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In Markets’ Debris, 
A Humbled Asia 

Shows Uncertainty 

By Michael Richardson 

Intemarional Herald Tribune 

SINGAPORE— Suddenly, there is no more triumphal talk 
from Asian political and business leaders about a global 
economy dominated by Asia in the 21st century, or of the 

.CliniWivIIv Flinan'n, A n .V. ~..r. f ( .1 ' , . 

■supposedly superior Asian cultural values that would ensure 
eh dominr - " 

such dominance. 

Instead, the currency and stock-market meltdowns that 
spread in July from Thailand to other parts of Southeast Asia 
and then recently to Hong Kong, South Korea and Taiwan 
have caused a mood of nervousness and uncer tain ty across the 
region that was almost unthinkable just six months ago. 

Summing up that mood on a recent visit to China, Tony 
Tan, deputy prime minister of Singapore and a former banker, 
said that even now it was still too early to tell how the 
turbulence would affect Southeast Asia’s economies. 

It could lead to a ’‘short, sharp downturn like in 1985, when 
economies went down but recovered within six months to one 

An overview of the global outlook. Pages 10 and 11. 

year," he said. Or it might be "the prelude to a longer and 
more damaging recession that could last two or three 

. Clearly, growth will slow in many parts of eastern Asia as 
a result of higher interest rates — which were imposed to 
prevent currencies from going into free fall — loss of investor 
confidence, sagging consumer demand, stuttering business 
expansion, falling investment and government austerity mea- 
sures to cut spending and increase revenue. 

"Deflation, not inflation, is the real risk — and it is a much 

more potent and painful destroyer of earnings, assets and 

credit," Schroder Securities Asia Ltd. in Hong Kong warned 
in a report to investors. 

If the full consequences of Asia's troubles have yet to be 
seen, the causes are generally dear — at least to most 
economists and other analysts. A few government leaders, 
notably Prime Minister Mahathir bin Mohamad of Malaysia, 
continue to blame external forces rather than their own policy 
failings. - 

Turbocharged growth in die region’s developing and 

newly industrialized "tiger" economies for more than two 
' tible 

decades was an irresistible magpet to foreign money. 

Overseas and local banks competed to make loans to 
companies wanting to start activities or expand existing 

Huge amounts of investment went into stock markets and 
business ventures, luxury hotel and apartments, offices and 
golf courses, manufacturing and agribusiness. 

But too much of this money was squandered on un- 
productive projects, mismanaged or siphoned off into corrupt 

‘ ‘Nobody has ever thrown so much money at a region for so 
little return before," said David Roche, managin g director of 
Independent Strategy, a global investment research con- 
sultancy based in London. "We now know that having high 
savings and investment rates is not fine if they are wasted on 
golf course capitalism and do not generate exports and other 
productive returns." 

Mr. Roche added that be had seen developing countries 
"drown from bureaucratic incompetence, cbrruption or tri- 
balism, but never from an excess of capital inflows.’ ’ 

The economies worst affected by the financial turmoil — 

Thailand, Indonesia, the Philippines, Malaysia and South 
Korea — have certain common 


n features. 

They include yawning current account deficits, which are 
the broadest measure of the gap between a country’s spending 

See ASIANS, Page 10 


U.K. to Push Monetary Union 

LONDON (Reuters) — Foreign Secretary Robin Cook 
on Monday will declare Britain’s intention to use its 
approaching European Union presidency to give toe 
"best start" possible to a single European currency, me 

Foreign Office said Sunday. .. , . . , 

In a speech in Dublin setting out Britain s priorities for 
toe EU presidency from January through Jane, Mr. Cook 
will also make a strong appeal for«>eedy enlargement of 
toe European Union, a Foreign Office official said. 

The Foreign Office released brief excerpts on Sunday 
from an advance draft of Mr. Cook’s remarks. 

In them, he restates Britain’s determination to be an 
effected impartial moderator wben OTCUld^ons 
are made next year in preparation for the 1999 start ot 
economic and monetary union. 

Vfr^Tnnformmg Killer* brio Protogomlts o/ftoce 


Opinion .... 
Sports .. 

Page 7. 

’* J Page 7. 

Page 6. 

‘ — Pages 18-20. 

The intormarket 

Pages 4, 9. 

Paris, Monday, November 3, 1997 

No. 35.668 

KJi I* ll«K TV \v.ktj:m| ftr— . 

French truckers holding a meeting as they prepared to blockade a fuel depot in Bassens, north of Bordeaux. 

War and Peace in European Labor 

French Trucker Strike Raises 
Specter of Chaos on Continent 

Prodi Hails Accord to Cut 
Italy Public-Sector Pensions 

By Barry James 

International Herald Tribune 

By Alan Friedman 

Iniernauunal Herald Tribune 

. PARIS ; — Striking French truckers began to blockade 
roads throughout toe country Sunday for the second time in 
a year, threatening chaos in neighboring countries that rely 
on the trans-European highways running through France. 

Roadblocks were being set up by unions that would 
affect traffic from Spain, Britain, Belgium, the Neth- 
erlands, Luxembourg, Germany and Italy, and trucks ar- 
riving by ferry. 

The first effects were felt over toe weekend as private 
motorists, concerned that toe strike would be long, emptied 
pumps at many gas stations. 

The truck drivers warned that they would prevent trucks 
from entering or leaving refineries, gasoline depots and 
distributors, and block highways with trucks and concrete 

' ROME — Government and trade unions have sealed a 
long-awaited accord to reform Italy's bloated pension 
system in a deal that Prime Minister Romano Prodi hailed 
Sunday as * ‘a historic agreement that will guarantee that we 
qualify for European monetary union." 

Business leaders and the center-right opposition, 
however, criticized toe accord as being inadequate, and 
they blamed the government for making too many con- 
cessions to the hard-left Refounded Communists, who 
provide crucial support to toe government’s parliamentary 

The pension deal, which will- bring the treatment of 

public sector workers in line with toe private sector for the 

They also planned to disrupt industries in some parts of 

the country, such as sugar refineries at Reims. 

Prime Minister Lionel Jospin, toeing his first major 
conflict with organized labor, said his government had done 
everything in its power to avert the strike, and he appealed to 
unions and employers to call it off. He said the government 
would reduce the tax on trucks by 800 francs ($140) a year to 
enable employers to reach an agreement with the unions. 

Unions did manage to reach an agreement with an 
employers' association representing small and medium- 
sized companies. 

But toe deal was rejected by toe drivers, some of whom 
burned copies of theproposed text, and by toe Communist- 
led General Labor Confederation, which pulled out of the 
talks. The Federal Transport Union, which represents 80 
percent of the employers, also walked out of toe talks, 
saying it was not prepared to improve on its offer to increase 
salaries by up to 21.3 percent in gradual stages to an annual 

time, is toe central element of an overhaul of Italy's 
generous welfare state that envisions cuts of 4. 1 trillion lire 
($2.51 billion), or about a thud less than Mr. Prodi had 
originally hoped it- secure. 

Mr. Prodi, in a telephone interview Sunday, said that toe 
agreement, which is scsheduled to be presented in Par- 
liament next week us an amendment to the 1998 budget, 
was "the first of iLs type in Europe and puts Italy ahead of 
France and Germany in moving concretely toward welfare 

Welfare reform efforts are among toe goals of the 
governments of Chancellor Helmut Kohl in Germany and 
Prime Minister Lionel Jospin in France. 

In toe context of Italy 's drive to meet the single currency 
criteria of the Maastricht treaty on European integration, 
Mr. Prodi said toe pension accord "is the final step needed 
to be sure we meet toe target of a budget deficit that is 3 
percent of gross domestic product target not only this year 
but in future years.” 

Mr. Prodi stressed that Italy, unlike other countries, had 

See FRANCE, Page 8 

See ITALY, Page 15 

Contradictions of Britain as ‘Beacon 9 

By John Vinocur 

International Herald Tribune 

LONDON — It’s a tough business being "a beacon to 
toe world," finding a combination of ambition, perfor- 
mance and style so that your light, not neon, not a votive 
candle, shines just right for all to see. 

Barely a month after proclaiming Britain’s beaming 
course, its goal to become "the model 21 st century nation 

in Cnmfu ” P i i m n XAirtict/vr Trtnil TlUil 

and "to lead in Europe again,' ' Prime Minister Tony Blair 
ouble cf 

is running into trouble demonstrating how this grand com- 
mitment will come about 

Aloft in a spotlit sky of international esteem and great 
popularity at home, Mr. Blair talked four weeks ago at the 
Labour Party conference about making Britain a "pivotal” 
nation. In his keynote speech, the prime minister pointed 
the country toward the role of "beacon to the world" three 
times. “We may never again be the mightiest,” Mr. Blair 
said, “but we can be toe best” 

In toe context of toe morosity of Continental Europe, 
with its stagnant unemployment figures and widening 
extremes of poverty and wealth, this was bracing, the- 
atrical, unusual stuff. In tone and concept it was miles from 

toe technocratic mumble of European monetary union 
convergence criteria, and almost messianic in comparison 
with toe anxious caution of Chancellor Helmut Kohl 
pledging to cut German joblessness in half by toe year 2000 
and President Jacques Chirac promising an end to the 
"social fracture” in France. 

But the message may have been out of phase with reality. 
Less than a month later, Mr. Blair’s government, after 
signaling that it wanted to join toe first wave of countries 
establishing Europe's common currency in 1999, said last 
week that it would wait until after Britain's next elections 
four or five years from now because its economy was not in 
synch with those of France and Germany. Reflecting toe 
deep reluctance here to hand over a big part of British 
sovereignty to Europe, the decision, in fact, was a deflating 
signal of oonengagement, the reverse of a candidacy for 
leadership on a new scale. 

The government's choice pointed to a contradiction that 
has not attracted much attention amid toe relative euphoria 
of Mr. Blair's first months in office. It is toe idea that 
Britain, through Labour's acceptance of toe profound 

See BRITAIN, Page 5 

U.S. Grows Angry 
At Iraqi Defiance 

Military Response Not Rided Out 
Over Refusal to Accept UN Team 

By Brian Knowlron 

/firrHi.iii.ifut Herald T’lhtuie 

WASHINGTON — The White House accused Iraq on 
Sunday of "blaiam disregard” for toe United Nations by again 
blocking American members of a UN inspection team from 
entering toe country, and top congressional leaders said they 
would back toe use of force against Iraq if necessary. 

But there was no immediate sign that a U.S. attack was 
being prepared. 

Russia and France, both Security Council members, warned 
Saturday against any unilateral action to punish Iraq, though 

they strongly urged Baghdad to drop its ban on Americans on 

In Cairo, toe Arab League on 

toe UN arms inspection teams. 

Sunday rejected any military action. 

President Saddam Hussein of Iraq, meanwhile, led a cabinet 
meeting at which “required measures" to face possible U.S. 
military action were discussed, the official Iraqi news agency, 
IN A, reported Sunday. 

"Iraq continues to’ show blatant disregard for toe UN Se- 
curity Council and its resolutions." Barry Toiv. deputy White 
House press secretary, said from Florida, where no was ac- 
companying President Bill Clinton on a fund-raising trip. The 
Security Council will discuss the matter Monday, he said. 

Bill Richardson, the chief U.S. delegate to the United 

Nations, said that Washington hoped for a diplomatic rcs- 

vith I 

olution but would not negotiate with Iraq. 

"We are not seeking a military’ confrontation." he said on 
ABC-TV. ” but we’re not ruliMi it out." His words echoed 
U.S. warnings made in past confrontations when Mr. Saddam 
defied UN sanctions and was punished by limited U.S. air or 
missile strikes on military targets. “He has made a serious 
miscalculation,” Mr. Richardson said. He called the expulsion 
of toe inspectors "unacceptable." 

"He is in noncompliance, and he must comply,” Mr. 
Richardson said. At toe same time, he indicated that the United 
Stales was not yet prepared to act without Security Council 
support. "At this stage of Iraqi noncompliance.” Mr. Richard- 
son said, "it’s up to the UN Security Council to react.” 

Three American inspectors, who bad arrived on a LIN flight 
from Bahrain, were politely turned back Sunday at Habbaniya 
Airport, a military air field about SO kilometers (50 miles) 
northwest of Baghdad, according to diplomats. At least four 
other inspectors were admitted, but the diplomats and a UN 
official did not know their nationalities. The Americans were 
the some inspectors who had failed to moke it to Baghdad lost 
Thursday, the diplomats said. 

The team had been set to resume work Monday looking for 

See IRAQ, Page 8 

Election Funding: 
A Broken System 

Panel Exposed Fault in Both Parties 

By Guy Gugliona 

ICiuAjnxhwi P,«ji Service 

WASHINGTON — Senator Fred Thompson’s investi- 
gation of campaign wrongdoing came in with grand ex- 
pectations but ended with a whimper, wrapping up without 
proving Chinese espionage, influence peddling- or extortion, 
and leaving toe administration largely intact. 

But the White House can take cold comfort in withstanding 
toe investigation, because although it is widely seen to have 
fallen short of many of its stated goals, the Tennessee Re- 
blican's Governmental Affairs Committee revealed the 
Union presidency as a modem model of campaign ex- 


An almost endless parade of tapes, documents and wit- 


nesses showed the administration hustling indecorously for 
dollars: in White House coffees and sleepovers for big fund- 
raisers; at hotel galas with questionable characters 'whose 
source of income was suspect; taking business cards from 
strangers making big-bucks promises. 

The hearings left indelible images; Yah Lin (Charlie) Trie 
bringing a paper bag full of checks to the office of Mr. 
Clinton's legal defense fund, Buddhist nuns destroying doc- 
uments to mask improper campaign contributions after an 
appearance by Vice President A1 Gore. 

Not that tire Democrats were the only ones who roasted 
under toe committee's spotlight Despite bitter partisan 
wrangling that often brought hearings to a dead stop for hours. 
Mr. Thompson kept to his original commitment and let 
Republicans take some lumps — principally toe former na- 
tional party chairman, Haley Barbour, for his ardent courting 
of a Hong Kong business leader. This helped Democrats 
advance their core contention: When it comes to campaign 
improprieties, everybody does it. 

When Republicans crowed about racks of White House 
videotapes showing Mr. Clinton exulting over the way un- 
regulated "soft money" was used to promote his candidacy. • 
Democrats produced a tape of his Republican rival. Bob Dole! 
doing toe same thing. 

Fred Wertheimer, president of toe group Democracy 2 1 and 
one of toe leading advocates of U.S. campaign finance reform, 
said he was pleased that toe panel had "made an irrefutable 

See INQUIRY, Page 8 

Newsstand Prices! 

Andorra.. 10.00 FF Lebanon JJ-W 

Jiang Links ‘Mistakes 9 and Tiananmen 

By John Pomfret and Lena H. Sun 

WitsAinxianPrnr Service 

CAMBRIDGE, Massachusetts j- 
President Jiang Zemin of China has.for 
the first time in public used the words 
"mistakes" and ’‘shortcomings m re- 
sponse to a question about the 1989 
military crackdown on student-led 
protests around Tiananmen Square in 

JC ffjiang, 71 , did not repudiate the 
suppression of the demonstrations 

against corruption and one-party role, 
and be use! die terms in an oblique 
reference to Tiananmen. But his remarks 
after a speech Saturday at Harvard Uni- 
versity marked the second time during a 
weekloog tour of the United States that 
Mr. Jiang had surprised China watchers 
by departing from a formulaic justi- 
fication of Beijing’s limits - on human 
rights and political dissent. 

"It goes without saying that naturally 
we may have shortcomings and even 
moke some mistakes in our work. 

However, we’ve been working on a 
constant basis to improve our work," 

Mr. Jiang said in answering a question 
unisi Party chose 

about why toe Communist 
confrontation over dialogue in dealing 
with the students in 1989. 

The suppression of the student sit-in 
at Tiananmen Square left hundreds dead 
and hundreds more imprisoned or ex- 
iled. The crackdown badly damaged 
U.S. -Chinese relations and, more than 

s « JIANG. Page 4 Protesters .veiling at Jiang Zemin in Los Angeles, final slop of hk 1^7^ 


A ‘Factor for Good’ / Ex-Inmates Guide the Young 

Converting Ulster’s Terrorists to Peace 

By Warren Hoge 

Nfvv York Tima Service 

B ELFAST — In a land that is no stranger to 
horrific violence, the crimes of Robert 
(Basher) Bates were so savage that the 
judge sentencing him to 14 life sentences 
in 1979 said that they would “remain forever a 
lasting monument to blind sectarian bigotry" and 
that he should remain forever in jail. 

He and his gang of Protestant killers picked their 
Roman Catholic victims off streets at random and 
bundled them back to their Shankih Road com- 
munity where they methodically tortured them to 
death using knives, cleavers, axes and hatchets. 
They were known as the “Sh an kill Butchers.” 

A year ago, Mr. Bates. gained early release from 
prison and went to work in a co mmuni ty program 
aimed at deterring young people from following his 
path and to directing their energies toward a non- 
violent end of the “Troubles” that have claimed 
more than 3,220 lives since 1969. 

As striking as his transformation was, it is only 
one of more than 500 in Northern Ireland under a 
special program in which “lifers," men sentenced 
to “indeterminate" periods for killings and bomb- 
ings, have come out of jail prematurely. 

They emerge convincingly converted to the no- 
tion of peaceful struggle, educated in the practices 
of community development and disdainful of tra- 
ditional leaders who remain wary of joining the 
current peace talks. Officials can point to only two 
cases of a return to political violence. 

“In terms of energy, drive and commitment, it is 
the ex-prisoners who are driving the peace process 
forward the most vigorously,” said Michael Ritch- 
ie. information and research manager for the North- 
ern Ireland Association for the Care and Reset- 
tlement of Offenders. 

“They are turning out to be an enormous factor 
for good.” 

In effect, the pursuit of a nonviolent resolution to 
the sectarian strife is getting its greatest support 
from some of the conflict’s most notoriously violent 

Hie former prisoners. Catholics and Protestants 
who were once literally blood enemies, find that the 
common experience of having been in jail has 
enabled them to establish tentative channels of 
communication in the historically alienated atmo- 
sphere of Northern Ireland. 

‘ ‘I recognize their commitment to their cause and 
why they were led down the road to taking np die 
gun and the bomb the same way I did,” said Martin 
Snodden, a convicted murderer for die Protestant 
cause, speaking of fanner prisoners from die Cath- 
olic side. "It lads us to tty to find an accom- 

Mr. Snodden, 42, was released from prison after 
saving 15 years and is now the project manager of 
the Ex-Prisoners Interpretative Center, whifch cares 
for Protestant former prisoners. 

The sectarian violence that has roiled Northern 
Ireland over the past 28 years has produced more 
than 20,000 people who have served time for ac- 
tions taken in the name of politics. 

They usually are men who committed their 
crimes when they were teenagers and now are adults 

Cwtoa Lopn RuflLa/TbrSnrTfbrfcTutiiw 

Martin Snodden, a Protestant convicted murderer, talking to youths on Belfast's 
Shankill Road. Some former prisoners, from both sides of Northern Ireland's 
sectarian struggle, are now leading nonviolent efforts to overcome the strife. 

with children of their own and a personal concern 
for the nexr generation. 

Inmates jailed for political crimes return to their 
communities as figures of respect, the kind of 
people that youths fired by the desire to defend and 
promote their communities seek out 

“I’m an ex-prisoner, and when a young person 
comes up to me and says I want to join the struggle, 
I say, OiC, you want to join the struggle, do a 
degree in law or do a degree in medicine," said 
Micheal Ferguson. 44, an official of Sinn Fein, the 
political arm of the Irish Republican Army, who is a 
counselor with Tar AnalL a group that assists Cath- 
olic inmates. 

M R. SNODDEN, who, like many other of 
the former terrorists, got a university 
education while imprisoned, said many 
men now saw things as a class issue 
with themselves as lower caste “cannon fodder" 
exploited by the white-collar leaders who have 
dominated Protestant politics. 

“It was people from the working class who 
followed the leadership of the so-called responsible 
people. ' ’ he said, ‘ ‘but what has happened is that the 
ex-prisoners have just said. ‘No. We're the people 
who suffered the consequences, we're the ones who 
carried the coffins down our streets, who visited 
friends in prison and who have had to come to terms 
with having taken others’ lives.’ " 

The former prisoners stressed that while today 
they counsel people away from terrorism, they felt 
what they did years ago was the right response to the 
conditions of the time. The advice they give the next 
generation skirts any condemnation of past ac- 
tivities. “They have to make their own decisions, 
but we’ll tell them it most certainly is not an 
adventure, that it’s a rocky road,” said Eric McKee, 

.40, a Protestant jobs counselor who did 11 years cm 
bombing charges. 

“They’ve got a better chance than we did, be- 
cause they've got us,’ ’ he said. 

And the former inmates say their turning away 
from violence does not represent any backing off of 
their political convictions. Mr. Ferguson speaks 
angrily and repeatedly of living in an “occupied 
land," and Mr. Snodden said, “We haven't 
changed our position of loyalty to the United King- 
dom at alL” 

The ex-prisoner movement and its dedication to 
nonviolence was put to a test three months ago when 
the emblematic life of Basher Bates, gruesome, 
killer turned peacemaker, came to a violent end. As 
he arrived on die morning of July 11 to open the 
Shankill Road offices of Mr. Snodden’s organi- 
zation where he had been working with youths since 
his October release from jail, a gunman came up 
behind him and shot him in die back of the head. 

It was to emerge that his killer was not from the 
republican movement, as had been initially feared, 
but was instead the son of a Protestant man killed by 
Mr. Bates 20 years ago. 

on the Catholic community, and the young men Mr. 
Bates had been counseling were bent on revenge of 
the kind that has long characterized the sectarian 

Mr. Snodden, the onetime murderer turned com- 
munity counselor, took action. 

He went to a gathering of grieving and angry 
youths and told them they must not react with 

He spoke on his own authority and then invoked 
the word of one other person. 

“Retaliation,” he said, “is the last thing Bobby 
Bates wouldrhave wanted." 

On U.S.- 

By John Ward Anderson 
and William Branigin 

Washington Post Service 

McALLEN, Texas — Joel Martinez, 
a U.S. Border Patrol agent, and his dog 
Brutus were on routine patrol six 
months ago in Combes, Texas, checking 
freight t rains for illegal aliens when the 
. dog started whimpering, barking, and 
chewing the comer of a boxcar. 

...Mr,. Martinez looked inside. It was 
empty. But using crowbars and a blow- 
torch, agents discovered the source of 
Brutus’s imfia pginp agitation: more 
Than two tons ofmanjuana stashed 'be- 
hind false walls. 

The incident was but one recent ex- 
ample of how the U.S.-Mexican border 
■is under siege by Mexican drug traf- 
ficking organizations. The traffickers 
have vir tually unlimit ed funds to build 
the most elaborate secret compartments, 

■ to buy the best countersurveillance tech- 
nology and transport vehicles available, 
and to corrupt law enforcement officials 
on both rides of the frontier. 

' The southwest border is being at- 
tacked from all angles, with traffickers 
tunneling nnHw it. flying over it, walk- 
ing and driving across it and boating 
around it Based on the role of thumb, 
often cited by law enforcement offi- 
cials, that only 10 percent to 15 percent 
of the drug flow is discovered and 
seized, traffickers are delivering from 
five to seven tans of cocaine, marijuana, 
methamphetamine and heroin from 
Mexico to the United States every day 
of the year. 

That traffic is contributing to drug 
abuse and crime in the United States: 
corrupting the Mexican economy, ju- 
dicial system and government; and poi- 
. sorting relations between the United 
States and Mexico. But more imme- 

overw helmed ! 
being smuggle 
and acknowledge that geography, tech- 
nology, economic treads and the odds 
overwhelmingly favor the traffickers. 

..alice officers and officials both, m 
Mexico and the United States to allow 
drugs to cross the border.' While cor- 
mpoon in the United- States is believed 
to be episodic rather than systemic, of- 
ficials are worried that it appears ta be 
increasing. - 

• Drag-related crime and violence 
have made their way across Eke border as . 
well, with Mexican traffickers enlisting 
street gang members in U.S. cities a$ 
foot soldiers. Cities like San Diego and 
Phoenix are seeing a vicious new style 
of murder, while smaller communities 
along the border have experienced a 
rash of drug-related ki dn a pp i ngs . . . _ . . 

• Although the United Stases and 
Mexico have pledged at th e h ighes t levels 
of government to- work together in the 
fight against drug trafficking, cross-bor- 
der relations among authorities are more 
often characterized by suspicion and re- 
sentment" than by- cooperation. 

• The Mexican drug, gangs, as their 
influence reaches deeper into the US. 
heartland, seek to escape notice by im- 
mersing themselves in the fast-growing 
Mexican-Axnerican communities of . 
large cities. Some analysts worry that 
Mexican immigrants and Mexican 
Americans might be stigmatized by the 
drug gangs. 

Much of the. border region is hot. 




diately, it is wreaking havoc all along 
the 2,000- mile (3,200-kilometer) bor- 

der, distorting and destroying the lives 
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Azores Mudslide Toll Rises to 26 

SmokeForces Closure 
Of 7 Indonesia Airports 

LISBON (Reuters) — Rescue workers found eight more 
bodies buried under a mudslide in the mid- All antic Azores on 

Civil protection officials said 26 bodies had been retrieved 
so far from the mountain of mod that swept early Friday into 
die village of Ribeira Quente on Sao Miguel, biggest of the 
nine islands in the Portuguese archipelago. 

Am Irak and its workers have reached a settlement that 
averts a possible national passenger railroad strike, a spokes- 
man for Transportation Secretary Rodney Slater said. (AP) 

JAKARTA (Reuters) — Seven In- 
donesian airports were closed Sunday 
because of thick smoke from forest and 
bush fires that still blankets the coun- 
try's Sumatra and Kaliman tan regions, 
government officials said. 

They said four airports on Sumatra 
island and three in Kalimantan, on the 
Indonesian side of Borneo island, were 
closed because of the poor visibility. An 
official said the fires were still burning. 

of ranchers, police officers, federal and 
load officials, and people living in 
scores of southwestern towns and cit- 

“Texas is now where Florida was 15 
years ago, and we need all the help we 
can get," said Captain Enrique Es- 
pinoza, head of the Texas Department of 
Public Safety's narcotics unit in Mc- 
Allen. "We’re getting overrun by it.". 

The Mexican drug rings, which have 
replaced Colombian-based mafias as 
the primary traffickers of cocaine, 
marijuana and other drugs in many parts 
of the United States, have become so 
big, so powerful and such a dominant 
factor in the drug trade that U.S. law 
enforcement officials now speak of 
them in almost apocalyptic terms. ■ 

“I am not exaggerating when I say 
that the Mexican drug syndi cates are the 
premier law enforcement threat facing 
die United States today,' * the head of the 
U.S. Drug Enforcement Administra- 
tion, Thomas Constantine, told Con- 
gress earlier this year. 

What makes die Mexican drug or- 
ganizations more menacing than those 
of Colombia or Burma or Nigeria is the 
proximity — and the porousness — of 
the border, a thinly guarded strip sur- 

rounded by a rapidly growing region 
~ by tens of millions of Mex- 


leans and Americans. 

These are the main points that of- 
ficials make: 

• U.S. and Mexican authorities are 

■and desert, 

border crossings separated by hundreds 
of miles. But this desolate expanse is 
punctuated by bustling cities, sun-baked 
barrios and vibrant boomtowns that face 
each other across the border in pairx— 

San Diego and Tijuana; Calexico, Cali- 
fornia, and Mexicali; Douglas, Arizona, 
and Agua Pried; -El Paso and Ciudad 
Juarez; McAllen, Texas, and Reynoso 
Brownsville, Texas, and Matamoros. . 

Free trade between the United States 
and Mexico has drawn migrants from 
other parts of Mexico north to die border, 
where small factories and assembly 
plants have sprouted. People, money and 
goods move back and forth across the 
frontier in such profusion that the two 
sides are more tightly linked, econom- 
ically and socially , than ever before, this 
melding makes halting the flow of drugs 
across the border all text impossible. 

In recent years, drug mafias have 
bought big planes and built a fleet of 
two-man submarines to move drugs to 
the United States. They have secreted 
loads in propane tanks and containers of 
hazardous materials. One. trafficking 
group fashioned a mold that was used 
successfully to ship cocaine from Mex- - ! x 
ico through the United States and into ’ 
Canada sealed inside the walls of por- ' 
celain toilets. y 

The groups are using satellite-linked ' 
navigation and positioning aids to co- • t 
ordinate airplane drops to boats waiting 
in the Caribbean ana to trucks in the 
Arizona and Texas deserts. They are j 
outfitted with automatic weapons, j 
night-vision goggles and the latest high; j 

tech communications devices. 

In one case, after a wiretap went dead, 

U.S. agents discovered that the traffick- 
ers were calling each other on a video- if y 
phone and holding up written messages. . '■ . 

.*o' J 

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MONDAY: Belgium. Bolivia, 
Colombia, Ecuador. Japan and Panama. 

TUESDAY: Andorra, Panama 
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WEDNESDAY: El Salvador. 
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FRIDAY: Bangladesh, Russia. 
Tunisia and Ukraine. 

SATURDAY: Nepal and 

Sounrt: If. Morgan. Knam. Bloomberg 






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\t * Panel Doubted Nanny’s Intent to Kill, Juror Says 



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LONDON ■— No one on the jury 
convicted the British nanny Louise 
Wood ward of murder thought she meant 
j® ^ Happen, the American 

baby undo* her care, a member of the 
jury has told a British, newspaper. 

Jodie Garber said in an interview with 
TJe Mail on Sunday that the 12 raembere 
of the panel felt obliged to deliver a 
guilty verdict because of the judge’s 
instructions to them. 

"Nobody thought Louise intended to 
kill the baby," Ms. Garber said. “The 
judge’s instructions were that we had to 
decide whether a reasonable person 
would have known the actions she took 
would have resulted in the baby’s 

Ms. Woodward’s attorneys elimin- 
ated any chance of a man<ii anchor ver _ 

diet when they took a gamble that foiled 

I — a s k i n g die judge to limit the jury’s 
choices to first- and second-degree 
murder verdicts, or nor guilty. 

An alternate juror, Robert Mangold, 
has said he and the other three alternates 
were "heartsick" at the finding of 
second-degree murder. 

Ms. Garber said the jury A«ti ded from 

Away From 

the medical evidence that Ms. Wood- 
ward did cause the 8-monfb-old baby’s 
fatal brain injuiy and that it was not an 
accident. . 

But the jury believed it was an act the 
19-year-old committed in the heat of the 

"We’d rather have had a chance to 
consider a manslaughter option,’’ Ms. 

1 Garber said. "Nobody liken the finding 
wc felt compelled to reach. Nobody was 
1 happy having to do this. She’s a kid 
going to jail, and the baby’s dead, so 
what’s going to com e out of this that’s 

Ms. Woodward’s conviction Thurs- 
day in Middlesex Superior Conn 
sparked outrage in Britain and wide- 
spread criticism of the American legal 


On Tuesday, Judge Hater Zobel w£U 
hold a hearing to consider four options: 
declaring Ms. Woodward not guilty, or- 
dering a new trial, reducing the charges 
or allowing the life sentence to stand. 

The case of the ’RngKgh an pair has 
divided Britons and Americans almost 
as starkly as the O. J. Simpson trial di- 
vided whites and blacks. After the ver- 
dict, it was hard to find anyone in Britain 


who thought that Ms. Woodward was 

Somehow, her job, to help- Deborah 
and Sunil Eappen look after their two 
young children in Newton, Massachu- 
setts, went terribly wrong : But exactly 
how will never be dear. The prosecution 
said Ms. Woodward shook and probably 
slammed the baby against ahard surface. 
But an .expert for the defease team said 
Matthew’s injury was at least several 
weeks old, and Ms. Woodward said she 
shook the baby only to rouse him when 
he became alarmingly listless. 

In die United States, the case ag- 
gravated the guilt dial seems to penneate 
the lives of working parents. In Britain, it 
provoked anger at the parents as- em- 

"It would appear from her testimony 
that she was enslaved by her family," a 
lawyer sympathetic to Ms. Woodward 
told the British paper The Independent. 

The American criminal justice system 

seems to have been put on trial, too. 
There are severe limits in Britain on 
what can be reported about a trial. Bri- 
tons, then, were aghast at the prose- 
cutor’s pretrial statements to reporters 
amt at the Eap 

Eappens’ appearance on a 

• Martin Luther King 3d, 

the eldest son and nam^atrp 
of the first leader of the 
Southern Christian Leader- 
ship Conference, was elected 
the fourth president of the 
civil rights group over the 
weekend. (NYT) 

• Two and a half years after 

Terry Nichols walked into a 
police station to talk about the 
Oklahoma City bombing, the 
world is going to hear what he 
said, as his trial opens Mon- 
day in federal court in Den- 
ver. (Reuters) 

• An auction of Marlene Di- 

etrich’s personal items, 
mostly from the actress’s 
New York apartment fetched 
$659,023, twice the amount 
expected. Sotheby's Los 
Angeles said. (AP) 

• A tractor-trailer that wit- 
nesses said appeared to have 
run a red light collided with a 
Maryland school bus on a 
foggy Eastern Shore high- 
way. titling the driver of the 
bus and sending 28 children 
to area hospitals. None of the 
children were killed. (WP). 

• A former nurse who had 

held the police in Roby. 
Illinois, at bay for 39 days was 
apprehended when die 
stepped outside her rural 
home, apparently to cut the 
wire on a surveillance camera 
concealed in a bucket on her 
deck. She was taken to a hos- 
pital far psychiatric evalu- 
ation. (WP) 

• A 12-year-old girl in Sher- 

man, Texas, died from the 
burns she received trick-or- 
treating when her Halloween 
wig caught on fire as she 
brushed past a pumpkin with 
a candle in it. (AP) 


TAXING — Newt Gingrich, speaker of the House, taking questions on the 
reform of the Internal Revenue Service at a meeting in Kennesaw, Georgia. 

Clinton Colls for Gore 
To Be His Successor 

AMELIA ISLAND, Florida — President 
Bill Clinton left an elite gathering of his 
party’s top donors on Sunday by doing what 
none of his predecessors would have done 
in public. He campaigned for his vice pres- 
ident’s presutency. 

Befare leaving fotNew Jersey and'New • 
York to campaign for various Democratic 
candidates. Mr. Clinton pushed forward Al 
Gore for the presidential campaign of 
2000 . ••••-. 

A president, as the de fee to head of his 
party, traditionally adopts a neutral stance 
when discussing its next standard-bearer. 

Gazing out at a gathering of party loy- 
alists who had spent $5 O^XX) for die right to 
attend a three-day "Autumn Retreat" 
sponsored by the Democratic' National 
Committee, Mr. Clinton on Saturday night 
offered a brief summary of his accom- 
plishments. . 

••"But what I want to say to you is," he 
said, "if I hadn't been smart enough to pick 
Al Gore to be my miming .mate, none of it 
would have been possible." (Reuters) 

Reform Party’s Rebirth 

KANSAS CITY, Missouri — For those 
who thought, or hoped, the Reform Party 
was dead, think again: More than 400 del- 
egates and hundreds of supporters from 
every state gathered here over the weekend 
to begin the process of creating what they 
believe will be a viable third party. 

“I think the infi ghting with the Reform 
Party has gone on Tong enough,” said the 
interim party secretary, James Mangia, to 
the roaring approval of delegates. "Let's 
get on with building the Reform Party and 
saving America!” (WP ) 

Quote /Unquote, 

Alan Altshuler, an urban affairs specialist 
at Harvard University’s Kennedy School of. 
Government, on why mayors in many of the 
nation’s largest cities appear to be gliding 
toward easy re-election Tuesday: "There, 
was a sense for a long time that things were 
spiraling out of control and cities were be- 
coming jungles where it was dangerous to do 
business — let alone think about living. Now, 
if the economy doesn't seem too far out of 
whack, people are pretty grateful” (NYT) 




The Long Trek Westward 

A drive across the continental 
United Stares can feel long, but con- 
sider what it was like before the mod- 
em highway system was built 
In 1919, the U.S. Anny sent a 
convoy from Washington on a cross- 
country voyage to team how mo- 
torized vehicles, not fully tested in 
World War I, would perform. 

The convoy — a blacksmith shop 

track, a wrecker, two trucks with qpare 

parts, a gasoline tanker and two water 
trucks, a searchlight vehicle, a tractor, 
four kitchen trailers, five motorcycles 
with sidecars and assorted other 
vehicles — set out for San Francisco. 

Part of the point, American History 
magazine recalls, was to see whether 
the West Coast could be supplied by 

motor vehicles from the East in the 
event of invasion. 

The 300 soldiers on the trip were to 
assume that bridges and tunnels had 
been destroyed "by agents of an Asi- 
atic enemy.” Even without that, con- 
ditions were tougte Fewer than half of 
the roads were paved, and in the West, 
many woo little better than the rutted 
trails used by 19th century pioneers. 

Many of the drivers had never driv- 
en anything but plow horses. Some 
were heard to shout "Whoa!” when 
their machines went out of control. 
Some days the convoy covered only 
four mites. But the mission was a 
huge public-relations success. More 
than 3 million people saw it pass. 
Young girls offered sandwiches or 
coffee. Men intrigued by the sight of 
so much clanking machinery joined 
the army on the spot 

The army learned much from the 
62-day trek, including how desper- 
ately the nation’s road system needed 
upgrading- Dwight D: Eisenhower — 
a young lieutenant colonel at the time 
— as president four decades later 

signed the act creating the interstate 
highway system. 

Short Takes 

In 1966, the federal government 
began offering subsidies to schools 
that provided breakfast for needy 
c hildre n. Now, 5.9 million children 
get a subsidized meal each morning, 
nearly twice the number of 10 years 
ago. Educators say children who eat a 
nutritious breakfast tend to seme bet- 
ter on standardized tests, but many 
children avoid the meals for fear of 
being stigmatized as poor. Some 
schools are trying such incentives as 
"frequent eater" programs to lure 
more students to eat. 

The Salvation Army in Akron, 
Ohio, has set up credit-card (machines 
next to the kettles it uses for dona- 
tions. All major cards are accepted. 
The group hopes to increase its take 
and lower the risk of thefts. 

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television program, white the jury was 
still deliberating. 

Other articles commented that Boston 
was anti-British berianse of its high Irish- 
American population and that Ms. 
Woodward’s British reserve made her 
seem uncaring to Americans. 

A fund setup to help Ms. Woodward 
headed for £100,000 (5170,000) with 
donations flowing in from as far away as 

The "Louise Woodward Campaign for 
Justice" called for candlelit vigils at VS. 
Embassies around the world and urged 
supporters to Wear yellow ribbons. 

Flooding telephone lines at the Amer- 
ican Embassy and call-in shows with 
angry calls, Britons denounced the justice 
system that had an English teenager fe- 
eing life in raison across the Atlantic. 

More calls poured into the sole pab in 
Ms. Woodward’s hometown of Elton, 
with sympathizers from across the 
United States and Britain expressing out- 
rage at the au pair's murder conviction. 

“We won’t give up, 1*11 tell you that. 
We will make these people think twice," 
said Ron Deegan, who hung sheets out- 
side bis home bearing the slogan "Justice 
— No Way." (Reuters, AP. NYT) 

Inn lli-crr'llrai... 

An American demonstrating outside the court in Massachusetts. 

Democratic Candidates Feel the Pinch 

By Terry M. Neal 

Washington Post Sen-ice 

WASHINGTON — The Republican 
Party is pouring millions of dollars into 
this year's three major off-year elec- 
tions, far outpacing the efforts of the 
debt-burdened Democratic Party. 

For the Democrats, the trend is dis- 
concerting and a possible sign of what 
may come next year when hundreds of 
House, Senate and governors’ seats will 
be up for grabs. 

Because of the vagaries of cam p ai g n 
finance reporting deadlines, amounts are 
difficult to determine precisely, but Re- 
publican spending has far outpaced that 
of Democrats in the Virginia and New 
Jersey gubernatorial races, as well as die 
special election to fill die New York 
congressional seat vacated by Susan 
Molinari, a Republican, last summer. 

Republicans outraising and outspend- 
ing Democrats is hardly a new phe- 
nomenon, but die scale of the imbalance 
dusyear has rattled some nerves. 

The Democratic National Committee 
has been scrapped by a$15 million debt, 
largely the result of legal expenses re- 
lated to the continuing campaign-fi- 
nance scandal. In addition, the scandal 
has made fund-raising more difficult, 
especially for Democrats, and that has 
hindered the ability of national and state 
parties to work on behalf of candidates. 

Representative Martin Frost of Texas, 
chairman of the Democratic Congres- 
sional Campaign Committee, professed 
to be unconcerned about the dollar gap. 
"Republicans always outspend us," he 
said at a news briefing, “but I don't think 
there’s enough money in the world for 
the Republicans to stem the tide." 

Others are less sanguine. "We 
havea’t ever been ar this much of a 
disadvantage,' * said a senior Democratic 
congressional staffer, who asked not to 
be identified. "Nobody has any money 
to do anything." 

In Virginia, which does not have in- 
dividual campaign contribution limits, 
the national Republican Party has con- 
tributed more than 52 million to the 
campaign of James Gilmore 3d. Na- 
tional Democratic committees, on the 
other hand, have put about 5125,000 
directly into Donald Beyer Jr.’s race. 

In New Jersey — where Governor 
Christie Whitman is engaged in a close 
race with her Democratic opponent. 
State Senator James McGreevey — the 
Republican National Committee paid 
5760,000 for an "issue advocacy’' ad 
urging voters to remember the tax-hik- 
ing, welfare-boosting days of past 
Democratic governors. While Demo- 
cratic leaders, including President Bill 
Clinton, have raised money on his be- 
half. the Democratic National Commit- 
tee has not put Up money for television 

ads to counter the Republican effort. 

In New York's 13th congressional 
district race, the Republican National 
Committee has paid 5791,000 for 30- 
second issue ads that attack the Demo- 
cratic candidate, Eric Vitaliano, but do 
not mention the Republican candidate, 
Vito Fossella. by name. Because the 
Democratic National Committee did not 
mount its own effort, Mr, Vitaliano wAs 
forced to finance ads out of his own 
campaign coffers. 

“This year, the Republicans have an 
enormous advantage in all of the key 
races," said Lany Snbato. a political 
science professor at the University of 
Virginia, who has studied all three races. 
“The Democrats just haven't proven 
able to compete.” 

Democratic campaign officials ac- 
knowledge the disparity, but try to play 
down its significance. They accuse the 
Republicans of trying to buy elections. 
And. they argue. Democrats will win 
with good, old-fashioned footwork and 
volumeerism. For instance, in New Jer- 
sey and New York, organized labor has 
played a vital role not only in raising 
money for Mr. McGreevey and Mr. Vi- 
taliano, but also in helping knock on. 
doors and work phones. 

"If you don’t have gasoline, the car. 
won't go," said a Democratic poll-taker,- 
Harrison Hickman. "You have eo have - 
money to run a political campaign." 

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page 4 




Island Dispute Contorts 
Japan-Russia Summit 

By David Hoffman 

Washington Post Service 

MOSCOW — The leaders of Russia 
and Japan wound np a Siberian summit 
meeting Sunday pledging to finally re- 
move a long-standing roadblock to good 
•relations — the 60-year failure to sign a 
World War n peace treaty. 

But no sooner did the bear hngs and 
losses end between President Boris 
Yeltsin and Prime Minister Ryu taro Ha- 
shimoto than Moscow put a key limit to 
>hat it was willing to concede. 

The Russians said they would not sur- 
render the Kuril Islands, which the Soviet 
Union seized from Japan near the end of 
World War H The islands’ .status is the 
■sticking point between the two sides. 
Japan has long demanded the return of 
the islands, which it calls the Northern 
Territories, before it will sign a treaty; die 
dispute has hindered the development of 
political, military and economic relations 
between Moscow and Tokyo. 

In' any case, the two sides gave them- 
selves two years to work on a solution. 
After the meeting in Krasnoyarsk, they 
pledged to “make maximum efforts to 
conclude a peace treaty by the year 
2000," Mr. Hashimoto said. 

“This is a major breakthrough,” Mr. 
■Yeltsin said. 

The leaders tried to produce progress 
on other issues and not let the islands 
dispute stand in die way. They proposed 
to bolster Japanese trade and invest- 
ments in Russia, cooperate in devel- 
opment of oil pipelines and an upgrad- 
ing of the Trans-Siberian Railroad, and 
train Russian business managers in Ja- 
pan. Military leaders' from both coun- 
tries will visit one another and consider . 
whether to hold joint peacekeeping and 
disaster rescue exercises. 

Such agreements reflect a recent will- 
ingness by the Japanese to take some 
steps toward warmer relations, with the 
practical benefit of getting access to 
Russia’s abundant natural resources and 
potential market for Japanese goods. 
However, Tokyo has shown no sign of 
putting die territorial issue aside. 

From the Russian point of view, the 
summit meeting was meant to show the 
Japanese that relations can progress de- 
spite Moscow’s hold on the Kurils. Mr. 
Yeltsin was dearly sensitive that the 

pledge to work out a peace treaty not be 
interpreted as a surrender. The faie of 
the islands has become a matter of pride 
to Russian nationalists. 

Immediately after the dose of the 
two-day talks. First Deputy Prime Min- 
ister Boris Nemtsov said that Mr. 
Yeltsin was bound by the Russian Con- 
stitution to maintain the country's bor- 
ders and therefore the Kurils. 

The government news agency Tass 
floated proposals to give Tokyo special 
status, short of sovereignty, on me is- 
lands. Japanese would enjoy special 
economic access and even rights of res- 
idency for Japanese citizens. “In the 
future, the South Kurils could become a 
jointly controlled zone," it said. 

Russia’s insistence on bolding the 
islands is curious, considering that din- 
ing the breakup of die Soviet Union, 
Moscow gave up pieces of land that 
were in its control far longs and whose 
histories were bound much mare tightly 
to Russia's. 

In 1956, the Soviet Union and Japan 
normalized relations without si gning a 
peace treaty, although the Soviets 
pledged to return the islands when such a 
treaty was finalized. But they reneged 
after Japan signed a security treaty with 
the United States. In 1973, the Soviet 
leader Leonid Brezhnev brusquely told 
Tokyo thin there was no territorial dispute 
and that the Kurils were Moscow's. 

The days for (hat kind of tough talk 
seem over. Mr. Yeltsin went out of his ' 
way to strike a fast friendship with Mr. 
Hashimoto. By die end of the visit, they 
were calling each other Boris and Ryu. 
The Japanese leader presented Mr. 
Yeltsin with a camera, fi shing rod and a 
cartoon film about Russian and Jap- 
anese sailors. Mr. Yeltsin gave Mr. Ha- 
shimoto two wolf hides and gems from 
Siberia. They both dressed informally 
— the talks were billed as a “summit 
without neckties.’’ 

In what is becoming a kind of post- 
Cold War craze, the two leaders pledged 
to set up a hot line between them in case 
of a crisis. Mr. Yeltsin already has sim- 
ilar telephone lines to six other capitals: 
Washington, Bonn, London, Paris, 
Beijing and Seoul In Washington last 
week. President Bill Clinton agreed 
with President Bang Zemin of China to 
set up their own hot line.- 

Sharif Moves to Entrench Authority 

By. John F. Bums 

Ne*‘ York Times Struct 

PAKISTAN TENSION —A boy passing tires that were set ablaze in Karachi by protesters 
Sunday after a grenade attack by unidentified assailants killed three Sunni Muslim leaders. 


Hun Sen Denies Prince 
Can Return to Politics 

PHNOM PENH — The Cambodian leader, 
Hun Sen, appears to be standing firm on his 
insistence that deposed Prince Norodom Ranar- 
iddh could not take part in elections next year. 

The United Nations said last week that a letter 
from Hun Sen had indicated he would agreeT to 
allow Prince Ranariddh to return to Cambodian 
politics without fear of prosecution for alleged 
political crimes. 

Over tiie weekend, Hun Sen’s office said UN 

Hun Sen’s assurance that politicians who tied, in 
the wake of Hun Sen’s takeover could return. It 
said this did not apply to the prince. (Reuters) 

Ramos Attacks Corruption 

MANILA — President Fidel Ramos vowed 
Sunday to free the Philippines from official 

corruption before he leaves office next June. 

“I’d like to leave behind a bureaucracy with 
unquestioned integrity, efficiency and credib- 
ility/’ the president said in a statement. 

Partial statistics released by the presidential 
palace said the civil service commission had fired 
152 officials from July to August this year for 
fraud, including falsifying documents. (Reuters) 

Street Fighting in Dhaka 

DHAKA, Bangladesh — - Thousands of polit- 
ical activists battled the police here while law- 
makers of the main opposition continued their 
months-long boycott of Parliament. 

The Bangladesh Nationalist Party said its 113 
legislators would not return to Parliament until the 
government stopped “repression of opponents 
and allowed them to talk freely/’ It called for a 
half-day general strike in Dhaka on Tuesday. 

Party activists, backed by militants from smal- 
ler rightist parties, threw home-made bombs and 
stones at die police and engaged in fist-fights, 
witnesses stud. . . (Reuters) 

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Continued from Page L 

eight years later, was a shadow 
over Mr. Jiang’s summit meet- 
ing tySh PresidemBffiCKnton 
last week. That meeting, the 
first between the nations’ lead- 
ers since 1989, was designed 
by both as an opportunity to 
outline common interests arid 
areas of coopenttioa 
Mr. Hang’s appearance al 
Harvard was met by the 
largest, loudest and most 
emotional protest of his U.S. 
visit. As a drizzle turned into a 
chilling rain, a throng of ac- 
tivists chanting slogans for 
freedom and democracy in 
China and Tibet and “Shanie 
on Harvard’’, overwhelmed a 
competing group of Chinese 
student organizations waving 
Chinese and U.S. flags to wel- 
come Mr. Jiang. 

as it embraces more open 
markets, Reports this year that 
some Communist Pasty offi- 
cials were pushing^ for a re- 
evaluation of tire Tiananmen 
crackdown have not yielded a 
change in the government’s 
position. It has termed the stu- 
dent demonstrations a “coun- 
terrevolutionary rebellion’’ 
and has denied that they were 
motivated by patriotism. 

. In a news conference in 
Washington with Mr. Clinton, 
Mr. Jiang called the Tianan- 
menriemonstrations “politic- 
al disturbances” and defen- 
ded the violence against tee 
protesters as “necessary meat' 
sures according to the law.”. 
Still, Merle Goldman, a 

Although protests have 
shadowed the Chinese leader 
at every stop, he had been 
well-shielded from demon- 
strators- before Saturday. As 
his motorcade of black lim- 

of several 



'UW wvuuvtOLUp CUJUU. 

‘Jiang Zemin go home!” 
One protester set a small 


i ton University, said she z 

found “unprecedented” Mr. J 

Jiang’s use of the words “mis- ^ 

takes” and “shortcomings.” 

"The very fact that he ad- 
mitted there were problems in ‘ 
Ihe broader context was very 
unusual,” she said. 

Mr. Jiang made the remarks 
after a speech in which he 
urged his audience to look at 
China not through the prism of 
Western eyes but with an un- 
we was con- derstanding of its culture and 
ge white and history. The address reflected 
ibef banners themes thafMr. Jiang had been X. 
iMiHant. voicing during his visit that ' 
human rights are re lativ e con- 
cepte and that China’s need for 
stability and economic devel- 
opment are more" important 
than political liberalization. 

The remarks marked tee 
second time on his trip that 
Mr. Jiang appeared to broach 
publicly subjects that Chinese 
leaders have considered ta- 
boo. In a speech Thursday in 
Washington, he predictably 
defended Beijing’s policy in 
Tibet, but added, “We believe 
that without democracy, there 
can be no modernization.” 

The statement was remark- 
able, Ms. Goldman and other 

1U\: n 

s, “Down 



it his 45-minute 
muffled yells of 

. “Although I am 71 years 
d, my ears are very sharp,” 
[r. Jiang said later, “and 
_ I could 
outside. I 

believed the only approach 

ev ^ n ™ an echo of assertions 
louder than them. tk«» .u* , #w> ■ 




that led to the 1979 impris- 
oning of China 1 * nwst famous 
dissident, Wei Jingsheng, 

Mr. Jiang-waj, in Los Ange- 
Ies on Sunday, where he was to 
roset with Chinese-American 


Does business support targets 
and timetables for limiting 
greenhouse gas emissions ? 

— VC* 


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Speed of Eastern Europe’s Prosperity Raises Driving Hazards 


By Jane Periez " 

Nr*- Yari Times Senior 

WARSAW - East Europeans are 
having a love affair with thecar, but 
they re not really enjoying it 

AH over Eastern Europe, but espe- 
cially in wealthier PolanS, peoplelre 
buying cars m an explosion ofownership 
that has come with better economic con- 
ditions and the growing acceptance of 

But paying for the car is the easy 
part J 

UnJighted, narrow rutted roads that 
served m Communist times as national 
thoroughfares are jammed with new 
care, from deluxe BMWs to modest Fi- 
ats, old cars, from boxy Skodas to poky 
Ladas, transport trailers and horsecarts 
and pedestrians wandering along the 
side. . 

These cavalcades of madness are 
made worse by drivers who fail to un- 
derstand the link between accidents and 
driving while drunk. 

Every country in Eastern Europe is 
seeing a dramatic increase in the number 
of accidents and deaths. 

From the curving mountain roads of 
Romania to the straight but narrow roads 
across the Hungarian plains, drivers 
speed and use poor judgment 

As if trying to make up for the time 

lost under the Communists, when own- 
ing a car was a haxd-tocome-by luxury, 
drivers view aggression behind the 
wheel as healthy, 

Poles joke about how their affinity for 
riding fast horses three centuries ago has 
been transferred to speeding at the wheel 

of a new car. 

Police escort cars fa* Hungarian 
politicians were involved in so many 
high-speed accidents last year that there 
were calls for driver-education courses 
for what was supposed to be the coun- 
try’s elite driving squad. 

In Poland, the number and severity of 
accidents have become a national, con- 
cern, although the authorities acknowl- 
edge that little is being done about it. 

Poland’s national traffic office esti- 
mates that for every 100 accidents last 
year, 11 people were killed, compared 
with 1 .5 .deaths for every 100 accidents 
in Britain. 

Of the Eastern European nations, the 
Czech Republic was best with 5.5 deaths 
for every 100 accidents, just ahead of 

The numbers also show the fatal con- 
nection between drinking and (hiving in 
Poland, where vodka is still common at 
business lunches and where a shot of 
plum brandy is easily had at a rural gas 
station before j umping into the car. 

Despite strict taws against driving 

while drunk, Poland, with a population 
only two- thirds as large as Britain’s, bad 
five times more accidents caused by 
drunken driving in 1995. 

Despite the steady increase in traffic, 
the number of police officers patrolling 
the roads remalns.the same. 

In schools, driver education is almost 
nonexistent Instead, primary-school 
students are taught basic road etiquette 
and how to ride a bicycle safely. 

Poland requires 20 boors of driving 
lessons at a commercial school to get a 
license, but the driving age was recently 
lowered to 17, from IS, and students at 
Warsaw’s elite high schools nag parents 
to give them informal lessons sooner. 

The driving examiners appear to have 
high standards — but standards that 
seem to have no correlation with the 
erratic style of Polish driving. 

A monthly magazine, Warsaw- in- 
sider, recently wanted foreigners taking 
the test for a Polish driver's license not to 
be surprised if they failed, even if they 
had driven for many years in their own 

“Examiners have been known to 
measure parking skills with a ruler and 
fail applicants who can’t reverse straight 
into a parking spot without braking,' ' the 
magazine said. 

But it is not always drivers who cause 
the accidents. . 

In the Romanian capital, Bucharest, 
one legacy of the Ceausescu regime is a 
lack of street lighting, and the city's 
pedestrians, long accustomed to streets 
without cars, often have no idea that they 
can not be seen. 

It can be so dark at night, said one 
Bucharest driver, Mihaela Paras - 
chivescu, that she hunches forward over 
her steering wheel to peer through her 
windshield to ensure she does not ran 
over someone. 

“Sometimes you just see legs cross- 
ing the street,” she said. 

“Most of the time, you’re just guess- 
ing that someone isn't moving out 

A Polish truck driver, Krzysztof Loz- 
inski, said peasants riding in horsecarts 
on the side of a road — with no reflectors 
— have so little idea of cars and distance 
that they often flick on a cigarette light- 
er, believing that is enough to warn 

A veteran driver who travels both 
main roads and back lanes, Mr. Lozinski 
tells hair-raising tales. 

“I’ve been witness to so many ac- 
cidents it doesn’r do anything to me,* * he 

Referring to body bags at accidents, 
he added, “I see black foil many dozens 
of times a year." 

“There was a time when an accident 

would make an impression on you," Mr. 
Lozinski said. "That was the time when 
you used your long lights and never 
turned them down. I still often pass bike 
riders without reflectors and people 
dressed in black with no flashlight.'’ 

In some places, there are the begin- 
nings of road improvements. 

In Hungary’, a highway now runs all 
the way from the Austrian border to the 
capital. Budapest. 

But many Hungarian drivers avoid the 
lost stretch of the highway, which 
opened last year, because they say the 
tolls are too high. 

In the Czech Republic, a four-lane 
highway runs from Prague to the Slov- 
akian border. 

Poland, the biggest country, boasts 
only one major highway, running about 
100 kilometers (about 60 miles! from 
Krakow- to Katowice. 

It was built as a piece of good old- 
fashioned pork, ordered by the Com- 
munist leader of the country in the 
1970s, Edward Gierek. who came from 
the region. 

In Poland, the police expect, the ac- 
cident rate will increase until 2002. 

By then, some of an S8 billion su- 
perhighway system that is planned will 
be in place. And by then, there may be 
more traffic officers and, who knows, 
more practical driver education. 

In War on Corruption and Waste, UN Confronts Wkll-Entrenched Foe 

By Barbara Crossette 

Wn- York Times Set-rice 

Three years after the United Nations 
established an inspector general’s office 
to combat waste and fraud, a clearer 
sense of the scope and style of corruption 
within the organization is be ginnin g to 
emerge. So is an understanding of why it 
is often difficult to detect and stop. 

Last week, Undersecretary-General 
Karl Paschke, the German foreign service 
officer who directs the anti-corruption 

office, released his third annual report. 

It reveals a pattern' of sloppy man- 
agement in which contracts are awarded 
and money disbursed without reference 
to the organization's financial regula- 
tions or accepted rules of accounting. It 
describes a world of petty criminality, 
where cash sometimes, seems to be sit- 
ting around for the taking. 

In this freewheeling atmosphere, di- 
verting money is relatively easy, the re- 
port d&honstrates. At a news conference 
Thursday , Mr. Paschke emphasized that a 
major priority for his office's investi- 

gations was procurement Contracts for 
catering, food purchases and air-charter 
services seem to be particularly prone to 
abuse, he said. Overseas, sweetheart deals 
involving friends and relatives abound. 

Individual acts of corruption within 
the UN system rarely involve large sums 
of money. But Mr. Paschke said that his 
office had recouped about $30 milli on 
for the United Nations over the last year, 
in addition to the unknown amount it had 
saved by discouraging crimes through 
increased inspections. 

In his work, Mr. Paschke faces serious 

and entrenched problems. UN offices 
around the world, beginning with the 
organization's European headquarters in 
Geneva, often seem to think that New 
York rules do not apply to them. 

There is almost never a paper trail in 
UN transactions. In many distant mis- 
sions, account books are kept carelessly 
if at all. Memos are not filed; instruc- 
tions are often unwritten. 

Furthermore, national governments 
put pressure on UN officials to hire or 
promote — but never dismiss — citizens 
of their countries who clamor for the 

For Hillary Clinton, 
A Visit to the Blairs 

Hillary Rodham Clinton 
strolling in the rose garden at 
Chequers, the official country 
residence of the British prime 
minister, Tony Blair. 

Mrs. Clinton came to the bouse 
north of London for a private 
weekend visit with Mr. Biair, 
his wife, Cherie, and their 

Mrs. Clinton arrived Friday 
night after a tour of Belfast that 
included a memorial lecture for 
Joyce McCartan, who ran a 
■center for Catholic and 
Protestant women to promote 
peace in Northern Ireland. 

She met Mrs.McCartan, who 
died last year, when she and 
President BUI Clinton visited 
Belfast in 1995. Mrs. Clinton 

was expected to return to 

'um* hbwiw wriani iYi« Washington on Sunday night. 

prestige of jobs in the organization, and 
then find ways to enhance their incomes 
by manipulating travel allowances or 
salary advances. 

UN employees — who request an- 
onymity because they fear they will suf- 
fer more professional harm than the cor- 
rupt officials they wont to expose — have 
provided numerous accounts of officials' 
being transfeired rather than dismissed 
after being caught breaking the rules. 

This happens frequently in cases of 
sexual harassment, nepotism and occa- 
sionally violence, according to these ac- 
counts. Whistle-blowers are neither en- 
couraged nor rewarded. 

Mr. Paschke 's office has begun pro- 
secuting officials in national courts 
when possible, to show that diplomatic 
immunity is no protection in serious 
cases. Deportments and branches 
audited by his investigators are taking 
action rather than ignoring warnings as 
they did in the past, the report says. 

Nevertheless, the 1997 report from 
Mr. Paschke ’s office to the General As- 
sembly contains ample evidence that the 
job of cleaning out the comers of the 
organization is a big one. Among the 
cases this year are: 

' In Angola: “Acceptance of delayed, 
defective rand snort supplies from a 
vendor resulted in excess payments of 
$288,000 and Josses of $980,000. There 
were also serious irregularities noted in 
die contracting of an aircraft. Internal 
control weaknesses resulted in extensive 
abuse of communications facilities.’’ In 
Haiti: "An audit of communications dis- 
closed that a Telephone technician had 
provided unauthorized international ac- 
cess to some staff members and, in some 
cases, inappropriately reduced tele- 
phone charges. 

In Palestinian refugee camps: "Funds 
were being siphoned off through the 
submission of false medical reimburse- 
ment c laims . ” 

Turkish Leader 
In Crete for Talks 

Prime Minister Mesut Yilmaz of 
Turkey arrived in Crete on Sunday, 
the fust visit by a Turkish leader to 
Greece since 1988. The visit came 
as tensions between the two nations 
have increased over Cyprus and ter- 
ritorial rights in the Aegean Sea. 

Mr. Yilmaz was greeted bv 
George Papandrcou, Greece's al- 
ternate foreign minister, at a rainy 
iraklion airport. Mr. Yilmaz is ex- 
pected to hold bilateral meetings 
with Prime Minister Costas Simitis 
on Monday during a summit meet- 
ing of Balkan nations. 

Greece has accused Turkey of 
violations of its airspace in recent 
weeks, coinciding with joint 
Greece-Cyprus war games, and 
both Athens and Ankara have ac- 
cused each other of aggressive be- 
havior. • i Reuters l 

Kohl Is Criticised 

BONN — The leader of Ger- 
many's Jewish population lent his 
weight Sunday to criticism of Chan- 
cellor Helmut Kohl for fueling con- 
cern about the number of Turkish 
immigrants in Germany. 

Mr. Kohl said last weekend in a 
speech to the youth wing of his 
Christian Democratic Union that 
the number of Turks in Germany 
would more than double to4 million 
or more if laws were changed to 
permit dual nationality. 

Ignatz Bubis. chairman of the 
Central Council of Jews, said such 
forecasts were irresponsible. 
"Whoever makes such warnings 
about an influx of millions of Turks 
must expect to be accused of spread- 
ing panic ami unnecessarily stoking 
up prejudices.” he wrote in the 
mass-circulation Bild am Sonntag 
newspaper. ( Reuters l 

Bonn Aide Rejects 
U.S. Complaint 

BONN — Foreign Minister 
Klaus Kinkel on Sunday rejected 
renewed criticism .from U.S. law- 
makers over Germany’s treatment 
of Scientology and said he would 
bring the matter up during his visit 
to Washington this week. 

A U.S. House of Representatives 
panel passed a nonbinding resolu- 
tion Friday accusing some German 
officials of fostering “an atmo- 
sphere of intolerance toward minor- 
ity religious groups. " (API 

MI-5 Ignored Alert 

LONDON — Britain's MI-5 in- 
telligence service ignored warning 
of a bombing in 1994 of the Israeli 
Embassy, a newspaper said Sunday 
after the government lifted a ban on 
reports of bungling by the agency. 

The Mail on Sunday, quoting a 
former MI-5 officer, said that the 
agent who received a written warn- 
ing of an imminent attack “buried" 
ii in a colleague's cupboard. (API 

BRITAIN: The Contradictions of Blair’s ‘Beacon’ for Europe 

a s/r 


i* T 



t : • 


.U h 

Continued from Page 1 

change of the Thatcher years, 
has moved into a distinct 
political, business and soci- 
ological culture — well apart 
and beyond the country's dis- 
connection from economic 
cycles in Europe and the 
breadth of the aoubt within 
pu blic opinion here about get-' 
-k* ting irreversibly involved 
™ with the euro, the future Euro- 
pean currency. 

The sincerity and real au- 
dacity of Mr. Blair's ambition 
overrides any derision. But 
the fact is that his beacon, 
“social justice and compet- 
itiveness,” according to An- 
thony Giddens, director of the 
London School of Econom- 
ics, involves trade-offs on job 
security and the welfare state 
already made in Margaret 
Thatcher’s Britain. Thai 
makes the process of persuad- 
ing ihe rest of Europe to 
change its model for society 
not one of inserting more so- 
cial justice into an open labor 
market, but of accepting the 
Conservative legacy of a 
capitalism comfortable with 

f risks that Mr. Blair has re- 
- jiggered as “compassion 
with a hard edge.” 

The. contradiction of Mr. 
Blair's serving essentially as 
an advocate ofThatchensm is 
massive. And it stands out 
against the background of a 
Europe in which the major 
reform proposition of die So- 
cialist government in France 
is reducing the workweek, 
and. the most striking social 
phenomenon in Germany is 
the growing polarization ot 
rich and poor. The shorter 
hours in France represent 
standard statist intervention, 
while growing income dis- 
parities, now largely brushed 
off as a fact of lire m Britain, 
will be an essential aspect in 
the German Social Demo- 
crats’ atiempt to oust Mr. 

Kohl. 10 months from now. 

From Europe's point ot 
view, Mr. Blair may choose to 
point to Britain’s 6.S percent 

than France’s or Germany’s, 
although established by his 
predecessors. But before talk- 
ing of a British model, other 
countries will be checking on 
(he Labour . government's 
progress in reducing the 23 
percent poverty level in the 
United Kingdom, the worst 
score in Europe outside of 
Greece and PortugaL 

Denis MacShane, a Labour 
member of Par liamen t active 
in European affairs, said: 
“You’re not a beacon to the 
guys who have a job in 
Europe. But you may be to the 
18 million or so who don’t 
What the UJK. can be is the 
agent or purveyor of a risk- 
oriented mentality. The reflex 
is there — eveiy Frenchman 
who opens a restaurant is a 
risk-taker. The British contri- 
bution will not be to be the new 
philosophers of Europe, bur to 
create facts on the ground.” 

At Demos, the London 
fhink -tank whose co-director, 
Geoff Mulgan, is now on sab- 
batical as a policy adviser to 
the prime minister, the view is 
that, contrary to , what the 
French government' sup- 
poses, working hours cannot 
bereduoed without cutting in- 
comes. and that Mr. Blair can 
(a if a this refutation of old- 
fashioned socialism into 
Europe, functioning as a 
“source of exhortation and 

“If Blair gets his modeL 
said Ian Christie, .Demos s 
deputy director, * ’then you gel 
a kind of Thatcherism with a 
human face. But there’s a 
sat deal of selling to be done 
j re as far as Europe goes.” 
In practice, Mr. Blair s 
model of competitiveness 
plus social justice wiU not 
mean much more than bring- 
ing a minimum wage to the 
United Kingdom while steer- 
ing clear of concentrating at- 
tention on the growing ex- 
tremes of Europe’s rich and 

Downing Street, no tar- 
get for poverty reduction is at 

hand, and at Demos, while 
? there is acknowledgment that 
the “morality, of wealth” 
needs discussion, no prospect 
for legislation or steering 
opinion cm the subject by the 
government is foreseen. 

It is at thus point that the 
language of ambition and 
practicality collide. 

Mr. Blair, according to 
Alas lair Campbell, wants ‘ ‘to 
focus Europe on the issues 
that really matter.” But when 
he is asked what the govern- 
ment would want said about 
its accomplishments on Jnly 1 
next year at the end of its six 
months holding the European 
Union's rotating presidency, 
Mr. Campbell becomes ex- 
tremely modest: “Hopefully, 
they will say that the pres- 
idency was orderly. We 
would hope that by the end of 
the term we will be seen as 
having been constructive on 
EMU in away that allows the 
project to be a success.” 

With' the decision made to 
avoid commitment to Euro- 
pean monetary union until a 
safer political juncture at 
home, much of the grand lan- 
guage in relation to leading 
Europe forward shrivels. The 
beacon flickers. At Downing 
Street, under die circum- 
stances, there is the sense that 
a little humbleness is now in 

An irony goes along with 
this realization. It is that Mr. 
Blair, having broken the ta- 
boos of 50 years of social 
democracy by pocketing the 
advances of Mrs. Thatcher's 
counterrevolution, now must 
modulate this message to the 
rest of the world. The reason 
is plain: Whatever the polls 
say about his popularity, Mr. 
Blair does not yet feel po- 
litically confident enough ar 
home to challenge the sur- 
viving taboos that have al- 
ways blocked Britain’s defin- 
itive entry into Europe. 


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Request for Expression of Interest 
for Design-Build Contracts 

The Kowioon-Canton Railway Corporation (KCRC) invites expressions of Interest from p re-qualifying contractors for the following 
design-build packages for Phase 1 of West Rail, a 30.5km. double-tracked, electrified railway system providing passenger 
services to Hong Kong's Northwest New Territories with a maintenance depot and 9 stations. 

Kwai Tsing Tunnels 

This contract encompasses the design and construction of the tunnels (approximately 3.600m In length) from Ching 
Cheung Road in the south to Wing Shun .Street in the north. The railway will proceed northwards from Ching Cheung 
Road through rock tunnels (approximately 1,700m) then transition to a cut-and-cover tunnel (approximately 680m) to 
pass below Kwai Chung Road and follow Kwai Fuk Road to Hing Fong Road. From there the alignment reverts to rock 
tunnels (approximately 1,100m) and finally to a cut-and-cover tunnel (approximately 120m). The work is planned to 
commence in late 1 998 with construction to be completed by early 2002. 

Tai Lam Tunnel 

This contract encompasses the design and construction of the tunnel (approximately 5,500m in length) beneath 
the Tai Lam Country Park. The railway will proceed from south of Castle Peak Road In Tsuen Wan to the northern portal 
in the Kam Tin Valley. The contract will include the development of the tunnel's southern and northern portals and a 
short section of line on an embankment to an interface with the West Rail Depot. The work is planned to commence in 
late 1998 with construction to be completed by late 2002. 

Detailed descriptions of the scope of work activities and programme requirements will be included in the 
Qualification Questionnaire. 

Requests for a Qualification Questionnaire should be made in English on company letterhead by facsimile to the 
Kowloon-Canton Railway Corporation, Attention: Procurement Manager at (652) 2601-2671 . Requests for Qualification 
Documents received by the Corporation after 29 November 1997 may be too late tor consideration: 

KCRC will, at its sole discretion, evaluate responses to the Qualification Questionnaire. The tender documents will require 
parent company guarantees in respect of each entity. Tenderers will be required to provide a tender bond 
the value of whjch will be determined at a later date. 

No communications in response to this advertisement will be accepted by KCRC except by facsimile at the above 
noted facsimile number. 

This procurement activity is covered by the World Trade Organisation's Government Procurement Agreement. 

Interested firms are advised that the construction of Phase I of West Rail will be subject 
to the approval of the Hong Kong Special Administrative Region Government around 
September 1998. 

Additional information is also available on the Internet at the following address: 




. re. ' • • : rt?. 






The Woodward Case 

The murder case of the British 
nanny Louise Woodward first captured 
public attention because it connected 
with all working parents' fear that their 
children will be harmed when the par- 
ents are at work. Then on Thursday it 
captured even wider attention because 
of the possibility that the prosecution 
may not have met its burden of proving 
murder beyond a reasonable doubt, 
and because of a sense that Ms. Wood- 
ward’s lawyers may have refused a 
plea bargain that would have avoided 
a life sentence. 

It is a complex case with anguish, on 
every side. The grief of the parents, 
Deborah and Sunil Eappen, whose Si- 
month-old son,- Matthew, died of head 
injuries in February, is heartbreaking. 
For Ms. Woodward, a 19-year-old au 
pair who came to America on a cultural 
exchange program and earned room 
and board and pocket money by taking 
care of the Eappens’ baby and their 2- 
y ear-old son, a yearlong trip to see 
America has turned into a nightmare. 

Prosecutors say with absolure cer- 
tainty that Ms. Woodward willfully 
inflicted the injuries that killed Mat- 
thew. But their certainty does not 
amount to proof. 

. The defense team produced expert 
testimony that the injuries that killed 
Matthew Eappen occurred several 
weeks before the date specified in the 
charge against Ms. Woodward. Many 
courtroom analysts believed that Barry 
S check, a defense lawyer, had created 
reasonable doubt about the prosecu- 
tion's medical evidence, and expected 
a hung jury or acquittaL But the jury 
apparently felt that whatever the de- 
tails, Ms. Woodward was responsible 
for those injuries. 

There was also a question of intent, 
which goes to whether second-degree 
murder, with a life sentence, was the 
correct finding. Even if the defendant 
inflicted the injuries, she did not ne- 
cessarily intend to kill the baby. 

Second-degree murder under Mas- 
sachusetts law is an intentional killing 
done with malice. The defense lawyers 
seemed to bet that the jury -would not 

find the necessary intent. They per- 
suaded the trial judge, Hiller Zobel, 
over the prosecution's objections, not 
to allow the jury to consider the lesser 
charge of manslaughter. 

This Tuesday, Judge Zobel will hear 
defense motions to overturn the ver- 
dict, order a new trial or reduce the 
charge, perhaps to manslaughter. Such 
arguments are standard, but in court on 
. Friday the judge’s manner suggested 
that he regarded them as a weighty part 
of this case. 

That is appropriate, for the standard 
of reasonable doubt has immense im- 
portance where the punishment is a life 
sentence, and this may be (me of those 
rare cases in which the testimony de- 
mands that the judge review the joy’s 
verdict with searching intensity. The 
court's duty here is not lockstep ad- 
herence to the sentencing guidelines. 
The goal is justice. 

Whatever the outcome, it is clear 
that America's loosely monitored an 
pair system is also in line for searching 
inquiry. Teenagers like Ms. Wood- 
ward are rarely prepared to handle the 
- stresses of full-time care of infan ts. 

Au pairs, who are allowed into the 
country on special visas, are typically 
required to work 45 hours a week 
caring for two or more children in a 
home. The U.S. Information 
which oversees the program, has j 
the rules more stringent by requiring 
that au pairs who care for children 
under 2 have at least 200 hours of 
child-care experience. But calls to re- 
quire that au pairs be at least 21 have 
'met with resistance from au pair re- 
cruitment agencies. 

The fundamental problem is that 
the families hiring au pairs are looking 
for affordable, reliable child care, 
while the young women who come 
from abroad to fill the slots are look- 
ing for adventure and cultural enrich- 
ment. Reconciling those two desires 
is difficult in the best of circum- 
stances, impossible in many. The 
Woodward case shows how that clash 
can destroy lives. 


Elders to the Rescue 

As Congress winds down, die cause 
of campaign finance reform is battered 
but still alive. 

After preaching a funeral oration 
that convinced some spin-friendly 
commentators. Senator Trent Lott was 
forced to guarantee a vote next spring 
on the McCain-Feingold bill. House 
Speaker Newt Gingrich agreed on Fri- 
day to allow a similar vote. 

The day's other big event was Sen- 
ator Fred Thompson's announcement 
.that his investigative committee will 
suspend its hearings. He was frustrated 
by his own overreaching at times, but 
even more by fleeing witnesses, by 
White House foot-dragging and by 
a coalition of special- interest politi- 
cians led by Mr. Lon and the Demo- 
crats' John Glenn. 

Nonetheless, Mr. Thompson forced 
Anomey General Janet Reno and a 
snoozing FBI to quit ignoring any and 
all indications of corruption in the 
1996 campaign. Ms. Reno may su'U try 
to evade her obligation to appoint an 
independent counsel, but thanks 
mainly to Mr. Thompson any such 
evasion will stir cyclonic outrage. 

Moreover, the committee has left a 
documentary record — the videotapes 
of White House coffees, the door- 
opening memos born the Democratic 
National Committee, amnesiac fund- 
raisers, contributors bragging about 
the purchase of access — that adds up 
to an inescapable mosaic of a gov- 
ernment for rent. 

The impact of that public record can 
be judged by the spontaneous coalition 
of conscience that has emerged among 
the elders of both parties. 

Former President Gerald Ford, for 
instance, said recently that a ban on 
soft money was needed to "restore the 
confidence of our citizens in their fed- 
eral government.*' He and two like- 
minded former presidents, Jimmy 
Carter and George Bush, demonstrate 
that the most passionate advocates of 
this reform are those who know the 
system best. 

Although Mr. Lott, the Senate ma- 
jority leader, and Mr. Gingrich are 
Capitol Hill's most implacable oppo- 
nents of a cleaner system, their party's 
most respected congressional veterans 
are aligned with the former presidents. 
Supporting a soft money ban are two 
former Semite majority leaders. Bob 

Dole and Howard Baker, a former 
House Republican leader. Bob Michel, 
and a former Republican national 
chairman. Bill Brock. 

Mr. Lott’s power over his party 
clearly does not extend to its Senate 
alumni. Among the advocates of 
change are Alan Simpson. Nancy 
Kassebaum, Mr. Baker and six other 
former senators. 

This appeal from the elders is 
timely. Last week the McCain-Fein- 
gold bill escaped another Lott plot to 
kill it. Fearing a public relations dis- 
aster, Mr. Lott scheduled the one thing 
that defenders of the status quo most 
detest, an unencumbered Senate vote 
on reform. 

Reformers now have an opportunity 
to offer the McCain-Feingold legis- 
lation in the form of au amendment chat 
cannot be altered before an up-or- 
down vote no later than March 6. The 
supporters can probably get more than 
50 votes for the bill, although getting 
the 60 needed to make it filibuster- 
proof will be hard. 

In the weeks ahead. Mr. Lott's team 
will repeal their canard that unlimited 
party contributions are a matter of free 
speech. In fact, corporations have been 
barred from contributing to candidates 
since 1907, and unions have been 
barred since 1947. Individual limits 
on donations were enacted in 1974. 
The McCain-Feingold bill is not im- 
posing unprecedented new restrictions 
on politics. It simply extends the logic 
of laws chat Americans have support- 
ed for decades. 

The weekend of Halloween has 
brought the fearsome spectacle of 
President Bill Clinton and the Repub- 
licans reaching new lows in campaign 
fund-raising. Believing that they are 
immune to public revulsion even after 
a year of disclosures about re-election 
abuses, Mr. Clinton has joined Vice 
President A1 Gore and other Demo- 
crats in raising nearly S3 million at a 
luxurious Florida beach resort. Not to 
be outdone. Republicans expect to 
scare up a staggering $6 million this 
week in two days of fund-raising 
events in Washington. 

There will be, in other words, a lot 
of money at stake when Senator Lott 
rallies the old order for another stand 
next March. 


4 V INTEBftmUNU #4 

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S u <i7wanata 

sfsa^l RCS Namim No. 61117 

*61997, Intemtlmd Heroid Tribune. A0 rights restmi ISSN. U294-3Q52. 

Turkey’s American 

r ASHINGTON— Friend and ally 
to Turkey for half a century, the 

Ankara to keep the Turks cooperative. 

The Clinton administration has cor- 
rectly identified Turkey as the new 
"front-line state” in global conflict. It 
is the major crossroads of the religions, 
social and nationalist fractures of new 
era politics, and gateway to the oil 
fields of Central Asia, Iraq and, the 
Gulf. Turkey counts. 

But Washington is as weak at rem- 
edy as it is strong on diagnosis. In no 
other region of the world is the im- 
balance greater between a region’s de- 
clared importance to U.S. interests and 
active, sustained U.S. involvement. 

Instead the Clinton administration 
offers diplomatic opium to the Turks, 
suggesting that the answer to their 
problems is quick membership in the 
European Union, and then presses the 
Europeans to admit the Turks and over- 
look a few flaws here and there. 

There is nothing inherently wrong 
with the U.S. goal of Turkish mem- 
bership in the 15-meniber club of 
Europe's most affluent nations. A Tur- 
key that fits into Europe economically 
and socially would be a more stable 

By Jim Hoagland 

nation, as U.S. diplomats argue at in- 
ternational conferences and in increas- 
ingly acrimonious private exchanges 
with their European counterparts. 

But Washington turns a blind eye to 
the self-destructive, addictive behavior 
of the Turkish military that makes EU 
membership in the near future a pipe 
dream. Worse, Washington denies its 
own responsibility for conditions that 
feed that behavior. 

The Turkish military, which dom- 
inates the weak coalition government 
in Ankara, is not interested in har- 
monizing value added taxes, a per- 
ennial hot topic in the European Union, 
The Turkish military expends its en- 
ergies persecuting dissidents at home 

— a new wave of arrests of human 
rights activists was launched last week 

— and phuging deeper into a nasty 
civil war in neighboring northern Iraq. 

For several weeks Turkish war- 
planes have been strafing Kurdish 
guerrillas in Iraq on a near daily basis. 
Turkey has moved U.S.-supplied ar- 
tillery into Iraq to fire on one Kurdish 
faction, and is dropping napalm on 
them from U.S.-supplied warplanes, 
Kurdish spokesmen say. 

Turkey's involvement in the Kurd- 
ish civil war demolishes the notion that 
this is a distant, small conflict with no 
consequence for the United States. The 
WhiteHouse pretends otherwise in' its 
misleading reports to Congress and in 
anesthetizing public statements play- 
ing up the “success” of U.S. policy in 
northern Iraq and Turkey. 

The confusion of American purposes 
is made clear by this officially unac- 
knowledged, bizarre reality: The main 
target of Turkey 's current attacks inside 
Iraq is the guerrillas of the Patriotic 
Union of Kurdistan, an organization 
that receives at least $500,000 a month 
in covert support from the CIA. 

Official American money intended 
to finance peacekeeping has also been 
flowing to the PUk’s ICurdish oppo- 
nents, led by Massoud Barzani, who 
has allied himself with the Baghdad 
regime of Saddam Hussein. 

The Turks are now weary of the 
vacuum that die United Stares has let 
develop in northern Iraq, a U.S. pro- 
tectorate after the Gulf War. They are 
alsn understandably upset . about the 
heavy financial sacrifices that the long 
U.S.-led economic blockade on Sad- 
dam has imposed on them. 

Frustrated and confused about U.S. 
goals, the Turks follow policies that 

will result in both Kurdish groups re- 
conciling with Saddam, who will re- 
sume operational control of the north. 

On top of this disastrous scenario, 
the brutal Turkish campaign pushes 
further and further away the day when 
Ankara would be accepted by the Euro- . 
pean Union. U.S. abdication in north- 
ern Iraq, and its self-imposed blindness 
to the regional consequences of that 
abdication, undermine its proposed 
solution for Turkey's problems. 1 

This large, developing Muslim nation 
already faces nearly insurmountable 
hurdles in gaining EU membership, Ger- 
many, wit£ 2 million Turkish residents 
and 500,000 Kurds on its soil, is terrified 
of new waves of immigration. The Euro- 
peans are also keenly aware that they are 
being asked by the Americans to provide 
more financial support for Turkey' so 
that U.S. help can decline. 

Washington needs to acknowledge 
the damage its vacillating policy on Iraq 
has caused Turkey and offer financial 
compensation to Ankara. The deal must 
include Turkey’s ending its human 
rights abuses at home and the border 
war on the Kurds, as pan of a self-help 
program to get ready to join Europe. 

Friends challenge self-delusion. 
They do nor feed iL 

The Washington Pcsl 

Expect Recovery in Stunned Southeast Asia, but Not Quickly 

H ONG KONG — There is a 
good chance that the $30 
billion-plus IMF-led support 
package for Indonesia will lead 
Southeast Asia toward currency 
and stock market stability. The 
size of the bailout for the re- 
gion’s largest economy, which 
has U.S. as well as Asian back- 
ing, should be a turning poinL 
Bat do not expect any sharp 
regional recovery. At best, the 
groundwork has been laid for a 
prolonged period of Southeast 
Asian rehabilitation. 

Hong Kong has yet to com- 
plete its catharsis. Many here 
are still in denial of the severity 
of the pain that will come from 
the abrupt end of years of asset 
inflati on and easy money. 
Meanwhile, international banks 
have yet to own up to the huge 
losses they are sure to suffer all 
over East Asia. 

The magnitude of the sums 
involved in the Indonesian as 
well as Thai rescues suggests 

By Philip Bo wring 

that it is going to take a- long 
time to work out the debts. The 
corning era of slow growth will 
last ar least three years. Old 
investments will have to be ser- 
viced, while new ones are likely 
to be scarce for a while. 

Quite how long recovery 
takes will partly depend on the 
extent to which the crisis has 
cansed the sort of capital flight 
that Latin America and the Phil- 
ippines saw in die 1980s. Have 
big groups paxked cash offshore 
and left their debts with banks 
and companies at home? Will 
they bring their cash back soon, 
or wait till they see whether the 
coming economic downturn 
leads to political unrest? 

Another factor in rehabilita- 
tion will be whether well-run 
companies will be forced to 
help rescue those ill-run by 
political cronies. 

The rescue and reorganiza- 

tion of Indonesian and Thai 
banks should now be assured, to 
the relief of local depositors. 
But the package will do nothing 
for the foreign hanks which 
have loaned offshore to Indone- 
sian business. Indeed, IMF su- 
pervision should lead to tougher 
loan recovery efforts onshore. 
Western stock markets may 
have yet to appreciate the losses 
that some or their big banking 
names will take in Asia. 

In Hong Kong hubris still 
lives. In shows of bravado, 
companies have taken to 
massive baying of their own 
shares, which looks “patriotic” 
but is a gamble. High-profile 
bnyers include Cathay Pacific 
Airways, even thoughits profits 
are plummeting, Sino Land, 
already the most leveraged of 
die major property companies, 
and Hang Seng Ban 

It is 

s eng Bank, 
not surprising 


Moody's has just downgraded 
Hong Kong banks’ ratings if 
they respond to an asset price fall 
by shrinkin g their capital base. 

Meanwhile, the Hong Kong 
Monetary Authority has, in the 
view of many economists, un- 
dermined the theoretical basis 
for its pegged exchange rate sys- 
tem, which is supposed to en- 
sure toe survival of the peg to the 
currently almighty U.S. dollar. 

The authority’s interventions 
have suggested that it wants to 
manipulate interest rates as well 
as keep the currency stable. It 
may be caught between the de- 
mands of the peg and those of the 

politically powerful property de- 
velopers who cannot abide high 
interest rates for very long. 

China has been keeping a dis- 
creet silence, but its longer-term 
response to regional develop- 
ments will be crucial. The yuan 
is stable. Notbeing freely traded, 
it is immune from attack. 

C hina ’s exports have been 

Leaders Would Do Better to Pay Attention to Demonstrators 

dents hate demonstra- 
tions. The notoriously touchy 
Lyndon Johnson was outraged 
by them. Richard Nixon was 
unhinged by them. The irony is 
that if either of them had 
listened to the Vietnam War 
protesters they might have 
saved their presidencies. 

People carrying posters often 
put toe "real” in reaJpolitik. 

Last week’s demonstration 
against Chinese President Jiang 
Zemin was puny when com- 
pared with the hosts of Viet- 
nam. More than a milli on 
people joined a march on the 
Pentagon in 1967. 

On Wednesday some 2.000 
people showed up in Lafayette 
Park to protest China's human 
rights record. But this turnout 
was enough to cloud toe day of 
toe old protest organizer now 

By Mary McGrory 

residing in the White House. It 
was a spirited affair thai fea- 
tured many of Bill Clinton'S 
people — labor, Hollywood, 
Kennedys. About 98 percent of 
the speakers were Democrats. 

The administration’s spin- 
ners, starting with Madeleine 
Albright, trial to put toe China 
question into a rigid either/or 
equation. It would be “irre- 
sponsible," they said, not to 
tig age with a country of the 
size and importance of China. 

The protesters were not say- 
ing they wanted to go back to 
the pre-Nixon era of pretending 
that China did nor exist Said 
Sandra Cuneo of the Robert F. 
Kennedy Memorial Center for 
Human Rights, as she picked up 
litter “ft’s the toms of engage- 
ment that worry us." 

Mr. Clinton, at age 50, is still 
subject to fads and crushes. He 
discovered Asia and swallowed 
it whole. He is hell-bent for 
trade and sees unlimited oppor- 
tunities in Beijing. 

In toe case of NAFTA, he 
was so insistent on extending 
.trade to Mexico that he made 
compromises on labor, civil 
rights and the environment that 
bedevil his latest attempts at 
"fast track” trade negotiations. 
On China, said one of his 
former advance men who was 
helping out in Lafayette Park, 
‘ 'he inherited a mess from Bush 
— and he bought into it.” 

Americans who remember 
toe interventionist years when 
we expressed our displeasure 
with recalcitrant coon tries are 
puzzled by our passive response 

Beijing’s Fear of Dissent Is Telling 

Johnny Chong and Char- 
lie Trie, Jiang Zemin knew ex- 
actly how to gain access to the 
Clinton White House: lay toe 
money on toe table. 

The entry fee was a $3 billion 
order for 50 aircraft to be built 
by Boeing, a mismanaged U.S. 
company rhaf cannot turn a de- 
cent profit on the orders already 
on its books. The big money — 
$60 billion to bntid nuclear 
power plants — goes to West- 
mghouse and other U.S. firms, 
which will make American nu- 
clear policy dependent on toe 
goodwill of Beijing. 

A mere bump on the road to 
toe summit was China's record 
of mendacity about transferring 
nuclear and missile technology 
to Pakistan and Iran. The Amer- 
ican president, bonding to the 
man whose Great Wall he needs 
for a photo-op before next 
November’s elections, extracted 
“clear assurances" that China 
will not do what it insists it never 
did but promises to stop. 

President Jiang comes away 
from his state visit as the man 
who triumphantly closed the 
Tiananmen chapter in relations 
with the barbarian superpower, 
while the dissidents W« Jing- 
sheng and Wane Dan still lan- 
guish in their cells. 

Mr. Jiang can also boast to 
China’s, nervous neighbors in 

Japan and Southeast Asia 

including democracies that look 
to America to counter Chinese 
hegemony — that the prospect 
of trade is toe key to influencing 
American policy, and that no 
other potential market can com- 
pete with 1.2 billion Chinese. 

Bill Clinton comes away in 
toe pose of the geopolitical real- 

By William S afire 

ist He would have us believe 
that while candidates can cam- 
paign against 1 ‘coddling dictat- 
ors" (as he did and as Dick 
Gephardt is now doing), sitting 
presidents most park all ideals 
and accommodate despotism. 
He suggests that the only al- 
ternative to his pragmatic dec- 
laration of normality would be 
"to create a new Cold War." 

That’s a straw-man argu- 
ment, lacking subtlety, a quality 
that Chinese diplomats culti- 
vate exquisitely. Washington 
should adopt a policy of dis- 
ciplined engagement, intric- 
ately verifiable, sometimes sav- 
ing face through temporary 
secrecy but based on reciprocity 
and coolly penalizing in- 
transigence or oetrayaL 

Cutting through the diplo- 
matese: How do you get Res- 
ident Jiang, so hung up on the 
appearance of stability, to 
spring Mr. Wei and Mr. Wang? 

Mr. Clinton knows the ap- 
proach; he touched on it, too 
gingerly, in last week's joint 
press conference. “The societ- 
ies of the 21st century that will 
do best will be those that are 
drawing their stability from 
their differences; that out of this 
whole harmony of different 
views there is a coherence of 
loyalty to the nation.” 

He should punch that up into 
words that wound pride: Only a 
government that is strong and 
stable can tolerate dissent A 
weak regime betrays its fear by 
jailing its opposition. Every day 
that Mr. Wei and Mr. Wang 
spend b ehind bars is Mr. Jiang’s 
admission that Beijing is afraid 

of being overthrown by toe 
people. Repression is weakness. 

This argument hits where it 
hurts, in the soft stomach of in- 
stability. And, as Henry Kissing- 
er used to say, "it has the added 
advantage of being true.” 

The American focus on hu- 
man rights everywhere should 
be no threat to order in China if 
that country is stable. Why do 
Beijing’s leaders want to advert- 
ise to the world their honor of 
what a couple of longtime jail- 
birds, with no following and no 
army, might complain about? 

Evidently Mr. Clinton hag 
not been able to get this point 
across. Mr. Jiang still thinks the 
release of a couple of tortured 
but unbroken human beii 

would be a concession to 

West, not a display of govern- 
mental confidence. 

Norway’s craven Nobel 
committee has not helped. By 
again denying toepeace prize to 
China’s heroic Wei, and be- 
stowing it instead on America’s 
land mine activist, the commit- 
tee delightedly embarrassed the 
U.S. president and flinched be- 
fore die glare of China’s lead- 
ers. (Send 37,000 Norwe gians 
to Korea with no land mines to 
slow an attack from the North.) 

When Beijing adepts free 
market rules, and not before, the 
United States should support 
entry to toe World Trade Or- 
ganization. When China , over 
tune, demonstrates adherence to 
nuclear-spread rules, the United 
States should proceed in stages 
on power plants. When Mr. Jiang 
feels secure enough to permit his 
people to speak and worship 
freely, America will be dealing 
with a genuine superpower. 

The New York Times. 

to China’s in-your-face disre- 
gard of human rights. In the old 
days, we bombed, invaded and 
subverted countries that refused 
to get with our program. 

Instead we now are selling 
nuclear reactors to Beijing and 
inventing a history of * ‘cooper- 
ation” on nonproliferation. 

Why? The short, crass an- 
swer is money. U.S. firms drool 
over prospects of trade with 
more man a billion buyers. They 
are putting factories in China 
that will compete with their own 
back home — just in the hopes 
of more Chinese deals. 

The most baffling aspect may 
be the exertions ana contortions 
that are occurring against toe 
reality of a $40 billion trade def- 
icit It will go higher with Christ- 
mas toys. Slave labor is chap. 

Mr. Johnson and Mr. Nixon 
dismissed street smarts as mob 
rule. Mr. Johnson had many 
chances before toe ultimate Vi- 
etnam protest — Eugene Mc- 
Carthy s 1968 - presidential 
campaign — to make for the 
exits in Southeast Asia. Mi- 
chael Beschloss’s new book 
"Taking Charge,” a compila- 
tion of LBJ’s White House 
tapes, tells ns that Mr. Johnson 
feared condemnation from his 
arch enemy, Bobby Kennedy. 

Mr. Nixon promised that he 
would end the war, but 20,000 
more Americans died while he 
weighed how withdrawal would 
affect his re-election chances. 
His accomplice. Hairy Kissing- 
er, defended Mr. Nixon's Vi- 
etnam policy by telling gullible 
senators and journalists. “If you 
could see the cables ... ’’ 

1897: Tammany Wins 

h: lH‘"‘ 

growing fast, and it is sitting on ; 
huge foreign reserves. Bor with 
its economy slowing, prices 
falling and state-owned enter- 
prise losses continuing to 
mount, the last thing China 
needs is a collapse of export 
growth as Southeast Asia grabs 
back the market share it lost 
after China's huge January 
1995 devaluation. 

If China were to let the yuan 
slide, it would signal continu- 
ation of the competitive devalu- 
ation that has been one cause of 
Asia’s current woes. It would 
also add to the threats to Hong 
Kong’s currency. 

U.S. pressure on trade issues, 
as well as the Hong Kong ques- \. 
tion, will probably ensure that 
China opts for a strong yuan for -> 
the time being. But six months 
hence its domestic needs could 
become decisive. 

One storm has abated, hut 
dark clouds still threaten. 

International Henrid Tribune 

Well, eventually, we did see 
them, and they read toe same 
famous jargon we heard in toe 
speeches from the throne. 

The current example of toe 
efficacy of taking' to the streets 
comes from Italy, where Prime 
Minister Romano Prodi was re- 
stored by the timely interven- 
tion of common people. 

Mr. Prodi ’s coalition partner. 
Fausto Bertinotti, a reconstit- 
uted Communist, withdrew his 
support for a proposal to bring - J 
the country into compliance - 
with European Union fiscal 
standards by cutting Italy's ex- 
travagant pension system. Mr. 
Bertinotti had heard Italians 
moaning and groaning about 
austerity and taxes, but failed to 
understand the underlying com- 
mitment to Europe. 

He went to a peace rally near 
Perugia, where he was booed 
and hissed off toe scene. He 
scurried back to Rome to make 
his peace with Mr. Prodi. Dem- 
onstrators had spared their 
country from toe opprobrium of 
toe fall of another government »*'• 
(56 in 56 years) when Mr. Prodi r 
took up the reins again. 

Large groups are no more 
i nfal l i ble than small groups, but 
they often have something to 
say. Bianca Jagger, a veteran 
activist, even thinks the pres- 
ident was listening — or at least 
someone at the white House 
was listening for him. 

"At his press conference 
with Jiang, he talked about a 
‘ uni versaL human rights stan- 
dard,’ which is what we were 
talking about,” she said. 

The Washington Post. 

NEW YORK — The returns 
show that over half a million 
votes have been cast. The Tam- 
many leaders claimed that Judge 
Van Wyck was elected Enor- 
mous excitement followed this 
announcement, bands playing, 
tin trumpets braying, and the 
cheering being deafening. 
Crowds surrounded bulletin sta- 
tions, being largely composed of 
typical New York roughs shout- 
ing themselves hoarse over 
Judge Van Wyck’s victory. 

1922: Berlin Blamed 

NEWARK — Mr. Otto H. 
Kahn {a partner in Kuhn, Loeb 
& Co. and president of toe Met- 
ropolitan Opera Company of 
New York City] blamed Berlin 
for keeping Europe in a turmoil. 

* ‘Until Germany, situated in toe 
centre of Europe, can formulate 
some definite blan of action for 
the future and become a work- 

ing member of the family of 
European nations, Europe can- 
not rest in peace and normalcy t 
and France cannot be paid. " he ~ ” 
said "The war debts were 
money advanced by the United 
States incident to defraying the 
cost of the war ... Europe 
should not be embarrassed in 
the collection of these taxes." 

1947: Czech Problem 

PRAGUE — The Soviet Union 
has increased original demands 
on Czechoslovaks 's industrial 

auPu 1 t0 P 0 ^ now where 
fulfillment would mean com- 
plete Russian absorption of all 
Czechoslovakia’s heavy indus- 
tnal export potential. Because 
of these demands, Czechoslo- 
vakia has been seeking foreign 
credits, especially in toe United 
States, in order to fill Russian 
orders and maintain her. export 
trade with “hard currency" 
^eas such as Switzerland, 
Sweden and Belgium. 






On Inadvertence , Bagmen and Getting Mad 

By William S afire 

A bagman, in underworld parlance, 
is “one who carries the boodle,. tx 

XT T'ASHlNfrmM r ^ . mMe y. from the benefi c iary of a cor- 
W ^ grafter." Fist spotted 

While nouse senior spin- 
meisier, nsed his favorite modifier 
again the other day: “We understand 

in 1928, bagman 

agman was accurately 
defined as a New Yoijc criminal term 

by London's Sunday Times in 1952: 

.l. ■ -wmmumiuu «.■» ujuuuu s ouuuay 

P* °,^ ce : • ■ * imve “A bagman is one who administers the 

innfhvrt**th, ' n. is one wno aomimsiers me 

10 pbotoco K? collect® of graft money from either 
77 ,- ni ,^ els ‘ . die underworld or the business world 

House is £. and its subsequent distribution anxmg 

. .■ advene ni. The root is the politicians and civil servants." . 

- ■ 


• '~Y. 

V K <> 

.[_■ • Icl, 

rt,. •• 

Though die carrier of the sack of 
cash from payoff er to payee is not as 
seriously culpable as his clients, the 

The synonym of inad- 
vertent is ‘accidental,’ fant 
no government likes to 
use that word too often. 

l^tin vertere, ‘to turn"; to adven is 
“to turn to,” and an advertisement is a 
message to turn one’s attention to. An 
inadvertence, contrariwise, is the re- 
sult of a tuming-away of attention lead- 
ing to what is invariably described as 
‘ 'an honest mistake.” 

. Th e synonym of inadvertent is “ac- 
cidental, ' but no government li k es to 
use that word too often; the synonym of 
the noun inadvertence is the dread 
‘ 'oversight," a Janus word that means 
both “an innocent error" and “a 
bunch 6f slavering congressmen on a 
witch hunt” (A favorite verb of mean- 
spirited pundits is animadvert, adding 
.a snarling animus to the turning-to, 
meaning “to note with a sneer.”) 

The campaign finance scandal has at 
last turned up one of the great words in 

Ae lexicon of graft Representative Dan in a large bag, has no coarse of legal 
Burton, chairman of the House Com- action for biting so malted; even so, it is 
mmee on Government Reform and safer to refer to her as a street person.) 
Oversight, fixed his sights on a “ratber Finally, to a word carefully chosen 
mysterious figure who had ties to Charlie by the attorney general, Janet Reno. 
Trie, the Lippo Group, and John Huang. After she had been humiliated by being 
He was apparently the bagman." among die last to learn of the existence 

word, in both masc uline and feminine 
form, is libelons; when the Harlem 
Congressman Adam Clayton Powell 
Labeled as a bagwoman a person he 
thought was a courier in the policy 
racket, she sued for libel and was 
awarded damages. (A bag lady, who 
lives in a doorway with her belo nging s 

of White House videotapes Of fund- 
raising coffees, she catered a news 
conference with a characterization of 
her reaction dearly in mind: “1 was 
mad," she said in answer to the an- 
ticipated question. 

Mad, from the Old English 
gemaedde, has at least three senses: 1} 
“crazy,” as in “Mad King Ludwig” 
of Bavaria; the diarist Samuel Pepys 
wrote in 1664 of a "mad freaking fel- 
low” (which was probably the origin 
of freaked out), or 2) “wildly foolish,” 
as in General (Mad Anthony) Wayne, 
who earned his sobriquet because of 
imprudent actions during die Amer- 
ican Revolution, but who Later became 
the father of America’s Regular Army, 
or 3) “angry, 1 * from the Latin angers, 
“to strangle,’ ’ first used by Chaucer in 
1386, to mean “aroused to a stare of 
ire. 7 ’ Its use in that sense in American 
politics was best exemplified by a fam- 
ily slogan attributed to the Kennedys: 
“Don’t get mad, get even.” . 

A week after the attorney general 
said she had been mad, in the confines 
of a “greenroom” before a television 
appearance, I had the opportunity to 
ask Reno — “Mad Janet,” as old 
fogies -with memories of Mad Anthony 
promptly dubbed ber — why she chose 
that particular word, a selection ob- 
viously premedita te d. 

“Angry is two syllables,” said the 
nation ’s waste-not, wanr-not chief law- 
enforcement officer. "Mad is one. One 
is better.” 

New York Times Sen'ice 

Great Amazon Burn-Off Worsens 

International Funds and Local Regulations 
Fail to Keep Farmers and Loggers in Check 

By Diana Jean Schemo 

New York Times Service 

RIO DE JANEIRO — In Porto Velho 
in western Brazil, thick clouds of black 
smoke have forced airports and schools 
to shut down. 

In southern Para state near the 
Amazon frontier, people gasping for air 
have collapsed and ended up in hos- 
pitals. In the city of Manaus, the sun has 
disappeared for days at a time. 

Twenty years after the goal of res- 
cuing the Amazon rain forest first cap- 
tured world attention, becoming the pet 
cause of celebrities and a regular topic in 
children’s schoolbooks, deforestation 
and the burning of vast territories are 
again climbing. 

Data in recent weeks suggest that the 
burning going on in Brazil this year is 
greater than what has occurred in In- 
donesia, where major cities have been 
smothered under blankets of smoke that 
spread to other countries. 

Despite the fact that hundreds of mil- 
lions of dollars have been spent to save 
the rain forest, buntings in the Amazon 
region are up 28 percent over last year, 
according to satellite data, and 1994 
deforestation figures, the most recent 
available, show a 34 percent increase 
since 1991. 

“Deforestation has done nothing but 

show are deforested each year, the 
Woods Hole Research Institute esti- 
mates that 4,200 square miles arc 
thinned through logging beneath the 
forest canopy. 

Eduardo Martins, the president of the 
Brazilian federal environmental 
agency, said in an interview that the 
increase in fires, while worrisome, did 
not result in an increase in deforestation, 
although the two problems have risen in 
tandem. He contended that most fires 
were set by small farmers who would 
starve if they could not clear land lor 
planting, and that the environmental 

damage paled next to fossil fuel emis- 
sions in the 

le United States. 

Beneath the noxious haze covering 
much of Brazil every burning season is 
an opaque, often contradictory, gov- 
ernment policy toward the environment. 
“Properly speaking, we still don’t have 
a policy, but we have a sum.” Mr. 
Martins told a Brazilian newsmagazine 
rhi«t y ea r. 

Lacking enforcement muscle, the 
government environmental agency ul- 
timately collects only 6.5 percent of the 

provement on the land,” which meant it 
was less likely to be considered un- 
productive and seized for agrarian re- 
form. If the owner sold it for govern- 
ment redistribution to peasants, bunting 
and planting paid off in higher com- 
pensation. Mr. Martins said that was 
changing now. 

But the pace of destruction appears to 
be dictated more by (he marketplace 
than by any government measure. The 


go up.” said Stephen Schwartzman of 

tn\ ‘ 

Scientists say that the Amazon rain forest may be 
reaching a critical level of dryness, in which standing 
forest could catch fire and burn out of control. 


My Encounters With Kurdistan 

By Jonathan C. Randal. 356 pages. $25. 
Farrar. Straus & Giroux. 

Reviewed by C hris Hedges 

T HE bloody struggle between com- 
peting Kurdish feed 


!#/? h> fh nionslrntoi 

factions should be a 
warning to all those who blindly support 
the nationalist ambitions of ethnic minor- 
ities. Throughout this century, a dizzying 
number of Kurdish groups and c lans have 
forged alliances with Baghdad, Tehran. 
Damascus or Ankara to thwart their 
rivals. It is no accident that the shaky truce 
between the two main Kurdish militias in 
northern Iraq, which rose up in 1991 to 
fight Baghdad, was shattered again re- 
cently. plunging the area into another 
round of self-destructive warfare. 

In “After Such Knowledge, What 
Forgiveness? My Encounters With Kur- 
distan," Jonathan Randal, a former re- 
porter for The Washington Post, lays out 
m stark detail the foibles of a people 
cursed by a myopic leadership. IJeoffexs 
an impassioned denunciation of the vari- 
ous regional and world powers that .have 
armed the Kurds and urged them to rebel 
when it suited the interests of those 
powers and then dropped them without 
.warning, condemning them to ignomini- 
ous defeat. He has done so with the 
steady eye of an observer whose own 
hopes for something better have been 

• - ? • 

repeatedly dashed 
of fee Ku 

: the Kurds themselves. 

It is hard to chronicle such a disastrous 
history — especially given fee drive by 

Saddam Hussein to eradicate die Kurds 
— without feeling pity for a people as 
horribly oppressed as they are misled. 
The counterinsurgency campaign by 
Iraqi forces, which included dropping 
poison gas on about 60 Kurdish villages, 
rivals anything die Serbs did in Bosnia 
and far outdistances the Israeli repression 
of the Palestinians. About 4,000 Kurdish 
villages have been razed and tens of 
thousands of people have been rounded 
up and executed. Perhaps 200,000 Kurds 
have been slaughtered in die last decade 
because of their ethnicity. 

For many who have witnessed die 
bloodshed, the indifference of theoutside 
world, and especially the Arab world, has 
bordered on the criminal. Randal can be 
forgiven if at times he soonds a bit 
preachy. This is not a pleasant story. 

About 25 million Kurds live in a swath 
of territory that stretches from ban 
through nor th ern Iraq into Turkey. They 
have, been fighting for an independent 
state formostof this century, but never as 
a unified farce. 

Randal’s account swings awkwardly 
front" ^eporter’g jqernpir to a turgid re- 
countmg of Kuraikh : history, even plod- 
ding through ancient times. But he re- 
gains his poise in the modem historical 
sections, including a damning chapter on 

Shah Mohammed Reza Pablavi and his 
slippery ally, thefecmerU^. Secretary of 
Stale Hemy Kissinger. The two men en- 
couraged and armed the Kurds in north- 
ern Iraq as a way to destabilize Baghdad. 
But the shah, in a secret deal with Bagh- 
dad, eventually damped his Kurdish 
albes, creating an exodus as devastating 
as the one resulting from the aborted 

Kurdish rebellion after the Gulf War. 

The difference, of course, was that in 
1975, no television crews were there to 
beam to the outside world the pathetic 
scenes of those fleeing Kurds, thousands 
of whom were killed and tens of thou- 
sands of whom were driven into exile in 
Iran. The pictures of the exodus of the 
Kurds in 1991, by contrast, eventually 
prompted reluctant world leaders to in- 
tervene to save the Koids and set up a 
“safe haven” in northern Iraq. 

The safe haven brought the Kurds' 
return to their homes, ah Iraqi with- 
drawal from the north and the protection 
of tire region by allied air patrols, which 
continue to this day north of the 36th 
parallel. But the establishment of a de 
facto Kurdish state, the third dns cen- 
tury, quickly succumbed like those be- 
fore it to old hatreds, mismanagement 
And outside indifference or hostility. 

There are some Haws in the book, most 
markedly Randal’s failure to examine the 
concept of an ethnic state as espoused by 
the Kurds. He does not answer, for ex- 
ample, bow an entity based on racial 
supremacy could create a state any more . 

the Environmental Defense Fund, a 
nonprofit group based in Washington. 
“Where the most money has gone is 
where the fires have increased the 
most.” The group noted that half the 
fires recorded this year were in Mato 
Grosso, where the World Bank lent 
$205 million to save the rain forest in a 
natural resource management program. 

Roughly a fifth of the fires that rage 
annually between June and October 
cause new deforestation, and another 
10th is burning off ground cover in 
virgin forests. Scientists say that the 
Amazon rain forest may be reaching a 
critical level of dryness, in which stand- 
ing forest could catch fire and burn out 
of control. 

A report by the Environmental De- 
fense Fund warned the Amazon “may 
be edging closer to catastrophic fire 
events,” and predicted “potentially 
enormous global consequences.” 

The World Wildlife Fund found that 
93 percent of the original Atlantic rain 
forest in the northeast had disappeared 
over the centuries, as well as 12 percent 
to 15 percent of the Amazon rain forest 
The report said that Brazil was losing 
more rainforest each year than any other 
country on the planet In addition to the 
5,800 square miles (15.000 square kd- 

fines it imposes. The rest arc thrown out 
in court. 

In a recent interview. President 
Fernando Henrique Cardoso acknowl- 
edged that the agency needed more 
money and muscle. A bill to strengthen 
it stalled in Congress since 7991. 
passed the Senate this year. It is now 
idling in the House, where the Fed- 
eration of Industries is lobbying against 
it on the ground that threats of rash fines 
and prison will open the way tor cor- 

For now. not surprisingly, the agency 
is usually ignored by the people it is 
supposed to monitor. While permits are 
required for burning, the agency has 
reportedly issued licenses to clear a total 
of only about 24.700 acres (10.000 hec- 
tares) this year, an area seemingly far 
smaller than what would produce the 
dense clouds of smoke that have ap- 
peared over several states. Mr. Martins 

demand in Europe and the United States 
for hardwoods like mahogany, used for 
fumirure. has ushered in large illegal 
logging operations throughout the 
Amazon. And a report by the federal 
secretary of strategic affairs, recently 
disclosed in the Brazilian press, says 
that SO percent of all logging in the 
Amazon is illegal. 

The government appears caught be- 
tween largely international pressure to 
reduce tire amount of burning and de- 
forestation. and powerful domestic lob- 
bies from the logging industry 1 , fanners 
and large landholders. It is building sev- 
eral major roads that will cut into the 
Amazon, and a $ 1 .2 billion state-of-the- 
art surveillance project will soon detect 
minerals, ores and other natural re- 
sources hidden beneath the forest can- 



disputed that permits were issued for 

humane or democratic than the other die- ^ometers) a year that satellite images 
tatorships that plague the region. 

ly such an area, but his office declined 
to provide another figure, or the number 
of permits issued last year. 

While even poorly enforced mea- 
sures and licensing procedures are in- 
tended to deter deforestation, until re- 
cently other government statutes 
deemed cleared forest to be “an im- 

Amazon surveillance project 
could also provide current information 
on deforestation, but ecologists are 
wary, for the Brazilian government has 
been in no hurry to analyze the data it 
has already. After years of saying that 
deforestation was on the decline, last 
year the government released deforest- 
ation figures for the first time in four 
years — showing the 34 percent in-, 

Nor does he discuss whether repres- 
sion alone gives a people aright to rule, 
especially tf what they have to offer only 
mirrors the ideological primitivism of 
their oppressors. That said, this is a fine 
work. II has contributed greatly to our 
understanding of a people who have 
been feted to stumble through this cen- 
tury from one unfortunate tragedy, often 
of their own making, to the next 
New York Times Service 



By Alan Truscott 

tited States 

H AMMAMET, Tunisia, 
— The defending cham- 

pions scored a big victory in 
the semifinal of the Bermuda 
Bowl world team champion- 
ship. Nick Nickell, Dick 
Freeman; Jeff Meeks troth, 
Eric Rodwdl, Bob Wolff, and 
Bob Harnman, won by 119 
against a rival American tea m 
led by Seymon Deutsch. 
r In the finals, however, 
’■^(France defeated the Nickell 
team by 27. The French team 
consisted of Christian Man, 

Alain Levy. Hervfi Mouiel, 
Frank Mult on, Paul Cherala 
and Michel Perron. Ail but 
the last two won the world 
Olympiad title a year ago. 

The semifinal in the 
Venice Trophy for Women's 

Teams was a 
struggle. One United 
team, led by Mildred Breed 
won byjnsr5 against another, 
beaded by • Kathie Wei- 
Sender. The Breed team in- 
cludes Tobi Sokolow, Randi 
Montin, Marinesa Letizia. 
and lisa Berko witz. 

In the final, the Breed team 
defeated China, which had 
beaten France in the other 
semifinal, by 60 points. 

The most exciting (teal of 
the Bermuda Bowl semifinal 
virtually decided the match 
between the two American 
teams. In the diagramed deal, 
Nickell and Freeman, as 
North and Sooth, succeeded 
in reaching six diamonds. 
East had heard his partner bid 
twice and not unnaturally • 
doubled, but the contract was 
unbeatable. South would 

have made an overtrick if the 
opening bidder had held the 
spade king -or die heart di- 
vision had been different 
la the replay Meckstrotb as 
West, made a hypermodem 
opening bid of three spades, 
which in Ms methods showed 
an unspecified solid suit and 
little else. This is extremely 
diffic ult to bid against, as his 
opponents discovered. North 
overcaUed four hearts, and 
Rodwell as East was charmed 
by this development. He 
doubled, which might have 
induced South to retreat to 
diamonds. He did not, and 
that was the most expensive 
•decision of the championship. 
The result was down three, a 

4 AQ3 
9 K Q 10 7 3 2 



♦ 9874 
06 : 

4AKQ 9 53 2 

4 K J 10 6 


♦ 87 

A 52 

• 0 A J 108 74 2 

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North and Sooth were vulnerable. 

fy of 800 and a gain to 
of 20 imps. 

Nickell team 
the biggest swing 

of the 

The bidding: 
West North 



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West led the heart fan-. 




i Freight 
• Watering holes 
io ‘Puttin' on the 
— ■ (Bertha 

14 Completely 

« Earfy part of the 

is 'Toreador 


M Mailing Ctrs. 
31 ‘Damn 



it River to the 

ie balm man 
i» Pope material 
as Metal refuse 


33 Predicament 
w Official 
37 Cartoonist 


M diem (seize 

the day) 

«o Applause, plus 

44 Vasco da 

45 Back talk 

si Martial arts 
expert Bruce 

32 Crvces, 

MM. ' 

•4 Spanish rivers 

sc Cane 

•i Graduate” 


■5 Artist Matisse 
cs Marco Polo 

’ crossedit 
•r Catchall abbr. 
MU<e certain 

4» where some 
shoes are made 

45 Bring home the 



•e An American, to 
a Brit 

70 Ownership 

71 Gobs 

Solution to Puzzle of Oct 31 


1 ETOot, oMhe 
Mamas and the 

QQQ BEES aagi[f||j 


3 Uproar 

4 Men’s room sign 

• “Mourning 

Officer's concern 
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e High-hats 

10 Cheerleaders 
cheers • 

11 Anger 

t 2 Director Burton 
or Robbins, 
is Knock out, as 

with a remote 

Campbell . 

2 s Outcast 
» Go up against 

w Wee 
zs French 



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30 Go on a hunger 

3* Pond covering 
36 Years, in old 

38 Roseanne's ex 
4i Singer Reese 
4t BrszBiaP afrteo 
47 Stored, with 

49 Snacks 

S3 Use RoUerttades 


■s Lacking strength 

si ’Wes 

■ (hymn) 

6 New York Timea/Edhed by Will Shorts. 

SS Concerning 
SB Ship's staff 

'so Joshes 
SI First Chiel 

•2 Red, white and. 

blue teem 
63 Writer Anais 

Israel Is Upbeat on Eve of Talks 

WASHINGTON — Foreign Minister David Levy of 
Israel arrived here Sunday for talks that were set to begin 
Monday with the Palestinian negotiator. Mahmoud Ab- 

“I wonder about what I bear about pessimism from the 
Palestinian side,” Mr. Levy said. “Those who want to 
make progress should show optimism.” 

The ‘Palestinian leader. Yasser Arafat, had said in an 
interview with the Israeli newspaper Ma’ariv that he saw 
“no chance of success” for the talks. 

“The issues are difficult,” Mr. Levy said, “but we can 
overcome die differences and we can make progress. 

“It depends on the efforts of both sides,” be continued. 
* 1 We very much appreciate the efforts of the United States 
to help us” advance fee peace process. (AFP) 

Algeria Warns Against Protests 

PARIS — The Algerian Interior Ministry warned 
Sunday that opposition parties leading protests against 
alleged election fraud would face harsh legal penalties if 
they held more unauthorized street marches. 

Organizers of unauthorized public events will expose 
themselves to the ‘‘rigors” of the 

le law, said a ministry 

statement carried by fee Algerian news agency APS. 
tid Sunda 


said Sunday that they were sus- 
j participation in local councils elected on Oct. 23. 
Thousands of opposition supporters inarched in Algiers 
last week to complain feat die elections, in which sup- 
porters of President Liamine Zerouai were the winners, 
were rife wife fraud. Opposition sources said they were 
weighing whether to organize more protests in Algiers 
this week. (Reuters) 

Brazilian Satellite Launch Fails 

SAO PAULO — Controllers on Sunday were forced to 


destroy the first space rocket launched in Brazil when one 
of four engines failed to ignite, the authorities said, 
inflicting a blow to Brazil’s fledgling space program. 

The controllers destroyed the 20-meter rocket by re- 
mote control 65 seconds after lift-off from fee Alcantara 
base in fee northeastern state of Maranhao, Colonel 
Thiago da Silva Ribeiro of the Brazilian space agency 

The rocket was to have placed a S5 million Brazilian- 
made satellite into orbit to collect information on the 
environment The launching was originally scheduled for 
OcL 26. but was delayed by problems in a land-based 
radar system. (Reuters) 

Cuba Will Assist Papal Visit 

HAVANA — The Roman Catholic Church in Cuba 
has said that fee Communist government had made 
concessions for Pope John Paul U's visit, promising 
public transportation, press coverage and permission fora 
ship carrying pilgrims from fee United States to dock in 

The church also expressed hope feat the Jan. 2 1 -25 visit 
would lead to greater religious freedoms in Cuba. The 
government of Fidel Castro has actively sought the visit, 
hoping it will help undermine U.S. efforts to isolate the 

“Permits will be issued for fee lauding in Havana of 
direct flights from fee United Stales." said a church 
spokesman, Orlando Marquez. He added that fee cruise 
ship Norwegian Majesty would be allowed to visii 

The ship is to cany about 1,000 Catholic pilgrims, 
many of them Cuban- Americans. (APJ 

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■fc . 

South Africa’s Navy , Lost in the Backwater, 


By Donald G- McNeil Jr. 

New York Tows Service 

of Good Hope — Until a year ago, this strike craft 
was called the Kobie Coetsee, Mr. Coetsee, a 
former minister of defense, is soil alive, but the 
South Africa that named ships after apartheid-era 
leaders is noL 

Joe Masego, a corporal in a black South Af- 
rican battalion, was a minor World War II Hero. 
Captured at the Battle of Tobruk and put on a 
harbor work detail, he disabled a German supply 
ship before escaping. 

One of the Masego 's sister ships was renamed 
the Shaka, after Africa's most redoubtable mil- 
itary leader, the 1 9tfa-centuiy Zulu king. It used to 
be the P.W. Botha. 

Of all the parts of the state struggling to remake 
themselves in the post-apartheid era, the South 
African Navy may be having the hardest time. 
Although South Africa shs on one of the great 

naval choke points of the world, the Cape of 
Good Hope, its navy is underequipped, under- 
financed and largely unappreciated. 

It is expected to patrol 1,700 miles (2,700 
kilometers) of coastline and some islands near 
the Antarctic, waters famous for their ferocity. It 
also has had requests to keep an eye on 2,800 
miles of undefended Namibian, Mozambican 
and T anzan ian coastline. To do so, it has nine 
strike craft built in Israel and designed to patrol 
the calmer waters of the Mediterranean, three 30- 
year-old diesel submarines, a Soviet-made ice- 
breaker it bought in 1993 because it was cheap, a 
couple of other transport ships and some very old 

Its obsolete frigates and destroyers were de- 
commissioned years ago. It has no submarine' 
hunting or amphibious ships, and no aircraft 
carriers or jets. 

It has almost no black officers. It wants them 
badly, but the Soviet military schools that trained 
black liberation movement guerrillas produced 

lots of infantrymen and a few pilots, but no 
sailors. It seeks black recruits, but it has also cut 
back from 15,000 personnel to 9,000 and, of- 
ficers said, very few blacks volunteer for its elite 
□nits, the submariners and divers. 

No major world navy keeps a fleer in these 
waters, which are an importam fishery, said 

Commander Douglas Allen, a U.S. naval attache 
here. “We’d like South Africa to become more 

engaged in the maritime sector.” he said. “But 
historically, it's pretty inward-looking as a na- 
tion. There are not a lot of people here who realize 
the sea is their lifeblood.’ ' 

The navy does, and manages to mention fre- 
quently that nearly 1,000 oil tankers and 30 

iorope pass the cape each year. Ninety-five 
percent of South Africa's own exports go by sea. 
If war ever closed the Suez Canal, the cape would 
be even more cruciaL 

The navy wants to spend up to $450 million for 
four nearly new British submarines and $310 

million for four new corvettes, ocean-going ships 

about 400 feet long. Thatwould let the Masego, 
Shaka and their sister ships, which are about half 
riiat long, be relegated to coastal duty, r .. 

Critics ask why the country needs a navy at all, 
when there is no unmioenr threat and The country 
desperately needs bouses, dimes and jobs. 

To counter them, the navy jumps at eveiy 
chance to seem necessary. Its largest vessel, the 
Outeniqua, a cavernous polar supply ship it 
bought from the Soviets for a mere $10 million, 
was anchored near the former Zaire earlier (bis 
year so President Nelson Mandela could try to 
broker peace talks on board between Mobutu 
Sese Seko and Laurent Kabila. 

Last year, navy divers worked far days to 
recover bodies from a crowded ferry that sank in 
Idee Victoria. 

“And a little while ago, we had the pleasure of 
firing a shot across the bow of a fishing boar off 
Namibia,'' said Rear Admiral Martyn Trainor, 
grinning at the memory. 

The waters off southern Africa and Antarctica 
teem with' fish and krill, and hugeforeign foctoiy 
ships try to “vacuum up everything in their 
path,” he said. , _ ' . 

No other country south of Nigeria or Kenya 
has a navy to speak of, and South African Navy 
ships stop dozens of trawlers to sec if they are 
fishing illegally or with destructive giU nets. 

Slowly, the service seems w be winning ns 

a ^nris year. Parliament approved a "force- 
design statement” for the military foal envi- 
sioned a navy with new corvettes .and subma- 
rines. Where the money , would come from was 

left unsaid. ; ' . . 

The change m amtude noneuwiess came as a 
relief to Vice Admiral Robert Simpson- Antler 
son chief of the navy. “We’re' beginning to 
i: ifrwnttont on the sea." he said 

realize that we’re dependent on the sea. he said. 
“Ten years ago, we didn’t. l-hope that-j 

-■ —lV. ..nil m iic :iv ; a nuii 

■ ieu yciua afw, "x *■ - — r- — m niy 
lifetime people will refer to us a* : a maritime 

nation.” ’ i 

U.S. Purified Nazi Gold 

That It Knew Was Looted, 
Erasing Swastikas in 1950 

By David E. Sanger 

New York Times Service 

WASHINGTON — Of the many 
bizarre tales seeping from archives 
around the world m the Nazi gold in- 
vestigations, few are as strange as this 
one: m 1950, the Federal Reserve Bank 
of New Ycnk melted down hundreds of 
gold bars bearing the swastika imprint 
and recast them with a pristine stamp 
bearing the words “United States Assay 

At the time, according to memor- 
andums released by the Federal Reserve, 
the U.S. Treasury knew that much of the 
gold — then worth about $23 milli on — 
had been looted from the Netherlands 
and Belgium after those countries were' 
invaded by Germany. 

The bars, like most of the gold stolen 
by Germany during World War n, had 
been discreetly sold on world markets 
before May 1945 by the Swiss National 
Bank, with the proceeds helping to fi- 
nance Hitler's faltering war effort. 

But by 1950, America's main concern 
was rebuilding Europe, not asking too 
many questions about the origin of gold 
that moved from Swiss hands to other 
countries, and eventually crossed the 
Atlantic into the Federal Reserve’s 
vaults deep below the streets of lower 

Thus, at the request of National City 
Bank, which later became Citibank, the 
Treasury Department authorized the 
“reissue” of the gold — a polite phrase 
for purifying it and wiping out the Ger- 
man markings — so it could be used as 
collateral for a transaction between Spain 
and ITT Carp., the documents show. 

“The facts seem pretty plain," said 
Jack Morris, spokesman for Citicorp, the 
parent company of Citibank, after re- 
viewing documents that the Federal Re- 
serve provided to researchers for Swiss 
television. “This all happened in an era 
when there wasn't as much introspection 
about this kind of transaction." 

The doormen tsprovide a stark view of 
the trafficking of Nazi gold and raise 
some haunting questions. A report issued 
by the Clinton administration this year 
concludes that the German mint often 
took the gold that German troops stole 

from the central banks of Europe and 
melted it together with gold of a more 
gruesome variety: the tooth -fillings, 
wedding rings and other jewelry of death- 
camp victims. Germany’s goal was to 
turn the gold lifted from the mouths and 
fingers of the victims into a form that 
could be traded on world markets, usually 
courtesy of the Swiss National B ank. 

No one knows how widespread the 
practice was; the fillings and rings were 
certainly not part of every bar. and may 
have been part of only a small fraction of 
the mint’s wartime output. But the re- 

Assay°Sffice — an*mstitution that no 
longer exists — likely wiped out all 
traces of what historians delicately call 
nonmonetary gold. In fact, the purpose of 
the re-smelting was to assure that any 
-gold in the Federal Reserve Bank’s vaults 
met the U.S. government's standard, a 
gold “purity’ ’ of 99.5 percent or better. 

There is no evidence in the documents 
that the Federal Reserve or the Treasury 
suspected in 1950 that any portion of the 
gold in their possession bad come from 
Holocaust victims. But the issue is im- 
portant to modem-day diplomacy. For 
the last several months, the Clintoa ad- 
ministration has been trying to persuade 
countries around the world to contribute 
a relatively small amount of gold still 
under the control of the Tripartite Gold 
Commission — set op after the war for 
returning gold to nations around the 
world — to the survivors and heirs of 
Holocaust victims. The fact that some 
portion of die Nazi gold came from 
Holocaust victims provides the rationale 
for tire contribution. 

. The Federal Reserve’s dealings with 
the Nazi gold began when Spain needed to 

Admit Errors 
Toward Jews, 
Vatican Panel 
Tells Catholics 

V ■ 

Ua>moSMl>«rnEiflV- Wjfilt4(Vr« 

Pope John Paul II waving from a Vatican window Sunday. He evoked the Holocaust In remarks to pilgrims. 

INQUIRY: Panel’s Parade of Evidence Details Donations Morass 

Continued from Page 1 

put up collateral to buy a telephone sys- 
tem from] 

i nr in the late 1940s, as Europe 
was being rebuilt under the Marshall Plan. 
Spain shipped $31 million in gold bullion 
to the Federal Reserve, gold that is worth 
about 10 times as much today. 

Interoffice correspondence from the 
Federal Reserve says “some of the gold 
in the shipment was identified as having 
been part of the gold looted by the Ger- 
man authorities during the last war and 
melted and reissued as 1937 Prussian 
Mint bars.” 

record that die campaign finance system 
is totally broken.” 

But die hearings foiled to produce a 
major revelation, which limited televi- 
sion coverage and caused .reporters to 
trickle away, leaving only a tiny audi- 
ence to witness the investigation’s most 
recent public sessions. 

Mr. Thompson said Friday that he 
thought from die beginning that the com- 
mittee had enough material to “pull 
back the curtain” on the 1996 campaign, 
but dismissed as “slim and none" die 
chances of finding evidence of high 
crimes committed by administration of- 
ficials or Mr. Clinton himself — “scalps 
on the wall,” as he put it. 

Yet if there was an expectation of 
scalps, or at least drama, it was created 
by Mr. Thompson himself. He oversold 
the probe on the opening day of hearings 
by speaking of a Chinese government 

plan that is “designed to poor illegal 
money into American political cam- 
paigns'* and that ■'“continues today.” 

The committee never pursued the 
matter. As Mr. Thompson has explained 
countless times since, he was simply 
passing on a highly censored version of 
an ongoing counterespionage investiga- 
tion and never intended that his words be 
taken as a sample of what was to come. 

“I felt that the attorney general 
needed some encouragement,” he said 
this weekend, noting that the counter- 
espionage investigation has become a 
Justice Department criminal inquiry. 
“Tbat'spretty significant to me.” . 

Mr. Thompson's Chinese gambit, in- 
serted atop his opening statement at the 
last minute, was also the sort of thing that 
raised questions about die hearings’ or- 
chestration. Congressional hearings of- 
ten work best as public policy theater 
rather than courtroom give-and-take. 

The Thompson hearings never had a 

story line and showcased few star wit- 
nesses. Instead, they jumped fromJepis- 
ode to episode in which, through tedious 
questioning, often low-level witnesses 
were asked to point the finger at higher- 
ups over alleged violations of arcane 
election law provisions. Mr. 
Thompson’s focus on a legalistic process 
also played to a White House strength. 
Administration lawyers proved very ef- 
fective at rebutting the panel's work by 
reminding reporters that the adminis- 
tration was not breaking the law. 

The mind-numbing technicalities of 
the system are most apparent in what for 
a time was the committee's most fervent 
line of inquiry. Tracking down fund- 
raising calls emanating from the White 
House, the panel found that Mr. Gore and 
pahaps even Mr. Clinton might be in 
violation of a 19th century law that had 
never been enforced but which could be 
interpreted to prohibit soliciting of cam- 
paign funds on government property. 


ROME — ■ The Vatican said Sunday 
that Christians who are anti-Jewish of- 
fend God, and he told Roman Catholics 
to admit past errors against Jews and not 
repeal them. 

The Roman Catholic Church's strong 
stand against anti-Semitism was de- 
livered in the final statement of a sym- 
posium on the religious roots of anti- 
Judaism in Christianity. It followed a 
speech Friday by Pope John Paul Q. who 
told the theologians that many Chris- 
tians had failed to live up to their faith 
when die Nazis set about exterminating 
Europe’s Jews in the Holocaust. 

Speaking in Polish to pilgrims in St. 
Peter's Square on Sunday — All Souk 
Day, when the church commemorates 
the dead — the 77-year-old pontiff re- 
called those who died “in Auschwitz 
and other concentration camps." 

The statement Sundayon the symposi- 
um said Christians must realize that the 
first step on foe road to conversion for 
past sins was to acknowledge the facts. 

If Christians wanted to put the torment 
of foe past behind them, they had to 
“know how to forgive and how to seek 
and receive forgiveness,” it said. 

The Pope has said several times re- 
cently. thatthe church should use the start 
of the third millennium to make an “ex- 
amination of conscience" and seek for- 
giveness for errors and sins. 

The statement said foe force -day sym- 
posium, which met behind closed doors, 
was "one step along a long road" of 
improving Christian-Jewish relations. Its 
main purpose was to prepare a dossier for 
the Pope, from whom Jewish groups want 
a major document on foe Holocaust. 

The symposium on “Roots of Anti- 
Judaism in Christian Circles" focused 
on religious attitudes toward Jews in 
Christian teaching in foe past 2.000 
years and how this affected history. 

Both foe participants and the Pope 
acknowledged during the symposium 
that "wrong interpretations" of foe New 
Testament relating to Jews had circu- 
lated for too long and had engendered 
sentiments of religious hostility that 
fueled anti-Semitism. 

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FRANCE: Truck Strike Threatens Chaos 

Continued from Page 1 

maximum of 120,000 francs by foe end 
of 2000. 

The Ministry of Transport said truck- 
drivers earned an average of 7,735 
francs last year for 250 hours of work a 
month. The truck drivers demanded an 
immediate increase to 10,000 francs a 

While foe employers want to set work- 
ing hours on an annual basis in the in- 
terests of flexibility, foe drivers also are 
insisting on a limit of 200 hours of work 
a month. The unions contend drivers 
have to spend up to 61 hours a week at 

Doctor Gives Yeltsin 

Clean Bill of Health 

Aftenee Frtmce-Pmse 

MOSCOW — Renat Akchurin, the 
Russian surgeon who carried out a suc- 
cessful heart bypass operation on Boris 
Yeltsin a year ago, gave the president a 
clean bill of health Sunday. 

"Yeltsin's condition does not arouse 
any worries," said Dr. Akchurin, who 
has been attending an informal summit 
meeting between Mr. Yeltsin and Prime 
Minister Ryu taro Hashimoto of Japan in 
the Siberian city of Krasnoyarsk. 

But be added that foe 66-year-old 
Russian leader should undergo a series 
of medical tests to check his condition 
following the Nov. 5 quintuple heart 
bypass operation last year. 

“Medical checks are a must a year 
after heart surgery, but the president is so 
busy foal it's difficult to catch him and 
agree on a medical examination," Dr. 
Akchurin was quoted by the Interfax 
news agency as saying. 

Mr. Yeltsin underwent heart suigery 
to cure ischemia — a blockage of foe 
coronary arteries that restrict blood flow 
to foe heart — after suffering three heart 
attacks in 15 months. Doctors attributed 
the deterioration in his heart condition to 
his refusal to reduce his workload. 

In stark contrast to Mr. Yeltsin’s 
slurred, pondegjusspeech before the op- 
eration, the president has been a picture 
of health this year. 

the wheel, at the cost of highway safety, 
to make a small wage. That is more than 
the 48-hour maximum on working hours 
set by the European Union. 

The drivers appeared to be following 
foe script of a 12-day strike last year, 
when they won the right to retire at 55, 
and other actions in 1986 and 1992. 

Deregulation in the industry has 
spawned hundreds of small companies, 
many of which are family owned, that 
are engaged in a cut-throat struggle to 
pay operating costs and survive. Drivers 
at many companies said they still were 
waiting to be paid the 3,000-franc bonus 
they were promised as part of the price of 
ending last year's strike, and there was 
little trust between foe two sides as foe 
strike pressure mounted. 

Last year, foe driven managed to 
bring much of the country to a halt and 
caused widespread disruption in Europe 
by blockading key highway inter- 
changes. Anticipating similar actions 
this week, many truck companies 
ordered drivers to return to their bases 
before the scheduled start of foe strike. 

In London, a spokesman for foe Road 
Haulage Association said hundreds of 
British trucks were stranded in France, 
because of foe weekend ban on com- 
mercial transport. 

British truck operators said they were 
still waiting for France to pay com- 
pensation for the losses they suffered in 
last year's strike. The effects of foe strike 
are expected to be felt across much of 
Europe, especially in Belgium, foe Neth- 
erlands, Germany, Luxembourg, Italy, 
Spain and Portugal. One British super- 

* ■ 

GET A HORSE — Contestants in the annual London-Brigbton vintage car rally preparhmSiS^to set 
off for the seaside town from Hyde Park. Nearly 450 cars, all built at least 93 years ago, took part. 

Respiratory Ailment 
Hospitalizes Havel 

The Associated Press 

PRAGUE — President Vaclav Havel 
will have to be hospitalized after four 
days of home treatment for aggravated Jf: 
bronchitis, Czech television reported*:... 


Official reports call Mr. Havel’s ill- 

ness aggravated! bronchitis, but Mr. 
Havel’s wife, Dagmar Havlova, said. 
Saturday that foe 61 -year-old president 
was suffering from pneumonia. 

“The president will continue treat- 
ment in the hospital,” a government 
spokesman, Ladislav Spacek, told 
Czech television, without elaborating on 
the president's condition. 

But both Mr. Havel's wife and bis 
doctor, Dja Kotik, said Saturday foe 
president was so ill that he had to spend 
Wednesday night in Prague’s general 
military hospital. 

Mr. Havel was diagnosed Thursday 
with a viral infection. He was forced to 
cancel his regular weekly radio address 
Sunday and to postpone an official visit . 
to Britain and a ceremony to appoint 
force new government ministers, both 
due in early November. f 

Last December, Mr. Havel underwent 
surgery to remove a 15mm malignant 
tumor and half of his right lung. Until 
then, Mr. Havel had been a lifelong 
heavy smoker. 


market chain chartered a ferry to bring 

ids of 

IRAQ: Baghdad’s Defiance Over Inspectors Brings Angry Response From While House 

its trucks back from Spain with loads 
fruit and vegetables. 

Last week, the European Commis- 
sion, the executive body of the 15-nation 
European Union, urged France to keep 
its main highways open. 

The strike is perceived in Brussels as a 
threat to Europe's single market, which 
calls for -open and equal trading con- 
ditions across the Continent. A member 
of the European Parliament, Anne McIn- 
tosh, told Reuters that the commission 
should withhold French form subsidies 
and use foe money to compensate for- 
eign truck companies for the losses they 

Continued from Page 1 

said, “Absolutely.’ 

M, n ■ . WIUMWU UH%*v W 

1 ne Senate majority leader. Treat Loti when foe two others were barred. Ui »ou. . -- ----- - inu^nuns. rep»»» ^ 

of Mississippi, supported “whatever ac- The brewing crisis, in foe view of many While U.S. officials were ulainlv S, L ^ !rac l was withholding in- 

tions are necessary” U.S. officials, is the latest'attempt by Mr. angered by Mr. Saddam's behavior. BaSXd denies the clu r 

Y $ ec-iriss. 

| fife 

" I 'tlx 

S (lfr 



• 9 Q 




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Attn: Pnsduc of QSHtanta 
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Genera/ PosftionsAvaibbh 

US, pronder d au ft mm taqroefls, ' 
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■ ereit The job rf efeo inctada owr 
comcuncacon retried task. Based to 
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I da r na B nnri IBA Progamma In tala 
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tateml mo u fceeri conaaiy 
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TRANSLATOR FrenddEDgkriFrarcIi 
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poRbri, technical Bridt. Tef: +33 (0)1 
53 62 15 31 mrisfeOcbbtatamBt* 

BUNG UAL French totes •onsn, 47, 
seeks job ta Ne* Yrik as a secretary or 
French tutor (chattel or atob). Bar 
444, LRT, 92521 teriy Cadet. Ffena. 

A deoee in Eductfon or PsyOiobgy 
k pretoned. Sent CV (both n Roach 
8 ii fiigksri. tetor i photo to 
Ht. Sandrioe Bates 
IBB, BffC Gmduata School 
ri tatamriionri Boriams, 

26 nit dw Sabtoftm, 
75343 Park Cadn 07, Fares. . 



tar Busteess Paste. 

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ence 8 excalent totoNtedoe d Frotefa, 
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Will be holding its final 
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on: November 17th 1997 
at: The Conference Centre 

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For further details on Kaplan's GUAT courses 
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S Pour fa direction 



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web pages www.ocraccu 

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Bond Street - HA Kioto, fta, Tate 
Tat 44 171 290 9000 F* 177 4SB 7517 


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WTW« aamfcn* « 5X, not MHf 

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Business Travel 

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wiaS address: toaperttoOtaolanst 


Hie latcnatiooal Centre for Theoretical Physics, a l.NESCCHAEA 
organisation based in Trieste. Ibtiy, in a beautiftd locaboo o\eriookii% 
the Adriatico sea, is scekii« a qualified person lo GH the position of 

Senior Administrative 

The 1CTP is a Research Centre that provides facilities to conduct 
GriSinal rcseanb lo to vtsuocs, and iicflra> wiiri ihe Ke+i 

goal nf promoting physical and luathematicai sciences ir. the 
devdopiras couniries. Aboui -+OOU sdentias from S& mi? line uurid visit 
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b of the order of USS2D imlfon. Il cwnpnses a Some- Sec3ir and an 
.44ninsinahv Seoor. Hie smessfa) andidjle will he in duny.* o?‘ jbr 
supervision and coordination of all activities in the Admiiusuativc 
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supervision and coordination of General Services t including the 
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Dekutte & 




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Centre International de Formation 
Centro Internacional de Formation 

! >■ ^-fct.lM- % JIT kum-J a. mlwiil tot nylk3U»i|» W Utf TVM ■ 1 


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Thr IU* Tuna Cratrr 11 m rfu! upportamft- psyriitr 


iF) is trie larges heamnavqov- 
n tei Kenya. AMREF nas s 
ri Kenya U 02 riCa Tanrafna ard 
affined naonal organsaons r 
«s leriraroeni in SerXembeM 9%. 
rGmeial reports lo a 25 member riprn 2 ^fi' 
leactersbip aid take weraE tespOT&MSv fof 
based teaJft programmes. Stete wil need 
of srffoer* rescuroes. The Director General 
I provide stopon and oudance to a votanteer 
SRerie «r 0 aosa provioe laadssbp to a diver- 
d NonTt Amencan aWales ntn ihek own vst- 

Tha BuccesdU appfeani wil hove 

• an storcae irw»s*y degree, prsferabb in the health fidd 

• Idaaly. ten yBais wxlong experience in devotapng counnes vrth 
proference given to Airiest experience 

• at bast Sve yuare senior managemeni responsibly wnttai a mediwn to large seed 

• famiariiy wtfi irtemalional NGOs 

‘dernons&atedat% to convrurtcate at Wghesl levels of Government, ttie pnvata 
sector and the made. 

•a proven rack record in mourns generation from tbepubkc and prorate sectors 

■a strong abfty to think straiegicaly 

To flu ri^it canridatB. AMREF offs a competUve salary and benefits package. 

tkon tater and doalBd CV. nficatraa dro and everaig contact telephone and tax nwn- 
Oac cufTBnr cemiraaton nfortnamn. t Bta phone . fax and address ol at least throe raf- 
eees by 15 December 1997 id toe totming adekess 

— -— The Director 

DeMttBlgochs Executive Seiecdon DivWon 

TjJimhIiu Detoitte* Touche Consultants Limbed 

HfllmSISB PO Box 40092 -Nairobi. Kenya 

h lH IB lmi ll T«J: f+254-2) 441305-1 2- Fine (+254-2 446 966 


l Ir^uisitn' inU'm; ill* pn'inn't pl.iu, 
nuus jvnfn/vnns linin' in/uijw. 


de direction bilingue 

150/170 KF - Paris 

Vims SL'cundi'Z 1c drrigfjm ilv rruiblissi'ineiii. 
cn iissurant son M.vrt' Iu yi-sliun de Min plan- 
ning et la reception dvs uppi'ls teleplinniquvs. 
Diplunu'lel dc I'enseigneincnt supi-ricm et dc 
ianguc maiernellc anglaisc. wins mail riser 
parfaiienu'iu Ic tranvais a IVcrii et u l'orul. \ous 
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Dynamique. reuctif ivcl et entrcprenuniiel. vous 
savez fonctionner cilicacemont dans une petite 
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connaissez les outils de bureaurique sui 
Macintosh l Word et Works). 

Merci d’adrehser voire dussier de candidaturv 
complet sous la reference AQOl ii noire conseil 
Emmanuel Dupont. Agura Selection. IBrueloInn; 

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PAGE 10 


Asia's Financial Turmoil / How Serious? Will It Spread? 

Tbr WWwI Hr* \**lirr IfMrt-IVw 

In the global marketplace, ail eyes and thoughts were on the Asian financial collapse and rally, from an investor 

in Bangkok to two in New York to an exultant trader in Tokyo to one mimicking suicide m Sao Paulo. ^ j t - 

For Europe, the Crisis Comes at a Bad Time but Is Not a " D, “ 

By Alan Friedman 

International Herald Tribune 

PARIS — The financial and stock- 
market crisis in East Asia is expected to 
have only a mild impact on European 
corporate profits and economic growth. 

But even a small dent in the Con- 
tinent's performance, as many econ- 
omists note, is bad timing for Europe 
while it is struggling with the fiscal 
austerity imposed by its drive toward 
monetary union.' 

Thus, any setback, even a mild one, 
may not be a threat but is certainly a 

nuisance — one more complication for 
policymakers focused on preparations 
for the launch of the planned common 
currency, the euro. 

Many economists agree that the net 
effect of reduced European exports to 
East Asia and increased competition 
from Asian manufacturers benefiting 
from sharply devalued currencies will 
probably be to knock about a quarter of 
a percentage point off 1998 growth in 
the Big Four economies of Europe — 
Germany, France, Britain and Italy. 
Thai translates into a fall in next year's 
growth expectations from an average 

for the four countries of around 3 per- 
cent to around 2.75 percent, which ana- 
lysts say is not a disaster. 

Likewise, with European exports to 
the most troubled countries — Thai- 
land, Malaysia, Indonesia, the Philip- 
pines and South Kbrea — accounting 
for less than 10 percent of total exports, 
the impact is likely to be a redaction of 
less than 5 percent in European cor- 
porate profits on average. The main 
exceptions — companies that will prob- 
ably suffer more than othejs — are 
European makers of luxury ‘goods as 
well as major contractors tint have bad 

big Southeast Asian projects canceled. 

The real problem is that against the 
backdrop of he single-currency project, 
European gove rnments have tittle room 
to be distracted by such external prob- 
lems as tire effects of tire Asian crisis,* 
however minimal. They need to nurture 
and sustain Europe's economic recov- 
ery, which is stm at an early stage, 
economists say. • - - . 

The Europeans need stronger growth 
for two reasons — to keep unemploy- 
ment from rising even higher than its 11 
percent European average and to sustain 
tax revenue to keep budget deficits at or 

ASIANS: In the Debris, Uncertainty Rules 

Continued from Page 1 * 

and income, high levels of external debt 
and relatively low foreign exchange re- 

That is why Thailand, the Philippines 
and Indonesia have had to turn to the 
International Monetary Fund for 
standby loans. 

Analysts said that a worsening bank- 
ing crisis, underlined by the closure over 
the weekend of 16 banks in Indonesia, 
threatened to further undermine con- 
fidence and growth in the region. 

Robert Zielinski, regional hanking 
analyst at Jardine Fleming Securities 
Ltd., estimated that the total of bad loans 
in Southeast Asian banks would peak in 
1998 at $73 billion, accounting for 14.7 
percent of total loans outstanding. 

That is equal to 13.3 percent of tire 
combined gross domestic product of 
Thailand, Indonesia, Malaysia, the Phil- 
ippines and Singapore, he said, "mak- 
ing this crisis relatively bigger than 
either those in Japan and the U.S. or 
previous banking crises in Southeast 
Asia.” Gross domestic product is the 
total value of goods and services pro- 
duced by an economy or group of econ- 
omies, excluding income from foreign 

Mr. Zielinski said that the underlying 
causes of the problems in Southeast 
Asia's banking industry were excessive 
credit growth, a high dependence on 
foreign capital inflow, overexposure to 
property and stock markets, weakening 
export competitiveness and ill-con- 
ceived investment. 

“Past crises were triggered by ex- 
ternal factors related to the world econ- . 
omy and commodity prices,” he said. 
"This time, the crisis is internally gen- 
erated and therefore will be more ex- 
pensive and harder to solve.” 

Simon Ogus, head of Asian econom- 
ics in the Hong Kong office of SBC 
Warburg Dillon Read Securities, said 
that much of Southeast Asia faced a 
prolonged economic slump and that re- 
covery would take two or three years. 

In the meantime, he said, average 
annual growth of the region's major 

economies plus India would sag to 4.7 
percent in 1998 and 5.7 percent in 1999 
from 6.6 percent this year, after ad- 
justment for inflation. 

One bright spot in the SBC Warburg 
Dillon Read forecast is that China — the 
second-largest economy in Asia, after 
Japan — will continue to grow rapidly: 
at 9 percent in 1997, at 7 percent in 1998 
and at 8.5 percent in 1999. 

Mr. Ogus said that Thailand’s once 
high-flying but now stalling economy, 
hit by a- major property glut and wide- 
spread loan fosses among finance 
companies and banks, would contract to 
1 percent in 1998 and manage to creep 
back to only 2 percent growth in 1999. 

He said that other badly affected 
Southeast Asian countries — Indonesia, 
Malaysia and tire Philippines — would 
see annual growth slow from between 5 
percent and 8 percent in tire last couple 
of years to between 1-5 percent ana 4 
percent in 1998 and 1999. 

Mr. Ogus also said that tire tremors 
from Southeast Asia's economic earth- 
quake, in the form of diminished trade, 
investment and business confidence and 
greater bank-loan losses, would hel 
knock more than a percentage point 
growth in Hong Kong, Taiwan and 
South Korea in 1998 and 1999. 

Economists and bankers generally 
agree that South Korea, reeling from a 
wave of corporate bankruptcies and 
strains in the banking system, is the 
northeastern Asia economy most vul- 
nerable to contagion from the- southeast 
■ “The Korean economy is extremely 
unstable,” said Desmond Supple, head 
of Asian currency research at BZW Se- 
curities. “Credit risk is now tire central 
story in the region, and Korea is among 
the worst stories.” 

Debt owed by Korean companies to 
foreign banks rose 40 percent to $100 
billion in the 18 months to the end of 
1 996. Two-thirds of it is due to be repaid 
in less than a year. 

Still, other economists and bankers 
say they remain optimistic that East 
Asian countries can recover from such 
problems, as they have in tire past 

Goldman Sachs's economic research 

Mounting financial and currency problems, in several Southeast Asian ' 
countries set off a string of events that led to a broad sell-off in American ■ 
markets. Southeast Asia, while among the fastest growing regions 
anywhere, still accounts for only a small fraction of total U.S. trade and •. 
economic activity. (Figures in billions) 

Currencies vs. the dollar, . External 1996 % share 

% change June 30 through Oct 31 debt as a GDP of total 

% of GDP U.S. 


PHILIPPINES 83.5 1.14 

— ■ 

SINGAPORE WMl 94.1 2.45 


S. KOREA 484.4 n.a. 

-5.9 m AUSTRALIA ||||| 398.3 1.08 

+-°3 | HONG KONG 155.0 1.60 

Sources: Census Bureau: Economist hveBgenca Uni; IMF; Btoombug; NYT m percentage of V995QNP 

below the level of 3 percent of gross 
domestic product level mandated by the 
Maastricht treaty. 

For Europe to begin creating jobs, 
economists agree, growth will have to 
stay at a level of 3 percent or more for at 
least two or three years. Given Europe's 
generalty anemic growth rate, even in 
rimes of recovery, mis se ems unlikely. If 
growth were dented by a quarter of 
percentage point, Europe’s economies 
would probably lave to run just to stand 
still on the unemployment front 
Despite these factors, many Euro- 
pean officials and economists remain 
unworried by tire overall impact of the 
Asian crisis. 

“Our fimdamentals remain good, 
with low inflation, favorable interest 
rates and business confidence,” said 
Yves-Thibauit de Silguy. the European 
economics commissioner. In an inter- 
view, be raid European economies were 
oot seriously exposed to Asia because 
Europe's exports to Asia represented just 
2 percent of its gross domestic product 
In Munich, Martin Huefner, chief 
economist of Bayeriscbe Vercinsbank, 
said: “I think the real consequences of the 
Asian situation on Europe are exagger- 
ated. Asia is not collapsing; it remains U 
growth center of the world And Euro- 
pean exports to the region are smalL” 

In London, Guenther Thumann, an 
economist at Salomon Brothers, said tire 
effects of the Asian crisis on Europe 
“are going to be visible, but I wouldn't 
call them serious.” 

He was among the several econo- 
mists forecasting a drop of one-quarter 
of a percentage point in 1998 growth 
rates as a result of Asia's woes. 

Mr. Thumann also raid the 'roller- 
coaster in equity markets triggered by 
tire Asian crisis and Wall Street's vi- 
cissitudes should mean that the Bundes- 
bank was less likely to raise interest rates 

agnj n this year. Other economists, 
however, said the most recent Bundes- 
bank increase in shortterm intercalates, 
from 3 percent to 3.3 percent, was less 
related to real economic factors than it 
was a part of an attempt to bring German . 
and sane other Continental rates into 
line with higher levels in some other 
single-currency candidate countries. 

- Andy Scott, director of international 
affairs at the Confederation of British 
Industiy, conceded that there would be 
“inevitable impacts on British busi- 
ness.” But he added that “from the 
manufacturing point of view, these are 
still attractive markets and not ones you 
go in and out of on a whim.” 

As a result, be said, many British 
companies “are looking at the long term 
and are prepared to weather some ups 
and downs.” 

These ups and downs could have im- 
plications for Europe’s trade not only in 
the most troubled parts of East Asia but 
also in Japan and South Korea, which 
are experiencing severe domestic eco- 
nomic problems. • 

“A slowdown in Asian import de- 
mand is going to have an effect on 
continental Europe, whose primary mo- 
tor is exports,'’ said Paul Home, chief 
international economist at the Paris of- 
fice of Smith Barney. Mr. Home said 
c onsum er confidence in France and 
Germany remained “soggy" and said 
this was why any drop in demand from 
Asian buyers of European goods was a 

Andrew Fieris, managing director at 
Rank of America's Hong Kong office, 
predicted that as another side effect, 
“There will be more complaints against 
cheap labor , 1 child labor and unfair trade 
practices in Asia because Asian cur- 
rencies are now so devalued that these 
countries will become more aggressive 
competitors on the world stage.” 


jilatuii I 


group in Hong Kong said in a recent 
report that East Asia, excluding Japan, 
is capable of growing at 7.25 percent 
annually in the next 10 years, even 
though growth will drop in some coun- 
tries in 1998. 

Alihough the predicted regional 
growth rate is lower than the 8.25 percent 
of the last decade, it would be well above 
the average for industrialized nations. 

“The factors that have sparked 
above-average increases in GDP in Asia 
for the last 20 years did not disappear” 
in the recent financial turmoil, said Don 
Hanna, a Goldman Sachs regional econ- 
omist. “Open economies, high savings 
and flexible markets still characterize 
the region." 

Peter Homes, a director of Aberdeen 
Asset Management Asia Lid., said that 


he also thought the region “can, and 
indeed will, emerge fitter and stronger 
from its current problems — provided 
deregulation is speeded up, banks tight- 
en their risk controls, excesses are cor- 
rected and companies start focusing 
more on shareholder returns.” 

Mr. Roche of Independent Strategy 
said that he was confident East Asia 
would return to high growth track if 
made more efficient use of capitaL 

“Governments must also ran budget 
surpluses, have a tight monetary policy, 
clean up the financial system and reg- 
ulate it properly and free up all domestic 
monopolies,” ■ Mr. Roche said. “It 
means an awful lot of vested interests 
are going to lose. But if the governments 
don't do it, this region will fade from 
global radar screens very quickly.” 

Japan: Indirect Hits Hurt Too 

Hong Kong: So Far, Dealing From Strength 

HONG KONG — Although it has not 
been spared in Asia's currency crisis, 
Hong Kong still has far stronger eco- 
nomic fundamentals than the hardest- 
hit countries of Southeast Asia. It runs a 
trade surplus, for example, and is sitting 
on 58 8 billion in foreign reserves. 

Still, if local depositors were to lose 
confidence in their currency, the $200 
billion now mostly locked up in He 
Kong dollar deposits could easily ' 
its way into foreign currency or out of 
the territory altogether. The Basic Law, 
Hong Kong's constitution, mandates no 
capital controls. 

Are people sending their money 
abroad? Only Hong Kong’s Monetary 
Authority knows, and it says it will not 

disclose figures until December. If these 
tell of a ran on the currency, speculators 
against the Hong Kong dollar may be 
bock, sensing weakness. 

Hong Kong also stands out from the 
rest of Asia in tee way that it has chosen 
to become more competitive. As tee 
holder of tee last major currency in tee 
region with an essentially fixed rale of 
exchange — its dollar is allowed to 
fluctuate only slightly from a central rate 
of 7.80 to the U.S. dollar — it has chosen 
to get the price of real estate in the 
territory down by raising interest rates. 

This makes it expensive to speculate 
against the Hong Kong dollar, and it 
pummels land prices — which nev- 
ertheless r emain among the highest in 

the world. The potential cost to Hong 
Kong is a brutal recession if its battle 
with currency speculators is not re- 
solved in the next few months. 

By keeping interest rates for above 
tee levels at which banks now lend, the 
government has effectively halted tee 
property market That has hammered 
the stock market, where some 70 per- 
cent of companies rely at least in part on 
real-estate earnings. 

The other choices — to let the cur- 
rency peg go or to ny to reset the Hong 
Kong dollar’s value at a weaker level — 
would go against dozens of promises 
made by the government that the peg to 
tee U.S. dollar will stay just as it is. 


TOKYO — Among East Asian econ- 
omies, none will suffer as small a direct 
hit as Japan from the currency and stock 
market turmoil that has shaken the re- 
gion since July. 

Japan, the world's second-largest 
economy, accounts for about tfaree- 
n dependent Strategy quarters of gross domestic product in 
confident East Asia East Asia, excluding China. With a pop- 
iigb growth track if ulation of some 125 million people, 
Japan boasts a large and affluent do- 
mestic market 

Nonetheless, Japan's domestic econ- 
omy is weak, ana some analyses have 
warned that the fallout from tee con- 
tinuing crisis could be the straw that 
breaks tire camel's back. Southeast Asia 
is bote a big market for Japanese exports 
and home to scores of factories owned 
by Japanese. 

Japan's economy has taken longer 
than expected to rebound from the col- 
lapse or a speculative bubble in tee early 
1990s. It appeared to be back on track • 
last year, but policymakers raised taxes 
in April. That hit domestic demand hard 
and sent tee economy back into tee gray 
zone between recovery ami recession. 

Tokyo stocks are at two-year lows, 
and tee yen has settled at a rate 50 


rcent below its highs against tee dol- 
lar reached in 1995. 

For now, only strong exports, Japan’s 
perennial bright spot, are -preventing 
another recession. The yen’s weakness 
against the dollar has made Japanese 
goods more competitive overseas again 
and sent the trade surplus soaring. 

Some analysts worry, however, that 
the regional turmoil will imdermine 
consumer confidence worldwide. Thai, 
the analysts say, could hurt Japan’s ex- 
ports not only to Southeast Asia but also 
to its biggest export market, the United 
States. If that happens, a smalt but vocal 
minority of analysts insists, Japan could 
suffer its second recession in less than 
five years. 

By contrast, many economists fore- 
cast a rebound in Japanese consumer 
spending by the end of this year and ; 
economic growth in Japan of around 2 
percent next year, compared with 
around 1 percent this year. * 

But until it becomes more apparent 
how badly and where Southeast Asia’s 
turmoil will deni Japan's economy, 
share prices and the yen are likely to 
remain weak. 




Singapore: The Blow Softened 

South Korea: One Big Problem After Another 

SEOUL — For South Korea, the tur- 
moil rocking Asian stock markets and 
currencies, including its own, has come 
at one of the worst possible times. 

Its financial sector already was 
weighed down by a mountain of un- 
recoverable debts after a spate of bil- 
1 ion-do liar corporate bankruptcies. 

Most of the conglomerates that dom- 
inate the economy were heavily in- 
debted after borrowing to fund expan- 
sion plans drawn up at a lime of stronger 
growth. And the government of Pres- 
ident Kim Young Sam, mired in cor- 
ruption scandals, has not turned the 
economy around or pushed forward 
with much-needed deregulation. - 
Worse,, the sharp declines in share 
prices across Asia have hit ’consumer 
spending in some of South Korea’s most 

important markets. The accompanying 
cdUapse in South Korea share pnees — 
they are at five-year lows — has hit 
consumer sentiment and spending at 
home as well. 

Earlier in this decade. South Korea, 
the world’s I lth-Iargest economy, was 
growing at about 9 percent a year. This 
year, by contrast, the government has 
forecast economic growth of just over 6 
percent, and some private economists 
expect less than 5 percent. 

All the same, South Korea's econ- 
omy is fundamentally far stronger than 
rhose of Thailand and Indonesia, and 
analysts predict ir will recover more 
quickly quicker than those of most 
Southeast Asian nations. 

'Compared with their counterparts in 
Southeast Asia. Korean banks have a 

low foreign-exchange risk, less than 13 
percent of their funding comes from 
overseas, and their exposure to the vol- 
atile real-estate sector is limited. This 
makes an imminent collapse of the 
South Korean banking sector unlikely, 
analysts say. 

Furthermore, the foil in the South 
Korean won to a record low against the 
dollar has helped many manufacturers 
by making their goods more compet- 
itive. The won has fallen nearly 15 
percent since the start of the year and is 
helping South Korea narrow its trade 

■Still, some economists said that until 
tee financial turmoil subsided, neither 
Seoul’s flagging stock market nor the 
won was likely to rebound much. 


SINGAPORE — By most conven- 
tional measures, Singapore is a model 
economy, with almost none of tee policy 
■ flaws that led to the recent plunges in the 
values of regional currencies and stocks. 

The island state has been piling up 
budget surpluses year after year. Its cur- 
rent-account surplus in tee 12 months to 
June amounted to $15.5 billion, while its 
foreign-exchange reserves, including 
gold, stood at nearly $81 billion. 

Singapore has invested heavily in 
education and trailing to take fiiU ad- 
vantage of technology to drive its econ- 
omy forward. Its markets are almost 
completely open to foreign competition, 
and most of the few sectors that remain 
partly closed, such as telecommunica- 
tions, are being liberalized. 

Foreign investors praise the govern- 
ment as uncomipted, efficient and con- 
sistently pro-business, and investment 
continues to pour in. . 

Yet Singapore 's. stock market and 
currency also have been hit by the re- 
gion’s financial turmoil, though not 
nearly as hard as Thailand. Indonesia, 
the Philippines and Malaysia. 

So far this year, the Stock Exchange 
of Singapore's main index has fallen by 
more than 25 percent as confidence has 
evaporated and foreign and local in- 
vestors have pulled out. 

Even the normally strong Singapore 
dollar has lost about \ 1 percent against 


the U.S. dollar, although it has made 
large gains against regional currencies. 

“Being located at the crossroads of 
Southeast Asia, it would be almost im- 
possible for Singapore not to be affected 
by the developments in the rest of the 
region. particularly those in immediate 
neighboring coumries like Indonesia 
and Malaysia,” said Sanjoy Chow- 
1 managing director of Fraser- 
AMMB Research Pte., a unit of Malay- 
sia s AMMB financial-services group. 

More than 50 percent of Singapore’s 
total merchandise exports in 1996 went 
sevenAsian economies, with Malay- 
sia and Thailand together accounting for 
about a quarter of the total. 

But Ong Sin Beng. an economist in 
«« Singapore office of J.P. Morgan.said 

sec,or “relatively 

insulated from regional demand bc- 

°. f its omput was destined for 
North America. Europe and Japan. ' 

e/*nriS? ugh l 5 ere ^ weak spo® in the 
cx “?P Ie ' the property 
market and the retail sector — many 
ecanemusrs expect Singapore's gross 
mesne product to increase in 1997. 
•■titli™ wdl ! u P f ? aid lhat in 1998, the 

"onihpSl 13 ” 0 - IS for to slip, 
J * “JpfnpnMi that most of SoirK 

= en ! er *“* “onomic slow- 



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Asia s Fi nancial Turmoil / The View From Wall Street 

PAGE 11 

Wall Street: 

By Mitchell Martin 

International Htruld Tribunt 

NEW YORK— It can’t happen here 

they re saywg. Not with thiskind of an 
economy, at least. 

After reacting violently to, and in 
sympathy with, tumbling Asian stock 
markets investors in the U.S. mate 
rethought their fears and decided there 
WMnot really much to worry about 

The reason is that the American econ- 
omy is either good or great depending 
on whom you ask. Even the usually 
cautious Alan Greenspan, chairman of 
the Federal Reserve Board, last week 
characterized economic growth as * ‘ro- 
bust” and inflation as “low.” Sub- 
sequently, the government reported that 
third-quarter growth was faster than had 
been expected, with the economy show- 

Too Healthy Right Now to Succumb to a Case of ‘Asian Flu 5 

mg a 3.5 percent expansion with nearly 
undetectable inflation. 

So after a tumultuous week that saw 
the Dow Jones indnsrrial average post its 
largest daily point loss — followed by its 
largest daily point gain — the U.S- fi- 
nancial markets ended up pretty much 
where they had begun: with stocks dial 
were highly valued by historical mea- 
sures and with downward pressure on 
interest rates that pushed up ted prices. 
The pressnre on tbeHong Kong stockand 

currency markets was seen as t emp orary 
and unlikely to affect the world economy, 
or that of the United States. 

Besides, “there is not an economic 
problem in Hong Kong,” said Henry 
Gooss. managing director of global as- 
set management at Chase Manhattan 
Bank. The Hong Kong stock market fell 
because of short-term pressure on its 

currency, and that reflected already-dis- 
closed economic weaknesses elsewhere 
in Southeast Asia. 

Those problems, “as they now stand 
and as we understand them,” said 
Lawrence Kreicher, chief economist 
and director of global bond research at 
Alliance Capital Management L.P„ 
“are going to have very little impact on 
the global economy. ” 

Several Wall Sired: analysts estimat- 
ed that the loss of wealth in Southeast 
Asia would knock about half a per- 
centage point off U.S. economic growth 
next year, but that would leave growth 
of about 2 percent u> 2.75 percent, a 
comfortable pace for a developed econ- 
omy that has been expanding for nearly 
seven years. 

Stockholders, however, were not en- 
tirely unscathed by last week's events. 

The Dow industrials, at 7,442.08. have 
fallen nearly ! 0 percent from their Aug. 
6 record of 8,259.31. Investors who 
went for blue-chips this year have 
showed some of the smallest gains — 15 
percent as measured by the Dow. com- 
pared with 23 percent for the 500 big 
companies in the Standard & Poor’s 500 
index and a similar advance in the Nas- 
composite index. 

till, when measured in dollars. 
American investors have done pretty 
well tiiis year by keeping their money mi 
W all Street. Even the Dow's return is 
high by historical standards, which have 
seen large-company U.S. stocks grow by 
an annual average of about 1 1 percent. 

After their currency devaluations, 
many Asian markets provided double- 
digit losses for dollar-based investors, 
who would have seen more than half of 

their money disappear if they had begun 
the year by investing in typical Thai and 
Malaysian issues. 

Even such well-performing markets 
as Britain, Germany and the Nether- 
lands have produced dollar-based re- 
turns below those of the S&P 500, with 
only the main indexes in Switzerland 
and Italy doing better. 

Aggressive investors have seen good 
profits this year in such markets as 
Brazil and Mexico, and stockholders in 
Russia have doubled and even tripled 
their money.-But. as was seen last week, 
those markets are tremendously volatile 
and their countries’ economies not as 
resilient as that of the United States. 

While the market is braced for further 
volatility this week, the consensus view 
is that the worst has passed and that Wall 
Street has overreacted to what is being 

called the "Asian flu.“ On Tuesday, as 
the Dow recovered more than half of 
what it lost the previous day. New York 
resumed its traditional role as the mar- 
ket that sets the semimem for other 
exchanges rather than following the 
lead of sneezes and chills elsewhere, 
according to Mike Gerding, portfolio 
manager for the Founders Worldwide 
Growth and Passport mutual funds 
based in Denver. 

Mr. Gooss of Chase said one reason 
American slocks were commanding high 
prices relative to coiporate earnings, div- 
idends and asset values was that in- 
vestors were willing to pay premiums for 
the stable earnings of U.S. companies. 

With a favorable economic outlook 
supporting Wall Street, investors who 
can identify the best companies should 
be able to look forward to further gains. 

United States: Worrying About Regional Stability 

By Brian Knowlton 

International HeraU Tribune 

WASHINGTON — The Sombeas 
Asian turmoil will create benefits forU.S 
consumers and opportunities for saw 
investors, but it raises stark concern 
about political stability in the region, th 

There should be some easing of price: 
especially on low-aid electronics, re 
during U.S. inflationary pressures, th 
analysts said. Earnin gs of some comps 
nies with extensive Asian presences wi 
suffer, they said, but American hanks ar 
not deeply involved there. 

‘ ‘Cheaper Asian currencies may mm 

gin a l ly help hold down U.S. prices and 
inflation,” said Jonathan Aronson, di- 
rector of the School of International 
Relations at the University of Southern 
California. “Nobody on Main Street 
will be able to identify the reason for 
this, however.” 

Adam Posen, an economist with the 
Institute for International Economics, in 
Washington, agreed: “On balance, the 
effects are going to be relatively smalt- 
All those countries together make up 
just 10 percent of U.S. trade. We get a 
benefit because all the intermediate 
goods we buy, like computer chips, be- 
come cheaper. But whether lower prices 
will be passed on to consumers is hard to 
say, especially with today’s low infla- 

Thailand: Has It All Sunk In? 

BANGKOK — In the Southeast 
Asian financial crisis, Thailand is the 
place where it all began — but analysts 
worry that the government has not yet 
recognized the severity of its situation. 

* ‘They keep astounding me,' * an ana- 
lyst at an international brokerage said. 
‘‘I thought the government would 
muddle through, making the needed re- 
forms.” But the government has still not 
got a grip on the economy, in the as- 
sessment of this analyst and others. 

After a decade of rapid economic 
growth, Thailand floated the baht July 2, 
sparking a currency crisis that ruined 
into a rout of markets worldwide. 

The Thai government’s response has 
sidelined investors and frightened for- 
eign creditors. Thai companies- owe 
creditors abroad an estimated $91.6 bil- 
lion. about $20 billion of which is op for 
renewal by the end of the year. 

“Once creditors lose confidence in an 
economy, and I believe that is the case 
with Thailand, it is important that ele- 
ments of certainty be acquired.” said 
David Proctor, the Thailand country 
manager at Bank of America and pres- 
ident of the Foreign Bankers’ Associ- 
ation. But Thailand has had four finance 
ministers and two permanent secretaries 

of finance in the past 12 months. 

“With political uncertainty like 
changes at die finance minister level, it 
is impossible for creditors to get enough 
details to make decisions,” Mr. Proctor 
said. He added that without quick pas- 
sage of finance-sector reforms, en- 
hanced transparency of the financial 
system to its participants and reduced 
political interference, Thailand would 
not regain creditors’ confidence. 

“There is increasing anxiety that the 
situation is continuing to worsen,” be 

Bat not everyone is a pessimist. An- 
drew Freris, managing director of Bank 
of America’s global capital-markets 
group, predicted that Thailand’s speedy 
rebound would catch people by - sur- 

“Gall it Jane Fonda economics: no 
pain, no gain.” Mr. Freris said. As foe 
owner of foe hardest-hit crarency in 
Asia, Thailand now has a two-year win- 
dow of opportunity to exploit an un- 
dervalued baht as a competitive advan- 
tage, he said. 

“It is a good thing for Thailand that 
international lenders have memories 
shorter than pussycats,” he added. 


tion.” But Geoffrey Fager of foe In- 
stitute of International Finance said he 
did expect' noticeably lowerprices. For 
the consumer, said Mr. Fager, who 
hf>arfc the institute’s Asia department, 
“I can’t see where it’s negative.” 

Jeffrey E. Garten, dean of foe Yale 
School of Management, argues that if the 
downward pressure on prices goes too 
far. it could end op being a negative. 

“Americans will see cheaper-priced 
imports, 20 to 30 percent lower, mir- 
roring the depreciating currencies,” he 
said. “That would have a real dampen- 
ing effect for foe tendency toward in- 

“But - foe closer we get to zero in- 
flation, the more we get into very dan- 
gerous territory in which we can dip into 
deflation. We can win this war on in- 
flation a little too decisively. Slower 
growth, depreciating currencies — that 
is not a place where we want to go.” 

And longer-term worries lurk, be and 
others said, as foe economies of two 
hugely important U.S. trading partners, 
C hina and Japan, are affected. 

“All signs point to fairly substantial 
slowing of economic growth in South- 
east Asia, perhaps by a third from earlier 
projections of 6 to 8 percent growth, and 
delays or cancellation of a lot of big 
capital-intensive projects.” Mr. Garten 
said. “I would not rule out a spillover in 

China ’* 

He said that Chinese economic poli- 
cymakers desperately need to “get out 
from under foe burden of insolvent and 
inefficient state-owned companies’ ’ but 
that the capital they will need to do so 
will be harder to come by because of the 
weakening of foe Hong Kong markets. 

“A monkey wrench has been put into 
foe wheels of reform,” he said. 

James Dad, professor of Southeast 
Asian studies at Georgetown Uni- 
versity. expressed similar concerns. “I 
think there is a vety real risk some of this 
is going to start hitting China,” he said. 
Mr. Clad pointed to heavy overbuilding 
in China and thus “a tremendous ex- 
tension of banking loans to the property 

Mr. Fager, however, said he thought 
foe concerns about China were “a bit 

He said: “If China takes foe right 
steps toward fixing its public-enterprise 
sector, foe finance will follow. I don’t 
believe changes in market conditions 
from year to year will alter their reform 

Mr. Garten also warned of dimmer 
hopes for Japanese recovery. 

“With public spending not forthcom- 
ing,” he said, “and the government 
seeming to have ruled out tax increases, 
the only thing Japan had left was ex- 
ports. and foe balk of those were going 
to Southeast Asia.” 

Several analysts raised concerns about 
Southeast Asia's political stability. 

Mr. Garten said that necessary re- 
forms and adjustments could heighten 
tensions. He predicted a “significant 
rise in political tension in Thailand, 
Malaysia. Indonesia — and China.” 

Mr. Clad said the recent upheavals in 
foe area were already having a “dev- 
astating” impact. “The prospect of se- 
rious manifestations of urban anger and 
distress is very real,” he said. 

Mr. Garten said he expected big di- 
rect investors to see some drops in earn- 
ings but said be expected them to stay in 
foe region because “they’re there for 
the long run. ’ * Some might even transfer 
more production to Asia to take ad- 
vantage of exchange rates, he said. 

Some medium-sized American 
companies that had come expecting the 
Asian economic miracle to last, he said, 
“are going to say. ‘Hey, we made a 
mistake. The boat has sprang a leak.’ ” 

Big mutual-fund investors in Aria 
will become more cynical and quicker 
on their feet, analysts said. 

“While the big funds are forced to 
increase global exposure,” Mr. Garten 
said, “they’ll be quicker to move funds 
in response to political factors." 

. Mr- Clad said the United States had 
been wrong not to take part in setting up 
a stability fund for Malaysia, but he said 
he believed foe lesson had been learned. 

“We are going to be around next time, 
and that is good news.” he said. “It is 
good news both for foe added element of 
bus mess confidence and because, po- 
litically, it will help end foe misappre- 
hension that foe U.S. is in retreat or not 
terribly interested in foe region.” 

Malaysia: No Visible Slowdown 

KUALA LUMPUR — When Malay- 
sia's financial markets began taking daily 
beatings several weeks ago. international 
publications called photographers here 
for pictures of idled construction sites 
and failed companies. The stock mar- 
ket’s plunge had wiped out more than 
$100 billion in wealth, built up over the 
past few years, and the publications 
needed to illustrate the gloom. 

But editors had to settle instead for 
pictures of frantic traders. Despite 
months of financial -market turmoil, 
there was — and still is — scant visual 
evidence of a national economic crisis in 
Malaysia. Department stores are full of 
shoppers, and newspapers are filled with 
job offers. The crisis has yet to reach 
whai many call foe “real” economy. In 
contrast to neighboring Thailand, where 
dozens of finance companies have been 
shuttered and several large companies 
have missed international debt pay- 
ments, in Malaysia the evidence of eco- 
nomic crisis — apart from market in- 
dexes and currency rates — is elusive. 

“The level of discussion about the 
impact on the real economy is still in foe 
numbers,” said Zainal Aznam Yusof, 
director of the Institute of Strategic and 
International Studies in Kuala Lumpur. 

The numbers, so far, basically indicate 

only a slight economic downturn: Ap- 
plications for investment in the man- 
ufacturing secior were down in foe first 
seven months of foe year, fewer people 
have registered cars in recent months, and 
analysts predict that credit growth will 
slow significantly. Overall, however, the 
government expects the economy to 
grow 7 percent nexr year. 

“At foe moment, because we've seen 
a severe downturn in the stock market but 
we haven’t seen any economic downturn 
at this stage, people arc still sitting fairly 
comfortably here,’ ’ said Robert Coombe, 
executive director of Commerce Asset 
Fund Managers in Kuala Lumpur. “But 
this time next year. I’m not sure we’U be 
in the same situation.” 

Even after Malaysia comes to terms 
with foe scope of foe economic down- 
turn, its road to recovery will wind 
through territory it does not control. 

‘ ‘Even if the ringgit improves and the 
Malaysian economy recovers." said 
Mohamed Ariff, executive director of 
the Malaysian Institute of Economic 
Research. * ‘if foe neighboring countries 
do not, it could depress foe state of 
affairs in Malaysia.” With this in mind, 
the government has contributed $1 bil- 
lion to bailout efforts in Thailand and 
Indonesia. —THOMAS FULLER 


Philippines: Much Uncertainty 



Although foe peso has fallen and Ma- 
nila stocks have plunged, sluggish lib- 
eralization and modest growth may yet 
allow foe Philippines to avert financial 
disaster, analysts and economists say. 

Nonetheless, they add, foe Southeast 
Asian economic turmoil will compound 

uncertainties still to be generated by elec- 
tions and foe El Nino weather pattern. 

Drought resulting from Ef Nino is 
expected to shrink fob year’s agricultural 
output, which accounts for about 20 per- 
, cent of foe country’s economic output. 

‘Jw “The economy was just starting to 
■ take off,’* said Alvin Tan, an analyst in 
Manila for ABN AMRO Hoare Govett 
Asia. “It is a shame this regional crisis 
and El Nino had to hit now. ” 

But economic problems are no thing 
new in the Philippines. 

The country went through an eco- 
nomic collapse in the early 1990s wifoa 
balance -of-payments crisis that stilled 
expansion for several years. 

In foe last three years, the economy 
has picked up, peaiang last ^ 
percent growth, which is modest- when 
compared with foe red-hot pace of 
grow* over foe last decade in Malaysia 
and Thailand. 

A severe slowdown in incoming 
money — due to investor fear of foe 

region or political turmoil — risks 
worsening foe Philippines* already 
bleak balance of payments. 

The country had been running a cur- 
rent-account deficit at 4 to 5 percent of 
gross domestic product, which was sus- 
tained by foreign direct investment and 
the rising levels of Philippine stocks. In 
foe year to date, however, portfolio in- 
vestment has plummeted and many sus- 
pect foreign investment has done foe 

Fortunately , the fallen peso has raised 
the value of remittances by overseas 
workers, an important contributor to foe 
economy foal was equivalent to 5 per- 
cent of gross domestic product last 

Politics, many warn, will add another 
dimension to economic instability. 

“Just about everyone is running for 
president right aow,” an economist in 
Manila said. 

At last count. 10 people were vying to 
replace President Fidel Ramos in foe 
May 11 election. Joseph Estrada, an 
action film star and the current vice 
president, is die front-runner. 

Popular among rural voters, Mr. Es- 
trada has admi tted that economic man- 
acement is not his strong suit. 


^Taiwan: Waiting on the Yen 

Like Hong Kong, Taiwan is siamg « 
massive foreign exchange r«erves_ 
more than $90 billion for just 21 million 

^utby comparison with Hong Kong, 
Taiwan has tSTa convent.™* £ 
proach to remaining competinve^t has 
allowed its dollar to 
recent weeks, hoping not to tee aft ns 

export competitiveness u> 
countries that have seen their currencies 
fall more sharply. ^ the 

So far, Taiwan’s n^ eU 

best performers in Asm, has 

the sell-off seen in HongKoS- 

Taiwan dollar, the future S? £t£be- 
ily on the dollar-yen exchange rat^be 

down the value of So ^ 

won. Because South Korea suc i, 

export many offoes^eP^^sud; 

as electronic good* a i w . 

^pressure on the Tm . ^ 

A much lower 
could eventually pressure Chin 

given China’s reliance on direct invest- 
ment from Taiwan companies. 

As for the Taiwan stock market, all 
bets have to take into account foe is- 
land's uneven relationship with C h i na. 
Taiwan has not faced tins year foe kind 
of political tension foal was caused by 
missile tests off foe island in 1996 dur- 
ing Taiwan ’spresidential elections. 

For now, China’s approach is to try to 
persuade Taiwan to rejoin foe mainland. 
Beijing’s leaders have said, foougl^ that 
Taiwan will come back into foe fold — 
by force if necessary. 

Taiwan has sometimes expressed a 
desire to turn itself into more of a re- 
gional financial center to compete with 
Hong Kong as an alternative, lower-cost 

83 AjrolM»Sb«ttle in Hong Kong to 

save foe pegged currency, or a failure by 
Hong Kong to wring its high pnees out 
of. the system, could give Taiwan the 
competitive opening 

Activity on the Hong Kong Stock Exchange, top left, sparks buying and 
selling around the globe, from Wall Street, top right, to Frankfurt. 

Indonesia: Stagflation Ahead 

While Indonesia, with help from the 
International Monetary Fund, has man- 
aged to tine up foreign standby loans 
amounting to at least $38 billion to sta- 
bilize its currency, the price is likely to be 
sharply slower economic growth and 
higher inflation over foe next few years. 

In exchange for the emergency fund- 
ing package announced Friday, Jakarta 
must impose politically sensitive aus- 
terity measures to cut spending and raise 
revenue, economists said Sunday. 

Rizal Ramli, director of the Econir 
Advisory Group of consultants in 
Jakarta, said tfet Indonesia — foe 
world’s fourth most populous nation — 
was entering a period of stagflation, 
marked by low growth and high inflation. 
This, he 'said, could lead to increased 
social and political unrest ahead of In- 
donesia’s presidential election and the 
formation of a new cabinet in March. 

Even before the IMF-brokered deal 
was announced, many analysts were 
forecasting that the 35 percent fall in the 
value of foe rupiah against foe U.S. 

dollar so far this year would put a sharp 
brake on Indonesia’s growth. 

“Substantial fiscal and monetary 
tightening will be required to ensure 
currency and. ultimately, macroeco- 
nomic stability,” UBS Securities 
(Singapore) Pte., a unit of Switzerland’s 
UBS financial services group, wrote in a 
recent report on Indonesia. 

Finance Minister Mar’ ie Muhammad 
conceded Friday that economic growth 
in Indonesia — which has averaged 
more than 7 percent in recent years — 
would fall in the next two years. He did 
not say by how much, but he predicted 
that growth would rise again to around 7 
percent at the end of the decade. 

Mr. Mar’ie said the aim of the sta- 
bilization program was to keep inflation, 
now at around 6.3 percent , according to 
official figures, in single digits. 

Many economisis, however, expect 
growth in Indonesia to drop below 5 
percent next year and inflation to rise to 
well over 10 percent. 


China: Too Strong a Yuan 

As foe currencies of developing and 
newly industrialized countries across 
East Asia came tumbling down in recent 
months, one remained immovable: the 
Chinese yuan. 

It was so immovable, in fact, that some 
Chinese officials expressed concern that 
unless Beijing decided to devalue as well, 
foe countiy’s exports would face severe 
competition from Thailand, Indonesia, 
South Korea, foe Philippines and Malay- 
sia, whose products have become cheap- 
er by as much as 50 percent. 

“The devaluation of regional curren- 
cies will greatly affect our exports,” said 
Ma Yu, a researcher at foe Institute of 
International Economics under China’s 
Foreign Trade Ministry, according to a 
Bloomberg News report from Beijing. 
“We’ll also see a reduction in foreign 
investment flows into China.” 

At stake is China’s ability to keep its 
economy growing fast enough to 
provide jobs for the millions likely to be 
thrown out of work as the government 
closes unprofitable companies owned 
by the state. 

China's annual growth rate of 9.5 
percent after inflation in foe first three 
quarters of 1997 becomes a less im- 
pressive 5.1 percent when external de- 

mand is stripped out. according to for- 
eign economists. 

Growth in China, Asia's second- 
hugest economy after Japan, has been 
buttressed by a stunning export perfor- 
mance. Exports in the first nine months 
of 1997 were up nearly 24 percenr. Yield- 
ing a trade surplus of $30.6 billion. 

But William Ooi, an economist in foe 
Hong Kong office of J.P, Morgan, said 
China’s export momentum would be 
increasingly difficult to sustain, espe- 
cially because demand from the coun- 
try’s major industrialized partners — 
the United States, Europe and Japan — 
was likely to moderate. 

“Besides, further gains in China’s 
trade surplus would be poorly received 
by the rest of the world, especially gains 
in the huge gap with the U.S..” he said. 

Beijing’s policymakers are in a bind. 
China’s central bank maintains the 
yuan’s exchange rate within a narrow 
range of just under 8.30 to the dollar. 
But because it is convertible only for 
trade and for profit transfers, the yuan is 
not exposed to the kind of massive flows 
of capital that have sent currencies else- 
where in East and Southeast Asia spiral- 
ing downward. 





PAGE 13 

s Brokers Try 
To Make 



Accounts to Be Adjusted 

After Trading Snags 

By Virginia Munger Kahn 

New York Timor Sen ice 

NEW YORK — Investors in U.S. 

stocks apparently wiU not end up short- 

r changed because of problems that stock- 
• trading systems encountered handling 
the huge surge in volume last week. 

Mci i ill Lynch & Co. has said it will 
spend up to $10 million making in- 
vestors whole, for trades that were not 
executed promptly last week, and Fi- 
delity Brokerage Services has said that 
n it, too, will adjust customer accounts^ 
* paying out up to $1 million because of 
problems with trades. 

Smith Barney Inc., Prudential Secu- 
rities Jnc. and Charles Schwab & Co. 
have made similar commitments to cus- 
tomers who placed orders that were 
delayed in execution last week. Most 
problems arose when buy orders on 
i. Tuesday morning, the day after the Dow 
f Jones industrial average dropped 554 
points, were not executed until after 
prices had risen. 

Payments like these are nothing new, 
Merrill Lynch and Fidelity said. "It's 
been a consistentpolicy at Merrill Lynch 
that if a Merrill client is disadvantaged by 
a delay, the firm will make him whole,” 
said Bobbie Collins, a spokeswoman. 

But investors who could not get 
through to Charles Schwab brokers last 
week will have to content themselves in 
the future with a new policy, adopted last 
week. When waiting times on the tele- 
phone or electronic systems exceed five 
minutes during “extreme market ac- 
tivity,” the company said, commissions 
up to $500 wiU be waived on trades that 
are then executed at Schwab offices, 
h Nor will Fidelity provide relief to 
' investors who picked up their news- 
papers on Wednesday morning, think- 
ing the prices repented on several funds 
were the ones at which their Tuesday 
trades were executed. In fact, the correct 
prices were higher. 

Investors not satisfied. with how stock 
transactions were handled last week 
should call the company in question and 
ask whether it is making amends. If not. 
an investor should write the firm, said 
Barbara Roper, director of investor pro- 
tection for the Consumer Federation of 
America. The lettersbould describe what 
would constitute appropriate resolution. 

If the firm does not respond satis- 
factorily, investors should consider go- 
ing to arbitration, which is generally 
handled by die National Association of 
Securities Dealers in Washington. 

Individuals can also complain direct- 
ly to die association, said Michael Jones, 
vice president in the association’s Of- 
fice of Individual Investor Services. 

Nancy Smith, a director at the Se- 
curities and Exchange Commission, said 
v, investors disputing fund transactions 
Q should complain to the fund company 
■ and then, if not satisfied, to the SEC. 

Fmcfing bargain stocks has been tough for a few years, but the market’s drubbing in recent weeks has given value investors a 
S&mmer of hope. Here are some companies that the managers of three value-oriented mutual funds consider overpriced but 
otherwise great When the price is right— the target price, below— they may end up on the manager's buy fist. 

Shelby davis Selected American (Lame companies) 



Target price 

Friday close 

Applied Materials AMAT 

Demand for semiconductor equipment should grow 

, 15 to 20 percent annually. 

S 25 

S 33375 

Warner Lambert WLA 

Its drugs for diabetes and high cholesterol have many 
years of patent protection. 

SI 20 

SI 43375 

RICHARD Weiss Strong Opportunity (Medium companies) 

Sigma- Aldrich SIAL Its sales to laboratories have operating margins of 21%. 

CNF Transportation CNF This shipping company just signed a $1.7 MBon contract 

with the U.S. Postal Service. 

STEVEN REID Oafcmarfc Small Cap 

Tootsie Roll Industries TR It has recognizable brands, no debt and may be a takeover cancfidate. 
Peoples Bank of This local bank has profitable crerfit-card operations ax! 

Bridgeport (Conn.) PBCT an expanding supermarket presence. 

Sauice: BtoomSerg Financial Martels (dosing stock priced) 

$ 35.125 

$ 44.625 

S 56.75 

$ 32.75 

Bargain-Hunters Begin to See Green 

By Anne Tergesen 

Noe York Tones Sen-ice 

It has been a tough year for value 
investors — the bargain-hunters whose 
Search for cheap stocks has been frus- 
trated by the climb of the Dow Jones 
industrial average. As die bull market 
reached new heights, thrift-minded fund 
managers carried more cash than they 
wanted and even adjusted their defin- 
itions of a good buy. 

“Everybody bad to stretch their valu- 
ation parameters upward,” said Shelby 
Davis, chief investment officer of Davis 
Selected Advisors. “Where we used to 
think we could find stocks at 10 to 12 
times earnings, we’ve been in tire 13 to 
15 range.” 

But with the stock market’s dizzying 
sell-off and partial rebound last week, 
and a close Friday that left it more than 
800 points below its August peak, value 
investors can now dare to dream. What 
if the market continues to slide? WiU the 

overpriced stocks of otherwise great 
companies come within reach? 

Three mutual-fund managers — one 
specializing in large companies, one in 
medium companies and one in small 
ones — were asked what stocks they 


most wanted to see tumble. Besides 
identifying some promising prospects, 
their answers show how these investors 
skirt what many call this bull market’s 
fatal flaw: overvaluation. 

In a pullback, Mr. Davis said, he 
would buy several stocks for his large- 
company funds. Selected American and 
Davis New York Venture. One wish-list 
company is Applied Materials Inc., 
which makes equipment for semicon- 
ductor manufacturers. 

The company should benefit greatly 
from expected annual growth of 15 per- 
cent to 20 percent in demand for its 
industry’s machines, Mr. Davis said. 

Jakarta Heeds IMF 
And Shuts 16 Banks 

With silicon chips — its customers' end 
product — finding their way into 
everything from computers to cars, the 
large equipment maker can only be- 
come more attractive, he said. 

Applied Materials stands our even 
within its booming field. It is the largest 
player in a consolidating industry, and 
Its annual earnings growth rate, 20 per- 
cent to 25 percent, well exceeds the 
industry average. 

But for the Davis funds to bite, the 
stock of Applied Materials must fall. 
One of Mr. Davis's rales of thumb: The 
ratio of a stock price to the estimated 
earnings per share next year must be 
equal to or less than the company's 
expected percentage growth in earnings 
in 1998. 

Under this principle, the stock of Ap- 
plied Materials will have to fall to $25 
from its current $33,375 to interest Mr. 

See STOCKS, Page 15 

c,nnpi!rti !n Cm St£Fnm> r*y\Drtn 

JAKARTA — Indonesia will an- 
nounce details Monday of deregulation 
measures aimed at bolstering the econ- 
omy after the Finance Ministry closed 
16 small banks over the weekend in a 
first step to carry out an IMF-backed 
economic reform program. 

J. Soedradjat Djiwandono. governor 
of Bank Indonesia, said he hoped the 
closing of the banks, which the gov- 
ernment has been working on for some 
time, would restore confidence in the 
country's economy. Indonesia has been 
rocked by soaring interest rates and a 35 
percent decline of the rupiah this year. 

The banking and financial sectors are 
key areas for reform under a multi- 
billion dollar assistance package agreed 
to last week with the International Mon- 
etary Fund, die World Bank, the Asian 
Development Bank and individual 

Finance Minister Mar'ie Muhammad 
said Saturday that the banks were “in- 
solvent to the point of endangering busi- 
ness continuity, disturbing the overall 
banking system and harming the in- 
terests of society. ’ ’ 

Banking sources said several of the 
banks were associated with politically 
well-connected business figures, in- 
cluding members of President Suharto's 
own family. 

Mr. Mar'ie said account holders 
would be reimbursed through state 
banks of amounts as high as 20 million 
rupiah ($5,495) per account, covering 
93.7 percent of depositors. 

No figures were given on the amount 
of deposits or the indebtedness of the 

Anticipating a possible run on banks, 
the finance minister also appealed "to all 
members of society to remain calm.” 

“It should be emphasized that all 
banks that are nor liquidated will cany 
out their operation as usual.” he said. 

A spokesman for die Jakarta police 
was quoted in the Jakarta Post as saying 
that police were on standby to prevent 
any disputes from getting out oi hand. 

Government sources said reform 

Policeman guarding a closed bank. 

measures to be announced Monday in- 
cluded details of import tariff reduc- 
tions, export incentives and proposals to 
open the country's distribution and 
wholesale markets to foreign companies 
manufacturing in Indonesia. 

In return for the international aid, 
Indonesia also said it would scrap 
monopolies held by the government's 
Bureau of Logistics on food items such 
as wheat, garlic and flour, end controls 
on cement prices and agree to a three- 
year “tight” monitoring of its economy 
by the IMF. 

Analysts, investors and economists, 
however, were not immediately im- 
pressed by the closing of the 16 banks. 

Stephen Rogers, head of research for 
UBS Securities, said the honks that were 
closed were “very small” and that it 
was “questionable whether some of 
them would have survived anyway.” 

(Reuters. Bloomberg} 

Despite Global Financial Uncertainty, the Dollar Finds Few Takers 

By. Carl Gewirtz 

International Herald Tribune 

PARIS — In a week marked by glob- 
al flight to financial havens — notably 
U.S. government bonds — the dollar 
stood out only because it attracted so 
little interest. 

Over the week, the dollar slipped 23 
percent against the Deutsche mark, fin- 
ishing at 1.7250 DM. Against the yen, 
the dollar slipped 1 .3 percent, to 120.40 

Running an annual trade deficit of 
s<xne $200 bilhc«and another oniflow of 
some $20 billion servicing the U.S. debt 
held by nonresidents, the United States 
ranks as the largest importer of foreign 
capital needed to balance its international 

accounts. As such, said Paul Meggyesi of 
Deutsche Morgan Grenfell in London, it 
is “clearly more exposed to die con- 
traction in capita] flows which typically 
accompany financ ial market crisis.” 

Moreover, the foreign-exchange 
crisis in Asia, which has spread to Latin 
America, has central banks selling dol- 
lars to try to thwart their currencies’ 
weakness, forcing them to liquidate dol- 
lar holdings. 

Federal Reserve custody holdings of 
Treasury se curities for foreign central 
banks have dropped $22.4 billion over 
die past two months, declining in just 
the past two weeks by a whopping $14.7 

“This is clearly of significance for. 
both U.S. financial markets and the dol- 

lar,” Mr. Meggyesi said. In addition, 
die dollar market's enormous liquidity 
— usually its strong point — can be a 
problem. Avinash Persaud at JJP. Mor- 
gan & Co. in London said the dollar had 
been sold most heavily when trading on 
the New York Stock Exchange was tem- 
porarily halted twice Monday. 

“The inability to sell stocks led to an 
increase in dollar sales, almost as a 
hedge against further declines in stock 
prices,” he saicL 

Similarly, he said, a sell-off in the 
Brazilian stock market led to a surge of 
dollar sales on the expectation that the 
, spread of tiie crisis to Latin America 
would be damaging to the United States, 
the largest trading partner of the re- 

Further weighing on the dollar is the 
widespread expectation that the Federal 
Reserve Board will not dare to raise 
U.S. interest rates during the present 
turmoil, whereas Germany — being less 
exposed than the United States is to 
developments in Asia or Latin America 
— might continue to snuggle its rates 

At the same time, however, according 
to Neil MacKinnon of Citibank in Lon- 
don, there is “no big appetite” to sell 
the dollar shore “The U.S. economy is 
in good shape,” he said, "and the fun- 
damentals are good ” 

Trading last week showed strong sup- 
port for the dollar when it dipped briefly 
below 1.7100 DM. 

Analysts such as Paul Cheitkow at 

UBS Ltd. in London, who predict an 
early Fed tightening but no quick move 
by the Bundesbank, say the dollar is 
capable of a final bounce toward 1.80 

Others, such as Mr. Persaud. who 
expect U.S. interest rates to bold steady 
predict a drop. 

“The dollar's highs are behind us," 
Mr. Persaud said 

"A downtrend is under way that will 
cany the dollar to 1.60 DM in a year’s 

The yen, virtually all agree, should be 
weaker, bm it is being supported by the 
global maiket turmoil, which is inhib- 
iting Japanese investment abroad and 
probably encouraging some short-term 
repatriation of capital. 


IBM Moves to Get a Jump on Network Computing Crawford * S Choice 

By Richard Melville 


N ew york ■ — 

Seeking to create a 
bigger market for 
its network com- 
* puters. International Business 
Machines Corp. will offer 
competitors the software it 
uses to link network stations 
to servers. 

IBM's move is a bid to 
establish an industry standard 
and avoid repeating costly 
mistakes it made in the past 
when it favored its own, pro- 
prietary technology in per- 
sonal computers. 

“Unlike the old IBM, 
we’re not on a track to try to 
comer the market,’ ’ said Bob 

Dies, general manager of 
IBM’s network-computer di- 

“Instead, our goal is to 
make the functionality we 
already have fairly ubiquit- 
ous,” be said 

Several companies, includ- 
ing Sun Microsystems Inc. and 
Oracle Corp., have been vocal 
advocates of the network com- 
puter, or NC, approach. If ac- 
cepted, the technology could 
mean competition for Mi- 
crosoft Corp.'s Windows soft- 
ware and Intel Corp.’s micro- 
processor technology. 

Mr. Dies said IBM would 

pursue two approaches. In 
some cases it will offer hs 
software to standards boards, 
where, if accepted, it would 


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cases, IBM will license ft. 

“We’ll turn major pieces 
of it ova to standards boards, 
and there are things down the 
road we might overly invest in 
which I would sell/’ he said. 
“Some people will be more 
than willing to pay us for ft. It 
sure bears trying to write ft.” 

Industry analysts have es- 
timated drat IBM could ship 
up to 100,000 network* sta- 
tions in 1997. a small number 
compared with personal- 
computer sales but a consid- 
erable head start in the bud- 
ding universe of NCs. 

The transition to NCs is ex- 
pected to be slow. A study by 
Gartner Group Inc., a market- 
research firm, said NCs were 
likely to co-exist with person- 
al computers for some time. 

Users of a network com- 
puter — or network station, as 

IBM calls its version — access 
applications and Hwiyi thro ugh 
a small device on their desks. 

The approach is also re- 
ferred to as “thin client,” be- 
cause users’ machines do not 
store operating-system soft- 
ware, applications or other 
data. IBM's current model 
weighs less than a pound and 
a half (600 grains), excluding 
the keyboard and monitor. 

Upgrades and other 
changes to the system will all 
take place within the server, 
.which has led some analysts 
to estimate that NCs would 
generate savings of up to 40 
percent compared with per- 
sonal computers. 

Microsoft and other 
companies have championed 
an alternate model, called 
“NetPC,” which relies on 
stripped-down personal com- 
puters administered by net- 
works. IBM has already 

shelved earlier plans to de- 
velop NetPC models. 

Partners of Microsoft also 
plan eventually to deliver 
Windows-temunals, a setup 
that will operate under a mod- 
ified version of the Windows 
operating system. 

IBM. which also has a 
multi billion dollar personal- 
computer business, has been 
nearly invisible in the NC- 
NetPC debate, but its net- 
work-computing division 
stands to benefit greatly if the 
NC approach succeeds. 

A new model of IBM’s net- 
work station, which makes 
more complete use of code 
written in Sun's Java lan- 
guage, is slated for release 
this year. 

Internet address: 

• Recent technology articles: 
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Seoul Chips Away at Trade Deficit 

Bloomberg News 

SEOUL — South Korea’s trade deficit 
narrowed 98.8 percent in October from a year 
earlier to $21 million, as a surge in overseas 
sales of semiconductors led to the highest 
monthly exports in the nation’s history. 

_ Exports jumped 62 percent from a year 
earlier to an all-time high of $12-58 billion, 
led by semiconductors, petrochemicals, com- 
puters and textiles, tire Ministry of Finance 
and Economy said Saturday. Imports fell 7 
percent from a year earlier to $1 2.6 billion. 

In the first lOmonihsofthis year, the deficit 
totaled $10.41 billion, down from $17.29 bil- 
lion in the same period of 1996. 

Semiconductor exports in October jumped 
27.4 percent, to $1 .67 billion. The surge came 
as South Korean computer chip ■ makers 
switched to more profitable 64-megabit dy- 
namic random-access memory chips from 16- 
megabit chips. The prices of 1 6- megabit chips 
dropped below $7 apiece In the fourth quarter 
from $9.3 in the second quaner. 

Exports of 64-megabit chips, the most 

dense memory chips in commercial use, in- 
creased to $517 million in the third quarter, 
from $357 million in the second quarter and 
$221 million in the fast quarter, a ministry 
official said. 

Semiconductors are South Korea’s largest 
export item, accounting for 14 percent of total 
exports. The drop in chip prices had led to a 
193 percent drop in exports last year, fol- 
lowing a 373 percem surge from 1990 to 

South Korean chipmakeis plan to increase 
the portion of 64-megabit chips to 50 percent 
of total semiconductor exports, from 30 per- 
cent in the first half of the year, said Lee Dong 
Ho. an economist at Daewoo Economic Re- 
search Institute. 

Steel exports rose 8-8 percent in the first 20 
days to $269 million as a result of stable 
export prices. Hot-coil prices rose to $321 a 
ton in die third quarter from $319 in the 
second quarter. Prices of cold-rolled steel 
sheets edged up to $439 a ton from $438. the 
ministry official said- 

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Press. Bktombrniond Reuters 

Will Asian Crisis Turn Global? Analysts Look to Hong Kong for an Answer * 

By Carl Gewirtz 

International Herald Tribune 

PARIS — Inevitably in financial 
markets, the byproduct of risk aversion 
is contagion. What started in May as a 
banking crisis in Thailand and over the 
□ext four months spread to- become a 
currency crisis in Southeast Asia is now 
threatening to become a global financial 
crisis as investors everywhere run for 

The flight from risk even has a logic. 
By whatever yardstick it is measured — 
the rise in yields on emerging-market 
debt compared with U.S. government 
bonds, or price/earnings ratios on stocks 
— the price investors have been willing 
to pay for risk has declined sharply. 

- In just one week, a year's worth of 
spread compression on dollar issues by 
emerging-market borrowers was 
erased. The J.P. Morgan index, which 

measures the spread between interest 
rates on emerging-market debt and U.S. 
Treasury rates, soared at one point to 
825, compared with 332 a week earlier, 
and ended the week at 597. Traders 
reported panic selling and chaotic mar- 
ket conditions. 

The big uncertainty is whether this 
repricing of risk, which last- week even 
had Wall Street shuddering, will occur 
with such violence that it destabilizes 
financial markets or whether it will pro- 
ceed in a way that avoids the worst 
negative effects. ' 

The answer to that question, in the 
view of at least two leading analysts, 
depends on Hong Kong and whether its 
dollar re mains pegged to the U.S. cur- 
rency or is devalued. . 

But beyond this initial common 
point, views diverge totally. 

Patrick Artus at Caisse des Depots & 
Consignations, France’s leading insti- 

tutional investor, argues that only a de- 
valuation of Hong Kong’s dollar can 
restore stability to its stock market and 
put an end to the volatility that is in- 
fecting global markets. 

But John Lipsky 
at Chase Manhattan 
Bank in New York 
argues that it is es- 
sential for the Hong 
Kong dollar to re- 
main pegged at 7.80 
to the U.S. dollar to 
prevent a new round 
of competitive de- 
valuations from destabilizing the region 
and, ultimately, global markets. 

Paul Chertkow, a London-based ana- 
lyst for Union Bank of Switzerland, 
sides with Mr. Lipsky. "Restoration of 
confidence in the Hong Kong dollar will 
reduce pressure on other emerging mar- 
ket currencies,” he said. 

The territory’s currency 
and its link to the U.S. 
dollar have become the 
focal point of the issue. 

Most Active International Bonds 

The 250 most active international bonds traded 
through the Euroctear system tor the week end- 
ing Oct 31 . Prices st^jpfied by TeJekurs. 

Rnfc Name 

Cpn Maturity Price Yield 

Austrian Schilling 

199 Austria 

5* 07/15/07 99-8000 5.6400 

British Pound 

138 Fin ResM Haus 11.12609/3050 1435487 7.7500 

204 Abbey National 6 0*1*99 97.7500 6.1400 

652 05/30/00 97-2233 £.8100 

7 0407/02 1015430 6.9100 

420 02/14/M 965750 65000 

6ft 0407/02 995021 65900 

212 Freddie Mac 
21 9 Britain 
224 EBRD 
235 Faratie Mae 

Canadian Dollar 

221 Canada 

716 12/01/03 1175100 6.7100 

Danish Krone 

11 Demnarfc 
14 Denmark 
16 Denmark 
27 Denmark 
31 Denmark 
39 Denmark 
48 Denmark 
50 Denmark 
52 Denmark 
54 Denmark 
117 Denmark 
124 Denmark 
145 Reolkredit 
T81 Real Krerflt 
190 Denmark Tbllls 


11/1 Q/24 

zero 02/02/98 



































Rnfc Name 


96 Germany 

97 Treuhand 

98 Germany 
-T02 Germany 

108 Germany 

109 Treuhand 

1 1 0 Germany 

111 Germany 
116 Argentina 

118 Germany 

119 Treuhand 

120 Germany 
125 Germany 
127 Germany 
131 Germany 
139 Germany 
155 Germany 

164 Germany 

165 Treu hand 

169 Germany Tbllls 

195 Germany 

196 Germany 
214 Hessen Land 
230 Germany 
231 Germany 
233 Bank Austria 
240 Can Credit Card 
247 Germany 

Cpn Maturity Price Yield Rnfc None 

Cpn Maturity Price Yield 

516 10/24/07 
691 02/24/99 

5 01/14/99 
616 07/15/03 
616 03/15/00 
8% 05/22/00 
546 09/24/98 
616 01/02/99 
536 02/22/99 
5Vk 11/21/00 

8 10/30/09 
634 07/15/04 
6tt 06/25/98 
7 12/22/97 

5W 02/21/01 
744 02/21/00 

m 01/20/00 

6 02/20/93 

5 12/17/98 
816 0*21/00 
646 01/20/98 

6 11/12/03 
zero 01/16/98 
S4& 05/28/99 
61ft 05/2*99 
5ft 01/3QAW 
646 01/2*98 
5fc 10/20/98 
546 10/23/07 
546 08/15/01 
6U 02/2*98 

10] 4400 










Japanese Yen 

229 world Bank 
232 EIB 

Spanish Peseta 

191 Spain 

Swedish Krona 

100 Sweeten 
104 Sweden 1037 
146 Sweden 
166 Sweden 1036 
193 Sweden 

71 01/21/99 1067920 703000 
8 0*1*07 1114820 7.1800 
6 02/09/0 S 984530 65800 
1016 05/05/00 1107620 95500 
51* 04/12/02 985)40 55800 

U.S. Dollar 

Dutch Guilder 

Deutsche Marie 

1 Germany 

3 Germany 

4 Germany 
7 Germany 

10 Germany 
13 Germany 
15 Germany 









20 Bundasobllgation 4ft 

21 Treuhand 

22 Germany 

24 Treuhand 

25 Treuhand 

26 Germany 

28 Germany 

29 Germany 

30 Germany 
33 Germany 
35 Treuhand 

37 Germany 94 

38 Treuhand 

40 Germany 

41 Germany 

42 Treuhand 

43 Treuhand 

44 Germany 

45 Germany 

46 Germany Tbllls 
49 Germany 

51 Germany 
53 Germany 
57 Germany 
58 Germany 
60 Germany 

62 Germany 

63 Germany 

64 Germany 

65 Treuhand 

66 Treuhand 

67 Germany 

68 Germany 

70 Germany 

71 Treuhand 

74 Germany 

75 Germany 

77 Germany 

78 Germany 

81 Germany 

82 Germany 
84 Germany 
86 Germany 

89 Trcuhcnd 

90 Germany SP 

91 Treuhand 

92 Germany 



























































12 / 02/02 






















02 / 2*01 

01 / 1*00 




















103.1 BOO 






541 00 


55 Netherlands 
87 Netherlands 

105 Netherlands 

106 Netherlands 

107 Netherlands 
129 Netherlands 
133 Netherlands 

135 Netherlands 

136 Netherlands 

137 Netherlands 
160 Netherlands 
168 Netherlands 

179 Netherlands 

180 Netherlands 
182 Netherlands 
185 Netherlands 
197 Netherlands 
203 Netherlands 
206 Nethertaids 
211 Netherlands 
21 7 Netherlands 
226 Netherlands 

243 Netherlands 

244 Netherlands 
246 Netherlands SP 
250 Netherlands 

6ft 07/15/98 
5ft 02/1*07 
9 01/15/01 

8ft 03/1*01 
7ft 01/1*23 
7ft 04/1*10 
Aft 04/1*03 
8ft 0*15/02 
7ft 0*01/05 
7ft 1*01/04 
Bft 02/15/02 
zero 01/15/23 
6ft 10(01/98 













































79 France OAT 
103 France OAT 
134 Fiance BTAN 
177 France BTAN 
184 Britain 
194 Britain T-note 
200 France OAT 
213 Spain 
215 France BTAN 
227 Front* OAT 






6 - 

































Finnish Markka 

220 Finland 

7ft 04/18/06 1094836 66100 

French Franc 

132 France OAT 5ft 

152 France BTAN 4ft 

153 France BTAN 4ft 
158 FranceOAT 5ft 
■162 France OAT SP zero 
an France btan 4ft 
202 France OAT Aft 
234 France OAT SP zero 

239 France BTAN 
241 France OAT 









01 / 12/00 






















2 Brazil Cap S.L 4ft 

5 Argentina par L ,5ft 

6 Brazil 10ft 

8 Brazfl L FRN 6<ttt 

9 Mexico lift 

12 Argentina 9ft 
17 Argentina FRN 6V* 
19 Venezuela 9Ui 
23 Argentina lift 
32 Brazil FRN 6<Vit 
34 Brazil S.L FRN Aft 
36 Russia 10 

47 Brazil par 23 5ft 
56 Venezuela FRN 6ft 
59 Bulgaria FRN 6Vu 
61 Brazil S4J FRN ffVu 
69 Mexico par FRN 6ft 

72 Bulgaria FRN 6*te 

73 Brazil 8ft 

76 Venezuela par A Aft 
83 Brazil S 1. FRN 6ft 
85 Mexico 9ft 

88 Roly Aft 

93 Mexico 6ft 

95 Argentina FRN Aft 
99 EIB 6ft 

101 Ecuador FRN 3ft 

112 Poland FRN 6Vu 

11 3 Ecuador par 3ft 

115 Canada 6ft 

121 Mexico lift 

122 Mydfd FRN 6Vtf 

123ADB 6ft 

126 Poland Inter 4 
128 Peoples China 6ft 
130 Canada 6ft 

140 Brazil 6 

142 SEK 601 

143 CADES zero 

147 Korea Dev Bank 7W 
148IADB 6ft 

149 Argentina Bft 

150 Ecuador FRN 6*u 

151 Bulgaria 2ft 

■ 156 Mexico D FRN 6<ft* 

157 Brazil L FRN 6Vu 

159 Mexico C FRN 682 

161 Argentina FRN 5456 
163 Banctrire FRN 5519 

167 Russia 9ft 

170 Mexico B FRN 6836 

171 Kellogg 6ft 

172MmdCOA FRN 6693 

173 Coresiates FRN 5431 

174 Tatnefl Fin 9 

175 Peru 3ft 

176 Peru Pdt 4 

17B Mexico FRN 6977 
183 Panama 8ft 

186 Finland 7 ft 

187 Argentina FRN 5456 

188 Brazil Cbond S.L 4ft 

1 89 Fst Chicago Fm 5419 
192 Bayertsche LB Aft 
198 Cammen FRN 5ft 
205 Philippines Fix 8ft 

207 Quebec- 5ft 

208 Argentina 11 

210 Panama 3ft 
216 Canada FRN 5ft 
218 SEK 6ft 

222 Poland par 3 

223 Un Bk Nar FRN 5ft 

Irish Punt 

144 Ireland 

Aft 04/01/99 101.1288 61600 

Italian Lira 

209 Italy 

6ft 07/D1/Q7 1044000 64700 

225 TV A 1995a 
228MBL Inti Fin 
2365ulHe Mae 


238 New Zealand 
242 Pstronos 
245 Italy FRN 
248 Panama FRN 










0*15/14 965159 44600 
03/31/23 71-5000 74900 
05/15/27 884839114900 
0*1*06 84X000 7.9000 
05/15/26 1124750 104300 
09/19/27 904355 104300 
0*29/05 868800 7J000 
09/1*27 860000 1 0-7500 
01/01/01 944667 74000 
04/15/12 794502 8X500 
0*2*07 984811 10.1100 
0*15/24 664333 7.9100 
12/1*07 85X776 7.9000 
07/28/11 75.0000 69200 
0*1*24 854800 74300 
12/31/19 754786 84400 
07/2*24 794000 8X700 
11/0*01 97.0461 9.1500 
03/31/20 860000 74400 
0*15/09 774000 84700 
01/15/07 99-5557 9.9200 
09/27/231004250 68300 
12/31/19 784667 7.9500 
0*31/23 865000 61400 
1*2*02 1004115 61100 
02/28/15 704700 44200 
1*27/24 93.9357 7.1200 
00/2*25 50-5000 69300 
07/1*02 1005923 64900 
09/15/16 1105000 104900 
09/09/07 824253 61200 
1*2*021004500 64300 
1*27/14 860000 44500 
1*2*02 984750 67000 
0*2*061034333 65000 
09/1*13 B04000 75000 
0*19/00 100.1250 60000 
07/1Q/98 964701 68900 
0*1*06 91.1764 7.9500 
10/22/07 101.1250 64000 
12/2*03 968998 68300 
02/2*25 794022 84800 
07/28/12 595326 3J800 
12/28/19 874671 7.7500 
0*154)6 884748 75200 
12/31/19 924966 7X100 
04/01/01 1054992 63400 
1*0*04 994400 54400 
1 1/27/0 1 95X659 94900 
12/31/19 894024 74500 
08/0*01 100.1250 61200 
12/31/19 905000 74900 
1*29/02 994615 68400 
1*29/02 964000 94800 
03/07/17 554271 69100 
03/07/17 62.1583 64400 
0*27/02 964500 74300 
09/3*27 884205 9.9900 
07/2*04 109.1250 74200 
09/01/02 109.0000 5.1800 
0*1*14 97.1036 66300 
0*23/32 99.7000 54400 
0*25/07 102.1250 64900 
01/29/01 994708 54400 
10/07/16 904000 9.7200 
0*27/98 963544 54100 
10/09/06 1063124105500 
07/17/14 70.6250 54100 
02/1*99 985337 55800 
1*02/00 1004855 6.1100 
10/27/24 560000 61700 
1*1*99 994600 5J600 
06/15/05 1004750 63200 
11/3*02 1003006 2.9900 
08/02/99 97.6250 66100 
12/10/01 995200 55600 
12/2*97 985801 9J700 
1 OH 8/06 935571 74200 
07/26/99 1004500 54600 
07/17/16 81.9468 44800 
06/1*071024270 67000 

The Week Aheads World Economic Calendar, Nov. 3-7 

A schedule al Has work's economic ana Gnoncial events. eempdad far the tawnattwa/ HferaW Tribune by Bkxxnbarg Business News. 


Expected Chiang Mai, Thailand: Texaco Ex- 
Tms Week ploration (Thailand) H Ltd. sponsors 
Third Regional Petroleum Industry 
Environment, Health and Safety 
Conference. Tuesday to Friday. 
Manila: President Fidel Ramos 
speaks at El Nino Water Summit. 
Thursday to Sunday. 


Prague: Revised estimates of bask: 
macroeconomic indicators for this 
year and next year. 


Chicago: Futures and Options Ex- 
po '97 conference. Speakers in- 
clude Michael Moskow, president of 
Federal Reserve Bank of Chicago. 
Earnings expected: Aetna Inc., Eq- 
uitable Cos. 

Monday Bangkok: October consumer price 
Nov. 3 index; Phatra Than a kit PCL holds 

extraordinary shareholders meeting 
to discuss selling a larger stake to 
Thai Farmers Bank PLC; 

Sydney: September retail spending 

Bern: Retail sales figures for 

Madrid: September industrial 

Oslo: September industrial output 
Voorburg, Netherlands: Septem- 
ber and third-quarter retail sales. 

Washington: September personal 
income and spending; September 
construction spending. 

Tempe, Arizona: National Associ- 
ation of Purchasing Management re- 
leases October index 

Tuesday Tokyo: Economic Planning Agency 

Nov. 4 releases figures on household 

spending in September; Japan Au- 
tomobile Dealers Association releas- 
es October domestic sales figures. 
Wellington: Unemployment rate in 
the July-September quarter. 

London: Bank of England releases 
net consumer credit for September. 
Rome: October consumer prices. 
Vienna: October unemployment re- 

Earnings expected: KLM Royal 
Dutch Airlines NV, Adidas AG. 

New York: Conference Board re- 
ports September leading indicators; 
LJR Redbook Research service re- 
leases weekly survey of total U.S. 
sales at more than 20 department 
discount and chain stores. 

Wednesday Manila: October consumer price flg- 
Nov.5 ures. 

Tokyo: Bank of Japan's governor, 
Yasuo Matsushita, gives a lecture 
on recent financial developments; 
merchandise trade figures for me 
first 20 days of October. 

Copenhagen: August current ac- 
count and trade balance. 

Brussels: Finance Minister Theo 
Waigel of Germany speaks at meet- 
ing of European Union finance min- 
isters to prepare for summit on job- 
creation programs. 

Washington: Factory orders for 
September Mortgage Bankers As- 
sociation of America releases week- 
ly report on mortgage applications. . 
Earnings expected: CNA Financial 
Corp„ Piper Jaffray Cos., Lumonics 
Inc., Four Seasons Hotels Inc. 

Thursday J alcarta: Offering period for PT 
Nov. 6 Anela Tambang's initial public of- 
fering begins, will end next Monday. 
Tokyo: Bank of Japan reports av- 
erage interest rates for different 
types of deposits. 

Bonn: September manufacturing or- 
ders to be released. 

Brussels: EU inflation statistics for 

Rome: August industrial orders and 

Vienna: October wholesale prices. 

Washington: September housing 
completions; initial weekly state un- 
employment compensation insur- 
ance claims. 

Earnings expected: Loewen Group 
■ Inc., Rogers Cantel Mobile Commu- 
nications Inc. 

Nov. 7 

Taipei: Trade data for October. 
Tokyo: Japan Automobile Importers 
Association to release sales figures 
for October; Minicar Association of 
Japan to release sales figures for 

Bern: October jobless figures. 
Frankfurt Alan Greenspan, U.S. 
Federal Reserve Board chairman, 
speaks at Johann Wolfgang Goethe 

London: November economic trend 

Washington: October unemploy- 
ment report; September wholesale 
trade; Federal Reserve System re- 
ports September consumer credit 
weekly report on commercial and 
industrial loans at U.S. commercial 

For Mr. Amis, however, the Hong 
Kong dollar's peg is not sustainable. 
The territory; he said, "runs an annual 
trade deficit of S 1 2 billion — enormous 
for a population of only 3 million — 
because the cur- 
rency is too 
strong.” He esti- 
mates the overvalu- 
ation at around 35 
percent, and be ad- 
ded that as long as 
the viability of the 
currency peg was 
open to question, 
stock prices in Hong Kong would re- 
main highly volatile. 

In fact he said, events in Hong Kong 
are now the “primary source” of volat- 
ility on stock maikets around the world 
and will continue to be, “so long as they 
hold thai unrealistic peg.” 

In uncertain times, he said, “In- 

vestors don't stop to make sophisticated 
analysts between possible winners and 
losers. When they see sharp increases in 
volatility, they just run to reduce risk — 
it’s semi-automatic — they cut alloc- 
ations to equities globally for the safety 
of bonds or cash.” 

But Mr. Lipsky insists that this is 
“the wrong time to worry” about a 

C ible overvaluation of die Hong 
e dollar. . i 

“If the peg goes," he said, ‘the 
adjustment would add substantial new 
uncertainty to the entire region” and 
could further transform what began as a 
market event — the Thai banking prob- 
lem — “into a real economic event, 
spreading disorder and impairing real 
economic performance.” 

' 'Th/e analysts also disagree over the 
extent of the damage done so far. 

Mr. Artus estimates that the collapse 
of Southeast -Asian stock and currency 

markets represents a loss of $300 bil- 
lion. Putting it in perspective, he said, 
“That’s 2 percent of the capiialriuium 
of world equity markets — ' not a tot, and 
certainly no reason to cause a collapse in 
global equity markets. “ 

^ At the same time, he estimates that 
the resulting Shift into U.S. government 
bonds, driving prices up and yields, 
down, has enriched bondholders by 
around $200 billion. His conclusion; 
"Globally, the world has not tost Jots of 

Mr. Lipsky is less sanguine. He said 
lie expected worries about credit ouality 
to weigh on investors and to fuel a 
slowdown in global growth. 

He forecasts that the crisis will drag 
down growth in the United States next 
year to a maximum of 1 .5 percent, a rate 
below that economy's so-called trend 
line of sustainable noninftationary 

5ft 03/2*02 1175000 4X700 
2ft 09/2*07 1024000 24800 

U.S. Treasury Issues Beckon to the Tfbrld 

Cooling of Asian Economies Only Enhances Their Allure as a Haven 

5 01/31/01 984100 54700 

By Mitchell Martin 

International Herald Tribune 

NEW YORK — Amid the tumult in 
the world's financial markets over the 
past two weeks, V.S. Treasury bonds 
have become a favored haven for many 
investors, and analysts are predicting 
further gains for the bonds. 

U.S. bond. prices have been rising 
since mid-April as fern of inflation in 
America have diminish ed. There now 
are economists, in fact, who are more 
worried about deflation than inflation, 
although this view is not embraced by a 
majority. But in any case, most agree 
that the U.S. economy has expanded 
faster in the past few years without ig- 
niting pricing pressures than previously 
seemed possible. 

There are several possible explana- 
tions for this, one of which is that al- 
though American unemployment is low 
and fortunes are loaning at close to their 
capacity, die rest of the world offers a 
pool of underutilized labor and of fac- 
tories that stand ready to provide al- 
ternate supplies if U.S. companies tty to 
raise prices. That pool got a lot deeper 
after the currency devaluations that 
wracked Southeast Asia this summer. 
Those countries' labor costs have fallen 
in dollar terms and their economies have 
slowed, freeing plenty of manufacturing 
capacity to keep U.S. industry wary. 

Having peaked at a dosing yield of 
7.18 percent in April, the bellwether 30- 
year U.S. Treasury bond fell to about 
6.20 percent in early October, before the 
Hong Kong currency came under pres- 
sure and its stock market touched off a 
worldwide equity swoon. As investors 
bailed out of stocks, they bought U.S. 
Treasury issues. 

For a while, die U.S. stock and bond 
maikets decoupled. Rising bond prices 
put pressure on stocks because investors 
sensed that the movement into the fixed- 
income market reflected fears of further 
declines in equities. But even after die 
pressure came off stocks, bonds con- 
tinued to rally, and by the close of trad- 
ing Friday the 30-year Treasury bond’s 
yield, which moves in the opposite di- 
rection from its price, was down to just 

6. 16 percent, Many economists are pre- 
dicting further declines in yields. 
Mitchell Held and Douglas Schindewolf 
of Smith Barney Inc., for example, said 
in a weekly advisory that slowing eco- 
nomic growth, a reduced supply of 
Treasury issues as the U.S. budget def- 
icit disappeared and a "continued be- 
nign inflati on environment” would 
push yields down to between 3.5 percent 
and 6 percent by the first half of 1998. 

Lawrence Kreicher, chief economist 
and director of global bond research at 
Alliance Capital Management LP, 
offered one analysis of why inflation has 
been so tame in recent years: He credits 
former President Ronald Reagan with 
laying much of the groundwork for the 
current environment, however uninten- 

Until the 1970s, he said, bond in- 
vestors were an uncritical lot, taking 
their interest payments and keeping a 
tow profile. But then they were 
“burned” by foe inflation of foe late 


1970s that was kindled by rising oil. 

jr holders of outstanding bonds in the 
early 1980s, and the tax reductions that 
occurred without spending cuts under 
Mr. Reagan led to a dramatic rise in 
government debt. 

In 1975, about $395 billion of Treas- 
ury debt- was held by public investors, 
data from die Congressional Budget Of- 
fice show. That had grown to $795 billion 
by 1980, when Mr. Reagan was elected. 

By 1985, foe debt held by the public 
.had reached $1.5 trillion, and it rose to 
$2.4 trillion in 1990 and $3.7 trillion, last 
year, far outrunning the growth in size of 
the overall economy. 

This growth in foe Treasury market 
gave increased power to investors who 
became known as the ‘ ‘bond vigilantes. ’ ’ 
Their weapon was interest rates, Mr. 
Kreicher said: Whenever they sensed an 
increase in inflation, they would demand 
higher yields on their bonds. This “feed- 
back” helped keep economic growth 
from accelerating so rapidly that wages 
and prices would precipitously rise, es- 

sentially shortening and flattening the 
business cycle in this decade. 

Mr. Kreicher said he thought the U.S. 
economy was now capable of growing 
by 2.75 percent a year without generating 
excessive inflation, a rate higher than the 
25 percent “speed limit” accepted by 
foe Federal Reserve Board. Yet even 
with this year's growth expected to be 
well above 3 percent the Fed u. expected 
to refrain from raising interest rales-this 
year, in part because of the unsettled state 
of the world's financial markets. 

Alan Greenspan, the Fed chairman, 
testifying to foe Joint Economic Com- 
mittee of Congress last week, indicated 
that the declines in equity prices may 
already have slowed growth, doing the 
central bank's job for it. Since December, 
when Mr. Greenspan questioned wheth- 
er an “irrational ‘exuberance” in foe 
markets had “unduly escalated” values 
of financial assets, the Fed chairman hod 
shown various degrees of concern about 
inflationary pressures, even though few 
have been visible in the government’s 
economic statistics in recent months. 

Still, the central bank raised its target 
for short-term interest rates in March, 
and markets were braced for another 
move until the recent plunges in world 
equities. Mr. Greenspan said last week 
that foe stock market's “net retrench- 
ment of recent days”, would “tend to 
damp” the “wealth effect” that was 
encouraging rapid economic growth. 

He made it clear that he felt that 
inflation was still a threat to the econ- 
omy. Bur if the inflation is so mild that it 
does not bring about interest-rate in- 
creases from the Fed, interest rates of 
better than 6 percent on long-term 
Treasury bonds are likely to keep at- 
tracting investors around foe world. . 

In fact, even with their gains of recent 
weeks, American bonds still offer high- 
er yields than competing instruments 
from developed countries. While a 10- 
year Treasury was yielding 5.83 percent 
a year Friday, British, French and Ger- 
man government bonds all were paying 
less than 5.6 percent Japanese 10-year 
government bonds, at a 1.82 percent 
yield, are unlikely to interest investors 
who do not need yen income. 




i i h:.i n 

In Japan, Bonds Still Have Edge in Unruly Market 

irig release of government stimulus 
measures for the Japanese economy. 

The government will probably put 
out its measures this week, Mr. Aoki 
said. If the package is as mild as is now 
widely expected, that could support 
bonds, he said. 

The governing Liberal Democratic 
Party unveiled its economic package the 
week before last, and confraence fell as 
many investors apparently felt the pack- 
age offered nothing to help foe econ- 
omy- The Liberal Democratic Party said ; 
Friday it would compile a second pack- 
age by Nov. 13. 

Bloomberg News 

TOKYO — Japanese bonds we ex- 
pected to extend their gains this week, 
driving the benchmark yield to new 
lows, as prospects for global stocks re- 
main shaky. 

Bonds and stocks showed see-saw 
movements recently, with foe bench- 
mark Nikkei 225 stock average staying 
below the 17,000 mark for the past four 
trading days. 

“The focus is whether foe Nikkei will 
foil below 16,000 and foe benchmark 
bond yield will stay below 1 .6 percent,*’ 
said Kusuo Aoki, a bond analyst at 

Yamaichi Securities Co. Mr. Aoki said 
he expected the benchmark yield to 
range from 1 55 percent to 1.65 percent 
in the week ahead. 

Traders and investors are looking to 
U.S. stocks for clues to how Japanese 
equities will fore. The dive in U.S. 
stocks last week helped push the' Jap- 
anese benchmark stock index down to 
its lowest level since July 1995. 

If stocks stabilize over foe next few 
days, global investors may turn away 
from bonds in both Japan and the United 
States, traders said. 

Traders and investors are also await- 


New International Bend Issues 

Compiled by Laurence Desviiettes 



Amount Coup, 

(nffions) Mat % Pries 





Floating Rate Notes 

Bancaja Inti Finance 

Discover Card Master Trust S709 

Korea Electric Power 

*" “•° 7 1C °-°° ~ 

SI 50 

2004 040 100.00 

New York City 

Banque Sofinco 



FFIrOOO 1999 

•ft 9948 
0.03 100.031 


NotUic Inves&wmt Bonk 


— ° Wf 3 ~ffl4n1h Pibor- Nancognble. Few 610 %. (Credit Commercial Oe France.) - 

Health Management 





5% 99.11 
“7.181 100.009 

SemtoiwuaBy. Nancofcbfc: private ploganent. FewnapOL n/nmakhl lnn .1 

Deutsche Bank 

Y19400 2007 3 100ft 

SemiBwiWlBy. Nonco gable. Fees OTStt.. (MotWcst Capital MmfcrtTT 


Last Week's Markets Euromarts 

Stock Indexes 

United States 
DJ Indus. 

DJ Trans. 

Nasdaq Cp 

Oct. 31 

Oct. 24 










Money Rates 

UrAed States 
Discount idle 
Prime rate 
Federal funds rat* 

Eurobond Yields 

Oct. 31 

Oct. 24 

1225 14X5854 1756374 -621 


FfsSToO 444230 697020 —257 


TSE Indus. 444040 7.03350 -274 


ESC« 2739X9 284943 -845 


DAX 172659 60S047 -MO 

Hong Kong 

Hone Sena 1062378 11.14634 —4X7' 

GrS money 
3-a»ntti interbank 


Bank base rate 
CoS money 



wwvaition rate 
CoK money 
3-gfcmtti Interb an k 

Wo rid 

90343 9522S 

Cafl money 


London un. IbJ 

050 050 

0X3 0X4 

0X7 0X7 

740 740 

7ft 7ft 

Ate 7ft. 

340 350 

3ft 3ft 

M, 3ft, 

450 450 

450 3X5 

3J3 370 

°°- 3 ' Oct. :4%0)‘oe 
311.40 31645 <1X6 

115. 6 long tom 
115.6 md m term 

U5.S. start term 
French francs 
Italian Bra 
Danish kroner 
Swedish kronor 
ECUs, tang krai 




WL31 Ott Mft Mgk Yr tow 

6X6 650 749 
621 622 654 
*2 6t7 451 
748 7.06 775 
533 534 534 

5*8$ 7JV 

579 542 553 
5X8 5X9 5X8 
603 «X2 
Afi 656 559 
55Q 5X2 ext 
.£■96 623 756 
737 739 039 
<-33 136 215 















S*w UHKMmiiaatodtauJmoe 

Libor Rates 

Weekly Sales axx 

Primary Mona 


IsF L 5 ! ^ 

ECP ISf- 9 977.5 

rS,i 7.916* 1 1,691 X V.2UJJ 

total 1 1528.9 9Jd7 7 153283 1X71*2 

jfecondonrMnrt et 

ten Sbomt 

CaSS5 S5 f3?a , n 3*1156 

F» Iu TL 9174 4,166 7 34499 

ECP ?^'“?.7 67235 72007 J m*U 

rS.. US 7 J 17,2183 2&949X 3687/./ 

Total 77,9944 4110*12567795 79X514 

f WMiew. c«W Bank. 






page: 13 

Despite the War, Sarajevo Furniture Maker Persevered 


Work to Resume at Kia Motors 

By PeterS. Green 

International HeruU Trihum, 

SARAJEVO. Bosnia-Herzegovi- 
na — While he was re- 
covering from a ballet 
wound during the 43- 
month siege of Sarajevo, 

Haris Haznadarevic 
dreamed of wood. Vi- 
sions of oak, cherry, 

beech and maple danced 
in his head. 

But while most Sara- 
jevans dreamed of burn- 
ing wood to ward off the winter chill 
in their besieged city, he dreamed of 
sawing it, planing it, joining it and 
carving it to make furniture. 



Until he was drafted to sit on a 
frontline hilltop to hold off the en- 
circling Bosnian Seths, Mr. Haz- 
nadarevic, like his father and grand- 
father before him, had a 
small furniture workshop 
in his own garage, where 
a handful of workers 
tinned out sofas, beds 
and armchairs for local 

nDb In besieged Sarajevo, 
^ where most business had 

stopped, and residents 
• got % on relief handouts 
and their savings of hard currency, 
Mr. Haznadarevic recalled that re- 
opening ius workshop was not about 
making money. 

“There was one imperative in 
everyone's life in Sarajevo — that 
we have to continue, we have to 
keep making thing s to stay alive,” 
be said, sitting in an extravagantly 
carved armchair in his new show- 
room on a Sarajevo side street 
“Everything around me represented 
destruction," be said, “and I 
wanted to do something construct- 
ive. That was pan of my own 
snuggle for survival." 

Released from the hospital and 
the army while die siege continued, 
Mr. Haznadarevic found that not 
only were there customers for his 
wont, but it was even possible, with 
a lot of ingenuity, to find fresh 

With gas and coal deliveries to 
die city cut off, Sarajevans were 
burning everything they could find. 
Old leather shoes (once lit, they bum 
very well) bookshelves, furniture 
and doors. A cord of firewood could 
fetch several hundred Deutsche 
marks. Sarajevo’s wartime cur- 

“I'd buy firewood and trade it 
with someone, who had boards so 
that I could make something," Mr. 
Haznadarevic said. 

Some boards arrived in a ship- 
ment of coffins through a narrow 
tunnel that ran under the United 
Nations- controlled airport connect- 
ing the capital to government-held 
areas beyond. Once, Mr. Hazaada- 

ITALY: Prodi Defends Accord on Public Servants ’ Pensions 

'* '*7i« */| 


Continued from Page 1 

pension re- 
our social 

succeeded in be 
form “without 

He also said it was “historically 
important” that under the accord 
public employees would no longer 
be able to earn pensions after just 20 
years of service, but instftwrf would 
have to work at least 35 years, as is 
in the case in the private sector. 

“Thar represents a major saving 
for public sector finanr^ anrt it is 
also fair,” Mr. Prodi sa id 
Opposition leaders, along with in- 
dustry spokesmen, attacked the deal 
as little more than a half measure. 

They said it did not go for enough 
ch tf 

^ and proved how much the Refoun- 

' A*±A Pnmtvtiiw.rt D ^ . 4». L-J I i 


ded Communist Party had succeeded 
own welfare 

in watering down welfare reform as a 
result of the political compromise 
struck last month to save Mr. Prodi’s 
center-left coalition government. 

Thai compromise with the Com- 
munists also called for the govern- 
ment to introduce legislation cutting 
the workweek to 35 hours from 40 
hoars by 2001. 

- Antonio Martino, a former for- 

eign minister and close aide to the 
opposition leader Silvio Berlusconi, 
called the deal “cosmetic," saying, 
“■With this accord we will find that 
we won’t be able fund our pension 
system 10 years from now.” 

The Coni ere della Sera newspa- 
per, in a front-page commentary 
Sunday, termed the accord ' ‘a very 
small reform" while die Confm- 
dustria employers federation said 
that * ‘the deal does not taclde struc- 
tural problems.” GuidaJbeno G tridi, 
a top Confindustria official, called 
the reform package inariBquare , say- 
ing, “Italy has been blackmailed by 
the Refounded- Communists and is 
now paying the price." 

• “We didn't get everything we 
might have hoped for,” Mr. Prodi 
acknowledged, conceding that 
“some of the criticism is justified." 

“This may not be die total re- 
sult," he said, “but it is a substantial 
step in the right direction." 

Reacting to Confindustria’s crit- 
icism, Mr. Prodi noted, “They say 
the pension reform is insufficient, but 
they don't say it is wrong." 

In addition to state pensions, he 
said, “we need to encourage the de- 

elopment of private pension funds, 
nd this will clearly be done." 



Criticism of the accord also fo- 
cused on exemptions for the pension 
rights of factory workers. Mr. Prodi 
agreed that because of these ex- 
emptions, more than half of Italy’s 
workers will be excluded from the 
deal, but he said this was because of 
objections from trade unions rather 
than from the Communists. 

The accord calls for raising the 
age to qualify for Italy's generous 
early retirement pensions, but it 
does not eliminate them. The deal 
will delay the early retirement of 
32,000 public sector teachers by a 
year to 1999, Mr. Prodi said. 

The deal agreed to Saturday, after 
four months of negotiations, in- 
cludes a reduction of index-linked 
increases for pensions above the 
threshold of 3. 5 million lire a month. 
It will also curtail the privileges of 
certain professional categories that 
receive high pensions. 

Mr. Prodi said the government 
planned to make the welfare reform 
package final by Tuesday to send it 
to Parliament by Wednesday. 

Sergio D ’Antoni, a centrist trade 

Agcax Fnniz-Pm* 

Mr. Prodi, who said the pension 
deal marks “a substantial step.* 

union leader, said the deal was “a 
good accord." Sergio Cofferati, lead- 
er of the CGIL, Italy’s biggest union, 
said, “For the first time, everyone 
will be treated the same way.*' 

re vie traded firewood and scraps for 
planks from a chicken coop whose 
owner had eaten all his binds. 

For the first three months, he 
worked in his own home, then ex- 
panded to a bomb-damaged school- 
house. His 35 carpenters and up- 
holsterers worked for 150 marks a 
month each, and a half-dozen sol- 
diers came to work on their off- 
hours, Mr. Haznadarevic said, to 
supplement their meager military 

Throughout the Serbian bom- 
bardment of the city, the latbes and 
band saws kept turning. When elec- 
tricity failed, the craftsmen used 
hand tools. 

“It's hard to explain, but we 
rarely stopped working during the 
war," Mr. Haznadarevic said. 
“During those difficult times the 
pay from the work kept them alive 
and it kept their families alive.” 

Despite the appalling wartime 
conditions in Sarajevo, Mr. Haz- 
nadarevic said he still found cus- 
tomers for his furniture. 

Only those with the connections 
and the agility to procure or sell the 
bare necessities of life — food, cig- 
arettes, instan t coffee and whiskey 
— had any spare cash io hand, yet 
enough of them existed to spend 
about 50.000 marks buying Mr. 
Haznadarevic *s furniture in 1994. 

“The money here was used to 
defend Bosnia,*but of course before 
the money reached its final point, it 
had to circulate. The people who 
bought the furniture helped money 
to circulate in the city,” ne added. 

With the war over and Bosnia’s 
trade links slowly reviving. Mr. 
Haznedarovic has begun selling his 
stylized bed sets, sofas, easy chairs 
and low tables in Germany, and 
plans to begin sales in Austria. 

About 25 craftsmen now work in 
the auditorium of a framer cultural 
center in Sarajevo’s Carsija neigh- 
borhood, earning op to 600 marks 
($350) a month in wages. And the 
company’s turnover, be said, has 
reached 400.000 marks. 

SEOUL (Reuters) — Kia Motors Crap, was set to resume 
operations Sunday after hard-line union workers ended a IU- 
day strike and creditors reopened credit lines to the company. 

The company’s workers went on strike Oct. 22 after Fi- 
nance Minister Kang Kyong Shik announced the government 
would put the company into court receivership. 

’ ’The strike has ended and workers will go back to work as 
of lomoirow. “ said Lee Hwa Won. a Kia spokesman. 

The 1 0-day strike, which affected seven business days, cost 
.the company an estimated 252 billion won ($26 1 .2 million i in 
lost production. Mr. Lee said. 

Thyssen and Krnpp Favor Merger 

FRANKFURT (Reuters) — The chairmen of Thyssen AG 
and Krupp AG are in favor of a merger that could create one ot 
the biggest industrial concerns in Germany, according to a 
report to be published in Focus magazine. 

Knipp’s Gerhard CYomrne and Thyssen’s Dieter Vogel said 
they were convinced that die synergies between their two 
companies were good enough to make a merger worthwhile. 
Focus reported in a summaty of an article to be published in ii* 
Monday edition. 

it said the two men were expected to inform North Rhine- 
Westphalia state's economics minister, Wolfgang Clement, of 
their plans as early as Tuesday. 

Shareholders Sue Boeing Executives 

SEATTLE (Bloomberg) — Shareholders of Boeing Co. filed 
a lawsuit claiming that executives concealed production prob- 
lems to buoy Boeing’s shares while the company completed its 

purchase of McDonnell Douglas Coip.. their lawyer said. 

that Boeing officials knew os early us 

The suit contends 
April rhat production problems would “drastically affect the 
value of Boeing stock." 

Steve Berman, their attorney, claimed that Boeing should 
have filed details of production problems at the end of tts 
second quarter on June 30, instead of waiting for three months. 
Boeing admitted on Oct. 22 that inefficiencies would cos! the 
company S2.6 billion over the next 15 months. 

Haitai Asks for Debt Rescheduling 

SEOUL (Bloomberg) — Haitai Group, a South Korean 
conglomerate, said it asked a court to reschedule debt juy- 
menis of about 1 .5 trillion won to four companies in a bid to 
avoid bankruptcy. 

The Korea Stock Exchange on Saturday suspended trading of 
Haitai Confectionery’ Co., Haitai Dairy Co. and Haitai Elec- 
tronics Co. because of speculation about the court application. 

The Haitai Group owes Cho Hung Bank Co., its major 
creditor bank, and other banks such as Korea Long Term Credit 
Bank Co. and Seoulbank Co., a combined 1.5 trillion won. 

Haitai also sought court receivership for three other un 1 1 <• — 
Haitai Electronics Co.. Haitai Heavy Industries Co. and Haitai 
Industry’ Co. 

A Realtor Goes Swimming 

^ Africa Israel Investments to Acquire 80% of Gottex 


{ nrulv 



JERUSALEM — Africa Israel Investments 
Ltd. said Sunday ft would acquire an 80 
percent stake in Gottex Ltd., a maker of 
women’s swimsuits, maiking the real estate 
company's first foray into fashion. 

A spo kesman for the company declined to 
comment about how much Africa Israel 
would pay for the stake. But it said that it 
intended to take the stake alone and that the 
remaining 20 percent would be retained by 
Leah Gottlieb, the founder of the swimsuit 

A company source said the deal would be 
completed within two days. 

The purchase is not part of' a strategy to 
move into fashion, said Anat Weiss, a spokes- 
woman fra* Africa Israel. 

Africa Israel has been seeking to diversify 
its holdings, which also include hotel, build- 
ing products and energy co mpanie s. 

It is controlled by an Orthodox Jewish 
businessman. Lev Leviev, who set off a dis- 
pute this year when he forced a McDonald's 
restaurant in one of his company’s malls to 
Kclose on the Jewish Sabbath. 

, J “Gottex is being acquired in order to con- 
tinue developing the world renown brand,” foe 
firm said. “In tins spirit, we plan no changes in 
the character of its products or the line.’ 

Africa Israel said Mrs. Gottlieb, who foun- 
ded Gottex in 1954, would continue as chief 
designer. Africa Israel denied it was mainly 
interested in Gottex ’s real estate assets. 

Gottex exports to about 100 countries, in- 
cluding the United States, Germany, Japan, 
Egypt, Morocco and Russia. 

Despite its famo us label, Gottex has ex- 
perienced financial difficulties in recent 
.years. ...... . 

Sources dose to the deal said the company, 
which has sales of aboot $60 million a year, 
has run up a debt of $20 million. 

Israeli newspapers reported that Africa Is- 
rael had agreed to pay off the company’s bank 
debt as well as the personal financial com- 
mitments of Mrs. Gottlieb. 

Mr. Leviev made headlines last month, 
when an arbitrator ruled that Africa Israel 
could require its new shopping mall in north- 
ern Tel Aviv to dose Friday night, the be- 
ginning of die Jewish Sabbath. 

Ms. Weiss said the McDonald’s dispute 
had nothing to do with Mr. Leviev 's religious 

“The ma ll was closed according to the law 
that says businesses must close on the Sab- 
bath," she said. “Africa Israel is a business 
concern, not a religious company or a secular 
company.” (Reuters, Bloomberg) 

STOCKS: Bargain-Hunters Pick Their Targets 

Continued from Page 13 jmee 

i HP* 

Similarly, he likes Warner- 
Lambert Co., the drag com- 
pany. A big reason is the com- 
pany’s two new blockbuster 
drags — Lipitor, a cholesterol 
Reducer, and Rezuhn, a dia- 
foetes medicine. Both will have 
patent protection for many 
years, and Mr. Davis predicts 
that Warner-Lambert will also 
continue to benefit from large 
trends such as the aging of the 
world's population. 

But Warner-Lambert stock 
must tumble to $120 from its 
current $143,375 for Mr. 
Davis to buy it. At $120, the 
company's price-earnings ra- 
tio would match the 29 per- 
cent expected earnings in- 
crease in 1998. 

Thinking about such drops 
may seem like daydrea m i ng . 
But after last week it may 
seem less so. Warner-Lam- 
bert fell from $151 to $140^0 
last Monday — about half the 
drop that Mr. Davis wants be- 
vfbre snapping it up. 

In a down market, Ricnaju 
Weiss, the manager of the 
midcap Strong Opportunity 
fund, would take a look at 

were to fall to $32, Mr. 
r eiss said he would jump in. 
Mr. Weiss looks for a stock 
trading at a 40 percent dis- 
count to the company's es- 
timated acquisition value, or 
what arival or other company 
would pay for the enterprise. 
To arrive at acquisition es- 
timates, he uses a variety of 
yardsticks, such as price- to- 
sales ratios or the value of an 
oil company's reserves. 

With CNF, as with Sigma, 
the gauge was a ratio of earn- 
ings to the company’s value, 
or its market capitalization 
plus debt minus cash. 

In a decline, Steven Reid, 
manag er of the Oakmark 
Small Cap fond, dreams of 
buying something tasty — 
Tootsie Roll Industries Inc. 

Jt has no debt, and the fame 

of its brands, which include 
Tootsie Rolls and Charms, 
means it can avoid huge mar- 
keting costs. The company 
also has operating margins of 
more than 20 percent, sales 
generally undisturbed by eco- 

nomic downturns and a hefty 
cash balance. 

Mr. Read has set $37 as the 
target buy price, a farciy from 
the current $56.75, and Toot- 
sie Roll is a steady performer 
unlikely to be too severely 
tattered in a down market 
Then again, the company was 
trading at his target price of 
$37 as recently as February, 
although earnings growth and 
the market’s rise have since 
bolstered the price. 

The largest holding in Mr. 
Reid's food is Peoples Bank of 
Bridgeport. From a closing of 
$36.0625 a week earlier, the 
Connecticut tank’s stock 
ended Friday at $32.75. 

Given its profitable credit 
card .operations, expanding su- 
permarket presence, and repu- 
tation for siphoning depositors 
from out-of-state banks. 
Peoples is a bargain below $30 
a stare, Mr. Reid said. 

He tried to get yet more 
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he said, but liquidity problems 
prevented him from doing so. 

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CNF Transportation Inc., a 
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PAGE 18 



Weak but 
Too Strong 
For British 

OmpiMby Our SugFn M Dafuacita 

Australia showed it could 
beat Britain at Rugby League 
with one hand tied behind its 

Australia beat Britain, 28- 
14, at Wembley in London on 
Saturday. The Australians did 

Ruoby Roundup 

not field a single player from 
the team that won the Rugby 

League World Cup in 1995. 

In rugby's 13-man code, 
Australia has split into two 
feuding leagues. The current 
team is drawn from Rupert 
Murdoch's Super League. 

Captain Laurie Daley ran 
in a first-half hat-trick of tries. 
The second and third came in 
three minutes just before half 
time after Britain had taken a 
14-10 lead. 

Australia 23, Argentina 15 

In Buenos Aires, Australia's 
Rugby Union team also won 
Saturday. It was the Walla- 
bies first test victory in South 
America since 1979. Owen 
Finegan scored die only try of 
a scrappy match when he 
combined with scrumhalf 
George Gregan to touch 
down in the fifth minute. 

European Cup Brive, the 

defending champion, Leices- 
ter and Cardiff won playoffs 
Saturday to advance to the 
quarterfinals of the European 

Brive. from France, beat 
Pontypridd, from Wales. 25- 
20. It was their third meeting 
in six weeks. The teams had 
brawled, on and off the field, 
during and after the first 
game. On Saturday, Brive led 
18-0. but Pontypridd replied 
with 20 points before winger 
Jerome Canal restored the 
home team's lead with a try. 

Joel Stransky, die Leicester 
flyhalf, scored 35 point as the 
English team thrashed Glas- 
gow, 90-19. Cardiff beat a 
fellow Welsh team, Llanelli, 
24-10. (Reuters, IHT) 

The Associated Press 

Patrik Elias scored his fifth goal in three 
games to break a second-period tie and lead 
die New Jersey Devils to a 3-1 victory over the 
slumping Washington Capitals. 

Petr Sykora and Bobby Carpenter also 
scored on Saturday night as the host Devils 
won their third straight and fifth in six 

NHL Roundup 

games. Martin Brodeur, who has given up just 
two goals in the last three games, had 24 
saves, including several big stops with Wash- 
ington pressing in the third period. 

Richard Zednik snapped his 10-game goal 
drought in scoring for the Capitals, who are 
now winless in their past six games. 

Canadians 5, Maple Leafs 1 In Montreal. 
Benoit Brunet scored his first two goals of the 
season as the Canadiens beat Toronto. Brunet 
scored on a 2-on-l break in the second period 
and later beat the Leafs' goaltender. Felix 
Potvin, during a Toronto power play. 

Islanders Kings 2 Zigmund Palffy scored 
twice and Kenny Jons son. added three assists 
as the New York Islanders beat visiting Los 
Angeles for their third straight victory. 

Injured Street Dreams 

Despite Slow Comeback, Skier Expects to Be on Podium in February 

r t ^ , - - iqcq “I 1990. she was suspended from the n* 

By Amy Shipley 

Washington Post Service 

had a similar knee injury in 1989, I 
didn't want my leg telling me I can t go. 
We’re in cahoots now ” 

Still, as the ski racing approach^, see 
has come to realize that her planner 
rehabilitation will not be finished by the 
flip* die Olympic Games start. Ideally, 
she would spend the next three months 
racing herself into peak competitive 
form. In reality, she has not been able to 
meet the recovery schedule she set for 

herself. . , 

"I battled depression within the first 
month,” Street said. “It was watching 

S ALT LAKE CTTY — -On her way 
down a mountain in Chile, during a 
training ran designed to test bar 
surgically repaired left knee, Picabo 
Street, the Olympic silver medalist, 
skied to a stop, her knee throbbing. She 
sal down in the snow, covered her face 
with her hands, and began to sob. 

Street's knee has improved from dial 
day when a training setback and frus- 
tration boiled over so violently she had roonm, street sm “ 
to be counseled off the slopes byacoach. my body change after fiveorsuty«tJ“ 
But even as she gradually returns to vigorous training jnancbu&i nao 
racing fora — she said last week she is layered myself with- I fffhttajnM 
about 93 percent recovered from a torn layers, especially off my 1 eft wen* 

anterior cruciate ligament suffered last from large and tight to small and mushy ■ 
December — she can’t help but doom I’d catch myself sitting^ “} 

the speeding approach of the 1998 room, looking at my little, atrophied leg 
Winter Games in Nagano, Japan, which and just crying.” 

1990. she was suspended from die na- 
tional team’s summer camp for being out 
of shape. In 1 992, she was put on pro. 

bation for her attitude. 

This year, as the most veteran female, 
skier, she has been determined to assume 
a mature leadership roJe. _ 

She chastises herself for spitting her 

emotions in Chile. . - ■ ' ■ 

•‘I have to be more professional than 
that,*’ she said “I have to be in control, 
and look at the big picture all of the 

Street has made every attempt to pre-. 
pare herself for the Winter Games. Soon- 
after her surgery early this year, she went . 
to Nagano and skied the Olympic course 

riding od the back of assistant coach. 

Andreas Ricksitbocii. They stopped to- 
survey several spots. 

“I've already goi two or 

B3 Ko^iou/llir Awxtanl (W 

The Devils’ Reid Simpson landing a right to the jaw of the Capitals’ Brendan Witt. 

Devils Keep Capitals Down 
As Elias and Brodeur Shine 

Penguins 7, Canucks 6 In Pittsburgh, Rob 
Brown scored with 1:08 left in overtime to 
give the Penguins a wild victory over strug- 
gling Vancouver. The Canucks, in the midst 
of a 1-7-1 skid, blew athree-goal lead they had 
built by scoring five goals during a six-minute 
span in the first period. 

Brums 3, Oilers 1 Ted Donato, Jason Allison 
and 71m Taylor scored, and Byron Dafoe 
stopped 22 Edmonton shots as Boston gained 
its first home victory since OcL 2. 

Sabres 4, PuRthers 3 Dixon Ward scored an 

unassisted goal with 3:46 left in overtime to 
give visiting Buffalo a victory over Florida. 

Blues 2 , sharks o Chris Pronger broke a 
scoreless tie with 2:23 remaining, and Grant 
Fuhr made 23 saves as SL Louis continued its 
home-ice domination with a victory over San 

Avalanche 3, Hamas 3 In Denver, Joe Sakic 
converted Colorado’s first penally shot of the 
season, but the Avalanche blew two leads and 
had to settle for a tie against CaJgaiy. 

Sakic was selected to take the penalty shot 
with the game tied, 2-2. after Calgary's Aaron 
Gavey threw a broken stick at a Colorado 
player at 7:33 of the third period. Calgary 
remained winless on the 

begin in early February. 

“She's already talked about winning 
a gold medal and I say, ‘Be quiet,* ” said 
J im Tracy, the U.S. women's downhill 
coach. “It doesn’t do any good — let the 
pressure fall cm somebody else. She’s in 
rehabilitation now, training, and she'll 
be there until she's at 1 10 percent of her 
ability. But once the gates open, she’ll be 
frying. People will be amazed.” 

Street, the 1996 weald downhill 
champion, fully intends to be in medal 
contention in Nagano in February. Of 
course, she also fully intended to make 
her way down that slope in La Parva, 
Chil e, before pain encouraged iter to 
tula- a seat in the snow. The pain was 

caused by scar tissue from her December 

surgery. It gradually dissipated with dry- 
land training. 

“I'm a racehorse,” said Street, who 

.#•!', ’ , 1 v* . , 

I vt uuvovly 

. w seconds, spots I know I*ve already got an ■ 

Sme£££Llly adjusted to the slow edge on eve^y.jua because pe^te 

th» full don't dunk, and 1 do think. Street said. 

pace* of* rehabUitotion. J Besidestbe full don’t ^ 
tear of her anterior cruciate, she also ’ 1 was good in geometry u school. That. 
suffered a partial tear of the medial col- was i iJVj , sl ?? s Iws W to be r 
lateral ligament. But once she returned good downnillcr. 

lP ■ 1. . T..1. • ,, nislrlu oc 1 

to the slopes in early July, as giddy as a 
child about being back on skis, she ex- 

“She's real/yhad to swallow a few 
hard pills some she hasn't wanted 
to," Tracy said. “She likes to do what 
she sets out to do. It was hard for her to 
realize die wasn’t going to be ready at 
the be ginning of the season and wasn t 
going to be in top form before the first 
race, a Super-G on Nov. 27 at Mammoth 
Mountain, Californio.” 

Street, 26, has not lost her enthusiasm. 

Yet, she is no longer the rebellious, up- 
and-coming kid skier who could simul- 
taneously mesmerize and antagonize. In 

Owy Wqt*cficpd«iitfnie AMaaon nm 

Picabo Street gliding down the slopes of Oregon’s Mt- Hood. Although 
rehabilitation from an injury has been slow, she expects to be back soon. 

The turning point in her career is- 
usually considered the eighth place she 
won in a 1993 World Cup downhill. The ■ 
following year, the Ultehammer Games 
represented the break-the-bank point- 
Street won a silver in an unexpectedly 
dominant year for the U.S. team. Diana.. 
Roffe-Stemrotter added a gold in the 
Super G, and Tommy Moe won a silver, 
ana gold. Freestyle skier Liz McIntyre 
added a silver in moguls, giving the 
United States five medals, tying its A 
highest tally — five at the 1984 Winter 
Games in Sarajevo. 

“It didn’t really hit me that hard until 
I got off my return flight in either New 
York or Chicago,'" said Street, who ex- 
pects to continue in skiing long enough 
for the 2002 Winter Games in Salt Lake 
City. * ‘Two airline attendants met me at 
the gate and ushered me through die 
airport, i realized, wow, my life has 

Since that success, however. Street 
and Moe each suffered knee injuries. 
(Moe, who suffered his injury 316 years* 
ago, says he feels completely healthy.) 
Roffe-Steinrotter retired Hilary l- i ndh ,- 
die most decorated female skier in U.S. 
history, also retired. The decimated U.S. 
ski team had a terrible season on the a-' 
World Cup circuit last year. "I’m look- v>-- 
ing for die top 20 or top 15 through 
December,” Street said. 

“Then, in January, that’s when the 
hammer comes down and I start ex- 
pecting myself on that podium in every 
downhill race.” 


u? ■ 

1 1 


Sc orebo ard 


NBA Standings 



Now Jersey 


New York 












2 0 

I 0 


















San Antonio 



i»A Lakers 





Golden State 

LA. CEppcra 

W L 



1 1 

I ] 

0 3 
















Mflvroata BUB 29—103 

PMMoUNa 24 21 22 21— M 

M: Allen 10-303-32(4 Robeson 9-152-2 2ft 
P: Jackson 8-13 1-2 1& Cabman 6-1454 17. 
Botoands — MBwaukee 44 (Johnson 9). 
Ptmodetphia 46 (Coteman II). 
Assists— Milwaukee 33 [Brandon 9J, 
PModdphio 23 (Jackson 7). 
tntfana 21 29 21 17—95 

New Jersey 20 28 73 20-97 

I: MMcr 10-19 12-13 35. Smits 9-13 0-2 lft 
ru.-Ga 7-18 60 3a WBSoms a-is 2-6 i& 
Cassell 3-16 12-12 18. B eb oo rah t ndhmo 63 
(DOavts 173. New Jasey 63 (WBfioms 20). 
Assists— ImSoni 22 (Best 9). New Jersey l* 


Atlanta 28 27 22 35-105 

Offends tl 33 23 25— 99 

A: SmSti 7-13 M 73. Henderson 8-12 44 
2ft O: Hadaway I0-2T U-'331.SeBidy 11- 

14 6-9 28. Het wuu di AW o nta 49 (Mutoadm 
12), Orlando 34 (Srtkoty 11). 
Assists— Abaato 21 ffitoytock 13). Orlando 

15 {Hanlawar. Ancatraag 31. 

Tamale 27 M 27 21-101 

Mkmd 33 25 26 30-114 

T: Christie 6-14 44 I&WHans 6-13 5-S 
iftMiMesfabam 9-14 34 22. Hardaway 7- 









I U00 





14 3*3 21, Remands— ^ Toronto 51 [Cam by 
121. Miami 61 (MMs 10]- Amsts-Toromo 
17 (WNoms 4), Miami 28 [Hardaway II). 
Chicago » II IS 27- os 

Boston 12 22 34 24- 92 

C: Jordan 7-23 16-21 3ft Coffey 6-13 1 -4 13; 
B: Walker 13-26 3-5 31. BiBups 6-12 2-2 15. 
Retmmds— CMcago S3 (Rodman 9), Boston 
60 (KnightlS). Assists— Chicago 16 (Harper, 
Jordan 41, Boston 18 (BVupsG- 
New York 23 23 24 27— 97 

Chartelto 17 21 2* 21-85 

N.Y.: Ewing 9-13 5*1023. LJohnson 9-134- 
6 22* Moson 7-13 7* 14 21, Geiger 5-9 6-7 16. 
Rebounds— New York 45 (Oakley 8), 
Charlotte 58 (Mason 12). Assists— New York 

27 (Ward 8). Chortotte le (Wesley 7). 

Washington 21 22 16 20- 79 

Detroit 24 24 22 22-92 

W: Webber 8-19 24 19, Howard 4-10 S-5 
I ID: HB 9-17 741 25. Hinder 8-15 68 23. 
Rebounds— Washington 47 (Webber 77. 
Detroit 63 (HiB 17). Assists— Washington 23 
(Strickland B). Detroit 1 1 [HiB 8). 

Golden State 27 28 33 25-113 

Minnesota 31 38 33 27-129 

V: sprewefl 18-31 54 £& Marshall 9-22 14 
lftM: Gugflatta 10-15 8-10 2& Garnett 10-17 
54 25. Rebounds— Golden State 56 
(Mcnhcfi 101, Minnesota 54 (Gagliotta 
Garnett ID. Assists— Golden State 24 (Cates 
9). Minnesota 38 (Marbury 141. 

Clawfaad 17 18 20 31—86 

Houston 27 19 25 23-94 

C: Knight S-9 8-10 IB lEgauskas 5-13 6-10 
1« H: WOts 10*12 04) 2ft Draslor 5-12 7-8 17. 
Rebounds— devetand 59 (Itgouskos 16), 
Houston 53 (Willis. Olaiaworv BarMey 8). 
Assists— Cleveland n [Sura 61. Houston 26 

San Antoato 21 22 30 34—107 

Denver 26 24 21 25— 96 

S A: Robtasoo B-17 5-9 21. Johnson 7-13 5- 
6 1ft O: B Jackson 10-19 5-5 27. E.WilBCBi»6. 

1 7 5-6 J*7, Stitti 6- 17 4-6 1 /. Rebounds — San 
Antonio 61 (Robinson 13), Denver Jl (Bathe. 
Garrett. B Jackson 6). Assists— San Antarea 

18 (Johnson 5). Denver 12 (E.WilBiims. SWh 

LA.CSppor» 34 25 22 19-100 

Phoenix 29 34 28 19-110 

LA_- Bony 7-122-3 2ft Rogers 5-10 7-2 4. 
Vfflrgltf 7-12 0-7 K Mutiny 6*9 04) 14 P: 
Chapman 9-18 5-6 74 McDyess 4-7 9-10 17. 
R ■bounds— Co? Angeles 50 (Vaught. 

Vmnkmric 10). Pbcadx 44 (Kidd 141. 

Assists— Las Angeles 25 (Barry 71. Phoenix 

28 (Udd 16). 

Stone 24 38 IS 23—91 

Porthrod 20 21 26 16-83 

5: Baker 6-13 5-8 17. Payton 6-174-7 16; P: 
Gram 8-14 3-5 19, Crolty S-& 4-1 17. 
R*beowJs — 5njJSeS2 (Schnmipi, Kersey 9), 
PotOand 56 (Grort 111. AwMs— S cbBo 21 
( Payton 6). Portland 21 tCndfy 8). 

Utah 28 17 19 23— 87 

LA. Lotas 16 27 25 36-104 

U: Anderson 8-17 5-7 21. rAafcme 7-14 6-9 
3ft LJU Bryant 5-13 13-14 21 Von ExeT 7-13 
2-3 22. Rataandi— Utah 62 (Malone 14}, Los 
Angela 56 (Horry 13). Assafa-Utnt. Is 
(Eisfcy 6), Los Angeles 27 I Harry. Vcn Exet 


Do Bos 26 17 31 16— 9* 

Vancaonr 18 27 21 22- 88 

D; Davis 8-13 1-2 1& Bradley 7-1934 17,-V: 
Abdw-Rahim 14-24 3-531, B-Reeves 7-16 1 -1 
15. RoiMumls— Dallas 51 (Green 14), 
Vancouver 57 (Abdur-Rohim, Thorpe 9). 
Assists— Dallas 18 (Flidey 5], Vancouver 25 
(Mayberry 7). 

Goldea State 18 II 23 24- 83 

Indiana 28 20 23 25— 96 

VrSprawdl 9-22 7-8 25. Sfidth 7-183-61?;!: 
MBter 11*2! 8-9 33. 5m3s n-23 )-2 23. 
Rebounds— GoMen State 59 (Dampier ID, 
Indtano 69 (Smtts 13).Assisls— Golden State 
11 (Coles 6). Indiana 27 (JodrsonlO). 

Mtood 30 32 25 23-109 

Washington 24 M 26 28— IN 

M: Hardaway 10-22 4-5 26. Mastibuin 6-11 
541 .IftW: Webber 13-26 3-1 3ft R^tlKMand 
8-18 44 2ft Reboends— Mtomi 48 (Austin 
13). Washington 51 (Webber 13). 
Assists— Mtomi 22 (Hwdovray >1), 
Washington 27 fiUlrickland 13). 

TarvnlB 11 25 24 25— W 

Atlanta 23 29 15 23- 90 

T: Stattdamiie 8-204-4 Zl. Chrtstte 5-12 3-4 
13;A:MvtorobaB-lT2-21ftSmafa6-11 54 17, 
Henderson 6-7 56 1 7 JJebotwts— Toronto 45 
(Jones 7), Atlanta 60 (Mutombo 12). 
Assists— Taranto 19 (Staudandro 93, Atlanta 
19 (BtaytoOkS). 

CboiMta 26 19 » 25- 90 

Mmnesetn 29 21 27 29— IN 

C: Geiger 6*14 9*9 21, Farmer 36 33 1ft 
Rice 3-9 4-4 ia Wesley 4-7 2-2 1ft M: 
Marbury 8-19 6-7 23. GugSotta 9-19 2-4 20. 
Rehoonds— Chortotte 46 (Mason 11), 
Minnesota 59 {Porto 131. AssUs-ChHtotte 
15 (Mason. Westey 41, Mkmesota 27 
(Marbury 73). 

CtoMhnid 15 22 20 22- 80 

Sun Antonia 23 16 19 25— 12 

GKemp 10-254-726, Andenon2-HB4l1X 
IlgaiMkas 5-11 3-4 13; SJto- Rabinsaa 8-13 6* 
7 22. Del Negro 6,10 3-5 1 S. 

Rebounds— Oevetand 42 (Kemp 10), Son 
Aittaftio 39 (Robinson 91. A whW r- devetand 
IS (Person 4. Sura 4. Henderson 41, San 
Antonio 25 (Johnson 7). 

Phdadetpbia U 16 18 25- 74 

Chicago 27 17 35 15— 94 

P: Stackhouse 6-1433 IS Jackson 6-1 1 ft 
0 13, twrson 5-15 34 13; C Harper 7-13 34 
17. Jordan J-\a 2-2 IA Rebounds — 
Phaadalphia 51 (Madross 10), Chicago S3 
[Rodman 13). As slsto P hHodetpldg 14 

(Iveraan 4), Chicago 29 (HteperS). 
IfmuJarsay 23 31 18 28 13-113 

MAwaokee 23 27 34 16 9-109 

NJ; Cnssen9.?4 15-1931 Getting 11 -2D 3- 
11 25,-M: Robinson 11-19 10-13 3ft ABen 
5-6 26. Rebounds— New Jersey 54 (WOtans 
13). Mihmultee 51 (Mniwa 14). 

Assists— New Jersey 18 (Cassefl 7), 
JHtaarifcee 1 9 (Brandon 7). 

Denver 29 15 18 23- 84 

Utah 24 28 31 19-102 

O: Stitti a-14 6-7 1& Fortsaa4.ll 7-9 1 Si U: 
Mtflone 8-10 8-10 24. Hanecefc 5-10 3-3 14. 
Rebounds— Denver 45 (WSfaras 7h Utah 68 
(Ostortog M). Assists— Denver 14 (WaOams, 
Jackson J), Utah 27 (Homacek, Eoleyd). 

Dallas 14 S 16 34-89 

Saaflhr 2S 23 23 18-81 

D: Holey 5-1310-142H Brarfcy 7-143-3 17; 
S: EHls 7*13 0-0 IS, Payton 4-13 46 
l2JRebomds— OaBas 61 (Bradley 14). 
Seattle 45 (Scfmnipt 8). Assists— OaBas 17 
(Offle5LSeratle21 CPayton123. 

Saannente 27 26 26 17— 96 

Vancouver 27 26 24 28-97 

S: Richmond 6-1 7 12-1 3 24, WUtamson6-13 
64 IK V: Abdur-RoMm 5-16 9-10 19, Reeves 
7-11 34 17. Rebounds— S uciu i H B H to 53 
(Smith 12), Vancouver 51 (Thorpe 13). 
AnWt— Sacramento 18 (Dohora 4), 
V a n co u ver 22 (Mayberry 6). 

PWfland 22 18 It 26-82 

LA- CHppers 20 15 23 16- 74 

P: Anderson 6-1 9 8-9 2ft Grant 7-15 5-7 1ft 
LA_- Bony 5-16 7-8 1ft VOught 6-15 (Ml 11 
Robewm b P o rtl and 68 (Grant 11), Lob 
A ngeles 54 (Bony 9). Assists— Porttand 15 
(Anderson 4), Lai Angeles II (Marita 5). 










New Jersey 





















N.Y. latoodets 





















Tampa Bay 

















































COraOna 3 














SL Louis 



























































Los Angeles 



















San Jose 


















110 1—3 
I I 0 1—2 
Pint Period: B-ZMidk I (Ptanta) ft 
CdnBm, Odassan 1 (Brawn, Dtneen) (pp). 



ttiitten ttiA KdumlSaam. Daipxd &nhwauil k DateFSmiA V bfrivaaud IfcrJd Tribm 

_ '971 


Second itotlorfc CraaBoa. Roberts 3 (OH «MQ 
I5c52 (pp). d. B-McKee 1 (Hotdngco Sedan) 
ThW P w f oi fc None. Owritae 4 B-Pawe 7 
(Want Peco) Shots aa goal: B- 7-7-8-2—24. 
Carolina 9-11-5-0—25. GoaHex B-SWrMs. 
Cnudna Barite. 

PtdiodelpWa 1 1 0 8-2 

Washington 0 2 8 8-2 

Fast Period: PMadeipiiia UCtair 11 

(Zobnift Ltadras) Second Period: 
mtadotohta. DesionHns 2 (BAxf Amour, 
KhriQ (sh). a Wbshtagton, KormnWiDk 2 
(Zedrdk. Reekie) 4 W-Johwsson 5 (Oates, 
Houtoey) li49 (pp). Third Pertafc None. 
Overttae: None. Shots on goal: PWadelpMa 

16- 8-1 1-4—39. W- 8-1 1-12*1-32. GaaBn P- 


Las Angeles 1 2 1-6 

Detroit 1BO-1 

Rrd Pvrto* D-Kartov 6 (Ykennaa 
Murphy) Z LXrBoudm 4 (Tsyptakny, 
Atorrny) Second Period: Los Angele* Magar 
l CSturopel H o blta W e ) 4 LA^Peneautt 6 
(Tsyptafems OttonneO) & LA^Peneautt 7 
(Murray) Third Period: Let Angeles. 
Fsnawtt 8 (TsyptafeOK Manny) Shot* on 
goal: Las Angetas 12-11-3— 26, Dettutt 7-10- 
1 1—28. Oedkc LJLfliet D^tadson. 
SanJesa T 1 1-3 

Chicago 3 1 1-6 

Rrsf Period: SJ^GS 4 (Marteau) (pp). Z 
C-Oage 5 (Zhamnov, Moreau) a CMaoga, 
WhBe I CLoflairane, Kriwkmwv) lft34.4 Cr 
Zhamnov 2 (Daze. Chritas) Seaaad Period: 
San Jose, Nolan 2 (Friesaa GW :19 (pp). 4 
GAnante 4 (Dans Carney) TWrd Period: C- 
Amoide 5 (Krlwdrasoto Satat) a S J^Bodger 
Z Shots on gaafc SJ.- 1494-29. C 124 

5- 24 (iTerdtoir: SJ.- Vernon. Harder. C- 


Ednwtaa 0 8 1—1 

Boston 8 2 1-3 

R«t ported: None. Second Period: B* 
Donah 6 (Bovnjua) (pp). £ B-ABson 5 
(KhrisBch, Ettett) Third Period: Edraocdoo, 
McArmnond 3 (Grier) £47. 4 B> Taylor 7 
(Axrissors DiMaio) (en). Strata on goat E- 4- 
7-12-23. B- 18-106—34 Gordies: E Joseph. 
B- Dafoe. 

Va ncou ver S I 0 0-6 

PBMnegb 3 Z t 1—7 

Pinf Prato* Pittsburgh, Strata 4 
UoinnesorO 430 (ah). Z PJOkzyfc 7 
(PnndA Jogi) (pp). X Wncovrai Bov 7 
(OhbtnL Undent (up). 4 V-VOta 1 (WoBwri 
& V-Mratand 2 (Messta: OMend) & V-, 
Ltadeni (HotanVdd I0 sI0l 7.V Mender 
4 (Bure) ft P-Brawn 2 (Baraev Hicks) 1405. 
Secegd Periedb' VancowK Messiers (Bure), 
lft P-FmndS 7 (Johansson. Jogi) IT, P, 
Strain 5 (Jogi; Fnncta) 736 (pp). Third 
period— 1Z PBtsbarah, Maran«v3 (Brawn 
Barnes) (pp). Oi ert ln ra: 1ft P-Bnmn 3 
CBames) Strata nr goW:V- 12-3-43-26. P-9- 

17- 12-4—42. CeaGes: V-McLean. P- 
Banosta Wragget 

L or A n g rie s 1 1 8-2 

M.Y. bleudets 3 1 0-4 

flat Paled: New York. RekM 6 

CJoassan) 139. Z New York. Lapointe 3 

UORSKNV Hompi) ft New York, PaWy 7 
(BeranL Lachance! (pp). 4 UL-Moger 2 
tStorapei RnbBaUe) (pp). Secead Paled: 
Lee Angefaa, RobMdBe 7 (Magee Stooped 4 
New York, PnltTy 8 (Green, Jonteon) (pp). 
IWd Paled: None. Starts or gad: Las 
Angeles 9-12-12-33. New York 8-16-7-31. 

LJU3inboL New VMb Fktotod 2- 
1-1 0331). 

Tenah 8 j a - 1 

M«d«Wi 2 2 1-5 

FttN Period: M-OrtnUl (ScwgnRfchor) 
doOl ft M-Kobru 3 KrasotO Seceiid Period; 
M- Burnet 1 (Matafchov) 4 T-Bvwda 5 
(Konfei* Surefiri) (pp). ft M-, (Setter 4 
(Reada, Corson) 1734 (pp). TIM Paled: 
M-Brend Z (sh). Starts on geafc T- 6-7- 
14-27. M- 6-13*17—36. Garttasc T-Potvta. 

Wettt ia g tog I 8 8—1 

New Jersey 1 1 1—3 

Rr» period: Itel dn g ta n, Zednik 4 
(Johansson, Hunter) Z NJXbpentor 3 
(Rotafan. MadLemt) Seeead Patod: No* 
Jeneyi Eias 6 (McKny, Ho8k) Ttttad Ptrirt 
New Jeney, Sykora 6 (Odetain) £11. SfeaU 
ea geafa WdsNngtoa 8*9-25. NJ.- 166- 

6— 28. Goaflofc VMtantanL NJLefiradsw. 

Beriofo 0 2 11-4 

Rondo 2 0 10-3 

Rrdf PnM F43a*i»f6 (SvettW Z R 
MeBanbyS (Cognen THrhnert (pp). Second 
Pafcrfc Baflato Daew 8 (Peat) (sh). 4 B-, 
Satan 7 (Bram Plante) I2n0 {pp).Tltod 
Period; Pfit2saaU3 (Uidsay)ft ftPeat l 
CHoBnoa) (pc). Oerattnue 7. B-Ward Z 
Start* at pd B-9-7-TM-X. F- 1266- 
0—23. Garths: B-Haeek. F-WeekSft 

o o o-« 

SL Lrato 0 8 2-2 

Hr*l Ported; None. Second Period: Naan. 
TON PaM; SArPwnger 2 (Prthrift 
Canny) 1737.2, SJ_-AWteyrWr»1 (Pronger, 
Conroy) ten). Shota on goafc SJ^ 7-8-9—24 
SJ-r 10-7-6—25. Cerths: 5 J^Hradey. SJ_- 

Cdgary 2 I 1 0-3 

Catorado 2 0 1 0-3 

Rrot Period: C-KanaBkp 6 (Yctte. 
Lefobwe) Z C-Kanensfcy 7 (Foaberg. 
FoaW ft CNaotond 2 (Gavey, Hykrader) 4 
GSMbnan 8 (Md rads. Albefin) Stand 
Period: None. TON Period: CotomtoScddc 
10 (pennity shot) 731 & C-Motris3 (Dowd. 
Cossets) (pp). Oie rttn e ; None. Shota on 
gert: C- 144-16-1-35. C- 9-12-145-40. 
GorthK C-M094 C*Aoy. 


Top 25 Coixeqe Bkiults 

Howttw up 25 teems to The A ssoc ia ted 
Presrco tl e g e toothed poOtorad I n et wee k: 

Ml 1 NefenHfce (8-Q bent Oktahenra 69-7. 
Hood: at Mtosourt. Satorday. No. 2 Penn Stole 
0-0} beat NarttnRstera 30-27. Next vs. Na. 4 
Midegan, Saturday. No. 3 Ftoride state (8-0) 
beat North GeiaBao State 443ft Naefc of Ne.5 
Korto Carofina, Saturday. No. 4 MdriganCS- 
rt beat Mtaaosato 243. Next at Na. 2 Pena 
Stale. Saturday. No. 5 North CceeBaa (M) 
beatGeonda Tedi 76-11 N«t vs. No. 3 Flori- 
da Slata Saturday. 

Ne.6Hartda (42) tostto No. 14 Georgia 37- 
17. Next vs. Vfflxtefbflt Sgtuiday. No. 7 
Washington 0-11 beat Southern Cal 27-0. 
Ned: vs. Ore^n Satorday. Ne.8 TemessM 
CM) beat South CnnSna 22-7. Next vs. No. 
24 Sorttwn Mississippi, Srdmdoy. Up. 9 Ohio 
State (8-n beat No.21 MIcMgan Stole 27-13. 
Neel! at Minnesota, Saturday. Nou 10 WMt> 
torton State (7-T) tostto N& 20 Arizona Stake 
4431 . Nob v*. SW Loutaiana Satantor-. 

Jta. 11 Auburn 0-2) lari to Mfestoslppi 
State 204). Ned; at No. 14 Georgto, Nay. 15. 
No. 12 UCLA 0-7) beat Stanferd 27-7. Need: 
w.NtL7WasMngtoiv Nov. IS. Hu.13 Kansas 
State (7-1) beat Tears Tech 13-2. Neat vs. 
Kmeai, Saturday, fie. 14 Gerefta (7-1) herd 
No. 6 Florida 37-17. Next vs. No. II Aebem, 
Nov. 15. Hol 15 lam (64) beat No. 18 Puntoe 
35-17. Ned: ntWteamdn, Satorday. 

No. 16 LSG C64) beat Kentucky 63-28. 
Next: at Alabaaa. Satorday. No. 17 West 
Vlrgtoto (64) tartto SyraaeedO-ia Next: vs. 
Temple, Nor. 15L Ml l* Perdue (64) tost to 
NtL 15 Iowa 35-17. Ned: n. No. 21 Mfcttgaa 
State, Satotny. No. 19 OttofMaa Stele (64) 
lest to No. 25 Team A&M 2845, OT. Nad: at 
2) beat Ho. 10 Wariitagtaa State 443! . Next: 
at Codforafa Satorday. 

No. 21 IMMjm Stale (54) tostto No. 9 
Ohto Stale 37-13. Netrb'at Net 18 Pimtoe, 
Saturday. He. 22 Toledo CM) beat MkuoL 
Ohio 35-28. Ne± at BaB State. Saturday. No. 
22 Vtrgteio Tech (445 beat Atobana^Iire. 
togtwm 37-fl. Nest vs. Mhmi, Satontoy. No. 
ttOSattrarn M refirtnrl (64) beatOoctanott 
2417. Next: al No. 8 Tennessee Sat ur day. 
Ml 25 Tones ACM M4) bent No. 19 Ok- 
lahoma State 28-25, OT. He* vs. Bayton 


Boston COBege 2ft PtttfbmgtiZl 
Brawn 37, Qmett 12 
Budtndl21. LeMgh 14 
CWunteaZ Holy Cram 7 
CenmxBcatift Baxten 11.7 
Harered 24 Dertaroutti 0 
Pent 2ft Yale 7 
Clenaon 3ft Wcriw Faie*n6 
Louisiana Tccft 2ft Atabaiu 20 
Mkmd 42. AitamsasSL M 
Tnat Souhtem 21, GnanbOng SL 16 
TtrtooeSft SW Louisiana D 
Veginfa 4ft Maryland 0 
Kml 2ft Bowtofl Great 20 
MoBhafl AS. Cent MicMgcm 17 
Notre Dane 21, Navy 17 
Youngstown SL 1ft mMs St 0 
Baylor 2&THM21 
Mta.VUeySi.27, Prairie VtewO 
Now Medco 4ft Terns Qvteflan 10 
Southern Math. 24rRk» 6 
Texas El Pom 14 Brigham Young 3 
Air Ferae 3ft HawaB 27 
CaBfomia 3ft Oregon SL 14 
AUBtouri 41. catorado 31 



New South Wetei:469 far she drtamd 
New Zadand: 214 and 82 (or ime 

neuwoLA vw. wm mm* 

West Indue 237-8 In 5Dmti 
Sri UbEbe 2M-3 In 3M even 
Sri Lonfco won by seiran vrfdteh. 

• - •OMMytttLAIIOIIftPWtanui 
South AMca; 271 In 48 avers 
Pakatarc 262-9 In 50 avers. 

South Africa wun by nine run*. 


Leering econra Sunday ut El mSKon (SI 4 
mOSon) Who Hewer* being ptayed on par- 
72, 7,02 1 ynrd Menee can fa coarea Jerez. 

Lee Westwood, E Ofl. 6547-64-200 

PpdnrfQ Hantngtea Id. 66-7047-203 

Jaw M. OtaznbaL Sp. 66-67-71-204 

Robert KatoemvSwc. 6847-70-205 

Peter O'MaBey.AasIl. 684949-306 

PaWkSfataKtSTC. 6448-74-206 

Marie McNally, Zlm. 6469-73-206 

C Mortganerift Scat. 65-71-71-207 

Eduardo RoawnwArg. 714948-208 

ton Wtoosnam, Wales, 6749-72-208 

Constantino Roan IL 6945-74-208 

After heavy storm early Sunday officials 
dadded to arfl off tt» 4fh round. 

Philip Iorrw 

Leodtog team Swiday hi 200 miflon yen 
(81 3 mftSan) PTrtfa Macrie Tourromenl an 
7,176-yard, par-72 ABC Gait CUb course in 
Kata, Japan: 70-7347-78-380 

KanameYokm Jap. 73-71-7048-282 

Roger Madras AvsM. 7347-73-70—283 

Pete Jardmv U5. 70-71-73-70-283 

K. TdrahasbL Jap. 72-754849-284 

N.“Joe"OZott Jop. 72-7547-70-384 

S. Mamyama Jap. 72-7249-71—284 

Frankie Miaeza PM. 74-73-7069-286 

Toro Sera kLJop. 70-7648-72-286 

H. Tanaka. Jap. 70-74-73-70-287 

EVMizngudftJap. 69-74-73-71-287 

Todd Hamltoa U.S. 70-73-73-71-287 

Tze-demg Chen. Take. 74-7448-71-287 

M-'Jenbo^OzskUap. 71-73-71-72—287 


Briw, Frances. 2ft Pontypridd, Wates, 20 
Letoeeter, England, 9ft Gtasgaw. Scat. 19 
Canffift VWtei 2ft Llaneift Wales, 10 
Bottv Engtand, VS. CanSR, Wotes 
TuetoUM France, w. Horiequira, England 
WaqtH* England, vs. Brive, France 
Pan. France, v*. Lricaster. England 
Matches to be ptayed an November 8 or 9. 

Argentina lft Australa 23 



senjinw m lomdon 
A estntta 3& Great Sritaai 14 




RandKaCfaHci (1), Spain del. Eitillfa JU- 
WBTC. Spain, 74 04-12), 2-ft retard 
■ p P' ^ SBn 9 tf ^ n rtft Italy. (W.JonUBuilBft 
Spate, ftft'6-3. 

VtocentSpadea,U&,tkl Fernando MeO- 
gent (B), Bitafl, 7-Si, 74 (86). 

NtehotaE Lapenftl Ecuudoc def. Carlos 
CMto (6), Sprtn, 7-ft 44u AG. 


Oovrt det Scmguinrtll Aft 6-7 am. 74. 

LflpwiH def. Spadea6-Z 7*5. 

RfMftta. FRANCE 

Thomas EnquW (IS), Sweden def. Guil* 
faOIM Raouft Frtmcn 7-5, 6 - 2 . 


Pete Sampras .0), US, dot Yevgeny 
KhWnfcw(5)»R#ssia,74 ^ 

Janas Bjeriiman (12), Sweden rtetEnqvt3t 

74 (74), 74 


Sampras dd Biarianm 64 44 6 -ft 6 - 1 . 


Jana Nonbia (1), Credi Republic. tteL 
Concbita Mariner (41, Spain, Aft at. 

AI Seglyama, Japan Oct DamWoue Van 

Roesft Belgttmv 6-ft 4ft 6ft 


Novefea def.Sugiyama Aft 6ft 


«mw wiwbi imw 

Evarton ft Southampton 2 
Aston VWa ft Chelsea 2 
Baimley 1, Blackburn 1 
Bolton T. Liverpool 1 
Derby ft Arsenal 0 

Marwiestar United ft Sheffield Wednesday I 
Newcastle ft Leicester 3 
Tottenham! Leeds 1 
Wimbledon 1, Coventry 2 
vTANDMaw: Manchester Uratad 28 
points Arsenal BtocMam 2* CheHea, Le- ■ 
icester 2ft Derby- Leeds 2ft Liverpool lft 
Newcastle 17; Wimbledon Wwl Han 
Cavenhy 16,- Crystal Palaca 1 5; Aston Villa lA;' 
TaKflihani, Southampton 13; Everton. Belton 
lft Bomstoy lft Sheffield Wednesday 9. 


Didsbuig 4 Borusslo Moenchengladbodi 5 . 
Banana Dortmund Z FC KatoenJoutotn 2 of 
Baywr Leverkusen Z Vtt. Wodshwo T ™- 

KnrtsrvherSCl FC Cologne 1 
Wenter Bremen ft Hertaa Berlin 2 
Homo Rostock Z VfL Bochum 2 
1860 MwiEh 2, Bayern Munich 2 
AmtWa BtoWeld Q Hamburg 5V 3 
uwuiPW W r FC Krtsenlautefn 3Q- 
P«*ds Bayern Munich 24 Schalke Of 2ft 
Hama Rostock Zl;VfB Stuttgart Bayer Lev-' 
erkusev Hmbuiger SV 19; Maendwngtad- 
DocttVfl.WMMbuiftMSVOuUurg 17:1560' 
Munich lft Armtatia BlefefeM. KartsrvherSG 
Wenler Bremen IS Boroesto Dortmund 14 
Cotogae 1ft VfL Bachumr Herttw Betttn 11 

Ofympiqiie Lyon I, Paris St Germain 0 
Lens 1, Metz 1 

Gtyropique Marseille 2, Chimes 0 
Strasbourg I, Auxene 1 

En Arrant ISuIngampl, Monaco 2 
Le Havre Z Sastial 
Narries 3, Choteouroux 1 

BTMieMSi PSG 30 pototK Metz, i , 

seiBe, Bordeaux 27; Monaco 2ft Auxene 
Lens 2ft Bastfa, Lyon Toulouse 7ft Mont-' 
peBer 17; Nantes 14 Gubngamp IS; Stras- 
bourg 14 Rennes lft Le Havre ChateauraM 
lft Cannes 8 

. J ■ 

Real Betts 2 Attotko Madrid 3 
VdlkMoM 0 MaHorea 0 
Atttlelic BRbao 3 TenerifeO 
Real Madrid 2 Barcelona 3 
Espanyol 3 Safamanca 0 
Oviertoi Deporihro Coronal 
Celto Vigo 1 Sparring Gtfon 0 
Coreposteta 3 Radng Santander 1 
OTAMSMoek Barcelona 2& Esoanyol lft - 
Real Madrid, Cetto lft AneficoMnd. 17;Mat- 
tonto, Real Sadedad le- AlMeflc BOb. 14 8e- 
ralftOriedo. Tenerife 11; Compostela Zam- ‘ 
wan, Racing lft Deporihro ft Valencia, Miri- 
rid- VttfladoUd ft Sa ta mmicn 4 Sparring I. 

Atatanta Bertpimo f, Vknua3 

EmpcS 2, Bari 3 
Leax ft Brescia D 
PtooemoO, Rarontl n aO 
Sam Morin ft ACM Bon J 
Inter iMUan 1, PamtoO 
Jurento$4, (/(finest - 1 
AS Romo 1 . Larta 3 
TAw ontcte inter 19 pains Juventosl-, 
™mo 14 Roma 12; Lor to, Sampdorto. VI- 
™ Uf Atatanta, Brescia. Udlncse lft AC| 
Wtatt Ftarentaia ft EmwA Bari 7; Botogtia. 
Lpcco 4 ; Napail 4 Plcccnia 3. 


vw "»«fam a Utrecht 1 
^WoofdZ RteC WdaMkl 
Fottono smart I), NEC Niirwgen 2 
Twmto Enschode 1 , VRnseAnrhem 1 
NACB rodnftGfagttctiapDoerinchMHP 
1* PSV Eindhoven I 
MW Maastricht l, wiltora II TUxngd 
*T«omaf: A|ax Amsterdam 34 potato; 
raVEMdfwvrm 2 ft He cw nvoon 2ft FWt»- 
Vhesse Arnhem 22; TwmfcEnsdtede 
JC Kortunde lft Graqiscba p Doel- 
NEC Nfanegon 1 * MAC BmtoSpei- 
7*^*™ ISiCranlngen, Fortono StttoM 
Wtttom II TUurg lft Utrecht It; RKC 
Woalw <*‘ lft Maastricht 7; VWondam 6 . 
I Hearts 4 

punfatmflrie Affrtetlc 0 Ceffic 2 
nmerritaBl Dundee "United 3 
N widtn. 4 Kftnantock I 
“f Johnstone 4 MotoenwU 3 

World Cup 


e_|,n. „ 8E “"OROU|ID,0«aUPB 
Korcoft JnponI 

unned Arab Ententes ft uawWdrmO. 

•WuemiHM, South Korea 16 potato; 
r?™ ,ct Arab Eralrasw ft Kara- 


-•if 1 - 






: -*r- ■ 


PACE 19 


* ^ %ia anner ®* ses and Bulls Rebound 

® Chicago Shakes Off Opening Loss to Celtics by Drubbing the 76 ers 

¥ ^5“ -tr-Sr 

c? • JrHz-jr 



^ Jwiifcj. 

¥*t* r ** r 


wS-' ?£■>- 

5t=i: iiL. •■ 

««■ f : T- 


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■: V 



► % T r^V 


W |Sw.'-r. 

* W' -•- • 


• . - 77ir Associated Press 

'■£■ Chicago Bulls recovered from a 
' season-opening loss and celebrated the 
•■v unveiling of their fifth championship 
■;£ banner by bearing the Philadelphia 
• 76ers, 94-74, In Chicago. 

•: : v> Ron Harper had 17 points and eight 
assists and Michael Jordan scored 16 
. ‘ *J r : points in 24 minutes for the defending 
. * ' 1> ,r NBA champions, who used a balanced 

• NBA Robnddp 

attack Saturday night to compensate for 

the absence of the injured Scottie Pip. 
Vi-, pen. 

' . - Jason Caffey added 14 points and 
' v-A Dennis Rodman had 13 rebounds as 
. Chicago came back from Friday’s loss 
■ ;; '*?, .in Boston to beat Philadelphia for the 
: .'V ')J6th straight time. 

•<VO> Timberwolvee 106, Hornets SO 

. Siephon Marbiuy had 23 points and 13 
- .. assists and Kevin Garoea keyed a de- 
. cisrve third-quarter rally as Minnesota 
beat Charlotte. 

1 >.V Garnett fi n ished with 18 points and 
.■*2* eight rebounds, while Tom Gugliotra 
. - )<>. added 20 points. Cherokee Parks had 14 
points and 13 rebounds. 

; ->o Hawks 90, Raptors 65 In Atlanta, the 

' ; Hawks foiled to sell out their home 
T .- '-ii*. opener at Georgia Tech’s 9300-seat 
arena, but they stayed unbeaten against 
Toronto. Atlanta is 14-0 against the 
- *v Raptors, including preseason games. 

V Alan Henderson, who scored 20 in 

- ~-Ciy . Atlanta’s opener, came off the bench to 

y 'core 17 points. Dikembo Mutombo ad- 
‘.-^.yded 18 points and 12 rebounds and 

- Steve Smith had 17 points. 

Moat 109, wizards 108 Tim Hardaway 
--:i? drove the length of the court and hit a 

nmning 12-foot jumper at the buzzer as 
Miami, after blowing an 18-point lead, 
won in Landover, Maryland. 

A twjsting lay-up by Rod Strickland 
put Washington ahead with 5.3 seconds 
to go. Hardaway then took the inbounds 
pass, dribbled up foe left side of the 
court and let loose with a 12-foot shot 
that hit nothing but net, leaving foe 
crowd of 18,291 at foe Wizards’ home 
opener in stunned silence. 

Eeeer* 96, W m i i o» » 63 In Indiana- 

polis, Larry Bird earned his first victory 
as an NBA coach. Reggie Miller scored 
33 points for Indiana and Rflc Smits 
added 23 points and 12 rebounds. 

Latrell Sprewell, who scored 45 
points Friday night at Minnesota, led 
Golden State with 25. 

Spur* 83, CbvbBms so In San Ant- 
onio, David Robinson and 71m Duncan 
made big plays late in the fourth quarter 
and Avery Johnson scared five points in 
foe final 1:25 as San Antonio defeated 

Jazz 102 , Mussets 84 Karl Malone 
scored 24 points and passed the former 
Nugget Alex English on foe NBA career 
scoring list as Utah beat Denver in Salt 
Lake City. Malone, who did notplay foe 
fourth quarter, became the ninth-lead- 
ing scorer in NBA history. Malone now 
has 25,636 career points. 

Nets 113 , bucks 109 Chris Gatling’s 
fadeaway jumper with eight seconds left 
in regulation tied the game, and his five 
points in overtime helped seal New Jer- 
sey's victory in Milwaukee. 

Ilinreriefcs 89, SuperSooics 81 Khali ri 

Reeves scored 12 of his 16 points in foe 
fourth quarter and Dallas erased a 13- 
point deficit in foe f inal five minutes to 
win in Seattle. 

Jordan Plays Down 
Team’s Shaky Start 

The Associated Press 

BOSTON — In his character- 
istic confident fashion, Michael 
Jordan played down his team’s loss 
to Boston on Friday night 

“One garnc doesn’t mean we 
won’t win our sixth champion- 
ship,” he said, “so I advise you not 
to jump to conclusions. ” 

The Celtics rallied after foiling 
behind by 20 points in foe first 
quarter to beat the Bulls, 92-85. It 
was Chicago’s first season-opening 
loss with Jordan on the. foam since 
1990. Boston, which broke an 11- 
game losing streak against the de- 
fending NBA champions, was led 
by Antoine Walker with 31 points. 
Jordan scored 30 for foe Bulls. 

OrizzOM 97, Kings 96 In Vancouver. 
Bryant Reeves jammed home a rebound 
with 2.7 seconds remaining to give Van- 
couver the victory over Sacramento. 

1MI Bhnn 62, Clippers 74 Kenny 
Anderson scored 10 points in the final 
four minutes to lead Portland to victory 
in Los Angeles. 

Portland trailed, 70-65, with five 
minutes to go, but a basket by Rasheed 
Wallace and two driving lay-ups by 
Anderson put the Trail Blazers ahead, 
71-70, with 3:30 left Anderson then 
added a pair of jumpers and two free 
throws to finish foe game with 20 

• ■ .-V- 


iM* r - 
' * &-.r* . 

|m* v 

m r‘ '»■* 

It’s the Slap Attack, as O’Neal Erupts 

On^jdfd ty Oor Sufi Fmm Dispar ka 

INGLEWOOD, California — The 
Los Angeles Lakers' center. Shaquille 
y.f’ O'Neal, floored foe Utah Jazz's center, 
" Greg. Ostertag, with an open-handed slap 
even before foe NBA season started. 

O’Neal hit Ostertag between foe two 
foams’ practice sessions Friday. The 

* vlazz were taking foe court; foe Lakers 
. * ere leaving- “Hey, Ostertag!” O’Neal 
' ~ shouted to his Jazz counterpart. 

Ostertag had criticized O'Neal for a 

- . lack of class after last season’s playoff 

series between the Lakers and foe Jazz. 

■ O’Neal had responded recently by call- 

- ing Ostertag a “scrub.” 

The two met on the southwest comer 

of foe Lakers' home court: the 7-foot, 1- 
inch (2.2 meter), 315-pound (143 kilo- 
gram) O’Neal; foe 7-root, 2-inch, 279- 
pound Ostertag. 

After an exchange of insults, O’Neal 
hit Ostertag, knocking the Utah center to 
the floor and knocking out one of his 
contact lenses. 

O'Neal stepped back and cocked his 
hands as if preparing for a counterattack. 
When it was obvious that Ostertag was 
not going to offer one, O’Neal’s body- 
guard ushered him away. 

“1 was shocked,” Ostertag said. “It 
was in foe heat of foe moment I didn’t 
expect what happened to come from 
him, bat it’s something you can't 

change now.” Del Harris, the Lakers’ 
coach, called ir “a minor incident, ap- 
parently. There was no damage.” 

The confrontation occurred just hours 
before the lakers beat the Jazz in foe 
season opener for both teams. Ostertag 
scored two points. O’Neal did not play 
because he is still recuperating from an 
abdominal muscle injury. 

John Black, foe Lakers' public-re- 
lations officer, said O’Neal had apo- 
logized to foe team's executive vice 
president, Jerry West, Harris and foe 
team’s general manager, Mitch 
Kupchak. Black said O’Neal would 
speak to Ostertag “when he gets foe 
■opportunity.” ( LAT.AP ) 

■jhjrifr' -«■. 


Two Underdog Bulldogs Show Teeth 

Georgia Chews Up the Gators While Mississippi State Mauls Tigers 


iMWS sYjW: 

>.v- *• 


The Associated Press 

On a great day for Bull- 
.. dogs, G«>rgia and Missis- 
. . . sippi State turned the Soutb- 
eastern Conference into a 
- mad scramble. 

Robert Edwards tied a 
school record with four 
touchdowns as No. 14 Geor- 
“.V. :v ja ended seven years of frus- 
tration against No. 6 Florida 

: CouioiFoon/ut" 

with a 37-17 victory over the 
SEC champion. Mississippi 
State shutout No. 1 1 Aubum. 
^ The SEC upsets left No. 8 
Tennessee (6- 1 overall and 4- 
1 in conference play) — 
’ •• which beat South Carolina — 
in control of foe SEC East, 

• with Georgia (7-1, 5-1) right 
behind. Mississippi State (6- 
2, 3-2) beads the SEC West- 

. The series had been so one- 
:^ed that the 37 points were 
Me most by foe Bulldogs since 
Herschel Walker led thean to a 
'■ 44-0 victory in 1982. 

ICissiMippi Stata 20, Mo.1 1 
Auburn o Anthony Derricks 
scored on a 90-yard inter- 
‘ • ception ^ return — one of four 
interceptions by foe Bull- 

y No. 8 Ibnnassea 22, South 

Carafina 7 In Knoxville, Ten- 
nessee, Peyton Manning had 

' his worst outing in three years, 

. completing just 8 of 25 passes 
for 126 yards, but foe Vols got 
. 205 yards and two TDs from 
' freshman Jamal Lewis. The 
■ Gamecocks (5-4, 3-4) man- 
aged just 168 total yards and 
foe Vols made eight sacks. 

No. 1 Nobraokh «9, OU» 

' honui 7 In Lincoln, Nebraska, 

S jsive end Grant Wis- 
forced three fumbles, 
zered one and had two 

sacks as the Huskers (8-0, 5-0 

Big 12) handed foe Sooncrs 
, their worst loss ever. Last 
year, Nebraska beat Oklaho- 
j/raa 73-21, which was, until 
’ Saturday, Oklahoma’s worst 

He. 2 Ponn St*te 30, Nortb- 

27 The Big Ten will 
get foe matchup of nnbeatens 
it wanted — Michigan (8-0, 
A 5-0) at Penn State, <7-0. 4-0) 
m In Evanston, Illinois, 

I ] Curtis Enis ran for 153 yards 
l J and a TD and Anthony 

iMa Drl«a^Bnam 

USC’s Rashard Cook leaping to make an interception. 

*■1} towed two late scores uo 
se ating the victory by cecov- 
taring an onside kick. 

* ram State extended the 
j longest winning streak in Di- 
n||i vision I-A to 13 
“s Northwestern fell to 3-7, l- 

No. 4 Michigan 24, Mbi- 

i m> tii ii 3 In Ann Arbor, 
Michigan, Charles Woodson 
scored on a 33-yard reverse, 
and Michigan's defense held 
Minnesota to 102 total yards 
and no second-half points. 

No. 3 Florida 9tX» 48, 
North Carolina State 35 In foe 

Atlantic Coast Conference, 
another battle of nnbeatens 
was set after No. 3 Florida 
State beat North Carolina in 
Tallahassee. Next Saturday, 
the Sermnoles (8-0, 6-0) visit 
No. 5 North Carolina (8-0. 5- 
0), which beat Georgia Tech, 
16-14, last Thursday night 

Thad Busby threw for five 
TDs and a career-best 463 
yards. Florida Slate had 517 
yards but allowed 448 yards 
and 28 first downs. Tony Holt 
caught five TDs for North 
Carolina State (3-5. 1-5). 

No. 7 Washington 27, 
Southern. CafifomiA 0 In 

Seattle, the Huskies (7-1, 5-0 
Pac-10) shut out foe Dnojans 
(4-4, 2-3). Brot * Hn f d 
passed for two TDs for 
Washington in the second 
quarter before leaving with a 
sprained ankle.- 

No. 9 Ohio Sta**® 7 , Mi* 
Michigan state In East Lans- 
ing, Michigan, Gary Betry 
returned an interception 45 
yards for a score, then picked 
hp a Hocked field goal and 
scored from a yard out to lead 

die Buckeyes (8-1, 4-1) over 
foe Spartans (5-3, 2-3). 

No. 20 Arizona **»*» 44, No. 
10 Washington 8» « -In 

Tempe, Arizona, Ryan Kealy 
threw four touchdown passes 
as Arizona State spoiled foe 

Coagars’ (7-1, 5-1) un- 
defeated season. Arizona 
Sate (6-2, 4-1) forced Ryan 
Leaf to fumble twice in foe 
final three minutes and turned 
both recoveries into scores. 

No. 1 2 UCLA 27, Stanford 7 

Skip Hicks ran for 121 yards 
and three TDs, tying his 
school record of 20 touch- 
downs in a season, as UCLA 
(7-2, 5-1 Pac-10) forced four 
turnovers and had six sacks to 
win ai Stanford (4-4, 2-3). 

No. 13 Kansas state 13, 
Tnn Tftch 2 In Lubbock, 
Texas, Jonathan Beasley ran 
33 yards for a TD with 3:05 
left to give foe Wildcats (7-1, 
4-1 Big 12) foeivictory. Kan- 
sas State crossed midfield 
only once, but held the Red 
Raiders (4-4, 3-2) to 117 
yards and six first downs. 

No. IS Iowa 35, Mo. 18 

Hawkeyes (6-2, 3-2 Big Ten) 
ended foe Boilermakers’ six- 
game winning streak. ' 

' No. 16 LSU 63, Kentucky 28 

In Lexington, Kevin Faulk 
rushed 28 times far 212 yards 
and a school-record five 
touchdowns as the Tigers (6- 
2, 4-2 SEC) rolled up 613 total 
yards. Tim Couch was 41 of 
66 for 410 yards and four TDs 
for foe Wildcats (4-5, 1-5). 

Syracwo 40, No. 17 Wost 
Virginia io In Syracuse, New 
York, foe Orangemen (6-3, 
3-1' Big East) won their fifth 
in a row. 

No. 25 Texas A&M 28, No. 
19 Oklahoma State 25 At 

College Station, Texas, foe 
Aggies (6-2, 3-2 Big 12) 
forced . overtime with 15 
fourth-quarter points, and 
D’ Andre Hardeman scored 
on a 6-yard run in the first 
extra session to beat foe 
Cowboys (6-2, 3-2). 

No. 22 Totodo 35, Miami, 

OMo 28 Io Toledo, Ohio, 
Chris Wallace threw for 364 
yards and four TDs, including 
an 1 1-yarder to Brock Kreitz- 
burg with 24 seconds left as 
the Rockets (8-0; 6-0 MAC) 
beat Miami (6-3, 4-2). 

No. 23 Vwginia Tech 37, 
Atabwna-Bimtlnghani O In 

Blacksburg. Virginia, foe 
Hokies (6-2) allowed the 
Blazers (3-5) just 65 yards. 

■ Harvard Climbs Ivy 

Harvard (6-1, 4-0) shut out 
the defending Ivy League 
champion Dartmouth (5-2.3- 
1) to take over first place in 
foe league standings. The 
score was 24-0, foe New 
York Times reported from 
Hanover, New Hampshire. 

Dartmouth, whose 22- 
game unbeaten streak ended 
against Lehigh a week earli- 
er, lost to an Ivy foe for the 

Purdue 17 In Iowa City, foe tret time in 15 games. 

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The Mavericks* Shawn Bradley, left, getting the most out of his height as 
he pulls down a rebound over the SuperSonics’ Gary Payton. 

NBA Crosses 
A Rubicon 
With First 
Female Ref 

The Associated Press 

VANCOUVER — Violet Palmer 
walked onto the court and made Na- 
tional Basketball Association history. 

Everyone knew a female referee 
would be officiating a regular-season 
game in a North American ali*mak 
league for foe Fust time Friday night, but 
it wasn’t known whether it would be 
Palmer or Dee Kautner. The answer 
came before the Dallas-Vancouver 
game, when Palmer emerged from the 
dressing room. 

“It’s certainly a historic night,” said 
Rod Thom, an NBA vice president who 
was at GM Place in Vancouver to watch 
a female official work a regular-season 
game for the first time in NBA history. 

When referee No. 66 walked onto foe 
court 15 minutes before tip-off, the mu- 
sic was thumping so loudly on the pub- 
lic address system that she couldn't 
have heard the crowd’s reaction had 
there been one. When her name was 
announced, there was no response from 
the crowd. And before long, fans were 
booing her just as they would anyone 
else in stripes. 

Shawn Bradley, the Dallas center, 
said that having women on foe court 
might bring some improvement in play- 
ers’ manners. “That’s good,” he said. 
“A lot of us need that.” Dallas woo the 
game. 90-88. 

“I think guys were kind of scared to 
say the same things that they would to a 
male referee,” said Vancouver’s 
Shareef Abdur- Rahim. “I’ve got a 
mother and sisters, so 1 don’t want to say 
anything to a woman ref that I wouidn ’t 
say to them. They’d probably call and 
give me a bad lime if 1 said something 
bad to her.” 

Bradley said that players always have 
to adjust their behavior to foe person- 
ality of each official. “Now we’ve got 
those old female emotions in there as 
well.” he said. “There are some things 
that guys say. guy to guy. that if it was 
saidlo a woman, it could be offensive. 
So a guy’s got to watch it. If they say 
something like that, she doesn't like it 
and calls a technical. You’ve got to 
accept it” 

Not everyone liked every call Palmer 
made or didn’t make. The Dallas coach, 
Jim Cleamons, was especially unhappy 
with two quick fouls she called against 
Bradley and Dennis Scott late in foe 
game. “In my opinion,” Cleamons 
said, they were “nonvetenm” calls. 

His Italy against Russia again as Lsaao at lake on Rotor 

Volograd in the U^FA Cup; who will come out on top this &me t 

4-6 November, UVE, UEFA 
Cup and Cup Winners' Cup 

Lazto will be confident of 
making progress through to 
the next round after they drew 
0-0 in Russia in the first leg 

4-9 November, UVE, ATP 
Stockholm and Moscow 

As well as two valuable tour 
titles, this week also sees the 
final battle to achieve enough 
rating points to qualify for next 
weekls World Championships 

7-9 November, LIVE, The 
World Championship, Paris 

The giant Bercy Stadium 
hosts the second to the 
fourth round of the World 
Championship season 

8 November, LIVE, The 
Volvo World Cup, Brussels 

The top riders in the world 
meet In Belgium to contest 
the latest round of 
the championship A 

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PAGE 20 


World Roundup 

The Ramin Spain 
Helps Montgomerie 

golf Colin Montgomerie won a 
record fifth consecutive European 
Tour money title Sunday ana left 
people wondering if he would be 
around next year to make it six. 

Rain washed out the final round 
of the Volvo Open in Jerez, Spain, 
on Sunday. Montgomerie finished 
on his 9- under-par three-round 
total of 209, three strokes ahead of 
the two men who could catch him 
in the European Order of Meric 
Bernhard Langer and Darren 

Lee Westwood of England won 
the tournament with a 16-under- 
par total of 200, three strokes bet- 
ter than Padraig Harrington and 
Jose Maria OlazabaL 

“I don’t think that this is a 
chapter coming to a close,' ’ Mont- 
gomerie said afterward. 

That seemed to contradict in- 
dications he gave earlier in the year 
that he would join the PGA Tour in 
the United States full time in 1998 
if he won the money title. (AP) 

Double for Kenyans 

marathon John Kagwe of 
Kenya ran a near-record time Sun- 
day to win die New York City 

"I think it's great," said Kag- 
we, who wore sunglasses despite . 
foggy, overcast and wet condi- 
tions and finished in 2 hours, 8 
minutes and 12 seconds. Another 
Kenyan, Joseph Chebet, finished 
second in 2:09:27, four seconds 
ahead of Stefano Baldini of Italy. 

Kagwe, running alone in the 
rain for the final two miles (3.2 
kilometers) in Central Park, fin- 
ished 11 seconds off the course 
record set by Junta Ikangaa of 
Tanzania in 1983. 

Franziska Rochat- Moser of 
Switzerland won the women’s 
race in 2:28:43. Colleen de Reuck 
of South Africa was second, 28 
seconds behind. Anuta Catuna of 
Romania, the defending champi- 
on, finished fourth, while Kenyan 
Tegla Loroupe, a two-time cham- 
pion, placed seventh. 

Rochat-Moser, 31, is a lawyer 
and owns a gourmet restaurant 
near Lausanne, Switzerland. 

• Another Kenyan, Sammy 
Korir, ran away with the Ams- 
terdam Marathon on Sunday, win- 
ning in an impressive 2:08:24. 

Kamel Ziani of Morocco was 
second in 2: 10: 18, and Andres Es- 
pinoza of Mexico, the pre-race 
favorite, was third. 

Elfenesh Alemu of Ethiopia 
won the women's race in 
2:37:36. (AP, Reuters) 

Pakistan Loses 

cricket Shaun Pollock took 
three Pakistan wickets in his first 
over Sunday, but South Africa still 
struggled to win the one-day in- 
ternational in Lahore. 

South Africa batted first and 
was all out for 27 1 runs in the 48th 
over of the 50-over match. 

When Pakistan batted it lost its 
first four wickets for just nine 
runs, but fought back to reach 263, 
losing by just nine runs. (Reuters) 

Inzamam ul-Haq of Pakistan 
losing his wicket for 85- runs. 

Sore- Armed Sampras - 
Prevails in Paris Open i ( | ; hii 

* V rv • '4 p j * 

Bjorkman of Sweden Goes Down in 4 Sets 

JjMm Mrni/nH* laorlikd hna 

An drey Fyodorov of Uzbekistan, left, battling with Jasim Jasim of the United Arab Emirates in a 0-0 draw. 

GwpM bt Our Saff ftwn ft** fc* - 

PAWS — Even with a sore arm, Pete 
Sampras was too good for the field at the 

Paris Open. ' „ , 

He beat Jonas Bjorkman of Sweden 
in four, sets in the final Sunday to close 
in on his fifth consecutive annual No. 1 
ranking and give himself a potential 
edge for the U.S. Davis Cup final 
against Sweden. 

Sampras gained his seventh Due of 
die year ?nrl 51st of his career — the 
most of any active player — with a 6-3. 
4-6, 6-3, 6-1 victory. ’ 

If S ampr as fails to win another match 
this year, Pat Rafter could take the ATP 
No. 1 ranking. Rafter would need to win 
the Stockholm tournament this week 
and then win all his matches at the ATP 
Tour World Championships. 

“Five years in a row,” mused 
Sampras. “I’m surprised. It's hard to 
stay on top for so long in any sport, 
especially tennis with all theyoung guys 
ooming up.” 

Sampras was bothered all week by a 
sore arm caused by serving with tight 
racket strings: X-rays taken Friday re- 
vealed no damage. '‘My arm was tired 
and sore, but I knew that going into the 
match," he said, "ft's something that 
was uncomfortable and I had to play 
through it.” 

Even with a sore arm, however, 
Sampras was too much for Bjorkman. 

ift' :llr 




Sampras will probably race; Bjork- 
man, Sweden's top player, in the Davis 
Cup final in Gothenburg lata* tfo s 
month. “I'm . looking forward K> it." 

Sampras said. 

In the race for qualification for the 
season-ending ATP Tear World Cham- 
pionships that begin in Hannover, Ger- 
many, on Noy.- ll,. tour players w* 
already in: Sampras, Bjorkman, Mi- 
chael Chang md Rafter. 

Greg Rusedski has almost certainly 
qualified; only an exmratfinary set of ‘ f« r \ ; 

losses in upcoming tournaments to 
Stockholm, Moscow and Santiago 
would oust him. 

Carlos Moya, : Sctst - Brugucra. 

Thomas Muster. Alex Corretja. . Gust- 
avo Kuerten, Marcek) -Rios, Ycvgeoi 
Kafelnikov, Petr Korda and Felix Man- 

■ \llun 

ilUa all arc playing this week. The top ' 
scorers will nil out the other spots in the 


eight-man field. •_ (AP. Reuters) 

■ Norotna Wins Kremlin Cup 

Top seeded Jana Novotna over- 
powered Ai Sugiyoma of Japan, 6-3, 6- 
4, on Sunday to win the Kremlin Cup, 
Reuters reported from Moscow. Tne 
Czech’s strong service and powerful 

ground strokes proved too much for 


Whenever the American was struggling 
‘ : increased the 

A 0-0 Draw Produces Two Winners 

Mexico Sews Up World Cup Place, United States Ends Losing Streak 

CatqOrtllN OwSugFnw DhpMhrs 

Seventeen times, die United States 
had played against Mexico in Mexico 
City. Seventeen times; the United States 
had lost 

On Sunday it broke that streak with a 
0-0 draw in a World Cup qualifying 
match against Mexico. It was a good 
result for both teams. 

The top three teams in the regional 
group will qualify for the finals. The 
draw ensured that Mexico, which leads 
the group, will finish in the top three. 

The Americans, struggling to qualify 
for the 1998 World Cup, tightened their 
grip on third place. They lead El Sal- 
vador by two points with two rounds of 
matches to play. 

"Thank God we at least woo one 
tint,” said Steve Sampson said, the 
1. coach. 

“I think anybody would be happy 
with one point coming to Mexico,’ ' said 
Eric Wynalda, a U.S. forward. "It’s a 
very difficult place to play. ’ ’ 

In 17 previous games in Mexico City 
since 1937, Mexico had outscored the 
United States, 69-13. 

The Americans played the final 58 
minutes a man shore Defender Jeff 
Agoos was ejected for elbowing Pavel 
Pardo in the neck. 

Mexico dominated play but its shoot- 
ing was so often inaccurate that Brad 
Friedel, die U.S. goalkeeper, enjoyed a 
relatively calm afternoon. 

Thomas Dooley, the U.S. midfielder, 
had the best scoring of the game, hitting 
the post in the 33d minute with Mexico 
goalkeeper Jorge Campos off his line. 

asia Japan's chances of reaching the 
World Cup finals improved while those 
of its chief rival, the United Arab Emir- 
ates, faded after a pair of surprise re- 

The UAE was held to a 0-0 draw in 
Abu Dhabi by Uzbekistan in an Asian 
Group B qualifying match Sunday, los- 
ing ground to Japan, which won in 
South Korea on Saturday. 

The winner of the group qualifies 
directly for the Cup finals in France this 
summer, while the second-place team 
must face a playoff wmrr.h against the 
runner-up in the group. The loser of that 
playoff will have one last chance to 
qualify for France in a subsequent play- 
off against Australia. 

South Korea has already secured first 
place in the group, so the UAE and Japan 
are competing for second-place. Japan is 
now second, one point ahead of the UAE. 
Both t e am s have one group match left: 
UAE visits South Korea next Saturday, 
Japan hosts Kazakhstan the next day. 

On Saturday, in Seoul, South Korea 
bear its co-host for the 2002 Tournament, 
2-0, with first-half goals by Hiroshi 
Nanami and Brazilian-born .Wagner 
Lopes in front of 70,000 fans in 
Olympic Stadium. 

brain Joan Eduardo E snakier scored 
twice as Espanyol beat Salamanca, 3-0, 
to climb into second place in the Span- 
ish first division. 

ons’ League match against Manchester 

Feyenoord’s Argentine duo of Patri- 
:io Graff 

Nicolas Ouedec put Espanyol ahead 
naiaer then 

in the 18th minute. Esnaiaer then gave 

World Socccr Roundup 

Espanyol a 2-0 advantage in the 60th. 
Three minutes later. Esnaider made it 3- 
0 on a penalty shot 

Espanyol is six points behind its 
neighbor, Barcelona, which won 3-2 at 
Real Madrid on Saturday. The Brazili- 
ans Rivaldo and Giovanni and the ex- 
Madrid player Luis Enrique scored the 
goals for Barcelona 

England Southampton won, 2-0, at 
in its first 

Evertoo to gain its first Mints away 

from home this season. Southampton 
had lost its first five away games. 

Matthew Le Tissier, an England in- 
ternational, put the Saints ahead with a 
header after 24 minutes. It was.his first 
league goal of the season in only his 
third league match back after an in- 

Kevin Davies wrapped up the points 
with after a solo run that started inside 
his own half in the 54th minute. Davies 
powered past five defenders before 
shooting past the veteran goalkeeper 
Neville Southall. 

Southampton rose out of the bottom 
three places for the first time since Aug. 
28, climbing to 16th in the 20-team 
Premier League while pushing Everton 
down to 17th. 

Manchester United, the defending 
champion, moved four points ahead at 
the top of the Premier League on Sat- 
urday with a 6-1 victory over Sheffield 
Wednesday, which slipped to last. 
Second place Arsenal lost for the first 
time dus season, 3-0 at Derby. 

In Manchester, Andy Cole, who hit a 
hat-trick seven days earlier when United 
beat Barnsley, scored twice. Ole Gunnar 
SoLskjaer and Teddy Sheringham also 
scored two each. 

Netherlands Feyeaoord ended a 
run of four successive defeats with a 2- 1 
victory over RKC Waalwijk in the 
Dutch first division Sunday. 

Feyenoord, which fired its coach, Ar- 
ie Haan, on Tuesday and is still without 
a replacement, needed the victory to lift 
morale before Wednesday's Champi- 

cio Graff and Julio Cruz put the Rot- 
terdam dob ahead, 2-0, before Carlos 
van Wanrooy claimed a late goal for the 

John Metgod, a former Feyenoord 
player, has men temporary charge of 
coaching at the club, which is fourth 
place in the standings, 1 1 points behind • 
die league-leading Ajax, which drew, 1- 
1, with Roda JC on Thursday. 

Italy George Weah scored twice and 
Christian Ziege added a third as strug- 
gling AC Milan beat Sarapdoria, 3-0, on 

The teams were tied, 0-0, when 
Sampdoria’s sweeper, Sinisa Mi- 
hajlovic, was sent off for his second 
yellow card in the 68th minute. 

Within six minutes, Milan was ahead 
as Weah tamed home Demetrio Al- 
bertinj’s cross for his first goal of the 
season. Weah added a second in the 80th 
minute before Ziege scored his first goal 
in Italy since joining Milan from Bayern 
Munich over the summer. 

Emanoele Pesaresi completed a 
miserable day for Sampdoria when he 
was sent off in the dying seconds. 

Ronaldo kept Inter Milan atop Serie 
A. He scored the only goal in a 1-0 
victory over Parma, which started the 
day in second place. Juventus, which 
beat Udinese, 4-1, replaced Parma in 

Roberto Baggio scored a second-half 
hat-trick with two goals coming from 
the penally spot, ana Kennet Andereson 
struck twice as Bologna gained its first 
victory of the season with a 5-1 victory 
over Napoli. 

Lazio, playing with 10 men, beat 
Roma. 3-1, with brilliant second-half 
goals from the veterans Roberto Man- 
cini, Pierluigi Casiraghi and Pavel Ned- 

Germany Bayern Munich, the reign- 

or facing a break point, he ii 
velocity on his service or sent a ground 
stroke a little deeper than usual ro set up 
a winner. 

Sampras took advantage of four er- 
rors by Bjorkman to gain a break in the 
sixth game of the fust set, but he al- 
lowed Bjorkman to come back from a 1- 
3 deficit to take the second set, 6-4. 

Sampras double faulted at set point 
and showed a rare flash of anger by 
bouncing his racket on the floor. "1 
rarely ever do that,” he said. “I was 
frustrated. I let him off the hook. It was 
careless tennis.” 

Sampras came back to give up just 
four points in four service games in the 
third set to take command. In the fourth 

it, Bjorkman began to fade. 

“Even though I won the second set, I 

was starting to get tired in the legs after 
that," Bjorkman said 

MitM Mci/liv WtiMam.** 

Sampras hitting a backhand return 
to Bjorkman in Paris on Sunday.. 

Bills Plagued by Errors , 
But Still Beat the Dolphins 

The Associated Press 

The Buffalo Bills had six fumbles, one 
muffed punt, several bad plays and no 
touchdowns. Yet they still wound up 
beating the Miami Dolphins on Sunday. 

With Steve Christie kicking three field 
goals, the host Bills won for the second 
time in. three weeks without reaching the 

(tadsfciiis 3f, Bears 8 Whatever has 7 — 
been ailing the Washington Redskins 

was cured quickly Sunday against the 
1 mistral 

end zone, slipping by the Dolphins, 9-6, 
in a game that Miami quarterback Dan 
Marino left in the third quarter. 

Marino sustained a sprained left 
ankle in the first half before leaving the 
game for good with 11:25 left in the 
third quarter after he was intercepted by 
defensive end Sean Moran. Marino had 
completed only 4-of- 14 for 67 yards and 
one interception before being replaced 
by backup Craig Erickson. 

Christie kicked field goals of 41, 40 
and 39 yards for the Bills. 

woeful and frustrated Chicago Bears. 

Buoyed by the return of running bad : 
Terry Allen, the Redskins ignored a mul- • 
titude of injuries and routed the Beats/'* 4 I 
31-8, in one of Chicago's most em-rr-1 l 
barrassing losses ever at Soldier Field. .. ‘ 

The Redskins, who led 24-0 at the 
half, ended a two-game losing streak 
and improved their record to 5-4. The 
Bears (1-8) were more than horrible; 
they also lost their composure just as 
they keep losing fans — there were 
13.912 no-shows. 

Chicago’s Curtis Conway was ejec- 
ted in the first half for making contact 
with an official when the receiver didn't 
get a pass interference call. He also 
threw his helmet, receiving a pair of 15- 
- yard penalties for unsportsmanlike coo- 



rag champion, trailed twice and saw one 

of its defenders, Samuel Kuffour, sent 
off before grabbing a 2-2 draw with 
TSV 1860 Munich in a tense match on 
Saturday. A powerful free kick by 
Mario Basler gave the more glamorous 
of the two Munich teams a second-half 

Bayern played the last 20 minutes 
with 10 men after Kuffour was sent off 
for a vicious tackle on TSV midfielder 
Harald Cemy. Bayern stayed in second 
place, four points behind the league- 
leading Kaiserslautern, which drew, 2- 
2, at Borussia Dortmund on Friday. 

(AP, Reuters ) 

The Dolphins moved into Buffalo 
territory in the 1 

duct that knocked his team out of 

„ — j final two minutes before 
Erickson was intercepted by Jeff Burris 
ar the Buffalo 19 with 1:01 re maining . 

Buffalo (5-4) fumbled six times and 
muffed a punt on the slick turf at Rich 
Stadium, but only turned the ball over 
once. The Bills’ quarterback, Alex Van 
Pelt, was solid but nor spectacular in his 
first NFL start in place of the injured 
Todd Collins. He completed 1 3 of 22 for 
89 yards. 

Erickson completed eight-of-18 for 
121 yards for the Dolphins (5-4), who 
had no fewer than five dropped passes. 
Olindo Mine kicked field goals of 27 
and 35 yards for Mi ami 


1 14 A visit finotSfc- .; 

goal range. 

PwrtW* 38, Raiders 

the NFL’s worst defense translated into 
a record day for the host Carolina Pan- 
thers. Fred Lane had three of Carolina's 
five rushing touchdowns and ran for a 
club-record 147 yards against the Raid- 
ers’ straggling defense. • 

Kerry Collins threw for. 1 98 yards and 
rushed for one score, and ihe Panthers 
(5-4) fin&bed with a franchise-record 
216 rushing yards and won their third 
consecutive game. 

Lane, a rookie free agent from Lane 
College, got some rare playing time 
because starting halfback Tshimanga 
Biakabutuka left five plavs into the 
game with braised ribs. 

Every country has its own AT&T Access Number which 
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in the springtime. 



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