reads 
in pait: “En route to his office 
every day, USC athletic director 
Mike Garrett passes by display 
cases containing his 1965 Heis- 
man Trophy and the Heismans 
won by three other Trojans tail- 
backs: O.J. Simpson (’68), 
Diaries White (’79) and Marcus 
Allen (’81).” 



N EW YORK — Heroin came 
to my high school during our 
senior year — not in the hands of 
poor kids from the projects, but in 
needles dangling from the tour- 
niquet-tied arms of guys with hot 
rods, lavish wardrobes and the 
best orthodontics their parents 
could buy. The heroin boys were a 
cult. They huddled together at 
lunch, nodding out on their feet, 
wiping noses that ran perpetually 


even in summer. In the evenings, 
they idled in side streets, passing 
needles back and forth, before 
driving home to immaculately 
kept houses with two, sometimes 
three cars in the driveways. 

This was the end of the 1960s in 
a working-class city near Phil- 
adelphia. We were 90 minutes 
from New York City's Greenwich 
Village, where a child of suburban 
affluence named Lou Reed had 
become a star singing “Heroin," 
a song of worship. He sang while 
pretending to tie off his arm and 
inject the drug. As the lyrics said, 
he was happiest close to overdose, 
when he was “closing in on 

Federal officials say the 
middle-class romance with heroin 
is the newest trend in American 
drug use. But this is hardly new. 
Heroin has aiways been a 
plaything of the moneyed classes 
who could pay for addiction with- 
out turning to crime or becoming 
ragged and homeless. The myth 
that heroin was largely confined 
to tiie lower classes helped it to 
spread undetected into the sub- 
urban middle class and beyond. 
Stand outside the right methadone 
clinic and you will see men in 
business suits picking up their 
heroin substitutes, trying to keep 
their habits in check. 

Many middle-class teenagers 
flirt with heroin as a way of val- 
idating hipness and urban authen- 
ticity. Go any night to the Alphabet 
City area of New Yoik's Lower 
East Side and you see cherubic, 
well-fed teenagers out cm urban 
safari, trawling the streets for 
drugs. Will their parents notice 
when they nod out at the table? Or 
will they deny the obvious, hiding 
behind the belief that junkies come 
only from "bad” neighborhoods? 

In the hip world of downtown, 
heroin has long since traveled in 

the equivalent of the snuff box, 
with hosts asking guests if they 
want u snon. High-fashion mod- 
els are only the latest subscribers, 
using heroin first because ii sup- 
presses appetite, helping them 
stay thin. 

The drug became a common 
accessory on photo shoots, and it 
was only a matter of lime before it 
became the subject of the pho- 
tographs themselves. “Heroin 
chic,” as the movement came to 
be called, required a wan, be- 
draggled look that romanticized 
addiction and down-and-outness. 
The concept snowballed as mod- 
els and photographers emulated a 
look that magazines wanted and 
that many in the business were 
personally invested in. 

Photographers blamed the mod- 
eling agencies for the look. The 
agencies blamed the photograph- 
ers, stylists and editors — with all 
sides insisting that drug addiction 
was not part of the scene. The 
industry stayed in denial until the 
death by overdose, a few months 
ago. of Da vide Sorrenti. a 20-year- 
old photographer with prestigious 
clients like Detour. Interview, Sur- 
face. Ray Gun and I-D magazines 
and the Japanese fashion compa- 
nies Hysteric Glamour and Mat- 
suda. His photographs, portraying 
pale, thin, somn ambulant models, 
have been widely imitated. Drug 
users tend to recruit others. It is 
reasonable to assume that Mr. Sor- 
renti did as well. 

Magazine editors might have 
remained in denial if not for Mr. 
Sorrenti 's overdose and the bad 
publicity that followed. The ed- 
itors are now feverishly at work, 
and by late fall “heroin chic” 
layouts will be replaced by pic- 
tures that are said to look healthy 
and wholesome. But before 
heroin chic returns to the shad- 
ows, we should reflect on its les- 
sons. The first is that addiction is 
a phenomenon that transcends 
boundaries of class, race and in- 
come. The second is that it cannot 
be contained and will swallow 
whole industries if left un- 
checked. The third and most im- 
portant lesson is that the fashion 
business will accomplish nothing 
if it stops at “freshening up” its 
photographs. The real work lies in 
changing the culture of the busi- 
ness, rooting out addicts, suppli- 
ers and proselytizers. 

The New York Tunes. 

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In Tomorrow s Newspaper 
Don’t miss the Special Report on 

j^TfeAfarsbaU Plan 

F ifty years ago, on June 5, 1947, in a commencement address at 
Harvard University, then Secretary of State George C. Marshall 
advanced the idea of a self-help project for Europe, financed by 
the United States, that would aid in the economic, technical and 
social recovery of a continent that lay in ruins after a devastating war. “It 
is logical that die United States should do whatever it is able to do to assist 
in the return of normal economic health to the world, without which 
there can be no political stability and no assured peace,” he said. Thus 
was bom the Marshall Plan, one of the most successful ideas of con- 
temporary history. 

On May 28th, as the 50th anniversary approaches, the International 
Herald Tribune will publish a Special Report on “The Marshall Plan and 
its Legacy” The report marks a different kind of anniversary — not of 
war and suffering, invasions or bomb dropping — but of the supremacy 
of ideas and intellect and the start of a process that literally changed the 

. Among the distinguished contributors: 

U.S. Secretary of State Madeleine Albright 

Stephen E. Ambrose 

Josef Joffe 

Michel Crazier 

Art Buchwald 

Flora Lewis 

Joseph Fitehett 

Barry James 

Look for this Special Report in tomorrow's newspaper. 



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The global partnership of advertisers, agencies and medio 

advertising. your right to 



Turkish Generals Purge 
Some Mamie Officers 

The Associated Press 

ANKARA — Turkey’s generals on 
Monday once again rebuked Prime Min- 
ister Neeme din Erbakan for his Islamist 
policies, announcing a purge of pro- 
Islamic officers. 

It was the latest clash between die 
military, which considers itself the 
guardian of Turkey's secular system, 
and die governing Welfare Party, which 
has been seeking to put a greater Islamic 
stamp on Turkey. 

The generals summoned Mr. Erbakan 
fbra six -hour closed-door meeting of the 
Supreme Military Council, after which a 
decree signed by Mr. Erb akan an- 
nounced that "necessary decisions were 
taken regarding the disciplinary and eth- 
ical si tuations of some personnel. " It did 
not elaborate, but the measures re- 
portedly included the expulsion of sev- 
eral officers considered pro-Islamic. 

Also on Monday, 39 members of Mr. 
Erbakan's party were indicted on charges 
of trying to incite an uprising a gains t the 
army, which is punishable by 30 years in 
prison. They were indicted for perform- 
ing in a play depicting Islamic radicals 
struggling with a secular army. 

“Turkey cannot not be turned into 
Iran or Algeria." the indictment said 

“Whoever tries to do this will be pun- 

The NTV private television channel 
said all the council members, including 
Mr. Erbakan, signed a decree dismissing 
several officers charged with having 
links to pro-Islamic groups. 

It did not give a figure, but Turkish 
newspapers said Monday that the cases 
of nearly SO such officers would be 
reviewed at the council meeting. 

The Supreme Military Council groups 
the prime minister, the defense minister 
and the top IS generals. 

Newspapers said Mr. Erbakan, whose 
Isl amiz ing policies have angered the 
military, was headed for another con- 
frontation with the military, who have 
asked him to retract his Islam-oriented 
policies and act to protect secularism. 

Mr. Erbakan so far has displayed a 
defiant attitude. But his resistance has 
angered members of his center-right co- 
alition partner, the True Path Party. Last 
week four True Path deputies resigned to 
push their leader. Deputy Prime Minister 
Tansu Ciller, to leave the coalition. 

The resignations left the government 
with 275 seats in the 550-member Par- 

FRANCE: Chirac Blundered on Timing 

Continued from Page 1 

li ament, increasing speculation that the 
government would soon collapse. 

Jaapct BrinWHir AmiUcd Pro* 

The National Front’s Jean-Marie Le Pen at his headquarters near Paris. 

selves, and contained a ta cti ca l hitch: 
With Mr. Juppe gone, it focused all the 
political responsibility in the second 
round on the president, this time without 
an nil-suffering front-man to absorb his 
part of the damage if things went 

Having done something not terribly 
smart in public by calling die election. 
Mr. Chirac clearly lost apart of the tissue 
that bound him to France, an element of 
the organic and instinctive relationship 
between president and country that com- 
mands the respect of peers, including 
President Bill Clinton and President 
Boris Yeltsin, with whom he will meet 
Tuesday in Paris to talk about the future 
of European security and NATO. 

On the level of policy. Mr. Chirac’s 
election left France and its partners with 
two unpromising alternatives: a Social- 
ist-Communist government unclear 
about its relationship to Europe, a com- 
mon currency or NATO, and wed to a 
program of social entitlements at home; 
or a weakened and discredited conser- 
vative government of diminis hed loy- 
alties, reproaching the president, and 
without a mandate for change. 

The president has more than four 
years to run in his term, but it would 
seem to be with shortened leverage and 
political esteem. Painfully, France's 


Polish Right Seeks to Amend 
Constitution After Low Vote 

The Associated Press 

WARSAW — Poland's rightists 
vowed Monday to seek amendments to 
the nation's first post-Communist con- 
stitution, saying that a low turnout in the 
constitutional referendum signaled pop- 
ular dissatisfaction with the charter. 

Less than 40 percent of Poland’s eli- 
gible 28 million voters took part in the 
referendum Sunday, about 25 percent 
below projections. 

Official results are expected by Tues- 
day, but exit polls showed that the con- 
stitution received approval by the re- 
quired majority: 57 percent favoring the 
document, 43 percent against, with a 
margin of error of just over Z percent. 

“We are going to return to the issues 
after the fall elections," said Janusz To- 
maszewskt the deputy Solidarity chair- 
man. "We will at least try to amend this 
document, if not change it completely." 

Solidarity criticized the charter pre- 
pared by the leftist-dominated Parlia- 
ment because it does not state that a 
universal set of values, is superior to any 

law maria by men. Solidarity also 
warned a ban on abortion and an explicit 
condemnation of the Communists for 
human rights abuses during their rule. 

But the right, locked out of Parliament 
in 1993 elections, will need to win con- 
trol of Parliament in elections scheduled 
for September to make any amendments, 
which require a two-thirds vote. 

The new charter commits the country 
to market economy and private own- 
ership, doing away with the last rem- 
nants of the Communist system and pre- 
paring Poland for its goal of European 
integration. It guarantees personal free- 
doms and provides for clear division of 
powers between the president, the gov- 
ernment and the Parliament. 

Backers of the new charter also con- 
ceded that the low turnout might make it 
easier to attack the new constitution. 

“I admit I am surprised by the low 
turnout," said President Xleksander 
Kwasniewski, who led Parliament’s 
constitutional drafting committee for 
two years before taking office. 

Croatian Leader Wants 3d Term 

would continue "as long as Dublin interferes in Ulster’s 
affairs’ ’ and that there would be no warnings. (Reuters) 

ZAGREB, Croatia — President Franjo Tudjman will 
seek a third term in elections June 15, the Croatian press 
reported Monday. 

A pro-government daily, Vjesnik, predicted that Mr. 
Tudjman would get 57 percent to 62 percent of the vote in 
the three-way contest with Zdravko Tomac, head of the 
formerly co mmunis t Social Democratic Party, and VI ado 
Goto vac of die Croatian Social-Liberal Party. 

Separately, Mr. Tudjman said in an interview published 
Monday that repatriating all Croatian Serbs would be "in- 
sane." About 180,000 Serbs fled Croatia after their sep- 
aratist republic was overrun by government forces in 1995, 
and the few who stayed or have returned have often been 
targets of violence. (AFP) 

Tirana Hospital Replies to Attack 

TIRANA, Albania — Hundreds of doctors and nurses at 
the nation's best hospital went on strike Monday, de- 
manding protection after a squad of Albanian special forces, 
angry that one of their members had died there, attacked the 
facility and wounded two staff members. 

The attack Sunday at the Tirana mili tary hospital was 
carried out by 30 men who arrived in two armored personnel 
carriers and dozens of vehicles. The special forces are 
nominally controlled by the Interior Ministry. (AP) 

Protestant Group Warns Dublin 

Slovak Foreign Minister Quits 

DUBLIN — Protestant extremists in Northern Ireland 
claimed responsibility Monday for an abortive bomb attack 
on an Irish town and threatened to carry out more such 
bombings without warning against the Dublin government 
The threat was made in a call to a Belfast television 
station by the Loyalist Volunteer Force, a recently formed 
group of extremists fighting to maintain British rule in 
Northern Ireland. 

The Loyalist Volunteer Force said the bomb it planted in 
Dundalk. 8 kilometers (5 miles) from the Northern Ireland 
border, failed to explode Sunday because of "technical 
difficulties" that had now been resolved. It said that attacks 

BRATISLAVA. Slovakia — Foreign Minister Pavol 
Hamzik resigned Monday, the Foreign Ministry announced. 
His decision followed a referendum over the weekend on 
whether to join the North Atlantic Treaty Organization that 
was widely boycotted and then declared void Monday by 
the electoral commission. 

The commission said the ballots should have included 
four questions, three of them on the alliance and the fourth 
on changing the constitution so that the head of state is 
elected by universal suffrage in the future. 

Mr. Hamzik, who became foreign minister in August, had 
been trying to improve Slovakia's image in the face of 
criticism by Western leaders concerned with the state of 
democracy in Slovakia. ( Reuters . AFP) 

coming from the traditional parties, was 
of glass in a 

its clarity, a jagged piece 
muddy nooL 

The Socialists, who initially promised 
to create 700,000 new jobs, cut the work 
week to 35 hours for 39 hours’ pay and 
block fhe privatization of state enter- 
prises. replaced the specifics with for- 
mulations short on detail in their first 
statements after the results were in. The 
approach had the appearance of a party 
that seemed to think it could do best by 
saying less and less. 

This had been the specialty of the 
government parties, promising change 
toward a more open economic climate, 
but never without adding a reassuring 
label such as change within continuity, 
or freedom plus solidarity, or capitalism 
with a moderate touch. During the four- 

i- z. 4L. n 

surge" to "the shared surge." 

Short of a profound overnight 
makeover of the majority’s tactics or a 
halt to the left’s backpedaling toward the 
middle, the last week of the campaign 
seems likely to be both increasingly 
nasty at the edges and, at the middle, 
increasingly evasive of substance. Vot- 
ing in an election they did not seek, the 
Bench were resolving little and unset- 
tling much. 


EMU: Plans for Single Currency Among the Losers in French Vote 


By Muriel Spark. 160 pages. $22. 
Houghton Mifflin. 

Reviewed by Michiko Kakutani 

H ERE is the recipe for a typical Mur- 
iel Spade novel: Take a self-enclosed 
community (of writers, schoolgirls, nuns, 
rich people, etc.) that is full of incestuous 
liaisons and fraternal intrigue; toss in a 
bombshell (like murder, suicide or be- 
trayal) that will ricochet dangerously 
around this little world, and add some 
allusions to the supernatural to ground 
these melodramatics in an old-fashioned 
context of good and evil. Serve up with 
crisp, authoritative prose and present 
with "a light and heartless band." 

At her best. Spark has used this recipe 
to produce some wonderfully comic- 
metaphysical entertainments, novels like 

"Memento Mori." "The Prime of Miss 
Jean Brodie" and "The Comforters,'’ 
which are not only wicked and winy, but 
also resonate disturbingly in the reader’s 
mind Unfortunately, in her weaker nov- 
els — among which her latest, “Reality 
and Dreams,” must be counted — these 
same ingredients result in spindly, at- 
tenuated fictions, peopled by cardboard 
crackpots, pulled hither and thither like 
puppets by their serenely tyrannical cre- 
ator. In these books, the author's twisty, 
improbable plots feel implausible and 
contrived; her poised authorial manner, 
peremptory and pinched. 

In terms of simple plot mechanics, 
"Reality and Dreams" recalls several 
earlier Spark novels like ’‘Loitering 
With Intent," “The Comforters" and 
"The Only Problem," in which par- 
allels are drawn between art and life, 
between the fictional dilemmas 


By Robert Byrne 

I N the sharp Kercs Attack with 6 g4 
against the Scheveningen Variation of 
the Sicilian Defense, the majority opinion 
is that White should follow 6—h6 by the 
immediate7g5orby7h4and8Rgl first 
The alternative that Bologan used in this 
game, 7 h3, takes a less hurried course. 

Supposedly, after 10..Nd4 1 1 Bd4 e5 
12 Be3 Be6, Black has the slightly su- 
perior prospects because, while the 
white king bishop has no other function 
than to protect the e4 pawn, die black 
queen bishop bears on the queenside 
where white will castle. 

After 13..Jlc8. Yermolinsky 
threatened a sacrifice of rook for knight 
with 14.JRc3!? 15 be Qa5 to break up 
the White king position and thus create 
the conditions for a mating attack. His 
hand forced, Bologan sailed in with 14 
Nd5, after which the exchange 14..J3b5 
15 ed protected the d6 pawn from front- 

In playing 15 Nd7. Yermolinsky 

was following the formula of exchan- 
ging White’s better bishop with ...Bg5 
ancf...Be3 and emerging in* 0 20 en< * - 


game in which his knight would be 
superior to White's light-squared bish- 
op. But after 16 Kbl, be might have 
developed with I6..Nc5, which, good 
in its own right, also avoids the dis- 
advantage of putting his king so early on 
the kingside. 

Bologan started his mating attack, 
briskly with 18 h4!, and if the pawn 
sacrifice had been accepted with 
18_.Bh4, he would have created a 
powerful onslaught with 19 Rdgl Bg5 
20 Bg5 Qg5 2 1 Rh5 Qe7 22 g5. 

On 23 gh, Yermolinsky could not 
take the bishop with because of 
24 Qg2 followed by mate. 

Bologan 's 24 Rdf!, with a threat of 25 
Bg6!, destroyed the defense. 

After Bologan's 27 Rg5, it was im- 
possible to play 27...f6 because 28 Rg7! 
decides the game. Thus, 28..Rg8 29 
Rhgl R8g7 30 hgKgS 31 Qfa8 wins the 
queen. And 28— Qe8 29 Qe8 Re8 30 
Rc7 wins a rook. 

After Yermolinsky’s 30...Rc3. Bo- 
logan paid no heed to his opponent's 
possible counterattacks but charged 
ahead with the crushing 31 h5! On 
31„JRc7 32 hg fg 33 Qg6, there was no 
answer to his threat of 34 Qg8! Yer- 
molinsky desperately played j3...Rb7. 
but he gave up without awaiting the 
reply 34 Qh.7! Kh7 35 Rh5 mate. 


1 e4 

2 Nf3 

3 04 

4 N04 

5 Nc3 

b c d e f 


8 Be3 
8 BgZ 

10 Qe2 

11 Bd4 

12 Be3 

13 WH> 

14 Nd5 

15 ed 

16 Kbl 

17 Be4 








18 fe 


20 BfS 


21 c3 


22 gS 


23 gb 


24 Rdf! 



25 Qfa5 

26 RS 


27 Rg$ 


28 Rhgl 


29 H7 



30 Qfa6 

31 U 


32 hg 


33 Qgfi 



dreamed up by a writer and the in- 
ventions of God or fate. 

A film director, one Tom Richards by 
name, is an arrogant, controlling man. 
who lives in a huge house in Wimbledon 
with his wealthy, indulgent wife, Claire. 
Tom has two children: Cora, a beautiful 
girl born to Tom’s first wife. Katia; and 
Marigold, his not-so- beautiful daughter 
with Claire. Cora is solicitous and 
charming; Marigold is sullen, pedantic 
and crude. The strongest bond these day s 
between Tom and Claire is their shared 
suspicion and resentment of Marigold. 

While directing his latest film, "The 
Hamburger Girl, Tom falls off a crane, 
breaking his hip and a dozen ribs. Con- 
valescence gives him a chance to survey 
his life. Everywhere he looks, there 
seems to be trouble. Cora’s husband, 
Johnny, has been “declared redundant 
at his job" and has disappeared to India 
with his severance pay. Marigold’s hus- 
band, James, a travel writer, is also 
roaming the world, presumably to avoid 
his sour wife. And James's older broth- 
er, Ralph, has lost his job as well. 

Things grow even more complicated 
when Tom returns to finish * ‘The Ham- 
burger Girl" and begins work on a 
historical epic. Jeanne, the young act- 
ress who plays the Hamburger Girl, 
bitterly complains that her part is smal- 
ler than that of Rose, an actress with 
whom Tom has been having an affair. 
Rose, it turns out. has also been cheating 
on her husband. Kevin, with Cora's 
husband, Johnny, while Kevin has been 
banging out with Marigold, who seems 
determined to stir up trouble among 

To top things off. Marigold suddenly 
disappears. Is it suicide? Murder? Or a 
plot cooked up by Marigold to make her 
family feel guilty and distressed? Is the 
absent Marigold behind a botched as- 
sault on Tom’s best friend? Or are such 
suspicions just another instance of the 
prejudice that this ungainly woman has 
suffered all her life? 

As so often happens in S park! and. the 
specter of evil -—real, unaccommodated 
evil — raises its ugly head, and soon 
seizes control of the plot. Hie problem 
is, there is no countervailing sense of 
virtue or innocence or compassion in 
this novel, and as a result, it's hard for 
the reader to really care about who or 
what is behind the story 's violent end. 

As usual. Spark gives as no insight 
into the psychology of her characters or 
their motives. This time, however, her 
delineation of the outward circum- 
stances of their lives feels attenuated as 
well. She makes only the most per- 
functory effort to satirize the film busi- 
ness (which would seem to offer a juicy 
target for her unforgiving eye), and she 
is equally lazy when h comes to filling 
in tne sort of narrative details that might 
make her rickety plot marginally con- 

Rom that masterly confectioner of 
malice and mayhem: a half-baked pro- 
duction that’s neither enjoyable nor 

Continued from Page 1 

runoff, it will have lost much of its 
mandate to seek the social sacrifices 
necessary to squeeze the budget deficit 
to meet the fiscal benchmarks for the 
project, analysts said. 

The French clearly have indicated that 
they are uncomfortable with the sac- 
rifices required for monetary union, said 
J. Paul Home, chief economist ar Smith 
Barney in Paris. 

During the campaign, Lionel Jospin, 
the French Socialist leader, repeatedly 
questioned the rigor of the Maastricht 
treaty criteria for monetary union. He 
called the "stability pact” on deficit 
control after the launching of the new 
currency an "absurd” concession to 
Germany by France's governing coali- 

Among the reasons why President 
Jacques Chirac called the early election 
was his hope of winning a mandate to 
push through the tough economic mea- 
sures ahead of the single currency. 

The Socialists are in favor of the single 
currency, but called the stability pact too 
rigid arid opposed the continuing fiscal 
restraints it would entail. The Commu- 
nists oppose the Maastricht treaty. 

More broadly. France's reluctance to 
tighten its belt comes at a time when 
Germany faces domestic political dif- 
ficulties that could weaken its resolve to 
pursue budget savings to meet the cur- 
rency criteria. 

Taken together with the difficult out- 
look in Germany, where the government 
is struggling to revalue Bundesbank gold 
reserves, possibly raise taxes and freeze 
spending in order to meet single cur- 
rency conditions, Europe's confidence 
about launching the euro in 1999 had 

slipped substantially by Monday. 

Eric Chaney, a former French Treas- 
ury official and senior economist at the 
Paris office of Morgan Stanley, noted 
that even if the center-right manages to 
reverse voter sentiment and achieve a 
modest victory next week, any French 
government will probably have to water 
down austerity measures, which could 
produce a weaker euro. 

“The protest vote was so strong 
here,” said Mr. Chaney, "that the ruling 
French coalition, whichever party wins, 
would have to say to other European 
leaders, ‘We have a problem in France. 
We will need more growth because there 
is a risk of social explosion in France.’ 
And the conclusion of the markets would 
then be that the euro will be weaker than 

The reasoning of Mr. Chaney and 
other economists was that if the right 
.wins Sunday, it will still have to face 
potential street protests in France. If the 
left wins, Mr. Jospin could have a prob- 
lem with his coalition partners, the anti- 
Maastricht Communists, who would be 

unlikely to approve a tough 1998 budget 
If the Socialists were to form a gov- 

ernment without the Communists, then 
the Socialists might even need the help of 
the center-right to pass a budget and that 

couldparalyze France's ability to stick to 
fiscal discipline. “Whatever happens 
next Sunday," Mr. Chaney said, “mar- 
kets will draw tire conclusion that the 
euro will be different from wbal they 
thought before the French election." 

He said the possible scenarios ranged 
from France’s reaffirming its commit- 
ment to the euro but pursuing a more 
pro-growth policy that weakens the 
franc and eventually produces a weaker 
euro to the most extreme case in which 
monetary union might have to be 
delayed or could collapse. 

The euro, if launched as a soft cur- 
rency, will have a ‘‘birth defect,” said 
Holger Schmieding, economist in 
Frankfurt at Merrill Lynch. 

The austerity debate already began to ,g- 
shift two weeks ago when the German ■ 
government abandoned its desire to 
meet the currency criteria through un- 
popular spending cuts. 

Instead, the Bonn government plans 
to lower its deficits through such one- 
time measures as the revaluation of Ger- 
many's gold and currency reserves and 
the selling of further stakes in the na- 
tional phone company. That leaves the 
two most critical partners in the 
with a diminished man date to 
sacrifices for monetary union. 

Socialists Consider Steps to Block Far Right 


PARIS — The opposition Socialist 
Party said Monday it might withdraw 
one or two candidates from next 
Sunday's parliamentary election run- 
offs to help block the election of far- 
right National Front candidates. 

Pulling out candidates, under an in- 
formal pact among mainstream parties 
to derail the anti-immigrant Front, 
would probably hand seats to the cen- 
ter-right government in the runoff and 
weaken the left's chances of gaining 
control of the National Assembly. 

JUPPE: After Election Setback, Prime Minister Says He 9 ll Resign 

Continued from Page 1 

Position after M-.-R^ 

Michiko Kakutani is on the staff of 
The New York Times. 

scrape through the runoff ballot next 
Sunday with a big enough lead to form 
the government. 

liiat will be an uphill battle, analysts 
said, after the first round of voting gave 
42.10 pereent to the leftist alliance of 
Socialists. Communists and Greens 
against 36.16 percent to the outgoing 
coalition of Mr. Chirac’s Gaullists and 
the centrist Union for French Democ- 
racy. along with affiliated splinter 

The momentum of the Socialists is 
stronger than their numerical advantage 
because they can expect to capture votes 
from the center in the runoffs, a situation 
in which conservatives are at a disad- 
vantage because of the strong showing 
of Jean-Marie Le Pen’s National Front. 

The National Front holds the swing 
vote after polling 1 5 .09 percent, a record 
for Mr. Le Pen’s parry in parliamentary 
elections and enough for the Front's 
candidates to eater the runoffs in 133 
districts of the 566-seat Parliament. 

These gains, enough to suggest that 
the front is dose to becoming the second 
largest conservative party behind the 
Gaullists, reflect a widening national 
presence of Mr. Le Pen's party. As a 

result, the extreme right may be more 
reluctant to shift support to mainstream 

“There is now a ‘second right’ in 
France, a national movement that op- 
poses European integration and has an 
ideology hostile to the classic parlia- 
mentary conservative bloc," according 
to Denis Jeambar. editor of L’Express, 
the weekly news magazine. 

Long seen as a refuge for extreme 
rightists, doctrinaire racists and anti-im- 
migrant groups, the Front was m ainl y 
centered in the Marseilles area, where 
feelings run high against Algerian im- 
migrants, and in Alsace, where the Front 
is often seen as the party of law and order. 
Nationally, among the unemployed, one 
voter in three now votes for the Front, and 
it appeals to growing numbers who resent 
what they see as a cabal among the two , 
mainstream conservative parties and the 

Indeed, all three parties agree to some 
extent on the need to promote the French 
elite, cover up political corruption and 
edge France toward European integra- 
tion. But Alain DuhameL. a respected 
commentator, said Monday that the cen- 
ter-right had opened the way for inroads 
by the Front by failing to field a new 
generation of leaders and blurring its 

European partners, the financial markets 
and its clients could not be expected to 
close their eyes to this developi ng rea i- 
xty. The notion of a weakened France^ 
might push Germany to feel it should 

lead alone. , _ . , 

But beyond Mr. Chirac, the voting 
showed other disquieting dungs about 
France. If the registered voters who ab- I 
stained were a political grouping, tbeir ! 
share of the voter pool, 31.69 percent, j 

would make them Fiance’s largest party, 

bigger rb"" the Gaullists or Socialists. j 
Al ongs ide the anger of silence was the ( 

increased volubility of the National j 
Front, polling, as projected, about 15 i 
percent of the vote, but clearly demarc- 
ating itself from the status of nasty ab- 
erration. Instead, France found itself 
with a Legitimized know-nothing party, 
comfortable with racism and anti-Semit- 
ism, that die exit polls said bad outscored 
both the Socialists and Communists 
among unemployed voters. 

These scores kept its candidates in 
races in more than 20 percent of the 
constituencies, effectively institutional- 
izing the party as a disruptive factor, and 
as an arbiter in almost 80 three-cornered 

Beyond his relentless undertone of. 
hatred, if the party’s leader had a mefm 
that could seep into the national 
consciousness, it was Jean-Marie Le 
Pen’s contention that the vote had 
snipped Mr. Chirac of his legitimacy 
and that he should resign. 

The particular quality of Mr. Le Pen ’s 
call , compared with the imprecision 



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r - r;l '-V and Bur- 

own ideological edge in a bid to cling to ! 
power. : 

So far, the Front’s gains do not guar- 
antee any parliamentary seats, and Mr. 

sa *d Monday that he would use 
tus candidates to target individual con- 
servatives who have been outspoken op- 
ponents of the Front. 

But some officials want the Front to 
seek deals offering a handful of seats. 

Bruno Megret, deputy leader of the 
party, said, "What we want is to win 
enough parliamentary places so that 
nothing can be done without us.” 

Apparently leaving the door ajar to 
local alliances, some conservatives, in- 
cluding Nicolas Sarkozy, a former min- 
il ter ’,l a,d Monday that the center-right 
FronL° ,d 3ny ^ tar S sbsd against 

Sensing that Mr. Chirac will want to 
reach over the beads of the Front’s lead- 

voters ' speculation about 
potential new prime ministers centered 
on Philippe SegmO' who has gained 

visiMny ? four ye™ aslpeak- ^ 

Sith f thfh amenL A proven vote-getter, > - 
with the human touch that Mr. Juppe so 

conspicuously lacked. Mr. SeguinVmgbt 
be anointed, in some indirect manner.fry 
Mr. Ourac thi s week - in timeTaffiS 
Sunday's voting. 

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Blu «de red 

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Ibotout Its history, 
Attstritas served tts a 
croanbadigr peoples and 
cultures. Ifay, over 2,500 
mutttoztioi corpor ations 
benefit fn the country's 
sited workf or ce, 
fttracre investment 
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de toed to make them 
font home in Austria. 

Hcmegrovn Corporations Are on the Cutting Edge 

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Among the Losers in Frtdk 

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[pa s d ynami , ical company being active in 

|i(Es (small an 50 or more national marke^s. 
li urn -sized ente- The non-Austrian cotnpa- 
prises) bkr the backbone « nies, therefore, experience 
r the copy’s economy, .the SMEs as capable coni- 

prepared to pay a premium 
price for companies offering 
both. These tax advantages 
also make die SMEs suitable 
candidates for holding 

Ederer adds. “Many of Vi- 
enna's sought-after small- 
sized companies are service 
and product providers in the 
1CT [information and corn- 

fact, ^Kit 277 of Austro Writors. They also encounter companies coordinating in- muni cation technologies] 


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jk- -a; - lu rcv>:ii; WSJ®*, 
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; 174,00( companies h® 
. woikfo s of 499 or le, 
' reports ; country’s Wii- 
, chaftsk: mer (chamber)? 
fc commei ). 

■; Thest MEs do not eoy 

■ great cel rity and tend thit 
. the -fin rial pages afy 

when ti are chidecror 
- their all< xf lack of no- 

■ vation ai adequate oital 
* resource; ir when die are 

being sns ted up by feign 
corporate i, which sen to 
appreciate ^ir. ygJufcyen 
whrathe. annisine&om- 
, munity dc <r»L K . ■•'• 

Highly in 

rnational' _ 

■Vffis arerogfaly 
!,” saysVfaitin 
a Vienr-based 

he Austrians as suppliers of 
ligh- impact products show- 
used at international trade 

“This first-hand encounter 
ridi our country’s SMEs 
tands in stark contrast to die 
ituation in Austria,” he 
dds. “As these companies 
re often quite publicity-shy, 
nd as their products are sup- 
lied through wefi-estab- 
;bed, low profile channels, 

] tie is generally known 
the SMEs in their 
country” ' 

ustrian SMEs already 
e je^onal distribution 
in place and profit 
die country’s relatively 
tie rates of corporate 
on. Since foreign 
ies often lack such 
and are looking for 
tof-tax locations, they are 

temational activities, points 
.out Erich Baiec, a Vienna- 
based expert on taxation. 

Says Brigtte Ederer; a 
noted financial expert and 
Vienna’s municipal council- 
lor in charge of finances: “I 
drink the difference in the 
level of interest between the 
domestic and non-Austrian 
sectors also lies in the depth 
of their respective capital re- 
sources. If you look at the 
foreign companies investing 
in Vienna’s SMEs, you’ll no- 
tice that they are all "strongly 
expansive or strongly rooted 
corporations with large war 
cherts for acquisitions. 

“The foreigners are look- 
ing to acquire demonstrably 
solid performers. There 
really aren’t all that many in 
the world — and there are 
lots of them in Vienna,” Ms. 

and biotech and medical sec- 
tors. They were often foun- 
ded in the 1980s and have 
grown steadily during that 
time, going international in 
the process. That’s a pattern 
that the Americans especially 
feel very familiar and com- 
fortable with.” 

Niche players 

One example is Salzburg's 
TakeFive software company, 
founded in 1992 by several 
local software engineers and 
now one of the world’s lead- 
ing suppliers of STOP (soft- 
ware for tracking and object- 
oriented platforms) tools. 

TakeFive ’s SNiFF pro- 
grams are now used by 
everyone from Ericsson to 
AT&T for the integration of 
previously incompatible op- 
erating platforms, the cre- 

ation of new ones for soft- 
ware development teams and 
the management of old and 
new software codes. 

TakeFive was taken over 
by the U.S. company Inte- 
grated Systems in 1995. 

Critics claim that Take- 
Five is very much an ex- 
ception in Austria. 

“I think that such compa- 
nies as TakeFive or Vienna’s 
own Pixel wing are always 
exceptions,” says Klaus 
Fischbacher, bead of the 
Wiener Wiitschaftsforder- 
ungsfonds GmbH (WWFF), 
Vienna's business develop- 

ment agency. “Even Amer- 
ica only has one Microsoft 
But I think for every Take- 
Five, there are hundreds of 
unsung companies, either 
newly founded or recently re- 
engineered, that are success- 
fully filling a niche on the 
world markets.” 

Ms. Ederer adds: “These 
niches are often in highly 
technical areas, and that's 
one strong reason why our 
SMEs’ accomplishments of- 
ten go unrecognized. In Vi- 
enna, we have a number of 

Continued on page 13 

A Message 
From Chancellor 
Viktor Klima 

A ustria has a special mix of 
competitive advantages 
ftrat offer highly attractive 
investment opportunities for for- 
eign companies. One of than is its 
central location as a gateway be- 
tween Eastern and Western Euro- 
pean markets, providing access to 
800 million consumers. Its his- 
torical connections and experi- 
ence in doing business in Central 
and Eastern Europe have made 
Austria an especially attractive 
base for headquarters for these 
emerging markets. 

Our country is widely regarded as one of the most stable 
economies in die world, with high productivity, low inflation 
and interest rates, a high savings rate, a rock-solid currency 
and a strike rate that has been among die lowest worldwide 
fra years. Austria has a unique system of cooperation be- 
tween business and labor; called sodal partnership, that is the 
basis for this stability. Perhaps most importantly, Austria’s 
workforce is one of the best educated, most skilled and most 
productive in the world. 

For all of these reasons, it may come as no surprise that 
Austria is already die home base for more than 2,500 
multinational companies, and — probably because of their 
positive experiences — many have expanded their op- 
erations in Austria in recent years. 

The Austrian government knows, of course, that com- 
petitive advantage is something that cannot be relied upon. 
We are therefore striving to improve our infrastructure, 
provide even better qualifications for our workforce and 
upgrade R&D facilities. We are confident that, thanks to 
these efforts, Austria will remain an attractive place to do 
business in the years to come. 


te ll, ladbcked 
neff die cen- 
of Eurne. Austria 

t.j.-j,* - _i! war. u ^ .--a, jLffornurqe, Ausina 

' -V j , - necessfy relies hr itseco- 

jvvv A- 

psperityon cuhiv- 
main tailing good 
with ffiighboring 

. r V-* Bow 

f V vr:.* :4..»v-it> 

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racnet *5 


s.'i* w “AS**; 

Minister >V S 

Ik a*** 

West, Look to the East 


ating A 

*■ Fi 

^ trerae 4st to B 
( tbeeas ach ofthdi 
.jeral pre aces has « eveloped 
"promot jal camp ligns and 
j.incenth ; to attract in- 



have come up with 
identical slogans: re- 
ively “Work where oth- 
to relax” and 
where others take a 
” Though both loca- 
a great potential 
and an unfulfilled 
capacity, in other 
their situations differ 

! y- 

ous Voraribeig 
rich neighbors in- 

['Quafit) fKfe 

; As cha e wwild' 
I busines; iroino 
[ genzanc i 
! itals of irarlberg 

land was, until 1989, a neg- 
lected outpost of the West, 
sharing aclosed Iron Curtain 
border with then-CzechosIo- 
vairia, Hungary and Slove- 
nia. Wine-growing and bird- 
watching provided a harrUy 
viable economic basis for 
one of the most historically 
interesting regions of die 

The resulting emigration 
of jobless \foraribergers and 
Buzgenlanders (many of the 
latter had already departed in 



stein aid Germany — once 
had . fosperous tactile in- droves to the United States in 
dustv, rtaich almost entirely die 1920s) was reversed by 
collar i in the face of com- two projects: a broad cam- 
pefitm rom East Asia in the paign to promote education 
earl>l 5 iOs. arid technology in the West, 

Mtn y low-lying Burgen- and a concerted effort in die 

East to open up to the 
form countries.” 

Austrian Chancellor Vik- 
tor Klima, one of whose 
goals is to reduce uemploy- 
ment, acknowledges that it is 
impossible to prohibit out- 
sourcing in every sector. 

“ One of the criteria for 
employment in Europe, he 
says, “is to produce more 
‘intelligent’ products, which 
enable us to keep our high 
standard of salaries and high 
standard of living in Austria. 
A focus on research and 
development is equally nec- 
essary for blue-collar 
and white-collar workers 

Continued on page 10 

'■V -wTnit ** ppces? 
***** ’ht dX* 

1 ts* , 




The best 

address is useless, 
if everything else goes 
the wrong way. 

Low labour-cosr? Important when choosing 
a location for your company. Maximum 
productivity? More than important, decisive. 
In order to guarantee both, everything else 
has to fit as well: best relations to labour 
markets, perfect infrastructure, economic and 
legal setting, conracts with authorities and 
much more. 

In shorn a company locacion by Eco Plus. 
The best address for your company. Leased or 
purchased, but ia any case made to measure. 
Mr. Kornber will be pleased to give you more 
information on Eco Plus Parks in Lower 
Austria, tel. <43-2236-616 26-0. 


The new address for your company. 

= "Vienna 

Grvndig Austria Ges.mb.H. 

Orb ol the largest and most modern 
TV production plants in Europe 

McDonald's Central Europe 
Vienna is headquarters of the company's 
Central European operations. 

production and trade. Reason enough for many international corporations 
to establish their Eastern European headquarters in Vienna. Times have 
changed - yet Vienna never loses its appeal. 

Should you have queries or require 
any information on Vienna as a 
business local ion. please contact the 
Information Centre of the VIENNA 

A-1082 Vienna. Ebendorierstrasse 2 
Tel.: +43 ( 1 ) 4000-86794 
F a x : +43 (1)4000-7070 
URL: fiflp:// 



PAGE 10 

S PON S< ) K 1 . 1> S 1C 1 !(> N 






Banking on High-Technology 

Vienna and the Vienna Region offer prime business locations and services to innovative companies. 

A ustrian philosopher Leopold Kohr’s theory that manufacturing industry. The co mp a ny claims to acini 
"small is beautiful*’ could well be applied to the globally competitive prices by combining West Europe 
Austrian capital. Businesspeople from New York, managem ent style with the lows' labor and infrastruct 

A ustrian philosopher Leopold Kohr’s theory that 
"small is beautiful” could well be applied to the 
Austrian capital. Businesspeople from New York, 
London or Paris soon appreciate the advantages of what 
essentially remains a large town with human dimensions. 

For the municipal managers, however, there was a limit to 
the attractiveness of small size, and two years ago Vienna 

entered into a loose alliance with the surrounding province of Vienna is proud to have been chosen as the seat of a public/ 
Lower Austria and with nearby Bmgenland to form the private partnership within die ELPs PHARE program. The 

Vienna Region. 

TINA (Transport Infrastructure Needs Assessment) office 

The potential synergies are obvious. Vienna has limited will soon start work here as the central planning department 

real estate at its disposal but possesses highly qualified 
workers, and the agreement allows it to benefit from the 
wide-open spaces of Lower Austria. Burgenland, hitherto an 
underdeveloped region with lower-than-avexage wages, can 
market its services on a par with its big business brothers on 
the Danube: 

The Vienna Region remains a mere thumbnail on the map 
of Central Europe, but it has proven its attractiveness to 
foreign investors. This applies especially to enterprises in 
what could broadly be described as the high-tech field. For 
them, each of the three sectors of the Vienna Region has its 
own contact agency. 

The not-for-profit Vienna Business Promotion Fund 
(WWFF) acts as an information sendee for companies 
seeking to relocate in the Austrian capital It bas experience in 

for Trans-European Networks extending into. Central and 
Eastern Europe. 

Lowe- Austria is represented in the grouping by the ECO 
Plus agency (this year celebrating a quarter-century in re- 
gional development), which operates more than seven busi- 
ness parks of various kinds within the province, providing a 
home for no fewer than 360 Austrian and foreign c ompan ies. 
Near the historical city ofWiener Neustadt, a 500,000 square 
meter Industry Park unites the high-tech activities of a 
Regional Innovation Center (RIZ), in cooperation with the 
Stuttgart Steinbeis Foundation, an Environmental Tech- 
nology Center and several modem production plants, the 
latest addition being Sweden's Perstorp Plastic Systems. 

An established member of the Wiener Neustadt roll call is 
Diamond Aircraft Industries, which produces motor-gliders 

developing its own pr o perty sites, mainly, but not entirely, for and Very Light Aircraft. In 1996, it became the world’s 

small and medium-sized enterprises. 

Its latest project in the technology field is the Schmelz 
Solar Center, due for completion in early 1998 but already 
partially in operation. Around 6,000 square meters of work- 
shop and office space is available far 
companies specializing in the pro- 
duction and installation of solar cells, 
low-energy houses and alternative 
heating devices. Small, low-rent 
apartments are also being construc- 
ted on the same plot 

In a private-sector development, a 
Viennese company, Neutronics — 
formed as a joint venture between 
Sandaplast B.V. of Amsterdam and 
file Austrian subsidiary of multina- 
tional Philips — is carving a niche for 


market leader for single-engine fun-flying aircraft; well over 
a thousand units have already been delivered. The Diamond 
range includes the Super Dimona HK 36 for towing sail- 
planes of up to 600 kilograms and die new Katana DA 40, a 
four-seater; both of which are 
powered by Rotax engines. 

Demand is growing so rapidly that 
a subsidiary plant has now been 
opened in London, Ontario to serve 
the North American market Also 
located in Lower Austria, in Seiber- 
sdorf, is the federally fimded FZS 
(Forschungs-Zenmnn Seibersdorf), 
which specializes in telematics and 
mate rials technology. Although FZS 
covers 56 percent of its operating 
expenses from R&D contracts, it Is 

manufacturing industry. The company claims to achieve 
globally competitive prices by combining West European 
manageme nt style with the lower labor and infrastructure 
costs available in Vienna — because of its proximity to the 
CEE — in this case by manufacturing components in 

In recognition of its role in the technology field, the city of 


' r 


The Regional Innovation Cen* at wiener 

threatened with cut-backs esulting fix 
austerity program. ' 

Less well known as a 1 nation for 
but catching up rapidly, is I ngenlanc 1 
Service Burgenland) proxies the 
would-be investors. While mgenland'! 
point) is that it provides ai >j 
thanks to its location on ti 
technology is becoming in 2 

Eisenstadt, the capital, u 1 the fh * 
own Technology and Re irch C 
November 1997), which w be linked 
optic communications netu ic with all : 
and industry parks in the pi ince, 
to Pinkafeld in the south. A aid} 
tire LALS. Dental Laser C ter, 
specialist cooperation frorr t ~ * 

genl and also plans to prov * 

Central and Eastern Europ 0 
favorable commercial condi ns in 
Vienna’s — and the -Vie 1 Regie 
eastern outpost oftheEU haaoved ac 
what will happen when the antries of 
Europe are ready to join th J ' — ” 
Vienna’s Foreign Relations ipamuem 
eyes and ears are keenly abed to 
resentatives are already on tlspot in 
Budapest Ljubljana, Zagreb; Sajevo 





itself in Europe’s expanding contract Diamcnd DA 40 UBfy-Bghtsrtr&t, made In Austria. inevitably a loss -making body and is 

mg for opportunities for busint and 


Looking West and East 

Continued from page 9 

because they then make 
products that can be exported 

Mr. Klima believes that 
Austria must contribute to 
improving living standards in 
Central and Eastern Europe 
because of the benefits in- 
herentin developing the huge 
potential markets there. 

Quality campaign 
In \farariberg, this type of 
quality campaign is already 
paying off handsomely. Ma- 
jor German and Swiss en- 
terprises — including such 
international names as 
Hixschmann (antennas). 

Liebherr (cranes) and Hilti 
(construction fitting equip- 
ment) — have relocated to 
the province. The Swiss 
chocolate firm Suchard has 
also found a soft-center gate- 
way to the European Union 
by opening a factory in Vor- 

Austrian textile manufac- 
turers have regrouped, and 
Vorarlberg is now home to 
such renowned names as 
Wolford (hosiery), Hubers 
(body stockings), and Josef 
Often (designer dress mate* 

Cooperation in the reverse 
direction, from the Austrian 
province to other shores of 
Lake Constance, known as 


to europe 

M • I'rlA 

Tyrol bas a lot: to offer businesses : 

& vigorous economy, international infrastructu- 
re, world-class financial and economic servi- 
ces, highly- qualified workforce, trade end 
industrial parks, a central location in Euro- 
pe, an efficient infrastructure and high stan- 
dard of living. 

Vigorous economy: 

Tyrol is not only a province of natural beauty and tourism. Tyrolean 
businesses are establishing strong footholds in international mar- 
kets, exporting more than 50% of total production. A dynamic economy 
is backed, up by heavy investment and high p r o du ctivity levels. 

An international infrastructure : 

The international highways B IxmtalautObahn E60*, .Brennerautobabn 
K45*. as well as others, connect Tyrol with other European centres. 
Tyrol occupies a strategic location for passenger transport and 
international commodity traffic. The same applies for the railway 
network, and Innsbruck international airport offers connections to 
all of Central Europe's airports. 

Highly level of training: 

Training standards are extremely high. The region boasta nine 
schools of engineering, 10 ecanmercial colleges, the university of 
Innsbruck and a variety of training and further education institutes 
providing a high level of education in the Tyrolean workforce. 

Tyrol in numbers : * 
Surface in Ion 1 : 
Inhabitants : 

So. of households: 
So. of businesses: 







- / ■ o: . -. r. ■ “ i . r. i 

***; 7 % +' t +. c r s** 2 ..r' * .r.r t h* * : i t 

• r . <* ' 't** . c ■*.*:. ■: r: /. v _ . o • tr. ? i; ‘ 

' : _ r.v - ■ . 1 support r.L 

^ , - '* ~ . j' 7 - :e:.“ 

"* ' 7 T>- >ce:.r»'r it r.o 


- . V-.'. >• • TL--' 

- J ' • ..." •> ’• .7 v — ■ i 

77T-- rrT-n r zr- — 

• /#;. a ‘ H ■ «; 

the Bodensee, is also picking 
up, particularly in the tourist 

This includes the two Ger- 
man states of Bavaria and 
Baden-Wurttembeig, along 
with five Swiss cantons and, 
by a slight stretch of geo- 
graphy. Liechtenstein. 

Austria's small Rheintal- 
flug airline uses St Gallen 
airport just over die border in 
Switzerland for its thrice : 
daily -connexion to--^ Vienna, | 
ahdtestpMtofo, undertheEU \ 
“Opdii Skies” anangement, 1 
started offering an already- 
popuiar six-day-a-week 
flight service from lakeside 
Friedrichshafen in Germany 
to Berlin. 

;• 1 . v s • 1 -\. 

'-%■ '' ' 

f mi 





The Josef Otter textfe company has constructed its modem <xmrate 

Burgenland is an Objec- 
tive-1 NUTS ( Nomenclature 
des Unites Tenitoriales Stat- 
I istiques) region, which 
means the province is en- 
titled to the highest rate of 
financial assistance under 
EU rulings. Trans-border 
contacts are improving, but 

Crossing borders 
A significant exception is the 
Lake Neusiedl National 
Park, whose territory is 
shared between Austria and 

Hungary. The park las 
already been accorded he 
coveted IUCN (Intematicial 
Union for the Conservaion 
of Nature) recognition ari is 
proving to be a signifiant 
tourist attraction. 

An even more ambrous 
three-country accord ir.the 
same vein is planned fo this 
year at the Raab-Cseg- 
Goricko national park, 'hich 
brings together Austria.Iun- 
gary and Slovenia a the 
frontier south of the Iifrutz 


not far 


started pi 
tra cars 
garian s 
1992, F 
trian si 
devel — 



Dr. Karl Lueger-Ring 1 2 Tel.:+43 1-533 16 ( 
A-1010 Vienna, Austria Fax:+431-535 ^6 ? 


A guideline prepared by Preslmayr i 
Partners and Auditor. ' 1 

Second, completely revised edition 
(November 1996). 1 

Introduces potential foreign investors 
to the Austrian legal and tax system! 
and offers an overview on the law as 
relevant for foreign investors already; 
active in Austria. 




l«HT ; 


r v 


u* \ 



£mty highhr 

^ ienv%): 


BUTLER SERVICE at the Hotel Imperial, Vienna 1 

Remarkable, Sir! Even leeves 1 eyebrows would have risen at the new! 
personal English Butler Service. Your "gentleman's gentleman" 
provides Impeccable, anticipatory service throughout your stay The 1 
Hold Imperial, a former palace, was voted Best Hotel of the World hv 
Condc Nast Traveler readers. y 

Rw msffwrfwiB caR your nearest ITT Sheraton safes afficc or. 

Hpfcl Imperial. Tel: ++4311)50] 10-0, F<n.+43/ i 10 

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Pawn broke 


3; -SPs, 



for loarshops 
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JR Y: Health 








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Brain Power and 
Financial Incentives 

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71»e Austrian Business Agencv offers tailor-made 
assistance to investors. 

r * jhank goodness we have cation and feasibility s tod^s, 
1 1 00 nuneral resources, start-up advice, and contacts with 
. What we do have are consultants from universities, 
braink manual skills and dil i — Financial, incentive and tax 

genet." says Austrian Minister oackaoes tinrluHinn iwo 

genet, says Austrian Minister packages (including investment 
for Economic Affairs Hannes deductions of up to 12 percent 

iur economic /urans nannes deductions of up to 12 percent 
Famfettncr. Ope ofhis main con- and R&D allowances of 1 8 per- 

" ^ frv. 

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u hich 
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-r.. Vi- V-.'..”-? - 1 '= r aadt 

cems u creating a climate con- 
ducive to foreign investment in 
Austria without squandering ir- 
replaceible raw materials. 

His department’s steps in this 
direction are clearly taking ef- 
fect. Bain power and hard work 
are pajing off. Figures released 
by the Austrian National Bank 
show r record inflow of foreign 
investnent capital in 1996. 
a arointing to 402 billion Aus- 
«fen shillings (S3 .4 billion) — 
around 22 billion schillings 
morehan in 1995. 

E«n when allowance is made 
foryeveral one-time-only trans- 
actons such as the sale of a 
leafing Austrian food retail 

cent) can be tailored to meet 
individual needs. 

The agency is able to cut 
through much of the complex 
federal red tape and simplify 
business set-ups. It is backed up 
by, for instance, the Vienna Re- 
gion enterprise, which deals 
with the capital itself as well ds 
the surrounding province of 
Lower Austria and nearby Bur- 

This year, Mr. Famleitncr has 
taken over and streamlined the 
organizational structure of the 
ABA while increasing its op- 
erational budget. His goal is to 
use to the fullest Austria’s abun- 
dant brain power. “I am insist- 

Regions Offer Flexibility and Diversity 

Hannes FamleEner, Austrian mUs- 
ter for econo mi c affairs. 

elfdn to a German distributor ing,” be says, "that there should 
aii some commercial bank be no foreign investment with- 

*' c ! , Go | inii j: 
**■ - _• '..J. 1 L "ihar Ft itj. 

uity dealings, this remains an 
tpressive figure. 

The chief instrument in the 

out research and development in 
Austria. We are admittedly an 
expensive country, but one with 

Ingoing campaign to attract de- an exceptionally skilled work- 
arable investment is the wholly force that is geographically well 

•; . . fe Mm 

^sUc. B. 

• . • -'■'i bela ii; 

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Fate-owned Austrian Business 
Agency, which acts as a nation- 

situated and politically stable." 
Mr. Famleitner has obtained a 

wide coordinator for all the promise from the government 
^country's diverse offerings for that 2-3 billion schillings will be 

i foreign investors. 

Although die ABA has no real 
estate reserves of its own, it co- 
operates closely with the nine 
relevant provincial business pro- 

set aside in foe next budget to 
promote research. One-fond of 
foe first installment of 500 mil- 
lion schillings has been ear- 
marked for a venture capital 

motion bodies, operating on a fund. Until now, this has been a 
private basis and dealing with largely neglected area, even 

queries and complaints. The 
ABA’s mission to assist investors 

though experience abroad shows 
that it can attract cosponsors 

into providing site-lo- who might put up three to four 

times the original amount of cap- 

In a move to improve the busi- 
ness environment in general — 
and to make foe country more 
attractive for foreign investors — 
the Social Democrat] c/Pcople’s 
Party coalition government is in 
the process of implementing 
steps that will eliminate or over- 
come existing hurdles. 

More flexible working hours 
have been negotiated with labor 
unions, retail shopping hours are 
gradually being extended and 
trade authorizations will be sim- 
plified (as of July 1, 1997). 

By the end of this year, foe 
waiting period for location li- 
censing will be reduced, accord- 
ing to Mr. Famleitner, to a max- 
imum of three months (with the 
possible exception of projects 
involving complex environmen- 
tal compatibility checks, such as 
new airports). Essential infra- 
structure is often a major con- 
sideration for prospective cli- 
ents, and foe implementation of 
road and rail improvement 
schemes has accordingly been 
accelerated. Telecommunica- 
tions is still lagging behind but 
should improve rapidly after de- 
regulation in the sector takes ef- 
fect in 1998. DJBL 

The majority of Europe's 1 200 busi- 
ness development corporations vaunt 
their regions' central location, qual- 
ified workforce and high-capacity in- 
frastructure, and these claims are gen- 
erally justified. 

Nonetheless, foe similarity of their 
respective sales pitches has not es- 
caped the attention of development 
corporation executives, who now re- 
strict themselves to their region’s 
USP (unique selling point) to turn 
investor interest into done deals. 

A current sampling of USPs in- 
cludes the largest number of “silicon 
investors” of any region in the Euro- 
pean Union (Scotland) or in Con- 
tinental Europe (Bavaria) or the 
longest working days (several coun- 
tries in Southern and Eastern 

The track records ofLower Austria 
and Tyrol indicate, however, that the 
most profitable way of selling the 
region involves foe building of a wide 
range of facilities and detailed know- 
ledge of local attributes and sites. 

“Our experience has shown that 
today's international investors come 
with a long laundry list of require- 
ments for foeir prospective facilities. 
Some of these requirements are 
highly individual and very particu- 
lar," says Ursula Grabner, spokes- 
person for Eco Plus, foe province of 
Lower Austria's business develop- 
ment corporation. “F ulfilling these 
requirements involves a great deal of 
innovativeness and plain luck.” 

Eco Plus must have both, because 
its list of international newcomers is 
impressive, as is foe size of foeir 
investments. Among them are Per- 
storp, foe Swedish manufacturer of 
plastics-based containers for the 
transport industry; Japan's Juki, one 
of tire world’s three largest producers 
of sewing machines; Atmosa, a 
Taiwanese company that processes 
special-purpose chemicals; and 
Magna Internati onal, a Canadian de- 

veloper of automobile components 
and systems. 

Magna’s list was especially long, 
recalls Ms. Grabner. “ In addition to 
the usual hems, Magna was looking 
fora castle and a low-cost production 

Based in Toronto, Magna employs 
more than 20,000 people at its 80 
production and other facilities around 
the world. The company wanted to 
locate its headquarters for Europe, 
R&D facilities and other departments 
in the castle. It also wanted to produce 
at the low costs prevailing in Central 
and Eastern Europe. 

Thanks to a bit of inventiveness 
and a stroke of luck, Eco Plus was in 
a position to meet both requirements. 
A castle stood empty in Oberwal- 
tersdorf, a town to the south of Vi- 
enna, arid the business development 
corporation had taken an equity stake 
in Gmund Geske Velem'ce business 
park, which straddles the Austrian- 
Czech border. 

Magna is investing some SI 36 
million in its new' castle-cum- 
headquartets. Its press and stamping 
operations in Ceske Velenice extend 
over 30,000 square meters. Across 
the park (and foe bottler), foe office 
supervising the company’s produc- 
tion facilities is located in Ground's 
center for corporate incubations and 

This strategy of “build foe centers 
and tire investors will come” has also 
been successfully employed by foe 
province of TyroL Says Georg K. 
Motz, managing director of Tecb- 
Tirol, foe state's business develop- 
ment corporation: “Our objective has 
been to create or support technology 
centers and business and industrial 
pa rtre capitalizing on of our sev- 
en business areas’ individual 
sii e n grfis and personalities. This has 
produced a selection of facilities cov- 
ering a broad spectrum of sectors — 
and of investor needs." IS. 

Local Banks, International Reach 


t first glance, Austria’s banking sector would seem a 
small oligopoly whose members all have their 

as .‘Teadorfersnl 

h-. 0 r A -r 


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JL JL headquarters in Vienna. On top is Bank Austria, 
which, since its merger with Creditanstalt, controls just under 
one-quarter of foe Austrian banking community’s total as- 
sets. Impressive though it is, this widely quoted figure does 
not'd o full justice to Bank Austria's dominant position. ' 
Together, the two fbnnecrivals account for the lion’s share of 
foe country’s merchant banking and loan syndication activ- 
ities. They also form foe country’s largest savings bank. 

Most of what’s left in these, key areas js handled by 
GiroCredit, which was acquired by foe Erste Osterreichische 
Spar-Casse Vienna in a deal related to foe Bank Austria- 
Credrtanstalt transaction, framing Austria’s second largest 
banking group. Much of foe rest of the country's general 
commercial and retail banking business is divvied up among 
foe PostspaAasse (post savings bank), foe Raiffeisen Zentral 
Bank (RZB) and foe union-owned Bank fur Arbeit und 
Wrrtscbaft AG. 

communities and thus can evaluate the prospects of foe 
individual companies.” 


Iy$ at uw 

iu -4 I 


pfoln’-iy : 

> ■ ~ *i r ’in »u -- — * t 

. <j ovt RegronaJ operations 

r w V-: As foe country's banking experts are fond of pointing out, 

* - however, foe relevant figures show that foe vast majority of 

- ^ u ; banking operatitHis and decisions are carried out at the local 

jt level Locally and regionally based credit unions, savings 

- ft banks, builfong societies and other financial institutions 

- ^ ™ two-thirds ofall loans and administer an equal amount 

-■ s::or 35 ofall savings, reports Austria's federation of banks. 

T --. r:cr»* y. This may sound like a flat contradiction of the “Big Five” 
?.£• hi- w 'y situation described above, but it is not. Most local banks are 

incorporated into hisrarchies of central organizations headed 
.■ii’resr. 1 - . y. by such national players as the RZB, which serves and 
; represents the 7 00 local Raiffeisen credit unions. Collec- 

n nuaifkv tively, the RZB system accounts for 27 percent of the 
\ --Tijy v country’s savings aid one-fifth of its loans, 
xi-:-’ L °-‘ u ’ Within these hierarchies, the local banks have complete 

V.^V-tsip: 31 . • control over their day-to-day operations. These operations 
L / v -rjiolc 'Z are impressive; foe local banks had a total of $150 billion in 
' outstanding credits as of foe end of December 199 6, ac~ 

^PP cording to the Austrian National Bank. Most of this capital 
~ : -;VW ;:;l has gone to local communities, much of it for the building of 

new business parks and office complexes, foe fo und i ng , of 
new companies and other; somewhat speculative ventures. 

: . ‘ ! iT. die Irt & x . ‘‘These figures are vfay I’ve always taken this talk of a 
''■"-.r'me & shortage of venture capital in Austria with a grain of salt," 

- jr: 3 Tii'- ^ Franz Zwicld, a member of Btirfc Austria’s board of 

" Zj dimctOTS.**^ may not have had dedicated funds in foe past, 

• although tiud’s rapidly changing now, but we’ve definitely 

d r had a banking community highly open tonewideas and new"-*- 1 ? *T, in kinds of projects. Logicrfly enough, much of this provision 
•=.:ik -'W- 14 of capital has occurred at foe lot»l level, where foe banks 

.r -c: l ir tb have a tremendously detailed knowledge of their business 

Open-minded banks 

“The banking sector’s openness to new ideas strongly fa- 
cilitated the transformation of Austria’s economy in the post- 
Worid War H era," says. Georg Bucher; senior spokesperson 
at GiroCredit. “The tnc^, of oourse*is to meld tins openness 

rigorous risk rtianai^anfiitprticediires. The success^ta^s 
— be they at the national or local levels — are the ones 
managing to do that" 

The opening up of Central and Eastern Europe (CEE) and 
Austria’s membership in the EU have driven this trends 
toward “going local.” | 

“Each of our country’s major communities — and none of^ 
them is more than 50 kilometers from an international border ® 
— has developed a vocation for serving ‘its’ foreigner^” Mr. 1 
Bucher says. His words are buttressed by a common sight in 
ViUach and Eisenstadt, Graz and Gmund: a cluster of cars 
bearing Central and Eastern European license plates in front 
oflocai banks. Inside foe banks are corporate executives and 
consumers depositing foeir capital in the bank and making 
use of its financial services. Tins inflow has given the local 
banks foeir potential capital backing. Many of foe initial 
reasons triggering these business trips into Austria are dis- 
appearing. With the nota ble e xception of the Hungarian 
forint; foe currencies of foe CEE region have been displaying 
a great stability of value. After weathering a number of 
storms, the CEE’s national financial sectors seem to have 
found firmer footing, with many of foeir banks now offering 
sophisticated corporate and retail services. 

rJkLiiW te 

I'm? ife- 

■ TgwJy Li .^,1 :•«. 

• - — Iv m m i I j ' r II 

' - — a.> 

Bank of Austria has merged 6s fargest rival, CmtttansUk 

“The ties forged in the early 1990s remain, although 
they’re changing direction," Mr Bucher says. “Instead of 
serving as safe harbors for inward flows, Austria's local 
banks are now actively reaching outward into surrounding 
areas in Central and Eastern Europe, often offering foeir 
expertise in such things as electronic banking to their CEE 
counterparts.” Terry Swartzberg 

rwacw 1 

' . .:^jv 

11 \ -..tell v 

• ■ y uii'* cfi^ 



. .JTTJ7 

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.PAGE 12 



sponsored section 




Real Estate 

O ne of the most important activ- 
ities in the real estate business 
— the creation and exploitation 
of prime locations — probably ori- 
ginated in Vienna. 

Not suxprisingly, it was the peren- 
nially cash-strapped Habsburgs and 
their predecessor dynasties who came 
up wrth the idea, according to Ortolf 
Hart the city of Vienna’s chief ar- 
chitect, who spends part of his time 
excavating and preserving the city's 
architectural heritage. 

“One of the favorite ways for the 
medieval rulers to raise money was to 
build a new palace and move their court 
to it,” says Mr. HarL “As physical 
proximity to the court was an absolute 
must for die ambitious, they were 
forced to move, too, and to construct 
new mansions on property surrounding 
the palace, also in the possession of the 

Push to the periphery 
Over the centuries, this succession of 
palaces moved progressively farther 
away from Vienna’s original center. 
The result was the city’s “push into the 
periphery," a trend furthered and ex- 
acerbated by ensuing waves of indus- 
trialization and population growth. 

This “outward development” is 
common to all the world's cities, but the 
city government of Vienna has for- 
mulated policies that attempt to slow 
and counter the spread. 

“This outward push is undesirable 

Thhavant^anie Bernese /BskiereialtHAdng was descried fyFrhdensreichHiindertwasser, Austria’s most renowned BvkrgarSst 

for environmental reasons, as it’s pre- 
dicated upon an ever-increasing use of 
land, which is a scarce resource in 
today’s crowded world, and com- 
muters have to cover more and more 
kilometers,” says Brigitte Ederer, Vi- 
enna municipal councilor in charge of 

“Socially, it’s important that capital 
and purchasing power be infused into 
the city’s ‘forgotten areas,' which are 
often centered around decommissioned 
industrial areas. The buildings in these 
areas often have great aesthetic and 
practical value, and thus 
represent an asset too 
good to be passed up,” 
she concludes. 

The city’s redevelop- 

BuHtin 1896-1899 to contain Vienna's cool 
gas sipply, the four Gasometers (righQ, 
hated in the Shattering ne&rbahood n 
southeast Vienna, am stated to be 
— tratshtmallnttfa vast commercial 

As the ard^ects model above shows, 
the circular buBdhgswBfeetue a 
central courtyard shaded by trees. 

meat policies have focused on turning 
an out-of-commission artifact from the 
industrial past into an exciting hub for 
future development 

Old made sew 

The city’s four Gasometers, built a 
century ago to store Vienna’s coal gas, 
provide a good example. Long out of 
use, these four red-and-white brick 
structures have a Moorish look to 

They are located in S i m m e rin g, a 
decidedly non-prime real estate district 
in die city's southeast, a neighborhood 
full of public utilities buildings, public 
housing complexes, and tight industry 
and logistics centers. 

The city of Vienna’s plan is to re- 

vitalize the neighborhood by convert- 
ing three of the Gasometers into apart- 
ment office and retailing complexes, 
while the fourth becomes a venue for 
cultural events. Set to house 1,000 per- 
sons, the apartments will have the 
wedge shapes and whimsical juxta- 
position of walls and doors made pop- 
ular in the Vienna residential building 
designed by Austria’s most renowned 
modem artist Friedensreich Hundert- 

In another unusual touch, the spaces 
above the commercial and residential 
areas will be turned into vast con- 

Architecturally striking 

This inclusion of striking features is 

deliberate, says Ms. Ederer. 

“The world's real estate market is 
replete with housing and office de- 
velopments of an indistinguishable 
modernity. To be successful, a project 
requires something that makes it stand 
out from the rest, something thai gives 
its resident companies and people die 
feeling of participating in an event, as it 
were,” she adds. 

The same approach is being used to 
rejuvenate the city’s Guertel neighbor- 
hood, a collection of once-nondescript 
industrial buildings that house 200,000 

The project is centered around the 
frackways ' supporting Vienna’s. efey r 
ated railway, wh ich runs through the 
"nelgHboftioodrTranHy stores ancfgal- 
leries are moving into the recently re- 
stored arch-shaped spaces under the 
trackway. TS. 

Vienna’s International Community 

With its large and growing roster of foreign companies, irrtematiorbl arx£ 
nongovernmental organizations, foreign diplomats, educators and otter ct- 
patriates, the Austrian capital is home to a remarkably diverse international 

community. _ . 

A network of municipal and private-sector services has emerged to^re spond 
to toe daily needs of this community. It involves everything from profess onaiY 
and family life to news and entertainment. Here is just a sampling. _ 


Business I n fo rmat ion _ \ 

For international business people, the WWFF {Vienna Business prorrxnon 
Fund) is an indispensable source of information and assistance. ^ -/■ v 
The WWFF publishes a particularly useful compendium entitled “VifetnaJ 
Business Profile.” an information and service handbook that Is updat d at:i 
least annually and contains a wide range of farts and figures for met ning 

entrepreneurs or established businesses. ■ ’l 

To allow investors to keep tabs on the stock market, the Vienna Bors has/ 
just gone on-line — in English - < 

— with reaftime values of the 

ATX, the Austrian Trading Int- ^ A GK1J2 

dor, as well as a selection of 9 jB a AuStrkl * 

invaluable links to listed 

companies, at sfijralfflBS ' 

enn&stock^xchange-at/ " 


. .. P „ TECHVXJXa: 

in the news 0 g T cya» 

Vienna has been a Central l §£ c 

European hub for generations * 1 c u * 

of journalists from West and 1 * 2 5 

East since toe end of World : c^ o u Txl t , l " w £* 1 

War U. Their needs are served 5 s L R 2 

by toe Foreign Press Associ- 

ation of Vienna, which recently y I 

rtSSS m-a,!»m*m*~***«**£ 

correspondents from 70 coun- i*vt 

tries still seem to find Vienna one of the best operating bases, despite) 
assumptions after toe fall of toe Iron Curtain that they would shift the center oC > 
their activities to Hague or Budapest » 


Family Bfe q 

For toe more than 3.000 employees of international organizations located ins 
the six towers of the United Nations' Vienna International Centre, the mt*i 
nicipaily sponsored Vienna Service Office provides a valuable lifeline to 
essential services concerning everything from marriage, adoption and dtvorcei 
to driving permits. Increasingly popular are toe VSO’s preretirement seminars 
for foreign UN staffers who want to remain in Austria at toe end of their careersu 
Schools are always a problem for itinerant parents. Amongthe foreign language 
choices in the capital are the Vienna International School, which offers ad 
English-language curriculum leading to the international baccalaureate; trier 
Lycfre Franks de Vienne; aid — as of September 1997 — a completely new 
European Middle School with separate and interconnected ooursesof study ral 
English, Czech. Hungarian and Slovakian, as wefl as in German. Information one | 
these and other forejghJangu^e schools is available from toe Vienna School 
Service. „ 

Cultural Bfe ■ 

Blue Danube Radio provides daytime broadcasts of news and entertainment, < 
mainly in English, but also in French, with a smattering of Italian, Spanish and \ 
Russian. The radio boasts over 14 transmitters and relays throughout Austria; \ 
in Vienna, the frequency is FM 103.8 MHz. A local Englishianguage newspaper, j 
Austria Today, is professionally produced and carries quality articles on the! 
Vienna scene. It is currently published weekly, but plans to go daily, possiblyj 
next year. { 

For theater-goers. Vienna's English Theatre offers a steady stream of topj 
notch productions. Past worl d premiere he ld in the delightful rocoro a uditorium'* 
include "The Red Devil Battery Sign" by tennessee Williams, and Edward 
Albee's'^ariiage Play.” The'ftieateralsb offers oocaisfonal performarresby] 
visiting international companies in other languages. D.H.1 

1M 41 **» S*4 

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«€ mMb<. <r 

rtASfch **>*.'•*•■ KraMtswsM 

News on the Web: hfptfwwwMJStria-today.coq. 


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CAGE 13 



: Giving Tourists 
They Want 

Innovation drives Austria's tourism industry 

W hal do tourists really want? Faced with 
protracted declines in its arrival and 
overnight stay figures. Austria’s tourism 
industry has been asking itself this question over the 
last five years. Its answers have produced a flood of 
innovations and a record amount of investment. 

: In every weather 

Vacations in the sun at cut-rate prices top the list of 
what today’s tourists want. The notoriously change- 
able Central European weather is, of course, 

. something beyond the control of Austria's tourist 

Austria’s tourism professionals have put their in- 
ventiveness to work, however, and come up with 
“wild weather walks” in which suitably clad visitors 
' befc along rustic paths in the wind and rain, allowing 
i.# 5 ” to experience the primeval furies in all their 
' savage beauty. 

Costing no more than a few raincoats and an hour 
; of a guide’s time, this is a very inexpensive in- 
■. novation. Others entail the major expenditures of 
. remodeling entire spas or creating new ones. 

.• Rest and relaxation 

‘ Tourists often want to experience something enliven- 
• ing and fflu m inat m g without really having to exert 
themselves, according to the analysis of the small 
;• Carinthian resort of Tunachsee. It has dispensed with 
- the building of further “climbing gardens” and tennis 
courts, and the resort’s leading hotel has set up a 
'■ hammam (Turkish bath), an outdoor sauna and whiri- 
; pool complex, a meditation chapel, a “grotto of 
aromas,” a “Celtic healing hogan,” an Alpine botan- 
i teal garden and an observatory Tor viewing the stars. 

: The resort even went so far as to pipe warm water 
into its adjoining lake, hearing a carefully ctrcum- 
* scribed segment of its cold depths to te m perat u res 
more commonly found in Hawaii. 

. The payoff according to the March issue of Tour- 
istic Management, Central Europe's leading tourist 
, trade journal, has been a dramatic rise in die resort’s 
: visitor totals and in the lengtb-of-stay figures. To 
, handle growing demand, the spa’s hotels have been 
9^ adding facilities and personnel 

Austrian Business Agency 


Opemring 3 

Industrial Development and Region- 

A-1010 Vienna 

alization in Lower Austria, Ltd. 

Tel: (43-1) 588 58-0 

Lugeck 1. P.O-B. 1476 

Fax: (43-1) 586 86-59 

A-1011 Vienna 

h ttp-J/www. telccoiTLat/A ustrian 

TeL: (43-1) 51378504? 


Fax: (43-1) 5137850-44 


Wiener Wirtschaftsfodcrungsfond 


Vienna Business Promotion Fund 

Business Service Buigenland AG 

Ebendorferstr. 2 


A- 1082 Vienna 

A-7000 Eisensradt 

TeL: (43-1) 4000 86794 

Tel: (43-2682) 67220-0 

Fax: (43-1)4000 70 70 

Fax: (43-2682) 67220-20 

http 7/www. wwft gv^l/wwff7 

htlp ^/ 


City government of Vienna 

Business Development & 

Magistral der Stadt Wien 

Investment Promotion 


Eduard-Bodem-Gasse 5 

A-I082 Vienna 

6020 Innsbruck 1 

TeL: (43-1) 4000 

TeL (43-512) 364000 

Fax: (43-1)4000 99 81858 

Fax: (43-512) 364000-20 

http://www.n 2 agwiengv.a 1 / 


Cutting Edge 

Continued from pago 9 

The new RognerSmtBtumau resort In 

Syria was designed by famed trfst Friedensrekh Hundmtmsser. 

“Investing in Austria” 
was produced in its entirety by the Advertising 
Department of the bilemational Herald THbune. 
It was sponsored by the City of Vienna 
and the display advertisers. 
Writers: David Hermges in Vienna and 
Terry Swaraberg in Munich. 
Program Director: Bill Mahder. 

Tourism analysts also find that tourists flock to the 
aits and the arty. In view of the millions of visitors 
traipsing each year to Saint-Paul de Vence, 
Worpswede and other artists’ colonies and of the FRO 
("feinting room only ") crushes at the ^nneer, Barnes 
Collection and other recent blockbuster exhibits, tins 
insight is not overpowering in its originality. 

Its consequences, however; have been profound 
Austria boasts a number of world-famous artists and 
architects, and many of them have recently been 
commissioned to design vacation hotels or entire 
resorts. The most prominent of these “artists in 
action” projects has just been completed- Located in 
Bad Blumau, a spa in eastern Styria, the S 82 million 
Rogner-Bad Blumau project was designed by 
Friedensreich Hundertwassec Austria’s most cel- 
ebrated modem artist His wonderfully idiosyncratic 
interplay of forms, colors and Landscapes covets 37.5 

Two other groups targeted by the country’s tourist 
industry are the weekend warriors with a taste for 
adventure and families with young children- For the 
former, a hotel in the state of Salzburg has invested in 

everything from a fleet of bang gliders to a go-cart 

“Family centers” are also springing up throughout 
the country. In addition to the day-care facilities 
common to virtually all the country’s resort hotels, 
these centers include child-friendly dining rooms and 
adventure parks. 

All this hasn’t come cheaply. Over the last nine 
years, Austria’s tourist industry has taken out $4 
billion in new loans, reports Vienna’s Institnt fur 
Hdhere Studien economic research institute. 

Further equity and working capital for fee coun- 
try’s often hard-pressed resort hotels and related 
fertilities will be coming from fee new Mittel- 
standsfmanzienmgs-AG, due to be endowed wife 
nearly $100 million by the state fimd for the financing 
of tourism. 

Today, Austria has 12 million hotel beds, and the 
provinces of Tyrol and \brariberg alone each have 
more hotel beds than such popular tourist destinations 
as Turkey and Greece. Austria's tourist industry 
employs more than 150,000 people on a full- or part- 
time basis. TJS. 

companies that are world leaders in 
designing waste disposal systems or 
building advanced mays transit 
vehicles or in setting up electronic- 
based traffic management networks. 

“The import offeis expertise is hard 
to convey tonoa-specialists,” she adds. 
“To overcome this problem, we’ve 
come up with the term ’urban tech- 
nologies,’ which sums up where these 
expertises have arisen and where 
they’re applied.” 

Why don’t large-sized Austrian 
companies have the capital to make 
these acquisitions? 

“Remember feat virtually all capital 
was destroyed in Weald War H,” says 
Franz Zwickl, member of Rank Aus- 
tria’s board of directors. “Marry of 
today's large-scale companies were 
created by fee state in fee war’s af- 
termath. A large number of them have 
since been partially or completely 

“These privatizations have drawn a 
great deal of the capital available from 
the private secton AH of the large-sized 
companies have undergone top-to-bot- 

tom restructurings, and that’s absorbed 
much of their own capital” 

He adds: “Many of our SMBs were 
also founded or refbimded at fee same 
time [after World War II]. Their capital 
came to a very great extent in the form 
of bank loans. As fee resulting high- 
gearing was commonplace throughout 
fee country, no one took much notice of 
it It’s only been in the 1980s that 
international standards have become 
germane to Austria's business com- 
munity. By these standards, Austria's 
SMEs are undercapitalized, allhough 
that's now rapidly changing.” 

Says Michael HaeupL, Vienna’s 
mayor “I have one problem wife this 
talk of ^mdercapitalization’ because it 
only considers one kind of capital — 
money. Vienna, however; has many 
others, including the talents and qual- 
ifications of its personnel and the solid- 
ity of its real estate market; which has 
steadily maintained its value wfaflegea- 
erating a large supply of attractive 

He adds: “It’s also been these kinds 
of capital that have induced this record 
inflow of investment from abroad.” 

Terry Swartzberg 



: "£&*Sg; 
■: ^sssss$\ 

... 'TJsSd'S?! 

■’ } -/gS 1 **! 


^ 5 * 


J i0 

and it’s a real EUROpportunity aus 

El! ROpporlunity 

Austria’s Economic Climate 

Austria Is Right Into IT 

With its accession to fee European Union in 
3995, Austria became a focal point of interest for 
businessmen abroad. Its existing reputation as a 
prosperous Western country was enhanced in the 
eyes of investors from overseas because of its bridg- 
ing location between the world's most powerful 
trading community and the potential Central and 
East European market. Conversely, the CEE reform 
countries saw Austria as a gateway to feeWfest. 

As a matter of feet, Austria has emerged as 
one of the leading industrial nations of the world. 
Over the last two decades, productivity growth 
has outpaced that of industrial powers such as 
Japan, the United States and Germany. Austria's ' 
surprising emergence as a centre of excellence is 
die result of a highly favourable environment for 
business - including high productivity, low infla- 
tion and interest rates. Other significant factors 
include social and political stability, one of the 
lowest strike rates in the world and a rock-solid 
currency, the Schilling, linked for more than 
twenty years to the German D-mark. It should 
also be remembered that Austria is worldwide, 
alongside Sweden and Denmark, one of the coun- 
tries with the highest expenditures on education, 
which also leads to an extraordinarily qualified, 
dedicated and reliable workforce. 

The current Economics Minister, Hannes 
Famleitner; whose portfolio includes admi n istration 
of the Austrian Business Agency feels that the attrac- 
tiveness of Austria as a business location is chang- 
ing. Although fee country's high level of education 
and the motivation of its workforce remain 
unequalled, the relative importance of what Austria 
can offer should, he thinks, be reassessed. “My 


based combustion engine researcher AVL List, the 
automotive innovator Steyr-Daiifeer-Puch and elec- 
tronics firms such as Frequentis and Austria Mikro 
Systeme (AMS). 

This technology-friendly environment is 
reinforced. by a flat corporate tax rate of just 34 
percent and numerous pro-investment exemp- 
tions and deductions, which give Austria one of 
the lowest effective tax burdens in Europe. 

Austria also offers a series of generous subsi- 
dies for research and investment activities. The 
Austrian government constantly undertakes ongo- 
ing reforms - such as the liberalisation of labour 
and trade regulations along with the extension of 
retail-business hours - to further contribute to the 
attractiveness of Austria as a business location. 
There can be no denying it pays off to invest in 

With Europe's Information Technology sec- 
tor booming, numerous m ultinationals already 
utilise the advantages of an Austrian location for 
the development of curtiqgedge technology and 
for the manufacture of high-end products, 
looking ahead, the deregulation of tdecommu- 
nications in Austria (scheduled for early 1998) 
will certainly encourage expansion in this fiekL 
More than thirty industry-related university 
institutes throughout Austria are engaged in 
research connected wife IT using the most mod- 
ern methods - from artificial intelligence and 
fuzzy logic to madtine-leanting. Their R&D solu- 
tions for business are in world-wide demand. 
Intel Motorola and Sumitomo Electrics gladly 
acknowledge that the One outstanding example 
is the Austrian Research Institute for Artificial 
Intelligence, which is a member of no fewer than 

McFantiettnerTisto promote Austria as a know-how 
centre, an innovation centre.’ Research is therefore 
befog stepped up with aid from fee government. 
Several internationally famous companies, such as 
Chrysler, General Motors, Hewlett Packard and IBM, 
have established headquarters in Austria for their 
activities in astern Europe and have expressed 
deep satisfaction wife their choice. Austria also has 
its homegrown leaders in technology, with business 
- - — -» *be Graz- 

Austrian Business Agency 

For ail information pertaining to relocating 
in Austria, the best one-stop address is the 
Austria Business Agency, the government's 
agency for industrial promotion and develop- 
ment ABA offers a broad range of professional 
services to foreign companies as well as to 
investors seeking a production facility or an 
alliance in industry and/or in industry-related ser- 
vice sectors. 

In particular, full information is provided on 
the support schemes offered by the federal, 
provincial and local government authorities as 
well as on the county's company legislation and 
tax structures. Assistance can be requested on 
canying out feasibility/location studies or on how 
to tailor financial, incentive and tax packages. 

U .STK1.W iu si\ \u.\n 

In Austria: 

Opemring 3 
A-1010 Vienna, Austria 
Tel: +43-1-588-5B-0 
Fax: +43-1-586-86-59 

In the USA: 

c/o Austrian Trade Commission 
150 East 52nd Street, 32nd floor 
New York, MY. 10022, USA 
Tel: +001-212-980-7970 
Fax: +001-212-980-7975 

In Japan: 

Imperial Tower 6F 
1-1-1 Uchisaiwai-cho 
Tokyo 100, J 



03) 35035241 
3503 5244 


Internet: foqx/toww.Tfitecoma^ 

four of fee “Networks of Excellence” organised 
by the European Union. The Institute is also well- 
known in academic circles in fee United States as 
publisher of the New York Journal of Applied 
Artificial Intelligence. 

The most recent success story is fee Hyper- 
Wave Internet access system developed at fee 
Technical University in Graz, which has caught on 
overnight throughout fee world. 

Typical of the reactions from foreign com- 
panies is that of Sony. The Japanese electronics 
giant, which now operates the world's largest CD- 
plant in “Sound of Music” Salzburg, has said the 
main factor for fee exceptional productivity at its 
Austrian location is, in a nutshell the super team - 
wife high-quality training and top motivation. 

Siemens has also chosen Austria, more 
specifically the Carinthian city of VilJach, for a 
semi-conductor production facility that is the 
biggest of its eleven "silicon-smiths" worldwide. 

New methods of business communication 
such as videoconferencing or cooperative work- 
ing presuppose accessibility co fee most modem 
infrastructure. Austria provides country-wide 
high-performance, state-of-the-art networks. 
120,000 kilometres of optical-fibre cable make 
up a dam-highway network penetrating into fee 
most remote regional areas. SDH (fee Syn- 
chronous Digital Highway), fee highest capacity 
transmission system anywhere In fee world, 
offers enterprises in Austria rates of up to 622 
Mbit/second. The associated ATM broadband 
network will be linked with all provincial capi- 
tals by fee end of 1997. 

Against this background, it comes as no sur- 
prise to learn that within the European Union 
Austria is at the top of the list as fiur as investment 
in telecommunications is concerned. Austrian- 
based enterprises are also wdi up by internation- 
al comparison in application of the new media. 
For instance, in fee relative number of Internet- 
hosts per 1000 of fee population, Austria holds 
fifth place among the fifteen EU Countries. 

PAGE 14 



North Korea 
Allows Aid 
To Families 

Donors Can Designate 
Food for Relatives 

By Steven Mufson 

Washington Post Service 

BEUING. — Threatened by famine. 
North Korea will allow South Korean 
families and aid organizations to target 
food assistance to relatives or regions in 
the Communist North under the terms of 
an agreement reached here Monday be- 
tween Red Cross officials from die two 

North Korean Red Cross officials also 
agreed to allow the delivery of food aid 
from the South in original packaging. 
The move will allow North Korean cit- 
izens, who have been barraged with pro- 
paganda about the importance of self- 
sufficiency and self-reliance, to see that 
their food aid is coming from South 

“We’re very satisfied with the talks, “ 
said Chang Moon Ik. spokesman for the 
South Korean Embassy in Beijing. “I 
think this will create good momentum 
for future talks between the North and 
South at various levels." 

South Korean Red Cross officials 
pledged to deliver 50,000 tons of food by 
the and of July. The supplies will include 
mostly com, but also flour, powdered 
milk, cooking oil. rice and noodles, ac- 
cording to Mr. Chang. He said that the 
amount includes 15,000 tons already 
pledged and sitting in China awaiting 
delivery by raiL 

The South Korean side of the talks 
failed, however, to persuade North 
Korea to open the border at Panmunjom. 
which straddles the heavily fortified bor- 
der that has separated die South from its 
Stalinist neighbor since the 1950-53 war 
that ravaged the peninsula. 

The South Korean food aid will be 
sufficient for a six-month supply for 
600,000 people, more than four times the 
current number of North Koreans re- 
ceiving Red Cross aid. according to 
agency figures. 

The commitment still falls far short of 
North Korean requests and international 
aid agency estimates of what North 
Korea needs. 

The United Nations estimates that 4.7 
million North Koreans, a fifth of the 
population, are at risk of starvation this 
summer without enormous food aid. Ac- 
counts from truck drivers and traders 
traveling in North Korea have described 
desperate children begging in markets, 
people weakened from hunger and a few 
even left dead by the roadsides. 

The economy of the North has been in 
steady declinesmcethe 1991 br e akup of 
the former Soviet Union, North Korea’s 
most important patron. Agricultural and 
industrial output has been hindered by 
inefficient communes and state-owned 
enterprises. The situation was made 
even more critical by devastating floods 
that hit important agricultural regions in 
1995 and 1996. 

The bead of the North Korean del- 
egation, Pack Yong Ho, told The As- 
sociated Press that die amount of prom- 
ised aid was “quite small in comparison 
with the total effect of the disaster." 

“I cannot say it's enough, but anyhow 
it null help," he said. 

The North Korean Red Cross orig- 
inally asked for 100,000 tons of aid 
during die talks. The South Koreans had 
offered 40,000 tons. 

The amount pledged Monday falls 
short of commitments from other 

The European Commission said Fri- 
day it was sending 155,000 tons. 

But the agreement by the North to 
allow direct donations to family mem- 
bers is likely to open the door to further 
shipments from the prosperous South. 
Millions of people were separated in the 
1945 division of the Korean Peninsula 
and in the 1950-53 war. 

No peace treaty was signed after the 
war, and tensions between the two sides 
have stymied most efforts to organize 
family reunions. 

Mr. Chang, of the South Korean Em- 
bassy in Beijing, estimated that almost 
10 million people remain divided from 
family members. 

The accord here Monday was (he first 
between the Red Cross societies of the 
Cold War rivals since a 1985 pact on 
hometown visits by displaced families. 

Under the agreement, the South 
Korean aid would be transported 
through two ports in North Korea and by 
rail and truck across the Chinese border 
with North Korea. 

Tightening Its Hold on North, Taleban Restricts Aid Workers 


Area controlled 
by the Taleban 

Ctm^&dbjOw Staff FimDafVldin 

MAZAR-I-SHARIF, Afghanistan — Thousands of 
Taleban soldiers started enforcing their strict version 
of Islamic law Monday in newly conquered northern 
Afghanistan, warning foreign aid agencies to keep 
tbeir workers indoors. 

Black-bearded soldiers roared through the streets of 
Mazar-i-Sharif in pickup trucks bristling with anti- 
aircraft weapons and rocket launchers. 

In Kabul, Taleban police dragged five Afghani 
women employed by the aid organization CARE 
International off a bus Saturday and beat them with 
sticks, the aid agency said 

The aid workers had helped to feed widows who 
could no longer earn money to support themselves 
because of a Taleban ban on women m the workplace. 
CARE said it was suspending the pi oar am until Tale- 
ban guaranteed that its workers would be protected. 

In Mazar-i-Sharif, an aid agency reported that one 
of its workers had been driven off the streets and 
warned to stay indoors. It was (he first overt act here 
against an international aid group since Taleban 
seized control of die city Saturday. 

“We will go ahead as normal, bat cautiously," an 
aid director said, speaking on condition that neither 
the director nor the aid agency be identified. “If we 
feel it is not safe for the employees to come in to work, 
we won't let them come.” 

About 2500 Taleban soldiers moved intn Mazar-i- 
Sharif on Sunday night, a day after die warlord Abdul 
Rashid Dustam fled to Turkey and surrendered bis 
stronghold to mutineers who had defected to Taleban. 

The fall of the northern provinces controlled by 
General Dustam put all but two or three of Af- 
ghanistan's 29 provinces under Taleban control. 

But Taleban came undo 1 surprise attack Monday as 

it tried to move troops into the north on the Salang 
Highway. A general in the anti-Taleban alliance, 
Bashir Salangi, who defected Sunday, had given Tale- 
ban forces permission to advance on tire route from 
Kabul to Mazar-i-Sharif, 300 kilometers (190 miles) 
northwest of Kabul. ... .. 

But overnight the anti-Taleban alliance apparently 
moved reinforcements into the area undetected. They 
fired machine guns and rockets from a pass at hun- 
dreds of Taleban troops massed below in tanks and 

"^^Tbe Taleban force took cover at the base of a rocky 
peak on the edge of the highway. Jeeps could be seen 
transporting Taleban casualties back to Kabin. t 

Meanwhile. Saudi Arabia recognized the Taleban 
government Monday, becoming the second country to 
do so, after Pakistan, the official Saudi Press Agenqr 
reported. (AP. ArP) 

MOBUTU: Hunt for Assets in Switzerland 


A soldier in Mr. Kabila’s army getting a shoes bine Monday outside the Justice Ministry in Kinshasa . 

Albright to Send Envoy to Talk With Kabila 


PARIS — Secretary of State 
Madeleine Albright is to send the Amer- 
ican UN delegate. Bill Richardson, for 
the first senior-level U.S. talks with 
Laurent Kabila since the former rebel 
-took power in the Democratic Republic 
of Congo, CJ.S. officials said Monday. 

Mr. Richardson, who established a 
relationship with Mr. Kabila on an earli- 
er trip to the region, would push the new 
leader of the former Zaire to establish a 
broad-based government that would 

pursue economic and political reforms, 
the officials said. 

Mrs. Albright “decided to send 
Richardson to the Congo with a U.S. 
delegation to begin some senior-level 
discussions on what we would like to see 

ment banned demonstrations and polit- 
ical party activity in the capital until 
further notice, citing a need for security, 
state television reported Monday. 

It also said no unit of Mr. Kabila's 
armed forces would be allowed to cir- 

there after Mr. Kabila's- rebel- culare in the city without specific orders. 

ice ousted President Mobutu Sese 
Seko after more than three decades in 
power, one official said. 

The U.S. team was expected to leave 
Washington very soon, he added. 

In Kinshasa, Mr. Kabila’s govern - 

“Ihdividiial or collective public 
demonstrations are formally prohibited 
throughout the city of Kinshasa until 
further notice," it said. "AH the activ- 
ities of the political parties are banned in 
Kinshasa until further notice." 

Continued from page 1 

The government ordered the country's 
400 banks to report by the end of the 
month on all holdings of Marshal 
Mobutu or any people and companies 
associated with mm. 

Swiss authoriti es say an initial search 
of the country's 12 leading banks tamed 
up no traceof Marshal Mobutu’s money. 
They surmise that Marshal Mobutu 
moved large portions of his wealth out of 
the country after Switzerland introduced 
new laws in 1990 making it more dif- 
ficult to launder the fortunes of drug 
smugglers and dictators. 

“I can't imag ine that today any Swiss 
bank would still have money from 
Mobutu. Such a bank would be extremely 
silly," said Kurt Hauri. president of the 
Federal Banking Commission, who is 
supervising the sweep of the nation's 
banks for Marshal Mobutu's assets. 

Jean Ziegler, a Socialist member of 
Parliament and longtime critic of Swiss 
banking secrecy, says he doubts die 
cl aim that none of Marshal Mobutu’s 
money is left in Switzerland. 

* ’Swiss banks are world champions in 
building up empires for crooks and then 
protecting them behind smoke screens." 
Mr. Ziegler said. “We're talking about 
companies owned by Mobutu's family, 
with very complicated structures and 
accounts of the whole clan." 

Even if Swiss amhoriries pin down 
Marshal Mobutu's hidden assets, it is 
unclear whether Mr. Kabila's govern- 
ment wiO be able to get its hands on his 
money soon. Much of the fortunes se- 
questered in Swiss accounts by the late 
Philippine dictator Ferdinand Marcos 
and Haiti's Duvalier family is still there a 
decade after they were overthrown. 

Swiss officials say they are eager to 
return the money to the now democratic 
governments, but they' are forbidden 
from doing so until local courts decide 
who shall get the funds. In the Marcos 
case, more than $500 million is stuck in 
Swiss bank vaults because the courts 
have not resolved rival claims by the 
Philippine government, the Marcos fam- 
ily and victims of human rights abuses 
during the 1965-86 Marcos era. 

The Mobutu fortune undoubtedly 
reaches beyond the Swiss domain. 

RUSSIA: Gazprom Factor Leads Yeltsin to Sign NATO Pact 

Continued from Page 1 

imize” the risks. Foreign Minister Yev- 
geni Primakov, who negotiated the 
agreement, described it as “an optimal 
exit" from a difficult situation. 

Under the charter, Russia will have a 
voice on a broad array of security and 

g ilitical issues through a new NATO- 
ussia council, and I he alliance has 
promised to restrain troop deployments 
and nuclear-weapons storage in former 
Soviet bloc states. 

Many in the Russian political elite, 
ranging from moderates to hard-line na- 
tionalists and Communists, urged Mr. 
Yeltsin to stand up to NATO. Some 
extremists called for deploying tactical 
nuclear weapons to the west, in Belarus, 
in response. But Mr. Yeltsin chose in- 
stead to further cement ties to the West 
— ties that included extensive loans 
from Western financial institutions. 

Two days after die agreement with 
NATO was announced May 14, the In- 
ternational Monetary Fund made public 
a long-delayed and badly needed $696.7 
million installment of a three-year, $10 
billion credit to Russia. 

Last week, the lower house of Par- 
liament, the State Duma, tentatively ap- 
proved the government's foreign bor- 
rowing plan, which includes raising 
$2.95 billion in Eurobonds this year, 
more than twice the total last year. 

Increasingly, Russian businesses and 
the Russian government are popping up 

in world financial markets, selling shares 
and seeking loans. Gazprom, the coun- 
try’s largest company, has sold stock 
abroad and is reportedly preparing to pay 
its $12 billion in back taxes to the Rus- 
sian government by borrowing overseas. 

While none of these financial (teals is 
directly linked to NATO expansion, 
many would have been riskier, costlier 
or impossible bad Mr. Yeltsin turned his 
back on the alliance and threatened a 
new confrontation with the West, ac- 
cording to analysts here. 

Mr. Kortunov said that Russia’s fi- 
nancial oligarchs, bankers and indus- 
trialists who are close to Mr. Chubais 
and who helped bankroll Mr. Yeltsin's 
re-election campaign, want to keep the 
door open to Western investment and 
business. “If they care at all about 
NATO,’ * he said, ‘ ‘it’s because they care 
about Eurobonds." 

The role of the IMF — and the West in 
general — in Russia’s economy is an 
extremely sensitive topic politically and 
a hot button for criticism from nation- 
alists and Communists, among others. 
But analysts say that Mr. Yeltsin's basic 
direction is unmistakable, if unspoken. 

By craning to terms with NATO, be has 
opened the door to the richest club of them 
all, the Group of Seven. The leaders of the 
world's industrial democracies will meet 
in Denver next month, and Mr. Yeltsin is 
expected to attend some of the talks. 

“There is no way Yeltsin could go to 
Denver if he was not playing the game in 

a Western diplomat said, 
ig on condition of anonymity. In 
addition, Russia has expressed a desue to 
join the World Trade Organization and 
the Organization for Economic Cooper- 
ation and Development, among others. 

“The real task is how to integrate 
Russia into the international community 
at the end of the Cold War," said Sergei 
Rogov, director of the Institute for U.S. 
ana Canada Studies here, who has long 
argued for a permanent security struc- 
ture that would include Russia. 

“The task is twofold. One is internal 
reform in Russia, because if there is no 
democracy and market economy, it is 
impossible to integrate Russia. And 
second is what role Russia is assigned to 
in the post-Cold War settlement” 

Mr. Rogov said the significance of the 
NATO enlargement deal was that .the 
West has avoided taking another swipe 
at a weakened Russia. 

“You are cleaning your own house," 
he said of the Western powers. “You are 
fixing the kitchen of the Western com- 
munity for the 21st century. You don’t 
want Russia to be a threat, but you don't 
want Russia to be a power vacuum, you 
don’t want Russia to become the sick 
man of the 21st century. So you want a 
predictable and reliable Russia." 

The charter with NATO “is not an 
economic package of goods." he said, 
“but this is a geopolitical arrangement 
which allows Russia to avoid tbe status 
of a defeated nation." 

_ Aid* DiaytialRctxn 

President Boris Yeltsin of Russia 
arriving Monday in Paris for the 
signing of the NATO agreement 

Mr. Rogov said the charter also would 
take the wind out of those in Russia who 
wanted a bellicose, military response to 
NATO expansion. 

Mr. Yeltsin comes to tbe Paris ce- 
remony not out of strength, but out of 

At home, the idea of the alliance’s 
expanding into the former Soviet bloc 
has rubbed raw the resentments and hu- 
miliations of the Soviet collapse. 

AFRICA: EostAsia 9 s "Tigers ’ Can Provide Some Lessons to an Impoverished Continent 

Continued from Page 1 

Lesotho and Malawi — were enjoying 
growth rates of 10 percent. That is about 
as fast as die peak growth rates for the 
Asian “tigers A — Hong Kong, Taiwan, 
Singapore and South Korea. 

“There’s an emerging consensus that 
Africa is not hopeless, and (hat in fact 
there is an emerging renaissance going 
on in Africa," said Salih Booker, a se- 
nior fellow at the Council on Foreign 

But to travel the back roads here and 
in Asia is to be reminded how many 
opportunities- Africa missed over the last 
few decades and how much it continues 
to mortgage its future by giving short 
shrift to education and health care. 

Despite the new research that sug- 
gests that a central feature of the suc- 
cessful East Asian model was a high 
level of education and public health and 
despite its own ancient educational tra- 
ditions, Africa lags far behind in build- 
; this “human capital.” 
i the little village of Lalia, in eastern 

Congo, the principal of the mud-brick 
elementary school throws up his hands at 
tbe challenges he faces educating the 
children who swarm around him. 

1 ‘We have no notebooks and no teach- 
ing materials, and some teachers don’t 
come because we cannot pay salaries,' ’ 
said the principal. Bibi Masakama. an 

energetic 32-year-old. 


lone of these kids has ever been 
vaccinated against any disease," be ad- 
ded. “None has ever had a medical 

Many reasons have been cited over 
the years for die different economic tra- 
jectories of Africa and East Asia. Some 
said that die colonial burden on Africa 
was much heavier or that Africa was 
troubled more by artificial boundaries 
and disparate tribes and languages. Oth- 
ers, including some Africans, pointed to 
climate or culture. 

“In Africa the climate is such that 
there’s always fruit around, in back of 
the house, and you just reach up and pick 
it when you're hungry,” said Alauwa 
Lobela, tbe mayor of Kisangani. “But in 

Europe and Asia, the climate forced 
people to get food, to protect themselves 
from the cold in the winter, to develop a 
spirit of battle." 

Such climate-based explanations are 
common, and analysts have found that 
the economies of tropical countries do 
indeed grow a bit more slowly than those 
of temperate countries. 

Why are per capita incomes so di- 
vergent? Economists point to a con- 
junction of factors associated with rapid 
growth: Japan. China, Taiwan and South 
Korea underwent land redistribution 
after World War II and became rel- 
atively egalitarian societies; they were 
relatively well-educated and healthy and 
they experienced a sharp drop in 

On top of that, economic policies were 
ideal: the East Asian countries sooner or 
later adopted relatively open, market- 
oriented policies emphasizing exports. 

East Asian countries pursued various 
economic models, but mere was also a 
common economic strategy, which 
countries like Uganda are now emu- 

lating. The strategy emphasizes fiscal 
prudence and avoiding inflation while 
vigorously promoting exports and keep- 
ing the currency undervalued. 

In the past, African countries often 
tolerated soaring inflation and overval- 
ued their currencies, keeping exports 
uncompetitive on world markets. 

A central issue was politics: many Af- 
rican countries flirted with socialism and 
an anti-capitalist brand of nationalism 
that was in fashion during the Cold War. 

Another factor has been savings. Partly 
because of market incentives and gov- 
ernment dictates, national savings rates 
have been muclj higher in Asia (more than 
30 percent of gross domestic product) 
than in Africa (about 12 percent). 

Economic policy aside, East Asia en- 
joyed another crucial advantage over 
Africa, one that may be harder to rep- 
licate. Countries like South Korea or 
even C hina started the development pro- 
cess with citizens who were more literate 
and more healthy than those in other 
countries at their income levels, and they 
continued to improve. 

Blair Asks Clinton 
To Address Cabinet 

The Associated Press 

LONDON — Prime Minister 
Tony Blair has invited President 
Bill Clinton to speak to his new 
cabinet when he visits London on 
Thursday, a gesture intended to 
highlight the importance that Lon- 
don places on its relationship with 
the United States. 

“We’re envisaging something 
very informal,’’ a spokesman for 
Mr. Blair said Monday. 

Mr. Clinton will speak to the 22- 
member cabinet for about 15 
minutes after its regular Thursday 

Such an invitation would not be 
the first. 

President Richard Nixon ad- 
dressed the cabinet of the Labour 
prime minister Harold Wilson on 
Feb. 25. 1969, said Tony Benn, a 
lawmaker who was minister of tech- 
nology at the time. 

Roughly two dozen foreign p roper ties, 
with a market value estimated from $40 
million to $60 million, are the only vis- 
ible part of his financial empire. They 
include s ump tuous residences in France, 
Portugal and Morocco, hotels in Spain*, 
and South Africa, and coffee plantations 
in Brazil and the Ivoxy Coast 

Tbe extent of Marshal Mobutu’s liquid 
assets, however, is open to question. 
Some experts believe he exhausted much 
ofhis fortune in the last few years, having 
to pay huge sums to the military, tbe 
political opposition and his own retinue 
to cling to power. 

Others suggest that a considerable sum 
of money, still counted in billions of 
dollars, is parked abroad. Mr. KabDa’s 
representatives have been scouring Bel- 
gium, France, Luxembourg, Morocco and 
South Africa as possible havens. They say 
they have uncovered few significant as- 
sets. The dry holes have brought them 
back to Switzerland. Until this year, Mar- 
shal Mobutu received VIP treatment here, 
including full police protection, during 
long sojourns at his villa in Savigny and 
his recent prostate cancer treatment in 
Lausanne. His entourage would occupy 
two entire floras at the plush Beau Rivage^ 
hotel, running up bills amounting to sev-* . 
eral million dollars a month. J 

Even though the dictator's recent visa 
requests have been rejected, former as~^ 
sociates contend that the vast bulk of his4 k 
wealth is in Switzerland. They said? 
Mobutu Kongolo and other family mem- 
bers controlled funds tunning into bil- 
lions of dollars and that over time they* 
built up a vast network of front companies^ 
and false identities to mask the money. 



Aid to Palestinians 
Is Imperiled at UN 

GENEVA — The United Nations 
agency charged with aiding Pales- 
tinian refugees is “technically bank- 
rupt,'’ its director declared Monday. 

The commissioner-general of the 
UN Relief and Works Agency, 
Peter Hansen, said that "just when 
the agency is more needed than 
ever,” it is “technically bank- 

"I underline technically because 
we are not going to close tomorrow, 
but our liabilities exceed our as- 
sets,” Mr. Hansen said- "We can- 
not go on stretching our resources 
thinner without reducing our ser- 

The agency, which has overseen 
Palestinian aid programs since 
1949, is the main provider of edu- 
cational, health and social services 
for 3.3 million Palestinian refugees 
in the West Bank. Gaza Strip, 
Jordan, Lebanon, Syria and Egypt 
The refugees were forced from 
their homes in fighting when Israel 
was established in 1948 and during 
the 1967 Middle East war. 

“We cannot, after 47 years, come 
to the Palestinians and say die in- 
ternational community did it for 
many years but we've grown tired 
and we’re not going to continue," 
said Mr. Hansen, appointed head of 
the agency in January 1 996. (AP) 

Israeli Warplanes 
Rocket Lebanon 

KASHA Y A, Lebanon — Israeli 
warplanes attacked suspected 
Hezbollah guerrilla bases in south- 
eastern Lebanon on Monday, Leb- 
anese security officials said. 

There was no word on casualties. 
Two Israeli jets swooped down on 
hills between the towns of Mashgara 1 
^id Ein el Tineh in the western 
Bekaa, firing four air-to-surface 
missiles, the officials said. 

The attack was apparently pro- 
voked by an attack on the Israeli- 

“5*5“ m ihtia in south Lebanon, the 
officials said. 



a.-, . 







Canadians Seise 
U.S. Fishing Boats 

VANCOUVER — Canada has 
fish ing boats in an 
° f lts . dis P ute w »th Wash- 
ov 4 r salmon fishing in the 
Pac'fic, officials said Monday. 

bv r3 last . w «k’s decision 
oy Canada to strictly enforce ree- 

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Colombia court Tn^Tuesday ^wasf a jo 

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international HERALD TRIBUNE. 
TUESDAY, BUY 27,1997 
PAGE 15 

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Mnort/Thonm IDactX Beui 

From Left: Hermes elephants on parade; Ralph Lauren's pinstripe suit with matching pastel shirt and tie; 
Guccis monochrome look with a sheen; and, at bottom, Hugo Boss’s dark shirt and shiny tie. 

*Ge t Serious! Truth About Ties 

Pigs , Birds and Whimsy Are Endangered Species 

By Suzy Menkes 

International Herald Tribune 

P ARIS — The culling 
has been swift and 
merciless: first the 
baby elephants as 
they were playfully squirting 
water from ifieir trunks, then 
the zebras and giraffes at full 
stride. Next went the pretty 
pink piglets with curly tails 
and the ostriches — however 
much they buried their heads 
in -the sand. Entire herds of 
endangered species are about 
to be wiped out by the cruel 
whims of fashion. 

We are talking neckties 

The whimsical tie has had a 
good run for your money, but 
now it is over. Those cute 
little printed silk creatures are 
being killed off or relegated to 
the top shelves in stores. 
Moving from t wi tty to stodgy, 
they have suddenly become 
the symbol of corporate man 
Jot, worse (shudder!), the 

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has turned 40. 

The new-generarion thirty- 
something’s necktie is as 
thick as clotted cream and lies 
satisfyiagly heavy on the 
chest. It is plain, mostly wa- 
tercolor pale, bat occasion- 
ally rich or bright It might be 

woven into a lattice of texture, 
or have regimental stripes or 
polka dots. Especially dots. 

Even a bold tie does not 
stand out, but blends into a 
matchin g shirt; jacquard- 
weave white on white, diag- 
onal stripes on stripes, 
flowers on floral print. 

N othing shows 

more clearly the 
generational fash- 
ion change than the 
neckwear of Tony Blair, Bri- 
tain’s new prime minister. 
Just as Bffl Clmton’s individu- 
al ties with geometric patterns 
by Tino Cosma of Florence 
have become the president’s 
signature, Blair is putting his 
t personality around his neck. 
^ His ties came out of the closet 
as Blair made a public move to 
the official residence at No. 10 
Downing Street. His ties were 
plain, abstract or geometric 
patterned bat with no printed 
animals . When be attended 
the opening of Parliament 
•with Queen Elizabeth XL he 
wore polka dots. 

"Fbr us, print is out — birds 
and terriers put me right off,” 
says Grant Boston, the creative 
director of Blair’s favorite out- 
finer, Malcolm Levene, a 
■ email store on Chilean Street 
in London. Boston says his 
clientele of architects and de- 
signer types goes for woven 
ties in “rich Venetian c*r sari 
colons” and Am* thernodam tic 
is “about bring witty through 
color and about playing with 
the weight of the tie.” 

At Turnbull & Asser on 
Jexmyn Street, London’s 
heartland fbr the stylish man, 
the store has also put the foul- 
aid or patterned silk tie “on 
*e back burner ” Its highr 
profile clientele now selects 

plain, strong, bright ties, or 
big dots, geometries and 
woven textures. 

In Paris at Dior, the de- 
signer Patrick Lavoix has de- 
veloped ties with quiet geo- 
metric effects that blend 
subtly with the shirts. Wear- 
ing a yellow shirr with a lie of 
.fine horizontal stripes, La- 
voix says that he was mo- 
tivated to concentrate on 
heavy, textured ties in order to 
create the thicker knots suited 
to the currently fashionable 
spread-collar shirts. 

A well-dressed man might 
justifiably claim that there is 
no such thing as a “fashion- 
able” necktie, merely one that 
reflects the taste and style of its 
wearer. In that camp is Henri 
d’Origny, who will celebrate 
next year four decades of cre- 
ating neckwear for Hermes, In 
an open-necked shirt at the 
Hermes flagship Paris store in 
the Faubourg Saint-Honore. 
he compared the attention- 
grabbing tie to “a woman with 
too much makeup." 

“Nothing is easier than to 
do so-called ‘original’ ties,” 
he says. “What is difficult is 
to develop a style and con- 
stantly renew it.” 

D’Origny’s graphic style 
for 40 years has been geo- 
metric with an equestrian 
edge — even after a fellow 

designer in the Hermes neck- 
tie studio came up with the 
elephant design in 1982 and 
started a fashion that has 
stampeded across the world 
and through to main street 

“Elegance negligee” 
(roughly translated as 
“throwaway elegance”) is 
d'Origny’s aim. His personal 
neckwear is all in shades and 
textures of knitted black silk. 

So Hermes is really ditch- 
ing its signature whimsical 
prints? Pascaline Bachelor, di- 
rector of the necktie depart- 
ment, points to elephants, gir- 
affes and zebras, now given a 
touch ofthe wild to fit with this 
season's African theme. There 
are also tribal motifs contained 
in geometric squares. Bui the 
animal ties now hang on the 
back display rail. The most 
intriguing neckties are either 
woven sUk or the new heavy- 
weights created from the fruits 
of silkworms fed on plants 
found only in distant parts of 
China, Iiknaand ^ Vietnam. The 
result is neckties that are ultra- 
luxurious but unshowy in 
baked-earth, gourd, bark or 
bine African shades. 

There is a big difference be- 
tween a house like Hermes or 
Fenagamo that specializes in 
printed silk and creates a range 
of ties that become collector’s 
hems far loyal clients and de- 

signers who create neckties as 
fashion accessories. But there 
is a surprising cohesion be- 
tween the Rolls-Royce tie 
makers and the rest of the mar- 
ket Even Paul Smith, known 
for sporty, casual clothes, put a 
khaki military shirt with a 
matching satin-stripe tie. 

Satin, or silk with an iri- 
descence or high shine, is the 
look for men’s fashion ai the 
sharp end. Gucci was first off 
with this monochrome look 
and for the new season 
showed shirt and ties with a 
sheen. Gianni Versace’s col- 
lection also included the satin 
shirt and tie. 


MoaraOVnai (Bythu. Rykwi Hanoi. VcmatPicnAnocimoafBliaj; Apoce Rmcc^nnc (Skirt dad 

Clockwise from above left: Byblos polka-dot shirt and tie ; Rykiel Homme striped shirts and ties; Versace's satin 
tie and shirt , and Paul Smith's striped tie and military shirt; Tony Blair in polka dots, and his ties on the move . 

T HIS may be the right 
stuff for weddings or 
parties — but surely 
not for work? Yet, in 
his spring collection, Ralph 
Lauren put with bankers' pin- 
stripe suits, pastel shirts and , 
matching ties. The effect was 
sleek and light — yet sen - 1 

The truth about ties is that 
you can wear what you want. 
But for most men, foal means 
choosing a tribe, by identi- 
fying with the Charvet clas- 
sics or the jazzy stripes of the 
wannabe hip. Correction. If 
you want to be hip today, you 
choose a classic tie. And it’s 
farewell to Elephant Mao. 


Croire eh ses x&ves 

etViun les reaiiser. 

Collccrion "ALHAMBRA" 
a parti r de 4 100 FF. 



-i / y 

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Van Cleef & Arpels 


k KHifT [-CAR U 1*3 Nfvt LfWURlA BWVllli-N NW W*K W1M N* II KtYUlt IIIIIMMNiill-M' 
XUM, M 1 . M Wi rt ’■NJl'L l l l l VINU)KWI*MM 

No seriously. You could win an elephant and a trip to Thailand, simply by reading the IHT. Look out for the upcoming ads. 


Ji t :p :/A v w.ii'tne:. cr.j p'tzce. 

-*7 ft. ftTHYVnilMLm 



TUESDAY, MAY 27, 1997 

Beyond Development* 
Rediscovering Nature's Wisdom 

The 2005 World Exposition, Japan 

PAGE 17 

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French Stocks Tumble 
On Socialists’ Showing 

Fate of Privatizations Raises Concern 

JabfL W» l» X^uvr toe- •- ttnor 

Hutomo Mandala Putra, left, and Tunky Ariwibowo, the trade minister, at the unveiling of the Timor. 

Indonesia’s ‘National’ Car Stalls 

Ccx^ntni Ay Or Stuff Fiztn Du/tatchn 

PARIS — Stock and bond prices 
tumbled Monday amid concern over the 
future of the country ’s economic reform 
efforts after the strong rr-ihan-e.xpccied 
showing by the opposition Socialists in 
legislative elections Sunday. 

The benchmark CAC 40 Index 
tumbled 1 08. 16 points, or 3. 9 percent, to 
2654.74. The drop was the C AC’s largest 
one-day percentage decline since Oct. 5. 
1992. when it slipped 43 percent. 

The markets seemed to be shuddering 
at the prospect of a period of “co- 
habitation" between President Jacques 
Chirac, a conservative, and a govern- 
ment led by the Socialists and their 
Communist allies .Thomson -CSF, 
Credit Lyonnais and other state-owned 
companies led declines mi the exchange 

i « 1 1 

7 9 VVvJ ( *T*7i I 

By Michael Richardson 

International Herald Tribune 

JAKARTA — The several thousand 
brand new sedans that fill a large lot 
near Jakarta's international airport are 
silent testimony to the flagging sales 
and uncertain future of Indonesia's so- 
called national car project. 

As Indonesians prepare to vote in 
parliamentary elections Thursday, 
critics of the car project say it has 
become a target of the unusually 
vehement and open public protests in 
the campaign against alleged col- 
lusion between government and big 
business. The critics say this col- 
lusion influences the awarding of 
contracts, licenses and state bank 
loans to favored companies — often 
those controlled by relatives and 
friends of President Suharto. 

The government, acting on instruc- 
tions from Mr. Suharto, who regards 
tire project as a vital part of his plan to 
make Indonesia a modem industrial 
state, recently directed a group of state 
and private banks to lend $690 million 
to PT Timor Putra Nastonal, the des- 

ignated national carmaker, to help fi- 
nance construction of its production 

Timor Putra is controlled and man- 
aged by Hutomo Mandala Putra, Mr. 
Suharto's youngest son and a busi- 
nessman with little experience in the 
auto industry. 

Mr. Hutomo said recently that a total 
of $13 billion would be needed to 
establish Timor Putra, including its 
engine- and parts-making divisions. 

The national car program was 
launched in February 1996 by pres- 
idential decree. It gives Timor Putra an 
exclusive exemption from hefty tariffs 
and luxury-sales taxes and the right to 
import as many as 45,000 sedans from 
its joint-venture partner, Kia Motors 
Carp, of South Korea, until its plant in 
Indonesia is operational; that is due to 
happen in 1999. 

Even though the sedans come from 
South Korea, they cany the brand 
name of the national car, Timor. 

Japan, the European Union and the 
United Stales have tiled complaints 
with the World Trade Organization, 
charging dial the policy discriminates 

in favor of the national car project and 
against existing or planned auto-as- 
sembly investments in Indonesia by 
other companies. 

Ford Motor Co. has said h will not 
build cars in Indonesia until the pref- 
erential policy ends, and General Mo- 
tors Carp, says it has dropped plans to 
build an auto factory in Indonesia be- 
cause of the policy. 

"They gave the national car pro- 
gram all the tax breaks and made 
everybody else totally uncompetit- 
ive," said Michael Meyerand, a 
spokesman for GM. 

On Friday in Geneva, Indonesia 
blocked the European Union’s request 
that the trade organization set up a 
panel to determine whether Jakarta's 
national car project breaks world trade 
rules. Japan made a similar request last 
month, which Indonesia also blocked. 

Diplomats expect both the EU and 
Japan to bring their complaints before 
die organization again when it meets 
June 25. 

Indonesia cannot block a second re- 

See CAR, Pagel9 

Thinking Ahead /Commentary 

Unborn Euro Starts to Strut Globally 

By Reginald Dale 

International Herald Tribune 

W ASHINGTON — Europe’s planned adoption of a 
single currency, the euro, will represent die 
biggest change in the international monetary sys- 
tem since flexible exchange rates were introduced in die 
early 1970s. It will have profound consequences for the 
dollar and probably for the yen. 

So far, however, most Europeans have concentrated on 
the euro's internal effects and nave paid little attention to its 
impact on the outside world. The United Stales and Japan 
have given the matter even less thought 
Now Americans are waking up to the possibly un- 
welcome idea that die dollar may soon 
face a serious international rival for 
the first time since the decline of ster- The dollar CC 
ling earlier this century. n ■ 

In a study published in Washington tlTSt SdlOUS 1 

last week, “Cooperating with nvnl in sever 

3 ’} Europe’s Monetary Union,” C. Ran- 

■) rial! Henning of the Institute fen: In- 

The dollar could face its 
first serious international 
rival in several decades. 

teraationaJ Economics warns that a Europe endowed with a 
single currency “will be stronger than any bargaining 
partner dial the United States has faced in the postwar 
period and will probably offer a com petitive alternative to 
the dollar as an international currency. 

Some European leaders have even said that the euro’s 
main aim is to put Europe on an equal monetary footing 
with the United States — ending the dollar's ‘ ‘hegemony,’ 
in the word of President Jacques Chirac of France. 

Most monetary experts, however, say that is unlikely to 

batmen in the near future — and most Europeans do not see 
the euro’s launch as an adversarial move against the United 

States. _ 

The euro’s primary purpose is to complete the European 
Union’s single market and advance the cause of closer 
European economic and political integration. 

In any case, as an analysis published by Salomon Broth- 

ers in London this month points out, die new European 
central bank may be reluctant to promote the euro as a 
reserve currency in its early years. 

Over time, many analysts say, the earn could become 
attractive to central banks outside die EU as means of 
diversifying their reserves, but its importance as a reserve 
currency will vary widely among regions. 

The euro will probably be most popular in areas close to 
the EU, such as Central and Eastern Europe and to a lesser 
extern Africa and the Middle Hast, while Latin America and 
Southeast Asia will probably stick mainly to the dollar. 

That pattern would replicate fairly closely the current 
international reach of the Deutsche mark, die euro's most 
important component, according to a recent analysis by 
T oky o-Mitsubishi International PLC 
- 1 in London. 

old face its Only in Asian developing countries 

. ■ is there “a meaningful tripartite com- 

lter national petition" among die dollar, the yen 
.1 decades. and the mark, with the dollar far ahead, 

the analysis concludes. 

Two major factors remain un- 
known: bow far private portfolio investors will switch from 
dollars into euros and the extent to which European central 
banks will sell excess dollars as they set up their new 
European central bank, which is generally expected to need 
fewer dollar reserves. Both factors could push the euro's 
value upward. 

The Salomon Brothers experts, however, say their im- 
pact will not be as sharp as others have predicted. 

For now, they say, simulations of the euro show that it 
would be “moderately undervalued” compared with the 
performance of its component currencies against the dollar 
in recent years — or not far from its “fair value." 

Some Japanese analysts say the yen is more likely to be 
adversely affected than the dollar, especially if Tokyo fails 
to reform its financial markets. But while the euro may 
quickly become the world’s No. 2 currency, it won't soon 
replace the dollar in the top spot 

be canceled if the Socialists won control 
of the National Assembly. 

The Socialists, who won unexpec- 
tedly strong support from voters in the 
first round of elections, have hinted they 
would seek to stop the planned sale of 
Thomson-CSF if they take control of 
Parliament after the round of runoff 
elections set for Sunday. They are also 
perceived as hostile to plans to sell other 
state-owned companies. 

‘ 'The major question is whether these 
companies will be privatized or not," 
said Christian Parrain, a fund manager 
at Cap Finance. 

Traders said French markets would 
be nervous until after the vote Sunday. 
The election also put pressure on the 
French franc. (Page 18) 

But Didier Bouvignies, a fund man- 
ager at UAP Gestion Financierc said, 
‘ ‘Even if the Socialists did come out on 
top. the restructuring this economy 
needs would eventually take place — it 
would just take longer. ’ ’ 

Shares in both of Thomson's poten- 
tial takeover candidates, Lagardere 
SCA and Alcatel Alsthom SA, also de- 
clined. Lagardere lost 10.80 francs, or 
5.8 percent, to close at 17430 ($3038), 
while Alcatel fell 19 to 661. 

Other state-owned companies whose 
planned sales could be jeopardized by a 
Socialist victory also declined. Credit 
Lyonnais SA lost 20.40 to 212.70, while 
Groupe ties Assurances Nationales SA. 
an insurance company, lost 5 to 132. 


Renault, which is 46 percent owned 
by the state, fell 730 to 146.60. In- 
vestors were worried that tire company 
would not be able to make job cuts if the 
Socialists were elected. PSA Peugeot 
Citroen SA, France’s largest carmaker, 
fell 25 to 605. 

Dassault Electro nique SA, a maker of 
electronic automation systems, fell 41 to 
549. Investors were concerned that the 
planned merger between Dassault In- 
dustries — the Dassault family holding, 
which owns both Dassault Electronique 
and Dassault Aviation SA — and state- 
owned Aerospatiale SA could be 
threatened by the outcome of the le- 
gislative elections. 

Dassault Aviation, a partner of Alcatel 
in the bidding for Thomson-CSF, did not 
trade at all. The stock was suspended at 

i-l f / I il'-M*} ■ 1 ii-l 1 1 K< • vh ■ • - I « 

were more than 10 percent below Fri- 
day's closing price of 1,230. 

Banks and insurance companies fell 
amid fears of higher interest rates. The 
yield on the benchmark 10-year French 
government bond rose 10 basis points, 
to 5.84 percent. 

Bond prices also declined amid con- 
cern that the government's poor per- 
formance in the polls would threaten 
efforts to cut the budget deficit enough to 
meet the criteria for joining the European 
single currency in 1999. 

“If the right wins, I expect banks and 
companies in need of restructuring, 
such as Thomson, to benefit," said 
Dominique Sabassier, a fund manager 
at Caisse Centrale des Banques Pop- 
ulates. ‘ ‘If, however, the left wins, then 
I'd have to adopt a much more defensive 
strategy and focus cm consumer-spend- 
ing related companies such as Danone 
or Pjnaulr-Prmtemps-Redoute.” 

Danone SA fell 31 to 883, while Pin- 
ault-Primemps-Redoute SA feQ 144 to 
2396. Although both stocks stood to 
suffer less from a Socialist victory, 
traders said they had been hurt by a wave 
of foreign selling orders. According to 
die French stock-exchange watchdog, 40 
percent of the owners of stocks traded on 
the Paris Bourse are nonresidents. 

Traders said volume on die market 
was hurt by the absence of American and 
British investors. Markets in both those 
countries were closed for a holiday. 

(Bloomberg, Reuters ) 

'You’ve got the vision. 
We’ve got the know-how. 


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You see things for what they 
are. And also for what they 
could be. 

It’s the kind of vision that 
ignites and fuels the entrepre- 
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We at Credit Lyonnais Private 
Banking share this vision. 
And, equally Important, we 
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Private Banking Network: 

Switzerland: Geneva tel. 41 22/705 66 66 - Headquarters for Credtt Lyonnais International Private Banking 
Basle tel. 41 61/28422 22 -Zurich tel 41 1/217 86 86 -Lugano tel. 4] 91/923 5J 65 
Paws tel. 33 1 /42 95 03 05 • Luxembourg tel. 352/476 831 442 - London tel. 44 171/499 91 46 
Monaco tel. 377/93 15 73 34 . Vienna tel. 431/531 50 120 • Montevideo tel 598 2/95 08 67 • Miami tel ! 305/375 78 14 
Homo Kong tel 852/28 02 28 88 - Singapore tel. 65/535 94 77 


Investor’s America 

The Dow 

30'Year T-Bond Yield 

7250 — 
6750 — 

*? &S5 


G2S0 — * 

LS 1 

1JU D J 

F M A M ' 

110 D J 

F M 1 

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• « \ \ 


Market Venus 




TSE Index 

64 64.00 






Mexico City 




Busnos AlrexMerval 





IPSA General 

- 5488.38 



C^jaar General 




Source: Bloomberg. Reuters 

loteimiaiBl Herald Tribuar 

Very briefly: 

• American companies expect to hire more workers this 
summer than at any time over the past nine years, according to 
Manpower Inc.’s quarterly survey of 16,000 businesses. 
Thirty percent of the companies surveyed expected to hire 
employees in the third quarter, while S percent planned to cut 
workers, the employment agency said. 

• U«S. business confidence jumped in May in response to an 
economy and stock market that continued to '‘make im- 
pressive gains," according to an industry survey. The Cahners 
Business Confidence Index rose 1.1 points, to 67.5, after 
falling in April. 

• Sao Paulo's mayor was asked to explain the use of more 
than SI billion raised through bond issues to a commission 
investigating alleged state and city bond fraud. 

• Colombia's net foreign reserves reached an all-time high of 
$10.12 billion as of May 9. the central bank said. 

• Mexico recorded a trade surplus of $109 million in April, its 
smallest surplus in 27 months, according to a preliminary 
report released by the Finance Ministry. 

• Placer Dome Lac. agreed to sell its Kiena and Sigma gold 

mines in Quebec and some related properties to McWatters 
Mining Inc for $70 milli on. Bloomberg, Bridge New. Reuters 

Call for Cyberspace Curtain 

By Steve Lohr 

New York Tones Service 

Co mmunications 
, is an attempt to 

NEW YORK — In the face of growing concerns 
about privacy in cyberspace, a group of about 40 
companies was due to propose standard software 
Tuesday intended to enable computer users to control 
what personal information is obtained when they visit 
Internet sites and how that information is used, as 
well as avoid unwanted e-mail. 

The initiative, led by Ni 
Corp., an Internet software 
cope with privacy issues that 
threaten to slow the growth of 
Internet commerce and lead to 
government regulation. 

Americans are far more con- 
cerned about privacy on the In- 
ternet than they are about per- 
sonal and financial information they give out over the 
telephone and through fee mail, according to a recent 
survey conducted by the Boston Consulting Group. 

Forty-one pe r ce nt of die 9300 people who re- 
sponded to the on-line survey said they left Web sites 
rather than provide such registration information as 
their names, {drone numbers and e-mail addresses, 
while 27 percent said they gave false information. 

The Boston Consulting report also estimated that 
as much as $6 billion in additional electronic com- 
merce would be transacted by the year 2000 if con- 
cerns about privacy on the Internet were addressed. 

The industry proposal, called the Open Profiling 
Standard, is partly an attempt to address those 
qualms. But rt is also an effort to convince the 
government that regulation is not needed. 

The industry argued against government controls 
last summer in voluntary hearings before the Federal 
Trade Commission. The commission’s stance has 
been that privacy in cyberspace is a crucial consumer 
protection issue, but that the industry should be given 
a chance to show it can deal with the problem. 

Since the 1996 hearings, the commercializati on of 
the Internet has steadily grown. One by-product of that 
evolution is the recent surge in the vohnne of electronic 
junk mad, pitching products and get-rich schemes, 
whose promoters can often easily find e- mail ad- 
dresses from on-line services or on-line merchants. 

Netscape is leading the 
industry initia tive to cope 
with privacy issues. 

But Internet privacy concerns run far deeper than 

the nuisance of junk e-maiL A person surfing the 
Internet leaves a digital trail with each mouse click, 
allowing Web site operators to closely monitor a 
person's movements through cyberspace, preferences 
and interests. Internet technology permits marketers 
to personalize on-line products and services, but it also 
has the capacity for abuse, especially if information 
about a person collected at one Web rite is passed on 
to other companies without the poson’s consent 
How well the industry is moving to address these 
kinds of privacy issues will be the subject of four days 
of public hearings to be held by the Federal Trade 
-- Commission starting June 10. 
The commission will submit a 
report to Congress in tlx: fall on 
how well the private-sector ini- 
tiatives are working and will 
recommend what role, if any, 
the government should play in 
protecting privacy on the Internet 

Government officials and industry analysts say the 
proposal made feis week seems to be a significant step, 
though much will depend how it is put into effect. 

"This is important," Christine Varney, a com- 
missioner of the Federal Trade Co mmissi on said. 
“The technology tools and standards are essential to 
protecting privacy in cyberspace. They are a nec- 
essary, but not a sufficient answer to the problem." 

The proposal, based on the principle of informed 
consent, was drafted mainly by a handf ul of Internet 
software companies tike Netscape, Firefly and Ver- 
isign. It also has die support of leading technology 
companies such as International Business Machines 
Corp. and Sun Microsystems Inc., media businesses 
such as Kmght-Ridder Inc. and The New York limes 
Co., and advertising firms such as J. Walter 
Thompson and Organic Online. 

The proposal will be presented to the Worldwide 
Web Consortium, the main arbiter of industry-wide 
standards for Internet software. Using die profile 
■standard, aperson would fill out a farm including baric 
descriptive information such as name, address, zip 
code and e-maiL as well as extra information if one 
chooses to enter it — age, marital status and hobbies. 

One significant Interne t software company was not 
inducted in the proposal, Microsoft Corp 7 which is 
Netscape's main rival Vying for leadership in stan- 
dards setting is part of the competition between diem. 

French Franc Tumbles 
On EMU Concerns 

PARIS — The French franc lost 
ground the Deutsche mark 

Monday as the unexpectedly st rong 
s howing by the Socialists in the first 
round of die French legislative elec- 
tions fueled concern about the single 
European currency - 

The franc declined amid worries 
ihar if die Socialists won the runoff 
electi ons on Sunday, they were un- 
likely to take the austerity 


measures necessary to qualify the 
cou n try for European currency un- 
ion p lanne d for 1 999. 

To qualify for EMU, France must 
bring its public deficit down to 3 
percent of gross domestic product' 
by the end of this year from 42 
percent at the end of last year. 

Doubt that Europe will be able to 
introduce the euro often lifts the 
made by fueling expectations the 
mark wifl remain Europe's main cur- 
rency. "The marke t is getting 
nervous and concerned about the 
prospect of the monetary union.” 
said Satorin Soda, assistant manager 
in the foreign exchange and inter- 
national treasury division at Sakura 
Bank Ltd. in Tokyo. 

The franc depreciated to 33745 
against the mark in European trad- 
ing from 336S5 cm Friday. 

But a gatTHtf the dollar, the franc 
remained largely unchanged, with 
fee dollar quoted at 5.7005 francs in 
Paris, compared wife a New York 
close of 5.7085 on Friday. 

“The uncertainty about the euro 
pushed fee mar k forward against 
fee dollar.” said Thomas Neemann, 
a trader at Bankhaus Hermann 
Lampe in Dusseldorf. "If the left- 
ists win in fee next round, feat's not 

going to be good for fee dollar, 
since France and Germany are fee 
Ifnchpins of fee euro." _ . ’ 

Trading was thin because British * 
and American financial markets 
were closed Monday for holidays. 

The dollar fell to 1.6860 DM- 
from 1 .6938 DM late Friday in New ; 
York. The dollar bought 116.04 
yen, up from 1 1535 yen Friday. - 
Dealers said fee dollar had been ' 
depressed by proxy against the mark* 

in place of fee franc, and they warned 

feat fee franc might slump fuitheron _ 
Tuesday when U-S. and British’ 
traders returned to the markets. 

(AFP. Reuters. Bloomberg 

Yt-n £lirr ■ 

Welfare to Work: Not the Rule for U.S. Firms 

The Associated Press 

Weekend Box Office 

program, a national model for busi- welfare — unless someone on wel- not hiring. "For the most part we're' 
WASHINGTON — Shayna ness seeking to help move people fare happens to apply and get a job inadownsizing situation,’’ said Tim 

fee usual way, according to inter- Klein of BellSouth Corp. 

The Associated Press 

LOS ANGELES — ‘ The Lost World: Jurassic Park" dom- 
inated the U3. box office over fee weekend, wife a gross of 
S69. 1 million. Following are the Top 10 moneymakers, based on 
Friday’s ticket sales and estimated sales for Saturday and 

Reeves walked to the 
cepted her diploma 

ac- from welfare to work. 

President Bill Clinton is prodding views wife each company. 

Even c omp anies that hire large 

-logjes for her nervous lau gh, spoke other companies to follow that lead. "While we support fee presi- numbers of low-skilled workers — 

But an Associated Press survey of dent's goal most of the jobs that including Safeway Inc_ J.C Penney 

to her fellow graduates. 

"We must take control of our the 100 largest companies in fee International Business Machines Co. and 
lives, every day knowing we have United States indicates that compa- Corp. needs to fill require highly Corp. and 

Inc.’s Taco Bell 
Corp. — have no 

the ability to nse to the top." she nies like Marriott are the exception specialized skills and training," plans to recruit people off welfare, 
said. “We have die ability to do as changes in fee welfare system said Fred McNeese, an IBM spokes- There were a few bright spots in 

1. The Led World: Jurassic 


2. Addicted to Urn 
1 The Rflh Element 

4. Breakdown 

&, Austin Powers 

5. Foyer's Day 

B.HIflWFnflson Mannattan 
9. Volcano 

la Rany aid MldieBrt Rasim 


(Columbia Pictures) 
t NewUMQnema ) 

(SoeSng FBms) 



149.1 adDan 

S9X miHioo 
S6 million 

SZ9 mRBoa 
SI 42 ndHon 


great things." 

It may have been a typical display world of work, 
of confidence for a graduate on Just eight of the companies have 

begin to pressure people into the man, reflecting fee sen timents 0 f the survey. United Airlines has cre- 

numerous companies. ated a mentoring program for wel- 

Jeffrey Joseph of fee U.S. Cham- fare recipients and plans to hire 

GM Workers 
End Strike in 
Oklahoma City 

The .Associated Press 

ion members returned to work 
Monday at a General Motors 
Corp. assembly plant, ending a 
strike that had idled 3,500 em- 
ployees for seven weeks. 

Maintenance workers of 
United Auto Workers Local 
1 999 prepared the plant for pro- 
duction shifts Tuesday, when 
most union members will be 
back. On Sunday, the local 
overwhelmingly decided to re- 
turn to work pending a vote on a 
tentative contract reached by 
union and GM negotiators one 
day earlier. 

That vote could come next 
week, said the local's president, 
Steve Featheraton. 

The focus may now shift to 
5,900 members of the United 
Auto Workers Local 594. 
which is still on strike over 
staffing levels at a GM truck 
assembly plant in Pontiac, 
Michigan. More negotiations 
were expected Tuesday. 

Employees struck the Okla- 
homa City plant on April 4. 
Workers complained fear nu- 
merous job-related injuries were 
occurring because fewer em- 
ployees were doing more work. 

GM said die two strikes had 
cost S225 million in lost pro- 





commencement day, but it was any- prog ram s in place to hire people her of Commerce put it bluntly: “If 2,000 people by 2000. Sears, 

thing but typical for Ms. Reeves and coining off fee welfare rolls and 15 there’s a molecular biologist Roebuck & Co. is developing a pa- Tn Olir RbRiIpFS 

the five other women crossing the others say they are considering or hanging out on welfare, he may fit tionai initiative and has hired nine AU VU1 awsouxuo 

fee potential job matrix of a major people off welfare in Tennessee. But Financial markets and banks in 

success will require more than a the United Stares and Britain were. 

bridge from welfare to weak. working i 

They are products of Marriott But 77 

working on initiativ es. 

of fee 100 biggest compa- pharmaceutical company." 

Corp.'s comprehensive training nies have no plans to hire anyone off Other companies said they were handful of companies. 

■ closed Monday for holidays. 


High Law Owe Pm. 

ttgh Low Don Pick. 

Monday, May 26 

Prices In local currencies. 


High Low Ckue Pm. 


AflkmzHdB 373 

Altana 1551 

BkBetfln 39 JO 

BASF 6620 

l Btc 5045 





Boon Co. 





Foils Amm 




Hurt Doughs 
1NG Group 






n, j 


Roni Dutch 
Unlever an 

VtoOns Klara 

37 JO 


89 JO 




































109 JO 
380 JO 



3640 3630 
14530 14340 
14840 14730 
266 26330 
11840 11540 
37J0 3730 
1(020 10230 

wj un 

19740 19670 
3240 3240 
8278 79.90 
6630 6350 
6530 6650 
9630 93M 
32840 32830 
9930 99 

173 176 

8840 8610 
5730 5640 
4030 40 

6830 69 

47i® 4740 
302 381 

242 24030 

109.10 10P.M 

9530 96 

19430 192 

17240 17140 

6040 6030 

175.10 1743Q 

10940 11038 
37340 366 

38240 380.90 

118 10840 
<370 4340 

235.10 23440 

High Low Close Pm. 
359 373 35940 

1530 1538 1562 
3930 3945 3938 
6440 6605 6638 
Barer Hypo Bk 5645 58 5640 5742 

Bay.Venstsbat* 7340 7240 7140 73 

Bayer 6640 67J7 6437 6545 

Beferadorf 9175 98 914B 58 

Boras 43JC *120 4330 42 

BMW 1463 1438 1461 1426 

CKAGCOtoflfa 17250 17040 171-50 170 

Cornraerriw* 40.75 50 40 l75 4945 

Dataller Benz 13440 13240 13445 13158 

Degusm 8230 8140 81.90 BT.90 

Deutsche Bank 9970 99.15 9940 9640 

Deut Tefakocn 40.10 3930 40 3940 

Milan HUB WwIIm: 12233X0 

P mta OT 140140 

Bks 29J9S 2675 2675 2975 AlMBUAafc 11350 11240 11250 11380 


High Low Close Pm. 

Total B 553 535 538 560 

UShor 90 8650 8675 ViM 

Valeo 35150 34540 3S3J0 358 


Bangkok BkF 
Kruno TTnl Bk 
Shun Cement F 
TM Always 
Thai Farn BkF 







41 JS 


358 355J0 3BL5D 


148.90 14630 



Fried. Kropp 


31 9 JO 





































605 JO 


ItA 0 































474J0 445 JO 


469 JO 






SAP ptd 

31 9 JO 315X0 316JQ 



SGL Carbon 

I74J0 173X0 173X0 
24450 240J0 242J0 



















391 JO 


97 JO 
















Coal 296 295 296 293 BooCOnanHol 

267 26650 26650 266 BCD FMeunm 

30625 304 30575 30275 BadRono 

in 18775 in in Benetton 

1630 1615 1615 1630 CredBoBnlOTO 

4550 45 4SJ8 4575 Edison 

2575 2458 2570 25 ENI 

15958 159 159 15850 Flat 

39J® 39 39.10 3870 GenmS Asdc 

3375 3250 3375 3270 IMI 

1935 19 1935 1945 IMA 

11275 11275 11275 11275 Man 

57 5650 57 5650 Mcrtasel 

2970 2945 2945 2973 Mediobanca 

346 278 278 305 Montedison 

St 55 5575 5675 Ofcdlt 

349 348 34650 348 PwraaW 

129 12625 129 12835 PMfl 

1645 1650 1675 1675 RAS 

106 9975 9975 1!® Rcta Banai 

17JD 1735 1745 1735 S Porto Torino 

OSS S 8635 8835 96 Stef 

Rembrandt Gp 4845 47.SS 471! 48 TatoamIMa 

Rfcbemont S3 6 4250 63 TIM 

RastPMtnum 7B 6950 6950 TO 

SABmnriU 12875 12775 12775 128 

Samancur 4775 47 4775 47 

50*4 5625 5S5D 5625 5550 — 

SBIC 208 200 205 213 

Tiger Oat* 7575 75 7575 

Afl 0 oAm-Corp 
AngtoAm Grid 
AngbAni Ind 

Fit NOB Bk 

Imperial Hdgs 



Johnnies tart 






3445 3350 3358 3450 q- d 

4570 <500 4508 4500 980 rfll 

1275 1245 1 265 1310 

23350 23100 23100 23250 BradOXOPM 
2515 2485 2505 2535 BrnlmaPH 

8320 8220 8220 8320 Gemlg Pfd 

B9Z® SSI® 9610 8990 CESPPfd 

5520 5400 5420 5465 Coort 

29400 29000 29050 29200 Betmbios 


Fosters Brew 
Goodman fid 
Id Australia 
Lend Lean 

Pncfflc DanJop 

665 635 645 6 B Pioneer latt 

779-50 77600 777310 77935 Pub Broadcast 
4640 4730 4640 4730 stGeargeBarti 
6090 5730 6070 5739 WMC 
1599 1530 1550 1560 WestpacBMng 
48600 48200 48600 4KUI0 woodsktaPet 

T537® '5100 15100 15455 mmfaancoPH 54000 53900 53900 54400 W tet hiorttn 
2*0 S75 CTO OB Light SenrtdQS 529.99 SKM 52600 529.99 




























































■ Ml 













5360 5265 5265 5350 

7650 758B 7585 7660 

10025 9900 9900 10070 pauUstaLuz 

1^ 1^ 1«5 SWNodonat 

507 496 4% 587 SaazaCruz 

2H0 2525 2535 2550 TtWmB PM 

3655 352 3565 3620 Teferrtg 

13550 13315 13320 13455 7 ^ 

17925 17500 1 7625 17705 TeiemPM 

10080 10750 10785 18735 Ur*onco 

8665 B515 6515 8710 u^ShaoPM 

4710 4630 4630 4700 CVRD PM 

5230 5085 5090 5255 

Ughto 35979 35570 35978 36QJOO 

PdrabrasPM 247J00 242JW 245u00 24200 

16600 15600 16000 155X0 — - - 

35X9 3570 3630 36X0 Taipei 
9^ 9 JO 9J0 970 

13640 137 JO 13640 137.50 Cathay LHe Ira 
151X0 150X0 1SL53 150151 
164X3 158X1 164X3 159X0 Q^TuraBk 
353X0 349X1 350X0 353X0 i>Stocif 

37X0 37X0 37X0 3770 

Stack Martel tadec 819166 
PititaE 81408 






151 151 151 

119 1197® 119 JO 
70 7050 JO 
116 117JD 116 

30 3020 3070 

119JD 117-50 117.50 118 

75 Montreal 


L19 1.17 1.19 1.19 HrstBortt 

2470 2450 2440 2440 K™SSptofc 73J0 WJO 73 67J0 

Huo Non Bk 110 115J0 11650 116 

IrtlCommBk msu 69 69J0 69J0 

■ 75 71 7450 71 


71 U 9 SlikiKongLHe , 92JD 91 91 JO 91 
Pmtaae 73US TohranSemi 11450 ill 113 

Kuala Lumpur 









































Docom 100000 95000 98000 100000 UmJSeraEtoc 

DoewOO Heavy 76t.' 6900 50 7680 UMWaridCMn 

SIS Hyundai Eng. 19300 issoo 1B400 IPioo 

■Ji W S SS KnMrtms 16100 15700 I57DO IfflWO 

322 KomoBPwr 26400 25900 26200 26400 _ . 

3^5 34V4 3470 Koieo Exrii Bk _60W 5550 5550 5810 Tokyo 

InS « KomoMobTel 380000 361000 378500 372000 

VJ Si 2* m UJSemtam 33500 31200 33300 WOO fiMnomah 

J® 39-™ ® PohrtlBlmnSt 58000 56500 57200 57500 XnZ. tt 

2W 2ai0 28W 28 Samsung Distay 44600 43500 43800 43900 - Nlppon ** 

las® 10X0 1690 IB^SJ TZSS TfS 5 

Bee Mob CM) 

_ tauv 


15X0 15X0 15X0 1570 GsMeta 

13J0 1110 1350 1110 GMMrtUtaOl 

2515 24X0 25 25 Umbcd 

SM 5X0 5X0 660 ImstosGip 

12M 19M 19® 1UV 16W ISM SomumBK 62500 61100 61100 61900 ™ 

— ’S ^ ^ JElSSp 0 * ^ ^ 31X0 ,mW ,M0 ° 10200 107 “ AmMOMU 

— n M jh) so ao AndilGiras 

57 HJB 
75 72 
69 68 


The Trib Index 

Prices as otSOOPM Mow Yak ttrm. 

Jon. 1, 1902 = 102 



18 change 

year to data 

World butex 




% change 


Regional kiduw 











N. America 





S. America 





industrial Indexes 
CapdaJ goods 





Consumer goods 




















Raw Materials 















T7w MamaOcnal HoaU Tribune Wcrid Sleek ktriox O tracks rite U.S. Honor vetoes d 
2B0 PfemabanaBy nvostabte stocks ImmUS countries. Formominlormaban,aftoa 
booMef is awaflobto ty wrfttap to The Trib Index, 181 Avonuo Charleo do GauSo, 

B2S21 NeuByCoaox, Franco. CompHed by OoomOerg Nom. 

3^9 “5 Poww 

3D 29X0 

080 845 665 BL60 QuefaecorB 2470 2540 2470 2478 

2625 2425 26 H Rogers CDBiraB 7.15 7.15 7.15 720 Singapore 

u 1 >5 “5 RoRSakCda 61W 60M 6116 40.10 

17X0 17 17 17 

11X0 ll.W 1U0 1UQ 
19X0 19X0 7940 19X0 
9J5 8X5 9 JO 9 JO 


Helsinki hex 


Pmtaae 3120X8 



Hbidast Paten 


Stole BkhKfia 
Steal AnmerflT 
Trta Eng Lora 









M tadec 37V1XS 
P n wtan 3786J7 
846 852 84575 

41775 4Z2 421 

92J0 93JM 9075 
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Daimler Encounters 
j Obstacles in China 

Joint Venture Stalls Over Cost Overr uns 


Bloomberg New. r 

BEIJING — The future of 
Daimler-Benz AG's SI billion joint- 
venture auto plant in China was in 
doubt Monday after one of its two 
Chinese partners said the venture 
faced “very complicated” 

Two years after the German com- 
pany beat out American rivals Ford 
Motor Co. and Chrysler Corp. to lead 
the project, negotiations have stalled 
over cost overruns linked to the re- 
moval of a duty waiver on imports of 
capital equipment last year. 

“It's very hard to say whether we 
will be able to form a joint venture or 
not,” said Qin Quanquan, deputy 
general manager of Hainan Auto 
Works, a partner in the venture. 
“It’s not looking very optimistic.” 

According to the plan agreed in 
l99S, Daimler-Benz's auto unit, 
I n ter c e des Benz AG, was to make 
the minivans in a joint venture with 
Nanfang South China Motor Corp. 

; Nanfang, a joint venture of Hain- 
an Auto Works and Guangdong 
Three-Star Auto Co., was to hold 55 


percent of the venture and Mercedes 
45 percent. Kurt Lauk, a Daimler 
board member who runs Mercedes’ 
truck division, said Daimler re- 
mained “confident" of reaching an 
agreement, adding that the minivan 
was “a class of vehicle which is 
sorely needed in China." 

“When you talk about China, the 
first thing you need is patience,” 
Mr. Lauk said in Stuttgart, Ger- 
many. “We continue to be inter- 
ested and are optimistic we will 
eventually reach an agreement.” 

Bickering between the Chinese 
partners has also cast doubts on the 
venture’s prospects. 

According to the plan, the venture 
was to produce 60,000 V-cIass 
minivans in Guangdong Province 
and 100.000 engines a year on Hain- 
an Island. Production was scheduled 
to begin in 2000 . 

Now, both plants want to produce 
the minivans, a move Mercedes is 
resisting to try to maximize produc- 
tion efficiency , reports on Monday 
quoted Jurgen Hubbert, a Daimler- 
Benz board member, as saying. 


NEW UNDER THE SUN — The electric-powered Ludole, 
built by Japan’s National Institute for Environmental Stud- 
ies, being showcased along with other manufacturers’ low- 
pollution models of today and tomorrow. Among other ex- 
hibitors at the Tokyo show were Honda, Mazda mid Nissan. 

Mr. Hubbert said Daimler-Benz 
wanted to stay in the China project 
“but not for any price.” 

Karin Malmstrom, a spokeswom- 
an for Mercedes-Benz China Ltd., 
said the company was confident the 
project would move forward. 

Daimler-Benz is trying to adjust 
the finances of the venture, partic- 
ularly in light of the extra import 
taxes that will be levied. 

"Mercedes and the Chinese part- 

ners are working to find solutions to 
these problems so that die project 
can be economically viable,” Mrs. 
Malmstrom said. 

Last year, the government re- 
moved a tax waiver on imported 
equipment for joint ventures, po- 
tentially increasing their cost by 
more than a quarter, according to 
some estimates. Mercedes officials 
met with their Chinese counterparts 
last week in Zhanjiang. 

Shanghai Pursues Shake-Out of State Sector 


'.SHANGHAI — Shanghai will lose 250.000 
jobs annually as it deepens the reform of its state- 
owned enterprises and allows 50 more compa- 
nies to go bankrupt, officials said Monday. 

“We will expand our pilot re-employment ser- 
vice centers this year to cover five more industries 
and 250,000 workers,” Ye Mingzhoog, deputy 
director of the Shanghai Labor Bureau, said. 

' Mr. Ye said new service centers would be set 
up for light industry and for tire chemical, build- 
ing-materials, machinery and electronics and 
metallurgy industries. 

There are now two centers providing retraining 
and helping laid-off workers in the textile and 
/instrument manufacturing industries to find jobs. 
4 The deputy directorofthe Shanghai Municipal 
Economic Commission, Xn Jianguo, said sep- 
arately that the municipal government expected 
50 bankruptcies among state-owned enterprises. 

; Stale businesses in China reported a record 
$83 billion in losses last year as they struggled to 

compete in the country’s increasingly open 
economy against private businesses, according 
to die State Statistics Bureau. 

Mr. Xu said 50,000 workers were expected to 

compared with the 30,000 laid off by 58 Shanghai 
state-owned enterprises that were allowed to go 
bankrupt between 1994 and the end of last year. 
He said 25 percent of Shanghai’s 1300 wholly 

Beijing Bidding Record 

Bloomberg News 

HONG KONG — Beijing Enterprises Hold- 
ings Ltd. drew bids for 1 JoO times the 15 million 
shares it offered in Hong Kong, according to a 
source, malting it the most popular share rale in 
the territory's history. Investors are betting that 
political connections will drive the profit growth 
of mainland-backed com pan ies, analysts said. 

state-owned enterprises lost money last year. He 
did not give figures for their losses. 

“We expect in the next few years there will be 
more bankruptcies than normal because we are 
resolving a problem accumulated over tbe past 
40 years,” he said. 

The government will speed up tbe process of 
bankruptcy, Mr. Xu said. The principle, 
however, is to encourage more mergers and 
acquisitions and fewer bankruptcies, be said. 

The reform of state-owned enterprises in 
Shanghai, which has also brought about some 
800 mergers and acquisitions, has cost 2.6 billion 
yuan ($313 million; in bad debts written off by 
the central bank and commercial hanks 

Tbe state-owned sector, employing as much as 
70 percent of Shanghai’s labor force of more 
than S million, was responsible for 30 percent of 
the workers laid off last year. According to Mr. 
Ye, about 150,000 warircs are still out of work, 
an unemployment rate of 2.8 percent. 

(AFP, Bloomberg ) 


BHP Drops 
On Word of 
Tough ? 97 

Cn qti e dfrrOwSt&FrrmllUpatdxs 

MELBOURNE — - Broken Hill 
Pry. warned Monday that full-year 
earnings would be flat and that it 
was not expecting profit to pick up 
until late in 1998. 

Tbe resource company’s shares 
dropped on the announcement, clos- 
ing 40 cents lower at 18.92 Aus- 
tralian dollars ($14.51). 

John Prescott. BHP’s managing 
director, said the restructuring of its 
steel and copper businesses, explor- 
ation expenditures and the loss of 
production from its Griffin oil op- 
erations would hit the company's 

“The fourth quarter is likely to 
have an outcome that seems to be 
below what some people assume it 
will be,” Mr. Prescott said, referring 
to the last quarter of BHP's year that 
will end Saturday. He said there 
would be “a number of abnormal 
adjustments” in its results that would 
be detailed when BHP disclosed its 
full-year earnings June 28. 

Mir. Prescott would not give de- 
tails of special items, although he 
did say the company would attempt 
to report any expected one-time 
charges now and would not spread 
them over the next year. 

An analyst at Macquarie Equities. 
Greg Yeatman, reacted by revising 
his BHP profit forecast downward 
to about 137 billion dollars from 
1.41 billion dollars. 

Damien Hackett, a resources ana- 
lyst at Hist Pacific Stockbrokers, 
said, “Our number is 1.45 billion, and 
thar’s as good as it’s going to get.” 

Mr. Hescott said that by May 
1998, BHP planned to commission 
new projects with a capital value of 
3.1 billion dollars. Other new con- 
tributions valued at 23 billion dol- 
lars are earmarked for the next year. 

But there is little to help the bot- 
tom line in the short term. 

“Other tilings are too small to 
have a big impact this year,” he 
said. “That’s why we see this flat 
situation extending into next year.” 
As for profit from new projects, he 
said, “You are not going to see it in 
early *98.” (Bloomberg, Reuters) 

Moscow Seeks to Make 
Gazprom More Open 

Waigel Vows to Uphold Tax Cuts 

He Says Measures Must Proceed Despite Budget Problems 

Ctm^Ad b!0*rS*#Prtm Dapadta 

MOSCOW — RAO Gazprom 
will sign an agreement with the Rus- 
sian government next month to cla- 
rify management control of the 
world’s biggest gas producer, a 
spokesman said Monday. 

Gazprom's chairman, Rem 
Vyakhirev, manages a government- 
owned 35 percent stake in Gazprom 
under a 1993 agreement that ef- 
fectively ensured management con- 
trol of the company- 

Analysts said the new agreement 
would increase shareholder value 

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Russia’s Norilsk 
Posts Huge Loss 


MOSCOW — RAO Norilsk 
Nickel, the world’s second-largest 
nickel producer, said Monday it was 
considering taking drastic steps to 
avert bankruptcy after posting a loss 
of 3393 trillion rubles ($571.8 mil- 
lion) for last year. 

Norilsk also said it might have to 
delay an issue of American depos- 
itary receipts planned , for late June 
because of the pom results. 

* -Bat executives and analysts said 
tbe loss did not mean tbe mining 
company had no cash to finance 
output One analyst said the com- 
pany might even understating is 
results to attract government atten- 
tion to its burden of social costs. 

It said die high costs of min i ng 
above the Arctic Circle, a heavy tax 

burden and the costs of supporting its 

work force try providing such ser- 
vices as schools and roads had con- 
tributed to the loss. The company 
^gaid foe loss pointed to possible 
bankruptcy and foe “impossibility” 
of increasing its solvency in the next 
half-year “without introducing the 
most severe measures.” 

(Bloomberg, Reuters) 


by requiring managers to report to 
the government on the company's 
finances four times a year and con- 
duct an annual audit 

Tbe agreement also would link 
Mr. Vyakhirev’s salary to the 
amount of dividends Gazprom pays 
the government, a Gazprom repre- 
sentative said. 

“Big dividends divert money from 
necessary capital investments, but in- 
sofar as Gazprom has good access to 
the fmaiOTal markets, it’s a positive 
step as it establishes collective char- 
acteristics for j udg i n g the perfor- 
mance of management,” said Yuri 
Batayev, a Russian gas analyst at 
Renaissance Capital in Moscow. 
“The new accord will be better that 
foe old one, becsaise it will be known 
what is going on with the company.” 

The Gazprom spokesman said die 
agreement would probably be 
signed in June. 

On May 12, the first deputy prime 
mi n ister , Boris Nemtsov, said 
Gazprom bad paid foegovernment 
only 20 bfifion rubles ($3.5 million) 
in tnvideods in the past two years. In 
May, PreadetrtBraTsYeUsin signed a 
decree forming a 10 -person oomnris- 
sioa to supervise the government's 
shares in Gazprom under the lead- 
ership of Mr. Nemtsov. 

That commission will decide how 
to vote the government’s shares, a 
decision that previously was Mr. 

The Interfax news agency report- 
ed that die new accord would also 
require Gazprom to guarantee equal 
access to its pipelines for all gas 

producers. . 

Separately, Gazprom said it had 
hired tbe Dutch bank ABN-AMRO 
and Goldman, Sachs & Co. of the 
United States to arrange a $2 billion 
to $3 billion financing program. The 
hanks said they expected to issue a 
Eurobond with a minimum value of 
$1 billion plus $500 million id $1 
bfflioo of convertible bonds for 
Gazprom within six months. 

(Bloomberg, Reuters ) 

r i ^iii r iy OTatf y« w ft >i a t n 

— Finance Minister Theo Waigel 
said Monday he would proceed 
with plans to reduce taxes even 
though gaps in Germany's budget 
had cast doubt on whether it coidd 
meet the standards for European 
monetary union. 

“It would be wrong to delay tax 
reform now,” Mr. Waigel said. 
“Exactly the opposite is neces- 
sary. We most change the tax 
structure so that in the future the 
state has a secure income basis.” 

Mr. Waigel made his remarks to 
a group of tax consultants two 
weeks after a government com- 
mission said Germany could ex- 
pect its tax revenue to fall by 18 
billion Deutsche marks ($10.63 
billion) in 1997. 

That would put Germany’s bid 
to join Europe’s single currency in 
1999 in doubt, as die nation's def- 
idr might then exceed tbe limit of 3 
percent of gross domestic product 
set out in the Maastricht treaty. 

Mr. Waigel proposed lowering 
corporate and personal income 
taxes in two steps, starting in 1998. 
Under that plan, personal income- 
tax rates would be reduced by as 
modi as 14 percentage points and 
corporate taxes by 12 percentage 
points to try to spur growth and 
create jobs. 

To finance the cuts, Mr. Waigel 
hopes to broaden the tax base as 
well as eliminate loopholes in the 

The opposition Social Demo- 
cratic Party opposes the plan, say- 
ing it is unjust ana creates 
“presents far tbe rich.” 

Talks between Mr. Waigel’s 
ministry and the Social Democrats 
to find a compromise on the tax 
issue brake down in April, ndfo 
each side accusing the other of 
Mocking p ro gre ss. 

Mr. Waigel also said he would 
not bow to pressure from tbe Free 
Democratic Party, foe junior part- 
ner in tbe governing coalition, by 
rulingout tax increases to finance 
tbe 1998 federal budget. 

“A finance minister who says at 
this point there will be no tax hikes 
would be irresponsible.” Mr. 
Waigel said in an interview with 
tiie magazine Der Spiegel. 

The Social Democrats' leader, 
Oskar Lafontaine, said Monday 
that “if a harmonization of tax 
systems does not take place, then 
European economic ana monetary 
union will be based on weak foun- 

Mr. Lafontaine said it was un- 
acceptable for EU countries to 
compete with one another fear jobs 
and investment by catting taxes 
and social contributions tor em- 

ployers and leaving it to workers to 
absorb the cost. 

(Bloomberg, AFX, Reuters) 

■ Gold Revaluation Is likely 

Bundesbank President Hans 
Tietmeyer said revaluing Ger- 
many’s gold reserves was an “ap- 
propriate move.” Bloomberg News 
reported from Heidelberg. Ger- 
many. But Mr. Ttetmeyer did not 
address the question of when might 
be the best time to take that step. 

“I think in general ft’s appro- 
priate to do that when we are mov- 
mg into the currency union, beeaxise 
most of the other countries have 
their gold valued closer to the mar- 
ket value,” Mr. Tietmeyer said. 

Mr. Waigel said on May 15 that 
Germany was ready to do whatever 
it took, including revaluing gold 
reserves, to ensure that Germany 
met the European Union’s single- 
currency requirements. 

Mr. Tjetoeyer, asked in an in- 
terview after a speech Sunday 
whether there was a danger that 
revaluing the gold reserves could 
be seen as “creative accounting,” 
conceded that the move could be 
subject to “misinterpretation.” 

“It is very i mp ortant how it is ■ 
done, when it is done and to what 
extent it is done,” he said. He said 
the Bundesbank’s policy-making 
council would discuss the issue. 

Czech Bank Intervenes to Help Koruna 


PRAGUE — The Czech National 
Bank intervened Monday to support 
foe koruna, which slipped after the 
release of data showing a wider than 
expected trade deficit for April. 

Official preliminary data released 
by the Czech Statistical Bureau 
showed an April shortfall of 1534 
billion koruny ($500 million), tip 

from a revised 13.08 billion koruny 
in March. 

The central bank has been battling 
speculators since last week, when a 
wave of short-selling pushed the 
currency to record lows on fears foal 
die nation’s growing current-ac- 
count deficit would inhibit growth. 

Traders said the bank began buy- 
ing tomay when foe currency 

slipped to 3.2 percent beneath the 
midpoint of its trading range, which 
is pegged to a basket of rates based on 
the (foliar and the Deutsche mark. 

The government last week an- 
nounced a package of measures to 
boost growth, xdfoxm the capital 
markets and generally restore faith 
in die country s commitment to rad- 
ical economic reform. 

CAR: Potential Buyers Are Cool to Indonesia’s ^National’ Auto 

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See our 

Bnsiness Mcwge Outer 

every Wednesday 

Continued from Page 17 

quest for such a panel, but it 
has said that it will strongly 
contest foe case. 

If Indonesia loses, it would 
have to end die offending pro- 
gram and compensate the 
complaining states or risk 
san ctio ns against its exports 
to their markets. 

Tunky Ariwibowo, tbe In- 
donesian minis ter of industry 
and trade, said the trade or- 
ganization's roles allowed 
developing countries to give 
temporary protection to in- 
fant industries and that In- 

donesia had until 2000 to ad- 
just its trade, industrial and 
economic policies, including 
its car policy. 

But Tbe Jakarta Post said 
in a recent editorial that the 
national car project was 
“seemingly guided more by 
nationalistic sentiment and 
politics than by industrial 

Referring to the $690 mil- 
lion loan that three Indone- 
sian state banks and 10 major 
private basics are preparing to 
provide to Timor Putra, the 
newspaper said that “given 
the power of the government. 

and in view of the ‘national’ 
label put on the Timor car 
progra m , those banks will 
have no other choice but to 
give tbe required loans, at foe 
great risk of suffering bad 

Despite the tax breaks that 
allow Timor Putra to sell se- 
dans at roughly half the price 
of comparable cars in Indone- 
sia, its vehicles are not selling 

Soemitro Soeracbmaf, 
president of PT Timor Dis- 
tributor National, the distri- 
bution arm of Timor Putra, 
said the company had impor- 

ted 22,000 cars since October 
but only sold about 14,000 — 
or 2,000 a month, for below 
its initial target of 4,000 a 

m onth. 

Analysts said sales had 
fallen short because of public 
concerns about foe viability 

of foe project and the quality 
of the Timor car, its after- 
sales service and its resale 

“Its a very unpopular car, 
politically as well as commer- 
cially.” an Indonesian busi- 
ness executive said. “It is 
seen as the product of vested 

Hong Kong 
Hang Seng 

14500 : - 

14000 > 

IBOk-Jlbr f 

J3K»Y- - iL - -f- 
12500 - V 
®o‘Tf mam 

srrigeqrore Tokyo . 

Straits Times Nikkei 225 . ■ 

2250 /Air — 22000 

2200 V— 210001- : 

^—4— ™V — ys 

m X — 

1Sa D J'F'M aTS ira00p * 1-B-M8W 

1996 1997 

1996 1997 1996 1997 1996 1997 

Exchange " fodax Monday Pnw. %' , 

Close Close Change 

Bong Kong Hang Seng . 14^74^4 14^31.68 -vlTO 
Singapore” Straits Tlmss 2J»€L32 2,05538 +6ipS 

Sydney AS Onfinariee 2£&MD 2,563.60 +OS3 

Tokyo. . Nikkei 225 2&O42LS0 20jmoD +0.tT 

KtnUe lumpier Ccfnposjte 1,081.19 LOCTBLab +558 

Bangltok SET 5Q8L36 5S1.13 "-2J2S0 

Seoul Composite Index 7t&89 73Q.S3 -1^8 

Taipei Stock Marttet Index 8.194.C5 8.144^8 +Q.62 

Wanda PSE dosed 2.598JZ0 . 

Jakarta Composite Index 66X2Q B58.52 +0.71 

Werengton N2SE-40 2^1 2^03.68 .*032 

Bopfoey Senaftive ?r5ac 3,781 jG 5 3,70657 4).l3 

Source.' T&tekurs lMOn»ianj! Herald Tribune 

Monday Prev. % 
;iose close -Change 
14«674 j 64- 14,331.68 +L70 
2j056u32 2.05&38 +0.05 
2JSMS0 2^63.60 +0.83 
2IMM3LSO 20jmO0 +0.17 
1,081.19 1.078J20 +028 

58&3S 581.13 . -2J20 

71089 730.53 -1-58 

» 3,70627 -0,13] 

IhchuuguuI Herald Tribune 

Very brief lys 

• Australia’s anti-monopoly watchdog began an investiga- 
tion and the government urged consumers to shop around after 
major banks failed to fully pass on an interest-rare cut. The 
treasurer. Peter Costello, said in Parliament that consumers 
should place pressure on banks to pass along foe half-per- 
ceniage-pomt interest-rate cut announced Friday by taking 
their business to institutions that offer better deals. 

• Chinese stock indexes fell in reaction to continued rumors 
about crackdown measures, this time predicting that 23 
brokerages would be punished for irregularities, brokers said. 
The Shanghai B index eased 0.249 point, or 03 percent, to 
82.138 points, while the Shenzhen B index plummeted 635 
points, or 4.47 percent, to 14634. 

• Thailand’s central hank has scaled back its 1997 growth 
projection for tbe country ’s economy to 5.9 percent, compared 
with 7.1 percent projected at foe start of foe year and the 6.4 
percent expansion registered last year. 

t Japan's Finance Ministry sought to defend itself against 
criticism for failing to uncover dubious loans made to rack- 
eteers by Dai-Ichi Kangyo Bank, saying it was impossible for 
it to unearth what a bank chose to hide. 

• Vietnam said inaccurate and dishonest reporting by man- 
agers at Nam Dinh Textiles Go. had led to $1 7 million in losses 
between 1992 and 1995 for the state. 

• Legend Group led personal-computer sales in China in the 

first quarter, the industry researcher International Data Corp. 
reported Legend’s shipments took an 83 percent share of the 
market Hewlett-Packard Co. moved into second place with a 
7.1 percent share. Reuters, Bloomberg 

Investor’s Europe 

■ “iSKBsa 


’•'VzsmiGFS yfWK-wvf -^»r 

Source: Tetefcurs 

I Herald Tribune 

Very brieflys 

•Baker Hughes Inc. agreed to buy the environmental-tech- 
nologies unit of Deuti AG, foe German industrial-plant 
manufacturer. The price was not disclosed 

• Bayer AG will cut its payroll by 1 billion Deutsche marks 
($591 million) a year until 2000 by reducing its work force in 
Germany by 1,000 people annually. 

• Mannesmann AG’s first-quarter sales rose 14 percent from 
a year earlier, to 8.1 billion DM, bolstered by results at its 
telecommunications unit, where sales rose 69 percent, to 1.4 
billion DM. 

• Daimler-Benz AG completed tbe merger of its automating 

unit, Mercedes-Benz AG, into foe parent company; 
Daimler’s chief executive, Juergen Schrempp, announced in 
January foe decision to do away with a separate manage ment 
board for Mercedes. 7 

•Austria’s revenue from tourism fell 13 percent, to 913 
billion schillings ($7.66 billion), in foe six months that ended 
April 30. 

• France’s consumer prices were unchanged in April com- 
pared with March bat were up 0.9 percent from April 1996. 

• Finland's Milk and Health Asso ciation said it h*H broken a 

23-year tradition by choosing a boy instead of a girt for its 
annual advertising campaign. Bloomberg. Return, AFP. AP 

Handlotcy Share Bids Open 

Bloomberg News 

WARSAW — The government opened its biggest 
initial public offering to date Monday, a 45 percent stake 
in Poland’s largest bank. Bank Handlowy SA. 

Small investors and institutions began bidding for the 
bank’s shares in a government-set price range of between 
28 zloty ($8.78) and 35 zloty each. Analysts said tbe range 
had been set low to attract individual investors. The bank 
is capitalized at about $1 billion. 

Small investors who bid for Bank Handlowy shares 
will receive a 5 percent discount through June 6, and 
afterward a 3 percent discount, on foe actual price of foe 
shares, which the government plans to set June 16 after 
foe bids are in. 

The government also intends to sell some Bank Hand- 
lowy shares to outside companies, mainly foreign banks, 
through direct sales. 

PAGE 20 

..Cipollini 1st Again 

cycling Mario Cipollini of the 
Saeco team equaled his personal 
record of four stage victories in a 
Giro d 'Italia when he narrowly won 
the 195-kilometer 10th stage into 
Taranto on Monday. Cipollini, who 
won four stages in the 1992 Giro, 
outsprinted fellow Italians Endrio 
Leoni and Fabio Baldato. 

Pavel Tonkov, the overall leader, 
and all his closest rivals finished in 
the main pack. ( Reuters ) 

Falace Joins Elite 

soccer A superb goal in the last 
minute by David Hopkin on Monday 
gave Crystal Palace a 1-0 victory 
over Sheffield United in the English 
first-division playoff at Wembley. 
The victory gave Palace a place in 
the Premier League. 

The match was deadlocked at 0-0 
in the 90th minute when Hopkin 
picked up a clearance from a comer 
and curled a shot into the top comer 
of the United goal from outside the 
penalty area. 

Last season. Palace lost the playoff 
2-1 when Leicester scored in the last 
minute of extra time. (AP, Reuters) 

• Staff at Munich's Olympic sta- 
dium were working Monday to re- 
store the pitch for Wednesday’s 
European Cup final after celebrating 
Bayern Munich fans carried off the 
turf. The fans ripped up the field 
after Bayern won the German title on 
the ground Saturday. (Reuters) 

Dane Whftehouse, left, of Shef- 
field United jumping Monday 
with Nigel Spademan of Palace. 

Canadiens Hire Coach 

ice hockey The Montreal Ca- 
nadiens hired Alain Vigneault as 
coach Monday. Vigneaiflt, 36, is a 
successful juniors coach and 
former Ottawa Senators assistant. 
He played parts of two seasons as a 
defenseman for the Sl Louis Blues 
in the early 1980s. (AP) 

Greens Against Games 

Olympics European Green 
party activists Monday launched a 
campaign opposed to all bids for 
the 2004 Olympics. 

“European Greens are taking 
common action to show the en- 
vironmental , social and fiscal cost 
that comes with hosting the 
Olympic Games in one or the other 
capital," the Greens said in a state- 
ment issued in Athens, one of three 
European cities bidding for the 
Summer Olympics. (AP\ 

^ HcralbS&ribunr. 


Sprint Stars 
Chase Gold 
And Sell 
Their Sport 

By Jere Longman 

New fork Tima Service 

EUGENE, Oregon — Having won a 
routine 200-meter victory Sunday at the 
Prefontaine Classic in 20.17 seconds, 
Michael Johnson could focus on 
something entirely different, not to 
mention spectacularly lucrative. 

Next Sunday in Toronto, he will race 
Donovan Bailey of Canada over 150 
meters for the right to be called the 
world's fastest man. While the title is 
unofficial, the $2 million purse is not. 

Bailey set a world record of 9.84 
seconds at 100 meters at the Atlanta 
Olympics, while Johnson shattered the 
200-meter record in 1932 seconds. Hie 
label of world’s fastest man generally 
has gone to the world record holder or 
Olympic champion at 100 meters, but, 
in this case, Johnson's time at 200 me- 
ters was faster than a doubling of 
Bailey’s 100-meter time. 

This is a false comparison, becanse it 
factors in two starts for Bailey. But 
intrigued reporters began clamonng for 
a match race and a Canadian promoter 
took the bait. 

Each man will receive a $500,000 
appearance fee, with the winner getting 
an additional Si million for less than 15 
seconds of work. The distance is rarely 
run and carries no official world record, 
but it rarely pays this well, either. 

There could not be a better time to 
spark new interest in a moribund sport. 
And, with a four-event undercard, a 
Blues Brothers concert and a two-and- 
one -half-hour time schedule, it will 
provide acrisp alternative to the average 
track meet, which can be as intermin- 
able as a political convention. 

"Track is not catering to the fans," 
Johnson said. “We’re being hard- 
headed, sticking to tradition. If you keep 
doing that, the only ernes in the stadium 
will be the officials and the athletes." 

Conventional wisdom has Johnson 
winning the 150-meter showdown, half 
of which will be run on a curve and half 
on a straightaway. He is more familiar 
with the distance, is a superior curve 
runner and, with the outside lane, he will 
have less of a curve to run. Johnson also 
tends to be in better shape than Bailey 
early in die season. 

Already, he has reeled off 400 carters 
in 43.75 seconds and 200 in 20.05 
seconds. The unofficial best at 150 me- 
ters was 14.93 seconds, run in 1993 by 
John Regis of Britain as part of a 200- 
meter race. 

“I don’t think anybody in the world 
can brat me at this distance," Johnson 

Bailey, who ran a 9.99 100 meters last 
week, has his own advantages: a home 
crowd faster pure speed, a patented late- 
racc charge and from the inside, the 
ability to see Johnson the entire race. At 
the Olympics last summer, he said “X 
can run down any man." 

“Yeah, it’s 50 meters farther than I 
usually go, but my entire career is in- 
volved in not setting any limits," he 

Ato Boldon of Trinidad the Olympic 
bronze medalist at 100 and 200 meters, 
said “It's going to have to be a big 
success to surpass everything else that’s 
going on in the sport. Attendance, rat- 
ings. If it doesn't do well in the ratings. 

I don't think we’ll see this anymore." 


WENTWORTH, England — Ian 
Woosnam of Wales made a faltering 
start before settling down on the back 
nine to win the British PGA title 
Monday by two strokes with a two- 
under-par final round of 70. 

It was Woosnam’s second British 
PGA championship; his first was in 
1988. On tins same course he also won 
the World Matchplay title twice, in 1 987 
and 1990. 

“I didn’t play my best golf today but 
I managed to get round" he said. “But 
the old heart was pumping a bit toward 
the end” 

Ernie Els of South Africa and Nick 
Faldo of England birdied the final hole 
for rounds of 70 to create a three-way tie 
for second with Darren Clarke of Ire- 
land who had a par on 18 for a 71. 

Woosnam, die 1991 U.S. Masters 
champion, finished with a total of 275. 
13 under par. 

Colin Montgomerie of Scotland the 
European No. 1, vaulted into fifth place 
with an eight-under-par 64, the best of 
the week and a day after carding a 76 in 
the (turd round 

■ Frost Sneaks Up on Colonial 

David Frost scored a quiet 67, in 
relative solitude two groups ahead of the 
duel between a cultural icon and a Texas 
everyman, to win the Colonial tour- 
nament, The New York Times reported 
from Fort Worth, Texas. 

It was not until Frost’s twisting 25- 
foot birdie putt dropped on No. 17 that 

anyone suspected that this quiet Dallas 
resident, by way of South Africa, could 
win. He finished the tournament at 15 
under par, for a total of 265. 

Then he sat on a veranda and waited 
for Tiger Woods and David Ogrin to 
complete 18 sometimes crafty, often 
ugly holes. Woods and Ogrin flew 
greens, stiffed short putts and saved pars 
with tentative lip-teetering strokes. 

For Ogrin^ who entered the final 
round with a one-shot lead and the 
swagger of being a self-professed “Ti- 
ger Killer" by virtue of a victory over 
Woods last year, the explosion came on 
the 15th hole. With one foot in afairway 
bunker, he left his second shot short of 
tire green. The 15-foot par attempt came 
up short He finished 2 over par for tire 
day and tied for second place with Brad 
Faxon at 267, 1 3 under par. 

“Colonial took a measure of revenge 
today," said Ogrin, wno had an 8- under 
62 Saturday. 

For Woods, the end was excruci- 
atingly prolonged until what had been a 
gently playing 1 7th hole. He had already 
survived an out-of-tbe-water double bo- 
gey at 9 followed by a bogey at 10. 

But Woods had an opportunity to win 
his third consecutive tournament until 
he whistled a pitching wedge over the 
17th green and tried to recover with a 
bump-and-run shot that found sand be- 
hind the fiagstick. He ended the round at 
2-over-par 72, for a total 268, tied for 
third with Paul Goydos. 

Woods declined to talk with reporters 
afterward, saying. “I didn't win." 



; MAT 27, 1997 .life* 

On a Strange Surface, 
Venus Looks Like Star 

But Sampras Looks Like a Winner 

* . */* * 

jj V" 9 


Verms Williams serving Monday to Naoko Sawamatsu in the French Open. 

Woosnam Hangs On 
To Take British PGA 

By Ian Thomsen 

international Herald Tribute 

P ARIS — Pete Sampras began the 
French Open looking like 
someone who might achieve tire 
career Grand Slam by tire end of next 
week. The same could not be said of his 
16-year-old compamot Venus Willi- 
ams. It might never be said of her. Yet 
she might become the tugger star. 

Between them they represented two 
edges of American success. Sampras, 
the world No. 1 for tire last four years, 
won his opening round match Monday 

Fkinch Ohn Timhis 

by c ompl e t ely dominating his French 
opponent. He was as ruthlessas he could 
be after suffering a strain of his left thigh 
just last week. Williams, by compar- 
ison, was entertaining. 

For long periods of her meandering 
three -set victory, more than a few treads 
in the cozy, medium-sized crowd would 
stop following the ball back and forth, 
their eyes fixed on her. Then she would 
make mistakes, like somebody trying to 
drive a car across a foreign city without 
a map. This was her first attempt at a 
Grand Slam tournament- With each un- 
predictable stroke her match grew more 
enthralling. It was in doubt to die last 
point, and by then everyone could relate 
to her, they could appreciate the dif- 
ficulties of her game mid what she was 
trying to accomplish — even though she 
looked, moved and sounded unlike any 
other cortiendiug tennis player in recent 

Williams is a statuesque 5 feet 11 
inches (1.80 meters). African- Americ- 
an. Hundreds of white beads dance in 
her braided hair with each step — you 
could hear them rustling when she ran 
nearby. When she jumped high at the net 
it was like watching one of the great 
NBA centers blocking a shot. 

The only thing somebody named 
Venus had in common with somebody 
else named Pete was their mutual, al- 
most nationalistic discomfort on tire 
dusty red clay that tire French insist 
upon sweeping onto tire courts at Ro- 
land Garros. 

‘ ‘I like the red clay, it’s nice, you can 
sliiude. I usually don't ever sliiiide that 
much into the ball," Williams said af- 
terwards as a 16-year-old would. 

Over the years Sampras, 25, has tried 
every strategy he could imagine to win 
in Paris, and now he is at tire peak age, 
which is to say that his chances might 
start diminishing soon. This year, in tile 
absence of a dominating favorite, might 
be the best opportunity he'll ever have. 

“This is tire only tournament that I 
haven't won, so 1’JU do whatever I can 
over the years and this year to win 
here," Sampras said after his 6-3, 7-5, 
6-1 victory over Fabrice Santoro. “It's 
the only thing left forme to achieve. I’ve 
won every other major, been No. 1 for a 
while, so this is the only tiling left.’’ 

Santoro. 24. had beaten Sampras in 
both of their previous meetings on 
clay .This time, however, Sampras 
wasn’t revealing any weaknesses. The 
ceater court crowd was a little disap- 
pointed about that. Late in the second 
set, after Santoro had fended off the first 
of three break points against him, his 
people went silent quickly. When their 
hero Henri Leconte used to be in these 
positions they would never shut up. But 
this time the courts were fast to the 

American’s liking — conditions that the* 
defending cha mpi on, Yevgeni Kafet* 
nikov, said were made for Sampras — 
anH more important, Sampras was huh-’ 
ting behind Santoro, controlling him;' 
like a knockout boxer who has finally* 
learned how to win on points. 

What will be the public reaction if 
Sampras becomes only the fifth man to 
win all of tire Grand Slam tournaments*' 
and tire first since Rod Laver in tbfc? 
1960s? For Sampras the issue of stardom 
lost i m port an ce long ago. All he wants is* 
to win. For somebody like William^* 
there are other, quicker options to faxrfK 
She is so charismatic and entertaining: 
that she might not need a record-setting 
career in order to satisfy American 
unique requirements for stardom. And In* 
tire open landscape of women’s tennis^ 
sire might soon have the chance to chal- 
lenge her skills at the highest level. I *’ 
Her 6-2, 6-7 (2-7), 7-5 victory over 
Naoko Sawamatsu of Japan was a credtf- 
to them both. After the first set Sawjp* 
matsu, who was five inches short eP/ 
might have felt overwhelmed. “Only 
when X was making the lobs," said 
Sawamatsu. who tried them twice, pre- 
dictably without success. 

In t tie third set they broke each othdft 
back and forth. Sometimes Sawamatsu- 
was overpowered; other times W illiam s 
was inconsistent. The first time Wil- 
liams served for the match, she double*' 
faulted twice. Other errors seemed to 
result from- her having to bend so fafn 
down, like a giant trying to play golf.'-*? 

There is talk that Williams might- 
become the Tiger Woods of women’s 
tennis. She is still learning to control het* 
body, and hasn’t graduated from high 
school yet. Other players win and hopeV 
that fame will come; for her it might 
the other way around. One more victoff 
could bring a meeting with No. 3 Mon- 
ica Seles in the third round. A quantung 
leap might be launched that day. 

Champion Starts 
With Easy Victory i 


Cmpdfd by Our Staff From Dispatches 

PARIS — Yevgeny Kafelnikov ’• 
of Russia, tiie reigning raenV- 
singles champion, started his de- ~ 
feme . at the French. -Open on 
Monday with a straight-set victory. • 

• He beat a Czech, Martin Danim, 

6-2, 6-4, 6-4, showing little effect - 
of the broken finger he sustained in 

The first seed to lose was No. 12 " 
Alberto Berasaiegui, a 1994 final- * 
isL The Spaniard retired in the fifth 
set with cramps in both legs. He " 
was down two games to one to '■ 
Andrei Medvedev of Ukraine. " 

Monica Seles of the United ■ 
States, the three -time champion, " 
steamrollered Miho Sadti of Japan - 
6-0, 6-3 in 44 minutes. " 

Mary Fierce of Ranee, No. 10, ■ 

• needed three sets to beat Tatiana 
Panova of Russia. The effort didn’t _ 
please French fans; some booed •_ 
Pierce as she left the court 
Fifth-seeded Lindsay Davenport' . 
of the United States brat Joanne tie - 
Kruger of South Africa 6-2, 6-3, . 
and an im seeded American, ; 
Chanda Rubin, beat Mariana Diaz- - 
Oliva of Argentina 7-6 (7-5), 7-5. I 


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Royals Survive Griffey Homer No. 22 

The Associated Press 

Bob Boone has figured out how to 
pitch to Ken Griffey Jr. 

“The strategy is. throw it over the 
plate and hide my eyes." the Kansas 
City manager sard Sunday after the 
Royals overcame a record-tying home 
run by Griffey to beat the Seattle Mar- 
iners, 4-3. 

"From now ou. I’m going to go into 
the bathroom while he bats. Tell me 
what happened." 

Griffey hit his 22d homer of the sea- 
son in the first inning, tying his own 

Baseball Ro und up 

major league record for most home runs 
through May. He has six more games to 
break the record, set in 1994. 

“I just love the game.” said Griffey, 
who also leads the majors with 59 runs 
batted in. “When you love the game, 
you just smile and come to the park 
every day. When you lose, you just 
smile and come back tomorrow." 

The Mariners lost when Chili Davis 
led off the bottom of the 1 1th with a 
homer off Bobby Ayala . Davis had gone 
hitless in his first four at-bats and stran- 
ded three runners. 

“It was a nice way to win it after I 
stunk the whole day." Davis said. “But 
that’s the way this game is.” 

n 13 ‘ Ra ?? er * 5 111 Detroit, 

Bobby Higgmson hit a grand slam as the 
Tigers handed Bobby Witt his first loss 
of the year. Witt (7-1 > lasted just 4'A 
innings and gave up six runs on eight 
nits. Higginson had four hits, and Bob 
Hamelw homered and tied his career 
high with three hits for Detroit, which 
rallied from a 3-0 deficit 

BIUO Jays 4, Angeta 3 I n Toronto, 

Benito s anuago(ftew a bases-loaded 
wdk from Rich DeLucia with no outs in 
tite bottom of the 1 1th inning after the 
Blue Jays took advantage of a mis- 

played fly ball to end Anaheim’s four- 
game winning streak. The Angels tied 
the game at 3-3 with two out in the ninth 
on reliever Mike Timlin's balk. The 
Blue Jays' victory was their third this 
season to come on a bases-loaded walk 
in their final ai-baL 

Brewers 1 1, White Sox 7 John Jaha hit 

a two-run homer and Jeff Cirillo had 
four hits as Milwaukee won in Chicago. 
Albert Belle extended his hitting streak 
to 20 games with a three-run homer in 
the first inning for the White Sox, who 
made five errors. 

huUams 7, Orioles 8 In Cleveland, Eric 
Davis and Rafael Palmeiro struck out 
with the bases loaded to end the game as 
Baltimore's ninth-inning rally fell just 
short. David Justice homered, hit a run- 
scoring single and scored three runs as 
the Indians took a 7-4 lead into the 

Twins 7, Athletics s In Minneapolis, 
Rich Becker's run-scoring single with 
two outs in the 10th inning gave Min- 
nesota a victory on the night Kirby 
Puckett’s jersey was retired. 

In National League Games: 

Dodgsrs 2 , Braves O Los Angeles 
showed that Atlanta does -not have a 
monopoly on outstanding pitching as 
Ismael Valdes and two relievers com- 
bined to beat the Braves at Dodger Sta- 

The Braves managed only seven runs 
in losing two out of three to Los 
Angeles. Ramon Martinez pitched a 
three-hitter as Los Angeles bear the 
Braves 10-3 Saturday night 

Valdes (3-5) allowed three hits in 
seven innings. Darren Hall and Todd 
Worrell finished with hitless relief. 

Denny Neagle (7-1) was trying to 
become the fourth pitcher in Braves 
history to start a season with eight 
straight victories. 

• T he , I 2 0d8ers scored just 22 runs 

in the 10 games started by Valdes. 

"I’ve been frustrated," Valdes said. 
“I've been pitching really good and 
haven’t been getting wms for tiife 

Cardinals 9, Giants 3 Todd StOt- 
tiemyre joined his father as a 100-gairife 
winner as Sl Louis won in San Franr- 
cisco. . J 

Stottlemyre (3-3) is 100-91 in 10 sea- 
sons with Toronto, Oakland and the 
Cardinals. Mel Stottlemyre was 164' 
139 from 1964-74 with the New Yoflt 
Yankees. -; 

Marlins 6, Patfane* 2 Bobby Bo nilla fast 
his second homer of the season aa^ 
drove in three runs as Florida won at San 
Diego. - 

RocklasS, Astros 5 Ellis Burks hit his *' 
fifth home run in six games and Wab 
Weiss hit the 20th homer of his career as 
Colorado beat visiting Houston. Burks 
had three hits and drove in two runs. For 
Weiss, who began his major-league ca- 
reer in 1987, it was his first homer In 18$ 
at-bats going back to last season. 

Pirates 8, Expos 8 Kevin Young, "5 
player without a permanent position if 
the Pittsburgh lineup, hit the first grapfl 
slam of his career as the Pirates won in 
Montreal. Young has played outfield, 
first base and third base. 

Rads 7, Cubs 5 Pete Schourek pitched 
the Reds past Chicago in an angry game 
at Cincinnati. 

Scott Servais and Jose Hernandez hit 
consecutive home runs in the fourth 
inning, and Schourek hit -Brant Brown 
with his next pitch. That brought the 
Cubs to the railing of their dugout to yeU 

at tiie pitcher and prompted plate umpire ^7 
Rich Rieker to warn both benches. /! 

In the sixth, Larry Casian hit the 
Reds’ captain, Barry Larkin, on the left 

• The games in New York between 
the Red Sox and Yankees and fa FJ 1 "' 
adelphia between the Phillies arid M«s 
were rained out. 

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A ‘Surreal’ Shot Gives 
New Life to Rockets 

Johnson's 3-Pointer Ties Series 

By Selena Roberts 

New York Times Service 

HOUSTON — The emotional re* 
lease occurred the split* second Eddie 
Johnson let go of the ball. As the shot 
followed its smooth arc, the reserve 
Rockets spilled off the bench and onto 
the floor. 

The ripe old Rockets were bouncing 
every which way. They knew the shot 
was going down. No question. There 
was not a single doubt among them. 

Yes, the Rockets, ex-champions, were 
still hungry. 

, Johnson's game-winning 3-pointer 
from the top of the perimeter with 0-2 
seconds left went through the net at the 
tenser like an Olympic diver. No 
splash. Perfect 3.0. 

. Once again, the 38-year-old with the 
baby-soft touch gave the Rockets a vic- 
tory against the numb Utah Jazz. Hous- 
ton won. 98-95, on Sunday to even this 
best-of-seven Western Conference final 
at 2-2. 

,_“It hung in the air forever. It was 
surreal," Charles Barkley said. "I don’t 
know what surreal means. Bui I heard 
someone say it once on TV. and it 
sounded smart. So this was surreal." 

L Johnson knew what Barkley meant 
And he had never experienced anything 
like it before. He was coming off a 31- 
point performance off the bench to carry 
his team to victory in Game 3, but this 
was different. One shot One victory. 

-."When I let it go, I said. ‘This baby 
has a chance to go in,’ ’’ Johnson said. 
“Everything was in slow motion. It 
went in and everything was a blur after 
that . It was by fvr the biggest shot I’ve 

,• Johnson, a 14-year pro, high-stepped 
it down the court, prancing past a Utah 


bench that was left stunned. In trying to 
deny the bounce pass from Clyde 
Drexler to Hakeem Olajuwon into the 
post with 2.7 seconds left, Utah’s Jeff 
Homacek left Johnson u> double team 
Drexler, Drexler then swung the ball to 
Matt Maloney, who flicked it quickly to 
Johnson. All Homacek could do was 
lunge toward Johnson in vain. All Jerry 
Sloan, the Utah coach, could do was 
shake his bead. 

"Well, 1 hope we know who Eddie 
Johnson is now/* Sloan said. "How can 
you double team and leave a guy like that 
wide open? It’s simple. You guard all 
five guys. If they beat you, make them do 
it on a tough shot. Eddie hh a tough one, 
but it was open. He hits those a lot" 

Johnson has hit the Jazz the hardest, 
kicking the tires on his game and finding 
out it still runs. Until Johnson's arrival 
in this series, the Jazz had been so 

Even after losing Game 3, they had 
solutions to that defeat, especially 
Malone. He just needed the ball more. 
So the Jazz granred Malone's request, 
feeding him the ball — continuous, un- 
interrupted, as if Malone's life de- 
pended on it 

This is how Malone wanted it The 16 
shot attempts be was given in Game 3 
seemed to insult him. He had 28 shot 
attempts Sunday. But he made just 10, 
missing driving lay-ups on Barkley. 

“If Ihad to evaluate my game. I’d say 
ir was pretty bad," Malone (22 points, 
10 rebounds) said. “If I had made more 
shots, we win. I didn't I don't have an 
excuse. I can handle it I just didn’t make 
them. Now everything is about Tues- 
day. That's the biggest game of the 
season now." 

Utah's edge in Games 1 and 2 has 
been sanded down a bit by the resilient 
Rockets. The team that looked as yel- 
lowed as an old newspaper clipping has 
perked right up. 

total SiBvi/ Ayncc ftincp-Pu cn e 

Eddie Johnson, who hit a 3-point shot as time ran out to give the Houston Rockets a victory, 
shooting over Antoine Carr and Shandon Anderson of the Utah Jazz earlier in the game. 


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NHL Playoffs 



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Jim Furyk, U5. 644747-73-270 

Flyers in Finals 
As Rangers Fall 

By Rachel Alexander 

Washington Past Service 

19S7. Ron Hextall and the 
Philadelphia Flyers lost to 
Edmonton's Wayne Gretzky 
and Marie Messier in the Stan- 
ley Cup finals. Ten years 
later, the Flyers finally have 
their revenge. 

Hextaii and the Flyers beat 
Messier and Gretzky’s current 
team, the New York Rangers, 
4-2. Sunday to win the Eastern 
Conference final, four games 


to one. and earn another trip to 
the Cup finals. Philadelphia 
will play the winner of the 
Detroit-Colorado series. 

In *87, Gretzky and Messier 
looked invincible while play- 
ing with the Edmonton Oilers. 
On Sunday, they looked tired. 
They didn't score in the final 
rwo periods and were limited 
to 10 shots. Hextall, named 
the playoffs' Most Valuable 
Player m ’87, didn’t get much 
of a workout. 

He said it seemed like it 
had been about 20 years since 
the ‘87 finals. 

The Rangers led, 2-1 , early 
in Sunday’s game, their first 
lead since Game 2. But a goal 
from John LeClair 15 minutes 
53 seconds into the first peri- 
od evened the score, and Rod 
Blind’ Amour's goal less than 
four minutes later put Phil- 
adelphia ahead. The Flyers 
never looked back, and 
Brind’ Amour added a second 
goal in die third period for 
comfort — and emphasis. 

The Flyers have won aQ 
three of their playoff series in 
five games and stayed relat- 

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ively healthy throughout. The 
older Rangers were beaten 
up. Four wingers — Bill 
Berg, Niki as Sundstrona, Pat 
FI alley and Ken Germander 
— were out. and Gretzky, 
Brian Leetcft. Bruce Driver 
and Doug Lidster all received 
pain shots before the game. 

Colin Campbell, the New 
York coach, blamed tbe 
team's poor health for (he 
loss, although he also pointed 
to the Rangers’ inability to 
kill penalties. Two of Phil- 
adelphia's goals came on the 
power play, including Eric 
Lindros’s opening score at 
5:18 of the first period. 

“Our penally kill was our 
downfall, as it has been all 
year, and that fed to the rest of 
the game not going well.'’ 
Campbell said “We always 
said getting the first goal was 
very important in this series.'* 

'Hie Rangers were unable to 
score first in any game as the 
Flyers dominated all bur 
Come 2. In that game. Phil- 
adelphia’s goal tender, Garth 
Snow, allowed five goals on 
10 shots before being replaced 
by Hextall. Since then. Hex- 
tail has played well, allowing 
seven goals on 92 shots. The 
defense the Rangers displayed 
in the first and second rounds 
was also missing, and Mike 
Richter, who allowed just 14 
goals in their first 20 games, 
allowed 19 in this series. 

Like Lindros, Brind’ Am- 
our has never been to the 
Stanley Cup finals, but he has 
already begun asking Hextall 
for advice. 

"It’s like Hexy said: ‘No 
one’s going to remember who 
finished second,"* he said. 
“We know we have a lot of 
work ahead of us." 

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Sex and Circulation 

Saul Bellow at 81: 6 A First-Class Noticer’ 

When the Cold War 
ended, die media found itself 
with nothing to write about. 
The Evil Empire sold news- 
papers, magazines and boohs. 
It produced tales of the 

CIA, the KGB 

and the British 
Secret Service. 

The threat of 
nuclear war 
stretched our 
minds and was 
good for circu- 

When every- Bucbwald 
one said fare- 
well to the Red Menace, it was 
with some urgency that the bar- 
ons of Press and Television 
met in a board room overlook- 
ing New York City. Ray Fire- 
stone. the Czar of Haiti News 
Programming, started the 
meeting by saying, “The Rus- 

An Ancient Mew 
Under the Sea 

Agerurjt France ■ Presse 

J ERUSALEM — Israel has 
established two underwa- 
ter archaeological parks to 
preserve sunken ships and 
other ancient artifacts dis- 
covered off the Mediter- 
ranean coast, officials an- 
nounced Monday. 

Divers off the southern city 
of Ashkelon will be able to 
view at least 10 ancient ships 
and their cargo dating from 
the late Bronze Age. about 
3,200 years ago, to medieval 
times. The artifacts were dis- 
covered by a diver after they 
were exposed by shifting 
sands caused by the construc- 
tion of a marina. 

A second underwater mu- 
seum is being opened off the 
northern port city of Haifa, 
where similar items have re- 
cently been discovered. 

sians are finished, but we must 
survive. What can we offer our 
customers when we are with- 
out a serious enemy?" 

Robert E. Curtis, King of 
the Tabloids, said, “I say we 
should replace the Kremlin 
with sex.” 

Marion Landew, the radio 
mogul, said. “Sex?” 

“That’s it!” said Fire- 
stone. “The readers want 
love, not war. I'’m going to 
order all my reporters to fea- 
ture adultery, love affairs, ho- 
mosexuality and any kind of 
heterosexuality that will sell 
newspapers. I've told my 
photographers to catch celeb- 
rities doing shocking things 
in public places, and if they 
can’t do it in public places, 
then on private beaches. 
We’re not doing this for cir- 
culation. but because the pub- 
lic has a right io know what’s 
going on behind closed 

The representative of The 
New York Times said, “We 
will never print gossip in our 
paper — although we will 
comment on it if someone 
else prints it” 

“But," asked Barbara Liu. 
owner of a suing of papers in 
the Midwest, “does this mean 
we will stop reporting on our 
armed services?” 

“No, bin we 'II only report 
what is going on sexually 
with them, instead of milit- 
arily. There is a lot of sex 
going on in all the military 
services that until now* we 
have ignored.”. 

“But,” said Landew. “sup- 
pose our readers don’t want to 
read anything about sex or the 
people who practice iL What 
do we do then?” 

“We force-feed it to them. 
Reporting about people’s 
private lives is a dirty busi- 
ness, but somebody in the me- 
dia has to do it.” 

By Mel Gussow 

New York Times Service 

B OSTON — Saul Bellow is “a first- 
class noticer/’ in common with 
Harry Trellman. the protagonist of his 
new novella, “The Actual.” The no- 
ticer. he said in a recent interview, “is 
the pussycat in the comer.” Bellow a 
pussycat? More likely his readers think 
of this Nobel Prize winner as an aging 
but still raging literary lion. 

The truth, of course, is somewhere in 
the middle. Sitting in his office at Boston 
University, where he teaches, and later 
over lunch, he conies across as a man of 
natural reserve and charm. A conver- 
sation with Bellow roamed widely 
through his life and work, and was 
sprinkled with quotations from com- 
mentators as diverse as Henry James and 
Henny Yotmgman. He began with 
James: “His advice to young writers 
was to uy to be one of those persons on 
whom nothing is lost.” Then, applying 
that statement to himself, he said, “u 
becomes second nature.” 

His approach is that of a newcomer on 
earth: “I’ve never seen the world before. 

Now I was seeing it, and it’s a beautiful. Bellow in his office at Boston Uni 
marvelous gift. Enchanting reality! And 

when the end came, I was told by the cleverest get it: Proust. Tolstoy, who was ; 
people I knew that it would all vanish. I’m not Strindberg and Joyce.” The a 
absolutely convinced of that. If you asked me him into the uncomfortable po 
if I believed in life after death, I would say I public servant in the world ot ci 
was an agnostic. There are more things be- In contrast to some writers wb< 
tween heaven and earth, Horatio, etc.” late in life, he has entered anew at 

At 8 1 , he continues his quest, unabated phase: shorter, terser Bellow, ser 
through 10 novels and many novellas and briefer signal.” His latest, “The 
stories. With his friend Keith Botsford as co- 104 pages. Early novels like 


Bellow in his office at Boston University: “You’re all alone when you’re a writer/’ 

Tst get it: Proust Tolstoy, who was still alive, or ter.” But there are others like “Henderson” ] 
not Strindberg and Joyce.” The award thrust and ‘‘Humboldt’s Gift” that he can return to t 
me him into the uncomfortable position of “a “with some pleasure.” Both have a strong < 
tyl public servant in the world or culture.” comic element, something that “always 1 
be- In contrast to some writers who wind down gave roe a surer touch.’’ 

late in life, he has entered anew and rewarding As with all things, he feels a sense of t 

editor, he has just published the first issue of tures of Augie March” and “Henderson the 

phase: shorter, terser Bellow, sending out “a encroaching time, and as he talked, he apo- 
briefer signal.” His latest, “The Actual.” is logized for sounding “veiy deadly.” Two 
104 pages. Early novels like “The Adven- years ago. he became sick after earing toxic 

ago. he was a longtime resident of 
Chicago. There were periods, however, 
when he lived in New York City and 
Paris, where he wrote “Augic March.” 
After he had published two short novels, 
he found himself blocked and in a state 
of depression. Walking the streets of 
• Paris, he suddenly bad a kind of epi- 
m phany. He remembered Chucky, a 
\ friend from his childhood. “He was a 
wild talker who was always announcing 
cheerfully that he had a super scheme. 
The memory of my affectionate friend- 
ship came back tome. I began to think, if 
be were sound and writing a novel, how 
would be go ax it?” Chucky became 
Augie March, and the book became 
Bellow’s breakthrough. As Cynthia 
Ozick wrote, it was a prose revoltajon 
that “turned over American fiction.” . 

Many yeare later, Chucky reappeared 
in the author’s life. By then a su ccessf ul 
businessman, he had recognized himself 
in the book and he was arpoyed Didn ’t 
he realize that be had achieved a certain 
immortality? Bellow laughed at the idea. 
“He had a different ‘i* in mind He 
thought of it as an intrusion. ’ * 

In such fashion, he has repeatedly 

re all alone when voxTre a write-.” based characters on real people. Htan- 

boldr on the poet Dehnore Schwartz, 

But there are others like “Henderson” Hcmderaon on Chandler Chapman, a so»,cf m 
d “Humboldt’s Gift” that he can return to the writer John Jay Chapman. “The 
vith some pleasure.” Both have a strong Connection” centers on the flamboyam.-. 
mic element, something that “always Broadway impresario Billy Rose. . 
ve roe a surer touch.” Bellow is always on the alert for sticir 

As with all things, he feels a sense of tales: “I have my ear to the ground. As I tzbs 
croachmg time, and as he talked, he apo- tosay.ifyouhaveyoureartothegroutBfc yoB 
pzed for sounding “veiy deadly.” Two either get a dirty ear or you hear the kk : 
ars ago. he became sick after earing toxic comoiive coming.” But if you don't watch ! 

his third literary magazine. News From the Rain King” had tumultuous canvases. In 
Republic of Letters. Bellow has won more common with his other recent work, the new 
awards than any of his contemporaries. Sev- book in cameo captures themes and passions 
eral years ago. The Sunday Times of London that have preoccupied the author: the often 
asked a selection of critics and authors to quixotic search for higher truths and a moral 
name the greatest living novelist in the Eng- purpose in life. As always, he uses fictional 
lisb language. Bellow won handily. instruments to probe the seemingly inexpli- 

He greets all honors with a grain of irony, cable malignancies of his society. 

“Every time you're praised, there's a boot In the introduction to a coll ecti 
waiting for you,” Ik said. “If you’ve been novellas, published in 1991, he : 
publishing books for SO years or so, you're college composition teacher. Miss 
inured to misunderstanding and even abuse.” who advised her students to writ* 

When he won the Nobel Prize in Lit- “to stick to the necessary.” In 
craturein 1976. he “took it on an even keel,” work, he disregarded that lessor 
he said. “There’s a secret humiliation con- back at his longer novels, he wo 

In the introduction to a collection of three 
novellas, published in 1991, he saluted his 
college composition teacher. Miss Ferguson, 
who advised her students to write short and 
“to stick to the necessary." In his early 
work, he disregarded that lesson. Looking 
back at his longer novels, he would like to 

nected with the prize, namely that some of simplify some of them. If he had a chance to 
the very great writers of the century didn’t rewrite “Herzog.” he said, “I’d do it bet- 

years aj»o. he became sick after eating toxic 
fish while on holiday with his wife on Sl 
M artin. Later, in Boston, his illness was 
diagnosed as ciguatera, an attack on his 
nervous system. During Bellow’s recovery, 
die neurologist asked him to write 
something, and all he could do was draw a 
tiny, cramped circle. 

Remembering that fearful moment, he 
said, “It was very weird, feeling that you 
didn't have command of yourself. The doctor 
cured me of that fast enoegh. or my creditors 
did because I had unpaid bills and’l couldn't 
sign the checks.” About two months later, he 
was well enough to write a story. “By the Sl 
L awrence,” which was a re-evocation of a 
traumatic episode from his childhood in 
Lnchine. Quebec. 

Before moving to Boston several years 

comotive coming. But it you don t wa tea 
out. you might be run over. ‘ ‘Well, you don’t 
get too close to the tracks.” - £?'. 

Bellow and his wife (his fifth). Jams. 
Freedman, whom he describes as “a genres : 
noticer.” divide their time between TJostoa. 
and their home in Vermont The novelist the 
quintessential urbanite: has a studio in the 
woods. Sometimes as he works, wild an- 
imals visit “I had a black bear come up to 
the screen door. I was writing a story. He 
watched me. I watched him. He was thinking 
it over." Then the bear went back into the 
woods and Bellow returned to his writing, 
immersing himself in the transformation of 
reality into a far greater fictional reality. 
Once again, he was trying “to fathom the 
mysrery of people you drink you know so 

T * 


E VEN as a student at Oxford. 

Oscar Wilde was clear about his 
destiny: “Success, fame or even no- 
toriety.” In a questionnaire he filled 
out in 1877, Wilde said his most dis- 
tinctive characteristic was “inordin- 
ate self-esteem” and listed himself as 
one of his four favorite poets. Yet the 
traits he most disliked in others were 
“vanity, self-esteem, conceit." The 
handwritten answers are in a two-page 
entry in an “Album for Confessions 
or Tastes, Habits and Convictions,” 
which is to be sold June 6 at Christie’s 
in London. The document includes a 
photograph of the 23-year-old Wilde. 
It is being sold by a descendant of 
Adderley Millar Howard, a theater 
impresario and actor -who collected 
the questionnaires. 

UPSET ON THE SET — U2’s lead singer, Bono, and the British model Sophie 
Dahl during the taping of the group's new video. U2 decided to shoot the video in 
downtown Kansas City, Missouri, in the middle of the band's 100-city tour. 

The Nobel laureate Alexander 
Solzhenitsyn has been discharged 
from the Moscow hospital where he 
underwent treatment for heart prob- 
lems, news agencies said Monday. 
Doctors say his condition is stable and 

he is able to recuperate further at home, 
Itar-Tass and Interfax reported. The 
78-year-old Solzhenitsyn entered the 
hospital May 12 after what doctors say 
was a mild heart attack. 

Kiss, those 1970s heavy-metal per- 
formers with painted faces, have just 
signed a deal to turn four of their hits 
into elevator music. Muzak’s Envi- 
ronmental Music has acquired the 
rights to feature instrumental versions 
of “World Without Heroes,” “Every 
Time I Look at You," “Sure Know 
Something” and “Beth." 

The Egyptian film director 
Youssef Chahioe on Monday crit- 
icized state television for bowing to 
pressures from Islamic militants and 
canceling the screening of one of his 
films, * ‘The Emigrant' ' The film was 
to have been shown Sunday as part of 
a tribute to Chahine, who won the 
50th anniversary festival prize at the 
Cannes film festival a week earlier. 

But the broadcast was canceled after 
an Islamic lawyer presented a copy of 
a court ruling forbidding it to be 
shown. The film, which Islamic fun- 
damentalists say is blasphemous, was 
banned in December 1 994, and a long 
legal battle ensued after a contradic- 
tory ruling in 1995. “The Ministry of 
Justice told me ihai 1 could show the 
film, but a guy over at die Culture 
Ministry is not sure," Chahine said 
“They are still hesitating." 

John Fogerty, the former 
Creedence Clearwater Revival 
front man renowned for his bayou 
rock roll style, has released a new 
album, “Blue Moon Swamp." 11 
years after his last one. “There was no 
way I was going to make a record that 
was no good," Fogerty told Time 
magazine. * ‘You keep going until you 
get it" His mind may have been on 
other things. Fogerty was caught up in 
legal disputes over his songs and his 
first marriage broke up in 1987. He 
has since remarried. And he refused to 

hurry the new album, spending more 
than three years learning the bottle- 
neck guitar style and dobro rather than 
hire studio musicians. “I'd lost the 
ability to create.” be said. “Fve found 
it again. I call it ‘the miracle.* ” 

Being Kramer doesn’t come easy, 
and the actor Michael Richards dis- 
likes the perception that he's perfect 
for the oddball “Seinfeld" pan be- 
cause he’s naturally weird, rather than 
because he’s a truly serious actor mas- 
tering a difficult role. “Journalists 
like to portray me as a madman.” 
Richards says in TV Guide. “When I 
talk about acting, I come across as 
addicted to perfection or obsessed. 
It’s not thaL It's just hard work. I’m a 
highly disciplined artist, and some- 
times I push too hard." 


The actress Elisabeth Shue is re- 
portedly expecting a baby around 
Christmas with her husband, David 

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Even' country has its own AT&T Access Number which 

makes calling home and to oilier countries really easy. 
Just dial the AT&T Access Number for the country, 
you’re calling from and we’ll take it from there. And 
be sure to charge your calls on your AT&T Calling 
Card. It’ll help you avoid outrageous phone charges 
on your hotel bill and save you up to 60 %? low rates 
and the fastest, clearest connections home 24 hours 
a day. Rain or shine. That’s AT&T Direct* Service. 

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Please check the list below for AT&T Access Numbers. 

2. /us* dial the AT&T Access Number lor the country you 
are colling from. 

2. Dial the phone number you’re calling. 

3. Dial the calling card number listed above your name. 

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AT&T Access Nugbere 

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MO0-1W-1D SSSinSntomA ...BM0-89-0811 

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W -800-1311 (saet 

.1-800-550-000 Saudi Aralilao 

172-1011 — 

- O8O0-8K-9111 G Has - 

755-5042 Kenya* 

... 009-98-00-11 Sootti Africa .. 

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177-1 00-2727 
- 1-800-10 

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