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Ucralb 


INTERNATIONAL 



(tribune 


WISHED WITH THE NEW YORK TIMES AND THE WASHINGTON POST 



The World’s Daily Newspaper ■ 




Paris, Saturday-Sunday, October 4-5, 1997 


No. 35.643 




In Thailand, Doubts 
Over IMF Rescue Plan 


A Top Official Says Country Will Consider 
Turning to Foreign Banks for More Cash 




h 



bh Qjnpctfn* AaadMcd Pics 

Attorney General Janet Reno 
win step up the Gore inquiry. 


Gore Probe 
To Move to 
Next Phase 


Reno Orders Inquiry 
On Funds Exi 


UUlrJKtO 


By David Johnston 

New York Tbius Service 


WASHINGTON — Attorney 
General Janet Reno announced Fri- 
day that the Justice Department 
would expand its inquiry of Vice 
President A1 Gore’s fund-raising 
telephone calls, moving to the next 
phase in the process of determining 
whether to seek an independent 
prosecutor. 

The attorney general also rejec- 
ted the need for an independent 
prosecutor to investigate other 
White House fund-raisingpractices 
involving President Bill Clinton — 
including coffees with Mr. Clinton 
and stays in the Lincoln bedroom 
for top .Democratic donors, gov- 
ernment officials said. 

Her decisions were contained in 
a letter Friday to House Repub- 
licans who have demanded for 
months that she seek the independ- 
ent counsel and in abrief filing with 
a special three-judge panel of the 
U.S. Court of Appeals. 

While it remained uncertain 
whether she would ultimately make 
a request for an independent pros- 
ecutor, the decision took the Justice 
Department one step closer to it. 

The letter to Republican leaders 
did not say whether she would un- 
derrate a similar expansion of the 
investigation into Mr. Clinton’s 
telephone solicitations, the officials 
said His calls are now the subject 
of a 30-day initial review, and Ms. 
Reno must decide whether to ex- 


pand that inquiry by Oct 15 
Ms. Reno’s decision, althou, 


not unexpected, was a setback 
the Clinton administration and 
came at a time when Mr. Clinton 


and Mr. Gore have been trying to 
n-fioance 


languishing in Congress 
ddehange some political fiind- 


that 


shift focus of the campaign- 
debate away from themselves and 
toward Republican opposition to a 
bill lar— : " 
wouldi 
raising rules. 

Still, her decision to widen die 
inquiry of Mr. Gore’s telephone 
solicitations was unlikely to 
dampen the furor in Congress, 
where Republicans have demanded 
for months that Ms. R«o appoint 
an independent prosecutor to ex- 
amine the fund-raising practices 


See GORE, Page 4 


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By Thomas Crampton . 

Special to the Herald Tribune 


BANGKOK — A senior Thai of- 
ficial, acknowledging faltering confi- 
dence and worsening economic con- 
ditions in his country, said Friday that 
Thailand may be forced to seek help 
from foreign banks. 

The comments by Sin Ganjarerodee, 
a deputy governor of tbe Bank of Thai- 
land, marked the first time a top official 
had suggested drat die country's $17.2 
billion package from the International 
Monetaiy Fund would not be sufficient 
to puli Thailand out of its deepening 
economic crisis. 

Mr. Sin, speaking at a business con- 
ference, said die central hank would 
consider establishing co-financing ar- 
rangements with foreign commercial 
banks to raise cash for BwnpaniHi 
weakened by Thailand’s economic 
downturn and financial crisis. 

After a decade of aggressive econom- 
ic expansion achieved with borrowed 
money. Thailand’s private sector faces a 
severe financial cninCh as foreign in- 
stitutions refuse to extend them new 
credit or renew their existing loans. 

Mr. Siri spoke as the Indonesian rupi- 
ah plunged 9 percent to an aU-time low 
against the U.S. dollar, one of * the 
biggest one-day drops since Southeast 
Asia’s currency marker turmoil began in 
July. Indonesia’s already battered stock 
market fell nearly 4 percent (Page 1 1) 

Other currencies m the region were 
relatively sheltered from the rupiah’s 
plunge, with the exception of the Malay- 
sian rin ggi t, which fell 2 percent. 

Mr. Siri said that “the conditions are 
a bit worse” than when the IMF rescue 
package was announced in early Au- 
gust. *' ’The roost urgent of all agendas is 
to restore financial sector confidence,” 
he said. 

If foreign institutions do not start to 
roll over, or renew, loans, corporate 

defaults will b egin and T hailand may he 

forced to declare a debt moratorium, 
analysts at die conference said Friday. 

"The IMF financing package was 
based on three assumptions,” Mr. Siri 
said. “The assumption we made on 
short-term debt rollover may have been 
a bit too optimistic.” 

Thailand’s current-account deficit 
and level of foreign reserves were in line 
with expectations, said Mr. Siri. the 
bank's senior assistant governor. . 

To inject needed cash, Mr. Siri said 
the central bank would lode into a co- 
financing package with foreign com- 
mercial banks. “The IMF would not be 
happy if we looked to raise money in the 
market, therefore we will look to raise it 
with the private sector,” Mr. Siri said at 
the conference, which was organized by 



U.S. Navy Carrier 
Rushes to Gulf 
After Iran’s Raids 
In Southern Iraq 


CaU at Singapore Canceled, 
Apparently to Emphasize 
Washingtons Earlier Warning 


The Associated Press 

WASHINGTON — The aircraft carrier Nimitz has 

sin order to 


been ordered to skip a port call at Singapore in order to 
get to tbe Gulf ahead of schedule, U.S. officials said 
Friday. . _ 


The U.S. aircraft carrier Nimitz, which is steaming toward the Gulf, carries about 50 warplanes. 


NATO Sees Muslim Attack in Bosnia 

Secret Arms Buildup, It Says, Is Shifting the Military Balance 


By Chris Hedges 

New York Times Service 


SARAJEVO. Bosnia-Herzegovina — The Muslim- 
led government in Sarajevo is intensifying a clandes- 
tine program to arm and train its military, senior 
NATO officials contend. 

The officials said the Muslims are close to — or may 
have already achieved — the ability to mount a 


Karadzk capture looks doubtful. Page 2. 


crushing offensive against die ethnic Serbs' region of 
Bosnia. 

“The question no longer is if the Muslims will 
attack the Bosnian Serbs, but when,” a senior alliance 
commander said. “The only way to prevent such an 
attack at this point, is for the peacekeeping mission to 
extend its mandate.” 

The atli»nr<» officials were united in favoring an 
extension of the peacekeepers’ mandate. None of them 
suggested that the Sarajevo government would at- 


j troops were 

still’ in place. NATO troops are scheduled to leave in 
June, but die Clinton administration, recognizing the 
slow pace of reconciliation in Bosnia,.has joined other 
members of the North Atlantic Tteaty Organization in 
favoring an extension of the peace force, which in- 
cludes American soldiers. 

Opposition in the U.S. Congress, the strength of 
which has yet to be tested, appears to be die only 
obstacle to continuing tbe peacekeepers’ presence. 
The officials see this presence as the best chance of 
averting a flare-up of the civil war that devastated 
Bosnia from 1992 to 1995. 

It appeared that the officials' willingness to talk 
about the Muslim buildup was an attempt to influence 
the debate under way in Congress. 

NATO aside, all other factors point toward renewed 
military confrontation. 

The officials noted that while die Muslims were 
busy building a formidable military machine, the 
Bosnian Serbs’ army has been imploding under the 


See BOSNIA, Page 4 


The change of plans apparently was linked to U.S. 
warnings to Iran this week not to repeat its cross- 
border air attacks into southern Iraq. U.S. warplanes 
based in Bahrain and Saudi Arabia are patrolling tbe 
skies over southern Iraq to enforce a “no-flight’ * zone 
created after the 1991 Gulf War. 

The Nimitz, with a regular complement of fighter 
aircraft aboard, was scheduled to be on station in the 
Gulf later this month. It was ordered to skip the 
Singapore visit to arrive four or five days earlier, said 
a Pentagon official who spoke on condition of an- 
onymity. 

On Tuesday, President Bill Clinton’s administra- 
tion said it had put Iran on notice that, if its pilots again 
intruded into air space over southern Iraq, they might 
be shot down. 

Iranian rebels at bases in southern Iraq said they 
were attacked by Iranian planes Monday. 

Ken Bacoa, die Defense Department spokesman, 

said Tuesday that “we made it clear to Iran that flights 
such as tbe one they made” Monday “complicate the 
enforcement of die no-fly zone.” 

He said that message bad been communicated to 
Iran through British diplomatic rtauwiclu . 

In die attack Monday, Iranian warplanes struck a 
rebel base near the city of Kut, 170 kilometers (105 
miles) southeast of Baghdad. Kut is within die no- 
flight zone that tbe United States designated to prevent 
Iraqi attacks on Iraqi Shiite rebels. 

Mr. Bacon said the Iranian planes had encountered 
no immediate Iraqi resistance, although several hours 
later, Iraqi MiG-21 and MiG-23 fighters were 
launched — also violating tbe no-flight zone. He did. 
not say why the Iraqi planes had not been shot down. 

Tbe last U.S. air-to-air encounter with a hostile 
aircraft in the no-flight zone took place in 1993, Mr. 
Bacon said. 


Ramos Challenger: B-Film Actor With Charm 


By Seth Mydans 

New York Times Service 


A senior foreign banker at the con- 
ference who asked not to be identified 
said that commercial hanks would very 
likely welcome such a proposal. 

Thai companies owe about $73 billion 


See THAIS, Page 4 


MANILA — His biggest accom- 
it as a senator was passage of a 
L to protect the water buffalo. 

His single foray into literature — 
together with his ghostwriters — is a 
compilation of his malapropisms en- 
titled “How the Speak English Without 
Realty TriaL” 

His proudest honor is the receipt of 
five best-actor awards for B-movie por- 
trayals of swaggering tough guys. 

Vice President Joseph Estrada, 
wildly popular with movie fans around 
die country, is the front-runner to be- 
come die next president of tbe Phil- 


ippines. And as such, he has caused the 
biggest crisis in the presidency of Fidel 
Ramos. 

On Sept. 21, hundreds of thousands 
of Filipinos held the largest political 
rally in nearly a decade to oppose a 
possible attempt by Mr. Ramos to 
amend the Constitution and cling to 
office when his six-year term ends next 
June.' 

But the country's political and busi- 
ness establishment was horrified to real- 
ize t hjit this hard-drinking film-land 
heavy who mangles his English and 
never graduated from college might be 
their new president 

The only politician who could stop 
Mr. Estrada seemed to be Mr. Ramos. 


“The people around him thought I 
was getting too popular,” Mr. Estrada, 
60, said in an interview die other day. 

Mr. Ramos has been highly regarded 
as a president who has brought the na- 
tion its first taste of prosperity in de- 
cades. But Filipinos rose up in anger at 
what they saw as his attempt to tamper 
with their hard-won democratic sys- 
tem. 

Now that Mr. Ramos has bowed to 
the public outcry and vowed not to run 
again, the road to tbe presidency looks 
wide open for Mr. Estrada, known to 
eve^rone by die nickname “Erap” — a 
play on tbe Tagalog word “pare,” 
meaning friend. 

There are as many as 12 otter pos- 


sible can d id ates in die election in May, 
but none of diem approaches Mr. Es- 
trada’s popularity in national pods. 

In a country in which politics is the 
primary form of entertainment, the most 
common complaint about Mr. Ramos 
had been that he was boring. Mr. Es- 
trada, at least, would be coloxfuL 
Overweight, mustachioed, with a 
slick Elvis Presky hairdo and a Lucky 
Strike cigarette in his hand, he makes 
little attempt at gravitas and seems to 
find government to be a good joke. 

“Why do we pass all these laws when 
nobody follows them?” he once asked 
in the Senate chamber. 


See MANILA, Page 4 


AGENDA 


U.S. Space Shuttle Uncouples From Mir 


JOHNSON SPACE CENTER, 
Texas (Reuters) — The space sfautde 
Atlantis uncoupled from Russia’s Mir 
mace station Friday, leaving behind 
me American astronaut David Wolf for 
a four-month stay. 

The separation was nearly two hours 
later than planned to allow die Mu- 


crew to finish last-minute tests on a 
recently installed electronics box. 

The shuttle spent six days moored at 
die Russian space outpost for an ex- 
change of cargo and crew. Dr. Wolf, 41, 
joined the Mir crew, replacing NASA's 
Michael Foale, who spent four-and-a- 
half months aboard die station. 


The Dollar 


NcwYortt Friday C 4 PM prwfcHadW 


Quakes Rock Umbria 


DM 


1.756 


1.773 


Pound 


1.616 


1.6159 


Van 


122.0% 


121.605 



A new series of earthquakes hit cen- 
tral Italy on Friday, injuring at least 6 
people and causing additional damage 
in areas hard hit by temblors a week 
ago. The basilica of St Francis at As- 
sisi was shaken again. Page. 4. 


+11.05 


6038.58 


8027.53 


Books. 


— Page 9. 



S&P 500 


change 


Friday C * P.U prevfauadose 


+4.57 


965.03 


860.46 


Crossword Page 15. 

Opinion . — Page 6. 

Sports Pages 20-2L 


(jpfrrrflTr flumtouif ft ■■ 

HOMEWARD — Arm bandaged, Trevor Rees Jones, tbe only survivor 
of the crash that killed Diana, Princess of Wales, boarding a helicopter 
in Paris after leaving a hospital Friday. In London, Diana's biographer 
defended releasing taped interviews with the princess. Page 3. 


Israel ‘Regrets’ 
Canada Recall 
Of Envoy After 
Jordan Arrests 


Barclays Draws the Curtain on Investment Banking 


By Tom Bueikle 

Jnlerrudomil Herald Tribune 


LONDON — Lite a poker player losing nerve as 
libitive heights, T 


the ante is upped to prohibitive heights, Barclays Bank 
said Friday that it would sell die bulk of its securities 
business rather than spend die billions of dollars 
needed to challenge the giant U.S. firms. 

The decision by Britain’s top home-grown player to 
throw in die towel in the global securities business 
provided a timely and illustrative contrast to tbe $9 
billion merger last week that is to create Salomon 
Smith Barney. 

Wall Street's leading securities firms now tower 
over almost all of Che investment-banking hopefuls in 
London, Frankfurt and Tokyo, analysts said. 

Fueled by record profits from the extraordinary bull 
market in U.S. equities, reinforced by deals such as 
Salomon Smith Barney and the earlier merger of Mor- 


gan Stanley and Dean Witter, and boasting unparalleled 
technological capability and global reach, the Amer- 
ican firms now appear unassailable to all but their most 
determined, deep-pocketed rivals. 

“It just makes it hard to take them on face to face,” 
said Martin Taylor, Barclays’ chief executive. 

Barclays’ move comes afew months after a blow to 
the aspirations of a rival. National Westminster Bank. 
NatWest fired the head of its securities arm in June 
after die division lost £77 million ($124.4 million) on 


the capital resources, the investment-banking tradition 
and die relatively patient shareholders required to stay 
in die face. • 

None of them were expected to bid for the Barclays 
business, however, because it lacks the vital U.S. 
presence needed to compete directly with Wall 
Street’s tit 


titans. 


Speculation focused instead on Commerzbank, tbe 
.oGermant 


bungled options contracts, and analysts have been 
expecting tbef 


i bank to mate sharp cutbacks. 

'ft does suggest that British banks have given up 
toe ghost on investment banking," said Kathryn New- 
ton at UBS Securities’ research unit “They found it 
very difficult to break into the U.S. market/' 

The latest retreat leaves Deutsche Morgan Grenfell, 
UBS Securities and SBC Warburg as Europe's' top 
competitors with global ambitions. These banks have 


No. 3 German bank, which lades the London presence 
held by Deutsche Bank and Dresden Bank, owner of 
Klein wort Benson. Commerzbank announced in 
September that it planned to raise 1.5 biQKm Deutsche 
marks ($848.2 million) for an acquisition. ' 

’'The likelihood of Commerzbank taking a good 
look and stepping up is pretty good,” MarkHoge, an 
analyst at Credit Suisse First Boston, said to Reuters. 


Reuters 

JERUSALEM — Israel on Friday ex- 
pressed “regret” over Canada's recall 
of its ambassador following the arrest of 
two men with forged Canadian passports 
in Jordan after an attack on a leader of 
the Islamic movement Hamas. 

“The spokesman of the Foreign Min- 
istry -expressed his regret over the Ca- 
nadian announcement and stressed Is- 
rael’s desire to maintain friendly 
relations with Canada,” a ministry 
statement said. 

The Canadian foreign minister, 
Lloyd Axworthy, said Thursday that the 
envoy had been recalled for “imme- 
diate consultations” and that Ottawa 
took “great exception” to the use of 
false Canadian documents. 

Jordan said it was questioning two 
Canadi a n passport -holders who were 
arrested after an attack a week ago on 
Khaled Meshai, political chief of 
Hamas, which has been accused of sui- 
cide bombings in IsraeL 

Hamas said the attack was a bungled 
assassination attempt by Mossad, the 
. Israeli secret service organization. 

Israel has refused to comment on the 
alleged assassinati on attempt, but 
Hamas leaders and analysts m Israel 
said the trail led to Mossad. . 

"Ittasall ttje hallmarks of an (sraeH 
-operatKra,’ said Benny Moim, who co- 
wroc a book detailin g Israel ’ s 

ever. 


Tt’si 

firiy known i 
It’s the worst 


Other potential European bidden include ING should never have taken j! foj! g ? P cratl0n 
See BARCLAYS, Page 4 . See MOSSAD, page 4 










PAGE 2 


INTERNATIONAL HERALD TRIBUNE. SATURDAY'S USD&X. OCTOBER 4-5, 1997 


PAGE 14 


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Vigilant Karadzic Guards 
Dim Outlook for Capture 

CIA Surveillance Team in Bosnia Is Detected 






By James Risen 

Los Angeles Times 

WASHINGTON — Bosnian Serbs re- 
cently confronted members of a CIA sur- 
veillance team monitoring Radovan Karad- 
zic. the war-crimes suspect, and their alert 
response aroused concern in Washington as to 
whether the hard-line Serbian factional leader 
can be arrested without violence, U.S. sources 
have said. 

Apparently, no one was hurt in the con- 
frontation in Pale, where Mr. Karadzic lives, 
and the sources said that his bodyguards might 
not have realized that those keepmg an eye on 
Mr. Karadzic were from the Central Intel- 
ligence Agency. 

A White House official has confirmed that 
there was an “incident” in the Pale area in 
recent days, but indicated that it was not a 
result of an attempt by U.S. or NATO troops 
to seize Mr. Karadzic. 

U.S. intelligence sources said undercover 
surveillance of Mr. Karadzic, often from long 
range, has been under way for an extended 
period. Bur Pale is such a small village, they 
added, that it is difficult for surveillance teams 
to go undetected. 

The incident occurred as the U.S. intel- 
ligence community was under mounting pres- 
sure from Secretary of State Madeleine Al- 
bright and other administration officials to 
apprehend Mr. Karadzic. 

The fiery nationalist is still an important 
power figure in Serbian-controlled territory 
although he no longer holds a formal office. 

The U.S. intelligence sources complained 
that Secretary of State Albright and Robert 
Gelbartl, who is the chief U.S. envoy to the 
Balkans, seem increasingly impatient that 
NATO forces have been wary of attempting to 
bring Mr. Karadzic to justice. 

U.S. Special Forces and the CIA have been 


p lanning since early this year to capture Mr. 
Karadzic, intelligence officials said. 

Once arrested, he would be taken to The 
Hague to stand trial before the international 
tribunal investigating and prosecuting crimes 
committed during the Bosnian civil war. 

In July, a British elite unit went after two 
lesser-known Bosnian Serbs indicted on sus- 
picion of war crimes — killing one and suc- 
cessfully seizing the second. 

But the Pentagon and the CIA have been 
reluctant to attempt an operation to capture 
such a well-protected target as Mr. Karadzic, 
who can count on certain and vigorous sup- 
port from the ethnic Serbian police and mil- 
itary units. 

Well-placed sources said U.S. military 
commanders and intelligence officials be- 
lieved there was no way to capture Mr. Karad- 
zic without both sides to tfae conflict suffering 
casualties. 

But with U.S. troops scheduled to be with- 
drawn from Bosnia m Jane 1998, the drum- 
beat has grown louder in the U.S. government 
to remove Mr. Karadzic from his stronghold 
while there is still a large U.S. military pres- 
ence in the region. 

At this point. Congress is reluctant to ex- 
tend the deployment of U.S. troops with the 
NATO peacekeeping force in Bosnia. 

Under provisions of the 1995 peace agree- 
ment. the Bosnian Serbs were supposed to 
turn over Mr. Karadzic and others indicted for 
war crimes. The continuing freedom of Mr. 
Karadzic and his former military commander. 
General Ratko Mladic, is considered by the 
Clinton administration to be a major obstacle 
to peace. 

Officially out of office since last year, Mr. 
Karadzic is now involved in a straggle with 
the Bosnian Serb president, Biljana Plavsic — 
a struggle that underscores the degree to which 
he has retained his power in the region. 



BRIEFLY 


> r a Chirac Hopes Envoys 
%ik * Return Soon to Iran 

CHAMBERY. France — President 
Jacques Chirac said Friday that he hoped 
a dispute blocking the return of Euro- 
pean Union ambassadors to Tehran 
could be solved “in die nest few 
days." 

Mr. Chirac said he and the Italian 
prime minister, Romano Prodi, had 
agreed to re-examine the issue "so that 
the ambassadors as a group could return 
rf as soon as possible to their posts." In 
jg July, the French oil company Total 
signed a $2 billion natural gas deal with 
Iran. The accord has the tacit approval of 
the French government. 

Bat Mr. Chirac said before Union 
ambassadors return to Tehran there must 
. be a solution to Iran’s demand that Ger- 
many's ambassador be the last EU en- 
voy to return. (Reuters! 

Belarus Denounces 
Russian Bureaucrats 


Anundb FrairVThc Awrinol hen 

I DO — Workers at the Barcelona cathedral Friday pre- 
paring for the wedding of Spain’s Princess Cristina, the 
second daughter of King Juan Carlos, and Inaki Lrdangarin. 


MINSK, Belarus — President Alex- 
ander Lukashenko lashed back at Russia 
on Friday, denouncing “Moscow bu- 
reaucrats’’ whom he blamed for the 
Russian president's decision to bar him 
from visiting Russia. 


In his first public break with the hard- 
line Belarussian leader. President Boris 
Yeltsin canceled Mr. Lukashenko’s visit 
to Russia on Thursday, saying he would 
not be welcome until he frees a jailed 
Russian journalist 

Mr. Lukashenko said the move “con- 
indicts the spirit of relations between 
the two presidents and the strategy of 
developing relations between the people 
of Russia and Belarus. " 

Blair Jfeighs Reform 
Of Welfare Systems 

BRIGHTON, England — Prime Min- 
ister Tony Blair wound up his Labour 
Party’s annual conference Friday with a 
warning that unpopular decisions lay 
ahead for his government. 

Mr. Blair has appointed Frank Field, a 
member of Parliament with a record of 
drafting novel solutions to welfare prob- 
lems, as a junior social security minister 
with a brief to “think the unthink- 
able.” 

The Times newspaper quoted a gov- 
ernment source us saying Mr. Field was 
looking at a plan to have all workers pay 
into a national fund to finance nursing 
care for growing number of elderly. 

“The welfare state of 1945 cannot be 
the same as the welfare state of 2000,“ 
The prime minister wrote in The Mirror 
newspaper. t Reuters) 


Recalling 9 93 Clash, Yeltsin Warns His Foes 



TRAVEL UPDATE 
More Noise for Schiphol Airport 

AMSTERDAM (AP) — As a way to accommodate its 
growth, Amsterdam's Schiphol Airport — one of Europe's 
busiest — won a reprieve from the Dutch government Friday 
to exceed noise limits. 

The decision came after months of debate over the future of 
the airport, which has been squeezed between anti-noise 
activists and international airlines supporting.its growth. 

The government said the airport will be allowed to exceed 
the legal noise limits during the day, bat twoof its four runways 
will be closed two hours earlier to reduce night flight noises. 

Alpine TGV Link Gathers Steam 

CHAMBERY, France (AH*) — Plans for a high-speed 
TGV train link to carry goods and passengers between Lyon 
and Turin won strong support Friday at a French-Italian 
summit meeting here. 

President Jacques Chirac of France said die project would 
offer “a lot of advantages concerning traffic circulation and in 
the fight against pollution.” 

A study of the project was approved Sept. 15 by an 
intergovernmental committee. 

U.S. travelers to Cuba have been warned by the U.S. State 
Department to be vigilant in light of recent bombings at tourist 
sites in Havana. The department said visitors should be very 
careful in public areas and be alert for any unattended pack- 
ages or bags. (Reuters) 


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Court Doubles 
Fines on Spain 
Over Toxic Oil 

New York Times Service 

MADRID — A high 
court has held the gov- 
ernment responsible for 
not preventing the sale in 
198 1 of toxic cooking oil 
that killed 700 Spaniards 
and poisoned about 
30,000 others, and has 
doubled the damage pay- 
ments a lower court as- 
signed to the state last 
year. They could now ex- 
ceed $2 billion. 

The ruling Thursday 
by the Supreme Court 
was met with satisfaction 
by die victims' associ- 
ations, which appealed a 
lower-court ruling that 
they considered too le- 
nient About a third of the 
30,000 victims have re- 
ceived $500 million in 
state aid to date. 

Carlos Vila, a lawyer 
for the victims, predicted 
die new payments would 
begin within months. 

The government can 
appeal to the Constitu- 
tional Court, the highest 
in the land, if it can show a 
violation of constitutional 
rights. The prime minis- 
ter's spokesman had no 
immediate commenL 

The court also con- 
victed two former gov- 
ernment officials of neg- 
ligence. 

The toxic oil was sold 
in 1981 by traveling 
salesmen who offered 
big discounts on what 
they said was olive oiL 


The Associated Press 

MOSCOW — Speaking on the 
fourth anniversary of a violent show- 
down with Parliament, President Bor- 
is Yeltsin denounced Russian law- 
makers on Friday fra* dragging their 
feet on key reforms. 

He hinted dial he might disband the 
State Duma, the lower bouse of Par- 
liament 

“People’s patience, the president's 
patience has its limits.” Mr. Yeltsin 
warned lawmakers in a nationwide 
radio address. “Ifs too expensive a 
luxury for people to pay for your 
irresponsibility.” 

In September 1993, Mr. Yeltsin 
moved to disband the Soviet-era Par- 
liament Some members refused to 
leave die White House, the main 
building of the Russian government 

When aimed supporters of the 
holdout lawmakers attacked govern- 
ment buildings, Mr. Yeltsin struck 
back with troops and tanks. 

About 200 people were killed in the 
shooting on Oct 3-4, which included 
tank shells fired pointblank into the 
White House. 

“The confrontation between the 
lawmakers and the executive power 
then led to bloodshed/' Mr. Yeltsin 
grimly reminded legislators. " 

In his speech, Mr. Yeltsin criticized 
the Duma for its hard-line position 
against private ownership of land. 

Mr. Yeltsin wants to expand the 
private property market He recently 
vetoed the Land Code, a proposed law 
that would have limited private own- 
ership of land and banned altogether 
the sale of farmland, i 

But tfae Duma, which is still dom- 
inated by old-style Communists and 
other hard-liners, overturned his 
veto. 

“Before passing the Land Code, 
they should nave looked into the Rus- 
sian Constitution,” which proclaims 


the right to own land, Mr. Yeltsin 
declared. 

He also lashed out at the Duma for 
its rejection of the government's wel- 
fare reform and fori its criticism of the 
Kremlin's foreign policies and draft 
1998 budget. 

Budget hearings are scheduled to 
begin next week. But Communists 
and their allies have already said they 
would not accept the austere budget 
plan, which sharply curtails subsidies 
to regions and industries. 

“judging the Duma's feelings, 
we'U face a new round of confron- 
tation between the Duma and the ex- 
ecutive power," Mr. Yeltsin said. 
“I’ve offered them a dialogue and 


accord. But they can’t leave their am- 
bitions behind.” 

Mr. Yeltsin did not specify what 
action he planned to take. But his 
remarks and other recent comments 
have suggested he might move again 
to disband the lower house. 

The constitution gives the presi- 
dent the power to disband the Duma if 
lawmakers vote no confidence in the 
cabinet. Such a vote can be initiated 
by Prime Minister Viktor Cherno- 
myrdin. Mr. Yeltsin’s ally. 

The leader of the diminished Com- 
munist Party, Gennadi Zyuganov, de- 
scribed Mr. Yeltsin's remarks as 
“blackmail and pressure.” 

Meanwhile, several hundred 


people gathered Friday near the Os- ' 
tankino State Television Center in 
Moscow for a combination anti-gov-' 
eminent rally and memorial service 
for people killed in the 1993 fight- 
ing. 

On a cold and drizzly day, Russian 
Orthodox priests chanted and mourn- 
ers lit candles, while around them 
Communists traded angry remarks 
about Mr. Yeltsin’s government and- 
waved red Soviet-era flogs and signs 
that proclaimed, “ Yeltsin is a traitor” 
and “Long Live Soviet Russia." 

“The current administration has 
robbed me of everything: my past,, 
present and future,” said Valeri Yer-! 
makov, a 56-year-old engineer. 


Turks Report Iran and Syria Troop Buildup 


Reiners 

TUNCELI, Turkey — Turkey said 
Friday that Iran and Syria have 
massed troops near a Kurdish enclave 
in northern Iraq in an apparent re- 
sponse to a Turkish milkary offensive 
against rebel Kurds in the area. • 

An army officer said: officials had 
observed “military movements in 
Iran and Syria toward their borders” 
with Turkey. He gave no indication of 
the size of the Iranian and Syrian 
deployments, bat said they mostly 
consisted of armored units. ‘ ‘It cannot 
be said that Turkey is in danger,” he 
said. 

The Anatolian News Agency said 
earlier that there was a buildup of 
Syrian armored units near a triangle of 
territory where Syria, Turkey and 
northern Iraq meet. It said the Syrian 
troops were 30 kilometers (20 miles) 
from the Turkish border. The agency 
also said Iranian troops had been de- 


ployed on Iran's border with northern 
Iraq. 

Turkish forces have been fighting 
Kurdish Workers Party guerrillas in 
northern Iraq for almost two weeks. 

A spokesman for the London-based 
Iraqi opposition group, Iraqi National 
Congress, confirmed the deploy- 
ments, which partly ring a mountain- 
ous Kurdish-held enclave that broke 
from Baghdad after the 1991 Gulf 
War. 

The agency said Turkish forces. 


aided by an Iraqi Kurdish militia, had 
killed 415 Kurdish guerrillas. 

Fighters from the Kurdish Workers 
Party, thought to have infiltrated into 
Turkey from Iran, killed five police- 
men in a rocker attack in eastern Tur- 
key, a security, official said Friday. 

Ankara often accuses Iran and Syr- 
ia of aiding the Kurdish guerrillas in 
their fight for self-rule in .southeast 
Turkey. 

Damascus and Tehran deny help- 
ing the' rebels. 


UN Agency Demands Iraq Open Sites 


Agence Friincr-Pnsse 

VIENNA — The International 
Atomic Energy Agency demanded 
Friday that Iraq immediately give its 
inspectors information on suspected 
nuclear arms sites. 


, In a statement, approved by 75 
countries, the agency urged Baghdad 
, to hand over “without further delay,, 
currently undisclosed nuclear weap- 
on-related equipment, material and, 
information." 


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PAGE 3 


e 

n 

it 


' i 


EU Says Call 



By U.S. Has 
Familiar Ring 


A^ZtZ - “''““wugnrersafeiystan- 
oards on imported fruits and vegetables 
ajid said his proposal supported the 
commission s own defense of a Enro- 
pean Union ban on U.S. and other meats 
conta inin g hormones. 

On Thursday, Mr. Clinton asked 
Congress for authority to ban fruit and 
did not measure 
TO to U.S- safety standards or that pro- 
ducer countries did not allow U.S. au- 
thontiesto inspect. His request followed 
an outbreak Inst spring of hepatitis 
M graced to imported strawberries. 

European Union officials in Brussels 
said the position, mirrored their own 
stance m a dispute, with' Washington, 
currently under appeal at the World 
Trade Organization, over hormone- 
treated beef. 

|The U.S. seems to be tairinp the 



By Suzanne Daley 

New York Tones Service 


, . r-Jatthe’ 

lormone panel/' a commission spokes- 
man, Gerard Kiely, said. 

The EU and the United States have 
been locked in a battle over Brussels’ 
refusal to allow beef treated with hor- 
mones into the 15-nation bloc, a move it 
says is justified on safety grounds. The 
eight-year-old ban mainly affects im- 
ports from the United States, where the 
. meat industry says it has lost as much as 
!■ $250 million a year in sales in Europe. 

The Geneva-based WTO issued a rul- 
ing in July backing the United States. 
The EU appealed in September. 


Riant 1 Mtz^mvTiK Avnatfa/ Han 

A worker sweeping the streets in Rio de Janeiro in front of a poster welcoming Pope John Paul H. 

Pope Assails Brazil’s Rich-Poor Gap 


Winnie Mandela Presents 
Wito lesses for Her Defense 

She Says 5 Members of Entourage in 1980s 
Are Set to Testify She IsnH Guilty of Murder 

haviorm the late 1980s that has been the 

focus of attention. 

A former member of her entourage, 
Katiza Cebekimlu, appears prepared to 
testify that he saw Mrs. Madikizela- 
Mandela stab Stompei Seipei, whose 
body was found in 1989. A leader of 
Mrs. . Madikizela-Mandela’s body- 
guards, known as the Mandela United 
Football Club, was convicted of his 
death. 

Mr. Cebekhuhz, who has been in hid- 
ing in Kn glanf^ also says that Mrs. 
MadDdzel a-Mandela ordered the killing 
of a Soweto doctor who would not co- 
operate with a plan to embarrass a white 
priest by accusing him of homosexu- 
ality. 

Several other members of her en- 
tourage. who have been charged or are 
serving sentences for various crimes 
have said they intend to incriminate her 
when they apply for amnesty from the 
Truth Commission. 


The Associated Press 

RIO DE JANEIRO — Pope John 
Paul n condemned the wide gap be- 
tween rich and poor in Brazil on the 
first day of his visit to the largest 
Roman Catholic country in the 
world. 

Speaking Thursday to a enthusiastic 
crowd in Rio that included the Brazili- 
an president, Fernando Hennque Car- 
doso, the 77-year-old pontiff wasted 


no time in offering his diagnosis of 
Brazil's social ills. 

’’The unequal and unfair distribu- 
tion of wealth, the cause of conflicts in 
the city and the countryside," be said, 
along with the problem of unprotected 
children in big cities, represented an 
enormous challenge. 

The distribution of wealth in Brazil 
is one of the most unequal in the world: 
10 parent of the population holds 65 


percent of the country's wealth, and 
the richest 20 percent own 88 percent 
of the land. In comparison, the poorest 
40 percent of the population holds 12 
percent of Brazil’s riches. 

After delivering die first of eight 
speeches he is scheduled to give dur- 
ing his four-day stay, Pope John Paul 
flew by helicopter to the city center for 
a three-kilometer tour of Rio’s main 
avenues. 


CNN Halts Global- Warming Ad Blitz 


By Howard Kurtz 

Washington Post Service 


WASHINGTON — A blizzard of 
industry ads ou global warming has 
been airing on CNN, assailing a pro- 
posed UN treaty that would clamp down 
J <on fuel emissions. 

\ That is, until Thursday, when the 
network founded by Ted Turner ab- 
ruptly halted the million-dollar cam- 
paign. Mr. Turner is a passionate en- 
vironmentalist who has given speeches 
around the world on global wanning. 

Ben Goddard, the Los Angeles ad- 


Scandal Pushes 
A Politician 
In Australia 
To Try Suicide 

The Associated Press 

CANBERRA, Australia — A senior 


man who created the spots, said a CNN 
sales executive told him he was acting 
on orders from Mr. Turner, the No. 2 
official of the parent company. Time 
Warner Inc., and Tom Johnson, chair- 
man of the CNN News Group. 

A CNN spokesman, Steve Haworth, 
said that "it has been our policy for 
yean not to run ads on controversial 
news stories that we are covering." 

He added. "Our principles are worth 
more than the ad dollars." 

But Mr. Goddard noted that CNN 
aired $12 million worth of industry- 
backed "Harry and Louise" ads during 
the health-care debate during the first 
Clinton administration, which toe me- 
dia covered far more intensively. The 
ads, created by Mr. Goddard's agency, 
Goddard Claussen, helped defeat the 
president's health care reform plan. 

As recently as last month, Mr. Turner 
talked about global warming on CNN. ' 
“It’s hotter than hell out there,” he 
said. 

But Mr. Haworth dismissed sugges- 
tions that Mr. Turner singled out the ads, 
which began Sept. 10, because of his 
strong views, saying, "That thesis is 


belied by the fact that we took the ads.” 
Mr. Haworth said no ads would be ac- 
. cep ted from any faction in toe con- 
troversy. 

The rejected commercials — which 
continue to air in some local television 
markets — were financed by the Global 
Climate Information Project, a coalition 
that includes toe American Automobile 
Manufacturers Association, National 
Association of Manufacturers, National 
Cattlemen’s Beef Association and 
United Mine Workers. 

One of the ads says: "What do you 
know about toe United Nations’ pro- 
posed climate treaty? ... It would force 
the U.S. to cut energy use by over 20 
percent . . . Gasoline prices could go up 
by 50 cents a gallon.* 

Mr. Haworth said CNN began a legal 
review after the Environmental Infor- 
mation Center, a Washington advocacy 
group, questioned rite ads’ accuracy. But 
a spokesman for toe coalition. Richard 
Pollock, said they had been approved by 
CNN's standards and practices division. 

“They’re just trying to cover their 
tails,” Mr. Pollock said. "The man at 
the top said. ‘Pull ’em.’ ” 


Away From Politics 


• Nearly 60 percent of the nation's 

elderly surveyed in 1995 received a flu 
shot, the highest vaccination level ever 
recorded for U.S. seniors by govern- 
ment researchers. (AP) 

• A U-S. Navy F-14 Tomcat fighter jet 
on a routine training flight crashed in toe 
Atlantic Ocean, but botopilots had ejec- 
ted, the navy said in Virginia Beach, 
Virginia. The navy said that one pilot 
was rescued and a search was underway 
for toe other. It was toe seventh U.S. 
military plane crash since Sept 13. 

(AP) 

• Plowing into cars and spreading 

terror as it roared down Fifth Avenue, 
an out-of-control New York City bus 
struck and killed a delivery mao and 
injured three people before crashing in- 
to a store. One of those hurt, Neil Mac- 
Farquhar, 38, a reporter for The New 
York Times, was on a bicycle when be 
was it. He was critically injured The 
police, said the driver had a history of 
medical problems, and toe police said he 
suffered a ‘‘possible heart attack or 
seizure.” (AP) 


JOHANNESBURG — A week after 
Ffestioned during dosed - hear- 
Squto Africa’s Troth and Re- 
conciliation Commission, President 
Nelson Mandela’s former wife, Winnie 
Madikizela-Mandda, lashed back, pro- 
ducing five witnesses she said would 
prove she was not guilty of murder or 
any acts of violence. 

Ata news conference Thursday, Mrs. 
Madflrizela-Mandela challenged report- 
ers to interview toe witnesses, who sat 
on both sides of her. But she refused to 

direct' any question^ at them, Ihe^iti- 
sisted instead that toe reporters would 
have to track down the men, who were 
members of her entourage in the late 
1980s, on their own time and at toe 
convenience of the witnesses. 

In recent weeks, an embattled Mrs. 
Madikizela-Maodela has faced a host of . 
new allegations about her involvement 
in toe death of a 1 4-year-old activist in 
1988, mid it has become clear that toe 
commission, charged with investigating 
atrocities of toe past,- is questioning her 
about at least seven other deaths. 

But none of that has stopped Mrs. 
Madikizel a-Mandela from entering the 
race to become deputy president of the 
African National Congress, toe coun- 
try's governing party. After President 
Mandela retires in i 999, that would give 
Mis. Madikizela-Mandela a strong 
claim to become toe country's deputy 
president, a situation that could be ex- 
tremely embarrassing to the party. 

Indeed, Thabo Mbeki, the current 
deputy president and Mr. Mandela’s, 
likely successor, appears to be taking 
steps to diminish that possibility. 

In an interview published Thursday 
in a Johannesburg-based weekly 
magazine, toe Financial Mail, Mr. 
Mbeki said it "should not necessarily 
follow that the deputy president of toe 
ANC become the deputy president of 
the country.” 

He said that “as I hear opinion in toe 
ANC, toe general feeling is that toe 
president should be able to choose his 
deputy.” He seemed to suggest that in 
toe future, the deputy president of toe 
ANC might be relegated to dealing with* 
party business and not hold any gov- 
ernment job. 

Mrs. Madittizela-MaDdela, despite 
having been convicted in 1991 of kid- 
napping toe 14-year-old activist, James 
(Stompie) Moeketsi Seipei, remains ex- 
tremely popular among Sooth Africa’s 
-poorest and most militant citizens. Al- 
though she has often been at odds with 
her former husband and his inner circle, 
she is expected to at least make a fair 
showing in her race Tot deputy ‘ pres- 
idency of the ANC 

In recent years, she seems to have 
lurched from one controversy to another 
— from being dismissed from a cabinet 
post for insubordination to tacking up 
huge debts. But recently, it is her be- 


Rights Team 
Denounces 
Congo’s Curb 
On Inquiry 


POLITICAL NOTES 


opposition politician has tried to com- 
h mil suicide by slashing bis wrists after 
V' being embroiled in a scandal over travel 


expenses. 

Police officers broke into the apart- 
ment here of Nick Sherry, toe finance 
spokesman for toe Australian Labor 
Party, Friday morning after he failed to 
meet a flight or answer telephone calls, a 
spokesman said. They found him 
covered in blood with both wrists 
slashed. 

Mr. Sherry, 4-1, has been the target of 
sustained political attacks by toe con- 
servative coalition government over al- 
legations be had misused travel allow- 
ances. He fias denied any wrongdoing. 

Mr. Sherry was conscious and in 
v - stable condition in a hospital lore Fri- 
% day. 

In a letter left for journalists, Mr. 
Sherry apologized for acting "stupidly.” 
He said he believed the attacks on him 
would not cease and that everything he 
had stood forbad been destroyed. 

“My name is now mud,” he wrote. 
"So I am taking toe appropriate course 
of action.” 

The letter was left Thursday night for 
delivery to the Australian Associated 
Press on Friday morning. 

Kim Beazley, toe Labor leader, said 
that he had had diner with Mr. Sherry on 
Thursday night and that Mr. Sherry had 
been depressed. “One can never know 
' what his thoughts were,” Mr. Beazley 
said. "But he blamed nobody, and he 
was grateful for his colleagues’ support 
during this, his most difficult week of 
his life in politics.” 

The suicide bid came amid a scandal 
. over the widespread abuse of parlia- 
4 mentaiy perks, which has thrown the 
aovemment into a crisis. 
c The scandal, labeled “Travelgate 
by the opposition before its own mem- 
bers were implicated, has dominated toe 
national political debate for two weeks. 


Clinton Seeks Citizen Panel 
To Keep an Eye on the IRS 

WASHINGTON — President BUI Clinton will 
propose the creation of an independent Citizen's 
Review Panel to handle complaints from taxpayers 
about the Internal Revenue Service, according to a 
senior administration official. 

The proposal, which Mr. Clinton hopes to present 
to Congress as early as next week, will call for toe 
establishment of a watchdog agency that includes a 
national review board and 33 local review boards 
assigned to monitor toe actions of each IRS district 
office. 

The proposal comes a week after congressional 
hearings spotlighted collection abuses by IRS of- 
ficials and enforcement agents and energized a con- 
test between the administration and many members 
of Congress over reform proposals for the tax col- 
lection agency. 

The panels would be modeled on citizen review 
boards ser up in many cities to act as a check on local 
police departments. 

Officials are still considering how members of the 
IRS review panels would be selected and whether to 
recommend that the entities have authority to dis- 
cipline IRS agents. (WP) 


Reagan Ranch for a Park? 
Californians Balk on Funds 

SANTA BARBARA, California — This quiet 
coastal county that has long embraced Ronald Re- 
agan has successfully risen up in protest against a 
proposal by Governor Pete Wilson, a Republican, to 
use 55 million in federal fends to buy toe former 
president's remote mountaintop ranch, which has 
been for sale without any buyers for more than a year, 
and turn it into a state park 

The Santa Barbara News-Press editorialized 
against it, saying that Mr. Reagan, who has 
Alzheimer’s disease, would have opposed the idea as 
misuse of federal funds. 

Representative Walter Capps, a Democrat, who 
represents toe area and opposes toe federal purchase, 
said he has been inundated with local protests. fWPj 

Campaign Finance Inquiry 
Backfires on Its Chairman 

WASHINGTON — After months of putting oth- 
ers on the defensive, Fred Thompson, chairman of 
toe Senate committee looking at campaign fund- 


raising abuses, suddenly has found toe tables 
turned. 

The Tennessee Republican has come under blis- 
tering attack from within his own party, accused of a 
lack of zeal in pursuing the Democratic political 
money scandal and of a lack of judgment in recently 
calling a bait to hearings that were finally landing 
some blows. 

The bashing could be dismissed if it came solely 
from conservative activists such as Larry Klayman, 
who issued a wanted poster last week with Mr. 
Thompson's name on it. But the doubters including 
toe Senate majority leader, Trent Lott, Republican of 
Mississippi Mr. Lott has muted his public criticism, 
but aides have made it clear that Mr. Lott is frustrated 
with Mr. Thompson’s performance. fL4T) 

QuotelUnqiiote 

Bill McCartney, chief executive of toe evangelical 
men’s organization Promise Keepers, who hopes to 
see hundreds of thousands of men on Washington’s 
Mali on Saturday, kneeling in prayer to ask for God ’s 
mercy on a socially troubled America: "Historically, 
when men have come together from great distances 
and gathered strictly to repent, that has pleased the 
Lord, and He has seen fit to pour out His Spirit and 
grant forgiveness. ’ ’ (NYT) 


Agence Franee-Presse 

KINSHASA, Congo — A UN human 
rights team on Friday denounced efforts 
by toe Congolese government to pre- 
vent it from investigating whether mas- 
sacres bad been committed by President 
Laurent Kabila’s troops. 

Id a statement issued before bis de- 
parture for New York, toe chief of the 
UN mission, Atsu-Koffi Amega, 
charged that toe terms set by Mr. Kab- 
ila's government, formed since he 
seized power in the former Zaire in 
May. were "contrary” to toe UN man- 
date. 

Mr. Amega said Secretary-General 
Kofi Annan had "envisaged an inde- 
pendent inquiry across toe whole ter- 
ritory” of the Congo into the alleged 
slaughter of Rwandan Hutu refugees 
who had been caught up in the Zairian 
uprising. 

The UN team arrived in Kinshasa on 
Aug. 24 to investigate reports that mass 
graves of massacred refugees were hid- 
den in eastern Congo. But toe gov- 
ernment repeatedly denied the inves- 
tigators permission to travel to the 
interior to begin work. 

Mr. Annan ordered toe four senior 
members of the mission to return Friday 
to UN headquarters in New York for 
consultations. 

■ U.S. May Send Mission 

John M. Goshko of The Washington 
Post reported earlier from Washing- 
ton: 

The United States is considering 
sending a high-level mission to Congo 
in an effort to break toe six-week dead- 
lock between Mr. Kabila and toe UN 
human rights team. 

Sources said that if Washington goes 
ahead with the plan, the mission would 
be headed by a special envoy with 
strong expertise in African affairs, pos- 
sibly a member of Congress or someone 
not serving in government They said a 
decision was expected from Washing- 
ton in one or two days. 

The sources said Mir. Annan has 
agreed to give toe mission two weeks to 
see what it can accomplish before toe 
United Nations determines whether to 
withdraw the rest of its investigating 
team. 

The U.S. envoy would not only seek 
talks with Mr. Kabila, but also try to 
visit Uganda, Angola and Rwanda, 
which helped Mr. Kabila's rebels over- 
throw President Mobutu Sese Seko. The 
U.S. mission would seek their aid in 
influencing Mr. Kabila. 

The U.S. idea arose in discussions 
between U.S. officials and Mr. Annan, 
whose difficulties in gauging Mr. Kab- 
ila’s intentions about cooperating with 
the investigation caused him to order toe 
team leaders to New York. 


Jarl Kulle, 70, Swedish Actor and Star in Bergman Films 


The Associated Press 

STOCKHOLM — Jarl Kulle, 70, a 
Swedish actor who was one of Ingmar 
Bergman’s favorites and a star of his mas- 
terpiece, “Fanny and Alexander,” died 
Friday at his home in Bergshamra, north of 
Stockholm- 

One of toe most prominent personalities 
of the modem Swedish sta°e. Mr. Kulle 
in a number of Mr. Bergman’s 
including “Waiting Women” 
(1950), "Smiles of a Summer Night” 


(1955), and "Now about these Women” 
(1963). The part of toe happy innkeeper 
and seducer, Gustav Adolf Ekdahl, in 
1982’s “Fanny and Alexander" was writ- 
ten especially for Mr. Kulle. 

But Mr. Kulle ’s home ground was toe 
Royal Dramatic Theater in Stockholm. At 
toe theater’s premiere of Eugene O’Neill's 
“Long Day s Journey Into Night,” in 
1956, Mr. Kulle played toe pan of toe son 
Edmond. He reappeared in toe same play 
32 years later, playing the role of toe father. 


At toe Royal Dramatic, Mr. Kulle also 
appeared in a number of Bergman pro- 
ductions. 

Hector Julio (Cary be) Paride, 86, 
Artist Celebrated Brazilian Cults 
' SAG PAULO (AP) — Hector Julio Par- 
ide Bemabo, 86, the Brazilian artist known 
for colorful paintings of Afro-Brazilian re- 
ligious cults, died of a heart attack Wednes- 
day in toe northeastern city of Salvador. 


C7 

Better known by his nickname, Cary be, 
Mr. Paride Bemabo died during a meeting 
of devotees of candomble, a Yorubah re- 
ligion brought over from Africa by slaves. 

An exponent of the naive style, his paint- 
ings employ’strong lines and rich splashes 
of color to depict typical Bahian figures and 
Orixas, as the Afro-Brazilian deities are 
known, who appear as masked and skirted 
figures. 

His works have been used to illustrate 
various Latin American novels. 


Rush to Publish Interviews With Diana Is ‘Honorable,’ Author Says 


By Dart Balz 

Washington Post Service 


^U)Mvtews y with 
JSftScew of Wales, sayrag there was 
‘‘no point in pretending anymore thal 
she wasnot the 

• •DiaS.Her True Story^begansmvmg 
in London bookstores Friday afternoon. 


despite earlier threats of legal action to 
block it. 

The hastily published book contains 
18,000 words from a series of secret in- 
terviews with Diana, but no new rev- 
elations. Mr. Morton also sold excerpts of 
toe interviews to People ma gazin e. 

The publication coming just a mouth 
after Diana's death in an ■automobile ac- 
cident in Paris, Mr. Morton has faced 
criticism that he is seeking to cash in on 
toe princess’s death without regard for the 
impact on her sons. Prince William and 
Prince Harry. But in a television inter- 


view, Mr. Morton said he believed Diana 
would "be happy” that her words were 
now available for the world to read. 

"I am very proud to be her biogra- 
pher,” he said in an interview on ITV’s 
"This Morning" program. “I am very 
proud that sbe chose me to tell her story. I 
think I’ve behaved extremely honorably 
throughout tins whole episode.” 

Mr. Morton said the unhappy circum- 
stances of Diana’s marriage to Prince 
Charles have been well documented and 
that, if her two sous “really want to un- 
derstand their mother,” they eventually 


would want to read toe book in her 
words. • 

Arguing that during Diana’s life he had 
protected the confidentiality of their ar- 
rangement, Mr. Morton said it was time to 
set the historical record straight. 

“I have been asked, ‘Was she in- 
volved?' and I always said no to protect 
her,” he said, "Well, she doesn t need 
protecting anymore.” 

But Diana's brother, Earl Spencer, and 
other members of her family were- de- 
scribed through a spokeswoman Friday to 
be “very distressed and saddened” byMir. 


Morton’s decision to publish toe book. 
The spokeswoman said the family was 
still in consultation with lawyers “on vari- 
ous points.” 

Buckingham Palace officials this week 
described the decision to publish a new 
edition. of toe book "sad/' bat had no 
comment Friday. 

Earlier on Friday, toe Spencer family 
issued a one-sentence statement saying, 
‘‘The executors of Diana’s will have 
sought legal. advice and -are considering 
their position.” But there was nb action 
are the books hit toe bookstores. 


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- PAGE 4 


INTERNATIONAL HERALD TRIBUNE, SATURDAY-5 UNDAY, OCTOBER 4-5, 1997 


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Quakes Again Batter Central Italy 

6 Are Injured and Assisi Basilica Sustains More Damage 4 


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A woman at the ruins of her boose In Serravalle on Friday after new temblors struck the Umbria region. 


CoBpbdtit Or Sc&FnawDupatn 

ASSISI. Italy — More earthquakes 
shook central Italy on Friday, inflicting 
new damage on areas hard hit by a pair of 
strong temblors a week ago and ter- 
rifying residents. 

Six people sustained minor injuries in 
the first and strongest quake, which had a 
magnitude of 4.8 on the Richter scale. 

It struck at 10:55 A-M., sending 
people traumatized by last week’s 
tragedy fleeing into the streets. 

“People can’t take it anymore," said 
Giancarlo Sagramola, a civil defense 
official in the town of Fabriano, where a 
man jumped from a first-floor window in 
terror. He was unhurt 

A series of aftershocks followed, in- 
cluding a tremor with a magnitude of 3.5 
at 1:04 PJML and another almost as 
strong about 40 minutes later. 

Friday's quake aggravated damage 
sustained, by the famed basilica of St 
Francis at Assisi, said the Reverend 
Pasqoale Magro, head of the basilica’s 
museum. 

Part of the cathedral’s vaulted ceiling 
collapsed last week during the second 
and, at magnitude 5.5, die strangest 
quake. Foot people were killed and 
works attributed to Giotto and Cimabue 


were destroyed. In all, 1 1 people died in 
Inst week's double quake. 

Father Magro said the basilica's dam- 
aged ceiling survived the new shocks. 
But more stones fell from the damaged 
south transept facade and showers ot 
plaster rained down inside die cathedral. 

Local officials said Assisi's hospital 
had been evacuated as a precautionary 
measure and schools had been closed. 

The state railroad said trains running 
through the Umbria region had been 

r-nnrp.Wi 

In Perugia, the nearest major city to 
the epicenter, hundreds of people ran 
from shops, offices and houses into the 
streets in fear of falling masonry. 

Perugia’s Gothic Palazzo dei Priori 
was slightly damaged. 

The historical center of the Umbrian 
town of Foligno was closed and pan of a 
bell tower on the town hall, already 
damaged last week, crumbled away. 

As with last week's earthquakes, 
tremors were felt in Rome, more than 
100 kilometers (63 miles) horn the epi- 
center. 

When the new temblors struck, tech- 
nicians were cataloging pieces of fres- 
coes that fell last week and experts were 
studying ways to reinforce the basilica's 


y ery | BOSINIA: NATO Fears Secret Muslim Weapons Buildup Will Lead to New Offensive Against the Serbs 


structure. Italy's civil defense chief 
Nicola Barberi. said the strength of 
temblors Friday caught the authorities 
bv surprise. 

’ “Never have such aftershocks been 
seen in 1.000 years" of the region’s 
history, he said. ■ ■ • 

The head of Italy's National Insdtwe 
of Geophysics. Enzo Bosehi, said buihJ. 
ings weakened by last week’s big quakes 
should be evacuated until they can bere- 
inspected. 

' “It’s impossible to precBct’ , ^vhcnor 
if more aftershocks might hit, he said 
The central regions of/Umbria and 
Marche have quivered with aftershocks 
since, as have neighboring Tuscany. 

The new humor struck as relief teams 
were working throughout the region to 
reinforce damaged buildings, find shel- 
ter for people driven from their homes 
and assess the toll on the area's cultural j 
treasures. fjj 

Culture Minister Walter Veltroni on t 
F riday said die damage to die region’s 
artistic patrimony would amount to hun- 
dreds or billions of lire. 

Friday's epicenter was about 35 ki- 
lometers from Assisi in Col Fiorito, a 
town heavily damaged last week. 

(AP, Reuters) 


BRIEFLY 


Continued from Page 1 

pressure of a political power struggle, a lack of 
funds, poor morale, a severe shortage of spare 
parts ami high desertion rates. 

There have been several indications over the 
last few weeks that the Bosnian government’s 
secret weapons acquisition programs and 
clandestine training rave been stepped up. 

For example, an Egyptian freighter flying a 
Uk rainian flag lies quarantined under NATO 
guard off the Croatian port of Ploce, its hold 
containing 10 Soviet-built T-55 tanks that 
were to be delivered as part of a secret ship- 
ment to the Muslims. 

All weapons deliveries are supposed to be 
shared between Muslim and Croatian units in 
the united force established under die terms of 
the Bosnian peace accord. 

But the Muslim-Croat force exists largely 
on paper, and alliance officials said the tanks 
were to be turned over to the Muslims. 

A spokesman for the State Department's 
Task Force on Military Stabilization in the 
Balkans, reached in Washington, described 


the impounded weapons as a procedural prob- 
lem that, he said, “will be resolved shortly.*' 

But senior allianc e nffiHuk said that die 
Ameri cans were angry about the shipment, 
and that other deliveries have managed to 
elude monitors. 

Reports in recent weeks indicated that 
weapons have arrived in the Croatian pert of 
Rijeka, which is not monitored by NATO 
personnel, officials said. Ploce is monitored. 

The officials also said that a general of the 
I ranian Revolutionary Guard was posted at 
the Iranian Embassy in Zagreb, the capital of 
Croatia, and that since his arrival in August he 
has apparently been working out deals with 
die Croats to smuggle more weapons through 
Croatia ro die Bosnian Muslims. 

And peacekeeping officials said they had 
received several intelligence reports that 
Muslim infantry troops were being trained 
secretly in Iran and Malaysia. 

The secret effort to build up the Bosnian 
Army is a violation of the peace agreetnent, 
which set strict limits on the number of heavy 
weapons to be possessed by all sides. The 


effort is being undertaken as Washington, in a 
program known as "equip and train,” 
provides instruction and NATO armor and 
artillery to die Bosnian Croats and Muslims. 

That $300 million program, which has in- 
cluded die delivery of advanced American 
tanks two generations ah^ari of anything in the 
Bosnian Serb arsenal, has in the eyes o? many 
alliance officials, including the British, already 
tipped the balance in the Muslims' favor. 

Moscow is increasingly nervous about the 
Muslim buildup against its traditional Serbian 
allies. Senior Russian commanders met with 
Bosnian Serb generals and gave them clas- 
sified NATO satellite photos of military train- 
ingcamps for Muslims. 

The Russians' purpose was to warn the 
Serbs of an impending debacle, Western dip- 
lomats said. 

“The Bosnian Serb generals were 
stunned,” said a senior Western diplomat 
who was informed of the meeting. “The 
mood in the room was very black." 

The Muslims contend that they are ac- 
quiring weapons and training only under the 


strict limits set down by the Bosnian peace 
agreement and the guidelines of the equip and 
train program. 

“A needle can’t get in here without NATO 
knowing about it," said Mirza Hajric, an ad- 
viser to President Alija Izetbegovic of Bosnia. 

"Anyone who believes that stuff can be 
smuggled in here is a fool,” he continued.- 
"Apparently the Ministry of Defense did not 
properly inform U.S. officials about tins ship, 
but NATO was informed. It is just poor com- 
munication. I assume it was a mistake. As far 
as training goes, there is no military training of 
Bosnians in Iran or other countries. All train- 
ing is done under equip and train.” 

NATO strategists expect that the Muslims' 
first move would be a drive to seize the 
Serbian-held lands in eastern Bosnia. The 
region could fall “in a matter of days,” one 
analyst said. 

"We also expect most all of the Serbs there 
to be driven into Serbia," a top alliance com- 
mander said, “an event that could fence Bel- 
grade, even against its will, to intervene. This 
is a high-risk operation.” 


GORE: Reno to Expand Campaign Inquiry 


Continued from Page 1 

used by Democrats in the Clin ton -Gore 
re-election campaign. 

Mr. Gore and his advisers seemed 
resigned to the decision. The vice pres- 
ident’s aides have said an expanded in- 
quiry would give them an opportunity to 
present Justice Department lawyers with 
information showing that he did not 
break the century-old law that limits 
fund-raising by government officials on 
federal property. 

Ms. Reno’s letter was a reply to one on 
Sept. 3 from Representative Henry Hyde 
of Illinois and other Republicans on the 
House Judiciary Committee. Under die 
independent prosecutor statute, if Ms. 
Reno receives a request from more than 
half the members of the majority party 
on the Judiciary Committee, she must 
respond to their complaint in writing 
within a month. 

Mr. Hyde's letter outlined allegations 
of wrongdoing by Democrats during the 
presidential campaign. It asked Ms. 
Reno to consider the appointment of an 
independent prosecutor to examine the 
issues, including the possibility that 
China sought to improperly influence 
American election campaigns and 
whether Democratic fund-raisers ille- 


gally laundered foreign money into the 
Clinton-Gore campaign. 

In those instances, Mr. Reno’s letter 
rebuffs tiie need for the independent 
prosecutor mainly on the ground that 
there is no evidence of wrongdoing by 
any of the nearly two dozen high-level 
officials who are covered by the statute, 
the officials said. 

During tiie 90-day preliminary inves- 
tigation, the Justice Department must 
deter mine whether there is enough ev- 
idence of criminality to believe Mr. Gore 
actually violated the law. If the inquiry 
finds such evidence of wrongdoing, Ms. 
Reno must seek die appointment, which 
would be made by a three-member panel 
of appellate judges. 

The preliminary investigation, which 
can be extended 60 days more if nec- 
essary, will allow prosecutors to conduct 
interviews with witnesses and examine 
documents. But they cannot use grand 
juries, subpoenas and immunity grants. 

Prosecutors may take into account a 
variety of factors in determining wheth- 
er Ms. Reno must refer the case to an 
independent prosecutor. They can con- 
sider Mr. Gore's state of mind and weigh 
whether the Justice Department would 
actually prosecute such an offense under 
a somewhat obscure 1883 law. 





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BARCLAYS: Investment Bank to Be Sold Montenegro to Vote Sunday for a President 


Continued from Page 1 

Group, the Dutch banking and insurance 
giant And some U.S. investment banks, 
such as JJP. Morgan, could view BZW as 
a vehicle for strengthening their Euro- 
pean presence, analysts said. 

Barclays built up its securities arm, 
BZW, through acquisitions during the 
mid-1980s, when London's financial- 
services industry was in the throes of a 
sweeping deregulation that broke down 
the barriers between banks and secu- 
rities firms. 


THAIS: 

Doubts on IMF Plan 

Continued from Page 1 

in foreign debt Half the debt is in short- 
term loans, $18 billion of which are 
scheduled to roll over by the end of this 
year. The money was borrowed during the 
years when the baht was firmly pegged to 
a do liar-dominated basket of currencies. 

Few companies hedged against cur- 
rency fluctuation, and many of the short- 
term loans that are now coming due were 
used to finance long-term projects or real 
estate speculation. The cost of repay- 
ment snot up, however, when the baht 
was floated July 2, setting off a regional 
currency crisis. The baht has lost about 
40 percent of its value this year. 

The increased cost of foreign debt has 
wiped out corporate profits and created a 
paralyzing shortage of operating cash 
for industry. The severity of the problem 
has been worsened by the government’s 
confused management of foe crisis. 

Mr. Sin said that while he hoped the 
IMF package negotiated in early August 
was enough, authorities must explore all 
options. 

Separately, the Thai government an- 
nounced Friday that the 1 997 government 
budget deficit was 42 billion baht, well 
within foe IMF imposed limit. 


At foe time, Barclays, NatWest and 
other British companies were compet i ng 
against an influx of U.S. banks and se- 
curities firms eager to establish a 
foothold in Europe. Both sides appeared 
vulnerable to the ambitions of Japan's 
big banks and securities firms, which 
enjoyed unmatched capital resources 
thanks to booming stock market there. 

Since then, however, a vicious bear 
market and numerous financial scandals 
have sidet r a c ked the Japanese. Like other 
European firms, meanwhile, BZW has 
foiled to break into the U.S. market or 
establish itself as a major underwriter 
corporate stock offerings, a lucrative busi- 
ness that holds the key to providing big 
companies with a full range of services. 

In contrast, U.S. securities braises have 
boomed thanks to a domestic stock mar- 
ket that seems to defy the laws of gravity 
and business cycles. A good example 
came Thursday when Acquisitions 
Monthly published figures showing that 
Goldman, Sadis & Co., foe private U.S. 
partnership, was the leading adviser on 
British takeovers in the first half of this 
year. The news was not lost on Barclays, 
which tapped Goldman as its adviser to 
find a buyer for its securities business. 

"We would have needed to spend a 
lot of money to reposition foe primaiy 
side of the business,” Mr. Taylor said. 
With a return on equity of just 12 percent 
at BZW. compared with 25 percent on its 
business lending and 34 parent on con- 
sumer lending, company directors 
reached an easy conclusion two weeks 
ago. "We decided we were sellers, not 
buyers,” he said. 

Barclays shares fell sharply Friday, 
losing 475 pence, to close at £16.975, 
apparently reflecting investor disap- 
pointment that foe bank had not an- 
nounced an arranged sale. 

In the longer term, however, some ana- 
lysts said the move should help the shares 
by improving the level and stability of 
earnings. "It ought to argue fra 1 a higher 
rating for the shares,” said Phil Pickard, 
an analyst at HSBC James Capel, the 
brokerage aim of HSBC Midland Bank. 


A woman in Podgorica getting advice Friday from a billboard on how to casta ballot in 
West and presidential elections Sunday. The posters urge a vote for Milo Djukanovic, who as 

ompeting prime minister has led the republic’s attempts to emerge from the shadow of Serbia, 
is ana se- 

abiish a 

fJaparfs MOSSAD: Israel Ibices ‘ Regret ’ Over Canada’s Anger 

is u/hirh ^ O 


Continued from Page 1 

Mr. Axworthy, speaking to re- 
porters in New York before meet- 
ing Secretary of State Madeleine 
Albright, said: "We, of course, 
take great exception to foe use of 
foe reputation of a Canadian 
passport for those, kinds of pur- 
poses.” 

Although he stopped short of 
directly accusing Israel of re- 
sponsibility fra: the affair, he said 
he had contacted an Israeli 
deputy foreign minister, whom 
he did not name, to express con- 
cern. 

Mr. Axworthy said Canada 
had made clear to Crown Prince 
Hassan of Jordan that "we have 
no involvement whatsoever” in 


foe attempted assassination. 

The C an ad i an ambassador. 
David Berger, said Friday, "I am 
returning to Canada tonight for 
consultations.'' 

Mr. Axworthy said that dis- 
cussions would be held with Mr. 
Berger on what other steps might 
betaken. 

“We want to go through this 
very carefully and determine 
what oar other steps might be.” 
Mr. Axworthy said to foe Ca- 
nadian Broadcasting Corp. 

Mr. Morris, the analyst, said it 
was a mistake to have launched 
an operation in Jordan, which 
signal a peace treaty with Israel 
in 1994 and has often seemed to 
be Israel's only Arab friend since 
Prime Minister Benjamin Netan- 


Terrorists in Algeria Massacre 38, 
Most of Them Women and Children 


The Associated Press 
ALGIERS — A group of 
aimed men killed 38 people early 
Friday in Algeria, slitting their 
throats or cutting off their heads 
before setting the victims' houses 
on fire, witnesses said. 

The attackers stole food, 
money and jewelry before leav- 
ing die village of Mahelma just 
before dawn, the witnesses said. 

There was no immediate claim 
of responsibility for the atta c k, 
but the raid was characteristic of 
the Armed Islamic Group, the 
most violent faction of Algeria’s 
bloody insurgency. 


The killings came two days 
after a rival militant group, foe 
Islamic Salvation Army, began a 
unilateral cease-fire, the first 
since foe insurgency started five 
and a half years ago. 

Witnesses to foe Mahelma at- 
tack, in foe Blida region 50 ki- 
lometers south of Algiers, said 
the victims were mostly women 
and children. 

At least one of the attackers’ 
intended victims was able to es- 
cape, the witnesses said. 

Hundreds of people have been 
killed in similar attacks in recent 
weeks. 


yahu was elected prime minister 
last year. 

Israel Television reported 
Thursday that Mr. Netanyahu 
dispatched four top officials to 
Amman on Sunday, including 
Defense Minister Yitzhak Mor- 
dechai and National Infrastruc- 
ture Minister Ariel Sharon, to 
talk with King Hussein. 

The outcome of their mission 
was Israel's decision to free foe 
ailing founder of Hamas, Sheikh 
Ahmed Yassin, from prison on 
Wednesday and fly him to Am- 
man, in what was billed as an' 
Israeli peace gesture. 

Ring Hasson and Yasser Ara- 
fat, foe Palestinian leader, visited 
Sheikh Yassin in an Amman hos- 
pital Thursday and said Israel must 
deliver on foe pledges it has made 
under accords with Palestinians. 

_ “I hope that this is the be- 
ginning of other such moves in 
the future," the king said outside 
the hospital. 

• “I would certainly like to see 
genuine efforts and genuine com- 
mitments to materialize in facts 
on the ground. The king has ac- 
cused Mr. Netanyahu of failing to 
meet his commitments to foe Pal- 
estinians, including releasing 
thousands of prisoners. 
t Mr. Arafat said he hoped that 
"American efforts will continue 
to protect the peace treaty and 
push the Israeli government to be 
committed to what it signed." 

Jordan’s minister of state for 
information, Samir Mutawae, 
said foe two men arrested last 
week were still under investiga- 
tion. 


Bomb Hits Afghan UN Camp 

KABUL— A bomb slammed into a UN camp for Tajik 
refugees in northern Afghanistan, killing two people, 
wo unding 15 others and sending hundreds fleeing for 
safety, UN officials said Friday. 

The camp, located between Afghanistan’s Taleban 
religious army and a northern-based opposition alliance, 
houses thousands of refugees who fled a civil war in 
neighboring Tajikistan. (AP) 

Jakarta Curbs Timber Permits 

JAKARTA — Indonesia revoked logging licenses 
Friday of 29 timber companies implicated in fires re- 
sponsible for choking smog across much of Southeast 
Asia. 

The official Antara news agency said foe move fol- 
lowed an ultimarum to 176 companies to account for their 
actions after satellite data images showed so-called fire 
hotspots on land licensed to the companies. The deadline 
expired Thursday. (Reuters) 

Writer Loses Malaysia Appeal 

KUALA LUMPUR — A Canadian correspondent for 
foe Far Eastern Economic Review who was sentenced to 
jail for an article he wrote lost his request Friday to get his 
passport back pending an appeal. 

Murray Hiebeit, 47. of Steinbach, Manitoba, was sen- 
tenced Sept. 4 to three months in jail for contempt of the 
judiciary. 

Since his conviction on May 30, Mr. Hiebert had been 
free on bail. But he had to request the return of his 


and had asked for its return until his appeal. (AP) 

UN Rights Eiways to Visit China 

GENEVA — Two United Nations human rights en- 
voys begin a 10-day visit to China on Monday with a 
government promise of the right to interview prisoners in 
private, a UN human rights spokesman said Friday. 

It is foe only foe third UN investigation to be allowed to 
enter China, accused by Western countries and activist 
• groups of repressing dissent. (Reuters) 

Mexico Charges 19 Policemen 

MEXICO CITY — Mexican authorities have charged 
19 police officers in the shooting deaths of three young 
men who were taken by the police from a Mexico City 
slum — killings that have incensed capital residents. 

During a closed-door arraignment Thursday evening, 
one officer was charged with deliberate homicide and foe 
others with abuse of authority in connection with die 
killings. (AP) 

MANILA: Ramos Challenger 


Continued from Page I 

When the Miss Universe 
pageant was held in Manila in 
1994, he was so taken with 
one of foe contestants that he 
said: "If Miss Colombia will 
have me. I’ll leave my wife 
for her. or even have her as- 
sassinated.” 

As a potential president, he 
has attracted a small circle of 
advisers on foe political left 
and right who seem to hope to 
steer him their way. 

“He is tabula rasa," one of 
them said recently. "He has 
no mind-set to change be- 
cause he has no mind-set.’' 

Bom in the low-income 
Manila neighborhood of 
Tondo. he is the ninth of 10 
children and foe only one not 
to finish college. The others 
are doctors, lawyers, phar- 
macists and teachers. "But 
now," Mr. Estrada said. 
‘ ’they are all the brothers and 
sisters of Erap.” 

As an actor, he specialized 
in playing underdogs who 
faced down richer and more 
powerful men. 

It is a persona he has main- 
tained as a politician and his 
support comes from foe poor 
and disenfranchised, who 
make up the majority of foe 
electorate. 

"I will be pro-poor and 
pro-country," he likes to say 
when accused of having no 
economic program to offer, 
“and govern with my com- 
mon sense, which is not very 
common.” 

Almost as a sideline, he 
became mayor of his home- 
town, foe Manila suburb of 
San Juan, in 1 968 and held the 
job for 17 years before 
serving a term in foe Senate. 


Still insisting that he was 
not a professional politician, 
be won twice as many votes 
for vice president as Mr. 
Ramos did for president in the 
1992 election, in which can- 
didates for president and vice 
president ran separately. 

Mr. Ramos gave him, as 
vice president, foe thankless 
job of heading an anti-crime 
commission in a country 
where military and police of- 
ficers help run kidnapping 
and drug-running syndicates. 

It is one job he seems to 
have taken to with a will. 

So many suspects were be- 
ing killed at the time of their 
arrest that Mr. Estrada was 
removed from the anti-crime 
commission six months ago. 

He said he and the presr 
ident have not spoken to each 
other since. 

Beyond that task, Mr. Es- 
trada has had little work to do 
as vice president, and he has 
maintained the life of a movie 
star — up at 10 or 11 A.M.. 
into the office in mid-after- 
noon, and then, as often as 
not, a late night at the 419, a 
nightclub he owns. 

"Estrada has a perceived 
lack of work habits." Bern- 
ardo Villegas, an economist, 
said last year. 

In March, he met for lunch 
with a group of women jour- 
nalists, arranging for each of 
them to receive a bouquet 
when she arrived. 

Lunch was a series of jokes 
and evasions, recalled the 
columnist Domini Torre vill, 
and foe women loved it. 

* ’Much of what we remem- 
ber at that lunch was him 
smiling and making goo-goo 
eyes," she wrote in her 
column. 









































PAGE 6 


SATURDAY-SUNDAY, OCTOBER 4-3. 1997 


PAGE 14 


EDITORIALS /OPINION 


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Nuclear Recklessness 


SribllttC America Can Stand Up to the Rush to Help Iran 


Of all die nuclear powers, China has 
been the most reckless in exporting 
technology and materials that other 
countries can use to develop their own 
bombs. In the 1990s, Iran. Iraq. India 
and Pakistan have received Chinese 
help in evading international restrictions 
on nuclear trade. Iran and Pakistan soil 
receive Chinese assistance. 

Despite recent promises to exercise 
restraint, China remains the only nil- 
clear-weapons state selling material 
and technology to countries that close 
some of their nuclear installations to 
international inspectors. That should 
be reason enough to maintain restric- 
tions on exporting civilian nuclear re- 
actor technology to China. 

Yet there is strong support within 
the U.S. administration for lifting those 
controls in time for the visit of Pres- 
ident Jiang Zemin to Washington this 
month. President Bill Clinton should 
resist the pleas of diplomats eager to 
improve relations with Beijing and of 
exporters like Westinghouse. General 
Electric and ABB looking to tap the $2 
billion Chinese nuclear market. He 
should keep current restrictions in 
place until China shows responsibility 
on its own nuclear exports. 

Getting China to change its policies 
is hard. But Washington has a lever for 
seeking tighter export restraints. China 
is planning to expand its nuclear power 
program and wants to gain access to 
American civilian nuclear technology. 
That leverage can be deftly used by 
promising an early lifting of the Amer- 
ican export restrictions once tighter 
Chinese controls are established and 
verifiably in place. 


American companies may not sell 
reactors to China until the president 
informs Congress that Beijing is 
neither directly nor indirectly helping 
non-nuclear countries develop nuclear 
weapons. For the last 12 years, no 
American president has felt able to 
give such assurances. 

The adminis tration has been pressing 

China to observe stricter export safe- 
guards since last year's discovery that a 
Chinese military corporation was 
selling ring magnets, a bomb-making 
tool, to Pakistan. Beijing appears to 
have stopped shipping nuclear materials 
and technologies to installations that bar 
international inspectors. But that is not 
enough, since recipient countries can 
simply divert such nuclear contraband 
to onmonitored installations. The solu- 
tion is for China to refuse to sell to 
countries that bar inspectors from any 
facility. China must also establish better 
controls over the export activities of its 
military-run corporations. 

Those two steps would solve the 
Pakistan problem, but not the Iranian 
one. Iran keeps all its known facilities 
open to inspectors, but the Central In- 
telligence Agency reports it is secretly 
developing nuclear weapons anyway. 
China is also aiding Iranian efforts to 
make chemical weapons and medium- 
range missiles. American diplomats 
are trying to firm up Chinese promises 
to halt this dangerous assistance to 
Iran. But there wifi be no way of know- 
ing whether these pledges are reliable 
in time for the summit meeting. In an 
area this dangerous to international se- 
curity, promises are not enough. 

— THE NEW YORK TIMES. 


Inspecting the Food 


Global trade allows Americans to sat- 
isfy their appetites for strawberries in 
spring, apples in midsummer and as- 
paragus in autumn. Last year 38 percent 
of fruits and 12 percent of vegetables 
consumed in the United Stales came 
from foreign fields. 

But getting fresh produce year- 
round also means that consumers are 
exposed to foreign food production 
systems that may not be well regulated. 
Although the vast majority of the 30 
billion tons of food imported annually 
is wholesome, recent incidents of ill- 
ness caused by tainted Guatemalan 
raspberries and E. coli-cootaminated 
domestic meat and fruit juices have 
made food safety a public concern. 

Yet even as food imports have 
doubled since the 1980s, federal health 
inspections of imports have been cut in 
half. Since the Food and Dmg Ad- 
ministration samples less than 1 percent 
of food imports at the docks, tainted 
food can reach consumers undetected. 

In a sensible effort to tighten food 
safeguards. President Bill Clinton has 
asked Congress to give the FDA power 
to halt imports of fruits, vegetables and 
other food products from countries that 
do not maintain food safety standards 


equivalent to those in the United 
States. That would give the agency the 
same authority that tiie Agriculture De- 
partment has long exercised over im- 
ports of meat and poultry. Monitoring 
the agricultural and food handling 
practices in exporting nations will be 
far more effective than random checks 
at the border. The administration will 
seek S24 milli on in 1999 to send FDA 
inspectors abroad. 

The president is also asking gov- 
ernment agencies and representatives 
of the agricultural sector to draft stan- 
dards of good agricultural practices, 
such as keeping latrines away from 
vegetable fields and screening food 
workers for hepatitis, to guide both 
domestic and foreign growers. 

Foreign producers are already de- 
nouncing the plan as an unfair trade 
barrier. But there is no reason to be- 
lieve that asparagus growers in Mexico 
will be asked to live by higher stan- 
dards than growers in Washington 
state. In the long run. federal efforts to 
bolster consumer confidence in the 
wholesomeness of imported food will 
help the American appetite for foreign 
produce grow. 

— THE NEW YORK TIMES. 


Hong Kong’s Retreat 


Hong Kong's Beijing-appointed 
legislature has approved a new election 
law that restricts democracy in that 
Chinese city-state and raises questions 
about Hong Kong’s chances of remain- 
ing a successful, truly autonomous re- 
gion now that it has reverted from 
British to Chinese control. 

When China assumed sovereignty 
over Hong Kong's 6 million people, it 
promised to leave them more or less 
alone in their island of capitalism un- 
der a formula dubbed “one country, 
two systems." China's designated 
leader for Hong Kong. Tung Chee- 
hwa. further promised that Hong Kong 
would be more democratic than it had 
ever been — which, given Britain's 
mixed legacy as imperial ruler, 
shouldn't have been difficult. But Mr. 
Tung and the legislature have now 
moved in the opposite direction. 

The new law is complex, but its gist 
is simple: It will ensure that forces 
friendly to Beijing retain control. Pro- 
democracy forces, which were sup- 
ported by a majority of voters in Hong 
Kong’s last election, will be unable to 
exert influence commensurare with 
their popular support. 

The law accomplishes this in a vari- 
ety of ways. The legislature to beelected 
next spring will have 60 seats, but only 
20 will be directly elected. Thirty will be 
chosen by “functional constituencies.” 
such as professional associations and 
business groups. This is a system de- 


vised by the British, but in 1995 it was so 
broadly defined that 2.7 million res- 
idents were eligible to vote: the new law 
reduces the electorate to about 180.000. 
Thus, where previously garment work- 
ers each had a vote, now only garment 
companies will vote. Another 10 sears 
will be chosen by an 800-member elec- 
toral college, itself carefully controlled. 
Even the system for choosing the 20 
elected representatives has been 
changed to dilute the strength of the 
most popular, pro-democratic parties. 

The United States has substantial fi- 
nancial and political investments in 
Hong Kong, which has succeeded in 
large part because of the characteristics 
that set it span from China: adherence to 
rule of law, free flow of information, an 
uncorrupted bureaucracy and respect for 
private property. To the extent Hong 
Kong moves backward on democracy, 
these characteristics are threatened, and 
so is Hong Kong’s special magic — and 
the U.S. stake there. 

U.S. officials have stressed that 
Hong Kong’s adherence to democratic 
norms — and particularly, its fulfill- 
ment of a promise to hold free and fair 
elections — will go a long way toward 
determining U.S. attitudes toward 
Hong Kong and its masters in Beijing. 
Now the United States must decide 
whether to play along with the fiction 
that elections held under this law truly 
could be considered free. 

— THE WASHINGTON POST 


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N EW YORK — The secretary of 
state was saying that some of 
America’s friends and allies “don't get 
it. ” Here is Iran, a “prime example’ ’ of 
what she said was the world’s worst 
problem, the rogue states. Yet here is 
France “pumping money” into Iran; 
“it passes my understanding.” And 
here is Russia “transferring technol- 
ogy” to Iran. The United States has 
already identified it more precisely as 
missile and nuclear technology. 

Somehow, Madeleine Albright said, 
friends and allies think we can deal 
with Iran without supporting its ter- 
rorism, its attempts to acquire weapons 
of mass destruction and its “very fre- 
quent efforts" -to undermine Mideast 
peace efforts. They just don’t get it. 

But they do get what matters to 
them: a ciear idea of the American 
administration’s real intent. 

In her next comment at a meeting of 
the Council on Foreign Relations in 
New York, Mrs. Albright said: “I am 
very concerned that in Congress there 
seems to be a thought that we ought to 
cut off assistance to Russia to punish 
them for what is potentially this transfer 
of technology. And I hope this would not 


Bv A.M. Rosenthal 


happen, because we would be cutting off 
our nose to spite our face, because that is 
needed to help the reforms.” 

Europe knows there’s nothing 
frightening the United States can do to 
France, at the moment. Total, the 
French company investing heavily in 
Iranian gas. sold most of its assets in the 
United States just before closing the 
Tehran deal. Anyway, Iran is more 
important to France than penalties the 
United States could impose on Total 
under American law. 

As lagniappe, there is the pleasure 
French governments take spitting in 
America’s face and sneering at its se- 
curity interests. Said Prime Minister 
Lionel Jospin of the Total deal: “Per- 
sonally, I rejoice in it.” That will ring 
down the years, as his response to 
“Lafayette, we are here.” 

If President Bill Clinton refuses to 
impose sanctions on Total (and its Rus- 
sian and Malaysian partners in the gas 
deal) he would be defying the decision 
of Congress. The bill calling fix such 
sanctions was introduced, to his great 


credit, bv Senator Alfonse D ’Amain. 

Bur if 'Mr. Clinton allows Russia to 
get away with helping Iran build mis- 
siles and nuclear capability, that would 
be a threat to the entire Middle East — 
and to the all U.S troops stationed there 
now or in the future. America would 
not be cutting off its nose: it would be 
slicing its throat. It would be one more 
e xam ple why our friends and allies 
really do “get it." When it comes to 
sanctions that could bite, the admin- 
istration's teeth remain in the drawer. 

Another example: Beijing also has 
been peddling missiles and nuclear tech- 
nology. The Unitcd States has said so. 
But now' the administration announces 
its plant to “certify'” that China is com- 
plying with nonproliferation agree- 
ments! That will open the way for more 
American self-destruction: sales of U.S. 
nuclear technology and super-duper 
computers to the Chinese, for them to 
use and copy. (Speaking of self-destruc- 
tion, Israel’s sales to Beijing of military 
technology are a disgrace and a political 
booby trap.) 

America’s friends, allies and Jospins 
know billions in U.S. trade go lo the 
Chinese Army. How can we complain 


ahmi Russians and other Europeans 
making billions in strengthening San? 

.And already from Washington conic 
diplomatic and journalistic lum-totn 
messages that Israel is warning about 
Iranian missiles to divert world attention 
from the “pe.iee process*.” Also: If they 
an* so worried why don't the Israelis 
destroy Iranian missile bases as they did 
ihe Iraqi nuclear plant in I9S1? 

They will, they will, as soon as lnm 
moves all its missiles into one neat base 
instead of annoyingly scattering them 
across (he country. 

France and Russia hope in Iran to 
make more than money. Each yearns to 
replace America as the leading foreign 
player in the Midcast. Russia’s buildup 
ot tain. like its missile sales to Syria, 
fits in w ith those Moscow hopes — for 
years the particular goal or Yevgeni 
Primakov, the former KGB star who is 
now Russia's foreign Minister. 

But all right, given the U.S. saks that 
build up the Chinese Amtv, maybe the 
United States is a hypocrite about 
French and Russian deals with Iran. 
But let’s at least be hypocrites with a 
touch of self-preservation. 

Thr .Vf-ir K’ri Times 


U.S.-China S ummi t: Just How Much Fudge Will Clinton Eat? 


W ASHINGTON — Only 
his hairdresser knows for 
sure which tint President Jiang 
Zemin will choose for his sum- 
mit meeting with President Bill 
Clinton in Washington on Oct. 
26. But intelligence analysts bet 
it will be a dark shade of black 
to emphasize the Chinese pres- 
ident’s vigor and relatively 
youthful appearance at age 71. 

The fact that Mr. Jiang and a 
number of his elderly cohorts on 
the Politburo dye their hair (and 
in Mr. Jiang’s case his eyebrows) 
is not idle gossip about personal 
vanity. Their quest for the grace 
of youth is about power politics, 
a blood sport in Beijing. 

Chinese attention to surface 
detail is a good window on Mr. 
Jiang for Mr. Clinton as they 
begin final preparations for this 
summit meeting, the first U.S. 
visit by China's top leader since 
the Tiananmen massacres of 
1989. Mr. Clinton will be asked 
by Mr. Jiang — and by his own 
aides — to- go along with pre- 
tense far more serious. 

The main question at this 
summit will be: How much 


By Jim Hoagiand 


fudge is Mr. Clinton ready to eat 
to secure a friendship that 
already announces itself as dif- 
ficult, if not fickle? 

The answer ai this stage looks 
like: plenty. The administration 
seems prepared to hail a summit 
occurring at all as just short of 
miraculous, and highly worthy in 
and of itself. Silver Locks of 
Washington will cast no inquir- 
ing or suspicious glances at Inky 
Mane from Beijing. 

The hairdresser factor in 
Chinese politics is not a dirty- 
little secreL It is well known in 
China and among Chinese spe- 
cialists in the West that the 
Politburo leaders work hard and 
constantly to appear trim and 
fresh for the masses, using cos- 
metic devices to that eud. 
China’s leaders exalt tech- 
niques, not unknown in Amer- 
ican politics, to an ait form. 

They swim rivers at the pop 
of a photographer’s flashbulb 
— especially when they need to 
disprove reports they have 
fallen terminally ill. Chinese 


politics can be the ultimate sink 
or swim experience, notes a 
former American official who 
has met with Mr. Jiang over the 
years, observing several un- 
subtle tint jobs firsthand. 

The bigger pretense ahead in- 
volves the results of the summit 
In a low-key buildup, the ad- 
ministration seeks to focus at- 
tention on a false choice between 
lavishing ceremony on Mr. Jiang 
or isolating China altogether. 
Even a Beijing stylist couldn’t 
whitewash that bit of fridge. 

“The summit will regularize 
our dialogue," explains a se- 
nior official at the White House, 
where the hope is that the sum- 
mit will seal a bipartisan, post- 
Tiananmen consensus that the 
United States must be “en- 
gaged” with the world’s most 
populous nation. 

But that is a false tesL Like it 
or not, the United States is 
already ultimately engaged 
with East Asia’s only nuclear 
power, rising economic giant 
and a historic, proud empire. As 


Richard Nixon and Henry Kis- 
singer acknowledged in 1972. 
at first covertly lo themselves 
and then with ’galloping Sino- 
phiiia to the world. Communist 
China exists. 

The key question for Mr. Clin- 
ton at the summit is one of re- 
sults: What kind of official en- 
gagement will the United States 
have with China? Will that en- 
gagement be candid and reflect 
American ethical and moral val- 
ues as well as support business 
opportunities and short- term 
diplomatic imperatives? How 
can this summit contribure to 
both sets of priorities? Will 
American interests in the sur- 
vival of democracy in Taiwan 
and Hong Kong be made para- 
mount in Mr. Clinton’s conver- 
sations with Mr. Jiang? Or will 
this be the Clairol summit? 

The advance signs are not 
promising. While the Clinton 
administration is emphasizing 
China's desire to work with 
America if handled respect- 
fully. Beijing is emphasizing to 
Europe its desire to diversify its 
economic and diplomatic rela- 


tions. The European Union has 
just been told that China plans 
to shift a large percentage of its 
foreign currency reserves out of 
ihe dollar into the new euro 
when it is created in 1999. 

Prime Minuter Li Peng makes 
a point of telling American vis- 
itors, including presidential en- 
voys. that China will switch 
some of its purchases of Boeing 
airliners to the European Airbus 
to punish America. Mr. U be- 
lieves blackmail pays. 

Moreover, two oF the most 
important things about this 
summit will be things that do 
not happen: There will not be an 
address by Mr. Jiang to a joint 
session of Congress, an idea the 
Chinese pursued until they ap- 
parently concluded thar Mr. Ji- 
ang might get a cool reception. 
And as things stand now there 
will probably be no joint state- 
ment at the summit's end. 

Instead, the two leaders will 
field questions together at a news 
conference. That is die moment 
when Mr. Clinton should go on a 
completely fudge-free diet. 

The Washington Past 


Before Sitting Down, There’s a Dissident Who Must Be Freed 


W ASHINGTON — Two 
facts dominate the future 
of Chinese-American relations. 
One is the Ocl 28 trip to Wash- 
ington of President Jiang 
Zemin. Another is the fragile 
health of Wei Jingsheng, 
China’s Andrei Sakharov, who 
is being encouraged by his jail- 
ers to die of “natural causes'’ 
— orchestrated beatings and 
untreated diseases. 

This presents President Bill 
Clinton with a choice. He can 
demand Mr. Wei’s release as a 
condition of going through with 
the planned state visit Or he can 
exchange smiles and Cham- 
pagne toasts with China’s lead- 
er while China's most respected 
democrat lives, and may be dy- 


By Gary L. Bauer 


ing, in prison. If the president 
takes the latter course, he will 
go far beyond delinking 
Chinese trade from human 
rights. He will delink U.S. for- 
eign policy from American 
principles, and from decency. • 
It is the Chinese themselves 
who chose Mr. Wei as a central 
player in this unfolding diplo- 
matic drama. Soon after com- 
pleting a 14-year prison term, 
Mr. Wei was returned to cap- 
tivity just weeks after meeting at 
a Beijing hotel in February 1994 
with U.S. Assistant Secretary of 
State John Shaituck. The 
Chinese minister of foreign af- 
fairs accused Mr. Shattuck of 


interfering in “the internal af- 
fairs of China,” and Mr. Wei 
was sentenced to another 14 
years of prison. The adminis- 
tration treated this slap with a 
restraint indistinguishable from 
cowardice. Yet the circum- 
stances of Mr. Wei’s arrest cre- 
ate a special responsibility and 
an interest of honor for the 
United Stales to win his release. 

Once an ardent Maoist, Mr. 
Wei was disillusioned by the hu- 
man ruin of the Cultural Rev- 
olution. In his prison writings, he 
defends the rule of law against 
arbitrary authority. These letters 
reveal a man who is ironic, com- 
passionate, charming — and as 


Misguided Immigration Reform 


B OSTON — The United 
States is famously a coun- 
try of immigrants. It is also a 
country with a strain of na- 
tivism going back at least to 
the Know Nothing movement 
of the 1850s, anti-Calholic 
and anti-immigrant. 

That ambivalence was 
plainly felt by the bipartisan 
Commission on Immigration 
Reform, which, over the last 
five years considered how to 
create a more rational system. 
Its final report, submitted to 
Congress this past week, 
threaded its way between tire 
two themes: the open door and 
fear of immigrants. 

The report spoke in warm 
terms of what immigrants con- 
tribute to this country: “to its 
vibrant and diverse communi- 
ties. its vital intellectual and 
cultural life, its job-creating en - 
trepreneurship.” Yet it called 
for a sharp cut in legal im- 
migration starting five years 
from now- to 550,000 from the 
recent annual figure ofberween 
700,000 and 900.000. 

The commission indicated 
concern about harsh effects of 
changes made by Congress 
last year in immigration pro- 
cedures, eliminating the right 
of appeal in many cases. The 
report called for a new 
Agency for Immigration Re- 
view to assure legality and ac- 
countability, subject to review 
in the federal courts. It urged 
Congress to make clear that its 
changes in the rules were not 
meant to be applied retroact- 
ively, as Attorney General 
Janet Reno has ordered. 

But the report put major em- 
phasis cm enforcement against 
those who violate the rules. Its 


By Anthony Lewis 

most striking proposal was to 
abolish the Immigration and 
Naturalization Service and 
split its functions. Enforcement 
would go to a new agency in 
the Justice Department. The 
State Department would have 
the service role: passing on ap- 
plications for admissioo and 
naturaliza tion 

Thai proposal drew cheers 
from the chairman of die House 
appropriations subcommittee 
that handles INS funds, Harold 
Rogers, Republican of Ken- 
tucky. The INS, he said, “can- 
not control our borders, process 
immigrants and safeguard U.S. 
citizenship. We’ve seen tens of 
thousands of cri minals granted 
die most precious benefit our 
country has to offer: U.S. cit- 
izenship.” 

Mr. Rogers’s statement that 
“tens of thousands of crim- 
inals” were. granted citizen- 
ship by the INS was, to put it 
politely, mistaken. And it in- 
dicates a danger of the com- 
mission report. 

In fiscal year 1996, the INS, 
urged by Congress to reduce a 
naturalization backlog, gran- 
ted citizenship to 1,049.000 
applicants. It turned out later 
that 72,400 of those had been 
flagged by the FBI when it 
examined their fingerprints. 
That led to angry denunci- 
ations by Republican mem- 
bers of Congress. The INS 
then had an audit done by Peat 
Marwick. Of the72,400cases, 
16,400 showed an arrest for a 
felony of the kind that would 
make a person ineligible for 
naturalization. Most of those 


proved to be only arrests, not 
convictions, and hence would 
not bar naturalization. The 
audit, which is continuing, has 
so far found 300 cases where a 
convicted person was improp- 
erly naturalized. 

The Immigration Service 
did make mistakes. After a 
series of columns on INS mis- 
carriages of justice, I well 
know that it is not perfect But 
by the standards of perfor- 
mance in any large organi- 
zation, public or private, 300 
mistakes out of 1,049,000 
cases is not bad. And 300 is 
not “tens of thousands.” 

The danger of the tine taken 
by the Commission on Immi- 
gration Reform is that, if in- 
advertently. it will encourage 
the worst in American attitudes 
on immigration. It will encour- 
age members of Congress who 
at heart do not like immigrants. 
It will feed nativism. 

Bashing immigrants turned 
our to be had politics when the 
Republican Congress tried iL 
But there is a subtler way to do 
ic charge that criminal aliens 
are out of control, that the gov- 
ernment is incapable of solving 
the problem, that there must be 
a Draconian solution. 

The commission. 1 fear, has 
given credence to that kind of 
argument Splitting enforce- 
ment and service in tiie im- 
migration field would most 
likely lead to more punitive 
enforcement, and to less re- 
sponsive service from a State 
Department unequipped for 
the job. Changing an organi- 
zation chart will not solve 
what are complex, ambivalent 
human challenges. 

The New >V*nt Times 


immovable as a cliff. After tiie 
Tiananmen massacre, he ad- 
dressed Deng Xiaoping ns “pre- 
cisely the kind or idiot to do 
something foolish like this.” He 
sometimes signs his letters, 
“your most devoted hostile ele- 
ment." All this has earned him 
solitary confinement, physical 
and psychological abuse, un- 
treated high blood pressure and 
heart problems, along with the 
loss of nearly all his teeth. 

This is squarely in the great 
tradition of Mr. Sakharov and of 
Natan Sharansky'. Nelson Man- 
dela. Alexander Orlov and 
Yelena Bonner. Such dissidents 
serve an important historical 
purpose, exposing both the 
nature and weakness of regimes 
they oppose. In Mr. Wei’s suf- 
fering. China is revealed as a 
nation where gulags are of more 
than historical interest, and 
where the rule of rulers is jus- 
tified by a boot to the face. 

China experts on left and 
right will object that demanding 
Mr. Wei’s release before the 
summit would be a counterpro- 
ductive offense to Chinese dig- 
nity. But Mr. Wei has been re- 
leased once before, in an 
attempt to sweeten China’s bid 
for the 2000 Olympic Games. 
Though the bid failed and he 
was rearrested, the earlier well- 
timed release demonstrates that 
the Chinese government is not 
immune to pressure. 

Perhaps the time has arrived 
to stop talking of China's sens- 
ibilities and define those Amer- 
ican sensibilities C hinn should 
be wary of offending them- 


selves. Counting Mr. Wei’s 
freedom among these nonnego- 
tiables would accomplish two 
things. 

First, it would call to mind an 
earlier, more successful and 
more sophisticated model of di- 
plomacy employed by the Re- 
agan administration against the 
Soviet Union. An approach that 
managed to combine tactical 
flexibility with moral clarity, 
carrots with sticks. “My friend 
Mikhail” with “Tear down this 
wall.” If the past few decades 
teach anything, it is that Amer- 
ican influence is magnified by 
our ideological assertiveness. 

Second," demanding Mr. 
Wei’s release would clarity 
America's ultimate objectives 
in dealing with China — one of 
which must be a China where 
democrats don't rot in prison. 
To say otherwise would deny 
something important about 
America's identity and demean 
the sacrifice of a brave man, 
who is. if the past decade is any 
guide, charting China’s future 
from his prison cell. 

This, by itself, is not a China 
policy. Many other issues should 
be addressed by the two leaders 
at the summit and elsewhere. But 
securing tiie release of Mr. Wei 
would prove that there is at least 
one concession of principle the 
Clinton administration will not 
make, and at least one Chinese 
citizen it will not betray. 

The writer is president of the 
Family Research Council in 
Washington . He contributed 
this to The Washington Post. 


IN OUR PAGES: 100, 75 AND 50 YEARS AGO 


1897: Twain in Vienna 

VIENNA — Intellectual Vien- 
na has been in a slate of great 
mental excitement as to wheth- 
er a certain Mr. S. Clemens, 
who was expected in Vienna, 
would prove to be the veritable 
' ‘Mark Twain. 1 ’ Now all doubts 
are at rest — “Mark Twain” is 
here. Vienna is the last stage in 
the voyage of “Mark Twain” 
and family round the world. In 
all probability the next story 
from his pen will be on Austrian 
life. He intends going <tmong 
the people and seeing how they 
live. This he can easily do, as he 
speaks German very well and 
reads it still better. 

1922: Woman Senator 

WASHINGTON — Mrs. W. H. 
Felton, of Canersville, Georgia, 
has been appointed by Governor 
Hardwick as the first woman to 
be a United Slates Senator. She 
will fill the vacancy caused by 


the death of Senator Tom Wat- 
son. Although she will be a 
member of the senior legislative 
body, it is unlikely that she will 
ever sit in the Sermie chamber, 
because Congress will probably 
not be convened again until after 
the November elections and she 
will not stand for re-election. 

1947: Austrian Fears 

VIENNA — Foreign Minister 
Karl Gruber, in a slashing public 
attack on the Communist party 
and the Soviet Union, charged 
that Russia was keeping Austria 
in a state of nervous fear. The 
Foreign Minister also accused 
the Communists of placing Aus- 
tria ”in a period of brutal polit- 
ical blackmail.” Contributing 
further to the edgy feeling, au- 
thoritative Austrian government 
quarters charged that tiie y 00 ); 
munists plan to expose ‘ ’plots 
against the Red Army in eastern 
Austria, in an effort to discredit 
the Austrian government 


(y 





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INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, OCTOBER 4-5, 1997 


PAGE 7 


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QUEEN VICTORIA PASSES AWAY AT OSBOBNE HOUSE 



|jj A. January 23. 1900 B. January 23. 1901 C. January 23. 1902 


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Hitler Opens l ltk Olympic Games, With 5,000 Athletes 

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Johnson Quickly Sworn In as President 

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PAGE 8 




EVTERNATIONAL HERALD TRIBUNE, SATUR DAY-SUNDAE. OCTOBER 4-3. 1997 



Mi A Menagerie of Carnival Art 


By Matl Wolf 

L ONDON — Brass-band music, 
the sound of laughter and, best 
of all, those sturdy, fancifully 
colored creatures gently bob- 
bing up and down: in the pre-plastics 
age, they were the carousel, a whirligig 
of joy whose an could be said to con- 
stitute its own heady ride. 

For years, fairground an was used, if 
at all. to decorate restaurants that got a 
kitschy kick out of brightly colored 


$650,000. These pieces have a nostalgic 
appeal, reflecting an era of ornate 
carving and elegant Art Deco lettering 
that has since given way to tacky fiber- 
glass creatures festooned with canoon 
drawings. 

“You miss the fun,” said Peter 
Haylings, general manager of Wookey 
Hole Caves, the tourist attraction 
formerly owned by Tussauds that has 
housed the collection for almost 25 
years. “It*s a little bit sterile.” But if 
these animals can no longer be ridden, 
they can at least be admired as rep- 






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Ford! A wooden zebra is among the pieces of fairground art that will be auctioned. 


horses and centaurs propping up the bar, 
or maybe a barrel piano alongside the 
inevitable period jukebox. 

Carnival art, however, occupies its 
place within naive and folk an tradi- 
tions, as collectors are now starting to 
realize. Monday, in the Somerset village 
of Wookey Hole in the West Country of 
England, Christie's South Kensington 
will auction “The Tussauds Collection 
of Fairground Art,” named for the 
amusements company whose best- 
known attraction is the wax museum in 
London. 

It is believed to be among the largest 
single-owner collection ever to come on 
die market: 120 animals and 70 fig- 
urative pieces expected to fetch about 


resentative of a craftsmanship and at- 
tention to detail that — it hardly needs 
pointing out — are long gone. 

The collection encompasses a genre 
begun in the 1 830s and '40s that reached 
its peak between the 1890s and World 
War 1, changing with mechanization. 

One first notices the animals: pigs, 
cows and rabbits (and even a zebra) 
favored by the domestically minrteri 
French, alongside the cockerel, ostrich 
and “galloper" horse preferred by the 
more equestrian English, as befits the 
country thatproduced the animal paint, 
er George Stubbs. Elaborately carved 
and painted, the creatures spoke to a 
public appetite for a splendor at once 
immediate and utilitarian. While Lon- 


don had its grand Victorian pubs — the 
so-called gin palaces — to impress the 
worker for whom stately homes were 
off-limits, rural communities look 
pleasure in great gilt Baroque decor- 
ations. gushing forth music and steam. 

“These were popular entertain- 
ment.'’ said Olivia Bristol, the 
Christie's specialist in London who put 
the sale together. “They were not for the 
gentry, not for cathedrals and palaces. 
They were for traveling around from 
small tow □ to small town for the general 
public to spend a penny a ride.” 

The machine age brought 
attractions like the portable 
movie theater, or “bio- 
scope," that was a splendid 
miniature of the celebrated 
. movje palaces of the period. 

Among the pricier items is 
the wooden centerpiece of a 
bioscope facade showing a 
T charioteer flanked by winged 

horses decorated with the 
original gold leaf; a sale is 
8gjjfc>y ' estimated at between $95,000 
and $130,000. 

Other pieces of note in- 
clude a carved and painted 
giraffe and rearing stag, the 
latter with real antlers, both 
products of the Dentzel work- 
shop in Germantown, 
Pennsylvania. 

And though the American 
figures are among the more 
imposing — unlike European 
. ones built to travel. American 
fairground pieces tended to 
be permanent — no less de- 
lightful is an unusually grace- 
ful painted sea horse from 
Friedrich Heyn, who carved 
the imaginative mythical 
creatures for which die Ger- 
mans were best known. 

Or a British-made turkey 
with a double seat from the 
same manufacturers, Orton & 
cm* 1 *-. Spooner, whose exuberantly 
■d. colored walloping dragon pos- 

sesses me animation mostly 
limited nowadays to, well, animation. 

Many American pieces — also from 
the 1890s — were props imported to 
England for the West End premiere of 
the Rodgers and Hammers tern musical 
“Carousel" in 1950, only to linger on 
unremarked in some prop house or 
theater basement. 

It is only in recent years that fair- 
ground ait has even featured in any i 
major way at auction. A New York sale 
of carousel art at Sotheby's in March 
1990 brought in $1,018,345, though 54 | 
lots went unsold and only 68 percent of 
die pieces found a buyer. I 






: Yl ' 









mm 




-| V. QrJvr,.. 

“The Customs Point and San Giorgio Maggiore" by Turner at the Cini Foundation exhibition. 

Venice, the Republic and Myth 

An Anniversary Inspires 3 Exhibitions for the Fall 


By Roderick Conway Morris 

Iruemitiortal HeratJ Tribune 


V ENICE — More than a thou- 
sand years of Venetian Re- 
publican independence ended 
not in heroic defiance but low 
farce when, on May 12, 1 797, the Seren- 
issima's government, overcome by a 
collective fit of funk in the face of 
Napoleon's invasion, voted itself out of 
existence by 512 votes to 30 with 5 
abstentions. 

As the last doge, Lodovico Mania, 
disrobed, be handed bis servant Bern- 
ardo the linen cap worn beneath the 
ducal bonnet, saying: “Take it — I shall 
not be needing it any more.” Bernardo 
took his master at his word and pocketed 
it as a souvenir. 

The 200th anniversary of the demise 
of the republic has inspired three ex- 
hibitions this autumn, the surprise star 
of which is "The Sereoissima’s Public 
Statuary Museum: 1596-1797” at the 
Marciana Library in the Piazzetta op- 
posite the Doge’s Palace. 

Classical statuary is not the art form 
that instantly springs to mind at the 
mention of Venice, but die city has a 
superlative public collection, normally 
housed in the Archaeological Museum, 
which attracts few visitors. The enter- 
prise of the present show is to re-create, 
using contemporary engravings land re- 
cords, the original arrangement of the 
Statuary Museum as it was for 200 years 
in the vestibule of Sansovino’s Library 
building (inaugurated in 1560). The re- 
construction, containing many fine 
pieces, is an impressive sight, and nu- 
merous smaller items, including some 
wonderful bronzes and cameos (among 
the latter a quite extraordinary second- 
century B.C. head of Zeus from Eph- 
esus, the "Giove Egioco"), are on dis- 
play in the ornate main hall of the library 
beyond die vestibule. 


Matt Wolf wrote this for The New York 
Times. 


With first Telecom, call the Englishman on the left and pay 
as if you'd called the one on the right. 



T HE city's museum of Greek 
and Roman antiquities, foun- 
ded in the 1520s as one of the 
first public institutions of its 
kind, was made possible by a series of 
major donations that continued right up 
to the final days of the republic. The 
initial gift was from Domenico Grim- 
ani, patriarch of Aquilea, who died in 
1523, the same year as Antonio, his 
father. Antonio had been condemned to 
death and brought back to Venice in 
chains in 1499 for incompetence and 


cowardice, having losr a vital sea bartic 
to the Turks, but was a sufficiently wily 
politician to get himself not only re- 
habilitated but eventually elected doge. 

Domenico's bequest to the state of 
first-class sculptures and manuscripts 
was probably in part a gesture calcu- 
lated to improve the family's still-tar- 
nished reputation, but Domenico set a 
trend that soon made Venice's collec- 
tion one of the most significant any- 
where, and provided Titian, Tintoretto 
and many other Venetian artists with an. 
invaluable source of classical reference 
and example, which they could study 
without even leaving the lagoon. 

At first, the museum was in the 
Doge's Palace, but after a subsequent 
large bequest by Giovanni Grimani 
(Antonio's grandson), a new home was 
sought and the transfer of the museum to 
the library was completed in 1596. Al- 
though not originally designed as a mu- 
seum, Sansovino's vestibule proved an 
ideally bright, airy and architecturally 
noble backdrop for the ancient sculp- 
tures, as can now be seen once again, 
even if the display of so many pieces in 
dose proximity goes refreshingly 
against modem museum practices. (The 
special exhibition in the library hall 
continues until Nov. 2, but the statuary 
will remain in place until at least March 
1998.) Miraculously the Public Statuary 
Museum escapBd-'tbofpiflagc of the Na- 
poleonic occupation under the protec- 
tion of the remarkable Jacopo Morelli, 
who served as chief librarian and curator 
from 1778 until 1819, and in the course 
of repeated invasions and upheavals not 
only kept the collection intact, but even 
managed to add to its holdings. 

The Great Council Hall in the Doge's 
Palace, where for centuries Venice’s 
republican oligarchy deliberated and 
where they finally in panic decreed their 
own abolition, provides the appropriate 
setting for the opening part of “From 
Doges to Emperors” (until Dec.8). This 
exhibition, which has further sections in 
the neighboring hall and the Empire- 
style Napoleonic wing of the Corner 
Museum across Piazza San Marco, il- 
lustrates through paintings, engravings, 
popular satirical cartoons and other doc- 
uments the history of Venice from the 
fall of the republic, through alternating 
French and Austrian domination to die 
decades of Habsburg rule which led up 
to Venice's unification with the new 
Kingdom of Italy in 1866. There are 
some pertinent and evocative exhibits 


RELIGIOUS SERVICES 


here, but the show- will he more re- 
warding to those with some knowledge 
of the political ins and outs of the period 
than to someone coming entirely fresh 
to it. 

The late Professor S.E. Finer, in his 
monumental “History of Government 
from the Earliest Times," unequivoc- 
ally declared the system of Renaissance 
Venice “the best in the world," and 
indeed for stability, internal peace and 
social harmony the Venetian Republic 
in its heyday was without equal, and still 
being looked to as a model by the 
Founding Fathers of .America.* The 
Sercnissima was highly conscious of 
this image and did everything it could to 
broadcast it. giving rise to rhe'so-called 
' ‘myth " of V enice ' s political perfection 
— a myth, however, containing an un- 
usually high cuntent of reality. 

“Venice: From Stare to Myth" at the 
Cini Foundation on the island of Sun 
Giorgio Maggiore (until Nov.. 30) in- 
vokes the myth of Venice in its title, but 
makes little effort to delve into what lay 
behind it The first section, which con- ' 
tains some powerful images by Venice's 
leading Renaissance artists, including 
Carpaccio's majestic "Lion of St. 
Marie" and works by Titian. Tintoretto 
and Veronese, most closely addresses 
the exhibition’s putative theme and 
highlightshow effective Venetian artiste 
wero in giving visual expression to the 
political assumptions of the myth. This 
remained true even when Venice lost its 
superpower status in the era of Canaletto 
and Guardi, also represented here. 

T HE myth of Venice expired with 
the republic, and the many Itali- 
an and foreign artists who later 
came to the city were drawn 
entirely by its beauty and exoticism 
rather than its prestige, wealth and sym- 
bolic significance. But the exhibition 
seems to imply that this gave rise to a 
new myth, which causes confusion given 
that “die myth of Venice" is a term with 
specific historical connotations, rite 
show embraces the works of some 150 ; 
artists from the 15th to the 20th centuries 1 
and, although it includes canvases and 
sketches by major later figures, such as | 
Turner, Monet and Sargent, these ore not 
necessarily their best Venetian produc- 
tions. It remains, however, an interesting 
compendium of paintings of Venice — 
and a reminder of how difficult it is to 
compete on canvas with a city that is 
already a stupendous artwork in itself. 


AMSTERDAM 

CROSSROADS INTERNATIONAL 
CHURCH Interdenominational S 
Evangelical Sunday Service 10:00 
am & 1130 am/ Kids Welcome. De 
Cuserstreat 3, S. Amsterdam Info. 
020-641 8812 or020-6451 653. 
FRANKFURT 

English Speaking International 
Catholic Pariah, St Leonhard. Alte 
Malnzer Gasse 8. 60311 Frankfurt. 
Germany, Tel/Fax 069-283177, Mass 
steedile: Saturday 5 pm, Sunday. 10 
am Confseaions: 1/2 hour before Mass. 
Ctxxchtar 


i ... -4 ; 




01 46 98 20 50 


Oberstedten (Churcfi of 'SL Petrus 
Caseseus). He* Mass. Sun 1 ISO Past* 
Ft Sinens. 069-71911430 (home) or 
061 71 -25963 (Office). 

FRANCE/TOULOUSE 
HOPE INTERNATIONAL CHURCH 
(Evangelical). 4, bd de Ptorac. Colo- 
mwr. Sunday service 6:30 p.m. Tel: 
066274 11 55. 

FRENCH RMERA/CdTE D'AZUR 

MCE: Holy Trinity (Anglican), 11 me 
Bulla. Sur. 1 1; VENCE: SHugrfs, 22. av. 
Resistance. 9 am. Tel: 33 04 93 87 198a 

MONTE CARLO 

MONACO CHRISTIAN FELLOWSHIP 
Worship Service, Sundays: n am. 
9. rue Louis Notary, Monte Carta. 
TflL 377 92 165647. 

PARIS and SUBURBS 
EMMANUEL BAPTIST CHURCH - 56, 
me des Bons-Ratslns. 92500 Rueil- 
Malmaison. Worship; 6:45 * 11:00 
a.m. Sunday School. For more Inlo 
call 01 47 51 29 63 or check: 

HOPE INTERNATIONAL CHURCH 
Hotel Orion at Peria^a-Ddferae, B bd. de 
Neuiy. Wtarshjp Sundays. 930 am Rev. 

Dou^s MSer, Pastor, 01 43 33 04 06 
Mftro 1 to la Defense Esplanade 
SAINT JOSEPH'S CHURCH (Rorran 
CartSc). MASS N ENGLra-t Set 330 pm; 
Sun. 10 a.m.. 12 midday, 6:30 p m. 
50, avenue Hoche, Pars 8th. Tel: 
01 42272B56. Ifetar Chafes de&ufe - Elate. 
RELIGIOUS SOCIETY OF FRIENDS 
(QUAKERS). Unprogrammed (silent) 
meeting for worship. Sundays 11 am. 

Centre Qrakar titemattaiaL 114 bis, me 
de Vaugfratd. 75006 Parts. AS Welcome. 
4330145487423. 

TOKYO 

ST. PAUL INTERNATIONAL LUTHERAN 
CHURCH, near Bdabashi Sfin. Tel. 3261- 
3?40 l Wcrahip Service: 930 am Smdays. 
TOKYO UNHN CHURCH, near Qrruesnfc 
Subway 9a. TeL 34C0-0W7. Warship SerJces. - 
Swday - &30 ft 11:00 am.. SS a W5 am. 


SWITZERLAND 

BASEL CHRISTIAN FELLOWSHIP 
tngiteh-SpoaWng non-denorrwiational. 
TeT +4l6l 302 1674. Sundays 1030 
MMare Strasse 13, CH405B Basel 
ZURKH-SWTTZERLAND 
Er^SH-S PEA KING CATHOLIC 
MISSION; _ SL Anton Church, 
MmeryastraBe S3 Sunday Mass: 8:30 
8-^4 1130 am Services held in the 
crypto! St Anton Church. 

UMTAMAN UWERSALKT 

WE UNTTARIAN UNIVERSAL 1ST 
raJLOWSHP rotes yog tote 12 noon, 
Sqjtentaer 20 service. Thai Rev Johanna 
Backe will preach on , -Creating and 


care. Meditation and spiritual growth 
gf“^ 7 ^c | a | activities. INFO: 

TW EPISCOPAL CHURCHES 
OF EUROPE (Angfcxm) 

PARIS and SUBURBS 

E££5iE£^CATH=DRAL of the 
HOLY 7RMTY, Sun. 9 & 11 am, 1046 
am Sunday School for children and 


. mta uwn. I CL. OOVI 

Mefro: Grage V or Alma Atereesa 

FLORENCE 

ST JAMEgCHURCH, Sun 9 am. Rte I 
Rta U-Vfci Bernardo RuceBai 9, 

5012, Florence. Italy. TaL 3SW5 29 44 17. 

FRANKFURT 

CHURCH OF CHRIST THE KINQ 
lEphscopal/Angllcan) Sun. Holy 
rammu&n 9 l if 11 am Sunday School 
10:45 am. Sebastian Rhz 

GENEVA 

MUNICH 

2* ASCENSION, 

i j<5 a.m . Holy Eucharist ana 
Sunda y Sch ool. Nursery Care provided. 
Seybothstrasse 4. 81545 Munich (Har- 

BcfingL Qanwiy. TeL- 49B9 64 81 85. 


.PAULS Wm^THE-WALLS. Sun. 
, OBmHcteEuchalstFBBl: lODOam 

aSp/if Nuraoycara 
or 396474 3569.. 


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-I 




INTERNATIONAL HERAlJDTRfflUNE 
SATURDAY-SUNDAY, OCTOBER 


New York Art Gift 
Is a Mixed Bag 


The Collector: Degas We Never Knew ; . 


By Roberta Smith 

new York Times Service 


N 


EW YORK — Afterapro- 
longed courtship involving 
competing museums, die 
Museum of Modem Art 


wrapped candy; stacks of paper prin- 
ted with a hngbt bloc stripe; a trill- 
board-size photograph of a rumpled 
bed that suggests absent lovers and a 
little forest of tall .cones trade simply 


History may sot ultimately judge 
mzalez-Torres as great but the 


wua uKsiJanndassersweepstakeslast Gonzalez-Torres as great but the 
aQdm g of American subversive intent of tus art has per- 

^ from tiw coUectian haps never been moreevideac. In this 

Elaine Dannheisser and company be offers a breath of fresh 
ioonI n \? D “’ ^ orncr ' during die air, continually undercutting die no- 


lntoitmimal Herald Tribune 

N EW YORK — It seems hard to 
accept that we knew so little 
about an artist as famous as 
Degas.perhaps die best studied 
French painter. Yet the fascinating show 
that opaied this week at the Metropolian 
jolts some of our most basic ideas about 
tins towering master’s oeuvre. 

“The Private Collection of Edgar De- 
gas” (until Ian. 1 1) is a cross-section of 

prints with whi^he'amou^^hiirt- 
self, those by the painters he admired 
and those done by himself. The artist 



1980s and early ’90s. Now the mu- 
seum is sealing the deal with the 


planned to have them ail in a Degas 
Museum and took many notes for a 


stalled affair that spreads through half 
the museum’s third floor. 

The gift is mostly a good thing. In 
many instances, it makes up for die 
missed acquisition opportunities that 
are a fact of museum life, expanding 
the Modem’s accounting of recent 
art, especially from the 1980s but 
reaching as far ba c k 
as the 1960s while — — « 
also creeping, some- MOM A 
what tentatively, into 
the 90s. It reflects tlio OffTi 
collectors who were ine uan 


' < 


* * 


MOMA unveils 
“ouc^ the Dannheisser 
MX collection of 82 
modem works. 

above die living 


not dwell quietly 

above die living 

room couch or blend with the decor. 

Sculpture, video, installation and 
laige-scale photography outnumber 
paintings here, although there are 
several works by the painters Brice 
Marden and Robert Ryman. And 
generally artists known for abrasive, 
unsettling or butty statements pre- 
vail. Joseph Beuys. Jeff Koons, Mat- 
thew Barney, Sigmar Polke and 
Cindy Sherman are represented by 
three to 6 works each; the American 
sculptors Bruce Nauman and Robert 
Gober by no less than 10. 

High points include Barney’s 
“Drawing Restraint No. 7," with its 
ring of suspended video monitors 
showing tapes of wrestling satyrs in a 
small, chillingly lighted gallery; two 
small video works by Nauman in- 
volving doable monitors, and the 
many Gobers, which, installed in 
their own gallery, amount to a mini- 
retrospective. 

The gift also includes a number of 
impressive firsts for the Modem's 
collection: sculptures by Reinhard 
Mucha and Katharma Fritsch, a photo 
work by Richard Prince and a scaring 
painting of a rape by Sue Coe. 

Another standout is a group of 
works by Felix Goozalez-Tocres. who 
died in 1996 at the age of 38. His 
ephemeral and inexpensive idea of 
beauty, symbolic of the inexorable 
brevity of fife, is everywhere evident 
here. It is expressed in piles ofbrigbtly 


tion of masters and masterwozks that 
lies so undisturbed over most of this 
exhibition. 

Which brings ns to why the Dann- 
faeasser gift is “mostly ’* a good thing. 
Perhaps it’s poor form to look a gm 
horse m the mouth, but this collection 
reflects a consensus-driven taste 
rather than a highly personal sens- 
ibility or rigorous eye. 

Indeed, recent accounts of tire 
Dannheissers' coi- 
_ leering suggest that 

inveils • **** * emseIvcs 

of works as soon as 

iheisser ^y^cametmfash- 

l onab le, which may 
l of Q2, explahi the collec- 
J turn’s generic tone. 

VOrks. In addition there 
are low points and 

dead wood. Once 

you get beyond die numbers, many of 
the inclusions seem perfunctory. The 


Museum and took many notes for a 
catalogue to be. Neither came about, but 
as it stands, partially reconstructed for 
just three months, toe collection is il- 


Fcsgef about Degas toe Impressionist 
it tells the viewer. The master of the 


SOUREN MEUKIAN 


ballet scenes did not see fit to include any 
of them. Impressionist landscapes shine 
by their absence. In his “Musee Iroa- 


ginaire,” to borrow the phrase coined by 
Andre Mairaux, Degas jumps from the 
great classical tradition of portraiture. 
his overriding pas $k»n, straight into the 
advanced modernity of his time. 

Although he greatly admired Italian 
draftsmen of the Renaissance or Neto- 
erlandish painting of toe 17th century — 
Degas expressed outrage at the heavy- 
handed restoration to which the Louvre 
Museum subjected Rembrandt's ‘'Pil- 
grims at Eramans" and induced an art 
critic friend to write scathingly about 
the abrasive cleaning of Rubens’s 
“Henriette of France" — he made no 
attempt to buy any. The collector's only 
paintings predating the 19th century 
were a masterly portrait of a woman 
done in 1771 by Jean-Baptiste Per- 
remeau possibly inherited from his fa- 
ther, two El Grecos, which he acquired 
at tire instigation of his collector buddy 
Henri Rouart, and a painting of a horse 
by a follower of Aelbert Cuyp. 

What the collector turned to was the 
grand European portrait painting tra- 
dition as represented by the generation 
that preceded his own. Degas had 
boundless admiration for Ingres and 
Delacroix. But whichever artist they 
were by, the portraits be got hold of 
display fundamental kinship. Men and 
women alike either give toe viewer a 
searching look or seem absorbed in their 
inner thoughts as if all wanted toe an- 
swer to some troubling question. 

Bom the matching portraits of 
Jacques-Louis Leblanc and his wife, 
done by Ingres in 1823, to toe likeness of 
Abel Widmer painted about 1824 by 
Delacroix, or the large standing figure of 
the collector Loois-Auguste Schwiter, 
seen in a garden setting borrowed by 
Delacroix from Gainsborough or 
Thomas Lawrence, there is a common 
thread that goes far back into the Euro- 
pean tradition — probing the human 
soul, suggesting complex emotions. 


works by Sherman do not always 
show the artist at her best Not all the 


show the artist at her best Not all the 
Polkes are first rate, nor is every 
Nauman. And works by Gilbert and 
George, Lawrence Weiner, Dan Gra- 
ham, Anselm Kiefer and Richard 
Artschwager seem anomalous. 

It is a measure of how predictable 
and fashionable this collection is that 
a good, early Bartlett or a Salle would 
seem like eccentric taste in this con- 
text. And one longs for works by 
other far less-known artists working 
at various angles to the mainstream, 
just to disrupt the flow of anointed 
names. This job is largely left to Coe, 
whose fiery painting is relegated to a 
hallway. 

But a museum’s got to do what a 
museum’s got to do. and a collection 
like this is valuable not so much for 
what it looks like as a whole as fra- 
how it supplements works that die 
Modem already owns, some of 
which reflect a desire to move be- 
yond toe mainstream. 

All will be revealed as the museum 
integrates these works into its per- 
manent collection, if not soon, then in 
toe expanded Modem that hovers 
somewhere in the middle distance. 

“On the Edge: Contemporary Art 
Front die Werner and Elaine Dannhe- 
isser Collection" will be at the Museum 
of Modem Art through Jan. 20. 



sale held in 1891, Degas bought “1^ 
Belle Angele,” perhaps the most daring., 
picture from Gauguin *s Pont-Aven 
od in which die space is broken up into.^ 
unrelated areas under the influence of, 
Japanese woodblocks — the woman s" 
portrait appears like a large inset iso;, 
farad from toe rest of the composition by j 
part of a circular frame. 

Degas then followed this up with 
some’ of die harshest pictures dial 
Gauguin painted in Tahiti “Woman of 
the Mango," has an intense Fauve-like 
palette, “SuBring” is a very sculptural 
portrait of a cross-legged Tahitian wom- 

\ ij. _ . .hhk 


r 



away from the collector’s own art But it 
was not style or school that mattered to 
Degas, it was toe novelty. Gauguin’s 
“A Vase of Flowers’’ painted in 1896, 
one of the most beautiful still lifes of the 
1 9th century, cannot be conveniently 
slotted into a category. 

Ait at its most unconventionally vig- 
orous is what the painter-collector 
seems to have been looking for from his 
cOntemporaries. The two wonderful still 
lifes from van Gogh’s Arles period that 
Degas bought are not typical produc- 
tions. ha one, ‘Two Sunflowers," the 
blossoms fill the composition, framed 
by swirling strokes as in some anti- 
cipation of the Op Art of the 1960s. ' 


T HE art lover’s roving eye, 
forever ready for the rare and the 
unusual, covered a stupendous 
range. While he ignored Impres- 
sionism he acquired some extraordinari- 
ly bold prints, in etching and aquatint, by 
Pissarro. Degas took equal interest in the 
cartoons of Daumier, of which sneering 
overtones occasionally creep into his 

cabaret scenes, and in Japanese prints, of 

which be owned over 100. 

The collector’s sense of quality was A 
unfailing, matched by complete freedom 


“Head of a Woman " c. 1821 . oil on canvas, by Ingres. 


In a variant on this theme, Degas also 
sought small-format studies depicting 
contained distress. Jean-Francois Mil- 
let’s portrait of his young wife, un- 
comely and forcing a brave smile on her 


true of his two self-portraits, including 


one that may have been influenced by 
Ingres’s self-portrait It is even truer of 
his admirable group portraits “Mon- 
sieur and Madame Morbilli," painted 
around 1865, shows his sister and her 
husband, both nnsmiling , as if caught 
off their guard, in a moment of dis- 
traught surprise. 

This reaches an apex in the monu- 
mental “Family Portrait" also known 
as “The Bellelli Family." His sister 
stands, eyes lost in toe distance with a 
Holbein-like expression reminiscent of 
the German Renaissance painter’s “The 
Princess of Oeves." . * 

Had it stopped at that, the artist’s 
collecting would have been merely sur- 
prising. What makes it astounding is 
that his penchant for time-honored tra- 
dition was matched by an equally strong 
attraction to very modem trends. Degas 
acquired some of Manet's toughest pic- 
tures, such as the quasi-Expressiooist 
“Berthe in Moaming," and a very un- 
conventional Cezanne picture of 1883, 
* ‘Bather/ ' with a pre-Fauve touch to its 
contrasted colors. 

His choice of works by Gauguin and 
van Gogh is even more striking. At a 


of mind. While he acquired some very,, 
traditional portraits by Delacroix, Degas ‘ 


closed lips, Ingres's profile of a young 
woman looking up in dreamy resig- 


woman looking up in dreamy resig- 
nation as if painfully conscious of her 
premature replete ness are small mas- 
terpieces in that “intimiste" approach. 


T HE same search for psycho- 
logical studies drove Degas 
when be turned his attention to 
his contemporaries. From the 
American painter Mary Cassatt, who 
held him in such high reverence, the 
collector obtained what is perhaps her 
greatest portrait, “Girl Arranging Her 
Hair," painted in 1886. It is all about 
tremulous youth, unsure of itself, fresh 
and blooming, despite the girl's un- 
gainly features. Renoir's “Mademois- 
elle Henriette Henriot," done in 1874, is 
in a similar vein. A faint sketchiness 
aside, neither picture has much to do 
with Impressionism. 

The portraits that Degas painted and 
kept for himself belong in the same 
century-old European tradition. Thar is 


traditional portraits by Delacroix, Degas , 
also owned an early pastel landscape ; 
wito a windswept sky that is reminiscent 
of late 18to-centoiy British watercolors 
and a landscape in oil done about 1850 at { 
Champrosay, discreetly Romantic inthe ; 
Barbizon manner, if much terser and 0 
bolder. Degas’s small group of landr? 
scapes by Corot included some of the , 
greatest by toe artist, including a superb-., 
view of toe Roman Campagna. ; . 

. In short, as an art collector. Degas j 
comes out as a towering figure. Had his j 
own works left lying in toe studio on his 
death been edited out as Ernest Rouart^ 
the son of his old collector friend, had j 
been requested to do by Degas, toe% 
collection would have been matched by" 
a dazzling if unusual Degas anthology. 

Few exhibitions in recent years match 
this one for its wealth of revelations. 
With the accompanying book co-an- 
tbored by Ann Dimas, Colta lyes, 
Susan Alyson Stein and Gary Tinterow, 
it stands out as one of the Met’s most 
brilliant achievements. How France! 
passed.up on that one when it was 
offered the chance of hosting it is be- 
yond comprehension. 


BOOKS 


MALAGA BURNING 
An American Woman’s 
Eyewitness Account of 
the Spanish Civil War 
By Camel Woolsey. 
Introduction by Zalin Grant. 
204 pages. £22. Pythia Press. 
Reviewed by Samuel Abt 

L IKE toe “Guernica" 
painting, most books 
about toe Spanish Civil War 
are conceived in large splashes 
on broad canvases. Not this 
one. Gomel Woolsey, whose 
“Malaga Burning" was pub- 
lished in 1939 under a less 
graceful title and was quickly 
forgotten, was a miniaturist 
She described toe three-year 
war only from its beginning in 
July 1936 until that October 
and she wrote mainly about the 
village sbe was living in and 
nearby Malaga. Within this 
spare framework, she crafted a 
small gem. “Malaga Burn- 
ing" is barely 200 pages long 
but it embraces toe world. 

In that time, she writes, the 
world for most Spaniards was 
toeir village. “For a village in 
Spain is a unity; its inhabitants 
are like members of a dan, 
they have a dose and indis- 
soluble bond. ‘My village’ is 
constantly in the mouth of a 
Sp anish countryman, ft is 
more duo ‘my conany.’ " 

For Woolsey, an American 
poet, and her husband, toe 
English writer Gerald Bren- 
nan, their world was even 
smaller. It was their home, 
“our newly bought farm- 
house where we hoped to live 
cheaply and at peace on toe 
produce of our gardens and 
orchards, far from the trou- 
bles of Europe in this remote 
Iberia where nothing ever 
changed.” , 

She introduces the farm s 

workers — 

housekeeper, who was hard 
iirmm mankind in general and 


ARTS 


he were waking in the morn- 
ing of the world.” This bode 
is about them and, always in- 


cluding Woolsey and Bren- 
nan, a handful of others (Joan, 


nan, a handful of others (Juan, 
toe baker who is betray ed and 
slaughtered; a faceless crowd 
of fatuous English refugees 
from the war; a young jour- 
nalist who is upset that toe 
people of Andalusia are un- 
able to speak anything but 
Spanish, which he doesn’t; 
toe seven members of the 
Crooke Larios family who are 
in open hiding at the Wool- 
sey-Brennan home). 

The civil war arrives at the 
farm that night, when Maria 
wakes them to announce that 
Malaga is bunting. 

“ There’s been an upris- 
ing, ’ she said, ‘and they ’ve set 
fire to the city.’ ” The daily 
air is filled with planes drop- 
ping bombs. 

Woolsey follows toe events 
of toe war in ways that seem 
antique sow. She and Bren- 
nan take a bus into Malaga to 
view the damage, they walk to 
Torremo Linos to discuss with 
friends the desirability of 
leaving on an Fngh'ah des- 
troyer, they listen on a radio 
— ■ “a wretched little thing" 
on' which “all languages 
sounded alike and all incom- 
prehensible” — and they 

weigh toe rumors. Truckloads 

of ragtag troops loyal to toe 
republic pass their faun and 
leave behind impossible spec- 
ulation; Woolsey laughs at the 


acter. If she does not pardon 
her neighbors, she does not 
blindly condemn them either. 
This is toe way it was, she 
says, and not very different 
from tiie way it always had 
been, not only in Spain but 
also in England and other 
colder-blooded countries. 
This was “the worst kind of 
civil war, with religious feel- 
ing, class feeling, political dif- 
ferences, sectional feeling, all 
engaged — any one of which 
in the past has proved enough 
to embitter whole nations.” 

A dreadful war, then, like 
all wars, and nearly incom- 
prehensible 60 years later in 
Spain. At least along toe 
coast, Andalusia is today an 
entire strip of high-rise build- 
ings catering to toe vacation 
trade, among which passion 
for social justice is at best 
banked. Hideous Malaga 
should be burning, but for 
aesthetic, not political, rea- 
sons. Villages up the hills 
proliferate with toe television 
satellite dish. 

Franco’s forces woo the 
civil war and lurched tire 
country into a sort of mod- 
ernity, which has accelerated 
at waip speed since his death 
in 1975. It is easy to say that 
Woolsey, who returned to 
Spain and died in toe late 
1960s, would not know toe 


n 


, THE HOUSE and GARDENS of CLAUDE MONET-THE UU POND 

Open from Tuesday to Sunday 
from 10 am to 6 pm without interruption until Oct 3! 
dosed every Monday except May 19 and |ufy 14 
FF35 fbroamplete visit- FR5 for gardens 
FF20 for children 7-12, FF25 for adult groups 
Take west highway dir. Rouen, exit Bonn feres, Gtvemy by Vernon (EURE1 


Vicwir,"; Oetulwr Iftlt- l full. 1W? 




A L C r I o \ 
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Mmkr.j Ai l 
I HIoIkT lSt|>, 1V>7 


REMBRANDT AND HIS SCHOOL 

drawings from the Frits Lugt Collection fi*0BI octobre 2 
to 0 eve Bib re 30 dall* except on Mondays, from i p.m. to 7 pan. 
m me de Lille, Paris 75007 . , , • , . 

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October 17 - 23, 1997 

Daily: 11am-8pm. Sunday and Last Day: 11am-7pm 


Bonafft PtbvLww tor Memorial Sfoan-Kmtering 
Cancer Center. October 16, Wpm 


She bore witness to character, 
and that endures. 


Puretmuu wMft oonAhnc* mtlqumu, plctamr and worta at art tma 
78 of th* tap duahn tnrti 0tt UMlwf States and Europe. M Rwm 
An* And MtricOy vuttud tor quaOfe mithanUtHy and ewriRfan. 


a uctio n sales 


I N P R A N C E. 


gossip of the En glish who are 
fleeing the rape and plunder 


H ER bode arrives with a 
graceful introduction by 


upon mmuo nu in 

spent a “ 


Pila£“ a iSncholy^i^ 

who did most of the labor 


OiVUUMUA’ — " iiVah 

rique, toe gardraen You 
ooild seehim standing somt- 


times when he was notat wont 

oaring up into a flowering or- 
angenee with a&ort of 

static wonder on his face, as a 


they have witnessed or at least 
heard about freon other mis- 
informed Englishmen. 

“I was not really afraid of 
anything happening to our- 
selvesN she writes to explain 
why die decided to stay, “I 
did not even believe that there 
1 was any it WT T l, ^ ate danger to 
our Spanish friends. We did 
not faen know the honors 
which woe going to take 
place in Spain, the cruel 
murders by the terrorists 

among the parties of the Left, 

the brutal massacres by foe 
oarentisti on toe other side.” 

‘ Woolsey is especially good 
when riie tries to explain toe 
ferocity that swept Spain and 
to answer those who said this 
savagery was due to the vi- . 
olence of the Spanish char- 


Xx graceful introduction by 
toe American writer 7iiHn 
Grant, a neighbor and friend 
in Brennan’s old age. Grant 
says he has given toe bode 
“toe lightest and most mech- 
anical kind’’ of editing in hop- 
ing to salvage it from the for- 
gotten. “Gamel Woolsey’s 
voice,’’ he writes, “remains 
her own: as pure and dear as a 
mountain stream in the Sierra 
Nevada.’* Yes it is. 

ItttematUmol Herald Tribune 


THE SEVENTH REGIMENT ARMORY 

PARK AVENUE AT 67TH STRST, NEW YORK CITY 
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Boom 6 at 2:15 pm FURNITURE - OLD AND MODERN 
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teL: 33 (0) 1 53 30 30 30 - &x 33 (© 1 53 30 30 31. 


Tilt: SAN FRANCISCO 

FALL ANTIQUES SHOW 


I'wiu leU,,:: Tm./I Jivivi- Ni lu.ui Slminu- 


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Booms 5*6 at 2:30 p.ra. FURNTTUEE - WORKS OF ART - 
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BUSINESS/FINANCE 


SATURDAV-SUNDAY, OCTOBER 4-5, 1997 


PAGE 11 



More American Service in Europe 

United Slates ^ ^ 

hoM chains have 
become big 

pmancas 
throughout Europe, 
and* competitive 
threat to Europe* 
hoMtiers. 







~n 

\ Britain 



32 ' HOTELS 
Adding three by isss 

RADtSSON 

13 HOTELS 

Has 5% of London maritet 

HOLIDAY INN 

40 HOTELS 

Mostly in England 

SHERATON 

6 HOTELS 

Mostly in London 

^ yp Germany 

5 

Adding two more by 1999 

15 " 

Plan three more by 2000 

60 

Still growing 

3 

1, 050-room hotel in Frankfurt 

^ 4 Franca 

1 

On the Champs- lyses 

2 

Parts and Nice 

54 

50 are franchises 

2 

Both In Paris 

Italy 

0 

6 

12 

27 

...W. 


AH (ewer than 200 rooms 

Looking to expand 

5,120 rooms altogether 

H ^ Spain and 
\Ljt/ Portugal 

0 

1 

Lisbon 

6 

Wants to expand here, too 

8 

5 in Spain, 3 in Portugal 

•p. ■ Netherlands. 
Belgium and 
Luxembourg 

1 

Amsterdam 

2 

Brussels and Amsterdam 

24 

The main s European H.Q. 

4 

At least one in each country 


Scweic uiwtfcpripOTfli 'Includea three Cartson Country Inna & Suites, a Radeon subsidiary. 


iwn^ 

■WKtr- • 

IK .■**•#*-* •• 



Vt 

V S' ' \ - 


By John Tagliabue 

Stw Kirtt Tints Service 

NEW YORK — It's not that Sol 
Melia SA, a Spanish hotel chain, was in 
financial trouble. It's just ritar it wasn’t 
sufficiently Americanized 

Founded on the island of Majorca in 
the 1950s by a young hotel worker 
named Gabriel Escarrer, Sol Melia had 
. become one of Europe's fastest-grow- 
ing hotel empires by the early 1990s. 
But Mr. Escarrer, realizing that the com- 
petitive terrain was shifting beneath 
him, put his son Sebastian in charge. 

Sebastian Escarrer, who had held 
: > summer jobs as a teenager with Coca- 
VCola Co. in Atlanta and International 
— Business Machines Corp. in New York 
and had studied business at the Wharton 
mm School in Philadelphia, set out to over- 
...haul the company along American 
lines. 

He tightened management controls, 
created three brand names instead of 
one. separated the real estate holdings of 


the company from its managf-man t op- 
erations and last March, went public. 

Now the company is negotiating a 
strategic alliance with an American 
chain, he said, though he refuses to 
identify it. 

Mr. Escarrer acted so forcefully, he 
said, because he realized that profitable 
though Sol Melia was, it would get left 
in the dust in the 21 st century if it did not 
jump on the bandwagon driven by the 
American chains. 

"Either you go for a niche," he said 
in a telephone interview, "or, if you 
want to compete, you need to go glob- 
al." 

In the European hotel industry these 
days, everybody seems to be going 
global With American chains breathing 
down their necks, most hotel companies 
figure they do not have much choice. 
The way to go global they are dis- 
covering, is pretty much to follow the 
trail blazed by the American giants — 
with, of course, some graceful Old 
World twists. 


For die Tormented Economies of East Asia, 
Some Painful Decisions on Road to Recovery 


F - T. - 

F-W**"-' 


a* 


By David Roche 

H ONG KONG — The Asian 
storm rolls on. Currencies get 
weaker daily. Stock markets 
languish. Inflation is starting 
to rise, interest rates are at record highs. 
And in Thailand, where the mess start- 
ed, there is little sign that the 

politicians have got their act 
together. Although Thailand EtM 

recently endorsed a new draft 

constitution that it hopes will 
end "money and patronage politics,” 
that docs not mean that the fat is out of 
the fire. The real crunch will come 
when the Thai government tries to im- 
plement the International Monetary 
Fund's stringency measures and has to 
admit that its promise of painless ad- 
justment is a lie. t „ .. 

The cold facts are that Thailand has 
an internal and external debt crisis un- 
paralleled among developing countries 
and that Bangkok lacks the trained bn- 
mumrv or the sinale-pany structure 


w uqu v* iui it. ii rr. • — 

to 25 percent reduction in Thai living 
standards and two years of shrinking 
gross domestic product, plus massive 
weahh destruction, to liquidate the 
wasted assets and unredeemable lia- 
bilities of the Thai economic mess. 

Thailand's nightmare is ihe worst 
case of a regional crisis. East Ana s 
crisis is about excessive external defj 
kits and a stock of poorly remunerated 


assets. If assets were productive and 
earning enough, foreign-capital in- 
flows would be attracted to cover any 
cunem-account deficit. Adequate ex- 
ports would then be generated, and the 
stock of domestic debt would be both 
smaller and more generously covered 
by corporate profitability. But in most 
of East Asia, this is not happening. 


i /Commentary 


The governments of countries hit by 
external crisis — the Philippines and 
Indonesia — will try to implement a 
policy mix of bigger fiscal surpluses 
and higher interest rates to stabilize 
their currencies and attract new foreign 
capital. They should also begin to de- 
regulate their economies, making them 
more expon-competitive. 

If they do, the shakeout in economic 
growth, unproductive assets and finan- 
cial markets will be quite vicious. But 
normal returns to investors and more 


the eventual rewards. In two years, the 
country’s old “economic tiger” status 
could return. 

Countries, such as South Korea and 
Malaysia, that have a domestic-asset 
bubble financed predominantly by 
their own hanks will be tempted to act 
differently. They are likely to pursue 
low interest-rate policies, to ny to keep 
the economy moving by maintaining a 


good measure of infrastructure proj- 
ects, despite high-profile announce- 
ments tome contrary. And they may try 
to keep their bu r g eo nin g current-ac- 
count deficits under control by pro- 
tectionist measures to limit imports. 

The resuh will be a less competitive 
domestic and export economy. The 
cathartic clean-up that their economies 
need will dude them. Their 
currencies will stay weak. 
Their economic downturn will 

last longer. Return on assets 

will remain low. Foreign-in- 
vestor confidence will not return eas- 
ily. So. expect a permanent downgrad- 
ing of stock-market valuations. 

And then there is a special category 
of hell for countries that have both an 
external and a domestic capital crisis. 
Thailand is da only confirmed case so 
far — though the wrong policies could 
ultimately put Indonesia, the Philip- 
pines and even Malaysia in there too. 

Once in this terminal ward, govern- 
ments are trapped. On the one hand, 
they try to stabilize their currencies with 


foreign On the other hand, they 
want to print money to bail out their 
domestic financial sector. These are 
two mutually exclusive objectives that 
Thai bureanaats and politicians still 
have problems deciding between. 

Mr. Roche is managing director of 
Independent Strategy, a global invest- 
ment research consultancy. 


CURRENCY & INTEREST RATES 


tmtm 



-irtVite'rr I 




1 A.* 1 .'".v 1 ” 



















Amid Turmoil, Rupiah Plunges 
And Shares Weaken in Jakarta 


European Hotels, American Style 

U.S. Chains Have Forced a Transformation in Continental Market 


By Thomas Fuller 

Special to the Herald Tribtaie 

KUALA LUMPUR — The Indone- 
sian rupiah plunged 9 percent to an all- 
tune low against the U.S. dollar Friday, 
one of the biggest one-day drops since 
the market turmoil shaking Southeast 
Asia began in July. 

Compounding the bad news, Indone- 
sia’s already battered stock market 
dosed down nearly 4 percent on Friday, 
with the Composite Index ending the 
day at 515.48. 

Indonesia’s central bank governor, 
Sudradjad Djiwandono, said Friday that 
the need by Indonesian companies to 
repay offshore loans had contributed to 
the currency’s woes. 

"We must admit that the rupiah con- 
tinues to weaken,” he said. "The as- 
sessment suggests that dollar demand 
remains strong because some importers 
have offshore loans which have to be 
repaid.” 

Others were more blunt in their as- 
sessments. “With the currency now 
down more than SO percent since the 
beginning of the year, we have now 


entered a major currency crisis," Steph- 
en Rogers, director of UBS Securities, 
told Reuters. 

Analysts cited longer-term concerns 
over the high level of unhedged In- 
donesian corporate debt and the risk of 
systemic bank failure as reasons for the 
currency's weakness. Overall, Indone- 
sia is estimated to have $60 billion in 
private-sector debt 

"The fear of corporate defaults is 
rising overseas," Ishak Ismail a market 
analyst at Institute for the Development 
of Economic Analysis, an independent 
consulting group, told Reuters. 

The rupiah at one point dipped to 
3,720 against the dollar Friday. 

Other currencies in the region were 
relatively sheltered from the rupiah’s 
plunge, with the exception of the Malay- 
sian ringgit, which fell 2 percent on 
news that Moody’s Investors Service 
Inc. had cut its credit rating on two big 
Malaysian banks. The currency fell to 
3.3825 against the U.S. dollar from 
Thursday’s close of 33150. 

The announcement by Moody’s that 
it had placed Malayan Banking and Pub- 
lic Bank under review for a possible 


downgrade came a day after the U.S. 
ratings agency downgraded for the 
second time this year Thailand’s long- 
term debt rating and lowered its long- 
term foreign currency deposit rating. 
But the bant was relatively stable, fall- 
ing slightly to 35.77 against the dollar 
from Thursday’s close of 3535. 

Months of steady decline in the value 
of most of Southeast Asia’s currencies 
may have hurt foreign portfolio investors, 
but analysts said the decline could be a 
windfall for companies seeking to make 
long-term investments in region. 

"On a historic perspective, they are 
looking extremely cheap," said Tony 
Edwards, a broker at Caspian Securities 
Ltd. in London, referring to the region’s 
currencies. He said Caspian had found 
that the devalued currencies had 
provided export-based industries with 
s ignifi cant competitive advantages. 

Robert Coombe, executive director of 
Commerce Asset Fund Managers in Ku- 
ala Lumpur, said, * ‘If you’re a long-term 
investor here looking at setting up a 
factory, I don’t think you get too hung 
up on short-term movements in the cur- 
rencies.” 


The Continental chains are making 
the shift at a time of great turmoil in the 
European hold industry. Construction 
is booming, both ax the high end and the 
low end of the market, and a wave of 
mergers and acquisitions is sweeping 
Europe as hotel grains search out allies 
to strengthen their market positions. 

Yet, because die European hotel busi- 
ness remains do minate d by independ- 
ents — 75 percent of the trade, can- 
pared with just 25 percent in the United 
States — it remains vulnerable to pen- 
etration by American chains such as 
Marriott International Inc., Sheraton 
and HFS Inc., which manages Howard 
Johnson, Days Inn and Ramada hotels. 
Sheraton is a unit of ITT Corp. 

" Europe is a very fragmented mar- 
ket," said Nigel Reed, an analyst with 
Paribas Capital Mskets in London. 
“Booking systems, reservation sys- 
tems, yield systems, all are in the Dark 
Ages." 

See HOTELS, Page 15 


Seoul Halts Some U.S. Beef Imports 

Officials Report Finding E. Coli Bacteria on Meat From IBP 


CaupaalbyOirSmffFnimDapaicha 

SEOUL — South Korea has suspen- 
ded imports of beef from Nebraska after 
saying it found E. coli bacteria on meat 
bought from IBP Inc., but the South 
Korean Embassy in Washington said 
Friday it had no information about the 
report. 

“As far as I know, it’s not true," 
Chan Joon Sohn, the embassy's agri- 
cultural attache, said. "I should know 
about something like tins." 

South Korean quarantine officials 
said they detected E. coli bacteria last 
week on the surface of the imported 
frozen and sliced beef. 

The government immediately 
ordered a local importer to return or 
destroy 18 tons of Nebraska beef kept in 
warehouses and launched expanded 


tests of all beef imported from that state, 
according to South Korea's Yonbap 
News Agency. 

Len Condon, vice president for in- 
ternational trade of the American Meal 
Institute, a Washington-based trade 
group, said the group had lodged a 
protest with South Korea. 

‘ The serious part about this is there’s 
no justification, no scientific basis, for 
saying ‘no beef from Nebraska,’ ” he 
said. 

"Both governments are trying to co- 
operate to resolve this issue," the South 
Korean official said. 

IBP said it had not been informed of 
an import suspension by either Sooth 
Korean or U.S. officials. 

"We continue to produce and ship 
products to Korea,’ ’ GaryMickelson, an 


IBP spokesman, said at the company’s 
Dakota City, Nebraska, headquarters. 

U.S. Department of Agriculture of- 
ficials said the presence of E. coli on the 
outside of the beef did not violate U.S. 
regulations because the organism would 
be killed in cooking. 

It would be a violation only if the 
bacteria were found in ground beef, 
where the organism might be mixed into 
the center of the product and possibly 
escape the high heat required to kill it, 
they said. 

U.S. quarantine experts plan to travel 
to South Korea on Sunday for inspec- 
tions, Agriculture Minis try officials 
said. 

South Korea is the fourth-largest mar- 
ket for U.S. beef, with exports valued at 
$244 million in 1996. (AP, Bloomberg) 


list fall. 



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PAGE 12 


EYTERNATIONAL HERALD TRIBUNE* SA 31 RDAV-SLNDA 1 , OCTOBER 4 - 5, 1997 


THE AMERICAS 


Investor’s America 


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Boeing Shares Drop on Production Crunch 


Bloomberg News 

SEATTLE — Boeing Co. said 
Friday it was freezing production of 
its 747 and 737 jetliners for about 
three weeks to catch up with crip- 
pling labor and parts shortages. 

The moves indicate how badly die 


it pushes production to record 
rels to fill the hundreds of orders 


company was caught off guard by 
in aircraft orders. 


the global boom 
The world’s largest airplane maker 
will deliver about 335 jets this year, 
down from the 350 estimated earlier, 
and its fourth-quarter earnings will 
be lower than expected. 

Analysts said Boeing’s an- 
nouncement showed that its pro- 
duction problems were far more 
severe dun executives had let on. It 
may take Boeing much longer than 
expected to get costs under control 


as 

levels' 

it has received from the world's 
airlines. 

“They have been soft-pedaling 
what their problems are, and they 
are more severe than we anticip- 
ated,” said Paul Nisbet, an analyst 
at JSA Research in Newport, Rhode 
Island. 

Boeing shares fell 50 cents to 
close Friday at $52. 

The company's biggest problems 
have been in making its jumbo jet- 
liner, the 747. That production line, 
in Everett, Washington, has been 
behind schedule for much of this 
year, forcing Boeing io take workers 
from other lines to try to catch up. 

The 747 line will be halted, giv- 


ing workers an opportunity to com- 
plete work on airplanes already in 
production, but preventing the com- 
pany from starting construction of 
new planes, Boeing said. 

Boeing will take similar steps in 
Renton. Washington, where it 
builds the smaller 737 jetliner. Work 
on 737s already in production will 
be completed as parts become avail- 
able. No new 737s will start down 
the line for 25 days. Boeing had 
orders for more than 800 737s on its 
books as of the end of August 

Parts shortages are the biggest 
problem in Renton, while labor 
shortages are the problem in Ever- 
ett, Boeing has said. 

Boeing suffered another setback 
in Renton when it discovered in 


flight tests that its new 737-700 
needed modifications to the tail sec- 
tion that will delay its certification 
by regulators. . 

Boeing shares have languished 
this year as the-cost of hiring thou- 
sands of workers cut into comings. 
Analysts had been expecting Boe- 
ing to get production up and costs 
down, thereby improving profits, by 
early next year. Now, the benefits of 
booming sales may not come until 
early 1999, analysts said. 

Boeing has hired about 15.000 
employees this year, after adding 

21.000 last year. It picked up 

64.000 workers when it bought Mc- 
Donnell Douglas Corp. last summer 
and is trying to use some of them to 
solve its problems. 


WorldCom 
Could Shed 
MCI Service 


By Mike Mills 

UlasnietMt faaf Sttykt 


T" „ i- 




Oil Prices Cut a Rally, but Stocks Post Gains 


Source: Bloomberg. Reuters 


Inwmimmi Herald Tribune 


Very briefly: 


U.S. Jobless Rate Remains Steady 


WASHINGTON (AP) — The U.S. economy created jobs at 
a modest pace in September, keeping the unemployment rate 
unchanged at 4.9 percent, according to government figures 
released Friday. 

Though growing with less momentum than earlier this year, 
the labor market still favors job-seekers, economists say. 

“The labor market is strong but not as strong as it has been, 
which suggests the blistering pace of U.S. economic growth 
may be slowing down.’ ’ said Allen Sinai of Primark Decision 
Economics. He added that there was “no reason" for the 
Federal Reserve to raise interest rates to ward off inflation. 


CanffUedbfOvStfFnmDiipaerta 

NEW YORK — Stock prices 
held on to slight gains Friday after 
giving up an rally rally as rising oil 
prices fanned concern that inflation 
may not r emain dormant for long. 

Rising tensions in the Middle 
East sent the price of oil to more than 
$23 a barrel, its highest in almost 
eight mouths. Higher energy prices 
increase the cost of goods and ser- 
vices, which spurs inflation and 
sends interest rates higher. 

“The potential inflation that 
might result from higher energy 
costs is catching the attention of 
investors,” said fames Margard. 
chief equity officer at Ranier In- 
vestment Management, which over- 
sees $4.6 billion of assets. 

The Dow Jones industrial aver- 
age, down as much as 71 points at 


975.47. The Nasdaq composite in- 
dex finished at 1,715.85, up 13.44, 
after rising to an intraday record of 
1,725.85. 

“We saw a little too much en- 
thusiasm about the economic news 
eariy in the day,” said Paul Hen- 
nessey, head trader at Boston Part- 
ners Asset Management, which 
oversees $12.5 billion in assets. 
“Stocks moved back in lockstep 
with bonds.” 

Crude-oil futures prices climbed 
$1 28 to $23.05 a barrel after the 
U.S. government sent the aircraft 


carrier Nimitzto the Golf. The move 
was aimed at bolstering security for 
the no-flight zone in southern Iraq in 
response to recent raids on Iraq by 
Iranian jets. 

“Every rime you get some saber- 
rattling.” you see a decline in op- 
timism, said Steve Vielhaber, who 
oversees about $35 billion in fixed- 
income securities for Bank of Amer- 
ica in Los Angles. Rising prices of 
gold and other commodities also 
hurt bonds, traders said. 

When bonds started to Mi, 
traders and investors also took the 


Microsoft: Gaming on Netscape? 

REDMOND, Washington, (Bloomberg) — Microsoft 
Corp. said Friday that more than 1 million people bad down- 
loaded its Internet Explorer 4.0 program in the first 48 hours it 
was available. 

Forrester Research Inc. said it expected Microsoft’s In- 
ternet browser to capture more than 50 percent of the market 
by the middle of pext year, up from 25 percent to 30 percent 
now. That would eat into Netscape Communications Corp.’s 
share of 65 percent to 70 percent 


US. STOCKS 


• Kinetic Concepts Inc, which makes special beds for people 
with serious health problems, agreed to be acquired by Fre- 
mont Partners LP and Richard C. Blum & Associates LP 
for $850 million to $875 millio n 


• Anheuser-Busch Cos. co nfirme d that the Justice Department 
was looking into its distribution practices amid allegations that 
the brewer was trying to squeeze smaller rivals off the market. 


• The New York Times Co. is selling six tennis, sailing and 
ski magazines to Miller Publishing Group LLC of Los 
Angeles. Terms were not disclosed. Bloomberg, ap 


one time, closed Friday at 8,038.58, 
np 11.05. Earlier in the day, a rally 
sent the 30-stock average up more 
than 100 points, to as high as 
8,143.44. 

The jump in ofl prices overshad- 
owed an unexpectedly weak Septem- 
ber jobs report, which investors in- 
terpreted to mean that growth was 
not about to speed up inflation. 

The yield on die benchmark 30- 
year Treasury bond rose as high as 
6.35 percent after falling to a 19- 
month low of 6.19 percent on the 
jobs report It was at 6 JO percent in 
late trading. Falling yields benefit 
stocks by making it less expensive 
for companies to borrow money. 

The Standard & Poor’s 500 Index 
rose 4.58 to close at 965.04 after 
touching an intraday record of 


Weak Economy Hits Yen 


Agence Frtznce-Presse 

NEW YORK — The dollar fell 
against the Deutsche mark Friday 
as the U.S. unemployment rate 
remained steady, but It rose 
against the yen amid a poor out- 
look for the Japanese economy. 

The dollar was at 1.7560 DM in 
4 P.M. trading, down from 1.7730 
DM on Thursday. It was also at 
122.095 yen, up from 121.605 
yen. 

Against other major currencies, 
the dollar was at 5.9030 French 
francs, down from 5.9580 francs, 
and at 1.4475 Swiss francs, down 
from 1.4545 francs. The pound 
rose to $1.6160 from $1.6159. 

Many economists had expected 
die unemployment rate to drop, 
which might have raised feats of 
inflation and triggered specula- 
tion that U.S. interest rates would 
rise. Increased rates mak e secu- 
rities and deposits denominated in 


a currency relatively attractive. 

“The Japanese economy is very 
weak, and investors are unlikely to 
sell the currency of one of the big 
industrialized countries to buy 
yen.” said Eric Fisbwick, an ana- 
lyst at Nikko Securities. 

. The pound fell against the mark 
amid signs that Britain was keep- 


FORE3GN EXCHANGE 


ing the door open to participation 
in the European single currency. 

“Dealers are saying that in that 
case, British interest rates will not 
be increased, because member- 
ship implies that rates must con- 
verge,” Mr. Fish wick said. 

Rates in France and Germany 
are far lower than in Britain, 
where the economy has experi- 
enced several years of strong 
growth. The pound fell to 2.841 1 
DM from 2.8558 DM in London. 


opportunity to lock in recent gains, 
especially with the U.S. economy 
remaining strong. 

“I’d be a better seller than buy- 
er” at the lower yields reached Fri- 
day. said John Burgess, who helps 
oversee $70 billion in assets at 
Bankas Trust Global Investment 
Management. “Despite the softer- 
than-expected number today, the 
economy's not rolling over.” 

Adding to the markets' uneas- 
iness, General Motors and Ford re- 
ported higher vehicle sales in 
September — another hint of in- 
flationary pressures in the economy. 
Chrysler said Wednesday its third- 
quarter sales were off 14 percent. 
Shares of Chrysler were higher late 
Friday, while GM and Ford shares 
were lower. 

Bank issues were higher after the 
jobless report, with JJP. Morgan, 
Citicorp. BankAmerica, First Union 
and Bank of New York leading the 
advance. 

Among active issues. Cablevi- 
sion Systems and At Home rose as 
investors bet that Cablevision’s pur- 
chase of a 9 percent stake in the 
Internet-access provider was anoth- 
er big step in the growing conver- 
gence between the two industries. 
The companies said late Thursday 
that Cablevision, America’s sixth- 
largest cable provider, would spend 
$5 J milli on for the stake in At 
Home. 

Advanta shares surged as in- 
vestors speculated that the troubled 
credit-card company would be sold, 
traders said. Advanta, the ninth- 
largest U.S. credit-card issuer, has 
been a takeover target since 
March. (Bloomberg, AP) 


MCI Communications c_ 
could jettison its approximately 
million residential tang-digtai_ 
customers and focus sofelyonmoe 1 
profitable business customers if a 
proposed $30 fci llion buyout of Mci - 
goes through, according to a top 
official of die company that would • 
make die purchase. 

John Sidgmore, yicechahmanof j 
WorldCom Inc., said the residential ■ 
customers probably would be trazo- ! 
fared to other long-distance j- 
companies, potentially including m 
the regional Bell companies. ™ 

Under this scenario, calls would 
still be carried by WoddCom and 
MCI wires. But the job of setting 
rates, providing operators and 
billing the customers would belong 
to the other companies. The cus- 
tomer would never hear the MCI 
name or deal with the company. 

WorldCom would “sdj” MCI 
customers to other Hang-distance 
companies, which would pay for 
rights to serve established accounts. 

[WorldCom issued a statement 
Friday saying it would keep all of 
MCI's customers after their trans- 
action was completed, Bloomberg 
News reported. 

[“WorldCom will not abandon 
MCI’s residential long-distance 
customers,” the company said.] 

Earlier. Mr. Sidgmore said that 
initially WorldCom would “market 
to consumers just like MCI does.” 

“On the other hand,” he added, 
“our strategy is not in the consumer 
business. It’s very difficult fra us to 
find a way to make economic sense 
out of the advertising budgets, the 
customer-service budgets, et cetera, 
required to be in the consumer busi- 
ness. We might be wilting to let 
somebody else do the retail mar- 
keting of that consumer business.” 

On Wednesday, WorldCom 
made an unsolicited offer for MCI, 
throwing into turmoil a year-old 
plan by British Telecommnnica- 




- 


..... -r-. 


dons PLC to buy die Washington- 
t. World- 


based long-distance giant. 

Com is offering roughly $9 billion 
more than BT’s last offer. 

MCI officials, who met Thursday 
tojplan a reaction to WorldCom’s 
offer, declined to comment on Mr. 
Sidgmore’s remarks. 

MCI's stock closed at $36. 1875, 
up 43.75 cents, while WoridCom's 
shares rose 625 cents to end at 
$37.9375. 


AMEX 


U. S. STOCK MARKET DIARY 


INTERNATIONAL FUTURES 


Friday’s 4 P.M. Close 


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Dow Jones 


*4 

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Most Actives 
NYSE 


Oct- 3, 1997 


High Lo* Luteft Qi9» Oplrd 


Low Lotetf Qtg* OpM 


High Lot* Idol Chgc OpM 


High l» Lotasl Oige OpW 


tadu 812UI 014443 795U7 fgHf *11-95 
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Finance 

SP500 

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4918S 485L04 49253 489.15 
20805 2D6J7 20X94 207.64 
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War 98 275 SAM 273ft -7ft 64578 

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JIH98 283ft 274 222V) +8 294170 

274 249ft 275ft «5V* 2156 

275ft 367ft 274ft .5ft 12199 

284 2» 284 .2 134 

Ed. taftes NJ*. Tten Mies 39-462 
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1 £000 •*.- ante par b. 

May 97 7S5D 713) 7450 +145 17,423 

JaiM 7U5 7425 77 JO +1JS 10804 

War 9B 81.10 79J0 80.05- .1.15 7,127 

Hat 98 8150 8200 82J0 +1.15 L731 

Ed. softs ILA. Tten ate 2482 
Tim upon M 38L332 off 404 


18-YEA* FRENCH SOV. BONDS (MATtF) 
FFSXUOO . it* of ISO rd 
Dec 97 lOla KKLCi D046 +030 134542 
War 98 99 JO 99.40 99J6 +0J3 4425 

Est. sales: 142052. 

Open tat: 140.987 Op W19. 


Sea 98 9525 9510 9524 *414 57,475 

Dec 9* 9523 9509 9523 +214 42206 

War 99 9514 9499 9511 +0.14 22111 


Ed. yatei: 85309. Pro*. Mar 120448 
Pnv. open InL- 442.956 up 2414 


Sep 98 
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38592 1391* 
90924 1909X1 

&£&£ 
I30J9 113404 



141411 
1 32429 Tift 
18B70 94ft 

iS! W 9 

73622 47ft 
71341 13414 
70967 52ft 
6190 16 
54 W* 33ft 
51199 37ft 
50W4 702ft 

£g? 3 “ 

41440 57ft* 


37ft 38 
34ft* 3M 

97ft 9W 

^35 


am B ft 

f as? 

ft 9to 
y/ft 98 
2T9ta 114ft 
54V* 544ft 


♦ft 

•ft 

♦2Vft 

♦ft 

+Hta 

♦ft 

♦lft 

+V» 


SOYBEAN MEAL (C80T1 
100 tans- Mon par tan 

Od97 20900 205x0 20770 +IJ0 0344 
Dec 97 20500 199 JO 202-70 .290 42246 
Jan 90 202J0 19700 20100 ♦ATO U931 
Wo/ 91 20020 19420 199X0 .420 14366 
Way 98 199 JO 1 9330 19530 +490 155S4 
-M98 20)00 19500 20050 + 550 7J40 

Ed. sates NJV. Tim Vries 1 7236 
Thw apan tat 1 15158. off 579 


Metals 

SOLD (NCAUO 

100 hoy or.- doHm par hoy az. 

Od 97 33*40 33120 33440 +340 1*3 

335X0 .350 t 
33720 332.70 33290 +3X0 94973 
338 JO 33400 33820 .3X0 71422 
34020 33200 339 JO +140 
34200 33800 341 JO +3J0 
34170 .320 
S44 4Q .320 
347.70 34500 34770 +320 
Ed. safes 32000 Tim iotas 38JS1 
HW open M 180*44 all KOI 


Mm 97 
Doc 97 
M9S 
Apr 98 
Jim 9« 
Aug 98 
Od98 
Dae 98 


ITAUAN GOVERNMENT BOND OIFFEI 
ITL200 iftWan-pb a(100 pd 
Dec 97 11100 11115 11209 +104 120333 
NkaWlLT. N.T. 11184 +107 1J36 
EsLsdot 7200. Plmdec 78279 
9rn.0pnM: 1JIXW <9 214 


industrials 

COTTON 2 (NCTN1 


5812 

9X40 

4443 


8J20 


LIBOR 1-MONTH OCMEiO 
S3mflfco-nt*oM00pd. 

Od 97 *08 9434 9438 +002 27J87 

Nov 97 9437 9433 «*34 +002 32061 

Dec 97 9423 9418 9422 +005 8J51 

Est. sates MJLTlwftsiriK 4158 
Thuft open kfl 73X99. Up 349 


•ft AMEX 


Nftk UM* last Ckc. AMEX 
71123 70*96 71001 +SOS 

Dow Jones Bond 


SOYBEAN OIL tCBOTl 
60000 lu- atari* per B> 

0d 97 23.94 23X9 2305 +030 2597 

Doc 97 2430 2302 2413 +028 55X31 

JOT 98 24X7 2400 2431 +4J2S 16,974 

Morf8 24X0 2418 2449 +023 0916 
May 98 24X7 2429 2458 +021 7.209 

JU9B 2473 2428 24X4 + 024 4348 

Est Kries NX. Tim xriesl2J69 
TTm apcit U 99XCI ofl 490 


3*08 

ser* 


20 Bands 
lOUTOfes 

10 Industrials 


Ttata* 

10434 10447 

102.18 . 1CQ33 

100X9 10571 


44121 


i: 

ii 

10605 

9171 


959ft 96ftl« +4*. 
ft, I _ 
IVta -ft 


97ft 
4ft 

89ft Mft 

9ft «ft . . 

4ft .4 414 ♦ 9ft 

Hft Bft 31ft tft, 

Vift I ft *ft -+ft 

1Y» lft 1W .ft 

9ft ft* ft -¥m 

319ft 31ft 31*6 +ft 


SOYBEANS tCBOTl 

5000 bu n ri n hft wn cants per tashal 

Nov 97 445 4271* 439ft +12 101 J99 

Jon 98 447 629ft 641ft .lift 29X42 

Mar 98 451 634 64716 +12ft 14X99 

May98 xsaft 642ft 454V* +1116 12.998 

Jul98 66 Bh 647ft MCV, ♦ljft 1VX73 

Est sates NX Tim sate* <2.701 

Tim open tat 174X00 ap 1X47 


HI ORAOE COPPER (NCMX) 

25000 fcv- cm* par lb. 

009? 9275 92J0 9270 +O.XS 

NOV97 93X0 9300 9320 +005 

Dec 97 9410 92X0 9X85 +0.10 

JOT 98 9425 9410 9*35 +020 

FA* „ . 8480 +0.45 

MOT 98 9500 9420 9500 +0X0 

Apr IB 9515 9500 9515 +0X0 

May 98 9520 9480 95.15 +055 

JOT 98 9515 +055 

Est sales 7X00 Tim arias 10456 
Tim open bri 50540 up 1237 


1252 

2240 

27X43 

1291 

1,121 

5045 

940 

yr« 

922 


EURODOLLARS (CMER) 

SI m88on-pti of loo pet 

Od 97 9429 9*25 9427 +002 24X24 

Nov 97 9426 9422 9414 +OJJ 12J30 

9424 9420 9423 +003 585131 

9425 9415 9420 +004 420252 

9423 9409 9413 +004 317.128 

9417 9401 9404 +005 244292 

9407 9X90 9195 +005 23X295 

9405 93J9 9X92 *004 152X41 

9401 9X85 9X89 +005 115960 

9198 9X81 9384 +003 99.00 

9X91 9X73 9377 +003 87,205 

9191 9173 9177 +003 71X53 

ILA. Tim arias 37514 


Dec 97 
Mar 98 
Jot 98 
Sep 98 
DacfB 
Mar 99 
Jon 99 
Sop 99 
Dae 99 
Mar 00 
Est 


Od97 

4909 

»0O 

49 J8 

+0.12 

29 

Dac 97 

7105 

71*0 

7104 

MU4 

-I9.9SZ 

MorM 

7X35 

77.95 

7117 

+ai7 

14075 

Moy 98 

7X90 

7X40 

7180 

+0.05 

7057 

Jill 96 

7*40 

7*40 

7*51 

+aio 

4071 

Eta. satea NA Thu* total illB 



Thus open M 88067. aft 283 



HEATING OIL (NMER) 




-42400 «ri. cam per gat 




No* 97 

6X60 

59*5 

6135 

+155 

04B7 

DeeW 

*305 

4060 

48181 

+«» 

31J01 

Jot 98 

4300 

61.12 

also 

+129 

2U77 

Fob ra 

4360 

61 JO 

4X30 

+104 

11422 

MorM 

6X40 

4100 

4130 

+1.94 

4489 

Apr 96 

5980 

58 JO 

5900 

+1J9 

*997 

Mayra 

S8J8 

SB0O 

S6JB 

+1.74 

1709 


■ •---«* 
• -v r-. +: 
V-.K-W 
— - 

s.- 




V-r -.';**#+■»» 


- ir^ " S-"» 


'•"jU 1 


y V \ i . K ■ 


-..'riftn S» 


l 


EsL sates NX. Tlttn sates 31X74 
Tim Open H U&624 off 9992*9 


UGHT SWEET CRUDE DIMER) 


1X00 ML- riaBois per Mri. 
ZX15 21.77 


Trading Activity 
NYSE 


ArinviKed 
DaateM 
uwvmoed 
Total antes 
ItawffeM 
New Urn 


Nasdaq 


4 “3 Ss 


1443 2723 

354 1(64 

1635 


AMEX 


Naw tows 

Market Sales 


f 9 

42 32 


WHEAT (CBOT) 

5000 ba nriafemsn- cants par bushd 

Dec 97 360 354 357ft .3 64381 

War 98 372ft 347 372 +4 2LJ80 

May 98 380 374ft 379ft +CW 5,194 

JU98 381 376ft 380ft +3ft 11244 

Est Mtas ILA. Tim sales 19,707 

Tim open M 109.940 up 1X38 


SILVER (NCMX) 

5000 hoy az.- cate per boy ae. 

0077 52620+1320 S 

Na» 97 528^0+11* 

Dec 97 531 JO 51X00 530 ..3B +1XM 7X244 

Jan 98 S32JD 53170 53177 +1130 21 

MOT 98 537 JO 52X00 53470 +1140 1X770 

M«98 541 JO 52X00 539.90+1320 3221 

Jal9B 54400 542J» 54X20 +1190 

SapW 54480 +1190 

Eat sries 19J00 ThOT sales 14071 
Tim open tat 101,284 up 1472 


2X39 

428 


Thus open lot X74621Z up U337 

BRITISH POUND (CMER) 

6X500 pcxjnds. t per pound 

Doc 97 1X130 15940 1X112+4UU04 27X34 

Mar 90 1X060 IJ8R1 1X060 +CL0016 238 

Jot 96 1X962 aactL 27 

fat salat NX. Thus gates X8C 

Tim open W 77X99. off 145 


Nov 97 ZX15 21.77 2285 +1J6 1 St 755 

Dec 97 2295 21X9 22X5 +0.94 84177 

JOT 98 2X45 71X6 7X35 +0.76 42275 

POT 98 2X30 7125 2XW +OX5 24X57 

Mar 96 22J5 21X5 7180 +4 \M 1X149 

Apr 96 71.70 2120 2180 +029 11231 

Eat. salat NA Thus sates 114037 
Thus open tat 433284 up 4724 


NATURAL 6AS (NMER) 




PtATlNUM (NMER) 


5D buy at- dorian par bay ( 

Od 97 438J0 47400 42X00 -2X0 783 

JW46 4aOJa 42400 427 JO -2J0 1X072 

Apr W 42X50 42080 4HL00 -2J0 SIM 

Jlri 98 41X00 414J0 41400 -X30 3 

ENsoteriNATtan sates U17 
Thus open MU442.ap4 


Ateand 

Drafted 

tSouSS 

bs sue 


Yvdoy 


1S9 

724 NYSE 
63 Amec 
+ Nasdaq 
InmMans. 


61082 545J4 

3X34 71 J3 

70X73 70496 


Livestock 
CATTLE (CMER) 

40000 lbs., certs parte. 

0097 6472 4420 66XQ -OJ7 14358 

Dec 97 66.90 46J2 6457 +0.10 41X85 

Feb 98 4970 49J2 69X5 +0.15 14839 

Apr 98 7X90 7X57 7X77 . 0X5 11,198 

Jot 96 49 M MM 4975 +0X5 7,139 

Auqft 6950 a9.IS 49.15 -Q.1S 2X53 
Est iotas 1X544 Tim scries 14936 
Tim opn litf 94717. OP10IU44 


CANADIAN DOLLAR (CMER) 

10X000 riodOTS. s pot Cda Wr 

Doc 77 7335 730. 7371+08014 49703 

MarW 7370 7345 7354+00015 1,943 
J** 96 7382 7382 7382+0X021 519 

fat. solas NA Thus wrias 14592 
Thus open tat 51, Ml, up X79S 


man rm btus.« 

Nov 97 1180 1020 

Dac97 1245 1110 
Jon 98 1200 10« 

Fab 96 X840 1770 

Mar 96 2X00 3X30 

Apr 98 2J70 1340 

Est sdas NA Thus sates 24X24 
Thus upon tat 231211 op 1X17 


W 

1125+0822 51245 
1230+0842 3X757 
3-150 +4U05 27.171 
1800 -0007 18X24 
1570 undL 11574 
1340 -0X15 1035 


4^ 


LONDON METALS CLME) 
Dollars per metric tan 
Atad ta wa MOT Pwte) 
Spcri 14*400 1657X0 
Fanwsri K53HD 1659X0 


Fhevbas 


BERMAN MARK (CMER) 

1 H000 nwi+v S par aairii 

Dec 97 X724 J647 5712+00046 54542 

MorM 5750 J740 5740+0004] 3X52 

Jot 98 J726 undL 2X16 

Ba.s ateHiATHwssBtol5.U9 

Thus open tat 61X11 up 614 


UNLEADED 6ASOUNE (NMER) 


148480 146780 
147480 147780 


JAPANESE YEN (CMER) 


Dividends 

Company 


2060110 204180 
206780 208880 


Per Anl Rac Pay Company 


Per Ant Rec Pay 


IRREGULAR 

Sanyo Eled ADR b .104 


10-7 


STOCK SPLIT 
Fst Aflanca Cp3(oc25pBt 


Pultun Gone Op 
Puttim Wv Income 
Putnm DtvrsMIn 
Putnm F«H Ina 
PiAatiHTYldAd 
PutiwiHilnc 


•j! Amor Water Wits 


REGULAR 


Putnm HlYld Maul M 


FstUMCpMa 

jWMCsp 


-ft 
• I* 

-VS 

•vs 


Fiaeprtl— . 

Genesta E n oi py 
Gnat Altai Pac 
Hypaton 1997 Tim 
Kaufman 4 Brood 
Morgan Stan Dean 
Noland Co 
Putnm Am Gvlnco 
Putnam CA In 


Q .19 10-24 
Q .14 10-20 
Q 725 10-15 
a jo ia-3i 
0 .10 10-16 
ME333 10-20 
O 87511-12 
O .14 10-14 
Q 88 10-14 
M 84410-10 
M 877510-20 


1T-I7 

11-1 

11-1 

ll-U 

11-3 

10- 30 

11- 24 
10-31 
10-24 
10-20 
1M 


Putnm WYW 
PutTOT HMd Tr A 
Putnm IneuFdA 
Putnrn latemCvt 
Putnm US ©vfln 
Robbins 4, Myss 
Trust Co NJ, 

rPenhiEnw 


KEK&S'S" 


.155 10-20 11-3 
854 10-20 11-3 
871 10-10 10-70 
853 10-10 10-20 
862 10-15 10-27 
871 10-2Q 11-3 
8575 10-20 11-3 

84 10-15 10-27 
.108 10-15 10-27 
817 10-15 10-27 

85 10-20 11-3 
SX0 10-10 10-70 

.05 10-17 10-31 

.11 11-7 IM 

32 10-13 11-1 
.155 108 10-24 


FBIDER CATTLE (CMER) 

9X000 to- coats per Rl 
Od 97 77.90 .7485 7782 -037 

Nov 97 78JO 7735 77X7 -0J7 

Jan 96 79 JO 7BJ0 78.90 4X37 

Mar 98 7930 7830 78.75 -0J0 

Apr 98 79X7 79.10 7930 -007 

May 98 80.10 79X0 79X5 4.15 
Est sates 4.159 Thus antes 5396 
Thus open M 17866. od 179 



IZS oriBon^s s POTlOO yan 


Dac97 KT7 4045 827448036 79.106 

Morn 8398 J345 -8394 4X0016 817 

Jot 98 £522 uneh. 143 

Ert-soleaNA Thus sates 2M0* 

Thus open lot 60088 up 2469 


Nov 97 6480 61.30 633S +1J2 42,974 

DSC 97 4335 60X5 4X85 +X07 1*6«9 

Jon 98 6330 &130 4X30 +1.92 14397 

Fib'S 4100 4X00 #100 +1.97 *282 

Mar 98 4X40 42X0 42X0 +0J2 5X?T 

r«ri 4530 65.10 4530 +1.17 XMJ 

.'98 45.10 45.10 45.10 +1.17 8785 

98 4333 wiOT. 1XO 

Eat. sates NA Thus wries 21377 
Thus apan M9*977, ofl 746 


Apr* 

TWayl 


CASOtLOPE) 


ua MriwmMc ton - tots aflOB tan 
18750 


6MS80 441000 471080 472006 
670500 671000 647080 682000 


Spot 575580 574580 579080 57*500 

Forwwri 579080 580080 563080 583580 


szTo&sssn 1 

teteaaBriyrq-qmteriwi 


HDGS-Laas (CMEH7 
40.000 bs.- cate par Bs 
Oct 97 4480 4835 48X5 ^LBI 

DOT 97 6*00 4340 43X7 Writ 

F*b 96 4X97 6X50 6X40 -0.15 

Apr 98 5985 5935 59X5 r5.« 

Jot 96 66.10 6535 4530 0.12 

EsL sates 5803 Thus sates 6862 
Thus apan bri 3434X up 1373 


2)oc SpecM Mot Omte) 

Spcri _ 133680 133780 134*00 134380 
Forward 134780 134880 135080 135180 


SWISS FRANC (CMER1 

125800 bones. S par bwc 

DiC97 .4973 X897 X960+08037 39876 

MarW .7030 X973 J030+08038 1X06 

tea 98 3059 unen. 243 

fat sates NA Thus sates 7,154 

Thus opal lot 3785X08 472 


Oct 97 1R750 IBIJ0 187 JS +8.75 14X73 

NO* 97 189.00 18335 18830 +83S *+31 
Doc 97 19030 18*30 19035 +SJ0 14^ 
JOT 98 19X00 186.00 19135 *835 14331 

Fob 98 19X00 144X0 19135 +835 7301 

MOT 96 16*25 183-75 18880 +7.2S 5-114 

Api98 1 60.75 18035 18*75 +4JS 2X21 


8312 

11172 

1570 

2877 

1X34 


High Low Qosa Qigo OpW 


TWA* 


1WA 

1B8M 

tmmm 

1HU 

ssas? 

sag-* 

Unkai 

M 

iri 


IN to 

11M m 

J94 IM 


IS 


to 

10 


J 

to 


UN 14ft 
M 


3 1ft R N 

2» 41 40 4M 


... -4 

109b -V, 

tto -¥» 

tat M 


va 

176 

29] 

jut 




Macs 

Ate 


Hi 

wwr 


mnr 

■MET 


m it* 
4ft to 
ns iv, 
3ft 2ft 
13ft 12ft 
1172 Mft MU 

in * ji) 

1827 21ft* 311* 

no new ns 

487 19b AS 

26 24ft 

» 

17 


lft 

to 


•ft 

-ft 

-lb 


Stock Tatrtes Explained 

52122 ! yea ^ *"* >*" a "«** Ptusitiecuiait 

ftgefctsrfnrftt8li^tftii(finodoy.WteBospBorstaOTiWdeflJimw w i8nato25peroarriorinore 

teten pokl B»1 wib htfvkw onge and (MM a re shown for the now sfcda only Mess 
(ritiasrisenoleiiiato of iteltenduBftOTWuolifcbmsOTnente based on the latest dedonritoiu 
a- dMdend also ertiu (s). 8 - annual rate of dMdend plus stodc UMOwid. c - RquUonra 
dMeM. ec- PE enedsWjM - coiled, d - new yanlyioif. dd • losi In Hie lost 12 impms. 
• - ttvidend dedarod or poW h {uccedfng 12 months, f • omtuaJ rats, Increased or last 
dedandton. 9 - dMOenfl hi ConodRin fundi subject 1o 15% non-residence lax. j - fividend 
dedaredaffcrspnMip or stock dMdend. j • dividend paid Ms yean omitted, detered. or no 
odton token at fotesi dhMsna meeftag. k - cflvtdaid declared or paid tMs yno an 
eaamolaflw Is«n with dMdends fn anwis. ra - snwd rat* reduced an tost dedanHan. 
n ■ new Issue in the past 53 weeta file Mgh-ftw range begins wWi the skat of trading, 
ltd -neat day deBvery. p- InRM dividetid annual rate unknown. PJE-prtGo-eainbigi nilfa. 


PORK BELLIES (CMER) 

4UM0I&- ante per ta. 

FabM 6530 63J0 <197 *OJD 
Mar 96 6*70 6330 6430 -OJ5 
May 98 63X0 6530 65X0 +0.75 
Est sides 1350 Thus sates 922 
Thus open W6ja up 75 


5.932 

622 

13* 


Rnanciai 
1ST BILLS (OCR) 

SI roaon- pts af 100 pcL 

Drew s® «0S «SJ* *<UB 4297 

M»9B 95.12 9505 9SJM +004 i*A5 

Jot 96 M.96 unch. 152 

EM. arias NA Thus sates 1A3S 

Thus apan ml 131* up «r 


MEXICAN PESO (CMER) 

500600 pm* 5 par paao 

2?S ISS -’S* -MS4S423S 24X50 
Mar 96 .12190 .12010 .12120 - 00227 &9B2 
Jot 96 .11832 .11730 .11750 -.0(084 1,908 

EA sates NA Thus sates *165 

Thtnopaolnl3A42*upTU 


fat strias: ZL730 . Prev. sates : 1U47 
Piev. apan tot- 100379 up 671 




Dot 97 lOB-^nro^alw^f^ 02 230430 


Food 

COCOA (NCSE) 

IS metac Ions- 5 per tan 
D*CW 
Ms 98 
May 98 
Jut 98 
5op9B 
OOC 98 


fat Mias N A Thus mtes 2S3S0 
thus open tat 230301 08*498 


1498 

1441 

1477 

+10 

41945 

172S 

1492 

1704 

+0 

2*430 

1740 

1714 

1725 

+4 

12041 

1755 

1738 

1741 

+1 

1580 

1743 

1752 

1754 

■3 

*526 

1785 

1772 

1773 

+2 

1146 


Est 10104,920 Thus soles 12X35 
Thus open tat 108356. up *747 


£ A 


COFFEE C (NCSE) 


10 

2354 

611 


HMasiT 
I WEB UK 
WEBBS ■ 


1H4 lift 


5 fc 


h 

■tn 
m 

^ 

4)1 Uto 15ft 

» lift lift lift 

1444 1746 17V, T7*b 

~ 7ft 76 

Bftb to 
lb I* 


349b >ft 

5ft -A 

31ft +** 

lift .ft 

n» -ft 

m +ift 

» 

i*« to 

12ft -ft 

• -ft 

9 to 

15ft -ft 


B-new yearly high. »- trading halted, d-inbaritniplcy or ra colwi sl ilpor being leatgqited 
underthe Banfaupfcy Ad. oneoBrtResosmBBd Uy sttch companies, m- when dUMMed. 
•J - when Issued/ ww - wfln warronts. x ■ ra-dhritiend orex-rtgh&. xSi - ex-dshfeutiaa 
w - urithaut wonrmls. y- ex-tfivWOTid and solas In HiO. ytd - ylold. Z ■ sale* in fed. 


37300 It s.- cents per Ot 

14130 U1.95 +0.90 


Hi 

777 

nos 


P6 


Dk97 14*50 
Mot 98 1SJX0 15035 15050 +445 
Mayra U9-00 14535 14535 *0M 
Jot 98 14130 140X0 140X0 +0X5 
Sap 96 137X0 13500 135X0 +0X5 
Est. sales *242 Thus satai 8X54 
Thus open W2S1C2, up 996 


11211 

4725 

1029 

2,163 

597 


wraTTKASURYtCBOT) 
noano prtn- pH *32Ma BiTOOpct 

]”-» UO-IO 11034 +0130949 
MarW 111-00 U0O8 11006 -04 1531 

JUn«8 110415 untfL 22 

stae* N A rr*n seta! 8S0I2 

Thue bpai w Xtsn up *354 

“Ttt«URYBONDS(CBOn 

* 3W* of «» peO 
B-1S 15-28 114-22 +02*5*753 
Mm« 11807 US-71 116-12 .02 36.775 

>15-21 unch, 1,936 
g*"" *5 Thus soles 324*29 
Thus open bri 70149* up Ml 2 

LONG GILT (UFFQ 


SJERUHS (UFFB) 
tsoaooo-pftotioopd 

2^2 9%M +003121470 

ftrS S? n* +004101022 

S-fi S 54 na +ttOS 67X18 

5E2 S 45 9477 70246 

S-ff 92.9S +009 59J91 

T’S 5-12 SS 9116 4fljDV XMr 

JOT99 9139 9123 9138 +0.10 37,133 

swr 

tray, open tat: 624*579 up 1,707 


Stock Indexes 

SF COMP INDEX (CMER) 

»ihdn „ 

Ore 97 985-50 961.73 97X00 +090 1S6» 
Mar 98 99*00 977X0 98000 +055 3077 
Ail 58 90908 unde 742 

Eat sates NA Thus sates 4189 
Thus apea ini 190420 up UI4 


i 


FTSEIMOIFFE) 

^sSS*sn*0 53950 +300 4MO 
Mar 96 • N.T N.T 5400 +200 W* 
fatsOTre- 1*671 Piav.safta 1L57J 
PiM.apaaM.: 71034 up 1X55 


WJONTHI EU ROMARK OJFFE) 

DM1 Milan -pte of 1Q0 pd 

+0.02 9.989 

N0*97 90B 96X3 96X2 +O0J 712 

Dec 97 MX7 94X4 96X7 +004 30*369 

25 2^2? «JS +004 SiS 

r£re' ,iD 

Dec 98 91*5 95X9 95X4 *004 159J87 

9118 KU +407 77,159 

Sep9» 952 95.14 9121 +007 47J85 

EAinteB: 25*29* Prtu.sates: 19*419 
Pirn, open mu 1X4*055 up 3004 


CAC 40 (MATIP) 

ScW P *31»J 306*0 31190 +44J ]*» 
MOTW N.T, N.T. 31430 +44J8 10OT 
Jim 98 NT. NT. 3114J +4*0 LOT 
EN. totes: 15886. 

Open tat: 80253 up 350 




For iiwesttheiw information 

Rcwl nS MOIffY SfiPORT nvrry Saturday in thn IHT. 


SUGARWORLDll INCSE) 

112000 tot- com* POT «x 

Mci 98 11.94 1185 1108 +001 93X2 

Mayffi 1190 11 J4 1107 +004 21672 

Jut 98 1104 11X8 11.74 +007 1*033 

0098 11X8 11X1 11X8 *008 1*748 

Esi. sates TORN Thus sates 3012 

Thus apon bit 151387, an 834 


0 re97 __ 

MarW NT. NT. 121.17 +105 " 25 

2*£ IfflSs +*5I 30*048 

MOT96 1122 102.70 un.13 +a M *899 

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PAGE 13 


EUROPE 


7. 


^4 Pragmatic French Oilman 

Total Official’s Deal With Iran Tests Reach of U.S. Law 


/ 





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By YousscfM. Ibrahim 

- tVf »' Times Scmrr 


PARIS — One of the warmest 
memories of Thierry Desmarest. 
dairmflii of the French oil company 
Tool SA. came when, fresh out of 
France s finest schools, he was on 
Jus own managing a mine in New 
Catatonia, 


*'l was 1 8,000 kilometers away 
from my immediate superior with 
no faxes and telephone connections 
— it was fantastic!” he said. 

Last Sunday he realized bow far 
he had come when he went to 
Tehran and signed a $2 billion 
agreement to develop one of Iran’s 
largest natural gas Fields. The deal 
brought a firestorm of criticism 



govern- 
ment. 

Since then the faxes, phones and 
telegrams have poured in, many of 
them, the company says, with sup- 
port from around the world, includ- 
ing some from American oil ex- 
ecutives. Few adopted the official 
U.S. view that the deal violates an 
American anti-terrorism law and 
could subject Total to economic 
sanctions. 

"To say the incremental share 
of our project in a country already 
producing 3.6 million barrels of 
oil a day will help finance ter- 
j rorism while the country already 
¥ possesses huge revenues from its 
hydrocarbon exports is absurd,*' 
Mr. Desmarest said in his offices 


SVfpST' on thc out - 

A courteous 5 1 -year-old who sel- 
a°m displays emotion, Mr. Des- 
seemed unable to suppress a 
2 ute ** said, “It was, I believe, 
Mrs. Albnght who said politics, 
alter all, is part principles and part 
pragmatism.” 

This was a sarcastic reference to 
Mi earlier statement by Secretary of 
State Madeleine AJ bright explain- 
ing why Washington does not place 
sanctions on China but hag no 
qualms advocating them for Burma, 
when both countries are accused of 
violating human rights. 

. E v ®r since the agreement was 
signed to develop the South Pare 
natural gas field with Gazprom of 
Russia and Petrosas of Malaysia, 
Mr. Desmarest has been caught in a 
fight between two traditional alliftg 

For its part, the European Union 
has threatened a trade war if the 
United States acts on what much of 
the world regards as imposing 
American law on sovereign ra- 
tions. 

“We will respect all legislation 
applied by the United Nations, 
nance or international law,” be 
said. “But we are under no ob- 
ligation to apply an American law 
produced by a domestic lobby for 
narrow interests.” 

His remarks reflect a common 
view among international oil ex- 
ecutives. Faced with a looming 
shortage of oil, major producers 


are scouring die globe for pro- 
chafe at 


duction po ssibilities and 


restrictions imposed by the 
United States. 

Executives from major 
American oil companies argue 
that sanctions rarely force gov- 
ernments to change their 
policies, and that Americans are 
shut out of projects in some of 
die most promising areas as 
rivals like Total sew up lucra- 
tive deals. 

“We cannot isolate ourselves 
from half of the world's oil and 
gas reserves and believe that it 
does not have a negative impact 
on the United States,” said 
Archie Dunham, president and 
chief executive of Conoco. 

In March, die Clinton adminis- 
tration barred Conoco Inc., a unit of 
Du Pont Co., from proceeding with 
an initial contract with Iran that had 
been signed by its Dutch subsidiary 
to exploit the Sim island fields. 

At Total, Mr. Desmarest’s shy 
manner , his gray suits and His 
aristocratic air, me hallmark of 
graduates of France's grandes 
ecoles, have earned him the nick- 
name Little Prince. Bnt Mr. Des- 
marest, a mining engineer who 
became chairman and chief ex- 
ecutive in 1995, is also known as 
the “central computer,” a man- 
ager with a finely honed min d 
who forgets nothing, analyzes 
everything and moves auda- 
ciously. 

He confesses that he was taken 
aback by the American reaction. “I 
was surprised by the magnitude of 
the coverage,” he said. 



Worms’s Rise 
In Profit Seen 
Aiding Fight 


Bloomberg News 

PARIS — Worms & Qc. said 
Friday that its first-half profit rose 55 
percent as three of its four main busi- 
nesses — sugar, paper and insurance 
— showed higher earnings and its 


Thierry Desmarest, Total chairman. 


The confrontation was long in 
coming. European Union members 
who do a lot of business with Iran 
and Libya have long opposed Amer- 
ican laws with extraterritorial di- 
mensions: written in the United 
States but meant to affect trade be- 
yond American borders. There is 
little question that France, Russia 
and die European Union knew, as 
one senior french foreign affairs 
official put it Thursday, “they were 
opening the abscess” with the Ira- 
nian move. 

Mr. Desmarest does not say quite 
that, but his feelings about the law 
are barely disguised. 

“We operate in 100 countries,” 
he said. * f In all these countries we 
male** sure our operations are clean 
We pay proper wages and treat 
people decently. But it is not our job 
to change the governments or im- 
pose policy.” 


# Mr. P 

Siemens to Build Plant After Getting Union Concessions ^ 

C? Wonns 


Bloomberg .Vrui 

MUNICH — Siemens AG said 
Friday it had won union agreement 
to more flexible working condi- 


tions, enabling it to build a factory in 
valu 


Germany valued at 200 million 
Deutsche marks (Si 1 3 million). 

Siemens's chief executive, Hein- 
rich von Pierer, said the electronics 
and engineering company would ex- 
pand its medical-technology oper- 
ations in Erlangen rather than at 
lower-cost locations that also had 
been under consideration. 

"We came to an agreement that 
allows us to make the 5,000 jobs in 


Erlangen highly competitive.” Mr. 


von Pierer said. “Without this 
agreement, a not-insignificant por- 
tion of those jobs would have been 
in great danger.'* 


German unions are starting to 
agree to flexible working conditions 
in return for job security. Continental 
AG, a tiremaker, last week, increased 
its workweek to 40 hours from 37.5 
hours without raising pay. 

Siemens's agreement with unions 
and the employees council allows 
production at least 12 hours a day, 
six days a week, and workers null 
not get bonus pay for working Sat- 
urdays. 

“If all parties agree to work to- 
ward a common goal, it is possible to 
build high-tedi products in Germany 
at competitive prices and thereby 
secure jobs.” Mr. von Pierer said. 

The new factory will develop and 
make magnetic resonance machines 
and other diagnostic and therapeutic 
took. It is expe ct ed to open m the 


second half of 1999 in Erlangen, 
which is in the southern state of 
Bavaria near Nuremberg. Part of the 
factory will be built on a former U-S. 
military base. 

“Medical technology remains a 
core business at Siemens,” Mr. von 
Pierer said. The division's sales for 
the year drat ended Tuesday are ex- 
pected to be 7 billion DM, the com- 
pany said. 

Tlie unit is still expected to post a 
loss for the year just ended but to 
have “much improved earnings” in 
fiscal 1998, Siemens said. 


I Hie Euro and Job Creation 


The European Union can create 
J 2 million jobs in five years through 
economic growth, EU commission- 
er Yves-Thibauit de Silguy said. 


linking job prospects to the intro- 
duction of the planned common cur- 
rency, the euro, Ageoce France- 
Presse reported from Paris. 

Mr. de Silguy also forecast that 
Britain would adopt the new cur- 
rency eventually. 

The EU can create 12 million jobs 
is five years through annual eco- 
nomic growth of 3 percent to 3 J 
percent, Mr. de Silguy said on 
French radio. 

“This means we could reduce the 
average rate of unemployment in 
Europe to 7 percent,” be said. 

The remarks continue a recent 
campaign by Mr. de Silguy to em- 
phasize the importance of the single 
currency. EU leaders are to decide in 
May which countries will begin us- 
ing the euro Jan. 1, 1999. 


ie profit growth comes as 
Worms strives to fight off a $5 bil- 
lion takeover attempt by the French 
financier Francois Pinault, and ana- 
lysts said the profit result could help 
fend off the hostile bid or force Mr. 
Pinault to raise his price. 

Worms's directors reaffirmed 
Friday their unanimous rejection of 
the bid, made by Artemis SA, Mr. 
Pinault’ s family holding company. 

“Most investors expect Mr. Pin- 
ault to raise his bid,” said Eric 
Cachet, a fund manager with Jean- 
Pieue Pinatton in Paris. 

Profit far the half at Worms rose 
to 1.1 8 billion french francs ($198.1 
million), or 20.99 francs a share, 
from 761 rmllion francs, or 13.58 
francs a share, a year earlier. The 
company said it expected the frill 
year’s profit to be “substantially 
above” the 1 billion francs it earned 
in 1996. 

Shares in Worms fell 3.10 francs 
to close at 438.80. The shares were 
suspended from trading for a week 
after Mr. Pinault announced his bid 
Sept. 19. When they resumed trad- 
ing Sept. 26, they jumped 32 francs, 
to 42790. 

Mr. Pinault has said, in the French 
press that Worms “focus.” 
Worms’s board said the price offered 
by Mr. Pinault was “inadequate” 
and did not reflect “die potential 
on” of the company, 
onns is 22.1 percent owned by 
die W orms family, with the Agnelli 
family of Italy controlling an ad- 
ditional 20 percent Assurances 
Generates de nance owns 7 percent, 
and all three major investors are 
represented on toe board. 

Wonns owns the insurer Athena 
SA, Generale Sucriere, Compagnie 
Nationale de Navigation and 40 per- 
cent of the British paper company 
Aijo Wiggins Appleton PLC. To- 
gether with toe Agnelli family, 
which controls toe carmaker Fiat 
SpA, Wonns also owns a minority 
stake in Danone SA, Europe's third- 
biggest food company. 

Mr. Pinault controls Pinanlt-Prin- 
temps-Redoute SA, a bolding com- 
pany that includes luxury depart- 
ment stores, an African trading 
company and an electrical-equip- 
ment distributor. 



I 


Source: Tetekurs 


InmuiDial Herald Tribute 


Very briefly! 


5.9 percent 

($92.82), after the cosmetics and fashion i 
54 percent decline in first-half earnings, to 66.3 million francs; 
its Thierry Mugler unit posted a loss of 34.6 million francs. 

• France andltaly will present a proposal to reduce the average 
working week to the European Union’s job summit in Novem- 
ber, according to officials from the two countries. They said the 
proposal would not include any details on how much tune 
should be cut from the work week, but toe French government 
has said it aims to reduce toe week gradually to 35 hours. 

• The Bank of Spain cut Its benchmark lending rate for the 
fifth time this year, by 25 basis points, to a record low of 5 
percent 

• Verity PLC, a British electronics maker, posted a net loss of 
£7.7 milli on ($12.4 million) for the year ended Aug. 31, 
reversing a net profit of £23 million for toe previous year, 
amid rising development costs for flat-panel audio technology 
and a restructuring charge of £3_5 milli on. 

• San of! SA of France said it and Bristol-Myers Squibb Co. 
won U.S. Food and Drug Administration clearance to market 
irbesaitan, a drag belonging to a new class of hypertension 
treatments that analysts said could generate more than $1 
b illio n in annual sales. 


• France's president, Jacques Chirac, and Prime Minister 
Jean Chretien of Canada wrote a letter asking President 
Ernesto Zedillo of Mexico to review a faded bid by a con- 
sortium led by GEC Alstbom and Bombardier Inc. to supply 
materials for the Mexico City subway, according to sources 
close to toe Elysde Palace. 

• Carls berg AS plans to sell noncore activities to enable it to 
concentrate on the beer market and strengthen its global 
position, toe weekly Boerscns Nyhedsmagasm reported, quot- 
ing die brewer's manag in g director, Flemming Lindeloev. 

• British Airways PLC’s managin g director, Robert Ay ling, 
said he was putting his faith in quiet diplomacy to save a planned 
allian ce with AMR Corp.’s American Airlines that is being 
examined by European Union antitrust authorities; he refused to 

elaborate. Bloomberg, AFX, Reuiers 


WORLD STOCK MARKETS 


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4*1 no *0700 
74000 74000 

497.99 50600 

41200 41200 
32000 324A9 
19800 30200 
4250 42J0 
1055 10-70 

13400 151.19 
18100 17300 
16200 14000 

370.99 36900 

4230 4230 
1130 1200 
2*81 2708 



Hlgk 

Law 

don 

Prav. 

Sydney 


Al MMai: 270.18 
tartan: 277858 

Anar 

8J< 

8X5 

8X1 

8J9 

ANZBktog 

1142 

11X2 

II XI 

11X9 

BHP 

16J8 

14.13 

16.18 

16XS 

Bond 

438 

4X3 

4X5 

440 


28X6 

27X0 

27.90 

28X4 

CBA 

17 J1 

17X2 

1/X5 

17X7 

CC Amort 

Ti10 

1459 

15.10 

IX 

Cotes Myar 

6X2 

6X5 

6X5 

6J9 


6JS 

6X1 

6X0 

685 

CSR 

540 

530 

5X1 

S3 


2X1 

2X6 

250 

257 

Goodman Rd 

232 

225 

227 

231 

tdAastmaa 

1250 

12/S 

I2M 

12M 


33X5 

33X0 

3340 

33X5 

MiMHta 

NrtAiatBmk 

1X9 

1X6 

1X9 

1X9 

Z1X3 

2L4* 

21X0 

21X5 

NdMutodHdg 

235 

2X2 

235 

233 

Nows Carp 

639 

fUft 

6X5 

7 

Padflc Dwtop 

195 

3J5 

352 

290 

Pioneer W1 

4X0 

4X9 

4X4 

4XB 


9 

US 

8.96 

9 

RtoUda 

21X2 

21 SB 

ZMS 

71X4 

St George Bank 

2X4 

8X7 

8X2 

8X3 

WMC 

6X2 

6X7 

6X5 

632 


8X0 

TZ18 

858 

12.95 

tSi 

nrt 

■JB 

1218 


436 

4XS 

4X5 

433 

Tafpef 

Stack 

Mrtadtadrt 1537.18 
Pndamr 8384X4 

OritnyUfelm 

127 

173 

124X0 

127 

angHoeBk 
Cfa toe Tung Bk 

WO 

96X0 

96X0 

OOJO 

72 

» 

71 

72 

ChtaaDevdpn* 

99 

9/ 

V8XU 

99 


26 

9t/n 

25X0 

26 


100 

96X0 

9V 

00X0 


56 

55 

56 

56 

Him Nan Bk 

107 

02-5D 

104 

08X0 

MCtanmBk 

54X0 

S3 

53X0 

54 

N®Yo Ptatta 

64 

62X0 

64 

<4 

ShtaKoogLHe 

XoimSwi 

80 

ll 

78 

W 

145X0 

139 

45X0 

47X0 

Tatum 

UtaMboBK 

33X0 

92 

33 

85.50 

33 

92 

3120 

88 

UktVtoddadD 

58 

57 

58 

57 JD 


The Trib Index 


Prices as of SM PM. Now Yak time. 


Jan. t, 1902m 100. 

Laval 

Ctangs 

%crisng* 

year to data 
%changa 
+21.60 

World Index 
nagfomf Mmh 

181.36 

+1^8 

+0.77 

Aoa/PadBc 

120.77 

+0^1 

+0.42 

-2.18 

Europe 

201-76 

+ai7 

+1.60 

+25.16 

N. America 

20951 

+0.16 

+0.08 

+29.65 

S. America 

Industrial Mutt 

177.82 

+008 

+0.05 

+85.40 

Capital goods 

227.17 

+1-52 

+0.67 

+32.91 

Consumer goods 

19931 

+1.48 

+0.75 

+23.47 

Enogy 

212-70 

+2.16 

+1.03 

+24.60 

Finance 

135.77 

+1.49 

+1.11 

+1658 

MbcgBaneous 

193-20 

+OUB 

+004 

+19.42 

Raw Materials 

189.11 

+037 

+0^0 

+7.83 

Service 

171.96 

+0.92 

+054 

+25.23 

mmes 

17556 

+1.10 

+0.83 

+22.65 


The brtamB&cnBl Herald TrixxteWorfd Stock Index C tracks the U.S. doOttrvaluasof 
200 MamabonaBy InvastaUa modes front 25 coutms. For mote rfotmation. a tree 
boona is nva&a&o by writing to The Tito Index, 181 Avanua Chafes Oa GauBe, 

92527 NetOy Cadax, Franco. Comptod by Bloombeig Nows. 


High Low Oon Pm. 


MTTDafo 
Ofl Paper 
Osaka Gas 
fSa* 

Bohn 
Satan Bk 
Sankyn 
SamBadC 
Sanyo Bee 


SdMiKwy 
mcharn 


Tokyo 


HUM 225:1744735 
PW l lBE 1748534 


SakiHfl 
Satasul Hoaa 
Seven- Beyen 
Shorp 

ShkokDBPw 
Sbimlzu 
Sto-riwCh 
Shiseldo 
ShbuohoBk 
ScflbonK 


5870b 

582 

285 

1790 

14500 

561 

AIM 

1470 

378 

8680 

4570 

912 

1110 

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1080 

1930 

523 


ABnonota 
AJ Nippon Air 


Singapore sMsTk«:iNtM 

Pnrtfawrl?27B 


Asia Poe Bnw 
C ereb os Poe 
CTyDevfc 
“ : Cartage 

r Famn' 


Montreal 


343725 
2*17 JS 



46.90 

Mk 

6&X 

47 

30JS 

3030 

3QJ5 

30% 

3SJ0 

3BX5 

3X0 

3% 

4W 

4*K 

44% 

41 

18X0 

T8X0 

lift 

tsxo 

33% 

3US 

33.1S 

33X0 

4390 

43J5 

4380 

41X0 

ASK 

43 

43 

42.10 

22% 

2U5 

22X5 

22 

19X5 

19X5 

19X5 

WJO 

42X5 

4] J0 

43% 

41% 

41% 

41X0 

41% 

41 JB 

25.90 

24X5 

7SJ0 

24X0 

938 

8 V, 

9.10 

1 

«9XS 

68X5 

69 JD 

4US 


Oslo 

AI*rA 


OUMCC 72X51 
tallon: 71X09 



SID 

5JH 

525 

5.15 

SB 

5.10 

5.10 

5.15 

9X0 

941 

9X5 

9X0 

9 

8X5 

8X5 

9 

1 

oxe 

0X9 

0X9 

ISM 

15 

1&20 

15L20 

3X6 

3X8 

1X0 

148 

8X0 

L30 

130 

&5D 

3X2 

2-80 

3J8 

140 

8X0 

BID 

■JO 

AW 

4 

198 

4 

IK 

555 

5X5 

5X0 

5X5 

US 

US 

3.11 

118 

4X4 

4J2 

442 

4J2 

3X2 

3X0 

3X8 

170 

1020 

9X5 

9X5 

WHO 

ATS 

645 

6X0 

A75 

US 

5X5 

5X5 

5X5 

4X0 

6X0 

6X5 

6X0 

12 

JtXO 

11J0 

H 

4X5 

6X0 

6X0 

6X5 

22X0 

22X9 

22X0 

2190 

2J2 

2X2 

1X9 

2X2 

248 

23 

2J8 

2X0 

250 

2X9 

2X9 

2X8 

IJ1 

1 

1 

1JI 

1040 

10X0 

1048 

10X0 

3.1* 

104 

3.10 

118 


AaK ... 
AmMOm 
ASOV 

Bk Tokyo MBso 

Bk Yokohama 

BiMjate 

Canon 

QubaEtoc 

QnigelaiBec 

Doi^Prini 

DtaAcUKaig 

DatanBatac 


MW Sec 

DD1 

Denso 

Ead Japan Ry 

Stall 

Foooc 


Photo 


Da mate 8k 
IA 


as* 

te* tamed* 

OdtotenA 


Tio ao d o n oe 


138 US 
22 * 220 
BSD 24B 
» B 30 

US 131 
4150 AS 
42* 421 

427 420 

361 260 

W2 16030 
*27 610 

Mb A77 
IS5 14935 
133 UO 
345 US 
SI 


13B 13430 
223 220 

wsn Win 
30*0 29 JO 
mn im 
A3 A3B 
42330 A20 

42* 41730 
U 366 
KtSO 14330 
61* *24 

*83 *77 

1SS 147 
19 130 

365 3*0 

5230 5230 


Stockholm s xwiB tecagzg 


KamionlBft 

HBncM ^ 

Hoata Motor 

IBJ 

IHI 

todw 

Bo-Ybtedo 

JAL 

JoponTpboea 
Jdkd 
Kiteno 
Kasai Bee 
JOB 

KovtaJaUHvy 
Kara Start 
KhMMppRy 
JOrinBrnery 
BtoW 

Kyottra 
. i Elec 
U 


Man! 


AGAB 

ABBA 


Asm A 
AflaCopaA 


Paris 


CACrteMHM 

tatao* »M7 


Madrid 


CA33AX 


V1L 


*90 MO 

MS |B 7B 

iu nuo 

4 4 AB 


BUD 27758 27770 BUB 
jrcu JM Iffi M MS 

£ S S SI 



TO* 1103 nw 1109 
22890 23X00 228*0 22540 
UZ* mo* 1017 1005 
825 801 82S 790 

AOS 4RL10 *2290 40X60 
770 7*3 766 7** 

44A90 446 4*150 450 

31730 30AW 31X10 3U 


BldHKB 

E&skbB 

HeoesB 

hoteiA 

bnatarB 

MoOoB 

W w teBtea i 

SonbB 

SCAB 

SEBontenA 


SteaosB 

5Jtf6 

S p mte tarn A 

S»HotartiA 

UcftoB 


12030 ■ IS 
111 10730 
25730 256 

137 13230 
255% 
327 319 

<36 *14 

374 3*5 

33S 326 

TOO 690 
412 40430 
B1 271 
275 36X50 
m 24*50 
270 260 

230 

W3 1H550 
HRLSD 9*50 
374 360 

rtO 323 
225 223 

199 18530 
130 IB 
275 36S 

22030 21730 


17030 11930 
10930 107 

25730 25*30 
ffl 136 
260 2S7 

325 32130 
*35 614 

371-50 370 

SMJ g{ 

693 700 

412 406 

77151 279 

271 2« 

26630 271 

26850 2*4 

22830 227 

189 19030 

Wg ^ 

375 361 

31930 227 

22AM 225 
194 18830 
129 12830 

272 273 

219 217 


MnbnCpran 
Mote Sec UK 


JIM 

Motel Else Wk 

MtenNtt 

MtaubbNCli 

MteubbtaS 

MBwbbhlEsI 

MtabtaflHvy 

MSUteUMot 

MitattHTr 

MttnJ 

MtttifMoa 
MOstaTiUd 
MwtaBJtttg 
N K 

hub See 


.. i Start 
Moan Motor 
HIM 

i Sec 


jteauwi 


1050 1000 
*20 611 
3450 3790 
745 705 

555 544 

925 895 

2330 2290 

470 -460 

2950 2890 

3620 3550 

2020 2000 
1920 1900 

2620 2560 

652 640 

1290 1270 
5*5 545 

1170 1130 

790 761 

5520D 5E0a 
2850 2790 

5690s 5600a 

2270 2230 
4630 4490 

1300 1260 
4920 ASM 
1540 1490 

1200 1180 
1120 1070 
4410 4250 
1440 1410 
290 275 

441 415 

65S0 6430 

411 400 

9850a 9730a 
2940 2910 
505 492 

2130 2080 
1600 1*41 
388 349 

225 213 

481 <73 

1030 978 

144 140 

*24 601 

460 425 

79» 7830 
1980 1950 
580 SS7 
390. 380 
2050 1980 
3910 37W 
2230 2200 
1200 1170 

1130 1110 
270 2*5 

4« 42* 

1308 1760 
675 651 

*30 *12 

1850 1820 
950 93S 

1560 1520 

60S 500 

5300 5200 

MM M70 
1920 I860 

510 SOI 
11900 11500 
700 M* 
SIS 490 
273 258 

725 *81 

■M7 4* 

1630 1580 
1110b 10808 


1830 1820 

<19 620 

3400 3370 
735 705 

541 .511 
91* 906 

-2320 2300 
468 470 

2930 2910 

3610 3590 

2000 2000 

1900 1900 

2600 2560 

650 *45 

1280 1300 
563 557 

1160 1130 

780 768 

5270B 5500a 
2820 2830 

5670n 5570a 
2250 2220 
4560 4520 
1290 1280 
49T0 *20 

1530 1490 

1190 1180 
1100 1060 
*350 mn 
1430 1450 
288 278 

460 411 

6540 *440 
409 408 

9760a 9800a 
2930 2960 
49* 491 

2100 2110 
1660 1730 
369 383 

225 220 

£80 <72 

1010 970 

MO 146 
*13 401 

4 S 4« 

7910 7930 
1970 1950 

577 563 

388 390 

2000 1970 
3910 3808 
2210 2200 
1170 1190 
1110 1100 
2*5 260 

444 421 

1770 1800 
663 680 

<29 *15 

1850 1840 

936 950 

1530 1540 

600 38 

5300 5050 
14M MM 
1920 1990 
SOI 502 
11900 11700 
<92 664 

SIS 485 
2*9 255 

724 689 

W IB 
1QB 1580 
lMOi 1090b 


StunBomoBk 
5wnBa*ra 
Sumitomo Sec 
Suarf Metal 
SunBTMt 
Tatstn Ran 
TokedBCbera 
TDK 

TofaoknQPnr 
Total Bank 
Italic Marine 
Tokyo SPwr 
Tokyo Electron 
Tokyo Gas 
Tokyo Cam 
Tonga 
Toppoa Print 
Tarortad 


Toreytao 
Tburoa 
Totem 
Toys Troil 
Toyota Motor 
Ytanonowtf 


199 
1280 
4800 
11900 
875 
1B10 
429 
1750 
263 
1190 
31 X 
36X 
11500 
1920 
1010 
1500 
2290 
8090 
283 
569 
1070 
1«M 
*79 
580 
1880 
97* 
3700 
30*0 


5760b 
540 
280 
1730 
M500 
545 
4060 
1 430 
351 
8450 
4510 
8M 
1090 
8760 
1040 
1880 
510 
3410 
1920 
1260 
4700 
11500 
865 
1780 
422 
1730 
255 
1150 
3060 
3570 
11000 
1900 
966 
USD 
2270 
7740 
274 


1020 

1660 

*64 

561 

1830 

Ml 

3640 

3000 


2fl0 280 
1790 17X 

14500 14400 
555 560 

4110 4110 
1440 1430 

378 3*1 

%% 5$ 

890 907 

noo mo 
8960 8860 
1090 1050 

1910 1910 

510 536 

3460 34X 

1930 1950 
1280 1270 

4710 4800 
11800 11500 
870 870 

1800 1760 

*29 422 

1740 1750 

258 258 

1190 1140 

3120 71 SO 

3610 3590 

11400 11200 
1910 1910 

9B9 970 

1480 1460 

2270 2270 
8070 7800 
277 273 

555 559 

1078 1D2D 
.1670 MAD 

*75 * m 

574 50 

1880 1810 
974 ■ 954 
3700 3650 
30SD 3000 



Low 

am 

Pm. 

24X5 

24% 

24X5 

25% 

25X0 

2530 

25X0 

26 

2SJS 

1120 

13X5 

1115 

110% 

111% 

11480 

3435 

34.B0 

34X0 

_ X 

30 

3014 

24X5 

24X5 

25 

.47% 

48 

47X0 

2480 

25 

25 

50% 

5D% 

50% 

50* 

SI* 

50X0 

2490 

27 

2730 

50 

50 

49.90 

2&X0 

2SJB 

28X5 

33^0 

33X0 

33% 

47J5 

48X0 

4730 

18X0 

IB JO 

18% 

2A95 

2495 

26J90 

78 

78X5 

77.70 

3m 

36X0 

3A10 

(-35 

8X5 

835 

29.15 

29% 

29 

109 

109 

109X0 


Vienna 


ATXtatae14MJ4 
Prortous; 1458J0 


BoeWer-Utfdefa 
CnsBnutPfd 
EA-GeneraO 
EVN 


Huahataa Wtan 

OMV 


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1095 1072 1 0951071 J5 
6S6 451.05 655J0 656.15 
3385 3350 3365 3360 

1*I01582JQ 1603 1598 
525 51 9 JO 522.15 523 

1949 J9T6 1948 1925 

89X50 88540 89X50 091 

614 604 *13 £1640 

2680 2629 36» 2675 
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KxltobzxUKD 


Wellington NzsE4ta*iKt259Ui 

PtlftoUB 237X2* 


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Abate Cem. 
Alberto Energy 
Alcan Alum 
AiidnonExpi 

Bk Montreal 

Bk Nam Sadia 
Ban* Gobi 
BCE 

wfluwn i mm 
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CdnOcddPM 

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68.10 66V, 

3195 331* 

421* 41.15 
3X10 3X30 
431* dt 
28 27 JS 
54to 5105 
AIM 39% 

7140 78% 

41% 404S 
37 JO 36J5 
4050 4DJ0 
3485 34.15 
26» 26J0 
1X20 1MD 
31% 31 

3450 3450 
2XB5 2X60 
2470 2414 
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2U5 2X20 
2X35 2X10 
32% 3UD 
1245 12% 

V 81 
£40 33.95 
5450 54 

21B 2BJ3 
39 38% 

I£* Wja 

99% 98 

12.10 1L« 

2*20 2X70 

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2B* 33% 

149% 1*6» 

"JS 11% 

35% 3*4* 


Air N Zed* B 4 198 4 4 

Briefly tmrt 1J9 ljg 139 1* 

Carter Ho# Crt 155 145 S IM 

RaKh Cb BUg ilS X0B X12 5JJ8 

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8-1* iBI 8-10 7.99 
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S PI Wee 3770.1* 

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2144 2221 2144 
575 584 $04 

IS* 1434 1435 
2810 2900 2800 
870 JJD 870 
ZBO 2345 220 
2390 2430 2390 
1260 1294 1260 
M2JD 143J0 143 

1198 1216 1200 
21X50 21850 2117S 

ra 534 535 

#970 7020 7015 
3970 3970 4000 
IW 1399 1381 
570 570 $73 

2072 2097 2080 
2280 2330 2270 
1R2S 189 108X5 
1910 1930 1930 
«8 915 911 

1881 1881 1880 
,332 339 329 

U265 13590 13435 

39X50 403 393 
1755 1740 1763 
2600 .2630 2600 
912 912 920 

1140 1181 11S3 
2205 2258 2219 
1954 1990 1965 
1732 1715 
1584 1531 
*3 640 


1711 


635 


- V? 









PAGE 14 


PAGE 14 


Friday’s 4 PJH. dose 

NriJoow^p^notreflECfinglofefiwtesEbewftfire. 
Associated Press. 


INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY. OCTOBER 4-5, 199 


NYSE 


■ nwo 
UM Ofi Mfk U. 


n> w k w> 


let 

*lli* 

ill 1 


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INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, OCTOBER 4-5, 1997 


PAGE 15 


ASIA/PACIFIC 


\ Has Acer’s Chief 
Lost His Touch? 

Pessimistic Investors Pummel Stock 


c 


■ ilJl 'itv. * 


Collapsing Shares 




Bloomberg News 

frt T/ ^ IPEI .— Is Stan Shih, tbe 
founder of Acer Inc. and a self- 
proclaimed “gardener of micro- 

8ST fc " loA * ■* «»“ 

In less than three months, the 
l aiwan-based computer mair^ has 
lost more than half of its market 
v ““- shares hit a record high 
of J 1 , 1 -50 Taiwan dollars ($3.90) 

1 lcP a cIosed 

at 53 j 0, down 1 .50, amid growing 

company will cut 
ns 1997 profit forecast 

In Mach, Acer said it expected 
net profit to rise 31 percent this 
y car, to 4 billion dollars, and pre- 
dicted sal^ would rise 35 percent 
to 77.7 billion dollars. 

Acer shares are collapsing,” 
sud Vincent Ho, manager of the 
$279 million FormosaFund, who 
said he recently sold his Acer 
stock, which he said had consti- 
tuted 2 perc ent of his portfolio. 

The trouble, fund managers say, 
is dial Mr. S hih is not living up to 
investors’ high expectations. 
Slowing sales and losses at its U.S. 
subsidiaries have not helped. 

Acer’s September sales fell 10 


percent short of analysts’ predic- 
tions, and the company’s profit fell 
by one-third in the year that ended 
in June. Acer, die world’s eighth- 
largest personal-computer maker, 
said unaudited sales last month rose 
to 5.5 billion dollars, compared 
with die company’s forecast of 6.0 
billion dollars. 

Mr. Shih “is a well-respected 
entrepreneur, but as its investors, 
we’ve got to be practical,' ’ Mr. Ho 
said. 

Tbe company is facing growing 
problems wife its U.S. operations. 
Acer America Corp. had a loss of 
$45 million in the fust half of this 
year. Texas Instruments- Acer Inc., 
meanwhile, recently slashed its 
forecast for 1997 net profit by 82 
percent because of failing prices 
for memory chips. The joint ven- 
ture with Texas Instruments Inc. 

sted a first-half loss of 667 mil- 
ion Taiwan dollars. 

“I don’t expect to see any quick 
fix in profits,” Mr. Shih said in a 
recent interview. 4 ‘The best feat can 
happen is the unit breaks even in the 
fourth quarter. Investors should 
lode at our long-term prospects/’ 

In June, Texas Instruments-Acer 



_ 

P^itnr Hf iiliAln Unit TTtfft" 


E 


said it would indefinitely delay 
completion of a $1.35 billion plant 
in Hsinchu, south of Taipei. Con- 
struction of fee plant began in Oc- 
tober 1996. 

Few doubt Mr. Shih, 53, is in fee 
U.S. market for fee long haul. 

“It's a road feat has no return,” 
Mr. Ho said. “ Acer will continue 
the operations, as it's determined to 
be one of fee tiny island’s few 
companies that impresses fee 
world." 

Many also say feat if anyone can 
do it, Mr. Shih can. 

In the early 1970s, he brought 
Taiwan fee desktop calculator, in 


Lnlentttiooal Hmld Tribune 

fee 1980s he transformed the boxy 
PC into a sexy, must-have house- 
hold appliance, and by the early 
1990s, he had built Acer into an 
$8.7 billion empire. 

Acer's 1996 financial year was 
marred by a sharp decline in prices 
for memory chips, one of its main 
products. In March, fee company 
said profit for 1996 fell 44 percent, 
to 3.06 billion dollars, as sales 
dropped 8 percent, to 57.5 billion 
dollars. 

The company said prices for dy- 
namic random-access memory 
chips had fallen by as much as SO 
percent that year. 


Unemployment 
In Japan, at 3.4%, 
Remains * Severe ’ 


Cumflprf by Our SxffFmm Dbpa h l n 

TOKYO — An unemployment 
rate feat Japan regards as hig h re- 
mained at 3.4 percent in August, 
the government said Friday. 

The joblessness rate is still 
“high and severe.” said an official 
wife fee Management and Co- 
ordination Agency, which com- 
piled the data. 

The rate was at a record 3.5 
percent in May and June. It also 
reached that level during those 
months a year earlier. 

Separately, more Japanese 
companies cut their earnings esti- 
mates for the half-year That ended 
Tuesday, as heavyweights ran g ing 
from Hitachi Ltd. to Mitsubishi Ltd. 
lo Mitsui Engineering & Shipbuild- 
ing Lid. either cut profit forecasts or 
projected losses. (AP, Bloomberg ) 


Internet, Phones, Ships and Croissants 

Bakery Purchase Raises Questions About Sembaicangs Diversification 


Bloomberg News 

SINGAPORE — Buy a condo, make a phone call, 
surf the Internet or pick up a croissant here, and you 
could be adding to Sembawang Corp.’s coffers. 

Fleeing shrinking margins in its main business of 
repairing ships, Sembawang, which was the first 
shipyard company to be listed on fee Singapore stock 
exchange when it joined in 1973, has sought new 
businesses to enter. 

The company said Thursday that it would pay 1.80 
Singapore dollars ($1.18) a share, or 165.8 million 
dollars, to buy 51 percent of Delifrance Asia Ltd., 
whose 154 French-style caffi outlets and bakeries dot 
the island state and other countries in the region. 

With this purchase, though, Sembawang may have 
become overextended, analysts said. 

“It’s not surprising they’re buying a food company, 
but Delifrance?” said Linda Kwok, head of research at 
BZW-Pacific Union Pte., a Singapore stockbrokerage. 
What can they add? What will they think of next?” 

This wariness drove investors to pull Sem- 
bawang’s shares down 25 cents, or 3.7 percent, to 
close at 6.45 dollars Friday. 

It does not help feat Sembawang may be paying 
too much for the diversification, piling on more debt, 
analysts said. 


In addition, on Wednesday, Sembawang joined 
with WorldCom Inc. and Singapore MRT, tbe Singa- 
pore subway system's operator, to bid for a license to 
offer fixed-line phene services in Singapore. 

“Everybody was expecting some involvement in 
the telecom and food sectors, but I didn't expect it in 
one day,” said Rainer Gum pert, analyst at HSBC 
James Capel. 

Several years ago. Sembawang attempted to get 
into fee food industry through a failed takeover bid 
for Yeo Hiap Seng Ltd., a Singapore-based maker of 
soft drinks and traditional Asian canned foods. Now, 
it has a beachhead in fee Asian food business, but it is 
not what investors had expected. 

Sembawang' s drive has been spearheaded by 
Philip Yeo. its chairman, who joined the company in 
1994 and is also the head of Singapore's Economic 
Developroenr Board. 

Prompted by declining ship-repair ma rgins and in- 
tense competition from shipyards elsewhere, including 
fee Middle East, Sembawang has been on a drive to 
diversify its earnings. Its rival, Keppel Corp„ has 
expanded from ship repair to property and banking. 

Setnba wang’s businesses have gone from ship 
repair and engineering to oil and gas, to property and 
resort development, to Internet services. 


8 Leave Top Nikko Securities Posts Over Payoff Scandal 


Bloomberg News 

TOKYO — Nikko Securities Co.’s president, 
chairman and six other executives resigned Fri- 
day to apologize for allegedly paying off a gang- 
ster in a scandal feat has already claimed the jobs 
of top executives at the rest of Japan’s four largest 
brokerages. 

“I am very sorry to have shocked the public 
and to have caused the company to lose fee trust 
of its customers,” Kichiro Takao, 62, Nikko ’s 
president, said at a news briefing at the Tokyo 
Stock Exchange to announce the resignations. 


Authorities have raided offices of Nomura Se- 
curities Co., Daiwa Securities Co., Yamaidri Se- 
curities Co. and, most recently, Nikko for evidence 
feat the companies paid millions of dollars in hush 
money to an admitted racketeer, Ryuichi Koike. 

Japanese executives often step down in the 
midst of a scandal, even when not directly im- 
plicated, but are commonly kept on in important 
but low-profile advisory roles. This is the second 
time that Takuya Iwasalri, Nikko’ s chairman, has 
resigned from the company, having quit as pres- 
ident in 1992 in another scandal linked to gang- 


State Firm 
In China 
To Cut Jobs 
Of 150,000 


Agence Frwue-Pnsse 

BEIJING — China moved Friday 
to him its huge state-nm enterprises, 
announcing that Aviation Industries 
of China would lay off 150.000 em- 
ployees — almost one-fourth of its 
work force — over the next two 
years. 

The cutbacks, aimed at improv- 
ing efficiency, will reduce fee com- 
pany’s payroll to around 500,000, 
the English-language China, Daily 
newspaper report ed. 

Aviation Industries is the first 
major Chinese company to an- 
nounce mass layoffs since the Com- 
munist Party's 15th Congress last 
month ordered fee partial privat- 
ization of state corporations. 

Around one-third of China’s state 
enterprises are said to have debts 
that outweigh their fixed capital. 

- President JiangZemin warned fee 
congress that economic reforms 
would mean painful job losses. Em- 
ployment cuts already have led to 
outbreaks of unrest in some Chinese 
cities. 

Tbe news report said the aviation 
company expected to implement the 
job cats by 2000, when it hopes to 
need only 200,000 employees. 

“The aviation industry is deter- 
mined to cut surplus workers from 
unnecessary positions wife the aim 
of boosting efficiency and profit- 
ability,” fee China Daily reported. 

Ren Wei, an Aviation Industries 
executive, told fee newspaper that 
fee people robe laid off would “not 
be left to feeir own devices.” 

He said fee company would 
‘'channel some investment to de- 
velop tertiary industries and other 
civil production, which is expected 
to create sufficient jobs to absorb 
those laid off.” 

Aviation Industries, formerly die 
ministry in charge of military avi- 
ation, includes a large number of 
companies in a variety of sectors. 
Some of its units axe partly foreign- 
owned. 

Social unrest from the economic 
revolution under way is one of the 
main worries of fee Chinese lead- 
ership, even though Mr. Jiang said 
fee 1 13 million state workers must 
“change feeir mentality” and not 
rely on government support 



K 17000 
! 16000 
[ 15000 
i 14000 
1 13000 

Xs'oi 

1937 * 1997 S 1997 



Source: Tetekurs 


lawnatwnal Herald Tribune 


Very briefly: 


• The European Automobile Manufacturers Association 
said it would ask fee European Commission to take measures 
to ensure market access for its models in South Korea; new 
European passenger-car registrations in South Korea fell 33 
percent in fee first six months of this year, to 2,284, fee 
association said, yet South Korea’s vehicle exports to fee 
European Union last year rose 38 percent, to 253,000. 

• Samsung Gronp of South Korea said it would set up an 
automotive division in Sydney, creating 200 jobs. 

• India’s National Stock Exchange in New Delhi suspended 
trading after a power failure aboard die satellite that beams its 
transactions around fee nation. 

• Lockheed Martin Corp. and NEC Corp. agreed to work 
together to develop a market for electronic personal-iden- 
tification systems. 

• Daewoo Motor Co. plans to invest $55 million before fee 
end of nod week in a venture with the Ukrainian automaker 
AvtoZaz. 

• Burns, Philp & Co. of Sydney agreed to sell its herb-and- 
spice business in fee United States and Europe to a group of 
managers at its plant in Ankeny, Iowa, for a lower-man- 
expected $171 million. 

• The United States signed a grant agreement valued at 
$358,000 to help Bajan Telecommunications Holdings of 
the Philippines develop an expansion plan. 

• Indonesia said it planned to unveil tough new rules by fee 
end of the year aimed at bolstering die financial security of fee 
domestic insurance industry. 

• Bank Indonesia, the central bank, said it would provide 
swap facilities to selected exporters to lift the. country’s 
exports and cut its trade gap. 

• Vietnam’s prime minister, Phan Van Kfaai. appointed Do 

Que Luong as acting governor of fee State Bank of Vi- 
etnam. . Bloomberg. Reuters. AP. AFP, AFX 


store. Succeeding Mr. Takao as Nikko’s pres- 
ident will be Masashi Kaneko, 58, a vice 
president. The senior managing director, Hajime 
Imada, 57, will become chairman, Nikko said. 

Mr. Kaneko said he had no part in die payoff 
scandal. “I only joined the company’s board last 
year, and I’ve had nothing to do wife any of this,' ' 
he said. 

Mr. Kaneko pledged to '‘pursue 100 percent 


icy in fee company’s operations 
said he would hire European, U.S. and J; 
experts to. bring Nikko “up to global stan 


. • . mj 

Pepsi Links With Japan’s Suntory 


CompOrt by Oar Stag From Dispatches 

TOKYO — Suntory Ud. said Friday that it 
would form an alliance wife PepsiCo Inc. to 
challenge the dominance of Coca-Cola Co. in 
Japanese soft drink market. 

PepsiCo sold the marketing rights in Japan 
for four of its main soft dnnks to Suntory, 
Japan’s second-biggest soft drink maker, for an 
undisclosed amount. Suntory will start selling 
Pepsi, Diet Pepsi, 7-Up and Mountain Dew in 
January. 

The alliance would allow PepsiCo to use 
Suntory’s national retail network to improve its 
dwindling soft drink sales in Japan ana would 
give Suntory access to Pepsi’s popular brands. 


“Pepsi has been struggling to increase sales 
in Japan because of tbe ofeercola company that 
came to Japan earlier.” said Suntory 's pres- 
ident. Shinichiro Torii, referring to Coca-Cola. 

About one-third of Japan's 3.15 trillion yen 
($25.9 billion) soft drink market is controlled 
by companies affiliated wife Coca-Cola, ac- 
cording to Beverage and Food Statistics 
Monthly, an industry publication. Suntory con- 
trols 9.5 percent, it said. 

The move will double PepsiCo’s share in 
Japan's cola market “soon,” said Craig 
Weatherup, PepsiCo’s chief executive. Pep- 
siCo’s cunent snare is 12 percent to IS percent, 
he said. (AP, Bloomberg ) 


BASEBALL BY THE NUMBERS By Derrick Niederman 


HOTELS: Europeans Go Global to Keep Up With the Americans 


ACROSS 

1 Freight 

8 4 Player wiih 
this retired 
number 

12 Overtv smooth 

15 ’...this sceptred 
"Richard 

ir 

19 Siteof Joan of 
Arc’s demise 

20 Dutch royal 
house 

21 Goof 

22 Switchblade 

23 Words before 
dear or way 

24 ■•Playcrwith 
this retired 
number, 
informally 

25 Famed 
railspliner 

28 TV 

27 MkleasuspitaJ 

29 Center of 
Anytown. U.S A 

31 Golfer Juli 

33 Tennis’s 
Nastase . 

35 Film director 
Lee 

36 Exceed 

38 Hearty cheer 

39 Without a date 

42 at ’em!* 

44 Johnson of 
“laugh-ln” 

45 Throat 
preyed ion 

47 Where the 
Paran&Mveris: 
Abbr. 

48 First name in 
horror 

49 Prank 

50 Honored 

51 Shadow 
companion 

53 Pumps 

56 -East of Eden' 
co-aar 

57 Garlic segment 

58 Stale traeof 
Missouri 

59 Transcript 

60 < Season record 

number 

62 Caviar 

63 Gypsy. 
Traditionally 

65 European 

69 Upper, in 
Saxony 

70 Open tract 

72 Champ of 
l0.*30/74 


73 New Mexico 
resort 

74 Colleague of 
Farrar and 
Maleska 

75 Travel aid 
78 Hex. of a sort 
80 Convention 

activity 
82 Pathetic 
84 Waxy bloomer 

87 Cousin ofakjon 

88 Clippers 

91 Roosevelt 
quartet 

92 Parrot’s word 

93 It's missing in 
manana 

94 Duck 

95 Meat sump 

97 Romanian coin 

98 Copier burton 

99 Slow-moving 

100 Race official 

102 Boxer Willard 

103 Urishero 

104 Brand name at 
picnics 

106 Know-how 

107 London gallery 
109 *< Team that 

won this 
games in I 
HI -4 Memberof the 

only team to win 
this many games 
in a season 

114 Classic action 
figures 

118 Boast 

119 Free (of) 

121 Wield 

123 Supercharger 

124 Height: Prefix 

125 Debenture, 
basically 

126 More cunning 

127 Open 

128 Bygone enj 

129 Chariorte-JO- 
Raleighdir. 

ISO w Season record 
for which Rickey 
Henderson had 
this number 
131 Actress Young 
and others 

down 

1 !.ii (college 

course) 

2 Top-flight 

3 -4 Player with 

this retired 

number 

4 W Player with 
this retired 
number 


5 "Peyton Place" 
actor 

6 Decimate, with 
"down" 

7 and 

Thummhn 
(Judaic objects) 

8 Obeisance 

9 Kind of skate 

10 Curing, in a wpy 

11 Noted Virginia 
family 

12 Shade of green 

13 Umpire 

14 Movement 

15 Practitioners' 
suffix 

16 + Season record 
for which 
Grover 
Cleveland 
Alexander had 

this number 

17 One smeared in 
England 

18 Bignamein 
batteries 

28 Blue 

30 Sink 

32 m Player with 
this retired 
number 

34 Sought 
lampreys 

37 Western 
Athletic 

. Conference 
team 

39 Skatingjump 

40 Object wilh 
three round 
projections 

41 Nickname 

43 Like certain 

elections 

44 -4 Player with 
this retired 
number 

46 Clothing 

48 Rabbit or Fox 
preceder 

49 Murmur 

52 Swampy tract 

54 Hubris source 

55 Nor. neighbor 

56 First TV series io 
shows baby 
being bom. 1955 

59 60’s chess champ 

61 impugns 

64 Harshest 
sentence 

66 Enclosed part of 

a blimp 



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@New York TimesJEdhed by WiU Shorts. 


67 < Season record 
for which Earl 
Webb had this 
number 

68 Bony 

71 Print emps 
follower 

76 Region of 
101 -Down 

77 Rundown 

78 Vegetable 

container 

79 Plastic— 
Band 

81 Turkish tiite 

83 ‘ Good 

Times Really 
Over" (1982 
country hit! 

85 Golly 

86 Good will. e^. 

88 Meower 

89 V.I.P. 


90 "Hamid" locate 

91 Custard 
94 What an 

apostrophe may 

-signal 
96 Bummer 
1QQ Supertaxes 
drink 

|DI Where Firenze is 
102 Insipid 

105 Spooky 

106 Let in 

108 Emperor after 

Vespasian 
J 10 Tie do 

112 The latest 

113 Carol 

115 Killer whale 

116 "Mv People" 
author 

117 Absorbs, with 
-up' 

120 Scheduled 
122 Many mos. 


Solution to Puzzle of Sept 27-28 


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nnnnarannnnrmoon nnaan 
nnn nnn nnnnnn nanna 
aaa nnn nnnn naa nma 
nnaanacinnonno nmn 
aacinn nnn nnnnnnn 
□ana nnnn nnnn nnsn 
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nan naoanfinnnnnnn nnn 
□□□nraon nnnn nnn nnnn 
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nnnnnno nnn nnnnn 
nnna nnnnnnnnnnn/ia 
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Continued from Page II 

The upheaval, he added, 
though wrenching, also 
provides European chains 
such as Accor SA in France 
and Forte PLC in Britain, a 
unit of Granada Group PLC, 
an opportunity to become 
world players. 

They are seizing fee op- 
portunity, largely by copying 
fee American model. The 
Europeans are increasingly 
separating real estate hold- 
ings from hotel management 
operations, a bookkeeping 
practice designed to raise tbe 
return on investment for hotel 
companies. They are also lur- 
ing business travelers with 
such amenities as voice mail 
and - computerized business 
centers. 

Taking another page from 
the textbook, fee Europeans 
are increasing their clout by 
merging forces, taking over 
weaker properties and push- 
ing aggressively into fee 
budget-hotel business. 

Accor announced in 
March, for example, that it 
was teaming up wife NH 
Hoteles SA, a unit of Corp. 
Financiers Reunida SA, a 
beverage and hotel group in 
Spain, to open 60 budget ho- 
tels under Accor’s Ibis brand 
around Madrid and other 
Spanish cities. 

Earlier, Hilton Internation- 
al, a unit of Britain’s Lad- 
broke Group that acquired fee 
Hi! too name outside North 
America in 1988, announced 
an equity swap and marketing 
alliance wife Hilton Hotels 
Cop. of New York. 

To finance their growth. 
European chains have dis- 
covered the stock market In 
Britain, six medium-range 
hotel companies went public 
in 1996, and two more have 
followed so for this year. 


Mach of fee action is in 
response to an American in- 
vasion of fee European hotel 
trade. Marriott began diming 
its toes in Europe’s hotel wa- 
ters two decades ago, but only 
two years ago plunged in wife 
a construction and acquisition 
binge feat has so far doubled 
the number of its rooms, to 
more than 6,000. 

Other American compa- 
nies flrespr eariing -f rnnrhiging 

practices to Europe. In 1993, 
for instance. Choice Hotels 
International Inc., the Mary- 
land-based franchising com- 
pany that is a unit of Manor 
Care, entered Europe with 
brands like Quality, Clarion 
and Sleep, and now boasts 
360 hotels. By tbe end of fee 
century. Choice executives 
expect the number \o exceed 
500. 

In the same period, HFS 
expects to increase fee num- 
ber of its hotels outside fee 
United States to 1/000, from 
300 now. Most of fee addi- 


tions will be in Europe. 

Eric Pfeffer, the president 
and managing director of 
HFS Global Services, is lead- 
ing his company’s invasion of 
Europe, negotiating agree- 
ments wife European drams. . 

The Americans are not just 
aiming far fee mass madeet, 
ei ther. 

iTT’s Sheraton unit, long a 
presence in Europe, controls 
the gilded Compagnia Itati- 
ana Generate AJberghi feat 
owns such jewels as the Ritz 
in Madrid and Des Bains on 
the Venice Lido. In June, the 
American investor Asher 
Edehnan surprised the hotel 
industry by offering $630 
million for the French Societe 
du Louvre Group, which 
owns the fabled Le Crillon on 
the Place de la Concorde in 
Paris. 

The European hotel busi- 
ness has become “very at- 
tractive” to American in- 
vestors. Mr. Edelman said by 
phone from New York. 


“Luxury is being substan- 
tially reborn; tourism and 
business, travel have picked 
up substantially. And it’s 
helped by the weakness of 
European currencies.’ ' 

For all fee influence of fee 
American chains, fee Euro- 
peans insist they are not about 
to become Yankee climes. 
For one thing, they say, re- 
gional differences on the 
Continent are too great to al- 
low the uniformity of style 
and service that is possible in 
the United States. _ 

That is why Mr. Escarrer 
split Sol Mena, which oper- 
ates 215 hotels in 25 coun- 
tries, into five geographical, 
divisions. 

1 ‘At many levels, I am very 
Americanized, like fee Amer- 
icanization of our manage- 
ment style, wife bottom-up 
communications,” he said. 
“Having said feat, our style 
remains for sure not Amer- 
ican, though not Spanish, 
either.” 


ITC 


INTERNATIONAL TELEPHONE COMPANY 

WORLDWIDE CALL BACK SYSTEM 

SAVE UP TO 80% 


Distributors Needed Worldwide 

Fo r Call Bac k I n to r nat i < > nal . 1 ) omest i c & Cellular 


International Telephone Company 
290 Pratt Street, Meriden, CT 06450-2118 
1800-638-5558 ext. 91 / 203-238-9794 Fax: 203-929-4906 









PAGE 16 


UNTERiNATIONAL HERALD TRIBUNE, SATURDAY-Sl*NDA3f', OCTOBER 4-5, 1997 


PAGE 14 



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SATURD.4I’-SUNDAY, 
OCTOBER 4-5, 1997 
PAGE 18 



Wallflowers No More: Index Funds as Global Investment Darlings 


By Iain Jenkins 


W rra A POWERFUL ran 
for most of this year, index 
funds seem to have woo a 
victory in their battle with 
owuuonai, active managers. Unlike 
managers who seek to provide high re- 
turns by picking the best stocks or other 
investments for their mutual funds, in- 
dex funds seek to do nothing more am- 
bitious than track the performance of a 
major market gauge, such as the Stan- 

itf? 500 stock index in the 

United States. 

Because these funds do not require 
much research or star salaries for their 
managers, they can put more assets to 
work than traditional competitors. Of 
course, a properly constructed index 
fund will fell in a bear market and 
plunge in a panic, but the United States 
is enjoying the third straight year of 
rising stock prices and many active 
managers have not kept up. 

From the start of the year until mid- 
September, Vanguard’s 500 Index fund 
has thrashed 80 percent of U.S. fund 
managers. In doing so, it has enabled 
index funds to shake off their dull image 
to become , the hottest investment 
product around. 

But is the argument for index funds 
really so clear-cut? 

Skeptics say the performance of Van- 
guard and other S&P 500 index funds is 
a freak due to the extraordinary out- 
performance of large-capitalization 
stocks in the United States and Europe. 
They warn investors dial the S&P can 
perform badly, as it did in the 1970s, and 
that in Japan and emerging markets, in- 
dex funds have dramatically underper- 
formed active managers in recent years. 

These arguments are falling on deaf 
ears.. Around the world, investors are 
pouring money into index funds at record 
rates. Vanguard’s 500 Index has led the 
charge, attracting S10 billion worth of 
new money in the firs! nine months of the 
year. The fund is now the second largest 
in the United Stales, with $49 billion of 
assets, and is catching Fidelity’s giant 
$60 billion Magellan fund, which closed 
to new investors last week. 

A similar story is reported in Britain, 
where index funds are now winning 12 
percent of the money that is being in- 
vested in Personal Equity Products, far 
above their normal market share of 4 to 
5 percent, according to Barclays Global 


ll Beating the Index? Enhanced-index mutual funds vs. the S&P 500 index 





Fund 


S&P 500 Index 

Fund 

American Century 
Equity Growth 

Time period 

Compound 
annual 
return, % 

17.70 

Annualized 
standard 
deviation, % 

Annualized Sharpe ^ 
alpha, %, ratio 

wttti t-Btat 

0.86(0.61) Illafi; 

Compound 
annual 
return, % 

17.48 

Annualized 
standard 
deviation, % 

■$£ 29." 

■>. , J 

Sharpe E 
ratio 

1.10 

American Century 
Income and Growth 

**4\ a ■ '■ 

KBm'Vt*. 

20.30 


1.41 (1.44) 

19.55 

v .. . „ 

■ 

1.24 

Dean Witter Value- 
Added Market Equity 

T iifem 

; ".‘j; 

14.74 


V. { 

-3.01 (-2.05) 

18.53 

« s.r.vnv 

ri 

' '*'«'■ ■ ; 

. 

0.98 

Fidelity Disciplined 
Equity 

• V . # ; ; ■ 

■Mm- 

18.51 


0.90(0.55) 4£Si: 

«f 

17.94 

v<f. - 

zifm:- 

■ : x. Pvcx * f . 

0.94 

PlMCo Enhanced 
Equity Institutional 

’JtiiiW- 

15.63 . 

h v\ ■ 

■f'frs'. *4 . v* 
■'*. ft . 

mmz 



-1.92 (-2.35) iiiasi&l';: 

tHSS\Sx 

18.00 

-im#- 

’1.15 

PlMCo StocksPlus 
institutional 

. A • 

22.22 

>»t* 

0.91(1.42) 

y- V*; v # 

20.94 

ypiag 
• *\.\£ 

1.39 . 

HWB/WPG U.S. 
Large Stock 

2t ; - 

18.38 

v r 

** • :.f vv% 

:xx:.x 

-1.05 (-0.64) 

21.32 


1.41 

SSgA Matrix 

Equity 


18.54 

j <a 


19.04 

w 

■ fc y* ■■ 

1.34 

Smith Breeden 

Equity Pius 

: I;’;:. 

21.26 

•. v v w J; 

1.45(2.13) 

19.73 

'v. /», ... 

;] : ;r 

1.40 







1 \ ■ ■ ■ ■ * 1 •>, 


Vanguard Growth & 
Income 


16.37 


-0.24 (-0 49):;J|&Jt- 

16.56 

■Milfoil 

0.72 


The worst fund was Steadman American 
Industry, which lost 30 percent 
“Some active managers do beat the 
index and they are worth looking at," 
said John Kelly, investment director of 
Barclays Funds, the retail associate of 
Barclays Global in London. “However. 


the majority don’t So why take risks 
. fund n 


with a fund manager when you can get 
ou tperf orraance in the long term from 
the index? You know that your manager 
isn’t going to move jobs, have personal 
problems or discover that their strategy 
has stopped working." 

Statistical support for index funds 
comes from the fact that investment per- 
formance will eventually return to tile 
mean. In other words, fund managers can 
perform well one year but cannot sustain 
it over the longer term. Mean- 
while, the index can sustain its 
average performance and be- 
cause an index fund has lower 
costs than an active manager by 
about 1 percent a year, it will 
come out ahead in the long run. 

While few can argue with the 
theory, problems are revealed 
in a look at the data. Unfortunately for 
index funds, the data does not always 


INDEX INVESTING 



Financial Times-Stock Exchange 
index and the C AC-40 index in Puns. 

“ It does seem that the index argument 
works best in the liquid large cap l ’U. 
even here investors should be cautious- 
she warned. “From time to time, tne 
S&P 500 will underperform fjjt’ nwf-* 1 ' 
as it did many times in the ’71*- N e% ' 
ertheless, index funds are an appropriate 
vehicle For core large-cap holding*. 

Yet using the same Mornings tar dau ^ 
base. Vanguard comes up with auif 
ferent conclusion. 

"What we find is consistent ouiper- 
formance of the index except in the 
small-cap area," Mr. Sauier said. 
“Even in Japan, over three years the 
index has beaten 86 percent of active 
managers and 67 percent over fr\e 
years. In emerging markets, the 

MSCI index bait 100 percent of 

fund managers over five 


support their case, said Kevin McDevitt, 
/no arc 


who analyzes the index industry for 


Momingstar. 
"In the 


Source: Ibbotson Associates 
Investors, the world's largest index 
manager. Furthermore, Barclays Global 
says that although indexation has a min- 
imal market share in the rest of Europe 
and Japan, it is gaining ground. • 
Andrew Skiiton, chief investment of- 
ficer for Europe of Barclays Global in 
London, explained the change of mood 
“Initially, there is a resistance to in- 
dex funds." he said "Humans are nat- 
ural ‘bulls,’ which means that they 
prefer the upside promises made by 
active fund managers. However, in- 
creasingly the retail investor is focusing 
on performance and see that they are 


InbmaiMnal Herald Tribune 


paying large fees to managers who dis- 
appoint them." 

While the underperformance of ac- 
tive managers has been embarrassing in 
the first nine months of the year, it has 
also been awkward for the index in- 
dustry. .Managers of index funds know 
that their exceptional ou tperf ormance is 
due to large-cap companies and hope 
that investors do not invest in their funds 
with unrealistic expectations. 

“We are worried that people are in- 
vesting in the fund for the wrong rea- 
sons," said Gus Sauter. marketing di- 
rector of Vanguard. “We know that 


index funds outperform' the average 
fund manager over time, but not nor- 
mally by such a large margin in the short 
term. We don’t want them to think it will 
go on like that" 

He says investors sbonld look at 
longer periods to get a more represen- 
tative idea. Over five years. Vanguard’s 
500 Index was ranked 42d out of 252 
large-blend U.S. mutual funds, with a 
performance of 158.35 percent accord- 
ing to the Chicago-based fund-tracking 
company Momingstar. Meanwhile, the 
average fund manager in the category 
only managed a return of 1 37.78 percent 


era of large cap stocks', the 
index does beat the majority of fund 
managers," be said. “And recently in 
Japan and emerging markets the active 
manager wins.” 

Momingstar says that in Japan, the 
Nikkei index, which is down 8.85 per- 
cent this year in yen terms, has per- 
formed worse than most managers be- 
cause the managers have underweighted 
the poor performing financial stocks, 
which the index obviously cannot do. 
The index also struggles badly in 
emerging markets. 

“The problem is that the index is 
weighted by market cap, which means 
they have a huge weighting in the Pa- 
cific Rim,” Mr. McDevitt said. 

Lori Lucas, vice president of Ibbot- 
son Associates in Chicago, who has 
analyzed the Russell 2000 Index using 


Momi|star data, said the index only 


beat 16 percent of fund managers over 
the past 10 years. She said it was not 
clear whether index funds beat the man- 
ager in small-company stocks and 
emerging markets, but agreed that they 
would perform better in the liquid mar- 
rflec 


uquK 

kets reflected in the S&P 500, London’s 


years. 

Both sides of the debate ac- 
knowledge that the statistical 
differences may reflect a failure 
to get a true "apples-to-apples 
comparison" overtime periods 
and the definitions of exactly what a i 
fund does. There is also a shortage oiffi 
funds with which to compare the ke> ' 
index in many markets. 

For anyone tempted by the index ar- 
gument, there are a number of things to 
watch. The first is that, remarkably, 
some funds underperform their indexes. 
This is known as tracking error and can 
occur when the index involved contains 
a large number of small stocks. Ralher 
than buying all the shares in the index, a 
fund manager will attempt to replicate 
its movements by purchasing only some 
of the stocks. 

Another issue is cost. There is little 
sense in paying a sates charge, or load, 
for an index fund and as the main ad- 
vantage of index funds is their cost, 
investors should try to find the funds 
with the lowest expense ratios. Van-/, 
guard has a microscopic expense ratio V ; 
of 0.2 percent. In Britain, however. Vir- 
gin UK Index Tracker gets away with 
annual fees of I percent, still lower than 
the normal expense ratio of 2.5 percent 
for most mutual funds. 

Another factor to consider is that in 
bear markets an index tends to perform 
worse than an active manager, who can 
bail at least out of the market ' 

For further information , cull: 

• VANGUARD 500 INDEX. I 1 3 TX7 V7 

• BARCLAYS GLOBAL INVESTORS. +1 ISI K2 ***> 


From Creative Managers, Index Formulas That Promise Extra Punch 


A NEW TYPE of fund that 
promises the same consistent 
returns of a market index but 
with some extra performance 
is piggy-backing on the recent popular- 
ity of index funds. Investors, however, 
should beware. While some of these 
funds have achieved fabulous en- 
hanced-index returns, the vast majority 
have underperformed. 

Investors, nevertheless, find itdifficult 
to resist the enhanced-index message, 
and a look at Smith Breeden's Equity 
Plus fund shows why. Over five years, it 
is ranked 20th out of 224 American 
growth- and- income funds, with a return 
of 178 percent, according to Moming- 
siar. the fund-tracking film in Chicago. 
Far behind was the Vanguard S&P 500 


Index fund, which rose 158 percent but 
was still comfortably ahead of most fund 
managers, in 48th position. 

John Sprow, manager of Equity Plus, 
uses an innovative investment strategy 
involving futures and mortgage-backed 
securities. He said there was no reason 
why his fund should not continue to beat 
the index. His fear is that other enhanced 
index funds give the sector a bad name. 

“Unfortunately, most enhanced in- 
dex funds are neither enhanced nor in- 
doted,” he said. “The majority tend to 
underperform." 

Mark Riepe, an analyst at Ibbotson 
Associates in Chicago, agreed. 

“When we started looking into it, we 
expected that most of the funds would 
outperform the index,” he said. "The 


question in our minds was the amount of 
risk they were taking to do this. Instead, 
we found that most of diem underper- 
formed.” 

Of the 10 enhanced index funds with 
more than a three-year track record in 
the Ibbotson study, only three managed 
to beat the S&P 500. - 

Dean Winer’s Value. Added Maiket 
Equity was the worst-performing fund 
in the survey. Since its debut in Decem- 
ber 1987, Value Added has an annua] 
compound return of 14.74 percent, 
while the S&P gained 1 8.53 percent. 

The explanation for the diversity in 
performance is that each fund uses a 
different technique in its quest to out- 
perform the index. A common tech- 
nique involves keeping the same pro- 


tions of the various industries as the 
5&P 500 but trying to pick the best 
stocks in each sector. 

Dean Witter, however, has another 
approach. It hopes to beat the index by 
giving an equal weighting to each stock 
in the S&P gauge, rather than allowing 
big-capital stocks more influence, as the 
index does, on the assumption that smal- 
ler stocks will eventually outperform 
larger ones. Unfortunately, this strategy 
has been sabotaged by the recent out- 
performance of the big stocks. 


Smith Breeden’s Equity Plus fund, on 


the other hand, uses a futures-related 
strategy to mimic the S&P index, put- 
ting only part of its investments to work 
this way. To achieve its ontperform- 
ance, it invests the rest of its cash in 


mortgage-backed securities. 

PIMCo’s Enhanced Equity Institu- 
tional fund, another top performer, also 
uses a futures strategy but invests the 
spare cash in traditional bonds. 

A fund that has attracted attention this 
year is the Analytic Enhanced Equity 
fund, managed by Analytic TS A Global 
.4s set Management. It has outperformed 
the S&P by about 8 percent since its 
inception on Jan. 10. It does it by fol- 
lowing the principles of the super-stock 
concept pioneered by Bob Haugen. 

Computers screen all companies in 
the S&P 500 for 70 characteristics and 
compile a portfolio of 80 stoqks. The 
portfolio has the characteristics of the 
index bat with enhanced qualities. 

The stocks it comes up with so far 


rend to be blue cliips. such as Coca-Cola 
Co. and General Electric Co. 

“When people look at our portfolio, 
they can't believe it." said Harin de ■ 
Silva, who manages the fund and 
worked with Mr. Haugen at the Gradu- 
ate School of Management of the Uni- 
versity of California, Irvine. "They * 
don't see a good story; it looks pretty - 
boring. However, our model has a track- 
ing error close to the S&P and should 
deliver 2-3 percent outperformance a 
year." — IAIN JENKINS 

For farther information, call: 

• ANALYTIC TSA GLOBAL ASSET MANAGEMENT. I 
2I5787 973S 


• SMITH BREEDEN. 1»3«U5JSI .. 

• PTMCO I 714 640 3051 In the United Stales, indiirluuj 
ntaun cun e*lL Ml-t'm I SrJJ 426 0(07. jnd msfinuaxLil 
intraim can uil I S00 *27 4W8 


In U.S. 9 Market Is Key to Mood Shift 


By Louis Uchitelle 


[ WICE IN the 1990s, the U.S. 
economy has produced nearly 
identical periods of booming 
growth. Yet the experts 
it what was happening and saw 
rsi surge, in 1994, the makings 
mster and in the second, this 
rvana. 

g reason for the shift to op- 
from pessimism appears to be 
k market. Sustaining the Dow 
industrial average at record 
i gradually becoming as much 
ty among investors as fighting 



iiu iw — 

ronomy will continue along 
it prosperous course, un- 
fay a rising inflation rate, or 
threat that this might hap- 

;ock market is coloring every 
• said Peter Bernstein, an 
t and consultant “It is no 
i consequence of confidence 
use of it It now extends way 
self in its influence, pushing 
jackground concerns about 

rveyors of the new optimism 

onomists, executives stock 

traders, and the mutual- and 
and managers who, m their 
forecasts and pronounce- 
ipe the public perception of 

al economy. , 

ake their cue from Alan 
i chairman of the Federal 
loard. And in sharp contrast 
wth surge three years ago, 
usxan seems to have given 
or this one to continue, 
a’s announcement on Tues- 
pterest rates would remain 


unchanged was the Iatesr reaffirmation 
of this O.K.. In the new dynamic, 
raising interest rates to slow the econ- 
omy and keep inflation in check would 
almost certainly provoke a sharp de- 
cline in stock prices, and falling stock 
prices would in turn discourage spend- 
ing and investment far more than in the 
recent past 

With the Dow average up nearly 24 
percent this year, rising stock prices 
nave become for millions of Amer- 
icans a powerful source of confidence, 
wealth and spending, sustaining the 
economy. 

"We have a huge vested interest in 
keeping stock prices up,” said Albert 
Wojnilower, senior economic adviser 
to Clipper Group, a Wall Street firm. 
“Millions of people who have put 
their money into stocks want to be 
optimistic, and corporations have in- 
vested on the basis of their optimism. 
It won’t change unless we get slapped 
in the face with evidence of rising 
inflation.” 

The shift in attitudes — from pes- 
simism to optimism, from expectations 
of rising inflation and a weakening 
economy to a growing confidence that 
neither will happen — shows up in 
striking fashion in a comparison of the 
two nearly identical growth periods, 
each covering nine months. 

The first, starting in October 1993, 
produced an average growth rate of 4.3 
percent, which is quite powerful. Dur- 
ing the second surge in growth, be- 
ginning last October and running 
through June” of this year, the gross 
domestic product rose by an average 
of 4.2 percent, according to final data 
for the period, released last week. 

The inflation rate also behaved in 
strikingly similar fashion in each peri- 
od. It averaged 17 percent in 199344 
and 2.4 percent in 1996-517. More im- 
portant, the inflation rate fell during 


both periods. 

But while low inflation is taken as a 
given in the optimism of 1 997, that was 
not the case three years ago. Although 
inflation was edging down, the expec- 
tation then was (hat strong economic 
growth would inevitably generate a de- 
structive rise in the inflation rate. 

“We all thought then that inflation 
must follow excessively strong 
growth," said Bruce Steinberg, chief 
economist ar Merrill Lynch. 

“That same view would resurrect 
itself now in a second, of course, if Mr. 
Greenspan were to say that he was 
worried on this count. But he does not 
say that.” 

The unemployment rate also fell 


during both periods, although it was 
in 1993-94, averaging 6.5 per- 


higher 

cent, than in the most recent nine 
months, when the average was down 
to 5.2 percent. 

There is irony in this difference. 
With fear of inflation the dominant 
concern three years ago, there was 
much speculation that falling unem- 
ployment' would soon result in labor 
shortages, rising wages and acceler- 
ating inflation as companies raised 
prices to pay the higher labor bills. An 
unemployment rate of just over 6 per- 
cent was thought to be die flash point. 

Indeed, such thinking was a big 
factor in the Fed’s decision to slow the 
economy and dilute the demand for 


labor by raising interest rates to 6 
orfror 


percent from 3 percent, starting in Feb- 
ruary 1 994. Today, the unemployment 
rate is more than a percentage point 
below the 1993-94 level, but die un- 
employment-inflation tradeoff is 
hardly discussed. 

New York Times Service 


James Classman, whose column 
regularly appears in The Money Re- 
port, is on vacation this week. 


The Argument for Indexing 


Year-to-date Rank 
return out of 
661 


l-year return 


Rank 3-year return Rank 
outof out of 

635 zrmMS.'ii&lA . 443 


6-year return Rank 
outof 
252 


10-year return Rank 
outof 

fi-ca 127 



4 


Large-Blend 

average 


Source: Momtngstw 




-MW 

InkxtuijoBa] Hcr-Jj TnNifu.- 


BRIEFCASE 


For Some, Shine 

Is Off Italy Market 


Italian slocks and especially 
bonds have been darlings of 
the investing public this year, 
rising with die faith in Italy's 
ability to make it into the first , 
round of European economic ‘ 
and monetary union. Souk of 
the biggest gains have been in 
shares of banks, several of 
which have doubled in value 
in a matter of months. 

Now, analysts at two in- 
vestment banks suggest, it 
may be time to take the 
money and run. 

“Despite the companies’ 
efforts, we see only moderate 
prospects for improved re- 
turns from the Italian banking 
industry,” analyses at Lehman 
Brothers wrote to clients. 

The huge run-up in banks' 
share prices is the result’ of 
improving profitability as in- 


terest rates fall and economic 
strength helps to wipe away 
their customers’ bad debts. 
The analysts, Robert Law and 
Sheila Garrard, warn that this 
may be as good as life gets for 
the banking sector and that it 
may not be good enough to 
justify current share prices. 

"Even fully discounting 
recovery in profitability, we 
believe the banks are capable 
of sustaining returns on equity 
of between 9 percent and 15 
percent and that this would 
give investors average returns 
of 9 percent,” they said. 

In other words, not much 
more than Italian investors can 
get in short-term cash depos- 
its, but at much greater risk. 

. .“We therefore argue thai 
valuations fully reflect recov- 
ery and would be exposed if 
recovery is delayed, “they ad- 
ded. What could delay recov- 
ery? According to analysts at 


Credit Suisse First Boston, a 
further fall in interest rates. 
’Commercial banks’ lend- 


ing margins might narrow 
’ f if short-term raies coJ- 


afier the bank reported “dis- 
appointing first-half result?,. ” 
tlH7i 


sharply i 

lapse, as has been the case in 
this easing cycle so far.” they 
said. “A too-rapid fell in in- 
terest rates could pur pressure 
on domestic banks’ balance 
sheets as deposit rates fall 
slower than lending rates'.” 

This can be the case in a 
competitive banking sector 
anxious to keep customers 
happy. The spread between 
the rates at which banks make- 
loans and the rates they pay 
depositors has shrunk to 0.8 


Foreigners’ Guide 
To Russia Equities 


percentage point from double 
that amount two 1 


Russia's stoc 
Russian equir 
booming, but 
and investabilii 
licly listed cor 
seem inscrutabl 
vestors. To thn 
on the situatio 
Brokerage, a u 
dependent Mos 
vestment house, 
a Russian Equjt 


— amount two years ago. 
John Leonard, an analyst at 
Salomon Brothers Ede., reit- 
erated his buy recommenda- 
tion for one bank, San Paolo, 
despite cutting his 1997 earn- 
.idgs estimate by 7 percent 


90 of Russis 
most actively 
nies, ranging 1 
riant oil and j 
GUM, whose 
department sti 
Russians and 


■T 








INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, OCTOBER 4-5, 1997 


PAGE 19 



$Even Stocks Can’t Beat 
U.S. Real Estate Funds 

REITs Also Open to Foreign Investors 


More Ways to Put the World in Your Portfolio 


By Andrew Rosenbaum 


their shares. 


although there are others for the more- 


closed-end funds trade on many in- developed emerging markets, includ 


The American Stock Exchange is mak- 
ing a cottage industry of index-linked 


temational markets, with London being ing Hong Kong, Malaysia, Mexico and investments, and it has several intema- 
a particularly popular venue. Singapore. tional products listed. Among them are 

Recently, many fond companies Each WEBS or country basket bolds Eurolop IK), Hong-Kon| Options, a Ja- 


By Judith Rehak 

E verybody knows that 

the U.S. stock market has been 
soaring for the past three years, 
but last year you could have 
done better In real estate mutual funds, 
which are easily available to non-Amer- 
ican investors. 

Riding the crest of the recovery in 
American real estate from its sharp 


4 produced a stellar 31.12 percent return 
\ on average, beating the S&P 500 by a 
hefty 8.17 percentage points according 
to Momingstar, die Chicago-based mu- 
tual-fund tracking company. 

Offshore property funds specializing in 
U.S. real estate have been reflecting the 
buoyant American market, as well. Al- 
though their returns have not been quite as 
bountiful this year — the average offshore 
vehicle was up 1 5.6 percent as of SepL 23 
— sponsors of these funds con- 
tend that the market is still /«}/-> 
healthy, and even beater, a de- 
fensive play for skittish investors Cj/qS 
who want a stake in die United 
States but ate worried about the 
. high prices in the stock market. ‘ 

£. “What we have now is the 
* real estate market continuing ro 
' chug along at returns of 9 to 13 percent 
annually,'’ said Russell Platt, manager 
of Morgan Stanley’s $200 million off- 
shore real estate fond. “We expect it to 
stay in that sweet spot until there is real 
overbuilding. New construction is be- 
ginning again, but it is still far from the 
level Of a Softening mar ker " 

U.S. property mutual funds buy 
mostly real estate investment trusts, or 
REITs, which are publicly listed 
companies that own properties ranging 
from hotels and apartments to industrial 
parks and office buildings. There are 
about 200 listed REITs, and selecting 
the most profitable is not on’ 1 a judg- 
ment call on their managemen. and bal- 
^ once sheet, but also on geography, local 
1 marker conditions and property type. 

™ -Now, for example, fond managers 
favor the West Coast and the Northeast 
which have been die last regions to 
recover from the real estate bust, and 
thus have the most growth ahead. In 
terms of properties, offices and high- 
end hotels are preferred. 

“We have about 35 percent of our 
portfolio in office properties, because 
they have been the most depressed part 
of the market,” said Daniel Pine, who 
runs the Alliance Real Estate Fund. His 
enthusiasm stems from a surge in office 
jobs in the service sector. 

Among his top holdings are Crescent 
Real Estate Equities Co., run by the 
billionaire investor Richard Rainwater, 
with about two-thirds of its holdings in 
offices, and Beacon Properties Coro., 
which is focused on downtown office 
space in Boston, where rents are rising 
and there is little new construction. 

Consolidation in REITs is another cur- 
rent theme. Two weeks ago. Sam Zell, 
chief of Equity Office Properties Trust, 
the biggest REIT in the country, agreed 
f . to buy Beacon for $3 billion in slock. 

1 ' Another top office pick for real estate 
■ fond managers is Boston Properties, 
with buildings in strong markets such as 
Boston. New York and Washington. 

Barbara Rubin, who manages the Lux- 
embourg -domic iled American Phoenix 
Real Estate Fund, bought the REIT at its 
initial offering price of $25 in June. It is 
now trading at about $33. and she likes its 
prospects, noting that its founder, Mor- 
timer Zuckerman, has 30 years of ex- 
perience in the business. " They’ve had a 
good run and they’re buying more prop- 
erties," she said. 

Upscale hotel REITs are also popular 
with these funds, especially those op- 
erating in New York, Boston and Son 
f Francisco, where consmiclion has 
ground to a halt, and tourists and busi- 
ness travelers are filling hotel rooms to 
capacity. Still, managers are picky. 

“I don’t like them below full-service 
hotels, where they are approaching the 
overbuilding stage," said David 
O'Connor, co-manager of the offshore 
Pcrforma Real Estate Securities fond. 

Among his favorites are Starwood 
Lodging Trust, which announced a 
51.57 billion deal last month to acquire 
Wes tin Hotels & Resorts, creating the 
world's third- largest hotel company. 

“They've also purchased properties 
from distressed sellers, such as the Do nil 
Hotel in New Yotk City, where rooms are 
renting for $100 a night, well below the 
New York City rale." said Mr. O’Connor. 


‘ They’re just beginning to reinvest in that 
project, and their portfolio has a tremen- 
dous amount of room for appreciation." 

With some REITs looking a little 
pricey right now, Mr. Platt, whose top- 
performing Morgan Stanley fund is up 
about 19 percent this year is concen- 
trating on value plays. 

One overlooked company, in his 
opinion, is Carr America Realty Corp., a 
nationwide office developer tliat has not 
participated in the strong office recov- 
ery because it builds, rather than buys 
office buildings, creating a temporary 
short-term drag on its earnings. 

He also owns Brookfield Properties, a 
Toronto-listed stock whose biggest asset 
is a 70 percent stake in the World Fi- 
nancial Center in New York. “We think 
the Manhattan office market is turning 
around,” said Mr. Platt, who is also 
doing some selective bottom fisliing in 
the hard-hit retail sector. 

There are some niche plays in overbuilt 
sectors, such as apartment RETTs. Ms. Ru- 
bin has singled oat Bay Apart- 
, meni Communities. “They’re in 

San Francisco, where there is very 
limited new construction, and 
continuing strong demographics, 
' and they have strong manage- 

gffagjr mem.” 

— •! * 3 Although these offshore 
funds are directed lo non- 
American investors, they still have to 
contend with the U.S. Internal Revenue 
Service, which withholds a 30 percent 
chunk of their dividends. To com- 
pensate for this, offshore real estate 
funds are structured differently from 
their American counterparts, generally 
reinvesting a portion or, in some cases, 
all of their dividends to convert current 
income into capital gains, which are 
taxed at lower rates. 

Some funds also buy convertible bonds 
issued by REITs, which perform much 
like equities, and produce interest, which 
is not subject to U.S. withholding. 

In the case of Alliance, Phoenix and 
Morgan Stanley, American investors 
can buy these funds in their U.S. ver- 
sions as well, managed under the same 
strategy by the same individuals — and 
without tire withholding hassles. 

For further information, call: 

« Alliiocc Raj Baa* Funl Offshore ioreatora. 352 227 713 
American mom, I 201 319 4000. or. tall-far nothin the 
OtntaJ Stater I SOO 247 4154, 

■ Amman Phrena U.S. Real Emit Fond. QfTihorr lavaturt. 
352 404*4621 i *n*ncm mreaon. 1 203 253 1000. nr 1 660 
403 1000. 

■ Morgan Smkv U.S. Real Emaic Fund. Offshore Investor*. 
352 23 470 15 111 American investor*. 1 617 357 8000, or. MU- 
frec Botina the l’ rated Slates. I 800548 7786. 

• Perfonta Real Estuc Scnmlm. 41 75 2332748. 


"NVESTOR5 LOOKING for- the a particularly popular venue, 
safest way into stock markets in Recently, many fund companies 
foreign countries have tradition- have started offering single-country 
.ally had only a few options. But open-end funds. These have the at- 
the choices are becoming more mi- traction of being easier to redeem than 
merous, making it more of a buyer’s the closecLend funds and they avoid the 
market, if you know what to choose. complex question of net-asset value: 


tire dominant stocks in a particular mar- pan index and a Mexico index. 


The traditional vehicle for investing The price of the fund simply reflects the 
in another country’s stock market hag price of the securities it holds. WEBS can protect investors from and is linked to the Japan index, 

been the closed-end mutual fond. Lately, But there are risks here, too. Mark foe vagaries of mutual funds and their Still another opportunity for in- 
however, open-ended funds have joined Mob ins, head of foe enrerging-markets managers, but they leave one open to vestors to gain access to international 
the fray, and they have been followed by division of the Franklin/Templetoa the sometimes brutal volatility of in- markets is offered by an unusual 


These have foe at- ket index to replicate returns in that 
easier to redeem than nation. There are 17 WEBS portfolios 
□ds and they avoid the from which to choose: 10 in Europe, 
n of net-asset value: four in Asia and one each in Australia, 
md simulv reflects the Canada and Mexico. 


Two call warrants are available on 
foe Amex, one linked to foe Hong Kong 
30 index and another for foe Japan 
index. There is also a product called foe 
Nikkei note, which is much like a bond 


more exotic index-linked products. Group of funds, said that most 
Until recently, if you wanted to in- emerging markets had too few mdex 
vest in a single country without actually investment-grade stocks for investing 
picking and buying individual stocks, these funds to be attractive. /n 

your best bet was a closed-end country That leaves the funds vul- 
fund. These have a fixed number of nerable in a falling market, be- _ S7\i 
shares outstanding and are traded just cause foe fund manager, 
like stocks on exchanges or over foe obliged to redeem shares, will w.. 
counter. They are denominated in the have to sell foe most liquid 
currency of foe country in which they stocks in order to pay the redemptions, f 


temational markets. Those in- product created by Merrill Lynch & 
vestors who were seeking to Co., called m arket-i ndex target-term 
mirror the performance of the securities, or MITTS. Introduced five 
Malaysian market this year, years ago, these securities basically 
for instance, would have seen have a guarantee against loss — foe 
the dollar value of their initial investment is returned in full. 
WEBS tumble by about half, sometimes with inrerest — and in- 
Fund managers themselves vestors can do even better if foe index 
cantion that they take a "pass- on whicha given product is based has a 


Fund managers themselves 
cantion that they take a “pass- 


currency of foe country in which they stocks in order to pay the redemptions, ive” approach to investing — they seek big gain over foe life of the MITTS, 
trade rather than the country in which That hurts foe remaining shareholders, merely to ape the returns of foe Morgan These instruments are traded through 


they invest 


who are left holding foe less-liquid, and 


Because of this, structure, foe value possibly less-lucrative, shares. 
ie stock market places on a closed-end Even good times, when more in- 


foe stock market places on a closed-end Even good times, when moi 
fund may be higher, or. more often, vestors want to get in, can hurt < 
lower than the value of the securities ended ■ funds, because foe man _ 
that the fund holds. may be hard-pressed to find a high- 

Sometimes this discount to foe net- quality, liquid stock in which to invest, 
asset value can be advantageous. If a 
fund grows in popularity because the ry-rrp n ry 
stock market of the country in which it W jDJDO CCLIL DFO t€Ct 
invests is doing well, then foe discount . - , 

could dwindle as net-asset value rises. l7lV€StOrS P‘0171 trie 
In such a case, the shares of foe closed- • J r l 

end fund would rise faster than the VCLSQTieS Of lTIUtUCU 
value of its portfolio. - , . 

Among closed-end country funds panels CLIKI tfl€ir 
tr ading in the United States, discounts J 
currently range from about 12 percent 171£LTLCUf€T$. 

to 20 percent. ® 

A speculative tactic is to look for 


Stanley Capital International indexes, 
not outrun mem. 

In addition, the WEBS prospectus 


brokers unti l they mature. 

A new MITTS that is linked to a 
group of international exchanges — 


vestors want to get in, can hurt open- cautions that there is no hedge against Amsterdam, London, Madrid, Milan, 
ended - funds, because the managers currency fluctuations — a caveat that Paris and Stockholm in Europe, as well 


can make that decline in Kuala Lumpur as Australia and Hong Kong — is being 


stocks all the harder to bear for in- 
vestors in other countries. 

Like tnntiial funds, WEBS charge 
manage ment and other fees that in- 


registered. Another Ml ITS is linked to 
foe Amex's Japan index and another is 
linked to another European index. 
Although most of these investments 


vestors do not face with stocks, but this are issued by Merrill Lynch, similar 


A speculative tactic is to look for dependent on foe stock-picking and 

funds with deep discounts. Because a This problem, analysts say, is partic- trading skill of foe individual fund 
closed-end funos structure is similar to ularly severe in emerging markets, manager. If you believe, for instance, 
that of a regular company, the funds are many of which place ceilings on how that Tokyo is ripe for a comeback, 
subject to hostile takeover bids, which big a stake foreign investors can own in- WEBS may be for you. 
could result in their portfolios being a company. Of course, foe creation of the Euro- 


could result in their portfolios being 
sold off and foe proceeds split among 
investors. 

In other cases, foe fund's directors 
will vote to change to open-end status, 


a company. Of course, foe creation of foe Euro- 

Mr Mobius and foe naysayers have a pean single currency will offer even 
point. In emerging markets, at least, greater security for countries that par- 
open-end funds have performed worse tidpate. With foe standard European 
than closed-end funds over foe past currencies fluctuating less, and the 


drawback can be more than offset by products are offered by other Arms, 
savings m brokerage fees. Salom on Bro thers Inc., for example, 

• Still, for those seeking to make a has a MITTS -like security due in 2002 
relatively low-cost bet on developed that pays foe increase in foe Japanese 
markets in Europe, Japan or Australia, Nikkei index plus a 42 percent bonus. 
WEBS may be the vehicle of choice. Another product dedicated to the in- 
After all, foe performance of foe temational investor is the global an- 
closed- and open-end country funds is nuity. Delta Life Corp., an insurance 
dependent on foe stock-picking and company based in Memphis, Tennes- 
trading skill of foe individual fund see, last year created an annuity called 
manager. If you believe, for instance. Index Advantage International, which 
that Tokyo is ripe for a comeback, links its earnings to an index derived 
WEBS may be far you. from indexes in Britain, France, Ger- 

Of course, foe creation of the Euro- many, Japan and Switzerland, 
pean single currency will offer even The product provides a minimum 
greater security for countries that par- earnings rate, which may please those 
tidpate. With foe standard European who love international markets but hate 
currencies fluctuating less, and the the notion of risk. 


that Tokyo is ripe for a comeback. 


which allows investors to sell shares year, according to Micropal Ltd., which single currency, the euro, held up by the 


back to foe fund at foe net-asset value. 

But there are significant disadvant- 
ages to closed-end funds. One reason 
why most funds trade at a discount to 
their net-asset values is that in a panic, 
the managers are not obliged to liq- 
uidate their investments to meet re- 


tracks mutual-fund performance. 


central banks of all the countries in- 


A new way of investing in a specific volved, betting on Italy, for example, 
country's market is via World Equity will be a lot less risky. 

Benchmark Shares, known as WEBS. But WEBS are clearly for the in- 


But WEBS are clearly for foe in- 


U nlike mutual funds that try to beat vestor who understands foe workings 
the market performance, WEBS seek to of foreign economies. 


try to match foe 


demptions.aswouldbefoexasewifoan market indexes. 


race of foe 
its say this 


Investors who are not sure about why 
employment is rising in Germany, or 


open-ended fund. In the long term, this offers a relatively low-cost, passive who do not understand foe financ ial 270104 a 


For further information: 

• THE AMERICAN' STOCK EXCHANGE lias several m- 

l ana nccal indn-liirircd product*. Vuit in Web site as 
TOw.smeJUJOiB. dm took under Option* A Derivatives and 
SPDRe&WEBS. 

•DELTA LIFE'* product* ore told through agents, but xn- 
veuoracan call 1 901 683 1222 for ratbmmxm. 

• THOMAS J. HERZFELD ADVISORS srlb on "Encyc- 
lopedia of Chaed-End Fund*." with information about 4*0 
riosed-cod food*. many of which uc country fond*, b am* 
$135 To Oder, ctniact the ccmpraiy m P.O. Box 161465. 
Mtimu. Hondo, 3311$ letepfctMe, I 30S27! 1900. ta I 305 


may be a good thing if foe country’s 
economy rebounds, but investors who 
need their cash quickly must accept 


way of Investing in a portfolio of equit- 
ies in a single country. 


totems that the Japanese have been 
ing, it is best to stick with a broad er- 


These no-load funds are available based fund that will be independent of a 


whatever price the stock market pats on mainly for the West European markets, national economy. 


■THE INTERNET CLOSED-END INVESTOR SITE Its* 
sod evaluate! oil major imenionnnaj dcwS-end (md*. It can bo 
counted ol wrojccFl root 

• WEBS ON "WE WEB Icon Internet site donned tofoDowing 
■ad evcl astute the pafeanmee oJ these products, h era be 
vtawJ at fatiptftoetoiohemtunti. 


A View of Funds’ Future: 
More Money, Lower Costs 


By Carole Gould 

L OWER COSTS for investors. 
Fewer fund groups. And more 
money invested.- That's what 
today’s fund-group leaders en- 
vision for the mutual-fund industry at 
the end of the century. 

The findings were part of a study 
conducted over the last two years by 
Marcia Selz, president and chief ex- 
ecutive of Marketing Matrix, a research 
firm in Los Angeles that specializes in 
the financial-services industry. Ms. Selz 
talked ro 59 executives of fund groups 
about their industry. 

The consensus was that fund costs 
would be much lower overall because of 
increased competition among fund 
groups. The executives expect lower 
annual expenses and smaller manage- 
ment fees, as well as fewer and lower 
initial sales charges, or front-end loads. 

Investors may also help push down 
fees. 

“Educated, smarter investors make 
us watch our prices and fees,” one fund 
leader told Ms. Selz. 

A study released last week by Upper 
Analytical Services in Summit, New Jer- 
sey, concluded that the fond industry did 
not now enjoy the economies of scale that 
would allow fund companies to lower 
fees charged to investors as assets grow. 

Nonetheless, Ms. Selz said. “If com- 
petitive pressures continue as they have 
been, mutual fund leaders will find ways 
to develop economies of scale." 

Nearly all the respondents to herstndy 
said finan cial advisers would work on a 


fee basis by 2005, instead of a transaction 
basis, creating a more service -orieated 
business. Advisers will be rewarded for 
continuing money-management perfor- 
mance, rather than for sales alone. 

And while investors will allocate a 
bigger percentage of their investment 
assets to funds, the industry itself will 
experience consolidation, executives 
said. But they disagreed on how the 
consolidation would occur. 

Some said smaller companies would 
be swallowed by larger ones; others said 
foe Internet would build the market for 
small groups by giving them direct ac- 
cess to investors, leaving foe midsized 
fund families to consolidate into the 
larger groups. 

■ Personalized Updates On-Line 

The Mutual Fund Channel, a new , 
Internet service, will deliver personal- 
ized daily updates on fund performance 
to subscribes’ computers. 

After telling the service how many 
shares they own, investors can receive 
price and value information on up to 20 
of their funds. They can also get his- 
torical data, profiles, market analysis 
and news. Data are available on more 
than 5,800 funds. The performance and 
ranking data are from Upper Analytical 
Services. 

Free software ro receive this infor- 
mation will be available to subscribers 
at foe Mutual Fund Channel’s sire on the 
World Wide Web (www.mutualfund- 
channel.com) starting Tuesday and 
through Back Web Technologies chan- 
nels twww.backweb.com). 

The Hew York Times. 


Mw# aging Money In 
: %t/J Climates 



REX 97 


THE PREMIER OFFSHORE EXHIBITION 

2-4 DECEMBER 1997 
BUSINESS DESIGN CENTRE 
LONDON 

SHOREX 97 is the ultimate networking event for offshore 
professionals. During the three days of the exhibition and 
conference, Shonex 97 brings together offshore service 
providers, intermediaries and clients to share the best in 
offshore professional services and offshore finance. If you 
are a lawyer, accountant, private banker, trust manager 
or intermediary involved in the offshore industry, or 
simply an investor, and would like to know more about 
the event, either detach this slip and send it to: 

SHOREX Ltd., 4 Heathgate Place, Agincourt- Road, 
London NW3 2NU, UK tel: +44 171 482 1000 QR 
fax; +44 171 482 1100 OR emoil:!nfo@shorex.com 
(http://www.shorex.coni]. 


l Eac h profile includes deserip- 
‘ tions of the company’s ac- 
tivities, a three- to four-year 
financial history, and a 
“plans/prospects” section. 

For investors reluctant to 
brave the Moscow Stock Ex- 
change, foe guide lists 17 
companies that have issued 
depositary receipts, shares 
that trade on exchanges and 
over foe counter in London 
and New York, and 12 more 
that plan to issue them. { IHT ) 

•THE GLIDE n nubble lira Ptttxqal 
CrmmtimaDotn in Sc* VtrL. irlerhontr 1 212 
303 7611. to 1212 303 76«0. 

Deutsche Bank 
Starts 9 tl-S. Funds 

Deutsche Bank AG has 
joined the parade of European 
money managers entering the 
1 American mutual fund mar- 
ket with the introduction last 
week of nine funds for in- 


dividual investors. 

Eight of foe funds are sim- 
ilar to existing vehicles 
offered in Europe, and run by 
foe same portfolio managers 
of foe DWS Group, Deutsche 
Bank’s asset management 
subsidiary. Of these, three are 
equity funds targeting Ger- 
man, Japanese and European 
mid-cap companies. 

“European mid-caps are a 
very interesting sector that 
will be a beneficiary of Euro- 
pean Union consolidation, 
and this is foe only such fund 
offered in the United States,” 
said Christian Stronger, chief 
executive of DWS. 

Hie mid-cap fund is one of 
two foot foe U. S. Securities & 
Exchange Commission is al- 
lowing ro advertise foe past 
performance of its European 
counterpart for foe U.S. mar- 
ket Its average annual return 
in dollars for foe past three 


years to the end of June 1997 
has been 15.58 percent, with 
foe sales load. 

Other funds include Top 50 
series offerings, whose man - 
agers will cherry-pick the top 
50 companies in Europe, foe 
United States and Asia, and a 
Top 50 worldwide fimd. 
These companies will not ne- 
cessarily be chosen by size of 
market capitalization, said 
Mr. Stronger, but will focus 
on quality and market share. 
Rounding oat the fund family 
are two fixed-income 
vehicles, foe Deutsche Global 
Bond fund, and foe Deutsche 
European Bond Fund. 

The funds will have a min- 
imum initial investment of 
$5,000, and will be sold with 
from- or back-end loads, to 
the bank’s private banking 
clients in foe United States, 
and through U.S. broker- 
ages. (IHTi 


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PAGE 14 



lnvesi 

The Dow 


Source - Boon 


Very I 


Raytb 


WASHE 
eralMoton 
approval T 
ingthecorr 
largest deft 

Raytbeo 
businesses 
for a comi 
settlement 
of any of i 
sidered to : 


Ford I 


PORTC 
said Thors 
in souther 
cosur free 

The nei 
identified 
would be 
would brii 
in Brazil 1 


• Mobil C 
of Germai 
in Venezx 
nation’s C 


•U-S.fai 
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• Fujitsu 
Inc^havi 
Commiss 
ent violat 


Thursd 

The top 
up toft 


PAGE 20 


World Roundup 


Swiss Will Appeal 


soccer The Swiss champion 
Sion said Friday that it would ap- 
peal a decision by European soc- 
cer’s governing body that its first- 
round, second-leg match in the 
UEFA Cup be replayed. 

In an unprecedented ruling, 
UEFA ordered Sion and Spartak 
Moscow to replay the return leg, 
which coded in a 2-2 draw and con- 
troversy, with the Swiss club ar- 
guing that the goals were too small. 

UEFA's Control and Disciplinary 
Committee said Tuesday’s match 
would be annulled, although the re- 
sult of the first leg in Switzerland, 
which Spartak won, 1-0, would 
stand But Sion maintained that it 
was not interested in a rematch and 
continued to demand that it be 
awarded a 3-0 victory and advance 
to the next round (Reuters) 


Langer in the Lead 


golf Bernhard Langer shot a 3- 
under-par 69 on Friday in the 
second round of the German Mas- 
ters to bold a one-shot lead over 
Jose Maria Olazabal of Spain and 
Thomas Goegele of Germany. 

Langer, trying to win his third 
German Masters, shot 68 on Thurs- 
day for a two-round total of 7-under 
137. The German would have been 
even further ahead, but he took a 
double-bogey six on the final 
hole. (AP) 




Wayne Gretzke could earn up 
to $10 million per NHL season. 


Payday for the Great One 


HOCKEY The New York Rangers 
have given Wayne Gretzky a raise 
and a contract extension. Gretzky, 
who was to earn $3.97 million this 
season, will instead get a guaran- 
teed $7 million and a guaranteed 
$5.5 million next season. Individu- 
al and team performance bonuses 
could raise his wages to $10 million 
each season. (NYT) 


Anger in Australia 


athletics Australia’s sporting 
community united Friday against 
the appointment of a former East 
German, Ekkart Arbeit, as the na- 
tional athletics coach because of 
that country’s past links to a pro- 
gram of systemized doping. A 
former Australian Olympic sprinter, 
Raelene Boyle, said: “It’s almost a 
step of acknowledging that drugs in 
sport are here to stay, so we might as 
well have a coach who understands 
that culture.” ( Reuters ) 


Arc de Triomphe Sunday 


HORSE RACING Helissio will be 
looking for a repeat in Sunday's 
Arc de Triomphe, Europe's most 
prestigious borse race. (AP) 


Scoreboard 


*7* fL nTESMnMMLM* 

itcraio^^tenbttne. 

Sports 


SATIIRDAY-SUNDAY, OCTOBER i-5, IWj 


Now, the Pressure’s on the Yankees 


By Jack Curry 

N<*r York Tunes Service 


NEW YORK — The division series 
between the New York Yankees and the 
Cleveland Indians is a serious series 
again. Very serious. 

On Thursday night, the Yankees 
wanted to ride Andy Petti tte's arm and 
their momentum from winning the 
thrilling opener to flatten the wobbly 
Indians and set up a brief, yet enjoyable, 
weekend for themselves in Cleveland. It 
never materialized. 

Instead, Petti tie and the Yankees mis- 
handled a lead, mishandled one routine 
play that should haunt them and were 
handled by a 21-year-old pitcher who 
was in danger of being removed from 
die game in die first inning. 

But Jaret Wright hung on by his 
cuticles during a dicey first and wound 
up outpitching Petti tie as the Indians 
rolled to a 7-5 victory and tied the three- 
of-five series at one game apiece. 

So the Yankees should not make any 
plans for a rematch with the Orioles in 


the American League Championship 
Series just yet The Indians are dei- 


and on the brink of extinction to ex- 
perience a rapid revival. 

If Petrine was crisper, if Chad Curtis 
did not misplay a liner and if Wright did 
not tum from wrong to right after the 
first inning, the Yankees would have 
been able to breeze into Jacobs Field 
needing just one victory in three games 
to take the series. They would have felt 
confident. Now they should feel cau- 
tious, with David Wells scheduled to 
pitch Game 3 Saturday and David 
Cone's status for Game 4 growing more 
and more tenuous. 

After Wright left, the Yankees had a 
last gasp against a shaky Cleveland bull- 
pen in the eighth. Jose Mesa hit pinch- 
hitter Mike Stanley on the left elbow with 
die bases loaded to force in the fourth run, 
but he rallied to get pinch-hitter Wade 
Boggs on an infield pop out and Tim 
Raines on a tapper to squash the threat 

Pettitte was supposed to be the savvy 
pitcher who would lead the Yankees to 
aQ alrntYS t- inM imwiirnnhlf. 2-0 edge in 

die best-of-five series, especially after 
Wright started off by walking three bai- 
ters in rite first and all of them scored. 


Series just yet The Indians are def- 
initely alive after bouncing New York’s 
premier starter after five innings. And 
the Yanks should be cursing themselves 
for enabling a team that was stumbling 


Wright showed incredible resolve in 


showed some spunk by not succumbing 
to Pettitte. After three tame innings, 
Cleveland scored five runs in the fourth 


and two in the fifth on Man Williams's 
towering homer to corral a 7-3 cushion 
and end Pern tie’s night. 

Cleveland’s fourth inning began with 
a Charlie Hayes error and was high- 
lighted by Curtis's error in judgment 
With the score tied, 3-3, two out and 
runners on first and second, Curtis froze 
on Tony Fernandez's apparently catch- 
able line drive to left. It is the worst 
thing an outfielder can do on a ball hit at 
him. It is the worst thing Curtis coukl 
have done because he is in the Lineup for 
dependable defense. 

By the time Curtis backtracked and 
tried to recover, both he and the Yan- 
kees were doomed. The ball landed at 
least 15 feet (4.5 meters) behind him in 
front of the warning track and foe 
double scored Sandy Alomar Jr. from 
second and Jim Thome from first Sud- 
denly, the Indians had a 5-3 lead. Sud- 
denly, the series had changed. For once, 
Yankee manager Joe Torre’s lineup de- 
cisions had backfired. 

Meanwhile, after David Cone tossed 
a few fastballs on Thursday, the Yan- 
kees offered the first subtle signs that 
their ace, who has teQdiqitis in ms right 
shoulder, might not start Game 4. 
Dwight Gooden would be the replace- 
ment starter if foe Yankees decide that 
Cone is unable to pitch. 



1 : • : ' ;• “*''*7**' ; 

iilf 3 ■ '■ 

M 

jUI, ■ •• 


^ Hot.YtHjto.TV WwrJm, 

The Indians’ Sandy Alomar and Jim Thome celebrating after scoring. 


Orioles in Cat Bird’s Seat 
After 2d Rout in Seattle 


By Mark Maske 

Washington Post Service 


Mariners Down, and No Relief in Sight 

y t/ C7 blueprint to be a 


- Washington Post Service 

S EATTLE — When the Mariners’ 
manager. Loo Piniella, waves to- 
ward the Seattle bullpen, foe 
Kingdome throng begins to boo. Mar- 
iners fans may be within their rights to 
drop foe roof on their relievers. But they 
have also demoralized their own team’s 
weakest link so badly that Baltimore 
may soon waltz into the American 

(SdS* won h Same 2 of the di- 
visional playoff series, 9-3, because the 
Mariners’ bullpen has been reduced to 
emotional mash. This is a pen that needs 
to be saved. Whether Sweet Lou sum- 
mons Mike Timlin, Bobby Ayala, Norm 
Charlton or Paul Spoljaric. they are 
greeted like public malefactors. 

If you pierce your eyebrow and dye 
your hair green, people love you here. 
But blow a save and you’re a menace to 
society. 

In less than 24 hours, these guys have 
driven nine-inch nails into foe post- 
season dre ams of foe team with more 
homers than any in history. Twice foe 
Seattle bullpen has arrived in mid- 
game. And twice the Orioles have ex- 


Vantage Po in t/TMom a* Boswell 


ploded immediately for laughably easy 
9-3 victories. 


9-3 victories. 

”If our starters went seven or eight 
innings, we could eliminate foe prob- 


lem,” Piniella said. 

Never doubt that the Seattle crowd 
has been foe Orioles’ greatest friend in 
this series. The Mariners’ bullpen has 
been a depressing saga all season. Now, 
foe relievers are palpable scapegoats. 
Don’t boo Randy Johnson for rubbling 
and pitching scaled in Game 1. Don’t 
nag the Mariners’ Murderers Row for 
going 1 for 12 with men in scoring 
position. 

Just crucify the relievers. That'll help 
'em. Oh, it’s spooky. The crowd boos. 
Ihe reliever throws. And the first Oriole 
to take a swing at the new man drives a 
ball over the wall or off of iL 

The first Oriole that Spoljaric faced 
on Wednesday hit a two-run double. In 
Game 2. the same thing happened. In 
Game 1, Timlin was greeted with a 
homer, then a double. Charlton's first 
pitch Thursday was crushed off the right 
field wall for an RBI double. Ayala 
actually got an out Thursday before 
walking foe No. 9 hitter, then giving up 
a gopher ball to Brady Anderson. 

For two days, every Mariners ballpen 
disaster has fed on itself until the whole 
Seattle team seems profoundly down in 
foe dumps. Thirteen Orioles runs have 


crossed the plate during a mere 8V4 
innings pitched by relievers. What good 
is it to have the most glamorous heart of 
the order in baseball — Ken Griffey Jr., 
Ed gar Martinez, Alex Rodriguez and 
Jay Buhner — if foe bullpen has an ERA 


SEATTLE — The Baltimore Orioles 
all but wrapped up their first-round 
playoff series by folio wing precisely the 
blueprint to beat the dangerous but 
flawed Seattle Mariners. 

They outlasted foe starter, Jamie 
Moyer, on Thursday night and 
clobbered foe Mariners’ pitiable relief- 
pitching corps. They got good pitching 
of their own, beginning with their 
starter, Scott Erickson, and held 
Seattle’s explosive offense in check on 

• .AH A UE 


out of a slow-pitch softball league? 
“They’ve beat foe hell out of 


their way to a 9-3 victory over foe Mar- 
iners before 59309 at the Kingdome. 


hits, striking out six and walking two in 
6V> innings. 

While the Seattle relieves struggled, 
the Orioles' bullpen did its job. Ar- 
mando Benitez struck out Roberto Kelly . 
to get foe Orioles out of a seventh- 
inning jam. Jesse Orosco struck out 
pinch hitter Rich Amaral to strand two 
base runners in foe eighth, and Randy 
Myers finished with three strikeouts in 
the ninth. 

“Everything starts with foe pitch- 
ing,” the Orioles' right fielder Eric Dav- 
is said. “Any time you're in a series like 
this, the best pitching is going to win.” 


“They’ve beat foe hell out of us 
twice,” said Charlton, quivering with 
emotion. “But they haven’t won three. 
It’s not over yet." 

“We’ve got as much talent in our 
bullpen as they do in theirs,” said Spol- 
jaric, exaggerating, but not by as much 
as you might think. “But some strange 
things have happened.” 

At the moment, the Mariners only 
have one advantage. It might be a big 
one. Now they can get away from their 
fans. If you can call them that. “We 
haven ’t pitched well enough to make the 
people in the stands happy. But fans are 
very fickle,” said Charlton, with a meas- 
ured menace worthy of a former Nasty 
Boy. “It’s very frustrating for every- 
body down there in foe bullpen. And for 
Loo. Nobody’s happy about it” . 

If folks were any less happy, they’d 
have to call out foe Washington Na- 
tional Guard. 




From Sumo Wrestlers 
To Wight Witchers? 


*/#' ’* v 

W:-. ■ W^~" 

*rr A M 



American-born Konishiki, the heaviest wrestler in sumo history at 
275 kilos, twisted down by grand champion Takanohana in Tokyo. 


The Associated Press 

TOKYO — For centuries, sumo wres- 
tlers have been fat — really fat — and 
proud of it 

But after watching the weight of top 
wrestlers balloon to as much as 270 kilo- 
grams (600 pounds), officials for Japan’s 
national sport have a word for foe wide: 
Slim down. 

“Some young wrestlers are too heavy 
to keep up with the training,” said Sho 
Sakaigawa, chairman of foe Japan Sumo 
Association. “They’re breathing heavily 
ail the time. Some even have trouble walk- 
ing; they’re too fat” The average weight 
in the top divisions is 150 kilograms. 

Sumo is hoping the coining year will be 
a landmark: Professionals will be featured 
in foe opening ceremony of foe Winter 
Olympics in Nagano in February. 

But sumo’s ability to draw fans has 
been wavering. Sakaigawa said obesity 
was partly to blame. . 


iners before 59309 at the Kingdome. 

Matching the score of their Game 1 
victory Wednesday night, foe Orioles 
took a 2-0 lead in the best-of-five series. 
The Orioles can close out the series and 
advance to foe American League Cham- 
pionship Series for a second year in a 
row Saturday, when they are scheduled 
to send Jimmy Key to foe mound against 
fellow a left-hander. Jeff Fassero. at 
Oriole Park at Camden Yards. 

Moyer and Erickson were locked in a 
pitchers’ duel until Moyer strained his 
left elbow and exited the game with two 
outs and two runners on in the fifth 
inning. The Seattle manager, Lou Pini- 
ella, said Moyer would not pitch again 
in foe series. 

“I don’t like to see that, but it seemed 
like it was the turning point of the game,” 
foe Orioles’ first baseman, Rafael Pal- 
meiro, said of Moyer’s departure. 

Paul Spoljaric replaced- Moyer and 
promptly gave up a two-run double by 
Roberto Alomar that gave foe Orioles a 
3-2 lead. It got ugly from there for a 
Mariners bullpen that posted a 5.33 
eamed-run average and squandered 27 
save opportunities during foe regular 
season. 

Bobby Ayala served up a two-run 
home run to Brady Anderson in the 
seventh inning , and Ayala and Norm 
Charlton permitted four runs in the 
eighth. “We just haven't held the games 
in check the last couple days,” Piniella 
said. “ All the guys we have out there 
are basically capable of doing foe job. It 
hasn’t worked out the Iasi couple days, 
but tilings can change.” 

The Mariners overcame an 0-2 deficit 
to beat foe Yankees in a first-round 



BaK-RmponhAnuanlPmi 

Cal Ripken catching his breath after 
doubting in two runs in the sixth. 


Bulls Tell Jackson 
It’s Time to Depart 


playoff series in 1995. But that time, the 
final three games were at the King- 


final three games were at the King- 
dome. 

“There’s no quit here.” Piniella said. 
"Nobody’s down. We’ll come out Sat- 
urday and play hard. We're not giving 
up, believe me.” 

Tbe Mariners had reason to hope 
when Erickson allowed a pair of first- 
inning runs on RBI groundouts by Ken 
Griffey Jr. and Edgar Martinez. But 
Erickson steadied himself to get the 
victory, allowing three runs on seven 


The Assorintetl Press 

DEERFIELD. Illinois — Phil 
Jackson returned to coach foe 
Chicago Bulls this season out of 
devotion to Michael Jordan and 
Scottie Pippen. 

But it appears that will not hap- 
pen again, even if Jordan and Pip- 
pen beg him to stay, because foe 
Bulls management is telling him to 
leave and Jackson agrees that it's 
time for a change. 

He assured foe Bulls' general 
manager, Jerry Krause, that he 
would walk out at foe end of the 
season. Jackson said before train- 
ing camp opened Friday, and 
Krause “assisted me in that be- 
lief,” be said. 

‘ ‘It’s time to move on,” Jackson 
added. “It would take wild horses 
to drag me back this time. This is 
tite final year.” 


BASEBALL 


BASKETBALL 


Major League Playoffs 


Euro League 


AMI WC AH LEAQUe 

Mflnora 010 OM MO-9 14 0 

SMffla 200 0M 100—3 9 0 

Erickson. A. Benitez (71, Orosco (8). 
RaMyers (9) and Web star: Mayen spaQaric 
(SI An* C7L ChorOan CM, Stocomb (9) and 
Dfl-WHsan. W— Erickson 10. L-Moyor CM. 
HRs — Battfcnore. By-Andenon (l). Baines 

(U (Baffimn leads series 2-4] 

awrimil 000 320 000—7 11 I 

NewYert 300 0M 011— S 7 2 

Jr.WrigM, M. Jackson OT, Assenmacher 
(7). Mesa (8) and SAIomac Pettitte 
Boehrtnger 163. LJayd (7). Nelson (9] and 
Giranfl, Posada (9], W—Jr.Wright 1-0. 
L— Pettffle 0-1. Hfts-Oevetend. 

Ma. Williams (1). Nee York, Jeter (2J. 

(Series tied MI 


Japanese Leagues 


x-Yakalt 

Yokohama 

HtasNma 

Yonriurf 

Hanshte 

Chunktii 


W L T 

80 50 2 

69 59 0 

64 64 0 

61 71 0 

59 72 I 

58 75 1 


Pet ,GB 
.615 — 
539 10 
SOD IS 
.462 20 
450 21 M 
436 23W 


OBOUPA 

Otympiokas Ptrows 69. Limoges 57 
Reef Modifd 66> Efcs PBsen 76 
onrAKDtfta*! orymptako»6paintxMoc- 
cabi Tel AvtvS CSKA Moscow 5; Efes PBsen 
Si Real Madrid a Limoges 3. 

GROUP B 

Porto 79, Croatia Spltt (83 
Benetton Treviso 71, Tint Telecorn 66 
STMDttMK Benetton Treviso 6 paints; 

PAOKSalonikaS; Croatia Split&Eshidiantes 
Madrid S Turk Telecom 1- Parte 3. 

GROUP C 

UBwrspar 67. Pou Orttiez 64 
Barcelona 71, Kinder Bologna 84 
STANDING*! Parttnin Belgrade 5 ports 
Barcelona & Kinder Bologna S Ulkerspor 4 
Hoped Jerusalem 4; Pau Orttiez 4. 

GROUP D 

Alba Berfln 74, Obono Zagreb 73 
Prats SG-Rocfng 66, OBmpta Ljubljana 69 
STAMDNM** Teamsytaem Bologna 6 
parts AEK Athens & Alba Berta 5. Cftrona 
Zagreb * Oflmpi)o Ljnbgana H Parts St Ger- 
PtOfciX 


Edmonton 

Colorado 
Las Angeles 
Anaheim 
Vancouver 
Crtgary 
San Jose 


0 0 1 12 2 
0 1 0 0 2 6 

0 10 0 1 3 

0 10 0 1 4 

PAcmcomnoN 

W L T PIS GF 6A 

1 0 0 2 5 3 


0 0 1 1 

0 11 t 

0 0 0 0 

0 0 0 0 

0)0 0 
0 10 0 


Nice won 4-2 on aggregate 
Roda la Ha pod Beenheva Israel 0 
Rada JC Kerkrode won 14-1 an aggregate 
LegtoWancm 1, Vicenza 1 
Vicenza non 3-1 on aggregate 
Treraso, Norway, 4. NK Zagreb 1 OT 
Treraeo woo 6-5 on aggregate. 


SECOND ROW® DRAW 


THURSDAY'S O AMI 

Los Angeles 2 3 0—5 

Boston 3 3 1—6 

Ffeet Period: B-Heinze 1 (ABson EHett) 
(ppl.2, B- McLaren I (DiMoto) 3, LA.-Smytti 
1 < Boucher, MocUan) 4, t_A.-Murray 1 
(Norstronv SfumpeQ * B-KhrMdi 1 
(Donato] Second Period: LA.-Stumpel 1 
(Johnson. MacLean) 7, B- Bates 1 (Sweeney) 
A B-Taytar 1 (Donato) 9, LA. -Ferraro 1 
(Moger, ZmolekJ 10, LA- RoMtoDe 2 
( Johnson) Third Period— 11, B-DIMaio 1 
(Sweeney) Shah as peat LA- 12-14-5-31. 
B- 7-13-10-30. GoaSes: UL-Fiset. B- 
Dafoe. 


FIRST LEO OCT.a*. RETURN LEG NOV, • 
Trotted, Norway, vs. Chetseo. England 
Germinal Ekerea BeJglunv vs. VIB Sfultgart 
Lokomater Moscow, vs. K u a rtlsp os Twhey 
Shokbtyar Donetsk. Ukraine n. Vicenza 
Real Belle Spain, veCopenhagan 
AEK Athene vs. Storm Gns, Austria 
Nice France vs. Slavia Progee 
Pitawrle Skwenia vs. Roda JC Neh 


Friday, Beuma 
aUARTERFWALS 

Jim Owner ni. United state*. deL Jan 
Krastofc.SkM0ida.6<fra. 

Kenneth Cartsen Denmark, del Art 
O'Brien. United States. 7-S, 5-7. 7-6 (7-4). 

Thomas Johanssoa Q), Swed en dot GF 
ontoca Pool noty, 6-2,64. 

Magms Gustefsson IS). Sweden daLBy-. 
ran Black. Zimbabwe 64,6-3. 


DenwrtorG Greg Graham. CSfeveSchefflec 
199B2d-rauwd draft ptehondeon dffla rwl 2d- 
round pick In either] 999 or 2002. 


volleyball Bma ZBrv Czech Repub- 
lic — womea Europe an Champtonshte to 
Od 5. 


SOCCER 


x-d inched league title 

PACmClIABUK 
W L T 


ICE HOCKEY 


Cup Winners’ Cup 


Se3w 75 53 3 

OitX 66 58 3 

Kintetsu 65 62 4 

Nippon Ham 63 71 1 

Dale) 59 68 I 

Lotte 55 71 2 

CENTUM. LEAGUE 
Yakut! Hiroshima 2 
fomiuri 7, OwnicM6 
Yokohama & Honshrn 1 

Mctnc league 
paWl.SdbuJ 
Kintetsu 1. Orix 7 


Pet .08 
-586 - 
532 7 

.512 9V, 

4X1 IS 
465 15% 
437 19 


NHL Stjuwmgs 


PNadefehk) 
Tampa Bay 
Washington 
New Jersey 
N.Y. Islander? 
N.Y. Rangers 
Florida 


CRICKET 


. pAxmaji a ju va. tomii AmcA 

3-BAY MATCH, 30 DAY 
FRIDAY. IK KARACHI, PAKISTAN 

South A trim: 305-7 and 254-8 
Pakistan Cncfcet Board XI: >32 and 237-4 
The malts ended in draw. 


Boston 

Buffalo 

Montreal 

Ottawa 

Pittsburgh 

Carolina 


■AflUMCOMnDKI 

ATUUmc OtYtSKM 

W L T Pis GF GA 
ghid 1 0 0 2 3 1 

lay 1 0 0 2 4 2 

tan 1 0 0 2 4 1 

*V 0 0 0 0 0 0 

uders 0 0 0 0 0 0 

gets 0 0 0 0 0 0 

0 10 0 1 3 

NORTHEAST DIVBION 

W L T PH GF GA 

1 0 0 2 6 5 

I 0 0 2 3 ( 

D 0 1 1 2 2 

0 0 1 12 2 

h 0 0 113 3 

0 1 0 0 2 4 


CENTRAL UVI90N 

W L T Pb GF GA 

1 0 0 2 3 I 

1 0 0 3 6 2 


Arrant Yerenn Armenia a Copenhagen 2 
FC Copenhagen wan 5-0 On aggregate 
Priinorte Stovente I, AIKStoddtefml 
PrtmarleAfdoxsdna won 2-1 onogurogate 
Lokomotiv Moscow 3, Bobruisk. Bekm 0 
Lokomotiv Moscow won 5-1 on aggregate. 
VfB Stuttgart 2, Veshnannaoytos keloid ) 
Stuttgart wan 5-2 an aggregate. 

National Bucharest a Kocoefepw. Turkey, I 
Kocneftspor won 34) on aggregate. 
Shofchtar. Ukraine, 1. Boovfstn, Portugal I 
StHkhtar Donetsk wan 4-3 an aggregde. 
Red Star. Belgrade 1, Germinal Betgloro 1 
Germinal Eketen won « on aggregate 
Lucerne a Slavta Prague 2 
Sknfa Prague wan 6-2 an aggregate. 
Sturm Gm Z Apael Nicosia 0 
Sturm Graz won 4-0 on aggregate. 

BVSC Budapest a Real Batts 2 
Real Betts won 4-0 on aggregate 
Drnaburg Daugavpils. La*. Z AEK Athens 4 
AEK Athens wan 9-2 on aggregate 
Stovon Brotistava (l Chaises 2 
Chebea won *41 on aggregate. 

KURORucta Scotland. 1, Nice i 


SECC» HOUND DRAW 

U BA COW 

raw LEG OCT. M . RETURN LEG NOV. 4 
A(ax.vs. Udlrwse, Italy 
Bnrga, Portugal, vs. Dbramn THBsi 
Mete vs. Karlsruhe 
Strasbourg, vs. Liverpool 
Inter Milov vs. Otympique Lyormdi 
Rapid Vienna, vs. I860 Munich 
KTK PC Budapest vs. Croatia Zagreb 
Spartak Moscow, or Skew Switzerland vs. 
VaDadofid, Spain 

SctiaEe 04. Ger. vs. Anderiecfct Belgium 
Aarhus, vs. Twente Enschede, NeOwriraute 
Athletic Bflbaa vs. Aston Vita 
Auxerrw Ftraren vs. OR Crete Greece. 
Steaua Bucharest vs. Bastia France, 

Rotor Volgograd. Russia vs. Lazio Rome 
Atiefleo Madrid vs. PACK Satonfco 
VIL BaUiwtv Gar. vs. Club Bregge, Brig. 


FHOAY. M PALERMO, fflOLT 
THRD ROUND 

Maicelo FBppW 15), Uruguay, def. Qnls- 
fan Ruud Norway. 7-6 (7-4), 6-7 CJ.7), 7-S. 

Fnsidsco Ctavet Ob Spobv def. Vincent 
Spodea. U5. 6-1 6-X 
Javier Sanchez, Spate, def. Juflon Alonso, 
Spate. 6-4. 6-4. 

Art Corretja' n>, Spate def. Rkhairi 

Froraher ^ Australia, 61, 6-4. 

OUARTSWALS 
Sraicftez def. FTIppM 63, 1 -6, 6-4. 
ConetiadeL Ctavet 7-6 D-4). 6-2. 

Dominft Hrbaty (6). Slovakia deL Atoert 
Portae (3), Spate. 7-S 6-4. 


HXnaNALHOCVEYUWUE 

DALLAS— Sgned D Orrig Muni to l-year 
contract Asrignod D Brad Lukowtch to 
AUddcadlHL. 

FtflW PA-SIgnad F Serge Payer to 3-year 
contract 

ILY. Bamoeib— A greed to terms with C 
Wayne Gretzky. 

enTStiURGn-AssIgned RW Roman OksL 
utatoOaebecIHL 

tlmpa— S igned F Trey Matiette Assigned 
F Loole DeBrmk to San Antonte tHL 


Sunday, Oct. 5 


south trot METHODIST— Suspended DE 
Kaon RDey tor Saturdays gameforratsesteg 
attrietic departments long rftrkmce telephone 


«««»■ btanbut Turkey Eura- 

sia Marathon; Mlnneapofls — US. Masters 
Marathon. 

emeten; Harare— Zbnbabwe vs. New 
Zealond tt>W 1 -day tnten wfi c na t. 

cvcuiva, Paris-Toere. France— World 
Cop, Parto-Tows Ctoetic 
wn w n c macwvq LbngcMnpi France — 
— ArcdoTriornpha 

•occur. MadarOty— WarM Cup qual- 
ifying, Me*ia> vs. B Srdvador. 

Monday, Oct. 6 


World Invitational toOcfc. 12. 

4UXM», Pans — World Oiomptorwhlps to 
Oct. 12. 

ooecn Beteni — friendJy Womollonol: 
Braza vs. Morocco- 

Friday, Oct. lO 


cs u c u o st, NoirobL Kenya — 3mdkm 
tournament Kenya vs. Bangtodesh. 

woecsH, Kuwait City — World CUP awri* 
ifytas Kuwait vs. China. . 

Town, Pesora. Italy — Senior Tow ot 
Champions, to Oct. 13. 

Saturday, OCT. 1 1 


TCXAS southeea — N amed Peggy Pope 
Stapletoa waarem basMban coodL 


The Week Ahead 


Saturday, Oct. 4 


TCNNttevroawrcFfatsstaftGennany— 
Porsriie Tennis Grand Pitic to Od. 11 Merc 
Vienna, Airtria—CA Tennis Trophy, to Od. 
IZ Singapore-— Hefcieken Open, to OcL 12. 

ww x , Jakarta Indonesia— South East 
Asian Games, to Od. 19. 

cnwKST. Rowotptefl.PaWstan-Pak- 
istorrvs. South Africa first test to Od. 10. 
Tuesday, Oct. 7 


TRANSITIONS 


World Cup 


ASULN ZOfd 
SECOND ROUND. OtOUP A 
China 1, South Arabia 0 
Irani Qatar 0 

STAMDWOS: lira) 8 pomts Kuwait 4; 
Saudl Arabia 4; China Si Qatar 1. 


TENNIS 


nnnmddtii 

fflDAV.M BASEL SWriZEDLAlA 
OUAITTEFFWALS 

Greg Rusedski (4), Britain, pel. Thomas 
E navel (61, Sweden. 7-6 (7-4), 44 6-3. 

Petr Korda (7). Czech Republic, def. Lionel 
Rwx, France. 43,6-4. 

Tim Henman. Britain, del. Magnus Nor- 
man, Sweden, 62,62. 


AMERICAN LEAGUE 

TEXAS-Amauficed OF Warren Newson 
refused ndnor-teajpw aste-w l and has 
been graded free ogency. 

NATIONAL LEAGUE 

cxiCAOO— NaPMd Steve Maknlez assis- 
lais trainer. 

FMR1WIU 

NATIONAL BASKETBALL AHOCWnON 

OUkumt— Signed F Junior Burrough 
and G Carey Beck. 

Chicago— S igned F Keflh BooOi to 3-year 
canhacL 

CLEVELAND— Signed P Sberell Pant P 
Adrian Caktwefl. G MMhB Butter, and G 
Jerome Allen. 

DAUAS-SignedF Michael PMeyta5-yeor 

con had ulu iiian. 

LA LWErt— Signed G DeJorai Wheat 

MIAMI— Signed F Muntrefa Dobbins. 

MtueauKSS-Stamd G MeMn Bookie P 
Jamie Fefcfc and F Jeff NordgootU. 

Portland — sighted P Sean Higgins. C AF 
tan Uster.c Tend BellG Ernest HtdL and P- 
C Curt Rada. 

KATTVE-Acaetred G-F Dale Efe frart 


Nanwunvow, Kosice, skmdfa — world 
haff-marolhon dtamphnsMps. 

B4HOMG, Atirarilc Dfy. New Jeney - 
Leraiax Lewis. Canada, vs. Andrew GaWa. 
Untied States, a for Lewis' WBC heavy- 
weight lltte. 

cnietarr. Harare — Zbnbabwe vi. New 
Zeabeid. second t-day Intemattonm 
aoiA men: Berta — German Mastwir to 
Od. 5f Rite Mountain, Georgia- BoidcCtial- 
fai9e, to Od. & Kasuya, Japan — Japan 
OpetstaOctS Clemmons. North Caretirt- 
Vootape CharrrotonsWj), serfan. to Od. S. 
WMm Kaiztawa Penrgy to onia — Core 
Slates Betoy King dasric, to Od. 5? tddhoro. 
JitoW - KoMMo Ladies, to Od. 5. 

tiUOtor uaoiie BtSbone- Wortd dub 
dtaiepiondhip quarter-flnafc Brisbane Atto- 
trotte n. St Meters England, 
BdOMYUMioM various sties —European 
One Leicester vs. Toutousef Leinster vs. Mi- 
tar Sw erwea vi. Glasgow; Pontypridd vs. 
S«P6h Bortera Bowgaln vs. Monster; 
Hafagutas vs. Const Treviso vs. UaneSr 
Catedcmvs.Pau. 

TPWUN. Hatoge^oBdfcNetheriands- 
cup tiftaL Netheriands vs. 
Rrai» toOd. s. Mm Basel Swttzertond- 
S wte iwdBOffc^to Od. s Patefma Sidiy — 
SWta iifarnaliuitol to Oct. 5; Beijtea China 
— Batata Open. teOC s 


■occm. CNteiiou. Moldova — Wortd 
Cup QoofflVtec Moktovo vs. Poland, 


Wednesday, Oct. S 


bamutsau. Beiogno — garoLeaguer 
Teramystem Bategms-vs. Paris St Germain. 

Lawton ~ Davis Cup draw far 

1998. 


Thursday, Oct 9 


GYcutete San Sabasitaa Spate— WbrU 
Rood Championships, to Od. 1Z 

HASWTteAU. various sites - Eu- 
^eog oo: Lim oges vs. CSKA Ategw; Eta 
Ptisen Istanbul vs. Maccabi Td Avtw Real 
Modrid vs. Otympiakas Porio n Ankanc 
E^dantes Madrid vs. Croatia Spot PAOK 
Mwnlkfl vs. Benetton Twite* Kinder 
Bologna vs. Portion SelgraOe Pag vs. 
Hapod Jerusalem Ufker Istaibul vs. 
BwWtaw; SCT OOmpfa Alba Beribv 
AEK Athens vs. dbona Zagreb. 

FBELS HOOKIV. Adetoida Australia - 
men, lyifl Champions Trophy, to Od. »2. 
...^ f^ ^rta Water. England - 
JtaWMddi Play ChampionWa to Oct. Ifc 
Banfeaux, France— NovotetOpea to Od IS 
WWkmtehutB. Virginia — Michatob Chora- 
ptonship. to Od. I* Nlihlluini- Japan - 
Total Classic, to Od. 11 Women: TBA - 
SrMteung Worid Championship irt VfamenY 
GoM, to Od. 14 Sanbu. Japan — Takara 


AUTO RACora,— IfoBan Rallp to Oetl* 
ciu cvorx . Nairobi. Kenya — J-natoii 
tournament Bangladesh vs. Zimbabwe. 

RUOBY UNION. vmVutt sites — Euro- 
pean Cup: Toutousc vs. Lotesta: Bath ys. 
Potrtyprtdtb Canflrt vs. Bourgeire UandB vs. 
Caiedonta’ Pau vs- Treviso. 

aoooCT. various sties— World Cup quel- 
Birins: Saudi Arabia vs. Qatar; Kflzakdana. 
Savtit Korea; Uzbekistan vs. Japan Greece 
vs. Dcnmaric Stevenki vs. Cradkz tidy «■ 
Engtorat Georgia vs. Poland; Flntand vs. 
Himgane awtizertond vs. AzetWIatu Austria 
vs. Befarus Sweden vs. Estonia; S adtond vs 
Latvia Cyprus vs. LiMembowp,' Rassla vs 

Bulgaria CzediRepubBc vs. SrtoHecMdta 

vs. Yugoslavia; Spain vs. Faeree istontt - 
Netheriands vs, Turiteyi Bdgtom w. vWe* 
Iceland vs. Llcdriansrtn; trdand vs- R«no- 
nko Macedonia vs. Lithuania- Germany w - 
Atootto Portugal vs. Nodhero Irctomb Ar- 
menia vs. Ukraine. Len& France— friend? 
bitomationaiF ranee vs. South Afilca. 

miiabk Sydney - Woman's world 

Opench«npton5htp5.« 19. 

Sunday, Oct. 12 


MiroNAcnta, Surota. Japan— Fd- 
muta On« JopgnMC Grand Prto 
chickct. Ndrobl Kenya — 3-naH" 
toumameia Konya vs. Ztinbabwo. 

MOTORCYetJ nAfliwn . PMtiP tim 
Austiafa—Aasbafan Grand PitiL 
KUQBY WHOM, various SfaS-EW* 
peon Cup; Milan vs. lexatK 

Swansea- Otosgow vs. UW« Scottish Bor 

dw\^BrtveMwatavs.HorteQW“- 
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INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, OCTOBER 4-5, 1997 


PAGE 21 


SPORTS 




Showdown in Denver 


Patriots Arrive for Battle of the Unbeaten 


By Thomas George 

New York Times Service 


Nm> England (44) «. Donvor (5-0) 

On Nov. 17 last year, Denver rolled 
into Foxboro Stadium and crushed the 
Patriots, 34-8, as Terrell Davis rushed 
for three first-half touchdowns and 
154 yards by game's end. It looked 
like New England suffered from se- 
rious matchup problems against Den- 
ver, but in a preseason battiefeis year. 


NFL Mi 


i 






New England won and appeared to 
have closed the gap. Both teams are 
flying high now, both undefeated, and 
the game will boil down to which big- 
play receiver (New England's Terry 
Glenn or Denver’s Rod Smith) can 
stretch the defenses enough to make 
the offenses click. Gl enn is great, but 
go with Smith at home. Prediction: 
Broncos, 20-16. 

Vfeni|Mi Boy (5-0) vs. Gram Boy (3-2) 

Mike Holmgren, the Green Bay 
coach, is 8-2 against Tampa Bay and 
his teams now hold an overall 18r 
game winning sneak at Lam beau 
Field. The Packers are happy to be 
home, fresh off being upset at Detroit 
last week. Can the fiucs pull one off, 
too? Of course they can. In their last 
meeting last season, a 1 3-7 Green Bay 
victory, the Packers did not score in 
the second half and were held to their 
season-low in points. It will require 
that kind of defensive effort to thwart 
the Packers at home. The Bucs are up 
to the task. Buccaneers. 17-16. 

Kami City (4-1) vs. Miami (Z- 

2 ) “We just want to keep righting until 
it’s over. We won’t die." Safety 
Jerome Woods said that after another 
harrowing cliffhanger for Kansas 
City produced another Chiefs victory, 
this one in overtime, over Seattle last 
week.- Now it's the Dol phins , as Kan- 
sas City makes a fourth straight trip to 
Miami in this series. Elvis Grbac has 
outplayed Dan Marino thus far this 
season; few could have expected that 
But Miami has had two weeks to 
prepare and that should mean plenty. 
Dolphins, 24-17. 

Pfttsbu-gh (2-2) vs. IMtimora (3-2) 

Pittsburgh arrives having ripped Ten- 
nessee last week and having watched 
its quarterback, Kordell Stewart, pass 
for a career-high 244 yards. The 
Ravens’ Vinny Tcstaverde and his 
teammates suffered a disappointing 
loss at San Diego, 21-17, a game they 
had every chance to vrin. Look for the 
trend to continue. Steelers , 26-20. 

Cincsinsti (1-3) vm. JacJamviU* (3- 

1 ) Jacksonville is smarting, having 
been embarrassed offensively and 


zone. The 
to right their ship. The Redskins want 
it more to continue a good thing. 
Redskins , 24-23. 

Datraft (3-2) vs. Buffalo (2-2) Buf- 
falo hosts a team that is brimming 
with optimism after it defeated the 
world champion Packers. But is this a 
cycle with Detroit? Lose to New Or- 
leans? Beat Green Bay? Up and 
down? The Bills certainly hope so. 
The Lions do have more -talent, from 
top to bottom, on their roster. Expect 
it to surface. Lions, 26-24. 

Dallas (3-1) vs. Giants (24) Last 
November the Cowboys strolled into 
Giants Stadium and were shocked, 
20-6, in a game where the Giants 
forced five turnovers. The Giants 
would love to duplicate that If Deion 
Sanders continues to return punts for 
the Cowboys, that could give Dallas a 
special lift The Emmitt Smith-Tyr- 
one Wheatley matchup is worn 
watching. Both have plenty to prove. 
Cowboys, 16-10. 

Muawsota (3-2) vs. Arizona (14) 

Arizona came so close at Tampa Bay 
but lost, and now the Cardinals host a 
hot team that has given them trouble 
in the past (the Vikmgs have won four 
of last five in the series). Who .will 
Robert Smith? He sparks the 


stop Robert Scum/ He sparks the 
Vikings* offense with an eye-popping 
6.3 yards a cany. Vtkings. 17-14. 


last week. This week fee Jags tackle a 
team and a quarterback — Jeff Blake 
— that usually gives them fits. Blake 
is 3-1 against the Jaguars and threw 
for rive touchdowns is two meetings 
last year. But look for Jacksonville to 
create ways to keep him in check and 
for its offense to rebound. Jaguars. 
27-13. 

WMAungton (3-1) w. Philadelphia 

(1-3) The whole Eagles crew is ready 
to hurt someone alter losing to Min- 
nesota and stumbling to two consec- 
utive losses after that huge victory 
over Green Bay. Washington is play- 
ing solid football, especially on de- 
fense, where it is creating turnovers 
and keeping opponents out of the end 


(1-3) n. SMttta (2-3) 

“He’s gone from 200 yards to 100 to 
40 to 20. Something is wrong. Yon 
have to play good defense to have a 
good r unning game and we’re not 
making plays on defense." That was 
the Oilers’ coach, Jeff Fisher, talking 
about his running back, Eddie 
George,- and his defense. Both have 
slumped. And going on die road in die 
loud Kingdome is not the place to 
seek improvement Seahawks, 27-9. 

San Diego (24) vs. Oakland (24) 

Stan Humphries finally hit his stride 
at quarterback for the Chargers, but 
the Raiders’ Jeff George has been in 
stride all season. George has com- 
pleted 95 of 166 attempts for a 57.2 
percent completion rate. He is av- 
eraging 8.87 yards a pass attempt, has 
completed a long pass of 67 yards and 
has 13 touchdown passes compared 
with three interceptions. That is a 
105.3 rating, third-best in the NFL 
That, with Napolean Kauffman's run- 
ning, is too much for die Chargers to 
overcome. Raiders. 34-23. 

Jots (3-2) Vs. tmfianapoHs (0-4) The 

Colts started last season 4-0. This 
season they’re 0-4. What a turn- 
around. There have been so many 
problems, and now the latest is keep- 
ing the team from completely folding. 
The last r Joss, a disheartening display 
of wilting under pressure after build- 
ing a big lead at Buffalo, may have 
been the final nail driven into a pitiful 
Colts season. No sympathy from the 
Jets. Jets. 23-17. 

Maw OHmmi (1-*) vs. Chicago (04) 

This is the Woe Bowl. Can things get 
any worse for either team? For die 
Saints, it has been a comedy of errors. 
For the Bears, it has been, simply, 
comedy. Something must give. The 
Beans should run Raymont Hams 
about 50 times and watch what hap- 
pens. He is the player on the field who 
should make the difference in this 
game. Bears, 10-3. 


Bye week: Atlanta, Carolina, 
St. Louis and San Francisco. 


Chelsea Moves Ahead, 
Red Star Stays Behind 


The Associated Pent 

LONDON — The English team 
Chelsea, Real Beds of Spain and Stut- 
tgart of Germany survival to make it to 
(He second round of the Cup Winners > 

the Euro- 
was not as 
, going out to Germinal Ekeren 
of Belgium in its second-leg, first-round 
match 

Chelsea defeated Slovan Bratislava, 
2-0, to go through 4-0 on aggregate. 
With Slovan going out and Red Star 
following sidt, Chelsea is the only team 



Cup Winnirs Cup 


left in the weak Cup Winners Cup com- 
petition that has won a previous Euro- 
pean tide. Chelsea won the Cup in 
1971. 

Ruud Gullit’s Chelsea team weal 
ahead 1-0 in the 28th minute on a freak 
goal credited to the Italian,. Gianluca 
v ifllli- The Slovan goalkeeper, Miroslav 
Konig, came out to clear a loose ball 
after Dan Petrescu and Roberto Di Mat- 
teo tried to control it near the box. But 
Konig kicked the ball directly at ViallL 
The ball rebounded off Vialli’s back- 
side, struck the crossbar on the under- 


side, and went in as 
from the 1300 viriting "Chelsea fans. 

Roberto Di Matteo, teaming wife Vi-, 
alii, scored fee second goal in die 60fe 
minnte, Vifllli spotted Di Matteo coming 
down fee right side and found him with 
a perfect cross, which Di Matteo settled 
and then chipped in from 5 meters. 

In Belgrade, Germinal Ekeren of Bel- 
gium eliminated Red Star wife relative 
ease, drawing l-l to advance 4-3 on 
aggregate. Red Star took the lead in fee 
18m minute on a goal by Ivan Drulic. 
But Tomasz Radzinsky equalized in fee 
67th, tapping home a perfect pass from 
midfielder Gunther Hoftnan. Red Star’s 
50,000 fans, watching in heavy rain, had 
hoped to cheer their team on from a 2-3 
deficit after fee first leg. 

A Slovak referee, Karol Iring, sent off 
two players — Red Star’s Dejan 
Stankovic and Germinal’s Michael Ver- 
straeten — after they tussled seven 
iwintifwi into fee second half. 

In Stuttgart, Jonathan Akpoborie 
scored in the 72d and again four minutes 
later as fee Germans woo, 2-1, to ad- 
vance, 5-2, over Icelandic team Vest- 



Sturm Graz’s Ivica Vastk, right, battling Costats Constantineu of Nicosia* 


mannaeyja. 

In Budapest, Real Beds of Spain de- 
feated Budapest Vasutas, 2-0, as Hum- 


berto Alexis scored eight minutes into 
the match and Alfonso Peres scored in 
fee 49th. 

In Donetsk, Ukraine, Shakhtar Don- 
etsk held Boavista of Portugal to a 1-1 
draw to advance, 4-3. Mikhail Pot- 
skhveria put Shakhtar on fee board in 
fee 78th, but Russel Latapy leveled for 
the visiting Portuguese a minute later. 
Shakhtar surprised Boavista, 3-2, two 
weeks ago in Porto. 


In Bucharest, Nun Colak found the 
net in fee 79th minute to give the Turk-- 
ish team Kocaelispor a 1-0 victory over 

wt. _ _ t 1 rn- 


National Bucharest of Romania, advan- 
cing on a 3-0 aggregate score to the; 
second round. 

In Graz, Austria, Sturm Graz over-; 
whelmed Apoel Nicosia of Cyprus, 3-0, 
to go through, 4-0, on aggregate. Han? 
Reuimayr scored in the 3rd. Ivica Vastfe 
in fee 29th and Mario Haas in fee 42nd.- 


Sports Agents: Hated by Many , Loved by a Few 


By Bill Brubaker 

Washington Past Service 


WASHINGTON — Gus Sunseri, fee 
ageot for fee Redskins defensive tackle 
Sean Gilbert was explaining on a 
Washington radio talk show why his 
client was refiising to report to work. 

Gilbert is worth at least $5 million a 
year, Sunseri said, and the Redskins 
offered a mere $3.6 million. When fee 
interviewer told him that many fans do 
not believe Gilbert is worth $5 million 
— fee Redskins, after all, had one of fee 
worst defenses in pro football last sea- 
son — Sunseri responded: “We care 
about how We're judged in God’s eyes 
— and not fee public’s eyes. Ninety- 
nine percent of fee people only know 1 
percent of the facts." 

The interview, several days before 
fee Redskins’ 1997 season opener,. 
brought a strong response from Wash- 
ington listeners. “The 1 percent I do 
know is fear Sean Gilbert has a very 
arrogant agent," one caller said. Others 
called Sunseri a “jerk" and “total mor- 
on" who “reinforces every negative 
stereotype you ever had of an agent ” 

As professional athletics has grown 
into a ranltibiUion-dollar industry, 
where star players can earn hundreds of 
thousands of dollars a game, agents 
have become, to many fans, fee scourge 
of the sports world — responsible for 
skyrocketing salaries, high ticket prices, 
even the won-loss records of their fa- 
vorite teams. 

“More people are saying: Kill the 
agent," said Brian Cook, a hockey 
agent in Boston who threatened to sue 
fee Washington Capitals this summer. 

“You have to understand our job,” 
said Scott Boras, who represents 70 
major and minor league players, in- 
cluding the Atlanta Braves pitcher Greg 
Maddox, the highest-paid base ball play- 
er in history. “Being a representative of 
players is much like- being a player 
going into an opposing ballpark. I ex- 
pect to be booed.*’ 

The image of fee brash, overbearing 


agon, sniping at team officials, insisting 
his client is terribly underappreciated and 
horribly underpaid, has bom part of fee 
American sports culture since the 1960s 
when athletes, in increasing numbers, 
began hiring representatives to do their 
bidding. And as player salaries have 
soared, leagues have expanded and their 
profession has been glamorized by fee 
Tom Cruise movie “Jeny Maguire,” 
agents have become an increasingly 
dominant and visible force in pro sports. 

In die United States and Canada, 
more than 1,000 agents have been cer- 
tified by the players' associations, or 
unions, of fee four major pro sports 
ruling bodies: the National Basketball 
Association, National Football League, 
Major League Baseball and National 
Hockey League. Agents also are reg- 
ulated by some stales. 

It's a lucrative business, at least for 


controversial figures in sports is Boras, 
whom writers have nicknamed “Father 
of the Bonus Baby" and, less kindly, 
“The Most Hated Man in Baseball." 

Whereas a decade ago $200,000 was 
considered a hefty signing bonus for an 
untested amateur baseball player, today 
it's $10 million — the amount Boras 
squeezed out of fee expansion Tampa 
Bay Devil Rays last year for a high 
school pitcher named Matt White. 

Boras, a lawyer and former minor 
league infielder who has a doctorate 
degree in industrial pharmacy, does 


$11 million. Boras declined to offer the 
Phillies any proof. 

Boras found Drew a $750-a-monfe; 
job wife fee St Paul Saints in Min- 


nesota, an independent minor league 
iso riled a grievance wife' 


‘Ninety-nine percent of 
the people only know 1 
percent of the facts.’ 


agents wife star diems. Agents rep- 
1A pJa 


resenting NFL and NBA players can 
collect a maximum of 4 percent of any 
money they negotiate above fee min- 
imum salaries. No maximum fees are 
specified by fee baseball and hockey 
unions. Significantly, more money can 
be earned for negotiating product-en- 
dorsement contracts, which are not reg- 
ulated by ‘fee unions. Fees of 20 to o 
percent are customary. 

Though many agents fit the cocky, 
Mgh-fiving image portrayed in “Jerry 
Maguire," some are serious, 'soft- 


annoying - 
“One i 


spoken and_ business-like in their aj>- 


proach. In fact, many are lawyers, 
prior experience is necessary to be cer- 
tified as an agent “If an applicant has 
been convicted of a felony, we certainly 
won’t certify him," a baseball union 
executive said. “But other than feat, the 
only qualification an agent needs is to 
have a client’’ 

Some recent negotiations illustrate 
how aggressively agents can operate, 
withholding athletes* services, threat- 
ening legal action and using the media 
to explain their often -unpopular pos- 
itions. 

Surely one of fee most powerful and 


little to dispel fee notion he is one of the 
most combative — and, to adversaries, 
-sports agents. 

young team negotiator once 
took his shoe off and banged it on tire 
table — like the Nikita Khrushchev 
thing — during a negotiation wife me,” 
Boras said in a phone interview. “An- 
other guy pushed a chair through a walk 
Both those persons, maybe they were 
trying to see if I would get mad. I’m not 
fee kind of person who gets mad." 

Boras’s latest shoe-banger involves 
fee Philadelphia Phillies and a 21-year- 
old former Florida State University, out- 
fielder, JJD. Drew, who was widely con- 
sidered the best prospect in tins sum- 
mer’s amateur draft. As Boras tells it, 
several baseball organizations assured 
him they would give Drew a three-year, 
$11 million major league contract if 
they drafted him. Boras said he warned 
clubs not to draft Drew if they were 
unwilling to similar offers. 

Bnt the Phillies selected Drew wife 
the second pick of the draft, and offered 
a $2 million signing bomis. The Phillies 
scouting director, Mike Arbuckle, said 
he asked Boras “to show me some 
proof" that other dubs had promised 


club. He also 
Major League Baseball’s ruling exec-* 
utive council, seeking to have his client; 
declared a free agent. 

While Drew’s future is being sorted; 
out. Boras said his client is protected by. 
a $10 million Lloyd's of London di*-; 
ability insurance policy. But Drew has 
no protection from the wrath of Phil-' 
adelphia fans, who have been noting; 
feeirdispleasure on radio talk shows and 
on the Rullies’ World Wide Web site. ; 

Another agent who has just had a 
slugging match is Brian Cook — wife 
die Washington Capitals. “To me, it 
was fee most grinding negotiation I had 
ever been through, " he said. i 

It began March 1, when the Capitals 
acquired a client of Code’s — star cen-! 
ter Adam Oates — in a trade with the 
Boston Bruins. 

Cook said fee president and general 
manager of the Capitals promised to’ 
give Oates a three-year, $9 million con- 
tract at the end of the 1996-97 season and 
a $9 million disability policy to protect 
him for fee remainder of fee season. ; 

But they later balked on the contract 
price, and in a letter said die Capitals had 
; ‘not agreed to any specific cenns.” 

Cook said he smelled trouble when 
the Capitals hired George McPhee — a 
Vancouver .Canucks executive, former 
NHL player and Rutgers University law 
school graduate — as general manager.. 
“Geotge McPhee has a reputation for 
just hating agents," Cook said. 

On June 11, McPhee offered Oates at 
two-year, $5 million contract, according 
to Cook. But Cook dug his heels in, and 
eventually he won: Oates signed a three-; 
year Capitals contract that will pay him 
just under $9 million, with an oppor- 1 
tunity to earn $3 million more during an 
option year. ‘ T think I let fee Caps know 
that Adam Oates just wasn’t going to 
roll over,” Cook said. 


DENNIS THE MENACE PEANUTS 


CALVIN AND HOBBES 



SOMETIMES I LIE AWAKE AT 
N16HT.ANPI ASK QUESTIONS- 

15 THERE ANY ONE THINS 

A PERSON CAN 00 TO MAKE • 
UIK 1 IFF SUCCESSFUL? 1 



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*8UTlPWE5W3*FR0MllUSr/MD R0URNTODU5T, 
mMsoMffidNSatWROaweoRGaHe 
UNDER WEED." 



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Education 

Appears every Monday 
in The Latwinarket. 
Tu^TrtweermlartSai^Wewhof 
in our London office; 

Td.: + 44 1 714200326 
‘ Fme + 44 171 420 0338 

or your nearest IHT office 
op representative. 






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PAGE 22 


INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, OCTOBER 4-5, 1997 


DAVE BARRY 


The 9-Iron and Emus 

Another question often asked by be- 
ginning golfers is: 

Q. What happens if a snake eats my 
balls? 

A. Don’t wony! The snake will be 
fine, provided that it gets proper med- 
ical care. 1 base this statement on an 



boomers discover the 


ticipaimg in a sport where the most 
physically demanding activity is order- 
ing putters by mail. icai care, i oase mis statement on an 

ft has reached the point where, if you article from the July 5, 1996, Harrisburg 
don’t play golf, your career can suffer. I (Pennsylvania) Patriot-News, written 
know mine has. In my newspaper office, 
the two senior editors — let’s call them 
“Tom Shroder" and “Bill Rose” — 
regularly go off together during busi- 
ness hours to play golf. I’m sure that 
while they ’reout on the “links" whack- 
ing their "bogeys,” they discuss im- 
portant business matters and formulate 
newspaper policies in conversations 
like this: 


TOM: Bill, before I 
“shank” this “birdie,” 
I’d like to know your " 
* ‘gut feeling” on the use 
>fqu 


attempt to 


of quotation marks in the 
newspaper. 

BILL: Tom, I feel 
they are overused. 

TOM: I agree. Let's 

formulate a policy on 

that. 

BILL: And then let’s try on evening 
gowns. 

TOM: Yes! We’ll accessorize with 
brooches! 

I'm not saying “Tom" and “Bill" 
discuss exactly these topics. I’m merely 
saying that, because I don’t play golf, 1 
don't know WHAT they discuss, and so 
I'm “out of the loop.” Perhaps you’re 
“in the same boaL’HPerhaps you'd like 
to learn about golf, so that when your 
colleagues talk about it, you can join in 
and be "one of the persons.” That's 
why today’s topic is Basic Questions 
About Golf, starting with die question 
that beginners ask most often: 

Q.Has anybody ever used a 9-iron to 
kill emus? 

A. Alert reader Maijorie Dishron sent 
me a fascinating column written last 
February by Ron Henry Strait, outdoor 
writer for The San Antonio Express- 
News; the column concerns a man 
named Wes Linthicum, who heads an 
informal group called the Texas Chris- 
tian Hunters Association, which each 
year feeds the homeless using donated 
meat An area emu fanner offered to give 
the group a bunch of emus, which are 
very large, ostrich-like birds. The prob- 
lem was that the birds were alive, and, as 
die old folk saying goes, “You can’t feed 
large ostrich-like birds to the homeless if 
they (the birds) are walking around.” 
The members of the Texas Christian 
Hunters Association didn’t have guns 
wife them, and nobody wanted to 
strangle the emus manually. According 
to the column, the problem was solved 
when “someone recalled that emus have 
a tendency to closely examine an object 
that is dropped on the ground. That’s 
when Linthicum got out his 9-iron." 


Me, I love the idea 
of paying some- 
body to play golf 
with clients. 


by Danielle Hollister and alertly sent in 
by Dave Barrows, headlined SUR- 
GERY GETS SNAKE UP TO PAR. 
The story states that Sandy and Jeff 
Paul, who raise chickens, sometimes 
“put golf bails in their hens’ nests to 
encourage the hens to stay put and lay 
eggs." One day they noticed a five-foot 
rat snake near tbeir home wife three 
distinct lumps in its middle, and they 
realized that the snake had swallowed 

their golf balls. So they 

grabbed their 9-iron 
and. . . 

No, seriously, ac- 
cording to fee Patriot- 
News article, fee Pauls 
contacted a veterinari- 
an, who successfully 
removed fee golf balls. 

The snake, which the 
Pauls named “Spalding," came 
through fee operation OJL and has been 
accepted at law school. 

No, I'm kidding about that last part 
But I’m not kidding about our final 
common golf question, which is: 

Q. If I do not wish to stand around on 
a golf course listening to a bunch of 
business clients drone on about tbeir 
“mulligans,'' can I hire somebody to 
play golf with them for me? 

A. Yes! Alert dentist Steve Carstensen 
sent me a flyer for a new Seattle outfit 
called Golf In Action ("We’ll Play Fra: 
You When You Can’t"). The idea is, you 
. pay a golfer to take your clients out and 
" play wife them, thereby (to quote fee flyer) 
“giving you fee freedom to continue your 
important daily business needs." I called 
Golf In Action and spoke wife the founder. 
Sheik Locke, who told me that her idea has 
gotten a good public response, although a 
lot of the calls are from people who want to 
join her staff and get paid to play golf. 

Me, I love the idea of paying some- 
body to play gplf with your clients, and 
and I’m thinking : Why not take it fur- 
fear? Why not pay somebody to have 
meetings wife your clients, and take 
your clients to dinner, and smoke cigars 
and drink brandy with your clients, and 
then throw up on your clients' shoes 
because you hate brandy and cigars? 
This company could be called: Busi- 
nesspersons In Action. 

So those are your golf basics. Good 
luck out on the ‘ ’links,” and be sure to 
say “hi” to my editors, “Tom” and 
“Bill,” who will be easy to spot be- 
cause they get stuck in the sand traps 
wife those high heels. 

(C) 1997 The Miami Herald 

Distributed by Tribune Media Services, bur. 


The Rise and Fall of Rosa Bonheur 


International Herald Tribune 

P ARIS — Rosa Bonheur (1822- 
1899) was (he most famous woman 
painter of her time, perhaps of all time. 
The Empress Eugenie came to Bon- 
heur’s chateau. By in Thomery, near 
Fontainebleau, to pin the Legion 
d’Honneur on her sturdy breast, an 
event commemraated in a tune by Bizet^ 
and in 1 894 the president of the republic 
raised her to the rank of Officier, me first 
woman to be so honored. 

Queen Victoria received her when 
her epic painting, “The Horse Fair,” 

MARYBLUME 

was shown in England, and R us kin 
feoughr it worth bJs while to suggest 
feat she try, like him, to paint wa- 
re rcolors and use purple. But in her 
own country, although she had won 
praise from such painters as Delacroix, 
her reputation steadily declined in her 
lifetime. Bordeaux, her native city, 
turned down her offer to sell “The 
Horse Fair” at a special low price and 
has no major Bonheurs. The Museum 
of Fontainebleau kept most of its Bon- 
heurs unhung. On the other hand, 
“The Horse Fair,” given to fee Met- 
ropolitan by Cornelius Vanderbilt in 
1887, is, along wife the Egyptian 
mummies, part of every young New 
Yorker’s first visit to the museum. 

The drop in Bonbeur’s fortunes in 
France is ascribed not only to changing 
tastes but to fee fact feat after fee 1855 
salon she declined to exhibit for 12 
years and even then only showed at two 
world’s fairs, in 1867 and in 1889, 
where she exhibited a 41-year-old 
work, “Le labourage nivemais" 
(“Ploughing in the Nivemais”). In- 
stead, she sold her paintings and copy- 
righted prints of her paintings mostly 
on fee English and American markets. 

The Anglo-Saxons, it was decided, 
had co-opted her and in 1867 she was 
criticized for her “English' ’ style. One 
critic referred to her as “Miss" rather 
than “Mademoiselle” and noted that 
“since her adoption by the English 
who have made her fortune, we have 

seen none of her p ainting s in the French 
exhibitions and not even in sales.” 

Although she didn't budge from By. 
where she later installed electricity so as 
to be able to work at night, she was 
considered a deserter, no longer French. 
The fashionable Goncourt brothers, 
whom she had refused to receive at By, 
referred to her as “feat Jewess," an 
inaccurate but useful condemnation at a 
time of rising anti-Semitism. 

Finally, after what one French 
scholar calls more than a century of 
purgatory, Rosa Bonheur has been res- 
cued from oblivion wife her first ret- 
rospective, held this summer in Bor- 
deaux and to be seen now in a much 
abridged version in the tiny and de- 
lightful Mnsee de i'Ecole de Barbizon- 


Auberge Ganne, 57 kilometers (35 
miles) from Paris. The show ends on 
Nov. (7, when it goes to fee Dahesh 
museum in New York. 

There was no room in fee former 
painter’s inn for the mammoth "“Horse 
Fair” and “Le labourage nivemais." 
from fee Musee d’Orsay, only 
squeezed in by having its heavy frame 
removed, but fee snow, sympathet- 
ically hung among the inn's vestiges 
by fee curator Marie-Therese Caille, 
gives an intimate view of Booheur’s 
skill at depicting animals and her brand 
of naturalism which, now that she is 
being rehabilitated, is compared more 
to Courbet, three years her senior, than 
to such animaliers as the sculptor 
Barye or the soppy Landseer. 

the work is more careful than in- 
spired, affectionate but not sentiment- 
al, a doughty celebration of working 


women. She copied mostly Dutch 
masters such as Paolos Potter and in 
fee family flat kept rabbits, birds and 
sheep (which had to be taken down 
five flights of stairs to graze in fee 
nearby Plaine Monceau). 

_ In 1840, aged 19. she showed for the 
first time at the salon. Her drawing of 
goats and sheep and her “Rabbits Nib- 
bling Carrots'*' (on view in Barbizon) 
attracted no attention, but by 1845 she 
was selling regularly and won a third- 
class medal. Ax the 1847 salon a critic 
said her sheep made one want to be a 
shepherd and she was given fee ul- 
timate praise, “She -paints like a 
man.” 

She also began dressing like a man, 
having received a permit to do so from 
the mis police. This, she explained, 
was necessitated by hex going to paint 
in the rough all-male atmosphere of 



PUladdplBi Ua 

Hunt’s over: Rosa Bonheur’s “Barbaro apres 1a chasse.” 


animals whether they be fee tremen- 
dous oxen of fee Nivemais or a dog, 
Barbaro, exhausted from a day’s hunt- 
ing. As acritic in her heyday, when fee 
French still loved her, wrote, fee en- 
semble of her art could be called a 
“Hymn to Work." 

Bom in Bordeaux, where her paint- 

moved ufparis with her family when 
she was 7. Her father was part of the 
utopian socialist Saint-Simon move- 
ment and a friend of fee naturalist and 
founder of fee Jardin de Plantes zoo, 
Etienne Geoffrey Saint-Hilaire, both 
early influences, as was fee early death 
of Bonheur’s exhausted mother bur- 
ied, because of fee family's poverty, in 
a common grave. 

Rosa studied painting with her fa- 
ther and from the age of 14 went to 
copy paintings at the Louvre since fee 
academies discriminated against 


the Paris slaughterhouses as Gericaolt 
had done. Also, the Saint-Simonians 
had preached sexual equality and de- 
signed a soft of pants -dress for wom- 
en. But if male clothes were both prac- 
tical and philosophically acceptable, 
they were also to nertaste. “As far as 
males go, I only like fee bulls I paint,” 
she remarked. 

As Dore Ashton pointed out in her 
1981 biography, Rosa was perhaps 
unconventional but not a rebel: “She 
vacillated between middle-class mod- 
esty and bohemian audacity aU her 
life.” She was proud of her tiny feet 
and wore a dress for public appear- 
ances and portraits; privately she 
smoked cigarettes and fee occasional 
stogie and bad as partners N athali e 
Micas, whom she had met at 14 and 
lived wife until Nathalie’s death, and 
fee American painter Anna Klumpke. 

In 1 848, she won a gold medal from 


a salon jury feat included Horace 
Vemet, Delacroix, Meissonier. Ingres, 
and Corot, and soon after a 3,000 fran c 
commission from the state for a paint- 

The 



Cannae, said, “It is horribly like the 
realthing.” 

The art public was changing, as 
Ashton points out, wife the newly rich, 
like the newly rich today, preferring 
“discoveries” at artists 1 studios to con- 
ventional exhibitions. Rosa began to 
use dealers to sell her work and became 
known as a- colorful character for her 
habit of riding astride, and retiring to 
smoke wife the men after dinner. 

From 1851 she made regular visits 
to the borse market near the Salpetriere 
hospital apd began studies for “The 
Horse Fair,” wife fee Parthenon frieze 
in mind and fee unacknowledged in- 
fluence of Gericaolt in bra: uncon- 
scious. The horses are Percherons 
(Bonheur didn't care for delicate thor- 
oughbreds), fee canvas a whopping 
244 by 506 centimeters, and the paint- 
ing his a verve rare in her paintings — 
stolid compared to the thrill of Ger- 
icault, but still full of movement and 
life even if the humans were, as usual, 
given rather summary treatment 

The painting was fee public's fa- 
vorite at the 1853 salon and Bonheur 's 
dealer. Ernest Gambart quickly set 
about marketing it showing it abroad 
for an entrance fee and commissioning 
productions which sold famously. In 
1859 an American newspaper offered 
an engraving of ‘ ‘The Horse Fair” as a 
premium for new subscribers. Bon- 
heur, prospering and no slouch at han- 
dling her own image, no longer needed 
fee Salon or Parisian praise. 

In 1860 she withdrew to the Chateau 
of By, about 10 kilometers from Bar- 
bizon, receiving in her vast studio, - 
which is now open to fee public 
Wednesday and Saturday afternoons: a 
pious assemblage of high- Victorian 
kitsch, including a puppet wearing 
Rosa’s military-style black jacket, with 
matching waistcoat and skirt, to which 
her Legion d’Honneur cross is fixed. 
Also on display are fee bu ckskins giv- 
en by Buffalo Bill whom she met in 
1889, greatly admired, and whose In- 
dians, horses and portrait she painted. 

In America, she was portrayed at 
her easel between Napoleon on his 
borse and Buffalo Bill . on his. In 
France she was now found plodding, 
“LeBougexeau des Vaches, one'erit- 
ic said. At a 1900 sale of her work, 
Anna Klumpke, her sole heir, had to 
buy back paintings to maintain prices. 
And in 1<U1 in Fontainebleau, a huge 
public statue of a bull, based on one of 
her own works, donated by her dealer 
in 1901 and ridiculed from the start, 
was melted down by the Germans, to 
no one’s apparent regret 


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PEOPLE 


T HE designers Giorgio 
Armani and Donatella 
Girombelli are canceling 
galas next week and donating 
the money to victims of earth- 
quakes in Italy. Armani will 
donate SI 15,000 instead of 
bolding a dinner at his man- 
sion for fashion week in Mi- 
lan. Jenny, the label for 
Donatella Girombelli, can- 
celed a concert and an- 
nounced a donation of 
$57,500. Other designers 
were expected to announce 
donations for the thousands 
of people who lost their 
homes in earthquakes last 
week in fee Umbria and 
Marche regions. 

□ 

The Dalai Lama will get 
to see Jean-Jacques An- 
naud's new film, “Seven 
Years in Tibet,” from his res- 
idence in northern India, 
since he lives in a town wife 
no movie theaters. The 
French director told Daily 
Variety feat a screen would be installed 
in the Dalai Lama's home in fee town of 
. Dharamsala so he can watch fee picture, 
starring Brad Pitt, which will open 
Monday in Los Angeles. 

□ 

Robert James Waller, who sprang to 
fame on fee strength of his best-selling 
love story, “The Bridges of Madison 
County ,’ * was recently divorced from 
his wife. A court clerk in Alpine, Texas, 
confirmed that Georgia Waller filed for 
divorce and the decree was granted Aug. 
15. Their daughter, Rachel Waller, said 
fee divorce became final just before fee 
couple's 36th anniversary. Waller, 58, 
now lives on ooe of his Texas ranches 
with Linda Bow, 34, who worked on the 
ranches as a landscaper, Rachel Waller 
said, and her mother is living on one of 
two Texas ranches she received in fee 
divorce. She said fee decree prohibits 
her parents from talking to reporters, 
about fee divorce. 

□ 

David Duchovny is tired of having a 
long-distance relationship wife his new 
wire.' People magazine reports feat the 
star of “The X-Files" has asked pro- 
ducers to move the show from Van- 
couver, British Columbia, where it has 
been filmed since 1993, to Los Angeles. 
Tea Leoni, his wife since May, tapes her 
sitcom, “The Naked Truth,” tn Los 
Angeles. Chris Carter, co-executive 
lucer of “The X-Files,” said there 
been preliminary discussions about 
moving the show out of fee Northwest 

□ 

Ddpb Lundgren, fee “Universal 
Soldier” action star, is once again tak- 
ing a good-guy role, in John Woo's 
next film. “Blackjack.” “I was cast for 



Afsice Pmer-ncne 

HAT TRICK — Marcel Marceau in Munich per- 
forming his tale of a bowler hat and its owner. 


enjoy playing bad guys more. I wanted 
to ever since I was a child.” 

□ 

The members of the reggae-j 
band Sugar Ray have yet to profit i 
their overnight success. Their hit “Fly" 
rose to No. 1 on Billboard's modem 
rock charts last month, but lead singer 
Mark McGrath still can 't pay the bills. 


“You see yourself on MTV, 
and your record goes gold, 
and you’re like, ‘Wow!. 
We're going to see some 
money.’ And then you see 
that you owe fee bank of At- 
lantic Records lots at 
dough,” he said in Spin 1 
magazine. “I called my dad 
to borrow some money so that 
I could pay my pager bill. My; 
$62 pager bill!* [/ 

□ y 

Pippi Longs tocking has 1 
changed her hosiery and. 
changed her ways, to the dis- 
may of Swedish 'critics re-! 
viewing fee new animated 
movie of the classic trouble- 
child. “Pippi Longstocking," 
based on Astrid Lindgren's; 
books, is a Swedish-German - 
Canadian production aimed at 
spreading the popularity of 
the character who has de- 
lighted generations of kids. 
“Children are fee ones who 
least of all need this new j.. 
bubblegnnvcoltued cartoon^/ 
Pippi wife its relentlessly smiling and 
toothless bite,” grumbled Eva af 
Geyerstam in the newspaper Dagens- 
Nyheter. Her complaints were echoed 
by Astrid Soderbergh Widding in 
Svenslca Dagbladet, who also noted wife 
displeasure feat Pippi is now wearing 
modem hose. “Gone are fee old, hope- 
lessly antiquated garters with slipping- 
down stockings,” she lamented. 




■'4 
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4 



rft tit Tii r ■ ’ • • 


^rpaeseo^tofefekt^me asagood CHAIRWOMAN— -A sculpture ?* e25th edJrion^Ute 

guy, ’ says Lundgren. “Very honestly, I FIAC art fair fan Pans, which has it^riy«0 galleries showing this year