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niacL The World’s Daily Newspaper 

*11 - 

W H»s \\ | ti , 



London, Tuesday, October 14, 1997 

No. 35,651 

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Banner Day for Europe Inc's Merger Madness 

By Tom Buexicle 

International Herald 7 tibiae 

— Whether it is banks and insurance 
conjpawes teaming up to benefit from European 
monetary union nr ntw 

mooean; urnon or other companies bnilding bSlS 
gke on global compeniors, Europe Inc. is on a record 

P^A ^ ^ ^ s cor R? raIe giants. 

pounced p Ians or offers on 
mergCTS worth a combined total of more than S40 

billion, white LVMH of France agreed to allow 
Guinness and Grand Metropolitan to carry ait their 

proposed £23 billion ($37.3 billion) merger in return 
for a £500 million payoff! (Page 13) 

The unprecedented volume of corporate dealing 
on a single day owed partly to coincidence, but the 
factors driving the activity are likely to sustain the 
record-setting boom in European mergers in die 
months ahead, investment bankers and corporate 
executives said. Mergers were running at an annual 
rate of $280 billion in die first half of this year, up 
from last year’s record $265 billion, and the latest 
spree should ensure fopt 1997 sets anothw record. 

In creas ing global competition has combined with 
regulatory ana technological developments to put a 
tremendous premium on sheer corporate scale in a 

wide range of industries, bankers and executives 
said. Provided they maintain a sharp industrial focus, 
big companies have the wherewithal to penetrate 
new markets and invest in new technology while 
enjoying economies of scale. 

‘ “In electronic publishing, scale counts for more 
than in the physical world,” said Nigel Stapleton, 
chief executive of Reed Elsevier PLC, explaining 
why the Anglo-Dutch publisher had agreed to merge 
with its longtime Dutch rival, Wolters Kluwer NV. 
“It’s die big content providers with branded products 
that can drive on the superhighway. ' ' 

See MERGERS, Page 10 

Blair Shakes Hand 
Of Sinn Fein Chief 

Protestants Jostle U.K. Leader, 
Who Meets Parties in Belfast 

I -'. TV 


Neo - Communists 
la Italy Misread 
Rational Mood 


PubUc’s Commitment to EU 
Forces Party to Retreat and 
Seek Compromise WithProdi 


By Celestine Bohlen 

New York Timei Service 

"S’? * 



Li '■ ' 

. kOME — It was only few days ago that Italy’s 
small Refounded Communist Party — one of die last 
fortresses of unreconstructed Marxism in Europe — 
tonight about the collapse of Prime Minister Romano 
Prodi’s center-left government, arguing that its tight- 
fisted pro-Europe policies were a betrayal of the 
working classes and a sop to globalized capitalism. 

On Monday, the same hard-line Communists were 

beating a sheepish retreat, reopening talks that by 
restore Mr. Prodi to power and 

midweek will 

leave his 1998 budget intact. The only concession 
expected is a pledge to follow die example of France’s 
-Socialist government and explore legislation reducing 
dm legal working week to 35 boors from 39 hours. 

; What then was this crisis all about? It is not a 
question likely to unduly perplex Italians who after 55 

Breaking the Sound Barrier, M aking History 

\rii, "A* >Wi J si” ■ > • ■: > 

1 'j..r 


LIVING LEGEND — Chuck Yeager, shown here as a test pilot in 1948, plans to celebrate the 
50th anniversary of his historic flight that broke the sound barrier by doing it again. Page 3. 


BELFAST — Tony Blair shook 
hands with the Sinn Fein president, 
Gerry Adams, on Monday in the first 
meeting for more than 70 years between 
a British prime minister and an Irish 
republican leader. 

The meeting with die head of Sinn 
Fein, the Irish Republican Army ’ s polit- 
ical wing, drew fierce criticism from 
Northern Irish Protestant leaders and 

spilled over into angry jostling when 

Blair walked through the streets of 

Mr. Blair also met leaders of seven 
other parties involved in peace talks on 
the future of Northern Ireland. He 
emerged from the province’s former 
Parliament building at Stormont in east 
Belfast later to defend his decision to 
meet Mr. Adams. 

“We can continue with the hatred 
and the despair and die killing, treating 
people as if they were not pans of hu- 
manity or we can try and settle our 
differences by negotiation, by discus- 
sion, by debate," Mr. Blair said. 

“So, that’s what’s important, wheth- 
er it’s with Gerry Adams or with the 
loyalist people I met or with anyone 
else,” he said. The “loyalists” are pro- 
British Protestants. 

Mr. Blair said he “treated Gerry 
Adams and the members of Sinn Fein in 
die same way that I treat any human 

“What is important in the situation 
here in Northern Ireland is that we do 
treat each other as human beings," he 

The last British prime minister to 
shake hands -with an Irish republican 
leader was David Lloyd George when 
he met with Eamon de Valera and Mi- 
chael Collins for negotiations with Sinn 
Fein in 1921 that led to the partition of 

Mr. Blair, in Northern Ireland for a 
one-day visit, shook Mr. Adams’s hand 
during a series of brief individual meet- 
ings with leaders of the parties taking 
pan in the talks. 

Sinn. Fein was granted entry to the 
talks for the first time last Tuesday 
because the IRA had called a cease- 

A crowd of about 100 angry Prot- 
estants yelling “Traitor!" booed and 
jostled Mr. Blair as he tried to tour the 


Bodyguards hurried Mr. Blair inside 
a bank, but the crowd gathered outside 
and as the prime minister emerged, fol- 
lowed still shouting. 

Some donned rubber gloves and 
waved their hands at Mr. Blair, taunting 
him for shaking hands with Mr. 

“You are contaminated, I’ll not 
shake hands with you!" a woman 
screamed. Others shouted: “Sinn Fein 
lover, your hands are covered in 

British officials said Mr. Blair had 
told Sinn Fein leaders that they and 
other parties to the talks had a once- in -a- 
lifetime chance to shape history. 

See BLAIR, Page 10 


its in five decades are used to die mini-dramas 

time, many 

at the prospect of losing a governing, 
team — at&ditiDQthurai^ftanljbe^ 
former Communists — which, in foe view of. many 
analysts here and abroad, was doing a good job. 

For the leaders of the Reforaded Communist Party, 
bringing down the government was a gamble that 
ended up as a kamikaze mission. 

Instead of being hailed as heroes in a struggle to 
■ protect Italy’s generous pension and bealfo-care sys- 
t eW , foe party and its leaders were roundly criticized 
oyer foe weekend for being obstructionist, out-dated 
tod sdf-indnlgent. On Sunday, its leader, Fausto 
itrtinooi, an artful practitioner of old-time leftist slo- 
gmaering, was booea when he joined amardi for world 

F ice inAssisi, foe earthquake- stricken pilgrimage site 
it lies within Italy’s so-called rod triangle. 

The same verdict was delivered in an avalanche of 
political commentary in Italian newspapers. ‘‘The 
Wounding Party made the government tell, but in so 
' doing, it prefigured its own virtual political demise,” 
wrote Eamando BerscUi in La Stamps, the Turin 

U.S. Gloomy on Korea Talks 

New Inflexibility in Both North and South Dims Hopes 

By R. Jeffrey Smith 


WASHINGTON — The United Stales has 
given up virtually all hope of making p r og re ss 
soon in four-nation peace talks aimed at lower- 
ing military tensions on the Korean Peninsula, 
senior American officials say. 

The diminished expectations partly reflect 
what the officials described as a series of un- 

since 1963 by the same political grouping. The 
regime in North Korean has been highly critical 
of President Kim Young Sam of South Korea, 
who in turn has repeatedly warned of possible 
military conflict and discouraged trade with or 
travel to foe North. 

U.S. officials have argued in private that an 
opposition victory in South Korea would create 

a new opportunity for direct dialogue and ex- 

and South. But 

acceptable and surprisingly inflexible North 
Korean conditions for candu 

newspaper, on Sunda 
-Yet even as its ’— 1 

-*«**«, „ ’ strategy backfired, foe party 

toR represents a constituency that cannot be ignored. 

noteven by abroised Mr. Prodi. a centrist who heads tire 
festkft-teramg, government elected in Italy’s postwar 
JSMOcy. FortheDemocratic Party of the Left, the larger. 

<WHnr.rvi mv * *** v — . r — X ; 

toon moderate' wing of Italy ’s once mighty Communist 

Papy that is now the bockbOTeofMr. Prodi’s Olive Tree 

r conducting the talks. But 
foe administration has also grown more pes- 
simistic, they said, because of South Korean 
opposition to malting concessions to the 

One top U.S. official said the slumping pop- 
ularity of the governing party in South Korea 
has left it preoccupied with campaigning for a 
Dec. 18 presidential election, and paralyzed on 
foreign policy matters. 

“The talks have gone worse than we ex- 
pected,’’ die official said, partly as a result of 
Seoul’s reluctance to consider new steps that 
might lead to a breakthrough. “I remain quite 
pe ssimisti c about foe next 12 months on the 
peninsula," foe official added. 

See ITALY, Page 10 

nation with North Korea, but also made some 
American officials eager to see a change of 
government in the South, which has been ruled 

panded ties between the North i 
they say foal even if the opposition leader Kim 
Dae Jung is ejected and inaugurated in Feb- 
ruary, as surveys predict, three to six months 
may pass before he puts forward any new major 
policies for dealing with the North. 

“We’re in for a siesta,’ ’ another senior U.S. 
official said. “Nothing will happen for a 
while." A temporary easing of North Korea’s 
food shortage makes this a less worrisome 
prospect, the official added, because the leaders 
of the isolated Communist state are less des- 
perate and somewhat less likely to engage in 
provocative behavior to gain attention and 

The negotiations among North Korea, South 
Korea, the United States and China were ini- 
tially proposed by President Bill Clinton and 
President Kim at an April 1996 summit meet- 
ing as a way to craft a permanent treaty to 

President’s Son 
Is Jailed in Seoul 

By Nicholas D. Kristof 

Nr*' York Tbhes Service 

See KOREA, Page 6 

Kim Hynn Chul was sentenced to three 
years on bribery and tax evasion charges. 

TOKYO — A son of President Kim Young 
Sam of South Korea was sentenced to three 
years in prison on Monday for bribery and tax 
evasion, in a stunning demonstration of how 
South Korean democracy has come to apply the 
rule of law even to the nation’s most powerful 

At one level, foe sight of Kim Hyun Chul, 
President Kim’s second son, being led into 
court Monday in his prison uniform, a guard at 
each side, underscored the corruption of South 
Korean politics and the trades of favors and 
money among politicians and tycoons. 

But at a broader level what was most as- 
tonishing was not that graft occurred, for most 
people in Seoul acknowledge that political 
corruption is as South Korean as kimchi , but 
rather that anyone so close to a president should 
actually be sentenced to prison for iL 

The tradition in South Korea was for pres- 
idents to send their enemies to prison, while 
their family members and cronies were im- 
mune from the law. 

But foe spread of democracy over the last 
decade finally meant that public pressure this 
year forced prosecutors to investigate and in- 

See SON, Page 6 

Mobutu Is Gone, but Fighting Goes On 

James C. McKinley Jr. 

- New York Times Service 

BUKAVU, Congo — Five months 
sfrpr seizing power in the former Zaire, 
Ptetidem Laurent Kahila has yet to gain 
nri&juy control over the eastern 
province of this vast country, and hi? 

rise to power has not brought peace to 
Central Africa as foe regional leaden 
who sponsored his rebellion had 


» r luu foe Ruvenzori Mountains in 
totton Uganda to the hilly ranns of 
Burundi, rebels are still spn»ding ter- 
ror, ambushing soldiers, killinfl inno- 
. ?ni people and in many casw ftajg 
k bno SecSuntty again called Congo to 

■V t&ciDe retribution. 

frenzy of killing in Rwanda in 1994, set 
off foe revolution in Congo last year and 

continues to feed civil war in Burundi. 

“It all boils down to an ethnic con- 
flict," said a UN official in Bukavu. 
“It’s tmtt mn g foe hatred yon see hero." 

The continuing warfare has been a 
major disappointment to Congo s 
neighbors. Rwanda, Uganda and Bu- 
rundi all supported Mr. Kabila’s re- 
bellion last year because, under the 
long-ruling dictator Mobutu Sese Seko, 
Zaire hadnaxbored rebel groups intent 

on overthrowing their governments, 
mw. fog constraints Kab- 

"We recognize the constraints Katv 

ila is under,” Defense Minister Amama 

Mbabazi of Uganda said in a recent 

interview, “and we appreciate the little 
he’s been able to do. We still have a few 
problems. President Kabila has to come 
to grips with his situation." 

In private, officials in Uganda and 
Rwanda say that both countries have 
caged Mr. Kabila to pour more military 
resources into the eastern region or to 
allow the neighboring countries’ forces 
to do the job. 

Fresh units of Rwandan troops have 
been seen crossing into Congo around 
Bukavu in the last three weeks, aid 
workers said. 

fr was Tutsi &nners who spearheaded 

See CONGO, Page 10 

The Dollar 


New York 

Monday • 4 P.M. 

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Monday dose 





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Monday O 4 PM. 

previous close 




Opinion ..... 

••• ■ ••»•»»»»»■ MMHI *11 

Page 11. 
.... Pages 8-9. 
Pages 20-2L 

Attackers Kill 43 on Bus in Algeria 

ALGIERS (AFP) — Suspected Is- 
lamic militants killed 43 bus passen- 
gers, most of them young people, after 
ejecting a roadblock west of Algiers, 
according to reports here Monday. 

AD the victims’ throats were cat in 
the attack early Sunday near Sig, 300 
kilometers (180 miles) west of Al- 
giers. Fifteen other people were re- 

ported to be severely wounded and 
were taken to a hospital in Oran. Some 
of foe dead were decapitated, wit- 
nesses said. 

The killers intercepted the two 
buses around midnight as they were 
traveling west from Algiers to Zouia, a 
town near the Moroccan border. 

Election boycott urged, Page 10. 

John Denver, Singer, Dies Piloting His Plane 

John .Denver, the singer and 

TbeiHT on-line 

. i- in California, Mr. Denver came to 

writer whose albums sold in the mu- feme in the 1970s with such hits as 
liras, died Sunday when the single- “Rocky Mountain High” and “Take 
engine plane he was piloting crashed Me Home, Country Roads. ' 1 Page 4. 

tfnaujc retribution.” 

nouuou. . 

««u«gu foe situation 
ngtoa is chaotic, most of foe fighimg 
toriogc from foe age-old animosity be- 
tween the Tutsi ana Hutu ethnic groups, 
tnrell M between foe Tutsi and Bantu 
groups in Congo who resent what they 
'tefcas the recent Tutsi hegemony. 

It is the same conflict that fueled foe 

A U.S . Governor Savors His China Roots 

Locke of Washington, a Poor Immigrant’s Son, Gets Hero’s Welcome in Village 

MawMtand Prjgg. 

1.000 BO Mala — — 

Qyw» — .csi.oo N| 9 8rta -'- 12 ?SJ^5 

Dtemark„„,l4,00 DKr Oman JrSES 

£ 0A5 Rap- lr# 51: ,R , E n 1 S 

JWan 1.250 JD ^ 


*!tmk 700 FR> Zh®it>w* — BnSWW 

By Rachel Zimmerman 

New York Times Service 


UKV>-- . 

«2R\=-. vt 1 -, v 

lace baa never seen 
dreds of villagers rushed — 

Schoolchildren lined the road to town for 
several kilometers, waving pompra^ttble 
tennis paddles and bouquets erf artificial 

chanted, “Welcoi*, welcome, 
wumly welcome!" m English and 
Toishanese. the Cantonese dialect here. 

Threemrelnng bands, dancers in dragra 
costumes andffiSe girls dressed asj u*eh 
paraded beneath red banners heralding, 
^return of Gov. Gary Locke to Home 


Mr. Locke, a Democrat, is foe fust 
Chinese- American governor in foe United 
States. He won the post in Washington in 
1996. Here, he is hailed as the village’s first 
celebrity descendant 
Mr. Locke trekked to this village of 170 
people in Guangdong Province, where his 
father and grandfather were bom, searching 
for his roots. 

He came with his wife, parents, four sib- 
ling? and an army of reporters and Chinese 

“It’s overwhelming," said Mr. Locke, 
who spent 11 years in foe Washington Leg- 
islature and three as King County executive 
before his election as governor. 

“In government, you never know how 
many people you touch and impact when you 

main* a policy. But here, when 1 do nothing, 
they come out like this. I’m just touched that 
they could be so proud of us.” 

Scores of reporters tried to peer through 
foe blocked doorway as Mr. Locke bowed 
before a shrine in the stone room where his 
80-year-old father was bom. They strained to 
watch as he was shown a wall of snapshots 
and portraits chronicling the Locke family's 
scatt eri n g to cities around foe United 

And as foe governor kneeled before his 
great-grandfather's grave at foe 

edge of a vast rice paddy, photographers 
captured his famil y burning incense and of- 
fering a roasted pig as sacrifice. 

Jimmy* and his wife, Mona, m the hamlet of 47 families! 

See ROOTS, Page 6 

\ “Sfa- 



Troubleshooting in Bosnia / 'That Was Fun, Wasn't It' 

U.S. Diplomat Relishes the Hot Spots 

By Lee Hockstader 

Washington Post Service 

S arajevo, Bosua-Herze- 

govina — Inside the hotel 
were dozens of armed men, 
tense and grim as armed men get 
when there are people nearby who 
intend to do them serious harm. 

Outside, surrounding the hotel, 
was a mob. The mob was drinking 
and the mob was not friendly. 

•‘Remember Ccausescu!” 
bowled a man in the mob with a 
bullhorn, referring to Che Romanian 
dictator who was lrillwt by a Bring 
squad after a Bucharest crowd 
turned against him. 

That’s where things stood when 
Jacques Klein, a tough-talking, ci- 
gar-chomping American diplomat, 
showed up at the Bosna Hotel, a 
dreary es tablishment »» th/»- Beaman 
Serb city of Banja Luka. The early 
September showdown between 
rival factions in the Serb-controlled 
half of Bosnia was well into its 
second day and about to reach its 
denouement. And Mr. Klein — 
heavy-set, bluff, profane — was 
where he enjoys- being: in the 
middle of things. 

“That was fan, wasn’t it?” said Mr. Klein, 
smiling wryly as he recounted the events Wash- 
ington has portrayed as one of the most serious 
threats to peace in Bosnia in two years. 

Mr. Klein, 58, whose formal tide is principal 
deputy high representative in Bosnia, is the West’s 

by Secretary of State Madddoe^brighL * 

French -bom and American-reared, Mr. Klein is a 
veteran diplomat who has been around his share of 
conflicts. He was an intelligence and psychological 
operations specialist in an air commando unit early 
in die Vietnam War, a consular officer at the U.S. 
Embassy in Beilin at die height of the Cold War and, 
until this summer, die United Nations’ adminis- 
trator in Eastern Slavonia, a war-shattered sliver of 
Croatia on its border with Serbia. 

A student of history with broad experience in 
European political and military affairs, Mr. Klein 
now has the task of somehow coaxing, cajoling and 
bullying Bosnia's mutually antagonistic Serbs, 
Croats and Muslims into a unified, multiethnic state 
that many of them do not want. In the two months he 
has been on the job, Bosnia has careened from one 
crisis to die next, and Mr. Klein .has ended up as a 
high-ranking troubleshooter in a place where trou- 
ble is everywhere. 

WidrCoiUaidn'hrVMnn^ira Am 

Jacques Klein has the task of somehow coaxing, cajoling and 
bullying Bosnia's warring ethnic groups into a unified state. 

“Bosnia is like an ulcer,” he said. “It hasn’t 
healed yet” 

Many here and in the West think it never will 
Nearly two years after a peace deal mediated by the 
United States, Bosnia's progress toward building a 


35,000 troops here under NATO command by next 
summer, Bosnia will quickly descend into a fresh 

round of bloodshed. 


UT Mr. Klein is not a pessimist by nature or 
job description. Even as he rashes from one 
confrontation to another, he has joined the 
chorus of official voices arguing that the achieve- 
ments of the past two years in Bosnia have been 
overlooked, mat patience will yield greater results 
over time and that the interests of the West are too 
great to walk away. 

In the process, he has been caught up in the 
deepening debate about America’s role in Bosnia: 
How and under what conditions will it ever extract 
itself? Should Washington be choosing sides in the 
confrontation between rival factions of Bosnian 
Serbs? Should U.S. troops risk casualties for the 
sake of arresting indicted war crimes suspects from 
a war most Americans neither understood nor cared 

deeply about? Mr. Klein argues that 
there is no choice but to maintain a 
substantial Western, and specifics!- ' 
ly, American, military and diplo- 
matic presence in Bosnia. 

“ wiat is the alternative?” he 
asked rhetorically. “The alternative 
is chaos, which no one wants.” 

Nonetheless’, chaos is getting to 
be a specialty of Mr. Klein's. 

Within weeks of his arrival this 
summer, he took it upon himself to 
resolve a tense standoff involving a 
television transmitter, 300 Amer- 
ican troops and a nearly equal num- 
ber of drunken, menacing Serbs on 
a remote hillsi de in northeastern 

The Americans gave up the trans- 
mitter. The Serbs, hard-liners loyal 
to former President Radovan 
Karadzic, who has been indicted for 
war crimes, promised to end their 
inflammatory anti-NATO broad- 
casts and give an hour of air time 
nightly to dissenting views. 

Many diplomats in Bosnia said 
Mr. Klein had given away the store, 
accepting a new set of empty prom- 
ises from the Serb hard-liners while 
sending a signal of weakness with 
the withdrawal of U.S. troops. 

Only slightly fazed by the criticism, Mr. Klein 
acknowledges the conditions he set were “spon- 
taneous,” while pointing out drat Serb broadcasts 
have become somewhat milder in the month since 
he swung the transmitter deal. 

“We weren't going to keep the transmitter, any- 
way,” he said. “We actually got something far it” 

Barely a week later, Mr. Klein flew into Banja 
Luka to defuse another, potentially much more 
serious crisis, again instigated by Karadzic loy- 

This time, more than 75 busloads of Karadzic 
supporters were on theirway to the stronghold of his 
rival, the U.S. -backed president of the Serb Re- 
public, Biljana Plavsic, fora “political rally” led by 
Mr- Karadzic's top deputy, Momcilo Krajisnik. But 
the rally seemed more likely to turn into a rampage 
through the streets led by armed thugs. 

Working the phone through the night, Mr. Klein 
persuaded top NATO commanders to block the 
buses from reaching the city. On the phone with Mr. 
Krajisnik, he threatened that Western troops would 
use force, if necessary, to prevent his people from 
running amok in Banja Luka. 

“He’s a stupid Serb, he's really dumb,” said Mr. 
Klein, describing Mr. Krajisnik in a character- 
istically undiplomatic assessment. 


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Arte and Antiques 

every Saturday 


Iran Loosens Up a Bit 

As Power Shifts, Fun Makes a Comeback 

By Douglas Jefal 

New York Tunes Service 

people b 

who remember the New City as 
Tehran’s red-light district, crawling 
with gamblers, pimps, addicts and the 
patrons of its several brothels, none of 
Which ever raised a blink from Shah 
Mohammed Reza Pahlavi 

Of course, the revolution of 1979 
brought an abrupt end to the shah's reign 
and to such un-lslamic diversions. The 
strict social restrictions imposed since 
then have hindered even healthy forms 
of recreation, particularly in south 
Tehran, a gritty andoften staling quarter 
whose poverty is not easy to escape. 

It was Ayatollah Ruhollah Khomeini 
who once gloomily declared, “There is 
no fun in Islam.” But a new spirit has 
seized the Iranian capital since the elec- 
tion in May of a new president, Mo- 
hammed Khatami 

It may be nowhere more in evidence 
than in what is now Razi Park, where the 
farmer site of dens of sin has been 
transformed into a vast public space with 
gardens, an artificial lake, bumper cars 
and even the occasional in-line skater. 

Asked what she expected from Mr. 
Khatami and his government, a mother 
oftwo who was among the recem visitors 
flashed a wicked grin from beneath her 
black chador and said, “More fun!” 

“Next, I want to ride a bike,” said the 
w oman, Afanseh Khani, 3 1 , offering the 
clear suggestion that she has put up long 
enough with rigid rules like those that 
bar women from bicycling in public lest 
they arouse male hist. 

The New City was tom down by 
revolutionaries who regarded it as a 
symbol of the worst of western culture. 
But the wreckage sat untouched for well 
over a decade until the municipal gov- 
ernmentfound the money to transform it 
into tiie biggest and newest of the 600 
parks it has boil tin the last eight years as 
part of an effort to restore some green 
areas to what has become a sprawling, 
smog-choked capital 

Since the day last month when Mr. 
Khatami himsen presided over an open- 
ing ceremony, Razi Park has become a 
magnet for people who say they agree 
with the new president that there is room- 
in Islam for more personal space. 

"We need a good and healthy so- 
ciety, not a society with too much re- 
striction and dictatorship, and not one 
with too much freedom either,” said 
Shahin Ahmedi, 41, who sat among a 
group of well-cloaked women but was 
watching with tolerance as a teenage 

girl broke another taboo — for females 
— by lighting up a cigarette. ' ! 

hi wealthier north Tehran, near the 
base of the Elburz Mountains, residents 
have long had leafy areas to flock 'tq, 
while those who can afford it have been 

on weekends. Behind closetTdrors arp 
parties where people dance to forbidden 
Western wmsie and drink forbidden al- 
cohol that some even produce at home! 

But since the revolution, the chance 
to play in public has been constrained b}r 
a long list of restrictions, including 
those that forbid women from appearing 
unless they are properly covered, mean- 
ing at minimum a tightly bound scarf 
and long raincoat ■ 

Any transgression — an unmarried 
couple, for example, out together for^ 
stroll — always carries the risk of dev-' 
taction and punishment, sometimes 
even a night or two in jail * 

But gradually, some of those rules aife 
being loosened, so that ii is no longer 
uncommon to see young women wean- 
ing makeup, which was previously 
banned, or sporting platform shoes and 
varnished toenails beneath their cloaks. 

The appetite for more freedoms $ 
apparent even in south Tehran, with its 
reputation for conservatism. Among 
those who found a quiet park bench onp 
recent evening was a young couple who 
finely admitted to being unmarried and 
declined only to provide last names. J 
“If people expect that women are, 
going to be allowed to walk out in toa 
street uncovered, that's not going to* 

, because that's not our culture, ; 
the young man, Amin, 26, a gov- 
ernment employee. Then be pointed to 
himself and Mogjann, 22, a university 
student, and said, ‘ ‘But who’s to say thip 
there’s something wrong with this?” ■- 
There is no doubt that the victory of 
Mr. ‘Khatami has left some Iranians reel- 
ing bolder. But some of Mr. Khatami’6 
opponents have also been active. In thfe 
city of Isfahan, a five-boor drive south 
of Tehran, there have been disturbances 
near the Imam Mosque against the rity'k 
chief cleric. Ayatollah Jalaleddin Ta*- 
heri, whom toe protesters fault for apt- 
painting a substitute Friday prayerfc 
leader they consider too liberal. 1 
Ayatollah Taheri, who supports Me,* 
Khatami, has blamed the protests on\ 
disgruntiement in the wake of toe eled- - 
tions. But in a statement addressed to 
him, the radical group Ansar e-Hezbob- 
lah — or Supporters of toe Party of God 
— described toe objections as rooted ii 
Iran's religious doctrine and warned, 

' ‘We are going to fight to toe end.” : 

Cholera Deaths in Kenya Top 200 

NAIROBI (AP) — Cholera has killed eight more Kenyans, 
bringing the death toll since toe outbreak began two months 
ago to more than 200, health officials said Monday. 

The bacterial infection has now spread to toe Lake Victoria 
port of Kisumu, Kenya’s third-largest town, said Dominic 
Mutie, disease control officer with the World Health Or- 
ganization. Eight people died there over toe weekend. 

A Singapore -Scotland Rail Link 

BANGKOK < AP) — One of toe world 's longest train rides 
— a 9300-mile (15,000-kilometer) journey from Singapore to 
Scotland — is getting closer. 

Planners and engineers are putting together the last links of 
a vast rail network that will link the far reaches of Asia and on 
to Europe. 

About 1,200 miles of rails remain to be laid in Asia, and a 
railway tunnel must be dug under toe Bosporus, linking the 
European and Asian parts of Turkey, before the four-decades- 
old dream becomes reality. 

Pater G. Catania 

flora* 6 Hrtum 

US Dollar Up or Down? 

US Dollar Policy Will Generate 
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These moves will directly affect the value of 
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Israel 1771000102 /tab 187875020 

Korea 0031110243 i*aw*MJ* 08004658 













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Forecast for Wednesday through Friday, as provided by AccuWeattw. 

North America 

Turning cooler In the 
Northeast Wadnaaday with 
showara, tan cry end cool 
into Friday. Thu Southwest 
be sunny, hot and dry, 
white the reel of the West 
wfli be sunny and ptaaaant 
Cloudy with showers and 
areas of rain from Texas 
along the Gulf coast to 


Cloudy and cool with 
showare across England 
and northern Franca 
Wadnaaday, than milder 
with soma sun Thursday 
and Friday. Cloudy, damp 
and chilly with periods of 
rain from me Balkans to 
Romania and nortti to 
Poland. Moscow M have 
a cold min, white enow Is 
Italy at 8L Petersburg. 

Wednesday, than dry and 
cool with soma sun 
through Friday. Pleasant In 
Seoul Wadnaaday. then 
turning cooler with show- 
era. Partly sunny and com- 
fortable In Tokyo, but It 
may shower by Friday. 
Warm and humid with 
soaking rvfc across south- 
eastern China. 



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3VBB 24778 C 
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2802 24/76 pc 
3301 17702 pc 
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j^:A jet aircraft of the type Chuck Yeager flew when he broke the sound barrier. 

He Still Has the Right Stuff 

50 Years On, Yeager to Break Sound Barrier Again 

i**- • 

-T7' -■ 

' • ' j iv . . ' 


, LOS ANGELES — On Tuesday, Chuck 
; Yeager flies back to the future he helped 
' fame as a 24-year-old test pilot with “the 

_ at stuff” to take on the speed of sound. 

1 ; At precisely 10:22 AJVf!, he will once 
again pilot a plane through the sound barrier 

f .more than 30,000 feet (9,090 meters) above 
'pdwards Air Force Base. 

When he did it the first time on Oct. 14, 

• .1947,' the sonic boom reverberated from 
. ^Southern California around the world, 

'* opening up a future of supersonic flight and 
.space travel. 

", On Tuesday, Mr. Yeager, a retired Air.. 
| Force brigadier general, will not be at the 
controls of the same orange X-l rocket 
_plane nicknamed 4 ‘Glamorous Gleams” 
after his wife. This tune, he will be buckled 
.in to the cockpit of a modem fighter plane, 

’ the F- 15. He will be accompanied in an F- 16 
j “by Bob Hoover, who was his backup in 1947 
. “and who photographed the X- 1 hurtling past 

with characteristic diamond-shaped shock 
waves blasting from its four rockets. 

Another difference this time is that the 
world will hear about his flight In 1 947, the 
government kept his feat secret until June 
15 the following year. 

Mr. Yeager, 74, is a man of few words. In 
a recent Los Angeles Times interview, be 
played down breaking the sound barrier. 

“I didn’t do it for personal benefit” Mr. 
Yeager said “I didn't look at it that way, it 
was duty.” 

What he fails to mention is the risk 
involved. Many feared that an aircraft ex- 
ceeding the speed of sound at 40,000 feet 
would disintegrate. If anything went wrong, 
there was liule chance of survival. 

As it turned out Mr. Yeager’s 31 -foot 
plane with four rocket engines producing 
6,000 pounds (2,727 kilograms) of thrust 
and fueled by liquid oxygen and alcohol 
performed perfectly after dropping from the 
belly of a B-29 bomber at 26,000 feet. 

• •A Jet-Powered Car Nearly Does It on Land 


GERLACH. Nevada — 
.“.A jet -powered car came 
within a whisker of breaking 
.the sound barrier on land on 
.'Monday, missing it by 1 ms 
i than 10 miles per hour, team 
1 officials said. 

The Thrust SuperSonic 
cm* driven by Andy Green, a 
^•British Royal Air Fbrce pi- 
lot, roared across the Black 

Rock desert at 749.69 miles 
per hour (1,199.50 kilome- 
ters per hour) or 99.7 per- 
cent of the speed of sound, 
the official tuners said. 

There was a muffled 
boom as the car raced across 
the desert in clouds of dust. 
When die official timers an- 
nounced that die car had 
narrowly missed breaking 
the sound barrier, Richard 

Noble, the team leader, said 
the car made die fastest 
timed run in history. 

The sound barrier varies 
according to altitude and 
temperature. It is currently 
755 miles per hour on the 
Black Rock desert Mr. 
Green set the world speed 
record for a car on Sept 25 
when he took Thrust up to 
714 mph. 

In Caracas, Clinton Sees Trade Pact ‘Within Reach 5 

The Associated Press 

CARACAS — Appealing 
for free trade throughout the 
Western hemisphere. Presi- 
dent Bill Clinton told 
Venezuelans on Monday that 
he saw “a democratic and 
prosperous family of the 
Americas within our reach.” 

The president ended a 24- 
hour state visit with an ad- 
dress to the Venezuelan 
people and approval of agree-, 
meats an energy cooperation 
and anti-drug efforts. 

Mr. Clinton said the United 
Stales was determined to 
work with Venezuela “as 
friends and partners to claim 
the benefits and cany the bur- 
dens of this new era.” 

With President Rafael Cal- 
dera at his side, Mr. Clinton 
also aimed a message at Con- 
gress, where he is waging an 

uphill battle to obtain “fast- 
track” trade authority, which 
would give the administration 
a stronger hand in negotiating 
trade agreements. He also 
wants more freedom to ne- 
gotiate what he called a 
“free-trade area of Amer- 
icas” by 2005. 

“From Alaska to Argen- 
tina we will tear down the 
barriers of the past and open 
wide die doors of the 21st 
century,” Mr. Clinton said 
before heading to Brazil, the 
second stop on his first trip to 
Latin America. 

“Whether we all like it or 
not, global economic integra- 
tion is on a fast track,” he 

Mr. Clinton, the-first for- 
eign head of state to be invited 
to speak at the National Pan- 
theon, delighted his audience 

when he acknowledged the 
honor in Spanish. “Todo esta 
chevere en Venezuela!” he 
called to cheers. Loosely 
translated from local slang, it 
means “Everything is cool in 

Mr. Caldera thank ed Mr. 
Clinton for a visit that held 
special significance as “an 
acknowledgment of our sov- 
ereignty and the unification 
of our identity as Latin Amer- 

Before flying to Brazil, Mr. 
Clinton and his wife, Hillary 
Rodham Clinron, received a 
symbolic key to the city of 
Caracas and laid a wreath of 
red, white and blue carnations 
at the tomb of Venezuela's 
most- -revered hero, Simon 
Bolivar, who led the fight to 
end Spanish rule in the 1800s. 

“He was the first to imag- 

ine a hemisphere of democ- 
racies," Mr. Clinton said 
“Today, our hemisphere is 
growing closer every day." 

“We have put the age-old 
dream of a democratic and 
prosperous family of the 
Americas within our reach," 
he added 

Earlier, he and Mr. Caldera 
presided at a signing ceremo- 
ny of accords extending co- 
operation in the fight against 
narcotics by giving 
Venezuela more than $1 1 mil- 
lion in equipment, including 
patrol boats and surveillance 
planes to spot smugglers. The 
United States and Venezuela 
also will establish a joint in- 
telligence center to share in- 
formation and coordinate 
anti-drug operations. 

Venezuela is a major drug- 
smuggling route from 


Quayle Gets in Swing 
Of Presidential Race 

WASHINGTON — He’s tanned.. 
He’s fit And he’s so ready to ponder a 
White House run in 2000 that he's 
willing to go three whole weeks with- 
out playing golf. 

‘TMooe, zero,” said former Vice 
President Dan Quayle, conceding that 
any such race would slice “big tune” 
into his- beloved game. 

Of late he has been traveling the 
country to gauge whether the man once 
ridiculed as a lightweight might now 
seem fresh and maybe even a few years 
ahead of the political curve. Clearly, a 


ington — judging from the crowd of 
nearly 100 Quayle-ites at Georgetown's 

Cafe Milano for a reunion Saturday. 

At 50, Mr. Quayle’s face is still 
boyish, his demeanor still fra I -house 
friendly. Indeed, in a sea of suits and 
ties, he sported a polo shirt, chinos and 
loafers sans socks. 

“People look at me and say, ‘You 
really aren’t from Washington,’ ” Mr. 
Quayle said. In fact, the Quayles live in 
Phoenix, Arizona. (WP) 

Farrakhan Proclaims 
A ‘Day of Atonement 9 

WASHINGTON — Millions of 
black Americans will participate in a 
“day of atonement” by staying home 
from work and school Thursday, the 
Nation of Islam leader, Louis Farrakhan, 
predicted in a television interview. 

He said the day. coming on the 

second anniversary of the “Million 
Man March” in Washington that Mr. 
Farrakhan organized, had its roots in 
Yom Kippur, the Jewish Day of Atone- 
ment “We believe that the children of 
Israel are a sign or a prototype of the 
400-year suffering of blacks in Amer- 
ica," he said- (AP) 

Quote/ Unquote 

Attorney General Janet Reno, after 
Newt Gingrich, the House speaker, 
said she “looks like a fool” in the 
campaign fund-raising inquiry: 
“Name calling may be an appropriate 
tactic in politics, but what were trying 
to do is to conduct the best, most thor- 
ough investigation we possibly can, 
and one of die things that I can’t do is 
tell the speaker what I’m doing in the 
course of the investigation.” (NYT) 

Colombia to illicit markets. 
Ike country serves as a trans- 
shipment point for perhaps 
100 metric tons of cocaine 
and 10 tons of heroin a year. 

The agreements signed 
Monday at the Mirafiores 
Palace also included a pledge 
to pursue a treaty ensuring 
equal treatment under 
Venezuelan law of U.S. 
companies that do business 
here, to promote diverse, 
competitive energy markets, 
and to cooperate in science 
and technology. 

Last year, Venezuela re- 
placed Saudi Arabia as the 
United States' top foreign 
supplier of oil, and Mr. Clin- 
ton saluted the nation as “a 
rock of stability, staying out 
of the oil embargo, stepping 
in to boost production in mo- 
ments of crisis, from World 
War II to the Gulf War.” 

The White House hopes 
Mr. Clinton’s journey to 
South America will help per- 
suade Congress to approve die 
“fast-track” trade authority 
he wants in order to negotiate 
a hemispheric free-trade zone 
at die Summit of the Americas 
scheduled for next spring. 

Administration officials 
say there is a huge potential 
for U.S. companies in Latin 
America. American exports to 
the region are growing twice 
as fast as to any other part of 
the world and — by 2010 — 
are projected to be greater than 
to the European Union and 
Japan combined. 

Away From Politics 

• A man surrendered in Atlanta after a six-hour standoff in 

which one police officer was shot to death and another 
critically wounded. Gregory Hall Lawler, 45, was charged 
with murder and aggravated battery. {AP) 

• The U.S. Army has decided to appoint Command Ser- 

geant Major Robert Hall as its new senior enlisted soldier, 
acting several days after- removing Gene McKinney, who 
faces a court martial on sexual misconduct charges, from the 
post of Sergeant Major of the Army. (AP) 

• A helicopter crashed in a remote area near Sago, West 

Virginia, killing four people, including a member of the state 
board of education and a coal company executive. (AP) 

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John Denver, Singer, Dies in Crash 

The Associated Press 

PACIFIC GROVE, California — 
S™ Denver, 53, whose L970s hits like 

Rocky Moo main High” and ‘Take 
Me Home, Country Roads” won him 
nmlions of fans worldwide, was killed 
when his experimental plane crashed 
into Monterey Bay. 

The identity of the body, pulled from 
waters after Sunday’s crash, was 
confirmed from fingerprints sent from 
Colorado, Sheriff Norman Hicks of 
Monterey County said Monday. An 
autopsy was planned. 

“He loved flying,” Ten MarteLL, 
whose sister Annie was Mr. Denver’s 
first wife, said. “He died doing 
something he loved.” 

As the sun rose over the crash site 
Monday, a Coast Guard helicopter 
circled overhead, appearing to look for 
more debris from the crash, and a Coast 
Guard ship floated over the site about 
100 yards from shore. 

The plane, which he owned, was 
made or fiberglass with a single engine 
and two seats. It was considered an 
experimental aircraft, said Lieutenant 
Carl Miller of the Pacific Grove po- 
lice. The plane took off from Monterey 
Airport shortly after 5 P.M. Sunday, 
with the first reports of a crash at 5:27 

P.M. Only Mr. Denver was aboard. 

The plane was flying about 500 feet 
(150 meters) in die air “when it just sort 
of dropped unexpectedly into the 
ocean.” Lieutenant Miller said. 

Mr. Denver, a licensed pilot, was in a 
previous plane accident in April 1989. 
He walked away uninjured after the 
1931 biplane he was piloting spun 
around while taxiing at an airport in 
nonhem Arizona. * 

Bom Hairy John Deutschendarf Jr., 
the son of a U.S. Air Forcepilot, he took 
his stage name from the principal city in 
Colorado, where he eventually made his 

In the mid-60s, he was chosen from 
250 other hopefuls as lead singer for the 
Chad Mitchell Trio as a replacement for 
the departing Mr. Mitchell. But the trio's 
best years were behind it by then, and he 
left in 1969 for a solo career. That same 
year, his song “Leaving on a Jet Pland’ ’ 
became a big hit for Peter, Paul and 

Soon, Mr. Denver's own records — 
melodic, light folk-pop with touches of 
country — began combing the charts. 

He scored with songs like “Sunshine 
on My Shoulders,” “Annie’s Song” 
(written for his first wife), “Back Home 
Again” and “Thank God I’m a Country 

Boy.” He was named Country Music 
Entertainer of the Year in 1975. 

Fourteen of his albums went gold, 
selling more than 500,000, and eight 
were ranked as platinum, with more than 
a million sold. The LP “John Denver’s 
Greatest Hits” is still one of the largest 
selling albums in the history of RCA 
Records, with worldwide sales of more 
than 10 million copies. 

* His handsome smile and cheerful im- 
age — sort of a clean-cut hippie who 
could appeal to all generations — made 
him a winner on countless TV specials. 

He has strong appeal to overseas audi- 
ences as well, with many gold and plat- 
inum records in other countries. In 1 985, 
he toured the Soviet Union in the first 
performances by an American artist 
since an earlier suspension of cultural 
exchanges. He was the first artist from 
the West to do a malticity tour of main- 
land China, in October 1992, and sim- 
ilarly in Vietnam in May 1994. 

In 1976, Mr. Denver co-founded the 
Windstar Foundation, a nonprofit en- 
vironmental education an d research cen- 
ter that works toward a sustainable fu- 
ture for the world. 

He also was active in fighting world 
hunger and had an avid interest in space 

White House Unit 
Rebuts Lawyers 
On ‘Coffee Videos’ 




John Denver: A handsome smile and a cheerful image. 

Wes Gallagher, 86, Oversaw Revamping of Associated Press 

New York Tones Service 
Wes Gallagher, 86, who as 
president and general man- 
ager of The Associated Press 
oversaw substantial changes 
in news coverage and the use 
of technology, died Saturday 
in Santa Barbara, California. 

Mr. Gallagher, a booming- 
voiced Californian who was a 
daring and respected war cor- 
respondent in World War EL 
was the news agency’s gen- 
eral manager and chief ex- 
ecutive from 1962 until 1976. 

He was also its president from 
1972 to 1976, retiring at die 
mandatory age of 65. 

The AP is a cooperative 
owned by member newspa- 
pers and radio and television 
stations in die United States. 
In 1976 its news appeared in 
up to 1 .300 newspapers, went 
to 3,500 radio and television 
stations in the United States 
and was transmitted to 100 
foreign countries. 

During Mr. Gallagher’s last 
decade at The AP. he oversaw 

an evolution in its perception 
of what was news. 

In that period, the news ser- 
vice kept reporting about 
news events as they occurred 
but it came to put a new em- 
phasis on dispatches that tried 
to go beyond the hard facts of 
the news. By 1976, the agency 
was sending subscribers “in 
depth” stories about such 
topics as lifestyles, inflation 
and the environment. 

As general manager, Mr. 
Gallagher oversaw the ere- 




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ation of a team of energy spe- 
cialists who wrote interpretive 
and background stories about 
that era’s oil shortage. He cre- 
ated a “Mod Squad” of rov- 
ing reporters to write about 
die evolutions in American 
lives that began in the late 
1960s. And he set up a special . 
group of reporters to chronicle 
urban problem in the 1970s. 

In the technical field, Mr. 
Gallagher oversaw the use of 
computers in various aspects 
of the agency’s gathering and 
reporting of the news, along 
with an acceleration of the 
transmission of news that was 

ai advances. His other inno- 
vations included founding a 
division to compile “instant" 
books about important events. 

Thomas Whiteside, 79, 
Writer for New Yorker 

New York Tunes Sen’ice 
Thomas Whiteside, 79, a 
writer who made a career of 
tarkling extraordinarily com- 
plex topics — from toxic 
chemicals to media conglom- 

eration — for The New York- 
er, died of heart failure Oct 
10 in West Cornwall, Con- 

Mr. Whiteside worked at 
the magazine for 45 years, 
writing about subjects as 
whimsical as the model 
Twiggy and as serious as the 
perils of a class of chemicals 
called dioxins. These were 
used in Agent Orange, a herb- 
icide dropped extensively on 
Vietnam in the Vietnam War. 

Robert H. O’Brien, 93, 
Ran MGM in the ’60s 

New York Times Service 

Robert H. O’Brien, 93, an 
early member of the Secu- 
rities and Exchange Commis- 
sion who later presided over 
the Metro-Goldwyn-Mayer 
film studio in the 1960s, died 
Oct 6 in Seattle. 

Mr. O’Brien ran MGM dur- 
ing a particularly turbulent 
time. While the studio pro- 
duced sane of its greatest hits 
— including “Doctor Zhiv- 
ago” and “2001: A Space 
Odyssey” — its uneven prof- 

itability disappointed some 
shareholders, who chalier , 
Mr. O'Brien's leadership, 
resigned as chairman in 1969. 

C. Benson Branch. 82, a 
former president and chief ex- 
ecutive of Dow Chemical Co., 
died Oct 4 in San Antonio. 
An executive who spent his 
39-year career at Dow, Mr. 
Branch made his mark devel- 
oping the international side of 
Dow’s business, markets the 
company had largely ignored 
from its creation. (NYT) 

Fred Fang Yu Wang, 84, 
an artist, calligrapher and ex- 
pert in Chinese an who helped 
develop the first computer 
system to teach Chinese, died 
Oct. 6 in New York. He taught 
Chinese language and liter- 
ature at Yale University from 
1945 to 1965, then joined the 
faculty of Seton Hall Uni- 
versity in New Jersey, where 
he became chairman of the 
department of Asian studies 
and curator of the Oriental Art 
Collection. (NYT) 

By George Lardner Jr. 

Washington Post Service 

official of die White House 
Communications Agency has 
told Senate investigators that 
his unit never received a 
memorandum that White 
House lawyers say they sent 
in April asking for videotapes 
of President Bill Clinton’s 
coffee sessions with donots. 

In a deposition, Steven 
Smith, the communications 
office’s chief of operations, 
swore that his agency was 
never asked for videotapes or 
other records of the coffees 
until about two weeks ago. 

All tie received last April, 
he said in the Friday depos- 
ition, was a two-page list of 
individuals and organizations 
caught up in the investiga- 
tions of the 1996 campaign’s 
fund-raising practices. 

The White House counsel, 
Charles Ruff, has said he sent 

the communications office 

and other White House units a 
four-page memo. 

He repeated this assertion 
on Sunday in an ABC tele- 
vision interview. Mr. Ruff 
said that 44 coffee tapes dis- 
covered on Oct. 1-2 were 
among materials the White 
House Communications 
Agency was asked to search 
for months ago. 

Mr. Ruff implied that the 
agency was at fault for the 
belated discovery. 

But less than an hour later, 
the White House tentatively 
acknowledged another foul- 
up and said it appeared to 
have been made “inadvert- 
ently” by die White House 
Military Office, which is an 
intermediate point for paper 
traffic between Mr. Ron’s of- 
fice and the WHCA. 

Run by a political ap- 
pointee, Alan Sullivan, die 
White House Military Office 
supervises 845 career mili- 
tary personnel in the commu- 
nications agency and gives 
them their day-to-day instruc- 
tions, including which events 
the crews should record. • 

Mr. Smith’s statements 
contradicted an explanation 
that was put out last week by 
White House lawyers and 
seems certain to amplify cod 1 
gressional anger over belated 
production of subpoenaed 
white House records, an#* 
debate over who was -asked 
for what and when. 

Mr. Sullivan referred 3H 
questions to a White House 
special counsel, Lanny <3- 
Davis, who responded: ’a, 
“‘We understand that i 
military office, when it witp? 
producing copies of RuflPs 
four-page Apnl 28, directive, 
may nave inadvertently neg- 
lected to photocopy die first 
two sheets of the directive,*!? 
which reference to materials 
relating to ’coffees' was ex- 
pressly included.” -3 
In addition to the 44 coffee*- 
session videotapes turned 
over to congressional and 
Justice Department investiga- 
tors on Oct. 4 and 5, the White « 

House has found more than 
100 other videotapes and ai£- 
dio tapes of Democratic NtT- 
tional Committee “ finance^ t 
related events” and plans to ™ 
make them public this week.’ 

These tapes, featuring Mr. 
Clinton at rund-raisers across 
foe country, were said to 
show him heaping praise cto 
two money men, John Huang 
and Yah Lin (Charlie) Trie, 
for their support. '■ 

Other subjects covered by 
subpoenas, such as Mr. Clin- 
ton s radio addresses. ba\4 
yet to be tracked down. ■*} 
WHCA has been widely 
depicted as having told White 
House lawyers that it did not 
videotape private or closed 
events such as Mr. CUntod'S 

Mr. Ruff sustained that ini 1 - 1 * 

pression on television Sunday 
when asked if “WHCA lift 
to you.” 

“This isn’t a matter of tyL 
ing,' ’ Mr. Ruff said. 

“This is a matter of godi 
solid career people who 
pushed the wrong button of 
asked foe wrong question of 
the computer.” 

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A funeral service for 
who died in le Kremlln-Bicetrc, 
France on October 9 , 1997 
will be held on Wednesday, 
October 15 at 11A.M. 
at St Marcd de la Salpetricre 
82, boulevard de ITiopiol 
Paris 1 3c 

followed by cremation 
at P ire Lachaise at 2 P.M. 



Beloved Husband of the late 
Nancy Florsheim Goldberg; 
devoted father of Lisa. Nan 
(Nickel Van Clevc) Geoffrey 
(Lynne Remington) Goldberg; 
loving grandfather of LBliaa Van 
Oevc and Nathan Goldberg; dear 
brother of the late Lucilie 
Goldberg Sirause; fond Uncle of 
Peter (Susan) 5trauss, Ellen 
(William) Hunt Jr. and tbe late 
Barbara frames) HeDer. Memorial 
services to be announced. 

? & »•- ...i > rf- 

Mexican Workers vs. Unions 

Government Exercises Control Through Locals 

By Sam Dillon 

New York Timex Service 

TIJUANA, Mexico — For 
three ( years, Armando 
Hernandez belonged to a gov- 
ernment-controlled union he 
had never heard of. led by 
labor bosses he had never 
seen. His 85-cents-an-hour 
wage was set by a contract 
negotiated in secret that he 
was not allowed to read. 

Mr. Hernandez began to 
figure all this out recently 
when he and scores of othor 
welders walked off their jobs 
at the Korean-owned Han 
Young factory in Tijuana, de- 
manding a raise and vowing go 
form an independent union. 

A stranger appeared, iden- 
tified himself to workers as 
their anion representative, and 
said they were lucky to be 
earning twice Mexico’s min- 
imum wage, which is about 4-1 
cents an hour. Infuriated, foe 
workers began pelting the man 
with their welders r gloves, 
driving him from tbe plant 

But it has been harder for 
the workers to get rid of foe 
hitherto-secret union itself, 
which is affiliated with die 
governing Institutional Rev- 
olutionary Party, or PRL 


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After months of turmoil, 
Han Young workers voted 
overwhelmingly on Oct. 6 to 
oust the FRI union and rec- 
ognize one of their own 
choosing. But a government 
labor board has refused to an- 
nounce the results, and Mr. 
Hernandez and his colleagues 
are charging fraud. 

Union elections in Mexico 
are often disputed, but this one 
has attracted rare attention. 

American trade unionists 
and other sympathizers, many 
of whom traveled to Tijuana 
to monitor the balloting, as 
well as several members of 
the U.S. Congress, are point- 
ing to (he case as an instance 
of labor abuses they say are 
routine despite Mexico’s 
pledges under a side accord of 
the North American Free 
Trade Agreement to respect 
tbe right of workers to form 
independent unions. 

“The government is 
to swindle this election,’ ’ : 
Teresa Valladolid, a field rep- 
resentative for foe AFL-CIO 
who attended the vote. 

The Han Young plant 
where Mr. Hernandez works, 
which makes chassis for tract- 
or trailers, is one of Mexico's 
2,700 border assembly plants, 
called maquiladoras, which 
assemble imported parts for 
re-export tax free. Not one of 
these plants has an independ- 
ent union, labor experts say. 

The turmoil at Han Young 
is one of a number of recent 
challenges to the country’s 
authoritarian labor system, 
which Mexican laoor lawyers 
and other critics say has 
served mainly to turn out 



votes for the PRI on electiori 
day and to keep labor cheap, j 

The efforts by American^ 
to aid the Han Young workers 
have angered Tijuana em 

“This is an attempt by fot 
U.S. labor movement tej 
destabilize Mexico’s ma+ 
tiladora industry,” sai4 
fose Mandujano Alvarez. ^ 
prominent strategist for 
Tijuana employers, whd 
watched foe OcL 6 vote. ‘ Tt’^. 
part of their strategic plan to 
provoke our workers. j 

There are other causes for 
foe sparks of restiveness 
among Mexican workers. Lo-j 
cal PRJ unions like foe one af 
the Han Young plant be! 
to labor federations that 
wings of the party, giving PJ 
leaders considerable control. 

Bat now there is a poweif 
vacuum; the recent death of iT 
Fidel Velasquez, the couni 
try’s 97-year-old labor patj 
riarch. has left a group of 
bickering septuagenarians iq 
charge of foe PRTs once-j 
mighty labor empire. 

Although foe economy is 
booming, a fifth of Mexico’^ 
workers earn a daily minimn 
urn wage of about $3, which 
boys only a fraction of what it 
purchased 20 years ago. Ana 
as successive economic crised 
have impoverished man)| 
Mexicans, democratic 

changes in Mexico’s political 
system have aroused hopes 
for democracy in other instU 
tutions. As a result, isolate^ 
labor disputes have flared in a 
working population that has 
been extraordinarily long-j 
suffering. . 


Winds and Computer 
Delay Saturn Mission 

The Associated Press 

Florida — Dangoroasly 
strong wind and computer 
problems forced NASA to 
delay tbe launching Monday 
of its Saturn probe, Cassini, 

and Space Administration 
said ir would try again, but no 
earlier than Wednesday. 

The scheduled predawn 
liftoff of the Titan 4B rocket 
holding the Cassini spacecraft 
was pushed back first by tech- 
nical trouble, then by winds of 

100 miles an hour (160 ki-! 
lometers an hour) at altitude^ 
of more than seven miles. An 
air force meteorologist saia 
that, in the event of an ex- 
plosion, foe wind would have 
blown rocket debris down the 
Florida coasL i 

As the countdown dragged 
o°- computer problem^' 
cropped up in ground equity 
meat and foe probe itself] 
cansmg NASA to postpond 
foe launching. , 

Cassini’s destination is the 
planet Saturn. The trip will 

Sfe-SS 1 and cover 

2.2 billion miles. 



m" . ‘ . 


lisp ^ 

*yvt$ $£ohl Quashes Young Party Rebels 

* ^ ^ on S ress ^ a l^-es Behind ChancellorDespite HisPoorPolls 


JTKl k . I _ - 


U> ”.i 

* w 



By John Schmid 

_jgrir<M nanulHemUTrU , — • 

chancellor this century but also yulner- 


Helmut Kohl on Monday silenced critiS 
i&hjs own party who ihreatenedto wrS 
^how of unity at the Christian d 2S 
cats annual convention 

t.^iort Mr, Kohl delivered the tev- 
note sneerh ac M1C kc j' 

tadts onhis leadership had promised to 
Sg§ea- drama into the proceedings and 
hobble Ure chancellor’s sdready^nraa^ 

Binie-efccnon chances ne*t vrar. 

V?P^* e P art y i0 cl°seran^.Mr 
Kc*l used his bour-and-a-haif speech^ 

.&^BS ntK9ct kWnd his hid for a 

a jzf . i 7- ' — uu» oiu ror a 

‘one of the toughest m the 
history of our republic.” 

. .. * 4 We have every chance if we want it 
rfwe only stand together and fight,” Mr. 
^ £ohl , 531(5 ® a thinly veiled jab at the 
pony s youthful dissidents, known as the 
J^young wild ones.” 

’ '‘Before us. lies a hard road,” Mr. 
Kohl said. X expect each in our party to 
■take part,” r 7 

•“ The most caustic attack came from 
Klaus Escber, the 3 1-year-old leader of 
the Christian Democratic Union's youth 
wing, who by Monday morning had dis- 
tanced himself from his comments. Mr. 
JEscher conceded his “unfortunate” for- 
mulations in his urging last week that Mr. 

A Kohl step down as party chairman even if 
r he won the next election. He regretted the 
reaction his remarks had stirred, he said. 

.Another dissident, Peter Mueller, 
party chairman in the state of Saarland, 
Also fell into line after complaining last 
week that the party needed ‘ ‘ a new face” 
to generate fresh ideas. 

. . Allies of Mr. Kohl played down the 
latest rift, which follows months of party 
infighting. The feud amounted to “polit- 
ical family matters, dealt with in a clear 
bat friendly manner,” in the words of the 

The. newsmagazine Der Spiegfcl this 
week co mplained that Mr. Kohl's recent . 
performances . ip Parliament have bean 
‘‘weak.*’ Polls continue to write off Mr.- 
Kohl's ^chances in the September 1998 
vote. A Forsa poll published Sunday 
shows that only 30 percent of Germans 
in the survey believe Mr. Kohl is the 
right man to lead Germany ih lbe current 
situation, while 56 percent oppose him. 

For that reason, the hearty ■ standing 
ovation that fallowed Mr. Kohl’s speech 
became more important than standard 
partisan boosterism. The conventionbars 
any vote on Mr. Kohl’s dedsioh six 
imratits ago to stay on- as the party's 
standard-bearer. -For the- 1,000 Leipzig 
delegates^ it was their only chance to- 
register support for Mr; Kohl's decision to 
seek re-election ar&time when he remains 
unpopular with voters and unable to push 
through much of his own legislation. 

“Helmut Kohl fe the CDU’s decisive 
tntrap card and the CDU knows that,” 
Mr. Hjinze said hfcfbie the convention, 
•ntis not polls but election results that 
cotrat,” Mr, Kohl .told the delegates, 
ref erring to. his track- record of come- 
fionj-behind victories'. 

-Making only Iddxrecf mention of .Ids 
party |s discontent,; Mr. Kohl concen- 
trated his speech' on his plans for eeo- 
nmme reforms and fee creation .of jobs 
for the 43 mflHon unemployed. He cu- 

rt his 

fee global economy and to si 
ardent drive to unify Europe with a com- 
mon currency. Overcoming the internal 
sptit left by ;unificafion will also' be a 
priority, he stfii -V . . . .V.- • . 

He also vowed to take a toughstatice 
against Germany's rising crime rates 

position Social Democrats for blocking 
tax reforms his 'party says are needed to 
revitalise fee. economy. v . - 

llatflK^nl Sljuv/Rrull 

Chancellor Kohl speaking to delegates Monday as the Christian Democrats opened their congress in Leipzig. 

party's secretary-general, Peter Hinrze. 
In an unmistakable sigr 

. Me sign that Mr. Kohl 

still commands respect within his party, 
fee leader of the “young wild ones,” 
Christian WulfF, gave the chancellor a 
ringing endorsement before the congress 
. opened. Mr. WulfF, urftil recently one of 
* JVfr. Kohl's most vocal detractors in the 
’ party, called him a “rock of stability” 
and disavowed Mr. Escher's views. 

Calls for new blood in the party's 
leadership came just os Mr. Kohl had 
been looking to the convention for a 
political boost. 

. Mr. Kohl, 67, has served as chancellor 
since 1982 and party chairman since 
-1973. making him the longest-serving 

Paris Court Stops 
Book’s Sales After 
Politicians Protest 

Agence France-Prrsse [ . 

PARIS — A Paris court, on Mon- 
day ordered the suspension of sales 
of a • book: that implicates _ two- 
former French ministers in -fee 
1994 killing of a National As-’ 
sembly deputy, Yann PiaL- * 

The court suspended sales of the 
book, “The Yann Pial Affair As- 
sassins at the Heart of Power,” 
until Oct 24, when it will rale again 
on a defamation suit brought by 
former Defense Minister Francois 
Leotard and former Urban Affairs 
Minister Jean -Claude Gonrim. 

The book alleges that two senior 
politicians ordered Mrs. Hat's 
murder. They are not identified in 
the book, but details about them 
make it clear who is being referred 
to. Mr. Leotard and -Mr. Gan din 
have denied that they had anything 
to do- wife the affair. 

The book, by two journalists, 
notably cites a senior former in- 
telligence agent as saying two 
politicians ordered Mis. Plat’s 
murder on Feb. 25, 1994, because 
fee knew too much about alleged 
sales of military land to Mafia- 
linked businessmen. 

Behind Russia’s Church Curb , a Bitter Orthodox Rift 

. By Michael R. .Gordon 

New Yort Times Service - 

signed on Sept 26 was not just to prott 
fee Russian Orthodox Church agaii 

SUZDAL,' Russia — Wife its onion- 
domed churches and imposing walled 
monastery, this town has long been a 
symbol of fee Russian Orthodox frith. 

Nestled among quiet streams and 
woodlands about 200 Jciiometers' ( 125 
miles) east of fee hustle add bustle of 
Moscow, it conveys a quiet serenity. ' 

. But fee calm is deceptive. 

Wife fee stroke of a pea, ‘President 
Boris Yeltsin has transformed Suzdal 
. into, a battleground in Russia's new re- 
ligious war. 

. The conflict pits fee Russian Orfeo- 
. dox Church, the dominant faife in-Rus- 
sia and an ally of fee Yeltsin govern- 
ment, against the breakaway Free 
Orthodox Church, which sees itself as 
the heir of Russia's religious legacy. ' 
The prize here is control of 15 
churches, which fee breakaway group, 
founded in 1 99 1 . has been painstakingly 
restoring to their former glory. 

“We have .15 churches, which fee 
Moscow Patriarchate has always 
claimed,” said Archbishop Valentin, 
head of the Free Orthodox Church. “It 
does not want fee closed and half-de- 
stroyed churches in our region. It wants 
the churches feat have been restored 
from the ruins at our expense and by fee 
hands of our believers.’ ’ 

The religious law that Mr.. Yeltsin 


rivalry from Roman Catholics, Prot- 
estants and other faiths from fee West 

It is also pan of a brewing internal 
straggle for control over Orthodox 
churches, cathedrals, seminaries and re- 
ligious schools. 

The Russian Orthodox Church under 
Patriarch Alexy II in Moscow insists 
that it simply wants to protect its spir- 
itual heritage from self-appointed cler- 

Ir has drawn support from fee Or- 
thodox Church in America, the largest 
Orthodox church of Russian origin in 
fee United States, which complains feat 
breakaway groups have gained control 
of religious property in fee' confusion 
that followed fee breakup of fee Soviet 

“They were built by Russians in the 
Russian Orthodox Church hundreds of 
years ago, not by a splinter group.” said 
Father Daniel Hubiak. Moscow repre- 
sentative of the Orthodox Church in 
America, ref exring to fee Suzdal 

But critics of the dominant Russian 
Orthodoxy insist feat its real goal is to 
stifle dissent within its ranks and to 
wrest religious property from minority 
Orthodox groups. 

Among those that feel threatened is 
the pro-Kiev faction of the Ukrainian 
Orthodox Church, which complained 

about seizure of property just days after 
was signed. The buildings 

fee new law was signed, 
at issue — a cathedral, seminary, con- 
vent and religious school — are in No- 
ginsk, east of Moscow. 

Another faction, fee Russian Ortho- 

dox Church Outside of Russia, the 

te pro- 
monarchist church based in New York, 

shares concerns about its powerful 

Hie £migr£ group broke with the 
Moscow Patriarchate in 1927 because 
of the Moscow church's cooperation 
with Stalin and others in fee kremlin 
leadership. It fears feat the religious 
activities it resumed in Russia after the 
1991 collapse of the Soviet system 
could be severely restricted and that it 
could lose parishes. 

Some Old Believers — members of a 
faction feat opposes liturgical reforms 
carried out in the 17th century and has 
maintained its traditions in Russia — 
have similar fears. They worry about 
losing out in a competition to regain 
icons, bells and other religious property 
from fee state and about losing some of 

fee property they already have. 


Even before the new law was passed, 
fee Free Orthodox Church, which has its 
headquarters here, had a church in a 
nearby town taken away, and it fears it 
may lose more. Although the church is 
small, other breakaway churches and 
human rights groups are taking note. 

Suzdal is “a classic test case,” said 

Father Victor Potapov, rector of the 
Russian Orthodox Cathedral of St John 
the Baptist in Washington, who is in fee 
frnignS church. 

During the Soviet decades, many of 
Suzdal’s churches were sorely neg- 
lected. But Soviet leaders turned fee 
town into a tourist center nonetheless, 
fee better to make hard currency and to 
demonstrate that Moscow allowed a 
modicum of religious freedom — under 
the watchful eyes of the KGB. 

The leaders of the Russian Orthodox 
Church, for their part made their peace 
wife the Communists, even as many 
individual priests and believers were 
driven underground. 

They were allowed to oversee the 
church and travel abroad in return for 
echoing fee Soviet line on religious 
“freedom” and foreign policy. 

Still, wife Russia in search of a new 
national identity. Russian Orthodoxy 
has emerged as a symbol of continuity 
wife the country's pre-Communist past. 
But which brand of Orthodoxy should 
be allowed to flourish has become a 
burning question. 

The dispute erupted abroad earlier 
this year when the Russian Orthodox 
Church persuaded Yasser Arafat, head 
of the Palestinian Authority, to evict 
expatriate Orthodox monks and nuns 
from fee only Christian church in fee 
West Bank town of Hebron and to give 
control to the Moscow' Patriarchate. 


. I m. 


4 V 

Holbtooke Talks With Turks 

ANKARA — A lf.S. mediator opened talks on Cyprus 
here Monday amid heightened tension between Turkey 
and Greece. 

The mediator, Richard Holbrooke, making his first trip 
- to Turkey since President Bill Clinton named him in June 
to be fee special envoy for Cyprus, said he came to listen 
to Ankara’s views. . 

“This is nor a negotiating trip,” Mr. Holbrooke sara 
after his meeting wife Prime Minister Mosul Yiimaz. “I 
didn't come here wife proposals. 

He added: “Nobody should be under fee impression 
kind of breakthrough is imminent.” 

feat any n.— — — — — — -o — — . 

Greek and Tuxkisft warplanes confronted each other 
over Cyprus on Sunday, just as the United States had been 
trying to persuade both sides to halt all military flints 
over the island. (A?) 

French Appeal Papon Release 

■ BORDEAUX, France — Prosecutors appealed to 

• France’s highest court Monday to reverse fee retease 
: from prison of Maurice Papon, the former Vichy official 
. who is on trial for crimes against humanity. ^ 

The families of people Mr. Papon is charg^ wife 
: sending to Nazi death camps dunng World War n were 
. outraged bv fee court’s decision Friday to allow him to 
stay out of prison during the trial and, if convicted, fee 

years- long appeals process. ... 

v* The Bordeaux prosecutors’ appeal of that decision to 

• vheCourde Cassation — the nation’s highest court will 
not be heard until fee trial is over, an official said 

The court had said fear Mr. Papon s age, 87. and jus 
health justified his release. A former police official m fee 
pro-Nazi Vichy regime, Mr. Papon is charged 1 wife ot- 

• Sering fee deportation of 1,690 Jews, including -23 
children, to Nazi death camps. 

: Arrest in Journalist’s Killing 

AMSTERDAM — An Irishman arrested here Friday 
on suspicions he was involved m fee murder 
$3t will appear in court Tuesday, the public pros- 
ecutor said. _ , - „ c nw ia V lodeoendftnt 

. ■ «i ■ ■ ■ti ■ n n I OflTtOQ 

■lowu w by ^ B - 

for UD to 20 days while fee Irish government 
extradition - <Kt ‘ um> 

Lockerbie Face-Off at Hague 

tub HAGUE — Britain faced Libya at the Int«j 
• t nf Justice on Monday and renewed ns 
Triooli hand over two men London and 

alanc over Lockerbie. SopBuffll w* yaraago. “3™* u 
j them a fair trial. , , . 

Tripoli, t— 

■■ senior legal officer, proposed 
Lord - ^ impartial observers. In- 

-a trial °° . » fee accused 
: custody, to pledged . 

Centrists Asked in Oslo 
*To Form a Government 

Agence Fmnce-Pnsse 

OSLO t- King HaraM V of Norway called Monday for the 
leader of a centrist coalition. Kjell Magne Boudevik. to form a 
new government after the Labor prime minister, Thorbjoera 
Jagland, submitted his resignation. 

Mr. Bondevik said he accepted fee king's request. 

“1 said yes, and a new government wfll nave fee par- 
liamentary basis of die Christian People's Party, fee Liberals 
and ihe Center parry,” he said as he left fee palace. 

Mr. Jagland submitted his resignation to fee king earlier in 
the day, a month after failing to win a minimum 36.9 percent 
of the votes, in fee Sept. 15 election. He had -stipulated he 
wanted at least this percentage to stay in office. ' 

. He waited until Monday to resign to enable his government 
to present fee budget for 1998. . - 

Labor remains the largest -party in the country. It won 35 
percent of the votes and 65 seats in the 165-seat Storting in fee 
September election. The centrist coalition won 26.1 percent 
and holds 42 seats in ParliameoL 

. “The autumn election result did not ghre the government a 
strong political or parliamentary foundation,” Mr. Jagland 
said in his tetter. 

• “It is fens natural that those parties feat called fbrLaborls 
resignation and a change of policy during fee election cam- 
paign take the consequences of this.andTook into forming a 
new government. I therefore allow myself to submit the 
government's resignation.” 

Mr. Jagland. who succeeded the immensely popular Gro 
Harlem Brundtland when she stepped down in October 1996 
after 10 years ar.ihe helm, was plagued by party scandals and 
failures during his year in office. 

The Labor leader since 1992, Mr. Jagland was long Mrs. 
Bnindiland's prot£g6- She timed her resignation to give Mr, 
Jagland a year to gam support and experience before the 
election. , ‘ 

•' Labor had a hard time winning support because of its tight 
spouting policy, despite oil income from North Sea fields. 

TEFAF Maastricht 
7 — is March 1988 





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t J A Sends Fire Fighters to Indonesia 

3 Cargo Planes and Crew of 60 Join International Effort 

By Brian Knowlton 

■ Inirrnational Herald Trih^n, 

^Washington — Three 'big u.s. 

canying fire-fighting 
eq Qipment left their base in Wyoming on 
Monday en route to Indonesia to join an 
international effort to fight forest fires, 
whidi the Jakarta government said were 
con tinuing to spread. ' 

The three C-I30H airplanes, attached 
to the Wyoming Air National Guard, are 
pan of a much broader U.S. effort an- 
nounced Friday to help slow the vast 
fires that have left a choking haze over 
large parts of Southeast Asia. 

The haze spread again Monday, the 
Indonesian government announced, 
with, dry weather returning to the area. In 
Singapore, the government issued a 
health alert. 

The number of suspected fires in In- 
donesia, many believed to have been set 
by landowners clearing forests, rose 
from 40 over the weekend to 62, officials 

The Stats Department, responding to 
a request from the Indonesian govern- 

ment, has marshaled a range of assist- 
ance drawing on expertise, equipment 
and supplies from nine U.S. government 

American scientists, health and en- 
vironmental specialists, and die crews of 
the fire-fighting planes will join teams 
from other countries already in place. 
Australia and Malaysia have provided 
planes, and Russia, Canada, France, Ja- 
pan, Britain and other countries have 
offered manpower, cash, planes or 

Some residents in the affected regions 
have complained that the international 
community has been slow to respond to 
the crisis. The haze not only has made 
thousands of people sick, but has also led 
to dozens of airport closings and flight 
cancellations, contributed to fatal ship 
collisions, and may have played a role in 
the Sept 26 crash of a jetliner in 
Sumatra, which killed 234 people. 

On Friday, the State Department said 
that the undersecretary of state for global 
affairs, Timothy Wirth, had met with the 
ambassadors of Indonesia. Brunei, 
Singapore, the Philippines and Thailand 

to discuss ways to combat the fires and 
alleviate their effects. 

The U.S. agencies involved in the 
effort will range from the National Aero- 
nautics and Space Administration, 
which will make satellite images avail- 
able and take samples of smoke plumes, 
to the Centers for Disease Control, 
which will study haze-related health 
problems, to die U.S. Forest Service, 
which owns the fire-fighting equipment 
on theC-l30Hs. 

Those planes drop 3,000-gallon loads 
of fire-retardant chemicals to form 
firebreaks, said David Troyanek, a 
spokesman for the Wyoming Military De- 
partment. A plane can drop its load, return 

to base to reload, and be- back over the fire 
scene in as little as 12 minutes, be said. 

Mr. Troyanek said he did not know 
where in Indonesia the planes, which 
carry a total of 60 crew members and 
support personnel, would be based. He 
said it was their first fire-fighting mis- 
sion outside the United States. 

The overall cost of the U.S. assistance 
is not yet clear, the State Department 
said Friday. 

South Korea Picks a Missile 
Built by the French, Not U.S. 


SEOUL — : In a rare rebuff to the 
1 United States, South Korea's Defense 
Ministry said Monday that it would buy 
, France ’5 Mistral short-range air-defense 

. i missiles instead of American-made 

. , “The Defense Ministry has reached a 

■ final decision to buy the French Mistral 
1 after assessing other competitors such as 

■ the U.S. Stinger and the British Star- 
/ burst," a ministry statement said. 

‘ j The French missiles will be shipped 
i - over a period of two years from early 
1998 to enhance South Korea's missile 
program, a ministry spokesman said. 

“Our decision was based on in-depth 
comparison between Mistral and other 
contenders and their operability with our 
systems,” he said 

He did not elaborate on what had 
prompted South Korea to reject the 
Stinger missiles. 

The ministry did not give die value of 
the deal, but a French industry source 
here said it involved 1,294 missiles at a 
cost of some 1.8 billion francs ($306.6 

The source described die contract, the 
third for the lightweight, portable anti- 
aircraft weapons since 1990, as “a very 
important success " for the manufacturer, 
Matra B Ae Dynamics, and for France. 

He added the contract involved tech- 
nology transfers in helping South Korea 
develop its own missile systems, and 
repeated a Defense Ministry comment 
dint delivery time, ease of training and 
cost effectiveness had all been important 
factors in the deal. 

The decision to buy the Mistrals ap- 
peared to underline Seoul’s move to 
diversify its military hardware from its 
traditional source, the United States, and 
buy weapons from Europe or Russia, 
which have lured South Korea with tech- 
nology transfers and competitive 

South Korea has been heavily reliant 
on American training, logistics and tech- 
nology since the 1950-53 Korean War. 
U.S. weapons top Seoul’s shopping list 
because of their compatibility with 
South Korean hardware and with equip- 
ment used by the 37,000 American 
troops here. (AFP.AP) 

Vietnam Arrests 
Newspaper Editor 

Canfiktl by Ow Staff From Dupascha 

. HANOI — A journalist who was 
investigating government corrup- 
tion in Vietnam has been arrested 
and charged with revealing state 
secrets, his publisher said Monday. 

Nguyen Hoang Linh, editor of 
Enterprise, a state-run business 
newspaper, was arrested last week 
by Interior Ministry investigators, 
according to government officials 
quoted by the state-controlled 
newspaper Youth. The charges 
were not detailed. . 

A representative of Enterprise's 
publisher, the Union of Cooperat- 
ives, confirmed that Mr. Linh had 
been arrested. 

Mr. Linh was charged in con- 
nection with a series of reports earli- 
er this year that explored the pur- 
chase of four speredboats from 
Ukraine by Vietnam's customs 
agency. In the series, Mr. Linh al- 
leged that the purchase of the boats 
was illegal. 

The customs agency is con- 
sidered a paramilitary organization 
and under government regulations, 
military and state security informa- 
tion is classified. (AP. Reuters) 

ROOTS: U.S. Governor Gets Hero’s Weltome in Chinese Village 

Continued from Page 1 

A villager who is distantly related to 
the governor was barely able to contain 
his glee. 

,: He is our pride and our joy," the 
relative said through an interpreter. ‘ ‘He 
may be American, but his source is here 
in China." 

Mr. Locke, whose political climb has 
become a symbol of Asian-American 
success in the United States, said he had 
always dreamed of returning to his roots 
in this farming community of 47 families 
with no running water and little contact 
with the rest of the world. 

When he arrived, Mr. Locke said, he 
was moved by the warm reception but 
also troubled by what he saw. 

“It’s amazing to think that someone 
ever lived here, in these conditions, and 
they still do,” he said. “They have no 
toilets, no running water. The gutters on 
the side of the walkways — they cleaned 
them for us today — normally they’re 

filled with garbage and human waste. ~ 
It's clear not everyone is rich and living 
in the new, wealthy China.” 

Mr. Locke's sentimental pilgrimage 
came last Saturday, the final day of an 
official trade mission to China. From a 
meeting with President Jiang Zemin to 
cocktails with James Sasser, the U.S. 
ambassador. Governor Locke was 
lauded for his achievements and his rise 
from a childhood in Seattle public hous- 
ing to chief executive of the state. 

Although he came here seeking a per- 
sonal connection, most of Mr. Locke's 
efforts for private moments failed. Hun- 
dreds of journalists, primarily from 
China and Hong Kong, mobbed the gov- 
ernor while he navigated the village's 
narrow alleyways. 

Police escorts responded aggress- 
ively, shoving reporters up against a 
brick wall and knocking down children 
who had come to welcome the gov- 
ernor. But the crush of reporters did not 
seem to bother the thousands of vil- 

Agencc France- Ptraac 

ANTI-US. PROTEST — Riot police at the TJ-S- Embassy in Sebrilsirugglirig Monday with farmers angry 
about alleged trade pressures and exports to South Korea of beef contaminated with, E. coK bacteria. 

SON: 3 Years for Bribery and Tax Evasion ; 


, Continued from. Page 1 . .. 

diet Kim Hyun ChuJ for accepting kick- 
backs: in. exchange for political bene- 
fits. ‘ : V , *. 

One company, for example, was said 
to have paid .$1.9 ‘million to Mr. Kim in 
exchange for help getting a cabled tele- 
vision license. 

The younger Mr. Kim, a 38-year-okf 
adviser to his father, did not make any 
comment, after the sentencing, but his 
lawyers said they would appeal. They 
acknowledged that be accepted money 
from business executives — more than 
$6 million — but denied that tire money, 
was in the form of bribes. 

President Kim, who has been severely 
hurt politically by the scandal, did not 
make any statement He is said' to be 
crushed by what bas happened to his son, 
with whom he is very close. 

The court also ordered Mr. Kira to pay 
a fine of $ 1.6 million, but the penalties 
could have been harsher; for the pros- 
ecution had asked last month for a seven- 
year sentence. 

But the court, while scolding Mr. Kim 
for failing in his responsibilities as the 
son of a president, said in a statement 
that there had been no premeditated at- 
tempt to evade taxes. 

“Some members of the public view 

lagers, local party officials or Mr.” 
Locke, as he and his wife, Mona, poked 
their heads out the sun roof of a stretch 

Local and state government officials, 
each wanting to claim the famous Amer- 
ican politician of Chinese descent as one 
of their own, had labored furiously to 
prepare for the visit. 

Communist Party leaders in Shuibu, 
the nearest town, installed a new indoor 
toilet in a two-room home of Mr. 
Locke’s great-uncle. They also paid for 
new electric lights, a new road from 
Shuibu to Jilong and rewiring in the local 
kindergarten, where Mr. Locke shook 
hands with 4-year-olds in bunny and 
bear masks. But no amount of prep- 
aration could prevent the near riot that 
started the minute Mr. Locke arrived 
after a four-hour hydrofoil ride from 
Hong Kong. 

At a luncheon where Mr. Locke 
feasted on garlic-sprinkled lobster, 
shark's fin soup and yellow watermelon, 

tins as a-political trial dr- a trial of public 
opinion,” said the chief judge, Sohn Ji 
YeoL “But we have adhered strictly ; to 
the Jaw. jn carrying out this, trial/* 

. -.‘The sentence, did * nor stir up much 
political debate in Seoul, partly Because 
President' Kim’s, term dads early next 
. year and he is barred by law from, run- 
' ning again. He ; has' been severely 
' weakened by the scandal, and the' nation 
is now focusing on. the campaign fd_ 
choose a new president in December. 

'' The candidareleadmg all the polls has 
been Kim Dae Jung, a long-time dis- 
sident who is regarded with honor by 
many in the government. Bnt last ' week 
the president’s governing ' New Korea 
Party abruptly charged that Kim Dae 
Jung had secretly maintained a political 
slush fund in the- bank accounts of his 
relatives. ' ( , 

The party suggested' that Kim Dae 
Jung had received almost $15 milli on 
from business tycoons in the early 
1990's and that he had illegally shuffled 
the money among bank accounts be- 
longing to his relatives. 

“As a result, state prosecutors should 
investigate this matter,” said a party 
spokesman, Lee Sa ChuL The parry also 
said that the same laws thatappdiedtp the 
president’s son should be applied toKim 
Dae Jung. 

Kim Dae Jung responded Monday by 
calling for a meeting with President Kim 



'Beijing * . 

N A %% ! .C 

Shan9 ^fe| 

v • -,li ■ 



he said lie was proud of bis immigrant 
past — his great-grandfather who 
labored on the American railroads, his” 
grandfather who worked as a house boy 
in Olympia,- the Washington capital, less 
than a couple kilometers from die gov-, 
eroor’s mansion, and bis father, .who . 
served in the U.S. Army in' World War II, 
and then ran a restaurant in -Seattle, 
where Mr. Locke was born. 

from busines s: Jpg weft buthever iri jahy 
rWay tl&t was cEn&iesL ' . •• 

‘ ‘As an opposition politician, I have 
. received economic help from business 
figures, but there was no money given as 
payment for a favor,” be said. “1 have 
not hidden any money whatsoever in 
bank accounts belonging to my rela- 
tives/' ' * ■ 

Much of the public seems prepared to 
believe the worst of any politician, and 
many therefore may accept the accu 7 
sations against Kim Dae Jung as cred- 
ible. . 

- But many also suspect that, the gov- 
erning party obtained -damaging, infor- 
mation about, the bank accounts from- 
.government departments; particularly’' 
the -tax and intelligence agencies; ip an 
attempt' to -use- government power to 
sw^y an election: • : 

The latest poils still show Kim Dae' 
Jung well in the -lead, and one even 
showed that he had slightly increased his. 
margin -since the accusations '.were 
made. ■■ 

KOREA: An Inflexible North and a South Focused on an Approaching Election Leave the U.S. Pessimistic 

Continued from Page 1 

lace the temporary armistice that ended the 
1*0-53 Korean War. 

Some administration officials had hoped for an 
early agreement on such measures as setting up a 
hot line among North and South Korea and the 
United States for communicating in a crisis, ex- 
changing visits by military officers and providing 
advance notice of all military maneuvers. The goal 
was to help pave the way for eventual reunification 
of the two nations. 

All four nations attended two preparatory meet- 
ings, but the process was suspended indefinitely 
after the North insisted that the negotiators agree to 
discuss the future withdrawal of U.S. military 
forces from the South, and demanded that South 
Korea and the United States first promise in writing 
to lift economic sanctions and to provide a million 
tons of food aid over the next year. 

Washington refused those conditions. But the 
United States has already sent 177.000 tons of food 

aid this year and pledged to provide more if asked 
by the United Nations World Food Program. The 
South Korean government has provided 97,000 
tons of food, and China has provided an estimated 
150.000 tons. \ 

The aid has helped alleviate famine conditions 
and, together with a modest harvest of summer 
grains and vegetables under way, should stave off 
a new crisis until next spring, several U.S. officials 
said. But the U.S. Agency for International De- 
velopment has concluded — os has the United 
Nations — that North Korea will still need to 
import as much as 2.5 million tons of grain next 
year to meet its minimal requirements. 

“The food situation right now is not so bad," 
said a senior U.S. official who returned recently 
from a visit to North Korea. But the official pre- 
dicted that there would be “wave after wave” of 
shortages because the government has tittle in- 
terest in making substantial agricultural reforms. 

Other officials also said that military analysts 
were slightly less worried for now that the North 

might heighten tensions to gain leverage, in the 
negotiations. , 

But since there are continuing military risks, 
“there is no interest,” a top official said, “any- 
where in the U.S. government, in pulling back and 
letting them implode or explode.” He added, 
however, that Washington considers a delay in the 
peace talks acceptable partly because die declining 
North Korean economy is seen as working to U.S. 
advantage — forcing the North to take economic 
reform more seriously. 

The administration's growing distance from 
President Kim's party, meanwhile, differs from the 

S isture it took in late 1995. when a senior State 
epartment official confidentially assured Mr. 
Kim’s government that the department would 
“take domestic South Korean political concerns 
into account” in deciding when to open a dip- 
lomatic office in the North Korean capital, ac- 
cording to a classified U.S. cable summarizing the 

Since then, however, U.S. officials have been 

disappointed by what they see as President Kim’s 
decision to exaggerate the significance of a 
September 1996 North Korean submarine incur- 
sion, by his embrace of alarmis t c laims emanating 
from his government’s intelligence service that the 
North was preparing for war and by his refusal to 
authorize business deals in the Nanh by. eager 
South Korean corporations. 

Officially, the Clinton administration bas main- 
tained a neutral stance in the forthcoming elec- 
tions, repeatedly rebuffing requests by both Pres- 
ident Kim’s anointed successor, Lee Hoi Chang, 
and Kim Dae Jung, the opposition candidate, to 
gain support at home by meeting with Mr. Clinton 
at the White House. . • . - J “ 

Kim Dae Jung, 73, : a longtime democracy ad- 
vocate, has urged Washington to broker a summit 
meeting between North and South Korean leaders. 

He also has promised to take the initiative to 
forge better relations with the North away from 
Washington, a move many. U.S. officials say is 
necessary to make substantial progress. 

Defense Spending . 
Up 7% in East Asia 

• LONDON — Asian countries are 
Increasing, defense spending at a 
tiinewfaen much of the world is 
cutting back, even- though China, 
foe region’s biggest power, poses no 
short-tram military threat; a study 
published Tuesday said. • 

“The Military Balance,” thean- 
. -muil- report of foe International In- 
stitute' for Strategic Studies^ said 
- defense^ Spending in East Asia in- 
creased' in real terms by about 7 
percent in: 1994-96. . 

“East Asia is foe second-largest 
regional -arms market after the 
MidffleEast;” thereport sai<L“Un- 
less.pefsistent -economic recession 
takes hold, the region looks set to 
retain this position over the coming 
years. ” 1 

Those words were written before 
recent turmoil in- Southeast Asian 
financial markets, which is expec- 
ted to slow economic growth in the 
regiofL The. survey, regarded as an 

• ‘authoritative independent reference 
work on defense, said China was 
working to modernize its strategic 

. arid- conventional weapons, paitic- 
t was a decade 
powers techno lo- 
' : (Reuters) 

Alleged Slur Mars 
r Queen’s India Visit 

■ NEW DELHI .“i .Gannons 
boomed in. salute here. Monday to 
welcome Queen -Elizabeth U of Bri- 
tain -in a visit marred by diplomatic 
misunderstanding even before it 

At issue- were reports that the 
T prfian prime minister had called 
/Britain “a third-rate power” for 
allegedly- seeking ,to mediate in the 
long-running dispute between India 
and Pakistan -over Kashmir. New 
Delhi denied the reports. 

. Thequeen, who arrived here Sun- 
day ■ - night: ' from V neighboring 
. Pakistan, was. officially welcomed 
-ip ceremonies at foe presidential 

• paJjaCet ' •. 'p. ' • . - (AP) 

TdlebanExecutes 4 
Of Its Own Fighters 

KABUL Afghanistan’s Tale- 
ban Islamic militia strung up -the 
bodies of four of its fighters ex- 
ecuted for treason at two road cross- 
ings in Kabul on Monday to serve as 
a warning to others, witnesses 

Talebauf fighters said the four 
young tbeii, apparently all in their 
20 s, had been-executed on a front 
line north of Kabul for accepting 
.bribes from the opposition com- 
mander, Ahmed Shah Masoud, and 
for lolling. their colleagues. . 

''“They are those criminal people 
Who had martyred our mujahidin in 
return for .money from -Masoud,” 
said a note hanging between two 
bodiesat opecrossing. . 

_ The identities of foe four men 
were not clear. : ‘ ‘ • • (Reuters) 



S ■ 
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1 . 1 ! 



“Oh the joy of personai space 


Revel in more person, il space than any other airline to Canada. Flying Air Canada's Executive First to 
Canada you wine and din? more- spaciously, watch your person, ii video, drift off in yoi:r sleeper seat. 

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Keep Up Nuclear Cuts 

Nearly a decade after the end of the 
Cold War. some 30,000 nuclear war- 
heads are still available for use around 
the world, each with devastating de- 
structive power. Future generations 
may someday look back at the failure 
to reduce that total more rapidly as the 
greatest blunder of the 1990s. 

More than 10,000 warheads remain 
in Russia, where nuclear security has 
eroded and underpaid scientists and 
.security guards may be tempted to 
smuggle weapons for profit to coun- 
tries Uke Iran or Libya or to criminal 
gangs or terrorists. That Moscow no 
longer has its missiles aimed at the 
United States is deceptively reassuring. 
Targets can be changed in minutes. 

Given the dangers. President Bill 
Clinton should urgently re-energize 
negotiations on drastic further reduc- 
tions in warheads, building on the sub- 
stantial achievements of bis two Re- 
publican predecessors. The treaties 
that Ronald Reagan and George Bush 
signed with Mikhail Gorbachev and 
Boris Yeltsin, even though the last of 
them has yet to be ratified by the Rus- 
sian Parliament, have cut nuclear ar- 
senals nearly in half. But since 1993 
the drive has gone out of nuclear 
weapons reduction. 

The three modest agreements 
reached by Mr. Clinton and Mr. 
Yeltsin in Helsinki last winter only 
underscore the loss of negotiating mo- 
mentum. The two sides agreed to relax 
the restrictions of a 1972 treaty lim- 
iting defensive missiles and to delay 
the deadlines for dismantling Russian 
nuclear warheads set in the 1 992 B ush- 
Y el is in treaty. They also set modest 
goals for a new round of reductions in 
negotiations not scheduled to begin 
anytime soon. 

What is needed is not the bending of 

old treaties but immediate efforts to 
negotiate new and deeper cuts. Mr. 
Clinton and Congress insist on waiting 
until Russia ratifies the 1992 treaty 
before beginning negotiations on the 
next steps. In contrast, almost imme- 
diately after the signing of the first arms 
reduction treaty, Mr. Bush and Mr. 
Yeltsin got to work on the second one. 

Washington should begin negoti- 
ations on a third treaty now, aiming for 
limits as low as 1.000 warheads on each 
side, not the 2,000 agreed at Helsinki 
Commitments to sharp additional cuts 
could speed Russian ratification of the 
1 992 treaty by sparing Moscow the cost 
of building new single-warhead mis- 
siles to conform to the 1992 limits. 

Meanwhile, Washington should 
seek agreement to move most of both 
sides' warheads off alert. Stansfield 
Turner, a former director of central 
intelligence, suggests that each side 
physically separate a large proportion 
of its nuclear warheads from the mis- 
siles that would deliver them and post 
observers at each other's storage sites. 
That would lessen the risks of acci- 
dental launch, and, in a crisis, give 
diplomats time to work. 

In Russia, where conventional 
forces are weak and anxiety is rising 
about NATO's planned eastward ex- 
pansion. politicians once again talk of 
nuclear weapons as a vital line of de- 
fense and the last vestige of Russia's 
global power. In America, both Con- 
gress and the administration talk of 
preparing to rebuild nuclear arsenals if 
Russia's Parliament fails to ratify the 
1992 treaty. The peaceful dividends 
that have come with the end of the Cold 
War may look meager in the years 
ahead if die danger of nuclear disaster 
is not more effectively contained. 


Bizarre North Korea 

Recently, North Korean officials 
suspended the work of an international 
consortium building a nuclear reactor 
in their country. The cause of the brief 
suspension: A photograph of North 
Korean dictator Kim Jong II had been 
found torn and discarded in a 
wastebasket — this in a nation in 
which even folding such a photograph 
is regarded as a desecration. Given this 
cult of personality, it should not have 
been surprising that when Kim Jong II 
assumed the title last week of general 
secretary of the Workers Party of 
Korea, thousands of his subjects were 
said io have taken to the streets in 
spasms of spontaneous celebration. 
—The bizarre ways- of isolated- North- 
Korea might be nothing but a source of 
wonder or amusement to Americans but 
for two factors. One is the simple moral 
shame of the suffering of North Korea’s 
20 million people. Tliey live in what is 
often referred to as the last Stalinist 
dictatorship (although Fidel Castro's 
seven-hour speech last week to a Cuban 
Communist Party congress reminds us 
that there is one other contender at least ). 
They are cut off from outsiders (even 
from relatives in South Korea) and from 
anything but North Korean propaganda. 
Untold thousands are starving, thanks to 
the failed agricultural and economic 
policies of the past five decades. 

In addition. North Korea, with a mil- 
lion-man army and a habit of bellicose 
rhetoric, continues to pose a threat to a 
U.S. ally, South Korea, and to U.S. 
troops based there. Hunger, economic 
collapse, political instability or military 
miscalculation could prompt the North 
Korean regime to attack. 

So the leadership succession is of 
more than academic interest. Kim II 
Sung, the nation's longtime ruler and 
self-styled “Great Leader,” died in 
1994. While it had been assumed that 
Kim Jong D, his son and appointed 
“Dear Leader,” had taken power, until 
this month he had not assumed his 
father's titles. Now he is general sec- 
retary, and Pyongyang- watchers - ex- 
pect him eventually to assume the pres- 
idency, too, establishing the first family 
dynasty in the Communist world. 

Although U.S. and South Korean 
officials have expressed hope that Kim 
Jong Ii now would lead his nation on a 
more conciliatory path, nothing in his 
record to date gives any reason for 
optimism. Indeed, the thou 's of 
(hungry) Koreans reported!} ant- 
ing his anointing serve as a re; ,erof 
what a narrow piece of the worlu North 
Koreans have been allowed to view — 
and of what a challenge unification 
will pose, whenever it comes. 


Endangered Treasures 

The string of earthquakes that de- 
stroyed people and masterpieces in 
Italy’s Assisi region recently is a mel- 
ancholy reminder that, left to them- 
selves, significant monuments to past 
artistic effort and achievement mostly 
deteriorate or get knocked down — 
whether due to destructive forces such 
as wars and earthquakes or modem 
threats such as pollution. What sur- 
vives may seem gorgeous or immune 
to the passage of time, but that survival 
is generally the exception. 

The Assisi basilica, a beloved pil- 
grimage site associated with St. Fran- 
cis. ceased to be such an exception 
when quakes punched the area three 
limes starting in late September, crack- 
ing the structure, then bringing it partly 
down and shanering a series of 13th- 
century frescoes. 

The quakes' aftermath spread havoc 
through the area and kept people from 
their homes, although nothing has 
matched the violence of the second 
quake, which killed two officials and 
two Franciscan friars who had been 
inspecting die damage that the first 
quake caused to the basilica. Eventually 
authorities explained that at least some 

of the frescoes were gone for good 
Although not as awash in ancient 
things and structures as Europeans, 
Americans have the same difficulty fo- 
cusing on the notion that their heritage 
sometimes can crumble. Preservation is 
always an uphill campaign. The library 
of Congress needed years to muster 
support for its initiative to preserve texts 

E rutted on aging paper: film preservers 
ave had similar difficulties. And of 
course no degree of sensitivity to cul- 
tural heritage, or appreciation of it, can 
guarantee that it will beat the odds and 
survive. Just ask the protectors of the 
lovingly preserved historic neighbor- 
hood architecture of Charleston. South 
Carolina, which was battered by a hur- 
ricane a few years back. 

It is easy to fall into thinking of 
history and the historical record as set. 
Finished things over which to wage 
scholarly or political arguments. But 
just as things always ore being found 
and added to the historical record and 
heritage, it is equally and sadly true that 
portions of that heritage also are being 
lost and taken away. Umbria's troubles 
ore a reminder of that sad fact. 


i W ivTO&itnirtu.**# • | 




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Along With the Euro, 

3 >*! 

i i* 

P ARIS — The maricets are justified 
in believing that European mon- 
etary union will come into force on 
schedule on Jan. 1, 1999. 

At their recent meeting in Weimar, 
Helmut Kohl and the two French lead- 
ers, Jacques Chirac and Lionel Jospin, 
solemnly pledged to respect tbat date. 
Since the German and French econo- 
mies are in an obvious situation of 
convergence with the necessary cri- 
teria, adoption of the European cur- 
rency can be considered a certainty. 

The debate on the criteria of con- 
vergence has been helpful in emphas- 
izing the absolute necessity of sound 
public finances. We all must support 
the efforts and honor the sacrifices 
achieved to this end. But this debate, 
which occasionally drifted into child- 
ish minutiae, diverted attention from 
more fundamental issues. 

- What is at stake is not only adopting 
the euro but also making it a success. It 
can be done by building a stable cur- 
rency, well received by the people and 
the businesses concerned, that is ir- 
revocably the only currency of the 
member states of monetary union. 

To make this work, it is essential to 
reassure German opinion. The German 
people have been bankrupted twice in 
this century by monetary upheavals, at 
the end of World War £ and then again 
after World War EL Germans’ con- 
fidence has been built on the remark- 
able strength of the Deutsche mark. 
Consequently, they can be asked to 
exchange it only against a currency that 
offers the same guarantee of strength. 

By Valery Giscard tPEstaing and Helmut Schmidt 

Thanks to die legal and political 
independence of the European central 
bank. German public opinion should be 
assured that such strength will indeed 
be achieved. 

Together the French and the German 
GNPs account for a strong majority of 
the monetary union’s GNP, or around 
60 percent. At this writing, the inflation 
rate and the long-term interest rates are 
lower in France than in Germany. The 
conditions of monetary stability are 
therefore met. 

The objections raised by France 
about the “stability pact” have been 
inopportune in die sense that they led 
Ge rman public opinion to question 
French resolve for irrevocable com- 
mitment to monetary stability. Hence- 
forth. we believe it would be useful for 
the German and French leaders to 
adopt a consistent, mutual commitment 
to the stability of the euro. 

Past devaluations and revaluations 
have been important means of adjust- 
ment and correction of the differences 
between European states. Such means 
will disappear with the adoption of the 
single currency. In the absence of 
modifications of exchange rates, ad- 
justments will tiien take the shape of 
economic and social tensions, dislo- 
cations. movements of people and dif- 
ferent unemployment rates. 

Obviously, these tensions will have 
to be kept within bearable limits. In 
choosing the participating states, ac- 
ceptance should thns be based not only 

on the formal respect of arithmetical 
criteria but also on the will and ability of 
partici pating states topursue economic 
and social policies similar enough to 
avoid the emergence of tensions that 
could shatter die whole system. 

On the other hand, common mon- 
etary policies and the single currency 
will automatically lead to greater eco- 
nomic integration and less divergence 
in business cycles. 

In the longer run, success of the single 

currency will depend on further political 
progress. Without such improvement, 
changes of governments, always pos- 
sible in one or the other state, could 
challenge the solidity of die union. 

The European central bank must 
clearly be independent. We have as- 
serted that from the beginning. But this 
does not mean that it may be cutoff from 
any economic and social surroundings. 
There is a difference receiving orders 
from governments and explaining rea- 
sons and the fundamentals of the central 
bank’s monetary choices. 

The example of the United States is 
worth noting here. The Federal Reserve 
System is independent, bat it is neither 
isolated nor mute. The statutes of the 
European central bank provide that its 
president and vice president shall have 
the authority and skill to mobilize con- 
sensus among the relevant constitu- 
encies around monetary policy. 

The form of “further political pro- 
gress’'* in the European integration pro- 
cess has yet to be decided upon. One 

could have expected it from the Am- 
sterdam treaty, but the participants 
were not able to agree on reforms. 

One must never forget that monetary 
union, which the two of us were the 
first to propose more than a decade ago, 
is ultimately a political project. It aims 
to give a new impulse to the historic 
movement toward union of the Euro- 
pean states. Monetary union is a fed- 
erative project that needs to be ac- 
companied and followed by other 
steps. It was never meant to remain an 
isolated islet in the midst of the whirl- 
wind of national interests. 

Additional steps beyond those 
already agreed upon by the member 
states of the European Union can most 
efficiently be discussed among those 
states who have decided to fully play 
the game of monetary union. 

That is why we advise that the Ger- 
man and French leaders rake the ini- 
tiative in convening a conference of the 
member states of monetary union, in- 
cluding the president of the European 
Commission, as soon as the list of 
participants has been drawn up, to de- 
cide what political steps will have to be 
agreed upon to accompany the launch- 
ing of the single European currency. 

Mr. Giscard (TEstainji. the farmer 
French president, and Mr. Schmidt, the 
former Wear German chancellor, are 
co-chairmen of the Committee for the 
j Monetary Union of Europe. They con- 
tributed' this comment to the Global 
Viewpoint service of the Los Angeles 
Times Syndicate. 

Monetary Union Has Always Been Mainly About Politics 

N EW YORK — Here is 
some surprising news: 
The Italian government fell 
last week. No. honestly, it is 
surprising. The administration 
of Prime Minister Romano 
Prodi had brought what 
seemed like an almost Ger- 
manic stability to Italy. Ger- 
manic rectitude, too; with an 
inflation rate of less than 2 
percent and a budget deficit 
forecast to be just 3 percent in 
1997, Italy had done as good a 
job as any other country at for- 
cing its economy into the 
straitjacket mandated by the 
Maastricht treaty for those 
who want to be in the first 
wave of monetary union. 

Mr. Prodi’s government fell 
because the unreconstructed 
Refounded Communists could 
not accept the latest round of 
budget austerity. Cue for the 
usual reaction. Maastricht im- 
posed deflationary economic 
policies on nations that we re in 

By Michael Elliott 

near recession, and rtemarirWI 
that governments reduce the 
entitlements to which Euro- 
peans had become accus- 
tomed. This was politically un- 
sustainable. Sooner or later, 
electorates would rebel and 
EMU would be added to the 
list of initiatives that never 
came to fruition. Mr. Prodi’s 
fall, on this analysis, is the first 
breach in the dike. 

That is what I would have 
said in 1996. Not now. It is 
unlikely that last week's events 
in Italy add up to anything of 
significance. Any conceivable 
successor government will be 
just as firmly committed to the 
Maastricht criteria. 

The bigger indication of the 
current European mind-set 
came on the same day that Mr. 
Prodi fell, when the Bundes- 

and Danish central banks 
marched in lockstep behind it. 
That was the clearest possible 
signal that European institu- 
tions intend EMU to proceed 
as planned in 1999, with an 
independent central bank set- 
ting interest rates. 

5 economic policy were 
made solely on economic cri- 
teria, the rate increases would 
have made no sense. Or at least 
they would not have made 
sense far everyone. You can 
just about make a case that 
German data on prices and 
growth suggest that it was time 
for the Bundesbank to end its 
long cheap-money policy and 
nip nascent inflation in the bud. 
But you would have to be aw- 
fully optimistic to believe that 
French recovery is so firmly 
based that more expensive 

irrelevant to the case. Everyone 
accepts that a single currency 
will reduce the transaction costs 
of doing business in Europe and 
increase true cross-border com- 
petition. But EMU has always 
been principally about politics, 
about finding a way to bind 
Europeans closer together until 
something like a United States 
of Europe comes into being. 

In die late 1980s EMU's ar- 
chitects made an implicit bet 
Their gamble was that al- 
though electorates might not 
much like giving up their na- 
tional currencies, they disliked 
more the prospect of a Europe 
that was not becoming inte- 
grated, politically as well as 

and Brussels that, in the wake 
of EMU , corporate- tax policies 
will have to be harmonized so 
that all countries compete for 
inward investment on a level 
playing field. The commission 
in Brussels has adopted a 
Europew idc employment pol- 
icy. with the details of imple- 
mentation left to individual EU 
states. It flies in the face of 
everything known about the 
EU’s history to think that mon- 
etaiy union will be the end of 
the line and that no further 
political integration is likely. 

What form such integration 
might take, what areas it en- 
compasses, how electorates re- 
act — all this is up for grabs. 

economically. So far they have The key thing is to appreciate 
won the bet handsomely. Bar- that when EMU 
ring some- thing astonishing in 
German politics in 1998, forget 
grumbles and opinion polls; 

EMU is going to happen. 

And .what . then? Already. This has been adapted fromq_ 

happens, the 
debate over the future political 
shape of Europe will not have 
ended. It will have begun. 

bank raised interest rates —— credit is .necessary right now. . . 

and the French, Dutch, Belgian Such doubts, however^ are — ihere aremuttering&fromParik— lunger-article in Newsweek. 

■ ; 1 ! ’ i 


An Opportunity for Iran, and Necessary Pain for Some Others 

French oil company Total, 
the Russian company Gazprom 
and die Malaysian company Pet- 
rocas recently signed a $2 billion 
contract with Iran to explore its 
South Pars offshore gas field. The 
deal, strongly endorsed by the 
French, Malaysian and Russian 
governments, is a direct chal- 
lenge to the U.S. law that orders 
sanctions on any companies that 
do big energy business with Iran. 
Here is my guess at what 
Madeleine Albright and Bill 
Clinton are saying to each other. 

Clinton: “What a mess. 
France. Russia and Malaysia all 
together in one deal to stick a 
finger in ray eye. Jacques Chirac 
just won't forgive me for not 
giving France that southern com- 
mand of NATO, and he's using 
this to get his revenge. Jacques 

By Thomas L. Friedman 

Chirac — that guy is the Janet 
Reno of diplomacy. With allies 
like him, who needs enemies?” 

Albright “Sure, what does 
France care? Iranian terrorists 
aren't attacking their troops in 
Saudi Arabia. They don’t 
threaten Russians or Malaysi- 
ans. What I'd really love to do is 
sell Iran some long-range mis- 
siles with the targeting already 
programmed to hit Paris, Mos- 
cow and Kuala Lumpur. Then 
we could say to ol' Jacques: 
‘Hey. Jacques, it's just busi- 
ness, you know, nothing per- 
sonal We’re just crying to make 
a few bucks, and by the way, 
we're still out of Iran's missile 
range and you’re not anymore. 
But we’ll hold your coat while 
you do something about it’ ” 

Clinton: “That would make 
my day. But we can't So what 
do we do? If we impose the 
sanctions on these oil compa- 
nies, their governments will just 
sanction our companies, and 
we’ U be in a trade war. But if we 
waive the sanctions, A1 D ’Am- 
ato will scream that' we’re 
wimps. On top of that, Mobil 
and Conoco, which I barred 
from doing business in Iran, are 
going to demand whatever we 
give the French or Russian oil 

Albright: “Let’s face it, our 
Iran policy is coming apart We 
need an adjustment Here's 
what I’m thinking 

“First, we have to impose 
our sanctions on Total. Gaz- 
prom and Petronas, even 

Time for Compromise in Burma 

R ANGOON — Recent de- 
velopments show tbat 
there may be room for com- 
promise in Burma's long 
political stalemate. Two 
events suggest that the time is 
right for a pragmatic solution. 

The military government 
offered an olive branch by 
proposing a meeting with 
Aung Schwe, chairman of the 
National League for Demo- 
cracy, the opposition party 
that won the 1990 elections by 
a landslide but was not al- 
lowed to take power. (The in- 
vitation was refused because 
Nobel Laureate Daw Aung 
San Suu Kyi, general secre- 
tary of the league, was not 
invited to the meeting.) 

Second, the league was al- 
lowed by the government to 
hold the congress commem- 
orating the anniversary of its 
founding without major inter- 
ference, something that has not 
happened in several years. In 
mm. Daw Aung San Suu Kyi 
publicly thanked die govern- 
ment for allowing the meeting 
and reiterated her promise that 
she will never seek revenge 
against the military. 

The downturn in Burma’s 
economy has played a signif- 
icant role in creating a new 
atmosphere of opportunity for 
the country. Economic growth 
is expected to slow to less than 
5 percent this year and next, 
while inflation is running at 

By James Finch 

about 27 percent. There has 
been an alarming drop in for- 
eign exchange reserves to 
about SI 83 million, from 
S663 million a year ago. Ex- 
ports have fallen 15 percent 
and imports have risen nearly 
7 percent in the same period. 

The military government 
has shown some flexibility. 
The league is reluctant to 
compromise, however, for 
fear that direct talks with the 
government would result in a 
split in the league’s leader- 
ship. Moreover, the league’s 
broad base of support in die 
country is dependent on eco- 
nomic hardship. 

The government and the 
league can survive a long 
standoff, especially if they see 
it as the only means of self- 
preservation. But vital foreign 
investment will not come in 
the amounts required and to 
the needy sectors until real 
stability cranes. ■ Ordinary 
Burmese will be the losers. 

It is doubtful that either side 
will of its own accord get ne- 
gotiations oh a settlement go- 
ing. Neutral countries, espe- 
cially those of the Association 
of South East Asian Nations, 
should use their influence to 
nudge the parties to the table. A 
program should be proposed 
providing a foster track to re- 

form, without revenge or re- 
prisal against any party. 

Equally necessary will be 
commitments by both sides to 
respect the popular will but 
leave the armed forces intact 
and taking orders from the 
chief executive of an elected 

Any elected leader of 
Burma will need the military. 
Armed ethnic minority groups 
in a number of areas seek In- 
dependence by force. The re- 
sult could be chaos and na- 
tional division. Heavily armed 
drag lards ply their trade in 
some of the ethnic areas. 
Without a trained, cohesive 
military, such problems can- 
not be effectively controlled 
in the future. 

An impartial foreign medi- 
ator is needed. Candidates 
should include officials or rep- 
resentatives of countries or 
nongovernmental organiza- 
tions that have sought to retain 
good relations with both sides. 

A compromise political 
solution would require con- 
cessions from both the 
ernment and the league, 
would have to give up 
something, but the people of 
Burma would be the victors. 

The writer, managing part- 
ner in an international law 
office in Rangoon, contrib- 
uted this comment to the In- 
ternational Herald Tribune. 

though none of them has much 
business in the United States to 
sanction. They have to feel our 
pain. We would have no cred- 
ibility if we didn't 

“But we also won’t have any 
credibility if we don’t test 
whether this new president of 
Iran, Mohammed Khatami, who 
was elected by a landslide pre- 
cisely because the Iranian public 
thought he would be a moderate, 
can forge a different relationship 
with us. ■ Some people say 
Khatami is just a puppet, and the 
bad guys are still in charge. 
Some say he’s for real. 

“Let’s find oul Let’s sanc- 
tion the oil companies but an- 
nounce at the same time that we 
will review the sanctions in six 
months. We’ll watch to see if 
there is any change in Iran’s 
hostile behavior. Ifthere is, we 
will consider waiving the sanc- 
tions. This way we give the 
Europeans, Iran and the oil 
companies an incentive to show 
that Iran is chan ging , and we 
also show we are serious about 
responding to change.” 

Clinton: “Do you think the 
Iranians saw the signal you sent 

Albright “The U.S. press 
missed it, but “ the Iranians 
won’t When the State Depart- 
ment issued its list Wednesday 
of ‘foreign terrorist organiza- 
tions' that Americans cannot 
support, you can bet the first 

thin® the Iranians did was look 
for their own groups. Imagine 
their surprise when they saw 
that I also put on the list the 
Iraqi-based anti-Iranian terror- 
ist group Mujahidin Khalq. 

“The Iranians will get the 
point We’ve just made it illegal 
for Americans to support die 1 
Mujahidin — a group dedicated 
to overthrowing the Iranian 
government. We also approved 
that gas pipeline from Turk- 
menistan to Turkey, via Iran. 
Those are enough signals from 
us. It’s time for Tehran to send 
some back.” 

Clinton: “Look, I'm dubious 
about Khatami's prospects. I 
fear that Iran is like the Soviet 
Unioa — a totalitarian system 
that can't be reformed. It either 
stays as it is or crumbles. I also 
fear that even if the so-called 
moderates in Iran do respond, 
the extremists will kill some 
Americans just to prevent any 

“Still, it’s worth a try. With a 
normal relationship with Iran 
we could do a lot: counterbal- 
ance Russia and China’s influ- 
ence in Central Asia, help Israel 
and be much more effective at 
isolating Iraq. So we might as 
well use this mess with France 
and the oil companies to test 

“Hey. when you’ve got lem- 
ons. make lemonade.” 

The New York Tunes. 



1897: Tiny Vessel 

NEW YORK — Captain Wil- 
liam Oldham, of Nottingham, 
has, according to the Daih 
News, a nnounced his intention of 
crossing theAd antic alone in the 
tiniest craft in which the voyage 
has ever been undertaken. The 

little vessel, which has been built 
of steel, is only 8ft 3in. long 
with a depth of 3ft 6in. Should 
the weather become stormy, the 
captain is able to close himself in 
and render tiie small space which 
does duly as a cabin absolutely 
wind and water tight. 

1922; Russians Exiled 

BERLIN — Many Russian in- 
tellectuals are being exiled to the 

wilds of Siberia, according to 
the members of a party of Rus- 
sians who have aimed in Berlin 
after deportation by order of the 
Soviets. “We have violated no 
laws,” said Professor Sorokin, 
“but in our teachings we have 

aired questions which we con- 
sidered of scientific importance. 
Our comprehension of these 
questions is contrary to that of 
the Soviet reoresentatives. This 

difference of op inio n has led to 
banishment in mass.” 

1947: Funeral Protest 

ROME — The funeral of the 
Christian Democratic party 
worker who was stabbed after 
refusing to say “Long live com- 
munism'’ was convened into 
one of Italy’s greatest recent 
anti -Communist demonstra- 
tions. Scores of thousands lined 
the route of the procession in 
response to open invitations pos- 
ted on walls throughout Rome. 
Otte of the Catholic posters 
urged mourners to put hatted out 
of their hearts. “But let the en- 
emies of our civilization know 
that courageous men will always 
rise up to give even their lives to 
defend our civilization against 
its negators.” 





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)From the Galaxy’s Heart, 
^ Light on Ourselves 

By Lawrence M. Krauss 

C* Telescope LenJ^K “rf 0 ™??™ 


ade news' last week when 

i ^ 'l uuvtuHuav 

about dot past and our future. They 

found in the heavens a herem w S? 133515 of most of *** world’s 
unobserved star burning J? religions, as weU as the foundation 
brightness of iOniiIliontunsR.2 .Li? 0 ” 1 ^usings like 

^surprise di^M ^epathy. 

snore than put a neweiam on £ 9 ™ develo P raent of stremger 

asm^nomer^nw^ S * e techuotogy 

i Some astronomers had ^ ^es these same sentiments and 

dieted that siara this lar£f w<£5 P "w£?12 l , .W f DO ? ng '. 
not be stable. By conSL^i to 

uieory and oihers, the institme’s 
discovery reminded us how new 
technology can help us alter both 
dur view of the heavens and, more 
important, our understanding of 
, our origin and existence. 

' ' . We have always had better 
Views of many far-off galaxies 

: There is no evidence 
: that the mysteries 
; are. ending. A new 
; inexplicable star 
; exists amid the dust 
! today . Who knows 
| what new 
; technologies will 
\ reveal tomorrow? 

than of our own galactic center, 
where the new star was dis- 
covered. Why? Because much of 
our own galaxy is obscured by 
dust. But the infrared camera 
aboard the Hubble Telescope can 
scan the dust-filled center unob- 
$cured, thus allowing us to ex- 
amine our own galaxy. 

.' Mammoth stars evolve much 
more quickly than the sun. Their 
lifetime can be measured in mil- 
lions. not billions, of years. Yet 
they have been vital to our ex- 
istence. Every atom inside each of 
Qur bodies originated in the fiery 
core of earlier generations of such 
stars. They created the heavy ele- 
ments that would coalesce in a dust 
cloud around the sun, which would 
in turn collapse to form the Earth. 

; To be able to observe such a 
short-lived giant long before its 
untimely demise is remarkable. 

; Discoveries like these are why 
we sweep our telescopes through 
foe cosmos — - because we want to 
leant more about ourselves. 

The heavens have historically 
been thought of as holding and 

tify new technologies because 
they will provide such things as 
easier access to information, less 
expenditure of enezgy or more 
food, foe aspect of new techno- 
logy that I believe in the long ran 
may most enhance foe quality of 
our lives has nothing to do with 
building a better toaster. 

Each time technology allows us 
to see further into foe invisible 
universe, by “seeing” a new star 
that shouldn’t exist, or observing 
the workings of a newly dis- 
covered gene, we are forever al- 
tering our worldview. 

Ultimately technology, like art 
and music, induces changes in foe 
way we view ourselves. In this 
way, foe most significant impact 
of modem technology may be cul- 
tural. not material. 

The hidden universe has 
beckoned us for two millennia, first 
through myth and now through sci- 
ence. As foe Hubble discovery of 
yet another mysterious object in foe 
darkness makes clear, science and 
technology together offer us hope 
from which we shape our cultural 

These is no evidence that foe 
mysteries are ending. A new in- 
explicable star exists amid the dust 
today. Who knows what new tech- 
nologies will reveal tomorrow? 

The writer, chairman of the 
physics department at Case West- 
ern Reserve University, is the au- 
thor, most recently, of "Beyond 
Star Trek: Physics From Alien In- 
vasions to the End of Time." He 
contributed this comment to The 
New York Times. 

Letters intended for publica- 
tion should be addressed “Letters 
to the Editor " and conuun the 
writer's signature, name and full 
address. Letters should be brief 
ondare subject to editing. We can- 
not be responsible for the return of 
unsolicited manuscripts. 


A Catholic Confession 

Regarding the report d ‘ French 
Church Corf esses to ‘Error Over 
Holocaust" (Oct. J): 

The Roman Catholic Church in 
France has taken a major step to- 
ward healing foe wounds between 
Christians and Jews. As a con- 
cerned Christian, I have long be- 
lieved that the silence of foe vari- 
ous Christian denominations 
during the Nazi period led to a 
general discrediting of Christian- 
ity among its adherents. Until it 
admits and comes to terms with 
foe past, foe Christian church can- 
not regain the spiritual health 
needed for a renewal of faith 
among the youth of foe world. 


Porto, Portugal. 

1 wonder whether foe hierarchy 
of the Catholic Church in France 
acted according to the letter and 
spirit of the sacrament of penance 
when they asked for pardon and 
expressed repentance for foe 
church's silence and indifference 
in foe face of foe persecution of 
French Jews from 1940 to 1945. 
Would their repentance have been 
more convincing had they done 
some act of penance? They might 
themselves have fasted for 24 or 48 
hours, or they might have 
summoned all Catholics, or aQ 
French citizens, to join them in 
such a fast, contributing foe money 

thus saved on food to a nonsec- 
tarian fund to encourage and help 
those who refuse in the future to be 
silent and indifferent in the face of 
crimes againsr humanity. 


Cb£rence, France. 

Words of repentance are not 
enough. Deeds of repentance are 
needed. The onus on the Catholic 
Church is overwhelming, and if it 
is genuine in its sorrow and re- 
grets its past persecution of foe 
Jews, then it should embrace in its 
teachings, catechisms and prayers 
an unequivocal admission of foe 
church’s guilt and the condem- 
nation of anti-Semitism as a 
crime. This, in the long run, could 
help turn the tide of foe longest 
hatred in history. Until then, it 
could happen again. 



As a survivor of Auschwitz and 
Bergen-Belsen. I was deeply 
moved by Archbishop Olivier de 
Betranger's forthright confession 
of foe French Catholic Church’s 
silent acquiescence in the depor- 
tation of French Jews. Perhaps 
Pope John Paul EL, who praised foe 
French bishops for their cour- 
ageous act, could now end foe 
Vatican’s silence on the “mur- 
dering priests” of Slovakia who 
ran foe wartime Nazi puppet re- 
gime and were directly respon- 

Trout Fishing in Bhutan 
(Bait Up With a Peerage) 

By Suxxanda K. Datta-Ray 

sible for the deportation of 56,000 
men, women and children, includ- 
ing ray entire family. I was 1 1 at 
foe time and foe only one of 60 
members of my family to return. 



Partition Is No Answer 

Regarding “Since Dayton Is 
Doomed, Get On With the Par- 
tition of Bosnia” ( Opinion , Oct. Si 
by John Mearsheimer: 

To partition Bosnia and launch 
an exercise of social engineering 
with the transfer of thousands of 
people from one area to another 
would only make the situation 
worse. In fact it would condone, 
even copy, foe policy of ethnic 
cleansing instigated by Serbian and 
Croatian leaders. Let us not forget 
that a similar exercise in Turkey 
and Greece in the early pan of foe 
century did little to reduce Turk- 
Greek hostilities. The only way to 
prevent war in Bosnia is a forceful 
implementation of foe Dayton 
peace accords. All Bosnians — 
Muslim. Croat and Serb — should 
have no doubt that their right to 
-return home and live in peace and 
security will not be endangered by 
a bunch of local thugs. The in- 
ternational community may have 
to give this guarantee for some 
years to come. 



T himphu, Bhutan — with 

their red bands and black 
spots, rainbow trout are dressy 
snobs. Lay down your tackle, and 
hold out Debrett's peerage, that 
Bible of foe socially ambitious, 
and foe fish will be jumping out of 
foe water for your attention. 
Dangle an honest rod and line, and 
they" will nun imperious tail and 
stalk — 1 mean swim — away. 

Recently. 1 heard someone on 
foe BBC explode in outrage be- 
cause a trout had foe temerity to 
bite his hook when he wanted 


carp. Of course, he released foe 
impertinent fish and flung it back 
into the water. Blessed, blessed 
man, 1 thought, to be so favored. 

My bitter experience during a 
recent fishing holiday in Bhutan, 
foe Himalayan kingdom wedged 
between India and Tibet, has left 
me with a jaundiced view of pis- 
cine psychology. Fish after fish 
snubbed me as I braved wind and 
weather to cast a line; they queued 
up instead to make foe acquaint- 
ance of my son. Deep, prancing 
about 20 feet downstream. 

We were in Thimphu, Bhutan’s 
capital, with Sonam, our youthful 
escort from foe eastern hills. 
Glimpsed through foe trees just 
above the river were the upturned 
red eaves of a now deserted cabin 
where I had first interviewed King 
Jigme Singye Wanchuck, Bhu- 
tan’s fourth Druk Gyalpo . or 
dragon ruler, some five years be- 
fore Deep, now 18, was bom. 

Y ears later, foe king happened to 
be driving past that very spat when 
he saw one of his aides trying to 
instruct Deep, then 10, in handling 
a rod. The monarch stopped to 
show him how to cast a line, reel it 
in and play the catch. A basketball- 
playing bachelor then. King Jigme 
was foe “compleat angler.” 

But that was not what excited 
Deep. The royal Mercedes was full 
of Coke, he told us, eyes glistening, 
for Coca-Cola was then unobtain- 
able in India. Though Deep has 
forgotten foal early lesson, 1 sus- 
pect those snobbish fish have not. 
Thanks to the king’s maternal 
idfafoer, Raja Sonam Tobgye 
jtji, Bhutan's rivets teem with 
trout British officers stocked the 
rivers of Kashmir with fish from 
Scotland, and in Ha castle, foe 
Doiji seat are displayed foe two 

earthenware jars in which relays of 
Dorji pesters bore the fingerlings 
2.000 miles along foe Himalayas to 
Bhutan. I have not paid my respects 
to the trout’s ancestral receptacles. 
Perhaps they resent it. More likely, 
they recognize the less than kingly 
hand foal holds my rod. 

The rivers that Deep and I fish 
w ere die preserve of negligent roy- 
alty. Nowadays, King Jigme has to 
watch out for more sinister fishing 
in foe turbulent waters of ethnicity 
churned up by illegal uramgratioa’ 
into Bhutan from Nepal. There is 
little time to farm foe waters that 
grandpa Doiji stocked. Humbler 
Bhutanese are not permitted to fish 
here. Not many guests are so priv- 
ileged either, exclaimed foe Indian 
ambas sa dor’s wife, unquestioned 
doyenne of Thimphu's corps dip- 
lomatique, comprising her husband 
and an effervescent woman am- 
bassador from Bangladesh. 

You would think that foe trout 
would want to celebrate my rare 
fortune. With no one and nothing 
to disturb their tranquillity, they 
grow fat and lazy. They have 
nothing to do but eat, sleep and 
swim. You might expect them to 
weary of this existence and yearn 
for foe twang of the nylon line, foe 
shimmer of foe hook and flash of 
the fly, to pray to the river gods to 
send anglers to rake them up by 
the basketful. Not a bit of it. They 
are in turns coy and superior. 

My line goes taut as one more 
adventurous than foe rest nuzzles 
foe hook; then sags as the fish 
decides that taking it is beneath its 
dignity. Once, I even pulled an 
unproiestmg trout out of the wa- 
ter, but no sooner had it glimpsed 
me than it fought back furiously, 
twisted, turned and leapt into foe 
river with a spectacular splash. 

“It often happens!” Sonam con- 
soled. But I am sure it would not 
have if King Jigme had wielded the 
rod. The trout would then have 
bowed in gratitude and lain sub- 
missively at foe royal feet Deep had 
fared better than me, not because of 
his angling skill, but because the fish 
sniffed foe hand that had taught him 
all those years ago. As I said foe 
rainbow trout of Bhutan are snobs. 

The writer.former editor of The 
Statesman (New Delhi), is now an 
editorial consultant with The 
Straits Times (Singapore). He 
contributed this tale to the In- 
ternational Herald Tribune. 

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Victoria falls 

PAGE 10 




CONGO: Mobutu May Be Long Gone, but Where Rebellion Began the Fighting Goes On 

Continued from Page 1 

Mr. Kabila's revolt a year ago after 
Marshal Mobutu’s government threat- 
ened to expel Tutsi who had lived for 
centuries in eastern Zaire. As the re- 
bellion grew and gathered other allies, 
Rwanda’s Tutsi-dominated government 
stepped in to arm and back the rebels. 

For the Rwandan government, Mr. 
Kabila’s rebellion provided a chance to 
end the simmering guerrilla war in its 
western half by dosing down Hutu 
refugee camps across the border. In the 
camps, tens of thousands of Hum mi- 
litiamen and soldiers of Rwanda's 
former Hutu-dominated government had 
been training and preparing to invade. 

To that end, several hundred 

Rwandan soldiers fought alongside Mr. 
Kabila’s army in its march across Zaire, 
toppling Marshal Mobutu in May. 

Since Mr.Kabila’s victory, Congolese 
Tutsi have become more and more dom- 
inant in local administrations and in the 
army. Resentment has grown among 
other tribes, many of whom regard the 
Tutsi as invaders from Rwanda. 

The fighting in western Rwanda has 

since Mr. Kabila took power, 
l. In the last five months at least 
4,000 people, many of them unarmed 
civilians, nave died in a guerrilla war 
between Hutu rebels ami the army of the 
current Tutsi-dominated government, 
UN officials say. 

One reason is that thousands of Hutu 
guerrillas, many of whom took part in 
massacres of Tutsi in 1994, have filtered 
back into die country and taken up arms, 
Rwandan officials and diplomats say. 

'’What's happening in Rwanda now 
is die end of the war in 1994,” said one 
diplomat ’’The Rwandan Army is win- 
ning the war, but at a terrible cost” 

The growing nature of the Rwandan 
conflict was clear last week,, when more 
than 1,000 rebels mounted a major at- 
tack on the Rwandan border town of 
Gisenyi and were driven back, into 
Congo after seven hours of fighting. 

’’Even now we still get some infilt- 
rations from some areas of Kivu.” the 
region comprising two eastern provinces 
of Congo, said Claude Dusaidi, a senior 
Rwandan defense official “When they 
are hit hard, they retreat back to the 
Congo, maybe retrain, and come back 

and so on. So we would wish die Con- 
golese to address that issue.” 

To die north in Uganda, a rebel group 
in the Ruwenzori Mountains has man- 
aged to continue a campaign of raids 
dong die border aimed at destabilizing 
President Yoweri Museveni's govern- 
ment, despite having been routed during 
Mr. Kabila's advance. 

Kn own as the Allied Democratic 
Force, the Ugandan rebel group asserts 
that Mr. Museveni is actually a Rwandan 
Tutsi who has “confiscated our moth- 
erland-” The rebels have killed nearly 
ISO people since June in attacks that 
have scared 70.000 formers off their land 
and caused food shortages. 

To die smith in Burundi, the main 
Hutu rebel organization that used to find 
a safe haven in Congo has -survived by 
shifting its bases to refugee camps in 
Tanzania. A few Burundian rebel groups 
are reported to be still operating in 
Congo, though. The rebels continue to 
direct a violent campaign against Bu- 
rundi’s Tutsi-led government 

Even in Kivu, where Mr. Kabila’s re- 
bellion began, two guerrilla movements 
have sprang up to challenge his troops. 

In the Masisi area of North Kivu, 
dozens of armed bands known collec- 
tively as the Mai-Mai militia are ter- 
rorizing Mr. Kabila's Tutsi soldiers. 

Du ring the. civil war, the Mai-Mai 
briefly joined forces with Mr. Kabila’s 
army to oast Marshal Mobutu. But in 
recent months their ranks have been 
swelled by indigenous tribesmen who 
are angry about the large number of 
Tutsi commanders and soldiers from 
Rwanda and Uganda still on duty in the 
Congo, local officials said. Since May 
they also appear to have joined forces 
with remnants of Hum rebel groups from 
Rwanda and Burundi. 

‘"The Mai-Mai are very anti-Tutsi, 
and they want the Rwandan soldiers to 
leave immediately,” said an aid worker 
in Bukavu, who spoke on condition of 

Farther south, in the Fizi area, a second 
rebel movement, drawn mostly from the 
Babende group, has been 
and ambushing Mr. Kabila’s Tutsi cadres. 
Led by a longtime rebel leader, Charles 
Simha, who was once an ally of Mr. 
Kabila, the Babende guerrillas say they 
regard the Tutsi soldiers as invaders. 


Loyalists Try 
To Halt Rebel 
Gain in Streets 
Of Brazzaville 


BRAZZAVILLE. Congo Republic — 
Forces loyal to the embattled President 
Pascal Lissouba attacked with a heli- 
copter gunship here Monday to try to 
stem advances by its forma: military 
ruler. Denis Sassou-Nguesso. 

Witnesses said that the helicopter 
fired rockets into new positions held in 
the devastated city center by General 
Sassou-Nguesso’s “Cobra” militia, 
who predict that the capital would be 
theirs within days. 

Rebel commanders say that they plan 
to press on with an advance on the in- 
ternational airport and the presidential 
palace, strategic and symbolic prizes in 
the four-month power straggle between 
Mr. Lissouba and his predecessor. 

Witnesses say the Cobras have shot 
down three of the four helicopters de- 
ployed in the capital of this oil-] 
dudng, former French colony by 
souba loyalists. 

During a general countrywide offen- 
sive since Oct. 7, the Cobra militia has 
captured the main adminis trative and 
business districts of the capital. 

Their gains in Brazzaville coincide 
with reports that Angolan troops have 
attacked Mr. Ussouba’s home area in 
the south of the country from the 
neighboring Angolan enclave of Ca- 

“It is true the Angolan Army invaded 
from Cabinda," a spokesman for Mr. 
Lissouba's army command said. “They 
were beading toward Loudima but were 
scattered by airborne attacks.” 

General Sassou-Nguesso’s side said 
earlier that they had taken the southern 
town of Loudima. 

In Luanda, the capital of Angola, Ai- 
de miro Vaz de Concicao, a spokesman 
for the President Eduardo dos Santos, 
accused Mr. Lissouba's army of attack- 
ing Angolan forces in Cabinda. 

“We are going to move on piece by 
piece,” General Sassou-Nguesso’s 
chief of staff. Colonel Yves Moutanda, 
said during a pep talk with troops 
patrolling the front lines. 

"For a long time,” he said, the Us- 
souba forces “have been here in the city 
center. Now we are dislodging them. I 
give them no more than a week.” 


A masked Hamas member wearing a death shroud with fake explosives strapped to tfae waist 
celebrating Monday at a rally in the West Bank the Oct. 1 release of Sheikh Ahmed Yassin. 

Israel Frees 9 Arabs 
As Part of Jordan Deal 

The Associated Press 

JERUSALEM — Israel released nine more Arab prisoners on 
Monday as part of a deal mad* with Jordan after a bungled Israeli 
attempt on the life of a Hamas leader in Amman. . 

The prisoners, most of them. Jordanian citizens, were flown by 
helicopter to Jordan, where they were expected to be placed in a 
Jordanian prison, an Israeli Prison Authority spokeswoman, Orit 
Messer-HareL, said. 

Mosbe FogeL spokesman for Prime Minister Benjamin Net- 
anyahu’s government, said Israel would free 50 to 60 prisoners as 
part of a swap worked out with Jordan last week. 

Last week, Mr. Netanyahu freed Sheikh Ahmed Yassin, 
founder of die militant Muslim group Hamas, and 20 other Arab 
prisoners, most of whom had Jordanian passports. 

In return for Israel's prisoner releases, Jordan has freed two 
Israeli Mossad agents involved in the Sept. 25 assassination 
attempt on Hamas political strategist, Khaled MeshaL 

Celebrating the release of Mr. Yassin, about 4,000 people 
attended a Hamas rally Monday at An Najah University mi the 
West Bank. Protesters burned the Israeli flag, and eight Hamas 
activists marched dressed as suicide bombers, wearing white 
death shrouds and belts with fake explosives. 

None of the nine Arab prisoners released Monday were Hamas 
members or were involved in attacks on Israelis, Mr. Fogel said. 

An Israeli Prison Authority list showed all except one of those 
freed were jailed on security offenses. 

Israel also decided Monday to demolish the homes of three 
Islamic militants who carried out suicide bombings in Jerusalem 
this summer. The home of a fourth assailant is to be sealed. 

10 Policemen Die 
In Attacks in Egypt 

ASSIUT, Egypt — Suspected Is- 
lamic militants attacked two police 
stations Monday in southern Egypt, 
killing 10 police officers and one 
civilian, the Interior Ministry said. 

The Minya Province attacks were 
the worst against security forces this 
year and cast more doubt on die 
government’s claims that it had 
crushed Muslim extremist groups. 

No group took immediate re- 
sponsibility for the a t t a ck . The po- 
lice in southern Egypt said the 
shootings were carried out by “ter- 
rorists,” the word they usually use 
to describe Muslim militants, (AP) 

Rival Kurds Battle 

ANKARA — Just as Turkey 
started p ulling its hoops out from 
northern Iraq, serious fighting broke 
out Monday between rival Iraqi 
Kurdish factions. 

The Kurdistan Democratic Party 
said fences of the Patriotic Union of 
Kurdistan, backed by heavy 
weapons, had launched arracks on its 
positions at three separate locations. 

A United Nations official in 
B aghdad confirmed die clashes. A 
cease-fire between the groups had 
mostly held since last October. (AP) 

Acapulco faccines 

ACAPULCO, Mexico — Health 
workers vaccinated thousands of 
residents of hurricane-devastated 
Acapulco at makeshift centos : 
Monday, hoping to halt die spread 
of diseases. 

Teams of government health 
workers set up makeshift vaccine 
centers across die stricken resort 
city and in other smaller villages 
along the coasts of Guerrero and 
Oaxaca states. Up to 400 people 
died in the flooding and chaos that 
accompanied the hurricane desig- 
nated Pauline last week. (Reuters) 

For the Record 

Chilean Indians and students 
marched Sunday in Santiago to de- 
nounce Columbus's arrival in Amer- 
ica as the start of the genocide of die 
continent’s native peoples. (Reuters) 

Algerian Islamists Urge Boycott 
Of Elections as Killing Continues 

said Monday that Muslim rebels killed 23 
civilians, including at least seven women, 
one baby and two girls, by cutting their 
throats in two attacks Last weekend. 

The newspaper Liberte also reported 
that the Algerian Army, cm a continuing 
three-week offensive against Muslim 
guerrillas near Algiers, said troops had 
killed at least 35 rebels. 

About 20 rebels killed 14 people — 
members of two families — early Sun- 
day in Souidani Boudjemaa village, 
about 30 kilometers (18 miles) south of 
Algiers, and then set their bodies ablaze. 
Liberte said, quoting survivors. 

Hours later, rebels cut the throats of 
nine civilians at a fake roadblock they 
erected Sunday near Ksar el Bonkhari, 
about 80 kilometers south of Algiers, 
Liberte said. 

Thirteen workers were wounded Sun- 
day when tbe truck they were traveling 
in ran over a mine planted on the road 
they routinely took to get to work in El 
Got in the western province of Tlemcen, 
La Tribune said. (AFP, Reuters) 

Cxytedby Cw iufff-Kin Osfut&es . ... 

BONN — The leaders of the banned 
Islamic Salvation Front called for a total 
boycott of Algeria's local elections 
scheduled for Oct 24, in a statement 
issued here Monday. 

The party's leaders said the vote 
would not help stop the violence in Al- 
geria in which hundreds of civilians have 
been killed in recent weeks in massacres 
linked to Islamic extremist groups. 

“Instead of genuine and prompt ac- 
tion toward stopping the bloodletting, 
the government is foisting elections on 
Algerians which will serve no purpose,” 
the statement said. 

The Islamic Salvation Front insists 
that “absolute priority be given to stop- 
ping the bloodshed through a global and 
just political solution within the frame- 
work of global national reconciliation.” 

The Front said its call was aimed at 
pushing die government to a shift in 
policy toward “a real solution awaited 
with impatience by Algerians.” 

An Algerian newspaper, meanwhile. 

Left Wins a Round 
In Genejoq.Cqntqn 


GENEVA — Left-i _ 
won a majority, for the first time 
since 1918, in the Geneva canton 
legislature in first-round voting 
over the weekend, according to re- 
sults published Monday. 

The narrow triumph of a leftist 
and ecologist coalition, which took 
51 out of the 100 seats in the can- 
ton’s Council of State, leaving 49 to 
center and right-wing parties, was 
hailed as historic. 

The Sunday poll, which saw a 
turnout of 39 percent, will be fol- 
lowed by further elections next 
month for the cantonal government 
and will not automatically bring the 
left to power in and aroand the 
international city. 

Analysts said the outcome of the 
successive ballots would be more 
likely to lead to a restoration here of 
Switzerland’s typical “consensus” 
style of administration, with the 
m i nis terial posts shared between 
left and right 


Trial of Basque Political Leaders 


MADRID — The leaders of the polit- 
ical wing of the Basque guerrilla group 
ETA went on trial in Spain's Supreme 
Court on Monday on charges of col- 
laborating with the separatist rebels. 

The trial began under heavy security 
with the reading of the charges against 
the 23 radical politicians who make up 
the entire leadership of tiie political party 
Hern Batasuna. 

The defendants are accused of spread- 
ing ETA propaganda daring the election 
campaign last year by broadcasting a 
videotape produced by the rebel group 
and of acting in “defense of terrorism.” 
If convicted, they each face up to eight 
years in prison. 

The politically charged case has di- 
vided Spaniards, with some calling it an 
attack on freedom of speech and others 
saying it was long overdue. 

The trial was originally set to begin 
on Oct. 6 but was delayed for a week 
after defense lawyers tried unsuccess- 
fully to have one of the three judges 

■tnrthe case removed for possible bias: 

. The police, worried by the risk of 
attacks by ETA and violent street 
demonstrations, mounted a major se- 
curity operation outside the court in cen- 
tral Madrid. ETA stands for Basque; 
Homeland and Liberty. H 

On tire eve of the trial, about 5,00G[ 
people demonstrated in the Basque city* 
of Bilbao in support of Heni Batasuna, at, 
Popular Unity in the Basque language. ”, 
Just after the demonstration, two re- 
gional police officers suffered slight, 
bums when a group of hooded youths: 
threw fire bombs. . » f 

On Saturday a car bomb exploded 
the Basque resort of San Sebastian, 
tiie venue of the world cycling 
pionships. Three Civil Guards si 
minor wounds in tiie attack, which 
police attributed to ETA. 

Herd Batasuna is considered 
political arm of ETA The guec 
have killed more than 800 people 
three-deca d e-long fight for an " 
eat Basque 

MERGERS: A European Spending Spree 

Continued from Page 1 

Fueling that big-is-better strategy is a 
stunning boom in European equities. 
Slock market indexes have surged so for 
this year by 32 percent in Paris, 41 
percent in London. 49 percent in Frank- 
run and 56 percent in Switzerland. The 
resulting paper wealth has given Euro- 
pean companies the financial muscle to 
make acquisitions. 

In the financial services industry, the 
focal point of much of the activity Mon- 
day, barriers are crumbling between sec- 
tors like banking and insurance while the 
advent of Europe's single currency 
could make national borders increas- 
ingly irrelevant. The recent spate of mer- 
gers' on Wall Street, capped by the deal 
:ast month creating Salomon Smith 



“Tbe financial services industry 
today is totally open, and there are no 
boundaries between countries,” said 
Hans Dalboig. chief executive of Nord- 
banken. The Swedish bank said it was 
merging with Merita of Finland to create 
a Scandinavian banking powerhouse, 
valued at around $10 billion, capable of 
expanding into the Baltic states. 

Besides Reed Elsevier Welters KJuwer 
and MeriiaNordbanken, as those giants 
are to be called, there were these deals: 

• BAT Industries PLC announced that 
it was in talks to sell its insurance and 
asset management businesses, which in- 
clude the U.S. insurer Fanners Group, to 
Zorich Insurance Co. Tbe (foal, estimated 
to be worth more than £20 billion, would 
create a Zurich-based financial services 
company worth around $36 billion and 
leave BAT free to focus on its remaining 
cigarette business. BAT shares surged 5S 
pence to close at 609. 

• Assicurazioni Generali SpA Italy's 
largest insurer, made a surprise bid of 55 
bilfion French francs ($9.38 billion) for 
Assurance Generates de France, that 

country’s No. 2 insurer. The deal would 
vault Generali into third place among 
European insurers, behind the German 
leader Allianz AG and AXA-UPA SA of 
France, which also has grown through 
acquisitions. Generali shares rose 1,810 
lire to close at 38,521 ($22.46) in Milan. 
AGF shares were suspended in Paris. 

• Lafarge S A the French cement and 
building materials co mp any, offered to 
buy Redland PLC ofBritain for 320 
pence a share, or £2.07 billion. Redland 
rejected die offer, but its shares surged 79 
pence, to 336.5, indicating that investors 
expect Lafarge to pursue its bid. 

• LVMH Moet Hennessy Louis Vuit- 
ton SA said it would drop its opposition to 
the merger of Guinness PLC and Grand 
Metropolitan PLC in return for a one- 
time payment of £250 million plus a 
special 1998 dividend of £250 million. 
The luxury goods company will also con- 
trol most of die global distribution of tiie 
combined company’s drinks business, a 
world leader that includes Johnnie Walk- 
er whisky and Gilbey's gin. Guinness 
shares rose 28.5 pence to dose at 605.5, 
and Grand Metropolian rose 21 to 604. 

“All of these transactions have been 
driven by a trend toward international 
cross-border consolidation within partic- 
ular industries,” said Charles Packshaw, 
head of corporate finance at Lazard Bros. 
& Co., which is advising companies in- 
volved in five of the day’s six big trans- 
actions. “I think we’ll see a continuation 
of this trend,” be told Bloomberg News. 
Lazard could make more than 5300 mil- 
lion for its role in the bids. 

The boom in activity also suggests that 
man y big European companies are mov- 

ITALY: Neo- Communists Misread Mood I 

Continued from Page 1 


10.70 , t ^Nordban ken _ ^Merita 

btenatMOB] HenUThfeoae 

than business unit restructuring to build 
value.” The firm’s research indicates 
that returns on equity are highest in 
markets like Britain, tiie United States 
and Switzerland, which have seen the 
most mergers. 

Tbe Reed Elsevier-Wolters Kluwer 
deal meanwhile highlights tbe potential 
fora small number of mega-companies to 
dominate the Internet. The growth of 
Microsoft Corp.’s Internet Explorer 4.0, 

which contains about 100 easy-access 
information windows, should str engt hen 
the publishers’ hand , Mr. Stapleton ^ id t 
as Reed Elsevier Wolters Kluwer pub- 
lications will control 14 of the windows. 

The deal will create . tiie world’s 
biggest publisher of trade magazines and 
business information, comb ining 
Wolters 's legal and tax publications with 
Reed Elsevier’s Lexis-Nexis databases 
and magazines like New Scientist 

BLAIR: Historic Handshake With Adams 

IHg DCjUUU UgfUiUmui l wu uvun rngj 

job cutbacks or recent years and looking 
to st rength ™ their position in the Con- 
tinent’s growing economic recovery. 

“The rate of work force redaction is 
slowing,” said Richard Davidson, chief 
economist at Morgan Stanley in London. 
“European companies will increasingly 
tom to mergers and acquisitions rather 

Continued from Page 1 

“If we don't seize the opportunity 
now, we may not see it again in my 
lifetime,” an official quoted Mr. Blair as 
telling Mr. Adams. 

Mr. Blair said he would use all his 
energy to achieve peace. 

"It s a very rare thing for h umanity to 
make sense of history, but that’s exactly 
what we’ve got to do,” he was quoted as 

He told Mr. Adams: “You either end 
up as victims of your history or you 
make sense of it.” 

He added, “I do believe this is one of 
tbe moments in history when things 
be moved forward." 

Officials said Mr. Blair had emerged 

from the meetings feeling very encour- 
aged and sensing a real political will to 
make progress toward ending decades of 
strife between Roman Cathol ics and 
Protestants over British rule. 

Mr. Adams himself played down the 

“Well, I have shaken hands with 
many people,” he said. 

The Sion Fein leader also stressed his 
undiluted commitment to a united Ire- 
land, a goal vehemently opposed by 
Northern Ireland's Protestant majority. 

“We want to see Irish unity, we want 
him to be the prime minister that helps 
bring dial about and, indeed, as I said to 
him,. we want him to be the last British 
prime minister with jurisdiction in Ire- 
land,” Mr. Adams said. (Reuters, AP) 

coalition, Mr. Bertmotti and his 

factory workers and radical int* „ 

are a force that still needs to be coaxed 
in to consensus. 

Part of .tbe problem has to do with 
arit hmet i c . In Italy's last national elec- 
tions, in Apnl 1996, the Democratic 
Party of the Left, headed by Massimo 
D'Alema, won 21.1 percent of. tiie vote, 
whereas the neo-Communists won 8.6 
percent — numbers that add up (o the 
constituency of Italy’s old Communist 
Party, the largest in Western Europe 
until it split in 1991. 

The residual split in the ranks of Italy’s 
left has much to do with the drama of the 
previous week, as Mr. Bectinotti, deser- 
ted in the aid even by Italy's traditionally 
Co mmun ist trade union, sought to fight 

whatbeandhis supporters describe as the 

creeping “hegemony” of a modem, 
moderate party of the left that in their 
view, ha s forsaken principles for power. 

Until now, the Refounded Commu- 
nist Party has stayed resolutely out of the 
government coalition, choosing instead 
a middle course that allowed it to lend, 
and withhold, the support of its 34 par- 
liamentary deputies as it saw fit 

The lingering clout of the neo-Com- 
munists can also be explained by Italy’s 
stubborn resistance to “bipolarism,” a 
two-party system that when it works 
nght, offers voters an alternative be- 
tween left and right, along the lines of 
Britain’s Labor and Conservative 
parties, or the Democrats and Repub- 
licans in the United Steles. Bipolarism 
has been a goal see by Italy’s new polit- 
ical elite, in tiie wake of the messy 
corruption scandals that erupted in the 
®ariy 1990s, shattering the oncc-dom- 
i n a nt Christian Democrats. 

Political reforms began with the par- 
tial shedding in 1992 of Italy’s old pro- 
portional representation voting system 
that had kept power in the bands ctt party 
teadere, letting them — rather than 

voters - — pick elected representativi 
Bat further reforms are still pending 

many analysts here fear rtiar politics 
remain at the mercy of small minority 
ies, like the Remanded Communist! 
y, that relish their outsized role. | 
In December 1994, the center-righf 
government beaded by the media mag^ 
nate, Silvio Berlusconi, was brought 
down by tiie defection of the Northern* 
League, whose leader Umberto Bossi 
now advocates outright secession for a 
large swath of northern Italy. Althongfr 
side lined by the major parties, Mr. Bossi 
remains an irksome troublemaker, 
whose parliamentary minority can g rill 
makes its voice heard on critical issues* 
But in downing the Prodi government, 
the neo-Communists found themselves 
up against a consensus in Italy, which in , 
years, has proved stronger than 
any other; an overwhelming co mmi t-, 
pent to join Europe when in 1999, it , 
launches the euro, the name of tiie pro 1 
posed common European currency, 

Claims Vary on Succe* 
Of Cameroon Election 

The Aisocimed Pn~rt 

elec tion, but the government insi 
fornout had been strong and fev< 

President Paul Biya. 

Official results from Sunday's 
totmg were not expected for two we 
Mr. Biya was expected to extend 
ps 15 yeare in office, since, the bvj 
oy the main opposition parties left 
rating little competition. 

Mr. Biya's camp aign had dnmm 
tiie West African nation's state-nm 
aia, which all but ignored his six 
ponents. Two other contenders drop 
oat just before the vote. 


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Percr Marino, the architect of Dior’s new boutique, in the central rotunda ; bow-trimmed, striped chair in the perfume boudoir, left, and serpent sandal, peacock-feather mule and satin lingerie on a clovcn-hoof stool. 

By Suzy Menkes 

International Herald Tribune 

P ARIS — The chair has an oval 
back, like all those upright, up- 
tight Louis-something seats in a 
posh French salon. 

But on its back is a striped bow like 
the apron of a perky French maid. Or its 
seat is made not of silk, but of curly 
{sheepskin. Or it sprouts Mexican raffia 
tassels. Or it is made from a Philippines 
wicker basket bought in a New York 
flea market. 

; “That cost SI. 98 — 1 don't know 1 
why I have been portrayed as a person 
who does things lavishly.*” says the 
architect Peter Marino, with his boyish, 
dll- American grin. “I want people to 
think I had fun — that would make me 
really happy.” 

■ The newly refurbished Dior boutique 
opens its doors Tuesday with a swanky 
party at which Bernadette Chirac, the 
wife of the French president, will cut a 
silken rope with the scissors that the late 
Christian Dior himself used 50 years 

But a makeover is hardly the word to 

dcs^L|^^|e^ , 

tion that the American-in-Paiis architect 
has wrought It is a triumph of wit and 
workmanship, symbolized by the at- 
tention to detail: the cloven-hoof stools; 
the moonlight-silver panther print, or 
die naughty black-lace frieze on the 
padded-silk dressing room of the linger- 
ie boudoir. 

Subtle references to the heritage of 
the house include a wickerwork mosaic 
in mother-of-pearl in the mirrored 
beauty parlor and the pleated silk cur- 
tains behind the glass vi trines of closets. 
That harks back to Christian Dior's 
original concept of making his couture 
house just like the haul-bourgeois home 
of his dear mama. 

But far from being an homage to the 
past, Marino has also let the airy light of 
modem day into die pampered luxury 
that is the quintessence of French chic. 

The Avenue Montaigne entrance not 
only has a froufrou lavender tulle dress 
by Dior's romantic designer, John Gal- 
liano, but also state -of-the art technol- 
ogy, as panels open to show film clips of 
the Dior universe. 

And from the rotunda, pathways give 
vistas onto other areas — an idea, says 
Merino, based oq the famous Etaile, the 

a, ^ f p m .■ V n'l_l 4 7 

star-burst formation of roads round Par- 
is's Arc de Triompbe. 

“Dior grew like a medieval town — it 
had been higgledy-piggledy for 50 
years, with no flow and no light,” said 
the architect, who decided to ape Hauss- 
mann’s 19th-century restructuring of 
Paris by remodeling the entire building. 

Film screens, rotundas, jokey fur- 
niture? This is Nike Town meets Dior? 
Not qnhe! The new store is done with 
the in-depth luxury that has been 
Marino's trademark in the very different 
stores that the chameleon-architect has 
done for Giorgio Armani. Donna Karan, 
Calvin Klein and Valentino. 

“It starts with the three-centimeter 
carpet — .bouncy luxury,” says Marino, 
patting its deep pile, stroking the red- 
and-white striped, ma de- in-Fran ce silk 
and pointing out the gleaming rococo 
moldings of the evening salon, filled 
with Galliano’s embroidered chinoiser- 
ie outfits. Mother-of-pearl was crushed 
into the plasterworic that Marino defines 
as “Louis XV, but using Dior 

A deep cultural and historical know- 
ledge is hidden behind the architect’s 
friendly and genial facade . It has 

YSL: The Fluidity Is in the Fabric 



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YSL's haher-top and floaty pants. 

International Herald Tribune 

P ARIS — It is nearly 40 years 
since Yves Saint Laurent took 
up his scissors as assistant to 

Pierre Berge, the designer's partner, 
announced Monday that the anniversary 
would be marked in 1998 by a series of 
events. They include an involvement in 
the soccer World Cup in France. Berge 
also said that the name of the designer 
would be engraved above the newly 
refurbished French painting section of 
the National Gallery in London, to 
which Yves Saint Laurent made a major 

How does Saint Laurent feel 40 years 
on? * ‘Those early years were marvelous 
— but I don’t think much about that 
now,” said Saint Laurent, with new 
short-cropped hair, after the mini-show 
in his salon. 

“Forty years is a long time. Do you 
wonder that I don’t want to do four big 
shows a year any more? What I wanted 
to capture in this collection was a sense 
of lightness, femininity, and to keep 
women in pants but to aim at fluidity 
wife the fabrics,” the designer said. 

With such a weight of history and 
myth leaning on his slight frame. Saint 
Laurent still managed to pull that off. 
The capsule collection he seat out on the 
opening day of the Paris spring-summer, 
season had a blow-away lightness, es- 


pecially for evening, with halter-neck 
tops breaking in a pale surf across the 
bosom above flowing chiffon pants. 

A breezy seashore feeling also gusted 
through the .day wear, which opened 
with the perennial navy pea coat, 
teamed with wide white pants, and con- 
tinued the naval theme with navy jack- 
ets piped or banded in white. 

Although a pin-striped suit offered 
the classic pleat-front cut, most of the 
pants were sailor-shaped, fitted at the 
hip and then flaring gently. Wom with 
1940s-style wedge-heeled sandals, they 
had a jaunty look. 

The other innovation was in fabric, 
with shiny woven raffia used for a 
simple black dress. The designer 
showed his unrivaled sense of color 
with a grass-green sweater wom with 
orange skirt over yellow Capri pants. 

Exoticism came in the whiff of lemon 
grass for soft: jackets and pants. That 
reinforced a message that was less about 
tailoring and more about easy pieces. 

Eric Bergere’s take on fashion is 
short, sweet and very French in its brief 
hemlines and tidy, higb-waisied tailor- 
ing. A strong part of the collection was 
soft dresses in jersey fabrics and country 
colors like moss green that had flashes of 
flesh at the side or bared backs. 

Suzy Menkes 

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brought a current commission to re- 
store Sl Patrick’s Cathedral in New 
York, a project of which he is very 
proud but refers to with his usual glee. 

For the French, Dior holds a position 
not so removed from the reverence ac- 
corded to an established church, and 
eyebrows were naturally raised when 
Bernard Arnault, Dior’s president, com- 
pounded the ignominy of choosing a 
British designer by picking an Amer- 
ican architect 

Marino admits that when he got the 
call and thought of his sisters “ogling 
Vogue’ ' in Dior’s glory days, he too was 
amazed that he should be considered. 

“Dior was an icon, and I had an 
image in my head of how it should 
look,” says Marino, who found the faux 
pillars and faded 1970s modernization a 

He praises Arnault’s vision in un- 
derstanding the need to project the 
house forward into the new millennium, 
rather than gilding its laurels. 

How does Marino work with such 
different clients? He says that he is 
“very good at interpretation” and that 
the idea is always to sit down and talk 
them through their hopes and dreams. 

Q JYeto York Times/Edited by Will Short*. 

This was easy with Armani, whose 
home Marino did before he tackled the 
stores; more difficult with Karan, who 
found it hard to articulate her idea of a 
store with a spirit and a soul. 

Marino discussed Dior's image with 
Galliano and critics will be dumbfound- 
ed to see how well this French and 
Anglo-Saxon marriage has worked — 
perhaps because Marino has an unchar- 
acteristically American sense of irony. 
(He spent formative years in his youth 
hanging out in Andy Warhol's Facto- 

T HAT chimes with Galliano's 
saucy takes on Dior. Hius the 
cocktail room contains pastel 
suits with mink trims (we are 
talking fondant-pink and primrose-yel- 
low fur here), which are set against a 
quiet, clean modernist background. And 
special objects, like shoes entwined 
with snakes or peacock feathers, get the 
isolated treatment of a rare jewel. 

And yes, there is a connection with 
Nike Town New York. For just as that 
high-tech store is created within the skin 
of an old building, Marino has worked 
the reverse nick. The bones are classical 

18th-century architecture, but that is 
fleshed out with hyper-modem rails and 
fittings that stand away from the walls, 
as though an invisible pane of glass 
separated today's Dior from its history. 

“Everything suspended, floating, 
nothing touching the wall — that's- 
modem to me.” said Marino, raising his 
eyes to the square, sunken ceiling lights. 
“And no crystal chandeliers. For any- 
one under 50 that says OLD.” 

What is the price of all this luxury? 
Dior isn't telling. But the Marino-de- 
signed Barneys on Madison Avenue 
(the one that bankrupted the business) 
cost a cool SI 50 million. 

The Dior project has been enormous, 
with the outside of the limestone-clad 
building given the same restoration treat- 
ment as die Louvre and a new coherent 
interior fashioned from whai was a war- 
ren of rooms in three separate houses. 

In the store; the visual game is one of 
contrasts, so that modem is juxtaposed 
with fantasy. 

"It is always about my reflection of 
old and new,” says Marino. “And that 
is the challenge for Galliano too. How 
do you bring rococo fantasy to modem 


By John Hm’kes. 160 pages. $ 7295. 

Reviewed by Carolyn See 

I N his last novel, “The Frog,” John 
Hawkes played around with a 
“French” voice and an antique Con- 
tinental sensibility. It was interesting to 
read as an exercise, but it had an aca- 
demic aura; you got the feeling you were 
reading to improve yourself, putting ex- 
tra literary stars in your crown. In “An 
Irish Eye,’’ ’ Hawkes uses the same meth- 
od, an “Irish” voice to tell an Irish story. 
He doesn't hold back, and it's marvelous 
fun to read — gross and low, foul and 

“An Irish Eye” is probably polit- 
ically incorrect, racist, discriminatory 
and a few other things, but it has — 
within its fable form — a ring of crazy 
truth. The narrator is Derv la- O' Shan- 
non, a foundling, but. as she quickly 
points out, “Is there an Irish girl who is 
not?” She lives in the dismal town of 
Carrie kfergus. in SL Martha’s Home for 
Foun dling Girls, close to Sl Clement’s 
Home for Old Soldiers, Sl Claire's 
Hospital and a school for “proud boys” 
— “sons of this angry land” — Si. 

Dervla is deliriously devout and dip- 
pily' optimistic. She rhapsodizes about 
Foundling Mother, who runs the place 
“usually with an infant on one or both 
hips and perspiration shining on her 
lovely face,” and about the food: “Oh, 
the glorious smells that filled our kit- 
chen and arose even from our pails of 
slops.” The 30 or so girls who live in the 
home are clothed by a seamstress in 
town “who made by hand but . . . not 
according to our needs the dark blue 
dresses that were the famili ar uniform of 
Sl Martha's,” and great boxes of grot- 
esquely mismatched shoes arrive, so 
that most of the girls, when they wear 
shoes at ail, are forced to walk with a 

The foundling borne is hell, in other 
words, but Dervla pronounces it won- 
derful. She's crazy about it. she em- 
broiders upon it, she squanders words 
on it, she turns her leaden material into 
gold, the gold of her Irish voice. 

At some point in this dank town 
where nobody gets a square meal and 
unwanted babies proliferate like dan- 
delion seeds, somebody gets the idea to 
let the foundling girls visit the old sol- 

Dervla is assigned to an amusing old 
geezer. Corporal Stark, who still wears 
his gas mask from World War I. They 
immediately strike up a romance. The 
foundlings over 10 years of age are 
more than willing to lose their status as 
good girls, but Stark tells Dervla he’ll 
have nothing physical to do with her 
until she’s 15. The plucky foundling 
feels put out; she’s only 13 now, but she 
resigns herself to the wait. 

Then the plot takes a turn. Dervla and 
her amiable geezer are out gamboling in 
the Irish countryside when an entire fox 
hunt careens by and Stark is struck in the 


head by a horse’s hoof. They are taken 
to a great manor (called the Great Man- 
or). where Dervla is immediately im- 
prisoned in the kitchen and made to 
work her fingers to the bone for the 
mysterious owners. She learns to carry 
tea trays and gets a hint of the world of 
un-foundlings: “There was cake, there 
were kippers, there was an immense 
bowl of boiled eggs soft in the middle, 
and rashers of bacon that was mainly fat 
and hence a treat for anyone trying to 
survive in our nation, native-born or 

But even in the Great Manor, the head 
housekeeper takes care of another un- 
wieldy bundle of foundlings, wretched 
little semi-infants who come in on the 
food chain somewhere beneath the cats 
and dogs. 

Soon Dervla, stricken with fever, 
finds her way to the Great Bed in the; 
master bedroom, a decaying linen mid- 
den that she shares with an energetic 
nest of mice. The manor owners are 
Anglo-Irish, of course, decayed Prot- 
estants, in almost as bad a shape as those ’ 
wretched old soldiers and foundling' 
girls. There's the obligatory Swiftian 
reference, the comparison of roast pig to ’ 
spitted baby, and more din, goo, mud, 
manure, slop and stench titan can be 
imagined, but Dervla makes a stoiy out' 
of iL It’s some story! Foundlings and. 
lard and misery and high spirits. 
Hawkes writes it with affection, and it's . 
a pleasure 10 read. 

Carolyn See reviews books regularly, 
for The Washington Post. 


By Robert Byrne 

'T'HE game between the grandmasters 
X Gregory Kaidanov of Pittsburgh 
arid Dmitri Gurevich from the fourth 
round of the United States Invitational 
Championship shows what happens 
when a player uncovers instability in a 
maybe too- adventurous defense. 

The rare defense with 2...a6 3 Nc3 c5 
hopes to get White to advance 4 d5 and 
then transpose into a Benoni formation 
with ...e6,...ed, ...g6, ...dG, ...Bg7, mean- 
while picking a moment to thrust ...b5. 
which may or may not involve a pawn 
sacrifice as in the Benko Gambit 
Kaidanov, however, subverted the plan 
with 4 dc. If Gurevich had played 
4...Qa5, then 5 Bd2 Qc5 6 e4 would 
head toward a Maroczy bind in which 
Black would soon have to expend an 
additional tempo or two ro relocate his 
exposed queen. 

On 5 e4. Gurevich did not want to go 
into 5...Bc5 6 e5 Ng8 because 7 Ne4 is 
strong for White. But in playing 5...Qc7, 
he let Kaidanov defend his pawn with 6 
b41, secure in the calculation that 6...a5? 
could be put down sharply by 7 Nb5! 


Qe5 8 Be3 Na6 9 Nf3 Qe4 10 Bd3 Qg4 
1 1 h3 Qh5 12 Ke2!, threatening to trap 
the queen with 13 g4. 

Gurevich quickly recovered his pawn 
with 6.~Ne4 7 Ne4’ Qe5 8 Be3 Qe4. but 
after 9 Nf3 b6 10 Bd3 Qb7, Kaidanov' 
had a great lead in developmenL ; 

He immediately went to work with J 1 ’ 
Ng5U Gurevich, after II ...he 12 be,', 
could not capture with 12...Qb4 13 Kfl ■ 
Bc5 because 14Rbl Qa5 15 Bc5 Qc5 16 ' 
Qf3 Qa7 17 Qf7 Kd8 18 Qg7 Re8 19 
Nf7 Ke7 (or 19...Kc7 20 Qe5 d6 21Qd6- 
mare) 20 Be4 Nc6 21 Bc6 dc 22 Rdl 
Bd7 23 Ne5 is annihilating;. 

Gurevich should have tried 12...Nc6, ' 
but after 13 Rbl Qa7 (or 13.,.Qc7? 14’ 
Qf3 f6 15 Qh5 g6 16 Bg6hg 17 Qg6 Ke7 * 
1 8 Qf7 KdS 19 Qf<5 Ke8 20 Qh8) 14Ne4 
Rb8 15 Nd6 Bd6 16 cd Rbl 17 Bbl Qb7 * 
1 8 O-O, White stands clearly better with ; 
the bishop pair, control of a prepon- . 
durance or terrain and a coming mating ’ 

On the other hand, 12...f5 further' 
delayed Black's mobilization, and it. 
didn't stop Kaidanov from attacking. 
Gurevich could have played 15..JKe7, 
but then 16 Nf3 Kd8 17 Rabl Kc7 18' 
Rb6Qa4 19Be5d620Rfbl Bc621 Qf7* 
Nd7 22 Nd4 is a slaughter. 

After 15...g6 16 Qh3 Rg8, Kaidanov ■ 
demolished the defense with 17 Be4! ? 
fel8 Qh7. Since 18...e3 would acorn-' 
plish nothing against 19 Qf7 Kd8 20 
Nf3. Gurevich staggered on' with 
18.. Rg7 19 Bg7 Qc5, but after 20 Bf6!, ' 
he had only a choice of 20...Qe7 21 Be7 
Be7 22 Qg8 Bf8 23 Qf7 or 20...Be7 21 ’ 
Qg8 Bf8 22 Qf7 mate, and gave up. 



MtoTtov GurVich KakFnov 


Position after 1C ... Rgg 

1 <34 

2 C4 

3 Nc3 

4 dc 

5 Q4 

6 b4 

7 Ne4 

8 Be3 

9 Nf3 
10 Bd3 

11 Ng5 

12 be 

13 04 

14 Bd4 

15 Qfa5 

16 Qh3 

17 Be4 

18 QU7 

19 Bg7 

20 BTC 






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|Air Canada 

i A Biiath of Freeh Air 



PAGE 13 


A Breath of Fresh Air 

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U : By Amy Harmon 

«. New Yori Tunis Sen- u~c 

' REDMOND, Washington — Morale 
is'not running high these days in Build- 
, tf i j- t fl t j i if; z .-£in& E on Microsoft's Redmond West 

7 campus, the hangout for the black -clad 

creative types that the software giant 

‘ hired to build a chic media business. 

' “I can show you Mint, the dead proj- 
ect," Sam Rrich-Dagnen. an on-line 
jfroducer. offers with more than a trace 
*-•••• ‘ of sarcasm. Ms. Rcich-Dagnen said the 

Dpderground Web magazine she created 
f *1 1 ~ a critical success with a core of 

t^»RliV 14**11 1 4 *11 lit* devoted twenty-something readers — 
f ill 111' I A* has bren put "cm hiatus." 

, The mood is scarcely cheerier next 

^ > VtH^ dborjn fre office of Michael Goff. Mr. - 

Goff, former editor of the gay lifestyle 
magazine Out, was hired a year ago to 
lead die editorial side of Microsoft’s on- 
line city guides, but now spends much of 
his time on practical buc 'unglamorous 
licensing deals for MSN, the company’s 
on-line service. 

It has been two years since Microsoft 
set up this satellite campus near the 
corporate headquarters where the com- 
pany chums out its ubiquitous, util- 
itarian Windows operating system and 
productivity programs like the Excel 
spreadsheet The environment at Red 
west was to be distinctly different And 
so were die products. 

But after spending about $1 billion 
chasing die evanescent business of en- 
tertainment and media, ^ Microsoft, is 

finding that the Red West products it 
likes best are those that bear the 
strongest resemblance to the pragmatic 
productivity software packages it 
already knows so well. As a result, such 
on-line “shows" as Mint are giving way 
to such “services" as an on-line tome- 
buying guide code-named Boardwalk. 

The shift may be caused in part by a 
corpcaate culture so rooted in binary logic 
and market domination that Microsoft 
management simply could not grasp the 
gut-instinct, hit-driven gestalt of the me- 
dia industry — whose profit margins 
typically fall far short of the 35 percent 
levels dial have made Microsoft the 
world's dominant software maker. 

. Set MICROSOFT, Page 14 

Thinking Ahead /Commentary 

Look for the Euro to Turn Out Strong 


By Reginald Dale 

inter iwo.w/ Herald Tribune 


#*» * 5 

% 'V 

*#**'?. • 

--- i- 

W ashington — in the 

often confused debate 
over Europe's single cur- 
rency , it is widely assumed 
that the euro will prove a feeble cora- 
' petitor in the world’s foreign-exchange 
markets, especially against the dollar. 

■ Thai assumption should be chal- 
lenged. There are good reasons the 
4uro is more likely to be strong. But 
TEurope's — especially Germany’s — 
‘leaders have not been doing a good job 
1 erf explaining them. 

Instead, the euro’s presumed weak- 
"hess has been increasingly taken for 
granted as more and more countries 
seem likely to join in its debut in Janu- 
-ary *999. 

. It seems to stand to reason that once 
'Portuguese escudos, Spanish pesetas 
‘and maybe Italian lire are added to the 
! mix, the euro will not be as strong as it 
would be if limited to a hard core of 
I France. Germany and a few other 
'sturdy North European participants. 

That is precisely the fear that ties 
behind the reluctance of so many Ger- 
mans to abandon the Deutsche mark, 
:the biggest political obstacle soil m the 

euro's path. . , _ ... 

! Plenty of Germans might feel their 
concern was justified by the collapse of 
the Italian government last week after ft 
failed to push through needed austenty 
pleasures. If Germany’s 
overcome those fears, they should start 

now, rather than trying, like Chancellor 
Helmut Kohl, to postpone the debate. 

When Germans say they want a 
strong euro, they usually mean they 
want it to be as good a store of value as 
the mark. They do not want inflation to 
erode what their money and their pen- 
sions can buy inside Germany. They 
are not talking about the euro’s ex- 
ternal exchange rate. 

Of course, the two things are closely 
connected. If the euro were persistently 

The currency will be 
backed by vast reserves, 
a relatively high savings 
rate and a growing 
current-account surplus. 

weak against the dollar, inflation could 
creep in via higher import prices, es- 
pecially for oil. 

But with the euro, Germans will no 
longer have to worry about their ex- 
change rale vis-h-vis most of their main 
trading partners, who would share the 
same currency. In fact. the euro zone’s 
trade with the outside world, as a pro- 
portion of its overall output, would be 
smaller than that of the United States, 
r ed ucing Europe’s vulnerability to ex- 
change-rate changes. 

Provided the euro stayed relatively 
stable against the dollar, it would not 
matter too much if it fluctuated up and 

down, especially if the current low- 
inflation climate in Europe were to 
continue. And there is a good chance 
thax the euro will be stable. 

As J. Paul Horne of Smith Barney 
foe. in Paris has pointed out, the euro 
will be backed by the world’s second- 
largest economic zone after the dollar, 
by vast combined foreign -exchange re- 
serves, bya Wgher savings rare than the 
United States and, unlike the United 
States, by a growing current-account 

The new European central bank will 
want to be tough on inflation to es- 
tablish its credentials. It will have the 
best state-of-the-art monetary instru- 
ments at its disposal and price stability 
as its prime objective. 

There is no reason the new bank’s 
Spanish or Italian representatives 
should be any less tough than their 
German colleagues. As it is, inflation 
today is lower in Italy and Spain than it 
is in Germany, and foe presence of foe 
Laim countries would probably push 
interest rates higher, not lower. 

That much has already been ac- 
knowledged by' foe Bundesbank, 
which last week began to nudge in- 
terest rates upward, at least partly to 
bring German rates closer to foe Euro- 
pean average in preparation for the 
euro’s arrival. 

Thar should be a sign to Germans 
and everyone else that foe Bundesbank 
does not intend to bow out by be- 
queathing Europea weak and inflation- 
prone euro. 


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Samc&Rt Ota. 

Guinness, GrandMet and LVMH 
Clear Way for $37.3 Billion Deal 

n n . . |v _ _ DMg Wbn/TIc Nn YokTina 

tveten-uagnen, left, an on-une producer whose undergroond Web magazin e has been put “on hiatus,*' and 
John Neilsen, vice president of the Red West division, who says ease of use is now the priority at the network. 

Re-Geekingthe Chic at Microsoft 

For Experimental MSN, Pragmatism and Profits Rule the Day 

Goavibdb!/ One Huff From Dapmcha 

LONDON — LVMH ended its op- 
position Monday to the $37.3 billion 
merger of Guinness PLC and Grand 
Metropolitan PLC after an agreement 
gave the French company control of 
most of foe beverage-distribution net- 
work of foe new company, a seat on foe 
board and £500 million ($8 10.5 million) 
in cash and special dividends. 

LVMH Meet Hennessy Louis Vuit- 
ton SA will now include GrandMet’s 
liquor brands in its joint distribution 
network with Guinness and stop legal 
action that could have banned the 
merged company from major markets. 
This threat, plus' LVMH’s purchase of 
11 percent of GrandMet, brought the 
two British companies (o foe bargaining 
table and got LVMH a £250 million 
payment to “bury the hatchet," Bern- 
ard Arnault, the chairman of LVMH, 
said. LVMH will receive another £250 
million as a one-time dividend from foe 
merged British companies. 

Guinness's chairman, Tony Greener, 
said the cash was “absolutely not a pay- 
off" to Mr. Arnault, who had wanted a 
three-way merger of the c ompanie s* liquor 
operations and was using his stakes in the 
British companies to try to block the deaL 
Mr. Greener said the payment reflected 
“additional benefits” to Guinness's busi- 
nesses resulting from foe agreement 

Guinness and GrandMet announced 
in May the plan to form GMG Brands 
PLC, saying the merged company would 
operate on a “truly international scale" 
and would have a market capitalization 
of more than £23 billion. 

GMG Brands would be foe world's 
biggest liquor producer in sales terms, 
with such brands as Johnnie Walker and 
Gilbey’s. It also would own Burger King 
restaurants, Pillsbiny food products and 
the Guinness beer brands. LVMH is foe 
Largest luxury-products company in the 
world. Its brands include Christian Dior, 
Louis Vuitton, Moet & Chandon, Veuve 
Clicquot and Hennessey. 

LVMH. Guinness’s biggest share- 
holder, with 14 percent would have been 
pushed to the sidelines by that deaL Mr. 
Arnault proposed instead setting up a 
liquor company with all three companies’ 
brands, in which LVMH would have 35 
percent Under Mr. Arnault’s plan, the 
food and beer businesses would have 
been spun off. as he said mixing Burger 
King with drinks was “incohenmL" But 

the British companies rejected his plan, 
and foe three had been locking toms ever 
since. Some analysts said Monday’s set- 
tlement represented a major concession 
by Mr. Arnault. 

“GMG Brands seems to have walked 
away with by far the better deal," one 
London-based analyst said. “Arnault 
has backed into a comer.” 

But Cedric Magnelia of CS First Bos- 
toa said that from an operational stand- 
point; foe deal was good. “You get 
synergies through all the distribution 
ventures, and they’re sharing over- 
head." Financially, foe deal is positive 
for LVMH, be said, adding that he did 

not believe foe group had overpaid for 
the stake it would have in GMG. 

“I don’t believe the story’s over," 
Mr. Magnelia said. “I think LVMH still 
wants to break up GMG Brands, and 
Arnault will be looking for partners, 
large food or brewing companies," 

Mr. Greener, foe Guinness chairman, 
said the timetable for foe GrandMet- 
Guinness merger, scheduled for the end 
of foe year, was unchanged. 

Guinness shares rose 29 pence to 
close at 605. Grand Met also ended at 
605, up 22. In Paris, LVMH finished at 
1,248 francs ($212.86). up 25. 

(Bloomberg, Reuters. AFX) 

Thomson-CSF Buyers Set 

3 Defense Firms to Share Part of State’s Stake 

Bloomberg News 

PARIS — The government said Mon- 
day it had chosen Alcatel AIsfoom SA 
Aerospatiale and Dassault Industries SA 
to buy part of its 58 percent stake in 
Thomson-CSF, the largest defense elec- 
tronics company in Europe. 

It did not say how Thomson-CSF' s 
capital would be divided among its fu- 
ture partners, saying only that the state 
would retain “more than 35 percent" of 
the company. 

The move is pan of an effort to con- 
solidate the French defense industry and 
join a Europewide regrouping after such 
rivals as Boeing Co. and Lockheed Mar- 
tin Crap, concluded a string of mergers 
and acquisitions over the past few years 
that reshaped foe U.S. defense industry. 

“Our aim is to build a group open to 
further alliances, both European and 
French, in order to respond to 
heightened competition in the defense 
industry," a statement from foe office of 
Prime Minister Lionel Jospin said. 

In foe past 18 months, France has put 
its stake in Thomson-CSF up for sale 
twice, only to cancel the offer both 

In foe most recent case, Alcatel joined 
with Dassault to put in one bid, and 
Lagardere SCA allied with Daimler- 
Benz Aerospace AG of Germany to put 
in another. 


That sale was called off shortly after 
foe Socialists won foe general election 
and took office in June. Officials have 
said the new government will retain 
holdings in slate assets rather than sell 
them outright. 

Thomson-CSF is foe third -largest de- 
fense electronics company in foe world, 
after Lockheed Martin and Raytheon 
Co. of foe United States. 

The French government said it had 
asked Thomson-CSF to start talks im- 
mediately with Aerospatiale. Alcatel and 
Dassault Industries to reach agreement 
on wider “industrial cooperation." 

Within Thomson-CSF, the govern- 
ment said it would regroup Alcatel's 
space and military defense activities, 
the defense and electronics businesses 
of Dassault’s Dassault Electronique SA 
unit, and the satellite businesses of the 
state-owned planemaker Aerospatiale. 

The government followed foe rec- 
ommendations of a recent French par- 
liamentary report that said the best way 
to reorganize foe country's defense in- 
dustry would be through a merger of- 
Aerospatiale, Dassault Aviation and 

“The government intends to create a 
major defense and electronics pole 
around Thomson-CSF, supported by a 
strong public shareholder," foe prime 
minister’s office said. 

You’ve got the vision. 
We’ve got the know-how. 

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PAGE 14 



Investor’s America 


The Dow 

30-Yesr T-Bond; Yield 

-rA- 1 6 LW 

6.40 -^V- 

Dollar tn Deutsche marks B Dollar in Yen 

r- 130 



J J A S 0 


Monday:- -Pm: : :r:v% 

The Dow 





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CapftEdteraaretf' . 

n& ' 

Source. Bloomberg, Reuters 

Intomauiioal Herald Tntonc 

Very briefly: 

Strong Profit Reports Cheer Wall Street 

Gmv&rtitnOitrSfB$Pnm Oapaaimr 

NEW YORK — A batch of strong 
quarterly earnings reports lifted the 
stock market Monday, with finan- 
cial-services companies turning in a 
particularly strong showing. 

J.P. Morgan, Travelers Group 
and Donaldson. Lufkin & Jenrette 
all posted results that met or ex- 
ceeded. analysts' expectations. 

“Everyone's focused on earni n g s , 
and we shouldn't see many negative 
surprises," said Jim Herrick, man- 
aging director in equity hading at 
Robert W. Baird & Co. in Milwau- 

kee. “If a company is in tune with topped expectations. Of the 65 er, primarily because of 
■ j -’ • — * — — .now. — in underwriting and tees 

investors and the market, it will have 
already preannounced tod results. 

The Dow Jones industrial a 1 
advanced 27.01 points to 

companies m the S&P 500 to report 
r, 35 have exceeded 



from advising companies on mcr- 

gem and acquisitions. Us shares 

J. P. Morgan said it earned $396 closed Yt higher at 7& 
million in the third quarter, up from Travelers posted a 29 percent m- 
$276 million a year earlier, as strong crease in profit, led by growth at its 
growth in its investment-banking Smith Barney brokerage unit Its 
while gaining issues outnumbered and asset-management businesses shares rose 13/16 to 75 5/1 6. 
losing ones by a 5-to-4 ratio on the helped lift revenue to $1.92 billion Syquest Technology was the 
New York Stock Exchange. from $1.55 billion. Its shares closed most actively traded stock, failing n 

The Standard & Poor’s 500-share 1 11/16 higher a: 120%. to 5 3/16 on concern about long- 

Eamings at Donaldson, Lufkin & term prospects for the maker ox 
Jenrette rose to a record $120.3 mil- data-storage devices. 

(Bloomberg, AP) 

index rose 1.12 to 968.10. 

A week into the latest earnings 
season, companies on average have lion from $56.1 million a year earli- 

MICROSOFT: Putting the Brakes to a Free-Wheeling Experiment on the Web 

involves mouse-clicking oa continu- The company denied the rumors point and Sidewalk, said ease ofwte is 

Continued from Page 13 

But mainly, the re-geeking of the 
chic at Microsoft has a simpler ex- 
planation: 1 Even the hippest on-line 

ally updated plane charts to make about a sale and saM the company now the priority. “We're a bunch of 

programming and the most sophis- 

ticaied literary efforts that have 
floated on MSN and the World 
Wide Web have not drawn enough 
of an audience to make money. 

Many of MSN's shows were 
“spectacularly unsuccessful'’ said 
Pete Higgeus, vice president of Mi- 
crosoft's Interactive Media Grouj), 

seat selections — is expected to sell remained committed to MSN. The uti l itarian software geeks here,” said 
more than $100 milli on in airline company has, moreover, given the Mr. NeQsen, who sprat 10 years on 
tickets this year, of which Microsoft network a makeover that emphasizes Microsoft’s main campus, “You’ve 
receives a portion in commissions, function over form, with easier-to- got to know your limitat i ons." 

On-line these days, pragmatism use e-mail and a new schedule of Microsoft executives suggest the 
seems to be more profitable than programming more heavily weighted emergence of a new definition of 
inspiration. Which is why Mi- toward fare like *’A Click Away,” an entert a i nm ent - — an on-line world 
crosoft’s evolving Dew-media interactive directory of Web sites. where “fun" is surfing for infor- 
strategy is retreating from art and The utilitarian ideology is being oration and putting it to use in daily 
entertainment and enTphaKiring in- applied across the board to Mi- : life. “I spent two horns last night 
stead services that help consumers crosoft’s media properties, which playing with Carpoint," ca,ri r * nrn 

besides MSN include MSNBC, an Jennings, an MSN vice 

• Pharmacia & Upjohn Inc. said it would move its headquar- 
ters from London to an unspecified location in the United 
States as it sought to increase sales in America, the world's 
largest market. 

■ Coca-Cola Co.’s chairman and chief executive. Roberto 
Goizueta, was in critical condition after developing a throat 
infection while being treated for lung cancer. James Williams, 
chief executive of SunTrust Banks lnc« will serve as chair- 
man at the company's board meeting Thursday. 

• L.A. Gear Inc. named David Gatto as chairman and chief 
executive after PCH Investments LLC bought a 42 percent 
stake in the sportswear company for an undisclosed amount 

• Gannett Ca’s third-quarter earnings rose a better-than- 
expected 37 percent, to $1525 million, thanks to strong 
advertising sales at its newspapers and lower newsprint costs. 

• Brazil is seeking permission from Japan's Ministry of Finance 
to sell 200 billion yen ($1.65 billion) of samurai bonds. 

• Hospitality Properties Trust, a real-estate investment 

trust, agreed to buy nine hotels, seven of which are still undo 1 
construction, from Marriott International Inc, for $129 
million. Bloimherg. AP 

citing as an example How Long?, 
which addressed questions cosmic 
and mundane about time and space. 

A service like Carpoint, on the 
other hand, is well on its -way to 
breaking even, thanks to ads from 
car dealers. It started as a collection 
of articles and reviews about cars 
and trucks but has evolved into a 
complex database connecting deal- 
ers with customers. 

And Expedia, a Web site where 
travelers can book flights — and 
where the only semblance of fun 

find information and buy things. 

Microsoft brass is thought to be so 
disenchanted with Red West’s per- 
formance that rumors began circu- 
lating that the company was plan- 
ning to sell MSN. Tbe service so far 
has garnered 2.3 million subscribers, 
compared with America Online's 10 
milli on — despite the fact that MSN 

on-line news venture with NBC 
At Sidewalk, Microsoft’s on-line 
city guides, even modest gestures in 
the direction of editorial content 
without a specific purpose have been 
scrapped. Kevin Delaney, a televi- 
sion producer who came to New 
York Sidewalk from VH1 and Nick- 

said Laura 

earnings, an MSN vice president. ‘ ‘I 
consider that entertaining." 

But with a $9 billion cash reserve, 
some contend that Microsoft has 
been toohasty in backing away from 
its experiments in entertainment 
“When you make a commitment 
to a new entertainment medium, it 
takes more than six months to es- 

comes already installed on millions elodeon, said he quit this summer eddish whether people are inter- 

.. 1 a. * - >> TV™ »hiaf avaf. 

of new personal computers. 

David Readennan, a software 
analyst at Montgomery Securities, 
said the network lost as much as 
$250 million last year. 

when it became apparent that “what 
I had been hired to do no longer fit in 
with the philosophy of the service.” 

John NeOsen, vice president of the 
Red West division that includes Car- 

ested,” said Tim Nye, chief exec- 
utive of Sunshine Interactive, which 
is producing an MSN role-playing 
game caiwi 1 ‘Vanishing Point’ ’ that 
is set to go on-line early next year. 

For Japan 
Sinks Yen 

___* ■* -f.- 
. a 


NEW YORK — The dollar , 
rose against the yen Monday- 
after Japanese government fig- ' 
urea showed that the economy 1 ^ 

remained in the doldrums, sour- ^ 
ing investors on assets in yen. 

Japanese imports showed" 
their biggest monthly decline in^ 
more than a year, the govern- 
ment said, and machinery or-'"* 
ders fell as well. The reports’ 
indicated that an April tax in- I 
crease was continuing to sap*] 
consumer spending, and - r* 

.=»i . 

— Ui' 

■.r:— ’ -Vfi 


deepened expectations that in-; 1 
rarest rates will remain at his- J 
tone lows. Pessimism over the 
economy also helped push Jap- U * 
anese stocks to their lowest ' 
level in more than two years. - 
“Machine orders were 
weaker than expected, while _j, 
the crumbling of imports shows 
a lack of domestic demand,” J 
said Mare Chandler at Deutsche ' 
Morgan GrenfelL 
At 4 P.M. in New York, the 
dollar rose to 120.8S5 yen from 
119.850 yen Friday, to 1.7505 
Deutsche marks from 1.7495 
DM, to 5.8750 Reach francs J f 
from 5.8725 francs and to’ 
1:4620 Swiss francs from 
1.4555 francs. The pound rose : 
to $1.6245 from $1.6218. 


|41 I -till 

... ft 

, ; »:• *• i 'S 

: _ St •ii'LM." 35r 

t mr 

ICG to Acquire Netcom 

Weekend Box Office 

The AthKiateU Press 

LOS ANGELES — “Kiss the Girls" dominated the U.S. box 
office over the weekend, with a gross of $1 1.1 million. Fol- 
lowing are the Top 10 moneymakers, based on Saturday 's ticket 
sales and estimated sales for Sunday. 

1. Kiss the GMs 


811.1 mason 

2. Seven v ears in Tibet 


SI 0.0 mi Item 

2 Saul Food 


554 mi Item 




S. Hie Peacemaker 

( DreamWorks} 

SS. 2 mi Bon 

* Rochet Man 

Wait Disney) 


7. LA- Confidential 

(Warner BmrU 

S3.7 ntHHon 

B. The Edge 



9- Most Wanted 

(New Line Onerna) 


la Gang Related 

(Orion Pictures) 


Bloomberg News 

ENGLEWOOD, Colorado 
— ICG Communications Inc. 
said Monday it would buy the 
Internet service provider Net- 
com On-Line Communica- 
tions Services Inc. for $283.5 
million in stock, or about 
$22.65 a share. 

The accord reflected a re- 
cent trend toward combina- 
tions by phone and Internet 

For Netcom holders, the 
{nice represented about a 50 
percent premium to Friday’s 
closing stock price of$ 15. 125. 
Netcom ’s shares closed Mon- 
day at $21,125. up $6. while 
ICG fell $1 to/ 

The acquisition would com- 
bine ICG, which provides lo- 
cal, long-distance and data ser- 
vices, with Netcom, one of the 
earliest commercial services to 
connect customers to the In- 
ternet The companies hope to 
provide “one-stop shopping,” 
consolidating their services to 
customers an a single bill 
The move follows similar 
combinations by companies 
including WorldCom Inc., 
which plans to buy the In- 
ternet units of CompuServe 
Corp. and America Online 
Inc. and has made a bid for 
MCI Communications Corp., 
one of the top Internet service 


Oct. 13, 1997 

High Low Lutes] age Qplnt 

Wgh Low Latest cage OpM 

Mgh Low Latest Chge OpM 

High Low Latest Chge DM 


CORN rcuon 
SrOOO bo mWrown- arts par busM 

Doc 97 
Mar 96 
MW 96 
Jut 96 
Sop «8 
Dec 98 
Jut 9* 

Est sates It A. Fih solos 1SL493 
Fits open bit 367499, lip 11400 













TO 1 . 





294 ft 





+ lft 







15000 Bn.- cents per lb. 

Nor 97 67.10 6AM 6*55 

Jon 98 <*9-fl5 69.10 49-S5 

Mar 98 73.90 7220 73 AS 

May 98 75.75 7530 7SM 

Est wins N A Fits solas 15136 
Fits open bit 4W99, up 1.172 

-0JS 17,320 
4140 12IJ 4 
-055 7,894 

-030 2.037 



Doc 97 99 JO 9573 MUM + 0J8 134,977 

Mar 96 «WJ6 HL34 950+028 *0*7 

Jim 98 97.90 97.90 97.98 -» 038 0 

Est soles; 77.851 . 

Open mu 141.0 m up 1017. 

Jun 98 94.90 94J» 9490 *0.16 89,157 

SepNI 9502 9*90 9501 *0.18 41,056 

Dec 98 9*96 9*89 9487 +0.17 51.990 

Merit 9*85 9480 MS4 +013 3*741 

EsLsdec 4*09* Prov.sWee; 168.127 
Pier, vat taU 455084 Off 5483 


Monday’s 4 PJhL Close 

The 300 iDost traded stocks of Ihe (toy, 
up to the dosing on Wall Street 
The Associated Press. 


Sites HKA tar UM Orge 


















































r » "fr 

































» HhVk 








mi „ 











100 trairoi - (Mars pertiwaz. 


100 tons- damn per ton 

Oct 97 24350 23050 24070 +9.10 *634 

Doc 97 33950 22650 23600 +840 43L380 

Jan 98 23750 22450 23410 + 850 17,443 

Mar 99 73400 371 00 230.00 + 700 1*825 

Atop 98 33180 219.00 77750 + 740 1*171 

Jol 98 23150 37000 22840 +7.10 9841 

EM. soln NA Frts urics 42J00 

Fits open Int 11*761. up 2598 

00 97 
Nor 97 
Dec 97 
Feb 98 
Apr 98 
Jim 98 

32830 327 


33120 32950 32980 

333.40 330.90 33100 
33340 33360 332 60 

335.40 33*40 33440 




-130 146 

-130 1 

■140 92^87 
-140 21,938 
-1.40 5991 

■140 10036 
-140 *391 

-150 484 

-150 8509 


m. 200 mBIan - pts ol 100 pd 

Dee 97 111.98 11130 111.98 +158 1193M 

Mor98 N.T. MT. 111.93 +1 j08 

Jun 98 N.T. N.T. 111.93 +158 120807 

Est. sole* 61597. Prav.nfln: 110898 

Pn* opaiM-- 120807 alt IM 

Esl softs *600 Fits satos 3X437 
Frfs com Inti 79.26* ch *546 



Nor 97 9*31 9*31 Dndl 31583 

Dec 97 9412 9*12 imeh. 1*130 

Jon 93 9*23 imeh. 1791 

Esl sates NA Fffs soles 10034 

Fns cpai bd 7133* Off S69 



SftOOO to*- amis par lb. 

Dec 97 7135 7132 7139 -025 <9.944 

Mar 98 7330 72.72 7237 -016 1*766 

Mo* 98 7*10 7155 7359 -027 7333 

Jut 98 7*68 7*30 7*40 -028 7332 

Oct 98 7555 7555 7555 undi 762 

EsL salts KA Frtk solos 7,181 
Rfs open Int 90*32. offl3S6 


60.000 Rn- amts par to 
Oct 97 74 ol -437 

Dec 97 7499 2*52 

Jun 98 2535 3479 

Mar 98 2U7 2500 

Mar 98 3*0 2512 

Jul 98 J575 2*30 

Esl soles NA Fits' 

Fits open hd 10*77* up 36S 

2*59 +030 2.151 

7*89 +033 5*692 
2514 +031 20179 
2534 +027 11367 
2555 + 035 7310 

7574 +034 7395 



5000 bu mtobnum- caft per busM 

Nov 97 729 495 71915 +19'* 934199 

Jon 98 733 TOO 724' s +1914 3*430 

«Mr98 741 706 729*. +17'+ 17.146 

Ma*98 744 713 736 +19’* l*0*o 

Jul 98 750 J171T 7411-j +10 lUll 

EM soles N A Fils sates 10*870 

Ftfl opai Ini 1 7V.9Z2. up 1.1 73 

25000 D&- coiAi pH IP. 

Qd 97 9*10 aj.W 9310 

Nor97 9*40 9340 9340 
Dec 97 9540 9400 9*15 

Jan 98 9580 9445 9*55 

Ft* 98 9530 9*pS 9*65 

Ml 98 9580 94 SO 9480 

Apr 98 9*55 

Mar 98 9*60 9455 9*55 

Jun 98 9*50 -M30 9*J0 

EM. sales 6+000 Ffts sales *364 
Ffiiapan M 51025. up 373 

■015 TJ35 
■0 IS 2J53 

-aio ra.i-03 
-a 10 L 06 i 

-aiO 1,133 
■aid 5612 

-aio i.oi 2 

■OSS 1569 
■OjBS 960 


SI mniaivptoafiaopct 

Nav97 9419 

Dec 97 9*U 

Mcf98 9*07 

Jun 99 9199 

5op9S *>391 

Dec 96 9332 

Mor 99 

Jun 99 

Sop 99 


Mar 00 


9*18 imML 11913 
9*14 imeh. 619JJ14 
9*06 undL 45*326 
9197 undi. 341^80 
9190 unen. 272J11 
9181 undL 2294M3 
9180 undL 151018 
93-76 imeh. 121104 
9173 uadv 10*123 
936« undL 8*484 
93*66 UldL 70474 
9162 undL 50247 

Nov 97 
Dec 97 
Jan 98 
Feb 98 
Mar 98 
Apr 98 
Mor 98 













5030 +tun 4*354 
99*46 -161 39,919 
6016 -158 21*247 
6036 -153 1U11 
59-51 -143 0117 
5736 -U8 5381 

5631 -1.18 1281 

EsL sates NA Frtk solas 21307 
Frtk open W 143329, off 242 


Mtoa ba nuntowm- canto per bushH 

Dec 97 3731! 3641: 371'+ +6 61732 

Mar 98 385 377 383* +61+ 2*631 

Mo* 98 39I-: 381 3W.t +5’5 5,179 

Jl49B 391': 3SA 39H5 +3'f 1L893 

EM. sotei NA Fits lam 2*677 

Fill open mt 1 1 2J17* up 1-521 

SkOOO trap ol- ends per Irav oz 
Od97 51100 

No* 97 517 0U 

Dec 97 57100 514 00 51*70 
Jai 98 516 10 

Mares 52*M 520J» 520 90 
Mav98 527.00 SY170 521 W 
Jilt 98 526 60 

Sep W 532.50 52950 52950 
E Sl. HdOS *500 FffS sates 1259 
Fits open mi 101741 off 1,256 



EM. sifts NA Ffts sates 711.988 
Fits open at 2J79.9H7. up 39,738 

■*80 71495 
ifio 20 

*80 18.964 
-480 2304 

*80 2.721 

*80 640 


61500 pound* S per pound 

Dec 97 18198 18176 undL 29864 

Mar 98 18114 undi. 253 

Junes 18053 UndL 27 

EM. Mbto NA Frrs sates *593 

Fits open W 2WU df 430 

Now 97 2130 2130 2130 

Dee 77 7135 2134 2134 

Jan 98 2135 21-20 2132 

Fab 78 2137 21.10 21.19 

Mar 98 2139 2185 2135 

Apr 98 3IJ3 3080 2092 

Est sates NA Fits sifts 85401 
Frts span Ini 44A39& up 5*21 

am e*i89 
-003 101.171 
-068 49.104 
-062 27,511 
-OSB 1*816 
-OSS 1X235 


10000 Den bhn, s per mm btu 

1030 3033 UldL 47.943 

+ S00 









40000 IM.- unto pnlh. 

Del 97 6T87 6730 6782 +082 &4S5 

Dec 97 67.40 67.05 6730 +035 424AS 

Feb 98 nuu »85 6992 +0-37 19.300 

Apr 98 7150 7X12 7147 + 050 11.910 

Jua«8 7047 TON 7IL4Z +1147 8302 

Aug 90 7035 6935 70.10 *067 

Fd- sates 10859 Frfs sates 9393 
Fir* open bd 9*43* off 69a 



50000 to* -cents par b 
oa?: 7735 77.15 7782 +035 

NO* 9’ 7797 7735 7785 +030 

Jan 98 7880 7835 7880 +OZ2 

Mar 98 .'887 78.17 7830 +030 

Apr 98 7885 7830 7840 +030 

MOf 98 7965 7925 7935 +0-15 

Est sales 1.933 Fits sates 1966 
Fit* Open Ini 1*769. up 42 


50 buy at- itoSars par huv u. 

0d 97 4251 CO 430.10 *U40 

Janes 43800 43330 43740 
Apr 98 432.40 -O10B 43280 
Jul 98 42780 

Ed.sftiU507 Frti sates 652 
hh opan ml 1X502. up 1 72 


■hear* per melric ran 
Atetotomi (ttlgb Grade) 

Spot lo»-.- 1637V 163700 163800 

Font cut 164400 164500 164*00 164500 

Cmaer UMH (Hiqb Grade) 

5poi .YKaOD 7C6500 70(900 207000 

Fanbanl .209400 209580 209800 209X00 


Spat (0100 60*00 60500 607.00 

Fanmnl 61600 ala-.-r 619JX) 62000 

1 00800 daHnS per CtbLdb- 


Dec er 
Mar 98 

Jun *a 3332 

Est rotes HA Frts vfts &616 
Fnscpenbd 59842, op 57 

undL 5*565 
undL LOTI 
undL 510 

Nov 97 
Dec 97 
Jan 98 
Fab 98 
Mar 98 
Apr 98 












2141 -0346 38850 
2114 am 27371 

2760 am* 19,101 

2330 -0319 12200 
2310 4131 S 8359 

EsL satee NA Frts sates 5*282 
Fits open bill, ail 230319 


125300 marts. S per iwnL 
Dec 97 3735 3740 onto. 

War 93 - 3709 undL 

Junto 3795 undi. 

EsL sales NA Firs ados 27319 
FnS Open tot 75332 off 902 










647000 643800 643800 64A00 
657000 653000 653000 654000 




Spat 5405 00 561500 553000 550000 

Fauartl 5650.00 564000 563000 5*1500 

ZMc (Special Hlgl Graft) 

Sad 1X100 ISM. DO 130400 1305.00 

' 131900 1370 00 171430 1315JK 

123 oAon ye* J per 100 wn 
Dec 97 Mt 3419 undL 

.’Aar 98 3531 undt 

Junes 3645 undL 

EsL sataNA Flfs sates 40-990 
Frlk open « 90656, up 2771 




42000 gal arts per gd 
NOU97 6130 XJS. 5933 -131 3&12S 

DOC 97 40.90 6830 5934 -139 19J21 

Jan 98 5930 59.10 59.90 -)jo 15*63 

Fft« 6020 59.95 60.13 -130 5.70 

Mar 98 6030 6035 mm -130 5305 

AlP-98 6205 -130 3310 

May 98 6230 -130 2677 

Jun 98 6230 6230 62.10 -130 1373 

Est sates NA Frts Idas 21707 
Frts open M 9X06* up 613 


125000 fumes. S par hmc 
Dec 97 6902 6916 undL 

Marta 6981 undi. 

Jun 98 .7044 uidL 

Est sofas N A Fits sales 1 1334 
FWs open bd 41.945. off LOU 





UAdaflan par mMK ton -lots at 100 tons 
Nov 97 18*00 179-75 181-25 — *23 35662 

Dee 97 18530 181.73 18230 —425 18378 

Jan 90 18630 18225 18*25 —423 

Feb 9g 18630 185.00 18*00 -*25 

Mar 98* 18225 18225 18123 —275 

AprtO 17830 17830 17825 -258 

May 96 1)630 17275 17530 -200 






42000 RJ*.- cento per K> 
0d«? 6417 6737 

Dec 97 U2S 6140 

F«b 98 62 J)0 6)30 

Apr 98 59.45 5885 

Junes 6530 6460 

High Law Ckno Cluje OpM 

E*r. eateK %S3I . Prvv. eates : 2&461 
Prev. open bftMAM off 2843 

6735 -062 
6230 +043 
6197 +0*5 
5M7 +042 
6205 +037 






Est. sates 7399 Frts soles 634] 
Fits open bd 38331. up 341 


4<MW to*-- cert* per in. 

F»W 62J0 <040 6173 .090 

Mar 98 6210 4030 61.90 +1.10 

Mores 6200 6200 6180 +130 

Est. sates lore Fits sates 1.270 
Fits open bd 7*31. off 18 


si ■men- ph oflOQpd. 

Dec 97 9S02 DfkLh. 

Mor98 950) undi 

Jun 98 9*96 undL 

Est sates NA Fits sates 380 
Fih open M M09. off 1 07 





500300 pesos, 1 per peso 

Dee 97 .12582 undL 2S309 

Mar 98 .12165 undi. %516 

Jun 98 .11790 undt 2.101 

Est sales NA Frts sates 2429 

Frf, OpefniU 4&IS6. ufl 136 





SWOJXW ptn- pfa &64ttn a(100 pd 

Dec 97 107-14 undL 229,171 

JimW -14 undL 

Ed. sates NA Frts sain 5*323 

Fits upon bd 225^8* eff *571 



10 metric kns-S per ton 
Dec 97 1681 1669 1676 +5 45338 

Mar 98 1713 1701 1707 undL SUM 

Mdr 98 1730 1737 1727 

Jtd98 1749 1745 1745 

Sap 98 1709 1762 1762 

Dac98 1785 1779 1779 

Est sides M60 Frts sates MS0 
Frts open bit 11&73& up 530 






SIOAOOO prtn- pts A 32ndS oMOO pd 

Dec 97 109 29 unch. 3U2X) 

Mar 96 109-18 undL 17388 

Jun as 109.10 UldL 2 

E»l. subs NAFrrt sates 10*710 

Frts apai W 402305. up *645 

DM) nflScn-ptontraopd 
0097 N.T. MT- «6Ji -031 

Nov 97 N.T. MT. 

Dec 97 9425 9422 

M0T9B 9S96 9492 

Jon 98 9269 9533 

Sep 98 9151 9535 

Dec 98 9232 9BLJ6 

Alar 99 9218 95.12 

Jon W 95J05 9*99 

Sep 99 9493 9*89 

EsLMteu 301J75. Prvv. 
Pm.openbrij 1^14998 up KBS’ 

Stock Indexes 


500 > index 

Dec 97 9SZOO 97*10 97410 
Mirre 992JH 98530 9*730 
Jun re 100030 99580 99580 
EsL sates NA fWi setae 47 J74 
Frts open Id I9X7B8. off 662 

-055 188.907 
-020 1508 

-200 936 


9423 +401 925 

9423 +002 324660 
95.93 -am 30*308 
9466 +002 2S8J24 
9447 +0JJ2 195836 
9528 +03216X646 
95.14 +0JQ 177.994 
9501 *002 71217 
9*90 +401 70825 


£25 per Index pabri 

Dec 97 S41U 044JJ 53500 +440 71015 
Mar 98 S407P 54073 53940 +4*0 1,956 

Est. sates 2497. Pne.sateE 1L073 
Piw.qxnkrij 74971 up 492 



Dec 97 168.90 16*00 167.90 +130 11^ 

MarfS 15X00 14950 15200 *130 4292 

Mar 98 147 JS 14SJJ0 I47.3S +1J0 XI76 

Jul 98 14235 14840 14235 +150 2366 

Sep 98 13725 13600 13725 +1J0 585 

Eft sates *023 Fits sates 1263 
Frts Open lot 24214 off 410 


(8 pd-llOILOOlHib & 32aft ailOO pd) 

D« 97 115-01 undL 644159 

Mb 98 11*23 undL 67.785 

Jun 98 11411 anCh. 4367 

Sip 98 11441 undL 1,961 

Est ndcs NA Frts sates 497.262 
Frts open W 724862 off 1164 

ESOIUMO -Bis otlOOpd 
Dec 97 9257 9255 

MarW 9255 9251 
Jutl 98 9258 9254 

Sap 98 92 j68 9262 

Dec9S 9283 9275 
Mar 99 9297 9287 

Jun 99 9211 9103 

Est sates; <7.361. Pnv. 

Pnv.ap4AUL 634688 up 441 

9255 +401 129.99/ 
9252 +083 11X631 
9155 +085 84304 
9264 +006 69.909 
9238 +007 62114 
9292 +008 SL923 
9207 +4.10 34793 



Od 97 3026J 2981 J1 30210 +680 22790 
N»re 30290 29930 30290 +680 M09 
DM97 30420 30010 30370 +600 17004 
Mar 9* 30580 30580 30630 +670 1X973 

OpenMi 83925 up 1094 

Commodity Irtoexes 


£50000 - jft432rxtsol HM pd 

112000 lbs.- cento per to. 

Mar 98 11.97 1102 US 

Mavre 11.99 1103 1105 
Joire 1102 11J3 11-7-9 
Odre 11-75 IT-77 11.71 
ES. note* 9.733 Frtk sates 12567 

Fifl open int 151031. off 207 

□ad 97 119-22 11946 119-16 +0- JO 192598 
Mar 98 <19-13 119-13 119-14 +0-20 1.937 
Est.wUtc 45591 ■ PiwtsMCE 87564 
Pnv. open int. 194535 all 2107 

-009 91589 
400 23557 

408 17570 

409 12316 

DM250.000- pts 0M 00 pet 
Dec 97 10255 102.25 10258 +025 310520 
Mar 98 101.70 101 JO HH.» ‘034 7.705 
Est sates: B&439. Prev.saies: 281501 
Pi»*. open ht.- 324225 up VB* 


FF5 ndBoo - pts ot 100 p<t 

Dtc 97 9607 9423 9624 +QJ11 40188 

Mar 98 9584 9589 9190 +003 4*728 

Jun 98 9569 9538 SIMS +003 20272 

Sep re 9550 9SA5 9546 + 002 194M 

DK98 9533 9527 9520 +0JD 21525 

Est sates: am 

Open mL-OT193 up 6-290 




DJ. Futures 








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PAGE 15 


pri'mt h~. ■ 

irSfc.'. ' r 



^taly s Biggest Insurer Bids $9.4 Billion to Buy AGF 

j h Oim Frpm 

J Assieuraziom Generali q„ a 


prices of other Insurers, such as bid to merge with the British insurer 
Assurances Rationales Commercial Union PLC. 

France s third- biggest insurer, Zurich Insurance .shareholders, 

s a, prance $ second-biceesi msnrZr 7Jr r 1 . y siua 11 was mter - hined company, and bat share* me financial-services mans try. 

ittensifying the con^idaS^’ 111 &e government’s 80 holders, through a British holding Mr. Brakel said that despite some 
Europe s financial-services indnstrv AltianzweN company, would own the resL . similarities, there was little overlap 

Its offer came the sam* ffaosaid it was interested in The merged company would have between Wolters Kluwer of the 

nrich Insurance Co. and BAT iw av^-c ^ significant operations in the United Netherlands and Reed Elsevier, a 

usuries PLC said thev olannert ,«? Air 88 “snapped op” from States, Britain, Switzerland and British-Dutch publisher. 

Cffra n global insurance and n™!!, )“"** Allianz s nose, said Patricia Germany. BAT’S insurance busi- .But some analysts questioned the 

management company with a * Scv 311 at Commerzbank ness includes Fanners Group Inc. in union. 4 ‘We will have a very strong, 
et value of abomsT/ KiiJ ?“ e “ Allianz would almost the United States and Eagle Star and almost monopolistic legal publisher 

hoves, like the nvAm i i cenaudy bid for GAN as pan of the Allied Dunbar in Britain. in Europe.” said Bert Siebrand of 

M &*.■****;■ 

' r * 1 ' 

t TW&rt < 

m '/*-» - 

m *m ***** 

fPMU ! 

g o a global insurance ™ z s nose, said Patricia 

lagemem company wiaTS" AG^^^Air ^ C ^ >mi ?f r ^ bank 

value of aboard bUtioiLsSh would almost 

*»ves. like the ■ j oth certamly bid for GAN as pan of the 


eEsSFBXZ ^wSrssSi,*. 

i The sinale cumwv u ^n months after Zurich Insurance said 

JKhaneSSte riST™ £“ r f nove lC would buy the New York-based 
zetwnge rate risk, making it more money manager Scudder Stevens & 

_rS^ m0ve “ t00!herE ^ ««*wMuSsrhS* 

.««:« »u a^d stock and a year after Zurich 

■ wan l to completed its $2 bfflion purchase of 

Corp., a life- insurance and 

23®?^“^ “raffia--. 

EZtonSS*! “^y tobacco and insurance company, “ir 

Companies that act before the in- brings about the denKrger thMewerv- 
° f euro can hope to one has been waiting for,” Jonathan 
i TT^rw \° n E !f nn '- ’ an analyst at Merrill Lynch & 

i ™ L,enera h bid raised stock Co., said. BAT last year failed in a 

These other merger and takeover 
announcements were made Mon- 

• Reed Elsevier PLC and 
Wolters Kluwer NV said they 
would merge to form the world's 

money manager Scudder, Stevens & biggest professional and scientific Ltd. the biggest bank in Finland, 
Clark Inc. for $1.7 billion in cash publisher. The combined , group said they would merge to create the 
and stock and a year after Zurich would have strong presences in Nordic region's largest bank, 
completed its $2 billion purchase of North America, Europe and Asia The combined bank, to be known 
Kemper Corp., a life-insurance and and leading positions in legal, tax, asMeritaNordbanken, would have a 
asset-management company. scientific, business, educational and market value of $10.7 billion and 

For shareholders of BAT, a British medical publishing. assets of $103 billion. The banks, 

^* aCCO *^ K * “surauoe company, ‘‘it * ‘We’re interested in all markets whose assets are about equal, would 
brings about the demerger that every- where we can make products which each control 50 percent of the voting 
otc has been waiting for,” Jonathan people need to do their work bet- rights in the holding company set up 
Fell, an analyst at Merrill Lynch & ter, ’ said Herman Bruggink, Reed to control die two banks. But Nord- 
Co., said. BAT last year failed in a Elsevier's co-chairman. hanken would own 60 percent of the 

Cor Brakel, chairman of Wolters capital in Me ri ta- N ordbank en, in 
Kluwer and prospective head of the line with the difference in their size 
merged company, said future ex- measured by market value, 
pension could involve a move into Goran Kailebo, an analyst at Mat- 

new sectors such as information for teus, said the deal was not as in- 
die financial-services industry. teres ting as Nordbanken merging 
Mr. Brakel said that despite some- with another Swedish concern 
similarities, there was little overlap would have been, 
between Wolters Kluwer of the “There will be cost savings, but 
Netherlands and Reed Elsevier, a they wilt be mainly on the Finnish 
British-Dutch publisher. pan of the new bank,” Mr. Kailebo 

.But some analysts questioned the said. “Merita has a lot more to do 
union. ‘ ‘We will have a very strong, than Nordbanken.” 
almost monopolistic legal publisher • Redland PLC rejected a bid 
in Europe.” said Bert Siebrand of valued at £2.07 billion ($3.36 bil- 
SNS Securities in Amsterdam, lion; in cash and assumed debt from 
“That raises the question as to Lafarge SA, a French building ma- 
tt' hether the European Union will terials company, and said it was 
give the go-ahead- ' ’ considering measures to increase in- 

• Nordbanken AB. Sweden’s vestor returns. 
third-1 argest bank, and Merita Bank Lafarge offered 320 pence for 

1 thf* hiooper hank in Finland «»nrh RrvIhnH sharp a 

•; 4500 5500 ■! 3Z50' — 

: 43»--'A---HS250 iT ~JT\ 

■ 4100 “ — rw “5 500(1 — Tu/Wr m ~n toy S 

; 3800 — - - :47S0 mSl '* 2800 T\T — ^ — ' 

f m-j/ i**™ m *r ; 

j j a s“os 4250 mTj a soh 

„ 1997 “ 19U7 1997 J 

^ ... 


fjKMa£ig' : i &7S&8gr ‘.**M 

each Redland share, a 24 percent 
premium over Redland’s closing 
price Friday. Redland ’s shares rose 
79 pence to close at 336 J, indi- 
cating investors think Lafarge will 
have to raise its bid. 

Buying Redland would make La- 
farge the world's largest aggregates 
producer, second to RMC Group 
PLC as a ready-mix concrete maker, 
and the biggest maker of roof tiles. 

(AFP, Reuters . Bridge News) 



\'2&h»/7 s ; • • 

Source: Tatekurs 

Very briefly: 


3^20*7 .a488Ba;-fftW 
~ -Offgas' lAOB&r&J* 

lntcrnatiunal Hcrolil Tribune 

'm «•?-. -x 

, ■ 

i^U Decides to Limit a Plan to Coordinate Its Tax Policies 

yte *** ■ 

rtf.. *•»»«*' * 
***** ** :■ 


rf : : 

• ■ n -- 

. -in 

j CtmtOnttnOtrSti4Fnmt>aptKhn 
Lit LUXEMBOURG ■ — The Euro- 
Fpean Union scaled back plans Mon- 
day for a sweeping coomination of 
tax policies, limiting its focus to 
investment income and to the tax 
breaks that some countries offer 
businesses to lure investment. 

'The Union's 15 finance ministers 
voted to drop plans for greater har- 
monization of value-added and cor- 
porate taxes, drawing the ire of 
France, which wants the EU to set 
minimum tax rates on corporate and 
savings income. 

' "There is a risk that we will finish 
the year with a code that is soft, ’ ' the 
French finance minister, Dominique 

Strauss- Kahn , said. “France insists 
on the need to go further and be 

The finance ministers are trying 
to work out common standards on 
taxing companies and investments 
to avoid potentially disruptive con- 
flicts over investment ana jobs after 
the introduction of the single cur- 
rency in 1999. Their meeting was 
overshadowed by talk of Italy’s 

g >litical crisis and of a softening 
ritish line on EMU entry. 

The Italian finance minister. Carlo 
Azeglio, said his country would be 
ready to join a single currency by the 
end of the year despite the collapse 
of its government last week. 

1 ‘The crisis is- upsetting but not so 
serious,” diplomats quoted Mr. 
Azeglio as saying. “The bulk of the 
work .in improving Italy’s budgetary 
position is already under way.” 

Gordon Brown, chancellor of the 
Exchequer, said Britain was very 
unlikely to join a European eco- 
nomic and monetary union at its 
planned start in January 1999. 

But he said Britain would be 
ready to meet the economic criteria 
for joining if the government's 
policy changed “In or out of mon- 
etary union,” he said, “we have set 
in place the strongest foundations 
for long-term economic growth and 
for high levels of job creation.” 

Separately, Deutsche Bank AG 
criticized the German government 
for failing to provide enough infor- 
mation to prepare for a European 
monetary union. 

Carl von Boehm-Bezing. a mem- 
ber of the bank's board, said many 
local authorities had taken no steps 
to prepare for the euro, the planned 
European common currency, be- 
cause they probably did not believe 
it would become reality and lacked 
information about the process. 

German banks, not the govern- 
ment, were leading the way in provid- 
ing essential information about the 
euro changeover, be said. “Far too 
little has been done in comparison 

. with other countries.” he said. 

t Reuters, Bloomberg) 

■ A Resignation in France 

Jean Gandois said he would 
resign as head of (he French em- 
ployers’ group after a dispute with 
the government over its plan to cut 
the workweek to 35 hours by 2000, 
Reuters reported from Paris. 

“In view of what must be called a 
defeat, t have decided to present my 
resignation to the executive coun- 
cil.” he said. Business leaders have 
assailed the government's plan on 
the workweek and said it would not 
succeed help fight France's 12 J 
percent unemployment rate. 

• Deutsche Lufthansa AG's shares closed at 33.40 Deutsche 
marks ($19.15), down 0.40, after the government sold its 
remaining 37 J percent stake in the airline. Individual German 
investors snapped up about 51 percent of the offering. 

• France Telecom's chairman, Michel Bon, said more titan 3 
million individual investors had applied to buy shares in the 
company’s partial privatization and that many were likely to 
be allocated fewer shares than they had applied for. Details of 
share allocations will be announced Friday. 

• Croatia decided not to use $78 million that the International 
Monetary Fund granted it after more than three months' 
delay. The United States effectively blocked the loan's release 
in July, saying Croatia was failing to meet its obligations under 
the Dayton peace accords on the Bosnia war. 

• Stentor PLC, an Irish telecommunications company, said it 
had won a U.S license to allow it to carry calls to Ireland from 
business and residential customers in the United States. 

• Edzard Reuter will resign early next year as chairman of 
Airbus Industrie’s supervisory bo aid because of criticism from 
his European partners, the Handelsblan newspaper reported. 

■ Banco Espanol de Credito SA, known as Banes to, said 
profit for the first nine months of the year rose 22 percent, to 
26.62 billion pesetas ($180.7 million) as income from lending 
and commissions rose. AFP. AFX. Bloomberg. Reuters 

t ‘ ' 


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*75 *84 

2J9 230 

932 931 
*65 448 
7313 1332 

134 137 
6 *09 

954 939 
433 *74 
*61 434 

135 839 

*59 437 
*67 *72 

8L62 83! 

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*75 638 
337 341 

*74 479 

733 M3 
733 739 
430 431 
339 I® 
737 *01 

170 174 

'.IS 531 



Arab Load 
Manic Eire A 
Metre Baqh. 
PN Lung Di» 

Son Miguel B 

SM Prime Hrig 


A8a A 







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PrevMi; 204131 

1375 14 14 

I6.7S >7 >*7S 

105 106 107 

110 330 320 

7350. 75 7*50 

,.295., 300 , 300 

■A® *® A® 

139 Ufl 141 

895 910 935 

51 5150 54 

6® *60 *60 

BoM Mac 524534 
Previous: 5267 £7 

6950 69® 7130 
22J5 2235 2305 
37.90 37.90 38.15 
1*18 1*28 1*® 
3938 29*5 ®25 
61 JO 62.00 6130 
331 133 336 

3300 3*65 32*0 
40J0 40JD ®J0 
1®J0 15050 IHjDO 
19 JO 19.70 1932 

Storebrand Asa 

Tkxor II® 

■ AGF .... .337-50 

ArUoMc 992 

AJcdriAlsib Bit 

Aaa-UAP 408 

Buncnlre 756 

BIC 438 

BNP 325 

Greial Plus 1095 

Canriauf 3555 

Casino 351 

CCT 360 

OfEton 679 

QnswnDW 833 

CLF-Deda Fron 618 
Credit AAricole 1320 

Danone M6 

Etf-AjwfaflM 763 

Eridorw BS BBS 



Daewoo Heavy 
Hyundai Eng. 
ICa Motor, 
Korea BPwr 
Korea Each B8 
Pohcmg Iran SI 
Samsung Dislay 
stwher sank 

Composite bKhsc 61330 
Pravioes; 499.64 

77500 73000 73900 72300 
6900 6400 6400 6850 
17608 >720 0 77300 77300 
7700 7200 7200 7700 
18400 17300 18000 17300 
4700 4600 4610 4630 
30700 M» 29000 29500 
49500 47800 49000 47500 
41200 39500 40000 397IB 
60900 59500 59500 59709 
7250 7010 71® 7250 
440000 414000 434500 415000 

Gen. Eaux 

CAG4B: 3009-98 
previous: 295*11 

1120 1137 1125 

231.10 .235. . 235 

970 m *79 
791 795 810 

405.10 406 39950 

730 751 731 

428 433 422^0 

30*20 3TSJ0 305*0 
1073 1091 1069 

3501 3544 3493 

341 35080 35376 
34*10 360 330J88 

662 674 658 

806 B10 789 

594 616 593 

1311 1320 1311 

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168 874 m 

8 810 810 
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703 714 702 

m.60 40*10 396.90 
735 7® 724 

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a Prevtoos: 19*124 

Asia Pac Brew 
City Devils 
Cycle Caniomi 
Dairy Farm Int ” 
DBS tori an 
DBS Land 
Fraser* Netra 
Jort Mathesn* 
Jard Slralegk:* 
Keporl Bank 
Keapd Land 
OCBC foreign 
Partway Hdgs 

5.10 5.10 
5.10 5 

930 9.45 

8ffi &*5 
tt.97 0.93 

16 15JQ 
3-50 3*4 

8® 8.25 

126 120 
7.95 7.90 

•402 4 

550 5J0 

3.16 3.12 

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3J2 3® 

9.90 9.75 

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6 £90 

5.10 5.10 

5 £15 

9*0 9-50 

8*5 880 

0.97 0.94 

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830 8*0 

124 126 

7.90 7.80- 

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112 116 
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144 152 

935 10 

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. 1 i ; ! • ! I V . ’ : i\ 1 • I' 

The Trib Index pwewt» an-oop.u 

Ua 1. 1992=100. Lmel Change % change year to data 

% change 

World Index 179.14 +0.57 +0.32 420.12 

Regional Indexes 

Asla/PacHk 116^9 -2.87 -2.40 -5.54 

Eumpo 198.07 +3.15 . +1.62 +22.87 

N. America 21159 +0.15 +0.07 +30.56 

S. America 177.44 +0.42 +0.24 +55.06 

Industrial indexes 

Capital goods 226.85 >0.98 -0.43 +32.72 

Consumer goods 198.36 +0.71 +0.36 +22.88 

Energy 209.64 +2.-4S +1.19 +22£0 

Finance 131.95 +0^3 . +0.17 +13.30 

Miscellaneous 190.35 +0.75 +0.40 +17.66 

Raw Materials 18735 +0.72 +0.39 +6.83 

Service 17120 +1.18 +0.69 +24.67 

Utilities 17322 +0.82 +0.36 +20.74 

Tim International Herald Traaina Work! Stock lnaexOtnid(SihBUS.doiarimlum at 
280 ettenvuonuByimmstBUoaioda turn SScomnus. Formant mfomseian. & tma 
booklet to avausm by writing eo 77w 7 Wj lnOax .181 Avarua Claries cto Crude, 

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5em-£ievw 9350 

Shatp 1020 

SMmkuEIPw 1850 

Shimizu 506 


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SumitMetal 276 

Sarott Trust 1180 

TabhaPharm 3130 

TakedoOwn 3600 

TDK _ 11000 

Toho ira a Pwr 1870 

TokoiBonk 885 

To«a Marine 1410 

Taiwam 2320 

Triwc Electron S3® 

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Yamcnouctt 3020 

xxiottb:* 1000 

Taipei Stock Mart® index: B46116 

Cathay LRe (ns 12450 122 1 22 124 

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ChJaaTungBk 77 7050 7050 77 

□ana Dewtpmt 98 96 97 9*5» 


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Will Trial Shed Lig ht dpShadowy Surveillance-Equipment Law 

- John Markoff ^ 


Jo ^ busi ^." Gilbert WajVsid^ 
someone «;ho had expressed m 
in pmihasmg gear allowing ite m™ 
;““S°f"f ul3r -'=lephone 8 convral 
a repon later filed by 

&““at«: wh0 ' was actuEdly * 
Bojgy or not. eavesdropping eauirv- 

aWddSJ tatS 

pait of the high-iec hnologv world nf 
whose merchants legally 

selfc their wares to law-enforcement 
agencies, goyemraem officials and tele- 
cwipntimcattons companies Often 
howev«. die same equipraen, ends up £ 

™&C e SS iDsftDmsimp,e 

the- traffic in sophisticated eavesdrop- 
ping technologies. raising iroubling 
questions about personal privacy in die 

craof wireless communications. 

The Justice Department has filed fed- 
eral charges of conspiracy to manu- 
tacnire and sell surveillance equipment ■ 
against two Burlingame, California, 
*J*n- Gilbert Walz, 41, die owner of 
1 ech Support Systems, a smal l com- ‘ 
pany based in Burlingame, was' charged 
in an indictment filed in March with 
having illegally conspired to ship-elec- 
tronic surveillance gear from Canada to 
a Cooksville, Tennessee, man who was " 
working as a federal informant. 

Mr. Walz’s partner. Jude Daggett, 
was indicted in June on charges of man- 
ufacturing and selling such- equipment 
illegally after he purportedly solid a 
second informant a software program 
that is used to control a cellular eaves-' 
dropping device. 

Both men have pleaded not guilty. 

The case offers a window into the 
world of surveillance technology, where 
the distinction between what is legal anH 
what is not depends entirely on circum- 
stances ■ — the ability of a seller to. verify 
die identity of a buyer, for instance. 

Ironically, some of the' evidence against 
Mr.Walz was obtained through federal 
telephone surveillance, according to 

Last year, separate federal charges 
against both men for illegal sales of such 
equipment to Mex - 
ican • officials — 

proved so sensitive The legality 
that. die trial was' ■ . ‘ j ■» 

monitored by fed-- depend 

Cral intelligence of- - the bm 

ficials, closed at the : 
request of the fed- 
eral government and Jaier postponed. 
Those charges, to which the.' men have 
pleaded not guilty, are still pending. ' 

The laws involved in these cases are 
complex. Eavesdropping eqnipment if- 
self may be- built and sold legally under 
federal law, government prosecutors ar- 
gue, as long as die buyers are gov- 
ernment agencies or telecommunica- 
tions companies. 

- High-technology wireless listening 
gear is readily available far eavesdropping 
and location-tracking purposes, according 

The legality of a sale 
may depepd on knowing 
who the hnyer really is. 

a .*•*"..* 

On-Line Outlet for Mideast Tensions 

r • - , , ' . • 

Muslim Groups Use the Web to Spread Ideology and Advice 

l By Youssef M. Ibrahiuj 

' Nei\‘ York Timrs Service 

LONDON — la the real world of 
iddle Eastern conflict, the militant 
Islamic organization Hamas and Israel’s 
intelligence agency Mossad locked 
hortis long ago. exchanging assassina- 
tions and other violent attacks in a 
macabre pursuit of one another. 

There is nothing quite like this on the 
World Wide Web yet, but echoes of the 
intensify of Islam’s confrontation with 
Zionism and Western culture are mixing 
on Jhe Web with the sounds of young 
high-tech Muslims from all around the 
globe wandering the Internet 
Following the lead of the Vatican, 
which established a Web site last year, 
organizations such as Hamas. Hezbol- 
lah, and Islamic Gateway — whose 
mono is. * ‘We aim to pul the FUN back 
Ail n fundamentalism” but whose mes- 
sage often is less than jolly — and others 
are filling cyberspace with Muslim sites 
of dll descriptions. 

They emanate from the Middle East. 
Europe and several American cam- 
puses. They dispense opinions on sub- 
jects ranging from male circumcision to 
lists of Muslim names for the newborn. 
They create 4 ‘Comfort Zones ’ * with dat- 
ing. and marriage ser\'ices for conser- 
vative Muslims and religious advice on 
the benefits of polygamy. 

Bpt ^mvpy^>{ ( some. o£ thesegires 
owir-se^^'wedor reveals ihar ripmy 
also serve as outlets for a deep rage over 
what some Muslims see as hostility 
against Islam in the .West and IsraeL 
The common denominator among 
these polemical sites is a call to stand up 
to what the Muslims perceive as op- 
pression and slights against their co- 
religionists in Bosnia, m Chechnya, in 
the West and, above all, in Israel. 

It is unclear whether the sites express- 

Where To Go 


http'J/www.academlc.marisLedu/hayman/muslim.htmI ... 



ing more militant views are becoming an 
effective tool for propaganda, recruiting 
and communication among revolution- 
ary groups battling to change die status 
quo. But they are being watched. 

“Of course we keep an eye on all 
these sites, even the harmless ones.” a 
senior Saudi intelligence official who 
asked not to be further identified said 
earlier this year. The monitoring pro- 
cess has yet to yield an arrest for ter- 
rorism. but he argued that it remained 
useful. “You know.” he said, “one 
name leads to another. Many are Dis- 

tance to Israeli Occupation of Southern 
Lebanon, .for example, has a site that 
promises periodic reports on military 
operations against IsraeL 

The Saudi religious opponents of 
King Fahd have a page run by the Com- 
mittee for the Defense of Legitimate 
Rights that lists in excruciating detail, 
every day, the alleged transgressions 
and shortcomings of the Saadi royal 
family, whose overthrow the organi- 
zation advocates. 

In this part of the Internet, the dom- 
inant' theme is that Muslims are a per- 

itants, and the infonpafion gdcjsjjjk”^ , ^secured group pursued by. a viciously 
?' t%ranqiau&6ut the 1 lisemex; orcT?tnte, racist West in alliance -with IsraeL On 
is at least as prevalent as the paranoia many of these sites, the presumption is 
and conspiracy theories found on the that UN weapons-inspection teams in 
Internet; many Islamic-centered sites arc Iraq are intelligence agents from IsraeL 

is at least as prevalent as the paranoia 
and conspiracy theories found on the 
Internet, many Islamic-centered sites are 
no more offensive than the Web pages 
of, say, record companies, tourist of- 
fices, automobile manufacturers or 
movie fans. But the violence in the 
Middle East makes ihesmdrocy cf some 
of the militant Islamic sites unsettling. 

A group called the Lebanese Resis- 

Companies Draw Up Plans 
To Expand ‘Smart Card’ Use 

By Paul Horen 

; Spt'cul !<t r*c Herald Tribune 

PARIS — Several major corpora- 
tions say they are developing new 
“uhart card” technology in a variety of 

On the eve of the Carte 97 conference 
here, the companies said they were ex- 
panding the reach of die cards, which 
■are' unlike normal credit cards in that 
3fc.-y contain microprocessors that allow 
theta to store data. 

Citibank said it would integrate a chip 
into its bank cards so they could hold 
account information, loan-payment data 

and such records as hotel and airline 

Nokia Group said it would embed 
new smart cards into its cell phones to 
provide secure access over wireless net- 
works, such as to die Internet 

Daimler Benz AG plans to issnesroan 
cards to clients to track maintenance, 
service and diagnostic records. 

Sanjaya Addanki, general manager 
for networking computer solutions at 
International ^Business Machines Corp. 
for Europe, the Middle East and Africa, 
estimated that the smart-card marker 
would grow to $15 billion by 2000 -from 
$2 billion this year. 

the United States and Britain. Many of 
the rites also say the various embargoes 
against Libya, Iran and Iraq are part of an 
“ Anglo-Saxon-Zionist” policy of * ‘gen- 
ocide by sanctions.” 

Muslim rulers in most countries do 
hot fare much better. They are invari- 
ably described as Western stooges. 

By far the most extensive site is Is- 
lam!' t",_\ „ 4 y, which ts bu^ed in Lon- 
don and fills the Internet with opinions 
and information about Muslim political 
and religious issues. dispatching them 
daily on its growing mailin g list of about 
15,000. Despite its motto of restoring 
the fen to fundamentalism, the site 
brims- with anger and an overarching 
desire to create solidarity among 
Muslims worldwide. 

The rite acts as an open forum on 
topics ranging from Kashmiri Muslims ’ 
struggle for independence from India to 
the views of the fiercely militant Tale- 
ban movement of Afghanistan and those 
of Ossaroa ben Laden, a Saadi dissident 
who was stripped of his Saudi citizen- 
ship and is based in Afghanistan. 

Most of the Web sites, with names 
such. as Cybennuslim, Dunya, Sufi Cen- 
ter Bookstore and the American Islamic 
Group of San Diego, whose motto is 
“fear only Allah the Almighty,” en- 
courage e-mail replies. 

to communications industry specialists. 
Assembled by companies such as Tech 
Support Systems, the equipment is then 
resold through a network of small security 
consulting firms and spy shops in the 
United Stales. la addition, in an interview 
last week, Mr. 
Walz said he often 
of a sale had sold and 

, . shipped such 

DU knowing equipment directly 

ST really is. ® ^hassiesin 

J Washington, which 

would have been 
able to reship ii. overseas in diplomatic 
pouches, avoiding tile scrutiny usually 
given to the export of such devices. 

Illicit uses of the gear, according to 
experts, range from just-for-kicks 
voyeurism to industrial espionage. In 
some cases, the equipment has been pur- 
chased by organized-crime and drug car- 
tels in tix United States and in Mexico 
and South America to track law-enforce- 
ment agents in the field, according to 
communications Technology specialists. 

The Tech Support Systems equip- 

ment gives thenser the ability to listen to 
and record dozens ofceUular-relepboue 
channels simultaneously and to target 
locations and focus on calls to specific 
numbers. The company also sold sur- 
veillance gear to government and in- 
telligence agencies in Mexico, 1 Brazil, 
Italy, South Korea, Malaysia, Canada 
and die Philippines, among others, ac- 
cording to the documents.' 

In recent years, eavesdropping 
devices have played a part in dramas as 
diverse as the political wars of .Newt 
Gingrich, the speaker of the U.S. House 
of Representatives, and the travails of 
Britain's rc^al family! 

The equipment that can track such 
calls is currently being advertised “for 
law enforcement use only” on the In- 
ternet by G-COM Technologies Ltd. of 
New York. 

“The nation’s communication sys- 
tem is disturbingly open," said James 
Dempsey, a consultant in Washington- 
and a specialist on communications pri- 
vacy Law. “Cellular phones are par- 
ticular vulnerable, and obviously there 

is a market for devices that do this.” 

■ Mr. Walz and. Mr.. Daggett say the 
equipment they sell has a variety of 
nonsurvdllance applications. Mr. Walz 
also said that in 1996 when be tried to ask 
federal prosecutors for a dear definition 
of the limits set by the law, he was told 
the authorities could not advise him. 

The company was, however, able to 
obtain export licenses from the Com- 
merce Department for some of its sales 
to private companies, Mr. Walz said. 

. Communications engineers said 
court rulings had "created loopholes that 
permitted eavesdropping -on portable 
phones and baby monitors while out- 
lawing surveillance pf cell phones. 

“The question is, does the design of 
the equipment render it primarily useful ' 
for electronic interception?” said James 
Ross, an electronics engineer in Sterling, 
Virginia. "This is the only law I know of 
that a person doesn’t know until he is 
indicted what the law actually covers.” 

. • Recent technology articles.' 

' www. 





15-20 October 97 

November 97 

20-21 November 97 

EQUIP* AUTO - 1 3" kreeraaoonil Exhibition of New Technologies of Original Eq u ipment. Spare Pans. 
Accessories and 

BAT1MAT - Incemabonal Building Exhibition 3-8 November 97 

INTERCLIMA - International Hearing. Refrigerating and Alp-Conditioning Exhibition- 

IN TERSE LECTION - The International Exhibition for Volume Retail Fashion 18-21 November 97 

NOUVEAU REGARD - The Exhibition for Fabric Quick 

EUROPLAST - UP Internationa) Exhibition for Plastics. Rubber and Composite Materials 24-28 NOVEMBER 97 

MIDEST - The Internationa] Subcontracting Exhibition . 24 - 28 November 97 

MAISON8eOB 1ET -The.lmierfiattonal- Home Det oration? Glftvrar* and ■Tableware- Exhibition ■ ■ 

CONFORTEC INTERNATIONAL - Trade Show for Household , 

JOUET - International Toy Fair 29 JANUARY - 2 FEBRUARY 98 

EXPOBOIS - interna dona/ Exhibition of 

PREMIERE VISION - LE SALON -.The Worlds Premier Fabric Show © 

INDIGO - International Exhibition of Creation and Design for Fashion and Decoration 

MOD’AMONT - Fashion Supplies and Trimming Trade Fair 

MIDEC - International Shoe Fashion - Paris 8-10 March 98 

SITL - International Week of Transport and Lo, 

LOGIBOX - Solutions for Logistics Facilities 17-20 March 98 

MACHINE OUTIL - International BJ i Bon of Production Equipment for the Mechanical Industries 30 March - 3 April 98 

EURO ASSEMBLAGE - kitemadonal Exhibition on hdustrial, 

INTEROLTTIL - Interratxxol Exhibition on Cutting'ShapingToob Metals, Plastics and Composite Materials 30 March - 3 April 98 

INTERQUAI..TE - international Ex/iiwoon of Equipment for Measuring and Comroling Quaky of ftoduction. 

Software. Consultancy and Services In the Reid of Quality and QuaBty Assurance 30 MARCH - 3 April 98 

THERMIC - International Industrial Heat Equipment Exhibition 30 March - 3 April 98 

MECANELEM-MECATRONIC - International Exhibition of Mechanical HyAadlc. OWHydrauIc. Pneunatic, Bectric and Bearonk 
Rawer. Drive and Servo Components and Systems for Desjgi, Manufacture. bTregrarion and Maintenance 30 March - 3 April 98 

HOPITAL EXPO 30 March - 3 April 98 

INTERSELECTION - The International Exhibition for Volume Retail Fashion 12- 15 May 98 

NOUVEAU REGARD - The Exhibition for Fabric Quick R 

GRAPH (TEC - The Bcfubition for Design. Processing 'Transmission, fretting and Distribution of Information 12-16 May 98 

EDITION PC - The Exhibition for Com 

CORRUGATED - Corrugated Board Manufacturing and Converting Exhibition 4-9 Junb 98 


March 98 

March 98 

March 98 

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PARIS-NORD Villepinte : HL- 33 ( 0 ) 1 48 63 30 30 -Fax: 33 ( 0 ) 1 4843 33 70 

N f I l I I III 1 6 Till B I S I I E S S 

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Surplus Rises 
In Japan on 
Low Demand 

For Imports 

C ripiM tn- Our $a£ FiaH Dupaehrs 

TOKYO — Japan's surplus in the 
broadest measure of trade grew 78 
percent in August from a year earlier 
because of weak demand for im- 
ported goods, the Finance Ministry 
said Monday. 

The current-account surplus, 
which measures trade in mercnan- 
disc, services, tourism and invest- 
ment before adjustment for seasonal 
factors, jumped to 817.8 billion yen 
($6.74 billion) in August 

Japan’s overall trade surplus rose 
to 912.6 billion yen from 543 2 bil- 
lion yen a year earlier on expats of 
3.83 trillion yen, up 14 percent and 
imports of 2.91 trillion yen, up 3 

Imports fell 8. 1 percent in August 
from July, the biggest decline since 
August 1996. But exports were up 
only 0.7 from the month before as an 
slowdown in Southeast Asia reduced 
Japan's shipments to that region. 

Analysts said Japan’s trade sur- 
plus with the United States and 
Europe was likely to expand at least 
until early next year, and they 
warned that the continued growth 
w ould further fuel trade friction be- 
tween Tokyo and Washington. 

“The United States has over- 
looked Japan ’s external surplus earli- 
er this year,” Kazutoshi Aratake, an 
analyst at Nikko Research Institute, 
said. “But recent levels of the sur- 
plus. particularly in the auto trade, 
gave Washington the nerves.” 

(AP, AFP, Bloomberg) 

Singapore Rides 

By Michael Richardson 

huertwnotal Herald Tribane 

SINGAPORE — Despite more than three 
months of turmoil on Southeast Asia's currency 
and stock markets that rocked even the nor- 
mally sturdy Singapore dollar and sent shares in 
the island-state into a rail spin, Singapore's 

economy will weather the storm without any 


major loss of economic momentum, officia 
and independent analysts say. 

Asked in Parliament recently how Singapore 
was being affected by the crisis in the region. 
Finance Minister Richard Hu replied that the 
“ imm ediate impact” was “very small, cer- 
tainly for this year.” 

He repeated official forecasts that the Singa- 
pore economy would grow by 6 potent to 7 
percent this year after inflation. But be declined 
to given forecast for next year, saying that growth 
in goods and sendees, particularly, in tourism, 
“could be weaker, reflecting slower growth and 
poorer business sentiment in the regional econ- 
omies.” In the longer tom, he said, the impact 
“will depend on how quickly die regional econ- 
omies resume their normal growth.” 

Singapore’s fellow members of the Asso- 
ciation of South East Asian Nations account for 
almost 25 percent of its trade, so the prolonged 
currency weakness and the resulting economic 

slump will clearly have some impact on Singa- 
pore’s. growth prospects. . McKeover,- Singapore 
finds itself in a res s axnpetitridpc&itibft after the 
dramatic drop in die value of currencies in In- 
donesia, Thailand, Malaysia and the Philippines. 
The other members of -ASEAN are Brunei; 
Banna, Labs and Vietnam.- \ 

In managing its dollar; Singapore uses a trade- 
weighted basket of foreign, currencies m which ' 
the U.S. dollar is only one component So far this 
year, die Singapore dollar has risen 26 percent 
against the Thai baht, 39 percent against the 
Indonesian rupiah, 12 percent ag ' 

' sian ringgit and 3.3 parent agaii 
mark. But it has Men 9 percent against the U&. 
and Hong Kong dollars, 9.4 percent against the 
Chinese yuan and 5.6 percent against die yea. 

B at Mr. Hu said die impact of the falls in the 
Indonesian and Thai currencies on die cpmr , 
petitive position af-Singapore" m other mar kets • 
was not large, because those countries’ exports 
were different from Singapore’s. Tire biggest 
impact would come from trie fall in the ringgit, 
he said. “If the large differential persists, then* 
of course-, the issue of competitiveness against, 
us becomes a little more important because 
there is some overlap in die middle range” of 
Singapore’s exports with those of Malaysia. 

Although the Singapore dollar’s rise: against 
the ringgit and other regional currencies will lead 

to lower prices for imported fbodfrom countries 
jnich-as Malaysiaand Indonesia, it also will tend 
to cut mro& urist ar ri vals from within- the- region. 
Visitors from other- ASEAN nations are the 

- * /still, Singapore's exports are 
.about 29 percent go to the United States, 18 
* 1 ** 'Tnion and 9 percent to 

Japan, with only 20: percent dependent on 

markets — so its economy .appears 
well placed to take advantage of growth in 
North Americh, Europe and Japan. ■ 

“All in all. the net effect of the regional 
slowdown on the Singapore economy will' be 
mildly negative,’ ’ as analyst at SocGen-Crosby 
Research 'said- * r We'a re. likely to see a mod- 
eration of real GDP growth from 7-3. percent 

■" PoKtical -and Economic Risk Consultancy, 
basedmHoug sees 
Singapore’s growth tapering down to 6.5 per- 
cent in 1997 and 5.8 percent in 1998. 

‘ ■ Domestically. ; Singapore is in a good po- 
sition to ride out the current turmoil,' ’ the con- 
sultancy said ina recent report- “ But to the extent 
that the currency and stock-market turbulence 
fence an economic sfowdotfur in neighboring 
'countries, Singapore’ strode, and by implication 
its GDP growth, wifi also be affected.” ' - 

Investor’s Asia 

% ■ 

Source: Tetekuis 

Very briefly: 

Amid Criticism, Thailand Eases Curbs on Failed Firms 


BANGKOK — The government 
relaxed some of the terms Monday 
for 58 suspended finance companies 
to resume business, but analysts said 
they doubted die steps would help 
revive many of the companies. 

“We have been waiting a long 
time for T hailand to devise, agree 
and implement a sustainable solu- 

tion to the significant shortcomings 
in its economy and financial sec- 
tor,” said Mask Leahy, manager of 
Asian fixed-income trading for 
HSBC Markets in London. “So far 
we’ve had little concrete evidence 
of any credible plan. ” 

The measures indicate the gov- 
ernment is willing to leave the door 
open for failed finance companies to 

live on, analysts said, rather than 
disposing immediately of those with, 
little left to offer. 

The government has given or 
loaned the finance companies 430 
billion baht ($12.03 billion) in a 
failed attempt to keep them solvent 
since June. . On Monday, Finance 
Minister Tbanong Bidaya - said 
companies that could raise the cash 

to offset their huge loan defaults 
could get back in business. 

He also foreign investors would 
be allowed to take majority stakes in 
any revived finance companies for 
as long as 10 years and that a final 
ruling on the future of the 58 compa- 
nies would not be made until at least 
the end of November. 

( Reuters . Bloomberg) 

• Airbus Industrie plans to sell more than 100 aircraft to 
India in the next 15 years, about half of what the European 
plane-making consortium estimates the country will need. 

• China’s oil production is not growing quickly enough to 
meet the demands of its accelerating economy, and Beijing will 
have to rely on international cooperation in the years ahead, a 
senior Official said. He forecast that China would need 195 
million tons of oil by 2000 and 265 million tons by 20 10. 

- Exxon Corp. will continue oil and gas exploration in China 
despite coming up empty-handed in its current drilling op- 
erations. The U.S. oil company also plans to build an oil 
refinery in Fujian Province, a project it valued at “several 
billion dollars.” 


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‘Shock Waves 9 for World in Currency Turmoil 

• Japanese personal-computer makers plan to increase exports 
of notebook PCs to the United States because of the weak yen 
and growing demand. Japan’s exports of notebook PCs soared 
220 percent from a year earlier in January through August 

CntpdaitfyOiirSii&F'iTjn DhpaeSa 

HONG KONG — Political and busi- 
ness ieados gathered Monday for the East 
Asia Economic Summit, with warning 
about die region’s troubles and China's 
pledge to speed reforms at center stage. 

Steve Hanke, a professor of econom- 
ics at Johns Hopkins University, speak- 
ing of Southeast Asia’s economic prob- 
lems. said deflationary forces in the 
region would “send shock waves 
through the global capital markets.” 

He said the Asian crisis was more 
troubling for the world than the sudden 
fall of the Mexican peso was in 1994-95, 

because Asian economies accounted for 
almost a quarter of the world’s exports of 
goods and services. 

The chairman of China's State Eco- 
nomic and Trade Commission, Wang 
Zhongyu, told toe opening session of fee 
three-day meeting that Beijing would 
undertake faster reform of stare-owned 
companies to try to create .world-class 
companies “wife names in the Fortune 
500” by fee turn of the century. - 
President Fidel Ramos of the Phil- 

ippines and Singapore’s prime minister, 
Goh Chok Tong, will address the fan: 

of Malaysia was Invited but declined to 
attend, according to organizers. 

Malaysia will release its 1998 budget 
Friday, and analysts and investors will be 
watching for measures aimed at lowering 
the country’s current-account deficit 
“The expectations being created may 
be-so ranch more .than can possibly be 
fulfilled," said Life ISdg Seng, chief 
economist at TA Securities. “We may be 
setting ourselves up for a bigger fall.” 
Malaysia’s finance' minister, Anwar 

• Nike Inc. fined Taiwanese Pon Chen, a joint-venture plant 
in Vietnam, $5,000 after a female supervisor ordered workers 
to produce rubber sex toys. The plant was ordered to halt 
production of the toys. AFP, AFX. Rearers 


Red-Chip Shares Take a Tumble 

the forum. 
Prime Minister. Mahathir bin Mohamad 

Malaysians fee budget would be a 
ficult one. . (AFP, Bloomberg) 


HONG KONG — Shares of ‘ ‘red-chip" companies — those 
listed in Hoog Kong feat have financial backing from mainland 
China — fell Monday, triggered by a plunge in Beijing En- 
terprises Holdings Ltd. shares and fears that the flow of 
mainland capital to the companies might dry up, analysts said. 

The Hang Seng China- Affiliated Corporation Index dropped 
177.98 points, or 6J2I percent, to 2,687.13, its lowest closing 

level since mid-June. Beijing Enterprises lost 5.40 Hong Kong 
dollars, or 13.2 percent, to close at 35.50 ($4-59). 

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cr; ,o. xxi 

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PAGE 19 

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Monday’s 4 P.M. Close 



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: V 

PAGE 20 




World Roundup 

i • 


Duval Wins Playoff 

oolf David Duval made a 10- 
foot birdie putt on foe first hole of a 
tiure-maa playoff and won die 
Mic hclo b Championship in Will- 
wnisbnig, VirginuL It was his first 
career victory. 

Duval had finished tied with Duffy 
Waldorf and Grant Waite, who all 
finished wiih four-round totals of 
271, 13 under par, Sunday. (AP) 

Record Falls in Oima 

swimming Chen Yan broke the 
women’s 400-meter individual 
medley world record when she 
clocked 4 minutes, 34.79 seconds at 
China’s National Games in Shang- 
hai mi Monday. 

Chen, 16, broke the marie of 
4:36.10 set by Petra Schneider of 
East Germany at the world cham- 
pionships in August 19S2.( Reuters) 

England Fans Convicted 

_ SOCCER Pour En gland fans were 

given suspended jail sentences in 
Rome on Monday after assaultin g 
Italian police officers before and 
during Saturday night's World Cup 
qualifier. All received eight-month 
suspended sentences. 

Twenty other fans are awaiting 
trial in a Rome jaiL (AFP) 

Four Clubs in One Bag 

ENIC, an English in- 
vestment company, said Monday it 
had added to its soccer portfolio by 
buying AEK Athens, a leading 
Greek club, for £6 million ($9.6 

The company also has stakes in 
Vicenza, which finished eighth in 
Italy's Serie A last season, and 
Siavia Prague, a top Czech team. 
ENIC also owns 25 percent of the 
Glasgow Rangers, the Scottish 

Robert Hersov, the manag in g di- 
rector of ENIC, said the company 
would make further soccer invest- 
ments and that each team operated 
independently. (AP) 

Wolverines Seek Coach 

basketball Tom Goss, the 
University of Michigan’s athletic 
director, said Ben Braun, the coach 
at California,, was .on bis list of 
possible successors to Steve Fisher 
as basketball coach. Fisher, who led 
Michigan to the NCAA tide in 
1989, was fired Friday, one day 
after a law firm hired by the uni- 
versity to investigate its basketball 
program issued a report that found 
three NCAA violations. (AP) 

Soccer’s ‘Vietnam’ 
In Central America. 

Salvadoran Fans Create a War Zone 

By Serge F. Kovaleski 

Washington Past Service 

SAN SALVADOR — It is a vortex of 
savage soccer hooliganism. 

There has been the sacrificial throw- 
ing of animals, mostly chickens, cats and 
iguanas, both dead and alive. There are 
the occasional showers of urine, fecal 
matter and pica-pica, a plant dust that 
causes itching and irritation of the skin. 

Goals are sometimes celebrated with 
gunshots. Firecrackers, rocks and other 
projectiles routinely erupt. A referee 
was left staggering after he was belted in 
the head with a bottle at the end of a 
recent World Cup qualifying match. 

Welcome to ’^Vietnam.” 

It is a hard-bitten stretch of about 
16.000 cheap concrete seats at Cus- 
catlan Stadium here in El Salvador's 
capital that is arguably the most no- 
torious section of soccer diehards in 
Latin America. They are a stew of some 
of the poorest, most violent and most 
desperate people in this Central Amer- 
ican country of 6 million residents. 

Since the late 1960s, generations of 
these fans and their section have been 
collectively dubbed Vietnam, a folk- 
lorish moniker that reflects their bat- 
tlefield brand of rooting — in both local 
anri international gampw — that today 
- has developed an even tougher edge 
with the emergence of aimed gangs in 
the nation's cities. 

“You have to have guts to come 
here," Oscar Fonceca, 26, said while 
standing in Vietnam during a match be- 
tweenEJ Salvador and the United States 
this summer. “Here we have tire real 
people, and we have our own law." 

Police officer Rodolfo Arevalo, wbO 
was assigned to Vietnam at last month’s 
contest between El Salvador and 
Canada, offered his perspective. “This 
a feared place, a very tense and nervous 
place," he said. “It is for people with no 
means and no culture at all. and the 
worst tilings come here. But a lot of 
emotions come here, too." 

The National Civilian Police dis- 
patched 2,000 officers to provide se- 
curity at the game — nearly one-seventh 
of the force. Large numbers of firearms 
and knives were confiscated before the 
match at checkpoints around the sta- 
dium, and dozens of arrests had been 
made by the time the final whistle blew. 
Security was so tight that radios were 
banned from the arena for fear the bat- 
teries would become airborne. 

Arevalo said that what goes on in 
Vietnam is illustrative of how El Sal- 
vador's 12-year civil war, which ended 
in 1992 with the signing of a UN- 

brokered peace accord, fostered a cul- 
ture of violence and lawlessness that still 
persists in this country. Looking around 
as several of his fellow officers wrestled 
a thrashing fan out of the section, he 
said, “You really have to be here to 
comprehend what Vietnam is like/’ 

There have been concerns that out-of- 
control fans could cause soccer’s world 
governing body to penalize El Salvador's 
soccer federation and .require the team to 
play home matches in another country. 

While denouncing the violence, Ser- 
gio Valencia, who plays on El Sal- 
vador’s national team, said that soccer 
for the fans in that section is an escape 
from the hardships of life. “They are the 
poorest of the poor. And they come here 
to live and release their stress, and they 
express it in different ways," he said. 

Lately. Vietnam — where it costs 
about $5 to sit cat the sun-drenched east 
side of the 42,000-seat stadium — has 
been receiving international attention as 
El Salvador competes in a s Lx -nation 
qualifying tournament for the World 
Cup in France next year. The regional 
security office of the U.S. Embassy 
here, for instance, issued an advisory 
two weeks before the United States 
played El Salvador. 

“The ambassador has determined 
that, for safety reasons, all official U.S. 
government employees and dependents 
assigned to El Salvador are prohibited 
from attending” the match, the notice 
said. “U.S. citizens attending the recent 
match between Guatemala and the U.S. 
in El Salvador were threatened by fans 
and pelted by dangerous projectiles.** 

Tne statement implored any American 
citizen planning to go to the game “to 
consider the danger they and their chil- 
dren might confront at such an event” 
Prior to die match, which ended in a 1-1 
tie, radio broadcasts asked spectators to 
behave, and fliers were banded out urging 
fans to “show the world our manners” 
— which they did for the most part. 

That was not the case, however, in an 
earlier qualifying match between El Sal- 
vador and Mexico. Officials halted play 
for several minutes after fans inundated 
the field with objects. The angry display 
followed a decision by an Argentine 
referee not to call a penalty against Mex- 
.. icq. for what Salvadoran, fens, saw 35. a , 
blatant infraction. At foe end of foe 
game, a linesman was hit in the head with 
a bottle thrown by an irate spectator. 

“That is justice," said spectator 
Mario Outonio, 26, who was sitting in 
Vietnam during foe march between El 
Salvador and Canada. “When the ref- 
erees act bad, we act bad. That is foe way 
justice works here.’’. 

Imd HazWTtu- Vmiafrd FW 

Argentina’s Hern an Crespo shooting past Uruguay's Paolo Montero 

Italy Next Faces Russia 
In World Cup Playoff 

GmQtied by Oar SkfffFwm Dtspmcka 

Italy, a three-time winner of foe 
World Cup, must overcome Russia in a 
two-leg playoff to qualify for next 
year's World Cup finals . 

The two countries were paired Mon- 
day in a draw involving eight countries 

WoKfcD CupSoccei 

that finished as runners-up in Europe's 
World Cup qualifying groups. The four 
winners will advance. 

Either- Croatia or Ukraine will make 
their first appearance in the finals after 
they were drawn together. Yugoslavia 
drew Hungary and Ireland will play 
Belgiurtbrf.i ,— ... ,.-1^ _ 

Croatia, Russia, Ireland and Hungary, 
are at home in foe first leg on Oct. 29. 
The second leg is on Nov. 15. 

Italy last failed to qualify in 1958. It 
was forced into the playoffs after a 0-0 
draw at home with England on Saturday 
to finish second in Group 2. Russia fin- 
ished second to Bulgaria in Group 5. 

South America Chile moved into 

U.S. Cyclist Finds the Pain Is Mostly in Spain, but He’s Back 

By Samuel Abt 

International Herald Tribune 

anybody in Leon, Spain, about four 
hours' drive from here, who was won- 
dering why foe bicycle rider who made 
the first attack in foe elite road race in 
San Sebastian looked so familiar and 
why he was smiling and waving at the 
camera — as if to say hello to friends — 
yes, that was Jon Vaughters. 

The American's acceleration off foe 
front of the world championship pack 
didn’t last long Sunday. After his 15 
seconds of fame in the fourth of 19 laps, 
he was overtaken and quickly became 
just another face in the crowd. But he 
had made his point: He was back. 

Spain is a nice place to visit, Vaughtos 
agrees, but be wouldn’t want to live here. 
Not after foe last time he did live here, in 
1996, when his bicycle team failed to pay 
him, when his boss was arrested on 

charges of importing heroin, when he 
crashed on foe first day of the biggest 
Spanish race and chipped his hip. 

That was it for him. 

He returned home to Denver, revived 
became foe top-ranked rider on foe 
American circuit and is on foe verge of 
signing with foe U.S. Postal Service 
team and resuming competition in 
Europe next year. 

Vaughters, 24, had a fine world 
championship, finishing 15th in foe 
time trial and working hard in the gruel- 
ing road race until he had to drop out He 
hadn’t expected to do better than that 
over foe 256 .5 kilometers (160 miles). 

“I don’t really have any aspira- 
tions," he said before the start, “be- 
cause I haven’t done a 260-kilometer 
road race since June or a training ride 
that long in two mouths. I haven’t done 
a race in six weeks — there’s nothing 
left in foe States.” 

While the season there was still on, he 

won foe U.S. time trial championship, 
the Cascade Cycling Classic, foe Mount 
Evans hill climb and foe time trial in the 
Redlands Classic. 

“Without boasting," he said, “I 
think I was the dominant rider on the 
domestic scene. 

“It’s gone superwell since I left 
Spain,” fie said. “I went with an or- 
ganization that's been very supportive, 
Colorado Cyclist Comptel. Once I got 
into a tranquil environment, what I was 
on foe cusp of coming around to in 1996 
was actualized." 

Still, he said, he was glad to be back in 
Spain. While racing for foe Santa Clara 
team from 1994 through 1996, he lived 
in Leon. 

“I was really looking forward to see- 
ing foe country again, seeing a lot of my 
old friends and saying ‘Hi* to the fam- 
ilies of my teammates. There's lots of 
good memories here.” 

There are lots of bad ones, too, he 

admitted. "No, I didn't get paid last 
year,” he said with a laugh, * 'and I don’t 
expect to, either. But I really gained a Jot 
out of foe experience. It was disorgan- 
ized and hard to find your best form with 
an organization like Santa Clara, but as a 
person, I grew a lot in those three years. 

“I learned a different culture, I 
learned how to be self-sufficient. On 
that team you had to be. It hasn't left a 
sour taste in my mouth — it was 
something I had to overcome and I think 
it made me tougher.” 

Although young American riders who 
come to Europe often have a difficult 
time. Vaughters’s experiences with Santa 
Clara, a minor Spanish team that has 
since disbanded, were especially dreary. 

“There was an inner struggle on foe 
team as to who was really in charge 

among the directewrs sportifs," or 
coaches, he said, “and sometimes I’d 
get taken to races at the last minute and 
sometimes I wouldn’t One directeur 
would tell me I was kicked off foe team 
because whatever, I was a foreigner or I 
was too — I don’t know what” 

Then there was foe unpaid salary. 
“Well, my salary wasn’t that high — I 
lost on the order of $ 1 0,000 or $15,000. 
They paid me the first two years, but it 
was spotty. I wouldn't do it now, but 
when I was 20 years old, it was OJK-" 
“Maybe I was just a little mo fragile 
mentally to deal with it and still ride ata 
professional leveL But it made me 
tougher. I've matured. 

“I really look forward to coming back 
to Europe next year with a well-organ- 
ized team. It'll be different anyway. ’ 

prime position to gain South America's 
last spot in foe France, routing Peru, 4-0, 
behind three goals by Marcel o Salas. 

With Argentina, Paraguay and 
Colombia already qualified, Chile 
moved into fourth place in foe regional 
qualifying group, ahead of Peru on goal 
difference. The top four South Amer- 
ican teams advance to foe finals. 

Chile can clinch a berth with a victory 
at home against Bolivia on Nov. 16 and 
can also qualify with a tie or loss if Peru 
stumbles in its home game against 
Paraguay that day. 

Ecuador beat visiting Bolivia, 1-0, to 
keep its slim hopes alive. Uruguay was 
eliminated with a scoreless tie in Ar- 
geqfjqa. j ..... . 

North America In. the: North .and Cen- 
tral American and Caribbean region, 
Mexico, which could have made sure of 
its place in Fiance with a victory, tied, 2- 
2, with Canada in chilly Edmonton, 
Alberta. Canada led by 2-1 before Ra- 
mon Ramirez scored for Mexico scored 
for Mexico in foe 85fo minute. 

(Reuters, AP) 

Ha# Britain 
The Lesson 

~~~ By Peter Berlin ■ 

Imernananal Herald Tribune . ' 

British officials moved rapidly ori A* 
Sunday and Monday to blame foe Itali- 
ans for the latest outbreak of violence 
involving English soccer fans. ' 
On Saturday, English fens battled the 
Italian police in Rome's Olympic sta- 
dium during foe World Cup qualifying 
match between Italy and England. “ 
The attitudes of Italian and British 
authorities suggest that they have 
learned very different lessons over tb£ 
last 15 years. 

In 1985, in the worst of many ex T 
amples of English soccer violence, 39 
Italian fens died in Brussels, attbeHeysel 


stadium, fleeing fans of Liverpool Eng : g 
fish clubs were banned from European* 

Perhaps the speed with which Eng- 
land's Football Association blamed tne 
Italians Sunday for selling the wrong 
tickets to English fens was motivated by 
a fear of being punished again. \ 
Nobody in Britain seems to think it 
odd that the English — alone of all 
nationalities — cannot be trusted to mix 
with foreigners. Also odd is the belief 
that if violence does result, the for- 
eigners should be held responsible. 

* That was not foe behavior of a civ- 
ilized police force,” said David Mellon 
who was once the minister responsible 
for the British police forces. 

Meilor is head of the government's 
soccer “task force” and foe host of $ 
radio phone-in show on soccer. Before f 4 
the match, be said English fens should 
not be treated like “cattle" in Rome. '/ 
This became foe mantra of foe English 
fans in Rome. As they neared foe stadium 
on Saturday they passed several check- 
points. At foe first, foe police checked 
tickets. “They're treating us like cattle^'? 
complained an English fen. 

At the second barrier, the police 
searched foe fans and confiscated a small 
moon tain of bottles. “They're treating 
us like animals, ’ 1 said another fan. , ; 

Inside the stadium,'"a‘feH7wiTfi~ia 
shaven bead and tattooed* earlobes was 
blocking a stairway. A policeman 
sfaoved faim. “They’re treating us like 
cattle," he said, adding ominously; 
“What do foey expect ’’Clearly, he felt 
he bad been provoked into violence. 

English fans were certainly taunted 
and pelted by foe Italian fens. The vasj 
majority did not retaliate. A minority did 
and continued to do so in spite of attempts 
by foe Italian police to stop them. 

The police tried to efrive foe fens 
back. A Knot of fans stood their ground. 
Unarmed and outnumbered, they kept , , 
hitting back. Those fans could hardly £ , 
have any complaint with the police’s 
reaction, which was to launch continued 
charges using riot sticks until they had 
established control. The Italian police 
woe heavy handed but it is difficult to 
blame them. The lesson they learned 
from Heysel is that English fans can be 
dangerous, even deadly. t 

The citizens of Rome, like those of 
France where foe next World Cup will 
be played, are terrified of English soccer 
hooligans. 1 

Meilor used to be the member of 
Parliament for Putney in London. If sev- 
eral hundred drunken yobbos had de- 
scended on his leafy constituency to / 
spend four days urinating in the streets 
abusing passers by and starting fights* 1 
with foe police and locals, would he have 
stood up so vigorously for their rights? 


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AL Championship 

BoKmora 014 MO 101-7 12 2 

amumo ezo 140 wn— a 13 0 

Erickson, Rhodes C5J, MBs (71 Oosco (9), 
A Benitez (9) and Wabstec Jr.Wright BrAn- 
denwi (4), Judea (7), Assenmoeher (71 
MJodcsan 07. Mesa (St and 5. Alomar. 
W-Mesa 1 -a L-MHfcO-1. HRs— Baltimore, 
By Anderson CO, Baines CT1 R. Pahneka 0}. 
Oevdaod, Ramirez (2k S. Alomar (1). 
Cta wtan d tends rates 3-1. 

NL Championship 


Atlanta CIS 0« 0Qfr-I 3 0 

RuUa 100 0M lta-2 S 0 

GJVtaddux, Cottier TO and EdtLPanz; 
LHemandez and CJohmon. W-L Hemm- 
Florida leads series £-2. 


NFL Standings 

0 7 0 MO 101 199 

1 0 .833 152 70 

4 0 333 94 127 

4 0 333 104 142 

5 0 3B6 110 US2 

5 0 .147 IQS 153 


Son Francisco s 

Carolina 2 

St. LOUb 2 

Newi Orleans 2 

Atlanta 1 

Atlanta 23, New (Means 17 
Now England 33. Buffalo 6 
Tennessee 3d Clndmafi 7 
Detroit Z7, Tampa Bay 9 
Green Boy 24, Chicago 23 
Miami 31, New York Jets 20 
JadksomrHe 3& PMladelpNa 21 
Minnesota 21, Carotha 14 
New Yoric Giants 27, Altoona 13 
San Frandsco 3a St. Louis 10 
Pittsburgh 24 Indiana pats 22 
Open dal* Baltimore, Denver. Kansas aty, 
OaktomL San Dtegcs Seattle. 

- The AP Top 25 


NHL Standi Mas 

New Jersey 
Tampa Bay 
N-Y. Wanders 


L T Ms 
1 0 10 
2 0 
2 0 
0 4 
2 1 
2 1 

2 0 


25 13- 

19 13 

13 12 

14 11 
12 11 







L T Pis 

2 2 6 

1 1 5 

3 1 5 

3 1 5 

3 0 4 

4 1 3 


14 17 

11 9 

15 17 
14 19 
13 19 

Michclob Championship 

Boom Sunday from *1.35 mlL Ntch o loh 

Ctnmpionehlp on 6,707-yanl, par-71 , Klngw 

mOI Goff CU’i Rhar earns In WHtaras- 
burg, YfrgMa, (»wOfl on flnrt playoff riolaj; 
x-DavM Duval, U.S. 67-46-71 -47—271 

Duffy Waldorf, U.5. 6169-69-7D-371 

Grant Waite, U.S. 69-67-68-67—271 

Fred Funk, UX. 6945-7049-273 

Scott Hocfv U-S. 70464949-274 

WrfcTriptatt US. 6648-70-71-275 

JlfflGdtaglK&Ua. 69-6B-7148-276 

John Cook, U-S- 694848-71—276 

Loren Robots. UJS. 7047-7149—277 

Payne Stewart U.5. 68-70-7049-277 


Top Twenty Five shim In A—OCtetod 





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1. Penn St (51) 5-0 1,734 2 

2. Nebraska (14) 5-0 U68 3 


0 4 0 

21 9 

18 11 
15 9 

15 16 
6 12 
5 20 

New England 











W L T Pet 
S 1 0 
4 2 0 
4 3 0 
3 3 0 
0 6 0 





Kansas City 
San Dingo 




5 1 0 
4 2 0 
3 3 0 
2 4 0 
1 5 0 

6 0 01.000 







176 80 
119 111 

177 137 
122 1 » 
88 1SS 

169 119 
145 160 
161 134 
114 133 
68 164 

1 Florida St. (3) 














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Los Angela 







7. Florida 




Sari Jose 







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9. Tennessee 











10. Washington 
















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12. Michigan Si. 





I 1 




NBA Pres Eason 

Cleveland 119, Minnesota 99 
Son Antonia 97, New York 90 
Miami in. Ptifladeiphki kd 
U tah 94, Doltas 88 
Denver 102, Golden State 88 
Phoenix 93. Vancouver 88 

MBwaufeHDt Sacramento 84 

World Cup 

0 Ml 
0 JOQ 

0 joa 

0 233 






Groan Bcrjr 
Tampa Bay 

4 2 
3 3 
3 3 

2 4 

mncHuu. cownmci 


W L T Pet 

3 2 0 400 

3 2 0 M0 

4 1 0 671 
2 4 0 J33 
I 5 0 .167 


5 2 0 .714 
5 2 0 .714 
5 2 0 J714 
4 3 0 .571 

190 85 
122 110 
102 126 
107 134 
151 148 


124 75 
90 73 
131 133 
111 137 
109 131 

168 149 
176 155 
140 T24 
160 129 

13. Washington St 54) 958 12 

14. Terns A&M 541 827 15 

15. lawn 4-1 703 17 

14. Oklahoma Si. 64) . 665 20 

17. UCLA 4*2 637 11 

18. Air Force 7-0 516 19 

)9.Geoitfa 4-1 446 13 

20. Kanos 5 1 4-1 388 22 

21. Georgia Tech 4-1 281 25 

22. Virginia Tech 5-1 274 23 

23. West Virginia 5-1 182 - 

24. Wisconsin 6-1 134 — 

25. Stanford .« m 16 

OthmsreceWng votes; Arizona St. 69# New 

Mex. 57, Toledo 46, Purdue 38 Wyoming 28 
VhgMa 30. Alt*, is Colombo 1£B. Young U, 
Mian* Oh. U,CUi.U.9, demean LMaMtaB 

CFL . 

Sundays Resett 
Edmonton 3a Winnipeg 2 

lit Periodi C-Mdnnfs 1 (Stfllman) 2d 
Period: D-toztov 3 (Pushob FeUsm) 3 C- 
SflDman2(MdimtaMorTW tp»). 3d Peris* 
C-SWman3 (Monts. MtifitfU.S, D-Kbzto*4 
(McCarty, YmmnO (pp).4D-> Shanahan 3 
(Udstronv Morphy) 7. D-Yzerman 1 (Urn*. 
ran Murphy) (pa). L C-Stfihnon 4 UgMn 
Titov) Shots sa gaflfcC- 9-9-1 ChO—is. D-B-16- 

Ottawa I 2 |_4 

1 h Anf*n I 3 j j- 

1st Parted: LArPenftautt 2 (Galley) Z O- 
Cmnyworth 1 (Bank. Hana) (pa). 2d 
Failed; 0-MdEadwm 2 (DotJulL YosWn) 4 
LA-Cfohrwm 2 (StumneL Galley) 5, Uu 
Poitou tl 3 (Mogen Rob Bated 6, O- 
McEadnm 3 (Ytahbri 7, LA.-Macl.ron 3 
(CJofmson, SturripcQ 3d period: O- 
Urottanen .2 (Yashin) 9, Las Angeles, 

. RaUtatae 3 (Berg) id UL-Stumpel4 (Bag) 
11, LA^Mumqr 2 (Stumped tent Shots oa 
goal: O- 9-9-7— 2S. UL- 15-13-13—41 . 


Argentina a Uruguay 0 
Chile 4 Pen 0 
Ecuador 1, Bolivia 0 
Pomg uay 1, . Vaw zueta 0 
»»ndbio*s Argentina 29 points Pari 

^ 0,88 a p*™ a Eci 

ador21; BaMo 1 7; Uruguay IB; Venezuela i 
Mexico Z Canada 2 

■sgaa 1 

Intend «. Betgtum 

aonttaw-Utoaine * 

Hungary v*, Yugoslavia ! 

Russia Italy > 

Matches on Oct 29 and Nov. 1$. ' 

■UIOIIUhi ' 

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PAGE 21 




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''Marlins Win 

With Help 
Of Generous 
Strike Zone 

By Buster Olnev 

New iifft Times Service 

<*** !■* :-i 

MIAMI — Livan Hernandez, pitch- 
ing only because the Marlins’ best 
pitcher couldn t, spun a curveball to the 
Atlanta slugger Fred McGriffm the fust 
inrunfi, and it plopped into the glove of 
catcher Charles Johnson six inches to a 
foot or so outside. A strike, according to 
,d» home plate umpire, Eric Gregg 
!*•. The rookie kept throwing curvfballs 
t ttedfestbaUs six inches to a foot outside 
Sunday. Gregg kept calling them for 

Pretty soon Hernandez had a record 

Jacksonville Backup 
Scores 5 Touchdowns 

Stewart Brings Down the Eagles 

•.TUt *>■- 
/ X a .• 




! • , 




-■"if-' v. 



fe-i .■ 

_ Maddux, 2-1. The Braves sk£k 
qff to their clubhouse angrily, furious 
Shoot Gregg’s strike zone, trailing in the 
National League Championship Series 
_ . three games to two. 

Atlanta can survive only by winning 
T : Gaines 6 and 7 ai home Tuesday and 

Wednesday, with Tom Glavine and John 

Smoltz pitching. Kevin Brown, sick 
with the flu, is now scheduled to pitch 
. Game 6 for die Marlins, with a chance to 
, ./j, ■ '.send the Braves home for the winter, 
• Tljgrambling about umpiring. “It was bad 
. tftday, it was bad,” McGriff said 

Above all, pitchers and hitlers de- 
! inand consistency from an umpire, and 

- Gregg’s strike zone was consistent, if 
bizarre: For right-handed batters, he 

- generally called strikes on pitches an 
. ' juch or two off the outside edge of the 

plate. But for left-handed batters, his 
' strike zone was a little bit higher- than 

■' normal, and anywhere up to a foot out- 
side, based on replays. 

The circumstances created a distinct 
; disadvantage for the Braves — the first 
six batters in the Atlanta lineup batted 
left-handed, while only three hitters in 
the Florida lineup hit that way. 
Left-handed batters for both teams 
"■ , kept stretching across home plate and 
~ I swinging weakly, reaching for pitches far 
•f outside the strike zone that they feared 

- ’would be called strikes — and often were. 
After Kenny Lofton's triple in the first 
^ning. not one Atlanta left-hander pulled 
a baft to the right side of the field. 

: ' Y “I swung at pitches that were a foot 

- bbtside,” Chipper Jones said. “I turned 
around and asked if they were strikes, 
and he said yes. 1 couldn t help but give 

“ p little chuckle.” 

' ' Gregg said, “If you know me, you 
know my strike zone. I'm consistent on 
both sides of thar strike zone. Fve b$en 
"" :«tat way for 25 years. Next question.” 
Hernandez struck out at least one bat- 
ter each inning. Ins 15 strikeouts set 
a National League championship ret 
and tying the one-day-old mark, set Sat- 
urday by Baltimore's Mike Mussina. 

. Maddux, seemingly best suited for a 
^".e zone like Gregg’s because of his 
lardinary control left a changeup a 
too high to Bobby Bonilla, ufio 
“whacked it to center for his second hit of 
the series and the first run of the game. 
Michael Tucker horaered for Atlanta 
off the second, tying the game at 
1. and for the next five innings Mad- 
exploited the strike zone. 
t . But Bonilla reached second when his 
1 fine drive in the seventh fell out of Tuck- 
t*‘s globe as the outfielder hit the wall 
\ Jeff Conine then hit a single through 
the middle, scoring Bonilla. 

^ l>W|; OWn/Thr laMirulpd (Vna 

Tne Indians’ David Justice, left, and Sandy Alomar, right, both scoringon a wDd pitch by Arthur Rhodes. 

Ahead 3-1, Indians Are Laughing 

By Thomas Boswell 

Washington Poser Service 

C LEVELAND — The Cleveland 
Indians all but pm their hands and 
their gloves in front of their faces 
so they could hide their grinning mugs. 

They were snickering, laughing at the 
Baltimore Orioles in general and their 
platoon catcher turned pratfall comic, 
Lenny Webster, in particular. How often 
to do you get to watch two of your runners 
score on a wild pilch that never gets more 
than 15 feet from home plate? 

However, the wily Indians didn't 
want to let die Orioles know how much 
they were enjoying the slapstick. When 
you’re just one win away from the 
World Series, you don’t want to wake up 
the other guys, especially when the fa- 
vorites are so flummoxed that, if you just 
leave them alone, there’s no telling what 
they’ll do to immolate themselves. 

The Indians deeply want revenge far 
being upset by Baltimore last October 
when they had the best regular-season 
record in baseball. But they don’t want 
to show it. Not yeL The laughingstock’s 
on the other foot 

The bad news fir the Orioles is that, 
after Sunday night’s 8-7 loss in Game 4 
of the American League Championship 
Series, they trail three games to one. The 
good news is that with any lnck, the 
Orioles can get a sitcom on a major 
network next season. If the Indians don't 
do anything to interrupt the Orioles’ 
comic timing, they may have a pendant to_ 
fly-ovefhom Hela'fijrMtork&y fcigftt. 

On Sunday, die Orioles, lost in the. 
bottom of the ninth on a two-out line- 
drive single up die left-center field gap 
by Sandy Alomar. It was also Alomar 
who earlier scored all the way from 
second base on that goofy wild-pitch 
sequence to provide the most crucial run 
of the game. 

Reliever Armando Benitez gave up 
that game -losing blow, just as his three- 
run gopher ball to Manny Ramirez lost 
Game 2. Still, the Orioles set up the 
Cleveland win in a manner consistent 
with their play here. Alan Mills walked 
the leadoff man in the ninth after getting 
ahead in the count 0-Z 

Benitez should never have been in die 
game, of course. Randy Myers should 
have been trying to get the save, because 
the Orioles should have been ahead 7-6, 

not tied 7-7, entering the ninth. Why? 
Because you’re really not supposed to 
allow two runs to score on the same wild 
pilch. Especially when the ball never gets 
more than a few steps from home plate. 

oles. They can blow a 4-2 lead at the end 
of one game, as they did in Camden 
Yards in Game 2. Or, as was the case 
Sunday night, they can squander a 5-2 
midgame lead after bombing the Tribe 
with a three-homer inning. Many teams, 
however, can perform those feats. The 
Orioles are now unique in postseason 
annals. They’re groundbreakers. 

“That’s die first time I ever saw two 
men score on a play like that, especially 
when the ball never gets that far away 
from die plate,” said Davey Johnson, 
the Orioles manager. “Somebody's 
mess in’ with fate. That’ s how I figure it 
But this ballclub has a lot of strong 
backbone. Momentum can change. I’ve 
been behind by two runs and down to the 
last strike and still won, so don’t tell me 
about fate. We got a ways to go yet ” 
Speaking of Bill Buckner’s error 
against Johnson’s Mets in the 1986 
World Series, is it possible that Johnson 
has used up his supply of slapstick good 
luck and now is on the other end of the 
October comic relief? At the least, he's 
now got a catcher who can do for loose 
balls near die plate what Buckner did for 
the routine 15-hopper to first base. 

I n die past two games two pinches have 
bounced away from Webster. Both- 
tanes, the score was tied. One ball 
bounced nine feet die other aboQt 15 feet 
Atotaloffireeruns scared, and twogames 
were lost Soon, Qevdanders should have 
a T-shirt diat says: “Webster Saves. But 
the Indians Score cm the Rebound.” 

On Saturday, Webster did nothing as 
the winning ran scored. He thought the 
slider that bounced our of his glove at 
ankle height had been a fool-tip suicide- 
squeeze tent by Omar VizqueL No need 
to chase it dead hall. Wrong. 

Webster might well have stopped the 
run had he not stopped himself. Sunday 
night, however, Webster & Co. sur- 
passed themselves. They had this whole 
town in stitches. Clevelanders say: 
Keep the Ravens, just send us the Ori- 
oles every October. 

The sight that unfolded in front of the 
Indians’ dugout was worthy of Larry, 

Moe and Curly. With the score 5-5 in the 
fifth inning and the bases loaded, Arthur 
Rhodes threw a pitch in the din. Web- 
ster blocked fie ball but couldn’t keep it 
from trickling a few steps toward the 
Indians' dugout 

If Webster had run to the bail, grabbed 
it and thrown it in one motion — any 
motion — toward Rhodes, David Justice 
would have been out But Webster froze, 
as he froze Saturday. For agonizing split 
seconds be debated wifi himself how to 
project the ball to Rhodes before deciding 
(xi something resembling a basketball 
chest pass. The awkward toss seemed to 
move in slow motion while Justice ran at 
full speed. Not only was Justice safe, but 
his slide turned Rhodes and the ball into a 
win dmill of arms and legs. The baseball 
ricocheted out of the mess and trickled a 
few steps from the plate. 

By now, fie Indians had their part in 
the fire drill down pat: KEEP RUN- 
NING. These are the Orioles, and there’s 
a loose ball around home plate. By the 
tune Rhodes could flip the boll to the 
plate. Alomar had already arrived, and 
another Indian was rounding third base. 
But by now. Cal Ripken was covering the 
plate. Another Oriole might have found a 
way to kick the ball into the seats for the 
grand slam of wild pitches — one that 
cleared the bases. Ripken, the spoilsport, 
simply caught fie tell and bought fie 
merry-go-round to a boring halt 

The Associated Press 

James Stewart, a backup running 
back, made fie most of bis opportunity 
to play. 

He filled in for the injured Natrone 
Means, and became the fourth player to 
rash for five touchdowns in an National' 
Football League game in the Jackson- 
ville Jaguars' 38-21 victoiy Sunday 
over the visiting Philadelphia Eagles. 

“James certainly answered fie call,' ' 
said Tom Coughlin, Jacksonville's 

Stewart ran for 102 yards on 15 car- 
ries. He scored on runs of 7, 8 and 2 


yards in the first quarter as the Jaguars 
took a 21 -0 lead, then added two 1 -yard 
scores in the second half. 

Stewart is the first player to rash for 
five TDs since Buffalo’s Cookie Gil- 
christ on Dec. 8, 1963, against fie New 
York Jets. 

Ernie Nevers and Jim Brown are the 
only other players who have at least five 
rushing touchdowns in a game. Nevers 
holds the NFL record with sue. 

Stewart gave fie ball from his fifth 
touchdown to Means. The extent of 
Means’s injury was not immediately 

“You hate to see your partner go 
down,” Stewart said. “He’s been there 
for me, and I’ve been there for him.” 

Stewart has endured plenty of crit- 
icism in his two years in the National 
Football League. As a rookie, he was 
booed for not producing 100-yard rush- 
ing games on an expansion team with a 
patchwork offensive line. 

He was blamed for last year’s 20-6 
loss to New England in fie American 
Football Conference championship 
game when his fumble was returned for 
a touchdown. 

“It was hard on James, but James 
doesn't take it off the field,” said the 
Jaguars’ left tackle, Tony Boselli. 

Packers 24, Bears 23 Chicago failed 
on a 2-point conversion wifi less than 
two minutes to go and lost by one point 
to visiting Green Bay. 

The Bears pulled within a point with 
1:54 to go on Erik Kramer 22-yard 
touchdown pass to Chris Penn. Dave 
Warms ted t, fie Bears* coach, went for 
the lead, but Kramer's short pass sailed 
over Raymont Harris. 

•Brett Favre threw three touchdowns 
for Green Bay. 

Robitaille’s Return Pays Off for Kings 

The Associated Press 

Luc Robitaille, a player Los 
Angeles Kings fans thought was gone 
forever, returned home in a big way. 

Robitaille scored fie go-ahead goal 
in the third period to help fie Kings 


win their home opener, 7-4, against 
the Ottawa Senators on Sunday 

After the game, the Senators re- 
vealed that Daniel Alfreds son, the Na- 
tional Hockey League's rap rookie in 
1995-96, had ended his holdout by 
signing a long-term contract. 

Alfredsson was reportedly seeking 

$7. 1 million over two years. The Sen- 
ators were said to be offering $16.1 
million for five years. 

Robitaille and Jozef Srumpel, an- 
other off-season acquisition, scored 
20 seconds apart in fie third period to 
give fie Kings their first victory of the 

Flam** 4, Rwf Wings 4 In Detroit, 
Cory Stillman’s first career hat trick 
helped Calgary stop Detroit's four- 
game winning streak as the Flames 
and Red Wings skated to a tie. 

Stillman scored his third goal of the 
night wifi just S4 seconds left in reg- 
ulation time, forging the tie after the 
Red Wings took a 4-3 lead with three 
straight goals earlier in the period. 

VBdnga 21 'Panthers 14 In Minneapol- 
is, Brad Johnson, fie Minnesota quar- 
terback, threw two TD passes — one to 
himtrff — as the VDdngs beat Carolina. 

Johnson’s p as s and catch came at the 
end of a 17-play, 91-yard drive. His 
throw was batted down by Greg Kragctt, 
but it bounced right back to Johnson, who 
Michael Barrow in fie baekfield 
and scrambled 3 yards for fie score. 

Falcons 23, Saints 1 7 In New Orleans, 
Chuck Smith ted five sacks, and Morten 
Andersen booted three field goals to 
lead Atlanta to its first victory under 
coach Dan Reeves. 

Andersen, a former Saint, hasn’t 
missed a field goal in fie Superdome 
against New Orleans in eight tries. On 
Sunday, he connected from 25, 32 and 
55 yards. 

Dolphins 3i, Jots 20 In East Ruther- 
ford, New Jersey, Dan Marino threw for 
372 yards and two touchdowns to snap 
New York’s three-game winning streak. 
Marino hit 27 of 38 passes for his most 
yardage against fie Jets since 1989. 

49m 30 , Rams io Steve Young threw 
three touchdown passes, and San Fran- 
cisco forced three fumbles and blocked a 
punt in winning its fifth straight game. 

The host 49ers scored 20 points off 
Sl Louis miscues en route to their 15th 
consecutive victory against the Rams. 

Young, who was 19-of-30 for 223 
yards, completed his first 10 throws, 
including touchdown passes to Tetrell 
Owens and Greg Clark. 

aimts 27, Cardinals 13 Danny Kanell 
got a big assist from Tyrone Wheatley, 
who ran for 103 yards and scored a 
touchdown as New York won in 
Phoenix, Arizona. 

Kanell, starting his first game in place 
of fie injured Dave Brown, finished 13- 
of-28 for 198 yards and a touchdown, 
and the Giants romped to their third 
straight victory under Jim FasseL who 
was offensive coordinator last year for 

stoaisra 24, Colts 22 In Pittsburgh, 
Mike Tomczak, who replaced fie in- 
jured Kordell Stewart as Pittsburgh's 
quarterback near the end of the first half, 
nit Courtney Hawkins on a 28-yard 
scoring pass, and Pittsburgh withstood 
six turnovers to beat Indianapolis. 

The Colts blew a 10-0 lead, then 
nearly pulled off a comeback as Jim 
Harbaugh threw a 5-yard touchdown 
pass to Brian Stablein wifi 3:35 remain- 
ing. But Chris Oldham batted away the 
potential tying 2-point conversion miss. 

OHm 30, Bsngats 7 In Memphis, Steve 
McNair, Tennessee’s quarterback, threw 
for = 199 yards ■and. three touchdowns as 
the Oilers broke .their four-game losing 
streak by beating" Oncinnati. 

The Oilers sacked Jeff Blake six times. 
He threw for only 130 yards with just one 
complete pass in the second half before 
being replaced by Boomer Esiason. 

In games reported in late editions 

Lions 27, iweuiMn • Barry 
Sanders, who was held by fie Bucs to 20 
yards on 10 carries in the second week 
of fie season, ran for 215 yards on 24 
carries as Detroit won in Tampa. 

Sanders scored on runs of 80 and 82 
yards — the longest TD bursts of his 
career — and also caught a 7-yard 
touchdown pass from Scott Mitchell 

P atrio t * 33, BUi« B Drew Bledsoe 
threw two TD passes, and Curtis Martin 
ran for 99 yards as New England beat 
visiting Buffalo. 





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R PAGE 22 




1 Monkey Business 

▼ ▼ spite what you read in 
ge newspapers, die White 
House isn’t as well organized 
as people think. 

I discovered this when I 
asked Daniella 
runs the White 
House? 1 ' 

She replied, 

“The Marx 
Brothers: They 
are all over the 
place and no- 

if" Buchwald 

where they 11 
pop up next. Remember when 
Hillary Clinton’s files turned 
up on a third-floor desk?” 

“I remember it well.” 

“Groucho discovered 
. them. The FBI had been 
searching everywhere, but 
the White House denied that 
the time sheets existed. So 
while Groucho was hiding 
behind a curtain smoking a 
cigar, he spotted the file and 
turned it over to the pres- 
ident’s lawyers.” 

‘‘Was the president 

“No, because as he has 

$10 Million Is Asked 
For al Fayed Home 

The Associated Press 

late Dodi al Fayed’s Malibu 
mansion is up for sale for S10 
million. Al Fayed, who died 
in a car accident in August 
with Diana, Princess of 
Wales, bought the estate in 
June from the Florida in- 
vestor Edward Sacks for 
about S7.3 million. 

Sacks, who turned the main 
house into a 9,000-square- 
foot (836-square-meter), six- 
bedroom Tuscan villa, bought 
the property from Julie An- 
drews and her husband, Blake 

said, time and time again, a 
found file is better than no file 
at all. You have to understand 
that the White House is a very 
large building and no one can 
keep track of anything that 
goes on there.” 


‘ * Has Zeppo been in on any 
of the discoveries?” Z asked 

“No he ‘hasn’t He’s in 
charge of making coffee for 
visiting dignitaries. The 
White House has a lot of 
people drop in on the pres- 
ident, and almost all of them 
expect a decent cup of coffee. 
Zeppo’s coffee is famous 
throughout the Far East” 

“What about Chico?” 

“Chico is in charge of sup- 
plying quarters to Vice Pres- 
ident Gore whenever he 
wants to make a telephone 
call. Every tune Chico runs 
out of coins, he kicks the tele- 
phone and money comes tum- 
bling out He also amuses the 
White House staff by pulling 
quarters out of his ears.” 

“So that only leaves 

Daniella said, “Yes. 
Harpo holds die most impor- 
tant job in die White House 
because he has to keep his 
mouth shut when any me asks 
a question about fund-raising. 
He’s appeared in front of sev- 
en congressional committees 
so far and whenever they 
asked him a question about 
who slept in the Lincoln Bed- 
room, he began to play his 

"Did the Marx brothers 
have anything to do with the 
coffee videos?” 

“They actually found them 
before anybody else did and 
this made the president furi- 
ous because be wanted to give 
them personally to Janet 

In Azerbaijan, Poets Tear the Fences Down 

By Stephen Kinzer 

New York Times Service 

B AKU, Azerbaijan — In the cen- 
tral square of this stately capital, 
facing an 800-year-old fortress that 
overlooks the Caspian Sea, a pan- 
theon of six larger-than-life statues 
towers above die bustle of daily life. 

The figures are not of ancient ad- 
venturers, conquering generals or for- 
gotten commissars from the Soviet 
era. They are ofpoets. And they stand 
as guardians of a tradition that has 
thrived in Azerbaijan for centuries. 

Throughout Baku and the Azer- 
baijani countryside, poets are 
honored wife statues, plaques, me- 
morials and museums. Drama and 
prose fiction are relatively new forms 
here, but poetry is the great national 
art, the language of philosophers and 
also of common people. 

Azerbaijan’s poetic heritage is so 
vibrant that it even seems to have 
survived 70 years of Soviet rule, a 
period during which the intellectual 
class was ravaged by purges and poets 
were sent to die in distent jails. Perhaps 
the brightest literary Kght here now 
shines from a small but comfortable 
apartment in an outlying section of 
Baku where Bahtiyar Vahabzade lives 
and works. 

Vahabzade has published more 
than 40 books, most of them collections of poetry. His most 
recent one appeared last year in an edition of 50,000, 
unheard of in mis small and poor country. It was sold out 
within a week. 

In a long conversation one recent evening, Vahabzade 
reflected on his life, his art and the mortal dangers of Hying 
to survive as a creative artist during years of tyranny. As he 
spoke, his wife served pin, a traditional Azerbaijani stew 
prepared in individual clay pitchers and made of lamb, 
chickpeas and plums. With each new theme, another dish 
emerged: roast chicken, fried onions, vegetable fritters, 
yogurt with minced cucumber, grilled peppers, leek and 
parsley stalks; pickled eggplant, mutton cutlets and assorted 
cheeses, breads, cold cuts and liquors. 

Vahabzade, whose unruly shade of graying hair was set 
off by a neatly pressed white shirt, spoke of ms roots in the 
Turkic literary tradition that stretches back to 1 ‘The Book of 
Dede Korkut,” a 10th-century epic that has been compared 
to the Iliad. On his bookshelf are pictures of his heroes, from 
the Turkish nation-builder Mustafa Kemal Ataturk to his 
friend Yevgeny Yevtushenko, the Russian poet who has 
translated ms works into Russian and whose works he has 
translated into Azerbaijani 

Bahtiyar Vahabzade has published more than 40 books, most of them poetry. 

“For years we were supposed to write poems that cel- 
ebrated the tragedy which overwhelmed us,” Vahabzade 
said. “It was a terrible period, and many people did not 
survive. Z never knew when they would come to take me 
away. But in the end, our poetic tradition has emerged alive. 

It is recovering. Young poets are writing very beautifully 
now. I think the world will know about us once again.’ ’ 

Two vivid examples of die fate that can overwhelm poets 
in repressive societies hang over Vahabzade’s career. 

One is that of Hussein Javid, a towering figure in 
Azerbaijani literature, who refused to conform to Soviet 
ideals and who was arrested by the KGB in 1937 and sent to 
his death in a Siberian labor camp. The other was the late 
Sained Vurgun, a teacher and mentor of Vahabzade, who 
wrote some fine poems but also much low-grrfde pro- 
paganda praising Marx (“His genius dug King Capital's 
grave!”) and Lenin (“Who Communisnvs flag unfurled/ 

And first brought spring into die world!”). 

Seeking to find a path between the different kinds of death 
that cut off the careers of Javid and Vurgun, Vahabzade 
often wrote poems cloaked in allegory. He was deeply upset, 
for example, about what he viewed as Soviet attempts to 
crush the Azerbaijani language, and wrote a poem glorifying 

“The inngnagft which has come 
through centuries/ Its people dead/ 
But the language itself survives. 

The poem’s title, however, is 4 ’Lat- 
in." When KGB agents, who evid- ■ 
ently understood its Qrue meaning, 
summoned him for interrogation, he ■ 
was able to say disingenuously that he : 
had not intended to crake any political •' 

In 1952, after making what he . 
thought were private remarks dispar- 
aging Stalin, vahabzade believed that * 
he was about to be arrested. When he _ 
heard a car stop in front of his house 
before dawn one day, he thought his - 
time had crane and frantically burned * 
a cache of his poems to destroy ev- 
idence he thought might be used * 
agains t him. 

It turned out that the car was not ■ 
carrying the police, but his poems " 
were lost The episode forms the basis 
for a new screenplay called “Fear,” 
written by an Azerbaijani dramatist 
and now being made into a film. 

Today Vahabzade is a beloved fig- 
ure in his homeland, not simply a * 
creative artist but also, 'since inde- 
pendence in 1991, an independent 
member of Parliament respected by 
' both the ruling party and the oppo- 
sition. A statue of him will probably ' 
stand in Baku someday, but at 72 he 
remains vigorous and fell of plans. 

“In 1930 there were anti-Soviet riots in Baku,” ne said. * 
“The soldiers who were sent to crush the riots killed 10,000 ' 
people here. I am now working on this theme.” 

For several months each year, Vahabzade retreats to his 
native village of Sheki in northern Azerbaijan, where he has - 
no telephone and gathers inspiration from nature and peas- 
ant life. He usually writes at night, which he calls “the time 
when I can achieve dialogue with myself. ’’ 

Classical music is one of his great passions, and he says be . 
cannot survive without hearing Beethoven’s Ninth Sym- 
phony every morning. 

A volume of Engush- language selections from Vahabz- 
ade 's work, mostly poetry but also including four stories and 
a short play, has just been published by Indiana University 
Turkish Studies Publications. One of the poems, written in 

Sum R. WlotaflT* New Yurt. Tunc* 

poems, wn 
these lines: 

1965 but kept hidden for years, includes 

Come, tear the' fences down , demolish the ramparts 
So that our eyes t an gaze at distant parts. 

Haw can rooms contain the heart that must live free: 
It should leap over hill and valley on and on. 

So long as my eyes possess the power to see, 

/ shall keep scanning the wide horizon. 

j :f 







Karloff to Hoffman: Heroes and Villains 

By Bernard Weinraub 

New York Times Service 

L OS ANGELES — “Five Star Fi- 
nal,” made in 1931, the same year 
as “The Front Page,” depicts a thor- 
oughly despicable reporter who lies, 
steals and pretends he’s a clergyman to 
set a story. The journalist is played by 
Boris Karloff. 

The image hasn’t changed that much 
in Hollywood. 

In "Mad City," which opens in die 
United States next month, Dustin Hoff- 
man plays an ambitious and cynical 
television reporter who exploits a hos- 
tage takeover of a museum by an un- 
employed security guard (John Tra- 
volta) who wants only his job back. 

The screenwriter, Tom Matthews, 
who used to be a studio publicity writer 
and the editor of Boxoffice, a trade 
magazine, said he began working on the 
film after watching the Branch Davidian 
confrontation in Waco, Texas, on tele- 
vision in 1993. 

“Nothing was happening for weeks, 
so the news organizations, to justify die 
fact that they sent all these reporters 
down there, began indulging in an 
amazing amount of speculation and 
guesswork,” Matthews said. “I thought 
it was well worth pursuing a reporter, 
inside a hostage situation like that, who 
wants to play this story out and send his 
own career skyrocketing.” 

To Matthews, the director Constantin 
Costa-Gavras and Arnold Kopelson, 
one of the producers, the debate about 
the news media's role in the life and 
death of Diana, Princess of Wales, has 
somehow made their film seem eerily 
prescient. "The media became the sto- 
ry; they crossed the line," Kopelson 
said. “In the film, Dustin Hoffman says, 
‘Idon'twant to cross the line; I just want 
to move it a little bit.’ *' 

Hollywood’s ambivalence in its por- 
trayal of journalists is evident in films of 
the 1930s and ’40s. Stars like James 
Cagney ("Johnny Come Lately”), Bar- 
bara Stanwyck (“Meet John Doe"), Ed; 
ward G. Robinson (“Five Star Final"), 
Lee Tracy (“Blessed Event”) and Pat 
O’Brien (“Tbe Front Page") played 

working-class journalists who were 
funny and shrewd and had few illusions 
about politicians and the rich. The re- 
porters were characters with whom 
audiences could identify. (Katharine 
Hepburn in “Woman of the Year” and 

Rosalind Russell-in “1 

were decidedly upper class.) Yet even in 
those classics, journalists’ behavior was 
often marked by ruthless ambition and 
even lying. 

“In fee '30s and '40s, people loved 
reporters — they were cynical and tough 
and hard-edged, and that made for com- 
edy and good lines,” said the critic 
Pauline Kael in an interview. “By the 
70s and ’80s, after reporters became 
heroes, there was almost a reaction 
against them, a swing after ‘All fee 

Hollywood’s ambivalence 
in its portrayals is 
evident in films of the 
1930s and 5 40s. 

President's Men.’ Reporters were no 
longer wisecracking; they took them- 
selves very seriously.” 

Films that presented real-life jour- 
nalists as heroes were “All the Pres- 
ident’s Men” (1976), wife Hoffman and 
Robert Redford playing Carl Bernstein 
and Bob Woodward of The Washington 
Post, who covered the Watergate break- 
in, which eventually led to the resig- 
nation of President Richard Nixon, and 
"The Killing Fields” (1984), in which 
Sam Waterston plays Sydney S chan- 
berg, then of The New York Times, and 
which depicts his friendship with his 
Cambodian interpreter, Dim Plan. In 
Peter Weir’s “Year of Living Danger- 
ously," Mel Gibson plays a somewhat 
down-at-fee-heels reporter in Indonesia 
covering events leading to the coup at- 
tempt against President Sukarno in 

These films came along in the af- 
termath of fee Vietnam War and the 
Watergate break-in, years in which lies 
and deceptions of government officials 
were often revealed by journalists who, 

in some cases, turned into celebrities. 
Yet Hollywood studios, perhaps reflect- 
ing fee current mood, have {resented a 
bleak view of journalists in recent years 
—though less as villains than as spoiled 
and arrogant elitists, in contrast to the 

or Stanwyck. Hoffman has, tellingly, 
followed this trajectory, portraying the 
journalist as hero 21 years ago and, in 
his latest role, the devious reporter in 
"Mad City.” 

“There’s a deep ambivalence in 
movies, tilting toward the dark side,” 
said Tom Goldstein, dean of fee 
Columbia University Graduate School 
of Journalism and a former reporter far 
The New YorkTimes.* ‘They’re usually 
not heroes or antiheroes. More often 
they're unappetizing figures: they're 
rude, often untrustworthy — some of 
fee worst traits feat journalist* occa- 

— II.. gjj 0W ^ irfe." 

Hollywood’s harsh view of journa- 
lists helps form public perceptions, 
Goldstein said. On fee other hand, he 
said, polling data indicate feat public 
trust in journalism is dropping. 

The dark side cited by Goldstein is 
evident in “Absence of Malice" 
(1981), in which Sally Field plays a 
reporter who is duped into printing a 
story that discredits fee character played 
by Paul Newman and then retreats be- 
hind fee shield of freedom of fee press. 

Costa-Gavras, fee director of “Mad 
City,” whose films often tackle con- 
politics and social issues, 

T HE Welsh poet Dylan 
Thomas, whose reputa- 
tion spanned die Atlantic, did 
not drink himself to death as 
legend has it, but died as the 
result of a doctor’s error, ac- 
cording to a book to be re- 
leased this week. Thomas died 
in 1953 at fee age of 39. Of- 
ficially, the cause of his death 
in a New York hospital was 
“acute alcoholic poisoning” 
after a bout in which Thomas 
was said to have drank 18 
straight Bourbons. But British 
newspapers reported that fee 
new bode, “The Death of 
Dylan Thomas” by fee British 
biographer George Tremlett 
and a North Carolina neuro- 
surgeon, James Nashold, will 
contend that Thomas was nev- 
er as big a drinker as he was 
reputed to be. They say fee real 
cause was that his U.5. phy- 
sician, Milton Feltenstdn, 
mistook a diabetic coma for a 
drunken stupor and wrongly 
prescribed a course of injec- 

_ Mkfead Ln/Tbe Aaodaad Piwi 

□ BEAUTIFUL HAIR DAY — Arinin Knapp (left) and his brother Gerhard won 

soring of hit top awards in the most beautiful beard competition in Pforzheim, Germany; 
ins the recent 


ingly relevant ana complex. 

“Our lives are more and more about 
the media — we learn through fee me- 
dia; we buy through the media; we com- 
municate through the media," he said 
from his home in Paris. “The media is 
everywhere, for good or bad. It's like a 
hammer. If a hammer hits you on the 
thumb, you don't blame fee hammer; 
you blame fee person who holds fee 

“We keep saying, ‘fee media, the 
media.' Who is the media? The media is 
people. Some do good jobs; some do 
less good jobs; some do awful jobs. ' ’ 

Despite a 
movies, including 
blockbuster “Face/Off,” John Woo 
says he’s terrified to be center stage. 
"Two things scare me in life: One is 
having an interview in front of the cam- 
era; fee other is gening an award," fee 
Chinese-born, Hong Kong filmmaker 
said after receiving a Golden Ring 
Award in San Francisco from fee Asian 
American Arts Foundation. “I. have a 
speaking problem — and I don't even 
speak well in my own language,” he 
said, adding that he manages to get by 
using fee two words most important for 
a director “Action" and “Cut” 

Oliver Stone, class of '71, came back 
to New York University, bringing a pair 
of mature-looking spectacles, a bushel 
of books and afew hard-learned lessons. 
“Do your homework." Stone told 
today's film students, responding to a 
query about “shedding fee light on 
truth” from an earnest young man in a 
stocking cap. “Read another version,” 


Stone said. “Test yourself." He paused, 
and then added, “Because this is serious 
business.” The man who has made a 
careerout of bucking conventions some- 
times sounded positively restrained. 
“The truth is very tricky in this life, very 
elusive, especially when it comes to 
contemporary issues,” Stone said. 
‘ 'People have a stake in it and it’s fought 
over like a civil war. So be careful." 

About 5,000 people attended the 
opening night of Verdi’s “Aida” at an 
open-air theater in Luxor, Egypt, wife 
fee temple of Queen Hatshepsut 
providing a dramatic backdrop. The op- 
era. is being held as part of festivities 
marking fee 75th anniversary of fee 
discovery of Tutankhamun’s tomb in 
fee Valley of the Kings. The soprano 
Wilhehmna Fernandez and the tenor 
Guiseppe Giacomini sang fee lead 
roles, and fee Cairo opera orchestra was 
led by Anton Guadagno. 

Janet Jackson hasn't spoken to hex 
brother Michael in more than two years; 
and she hasn’t even met her nephew 
Prince, bora in February to her famous 
sibling. Jackson told Vibe. Magazine 
that Michael's friends and family were' 
invited to his ranch to meet his new sou, 1 
but that she was so tied up wife a new 
record, she was unable to attend. 



As Whitney Houston and hubby, 
Bobby Brown, dined together in af 
'private room at fee Goldoni Ristorante in 
Washington, their six security guys were 
on the sidewalk hustling the restaurant's 
valet paxker right off his post as a se- 
curity risk. Diners had to find other parki 
ing, said Goldoni’s general manager; 
Julian Russell. Houston and Brown are 
“lovely, lovely people," he said, “but 
this was a little overpowering, even for 
Washington. I think when fee president 
came here he had two Secret Service' 
agents inside the restaurant wife him. " .* 

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I love 0-800-99-0011 

in the springtime. 

Every country has its own AT&T Access Number which 
makes calling home or to other countries really easy. 
Just dial the AT&T Access Number for the country you're 
calling from and you’ll get the clearest connections 
home. And be sure to charge your calls on your AT&T 
Calling Card. It'll help you avoid outrageous phone 
charges on your hotel bill and save you beaucoup de francs 
(up to 60%*). Check the list for AT&T Access Numbers. 

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ATAT Access Numbers 

EUROPE """ “• ! 

mmSSo az-soMti ■ 

BUfllum* MaMlMi: 

- V.l35 A g*™ * .HSWHfl ; , 

Snmm -JMM-1I11 - $' 

wirtB i -www-081 • ■ 

•• ■ lt*l»« 172-1*11 ; 

MMutae N00-8224111 - 

J Rnsls*A[MQU8v)i 755-3*42 , 

Step! to follow for easy Spain 9BMM0-11 • 

coDing woridvide .*25-7S6-«1 ; 

S wttzartud • .08*0-88-011 * 

l. Just dial die AT&T Access NunAff Urtted niglm* -WjjHB-WII ; 

lord* countiyyou are calling from. : ' uibble eas™” W1 * 

1 Dial the phone number vwfrecallliML Eawi*tCa!rsj*~. BtO-azn = 

IsraaJ ..........177-100-2727 • 

3, Dial tbealling card number listed Saudi Arabia o i^NMl ' 

siwe your name. africs ~~ • # 

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South Africa O-0S0-M/*"' i ~‘ l 

. Cant Bad dwAiaea Number fiifitectmony 708*180*111^ from? JURA&atyoc/pfluifa.- Pan. 

Dfancf Sarto, or vtelt our Vtt ite ac bag-iftnr »jw 


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ond Nov. 15. ! 





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