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) Published with the new york times and the Washington post 

/ iVT- , 

lie World’s Daily Newspaperv-^r 

London, Thursday, October 2, 1997 

No. 35,641 ^ 

NATO Troops in Bosnia 
Seize Serb TV Facilities 

radzic Supporters Lose Transmitters 
After Assailing UN War Crimes Tribunal 

By Chris Hedges 

JVew York Tunes Service 

Sheikh Ahmed Yassin, long a com- 
mitted and deadly enemy of Israel. 

Israelis Free 
Deadly Foe 
i From Jail 

Ailing Hamas Chief 
Is Flown to Jordan 
In Mysterious Move 

By Barton Gellman 

-• Washington Post Service 

JERUSALEM — In a predawn heli- 
copter flight from a maximum security 
prison, Israel unexpectedly sent the ail- 
ing founder of the Hamas Islamic move- 
ment to a hero’s welcome in Jordan on 

Jordanian and Palestinian officials, in 
comments met with conspicuous si- 
lence in Israel, described the sudden 
pardon and liberation of Sheikh Ahmed 
Yassin as an Israeli effort at damage 
control after a botched assassination at- 
tempt in Jordan last week. 

Ihe Israeli Army put out a brief state- 
ment Bt 4 AJM. citing only the sheikh's 
| . failing health and a request from King 
®f, ! Hussein of Jordan “positive steps 
which will help the peace process.” 

Israeli officials uniformly declined to 

The release of one of Israel’s mortal 
enemies, who has renounced neither the 
Palestinian claim to all of Israel nor the 
use of violence to obtain it, had more 
than a little mystery about iL 

The drama came at the collision of 
multiple political weaknesses among 
■Pales tinian, Israeli and Jordanian lead- 
ers, all of whom have mutual rivalries 
and relationships with Hamas that are 
troubled at best 

The Palestinian leader, Yasser Ara- 
( v Tat, who has struggled with Hamas for 
Vf political dominance but adopted the im- 
prisoned Sheikh Yassin as a national 
symbol, was embarrassed by Israel’s 
decision to bypass him and fly the Gaza- 
bom cleric to Jordan. 

Prime Minister Benjamin Netanyahu, 
mere weeks after the last Hamas suicide 
bombing in Jerusalem, felt obliged for 
the second time this year to abandon a 
-long-held Israeli criminal claim against 
a senior leader of the Islamic Resistance 
Movement The greater political need. 

See SHEIKH, Page 6 

BANJA LUKA, Bosnia-Herzegovi- 
na — NATO-led peacekeepers, follow- 
ing a refusal by Bosnian Serb television 
to end criticism of international orga- 
nizations working to restore peace in 
Bosnia, moved Wednesday to seize four 
television transmitters controlled by 
hard-line forces loyal to Radovan 
Karadzic, who has been indicted for war 

Troops from several NATO coun- 
tries. joined by others serving in the 
peace force, surrounded the transmitters 
in the Serbian-controlled half of Bos- 

The move came in reaction to broad- 
casts Sunday night suggesting that the 

Sarajevo culture is reborn. Page 20. 

United Nations war crimes tribunal in 
The Hague was anti-Serb. 

There had been repeated warnings to 
the Bosnian Serbs to end propaganda 

The seizure of foe transmitters does 
not mean that Sob Radio and Tele- 
vision. which is directly controlled by 
Mr. Karadzic, would be taken off foe air. 
according to international officials. 

The officials said it would be “re- 
structured” to present a more balanced 
view of events and would eventually 
share time with the studio controlled by 
Mr. Karadzic’s political rival in Banja 
Luka, foe Bosnian Serbs’ president, BU- 
jana Plavsic. 

Mrs. Plavsic is locked in a power 
struggle with foe hard-liners in the town 
of Pale whom she accuses of wide- 
spread corruption. 

General Wesley Clark, foe supreme 
commander of NATO, said in 
Maastricht, Netherlands, that broad- 
casts would soon resume — but under 
“new management.'' 

The American general said the trans- 
mitters would be turned over, for the 
time being, to Mrs. Plavsic’s support- 

“As of yet. nothing has been done to 
influence the signal sent out from Pale,” 
said Duncan Bulliv ant, spokesman for 
the Office of the High Representative, 
foe chief civilian international agency in 

“We are in the position where we can 
do what we want with transmitter sites. 
What we would like to see are respon- 
sible broadcasts from Banja Luka and 
Pale competing together in the time 
running up to the next elections. We are 
not Dying to rub Pale Television off the 
face of earth, but are looking at a more 
robust approach to influencing 'its ed- 
itorial approach.” 

The operation differed markedly 
from a bungled attempt at the end of 
August by U.S. troops to seize a trans- 
mitter on Mount Kozora near the Bos- 
nian Serb town of Prijedor. In that op- 
eration, foe Americans had to withdraw 
after crowds of pro-Karadzife support- 
ers, many of them policemen in civilian 
clothes, collected at foe site and attacked 
the soldiers with clubs and stones. 

The withdrawal, along with foe with- 
drawal by U.S. troops from police sta- 

See BOSNIA, Page 6 

niEppc Woj*e»/Remteji 

DIRTY AIR — A man walking his bicycle across an unusually 
deserted street leading to the Arc de Triomphe on Wednesday, when 
a smog alert banned many private vehicles from the city. Page 5. 

Alternative Education 
Is Flourishing in U.S. 

Increasingly, Parents Reject Public Schools 

A $30 Billion Bid 

By WorldCom 
To Take Over MCI 

Surprise Offer Aims to Make 
Mississippi Firm 2d to AT&T 

By Mitchell Martin 

International Herald Tribune 

By Rene Sanchez 

Washington Post Service 

WASHINGTON — In a movement 
that is flustering educators, more par- 
ents than ever are choosing alternatives 
to public education for their children, to 
such an extent that what once seemed to 
be a fad is now starting to resemble a 

Charter schools that are approved by 
foe state but are outside foe public 
school system are expanding at a break- 
neck pace. Religious schools are over- 
flowing with new students. Home 
schooling is attracting unprecedented 
numbers of parents who only a few 
years ago would never have dreamed of 
teaching their own children. 

Those migrating from public edu- 
cation say foe roots of their disenchant- 
ment vary. Some parents are frustrated 
with bureaucracy, others fear student 
violence. Some want their children to 
spend more time learning values, others 
call the one-size-fits-all model of most 
large public schools an ineffective and 
impersonal way to learn. 

Not long ago, many public school 
officials scoffed at foe growth of other 

options in education. But those trends 
have begun to send a powerful message 
to public schools. 

In Michigan this fall, public schools 
that have lost hundreds of students to 
new charter schools, which get taxpayer 
money but set their own teaching rules, 
have responded by creating all-day 
kindergarten classes and new enrich- 
ment programs for students to compete 
with alternative schools. 

In Arizona, which has more charter 
schools than any other state, one large 
public school district, in Mesa, has gone 
as far as placing full-page advertise- 
ments in local newspapers to win back 
parents. “We can’t assume anymore 
that everyone is just going to come to 
our schools,” said Judy Willis, foe dis- 
trict's director of community relations. 

Some of the story can be told in 
numbers: In 1992, there was one charter 
school in the nation. Today, there are 
more than 800. The Clinton adminis- 
tration intends to spend $100 million to 
help develop as many as 3.000 of them 
by 2000. 

Home schooling is also flourishing. 

See SCHOOLS, Page 6 

NEW YORK — WorldCom Inc., foe 
fourth-biggest U.S. long-distance com- 
pany, rnttrie a surprise takeover bid 
worth about $30 bmioh for MCI Com- 
munications Corp. on Wednesday in 
what would be the largest-ever U.S. 

The offer from WorldCom, a little- 
known but aggressively growing Mis- 
sissippi company, could derail an earlier 
offer from British Telecommunications 
PLC and rank WorldCom behind only 
AT&T Corp. in the U.S. telephone mar- 

Bernard Ebbers, foe acquisitive 
WorldCom president and chief exec- 
utive, said be hoped that British Tele- 
com would give up its attempt to buy 
MO, in which it has had a 20 percent 
stake since 1993, and would instead 
work with the merged American 

British Telecom did not respond to the 
WorldCom offer and MCI said only that 
it would study it “in due course.” But 
foe bid seems to offer the companies a 
graceful way out of a troubled deal. 
Analysts were skeptical that BT, whose 
stock rose sharply on Wednesday, would 
keep up its pursuit of MCI. (Page 11) 

tl BT's snare prioe is saying that in- 
vestors regard this as a good thing be- 
cause they believe BT is better off with- 
out MCL” said Chris Tucker, an analyst 
at Paribas Ltd. 

James McCafFerty, an analyst at ABN 
AMRO Hoare Govett, said: “I think BT 
walks away from foe transaction. It’s 
very unlikely they’d get shareholder 
support to raise their proposal. ” 

WorldCom's $41.50-a-share bid is 
41 percent more than MCI’s closing 
price Tuesday and tops BT's $32.73-a- 
share revised offer or five weeks ago. 

WorldCom has been on an acqui- 
sition rampage in recent months. Along 
with the. MCI offer, it announced on 
Wednesday a $2.4 billion takeover of 
Brooks Fiber Properties Inc., which has 
fiber telecommunications networks in 
44 U.S. cities. 

Earlier this month, WorldCom engin- 
eered a three-way transaction in which it 
would buy CompuServe Corp. for $1.2 
billion, turning that company’s on-line 
sendee over to its larger rival, America 
Online Inc. WorldCom would emerge 
from foe deal with foe communications 
networks of both companies. 

And last year, WorldCom bought 
MFS Communications for $14 billion, 
getting hold of foe big Internet service 
provider, UUNet Technologies. 

The spending binge reflects Mr. 
Ebbers ’s philosophy that “this world is 
going to end up with a limited number of 
successful international players.” 

He added, however, that WorldCom 
did not have any further acquisition 
ran di datM at this time. 

A WorldCom-MCI combination 
would have more than $30 billion in 
revenue a year. AT&T had $52.2 billion 
in sales last year, and Sprint Corp., foe 
third- biggest phone concern, had $14 

WorldCom's muscular stock is a key 
to its latest offer. Although a World- 
Com-MCI merger would be foe largest 
U.S. takeover on record, outstripping 
the $26.4 billion acquisition of 

See DEAL, Page 6 

: • 


Bernard Ebbers of WorldCom Inc. making a point at a New York news 
conference Wednesday as be explained his company’s bid for MCI. 

France Tells NATO 
It WillNot Rejoin 

PARIS — France told NATO on 
Wednesday that its officers would 
not rejoin the affiance’s military 
structure because the United States 
was not ready to let a European take 
over the southern command Page 5. 

Japan Reports More Gloom and Doom for Economy 

worst performance in 23 years. 

The bad news for trading partners is that foe num- 
bers illustrate that Japan’s only engine of growth is 
exports and foal efforts to limit exports dramatically 
could push the country into a recession. 

Other bad news is that Mr. Hashimoto’s unsuc- 
cessful recent attempt to appoint a politician convicted 
of takingbribes to ais cabinet has hurt his popularity 
ratings. That has raised concerns about his ability to 

By Sandra Sugawara 

Washington Post Service 

TOKYO — Business confidence here has 
plummeted, consumer confidence has taken a nose- 
dive, foe approval rating for Prime Minister Ryu taro 
Hashimoto has fallen sharply and Japan's trade sur- 
plus is not going to decline soon. 

Thai's foe news from the Bank of Japan, which on 
Tuesday made public its quarterly survey of business 
confidence, and from several other recently published 
statistics and polls. 

The central bank’s survey found that business 

people, ranging from large manufacturers to small 
service companies, had grown increasingly pessimis- 
tic about their business prospects. Other government 
reports made public Tuesday found that such key ind- 

UB. accuses South Korea, Japan, Canada, the EU 
and Australia of unfair trade practices. Page 12. 

icators as housing starts, industrial production and 
retail sales fell in August. 

Earlier statistics revealed that Japan’s economy 
shrank 2.9 percent during the April-June period, its 

win ie; 

lative sui 
. offici 

ability .t 

for his deregulation efforts, 
see as vital to opening Japanese 

See JAPAN, Page 6 

Italy Budget Bill Sows Qiaos 

j Communist Party Balks at Further Welfare Cuts 

By Celestine Bohlen 

Nev York Times Service 

StOME— instas Italy was beginmpg 

■ iw fnr 

ty foe Italian government was 
jvvn into crisis Wednesday by a small 
ty of hard-line Communists balking 
iuther outs in the welfare state. 

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By announcing that it would oppose a 
pending budget bid, the Refbunded Com- 
munist Party — which won 8 percent of 
foe vote in last year’s national elections 
— opened a gaping hole in foe center-left 
government's parliamentary majority, 
and left Prime Minister Romano Prodi 
with no choice but to declare a crisis. 

The drama, which was called the 
“craziest in the world” by one Italian 
newspaper, now moves to foe Parlia- 
ment where Mr. Prodi has to tty to win 
support for his struggling government 
If he fails. President Oscar Luigi Scal- 
faro could appoint a technical govern- 
ment, or even declare new elections — 
an outcome many think could seriously 
damage Italy's efforts to put stability 
into its political system and join 
Europe’s pending single currency. 

“If we have a government crisis now, 
that will ruin our chances to be in foe 
first wave of countries in the common 
currency,” said Lucio Caracciolo, ed- 
itor of Limes, a monthly political sci- 
ence journal. 

See ITALY, Page 6 


Space Walkers Prepare for Mir Repairs 

HOUSTON (AFP) — The U.S. as- 
tronaut Scott Parazynski and foe Rus- 
sian cosmonaut Vladimir Titov em- 
barked on a five-hour space walk 
from the space shuttle Atlantis on 
Wednesday to store equipment on foe 
outside of the space station Mir that 
could be used to repair the damaged 
Spektr module. 

The module was punctured in June 
during a collision brtween Mir and a 
cargo ship. The equipment : — a cap 
that could be used to seal the hole in 
Spektr — will be ready for use when 
foe Mir crew finds the puncture. 

More Deals for Iran? 

Elf Aquitaine SA indicated 
Wednesday that it was seeking pet- 
roleum contracts with Iran ana Iraq, 
after another French company's deal 
with Tehran threatened to spark a 
U.S. -European trade conflict Elf said 
it was pursuing oil exploration and 

S reduction deals with both countries, 
ut only in compliance with UN sanc- 
tions against Iraq. Page 2. 

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For Hong Kong, ‘Just a Holiday' 

Page 10. 


— Page IS. 

.. Pages 8-9. 



Pages 18-19. 

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BraziVs Pop Catholicism 

Church Presents New Face for John Paul’s Visit 

By Anthony Faiola 

Washington Post Service 

RIO DE JANEIRO — On foe sultry 
shores of Ipanema Beach, the priest is 
getting funky, rapping in Portuguese on 
a huge stage with twin bodybuilders in 
black sunglasses as' 5,000 teenagers in 
bikinis and tank tops bop and scream as 
if they had just witnessed foe resur- 
rection of Kurt Cobain. 

“Since God is Brazilian, then foe 
Pope' mast really be from Rio de 
Janeiro!” Father Zeca, 27, the surfer 
dude/priest yells at foe top of his k 
The youths cheer, going wild at 
reference to a popular local sayingabout 
Pope John Paul D, who arrives inRio on 
'Thursday for a four-day visit. 

“We’re here to bring them back to 
foe faith,” Pastor Jose Luiz Jansen de 
Mello Nero, stage-named Father Zeca, 
said in an interview before a Ro man 
Catholic rock concert Sunday to mark 
'foe Pope’s visit The pastor’s antics 
have made him a local celebrity. 

“We’re finally giving foe people the 

emotion they want, and in foe way foe 
want to bear it,” Father Zeca said. “ W 
are moving into foe future. Because w 
have to.” 

Father Zeca; -dark shades, surfboar 
and all, is an extreme example of th 
Roman Catholic Church’s new crusad 
in Latin America, to proselytize in moc 
em ways’ in the face of growth of evar 
gelical Christianity. 

To fight foe spread of evangelisn 
experts say, foe Catholic Church fa 
been forced to do something historical] 
difficult; change. 

Now, it is using some of the sam 
tactics employed by the evangelica 
themselves. Ike thousands of Catholic 
leading foe movement here, dubbed ti 
“new missionaries,” range from ti 
likes of Father -Zeca, to foe hosts < 
pirate radio stations in foe shantytown 
to moderators Of new Catholic telev 
sion talk shows, to a lay army of chart 
representatives who go knocking dot 
to door to spread the Gospel m a man™ 

See BRAZIL, Page 6 





Trailing T-Rex to Sotheby's/ A Fossil Named Sue 

South Dakotans Want a Dinosaur Back 

Bowing to Congo, UN \ -t, ^ 1« 1,1 4 

Rppalk Mflfisaore Tparrl ? n tit4 v 

By Karen Lowe 

Agencr Franc t-Presse 

S PEARFISH, South Dakota — 
When Ihe Tyrannosaurus Rex 
fossil named “Sue" goes on 
the Sotheby’s auction block 
on Saturday, a group of Sonth 
Dakotans will be bidding so they can 
bring her home. 

The fossil, considered to be the 
most complete ever discovered, is ex- 
pected to fetch $1 million or more 
when it goes up for sale Oct. 4 in New 
York City, far from the Great Plains 
where the dinosaur once roamed. 

“She belongs to South Dakota," 
said Governor William Janklow. 
"She lived and died here, and we 
want her back." 

“Our children," he added, "write 
letters to her. It would be a blow to all 
of us if she were to go anywhere 

Among the bidders for one of the 
world’s most celebrated fossils will 
be a contingent of Sooth Dakotans 
with an undisclosed sum of money. 
The bidding for the 65-million-year- 
old fossil is expected to take three 

Sue Henderickson, an archeologist, 
found the fossil of the T-rex in 1990. 
Believed to be a female, it was dubbed 
Sue. For the next six years, the fossil 
was the center of a legal battle over its 

"sure” that there was another fossil 
on his land. "There is a big bone 
sticking out," he said. “And dike is a 
great big butte there, and Tm just sure 
it’s frill of fossils." 

Tyrannosaurus Rex specimens 
have been found in various parts of 
North America, but Sue, which mea- 
sures between 12 and 15 meters, is 90 
percent complete and is in a near- 
pristine state of preservation. 

The specimen also offers extraor- 
dinary evidence of life-threatening in- 
juries, including a healed fracture to 
one leg, a tooth fragment from a rival 
Tyrannosaurus Rex, and a gouge on 
the side of the skulL 

Recalls Massacre Team 

Kabila Demanded Their Withdrawal l 
After Keeping Them in Capital for Weeks 

. IP'* 

Agatce Fnmce-Presse foreign aid was contingent on its bci! 

LINKED NATIONS, New York — havior toward the investigation. .-.r 
The United Nations secretary-general. A senior U.S. official said that See-: 
Kofi Annan, is r ollin g a human rights retary of State Madeleine Albright m & 
investigative team from Kinshasa for Tuesday with Mr. Karaha and made it 
consultations, a UN spokesman, Fred plain that the United States would nor 
Eckhard, announced here Wednesday. extend aid to Congo unless the UN team' 

Mr. Annan was informing the Con- was allowed to investigate.' 
golese foreign minister, Bizima Karaha, But while international pressure was - 

of the decision “taken this morning to brought to bear on Mr. Kabila's nearly 
withdraw the investigative team on hu- five-month-old government, the invcs- 1 

was working for die 
Black Hills Institute of 
Geological Research, 
which has prepared fossils for the 
Smithsonian and other world class 
museums, when she unearthed die 
dinosaur bones near Hill City. 

After a lengthy court battle, it was 
determined mat the dinosaur fossil 
was "real estate" and belonged to a 
rancher, Maurice Williams. 

The fossil was put up for sale by the 

U.S. government, which has been 
holding it in trust for Mr. Williams, an 
American Indian who is a member of 
the Cheyenne River Sioux tribe and 
lives in Faith, Sonth Dakota. 

Mayor Drew Vitter of Hill City is 
still smarting over the loss of Sue to 
Mr. W illiams , who he said had a 
"handshake deal" to give the bones 
to the Black - Hills Institute for 

Mr. Williams said when the pres- 

ident of the institute, Peter Larson, 
gave him the $5,000 check he thought 
it was compensation for tearing upnis 
land, and he told Mr. Larson to ne- 
gotiate with the government for the 

His tribe also went to court to get 
the fossil, but lost out. said Mr. Wil- 
liams, who noted that after six years 
of legal wrangling, "I don’t give a 
damn who buys it." 

But, tantalmngly. be said he was 

S entiments were running 

high in 1992, Mr. Vitter said, 
when 25 National Guard 
troops and 12 Federal Bureau 
of Investigation armed agents arrived 
to haul Sue away. 

“Some people wanted to physic- 
ally block the agents with logging 
tracks," Mr. Vitter recalled. “There 
could have been a mess of trouble 
when the government came and took 
her away. 

“I didn 't think it was worth spilling 
blood over some dinosaur bores,” 
said Mr. Vitter, who advised against 
taking action. “Still, there were some 
bitter feelings for a long time between 
the citizens and the government." 

Hue agents packed Sue up in 130 
crates and cartons and took her to the 
Sonth Dakota School of Mines in 
Rapid City before she was shipped to 
Sotheby’s last October. 

Marion Zenker, aboard member of 
die Black Hills Institute, expressed 
concent that the Sue could rail into 
private hands and be kept from public 

"When she was here, she was 
available for everyone to see," Ms. 
Zenker said. "But for the past four or 
five years, she has been locked up so 
no one could see her." 

man rights for cons ul tad ons pending 
final clarification of the policy of the 
Democratic Republic of Congo." 

The three-roan team — Atsu Koffi 
Amega, a Togolese jurist who leads the 
investigation; Reed Brody of the United 
States, and Andrew Chigovera of Zi- 
mbabwe — are backed by 21 forensic 
and other experts. 

■ KaMla Assails the Hand 

ligation also developed into a dink*' 
matic hot potato for me United Natioasft 
and several global powers. . 

International indifference, inaction or 
complicity at several key junctures fa 
Central Africa’s troubled recent history? 
such as the 1994 genocide in Rwanda! 
and the subsequent exodus of refugees 
into eastern Congo, may have conic 
pounded the region's carnage, human! 
rights activists said. - 

In the contest with Mr. Kabila, at stake 
for the Uoited Nations is its credibility *5 
a protector of human rights; at stake f off 
Congo is international acceptance, a* 
well as the aid and investment needed fop 
rebuilding after more than three decadts 
of corrupt rule under Mr. Mobutu. The 
rebellion ousted him in May and be dkdr, 
in exile lost month. % 

Mr. Kabila's government has at* 
tempted to cast the United 'Nations asd! 
hypocritical organization thardidnotabo 
to save the Rwandan refugees when fc 
had a chance. In addition, Congolese 
officials have said that if innocent people* 
were killed during the rebellion, they! 
died as a result of battle, not massacres.' 1 

But the UN investigatorscomend thq* 
evidence gathered by several sources 
strongly indicated that Mr. Kabila’s 
rebels — whose fighting core consisted' 
largely of ethnic Tutsi from Congo and 
Rwanda — routinely massacred inn&i 
cent Hutu men, women and children. 

“You’ve got two organizations tint 
don’t like each other," a Western dip 1 * 
lomat said. "The Congolese don’t like. , 
the UN; the Rwandans don’t like tfici* ; 
UN. And the UN probably richly re- & 
ciprocates that feeling, because they sfc 
the Congolese as people who don’t afc 
cept their authority.” ■**■ 

The outcry over the reported mas-, 
sacres led to the formation of the UN 
investigating team, which, after pro- 
longed negotiations with Mr. Kabila’s- 
government, flew to Kinshasa on Aug. 

24. But even after its arrival, the goV^ 
eminent objected to the independence 
with r whieh the team ‘sotighi 10 'operate? = 
-The UN-has made’-tWo major cort£ 
promises — by agreeing to Congo’s 
demand that it replace die original head £ 
of the investigation and by agreeing to’ 
extend the mandate of die inquiry to 
cover human rights violations datidg 
back as far as 1993. 

Mr. Kabila’s ministers also balked At 
the planned scope of the team's mission,- - 
which the United Nations said shoukf • 
encompass all of Congo. The govern** 
ment said the mission must focus oaff - 
on the east of the country. - n ~ 

The government would not allow air- 
line titikets to be sold to the UN in-’ 
vestigaiors last month when they wanted* 4 ~ 
to fly to the city of Mbandaka, whert’af^o 
massacre is alleged to have occurred. *\ 

Following Rival’s Lead, Elf May Pursue Iran Deals 

Earlier, Lynne Duke of The Wash- 
ington Post reported from Goma, 

President Laurent Kabila announced 
Tuesday that he wanted the UN in- 
vestigators who were sent to investigate 
alleged massacres to leave Congo. 

Mr, Kahila said in Lusaka, Zambia, 
rhflt he would ask Mr. Annan to with- 
draw the team, which has languished in 
Kinshasa for five weeks. 

Although the investigators 1 failure to 
leave the Congolese capital has been 
due principally to refusals by Mr. Kab- 
ila’s government to grant access to sus- 
pected massacre sites, Reuters news ser- 
vice quoted the president as having said 
that they had failed to establish that any 
massacres had occurred and were mis- 
leading the international community. 

“These investigators are just issuing 
statements from posh hotels in Kin- 
shasa," he charged. "They have failed 
to go to these areas to prove that the 
massacres took place. " 

The UN team was sent to investigate 
reports that Mr. Kabila’s rebels — who 
toppled the dictator Mobutu Sese Seko 
with help from Rwanda, Angola and 

cnapitdivoirsafiFnmUvvcha would consider penalizing the French oil 

PARIS — Elf Aquitaine SA con- company Total SA for signing a $2 
finned Wednesday that it was seeking billion contract with Iran on Sunday, 
petroleum contracts with Iran and Iraq, Under the Iran-Libya sanctions act, a 
just days after another French com- law passed by the U.S. Congress last 
pany’s deal with Tehran threatened to year, Washington can penalize compa- 
spaik a U.S. -European trade conflict. nies investing more than $20 million in 

Elf is pursuing oil exploration and Iran or $40 million in Libya. 

•production deals with both countries, President Boris Yeltr' * 
but only incompliance, with UN sane- weighed in on Wednesd 

meulen. Elf’s vice president for explo- 
ration and production. 

“The situation is very different from 
that of Iraq because there is no law 
binding ns that prohibits working in 
Iran," Mr. Venneulen said. "However, 
we have considerable interests in the 

tions law was not to impose sanctions 
bat “to get other countries in the region, 
in Europe in particular, to work with ns 
on the subject of tightening up the pres- 
sure on Iran," a State Department 
spokesman, James Rubin, said. 

In pointed remarks on Tuesday to the 

United States not only in exploration and Council on Foreign Relations in New 

but only incompliance, with. UN sane- weighed in on Wednesday with strong 
dons against Iraq and with a cautiouseye criticism of the United States in the 
on U.S. altitudes toward ban, anPElf dispute. Mr. Yeltsin, speaking about die 

President Boris Yeltsin of Russia production but also in chemicals and York, Secretary of State Madeleane Al- 

spokesman, Thomas Saunders, said. 

"We have said we hoped to sign as 
quickly as possible something with Iraq, 
but of course in compliance with UN 

resolutions," Mr. Saunders said, adding trade with Iran. 

$2 billion deal in which Russia's RAO 
Gazprom is a junior partner toTotaL said 
it was “impermissible" for the United 
States to pressure other countries not to 

that the company would like to bring in 
U.S. partners to such a deal 
The United States, which accuses Iran 

Elf is talking to the Iranian govern- 
ment about production in the Doroud oil 
field, despite concerns about U.S. op- 

pharmaceuticals, and we need to be ex- 
tremely cautious about the attitude of the 
U.S. administration," he said. 

About 15 percent of Elf s annual sales 
of 232.7 billion francs ($39.2 billion) 
originates in the United States. 

The United States on Tuesday raised 
the possibility of waiving Lean-related 

bright said she found it incomprehens- 
ible that France did not realize the dam- 
age that commercial dealings with Iran 
could cause to Western attempts to 
change Tehran's policies. 

“As far as the French arc concerned, I 
must say it passes my understanding 
why there is no realization that pumping 

sanctions on foreign companies if their money into the system of Iran is not 

of sponsoring terrorism, has said it position to such deals, said Mr. Ver- 

governments pressured Tehran to end its 
support of terrorism. 

The objective of the Iran-Libya sanc- 


Railroad Strike 
Called in France 

PARIS (Reuters) — The 
main French train drivers’ 
union said Wednesday that it 
would call a 36-hour strike at 
the SNCF state railway com- 
pany, starting at 8 P.M. next 

The onion served its strike 
notice along with, the CGT, 
CFDT and FO unions with- 
out stipulating what form the 
strike action would take. The 
unions represent die vast ma- 
jority of staff at the SNCF. 

Rules of Road 

may, starting at 8 P.M. next n f . 

Tuesday and continuing until nnit t 1T1 Kftl g i lUTi 
8 A.M. on Oct- 9. ddttccct c 

The FGAAC union said . BR V^ S S^ — 

management had failed. to ±2*2?* *2?“” 

meet all the main unions after 
they warned Sept 18 that 
they would go on strike to 
demand talks on wages, 
working hours and work con- 

BRUSSELS (Reuters) — 
A revolution hit Belgian 
traffic circles Wednesday as 
a new law came into force 
ending the traditional prior- 
ity for road users arriving 
from the right. 

The practice of giving 
drivers already on a round- 
about priority over those ar- 
riving at it — indicated by a 
series of teeth painted on the 
road — has been slowly 
growing in the south of the 

country, although it still con- 
fuses many drivers. 

But starting on Wednes- 
day, a law went into force 
making it obligatory for all 
access routes to roundabouts 
to have the triangle- like teeth 
painted on them. 

Traffic policemen pointed 
out, however, that it would 
take some time for all the 
sign painting to be carried 
out, and in any case many 
drivers — used for years to 
steaming at full speed onto 
traffic circles — were ignor- 
ant of the meaning of the 

Belgium, which only in- 
troduced driving tests in the 
early 1970s, has one of the 
highest road accident rates in 
Europe — primarily a result 
of the priority from the right 
rale that still applies to roads 
in general. 

Death Toll Up 
To4in Spain 

helpful to the rest of us,” Mrs. Albright 

Mr. Rubin said the administration 
would try to repeat with Iran what it 
considered a successful U.S. campaign 
to use an American sanctions law 
against Cuba to get Europeans to halt 
investment there and to press Havana on 

h uman rights. 

(AP. Reuters) 

Uganda — massacred Rwandan Hutu 
refugees during the rebels* seven-month 
sweep across Congo. 

While many of the Hutu allegedly 
killed by the Tutsi-dominated rebel 
force were said to have participated in 
the 1994 slaughter of more than a half 
million Tutsi in Rwanda, women and 
children also died at the rebels’ hands, 
witnesses, survivors and human rights 
woikers said. ■ ■ • 

After first agreeing in June to pertmt 
an investigation of the massacre alle- 
gations to proceed, Mr. Kabila and his 
government obstructed the investiga- 
tors and branded the United Nations’ 
handling of it an affront to Congolese 
sovereignty. Those arguments, human 
rights activists said, have been used as a 
stalling tactic while the evidence of 
massacres was destroyed. 

Reports from human rights and in- 
telligence sources say that massacre 
sites have been cleaned up, bodies have 
been exhumed from mass graves and 
burned, and witnesses are being intim- 
idated or jailed. The United States and 
the European Union have warned 
Congo repeatedly that much-needed 

UK ■ 

i Ifbrm t oniitiissit 

— Rescue workers found the 
body of a woman Wednes- 
day, bringing to four the 
number lolled in torrential 
rains in this southeastern 
city, news reports said. 

The woman is believed to 
be the mother of a 6-year-old 
child whose body was found 
Tuesday. The bodies of two 
other women were also found 
Tuesday evening. 



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For My Complimentary Services Guido, Latest Research Reports. 
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BERRY, Dean 

A Service of Thanksgiving for 
the life and work of Dean F. 
Berry of tile London Business 
School, Insead and Gemini 
Consulting wil] be held at 
St. Bride's Church. Fleet 
Sl. London on Wednesday 
15th. October at 12 Noon 
followed by a reception. 
AO friends, colleagues and 
ex-students are welcome. 

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^Fast Track’ Approved 
In First Test in Senate 

Trade Measure Gams, With No Discussion 

V The Associated Pros* 

WASHINGTON — President Bill 
Clinton^ request foe congressional au- 

ments, a major privity for bis second 
term, cleared its first legislative hurdle 

Hie Senate Finance Committee ap- 
proved the measure by voice vote with 
dq public discussion after' members 
spent more than an hour in a meeting 
with administration representatives. 
•-[Mr. Clinton is seeking “fast track” 
negotiating authority to expand the 

Canada and Mexico to other coun- 
in Ota 

'’'tries zq Latin America and beyond. 

nlaooiwl inthtk. 


. , ; Senate Finance Com- 

tjMttee," said the U.S. trade represen- 
tative, Charlene Baishefsky. 
is“It was astrong bipartisan showing 
oft support for fast-track legislation, for 
the power oftbe president to continue to 
lead with respect to inte rnatio nal eco- 
nomic policy.’’ 

- r Mir. Clinton is expected, to hit hard on 
the issue next month in a visit to Ar- 
gentina, Brazil and Venezuela, all coun- 
tries that would become members of the 
‘‘free Trade Area of the Americas” that 
the president vowed to help establish by 
. the next century. 

( ■' Fast trade is not a trade accord but a 
' set of rules to guide U.S. negotiators as 
they work out trade agreements with 
other countries, die World Trade Or- 
ganization and similar institutions. 

: Jts name derives from the fact that 
ti&se accords, once negotiated, have to 
he quickly voted on by Congress, with- 
out amendment 

■f Bridging a Gap on Standards 

’ Paul Blustein of. the Washington Post 
Reported earlier; 

The Finance Committee bill tries to 
bridge a gap between moderate Demo- 
crats and conservative Republicans on 
the issue of whether trade deals should 
include provisions requiring countries 

to 1 meet certain standards on worker 
rights and the environment. 

Hie bill seeks to assuage Republican 
fears that Mr. Clinton would strike a 
trade accord that would entail a tight- 
ening of U.S. domestic standards on 
labor or die environment. 

Il specifies that while agreements to 
lower trade barriers would be subject to' 
fasHrackr procedures, the same would 
not apply to any provisions requiring 
changes in U.S. labor or environmental 

Labor and environmental provisions 
would still be subject to fast-track pro- 
cedures if they were “directly related to 
trade” — an example being a health 
standard barring the importation of for- 
eign products. 

Also subject to fast track would be 
provisions prohibiting countries from 
lowering their labor or environmental 
standards “as a means of attracting in- 
vestment ” 

Democratic critics of free trade, who 
are demanding that trade deals include 
strict provisions to raise labor and en- 
vironmental standards abroad, said 
Tuesday that the White House might 
alienate House Democrats by backing 
the Finance Committee bill. 

The speaker of the House, Newt Gin- 
grich, also warned that the legislation 
“is in very deep trouble” in the House. 
That sentiment was echoed by the pres- 
ident’s chief House ally on the issue, 
Representative Robert Matsu i, Demo- 
crat of California. 

Mr. Glpgrich, in an appearance at the 
National Press Club, said, “I do not 
today see die votes in the House to pass 
fast track,” given the opposition of or- 
ganized Labor and of the House minority 
leader. Representative Richard Geph- 
ardt, Democrat of Missouri. 

Mr. Matsoi, who also said at die 
House bearing that fas t track * ‘is in deep 
trouble,” said later that “it's going to 
help a lot” if the Senate Finance Com- 
mittee bill passes with solid bipartisan 
support, as it did Wednesday. 


Daffd 8. Mfl/Ht AactM tai 

GAMBLERS FORCED OUT — Flames rising from the El Dorado resort in Reno, Nevada. Scores of 
gamblers were evacuated from the casino. The fire started near a marquee. It was extinguished in 'less 
than an hour, and damage was limited to the exterior and a mezzanine with restaurants. No one was h^rt- 



The Wealthy and Worried 
Build 6 God Forbid Rooms’ 

Crime rates have been falling across 
much of America, but you wouldn't 
know it from the way some people 
spend their money. Sales of body ar- 
mor are up in this country where there 
is nearly one privately owned gun 
(223 million) for every inhabitant, 
children included. Even bulletproof 
bras are selling. And small, but grow- 
ing numbers of people are building 
secret, heavily protected redoubts into 
their houses. Some people, reports 
The New York limes, call them the 
“God forbid room,” as in “God for- 

bid that a kidnapper should come 
storming in here with a gun.” 

Most of these inner sanctums are 
being built by the very wealthy, people 
with some reason to fear abduction or 
attack. The rooms tend to be closets 
with armored doors, but some include 
emergency generators, separate, bur- 
ied phone lines, and closed-circuit TV 
monitors. Deluxe models allow the be- 
sieged person to send an electric shock 
through the mat outside the armored 
door. Costs can reach $500,000. 

That's a lot of money at a time of 
subsiding crime rates. But abductions 
in Europe, and a few high-profile 
crimes in the United States, have fed 
people’s fears, specialists say. 

Meanwhile, for those who cannot 
afford a more expensive approach to 
peace of mind, specialists suggest a 
simple solution, one that provides, in a 
single inexpensive package, both 
warning and defense against attack: 
the dog. 

Short Takes 

Speaking of violence, postal em- 
ployees are angry about a new video 
game, “Postal,” in which a dis- 
gruntled man roams the streets shoot- 
ing police officers, pedestrians, a 
marching band and churchgoers. As 
the victims fall the shooter mutters, 
“Going postal.” 

“Going postal” is slang for en- 
gaging in crazed mass violence. It 
dares from August 1986, when an 
Oklahoma postal worker killed 15 col- 
leagues. Many of the nation's 750,000 
postal workers resent the stereotype. 

"We're pretty outraged,'’ said Ken 
Kelble, head of a local postal workers 
union in New Hampshire. “To depict 
postal workers as violent terrorist em- 
ployees is unfair.” 

There is talk of a national boycott of 
the game. 

Brian Knowlton 


Reform Commission Calls for ‘Americanization 9 of Immigrants 

By William B rani gin 

Washington Post Service 

- WASHINGTON —In its final report 
after five years of work, the U.S. Com- 
mission oa Immigration Reform has 
catfed.for- a broad new commitment to 
the 4 ‘Americanization” of immigrants 
so that they can be better integrated into 
Optional life and strengthen toe coun- 
try's unity amid its growing diversity. 

- jTbe bipartisan advisory commission, 
appointed by die president and Con- 
•gress under a 1990 immigration law, 
also recommended tike overhaul of a 
complex system of U.S. “nonimmig- 
rant" visas, of which mo re than 6 mil- 
lion were issued last year to foreigners 
ranging from students and tourists to 
businessmen and temporary workers. 
_-jn addition, it renewed a call for re- 
form of legal immigration and proposed 

« dismantling toe Immigration and Nat- 

H uraUzation Service. It urged Congress to 

v reconsider denying welfare benefits to 
legal immigrants and advocated stricter 

enforcement of what it described as a 
lax system for deporting illegal aliens. 

Some of the panel’s recommenda- 
tions, particularly those for eliminating 
several categories of family-sponsored 
immigrants and reducing the overall 
number of immigrations over, time* up-, 
mediately drew sharp, criticism, from 
special interest groups that favor the 
existing system. ■ .i- 1 -- 

The American Immigration Lawyers 
Association said the report contained a 
rehash of recommendations on legal im- 
migration reform that were "firmly re- 
jected” by Congress last year. Amer- 
ican Business for Legal Immigration, a 
lobby representing a powerful coalition 
of companies concerned with protecting 
access to foreign workers, complained 
about proposals to cut employment- 
based immigration and to require busi- 
nesses thatrecruit foreigners to pay a foe 
toward job-training programs for Amer- 

In releasing the 232-page report 
Tuesday, the commission's chairwo- 

man, former Education Secretary Shir- 
ley Hufstedler, urged President Bill 
Clinton to emulate his recent initiative 
for a national dialogue on race and ex- 
ercise “similar leadership in grappling 
with the Americanization of new im- 
migrants;'.-- [She called i for government - 
anri.priyete-.sectar pattikrip^tion • jn , de- 
fining "a new Americanization move- 
ment*' involving communities, across 
the country. 

’‘Americanization challenges all of 
us,” Ms. Hufstedler said. “Those busi- 
ness groups in particular who lobby for 
high levels of iroraigration must make a 
far greater effort not only to support 
immigration, but also to support im- 
migrants, through. English classes, nat- 
uralization and civic education.” 

The focus of the report, entitled "Be- 
coming an American: Immigration and 
Immigrant Policy," reflects concerns 
among the commissioners that in cre- 
ating “one of the world's most suc- 
cessful multiethnicnations,” the United 
States must also reinforce toe unity that 

comes from allegiance to common prin- 
ciples and values. 

With the foreign-bom population of 
die United States steadily rising — it 
reached a record 24.5 million last year, 
or 9.3 percent of toe population — toe 
country must uphold the national motto, 
E Plaribus Unum, “from many, one,” 
the report said. 

It recommended renewed commit- 
ments to educating newcomers in Eng- 
lish and civics, improving toe natur- 
alization process add asserting the 
primacy of individual rights over the 
“collective” rights that are paramount 
in many parts of toe world. 

"As long as the United States con- 
tinues to emphasize the rights of in- 
dividuals over those of groups, we need 
not fear that the diversity brought by 
immigration will lead to ethnic division 
or disunity,’ ' the commission said. 

The panel also recommended dump- 
ing the current alphabet soup of more 
than 40 nonimmigrant visa categories. 
Instead, it proposed a streamlined sys- 

tem that would group visas into five 
broad classifications. 

Among its most far-reaching recom- 
mendations was a previously reported 
jrtan ^ to ^abo lish^the Immigration and 

functions to toeJustice, State^andJ-jpbor 
Departments . Jh ■■ v . ... 

The service" suffers from “mission 
overload” and performs too tnany.func- 
tions, some of them in conflict with each 
other, the panel said. 

In opposing that proposal the Im- 
migration and Naturalization Service 
has found some unlikely allies. 

Immigrant support groups, immigra- 
tion lawyers and business groups crit- 
icized toe idea, expressing concern es- 
pecially about turning over decision- 
making powers on all immigration ben- 
efits to tine State Department. 

The plan “would recklessly disperse 
the agency's functions in a way that 
would likely make a bad situation 
worse," toe National Immigration For- 
um said. 

Gingrich Seeks 
Debate onTaxes 


sional Republicans say they hope to 
expand a week of hair-raising air 
legations of abuse by Intemal Rev- 
enue Service officials into a larger 
crusade to remake the nation’s en- 
tire tax code. 

• The speaker of the House, Newt 
Gingrich, Republican of Georgia, 
says be wants to begin a six-month 
'‘national debate” on. alternatives 
to the current income-based fax 
system, and promised legislative 
action before the end of 1998. 

Bat if the past is any guide, that 
effort won’t be easy. Republican, 
leaders learned two years ago that it 
is far more complicated to translate 
that hostility into broad-based sup- 
peat for specific tax reforms. 

Some Republicans, among them 
the House majority leader, Dick 
Armey of Texas, ami a presidential 
candidate in 1994, Malcolm For- 
bes, champion a flat tax that would 
tax individuals at the same set rate 
beyond a certain income threshold; 
some, including Bill Archer of 
Texas, chairman of the House 
Ways and Means Committee, favor 
a national sales tax; others advocate 
more moderate variations of the 
current system. 

That debate showed too that as 
soon as politicians moved from at- 
tacking the income-based fax code 
to a substantive discussion of what 
type of tax system should replace it, 
they were as likely to win the pub- 
lic’s ire as its approval 

Voters’ initial enthusiasm for die 
. flat tax, for example, cooled 
Pi quickly as they learned that tike 


The appeal of a national sales tax 
as experts warned that, 
icr with state and local levies, 
might mean sales tax rates in 
s of 30 percent (WP) 

st of Inquiries: 
558,834 So Far 

Washington — as pressure 

builds for the appointment of more 
independent counsels, the special 
prosecutors already examining the 
conduct of President Bill Clinton, 
his wife and other administration 
officials have spent more than $44 
million in less man three years, the 
General' Accounting Office says. 

In a report released Tuesday, toe 
agency said that the four indepeod- 
• eat counsels appointed to inves- 
tigate toe Clinton, administration 
(had spent $8,747,706 from Oct 1, 
*3.996, to March31, 1997 l Including 
toe accounting office's latest fig- 
ures, toe Investigations have cost a 
total of $44,558,834 so far. (WP) 


Hillary Rodham Clinton, referring 
to ho- daughter's departure for col- 
lege as she embarked chi a campaign 
to improve child care for working 
parents: “I'm looking for ways to 
divert myself from my empty nest, 
and I’ll take just about any dinner 
invitation I can gee ” (NYT) 

Tackling Forced Child Labor 

An Import Ban Is Expected to Win Quick Approval 

By Steven Greenhouse 

New York Tunes Service 

NEW YORK — As a result of a quiet 
maneuver by House and Senate conferees. 
Congress is expected to enact a law that 
would ban the country from importing goods 
made by forced or indentured child laborers, 
children who are sold into bondage by their 
parents and who must often work a decade or 
more to bay their freedom. 

The bill’s sponsors say it will greatly affect 
the importing of rugs and carpets from Pakistan 
and India, where some ’children as young as 4 
are sold into bondage. Human tights orga- 
nizations estimate that South Asia has more 
than 15 millio n indentured child laborers. 

“This is extremely important as a moral 
issue,” said Representative Bernard Sanders, 
an independent from Vermont who introduced 
the legislation in the House. “Consumers in 
the United States of America shouldn’t be 
purchasing goods made by children who are 
indentured servants and virtual slaves. We 
should not do business this way. and we 
should not be perpetuating this system.” 

Some experts on child labor question how 
effective the measure will be, suggesting that 
children will be exploited as long as poverty 
remains endemic worldwide. The conference 
fall that includes this measure is expected to 
pass Congress quickly, but Congress has not 
approved extra money to enforce toe pro- 
vision. Nor is it clear how the United States 
will determine that child labor is being used. 

Children ’s rights groups estimate that each 
year the United States imports goods valued 
at more than $100 million — for the most part 
rugs and carpets — produced by bonded or 
indentured children. The groups also say that 
indentured child laborers are used to mine 
gems or to produce leather goods and rattan 
baskets, among other things. But such labor is 
also prevalent in brick and matchstirk fac- 
tories, which export little of their products. 

The bill would not ban toe import of apparel 
or footwear made in factories mat employ 13- 
and 14-year-olds who are not indentured work- 
ers. Bat Senator Tom Harkuvan Iowa Pern o~ 
cratwho also sponsored the provision, said he 
hoped it would be a first step toward barring 
imports of all products made by children. 

i campaign to thwart direct - mail 
ms that cost senior citizens and other 
isumers millions of dollars a year has 
n begun by federal state and local law 
orcement officials and 1 ,500 private sec- 

ffite 1 miMiimtS[ J I9Q law enforeemS 
ions against fraudulent direct mail 
iemes, including one that used 200 dif- 
>nt bu siness names and bilked con- 
fers oat of $100 million a year. (AP) 

■wo new studies of adolescent girls 

re found that 1 in 4 has been sexually or 

rsically abused or forced by a date to 

-e sex against her will In addition, tltose 

o have had such experiences are far 

using dregs, and lo faft to use^con- 

r Cockrum, who fatally shot a 
old convenience store clerk dur- 
jbery has been executed by in- 

jection in Huntsville, Texas, fulfilling his 
request to be put to death. (AP) 

• An 11-year-old boy who was last seen 

selling candy for his school in Jackson 
Township, New Jersey, was strangled, of- 
ficials said, mid his death has prompted a 
round of soul searching by parent groups 
sponsor such fund-raising. A 15-year-old 
neighbor has been charged with the murder 
and with aggravated sexual assault. The 
prosecutor said he is considering whether 
to try the suspect as an adult. (NYT) 

• OJ, Simpson’s 75-year-old mother, Eu- 

nice Simpson, convinced a judge that a 
$20,000 grand piano housed for years at her 
son’s estate was really here, and therefore 
should not be seized by the family of Ron 
Goldman, fra: whose murder a civil jury 
held Mr. Simpson responsible. (CAT) 

• A student opened fire on schoolmates 

outside the high school in Pearl Missis- 
sippi killing at least two people and 
wounding six others. (AP ) 

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For Hong Kong , 6 Just a Holiday’ 

By Edward A. Gargan 

New York Tunes Service 

HONG KONG — Against the martial 
chords of “The March of the Volun- 
teers” played by a white-jacketed police 
band, the five- starred zed banner of 
Oiina was raised for the first time 
Wednesday by Hong Kong’s govern- 
ment to celebrate the 48th anniversary of 
the founding of the Communist state. 

But the celebration of China's na- 
tional day here — 48 years after Mao 
Zedong mounted the Gate of Heavenly 
Peace in Beijing and declared, “the 

communism that now rules them, 
struggle to find an identity, to And their 
place in the Chinese nation. 

Tung Oiee-hwa, the shipping tycoon 
Beijing appointed to run Hong Kong, 
bustled around town Wednesday spread- 
ing the message of patriotism, from a 
solemn flag-raising at 8 o'clock in the 
morning to a carnival in the afternoon to 
a cocktail reception for Hong Kong's 
political and business elite at dusk. 

“We in Hong Kong take tremendous 
pride in our Chinese identity,” Mr. Tung 
told the territory in a message published 
in newspapers Wednesday morning. 
“Let us take this joyous occasion to 
wish our nation continuing success." 

Bnt for other Hong Kongers, the em- 
brace of a motherland that fix* 1S6 yean 
was so distant, has not been automatic. 

“Really for me it's just a holiday,” 
said Benny Leung, an accountant at a 
textile company sagging onto a metal 
bench as his daughter ran toward a toy 
train in a neighborhood park. 

“We are Chinese. Yes. But we're 
really Hong Kong people. I don't see us 
as really part of C hina yet” 

This undercurrent of uncertainty, or 

confusion over how precisely Hong 
Kongers see themselves was reflected in 
a opinion poll released this week by the 
University of Hong Kong. 

Indeed, a shadow move than 60 per- 
cent of those surveyed by the university 
sai.d that they were not proud of having Squ; 
become citizens of China, and only 17 3 F< 

percent actually regarded themselves as 
Chinese citizens. Nearly 40 percent of 
those polled defined themselves as 
“Hong Kong citizens.” 

In part, 156 years of British rule 
shaped notions of identity and patri- 
otism here. And while no one here re- 
garded themselves as British, despite 
the fluttering Union Jacks, the 21 -gun 
salutes on die Queen’s birthday and 
“God Save the Queen,” polls over this 
decade found the flowering of a dis- 
tinctive identity as a Hong Konger. 

This identity was fueled by the pro- 
liferation of Hong Kang music. 6n- 
topop, the deeply local Hong Kong kung 
fu film genre and the emergence of a 
distinct style of written Cantonese, a 
written dialect unintelligible to a main- 
lander. Increasingly, people from artists 
to movie makers, local political leaders 
to taxi drivers instinctively called them- 
selves Hong Kongers. 

“We are a city of Chinese people but 
we’ve never been a Chinese city,' ’ said 
Margaret Ng, a lawyer and former leg- 
islator here who was faced from her 
legislative seat when Beijing installed a 
handpicked assembly. 

In Victoria Pack, annually the site of 
huge vigils on June 4 to commemorate 
the slaughter of hundreds, perhaps thou- 
sands of people on die streets ofBeijing 
and Tiananmen Square in 1989, a car- 
nival of children’s games and a Can- 
topop concert drew a steady stream of 
people enjoying this new, and rare two- 
day holiday. 

At several of the military camps of 

the People's Liberation Army, selected 
tour groups were escorted around as part 
of the army’s public relations effort to 
present a more appealing image to a 
territory where people still vividly re- 
member the killings at Tiananmen 

oreign reporters were barred from 
the camps, but miniskirted women sol- 
diers performed song-and-dance shows 
and sailors in crisp whites ushered vis- 
itors onto ships. 

But elsewhere in Hong Kong, there 
seemed to be little homage paid to the 
mother country’s founding day. 

In Fading. a town in Hong Kong’s 
New Territory, Polly Lee and Terence 
Cheng strolled down the street, glancing 
in closed shop windows. 

“We don’t feel any different,” said 
Mr. Cheng, who said be was in his 20s. 
“It's just an extra day of holiday for us. 
Anyway, how we feel depends on the 
atmosphere around us, but there’s not 
much going on. There ’re some Chinese 
flagg hanging around us, but that’s about 

Both workers in a textile factory, the 
couple admitted that in coming years 
their feelings toward China could 
gradually evolve. 

“We don’t feel any different,” Mr. 
Cheng said, “but that mig ht change.” 

At a noodle restaurant, though. 
Cheng Choc, in a T-shirt and shorts, 
rubbed his hands happily when the sub- 


you're Chinese, you should be proud, 

He slurped down the last of his 
noodles. “I’m taking my kids out to 
dinner tonight,” he said. “In the past, 
there wasn't much celebrating on this 
day. and I didn’t feel any different But 
it’s special this year.*’ 

Fires and Smog Spread in Indonesia 


continued to spread un- 
checked across Indonesia on 
Wednesday, and die dense 
smog they cause brought an- 
other day of choking and 
misery to mnch of Southeast 

Jakarta’s deadline for 176 
plantation and forestry. 

companies to prove they were 
not responsible for the blazes 
passed unheeded. 

The finger-pointing con- 
tinued: Officials blamed 
plantation and forestry own- 
ers, who in turn blamed small 
farmers, who blamed the gov- 
ernment But everyoae 
agreed that the El Nino effect 
the weather pattern that has 

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brought drought to much of 
the region, was making mat- 
ters worse. 

Singaporeans got some 
good news. however. 
Weathermen forecast four to 
six days of scattered showers 
by Oct. 15 and two days of 
widespread rain, perhaps 
bringing some respite from 
the smog. 

Malaysian firemen battling 
their own forest fires in the 
state of Pahang had trouble 
either finding or reaching the 
hot spots, in part because the 
smog blanketing the region 
made it difficult to see the 
smoke from the local fires. 

* *The fires are not big as far 
as sighting goes. You don’t 
see flames of fire,” said 
Yahya Madis, deputy director 
of the Fire and Rescue Ser- 
vices Department in Pahang. 

In Jakarta, a forestry expert 
said “quite a lot of fires” 
were now burning in eastern 
Java, the country's most pop- 
ulous island, which had es- 
caped most of the smog. 

Dennis Dykstra, deputy di- 
rector-general for the Center 

for International Forestry Re- 
search. said he had seen 
flames roaring through a pine 
plantation owned by the 
Forestry Ministry near the 
town of Malang, about 90 ki- 
lometers (55 miles) south of 
Indonesia’s second-largest 
city, Surabaja in eastern 

“People had been burning 
off fields, and the flames es- 
caped into f wests in the hills 
near Malang.” he said. 

A Forestry Ministry 
spokesman said it had yet to 
receive responses from 176 
plantation and forestry 
companies ordered to docu- 
ment whether or not they had 
been responsible for illegally 
setting fires to clear land. 

The Indonesian govern- 
ment has threatened to revoke 
the licenses of companies 
found to have set fires to clear 
land. The companies operate 
in the worst-hit areas on 
Borneo and the island of 
Sumatra. But timber barons 
blame small fanners who use 
a slash-and-bum method to 
clear land. 

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Hong Kong’s leader, Tung Chee-hwa, applauding students who took part in ceremonies staged by thd- 
government Wednesday to celebrate the 48th anniversary of the founding of China’s Communist state.. 



A Rebuke for Cli 

By David Stout 

New York Times Service 

WASHINGTON — A House com- 
mittee has dealt a sharp if largely sym- 
bolic rebuke to the Clinton adminis- 
tration’s C hina policy, just four weeks 
before President Jiang Zemin is to come 
to Washington, by voting to deny visas 
to Chinese officials who violate human 

The bill, approved in a 22 to 18 vote 
by the Committee on International Re- 
lations, was one of several meant to 
challenge the administ ration's stance on 
China as President Bill Clinton prepares 
for Mr. Jiang’s state visit, the first to the 
United States by a Chinese leader in a 
dozen years. 

The bill would deny visas to military 
or civilian officials guilty of religious or 
political oppression, and to members of 
eight religious organizations that co- 
operate with the Chinese government 
But it would not affect Mr. Jiang or 
other cabinet-level Chinese officials, 
and it would allow Mr. Clinton to clear 
the way for any official to visit the 
United States by declaring that the visit 
was in the national interns L 
Congressional staff members famil- 

iar with the bill's history said the mea- 
sure probably would be voted on next 
week by the foil House, where its pros- 
pects are uncertain. 

If it does clear the House, it would go 
to the Senate, where its chances are even 
slimmer, according to congressional of- 
ficials, speaking on condition of an- 

Finally, Mr. Clinton could veto the 
bill, should it ever reach his desk, and be 
fairly confident that the veto could not 
be overridden, congressional staff 
members said. The Clinton adminis- 
tration has strongly opposed die mea- 
sure, asserting that China could retaliate 
by denying visas to many Americans. 

An administration official, who 
spoke on condition of anonymity, said 
the committee’s action was “not help- 
ful” and could thwart efforts to raise 
human-rights issues in talks with 
Chinese leaders. 

One of the measure's sponsors. Rep- 
resentative Dana Rohrabacher, Repub- 
lican of California, said denying visas 
would tell the Chinese that “we don't 
want die ghouls of the world 'to cpme • 
here.” • ' . 

But Representative Lee Hamilton, 
Democrat of Indiana, . said the bill 

* ‘points us in the direction of cutting toff 
dialogue with China, in the direction^ 
disengagement from China, in the di- 
rection of making China the enemy.' 1 

The committee also recommended 
increasing Radio Free Asia’s funds 'to 
$40 million a year, from $30 miHionAi 
addition, it urged the Clmton admin- 
istration to provide Taiwan with better 
missile defenses if Taiwan requests 
them. T „ l 

The deputy assistant secretary of state 
for East Asia, Susan Shirk, said me 
missile-defense recommendation 
would be viewed by the Chinese as “a 
hostile measure” and cause some 
ruption in American planning for the 1 
summit meeting. V y 

Representative Amory Houghton ft., 
a New York Republican who is oneibf 
four Republicans to oppose the vi&- 
denial measure, equated it to “poking a 
finger in the eye” of the Chinese while 
the United States is supposedly tryinglo 
learn how to deal with them. r 

“It think it's a dumb idea.” Mr. 
Houghton said. The congressman i£ a 
former chief executive ofCorqing Inc., 
founded by his family. 'He said his ex- 
perience in international trade helped'to 
determine his vote. _ 

Indian-Pakistani Guns Duel Again 

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SRINAGAR, India — India and 
Pakistan battled with artillery in Kash- 
mir again Wednesday, a day after 20 
people were killed in heavy shelling 
along their disputed border. Indian au- 
thorities said. 

Ad Indian military spokesman said 
the artillery firing started in the morning 
in the Uri and Kupwara sectors in north 

There were no reports of casualties, 
and the firing tapered off in the af- 
ternoon, with only intermittent ex- 
changes taking place after that. 

Uri is about 100 kilometers (62 miles) 
and Kupwara 87 kilometers north of 

Srinagar. Both are near the border with 

The firing was the latest outbreak of 
shelling along the 720-kilometer line of 

At least two dozen people were killed 
along the disputed boundary in shooting 
that intensified in August and continued 
into early September before tapering 

India and Pakistan accused each other 
of starting the firing on Tuesday in 
T -flrlralfh next to Kashmir. India accused 
Pakistan of killing 17 Indian civilians 
and wounding more than 30 with “de- 
liberate apd indiscriminate” bombard- 


An official in Jammu, the Indian 
state's winter capital, said Pakistani 
troops had fired more than 2,000 rounds 
of 105mm shells. 9,000 small air-de- 
fense shells, 600 rounds of 82mm sheQs 
and two anti-tank missiles. [ - 

But military sources in Pakistan ac-j}' 
cosed the Indian side of starting the 
firing, which they said killed three 
Pakistani civilians and wounded seven. 

Pakistani forces retaliated, tutting 
only military targets and inflicting 
“heavy casualties," they said. 

India’s Foreign Ministry said on 
Wednesday that it had proposed a hot- 
line linking commanders on opposite 
sides of die border. 


VI !■ 


i' • |i 

4 ' 

Indonesia Preparing to Re-Elect 
Suharto to a 7th Term, if He Runs 

JAKARTA — President Suharto took the first step 
Wednesday toward his likely re-election when a 1,000-mem- 
ber assembly was sworn in to choose a head of state next year 
the world's fourth most populous nation. 

While Mr. Suharto, 76, has not formally announced wheth- 
er he will stand for a seventh consecutive five-year pres- 
idential term, there is almost no doubt that be will be re-elected 

Soldiers, volunteers and aviation investigators from Bri- 

Tuesday for the “blackboxes,” which conta^nfight daiaand 1 
cockpit voice recorders that could sbed light on wbat caused 
the crash. 

The police arrested at least 32 people accused of looting 
money, jewelry and clothing in the hours after the Garuda 
Airlines Airbus crashed Friday in a jungle highland south of 
Medan’s Polonia Airport 

The chief investigator, O. Diran, said at the crash site tb&l 
although finding “ihe black boxes is not a mos t,” the in- 
vestigation would be easier and faster if they were re- 
covered. (At ) 


6 Black Boxes ’ Elude Searchers 

BUAH NABAR, Indonesia — Searchers sloshing through 

In this Friday’s 

romorwi symboOcaUy to the rank of five-star general 0 D , -ny m v r\ iy - 

The People’s Consultative Assembly is made-up of 475 Z tSOTTlbS Wound lO in Old UellU ; 

. NEW DELHI — Two bombs exploded in a bustling old 
quarter of the Indian capital Wednesday, wounding |6 
people. ‘ 

Toe explosions occurred at about 5.30 P.M. in the crowded 
Sadar Bazar area, which includes many of the city's wholesale 

The police sealed off the area and details of the explosion 
were not immediately available. 

Some of the wounded were reported to be in serious 1 
condition, the agency Press Trust of India reported. 

In July, explosions in the same area wounded 12 people. No 
one claimed responsibility for those blasts, but Muslim and 
Sikh separatists have been blamed for previous explosions in 
the city of 10 million people. (An 

Afghans Assail Pakistani Attack 

KABUL — Opponents of the ruling Taleban forces in 
Afghanistan accused Pakistan of bombing their northern 
stronghold Wednesday, weakening defenses in the only area 
outside the Islamic militia’s controL 
The opposition group — Hezb-e-Wahadat — also accused 
the United Nations of ig noring the Pakistani attacks. The 
organization’s troops are the Last ling of defense against 
Taleban units advancing on Mazar-e-Sharif, the opposition’s 
last big stronghold. ' 

“I have a big complaint about the United Nations,” sad 
Haji Mohammed Mohaqiq, the Hezb-e-Wahadat command?* 
“Pakistan is sending its jets to bomb us, they are massacring 
ou ^if? ple and A* United Nations is ignoring it •’ , ' 

Pakistan has repeatedly denied aiding the Taleban religious 
army, although many of its members studied- in Pakistan 
whiye more than 5 million Afghans lived in exile during m* 
1980s Soviet invasion of Afghanistan. - ■ v*' 

;<• • 
‘•v - 







■V. ' 

/ 1 

/ » 

The Car Column 

Citroen Xsara 




:»■ p ' 








i iParis Tells 

Stays Out 

| I For Now 

\ l 

: By Craig R. Whitney 

• i Ne*/ York Tima Servict 

t * PARIS — France told the 
! NATO allies Wednesday that 
: Branch officers, absent from 
: die alliance's military com- 
| mand structure since 1966, 
t would not rejoin when it is 

* reorganized ar the end of this 

■ year because the United States 

: was not ready to let a Euro- 
, ^pean^oflScos take over die key 


southern cooknaod in Naples. 

“The al$es told roe they 
wanted France to became a 
; full member,” Defense Min- 
ister Alain Richard mid at a 
: meeting of the North Atlantic 
Treaty Organization in 
Maastricht, the Netherlands. 
‘*1 told than that, as we had 

Paris Whiffs a Bit of Fresher Air 

NATO’s Javier Solatia Madariaga, right, and General Clark chatting Wednesday. 

made in the Europeanization 
of the command structure, we 
were not in a position today to 
• change a 30-year policy.” 

Under Secretary of De- 
■ fense Walter Slocombe of the 
"United States said, * ‘They left 
. very little doubt about what 
i'Uthe result will be.” 

;■* President Claries de 
Gaulle polled Fiance out of 
NATO's integrated military 
•Structure, though not out of 
. the alliance itself, in 1966, in 
.protest against what he saw as 
American domination. 
j : . ; His conservative Gaullist 
^successor, Jacques Chirac, 
-jaid after his election in 1995 
..{bat France could go back in if 
J jhe United States ceded more 
■^authority to European com- 
manders, but later manta 
j European control of NATO's 
» Allied Forces ^ Southern 

-[condition of Frendi return, 
i. . Since the Naples post has 
V }■. always been held by an Amer- 
"ican four-star admiral, yul 
Since its biggest military asset 
; .in wartime would be the UJS. 
Sixth Fleet, the Clinton Ad- 
v ministration b»nr«H. 

" , The coup de grace came in 
..June, with the election of a 
"Socialist govern m ent under 
Prime Minister Lionel Jospin, 
..'who had been critical of Mr. 
Chirac’s ..negotiating tactics 
’’and dubious about the ben- 
n'efits of putting French of- 

ficers in peacetime under 
U.S. command. 

France does not dispute 
overall American leadership 
of the alliance or the right of 
the United States to name the 
Supreme Allied Commander, 
now General Wesley Clark, 
but it wants to create what it 
calls a European defense 
identity within NATO. Offi- 
cials in Paris hoped that a 
reorganization tire alliance 
plans to approve in December 
would put European officers 
in charge of the two major 
ground commands, north and 
south, under General Clark. 

The northern European 
/vwrtmaiyl is in European 
hands, but American officials 
repeated Out as long as the 
Sixth Fleet and the U.S. Air 
Force constituted most of the 
combat strike power at the 
disposal of the southern com- 
mand, it »hnuM remain in 
American hands. Mr. Chirac, 
by then in a diplomatic im- 
passe largely ofnis own mak- 
ing, told French atnhflssaffomi 

at die end of August (hat the 
decision to go back into the 
military structure would be 
marig only when a European 
took charge in Naples. 

France would not block die 
rest of the NATO c omman d 
structure reform, Mr. Richard 
told his fellow rnmiaws 
Wednesday, and it would con- 
tinue to participate fully in 
NATO operations like the 
U.S.-led peacekeeping force in 
Bosnia, where General Clark 
and other officials say the 
United States is fully satisfied 



Ss ... 

Irish to Investigate Official 

DUBLIN — Prime Minister Bertie Ahem said 
Wednesday that die government would set up a special 
tribunal to investigate the admission by Ireland's foreign 
minister, Ray Burke, that he accepted an envelope con- 
taining about $50,000 in 1989 from two men he described 
as strangers. 

Last month, Mr. Broke admitted to Parliament that he 
had accepted the money from two strangers who knocked 
on the door of his home. He took die money while more 
than 283 hectares (700 acres) of land near Dublin were 
bring rezoned from agricultural to commercial use. 

Mr. Burke said that he later learned that the men were 
officials of a real-estate development company, but that 
they had neither asked nor received any favors. (NYT) 

EU Appeals on Climate Change 

BRUSSELS — hi an attempt to persuade other West- 
ern countries to accept European targets to curb global 
warming, the European Commission called Wednesday 
for urgent action to limit manmade changes in climate. 

Hoping to spur United Nations climate talks, the com- 
mission argued that the European Union target of a 15 
percent cut in greenhouse gases by 2010, compared to 
1990 levels, was “an environmental necessity” that was 
“ technicall y and economically feasible.” 

World environment ministers will meet in Japan in 
December to try to agree on a treaty committing in- 
dustrialized countries to specific reductions in emissions 
which are said to cause global 

of greenhouse gases, wl 

Denar el Admits EU Problems 

ANKARA — President Suleyman Demirel acknowl- 
edged Wednesday that Turkey must overcome problems 
such as those ova: human rights to attain membership in 
the European Union. 

Turkey has a longstanding application to join the EU, 
. but has been rebuffed by the group, which says that 
- Turkey has to sent out economic woes, rectify its poor 
" h uman rights record and resolve the Cyprus dispute with 
Greece before it can be admitted. 

lion in the EU are 
l norms in aQ 

_ _ Mr. Demirel 

said in a speech for the opening of Parliament “Dnkey 
should no longer be a country that is listed among 
countries that violate human rights.” (AP) 

Blair Talks Tough to Party 

BRIGHTON, England — Prime Minister Tony Blair 
bluntly told critics in his Labour Party on Wednesday (bat 

they could not duck the tough spending decisions needed 

to prepare Britain for the new mil le nn ium. 

Rvemonths to the day since he swept to power onatide 

ofeophoria that has yet to recede, Mr. Blair was famng the 

first real test of the willingness of Labour members to 
back his intention to Mast away some of then most 

cherished ideals. .. . 

Labour’s annual conference, which saw Mr.Blair on 
Tuesday raise the banner of “compassion with a hard 
edge,” was due to vote on govramnent plans to end free 
university tuition and on whether to demand the ren- 
aticualizaiion of Britain's railways. Bo* issues are dear 
to toe heart of left-wing activists, who tore found it hard 
to keen up with the pace of change since Mr. Blairbecame 
Labom reader three years ago. (Reuters) 

with French cooperation. 

“France announced a con- 
structive cooperation, al- 
though it will not fully in- 
tegrate for the moment.” the 
German defense minister, 
Volker Roche, said in 

Secretary of Defense Wil- 

liam Cohen is expected in 
Paris later this week for bi- 
lateral talks with Mr. Richard. 
“We are going to focus on 
building the part of the re- 
lationship that works, not 
where we disagree,” a 
>kesman for Mr. Cohen, 
Bacon, said Wednesday. 

The Associated Press 

PARIS — Many Paris commuters 
woe forced to leave their cars at home 
and the prime minister rode in an electric 
car Wednesday, after heavy smog 
pr om p ted new pollution-fighting mea- 
sures in the French capital. 

After a pall of smog triggered a max- 
imum level-three pollution alert Tues- 
day, roily private vehicles with odd- 
numbered license plates were allowed 
on the roads, barring about 1 millio n of 
toe estimated 3 million vehicles that 

enter Paris daily. 

The authorities reported only a level- 
one smog alert Wednesday, and En- 
vironment Minister Dominique Voynet 
said the driving restrictions would not be 
in force Hmxsday. 

Taxis, buses, commercial vehicles 
and car pools with three or mare people 
were exempted from the roles, which 
appeared to have cut traffic and helped to 
dear up the air. 

More than 1,000 extra police officers 
were deployed at 100 inspection points 
around the capital to enforce the new 
anti-pollution law, France Info radio re- 
ported. The law allows cars with odd or 
even-numbered license plates on toe 
streets on alternate days while the alert is 
in effect 

The driving ban did not stop many 
drivers from breaking toe law, cursing a 
three kilometer (two mile) traffic jam as 
police handed out tickets near Orly Air- 

t south ofParis. Motorists faced a900 
($150) fine, though many drivers 
were only given warnings. 

The police in Paris reported that 
traffic was down 15 to 20 percent 

Trying to set an example. Prime Min- 
ister Lionel Jospin and four other cabinet 
members, including Mrs. Voynet, ar- 
rived in electric cars at Wetfnesday’s 
weeldy cabinet meeting at (be Elysee 

Weak winds and unseasonably warm 
weather had led to a dangerous buildup 
of nitrogen, dioxide in toe region around 
toe capital, leading to the level-three 
alar Tuesday, 

Subways were filled with commuters 
who were frustrated with the rules but 
resigned to doing something about the 
bad air that cast a yellowish haze across 
(he city and washed out the Eiffel Tower 
and toe skyscrapers of La Defense, die 
financial district is toe western suburbs. 

“I think it*s a good tiling ,” said 
Christopher Clement, 38, a film pro- 
duction technician. “The smog just got 
intolerable. People got used to iz in 
Rome, so we can too. 

But Mr. Clement complained that tak- 
ing the subway to clients around town 
could add hours to his commuting 

“They should allow motorcycles,” 
he said, adding that he was forced to 
leave his at home because of the odd- 
even rules. 

The former environment minister 
who sponsored toe anti-pollution mea- 
sures early tins year was among Wed- 
nesday’s subway commuters, “ft’s not 
p unishm ent; it’s a matter of taking 
charge of a situation,” Corinne Lepage 
said. “Hungs will never be tire same 

Her successor, Mis. Voynet, head of 
toe Green Paxty, told the newspaper Lib- 
eration toat toe antirsmog law was only a 
stopgap measure and that ^preventive 
measures are needed. “The real solu- 
tions are an improvement in mass trans- 
it,” she said, ‘'and toe development of 
clean fuel. It’s not right that diesel, 
which pollutes most, is taxed less.” 

The French health minister, Bernard 
Kouchner, went so tor as to call for a ban 
on tourist buses, which he said were 
major contributors to smog in the cap- 

“In Florence, they halt toe buses at 
tiie city limits,” he said in an interview 
with Le Monde, “ft won’t stop one 
tourist from coating.” 

The law’s other measures include 
lower speed limits, free parking for local 
residents and reduced output at an oil- 
burning power plant outside the capital 

The regional transport company ad- 
ded extra trains, buses and subway cars 
to its' routes. But it did not regirter a 
significant increase in traffic -dunng the 
early commuting hours, a transport of- 
ficial said. 

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In Chile, Cold Heart for Disabled 

By Calvin Sims 

Ne h - York Tones Service . 

COLIN A, Chile — Ai a makeshift 
morgue in a scboolbouse in this suburb 
of Santiago, 20 bodies lay unclaimed, a 
poignant illustration of how this society 
treats its mentally and physically han- 

They were among the 30 children and 
adults who died when lire engulfed Los 
Ceibos, a home for the mentally re- 
tarded. By late Tuesday, relatives of only 
10 of the dead bad come forward to 
claim the bodies. 

In Chile and elsewhere in Latin Amer- 
ica, people often react to the disabled 
with a sense of shame, distance and 
helplessness, leading many families to 
abandon them in institutions operated by 
well-meaning but overburdened private 
foundations and church groups. Gov- 
ernments provide little money. 

“They deposit these poor, helpless 
children in institutions as they would a 
check at a bank,” said Sergio Prenafeta 
Jenkin, executive secretary of the Na- 
tional Fund for the Disabled, a gov- 
ernment agency. 

‘ The only problem,' * he said, “is that 
many never come back to see them, and 

they remain in these facilities for the rest 
of their lives.” 

Many of the victims were burned be- 
yond recognition when an overheating 
electric lamp set off a fire early Friday 
that quickly engulfed a building housing 
the most severely disabled residents. 
Many were heavily medicated or in 
wh'eelchairs and could not escape. The 
fire left three other residents injured. 

Some relatives of the victims at the 
home, operated by a nonprofit group 
called the Limited Child Assistance 
Foundation, said the eight attendants on 
duty the night of the fire had not been 
enough to cope with the 140 residents. 

While many industrialized countries 
discourage warehousing the disabled in 
institutions and have passed laws to help 
them integrate into society, less de- 
veloped nations like Chile still consider 
a mentally handicapped person an ab- 
erration or embarrassment who should 
remain hidden from society. 

In the United States, the disabled have 
never been more visible, taking part in 
everything from work to organized 
sports. In Chile and other Latin Amer- 
ican countries, they are rarely seen in 
public. When they do appear, people 
often point, giggle or treat them as if they 


r~' V 

should have remained indoors. 

‘‘We don't care about the disabled in 
Chile,” Mr. Prenafeta said, “because 
we are a society that places Too much 
value on success, ana we leave those 
who do not prosper to fend for them- 
selves. How can disabled children fend 
for themselves?” 

Officials of the nonprofit foundation 
that operates Los Ceibos said half of the 
3.500 residents in its 28 homes 
throughout Chile had been abandoned 
and were not visited by relatives. 

Guillermo Vidal, vice president of the 
foundation, which is know by the Span- 
ish acronym COaniL said many families 
of the disabled were so poor that they 
were incapable of caring for die mentally 

“It would be ideal if every family 
would assume its responsibility for these 
children,” Mr. Vidal said, “but many of 
these kids come from families that live in 
such extreme poverty that they receive 
much better care in our hands. ' 

About 400,000 of Chile’s 13 million 
people are considered mentally disabled. 

About 35 percent of Chile's people live 
below the poverty line; the average 
monthly salary is die equivalent of about VIOLENCE IN KOSOVO 
$175. day In Pristina during a de 

VIOLENCE IN KOSOVO — Serbian police officers in plainclothes arresting ethnic Albanians^ Wednes-j 
day in Pristina during a demonstration calling for classes in the Albanian language and. more fodhl con* - "' 

BRAZIL: OnEve of Pope's Visit, Church Presents a New Face 

Continued from Page 1 

not unlike Jehovah's Witnesses. 

The church, experts say, must re- 
spond. On the eve of the Pope's third 
visit here, this time for the Second World 
Conference of the Family, Brazil finds 
itself on the front line in the battle for the 
region '5 souls. Research reports indi- 
cate, for instance, that this sprawling, 
tropical metropolis with a penchant for 
string-bikinis and Carnival is only 65 
percent Catholic today, compared with 
85 percent in 1970. Nationwide, die In- 
stitute of Geography and Statistics says, 
Brazil was officially 83.7 percent Cath- 
olic in 1991. compared with 91 percent 
in 1970. 

While some former Catholics simply 
dropped religion altogether, the majority 
found greater fulfillment in the different 
message and methods offered by 
Brazil's high-energy evangelical 
churches, some of which have grown to 
international status and now count mil- 
lions as followers worldwide. 

Indeed, even as the local Catho lic 
Church and the City of Rio busily pre- 
pare for the Pope’s trip, Sao Paulo rolled 
out the red carpet this week fix' 700,000 
Protestants during the Second World 
Congress of the Assembly of God. Pres- 
ident Fernando Henrique Cardoso even 
attended the group's religious ceremo- 

ny, greeting the crowd with a boisterous 

“Yes, we are very concerned, and 
yes, the Pope is concerned,” Bishop 
Karl Josef Roroer of Rio said. “The 
Pope's visit, besides addressing the very 
senous issue of the family, will reaffirm 
the church'’ in BraziL “It is a loving 
gesture to Christians in Braril” at a time 
when “we are addressing the spread of 
these ‘sects’.” 

For the Vatican, the stakes are high. 
Brazil is the geographic and economic 
heart of Latin America, home to the 
world's largest concentration of Roman 

Although conversions are happening 
across class lines, the real struggle for 
the church is in die sprawling urban 
shantytowns and poor rural enclaves 
where evangelists continue to build new 
churches at a rapid pace. And here, one 
of the Catholic Church 's new weapons is 
Deusdete Alves. 

In the dense hilltops above Rio, Mr. 
Alves, 37, is knocking on a door in the 
damp evening rain. His group of five 
“newmissionaries,” ages 19 to 67, have 
climbed a narrow, steep pathway in the 
Rocinha shantytown, considered South 
America's largest urban slum. 

“Hello!" he cries. “It’s die Catholic 
Church l" 

The door of a shack creeks open, and 

Zelda Gomes de Souza, mother of five, 
peers out She seems hesitant, but warms 
up after a bit of light banter about the 
Pope’s approaching visit. She invites the 
group in, and explains she is a lapsed 
Catholic who does not go to Sunday 
Mass. She’s tried out the Universal 
Evangelical Church, she says, but is not 
quite sure about them. “They keep on 
asking me for money,” she says. 

“But you can be Catholic by just 
coming to our Bible service on Wednes- 
days,” Mr. Alves says. “We’re all equal 
there. There is no priest preaching to 
you, telling you what you have to do. No 
one is better than anyone else. Every- 
body can express their feelings about 
God exactly as they want to." 

Although experts say such teachings 
go against the Vatican's laws, the Cath- 
olic Church in Brazil has had to rely on 
these lay “celebrations” conducted 
without priests to survive. 

Another problem experts see is that 
even as the Catholic Church modernizes 
its methods, its -teachings have stayed 
conservative. In fact, the Vatican has 
made strides to undercut the power of the 
more liberal leaders of the Catholic 
Church in Brazil in recent years, experts 
say. And the Pope’s visit to Rio, some 
analysts say, is also a show of faith in its 
arch-conservative prelate. Cardinal Eu- 
genio Sales. 

SCHOOLS: Many Forms of Alternative Education Spread in U.S. 

Continued from Page 1 

Researchers at die Education Depart- 
ment say the number of students being 
taught at home has tripled this decade 
and now exceeds 1 million. 

A new industry is emerging from that 
growth, complete with mail-order cur- 
ricula, computer learning programs, 
even centers that offer home schooled 
children a chance to socialize wife each 

Meanwhile, enrollment at private 
academies feat emphasize the Bible or 
Christian principles has doubled in the 
past 10 years. The Association of Chris- 
tian Schools International was formed in 
1980 wife about 1,200 member schools. 
Now, it includes nearly 4.000 schools 
across the country and more than 
800,000 students. 

What all of these changes mean is a 
subject of debate. Some educators look 
at how fast the alternatives to traditional 
public schools are expanding and see 
signs of profound change ahead. They 
say fee structure of public education, 
created a century ago in fee throes of fee 
Industrial Revolution, is antiquated and 
that parents nationwide seem to be 
searching urgently for new models. 

“We're in the early stages of what 
could be a very significant shift in how 
many children are educated," said Ted 

Kolderie, an education analyst at the 
University of Minnesota and one of the 
nation's leading advocates of charter 

Others contend that even though fee 
popularity of innovations such as charter 
schools seems to be jolting public 
schools out of decades of torpor, their 
impact is still marginal and may be 
destined to stay feat way. Nearly 90 
percent of students attend public 

"Most people are not going to aban- 
don public education,” said David Ty- 
ack, a professor of education at Stanford 
University. But be added: “We need to 
understand why parents are turning to 
these forms of schooling." 

The migration transcends race, class 
and geography. Charter schools are be- 
ing opened in wealthy suburbs and in fee 
poorest urban neighborhoods. Christian 
schools, often a refuge a generation ago 
for whites freeing desegregated public 
schools, have growing appeal to black 
families. Home schooling, once widely 
perceived as a dubious form of education 
used mostly by religious zealots, is go- 
ing mainstream, embraced by an array of 
professionals who are working at home 
and taking advantage of new computer 
technology that helps children l earn. 

Kathleen Moore, a psychotherapist 
who is home schooling her 7-year-old 

daughter in Boulder, Colorado, is one of 
the new converts. She spent several hun- 
dred dollars on a mail-order curriculum 
ldt and began work last month. She 
instructs her child every morning in 
reading, math and science, then has her 
spend a few hours in anew public school 
pro gra m that offers activities such as an 
or music. 

Ms. Moore said that one of fee main 
reasons she did not enroll her daughter 
full time in public education this fall was 
feat she feared the large size of classes 
there left teachers wife little time to give 
students personal attention. 

But skeptics worry about fee impact 
of charter schools on the public school 
system. Students who go to charter 
schools take along fee money a public 
district had been spending on them. Ana- 
lysts also fear that the alternatives are 
luring fee most committed parents. 

Richard Elmore, an education pro- 
fessor at Harvard University, can foresee 
a time when some beleaguered systems 
in mid-size cities become doomed. 

“There could be some very serious 
consequences,” he said. “If you get a 
bunch of charter schools and a few 
private education companies in one city, 
and they start attracting thousands of 
kids, you could lose whatever leverage 
you have left in the system pushing for 
higher quality.” 

DEAL: WorldCom Makes Surprise $30 Billion Bid for Rival MCI 

Continued from Page 1 

Nabisco Inc. by Kohlberg, Kravis, 
Roberts & Co. in 1989, WorldCom is 
proposing to pay only stock, so it would 
have no out-of-pocket expense. The am- 
algamations of Bank of Tokyo Ltd. with 

Mitsubishi Bank Ltd. and of Ciba-Geigy 
AG wife Sandoz AG were both slightly 
larger than $30 billion. 

Investors seemed to agree with fee bid. 
WorldCom ’s stock was little changed in 
afternoon trading, slipping 81.25 cents, 
to $343625, indicating its shareholders 
were not displeased by the bid. which is 
worth $4130 per MCI share. MCI 
jumped $5.9375. to $35.3125, and in 
London, British Telecom stock was up 
323 pence, at 442 pence. 

Mr. Ebbers said MCI was worth more 
to his company than to BT because the 
two American companies are similar 
and allow for cost savings. He was care- 
ful to say most of these would come from 
reducing corporate overhead and mar- 

keting costs, although he did not rule out 
staff reductions. WorldCom and MCI 
would have “far greater synergies and 
savings than BT can," he said. "They 
just don’t live here. ’ ’ 

WorldCom is offering a fixed $4130 
value of its stock as long its shares trade 
in a band of $34 to 40. MCI shareholders 
would get a maximum of 1 .2206 World- 
Com shares and a minimum 1.0375 
shares if the stock's average mice is 
outside of that range in fee 20 days 
before fee deal closes. 

British Telecom’s offer valued MCI 
at about $25 billion in November, but 
then BT reduced its bid by about $5 
billion in August after MCI warned that 
its local-telephone operations would 
lose $800 million this year and possibly 
more in 1998. 

BT would hold about 10 percent of 
WorldCom's stock, and could nave a seat 
on its board “if it behaved properly,” 
Mr. Ebbers said at a news conference in 
New York. 

Russian Defense Chief Meets NATO Peers 


MAASTRICHT, Netherlands — De- 
fense Minister Igor Sergeyev of Russia 
met NATO defense ministers for fee first 
time Wednesday and reassured fee 
United States that the Russian military 
bad tight controls over its nuclear weap- 

The spokesman for fee U.S. Defense 
Department, Ken Bacon, said the as* 
surance was given by Mr. Sergeyev in a 
cordial bilateral meeting after Defense 

Secretary William Cohen raised con- 
cerns about reports that Russia was 
transferring nuclear technology to Iran. 

At an equally friendly get- to- know- 
you meeting with the alliance’s 16 mem- 
bers, Mr. Sergeyev said Russia — which 
struck a historic partnership wife NATO 
this year — would send a military liaison 
officer to the alliance’s Brussels 
headquarters in October or November. 

Mr. Sergeyev once was the chief of 
Russia’s strategic rocket forces. 

Mr. Ebbers said he thought British 
Telecom would be willing to work with 
his company. “It is an inconceivable 
conclusion for me that they would not 
want to participate,’ ' he said. 

“British Telecom is going to be 
shocked to own a stock that grows 50 
percent a year," he said. “They are not 
used to that.” 

Asked why WorldCom waited until 
now to make its approach, Mr. Ebbers 
said his company could not have outbid 
the original BT offer by a sufficient 
amount to make it advantageous for all of 
the parties. The latest BT cash-and-stock 
bid, however, was worth only $32.64 a 
share when it was made in August. 

If the bid succeeds, Mr. Ebbers said 
WorldCom and MCI customers might see 
price reductions because of the cost sav- 
ings and the merged companies ' ability to 
offer products to a larger audience. 

In addition, WorldCom is hoping to 
show savings of $800 million in 1999 as 
a result of fee deal and $1.8 billion a year 
by 2002. If fee companies do not ne- 
gotiate with WorldCom, MCI’s share- 
holders will have a chance to vote for fee 
takeover later this year. 

Mr. Ebbers ’s appetite, however, 
seems to be large. During his present- 
ation, he said that ‘ ‘After we get our deal 
finished wife MCI we might acquire 
British Telecom.” 

Although a later comment indicated 
be was not serious about feat, he also 
said several times that WorldCom had 
considered acquiring AT&T Corp. be- 
fore making the MCI bid. 

When asked if he was “serious or 
kidding” about his interest in AT&T, 
Mr. Ebbers said, “Both.” 


TV Facilities Seised 

Continued from Page l 

dons handed over to the Plavsic sup- 
porters in towns such as Brcko, damaged 
fee drive begun this summer to isolate 
Mr. Karadzic and turn western Bosnia 
over to Mrs. Plavsic. 

In the operation Wednesday, by con- 
trast, heavy security was set up near fee 
towers to prevent people from reaching 
fee sites. Combat helicopters hovered 
over the transmitter on Mount Trebevic, 
near Sarajevo, and troops from the 
peacekeeping force blocked the roads 
with armored personnel carriers. 

NATO officials in Sarajevo said the 
troops involved in the operation were 
American, French, Italian, Scandinavian 
and Polish. 

Russian soldiers also participated by 
setting up roadblocks at several loca- 
tions, fee officials said. There were no 


reports of violence. 

Under an agreement reached SepL 2, 
fee Bosnian Serb hard-liners in Pale 
agreed to stop inciting television view- 
era against international organizations, 
including the 35,000-strong peacekeep- 
ing force. 

Shortly before fee agreement. Pale 
television broadcast footage calling the 
peacekeeping operation “an army of 
occupation” and equated its presence to 
that of fee German Army during World 
Ward... . 

For the last few days, the television 
broadcasters alternated days wife the 
pro-Plavsic studio in Banja Luka. The 
nightly broadcasts saw fee two factions 
spew vitriol and hate at each other. 


Decully Foe Released 

Continued from Page 1 

in Mr. Netanyahu's judgment, appar- 
ently belonged to King Hussein. 

What created it was a cloak-and-dag- 
ger episode last week in which. Jordanian 
officials said, Israeli agents using exotic 
technology tried to km another Hamas 
leader, Khaled MeshaL in Amman. 

That operation, if confirmed, would 
mark the first such Israeli strike in fee 
capital of an Arab country wife which it 
is formally at peace. It deeply embar- 
rassed fee Hashemite monarch, already 
engaged in delicate political negoti- 
ations wife his own Islamic opposition. 

Without naming Israel, but hinting 
strongly feat the Israelis were respon- 
sible, King Hussein said Tuesday in Za- 
rqa that the government knew well who 
was behind the attack, which left Mr. 
Meshal in intensive care at a military 
hospital outside Amman. 

Twice in the speech, he called on Mr. 
Netanyahu to order Sheikh Yassin's im- 
mediate release, and semi-official Jor- 
danian newspapers reported feat fee 
monarch demanded Sheikh Yassin in 
exchange for the two alleged agents of 
Israel’s Mossad intelligence organiza- 

The attack on Mr. Meshal and his 
bodyguards was initially described as 
part of a traffic dispute involving two 
Canadian tourists. 

But Jordanian and Palestinian offi- 
cials said that interrogation of fee men 
disclosed that they held Israeli nation- 
ality as well and had come on a mission 
to kill the Hamas political leader. 

Moshe FogeL, chief of Israel's gov- 
ernment press office, declined to con- 
firm or deny those assertions. 

According to Abdel Aziz RantissL a 
Hamas leader in fee Gaza Strip, Mr. 
Meshal ’s assailants attacked him with a 
device that poisoned him. 

Mr. Meshal ’s bodyguards gave chase, 
and fee two men fled first by car and then 
on foot As they were fighting with the 
bodyguards on an Amman street, po- 
licemen arrived and arrested them. 

“The Israelis, in their terrorist attack 
against Meshal, insulted fee Jordanians 
because they attacked on Jordanian ter- 
ritory," Mr. Rantissi said in a telephone 
interview. “So they tried to correct their 
mistake against King Hussein by re- 
leasing Sheikh Yassin.” 

The Muslic cleric, 61, who is quad- 
riplegic and in poor health, received a 
life sentence in 1989, a year after es- 
tablishing Hamas as an offshoot of the 
pan-Arab Muslim Brotherhood. A mil- 
itary court convicted him of ordering fee 
murders of Palestinians deemed to be 
collaborating wife Israel. 

In April, Mr. Netanyahu gave up Is- 
rael’s bid for extradition of Mousa Atm 
Marzook, a senior Hamas political lead- 
er then living in the United States. 

Congo to Send Force 
To Congo Republic 

KINSHASA, Congo — President 
Laurent Kabila said Wednesday that 
be would send soldiers to neighboring 
Congo Republic to hum for artillery 
pieces that have shelled and killed ci- 
vilians in Kinshasa, capital of Congo. 

At a joint news conference wife 
President Pascal Lissouba of fee 
Congo Republic. Mr. Kabila said that 
“an observation unit" would set up a 
security corridor in Mr. Lissouba's 
capital, Brazzaville, as pan of the hunt 
for the guns. [Reuters) 

Ruler of Nigeria 
Assails His Critics 

ABUJA, Nigeria — Nigeria's mil- 
itary ruler lashed out at his country's 
critics Wednesday in an Indepen- 

dence Day speech, but failed to say' 
whether he would run in elections he 
has promised for next year.;.- 

Many Nigerians had hoped that 
General Sani Abacha, who seized, 
power in a coup in 1993, would use 
the speech to outline his plans for [be- 
coming year, when he has pledged to . 
hold elections and hand over power. to r 
a civilian government ait Ocl 1,^ 
1998. (AP)~ 

Israeli Extradition? 


JERUSALEM — In an about-face, 1 ‘ 
Israel said Wednesday that it would]] 
review its decision to try a teenage " 
suspect in a Maryland killing in Israel “ 
rather than extradite him tofee United . 

Sumuel Sheinbein, 17, of Wheaton, 1 
Maryland, fled to Israel last week and . j 
has been charged with a murder. Un- 1 
der Israeli law, Mr. Sheinbein is con- 
sidered an Israeli citizen because his “- 
father is. (AP ) ' 

ITALY: Communists Balk at Welfare Cuts 

Continued from Page 1 

“Germany in some sense might be 
relieved, but from our point of view, it is 
a disaster,” he said. 

Italian markets slumped at fee news of 
an imminent crisis, although they picked 
up somewhat by the end of fee day. But 
analysts predicted feat stocks and fee lira 
would tumble if the government col- 

In years post, government crises were 
frequent occurrences in Italy, and one of 
the reasons this country of 56 million 
people, a founding member of the Euro- 
pean Community and host of Che world's 
sixth largest economy, still has trouble 
being taken seriously by its northern 
neighbors. Germany's reluctance to in- 
clude the Italian lira in the new currency 
— a major political concern in fee Ger- 
man election campaign — is largely 
based on the view feat Italy is still not 
capable of fee kind of fiscal rigor and 
political continuity that a shared cur- 
rency would require. 

But the current Italian government, 
which has been in place since April 1 996 
has pursued a single-minded goal of 
bringing Italy’s public spending in line 
with fee criteria set for fee European 
common currency, due to be introduced 
in 1999. And by and large, it has been 
successful: Italy’s budget deficit, which 
was 9.7 percent in 1993, is now 3.8 
percent, within reach of the 3 percent 
limit set for those countries that want to 
join fee first launch of the euro, as the 
new currency is called. 

The budget, approved by fee gov- 
ernment over the weekend and now on 
its way to Parliament, was to be one of 
the last remaining pieces to Italy's ‘ ‘euro 
puzzle.” It would trim another $143 
billion from the deficit, wife $2.9 billion 

in cuts to Italy's pension andhealfe cafe 

It was these last cuts, which wert 
already cut in half during prebudget ne- 
gotiations, feat apparently have caused 
fee Refounded Communist Party, led by 
the feisty Fausto Bertinotti, to make its 
break wife the Prodi government. 

The Refounded Communist Party, a 
splinter party that broke off from fee 
larger, more moderate Party of fee 
Democratic Left upon fee breakup of 
Italy’s once-mighty Communist Parry in 
1991. The hard-liners are not part of the 
ruling coalition, but the votes of the 35 
Rcfounded Communist deputies in Par- 
liament's lower house are the key to the 
government’s parliamentary majority. 

The hard-line Communists have 
threatened repeatedly to puli the rug out 
from the Prodi government and in April i 
this year, they came close to toppling it ' 
with their vote against an Itilian-led 
United Nations’ mission to Albania. 
This time, again, few people believed 
warnings by Mr. Bertinotti, insisting that 
his hard-nose leftist constituency would 
never forgive him for bringing down a 
leftist government. 

"Nobody expected this crisis because 
nobody took Mr. Bertinotti seriously," 
said Mr. Caracciolo. Even Italy's major 
unions had urged support of the gov- 
ernment budget, after reluctantly agreeing 
to tackle reforms of Italy's old-age pen- 
sions — - the most generous in Europe. But 
several analysts agreed Wednesday that 
they had underestimated Mr. Bertmotti’s . 
willingness to take a high-risk gamble, ' 
and to reassert his political clout. 

“The last thread is hanging from the 
government or rather, the government is 
perhaps hanging from its last thread," 
said Mr. Bertinotti, after his party voted 
to oppose fee government's budget 


■■■ -r vr-i. Sit 

JAPAN: More Economic Gloom and Doom 

Continued from Page 1 

markets to U.S. products. The good 
news is that some of the weak numbers 
indicate that restructuring is, in fact, 
already under way, economists say. But 
while those changes may eventually cre- 
ate a more dynamic economy, for now, 
fee changes are triggering a “crisis of 
confidence,” said Russell Jones, chief 
economist for Lehman Brothers in 

For example, Fumishige Saito, a 49- 
year-old manager at an insurance com- 
pany who was interviewed on his way to 
lunch Wednesday, said that he was go- 
ing to wait another year to buy a car and 
feat he goes out to dinner half as much as 
he used to. “I just don’t think the econ- 
omy is doing well.” he said. 

Mamoru Suzuki. 58, a computer com- 
pany executive, said he was delaying 
work on his house, although he has not 
suffered a pay cut, while Takashi Hig- 
ure, 30, a government employee, said his 
concerns about the economy were caus- 
ing him too to put off buying a car. 

“I think the Japanese people are com- 
ing to terms in a very painful way wife 
the fact feat their economy is not what 
they thought it was," Mr. Jones said. 
“When I came here 10 years ago, the 
Japanese thought their system was in- 

That atmosphere has now been re- 
placed by fee opposite — an excessive 
level of pessimism that has caused con- 
sumers to cut back on spending far more 

than economists expected. Wife the lit- 
any of bad news, Japanese business ex- 
ecutives are pressuring the government 
for tax breaks and other changes to stim- 
ulate the economy. Top officials of Ja- 
pan’s largest business group, the 
Keidanren, met Wednesday with offi- 
cials of the Ministry of international 
Trade and Industry to say they were 
exasperated wife the continually upbeat 
assessment by the government. 

“I hardly hear that domestic demand 
is getting any better,” Hiroshi Saito, 
chairman of Nippon Steel Corp.. told 
MITI officials. “It is getting worse day 
by day in some industries, ’orae in- 
dustries are doing well, but . y are in 
part supported by a weak yc and ex- 

“The pressure is immense for fee 
government to come up wife a stim- 
ulative package," said Mineko Sasaki- 
Smith, chief economist at Credit Suisse 
First Boston ’s Tokyo office. 

In fee United States, some companies 
have been urging officials to talk the yen 

That would make Japanese exports w 
the United States more expensive and 
American goods here cheaper. 

“The danger is, if you do that, y 0 * 1 
kick away fee last support the Japanese 
economy has. and then you get a re- 
cession, which will result in e* 1 
bigger trade surplus.” Mr. ^ oncs s®*. 

“You also expose fee Japanese bant 
ing sector to more risk at a tune when tne 
Asian banking sector is a mess." 

« ts 




i i 

Russian Singers Crooning the Income Tax Blues 

^ Dmfcn Lfrreaky/Tbe Aarociattd Praa* 

. „ CLOSIN’ TIME — A Russian officer arresting a worker involved in 
l*R bottling smuggled liquor, a growing business, near SL Petersburg; 

3 Die as Algeria ‘Truce’ Starts 

g | The Associated Press 

■ ALGIERS — Oq the day an Islamic 
faction was scheduled to begin a cease- 
fire, at least three people were killed in a 
shooting blamed on Islamic militants, 
hospital sources said Wednesday. 
f< ■ Four people were vnc- '• '■* ; n the 

g shooting on the highway ..-^n the 

cities of Blida and Medea, about 60 
» kilometers (37 miles) south of die cap- 

\ ital, the sources said. 

, ‘j j- ! They also reported an incident Mon- 
\ *• r 1 day mght in which attackers slit the 
throats of sis people ami burned their 
bodies in lire village of Sidi Merzoug, 
about 3D0 kilometers southwest of Al- 

The latest killings came after a round 
of attacks since Saturday in which al- 
most 100 people have died. 

No other details were immediately 
available on the attacks, and no group 
immediately took responsibility. But 

By Daniel Williams 

Washington Post Service 

suspicion fell on Islamic militants 
whose five~and-a-half-year insurgency 
is estimated to have claimed at least 
75,000 lives. 

The Islamic Salvation Army, armed 
wing of die banned Is lami c Salvation 
Front, last week called a cease-fire for 
Wednesday, but there was no way to 
determine whether it had gone into ef- 

A more violent insurgent faction, die 
Armed Islamic Group, has vowed to con- 
tinue its attacks in an attempt to destabil- 
ize the military-backed government of 
General Liamine ZerouaL 

The Islamic Salvation Army is con- 
sidered a diminished force, with bases in 
eastern and western Algeria but no pres- 
ence in the Algiers region, where much 
of the violence takes place. 

The militants are seeking to over- 
throw die government and establish a 
state based on Koranic law. 

MOSCOW — You think the US. 
Internal Revenue Service has ways to 
humiliate suspected tax evadexs? Try 

A dozen Russian pop singers were 
invited by the State Tax Service to hear 
a lecture on why they should pay their 
taxes. Not only were the stars herded 
into the tax office, but a stern lecture 'and 
the singers’ whining responses were 
broadcast on national television. 

“People are not indifferent to bow 
their idols pay their taxes,'’ the tax 
director Alexander Pochinok said. 

Not surprisingly, the stars were not 
happy about their new role as civic 
exemplars. Virtually in chorus, they 
complained about being singled out — 
small wonder, since, depending on 
amounts and types of income, Russians 
are burdened by income tax rates as high 
as 95 percent 

“lithe state attacks us with its power, 
of course it will win. It will twist oar 
hands, take off our pants, etc!’’ lamen- 
ted one of the singers, Oleg Gazman- 

The tax rap, which took place Mon- 
day, was front page news in several 
Moscow newspapers, although in some 
articles the diamond-studded 
sunglasses of oae star got as much at- 
tention as the tax issue. 

In any event, the spectacle was a 
symbolic shot in the government's long 
— and thus far unsuccessful — battle to 
get Russians to declare their incomes 
and pay their taxes. Last summer, an 
effort to get government officials to 
declare their incomes fell flat when sev- 
eral reported remarkably low earnings 
and others simply failed to hand in their 

The inability of President Boris 
Yeltsin’s government to collect taxes is 
one reason it is chronically late in pay- 
ing government and military salaries. 
To make np shortfalls, it has had to 
borrow at high interest rates or sell state 
properties, frequently at discounted 

Last year, the Yeltsin government 
was able to collect only about 60 percent 
of the estimated tax revenue due, ac- 
cording to official statistics. In the first 
three mouths of this year, only 57 per- 
cent of projected tax revenues for the 
period were collected. Individuals are 
not die only sco f flaws. Big businesses, 
including some that are partly owned by 
the government, routinely misrepresent 
their incomes. 

Last week, Mr. Yeltsin declared in a 
speech that the era of laxity was at an 
end. He acknowledged, however, that 
the key to enforcing collection was 
missing: legislative passage of a new tax 
code to replace Russia’s confused and 

widely ignored compendium of tax 
laws. The draft code is currently lan- 
guishing in tire Duma, Russia's slow- 
moving, opposition-dominated legisla- 
ture. In a televised appearance Monday, 
Mr. Yeltsin warned that the delay 
“points to an obvious constitutional 

“Let the Duma think about what the 
president ought to do in such a case,” he 
said, pointing a finger at the camera. 
Tire proposed tax code would reduce tire 
top income tax rate to about 35 percent 
To make np for possible revenue short- 
falls, new sales taxes and a value-added 
tax also would be introduced. 

Mr. Yeltsin said that lower effective 
income tax rates would stimulate eco- 

nomic growth, but critics regard the 
code as regressive. The measure is 
“likely to mean a greater tax burden for 
the poor,” wrote Yulia Latyina, an ana- 
lyst affiliated wife the newspaper Izves- 

Poverty did not seem to be a problem 
for tire pop stars gathered at the tax 
office. Tney arrived in limousines and 
were stylishly dressed in the latest New 
Russian fashio ns — for women, bright 
red dresses and big hats: -for men, 
doable-breasted suits in pastel colors or . 
retro hippie garb. 

To hear them talk, it seemed that the 
more the singers performed, fee less 
money they made. Indeed, much in the 
style offee throaty ballads popular here, 

their after-meeting comments dripped 
wife pathos. 

Alla Pugacheva, Russia’s most pop- 
ular singer, acknowledged that even she 
found it laughable feat her husband, 
Filipp Kizkorov, also a rock star, had 
declared only $2,000 in earni n gs last 
year. Nonetheless, she said that the ex- 
penses of touring caused her to live in 
debt She suggested a tax holiday. 

* ‘Let us work in peace for tiro years, 
to earn money for retirement,” Ms. 
Pugacheva said. 

A crooner, Igor Nikolaev, said feat if 
taxes were set too high, the only per- 
formers left would be “children of 
bankers who will sing no-talent songs 
wife no-talent voices. *' 

U.S. Tax Agency to Soothe Public Ire 

Los Angeles Times Service 

WASHINGTON — In response to an 
outpouring of taxpayer wrath in Senate 
hearings last week, the Internal Revenue 
Service has a«nnnnc«H that it will open 
its doors nationwide Nov. 15 to any 
taxpayer wife a complaint 

All 33 district directors of the IRS 
have been ordered to meet in person 
wife fee public in an effort to relieve 
taxpayer frustration. 

Thp. g genc y p lans fn fi nntinn e ho lding 

such open-door complaint sessions once 
a month, said Treasury Secretary Robert 
Rubin, answering critics who have dis- 
paraged the IRS as an insulated bu- 

Arrangements for the coast-to-coast 
event — dubbed National IRS Problem- 
Solving Day — are still being made, but 

IRS officials insisted they would have 
more thap enough staff on hand and did 
not expect long lines. 

‘‘Taxpayers will be able to go to 33 
locations around fee country to discuss 
their problems face-to-face wife IRS 
personnel,” Mr. Rubin said. “We will 
then hold a similar day once each month, 
which will give taxpayers a chance in- 
dividually to resolve fee problems. ’’ 

In public healings, fee Senate Fi- 
nance Committee heard from four tax- 
payers who were hounded for up to 17 
years by IRS agents. 

Agency officials issued a public apo- 
■ logy and acknowledged that serious er- 
rors had occurred. 

As a result, the acting IRS commis- 
sioner, Michael Dolan, said Tuesday 
ttiqr fee agency has suspended four man- 

agers while it investigates the cases of 
abuse and mistreatment. 

The complaint sessions mark a sig- 
nificant departure from traditional IRS 
practices, m which the public seldom 
has personal contact with fee agency — 
unless it involves an asset seizure for 
delinquent taxes. 

IRS district directors have main- 
tained a low profile in fee communities 
where they serve, despite wielding enor- 
mous power. The complaint sessions are 
meant to bring them in closer contact 
wife the public so they can better un- 
derstand where fee tax system has gone 
astray, Mr. Dolan said. 

Nov. 15 was selected because it falls 
on Saturday, giving taxpayers the op- 
portunity to deal with their problems 
without missing work. 

U.S. Will Send 2 Boat Hijackers Back to Cuba 


WASHINGTON — The United 
States will re turn to Cuba two men who 
hijacked a Cuban patrol boat wife as- 
sault guns last week, fee State Depart- 
ment announced. 

“The two men admitted to the hi- 
jacking when interviewed by INS 
asylum officers,” the State Department 
spokesman, James Rubin, said Tuesday. 
“They were found not to be entitled to 
protection and will be returned to 

The U.S. decision to return the two 
men was criticized by the Cuban exile 
community in Miami, where such actions 
are considered heroic attempts to flee 
President Fidel Castro’s government 

Cuban exiles argued feat fee returned 
men would not get a fair trial in Cuba. 
But the U.S. government appeared in- 

teat on discouraging Cubans from leav- 
ingfee island by force. 

The men, a port security guard and his 
brother-in-law, commandeered fee boat 
on Sept 25, taking four people hostage. 

■ Talks on Terrorism 

The United States and Cuba have held 
their highest-level talks in six years, wife 

the U.S. ambassador to the United Na- 
tions, Bill Richardson, and fee island’s 
foreign minister, Roberto Robaina, meet- 
ing to discuss terrorism. The Associated 
Press reported from New York. 

Mr. . Richardson and Mr. Rnoarna 
talked Tuesday about “several tilings, 
including terrorism,*' a U.S. official 
said. He would not elaborate. 

Swiss Dmf Bank Gua* I 

Agave Frmce-Presse 

ZURICH — Swiss legal authorities 
said Wednesday that they had dropped 
lings against Christoph Mem. a 

bank guard who had been 
charged wife violating bank secrecy 
laws by rescuing Nan-era documents 

from destruction in a shredder. Mr. 
Meili, who is now living in the United 
States, had been dismissed from his job 
as a night watchman at the Union Bank 
of Switzerland for taking about 65 doc- 
uments that he saved from fee shredders 
to Jewish community leaders. 


- U 

4 /. f 

1 'ft* V •: 

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I - - 




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U.S. Interference 

The $2 billion Iranian gas-field de- 
velopment contract signed by the Total 
oil group of France, Gazprom of Russia 
and Petronas of Malaysia is doubly un- 
fortunate. It will provide new funds to a 
government that is exporting terrorism, 
developing nuclear weapons and dis- 
rupting peace efforts between Israel arid 
the Arab world. The contract could also 
trigger the first application of the Iran- 
Libya Sanctions Act, an ill-advised law 
that attempts to impose American pen- 
alties on foreign companies doing en- 
ergy business with Iran or Libya. 

The sanctions act, crafted primarily 
by Senator Alfonse D’ Amato of New 
York and signed by President Bill 
Clinton last year, is intended to force 
Europe 's policies on Iran into line with 
those of the United States. 

Instead it drives Europe and Amer- 
ica further apart Washington and Paris 
should be talking about how to change 
Iran's unacceptable policies. Instead 
they are now engaged in a noisy, un- 
productive dispute over Congress' at- 
tempts to legislate beyond American 

This trans-Atlantic quarrel comes at a 
time when there are signs that Iran may 
be reconsidering its policies following 
the recent election of Mohammed 
Khatami, a relative moderate, as pres- 
ident The West should now be sending 
coordinated signals that Tehran can se- 
cure increased international investment 
and an end to American sanctions if it 
abandons its dangerous behavior. 

Mr. Clinton must decide what pen- 
alties, if any, to apply against the of- 
fending foreign companies. At most. 

he could bar all three from any trade 
with the United States. He should in- 
stead emphasize diplomatic responses, 
including continued discussions with 
France, despite the rebuff Prime Min- 
ister Lionel Jospin gave Washington 
this week. 

The United States, in defense of its 
own national security, rightly bans 
American oil companies, like Conoco, 
from developing Iranian energy re- 
sources. But most European countries 
dispute American contentious about 
Iranian terrorism and nuclear weapons 
programs and insist that maintaining 
what they call a “critical dialogue'” 
with Tehran is the most effective way 
to influence Iranian policies. 

In the case of France, with its ex- 
tensive and long-established business 
dealings with Iran, this approach is a 
smoke screen for subordinating global 
security to commercial gain. France 
has also unhelpfully appointed itself 
the world's leading challenger of 
American diplomacy and economic 

Iran's weapons development pro- 
grams, support for terrorism and dis- 
ruptive diplomacy pose grave dangers 
not only to American interests but to 
the security and prosperity of Europe 
as well. Washington needs to keep the 
strongest possible pressure on France 
to restrain its commerce with Tehran. 
Yet the D’Amato law dilutes the case 
by shifting the argument from Iran’s 
dangerous conduct to America's le- 
gislative interference in its allies’ sov- 
ereign affairs. 


Lott’s Maneuver 

Trent Lott, the Senate majority lead- 
er, having magnanimously allowed 
campaign finance reform legislation to 
come to tie floor, now proposes to kill it 
with an amendment affecting the use of 
labor union dues for political purposes. 
He thinks he can summon the votes for 
die amendment, after which the theory 
is that the Democrats, who are the prin- 
cipal beneficiaries of labor support, will 
do the rest of his work for him by halting 
die underlying bilL The transparency 
offers him the best of both worlds: The 
bill will be defeated, but he won’t have 
been die one to have done it. 

The amendment would require un- 
ions to get the written permission of 
individual members before. spending 
any of their dues far political purposes. 
The Paycheck Protection Act, its spon- 
sors call it with mock solicitude. “Our 
political system depends upon one’s 
freedom to participate without even the 
slightest degree of compulsion,’’ the 
assistant majority leader, Don Nickles, 
says. But in fact under labor law such 
freedom already exists; there is no such 
compulsion. No worker in America 
can be forced to join a union. In some 
states, workers covered by union con- 
tracts who decline to join can be re- 

S uired to pay the equivalent of union 
ues, but they already have the right, 
under a 1988 Supreme Court decision, 
to have the political portion of those 
dues refunded. The reform bill would 

codify that decision; Lhe amendment 
would go beyond it, not necessarily 
incapacitating the unions but creating 
an extra hill for them to climb. 

Question One is whether Mr. Lott is 
right in thinking; he has die votes. Every- 
one understands what kind of vote tins 
is — a voce not on labor law but on 
campaign finance at one remove. A 
number of Republicans have indicated 
support for the reform legislation — 
perhaps enough, assuming all 45 Demo- 
crats also vote no, to set the Lon amend- 
ment aside. Do they vote with their 
leader or do they vote for reform? 

Question Two is what happens if 
Mr. Lott prevails. Once again it is a 
question of senatorial will. Proponents 
of reform said before the August recess 
that they were willing to tie up the 
Senate — prevent it from taking any or 
most other action — -until -they -got a 
clear shot at a clean version of the 
reform bill You presume they meant 
not just a chance to talk for a few days, 
take a test vote on a deflective amend- 
ment and quit, rather that they intend to 
press for a straight up-or-down ma- 
jority vote on the bill itself. Do they do 
it at the risk of violating the accom- 
modative code by which the Senate 
normally lives, or do they cave’ What 
finally matters most to their iat’s 
what the vote on Leader Lott's .end- 
ment will begin to telL 


The Gun Law Works 

You would think that by now die. 
lobbyists and handgun manufacturers 
associated with the National Rifle As- 
sociation would have stopped pretend- 
ing that the Brady Law doesn't help 
curb illegal gun traffic in the United 
Slates. Despite a Supreme Court ruling 
in June — that the federal government 
hasn 't the power to require local police 
to conduct background checks on 
handgun buyers — the law is working. 
Police still can, and do, use the five- 
day waiting period to check criminal 
records, and studies continue to show 
that the law works. The idea behind (he 
law, and why the measure enjoys over- 
whelming public support, is that it 
makes purchases of handguns by con- 
victed felons and other prohibits pur- 
chasers — those adjudicated mentally 
defective or subject to a restraining 
order — more difficult. 

Though solid statistics For the period 
since June 27 have yet to be compiled, 
those areas that have been running 
checks have stopped substantial num- 
bers of prohibited purchasers. A study 
issued last month by the Center to 
Prevent Handgun Violence cites 
Justice Department statistics estimat- 
ing that in the 50 states a total of 
173,000 transactions were stopped by 
background checks since February 
1994. This doesn't include those who. 

because of the background check, did 
nor even attempt to buy a gun. 

The study by the center found that, 
in addition, the Brady Act has had an 
impact on gun trafficking. And while 
many factors affect the use of hand- 
guns in violent crimes, the use of these 
weapons in crimes since the enactment 
of Brady happens to have been on the 
decline. Another possible contributor 
to the decline has been the enactment 
of laws limiting purchases to one hand- 
gun per person per month. 

Among all the commonsense rea- 
sons for the Brady law’s popularity is 
one finding of special interest to gun 
owners, collectors and yet-to-be pur- 
chasers; Nothing in the act prevents a 
law-abiding citizen from obtaining a 
firearm. Douglas Weil, director of re- 
search for the center and author of the 
report, notes that earlier research has 
shown that gun owners are “generally 
supportive" — including “those who 
identify themselves as members of the 
National Rifle Association.” 

The NRA leaders — those who spent 
heavily and lobbied intensely lo try to 
defeat the Brady bill — may never be 
able to embrace it by name. But they’re 
happy to take credit, of all things, fen; 
supporting the concept of background 
checks. The more supporters the better. 





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RICHARD McCLEAN. Publisher &. Chief Executive 
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America on Its High Horse Is 


P ARIS — The decision of French. 

Russian and Malaysian energy 
companies to develop an Iranian gas 
field will produce still another inter- unpaid di 
national row over sanctions and the 
current American disposition to legis- 
late for the world. 

The D'Amaio-Kennedy law, passed 
last year by Congress, requires U.S. 
sanctions against any company making 
a major investment in Iran. 

The French (and European Union), 

Russian and Malaysian governments 
will naturally defend their companies, 
creating what used to be called an in- 
ternational “incident'' but which has 
now become something closer to an 
ongoing legal border war between 
America ana the rest of the world. It is 
not a war Washington Is going to win. 

The international mood already is 
soar as a result of Washington’s refusal 
to join the international baa on land 
mines, its resistance to limits on carbon 
dioxide emissions and its unwilling- 
ness to pay its UN dues, even though 
obligated to do so by treaty. The last of 
these controversies follows from an- 
other effort by Congress to dictate in- 
ternational behavior by way of U.S. 

Secretary of State Madeleine Al- 
bright has asked for “pragmatism” 
from other members of the UN, arguing 
that “the UN cannot flourish if it 
does not enjoy the full confidence of 
the American people and their elected 

This translates as asking the United 
Nations to take whatever part of the 

By William Pfaff 

seen as American bullying. And Matay- 

5, of all the 

make up about 42 percent of the ments plcascvotOT^rcsistiojwhat is 
world's population.” * 

It does this for several reasons. First 
lues Congress is willing to offer, of all die Clinton administration lacks a 

coherent and positive foreign policy that 
could be defended against congressional 

accept the conditions Congress puts on 
the money and make the best of it 
Naturally this does not greatly impress 
governments accustomed to paying their 
UN bills. As Norway’s foreign minister, 
Bjorn Tore Godal, asked last week, how 
long can Norway expect its citizens “to 
continue financing free riders”? 

James Schlesinger has just published 
an excellent article on the general ques- 
tion of American unilateralism. It ap- 
pears in the fall number ofThe National 
Interest quarterly. Mr. Schlesinger — 
defense and energy secretary ( 1973-75 
and 1977-79, respectively), and before 
that director of Central Intelligence 
(1973) — writes that unrivaled post- 
Co Id War power, native self-righteous- 
ness and America's national taste for 
moralizing judgments on others have 
combined to make the United States the 
“nigh-on universal international nag,” 
even as Washington declines to follow 
the international rules and sometimes 
defies international law. 

The nagging goes much beyond the 
verbal and usually takes the form of 
economic sanctions against countries 
and foreign companies displeasing to 
Congress or to a particular adminis- 
tration. “During President Clinton's 
first term alone,” Mr. Schlesinger 
writes, “the United 

interference. Its policy is a compilation 
of reactions to factional economic and 
political pressures inside the country. 

It does what corporate interests and 
electoral combinations dictate. Iranian 
sanctions, as Mr. Schlesinger writes, 
result mainly from Senator Alfonse 
D’Araato’s interest in pleasing New 
York Jewish voters. 

The attraction of sanctions legisla- 
tion is that it seems a cost-free as well 
as a vote-getting way of responding to 
international problems without actu- 
ally doing anything. It is an affair of 
grandiose gesticulations. 

However it is not cost-free. It tends to 
penalize U.S. trade and economic re- 
lations more than it penalizes those who 
violate die international prohibitions 
proclaimed by Congress. Total, the 
French company that led the $2 billion 
deal with Iran, is, as the Wall Street 
Journal has noted, “virtually imper- 
vious to U.S. retaliation.” It has neg- 
ligible interests inside the United States 
and small exposure in the U.S. market 
All three of the governments con- 
cerned with the contract benefit from 
standing up' to U.S. pressures, both in 
domestic politics and in trade and export 

States imposed negotiations. Russia’s Gazprom profits 
tie sanctions, or from having a powerful Eli partner in 
ve loping Iranian energy exports. 
Both Russian and French govem- 

new unilater al economic 

threatened legislation to do so, 60 times developing Iranian energy exports, 
on 35 countries that, taken together. Both Russian and French j 

sia. of course, of all the new Asian 
industrial economics, is the ntosr vehe- 
ment in defying Western pressures. 

Senators D’Amato and - Edward 
Kennedy did all of them a favor with 
this legislation, which blocks Amer- 
ican oil companies from Iran — - with 
the fifth-largest oil reserves | n the 
world — and damages U.S. compet- 
itive prospect’s m the ex-Soviet regions ' 
dominated by Gazprom. 

The two senators were following a 
fashion that originated in (he executive - 
branch of government under earlier ad- 
ministrations. Calls for sanctions, iden- 
tification of “rogue states” ~and de- 
nunciation of sinners have become 
routine in American foreign relations. 

Yet sanctions against Iran have nev- 
er influenced Iran T s foreign policy in a 
direction America wonted, nor its 
policy with respect to terrorism, and 
they no doubt never will. It n naive to 
think otherwise. 

These American auemptsto legis- 
late the conduct of others devalue 
American authority and reputation. 
The gratuitous — and, worse, futile — _ 
antagonizing of other countries merely 
encourages them to oppose the United 
States. As Mr. Schlesinger notes, “the 
tolerance of our allies, and of others 
whom we would have follow us. is not 
inexhaustible. ’ * As the biblical proverb j\ 
has it; “Pride goeth before destruction, 
and a haughty spirit before a falL” _ 

Inter not ii uml Herald Tribune _ 

£> Los Angeles Tunes Syndicate 




In the Go-Go Global Economy, a Creeping Sense of 6 0h No 5 ? 

N EW YORK — An edge of 
anxiety has crept into the 
celebration of America's sup- 
posed triumphant economy. 
Maybe because it’s autumn. 
Manias and panics in the fi- 
nancial markets typically occur 
in October or November, for 
very h uman reasons. When the 
days are growing shorter, in- 
vestor optimism may shrivel 
with the leaves. 

Or perhaps the new uneas- 
iness stems from a creeping re- 
cognition that deeper disorders 
are stalking the global economy 
— deeper than the business 
cycle. A friend notices increas- 
ing references to the “O word” 
and the “D word” — over- 
capacity and deflation. Neither 
term is in the usual lexicon of 
economic observers. They hark 
back to earlier eras, when booms 
mysteriously- turned into busts. 

Early this year, an article in 
tiie Wall Street Journal an- 
nounced that the globalized 
economy bad entered a “new 
era” of stronger, trouble-free 
prosperity. In August, the news- 
paper revised die outlook. 

Actually, the Journal report- 
ed, many industrial sectors are 
hardened by dangerous levels of 
overcapacity, too much poten- 
tial output and not enough buy- 
ers. Hus glut, it said, promises 
ugly shakeouts ahead — failing 
companies, more closed facto- 
ries — if not something worse. 

For the same reason, a cover 
story in The Economist summed 
up the global auto industry this 
way: “Car firms head for a 
crash.’ ’ The industry will be able 
to produce nearly 80 million 
vehicles by the year 2000 for a 
market of fewer than 60 million 
buyers. The imbalances create 

By W illiam Greider 

downward pressure on prices 
and reduce return on sales. More 
factories must close, more large 
companies will meige or fail 

The Finan cial Times reported 
that, thanks to the deluge of in- 
vestment. even a hot market like 
China is now stuck with over- 
capacity, from cars to chemicals 
to electronics. A couple of years 
back, every multinational rushed 
to build plants there and catch 
tiie wave of China’s rising con- 
sumption. Now factories, not 
consumers, are overabundant. 

Some respected Wall Street 
observers are now expressing 
concern, as the glut of produc- 
tive capacity drives down prices 
and, eventually, profits. James 
Grant, editor of Grant's Interest 
Rate Observer, noted a general 
glut in areas as-di verse as semi- 
conductor plants and aircraft 
factories. “There are too many 
hotels in Phoenix and there is 
too much manufacturing capa- 
city in China,” he wrote. 

If a general deflation does 
occur, whether sudden or 
gradual, it will generate a neg- 
ative cycle of falling prices and 
wages, depressing output and 
financial values, from real es- 
tate loans to stocks and bonds. 

William Gross, the respected 
managing director of Pacific 
Mutual Investment Co., which 
manages more than $90 billion 
in bonds worldwide, now pegs 
the risk of a general deflation at 1 
in 5 over the next several years. 

“My deflationary fears are 
supported by two arguments — 
exceptional productivity growth 
and global glut,” Mr. Gross 
said. He cites twin causes: real 
wages, both in the United Stales 

and abroad, cannot keep up with 
the rapid growth of new pro- 
duction — that is, there won't be 
enough demand to buy all the 
excess goods. And emerging 
economies create aggressive 
new players eager to outproduce 
and underprice everyone else. 

Why did the euphoria sud- 
denly dim? The abrupt stall-out 
of Southeast Asia’s booming 
economies was a conscious- 
ness-raising event. It began as a 
financial crisis in Thailand, 
then swiftly spread to Malaysia, 
Indonesia, the Philippines. 

The visible disorder that gets 
official attention involves fi- 
nance — dramatic currency de- 
valuations, overexposed banks, 
the sudden flight of foreign in- 
vestors. But the underlying 
cause,-as-sorae acknowledge, is— 

Thailand is a classic illus- 
tration of how financial markets 
can get ahead of reality and 
destabilize the real economy of 
producers and consumers. 
Bankers and investors are so 
busy lending and investing and 
bidding up prices that they 
don't see that the new factories 
they’re financing may not be 
able to sell their output. 

The typical explanation for 
gross overcapacity is that mis- 
guided managers and their 
bankers got carried away. That 
truism does not explain much. 

Here's another explanation: 
The overcapacity problem is 
driven by globalization itself, as 
it interacts with technological in- 
novations. The fierce cost-price 
competition leads companies to 
take measures — cutting labor 
costs, modernizing production. 

trading jobs to gain access to hot 
markets — that both erode the 
worldwide consumption base 
and create excess output 

As established companies 
struggle with the imbalances, 
new competitors enter the mar- 
ket South Korea intends to be a 
major player in autos and semi- 
conductors. So eventually does 
China, then India. 

All this does not prove, of 
course, that things will fall 
apart In the 1 890s, when sim- 
ilar deflationary conditions en- 

Too many things 
and not enough 
people with die 
money to buy 
them: The 
^combination could 
mean some ugly 
shakeouts ahead. 

The Weightlessness of Space Policy 

derstand NASA’s de- 
cision to risk another astronaut 
in a long and purposeless ride 
on Russia’s ramshackle Mir 
space station, it's enlightening 
to comprehend the weightless- 
ness of American space policy. 

Permanently traumatized by 
the Challenger catastrophe, 
NASA has no stomach for Mir, 
a celestial hulk for which the 
controlling legal authority is 
Murphy's Law. But early in the 
Clinton administration. NASA 
was ordered to provide work for 
ex-Soviet space engineers, lest 
they find new careers in rogue 
countries. Mir, launched in 
1986, was one of the few intact 
remnants of the once-mighty 
Soviet space establishment. 

NASA chose to wring 
whatever value it could from its 
politically dictated assignment 
by integrating the Soviet craft 
into die centerpiece of the 
American space program — the 
space station. Conceived as an 
encore to the moon landings of 
1969-71, the space station is a 
marvel of engineering for 
which no sensible use has ever 
been identified. The often-cited 
potential is research under mi- 
cro-gravity conditions for de- 
veloping new materials for in- 
dustrial purposes. But corporate 
America, which is unsentiraen- 
tally shrewd about how to make 
money from research, has 
tellingly declined to come 
aboard with cash participation. 

That hasn't derailed foe pro- 
ject Without foe station. NASA 
would have no reason to main- 
tain an astronaut corps, nor 
would there be much use for foe 
exorbitantly expensive space 
shuttle, which is to haul con- 
struction materials into space for 
bnfiding foe station. NASA's fu- 

By Daniel S. Greenberg 

ture is lashed to the space sta- 
tion. Though they gagged on 
orders to take on the decaying 
Russian space program as a 
partner, our politically savvy 
space politicians recognized 
foal a foreign policy cornerstone 
for the station is no handicap. 

Skeptics jeered "about the cost 
of helping the impoverished 
Russians. But, employing its 
branded chimerical accoun- 
tancy . NASA announced that the 
linkup with Mir would save foe 
U.S. space program $2 billion, 
though, in fact, the United States 
has mid the Russians more than 
$400 million for American as- 
tronauts to ride on Mir, while the 
cost of foe space station has 
mushroomed, as is usually the 
case in these matters. 

But cost is not a serious prob- 
lem in space station politics. 
With contracts concentrated in 
California, Texas and Florida, 
and sprinkled around the coon- 
try, the station is home free in 
Congress. And with Vice Pres- 
ident A1 Gore shepherding the 
station for the administration, 
foe project is safe at foe other 
end of Pennsylvania Avenue, at 
least through the year 2000 
presidential election. 

The justification for risking 
U.S. astronauts on foe problem- 
plagued Mir is that they’re gain- 
ing valuable experience in cop- 
ing with foe problems of weight- 
lessness. But few in foe space 
business take that seriously, giv- 
en that foe Russians have ac- 
cumulated 1 1 years of Mir ex- 
perience in weightlessness, and 
foe United States has acquired a 
great deal on its own spacecraft. 
Prior to foe most recent U.S. 
launch to Mir, five American 

astronauts had accumulated 
many months on board the Rus- 
sian spaceship. At foe time 
NASA was agonizing over an- 
other trip to Mir, only two more 
American visits were planned. 

As usual, NASA maintains 
(hat important scientific exper- 
iments are conducted aboard 
Mir. But NASA ’s inspector gen- 
eral, Roberta Gross, recently re- 
ported foal the rickety Mir, with 
its frequent power failures, is not 
hospitable to scientific research. 
And Charles Harlan, a former 
senior official at the Johnson 
Space Center — NASA’s link to 
tiie Mir program — noted in a 
letter to NASA headquarters, “I 
would doubt that there is any 
mandatory Life Sciences re- 
search remaining on Mir in or- 
der to support foe development 
of the Space Station." Mr. Har- 
lan added. “I personally do not 
see any compelling NASA need 
for continuation of joint oper- 
ations with Mir, especially in 
light of foe perceived risk to 
human life involved.” 

Perhaps the most dismaying 
element in the NASA-Mir saga 
was revealed in Inspector Gen- 
eral Gross’s recent testimony at 
a House Science Committee, 
hearing. Noting the Johnson 
Space Center's “overriding 
goal to continue participation in 
foe U.S.-Russian partnership,” 
she reported that, despite con- 
cerns about Mir's safety among 
staff members at foe center, 
“some of those employees have . 
also said that they feel it would 
jeopardize their careers to be 
frank in their opinions, obser- 
vations and assessments of foe 
Mir program." 

dured for years amid industrial 
revolution, the economy con- 
tinued to expand, albeit with 
periodic banking crises and hor- 
rendous recessions. It was not 
until the late 1920s that supply- 
demand imbalances crashed the 
world economic system. 

Today’? deflationary pres- 
sures in foe industrial system will 
inevitably interact with foe fi- 
nancial system. When investors 
discover that foe boom in cor- 
porate profits cannot continue 
indefinitely, they will sell stocks 
and bid down prices, a disaster if 
they do so all at once. ■ 

Last winter, Alan Greenspan, 
chairman of foe Federal Re- 
serve, courageously tried, to 
tamp down foe market euphor- 
ia. His jawboning failed, but he 
has since backed away from his 
own stem operating principles 
for monetary policy. 

The economy, he used to 
preach, cannot be allowed to 
grow faster than 2 percent to 2J> 
percent without risking infla- 
tion. If unemployment rails be- 
low 5 or 6 percent, he warned, 
workers will win real wage in- 
creases in tight labor markets 
and thus generate inflationary 
pressures. Now he is permitting 
both to occur. For good reason: 
prices are still declining. 

Why are these flush condi- 
tions not producing inflation? 
Because with the global over- 
capacity, too many goods are 
chasing too little demand. 

If so, then foe reflation of 

wages becomes a necessary palj 
of any Fed strategy^ hack oth 
of the danger zone. Wages have 
finally begun rising again in rea} 
terms, but only modestly.. Tile 
so-called Clinton boom is diif 
tinctivc from earlier cycles 
cause, despite five years of ecoj- 
rtornic growth, family median 
income has still not recoven&J 
from the last recession. 

It's no secret how consumers 
cope: They borrow to keep buy- 
ing. Household debt hits 
reached an astonishing- 91 per- 
cent of disposable personal ii£ 
come, compared with 65 per- 
cent in 1980. according to the 
Financial Markets Center. No 
one knows at what point foe 
buyers will be tapped out Co%- 
sumer debt is being assumed cjn 
punishing terms. 

Will central banks have the 
wisdom to declare victory and 
back off now . foot inflation ft 
.approaching zero? In other 
words, the Federal Reserve 
should be cutting interest rati £ 

, now, not keeping them steady, 
as foe board did Tuesday, or 
raising them again, if it wish® 
to avoid foe dark possibilities of 
overcapacity and deflation. - n 
The politics of accomplish- 
ing this is treacherous. The cen- 
tral bank has to develop a mon- 
etary strategy that is m<#e 
generous to wage earners, buy- 
ers, borrowers and business en- 
terprises — and that will require 
reduced returns far financial 
assets. T 

Mr. Gross, the. California 
fund manager, believes finan- 
cial markets will accept foe end 
of the “super bull market" 
once they understand 
fundamentals. As he expl 
investors have enjoyed a 
annual bonus from disioflatidfl . 
for 15 years. As the Fed pushed ^ j 
down price levels, foe real value . v 
of their wealth steadily in- 
creased. • ^ .7.' 

That’s over. Instead of 15 "Sr '_-7. 
20 -percent real returns, Mr. 
Gross expects 6 percent retunfe 
ahead. I suspect many investors A 
will resist and pressure foe Fed - 
to keep interest rates high. V -7,7 
Nonetheless, the central bairn 
has to begin explaining tiling 
to its political constituents '-hi 
foe' bond market and banking. 

We are, indeed, in a “new era,” 
but not the one that Wall Street 
is celebrating. H 

I - 




The writer is author of “One 
World. Ready or Not: The Mdri- 
ic Logic of Global Capitalistic ? 
He contributed this commenTW 
The New York Times. rJ 

■ : 4 .- 



tuguese Cabinet met to disctlte 
a possible revolutionary o*\ 
break being prepared by Of- d 
fleers who are dissatisfied f; 

ing to the insufficiency of tte 
increase in their pay. 


1897: Typhoid Spreads 

LONDON — The outlook at 
Maidstone is a very gloomy one. 

There were 112 fresh typhoid 
cases notified, raising the total to 
1,152. New cases are being re- 
ported every hour. Eight of foe 
borough police force are now 
affected, and during foe past few 

days foe mortality has been ex- Army put Captain Roy AH$- 
cepnonally heavy among the . ander Farran^of focThird Kidgs 
young. The local authorities will 
have several temporary hospitals 
in use by to-day [Ocl 2]. Tnese, 
however, will not be enough, and 
it is probable some of the ele- - 
mentary schools will be conver- 
ted into sick wards next week. 

of ; 

1947: Jerusalem Tridl 
JERUSALEM — The Briritfc 

,f Ms 

The writer is editor of Sci- 
ence & Government Report, a 
Washington newsletter. 

1922: Alert in Lisbon 

MADRID — Reports that a rev- 
oludonary uprising is imminent 
continue to come from Lisbon. 
Orders have been issued to tiie 
military and naval forces to 
hold themselves in readiness foor 
any emergency. The Por- 


Own Hussars, on trial by„ 
court martial in a rifle-guardffl 
courtroom behind barbed w» 
in Jerusalem. Captain Farnwris 
charged with murder in foe dis- 
appearance last May of a six- 
teen-year-old Jewish boy, Al- 
exander Rubowitz. But 
[Oct. 1), with foe trial 
half over, it had not been 
that Captain Farran was 
volved or indeed foal a.* 3 ®*® 
had been committed- Rubowitz a ■ 
reputedly a junior, member^ 1 
tite Stern group tarorisr > 

ization, is supposed W have 

during questioning. 



.■ Pt fca ft 




Don’t Let Clintonians Set Testing Standards 

XYTASHINOTON — At the mo- 
* " went when Congress is grap- 

By William Safire 

pung wim toe education lobby s bid doing theirbest to march from school 
to centralize power with the national uniforms to scholastic uniformity. 
?-™ngof students, comes The New Perhaps that's why some 

tejtrogof students, comes The New Perhaps that’s why some with rights to protect the individual. 
Todc Times with a stunning series Cajon test-heaters wrote that “the Today, William Jefferson Clinton is 
that Shows how the world’s trading I -nmgiana F.n glish f jingnage AltS 00 Hatnilmn 's side of nations li 7 a- 
testing organization has for years Standards draft document is the tioo and elite establishment control. 

for cheaters. work of a team of primarily teachers Those groupdnnkers say: Never 

Bill Clinton has just shown him- from throughout the state," a sen- mind who writes the laws of a nation, 
seLfto be a true believer in snatching trace prompting The New Orleans or eveaitspojxilar songs; let us write 
from parents the local control of their Thnes-Picayvme “to wonder what a its tests. Everybody is for “higher 
cnnmra s education. He threatens to 'primarily teacher' does." standards" m education. The 

veto federal support of state edu- The debate today is not about question is: Who sets toe standards 
caboa unless “voluntary” testing — testing, a necessary trading tooL and writes toe tests? 
using standardized tests created by A well-constructed test reinforces The American tradition has been 
toe Great Cookie Cutter in Wash- what you've teamed and exposes to entrust such decisions to local 
m Sa° Q ~~ ts imposed on toe states, what you have failed to leam. And school boards, run by involved par- 
But toe danger of undue reliance a snap quiz is a real waker-upper. aits and teachers in that community, 

such as adoption of a brainwashed 
history curriculum that some multi- 
doing theirbest to march from school concentrating power to forge a na- kulturkampfers wanted to inflict, 
uniforms to scholastic uniformity. non; Thomas Jefferson countered Maybe f ‘fnzzy math" is a terrific 
Perhaps that's why some with rights to protect the individnaL idea, and a future generation will 
Cajun test-beaters wrote that “toe Today, William Jefferson Clinton is rely on calculators to balance its 
Louisiana English Language Arts on Hanuhon’s side of nationaliza- checkbooks. But before we abandon 
Standards draft document is toe tioo and elite establish meat control, arithmetic, let's see how total 
work of a team of primarily teachers Those grouptomkera say: Never reliance on an electronic crutch 

from throughout toe state," a sen- mind who writes the laws of a nation, adds up in some locality — and if 

Rotten Cow Head With Maggots: 
Is It Art or Is It Just Disgusting? 

By Baal Mullin 

S EATTLE — Yes, it’s shocking, disturb- 
ing, even infuriating, but is it ait? 

series by Dou 
Nordheimer (Ii 

•ut in the Times SoTm not knocking tests. Rather, win 
Frantz and Jon Fm resisting standards — and 

or even Us popular songs; let us write its users can compete later, 
its tests. Everybody is for “higher We’re only talking about math 
standards" m education. The and English, say the national 
question is: Who sets toe standards standard-bearers, and shucks, it's 
and writes toe tests? only voluntary. Don't believe that; 

The American tradition has been if the nose of that camel gets under 
to entrust such decisions to local toe tent, toe hump of a national 
school boards, run by involved par- curriculum, slavish teaching to 
rats and teachers in that community, homogenizing tests, and a black mar- 
with review by state authorities, ket in answers would surely follow. 

made a mockery of exams produced celebrate diversity and individuality, experiments in early child develop- 
by the Educational Testing Service, This reflects a classic disagree- meat to be emulate! elsewhere if 
the reports dashed a bucketful of meat between America's founders, and when they work. It prevents 
reality into the faces of toe crusaders Alexander Hamilton believed in horrendous mistakes nationwide. 

and with the feds intervening Despite the last-ditch efforts of 
only when states fail to protect a the Clinton- Hamiltonians , the mov- 
smdrat’s constitutional rights. mg force in America today is cen tri- 

Thai is a great tradition. It pennies fugal. (That means “away from the 
experiments in early child develop- center." Its meaning was indelibly 

meat to be emulated elsewhere if impressed on my mind because I 
and when they work. It prevents got it wrong on a physics test.) 

The New York Times. 

flair’s Plans 

■ Eu ropean Union membership 
jyy toe end of toe new par- 
liamentary term in 2001. 
'..The great paradox of 
.Pplisb politics is the fact that 
jhe Solidarity Election Action 
^aiition and toe Freedom 
>Union will be forced to 
y on rin ue the previous govem- 
- njent's economic program 
jthat, despite their active op- 
position, was implemented so 


“Just What Are 
Britain's Puxns for EMU?" 
jfOcr. I): 

,r ■ While the tenor of the 
’Labour government’s Euro- 
pean policy is more favorable 
than that of its Conservative 
predecessor, Prime Minister 
Tony Blair is under no illu- 
sionson the issoe of European 
monetary union. He knows 
his backbenches are as riven 
as toe Conservative ranks. 

Nevertheless, it would be 
timely for Mr. Blair to 
demonstrate some of his for- 
midable nerve by announcing 
a statement of intent for 
participation in toe single 
currency as soon as posable. 

Attempts to test the 
markets with toe unofficial 
A spin of media consultants are 
w* disrespectful to Parliament, 
discourteous to our European 
colleagues and risk invoking 
toe wrath of the City. 



The writer is a member of 
the Economic and Monetary 
Affairs Committee cf the 
European Parliament. 

hr . . 

On Jerusalem 

,,. “Wby is there outrage 
.when three families move 
into a legally purchased 
home in Jerusalem?" asked 
JR.onn D. Torossian (Letters, 
$ept. 30). Answered simply, 
because it is not a problem 
of property rights but of 
optional rights. 

... The families moved into 
the RasalAmud area in order 
tp gain an Israeli foothold in a 
Palestinian neighborhood and 
. to develop an even larger 
A Jewish enclave there, 
vf No consideration of prop- 
erty rights can override the 
contentious issue of national 
.rights. That is why the Oslo 
'negotiators, in their wisdom, 
stipulated that the problem of 
Jerusalem be left to the end of 
•toe peace process. With toe 
status quo maintained, mutual 
confidence would increase. 

• _ The Ros al Amud affair 
.destroys such confidence and 
decreases the chances of Jews 
and Arabs being able to live 
together in peace. The Israelis 
who moved in, armed to toe 
J .teeth, belong to groups that 

V £re consistently and actively 
opposed to the peace process. 
.Their expressions of desire 
for “peaceful coexistence" 
■are plainly hypocrisy. 


Hope for Poland 

Despite deep concern, toe 
outcome of recent parliamen- 
tary elections in Poland is not 
going to affect the economy 
in a negative way. 

Having been responsible 
for Polish economic policy 
*$5 deputy prira minister and 
finance minister from 1994 
To 1997, 1 am confident that 
.the main course of reform 
will be continued Although it 
<. will be extremely difficult 

V -bo repeat the remarkable 
achievements of the outgoing 
government, the new coali- 
tion ma y be able to push 
develo pme nt still further. 

■ - Structural and institutional 
Reforms will contribute to the 
sustainability of Poland's 
high rate of growth and bring 
r fa* rraintrv to the doorstep of 

Missing Air Bags 

The automotive safety re- 
search community is saddened 
by die untimely death ‘of Di- 
ana, Princess ofWales. and toe 
others in her vehicle. 

Celebrities traditionally 
do not wear seat belts in the 
rear seat of cars. In spite of the 
violence of the impact, if 

Solidarity Election Ac- 
tion's own economic pro- 
gram would be a real threat 
for the transition to a market 
economy due to its populism, 
xenophobia and financial 
laxity. The Freedom Union’s 
program would cause social 
unrest and des tabilization 
owing to its radicalism 
and liberalism. Both plans 
would slow growth and 
erode competitiveness. 

But a compromise between 
the two can work. Gradual 
structural reforms, a new in- 
stitutional setup, social aware- 
ness and an active role of toe 
stale — these should be the 
main features of their policy. 
It should be open to both for- 
eign participation and to do- 
mestic entrepreneurs. 

Such a marriage has served 
the Polish purpose so well 
in toe past Let it be similar 
in the future. 



The writer works wish the 
World Institute for Develop- 
ment Economics Research in 
Helsinki and is an adviser 
to President Aleksander 
Kwasniewski of Poland. 

• Subscribe and SAVE 
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•Monday thrash Frid^r outside Central London, fatal suhstHp- 
tkxgarearea^thra^ioutthcUKonthedy a fo fcr putoltearion- 

Diana and Dodi al Fayed had 
been wearing the available 
restraints or had bees riding 
in a vehicle equipped with 
rear-seat air bags, they might 
have survived. 

In toe United States, a de- 
fective vehicle is one that toe 
manufacturer knows is un- 
reasonably. dangerous for its 
intended use. In this case. 

toe Mercedes limousine, 
whose rear seat passengers are 
a principal safety concern, 
provides only seat belts, which 
customarily are not used. 


Santa Barbara, California. 

The writer heads a 
company specializing in 
automotive safety research. 

O ing, even infuriating, but is it art? 

A new exhibition has re-ignited toe in- 
famous fight over the line between art and its 
commoner cousin, sensationalism 

But haven't we heard it all before? 

As a matte of feet, tiie debate has raged on 
and off for at least 2*500 years. And as a 


general rale, toe artistic health of any moment 
in history can be gauged by how vigorously 
and sincerely toe battle was fougfat. 

Tbe Royal Academy of Arts opened a show 
in London on SepL 1 S titled, candidly enough. 
“Sensation.” It includes a huge portrait of a 
convicted child killer made from toe titty hand 
prints of children, and a glass box containing a 
rotting cow’s head complete with live flies 
and maggots. 

Indeed, toe only overarching theme binding 
the works seems to be their shock value. But 
the curator, Simonetta Fraquelli, defended toe 
show. “To say that this is not art is to limit 
where art begins and ends," she saidL 

In the United States, toe conservative con- 
gressmen now going after the National En- 
dowment for the Arts would no doubt be happy 

to draw a bold, black line fix' MS. Fraquelli, 
rtftHti mating toe be ginning and the end OI ait. 

The Christian Action Network, mean- 
while, has unveiled an Internet site featuring 
examples of what it calls “the most 
controversial artworks funded by the 
NBA" Even the titles of some of those 
works are unprintable here. 

As a sort or asterisk to toe whole debate. Tag 
Heuer, toe Swiss watch manufacturer, has re- 
cruited athletes such as Boris Becker, the swim- 
mer Amy Van Dyfcen and the decathlete Dan 
O'Brien to pose nude for toe photographer 
Herb Rids in a promotion forics new tine. 

The photographs have been displayed 
at a New York gallery and are now on a 
national tour. Is it art? Or simply another 
cynical salvo of advertising? 

It’S temp tin g to think that there mus t have 

been a simpler time when these weighty ques- 
tions did not need to be asked. But if such a time 
existed, it mast have been long before Phidias, 
toe greatest of the ancient Greek sculptors. 

In 432 B.C., Phidias was arrested and con- 
victed of sacrilege and "misappropriation of 
public funds" (sound familiar?) after he 
carved an image of himself and his sponsor, 
Pericles, onto toe goddess Athena's shield in 
toe Parthenon. Some accounts say that Phidias 
was exiled, others that he died in prison. 

The United States has been in toe fray right 
along. In 1847, for instance, a group of Cin- 
cinnati clergymen piously debated whether the 
sculpture “The Greek Slave." depicting a na- 
ked woman, could be exhibited- Tne work was 
finally deemed acceptable because, as the cler- 
gymen put it, “her hands were chained and her 
undraped condition was beyond her controL" 

The furor has boen with us, oa and off, since 
1987, when the photographer Andres Serrano 
placed a crucifix in a container of his own 
urine and took a picture of it. But even his 
scurrilous tactic was borrowed from toe past. 

In 1917, for instance. Marcel Duchamp, the 
Big Daddy of Dada, signed and dated a urinal, 
fined it “Fountain" and put it on display at the 
Society of Independent Artists in New York. 
Showing more creativity titan most of today's 
opponents of toe National Endowment for the 
Arts, a group of critics dismissed toe piece as 
plagiarism, because toe artist had not created 
toe porcelain sculpture himself. 

Duchamp fired back in a letter, quiririly 
Hrfewting himself in toe thir d person: 
“Whether [the artist] with his own 
hantic made the fountain or not has no 
importance. He CHOSE it He took an 
ordinary article of life ... [and] created a 
new thought for that object" 

Duchamp earnestly aimed to knock art off 
its bourgeois pedestal, a noble goal fix* any 
age. But even understood in its historical 
context, a urinal displayed as arris a one-shot 
wonder, hardly a masterpiece. 

And as much as a crucifix submerged in 
urine or a cow’s head crawling with maggots 
may succeed in shocking us into an aesthetic 
impasse, such things still fell far short of 
offering any deep insigh ts. 

At brat these works are ‘ ‘maintenance art,’ ’ 
shattering our preconceptions and ‘widening 
our perspective so that when a great work of 
ait comes along, we’re ready. 

The “what is art" debate has probably 
always been dominated by toe extremists at 

1 To say that this is not art is 
to limit where art begins 
and ends a curator argues. 

either end: those who say, “Art is whatever 
anyone says it is" and those who say, “Ait 
is whatever I say it is." 

Obviously, both roads run just as surely 
to art’s graveyard. 

Since toe best art thrives in the crucible 
of the question, we should celebrate the 
debate rather than seek to resolve it. Art is 
humanity’s highest form of communication: 
a constantly renegotiated agreement between 
two or more people to expand each other's 
perception and understanding. 

The person willing to state unequivocally 
toe meaning of art is a blowhard. The person 
willing to share unabashedly the meaning 
of art is ... an artist. 

The author, a playwright, is currently writ- 
ing “Treasures of the World," a documentary 
series for UE. public television about the 
worlds great artworks. He contributed this 
comment to The New York Times. 

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PAGE 10 



The Wizard 
Of Knitwear 

City Takes Center Stage 

By Suzy Menkes 

truenuaionaJ Herald Tribune 

L ONDON — With a whoop of joy, designer Julieo 
MacDonald ran down the runway, embracing the 
supermodels wearing his saucy webs of knitwear. 
His inventive, imaginative show was a fitting end to 
a lively London fashion week that has brought the swinging 
city to center stage. 

With a sprinkling of big players and myriad quirky in- 
novators, London seems finally to be making it into the 
international arena. 

"I loved that — it summed up the whole season — fun, 
wearable, colorful and full of energy,'’ said Nicole Fischelis 
of Saks Fifth Avenue after MacDonald's show. “It’s where 
British fashion should be." 

To some extent, it is the cocky confidence of the British 
designers, reflecting the effervescent spirit of the city, that has 
made the spring-summer season seem exceptional. 

But MacDonald's show was impressive by any standards. 
This Welsh wizard of the knitting machine sent out brief playful 
dresses, fringed, fluffy or paillette-edged hemlines just grazing 
the rear and the bodice dangling from decorative straps. 

In such a tiny area, MacDonald packed in his ideas: knitting 
that was alternately lacy, sheer, stretchy, lattice worked and 
glimmering silver, or glowing with color and geometric 
pattern. The inventiveness burst out in clusters of ragged ends, 
artistically worked, or in a tramway of knitted flowers. 

Surely these bikini pants, kimono jackets and that mad stole 
looking like sequined feathers couldn't possibly all be knit- 

“One hundred percent knit!" said a jubilant MacDonald 
backstage, praising the skill of the Italian knitwear factories. 
They too should be grateful to have found a designer who is 
reinventing knitwear in a youthful, wearable way for a new. 

The conundrum for British designers is how to harness their 
creativity to a commercial bandwagon — rather than just 
being known as inventive eccentrics. But it was dispiriting to 
see Vivienne Westwood's secondary line tamed to a mish- 
mash parade of girly outfits. The setting was appealing: the 
newly restored Globe Theatre, with a "Midsummer Night's 
Dream" set and an Elizabethan quartet But for what? Pert or 
prissy junior-miss outfits (read mini-skirted sailor suits and 
milkmaid dresses) shown with familiar vertiginous platform 
soles. Inevitably the models stumbled. So had the designer. 

UT then what was Richard Tyler’s show about? 
Why would the American-based designer known 
for finely crafted clothes and delicate tailoring cross 
the pond to show so-called hip sportswear in 
hideous colors, with stretch pedal pushers making even ac- 
ceptable outfits seem weird? It must have been a misreading of 
the current London scene, where street looks are right off the 
runways and the focus is on cutting and craftsmanship — 
which is just what Tyler really stands for. 

How difficult it was to assess Antonio Berardi's collection. 
Here was a superbly crafted show, exquisite in its detail and 
presented with great panache — but with an aesthetic that is so 
close to John Galliano’s that Berardi looked like a couture 

You couldn't argue with the quality or the breathtaking 
workmanship: the trellis of ribbons worked into a flirty dress 
(which is Berardi's thing). The dresses came also edged with 
minuscule pleats, with openwork fagoting, or with a whorl of 
flowers at me ban. Knits were dainiy.delicate, lacy and sexy. 
The opening dress of feathery white iace knit, fringed at the 




Scenes From Provincial Life 

ByJM. Coetzee 166 pages. $22.95. 

Reviewed by Mark Mathabane 

J .M. COETZEE’S novels are some- 
times criticized by uninitiated read- 
ers as obscure, surprisingly devoid — 
for such a gifted writer from as wrench - 
ingly political a country as South Africa 
— of a political stance, filled with al- 
lusions and symbols that sometimes re- 
quire a Talmud of commentary to il- 
lumine. His nonfiction has tended to 
compound this criticism because of its 
heavy scholarly emphasis. And com- 
parison to Nadine Gordimer, whose 
works boldly delineate life under 
apartheid, hasn't helped. 

"Boyhood" is a charmingly accessible 
book. It is the memoir of a sensitive soul, 
absorbing the elemental impulses of life 
for later use in such complex master- 
pieces os "Waiting for the Barbarians" 
and ' ‘The Life and Times of Michael K.” 
Coetzee writes about his childhood in a 
way suggestive of an attempt to follow 
Keats's dictum of ' ' negative capability,* ' 
which maintains that for poets (artists) to 
understand their subjects fully, they must 
free themselves from their own biases, 
emotions and limited points of view, and 
merge with that which they are describing 
and attempting to understand. 

At first it strikes one as rather odd for 
a memoir to be written in the third per- 
son, as Coetzee's is. But this has the 
effect of broadening his emotional and 

imaginative range within the constraints 
of a memoir. As Keats put it, imagin- 
ation and feeling are better agents of 
truth than reason and logic. 

“Boyhood” is in many ways a 
Biidungsroman. It revolves around Co- 
etzee's awakening to the "mighty world 
of eye and ear" around him, and to the 
interior world of feelings and ideas. This 
awakening occurs principally in the cit- 
ies of Worcester and Cape Town, which 
are situated in the Western Cape, a lovely 
region full of with pastoral scenery. 

Coetzee's childhood in these two 
towns is filled with complicated rela- 
tionships — with his mother, father, rela- 
tives, neighbors, schoolmates. The one 
with his mother is the most complex and 
formative. She’s a lover of Shakespeare 
and Ingrid Bergman, and is fond of re- 
galing the young Coetzee with stories of 
her own childhood on a farm — stories in 
which he takes refuge, and which expose, 
among other things, the anti-Semitism in 
South Africa at the time. The writer is so 
aware of the opprobrium heaped on Jews 
that when called a “Jood" by bullying 
schoolmates he denies it and says he's a 
Roman Catholic. 

“Boyhood" is replete with stories 
about life in the Western Cape following 
World War 0, during which South Africa 
fought on die side of the Allies, even 
though some Afrikaner leaders were 
sympathetic to the Nazis. The writer ex- 
periences the kind of life typical of white 
children at the time: going to the bio- 
scope (as movies were called), discov- 
ering the joys of the veld, playing cricket 
and rugby, discovering the world of 

books, learning (awkwardly) about sex in 
a puritan society, realizing die unsettling 
presence of apartheid, learning to silently 
rebel against it and, finally, dealing with 
the illness and death of loved ones. 

What is often considered a weakness 
in Coetzee’s work — he is the most 
apolitical of great South African writers, 
especially when compared to his con- 
temporary Gordimer — is also a source 
of ms greatest strength. And it is abund- 
antly displayed in "Boyhood.” Rela- 
tionships are dispassionately explored in 
all their ambiguities, and emotions and 
events are analyzed with such vividness 
and artistic power that a different and, 
ironically, a more South African Co- 
etzee emerges. 

Even though Coetzee grew up on the 
sunny side of life, as black South Af- 
ricans would say, he is one of us. His 
heart and sensibilities and empathies 
are African — because they are so in- 
tensely human. The boyhood Coetzee 
describes, privileged though it is, is as 
real as the boyhood of a black growing 
up in one of South Africa's hellish 
ghettos. Together they make a powerful 
statement about what Zulus call Ubuntu 
— the quality of being human. This 
quality, when found in both blacks and 
whites, compels each to give the other 
the benefit of the doubt, and enables a 
nation steeped in racism and oppression 
to achieve the miracle of disenthralling 
itself from such a bitter past. 

Mark Mathabane, the author of " Kaf- 
fir Boy" and other books, wrote this for 
The Washington Post. 

By Alan Truscott 

E VERY tournament player 
knew the Man in the Bow 
Tie. He was Maurie Braun- 
stein. who died last Saturday 
at his home in Schenectady, 
N.Y., at 83, and he was one of 
the world's great tournament 
directors. When he retired re- 
cently after 43 years of ser- 
vice at regional, national and 
world championships, his 
friends gathered for a party. 
Everyone wore a bow tie, and 
that included the women and 
the dogs. 

His colleagues knew him as 
a master of movements, acon- 
tributor to the theory of tour- 
nament organization. The 
bridge public knew him as a 
man who was efficient, 
charming and winy. One stray 
in tournament lore concerns a 
deal that was something like 
the one in the diagram. 

Sitting North and South 
were Father Tobin and Father 

Moynihan, Two Roman Cath- 
olic priests who regularly 
played together and had a 
reputation for leisurely perfor- 
mance. They regularly exceed 
the allotted time, and on this 
deal they went overboard. 

First North thought about 
his response to one heart. 
Should he bid two no-trump 
to describe a balanced hand? 
He chose twoclubs, intending 
to support hearts later. After 
much consideration his part- 
ner jumped to three no-tramp, 
which was ambiguous. Did it 
show a hand slightly too 
strong for an opening one no- 

After much thought North 
bid four no-trump, introdu- 
cing further ambiguity. Was 
this Blackwood? Most mod- 
em players would treat it as a 
natural invitation, but this 
was not so clear when the deal 
was played 30 years ago. 

Three minutes later South 
bid six no-trump, and that 
would have been right. Bat 

North was aware that he had 
not supported hearts, and his 
partner had been jumping 
around like a kangaroo. 
While he was pondering. 
Braunsiein arrived to take a 
look. This table was holding 
up a roomful of players. 

Conscious of the eagle eye 
of authority, he blurted out a 
seven-heart bid after a mere 
two minutes of contempla- 
tion. The bidding ended, and 
Braunsiein departed. 

South began thinking when 
a spade was led, the dummy 
appeared and the spade jack 
won the first trick. How was 
he going to find the heart 
queen? The percentage play, 
by a small margin, was to play 
the king and follow with a 
jack for a finesse. Against 
that. West had made a risky 
lead away from the queen, 
suggesting reluctance to lead 
a trump. There was a five- 
minute pause. 

Nobody remembers 
whether Father Moynihan 

made seven hearts. What is 
remembered is that at this 
point Father Bran ostein ar- 
rived and intoned; “Our Fa- 
thers. which art in seven, hur- 
ried be thy game.” 

+ K85 
♦ KI093 


A Half-Cure for the Cold 

By Thomas H. Maugh II 

Las Angela Times Senior 

L OS ANGELES — Researchers 
for the first time have reduced 
the severity of the common 
cold using a nasal spray to 
block the entry of cold viruses mto the 
body, a finding that could change the 
way colds are commonly treated. 

Eventually, should the drug be ap- 
proved, a person confronted by a sick 
child, an infected roommate or a sneez- 
ing lover could simply squeeze the nasal 
spray into his or her nose. It wouldn't 
stop that person from catching a cold, 
but it would cut symptoms by half with- 
out the annoying side effects of anti- 
histamines and other cold remedies, re- 
searchers told a meeting of the American 
Society of Microbiology in Toronto. 

The nasal spray has been tested in 
only 177 people so far, however, and it 
will be several years before it will be 
available. Dr. Ronald B. Turner of the 
Medical University of South Carolina, 
said. “1 don't know if I am willing to say 
that we have a cure for the common 
cold,” be said at the meeting, "but this 
technology looks promising. It reduces 
symptoms dramatically." 

If the drug works as well as he pre- 
dicts, it could have a major impact on 

society. People contract about 100 colds 
during their lifetimes. Young children 
can catch as many as 12 per year. 

According to the National Health Sur- 
vey, colds cause 79.5 of every 100 U.S. 
males and 94.5 of every 100 females to 
miss at least two days of work or school 
each year. 

Vaccines don't work for colds be- 
cause the sneezing, sniffling disorder is 
caused by as many as 200 different vir- 
uses. Blocking all. or even most, of them 
with one vaccine is simply impossible. 

But in the mid-1980s, researches dis- 
covered that as many as half of those 
viruses enter the body by binding to a 
sin gl e receptor in the nose. In 198v, two 
different groups, one sponsored by 
Boehringer Ingleheim Pharmaceuticals 
and one by Bayer Corp- reported that they 
had identified and cloned that receptor, a 
protein molecule called ICAM-l. 

The race was on to develop a drug that 
would bind to ICAM-l and prevent the 
virus f rom attaching to ir and entering the 
body. The first heat of that race was 
apparently won by Boehringer, which de- 
veloped the compound Dr. Turner stud- 
ied. Dr. Turner and Dr. Michael Scheid of 
the University of Virginia tested the new 
compound, railed BIRR 4, in 177 people. 
Some of the subjects were given the (frug 
seven hours before they were exposed to a 

cold virus, part were given « 

12 houra after the exposure, and 
the rest received a placebo. 

Those receiving the drag either 
before or after exposure had about 5(L 
percent fewer symptoms — - such ft 
stuffiness, headache, cough, nmny noses 
and sore throats — than those receiving 
dummy sprays. By comparison, over- 
the-counter cold remedies reduce symfh 
toms by about a third, and they do so by 
reducing the body’s own iitunune re; 
sponse to the virus rather than blocking 
its entry. 

ND while antihistamines iq 
such remedies can make the 
user sleepy or cause other sidg 
effects; Dr. Turner said that 
BIRR 4 produced few such-effects. ( ' 

Dr. Scheid cautioned, however, that i( 
is too early to tell if the treatment will be 
cost-effective. The company must alsp |l| 
test the drug for long-term safety as well 
as effectiveness. 

Dr. Scheid noted that if the drug 
works it would probably be roost useful 
in the fall and late spring, when colds 
caused by rhinovixuses — the group that 
targets ICAM- 1 — arc most common; 
Colds in winter are more likely to he 
caused by other types of viruses that use 
a different receptor. 

l/ !r " 

/*/«' • 


Stem Report on Diet and Cancer ; 

By Marian Burros 

New York Times Service 


Julien MacDonalds openwork glitter-knit dress. 

hem, worn by Naomi Campbell making a star appearance, 
summed up the sexy romanticism of the show. 

But that particular combination of raunch and romance is 
Galliano territory. And Berardi has to accept that he appears to 
be following in another's high-heeled footsteps — unless he 
can turn his talent to a different track. 

The venues of the London shows have opened up hip 
downtown areas to the fashion crowd, with MacDonald 
showing at Spitalfields Market in the revitalized Dickensian 
East End. Berardi chose a club in Brixton, London’s Harlem, 
where Bella Freud also presented perky suits and dresses in an 
ill-advised parade of “homeboy chic.” 

The internationalization of London fashion week was 
proven by shows from Tyler and the American sportswear 
company Nautica, and by Ghost, a British company, which 
returned from showing in New York to present its flimsy 
dresses with whimsical decoration. 

According to John Hoemer, the chairman of London Fash- 
ion Week, the volume of buyers and business have proved the 
event “a pretty big success." American buyers were en- 

"In a way, London's shocking days are over — now the 
quality is there — I think England has grown up and become 
more mature," said Bonnie Pressman of Barneys. 

‘ ‘Those who are good have come to fruition — and this time 
in London, it has ail come together,” said Joan Kaner of 
Neiman Marcus, who, like the other fashion professionals, is 
now off to the shows in Milan. 

EW YORK — Just as a back- 
lash against the nutritionists' 
strict limits on the levels of 
meat and alcohol in the diet 
seems to be gathering steam, cancer re- 
searchers are calling for even less meat 
and no alcohol at all. 

On the basis of an extensive analysis 
of the scientific literature on the world- 
wide causes of cancer, the American 
Institute for Cancer Research, a non- 
profit educational organization that as- 
sembled a panel of international re- 
searchers, has issued a report forcefully 
reiterating that what we eat has an im- 
pact on cancer risks. The recommen- 
dations have been designed for those in 
both rich and poor countries. 

Taking its lead from the Environ- 
mental Protection Agency's character- 
ization of the cancer risk from chem- 
icals, the report divides the evidence of 
the link between foods and cancer into 

four categories: convincing, probable, 
possible and insufficient. For example, 
the report says there is probable ev- 
idence that meat increases the risk of 
colorectal cancer but that there is only 
possible evidence of its link to breast and 
prostate cancer. 

The recommendations do not mince 
words: "If eaten at all, limit intake of red 
meat to less than 3 ounces daily. It is 
preferable to choose fish, poultry and 
meat from nondomesticated animals in 
place of red meat." 

For Americans and those in other de- 
veloped countries, the recommendation 
that rats and oils provide ) 5 percent to 30 
percent of total energy is more precise 
than advice in earlier reports, which do 
not suggest a lower limit. But this issue 
brought disagreement from one panelist. 
Dr. Walter Willett of the Harvard School 
of Public Health; his disclaimer, the only 
dissenting voice, is included. Dr. Willett 
maintains that the panel did not find 
probable or convincing evidence that 
dietary fat causes cancer. 

Despite a movement encouraging 
people to see wine as benign and eveq 
healthful in offering some protection 
against heart disease, this new report 
says: "Alcohol consumption is not 
commended. If consumed at all, limit 
alcoholic drinks to less than two drinks ii 
day for men and one for women.’ ‘ Buj 
the report contains norecommeodations 
for dairy products, citing insufficieig 
evidence os to their link to cancer risks. 

The recommendations that do not dif- 
fer from earlier reports include eating 
five servings a day of fruits and vego» 
tables ( 15 to 30 ounces, or about 425 to 
850 grams) and seven servings of grains 
and legumes (20 to 30 (Minces), and 
limiting salt consumption to six grams a 
day. And like earlier reports, this one 
stresses the importance of not smoking, 
of maintaining ideal body weight and of 
exercise. r : 

The report was prepared by a panel 
headed by Dr. John D. Potter of the Freji 
Hutchinson Cancer Research Center iq 


ii i ill u and 

Dangers of Secondhand Smoke 

By John Schwartz 

Washington Past Service 

studying human health 
risks, there are few slam- 
dunks as compelling as the 
case against tobacco. However, foe case 
against secondhand smoke has been 
harder for scientists to prove, and at- 
tempts to do so have invariably met with 
controversy. At the same time, foe first 
class-action lawsuit in foe United States 
over the effects of secondhand smoke is 
under way in a Florida courtroom. And 
the Clinton administration continues to 
push for tighter restrictions on smoking 
in public places. 

A new wave of research, while not yet 
conclusive, appears to be adding weight 
to the argument that secondhand smoke 
poses serious risks at high levels. ‘‘The 
science continues to reinforce the harm 
of secondhand smoke,” said Michael P. 
Eriksen. head of the Health and Human 
Service Department’s Office on 
Smoking and Health. ‘ ‘The weight of the 
evidence is clear to everybody except 
those who have a vested interest in deny- 
ing science.” 

It might seem commonsensical that 
what's bad for the smoker would also be 
bad for foe uonsmoker — after all, foe 
same toxins found in cigarette smoke 
make their way into the lungs of 
□oosmokers. But those exposed to 
secondhand smoke get far lower doses of 
tobacco's toxins than smokers do — 

rough estimates put foe figure at l/70th. 
As toxicologists are food of saying, “the 
dose makes foe poison," and small doses 
of a potentially harmful substance might 
not hurt you, in part because the body is 
so good at repairing minor damage. 

Still, secondhand smoke has been de- 
clared a health risk by the National Re- 
search Council, foe Environmental Pro- 
tection Agency and in reports of the 
surgeon general. Each finding has been 
attacked by foe industry. When foe EPA 
declared secondhand smoke a "Class 
A” carcinogen, as hazardous as radon 
— and estimated it was responsible for 
3,000 lung cancer deaths annually, foe 
tobacco industry sued to force foe gov- 
ernment to retract. 

S INCE then, large population- 
based studies have generally 
supported foe initial EPA find- 
ings. The most recent example 
is a report from California's Environ- 
mental Protection Agency, a compre- 
hensive survey of the scientific evidence 
for health risks of secondhand smoke. 
The report cites evidence not just for 
cancer and heart disease, but also a host 
of other ailments — from exacerbation 
of childhood asthma and increased risk 
of sudden infant death syndrome to cer- 
vical cancer and spontaneous abortion. 

A tobacco industry spokesman dis- 
misses foe repent as " nothing new," but 
its supporters disagree. "This is going to 
be the most definitive governmental re- 
port on secondhand smoke for the next 

* Q 10 7 6 


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♦ A J2 
0 A 10 9 8 4 
0E 105 

Both sides were vulnerable. The 










3 NT. 


4 N.T. 


6 N.T. 




Pass Pass 

West ted the spade six 

Mystery of Mutant Frogs: 
Something in the Water 

WASHINGTON (WP) — The case of 
foe mutant frogs, a baffling environ- 
mental whodunit featuring Minnesota 
frogs with gross deformities, may be 
close to yielding a culprit: an unknown 
substance in foe water. 

For the past several years, researchers 
have reported discovering frogs in Min- 
nesota with unexpectedly high rates of 
developmental abnormalities, including 
missing limbs, extra limbs and even one 
frog with an eye growing in its throat. 

Since the initial scientific reports of 
foe Minnesota frogs surfaced, severely 
malformed frogs have also been found in 
other states, sooth era Canada and in Ja- 
pan. The abnormalities caused concern 
among environmental scientists because 
foe amphibians serve as deii«>Tft "sen- 
tinel species” whose health problems 
may warrant concerns for humans. 

In foe new research, state and federal 
scientists grew embryos of a frog com- 
monly used in research, Xenopos, in 
water from northern Minnesota we tland 
sites where deformity rates were High 
The researchers also allowed different 
embryos to develop in a variety of wa- 
tery environments ranging from no Min- 
nesota water to 100 percent Minnesota 
water over a four-day period. 

At concentrations above 50 percent, 
deformities were common, according to 
results released in St. Paul, Minnesota, 

by researchers from foe Minnesota Pol- 
lution Control Agency and the National 
Institute of Environmental Health Sci- 
ences, a part of the National Institutes of 
Health. Tadpoles grown in water from 
ponds without deformed frogs de- 
veloped normally. 

“We know that something in foe wa- 
ter, including groundwater used by hu- 
man residents for drinking water, is ex- 
traordinarily potent in malforming 
frogs,” said George Lucier, director of 
the institute’s environmental toxicology 

Researchers are now testing foe water, 
hoping to isolate foe chemical causing 
the mutations and to study the health of 
people living near foe affected ponds. 

Diabetes and Pregnancy 

CHICAGO (Reuters) — Women who 
smoke cigarettes or gain weight in early 
adulthood increase their risk of devel- 
oping diabetes during pregnancy, ac- 
cording to a recent study. 

Researchers at Brigham and Wom- 
en's Hospital and Harvard Medical 
School said they based foe conclusion on 
a study of 14,613 women who delivered 
babies between 1990 and 1994 and who 
had no prepregnancy history of dia- 

The study, published in this week's 
Journal of the American Medical As- 
sociation, said women who smoked 

several years,’ ’ said Stanton A. Glantzja 
researcher at foe University of Califor- 
nia, San Francisco. i 

Another recent report is smaller iq 
scope but offers another line of evidence 
su^xjrting the health risks of secondhand 
smoke, experts say. In findings reprated 
at the annual meeting of the American 
Chemical Society last month, Stephen 
Hecht of the University of Minnesota 
Cancer Center said he had detected foe 
metabolized leftovers of a cancer-causing 
substance found only in tobacco smoke in 
foe urine of nonsmokers exposed to 
everyday amounts of secondhand smoke. 
The substance, NNK, in animals causes 
adenocarcinoma, a lung cancer common 
to smokers. 

This research is among the first that 
goes beyond the statistical approach and 
attempts to describe a path of disease 
causation. "We feel this presents a link” 
between exposure and disease. Dr. 
Hecht said. But foe true level of risk 
posed by secondhand smoke will be very 
difficult to ever firmly establish, ac- 
cording to John C. Bailor, chair of foe 
department of health studies at the Uni- 
versity of Chicago. ^ 

“The fact is, there’s a lot we doij 
know,” Dr. Baiiar said. "Both extreme?, 
are wrong. We cannot act as if eveiy 
potential hazard was as strong as the 
hugest possible limit On foe other hand 
if we wait to deal with the problem until 
the proof is absolutely solid, we have 
waited too long. We do not want to wait 
until we have to count foe dead bodies.’-. 

more than five cigarettes a day before, 
pregnancy had a significantly higher risk 
of developing diabetes during pregri 
nancy than nonsmokers did. Even modrf 
est weight gains in early adulthood — 11 
to 22 pounds ( 5 to 10 kilograms) after 
age 18 — were also found to carry a 
significantly higher risk of diabetes aftej; 

^national manaoh 

MW! N frtlifj v Iff | 


A Warning for Men 

of testicular cancer are being told to 
particularly alert to the development ofg 
second type of cancer, A study four# 
such patients have an increased cancer 
risk, including a fivefold greater chaned 
of developing a form of leukemia. - : 

The study analyzed the cancer his; 
tones of 29,000 long-term testicular 
cancer survivors, including some 
treated as early as 1935, and found that 
1 ,406 had developed a second type of 

This translates into a 43 percent in= 
creased risk of cancer when compared 
with the general population, said 
Lois B. Travis of the National Canccfl 
Institute, lead author of a study in 
Journal of foe National Cancer Insti- 
tute. • . et 

“Our findings should prompt clinj: 
cians to follow patients with testicular 
cancer for life, even those cured decaog 
ago," Dr. Travis said. ^ 



Think big? 

^ You wish so finance a large-scale international project? 




Think twice! 



A second opinion is always sman. 

From a major German bank with incemarional experience- 



BT ’ s Shares Rise 8.5 % 
After Rival MCI Offer 

By Tom. Buerkle 

International HeraidTribanf 

LONDON — * British Telecommo- 
flicatioiu PLC’s shares soared 
Wednesday amid short-term euphoria 
over WorldCom Inc.’s sudden offer 
flw Md Communications Carp., bur 
the rival bid risked leaving BT bereft 

. of any loog-term strategy. 

.< ‘ ■ The unexpected bid also shattered 
if* die prev ailing wisdom about global 
telephone competition, illustrating 
that technological change and buoy- 
ant fin an c ial markets can enable up- 
start companies such as WorldCom to 
challenge the lead of established play- 
era such asBT, AT&T Corp. and the 
Global One alliance of France Tele- 
bbm, Deutsche Telekom AG and 
Sprint Corp. 

“It Sort Of blows all the thinking 
out of die water,” said Chris Lewis, 
senior telecommunications analyst at 
Yankee Group Europe. 

BT declined to comment on the 
rival offer, but investors placed heavy 
bets that WcirldCom’s $41 _50-a -share 
. bid would prevail over BT’s agreed 
(J-. offer of $32.73 per share. 

% BT’s shares surged 35 pence on 
London’s stock exchange, or 8.5 per- 
cent, to 445 pence ($7.19) 

This year, BT slashed its $19 bfl- 
lion offer for the 80 percent of MCI it 
Aid not own by $5 billion, or 22 per- 
cent. to reflect a sharp reduction in 
expected earnings from MCI’s costly 
domestic expansion. MCI had said it 
expected its local telephone opera- 


tions to lose $800 million this year. 

Thanks to WorldCom, BT sow can 
extricate itself from a controversial 
deal at a handsome profit 

The dilemma for BT is that it needs 
a strong American partner to remain 
at die head of the global pack. The 
United States accounts for ah esti- 
mated $200 billion of the global tele- 
communications market of some 
$500 billion, and, while some ana- 
lysts said BT could turn toward one of 
the regional U.S. Bell companies, 
they lack the national presence of 
MCL AT&T or Sprint. 

“BT suddenly lose; a lot of cred- 
ibility in the international market,” 
Mr. Lewis said. 

“There aren’t a lot of attractive 
alternatives if they wants US. base,” 
stud Brad Branch, global telecom- 
munications director at Deloitle & 

That is good news in the short term 
for Global One and for AT&T, which 
heads a looser worldwide alliance un- 
der the name Unisource. 

Until now, most analysts and major 
corporate customers have seen the 
competition as a three-way race 
among Concert, BT and MCI’s 

E lanned merger; the Global One al- 
ance, and Unisource. 

Concert has been regarded as the 
leader on tee basis of its market pen- 
etration and merger plans. 

But in the longer term, analysts 
said, WorldCom showed tee potential 
to mount a swift challenge. The com- 
pany has grown rapidly through ac- 

Pearson Expands in TV, 
Acquiring All American 

MCTs chairman. Bert Roberts, left, and BT’s chief, Sir Iain VaDance. 

quisitioos, with its global ambitions 
based on its MFS Communications 
Co. subsidiary, which caters to major 
business users by linking telecom- 
munication hubs in major cities across 
tee United States and Europe, includ- 
ing London, Paris and Amsterdam. 

Major corporations, whose huge 
appetite for telecommunications ser- 
vices is driving tee frenzied activity, 
welcomed the move. Unlike the other 
leading alliances, whose core mem- 
bers are former national phone mono- 

S olies. WorldCom is a product of 
eregolation that could inject keener 
competition, said Phil Barton, chair- 
man of the European Virtual Private 
Network Users Association, which 
negotiates telecommunications ser- 
vices on behalf of a group of major 

international companies. 

“It has maybe a more competitive 
pedigree,” Mr. Barton said. 

Shares in Cable & Wireless PLC 
also surged Wednesday, closing 33 
pence higher at 561, apparently on 
speculation teat BT could make a 

But analysts noted that BT aban- 
doned a previous merger attempt last 
year as too expensive when the shares 
traded around 450 pence. Thera is 
also abig question mark over Cable & 
Wireless’s stake in Hong Kong’s tele- 
phone company after tee territory’s 
return to China in June. 

An offer also could raise antitrust 
concerns because Cable & Wireless 
owns BT's chief domestic compet- 
itor, Mercury Communications Ltd. 

Tailoring Film and TV for the World 


LONDON — Pearson PLC branched out 
intt> “Baywatch” and game shows by agree- 
ing Wednesday to buy All American Com- 
munications Inc., a major Los Angeles tele- 
vision production outfit, for $509 million in 
cash and assumed debt 

Pearson, best known for its ownership of 
tee Financial Times newspaper. Hie Econ- 
omist magazine and Penguin books, will pay 
$25 JO a share in cash, a 4.6 percent premium 
to All American’s closing price, and will 
assume $136 million in debt 

Pearson was already taking a more down- 
market approach to tee television business. It 
owns Thames Television, a low-budget Brit- 
ish television channel, and Grundy World- 
wide of Australia, which produces game 
shows and soaps. 

As tee television industry moves into tee 
digital age, the number of channels will ex- 
plode, making it harder to make money on 
high-quality programming. 

“It’s a good deal; it complements Grundy 
very well,” said Louise Barton, an analyst at 
Henderson Crostb waite Institute. “Compa- 
nies can ’t afford quality programming, trash 
is tee only thing they can afford.” 

“We expect it to be eamiogs-enbaocing in 
tee first year,” Chief Executive Marjorie 
Scardino said of the All American purchase, 
“helping us achieve our group goal of 
double-digit eamiqgs growth.” 

All American produces a number of U.S. 
drama series, including tee global hit “Bay- 
watch” and “The Price Is Right," but it has a 
particularly strong presence in game shows, 
owning rights to 90 shows in 29 countries. It 
reputed an operating profit of $40 million on 
sales of $23/ million in 1996. 

• “What they’re really buying them for is 
tee game shows,” said Ait Rockwell, an 
analysts at Yaegcr Capital Markets. 

The chairman of Pearson Television, Greg 
- Dyke, said tee company's valuation of All 
American had been based more on the value 
of its international businesses than its do- 
mestic business/evea though American op- 
erations mate up most of tee company s 
syndication revenue. 

He declined to break down exactly what 
ratio Pearson had made its valuation on, but 
he predicted animal savings of a minimum of 
$10 million from the acquisition. 

"We have long adorned AH American’s 
creative achievements and entrepreneurial 
culture,” be said, “knowing it would make an 
exceptional fit wite our existing businesses.” 

Ms. Scardino denied suggestions that the 
acquisition was moving the company down- 
market. “TV is a mass medium, and en- 
tertainment is at tee center of the television 
business,” she said. -■ 

Pearson said that it would take a restruc- 
turing charge of less than £5 million ($8 
million) this year and that shareholders con- 
trolling 49 percent of All American had com- 
mitted to accepting its offer. 

Anthony Scotti, AH American’s founder 
and chief executive, will not stay with the 
company, which did not comment imme- 
diately on its purchase. 

Pearson shares- finished down 4 pence at 
780, while All American shares were up 75 
cents, at $25,125, in late trading. All Amer- 
ican stock has more than doubled in tee past 
12 months as the company benefited from 
rising revenue from its TV operations bote in 
tee United States and abroad. 

(AFP, Bloomberg, AFX) 

, ^ By Richard Covington 

Special to iht Herald Tribune 

■' CANNES — When the British 
Broadcasting Carp, agreed to co-pro- 
dace a televised biography series with 
&ie U.S. cable channel Arts & En- 
tertainment, it probably had little idea 
teat J. Edgar Hoover and John Wayne 
would give it so much trouble. 

Alleging that Mr. Hoover, the 
former Federal Bureau of Investi- 
gation chief, had a penchant fdr 
dressing/up in women's clothes was 
one thing. But alleging that Mr. 
Wayne, for decades the Hollywood 
image of Wild West virility, was bi- 
sexual was quite another. 

The BBC’s American partners 
toned down tee British treatment of 
Mir. Hoover’s cross-dressing, but 
they drew tee line on Mr. Wayne. 

*' “They cut it outoonmletely,” 

Paul Hamann, head of doormen 


fbr BBC Television. 
r *' Mr. Hamann is also expecting con- 
flicts over a series on the Middle East 
that it plans to co-produce wite tee 

Boston public-television station 

“The tone of the scripts on Israel 
will be an extremely delicate issue for 
the Americans,” he said. 

Wite global revenues now funding 
an increasing proportion of U.S. film 
and television production, broad- 
casters are being forced to wrestle 
wite a growing number of subtle and 
not-so-subtle conflicts with their in- 
ternational production partners. 

In the $1 trillion global film and 
television business, domestically 
produced television programs still 
draw die largest audiences. 

But companies are striving to cre- 
ate programs wite global reach, en- 
gineering co-productions from 
scratch and thoroughly revamping 
American series almost country by 

In some cases, they are creating 
works teat are meant to have no rec- 
ognizable nationality at all. 

The partners in this delicate cross- 
cultural dance include major Hol- 
lywood studios such as MGM Inc., 

Viacom Inrx's Paramount Pictures 
Corp- and PolyGram NV; smaller 
networks such as tee documentary- 
based Discovery Communications 
Inc., and independent producers such 
as California-based PM Entertain- 
ment Group Inc. 

What has driven the boomlet in 
international co-production over the 
past decade has been the explosion 
bote in overseas television channels 
and networks and in program pro- 
duction costs. 

“International sales that once ac- 
counced for oaly-a fourth of revenues - 
have quickly surged to 50 percent and 
will soon rise to 60 percent as markets 
in Eastern Europe. Asia and Latin 
America open up,” said Frank Man- 
cuso, tee chairman of MGM. 

Mr. Mancuso was in Cannes this 
week overseeing the launching of his 
studio’s films and series at Mipcom, 
an annual television market attended 
by about 10,000 broadcast buyers and 
producers from around the world. 

Films such as MGM’s “Man in tee 
Iron Mask' ’ and series such as “Star- 

and the Phitippinepeso^ 

Globally neutral themes such as 
that of “Lassfe” are sought 

gate SG-1 ” are ‘ ‘designed to have no 
nationality,” enabling them to play 
as well in Bombay as they do in 
Brooklyn, Mr. Mancuso said. 

The scramble to please all the 
world’s viewers all of tee time, or as 

See MEDIA, Page 13 


Women’s Gains in U.S . Boardrooms Slow Down 

By Adam Bryant 

New York Times Service 

N EW YORK — The number 
of board seats held by wom- 
en at tee 500 largest U.S. 
companies rose last year to 
10.6 percent of tee total from 10.2 
percent in 1995, but the rate of in- 
crease slowed compared wite previ- 
if bus years, according to a new census, 
r Catalyst, a nonprofit women’s re- 
search group based in New York, said 
ib survey had shown progress in sev- 
eral areas. Fbr example, 54 percent of 
the biggest 500 companies as ranked 
by Fortune magazine have at least one 
woman on their boards, compared 
wite 69 percent in 1993. the first year 
m which Catalyst took its survey. 

The survey also found that 181 
companies, or 36 percent, of tee For- 
tune 500 had two or more female 
directors, and 31 had three or more. 

But the increase in women’s rep- 
resentation on the companies’ 
boards, at 0.4 percentage point last 

year, was down from increases of 0.7 
percentage point in 1995 and 0.8 per- 
centage point in 1994. The increase in 
1993 was 0.4 percentage point 

’ ‘There has been a very impressive 
increase over five years.” said Sheila 
Wellington, Catalyst's president 
“But clearly tee rate of increase is 
slowing, and teat is regrettable.” 

For tee first time. Catalyst turned up 
a large company wite at least an equal 
number of men and women directors: 
Golden West Financial Corp. The sav- 
ings and loan association based in 
Oakland, California, has five women 
directors and four men. 

Herbert Sandler, who shares tee 
titles of chairman and chief executive 
of Golden West wite his wife, Marion 
Sandler, said Tuesday be was per- 
plexed by tee dearth of women in 

“We don’t understand tee issue,” 
Mr. Sandler said. “In our acquaint- 
ances, women are dearly as bright 
and able as men.” 

Industries that have the highest 

percentage of board seats held by 
women include cosmetics, savings in- 
stitutions, publishing and toymakers. 
Catalyst found. Industries wite tee 
lowest percentage of board seats held 
by women include airlines, computer 
software, securities, food services 
and engineering and construction. 

Catalyst said 81 companies, or 16 
percent of the Fortune 500, had no 
women on their boards. The reason. 
Ms. Wellington said, “must be that 
the CEO’s sense of what a woman’s 
experience and perspective can bring 
to a board has to be limited.” 

Besides Golden West Financial, 
companies with five female directors 
include tee College Retirement 
Equities Fund and tee Teachers In- 
surance & Annuity Association. 
Catalyst found six companies with 
four women on their boards: Avon 
Products Inc., Aetna Life & Casualty 
Co., Federal National Mortgage As- 
sociation. Gannett Co., Hasbro Inc. 
and Principal Financial Group. 

Catalyst also found a direct cor- 

relation between a company's size 
and the likelihood teat it would have 
women as board members. 

After dividing the Fortune 50 0 into 
five groups according to size, it found 
teat 61 or tee largest 100 companies 
had more than one female director, 
compared wite only 26 of tee smal- 
lest 100. 

For tee first time in its surveys, 
Catalyst analyzed the occupations of 
female directors. It found that 27 per- 
cent held corporate iobs. 16.2 percent 
came from me academic world, 14.9 
percent were entrepreneurs and busi- 
ness owners, and 13.5 percent 
worked in nonprofit organizations or 

Retirees and other professionals 
accounted far the rest 

Catalyst also found that companies 
in the Northeastern states were the 
most likely to have at least one wom- 
an on the board, followed by compa- 
nies in tee Midwest and those in the 
South. Companies based in the West 
were the least likely. Catalyst said. 

Mahathir Again on Attack 

Markets Plunge After Malaysia Urges Regulation 

■ Gwy*Je/ Of Our SKpfFrrm Dajxarbn “There is DO SUppOft CODling ID fOT fee 

KUALA LUMPUR — Malaysian stocks market,” said Victor Wan of South Johor 
and currencies across Southeast Asia took a Securities Sdn. “Players are jittery as they do 
fresh beating Wednesday after a new call not know where tbe ringgit is heading.” 
from Prime Minister Mahathir bin Mohamad The dollar rose to 33620 ringgit Wednes- 
to regulate foreign-exchange trading. 

“We are at a point where fear is feeding on 
fear,” said David Bassanese, senior econ- 
omist at Bankers Trust Australia Ltd. “As 
long as they come up wite anti-maiket rheu. 
otic, currencies and markets will come under' 
pressure. We’re getting into panic levels.” 

Tbe Malaysian ringgit, the Indonesian 
rupiah and tbe Philippine peso fell to record 
lows, while tee Singapore dollar and Thai 
baht dropped sharply. 

The Malaysian prime minister, speaking 
Tuesday in Santiago, Chile, suggested that 
currency trading should be curbed to protect 
developing countries. 

He also said a basket of currencies should 
be used to evaluate tee value of different 
currencies as fluctuations in these units are 
likely to cancel each other ouL 

The Kuala Lumpur Stock Exchange’s 1 00- 
share weighted composite index finished 
down 18.74 points, or 2.4 percent, at 

“We were starting to ger to a position 
where stability was coming through,” said 
Richard Gibbs, an international economist at 
MacQuarie Bank Ltd. in Sydney, when Mr. 

Mahathir spoke out again. 

In his speech to the Pacific Economic 
Cooperation Council, Mr. Mahathir repeated 
comments he made in Hong Kong last monte, 
comments teat teen sent the ringgit and 
Malaysian markets plunging. 

from 34.25. The U.S. currency also rose to 
L5320 Singapore dollars from 1 5295 and to 
35.85 Thai baht from 35.65. 

“Iti&gll starting to get a bit serious,” said 
. McJjftbsi'who cut his econ omic forecast for 
Malaysia, Thailand, Indonesia, Singapore 
and tee Philippines by as much as 35 per- 
centage points. 

The Malaysian economy is likely to ex- 
pand at 65 percent this year, he predicted, but 
if the dollar rises above 3.5 ringgit, growth 
could fall below 6 percent 

“There’s a knock-on effect on econo- 
mies, lisuch as rising unemployment, adverse 
income distribution and increased poverty, 
Mr. Gibbs said. “Unfortunately, labor is less 
mobile than capital When capital flees, then; 
are less jobs around.” 

“If these countries don’t get their act to- 
gether,” said Liew Yin Sze. chief economist 
at J.M. Sassoon & Co. in Singapore, “the 
contagion effect will just keep boomeranging 

Bangkok declared its support Wednesday 
for an Asian currency stabilization fund, an 
idea strongly opposed by Washington. “The 
so-called Asian Monetary Fund, if agreed and 
set up, will be a major step forward in regional 
monetary cooperation,” Deputy Finance 
Minister Chaovaral Chamvirakul said. 


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ftangsZer&> and New York canning 
and Oospiff pikas: new yukOmm 


Rallye Bid 
Is Backed 


PARIS — Directors of tbe 
supermarket company Casino 
Gmchard-Pfcrrachon SA re- 
commended Wednesday that 
shareholders reject a takeover 
bid by rival Promodes SA and 
accept one from Rallye SA. 

The founding Guicbard 
family, which owns 7.8 per- 
cent of Casino and 16 percent 
of its voting rights, is to meet 
Saturday to discuss tee bids. 

Pro modes is bidding 375 
francs ($63.47) a share for 
Casino, and 420 francs a share 
for Rallye to get its Casino 
shares. Rallye is offering a 
mixture of cash and convert- 
ible bonds that it valued at as 
much as 36 francs a share plus 
certificates guaranteeing tee 
value of Casino shares in 
1999, which it valued at 
380.75 francs a share. 

(AFP, Bloomberg ) 



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PAGE 12 


t , jn 


■ttt W {; 

30-Year T-Bond Yield 

September Manufacturing Slowdown 
Lifts Bonds, but Stock Prices Are Mixed 

Trade Tensions Heat 

U.S. Starts Action Against EU and 4 Allies 


A"'.* / ' ■■JwKXLW' 

* 4aaftx ' %■■■' 

ss sg iS a l lte 

Source: Bloomberg, Reuters k 

CcsfBedby ffcr Sufi Fnm Ddpadm 

NEW YORK — US. stocks 
were mixed Wednesday despite 
encouraging news in the first ma- 
jor report on September’s econom- 
ic activity. 

In late trading, the Dow Jones 
industrial average was up 30.21 at 
7,975.47. Advancing issues out- 
numbered dec liners by a 7-to-4 
ratio on the New York Stock Ex- 

Tbe Standard & Poor’s 500- 
stock index gained 3.62 points to 
950.90. The technology-heavy 
Nasdaq composite index lost 2.37 
points to 1,68332. 

While stocks plodded along, 
bonds advanced, with interest rates 
failing toward their lowest level in 
more than 1 Vi years amid signs That 

inflationary pressures remained 
tame last month. The benchmark 
30-year Treasury bond was up 1 at 
100 22/32, lowering its yield to 
632 percent from 6.40 percent 

A survey of factory executives 
by the National Association of 

MCI was the most active issue 
on the Nasdaq, surging on the 
news that WorldCom was trying to 
outbid British Telecommunica- 
tions with a hostile S29.4 billion 
offer ro acquire die U.S. long-dis- 
tance telephone service provider. 

WorldCom felL BTs American 


WorldCom fell, BTs American 
depositary receipts sbot up. 
Advanced Micro Devices fell 

Purchasing Management found 
that manufacturing activity accel- 
erated at a more modest pace in 

The data buttressed the decision 
Tuesday by the Federal Reserve 
Board not to combat inflationary 
pressures by slowing the economy 
with an increase in the central 
bank's lending rates. 

following its warning late Tuesday 
that lower-than -expected sales 
from its K6 microprocessors 
would result in lower revenue and 
a larger- than -expected operating 
loss in the third quarter. 

Marriott rose after Sodexho Al- 
liance said it was combining its 
North American food service and 
management units with Marri- 
ott's. (AP. Bloomberg) 

Cv*#M lif Our SsgfFmm OafUbta 

WASHINGTON — The Clinton 
administration accused South 
Korea, Japan, Canada, the European 
Union and Australia on Wednesday 
of unfair trade practices., starting a 
process that could eventually lead to 

economic sanctions. 

The charge againsr South Korea 
came despite 1 1 th-hour negotiations 
held over the past several days in 
which Seoul sought to keep from 
being singled out under a provision 
of U.S. trade taw known as Super 
30 1 . That provision allows the pres- 
ident to launch investigations of un- 
fair trade practices against countries 
and to impose punitive tariffs. 

President Bill Clinton and the 
chief executives of tbe U.S. Big 
Three automakers will meet Thurs- 
day to discuss trade and environ- 

mental issues, the White House and) 
industry officials said. 

But instead of instituting cases 1 
under the Super 301 provision of' 
U.S. law. the administration said & 
would file cases with die World' 
Trade Organization. ; 

The WTO cases the administra- 
tion will file specifically target: | 

• Japan's barriers that limit sales! 
of American apples, nectarines,! 
cherries and other fruits. 

• Canadian dairy subsidies that- 

restrict sale of American dairy 
products. ! 

• Subsidies that the EU is provid-! 

mg to support sale of - - processed' 
cheese. ! 

• Export subsidies the Australian! 

government provides leather used in' 
the production of auto seat cov-, 
ers. (AP. Reuters)-^. 

more than 1 Vi years amid signs that bank's lending rates. on’s. (AP, Bloomberg) ; t B i 

Lack of Bundesbank Concern Lifts Dollar Pact Struck at US Airways ® 11,11 

ImcnMlonU Herald Tribune 

Very briefly: 

• U.S. factory orders, production and exports slowed in 
September, the National Association of Purchasing Man- 
agement said, as its factory index declined to 54.2 from 56.8 
in August in a new sign that the U.S. economy will stay on its 
low-inflation path. In other indications, the Commerce De- 

partment said construction spending fell 03 percent in 
August and the August index or leading economic indicators 

August and the August index of leading economic indicators 
slowed its rise to a 0.2 percent gain, the Conference Board 

• The Bank of Canada raised its benchmark lending rate by 
25 basis points, to 3.75 percent, to ward off inflation, helping 

? ush the Toronto Stock Exchange’s 300 composite index up 
1.67 points, to a record high of 7,061.90, while the yield of 

Bloomberg News 

NEW YORK — The dollar rose 
against the Deutsche mack and the 
yen after a Bundesbank official 
said Wednesday that its strength 
was not a problem for Germany 
and a key survey showed Japanese 
managers to be pessimistic about 
their economy. 

In Germany, a central bank 
council member, Edgar Meister, 
said the dollar’s strength was not 
generating inflation pressure and 
was not a “cause for concern.*’ The 
comment damped talk that central 
bankers might soon raise interest 
rates to strengthen the mark. 

The mark s weakness “is not 

their primary concern,' 'said Elena 
Shperting, chief currency trader at 
Banco di Sicilia. “A weak mark 
betters their trade situation" by 


making German exports more 

In late New York trading the 
dollar was at 1.7735 DM, up from 
1.7601 DM on Tuesday. 

The dollar climbed against the 
yen altar the Bank of Japan's 
quarterly tankan survey showed 
executives to be even more gloomy 
about their prospects than expec- 
ted. The closely watched report 

also showed a growing number of 
manufacturers think the economy 
will not improve any time soon. 

“The data out of Japan showed 
no reason for interest rates to 
move," said Karl Halligan, chief 
currency trader at CIC Bank. 

The dollar rose to 120.895 yen 
from 120375, even though Prune 
Minister Ryu taro Hashimoto said 
Tokyo would take “appropriate" 
action to keep its value against the 
yen stable. 

The dollar also rose to 5.9590 
French francs from 5.9084 francs 
and to 1.4598 Swiss francs from 
1.4480 francs. The pound fell to 
$1.6159 from $1.6190. 

AFX Ne\vs 

WASHINGTON — In an accord 
that is likely to pave die way for a 
$14 billion aircraft order from Air- 
bus Industrie, TJS Airways Group 
Inc. and its pilots reached a tentative 
contract aimed at allowing the air- 
line to become more competitive. 

The labor deal was concluded 
minutes before a midnight Tuesday 
deadline for US Airways to affirm 
its intentions to buy 120 Airbus jets 
with options for 120 more. 

The Air Line Pilots Association's 
executive council, which represents 
US Airways’ 4,800 pilots, agreed to 
the contract Wednesday. Ratifica- 
tion by a full membership vote is 

expected within two weeks. | 

The Airbus deal was. contingent 
on the talks with the pilots asso- 
ciation, but the airline soil has con- 
tract negotiations pending with its 
14,000 technicians, 8,000 flight at- 
tendants and 10,000 other workers! 

The pilots agreed to the creation 
of a low-cost division to compete’ 
with such low-fare carriers as Delta 
Express and Southwest -Y. 

Pilots assigned to the new di- M 
vision, dubbed US2. would mabU “ 
tain their current salaries for 
months, then take gradual pay cufs, * 
until US2 salaries were established* ■■ 
az 1 percent higher than those of th$ f, 
low-cost rival airlines. 

the benchmark 30-year bond fell to an all-time low of 6.24 

• United Parcel Service of America Inc.’s pilots over- 
whelmingly rejected the company's latest contract offer and 
vowed to strike if UPS does not improve its proposal. 

• Dayton-Hudson Corp.’s Target division said it planned to 
open six stores employing about 1.200 people in the Phil- 

____ I .1 J -f i nno Jr ; • 

Patriot American Grows 


adelphia area by the end of 1998, as part of its expansion into 
tbe Northeast 

• Bank of Nova Scotia agreed to buy Mocatta Bullion, the 
gold-dealing unit of Standard Chartered Bank PLC, which 
has a seal on the London Metal Exchange, making it one of 
the five institutions worldwide which sets the daily inter- 
national gold price. Details of the transaction were not dis- 

• Representative Richard Baker, Republican of Louisiana, 
said he might consider sponsoring legislation to block a 
controversial derivatives accounting proposal ifhe determines 
it would unfairly hurt banks' repeated earnings. 

• Ray Ozzie, the computer programmer who created In- 

ternational Business Machine Corp.’s popular Notes soft- 
ware. has formed a company, Rythmix Corp~, to design 
products that complement Notes. Bioonfarg, wj> nyt 

Bloomberg News 
DALLAS — Patriot Amer- 
ican Hospitality Inc. said 
Wednesday that it had agreed 
to buy the hotel leasing op- 
erations of Carnival Hotels & 
Resorts Inc. and all of WHG 
Resorts & Casinos Inc. in 
transactions worth a total of 
about $785 milli on 
Tbe purchase of Carnival 
Hotels' management busi- 
ness for $485 million will 
make Dallas-based Patriot 
American one of the largest 
U.S. hotel management 

The transaction also adds 
die Grand Bay and Registry 
hotel brand names to Patriot’s 

soon- to-be-acquired Wynd- 
ham brand. 

The purchase of WHG, 
which owns the Condado 
Plaza Hotel & Casino and 
stakes in other Puerto Rican 
hotels and casinos, for about 
$300 million, gives Patriot 
American a presence in the ; 
Caribbean market and gam- 
ing business. 

“These look to be very 
smart deals for Patriot Amer- 
ican,** said Paul Keung, a 
lodging analyst at Deutsche 
Morgan Grenfell Inc. 

The acquisitions will bring 
to about $2.8 billion the 
amount Patriot American has 
spent expanding this year. 

Wednesday’s 3 P.M. 

The top 300 mot active shores. 

The Associated Prass 

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14ft .* 

ft ft 

mu n 

1 & - 


!& *5 

27ft 77ft 
14ft MV. 
5Sft S7ft 
9» 5ft 

in* let* 

H 10ft 
7ft 7 


3ft 3ft 
7* 2 ft 
5ft 4* 
lift 10ft 


Most Actives 

b b* r** 

£ & ft 


Daw Jones 

OPM Hftb lm wo at*, 
rndus 7992.17 601746 794426 791539 +4881 

sr wwiuiiitii 

Camp 355 134 2S53J3 2539.19 255338 4-1A05 

Standard & Poors 


ITL 200 mlEgo -ph rtTOpct 

Mn+nhl 0x97 IIL97 >1103 111.64 -032119,269 

COLD (NCMX1 MorW m- 41 Hl-58 -832 1325 

100 tnr is.- dolan per Mr ra. Est soler 100072 Pie*, a**: 58823 

0d V 33800 33X00 m60 -870 836 p< B«.op«nMj: 128594 up 38i 

No* 97 33430 -850 

Doe 97 142.10 33530 336.10 -880 98276 UBOJg 1-MOWTH KMERI 

Fob 96 34230 337.40 337.40 -080 19352 aMBtan-pMariOOpd. 

Apr98 34400 33930 33930 -880 5,774 » 1 ” 9436 9436 +881 2JM] 

Jon 98 34530 34130 34130 -flat 9328 'S'S +aj01 31,4,1 

104190 29ft 
69W 15ft 
67780 44ft 
M1W 28* 
49063 76 

41266 429b 


100 tens- Haters pw ten 

Oct 97 20860 28670 30840 unctL 18875 

Dec 97 19890 196.90 19770 *070 46381 

Jan 98 197.10 195410 19580 -870 14375 

Mar 98 19340 19110 19230 4L40 1X799 

Mar 98 19380 19130 19140 -0.90 14170 

Jul 98 19S5D 19330 19330 -130 6313 

EM. talas M A Tops k*bs 32395 

Tints open Intii4i52. an ia«4 

34X10 -880 4663 Ok 47 9417 94.15 9417 +082 9858 
34530 -0JQ 481 EA sates NLA. IM s*s 8303 

cotton j worm 

58000 Bis.- cnVs par Bl 
0097 6980 6885 6885 -835 63 

Doc 97 7185 7135 7134 +089 51,719 

Mar 98 7335 7385 7X10 -806 15301 

MarlB 7X92 7X71 7385 -883 7342 

Jinn 7465 7430 7430 -087 &7UB 

Est. talas HA. Tins solas 32349 
Tlws open M 90448 up 5679 



Doe 98 35280 347J0 34730 -OH 8468 Tun open M 72357. op 138 
Est. sates 90000 Tim sales 117304 

Tun Open M 18X284 Off 1X350 EURODOLLARS (CM EW 

<8000 lbs- cents par te 

Do 97 1170 7339 7X41 -fl.19 4401 

Doc 97 2+.00 2X73 2X7* 8.11 55330 

Jan W 2410 2X94 2195 -0. 10 16369 

MorW 2433 2412 2414 -808 9838 

Mar 98 2435 2420 2437 -885 7.174 

JUIW 2440 2430 2454 -081 &4T9 

Est. salai NA Tim solas 2X829 
Tun upon H 108171. up 581 

2X000 lbs.- ants pork. 


Si mWan-ptsanoOpd. 

0097 9435 9423 9425 +801 21753 
No»97 9422 9420 9422 +082 11861 

Qd 97 9800 9450 9490 -875 7,738 1^2 14M 9417 9419 +002 596.163 

•to* 97 9X95 JxS «70 SS tW W» WW J4J4 +801477,117 


42800 got cent* par gal 

No* 97 5885 SO® 5835 -842 47308 

Doc 97 WAS 5890 5935 -845 29312 

■Jan 98 6835 59.60 59.90 -8X5 21.390 

fob 98 6030 59.90 68 80 -035 12357 

Mar 98 5935 5935 S935 -820 8SS1 

•The finest watch in the world 


SP 500 
SP 100 

Pllltaui Mq 

Mo* tarn Osh 7 PAL 

111730110837110837 111038 
8BW9 68435 68589 68838 
20683 20586 20534 20585 
11X77 11187 11181 11X19 
955.17 94738 94738 95002 
92X72 91X83 91X83 91X70 

26272 XMb 
35873 40* 
34645 14* 

29994 34* 


. 27 27ft 5V, 


27* It +*b 
77ft J3H -11*. 
Bft 32*b t!tf 


33Ji33«ft & 

39* 40 +1. 

47H 47^ JVb 

33ft 31ft -<1* 

Jido-Lmts Audevum. 

hbuuit-AuguMtJ’tguet, in 75 

In OP-64 a* 

7.18 49874 +131 

m ns 


»U0 29735 30048 +3.13 

47X82 46939 47174 +£lS 


Doc 97 9780 95A0 9635 -875 26^*4 ^ 

Jao98 9780 unch. 18(1 9X99 9192 9X99 +807 241369 

Apr 98 57 JO 5750 5750 -835 4598 

Mar 98 5650 56.10 56.10 -840 X901 

EsL sates NA. Tun salts 6X186 
Tun open M 147334, ofl XI 74 

FebW 96.40 9840 96A0 -060 1872 «•» +*** 

Mir 98 9650 9680 96.45 -055 4.945 ^5? + S54 3S 1 ! 39 

Hftb Low 1PJ4 

W&59 166132 1&81M 

VoL Hl|t 

5*567 357* 
534910 36ft 
141706 55ft 


99377 47* 
WHO 22ft 

33* 34ft -W 
Mft 35ft +5Nb 

21* +JW 

& ¥ 

Apr 98 96.10 96.10 96.10 -070 919 £"2* g® «« 9JJJJ 'Wf* 

Moy 98 9X65 UKtL 1479 SJJS 7X73 93-78 +007 97.194 


W4W I46IJ? 661A4 -485 

157-46 1371 Jl 137101 J22 

901.10 189X4B 9Q0A9 +6JH 

laiiM oTS +04H 
23SX5B 224836 229L64 +1063 

mss Tilira 11730 -1.U 

Of! 5ft -I- 

lift 71ft +7*1 

50ft 53ft +3. 

35 35M. -2W 

131*0 132 -ftr 

2*b 3Vb +ft 


XOOO bu mMonoo- cants par bushel 

Nat 97 625 620 62W5 -I 100366 

Jan 98 639 672 62319 -2* 28466 

Maris 634ft 67 B 628 U -4* 1X173 

Mar 98 643ft 617 637ft -4* 11335 

-U9S 649 642ft 6431, -5* 10-09 

EsL solas NA. Tim sates 4X272 

TWo upon bit 16826X op X10I 

Jan 98 9680 unch. 

Est sates 8500 Urn sates 18855 
Tan open tot 49863 up W 


5800 boras.- cants par bay as. 

00 97 51430 -45Q 

No* 97 51630 -450 

Dec 99 9X72 9387 9X71 +807 0X730 

Morn 9X73 9X66 9X71 +807 71,784 
EsL sales HA Tim sates 438CQ 
Tun open bd 8718764. op U923 

VMQ bbi- dotes per hot. 

No* 97 2133 2181 2186 -0.12 10X947 

pec 97 2138 2898 3184 4188 7X464 

*n 98 21.10 20.92 20.95 -OJ79 4UH3 

FBU98 20.58 2082 2086 4109 28405 

Mar* 2896 20J2 20J8 4189 1X783 

Apr 98 2080 2066 2072 -088 18444 

EsL sates NA Tun sates 147392 
Tan open H 425-968 up 18608 


Dec 97 18148 

18106 4L0006 27378 

Dec 97 52X00 51580 51X50 -470 48991 l- 40 * l- 40 ® 1-6M0 418020 23S 

H«ti m spj*. as 
7KL4I 69936 70X17 +231 

MM 1* Ml OM 

Dow Jones Bond 


&000 bu nMnum- coats pv bushel 

Doc 97 355* 3S0ft 3S0* -3ft 6X818 

Mir 98 369ft 365 365* -Jft 2587S 

Mar 98 376* 3721: 372* -3ft XI 18 

JU 98 381 374 37415 -2ft 11.123 

Ext sates NA. Tun sates 18726 

Tun open Inf 1 0734X alt 108 

Jan 98 52780 519.90 519.90 -180 21 ****** >»*■ 

Mar 98 53050 52X00 524.90 -580 14.174 E*t Idn NA TWl sates X33I 

Mar 98 S*LOO 52880 52880 -580 X368 Tuo^iwn U 28848 off 319 

JUP8 53a® 532 .10 532.10 -5J» 2-154 

Sap 98 5X780 53580 53580 -580 647 CANADIAN DOLLAR ICMER] 

Est. sates 2S80QTW8 HUM 41 J96 rffw 1 <W nSi ii P SS > °' TMti-jian-ui 

Tim opwi ht 9X589. op 4695 2E2 ^ 


100800 donors, spur can. » 

Dk97 7294 7262 73XWJ802C 47844 

Mar 96 .7320 7302 7320+08018 1732 

Jua98 7346 7325 7345+08021 435 

EsL (ten NA Tun sates 13714 
1414 Tun upon M 49JTO op 326 


sl- ante por m. 

6885 66J2 6657 -M2 
6755 6685 6X25 4US 
WJ7 6905 6987 -077 

7377 72-40 7X47 4U7 

7807 69-40 69-47 4130 
6975 6900 6980 4150 

s 28399 Tun sates 19762 
m H 9165X an L364 


50 bn* ic.- daOais pw bu* k. EsL sdos NA Tun sates 1 

Oct 97 43150 42X60 430.10 -140 1414 Tun open W 49 779, up 221 

Jan 98 43X50 42880 43160 -270 9781 

Apr 99 43X50 421.10 421.10 -290 735 6ERMAN MARK (CMEIO 

Jul 98 417.10 -270 3 I2UW mate. 8 par note 

EN. sates NA Tun sates 82S2 2*2 -g® \ 

Tun open W 11939, up 6 ■ swr - 5W1 i 


18000 on Wirs. *per nun blu 
Nor 97 1220 IsfflO 1120+8038 5X792 

Dec 97 1240 1120 1185 +0829 31.754 

Jan 98 U10 3890 1130 +0810 27,758 

Rib* 2850 2760 2790 +081 B 18734 

M» 98 2890 X530 £560 +0830 1X640 

Apr 98 2385 2-320 2825 -0801 7805 

Ed. sates NA Tan sates 68413 
Tun open bit 22951 X aH 1926 

20 Bands 

10 Industrials 

10482 104X4 

102X10 10271 

1QUM 106-47 

4QM S 39M -IMS. 

i* ftKt * 

15ft 14ft 14ft +9V 

ft Jb ft 

lift 10ft IM -IW 

24ft 23Vb 74VS +lft 

9493 24ft 23Vb 24Vb 
8872 5ft 4tes «* 

Trading Activity 


A te wte un (HMl Brute) 

) 3 I2&OXI mate. Spar men* 

D*CN 5725 569 5664410041 56872 

MorW SW7 5691 56974)8039 2-337 

Am 98 5766 unch. 2511 

Parlous EsL sates NA Tim sates 14767 

Tim apsa bd 6U28 off 1 17 


IMm (Hite Grate) iff ^ «**S° 

SPM • IMift 1682ft 1638ft 1639ft Ji? 1 

Fontert 1673ft 167480 1641ft 1642ft A«4 83ffl 8360 

50.000Kb.- ams parte. 

Oaw 7X40 7770 77.42 -052 

Nu»9T 79 JO 77.95 7882 -080 

Jan 98 8070 79.12 7972 4U5 

Mar 98 79.90 78.95 79.00 4L47 

Apr 98 8010 79.10 79.10 -OJD 

1*0*98 8070 79.90 79.92 -067 

Ed. sates 5810 Tim sum £431 
Tun open bu 1 7577. Ofl 793 

1673ft 1674JW 1641ft 1642ft 2*2 ffK J3JS 4100X2 74 6» 

Copper Odboaos (Won Crete) MOT* 8469 8469 8469 4)8035 80S 

Spat 20W.00 209X00 213100 213480 8678 unch. 165 

ftlURM 211400 2117.00 215380 215480 EsL ictus NA. TUTS sates 2X714 

Tuos opw Int 77594 up 1783 

No»97 6180 5950 6020 -046 

DOC97 6080 59.15 5950 4U1 

Jan 98 5970 59.20 59-65 -029 

Feb9B 5980 5980 5980 -039 

Mar 98 6059 undL 

Apr 98 6X20 61 M) 6X20 +081 

May 98 6X99 unch. 

Am 98 6139 unch. 

EsL sates NA Tim sates 47,152 
Tun opto tel 998BX an 4205 






XUS 3440 

26) *5 

4 ID 

Market Soles 

■ l ' k : ; 

64X00 64480 640ft 641U 

64880 65000 64580 64680 SWISS FRANC CCMER) 

ua dBamspar metric ton - tots cfl 00 torn 
OdW 17980 17780 17875 -250 21.109 
E*0» 97 1RL75 17175 17975 —250 2X856 
Doc 97 18280 18050 18150 -250 14877 
Jan 98 18X75 18X00 18375 -280 1X311 
FebW 18150 18X75 18150 -175 7505 

Mar 98 18075 18075 18180 -150 4919 
Apr98 NT. NT. 17650 -175 1421 

EsL sates: 14912. PiM. sales : 24796 
Plow, open bit: 9X1 27 up 4014 

MW _ 12&000 bom S per Irene 

Spot 47B5.M <79580 677000 678080 Oac97 89 89 8898 8911 4UXWS tem 

fewartl 689080 689580 686008 687080 Mm 96 8980 8975 8980-08045 1.470 


4ROOO ■».- canes par lb. 

Od 97 6660 67.45 <757 4L22 

Doc 97 6X85 6X15 6123 -0.17 

Feb 98 6285 6X10 62-C -007 

AprM 5952 5BJU 5980 -082 

Jim 98 6605 <SJ2 65-57 4115 

EsL sates 1X519 Tun sales 14505 
Tun span im 31-549. up 1191 

W 562500 563580 563580 56A80 EsL sdes N A Tim sates 4976 
SeBtnteSSeSw" M * L0 ° Ttertopsntel37J71,oB4S2 

136X00 143100 143880 MEXICAN PESO fCMER) 
Anaanl 135X00 135380 135780 135680 

135200 135380 135780 135680 SOXanp^oCIpwona 

Hteh i«. rw— n™ Ei^E • 12S70 n» .12365+80242 34222 

HJab Law Close Chpe OpM Mar 98 .12147 .12110 .12141+80262 &937 

— Am 91 .11790 .11750 .11760+80319 1.906 

Financial Est. HMNA Tun sates NL312 

LStCMEH) Tim apse M 34279, up 596 

: AMomatic.RnvalOak^ 

t gt* art ZnAateAonab tten.. t fitej^ teSuAMn 





48886 70954) 

2855 4385) 

74X57 779 JS. 

totiVTiidunB^b Ui fW 

■HJ fmmt n ytatlKi Jlftt—rlMI, Mm »/» ■#£ teaHi Ilf 71 +96 6,71 



Par Amt Rec Pay Company 


PUgrioi Am Prim _ 8635 10-10 10-23 

Sues Mgb Low Low Otp 

Lou LNte dtps 


+0800 tes.- cents par lb. 

FsbM 6480 6X30 6X0 -1.10 
Mar 98 6X75 6X25 6X50 -0.92 
May 98 6580 6407 6580 +0.10 

Est sstei 1722 Tim totes X348 
Tun open M 4577. up 364 

Financial Est. sates NA Tun sales HUH 

UST BILLS CCMER) Tim opeo tat 34279k up 996 

SI mOton-HsallOOpcL 

Dae 97 9583 9X00 9581 +083 4860 3-MONTN STERLING fUFFQ 

Marie 9582 9580 9582 +085 1363 £500000- phoMOO pd 

Am 98 9490 unch. 153 Dec 97 9X59 9X57 9 IS) 

EsL sdasNA Tun sates 495 ***£ «J1 «« 

Tim aprni tel 8475. up 169 £89 92J3 BN 

SIOOOOO WfeMOl) 464ttl> OflOO p(7 

Dec 97 92J9 9X57 9X59 +081 124483 

MarW 9X57 9X51 9X56 +083 103.964 

Jim 96 9X59 9X53 9X56 +083 87822 

tepW 9271 9287 9X71 +082 74092 

Dnw 9190 9X85 9289 +081 58^17 

M»9? 93.11 9385 93.10 +482 57.991 

Stock Indexes 



Dn97 96685 95580 5X1175 +425 1842SB 
Mar 98 97450 96750 96875 +390 3867 

Jim98 96580 9HL75 98075 +555 761 

Est. in na. Tim ernes «* ™ 

Tun Open M 184294 off 532 

oZn ImTira m *' ^bxbm £" w ^ 9339 hjd 375 B 5 

Est. sales NA Tun ides 51.722 tSL*SSE 2^*“ 

Ton Open H 2248040113083 Pm-openlnL: 634Z16 Off 11JM2 



10 meiric teas- S per ton 

FTSE 108 (UFFE) 

E25 per tadn pahd 

D« 97 94200 53118 539X0 +668 67503 
Mar 98 54068 54068 5088 +658 1,972 

EsLcatac 14166. Pteu sates: 14114 
Plea, open InL: 69.176 up 1885 
































5104000 Brin- pte & ]2nte oi 100 pd 
Doc 97 1I0-26 1NME 114-21 4-17 


Mm* ii0-16 iii« 11M9 +16 1X3*5 £?£ 55 -wvS 

■ h "* 1W - M j S5 Iffl t%£ ??5I 

** mS 

Tun apniH 38X134 up i860 Sep* 9579 2576 9576 +481187733 

EsL sates NA Tim sates 74 W 
Tun apm H 36X334 up I860 

Eit. sates 5-271 Tim sates 4397 
Tun open M 10X234, up <40 


<8 pd-SlOOOOOptj B 32nds of 100 peO 

DkW 9559 9556 9559 +802 159,90 
MarW K53 9440 9443 +0JB 1645* 
Am 99 9578 9576 9578 +082 77.1M 


FF200 par Indn point 

SaW 30718 39868 30658 +545 nxn 
MB 30745 30040 30738 +640 4720 
NW97 30848 30038 30640 +595 14583 
Dec 97 30918 3005-5 3)058 +745 11,1)8 
EeL sales: 22521 
Open W-; 74745 off 2X224 

Doc” IJfl? n«y +101611310 Sep 99 951 S 9513 K.15 +082 64510 


37500 Bts.- amts oar 6 l 

Dec 97 16490 16175 16275 -415 IX3SB 

Mv* 15375 15050 151.90 +050 47W 

May* 14400 14450 14480 +440 3806 

Jul 98 1050 14075 10 JO -0.10 2854 

Sap* 136 JO 13680 136J0 -410 Sll 

EsL sties 4581 Tim sates 4618 

Tun upon M 24854 lip 324 

Mar* 116-11 11546 11581 +101 3*436 

Jim 98 1U-20 unch. %vra 

SOP* 714-10 unO. 7.900 

Est. sctesNA. Tun sates 424956 
Tun open W65J494 off 1705 

EsL sateK 195111. Pmmtefc 189J21 
Pm. open tat; L6343I4 up 1931 

Commodity Indeiras 


1 1X000 Ibc-cinh perl). 

Mar* 11.71 H-99 1159 +0.13 95697 

Mar* 11.77 1171 1176 +0* 24320 

Jill* 1150 1154 1156 +085 14029 

0098 1158 1155 1156 +006 14971 

Est Hies 21731 Ten sates 21877 
Ton open tat 144319. rtl 1969 


Tun open bit 657894 ofr 1705 FFSmBBan-ptElPlOOpd 

mscDiTnittn Doc 97 940 9689 9641 +081 34423 

9419 9416 96.18 + 401 34429 
JunW 95.94 9593 95M +401 24021 
Dec 97 720-11 119-16 120-09 tM 174313 SmM 9579 9SJB mIhw 7ij»a 

Mar* 119*30 11M0 12087 +880 2» £* SS Sl tSIl SSS 

EsL scriea; 111554 Prv.mIok 86896 Mar 99 fS M *48 +401 39J74 

Rwr.a pen tat-' 17430 up VH9 Eri-sMe«0427. 

GERMAN GOV. BUND (UFFE) Op* W; *0592 up W74 

MuSfuU* +438 29X«4 

Mar* 1KU5 10X38 10X56 +439 £661 SS97*8f*Sa84 **73 -4H 104436 

sates 20X743 Pm. sates: 131.159 Mar* 9462 9445 9456 -411 97514 

Pm. open WU 294067 * 4073 Jan* 9S8S 94*f 945* -409 81,460 

Close PnMoes 

Moody* 153770 154240 

Routes U8X60 159160 

DJ.Fvftres 1554 14547 

CRB 24X57 24347 

SomxcMa&AssedaM Press, London 
I nrjF tiwrKW Futures Exchange Inti 
Potmtaum Exchange. 

See our 


every Moaday in The Intcrmarket 

m m 
<m m 

Bib B* 

« ■ 3ft 

9b ft 
11* IBS 
eft a 
2ft 2ft 

Itb 7V. 
SUb 3ft 
U 13* 
18H 17* 

Ift 7* 
3* 71b 

s* m 

1* l'A 

ift n 

nb Mr 
9ft 9*1 

is is* 

S* 5ft 
,9ft 9ft 
W* 19ft 
ft ft 
fb 8 m 
5 4ft 
74b » 

14* Uft 
ft. ft 
m 9* 
1* I Hi 

9ft Ift 

m 12* 

Ift M 
» 9ft 
49* 660. 

9* 9ft 


10ft IB*b 
im in* 
u te 

*« *i 
A flb 
10ft DM 
IM 17V. 
Gf* S6b 
1U. lift 
. »b ft 
Wft 17U 
4ft ift 
J* 2ft 

4 -ft 

t& a 


7ft +ft 
4ft -ft 
»b -ft 
Ift -V. 

ft * 

Ift -V. 


in -ft 

i -ft 


M -Vb 

„ . _ . stock spur 

Hudson Charter .3 tor 2 ipOL 

BtekRck InvQtia 
BfcARck 1999 

Coastal Fnd 
DOE Inc 
Dean Foods 
Duff & PM pi 
Eaton Vonas 
GFS Bancatp 

High YM income 

Ulty Indus.. 

ft 32 

176k -Mb 
Ift +» 
n +i» 

B +s 

19ft -ft 

t i 

* * 

15Y» *»b 

W .Vb 
ffib +IVb 

mb +H 


teb +9b 

16ft +lb 
12ft .* 

5M .l»i 
2Ma -ft 
1ft +ft 
JVb .V. 
s* -n 

Hft ft 


ft SwHI Energy _ 10% 10-13 1423 


CNBBancsh/s Q 32 ia.14 i«jn 

[J^^lHojnePnct Q .11 10-15 iJ^jj 


Par And Rec PW 

M JM79 10-15 14^* 

S , , . c J675 1431 12-12 


| Amer Restaur Pt 

BkkRcfc Income 

>10-15 10-2S 
1 10-17 1081 
> 10-73 1087 
110-10 10-24 
110-15 1031 
10-15 1431 
110-15 10-31 
110-15 118 

M J05T2 10-15 1081 
M JM16 10-15 108C 
M JQ33 TO-TS 10^ 
Q .10 10-15 1IT 
O .10 11-14 1S-R, 

j» 10-10 IO-W 

84 11-14 12jC 


0 84 11-14 ljje 

Q 84 12-9 1* 

Q 8011-14 12-TS 
U .M 18-15 10-3T 
M .D5 980 10-15 
O -26 J0-24 1001 

8 .065 10-16 1080 
JO 12-1 12-Tf 
M -06 10-15 10J£ 
M .0675 11-28 Ifi 
M JJ675 1280 l^tf 
Q .125 10-16 10®: 
Q JB12-1® 1* 

M MAS 10-17 l JJf, 
O 42510-J® IW 
a .7577-20 )2-Jf 
0 JJ55 108 10J* 

in -n 

f * 



JS +1 
£ * 
z a 

1 * 

.s? +» 

ft - 
ft A 

pfttiau* b+^pruxJowte Bn»a« pm & 
rtwre/ADR; §-poyublb Ip CaBflfflon fuottS L i 
n-witMyi o-quertertw p fts mK wi wal o 

an +H 
in + 1 *. 
«• -*> 
4ft +ft 
26* 4ft 

Wft -ft 
m +u 
Jh th 

UVb +lb 


tm -« 

14 ft 

5 5ft 

19b HS ft 

4 5ft -ft 

mb lift -* 

Db 5ft ft 

BH 259b ft 

Ift IV. +V, 

in m 

■ft *fts - 1 ! 

.tel +ft 

Hf E* 

m m 
* v. 
59ft 51 vt 
47* 0 

2ft 2Vb 
ft ft 

ft 3 ds 

10 Wft .lb 

4ft 4ft -ft 

159b Wb -ft 
5 * 5* -b 

to ft - 

Stock Tables Explained :'n . 

^” 1 ,^ Yeorty hi^o and tows refled (tie orevtous S2 wotka ph* 

yeanl ^ hitfuna^ renge^ and dMdend are shown fortheBeM 

S*^™* 00 * "to* *^driws»od(«JWhtod.e.Ooi^^ 

,OTCB <l i n8 >2 monttiL I . annual rate increased on lo^ \ 

.aaion toKen at West dividend imatyM, k - dMdrnd or nakl this year. oA 

ornmnitottva ^wWiahysntta In orrean. ai -onnuol 

L *10 ^*?* P «t a wten. TJw hWMow range beglm wtth the start M Mfe£ 
n -'^.^f^^^-F-ln^dlv^ctannuolrareuriJinovm. WE-ortcHwnttagtartWj 
Ojawed-endmulurefufutr-tHvWanddoeloreriarpaidlnBreeeduwiaraDnlW-plTMdofll +« 

^■- D y den ^. bB g t,BWMl mitS^oSs-t- J • 

m va ^ m ^ta.^rn-iBMMbaiasaHainmYU^YUIiLx-satas)om. 


PAGE 13 


BP Chief Outlines Plan on Global Warming 

Browne Proposes an ‘Emissions-Trading’ System to Help Cut Down on Pollutants 

k By Martha M. Hamilton 

lr Washington Post Service 

b British Petroleum PLC, the world’s third- 
largest oil and gas company, may soon begin 
-[trading in a new commodity — greenhouse 

i r. Jotot Browne, chief executive officer of BP, 
,?to!d government officials, environmental lead- 
ers and others at a conference in Berlin this 
i; week that die company would measure and 
v report the carbon dioxide emiRsfanq fr o m its 
operation* next year. Over the next two years, 
-’-he saw. Bp will set targets for these emissions, 
b ' Mr. Browne, who has become increasingly 
visible in the debate on global warming, said BP 
t i would then work with the Environmental De- 
;, fense Fuad to create a system of “emissions 
_■ trading" within the company to find the most 
, .cost-effective ways to control carbon dioxide 

Scientists and politicians are debating wheth- 
er to establish a similar international system to 
deal with the threat of global climate change. 

President Bill Clinton’s administration, still 
trying to formulate a policy to take to an in- 
ternational summit meeting on die issue in 
Kyoto, Japan, in December, will hold a White 
House conference Monday to try to produce 
one. Interior Secretary Bruce Babbitt told a 
meeting of foe Union of Concerned Scientists 
this week that the administration was com- 
mitted to going along with binding pollution- 
control targets and timetables but that it was still 
debating the amount of reductions to be sought 
and the timing. 

In general, European officials have pushed 
for bigger curs than Washington has appeared to 
favor. Mr. Browne broke with other oil-in- 
dustry officials in May by arguing that the risk 
of global wanning required immediate action. 
In a speech in California at Stanford University, 

he acknowledged that the science surrounding 
the issue was uncertain but said BP had con- 
cluded there was enough evidence that pol- 
lution was contributing to global wanning to 
begin taking precautionary action. 

Emissions trading has been used successfully 
to reduce other pollutants in the atmosphere. 
Such trading systems allow companies to de- 
cide whether to install pollution controls at their 
own facilities or, if it is cheaper, to pay to reduce 
emissions elsewhere to achieve the same over- 
all reduction in emissions of pollutants. 

For instance, said Daniel J. Dudek, a senior 
economist with the Environmental Defease 
Fond who is working with BP, a chemical plant 
in Texas might find that controlling emissions 
there would be expensive because the plant did 
not always ran at its capacity. Instead, the 
chemical plant might choose to "buy" reduc- 
tions in emissions from another BP facility, such 
as an offshore oil and gas dr illing operation. 

EU Clears Limited Aid to Thomson Multimedia 


^ BRUSSELS — The European Commission 
said Wednesday that it had allowed France to 
inject 1 1 billion French francs ($1.85 billion) into 
Thomson SA’s consumer-electronics unit 
,vBut the commission seta number of conditions 
OP the aid for the beleaguered company. 
r'The commission, the executive body of the 
European Uni mu said Thomson Multimedia 
ufould have to limit its share of the EU market for 
television sets to 10 percent through 2000, a level 
i? said was "sigQifiic&nfty less than its past and 

present market share." The decision took into 
account assurances by French authorities that the 
consumer-electronics company would enter into 
strategic industrial partnerships- 

The commission concluded that the restruc- 
turing plan for the company, which has a strong 
U.S. presence through its RCA unit, ensured that 
it would be viable in the long term. 

French officials had told the commission that 
the capital injection would settle all outstanding 
accounts and that they had no intention of provid- 
ing further assistance, the commission said. 

"On the basis of an analysis of the restruc- 
turing plan carried out by a consultant, the com- 
mission has concluded that the company’s ob- 
jective of returning to profit in 1999 is feasible," 
the commission said. 

Thomson Multimedia has posted huge losses 
since the early 1990s, leaving fee French gov- 
ernment with little choice but to recapitalize or 
sell it Paris applied to fee EU for permission to ■ 
provide aid after a failed move by a previous 
government to sell fee company to Daewoo Corn, 
of South Korea. (Reuters, AFP, AFX) 

° • 

MEDIA: International Co-Productions Often Call for Some Delicate Tailoring 

* Continued from Page 11 

many and as consistently as possible 
chives some producers to distrac- 

; George Shamieh, whose PM En- 
tertainment distributes "LA. Heat" 
and other action-oriented series, is 
pressured by Japanese programmers 
to inject more science fiction ele- 
ments into programs, while Italian 
broadcasters complain of too much 
action, too little romance. 

*■ "One thing they all agree on 4s the 
need for the latest in gadgets and 
firepower,” he said. "Audiences 
around fee world cannot get enough 
of beat-seeking devices, remote 
pulse detectors and robots." 

‘ But the other elements of each 
production need careful consider- 

ation. Id Britain, for example. Dis- 
covery's series on fee Luftwaffe 
during World War II devoted for 
more attention to technical aspects 
of conducting air raids than fee 
American edition. 

“The Americans wanted a 
stronger focus on triumphs and 
heroics," said Chris Haws, fee net- 
work's European vice president for 
commissions and production. 

“We’re constantly on fee lookout 
not to frill prey to a Eurocentric 
bias," Mr. Haws said. 

In Asia, the network encountered 
an entirely different set of potential 
flash points. Documentaries treating 
fee Nanjing massacre by Japanese 
troops, an event that ignites rancor- 
ous debates between Japanese and 
Chinese, were pitched one way for 

Japanese viewers and another for 
Chinese audiences and overseas 
Chinese in fee region. 

Rather titan tailoring programs re- 
gion by region, PolyGram searches 
out existing tides that have "a 
branded notoriety," said David El- 
lender, the studio’s president for in- 
ternational television. Its updated 
version of the 1950s series "Lassie" 
and its companion piece to "Star 
Trek," “Gene Roddenbeny’s Earth: 
Final Conflict" trade on an instantly 
recognizable fictional formula to 
draw international audiences. 

Elsewhere, Hollywood studios 
are strengthening their European 
base by establishing joint ventures. 

Paramount is collaborating wife 
fee Berlin-based producer Ufa, a 
subsidiary of Bertelsmann GmbH, to 

develop European "movie fran- 
chises,'’ said Gary Marenzi, pres- 
ident of the studio’s international 
television group. Studio scriptwriters 
in California devise scenarios to be 
shot in English in Europe wife a nnx 
of European and American actors, 
wife the aim of spinning off tele- 
vision series, he said. 

"Even if we foil to place (he film 

or series in the U.S., foe joint venture 

is a way to referee costs by not re- 
lying on big-name stars and taking 
advantage of European tax incent- 
ives and generally lower production 
charges,'’ he said. Fox Television 
Studios, a subsidiary of News Corp., 
was started up in August wife a 
similar ambition, "filling in as a sort 
of form team for the majors," David 
Grant, president of the studios, said. 

Easier Loom 
Are Urged for 
Water Plans 

By Kelly Couturier 

Special to the Herald Tribune 

ISTANBUL — A top investment 
banker called Wednesday for mul- 
tilateral lending agencies to help re- 
duce the investor risk in water in- 
frastructure projects so feat 
financing for sorely needed projects 
could move forward. 

“Water is a highly sensitive polit- 
ical business,” David Suratgar, 
deputy chairman of Morgan Gren- 
fell International, said at a confer- 
ence here. "Unlike power and tele- 
communications, water is 
considered God’s gift," he said, 
malting it “an essential commodity 
considered in most cultures as a free 
good which is difficult to cut off 
when t ar iffs are not paid.” 

Adjusting water charges, no mat- 
ter how necessary it may be to pay 
for infrastructure improvements and 
new projects in the years ahead, 
presents political difficulties for 
governments, he said, and investor 
caution reflects these concerns. 

Mr. Suratgar was addressing the 
two-day conference on "World Wa- 
ter Financing for fee Future, 1 ' 
sponsored by the International Her- 
ald Tribune. 

To reduce risks in water projects 
and facilitate financing, Mr. Sur- 
atgar suggested making long-term 
debt more easily available and in- 
creasing guarantee facilities. 

He urged such international lend- 
ing institutions as the World Bank 
and International Finance Corp. to 
help create facilities yimifar to the 
European Investment Fund, which 
is designed to support the financing 
of infrastructure projects. 

Making long-term debt more read- 
ily available, he said, would reduce 
the need for municipalities to borrow 
in foreign currencies fra water proj- 
ects. Taking such steps at the local 
level should help increase returns to 
investors while keeping fee cost 
down fra osera, Mr. Suratgar said. 

Securing substantial sources of 
local debt is essential to break open 
fee fledgling water sector to inter- 
national investors, Jeffrey Leonard, 
president of Global Environment 
Fond, said at the conference. 

The World Bank has estimated 
that more than $600 billion will have 
to be spent an building and upgrad- 
ing water-supply facilities around 
the world over the next decarte. 

*V, f X xrc 

w* ***.'+ acr '**"* ***** 

? Investor’s Europe 

mm --,, ■ i • I • 


. ..... 

•»! ' m • tUE- w ■ V. '-'<■/%, si* 


Source: Telekurs 

Very briefly; 

• Sodexho Alliance SA of Fiance said it and Marriott In- 
ternational Inc. would combine their North American food- 
service and management units, creating Sodexho Marriott 
Services, fee biggest catering company in the United States. 
The company would be owned 51 percent by Marriott and 49 
percent by Sodexho and would trade on the New York Stock 
Exchange. Sodexho is to contribute $304 million to the com- 
pany, which would take over $1.44 billion of Marriott’s debt 

• Coca-Cola Co. opened four bottling plants in Russia, bring- 
ing its market share to 20 percent 

• Ikea, a Swedish home-furnishings retailer, plans to invest 
$133 million to open stores in Moscow and St Petersburg, fee 
Swedish business newspaper Dagens Industri reported. 

• WJBL Smith Group PLC rejected a takeover offer freon 
Tim Waters tone, fee former owner of W.H. Smith's Wa- 
terstone’s book-retailing unit The offer of 200 pence a share 
valued Smith at £568 million ($917.5 million). 

• AO Avtovaz, Russia’s biggest automobile company, faces 
bankruptcy tins month if it does not sign apian tojpay its 8.05 
trillion rubles ($1-37 billion) of debt to fee state, First Deputy 
Prime Minister Boris Nemtsov said. 

• France’s new-car sales fell 40 percent in September from a 
year earlier, to 130,417, trade figures showed. 

• Dresdner Bank AG said Alfons Titzrafo had been elected 
chairman of its supervisory ‘board, succeeding Wolfgang 
Roeller, who resigned Sept 16 amid a tax-evasion inves- 

• Gucci Group NV will open 14 stores next year, including 
six in Japan and one each in Duesseldorf, Zurich and Vienna, 
as part of an $80 million capital-investment program, fee 
company's president and chief executive officer, Domenico 
De Sole, said. 

•Standard & Poor's Corp. assigned a rating of A-plus to 
Lloyd’s of London. It was fee first time the insurance market 
had received a credit rating. Bloomberg, afp.afx. Ream 


tags Low am Pm. 

High in am Pm. 

High Low Ont Pm. 

High Low am. 

— Wednesday, Oct. 1 

Prices in local currwicles- 

Wgh Law Oom Pm. 


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11430 11490 1I6J0 11530 
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DmfadwBank 126.90 124.15 
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142 143 14180 

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179 179 18450 

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14650 15050 147 

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Grenada Gp 

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Market Closed 

The Hong Kong stock mar- 
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for a holiday. 

ilnmi WB IS* U0S MM 

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348 349 172 

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1115 1132 115* 

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545 549 5X0 

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950 958 952 

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6X3 697 6X1 

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3405 3625 3600 
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15885 14130 16650 
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6820 69S1 7200 

1660 1692 1780 

27950 28450 28850 
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Christian Otar 








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690 693 698 

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08X0 441X0 43480 
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1242 1261 1261 

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□4X0 444 40 

290 29670 296 

771 795 782 

2750 7794 27B3 
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23650 236 

560 551 

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555 SW 
862 859 

3000 2951 

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121X0 179X0 
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ScnmlaiB 312 326 328 

SKFB 22530 222 222 

SptrtcTjkai A 16330 180-50 J82 

Store A 13130 129 151 

SsHandebA 364 26030 76130 

VbtooB 218 215 218 

The Trfb Index 

■■Jan-1. IBBZmMO—- - -Las 
■^Borid Index 17& 

sgo Paulo -xasiisg 

BrodesroPW ,11X9 11X0 11X0 1135 

BmhHwPfel 842X0 835X0 82500 842X0 

CntaPU 42X0 60X90 61X0 61X0 

9530 92X0 95X0 9230 
17X0 76X0 16X2 76X8 

539X0 583X0 585X0 fflQXO 

BoutanCDPM 725X0 705X0 715X0 700X0 

Ugw Sen*J« 49a® «9X0 490X0 469X0 

43a® 39030397.110 39000 

.PM 319X0 J13X0 316X0 312X0 

PauQstaLlH 200X0 195X0 196X0 198X0 

SdHadond 42X0 4130 4130 41X90 

5“”"Cnn 1041 1040 1061 10X5 

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RAGE 15 

v Victim of PC Slump 

Softbank’s Stock Falls as Debt Mounts 

I Softbank Corp § 

tUoMibcrx News 

TOKYO — Softbank Corp., the 
o?e-tnne darling of Japan’s over- 
«ft-countfir market, has fallen out of 
favor as investors try to 
’Whether the company can sendee its 
«£oc and manage its expanding cor- 
porate empire. 

. The connmter-softwarc distribut- 
or founded by the billionaire Masay- 
oshi Son made its stock-market de- 
but in mid- 1994, and its shares 
tripled to a peak of 12^08 yen 
($101.64) in April 1996. 

' Since then, ies shams have 

price since August 1995. ‘ 

The plunge was prompted in part 
r* by a decline in personal -computer 
p saks ™ Japan, which raised concern 
over tbe impact on Softbank’s core 
business and on the debt it has 

M ymwt uw Momouvu 

U-S .-based computer-related compa- 
nies as ZifF-Davut Publishing Co. and 
Comdex, a trade-show organizer, 

; Adding to the uncertainty was 
Softbank's unwillingness to provide 
more details to investors about its 
overseas operations, which account ■ 
for three-quarters of its total op- 
erating profit 

‘ ‘People who used to look at Soft- 
bank as sort of a plum of the OTC 
don’t think that anymore," said 
Ridhard May, an analyst at D.E. 
_ Shaw Securities (Japan) Inc. “In- 
^ vestora are starting to get a little 

Mr. Son, Softbank’s president, 
has brushed offtalk about the stock’s 
decline and the company's debt 
"It’s an overreaction," he said 
last month of the price decline. He 
said the company was in good fi- 
nancial condition. 

Softbank has spent more than $4-5 
billion in the past two years investing 
in more than 30 computer compa- 
nies, mostly American. Last year 
Softbank laid $1.4 billion for 80 
percent ofKingston Technology Co., 
a California-based maker of memory 
devices. The year before that, it 
bought Ziff-Davis for $2.1 billion 

and Comdex for $800 million. 

Ziff-Davis publishes three of die 
top-selling computer ™»gpgfare fa 
the United States. Comdex stages 
tbe world’s largest computer show. 

Softbank also has spent $200 mil- 
lion investing in more than 30 In- 
ternet start-up companies. These in- 
clude stakes in Yahoo!, a search- 
engine developer for the World 
Wide Web; CybetCash, an Internet- 
payment company; the network 
software developer Novell Inc.’s 
Japanese subsidiary, and Asymet- 
rix, founded by Paul Allen, co- 
founder of Microsoft Corp. 

In addition , Softbank owns 25 per- 
cent of a Japanese sateUire- television 
venture in partnership with Sony 
Corp., Fuji Television Network Inc. 
and News Corp. The company fin- 
anced that buying spree in part by 
issuing 300 billion yen of bonds. The 
other liabilities of Softbank and its 
subsidiaries raised group debt to 836 
billion yen as of March 31. 

Servicing that debt could become 
more difficult with the slowing of 
peraonai-compn ter sales fa Japan, 
where Softbank controls 50 percent 
of the software market, analysts 
said. It dominates the market as the 
distributor for Microsoft, Cisco Sys- 
tems Inc., Novell, Loms Develop- 
ment and Oracle Corp. products. 

"If you want to access the retail 
software market in Japan, you have 
to go through Softbank." said Mar 
hengra Negi, a computer-industry 
analyst at Merrill Lynch Japan Inc. 

Personal-computer sales grew 4 
percent in Japan in the April-June 
quarter this year, down from 51 per- 
cent in the year-earlier period, ac- 
cording to the Japan Electronic In- 
dustry Development Association. 
For the full year, the association 
predicts that sales growth will 
tumble to 16 percent from 37 per- 
cent last year. 

The slowdown could affect Soft- 
bank’s earnings growth. For the year 
ending March 31, the company fore- 
casts that group net profit will rise 5 
percent, to 9.5 oiffian yen, on sales of 
550 billion yen. That compares with 


Pboin by Tbra YuwuJu/Agmec Hna»-IYcPfl 

Masayoshi Son, Softbank Corpus founder, led its rapid expansion. 

a 57 percent rise in' group net profit 
last year on 360 billion yen in sales. 

Softbank does not provide sep- 
arate earnings results for its U.S.- 
based businesses, but officials at 
Comdex and Ziff-Davis said earn- 
ings this year were on track to ex- 
ceed last year’s results. 

Comdex’s president, Jason Chud- 
nofsky, said after-tax profit this year 
would be higher than the 5120 mil- 
lion the company earned last year 
and that revenue would be "well 
above” last year’s 5300 million. 
Comdex's business has expanded 
since Softbank bought it in 1995: 
from eight events in four countries 
to 40 events in 21 countries. As a 
result, Mr. Chudnoftky said, Com- 
dex is worth $1.5 billion to $1.6 
billion, twice what Softbank paid for 
it two years ago. 

But the lack, of detail about Soft- 
bank’s overseas operatiom has frus- 
trated Stone analysts and left some 
investors uneasy. 

Interest payments on the 300 bil- 
lion yen of bonds that Softbank has 
issued over die past two years will 
total 7 billion yen this year. It also 
needs to come up with 93.3 billion 
yen over the next three yeais to 

redeem six sets of maturing bonds. 
Its ability to roll over those bonds at 
an attractive rate would suffer if 
earnings fell, analysts said. Eighty 
percent of Softbank's bonds out- 
standing pay an average coupon rate 
of 3.12 percent. 

Softbank’s shares jumped 36 per- 
cent in two days Last month on a 
Nihon Keizai newspaper report that 
the company may get a listing on the 
fust section of the Tokyo Stock Ex- 

Such a move, Mr. May of DJ3. 
Shaw said, would unlock "pent-up 
demand" for tbe stock among in- 
stitutional investors. 

"Many institutional investors 
have restrictions preventing them 
from buying over-the-counter 
stocks," Mr. May said, but many of 
them would like to buy Softbank 
stock because of the film's size and 
its potential for earnings growth. 

The move would require Softbank 
to divulge more financial informa- 
tion because of the more stringent 
reporting requirements for first-sec- 
tion companies. That also could help 
Softbank's share price by dispelling 
some of the uncertainty that sur- 
rounds the company, analysts said. 

Taiwan’s Rush to the Mainland 

Defying Government, Firms Invest $10.8 Billion in 6 Years 

A&ence France-Presse 

■ TAIPEI — Taiwan companies have 
poured more than $10.8 billion into China 
in the past six years, the Economic Ministry 
said Wednesday, showing clear defiance of 
! government- efforts to restrict ventures in 
the mainland. 

About 19,800 investment applications 
were made to the government's investment 
Commission from 1991, when Taipei lifted 
a ban on indirect investment fa China, until 
last month, tbe ministry said. 

Unofficial figures compiled by academics 
and researchers put the number of appli- 
cations at 35,000, worth an estimated $30 

Taipei has tightened its controls over 
mainland investment since President Lee 
Teng-hui called for a ‘ ‘no haste, be patient’ ' 
policy last year. 

On July 15. 1996, the government pro- 
hibited Taiwanese from investing in in- 
frastructure and land development. 

But that prohibition appears to have gone 
unheeded, analysis said. 

‘ * Most of tile firms here have envisioned 
a bright prospect for the China market, 
brushing aside high investment risks,’ ’ said 
Joyce Wang, an analyst at Jib Sun Se- 
curities Investment Consulting Co. . 

Undaunted, Taipei demanded two 
months ago that domestic companies in- 
vesting in the mainland register with the 
government by the end of September arfece 
a penalty of as much as 5 million Taiwan 
dollars ($175,000). 

Many companies, including Kfagtel Tele- 
communication Co., the island's leading 
telephone maker and Hon Hai Precision 
Industry Co„ as well as a son of Y. C. Wang, 
chairman of Formosa Plastics Corp„ rushed 
toregister before the deadline. 

Deputy Prime Minister Qian Qichen of 
China called on Taipei oo Monday to 
quickly approve direct mail, shipping and 
trade links across the Taiwan Straits. 

"We demand that tbe Taiwan authorities 
lift the restrictions on the development of 
tbe cross-straits economic and trade re- 
lations,'' he said. 

Taipei High-Speed Rail Plan 

AFX News 

TAIPEI — GEC AJsthom, Siemens AG and their local 
joint-venture partners in the Taiwan High-Speed Rail 
Consortium said Wednesday that they would form a 
company capitalized at 103.8 billion Taiwan dollars 
($3.63 billion) to build and operate Taiwan's first high- 
speed railroad. 

The consortium is to raise 51 percent of the planned 
capitalization, or 52.9 billion dollars. 

Japan Sets 
NTT Pact 
With U.S. 

Procurement Accord 
Extended for 2 Years 


TOKYO — Japan and the United 
States have extended their agree- 
ment on procurement of foreign 
equipment and materials by Nippon 
Telegraph & Telephone Corp. for 
about two years, the U.S. Embassy 
said Wednesday. 

The renewal of the accord is ex- 
pected to help ease the two nations' 
trade relations, which have been 
strained by Japan’s widening trade 
surplus and its failure to deregulate 
its poets. Tbe United States and Ja- 
pan also are to try this month to reach 
agreements to make Japan’s aviation 
and auto-parts TYiariwm more access- 
ible to American companies. 

The announcement came a day 
after NTT made its first si gnificant 
push into the American telecom- 
munications market by agreeing to 
pay $100 million for a minority 
stake in Teligent Inc., a small wire- 
less communications company 
based in Virginia. 

By acquiring 12 J percent of the 
company, NTT is making a small 
but potentially lucrative bet that 
some American companies seeking 
integrated voice, data and video 
communications will choose a rel- 
atively untested wireless technology 
over fiber-optic cable, the prevail- 
ing delivery system. 

Teligent aims to win customers 
away from the regional Bell tele- 
phone operating companies fa 
America by offering advanced com- 
munications services directly to 
buildings without using wires: 

Washington had been seeking a 
three-year extension of the 1982 
procurement agreement that it says 
helped make Japan’s telecommn- 
nications-equipment market more 
competitive by making U easier for 
foreign companies to sell their 
products in Japan. 

The two countries agreed to extend 
the accord, which was due to expire at 
midnight Tuesday, until NTT is 
broken into two regional carriers and 
One long-distance earner, a Ministry 
of Posts and Telecommunications of- 
ficial said. That is due to take place by 
April 2000. U.S. negotiators tried and 
failed to expand the pact to include 
procurements by NTT subsidiaries. 

{Bloomberg. NYT. AFP) 

li Investor’s Asia 

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Source: Tetokurs i ra o nwima i HcfaUTiflMK 

Very briefiys 

• South Korea’s three largest auto manufacturers, EGa Mo- 
tors Corn, Hyundai Motor Ca and Daewoo Motor Co, said 
their total wtoidwide vehicle sales fell 6 percent in September, 
to 226,181, for their second consecutive monthly decline. 

• Ford Motor Co., which holds a stake in Kia Motors, asked 
the South Korean government to protect Ford’s rights as the 
biggest foreign shareholder of the near-bankrupt Kaa Group. 

• Toshiba Corp. said sales of tixnnd crystal displays in the 
year ending March 31, 1998, would be about 1 15 billion yen 
($949.6 million), down from an earlier forecast of 135 billion 
yen, because of slowing sales of personal computers. 

• Hitachi Ltd. cm its pretax earnings forecast for the current 
financial year by 36 percent, to 70 billion yen, citing faffing 
chip prices and declining appliance sates in Japan. 

• Japan cut taxes on alcoholic beverages such as whisky and 
raised them on traditional Japanese spirits in response to U.S. 
and European Union criticism tfaar us taxation system dis- 
couraged consumers from buying imported liquor. 

• U.S. cigarette makers, bowing to pressure at home, pledged 
to end TV and radio advertising in Japan. 

• Singapore Telecommunications Ltd. will cut phone rates 

to 31 countries by as mochas SO percent Nov. 1, its third rate 
cut tins year. Bloomberg, AFP 

Japan Telecom Reaches Abroad 

Bloomberg News 

TOKYO — Japan Telecom Co. acquired International 
Telecom Japan Inc. for 74 biffion yen ($614.7 million) 
Wednesday, making it the first Japanese company to offer 
both international and domestic long-distance services. 

The acquisition will raise the company’s share of Japan's 12 
trillion-yen phone-service market and could put pressure on 
competitors to cut prices. With the acquisition, Japan ^ Telecom 
will become the country’s third-laigest phone company, after 
Nippon Telegraph & Telephone Cop. and DDI Corp. 



Management Joint Trust 
lRoedeHesse-1204 Geneva 
Tel ♦+41’22’328’93’33 

Arts and Aadqnes 

every Saturday 


Notice orre-tnvttaflon to Under for the 
BoBd, Operate and Transfer (BOT) contract for a 
development project comprising a pnbfic garden, a car park and a commercial centre 
at Res Beirut - plot No. 1226 

The Lebanese Government, represented by tor Grand] for Development and Rmantractto) sod the MankipaBty of Beirut, 
announce the re-tendering of the BoBd, Operate and Transfer contract for the above-meatkmed project, 
fa addition to fee Anas or grouping of finro which have been pnequafflled for this project during the first invttatioa to tender, 
candiditfES eligible to bid include all Lebanese or foreign Anns, acting separately or in joint venture, which are jodged snkahie to 
carry out this type of project on the basis of the criteria set out ia the post-yaiifflcattoa document iriddh forms part of tbe tcader 
doc u ments. 

The main components of the project wffl occupy the fbOowtog areas: 

■ PnhUc garden (green space, _) about M00 m 2 * Shops, re s t a ur an ts, ... about 5,000 m 1 

• AndHuy foeffides (storage, kitchens, ...) about 4J00 at* a Car park (about 1,200 vehicles) about 44,700 m 2 

• Clrcntodon apace (access ramps, Chopping arcade*—) about 2£00 mf 1 • Office space about &200m a 

The project nffl also fadnde the CmdmMmb for an office tower of approximately 48,000 m 1 

The tender document, inefading the posf-qnaOBcation document, ffiO be avaSaMe as of Monday 1519/1997 from the Comncfl for 
Development and Reconstruction, Taflet d Serafl, Beirut, Leba non . Candidates may obtain tbe document against paymen t of 
USSIQJMM) (tan thousand US dollars) by means of a certified banker's cheque drawn in favour of the Council for Devdopmoat and 
Reconstruction. Bidders who purchased the tender document for the Brat htvttottm to tendcr^ wiB receive tbe new doernnent free of 

Bids should be defivered to the CDR office for receipt of tenders by Monday 17 A 1/1997 before 12 noon (Belrat time). 

Envelope No. 1 (technical and administrutive) will be opened in tbe presence of all Udders WtsUng to attend to tbe CDR offices at 12. 
noon (Beirut time) on Monday 17/1 1/1307. The tender committee will emdaate the offer* to order toanaem the anttahoty of Udders 
to cany oat the project and wffl then pre pa re the Hat of tbe prapsaHUcd candidate*. Envelope No. 2 (financial) of the candidates who 
do not quBtywEB be returned unopened. 

Envelope NoJ (flnaodal) of preqaaBHed Udders wffl be opened In the presence of aB mil bidden iritiitttf to itttaul on a date to he 


For farther Information please contact: The Cotmcfl for Development and Recomtradlon -TaBetd Sendl - Beirut, Lebanon - TeL 
+961 1 643981/2/3 - Fax: +961 1 864494 


Notice of rr-invftntkm to tender for the 
Bnfid, Operate and Transfer (BOT) cootnutfora 
dev el opment project compr isi ng a odtnral and commer cial cotapiei A car park 

at Tafl Square - Tripofi 

The Lebanese Government, represented by the Cotmdl for DevdopHXrt and Recoratraction and the Mnakipa&ly of Tripoli, 
announce Ac re-tendering of the BoSd, Operate and Transfer contract for the above-mentioned project 

Till i aiiilMnrn eHgWdr to Md are the Lebanese or forejgaffnaa acting alone or to Jobrtvtauarewtfa others wftich are judged satiable 

to carry otrttWs type of project Ob the bash of the criteria set oat fa tender doenweats 

The tender doemnent wffl be svanaMe as of Wednesday 1/10/1997 from foe Coancfl for Development and Reeonstraetloa, TaBet el 
Sti^L, Belrat, Lebanon. CfcHUdates semf obtabi Out docmncid against payment of USS2^KX) (Two thousand US dnflars) by mem» of a 
c+ixpa* drawn fa firwmr of the CototeB for Develoianati and Beconatraettcfift. Bidders who pnrehaaed the tender 
document for the first invitation to tender win receive the new document free of charge. 

Bids shorfd be delivered to the CDR office for receipt of teadera by Monday 1/12/1997 before tt noon (Beirut time). 

Eovetope No. 1 (technical and adadofarative)^ wm be opeded hi the presence of afl Udden whfaing to attanl fat the CDR offices aft W 
Mnnd^jr 1/1 2/1 997. The tender cotmntttec wffl evahate the offers hi order to assess the atdtabdlty of bbMai to 
enny owt the project and wfll then prepare tbe Ust of tbe prcqaafiOcd candidates. Envelope Na 2 (flnawcfad) of tbe candidates who do 

not qnaHffitiH be returned anojpened* 

Envelope NoJl (fhondal) ofpreqnalilled bidders ^ will be openedin tbe presence of aRMch Uddors wbdUng to attend on adato to be 

For farther Information please contact: Tbe Coancft for Dndopmead and Reeonatnctlon -Toilet d Serafl- Bdrot Lebanon- Tel: 
+961 1 643981/2/3 - Fac +961 1 864494 

3V°1 for executives 

— — 1 1 1 mm| 


total executive readers 

Source: 1PS0S aorklntj executives 1997. • A.I.R. 

N°1 for opinion leaders 

f y^p^rrii . 


;Si(i V.i 


X of opinion leaders questioned who read at least 
3 copies per week. 

Source: I FOP opinion leaders survey. April 199C, 
covering 1,100 French political and economic 
personalities and intellectuals. 

Le Monde also leads the field In terms 
of total circulation (purchased 
copies) with 367.787 copies, ahead of 
Le Figaro, 364,584 copies. A success 
story that t rimed lately benefits all 

Sou-ce: le Honce. Diffusion Cont.r0 1 e 1996 
ue Figaro. OSH 1996 

N°I for French decision makers 

Coniacl le- Monde Advcrtlsina; Jean-Chrfstophe Desarca 
Tel: 33 l 4? 17 39 66 Fa*: 33 1 4£ 1/ 39 24 

Le Mo rule, quite simply N°1 




PAGE 18 

World Roundup 

A Tie m One-Day 
International Game 

CRICKET Chris Harris hit a bril- 
liant 77 Wednesday to give New 
Zealand an improbable tie with Zi- 
mbabwe in Bulawayo in the first of 
three one-day cricket internation- 

Zimbabwe batted first and made 
233 nms for nine wickets in its 30 
overs. In reply. New Zealand 
staggered to 137 for seven wickets 
in 36 overs. With two overs left 
New Zealand needed 30 runs with 
only two wickets left Harris and 
Gavin Larsen scored 13 in the pen- 
ultimate over. Harris hit a four off 
the fifth ball of the last over and 
needed to score two to win the 
match off the last ball. He was run 
out going for the second to leave the 
two teams level on runs and wick- 
ets. (Reuters, AFP ) 

Samaranch Talks Golf 

Olympics The International 
Olympic Committee has opened 
discussions with golf organizations 
on including golf in the Olympics 
but said it almost certainly would 
not happen before 2004. 

Juan Antonio Samaranch, the 
IOC president, met with leaders of 
golf bodies in Spain last weekend 
during the Ryder Cup. 

Gilbert Felii, IOC sports direc- 
tor, said talks involved the World 
Amateur Golf Council the Royal 
and Ancient Golf Club of Sl An- 
drews, the European Golf Asso- 
ciation. the U.S. Golf Association, 
the PGA of America, die U.S. PGA 
Tour and the PGA European Tour. 
Fell! said the talks were preliminary 
and no consensus was reached. 

Golf was in the Olympics in 1900 
in Paris and 1904 in SL Louis. Or- 
ganizers of the 1996 Atlan ta 
Olympics sought to have golf added 
to their Games but had to drop the 
idea after controversy over the pro- 
posed venue at Augusta. (AP) 

Nuggets Trade McDyess 

basketball The Denver Nug- 
gets unloaded an unhappy forward, 
Antonio McDyess, on Wednesday, 
sending him to Phoenix in a three- 
way trade that also sent Wesley 
Person, a shooting guard, from die 
Suns to Cleveland. 

The Nuggets received two firsts 
and two second-round draft picks, 
plus cash, said Hob Rudow, Per- 
son’s agent Cleveland sent a first- 
round pick to Phoenix for Person. 
The Suns packaged that pick with 
their own first- and two second- 
rounders, Rudow said. (AP) 

Seau Signs for Life 

football Junior Seau is again 
the highest paid NFL linebacker. 
The San Diego Chargers extended 
Seau’s contract until 2002 adeal that 
will pay the 28-year-old"$27.I mil- 
lion, including a S6 million signing 

The deal averages a little more 
than S4 .5 million a year. Earlier this 
year, Derrick Thomas signed a sev- 
en-year deal with Kansas City that 
averages about $4.23 millions AP) 

SWISS HIT — Petr Korda 
returning to Nicolas Escude of 
France in the first round the 
Basel Indoors event Wednes- 
day. Korda won by 6-1, 6-4, 



> , Vink *' 1 

THURSDAY. OCTOBER 2, 199 V a ( * 4 

— — — * 

And Arsenal 
Shown the 
Exit Door 


LONDON — Sampdoria and Arsen- 
al. both recent winners of European 
trophies, tumbled out of the UEFA Cup 
at the first hurdle and were joined in 
defeat by Benfica of Portugal and 
Rangers, the Scottish champion. 

In London, big-spending Arsenal 
marked a year under Arsene Wenger’s 

UEFA CupSoccik 

management with a 1-1 draw and a 2-1 
defeat on aggregate to PAOK Salo nika 
of Greece. 

The Dutch striker Dennis Bergkamp, 
whose fear of flying prevented him from 
playing in the away leg in Greece, gave 
the Gunners the lead after 22 minutes at 

Arsenal pressed hard but could not 
score again, and with two minutes to play 
Zissis Vrizas equalized for the Grades 
and propelled them into the second 

“We were not good enough in 
Greece, we were not lucky enough to- 
night, said Wenger, whose team leads 
the English Premier League. 

Benfica, a former winner of the more 
prestigious European Cup, had fired its 
coach last week. It drew, 0-0, in Lisbon 
against Bastia and went out. 1-0, on 
aggregate to the French team. Bastia 
ended the match with 10 men after its 
captain, Patrick Moreau, was sent off in 
the 88th minute. 

Sampdoria. like Arsenal a former 
winner of the Cup Winners Cap, lost 2- 
0 in Spain to Athletic Bilbao and was 
eliminated, 4-1, on aggregate. Samp- 
doria 's goalkeeper, Fabrizio Perron, 
was sent off in the 39th minute. 

In Glasgow, Rangers’ expensive 
team suffered yet another European hu- 
miliation. It lost, 2-1, to Strasbourg even 
though the French team played the last 
30 minutes with 10 men after Chris- 
rophe Kinet was sent off. Strasbourg 
won 4-2 on aggregate. 

Inter Milan cruised into the second 
round by beating Neuchatei Xamax of 
Switzerland, 2-0, for a 4-0 aggregate 

Lazio of Italy conceded a goal after 
jost 12 seconds. Later, Giuseppe Signori 
missed a penalty.' But the Rome team 
still beat Portugal’s Vitoria Guimaiaes, 
2- 1 , for a 6- 1 aggregate victory. 

Leicester City of England lost 2-0 at 
home — 4-1 on aggregate — to Atletico 
Madrid. Both clubs had a man sent off 
before Juninho, who once played for 
Middlesbrough in England, scored the 
opening goal. 

Liverpool drew, 0-0, with Celtic at 
Aiifield and went through on away goals 
after its 2-2 draw in Glasgow. 

In Birmingham, after more than three 
hours of scoreless soccer, Savo Mi- 
losevic scored in extra time to give 
Aston Villa a 1-0 victory over Bor- 

Nantes of France also went out to a 
solitary goal, losing 1-0 at home to 
Denmark's Aarhus. 

Twente Enschede of the Netherlands 
went through, 2-2, on away goals 
against Norway’s Lilies trom in a match 
that saw two penalties in the last two 

M amadou Diallo scored for 10-man 
Lilies trom in the 89th minute. But Jan 
Van Alst’s spot kick just seconds later 
won it for (he Dutch. 

At halftime in Brussels, Anderlecht 
trailed SV Salzburg. 2-0, and 6-3 over- 
all. But the Belgian team scored four 
goals in the second half to win, 7-6, on 

Croatia Zagreb, which had conceded 
four goals at home to the Swiss team 
Grasshopper, won 3-0 in the return 
match for a 9-4 aggregate score. 

Ajax Amsterdam beat Maribor of 
Slovenia, 9-1, for a 10-2 aggregate vic- 


Braves Need 
Only 2 Hits 


Patrik Berger of Liverpool, which advanced on away goals, being hounded by Celtic's Craig Burley, right. 

Batistuta: ‘Prisoner’ of Florence 

International Herald Tribune 

L ONDON — The angle is often 
acute, but the eye is sharper stilL 
On current form, Gabnel Bat- 
istuta will have overtaken every foreign 
accumulator of goals Italy has known by 
the end of October. The Argentine in 
Florence has amassed 94 goals in Sene 
A, just four short of Abel Balbo, who 
holds the record far stranieri in the land 
where scoring has always been hardest. 

I talians wrap their cloak of acclaim 
especially round strangers who consis- 
tently hit the net They revere die art 
Balbo, another Argentine, is winding 
down his career at A.S. Roma while 
Batistuta, in renaissance after a brood- 
ing 12 months, is back. 

Thirty-five goalkeepers from 25 Itali- 
an clubs know his sting, though some 
never felt a thing . He struck when they 
were unaware. 

They know, and every defender 
knows, that his right foot is most power- 
ful and die left foot and head capable. 
They know, too, that Batistuta’s potency 
increases Coward the end of a match 
when opponents lose concentration. 

In the purple of Fiorentina, “The 
Archangel Gabriel” opened this season 
with three goals against Udinese. Next, 
against Bari, he struck inside 12 
seconds, and later -from long range. 

In the San Siro, determined to out- 
shine Inter Milan’s Ronaldo, Batistuta 
twice hit the underside of the goal 
frame. Denial spurred him. From an 
angle so tight it almost forbade an at- 
tempt, he arrowed the ball beyond the 
open-mouthed goalie. 

At Empoli last Sunday, Batistuta 
made it seven goals from four starts. He 
is chasing his own Italian all-comers 
record of 15 goals from 1 1 consecutive 
Serie A contests at the start of the 
1994-5 season. 

Batistuta is a phenomenon, if oc- 
casionally a troubled one. Intellect can 
inhibit the scoring process because to 
question the logic of shooting from im- 
probable angles must complicate 
something better left to instinct 
Batistuta, undoubtedly intelligent, ig- 
nores that logic for club and, when 
chosen, country. He has outscored 
Diego Maradona for Argentina. 

Yet if he sometimes ponders the 
worth of his existence, not least on 
European club nights when he has no 
platform because the Florentine team is 
not supportive enough, it comes from 
his background. 

Batistuta is a reluctant professional. 
He was content six years ago playing for 
enjoyment while furthering his school- 
ing. He had eyes on a medical career. 

World. Soccer/ Rob Hughes 

i Petit chapeau 

• Crosswordy 

• Theater box 
is capital te 


14" Lite of 




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17 Gam us 
is Teetotalers 
90 Torso’s 
11 British baby 

33 Domini 

as Mrs. John 
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as wraps 

32 Actress 



33 Use clippers 
ss Turtle dove 
sa Genius 

(CaUguta) questions? 

it Genius 4> B8l j oll _ 

ta Teetotalers performance 

90 Torso’s ** Berg, the 

MBsteoard intellectual of 

*1 British baby Basebaj1 

bearer ea Convertibles 

23 Domini es Collected works 

is French number si Substance from 
with three 0‘s which me 

*T Ones, when universe waa 

marching created 

Solution to Puzzle of Oct 1 

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SEnnn nnno snnso 
asaa nasa aaaaa 
□□no sana 
□edejds Qfpa anna 
naaaa aanaa □□□ 
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nunna aaaa naaa 

Q0EC1E SHE 3330 

*2 Like a hermit 
54 Robin's 
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50 Genius 
03 Kind of board 
as Hotel chain 
es Litre a carpel 
■7 Associate with 

os Hot poiand 

1 it plays it 

2 Mouths, to 
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4 Classic 1896 
Alfred Jany play 


•Tidal movement 

t Upright 

ota working order 

5 Writer Delghton 
io Op-ed artist Pat 

if Expresses 
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12 Pleasant 
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92 Submissions io 

33 Brand of 

m It's outlawed 
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31 First name m 
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37 Nepalese 

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OlVnc York Tones /Edited by Will Shorts. 

That, however, takes time and study. 
It could not lift Batistuta, his mother and 
later his own family, out of relative 
hardship in Santa Fe, where he was bom 
in 1969. Soccer has that power. At 18, 
comparatively late, Batistuta was lured 
to Newell’s Old Boys in Rosario. A 
talent scout by the name of Bernardo 
Griff a, his eye as keen as Batistuta's, 
sold the teenager die dream. 

It was. inevitably, a self-seeking 
agent, Settimo Aloisio, who arranged 
Batistuta’s export, from his second club, 
Boca Juniors, to Fiorentina. Indeed, 
Aloisio did a double-deal, persuading 
the Cecchi Gorri family in Florence to 
take Batistuta and his strike partner 
Diego Lahore as a duo. 

Lahore, already in his second uni- 

said, “were the only ones who believed 
in me daring my first, difficult six 

These were months, apparently, that 
made the long study of medicine a 
yeamed-for alternative. Months in 
which colleagues ignored him and 
newspaper columnists lampooned him. 

Batistuta wears his hair long, like 
Mario Kerapes, the striker he idol- 
ized. Yet, Daniel Passarella, the Argen- 
tine national coachjssued a sergeant 
major’s diktat: Snip those locks or be 
locked out of the national squad. 

Batistuta met stubbornness with stub- 
bomness and stayed too long outside the 
Argentine selection. 

Last season, he suffered serious in- 
juries for the first time. This is remark- 
able because, at 5 foot 9 inches ( 1 meter 

Over Astros 

By Mike Downey 

tuts Anvdci Ttmn Sxrtict _ 

- 5 11 — ■■ 1 1C M 1 5 iL . 

ATLANTA — Darryl KHe of tbe< , 
Houston Astros pitched a two-hitter — ^ 
holding the defending National League r . 
champion Atlanta Braves without a bit* 
after the second inning — and lost. 

Gome 1 of this National League piayL’ 
off series went to the Braves, 2-1. otf>_ 
Tuesday, because a bases-empty home* 
run by Ryan Klesko, leading off the* 
second inning against Kile, gave the 
four-time Cy Young Award winner*' 
Greg Maddux a 2-0 lead, which was alf-. 
he needed. 

Maddux allowed seven singles and-"* 
pitched a complete gome. His most se^ 
rious challenge came in die eighth io' 1 ' 
ning. with the dangerous Jeff Bagwell at -1 
the plate and the tying run on second 7 * 
base. Maddux struck out Bagwell with a. » 
wicked, full-count change-up. . ''y 
Atlanta’s catcher, Eddie Perez, waS’i 
asked, “ Was that unhittable?” 

‘ ‘Untouchable. 1 1 he replied. 

On the previous pitch. Bob Ahreu — 
who led off the eighth with a pinch-single - 
— stole second. Maddux was busy witff* 
Bagwell setting him up for the strikeout* 1 
pitch with an 86 mile-an-hour fastball/’ 
about as hard as he threw all day. 

He had told Perez exactly what he*’ 
planned to do. The change-up camfi- 
inside to Bagwell, who swung clumsUy_ 
as the ball dropped at his feet 
Bagwell said it was the only inside 
pitch Maddux threw him all day. * 
“When you see it coming inside, yoir 
think heater,*’ Bagwell said. “Then the 
bottom drops out of it, and we’re out of 
the inning.” ._ J, 

The studious Maddux — who bad aifc * 
unfinished crossword puzzlein his lock^ 
er — made a mental note that Bagwell' 
had made outs on first-pitch fastballs hi§ ); 
first two times up. l- ; 

Maddux doesn’t miss much. He kept'] 
the “KillerBV’ — Craig Biggio.DereJ^,- 
Bell and Bagwell — at the top of Hous- j 
ton’s batting order hitless (0 for 12). , nt 
As usual, the pitcher downplayed the' 
importance of anything he did. 

Hp.sajd tilings like, “YtOUigot to-gejtl 

■is /,'<> li ith \ 

75 ) , he is no Hercules in the No. 9 shirt.' all nine guy soul I mean, the pitcher 
aposition where the buffeting was so bad iwo hifsfqday,*’ . . ■>: . . 

that the much taller Marco Van Basten Kile, indeed, contributed to' his owq,» 

versity year, studying economics, was 
the main attraction. He came with a 
video of more than 100 goals, scored 
with a virtuoso's vision and touch. 

Lattore came from a close middle- 
class Baenos Aires family. He seemed 
made for the mantle of the New Diego, 
Ihe “Good Diego,” as Argentina’s El 
Grafico magazine dubbed him. 

Alas, frail either in body or, perhaps 
ultimately, in spirit, Lattore never made 
a mark in Florence. He was loaned our to 
Swiss clubs, back to Boca for a summer, 
more recently to Tenerife in Spain. Still 
an undeniably hypnotic talent, but by 
□ow left in the wake of “Batigol.” 

Relentless has been the strike rate of 
Batistuta’s six seasons in front of the 
adoring followers of the Curva Fiesole, 
Fioreutma’s partisan and demanding 
semicircle of soccer obsessives. 

“The boys on the Fiesole.” he once 

was crippled into early retirement. 

Last year, Batistuta lost his enthu- 
siasm. He ached for a move, but that was 
more than Vittorio Cecchi Gorri dared 
permit, even though, acoupleof seasons 
ago. Real Madrid offered $18 million. 

“Commercially, it is tempting,” 
Cecchi Goni said. “But Batistuta is the 
emblem of Florence, almost as if he 
were the son of Lorenzo dei Medici.” 

So, a Florentine “prisoner” he re- 
mains. The captain now, selflessly mak- 
ing runs for others, moving back to 
defend, still uncannily eluding markers 
to find space to score. 

’Tm still at Fiorentina,” he said last 
week. “So, whatever I do carries less 
weight than at Inter or Barcelona.” 

Inter and Barca had been bidders last 
season, and some suggested Manchester 
United, the English champion, should 
have been. United, desperately seeking 
a big-match striker, has just announced 
record profits of $44 million. Batistuta, 
meanwhile, craves a place on the 
biggest stage in his sport. 

Rob Hughes is on the staff of The 
Times of London. 

cause with two singles, knocking in th®, 
only Astro run. _ 

His catcher, Tony Eusebio, got a oner,.- 
out base hit in die fifth, then startled-, 
Maddux and the Braves by stealing Sy- 
base, the first of a career spanning 864i* 
nt-bats. Eusebio took third on a groun- 
dout, then scored when Kile, a .12V 
hitter, lined a 2-0 pitch into center field-; 
off perhaps the best pitcher in basebalC, 

“I got lucky. The ball fell on ray' 
bat,” Kile said. i» 

Maddux demurred, saying, “He was-.y 
being nice. He got me.” „•*' 

That run cut Atlanta’s lead in half, 

2 - 1 . 

Kenny Lofton had led off the first,, 
inning against Kile by doubling, advan-i , 
cing on a fly to right and scoring on 
Chipper Jones’s sacrifice fly to left. It was*, 
exactly the son of “little ball” Kile had 
said he feared most from the Braves. * 
There was nothing little about-, 
Klesko’s first-pitch homer in the secondi 
inning, which flew 391 feet (119 me-^ 
ters) over the fence in right field ^ 

Klesko's tippy-toe Babe Ruth trot a tel 
up a sizable portion of the 2-hour, 15£ 
minute game. ■» 

. . . 

, -•*-'» .**<»_" . 

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PAGE 19 


utive Homers 
ankees, 8-6 

By Jack Cnrty 

^ptYork Times Service 

NEW YORK — The first baseball 
somMmto fte opper ded: in right field 

ana tied tnescnra TW 

SSL'S*!-!*" «> 

chiim into a racking baseball setting. 

Fans count not believe what they had 
witnessed . 7 — back-to-back-to-back 
home runs by Tim Raines, Derek Jeter 
apd PauimfeE. Who could blame 
than? It had never beat done in any 
^ppstseason game. 

B Vw2j S'*?** defending 

Wond Senes champions overcome an 
apguisbed and ineffective pitching ef- 
fort by David Cone, wnosuffered 
through a five-nm first inning. But his 
teammates never Jet that sluggish start 
stop them in Game 1 of the American 
League division series with Cleveland. 

. They stayed relaxed as Ramiro Men- 
dez^ replaced Cone in the fourth and 
spfled the Indians. They stayed ready 
when Orel Hershiser and Frig Plunk 
mimicked Cone's ineffectiveness. And 
they reacted with five runs of their own 
during a memorable sixth inning to re- 
bound from a 6-1 deficit and steal a 
thrilling 8-6 victory. 

j F**It's incredible," said a grateful 
r Cone. “What a game. What an mcred- 
i Ible game. I was shaky. I rave up five 
runs, and we came back. What an in- 
credible victory.” 

.With the Indians leading 6-4, Rey 
Sanchez on first base after his run-scor- 
ing single and two out in the sixth, Plunk 
ti?ed to get a fbrkball mi a 2-1 count past 
Raines, who drilled it .for a towering 
home run into the upper deck. Raines's 
shot traveled 401 fek, and the Yankees 
had tied the game, 6-6. The fens re- 

mained on their feet until Raines re- 
sponded by waving Ms helmet in a cur- 
tain rail, his first as a Yankee. 

Jeter was the first Yankee to tap fists 
with Raines, and then he duplicated his 
teammate's feat by swatting the ball into 
fee first few rows of the left field seats 
on an 0-2 fastball to pot New York in 
front, 7-6. The pitch was inside and Jeter 
barely extended his arms, but fee ball 
journeyed 375 feet. 

“I don’t hit many, so I’m excited,” 
Jeter said. “I think the fens blew it 

After fee left-hander Patti Assen- 
macher replaced Plunk. O'Neill reached 
out on an 0-2 fastball and crushed it over 
fee black 408-foot sign in center to give 
die Yankees an 8-6 lead feat erased 
Cone’s pathetic performance and al- 
lowed the team to feel a little like 1996. 

“With a five-game series, there 
would have beat a lot of pressure com- 

OT^eQl said. ‘ 'This^was a^huge win." 

Cone desperately wanted to pitch 
Tuesday night's opener even though he 
had missed 33 days of the season start- 
ing in mid-August wife renrfapitfo in his 
right shoulder and admitted feat he was 
not at foil strength. 

After Cone was scorched for six 
earned runs on seven hits while walking 
two, striking out two, throwing a wild 
pilch and hitting one batter in 314 in- 
nings, Mendoza replaced him in fee 
fourth and retired 10 of 11 battezs. 

While Mendoza silenced the Indians, 
fee Yanks crept back with one ran in the 
fourth, one in fee fifth and five in the 
fateful sixth. Mike Stanton and Jeff Nel- 
son followed Mendoza, and Mariano 
Rivera notched the last four outs as fee 
bullpen pitched 596 scoreless inniqgs to 
save Cone. 

Sandy Alomar’s three-run homer cli- 
maxed a five-nm first in which Cone 

Paul O'Neill, facing camera, being greeted by Derek Jeter after the last of 
three consecutive Yankee home runs capped a rally to beat the Indians. 

allowed one run to score on a wild pitch, 
had no power on his fastball and needed 
31 pitches to secure three outs. 

. The tortuous inning helped to ensure 
feat it would be a short night for Cone, 
who threw a total of 63 pitches and was 
in the dugout for good before the fourth 
inning ended. While fee Yankees were 

elated about the come- from- behind tri- 
umph, they might have to reconsider 
whether Cone will be able to pitch a 
possible Game 5. 

“I put os in a hole,” said Cone, who 
said his wobbly arm felt fine. “I’m very 
ludey to be standing here talking on fee 
winning side of it.” 

Renteria’s Clutch Hit 
Lifts Marlins to Victory 

By William Gildea 

Washington Post Servkx , 

MIAMI — Edgar Renteria delivered 
an opposite-field single to right wife the 
bases loaded and two outs in fee ninth 
inning to give the Florida Marlins a 2-1 
victory overfee San Francisco Giants in 
fee opening game of their best-of-five 
National League first-round series at 
Pro Player Stadium. 

The hit, Renteria's second of Tues- 
day night’s game, came off a reliever, 
Roberto Hernandez, and made a loser of 
Julian Tavarez. It came after the Mar- 
lins' right-hander Kevin Brown and die 
Giants' left-hander Kirk Rueter both 
turned in stellar performances for seven 
inning s to set UD fee dr amati c, finish . 

Renteria, a 22-year-old Colombian 
who had a dub-leading 171 hits during 
the regular season, was mobbed by 
teammates rushing from their dugout to 

It was the seventh time this season 
feat Renteria had delivered a game- 
winning hit in the Marlins’ last turn at 
bat, and it gave fee team a victory in fee 
first playoff gamfe in fee Martins’ five- 
year history. 

Brown and Rueter each struck out 
five and allowed four hits. Each gave up 
a solo home run in fee seventh inning. 

Bill Mueller, who hit only seven 
home runs all season, gave fee Giants a 
short-lived lead in the top of fee seventh 
wife his first homer since Aug. 31. Thea 
Charles Johnson, the Marlins’ catcher, 
tied fee game with a home run in fee 
bottom of fee inning. 

Both clubs went to their bullpens, and 
Dennis Cook, a Marlins* left-hander, 
retired the six batters he faced to gain the 

The Marlins threatened in fee sixth 
and eighth inning s , but finally set up the 
outcome a gainst Tavarez in the ninth. 
Jeff Conine, an original Marlin, opened 

the inning with asingle. Tavarez then hit 
Johnson. Hernandez worked the count 
to 2-2 against Craig Counsell, who 
failed to bunt on two pitches. But Jim 
Leyland, the Florida manager, kept the 
bunt oa, and Counsel! succeeded in 
dropping a sacrifice along fee third-base 

Jim Eteeoreich, pinch-hitting, was 
walked intentionally to load the bases. 
Wife die infield drawn in, Devon White 
hit sharply to Jeff Kern, the second 
baseman, who threw home to force Con- 
ine. That left matters up to Renteria, 
who had a single earlier and had hit the 
hall hard two other times. 

Hernandez got behind in fee count, 2- 
0. Renteria took a strike. Then he saw a 
pitch he liked and drove it between 
second and first, giving the Marlins a 
victory in their final at-bat for the 25th 
time this season. 

Tavarez needed a double-play ground 
ball to get out of fee eighth inning, but 
Dusty Baker, fee Giants' manager, said 
be didn’t hesitate using him in fee ninth. 

“He was throwing the ball good so 
we decided to go wife him,” Baker said. 
"He hit Johnson, which set up fee whole 
inning . Kirk did his job. But everybody 
knows they’re a tough ball club and a 
veiy tough club in their own park. ” 

Leyland has been taking medication 
for a case of walking pneumonia, but 
said he would have felt a lot worse had 
the Marlins lost. 

‘ 'It was a great ball game, great pitch- 
ing on both sides," he said. “It was a 
well-executed bunt wife two strikes by 
Craig Counsell. That’s tough to do. It 
was just a great playoff game. Renteria, 
caught a break when fee pitcher got 
behind 2-0. 

“Thar puts a little extra pressure on 
the pitcher, he has to lay one in there. 
We’ve had a lot of wins like that during 
the year. You don’t expect that in the 
playoffs, but it happened today.” 

Orioles Go With No-Name Eighties 

Washington Past Sennet 

S _.__ * i c Vantage Point /Thomas Boswell 

EATTLE — Some people are fas- 2 

intimidating pitcher ever. “Randy has has worked three times against J 
The playoff same at fee King- JL*—**- a „.t.i .-a. 


S EATTLE — Some people are fas- 
cinated by baseball all their lives. 
The playoff game at fee King- 
dome oa Wednesday was a wonderful 
illustration why. Nothing akin to what 
hippesed in Game 1 could occur in any 
ofeer sport Nothing so gloriously 
loony, so counterintuitive, so inside- the- 
inside, would even be contemplated. 

-Every sport has its own special stuff 
that gives yon a tingle. Baseball has 
Dfevty Johnson, his job as the Orioles’ 
manager in jeopardy, having fee guts, or 
maybe just fee hubris, to bench four of 
his best players in the biggest game of 
fee season. 

Why? Becaose he thinks savvy 
strategy, plotted over a whole season, 
c in defeat a legend called fee Big Unit 
He may be betting his career in Bal- 
timore on it. 

;“I know Tm leaving myself wide 
open to get my neck cut off,” Johnson 
said Tuesday. “But if we lose, I’m 
going to get my neck cut off anyway.” 

. Randy Johnson is fee modem equiv- 
faleat of Walter Johnson, Bob Feller or 

Vantage Point / Thomas Boswell 

intimidating pitcher ever. “Randy has 
as good pure staff as anybody who has 
stepped on a major league mound,’ ’ said 
Brady Anderson, “ms fastball is dif- 
ferent You have to experience it” 

So, how are the Orioles responding to 
this challenge? For openers, they’ll 
bench Robby Alomar, Rafael Palmeiro, 
Harold Baines and B J. Sufboff. 

“I was leaning another way,” said 

Davey Johnson, “but " 

What fee hah. It’s more fun this 

A lomar and Palmeiro, both all- 
stars this season, will be re- 
placed by Jeff Rebonlet and 
Jerome Walton, a pair of career utility 
men. Rebouiet hit .237. Walton, hurt 
often, has nine RBL Eric Davis is still 
.underweight after cancer surgery and 
struck out four times in a game last 
week. Jeffrey Hammonds will sub for 
Baines, who has 1,425 RBL 
Everyone who Loves baseball be- 
lieves feat attention to the telling detail 

> . kHridiculous 43-6 the last taresL- pays rewrds. The more yon ta»ow 
/XS* bL lOoStes ln bom ^ 

f < t60 kph) sidearm heat, may be the most .attic 

has worked three times against Johnson 
in three meetings. Yet fee Orioles’ battle 
plan isn't just to start as many right- 
handed hitlers as possible. 

That’s part of it. Johnson terrifies 
many lefties and sends some, specif- 
ically Palmeiro, into slumps. But the 
lineup is more subtle than that 
Lefty Anderson is fee ideal leadoff 
man against Johnson. He stands on top 
of theplate. He’d rather be hit by a pitch 
(18 times) than flinch an inch. .. 

Following Anderson are ' ‘eight 
righties who have been assembled with 
a common trait in mind. All except Cal 
Ripken are fastball hitters. Throw a 
good low change-up to Geronimo Ber- 
roa. Walton. Davis or Chris Hoiles and 
they're likely to screw themselves into 
fee ground and miss it by a foot Throw 
a slow curve to Rebouiet, Hammonds or 
Mike Bordick and they are liable to 
chase it even if it bounces. 

But Randy Johnson doesn't have a 
change-up, a slow curve or even a fork- 
ball. He has a fastball and a slider. You 
take your guess. And, every time, you 
try to bit be ball off the wall or over it 
Two-thirds of the runs off Johnson 
have come oa 20 home runs. That’s the 
Oriofes' game plan: Be patient, don’t 
chase high fastballs and swing hard. 




amU an too 000—4 11 0 

navYait on ns ook-s 11 0 

Henfrfaes Mormon (5). Plunk (5), 
Assenmodier (61 M. Jockson (7) and S. 
Alomar Cone. Mendoza (4), Stanton 71, 
Netfan (71 M. Rivera (8) and GknnS. 
IV— Mendazo [-a L— Plonk 0-1. Sv-M. 
raven 0). HRs— Qevetand. S. Alomar til. 
New Ybrit (Macs Cl ). Jeter (1 ). ONeto (1). T. 
Marina 01- 

(NMYMt had* series 1-0 


Houston 000 no 000—1 7 1 

Atlanta l TO 000 Kx— 2 Z • 

_ KB6, W. springer IB); T. Mortal :(8 and . 
EuMbkrGJWaddui and EdtLPcnz. W-O. 
Moddux 1-4. J_— Kite 0-1. .HR— Atlanta 

(Atlanta Ms varies 1-0) 

Sen FraKtsca 0<M 000 100-1 4 0 

Ftaridn 000 Ott 101-2 7 0 

Ruetec Tam® (8L R. Hernandez (9) and 
8. Johnson KJ. Brown, Cook (81 and C. 
Johnson W—Cook ML L — Ttwarez 0-1. 
HRs— Sen Frandsoa MueOer (11. Fkntda. C. 
Johnson [1). 

(Fkrida leads ssries 1 - 0 ) 

Japanese Leagues 










































x-efindred league tltte 













— . 


6 S 











Date! 59 67 I M9 14V6 

Nippon Ham 62 71 1 Abb 15 

Lotto 55 70 2 ,441 18 



OwnlcM 7, Yakut! 5 
HoRShbi K Hiroshima 1 

Seibu 12,0*4 
Nippon Ham 3, Lotte 2 




CSKA Moscow 71, Mocariri Tel Aviv 63 

Porlfaa n Belgrade 7% Hapoel Jonaotetn S9 


TiaSASWi Y»- iw muuio 

TlmhNiw 773-8 (50 oven) 

New Zealand: 233-9 (50 oven) 



Atax Amsterdam ». Marlbor Teutonic l 
Ajax advanced on 10-2 aggregate 
AkmlaVktdkavkazl, MTKFC Budapest 1 
MTK FC odwmcedon 4-1 ogg i tg n te 
Andcriedit 4 Sotzburg 2 
An dertetfrt advanced on 7-6 aggregate 
Anorttroels Famagusta 1, Karlsruhe 1 
Karlsruhe otfwinasd on 3-2 aggregate 
Arsenal I, PAOK Srionica 1 
PADK advened on 2-1 aggregate 

Aston Vital, Bordeaux 0 
Aston Vki advanced on 1-0 aggregate 
AWettc Bilbao Z Sampdaria of Genoa 0 
Athletic advanced an 4-1 aggrega te 

Auxene ft Deporthro de La Coruna Q 
Atumm advanced on 2-1 aggregate 
Baslta advanced an 1-4 aggregate 
Braga 2, Vlleae Arnhem 0 
Braga advanced an 3-2 aggregate 
Lyon advanced on 7-3 aggregate 
Club Brugge 3 Bettor Jerusalem a 
Club Biugge advanced an 4-2 oggngale 
Dinamo TOBsi 1. MazyrO 
Dinamo advanced on 2-1 aggregate 
FensrtmhceZ Steauo BodraresM 
FenstMlm advanced an 2- ! aggravate 
FerenemratZ OR Crete 1 
OF1 Crete advanced on 4-2 aggregate 
Grasshoppers ZuTfcii (V Croatia Zagreb 5 
Croatia advanced on 94 aggragote 
Halduk SpfltZ Scholto 04 3 
SchaHoe advanaed on 5-2 aggragote 
Hapoel Petah-TIckyp 1, Rapid Vienna 1 . 

. Rapid Vtonnp.odjianqed ah 2-1 aggregate 
* Lazio oTRumez vnmtaGuliimies 1 
Lazfo of Rams advanced on 4-1 tfegratofe 
LekestaraAtleHcode Madrid 2 I - 
AHettao Madrid advanced an 4-1 dggreBate 
Ultestram 1. Twente Enschede 2 
Twente advanced 2-1 on away goals 
Liverpool a Glasgow Cette 0 
Liverpool advanced 2-0 on away gods 
Metz 4, ExcetstorMausran 1 
Metz advanced on 6-1 aggregate 
I860 Munich & Jazz t 
I860 whence*) on 7-1 aggregate 
Nantes ta Aarhus 1 
Aarhus advanced on 3-2 aggregate 
Neuchatel Xamax (V Wemazlonole Mlkm 2 
Intomazionale advanced on 4-0 aggregate 
(kcbm l. Rotor Volgograd* 

Volgograd advanced on 6-1 aggregate 
Glasgow Rang era J, Strasbourg 2 
Strasbourg advanced an 4-2 aggregate • 
Skotifo 1, VaDodond 0 
ValodoM advanced on 2-1 aggregate 
Spartak Moscow Z Sion 2 
Sportat. advanced on 3-2 aggregate 
VIL Bochum 5, Trutnonspor3 
VR. Bochum advanced on 6-5 aggregate 
Udbtese 1 Whtzew Lodz 0 
UrBnese advanced an 3-1 aggregate 



Chicago— A greed to terras wltti 1 B Frank 
Thomas on 4-ysar contract extension. Fired 
Terry Bevtngton, manager. 

TEXAS-Sant RHP TenyOarit LHP Bryan 
EvetsgenL C Henry Mercedes OF Alez Diaz, 
OF Marc Sagmoen and OF Ml te Sbn ms out- 
right to OWoJtoma CJiy, AA. 


MONTREAL— Aetaasad RHP Lee Smith. 
Announced 3B Hensley Meutens tin refused 
outright asstgrenent and became free agent 
Philadelphia— F ired joe Mgr* bulpen 

C00Ch - BAMmVJULL ' 

oslando— S igned G Rick Brunson. 



NFL-Retnstated PhsacMphia Eagles. S . 
.Matf Steyens from his 4-game suspension, i 
" NEW EMCuUD-StgitarCB Steve Lofton. 1 
RalefaedCB Scooter McGiudcr. 

NEW ORLEANS-Traded WR Daryl Hobbs 
to Seattle far imdtKtMod JWB muff choice. 

H.Y. giants— P ut WR Ike HBfaid and LB 
Pete Monty on itfured reserve. Signed RB 
EMC Pegrom and C Bryan S t alton b eig. 
Waived CB Kory Btodcwefl from practice 
squad. , 

OAKLAND— Watvcd DL Crap Townsend. 
Philadelphia— R e-signed WR Justin Ar- 
mour. Released PK Loony CaDcctiki. 

ST.LOUts-Sigaad WR Matcotm Floyd. Re- 
leased WR Janttaine Ross. 

san dieso— S loped LB Junior Seau to 6- 
year contract extension. 


st/FFALO— Signed LW Mirastar Satan to 1- 
year contract. 

Carolina— A ssigned F Bates BattogBa, F 
Jeff DanleKD Nolan Pratt and G Mike Foun- 
totn |o New Haven. AHLt G Pot Jabkxiski to 
Ctevetanit IHL- C Slew Martins to Chicago, 

chicaoo— S ent RW Kevin MBIer to Inrfl- 

los angeles— S igned G Jamie Storr to 1- 






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•stator to eeweptm, w tern I ** *BSr 
tw to teywW I ^ . I. 








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- Emtbtainmeivt 

Appears ewzy Wednesday in 
The Intermarket-To adrortw contact 

in our London office 
TA: +441 71 4300329 
Fax: +44 171 420 0338 



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PAGE 20 



Pilots’ Reunion 

went to the reunion of 
my World War II Marine 
Corps fighter squadron in 
New Bern, North Carolina, 
last week. Most of us were 
still in fine fettle and. if 
asked, would 
have gladly 
shot down any 
Japanese planes 
that were still 
thinkin g of at- 
tacking Pearl 

The reunion 

was panicu- Bucbwald 
lady nostalgic 
because in order for us io get to 
New Bern we had to fly in 
planes that appeared to have 
been built in World War DL 
The airline company servicing 
New Bern was using nop 
planes that made the ones cnom 
oar fighter squadron days look 
like the space shuttle. 


As we sat around the Ready 
Room in the Holiday Inn, we 
discussed what World War n 
would have been like if the 
people behind today's airline 
counters had been in charge 

Berlin Toms Down 
Millennium Clock 

Agence France-Presse 

PARIS — A clock that was 
counting the seconds left on til 
the year 2000 outside the 
Pompidou arts center and that 
was dismantled because of 
renovation work, is still look- 
ing for a new home after Ber- 
lin turned down an offer to set 
it up there. 

The clock designers, Fran- 
cois Seal! and Alain Domin- 
go. have asked the officials at 
the Pompidou to put the clock 
back on the plaza outside the 
center where it stood until 
April last year. 

of the VMF-U3's combat 

Frank Drury said, “Sup- 
pose we got the word that the 
Japanese were launching a 
surprise attack on Cherry 
Point? We’d say to the airline 
clerk at the New Bern airport, 
‘We have to have a squadron 
of fighter planes to avenge 
this day of infamy/ " 

The clerk would ask: "Do 
you have any luggage?” 

“Here’s my driver's li- 
cense. Just give me a plane/' 

“Your name doesn't see to 
be in our computer, sir.” 

“Of course it's in the com- 
puter. I made the reservation 
last month. Now hurry, I have 
to scramble so I can get above 
them when they come in.’’ 


“Did you want the special 
nightly fare, the 'no-frills' as 
we call it, where you can't 
land in Charlotte, or did you 
want to go business class with 
our free pretzel service?” 

”1 don’t care as long as I 
can shoot down a Zero.” 

“I can give you a fighter 
plane, but you'll have to 
change in Atlanta. Georgia." 


‘ ‘Because everyone changes 
in Atlanta.” 

“O.K.,just let me get in the 
sky so I can bring down one of 
these SOBs.” 


“Did you pack your own 

“At a time like this what 
difference does it make? Our 
only mission is to shoot down 
enemy pilots.” 

“My computer is down, 
sir. 1 am unable to allocate a 
plane to you after all.” 

“But we’re about to be at- 
tacked and we have to defend- 

“Just take a seat over there 
and we'll route you via Dal- 
las. Tora, Torn. Tora.” 

Catharsis and the Rebirth of Culture in Sarajevo 

By Alan Riding 

New York Times Service 

S ARAJEVO, Bosnia-Herzegovina — it 
was logical that Bosnia’s first postwar 
movie should be about the war that savaged 
this country for four years. Yet barely 18 
months offer an uneasy peace was imposed 
by NATO, it seemed almost too soon to ask 
people here to relive the war as fiction. 

The movie. “Perfect Circle,” does not 
presume to tell the whole story of the conflict, 
opting instead to recount just 
one slice of life under siege 
through the experiences of a 
disheveled and boozy poet 
who gets his wife and daugh- 
ter out of Sarajevo only to 
find himself looking after 
two orphaned brothers and a 

wounded dog. 

But the accompanying images of civilians 
killed by Bosnian Serb shells, of burning 
buildings and of never-ending fear released a 
rush of painful memories for many of the 
3.000 Sarajevans attending the film’s 
premiere in an open-air theater here this 
month. Moments of black humor prompted 
roars of laughter. But more often there were 
rears. It was too difficult to distinguish art 
from life. 

The film ‘Perfect 
Circle’ is the first 
Bosnian portrayal 
of the conflict. 

should have a prominent place in this 
city's reconstruction. 

Their point is simple. Before the 
fighting erupted in April 1 992, culture 
flourished in a city d. was a model of 
coexistence among Muslims, Serbs 
and Croats. Then, during the war. Sa- 
rajevo’s multiethnic identity was 
eroded as Serbs and Croats fled and 
Muslim villagers sought refuge here. 
Now, these artists argue, culture offers 
the best hope of reviving Sarajevo’s 
tradition as an open 
and tolerant city. Yet 
strangely, culture is 
struggling more now 
than during the war. 
when the academies 
of art, music and 
drama refused to 
close their doors and 

music and theater performances were 
regularly held in shelters and cellars. 

Some foreign artists also braved the 
shelling: Zubin Mehta conducted 
Mozart’s Requiem in the ruins of the 
National Library, and Susan Son tag 
directed a production of Beckett’s 
* ‘Waiting for Godot. ’ ’ 

The Obala An Center, founded in 1984 as 
an experimental theater group, was partic- 




A scene from Ademir Kenovic’s “Perfect Circle," which opened the SarajevofestivaL 

“My purpose was not to make people ularly active. Its new headquarters was de- 
imeasy.” said Ademir Kenovic, 47. the di- strayed by Serbs’ artillery fire in May 1992, 
rector, who was among the few artists and ’ W! J =--* * 

intellectuals who remained in Sarajevo 

throughout the war. “I’d like to think the film 
can serve as a kind of catharsis. It can help 
people sort out their feelings. In place of the 
amazing hectic confusion in their heads, 
people can begin to give certain shape to their 

Abroad, the film may well disturb movie- 
goers in a different way, reminding them of 
how the West watched Sarajevo's passage 
through martyrdom. There are two other 
movies about the war, “Welcome to Sa- 
rajevo' ’ (British-American) and ' ‘Comanche 
Territory’ ’ (Spanish), but Western journalists 
are the main protagonists in both. In contrast, 
“Perfect Circle” is the first authentically 
Bosnian portrayal of the conflict. 

Yet perhaps the film’s most important role 
is to announce the rebirth of Bosnia's tiny 
movie industry. And as such, it has come to 
reinforce the conviction of Sarajevo's re- 
duced but resolute artistic community that in 
Sarajevo culture — music, the visual arts, 
theater and literature as well as cinema — 

but its director, Mirsad Purivatra, organized 
“war cinema” — video screenings of new 
films smuggled in from abroad — as well as 
the first Sarajevo Film Festival, held in 1995 
in a theater near the front line. The center also 
sponsored shows of artists* installati ons in an 
outdoor passage shielded from snipers. 

But when the siege of Sarajevo ended in 
February 1996, culture suddenly became 
less important than finding homes for 
refugees, restoring water and electricity sup- 
plies and modernizing the Bosnian Army. 

“During the war, culture was an expression bassoons, trumpets or horns. There is only 
of resistance,” said Sadudin Musa bego vie, one very elderly flute player. This is not an 
the dean of the Academy of Art “Now, the orchestra.’ ’ 

In the world of music, the problem is even 
more evident. Before 1992, Sarajevo's three 
orchestras employed 300 professional mu- 
sicians, but most left — and seven were 
killed — during the war. Now only the 
Sarajevo Philharmonic Orchestra survives, 
forced to bolster hs 40 musicians by hiring 
instrumentalists from Slovenia and Croatia. 
Before the war, Emir Nuhanovic was its 
principal clarinetist; today he is also its chief 
conductor and general manager. 

“The orchestra is indeed in very bad 
shape,” a Paris-based conductor, Gary 
Brain, wrote in a report to Unesco. “ft has no 
artistic director of any kind. As an orchestra, 
it is incomplete in that there are no oboes. 

country is destroyed, industry is destroyed 
and culture is marginalized.” 

For the moment, even with help from die 
Soros Foundation, the United Nations Edu- 
cational Scientific and Cultural Organiza- 
tion and several governments, there are 
simply not enough artists and teachers left in 
Sarajevo to sustain a cultural renaissance. 
Many fled during the war and few have 

Nuhanovic struggles to keep things going. 
“The biggest problem is the lack of mu- 
sicians,” tie said. "We can get them from 
abroad but we don ’t have enough money. We 
can’t even pay salaries. I get money for a 
concert and I play the concert, but I don’t 
know when the next concert will be.” 

Osman-Faruk Sijaric. the dean of the Mu- 
sic Academy, noted that he kept the school 
open throughout the war. “Some days no one 

showed up, but I came every day;” he said, 
show ing a visitor a shell hole in the concert 
room that has been left as a war -memento. 
The number of students fell from 350 to 
around SO. anti teachers from 80 to 25; now 
the school has 200 students and 40 teachers, 
half of them part-time. 

With most other older artists still in exile, 
the field has now opened up for an entirely 
new generation of men and women in their 
twenties, some of whom, like Seric Nebojsa- - 
Soba, spent four years as soldiers, “Before 
the war, art here was very conservative,” he 
said at a rotating exhibition organized by the 
Soros Center for Contemporary Art. "Now.’ 
there are lots of installations, performances 

and video work.” 

Some of this work addresses the legacy of ' 
war. bur many young artists seem eager to- 
look forward.’ No one has money to buy art • 
and that the city's 12 prewar galleries have 
been reduced to just four. “But tittle's great 
enthusiasm.” said Dunja Blaze vie, who dir- 
ects the local Soros art center. “Over 200 ; 
artists applied to he pan of this exhibition. - 
And you know, even people from the neigh- ' 
borhood come to see it. They poke their heads 
in and ask: * What *s going on?’ The important . 
thing is that something's going on." 





. I 

Changing Times: Fur Industry Is Riding High Again 

By Jennifer Steinhauer 

New York Tunes Service 

N EW YORK — Perhaps it started 
in the spring, when the fashion 
model Naomi Campbell, who once 
posed nude for an advertisement that 
read “I'd rather go naked than wear 
fur," strolled down the Fendi runway 
draped in a sable-lined coat from the 
Italian fashion house. Or maybe it was 
this fall when all the important Amer- 
ican retail fashion directors an- 
nounced that they were buying 
something with fur. But what surely 
sealed it was the September issue of 
Vogue, whose cover featured a baby- 
blue Mongolian lamb jacket. 

Fashion is once again placing its 
bets on fur, so recently a pariah in the 

Fashion magazines have sold more 
pages advertising fur this fall than 
they have in recent memory. Vogue 
sold 28 pages of fur ads for its fall 
issues, the most in a decade, said its 
publisher. Ronald A. Galoni. At 
Harper’s Bazaar, fall fur ads for 1997 
are up 87 percent from last year and 
are also at a 10-year high. 

In the September issue of W 
magazine, the fashion directors of 
Neiman Marcus, Nordstrom, Saks 
Fifth Avenue. Bergdorf Goodman. 
Bloomingdale's and Barneys New 
York all praised fur — the First such 
group hug in years. 

And maybe most striking, many 
more designers, often up-and-comers. 
now use fur in their collections, and in 
dozens of new ways. Indeed, 42 de- 
signers worked with fur in 1985, 
while nearly 160 do today, said 
Stephanie Kenyon, spokeswoman for 
the Fur Information Council. And 
they make far more than coats. 

Fur is now used as trim on suits, 
woven through evening gowns and 
fashioned into handbags. The design- 
er Michael Kars even sent a nunk 
hooded sweatshirt down the runway 
last spring. 

The rebirth of the fur business 
traces its roots to an odd confluence of 
circumstances, from a stronger econ- 

omy and an expanding 
number of affluent people 
to growing annoyance 
with the tactics of anti-fur 
protesters to a mercurial 
swing in fashion and life 
styles, both of which have 
moved steadily from sim- 
plicity to conspicuous 

To be sure, those who 
stand firmly against fur 
are enraged about the 
fashion industty’s new 
embrace. “Fur is not 
back,” insisted Ingrid 
Newkirk, president of 
People for the Ethical 
Treatment of Animals. 
“We are pretty flabber- 
gasted that the fashion 
press has picked up on the 
fur industry's constant 
barrage/ ’ 

The emergence of new 
designers can be credited 
almost entirely io the fur 
industry itself, which 
spent millions of dollars 
reaching out to them, 
teaching them how to 
work with fur, modernize 
dowdy looks and con- 
vince the trend-obsessed 

Karl RinholamtiulV N**i» Ydfi Tl 

The songwriter Carol Connors in white mink. 


press that fur is once again hip. 

The fashion press is an essential 
part of the equation: It gives the green 
light on trends to retailers, who in turn 
buy from designers, who then buy 
advertisements in the fashion press. 
And all these players seem deter- 
mined to bring back fur from its very 
public downfall at the beginning of 
the decade, when fur-draped matrons 
were doused with paint as they 
emerged from Macy's. 

Already, fur sales in the United 
Slates have crept back from a 1991 
low of $987 million, to $1.25 billion 
last year. Though that is far below the 
1987 peak of $ 1 .8 billion, retailers are 
confident that a rebound is under 

“1 started to see the handwriting on 
the wall in the summer of 1 996, * ’ said 

Wanda Presburger, president of Som- 
per Furs in Beverly Hills, California. 
“Clients started asking me to clean 
furs that they haven't had cleaned In a 
few years. They also started asking, 
‘What's new?’ ” She said her sales in 
1996 were $1.6 million, a 20 percent 
increase from the previous year. 

“It is absolutely tremendous,” said 
Doyle Hoyer, president of Hoyer’s 
Glasgow Ltd. in Fort Madison, Iowa 
“I was up 18 percent last year over 
1995. and the trend looks the same for 
this year." 

Like cigars, large vehicles and red 
meat, fur may be on the brink of 
returning to the fold of socially ac- 
ceptable indulgences as many 
wealthy consumers brush off early 
1990s taboos in favor of flaunting 
their good fortune. 

“Fashion is simply less drawn to 

the moral strictures that 
drove fur out,” said 
Richard Martin, the cura- 
tor of the Costume Institute 
at the Metropolitan Mu- 
seum of Ail “In the late 
1980s, people avoided 
stiletto heels out of a sense 
of prudence and morality, 
and it was the same thing 
with fur. But those forces 
are certainly waning now. 
There is a certain cultural 
sense now that if it feels 
good, wear it” 

Debbie Porter, a sales 
clerk in Morrison, Illinois, 
bought her first fur coat six 
years ago but did not dare 
wear it too often for fear of 
confrontations with anti- 
fur protesters. “I would 
never wear it in an air- 
port.” she said. “That was 
just asking for trouble." 

But lately she has 
draped herself in her ankle- 
length mink to go every- 
where from dinner to the 
grocery store, pairing the 
coat' with high heels or 

Demand for furs has 
clearly risen. The National Trappers' 
Association and other wildlife experts 
estimate that the number of wild an- 
imal skins now on the market is up at 
least 30 percent from 1992. The 
Seattle Fur Exchange, one of the two 
largest fur auction houses in North 
America, said mink prices at auctions 
this year were the highest ever. 

Another reason for the return of fur, 
say people on both sides of the debate, 
is that Americans have grown weary 
of anti-fur protesters, who were often 
perceived as shrill and whose rhetoric 
often seemed peppered with contra- 

“The anti-fur movement had its 
moment and did sort of spend itself,” 
said Julia Emberley, author of “The 
Cultural Politics of Fur" (Cornell 
University Press), which will be pub- 
lished in December. 

A N att o rney for Roman 
Polanski, who fled the 
United States 20 years ago to 
escape punishment for having 
had sex with a 13-year-old girl, 
has been in talks with pros- 
ecutors about his guilty plea, 
according to court records. The 
documents don’t reveal the de- 
tails of the meetings, but 
“KTLA Morning News” in 
Los Angeles reported that ar- 
rangements were being made 
to keep the film director out of 
jail and free to continue his 
career. Deputy District Attor- 
ney Roger Gunson, who was 
also the original prosecutor in 
the 1977 case, refused to dis- 
cuss any aspect of it, and a 
spokesman for the district at- 
torney’s office, said, “Our po- 
sition has always remained the 
same — that Mr. Polanski 
must surrender. We have not 
agreed to any sentence.” Po- 
lanski, now 63, was indicted on 
six felony counts, accused of drugging and 
raping the girl after he contracted to photograph 
her for a fashion magazine. He pleaded guilty to 
one count of unlawful sexual intercourse with a 
minor and five other counts were dismissed, 
but he failed to show up for sentencing, and a 
warrant was issued for his arrest that remains in 
effect. 'Hie woman, now married with children 
and living in Hawaii, said, “I have no ob- 
jections to his return to the U.S., if that is the 
case. I’m glad that he’s worked out his legal 


Ivana Trump is single again. She has been 
granted a divorce from her third husband, 
Riccardo Mazzucchelii, an Italian business- 
man to whom she had been married for 20 
months. She was married to Mazzucchelii 
after a bitter divorce from Donald Trump, 
who is now himself in the midst of divorce 
proceedings with his wife, Marla Maples. 


The screenwriting credits on 23 f ilms writ- 
ten by blacklisted writers in the 1950s during 
the McCarthy era, including "An Affair to 
Remember,” have been restored by the 
Writers Guild of America, Bernard Weinraub 
of The New York Tunes reported. Many of 
these screenwriters either wrote under pseud- 
onyms or had “fronts” — sometimes friends 


Polanski, reportedly in negotiations over his 1977 plea. 

Z- - l 


or relatives — whose names were used in 
place of the real author's. Six months ago the 
Guild restored the credits on 24 films. The 
1957 drama “An Affair to Remember,” 
which starred Deborah Kerr and Cary 
Grant, was a remake of the 1939 movie 
“Love Affair," written by, among others, 

Donald Ogden Stewart. He was later black- 
listed, and his name did not appear on the 
remake. It will now be restored. 


For decades, several versions of The Plat- 
ters — most with at least one member of the 
original group — have been touring the country 
singing “Only You" and “Smoke Gets in* 

Your Eyes.” But a court has ruled that Herb I 
Reed, who founded The Planers in 1953, has 
the exclusive right to use the name of the 
singing group. The ruling went against Martha Lj 
Robi, the widow of Paul Robi, who died in p'V;, . . 
1989. Reed formed the group in J 953 . and Robi 
joined a year later. 


David Crosby postponed a concert tour 
with his son, James Raymond, because he 
requires surgery for a tom muscle in hi® 
abdomen, which he will undergo in mid- 
October. The announcement came just two 
days after the singer finished a Crosby, Stills 
and Nash tour. 

Every’ country has its own AT&T Access Number which 
makes calling home or to other countries really easy. 
Just dial the AT&T Access Number for the country you're 
calling from and you’ll get the clearest connections 
home. And be sure to charge your calls on your AT&T 
Calling Card. It'll help you avoid outrageous phone 
charges on your hotel bill and save you beaucoup de francs 
(up to 60%*). Check the list for AT&T Access Numbers. 

AT&T Access Numbers 

Step to frito* for easy 
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