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The World’s Daily NeroSpaber ; ' ! '-VV T 1 ^ 

— — 355 ' :i - i _ R Paris, Monday, October 20, 1997 

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I TO W ?L Members of Genera] Denis Sassou-Ngoesso’s Cobra militia walking through the 

| ““Ptt streets of Brazzaville, capital of the Congo Republic, which has been devastated by fighting. Page 9. 

Paris and Washington Speak Softly 

They Try to Get Beyond Caricatures Over Economic Models 


By Roger Cohen 

New York Times Service 

PARIS — Anti-Americanism is an 
old theme here, almost a ritual, one that 
Prime Minister Lionel Jospin rehearsed 
recently when he declared that America' 
could not impose its laws on the world 
and (hat “ultra-capitalism*' was unac- 

What was surprising, though, was to 
find the new American ambassador to 
Paris. Felix Rohatyn, agreeing with him. 
Not, of course, os die question of new 
French investments in Iran, the subject 
that gave Mr. Jospin die occasion for his 
jibes, but on the broader issue of Amer- 
ican economic domination. 

“We have no monopoly on ideas,” 
Mr. Rohatyn said here the other day. 

* ‘We do not believe that what worics for 
us is automatically the best approach for 

Deadly Affair: 
Pakistanis in 
| England Who 
Wed for Love 

- • By Warren Hoge 

_ .*• ' • New York Tunes Service 

BRADFORD, England — She has 
: had to move 19 times in the last five 
years. She steps outside her suburban 
■ .‘home only after checking the street for 

• strange cars and rehearsing the nearby 
~ footpath escapes. 

; ii r Once back inside, she shoves heavy 
Mffjtfumitnre under the front door handle 
jraodplaces a knife within quick reach. 
The British-born daughter of 
Pakistani immigrants, she is under a 

• ..death threat from her own father and 
' brother. They have vowed to find her 

and murder her because she left home 

rather than give up her studies at 16 and 

;. accept an arranged marriage with a man 
.. . they chose from a Pakistani village. 

She is now 25 and calls herselfZena, 

not her real name. The Englishman she 
married is 35 and goes by the fictitious 
name of Jack. . _ 

They tell their tale of love, flight, five 
years on the run and continuing fear tor 
’. their lives in the same broad- voweled 
Yorkshire accents. 

■ Cases like hers are becoming alann- 

• iugly common in this part of northern 
England, which has attracted a wgh 
number of immigrants from niral mouii- 

■_ lam regions of Pakistan that rigidly ob- 
jft serve ancient social customs. Their ex- 
W periences stand out against a broader 
- portrait of Britain as a country where 
nonwhite people and ethnic dress and 

• customs are increasingly commonplace 
1 ; . aadenconiestcd. 

The women are in their teens and zus, 
British by birth and upbringing, who 

See BRITAIN, Page 8 

Wew aat a n d Prlcw 

. Andon*. .1000 IT Lebanon IL JOJ 

Anfies^_^ — 12150 PF. Morocco -^-16 eg 

C*menx)a_!.0OOCB\ Qatar. — 

«... — £E 5.50 


Q*on_ — 1.100 CFA Seneoal-.- 1.100 Cf* 
***- 2,900 Lira 

• Nay eewr. 1550 CFA T\tfW|a 15MD« 

* Kuw* -mnCTtt 

anyone else." And as if to quash forever 
French fears of an American “ultra- 
capitalist* 1 system engulfing die globe, 
Mr. Rohatyn declared roundly; “There 
is no such thing as the American eco- 
nomic roodeL” 

These self-deprecatory remarks, 
made at the French Institute of Inter- 
national Relations, had a quite different 


ring from what was said just three 
month* ago, at the Denver s ummit meet- 
ing of the major industrial powers. There, 
it was precisely America's unabashed 
vaunting of its economic successes and 
its exhortation to its European allies to 
follow its free-market recipes that led the 
French president, Jacques Chirac, to talk 
huffily about defending “ourmodeL” 

The clash at Denver underscored the 

fact that the old sparring that strained 
but never undid an old alliance has 
gained a new edge, and a. different 
scope, as France has set itself up as 
perhaps the nearest thing the United 
States has to a serious ideological rival 
in tiie last decade of the 20th century. 

There used to be. of course, a shared 
enemy: the Soviet Union. Measured 
against that totalitarian power, the sys- 
tems in America and France clearly had 
more in common than set them apart. 

The situation has changed. Now that 
nobody wants to abolish capitalism, and 
its different forms lie at the heart of the 
global ideological debate, France and 
America offer two models whose dif- 
ferent merits may be argued. " 

The countries have been freed to ex- 
plore their differences. 

See ALLIES, Page 8 

Ports Feud 
Signals New 
Trade Strain 

Threats of Blockade 
Set Heated Tone for 
U.S.-Japan Relations 

• By Paul Blustein 

Washington Pass Service 

WASHINGTON — In the often- 
stormy history of U.S.-Japan trade re- 
lations over the past few decades, rarely 
has a development so galvanized both 
sides as the announcement last week by 
the Federal Maritime Commission of an 
order to ban Japanese cargo ships from 
entering U.S. ports as of last Friday 

Unthinkable though it seemed that 
U.S. Coast Guard cutters soon would be 
intercepting Japanese freighters, Amer- 
ican and Japanese diplomats lost no 
time Friday in forging a “break- 
through” in a long-standing dispute 
over foreign access to Japanese ports. 

[Harold Creel Jr., chairman of the 
independent commission, said the panel 
would meet Monday rooming to review 
details of the agreement. The Asso- 
ciated Press reported. 

[If no concerns are raised and the 
Japanese shipping companies involved 
agree to pay the $4 million in fines they 
owe, the co mmissi on will pennanently 
drop its threatened ban, be said] 

The tentative agreement to introduce 
competition at the ports was a source of 
particular satisfaction for Mr. Creel, . 
who crowed. “But for the commis- 
sion's actions, the Japanese would not 
be at the negotiating table today.'* 

Similar conclusions were being 
drawn by other U.S. officials and ana- 
lysts. who said the episode demon- 
strated anew that, all too often, Tokyo 
must be hit with the economic equiv- 
alent of a big stick before it will make 
concessions to open Japanese markets. 

“That's the unfortunate tiling we’re 
seeing, that often in U.S.-Japan trade 
negotiations nothing happens until some 
kind of overbk>wn threat is put into play 
by the U.S. side,” said Edward Lincoln, 
a Brookings Institution trade specialist 
who servo! recently in the U.S. Em- - 
bossy in Tokyo. “It’s a rather unsettling 
bargaining pattern that seems to arise 

See TRADE, Page 4 

A jjjJK C Rpmct-Pwac 

Finance Chief 
Out in Thailand 

finance Minister Thanong Bidaya 
announcing Sunday that he would 
resign as part of an imminent Thai 
cabinet shuffle. Page 1 1. 


Israel Will Allow Extradition 
Of Suspect in Maryland Killing 

JERUSALEM (AP) — The attorney general of Israel 
sa i d Sunday that a teenager wanted for a grisly murder in 
Maryland can be extradited to the United States, opening 
the way to end a crisis with Washington over the m a t te r . 

The Israeli government's refusal to extradite Samuel 
Sheinbein, 17, threatened to jeopardize the nations’ ties. 
Congress held back on releasing $75 million of the S3 
billion in aid destined for Israel, in part because of law- 
makers* anger over the affair. 

Mr. Sheinbein had c laimed Israeli citizenship, which 
would mean that under Israeli law be could not be ex- 
tradited. But Attorney General Tfliakim Rubinstein said 
Sunday: “After a careful examination of the matter of 
citizenship, the position of the Ministry of Justice is that be 
is not an Israeli citizen.” Mr. Sheinbein has been accused of 
killing Alfredo Enrique TeDo, 19, in September. 

Two Giants Appear Set to Create 
World’s Largest Accounting Firm 

Two of the world’s biggest accounting and consulting 
firms, KPMG Peat Marwick and Ernst & Young, are 
expected to announce, possibly Monday, that they will 

merge. • , . 

The deal would create' the world s largest accounting 
firm, with $15.3 billion in worldwide revenue and 11,712 
partners across the globe. . 

ft would also eclipse the pending combination of 
Coopers & Lybrand and Price Waterhouse, which was 
announced in mid-September. Page 1 1. 


fhmScofflaw to Tycoon, a Russian Success Story 

CLINTON BACK HOME — President Bill Clin- 
ton and his wife, Hillary Rodham Clinton, arriving 
at the White House after a tour of Latin America. 
Page 8. • An investigation into allegations of dona- 
tions by C hina ’s government to U.S. political cam- 
paigns has stalled for lack of evidence. Page 3. 

Books — - Page 9. 

Crossword Page 9. 

Opinion - Page 6. 

Sports Pages 16-18. 


Ubya Lobbies Vkthm 1 Kin for Lockerbie SettJemaU 

Pago 8. 

The tntBrmarkst 

Page 7. 

The IHT on-line v/ww. 

Jiang Aims 
To Raise 
U.S. Ties to 
‘New Level 9 

By Steven Mufson 
ana Robert G. Kaiser 

Washington Post Service 

SHANGHAI — Preparing for an am- 
bitious stale visit to the United States 
that will begin next weekend. President 
Jiang Zemin of China says he hopes to 
raise Chinese- American relations “to a 
new level” 

In a rare interview with an American 
newspaper, Mr. Jiang urged Americans 
to tolerate China’s political system and 
seek “common ground despite differ- 

He also said China and the United 
States “share the responsibility fra- pre- 
serving world peace and stability.” 

Chinese and American sources out- 
lined a series of initiatives designed to 
achieve Mr. Jiang's aim of forging a 
strategic partnership with the Clinton 
administration during the visit, which 
starts next Sunday. 

Sources said China would pledge to 
end sales of anti-ship cruise missiles to 
Iran, which the United States has seen as 
a threat to shipping in the Gulf. 

Hie sources also said that the two 
countries would sign an accord at the 
summit meeting pledging coordination 
to avoid naval incidents at sea and that 
they probably would agree to cany out a 
1985 agreement on nuclear cooperation 
that would allow American companies 
to sell nuclear power plants and equip- 
ment to China. 

More broadly, the Chinese are press- 
ing a reluctant Clinton administration to 
make a joint declaration affirming fee 
common strategic interests of fee two 
nations and pledging to work together to 
guarantee ^stability” in the 21st cen- 
tury. The Chinese would tike such a 
statement to reiterate U.S. support for 
“one China,’ ’ reaffirming fee principle 
that Taiwan should someday rejoin fee 

In the interview here, Mr. Jiang at 
times read from a prepared script and at 
other times spoke extemporaneously, 
interspersing his comments wife snip- 
pets of Russian and English, a line from 
Abraham Lincoln’s Gettysburg Ad- 
dress and Chinese proverbs. He defen- 
ded the 1989 crackdown on the Tianan- 
men Square student uprising, said that 
Chinese leaders were on “high alert” 
over fee U.S.-Japanese security alliance 
and that, under China's market reforms, 
the Communist Party plays a role in 
helping foreign investors manage labor 

But Mr. Jiang, 71, strayed little from 
the rhetorical formulations of the past. 

See JIANG, Page 8 

No. 35,656 ^ 

Clinton Sees 
Nuclear Sales 
With China 
As Possible 

Technology May Flow 
When Beijing Stops 
Sending Iran Missiles 

By Steven Erlanger 

New York Times Service 

WASHINGTON — If China signs an 
agreement that it will no longer send 
anti-ship cruise missiles to Iran, as se- 
nior U^. officials say Beijing has prom- 
ised to do. Resident Bill Clinton could 
then lift a U.S. ban on sales to China of 
nuclear technology for civilian power- 
plant projects. 

Hie U.S. officials also said that China 
had agreed in principle to halt its nuclear 
assistance to Iran. “The details need to 
be worked out,” an official said. 

Dealing with China has been one of 
Mr. Clinton’s most awkward prob- 

While he wants to bring China into 
the web of international relationships 
and responsibilities and take advantage 
of its economic potential, his policy of 
engagement has been criticized by Re- 
publicans as appeasement of a potential 
threat to U.S. interests in fee Pacific. 

Under the conflicting pressures, he 
has reversed course many times. 

The visit starting Sunday by Pres- 
ident Jiang Zemin comes at a time when 
criticism of China has focused on its 
repression of dissent, its punishment of 
human-rights advocates, its restrictions 
on religious practices and its histoiy of 
selling dangerous nuclear and conven- 
tional technology to Iran and Pakistan. 

The a dminis tration is using fee visit 
to press Beijing to improve its behavior, 
and will want to highlight its successes, 
while critics suggest feat Chinese prom- 
ises may prove to be hollow, as they 
sometimes have in the past 

“Hie whole logic of this is back- 
ward,” said Robert Kagan of the Carne- 
gie Endowment, who is a critic of Mr. 
Clinton’s China policy. “The Chinese 
want a nuclear cooperation agreement 
And the administration, which other- 
wise has nothing to sh.ow for tins sum- 
mit, wants to give Beijing what is in 
effect a present, which shows fee suc- 
cess of engagement, which the Chinese 
have not yet earned. *’ 

The new pledge to stop selling Iran 
the conventional cruise missiles, known 
as C-801s and C-802s. was made di- 
rectly to Secretary of State Madeleine 
Albright by Foreign Minister Qian 

Congress and fee Pentagon have as- 
sailed tite missile sales as a clear danger 
to U.S. vessels and shipping in the 

The pledge may take some criticism 
off Mr. Clinton. The issue has been used 
by Republicans in Congress to accuse 
the administration of weakness in de- 
fending U.S. interests, and a U.S. law 
would require imposing sanctions on 
China if Beijing exported enough of fee 
cruise missiles to “destabilize” fee mil- 
itary situation in fee Gulf. 

China is not required by any inter- 
national agreements to halt fee missile 
sales to Iran, but administration officials 
have told their Chinese counterparts that 
relations with the United States are 
much more important to China ’s future 
than a low-level military supply rela- 
tionship with Tehran. 

The pledge, fee officials say, is also 
an indication of a more fundamental 
Chinese decision “to no longer be seen 
as a rogue stale on proliferation, ’ ’ That 
would mark a sharp change from a de- 
cade ago, when China saw no problems 
with fee spread of nuclear weapons to 
the developing world. 

Officials acknowledged that China 
had not always fulfilled past pledges to 
limit its export of arms, technology and 
materiel to Pakistan and to Iran. Wash- 
ington still has concerns about China’s 
exports of dual-use chemicals and mis- 
sile technology. Under fee administra- 
tion of Ronald Reagan, China broke 

See CHINA, Page 8 

Murky Nature of Algeria’s Conflict Stymies Search for a Solution 

■ ByJotoLM^ter Civilians Axe Caught Up in Violence They Don’t Understand 

tiijers took tteir nmt And International Observers Wonder Which Side Is Which zSm?™ foram 

ALGIERS — The killers wok feeir tune. 

For nearly four hours, they laid waste to fee 
neighborhood of Bentalha, moving methodically 
from street to street and selecting their victims 
from a list, according to two witnesses and AI- 
p-rian press accounts. Breaching locked doors 
Wife homemade bombs, they used knives and axes 
to slaughter entire families, including many chil- 
dren. Then they carried off whatever valuables 

Sdexplosions were clearly andiblew 
residents of neighboring Baraki, less *«» *** 
kilometers (two miles) away, where hundreds of 
scSts occupy a fortified compound- But fee sol- 
diers stayed puL As many as 214 civilians died. 

The massacre oa Sept. 23 was not an isolated 
incident On three nights in fee last two months, 
large numbers of armed men, sometimes accom- 
paScd by women, have entered neighborhoods on 

the outskirts of Algiers, slaughtering hundreds of 
men, women and children without interference 
from security forces fear sometimes were within 
earshot of the victims* screams. Scores more have 
died in smaller attacks in the farm tty wns and dreary 
high-rise suburbs south of the capital 
Government officials say that the killings were 
carried out try Islamic militants seeking to over- 
throw fee military-backed government, and that 
mines laid outside targeted neighborhoods pre- 
vented fee security forces, from intervening. But 
many Algerians are skeptical of those claims, ac- 
cusing tiie security forces of abettaigthe violence, 
or at least tolerating it, to discredit fee militants. 

• Unprecedented in scale, savagery and proximity 
to the capital fee bloodshed has prompted talk of 
foreign intervention to end a war that has killed 

tens of thousands of people since fee government 
canceled elections that Islamic fundamentalists 
were poised to win in 1992. 

But fee search for a solution is complicated fay . 
the murky nature of the violence. Ethnic wars in 
Bosnia-Herzegovina or Rwanda have had a certain 
logic. The Algerian conflict, by contrast, involves 
rival groups of Islamic extremists, criminal ele- 
ments and a secretive military-backed government 
that is said to be split between * ‘conciliators, ' ’ who 
favor a political settlement, and “eradicators,” 
who seek a military solution. 

“I’m not sure outsiders can play a constructive 
role,” a Western diplomat said. “As long as the 
situation on fee ground is so fractious and so 
murky, 1 mean, whose heads are we supposed to be 
banging together?” 

Making matters even more complicated is the 
security situation, which inhibits independent in- 
vestigation by diplomats, human rights organi- 
sations or foreign journalists, who cannot leave 
their hotels without armed guards. 

Many Algerians are baffled by fee violence 
which has caused residents to sleep outside notice 

“I rally don’t know much about whai is hap- 
1 ““sfckBoucbadu, an attomeyfor 
Abdelkhader Hacham, one of fee leaders of the 
outlawed Islamic Salvation Front, fee country’s 

even iSrme” °* >positio11 ^“P- “ Ir ’ s a mystery 

A week of interviews wife diplomats, human 
rights lawyers, Algerian journalists and survivors 

Or lama mneeAA*.. . - . . . 9 

feraed up no evidence of direct government in- 

nSmSf 111 Survivors of massacres^ 

Bentalha and Sidi Rais, where as many as 51 1 

See ALGERIA, Page 8 



. - * A. *- - 




From Moonlighter to Tycoon / Rebuilding a Nation 

A Typesetter Becomes a Pillar of the New Russia 

By David Hoffman 

Washington Post Service 

M OSCOW — Alexander Smolensky 
was a hustler in-the old Soviet Un- 
ion. He was a typesetter who wanted 
to make more money but didn't have 
permission to hold a second job. He moonlighted 
anyway, working in a bakery three nights a week 
and paying someone to lend him the needed 

At a state publishing house, he got into trouble 
doing a little printing on the side. He helped 
typeset a Bible, he recalled, and was arrested by 
the KGB. He was accused of “theft of state 
property" and "individual commercial activ- 
ity" for using some printers' ink for his own 

After a trial, Mr. Smolensky was sentenced to 
two years labor in a state construction brigade. 
The sentence was never enforced, he said. But he 
was seared by the experience and spent years 
fighting back against the state authorities he 

Today, Mr. Smolensky, 43, draws slowly on a 
cigarette, sitting in an elegant conference room 
in the center of Moscow, surrounded by 19th- 
century Russian and German oil paintings and 
sculpted elephants. He is now chairman of SBS- 
Agro, one or Russia's largest private banks, with 
43,000 employees and £5.2 billion in assets. 

But be is more than a bank chairman. He is a 
financial pillar of the New Russia, a leading 
business tycoon in a country trying to remake 
itself into a free- market democracy. He is still 
disdainful of the state, yet he has been drawn 
inexorably into the battle to rebuild Russia out of 
the ruins of communism. 

When President Boris Yeltsin some weeks 
ago summoned the country's leading business 
tycoons to the Kremlin, Mr. Smolensky was 
among them. , 

How he went from being punished for mis- 
using ink to sitting down in the Kremlin with the 
president is in many ways the story of Russia's 
great unfinished transition from communist rule 
to capitalism and democracy. 

Mr. Smolensky was inspired and profoundly 
shaped by the events that gave rise to the New 
Russia. He recalled that he started a bank as a 
way to light back against the Soviet system. 
Back then, he had no idea what a commercial 
bank was. 

Now, Mr. Smolensky's bank has floated cor- 
porate Eurobonds in world markets. His plastic 
credit cards are used by members of Parliament 
and his automatic teller machines are inside the 
Kremlin. He is earthy, tenacious and comes 
across as a self-mode man, nothing like the old 
Soviet elite or the slick New Russians. 

Trained as a typesetter. Mir. Smolensky 
scrambled to make ends meet Despising the 
Soviet system, he said he decided to strike back 
by helping a church prim the Bible in his state 
print shop. * ‘free of charge. ’ * 

"I was not such a great believer, but F thought 
the church was an institution that could help 
destroy everything that existed, the system," he 

Dnid Hofam/'nurVuhmgtofl Hm 

Mr. Smolensky's bank has floated Eurobonds. Bis credit cards are used by 
members of Parliament and his automatic teller machines are in the Kremlin. 

said. “Of course, the KGB didn’t like it" 

In the mid-1980s, while he was working in 
construction, everything changed. Mikhail 
Gorbachev came to power and began to chal- 
lenge the ossifying Soviet state. One of his most 
radical early reforms was a law permitting the 
creation of cooperatives — autonomous compa- 
nies that were allowed to set their own prices. 

Mr. Smolensky became head of Moscow-3, a 
construction cooperative. His group sawed logs 
and made planks, then built simple country cot- 
tages around Moscow. It was a hugely successful 

“We had a gigantic line, and we were very 
proud." he recalled. “In those times, to buy 
planks and nails in Moscow was impossible. It 
was just impossible. Not for money, not for 
anything. You could only ‘get’ so mething/ ' 

How he “got" the materials, he didn't say. 
But he was so successful that die city's Com- 
munist Party bosses insisted he put their names 
on his list for new dachas, too. 

As the boss of Moscow-3, Mr. Smolensky, 
along with other such entrepreneurs, faced a 
quandary. They were earning money but had no 
place to put it. 

“Smolensky had profits from construction 
and didn’t want to put them into a state hank,” 
said Alexander Bekker, a journalist at the news- 
paper Sevodnya who has known Mr. Smolensky 
for years. “That's why he needed to create a 
bank of his own." 

Mr. Smolensky registered his bank, Stolichny, 
on Feb. 14, 1989. It was one of the first private 

banks to be created, and it would be part of a 
critical development in what would become the 
transformation of the Soviet and later Russian 

Private b anks quickly became a primary in- 
strument of economic change. Taking root even 
before the lifting of price controls and mass 
privatisations of die Yeltsin years, their numbers 
exploded in late 1991. as the collapse of the 
co mman d economy, and of the Soviet Union 
itself, accelerated. 


Y THE END of that year. 1,500 banks 
were registered. Many were small, ded- 
icated only to a single factory ora few 
cooperatives. Mr. Smolensky recalled 
that his desk was divided — half for the cottage- 
building cooperative and half for tiie bank. 

When he began, he said, he knew 
about banking, had no idea how a 
bank functioned and at the outset had but one 
goal: “To evade the state bank. ” ' 

The evolution of the New Russia came slowly. 
For example, the former Soviet state bank chair- 
man, Viktor Gerashchenko, became head of die 
Russian Central Bank, and Mr. Smolensky was 
constantly at odds with him. 

Mr. Gerashchenko, Mr. Smolensky com- 
plained at tiie time, “deluged commercial 
banks” with “1928-model instructions,'’ such 
as, “Limit tiie issuing of cash." 

Or, Mr. Smolensky fumed, another Central 
Bank official sent a message,- “I authorize the 
payment of wages. ” 

Mr. Smolensky asked, “Don’t my clients 
have the right to dispose of their own money? 1 ’ 

Mr. Bekker.. the journalist, recalled, “The 
state hated Smolensky and his bank-more -than 
any other.” Privately, Mr. Smolensky was des- 
perate, exhausted and on the verge of leaving the 
country, said Mr. Bekker, who published a long, 
angry interview with him in June 1993. Mr. 
Smolensky had sent his family to Anstria.- 

Then, the riroatioa suddenly changed again. 
In October 1993, President Yeltsin resisted a 
revolt by hard-line opponents in Parliament, 
ordering tanks to shell the White House, tiie 
Russian government building. 

“All the audits stopped, ’ Mr. Smolensky 
recalled. A new constitution was adopted that 
guaranteed the independence of the Central 

: Mr. Gerashchenko resigned from the Central 
Bank the following year. 

Through all the turmoil, Mr. Smolensky held 
fast to a dream — to be the biggest private retail 
banker in Russia. He invested in advanced com- 
puters. He introduced credit cards and automatic 
teller machines. 

But there- were- many obstacles. 1 Inflation 
skyrocketed to more than l,0Q0 percent a year. 
Many Russians saw their savings wiped ouf by 
hyperinflation or pyramid schemes. They did not 
trust banks. 

-Mr. Smolensky and the other bankers could 
not function like Western bankers, m al ting loans 
to businesses. Long-term lending did hot exist. 

But they survived by finding another way to 
make money. .. .. 

Between the collapse of the Soviet Union in 
1991 and the end of 1994, the ruble exchange 
rate against the dollar dropped 95 percent So the 
banks made fat profits by speculative trading on 
the exchange rate. 

“One couldn't give loans in the normal sense 
of the word with such hyperinflation,” Mr. 
Smolensky said. "We engaged in speculation. 
Otherwise you couldn’t survive. There was no 
real industrial production. Who to give loans to? 
They would go bankrupt the next day.” 

The political leadership teetered between tiie 
Communists and Mr. Yeltsin in early 1996. The 
Communists became the largest faction in tiie 
lower house of Parliament after the December 
1 995 vote. Their leader, Gennadi Zyuganov, was 
ahead in voter polls for the presidency. 

Mr. Smolensky, the maverick outsider, was 
drawn into the coterie of bankers who 'tried to 
save Mr. Yeltsin. They gave millions of dollars 
to his campaign, and steered tiie media they 
owned to rescue him. 

When Mr. Yeltsin dismissed the leading re- 
former in his government, Anatoli Chubais, in 
January 1996, Mr. Smolensky quietly cushioned 
the fall. He said he made an interest-free, $3 
million loan to a think tank that Mr. Chubais had 
set up. 

. With their success in backing Mr. Yeltsin, the 
bankers’ coterie became an informal oligarchy, a 
new power smicture complete with money, me- 
dia and security forces that rivaled and com- 
plememedihe Kremlin. 

Hope Rides | 
On Bilbao’s 
New Museum 

By Alan Riding ’ . 

New York Tima Service 

BILBAO, Spain — When the 
geubeim art museum here opened id i 
public Sunday, visitors entering the 
strikingly unuSttal titanium -and stone- 
covered built' 
of flowers 

J " 1 


tiding walked past bouquets 
marking the spot wherc a 


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70 Die in Sierra Leone as Truck Overturns 

American Airlines Enters 
Agreement With Asiana 

NEW YORK (AFP) — American Airlines 
and Asiana Airlines in South Korea have 
entered into a joint venture that includes code- 
sharing and the integration of frequent-flyer 
programs. American Airlines said. 

Under the agreement, American would 
place its AA designator code on all of Ast- 
ana's flights between the United States and 
Seoul. Frequent flyers with either airline 
would be able to transfer credit points to their 
respective bonus clubs. The joint venture, 
which still requires government approval, 
would be effective Nov. 20. 

Typhoons Churn Pacific 

MANILA (AP| — Two powerful typhoons 
churned across the Pacific on Sunday, one 
nearing the Philippines and the other heading 
toward Japan after ravaging the Northern 
Mariana Islands. 

A typhoon, designated Ivan, packing winds 
of up to 215 kilometers 1 133 miles) per hour, 
was 150 kilometers (90 miles) east of the 
northern Philippine province of Cagayan and 
expected to hh land laic Sunday" dr early 
Monday morning, forecasters said. They 
warned" all types of vessels to avoid the area 
and advised people in coastal villagers in 

northern regions to move to higher ground to 
escape possible flooding. 

Another typhoon, designated Joan, with 
maximum winds of 198 kilometers per hour, 
was 800 kilometers southwest of Iwo Jirna, 
one of Japan’s southernmost islands, on Sun- 

Fire Sweeps Lisbon Metro 

LISBON (Reuters) — At least one person 
was killed when a fire swept through a tunnel 
of the Lisboa underground railway system 
Sunday, paralyzing the network, firemen 

Firemen said they had found the body of a 
night .watchman and feared that another metro 
employee may also have died. The cause of 
tiie fire was not immediately known. 

Authorities in western Kenya have 
banned feasting at funerals, ordered food 
stalls closed, andoutlawed the sale of smoked 
fish in an effort to contain a cholera epidemic, 
newspapers reported. The disease is estimated 
to have killed more than 200 people in the past 
two months in the Kisumu and Kakamega 
districts. ■ (AFP) 


FREETOWN, Sierra Leone — At 
least 70 people fleeing air raids by West 
African forces in the Sierra Leone cap- 
ital died when the tractor-trailer truck in 
which they were traveling overturned 
near Freetown, the police said Sunday. 

Relatives of the dead besieged Con-, 
naught Hospital in Freetown, where the 
dead and 22 injured were brought from 
the crash Saturday night near York, 40 
kilometers east of the capital. 

The police said the driver lost control 
of the truck, which was traveling to the 
Northern Region, because of a flat tiie. 

Some of the dead and injured in- 
cluded children, the police said. The 
truck was carrying bags of rice as well as 
the passengers. 

Aid workers said ai least 10,000 
people had fled Freetown since Nigerian 
jets from a regional force confronting 
coup leaders in Siena Leone began 
bombing targets in the city. 

week fofling a terrorist attack. 

The outlawed Basque separatum 
group known by its initials ETA, which 
stand for Basaue Homeland - and 
Liberty, apparently planned to disrupt 
the museum’s formal inauguiationijy.t ■ 

King Juan Carlos on Saturday evening‘s 
■ The ceremony went ahead as planned, 

■_ but celebrations were touted by ihourk 
ing for the policeman, Jose Maria • 

Agirre, and by a new waver of puhfc. 
anger at the ETA, whose campaiga for _ 1 
Basque independence har cost about 
800 lives over tiie past three decades. . 

The terrorist action last - Monday - • 
nonetheless served to underline the im- 
portant political as well as cultural role 
that the museum is expected to pfey 
here. For many people in Bilbao, it 
represents foe city’s desire to tom its 
back ou its recent past of. industrial 
decay and separatist violence and 
present a new image of econqtn&afid 
urban renewal and openness ^3^ 

The museum’s architect, 
ican Frank Gehry, has 
bizarrely shaped building on 
of the Nervion River as a 
aground. On Saturday, tiw-Bssq&erte- 
gjon ’s president, Jose Antonio Anjlanza, 
said he saw It as a ship aboofift'be 
launched, its ‘ ‘valuable cargo” carrying 
a message. 

“For us Basques, it is a messageof 
confidence in ourselves, in oorcafriritjr 
to renew and innovate, in poleax- 
mmati on to overcome the tramnastif foe 
past and to come back to the pgl&tiiat 
leads to the future,” he said. 

“Today, from this museu 
ourselves up again to the woi ere 
offer the museum as a place 
culture -and world culture can again 
come together.” 

Although the museum is to be ad- 
ministered by the New York-based So- ■= 
lomon fL Guggenheim Foundation, the- * 

Basque regional government ha£ l ||L*|* If i\ 
covered the $100 million construction tULl* * * • » 
cost, donated $50 million for acqui- 
sitions, paid a $20 million fee to the Till) 1 1 V 
Guggenheim and agreed to subsidize the {(If ft., 
museum’s $12 million annual budget “ 

Basque authorities and Bilbao’s res- 
idents seem to have embraced the projh 
ect with enthusiasm. “I walk down the 
street here^ and people grab my hand to- v i : i -• 

thank nre,” said Thomas Krens, director 
of the Guggenheim Foundation. 

Architecture and art experts who vis- 
ited Mr. Gehry ’s building during its 
construction as well as in two weeks of 
previews this month have almost unan- 
imously acclaimed it, above all its soar- - 
ing atrium, its “tumbling boxes" pro- 
file and its 430-foot-long (130-meter- 
long) “ship” gallery. 

The opening exhibition. “The Gug- 
genheim Museums and the Art of this 
Century,” features about 300 wodq . 
from the Guggenheim’s 10,000-piecej- 
collection and around 50 works newly : 
acquired by the Guggenheim Bilbao. 




■ =~2 









Iran passed a law Sunday making it 
obligatory to wear seat belts in cars and 
safety helmets on motorcycles, according to 
parliamentary officials. (AFP) 





Are You Prepared ? 

1997 & 1998 Will Generate 
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MnnMUMS 510.000 to 55.000.000 (USD) 

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France 0M0MZ34S 
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Japan 00311M809 

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Greece 0800119213013 Germany 0130829666 
load 1771000102 Italy 107875028 

Korea 0038110243 Luxembourg 08004552 

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This Week’s Holidays 

Banking and government 
offices will be closed or ser- 
vices curtailed in the follow- 
ing countries and their de- 
pendencies this week because 
of national and religious hol- 

MONDAY: Oaricraala. Ja- 
maica, Kenya. Virgin Islands. 

TUESDAY: Burundi. Hondur- 
as. Somalia 


THURSDAY: Hungary, br- 
ead, Thailand. 

FRIDAY: Zambia. 

SATURDAY: Grenada. 

Kazakson. Taiwan. 

Sources- Jf. Morgan. Rearers, 

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27180 22/71 pc 
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18/84 12/53 r 
22/7-1 15/59 C 
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WSWU 18/61 8/43 c *48 1/34 0 

WWW ■ 1353 SrZTc *32 -6/18, 

2U*h 17702 12/53 Ml 16781 1050 pc 

Forecast for Tuesday through Thursday, as provided by AocuWoether. Asia 








High LowW 
27/80 18/04 pc 
1S/5S 8/46 DC 
17*60 3/37 pc 
21/5TJ 1950 pc 
28/70 19/00 pc 
10*1 3/37 pc 

6/43 0732 • 
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307 0/320 
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24/75 17/82 pc 
936 -1*1 t 
17182 10*0 Ml 
61/52 3/37 pc 
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-307 -WTO pc 

.North America Europe Asia 

Sunny and hmew mudi Mild In uuttwn Engtand Windy and duly ft Bsfira NowD « w 
erf ttwWosi Tuesday to Tuesday, rain Wednesday. Tuesday, but mUdwwtth PtnoraP * 


Hfeh LoaW 
2V7D 7*44 ■ 
31/00 21770 pc 
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ZSm 11*28 
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80*8 21170 c 
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2984 14*7 pc 
30*6 23773 pc 
33*1 19/88 • 
31*8 22/71 C 
2984 23773 T 
3988 23/73 pc 
29*4 13/56 r 
Ftao/nFM) 28*4 23773 C 

— — - ” h • ui ■ ■ wpiuii miu om m i owiire aura 

tewsaakmg rains. Turn- southern France Tuesday may shower in Seoul 
‘ ?«, ^ ** ThUr? " TTiuraday. Typhoon Ivan 

and tne Grea! Lakes day. Cold wtui snow m may cause heavy rflJn over 
"SSs lfl Scendlnflvta and western Taiwan andOkinawa. 

"“SS"?* Southeastern Chine will 
and cooler in the EasL most of France end Spain, fteva showeia and eieao of 

soaking rain. 

M nap*. foidCM* M darn pmkM by AesaWartw, too. C 1997 


Wo n ua iM 

32*9 24/75 pc 
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2971 10301 . 
29/79 lfiffil pc 
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22/71 19Wa 
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North America 

Tonmrar ' 

Mgh Load 
17/90 «M3» 

32/SB 22/71 pc 
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anno 21 /to pc 
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31*8 2373 
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32/89 24/758(1 
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2W84 2373 pc VT. 
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23/73 IWBlpc . 
31*8 2*73 pe - >1 
27780 21/70 PC ^ 
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L ' ' 










Middle East 

Abu DM3 






30/100 21770 s 
25/77 20/69 pc 
2879 14/57 a 
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330/ 19*8 pc 
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sam 11/52 pc 

32*9 17*7 pc 32*0 15/60 pc 
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dps Tom 

30*8 19*6* 31*8 19*80 

2078 14/67 5 24/76 14*7 pc 

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MTS V49* SWO 7W4S 
2taB4 22/71pc 28*82 2271 ps 
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tanocAtaa 20*9 W50pc 
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' Ride, 






frail of Chinese Influence in U.S. Politics Grows Cold 


and ^onafd jloTJow 

^Aanelci i Times 


. WASHINGTON — The federal 

investigation i Wo a sus r ^^ 
Chuwse scheme to buy influence in 
*eAr^can political system has 
become stalemated by the inability 
f U ‘iL H^fl^ators to track a com- 
- plex trail of funds moving from the 

SSE? *"*?«** into the United 

, lo officials famil- 

' with the inquiry. 

II taii, has gone cold, 

' JJ-S. officials say. with what they 

beheve to be an elaborate money- 
; J.“JD de f*n$ effonthat makes it very 
difficult for the FBI and other fed- 

• erai agencies to garher sufficient ev- 

• idence lo buUd a successful criminal 

The possible Chinese influence- 
buying effort has emerged as the 
most explosive element of the 
sprawling campaign finance contro- 
versy. raising the specter of a major 
foreign power using political agents 
and illegal money to affect Amer- 
ican foreign policy. 

The FBI was initially tipped off to 
the suspected plan as early as 1995, 

through communications between 
the Chinese Embassy in Washing-, 
ion and Beijing that were intercep- 
ted by the National Security 
Agency, the U.S. government’s su- 
persecrei code-breaking and eaves - 
dropping service. Communications 
from the Chinese consulate in Los 
Angeles woe intercepted by the 

The intercepts showed that 
Beijing, angered by the Clinton ad- 
ministration’s decision in 1995 to 
gram a visa to President Lee Teng- 
hui of Taiwan to visit the United 
States, began a coven operation to 
counter what Chinese officials be- 
lieved was Taiwan's inordinate 
political influence in the United 
States, investigators have said. 

Senior Chinese officials have re- ■ 
peatedly denied that they made any 
efforts to direct money illegally into 
U.S. political campaigns or to -in- 
fluence political events improperly 
by other means. 

But based on what they heard in 

— aito congressional races and 

other political campaigns in 1996, 
while also ordering Chinese con- 

sular officials to develop new ties to 
young, local politicians around the 
country who might become impor- 
tant national figures. 

In response, die FBI warned six 
members of .Congress about the al- 
leged Chinese operation in the 
spring of 1$96. A team of three FBI 
special agents told the lawmakers 
that they had been singled out by the 
Chinese government for political 

The FBI also notified the Na- 
tional Security Council at the White • 
House, although National Security 
Council officials considered the 
warning to be so vague that they did 
not pass it on to more senior White 
House aides or President Bill Clin- 
ton until after the fund-raising affair 
broke in the media. 

The intercepted communications- 
helped federal investigators identify 
at least one suspected Chinese polit- 
ical agent — Ted Sioeng. an In- 
donesian entrepreneur who was an 
executive with a Chinese- language 
newspaper in Southern California. 

Yet, despite the evidence gen- 
erated' by the intercepts and other 
sources, U.S. officials say they have 
been frustrated by what they de- 

scribe as elaborate money-launder- 
ing techniques used to cloak the 
sources of the funds flowing to U.S. 

Federal investigators have made 
some progress. In a number of cases, 
suspicious money transfers have 
been- traced from government-con- 
trolled banks or companies in China 
to U.S. accounts. 

For example, federal investiga- 
tors have raised questions about Si 
million they have traced to an ac- 
count held by the Chinese Embassy 
at the Bank of New York. And a 
number of contributions have 
flowed to U.S. political organiza- 
tions through straw donors that in- 
vestigators suspect originated in 
China. But investigators have been 
unable to make definitive links. 

The missing links have hampered 
the FBI's efforts to corroborate the 
leads generated by the intercepted 
Chinese communications. 

So even though U-S. intelligence 
and law enforcement officials 
privately have briefed Congress on 
some evidence developed in the 
probe, the Justice Department has 
yet to gather enough to make a suc- 
cessful case. 

“You haven't seen any indict- 
ments yet. have you?" a senior U.S. 
government official asked rhetor- 
ically. “We hs .* been unable to 
connect the dots, and there is a rea- 
son for that. Their money laundering 
was very advanced. A lot of very 
sophisticated techniques were used 
to conceal the flows of money into 
this country." 

With the investigation now run- 
ning into a brick wall, frustrated 
federal officials are Dying to ana- 
lyze the way the money trail might 
have been concealed. 

That has led to finger-pointing 
throughout Washington, with Con- 
gress raising questions about wheth- 
er U.S. intelligence and law enforce- 
ment officials provided training in 
American raoney-laundering-detec- 
tion techniques to Chinese officials 
— training that was then turned 
against the United States. 

Congressional investigators ini- 
tially believed that the FBI had 
provided training in money-laun- 
dering techniques to Chinese intel- 
ligence. But the FBI director. Louis 
J-. Freeh, recently told Congress that 
“another agency" of the federal 
government was involved. 



Lobbying Down Reform Bill 

Disparate Groups Weigh In on Campaign Finance 

Brtto K- Diggi/Ttae Aiwcoml Prr« 

FOR WOMEN ONLY — A World War II navy veteran waving as she left a 
dedication ceremony at the Arlington National Cemetery in Virginia for a 
monument paying tribute to women who had served In the armed forces. 



A Dicey Solution for Gridlock: 
Pricey Passes for the Fast Lane 

In Minneapolis, solo motorists will soon 
be able to buy their way out of traffic jams 
and into the fast lane. 

Starting in December, solo commuters 
will be allowed io buy a pass for $75 a 
month to cruise in the freer-flowing car 
pool and bus lanes along 13 miles (20 
kilometers) of one of the area's most con- 
gested highways. Interstate Highway 394. 
But this so-called congestion pricing ex- 
periment. part of a federal pilot program 
also being tried in some other states, has 
already triggered warning signs of driver 
rage among the area's normally compla- 
cent commuters. 

Many drivers in the Minneapoiis-Sr. 
Paul area see it as yet another example of 
the masses being left at the curb to watch as 
the wealthy crowd speeds'by. reported The 
Chicago Tribune. 

“It certainly smacks of that, said John 
Holahan. a district court judge who car 
pools with two court clerks. “1 don’t think 
the average citizen who pays more than 
S 1 00 a month to park downtown can afford 

to pay another $75 a month to use die car- 
pool lane." 

State and federal transportation officials 
say the experiment aims to reduce gridlock, 
increase freeway capacity and improve 
safety, while bringing in extra revenue. 

Elsewhere, congestion pricing has been 
attacked as the corruption of one of the few 
truly democratic places remaining in Amer- 
ican culture — the open road, where rich 
and poor drive side-by-side. Tom Hayden, a 
California state senator, lamented the cre- 
ation of “Lexus lanes" fra the rich. 

But transportation officials say 
something has to be done. By the year 2005, 
they estimate Americans will spend 7 tril- 
lion hours a year in traffic jams, five times 
the number wasted on roads in 1985. 

Short Take 

Congestion is not really the most 
pressing problem in Jefferson County, 
Florida, a quiet Gulf Coast area. People 
there say five cars equals a traffic jam. 
There was talk of putting in a stoplight, 
after a series of accidents outside a grocery 
story. But county officials stood their 
ground. “There are people here who take 
pride in the fact that we have no traffic 
lights," said Lazaro Aleman, editor of the 
twice-weekly Monticello News. “They 
think that if you put a traffic light in. there 
goes the whole community." 

Brian Knowlton 

By Eric Schmitt 

New fort Tones Service 

people may think that the de- 
bate over how political cam- 
paigns are financed is simply 
an inside-the-Beltway battle 
between a Republican-con- 
trolled Congress and a Demo- 
crat in the White House. 

hi fact, a diverse array of 
civic, religious, business and 
labor groups — including the 
American Heart Association, 
the Gray Panthers and the Na- 
tional Rural Letter Carriers’ 
Association — are actively 
engaged in the often-arcane 
debate over unregulated 
“soft money,” issue adver- 
tisements arid political action 

Interest groups have had a 
pivotal effect on the changing 
shape and content of the bill 
to overhaul campaign fi- 
nance, sponsored by Senators 
John McCain, Republican of 
Arizona, and Russ Feingold, 
Democrai of Wisconsin. 

For example, the senators’ 
original bill offered 30 
minutes of free television 
time to candidates who vol- 
untarily agreed to limit their 
spending. But when the major 
television networks howled 
in protest and brought their 
considerable influence to 
bear, Mr. McCain dropped 
that idea. 

Then when groups like the 
National Education Associ- 
ation and the International 
Association of Fire Fighters 
protested the bill's ban on 
political action committees, 
the senators eliminated that 
provision, too. 

The bill has been pared to 
its essential components: 
banning unregulated soft- 
money contributions to na- 
tional political parties and 
categorizing advertisements 
that advocate issues and those 
that champion candidates. 


Comrades Bury Che Guevara in Style 

By Larry’ Rohter 

A«n- 7/ww.» Service 

After 30 vears of mystery* and 
intrigue, the remains of Ern- 
esto (Che) Guevara, the doc- 
tor-tumcd-guerrilla who in- 

’ spired a generation of would- 
be revolutionaries around the 
world, have been laid to rest in 

• this elegantly faded provin- 
cial capital where he achieved 
the military victory ihat first 

established’ his reputation. 

As his comrade-in-arms 

Fidel Castro looked on. the 
coffin containing the skeleton 
of the "heroic warrior was 

■ interred in a mausoleum at the 

>■ base of a giant statue ot 
'* Guevara, rifle in hand. 

In an uncharacteristically 

brief. 15-minuie speech 
. President Castro praised the 
Argentine-born guemlia. 

• wlfo was 39 when Bolivian 
soldiers captured and ex- 
ecuted him. as * the pnmdran 

of the revolutionary *no 
“is everywhere there is a just 

cause to detend- • 

Since his death, Guevara 
has become an wfemjngJ 
symbol, both to fellow IftoB 
who iriri. » lnwsl j£‘ a £ 

without success, to “PPjLjJf 

: thconesofgucmUa warfce, 

and more reeentJytorrar 

keiers. who have ***** 
now-familiar tmage on such 
. products as washes, skis, 
3 shins anil CDs. . . 

Mr. Castro. 7I,dn^»n 



“Che is fighting and win- 
ning more battles than ever," 
he said to a large crowd that 
included Guevara’s widow, 
Aleida March, and children. 

“Thank you, Che, for your 
history, your life and your ex- 
ample. Thank you for coming 
to r einf orce us in the difficult 
struggle in which we are en- 
gaged today to preserve the 
ideas for.whicb you fought so 

The 90-minute ceremony 
Friday capped seven days of 
official mourning that began 
immediately after the close of 
a Communist Party congress 
at which Guevara was re- 
peatedly cited as an example 
of sacrifice and discipline. 

Last week, Cuban televi- 
sion broadcast interviews 
with his friends and associ- 
ates, and songs praising his 
revolutionary qualities blared 
continuously from radios and 
outdoor loudspeakers. 

Many of the commemor- 
ations hod a quasi-religious 
character, attesting to the 

ideological use to which 
Guevara's image has been put 
by his fo rmer comrades. 

One song played over and 
over praises * 'San Ernesto de 
la Higuera," referring to the 
Bolivian town where the 
guerrilla leader was killed on 
Oct. 9, 1967, and a popular T- 
shirt being worn here im- 
plored. “Che: May your ex- 
ample descend on my city.” 

Santa Clara, a provincial 
capital in central Cuba, 250 
kilometers (150 miles) east of 
Havana, was chosen as the 
final interment site because it 
is the place Guevara scored a 
decisive victory ■ in the 
struggle against the dictator- 
ship of Ftugencio Batista. - 

His capture of an armored 
train loaded with weapons 
here on Dec. 29, 1958, was 
followed within days by the 
triumphant entry into the Cu- 
ban capital of Mr, Castro and 
his rebel army. 

By the mid-1960s, 
Guevara had tired of his re- 
sponsibilities brae and set out 

to foment revolution else- 
where in the Third World. 

A first attempt in the 
Congo failed spectacularly 
after less than a year, and a 
second effort in Bolivia, in- 
tended to set off uprisings 
throughout South America, 
ended with the liquidation of 
his small band of supporters 
and Guevara's capture. 

His burial site, at the edge 
of an airstrip outside the town 
of Vaiiegrande, was kepi 
secret so that it would not 
become a leftist pilgrimage. 

And for years there was 
speculation that the 'revolu- 
tionary's body had been 
cremated and his ashes 

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Nevertheless, the measure 
has been on life support after 
Senator Trent Lott, Repub- 
lican of Mississippi, the ma- 
jority leader, blocked any up- 
or-down votes on it, probably 
for the rest of the year. 

That dozens of disparate 
groups have joined coalitions 
on both sides of (he issue, 
however, suggests that the 

K edural votes the Senate 
this month are unlikely 
to be the last word. 

To be sure, the brunt of the 
special-interest lobbying has 
fallen to a handful of groups. 
Common Cause, a public-in- 
terest group, has led the 
forces for change, while an 
unlikely coalition, including 
the American Civil Liberties 
Union and the National Rifle 
Association, has aligned itself 
with legislators fighting the 

Both sides say their goal is 
to make it easier for more 
Americans to get involved in 

the political process, increase 
the amount of information 
available and have more com- 
petitive races. 

But one side’s efforts to 
curtail Washington's chase 
for campaign dollars repre- 
sent a threat to the other side's 
ability to spend as much 
money as it wants to exercise 
its right to political free 

“We can’t make certain 
voices speak louder and cer- 
tain voices speak softer," 
said Laura Murphy, director 
of the Washington office of- 
die American Civil Liberties 
Union. “Voters should not be 
treated as dimwits. Just be- 
cause some group can flood 
the airwaves with its message 
doesn’t mean the voters can’t 
see through that." 

In many cases, groups that 
back the bill say it would put 
their members on more of an 
equal footing with wealthier 

Gore Denounced Over "Ellen' 

WASHINGTON — Vice President A1 Gore has been 
denounced by conservative groups for praising the tele- 
vision show "Ellen” for promoting a more open attitude 
toward gay people. 

The conservatives accused Mr. Gore of pandering to 
Hollywood and its legions of Democratic donors. Bui his 
remarks to an entertainment industry group Thursday 
were widely praised by gay organizations and under- 
scored the efforts the vice president has made in recent 
months to cultivate an increasingly important Democratic 

In his speech to the Hollywood Radio and Television 
Society. Mr. Gore said that “when the character Ellen 
‘came out,’ millions of Americans were forced to look at 
sexual orientation in a more open lighL” 

The ABC comedy has been the subject of controversy 
since die episode lost spring in which the main chancier 
announced she is gay. The show’s star. Ellen DeGeneres, 
also announced that she is a lesbian. ( H Fj 

Clinton Financing: The Videos 

WASHINGTON — In one scene. President Bill Clin- 
ton is delivering a blunt atiack. on the Whitewater pros- 
ecutor, Kenneth Stan 1 , complaining that his investigation 
is reaching beyond its proper scope. In another scene, the 
president is describing haw Democratic Parry- financed 
issue ads ore elevating his standing in the polls. Another 
clip shows him chumming up lo the Macao real estate 
tycoon suspected of bankrolling improper foreign con- 
tributions that the Democratic Party later had to return. 

So far, at least, there appears to be no single bombshell, 
no single outrage among the reels of videotapes released by 
the White House and made available to reporters. But from 
the collection of coffee klai&chcs and political soirees 
captured in 90 hours of fund-raising footage, a picture 
emerges of a president exceptionally adept and un- 
abashedly candid abouL his pursuit of big-moncy donors. 

One video shows the president with Yah Lin (Charlie) 
Trie, the Little Rock restaurateur who became a fund- 
raising globetrotter and is now being investigated by the 
FBI, and his Macao partner, Ng Lap Seng. Mr. Clinton 
has his arm around Mr. Ng. I WP) 

Quote /Unquote 

Jimmy Carter, in Atlanta over the weekend at a 20-vear 
reunion of his White House, joking about being called the 
nation’s “greatest ex-president": “1 kind of like to set 
aside the term ‘ex! in brackets." (API 

Away From Politics 

• The premiums that most Americans pay for health 
insurance are poised to rise 5 percent next year after four 
years of near stability, industry groups- reported. (ATT) 

• At least 26 states have adopted laws regulating the 
use of genetic test results by insurers and employers, the 
National Conference of State Legislatures said. (NYT) 

• Ultralight planes led four whooping cranes into New 
Mexico, near the end of an 800-mile journey from Idaho 
to teach the endangered birds how to migrate. (AP) 

Seas Of Hope.... 

More than 1000 whales will be killed in the next 12 months. 

This week, the International Whaling Commission (IWC) meets in 
Monaco to debate the future of the world's remaining whales. 

Eleven years after the IWC moratorium on commercial whaling, Norwav 
and Japan are still bending the rules to catch an ever-increasing number of 
whales. The IWC is increasingly sidelined as the whalers decide themselves 
how many whales to kill. 

Japan is catching over 500 whales in the Southern Ocean Sanctuary and 
the North Pacific for so-called "scientific " purposes and Norway exempted 
itself from the moratorium decision to catch whales in die North Atlantic. 

Twenty-three nations voted for the Southern Ocean 'sanctuary. Only 
Japan voted against and only Japan is defying the wishes of the nations of the 
world by whaling there. Norway should respect the wishes of its neighbours 

within the European Union who stopped 
Only decisive action from the non-whaling whaling long ago’. 

countries will make a difference. 

..Act Now! 

International Fund 
for Animal Welfare 




A Rare Look at North Korea Reveals Ubiquitous Signs o 


By Keith B. Richburg 

Wufti/iflfflH Past Service 

HAMHUNG, North Korea — A visit 
to this remote and desolate city near 
North Korea's eastern coast provides a 
rare glimpse of the country’s nearly total 
economic collapse. The crisis is over 
food — or the lack of it — t but the 
country’s problems ran much deeper, to 
the core of a communist system that has 
simply ceased to function. 

You can start at Hamhung's local 
hospital, a dilapidated, cavernous 1 ,000- 
bed faciliiy without lights, where the 
stench of urine tills die dark corridors 
and patients recovering from surgery 
writhe in pain on dirty sheets in unheated 
rooms. There are no antibiotics, no in- 
travenous drips and no stretchers, so 
workers carry patients on their backs. 
There were only 250 patients during a 
recent visit; few sick people bother com- 
ing. since the hospital has no food and no 

“We have a shortage of anesthesia, so 
the patients have to go through pain 
during surgery,” said die deputy d«- 1 
rector of the hospital, Lee HuynMyung, 
pointing to a man gripping his mattress 
after a colon operation. Most of the 
patients have rectal, stomach car liver 
problems, the result of slow starvation, 
he said. Almost all are malnourished. 

From the hospital you can travel past 
gray cement buildings that look half- 
finished or simply abandoned, past lots 
strewed with broken-down Soviet-era 
trucks that cannot be started because 
there are no spare parts. .Then drive 
down narrow, winding mud roads until 
you reach the Hamhung orphanage and 
talk to its director, Choi Kwang Oak. 

The orphanage is divided into several 
small rooms, with playpens for the smal- 
lest infants. Almost all the children are 
malnourished, with browning hair, bald 
patches on their scalps and sores on their 
heads and faces. The most severely mal- 
nourished are listless and unresponsive. 

There are 198 children under the age 
of 4 at the orphanage, and about 20 
percent arts expected to die because they 
arrived too late to be helped About 70 
percent of die children here were 
oiphaned when their parents died of 
malnutrition or disease. Miss Choi said 
The other 30 percent simply were aban- 
doned and left for dead by parents too 
poor and too hungry to feed them. 

“Some parents just put them outside 
' on the street and leave them to nature,” 
she said “Sometimes people pick than 
up and bring them here.* And other- 
wise? “They just die.” 

The orphanage is surrounded by high 
hills covered with graves and stone 
markers. It is an old burial ground she 
said But there are many new graves. 

Elsewhere, the scenes of deprivation 
and hardship are omnipresent. There is a 
massive 1950s hotel in the town, but it is 
cold and apparently empty. Since power 

is rationed the electricity has been 

turned off. 

There are factories here, but they 
stand idle. No smoke comes from the 
chimneys; there is no activity inside the 
gates! Outside, people mill around ap- 
parently with little to do. Nearly every- 
one here — hospital workers, hotel em- 
ployees, even the official government 
guides — talked openly about the fuel 
shortage and lack of electricity. 

Not even the capital Pyongyang, 
about 200 kilometers (120 miles) to die 
southwest, is immune from the hardship, 
even though it has long been maintained 
as a showcase city for outsiders to wit- 
ness the apparent success of the coun- 
try's socialist system. Diplomats and aid 
workers say some parts of the city have 
been without water for days. Electricity 
is strictly rationed and floodlights are 
turned off at some of the towering monu- 
ments early in the evenings. By 10 PA!., 

- the city is plunged into darkness, with no 
street lights on ami no lights visible from 
high-rise apartment buildings. 

What you also see are bicycles. Vis- 

■ iters to North Korea before die famine 
marveled at die lack of bicycles on the 
streets, even as people walked for miles 
or waited endlessly for buses. Bicycles 
were officially discouraged since they 
promoted individualism and could allow 
people to move more freely. But now 
that fiiel imports from the former Soviet 
Union have stopped and with -North 
Korea larking hard currency to buy what 
it needs on the world market, many 
people use bicycles. _ 

Last week. Representative Tony Hall 
Democrat of Ohio, and another visitor 
were permitted an unusual look behind 
the regime's wall of secrecy, traveling 
into areas rarely seen by. outsiders. 

in gHflifion to H amhung , there was a 
th ree-a nd-a-half-hour trip north from 
Pyongyang on the country’s main north- 
south highway into the rugged moun- 
tains of Chagang Province. 

From a helicopter, die extent of the 
drought damage was apparent — dry 
brown earth in many areas, as well as 

Malaysians Rally Around Mahathir 

By Thomas Fuller 

International Herald Tribune 

KUALA LUMPUR — Amid pros- 
pects of rising prices and slower eco- 
nomic growth, Malaysians have taken to 
the streets. But far from demanding a 
change in government, these demonstra- 
tors are proclaiming their support for their 
prime minister, Mahathir bin Mohamad 

The demonstrations are relatively 
small, usually from several hundred to a 
few thousand people, but the message is 
clear “Dr. Mahathir will be with us until 
kingdom come,' ’ said Kirpal Singh, who 
helped organize a show of support Sun- 
day on behalf of the country's Sikhs. 

“We strongly support him, and we 
don't question his leadership at all,” Mr. 
Singh said. 

For three days last week, 30,000 bank 
employees sported large badges em- 
blazoned with messages of support for 
the prime minister. 

Mr. Mahathir also is greeted almost 
daily by supporters carrying placards 
saying “Do Not Fear the West, Ma- 
hathir” and “Continue Being the Third 
World Hero, Mahathir.” 

At a rally over the weekend, more 
than 10.000 supporters showed up for an 
event that Mr. Mahathir, who is ill with 
the flu, did not attend. 

At the Sikh rally Sunday, Mr. Singh sat 
in a dining hall that is part of the group’s 
community center in Kuala Lumpur. 
Next to him were fellow organizers of die 
rally — all of whom said they traveled 
abroad regularly and owned shares in 

Malaysian companies. The fall in the 
value of Malaysia's currency, die ringgit, 
means foreign travel is about 30 percent 
more expensive than it was three months 
i, and the value of blue-chip stocks has 
uxnmeted around 40 percent since the 

lut Mr. Singh is far from despondent 
or angry. “The ringgit is down, but we 
are not down,” he says. 

Mr. Mahathir has been attracting 
worldwide attention, with the leader of 
this relatively small country of 21 mil- 
lion people featured on the covers and 
front pages of international newspapers 
and magazines. 

But the prime minister's supporters 
say the international press has portrayed 
Mr. Mahathir in a negative light and 
accuse foreign magsT-inas of meddling 
In Malaysia’s internal affairs. 

After 16 years in power, and amid an 
enduring financ ial crisis, it might seem 
normal in a democracy for opposition 
leaders to demand that Mr. Mahathir, 71, 
step down. In neighboring Thailand in 
recent weeks, many newspapers and op- 
position leaders have called for their 
prime minister’s resignation after 
months of financial turmoil. 

But no influential figure in Malaysia 
has publicly called fra- this prime min- 
ister's resignation or even hinted that Mr. 
Mahathir should cede power to his 
anointed successor, Anwar Ibrahim, the 
deputy prime minis ter. 

Even the opposition leader, Tim Kit 
Siang, in proposing last week that a vote 
of confidence be considered in Parlia- 

ment, emphasized that his Democratic 
Action Party was not calling for Mr. 
Mahathir to step down. 

Nik Aziz, the chief minister of 
Kelantan, the only state in Malaysia con- 
trolled by an opposition party, also has 
rejected any such call 

“When our country is in crisis, we 
must unite," he said. 

Any suggestions that Mr. Mahathir 
should step down have coroe mostly 
from the international press. Time 
magazine a few weeks ago published a 
flattering portrait of Mr. Anwar and said 
on the cover of its regional edition; 
“Malaysia's No. 2 is the star of a rising 
generation of leaders, but will Mahathir 
give him a chance?” 

Both the Time article and other recent 
comments in foreign publications raised 
a stir in Malaysia, prompting Mr. Ma- 
hathir to weigh in. 

“If you want to throw out this leader 
just because a certain magarir»> says this 
leader is no good, there goes democ- 
racy,” he said. ‘The truth is, it has never 
crossed my min d to resign.” 

Newspapers print letters from readers 
supporting the prime minis ter. One re- 
cent letter to the New Straits Tunes was 
tided “Reflections on a Man of Rare 

“Malaysian culture, that of the 
Malays in particular, does notallow us to 
forsake a person when he is down,” the 
letter said “We rally around and help 
him to get up — especially a person of 
Dr. Mahathir’s stature who has done so 
much for Malaysia and its people.” 

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BATTLE CRY — Two soldiers practicing kung fu Sunday In Beijing. 

TRADE: Feud Over Ports Revives Confrontational Tone for U.S. and Japan 

Continued from Page 1 

with a fair amount of frequency.” 

That does not bode well far re- 
lations between Washington and 
Tokyo in coming months because, 
after about two years of relative 
calm on the trade front, conditions 
appear ripe for renewed frictions. 

Japan’s exports of auto sand oth- 
er products have been soaring, 
paruy because of the strength of the 
dollar against the yen, which makes 
Japanese goods more competitive. 

At the same time, its sluggish 

\\ ho i> sna|>|>in<>' 
u j > lu\ur\ homo 
in l > ari>'.' 

/ mil mi f f It hdicr 

in tin nn \ 

*'fnHI'nit ill s *<-( tinn 
nil I ii\iii\ Hi nt I state. 


economy has caused Japanese pur- 
chases of foreign goods to slow. 

U.S. trade negotiators prefer to 
wield sanction threats sparingly 
lest they arouse undue resentment, 
.and White House officials ac- 
knowledge that they were taken 
aback Thursday when the Maritime 
Commission invoked something 
akin to the nuclear option over one 
of the less significant .bones of con- 
tention between the two sides. 

The commission maintained that 
it had been sorely provoked, be- 
cause although it had levied $4 
million in fines on three Japanese 
shipping companies in retaliation 
for Japan's restrictive port prac- 
tices, the firms had failed to pay by 
the Wednesday deadline. 

Other figures in the dispute 
noted that the Japanese companies 
had offered to pay the fines into an 
escrow fund that the commission 
would control, so perhaps the com- 
mission was grandstanding to pro- 
tect itself against congressional ini- 
tiatives to abolish it. 

Whatever the commission's mo- 
tivation, a senior U.S. official said, 
“we’ve seen again that it took the 
prospect of having to pay the fines, 

and eventually the prospect of 
something even more dramatic, to 
really get the people in Tokyo fo- 
cused and willing to resolve this.” 

“We had a very strong case in 
this instance.” the official added. 
“The Japanese government 'knew 
it, and the Japanese carriers them- 
selves thought so. And other coun- 
tries, notably die Europeans, were 

In cases where Japan considers 
the United States to be off base, it 
has become increasingly willing to 
stand up to U.S. bluster. 

A prune example was the dis- 
pute over auto trade in J 995. 

Tokyo, faced with the threat of 
huge U.S. tariffs on Japanese lux- 
ury cars, refused to yield to many 
of Washington’s demands for in- 
creasing Japanese purchases of 
American autos and auto parts. 

The demands were widely crit- 
icized as being tantamount to gov- 
ernment-mandated import targets. 
The two sides ended up papering 
over their differences. 

In the shipping dispute, by con- 
trast, Tokyo was ham pressed to 
defend the monopoly over its pons 
held by the Japan Harbor Transport 

Association, a group of stevedore 
companies with reputed organized 
crime links. Indeed, Japanese ne- 
gotiators maintained that their con- 
cessions Friday were driven by a 
growing internal consensus in fa- 
vor of drastic change at the ports. 

“I think there’s been a misper- 
ception all the way through that 
sanctions are the driving force for 
reform in Japanese ports,” said 
Koji Tsnruoka, a' Foreign Ministry 
official responsible for U.S. -Japan 
economic issues. 

“This couldn’t have happened if 
there was no support overall for 
deregulation, which is now one of 
the major objectives of the Jap- 
anese government," he said. 

Noting that Japanese shipping 
companies share the same com- 
plaints about Japan's extraordi- 
narily expensive ports that U.S. 
companies do, Mr. Tsuruoka said 
the agreement Friday to open the 
ports to competition resulted from 
the Japanese and U.S. companies 
joining forces on a government-led 
council that has forced the Harbor 
Transport Association to yield on 
many important issues in recent 

dried-up riverbeds and hills that had 
been cleared of all trees. Years of over- 
use of petroleum-based fertilizers have 
destroyed much of die arable land, ex- 
perts say, and hills have been stripped of - 
their topsoil because farmers use it to . " 
cover paddy fields, causing increased 
flooding in the plain- ■ v 

On the ground, the damage becomes 
more evident Buildings look abandoned ; 
or unfinished; sprawling factories have 
Men into disuse and concrete buildings • 
are missing laCrge sections. 

What emerged from the three-day 
trip, conducted mostly in the presence of 
■government escorts, was a snapshot of a 
country in economic free fall and a sur- 
prising willingness on the part of the - 
authorities to allow outsiders to see even 
the worst of the crisis — like the hospital - 
in Hamhung. 

"What you saw is pretty wide- M 
spread,” said O. Omawale, the special T _ 
representative in North Korea for the 
United Nations Children’s Fund. 

North Korea’s predicament largely 
has been portrayed as a massive food 
shortage brought on by twin natural dis- • • 
asters — destructive floods last year 
followed by this year’s drought and rec- 
ord-high summer temperatures. But 
what became apparent on the trip was - 
that the food crisis is just part of an- 
overall breakdown of the country’s 
stale-controlled and centrally planned 
system. It has been along and painfully 
slow descent that began with the col- 
lapse of the Soviet Union in 1991 and the 
loss of invaluable subsidies, petroleum 
and. a principal export market 

Relief workers in Pyongyang say the 
food crisis, reaching famine proportions 
in some areas of the remote ana moun- 
tainous north-central provinces, is just 
one more sign of a total systemic col- 
lapse. “It’s a laige economic crisis, but •’ 
it's not being addressed,” said Christian 
Lemaire, resident representative of the • 

UN Development Program. 

The government does not seem to- 
have a strategy for what to do to stop the . 
free fall. 

One of the world’s last Marxist states, . 
North Korea in many ways resembles a - 
theocracy more than a doctrinaire so- 
cialist state, with the country’s late 
founder and revered “Great Leader,” 

Kim H Sung, as its high priest His 
portrait still hangs everywhere — even . |A 
over the hospital in Hamhung — and the- P*' 
north-sou th highway is lined with bill- - - 

boards extolling his exploits. 

Mr. Kim’s guiding philosophy — 
juche or self-reliance — propelled the 
country to industrialize in die 1950s and 
’60s. But it also has made it difficult for ■ 
North Korea’s secretive rulers to admit 
to outsidersjthe extent of the crisis and to 
ask for help. 

On Oct 8, three years after the death 
of Kim H Sung, his son, Kim Jong II. 
officially took over leadership of the 
ruling Korean Wotkers’ Party. 

- Now, some analysts are wondering 
whether , the son might be willing to j 
break from some of the country's so- < 
cialist practices and adopt the kind of * 
reforms needed for the country to sur- j ^ 
vive. i. • 

Some relief workers here claim to see ? 
■some early, tentative signs of an open - 1 
mg. They say there are now six foreign ? 
relief agencies in Pyongyang and the J 
outlying provinces; a year ago there} 
were none. *" * 

John Prout, deputy director of the I , 
World Food Program in North Korea, Iff, 
said his group had been to. 1 10 of the Jtf 
country’s 209 counties. ? 

At the same time, farmers in the hard- I 
hit northern provinces, particularly near j 
the Chinese border, have been told to \ 
fend for themselves, allowing them ro } 
trade privately with China. With help] 
from the UN Development Program, i 
there have been a few scattered exper- j 
intents with ‘'micro-credit,” providing ■ 
money to individual households to buy J 
chickens or goats and allowing them to j 
sell the eggs or milk on the open mar- J 
keL 1 \ 

Some North Korean farmers are said < 
to be “double-cropping,” or planting ! . 
twice each year — a practice long for- n 
bidden by Kim II Sung. And some North ^ 
Korea analysts in the United States re- 1 
port that massive collective farms have * : 
been reduced in size. j 

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100 Tamil Rebels Killed at Sea 

COLOMBO — At least 100 Tamil Tiger rebels and 
rtro Sn Lankan Navy personnel were believed killed in a 
five-hour sea battle off the country’s eastern coast, navy 
officials said Sunday. 

A statement from the Defense Ministry said seven 
rebel brats were sunk in a battle that began late Saturday 
alter a fleet of naval vessels confronted three groups of 
refoel boats carrying Large numbers of Tamil Tiger guer- 
rillas from the city of Pulmoddai. e 

. Naval officials said earlier that a convoy of guerrilla 

boats _ 1 ^ d aoacked a government craft that was on patrol 
near PalmoddaL (Return) 

Japan Aids in Singapore Spill 

j ® m e 7 Japan f ! cw “ more equipment Sun- 

Wf Singapore s worst oil spill as nearly 50 
brats tried to clean up 25,000 tons of fiiel oil, officials 

J [ a P an bad flown, in two more skimmers, 
“f 10 coUect oil and pump it into a 

to the four sent by the Petroleum Association 
Trtl? J ? me ^. the clean U P operation Saturday. 

damage to the environment Y 10 

For the Record 

E^^nSn^Jf ad f lrj Tun * Chee-hwa, left for 
makea P itch “ Brussels and London 
S EES35 and to tty to find homes 

SdhfS?SS2?^ !,ieie rtfu8ees who ^ ^ stran - 

ded rathe territory. (Reuters) 



of Coll 



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* Irish Pr esidential Election Enlivened by Feud Over Sinn Fein 

James F. Clarity 

DUBLIN — The presidential elec- 
tion campaign here L erupted^ a 
national debate over the outlawed Irish 

Sin^Feb 11 Amiy 30(1 its P^cal wing. 

about Sinn Fein's commitment to an end 
of the sectarian violence that has killed 
more than 3.200 people in Northern 
Ireland since 1969. 

The IRA has declared a cease-fire, 
but the ultimate goal of both organi- 
zations remains a united Ireland free of 
British control, and this is a major issue 
at the peace talks now under way in 

Until last week, the presidential cam- 
paign had been maundering along to- 

In Kosovo, War by Night 

Ethnic Albanian Insurgents Battle the Serbs 

By Chris Hedges 

New Yurk Tima Sen-ice 

shadowy ethnic Albanian guerrilla force 
that overran 11 Serbian police stations 
last month, in its first large coordinated 
attack, appears not only flush with newly 
acquired weapons, but also ready to wage 
a secessionist war that could plunge this 
country into a crisis rivaling the long civil 
war in Bosnia-Herzegovina. 

Villagers in the southern Serbian 
province of Kosovo, whose population 
is more than 90 percent ethnic Albanian, 
say that when darkness falls, wide tracts 
. of this area now belong to rebels of the 

t Kosovo Liberation Army. 

“As soon as it is night,** said one 
farmer who asked to remain unidentified, 
“this becomes liberated territory.’’ 

The rebels, who advocate indepen- 
dence from Serbia and an eventual vote 
on joining Albania, have been seen 
coming down from the scrub-covered 
mountains in the evenings with mules 
laboring under the weight of new auto- 
matic weapons, many smuggled in from 

They now control some dirt roads no 
longer used by the Serbian police, who 
only approach these hills by daylight 
packed safely inside armored personnel 

And, for the first time since the at- 
tacks began nearly 18 months ago, the 
.. rebels have pushed back the Serbian 
^ authorities far enough (o carve out re- 
mote mountain sanctuaries, which they 
use as bases for their anacks. 

In three days of traveling these hills, 
dotted with farming villages of white- 
washed clay houses with tiled roofs, dirt 
yards filled with chickens and legions of 
barefoot children, it was impossible to 
make contact with the guerrillas. 

But their presence was often felt in the 
nervous answers, sidelong glances and 
throaty whispers that met inquiries as to 

where they could be found. And, in one 
village after another, residents said that 
the rebel presence was felt at night. 

The rise of the guerrilla movement 
appears to mark a dangerous crumbling 
of support in Kosovo for the nonviolent 
civil disobedience campaign led by 
Ibrahim Rugova since 1^89, when the 
Serbian government revoked the 
province's autonomous status. 

Since then, Kosovo’s 2.2 million eth- 
nic Albanians have dodged the draft, 
refused ro pay taxes and boycotted state 
institutions, including schools and hos- 
pitals. A shadow government, whose 
goal is -the restoration of autonomy for 
Kosovo, has- set up its own parallel 
institutions, although some of them 
have bad to shut down for lack of 

The rebel attacks, as well as the recent 
killings of four Serbian police officers 
and five civilian officials, came as 
Western diplomats have reported that 
hundreds, perhaps thousands, of the 
650.000 weapons looted in Albania dur- 
ing unrest this year have been smuggled 
into Kosovo. 

The attacks on the 1 1 police stations 
also netted the guerrillas a few hundred 
assault rifles, the diplomats said. 

More than 30 people, Albanians and 
Serbs, have been killed in rebel attacks. 
The increasing violence has coincided 
with a challenge by university students 
in Pristina, the capital of Kosovo, to Mr. 
Rugova's ban on street demonstrations, 
the first public defiance of his author- 

On Oct. 1 , about 3.000 students of the 
underground Albanian university 
framed in 1989, who were demanding 
that Pristina University be returned to 
ethnic Albanian control, tried to march 
through the city. They were scattered by 
baton-wielding Serbian police and 50 
people were injured. 

The students are planning more 
marches later this month. The university 

waid the Oct 30 election with five 
candidates contending for the largely 
ceremonial post, all professing their 
dedication to tile nation. Of equal in- 
terest seemed to be whether Ireland's 
soccer team would qualify for the World 
Cup next year. 

The four women candidates seemed 
to be imita ting the style of Mary Robin- 
son, who left the job after a seven-year 
tom to become United Nations high 
commissioner for human rights. They 

all started wearing the longish jackets 
and short hair favored by Mrs. Robin- 

Some even sounded .like they ’were 
using the high-minded phrases of Mis. 
Robinson, a former senator and accom- 
plished civil rights lawyer. 

Only one of the candidates. Mary 
McAleese, who is leading in opinion 
polls, is a college graduate, a law pro- 
fessor at Queens University in Belfast 
The Irish Constitution permits any cit- 

Agcnct France -P iliw 

JOURNALIST SPEAKS OUT — Pavel Sheremet, a Moscow tele- 
vision reporter awaiting trial in Belorussia on border-crossing charges, 
addressing a rally to criticize new curbs on the Belorussian media. 

is now run by Serbs who refuse to hold 
classes in Alb anian, and all of its 18,000 
students are Serbs. 

“If students are killed in these 
protests,'* a Western diplomat said, “it 
could be enough to ignite a population 
that has fallen into terrible poverty, is 
fed up with what has become Serb co- 
lonial occupation and has lost faith in its 

moderate leadership. This is a very del- 
icate moment.” 

But it is in remote villages that toe 
next round will probably be fought In 
these areas there is a striking shortage of 
young men. Some are working abroad, 
in Germany or Switzerland, and sending 
back meager remittances. But others 
have clearly gone into hiding. 

izen of toe island of Ireland — Northern 
or the Irish Republic — to run. 

The one man, Derek Nally, 61, a 
retired police sergeant who is running as 
an independent, wore dark suits and 
white shirts but sparked no fire in wbai 
most people felt was a soporific cam- 

Then he found toe issue that has 
brought toe campaign to life. 

Mr. Nally charged, in effect, that Ms. 
McAleese. 45. was a closet supporter of 
toe IRA and Sinn Fein. 

This Is a volatile charge in toe Irish 
Republic, where Sinn Fein receives 
only 2 percent of the national vote. Mr. 
Nally’ s charge was based on a memor- 
andum written by Dymphna Hayes, a 
Foreign Affairs Department official 
who had spoken ro Ms. McAleese last 

It said that Ms. McAleese seemed 
sympathetic to Sinn Fein, approving of 
its election gains in Northern Ireland, 
even before the IRA restored its cease- 
fire on July 20. 

The truce cleared the way for Sinn 
Fein to enter the broad-based peace 
talks in Belfast, toe first time since 
Ireland was partitioned 75 years ago that 
the largely Roman Catholic -Sinn Fein 
has sat at a negotiating table with Prot- 
estant unionist leaders, discussing toe 
future of toe predominantly Protestant 
British province of Northern Ireland. 

Mr. Nally questioned whether Ms. 
McAleese was “a proper person" to be 

“Like me,” he said in a statement last 
week, “most Irish people would never 
vote for Sinn Fein, peace process or no 
peace process, because they have been 
carrying on a murder campaign for 25 
years. Mary McAleese seems to work 
on a different set of moral assump- 

She responded by saying of toe IRA, 
“I’ve no time for them in any shape or 

But she did not deny outright her 
attitude toward Sinn Fein as represented 
in toe Hayes memo. In recent days she 
has emphasized that while she is a de- 
vout Catholic and her family, which had 
run a pub in Belfast, had been forced to 
move south to toe Irish Republic by 
attacks by Protestant paramilitaries, 
many of her closest friends in Northern 
Ireland, where she grew up and now 
lives again, are Protestants, members of 
parties that want toe North to remain 

In toe June election, Sinn Fein won 
one seat in toe 166-member Irish Par- 
liament In toe last three days, toe dis- 
pute has moved into Parliament where 
Prime Minister Bertie Ahem, whose 
Fianna Fail party nominated Ms. 
McAleese, has been accused by toe op- 
position of poor judgment in selecting 


Peace Envoy Assails 
Serbs on TV Cutoff 

SARAJEVO. Bosnia-Heizego- 
vina — The international peace en- 
voy Carlos Westendorp con- 
demned hard-line Bosnian Serb 
nationalists Sunday for sabotaging 
a key television transmitter to pre- 
vent their rivals from gaining ac- 
cess to toe airwaves. 

No television programming 
could be seen on toe official Ser- 
bian frequency in the eastern part of 
Bosnia’s Serbian territory after vi- 
tal equipment was removed over 
the weekend from toe transmitter 
on Mount Zep. Simon Haselock, a 
spokesman for Mr. Westendorp. 
called it a “wanton act of van- 
dalism.” (Reuters) 

Election in Galicia 

POSTELA, Spain — Voters in toe 
northwest region of Galicia cast 
ballots Sunday in elections for a 
regional Parliament that will test 
the popularity of the government 
for the first time since it took power 
1 8 months ago. 

A total of 75 deputies arc to be 
elected to toe autonomous region’s 
Parliament. They will designate toe 
regional president. (AFP) 

Montenegrins Vote 

BELGRADE — Montenegrins 
voted Sunday at toe end of a pres- 
idential election campaign in which 
toe Yugoslav republic's two top 
political leaders tarnished each oth- 
er with accusations of corruption. 

The early turnout was heavy 
after a first round two weeks ago 
when toe incumbent, Moniir Bu- 
latovic. led Prime Minister Milo 
Djukanovic by 2,500 votes. First 
official results were expected Mon- 
day. f Reuters) 

Priebke’s Transfer 

ROME — Erich Priebke, toe 
former Nazi officer convicted of toe 
1944 killing s of 335 civilians, was 
transferred Sunday from a monas- 
tery to Celio military hospital here. 

The ANSA news agency said 
Mr. Priebke had been removed 
from toe Franciscan monastery at- 
Frascati. He had contested toe 
move, citing his fragile psycholo- 
gical condition. (AP ) 



jtlf'- ■- ■ 

r ^ r 

t £ -r •• 


Return to 




v w« 

The Soka Gakkai s Youth Peace Conference 
(YPC) thanks the many individuals who 
contributed to its refugee- relief fund-raising 
drive last year. Those funds have helped retugees 
and displaced people in Rwanda, the former 
Yugoslavia, Somalia, Ethiopia, and NepaL . 

Today, more than 22 million people in the 
world have abandoned their homes and 
homelands because of the threat ot waror 
persecution, or because of natural disasters. One 
out of 225 people worldwide is a refugee. 

Working in consultation with the United 
Nations High Commissioner for Refugees 
t UNHCR), the YPC decided to focus i ts attention 
this year on eastern Nepal, where refugees from 
Bhutan are encamped. 

The YPC several months ago donated funds for 
medical personnel and equipment for hospitals in 
that region in an effort to boost the overall capacity 
of area hospitals in eastern Nepal. Through these 
actions, the YPC supports the UNHCR’s goal of 
enabling the world’s refugees to return home in 
conditions of safety and dignity. 

The Youth Peace Conference has more than 
■ two decades of experience aiding refugees and 
displaced individuals. Since 1973 it has held 17 
fund-raising drives. Your contributions to the 
YPC s campaign are welcomed. All donated funds 
go directly to refugee relief; the YPC’s 
administrative costs are provided by the Soka 
Gakkai. To donate, please transfer funds to the 
following account: 

Nanmin Kyuen Kyanpein, Account No. 041 61 072, Tokyo Mitsubishi Bank, Yotsuya branch, Tokyo, Japan. 

r L-kii is the Japanese affiliate of the Soka Gakkai International (SGI), an association of more than 
The Soka oaKKai . L ^ untries w hich conduct activities for peace, education and cultural exchange based 
12 million , ol - But jdhisi humanism. For more information, please contact the Youth Peace 

Conference at 8 1 -3-5360 -9893 or visit the SGI website at • 

Soka G^kai u Td 81-3-5360-9830 Fax: 81-3-5360-9885. Photos by UNHCR. (Girl) A. Hollman, 1 Boys) P.Press 


v,v:: 4 * v 








A NATO Rationale 

Here Comes Jiang, and CUnton Isn’t Ready 

The Foreign Relations Committee 
of die U.S. Senate has been picking 
over the crucial operational and polit- 
ical question of how much it will cost to 
enlarge NATO and who will pay. It is a 
question that touches all the other ques- 
tions of purpose and effect and is thus a 
tough one but a good one with which to 
•start the enlargement hearings. 

You will not be surprised to leam 
that the cost estimates vary, and that 
the estimates of those skeptical of en- 
largement arc higher than the numbers 
‘offered by advocates. So much higher 
in some instances, in fact, that the 
skeptics can be suspected of deploying 
the numbers to camouflage their real 
purpose of preempting enlargement It 
will lake more hard scrutiny — and 
more tough bargaining — to establish a 
zone of consensus. 

-Meanwhile, the Pentagon is suggest- 
ing that to bring in Poland, Hungary and 
the Czech Republic would, over a dozen 
years, cost less than a 10th of what 
NATO now costs for one year. That 
- figures to about $200 million annually 
for the United States. The sum comes 
■ out of an American-written burden- 
sharing proposal by which Americans 
would jay 6 percent of enlargement 
costs, die other 15 allies 44 percent and 
the three candidates 50 percent 

The Europeans in NATO are a long 
way from accepting these numbers aid 

the financial and political burdens they 
entail. Already the Europeans cannot 
agree to finance the modernization pro- 
grams — to give die alliance a future' 
expeditionary option — dial were con- 
sidered essential even before enlarge- 
ment came into the picture. As for the 
three (and any subsequent) candidates, 
they arrive at NATO’s door at a moment 
when entry costs have never been high- 
er and when they face urgent demands 
for nation-building on the civilian side. 
They will have to look deeply into 
themselves to put a price on the value of 
a step that is costly but central to their 
aspiration to join die West 
The hardest factor to calculate into 
cost is the threats the alliance should be 
preparing to counter. Here NATO has 
to get its act together and articulate a 
single, sensible and salable strategic 
rationale for eolazgemeoL 
There is a good and true one: to 
ensure die stability that will keep the 
family of democratic nations — old and 
new — prosperous, united and secure. 
This rationale goes beyond specific 
military scenarios into a zone where 
military and political considerations 
are entwined. It forces a judgment on 
the costs of integration as against the 
costs of drift This is die sort of choice 
that must engage alliance minds as the 
Seaate’s enlargement debate unfolds. 


Argentina’s Press 

President Bill Clinton’s three-day 
visit to Argentina was designed to cel- 
ebrate the dramatic improvement in 
that country's relations with the United 
States, an achievement of President 
Carlos Sadi Menem’s eight years in 
office. Those warmer ties are a wel- 
come change coming from a country 
that tilted toward the Axis powers in 
World War II. sheltered Nazis offer the 
war and denounced U.S. policies under 
the postwar dictator Juan Per6n and 
several of his successors. 

But Mr. CUnton erred by not using 
the new closeness to speak out more 
forcefully on behalf of Argentina's be- 
leaguered journalists. More than 800 
of diem have been threatened or phys- 
ically attacked during Mr. Menem’s 
presidency. In one notorious case this 
year, a news photographer was brutally 
murdered while covering the story of a 

business tycoon with friends in high 
political places. Mr. Clinton should 
have said that Argentina's new de- 
mocracy cannot be secure so long as 
those responsible for informing the 
public run such risks. Even his tepid 
proposal for new protections under the 
human rights authority of the Orga- 
nization of American States met an 
indifferent response. 

That fits a regrettable pattern. A few 
years ago. Mr. Menem proposed 
chillingly punitive libel laws, but he 
was forced to back off. More recently, 
his callous offhand remarks have 
seemed to condone violent assaults. 

Belated apologies have generally 
followed. But if Mr. Menem wants 
lasting friendship with the United 
States, he must leam to Uve in peace 
with a free press. 


Tyranny in Cambodia 

More than three months have passed 
since Hun Sen staged his coup in Cam- 
bodia. The elected prime minister was 
deposed and many of his supporters 
were executed or forced into exile. 
Since then, despite many virtuous 
! promises from Cambodia's strong- 
man, conditions have not improved. 
Human rights workers live in fear. 
Many opposition politicians remain 
abroad. The press is under assault. Just 
last week, the Information Ministry 
canceled a television show because its 
host had called the government un- 
democratic. Cambodians are paying a 
steep price for Hun Sen’s tyranny. 

After years of terrible civil war, their 
country had begun to put itself back 
together. Elections had been held un- 
der UN supervision. Investors from the 
far more vibrant economies of Cam- 
bodia’s neighbors in Southeast Asia 
had begun to build factories and hotels. 
Independent media and civic associ- 
ations were flourishing. Now the eco- 
nomy is in a tailspin. Many investors 
have* pulled out and show no inclin- 
ation to return. Foreign aid, which 
comprised half of Cambodia's budget, 
has been choked off. Internationally, 
Cambodia finds itself isolated — ex- 
cluded from the Association of South 
East Nations, unable to take its seat at 
the United Nations. 

That isolation, reflects a welcome 

consensus among most of the inter- 
national community that Hun Sen's ef- 
fort to undo the UN attempts at creating 
a democracy is not acceptable. There 
are some exceptions; Australia inex- 
plicably resumed most aid, for example. 
But most donors, led by the United 
States, so for have held firm. America is 
helping only nongovernmental organi- 
zations. Japan, although its public po- 
sition is weak, has reinstated some pro- 
jects but approved no new ones. 

The key, now that Cambodia has 
faded from the headlines, is for the 
international community to maintain a 
principled position. A sham election, 
for example, should not be enough for 
Hun Sen to win his way back to re- 
spectability. Elections, if held next 
spring, should be overseen by inter- 
national observers and a caretaker gov- - 
eminent, allowing free access to the 
media for all parties. Hun Sen’s polit- 
ical opposition must be allowed to re- 
turn, with no threat of bodily harm or 
show trials. And human rights orga- 
nizations and the press should be re- 
stored to their previous circumstances 
— even if they want to call Hun Sen 

Hun Sen's bluster notwithstanding, 
the international donors could make a 
big difference in shaping Cambodia’s 
future — if they stick together. 


Other Comment 

A Threat 10 Southeast Asia by many Southeast Asians. These 

people are not the new rich; they are the 
In most parts of [Southeast Asia], it still poor, who live in urban shanties 
has been the well-connected who have and slums or scratch a living in the 
got the plum concessions and the juid- countryside. Many already believe 
est contracts. No secret of this was made they have missed (Hit on the boom, 
during the boom. Now such cronyism is Now there will be more of them. The 
less fashionable, yet the carrels and inability of political systems to hear 
monopolies it bred (notably in Indone- their voices carries enormous risk, 
sia) arc still there. In time these links They will be tempted to seek scape- 
be tween the rich and the powerful will goats, perhaps among the ethnic 
have political consequences. Chinese who hold so much of South- 

They might have done already, had east Asia's wealth and have suffered so 
high economic growth not acted as a much terrible violence in the past 
buffer against the sense of injustice felt — The Economist (London). 

1\ cralb l^k fcnbim c 





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H ONOLlfLU — Next week's visit 
to the United States by the newly 
confirmed Chinese leader, Jiang 
Zerrtin, will be no ordinary state visit 
but rather a meticulously planned im- 
perial procession calculated to propel 
Mr. Jiang onto the center stage of the 
international arena. 

Shortly before President Jiang ar- 
rives, President Bill Clinton plans to 
give an address on China policy. Thai 
has sent Washington officials scurry- 
ing to look for modest agreements that 
he could sign. When asked wbat the 
administration hoped to achieve, a se- 
nior official in Washington offered 
only a platitude: “We hope and expect 
to achieve a strengthening of an im- 
portant bilateral relationship.’’ 

An Asian scholar who has delved 
into the culture of Chinese politics and 
international maneuvering said Mr. Ji- 
ang’s excursion “will be more sym- 
bolism than substance." But he added: 
“Symbols are far more important than 
substance in China’s grand strategy 
right now. especially in Beijing's re- 
lations with America." 

.The scholar emphasized “face." 
“Jiang's main purpose in this trip," he 
said, patting his cheek, “is to strengthen 
his reputation everywhere." 

Mr. Jiang will bring to the cable a 
solid record of recent Chinese accom- 
plishments. For a year, China’s dip- 
lomats have labored to improve re- 
lations with neighbors. They have 

By Richard Halloran 

fanned out in a circle running through 
Russia, North and South Korea, Japan, 
Southeast Asia and around through In- 
dia, Pakistan and the new Central Asian 
republics. To reinforce that diplomatic 
campaign. China's military forces are 
being slimmed but better armed. 

China’s economy has expanded by 
nearly 10 percent in die last year, the 
highest rate among the world’s big 
economies. And Chinese national pride 
is resurgent after the reversion of the 
fonrier British colony in Hong Kong. 

If Mr. Jiang were to paraphrase 
former President Ronald Reagan, who 
proclaimed that “America is tack” 
after the United States had begun to 
heal from the wounds of the Vietnam 
War, he might say that China is back 
after a century and a half of subser- 
vience to the West and Japan. 

Mr. Jiang will deliver three mes- 
sages, according to Chinese with ac- 
cess to high levels in Beijing. 

The first is for Mr. Clinton and will 
say that China has resumed its old place 
as the Middle Kingdom, the power in 
Asia with which the West must reckon. 
At the same time, he will signal that 
China really needs peace to achieve its 
plans for modernizing. 

The second message, for China’s 
neighbors, will be that they should see 
it as capable of playing in the same 

league as the world’s ■ superpower. 

The third message will be for polit- 
ical audiences back home. Mr. Jiang 
solidified his grip on power by ac- 
commodating conflicting factions, in 
the party, the bureaucracy and the 
army,.but he lacks the authority of his 
predecessors Mao Zedong and Deng 
Xiaoping.He seems determined now to 
demonstrate that he can operate with 
equal ski ll in die in ternati o nal arena. 

Mr. Jiang and Mr. Clinton will talk 
about Taiwan. China’s entry into the 
World Trade Organization, intellectual 
property rights, human rights, arms 
sales, navigation in the South China 
Sea, the trade imbalance, Chinese pris- 
on labor. North Korea, U.S. forces in 
Asia, and the future of Hong Kong. 

Washington officials say Mr. Jiang 
and Mr. CUnton might agree on further 
mili tary- to-miiit&ry exchanges, and 
possibly find ways to prevent incidents 
at sea when Chinese and U.S. warships 
sail close to one another. 

Whatever the case< the talks will be 
grist for a Chinese strategic mill In 
contrast. President Clinton appears to 
have not much more to offer than 
catchy slogans about “engagement" 

After the 1996 election, the admin- 
istration’s rhetoric was promising. A 
year later, it has done lime to suggest 
that it understands 'the profoand 
changes sur ging , through Asia. The 
president’s foreign policy team has not 
inspired belief that it has a compre- 

hensive, cohesive policy toward Asia. 

Soon after Mr. Clinton's re-election, 
he flew to Manila for an Asia-Pacim: 
Economic Cooperation summit “to ad- 
vance our strategic relationships with 
important leaders and to bring about 
the endorsement of important oade ini- 
tiatives," the White House said. 

In his State of the Union address in 
February, Mr. CUnton said: “America 
must look to the east no less than to the 
west Our security demands it — Our 
prosperity requires it." In particular, he 
cpid , “We, must pursue a deeper dia- 
logue with China.". . 

Reality has not lived up to the im- 
agery. Not until recently, for instance, 
did the administration have an assistant 
secretary of state for East Asia, the key 
position in the foreign policy apparatus. 
Nor does it have an ambassador to Ja- 
pan, the linchpin of the U.S. security 
posture in Asia, or an ambassador to 
South Korea, where America has 35,000 
troops. Diplomats have kept things run- 
ning, but the word to Asia is clean The 
administration doesn't care. 

Moral of this lopsided tale: Wake up, 
Washington, you are about to get struck 
by a locomotive roaring out of its 

The writer, formerly with The New 
York Times as a foreign correspondent 
in Asia and a military correspondent in 
Washington, contributed this comment 
to the International Herald Tribune. 

Leadership, as Blair Shows, Takes More Than Deal-Making 

Tony Blair and his first 
five months in office let this now 
be said: He's no Bill CUnton. 

Youthful, telegenic and 
smart as two snakes, Mr. Blair 
was frequently labeled “Clin- 
tonesque” during Labour’s 
long campaign to oust the Con- 
servatives. His use of some of 
Mr. Clinton's, campaign tech- 
niques and political consultants 
fueled die comparison. 

But in office his bold, clear 
use of power has shown that the 
44-year-old Briton is made of 
different clay than the deal- 
maker from Arkansas, now 51. 

Elected in 1 992 at age 46, Mr. 
Clinton was portrayed as a gen- 
erational template in interna- 
tional politics. A man with no 
experience of the Great Depres- 
sion or World War II and lim- 
ited interest in die world of the 
Cold War, he was widely seen 
as a potential model for French, 
Argentine or Japanese. 

But Mr. Blair’s emergence 

By Jim Hoagland 

onto the world stage shows that 
the future is not necessarily Clin- 
tonesque. Individual character 
and specific conditions of power 
determine history more than do 
politicians’ dates of birth. 

Ibe most important specific 
condition of power in Mr. 
Blair's case is his overwhelm- 
ing majority in the House of 
Commons. He also can reason- 
ably expect a second teim, a 
luxury that Mr. Clinton did not 
enjoy until a few months before 

But Mr. Blair's boldness 
goes beyond his political con- 
dition. None of his actions 
shows that more clearly than the 
handshake he extended in Bel- 
fast last week to Gerry Adams, 
president of Sinn Fein, a man 
seen by many of Mr. Blair’s 
own officials and constituents 
as a bloodstained terrorist 

Protestant loyalists .booed 
Mr. Blair and yelled “Traitor!" 

But his explanation of why he 
has become the first British 
prime minis ter since 1921 to 
meet with an Irish republican 
leader was revealing: 

“We can continue with the 
hatred and the despair and die 
killing, treating people as if they 
were not parts of humanity, or 
we can tty and settle our dif- 
ferences by negotiation, by dis- 
cussion. by debate ... I treated 
Gerry Adams and the members 
of Sinn Fein in the same way 
that I treat any human being.’ ’ 

It is important to note that foe 
IRA cleared the way for the 
handshake and for Sinn Fein’s 
precedent-breaking participa- 
tion in peace talks on the future 
of Northern Ireland by declar- 
ingand observing a cease-fire. 

The cease-fire and the talks 
could come apart at any mo- 
ment Mr. Adams clearly does 
not control the IRA’s despic- 
able gunmen and bomb-plant- 

ers. The handshake commits 

him to no thing , an| i tells us little 

about him or the BRA. 

But it tells us something im- 
portant about Mr. Blair. He has 
entered into the talks as a truth- 
telling exercise. He has ac- 
knowledged, at initial political 
cost to himself, that foe IRA 
and Sinn Fein exist and have a 
say in whether there will be 
peace or continued civil war in 
Northern Ireland. 

Mr. Blair challenges the IRA 
to engage in its own truth- 
telling: to recognize that Bri- 
tain, weary of this conflict, 
wants to move more toward the 
role of honest broker but has 
political interests that most be 
recognized and protected in the 
struggle’s outcome. 

Mr. Blair has been aided in 
this by Mr. Clinton's talent for 
compromise and conciliation, 
for fuzzing up and then smooth- 
ing down hard edges. It was Mr. 
Clinton’s alternate cajoling of 
and caviling at Mr. Adams. 

when foe Conservatives in Lon- 
don pretended that he existed 
only as a terrorist mastermind, 
which kept Mr. Adams in play 
as a potential negotiator. 

But Mr. Blair is credible (in a 
way Mr. Clinton is not) when be 
warns the IRA that this is a 
“once-in-a-lifetime chance." If 
the IRA, or the Protestants for 
that matter, cross this discip- 
lined, determined British leader, 
they can expect swift and mean- 
ingful retribution and no future 
chances to spin him again. 

He sees politics in black and 
white, and challenges others to 
live up to his vision or reap foe 
consequences. At home and 
abroad, Mr. CUnton paints in 
the gray of deals and compro- 
mises that preserve his political 
viability for future deals. 

The same* slick campaign 
techniques will dominate in 
country after country in foe 
electronic era. But foe use of 
power remains personal. . 

The Washington Post. 

Markets Must Be Unguided? Tell That to Prospering Swedes 

W ARSAW — At a dinner 
here I found myself next 
to the finance director of a ma- 
jor Swedish corporation inter- 
ested in the vibrant Polish eco- 
nomy. To make conversation, 
I asked him why Sweden, with a 
population of less than 9 mil- 
lion, a country that was poor at 
the beginning of this century, 
has so many leading interna- 
tional corporations. 

These include the $35 billion 
global engineering group ABB, 
the leading machine tool maker 
Atlas Copco, the auto and 
aerospace manufacturer Saab, 
and such other familiar names as 
Electrolux, SKF, Ericsson and 
Volvo. How to explain this? 

My dinner companion 
offered two reasons. The first is 
that foe Social Democratic gov- 
ernments that ruled for decades 
practiced an industrial policy 
which pressed companies to 
combine or merge so as to pro- 
duce national “champions" to 
compete internationally. 

The second reason, he said, is 
that foe economic policies of 

By ’William Pfaff 

the Social Democrats since 
World War II produced high 
wages, resulting from national 
wage bargaining, as well as a 
fairly high level of continuing 
inflation. “That forced us to 
become extremely efficient and 

I was delighted with this con- 
founding of today’s conven- 
tional wisdom about state in- 
tervention, industrial policy, 
high wages and how to make 
companies competitive. 

This Swedish experience has 
also been a demonstration that 
industrial policy actually can 
work. No doubt it does not al- 
ways weak, and success depends 
very much upon a country’s 
economic culture and foe abil- 
ities of those in charge. But even 
Samuel Brittan of me Financial 
Times, an' eminent and implac- 
able defender of foe suzerainty 
of market forces, paid a‘recent,if 
grudging, tribute to foe role of 
state subsidies (“bribes," he 
called them) for infant indus- 

tries, and of pay guidelines, in 
Ireland’s spectacular growth 

since the mid-1960s. 

The United States itself 
provides the most convincing 
current example of successful 
industrial policy. It is called de- 
fense procurement. 

For a half-century, defense 
procurement has been an engine 
of American industrial .growth 
and the principal sponsor of 
high-technology research, de- 
velopment and production. It 
has been America's un&vowable 
Keynesianism, its secret social- 
ism. a state program of indus- 
trial intervention and subsidy. 

All of this emphasizes 
something which current eco- 
nomic theory tends to ignore: 
that capitalism is connected to 
the social and political order. 

In Sweden, foe prevailing or- 
der has been social democratic, 
with an emphasis on social wel- 
fare. In America during the Cold 
War, a different social order ex- 
isted, with other priorities. 

They Like to Hear Themselves Talk 

N EW YORK — No matter 
how Fidel Castro phrased 
his latest defiance of demo- 
cracy in his speech opening 
foe recent Cuban Communist 
Party Congress, he sent his 
real message in taking 6 hours 
and 43 minutes to say iL He 
so dominates the global verb- 
osity championships that his 
number should protably be 

But Mr. Castro is not foe 
only competitor. Heydar Ali- 
yev, Azerbaijan’s president, 
came to America this summer 
advertising Azerbaijan as 
home not only to petroleum 
but also to democracy. At one 
lunch he took 33 minutes to 
respond to a question, count- 
ing time for translation, thus 
undercutting his message. 

Most authoritarians are un- 
accustomed to the noisy pan- 
demonium of Western demo- 
cracy, which demands pith- 
iness from anyone wishing to 
be heard. Dictatorship, where 
reporters are stenographers 
and foe evening news is a 
leader’s personal pulpit, pro- 
duces foe reverse. 

The speaking styles of Mr. 
Castro and Mr. Aliyev, echoed 
by dictators everywhere, are 
evidence for foe theory that a 

By Tina Rosenberg, 

politician's commitment to 
democracy is inversely related 
to how long he talks. 

Once w hile interviewing 
General Wojciech Jamzelski 
in Poland, I asked a throwaway 
question to break the ice at foe 
beginning of my allotted hour. 
Twenty minutes later he was 
still answering it, and I was 
looking at my watch pointedly, 
furious at my own stupidity. 

The tendency to drone is 
widespread among autocrats, 
but it seems worse in former 
Communist officials than in 
the right-wing military dictat- 
ors of Latin America. Those 
generals did not achieve 
power by talking but by shoot- 
ing. They ruled simply be- 
cause they had more guns, and 
demanded of their citizens 
only silence. 

Communism, by contrast, 
was based on foe importance 
of an idea, and demanded that 
people sbow obeisance to it by 
marching in foe May. Day 
parades- and spouting slogans 
at party meetings. Cynical 
leaders used language as part 
of the police state’s coercion. 

Communism did not bother 

to persuade people of its or- 
thodoxies. Either you were a 
good citizen who bought foe 
line, or you were an enemy of 
the people. Speech simply 
signaled what font line was. 
Politicians were windy be- 
cause they believed that no cit- 
izen could have anything more 
im po r t a nt to do than listen. 

The real audience for a pub- 
lic statement was usually not 
foe public but foe boss. Tran- 
scripts of Soviet and Polish 
politburo meetings sbow the. 
members jockeying to flatter 
the top man. 

East Europeans who want 
to be seen by the West as 
congenial partners may need 
to learn not English but ef- 
ficiency in speech; which 
Westerners, often uncon- 
sciously, tend to identify with 
efficiency in other things. 

We take as modern foe per- 
son who converses and does 
not lecture, who tries to cap- 
ture the audience with an oc- 
casional wry r emark, who 
shows that everyone's rime 
matters. It is a custom that 
seems as hard for some lead- 
ers to leam as the idea that 
their citizens are entitled to 
think for themselves. 

The New York Times. 

Capitalism is not a machine 
which functions disinter- 
estedly, governed by the laws of 
die market In every country it 
reflects social and political pri- 
orities, even when these are un- 
stated! The priorities of each 
society are open to debate, but it 
is a falsification of reality to 
pretend that foe link to foe social 
andpolitical order is not there. 

The priority of America's 
new capitalism is on return on 
capital, as against the shared 
labor and commnmty “stake- 
holder" priorities of American 
business in the early postwar de- 
cades. This has been a deliberate 
choice. It could be reversed. 

Another problem of clarific- 
ation exists with respect to the 
international effects of global- 
ization. A Hong Kong reader 
recently wrote to foe Interna- 
tional Herald Tribune to de- 
mand ifl, as a critic of certain 
aspects of globalization, would 
want the people of such coun- 
tries as Taiwan to have re- 
mained poor, mired in primitive 
or ar tisanal manufactures. 

He implied that Taiwan, and 
foe other Asian “tigers,” have • 
grown rich because of global- 
ized free trade. Many people, 
including Bill Clinton, believe 
that Asia's experience in foe 
last two decades shows what 
globalism can do for foe coun- 
tries in Latin America (or 
Africa, or the Middle East) 
which today are still poor. 

This is wonderfully wrong. 
The Asian tigers (whatever their 
current fall from fiscal grace) 
grew rich thanks to protection- 
ism. They succeeded by export- 
ing to the open markets of North 
America and Europe, where 
governments believe in free 
trade, while resolutely defend- y 
mg their own markets and man" 
ufactures against exports and 
competition from the West. 

They learned to do this from 
Japan, where even now foe U.S. 
government wearily struggles 
to open markets to American 
consumer products and indus- 
trial goods, while foe Japanese 
put up an endlessly inventive 
resistance. (A few years ago foe 
reason for not importing foreign 
skis was that Japanese snow 
was “different.’') 

Mr. Clinton is promoting a 
free trade zone for all of foe A*, 
Americas, but the Latin Amer- V* 
leans would do better to look at 
Asia. The U.S. drive for free 
trade is frankly meant to open 
global markets to U.S. exports. 

Relatively few Latin Amer- 
ican manufacturers are in a po- 
sition to sell internationally 
competitive goods on foe U.S, 
market Their people are poor 
and willing to work for low 
wages. The relevant model for 
their growth is foe Asian model: 
export-led growth, conducted 
behind protectionist barriers. 

International Herald Tribune. 

© Los Angeles Tunes Syndicate 


1897: Pullman Dies 

CHICAGO — The death is an- 
nounced of Georae M. Pullman,, 
president of the Pullman Palace 
Car Company, who expired sud- 
denly from heart disease. George 
M. Pullman was the investor of 
foe modem luxurious parlor cars 
and comfortable sleeping cars so 
much used in America. It was he 
who undertook foe task of rais- 
ing foe . entire city of Chicago 
eight feet in order that a proper 
drainage system might be con- 
structed under the houses. 

1922: Premier Resigns 

LONDON — Premier Lloyd 
George has resigned. The Welsh 
schoolmaster's son, the country 
lawyer, foe baiter of dukes and 

who has rctie<Ffoe greatesrt Em- 
pire in -foe world's history, 
tendered foe seals of office to 
the Sovereign at Buckingham 
Palace. The British Premier’s 

decision to resign came as the j 
result of foe feteful meeting of V' 
Unionist members of Parlia- 
ment, when a resolution declar- 
ing foe independence of the 
Conservative party in foe com- 
ing general election was carried 
by 186 votes to 87, a sweeping 
majority thug renouncing foe 
leadership of foe Premier. 

1947: Iran Hunts Reds 

TABRIZ — The jittery Iranian 
government, fearful of a Soviet- 
inspired revolt in oil-rich 
Azerbaijan, is deporting for*. 

sands of suspected CoS. 

msts r Officials claim that the 

sitaation is so precarious that the 

strongest measures are mvW 
sary to safeguard the 
province from foe threat of Sr, 

viet annexation forouoh a / 

local pro-Russian “indent f 
capable of granti^^ 

Iranians seem reluctant to give 



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Alexandre TIC 

CtrU/it ISO 9001 



lor international manufacturing group with Central European 
operations and over $1 10 million in turnover. 

As a key member of die management team, the CFO Is 
responsible for the comprehensive financial functions of the 
group, induing consolidation and reporting, planning and 
budgets, treasury and banking relationships. The applicant 
should be a chartered accountant, CPA. or have simitar pro- 
fessional qualifications. Experience with a public company 
would be an asset Excellent English language communication 
skills are required for this- high-profile role. 

The ideal candidate is 15-45 years old, dynamic, flexible, and 
resuhs-oriented. Experience working in Central and Eastern 
Europe and/or knowledge of local languages is helpful but not 
essential. Competitive compensation package. 

Interested candidates should apply to 
Bax 33070, IHT, Friedrichstr 15, D-60 323 Frankfurt, Germany 


New York/Dallas/Londoii/Hong Kong 

With sales in excess of $20 billion, PepsiCo is one of the most successful 
companies in the world. For more than 30 years our sales, ongoing 
earnings and shareholder returns have grown on average 14% a year. 

This continued success, and our international expansion, has created 
several opportunities for ambitious candidates with a finance or IT 
background to join our international corporate audit team. PepsiCo 
Audit is a team environment that is best suited to highly adaptable 
individuals who can operate successfully in a fast-paced, results 
orientated environment. You will perform operational/lT reviews, 
examine the quality of management/TT systems, controls, and financial 
reporting, plus be involved in special projects related to our business 
initiatives. These are varied roles which require extensive travel, 
usually in teams of 3 or 4 to PepsiCo's international locations in 
Eastern and Western Europe, the Middle East, Africa, the United 
States, the Far East and Latin America. 

This is an invaluable opportunity to gain international experience in 
both our beverage and snack food businesses. We offer an attractive 
salary and benefits package. These positions lead to PepsiCo careers 
in either operations or our corporate centers. 

You will need: 

■ 2-6 years of experience in either finance or IT, trained in a “Top 6" 
firm of Chartered Accountants. 

■ Must be a graduate with continuing education in professional 

■ Fluency in English and at least one other language. 

■ Strong analytical and intellectual skills. 

■ Demonstrated ability to work as a team player. 

■ Well-developed communication skills. 

■ Ability to work in a multi-cultural and rapidly changing 

If you can meet this challenge, please write or fax to our advising 
consultant Jim Campbell at the IHT, 63 Long Acre, London WC2E 9 |H, 
quoting REF JP/PC. 

Fax: 44* 1 71 -242*5688 

PepaCo,[nc. is an equal opportunity employer 

Sec Wednesday's h tu m u r fa l 

for Badness Opportunities, 
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tod Enlm iMnrviMwsi , 

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Latin Americans 9 Message: Yankee Can Stay, but as Partner Softening the Debate 

By John F. Harris 
ana Anthony Faiola . 

• Washington Post Service 

Surrounded by cheering children in a 
schoolyard in Rio de Janeiro last week. 
President Bill Clinton was extolling the 
power of the Internet to tear down bor- 
ders and unite the Americas. 

On a crumbling tenement next door 
hung a banner with a less inviting mes- 
sage: "Go Back to USA!" 

That dissenting note echoed an era of 
widespread anti-U.S. sentiment that is 
receding rapidly in Sooth America. At 
the same time, Mr. Qin ton’s vision of a 
prospering hemisphere linked by good 
will and high-tech trade ‘ ‘from Alaska to 
Patagonia'' is an idea that, at least based 
on last week's evidence, remains some 
distance in the future. 

On aseven-day, six-stop tour of South 
America that ended Saturday night, Mr. 

Libya Lobbies 
Victims 5 Kin 
For Settlement 
On Lockerbie 

By Barbara Crossette 

New York Times Service 

Apparently encouraged by African and 
Asian support for its campaign to have 
UN sanctions lifted, Libya is lobbying 
the families of people killed in the ex- 
plosion of a Pan Am jet over Scotland in 
1988 in the hope of persuading them to 
settle the case, the mother of one victim 

Libya has been under limited sanc- 
tions forbidding international air traffic 
in or out of the North African country 
because it has refused to turn over for 
trial in Scotland two Libyan suspects in 
the destruction of the airliner. 

Susan Cohen, the mother of Theodora 
Cohen, who was 20 when Flight 103 
exploded over Lockerbie, said in an in- 
terview that families in the United States 
received a letter early this month from 
Libya's UN representative drawing at- 
tention to speeches made in support of 
his country in the General Assembly 
debate this fall 

The letter said that only the U.S. sec- 
retary of state. Madeleine Albright, and 
the British foreign secretary, Robin 
Cook, had objected in speeches to 
Libya's request to- have the sanctions 
lifted before the suspects are extradited. 

Colonel Moammar Gadhafi, the Liby- 
an leader, has made various offers over 
the years, most recently agreeing to have 
the two suspects tried under Scottish law 
and by Scottish judges — but not in 
Scotland. He has suggested a trial in a 
third country, or at the International Court 
of Justice in The Hague. Britain and the 
United States have rejected the offer. 

Libya has been accused of being be- 
hind not only the destruction of Pan Am 
Flight 103, which killed 270 people, but 
also the explosion that destroyed a 
French airliner over Niger in 1989, in 
which 17 1 people were killed. 

Mrs. Cohen, who lives in Cape May 
Courthouse, New Jersey, said families 
of the Lockerbie victims were divided 
about how to keep their campaign alive, 
with some relatives urging others to ac- 
cept compensation from the Libyans. 
She said a group of lawyers has been, 
asking American families to settle out of 

A similar offer is making some head- 
way in Britain, she said, as is backing for 
the Libyan proposal that a trial be held in 
a third country. 

"I am very worried about this,” Mrs. 
Cohen said. "I don’t want Gadhafi to get 
away with a payoff. My life has been 
destroyed by inis.” 

Some families have filed a civil suit 
hoping to settle with the Libyan gov- 
ernment. But Libya’s main purpose in 
lobbying the families is to get their 
agreement for a trial outside of Scotland, 
which would open the way to removing 
the sanctions. 

Recently, the Arab League and die 
Organization of African Unity adopted 
positions sympathetic to Libya. Many 
diplomats are convinced dial enthusiasm 
for continuing sanctions has been stead- 
ily waning. 

President Robert Mugabe of Zimb- 
abwe. chairman of the Organization of 
African Unity, told the General As- 
sembly that the settlement of the Lock- 
erbie case and the lifting of sanctions 
were of great concern to Africans. 

"In addition to the families of those 
who lost their lives, many other innocent 
third persons continue to suffer as a 
result of the sanctions imposed on 
Libya," he said. 

Clinton encountered a political culture 
in transition. The government leaders, 
business executives, students and jour- 
nalists Mr. Clinton met in Venezuela, 
Brazil and Argentina plainly did not 
want the Yankee to go home, but they 
did insist that he explain himself and 
redefine UJS. relationships. 

At every am, people wanted assur- 
ances dial the United States was not 
threatened by the increasingly powerful 
economies of the nations Mr. Clinton 
visited. They were alert to any possible 
slight And they made clear that South 
America was determined to approach its 
powerful northern neighbor on more 
equal terms. 

Mr. Clinton paid deference to die 
mood. He cooed over South America’s 
economic and political progress. He in- 
sisted that the united States was pleased 
by the emergence of the South American 
trading bloc known as Mercosur. 

And he spoke a new language for a 
visiting U.S. president While in the past, 
U.S. presidents have focused on aid and 
restructuring tee massive debt these na- 
tions owed, Mr. Clinton Last week kept 
repeating the word "partners,” and vir- 
tually every time be offered a criticism, 


such as of disparities of wealth in Sooth 
America, he took pains to emphasize 
that the United States was grappling with 
similar issues. 

Mr. Clinton was the first president in 
20 years not to come to Latin America 
during his first term of office, a fact that 
was widely interpreted in the region as 
betraying alack of Interest Bui the sheer 
repetition of his reassurances last week 
apparently helped put relations on more 
solid ground. 

Ibis improved atmosphere is, for the 

most part, substituting for. more tangible 
gains. The few policy advances on die 
trip included an agreement that will ac- 
celerate U.S. investment in the petro- 
leum industry in Venezuela, which re- 
cently has become a large source of U.S. 
imported oiL And Saturday, Mr. Clinton 
and President Carios Menem of /Ugen- 
tina formally announced a previously 
reported agreement on global warming. 

Despite the general mood ofbonbomie, 
Mr Clinton arid Hillar y Rodham Clinton, 
the first lady, did challenge Argentines in 
sane respects. Mrs. Clinton called for 
access to reproductive-bealih services, a 
provocative statement in a predominantly 
Catholic nation where contraception ana 
abortion remain controversial 

And Mr. Clinton pressed Mr. Menem 
on press freedom, a response to recent 
harassment of journalists, and endorsed 
the idea of a press ombudsman to monitor 
the issue throughout the hemisphere. 

in an interview with Argentine report- 
ers. Mr. Clinton spoke broadly about the 

Altalo DBaktaf/Reues 

ALMOST BIBLICAL — Youngsters in the Israeli desert city of Beersheba playing Sunday amid knee-deep hail 
stones. Flash floods after severe storms killed at least II in Israel and the West Bank and damaged crops. 

Roberto Goizueta, Who Rebuilt Coca-Cola, Dies 

ATLANTA (NYT)— Roberto C. Go- 
izueta, 65. a refugee from Cuba who 
became chairman and chief executive of 
Coca-Cola Co., its global dominance in 
soft drinks and braiding one of the 
greatest generators of shareholder 
wealth in corporate history, died early 
Saturday at Emory University Hospital 
in Atlanta. 

The cause was complications from 
treatment for lung cancer, tee company 
said. Mr. Goizueta. a heavy smoker, had 
a malignant tumor that was diagnosed in 
early September. 

Mr. Goizueta. who arrived in the 
United Stales in I960 with his wife, $40 

and 100 shares of Coca-Cola stock, rose 
from the company's technical and en- 
gineering division to become one of the 
legends of American business manage- 

When Mr. Goizueta took over. Coca- 
Cola was among the most conservat- 
ively managed companies in tee United 
States — and it was in trouble. 

Slow-footed and bureaucratic, tee 
company sometimes took months to 
make big decisions. Coke had no debt 
but its stock price had been eroding for 
years, losing half its value in a decide, 
and its feisty rival Pepsico was chipping 
away at Coke's domestic dominance. 

creasing volume and then spinning the 
bottling companies off to a subsidiary, 
Coca-Cola Enterprises, a public com- 
pany in which Coke retained a 49 per- 
cent interest. . . 

Mr. Goizueta is perhaps best known 
for revising Coke’s financial strategy, 
focusing more attention on shareholder 

JIANG: Beijing Leader Hope for a ‘New Level ’ in U.S. Ties 

Continued from Page I 

reasserting China’s sovereignty over 
Tibet and Taiwan, and declaring that 
China must limit the scope of direct 
democratic participation to ensure sta- 
bility and economic progress. 

“The theory of relativity worked out 
by Mr. Albert Einstein, which is in the 
domain of natural science, I believe can 
also be applied to the political field,” 
Mr. Jiang said. "Both democracy and 
human rights are relative concepts and 
not absolute and general.” 

These political issues could be po- 
tential flash points during Mr. Jiang’s 
trip, the first state visit to the United 
States by a Chinese president since 1985 
and his biggest test as Chinese Leader. 
Chinese and U.S. officials have warned 
Mr. Jiang that tee trip will be marked by 
human rights protests, particularly in- 
volving Tibet, and blunt questions of the 
sort that would cot be permitted in 

Nonetheless, Mr. Jiang hopes that his 
trip will smooth over the tensions of 
recent years and complete China’s eight- 
year effort to restore relations with die 
United States to what they had been 
before at least several hundred people 
were killed on the streets of Beijing in a 
bloody army crackdown on student-led 
demonstrations in 1989. 

“We have to seize this opportunity to 
promote understanding between our two 
countries,” Mr. Jiang said. “No maiter 
how telecommunications develop, they 
cannot replace face-to-face talks. They 
are very important for carrying out an 
exchange of feelings and sentiments.” 

Other Chinese officials made dear 
that Beijing’s expectations of the meet- 
ing were high. 

“Weexpecratot," saidChu Shulong, 

an expert on U.S. relations with the 
Chinese Institute of Contemporary and 
Internationa] Relations. “We want the 
leaders to enhance strategic understand- 
ing, talk about how they see the world 
today and into tee 21st century and how 
the two countries can work together to 
make a stable world. This is what we 
want tee most.” 

China’s apparent willingness to cut 
off cruise missile sales to Iran and to give 
assurances that it has stopped all support 
for nuclear programs in Iran and 
Pakistan — the latter a key to winning 
approval for American companies to seU 
nuclear-power generating equipment to 
China — are further indications of 
Beijing's ambitions for improved re- 
lations with Washington. 

Bote presidents have made private 
gestures recently as part of their gov- 
ernments’ efforts to assure a successful 
visit. This month, Mr. Jiang invited tee 

U.S. ambassador, James Sasser, and his 
wife for a private dinner at tee Chinese 
leadership compound, Zhongnanhai, an 
unprecedented gesture to a U.S. envoy. 

In another gesture aimed at blunting 
criticism over the widening U.S. trade 
deficit with China, Beijing is sending a 
delegation to the United States this week 
to make major purchases of American 
products. Aviation Supplies Cop., the. 
agency that imports planes, said dm 
China would buy 30 planes, valued at 
S1.7 billion, from Boeing Co. 

Mr. Jiang appears more dominant at 
borne than at any time since he assumed 
power in 1989, after die violent sup- 
pression of the Tiananmen Square pro- 
democracy protests. 

Mr. Jiang plans to begin his visit to the 
United States with a stop in Hawaii, 
where he will lay a wreath at a memorial 
for American soldiers killed in tee 1941 
Japanese attack on Pearl Harbor. 

CHINA: U.S. May Loosen Nuclear Ban 

Continued from Page I 

written commitments to restrict missile 
exports to Pakistan, and was penalized 
as a result. 

But they say that China has come a 
long way on restricting its export of 
nuclear materials and expertise, and that 
a deal can be struck teat would let Mr. 
Clinton cany out, for tee first time, a 
1985 agreement allowing U.S. compa- 
nies to sell nuclear reactors to China. 

Such an agreement, if it is reached, is 
expected to be the centerpiece of Mr. 
Jiang’s visit Mr. Jiang is to go to Wash- 
ington: Philadelphia; Cambridge, Mas- 
sachusetts; Los Angeles, and fonr other 
cities. At each stop he is expected to be 

met by hundreds of demonstrators 
protesting Chinese policies, especially 
on human rights. 

Administration officials say they are 
concentrating hardest on the nuclear is- 
sue before the summit meeting, hoping 
to allow Mr. Clinton to certify teat China 
is no longer helping any other nation 
develop nuclear weapons. That* would 
let the 1985 Peaceful Nuclear Cooper- 
ation agreement come into force and 
allow such American companies as 
Westinghouse and General Electric to 
sell nuclear power reactors to China . 

For the American companies, the. po- 
tential deals could have a value of $15 
billion through 2010, according to in- 
dustry advocates. 

mote a process of reorganization of toe 
world so n»r h uman beings are organized 
in a way that takes advantage of tee new 

Continued from Page 1 

And differences there are: France has 
vastly better public medicine than 
America, safer cities, higher minimum 
wages, less crime and more job security, 
particularly in its huge state sector. 

But it also has a 12.6 percent un- 
eoiDlovroent rate' teat is more than 

t °^^re^reoSasigns’ ofMfi-Anaer- S^S^American,much higher axes. 
icM^ra^Sp. ^Brasilia, a small a long-stagnant economy, crippling so- 

mUMwiils Anti in vmnSecapital and adebiftating^ixiety 

Mr. Clinton's motorcade. And in 
Buenos Aires, there was a riot teat led to 
150 arrests. 

For tee. most part, however, what 

venture capital and adebilitating anxiety 
about change that has held bade Us in- 
vestment in new technologies. 

Which sort of society do you prefer? 
That k tee essence of tee debate that has 

of spontaneous public response that he 

ofteohas on other trips abroad; his largest solidarity and so^lprc^ante^dbe 

crowd was a coupSof thousand people given up to ^feeve tee fes^^wtfa and 
in Caracas, which filled only a third of jbb^non ^ ^ UmtedStato? : 

tee square where he was speaking. • 

- ^ has tended to be argued m caricatural 

— . — ■ — : firms, i ncreas in g resentments between 

. T a the countries that have then compounded 

A I ilwlL KM A S real, if manageable, differences over teeir 

• ^ ro les in Africa, trap and elsewhere. 

A Baffling Conflict Here in France, the image of America 
JJ c5 J generally presented is in some ways an 

echo of what the Soviets once drew: one 
Continued from Page 1 ghettos, overcrowded 

civilians died on Aug. 28, specifically prisons, 19*-ceatuiy wages and gallop- 
identified their attackers as “Afghans," mg capitalist cruelty. It is not uncanmon 

shorthand for Islamic mujahidin, or holy 
warriors, who fought the Soviet occu- 
pation tf Afghanistan in the 1980s. 

But in interviews outside the hearing 
of journalists’ security escorts, two sur- 

to hear economists declare simply that 
the American system has failed. 

In tee United States, the French are 
almost uniformly presented as clinging 
stubbornly to archaic socialist ideals 

vivors of the Sidi Rais massacre were even as their unemployment rate climbs 
angry and befuddled that soldiers did not close to 13 percent and a wired world 
h fH their cries for help. "We shouted passes them by. It is not the merits of 
until our throats were dry," said one ranch public medicine that gain atten- 
woman before a malt* relative arrived tion, bot the silliness of French strikers. 

and ended die conversation. 

“The old Franco- American antago- 

Gvilians have bone the brunt of the nism, the almost genetic rivalry, has 
violence, whicherapted in 1992 after the been aggravated,” said Jean Baudril- 
goveznment canceled legislative elec- laid, a sociologist. ‘ 4 The idea of a French 

(tons. .... 

After tee government outlawed the 
Islamic Salvation Front, several armed 

exception, a French difference, is ab- 
surd, but a certain American triumphal- 
ism and our own relative decline has 

groups split off from it The best known turned tee idea into an obsession.” 
are the Tslamir Salvation Army and the • The new tone of Mr. Rohalyn, a 
Armed Mamir. Group, tee more violent former partner of tee Lazard Freres in- 

of the two. Its targets have included 
journalists, foreigners, artists, secular in- 
tellectuals — even schoolgirls who re- 

vestment firm in New York who took up 
his post last month, was clearly intended 
to get beyond these obsessions and the 

He promised to shake things up. With 
a plan developed b^ his chief financial 
officer and future heir apparent* M. 
Douglas Ives ter, Mr. Goizueta and Coke 
turned around the moribund bottler net- 
work by purchasing underperforming 
bottlers, replacing management, in- 

fused to wear tee Muslim headcover accompanying caricatures, 
known as the hejab. Spokesmen for the If Trance was troubled by Medicare 
Mamie Salv ation Army say tiie group cuts, and if it does not want globalization 
does not kill civilians and restricts at- to mean the relentless erosion of work- 
lacks to government or military targets, era’ rights, well, Mr. Rohalyn intimated, 
On the other sideof the conflict are tee these were themes with which the Clin- 
security forces and civilian militias, ton administration could sympathize. 

-:-**• «* 

- • 

called Patriot groups, that have ' been 
implicated in thousands of extrajudicial 

He spoke of the need for fairness in 
the distribution of wealth in a modem 

five years. 

.and disappearances in the last democracy, .the necessity of promoting 

social values," the problems of big 

In the last two years, tee character of cities and crime, and tee quest to ensure 
the violence has broadened to include “adequate retirement for our aging pop- 
large-scale massacres of civilians that in ulations.” In short, he seemed to make a 
recent months have reached Che outskirts limited defense of tee very welfare state 

of tee capitaL Most of the- kilting is 
centered on tee Metijda region, a fertile 
farming belt just south of Algiers where 

France is so determined to safeguard. 

"The American in me is very pleased 
with out economic performance." said 

•**; T* 

- *•>«■* 
_**«*## i 


orchards and crumbling French-ooloaiaL Mr. Rohatyn, who was bom in Vienna. 

villas are succumbing to an ugly sprawl 
of industry and cheaply built apartment 

While diplomats assume that the 
Armed'Islamic Group is behind most of 
the attacks, they say its motives remain a 
mystery. The Metijda region voted over- 
whelmingly for tee Islamic Salvation 
Front in 1991 elections and traditionally 

.“The European in me understands your 
ambivalence about some of tee choices 
that have been necessary to return to 
economic health.” 

The day after be spoke, Hubert 
Vedrine, tee French foreign minister, 
made remarks that were perhaps even 
more surprising. Talking to a group of 
foreign correspondents, he declared. 

has provided the militants with most of with disarming frankness: "We are a 
their manpower and logistical support country that has trouble facing up to the J 

TTtof hoc . IaW fA nndpcnfpQ ri rooTit\r tha m/vrl/4 n". 


■■ :: .= 

■V--. ' 

: -V* > 

- - i 

That has led to widespread specu- 
lation that hard-line elements of the se- 

reality of the world.” 

It was no good, Mr. Vedrine said, to 

curity faces have infiltra ted tee Armed have excessive pretensions, to wallow in 
Islamic Group and are encouraging its tee old, rankling talk about tee uni- 
members to. carry oht the ma ssacres to versality of French civilization and its 
deepen splits in the movement and to values; the notion of occupying a po- 
rule out any possibility of compromise sition close to the center of the world; tee 
between the government and the Islamic harkening after past glory. "There is,” 
Salvation Front. . he said, “something unhealthy in all 

That theory gained currency last that.” 
month when the Islamic Salvation Army What was needed instead was a new 

declared a cease-fire, fueling rumors of realism, be said. And realism led France 

secret negotiations between tee govern- 
ment of President Liamine Zerouaj, who 
is considered a relative moderate, and 
representatives of the. Islamic militants. 

Another theory is that tee Armed Is- 
lamic Group is targeting tee region to 
punish Islamic Salvation Front support- 
ers who have switched allegiances to the 

inexorably to the fact that there was only 
one superpower: the United States. To 
imagin e otherwise was only to invite tee 
fits of melancholy that have periodically 
overcome France in the last year. I 
This new tone on both sides appears 
closer to tee nuanced reality behind tee 
caricatures. For it is not, in fact, so much 

= * 

• • ^ , a 

tin . 

a \ 

government, which has provided some America that is forcing France to re- 
of the area s residents with weapons, consider its welfare state but the pres- 
Some analysis suggest that tee move- sure* ofa European integration of which 
ment also provides cover to those set- France is a chief architect 
tling personal scores and to mercenaries If France has freed capital move- 
engaged in land grabs and criminal ac- ments. sold off swathes ofstate industry, 

“’SSe pozzBn, is the appaxmdy pass- Hnbrac ? 1 and mad e a 

ive response of the security forces to 

puzzling is the apparently pass- strong franc a pillar of its policies, it is 
onse of the security forces to because tee opening of Eurooean bor- 

• - . - Decause tee opening of European bor- 

“VSI cases 4 havc v oc - def? and tee push for a single European 
cmred almost literally under their currency have required such changes. 

fo%idi Rfli* th. wii- B , ut 11 ^ easier to market these 

x e ™«^ t ™ K fe^° cc dweu ° n 

Similarly, ail thctaiV of the defense of 
°° " 3 French mo<te l of civilization” 
&£ntnst the American masks the fact that 

started, several hundred residents fled on 
foot' to the garrison, where (hey were 
given shelter in an adjacent villa, ac- 

BRITAIN: Pakistani Women Who Spurn Arranged Marriages Face Family Retribution 

Continued from Page 1 

want tee freedom that teeir friends and 
classmates have to continue their 
schooling, hold jobs and marry people of 
their own choosing. 

But these simple wishes are in direct 
conflict with teeir fathers’ notions of 
women's roles, filial discipline and clan 
honor — notions so strong teat families 
have commissioned searches by bounty 
hunters, kidnappings and forced one- 
way trips to Pakistan. 

In extreme cases, tee families have 
punished their daughters by beating 
them, throwing acid in teeir faces and 
burning them to death. 

“Up until a few years ago when cor- 
oners began getting suspicious, we bad a 
number of ‘suicides,’ where Asian girls 
who left home were said to have set 

themselves on fire,” said Philip 
Balmforte, the Bradford area commu- 
nity officer of the West Yorkshire Po- 
lice. "The families would all tell tee 
same story: She had been sad. she was so' 
depressed, we should have taken her to 
see a doctor." 

Mr. Balmforte showed a visitor pan of 
a 1992 television documentary record- 
ing a meeting between Tahar Mahmood, 
a bounty hunter from nearby Hudder- 
sfield. and the husband and father of a 
young woman be had been paid to find. 

“They arc so disgraceful, these wom- 
en,” Mr. Mahmood says on the film. 
The husband, an arranged partner from 
Pakistan, outlines the mission, saying: 
“We’U get her all right. We’U scar her, 
throw acid on her face, we’ll pour petrol 
on her and set her alight.” 

Among the many women who have 

sought Mr. Balmforth’s help was 
Tasleem Begum, a 20-year-old super- 
market worker in Bradford who refused 
tee Pakistani partner her family had se- 
lected. She was killed by her brother-in- 
law, Shabif Hussain, who drove his car 
onto tee sidewalk in a resi dential neigh- 
borhood and ran her over. • 

He escaped to Pakistan the same day 
on a flight from Manchester but returned 
to Britain a month later, was arrested and 
a year ago was convicted of murder and 
sentenced to life imprisonment. 

That is the only case that has. led to a 
conviction, and, according to Mr. 
Balmforte, a retired police inspector, tee 
police are usually unable to bring a pros- 

The women who are being pursued 
cannot identify who is coming after them 
until it is too late, families will never 

admit to hiring bounty hunters and die 
women who are forcibly taken to 
Pakistan, even if they are English-born, 
fall out of British jurisdiction once they 
are back in teeir parents’ native land. 

Mr. Balmforte said teat he had 742 
cases of Asian woman from the area who 
had left home and sought protection 
from teeir own families ana that the 
number was increasing each year. “I 
have girls in hiding across the country 
because the murders most certainly hap- 
pen," he said.. 

Piled up in his office were bags and 
suitcases with belongings for some of 
the young women he has placed in hos- 
tels run fay sympathetic Asian women 
across northern England and Scotland. 

Mr. Baimforth said it was policy to 
help tee women find safe lodging. Those 
families that do get in touch with him are 

given sneuer man adjacent villa, ac- tee French private sector showseverv 

m 3 magema °f embracing a nigg^SeS 4 
robe would not gwe her name. ’ 

porate raiders. 

— Intee same remarks teat poured scorn 

OTAmOTca’sairempt to legislate for the V 
Jospin outlined his own no- 

»■ ???? of , 4<anh ly well-being.” He talked 

WJmku of hjs plans to institute a35-hour work 

m Fia ? ce m P^e of the current 
week without a loss of salary. 
su £$ested, more jobs would be 

» \ ^ W0Uld 
J • %; ^fflong more people. 

I Such ideas naturally rnait Americans 
W '> - aw SJWD J ^‘wglxjaUoudOTdKpair. v 

Bni Mr. Jospin knows that witliaut • 

V 5 &. "> ^v.. lo won -*11 Kj™ 1 the French cannot < 

pkV hmcnon, and that a small dose of anti- 's 

flS£* M "f’^poa^tois a useful camouflage for K, 

v rr*f ^changes tear are inexorably bringing k 

f. closer u, the V 

— . *““ ■ ■ Rohatyn, and the Clinton admin- g 

^ r, ° n ' DOW se^equaUyawareofthe C? 

angry with this arrangement but in time, American ^ < l aest, oning !> 
be said, many realize he is tee only con- plicitly fiarterino 1 ^ un " * 

dull to a daugh te r a nd they will ask him to ' actually encourao^ if rench i $ 

take belongings and messages » her.. throuto3 0 J liU18e ' than | 


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% William Safi re 

WwnS fc'i'ig h 7'' h S 

whjiebreadese. "If we jL VS 

lileral and probably not in riat much of 
That is «*- 
not New Yorkers, define a split second 
as a New York minute.) 

In a taxi, making the light can be 
ratsed to the art form of cJSnEmi 
itig, a senes of turns made late St 
when there is little traffic and u S 

C3 H b, ^ an WOrk “■ wa > both »Z 
^ ‘ ow " without having 

?ifferemiations m 

terland,”^ which others call “die real 
America,” incredulous people say, 
„ You flipped your lid?” or ‘ 'You gone ■ 
JK2. Yorkers, who.once said. 

What are you, crazy or something?' ' 
now shorten that to, • Whaddva, 

A more subtle difference ran be 
found in how words are stressed in ■ 
phrases. Philip Scbeffler, a New York- 
er and executive editor of ”60 
Minutes” on CBS, wrote me about 
how he and the late Charles Knralt 
from North Carolina, emphasized 
words differently: “I ordered ‘APPLE 

Die.’ tO disJtnoilich it fmm ‘WPACU 

comes a couple few.) 

Kids on the streets of other cities 
play hopscotch. You toss an object— it 
used to be a skate key, before skates 
became keylessly in-line, on plastic 
rollers — into one square of an oblong 
figure marked into the asphalt and then 
hop fo it on one foot (The scotch has 
nothing to do with whisky or people' 
from Scotland; it is a variant of scratch, 
wtuch is how you mark the boxes.) 
Kids in New York, however, don't 
know from hopscotch. (When from is 
added to don’t know, it is a dialect 
emphasis for “what one means by.”) 

“I sat down for a while in a play- 
ground,” wrote Saul Bellow in his 1956 
“Seize the Day," . to watch the kids 
play potsy and skip rope." New York 
kids, like others in the Northeastern 
United States, play potsy. the word de- 
rived from a marble of baked clay that 
the Oxford English Dictionary notes is 
“a fragment of pottery {Hayed with in 
hopscotch” when you don’t have a 
skate key, which is now an antique. 

In what New Yorkers call “the hin- 

In New Yorkese, ‘two 
or three’ becomes 
‘a couple few.’ 

SAUCE.’ He dines on ’ham SAND- 
WICH’; l select a ’HAM sandwich.’ 
Should an out-of-towner ask us to tell 
him where the New York Knicks play 
roundball, I would direct him to 
’Madison SQUARE Garden.’ Kurah 
would send the visitor to ‘Madison 
Square GARDEN.’ ” 

These are shibboleths, a word rooted 
in die name of a pl a ce that was pro- 
nounced differently by Israelites and 
Ephraimhes, and was useful in reveal- 
ing spies. The Bible tells us that some 
42.000 Ephraimites were slain because 
they got it wropg; in those days, stress 
meant something. 

Do not confuse New Yorkese with 
Brooklynese, where some sounds are 
often transposed. The er-oy transpos- 
ition has long been noted: When the 
great Brooklyn Dodger pitcher Waite 
Hoyt was injured, fens said, “Hen's 
hoit (Usually, the schwa feels 

In the same way, the consonant r is 

dropped from some words and inserted 
into others; a reference to a girl named 
Brenda and her mother becomes 
B render's mudda. 

The letter d also gets taken from one 
place and set in another. The con- 
traction didn’t, in New Yorkese, be- 
comes the single-syllable dim. That 
’ lost d reappears as a substitute for t in 
the Vocabulary of disgusted dismissal, 
as fuggedabotuUt and gedoudahea. (“I 
dint do it, so gedoudahea. ” “Thanks.” 
"Fuggedaboadit.” ) - 

Whenever pure-dialect Brooklyn- 
ites take the subway to Manhattan, they 
'*ay they are gawna Noo Yawk, as if 
Brooklyn were not part of New York 
City. In all boroughs, however, there is 
a tendency to talk at times when people 
from other places would normally 
listen: this comrersus interrupts is not 
considered impolite, because it is an 
expression of interest. 

* Talking is a New Yorker's way of 
showing friendship, especially to 
strangers,” writes Deborah Taxmen. 
And Jim Crotty observes in his 1997 
“How to Talk American,” “New 
Yorkers show they are listening by 
interrupting what you are saying and 
commenting on it” 

I'd better explain the assertion above 
that “die schwa feels schwach.” In the 
science of language that calls itself lin- 
guistics, a schwa is a neutral vowel 
sound, its symbol an inverted e, pro- 
nounced uh and usually unstressed, as 
the a in ago or the / in easily. The 
Yiddish word schwach or shvach means 
“weak, listless, enervated, slightly 
nauseated” and in my opinion is the way 
the schwa sound must feel amid all the 
mere forceful vowels and consonants. 

As a Marylander transplanted from 
New York three decades ago, 1 suppose 
some of my former neighbors would 
take note of this off-the-wall obser- 
vation with, Whaddya. whaddya? but 
I’ll never know, they sprinted ahead to 
make the light. 

New York Times Service 

BIG TROUBLE: A Murder in a 
Small Western Town Sets Off a 
- Struggle for the Soul of America 

? By J. Aniht my Lukas. Illustrated. 879 
pages. SS2J0. Simon & Schuster. 
Reviewed by Richard Bernstein 

W HEN J. Anthony Lukas took his 
own life earlier this year, the talk 
of publishing and journalism was that he 
feared that the vast project to which he 
had devoted most of the last decade was 
not up to his own exacting standards. 

The project has now been published 
as “Big Trouble.” Lukas’s opulent, , lav- 
ishly detailed account of a minder trial in 
Idaho in 1906, an event that he believes 
incarnated the conflicted American soul 
at that time. The book has its flaws. 
Despite them, it is a magnificent piece of 
work, a stunning, monumental achieve- 
ment by a journalist and a writer of rare 
talent arid vision. 

L ukas ’s last book was "Common 
Ground.” a prize-winning study of three 
families caught up in the school de- 
segregation battles in Boston in the 
1970s. Most of the elements that gave 
“Common Ground” its breadth and its 
brilliance are present in the new book as 
>> well, most important his amazingly thor- 
' ouch research and his ability to forge a 

By Alan Truscott 

T HE Russian novelist Ivan 
Turgenev had an unusual 


lucid and compelling narrative out of 
what, in the hands of a lesser writer, 
might be an incoherent mass of data. 

“Common Ground,” to be sure, was 
a reporter's book, based largely on in- 
terviews that Lukas did with the families 
whose stories he told. “Big Trouble” is 
a historian's work, but like “Common 
Ground,” his scrupulously documented 
and lays out fpr readers a gorgeous, 
complex and instructive tapestry. 

The story begins with a murder in the 
booming city of Caldwell, Idaho, in . 
1905. The victim was Frank Steunenbeig, 
a sheep rancher, newspaper owner, local 
banker and former governor of Idaho. He 
was killedby a bomb setto go off when he 
opened the gate to his bouse. 

As Lukas convincingly interprets it, 
the murder quickly unleashed the central 
passions of the country at that time, 
especially those evoked by the strife 
between capital and labor in the intense 
and violent form taken in die West. 
Within hours of the murder, the police in 
Caldwell arrested one Harry Orchard 
and charged him with it Soon, Orchard, 
whose real name was Albert E, Horsley, 
was telling investigators a horrifying sto- 
ry of murder and mayhem that had been 
instigated by the leadership of die most 
powerful miners’ union, the Western 
Mining Federation, created during the 


use for playing cards. He 
wrote: "I w as once in prison, 
in solitary* confinement for 
more than a month. The room 
was small, the heat stifling. 
Twice a day I carried 104 
cards, two packs, one by one 
from one end of the room to 
the other. That made 208 
round trips, nearly two kdo- 
meiers! The day I didn t take 
my walk, all the blood went to 
my head!" 

Cards are regularly used in 
prisons in more orthodox 
wavs, and some American in- 
mates can enjoy. » type, 
game that has vanished in the 




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West ted the heart four. 

outside world: the men's 
pairs. Some of the biggest 
have long been played in the 
Federal penitentiary in Fort 
Leavenworth, Kansas. The 
diagramed deal, played there 
more than a quarter-century 
ago, is certainly a strong can-, 
didate for the best hand ever 
played in a prison. 

After a somewhat odd auc- 
tion, South played in four 
hearts and received a trump 
lead. This was ducked to the 
king and East shifted to his 
singleton club. West took two 
winners and played a third 
round, ruffed with dummy's 

South cashed the heart jack, 
ruffed a diamond, and drew 
the last trump to reach the 
ending shown at right- Read- 

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jm Broad v&noys 
M'Sothcic 1 ' 

28 Sprinted 

29 Dripping 

32 Town square 
3$ Genes* garden 

38 jazzy talk 

39 Nutty thought 

«2 Tennis great 

43 Humor 

44 Harbingers 

45 Physicist's 

4 iMensa 

members have 


47 — -fi (book 

48 Rockneo* Noire 

Solution to Puzzle of 


Bi Ones a year 
3* Set of 
58 Generosity 
si Beginners' 
skiing area _ 

63 Price 

84 Actor Estrada 
45 Uses a 

«6 Competed 

47 There are 435 in 

88 Sesames. e-Q- 
et Makes mistakes 

i Stem that works 
with a bow 
engineer or 

3 Month alter 


4 Feudal workers 

5 Layers 
4 Sir's 

t R eceded 
a Arcing shot 

e Peny White was 

is Company 
12 Legal memo 

Mil's made of 
piaster of par® 

19 Selective 

3t Post-op period 
as Sports venues 

37 Cosmopolitan 

28 Broad 

30 Uke left-hand 
page numbers 

31 Upton products 

3s Comedian 

33 Volcano output 

34 United — 

35 Kind ol Budfthlst 
37 Not too 

38 ‘Huckleberry 
Finn’ character 
40 Bands take them 
«i Performing 
is Annual 

Memorial Day 

48 Gends stroke 
48 Difficulties to be 
worked out 
bo Run off to the 

02 Chutzpah 

03 Pan Am rival, 

84 Daisyftke bloom 
os Yorkshire c«y 
■8 ‘Deutschland 


©New York Tbnes/Ediied by Will Shorts. 

57 Undiluted 
63 Scissors cut 



'mB 1 

l;. in.- Fmr-.-lV.-. 

Two Cobra militiamen pushing wheelbarrows loaded with looted goods past a cemetery in Brazzaville. 

A Ghost Capital in Congo 

‘Cobras’ Loot in Brazzaville’s Deserted Streets 

rambunctious late- 19th-century boom 
years in Idaho and Colorado. 

Orchard’s confession led to the arrest 
of tiie union’s three leading figures. Wil- 
liam (Big Bill) Haywood, George Pet- 
tibone and Charles Moyer, and their 
legally questionable extradition from 
Colorado to Idaho. The trial of the three 
men is the central element of a narrative 
that the author expands into a vivid 
panorama encompassing a huge number 
of events and figures. 

T jkas writes a history of Western 
mining and of the labor movement He 
chronicles the bloody confrontations be- 
tween unions and owners in the years 
before the Steunenberg murder. He re- 
counts the ideological struggles of a time 
in American history when socialism ter- 
rified many, even as it seemed to others 
die best bulwark against the savagery of 
capitalism. Lukas’s enormous dramatis 
personae include President Theodore 
Roosevelt the railroad magnate Edward 
Henry Harriman, the actress Ethel Bar- 
rymore and the lawyers Clarence Dar- 
row and William Borah. 

“Big Ttouble” is a big book, but it 
maintains an nnflagging pace right to the 
end; its central narrative about the 
struggle over die three accused labor 
leaders is utterly gripping. 

New York Times Service 

By James Rupert 

Washing ton Post Sen-ice 

BRAZZAVILLE, Congo Republic 
— After a four-month civil war that may 
now be over, Brazzaville is nor much of 
a city anymore. It is a ghost town 
haunted by the young militiamen who 
seized it Wednesday in the name of a 
former president of the Congo Repub- 
lic, Denis Sassou-Nguesso. 

A few days after the fighters, called 
Cobras, blasted out rival forces, hun- 
dreds of them rifled through the ruins of 
this city for some kind of war booty. 
Some were drunk on liquor and 
marijuana — and almost all on the con- 
viction that they bad won a great vic- 

The Cobras’ capture of Brazzaville, 
which came with support from Angola’s 
military, appears to have ended the rule 
of Pascal Lissouba, who succeeded 
General Sassou-Nguesso in 1992 as the 
Congo Republic’s first freely elected 
presidenL General Sassou-Nguesso has 
promised to form a broad-based tran- 
sitional government that he said would 
rule until elections, the date forwhich he 
did not specify. 

The civil war here followed by only 
six months an insurrection that brought 
President Laurent Kabila to power just 
across the Congo River in Kinshasa, the 
capital of the Democratic Republic of 
the Congo, the former Zaire. 

Like the fighting there, the conflict 
here reflected regional and ethnic cleav- 
ages. General Sassou-Nguesso is from 
the north of the Congo Republic, while 
Mr. Lissouba and his allies are from 
different tribes of the south. 

As foreign journalists toured Brazza- 
ville in a pickup truck. Cobras waved 
fists and automatic rifles and exulted in 
proclaiming the liquidation of rival mi- 

“The Ninjas, the Mambas, the Koy- 
Koy — they are all gone,” said one 
fighter. “Tell the world that the Cobras 
have captured Congo!” one man 

Central Brazzaville, once one of 
Africa’s more attractive and comfort- 
able capitals, is a shattered ruin. Apart- 

ment buildings and office towers stand 
scorched, their rooms open to the sky 
through smashed windows or shell 
holes blasted through their walls. 

In some neighborhoods, streets are 
littered ankle deep with the trash of a 
modem urban war. Concrete and glass 
shards of shattered buildings are mixed 
with the rocket tubes and shell casings 
that thousands of Congolese men and 
youths used to wreak the destruction. 

Much of the war’s human cost is 
obscured simply because the people are 
gone. In the Ounze District, 20 graves 
beside a main road are marked with 
crude crosses made of scrap wood. The 
dead had been buried there, a man said, 
because the fighting that killed them 
blocked their being taken to a cemetery. 
In other areas, bodies lay decomposing 
in the streets. 

In the looting, some fighters settled 
for small prizes. One man trundled a 
garlanded artificial Christinas tree on a 
cart, and another a wheelbarrow full of 
new store-wrapped toys, including a 
Monopoly game. But outside the former 
political school of the Congolese Com- 
munity Party, other men filled trucks 
with furniture, stereo speakers and 
framed pictures. On another street, a 
young man hauling a refrigerator hid his 
face from photographers. 

General Sassou-Nguesso was an army 
colonel in 1979 when he was handed 
power because of a political crisis in the 
governing Communist Party. 

He loosened controls on the economy 
but kept authoritarian rule until popular 
pressure forced him to give up single- 
party rule and permit free elections. In a 
1992 presidential campaign. General 
Sassou-Nguesso portrayed himself as a 
champion of consensus politics but was 
thrown out of power, winning only 17 
percent of the vote, as Mr. Lissouba 
became president. While pursuing 
power through elections, Congolese 
politicians kept their military options 
open by forming militias. 

This summer, with Mr. Lissouba’s 
term running out and presidential elec- 
tions scheduled, Mr. Lissouba sparked 
the war by trying to disarm General 
Sassou-Nguesso’ s Cobras. 


U.S. Envoy in Israel 
For New Peace Bid 

JERUSALEM— President Bill 
Clinton's special envoy to the 
Middle East. Dennis Ross, arrived 
in Israel on Sunday for another 
round of meetings with Israeli and 
Palestinian leaders in an effort to 
push the peace process forward. 

Mr. Ross was scheduled to meet 
with both Prime Minister Benjamin 
Neianyahu and the Palestinian 
leader, Yasser Arafau 

Mr. Netanyahu’s top aide, David 
Bar-Ban, said Israel would discuss 
with Mr. Ross an American request 
for a “time-out” in Israeli settle- 
ment activity and make arrange- 
ments for talks to be held in Wash- 
ington at the end of the month 
between Foreign Minister David 
Levy and Mahmoud Abbas. Mr. 
Arafet’s top deputy. (API 

Tajik Rebels Free 
Captured Soldiers 

DUSHANBE, Tajikistan — 
Aimed Islamic opposition units 
freed 80 government soldiers Sun- 
day. bolstering peace prospects in 
the former Soviet state. They were 
captured in four years of war. 

The 80 prisoners arrived in a 
convoy of trucks, escorted by Rus- 
sian peacekeepers deployed by the 
Commonwealth of Independent 

The prisoners were bearded and 
thin after their ordeal, and their 
clothes were shabby. (Reuters) 

For the Record 

Secretary of State Madeleine 
Albright, in a rushed trip to Haiti, 
lectured President Rene Preval and 
politicians to try to reach a com- 
promise and break the political im- 
passe that has paralyzed the gov- 
ernment and economy of the 
Caribbean nation. (LATl 

ing the position perfectly. 
South led his club queen and 
threw die spade jack from the 
dummy. East was now help- 
less: Whichever suit he dis- 
carded would provide South 
with his tenth trick. And that 
is as pretty a trump squeeze as 
you will 'see behind bars or in 
front of them. 

♦ AKJ 
V — 


‘Misinterpretations’ in South Africa 

By Suzanne Daley 

New York Times Service 

apartbeid-era official told South 
Africa’s Truth and Reconciliation Com- 
mission last week that thousands of 
cases of torture and murder under the 
National Party government were really 
a result of a misunderstanding — a 
semantics problem. 

The official, Adriaan Vlok, acknowl- 
edged that plans approved at cabinet- 
level meetings had called for political 
enemies to be “permanently removed 
from society,” “eliminated” and 
“neutralized” But he said that if se- 
curity officials had believed those were 
orders to maim or kill, they had mis- 

Mr. Vlok, a former minister of law 
and order and the highest-ranking 
former official to ask for amnesty, said 
cabinet officials had only meant to en- 
courage arrests and detentions. 

“Now, with the benefit of hind- 
sight,” Mr. Vlok said, “we can see that 
there wasn’t enough consideration giv- 
en about the us? of these words. We only 
realize now with shock and dismay that 
they gave rise to certain actions.” 

Mr. VIok’s testimony left panel 
members rolling their eyes and ex- 
changing looks of amazement 

The commissi oners seemed to take 
rums telling him that they found it hard to 
believe that cabinet officials had not 
known their orders were being “mis- 
interpreted” when so many people were 
dying in police custody or disappearing. 

“When a person pitched up dead, 
what did you do?” a commissioner 
asked. "What did you say?” 

Others pointed out that newspapers 
had reported on the deaths, and that 
most of the world had been aware of the 
torture going on at the hands of die 
security forces. 

After 22 months, and armed now with 
the testimony of thousands of victims 
and the amnesty applications of hun- 
dreds of police and army officers who. 
say they were only following orders, the 
Truth and Reconciliation Commission 
has begun to focus on the chain of 
command at the highest levels of the 
former government. 

So far, these hearings seem to be 
leadin g into a semantic fog. On the one 
hand the high-level witnesses say that 

the gruesome details of apartheid-era 
brutality were never foreseen or en- 
couraged by the top levels of the Na- 
tional Party government. On the other 
hand these officials are more than will- 
ing to admit that their orders could have 
been “misinterpreted” 

They appear to be trying to walk a fine 
line, leaving room for subordinates to 
apply for amnesty, but asserting that they 
themselves had no part in the brutality. 

Perhaps there was no better example 
than the testimony of two former army 
generals. One, Joep Joubeit, is applying 
for amnesty for his role in planning 
several assassinations. He testified that 
he had sought approval for his plan from 
another general, the bead of the defense 
forces, at a cocktail party. 

Later the same day, his superior. Janie 
Geldenhuis, said he would never have 
approved General Joubert's proposaL 
But he agreed that General Joubert had 

ken to him about a “very vague” 
plan. He said the other general might 
have been under the impression that he 
had been given approval 

had been given approval 
Mr. Vlok’s testimony this week was 
particularly disappointing for commis- 

sion officials because they had expected 
more. Mr. Vlok has asked for amnesty 
for his role in ordering several bomb- 
ings and has endorsed the panel’s 

Their frustration was clear. But Mr. 
Vlok, who repeatedly apologized for all 
that had happened and said be took re- 
sponsibility for it, insisted that from his 
vantage point as a minister he had been 
shielded from awareness of abuses. 

“.These things happened on the 
ground,” he said at one point. “How 
were we supposed to know? ft's as 
simple as that.” 

“In aU the reports that found them- 
selves to my desk,” he added, "there 
was not asingle case in which it was said 
we tortured a person before he gave us 
the information. So I could not know 
about it" 

Roelf Meyer, a former defense min- 
ister who has started a new nonracial 
party, said he had never heard any dis- 
cussions calling for illegal acts against 
political activists. So did Leon W esse Is. 
who was a member of the state security 
council, a body charged with making 
policy recommendations on security. 

Kenya Police Fire Tear Gas to Quell Protest 

The Associated Press 

NYAHURURU, Kenya — The po- 
lice fired bullets into the air, hurled tear- 
gas canisters and beat Kenyans with 
clubs Sunday in another violent crack- 
down on a pro-democracy rally. 

The police, who have broken up all 
but one anti-government protest, killed 
four protesters in this opposition strong- 
hold in July, when the protests began. 

The 5,000 demonstrators ignored or- 
ders to disperse. Within minntes, the 
police shot a dozen tear-gas canisters 
into the crowd assembled on an open 
field. Gunshots crackled through the 

Panicked demonstrators fled through 
the streets of this forming town, 150 
kilometers northwest of Kenya’s cap- 
ital, Nairobi. They were pursued by 
about 100 policemen, who beat strag- 
glers with clubs and whips. & 

Several demonstrators bled and 
moaned where they fell to the ground 

The National Convention Assembly 
had called the demonstration to demand 

the repeal of laws dating from British 
colonial rule that its says would give 
President Daniel arap Moi an edge in 
elections to be held this year. 

Mr. Moi, 74, has ruled Kenya for 19 
years and is seeking a fifth, five-year 
term. A date for the vote has not been 

Distr ict Officer Maurice Mbithe told 
the crowd the gathering was illegal be- 
fore he unleashed the police. 

"The police are stopping the meeting 
because they are afraid of us.” 
countered Professor Kivutha Kibwana, 
an assembly spokesman. 

The police have previously used vi- 
olence to break up all pro-reform rallies. 
More than a dozen people were killed in 
police crackdowns on pro-democracy 
rallies on July 7. including the four who 
died in Nyahuruni. 

Protesters called for a boycott of cel- 
ebrations Monday, a holiday in recog- 
nition of Kenya's first president, the late 
Jomo Kenya tta. and other independence 

PAGE 10 




Belgium Courts Foreign Investors With Issue That Anticipates theEuro * tJ f*j 

By Carl Gewirtz 

Imernaiionjl HerjU Tribune 

. PARIS — Investors wiU get a 
glimpse or how the capital market in 
euros will function once the European 
Union's common currency is up and 
running when Belgium this month mar- 
kets a 1 0-year benchmark issue at home 
Kid abroad. 

r The aim of the exercise is to draw 
foreign investors to Belgian paper. 

.. With a mere 5 percent of its debt held 
by nonresidents. Belgium is one of Lhe 
least exposed of all EU countries to 
outside investors. By contrast, nonres- 
ident holdings of German government 
debt are estimated at 38 percent of the 
total market. 

Because of its isolation. Belgium 
risks paying more to borrow money 
once the unified market is established. 
The size of its outstanding debt — at last 

count. L30 percent of gross domestic 
product and the largest of any of the 
countries preparing to adopt the single 
currency — means that Belgium will 
pay a greater credit-risk premium than, 
say, Germany or France. 

The yield on 10-year paper is 5.67 
percent in Germany and 5.69 percent in 
France, compared with 5.79 percent in 
Belgium. Reducing the differential in the 
unified market will in pan be a function 
of the attractiveness of the issuer. 

In no small port, the attraction is 
based on liquidity — the amount out- 
standing in a single issue. Investors pay 
a premium for liquid issues knowing 
that laige amounts can be bought or sola 
without affecting the price. 

Thus, Belgium intends to create its 
new 10-year benchmark by issuing si- 
multaneously in Belgian francs, French 
francs and Deutsche marks. The 
coupons will be identical, and the nom- 

inal amounts will all be redenominated 
in euros when the common currency is 
introduced in 1999. 

The aim is to build with future ac- 
cretions an overall issue of some 300 
billion Belgian francs ($8.25 billion J. 
The initial offering is expected to include 
5 billion French francs ($846 million) 
and 1.5 billion DM (S851 million). 

The French franc and DM bonds will 
be Listed in Belgium and subject to Bel- 
gian law but will be syndicated from 

different markets probably will become short-term rates driving 10 -yearGer- 
standard operating practice w ithin the . man yields to 6.5 percent by the end of 

1998. By contrast, Lehman Brothers 


The only risky 
issue is its timing. Investors fear that 
short-term European interest rates are 
headed higher and that U.S. rates may 
be raised soon. Such moves would un- 
nerve bond markets.. 

The extent of the uncertainty shows 
up in the differences between forecasts 
of where interest rates and exchange 

Moreover, this year's bond-market 
rally — which appears to have peaked at 
the start of this month — was driven by 


Paris and Frankfurt, respectively. The , rate will stand about a year from now. At 
aim is to induce French and German J.P. Morgan, analysts see a steady rise in 
institutional investors to buy Belgian 
government paper, and therefore the 
pricing may not be identical. As is usual 
in the Belgian market, nonresident in- 
vestors are exempt from the domestic 
withholding tax on interest payments. 

Executives at JJP. Morgan, which is 
coordinating the operation, say the 
method of simultaneous syndication in 

around current levels. . 

Goldman Sachs, which also forecasts 
a hefty rise in German rales, expects the 
dollar to fall to 1.60 DM by the end of 
next year, whereas Deutsche Bank, 
which expects only a modest rise in 
German yields, forecasts the dollar will 
be worth 1.90 DM by then. The dollar 
ended last week at 1.7619 DM. 

their holdings. 

Given the continuing light calendar 
of new issues in the international market 
and the wwiwMing preference for die 
relative safety of floating-rate paper, the 
final months of this year may be a period 
when institutional investors build up 

Most Active International Bonds 

The 250 most active international bonds traded 
t trough the Eurodear system tor the week end- 
ing Oct. 17. Prices suppfied by Tetekurs. 

Rnk Nome 

cpn Maturity Price YteW 

Austrian Schilling 

176 Austria 
225 Austria 

55* 07/1S/O7 99.4500 5.6600 
511 04/11/07 1008500 57300 

British Pound 

136 Fin Resla Hous 11.12609/30/50 144.5648 77000 
139 Abbey Noll TS 6 08/1 0/99 97.7500 6.1400 
160 BA Credit Cant 7Vi 10/15/04 100.1250 7.1200 

Canadian Dollar 

220 Canada 

TVi 0*01/07 77T8000 <5-5000 
TVi 12/01/03 110.9400 6.7600 

Danish Krone 

4 Denmark 


11/1507 1067000 


9 Denmark 


03/1506 112.7600 


16 Denmark 


11/15/00 1107000 


17 Denmark 


H/1Q/24 105.0500 


26 Denmark 


11/1501 1097200 


39 Denmark 


12/10/99 1017700 


40 Denmark 


12/15A4 1048300 


41 Denmark 


05/1503 111.0500 


43 Denmark 


IT/1502 1017000 


50 Denmark 


11/15/98 1044000 


72 Denmark 


02/15/99 1018500 


91 Nykredli 


10/01/29 963500 


101 Reaikredtt 


10/01/29 95.9500 




1Q/01/26 928500 


135 Denmark 


02/15/98 1007500 


137 Nykredli 


10/01/26 988500 


205 Byg Realkred 


10/01/29 958500 


Deutsche Mark 

l Germany 


07/04/07 1024867 


Rnk None 

93 Germany 

94 Treuhand 
98 Germany 

100 Treuhand 
106 Germany 
109 Germany 
115 Germany 
118 Germany 
129 Germany 

141 Treuhand 

142 Treuhand 

143 Germany 
145 Treuhand 
155 Germany SP 
15fl Treuhand 
158 Treuhand 
161 Germany 
167Westtd Hypobk 
168 Germany 

178 Germany 
181 Germany 
187 Germany 
193 Cap Credit Card 
195 Germany FRN 
201 Germany 
222 Germany 
224 Germany 
230 Germany SP 
250 Treuhand 

Cpa Maturity Price Yield Ride Name 





6 '4 


09/1*98 99.6400 
05/1 WM 7077500 
02/27/01 700-8900 
11/12/03 103.1980 
01/02/99 102-5700 

12/02/98 102.8900 
05/22/00 109.4800 
05/20/99 102.6200 
08/21/00 1 09.4700 
6Mi 01/20/98 100.7400 
1135 09/23/02 99.B400 
5%i 04/29/99 102.0000 
7 11/25/99 104.7700 
SVt 02/22/99 101.4100 
6U 07/29/99 103.0100 

zero 01/04/24 19.5000 

6’* 032*98 101.0200 
6>ft 06/25/98 101.4850 
574 0B/2W9B 101.4700 
5% 10/15/07 98.7000 
54* 09/20.06 953750 
514 10/20/98 101.1400 
5%l 0528/99 102.0200 
6-4 02/24/99 1034500 
54* 08/15/01 95.3399 
3.045 09/304)4 99.1700 
3485 1005/00 100.0000 
6 Vi 0220/98 100.8600 
7*i 0221/00 1064600 
6 0220/98 100.7575 
zero 07/04/07 574600 
56* 09/24/981014100 


































228 Fannie Mae 
236 Erdm Bk Japan 

Cpa Maturity Price YMd 

2 V* KVD9/07 100-5035 2.1100 
21* 07/2*4)51074250 24700 

Spanish Peseta 

166 Spain 5 01/31/01 911940 54900 

179 Spain 6*4 04/15/00 1018120 65000 

244 Spain 720 0228/02 1093910 73200 

246 Spain 735 KV31/07 1093310 64900 

Swedish Krona 

88 Sweden 
90 Sweden 1037 
125 Sweden 1036 
157 Sweden 
194 Sweden 
237 Sweden 

11 0121/99 106.9230 1 032900 
8- 0W1&O7 1124231 7.1400 
10W 05/tW» 1104336 93500 
5Vl 04/12/02 984130 54800 
1014 05/05/03 1194650 84800 
614 1 Q/254M 1014140 64100 

Waters Seem Placid, but Brace for a Storm 

Bridge /VfH'j 

NEW YORK — This week is not 
expected to produce much excitement 
on the bond market, with the August 
trade report scheduled for release 
Tuesday the closest thing to on exciting 
statistic that traders are likely to see. 

The market may show little change, 
bur its trend is likely to be lower as a 
growing number of hints points to an 
eventual interest-rale increase by the 
Federal Reserve Board. 

U.S. inflation reports' took center 
stage after the Fed's chairman, Alan 
Greenspan, indicated this month that 
price pressures remained a possibility 
unless U.S. growth slowed. 

Traders found a new reason to 
worry about the rate outlook when 
U.S. output data Friday showed the 
highest level in two-and-a-half years 

in factory use, a level that is expected 
to trouble Fed policymakers. 

The benchmark 30-year Treasury 
bond dosed with a yield of 6.44 per- 
. cent Friday, compared with 6.43. per- 
cent a week earlier. 

Given Mr. Greenspan's comments, 
and statistics showing that the econ- 


omy is still growing faster than wbat 
the Fed continues to be a sustainable 

nn ti inflati onary rate,' so me partic- 
ipants are starting to brace for a Fed 
rate increase as early as the central 
bank's Nov. 12 meeting. 

1 'The inevitability of i move grows 
with each passing day, it seems, said 
Josh Feinman, an economist at 
Bankas Trust. * ‘They’re just going to 

have to do something; die economy’s 
not slowing down on its own, and 
signs of strain are building." 

Hugh Whelan, a vice president at 
Aeltus Investment Management, also 
said the market ought to be juicing in a 
higher level of risk. 

Traders see this week as the calm 
before the storm. The storm could 
break out Oct 28. when the bond 
market gets third-quarter data on em- 
ployment costs, Mr. Greenspan is 
scheduled to testify before Congress 
again and the U.S. Treasury auctions 
offtwo-year notes, starting a series of 
issues totaling $65 biHion or more. 

The employment cost figure is one 
of two key numbers still to be released 
before the Fed’s Nov. 12 meeting; the 
other is the October employment re- 
port, due Nov. 7. 

U.S. Dollar 

2 Brazil 4 1ft 04/15/14 783603 44800 

7 Argentina par L 51ft 03/31/23 75.9389 73400 
10V* 05/15/27 1014654 9.9800 
HVft 05/1926 1233750 93200 
9* 09/19/27 10T3333 94300 
11% 01/30/17 1160046 93100 

Dutch Guilder 








, 5 Germany 
6 Germany 
8 Germany 
10 Germany 
21 Germany 
12 Germany 
24 BurtdnobEgalion 41ft 

7 l s 





6 ’. 
6' 7 
6' 7 


8 '« 






5 l l 



15 Germany 

18 Treuhand 

19 Germany 

20 Germany 

21 Germany 

22 Treuhand 

23 Germany 

24 Germany 

25 Germany 94 
28 Treuhand 
2ft Germany 
30 Treuhand 
32 Germany 

33 Germany 

34 Germany 

35 Germany 

44 Germany 

45 Treuhand 
45 Treuhand 
47 Germany 
JS Treuhand 
J4 Germany 
Si Germany 
53 Germany 

56 Germany 

57 Germany 
5S Germany 
5’ Germany 

;1 Germany SP 

t3 Germony 
a5 Germany 
u- Germany 
*0 Germany 
n Treuhond 
'3 TmuhanO 
"4 Germany 
T5 Trnuhand 
7 6 Germany 
"7 Ct-rmany 
50 Germany 
S? Germany 
S9 Germany 

07/04/27 104.0300 62500 
01/04/07 1028900 58300 
10/14/05 1083509 60000 
01/21/02 111.1900 7.1900 
09/17/99 993300 48300 
1 Q/20/00 111-2140 8.0900 
07/22/02 1158428 6.9100 
02/22/02 97.9340 44900 
04/26/06 1043450 60000 
12/02(02 1061291 69500 
05/12/05 109.9307 62500 
05/17/02 97.7050 48100 
01/0105 1093392 67500 
09/D9/D4 1113550 67300 
08/22/00 1028400 55900 
06/10/99 988000 38400 
01/04/24 998446 62600 
10/01/02 110.9487 69900 
03/19/99 99.2600 17800 
01/29/03 ! 08.2880 65800 
09/20/01 1128107 7.31 00 
08/204)1 113.0900 7.7400 
01/05/06 102.7300 58400 
05/1 S/OO 102.7000 52200 
06/20/16 100.7661 5.9500 
06/11.4)3 1072133 68100 
07/09/03 1061200 62400 
OV21.-01 100.1200 4.9900 
04234)3 105-5100 61600 
022001 110J767 78900 
10214)2 108.7700 6670Q 
11/20/01 98.9800 48000 
07,151)4 107.4750 62800 
03/15 DO 104.0400 62500 
07/15D3 105.6600 61500 
08700? 1002400 4.9800 
07D4.27 15.4500 64600 
127atw 11U275 7.9700 
09n5.D3 1032633 58000 
02,1606 1026750 58400 
1720.02 109.7912 64900 
01/13,00 104.9850 66700 
01.7301 111.9100 8.0400 
1211-98 992200 3-5300 
12-17.98 1008800 4.9600 
011499 1008900 4.9600 
09.1* 99 102.9308 65600 
0104 04 104J950 5.9800 
1111.04 111.9733 6.7000 
042203 1067700 63200 
n-7100 100.7480 5.0900 
052101 110.7500 7.5600 
077000 1098800 7.9600 
07.01.99 1038500 6 1900 

54 Netherlands 
68 Netherlands 
87 Neltrerignds 
99 Netherlands 
103 Netherlands 
105 Netherlands 
1 08 Netherlands 
111 Netherlands 
117 Netherlands 

127 Netherlands SP 

128 Netherlands 
147 Netherlands 

151 Netherlands 

152 Netherlands 

153 Netherlands 

154 Netherlands 
162 Netherlands 
165 Netherlands 

185 Netherlands 

186 Netherlands 
192 Netherlands 
204 Netherlands 
21? Netherlands 

21 5 Netherlands - 
221 Netherlands 
231 Netherlands 
234 Netherlands 
249 Netherlands 






02/1507 100.7700 
07/15/98 101.5000 
71ft 01/15/23 1178000 
6** 02/15/99 ! 02.9600 
06/15/02 1128500 
01/15/01 111.7500 
on 5/01 11 0-7000 
71ft 04/15/10 115.0000 
6*0 11/15.05 1078000 
zero 01/15/23 208000 
71ft 06/15/99 1 04/7000 
5ft. 09/15/02 102.1800 
01/15/04 102.0000 
04/15/03 1058000 
09/15/01 112.7500 




61ft 07/15/98 1018500 

03/15/99 103.4500 
02/15/03 1078500 
0615(05 109.0000 
01/15/06 102.7000 
03/01/05 1114500 
8>ft 0601/06 119.4500 
7*4 01/1500 1063000 
9 05/15/00 110.0000 
V* 1001/98 1028500 
7 05/15/99 1017500 
8’i 05/01(00 1091580 
71ft 11/15/99 1066000 
8>* (W15/07 119.2000 



















67 France OAT 


04/2W 978000 


131 FronceOAT 


04/2504 1027800 


191 France OAT 


04/2505 1117100 


200 Britain 


01/27/98 100.8750 


210 France OAT 


04/25/22 1 25.1 BOO .65900 



01/31/08 1007500 


Finnish Markka 

134 Finland 


04/1806 110.0474 


235 Finland 


01/15/99 107.9517 10.1900 

French Franc 

lI3Cybervaf FRN 
182 FronceOAT 
212 France OAT 
214 France OAT 
233 France B.T.F. 

1448 07.06.02 100.0200 14400 
5V: 0425/07 98.8200 55700 
5' ft 1 0.25.07 919600 58600 
S'? 047503 1158500 78800 
7>. (H25-06 111.1600 68200 
zero 1Z1107 988807 7.4700 

Italian Lira 

171 Holy 
223 Italy 

6 J . 0701,07 105.0400 64300 
&K 02.01.07 104.9800 64300 

Japanese Yen 

133 NTT 
203 World Bank 



07.2507 1038744 24200 
03/20-02 117.3750 44700 

13 Brazil 
27 Mexico 
31 Argentina 

36 Argentina . 

37 Argentina FRN W* <0/29/05 94.9107 78500 

38 Venezuela 9M 09/15/27 962500 94100 
42 Brazil L FRN 6V* 04/1506 93-5055 7.1500 
52 Brazil pars SU 04/15/24 758514 69200 
55 Venezuela par A 6*1 0101/20 878750 77300 
60 Brazil S.L FRN 6*i 04/15/12 861900 78300 

78 Mexico - 6M 12/31/19 834875 74600 

79 Venezuela FRN 64t 12/18/07 95.0700 7.1000 

81 Russia 10 0426/07 1061809 94200 

83 Brazil FRN 6V<t 01/01/01 997000 68700 

84 Bulgaria FRN 6V* (ff/28/ll 817500 87300 

85 Mexico FRN 6U 12/31/19 834875 74600 

86 Brazil SJ. FRN 6*x 04/1909 904200 74600 

95 Ecuador par 316 02/28/25 568750 61500 

96 Italy 69k 09/27/23 994250 69000 

97 Argentina FRN 69k 03/31/23 90.6563 74800 

02 Ecuador FRN 3! 4 02/28/15 74.7008 47500 
04 Ptat Com. FRN 5.92 09/1406 100.0000 57200 
07 Brazil 6 09/15/13 834250 7.1700 

10 CADES zero 07/10/98 957332 68800 

12 Brazil S.Z1 FRN SVn 0415/24 888300 74300 

14 Mexico A FRN 6693 12/31/19 961250 69600 

20 Poland FRN 6% NVZ7/24 1018968 68100 

21 Bulgaria FRN 6V* 07/28/24 84.0625 7.9600 

22 Mexico D FRN 12/28/19 960916 78900 

23 Canada 61ft 07/1 SW2 998123 61400 

24 Ecuador FRN «>Vw 02/28/25 82440Q 8.1100 

26 Mexico 11*6 09/1 VI 6 120-3750 94500 

30 Mexico B FRN 6836 12/31/19 994565 68700 
38 Argentina 8% 12/2QD3 1007161 87500 
44IADB 6*6 03/07/07 99.6577 64500 

46 Argentina FRN 5898 12/28/99 374500154600 

48 Plat Com. FRN . zero 09/1402 1008022 08000 

49 Mexico 9Vn 01/15/07 108.1 250 9.1300 

50Un BKNarwfm 51* 10/1499 998700 5.7500 
59 Peru Pdl 4 43/07/17 69.7944 57300 

63 Russia 9U 11/27/01 1047394 88500 

64 Mexico C FRN 682 12/31/19 967008 78900 

69 Bulgaria 216 07/28/12 664375 37900 

70 Brazil 8*6 11/05/01 1044250 84800 

72 Fst Chicago ftn 5.819 09/23/02 998800 58300 
75 Com mere FRN 5594 01/29/01 994000 54200 
77 Canada 5V4 01/30/01 100.7446 54600 

80 panama 0*k 09/3Q/27 100.0000 88800 

83 Venezuela par B 6*» 0431/20 867500 77800 

84 Mexico par A 6'A 12/31/19 83.6875 74700 
tun 06/11/071027750 68?00 
646 09/09/07 B7.7822 74200 
zero 12/23/97 99.0212 57400 
614 12/31/19 834875 74700 
6*4 08/28/06 1027500 64000 
3U 03/07/17 62-8291 5.1700 
5Vft 02/10/99 998900 55100 
4*6 1Q/IVD2 1024116 47600 
6*4 07/03(071017500 64700 
6*4 07/22/02 99.7859 62600 
Ti 05/1506 997913 77900 
8*4 1007/16 998750 8.7600 
5<ft 1004/01 100.1486 54900 

216 Brazil Cbond S.L 41ft 04/15/14 974252 4.6100 
21 9 Panama FRN 4 07/17/16 888000 45500 

226 Mosenergo Rn 84ft 10/09/02 98.7500 84800 

227 Argentina FRN 5456 04/01/01 1135572 4.9800 
229 Brazil S.L FRN 6*1 04/15/12 867138 78300 

11 10/09/06 1131ft 94900 

9*6 10/15(02 100.1892 97600 
71ft 10/18/06 994250 7.1500 
6469 12/31/99 99.9500 64700 
61ft 05/30/00 1017500 64200 
10 09/19/07 1044833 95500 
6U 11/15/20 757500 87100 
3*4 07/T7/14 797500 4.7300 
6 02/21/06 965941 67100 

89Mydfa FRN 
.96 Mexico par B 

97 Canada 

98 Peru 

202 Canada FRN 
20B Toyota Motor 
209 Korea Dev Bk 
213 Philippines Fix 
216 Brliain FRN 

238 Argentina 

239 Pera Fin Svc 

240 Pcholiam Nasi 


242 Canada 

243 Turkey 
245 Nigeria 

247 Panama 

248 Ontario 

The Week Ahead: World Economic Calendar. Oct. 20-24 

•* -• -• rt,r. B..V* s fliVrvrr ; jrW fcunAH tner's. famn to* ffu riUrrjt.crj ' H&ad thj ^ cj rv B-jjntv? Basness News 


Expected Hong Kong: Anhui Conch Cement 
This Week Co. to begin trading on the Hong 
Kong stock exchange. 

Earnings expected this week: Ben- 
gal gaon Refinery & Petrochemicals 
Ltd.. Advani-Oertikon Ltd., Bajaj Au- 
to Ltd. 


Sofia: Bulgarian government holds 
international conference on invest- 


Foz do Iguacu, Brazil: Brazil’s 
Parana state utility holds Interna- 
tional Conference for Electrical Sec- 
tor Executives. 

Earnings expected this week: 
Hilton Hotels Corp., Lockheed Mar- 
tin Coip., Nabisco Holdings Corp., 
Salomon Inc. 

1 1 

- • 

■ ■ 

_ ■ ■ 

i New mvernavionai nona issues 

[ Compiled by Laurence Desvilettes 


\ Issuer 




Coup. - 
% Price 





1 Floating Rate Notes 

Bank of Nova Scotia 



Hbor 99.971 


Intent will te.lfie 3^nonm Libor. Moncatabta. Fws 0.1875%. DwiomlnolIonB si 0006 
(Bardays rte Zoftto WsddJ 

BG Bank 





”* " 

1 nterestwBIte 040 over 3-month Lftwranfll 2002, wtentesu* I# ca Boble at pat tftweottel 50 
over, FMs 080%. Denorataatiotn SKXDOO. IXP. Morgan SacurfflnJ 

Corestates Bank 






OnrS-rmfltti Libor. NoncatiaMe. Foea 030%. DmmfnaHots $1(1000. CLP. Morgan 








Bataw iraonth Libor. Nonoolable. Fees not dtedoied. Denamlnalteta SUXVOOO. (Letinan 
Brattten InHJ 

Evergreen Funcflng 






Over 6monNi LKrar. Average Dfe 61 years. Abo S38 mfltion paring 1M over Uboc Fees not 
avaOaUe. DerwrntaaBoneSJMWOO. (Satamon B ratten Inti) 

Royal Bank of Canada 






Intent wBlbeme3-nwntti Ubor. NonuJutile. Fen 030%. tMorgan Stanley Inti) 

Suncorp Melway 

. $350 




■ — 

Over 3-monBi Ubor. NoncaUaMe. Fen 0.178%. CDeubche Maryan GranMD 

Triangle Funding 



IBmt 100.00 

Intent wn oe Itieannorth Libor. AtaoS4&75 million due 3001 and paying ailover LflncSlS 
mBian due 2001 and paying 0J8 over Ubor nod SI 675mHon due 2001, to be priadOd 22. 

Fees not dMosed. Denorntaatiora S10000& (CS Ftef BostonJ 

Triangle Funding 





Over 3^nordh Ubor. Averngo IHte 3 yean. AM £35 mOton paytng 053 aver Ubor end 145 mUon, 
ta be priced Oct 22. Fees not dtednad. DenoninatiorB SltKUXtt. tCS Ftat BntorO 

Triangle Funding 






Over 3-manihLteor. Average Ute 5 yean. Am *1841 mHan paying 0.1 9 over Ubo& $30 mBNan 
paying 088 owrLBjor and S30mBtotk to be priced OcL 22. Res not dUdpsed. Denominations 

sioaqoa (CSArtBostev) 

Aire Volley Finance 





Over 3-<nantti Ubor. Caloble a) parln 2Qp4> whin ODUpan may bo mot. Fees not maHsUe. 
Denomtaatiam Cl OlftOOO. (NotWest Capital MarktisJ 

Aire Valley Finance 





OverS-manfli Ufcor. CaBaWe at par h 200a men coupon may be reset. Also £M mflffon poyinfl 
022 over LBmo £288 ndlBan paying 0JS aver Libor arid £258 in Won paying 060 over Ltaor. 

Fees oat available. Deoanrinotfoos £100000. (NatWest Capital MatMsJ 

Asset Backed Capital 






Below 3-rnantti Libor. Reoftaed at par. NonaaflObie. Fees 025%. 07. Morgan ScanflfnJ 

European Investment Bank 






Intent wfll be 085 overd-montii Ubor un» 1999, thereafter a Used 5VM6 Reoftered at 99Jtt 
NoncallaMe. Issw may be redenamtaatad ta euros alter EMU, In wMct) one II wffl become 
fongtate wtm ovttlmufliig tesue. Fen i *«%. fCredlto notiatraj 

European investment Bank 






Below Jraontti Afhbor. Roaftered ot par. NoncatioUe. Fen 080*6 (ABN-AMRO Hoare 


Dao Heng Bank 






Over 1 -month Lfljor. Noncaflabie. private ptoewnaat. Fees not disclosed. (HSBC Marketed 


African Development Bank 






NorxrilcbJe. Fees 0J5%. Denamtnaflans SiaOOa (Lehman BrcttWJi InHJ 

Banque Nolens 






Noncollabte. Fees 0.1 875K> (OresdnerKleinwDttBensanJ 

Bayerisctie Hypoffieken und 
Wechsel Bank 



4ft i 



Reoffered at 9737 . NonaiMite. Fen 1 Writ. (ComroerzhankJ 

European Investment Bank 






Nonadtabie. Fees 025%. Denomtapflons JUWOa {ABN-AMRO HoaieGovett) 

European Investment Bank 






Coltabto at par ftwn 1998. Fen 2% (Barclays do Zoefc WeddJ 







Reoflerad at 99286 NaacaBabta. Fen Iteflft. (ABN— AMRO HaaieGovriU 


Development Bank 

si ,000 





Semianiwally. Noncafable, Fen 0825%. (Merrill Lyndi InTU 







SemiannuoBy. Catebta of parftom 2002. Fen 2W% (Morvan Stanley DetmWWer.) 

New South Wales Treasury 


1999 5.9525 100.00 


Banco National de 







Reo^red id 1 0016 CnBabte ot par ta 2007. Feu 3W% (CS FW BostmJ 






Nmalltele. Fanglble wllti outstanding issue, robing total amount (o 18 
bBao mortis. Fen 2M6 (Deutsche Morgan GranfeflJ 

Credit Communal da 







month Plbar. Fen 0825%. Penomtaattom 106000 francs. CLP. Morgan SeanfltesJ 

Deutsche Ausgleichsbank 






Rntteed 099 . 904 . NancoftaUe. Fen 2% Denomtatefans T0O000 francs. (Catesedes Depots 
ef GonstynaflpnsJ 

Shudured Offerings 






NoneBfttale. Fen 025% Demataattons 100000 francs. (Merria Lynch IrtfU 

BGB. Finance Ireland 





I* Moi «• 12-month Ubor. 

NongMrto. Fungible wttti autstandtag ham raising total amount to 300 bffion Kra. Rks 2% 


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Monday Bangkok: Export-Import Bank of 
Oct. 20 Thailand signs loan contract with for- 
eign financing sources to borrow 
S5O0 million to help out exporters. 
Tokyo: Bank of Japan releases 
wholesale price index and merchan- 
dise trade figures. 

Stockholm: Central bank releases 
Da lance-of -payments data. 

Vienna: Central Statistics Office re- 
leases September consumer prices. 

Mexico City: Statistical institute re- 
leases retail and wholesale figures 
for August. 

Ottawa: Statistics Canada releases 
August wholesale-trade figures. 
Earnings expected: AT&T Corp.. 
IBM Corp., Microsoft Corp. 

Sodete Nationals des 
Chmins de Fer Francois 


Westdeutsche Landesbank ITL400000 2000 51a 101.185 9945 

European Investment Bank DK400 
Fannie Mae NZ5450 

NootBHobie. Fm 1 W4. (Bona Nazlanale dd LimnaJ 

2002 51ft 101796 9950 ^ ^ ^ ^ 

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Tuesday Efombay: Reserve Bank of India an- 
OcL 21 nounces monetary policy for the 
next six months. 

Sydney: Quarterly price index of ma- 
terials used in manufacturing indus- 

Madrid: National Statistics Institute 
releases August industrial price in- 

Stockholm: Central bank releases 
current-account statistics and sets 
securities repurchase rate. 

Ottawa: August merchandise trade 
balance and July retail sales. 
Washington: American Petroleum 
Institute's weekly report on U.S. 
petroleum stocks, production, im- 
ports and refinery utilization. 


Credit Suisse First Boston 

Winbond Electronics 


SBC Jersey 

DM200 2002 116 97V6 

Wednesday Sydney: Third-quarter inflation fig- 
OcL22 ures. 

Bombay: Reserve Bank of India 
holds 364-day Treasury bill auction. 
Earnings expected: Orchid Chem- 
icals & Pharmaceuticals Ltd.. Inger- 
sofl-Rand (India) Ud. 

Budapest: National Bank of Hun- 
gary releases current-account fig- 
ures for August. 

London: Office of National Statis- 
tics releases retail-sales figures for 

Washjngton: Mortgage Bankers As- 
sociation of America's weekly report 

Earnings axpSed: AfliedSignal Lost Week's Markets Euromarts 

Inc., Chevron Corp., DuPont Co., — — 

Mobil Corp., Phillips Petroleum Co., Stock ,ndexes Money Rates 

Procter & Gamble Co. 

Eurobond Yields 

United States Oct. 17 
□J Indus. 7447JD3 

Thursday Hon 9 K°ng: China Telecom (Hong 
OcL 23 Kong) Ltd. lists shares on the Hong 
Kong stock exchange. 

Tokyo: Economic Planning Agency 
releases diffusion index for August 

Basel: Novartis AG releases sales 

Helsinki: Statistics Finland releases 
September unemployment figures. 

Washington: Labor Department re- 
ports initial weekly state unemploy- 
ment compensation insurance 
claims. . 

Earnings expected: Bankers Trust 
New York Corp., Dow Chemical 
Co., MCI Communications Corp. 

DJ Util. 


SIP 100 
H aad aqCfl 

bill'd 225 1747842 1777692 *058 








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— 6\5 

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Ftaterol funds rate 

CXI 17 OCL 10 
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OtLTT OallTHm Yrio* 



OcL 24 

Tokyo: Ministry of International 
Trade and Industry releases Figures 
on crude oil imports in September. 
Earnings expected; Semi-Tech 
(Global) Ltd. 

London: Office of National Statis- . 
tics releases harmonized index of 
consumer prices for September. 
Stockholm: September trade-bal- 
ance figures. 

Washington: Weekly Federal Re- 
serve report on commercial and in- 
dustrial loans. 

Earnings expected: Applied Inno- 
vation Inc., Dole Food Co., LTV 
Corp., Newport News Shipbuilding 
Inc., Weirton Steel Corp. 

HUnoo 5771 422770 +084 


TSE Indus. 7,03270 7,11040 -189 

CAC 40 295882 +0.10 


SSX 4JJ6I80 4,18852 -103 

Hong Kong 

Hong 5800 1380181 16273.12 -471 


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CaH money 

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576 581 
588 570 

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587 578 
637 STS 
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140 142 

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HREsi®**- 5 


PAGE 11 

Thailand’s Finance Minister Plans to Resign, Endangering Bailout 

■ ®y Thomas Crarapton 

JfVrtol ft i the Herald Tribune 

BANGKOK — Finance Minister 
Thanong Bidaya said Sunday he wodd 

tnov" i as “ unm “ent cabinet 
shuffle lookplace. tn a move that could 
jeopardize Thailand’s m^muESZ 
of a massive financial restructuring. 

Separately, Sanoh Thien thong, the 
mtenor minister, said thar.all 48 min- 
isiers in Thailand's cabinet would sub- 
mit undated letters of resignation to the 
prime minister within two days in preo- 
aranon for a restructuring that would 
take place “soon.” 

Mr Thanong’s announcement came 
after the pome minister, Chaovalit Yonc- 
chaiyut canceled a three-day-old tax on 

gasoline Friday that had angered voters 
oat that the finance minister considered 
necessary for economic austerity. 

To achieve investor confidence, the 
Timi government must show it has unity 
and policy continuity,” Mr. Thanong 
said. He said he thought he should be 
replaced by someone more senior. 

Mr. Thanong has been in office only 
four months and is the country’s third 
finance minister in a year. 

Analysts said Mr. Tbaniong’s planned 
resignation would deeply affect the stock 
and currency markets Monday. 

“Monday will be a black day for 
Thailand,” Barry Yates, head of region- 
al research at Seamico Securities, said. 
“The baht will be left in taxters because 
Thanong was seen as giving solid back- 

ing to necessary economic reforms.” 

Suffering man a deep economic 
crisis, Thailand’s currency has fallen 40 
sent since it was floated in July, 
down other currencies iu the 
region in its wake. 

In August, T hailan d agreed to a $172 
billion economic-rescue package or- 
ganized by the International Monetary 
Fund, but confused economic manage- 
ment has constantly undermined efforts 
to stabilize the economic situation. 

In announcing a key set of World 
Bank-endorsed reforms last week, Vira- 
bongsa Ramangkura, the deputy prime 
minister, said, “If there is any doubt 
about political Interference, this whole 
thing will fail.” In addition to further 
hurting the currency and stocks, the 

political uncertainty could push compa- 
nies into bankruptcy as foreign lenders 
dosed credit lines to country's private 
sector, analysts said. 

Thai companies have about $73 bil- 
lion in foreign debt Half of the debt is in 
short-term loans, $1 8 billion of which is 
scheduled to come due in the next three 

Central bank officials have said thata 
failure to restore international credib- 
ility would force the country to ask for 
assistance beyond the- $17.2 billion 
package already in place. 

“It has simply been impossible to tell 
who is in charge here,” a Western dip- 
lomat said. “The six parties in the co- 
alition all tell their version of events, 
then you’ve got the central bank gov- 

ernor and all the prime minister’s ad- 
visors.” Several analysts said drey ex- 
pected the Bank of Thailand’s governor. 
Chaiyawat Wibulswasdi. to quit- soon 
after Mr. Thanong’s resignation became 

Mr. Thanong is an nndectcd cabinet 
member who wasplucked from his post 
as president of Thai Military Bank to 
help restore the government's interna- 
tional credibility. ■ 

A fluent speaker of Japanese, Mr. 
Thanong has been credited with easing 
negotiations in Tokyo to persuade Jap- 
anese banks ro keep open lines of credit 
to Thai corporate debtors. 

Since talcing office in June, Mr. Than- 
ong has threatened to resign several 
times because of political interference. 

He delayed spending-cut and tax-in- 
crease proposals for three weeks amid 
opposition from some politicians. After 
the second delay, he said he would 
resign “if someone better could do the 
job.” Mr. Thanong’s departure amid the 
furor over the tax increase bore a strong 
resemblance to the resignation of Ms 
predecessor, Amnuay Viravan. A tech- 
nocrat picked to lead an economic team 
soon after the government was elected, 
Mr. Amnuay resigned in June amid 
dash es over the imposition of taxes on 
marble, batteries and motorcycles. 

A strong candidate to replace Mr. 
Thanong is the deputy prime minister, 
Kona Dhabaransi, who last week was 
given power by the prime minister to 
“supervise” economic affaire. 

The Big 4? 
Firms Flirt 

And Then There Were Four 

The proposed combination of KPMG and Ernst & Young would vault 
ahead of the pending merger of Coopers & Lybrand and Price Waterhouse 
to become the largest public accounting firm. 

Confusion on Labour’s Euro Stance 

1996 Woridwfde Revenue 

1996 Worldwide Staff 




KPMG and Ernst 
Look Set to Link Up 

By Reed Abelson 

IVm- Yvrk Times Sen-ice 

NEW YORK — Two of the world’s 
biggest accounting and consulting 
firms. KPMG Peat Marwick and Ernst 
& Young, are expected to announce, 
possibly Monday, that they will merge. 

The deal would create the world’s 
largest accounting firm, with $15.3 bil- 
lion in worldwide revenue and 11,712 
partners across the globe. It would 
, eclipse the pending combination of 
£ Coopers & Lybrand and Price Water- 
^ house, announced in mid-September. 

A representative. of Ernst & Young 
declined to comment, and a KPMG 
spokesman said only that KPMG was in 
contact with another firm and was ex- 
pected 10 make an announcement early 
this week. People close to both firms said 
an announcement was likely Monday. 

With this deal and the merger of 
Coopers & Lybrand and Price Water- 
house, the so-called Big Eight account- 
ing firms would have quickly tele- 
scoped to the Big Four.. The rapid 
consolidation has already raised con-- 
ccms that companies will be left with 
fewer choices of auditors and that there 
could be greater conflicts of interest 
among firms that serve as- both inde- 
pendent auditors and consultants. 

An accounting firm that audits a com- 
pany's books, for example, might be 
reluctant to take too harsh a stance to- 
ward the company’s accounting policies 
if it also hoped to be retained as a 
consultant for the client. Consulting 
work tends to be much more profitable 
than providing auditing services. 

‘ ; * ’whether these mergers make sense 
* for the country, given the high degree of 

1 Andersen Worldwide 


• 1 KPMG 


2 Ernst & Young 


2 Deloitte & Touche* 




3 Ernst & Young 


4 Coopers & Lybrand 


4 Coopers & Lybrand 


5 Deloitte & Touche* 


5 Price Waterhouse 


6 Price Waterhouse 


6 Andersen Worldwide 


Revenue Per Partner 


1 Andersen Worldwide 


2 Price Waterhouse 1.517 

3 Ernst & Young 1.447 


1 Andersen Worldwide 




4 Deloitte & Touche* 


3 Coopers & Lybrand 


4 Ernst & Young 


5 Coopers & Lybrand 


5 Deloitte & Touche* 




6 Price Waterhouse 


CtmqM bp OvSuffFnm Deputies 

LONDON — Confusion over the La- 
bour government’s stance toward the 
European single currency deepened 
Sunday when a cabinet minis ter said 
Britain might still join by 2002. 

As Prime Minister Tony Blair pre- 
pared for a meeting with Chancellor 
Helmut Kohl of Germany, his govern- 
ment continued to prompt a guessing 
Sunday ova- when it would join 
economic and monetary un- 

Mixed messages have been emerging 
from Mr. Blair's cabinet. The latest 
came Sunday, when Health Secretary 
Frank Dobson said that contrary to 
press reports, the government had not 
ruled out joining the single currency 
before the next general election. 

“Nothing can be ruled out" he said 
on BBC television, adding, however, 
that it was ‘ ‘ not very likely* ' that Britain 

would join the single currency before 
the election, which Must be held by . 
2002 at the latest 

“What we’ve got to do is to look at 
everything that is happening in 
Europe," Mr. Dobson said. ‘ ‘We’re hy- 
ing to play a leading role in Europe, and 
we’ve got to look at everything from the 
point of view of. the interests of the 
people of this country and their eco- 
nomic interests. ” 

After a series of meetings last week 
with Mr. Blair, the chancellor of the 
Exchequer, Gordon Brown, gave an in- 
terview to The Times in which he ef- 
fectively ruled ont membership for the 
next five years. 

The Sunday newspapers reported that 
Mr. Blair, who until then had stressed 
keeping Britain's options open, had in- 
sisted on a harder line for fear that early 
entry could cost Labour the next elec- 

Mr. Brown said to The Times, “If we 
do not join in 1999, our task will be to 
deliver a period of sustainable growth, 
tackle the long-term weaknesses of the 
UJC economy and to continue to press 
for reform in Europe.” 

Although the financ e minister’s aides 
were happy with interpretations that the 

government was ruling out monetary 
union until at least 2002, 

Mr. Dobson 
said Mr. Brown's interview had been 
misunderstood. “People choose to read 
into his words all sorts of things,” he 
said. “They ignore die article and start 

He said the government’s position on 
economic and monetary union, due to 
begin in January 1999, remained un- 

“We said it’s pretty unlikely that 
we'd go into the first wave of the euro, if 
it actually starts in 1999,” Mr. Dobson 
said (Reuters, AFP ) 

Known as Deloitte Touche Tohmatsu International outside the United States. 

Source: Bowman's Accounting Report 

Market Boom Confirms London’s Roar 

He New Times 

concentration, is another question," 
said Richard Breeden, a former chair- 
man of the Securities and Exchange 
Commission and a former partner at 
Coopers who now has a consulting busi- 
ness in Greenwich, Connecticut “It 
would certainly fence the antitrust au- 
thorities to take a look.” 

Any merger between the two firms 
would seem certain to undergo antitrust 
scrutiny .'particularly in the wake of the 
Coopers & Lybrand-Price Waterhouse 
merger. A deal also, would face other 
hurdles, including review by regulators 
and a vote by the firm's partners. 

Ernst & Young audits Coca-Cola Co., 
among other clients, and KPMG audits 
such well-known companies as Citicorp 
and General Electric Co. 

Still, while the proposed merger does 
follow quickly on the heels of the 
Coopers-Price announcement, “It 
makes sense to do something rapidly,” 
said Arthur Bowman, editor of Bow- 
man’s Accounting Report. Mr. Bow- 

man, who has disclosed accounting 
mergers In the past, said Friday that a 
merger between Ernst and KPMG 

By Tom Buerkle 

International Herald Tribune 

would be announced shortly. 

Accounting firms have been merging 
to try to reduce costs and bolster growth 
when their traditional lines of business 
are slowing and auditing has become 
fiercely competitive. 

“There has been quite a lot of pressure 
on accounting firms, and these mergers 
are in response to it,” Mr. Breeden said 

The major U.S. accounting firms 
once known as the Big Eight went 
through a similar fiuny of combinations 
in the late 1980s, when Deloitte, 
Haskins & Sells merged with Touche, 
Ross &Co. to create Deloitte & Touche 
and Ernst & Whinney joined with Ar- 
thur Young & Co. to become Ernst & 

While those mergers were expected 
to create global operations able to 

See MERGE, Page 13 

LONDON — The buzz on the streets 
and in the dealing rooms of Loudon’s 
financial district reflects the hectic face 
of developments that signal boom time 
in Britain's largest industry. 

European corporations are on a re- 
cord-breaking spree of mergers and ac- 
quisitions to enhance their global power 
in industries ranging from insurance to 
publishing. Stock prices in Britain and 
across Europe have soared on the 
strength of low inflation and acceler- 
ating growth. And speculation about 
when Britain will enter a single Euro- 
pean currency has caused stocks, bonds 
and currency rates to gyrate wildly. 

But any fears that me financial dis- 
trict’s preeminence as an international 
financial center might be eroded by 
European monetary union or innova- 
tions in Frankfurt and Paris have van- 
ished as the leading securities houses 
expand rapidly here to cope with an 

explosion of deals, share flotations and 
rising stock prices. 

“Everything we see suggests that the 
trend is into London,” said Rich Hay- 
den, a senior executive at Goldman 
Sachs International here. “Everyone is 
bolstering their staff and growing their 
London headquarters.” 

It is a sign of the strength of the 
financial district, known as the City, that 
the introduction set for Monday of an 
electronic trading system at the London 
Stock Exchange, a major change 
likened to the 1986 Big Bang that elim- 
inated barriers between stockbrokers 
and market-makers, plays only a minor 
role in tire current bullishness. 

The trading system, known as SETS, 
is expected to promote a sharp decrease 
in trading costs and help the London 
exchange close a technological gap with 
innovative Continental bourses such as 
those in Amsterdam and Paris. Bnt even 
the exchange’s head of markets devel- 
opment, Martin, Wheatley, calls SETS 
just “another string to the bow of Lon- 

don.” The reason is simple: Many Con- 
tinental marketplaces have modernized 
dramatically in recent years. 

The German, French and Swiss fu- 
tures exchanges, which have gained 
market share, last month announced 
plans to combine their trading and clear- 
ing operations to create an even stronger 
competitor to the London International 
Financial Futures Exchange, and next 
month the German stock exchange, 
Deutsche Boerse AG, will introduce its 
own electronic trading system, dubbed 

But the growing ability to trade 
stocks, currencies and commodities at 
the push of a button so far has only 
enhanced London’s power. The City’s 
unparalleled collection of traders and 
bankers, along with the armies of law- 
yers, accountants, printers and other ser- 
vice providers, makes London the place 
to do business. 

“You have such a tremendous con- 

See TRADING, Page 13 


For Lower Prices , Analysts Like GTE’ s MCI Bid 

HUumiherS News 

necticut — GTE 
Corp.'s $28 billion' 
cash offer for MCI 
, Communications Ccxp. 
would create an alliance 
‘ providing Internet services, 
that could offset WorldCom 
Inc. 's recent emergence in the 
market, analysis said, 

GTE’s bid came last week 
as MCI's directors woe 
studying a bid made by 
WorldCom on Oct. 1. Worid- 
Com's stock bid came after 

British Telecommunications 

PLC reduced its offer for 
MCI. the second-largest LLS. 
long-distance company, be- 
hind AT&T Corp 

A combination of GTc ana 
MCI could foster more com- 

petition that would benefit 
consumers, business custom- 
ers and Internet service pro- 
viders because it would prob- 
ably lead to lower prices than 
an MCf-WoridCom power- 
house would, analysts said. 

“From a competitive point 
of view, it would be bett er for 
the industry if MCI and GTE 

get together than if MCI and 

WorldCom do,” said Eric 
Paulak, senior analyst at Gart- 
ner Group. 

During the past year, phone 
companies have built up their 
Internet services as they ex- 
panded their telecommunica- 
tions offerings. MC3, GTE’s 
BBN unit and WorldCom’ s 
Uunet Technologies unit are 
among a handful of compa- 
nies that ’run the network of 


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networks that forms the In- 
ternet’s backbone. 

They sell excess network 
capacity to thousands of other 
Internet service providers, 
connect corporations and 
consumers to the Internet and 
exchange Internet data 
among service providers. 

At issue is which combin- 
ation would have more con- 
trol over the so-call ed In ternet 
backbone. Both GTE, the 
third-largest U.S. local phone 
c omp any, and WorldCom, the 
fourth-largesi U.S. long-dis- 
tance company, have acquired 
leading Internet service pro- 
viders in the past year. ' 

WorldCom acquired Uun- 
et, which claims to cater to the 
largest number of business 
customers, when it bought 
MFS Communications, Last 
month, WorldCom agreed to 
acquire the network-services 
units of CompuServe Corp. 
and America Online Inc. 

Far its part, GTE in August 
acquired BBN, which also 
caters to business customers 
and other Internet service pro- 
vides, for $616 m ill lio n . 

MCI and WorldCom to- 
could carry as much as 
ir of the Internet’s 
lysts said. MCL the 
leading Internet service pro- 
vider. is estimated to handle 
as much as 40 percent of the 
traffic on the global computer 
network. WorldCom’ s Uunet 
is the third-largest provider. 

according to Gartner Grou^. 

'It would be easier for 
WorldCom and MCI to con- 
trol prices than it would be far 
GTE and MCI,” said Rebecca 
Wetzel, director of Internet 
consulting at TeleChoice Inc. 

Sprint Corp. is the second- 
largest provider, and PSInet is 
the fourth, Gartner said. 

While analysts did not 
provide estimates of GTE’s 
share of the Internet service 
market, they said it was much 
smaller than WorldCom ’s 
when the traffic bandied by 
Uunet, AOL’s network ser- 
vice and CompuServe were 
factored in. 

Another way of looking at 
the companies’ reach is. based 
on the number of corporate 
customers they have. Woiid- 

Com’s units have 71,600 cus- 
tomers, while GTE’s BBN has 
2,700. MCI does not disclose 
the number of corporate cus- 
tomers it has, though it has said 
that as many as 35 of the major 
companies on the Fortune 100 
list are MCI customers. 

Access prices could go 
down as networks consolidate 
their systems, said Joe Bart- 
lett, an analyst at Yankee 
Group. IfMCT and WorldCom 
merged, they could try to keep 
prices low to ensure that they 
could lease the networks they 
have invested in, he said. 

Meanwhile, the Internet 
business is growing so rap- 
idly that there are still a lot of 
Internet service providers and 
plenty of competition. World- 
Com said. Some 3,000 to 
4.000 Internet service pro- 
viders already exist, and more 
huge companies are deciding 
to offer Internet services, the 
company said 

Internet address : Cyber- 

* Recent technology articles: 

South Korea Plans a Bailout Fund 

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SEOUL — South Korea said Sunday that it 
would establish a 3.5 trillion won ($3.83 
billion) fhnd aimed at writing off bad loans in 

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Forward Rates 

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porate troubles have become a big h e a d ach e ,’ 
said Stun Dong ChuL deputy director of the 
government’s industrial fund division. “They 
should be tackled in a more realistic way.” 

The Ministry of Finance and Economy said 
the fund would buy up to 4,5 trillion woo 
worth of bad loans by the end of the year. It 
said bad loans would be bought at sharply 
discounted prices after the appraisal of col- 
lateral and other elements. 

The ministry said the fond would prefer to 
rairft collateral, which can easily be converted 

into cash, and would encourage the state-run 
Korea Land Development Corp. and other 
real estate dealers to become more active 

South Korea also pledged mare tax ben- 
efits for individual and institutional stock 
investors in an attempt to shore up the shaky 
stock market. 

In new stimulus measures, unveiled at a 
meeting of top officials of the government 

and tImT governing Wily, Finance and Econ- 
t JKyoi 

omy Minister Kang Kyong Shik called for the 
extension of a tax-free grace period for in- 
dividual savings for stock investment until 
the end of 1998. He offered to deduct up to 10 
percent from capital gains taxes to protect 
.investors who retain shares for more than 

(Reuters, AFP) 

three years. 

Ct ndy 

Crawford’s choice 

is k gold with diamond-set bezel. 
OMEGA — Swiss made since 1848. 

„ Q 


The sign of excellence 



PAGE 13 

> AT&T Set 
To Appoint 
New Chiefs 

One Post Might Go 
To Head of Hughes 

By Seth Schiesel 

Nn ‘ Yori Times Sen-ice 



E ksmjesS 

^Th^£SS < ! rp '’ for ai Ieast «' ° f 

posts, according to 
executwes close to the situation 

- Tjjf ex . ecu 0ves said that Michael 
SnuA. vice chairman of Hughes, 
would replace Mr. Armstrong as 
chairman and chief executive of 
Hughes. Mr Smith is a brother of 
John Smith Jr., chairman and chief 
executive of Hughes’ corporate par- 
en 7rV eneral Motors Corp. AT&T 
"iSfflS** declined to comment 

AT&T, the largest telecommuni- 
cations company in the United States 
with J996 sales of $52.2 billion, is 
known to have been negotiating with 
Mr. Armstrong for months as the 
company looked for a successor to 
Robert Allen, AT&T” s current chair- 
man and chief executive. 

The search has taken on particular 
urgency recently as a wave of huge 
takeover bids has roiled the tele- 
communications industry. 

MCI Communications Coip., the 
No. 2 long-distance company and 
AT&T’s biggest rival, is being pur- 
sued as an acquisition target by at 
least three large suitors — British 
Telecommunications PLC, GTE 
Corp. and WorldCom Inc. — with 

_ Ed BaOev/Tbo Amoctkcd Pm 

Michael Armstrong for AT&T? 

bids of $19 billion to $30 billion. 

AT&T has appeared to be some- 
what on the telecommunications 
sidelines since its merger taltrc fr-? T 
.apart earlier this year with SBC 
Communications Inc., one of the 
regional Bell companies, amid con- 
fusion between the two gjdpg a nd 
strong denunciations from die chair- 
man of the Federal Cnmmii n ira n nns 
Commission, Reed HundL 

And although the c omp any’s stock 
has performed well in recent months 
as AT&T has shown signs that it may 
be slowing its market-share erosion 
in its core long-distance business, it 
has yet to unveil a comprehensive 
strategy for expanding into the lu- 
crative local telephone market 

It was the abetted talks with SBC 
that helped hasten the departure 
from AT&T of the last man who was 
meant to assum e the company’s top 

John Walter, who had run R JL 
Donnelly and Sons Co., a large com- 
mercial publisher, was hand-picked 
by Mr. Allen to be his successor late 
last year. Mr. Walter left the com- 
pany this summer in the wake of the 
SBC debacle. 

The Small-Gap Fever Spreads 

Some European Issues Could Ride a V.S. Style Rally 

By Timothy Middleton 

New York Times Service 

NEW YORK — With small- 
company stocks rallying in the 
United States, can the jest of the 
world be far behind? ■ 

. “It’sjust a malter of time before 
die fundamentals assert them- 
selves,” said David Herro, man- 
ager of the $70 million Oakmark 
International S mall Cap fond. The 
bottom lines of many small 
companies around the world are 
strong, he said, but they have gone 
largely unnoticed. 

- Conditions in Europe are 
viewed as particularly ripe for the 
kind of economy that benefits 
small, domestically oriented 
companies and encourages in- 
vestors to buy diem. 

“International small-cap is 
probably one of the most attractive 
and oversold areas of the global 
equity universe,” Mr. Herro said. 

Lately, however, nearly all the 
market’s vogues and vagaries have 
bun small companies based out- 
side- the United States. The current 
fascination with index funds, for 
example, benefits mostly large 
corporations, while the U.S. pro- 
ductivity revolution has left much 
of the rest of the world in the 

The only non-U. S. companies to 
profit from a strong American dol- 
lar have been exporters — usually 
big companies. The currency 
calamity in Southeast Asia is hurt- 
ing the economies of that region — 
punishing small companies the 
most because their business is 
mostly domestic. 

A result has been fire-sale prices 
among the stocks of many small 
companies — and of the mutual 

funds dial invest in them. 

The database of Momingstar 
Inc., the fund-research concern 
based in Chicago, includes 18 
funds that invest exclusively out- 
side the United States whose me- 
dian market capitalization is below 
$1 billion. 

Their average gain in the first 
nine months of die year was a 
lackluster 8.5 percent, consider- 
ably short of the 10.4 percent gain 
in the most common international 
benchmark, Morgan Stanley Cap- 
ital International’s EAFE index, a 
measure of mostly large compa- 
nies in Europe. Australia and 

“It’s been quite hard for in- 
ternational f unds overall to do 


well,” said Iain Clark, chief in- 
vestment officer of Seligman Hen- 
derson in London. He added, 
however, that he expected many 
stock markets to pick up in the 
coming mouths, particularly in 

“Two things are. happening,” 
he said. “We’re getting quite a 
solid economic recovery now, and 
that’s generally not a bad period 
for small-caps. Second, we’re get- 
ting quite good earnings growth in 
Continental Europe, as we see 
companies there taking a closer 
interest in what they're delivering 
to shareholders.” 

Corporate restructuring fueled 
explosive growth in U.S. stocks 
early in this decade, and the same 
kind of revamping is beginning to 
spread from Britain to the Con- 
tinent, said Simon Rudolph, man- 
ager of the Templeton Foreign 
Smaller Companies fund, one of 

the few international small -com- 
pany funds to outperform the 
EAFE index this year. 

A flurry of recent biilion-doliar 
deals and hostile takeover bids — 
perhaps the most flamboyant be- 
ing a $9 billion hostile bid by As- 
sicuraziom Generali SpA, the Itali- 
an insurer, for Assurances 
Generates de France SA — in the 
view of many can only accelerate 
Europe’s push toward greater ef- 
ficiency and competitiveness. 

In picking a fund that invests in 
international stocks, the ability of 
its managers to pick the right spots 
geographically is probably more 
important than any other consid- 
eration. said Lewis Altfest. chief 
of the financial planning firm bear- 
ing his Tiamfr jn Manhattan. 

■‘There are great diversities 
abroad,” he said. “If you’ve in- 
vested in Europe, you've been a 
winner. If you’ve invested in Asia, 
which was known as the area of 
guaranteed growth, that has been a 
major disappointment.' ' 

Economic problems have been 
festering throughout Asia, from re- 
cession-scarred Japan to Malaysia 
and Thailand, which have seen 
their currencies devalued. 

Small companies usually com- 
mand higher prices than large 
ones, relative to their earnings, be- 
cause they are seen to have greater 
growth potential. 

In the United States, the ratio of 
current prices per share to earnings 
forecast for 1998 is 19.5 for small 
companies and 17.7 for big ones, 
according to Smith Barney. This 
reflects in pan the large number of 
small high-technology companies 
on which investors have often 
pinned hopes for outstanding 

MERGE: KPMG and Ernst Are Expected to Link Up and Form the World's Largest Accounting Firm 

Continued from Page 11 

provide a wide array of accounting 
and consulting services to their cli- 
ents, the accounting firms seem to 
have reached the conclusion that 
they must be even larger to suc- 

“We’ve certainly got a megamer- 
ger boom going on.” Mr. Breeden 
said. “Why shouldn’t the account- 
ing firms imitate their clients?” 

While none of the big accounting 
firms appear to be struggling, th^r 
all seem motivated to increase their 
size and breadth of their services as 
quickly as possible. 

“People are looking for critical 
mass,” said Dennis Beresfond, a 
former partner at Ernst & Young, a 
former chairman of the Financial 
Accounting Standards Board and a 
professor of accounting at the Uni- 

versity of Georgia. “Nobody wants 
to be the last one without a marriage 

Ernst in particular seems to be 
pursuing a strategy of growth 
through acquisition, according to 
Mr. Bowman, who said the firm 

? ushed to team up with Arthur 
r oung in 1989, acquired Kenneth 
LeventhaJ & Co., a Los Angeles 
firm, in 1995 and was talking with 
Deloine & Touche this year. KPMG 
may be attractive to Ernst because of 
its strong presence internationally. 
In terms of the merger, KPMG “will 
become the dominant player here,” 
he said. 

. Accounting firms, seem con- 
vinced that companies, which in- 
creasingly have operations across 
the globe, need both auditors and 
consultants that do business every- 

The merger also would give the 
two firms an opportunity to cut costs 
by combining operations. Mr. Bow- 
man said the two, which have a 

‘We’ve certainly got a 
megamerger boom 
going on,’ said 
Richard Breeden, a 
former SEC chairman. 

larger roster of partners than many 
of their peers, probably would lay 
off partners as a result of the com- 

• *1 think it’s going to add up to too 
many partners,” he said. 

But antitrust concerns could de- 
rail both the latest potential merger 

and the planned Coopers-Price Wa- 
terhouse combination. 

When the Big Eight firms became 
six, “a lot of people felt that was 
enough contraction,” said Mr. 

Chief financial officers, for one. 
may be upset at the di minishin g 
number of auditors. In particular, 
clients that have switched from 
Ernst to KPMG or vice versa may 
find that they may want to consider 
finding yet another auditor. Accord- 
ing to Public Accounting Report, an 
industry newsletter, more than 120 
companies have switched from one 
firm to the other since January 

Other huniles to a merger be- 
tween Ernst and KPMG include dif- 
ferences between the two firms’ 
partners and how much they bring in 
in revenue. While Ernst & Young’s 

5392 partners generated an average 
of $1.4 million each in revenue last 
year, KPMG’s 7,458 partners gen- 
erated only $ 1 3 milli on, the lowest 
industry average. 

Still, the merger may go through 
as accounting firms race to become 
the largest “Nobody talks about 
being No. 1,” Mr. Bowman said, 
* ‘but it’s a big deal They want to be 
No. 1.” 

Other firms also may decide to 
reconsider their options, including 
the former leader of the pack, An- 
dersen Worldwide, which grew to 
No. 1 through its successful con- 
sulting practice. - 

With about $93 billion in rev- 
enue last year. Andersen would be- 
come an also-ran as only the third 
largest among die re m ai nin g four 
firms. A spokesman for Andersen 
declined to comment 

TRADING: London’s on Top 

Continued from Page H 

cenmuion of human re- 
sources in London that have 
skills related to the financial- 
services industry that it cre- 
ates its own momentum,” 
said Kim Schoenholz, the 
chief economist of Salomon 
Brothers, who is based in 

According to a recent study 
conducted for the Corpora- 
tion of London, the agency 
that promotes London s fi- 
nancial district, around 
600,000 people work in fi- 
nance and business services 
in greater London. That figure 
equals the entire population 
of Frankfurt The biggest 
threat to London’s dominance 
comes not from Frankfurt or 
Paris, the study found, but 
from the City’s dogged 
streets and overburdened 
public-transportation system. 

Continental banks continue 
to expand here after acquisi- 
tions of British investment 
banks in recent years by 
Deutsche Bank AG, Dresdner 
AG Bank and Swiss Bank 
Coro.: Rabobank Nederland 
of the Netherlands and Ger- 
many’s Commerzbank AG 
have recently leased new 
buildings to house their bud- 
ding investment-banking dm- 
siems. Axa-UAP. the big 
French insurer, Hus year 
picked London as the base for 
its assct-managem^JwooB 
that holds neariy $500 billion. 

“London continues to play 
a unique role as far as in- 
ternational asset management 

and investment banking is 
concerned,” said Ronald 
Gould, managin g director of 
Axa Investment Managers. 

London also has been un- 
affected by the death throes of 
British investment banking. 
Barclays PLC is trying to sell 
die equities and - corporate-fi- 
nance business of its BZW 
unit, and National Westmin- 
ster Bank PLC is believed to 
be considering a similar exit, 
but the City’s fortunes have 
become totally divorced from 
the famines of British-owned 
firms. As bankers here put it, 
London is to finance what 
Wimbledon is to tennis: This 
remains the place to play even 
if the Brits never win. 

One of the best barometers 
of business is a recent surge in 
the property market as banks 
scramble for space in a tight- 
ening market. 

Several U.S. securities 
houses inducting JP- Morgan 
& Co. and Goldman Sachs are 
looking for room to expand 
their operations, while Mer- 
rill Lynch & Co. is preparing 
to move to larger premises. 

“I don’t thmk there is a 
sector of the market that isn’t 
expanding,” said Craig Mc- 
Donald of Healy & Baker, a 
real estate consultancy. - 

Rents for prime space in 
the City now run at about £45 
($72.75) a square foot, well 
below the peak of £70 in 1988 
but up more than a third from 
the recession levels of the 
early 1990s. The vacancy rate 
has fallen to -7 percent from 
nearly 20 percent. 



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Consolidated Statements of Condition 
and Summaries of Results 

These statements and summaries represent the consolidated accounts of Republic New York Corporation and its 
wholly owned subsidiaries and of Safra Republic Holdings S A. and its wholly owned subsidiaries. Republic New 
York Corporation owns 49% of Safra Republic Holdings S.A.. which is accounted for by the equity method. 


September 30, 


September 30, 





fin ttairarKh of U5S except per 'hare dauj 

Cash and due from banks 

$ 862.840 

$ 7 J 7.345 

S 107.481 



Interest-bearing deposits with banks I 





Precious metals 1 





Investment securities 





Trading account assets i 





Federal funds sold and securities purchased 

under resale agreements j 





Loans, nei of unearned income 

1 3.004.684 

II. 789.344. 


1.8 19.200 

Allowance for possible credit losses 









Total assets 

S 57.791.765 

S 50.601.770 

S 18.997.446 

S 16.867.956 


Total deposits 

$ 33.437.88 ( 

S 30.980.814 

S 14.675.224 

S 13.096.516 

Trading account liabilities : 





Short-term borrowings - - 





Other liabilities 





Long-term debt 





Subordinated long-term debt and perpetual capital noies 





Mandaiorilv redeemable preferred securities 





Shareholders' Equity 

Cumulative preferred stock 





Common stock and surplus, net of treasury shares , . . 





Retained earnings 





Net unrealized appreciation on 

securities available for sale, net of taxes 





Total shareholders' equity 


3.227.29 5 



Total liabilities and shareholders' equity 

S 57.791.765 

$ 50.601.770 

5 18.997.446 

S 16.867.956 

Book value per share 

S 55.35 

$ 48.02 

$ 50.49 



Client portfolio assets held in custody 

S 16.814.199 


9.638.4 12 

Net income, for the nine months ended 

S 333.037 

S 310.294 

$ 184.933 



Net income per common share 

$ 5.77 

$ 5.15 

$ 5.24 



Average common shares outstanding 







r Risk-Based Capital Ratios 

As of September 30. 3 997, Republic New York Corporation's risk-based core capital ratio was 1 3. ! 0% (estimated) and tolal 
qualifying capital ratio was 21.90% (estimated). The ratios include the assets, risk-weighted in accordance with the requi- 
rements of the Federal Reserve Board specifically applied to Republic New York Corporation on a fully consolidated basis, 
and capital of Safra Republic Holdings SA. Total consolidated assets under these requirements exceeded US$ 75 billion 
^ and total consolidated capital, including minority interest and subordinated debt, exceeded US$ 7 billion. y 

Republic New York Corporation Safra Republic Holdings SA. 

fifth Avenue ai -iflifi Sired 32. boulevard Royal 

Sc- -ft**.**,™. Banking Locations L-1M9 

New York - Geneva - London ■ Beijing - Beirut • Beverly Hills ■ Buenos Aires ■ Cayman Islands » Copenhagen * Ena no * Gibraltar ■ Guernsey 
Hong Kong ■ Jakarta • Los Angeles * Lugano * Luxembourg • Manila • Mexico Ciiy • Miami • Milan • Monte Carlo • Montevideo • Montreal 
Moscow - Nassau • Paris * Puna del Este * Rio de Janeiro • Santiago • Sao Paulo • Singapore -Sydney ■ Taipei • Tokyo “ Toronto ■ Zurich 

Japan Hopes for Growth of 1.9% 

TOKYO (Reuters) — Japan may find it difficult to achieve 
its growth tarcet of 1,9 percent in the fiscal year ending in 
March 1998, bur it hopes to get close. Economic Planning 
Agency Minisier Koji Omi said Sunday. 

“The 1.9 percent economic growth target may be difficult 
to achieve, but we hope to come close to the number by 
coming up with measures to cope with the economy,” he said. 
His party is due next week to announce measures to get the 
economy moving again. 

On Friday, Trade Minister Mitsuo Horiuchi said Japan's 
economy was sluggish because of the lingering impact of the 
consumption -rax increase in April. 

Mr. Omi said it was important for Japan to implement a net 
reduction in coiporate taxes in the middle to longer term. 

Italy Prices Telecom at Maximum 

ROME (Bloomberg) — The Treasury’ set the share price of 
Telecom Italia SpA in this week’s public offering at the 
maximum of 1 1,200 lire ($6.47) a share, or just above the 
Friday closing price of 1 1,161. 

The offering of the state’s 32.8 percent stake in the tele- 
phone company is expected to be the largest state asset sale in 
Italy’s history. It will end the government's ownership of 
Telecom Italia and bring the state an estimated 1 9.3 trillion lire 
in revenue. 

The Treasury said Saturday the final price would be the 
lowest of the following three figures: the price of 1 1,200 lire; 
the closing price this Friday minus 3 percent (4 percent for 
Telecom Italia employees), or the institutional investors’ 
price, which will be announced Saturday. 

Parc Asterix Sets Price for Offering 

PARIS (Bloomberg) — Shares of Parc Asterix, a French 
theme park operator, have been priced at 153 French francs 
($25.77). toward the middle of a previously announced price 
range of 145 francs to 165 francs. 

The company said it was offering 2.13 million shares in its 
initial public offering and that 327,000 of these shares were 

Investors can buy shares until Thursday. The stock is 
scheduled to trade on a secondary French exchange Friday. 

Parc Asterix's shareholders include Cie. Generate des 
Eaux, Accor SA and Barclays Bank PLC. which together own 
about 1.8 million shares. 

Bids for Siemens Unit Wide Open 

MUNICH (Reulers) — Siemens AG said no potential 
buyers for its defense electronics unit had been ruled out, after 
a rash of reports that it was selling to a British-German 

* 'Further negotiations are ongoing. ' ' a S iemens spokesman 
said. “No potential buyer has been ruled out. and any reports 
to thar effect are pure speculation. ” 

A report in the daily Die Well said Saturday that Siemens 
would “in all likelihood” sell the unit to a consortium of 
Daimler-Benz Aerospace AG and British Aerospace PLC. 
The French daily Le Monde said Siemens was expected to 
announce the sale of the unit to the British-German defense 
consortium on Monday and that the consortium had offered to 
pay more than $590 million. 

Moscow Optimistic on IMF Payout 

MOSCOW (AP) — Russia said it was having a hard time 
meeting the terms of its $ 10 billion Loan from the International 
Monetary Fund, but it said it still expected to get the next 
installment in November; 

The deputy prime minister. Yakov Urinson, said Friday that 
Russia's tax-collection rate was still lagging but said, “The 
situation is much better than it was before.” 

An IMF mission is to arrive in Moscow at the end of tile 
week to monitor Russia's performance under a three-year loan 

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PAGE 16 



StrUm IHImMIHii 

The Lecce defender Luigi Piangerelli, left, pursuing Patrick K1 invert of AC Milan on Sunday. Lecce won, 2-1. 

Spain’s Surprise Teams Both Win, 1-0 

Cttrpdnl tr? Our Safi Fnm Dispatches 

Mallorca and Celia Vigo, the two 
surprise teams in the Spanish league, 
maintained their winning form Sunday 
with 1-0 victories. 

An early penalty shot by Alexander 
Mostovoi of Russia gave Vigo the vic- 
tory against Valencia, while Amato 
scored the only goal as Mallorca beat 
Santander. Vigo and Mallorca are level 
on points, one behind third-place At- 
ledco Madrid. 

On Saturday, Christian Vieri scored 
three goals as Atlerico beat Zaragoza, 5- 
1. The Spanish international striker 
Kiko and the teenager Jose Mari scored 
the other Atletico goals. 

Barcelona, die leader, which had won ■ 
its first six games, drew against Com- 
postela in Santiago, 2-2. 

After falling 2-0 back early in the 
second half, Barcelona struck hack 
swiftly through Oscar Garcia and 
Rival do, who scored when the referee 
awarded an indirect free kick six meters 
out after the Compostela goalkeeper 
picked up a back pass. 

Real Madrid, in second, moved to 
within two points of Barcelona with the 
3-0 home victory over Tenerife. The 
newly signed forward Fernando Mori- 
entes scored an early goal. Clarence 
Seedorf and the Montenegrin striker Pre- 
drag Mijatovic completed the victory. 

Netherlands PSV Eindhoven rest- 
ed many of its regular first-team players 
Sunday, but brushed aside NEC Nijme- 
gen, 4-0. PSV, the reigning champion, is 
now second to unbeaten Ajax, which did 
not play. 

Feyenoord fell back into fourth place 
behind SC Heerenveen, after losing, 2- 
0, at Willem II Tilburg. 

Feyenoord was outplayed in all areas 

and fell behind in the 73d to a header by 
the Czech midfielder Tomas Galasek. 

Heerenveen drew, 1-1, with the other 
Rotterdam team, Sparta, on Saturday. 

GERMANY A late goal by the striker 
Juergen Rische let the surprise leaders 
Kaiserslautern snatch a 1 -1 draw at Bayer 

European SocciiIoondup 

Leverkusen on Saturday and stay four 
points clear of Bayern Munich in the 
German first division. Bayern also 
fought back from one goal down to draw 
at Karlsruhe SC, 1-1. 

Leverkusen, last season's runner up , 
took the lead with a 7 2d minute goal 
from its captain, Markus Happe. 

Kaiserslautern was under pressure for 
most of the second half, but averted its 
second defeat of the season when Rische 
struck from close range in the 85th 

Bayern fell behind in the40th minute. 

when Karlsruhe's under-21 internation- 
al. Markus Schroth, scored. The Bayern 
midfielder Michael Tam at gave the vis- 
itor a point by scoring in the 78th 

Scotland Marco Negri of Italy 
scored four times as Rangers, the reign- 
ing champion, destroyed Dunfermline 
on Saturday, 7-0, to go to the top of the 
premier division for the first time this 

The English international Paul Gas- 
coigne, the subject of intense transfer 
speculation, scored two outstanding 
goals in the second half. Brian Landrup 
of Denmark started die spree after 16 

Negri took his tally to 22 goals in all 
of his matches this season and 1 1 in the 
last six games. 

Celtic made it possible for their arch- 
rivals to go to the top with a 2-1 victory 
at Hearts, which stalled the day in first 

Jakarta Soccer Final Halted 

The Associated Press 

JAKARTA — Police with gas 
masks and automatic weapons were 
1 needed to restore order as 130,000 fans 
lit fixes in the stadium and forced the 
soccer final at the Southeast Asia 
Games to be halted at halftim e. 

After a 45-minute delay Saturday, 
the game was resumed. Wi thin a 
minute, crowds again threw debris 
onto the field, but Indonesia players 
were able to calm them down. 

Two minutes after the restart, Yuli- 
anto scored to pull Indonesia even and 

send the fans into a frenzy. The game 
was just 10 minutes old when fans at 
one end caused a stoppage of four 
minutes by pelting the .playing area 
with debris. When play ' resumed, 
Thailand took the lead at 33 minutes. 

Players tried to take' the field to 
begin the second half, but had to re- 
treat as the fans in the overcrowded 
main stadium got out of control. 

State-owned television, which was 
broadcasting the game live, changed 
to other programming soon after trou- 
ble began. 

Shining Bright in City of Light 

Jordan Dominates Paris Final With Joke, Fake and 27 Points 

By Ian Thomsen 

International Herald Tribune 

PARIS — It is no easy 
thing to bring Michael Jordan 
to Europe. First of all, you 
can't bring just him. His team- 
mates have to come along too, 
with their families, ana the 
coaches, plus most of the staff 
and the boxes of equipment. 

Then you need five cham- 
pion basketball clubs from 
Europe and Sooth America to 
provide him with a canvas. 
Yon need a circus of mascots 
and dancers to fill in the tele- 
vision timeouts, sellout 
crowds both nights, nearly 
1,000 media people to record 
his movements and a Most 
Valuable Player trophy for 
his souvenir. 

All of it was worthwhile, 
because wfaDe television con- 
tinues to make him the worid’s 
most famous active athlete, it 
also doesn’t do him justice. 
You had to see him in person 
Friday and Saturday nights at 
the McDonald’s Champion- 
ship in Paris to realize how 
difficult the ganw» is, even for 
him at times, and yet how eas- 
ily he is able to control it 
Every star commands his 
field of gravity. Jordan’s was 
measured in the huge support- 
ing show surrounding turn, in 
his own continuing ability to 
float gravity itself and most of 
all in his ability to tell a good 
joke, to make the defensive 
shadow break into a laugh 
even when he’s struggling to 
just keep up. 

With the star scoring 27 
points, Jordan’s Chicago 
Bulls won the final by 104-78 
over the European champion, 
Olympiakos Piraeus, bat the 
Greeks hang in -stubbornly 
nnril the fourth quarter. 

Late in the first half, they 
were trailing by a dozen 
points when their guard Mi- 
lan Tomic broke into a giggle. 
He bad been wondering what 
to do with the ball when the 
world’s greatest player ' 
reached out and tugged on the 
hem of his shorts. Then, at the 
other end of the court, with 
Tomic all over him, Jordan 
timed their bumping to ef- 
fortlessly knock the smaller 
man backward. The Greek 
defender was laughing, 
suckered ag ain, 

“A couple of tiroes, I 
would give a guy a head-and- 
shoulder fake, and I could tell 
they were sensing the worst," 
Jordan said. “I could see they 
were sitting there dreaming of . 
playing Michael Jordan one 

on one. Well, this is their op- 
portunity. This isn’tTV. They 
can't change the channel 

"Their No. 11,1 gave him a 
head-and -shoulder fake, and I 
thought be was going to lose 
his shoes." Jordan said of die 
incident with Tomic. “He 
thought it was funny. He 
Jai^todt so I (to u ghed too,’^ 

Jordan’s fast year indie Na- 
tional Basketball Association. 
Phil Jackson is convinced that 
he will be leaving as coach of 
the Bulls next spring. Jordan 
says he won’t put np with a 
new coach and a new system. 
As the defending NBA cham- 
pion, Chicago was invited to 
(he eighth McDonald’s 
Championship, the exhibition 
tournament that will become a 
credible world championship 
match as soon as the NBA 
representative is beaten for 
die first time. 

When Jackson accepted the 
championship trophy, he 
looked a bit like someone who 
had organized his own sur- 
prise birthday party: It 
couldn't compete with the real 
thing. But the crowds of more 
than 13,000 for each game un- 
derstood this, and it mattered 
not a bit. Every time Jordan 
touched the ball, hundreds of 
cameras went off. 

Still, the Bulls straggled 
Friday night when they made 
their international debut with 
an 89-82 victory over the 
French champion, PSG-Ra- 
cing of Paris. 

Without D ennis Rodman, 
who as a result of illness has 
yet to pass his team physical or 
sign a contract for mis season. 

the Bulls were outrebounded 
53-46. with the Belgian player 
Eric Struelens grabbing 20 of 
them for PSG. 

Without his sidekick Scot- 
tie Pippen, who is recovering 
from foot surgery, Jordan 
seemed like a ringer on his 
own team. He scored. 28 
points, and yet the game was 
dull around him. 

“We made a lot of mis- 
takes. and we seem so ill at 
ease with each other, which is 
not typical of this team," 

The Bulls had lost two of 
their three NBA exhibition 

games before arriving in Paris 

on Tuesday. When play 
stopped, they stood on the 
court pointing directions to 
each other like actors in re- 
hearsal. It was proof that the 
game is not as easy or as cho- 
reographed as Jordan some- 
times makes it seem. 

When asked whether the 
result would have changed if 
the Bulls had been without 
Jordan,' die coach, Bozidar 
MaJjkovic, said yes, his Paris 
team would have won. 

“Who would know? How 
could you make a statement 
like that?” Jackson respond- 
ed with some exasperation. 

* But this semifinal might 
have provided European bas- 
ketball with a myth-breaking 
revelation. The Bulls sur- 
rounding Jordan last weekend 
were a team of roleplayers. 

When healthy, Chicago is 
me of the greatest of all time, 
capable of winning its sixth 
NBA title this spring. But re- 
move die top three players — 
Jordan, Pippen ana Rodman 

— and suddenly die Bulls 
would look no more dangerous 
than a great European team. 
Their fourth-best player, Tom 
Kukoc, recovering from a foot 
injury, shot 2-for-14 over the 
two games for Chicago. 

The Bulls came out much 
stronger for die final Saturday 
night Within 48 seconds, it 
was clear that they were mean- 
ing to play tougher defense 
and ran whenever possible. 

At times, the Greek team 
was their equal, thanks to Ar- 
turas Kamisovas, who had 19 

? Dints, and center Dragon 
arlac, once a Bulls draft 
pick, who scored 14 points i , 
with a game-high 1 1 re-o . 
bounds despite inspired op- 
position from Luc Longiey 
and Bill Wennington. 

They were the necessary 
character actors in games that 
were written for Jordan. His 
reported $33 million salary is 
probably more than the com- 
bined budgets of the two Euro- 
pean clubs opposing him. 

He was introduced to the 
same spotlight show that 
greets him back in Chicago. 

His name was chanted 
throughout the gym in an ac- 
cent that had little in common . 
with the U.S. Midwest He A 
dribbled between his legs, he « . 
rocked back and forth like a 
cobra and. in lieu of a dunk — 
he is 34, after all — drove the 
baseline, turned a hard right 
and with his back to the bas- 
ket (perhaps judging himself 
in the giant television screen 
on the far wall? No, of course 
not) he tossed up a blind re- 
verse lay-up. 

“It just happens," he Said. 


id I fol 

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Jmn-CIninojilH- Kahn/Rrulrrt 

Michael Jordan breaking past Olympiakos’s Dragan Tar lac on his way to the hoop. 



Japan Scries 

Yokult SwaBmre 1. Sethi Urn 0 


Sohu Lions 6. Yokult Swallows s. 10 Innings 
Series tied 1-1 


MBA Preseason 

Drtral IDS, AUotTtO W 
Ottondo 97. Miami Ss 
Indiana 89, Ulan 80 
Mdwoukrc 99. Minnesota 94 
LA Lakers 11a LA. CBppcra 85 
Deltas 99. PtoonbSA 
Washington 111 Denver 107 
SocramnNo 9ft Poittand 74 

Me mi 119. Nm Jersey 108 
Indiana 89. Utoh 88 
PtotadriptM 89. Golden State BA 
Son Antonw9& Houston 90 
Orlando 83. Detroit 77 
LA Latent 117, Cleveland 107 
Milwaukee 1 19. Boston 96 
Sacramento 9a Vancouver Bl 


NHL Standings 

wmraM caHRma 



















































W L T Pts 










Las Angeles 




























San Jose 

















■BAY'S, Meow 







W L T PtS 

N.Y. tstandm 


Tampa Bay 







nohtwlwt orvmoN 
W L T Pts 
A 3 0 13 

4 3 3 10 

4 3 3 10 

3 3 3 8 

3 4 3 4 

14 2 4 

First Parted: M-Oaraptwossc 1 (Brunet 
Bure), ft M Malakhov 2 (Rcochi, Bonldeuu) 
tool. 1 Mv Bateau 1 (MalaUtav, 
Damphoossel Sacand Parted: M- 
Ownphousse 2 (Brunei, Borc)5.M-Can«i2 
(Reart. Malakhov) (pp). Third Parted: B- 
Satan 4 (G tor*. Holzlngefl 6:14 top'- Shots 
M goal: M- 20-14-8—0. B- 6-9-7-22. 
GnoSo* M-TNbauft. B-Hasek. 

Now Janay 1 T 0 — I 

Ottawa B 3 1—4 

First Parted: Now Jersey, Maclean 7 
(GHntotir, Sykara) (pc). Second Period: New 
Jersey, McKay S (Halil Daneyfcol 3. O- 
Zhaltok 3 (Gardner, Ben Id ft Ottawa 

AlhMssan 1 (Kravchuk. Yashin) ft O 
AHredssoa 3 (Yasha McEachem) [pp). 
ThM Period: O-VOn Alien I. (en) Shots on 
goal: New Jersey 11 9-6-26. 0- 12-S-B-2S. 
Coafcto Nj.-Bmdcur. O- Rhodes. 

Ptmtangti 0 3 1-4 

Tempo hoy I 0 O—l 

Rrst Ported: Tampa Bay. Notion I 
(Renberg. HamrllU top). Sound Ported: 
Pittsburgh, Strafca 2 (Slegr. KasparaHfs) 
tool. 3, P-Fiunds 4 (Otaussoa Wereafca) 
(pp). ft P-Jagr 3 (Johansson, Fronds) ThH 
Potted: Pittsburgh, Johnson I (Jagr, 
Hatcher! (en). Suh on goal: P- 8-10-9-37. 
T- 8-7-7—22 Cooties: P-flanasso. T- 

SL Louts 8 2 0-2 

CMoagn • a 0—4 

First Potted: None. Second Parted: St. 

Louis. CouriraB 2 (DcmHra. Murphy) ft SX.- 
York 1 (Chase Poesdiek) TWrt Ported: 
None. Shotroa goal: S.L- 4-10-1 0-24. C- 10- 

6- 1 J— 7ft Co (rites: S.L-Fuhr. C-Terreri. 

Cotarodo 4 ■ 1 0—5 

Calgary 0 3 2 1-6 

First Parted: Cokmdo-Kfemin 2 (OzoBraty 
2 C-Ktaram 3 (Kamensky! ft C-Kamensky 4 
(Messier. Salad 4. C-Loaata I (YeOe 
tOemm) Second Potted: Calgary, Titov 1 
IHubft Onsets) (shift C-Manta 3 (ARmGiv 
F lawy) (sh). 7. C-Mdrmb 2 (Iginla) (sty. 
Ttetd Ported: Cotoroda SaJdc s (Fonbarg) 
(DPI- 9. C-Cosseis I (Flony, TltoV) (pp). 10, 
Calgary. Dingman 2 (Lgtnta Nytonder) (pp). 
Omtew 11. C -Nytonder 1 (Fleur* Hulse) 
*40. State aa goat C- 7-12-3-3— Z3. C- 9-10- 
13-3 — 35. Goafios; C-BBtogton. C-Tabaraod 
Rotasorv TabareccL 

Boston 1 8 1—2 

Vancouver 0 8 0-0 

FM Iteriod: B-Boarq ue 2 (Carter. AMsan) 
&06 (pn). Second Ported; Nona Third 
Potted: B-Donoto 5 (ABnon. Carter) &22 
(PP). Shots oa god; B- 964-30. V- 15-16 

7- 32 Cadies: B-Carey. V-McLean. 

PMn dotohi n 0 1 0-1 

LasAngotes 8 4 1— S 

First Parted: None. Second Patted: Los 
Angeles, Tsydakov 1 (Bloke. Stomped, ft 
LA-Stompri 5 (Robitafflc. GaOey) (pp). Los 
Angeles. Boucher 1 (Murray. Vagan ft 
PtrOodelpWa LcCknr 7 (NUntmaa) (pp). ft 
LA-Loperriere 1 (ODonneB, Bytsma) Thfrri 
Ported: Las Angeles. Blake I (CJatmsanJ 
Shots oa goat PMadetptoa 6-13-7—26. Los 
Angeles TS-7-7-29. Gaafia* P-Srww. LA- 

EAnoaton 8 10-1 

AnoMoi 1 0 l—a 

Rrst Ported: A- Van tape 1 (Plunger) 
Second Period: Edmonton. BLMhaaov ft 
1134. Third Ported: Anoheta, DAUranov 1 
(Seterm Todd) Shots aa goat E- 7-10- 
10-27. A- 7-9-7~Z3.OoteteKE-Esseraa.A- 

I llUUl. 

unmuri usbqi 
C m aB n o 0 8 2-2 

Detrelt l j 2-4 

First Potted: D-Koriov 5 (Lapointe) 
Second Parted: D-Udstam 4 (McCarty. 
Murphy) Third Period: D-Orapm-3 [House. 
Want) 2£0. ft D-McCorty 3 (Ymrnon. 
UdsSram) (pp). ft Gambia Oinaan 2 
(CWassonl 14ft. a Carolina Ranhtem 1 
(Leach. Leschyshpd Shots an gate: Carofina 

4-11-14-29. D- 1066-23. GotetaK 
CamBna Kidd. D-OsgootL Hadsoa 
TtanpnBny 0 8 0-8 

New Janay 2 3 1-6 

FIrri Parted: Now Jersey. Hafft 3 
(Andreychuk. McKay) (pp). ft NJ.-Thomas 
ft Saand Parted: New Jersey, McKay « 
( Ralston. KoOk} top)- ft NJ.^toipeoter 1 
(Odeteto. Mntejson) 9-.43. ThW Parted: New 
Jenay. Gibnow 1 . Shete on goah Tampa Bay 
10-96—27. NJ.- 10-12-7—29. Cndte*: T- 
Sdiwah. NJ.-Dunhon. 

WdsUngtan 2 8 1—3 

Montreal 1 0 1—2 

Fast Parted: Washington Simon 2 (WM. 
Bondra) 10:1 A (pp). ft M-Mansan 1 (Canorv 
Baidateau) (pp). 3. W-Bufls 2 (KoUg) 
5acond Period; Nam. Third Patted: M-Kaivu 
1 (OuhriaL Carson) ft W-MIBer 1 (Hunterv 
wm (sty. Shots on gaol: Washington 6-12- 
15—33. M- 14-10.1 5—39. Codas: W-KoUg. 

K.Y. Rangors 2 0 1-9 

SL Loots 3 8 2—5 

First Ported: New York. Graves 3 (Gretzky. 
Sandstrom) ft S.L-Murphy 1 (Campbell. 
Prongei] (pp). ft SL Laois. Courtntel 3 (Hall 
Madams) ft New York, La Fontaine 5 
(Savrad. Leatdi) (pp). ft SJL-Conrar 1 
(Bergevtn) (sty. Second Ported: Nam. Thhd 
Ported: 5-l_-Modnnte 5 (Murphy) 7, SL 
Louis. Murphy 2 (Mactates. HoD (pp)- & 
New Yarik LaFantatae 6 (Keane) 1858. 
Shots an goal: N.Y. Rargers 11-3-5-19. St. 
Louis 14-5-14 — 33. Goatee N.Y.-RkWer. 

DoUas 3 0 2-5 

Toronto 2 1 1—4 

Find Ptnod: D-Modano 7 (Sydor, 
LehHnen) 138. ft T-Simdla 1 (Sctmeider, 
Soflhna) (pp). X D-. LangenbnmiKr 3 
(Bassen, VeAeety ft O-Reld 2 (Cartoanaao. 
Zobov) 17:1* ft T-Gustofssan 1 (Johnson) 
Second Ported: T -Korolev 3 aehter. 
Pradtozka) (pp). Thhd Parted: T -Johnson 1 
(King. SChneWeri 347. ft CMtedana 8 
(Enay) MM.9. D-Hsddnr ft Ift-lft Sbotson 
goal: 0-15-7-6-28 T- 16-5-10— 2S. Coates: 
D-Bettovr. T-Pofrin. 

Boston 0 2 1— a 

Cotgory 0 g 0-0 

Find Ported: None. Socood Ported: B - 

ABban 3 (Cartel) ft B-. Bates 2 (Samsonov) 
Third Period: B-KhrisSch 4 (Cartac AiBson) 
1539. Shots, on gates B- 4-34— IS. C- 8-12- 
10—30- Goatee B-Dafoe. C-TabaraccL 


-.Memorable Moments from Johnnie Walker: KYDKK (IP icitli Honuml Calladw 

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Major College Scohes 

Army 37, Rutgora 35 
Brawn 23, Rhode Island 15 
Budmen 3ft Fardham 10 
Cornell 41, Lafayette 3ft 20T 
Dartmaatii 21, Ytee 7 
Harvard 5ft Ho(y Crass 24 
ANaml 4ft Boston Caflega 4ft 2OT 
Navy Aft VM1 7 
Perm 24. Catombla 7 
Perm SL 1& Minnesota 15 
Prtoceton 31. Colgale 28 
Syracuse 6ft Temple 7 
Aift-Ptae Bhrff22,Gromhang St 16 
Florida 2ft Auburn 10 
Florida St. 3ft Georgia Tedi a 
Georgia 3ft VtaderhOt 13 
Kentucky d®, NE Louisiana 14 
MissEsstepl3ft LSU 21 
N. Caro8na A*T 7, Morgan SL 6 
North Craoflna 2a N. Caroftna St 7 
Tennessee 3ft Alabama 21 
Virginia 13, Duke 10 
Wrtee Forest 3ft Maryland 17 
Kansas SL 3ft Tans A&M 1 7 
Mlrete. Ohio 4ft Mantrtel 31 
Michigan 2& Iowa 24 
Missouri 37. Texas 29 
Nebraska 39. Texas Tech 0 
North w estern 19. Michigan St 17 
Ohio SL 31, IndhuvO 
Purdue 4ft Wisconsin 30 
Southern Gal 2ft Nohe Dane 1 7 
Oklahoma 2ft Baylor 23 
South CoraBna 39, Arkansas 13 
Taha 3ft Terns Christian 22 

Artrona St 31. Stanford 14 
Brigham Young 1 7, Hawal 3 
Colorado 4ft Kansas 6 
Fresno SL 2ft Air Paras 17 
Oregon 31, Utah 13 
Rice 3ft New Maxico 23 
UCLA 3ft Oregon SL 10 
Wdstrtngtan 5ft Aiteona 28 
WbsWngten St Aft CaShrnla 37 

Top ZS Colueqe Result! 

Haw am top 39 ram In Tho AsmieteM 
Prewr adtego hmtate poh tend late watee 
No.1 Ptni State (MO beat Minnesota 16- 
1ft Next at Northwestern, Nov. 1. No.2Na- 
hrasto (648 beat Team Todi2WL Next at 
Kansas, Sahnday. Ns. 3 Florida State U-Q 
beat Na 21 Gemgta Tech. 3ML Nexh at »- 
gWa, Saturday. No. 4 Narib Condon (7-0) 
beat North CamBna Stole 20-7. Nad: at Ng,2l 
Georgia Tech, Oct 30. No. 5 Michigan ftMO 

beat No, 15 Iowa 28-24. N extol No. 12 Mk«- 
gan Shrift Saturday. 

No- 6 Aotem CM) tost to No. 7 Florida 24- 
ia Next at Artansat Saturday. No.7Horida 
(6-1) beat No. A Auburn 24-10. NoMtva.Na.19 
Georgia, Nmr. 1. N0.8 LSU (5-2) bat to Mb- 
ShteppI36-21. NeMtatKoteadcy. Nov.T.Ne.9 
Thmescw (5-1) beat Alabama Mai. Next 
«.SonlhCimin& No*. l.Na 10 Washington 
(5-1) beat Arizona 58-28. Next vs. Saohrem 
Cal Saturday. 

Nft 11 Ohte Slate (H) beat hxfiana 314. 
Next vt Northwestern Saturday. Ho. 12 
Middgta Shite (Ml tetfa Northwestern 19- 
17. Neit vs. Na 5 Michigan, Sahnday. No. 13 
WaddngtaB State {ftty beat CalBbrida 63-37. 
Nest vs. Aifsm Saturday. No. 14 Tbb 
A&M S-1) hat to No. 20 Kansas State 36-17. 
Next at Texas Teds Sataday. Na. 13 lawa 

C*-2) tost to Na 5 Michigan 38-24. Nea vs. 
Inflana Sahnday. 

No. 16 OMahnaa State (64) M not ptoy. 
Note vftMbMWl Saturday. No.17 UCLA (5- 
2) beat Oregon State 34-10. Next vs. Ctf- 
Fresno State 20-17. Next of Hawaii Satar- 
day. No. if Georgia (5-T) bed Vanderbat34> 
1ft Next vs. Kentucky, Saturday. No. 2a 
Kansas Slate CM) bed No. 14 Texas A&M 
36-17. Next at akfahoma Sahnday. 

N*. 21 Georgia Tech (4-2) tosMo Nft 4 
Ftartaa State 38-0. Nad: vs, N& 4 North Car- • 
oftia Od 30. No. 22 Vh^ete Ttch 0-1) dtd 
not play. Next at No. 23 'Hat Vlnjfnla, Sd- 
arday. No.23Tltest Vhgtota (8-1) <Sd notplay. 
Next vs. (to. 22 vriraWn Tech, Saturday. No. 
24 Wnsmto ((-2) tHhoPuidMiS^Ol Next 

atMtanesata Saturday. N*. 35 staitenl (43) 

to# to Arizona Slate 31-14 Next vft No. 17 
UCLA, Nov.1. 

CFL SrANomos 





ZimtKdMre: Z72-6 to 49 aves 
Kenya: 190 In 44.1 oven. . 

Zimbabwe leads 2-0 and wan Presidents' 
Cap in best-of-threenrios. 

miasBui vs. sonni juwka 

South Africa: 402 
Pakistan: 53-1 


World Cur 

Saturday, Isom VARssero bekoaho 

1. Laurent Jotabert Ft, ONCE 5tv 48 m. 45 s. 

2. Paolo LanfruncM, ftoty, MapH it. 

3. Francesco Cosogrande. Bafy, Soeca si 

4. Mlchete Bortrt, ftoty, Technogym at 3 5 

5. Paaia Vartoft Holy, Cantina Tolto at 1:07 

6. Axel Mada, Betohnn, Pant 130 

7. Andrea Tati, Italy, Mapri 131 

ft DavMe Rebenkv It, Franc, dee Jane 132 

9. Vkuflmlr Ben. ttotys, Bresdatat2£i 

10. Alessandro BeriaGnl Italy, Technogym 
»TWAX- STAMOtiraac 1 . Barfoa 290 points 

1 Ron Soreraea Denroaric, Robobar* 27ft 3. 
Taft 2A ft Rebeftn. Froneaha dtsJesx 23ft 
5. Jotabert 214j 6. Andrea Tehran Ufcmtne, 
Lotto 21 7t 7. Max Sdandri, Britain Fratmtae 
des Jeax 1 9ft ft Boat Zbag, Switzerland. Mer- 
“taw 14ft 9. After*) Effi. ttoty, Cnstan 12ft 
HLGiaatecDBortaiaRft ltat» Festtro 11s. 


Finri teams Sunday In 3B29JXX1 GoK DL 
gaxttouniaaioraMB,7Bl -yard, pap-71 Tbota 
Co«wy Ctoftcouree to Susono. Japan 

x-Brondt Jobe. U5. 684963-67—257 

Tara Suzuki Jap. 67-67-44-69-27 

MBsuo Horadft Jap. 7M7^S46-248 

K. Kawnbons Jap. 67-66-67-68-268 

S-Sugimata, Jap. 67-664649-268 

T.Yaneraraa Jap 6J46-71-7(WM9 

K.Fufadnri.Jop- - 65-714649-271 
M-Kawarmuu JegL 644945-70-272 

Man Warts. U5. 6MG474K-273 

SeWOfcudftJap 65- 7247-69— 273 

S-Sugimata, Jap. 67444469-268 

T.YtaeyoreaJap 6246-71-70-369 

K.Futa*ari.Jta. - 65-714640-271 
M-Kawarmuu Jep. 644945-70-272 

Man Warts. US. 6970474T-273 

SofldOfcudaJap 65-724749-273 

H^mMeshhftJap 6449-70-70-273 

x-wanone-hale playoff 


ItMIfy ui* 

Sweden (flZUA. (i)i 

South Africa CO 2, New Zealand (7) 1 


South Africa ft Sweden 1 



Aigenflnadft Romania 18 

France 3ft Italy 19 



Western Prmnneo 3ft Gauteng Uora 18 
Free State 4ft Natal 22 


W L TPte. PF PA 

15 2 0 30 622 284 

IT 5 0 22 425 460 

3 13 0 6 354 498 

2 14 0 4 324 497 

x-Edraanton 10 A 1 0 20 408 374 

X -Calgary 9 TO 0 18 476 434 

x-Bitf. Columbia 8 8 0 16 413 452 

Saskatchewan 7 9 0 14 382 405 

x<findwd ptayoff berth 

Saturday* R*xott 
Toronto 4& Calgary 17 • 


Toulouse ft Parts St Garanin 2 
Auxaire 2, Bastta 0 
Lens), Monaco 0 
Naites ft Olympiqiw Lyon 2 
Le Havre l.Rennesl 
MotdpeHer 1, Chateaaraur 0 
Strasbourg 1 Comes 0 
snuamaae PSG 27 potato,- Metz 2ft 
Bordeaux 2ft Maaeffle 2ft Lem 21: Monaco 
2ft Auxern ift-BcsSa 1ft Toulouse 1ft Lyon 
1 5r AtontaeBer 14f Gutagamp 1 4: Sbusbouig 
1 ft Nantes lft Chateau roux l h Rennes 1ft Le 
Havre ft- Cannes 7. 

Roda JC Kataade 1, VBesse Anttam I 
Heerenveen 1. Sparta Rotterdam 1 
NAC Breda ft RKC WbatarR 0 
Twente Ench. T, Graofschqp Doettadwai 1 
Fortuna SHtad ft Groningen l 
WHtam II TBbmg 2. Feyenoord 0 
NEC Nftnegen ft PSV EimBiaven 4 
mamma*: A|b Amsterdam 30 pabri* 
PSV Bodhcven 2ft Heerenveen 21; Feyeno- 
ord Zft Twente Enschede lft VReswi Arnhem 
lft Rada X Knfcrade 14t Sparta Rotterdam 
1« Graaftcteto DoeUnchani 1 ft Groningen 13> 
WRera D THwig lft NAC Breda 1ft Fortuna 
Utredrt ft VMendara ft W Maastricht 4. 

muiAH msr DMVHIOH 
Lazio a Atatanto Bergamo 2 
Napoli ft Inter MBan 2 
IhflneMft Etopa82 
Bresda ft Vicenza 0 
Ftarerttna ft AS Rama 0 
Sampdoda ft Pfacemnl 
srsxwwasi interlApotatsJuventuslft 
Itana lft Parma lUS cm pdoria 11; Bresda 
lft Ataluidu ift Udtaese lft Lazio ft VkEnza 
ft FkranftKi 7; Eatpafl 7; Milan ft- Bari As 
NapoB ft Botograft Lecce ft Piacenza 2. 

wtauuMt mcr MnnoH 
AlhtaficBinwjl. Deparitvo Coronal 
Zaragam L Alteflao Madrid 5 
Real Madrid a. Tenerife a. 
Canpaatela ft Banadona 2 
Merida 1, SatanxmcD 0 
Oriedo a Real Sodedad 5 
CeitaVfgo l, Vttenda 0 
Rodng S antand er a Moflataii 

KTAKDitease Barcelona 19 aaintE pm 
M adrid 17, ArteBco Madrid lft wXraU 
Ceita Vigo lft Real Sodednd IftSmSlft 

Bettor Ovtedoft 
Attnctfc BXbao ft Tenerife ft Campasteta 7 i 
Zg^ttra 7 ; Oeprefiva Coruna 7; Merida S 

vwma ft Sataaroocaft- valtadeu ft spart- 


Aston VOla l.vnrabtedon 2 
Btockbonil. Southampton 0 
oieteeal, Leicester 0 
Crystal Palace ft Arsmaio 
Dartzy 2, Manchester United 2 
Evertooft UvarpoolD 
WestHam ft Bottan 0 
Tottenham ft 5heBIeld Wednesday 2 

s™«a* Anenal 23 potato,- Btack- 
bum 22r Man United 2ft CWsSfiSM.. 


7 ! 

■tentMJUt BUNBBSima 

VfLBodwraftFCCreaBwl * 

Werte Bremen ft Hamburg 5V0 



I860 Munich ft VtL WaHibaig 1 

Haosa Rartock 4. Schatke 1 


tnummt pr "* i y |qn °cn 1 





Kazakstan 3. Untied Arab Emirates 0 
Uzbekistan 1, Sooth Korea 5 
sTAHDHUts: South Korea 1 6 potato; Untt-f 
ed Arab Emirates 7; Japan 6,- Kazakslan ft '• 
Uzbekistan 2. 




Nataalte Taazkit Fnnro del. Lba Ray- 
mond, U^.6-1 7-5. 

Lindscry Davenport (4), U^, def. Jana 
Novotna (2L Czech RepubBc, 64. 6-1. 


Dmrenport det Touziat 74 (7-3), 7-5, 



Karol Kucero TO, Slovakia def. Goran 
hranfsevfc Cft-Cioafla 6-ft retired. 

k^rra ftarraan (7), Sweden, def. Thomos 
Muster (4L Austria 6-7 (1-71, 6-ft 7-5. 


Kucora del Norman 6-2. retired. 



Bryai Black, Zimbabwe, def. Barts Bectato 
G«man* 74 (7-3), 6-7 (64), 64. 

A^S^ 8RnftdrtSCOttDra ^ 


Block deL Kuerten 64 6-7 (4-7), 62 , 34, 7- 

_. OUARtermNALB 

Ymgera’ Kaftontav Q), Ruacda def.Mare 
Goe*nec Germany 64 7-4. 

_ Phapousstx ( 7 ), Austrafia del 
Cedric PtaOna France, 63, 34 74 (74). 

__ . sacmALS 

^ ™^ 5 “riotaFrafKaitefPW^poussh 

Tortuny Haas. Germany, det KrtetaflwZ. 

„ . FWAL 

Santoro def. Haas 64. 64. 


**LS-Announcetl the reslgnattan of Greg 
M^. pwktenlandchirtexocuttve offlew 
of MLB Enterprises. 

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Bsf and LHP Chtto Ham-," 

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PAGE 17 



The Defector in the World Series 

Back on the Island, Cubans Cheer for Young Marlin Pitcher 

By Larry Rohter 

New York Times Service 

Ohio State’s Antonine Winfield (11 ) and Andy Katzenmoyer (45) double-teaming Indiana’s DeW^e Hogan. 

A Close Call for No. 1 Penn State 


CoapSrd tn C/m SufffFwm Dufutctm 

Curtis Enis’s fourth-quarter heroics 
t. spared Penn State the humiliation of 
what would have been one of the biggest 
upseo of the season. ^ 

His two touchdown runs, including a 
10-yard spurt with 3 minutes and 59 
seconds to go, capped a desperate come- 
back to give Penn State a 16-15 victory 
over Minnesota on Saturday at College 
Station, Pennsylvania. 

The narrow victory at home over an 

College Football Roundup 

unheralded opponent cou Id endanger the 
Nittany Lions' top ranking in the {rolls. 

- Adam Bailey kicked five field goals, 
a Big 10 conference record, to give 
Minnesota a 15-3 lead early in the final 

The Nittany Lions succeeded in their 
only sustained scoring drive on the sub- 
■ sequent series. They moved to the Min- 
nesota 25 with 10 minutes remaining, and 
the crowd of 96,953 came to its feet. 

An interference call on Craig Scruggs 
set up Penn State at the 6. On the next 
play, Enis hesitated, then picked a hole 
over right tackle for the score. Travis 
Forney's kick made it 15-10 Minnesota. 
.. __ Minnesota, which had mostly avoided 
riumkes for die first three quarters, self- 
destructed in the final rive minutes. The 
/tinning back Thomas Hamner fumbled 
and Chris Snyder fell on die ball to give 
Penn State possession at the 10. Enis 
bolted around right end to score and 
vault Penn State to a 16- 15 lead. 

"It was like a gift from God,” the 
Penn State linebacker Jim Nelson said. 
“You couldn’t think of a more perfect 
time for those things to happen. Some- 
. times championship teams get lucky. ' ' 

No. 2 Nebraska 29, T«xa> Itch O In 

Lincoln, Nebraska, Ahraan Green ran 
for 178 yards and a touchdown and the 
Comhuskers' defense. recorded its first 
shutout of the season. 

f Mo. 3 Florida Scat* 38, No. 21 Georgia 

hch o In Tallahassee. Florida, Thad 
Busby threw for 399 yards and three 
: touchdowns, and Travis Minor raced 27 
yards for a score, helping Florida State 
overcome a lethargic start. 

No. 4 North Carolina 20, North Car- 
olina Stat* 7 Brian Schmitz drilled a 51- 
yard field goal in a driving rainstorm 
midway through the third quarter to 
break a 7-7 tie and spark the Tar Heels 
(7-0) in Raleigh. North Carolina. 

No. 5 Michigan 28, No. 15 Iowa 24 In 

Ann Arbor, Michigan, Brian Griese, 
whose three first-half interceptions put 
Michigan (6-0) in a 21-7 hole, threw for 

three touchdowns and ran for another to 
lead the comeback. 

No. 7 Florida 24, No. 6 Auburn 10 Flor- 
ida, playing without its suspended quar- 
terback. Doug Johnson, used a smoth- 
ering defense to shut down host Auburn. 
The backup quarterback, Noah Brind- 
ise, passed for one touchdown and the 
wide receiver Jacquez Green scored 
three times for the Gators. 

Mississippi 36, No. B LSU 21 A week 
after upsetting then-No. 1 Florida, LSU 
lost at home to. Mississippi In Baron 
Rouge, Louisiana, John Avery ran for 
two touchdowns and Stewart Patridge 
passed for two in the Rebels' upseL 

No. 9 Toniwaso* 38, AUbama 21 

Peyton- Manning threw for 304 yards 
and three touchdowns to lead the Vol- 
unteers to victory in Bi rmingham , 

No. 10 Washington 58, Arizona 28 In 

Tucson, Arizona, Brock Huand passed 
for three touchdowns and Rashaan 
Shehee ran for two more for the 
Huskies, including a 62-yard breakaway 
in the third quarter. 

No. 11 Ohio Stata 31, Indiana 0 Mi- 
chael Wiley ran for one touchdown and 
threw for another and Ohio State's de- 
fense did not allow visiting Indiana in- 
side the Buckeye 30. 

Northwastam 19, No. 12 Michigan 

17 In Evanston, Illinois. Adrian 

Autry burned the nation's fourth-ranked 
rushing defense for 175 yards, and An- 
wawn Jones blocked a 28-yard field goal 
with 5 seconds left as the Wildcats dealt 
the Spartans their first loss this season. 

No.l 3 Washington Stato 63, California 

37 Ryan Leaf threw five touchdown 
passes and Michael Black scored three 
times as Washington State (6-0) scored 
IDs on its first six possessions in Pull- 
man, Washington. 

No. 20 Kansas State 36, No. 14 Toxas 

asm 17 In Manhattan, Kansas, Michael 
Bishop led three second-half scoring 
drives fueled by the running of Mike 

No. 17 UCLA 34, Oragon Stata 10 Cade 
McNown shrugged off a woeful start as 
the Bruins, playing in Pasadena, Cali- 
fornia. extended their w innin g streak to 
five games. 

Frosno Stato 20, No. 18 Air Faroe 17 

Jeff Hanna's career-long 51-yard field 
goal broke a fourth-quarter tie at the Air 
Force Academy in Colorado. 

Plndue 45, No. 24 Wisconsin 20 In 

West Lafayette, Indiana. Ed Watson ran 
for three touchdowns and Billy Dicken 
threw for three as Purdue won its fifth 

Arizona State 31, No. 25 Stanford 14 

Jeff Paulk had a pair of 2-yard scoring 
runs and the visiting Arizona State de- 
fense forced five turnovers. ( NYT.AP ) 

H AVANA — Orlando Hernandez 
was relaxing in his living room 
last Sunday evening when a 
neighbor burst into his small house near 
the airport here, excited and agitated. 

"Your brother just went nine innin g s 
against the Braves and struck out 15 
batters,” be announced, and Hernandez 
jumped from his chair and exchanged 
high-fives with the bearer of the glad 

Ever since that news began spread- 
ing, Cubans have been exulting in the 
exploits of Livan Hernandez, the 22- 
y ear-old rookie pitcher who defected 
from the Cuban national team two years 
ago and was named die starter for the 
Florida Marlins in Game 1 of the World 
Series Saturday night against the Clev- 
eland Indians in Miami. 

Relations with the United States may 
be as bad as ever, but Cubans are pas- 
sionate baseball fans, and they are awed 
by his achievement. 

"You can drive from here to San- 
tiago” at the extreme eastern end of 
Cuba, "stop at every farm along the 
way, and every peasant in the fields is 
going to know what Livan did." one fan 
said here at the downtown Central Park, 
where fan* gather to talk baseball. 

“This is the week they are burying Cbe 
Guevara,” he said, referring to the 1960s 
revolutionary. "But in their homes, at the 
beach, on the bus, in bars, people are 
talking about Livan, Livan, Livan.” 

But therein lies the quandary that 
Hernandez's sudden prominence has 
created for the Cuban government. 

Though clearly the product of a sys- 
tem that has enabled the Cuban national 
team to win gold medals at the Olympics 
and scores of international tournaments, 
the pitcher chose to mm his back on that 
system and embrace the capitalist world 
of sprats for profit, a notion that is ana- 
thema to Fidel Castro and the communist 
state he has dominated since 1959. 

Since 1991, more than a dozen Cuban 
baseball players, some of them promising 
prospects, others established stars, have 
defected to the United States. All have 
made more money there than they could 
have ever hoped to here, where even star 
players earn less than $20 a month. All 
are regarded by the government as trait- 
ors to the Cuban Revolution. 

As a result, neither state television 
and radio nor the government-controlled 
press have yet said a word about Hernan- 
dez's feat last Sunday, his 1.23 eamed- 
run average in the postseason, or the fact 
that he was voted most valuable player 
in the National League Championship 
Series after accounting for two of the 

Marlins’ four victories over the Braves 
— and thus becoming the only pitcher in 
the league this season to gain victories 
over the Atlanta stars Greg Maddux and 
John Smoltz. But ordinary Cubans are 
not ignorant of his accomplishments. In 
the regular season, he won nine games 
and lost three, with an ERA of 3.1 8. 

“Livan has demonstrated the high 
quality of Cuban baseball, that our best 
players can compete and succeed spec- 
tacularly at the highest level of play.” 
said Roman Garcia, 46. a chauffeur who 
frequents the Central Park. “So how can 
we not be proud of him?” 

Some fans learned of his performance 
last week via the Voice of America's 
Radio Marti, while others tuned into the 
game on the Miami radio station 
WCMQ, which 'broadcasts Marlins 
games in Spanish and. is audible here 
when weather conditions are right. Satel- 
lite dishes are prohibited in Cuba, but for 
S150, a flourishing black market allows 
fans of American baseball to pirate sig- 
nals from hotel cable systems, which 
include U.S. sports satellite stations. 

Perhaps more than anyone else in 
Cuba, Orlando Hernandez has reason to 
take pride in his younger brother's 
overnight success in the major leagues. 
After all. when they were little boys, he 
was the one who taught Livan how to 
pitch and encouraged him to follow in 
the footsteps of their father, Aroaldo. 
himself a former star pitcher, and even 
now. Orlando still counsels his brother. 

"The morning after the Marlins fin- 
ished off the Braves, the two of them 
were on the phone, and Orlando was 
giving Livan advice." the elder broth- 
er’s girlfriend. Noris Bosch Rifa. said. 

Bui Orlando, known as El Duque 
here, may also have more cause than 
anyone in Cuba to regret the con- 
sequences of his brother's move to the 
United States. Until recently, he was the 
ace of the pitching staff of Cuba's na- 
tional team, with a career record of 127- 
49. enough to give him the highest win- 
ning percentage ( .722) of any pitcher in 
the history of the Cuban league. 

“I know it is hard for you to believe, 
but as good as Livan is, Duque is even 
better, and everyone in Cuba will tell you 
that,” said Diosvel Rojas, 28. a surveyor 
who is a regular at Central Park. "He has 
been the rock of our pitching rotation 
throughout this decade.” 

But last year Orlando Hernandez was 
expelled from the national team and sus- 
pended for life from Cuban baseball. The 
action was taken after the lanky 28-year- 
old was accused of meeting with a cousin 
of Joe Cubas, the Miami-based sports 
agent who arranged Livan Hernandez's 
defection and negotiated his four-year, 
$4.5 million contract with the Marlins. 


Livan Hernandez. 22, the Marlins* 
starter in Game 1 of the Series. 

Orlando Hernandez does not deny 
having been in contact with Cu has ’s as- 
sociate. who was arrested in 1996 and is 
now serving a 15-year prison term here 
for "assisting illegal departure.” but he 
has emphasized that he was not intending 
to defect. They met. he said, only because 
Livan had sent his older brother clothing, 
sports equipment, cash and some medi- 
cine he needed for his two daughters. 

So while Livan Hernandez has been 
mowing down batters and enjoying the 
material benefits of his contract. Or- 
lando now works as a physical therapist 
at a psychiatric hospital here at a salary 
of $8 a month. The unly baseball he 
plays is a sandlot game every weekend, 
when he joins his friends from the old 
neighborhood for softball. 

“We throw a few pesos into a pot. and 
the winning team splits it up,” said 
Rigobeno Sari be Zamora. 24. a friend 
and neighbor of Orlando Hernandez. “Of 
course, we never let Duque pitch. We 
make him play second or third base." 

Hernandez has appealed the suspen- 
sion and remains hopeful he will even- 
tually be allowed to rejoin the national 

"Every morning, he gels up and runs 
and works out,” said Miss Bosch. "He 
is depressed, but playing Uiseball is 
what he likes to do. and that's why he 
continues to train.’' 

So no matter how Livan Hernandez 
performed Saturday night, Orlando 
Hernandez intended to get up early Sun- 
day morning and make his way to a run- 
down diamond near Lenin Park. There 
he will pound his glove, shout encour- 
agement to his teammates and try to 
concentrate on the game going on in 
front of him, and not the one that was 
played in Miami. 

Dartmouth Wins 22d Straight 

Neat' York Times Sen-ice 

When the Dartmouth players 
boarded their buses, at Hanover, New 
Hampshire, for the' 180-mile trip to 
their game in New Haven, Connecti- 
cut, against Yale, there were no 
bunches of students around to cheer. 

Yet this is the team with the longest 
unbeaten streak in college football. 22 
games after a 21-7 victoiy Saturday 
over Yale. 

This success is not lost on the 4,000 
undergraduates. But demonstration of 
athletic prowess is deemed uncouth if 
not uncool these days at Dartmouth and 
similar colleges. Ivy or non-Ivy, to the 
dismay of the older grads. Last year's 
team, a remarkable one, attracted only 
36,000 spectators to five home games. 

Peter Sellers, the Dartmouth quar- 
terback, completed 14 of 22 passes for 
198 yards, ran for one score and threw 
for another. The victoiy was Dart- 
mouth's 15th in a row and extended its 
unbeaten streak to 22 games (21-0-1). 

Paitn 24, Cobimfiia 7 Jim Finn, a 

Penn running back, fumbled on 
Columbia’s 2-yard line in the first 
quarter. Three plays later Finn, in- 
tercepted a pass and returned it 18 
yards for a touchdown that started 
visiting Penn on the way to victory. 

Harvard 52, Holy Cross 24 Chris 
Menick, a sophomore, rushed for 261 
yards — second most in school history 
— and three touchdowns, while the 
sophomore quarterback Rich Linden 
scored three touchdowns as the Crim- 
son whipped visiting Holy Cross. 

Brown 23, fUmde Island 1 5 Despite a 
separated throwing shoulder. James 
Perry, the Brown quarterback, threw 
for 251 yards and one touchdown as 
Brown beat Rhode Island to win the 
Governor’s Cup. 

P ri n cet on 31, Colgate 28 After 
throwing an interception that gave 
Colgate a late lead. Hairy Nakielny, 
the Princeton quarterback, tossed a 5- 
yard pass to Ken Nevarez with 1:03 
left to lift Princeton to victory in 
Hamilton, New York. 

■ s . . j, . . . - 

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;r ■''”'4 

» • 

Red Wings Blow Back Hurricanes, 4-2 

The As wi tiled Press 

Nicklas Lidsrrom continued 
his strong start this season with 
a goal and an assist, and Chris 
.Osgood stopped 25 shots be- 
fore leaving with an injury as 
.the Detroit Red Wings beat the 
Carolina Hurricanes, 4-2. 

" Osgood stopped every shot 
he faced Saturday, the last a 

; NHL Roundup 

slap shot by Steve Leach that 
hit him in the mask, cut him 
and left him sprawled face- 
down on the ice. He was 
. helped off with 6:39 to play 
mum replaced by Kevin Hod- 
son, who allowed meaning- 
less goals by Kevin Dineen 
and Paul Ranhehn for Car- 
olina ( 1 - 6 - 2 ). 

The victory was Detroit’s 
eighth in its last nine home 
ipmes against the former 
Whalers, who are now the 
Hurricanes, with the ninth 
game ending in a tie. Hartford 
last won in Detroit on Nov. 

Udstrom leads the Red 
Wings (6- 1-1 ) in scoring with 
four gnak and eight assists, 
aod has a goal in each of De- 
troit’s last three games. 

D*vS*5, Lightning o In East 
Rutherford. New Jersey, 
Mike Dunham made 27 saves 
in his first start of the season, 
nod New Jersey got goals 
. from five players in beating 
Tmnpa Bay. 

’ Bobby Holik, Steve 
Thomas. Randy McKay, Bob 
Carpenter and Doug Gilmour 

all scored as New Jersey had 
its best offensive game of the 

Capitols 3, Canadians 2 

Kelly Miller scored a short- 
handed goal with 2:15 left in 
the third period to lead streak- 
ing Washington over host 

Miller’s first shot was 
blocked by Andy Moog, but 
he knocked Dale Hunter’s re- 
bound into the net. 

Montreal's Saku Koivu 
had tied the game at 7:44 of 
the third period with his first 
goal of the season. Koivu 
stopped in the high slot, faked 
a p»« and fired a low shot 
past Olaf Kolzig. 

The Capitals, off to their 
best start ever at 7-1-0, have 
beaten the Canadiens in their 
last six meetings since March 
27. 1996. 

Stars 5, Utopia Loaf* 4 in 

Toronto, Deri an Hatcher and 
Mike Modano scored third- 
period goals to lift Dallas over 
the Maple Leafs. 

Modano’s shorthanded 
goal, his league-leading 
eighth and second in the 
came, pulled the Stars even 
midway in the third period 
and set the stage for Hatcher s 
winning shot at 15:12. Jamie 
Langehbranner and Dave Ke- 
id also scored for Dallas. 

Mike Johnson. Mats Sund- 
in. Per Gustaffson and Igor 
Korolev scored for the Maple 
Leafs, who rallied from a 3-1 
first-period deficit. 

Blii*s 5, Hangars 3 Joe 
Murphy scored his first two 

goals and added an assist as 
St. Louis beat (he visiting 
Rangers fra: their seventh 
straight victory. 

A1 Maclnnis had a goal and 
two assists and Geoff Court- 
nail and Craig Conroy also 
scored for the Blues, who at 7- 
1-0 are off to the best start in 
team history. 

The winning streak tied a 
club record. St Louis has won 
seven in a row twice before, 
the last time in the 1990-1991 

Pat LaFontaine scored 
twice and Adam Graves once 
for New York, and Wayne 
Gretzky recorded his 1,849th 
assist Gretzky is .one assist 
away from tying Gordie 
Howe’s total point mark, 
which would give him more 
assists than any other players’ 

point total in National 
Hockey League history. 

Bruins 3, Flames O Byron 
Dafoe made 30 saves as Bos- 
ton extended its winning 
streak to four games with a 
victoiy over the Flames in 
Calgary, Alberta. 

All four victories have 
come on the road as die Bru- 
ins near the end of an eight- 
game trip (5-2-0). 

It was Boston’s third 
shutout of the season — all on 
this road trip — with the other 
two coqiing by Jim Carey 
against Vancouver and Ana- 

S coring the goals for the 
Bruins were Jason Allison, 
Shawn Bates, and Dmitri 
Khristich. Boston (6-3-0) fin- 
ishes up the road trip Tuesday 
in Edmonton. 

•• v 

Greg Rusedski is She'. fhxmtitttt; 

can he pick up his '...-.i:''.-' , . 


20 - 26 October, LIVE, 

The Eurocard Open, 

All of the workfs top 20 players 
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22 - 24 October, LIVE, 
UEFA Cup and Cup 
Winners’ Cup 

Athletieo Madrid take on PAOK 
Salonfta while Ajax, Inter Milan 
and Betis Seville are also 


24 - 26 October, LIVE, 

The Alpine Ski 

World Cup, THptes 

The Men's and Women's Alpine 
Ski World Cup season get 
underway in the French Alps 
starting with a parallel slalom 
and a giant slalom 

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Belgium, Luxembourg 
or Sweden ? 

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Austria 01891363830 
Belgium 0800 17538 (toll-free) 
Luxembourg 0800 2703 (toll-free) 

Sweden 020 797039 (toll-free). 


the ooRLtrs nun nkosweb 

Motor racing 

26 October, LIVE, NASCAR, 
Rockingham, USA 
The 31 at leg of the Winston Cup 
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PAGE 18 


R ]«(»iDAY, OCTOBER 20, 11 

World Roundup 

Alou’s 3-Run Homer Powers Marlins to 

Kucera’s Casualties 

TENNIS Karol Kucera, a Slovak, 
won the Czech Open in Ostrava on 
Sunday when Magnus Norman 
was forced to quit through injury 
after losing the first set Twenty- 
four hours earlier, Kucera's semi- 
final opponent, Goran Ivanisevic, 
retired after the first set because of 
a shoulder injury. 

Norman came into die final 
nursing a thigh muscle injury and 
never looked comfortable. 

• Lindsay Davenport collected 
her fifth tide of the season — but 
the first outside the United States 
— with a victory Sunday over 
Nathalie Tauziat m the European 
indoor championships in Zurich. 
Davenport pounded out a 7-6 (7-3) 
7-5 victory over her French op- 

• Fabrice Santoro of France beat 

Tommy Haas of Germany. 6-4. 6- 
4, in Lyon to win his first ATP 
Tour title. (Reuters) 

V- .. ..... -• 7.; 

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Lindsay Davenport heading for 
victory over Nathalie Tauziat. 

Els Tames Haeggman 

golf South Africa beat Sweden 
2-1 Sunday to win the Dunhifi Cup 
at SL Andrews, Scotland. In die 
deciding match. Ernie Els took a 
two-shot lead on the first three 
holes against Joakim Haeggman 
and went on to shoot a 69 and win 
by three strokes. 

Retief Gooses of South Africa, 
who won all his five matches in the 
tournament, shot a 70 to beat Jesper 
Parnevik by four. Per-Ulrik Johans- 
son scored 71 to beat David Frost, 
the South African captain, by three 

In the morning. South Africa de- 
feated New Zealand 2-1, while 
Haeggman equaled a golf record as 
Sweden eliminated die United 
Stares 2-1. Haeggman hit a record- 
tying 27 on the front nine to take a 
1 0-stroke lead over Justin Leonard. 
Haeggman finished with a 68 for a 
four-stroke victory. (Reuters) 

Jets Strike Back to Beat Patriots, 24-19 

The Associated Press 

The New York Jets won their rematch 
against the New England Patriots, the 
team coach Bill Parcells led to the 
American Football Conference cham- 
pionship a year ago. 

This time Parcells, now New York’s 
coach, turned to his backup quarterback, 
Glenn Foley, in die second half Sunday, 

longest play of the season for the Pat- 
riots (5-2), and it led to Ben Coates’s 8- 
yard scoring catch. 

But die Jets (5-3) came right back, 
sparked by Foley. Inserted to start the 
second half for an ineffective Neil 
O’Donnell (6-for-14 for 59 yards), Fo- 
ley guided New York 74 yards to a 1- 
yard TD ran by Leon Johnson. 

The Patriots responded immediately 
as Brown continued getting open, first 
for a 22-yard gain, then for a 23-yard 
score that put diem ahead, 19-10. 

That just fired up Foley and the Jets, 
who marched 59 and 76 yards for TDs to 
take the lead. Foley, a star at Boston 
College, at one point completed 14 
straight passes. The TDs came on Ad- 
rian Murrell’s 5-yard run and a 5-yard 
pass to Lorenzo Neal, who touched the 
ball for the first time all season when he 

Bacher Misses Century 

cricket Adam Bacher of South 
Africa missed his first century by 
just four runs Sunday as South 
Africa reached 402 in its first in- 
nings on the third day of the second 
test against Pakistan in Sheikhupura. 
Pakistan had reached 53 for one 
wicker in its first innings when poor 
light halted play. (Reuters) 

and Foley led the Jets to three much- 
downs ami a 24-19 victory over visiting 
New England. 

Foley went 17-for-23 for 200 yards 
and a touchdown as the Jets reversed a 
27-24 overtime defeat at Foxboro Sta- 
dium. in the much-hyped return to New 
England for Parcells. This matchup 
didn't have the fanfare, but it bad just as 
much action. 

New England, leading 5-3, got going 
quickly in the second half on a 6/-yard 
pass play to Troy Brown. It was the 

caught the pass in the flat and tumbled 
into the end zone. 

into the end zone. 

The Patriots got to die New York 37. 
where the Jets defense, ted by Mo JLewis, 

stiffened. Foley then brought the Jets 
deep into New F.n glanri territory, but 
John Hall missed a 36-yard field goal 

SMtanrics 17, Rama 9 Warren Moon 
passed for 261 yards and led Seattle on 
an eight-minute drive for the clinching 
touchdown in a victory over Sl Louis. 
Moon, in the lineup because starter John 
Friesz broke a thumb in die season 
opener, was intercepted twice in the first 
half, but St Louis turned them into only 
three points. 

Moon hit 12 of his fust 14 passes and 
ended up 24-fbr-36. Joey Galloway, 
back from an ankle injury, caught eight 
passes for 75 yards. 

The Seahawks (4-3) have won four of 
their last five heading into a stretch of 
three consecutive games against AFC 
West opponents. 

Other games: Philadelphia Eagles 13, 
Arizona Cardinals 10; Carolina Panthers 
13, New Orleans Saints 0; Dallas Cow- 
boys 26, Jacksonville Jaguars 22; San 
Francisco 49exs 35, Atlanta Falcons 28. 

Juventus Crushes Bari; AC Milan Loses 

A Kick for Women 

FOOTBALL Liz Heaston. a soccer 
player turned place-kicker at Wil- 
lamette University in Oregon, be- 
came the first woman to play in a 
college football game. She kicked 
two extra Mints as the Bearcats beat 
Linfteld College, 27-0. 

Hcaston arrived at the stadium 
late in the first quarter after playing 
in a soccer game. She kicked her 
first point after the Bearcats' 
second touchdown just before half- 

Her playing was technically il- 
legal because she was wearing her 
soccer cleats, which the ratebook 
says are too long for football. 

Hawkins later said she had suited 
up far her first and lost game. (AP) 


Juventus. the Italian champion, shot 
out Bari, 5-0. on Sunday to keep pace 
with the Serie A leader Inter Milan, bat 
AC Milan lost at home to Lecce. 2-1. 

Juventus is second, two points behind 
Inter. It had to fight fra- 45 minutes 

Barcelona loses ground. Page 16 

before finally going ahead as Klaus ta- 
gesson. a midfielder for Bari, putthe ball 
in his own net just before hairtime. 

After Bari lost Neqrouz, a Moroccan 
defender, for a second yellow card in the 
55th minute, Juventus struck three times 
with goals by Zinedine Zidane. Aless- 
andro Del Piero and got another gift as a 
Bari player again put the ball into his 
own net 

AC Milan’s awful start to the season 

ahead as Klaus In- 
for Bari, putthe ball 

continued with a nightmarish first five 
minutes in San Siro Stadium. Dejan 
Govedarica put Lecce ahead on a header 
in the second minute and seconds later 
Milan's Dejan S&vicevk was ejected for 
apparently elbowing an opponent, al- 
though a replay showed there had been 
no contact Lecce coaverted a penalty 
just before halftime. Milan's consolation 
was a goal Lecce put into its own net 

Unbeaten Inter Milan chalked up its 
10th victory in 11 matches this season, 
winning at struggling Napoli on Sat- 
urday. 2-0. But Ronaldo and Youri 
Djorkarff, who have contributed 13 
goals this season, limped from the field 
at the final whistle. Both may miss 
Inter’s UEFA Cup match on Tuesday 
against Lyon. 

England Tottenham Hotspur held off 
a late challenge from Sheffield Wednes- 

day to win. 3-2, in the Premier League on 

Sunday. Jose Dominguez, opened the 
scoring in the sixth minute when his 30- 
meter shot squeezed under Kevin Press- 
man, Wednesday’s goalkeeper. 

Chris Armstrong added to tiie lead in 
the 40th minute, and David Ginola 
swept in a curling left-foot goal from the 
edge of the penalty area just before 
halftime. Wayne Collins scored for 
Wednesday after 7 1 minutes and put the 
- Spurs in a sweat until Paolo Di Canio 
made it 3-2. 

Manchester United, the English 
champion, fought back to salvage a 2-2 
tie Saturday at Derby. United traded, 2- 
0, after 39 minutes. Teddy Sberingham 
missed a first-half penalty but scored 
with a header in the 51st minute. Andy 
Cole drilled in the tying goal six minutes 
from the end of regulation time 
Francesco Baiano and Paulo Wanchope 
scored for Derby. 

;V ■ 

.nil* 1 


By Murray Chass 

New York Times Service 

MIAMI — With one swing in the first 
World Series game the Florida Marlins 
ever played, Moises Alou outperformed 
his lather and two ancles. 

In a total of 82 times at bat in five 
World Series, the older generation of 
baseball’s Alou dynasty from the Dom- 


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Playing in his first World Senes 
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run in the fourth timing that shattered a 
1-1 tic »nd propelled the Marlins to a 7- 
4 victory over the Cleveland India ns. 

T .jy »n Rtyna iwteg, who defected from 
Cuba only two years ago, gained the 
victory as the youngest pitcher, at age 
22, to start a World Series opener since 
1970. Hernandez did not finish the sixth 
inning, giving up home runs to Manny 
Ramirez and Jim Thome. 

Orel Hershiser, at 39 going on twice 
Hernandez’s age, emerged with an un- 
usual infriat next to his name. The “L" 
fra- losing pitcher was only. Hershiser "s 
second in five World Series starts and 17 
postseason starts. Even more ignomini- 
ousty, Hershiser tied a World Series 
record by giving up seven earned runs. 
He did not survive the fifth timing. 

Alou’s game-breaking home run fol- 
lowed a walk to Bobby Bonilla and 
Darren Daulton’s infield single. 

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be near home, stay in the National 
League," Alou said. “I’m very happy. 
I’m very thankful it happened my first 
year. ‘Everything turned out to be good 
for me. I'm in the World Series, I’m 
close to the Dominican, and I’m still in 
the National League." 

No other family has produced three 
sous who have played in the World 
Series. Felipe played in it in 1962, his 
brother Matty in 1962 and 1972 and 
their brother Jesus in 1973 and 1974. 
Collectively, they hit .183 and drove in 
five runs. Felipe, now the Montreal Ex- 
pos’ manager, was not present Saturday 
night to see his son outshine them. 

series with an 1 1 th-inning borne nm. 

Roberts did not score after his seco^ u 
double, in the third inning, whickiefl 
the Marlins in position to tie the gamey’ f1 • 
with a run in their half of the third. €raH rtJJ ; 
Counsel! ted off with a double, HemaSr 
dez sacrificed him to third, and Edgar 

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night to see his son outshine them. 
^Moises said he wanted to ask his 

. father to come to the games, but before 
he bad a chance, his dad called him. 

“He called me Thursday and said he 
was going to go home, going to the 
Dominican,” Alou said. “I don’t know 
if he would have come to any games, 
because he like* to go fishing a lot. and 
he likes to go to bed early." . 

Tire fans who did watch the game 
numbered 67,245, the largest atten- 
dance for a World Series game since 
69,000 saw Game i in 1963 between the 
Los Angeles Dodgesrs and the New York 
Yankees at Yankee Stadium. 

Four pitches after Alou hit the left- 
field foul pole with his home run, 
Charles Johnson connected and 
launched another home run into the up- 
per deck in left field. 

The Indians scored first, getting a run 
off Hernandez in tire first inning on a 
leadoff double by Bip Roberts, a sacrifice 
and a single by David Justice. Roberts 

also rapped a double in the third inning, 
making Cleveland’s manager, Mike Har- 
grove, look prescient. Hargrove had 
chosen Robots ahead of Tony Fernan- 
dez, who won tire American League 

Renteria sent him home with a weak; ' '**- : 
ground ball to first • • . ; ; ‘-'V m 

Alou dissolved the tie, and Jofanaao 
made his 438-foot contribution before^ .... 

Manny Ramirez countered with a&o» 
out, bases-empty home run agpsu-- 
Heroandez in tire fifth, his eighth post- 
season home run. That left tire Martins . 
ahead 5-2. 

Florida’s Jeff Conine. who replaced . 

Daul ton at first base in the fifth ummg - • 
singled home a run in the bottom half tjf : 
the fifth, knocking out Hershiser, whose 
World Series earned-nm average soared ‘ 
from 1.69 to 3.22. Bonilla scored later® . . 
the inning on a wild pitch by relievp--' 

Jeff Judea. ^j-’- 

“I wasn't any more nervous than am . . 

other game," Hernandez said through .• . 
an interpreter. “I felt fine. The onfir. ... 
problem tonight was that I only had hfi. .. 
fastball working. My breaking bqt '' . 
wasn’t there tomghL" 

When he -came off in the siXtii,'. . 

Hernandez threw a brief dugout tantrum 
after waBang off the field. V ' 

“Idid get a little angry today became 
we’re down to the last few games of the ~ 
season," he said. “I got behind a fev 
batters. I showed emotion. I was aogrt.' 
at myself." 

“1 have no problem witii that as langa&V ' ' 

it’s for the right reason." said Jim WP' 
land, the Marlins manager. “Fortunsfiy; ~ 
we don’t understand one another." - x ; 

Cuban defector in World Series. Page 

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