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Hcralb 


INTERNATIONAL 


/.-•-.., - [\V\ 

The World's Daily New/pam-r 



eribun^ 


PUBLISHED WITH THE NEW YORK TIMES AND THE WASHINGTON POST 



’ Paris, Friday, October 24, 1997 



No. 35,660 


hg Plunge Drags Down World Stocks 

A Danger of Ethnic Tensions 


Asian Tempest Hits Hong Kong Hang Seng index 


Southeast Asian Governments Look Vulnerable 


By Michael Richardson 

International Herald Tribune 


SINGAPORE — For almost a geo- 
. eration. Southeast Asian governments 
have been able to rely on rapid eco~ 

norruc growth to smooth over ethnic and 

religious tensions among their popu- 
lations, and defuse public criticism over 
any allegations of corruption, misman- 

• agement or abuses of power. 

But officials and analysts in tbe re- 

• gion say that a looming economic slow 

NEWS ANALYSIS 

down following major falls in the value 
. 'of local currencies and stocks, and the 
spending cutbacks and rising unem- 
ployment and hardship that are only just 
starting to bite, will make the task of 

S atirical management much more dif- 
culL 

“ If the increasingly gloomy forecasts 
we are getting now about a severe slow- 


down in the region over the next few 
years turn out to be correct, then the 
leeway in public tolerance may be lost," 
an Asian diplomat said Thursday. “I am 
not suggesting that we have a potential 
Balkans in Southeast Asia, but the fal- 
lout from shrinking growth will 
severely test the region's political lead- 
ership and structure." 

Countries likely to be most severely 
affected include T hailand, Indonesia 
and the Philippines because all face 
critical elections in tbe next 12 
months. 

William Overholt, bead of economic 
research at Bankers Trust Co. in Hong 
Kong, said that the Southeast Asian 
countries hit hardest by economic and 
financial problems would have to brace 
for months of austerity and much more 
demanding investors. 

The path to recovery, be said, must 
include "severe austerity," while in- 

See REGION, Page 7 


July 2 Thailand bows 
to market pressure 
and devalues its 
currency 


Aug. 11 IMF agrees to $17 billion rescue 
plan for Thafland 

Aug. 14 Indonesia lets rupiah float 

— Sept 3 Shares rebound 7% in 
Hong Kong and Indonesia, 
but fell 5.6% in Malaysia. 



Already Tumbling, Exchange 
Watches $29.3 Billion Vanish 


By Philip Segal 

Specuri if the Herald Tribune 


Sourttt Btoondxrg Financial Markets 


Ineniuiooal Hcraid Ttifcwe 


Crisis Threatens a Region, hut Not the System 


By Alan Friedman 

International Herald Tribune 



PARIS — Nearly four months after 
Thailand's currency crumbled. East 
Asia’s financial crisis has now moved 
, decisively into an even more contagious 
phase, one that has put the Hong Koqg 
dollar, long a haven of Asian wealth, 
under siege amid a flight of investment 
capital from the region. 

The real danger now, specialists say, 
is not so much a threat to the world 
financial system as it is the risk of 
increasingly severe economic hardship 
and banking woes in a number of in- 
dividual countries in East Asia. . 

Jean-Michel Severino, the World 
'Bank’s vice-president for East Asia and 
the Pacific, said that despite a collateral 
i impact on European stock prices, he did 
( not believe the Asian crisis would de- 
: generate into a threat to the global fi- 
nancial system. 

“I would be a bit surprised if the crisis 
were to sjHead all over the world be- 
cause East Asia does not represent a 


significant enough share of the global 
economy to cause a systemic risk, mean- 
ing to jeopardize die profits of major 
i around the world or to affect 
economic growth or the world 


wor 

h flnlrin c 


Mr. Severino said. 


lg system. 

But Mr. Severino and other officials 
agreed that the Asian crisis could cause 
more economic hardship for individual 

NEWSANALYSIS 

countries in the region. He warned that 
"the only way to avoid more hardship 
was for East Asian economies to react 
very quickly and to deepen efforts at 
financial-sector reform.” 

The World Bank official said tbe com- 
petitive devaluations of other c urrenci es 
in the region had ‘ ‘put pressure on Hong 
Kong’s competitiveness,” helping to 
explain why die Hong Kong dollar was 
underpressure. He added that for China, 
"the devaluation of other currencies in 
die region is a problem because it could 
hurt Chine se exports, which are driving 
die economy’s strong growth rate.” 


Japan, meanwhile, which has signif- 
icant investments, hank lending, and ex- 
ports to East Asia, "could be affected." 

Phase one of the Asian crisis began 
last summer, when Thailand was forced 
to devalue its currency and had to ask 
the International Monetary Fund for a 
$17.2 billion bailout Between July and 
early this month the currencies and 
equity markets of the “tiger econo- 
mies" of Thailand, Malaysia, Indonesia 
and the Philippines slumped repeatedly. 
The Philippines and, more recently, In- 
donesia both turned to the IMF for help, 
while well-managed economies such as 
Hong Kong’s and Taiwan’s seemed to 
be havens ror investors. 

In the last couple of days, more thin gs 
changed. Investors became frightened by 
Thailan d's political crisis, and specu- 
lators began taking aim at tbe Hong Kong 
dollar, whose value las been pegged to 
the U.S. dollar for tile past 14 years. 

Now, phase two of the crisis has 
begun, with- heavy setting hitting stock 

See RISK, Page 18 


A Domino Effect 
From Asia’s Woes 

The Asian financial debacle is 
having repercussions on markets 
and in capitals around the world: 

■ Beijing’s policymakers are 
watching the stock market and cur- 
rency chaos of the region with 
growing anxiety. Page 18. 

• All major European markets 
took a tumble over Hong Kong's 
stock plunge. Page 15. 

• Stock prices in Japan slid to 
their lowest levels in more than two 
years, as the Hong Kong rout ig- 
nited fears about Tokyo’s stuttering 
economy. Page 19. 

• China Telecom (Hong Kong) 
Ltd., the territory's largest new 
share listing, fell 9 percent in its 
first trading day in Hong Kong. 
Page 18. 


percent and began dipping into their $SS 
billion of foreign exchange reserves to 
defend the currency. As a result, the 
Hong Kong dollar actually strengthened 
slightly on Thursday, with the U.S. dol- 
lar slipping to 7.7085 Hong Kong dol- 
lars from 7.7460 on Wednesday. 

“If you allow tbe peg to go. capital 
flight will ensue tomorrow. ” Joe 
Zhan g, an analyst at Credit Lyonnais in 
Hong Kong, told The Washington Post, 
explaining why (he Hong Kong mon- 
etary authority would prop up the ex- 
change rate. “And then the property 
price rambles. Then you have massive 
defaults on mortgages and then collapse 
of the banks and then the collapse of the 
economy.’’ (Page 181 

Most other Asian currencies also 

See ASIA, Page 7 

Wall Street 
Stays Calm 
Despite a Hit 

Investors Convinced 
No Crash Is Looming 

By Mitchell Martin 

International Hcraid Tribune 

NEW YORK — Wall Street 
shuddered Thursday but held against 
financial convulsions that began in 
Hong Kong and circled the globe in the 
early hours of the day. 

Following sharp falls in Asian stocks 
and lesser but significant declines in 
Europe, the Dow Jones industrial av- 
savaged stock market fall further when , erage opened with a 170-point loss but 
trading resumes on Friday after its worst stabilized roughly at that level for much 


HONG KONG — The already tum- 
bling Hong Kong stock market suffered 
its biggest point drop ever Thursday, 
dragging down slock markets around 
the world — shares on Wall Street fell 
sharply — as the financial crisis grip- 
ping much of Southeast Asia 
deepened. 

Astronomical interest rates erected 
by authorities to prop up Hong Kong’s 
beleaguered dollar, which had been a 
last haven in the region's financial tur- 
moil. sent investors fleeing. 

In the space of a single day, Hong 
Kong investors saw $29.5 billion in 
paper wealth wiped away — one of the 
biggest -ever such losses anywhere — as 
the benchmark Hang Seng Index fell 
1.211.47 points, or 10.4 percent, to 
10,4263. 

Thursday's drop send a shudder 
around the world. On Wall Street, tbe 
Dow Jones industrial average closed 
186.8S points lower at 7,847.77. Most 
European stock markets dropped more 
than 3 percent. 

Other markets in Asia, rocked by 
almost four months of plunging cur- 
rencies, fell as well, but not by as much. 
Singapore shares fell 4.7 percent, those 
in Malaysia fell 3.4 percent and Phil- 
ippines stocks fell by 4.9 percent. 

The Hong Kong collapse marked the 
third biggest drop ever in percentage 
terms for the Hang Seng, which until 
August had been one of the world's best 
performing indexes this year. The index 
has fallen 23 percent this week alone, 
and, at its lowest level since March 
1996, is down 22.5 percent since the 
start of the year. 

The currency turmoil on the stock 
market poses the most serious dile mma 
yet for Hong Kong's new postcoloaial 
government 

Hong Kong authorities stood firm in 
defense of high interest rates to protect 
their currency, clearly ready to let the 


point drop on record. 

In an effort to defend the Hong Kong 
dollar, authorities here, backed by 
China, let one-day interest rates 
skyrocket overnight to as high as 200 


AGENDA 

U.S. Weighs Curbs 
On France’s Total 

WASHINGTON (AFP) — The 
United States has not ruled oat im- 
posing sanctions against toe French 
ofi company Total ova* its deal with 
Iran, a senior administration offi- 
cial said Thursday. 

A team of State Deportment ex- 
perts is in Paris “investigating with 
alacrity" to determine “tire facts of 
this case and to determine whether 
or not -this is sanctkmahJe activity,” 
said Stuart F-iwn«tfat, undersecretary 
of state for economic, business and 
agricultural attains. 

"If it is, sanctions are certainly a 
viable option,” Mr. Eizen s tat said. 

Total, with Russian and Malay- 
sian companies, has signed a deal to 
pump gas off the coast of Iran. 

Trade Center Blast 
Aimed to Kill Many 

The man accused of mastermind- 
ing the blast on Feb. 26, 1993, at 
New York's World Trade Center, 
Ramzi Ahmed Yousef, aimed to 
topple one of tbe complex’s towers, 
in the hope of killing tens or hun- 
dreds of thousands of people, a U.S. 
Secret Service agent testified at Mr. 
Yousefs trial. Page 3. 

PAGE TWO 

A Boom in Merchant Banking 

EUROPE Pag»s- 

Russian Tax Re form, in Umbo 

Books Page 12. 

Crossword. P*® 8 

Opinion Pages 8-9. 

Sports Pages 22-23. 

The h rterm sr ket 


The !HT on-line www.iht.com 


Papon Trial: A Big Whirlpool 

Gaullist Politics, Even de Gaulle, Being Sucked In 


By Roger Cohen 

New York Times Service 


BORDEAUX, France — Like a gale 
sweeping across the land, tire trial of Maurice 
Papon, an 87-year-old former Vichy func- 
tionary accused of complicity in tbe Holo- 
caust, is buffeting France's image of itself and 
p ushing the postwar Gaullist political move- 
ment into a deep crisis. 

After Switzerland and Sweden, two coun- 
tries that have been led to re-examine their 
wartime roles and the real meaning of * "neut- 
rality," France is being forced into a painful 
adjustment of its collective memory, one in- 
volving issues as basic as whether the country 
was truly victorious in World War II and what 
the role of de Gaulle was. 

“Enough, enough, enough!” was the ex- 
asperated reaction Tuesday of Philippe 
Seguin, leader of tbe Gaullist Rally for the 
Republic. In an article in the daily ne wspaper 
Le Figaro, he said that tbe Papon trial was 
becoming a Dial of “de Gaulle, of Gaullhun 
and of all of France." 

France founded its postwar self-image on 
idpac promoted by de Gaulle: that, despite the 


defeat by the Nazis in 1940. the country was 
victorious ini World War II; that the rqxibhc 
emerged unsullied by the collaborationist 
Vichy regime; that the Gestapo, and not the 
French police, rounded up French Jews for 
deportation and that there was a clean break 
between Vichy and the postwar governments. 

NEWSANALYSIS 

These myths and half-truths united a 
deeply divided country and laid the basis for 
Fiance’s rapid reconstruction as a major 
power. But they also left France vulnerable to 
a divisive re-examination of its past, which is 
being played out at tbe Papon trial 

Because Mr. Papon, as a Vichy official, is 

accused of organizing toe deportation of more 
than 1,600 Jews from wartime Bordeaux and 
because be went on to become a Gaullist 
official and a budget minister after the war, 
the questions arising at the trial present a 
direct challenge to nance’s view of itself. 

This view was, of course, already changing. 
In 1995, Jacques Chirac, the Gaullist pres- 

See FRANCE, Page 7 



Maurice Papon has defied prosecutors to produce evidence 
that he signed arrest warrants for Jews during the war. 


Allies Scorn U.S. Plan 
To Cut Gas Emissions 


By William Drozd! ale 

Washington Past Service 


Newsstand Pdcas 


...10.00 FF Lebanon 

- 1250 FF Morocco — 

1 . 60 Q CFA Qatar 

...10.00 FF Sautf Araha~..-10»J 
1.100 CFA Senegal — 

2.800 Lire Spain 'fSIS 

1250 CFA Tunsa 

-.1.250 JO ^ 

...700 Fis U.S. Mi {EurJ -- && 


i 


BERLIN — The United States^ ma- 
jor allies in Europe and Asia joined 
Thursday to criticize President Bril 
Clinton’s announced plan to curb global 
wanning as 1 weak and ineffectual 

They said the plan did not measure up 
to the responsibilities of the United 
States, as the world’s leading polluter 
and lone superpower, to protect the en- 
vironmenL 

Tire skeptical response to Mr. Clin- 
ton’s program of incentives and modest 
targets, which seeks to stabilize green- 
house gas emissions at 1990 levels be- 
tween the yean; 2008 and 2012, reflate 
how the world is starting to assess U.S. 
leadership in a new light m the post- 
Cold War era. 

In terms of the environment, allies are 
scrutinizing the United States to see 

whether it is willing to accept sacrifices 

to cope with global warming feat are 
commensurate with its overwhelming 
influence. And by, that wiM. Mr 
Clinton’s prescription on how to eurtati 
greenhouse gases came up short, m ure 
opinions of the allies. 


Germany’s environment minister, 
Angela Merkel, called the U.S. pro- 
posals "disappointing and insuffi- 
cient.” 

Japan's prime minister. Ryu taro Ha- 
shknoto, lamented that "there might 
have been. room for further efforts.” 

Britain’s deputy prime minister, John 
Prescott, said the plan did not go far 
enough and be urged the United States 
to become "much more ambitious” be- 
fore final negotiations on a global 
warming treaty in Kyoto, Japan, in early 
December. 

"It is simply not good enough,” said 
Peter Jorgensen, spokesman for the 1 5- 
nation European Union’s 1 executive 
commission in Brussels. "There must 
be something better coming from the 
White House if fee United States wants 
to face up to its global responsibili- 
ties.” 

Much of the world taxes gasoline so 
heavily — both to encourage energy 
conservation and to provide govern- 
ment revenue — that car feel often costs 
motoriste fee equivalent of $5 a gallon 
(3.785 liters) or more at fee pump. 

See GREENHOUSE, Page 13 


Next, Electronic Smoking 

A Battery-Powered Holder 



By Glenn Collins 

New York Times Service 


X 


The New Yut Tim 

INHALE — A smoker 
takes a puff, and the 
cigarette burns, 
EXHALE— And the 
cigarette stops burning. 


NEW YORK — Philip Morris Cos. is plan- 
ning to test a small electronic cigarette holder 
that eliminates smoke and ashes from the ends 
of cigarettes. 

The battery-powered "smoking system” is 
the first of its kind, and it cost $200 million and 
took years of research to develop, the company 
said. 

The device is a beeper-sized 4-ounce (125- 
gram) box containing a specially designed 
cigarette and an electronically controlled light- 
er that runs on rechargeable batteries. 

The tobacco bums only when puffed. 
Smokers could take a puff from a cigarette in 
its holder, put it down and take another puff an 
hour later. 

But smokers must lift the device to their lips 
for each puff, as if smoking a karoo. That does 
not exactly match fee "cool” image of an old 
movie idol such as Humphrey Bogart with a 
cigarette dangling from his lips. 

Critics say the .device demonstrates the 
lengths to which the tobacco industry will go to 
make a dangerous addiction more socially ac- 

See SMOKE, Page 7 


of the day and closed 186.88 points 
lower ar 7,847.77. 

Well before American trading start- 
ed, analysts noted that investors were 
piling into the U.S. Treasury bond mar- 
ket That pushed American interest rates 
lower across the board and this haven 
mentality provided some support for 
stocks in New York. 

"After the first whiff of fear in the 
U.S. equity markets, some who have 
any institutional memory will remem- 
ber the Hong Kong market was the one 
world market that was shut for four days 
in 1987,” said Michael Holland, a New 
York money manager who was recall- 
ing the global collapse a decade ago. 
“Tbe U.S. market looked to be more 
attractive then, too,” he added. 

Mr. Holland said feat he expected 
Wall Street to head higher "once fee 
dust settles." 

Many analysts and industrialists said 
that fee early-morning fears of a col- 
lapse on fee scale of the 23 percent drop 
recorded oh Black Monday — Ocl 19, 
1987 — were exaggerated and that fee 
troubles in Hong Kong reflected only 
the currency turmoil in Southeast Asia, 
not the beginning of a global crash. 

Peter Canelo. U.S. investment 
strategist at Morgan Stanley Dean Wit- 
ter Discover Co., said, "I think feat's a 
bit overdone. We’ve already had a ma- 
jor debacle in most of fee Tigers, and it 
hasn't done us much harm." 

He noted feat fee Standard & Poor's 
500-stock index, a broad measure of big 
U.S. stocks, rose to a record this month 
despite the currency problems experi- 
enced by many of Hong Kong’s neigh- 
bors over fee summer. 

Mr. Canelo did see some potential 
trouble spots, such as pressure on U.S. 
makers of computer memory chips, 
which will face brutal price competition 
from Asian companies whose costs 
have fallen with their home currencies. 
A more important problem, he said, was 
the risk feat fee financial problems in 
Hong Kong and other Southeast Asian 
countries would lead to bank failures, 
especially with Japanese lenders 
already in poor shape. But he said, “We 
probably overanticipated fee worst." 

“What it is is an. adjustment, and 
■ you've got a whole lot of adjustments all 
coming together in Hong Kong,” said 
Tim McNamar, a former deputy sec- 
retary of the Treasury under President 
Ronald Reagan. Mr. McNamar is now 
deputy chairman of Amtec Inc., a New 
York-based company that is part of a 

See WALL ST., Page 7 


| The Dollar 1 

NflwYoA 

Thinday O 4 P.M. 

previous cfesa 

DU 

1.7873 

1.786 

Pound 

1-6327 

1.633 

Ytn 

121.93 - 

12090 

FT 

5.9208 

5-9835 

Bl 




TtundDyctan 

PWtousctae 


7B47.77 

8034.65 

i S&P 500 1 

chanQB 

Thursday 9 

Prewous ctose 

-17.93 

95089 

968.62 


til 

id 

15 

•h 

i- 

in 

;h 

w 

» 

h 

n 












INTERNATIONAL HERALD TRIBUNE, TTHDAT, OCTOBER 24, 1997 


PAGE TWO 


The Swanky /The Not-So 


Midas Touch 
Of Merchant 
Banking 


By Leslie Eaton 

New York Times Service 


N EW YORK — ■ Golf, fly-fishing — 

perha ps. These are the recreations (aside 
from making money) that one associates 
with Wall Street’s elite. But bowling? 
Investment bankas do not go bowling. 

Actually, they own bowling. Goldman, Sachs & 
Co., fee high-hat firm that prides itself on being the 
last private partnership in the securities business, 
last year bought AMF Bowling, which mak es high- 
tech pinspotters and operates more alleys than any 
other company. 

■ And next week, Goldman and its partners are set 
to m ake a bundle when AMF sells shares to average 
investors across America, la the process, Gol dman 
will reap roughly $10 million in underwriting fee s, 
in addition to the $40 million ex so it has already 
collected from AMF. Plus, there is the almost 100 
percent in paper profit that Goldman will get 
overnight on its AMF holdings. 

The AMF deal illustrates the current state of one 
of the hottest, most profitable and least known fields 
on Wall Street, the business loftily known as mer- 
chant banking. 

This refers simply to deals in which the firms and 
their executives put up their own money (and cadi 
from other investors like pension funds), rather than 
merely serving in their traditional role as middle- 
men. 

Wall Street’s swankiest firms own everything 
from computer companies to chemical concerns — 
and a lot of more mundane businesses, besides. 
Donaldson, Lufkin & Jenrette, a unit of the Equit- 
able Cos., owns the chain-saw maker McCulloch. 
Blackstone Capital Partners owns a chain of funeral 
homes called Prime Succession. And Morgan Stan- 
ley, Dean Witter, Discover & Co. has fait it big with 
a macaroni maker, American Italian Pasta. 

Right now, the mer rhnnt - hanlring business is 
booming. Films are raising record amounts of 
money that they will use to buy big stakes in — or 
sometimes all of — various companies. Meanwhile, 
they are unloading investments at an even faster 
clip, taking advantage of the hot stock market to sell 
to the public some or all of the holdings they 
acquired earlier. Even firms that were burned by this 
business before are hustling to return to the game. 

All of which is raising suspicions in some quar- 
ters that, as usual with Wall Street, a good idea is 
getting out of hand. 

“We are rapidly approaching some of the sil- 
liness of the late 1980s,” warned Steven Berger, 
who heads a new $2 billion merchant banking fond 
for Lehman Brothers. 

Merchant banking has been around in America at 
least since JJP. Morgan in the late 19th century. But 
it was in the mid-1980s that many Wall Street firms 
jumped into die business with both feet. 

The reason, of course, was the takeover frenzy 
that swept corporate America. As corporate raiders 
like Irwin Jacobs and T. Boone Pickens moon ted 
hostile bids for corporations they considered 
bloated, managements borrowed huge sums to take 
companies private in what are Known as leveraged 
buyouts. Almost always, the debt-laden companies 
had to sell assets to stay afloat, which is why these 
deals were often called bust-ups. 

It was — at least at first — tremendously prof- 
itable, which naturally meant dial Wall Street firms 
wanted their share. In addition to raising money for 
buyout specialists, they decided to risk some of their 
own capital, often fry making bridge loans to tide 
over companies until they could sell junk bonds. 



For many firms, it was an adventure that ended in 
tears. In 1990, Drexel Burnham Lambert collapsed, 
and with it the junk- bond market 

“When the music stopped, everybody had bad 
bridges,” recalled Lawrence Schbss, who runs 
DU’s merchant banking operation. First Boston’s 
losses were so severe that its European parent. 
Credit Suisse, had to step in with a muitimillion- 
dollar rescue. Other firms, like Merrill Lynch & 
Co., left the business altogether. 

But a number persevered — among them DU, 
Morgan Stanley and Gol dman 

To be sure, the business changed. Most firms 
stopped pursuing bust-ups (there were few cor- 
porate grants left to chop up). And Wall Street 
increasingly started buying ownership stakes, rather 
than lending money: “There’s a lot more equity 
going into deals now than there was in die ’80s.” 
said Stephen Scbwarzman, who runs Blackstone 
Capital Partners. 

Today, merchant bankers usually avoid hostile 
takeovers. That is because their deals now involve 
money from state pension plans and college en- 
dowments, which do not want to be tarred as cor- 
porate raiders. (Typically, the Wall Street firm and 
its executives put up some of the money in a fund 
open to big investors, which they manage; in return, 
they get an annual fee. 20 percent of the profits and 
a pro rata share of the appreciation in the fund.) 

Over the last few years. Wall Street executives 
say, the focus has been on building companies up 
rather than breaking them apart. 

They now provide seed money for new ventures, 
finance corporate spinoffs and pay fbr acquisitions 
in very fragmented industries ranging from bill- 
boards to radio stations to. yes. bowling alleys (this 
is known as a build-up or roll-up). 

Merchant banking deals are driven by a variety of 
motives. Sometimes the deal is dreamed up on Wall 
Street At Morgan Stanley, for example, “We de- 
cide, T want to go into that business,’ whether it’s 
insurance or telecommunications,” said Alan Gold- 
berg, one of the heads of Morgan Stanley Capital 
Partners. “Then we find the right people and go 


The deal to sell 
shares in AMF 
Bowling to investors 
across America 
illustrates, the state 
of one of the hottest, 
most profitable and 
least known fields 
on Wall Street 


build a business around 
?■ them.” 

More often, however, the 
deals are done to help clients, 
many of whom have already 
been swept op in the concent 
takeover wave. A corporation 
may want to shed a business 
that it inadvertently acquired 
in a merger, fbr example, or a 
group of managers may be 
unhappy about running a unit 
under new owners. 

Indeed, for many firms, 
merchant banking is tbe ul- 
timate tool to help their cor- 
porate clients, said Mr. 
Schloss of DLT, which has 
one of the most profitable op- 
erations on Wall Street Still, 
to succeed, the firms most 
make sound investments, not 
simply do deals that generate 
hefty fees, which seduced 
some firms in tbe 1980s. 

Bat there is a more com- 
pelling reason Wall Street 
loves merchant banking: 
profits, for the firms and their 
executives. In the last two 
decades, “private equity in- 
vestments’* have averaged 
an armnal return of 20.8 per- 
cent, according to Morgan 
Stanley. While that may not sound so compelling 
given the stock market's recent gains, it far outpaces 
stocks' average annual return of 14_5 percent 
And some firms have done far better. DLJ’s fund 
has returned as much as 90 percent a year. Lehman’s 
original fund, raised in 1989, retained almost 40 
percent annually. Morgan Stanley said it had av- 
eraged about *30 percent 
At any time, it is hard to tell how firms’ private 
portfolios are doing. They tend to cany their in- 
vestments (m their books.for the amount they paid 
for them. But recently . the bot market has prompted 
firms to realize some of their gains by taking tneir 
holdings public. JP. Morgan & Co., the big Wall 
Street bank, has done about IS initial public of- 
ferings for its holdings in the last year. This year, 
Morgan Stanley has done five IPO’s and three 
secondary stock offerings. 

Just in the last quarter, DU matte $86 million 
from its portfolio, Lehman made $65 million and 
Morgan Stanley made $206 million. As a per- 
centage of revenues generated in a roaring boll 
market, those are small numbers. But almost all of it 
is profit, said John Keefe, an analyst and consultant 
to securities firms. 

Those huge profits tend to draw hordes, and that 
is exactly what has happened in private equity. 

B ACK IN 1990, firms and their clients 
raised a mere $8 billion for buyouts and 
similar investments, according to the 
Private Equity Analyst, a newsletter in 
Wellesley, Massachusetts. This year, the number 
has already topped $30 billion and by some reck- 
onings may hit $50 billion. 

But the high prices merchant bankers are paying 
in the United States these days may depress the 
returns they will reap in three or five years, said 
Brian Watson, who runs JP. Morgan’s merchant 
banking business. 

“At the moment people are so bullish, maybe 
over-bullish, about the prospects for private equity 
investments,’ ’ he said. But among savvy investors, 
“expectations are coming down pretty rapidly.” 


Bariara Alpe/Tto haw Hark Tm» 


Trade Atop Its Agenda, * 

Commonwealth to Meet" 




By Tom Boeride 

International Herald Tribune 


LONDON — Seeking to inject new 
purpose into an organization often de- ■ 
rided as a debating society, tbe leaders 
of the 54 Commonwealth nations fame 
to transform the group into a motor tor 
trade and investment when they open a 
meeting Friday. 

At their four-day meeting in Edin- 
burgh, the leaders will review proposals 
to adopt a code of good business prac- 
tice to encourage in vestment in devel- 
oping members and to remove customs 
duties on exports from the least-de- 
veloped nations. 

The biennial meeting marks the first 
time the Commonwealth leaders have 
devoted their agenda to economic and 
trade issues. 

For a group that traces its origins to 
toe British 'empire, it is a late wake-up 
call to the femes of globalization, pri- 
vatization and free trade. But members 
say it is time to shed the ideological 
baggage of empire, which long viewed 
foreign investment as a tool for neo- 
colonialization, and to start looking to 
commercial advantage in their shared 


* 


7e have a common language in a 
global economy in the information 
age,” the meeting's British host. Prime 
Minister Tony Blair, told a gathering of 
senior officials and business executives 
at a Commonwealth business forum in 
London this week. “We have many 
shared practices, •similar legal and ac- 
counting systems. And we can do more 
business with each other if we make 
more of these advantages.” 

The forum itself was a sign of the 
times, providing the first such precon- 
ference occasion to business leaders to 
mix with fee group’s politicians. 

It allowed such leaders as President 
Yoweri Museveni of Uganda and Prime 
Minister Chandrika Bandaranaike Ku- 
maratnnga of Sri I nnka to make their 
case for foreign capital by emphasizing 
their commitment to the market and free 
trade. 

The trade initiative reflects a new- 
found confidence among Common- 
wealth leaders following the group’s 
role in helping to end apartheid in South 
Africa and promote, democracy in 
Africa. 

Since fee leaders adopted a set of 
principles on democracy and human' 
rights at their 1991 meeting in Zjid-, 
babwe, the number of military dictat- 
orships or one-party regimes has fallen 
to two from nine. Meanwhile, Yemen, 
Rwanda and fee Palestinian National 
Authority are seeking admission to the 
club. 

“It’s a measure of success of a dy- 
namic and increasingly relevant .orga- 


nization,” said Chief Emcka AnyaptaL .. 
the Nigerian who serves as the Conor 
mbnweaife secretary-general 

The C ommo nwealth has little to 
show so far for its efforts to restore 
democracy in Nigeria; which was su®" 
pended front tbe group in 1995 after me ^ 
military regime executed Ken Saro- ' 
Wiwa, fee author and minority nghis : . 
advocate, and eight others, and in Sierra * 
Leone, where the government was over- ( 

thrown in a coop last November. 

Some cat-and-mouse diplomacy:; 
threatened to overshadow tbe meeting- 
when Foreign Minister Tom Drinn f 
vowed to send a Nigerian delegation to 
gate-crash fee meeting, only to be told ^ 
by Britain that any Nigerian officials 
would be denied entry to the country. 

ConanonweaWt officials said the- 1 
meeting was likely to leave policy to- . 
ward Lagos on hold to see if General ^ 
Sani Abacha keeps his promise of trans- 
ferring power to an elected government - 
by October 1998. 

TRAVEL UPDATE; ' 

British Air to Expand ^ 
Gatwick Operations ' « 

LONDON (AFX) —British Airways ; 
announced Thursday that.it will in-.,- 
crease its capacity at Gatwick Airport 
by 25 percent by the summer of 1998- f 
and that it will add nearly 500 cabin 
crew and customer service jobs. It also- 
said it would start new routes from, 
flafwirlc, add flig hts to existing servibes 
and buy larger and quieter aircraft 

BA said its expansion woald focus on 
the United States, Latin America and the 
Caribbean, five Boeing 777s will be 
added to the Gatwick fleet, replacing - 
DC- 10s that fly to Datias-Fort Wor^i, 
Atlanta and Bermuda. , 

Bonn Has Bad News . • • 
After Safety Checks 

BONN (AFP) — About 90 percent of 
foreign charters checked in Germany" : 
since mid- 1996 showed safety faults, in 1 ' 
one case serious enough to puli .fee. f 
plane out of service, the German tranfc-V - 
port minister has said. 

Of 738 plane safety checks, only 66 - 
showed no safety faults, Matthias Wiss- ! 
man said Wednesday. • 

Approval to the high-speed train ■ 
link feat China hopes to build over the ; 
1300 kilometers (800 miles) that scp~ i 
arale Beijing and Shanghai is “immin- 
the railroad 



ent, 

day. 


ministry said Thurs- 
(AFP) 


General Strike Shuts Greece for 24 Hours ; 


The Associated Press 

ATHENS — A nationwide general 
strike brought Greece to a standstill 
Thursday, wife serious disruptions to 
public transportation, banking and hos- 
pitals. 

Greece’s two largest onions, repre- 
senting tbe public and private sectors, 
participated in the 24- hour strike against 
government austerity policies aimed at 
helping Greece meet fee fiscal require- 


ments to joining fee European Union /. 
common currency. 

Unions said tbe strike was a success, ■ 
wife 70 percent to 100 percent par- 
ticipatioh. 

The national carrier, Olympic Air- \ 
ways, changed departure times of 12 : 
international and 21 domestic flights. ‘ 
Many other flights were disrupted by a 
four-hour work stoppage by air traffic 
controllers. 


f 


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Czechs Adopt 
Tighter Rules 
On Taxi Privers 

The Associated Press 

PRAGUE — Legislators 
voted Thursday to tighten 
regulations on taxi drivers, 
many of whom, especially in 
Prague, have a reputation for 
overcha rging , the news 
agency CTK reported. 

Tbe lower chamber of Par- 
liament amended the law on 
road transport to introduce 
obligatory meters in taxis and 
to allow only people who are 
over 21 and have clean re- 
cords to become taxi drivers, 
the report said. 

The amendment also allows 
municipalities to set addition- 
al rules, such as requiring 
drivers to demonstrate know- 
ledge of fee cities or towns 
where they are licensed. 

Of 185 deputies present, 
165 voted for the amendment, 
which will come into effect 
next April, CIX said. 

Last month, Prague author- 
ities decided to reintroduce 
maximum taxi fares for de- 
livery to particular locations, 
to try to curb cheating. 

The drivers will be allowed 
to charge, at most, 17 koruna 
(about 51 cents) per kilometer 
(0.62 mile) and to set fee start- 
ing fare at a maximum of 25 
kOTuna. Tbe move should be- 
come effective Dec. 1. 


WEATHER 


Europe 


Today 

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Forecast for Saturday through Monday, as provkfed by AccuWaattief. Asia 


1 

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> 



North America 
A norm in the southern 
Plains Saturday via heed 
northeast wfch soaking rain 
horn Ifinois to Penneytwa- 
nta. Cold air <*■ south- 
ward across the northern 
Plains and the Great Lakes 
behind that storm. Sunny 
and warn In the tor West 
through Monday. Rainy 
and cool in the Northoesl 


Europe 

Cold with snow and ice 
across Scandinavia and 
we ste r n Russia Saturday 
to Monday; Warsaw could 
also have some snow this 
weekend. Dry and chilly 
with some sun in Germany, 
while England and norflt- 
em France wHI be partly 
sunny and cool. Warming 
up in Spain and southern 
Fiance. 


Asia 

windy and cold in Be png 
and most ol northeast 
China 4hb weekend, but a 
nttle milder on Monday. 
Manchuria will be wlhdy 
and cold with snow and 
blowing snow. Showers In 
Tokyo Saturday, then dry 
and cooler. Soaking rain 
will taU across southeast- 
ern Cttoa. and In southern 
and eastern Tibet 

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INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24s 1997 


PAGE 3 


i 

mm 


THE AMERICAS 




tt) At ^ Laser Test Was Failure, 

^Giving No Useful Data 

■'No Readings From Targeted Satellite 


Jeffrey Smith 

U'txhtngtM Post S^n-ice 




ii t. 


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: WASHINGTON - A U.S Army 

■ a^naat last week involving thTtar 
-C 311 air force satellite by a 

: ; V laser produced no useful data 

? on the laser s lethality, failing to meet 
: . rhe experiments principal god, accord- 

• finals defeDse 3X1(1 c °ngressionaI of- 

Not only that, the User suffered a 

• ■ . technical malfunction in the aftermath 
: . of the experiment, which was ostensibly 

designed to assess how vulnerable U S 
. military salutes are to ground-based 
■ - '{lasers, the officials said. 

- . Wor . d rf *®S b **» seeped out two 

- days after the Defense Department pro- 
. ^ noonced the experiment a success be- 

• cause the laser at White Sands Missile 
Range, New Mexico, was able to strike 
the satellite as planned when it flew 260 

* l I 1 !).} Friday^ 15 falometereJ ovei *ead last 

The laser was able to hit the satellite 
\irtni’ a relatively low-power beam. 

Mpfr comparable in intensity to what the 
•{Lii.. . army uses routinely to track satellites 

r'atlUfc SP 306 * a department spokesman, 

Robert Potter, said. It had done this on 

• previous occasions. But the satellite 

• was unable to transmit any data during 

the'moments when the laser struck U 


with a beam of gradually increasing 
intensity. Mr. Potter' said this circum- 
stance fell into the categoiy of things 
' we did not accomplish but would 
have liked to." 

Mr. Potter added that no mention of 
the shortc oming s was made on Monday 
because pnblic affairs officials in Wash- 
ington were unaware of them. An ac- 
count of some of die problems appeared 
in the trade publication Inside Missile 
Defense. 

Mr. Potter also said the severity of the 
laser's malfunction was unclear because 
the army was * ‘very reticent” to provide 
details, but said he understood the dam- 
age was not permanent. 

Hitting the satellite at the higher 
power level was such a precedent-set- 
ting event that it required the personal 
approval of Defense Secretary William 
Cohen. It also came over the objections 
of President Boris Yeltsin of Russia, 
who wrote President Bill Clinton a letter 
last month on arms control matters that 
included a complaint about the impend- 
ing experiment. 

Democratic lawmakers and U.S. 
satellite makers also had raised protests, 
arguing that no serious threat to U.S. 
satellites exists now and that , given the 
country's reliance on satellites, it has the 
most to lose from a global arms race in 
satellite- killin g weapons. 



L M Ofrw>Thc AnvvialrJ Piesi 


HOPEFUL — People waiting for applications to be processed at the office of the Immigration and 
Naturalization Service in Dallas. The House of Representatives agreed to extend by two weeks a statute that 
allows illegal immigrants to remain in the United States, if they pay a $1,000 fine, as they seek residency status. 


Away From 
Politics 

• A power outage hit San Fran- 

cisco, disrupting business and forcing 
residents to direct traffic through in- 
tersections with no tights. Failure of a 
bank of transformers at about 6:15 
AM. blacked oul a five-mile stretch 
in midtown, from the Manna District 
to Sunset District. High-rises went 
dark and hospitals were forced onto 
emergency generators. ( AP 1 

• A man in Dover, New Jersey, was 

in critical condition after contracting 
rabies from a bat, the first confirmed 
case of human rabies in the state in 26 
years. (API 

• An air force training jet collided 

with an F- 1 6 fighter over Edwards Air 
Force Base in California and crashed 
in the Mojave Desert, killing the two 
men aboard the trainer, an American 
and a Briton. The F-16 landed safely 
on a dry lake bed at the desert base, 
and the two Americans aboard were 
reported ro be unhurr. <\’YT} 

• Three members of an internation- 

al child pornography ring that used 
the Internet to transmit pictures of 
children being sexually molested 
have been sentenced in San Jose, 
California, to long prison terms. Ron- 
ald Riva of Greenfield. California, 
was sentenced to 50 years in prison; 
David Tank of Cheney. Washington, 
to 19 years and 7 months, and Chris- 
topher Saemisch of Lawrence. Kan- 
sas, to 1 1 years. (Reuters) 


id 


Hate Spiels Are Only a Mouse Click Away on the Internet 


By Michael Janofsky 

A’rtr York Times Service 


K' :* r 




WASHINGTON — From an Internet Web site 
called Nazism Now, it takes only a mouse click to 
11,1,! V; reach such sites as ‘*1 Hate lews — The Anti-Seanetic 
'* Homepage”: "Knights of the Ku KJux Klan," and 
the “White Nationalist Resource Page.” 

Those and dozens of other sites celebrate white 
supremacy, anti-government fervor and denial of the 
Holocaust. In recent years, the number of such sites 
has doubled, to 250 or more, officials of the Anti- 




fill* 


Defamation League say in a report Abraham Fox- . 
man, national director of the league, said he would 
like to see software that can block such sites, s imilar 
to that available to parents who want to block their 
children's access to sex and violence on television. 

But with cyberspace so vast, and growing beyond 
a foolproof reach of any single blocking program, 
Mr. Fo x man said Tuesday, league officials have 
begun discussions with America Online, the largest 
Internet sendee provider in die United States, to 
create a warning system that would alert members 
to content they might find objectionable. 


William Burlington, America Online's director 
of law and public policy, said that such a program 
might be available in the next several months but 
that its effectiveness would be limited. As a sub- 
scription service, America Online provides a path 
to the Internet for its members only, about 9 million 
people. Tens of millions of people around the world 
gain access through hundreds of other providers. 

Any blocking system would have a formidable 
amount of content to cover. As the league's report 
says: “Shrewd bigots” recognize the power of the 
Web ‘ ‘and are rushing to use die enormous power of 


this revolutionary new communications medium.” 

Some sites carry their own red flags. The 
Knights of the Ku KJux Klan warn visitors that 
their views are not necessarily shared by the pro- 
vider, adding: “This page is entirely political in 
nature. If you do not agree with ourpolitics, that is 
fine. Just remember that we have every right to 
express our opinion.” 

But more often, the bigotiy is trumpeted. The 
misspelled “Anti-Semetic Homepage” snows a pic- 
ture of a burning synagogue and asks, “Hate Jews?" 
If so, visitors are fold, they are in the right place. 


POLITICAL N 




’ ' • 

& '' 


ikol 


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'->v* -- 



Republicans Distributed Funds 
To Sympathetic Outside Groups 

WASHINGTON — In the closing weeks of the 1996 
campaign, the Republican National Committee steered 
more than $ i million in contributions from its major donors 
to sympathetic outside groups, collecting the checks at the 
RNC and then passing them on to the other org aniz a tion s, 
documents obtained by Senate investigators show. 

The documents, obtained last week from the ■campaign of 
former Senator Bob Dole, Republican of Kansas, by the 
Senate Governmental Affairs Committee, demonstrate that 
Haley Barbour, who was then chairman of the Republican 
National Committee, and the deputy finance director, Jo- 
Anne Coe, tapped big Republican donors to make large 
contributions to die outside groups. Unlike political parties, 
such groups don’t have to disclose where their money 
comes from or how they spend it 

The groups included the National Right to Life Com- 
mittee. an anti-abortion group that was heavily involved in 
voter education projects in the 1996 campaign, and Amer- 
icans for Tax Reform, which made 4 million phone calls and 
sent 19 million pieces of mail urging voters to dismiss 
Democratic warnings about Medicare cuts. 

The documents show that Miss Coe passed on checks for 
$100,000 each to the Right to Life Committee and Amer- 
icans for Tax Reform from Carl Lindner of the American 
Financial Group, a major donor to both parties. (WP, ) 


Is Social Security Next for Clinton? 

NEW YORK — With trade liberalization and global 
wanning already on the menu, one mi«ht expect President 
Bill Clinton to take a break before heaping another difficult- 
to-digest economic issoe on his plate. In fact, the White 
House is close, to making a decision on whether to. add 
Social Security to his agenda.' There is reason for the haste. 
While the president has three years left in office, the 
political window of opportunity for tackling this most 
sensitive of issues is narrow. 

Creating the bipartisan will to cut benefits or force 
workers to set aside more of their incomes for retirement is 
only the first step. Actually designing xhe plan to eliminate 
$S trillion in unfunded pension liabilities could prove far 
more difficult 

- After this summer’s budget accord, a triumphant Mr. 
Clinton allowed that the respite from fiscal crisis “gives us 
a rare opportunity to take steps for die long-term well-being 
of our country.” If that is to include major changes in Social 
Security before the millennium, the White House is con- 
vinced die Campaign must begin soon. (NYT) 


Quote/ Unquote 


Hillary Rodham Clinton, on finding safe, reliable child- 
care in the United Stales: “I drink it’s a silent crisis. Most 
parents know that it’s very difficult to find, at affordable 
cost for them, what they want for their children.” f AP) 


‘Bill of Rights’ for Health Care 

Proposal Spells Out Protections for Those Insured 


By Amy Goldstein 

Washington Post Sen-ice 


WASHINGTON — A- presidential 
commission has outlined a broad set of 
protections for consumers frustrated by 
a changing health care system, propos- 
ing that patients be guaranteed a choice 
of medical plans, more information to 
make smart decisions and new ways to 
protest when they become dissatisfied 
with their care.- 

Under the proposal, intended to pro- 
tect all Americans with insurance, 
health plans would be forbidden from 
imposing “gag rules” that restrict ihe 
kind of treatment options physicians can 
mention to their patients. The confid- 
entiality of medical records would be 
guarded more closely. And patients who 
ore pregnant or chronically ill would be 
able to keep their own doctor for a 
guaranteed period of time, even if 
forced to switch health plans. 

The proposed “bill of rights” is the 
first concrete plan to emerge from a di- 
verse panel — including representatives 


of insurance companies, consumers, phy- 
sicians and employers — that for months 
has been debating what safeguards are 
needed to ensure good medical care. 

As a result of a quiet, ongoing rev- 
olution in health care, most patients now 
are covered through health maintenance 
organizations and other forms of “man- 
aged care,” which try to constrain costs 
by limiting how much and what kind of 
care people may receive. 

Even as its members found broad 
areas of consensus Wednesday, the 
commission remained splintered over 
several important questions — whether 
health plans should be able to exclude 
people who are sick, for example. 

Only those initiatives that won unan- 
imous approval were included in the 
proposals agreed to Wednesday. 

The panel plans to adopt its “bill of 
rights” in final fprm next month and to 
submit it to President Bill Clinton, who 
will have to decide if it should become 
the basis for legislation, regulation or 
exhortations for the insurance industry 
to police itself. 


Zedillo Assails 
U.S. for ‘Mess’ 
Left by Drugs 


By Douglas Farah 

Washington Post Service 

MEXICO CITY — President Ernesto 
Zedillo, breaking from his traditionally 
diplomatic tone, said the United Slates 
should pay Mexico reparations for the 
harm that drug trafficking has done his 
nation rather than judge Mexico's anti- 
drug efforts. 

The remarks, published Wednesday 
in several newspapers, were made to 
reporters after a meeting of the Inter- 
American Press Association in 
Guadalajara. A presidential spokesman 
had no comment on the statements, 
which were not taped. But several news- 
papers quoted Mr. Zedillo’s statements 
identically. 

Mr. Zedillo’s comments, which con- 
trasted with his frequent public pledges 
of cooperation, came as the debate over 
Mexico's anti-drug efforts continued in 
the United States and as senior U.S. and 
Mexican officials met in Washington to 
find new ways to cooperate in the fight 
against drug trafficking. ' 

For example, Mr. Zedillo, who in the 
past has gone out of his way to avoid 
confrontation on drug-related issues, 
blasted the annual process of certific- 
ation, in which the United States eval- 
uates the anti-drug efforts of countries 
around the world. "They still want to 
certify us,” Mr. Zedillo was quoted as 
saying. “They should indemnify us for 
the filthy mess they leave us.” 

The process is detested by Latin 
Americans, who say the United States — 
where most of the cocaine produced in 
the hemisphere is consumed — lacks the 
moral authority to judge other nations. 





Trade Center Bomber Aimed to Topple Tower, Agent Says 


» 


By Benjamin Weiser 

Nete York 7Tim* Service 


(gfc, L 








y 


NEW YORK — As smoke 
rose from the towers of the 
World Trade Center on Feb. 
26, 1993. after a huge blast 
bad torn through the center’s 
garage, a jury here was told, a 
man watched intently from 
across the Hudson River. 

. The man, Ramzi Ahmed 
Yousef, may have had mixed 
feelings as he watched, a 
Secret Service agent sugges- 
ted in testimony in U.S. Dis- 
trict; Court on Wednesday. 
While the blast killed six 
people and injured more than 
LOOO, Mr. Yousef had hoped 
it would topple one of the 
Trade Center towers and kill 
tens or hundreds of thou- 
sands, the agent testified. 

. ; Still, he must have been 
wlieved that he himself was 
^ot “among the bomb’s vjc- 
. Um$.Not long before, accord- 
ing to the federal agent's ac- 
count, Mr. Yousef and several 
conlcsderaies had sal trapped 
behind a truck as they tried to 
flee the Trade Center’s gar- 
age; feeling like characters in 


an action movie as the bomb’s 

timer ticked down. 

The agent’s testimony was 
based oa the six hours that he 
said he and a colleague had 
spent questioning Mr. Yousef 
on a flight to the United States 
from Pakistan after his arcest 
there in 1995. It added a num- 
ber of details to the govern- 
ment’s case against Mr. 
Yousef, who is on trial in New 
York on federal charges of 
masterminding the Trade 
Center bombing. Shortly after 
the agent’s testimony, federal 
prosecutors rested their case. 

Through much of the gov- 
ernment’s case, ’which has 

taken more titan two and a half 

months to present, the jury has 
heard tedious testimony from 
scientists and other experts 
about mostly forensic evi- 
dence — chemicals, finger- 
mints, explosive residue. 

But the jurors seemed par- 
ticularly attentive Wednesday 
as the Secret Service agent, 
Brian Parr, described what be 
said were Mr. Yousefs ad- 
missions about his direct role 
in the bomb plot, his motives 
and goals, and where he had 


thought he had failed. 

“He said it was in retal- 
iation for U.S. aid to Israel,” 
Mr. Parr testified. ‘T asked, 
why not select Israeli targets? 
He said Israeli targets were 
too difficult to attack. He said 
if you cannot attack your en- 
emy, yon should attack the 
friend of your enemy. ’ ’ 

Mr. Yousef said he had 
hoped the explosion would 


>pplei 

the other and kill 250,000 
Americans, Mr. Parr testified. 

“He related to us that dur- 
ing World War II the Amer- 
icans had dropped the atomic 
bombs on the cities of Hiroshi- 
ma and Nagasaki, killing 
250,000 civilians, and he said 
that the Americans would 
realize if they suffered those 
types of casualties that they 


were at war,' ’ Mr. Parr said. 

Lawyers for Mr. Yousef 
and his co-defendant, Eyad Is- 
moiL who is accused of driv- 
ing the van containing the 
bomb, will begin presenting 
their case next Tuesday. 
While Mr. Yousef was con- 


victed last year for a plot to 
bomb airliners in the Philip- 
the current case is his 
it trial on charges connec- 
ted to the Trade Center attack. 
Four other conspirators were 
convicted in the Trade Center 
bombing in 1994. 


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PAGE 4 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24,1997 


ASIA/PACIFIC 


Taiwan? What’s the Problem? Ask Chinese Officials Now 


’By Steven Mufson 

Washington Post Service 


BEIJING — • Just 18 months ago, 
tensions over Taiwan nearly sent U.S.- 
China relations up in flames. China fired 
live missiles off the island to intimidate 
Taiwanese voters and the United States 
sent 16 warships to the area. 

Now, .just before President Jiang 
Zemin’s visit to the United States, the 
warships and missiles are quiet China is 
sending a more conctiiatoiy message: 
Keep the status quo and let time and 
closer contacts between China and 
Taiwan solve the Taiwan problem. 

“We don’t have any time frame for 
solving this problem,” Tang Shubei, 
head of the Association for Relations 
Across the Taiwan Strait, said in an 
interview last week. Instead of criticizing 


the United Stores for its relations with 
Taiwan, Mr. Tang expressed satisfaction 
with U.S. efforts to defuse the issue. 

The issue is tins: Taiwan, once a 
dictatorship, is now a democratic, self- 
governing island with the world’s 
second-largest foreign exchange re- 
serves, a major role in .the world econ- 
omy and strong ties to the United States. 
But China still regards the klgn d as ^ 
of its provinces, split off by 
Nationalist forces who had lost China’s 
civil war to the Communists in 1949. 

The United States severed formal ties 
with Taiwan when it recognized China 
in 1979. Washington has recognized that 
there is only “one China” in three com- 
muniquds: the Shanghai Communique 


in 1972, the communique establishing 
diplomatic relations in 1979 and an ad- 
ditional joint communique in 1982. 


Since those accords, Taiwan has 
blossomed into a vibrant democracy. 
Yet it lost China's seat in the United 
Nations, still lacks a seat of its o wn and 
is only an observer in many interna- 
tional organizations. 

Taiwan’s s tatus remains an emotion- 
al issue on both sides. 

“Taiwan is the core issue that can 
rock our relationship.” said a key 
Chinese foreign policy adviser. “Other 
issues amid be problems,” he added, 
but ‘Taiwan could be a disaster.” 

“China and the United States would 
liVft to m ai ntain foe status quo,” said 
Chn Shalong, director of the North 
America affair s division, of the China 
Institute of Contemporary International 
Relations. “But the problem is Taiwan. 
A lot of people say that Taiwan T s pres- 
ident, Lee Tene-hui, can destroy U.S-- 


China relations any tune he wants." 

Mr. Lee did nearly that two years ago. 
Driyen by popular sentiment in Taiwan 
for independ enc e and wider world ac- 
ceptance, he waged a campaign .of 
“pragmatic diplomacy,” making so- 
called private visits to countries that had 
not recognized Taiwan as separate from 
China. During those visits, be would 
find the opportunity to meet other heads 
of state. 

In January 1995, Mr. Jiang an- 
nounced an eiehr-poiniplan for wanner 
relations with Taiwan, while he did not 
renounce the option of u«ing force to 
bring about reunification, he did say that 
Chinese should not fight Chinese. In the 
context of China’s cautious political en- 
vironment^ it was an outstretched hand. 

Mr. Lee ignored ft. He applied for and 
received permission to attend an 


Governing Party in Seoul 
Caroms Toward a Split 




Reuters 

SEOUL — The governing New 
Korea Parry appeared to roll closer to a 
split Thursday when a key supporter of 
President Kim Young Sam resigned as 


the party’s general secretary. 
Kane Sam Jae. known as ; 


Kong Sam Jae, known as a link be- 
tween President Kim and the party’s 
presidential candidate, Lee Hoi Chang, 
resigned a day after Mr. Lee demanded 
that the president leave the party to 
ensure a fair presidential election on 
Dec. 18. 

Mr. Kang’s departure signaled die 
seriousness of die rift between Mr. Lee 
and President Kim’s core of party faith- 
ful, analysts said. 

“This incident seems to confirm the 
ruling party is splitting up.” said Shin 


Myang Soon, a political science pro- 
fessor at Yonsei University. "The fac- 


fessor at Yonsei University. “The fac- 
tion dissatisfied with Lee could form an 
anti-Kim Dae Jung coalition and choose 
a new candidate.” 

Kim Dae Jung, die opposition can- 
didate for the National Congress for 
New Politics, leads most polls as the 
favorite to win the presidential elec- 
tion. 

Mr. Kang had accused Kim Dae Jung 
of amassing $73 million in slush funds 
and concealing the money in relatives’ 
accounts. Mr. Kim has denied the al- 


Bnt the governing party and Mr. Lee 
were wounded Tuesday when South 


Korea's prosecutor-general said he 
would not look into the claims'against 


would not look into the claims against 
Mr. Kim until after the election. 


“For the past two and a half months, 
I worked for one goal, to win the elec- 
tion with our party candidate, Lee Hoi 
Chang,” Mr. Kang said. “Butlhavenot 
been able to produce any good results, 
and 1 feel it is because of my own 
shortcomings." 

Some party officials said the pros- 
ecutor’s decision indicated that Pres- 
ident Kim no longer s u pport e d his own 
candidate, Mr. Lee. 

Mr. Lee’s attack on President Kim 
came the next day, and the president 
rebuffed him by saying through his 
spokesman that he had no intention of 
leaving the party or of resigning as its 
honorary chairman. 

Kim Chung Gram, who also resigned 
Thursday — as an adviser to Mr. Lee — 
said the New Korea Party could 
splinter. 

“The party could be dissolved in 
order to support a new candidate, or the 
party could force Lee to give up his 
candidacy," Kim Chung Geun said. 

“If the candidate can’t win the elec- 
tion then measures must be taken so that 
the party can win.” 

He said the party could bade Rhee In 
Je — a former governor of Kyonggi 
Province who left the New Korea Party 
to ran independently — through an al- 
liance or by creating a new party. 

President Kim. meanwhile, said 
Thursday that he would meet the pres- 
idential randiAira-s individually. His 
spokesman said the president was 
scheduled to meet Kim Dae Jung for 
breakfast Friday. 


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reunion at Cornell University, in Ithac a , 
New York, in mid- 1995, even though 
the United States had denied visas to 
Taiwan government officials fix more 
than 15 years. China’s government was 
pnraggH a pij Chine se- American rela- 
tions soured. 

Chinese leaders in favor of a tough 
grand ruled the day and foe missile tests' 
followed in March 1996. coinciding 
with foe first democratic elections for a 
Taiwanese president. Those elections 
posed a threat both to China's argument 
mat Taiwan is a province and to China s 
assertions Democracy cannot work 
in an Asian context. 

Now, however, the storm seems to 
have passed. Mr. Lee’s recent stopover 
in Hawaii on his way to Central Amer- 
ica was largely ignored here, and China 

seems less bothered by Taiwan’s quix- 
otic Mwipaiwi for UN membership- ' 

InsteadTchinese officials once again 
talk about Mr. Jiang's eight points. 
While com p eting with Taiwan for the 
support of even the smallest countries, 
China plans new nongovernmental ex- 
changes with Taiwanese. A few months 
ago, r’hiwo g»id that if Taiwan rejoined 
China, foe island could keep its military 
forces and Mr. Lee could receive the 
largely symbolic post of vice president 
of China. And a Beijing monthly 
magazine, Cross-Straits Relations, 

• called this weds: for early political ne- 
gotiations between the mainland and' 
Taiwan. 

• The only item Beijing will not com- 
promise on is sovereignty. 

“Under foe prerequisite of one 
Ctrj na, any issue can be discussed and 
any comment and proposal, if it is help- 
ful to the reunification of foe moth- 
erland, can be put forward,” Mr. Jiang 
told the recent Communist Party con- 
gress. 

Meanwhile, Taiwanese business' in 
China is thriving. About 35,000 
Taiwanese companies operate on the 
mainland, and Taiwanese nave invested 
about $15 billion in China. 

Beijing realizes that for now, the best 
it can hopefor is foe status quo, a phrase 
used by three influential Chine se for- 
eign policy analysts todescribe China’s 
limited goals. Polls show a vast majority 
of Taiwanese favor either their de facto 


- .. ~ -T . pt.ii 

mniM I.-'" , H 

Burmese DissWeni^f 

■ "V* • ' 


DiesinPrison 


RANGOON — A member of 
Daw Aung San Suu Kyi's National 
League for Democracy Patty has . 
died in custody, Bumta^s ■ mditarr = - 

. _ _ A J *- - 


U Kyaw Din, 58, died of acaj£; 
pulmonary edema Monday -at' .-te 
prison hospital while serving 
y ear jail sentence, the gove rn 
said m aatatemcoL .T 
The hospital said U Kyaw pfe-, 
also suffered from renal fall ore anf* 
“malignant hypertension." l s •• 

Officials from the party, co-fo^L 
ded and ran by Aung San Suu K®"-; 
were not available for' comment ?’ 
Six well-known -party wsxobmi 
have died in custody since 19S8, 
party’s records show. ( RemtiQ 


Fire, butNotSnw j 
Abates inlndonesi 


JAKARTA — Forest andhrath 
fires in Indonesia are gradually fib?-; 
ing brought under control, 66t; 
smog from months of bunting-.jfe ’ 
still posing problems at home and 
abroad, a senior environmental <$- 
ficial said Thursday.. . . . ." ; j - 
. Yon ArtiwtoArba’i, director fa - 
environmental degradation conttol 
at the Environmental Impact Mao- - 


agement Agency, said local e£ftj& j 
bad controlled many fires, both* J 


cause of a lack of rain the smog feed 
yet to disperse- _ -hT- : 

Indonesian satellite data shewed . 
hot spots, most probably fires,cea^ 
centrated mostly in southbfa: 
-Sumatra as well as central, aad 
southern Kalimantan on the In- 
donesian side of Borneo. (Renter*} 


China’s Old Guardi 
To Visit Hong Kong : 


independence or formal independence. 
Mr. Tang said bluntly that the 


mm 




SINGAPORE SOUP — A worker eating lunch Thursday with the city 
behind him veiled in haze. Smoke from forest fires in Indonesia has 
pushed air pollution levels in Singapore past the unhealthy mark. 


Mr. Tang said bluntly that the 
Chinese government cannot deal with 
Mr. Lee. 4 ’For foe next two years, while 
Lee Teng-hui is in office, it won’t be 
possible to solve this Taiwan problem.” 
Mr. Tang said. 

Meanwhile, though, policymakers in 
Washington and Beijing _ worry about 
what Taiwan will do next 
Despite China’s more conciliatory 
tone toward foe United States over 
Taiwan. Beijing still seeks U.S. assur- 
ances. 


HONG KONG — Retired 
Chinese Communist leaders. wiH 
tour their newly regained region, pf 
Hong Kong to see its progreWfctij 
their movements will tie fg$|! 
secret, foe Hong Kong government 
said Thursday. . ’ — 



mum* 


SffiSrT SSSSSB: M-rWan ' /«<*/ »*« 


WE’VE WITNESSED 


THE RAVAGES OF MALARIA. 


MENINGITIS, YELLOW FEVER 


AND DITHERING. 


Hun Sen Rejects Pol Pot’s Genocide Denial 


control on July l after I56yea#as 
a British colony and is now a spe- 
cial capitalist region of China with 
far-reaching autonomy. 

The spokesman did not reveal 
foe names of Communist Party vet- 
erans who would crane to Hong 
Kong, hot local news organizations 
have said that up to ’30 veterans 
might visit, including China's 
foimer ... president, t . Yang 
Snangkun. (Reuters) 


1 ‘ •** 



Reuters 

SUtMREAP, Cambodia — The Cam- 
bodian leader Hhn Sen rejected a state- 
ment by foe Khmer Rouge leader Pol 
Pot that he was not responsible for gen- 
ocide, and said he hoped to arrest him 
this year. 

“Why do we need to state that Pol Pot 
denied killing people? The people who 
are present here are the remains of Pol 
Pot’s kniing," Mr. Hun Sen said at a 
news conference Thursday in Siem 
Reap after meeting with King Norodom 
Sihanouk. 

Mr. Pol Pot was unrepentant in an 
interview with the Far East Economic 
Review last Thursday .and denied that 

more than one millin n ramhfvttflng 

of murder, disease at overwork during 
the 1975-79 “killing fields" regime. 

“To say that millions died is too 


much,” he said in foe interview with foe 


magazine. “My conscience is clear." 
Mr. Pol Pot's former comrades de- 


Party Cracks Dotott 


posed him as leader of the Khmer Rouge 
guerrillas in June after a bloody split 
among its top leaders. He now lives 
under house arrest at foe Khmer Rouge 
h eadquarters at Anlong Veng in foe 
northern Cambodian jangle. 

Mr. Han Sen said senior military of- 
ficers had told him they thought it pos- 
sible to capture Anlong Veng. 

4 T hope we will arrest him,” Mr. Hun 
Sen said, “perhaps by foe raid of this 
year." 

Other Cambodians, who lived under 
foe Khmer regime, also expressed dis- 
belief and dismay that Mr. Pol Pot felt 
no remorse for foe death and suffering 
endured during his Maoist-style rev- 
olution. 


’arty 

hi n 


On VietnamMedia 


HANOI — Vietnam said Thurs- 
day it had issued instructions to 
state media demanding adherence 


>rang in- 
accuracies and revealing state 
secrets.. Li . 

The official Vietnam News 
Agency said foe directive, issued at 
foe Politburo level, stressed foe me- 
dia’s role in forming healthy public 
opinion. The agency said it criticized 
newspapers for bowing to commer- 
cialization and other influences of 
the market economy. (Reuters) 


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on October 31 


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THE INTERMAIIKET 
Continues 
on Page 6 































J lj* V&fi 


B 




'^^eHsm’g Political Battle 
r " ' ^narls Tax-Reform Plan 


I ',*1 . 

u.„t 


ByDavidHtiffn^ 

Pom service 


‘ ' MOSCOW — Presi^n, D _- 
■: Velisin's ambitious tffm , 0 

■ Ruaias limping taxation system hS 
Un toown into confcion by his “ 
.• rent attempt to defxise a political chat, 
lenge to him by post-Soviet Comma- 

; jKi^ n r ma - ,he,owerhouse 

■ ; Tax rcfomi lies at the heart of Mr 

Yeltsin s drive to heal Russia’s publte 
- iuianccs- But the reforms now seem to 
V?. ve b f* n ia ^bo by the com- 
plicated legislative negotiations on otfa- 
.. tr issues. 

i Members of the reoreanized rv»m_ 


\ Ll nuni ? *eir allies, who have 

'l« ini y. jpeen battling the government over pro- 
. 1 > % posed budget cutbacks, threatened last 

r M/l I ^ ■ |veek to call fora vote of no confidence 
in the Yeltsin government. 

* They backed down this week after Mr. 
Yeltsin agreed to symbolic concessions 
. j- such as more legislative oversight 

over public television, periodic Kremlin 

. round-table meetings on disputed issues 
. ' * • • in«fc a new government-funded Parlia- 
mem newspaper — while rejecting (he 
Communists’ main demands, 
i But at the same time, Mr. Yeltsin 
■ threw a cloud over his tax-reform plan 
I- the revenue base for the 1998 budget 
‘ j— by threatening to withdraw the ex- 
Uting version of the legislation from the 
. lower house, the State Duma, a warning 
. (le made in a brief letter to Par liam ent 
• I On June 19, when the proposed tax 
. ' tode cleared the Duma on its first read- 
ing fc- the initial step toward adoption 
. J — ?Mr. Yeltsin hailed the step as “a 
great victory for us.” 
i Since then, opposition to the leg- 
islation has mounted, partly from die 
. , , centrist Yabloko bloc, and Mr. Yeltsin’s 

hi \ 1 , 11 , 1 .. fefqrm team has hinted that it might 

... *• reek to win approval for only ports of the 

I'?; //.,r i tofc. 

i The government reformers, led by 
First Deputy Prime Minister Anatoli 
phubais, have said that tax overhaul is 
desperately needed and that it is one of 


Yeltsin leadership’s top priorities, 
the legislation would restructure the 
archaic patchwork of Soviet-era tax 
laws, slimming down a total of 200 tax 
measures to afoot 30. 

Tbe new top tax rate for individuals 
would be cut to 30 percent, down from 
35 percent, whilepersons earning below 
the equivalent of about $10,500 a year 
would be taxed at a rate of 12 percent. 

More important, many specialists say 
that a new code is needed to restore the 
tax base itself, which has crumbled in 
many areas. 

Tax evasion by businesses and in- 
dividuals has devastated Russia’s pub- 
lic fin ances, leaving teachers, nurses, 
nuclear-plant workers, law enforcement 
people, pensioners and thousands of 

Others nn pairt 

Last year, Mr. Chubais tried to force 
major companies to settle the back taxes 
they owed the government or face bank- 
ruptcy. 

But he acknowledged recently that 
government revenue from taxes con- 
tinued to fall far below expectations. 

.The result has been drac onian budget 
cuts, often by 50 percent or more of the 
amounts approved, and bitter conflicts 
among the interests and regions com- 
peting for what is left 

Parliament is now debating the 1998 
budget, which is predicated on enact- 
ment of the new tax code. 

But Mr. Yeltsin’s message left it un- 
certain whether any portionof the bill 
would get through the Duma before the 
□ext fiscal year. 

Parliamentary experts said it was not 
even clear whether, or how, the gov- 
ernment could pull back such legislation 
after it had already cleared a first read- 
ing. 

Bills require three readings to pass 
the lower house, which is do mina ted by 
a combination of Communists and Rus- 
sian nationalists. 

Nor was it clear whether Mr. 
Yeltsin’s intent was to slow die tax bill’s 
movement for some tactical purpose — 
or perhaps to gain time to build a con- 
sensus in its favor. 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


EUROPE 



— 

LslIiiBilifMIuun 

BAD MEMORIES — Hungarians waving post-communism flags 
on Thursday, marking the day 41 years ago when the nation rose 
against Stalinist rulers, drawing Soviet tanks into bloody attacks. 


Prime Minister Viktor Chernomyrdin 
told ihe Duma Thursday, “The gov- 
ernment is ready, for any compro- 
mise.” 

Late in the day, a joint panel made up 
of members of Parliament and repre- 
sentatives of the government, confer- 
ring on the budget, urged that the tax bill 
not be pulled back. 

Instead, the panel suggested that the 
legislation be advanced to a second 
reading, at which time it could be 
amended, rather than starting the pro- 
cess all over again. 


PAGE 5 


Sweden Keeps Its License 

EU Upholds State Monopoly on Alcohol Sales 


■ Duma Support for Tax Action 

Gennadi Seleznyov, the speaker of 
Russia’s State Duma, who is a Com- 
munist, said he favored continuing work 
on the Yeltsin government's tax-reform 
program. The Associated Press reported 
from Moscow. Mr. Seleznyov said the 
Parliament's leaders would make a final 
decision next week. 

“In effect, taking into account the 
proposed amendments, this is a new 
draft of tiie code,” Mr. Seleznyov ad- 
ded. 


By Bany James 

Inurnatioiul Hi rjld Tribune 

BRUSSELS — The European Court 
of Justice on Thursday upheld Sweden's 
state monopoly on the sale of alcohol,, 
accepting the argument that it was jus- 
tified (xi public-health grounds but warn- 
ing that aspects of it were an impediment 
to free trade within the European Union. 

The ruling also has implications in 
Finland, an EU member, and Norway. 
All three Nordic countries operate sim- 
ilar monopolies. They use pan of their 
income for anti-alcohol publicity and 
treatment. 

"The Swedish retail monopoly pur- 
sues a public health aim, " the court 
ruled. “Its criteria and methods of se- 
lection are neither discriminatory nor 
liable to put imponed products at a 
disadvantage.” 

It said that retail sales through mono- 
poly shops and other state-approved 
outlets were legal. But ii said Sweden 
breached European law and impeded 
trade by insisting that only licensed pro- 
ducers or wholesalers could import al- 
coholic beverages, putting traders in 
other countries at a disadvantage. The 
court said Sweden could pursue its pub- 
lic-health aims without this restriction. 

A Finnish minister responsible for 
health and social affairs, Tertni Hunu- 
J untune n, told Reuters the decision was 
“proof that the European Union un- 
derstands that alcohol policy is part of 
our Nordic welfare state ideology. The 
decision enables us to conduct a na- 
tional alcohol policy based on our own 
national needs.” 

The court was asked by a tribunal in 
the southern Swedish town of Land- 
skrona to rule whether the alcohol 
monopoly contravened the EU's found- 
ing Treaty of Rome. Article 30 of the 
treaty bans “quantitative restrictions on 
importation,” and article 37 obliges 
member states to ensure that state 
monopolies do not result in commercial 
discrimination. 

A grocery store owner in Landsk- 
rona. Harry Franzen, challenged the law 
by selling wine in his shop in 1 994 for a 
brief period until the police stopped 


him. That was before Sweden joined the 
EU in 1995. 

Mr. Franzen has become a hero for 
many Swedes. He said that the court 
ruling was a “partial victory" and that 
he would keep fighting the Swedish 
government. Despite his popularity, a 
poll published in Stockholm this week 
indicated that more than half the pop- 
ulation wanted to keep the century-old 
restriction on liquor, while relaxing the 
rule on wine. 


Russia’s CIS Allies 
Criticize Yeltsin 

Rtuien 

CHISINAU, Moldova — Leaders of 
11 former Soviet republics criticized 
Boris Yeltsin, president of Russia, on 
Thursday for the failure of their post- 
Communist grouping and for ethnic 
conflicts in their territories. 

The Kremlin leader, apparently 
chastened after being put on the spot at a 
summit meeting of the Commonwealth 
of Independent States, said the CIS — 
formed from the ashes of the Soviet 
Union — would have to be completely 
reorganized. 

“There was serious criticism of Rus- 
sia.” Mr. Yelstin said at a news con- 
ference in the Moldovan capital, 
Chisinau, known as Kishinev during 
Soviet times, after leaders of the 12 CIS 
states met in a closed summit session. 

Of the 1 1 presidents present, six, in- 
cluding Mr. Yeltsin, had been members 
of the ruling Soviet Communist Party's 
Politburo. 

“Each noted its own role,” Mr. 
Yeltsin said. “But Russia, as chairman, 
is to blame for the fact that the CIS has 
worked irrationally and ineffectively.” 

“Russia is responsible for the drag- 
ging out of the issue of conflict zones in 
Dnestr. Abkhazia and Georgia and 
Nagorno-Karabakh.” he added, refer- 
ring territorial disputes in regions of the 
former Soviet Union, which disinteg- 
rated in December 1991. 






4 Priu.-t! 


I'.rrxl ;<:■ '■ 

i I ii 


!»>'• : ' »■ 


- - 





BRIEFLY 


Czech Foreign Chief ffhnts Out 

PRAGUE — Foreign Minis ter Josef Zieleniec, a fix- 
ture in the center-right government since it came to power 
in 1 992. resigned Thursday, saying he was fed up with the 
turmoil in his Civic Democratic Party. 

But minutes after Mr. Zieleniec made his announce- 
ment at a news conference, President Vaclav Havel issued 
a statement that he would not accept the resignation. 

The development comes as the Czech Republic is in 
negotiations for its inclusion asafMmembaratitebRMtfi - 
Atlantic Treaty Organization and prepares far talks on 
becoming a member of the European Union, Mr. Havel’s 
two key foreign-policy objectives. (Reuters) 

German Jailed in Asian’s Death 

FRANKFURT AN DER ODER, Germany— A Ger- 
man man was convicted of manslaughter Thursday and 
sentenced to nine-and-a-half years, imprisonment far the 
beating death of a Vietnamese cigarette vendor. 

Olaf Stuerzel, 30, attacked Phan Van Toan in January 
at a commuter train station east of Berlin, s m ashing his 
head repeatedly to foe pavement The vendor died in foe 
hospital. The state court said foe motive was anti-for- 
eigner hatred. (AP) 

U.S. Tribe Wins Whaling Right 

‘ MONTE CARLO — The Makah tribe of Washington 
State won the right Thursday to resume whale hunting, 
after a 70-year break, in a compromise grudgingly adopt- 
'ed by foe international Whaling Commission. 

* This means we can go whaling,’ ’ said David Sones, a 
: tfiakah attending foe commission meeting this week in 


T Before foe Makah, a tribe of about 2,000, can resume 
whaline, it can expect to face a gauntlet of .lawsuits by 
groups opposed to the hunt The groups said foe wording of 
. foe proposal was vague. (AP) 

EU Winters Down Chocolate 

STRASBOURG — The European Parliament voted 
Thursday to allow chocolate-makers to include less cocoa 
butter and more vegetable fat in their products and still 

^Ifoforective would allow cocoa butter to be replaced 
by vegetable fas up to a limit of ^ 

, Under the text, products currently sold under foe name 
chocolate in seven EU countries — A«*tn* 

Sweden, Portugal, Britain, Denmark ^d lrd^— wiU 
be able to be sold as such in foe 
and France had spearheaded , a cam^a for real 
chocolate to be made solely using cocoa butter. (AFP) 



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INTER-CONTINENTAL. 

Tioi'ei s and k shorts 

, . v . uja i • • ^ 

i— j-«*- 


In Serbia, Gypsies Become the Latest Victims of Nationalism 


By Chris Hedges 

New York Tones Service 

BELGRADE — On a hill above 
foe curves of foe Danube, 3,000 
mourners, many dressed in shabby 
overcoats and clutching limp bou- 
quets of flowers, listened to a moth- 
er’s plaintive wails erf grief for her 
young son! . ‘ . . 

Cemeteries in the former 
Yugoslavia have witnessed heart- 
breaking scenes like these before. 
The wars foal racked the region from 
1991 to 1995 brought much unnatural 
and eariy death. But foe burial Tues- 
day ofEtesanJovanovic, 14, who was 
beaten to death on Saturday night as 
he wenttobuy same juice, wasa stark 
reminder to foe 150,000 Gypsies in 
Serbia that the nationalist movements 
that set off foe ware are still virulent 
enough to claim new victims. 

“In the last seven years these na- 
tionalist movements have fueled all 
kinds of racial hatred,” said Mihael 
Siam, as he stood in the crowd 


around the white wooden cofirn. “As 
a Jew none of this is new to me. We 
just wonder when this will end. 

The Gypsies have no affinity with 
foe Croatian, Serbian and Muslim 
ethnic parties in power in the fonner 
war zone. Most of the Gypsies are 
poor, barely literate and work in 
menial jobs, hawking cigarettes and 
• toilet paper on street coiners or clean- 
ing car windows at traffic lights. 

In the last few months, with the rise 
of neo-Nazi street gangs in Serbia, 
there has been an increasing number 
erf violent assaults on Gypsies. A 
pregnant woman was beaten to death 
10 days ago as she walked with her 
young children on Skadarska Street 
in Belgrade. Gypsy leaders say they 
have reports of attacks every two or 
three days in foe capital. 

“The Serbs hate us because we 
are ugly,” said Berisa Ljuan. 18, as 
he stood near foe melting puddles of 
yellow wax from foe spent candles 


lit along foe sidewalk where the boy 
died. “We are dark. They hate us 


because we are not Serbs. My 
friends and I do not walk alone in foe 
city now. We always go out in 
groups of four or five. " 

As Mr. Ljuan spoke a stocky 
woman in ared overcoat and clutch- 
ing a large black pocketbook pushed 
through the crowd on the sidewalk 
and muttered “Damn your Gypsy 
whore mothers.” 

Aleksandar Jovanovic, 38, foe 
boy’s father, sat on a small bench 
with several friends in foe small 
landing near his apartment. He said 
that as a street sweeper who prowled 
the dty at night be saw this coming. 

“Most of foe street sweepers in 
the city are Gypsies, and there are 
attacks against us now nearly every 
few days,” he said “The gangs 
grab ns and light our hair on fire, 
beat us or strip us of our clothing and 
make us walk home naked 

”We file complaints to foe police 
and they do nothing because we are 
only Gypsies. If foe police had re- 
acted my son would be alive.” 


Two 17-year-old boys who were 
reported to have been involved in 
the beating, which included smash- 
ing in Dusan’s skull with a section of 
drain pipe, were arrested — a rarity 
in such cases — and have been 
charged with murder. 

The beating took place in front of 
a small store where foe boy had been 
srat by his mother to buy juice. 
Some mourners tried to put a sign on 
foe window calling for people to 
boycott foe store because those in- 
side watched foe attack and did 
nothing to help, but the sign was 
swiftly removal by passing Serbs. 

The killing has pushed foe nor- 
mally complacent Gypsy organiza- 
tions to protest and Tuesday, fol- 
lowing the funeral, several thousand 
Gypsies marched in the city center 
to the federal Parliament Many in 
foe Gypsy community said they 
were growing tired of foe open rac- 
ism tolerated by the state. 

“The discrimination begins as 
soon as our children enter school,” 


said Dragan Stankovic, who heads 
the Gypsy community. “Gypsy kids 
are nude to sit in the back rows or 
sent to special education classes. 
Many are tossed out of school. They 
arc frequently ostracized and inqui- 
red by other children and teachers. 
Our young people cannot find jobs 
and our complaints to the police are 
ignored. We have always lived as 
second-class citizens, but we are not 
willing now to die because we are 
second-class citizens.” 

The two-room hovel where Dusan 
lived with his parents and sister was 
swarming Tuesday morning with 
distraught visitors. On the street 
earner outside die apartment, where 
foe boy died, people lit candles and 
talked quietly. When it came time to 
cany foe boy’s coffin down foe nar- 
row stairs for the trip to foe 
cemetery, the boy's mo titer, Milica 
Jovanovic, roused herself and broke 
free from the arms of her brother. 

“Dusan! Dusan!" she caUed out. 
“This is your mother!” 


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PAGE 6 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


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sGtaofc. Tewb. saiimfcg . and aa mfag 
facfllre tochjdfld. Short^ ferertor® item 
lease avaSabte starting at Si, 600 per 

mtiLAnUfohnedteeV. 

CA ter a are* 



TOURS 


77f.l.Vfi.4Gni\f» IN f‘tRlt;s;K|} 

' ^ ' j. 'j ii TiVjr . 'kFnir 


Germany 


Bob Reece 
SWJ29M8SQ 
P10J28WM1 (b 


DUSSaoOMF, near topon, kteal for 
business pmtia, 2 rooms, 42 sqm. 
sharer. Mftance +33 (023547 743Q 


PHIATE BLEW THE HflfWA KEYS 
Twenty minute Wleopter ndehom 
Iftnt 5 minote bo# rtte Pwaoicwp 
Part Grea Houwu CnttMtOafti 
mettr, nafi* rentals. Ctoftred Key 
Blorr Mid USA 


KANHATrAN LODGINGS, NYC Shod 

stay luray wmtmentt StoanorBlB 
reulstry, many locations. 
Tflf 212-475-2090 Ffoc 2124773421 
imrerereolawtototaBBcom 


BflEATHTAXHG WEW OFNEWYWK. 
20 n. stes wot Cwbal Prek i c«r. 
Unixwsfy tomstot p«to to rete 




Holiday Rentals 


Caribbean 


ST. BARTN&EHY.r.KL. OVER 200 




Holland 


WESTPORT, CT. A great luxurious 
house, mht contfldon, bu§dar J s own. 
state area. 4 tjahooms, 4 1/2 balta. 


to+xmStonfag, laia room wffli Wl 
csBogs, Wmmb Wchen, pool, 2 fire- 
places, Har-Tni teroris couL exoeHeni 
schoote. near town beach A gof, la- 
ctates hvteare, 55 nfo. oonmute to 
NYC, 5 mto. to natoad, min to part- 
ways, amaUe kanad^y, utoimishad, 
US Sil^OQ per mdh, 1-3 year teen. 
Cal for appoWnw* 2Q3-2Z7^8l USA. 






NYC FUWSHai APARTteBtTS. 1 
mto « 1 rear. Great Locations. CaS 
PaMCWqut 2124483223, Fac 212- 
4484X226 EM* toxsvtwtiacilcom. 




Lebanon 


HOTEL AL BUSTAN. East d BetraL 
5 star dBfeoa. Bseptonal txafion. secu- 
Ay, oomfort, §oa cotstoa, conventions, 
business services, satelte TV. 16 mm 
tranter from airport free. LfTHL Fac 
(961} 4372439 1 (+33) (0)1-47200007 


MjW | 

toe 


BotsrellMta (2158J&2837 
THE CORCORAN GROUP 


FORT LAUDERDALE, FLORIDA 
Exctostee waterfront estate wffli 700+ 
feel of water frontage- TOO fool yachts 
acami in da te fl, home hasal the jneni- 
Bes. Just reduced to USS6,08S,00a 
Cal Urn Sued, agent RSWX Partoere 
954-3963977 USA or E-roaB: 
obuodOllwiBLnei 


NYC CSTTRAL PARK VIEWS Maofl- 
ctert 2300 sq 1 candornbim. 23 fed 
roam, 3 baboons. Mm. rtninq CPW 
1 «7a Z batorfes, W tour doorman. 
US S&285M nagottova Owner relocat- 
ing. Tet 2128801970 fac 2125010660 


lli'Kltf Ilk 


KB 

TZ&FTi 


InlQff 


THREE CHARMING 
PARISIAN HOTELS 
EACH WITH A COURTYARD 




PARIS 16th 

16 AVENUE GEORGES MANDEL 


IE'' 




PRBTIGIOUS ADDRESS 'm PARIS 

a \fot4 

(private lane) ; 

LUXURIOUS RENOVATIONS m 
HBTORJCALTDWNHOUSE 
1 20 sq.ro. apartment 
160sq.ro. apartment 

Tat + 33 CO 144 55 SO 00 
■Fox+33 p 1 42 GO 55 91 


B J ri i i fillkM] 


Paris Area Furnished 


200 m from Trocadero 

15 high class appartments in a new prestigious 
building giving onto two gardens. 







Paris and Submbs 


L-vv-r ' 

V'.vX- 1 . 


Garden, terrace, coctoti view. 

IY1 220 sqm + 300 ton ganfen. paria^ 
B: 230 sqm * 70 sqm terrace. iTfocal 
V; its sqm 4 SO sqm taace je Srtxtas 
W 4 nm + tenace. Qton iBh cent 
CAFUOERE 

TB. +33 PI 4401 0500 Fto 4461 0866 


8 tan from BAflSCON 
MACJBDA STYLE PROPBRY aeduted 
to 6.000 sqm part matoottig Setae 
nvn niiwrmindahiteconaKtiritii 
Laon Gwahtar baaeni (1S6^, 
toga receptors, 10 bedrooms. 
Ctn&ef stage, garage lenm. pool 
MUST SEE - BsmteBi 
Tet +33 (OH 64 71 DO 83 office or f09l 
64 S4 07 05 hone. Fax (0)1 6471 0094 


PAWS 8ft - AVENUE HABCEAU 

RECENT HIGH CUtSS BUU7NG 
Nee 92 sqia. m m tong 
+ 2 baioocns. 7*1 mr, on avenue & 
gafom. balmy, lenace. opro view. 

Sun. parttog. RMWB0 

Tta +33 Ml 43 55 00 44 
Fn +33(0)1 43 5541 38 


MB a* tin PiwidM KEW0JY. rarer 
afis apstmem, high dass budding 
100 tqm, 4tb floor I40B. 3 rooms. 2 
bads, equipped Uchen, btamy, cafar, 
toge pafiw. FF 2375M. Vist on spot 
Weiwsitay 22 aiO30 to 15pm Fm 
a, Storem 25, Sinter 26. *wby2?, 
Tuesday 28, Friday 31, SUM# 1/11, 
Sitaiy 2 ft 1 and Mondq Y 11 vaou 
ipm and 3 m ■ 6 pm, see pdea 


A MUST M PARS 

230 SQJU. of high dess, charm 
and refinana* + 40 sqm landscaped 
trace, forma ham. 

PEWt BATON 

M +33 (DM 4704 5SS ftx <704 2300 



HE SAINT LOWS 
PrestUM I7B cent fab property 

matootaig Sene - tooEng 1200 sqm 
hcUang cratyafo qrartmerts. 
BoesonaL rare, non vacare. 

Tel +33 («1 5542 1814 Fax 5542 1815 


CROBSYSURSHNE 

it new bouses 3 5 4 bedoam s , wrth 
ganten, near cento and HER. high ctess 
Store. From FFIjaioto 
to LMW Tet (0)1 39 76 53 56 


*MIW KHE 4 LE DE LA WE 
BeetoU duplex + mzatme, 110 sqm. 
IBh cal bubfng, bmorkad area 
4fc and tejjoor. FF2A30.OO0. 

Tel +33 (0)1 AW 0303 Rn 4707 0440 


HOUSE IN PARIS taring south in 
EXCEPTIONAL SURROUNDINGS, on 
gresnoy. 100 sqm, 2 betanre asef- 
M crndttm + private coumod + otar. 
Bulftig of 1 more brel possUa. FF3M. 
Tel +33 XQl 45 80 46 40 Video natotto 


ISIti, LOHGCHAKP-VICTOR HUGO, 

■el baled. Bright 4li floor apamnant h 
ehaneto btortm. double tang roora. 2 
bertoono (poss& 3L HdavbreaWaa 
room & be*. Mahfs non & ctoar. 
TttfSOfXXL. Tat (Q)1 44 05 M 50 


N». NEAR FDCH 
BeauBU epamait Double tong. 

3 bedrooms, 2 baths, 2 ms test, to 
«w fev Tq earner +33 (0)1 «Q2 2135 


IE ST LOBS -EXCEPTIONAL 
LOCATION, 5-rocm bataeni. as new 


Tib BAC VERNEUL Mir SEK, 
213mm 54 sqm. 2nd tor, 
Wqii. charm fflAtitoa. 
NJA +33 891 43 36 75 32 


15k METRO FELIX FAD RE. Studs 
Wto kSchenate / breddast bar. Luge 
baflnom. Light and -cafan in rtos area. 
Tfll Owe +33 (0)1 3052 90 77 /R 


BA AVE NOTRE DAME DES CHAMPS 
2-rooci « sqm. befo, teauful Hausx- 
maw hadinj. 2 fireplaces, sonny ah 
tor, cefar. Lw «ham FFLU. Omt 
Tel +33fl)|145488BI0 fat +34-I52T7483 


RARE - PARS 7ft • fa CHAMPS DE 
MARS. House fte aparuneu wflh 
oenten. PRICE: FF8.200.000. 
F GFBELLE (0)1 45 55 27 27. 


NOTIff DAME AREA - Sptafid 
vim on Seine. 120 sqm web 
2 bedrooms. FF5J Utaxi 
FO Tet +33 (9)1 46 34 71 71 


HARE, T7WAT1GIIOLES 6th Jofflt . 
84 sqm. aMh (eras, 80 sqm. apart 
om. qtet, sun, uw^ redone. Marble: 
ngh tea fSSig. Mq, bedroom amm- 
can tattwn. bath. WC, gae treating, 
netptaie. cabr Al commodteB near- 
by FlfflOM. (0)1 4B2S 6422 - message 


SOUTH PARS, CHARACTER ESTATE, 
nw RER. on prestigious feted arau. 
Sqatt sene, eady cantuy biddog, 618 
sqm pmnJs. Top cks, 5 bedrooms, 
ate. pona. 6 mart*) beptacre MUST 
SE RMt Tel +33 ( 0)1 48 84 B6 57 


PARS 5P, KAR PANTHEON, drenn- 
og sheet beatti 85 sqm. apartment 
fa Apta: Top floor. 2 bedrooms, fcifon, 
< targe bam. equipped kflehn, bums. 
Very bndl FF2^5O,00a Tel. +33 (011 
40 51 09 18 fac Irt Kahn 42 13 46 85 





HOTEL DE L'ABBATE 

Seint-Gwrmafoi 

10, rw Cssaotte A 

75006 Parta M- 

TtaL: (1)4M4w38.11 . 

CroMAboM / 

Fax: (1)45^6.07^6 1 

An 18th century towhouse between 
courtyard ahd garden ottering a raflnsd 
mWureottraittoryanc! nxxtem comfort 
In the heart of the lasfikmahle Left 
Bank quarter, 44 rooms, 4 of which are 
suites witfi priuato tenaces. 

SELECT HOTEL S- 

1 H de ta Sorbonne : 

75005 Paris 

TeL- (1)46^4.14^0 Jr"* 
Fax: (1)46J4.51.7B 
E-mallJtsNact HoWftiwnadouJr 
Contemporary elegance in the heart 
of the Latin Quarter. 67 rooms +- 1 
duplex suite offering the perfect mix 
of modem comfort and Old World 
charm. The interior garden and 
fountains add a soothh+g touch to 
this special hoteL 

UNION HOTEL ETOJLE 

44, rue Hamenn, , , . 

75016 Paris s\w/A 

TeL: (1)45^3.14^5 
Tlx;611384F - 

Fax: (1)47 55 94 79 ‘^■flSU 
42 fame, pretty rooms and 
resWenteJ apartments overtooWoa e 


private garden on a small, calm 
street near Etade. The perfect spot 
for business, entertainment and 
shopping. Private bar. Excellent 


,. , Paris. ^- 5 ' 6 >,'.!l 

Stepping out of your hotel nn the left there's the TbtSdOv de 
FOtMon, the luxembourg gardens and, just behind 
Montparnasse and its cafes. On Use right, there's 
SatntGermatndes-Prds, the river Seine, the net r Orsay 
Museum, the Jjouvre and a few steps further. Bvaubaurg _. 
72m OdSonHOtet, 33 cbannJrtg rooms hi the heart of Paris, 

Odeon Hotel 

TeU + 33 (O) X 43 25 90 67 
. Fax: + 33 (0)143 25 55 98 


JpVf- 1 ^ ra’ 

f m m ^ 


B0TBL8£an»NCEHBNllIY 


MOTEL 

MEftBUlV*** - -s 

Between the Seine and the Pantheon, 
in the heart of The Latin quarter^ a stones 
throw from the Luxembourg park. 

Charming rooms and apartments 
(fof up to 4 pec.) giving onto* square, 
equipped with kitchenette 
Gaeal for long stays). 

Preferential rates for laagaUn/ 9 . 

Figures in the “Charming Small Hotel Cnwir" ] 
SL t des Benurdms, 73)05 fab 
Td; ++33(0) 1 44 41 31 Si-Fax; +3309 14fi 3M322 ' i 
M. RER St Michel Notre Dames -Parkfegnefiby. i 


Tel: +33 (0) 1 42 61 09 39 - Fax: +33 (0) 1 42 60 40 84 

In the heart of old Paris, near St-Grnnaio-des-Ptes and a short walk 

and the Louvre. TTie nfiixd own- 

wv+w.p^^ c ij m ^/fr^^q ten ^ .(MAmiweiriwhBnl 


BAINTL 


RUEL HAUHISON, BtsttM l»u» on 

Bhoota. Very good andtion. FF59 IL 
Td +33 fflt 4S67 B8S5 Fta 4567 7285 


ST CUJUO-PARK bawtox apttnwt. 

rt»UeMig.3bahiorto l tai>ralcoo- 
rtxnram. pPare garden, nor al nm> 
««* Anericm 8 Gann® schools. 
FF2.1M. Owner +33 47 71 37 11 


*UB1Y - BAHRES, 25 squL STUN0 
wft nxl antetv gnndfloor Ndh etas 
htow wtm gumton A an arty, qutat 

msaSoa oviner * 331^1 «56 3707 

far +33 (tfll 45612596 home 47571400 


MVAUJEMHAWS DE MARS, owner 
kIs eparneal 50 sqia. 7ft tor, ML 

newly redone, amazing view on EKd 
town. Td +33(016 B1 31 39 07 


N PARIS, view affd nwer Trocadero 
ate Umpanosn, double apesue, l>* 
eg. 3 bedrooms, afl cartons FFijM. 
T« +» (0}14Q59 8202 (ORfegs . 


7ft Hu BAC, about T5 sya, 15 beta gn 

Mityam hfofa ceiogs, beans, chanum 
AW S42K Teds +33 ffll 435 4^ 


AYE KEKS HAKIM, locorifias 230 
gm, id Door, tunny. 3 bedrooms, 3 
PUyg- W owner dSn tuns 
t 33 (0)1 53 B» 10 18 fat 53 81 16 17 


BUY OH HBIT high dass quilnwfe 
Td me ma you wan, I w6| do ttve 


YEW SOtE, W® dais S6 sqm, 4tfi 
tisuw Iraq, 2 bedrooms, 
fl^SXUDl +33 (DM 53 70 85 16 


Commercial Premises 


PARS 9ft Rue de Idai 110 sqm office, 
dess, grand tor. csfen, sunny, gas 
rental heaOng. dgknfe. intaprane, 
cadaher. TeHn +33 (0)1 46 44 22 99. 


Ltntaj fa rad a tumUnt 
sputum in Ms, 
short or km him ? 
Jus calls: 

T*U +33 Wl 40 M 82 51 
fac+33 ;*1 40 84 M 88 


Embassy Service 

YOUfl REAL ESTATE 
AGEWTW PAf9S 
Tet rf3 (0)1 47.203005 


AT HOME M PAHS 

PARIS PROMO 

ApMmenls fa ret tarnished trim. 


fata PxOI-4901 1020 
et +33 (OH 45 


CAPITALE * PAROB1S 
Hancfafcted qurty apareaanta, 
to das Pare and stuts. 
Tet +33 mi 42 68 3S 60 
fac +33 (qi 42 68 35 61 
^hdpyoebesti 


JB8U.Y-WS0JI.wlli dept re» 

Hon ipa ns io chammg towr*oaM, m 
mews, dose to raft & 
t^Sr-tefflinaL FFB^OO + dfires. 
Td +33 p)1 4745 3672 JW lOanrtpra 


WFIB MONTMARTRE fa CSilte house, 
2 room na + gotten + tunny, so sqm, 
y®» raw. mjmrn. u 
mges. Td Daw +33 Epyt 42782S0 


ETROHeMtteVi8e,95 


HOTEL ★ 

Rektis Christine 

3, iraOrietaw ■ 75904 MH 
TM. 01 40 51 MM 
fan 01 MSI Mil 

In the canter of St.- Germain-das- 


★★★★ HOTEL 

PavfOonde la Heine 

* It, plot* AraVrafra -75003 


TALOIMMIO 19 
tax 01 M09 1950 


-tZ .i.T- J r « rf" “ 1 f 11 ^u*>wwxnr oc museums, me rKJIEL 
SS^dottfer.offare ypu the PAVHiON DE 1A RONE proposes the 

50 lronquirrtyofits 55 oirSEJed 

rooms ana audeDcas oiwm onto a rooms and J — 1 — - — 


courtyard. - 


en or, a Howe 
tehoieJ parting. 


nng onto □ 
courtyard. 



THE SAINT JAMES PARIS 

laom “ *• santja*® cujb h 


nektms*, mi, sewnq, jocuzn and private cor 
hy lfs cxice ond never stay anywhere else. Rooms 


al our guests 


Mw« 43 Aw.Inbm 
73116 PuSi 
T«Ls 01 44 OS tl 01 
faooOl 44 05 81 S3 


Scant (Dominique 


42 roe St-DanWnique, 75007 Paris 

TeL + 33 ( 0 ) 1 47 05 5 1 44 
Fwc + 33 ( 0)1 47 05 SI 28 

Between the Bird Tower and 
Les Invalides, set in a 

convened convent of die I Slh 

wit, with a flower died yard 
and service 

wan its 34 charming rooms, 
witn private bathrootn, T.V. 

- Cable, mini -bar. telephone.’ 


atala 




forte bext of fail, between Les Ckuopi- 
wyifci nd Tbe Lome ■neon.uua Sen 
DOai Ae Open «d ifag flf 

RtowergSr-Hoiiorf. * 

fa ownfanahle ram jLlj 

tow ar-candhknng 

an) EC Hand poof. fi ffifcrER MMiln 
"Ftacil ittcs/serviccs 

W hwJry- aweieqe ittQtauMet 
Specta wdtqme to FfatoJ T»wr nafar'T 




DINING OUT 






“eamasr Included (Min. 1 nights! 

‘ 7500 7 PARIS 
+53 (0> 1 42 60 73 79 
__fa«+33f01 liov+new 



GEORGE I LAUfBCE GENDBJUN, 
are pnuri nd tonyfo amwmca me 
bbth of me* aon^SAR an SepL 19 
1897. TIh whole faroly fa rfafag gnu 


ffiANCE: WeatoxJ 


fob Area Unfurnished 








































































PACE 7 




INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 



* Security Forces 

Keep Watch 





tp vTir.. . 







TELS . A\ .A 


* .1. rih-df Hklm.. 


i OJ i\ 






I 

t 





[enans 

||| G° to the Polls 

. Til * Associated Press 

{ ALGIERS — Security forces kept a 

\ ^ discreet watch on polling stations while 
Algerians voted Thursday in local eler 
»£*• I- four 

■ m blamic revival that e*- 

ti. ploded mto an insurgency. 

k fire*. v ote for local and 

; • reponal officials since. 1991, when die 

. .. Islamic Salvation Front swept into the 

■ political spotlight with a reWnding vi£ 
toy in municipal elections, takingroarlv 

, . hatf of aH city halls and all majracitieS. 

But the military-backed government 
ML canceled the second round of the elec- 
omis in 1992, and the Front went on the 
- offensive. The now-banned party called 
, for a boycott of the voting for 15,000 
]ocai ^ regional assembly represen- 
taoves. More than 84,000 candidates 

were running nationwide. Results were 

_ not expected before Friday. 

- White the security forces battle ls- 
lanuc fundamentalist insurgents, Pres- 

- idem Liamine Zeroual, a retired general, 

■ has undertaken a vast restructuring of the 
‘ nation’s political institutions that, under 

a Veneer of democracy, has enabled him 
^ — to consolidate his power. 

T «• > The pro-government National Demo- 
", crane Rally won legislative elections in 
;• . JjUPe, taking 157 of the 380 seals, al- 
: i; ... though international observers noted nu- 
merous cases of fraud. 

The campaign was lackluster, dom- 
inated by fears of a high abstention rate 
among the country’s 16 million reg- 
istered voters and assumptions that the 
scores would be skewed by fraud, as 
many claimed about the June elections. 
The Interior Ministry said turnout was 
[ — 55:7 percent at 6 PJVi. and voting was 
| extended in some areas, 
i Soldiers in ca mouflage guarded the 
• decrepit school house that served as a 
l polling station in Eucalyptus, at die start 
» of the so-called Triang le of Death just 
jj south of Algiers. The region has been the 
i focal point of die insurgency that has 
I killed at least 60,000 people in six years, 
j The violence wracking Algeria was a 
favorite theme of many of the candidates 

— 10 of whom were killed while cam- 
paigning — and the do minan t reason 
cited by voters for going to the polls. 

“I’m voting above all for safety, so 
that my children don’t die with their 
throats slit,” said a 36-year-old school 
teacher in Kouba, a suburb west of Al- 
giers that once was a rallying point for 
the Islamic Salvation Front 

Nearly half die winners will replace 
appointees of the military-backed gov- 
ernment that dismissed the Front’s rep- 
resentatives in the crackdown on fun- 
damentalists in 1992. 



ASIA: Plunge in Hong Kong Stocks Drags Down World Markets 


Continued from Page 1 


recession if interest rates remained high 
for a year. 

The head of one local securities com- 
pany. who asked not to be named, said at 
least five clients had been moving to sell 
real estate as the market has crashed this 
week, in an effort to raise money to meet 
margin calls on their stock holdings. 

When investors buy stocks with bor- 
rowed funds, they make money by 
selling stock and paying the loon back 
with pan of their profits. But when 
stocks drop, investors must raise extra 

_ cash. If markets plunge violently, in- w 

pensive to finance a new apartment in vestors often raise money by selling hard aid Tsang, admitted that port of the ter- 
what is already among die world’s most assets such as land. ritoiy ’s $88. 1 billion in fordgn-currency 

The outlook for property 


strengthened against the U.S. dollar. 

But Hong Kong is paying a high price 
to defend its currency. The steep increase 
in short-term rates is designed to keep 
investors’ money in the bank and stop the 
selling pressure on the Hong Kong dol- 
lar. But economists said the tenitoiy is 
staring recession in the face if high rales 
continue for a prolonged period 

The other hazard facing Hong Kong is 
a plunge in real estate prices, because 
high interest rates make it far more ex- 


dollar is at risk of falling 30 percent. 

The pressure on the currency has 
come because of a string of devaluations 
across Asia from Hong Kong’s major 
competitors, which have made the Hong 
Kong dollar — and property priced in 
Hong Kong dollars — look relatively 
expensive. 

“I think the Hong Kong government 
will stick to their guns all the way,” and 
defend the currency peg, predicted Ma 
Guonan, regional economist at Salomon 
Brothers. 

Hong Kong's financial secretary, Don- 


Ag««Fa 


President Liamine Zeroual emerging from a voting booth Thursday. 


expensive cities. Hongkong R ank, the 
territory's biggest, raised its prime lend- 
ing rate by three quarters of a percentage 
point Thursday, to 9.5 percent. 

“Higher short tom rates are going to 
be here for six months,” said Robin 
Hammond, head of research at Asia 
Equity. He predicted property {sices 
could fall by as much as 25 percent 
“This will have a serious impact on 

h anks * margins and their w illin gness to 

lend,” Mr. Hammond said. 

Andy Xie, an economist with Morgan 
Stanley, said Hong Kong could slip into 


is worse 

and worae,’ ' said Alan Dalgleish, a prop- 
erly analyst at SocGen-Crosby Secu- 
rities. “There seems to be no sign of 
bottom fishing. On the face of it there’s 
plenty of value, but from the point of 
view of overseas institutional investors, 
there’s not a lot of interest in property 
companies.” 

At the heart of this accelerated market 
plunge is the worry over the Hong Kong 
dollar. Slocks that may look cheap after 
falling so far may not seem like bargains 
to foreign investors if the Hong Kong 


REGION: A Southeast Asian Downturn Could Stir Ethnic Tension 


Continued from Page 1 ' 

vestors were “now going to demand 
much higher standards of transparency 
and of legal arrangements than they de- 
manded in the past.” 

Analysts said that voters, led by the 
region’s emerging professional and 
middle classes, were also likely to be- 
come less tolerant of any government 
mismanagement and graft 

“What also has to be established by 
Southeast Asian countries is good gov- 
ernance,” said Justxf Wanandi, chair- 
man of the -supervisory board of In- 
donesia’s Center for Strategic and 
International Studies. “Because without 
this, the economic fundamentals cannot 
be strengthened and the government and 
its policies will not be credible. ’ ’ 

He said dial fast economic growth had 
helped reduce poverty in the region, bra 
had also created new inequalities as 
some groups got left behind in the race to 
get rich. 

“In absolute terms, the percentage of 
people below die poverty line has de- 
creased dramatically to less than 20 per- 
cent” Mr. Jusuf said. “At the same 
time, the rapid growth of the last decade 
has created new discrepancies, because 
small enterprises and traditional traders 
and businessmen have been left be- 
hind.” 

As fractious leaders of Thailand’s rul- 
ing six-party coalition met in Bangkok 
mi Thursday amid mounting concern in 
battered currency and stock markets 
about a deadlock over cabinet changes 
and continuing government paralysis, a 


Will growing political and social in- 
stability in Thailand spread to other parts 
of the region, just as Bangkok’s move to 
let the Thai baht fall on July 2 led to a 
downward spiral in currencies and 
stocks elsewhere? 

“In other countries, political issues 
surrounding imminent elections conld 
result in growing numbers of demon- 
strations, said Robert Bioadfoot, man- 
aging director of Political & Economic 
Risk Consultancy Ltd. in Hong Kong. 
“In still others, more long-standing 
grievances by disaffected groups like 
separatists and religious extremists 
could manifest themselves in more vi- 
olent forms. No country is really risk- 
free.” 

He said that while it would be wrong 
to exaggerate the likelihood of a rise in 
social instability in Southeast Asia, the 
situation in almost all countries of the 
region was more sensitive than it had 
been in a long time. 

Thailand is clearly more vulnerable 
than most because the financial crisis 
there seems likely to be deeper and more 
long-lasting. In the past few days, thou- 
sands of protesters in Bangkok, as well as 
Thai ne w sp a pers and opposition parties, 
have been d emanding the resignation of 
Prime Minister Chaovalit Y ongchaiyut 
for mishandling the economy. 

Mr. Chaovalit is trying to revamp his 
cabinet ahead of general elections 
scheduled for May. Hie Philippines and 
Indonesia face presidential elections in 
1998. 

Independent Strategy, an investment 
research consultancy based in London, 


larger political -question mark loomed v , said in a report to clients that political 
over Southeast Asia. risks were rising in Southeast Asia be- 


cause the “immaturity” of most of the 
region’s political institutions might 
make it impossible for governments to 
persuade the relatively poor segments of 
their populations to accept large cuts in 
living standards to match the currency 
devaluations. 

If they failed, “scapegoats will be 
found and we can expect social and 
political problems,” the consultancy 
said. “The most obvious scapegoats are 
the Japanese in Thailand and the Chinese 
communities in most other countries, 
particularly Malaysia and Indonesia.” 

T hailan d has a large number of Jap- 
anese investors and businessmen, while 
ethnic Chinese minorities in nearly ail 
Southeast Asia nations have been vic- 
timized in previous periods of unrest 
because they are perceived to have a 
disproportionately latge share of eco- 
nomic influence and wealth. 

Juwono Sudarsono, an Indonesian 
political scientist, said that any harsh 
austerity measures, including a possible 
rise in the prices of fuel and other oil 
products, would probably only be en- 
forced in Indonesia after the presidential 
elections in March, in which President 
Suharto is likely to run fra a seventh 
successive five-year term. 

Mr. Juwono said that so far, die In- 
donesian currency crisis had mainly af- 
fected “people who are well off, so to 
that extent it’s immediacy is not really 
felt In rural areas.” 

Mr. Bioadfoot said that Indonesia and 
other Southeast Asian countries had 
faced setbacks in die past and learned 
how to deal with such problems in ways 
that diffused unrest before it escalated to 
nationally disruptive proportions. 


End of Thai Crisis 
May Rest on Vote 

The Associated Press 

BANGKOK — A senior leader 
of Thailand’s government sugges- 
ted Thursday that elections may be 
the only way to break the political 
deadlock provoked by the economic 
collapse of financial markets. 

Resorting to elections indicated 
that Prime Minister Chaovalit 
Yongchaiyut’s government had run 
out of options after confidence in 
the economy has plunged during 
five days of failed attempts to re- 
shuffle the cabinet. 

Interior Minister Snoh Thi- 
en thong, who controls a crucial fac- 
tion of Mr. Chaovalit 's New As- 
piration Parly, said after a meeting of 
party leaders that heeding calls by 
supporters of Mr. Chaovalit to resign 
would “damage the country.” 

1 ’The most important thing is that 
we have to find a way to return 
power to the people, to have them 
find new people to run the coun- 
try,” Mr. Snoh said. 

Mr. Chaovalit is obliged to hold 
elections by next May under a new 
constitution aimed at stamping out 
corruption. Parliament still must ap- 
prove the laws to hold elections 
under the new charter. 

The independent television net- 
work ITV cited party leaders as 
saying that the laws could be sub- 
mitted during a special parliamen- 
tary session by Nov. 4 and the 
House of Representatives dissolved 
three days later. Elections would be 
held within 60 days. 


Trial Put on Hold FRANCE: Papon Trial Is Broadening Into Politics and Myth Grass Calls His Critics 


: 


- As Papon Is Sent 


For Hospital Tests 


Continued from Page 1 

idem, acknowledged fra the first time the political effectiveness of unpunc- 
France’s responsibility for the crimes of tnred myth — rather than pragmatism 

iL. TfZalk.a — — ' ij luiA M m* CikAlMVt AAiMf P MkHoAtr 




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Reuters 

' BORDEAUX, France — The trial of 
d Maurice Papon for crimes against hu- 
r inanity in Nazi-occupied France was 
i *■ suspended until Monday after be was 
jr : taken to a hospital with bronchitis, die 
l judge said Thursday, 
b*- Judge Jean-Louis Castagnede said doc- 
* — tors told him that the 87-year-old framer 
cabinet minister, who had triple heart 
- bypass surgery last year, was undergoing 
<-■ ~ t^sts in the intensive care unit and that bis 
mnrljtinn would not allow him to be in 
j - court “either today or tomorrow.” 

• ‘ j * ■ A defense lawyer, Francois Vuffl^ 

: t said of Mr. Papon: “He felt very weak 
} ~ when he got up tins rooming. He could 

not talk and was bent over. It was as if he 

_rj/-hadaged 20 years during the night.” 
*“M Mr. Papon is accused of ordering the 
' arrests of 1 ,560 Jews from the Bordeaux 
-f“ region during the German occupation of 

: - France in World Warn, when he was a 

. . y ■ senior civil servant in the pro-Nazi 

■ ; — Vichy regime. He denies the charges. 

The trial was suspended fra nearly an 
-- hour Wednesday when Mr. Papon sard 
he felt ill, but it resumed after he was 

- examined by doctors. He had been m a 

Vw- hospital overnight after a first bout of 
. ^ illness shortly after the trial began on 

i. . g 

j - j: Jean-Mare Varaut, another of his law- 
!*f yens, said that emergency medical sea> 
'*£ vices gave Mr. Papon respiratory help 
Wednesday night and sought to have him 
; taken to the hospital, but utai he refused. 
Before the rad, Mr. Papon’s lawyers 
hfld questioned whether he was strong 
enough to survive the proceedings, JJJf 

-’^rdativraoftlrosedqjoitedtoNaadeafe 

. camps during the war have accused him 
of pretending to be ill to win public 

tnal is expected to last until late 


the Vichy regime. Batthe Papon trial has 
taken matters much further. 

Last week, a framer Ganllist minister, 
Olivier Gmchard, testified, “We have 
lived under two myths inspired by de 
Gaulle: that tire Vichy regime never ex- 
isted and that the French won the war of 
1939-1945.” 

Even in a country in confessional 
mode, those few words, from amaD long 
close to the general, amounted to a thun- 
derbolt 

In place of the courageous defender of 
an eternal France, the savior of the re- 
public's honor after the defeat by the 
Germans in 1940 and die architect of 
France’s revival, Mr. Guichard posed a 
new idea: de Gaulle as mythmaker. 

His aim was apparently to fllustrate 
the realism of the general’s striving to 



Greek Ship Rammed Vessel^ Turkey Says 


Agence France-Presse 

■ ANKARA —Turkey’s top military 
commander said Thursday that a 
Greek warship tried to ram a Turkish 
submarine Wednesday night but in- 
stead hit another Turkish boat in the 
Aegean Sea, and he accused Greece of 
“committing a serious aggression.” 

Greece denied the accusation, ac- 
cusing a Turkish patrol boat of hitting 
a Greek minesweeper. 

“It’s the first time that such an 
aggression took place,” General Is- 
mail Hakki Karadayi, chief of the 
Turkish General Staff, said in Ank- 
ara. . . 

“A Greek patrol boat tried to ram 
our submarine while the submarine 
was ascending to the surface during 

our planned exercises in the Aegean,” 

he said. 

“One of our -patrol boats came m 
between the two and the Greek ves- 


unify and revive France, ‘but Gaullism Mr. Papon, making decisions under die Tfl Bonn ‘Vftry Stupid 
has always been about grandeur — and pressure of German occupation. J . 

Mr. Seguin, in a television interview Cfyftr irfii maTI RflfflSfn 
Sunday, insisted, “The republic never 
ceased to exist artel France has nodting to 
be ashamed of during the period from 
1940 to 1945.” His statement was a 
direct contradiction of Mr. Diirac, who 
said on July 16, 1995, that “France 
committed the irreparable” by rounding 
up Jews fra deportation in 1942. 

It seems clear that Mr. Seguin, whose 
father was killed in 1944 during the Al- 
lied push to the Rhine, 1ms not forgiven 
Mr. Chiracfraplacmg the blame squarely 
on France, fra if Vichy was all of France, 
what (fid his father die fra and who were 
the people fighting with de Gaulle? 

Others, including the interior minister, 

Jean-Paul Chevenement, a Socialist, 
have also criticized theprondentrecenlly 
fra his statement — a distinct shift that 
appears to indicate the way the Papon 
bom afterthewar could judge the acts of tnal is putting political nerves on edge. 

‘ The president of the republic can be 
wrong,” Mr. Chevenement said Sunday. 

“One cannot accept the idea that Vichy 
was France.” 

Apart from differences over history, 

Mr. Seguin 's outburst also shows that 
the trial Has compounded the problems 
of the Ganllist movement, the center- 
right political force that has tong held a 
central place in postwar politics. 

Ganlfism was already in trouble be- 
fore the trial began. Its patriotic thunder 


Mr. Seguin’s anger clearly reflected 
such a rewriting of deGaalle’s role. “De 
Gaulle is being accused of not having 
dismissed en masse all the high offi c ia ls 
of Vichy,” he wrote Tuesday. “De 
Gaulle therefore is being recast as an 
accomplice of Vichy.” 

He went on to attack the cootem- 
_ searchfor' ‘truth” and argue that 
Gaulle placed Ranee in the camp of 
the victors, saved the country’s honor, 
avoided an American occupation and 
gained a scat on the UN Security Conn- 
ell. “AH this,” Mr. Seguin said vehe- 
mently, “is a historical merit.” 

S imilar arguments over contemporary 
judgments of the past surfaced in court; 
where the question arose repeatedly 


sel hit it, causing minor damage.” 
. Turkish militaiy sources said the 
incident took place in international 
waters off Turkey's Izmir Bay and 
between the Greek islands of Lesbos 
and Chios. 

General Karadayi said Turkey had 
informed all parties concerned that it 
would hold the submarine training ex- 
ercises in the area. 

“We are trying to avoid confron- 
tations in the Aegean Sea,” he said. 
“But sometimes there is some har- 
assment” 

The private television station NTV 
said a senior Greek diplomat in Ank- 
ara was summoned to the Foreign 
Ministry and handed a strong protest 
note regarding the incident 

NTVsaid Turkey would file a com- 
plaint to its North Atlantic Treaty Or- 
ganization allies over what Ankara 
sees as Greek aggression. 


t Products Liability Project at the North- 


par- 
liamentary elections in June led to a 
surprise Socialist victory. 

But the trial has deepened these dif- 
ficulties. The National Front, which took 
15 percent ctf the vote in June, almost the 
same as the G anllists . has appealed to a 
conservative France by roundly criti- 
cizing the belated trial of Mr. Papon. 

On Sunday, Jean-Marie Le Pen, the 
leader of the National Front, poured scorn 
equally on the trial — describing it as 
“judicial coerti on to impose a new his- 
torical truth” — and on a Ganllist party 
that he sees as destined fra extinction. 
The National’s Front’s political 
become the leading 
on the dis- 

crochro in the device was equipped with The device was designed to eliminate array of a'Gaiillist movement whose 
the eauivalent of the television V-chip the between-puffs burning of cigarettes founder is now being questioned, whose 

. ... I Rif fumHIft 1 


Reuters 

BONN — Guenther Grass, die nov- 
elist, hit back Thursday at government 
critics who have denounced him for call- 
ing Germans closet racists. 

“One would prefer to have more 
worthy opponents,” Mr. Grass said of 
senior officials in Chancellor Helmut 
Kohl’s Christian Democratic Union. 
“They sound smart but they are being 
very stupid-” 

Mr. Grass was criticized fra a speech 
at the Frankfurt Book Fair on Sunday in 
which he assailed Germany for keeping 
4,000 refugees from Turkey, Algeria 
and Nigeria in deportation camps in or- 
der to satisfy what he termed Germans’ 
“closet racism.” 

The party secretary-general, Peter 
Hintze, accused the author of “The Tm 
Drum” of insulting the nation. He said 
die 70-year-old novelist had “plumbed 
an all-time intellectual trough.” 

Mr. Grass said he had wanted to alert 
Germans to the plight of asylum- 
seekers. He told the Luebecker Na- 
chrichten newspaper that he hoped the 

tSe^deplorable *and inhumane way” 
that foreigners are departed. . 


reserves had been spent to defend the 
dollar, but he would not say how much. 

Sky-high interest rates are “clearly 
not sustainable in the longer term,” Mr. 
Ma said. But the Hong Kong govern- 
ment faces a stark choice: Allow stock 
prices to fall while defending the cur- 
rency. as it did Thursday, or let the Hong 
Kong dollar fall in value and risk even 
worse stock market falls in the future. 
This happened after devaluations this 
year in Thailand. Malaysia. Indonesia 
and the Philippines. 

Another analyst with a Japanese 
brokerage agreed tire government would 
not soon give in on the currency peg. and 
ruled out a new peg at a lower exchange 
rate. “If they attempt to meddle with the 
peg, there won’t be any confidence in the 
new level.” be said. “Either you have it 
or you Ira the currency float.” 

The biggest factor that has distin- 
guished Hong Kong from other Asian 
markets with fixed currencies has been 
the willingness of local residents to keep 
their bank deposits in local currency. 
According to the Hong Kong Monetary 
Authority, more than 57.8 percent of 
total bank deposits in August were de- 
nominated in Hong Kong dollars. 

There were no reports of retail switch- 
ing into foreign currencies Thursday, but 
depositors may be unnerved Friday after 
Hongkong Bank halted the customary 
practice of releasing time deposits be- 
fore maturity. 

Hong Kong’s chief executive. Tung 
Chee-hwa, has vowed repeatedly to de- 
fend the currency peg at its current level 
of 7.8 to the U.S. dollar. 

He has also sought to play down the 
competitive effect on Hong Kong of 
falling currencies across Asia, citing the 
fact that far from being a manufacturing 
hub, Hong Kong now derives 83 percent 
of its gross domestic product from ser- 
vices. 

Still, a slump in those services is hit- 
ting the territory in the wallet. The Hong 
Kong Tourist Association reported that 
tourist arrivals in August feu 24.4 per- 
cent compared with August 1996. The 
association blamed the weaker yen and 
other fallen Southeast Asian currencies 
fra the decline. 

What is more, Hong Kong is about to 
make its important shipping business 
more expensive, with or without a rel- 
atively strong currency: TheJerritory is. 
set to raise landing fees when it opens its 
new airport in the middle of 1998. 

“Hong Kong is in danger of pricing 
itself out of the market,” said one ex- 
ecutive with a cargo company. With sea 
and airport capacity expanding in south- 
ern China, the gradual decline of Hong 
Kong as China’s trade gateway could 
accelerate. The cun-ency crisis “makes 
Hong Kong look like a bastion of high 
cost,” the executive said. 

According to Geoffrey Barker, head 
of Asian research at Schroder Securities, 
Hong Kong's main regional competitor 
as a headquarters for businesses and 
financial services, Singapore, can be ex- 
pected to devalue its currency in the face 
of sharply tower stock prices there. 

Regarding Hong Kong stocks, Mr. 
Barker said, “Our advice to Joe the 
Investor is to condone to sell and to 
remain very much on die sidelines, to 
underweight Hong Kong.” 

All classes of stock were hit Thurs- 
day, including the previously hij 
ing red chips, or shares of China-1 
companies incorporated in Hong Kong. 
Among the hardest hit was China Tele- 
com, which fell almost 10 percent in its 
first day of trading. Red chips have 
traded at lofty price-to-eaxnings ratios, 
based on the expectation that they will be 
able to buy assets at discounts from their 
mainland Chinese parent firms. 

Now, investors appear to be discount- 
ing a lot of those promises, and red chips 
could easily fall further. The Hang Seng 
red chip index is still trading at a hefty 
29.8 times earnings, and China has cut 
mainland interest rates this week to re- 
vive its slowing economy. 


had been stolen by the rightist National \W7 A T T C r T _ rr jj T? u . a a oi j j ■ 

Front and its authority undermined by vT J\ B i 1J tlOlttS FlTTTl /alter 

the errors of a Ganllist president, Mr. ° ° 


SMOKE: Battery-Powered Electronic Holder Lights Up for a Puff “ 

r“ v til* Hevine was ramtDDed with The device was designed to eliminate array of a GauIIist movem 

Continued from Page 1 


Continued from Page 1 

consortium building a cellular telecom- 
munications system in China. 

He said dial the recent plunge in Hong 
Koag stock prices reflected the fact that 
investors from other Southeast Asian 
countries were cashing out their invest- 
ments to cover their domestic debts. This 
on the Hong Kong dollar, 
an increase in interest rates, 
which persuaded local traders to sell 
some of their stocks. 

With China committed to maintaining 
the peg of the Hong Kong dollar to its 
U.S. counterpart and having the cur- 
rency reserves to do it, Mr. McNamar 
said he did not think there was the threat 
of a systemic market failure. 


America’s, he said, with growing pro- 
ductivity making for a healthy invest- 
ment climate. 

A sign that the panicky reactions to 
the Hong Kong problems were overdone 
came from Thomas Herzfeld, the closed- 
end mutual fund specialist in Miami 

While European stock markets were 
lulling about 4 percent and Asian ex- 
changes other than Hong Kong record- 
ing 6 percent drops during the trading 
day, Mr. Herzfeld said closed-end coun- 
try funds had dropped by 10 to 12 per- 
cent in such diverse markets as C hina , 
Germany, Vietnam, Russia and India. 

With such large discrepancies in the 
prices of the funds and the markets they 
minor, it is relatively simple to make 
money by selling short the stock indexes 


that accounts fra 90 percent of second- 
hand smoke. 

But smokers stiD would inhale at least 
the same 3 milligrams of tar and 0.2 


a locking device fra use by parents.) 

But the new product, tentatively 
called the Accord, could find a big mar- 

uw-y * j «iu in ket among the “many smokers who vol- — — -- -~ 

5 extern University School lot un ^ Y Strict dieir smoking at homeor milligram of nicotine Aalismcon- 
vBjRton, dismissed it as ‘clearly another * oTbecause their spouse doesn’t ventional so-called ultralight cigarettes, 

-.nicotine-delivery device. like it,” said John R. Nelson, senior vice i«— 

He added: “Who would use ** JSSideait of business development for 




Overthenext month, the Accord will 
be made available to smokers in con- 
trolled tests in the United Slates and 
Jaoan It will not be commercially avail- 
ablein test markets fra at least a year. 


Users also still would exhale smoke. 
Philip Morris, the world's No. 1 cig- 
arette maker, said die product was not 
meant to evade smoking laws- 
Accord cigarettes are 62_ millimeters 
long, compared with 85 mfllimeters fora 
conventional cigarette, and are expected 
to cost die same as premium cigarettes 
— $250 to $275 a pack in the United 
Stales. 


political message is unclear and whose 
defeat has still not been entirely ab- 
sorbed. 

Officials said that relations between 
the GauIIist movement and the president 
remain extremely tense because of the 
embarrassment of the June defeat, a hu- 
miliation widely ascribed to die political 
ineptitude of Mr. Chirac. Thus Mr. 
Seguin’s thinly veiled criticisms of the 
president form part of a pattern of dis- 
cord. 

These internal divisions have only 
made the Gaul lists more vulnerable, par- 
ticularly to the National Front, as the 
Papon trial unfolds. 


Rudy Schlais, president of General and buying the much less expensive 
Motors Corp.’s China unit, said the huge closed-end hinds. 


Chinese economy was impervious to the 
market npsets elsewhere in Asia. “In 
contrast to the other parts of Asia, China 
is really kind of -the bright spot right 
now,” he said during a visit to New 
York. 

“They have really, since the end of 
1993, done a diligent effort in con- 
trolling inflation,” he continued. With 
its economy nonetheless expanding at 
about 9 percent a year and a stable, 
though not freely traded, yuan, the coun- 
try has encouraged investment Al- 
though it uses vastly different methods, 
China’s economy is similar to that of 


One positive development for finan- 
cial markets around the world was the 
receding likelihood that the Federal Re- 
serve Board will push interest rates high- 


er. 


The central bank has given conflicrino 
signals on ns U.S. inflation outlook, but 
with markets all over the world under 
prresure an interest-rate rise would be 
destabilizing. w 

1 1 V* . fUSh . mt ° Treasuf > reduced 

U.S interest rates across the board, with 

the -^ y e^reasury y idd faSngto ^3 
P«cem ftom 6.43 percentTw^ 


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PAGES 


FRIDAY, OCTOBER 24, 1997 

EDITORIALS /OPINION 


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INTERNATIONAL 



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PUBLISHED WITH TUB DEW YOKE TTMlCS A NO TUB WAStUNCTON POST 


Keep Kosovo Peaceful 


Events in Kosovo are proving the 
adage that those who make peaceful 
revolutions impossible make violent 
ones inevitable. 

Kosovo is a region of Serbia where 
a tiny Serbian minority has governed 
the Alb anian majority in brutal 
apartheid style since Slobodan Milo- 
sevic revoked the region's autonomy 
in 1989. Recently some Albanians, 
frustrated that politics is getting them 
nowhere, have tamed to attacks on 
police stations and other symbols of 
Serbian power. 

Serbian authorities respond with in- 
discriminate repression. To keep the 
peace in Kosovo, the United Stases and 
its European allies must do more to 
help restore the rights of the Albanians 
there. A peaceful Kosovo is crucial 
because violence could spread to 
neighboring areas. 

Belgrade politics is one reason for 
the new violence. The extremist Vojis- 
lav Seselj, a Milosevic creation who 
would now be president of Serbia if 
low turnout had not annulled recent 
elections, said that a few divisions of 
Serbian fighters would take care of 
Kosovo, which Serbs hold as the cradle 
of their history. His nationalism has * 
pushed even moderate Serbian politi- 
cians into inflammatory statements. 

The leader of Kosovo's Albanians, 


Ibrahim Rugova, has called for Ko- 
sovo’s independence but has been a 
tame, ineffective opponent of Mr. Mi- 
losevic. Mr. Rugova’s moderation 
pleases Washington, which favors 
only restoration of Kosovo’s auto- 
nomy inside what is Left of Yugoslavia. 
But his inability to improve life in 
Kosovo has inadvertently encouraged 
Albanians to try violence. 

Washington, which has promised to 
keen economic sanctions on Serbia un- 
til Kosovo's rights are restored, has 
done the most to help, but it is no 
longer enough. A year ago Mr. Mi- 
losevic agreed to education reforms 
that would allow tMehmg Albanian. 

*WMiingm^m^r^crease its pres- 
sure on Belgrade to cany out this and 
other reforms, especially ending ar- 
bitrary jailing? ana beatings. There is 
virtually no foreign presence in Ko- 
sovo. Monitors axe needed, and an 
American special envoy to Kosovo. 

There is some hope. In a rare in- 
stance of dialogue, Kosovo and Bel- 
grade students met for the first time last 
week. Politicians have also held talks, 
but Mr. Milosevic's party boycotted 
them. Kosovo’s misery will end only 
when real democracy, free of Mr. Mi- 
losevic's control, comes to Serbia. 

— THE NEW YORK TIMES. 


A Rotten Scene 


■ The giving of campaign contribu- 
tions in return for government favors 
used to be a fairly simple, not to say 
straightforward, business in America. 
The investor and the candidate in 
whose possible victory the investment 
was being made generally could 
handle the transaction on their own. 
‘ But this is increasingly a service eco- 
nomy in which people pay others to do 
for them, or to help them do, what they 
used to do for themselves. 

In that connection, meet Peter 
Knight, longtime associate of and 
prodigious fund-raiser for Vice Pres- 
ident A1 Gore. 

Mr. Knight raises campaign funds, 
most recently for the Ctinton-Gore 
ticket in 1992 and again last year, 
thereby ingratiating hmnsftlf and in- 
creasing his already considerable in- 
fluence with people about to be in 
power. He then hires hims elf out to 
those whom he has just dunned. Who 
better than he, -who sought, received 
and delivered their contribution, to 
help them tty to cash in on if? In the 
interim, he has used his influence to 
help place in lesser positions within 
the adminis tration persons to whom, 
he also can turn. 

Mr. Gore has received his campaign 
money. The donor, if all goes well, 
receives a government contract Mr. 
Knight receives a handsome fee. It's a 
three-fer, everyone a winner. Who 
could possibly be unhappy with that? 

A recent story in The Washington 
Post recounted an example, involving 
Molten Metal Technology Inc., a Mas- 
sachusetts firm that disposes of haz-, 
ardous waste. It contributed early and 
more than once to the Clinton-Gore re- 
election effort “Your participation in 
this program will give you a special 
place of significance with the vice 
president and put you first in tine," 
Mr. Knight wrote its executives in re- 
sponse to an early pledge on their part 
to raise $50,000. Mr. Knight, who 


would later become the manager of the 
Clinton-Gore campaign, was then on 
retainer to the company for $7,000 a 
month plus a stock option. 

A company executive has since ac- 
knowledged to Senate investigators that 
‘'one of the things'’ Mr. Knight was 
hired for was “influencing government 
decisions.’' “The simple answer to that 
is 'yes,' ” the executive said. 

Mr. Gore paid a well-publicized vis- 
it to the company’s headquarters in 
1995. A research, contract that the com- 
pany had with the Energy Department 
was meanwhile being increased stead- 
ily, from $1.2 million in 1994 to $33 
million by 1996, more than half the 
money given out in that particular re- 
search program. The increase was 
shepherded in part by an assistant en- 
ergy secretary, Thomas Grumbly, who 
had been a Gore aide when the vice 
sident was in Congress and whom 
r. Knight, as a member of the Ctin- 
ton-Gore transition tagm in 1992-93, 
had helped to get his job. 

Mr. Crumbly stud he had just been 
doing his job and bad had no know- 
ledge of the Molten Metal 


contributions. Mr. Knight said 
could not remember having raised 
some of tiie Molten Metal money that 
records indicate he did raise, but was 
proud of his fund-raising efforts gen- 
erally. “Any suggestion 7 ’ that be had 
“helped arrange a government con- 
tract or grant in exchange far any type 
of contribution is patently false,” he 
added through his lawyer. 

So tt wasn’t an “exchange.” It was 
just a sequence of events in which the 
players, all of them, happened to end 
up with what they wanted. Fancy that. 
What good fortune. Whai a coincid- 
ence] the current method of campaign 
finance is rotten, not so much because 
the structure allows such rottenness — 
which it does — as because so many 
take unashamed advantage of it 

— THE WASHINGTON POST. 


Even in Arcadia 


Perhaps the subtlest art exhibition in 
New York City at the moment is the 
single painting by Nicholas Poussin 
banging, on loan from the Louvre, in 
the Frick Collection. 

The painting, completed around 
1638, is called “The Arcadian Shep- 
herds.” It depicts three shepherds and 
a shepherdess contemplating a tomb 
built of stone blocks and bearing the 
Latin phrase “Et in Arcadia ego. The 
words translate to “Even in Arcadia 
am I,” and they are the words of death 
himself, present even in that mythic, 
pastoral golden age when the most 
pressing concern of men and women 
was the welfare of their sheep. 

“The Arcadian Shepherds” is a 

Fric k ' S^^Joug-fam i l s ur works without 
attracting notice to itself. 

A painting by Turner — “Cologne: 
Hie Arrival of a Packet-Boat: Even- 
ing” — hangs next to it, which means 
that Poussin’s shepherds are upstaged 
by Turner’s incandescence. 


A shepherd kneels beside the tomb, 
and it has always seemed as though he 
must be tracing the Latin inscription 
with his outstretched finger. 

Perhaps it is also die masonry that 
puzzles the shepherd, the presence of 
this carefully crafted edifice in the 
midst of an uncultivated landscape. 

The Frick is a quia retreat, and 
nearly everyone who stops at Poussin’s 
painting is enveloped by its stillness — 
the stillness of the stone announcing 
death's presence. 

The sounds of Manhattan are barely 
audible, only a memory of the din that 
echoes through this island. 

It was always the city thru gave 
meaning to the myth of Arcadia (a 
fantasy of simple pleasure and quia) 
even when the city was ancient Rome. 
But there are days, too, when it takes 
Arcadia — a place without the rumble 
of traffic, without bride or steel, even if 
it exists only in a painting — to put the 
city back in its place. 

— THE NEW YORK TIMES 


ICcral baiB^ eribttitg 


ESTABLISHED 1887 

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Co-Chairmen 

KATHARINE P. D ARROW. VS«- Chanm 

RICHARD McCLEAN. PiiWuftpr A Chief Executive 
MICHAEL GETLER, Executive Editor 

• WALTER WELLS, Managing Editor • PAUL H0RVT1Z, Deputy Managing. Editor 
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Investment Can Be Too Much of a 



W ashington — u^. and Euro- 
pean financial markets are strug- 
gling to form a picture of how and when 
the very favorable economic conditions 
in America might end. The end might 
come not from the tanergence of in- 
flation, and the Fed's reaction to that, but 
from growth of investment faster than 
demand can increase. 

Southeast Asia and probably China 
are demonstrating that it is possible to 
save too much and invest too much. 

In America in the 1990s, a dereg- 
ulated and vibrant economy has gen- 
erated more investment opportunities 
than American savers choose to fi- 
nance. The resulting capital inflow has 
contributed to an investment-led recov- 
ery that so far has produced remarkably 
hi gh growth cates without inflation. 

In this sense, America in the 1990s is 
behaving like a developing country 
with a surfeit of investment oppor- 
tunities that results in a capital inflow 
mirrored by a current account deficit 
Large parts of the industrial and de- 
veloping world are, lane in the 1990s. 
encountering something that markets 
and policymakers had not seen for more 
th an 60 years: the paradox of thrift. 

If some savers seek a high return by 
forgoing current consumption and se- 
lecting good investment projects, they 
are duly rewarded. If, however, every- 
one tries to increase savings at once, 
gradually over timethequality of avail- 


Bv John H. Matin 


able investment oppanurutes begins to 
fall After an exhifirating investment- 
led recovery, overinvestment results. 

Overinvestment appears when pro- 
jects are undertaken that generate re- 
turns insufficient to compensate savers 
for forgoing current consumption. 

When investment projects begin to 
disappoint, it Is too late to remedy the 
paradox of thrift, because the capital 
stock purchased by those investment 
projects is already in place. The pro- 
jects must be either shut down or used 
to produce goods in hopes they may be 
sold for some positive price. 

If too many disappointed investors 
try to sell goods at any price, deflation 
ultimately results, and unemployment 
rises as companies that have redundant 
capital seek to minimize costs. 

The paradox of thrift and the re- 
sulting symptoms of overinvestment 
are becomingmore and more evident in 
Southeast Asia and are re-emerging in 
Japan and China as welL 

The century’s two investment-led 
recoveries, in the .United States in the 
late 1920s and in Japan in the late 
1980s, ended with equity market col- 
lapses. The collapses resulted from 
overinvestment resulting from the 
paradox of thrift described above. 

Rapidly increasing excess capacity 


in Asia, by channeling more invest- 
ment funds to the United States while 


demand rowan* Europe's expensive 
‘ > and Asia's excess- 


productive capacity . r; -— 

.c-Sf—JEs.** 


vinuvi WAOVWVtuv m 

tendency in the U.S. economy and in 
turn lead to more exuberance in fi- 
nancial markets. That exuberance 
would ultimately be unjustified. 

The underlying deflationary tend- 
ency in Asia, with its already -extant 
stock of excess capital, increases the 

risk that we may be approaching a time 

when UiS. excess capacity results m 
'ointments that cause a 
stock market 
data so far do not help 
support Alan Greenspan's stated fears 
about a traditional reflationary end to a 
demand-kid recovery. That is probably 
because this is a supply-led recovery 
underscored by strong investment be- 
havior, with price pressures tempered by 
deflationary impulses in Asia and tight- 
ening mooetaiy policies in Europe. 

With too much capital alnauiy m 
place in Asia, and Europe relying on a 
tepid export-led recovery to sustain it- 
self on an essentially deflationary pain 
toward monetary union, the danger i s 
that the rapid capital formation still 
tmiter way in the United States will 
become unsustainable. 

In an environment where the U.S. 
recovery does not generate inflationary 
pressure, the market mechanism that 
will adjust to shift weakening global 


WU W uiv-viw* 

4 « another way of saying that the 
deflationary pressure in Asia and the 
disinflationary pressure in Europe will 
be exported to the United Stale* in the 
fonn of a stronger U.S. currency. 

Mr. Greenspan and Treasury Sec- 
retary Robot Rubio should have a se- 
rious discussion about the policy im- 
plications of Amcrica’siflvestmeni-led 
recovery in a world of global excess 
capacity. Surely it is time for wear 
dollar appreciation to relieve some of 
the excess capacity and to slow some of 
the investment growth that eveuwaHy 
will become excessive in America. 

If a stronger dollar causes US. bonds 
to outperform U.5 equities for a rime, 
surely that is what Chainnan Greenspan 
would like to see. Far better to have 
U.S. bonds outperforai U.S. equities 
due to a rise in bond prices and stable 
equity prices, instead of a collapse in 
equity prices that will eventually occur 
if tbe U.S. investment juggernaut 
causes the United States to join the 
world’s growing excess capacity club. 

The writer is a fellow at the Amer- 
ican Enterprise Institute. This com- 
ment has been adapted by the Inter- 
national Herald Tribune from a huger, 
paper to be published by the institute. 


Strong Oil Pressures Are Building Against Sanctions on Iran 


K UWAIT — Just north of 
here, Iraqi refineries near 
Basra are producing tons of gas 
oil used to fire power plants. 
Almost every day, small pirate 
vessels hugging the Iranian 
coast shoot up into the Sbatt-al- 
Arab waterway near Basra and 
load up on tms Iraqi gas oil, 
which die Iraqis sell the pirates 
at bargain prices. 

These small vessels — always 
staying just inside the shallow 
Iraqi or Iranian waters, where 
U.S. Navy ships maintaining the 
United Nationsrblockade on Iraq 
can't get at them — then sail 
back down the Gulf. 

tains,°rarrying ^wadi^of casfu 
pay off various Iranian admirals 
and Revolutionary Guard naval 
units to gain free passage 
through Iranian coastal waters. 

When the pirate boats reach 
the southern end of the Gulf, 
they wait for when the U.S. 
Navy isn’t around and then 
shoot across from Iranian wa- 
ters into the United Arab Emir- 
ates- or out into the Indian 
Ocean. In either place, they load 
their gas oil onto tankers that 
take it to market. Iraq makes 
money, Iran makes money, the 
pirates make money. 

Ain’t capitalism wonderful? 
This pirate trade is only one 
small way in which the geo-eco- 
nomics of oil is woridng against 
the UJS; sanctions on Iran and the 
UN blockade on Iraq. 

There are today five great 
lakes of oil in this part of the 
world — Saudi Arabia, Kuwait, 
Iraq, Iran and the Caspian Sea in 
Central Asia. The way inter- 
national oil companies make 
their big money is by entering 
into production-sharing agree- 
ments with oil states. 

That is, the oil company as- 
sumes the risk of exploring and 


By Thomas L. Friedman 


developing a country's oil 
fields, and then shares in its 
luction until the field is dry. 
tis way the oil company has a 
steady flow of crude for years to 
pump, refine, ship and market, 
profiting at each stage. 

But such deals are rare these 
days. Kuwait and Saudi Arabia 
booted the companies out in the 
1970s in order to develop their 
own oiL They use foreign oil. 
companies purely as technical 
advisers. Russia, Azerbaijan 
and Turkmenistan, along the 
Caspian Sea, have beenready to 
sign production-sharing agree- 
ments to get that oil out but 
because they are fighting over 
who will get what share and 
where the pipelines will run, the 


Caspian 

That 


iian remains locked shut, 
leaves Iran and 
Both these countries < 
what the oil companies want, 
and they are ready to give it to 
them. The deal jnst signed be- 
tween Iran and the French, Rus- 
sian and Malaysian oil compa- 
nies is a production-sharing 
agreement fra; them to search 
for gas in Iran’s huge South Para 
offshore gas field. 

You can see the allure. The 
oil companies get the kind of 
deal drey have not seen in the 
Middle East since the 1970s. 
Iran, whose oil fields are run- 
down, gets technical help from 
the oil companies and a thumb 
in fee eye to U.S. sanctions. 

For now,- Iran Is limiting 


these production-sharing deals 
to offshore fields. But if it were 
to offer onshore deals, and 'it is 
only a matter of time, every 
oil company in tbe world would 
be salivating. 

Not to be outdone, Saddam 
Hussein has signed productionr 
sharing agreements with 
French, Russian and Italian oil 
companies that give them the 
right to develop certain Iraqi 
fields the minute UN sanctions 
on Iraq are lifted— thus turning 
the oil companies into an in- 
ternational lobby on his behalf. 

“The Iraqis are offering os 
incredible splits — 60, 70 per- 
cent for the oil companies," one 
executive told me. That explains 
why France and Russia are re- 
sisting U.S. efforts to tighten 
UN sanctions on Saddam. 


You need to spend only a few • 
days in Kuwait — hearing from . 
some of the 600 Kuwaiti fam- 
ilies who had loved ones ab- 
ducted by Iraq during the in- 
vasion and never accounted for 
by Baghdad, or visiting the 
newly rebuilt Kuwaiti oil fields 
that Iraq gratuitously set ablaze, . 
creating a mammoth ecological 
disaster — to be reminded why 
Saddam is such a menace ana . 
why the sanctions on Iraq need 
to be maintained. 

Unfortunately, the geo-eco-- 
nomics is pulling the other way. 

Powerful, oil-driven forces 
are building against the U.S. 
sanctions on Iran. And Saddam 
is clearly hoping that if and when 
the Iran sanctions collapse, those 
on Iraq will fell next 

The Noe York Times. 


How Europe Could Help Out in the Near East 


T HE HAGUE — Many of os 
in Europe have good reason 
these days to ask ourselves what 
it is we are really trying re do in 
the Near East 

Is Europe to be just “the 
Wailing Wall of the Arabs,” in 
the words of a senior official of 
Israel’s Foreign Mfiiistty 
.speaking last month to a Tn : 
lateral Commission fact-find- 
ing mission in the region ? (That 
same official didn’t mind jok- 
ing that hostility toward toael 
was fee “only theme to have 
succeeded in uniting the Euro- 
pean countries.” ) 

Or should we simply be con- 
tent “to be invited for a sweet 
dessert and pay a steep bill,” as 
the European Union’s special 
envoy to the Middle East peace 
process, Miguel Angel Morati- 
nos, put it recently to the Euro- 


By Otto von Lambsdorff 


peari Parliament’s Foreign Af- 
fairs Committee? 

Our contribution to fee 
“bill” of a peace table from 
which we often fed excluded 
has been more than a billion 
Ecus ($ 1.1 billion), or no less 
than 53 percent erf international 
aid to the West Bank and Gaza 
from 1994 to 1996 — as 
against, say, 9 percent in the 
case of the United States. 

Clearly fee principal pay- 
master cannot long remain ab- 
sent from fee negotiating table. 

For its participation to be 
meaningful m this most delicate 
ofan^.Europeinuststandini- 
equiyocally by a couple of basic 
principles. One is security. Se- 
curity can never be a mere co- 
rollary or distant “dividend’ ’ of 


Watch America Shift Leftward 


N EW YORK — It’s not 
more than a stirring at fee 
moment, like a soft breeze that 
heralds a change of seasons, 
but it’s happening. The con- 
servative hold on the Amer- 
ican electorate is loosening. 

The so-called conservative 
revolution has more or less 
exhausted itself. It has left its 
mark, but it has also left a 
majority of Americans to face 
the 21st century with tbe un- 
settling sense that they are cm 
their own when it comes to 
such potentially overwhelm- 
ing matters as earning a living, 
raising a family, sending chil- 
dren through college, caring 
for aging parents, securing ad- 
equate health care and provid- 
ing for their own retirement in 
an increasingly insensitive 
unforgiving global economy. 

Tbe conservative philo- 
sophy tells these working 
people to forget about turning 
to their government fix hehr, 
there is nothing to be done. We 
ate in an era in which giant 
corporations rule the economic 1 
world according to the mer- 


can 


The best the 
do is get out oF fee _ _ 

This cynical, self-serving 
and ultimately inhumane ap- 
proach is increasingly being 
seen as unsatisfactory. 

The conservative revolu- 
tion has not raised fee stan- 
dard of living of most Amer- 
icans, has threatened such 
cherished and hand-won sup- 
ports as Social Security and 
Medicare, and has not come 
op with a game plan for ad- 
dressing the economic and 
cultural challenges ahead. 

Ever so subtly, ever so war- 


By Bob Herbert • 

fly, tbe American gaze is drift- 
ing to the left. Let's not get 
crazy. We are not talking 
about a paradigm shift. And 
God forbid we should use tbe 
term “liberal.” That’s out 
But “progressive” is O.K. 

There was a great deal of 
sympathy for the workers 
striking against United Parcel 
Service, and overwhelming 
public support for an increase 
in fee ntmiirmm wage. Last 
fell we saw Republican con- 
gressional candidates sprint- 
ing away from Newt Gingrich 
and fee harshest elements of 
fee conservative ideology. 

And in the past two pres- 
idential elections we have 
seen the so-called Reagan 
Democrats, as worried as any- 
one about fee economic un- 
certainties, returning to the 
fold to vote for Bill Clinton. . 

A recently published book, 
“The New Majority: Toward 
a Popular Progressive poli- 
tics,” argues feat an oppor- 
tunity exists for fee Demo- 
cratic Party to regain the 
support of a solid majority of 
tbe electorate by re-establish- 
ing its traditional identifica- 
tion wife fee struggles and as- 
pirations of working people — 
the middle class, the woridng 
class and the woridng poor. 

The book was edited by.. 
Stanley B. Greenberg, apoll- 
tfer and former advisa to Pres- 
ided Clinton, aiul Theda Sk^ 
poL a professor of government 
at Harvard. It is a campflatiaa 
of essays by progressive (get 
used to feat word) thinkers, 
including the historian . Alan 


Brinkley, fee president of the 
Economic Pohcy Institute, Jeff 
Faux, and fee sociologist Wil- 
liam Julius Wilson. 

The book points out that 
while we have been in an eco- 
nomic recoyery for several 
years now, the gains are not 
being properly shared. Most 
working Americans, despite a 
booming economy and a re- 
cent modest uptick in wages, 
are either treading water eco- 
nomically or. slowly sinking. 

A recent poll showed 60 
percent of whites, 58 percent 
of blacks and 55 percent of 
Latinos saying thar , compared 
to 10 years ago, they are “now 
farther away from attaining 

fee American dream.” 

Very few of those respond- 
ents see feeir interests being 
well served by fee Republican 
Party, fee conservative ideo- 
logy or fee corporate jugger- 
naut. The question is whether 
fee Democratic Party can get 
its act together and seize fee 
opportunity to fashion thia 
new majority. 

It can do so only by ad- 
dressing in a compelling way 
the real-world concerns of 
working families. 

Right now, both parties are 
stumbling around Washing- 
tou in a dance of incoherence. 
The Republican leadership is 
feuding and the top Demo- 
crats. are. ducking subpoenas 
and hiding from special pros- 
ecutors. If there are any good 
ideas around, they are being 
carefully concealed. 

Which is a shames Because 
there is a new majority feat is 
just waiting for responsible, 
progressive leadership. 

The New York Times. 


current peace efforts. It is 
simply inseparable from peace 
every step of fee way. 

It comes out clearly 
throughout the region feat fee 
peace process is (he only con- 
structive game in town, and as 
such must go on. Security is 
perhaps the only truly convin- 
cing argument of an Israeli ad- 
ministration that has otherwise 
unilaterally endangered the pro- 
cess time and again. 

To ignore or underestimate 
tbe legitimacy of this concern 
for security can only undermine 
Europe’s credibility wife one of 
tbe main parties. Hence the 
need far Europe to impress 
upon Palestinian and other Arab 
authorities tbe importance of a 
stronger, more energetically 
pursued commitment to secu- 
rity, if wc are ever to play our 
role as honest broker. 

It is such a role that Am- 
bassador Moratinos, on behalf 
of the European Union, has pi- 
oneered in recent months, es- 
pecially by his promotion of a 
‘code of conduct” for the re- 
gion, to the almost unanimous 
praise of the parties concerned. 

Apart from providing steady 
assistance to both sides in fee 
conflict, another key premise 
for any valuable European ini- 
tiative is probably to refrain 
from interfering when we have 
neither fee clout nor a common 
position among our countries. 

Acting alone, as my country 
unfortunately did not so long 
ago, almost always ends in a 
failure for Europe and a further 
muddling of the process. 

Now, interestingly, nowhere 


is fee need for a common Euro-* 
pean stance more powerfully 
advocated than in fee Near East’ 
Figures as disparate as former 
Israeli Prime Minister Shimon* 
Peres, Jordan’s Crown Prince' 
Hassan or the Palestinian Na- 
tional Authority minister Feisal • 
Husseini use practically the. 
same words in exhorting the 
nations of fee European Union, 
to act as one in helping to turn a 1 
Palestinian state-in-the-making . 
into the bridge to broader co- 
operation throughout the area. > 
The challenge is to mobilize*. 



large 

tilateral future on which the. 
prosperity and well-being of its! 
peoples depend in the next mil-, 
lennium. Honest broker, expe- 
rienced multilateralist — this is, 
if we put our month where our 
money is, our chance to make a 
difference. , 

The spirit of multilateralism* 
is not in vogue in America 
today. Reaffirming it, if wet 
Europeans know how to, will, 
strengthen our dearly eamedt 
hand, and might help our Amer- 
ican partners in then* fireplace*. 
able rote in achieving peace an 
security in so cardinal a regjoiL;- 

" “ — ■ 4 

The writer, a member of the i 
Bundestag and a former Ger- 
man economics minister, is 
chairman of the European 
branch of the Trilateral Com- 
mission. which this wee/tend in 
Hie Hague holds its annual 
European meeting, with the x ' 
participation of senior officials, 
from the Near East. He con-, 
tnbuted this comment to the In- 
ternational Herald Tribune. , 



1897: Help for Feet 

PARIS — It is no rare occur- 
rence to find persons troubled 
with exaggerated skin secre- 
tions, more particularly local- 
ized m the feet Some success 

has attended trials wife an 
aqueons saturated solution of 
pare acid, but tartaric acid is 
tite remedy, has now been 

^Qd to yield fee best xesnlts. 
day a pmch of this sub- 

sssacassst 

is* , of course, selfnnderstood 
that at least two pairs of boots 

Z aVa “k- this meSSd 

fee sweaty secretion may verv 

soon be done away with. 7 
1922: Women’s Code? 

LONDON — Ambassador Har- 
vey assumed his best light-es- 
sayist vein to-night [Oct 231 
he told fee Author’s Club 


feat the world needs a new ten' 
commandments — for women. 
Speaking on the theme “Have * 
Women Souls?” fee AmbassaSffi 
dor maintained that fee d3b-^ 
logue was “written exclusively 
tor men, women not being 
The tenth co£S 
be declared, forbade 
men to covet their neighbors’: 
wives, but did not forbid women 
£ ? v g neighbors’ hus-i 
hands. He denounced such a the- 
ory as grossly unfair. 


;! M 




fie 


V** 


1947 : Europe’s Plight 

WASHINGTON _ 

l0 t y f0ct - 23J cS 

Congress back into session 
November 17 to considerd!” 

pnoe situation and the 
Eurojxsan economic plight Hd 

SS*"? conference *atiS 
*“«! and fuel w£ch to 

“"Wfairpeopic are^ sur- 
^ Ve fee coming winter ” - ^ 

; 




fn Coo,! 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


PACE 9 


OPINION/LETTERS 


' 2 S *- V ?!- *1 j.-.r-;. 


'Ill,, 

. 0 


: A Swell Dame Doing a Good Job: 
Reno Isn’t Bullied by Either Side 


With Fashion Like This , fTTij Getf Dressed? 


W, A he™n™^ e n S d e By Richard Cohen 




rpoviei. I like it when gang- 
sters are called gun&els. wbeii 
dops arc called dicks or flat- 
roots aod big guys are called 
Thugs. It is in That vein, as I’m 
yire you will understand, that 
Ijoffer Attorney General Janet 
Beno my ultimate accolade: 
She's a swell dame, 
t That she’s a dame is, of 
course, why she has her job in 
the first place. It was the 
policy of the Clinton admin- 
istration to seek divercitv if 


time, she couldn’t take a hint. 
How Ms. Reno got this 
r~ . way is anyone's guess. It 

lms was downright weird be- could be because her mother 
* “tan certified by used to wrestle alligators and 
me wall Street Journal and her father was a journalist — 
other publications as a career both weird in their own ways, 
cnthinal, sex deviant and seri- Or, more likely, it was her 1 5 
ai nosher , but the fact remains years as Dade County pros- 
mat after some other names editor that prepared, hex for 
were floated, the president almost anything. After 
chose Ms. Reno, someone he Miami's vices, Washington 

*j no lT^?? ow (Appar- can seem tame; ' 
ently, Hillary Rodham Clin- Whatever the reason, Ms. 
ton had met her once.) Mr. Reno has refused to be bullied 


Clinton, for some reason, was 
? cabmet acting like an honest man. 

WhCn 11 Can,e Contrast Mr. Clinton’s 
!£llf-»n UShCe De P artolent ' to a choice of an AG with those of 
7 J previous presidents. John F. 

First mentioned was Ap- Kennedy, who Bad some 
peals Court Judge Patricia secrets, chose his brother 
Waltk who reportedly de- Robert, who also had some 
dined. Then came Zoe Baird secrets. Richard Nixon chose 
wha H turned out, had once his pal and law partner John 
hired an illegal alien as a Mitchell, a bond lawyer be- 
naimy. Because this is a very fore Watergate, a jailbird 


can seem tame; ' 

Whatever the reason, Ms. 
Reno has refused to be bullied 
by Republicans (and the 
press) into appointing an in- 
dependent counsel when, as 


choice of an AG with those of almost anyone can tell, none 
previous presidents. John F. is needed. On the other hand, 
Kennedy, who Had SATTW rbA «Ica mAicaH m/1 h«>r 


she has also refused to end her 


■ ir ", e , Bajrd secrets. Richard Nixon chose 
wha it nimed out. had once his pal and law partner John 
hired an illegal alien as a Mitchell, a bond lawyer be- 
nanny. Because this is a very fore Watergate, a jailbird 
senous crime or infraction or after. In feet, presidents usu- 
whatever, she had to withdraw ally choose people they know. 


secrets, chose his brother investigation of what was, in- 
Robert, who also had some dispntably, a s mar my Clinton 


her name from consideration.' 
• Next up was Kimba Wood, 
a New York federal judge. 


since the attorney general, as 
the nation’s top law enforce- 
ment official, is someone you 


She too had children and a want to keep pretty close. 


list Sanction* on ]|j 




career and she too ran afoul of 
the _ various laws regarding 
nannies. Judge Wood remains 
a federal judge, so the infrac- 
tion could not have been all 
thaiserious. 

What is serious is that none 
of us recognized at the time 
thdtthis was the beginning of a 
pattern — a Washington ob- 
session with trivia, arcana and 
infractions so petty that we are 
now down to such matters as 
whether Al Gore should get 
the electric chair for using the 
wning White House phone to 
call 'a fat cat When, as hap- 
pens in the movies I so love, 
the governor tries to call with a 
commutation, he will have to 
leave the statehouse and wait 
in line at a 7-Eleven, by which 
time poor Gore will be toast. 

By now. though, we ought 
to recognize yet another pat- 
tern: Bill Clinton seemed de- 
termined to appoint an AG 
who was not a political chum. 


Ms. Reno not only does not 
fit that bill, she has conducted 
herself in a manner that has, on 
occasion, displeased both the 
While House and its Repub- 
lican opposition. When she 
saw fit, she four times asked 
for the appointment of inde- 
pendent counsels (for White- 
water, and for cabinet mem- 
bers Ron Brown, Mike Espy 
and Hemy Cisneros), but she 
has not done so when it comes 
to either Mr. Clinton or Mr. 
Gore on campaign financing. 

This record of impartiality, 
of impeccably conducting her- 
self in as nonpartisan a manner 
as possible, has not, however, 
spared her from the repeated 
charge that she is in Mr. CUn- 
ton’s pocket Not only is there 
no evidence for this, but — on 
die contrary — there were ru- 
mors aplenty that the president 
would have p referred her to 
leave the cabinet for bis 
second term. Not for the last 




Dili 


LETTERS TO THE EDITOR 


| |wv \,..ir [, Immigration Reform 

1 1 1 I i i V 1 1 Wl Regarding "Misguided !m- 


- 



■iw-:*- ' 

:»*>•=• — 

< • • ■* 

*•4' 


migration Reform" (Opinion. 
Oct. 4) by Anthony Lewis: 

.Mr. Lewis seems to jiav® 
ignored theputativebenefits of 
having the State Department, 
instead of the Immigration and 
Naturalization Service, take 
responsibility for reviewing 
. applications for U.S. admis- 
sion and naturalization. 

. . I would think that prefer- 
able to the present situation, in 
which a visa can be second- 
guessed by INS officials at 
America’s borders. This fre- 
quently has horrible 'con- 
sequences — note Mr. 
Lewis’s recent report ("Stri/h 
fiSearrhed. Jailed, Expelled," 

. ' Opinion. Sept. 10) on the at- 
rocious treatment of a Chinese 
business woman traveling on 
a visa who was arrested in 
Anchorage, Alaska. 

WILLIS W. JOURDIN Jr. 

• • Bishkek. Kyrgyzstan. 

•. • 

Hounding Papon 

■ Regarding "Papon Is 
Evicted Again. This Time 
From a House Rented Near 
French Trial" (Oct. 17 ): 

• Imagine a sick old man be- 

t g hounded from hotels and 
tuses, unable to find shelter, 
ave we heard that before? 
Fifty-five years ago? Multi- 
plied by millions? 

M JUNE FLANDERS. 

~ Tel Aviv. 

A Real Crime 

■ Regarding ' Washington's 
' Real Crime ? Scandalous In- 
vestigations " \ Opinion. Oct. 
IS) by Richard Cohen: 

Commenting on an inde- 
pendent counsel’s probe into 
the death of the White House 
•tide Vincent Foster, which 
z Confirmed the suicide verdict 
that every competent author- 


ity already had reached, Mr. 
Cohen asks: “Now can we 
have an investigation into 
why there have been so many 
investigations?” 

. He notes that since 1994, 
Kenneth Stair has spent more 
than $25 million achieving 
similar dismal results in one 
probe after another. “Now,” 
Mir. Cohen says, “there’s a 
crime for you.” 

I agree, but this number 
doesn’t tell the whole stray. 

According to the General 
Accounting Office’s latest 
count (Political Notes. Oct . 
2), four independent counsels 
appointed to investigate the 
Clinton administration have 
spent more than $44 million 
in less than three years. I can 
think of better ways to spend 
my tax money. 

RICHARD P. WILSON. 

Mobile, Alabama. 

French Education 

Regarding ", France's Pen 
Romance " (Meanwhile, Oct. 
16) by Anne Swardson: 

As an ever-grateful non- 
French recipient of a French 
education, I wish to reassure 
Ms. Swardson that she did the 
right thing to put her children 
in a French school. If they 
stay there long enough, not 

only will they learn to speak a 
beautiful and important lan- 
guage with native compe- 
lence, but they also will de- 
velop an organized mind, one 
that fan analyze and differ- 
entiate between what is im- 
portant and what is not, what 
we learn to retain and what we 
learn just to develop “our 
little gray cells." 

The emphasis on seemingly 

unimp ortant things, such as ac- 
q airing a neat handwriting and 
memorizing poems and the- 
orems, has served me welL 

D. KAMIL STRRY. 

Cairo. 



fund-raising operation. She 
plods on, angering partisans 
m both camps and, I would 
guess, slowly endearing her- 
self to the American people. I 
give her my highest accolade: 
a swell dame and, in the han- 
dling of the campaign fund- 
ing investigation, a conscien- 
tious attorney general 

The Washington Post. 


P ARIS — The season's fashion 
shows, which have just ended in 
Paris, make a peculiar point 'about 
die evolution of Western society and 
what the preachers. are pleased to call 
its values. 

It would seem that the traditional 
themes of style and commerce have 
been jettisoned: The emphasis is all 
on show. It’s not the information age, 
what’s new, what’s useful, what you 
need to know. It’s the entertainment 
age, ox at a minimum the “infotain- 
ment’ ' age, and the beautiful, usually 

sulky young women on display are 
celebrities, not mannequins. 

In a time when feminism has been 
$0 widely accepted in modem coun- 
tries, they seem as far outside normal 
life where people get dressed every 
day as those Afghan women huddled 
under their monstrous burkas peer- 
ing out at the world through barely 
transparent gauze. 

On the runways, practically 
everything is transparent now, leav- 
ing hole ror the old burlesque an of 
striptease. The models carefully 
place each foot ahead to the outside 
of the other knee, making sure their 
hips roll as wildly as a ship in a 
storm, and also to maintain balance 
on their dangerous spike heels. 

Is there really that much difference 


By Flora Lewis 

in using nearly nude women ostens- 
ibly to sell clothes and making them 
invisible shrouded lumps ostensibly 
to prevent concupiscence? In both 
cases they are objects, hardly people. 

The director Robert Altman set 
out to satirize the high fashion in- 
dustry a couple of years ago in his 

MEANWHILE 

film “Pret-a-Porter.” There were 
some funny scenes, kooky charac- 
ters and what was intended as the 
supreme irony, ihe climactic 
presentation of the models parading 
earnestly stark naked. Somehow it 
didn’t work. It was neither porno- 
graphy nor comic shock. 

The real irony is that the business 
is supposed to be about selling 
clothes, the market, consumer ap- 
peal. Bui nobody is going to buy 
these things unless they are theatrical 
performers or prepared to splurge on 
a crazy outfit for a costume party. 

That’s not the point, the New 
York Times veteran fashion critic 
Bemadine Morris told me once. It’s 
to get media attention for the de- 
signer so that the brand name 


achieves an aura that can then sell 
perfume, sunglasses, jeans, maybe 
even a dress or a suit. 

The media tend to play the game, 
reproducing the extravagant, often 
amusing pictures for the big audi- 
ence and pulling their punches as 
they still strain to pretend they are 
talking abourfashion. 

Suzy Patterson, who covers the 
shows for The Associated Press, 
says: *T like clothes, so I try to find 
something you can write about that’s 
wearable, that’s attractive. There are 
more and more designs to see., and 
less and less usable clothes. No real 
trends.” 

In fact, fashion in the entertain- 
ment age is liberating women from 
fashion. Anything can be considered 
in or oul It's getting almost im- 
possible to look dowdy. 

Paris is striving to regain its place 
as preeminent fashion capital for the 
world. There was a time when that 
meant setting the standard for ele- 
gance. for the implied social superi- 
ority that went with luxury attire, 
beautiful fabrics, superb craftsman- 
ship and rich adornment. 

At the same time, Paris was 
amused to consider itself the care- 
free voyeur's haven. After World 
War L Americans sang a song that 


went, “How are you going to keep 
them down on the farm after they’ve 
seen Paree?” 

There is no more monopoly on 
advice for tastefully flaunting wealth 
and looking sexy. Maybe that's 
globalization, too, but it seems oddly 

No one's going to buy 
these clothes unless 
they're going to a 
costume party. 

uneconomic to pul so much effort 
into producing what scarcely any- 
body would like to buy. 

Still, it is a sight to see, another 
pan of the great fantasy divide that 
separates people into entertainers 
and the entertained. 

It's a stretch to call it fashion, but 
it is a reflection of the way society is 
becoming at once both homogenized 
in the search for superstars and su- 
per-shocks and diffused in the un- 
raveling of convention. The century 
is ending without a grace note, but 
with plenty of choice. 

£• Flora Lr iris 


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INTERNATIONAL HERALD TRIBUNE 
FRIDAY, OCTOBER 24, 1997 





l'\i 1 1 



A Challenging Trek in Tibet 

Incendiary Sunshine, Downpours and Hailstorms 


.... :*.i 


By Paula Budlong Cronin 


DnUSaier 


London’s Killing Fields 

Mystery Stories as Guidebooks 


By Marilyn. Stasio 

New York Tunes Sen ice 


L ONDON — Most people tend to lose 
track of time when they traveL Me, I keep 
forgetting which century it is. This lapsus 
mentis strikes with peculiar force in Lon- 
don, which I attribute to the mystery stories I 
make my guidebooks. 

Strolling Marylebone under the influence of 
Conan Doyle, i suddenly find myself in 1892. 
wrapped in the moist shroud of a thick green fog; 
making my way to 22 IB Baker Street, I stand 
under a hissing gaslight and watch as Sherlock 
Holmes imperiously hails a hansom cab to take 
him to the Diogenes Club. . . 

Alone among the smart crowds dining al- 
fresco in thefasnionable Docklands, I am back in 
1769 with Sir John Fielding, first Magistrate of 
the Bow Street police force (and sleuth in a 
vibrant series of period mysteries by Bruce Al- 
exander); soaking up the squalor of those dan- 
gerous dives among the docks, wharves, piers 
and storehouses that served die sailors of a vast, 
vanished merchant fleet ... 

As the lights go up at the intermission of a 
West End play. 1 scan the audience for that 
distinguished Victorian gentleman in Anne 
Perry’s “Farrier’s Lane” (Fawcett) who is about 
to keel over in his box from the lethal dose of 
opium that someone slipped into his silver 
brandy flask . . . 

And don’t even talk to me about Jack die 
Ripper! 

Lest you think me morbid, hear what Peter 
Ackroyd has to say about the power of evil to slip 
its temporal moorings in London. Time doesn’t 
pass in Ackroyd's brilliantly perverse historical 
novels; it flows in a continuum that allows 
characters bom in different centuries to move in 
the same existential stream. Noting that mur- 
derers are inexorably “drawn to those places 
where murders have occurred before,” he spec- 
ulates that “certain streets or patches of ground 
provoked a malevolence” that lingers in the soil, 
inspiring evil down through the ages. 

English churches (and church graveyards) 
have not been the same for me since 1 read 
Ackroyd's “Hawksmoor” and made the ac- 
quaintance of a satanic 17th-century architect 
who constructs churches on plague sites and 
graveyards. Since this devil-worshipper always 
tops off his handiwork with a human sacrifice, 
the seven churches be builds (among them Christ 
Church in Spitalfields and Sl George's in 
B loorasbury , historically credited to Christopher 
Wren’s assistant, Nicholas Hawksmoor) provide 
the evil inspiration for the latter-day fiend who 
roams the novel. 

A Christmas Tale 

In “The Trial of Elizabeth Cree” 
(Doubleday), Ackroyd plunges into “a sinister, 
crepuscular London, a haven for strange powers, 
a city of footsteps and flaring lights, of houses 
packed close together, of lachrymose alleys and 
false doors” to evoke the Ratcliffc Highway 
murders. These monstrous crimes, in which two 
families were butchered in their beds in Wap- 
ping during (he Christmas season of 1811-12, 
anticipated the atrocities of Jack the Ripper by 
more than 75 years. 

The senseless savagery of the attacks promp- 
ted Thomas De Quinary, in his famous essay 
"On Murder Considered as One of the Fine 
Arts,” to define one who kills, our of "pure 
voluptuousness" as “a solitary artist . . . self- 
supported by his own conscious grandeur.” 
P. D. James, revisits the same fertile, if poi- 
sonous. ground in "The Maul and the Pear 
Tree" (Warner). Writing with the police his- 
torian T. A. Critchley. she makes a strong case 
(hat the presumptive killer (whose quaint pun- 


ishment was a wooden stake through the heart) 
was, after all, an innocent man. 

Ail of this just goes to show that murderers 
aren't the only ones who are drawn to the killing 
fields of London. Clutching their own guide- 
books (from Shakespeare and Dickens to Henry 
Mayhew’s “London Underworld’ ’), authors 
keep returning to the bloody old haunts, picking 
through the nibble of history for new insights 
into the city’s criminal past — and fresh ev- 
idence for rewriting it. When last I climbed the 
stone steps in (he Tower of London, 1 heard the 
ghostly voice of Richard in begging to borrow 
my copy of “The Daughter of Time" (Buc- 
caneer), in which Josephine Tey’s Scotland 
Yard detective exonerates the reviled monarch 
of regicide in the cruel murder of those poor hole 
princes in the Tower. 

yellow oloom Margery Allirigfaam can 
make a routine trip to Paddington Station feel 
like a stopover in helL “The fog was thickening 
and the glass-and-iron roof was lost in its greasy 
drapery,” she writes in her postwar mystery 
“The Tiger in the Smoke” (Carroll & Graf). 

Passengers materialize from the yellow gloom 
of this “bone-chilling and menacing” fog, only 
to disappear in the moist plumes of steam bil- 
lowing from waiting locomotives. Frankly, I 
forget the plot point to this scene. But whenever ' 
I take a London train, even from modernized and 
minimized Paddington, I recall the thin light and 
muffled sound of that fogbound station, and feel 
once more “that tremendous ak of suppressed 
excitement which is peculiar to all great railway 
stations." 

James, whose atmospheric style makes her a 
worthy successor to All ingham. has said that she 
always begins with the setting when she writes a 
mystery. Taking the Thames for her territory in, 
"Original Sin" (Warner), she makes it the an- 
cient. tainted bloodstream of a generational 
crime story set in a mock- Venetian “palace" on 
• the riverbank. "As if physically drawn by the ■ 
strong tug of the tide, the faint evocative sea 
smell,” Characters come and go (and are found 
floating) on this "narrow glitter of shivering 
water,” which bears on its relentless tide all the 
crimes of its history. 

T HE trouble with this kind of writing is that 
you are doomed to recall every gory detail 
when you return to the scene of the crime. 
Ruth Rendell and Anne Perry, in particular, have 
left me with some very special memories of 
corpses hanging from tire lampposts on West- . 
minster Bridge, impaled on die spiked railings 
that surround Regent’s Park and crucified in a 
dark alley in the West End. 

Jollier scenes can be mined, to be sure, from 
English mysteries. Although my first inclination 
when taking in a trial ar the Old Bailey is to lot* 
for the crimson roses that were on the bench 
(“they looked like splashes of blood”) when 
Harriet Vane stood in the dock for poisoning her 
lover in Dorothy L. Sayers’s “Strong Poison” 
(Harper Paperbacks), I will also search the ranks 
of barristers for nunpv-dumpy Horace Rumpole, 
the adorable reprobate who practices his version 
of the law in John Mortimer's comic mysteries. 
And l once spent an amusing hour in Lincoln’s 
Inn Fields reading “Thus Was Adonis 
Murdered” (Dell) and trying to pick out, among 
che clever young things babbling on the grass, that 
“decorative hole group” of young banisters 
(Ragwort, Cantrip, Selena and Julia, by name) 
who speak so ironically and cany on so out- 
rageously in Sarah CaudweU's witty mysteries. 
But who can linger for long in such a pleasant spot 
when, just down die Embankment, there might be 
a corpse dangling from Biackfriars Bridge? 

Marilyn Stasio writes the Crime column for 
The New York Times Book Review. 


L HASA —Years ago, on a back street in 
Katmandu, I happened on Heinrich Har- 
rer’s autobiographical "Seven Years in 
Tibet” It’s tiie kind of book you read in 
a single sitting; then, if you’re like me, you set 
out for Tibet yourself. . 

I came close several times. Once, .peering up 
from Everest “Base Camp in Nepal and knowing 
that climbers also reached the world’s h ig h est 
summit from another Everest Base Camp in 
Tibet. And once, striding across the ridge ap- 
proach to Eandhenjunga (the world’s third 
highest mountain) and looking down into a yak 
pasture that somewhere across an invisible line, 
became Tibet And again, hiking at 14,000 feet 
(4,260 meters) north of Manaslu (seventh 
highest mountain) and. happening on an un- 
guarded frontier crossing marked by a heap of 
stones and prayer flags. . 

This year, I finally made it 
The trip — more specifically, the trek, by 
definition “an arduous journey” — was the first 
ever made by the outfitter. Mountain Travel- 
Sobek, in this part of southern Tibet. We were 15 
experienced trekkers (a cheerful mix of Amer- 
icans. (Tanariifln g Germans from ages 21 to 
65); three seasoned leaders (Cathy Ann Taylor, 
an American on the eve of marriage to a Tibetan: 

“Little” Dawa, a Nepali Sherpa; “Big" Dawa, 
a Tibetan jack-of- all-trades and our Chinese 
official guide): five Nepali camp staff (four 
Sherpas and a Chetri); five Tibetan yak herders; 
21 yaks (Tibet's heavy-duty beasts of burden as 
well as sources of food, shelter and clothing), 
and four horses (constant reminders that Tibet 
has no emergency helicopter service). 

With an average altitude of 13,000 to 15,000 
feet, Tibet is the highest plateau on earth. We 
were eager to get our conditioned bodies onto the 
trail, but we mew that the only way to prevent 
altitude-related problems (headache, nausea, 
Hirrinesff and shortness of breath at the min- 
imum, death-de aling pulmonary edema and 
cerebral edema in the extreme) was first to give 
our bodies time to acclimate. 

Eye-Level Views 

Thus, after our flight from Katmandu to Tibet’s 
only commercial airport — the pilot dipped the 
plane to give us eye-level views of Everest, 
Kancheujunga, Lbotse, and Makalu, four of the 
world's five highest mountains — we spent three 
’days hang in g around the Tibetan quarter of 
Lhasa, which has an altitude of about 12,000 feet. 

■ not counting the 13-story climb to the top of the 
Potala Palace, Lhasa’s imposing landmark. 

hi working monasteries, historic palaces, and 
crowded bazaars, we were essentially the only 
Westerners, sharing Lhasa with Tibetans whose 
costumes have scarcely changed in hundreds of 
years: belted, full-length robes with sleeves long 
enough to double as gloves and striped aprons 
for married women, who braid colorful cloth 
strips into their hair and wear small fortunes in 
turquoise, coral and silver jewelry and prayer 
amulets. 

Few of the Tibetans we encountered spoke a 
word of English. But one day when I was caught 
in a press of pilgrims pushing around a chapel 
deep in the labyrinth of the 15th-centmy Sera 
Monastery, a kindly monk stepped forward to be. 
sure I spotted the Horseneck Buddha and then 
took my arm. “Carefully, madam. Very slip- 
pery-” The steps' were slick with the yak butter 
that fuels the flickering lamps. . 

Finally, parceled with our gear and crew into 
four-wheel-drive Toyota Land Cruisers and a 
truck, for one very long day we bounced and 
swerved over a rodc-aod-dirt track punctuated 
with sudden stops, diversions, fords and wash- 
outs attributable to the swollen Kyi Chu that 
raced along beside us. Men fished there from 
coracles of yrak skins and willow snakes. 

Our trek began in a yak pasture below Rutok 
Gompa, an 1 lth-century monastery that looked 
half-destroyed and abandoned. But in the deep- 
ening evening, some of us climbed the 400 feet 
to test our new tolerance for altitude. Suddenly a 
handful of young monks materialized on a crum- 
bling balcony, picturesque behind arow of pray- 
er wheels. We barely had time to cake their 
photograph before they were gone. 

oiazino yaks And so it went In randomly 
alternating incendiary sunshine, downpours and 
hailstorms, we walked up and up into a world we 
had supposed long gone. Tune and again, enor- 
mous landscapes opened before us, populated 
only by grazing yaks, sheep and goats and the 
nomads who tend them, and carpeted with 
geranium, mock orange, primula, iris, primrose, 
poppy and a purple flower whose root makes 
rakshi, a local firewater. Once wild sheep picked 



. * 


Potala Palace in Lhasa, where the trekkers spent several days getting acclimated. 




their way down a cliff beside us. J i n gl in g bells 
nwanr a p proaching horsemen, who loped about 
day and night, singly and in groups, sometimes 
pansing to stare at us. - 

The first tim e we approached a nomad fam- 
ily’s four-sided tent, made of black yak hair, 
puzzled adults and children standing outside 
gestured for us to come in. The one-room home 
for an undefined number of adults and children, 
including a newborn hidden inside a blanket, 
was as tightly organized as a ship’s cabin, and 
centered around an (men fire on tine floor. Enor- 
mous pots simmered over embers of yak dung 
raws and juniper branches. Dried yak cheese 
hung from a line. Heavy blankets were folded far 
up toe walls. 

“Giving .good service” is one way Tibetan 
Buddhists insure for themselves a less sorrowful 
next life. Once, when we were hiking through a 
meadow, a man and a woman and their children 
came scampering across streams and lumpy yak 
paths from their tent half a mile away with a pot 
of yak tea and a small cup. When it became clear 
that one cup wasn’t enough, one child ran back 
for more and a string of yak cheese — which 
tastes and feels like a salt lick. 

We spotted Dzinchi from miles away, where 
the Woka Valley narrows and the horizon is 
snowcapped Himalayan peaks. When we 
entered the town, with houses and walls of turf 
and weatber-dried mod bricks, it was so deserted 
we supposed it must be the winter home of 


highw than the last, so we kept climbing. 
Whenever we looked back, we glimpsed robed 
monks who hadn’t shown themselves earlier; 
solemnly swinging their prayer wheels while 
they watched our progress upward. 1 

At one of the highest caves, a monk toH 
“our” monk, who told Dawa, who told us, that 
the cave once held sacred texts that cold the 
caves’ ancient story. But in 1959, the Red 
Guards destroyed them. 

Gyeiong La (17,200 feet) is a moonscape with 
magnificent views of snowcapped mountains 
and green valleys. Over the centuries, pilgrims 
have honored the Dalai Lamas’ pilgrimages by 
paving the top with flat stones and building a 
forest of cairns (some of them works of an). 

From here the track leads down into yet an- 
other Shangri-La, the lush scenario that repeated 
itself every day, again and again. Little Dawa 
showed os a path that leads between an ancient 
Mani wall (stones carved with Buddhist prayers) 
and a brick wall just the height for Dalai L amas .— - 


Then we rounded a comer into the 
square and into an enormous crowd. The whole 
town was waiting for us. 

T HE monastery (or gompa), founded in the 
10th century by a celebrated monk, was 
padlocked, but a monk peering out a crack 
unlocked the massive door just long enough for 
us to slip in. Badly, there wasn’t much to see. In 
.1959, Red Guards in the beat of the Cultural 
Revolution had “deconstructed” the gompa 
along with thousands of other monasteries in 
Tibet Now it is being rebuilt even with some 
Chinese funds, but the Red Guards had de- 
stroyed or stolen all the statues, so the ones we 
saw were new. 

The way out of Dzinchi begins with a steep 
climb up to a ridge. When we looked down, there 
was everyone in town looking up, watching us ■ 
go. Wehad brought along one or the 12 monks 
still living at the gompa (500 lived there in the 
old days), a well-fed man who ran up trails we 
took at a yak’s pace and led us up the mountain to 
six monastic caves. 

One of the caves was occupied by a nun, her 
son and a grandson. She had been praying for 
years for Guru Riopoche, a teacher revered as the 
second Buddha, in a cave crowded with butter 
lamps and other religious relics, while she lived 
in anothe r one beside it Walls of dried juniper 
branches shielded both caves fro m (he weather. 
Only the worn dirt path outside the caves broke 
the 500-foot drop to the valley floor below. 

In another, three young monks contemplated 
us from their mud- brick balcony. They said they 
had been sent from Sera Monastery to meditate 
for three years, three months, and three days, and 
that three other monks were inside the cave 
praying but could not be seen or talked to. 

By now we were prowling a vertical village of 
networked stone-walled paths built on precip- 
ices past padlocked wooden doors that seemed to 
lead directly into the mountain. Each cave was 



* o 


Roof of Jokhang Temple in Lhasa. 

to sit in meditation. We were now just a day’s 
walk from Lhamo Latso. 

The last night we pitched our tents outside the 
16th-century monastic complex of Chok- 
horgyel, a ruin first destroyed in 1718 by in- 
vading Mongolian Dzungars and then blasted 
with dynamite by Red Guards. Only a few 
monte live in Chokhorgyel now, sending £ 
novitiate under a shoulder yoke of buckets to th£* 
river every morning for water. 

pilorimaue spot It is primarily famous as 
the former living quarters of the Dalai Lamafc 
when they ma de pilgrimages to Lhamo Latso. • 

The walk put onr fitness to the test For our yak 
herders, the destination, a 17,800-foot ridge, 
above the lake, was aperk. They set out at dawn 
on the 3,000-foot climb, hours before we set out 
ourselves. A few feet short of the ridge — axwoi 
foot-wide precipice cluttered with many strings 
of prayer flags and the Dalai Lamas’ stone' 
throne — we met the herders returning. 1 was 
focused on scrambling for footholds and hand-*, 
holds when the first man stopped me and took 
my hand. He began to chant, and looked s#,j 
intensely into my eyes that I felt I had to take ofil 
my glacier glasses to return his gaze. Mostly J7 
was i n t im id at ed by the climb, but there for a' 
moment, held in his stare, I understood. 2 

Paula Budlong Cronin, a veteran trekker who. 
gavels often in Asia and Africa, wrote this for i. 
The New York Times. 


THE cat COLUMN 


SEAT Arosa: A Tot That’s Snappy, Efficient, but Not Trendv 

By Gavin Green degoy fee plane; yd d on' t mind ad- • - „ .. J 


HERE has been a plethora of 
and i 


T cheekily styled and intriguing 
looking new baby cars unveiled 
this year. The SEAT Arosa isn't 
one of them. 

It is undoubtedly highly significant, 
marking the entry of SEAT'S owner. 
Volkswagen, into the baby car sector. 
But a cute little head turner it isn’t. The 
Arosa looks conservative, staid even, an 
upshot of VW’s belief that small car 
buyers want reassuring, everyday 
shapes in their driveways, rather than 
styling from outer space. The Ford Ka 
and Mercedes A-class look like they 
belong to another age. The Arosa looks 
like a downscaled Volkswagen Polo. 

Mercedes. Ford, VW (and soon Gen- 
eral Motors) arc all jumping into the 
baby car sector, joining longer term 
players such as Fiat and Renault, be- 
cause the small car is currently in vogue. 
Sales of tots are booming, at least in 
Europe, They’re seen as trendy, eco- 
logy-friendly and sensible. Whereas a 


destroy the planet and don’t mind ad- 
vertising your stylish common sense. 

. Don’t let the meaningless SEAT 
moniker put you off the Arosa. SEAT has 
never really stood for anything, other 
than cheap Spanish cars, and nowadays 
probably has less worldwide awareness 
than virtually any other car maker. It 
started out life making cheap Fiats under 
license; and kept on doing so until Volks- 
wagen bought it in 1985. It now makes 
cheap VWs. In an attempt to give it a 
brand identity — the car industry buzz- 
phrase at present — VW is trying to steer 
it to a trendy, youth-oriented niche. 

In Volkswagen Style 

Not only is the Arosa not very trendy 
looking, it also isn’t very Spanish. It is 
designed and built in Germany by VW. 

The styling may be ordinary, bat the 
car is well made— as good as a Pok). The 
cabin is also well trimmed and finished, 
although — in typical VW Style — grays 
and blacks are the dominating shades. 


completely at odds with SEAT’S young- 

and-cheerfuL cotorful-and-Spenish mar- 

few’ yeans back, you only bought a small keting niche. It is more Ruhr coalwoiker 
car if you couldn't afford a bigger one, than flamenco dancer. The doors shut 
nowadays you buy a small car because with a reassuring VW-tike dunk, 
you want good value, don’t want to The instruments and switches are 



acceptably. 'Hie gearshift, although z 
tittle : ootchy, is fine, and even with the* 
Mall eagine, there is still a pleasure to 
be bad from driving the Arosa. The: 
engine squads willingly, and comes. 
sctoss as a big-hearted unit, even if it i&c 
short on lung power. -m 

Besides, there is something intiin^ 
sicaUy enjoyable about driving smalV. 

S : “Sr^*W» H 


easy to see and to twirl, visibility is 
good, and everything works well Yet a 


and the older Renault Twingo, would be 
welcome. TheAroea is a cheerless, if- 
efficient, place to spend time. 

The front seats are roomy and com- 


fortable, but backbenchers suffer. Un- 
like the A-class, which has an enormous 
cabin, or the Twingo, which has sliding 
rear seats, this is a conventionally en- 
gineered small car. So, die back scats 
are tight. 

P OWER, in our test car, came 
irom the familiar l . 0-liter VW 

D . .^“-as.asedmthebaseraodci 

of Peking, father helped 

gearing, lie Arosa whizzes'^ £ a POWer a5SISI ’" 

fivelyenmghpace, tat on the open road ““kWta Sthv r 

the engine complains. ■ ^ ,1- " eas Y **e why Europeans are’ 

My test car also had air conditioning ® <&«™ize.‘ 

proof that die modem small cariTno hvemciues. It is also 

longer a saipped-down, basic mode of 
transport. Trouble was. whenever vou 
hit the aircon button, it felt like two of 

the cylinders were switched off. The 

cabin may have been cool, but the poor 
tittle ******»*“ ">«• > — j- -L- — « r - 

< 

car . w J“ i a small engine, cynics migh t- 
say? But they would be wrong The 
new-age tiny tots now deliver mostly 
proper, grown-up perfo rmance as op- 
posed to the tottering gait of a toddler. 

1 '°" IUer ’ however ’ “ j^too 
ft 


easy to see How Volkswagen will 
prosper with its small-car offering. - 

S un-J- 

SEATbadgt “ 8h(mld ta weflrtn S * 

'! p ^. T , Arosa . 1 -0- About SIl.OOOi 
? ehgme, 999cc. 50 BHP at 
ive^speed manual gearboxi 
p a Wp M* (^4 mph). Ac^ 
AvJT * 0 ; 100 *** to 15 - 5 seconds;- 
lOOta? fue ““tonption; 5.8 literal 

Next: .The VW Golf ■ 



well, however, and rides Ca-^tmg^S^ * *** qfj 





FREQUENT traveler 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


PAGE 11 


/ 


t! H.iiJvj 


Scratch That Power Shower 



By Rogfer Collis 

Iniermiitmal llerui d Tribune 

B neeriTrf 51 °° you sinc erely 

n«d an eiionnoas room with a 

waUt-m power shower aad a 
galaxy of designer toiletries a 
ung-size bed, a club lounge with com- 


botal meets 95 percent of business trav- 
elers needs. The difference between a 
tnree-star and a four-star in my opinion is 
a shghtfy smaller room and 24-hour room 


gardless of published rates, prints a sim- 
ilar picture of spiraling prices, notably in 
the emerging markets of Asia, South 
America and Eastern Europe where ne- 
gotiated rates are less common and cor- 


sennce. What you’re paying for in the 

category is service and space, porate travelers are more ready to pay 
— b — ~ ,-w, * ciud lounee with u then ’ °* course, frills — power five-star prices to ensure standards of 

plimentary cocktails? Would it beaS£^ s vexsas ordinary showers, for ex- 
hardship to forgo having your bed “Sfel 


“Three-star hotels are iacreasmgly 

low? How Often do vou use thp°h^ fJ I J ctlV0 to business travelers.” savs 
,f ao - v ™ use ™e hotel Melody Goodman, a director of Gray 

I^wes Internet Travel in London. 
“Many now offer business services and 
many of the facilities business travelers 
nee d — even small things like making 
sure the restaurant or coffee shop is open 


fitness center or aiKtaE 

A growing number of business trav- 
faced with the prospect of steep 
m hotel Drices. 



pnces 

comfort. 

According to Hogg Robinson, the av- 
erage paid-for rate worldwide rose by 2 
percent in the first six months of the year 
to £8L29. Hong Kong emerges as the 
costliest city with an average paid-for 
rate of £166 (an increase from 1996 of 
10.21 percent) with Perth, Australia, in 
1 13th place with rates of £48.28 (a de- 
crease of 8.77 percent). Bombay and 

a 


strong demand as the elnhaf restaurant or coffee shop.is open crease of 8.77 percent). Bombay an 
improves, are discovcriL that »»2f? y Jr Io . n ger hours- 1 think they're filling a New Delhi (£154) are in 4th place with 
enjoy as much comfortas thev d ^ Uute n,chc J ul market and are rise of 8 percent; New York (£138) in 9lh 

almost as much as thev asnhJ^f! 2 fferin S a good alternative to four and place, a rise of 4.3 percent Tokyo (£1 18) 

trading down from af«S delu^ five - star I™!*''*'*-" ‘ 




*% 


mi 

!■**•>- 

4 

&*. *•* 

* t 

mk. 

■ - 

ti&. -V ‘ • 

A*'.; 

*** - 

, 


totel to four stars or even three stare. 

X You might call it trading across rather 
lhan trading down. The term ‘’mid-mar- 
ket or budget hotel” no longer means 
c$eap and cheerful — at least in the 
pejorative sense. Lower prices are tvo- 
i$ally reflected in smaller rooms, fewer 
mtst ana restaurants, and fewer staff to 
spule and open doors and forget your 
hP®®- But you can expect a decent room 
apd bed (hold the nylon sheets!) a direci- 
c$ri phone and desk, satellite TV, a mo- 
Aatrrfor your laptop, and tea and coffee- 
making facilities. Business, travelers 
. . these days want to be self-contained in 
their room, independent, quick off the 
mark. They want to be able to press their 
- X; trousers or iron a blouse without calling 
~ .'.room service and grab a coffee and a 
. . - . jprosfsani in the lobby on the way out 


Worldwide Boom 

A worldwide boom in business travel 
has led to a dramatic rise in hotel room 
rates and occupancy levels — especially 
at die lop end of the market The Amer- 
ican Express European Business Index 
for the second quarter of 1 997 reports 
that published corporate hotel corporate 
rates (typically, 5 to 10 percent less than 
rack rate) are set to climb steeply in 
many business des tinations 

Western Europe showed some of the 
highest price increases. “Deluxe” hotel 
rates rose by an average of 13 percent 
over last year — the largest increase 
within any region or class ofhoteL * ‘First 
class” and “tourist class” hotel rates 
rose by between 9 percentand 1 3 percent 
— with the highest increases in Britain 

and Bel- 
in France 
Germany fell by 3 
nt — attributed to the growing ef- 
of the recession and more new hotels 
being boilL . 

Individual cities showing the highest 
year-on-year increases in first-class hotel 
prices were Bombay and Chicago (both 


is 17th, a decrease of 6 percent; Zurich 
(£ 1 1 3). a decrease of 1 9 percent; London 
(£104.87) is 41st, an increase of 8 per- 
cent; Singapore (£103.16) is 47th with 
zero increase, closely followed by 
Frankfurt t£103) with a decrease of 6 
percent. 



, . |Hi HE expectation in five-star _ 

. ‘ • ■.< however, is that guests need 
. • ■* waited on hand and foot and order 

- • everything they need. Unless you need a 
: good address to impress, there may even 

be times when you feel more comfortable 
. ' spying with fewer stars. Especially when 
T - femmes to settling the bill. In London. 

7 J for example, the published rate for afive- m, 25 percent); Hong Kong (17 percent); 
• ' star deluxe hotel is more than £200 (about Singapore (5 percent); Sydney (11 per- 

• $325) a night, compared with around " — 

- £120 for a premium four-star, £85 for a 

- good three-to four-star, and £50 for a 

• “budget” place. 

- * Borge Ellgaard, vice president of the 
hotel relations group in Europe for Amer- 
ican Express, says; “A good four-star 


cent); and New York and San Francisco 
(12 percent). New York is the most ex- 
pensive city in the United Stales with an 
average hotel room rate of $21 9. 

Hogg Robinson Travel’s Hotel Rales 
Survey for the first half of 1997, which 
reports on average hotel rates paid re- 


THE real rates However, Carolyn 
Moore, divisional manager for hotels at 
Hogg Robinson Travel in London, says: 
“Hotel prices aren’t rising quite as much 
in real terms as the hype fells us when 
you compare published rates with av- 
erage paid-for rates negotiated by 
companies —between 25 and 45 percent 
off the rack-rate. Hotels are doing ex- 
tremely well to get 12 percent of their 
total business at rack-rate. The problem 
for companies in strong markets like 
Britain and North America is that hotels 
are not respecting negotiated rates when 
it comes to last room availability. Hotels, 
like airlines, have become smarter at 
yield management — adjusting room 
rates in line with occupancy and de- 
mand. You may be told the hotel is full, 
but maybe only at your rate. So you may 
want to negotiate a higher rale — maybe 
only a 25 or 30 percent discount — to 
guarantee last room availability or an 
upgrade. 

“Hong Kong is obviously at the top of 
the survey — although since the hand- 
over we’ve seen a slight decline in rates. 
Japan — one of the biggest travel des- 
tinations — has shown ahuge 1 7 percent 
decrease in rates due partly to the re- 
cession and more sophisticated nego- 
tiated rate programs.” 


f 


OVIE GUIDE 


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Jtorch 

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4 

IjhEN NE VA PLUS 

greeted by Claude Chabrol. 
fiance. 

(Isabelle Huppert). 
to the brim like a small 
v&al of poison, seduces the 
topless victim, while her 
partner Victor. (Michel Ser- 
rauh), moves in for the rip- 
cffF. The couple operates m 
casinos. luxury hotels and ski 
resorts, wherever there is a 
seminar For dentists or other 
suckers of a society they 
mock. Id between, they live in 
a.'Stuffy Parisian apartment, 
snacking on caviar. Betty 
picks up a boyish Swiss 
banker in the Alps (Francois 
Cluzet), who turns out to be a 
hit crooked himself: He says 
he loves her and wants her to 
;aze his heist With the lure 
Swiss gold, they follow 
Guadeloupe, and dis- 
cover that they, too, have 
been had. Chabrol, who signs 

* his 50th film with “Ricn ne 

• va plus,” has devised an in- 
fernal machine that could roll 
aloag quite nicely — if he had 
given it someplace to go. In- 
stead, the characters are 
caught inside, stalled by in- 
ertia. Once ensconced in the 
Alps, they need the theatrics 
of fake identities and scams to 
keep up pretenses. Huppert 

black wig, red nails — is 
up to act like a wicked 
girl in a Chabrol film, 
lull’s sourpuss Victoria 
master of trickery, is a thin 
disguise for the director. The 
audience wants to share in the 
Chabrolian feast but there's 
simply not enough fun to go 
around. The timing is slug- 
gish, the mountains oppress- 
ive, and this is a movie in 
which nobody — including 
the director — has anything to 
say. (Joan Dupont. IDT) 


more of a well-acted morality 
play that could take place in 
many big Western cities, 
which might make it easier to 
grasp for international audi- 
ences than some of his other 
films more steeped in Spain. 
Almodovar shows here that 
the bad guys come in many 
stripes, and even a bit of re- 
pentance cannot always save 
them in the end. 

(Al Goodman. IDT) 

Devil’s Advocate 

Directed by Taylor Hactford. 
United States . 

Meet Faust in fancy cowboy 
boots: Kevin Lomax, the law- 
yer played by Keanu Reeves. 
Lomax is at the heart of a high- 
concept sentence (“Slick 
yuppie is co-opted by slicker 
New York Satan”) that has 
been spun into a lavish-look- 
ing, cleverly entertaining 
morality play about selling out 
to Manhattan’s temptations. 
This time the devil, the aptly 
named John Milton (Al Pa- 
cino), is the head honcho at a 


law' firm. High on his own 
career trajectory, Lomax is in 
a mood to say yes when a 
strange lawyer flashes a big 
check, luring him to Milton's 
firm. While there is no small 
irony in a big Hollywood 
film’s finger- wagging about 
the seductions of wealth and 
power, “Devil’s Advocate” 
does avoid clumsy moraliz- 
ing. It helps that the film finds 


Faustian deal malting and 
yuppie ambition not very dif- 
ferent In the ultimate lawyer 
joke of a movie, it becomes 
clear why Kevin's legal tal- 
ents are the devil’s instru- 
ments of choice. Milton even- 
tually notes that nobody on 
earth could do his bidding bet- 
ter than a well-trained band of 
attorneys. 

(Janet Maslin . NYT) 








( *e>/e tie ’Jr 



Uer * 

Lfti.-Jreviomie. Jrrwi\ m-'e 

ENDEZ-VOUS WITH A VINTNER 

Cooking demonstration and wine tasting 
Aloxe- C orton, Cap it ain Gagnerot 
Tuesday, November 18: 7:00-10:00 p.m. 550FF 
For reftervations, telephone : 01 45 16 50 50 



\nl 


ft 


if 


Live Flesn 










r& 

i^’ry 

; 

as*; 

•- *r* : 




l][j Directed by Pedro Alnwdo - 
1 . var. Spain. 

In Almodovar's 12th movie 
since bis debut in 1980. he 
• - does' not build the script 
•around a dominant female 

« rsonality, which has been 
► hallmark since “Women 
the Verge of a Nervous 
Breakdown” a decade ago. 
Instead, the two most enga- 
. characters in ‘‘Live 
” are men: a paraplegic 
ex* cop (Jorge Sanz) and a 
young ex-convict (Libcilo 
Rflbal), vying for the same 
woman (Francesca Ncri) in 
Mhdrid. Almodovar dampens 
his usual humor and flashy 
stylized sets, emphasizu^ a 
jwsion that carries the film 
forward quite well- The ex- 
con’s dogged pursuit of hi s 
bve interest recalls a similar 
pfel from the 1989 film “Tie 
Me Up, Tie Me Down.’/ But 

acre, the intrigue is richer, 
ikhough some telltale clues 
forewarn the finale. Alnw- 
■ovar gets in a few jabs at the 
Tranco dictatorship, and re- 
veals some of Spain’s idio- 
syncrasies. Bui the film 


is 


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New “Visit Japan" fares allow ANA passengers visiting Japan from over- 
seas a 50 percent discount on up to four domestic lli^Tts with 14-day 
advance purchase. 


BRITISH 

AIRWAYS 


France 

to United States 


Round-trip fares from Paris to New York, 2,500 French francs ($420); Parrs- 
Washington, 2,560 francs; Los Angeles and San Francisco, 3,400 francs 
and Miami, 3,100 francs. Bordeaux, Lyon, Marseille, Montpellier, Nice. 
Toulouse to New York/Washinglon, 2,580 francs; Los Angeles, 3.590 
francs: Chicago, 2,750 francs. Conditions apply. Until Oct. 31. 


EMIRATES ~ Britain 

to Hong Kong 

Round-trip fares from Heathrow, Gatwick or Manchester (via Dubai) tor 
£387 (S630). You must book before Nov. 30. For travel until Dec. 5. 
Traflfinders, (44-171) 938-3939. 

OLYMPIC t- London to 

AIRWAYS ; Johannesburg/ 

Sydney 

Two-for-one in business dass (via Athens) tor £729 (SI. 190) per person 
round trip to Johannesburg and £1 ,134 to Sydney. Until March 31 Travel- 
Mood (44-71) 258 0280. 

QATAR ^ London to Middle 

AIRWAYS k East 

Passengers buying a full-fare round-trip ticket from London Heathrow to 
Doha, Abu Dhabi, Dubai, Kuwait, Jeddah. Dhahran. Bahrain or Katmandu 
will be upgraded to the next class. For travel until Dec. 31 . 

SINGAPORE AIR- ; Britain to Asia 

LINES J 

Round-trip fare from London or Manchester to Singapore. Kuala Lumpur cr 
Penang for £398 ($650). Certain conditions apply. You must book before 
Nov. 30 and complete travel by Dec. 10. 

SINGAPORE AIR- ” Britain 

LINES to New Zealand 

Round-trip fare of £795 from London or Manchester to New Zealand vet 
Singapore with optional stopovers in Singapore (or Bombay tor departures 
from Manchester) in both directions. For travel before Nov. 30 or between 
Jan. 21 and March 31. TravelMood (44-71 25S 0280). 

SWISSAIR/DELTA < Switzerland 

AIR LIMES ! . to United States 

Round-trip fare for 548 Swiss francs (S370) from Zurich, Basel or Genera to 
Chicago or 558 francs to any of 29 further destinations. For travel between 
Nov. 1 and Dec. 10. 

UNITED Hong Kong to 

AIRLINES North America 

< 

s 

> 

1 

v‘-'\ v . . ' . • 

GRAND HYATT Atlanta 

Mileage PI us members can buy round-trip tickets from Hong Kong lo Lcs 
Angeles. San Francisco. Seattle or Vancouver from 2,900 Hong Kong 
dollars ($375); and to New York or Chicago for 3.800 dollars You must leave 
before Oct 31. Tickets are valid 90 days and you are allowed one 
stopover. 

It E R E TO *TAir 

Touch Weekend Package" for SI 69 includes room with breakfast for two and 
valet parking. Until Dec. 30. 

HYATT REGENCY ] Hong Kong 

"Winter Package" sin^e/double for 1 .650 Hong Kong dollars ($213) includes 
buffet breakfast Minimum 3-night stay. Nov. 20 to March 15. 

MTHi- \ Tokyo 

CONTMENTAL 

TOKYO BAY 

Single or double "superior'’ room for 25,000 yen (S206). Until Dec. 30. 

HAINAN MANDARIN < Hainan. China 

Introductory rate of $80 single/double with breakfast. Until Nov. 30. 

PARK HYATT \ Los Angeles 

< 

$ 

"Weekend Package” “deluxe” room single or double for SITS includes 
continental breakfast Until Dec. 31. 

SHANGHAI JC \ Shanghai 

MANDARIN * 

“Deluxe" rooms for $120 per night single or double. From Dec. 10 to Feb 
28. 


Although the IHT carwhity checks these offers, please he forewarned that some travel agents maybe unaware otihem. or irabtoio book them. 


INTRODUCING SHERATON SMART ROOMS.™ 



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- Dual line speaker phone with 

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■ Large, comfortable beds 
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For reservations and information, call 
your trawl professional or ITT Sheraton 
toll free: l) JLi 0800353535. Germany: 
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page 12 


INTERNATIONAL HERALD TRIBINE, FRIDAY OCTOBER 24, 1997 


ARTS GUIDE 


RECORDINGS 


PAG 




■ELSIU M 


Bnnsas 

Palais das Beaux- Arts, tel: (2) 
507-8466, dosed Mondays. To 
4: “Kunst in da Bank. A se- 
®°flQn of 200 wortcs from a col- 
lection of several thousand held by 
Banque Paribas- Features land- 
scapes from the late 15th to the 
^rly 20th century; works by 
Rubens. Brueghel and Jordaens; 
and modem works by Ensor, Van 
Rysselberghe and Rik Woutsrs. 

M BRITAIN 

London 

National Portrait Gallery, tel: 
{171) 306-0055, open daily. To 
Feb. 1 : “Raebum." The portraits by 
the Scottish painter Sir Henry Rae- 
burn (1756-1 823) mirror Edinburgh 
and Scotland at the end of the En- 
lightenment Approximately 70 
works from the National Gallery of 
Scotland and private collections. 
Victoria & Albert Museum, tel: 
(171) 938-8441, open daily. To 
Jan. 18: “Carl and Karin Lars son: 
Creators of the Swedish Style." At 
the turn of the century, the 
Laissons decorated their home 
with Japanese prints, British Arts 
and Crafts Ideas and Swedish folk 
designs. The V&A displays some 
of their furniture, paintings and 
photographs, as well as watercol- 
ors by Larsscn himself. 

M~F R ANC ■ 

Paris 

Gateries Nationals du Grand 
Palais, tel: 01-44-13-17-17. 
closed Tuesdays. To Jan. 5: "Les 
I be res." Contemporary to the 
Phenitians and (he Greeks, the 
Iberian ch/Hizabon developed on 
the western side of the Mediter- 
ranean from the 6th to the 1 st cen- 
tury B.C. The exhibition features 
sculptures, ceramics, gold jewelry, 

saver plates and bronze ex-votos. 
Also, to Jan. 26: “Georges de La 
Tour. 1593-1652." Scenes with 
beggars, players of the hurdy- 
gurdy and holy figures, as well as 
figures caught in the light and 
shadow of candle names. 

Musee d’Orsay, tel: (01) 40-49- 
48-14, dosed Mondays. To Jan. 
18: "La Collection Havemeyer 
Quand PAmerique Decouvrait Hm- 
pressiortisme." Henry Osborne 
Havemeyer, a sugar industry bar- 
on, and his wife gathered In their 
New York house, decorated by 
Tiffany, a collection of Chinese and 
Japanese ceramics, furniture, and 
works from the main European 
schools of painting. The exhibition 
features 40 paintings and pastels 
by Mary Cassatt. Courbet, Degas 
and Monet among others. 

Mark di Suvero. To Nov. 1 5: Nine 
large sculptures by the American 
artist have been installed on vari- 
ous locations, including the 
Esplanade des Invafides. near the 
Bibliotheque de France and behind 
the Ecole MHrtaire. Dl Suvero's 
pieces are constructed, with the 
help of cranes and winches, with 
large iron girders that are welded, 
bolted and bent 

■ GERMANY 

COLOGNE 

Wallref-Richartz-Museum, tel: 
(221 ) 221 -23-82, dosed Mondays. 
Continuing/To Nov. 30: “Pointil- 



Iberian vase (50 B.C) at the Grand Palais in Paris. 


Ilsmus: Auf den Spuren von 
Georges Seurat” Documents the 
19th-century style of painting with 
more than 150 works by Seurat 
Pissarro and Signac. 

Miunrii 

Haus der Kunst tel: (89) 211-270. 
open dally. To Jan. 1 8: "Ellsworth 
Ketty." A retrospective of 50 paint- 
ings and sculptures, from 1949 to 
the present. Kelly's large-scale ab- 
stract paintings usually derive from 
the carefully observed play of 
shadow, the shape of a doorway or 
the pattern of bars on a window. 
KunsthaHe der Hypo-Ku Iturstrf- 
tung, tel: (89) 22-44-12. open 
daily. Continuing/ To Jan. 11: “Co- 
bra." Documents the work of the 
international art group, 1 948-1951 , 
whose members tried to revive Ex- 
pressionism. 

■ ISRAEL 


Israel Museum, tel: (2) 6708-811, 
open daily. To Jan. 31: "Propa- 
ganda and Vision: Soviet and Is- 
raeli Art, 1930-1955." Works cre- 
ated under Stalin, on loan from the 
State Russian Museum in SL 
Petersburg, are oonstrasted with 
iGraeG works of the same period. 

■ ITAIT — 

Padua 

Oratorio tfi S. Rocco, tel: (49) 
875-3981, dosed Mondays. To 
Nov. 30: “James Ensor." A selec- 
tion of engravings by the Belgian 
artist (1860-1949) that illustrate 
the following themes: self-por- 
traits, friends and family, religious 
scenes, marines, landscapes and 
still Ufes. 

Florence 

Palazzo Pltti, tel: (55) 213440, 
dosed Mondays. Continuing/ To 
Jan. 6: "The Magnificence of the 


Metfid Court." Art in Florence in 
the late 16lh century. 

■ S PA 1 N 

Valencia 

IV AM Centre Julio Gonzalez, tel: 
(6) 386-3000, dosed Mondays. To 
Jan. 4: “El Objeto SurreaBsta." Ap- 
proximately 90 objects created by 
artists such as Arp, Belimer, 
Brauner. Breton, Duchamp, Gia- 
cometti, Man Ray and Tanguy, 
among others. The promotion of 
daily objects to the status of art 
objects first happened in 1 91 4 with 
Duchamp's “BotHe-Rack." 

| "“ IPIN 

Stockholm 

Nationalmuseum, tel: (8) 666- 
4250, dosed Mondays. To June 
11 : “Cezanne in Focus." This small 
exhibition brings together 40 paint- 
ings and drawings by the French 
painter (1839-1906) and concen- 
trates on the four motifs that Ce- 
zanne continually returned to: por- 
traits. landscapes, still Ufes and 
bathers. Also features Swedish 
paintings showing Cezanne's in- 
fluence. 

M switz erVa m'p 

Geneva 

Musee d’Art et d'Histofre, tel: 
(22) 311-1706, dosed Mondays. 
To April 26: “L'Esprit de I'lnde." 
Documents how Indian art and 
crafts bring together eastern and 
western shapes and techniques! 
The exhibition features textiles, 
miniatures, ceramics and ivory 
items. 

Rieheh/Basel 

Fonda tion Beyeier, tel: (61) 645- 
9700. The new museum, built by 
Renzo Piano, the architect of the 
Pompidou center in Paris, and in- 
augurated on Oct 18, brings to- 
gether Hildy and Ernst Beyelers 


collection of more than 150 mod- 
em paintings and sculptures. One 
of its features is the confrontation 
between Europeans and Americ- 
ans, with works by Bacon. Baselitz. 
Braque, Sam Francis, Klee, Miro, 
Stella and Mark Tobey, among oth- 
ers. The opening exhibition is 
“Jasper Johns: Works from the 
Artist's Collection." and runs until 
mid-February. 

1 UNITED STATES 
Baltwore 

Museum of Art tel: (410) 396- 
7100, dosed Mondays and Tues- 
days. To Jan. lS:“AGrand Design: 
The Art of the Victoria and Albert 
Museum." The items that are on 
loan from the V&A in London in- 
dude a Leonardo notebook, a 
lacquered Chinese throne a bust 
of the Buddha, and shoes by Vivi- 
enne Westwood, as well as paint- 
ings by Boucher and Constable. 
The exhibition will Iravef to several 
American cities before returning to 
London. 

Chicago 

Art Institute, tel: (312) 443-3600. 
open daily. To Jan. 4: "Renoir's 
Portraits: impresdons of an Age." 
Portraits created by the French im- 
pressionist (1841-1919) that span 
hus career, with Its evolving styles 
and techniques. The paintings 
capture the ambiance ot the late 
19th century as well as the intim- 
acy of the painter's drde of family 
and friends. 

New York 

Metropolitan Museum of Art, tel: 
(1) 212-570-3791. dosed Mon- 
days. To Jan. 25: “John La Fargein 
The Metropolitan Museum of Art.” 
Paintings, drawings, watercotors, 
prints and stained glass windows 
by the American artist (1835- 
1910). Also, to Feb. 8: "Jackson 
Pollock: Sketchbooks and Draw- 
ings.” Pollock (1912-1956) >s one 
of the best known of the American 
Expressionist painters. The exhib- 
ition features three early sketch- 
books, ranging from the mid- 1 930s 
to 1940 as well as a selection of 
drawings. 

Museum of Modern Art, tef : (21 2) 
708-9400. closed Wednesdays. 
Jan. 4: "Egon Schiele: The Leo- 
pold Collection, Vienna.” Approx- 
imately 1 50 of the Austrian Expres- 
sionist's oils, gouaches, drawings 
and watercoiors created between 
1905 and 1918, the year of his 
death at age 28. Schiele's por- 
traits. allegorical compositions and 
landscapes are a reflection of Vi- 
enna's intellectual and psychoana- 
lytic thought 

CLOSING SOON 

Oct. 26: "The Pursuit of Beauty: 
Five Centuries of Body Adornment 
!n Britain." National Portrait Gal- 
lery, London. 

OcL 26: "A Collecting Odyssey: 
Indian, Himalayan, and Southeast 
Asian Art from the James and Mar- 
ilyrm Alsdorf Collection. " Art In- 
stitute, Chicago. 

OcL 30; "Chagall et I’Ecole de Par- 
is." Petit Palais, Geneva. 

OcL 31 : “Un Regard American sur 
Paris." Musee d'Art Amerfcain, 
Givemy. 

Oct. 31: “The Franks: Precursors 
oi Europe." Kufturfonim, Tier- 
gaften, Berlin. 


Hats Off to Soulful Lee Konitz 


• in KONITZ “DiG DuG DoG” (Columbia): Hals off to 
•‘Subconscious Lee” (the name of an early album), who 
turned 70 last week. The name fits. He wears a soulful shroud. 

Remindful of Stan Gee. Chet Baker and Paul Desmond, oil 
deceased, he is perhaps the only original white sound re- 
maining from the formative years. Komtz came out .of Lenme 
Tristano. Claude Thornhill and Miles Davis .< Birth of the 
Cool”) in the ’40s, and Stan Kenton in the '50s. Recently, he s 
been mostly under his own flag, mostly abroad, often with 
locals, sometimes in duo and even solo. This album was 
recorded live in Tokyo with the French pianist Laurent de 
Wilde and the puny Japanese singer Keiko Lee.' 

• diana krall “Love Scenes (Impulse!). Cali her 
“post-Sinatra,” Krall ’s pronunciation, intonation, material . 
and her programmed growl all add up. And then there s the , 
sassy swing of clean accompaniment (Russell Malone, guitar, 

Christian McBride, bass) without undue intellectual dem^ids. 

If Sinatra was young at heart today, he’d resemble this. Check 
out “All or Nothing At All,” , „ ,, , - , 

• jaco PA5TORIU5 “Raca” (Big World): Volume 5 of 

the series “Live In New York” proves that Pasterns was not 
yet bonkers when he called himself “the best elec tnc bass 
player in the world.” Only he used to omit “electric. Jaco, 
bless him. always went too far. • — - ; . 

■ Mike Zwerin/IHT nci- llh,m is ~DiG. DuG, DoG.' 

- — — tr~ 



ninkM l„ 


BOOKS 


HEMINGWAY AND HIS 
CONSPIRATORS: Hollywood, 
Scribners and the Making of 
American Celebrity Culture 

By Leonard J. Leff. 255 pages. $29.95. 
Raw-man & Littlefield. 

Reviewed by Carolyn See 

L EONARD Leff takes as his subject 
Ernest Hemingway from 1923 to 
1933. He looks at the still-young au- 
thor’s publications during that decade: 
“In Our Time’ ' t those first, perfect short 
stories): “The Torrents of Spring”; 
"The Sun Also Rises"; "Men Without 
Women"; “A Farewell to Arras”; 
‘‘Death in the Afternoon" and “Winner 
Take Nothing." 

Leff s thesis is that the authentic Hem- 
ingway — the testy, morose, madly tal- 
ented young writer — was co-opted, 
corrupted and destroyed by a burgeoning 
American celebrity culture that chipped 
away at his sense of self, catering to his 
shameful longings for attention and 
fame. By the end of his first 10 years as a 
published writer, there were two per- 
stmae to be reckoned with: the “author," 
who did the work, and the "Author,” 
who had studio portraits taken of himself 
fur publicity, wlio gave interviews to 
journalists on steamships, who had more 
pictures of himself taken next to marlin 
that he'd caught and bulLs he was chum- 
my with and so on. The gadabout 
celebrity ended up killing off the au- 
thentic writer. Left contends, and he goes 
so far as to suggest that this personality 
split was the prime reason for Hem- 
ingway’s suicide in 1961. 

So much has been written about Hem- 
ingway that the reader's first impulse 
here is to balk at reading more. Don’t we 
already know that too much celebrity 


e older Hemingway a jerk? Isn’t 
a clichd, out of style and so 


made the 
he passe, 
on? 

Except this turns out to be an ab- 
solutely fascinating book, especially if 
you're interested in publishing, or ever 
wanted to write, or find yourself cur- 
rently in that notoriously tortured pro- 
fession. The narrative is full of infor- 
mation about pitiful print runs and lying 
editors and desperately bumbling ploys 
to sell books and the layers and layers of 
artifacts that surround the whole thorny, 
nutty conundrum that has to do with 
“selling out,” whatever that is, and los- 
ing your “integrity,” whatever that is. 

We think of Fitzgerald as an essen- 
tially jazz-age author, writing, as he did, 
in the ’20s, but so did Hemingway, com- 
ing into the business when the American 
public had money to spend and enough 
education to want to buy books. Lit- 
erature was slipping away from the grip 
of the happy few. Publishers Weekly, the 
industry’s trade magazine, was advised 
by the movie industry that bookstores 
should become "cultural and recreation- 
al trade marts,” and that the book in- 
dustry should lay aside its traditional 
dignity. It did. partly, and that led to ihe 
contemporary split between the fiercely 
exclusive intellectual way of looking at 
literature, and all the other ways, as 
people who came down from the moun- 
tain of an promptly got lost on the great 
plains of celebrity, ethnicity’, postmod- 
ernism and directionless glitz. 

At Scribners, the legendary Max Per- 
kins pushed Fitzgerald os 'a jazz-age 
writer and sold Hemingway by way of 
“the masculine idea." Well’ P&xkins had 
to do something, and it worked during the 
*20s. But human beings don't do very 
well at being bought and sold. Actors 
choose that way of life, but authors — 
often — have fragile brains. You can 


catch a 600-pound marlin or fight a genu- 
ine bull, but that doesn't mean you can 
withstand reading news releases about 
yourself doing those things. 

Hemingway got tweaked by the sys- 
tem. By 1933. the author suggests, it was 
pretty much over for him as an anisi. He 
had been buffeted and splintered and 
hardly knew who he was. There are other 
ways to look at it, of course — it wasn't 
publicity and celebrity that tore at hint 
but money-and-marriage concerns, too 
many wives and kids, and that mother of 
his, all of whom he had to support. Or it 
was the war. Or it was his father’s clin- 
ical depression. 

But the subtext here is even more sad 
and frightening. Maybe it wasn't the 
celebrity culture but the demands of 
being a writer that wrecked Heming- 
way’s talent and peace of mind. The 
details of the business, as it drove him to 
baffled rage and helpless irrationality, 
are absolutely frightening. 

T HOSE print runs, the advertising or 
its lack, the worry about publishing 
short stories in low -prestige slick 
magazines that paid or high-prestige 
quarterlies that didn’t, (he competition 
with other writers, the bitchy, persnick- 
ety reviews, the weaselly half-truths that 
float over the whole enterprise — all or 
this tortured Hemingway. He was a 
swaggering, bumptious, misogynistic 
anti-Semite, as these pages amply show. 
But he was also a writer absolutely ded- 
icated to telling his own truth and he 
went tlirough hell to do iL 
The ’30s came, and the bottom fell 
out. The book market went kablooey. In 
1933 ■■WirmcrTake Nothing” came out 
with a print run of 20.300. There was no 
second edition. So much for celebrity 
and its dubious rewards. 

(lUi/iifiK/ui Post Smite 


BRIDGE 


By Alan Truscott 

T WO world champion- 
ships, the Bermuda Bowl 
for Open Teams and the 
Venice Cup for Women’s 
Teams, begin this weekend in 
Hammamet. Tunisia. 

In last year's world cham- 
pionship, played on Rhodes, 
France captured the Olympi- 
ad Open Teams title. Those 
semifinals produced two ex- 
citing matches. 

France began the hst_ ses- 
sion trailing by -I imps 
against Taiwan, but then 
surged to a 19-imp victory, 
thanks in considerable pan to 
the diagramed deal 
Christian Mari, the French 
South, found himself in five 
diamonds doubled after re- 
moving his partner's negative 


double of four hearts. His four 
no-trump bid asked his part- 
ner to select a minor suit. If 
West had led his singleton 
le he could have defeated 
contract by force, since 
the hean jack in the East hand 
can be an entry to supply a 
spade ruff. 

But West led the heart ace, 
cutting a vital line of com- 
munication for the defense. 
He shifted to his spade, but it 
was too late. South won with 
the king and led the diamond 
ten. He guessed right by fin- 
essing when West played 
low, another diamond forced 
the ace. West led a second 
high heart, and South ruffed 
and drew die missing trump. 

Now Mari did not need the 
club finesse. Since the length 
in both black suits, was sure to 
be on his right, he cashed his 


top dubs and played all his 
remaining trumps to squeeze 
East. In this way he would 
have made his doubled game 
if West had held a doubleton 
club queen. 

In the replay, the bidding 
began the same way, but the 
double of four hearts had a 
more punitive flavor. South 
passed, and again the result 
hinged on the opening lead. 

A tramp lead, with another 
trump to follow, would have 
succeeded since West cannot 
maneuver two diamond ruffs. 
A club lead with a quick 
trump shift will also allow the 
defense to prevail. But North 
led a diamond, and West 
gratefully won, ruffed a dia- 
mond and drew trumps to 
make his contract 

The French thus scored a 
doubled game in each room. 


But different leads could have 
defeated hath contracts, and 
caused the French to lose 5 
imps. And eventually the 
match by 1 imp. 

NORTH (D) 
4AQS64 
v!8 
* K 64 
4 J 10 7 


WEST 

*S 

T A KQ 10 9 5 1 
*> A Q 3 
♦ 98 


EAST 

♦ J 10 9 5 3 

n- 8 

♦ Q 5 3 2 

SOUTH 
♦ K7 


• J 10 9 75 2 

♦ A K 6 4 

. Nf ither “** *as vulnerable The 
bidding. 


North 

East 

South 

West 

Pass 

Pass 

I •: 

4 <7 

ObL 

Pass 

4 N,T. 

Pass 

5 G 

Pass 

Pass 

DbL 

Pass 

Pass 

Pass 


West ted the bean act: 




/%. \ 



u n new ease 
Jo:w or overtaking 
v : c-water degree of 
_ .vr. croMed pulling power 
thi'c.igh bends. ; ’ 

This ability to call on the 
power you need tveH at* 
the most critical moments 
is another satisfying 
demons tret ion of our r.irn. 


Some of our vehicles have 
even more impressive torque. 
You’ll find them at 35,000 feet. 



A wide variety of weekly features 


MONDAY 


♦ Monda’ 

Full weekend results of all major 
international sporting events. 

♦ Capital Markets: 

Carl Gewirtz. Europe's most respect- 
ed Euro-market analyst, forecasts 
developments in the foreign exchange 
markets. 


Up-to-date developments on Internet 
and network communications. 

TUESDAY 

♦ Style: 

Suzy Menkes reports on the world of 
fashion, lifestyle issues and creative 
design. 

♦ International Stock Markets: 

An analysis of global investment 
strategics. 

♦ TmnkiiM; Ahead: 

Reginald Dale sets the world’s eco- 
nomic agenda. 


WEDNESDAY 

♦ Stage/ Entertainment; 

London and New York theater, opera, 
concerts, pop music, jazz, along with 
book and movie reviews, this section 
details entertainment options all over 
the world. 

♦ Media Markets: 

Global developments in marketing, 
advertising and media. ^ 

THURSDAY 

♦ Health/Science: 

From technology to space exploration, 
from recent medical discoveries to 
how the human brain functions, this 
page provides up-to-date information 
on new scientific developments. 

♦ International Manager; 

Creative solutions to crops-hurder 
management challenges. 


FRIDAY 


♦Leisure: 

Travel deals, art inhibits, restaurant 
reviews, movie guides and more. X 
weekly guide to \nur leisure lime, 
regardless 0 r where in the world von 
may be traveUinw. 

♦ Wall Street' waldc 
Analysis of developments in the A 
Arncncaii market from a sophistic;} l- H 
ed international, perspective. 

SATURDAY 

♦ Art: 

Souren AHikion k world-renowned 

coverage of the world's art market- 
place. 

♦ Economic. Scene: 

An overview 0 r forces reshaping , he 
World eetiuntny r ^ 

♦Tlie Moncv Report: 

Fonndkidual inv. ?lu „ *!.,«• ial.-r- 

wtwid !»■},. n,l thi'ir nalional or 
N-gtona! economies. 



» IBB.1 ms n*L Humutn, i _ 

THE WORLD'S PAID' NEWSPAPER 


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PAGE 13 


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INTERNATIONAL 


UN Rebuffs U.S. on New Iraqi Curbs 






UNITED N A IONS, New YnHr 
The United Sta s has lost its battle to 

S^r VSan 10nson r «q«nd^med 

M? CCUnly . uunciJ resolution that 

^c&. 0nllS,rOngthra '°f^ 

. 5 _ Opposed by fcnee. Russia. China 
>***•. ESl-P' and Ken; ihe United StateslS 
■ - Britain had to raw back both from a 

. .. plan to impost an immediate interna- 
uooal travel ba/on senior Iraqi military 
and intelligent officials and from an 
alternative pro >sal to put the ban into 
• effect aatomati illy in six months if haa 
continued to o itruct efforts to destroy 
its major weap 'is systems. 

Instead, a ty of negotiating Wed- 
nesday amondSecurity Council mem- 
bers producedjresolution that expresses 
the Security Omcil's “firm intention” 
to order the tfvel ban in April if Iraq 
does not meelts obligations. 

The resolufm also condemns Iraq for 






harring access to weapons sites, endan- 
gering the lives of inspectors and re- 
inoving or destroying documents. 

Jie resolution calls fora list of Iraqi 
officials who would be subject to a travel 
™ be drawn up in the interim. 

Bill Richardson, the U.S. represen- 
tative, said he was satisfied with the 
resolution because it had broad suppoxt 
Nine council members sponsored the 
measure. 

More than six years after the Gulf 
War, UN inspectors have yet to certify 
that Iraq has no more weapons of ma.« 
destruction cm- the factories and labo- 
ratories to build them. 

The delay has been caused by Iraq's 
lack of cooperation. 

Inspectors have been told so many 
conflicting and false stories over the 
years that Iraq's credibility is now ex- 
ceedingly low. 

The country has been under a crip- 
pling economic embargo since its in- 
vasion of Kuwait in August 1990. 

The United Stales and Britain, which 


have held die line against all efforts to 
weaken those sanctions, decided to try to 
impose the additional measures after 
Iraqi officials blocked arms inspections 
earner this year and interfered with air- 
craft, putting inspectors at risk. 

The Security Council decided in June 
to agree to the travel ban but to postpone 
putting it into effect until the fail. In 
September the Iraqis again interfered 
with inspections, while submitting a re- 
port declaring that all prohibited 
weapons had been destroyed 

Richard Butler, the chief monitor of 
the Iraqi aims program, concluded that 
the report was not credible. 

Failing to have sanctions imposed 
now, the Clinton administration hoped to 
have them applied automatically in April, 
when Mr. Butler's next major report is 
due, unless Iraq had made substantial 
progress in accounting for its anus. 

France and Russia said that this put 
too much responsibility on Mr. Butler 
and left too little room for the Security 
Council to debate the issue. 




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Bill Richardson, the U.S. representative at the UN, discussing the 
Security Council's refusal to impose new sanctions on Iraq immediately. 


After Libya, Mandela Ponders 
A Trip to Cuba, Possibly in ? 98 


CvaptitO by Oar SufiFnm /taporter 

PRETORIA — President Nelson 
Mandela may follow his controversial 
visit to Libya with a tour of Cuba despite 
expected U.S. outrage. South African 
sources said Thursday. 

“It would be logical that if the visit 
were to go ahead it would be before 
Mandela steps down as president” in 
1999. a diplomat said, adding that time 
for a trip by the South African leader 
would not be available before February. 

A presidential spokesman. Parks 
MankahJana, said Mr. Mandela had 
“many friends” to visit and had not 
made plans to visit Cuba soon. 

If the United States were to oppose 
such a visit, “that would be their prob- 
lem.*' be added. 

In comments directed at the United 
States for questioning his visit to Libya, 
which is under partial United Nations 
sanctions because of associations with 
terrorism, Mr. Mandela said. “No coun- 
try can dictate to the others what should 


be done. Those who object to my visiting 
Libya have no morals, and I will not join 
them because I have morals,” he said in 
the Libyan capital, Tripoli, on Wed- 
nesday soon after arriving on a two-day 
visit, the Hayat newspaper reported. 

“A politician must not lose his morals 
and should be ready for suffering, and 
this is the reason that made me remain 27 
years in prison,” he said, referring to his 
imprisonment by South Africa’s 
apartheid government until 1990. 

The spokesman for South Africa’s 
Foreign Ministry. Marco Boni, con- 
finned that Cuban authorities had in- 
vited Mr. Mandela to visit but said no 
decision had been made. Mr. Boni said 
South Africa had not sent a diplomatic 
advance party to Cuba, an action that 
usually precedes any slate visit by Mr. 
Mandela by about four months. 

The president concluded talks with 
Colonel Moammar Gadhafi, the Libyan 
leader, on Thursday and then went to 
Tunisia. (AFP, AP) 


Moi Curbs Police Disruption of His Rivals 


The Associated Press 

NAIROBI — President Daniel arap 
Moi has ordered the police to stop dis- 
rupting peaceful opposition rallies, the 
governing party’s newspaper reported 
Thursday. 

“Democracy can only thrive in an 
atmosphere where everyone had a 
chance to air their views,” Mr. Moi told 
supporters of his Kenya African Na- 
tional Union party Wednesday, the 
Kenya Times said. 

His order to the police and local of- 
ficials came the same day the U.S. State 
Department deplored the continuing re- 
fusal of his government to permit 
Kenyans to assemble freely. 

Since May, the police have routinely 
used violence to break up meetings or- 
ganized by opposition parties and other 
groups calling for democratic reforms 
before elections this year. 


More than a dozen people were killed 
in police crackdowns in July and Au- 
gust On Sunday and Monday, the police 
used tear gas and clubs to disperse two 
opposition meetings north of Nairobi 

In Washington, the State Department 
spokesman, James Rubin, said the de- 
cisions to break up the weekend rallies 
had “run counter to the very democratic 
reforms the government has recently 
embraced.” 

Mr. Moi gave no explanation for his 
new order to the police, but aid-donor 
nations have pressed the government to 
refrain from die use of force, to register 
all political parties and to permit all of 
Kenya ’s21 registered political parties to 
campaign freely. 

Mr. Moi, 74, has been president for 1 9 
years and is seeking a fifth five-year 
teim. Elections have not been scheduled 
yet, but they must be held by year-end. 


Palestinians Fault 
U. S. Peace Envoy 

GAZA — Contradicting upbeat 
assessments by Israel and the 
United States, the Palestinians said 
the latest peace initiative by the U.S. 
Mideast envoy, Dennis Ross, had 
produced no results. _ 

“No progress has been achieved 
during this round of talks with the 
Israelis,” Information Minister 
Yasser Abed Rabbo said after a 
cabinel meeting Wednesday night. 

“Wc feel that Ross was more 
interested in saving Ihe Doha eco- 
nomic conference than in saving the 
peace process,’ ’ he said, referring to 
the upcoming Mideast economic 
conference in Qatar. (AP ) 

Tutu's Panel Issues 
Reparations Plan 

CAPE TOWN — Some victims 
of human rights abuses during 
apartheid would get at least 17.000 
rand a year for six years under a 
repartitions plan proposed Thursday 
by Ihe Truth and Reconciliation 
Commission. 

That is the equivalent of S3. WO a 
year. But the panel, which is in- 
vestigating political crimes during 
more than'three decades of apartheid 
rule, said no amount of money could 
make up for the evils or the past. 

“None of us labor under any il- 
lusions,” said the chairman of the 
commission. Archbishop Desmond 
Tutu. “You cannot put a monetary 
value to a person’s suffering.” 

The commission expects about 

22.000 people to qualify for the 

payments. (AP) 

20.000 Brazilians 
Flee Heavy Floods 

BRASILIA — At least 20.000 
people have been left homeless by 
heavy flooding that devastated 
towns and cities in southern Brazil, 
the authorities said. 

Civil Defense officials said the 
situation was worst in the state of 
Rio Grande do Sul. where the Uru- 
guay River broke its hanks and 
flooded the homes of about 15,000 
people. 

In neighboring Santa Catarina 
state, at least 590 families were 
evacuated, while in Parana 8,000 
people had to be rescued. (Reuters) 

Is Mars Rover Lost? 

LOS ANGELES — With tem- 
peratures on the red planet dipping to 
58 degrees below zero Fahrenheit 
(minus 50 centigrade), the Mars 
Pathfinder radio transmitter probably 
cannot operate properly, according to 
scientists who are trying to regain 
communication with the spacecraft. 

The lander has not been heard 
from since Oct. 7. 

“It’s possible it’s driving around 
and keeps calling home and there's 
no answer,” said Brian Muirheadof 
the Jet Propulsion Laboratory in 
Pasadena, California. (API 


Victor Returns to Brazzaville and Appeals for Aid 


The Associated Press 

BRAZZAVILLE, Republic of Congo 
— General Denis Sassou-Nguesso. the 
victor in the country’s four-month civil 
war, returned Thursday to the capital 
that his troops helped destroy and asked 
the world’s help in rebuilding tL 
In a refrain beard often in this region, 
where armed force has driven three lead- 
ers from power in the past five months. 
General Sassou-Nguesso said it was up 
to the people of the Republic of Congo 
and the international community to join 
in restoring the country to normalcy. 

“We fought the enemy and we have 
won,” he said. “The criminals fled. 
Now we have to get Brazzaville back on 
its feet.” 

“Congo must become what it used to 


be,” General Sassou-Nguesso told thou- 
sands of supporters after arriving in the 
rain-soaked city in a 60-car convoy of 
new Mercedes-Benzes and other 
vehicles seized from his predecessor's 
government 

The genera], who first led the country 
as a military dictator from 1979 to 1991 , 
spoke from the damaged remains of his 
residence in Brazzaville, where his war 
with President Pascal Lissouba broke 
out on June 5. 

Fighting started when Mr. Lissouba, 
who defeated General Sassou-Nguesso 
in the country’s first multiparty election 
in 1992, tried to disarm the general's 
private militia before presidential elec- 
tions that bad been planned for July. Both 
men were to have been candidates. 


Mr. Lissouba has gone into exile in 
Burkina Faso but has yet to concede 
military defeat. 

Angolan forces, trying to counter Mr. 
Lissouba's support for Angolan rebel 
groups, played a major role in the gen- 
eral’s military victory and have been 
seen in Brazzaville and the county's 
second-largest city, Poinie Noire, since 
die members of the general's Cobra mi- 
litia seized the two cities last week. 

General Sassou-Ngucsso’s return to 
Brazzaville was relatively low-key, a 
sign of his aides' security concerns. 
There was no parade. He is to be in- 
augurated president Saturday at the par- 
liamentary palace, where Red Cross 
workers this week were clearing away 
corpses in preparation for the event. 


GREENHOUSE : Allies Scorn US. Plan 



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GJVno Yurie Times/ Edited by Will Shorts. 


Continued from Page 1 

With prices about a fourth that level in 
the United States, the global warming 
controversy has convinced many for- 
eigners that Americans are not just 
wasteful gas guzzlers but also a menace 
to the rest of the earth. 

Administration officials sought to 
j portray die Clinton plan as a balanced 
! formula to accommodate the anxieties of 
industiy and environmentalists alike. 

But the governments in Europe. Japan 
and the developing world say the plan is 
woefully inadequate for a nation that 
represents 4 percent of the world's pop- 
ulation and produces 25 percent of the 
carbon dioxide and other gases that ul- 
timately may provoke a disastrous rise in 
the earth’s temperature. 

Greathouse gases come mostly from 
burning fossil fuels that serve as primary 
energy sources, such as coal ana oil. 

The gases emulate a greenhouse ef- 
fect by trapping the earth's heat in the 
atmosphere and raising temperatures. 

Scientists say this wanning effect will 
elevate sea levels by melting polar ice 
caps and cause drastic shifts in weather 
patterns, provoking floods in some areas 
and drought in others. 

President Clinton’s plan was unveiled 
as delegates from 150 nations gathered 
in Boon trying to narrow differences on a 
global warming treaty ahead of the final 
round of negotiations in Kyoto. 

The talks in Bonn will focus on two 


primary goals: where to set targets for 
industrialized nations in curbing green- 
house gases and how to find a formula 
that would encourage developing coun- 
tries to reduce emissions of their own 
over the next two decades. 

Developing nations, led by China, 
Brazil and India, object to any restric- 
tions on their emissions because they 
argue these measures will hinder their 
economic growth. 

They insist that developed nations 
should bear the brunt of any sacrifice 
because their industrial economies have 
largely spawned the global wanning 
threat through the rampant burning of 
fossil fuels. 

Europe and Japan have accepted that 
argument's premise and proposed bind- 
ing reductions below 1 990 levels that are 
more ambitious than the goals of ihe 
Clinton administration. 

The 15 European Union nations have 
embraced a goal of reducing emissions 
by 15 percent below 1990 levels by the 
year 2010, while Japan is proposing a 5 
percent cut by the year 2012. 

Four years ago, Mr. Clinton vowed to 
return to 1990 levels by the end of the 
decade. But administration officials say 
be was forced to break his promise be- 
cause an unexpected boom in the U.S. 
economy has accelerated pollution. 

At cun-ent growth rates, greenhouse 
gases will rise 13 percent above 1990 
levels by the end of the decade. They 
rose 3.4 percent in the past year alone. 


Junichi Ueno, Dies; 
Newspaper Scion 

Nevr York Times Service 

TOKYO — Junichi Ueno, 87, co-own- 
er of Japan’s second-largest daily news- 
paper, the Asahi Shim bun, died of pneu- 
monia at a Tokyo hospital on Oct 19. 

Mr. Ueno represented the third gen- 
eration of the family that, with Michiko 
Murayama, owns the newspaper and its 
subsidiary businesses, which include 
television and satellite broadcasting. 

He joined the newspaper in 1937 after 
graduating from Kyoto University with 
a degree in economics and held several 
different posts, including serving as a 
member of the executive board during 
World War EL After Japan’s defeat in 
1945, he resigned along with several 
other executives who took responsibility 
for one-sided reporting during the war. 

He then briefly worked as an ele- 
mentary school teacher and later took a 
position at the Kobe University of Com- 
merce. After that, he served as secretary 
to Kotaro Tanaka, who was then chief 
justice of the Supreme Court of Japan. 

But in 1952, Mr. Ueno returned to Ihe 
Asahi as the bead of its newly established 
employee training center. He inherited his 
family s portion of the media company’s 
ownership in 1970 when his lather died, 
and was a board member until 1 994. 

Ueno was also known for his 
support of the Ueno Memorial Foun- 
dation, a research institution devoted to 
studying Buddhist art and culture. 


rrtfntrars* l* o. e: 






PAGE 14 


Thursdays 4 P.M. Close 

The WOO most fradaf stocks of the day. 
MofiomiHe prices not reftaSng fate trades elsewhere. 

The Assaoated Press. 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


NYSE 

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BUSINESS/FINANCE 


Oirr prrtf r jit ricWv rf sutuYv l-:.'/* ;i/r 
certificates to make tbeir stay a «ptvr*if 
experience. 

s» 

.AMHl MKW ■ . .. ■ «92-2i’JJ-.mi 


FRIDAY, OCTOBER 24, 1997 


PAGE 15 


Dunlap Puts Sunbean i on Market 

Despite Strong Sales, He Says He’ll Consider Any Offer 


G«*r*W by tta- Sqf FirwCta^teirtr, 

DELRAY BEACH, Florida — A 
j«ar into his makeover of Sunbeam 
Coip, , chairman A] Dunlap effectively 
put tihe home-appliance maker up for 
sale Thursday. 

Sunbeam hired an investment 
hankw and Mr. Dunlap said he would 
consider * any and all types of trans- 
actions. 

Mr. Dunlap, who earned the nick- 
name Chainsaw AT* by making deep 
cuts at other companies, put Sunbeam 
m play a day after issuing a quarterly 
report reflecting strong sales boosted 
by new products and distribution 
lines. 

He announced that Sunbeam had 
retained Morgan Stanley & Co. to ad- 
vise the company on its options. 

“I have always been a strong pro- 
ponent of maximizing share hold e r 
value at Sunbeam as well as at the 
other companies which I have 
headed,” Mr. Dunlap said. 

‘We are doing what any s imil arly 
situated company should do, which is 
to explore all alternatives,” including 
acquisitions, mergers or sale. 

.. In late dealings on the New York 
Stock Exchange, Sunbeam gained 
8716 cents a share to $49.25 despite a 
sharp drop in the overall market. 


A sale or breakup had been an- 
ticipated almost from the day Mr. 
Dunlap walked in the door 15 months 
ago. 

He slashed half of the company's 
12,000 jobs nearly a year ago and 
unloaded 87 percent of a 5.000-irem 
product lineup to focus on the Sun- 
beam and Osier lines. 

Just before landing at Sunbeam, Mr. 
Dunlap turned the stodgy, underval- 
ued Scott Paper Co. into a profitable 
plum that was swallowed by the com- 
peting Kimberly-Clark Coip. 

‘Chainsaw AT is famous 
for making deep cots in 
companies. 

He did the same earlier at Lily-Tulip 
Inc., apaper-cup maker that went on to 
merge with Fort Howard Paper Co., 
and at Consolidated Press Holdings 
Ltd./ an Australian television and 
magazine empire. 

In the third quarter. Sunbeam said 
Wednesday it earned $34.5 million, or 
39 cents a share, in contrast to a loss of 
$18.1 million, or 22 cents a share, in 
die same quarter a year ago. 


Revenue was up 25 percent, to $289 
million from $232 millio n. 

- For the first nine months, profits 
climbed to $67.7 million, or 77 cents a 
share, from $63 million, or 8 cents a 
share, a year earlier. Sales rose 16 
percent to $830 milli on from $715 
mininn. 

Analysts said they considered a sale 
of Sunbeam unlikely. 

Sunbeam’s stock price, which has 
quadrupled in 15 months, gives Dun- 
lap the currency to make acquisitions 
that would bolster earnings. 

1 ‘The conversation around the stock 
has moved from, ‘When is Sunbeam 
bought?* to ‘Who do these guys 
buy?’ ” said Justin Maurer, an analyst 
at McDonald & Co. Investments. 

Mr. Dunlap said the company also 
retained Llama Co. and its president, 
Alice Walton, daughter of the Wal- 
Mart Stores Inc. founder, Sam Walton, 
as an adviser to Morgan Stanley. 

Mr. Dunlap’s restructuring was 
aimed at turning the Sunbeam oper- 
ation from an unprofitable hodge- 
podge of household goods such as 
thermometers, furniture and toasters 
into a leaner company focused on a 
few more certain, highly profitable 
areas. (AP, Bloomberg) 



Traders at the Paris Bourse watching screens Thursday as French stock prices slumped, losing 3.42 percent. 

Hong Kong Drop Chills Europe 

Frankfurt Shares Fall 4.66 % With Other Bourses Close Behind 


WALL STREET WATCH 


Behind the Scenes on Analyst’s Stance 


By Edward Wyatt 

1 New fort Tunes Service 

NEW YORK — In the three years 


since he left Fidelity Investments, Dav- 
id O’Leary of Alpha Equity Research 
has made himself the mutual fund gi- 


ant’s most strident critic. 

From an office in Portsmouth, New 
Hampshire, Mr. O'Leary issues daily 
critiques on the performance of Fidelity 
funds and their managers. The tone of 
his observations, issued via fax, is often 
far from subtle; earlier this year, when 
Fidelity was suffering from poor in- 
vestment returns and the defection of 
managers, Mr. O’Leary called Fidelity 
“the Drexel Burnham of the 1990s.” 

So it stood out noticeably when Mr. 
O'Leary suddenly softened his manner in 
July, noting that Fidelity, a unit of the 
FMR Coip., had “clearly improved" and 
“may begin to outperform the market’ ’ 

Mr. O’Leary did not disclose, 
however, that as he was publicly prais- 
ing Fidelity he was also privately ne- 
gotiating with it for permission to sell 
his research and investment recommen- 
dations to customers of Fidelity’s dis- 
count brokerage firm. 

When Fidelity turned down Mr. 
O'Leary ’ s proposal this month, he again 
sharpened his blades. In a letter sent last 
Aveek tb Robert Hussey, a vice president 
i in Fidelity’s retail brokerage group, he 
said hie would seek to seU his research to 
customers of Charles Schwab, Jack 


White, Quick & Reilly and other dis- 
count brokers. That research “may be 
mote valuable to use in competition 
with you,” he added. 

Fidelity said that it had decided not to 
distribute Mr. O’Leary’s research be- 
cause it saw no benefit for its clients in 
doing so. “We already offer a suite of 
research products to our customers,” 
Robyn Tice, a spokeswoman for Fidel- 
ity, said. “This didn’t fit into the model 
of what our customers are asking for.” 

After the decision, Mr. O’Leary's re- 
search resumed its former tone. On 
Tuesday, he issued a release that asked 
rhetorically, ‘ ‘Why bother with actively 
managed Fidelity funds,” which, he 
said, are too big to outperform the index 
funds of another mutual fund giant, the 
Vanguard Group. 

Mr. O’Leary said in aq interview Wed- 
nesday that “there is more coincidence 
than correlation” in the concurrence of 
circumstances — but a little of both. 

“I’m a numbers guy , and last summer 
the performance improved significantly 
and they stopped losing people,” he 
said. “Butl’m a human being. I'm sure I 
reacted by being a litde softer because I 
was talking with part of the company.” 

Mr. O’Leary said he did not believe 
that he should have disclosed the ne- 
gotiations to the institutional investors 
— including, he says, 18 of the top 20 
mutual fund companies — that be says 
each pay $15,000 to $24,000 annually 
for his research. 


His situation serves as a reminder that 
finan cial analysts often face conflicts of 
interest However, many firms choose 
to disclose that one hand might be work- 
ing in opposition to the other. 

Eric Kobren publishes two newslet- 
ters that advise investors on which funds 
to buy or sell, including one that focuses 
exclusively on Fidelity funds; he also 
manages $1 billion in assets, much of 
which is invested in Fidelity funds. 

Mr. Kobren said that unlike recom- 
mendations of individual stocks, advice 
on fond investing presents fewer po- 
tential conflicts, because one recom- 
mendation rarely affects the value of a 
diversified fund. And regarding Fidelity, 
he said, “1 don’t go easy on them.” . 

In contrast, Mr. O’Leary contends that 
his recommendations about what stocks 
Fidelity fond managers are buying and 
selling allow investors to “front-nm the 
funds,” buying stocks while Fidelity is 
still building a position. And his easy 
availability and pointed comments have 
made Mr. O’Leary something of a 
darling with tire financial press. 

Mr. O’Leary’s sources within Fidel- 
ity have allowed him to forecast some 
major management shake-ups. But his 
analysis of fidelity fund portfolios has 
sometimes been wrong. In mid-June 
1996, he said that Robert Stansky, man- 

S?0 bifoomfobonds by the end of the 
month. The bulk of them were not sold 
until late last year. 


.i 

Telebras to Be Split Into 13 Companies 


! Bloomberg News 

BRASILIA —Brazil will split its tele- 
phone monopoly Tetecomumcacoes 
Brasileiras SA into 13 companies, the 
government said Thursday, paving the 
ujay for competition and asset salestfae 
tfjpvenimeni hopes will raise $30 bilb on. 
vr The government divided the com- 

g y, known as Telebras, into nine wire- 

units and three fixed-line operators. 
Each of the new companies will serve a 
geographic region. Telebras will also sell 
Empresa Brasileira de Telecomumca- 
coes SA, a wholly owned unit that carries 
international and long distance traffic. 

• “We have divided the companies to 
meet the development policies of the 
. government,” said Commum canons 
.'Minister Sergio Motta. “Oar aim is to 

reduce regional imbalances.” 

The reorganization is to Brazil what 


the 1984 breakup of American Tele- 
phone & Telegraph Co. was to the 
United States: a change that encouraged 
modernization by opening up the in- 
dustry to competition. Costs for long- 
distance calls m die United States have 
since fallen about 60 percent. 

The government of Brazil — where 
there are just 9 telephones per 100 in- 
habitants, compared with 55 per 100 in 
the United States — recognizes that the 
high costs and poor quality of existing 
telephone service is a serious imped- 
iment to economic growth. 

Mr. Motta said the bidding rules for 
selling the new telephone companies 
could be released by April Foreign in- 
vestors will be restricted to acquiring no 
more than 49 percent of each of the 
companies, he said. 

Manag ement for the new companies 


will be in place by Nov. 30. he said. 

Within three to five years, the new 
companies will be free to compete in 
any area of telecommunications, and 
regional boundaries will be lifted. 
Prices will still be regulated. 

The state of Sao Paulo and its local 
Telebras subsidiary, Telecomunicacoes 
de Sao Paulo SA, will form a company 
in Region 3. With five million fixed 
lines, it is considered the most prom- 
ising of the Telebras subsidiaries. 

The Region 1 company will include 
the subsidiaries in the states of Rio de 
Janeiro, Minas Gerais, Espirho Santo 
and in Brazil’s northern and northeast- 
ern regions. 

The third company, in Region 2, will 
be made up of Telebras operating units 
in Brasilia and states in the southern and 
central western regions of the country. 


CURRENCY & INTEREST RATES 


Cross Rates 


LibicKJbor Bates 


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Key Money Rates 

Unltad States Ctas* 

DbcBMtrata 500 

Prime rata BW 

Mvtaftmds St* 

90-dor CD) dealers 
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Gold 

a J6. pja. caw 

Bfiia NA. 32240 —060 

London 32370 32430 +105 

HmYock 32360 33470 +1.10 

_ US. dUkns, perounca.Ltmton 




By Tom Buerkle 

International Herald Tribune 

LONDON — The plunge in Hong 
Kong stocks sent a chill across Europe 
on Thursday, sending stock prices tum- 
bling in all major European markets and 
raising some fears of a blow to con- 
fidence that could curtail the Contin- 
ent's economic recovery. 

“Clearly there is some contagion go- 
ing on,” said Tim O'Dell, international 
investment strategist at UBS Securities 
here. Hie 10 percent drop in the Hong 
Kong market “is exporting a deflation- 
ary impulse to other markets.” 

Major stock indexes in London. Paris 
and Frankfurt fell more than 3 percent 
on the day. Trading was not particularly 
heavy,' however, and most analysts said 
the declines reflected the vulnerability 
of those markets to negative sentiment 
emanating from Asia rather, than any 
direct economic consequence. A drop in 
interest rates as funds flowed into bonds 
from stocks also should help cushion the 
European economy from any stock- 


market effect, analysts said. 

As in the United States, investors 
have grown nervous in recent weeks 
over the level of European stock prices, 
which have risen tty 30 percent to 50 
percent this year. Those nerves were 
accentuated two weeks ago by the pan- 
European rise in interest rates triggered 
by the German Bundesbank. And the 
memory of the 1 987 global stock market 
crash has loomed larger in the min ds of 
dealers and investors here with every 
downward spiral in the Asian markets. 

“It’s an almost inevitable reaction,” 
said Phillip May, head of pension funds 
at Prudential Portfolio Managers here. 

The Hong Kong selloff “provided 
people the reason they’ve been looking 
for to take some profits,” said Mark 
ClifFe, chief economist at HSBC Mid- 
land. “There’s been a lot of talk about 
the previous market collapse. There’s 
been a lot of talk about the markets 
being overvalued’’ 

In London, the Fiancial Tnnes-Stock 
Exchange 100-share index plunged 200 
points in die first few minutes of trading. 


then weaved moderately throughout the 
day before closing down 157.3 points, 
or 3.06 percent, at 4.991.5. 

Germany's DAX index fell 194. 1 4 * 
points, or 4.66 percent, to 3.977.26, and 
the C AC-40 index of French stocks 
dropped 101.19 points, or 3.42 percent, 
to 2,856.87. Most other European in- 
dexes fell by more than 2 percent. 

The London market was depressed by 
big falls in two stocks with major Hong 
Kong operations. HSBC Holdings, the 
second-largest stock by market value, 
plunged 176 pence, of more than 10 
percent, to £15.06. Cable & Wireless, 
which owns 54 percent of the Hong 
Kong telephone company, fell 30 pence 
to 475 pence. 

In Paris, luxury goods companies that 
sell heavily in Asia took the biggest hit, 
with shares in LVMH Moet Hennessy 
Louis Vuitton falling 72 francs, or 6.7 
percent, to 1.034 francs. 

Overall, though, the European econ- 
omy should be relatively insulated from 

See RIPPLE, Page 19 


U.S, Carmakers Face Troubled Future 


and dosing paces New Y0<M 
(Dos) 

Sauce: Asters. 


By Warren Brown 

Washington Post Service 

WASHINGTON — Be- 
hind the U.S. auto industry’s 
impressive third-quarter 
profits — a total of $3.2 bil- 
lion — are some troubling 
realities: 

The money came mostly 
from cost-cutting and from 
truck sales; catting costs re- 
duced the profits of some of 
the automakers' own subsi- 
diaries that are among its sup- 
pliers; and although sales of 
light trucks — meaning vans, 
minivans, pickups and sport- 
utility models — were strong, 
the benefits were not spread 
evenly across the industry, hi 
fact, some analysts say sales, 
especially of sport-utility 
vehicles, could decline soon. 

“The sales growth of sport- 
utility models is driven by one 
thing and one thing only: 
Sport-utility vehicles are cool, 
trendy,” said Christopher 
Cedergren. managing director 1 
of Nextrend, a division of i 
Maritz Marketing Research 
Inc. “But trends change.” 

Cost-cutting, however, is 
more of a necessity than a 
trend. Consumers are allergic ; 
to frequent price increases. 
Their spending falls as prices 
rise, especially if the price 
increases outstrip gains in 
household income. 

As a result, automakers 
have been trying to keep the 
lid on prices, as evidenced by 
their collective reluctance to 
raise prices on many 1998- 
model cars and trucks. 

To help hold down prices, 
car companies are squeezing 
production costs, which 
means putting pressure on 
component manufacturers 
such as Delphi Automotive 
Systems, a division of Gen- 
eral Motors Corp. 

Delphi’s third-quarter 
earnings plunged to $55 mil- 
lion from $238 million, 
largely because of cost-cat- 
ting at GM but also because 
of start-up costs associated 
with development and man- 
ufacture of new components. 

“We know that we can’t 
get much price out in the 
market, so we have to get 
better earnings through cost 
reductions,” said J. Michael 
Losh, GM’s executive vice 
president and chief financial 
officer. “We’re looking at 
reducing our component 
costs with all of our suppli- 
ers, including Delphi.” 


That does not mean GM is 
tossing Delphi to the wolves. 
Mr. Losh said. But Delphi 
must continue developing 
clients outside GM to ensure 
its long-term profitability, he 
said. 

GM reported overall earn- 
ings of $1.1 billion for the 
quarter, a strong performance 
for what is traditionally the 
weakest quarter for auto- 
makers. Cost-cutting gains 
and improved sales of GM 
minivans such as the Chev- 
rolet Venture (up 112 percent 
so far this year) were evident 
in the earnings of GM’s 


North American operations. 

Once a trouble spot in 
GM’s empire, the North 
American operations in the 
third quarter posted a profit 
of $423 million, up from $26 
million a year earlier. 

Hie gain more than offset 
the earnings decline at Delphi, 
said David Bradley, an ana- 
lyst with J -P. Morgan & Co. in 
New York. And GM can con- 
tinue doing well in North 
America as long as the com- 
pany keeps trimming costs 
and the light-tnick market 
holds up, Mr. Bradley said. 

But trucks are a big "if,” 


Mr. Cedergren said. Chrysler 
Corp. illustrates what can 
happen to au automaker with 
a truck-dependent strategy, 
they said. 

Chrysler reported third- 
quarter earnings of $44 1 mil- 
lion, down 35 percent from 
the like period in 19%. Ana- 
lysts traced the problem to de- 
clining sales of Chiysler’s 
midsize Jeep Grand Cherokee 
sport-utility vehicle as well as 
a drop in sales of the com- 
pany 's mainstay minivans and 
Dodge Ram pickup trucks. 

Sec CARS, Page 16 


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PAGE 16 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 

THE AMERICAS 


Investor’s America 




: wmwknc:' 


The Dow 


30-Year T-Bond Yield 


vv* iits/tv. 



MCI Earnings Plunged 57% in 3d Quarter 

No. 2 Long-Distance Carrier Begins Talks With 3 -Firms Ijringto Buy It 





S3E£Blig3 



Source: Bloomberg. Returns 


herald Trflwnc 


Very briefly: 


Gmydiiltp Our Staff FiemDnpmeka 

WASHINGTON — MCI Com- 
munications Corp., which has three 
companies bidding for it, said 
Thursday that third-quarter profit 
fell 57 percent as losses m its 
fledgling local phone business 
widened and growth Slowed in its 
long-distance business. 

MCI, the No. 2 U.S. long-dis- 
tance phone company, said third- 
quarter profit before charges fell to 
$132 million from $304 million a 
year earlier. 

Results show MCI is losing long- 
distance market share and that new 
local and 'international operations 
have yet to pay off. 

Still, analysts say MCI investors 
are more concerned about which of 
three acquisition offers will be ac- 
cepted than about quarterly results. 

“This marks two extraordinarily 
poor quarters,'' said Anna-Maria 
Kovacs, an analyst at Janney Mont- 
gomery Scott Inc. 

GTE Corp., WorldCom Inc. and 
British Telecommunications PLC 
each have offered to buy MCL Brit- 
ish Telecom already owns 20 per- 


cent of MCI. MG officials were to 
begin formal miles In New York on 
Thursday with all three compa- 
nies. 

MCI's shares fell 75 cents to 
close at $37.75. 

Saks at Washington-based MCI 
rose 2.9 percent to $4.82 billion in 
the quarter. 

A number of other major compa- 
nies reported thud-quarter results 
Thursday; 

• Delta Air Lines Inc. said net 
income rose 7 percent to $254 mil- 
lion against a strong quarter last 
year, while Southwest Airlines said 
earnings rose 52 percent to $925 
million. 

Both companies beat forecasts, 
but Delta's stock was down 6.25 
cents at $106.6825, and Southwest 
fell 50 cents to $35.3125. 

The results follow strong earn- 
ings from ocher major earners for 
the September quarter, traditionally 
a strong one since it includes the 
busy summer travel season. 

• American International Group 
Inc* said third-quarter net income 
increased 15 percent to $840.3 mil- 


lion as mild weather curbed damage 
claims against the insurer, even as 
foreign cunency losses marred its 
growth in U.S. dollars. 

Maurice Greenberg, AIG’s 
chairman, in a statement called die 
company's results “solid" and said 
that “the absence of major catas- 
trophes in the quarter was a positive 
factor.” 

Shares of AIG, the biggest U.S. 
financial service company based on 
market value, fell $5.25 to end at 
$106.6825. 

• Warner-Lambert Co. said 
third-quarter profit rose 30 percent, 
to $198 million, on increased sales 
of its cholesterol drug Liprtor and 
the diabetes drug Rezntin. 

But the results felled to meet ana- 
lysts’ expectations, and die stock 
was quoted down $1.25 a share at 
$147.75. 

Revenue rose 19 percent to $2. 1 1 
billion from $1.77 billion. 

• Baxter International Inc. said 
its third-quarter operating profit 
rose 16 percent to $159 million, 
matchin g estimates, on increased 
sales of blood therapy products, re- 


placement heart valves _ and 
products far intravenous nutrition. 

The share price fell $3375 to 
$5250. 

Sales rose 14 percent to $1.49 
billion. Baxter sold more of its 
products, such as a nutritional sup- 
plement given to very ill petients 
through an intravenous needle. 

Baxter said international . sales 
were up 18 percent at $804 million. 
Without the impact of the stronger 
U5. dollar, international sales rose 
25 percent, Baxter said. 

• Xerox Corp. said third-quarter 
net income rose 28 percent to $320 
milli on on higher sales of newer 
digital machines and improved 
sfl ks coverage, though the rising 
U.S. dollar ate into profits. 

The share price fell $L3125 to 

$ 86 . 

Revenue rose 52 percent to 
$438 billion. Before the effect of 
currency translations, revenue rose 
9 percent, the company said. 

Xerox, best known for its pho- 
tocopiers, has been expanding its 
line of digital imaging ma- 
chines. (Bloomberg, Reuters. AFX) 


■ Quaker Oats Co. named Robert Morrison, the former head 
of Philip Morris Cos. 1 Kraft Foods unit, as chairman and 
chief executive, completing a six-month search to replace 
William Smithburg. Separately, Quaker Oats said its third 
quarter-earnings fell 41.73 percent, to $775 million, after 
restructuring and other charges. 

• HSN Inc-, the media and retail company run by Barry DilleT, 
offered to buy die half of Tfcketmaster Group Inc. it does not 
own for $25 a share in cash, or about $3075 milli on. 

• Amgen Inc., the world’s largest independent biotechnology 
company, said it planned to buy bade as much as $1 billion of its 
stock under a repurchase program. 

• Newsweek magazine, a unit of The Washington Post Co_, 
will start a television-production company to create programs 
on topics such as politics, education and personal finance. 

■ Chile's economic output in August rose a greater-than- 
expected 7.4 percent from the year-earlier period. The in- 
crease raised concern that the central bank would move to put 
the brakes on the economy by raising rates. Separately, the 
central bank said that Chile posted a $282.1 million trade 
deficit in September as imports surged. Bloomberg. Reuters, ap 

Ivester Takes Over at Coca-Cola 

Bloomberg News 

ATLANTA — Coca-Cola Co. named its president, M. 
Douglas Ivester, as chairman and chief executive officer, 
replacing his mentor, Roberto C. Goizueta, who died Saturday 
of lung-cancer complications. 

Mr. Ivester, 50, has been president and chief ope rating 
officer since 1994. Hie appointment was expected. 

Mr. Ivester’s biggest task may be following in the footsteps 
of Mr. Goizueta, wholncreased Coca-Cola’s market value to 
about $150 billion, from $5 billion. He takes the helm as the 
world's largest beverage company seeks to increase its share 
of the U.S. market to 50 percent, from 43 percent. 

AMEX 


Bonds Soar as Buyers Bet Fed Won’t Lift Rates 


Bloomberg News 

NEW YORK — U.S. tends pos- 
ted their biggest gains in five weeks 
Thursday as investors sought refuge 
in Treasury securities after a plunge 
in Hong Kong stocks sent equity 
markets around the world reeling. 

“There is a flight to quality going 
on," said W illiam Dawson, a rands 
manager at Federated Investors in 
Pittsburgh. “You’ve got a lot of 
buying of our government tends 


coming from overseas.” 

Traders also speculated that the 
turmoil in Asia, sparked by concern 
that some of the world’s fastest- 
growing economies are slowing, 
will restrain inflation and keep me 
Federal Reserve from raising in- 
terest rates again this year. 

The benchmark 30-year bond rose 
1 11/32 points to 100 24/32, pushing 
its yield down 10 basis points to6.32 
percent in heavy trading. 


Traders said the Thursday events 
reduced prospects for a rate increase 
because prices of imported Asian 


told down U.S. inflation, and Asian 
demand for exports may slow, curb- 
ing U.S. sales and growth. 

“The Fed wouldn't be adding to 
the worry at a time when there is 
interest-rate pressure in these coun- 
tries," said Wayne Angell, chief 
economist at Bear, Steams & Co. 


and a farmer Fed governor. 

“ Inflatio n around the world is 
going to continue to be low,” said 
TomPoor, bead of global bond trad- 
ing at Scudder, Stevens & Clark. 

The Fed last raised its target rate 
for overnight borrowing between 
banks in March, to 5 5 percent Since 
then, economic repeats have shown 
the fewest inflation rate in more titan 
a decade. Fed policymakers are next 
scheduled to meet Nov. 12. 


CARS; After Strong 3d- Quarter Earnings, U.S. ‘Big Three’ Could Face Problems 


Continued from Page 15 

This happened, Mr. Cedergren 
said, not so much because Chrysler 
was doing something wrong as be- 
came its competitors were begin- 
ning to do things right. 

For example, GM’s new Chevrolet 
Venture minivan is taking sales from 
Chryster's Dodge Caravan and Ply- 
mouth Voyager models in a minivan 
market that has gone flat overall 
Similarly, full-size sport-utility 
vehicles, such as the Ford Expedition, 
and small span-utility models, such 
as Honda’s CR-V, are selling wefl. 


Sales of midsize 
models such as the Jeep Grand Cher- 
okee, meanwhile, are stagnant in a 
market segmsnt that is beset by a 
host of new price-competitive rivals 
such as the Mercedes-Benz ML320. 

Chrysler 1 s comeback strategy in 
tiie midsize sport-utility segment is 
to roll out the 1998 Dodge Durango 
— a sport-utility vehicle priced in 
the $25,000 to $35,000 range. 
Chrysler also plans to introduce a 
new version of the Jeep Grand Cher- 
okee next year. 

Chrysler can expect continued 
pressure in the truck segment from 


Ford Motor Co., which took some 
sales away from the mice hot-selling 
Dodge Ram pickup with a revised 
model of the Ford F-I50. 

Profit at Ford rose 64 percent in 
the latest quarter to a record $1.13 
billion. That performance proved 
tite success of the Ford 2000 pro- 
gram to lower costs and improve 
quality in the company’s global op- 
erations, said Alex Trotman, Forcrs 
chairman and chief executive. 

Mr. Bradley and Mr. Cedergren 
said strong sales of the Lincoln Nav- 
igator and Ford Expedition, FonTs 
biggest and most profitable sport- 


utilxty models, contributed to tbe rise. 
But analysts at JJD. Power & As- 
sociates, a market-research company, 
cautioned that sport-utility models 
would not keep banging in big profits 
forever. Sport-utility sales already are 
softening in major markets such as 
California, Power said in a report. 

“ff California is playing its typical 
bellwether role, the future direction 
for SUV sport-utility vehicle, is 
down,” tire Power report said. Even 
if sport-utility sales avoid a sharp 
decline overall, profit on those 
vehicles probably will fell because of 
the proliferation of models, it added. 


The Dollar 
Gets Jolted 
By Turmoil 
In Stocks 


Btiumtvfg News 

NEW YORK — The dollar 
fell against the Deutsche mark 
Thursday as the plunge in 
Hong Kong slocks dragged 
down the U.S, stock market. 

' “The Asian situation is tak- 
ing dominance at the mo- 
ment," said John Hanly, man- 
ager of foreign exchange at 
Bank Austria, “It’s scaring 
)le out of the dollar into the 
-it.” - ■ 

But the U.S. currency gained 
against the yen as the financial 
turmoil in Southeast Asia sent 
Japanese stocks plummeting. 

Weakness in U.S. stocks is 
bad for the dollar because it 
fans concern that global in- 
vestors selling U.S. securities 
will convert dollar proceeds in- 
to their home currencies. 

“The decline in Hong Kong 
sparked a stock sell-off, and flic 
rtftjinr is vulnerable to that,** 
said Andrew Hodge, currency 
strategist at Bank Brussels, 
Lambert. “The dollar's gain- 
ing against the yen because Ja- 
pan gets hit from an export 
point of view." 

The dollar was quoted at 
1.7673 Deutsche marks in 4 
P.M. trading, down from 1 .7860 
DM on Wednesday, hut rose to 
121.93 yen from 120.90 yen. . 

The dollar began its decline 
against the mark in Europe as 
traders bet that Hong Kong's 
crisis, which led to declines of 
more than 3 percent in British, 
German, French and other 
European stock markets, would 
spill over to U.S. markets. 

The dollar then extended 
losses in New York trading as 
Wall Street lost ground in line 
with those predictions. 

The dollar’s losses against 
the marie were curtailed by 
strength in U.S. bonds. In- 
vestors often flock to bonds as 
a refuge from falling global 
stocks. 

The dollar fell to 1.4640 
Swiss francs from 1.4826 
francs and to 5.9208 French 
francs from 5.9835 francs. 


The pound slipped to 


poun 
$1.6327 from $1.63 


111* 


4 ^ \\ \ r. K * l “ r 


U. S. STOCK MARKET DIARY 


INTERNATIONAL FUTURES 


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JU9t 313ft 306ft 30714 -6M 37.949 

Sep 98 2*9 2*6 296M -4 1474 

Dec 98 297ft 2*4 295% -314 21926 

EsL sorts 73tOOOW«rs tales 7751 3 
WwlS Opal k* 4073360 up &220 

SOYBEAN MEALCCBOT} 

UO tans- H oOibs par tan 
D«C97 22430 71900 22120 +0.10 43358 
Jl» 98 22X20 27830 UIAB -080 2WI6 
Mar 98 121-50 21700 21070 -1J0 1*252 
MOrW 22050 21650 21750 -100 16064 
NB 22250 31850 230011 -U0 MUST 
Aug 98 22250 2M50 31950 -2SX 255S 
Ed. srtas 2&000 «U* sates 2&404 
WWf* ap«l M 117571 Bfl 1522 

SOYBEAN ML OCSOY} 

60000 bs- cants par lb 

D VC9T KM 2492 25.1* 008 56530 

JdoM 2555 mi 2559 4L05 219*9 

Mrt 98 25-67 2635 2665 +OJJ5 WE 

MOV* 25-75 25-45 2174 -0-03 &OS3 

M*> 2500 2550 2177 4103 &4M 

Aug 98 2580 2570 2170 +005 619 

EaL sdes 10000 Weds sorts 2M42 
MM* opw M 1 1 un A. up %m 

SOYBEANS KBOT7 

UOObuBitataMn- carts. 

H« 97 699 688 6*4 -4M 67560 

JcmW 705ft 696 700 47,664 

Mrt** 71 IM 705 70BM S 21.187 

ISS? 21 ^21 &S 4 ■«* 1*412 

MM 727 718H 72M -4U 10573 

Eat sorts 5*000 Waits soles 5*057 
WMftopan fat 1714)91 off 139 


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Q ATS 11-7 1141 
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q^uutertN s-mmtamimii, 


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e- MTOe. 266 faeso Inqonrt & 1 J35 (ran 
capital gain. 

STOCK SPLIT 

snssssisv 

HamBma2tarIsiiB. 
b taftneti imsM Jwl split 
TWmBw SoSwcox 5 far 4 spEL 
VHK Fed 5 far 41 spit 

STOCK 

AgowFnd - 5% 11-14 11-28 

ERLYtaita . 10% 1001 1M7 

REVERSE STOCK SPLIT 
CiNttaeGanfag l farMmwrsesolL 
INCREASED 

ABWQift Q M 13-5 1-3 

AwwPoe Q .21 12-1 12-15 

AwJnftwB q 39 11-3 11-14 

Hrtn«iteS*os Q .» if-5 11-19 

INMCAUgHtags Q ,461031 12-8 

Stock Tables ETxpknned 

3SaeggSB!ega aBaBgMHy»»-* 

bos been ptdd. tbe yeonhfarsfaw nope andMdBndanshmh^rthenwitajs^LUrtHK 

dhaftte nrted ratasardMmitaora araiuol dWwwniiEKwiSKSS^^ 
(fadoreduflwsiili^rtslndiiSiiMenil-dMdendpoWtfifavmonSS'^-?^ 

tBssarflMaKaaa^aSSS 

^sassasssststsss ss^s s^ 

■i - when issuciV ww - Mrilb mnonts. z - ex^TOtaend 

M.wttliuirfwanii^iNewflirMeiidimasolTOtafulLiM^ 


WHEAT axon 

SUUOIM Minimum- carts per bust* 

D«C 97 373ft 366ft 36644 -7ft S681t 

MrtW 380 38044 -644 VMZ 

n ^ J!? 

3K 389ft 390* -5ft 105*8 
Ed. sorts 1MMHNMS solas ZU25 
Werfs qxn U T0&.I84 op 304 

Livestock 

CATTLE (CMCIO 
40000016' ends per b 
TOW WJO 67.12 67.72 +025 4L598 

F*b 98 69-32 6840 49.15 +002 21.197 

Aprg 7190 7132 7157 -0.02 11432 

7WS nj2 - Cjn 

JtaJ 7050 7005 70.10 4L2J 2913 

(him 7130 72X5 7185 4U0 1XV5 

Ert. sorts TS654 IMS soles 13.164 
Wrt. opM M 90J29. up 732 

FEEDEA CATTLE OCMEIO 
50000 tap.- rants per ta. 

22. « 2S 77JB nso +0 - ls ww 

78X0 +067 7-560 

jroW 7930 7830 7095 +055 4,971 

2-2 JW njs +«45 MU 

SL 1 ! 2-2 £5 nja +4142 *47 

morn euo 7930 79 Jo +oas ess 

safes 4.137 WkBfs sale s 2X85 
Wsdsmen kil 1&63A sp 37 

H0eS4jM8(aiEB 
eiun tat cart, par lb, 

CfecW 6IJ2 4035 61.15 +057 20.94? 
Fmm 61X5 61X0 6U5 io» IN 

^2 WU 

JbuB eoSo 6012 6042 +032 L967 

JUI98 6490 6445 64X0 +040 MB 

Est sofas 4463 Wrts soles *£» 

Wan open U 37X29, up 447 

PDJUC BELLIES CCMElO 

AUOOfeb'flMfcprtfc 

F*98 6535 <3J0 66X7 +1X7 45M 

«0T« 669i 6LM 66s : +1X2 904 

Norm 6630 *170 6005 +1X5 241 

EA sofa* 1379 WtafesrtesLXb 

Win open H 7,909, off 64 


HHP> Um Latest Clip* OpM 

ORANCE JIBCE (HCm 

lOooo l»r arts prtlO 

No* 97 7070 6070 6090 -0*5 10145 

ABM 7390 7105 7129 4LM 17X85 

Mrt 98 77JOO 7530 7535 -LOS 9.924 

May 98 KUH 7040 7UD -080 U44 

ESI rates HX Wetfs sdra 6320 

Wtaft open tal 4t/m, up WW 

Metals 

COLDOKMX) 

l« taqr dafcrs perlniir or. 

Od 97 32430 32300 32300 +090 120 

NO* 97 32UD +T4B 1 

Dec 97 32000 33340 32470 +1.10 81014 

Feb 98 327X0 32530 32040 +1.10 27,099 

Apr *8 32940 327.90 328J0 +L10 0040 

XsifO 331 JD 33000 33030 +U0 10576 

A^l 98 331® +1X0 4^30 

Ocfm 334X0 +1X0 487 

Dec 98 337X0 33000 33040 +1X0 VU97 

Est safes 35000 Weifs safes 29404 

nn open h 170416. ip Lira 

HI GRADE COPPER MCMX) 

25000 Jbs.- rants par fa. 

Od97 93.70 raXO 93X0 -140 471 

NOV 97 93X5 92X0 9340 -140 2X32 

Dbc*7 95X5 93X0 93X0 -145 27X96 

JwM *550 *6X5 *020 -1JS 1X60 

WN 94X0 *620 *420 -145 LlM 

Mrt 98 95X0 9020 9040 -1.15 0833 

AW W 90*0 9020 9020 -1.15 L045 

95X0 9430 9430 -1.15 3X32 

Jm9S 95X0 9190 93X0 -1.15 1X11 

Est sefas 1.10B Wmn»«TOs0373 
Wen open U 53X80 off 733 

silver waiua 

S000 tof aborts par ho* nt 
Ort 97 4*1X0 XJO 1 

_ 492X0 JgJO l 

Dacra 508X0 49250 492X0 -9M 65433 

J«IM SB3J0 475.10 485.10 -S-50 M 

MarM 51000 «BJD 499 JO -9-70 19,5*8 

Mn*98 514X0 502X0 50250 4 JO 2J02 

JPI9B 517X0 50540 50540 -9JO 1778 

Sep 98 508X0 -9 JO 638 

EAHfe* 22000 WstP* sates I94B8 
Wan open M 98X80 OR 651 

PLATINUM MMER} 

Ktrer Ot. doOnrs per TO* PL 
Ort97 42050 42040 42040 +170 141 

JrtlW 42060 41000 42250 +1J0 U233 
Art *8 420X0 418X0 41890 +2X0 947 

Est srtas HA. Watts gates 2301 
Wtan open tat 14X42. ap 271 


LONDON METALS CLME1 
MtartpsrmnMclon 




MpcaU 

1577ft 


1573ft 1565X0 1566X0 

1601X0 1402X0 1594X0 159S00 


207800 2079X0 2106X0 2107X0 

3* , 6WX0 610X0 612ft 613ft 

mom 621X0 622X0 *hkhi 

6215X0 622500 6390X0 6400X0 

^ 6300X0 6310X0 6480X0 MWai 

5385X0 53*500 532SXO 
5410X0 5415X0 5450X0 sam 
Bra ISpcdol HU Cin6e} 

12S 7M 125&mi 1256X0 125500 

1277X0 1277ft 1275X0 1276X0 

Ht 9 h I** Ctart Ctifi Ophfl 

Sf ’SS? 75X4 +0X9 4J« 

SH 9111 95X4 95X7 +0.13 4311 

sSS TOW +013 366 

■ 9493 +4Ln 12 

Wm TOw L»9 

Wen open H 9X33, oH 420 


Mgb Low latest Chge opH 

1B-YEA E PBEttCH COV. BONDS (MATIFI 
FRoaoaa-rtsrtioopci 

Dec 97 9842 . 97X0 9814 +033 115344 

M»9B 97X4 97X6 *7X8 + 0» 7,706 
Ert. sate 208662. 

Open tal: 123X59 alt 11X27. 

ITALIAN GOVERNMENT BONO (LIFFE) 
m.200 Samoa - pb of 100 pd 
Dec 97 112X4 111.53 111X7 +0.14 111132 
Worm N.T. H.T. 111X4 +0.15 U71 
Est srtas: 59,191. Pun. srtas: 57X27 
PlW.opnH.- 114563 on 12 

U BOR 1 -MONTH (CMER7 
83rtRBBn.ptaon00peL 

TO? TOJ3 9429 +0X6 42X77 
9 *C% TO18 9413 9414 +0X7 13X23 
Jon98 9426 9424 9424 +0X5 1*14 
».»«■* T23BB Wen srtea 4810 
WMSrawnH 42X82. up L242 

EURODOLLARS (CMEJO 

^*g” 0 TOM 1, Sffi 9416 +804 24018 

SS S ^ ™ 

•Ain 96 9407 9091 9402 +0,10 345457 

J«i8uw 

Dec 98 93X1 9873 9884 +0.10 229X50 

a5T<» TOS3 +0.11 wiraa 

S2 SS S£ 9180 + 0 - 11 ro.iia 

r£S 2P 3 ’ nri +0l11 J,f l253 

Dec 99 *175 9867 9870 +0,10 08395 

ts£ «U8 93J0 3x9 nxxr 

Jmtn 9873 *345 9867 +0X9 99U3CH 

&L Sorts 98U20 Win ante 2812*9 
Wrt* man tat 2X18501, up 7337 

BRITISH POUND (CMEH) 

6ZSW p+lWidVS ?^S'^X294 +00004 36.12* 
M«9B 1X260 1X200 1X2AWUMM 

1X182+0X002 >7 

■pusaer 

Atert m J710+OX004 53461 

5® J243+Q0004 2X27 
Jw9* 7284 7267 7267+0X004 522 

S£25iSSlS5S? "•pj * 314 

«Ktr» epan M 57XZt up 1X94 

EjERMAH MARK rCMElO 
] 2%000 makfo $ per mvft 

-SH J034MW *2M 

K ^ ■« JKSS S 

YEN (CMEJO 
g*» wa s Prt 100 ™ 

TOW 430 -8250 82650X075 84891 
JtarTO 8428 8374 33T, J&fxsa 9 SB 

SSbrjRiSrS" ,H 

S^HWWCCCMESI 
P«r Bone 

B 

■aaiKKsS 2 " “ 

mbocampesoccmejo 

50W100 pesos. S p er p isa 


Wgh UM Lofert O>oa opH • 

Est soles: 646*8 Piw.srtes: 76074 
Prav.apenlrti 478697 op 561 i 

Industrials • 

COTTON 3 (NCTNl i 

58000 tas.- ante perfa. 

Ort 97 7275 7175 71X4 -649 48*0 ! 

Mrt 9* 7160 7X12 7118 0X1 14926 • 

*ta*9» 74X5 7170 7420 07* 9.124 , 

J«6 98 . 7570 7460 7496 4161 8X38 

Od 90 7670 75J0 7570 -05* 833- 

Est solas NX. Wen srtas 14956 ! 

Wetfs opanH 92X40 up 157 

HEATING OIL (NMER) ' . 

42X00 oat carts par pal 
taw 97 59X0 57.90 5809 -068 28920 

5890 59X2 -0.74 48214' ^ 


Dec 97 
Am 98 
FAR 
Morn 

-98 
f98 


60X5 59.60 59X2 -071 22.590 

40X5 0.75 99X3 -861 1X09* 

------ 5»70 0.12 0.12 -057 8653 

Apr9S S8Q5 57X7 57X7 -018 &?ao * 

™*98 5675 56X2 56X2 -0X3 UH 

EsL Mies HA Wen sales 77765 '■ 

Wen open fad 140798 aH 1,027 

UGHT SWEET CRUDE (HMER) 

1X00*14- Mn par DM. 

tafra ?f-S V U 4L28IT7JC- 

tan9» 21X2 21X5 21-20 -023 53404- 

P* 21X8 21X0 21.12 -023 38333 ' 

S-? 5 71X0 21X5 -018 18171 

JPr** 2^' 21X0 -013 14846 1 

19*1*98 21X4 21X2 21X2 -4X1 12JS4 , 

Ert. sola NA. Wan safes 124427 i i 
Wtan open H 3981*1, oB 1875 

NATURAL GAS CNMERJ • »• 

mon im Mn. s per nm Mo 
TOW 1650 1X20 3X25 -0112 

F 40 3XW 3JaD 4L1U 
Jan 98 1635 1430 1430 -aim 

J-IW 1040 3X70 -0X68 
Mar 98 2X20 2X60 2X80 -00*5 

Apr98 2X50 2J80 2X80 0050 

EAsrtes I4A. Wen sdes 67X56 
Wanopen W 256B7T. up 407 

UNLEADED GASOLINE (HMER) 

«XOO Ort, rants per gal 

K£E H?* “- 15 -853 

0«W 61.10 S9S0 59.96 -0X8 

£52 5W0 S 5 - 84 -0X8 

B*.g 40-95 60.1! 6811 -0+8 

“TOTO *1X0 «U1 60X1 -0X8 

£E.™ TO°° ail 5111 -048 

5*7** 43.90 62X6 62X6 -0X8 

-Wl9# fiZJl -0X8 

Eat sates NA Wen safes 27X63 
Wan open M 94857, up 2JB 

CAS01L0PE1 

ATOnparagrte taa- tad at KM hns 

N»*7 182J5 18075 IB2XQ Unch. 1L2S3 • 

,8US 183J S +0J5 1 

J5KS 1KJ0 ,BU0 +0JD 14146 

Fata W 18475 183-50 1*475 Inw , 4c, ' 

Ara** IS" ,8JJ0 ■*825 UM . 

fig* ,79 -25 179JS +025 JS- 

MUM 177X0 177J0 1 77,25 +825 LM 

Eat TOtai 11X79. Pm. safes: 1444* ! 

Pie*- Men Intx 108972 up 76 1 ] 

BRENT OILIl PE) 

V**" 2^7 20X0 20X2 —6,31 71 




2M«:, 

51X42 

28345 

30X16., 

18775 

9J16-L 


24237. > 
24009 < 
14776 i 
7X34 , 
5J7P-, 
4*89 - 
1545 • 
2X48 i 






Era m 


Food 


COCOA <NC5E) 

10 metric tans- Spertae 
Dec 97 1606 1582 

1600 

+7 

34052 

Mar 98 

1667 

1620 

1638 

+7 

27J74 

Min98 
■tal 98 

1651 

1662 

I&0 

+8 

12X70 

1679 

1663 

1679 

+8 

M4J 

Sep«l 

16*9 

1690 

1699 

+8 

4700 

□■cM 

1718 

1706 

1718 

+8 

2018 


Est safes 12801 WM totes 11696 
non epes kd 10156L eff22?7 

COFFEE CORSE) 

37,500 Bn.- cants prtb. 

Das 97 151X0 1x4)0 15820 +100 1L545 
Mar 98 1X2X0 137X0 IQ. 10 +1W • 8230 
MO*** IT** 13650 13850 +2.10 2XD5 
Jrt» 13550 131X5 1 35X5 +125 1256 
SipM 131J5 12800 131J5 +12S *66 

ESL sates 9X86 Wen rates 4640 
Tita n opcnM 24068 up 161 

SUGASWORLD II MCSE) 

111010 Ik- cants per b. 

Mar 98 11X5 MJ3 T1J3 Ouvfc 881*8 

MarTO 11X6 1134 11X4 4U» 28182 
Jrt9* 11-72 1L63 TIX6 +0X3 18193 

Od 98 11X3 11 XS 1U5 +0X4 19108 

Ert. sates 14917 VHi srtes 14053 
Wen open H 158004 op 1152 


107-04 107*38 + 30 232X28 
_ . . -14 undL 

^TOte7MIlW0n srtra »«9 

mnopoiw 337JXL op 7.193 

SJJiJBWniHYrawn) 

2 ZS 

s^ssjsr^sr 15 

ajMssara 

UttlFR) 

SLHBTIan 

Ss*- *°TOl- 9S40B 

n«r. span lot: 205M3 op laSD^ 

(tfiNMAH GOV. BOND ojesn 

^^WW-ptertTOOpa 

5E2 IS* 1O1X510U7 +0X5 20X30 

Mart* 101X8 101X8 101X4 ♦+££ vmS 

FBH.opea taL- 2*4008 off \tna 


asEJsssss" 1 ™ 

Deep? 92X6 92X2 92X4 ,«««« 

sssaMr-ar*— 

His ^ i ^ 
SSSgg «Ss 

SwiS kS taS. iSS 

KOlBr 29L433 

Fra. open M: U79.92* op 21"* 

ggegsasp 

Kto 3a» 

Ann 9SA4 22? + 0X7 51,5a 

S2 ???? 

Dos 9* 

Mar 9* 

Jin 9* 


» |fis ggi 

3027 20X0 20X1 -Sta TV+S ! , 

M.10 18W SS ^ \l ffl-” 

J2S K- 43 **XJ -tt» 

»A2 19X3 19X0 -0J6 

B8B**3MS2. Pri*. safes : 3:^87 ^-rt 

P*'. op*q taL 154801 op 24M * 


ten 98 

Feta 9* 

Mar 98 

A&W 


illla’ 

*616 PXffl + S2 44203 

*684 +0X7 12339 

OpTOlaUlSUSl off 2564 

^ORtHEVBQURXUJFm 

srsrg'&j 

ta" 91 968* TOJ9 SS MWlS 

Sep 98 *491 9XX6 ufi * 7 - , 6+ 

TO* as as §& 


Doe 97 947,95 *68X0 956.75 iiu 
Mor% 97275 M9no Jl’S 

*** S4 ^ 16 

"Mn open u 198767, off L4J? 
2?BJ0*ttlFPE| 

50380 5069.0 5S3SX - 1£] 

PW-kTOa 12971 
™.openlnL; 74113 off 474 

WntMATin 

Bngi=Fsi 

Open Jrtj 8803 W1JS , 


‘l -i 


mm 

4418 

W14 


7L017 J . 
M96 ; 


Commodity Indexes 


& 


Ctou p — - > 

qg tS:d 

145.49 146.12- * 

74X69 jSfi ‘ 


Olft 


'^>-c>.iJsSb 




u* i 


wrier 

ffiiv h 


n*,* ; a 


^ /U' 

/ ’ , ''fll 

'"O 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


PAGE 17 


Investor AB Weighs 
Cuts at Defense Unit 


A .T..r 


*>r r> Lr V: 


.f-’.VJT- /- 

' - 


i Rales 


. J . 






* ! UtoriFmm 

• STOCKHOLM — Investor AB 
reported a sharp fall in profit for the 
first rune months Thursday and an- 
nounced that it was considering re- 
structuring its aeronautics and de- 
fense unit Saab AB because of a 

V ““to* for small commercial 
aircraft and considerable losses. * ' 
; . Investor, the hub of the Wallen- 
berg family empire that controls 

• many of Sweden’s largest compa- 
nies, said profit for the first nine 
months dropped to less than an 
eighth of earnings in the year-ago 
period because a huge one-time gain 
inflated the year-earher figure. 

• The company said profit fell to 
1.56 billion kronor ($203.3 million) 

. from 1 1 .35 billion kronor. The year- 
•j; earlier figure includes a one-time 
•• gain of 12.4 billion kronor from the 
; side of Scania shares. 

Saab said it was considering end- 
ing production of the Saab 340 and 
Saab 2000 regional aircraft Citing 
extensive overcapacity in the world 
market for small regional planes^ the 
company said it would begin to fo- 
: cos oo increasing cooperation with 
other aircraft manufacturers. 

.. Saab announced separately tha t it 
bad made a profit of 262 million 
kronor in the first nine months of the 


ra P v ^ {if Saab Automobile AB, 
which likes to advertise that Sa»h 
cars benefit from the group’s 
aerospace know-how. Saab Auto- 
mobile is co-owned by Investor and 
General Motors Corp. 

Investor said that its net asset 
value was 9636 billion kronor, or 
4*1 kronor a share, as of Monday. 

30. the net asset value was 
1 0 1 23 billion kronor, or 506 kronor 
a share. The value for its bigger 
assets has risen about 31 percent so 
far this year, Investor said, com- 
pared with a 28 percent rise for the 
Stockholm General index. 

Other asset sales contributing to. 
profit was Investor’s sale of shares in 
Incentive AB, a holding company, 
for 3.43 billion kronor, and TV4 AB, 
a television channel, for 710 million 
kronor, the com pany said. 

In addition to Saab, Investor 
holds dominant or controlling stakes 
in major Swedish companies such as 
Astra AB,.a drugmaker, Ericsson 
AB, a tel ecommunica d ons-equip- 
ment company; Electrolux AB, an 
appliance maker, and Skandinav- 
iska Enskilda Banken AB. 

(AFP, Reuters, Bloomberg) 


EUROPE 


Loony Advertising? 

Agency Promotes Moon as Billboard 


Return 

LONDON — If two advertis- 
ing men, Gary Betts and Malcolm 
Green, get their way, the moon 
could be more than just a part of 
the solar system. It could also be 
the world's biggest billboard. 

Mr. Betts acknowledged that 
he and his partner were seeking 
publicity for their fledgling Lon- 
don-bared ad agency. The Mighty 
Big Idea, but he also insisted that 
the idea of projecting corporate 
logos onto the moon by using the 
sun’s light is more than a publicity 
Stunt. 

Mr. Betts said be and Mr. 
Green conceived the idea of ad- 
vertising on the moon when they 
were sitting in the office and 
thinking, ‘‘where would be an 
amazing place to put adverts?" 

Subsequent conversations with 
scientists at the U.S. space 
agency, NASA, and Britain's 
Royal Greenwich Observatory in 
Cambridge convinced the duo 
that the idea could work. 

* ‘The actual process is danger- 
ously simple," Mr. Betts said. "It 
is two, vast, minor-like reflectors. 


They are packaged rather like an 
umbrella.” 

He added. “They are really 
quite big, hundreds and hundreds 
of yards." 

The technique, said Mr. Betts, 
would be to have the reflectors 
float in space, using the moon's 
gravity for swing and the sun’s 
power to projecL light onto the 
moon surface. 

Sounds simple. 

But Robin Catchpole, a re- 
search astronomer at the Royal 
Greenwich Observatory, said that 
while theoretically possible, it 
could not be easily implemented. 

“I reckon if you're going to 
have a logo you can see, yon need 
a mirror with a radius of 200 ki- 
lometers," Mr. Catchpole said. 
"Basically, what you need is a 
mirror thai's about the same size 
of the image you want to proj- 
ecL” 

Mylar foil would be the thin- 
nest and lightest material that 
could be used to make such a 
mirror. "1 worked out that the 
mirror would weigh about a mil- 
lion tons," Mr. Catchpole said. 


year, compared with 133 million 
kronor in the same period last year. 
Investor shares fell 1 130 kronor 


# V«/-/ f fcVr *: * 


Investor shares fell 1 130 kronor 
to close at 37130. 

Saab Aerospace said a decision 
on whether to pull out of manu- 
facturing the two civ ilian aircraft 
would be made in a few months. 

‘ f The regional aircraft market has 
become tougher and tougher over 
the past few years,’ ’ said Gert Schy- 
borger, the division's presidenL 
“We need much higher demand for 
our aircraft and a better return to be 
able to maintain manufacturing." 

Winding up its commercial plane 
manufacturing would be a bitter 


Ericsson Net Soars as Krona Falls 


CB&fUafbf Oar Staff Fma Dupotket 

STOCKHOLM — Ericsson AB 
said Thursday ] ts third-quarter profit 
more than doubled as sales ofmo- 
bile phones and their networks 
soared and it benefited from a 
weakened Swedish krona. 

Profit, at 2.91 billion kronor 
($378.4 million), compared with 
138 billion kronor a year earlier, 
was bettor than many analysts ex- 
pected, but shares in the company 
Fell 17 kronor to dose at 357. 


"Ericsson had a strong report," 
said Karin Hoeglund, a trader at 
Nordbanken AB, "but there was a 
little disappointment because there 
was a lot of profit due to the cur- 
rency effects. . 

Companies .that rely heavily on 
exports benefit when their home 
currencies drop, as overseas rev- 
enue then is worth more when con- 
verted back to the home currency. 
Bnt that effect does not directly re- 
flect a company’s performance. 


The krona fell about 1 1 percent 
against the dollar in the first nine 
months of 1997. 

The company said sales of mobile 
phones and terminals more than 
doubled in the first nine months of 
1997 as its market share rose. 

Operating profit in die third 
quarter rose to 4.67 billion kronor 
from 2. 1 1 billion kronor a year earli- 
er, while rales rose to 40.41 billion 
kronor from 28.17 billion kronor. 

(Bloomberg, Reuters) 


Philips Links 
Profit Surge 
To Effects of 
Restructuring 

Cat^hrOarSxjffFmmPepjtrin. 

EINDHOVEN, Netherlands — 
Philips Electronics NV said Thurs- 
day ns third-quarter profit rose al- 
most sixfold before one-time gains, 
showing the early benefits of a 
"painful restructuring program." 

Net profit came in below expec- 
tations, though, after a final charge 
related to its move to sever ties with 
Grundig AG eroded one-time 
gains. 

Europe’s largest consumer-elec- 
tronics company also cut loose an- 
other division, selling its car-sys- 
tems unit to Mannesmann AG of 
Germany for 13 billion guilders 
($750 million) because it said the 
unit was too small to compete. 

Profit before one-time items rose 
to 721 million guilders in the quarter 
ended Sept. 30 from 123 million 
guilders a year earlier. 

The company, also had a one-time 
net gain of 711 milli on guilders, 
mostly from its sale in August of 1 00 
milli on shares in Taiwan Semicon- 
ductor Manufacturing Co. That 
helped the company honor a pledge 
to achieve double-digit growth. 

Including the one-time gain, net 
income surged to 1 .43 billion guild- 
ers from 123 million guilders a year 
earlier. 

Still, one-time gains were at least 
200 milli on guilders lower than 
seme analysts had expected after the 
special charge for severing Philips’s 
relationship with the unprofitable 
Grundig. 

Sales in the third quarter rose 18 
percent, to 18.88 billion guilders 
from 15.99 billion guilders. 

Philips shares fell 10.80 guilders 
to close at 160.20 in Amsterdam 
trading. (Bloomberg, Reuters) 


Frankfurt 

DAX 

4500 

4300 | 

. 4100 f 

3900 J 

3700 y 


London 
FTS£ 100 Index 


Parle 

CAC4Q 


M J J A S O 
1W7 


5500 

3250 

5250 ft 

3100 A A 

5000 JW 1 

m An 


mj v 

4500P V 

miy 

4255 M J J A S O 

M J J A S O 

1997 

1997 


Thursday 


Amsterdam 

Brussels 

Frankfurt 

Copenhagen 

WSSP*” 

Oslo • 

London 

Madrid 

mm 

Paris 

StocfchoBra 

Vienna 

Zurich 

Source: Telekom 


AEX • ‘ ‘ 

SSL-20 ' 

PAX ' ■ • ■ 

StocK Maritei 
HEX General 
QBX • : 

rrsEioo 

Stock Exchange 
MJBTEL 
GAG 40 
SX 16 

ATX 

SP1 


mm 91547 *3>61 

ftgW -&S 8, 
3^77JB5 4,171.45 -4.68 

545.63 66086 . -2,33 

3,777.13 339081 *232 
. 732.88 747.33 -134 

JkMtJSB 5,143-30 -3-06 
S844P- . 680,42 -ZA3 
15712 15,997*00 -1.78 

2JBS6JB7 3,9 58.06 -3.42 
3,344*98 3,45138 -3.08 
1 ,37409 1,4ia0g -3.IP 
3^17J93 3,708*66 -2.45 

UvnuumHl Herald Tribune 


Very briefly: 

■ Cariplo SpA, Italy's fifth- largest bank, said fust-half profit 
grew 20.4 percent, to 227 billion lire ($130.2 million), as 
rising fee income offset a drop in interest revenue. 

• SGS-Thomson Microelectronics NV. Europe’s second - 
.largest semiconductor maker, is considering a plan to sell the 
equivalent of about 7 million shares in new stock and con- 
vertible debt, raising an estimated S540 million. 

• Banco Bilbao Vizcaya SA said higher earnings from com- 
' missions, trading and its Latin American investments lifted 
profit by 26 percent, to 88.85 billion pesetas ($590.4 million), 
in the first nine months of the year. 

• Munich Re, the world’s largest reinsurer, said earnings for 
the year that ended June 30 rose to 15.65 Deutsche marks 
($8.76) a share from 14 DM a year earlier. 

■ Novartis said its sales for the first nine months of the year 
rose 21 percent to 23.9 billion Swiss francs ($16.19 billion), 
thanks to growth in its core pharmaceuticals business. 

• Ireland's central bank, bringing irs money-market practices 

closer to that of the Bundesbank, will set a fixed or variable 
repurchase rate, with a two-week duration, once a week by 
tender beginning Nov. 20. Bh*mberg, afx. afp 


tt ■ 

yr.y- ,■■■• 

«#. — ■ 

it * 


WORLD STOCK MARKETS 


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** r* r- =• 


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, 

-- 


Thursday; Oct. 23 

Prices In local currencies. 

7WMi«s 

High Low Close Pm. 

Amsterdam abcwocibi* 

Prevtoos: 91547 

ABN- AMRO 39.50 38 3840 39 JO 

tan 1*2.70 156 157 162X0 

5230 5050 5150 5ZB0 
345 T ff$n 339 34880 
ISO 141 141 149 

3420 33 3330 3380 

9250 91 9220 9150 

DwdtKtePet 11150 10750 10920 111.70 

DSM 18750 18050 18120 18860 

3120 2980 3060 3228 
7920 77 JO 79 m 
7DJD 68 69 JO »3» 
55 JO 5320 54 5580 

92 8140 8723 9450 
.Hdmkcri 33650 324 32620 33840 

HMMPwmom 116 11020 11190 11620 
HunfDougKB 90J0 8850 8650 9050 
‘ " 8860 84 8550 89X0 

7QJ0 6860 6920 6920 
48 46.80 47 4820 

74J0 73 74.10 7450 

6880 6480 6680 6960 
5760 55 5550 57.10 

OceCrinkn 7A0M 234 234.10 2-sWO 

PhOpsEICC 167 156,80 16020 171 

Priramm 11620 71120 11320 11X90 

RmmdHdg 81.90 »20 8050 8220 

104 19150 19150 194 

5820 5660 57 59 

191 18960 18950 19250 

toanto 11850 11820 11830 118 

RoraKMrii 109J0 10420 107.70 110« 

UTdhmr 109 JO 10520 10680 11820 

, fends MO 10960 105815 10620 110 

VNU 4420 4080 41 4420 

WctosKloo 25020 237 24120 25260 


ABN- AMRO 
Aegon 
AboU 
Ahn Nobel 

.OeanCoL 

BaUWenoa 
CSMcva 
' DonCKhePei 
DSM 
Etenar 
Forib A raer 
Gdmnfci 
.Mncai 
Haaemeyer 
.Hcmtan 
Kooaovenscva 
HunIDougkB 
I NG Group 
KLM 
KNPBT 
KPN 

NedfewdCp 

Nubidts 

OceGrinkn 

PhOpsElec 


• ••-.I Rnnadod Hdg 
, Kobeco 
RDdaaioo 
.' - BoftlCD 
Rmnto 
• Rural DwWi 
Uiumr 
.fendnlnO 
VNU 

. - WeMnKIcro 


■yr- * ’• 

•. % , . l)*- . *■ •* 


. -r 

~ '^«-s r.- •- 


Markets Closed * 

* The stock market in 
Bangkok was closed Thurs- 
day for a holiday. 


Bombay 


HtaMtlwor 
HWoN Pdfe 
M Dev Hi 

rrc 

xrmuxT on 
Stale Bk India 
Sted AuOraRy 
Tata Eng Loco 


-Brussels 


BBL 

CBfi 

Cotaiyt 

MtabxLton 




«w »»lj— 1ggg 

pmiWi:4M22* 

599 590 59460 6DU0 

1438 139250 140150 
50760 500.75 5Q52S 
10850 10250 

43450 619 62360 630.50 

36425 257 258 3K66D 

415 «VK 404 41160 
28160 271 274 2M 

M'V 

162S 1555 1570 lgg 

7190 6960 7010 

9190 8960 9020 92W 

3145 3060 3145 TOO 

19000 18100 188® 19325 
1750 56TO 1^ 17® 

7580 7500 7M0 76J0 

34SB 3279 3400 XJ70 

7040 6850 6970 7090 

1560 15510 lOO JSffl 

5600 5350 5510 5620 

14200 13550 13S2S 14425 
14425 385T 14125 14825 

14100 13675 13050 14£ 
5000 SHU 3000 5020 

9350 9010 9200 9500 

2MD 2090 

I2IS5O llflZSO 12l3» 12MO 


Copenhagen s«aSg{£g 

440 440 450 468 

1937 997^ ITO ^ 

Bk MW Mj 2^0460000 

446000 443000 444500 460000 

760 7« 7A» 7M 

116265 >e® 

3536® 341 “j 

4J9 «2 ^ 

483 463 471 482 


ForitaAG 

Gnmo 

GfiL 

GmBonqM 

UeaefcM* 

'UUIO 


JeNDamk 


Frankfurt 


AMBB 18480 

AdUta 249 

NOOnrHda 428 
Nbna 12660 

BkBMta 4730 

BASF 62J0 

m( 41 JO 

BtaW 1380 

CKAGCoionia 16760 
6430 

D*UwBcm 131 
Ob*hm 90 

grotaetwBju * 121 

DedTctaton 32 JO 
ptafeefBadi 79JS 
ente 295 

Egw mwMoJ in 

ST rl 

,s \s 

HEW 47360 

HachUH 8380 
77.W 

KnWMI 588 

■ Utanevcr 92.20 
5p0* 1140 

fLAnroR 3210 


J^te>BSefctJnH38J0 

79JB 

gUBtHBuKkR 563 
Ftanin 49350 


DAX: 397736 
Pl«taW:417165 
180 180 \usa 

247 24760 25390 
M 410 441^ 
12360 iaa 12850 

4660 4660 *7-95 

&m ®-7o 4^2 

W60 7780 « 

106 10* 108W 

6SXS 6105 60 

(065 8180 
40^ 4130 040 
USD ’Jg 

61® s a 

l»1o lg.10 135.10 
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113W ™ “ 

RJ R| ^ 

1 9^ 


S ng »5 


3424 3840 

76W »J0 

S4&50 549-50 MJ 

485 48760 » 


RWE 

SAP pH 

Sdienng 

SGL Canton 

Stamens 

SprinowCAmD 

Suedzucker 

Ttarrawi 

Veto 

VEW 

Helsinki 


EmaA 

HuMmakll 

Knnfea 

Kesko 

ffl-aSa A 

MefanB 

Metaa-SataB 

ffesfe - 

NaktaA 

Oriofr-YMyime 

OtitnkumpoA 

UPMKywnene 


Mgk Low 

87.10 8340 
494 478 

17460 170 

269 260 

11630 11440 
1530 1530 
880 B45 

425 412 

98JD V5J« 
556 556 

B67 841 

1167 1146 


oom pm. 
8160 8760 
478 500 

170 175 

264 26660 
11440 12060 
1530 155S 
860 IBS 
414 42860 
9630 9980 
555 570 

841 868 

1147 1184 


BSkyB 

BritSted 

BrtTctocon 

BTR 

Bunnah Castral 
Burion Go 
Cable Wbetass 
codbunrsuw 
Cotton Coma 
Cbnml Union 


Hlgb Low Close Prav. 

442 438 431 449 

130 184 188 1-71 

4.78 440 488 AM 

232 Z16 235 233 

18.JB 1085 1039 IOlPO 
133 131 132 133 


High Low aose Pmr. 


HEX6-HMINIK: 8777.13 
Pnivtoes: 30M81 

58 55 55 5830 

m 21 i 215 218 

57.10 55 55 57 

MM 75 76 7730 

26J0 2580 26.10 266i 

149 146 146 149 

5160 49 4960 52 

06 -134 136 134 

S« .509 511-532 

205 195 197 205 

Sffl 88 88 90 

150 1443 145 150 

97 92 9460 98 


EMI Group 

Fbtn Colonial 
GenlAcddent 
GEC 
GKN 

GtanVIMoam 

GnnadaGp 

GandMH 

GRE 

GieemdbGp 

Gutanm 

GUS 

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bipHaMcco 

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463 475 

6S® 6.15 
507 5.18 
847 865 
681 6.85 

387 113 
4M 702 
483 485 

565 545 

6.18 631 

688 689 
1J4 1J4 


Bat COnn Dot 

BcaFktauroa 

Bead Roma 

Bendton 

CmfltoltoEona 

Edban 

ENI 

Hal 

Ganeiitf AsNc 

IMI 

INA 


11 

1QJD 

1057 

11.22 

4.13 

190 

197 

XU 

119/ 

1151 

1165 

1X13 

1148 

17J6 

17X1 

1117 

855 

BJS 

8X1 

DAO 

102 

180 

189 

6J1 

126 

2X3 

119 

132 

166 

145 

147 

167 

6X2 

5X7 

189 

6.13 

7 JO 

7- 

7.» 

741 

745 

7X8 

745 

7J1 


Hong Kong 

70S 

Bt'&ilMia 2180 
Caltwy PndBc 9 
among Kona 5560 
CKWnisfrod 


DaoHenaBfc 20.90 

FWPndfc 585 

Hong Lwio Dev 12-10 

“--s*— 'Bk 75 

|mr 

HaxtanonLd 
HKCMnoGas 1445 

HKEIeditc 2680 

HK Telecomm v:./m 

Hutchison 


207 
52JS 

SSonHHtlg 8 

Oriental Press 2.01 

Pnari Oriental 044 

SHKPiws. « 

SlmTakHdgs 430 

Stao Lnad Cks 6 

5tb Chtao Port 6.10 

SwtaePocA 46.90 

WtnfHdgs 1885 

Wheetock 1160 


Hngsng: 1MU38 

PrertoBKlli87J7 

580 <30 730 

1960 2055 2245 
730 &10 ILK 

4780 5035 58 

428 1530 17J® 
SO 3430 36J® 
29 3030 3230 
17 17.15 2140 
•430 433 585 

MS 1030 1240 
6260 7060 75J5 
530 6 665 

3980 4240 4660 
1180 1175 USD 
2420 2620 2785 
1240 1328 1445 
2.15 225 285 

178 188 218 

4490 4980 5450 
15.15 16 1730 

1780 1780 19 

U30 IO0 1580 
2530 2868 2930 
134 13B 2JS 

042 050 085 

5475 5935 6635 
365 380 425 

430 6 6 

5.70 580 630 

«50 4160 4680 
15.1 i 16.10 19.15 
9 980 1180 


Laid Sec 

Ubsibj 

- Legal Gaol Grp 
Lloyds TSBGp 
Luanfetfly 

Maria Spencer 
MEPC 

Maany Asset 
NaffandGrid 
Hal Power 
NanfeN 
Neta 

NanridiUnkn 

Oninge 

P&O 

Pearson 


1447 1606 
9.16 937 

387 

8 8.12 
288 280 
980 TIUU 
266 285 

482 486 

666 735 

207 210 

6 638 
583 5Ji5>- 

1302 1220 


Pooler Fowl 

PiudenBal 

RaHrodcGp 

Rank Group 

RaddttCatai 

msexd 

Reed tall 

RcrdoUtaHal 

ReatanHdgi 

Romm 

RTZreg 

RMCGraup 

RoCsRofa# 

RayaBrSad 

RwrfL5anAn 


Jakarta 

Asta W1 

Bkbdl Indon 

BkNegon 

GudongGann 

IndocHient 

lndobx>d 

Indasat 

SampaerraHM 

5emenGiBJ» 

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CoapasBe tariwc 49434 
■ PnitaaK 50538 

2375 2375 2325 2400 

775 725 775 BOO 

775 725 750 M0 

9100 8000 BOO 9250 

2000 1925 ®4S) 2025 

3925 3850 3900 3925 

8825 TOO TOO 1925 

4000 5675 6000 HBD 

3375 3275 3375 3350 

3400 3275 3325 34S0 


Johannesburg 

33 2935 3035 33.15 
282 281 27940 281-40 

250 233 23640 2S2J0 

263 257 257 251» 

174 157 157 JH 

8720 85 87 B7M 

1035 1050 1060 laM 
5338 52 5230 5460 

2425 2425 2435 

139 123 13480 139.® 

313V 3125 313B 3IJB 
4285 89 40-75 43 

1225 11J> 1180 12JB 

gpSA* 99 M60 966B 10120 

fur g 8 V *3 

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LJbSyHdBS 36020 345 345 362 

LSSyUfe 138 1313SB 133 IfMO 

LMSstm! 1W0 1SS0 16 14» 

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1780 17 17.10 18.10 

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"S'"™* 34 34 34 3525 

6360 6130 &2 6A4D 

229 223 2M 

T^erOris 7820 74 75 7860 


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Sduodoro 
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Secufeor 
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Thranw Wirier 

31 Group 

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292 

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198 

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162 

160 

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192 

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7.15 

650 

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9-74 

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199 

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862 

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Cola Banco % 
S Paolo Tattoo 
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Bee Mob Com 
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Power Cop 

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895 940 945 
1330 1360 1450 
540 565 5.95 

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Piyen 

Rtpao) 

SwB o n aE l a r : 
Taboadera 
Tetefanlcn 
UnfenFowH 
VOtanc COaenl 


ManHa 

ANAB , 

mSu^Ea 

Metro Bonk 
Petan 

PCIBdflk _ 
ipNlLengDhf 
SooMigudB 
SM Prime Hdg 

Mexico 

AltaA 

BflmcdB 

CenaCPO 

dlniC . 

EmBMadama 

GpoCcnaAl 

GeoFBcopnr 

tofillltaiw . 

jStaQntAler 

TetarteaCPO 

TelMuL 


Bobatadeenua 
PmAw; 59942 

24450 23280 36140 
1770. 1795 1820 
58SB 5M0 «Ea 
8230 8330 8420 

4220 4315 4470 

g n « 
ill 

6730 6800 7120 
1745 n« 1795 
tm 2408 2475 

J .I s 

4150 4220 4350 

ys n is§ 


PSC tadm US261 
pRftaON 192897 


Si 


OridoAaaAH 


5145 4965 
7180 7000 
1734 TA60 
28200 27450 
4675 4525 
9350 9050 
10360 10145 
6250 6050 
39100 38050 
17450 16900 
2575 2515 
6060 5065 
8465 8270 
13400 13005 
1435 1397 
1040 1012 

2758 2670 
5125 4905 
15380 15100 
34500 23900 
13900 13520 
11560 11210 
6915 6705 


5100 $200 
7020 7150 
1708 1689 

27503 28300 
4570 4718 
9215 9385 
10290 10460 
6170 6300 
38800 39150 
17T10 17570 
2565 2578 
5925 6070 
8300 8370 
13150 13445 
1419 1446 
1040 1029 
2680 2750 

5070 5030 

15220 1545 
24000 2&OI3 
13900 14050 
11300 11605 
6790 6970 


Peugeot CH 

PfenuN-PiM 

Proraode a 

RasouH 

Rood 

Rlt-PautancA 
5a noA 
Schneider 
5EB 

SG5 Thomson 
St e Generate 
Sodexho 
St Gabon 
Suez (CM 
Suez Lyon Eon 


High Law 

3om 

Prav. 


Hlgb 

LOW 

CtoM 

Prav. 

779 

7 46 

750 

783 

ASS A 

9X50 

92 

9150 

96 

2636 

2504 

7600 

2688 

AsdDamcn 

24050 

234 237.50 

743 

2009 

1910 

1936 

2019 

Astra A 

12330 11950 12260 

175 

173 

165 

169 172-50 

Altos Copco A 

239 233 HI 23X50 

243 

1627 

ISM) 

1W) 

I6XO1 

ArioBv 

308 

300 301.50 3T0JD 

25090 

74) 

746 

256 

BedrobxB 

659 

635 

650 

665 

514 

488 

493 

514 

Ericsson B 

372 25X50 

357 

374 

35620 

342 34640 36240 

henries B 

306 

298 

302 306-50 

713 

682 

M 

724 

taceattaeA 

680 

671 

675 

694 

474 

451 

467 49190 

Investor B 

382 

366 371 JO 

383 

914 

873 

880 

920 

M0D0B 

265 

MS 

2S9 

271 

2900 

7785 

7810 

7921 

Nordbanken 

251 JO 

246 

252 25150 

887 

BS5 

876 

884 

PharmAJpiohn 

258 

247 

256 

261 

14X5 

1X85 

14X5 

1X95 

Sandv&B 

247 

238 

215 

2® 


m 599 600 634 
668 654 664 672 
180 T73 17340 17880 
653 636 637 654 
114 10835 11050 11650 
415 3BS 40340 401 


SSoPoulo 


SamtaB 

SCAB 

S-E Sunken A 
Skamfla Fats 
SkanskaB 
SKFB 

SparbantenA 
Shea A 
Sv Handds A 
VohoB 


212 213 218 

170 174 17850 

8750 8850 8850 

3S2 36050 374 

296 299 30350 

218 31250 216 

171 17450 176 

117 11750 134 

233 235 242 

213 216 222 


IwtattriatobdeicMXLTl 

Parian: 351 14* 

L95 45W 45U 4645 

•45 VPA 29W » 

180 39M 39.65 3955 
5* 45.10 4516 4S» 

L70 1848 IBM 1860 
cn» 32 3255 32* 
JO 4490 45JO 4610 
3Vi 43,10 4110 4110 
m » 2DVi 20J6 
'JO 19 19H 1950 

W .4216 4216 45 

L10 4245 4240 4345 
291* 29 JO 3005 
105 8?a 9J3S 955 

no 72 7340 7370 


OBXtadcC 73244 
PmtaBE 74732 

140 136 138 141 


Brn d escoPM 
Brahma Pfd 
CiraiaPfd 
CESPPfd 

FcmA 

EMrabras 
BoubancoPU 
LK)M Savldas 

P^raEraPta 

PauMoUn 

Ski NndHKd 

SauraCiuz 

TetabrasPfd 

TdeaHg 

Tstei 

TetespPM 

ItaBmco 

IMralnoaPM 

CVRD Pfd 


1130 1239 

765.00 80650 
5631 6897 

10051 10699 
1759 1759 
59810 65959 

635.00 68800 

470.00 50000 
38000 40700 
29900 32200 
18500 19100 
413D 4250 

9.90 1810 
14690 16100 
17731 19080 
16500 179 JO 
38600 41430 
4860 4430 
11O0 1132 
2530 2730 


commit tadae 60406 
Pnriom 6*132 

69700 65800 67000 65800 


s 7 dne 7 “"SBEIiSS 


Amcor 

ANZBktag 

BHP 

Bond 

Brambles kid. 
CBA 

CCAmaH 

CchHMfer 

CbmolCD 

C5R 

FoGtorsBcaw 
Goortoni FU 
HJAortraSa 
Land Lease 
MIMHdn 
Nat Aurt Baric 
Nat Muhnri Hdg 
News Cap 


755 740 

1894 TO 
15 14 

as AM 
29 2730 
1702 1631 
1235 1130 
730 656 
649 6 

538 610 

383 377 
232 333 

1342 113® 
3340 31 

139 147 

2101 2810 
247 230 

701 686 


7 JO 7.93 

1041 1086 
14 1408 
4.12 4.15 

2731 2700 
1644 1683 
1185 1238 
7 7.14 

6 648 

615 £32 
282 379 

237 232 

1155 1231 
31.19 3332 
148 136 

2875 2137 
335 343 

690 696 


HISTORY, THEY SAY, 

HAS A GHARMING WAY OF REPEATING ITSELF. 

Royalty, writers and luminaries of every hue and 
description have graced the historic Hotel Le Royal, 
Phnom Penh, for much of the early part of this 
century. Names like Somerset Maugham and 
Jacqueline Kennedy who will forever be immortalised 
in our suites. Now lovingrly restored. Hotel Le 
Royal, once again, reclaims its rightful pride 
of place iAi amongst the 

world's great hotels. As of 

old, offering respite for 

the weary hotel le royal. traveller, a 

haven for the miMfui mri mi b&^iwunc cm wr. discerning 
modern-day * raffles interkational hdtkl businessman 


of place i 1± amongst the 

world's great hotels. As of 

old, offering respite for 

the weary hotel le royal. traveller, a 

haven, for the nsnausBEDcacAiHL rmfdumi du ub 7. discerning* 

modern-day * raffles international hdtkl businessman 

and a destination for romantics in quest of history and 
charm. Hotel Le Royal, a hotel of timeless civilised 
style where history has a knack for repeating itself. 

For rosanallang fax - (853) 23-723-571 ar [65) 3394713, c-mn4 rafn«l*chctaeibw»ndcaml.h«x 
irtwwwrjfll»ia*n/ril/ A Member ol the Srn«l Liwf Hoieb af if* Wortl 


A RAFFLES INTERNATIONAL HOTEL 


219 ■ 213 
27 26 

3230 3033 
111 111 
43 42 

425 397 

4113S 402 

JS2 347 
183 18130 
653 139 

53230 510 

152 145 

13650 1» 

N.T. N.T. 
56 55 


216 91730 
27 273S 
33 

118 119 

43 43 

409 430 

4W 417 
2S0 252 

183 182 

M2 665 
519 533 

152 ISO 
135 136 

N.T. 410 
55 52 


Daewoo Hem 
HMndalEi 


■■MatarsH 

KaRoBPwrte 
Korea EzdiBk 
l£SataaH 
Pahang tn»B 
Saaswtg Dfrtay 
Smesui wElec 
aiMwiliijri 

SKTatacaiiH 


6310 5850 5880 5850 

17600 14800 17M0 17100 
BO® 8948 8040 7450 
18900 17800 18200 18700 
5120 4800 4850 MM 

27200 24500 24000 26300 
5Sm 53000 55500 55500 
4M3J 40300 43000 4350B 
61500 58600 <1500 60200 
9160 7760 8160 7560 
435000 405000 415000 440000 


Poaffc Durriop 
FemeerWl 
Pub Braodca5l 
Rio Tirio _ 

Si Gauge Bank 
WMC 


13 

ms 

12J5 

U 

13 

135) 

99 JO 

95 

95 

115 

3 

3XS 

7U0 

69 

69 JD 

28150 257 JO 

266 

X4B 

X2S 

*25 

142 

137 

140 

900 

820 

845 

48 

4L50 

42 

6JB 

6.10 

6.10 


Balsa tadwc 49134 
PnataM 9299.19 

624 0 6740 7180 
2320 2325 2340 
3610 3610 3885 

15.16 1534 MS 
3890 3 m 40^ 
5730 5730 61 JJ 

! 116 117 131 
3230 3330 3445 
31» 37J9 4110 
14100 14840 15170 

19.16 19.16 2845 


Aland AMh 

AXO-UAP 

Baoariro 

BlC 

BNP 

CamriPbs 

Gamribur 

Oujno 

CCF 
Cetataa 
arisflon Otar 
oAOaria Fran 
SedSAakata 
Daoae 


CAG48; 2156X7 
Prertws295M4 
1095 1049 1070 1119 
319 310 314S0 31890 

948 905 920 9J2 

793 760 753 102 

BSJ0 396 39860 40830 
790 750 751 781 

415 38110 397.10 41830 
313 2P660 301 JO 32810 
1058 1027 1045 1036 


France TeSeeom 


3335 

3270 

3284 

3381 

33740 

329 

335 

338 

35X80 341 JD 351 JD 

362 

640 

423 

635 

647 

677 

631 

650 

£97 

593 

1311 

909 

576 

isn 

870 

iffi 

887 

595 

1311 

905 

775 

746 

753 

779 

065 

840 

8® 

865 

8 

7X5 

7X5 

7.90 

1X5 

SJ0 

155 

165 


Singapore 

Ada Poc Brew 

QsebosPK 

GRyDMtfc 

gsrSF 1 

DBS Laid 

Fnaer&Nam 

HKLmd* 

JardMataron* 

JardStifeeglc* 

KeppalA 

KoppdBank 

KeppriFeta 

KuppelLdnd 


Milan ““ T «SSgS! 

AHeono Asslc 15920 15475 15710 15850 


Local 
LVMH 
MtamooB 
PtoBmA 
Pranod (Scant 


402 39130 396 40040 

670 641 668 665 

404 382 39230 404 

US 1091 1091 1142 

»fS tefiO 2002 2201 
1064 1012 1034 1108 
353 34030 34120 35670 
46130 44550 451 46330 

2B6 27630 27650 287 


OSUirioaBkF 
PrafcanrHdgs 
S erobrnwrag 
Stag Air faciT 

Stag Land 

StagPronF 
Stag Tedi tad 
StagTefeconMi 
Tat Lao Bo* 
U)d Iwtooriol 

JMIKeoBkF 

WtagToiHdgi 

•tmusnouss. 


Stmts Tloes; 164987 
PmtoBel731.il 

4X0 AM 4X2 
487 4J8 436 

6M 7 JO 735 
680 685 730 

0X6 894 894 

1330 1150 16 

238 170 179 

7 JO 7 JO 810 
235 245 233 

115 170 170 

138 330 360 

585 £15 568 

263 274 2X0 

624 430 432 

234 265 286 

9 JO 930 9JD 
530 173 580 

434 434 488 

4.96 130 535 

1810 1810 1080 
490 494 118 

2890 21 2130 

2 189 134 

831 232 244 

240 245 263 

880 8X1 U6 
940 955 1810 

239 240 233 


Woo SwePd 
Wool — ilia 


Taipei 


179 362 3J0 374 

415 ASM *87 4M 
870 82$ 825 864 

1932 19.15 19.15 2822 
880 137 842 839 
£91 141 S41 586 

9 866 878 882 

1288 1232 1260 12J5 
*85 430 477 480 


Stock MraMtaritt 782581 
PlftltK! 749147 


OrflwyLdelffi 131 
QMriqHM tt 101 
OdoOTungBk 7030 
CNnc Dfluriprat 92 
Chirac 5ted » 

FW Bunk 103 
Fotoom Ptasfc 54 
HuoNunBk lttj 
Ina Comm Bk 1830 
NooYaPtaste. » 
Sirin Kong Ufa 
TnhwnSanl 1 MM 
Taung 32.70 

UMModBk 71 
HMWtoddCWn 50 


12530 131 

95 10050 
66 7030 
85 9130 

2440 W 

96 103 

52 5230 
98 106 

56 58 

54 5450 

S B7 
125 

3180 3180 
47.91 71 

55 57 


Stockholm 

AGAB 11* 107 11130 11530 


Tokyo 


Atari Own 
AsririGkuH 
Bk Tokyo Mflsn 
BtYOfe*QDW_ 
Bridpertawd 
Gnm | 
CbubuEtacI 
QMrrtra 

DOdH 

DaHdiittng 
PataoBaafcd 


HIU22& 17151 JS 
PrwtaBe 17(8761 
1850 1010 1010 1050 
,585 585 586 

3520 35 30 Iwi 
«K 473 6E! TO 

SK 560 $65 554 

1840 1730 1730 IMO 
& & & 
^ a x ^ 

TW W» 1910 1900 
2650 2SSQ 290 2630 

1090 lUo 1?M 1100 
500 477 482 500 

1170 1110 1110 1170 


The Trib Index wo* *o# mo mi N»7«»im.. 

Jan. J. 1932= iOO Loval Change % Chang# fear to data 

% charge 

World Index 175.46 -1.04 -C.59 +17.65 

Roglona bidBua 

A^a/Padfte 111.00 -1.43 -1^7 -10.07 

Europe 192.14 -1.67 -0.86 +19.19 

N. America 210.91 40.02 +0.01 +3026 

S. America 161.06 -0.78 -0.43 +5823 

Industrial Indexes 

Capital goods 222.13 -127 -0.61 +29.96 j 

Consumer goods 197.02 -039 -020 +22.05 I 

Energy 20632 -135 -039 +20.86 ' 

Finance 12637 -1.56 -122 +6.68 ' 

MisceBaneous 176.06 -3.91 -2.17 +833 ; 

Raw Materials 18136 +035 +0.47 +3.58 

Service ~ 170.01 -0.84 -0.49 +2331 

Umies 172.01 +2.05 +121 +1930 

77m tntamatkxri Herald Tribune Workt Stock Index O tracks rha U.5. rUlarvBkms of 
280 Infemmlonaty imastabb stocks Inm 25 countries. For mom inform atio n, a faw 
Crnktar it evaaaUe by writkig »o 77» Tie tatta*. W Avenue Ctiarias rta Goufe. 

92521 NeuHty Codex. France. Compiled by Bloomberg Nows. 


DOM Sec 

DD1 

Denso 

EaEtJoranRy 
Ehoi 
Fonuc 
FOB Balk 
Fofi Photo 


Hrairln Bflnlnr 

noiiaa mexor 

IBJ 

IHI 

Itochu 

Ito-VWadO 

JAL 

Japan Tobacco 

Jusea 

Knfen 

KomaEtoc 

Kao 

KnmaJHvy 
- Kaw Stool 

KtaklMppRy 

Kirin Brewery 

Kobe Steel 

Komatsu 

Kubota 

Kyocera 

Kyushu Bee 

LTC8 

ManibcnJ 

Maul 

Matsu Comni 

Matsu Elec tad 

MOmElecWk 

MBsubWri 

MBsubistriCh 

AttiutristriEl 

MUsubfsblEsl 

4117, , hi * to— 

mnsnoam nwj 
MUsubtaMMI 
Mitsubishi Tr 
MSsul 

Mitsui Fudosn 
MBsulTiwt 
AAuratattfp 
NEC 

HtkoSec 

Wkon 

il,, 

wshchoo 

MppEuress 


wpaaStad 
Nun Motor 
NKK 

NomoroSec 

NTT 1 

NTT Data 1 

Of Paper 
Osaka Gas 
Ricoh 

Rohm 1 

SataxnBk 
Sankpa 
Sam Bank 

Sanyo Elec 

Kwfwr 

Setou Rwy 
SekkiriChan 
Saklsul House 
Seven- Eleven 
Shop 

Shfc*u B Pwr 

Shtadzu 

5hta-etauQi 

Sitatao 

SMzuAa Bk 

Sallbank 

Sony 1 

SmBottQ 
SadumBk 
Sural Chon 
SuraBomo Elec 
SualMehri 
5 urnri Trust 
Tirislw Ptmn 
TokataGhrm 
TDK 1 

Tohoku B Prw 
TokdBaok 
Takio Marine 
Tokyo El Pwr 
Tokyo ElaCtaM 
Tokyo Gas 
TokyuQxp. 

TatKXi 

TappanPiM 
Twwtad 
Tatatoa 
Tostan 
Toyo Trust 
Toyota Motor 
YmiHlHTWfti 
rezNXtlrz MUD 


Lota Oom Prav. 

736 740 750 

4670O 4720a 4780a 
2800 2800 2930 
5820a 5>50a 5S40a 
1890 1890 1930 

4960 4970 Sm 

1190 1190 1240 

4838 4850 5030 

1*50 1450 1460 

1148 1150 1180 

1040 1050 1050 

4200 4210 4380 

1990 1290 1360 
265 266 206 

417 417 435 

6310 £4843 6490 

410 411 422 

e*So 9560a Wto 
2750 2770 2740 

568 578 579 

2060 2000 2070 

1780 1790 1780 

337 1® 357 

224 234 

679 678 

1010 1010 1070 

— 139 147 

696 718 

424 418 

7480 7480 7700 

rm 1920 i9so 
459 465 485 

370 379 395 

2090 2090 2150 

4080 4140 4080 

2220 2220 2250 

1220 1220 1230 
1120 1120 1130 

255 264 

437 456 

1640 lfTB 1700 
“ 667 674 

534 564 

1690 1700 1780 

971 973 987 

1510 1510 1590 

468 469 483 

0 a 5540 

1440 1440 1460 

17® 17® 17® 

480 480 496 

11400 11500 11600 

— 671 690 

497 


173 

1530 1560 1600 

1080b 1080b 1130b 
5930b 5980b 5950b 
627 
280 

1660 1670 1710 

13200 13300 13*8 
SX 550 
4050 4110 41® 

1390 1300 13fi8 

413 413 424 

8330 8350 B m 

sm mi 4800 


1020 1030 10X 

9150 9250 9350 

1010 100W 1020 

1880 1910 1880 

555 555 583 

31® 3140 3180 

1700 17X 1770 

1270 1270 1280 

MS 3900 3960 

107TO 10700 11300 

870 881 907 

1540 1558 16141 

416 422 442 

1660 1680 1730 

273 290 

1050 16M 1120 

3100 3160 3360 

3490 35<» 3590 

10400 10600 10600 

1930 1950 1930 

810 820 841 

1340 1360 1390 

2240 2250 2260 

7500 7560 7580 

274 275 
SB 

940 M2 966 

1560 1580 1630 

700 TO 699 

577 577 593 

1820 1830 1860 

.960 964 1000 

3660 3660 380B 

3130 3160 321ft 


OfnOcddPd 

Cdn Podfic 

Conrinco 

Datasco 

Deratar 

DarotaioA 

Du Pont CdaA 

EdpcrCmscoa 

EuroNevMng 

FditaHrri 

rnh-nnhelWnft 

rcKzmDiioge 

HOdierOnlA 
Franca Nevada 
Guff Cda Res 
Imperial Oi 
Inca 

IP L Energy 
LakflawB 
Laewen Group 

MoaidlBldl 
Magna tah A 
Mdhanax 
Moore 

Newbridge Net 

Namndalnc 

Norcen Enemy 

N them Telecom 

Nova 

Onor . 

PuncdnPefkq 

MreCda 

Placer Dome 

PnajPaUni 

Potash Sorts 

RenalsaniCB 

RtoAJgom 

Rogers Canid B 

Sea arm Co 

ShaCda A 

Suncor 

TOtomon Eay 

TrckB 

Tetestoba 

THUS 

Thomson 

TarDmBank 

TransaRa 

TransCda Pipe 

TitanS. FM 

TrlKcHabn 

TVXGaU 

Westcoart Eny 

Weston 


Hife Law Oho Prav. 

3714 3665 36X0 3740 
42-80 42J05 4245 43U 

32 3140 3140 3110 
2660 2645 36J0 3630 
Till 1145 11M 11 

29Si 28.70 2914 

3414 34 3416 34H 

2614 25X0 2614 26M 

V* 2614 27.15 26M 

370 364 365 358 

2*80 24.15 2414 2110 

2214 2214 7Tm 2260 

36.95 3635 3614 3 

1240 1235 12* 1 

87.15 B*jDS 8690 87J0 
3230 3130 31X5 3214 

5414 54.15 5430 54.90 
» »« 3055 2085 

35 3414 34.70 3110 

1935 1914 1935 19X5 

HS 97.W 98 9914 

12.20 11X5 12.15 1230 
2190 2110 25X0 2630 
jib w 19 8214 

W4 2635 2560 27 

33 3314 33*0 

1J4.IU 131 131 JD 13514 
11J0 1135 11J0 1114 

37V4 . 36 36K 38 

241* 24H, 2460 24.90 

27X5 2745 2760 2X0S 
26.90 26JO 26V. 7630 
13 1330 1345 
118 1I9J0 121 W 
3170 33X5 3155 34 

2865 27Vi 27X0 2814 

2170 2105 2105 2314 

Slta ®X0 5055 5114 

2714 26M 27U 27 

49 4945 5014 

_ . 49 50-15 51 

2714 2630 2695 2735 
50 4965 491* 5030 

2045 27X0 281* 2865 

34X5 34V4 34JO 3414 

SIVJ .50 SOU 51 
19ta 1890 19 1930 

2695 2AA5 24M 27.10 
76X5 74lt 7460 77W 

37.15 36ta 3695 37 

745 730 730 730 

2185 2814 91 1X5 28N 
1026S 99 10265 106 


Vienna 

Boelrier-Uddeh 
QwBtansIPM 
EA -General 
EVN 

FtotfiatanWtan 

OMV 

Oert Etakblz 
VASkrid 
VATedi 
Wlanerberg Bau 


ATX kdat I374J9 
PnvtaaraMlUl 

1030 1002 1004 1035 
739 724 734 764 

31® 304945 3050 3131 

147S 1425 14® 1485 

51030 496.45 503 51350 

1880 1832183150 1B91 

920X0 90950 920 925 

58990 562 545 589.75 

24082311.502311.90 2416 
25222459.10 2670 2540 


Wellington rcsEJiMec 2*0934 

PrWoesi Z63S48 
AirNZeahlB 399 198 198 199 

Briertybrrl 136 135 135 137 

Carter Hal ud 33} 345 347 154 

FtetehO-BUg 540 532 5JS S 

gew. Q §ny 7.95 7JU 7M 7X9 

Retell Q Ford 1X2 1X1 1X2 1X2 

JJS X1 5 117 I’ 7 

Lnn Kalian 4X3 4 *jq ros 

THeaxn HZ 8J5 846 834 8J0 

WBion Horton 1160 1145 1160 1140 


§41 Zurich 

1 390 

TOO AflBB 

27S A^KCOB 

S fllusubwR 


AMR 



Toronto 

AbHriCOas. 
Afearta Energy 
Alcan Alum 
AodenmENri 
DkMantacri 
BkNoaoScaAr 


Btochem Pbwoi 


CdnNaliRal 
Cdn Nat Res 


TSE IndastrjgtK 7D4175 
PiMtoR: 7162J6 

2265 22U 2240 22X5 
33 3230 33 

«5X5 44X5 4105 
16.15 1170 1115 
6160 59X0 aOM 
67 65 6565 « w 

32M U90 
4QJB 40.15 4IH5 
38 37 JO 37X0 
40U 391* 3914 j»4s 
2835 27X0 27X5 SS 
56X5 55 55H 5640 

4m 4035 40N 4L® 
_ 77 74X5 76 7H30 

4140 Ai 41.10 4140 


SPtilM63|i7J3 
Pnvkon: 37ML46 

1995 1931 1950 2008 
5® 515 528 549 

1430 1378 1391 1420 
2760 2660 2725 ^ 
851 851 B51 865 

064 TOO 2310 2365 
2397 2315 2394 2370 
1260 1206 1220 1270 
.JSf 147 JO 15TJ5 
J1S9 1126 1139 1169 
21WS 20175 210 J1J 

538 535 g? car 

2“ ^2 6960 <975 
4189 4000 4000 4050 
UN} 12BI 1300 1385 
548 565 565 568 

2110 2044 2Q54 2138 
2220 22*4 231B 
l«|H TO 189 193 

1840 1830 1845 1880 
882 855 m m 

1980 1875 1890 2000 
344 335 343 343 

13990 12255 12310 12705 
405J0 395 390X0 409 JO 

PW 7630 U75 1725 


5MHB 
Suffer R 
Swiss Reins R 
SAIr Group R 
UBSB 
WntottiurR 
Zurich AssorR 


2710 

2660 

2710 

2760 

865 

833 

844 

876 

1160 

1090 

1144 

1177 

2199 

2153 

2153 

2203 

1960 

1904 

1914 

1972 

1655 

1616 

MZ3 

1672 

1565 

1483 

1517 

1575 

605 

589 

593 

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PAC 




PAGE 18 


INTERNATIONAL HERALD TRIBUNE, FRIDAY OCTOBER 24, 1997 


ASIA'S CURRENCY CRISIS / Beijing Watches Warily 



Traders in Hong Kong watching screens during Thursday's tumultuous session. 


China Telecom Takes Beating 

Phone Firm Drops 9°/o in First Hong Kong Trading 


C&apM U? Our Swff From DUpateka 

HONG KONG — Amid a rout that 
hammered China-backed stocks, China Tele- 
com (Hong Kong) Ltd., the territory’s largest 
new share listing, fell 9 percent in its first 
trading day in Hong Kong on Thursday. 

An arm of the Ministry of Posts and Tele- 
communications, China Telecom fell 1.13 
Hong Kong dollars (14.5 cents), to 10.55 
dollars, after an 8.2 percent drop in the price of 
its American depositary receipt shares, which 
began trading in New York on Wednesday. 

“What has happened today is going to 
force the Chinese government to slow down 
its plans” for privatization, said Haddon Zia, 
a manager of China stocks at Prudential Port- 
folio Managers Asia. 

Even China’s cut in interest rates, an- 
nounced in a bid to shore up the nation’s 
stocks just hours before China Telecom began 
trading, did not help. 

From the opening bell, it was apparent that 
the Chinese mobile-phone company, which 
was seen by many as a sure money-maker, 
was going to come up short. 

Edmund Harriss. a money manager at 
Guinness Flight Hambro Asset Management 
in London, said: “China Telecom was being 
priced, valued and promoted on the basis that 
China sentiment was alive and well.” 


Though the fall in China shar es in general 
hurt China Telecom, investors also had some 
doubts about the company. Mr. Harriss said, 
and die price, too, was considered to be high. 

In the provinces where China Telecom 
operates, growth appears to be peaking, Mr. 
Harriss said, and new subscribers are prob- 
ably going to produce less revenue and fewer 
profits. 

The firm’s executives also failed to re- 
assure investors about the amount of profits 
that were tied to one-year “interconnection” 
agreements with the Ministry of Posts and 
Telecommunications, and revenue-sharing 
between die two. 

‘ ’These are subject to change,” Mr. Harriss 
said, and China Telecom could not tell in- 
vestors that the interconnection agreements 
“would be struck on a commercially ac- 
ceptable basis.” 

Other analysts were more optimistic. 

*' The performance was acceptable la such a 
weak market,” said Ricky Tam, research 
manager at Delta Asia Securities. 

Of the issue, 144.02 milli on shares were 
offered to the public in Hong Kong, while 
370.59 million were offered for an inter- 
national placement outside the United States, 
Canada and Asia. ' (Bloomberg, Reuters) 



Asian Financial Clwos 

China May Draw the Wrong Lessons From the Debacle, Analysts Fear 


By Steven Mnfson 

Htotoffiow Fast Service 


BEUING — The stock market and currency 
chaos is being watched in Beijing with growing 
anxiety, Chinese officials said Thursday. 

, Though China’s currency is not freely con- 
vertible and is generally thought to be fairly 
valued, the spreading Asian financial debacle will 
probably make Chinese policymakers more cau- 
tious. 

“In the wake of the Southeast Asian crisis, 
we’re very cautious,” said Chen Yuan, deputy 
governor of the People’s Bank of China, the 
country’s central bank. 

The widening currency crisis makes it unlikely 
that China will make its own currency, the yuan, 
convertible any time soon. “We don’t have a 
timetable,” Mr. Chen said. 

A People's Bank of China official on Tuesday 
estimated that the Hong Kong market was worth 
more than $1 trillion. If so, this week’s slide in 
stock prices on the Hong Kong exchange has 
wiped out about $240 billion in equity values. 

But China said it had confidence that Hong- 
Kong would be able handle its own affairs, and 
that it would not intervene with cash to prop up the 
market. 

“Administrative departments will not inter- 
vene in the operation of Hong Kong’s stock 
market,” ShenGuofang, a spokesman for China’s 
Foreign Ministry, told Reuters. 

Joe Zhang, an analyst at Credit Lyonnais in 
Hong Kong, said that the Hong Kong gov- 
ernment would be able to defend the current 
fixed exchange rate despite heavy pressure 


from currency traders and 
• “I’m still a very firm believer that the Hong 
Kong dollar will be safe over die next two years at 
least/* Mr. Zhang said. “Neither Hong Kong nor 
Beijing will bend under pressure and they have 


the resources. - 

Those resources — more than $80 billion ot 
foreign exchange reserves in Hong Kong and 
another $130 billion held by Beijing — dwarf 
other countries* reserves. China holds more than 
$50 billion in U.S- Treasury bills, a central bank 
official.said this week. _ , - ■ 

“If you allow the peg to go, capital flight will 
ensue tomorrow,” Mr. Zhang said, explaining 
why the Hong Kong monetary authority would 
prop up the exchange rate. “And then the property 
price tumbles,” he added. “Then you have 
massive defaults on mortgages and then collapse 
of the hank* and then the collapse of the econ- 
omy.” . 

The turmoil Thursday sparked a small but 
discernible scramble to dump the local currency, 
die Hoag Kong dollar, as investors began con- 
verting their money in die U.S. dollar for safety. 
Some investment counselors said they were urg- 
ing their clients to switch to the U.S. dollar until 
die current crisis eases. 

Mr. ("’hen, the central banker, said that since the 
Southeast Asian currency collapse, China itself 
had “lost some competitiveness in terms of ex- 
ports.’’ But be noted that China was still ru nning 
a trade surplus. 


Chirm unrfiftri and adjusted itspreviously dual 
. . The Chinese cur- 


exchange rate on Jan. 1, 1994. 

rency has been considered undervalued since 
then, but — at about 8.28 yuan to the dollar — it 


now looks about right to many business 

ecutives. . 

China’s ambitious plans to sell shares of stock 
in stale-owned enterprises might also have to be 
spread out or slowed down, say investment 

hankers, lawyers and analysts. • - 

Indeed one factor contributing to lhe oowa- 
ward pressure in Hong Kong was the pocsr 

performance by a Chinese comf»ny thjR 

offered shares for the first time on the Hong 
Kong exchange. Earlier this yW almost any 
company with political or corporate eonueg- 
tionsto mainland China could sell shETW A 
Hong Kong at towering premiums and fi£ 
quently finished their first daW_of trading * 
two or three tiroes the initial offering price. . 

But this week’s initial public offering by China 
Telecom fell flatiolosing Thwsdayat 1055 Hone 
Kong dollars, down 1.33 dottare from its 1 L68- 
dollar offering price. 

“What's going on in Southeast Asia ts start-, 
ing to taint what’s going on her©,” said Denis 
Fred Simon, director of the China strategy 
group of Andersen Consulting, in- Beijing. 
“China is counting on international capital to 
help with enterprise reform and if that capital 
starts to go elsewhere that will create some real 

^Mrfzhang, the Credit Lyonnais banker, said 
that one negative side effect in China of the .Asian 
financial crisis could be psychological. “Beijing 
could become more cautious and that would be 
undesirable,” he said ‘‘The government needs 
more courage to push forward on financial, trade 

and state sector reform. The crisis wiB only make 
it more hesitant.” 



t . . * / •- i 


South Korean Stocks Reel as Overseas Investors Bail Out 


Reuters 

SEOUL — Sooth Korea’s stock market is reding 
under a persistent pallout by overseas investors 
who sold a net 60.8 billion won ($66 million) worth 
of shares Thursday, the Securities Supervisory 
Board said. 

Non-Korean investors have sold a net 535.8 
billion won worth of shares so far this month, 
mainly blue-chip stocks. 

Analysts and brokers said there was little chance 
of the sell-off ending soon because of South 
Korea’s uncertain economic situation, compoun- 
ded by financial problems in elsewhere in Asia. - 

The government’s move Wednesday to put Kia 
Motors Corp. and Asia Motors Co. into coot 
receivership would not reverse foreigners’ inclin- 


ation to sell, they said. 

The composite stock price index closed Thurs- 
day at 604.06, up 2.74 points, after a day of 
volatility, with heavy foreign selling that under- 
mined domestic institutional support. At one point, . 
domestic buying had pushed the indexup more than 
13points. 

Oh Wednesday, die index jumped 6.08 percent, 
the biggest one-day gain in the history of the Korea 
Stock Exchange, on thededsion to put die Kia units 
into receivership. 

But there have been no signs ofimprovemeotin 
overseas investor sentiment, which is seen as a key 
to the maker * recovery. 

Analysts said the South Korean market was 
suffering from a spillover of the sharp declines in 


other Asian markets, particularly the 10.4 percent 
plunge of the Hong Kong market Thursday. 

“Korea is not an isolated incident, but rant of an 
Asian phenomenon-” said Kang Chang Hee, man- 
aging director at Daewoo Securities. 

An analyst at Schraders Securities said. “For- 
eign funds will continue to flee Asian markets, and 
it will hurt South Korea as well.” 

A volatile currency market is also working 
against die stock market, with the South Korean 
won apparently poised to fall to record lows. 

The won closed Thursday at 921 to the U.S. 
dollar, down 0.6 percent. “The won, even at this 
level of around 920, is seen as overvalued by many 
foreign investors.” said Kwon Oh Soon, senior 
analyst at Hannuri Investment & Securities. 


RISK: Crisis Threatens Economic Hardship for Area but Should Not Disrupt World Financial System 


BRIEFLY 


Continued from Page 1 


markets from Japan to Aus- 
tralia. The Hong Kong stock 
index fell 1 6 percent in just 48 
bouts. 

In Europe, stock-exchange 
indexes also dropped, for two 
reasons. Some investors fear 
the Asian crisis will affect 
European exports and are un- 
loading the shares of compa- 
nies that either export to East 
Asia or have big investments 
there. Also, the psychological 
impact of the sell-off across 
Asia has had a contagious ef- 
fect in Europe, 

Finance officials around 
the world are increasingly 
concerned about the Asian 
crisis, which they say is being 
driven mainly by a loss of 
investor confidence in Thai- 
land and by a negative mood 


swing in general market sen- 
timent that tends to lump to- 
gether all of the eoooomies in 
toe region, be they well man- 


aged or poorly managed. 
On Tburedi 


lursday, France’s fi- 
nance minister, Dominique 
Strauss-Kahn, said the IMF 
should become involved in 
calming the crisis. “The risk 
of instability is very great,” 
he said. This point of view 
was echoed by the newspaper 
Le Monde, which earned a 
front-page article Thursday 
warning that the crash of 
Asian markets could threaten 


economic growth in Europe 
rorid n- 


and destabilize the world 
nancial system. 

A senior international fi- 
nancial official, speaking an 
condition that he not be 
named, on Thursday termed 
the Asian market crisis “a 


significant and yet unwarran- 
ted contagion” that stemmed 
from (he Thai crisis and 
would continue “until in- 
vestors become convinced 
that the countries hardest hit 
are doing whal needs to be 
done to reform their econo- 
mies.” 

Andrew Frcris, an econo- 
mist at the Hong Kong branch 
of Bank of America, said that 
“what is really driving mar- 
ket sentiment is an inability to 
differentiate between prob- 
lems in different countries.” 
This, said Mr. Frcris, meant 
tbat “you have an aggreg- 
ation of tiie Thai problem into 
a broader pan-Asian problem, 
and in Hong Kong a disbelief 
that a pegged currency can 
actually stay pegged.” 

Mr. Frcris and some other 
economists predicted that the 


Hong Kong authorities would 
keep interest rates high as a 
way of attracting funds into 
Hong Kong to prop up the 
currency. But he also admit- 
ted that high interest rates in 
Hong Kong and elsewhere 
could have “a definite impact 
on consumption and on eco- 
nomic growth” in the re- 
gion. 

He also pointed out that 
despite the assurances given 
by Hong Kong officials that 
they would defend the Hong 
Kong dollar’s link to the U.S. 
dollar “this is now a political 
and not an economic decision 
because if they lei the peg go 
now it would make rhina 
look bad in the eyes of the 
world.” 

Mr. Freds said it was 
“hard to imagine the Chinese 
throwing the peg out the win- 


dow without a fight after 14 
years of it having been suc- 
cessfully pegged by the Brit- 
ish.” 

Mr. Severino said that 
among the reasons fra 1 the 
new phase in the crisis was 
the fact “that some Asian 
countries under fire have not 
been successful or fast 
enough in fixing their prob- 
lems.” 

Thailand and Indonesia 
“have been a bit slow,” Mr. 
Severino said in a telephone 
interview from Washington 
on Thursday. “Malaysia is a 
stronger economy but the 
ringgit was clearly overval- 
ued and Prime Minister Ma- 
hathir’s rhetoric has not been 
helpfuL The Philippines has 
been more discreet and has 
taken the right steps, but in- 
vestors may be concerned 


about the political situation 
there.” 

The speed with which 
some East Asian economies 
have been taking steps to 
clean up their financial sys- 
tems, especially in countries 
where bank lending to real 
estate and other risky ven- 
tures has been bloated, is at 
the heart of a political prob- 
lem, that lies behind the fi- 
nancial crisis. 

In some countries the au- 
thorities appear unwilling to 
do what international finan- 
cial officials are recommend- 
ing, namely to let a number of 
finance companies and b anks 
go bankrupt or be merged 
quickly, in part because they 
do not want to hurt their polit- 
ical cronies or financial back- 
ers who control these insti- 
tutions. 


RECRUITMENT 

1 You will find below a selection of employment offers published in last Monday’s International Herald Tribune 

1 For a copy of last Monday’s paper, please contact Sarah Wershof, London: 44 171 420 0326 

POSIIMN. 

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Ref: JP/PC 

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Fax: 44-171-242-5688 

International Finance 
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General Motors 

Ref: MN/6M 

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Africa House, 

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Tel: 44-171-404-5591 

Fax: 44- 171 -430-2393 

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Budapest 

Box 33070 

IHT, Friedrichst 15, 

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International Consulting Co 
in Petroleum Engineeruag 

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The Manager 

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Currency Crisis Costs 
Hanoi Millions in Trade 


HANOI — Southeast Asia’s currency crisis has cost 
Vietnam about $350 million in lost exports, a local 
newspaper reported Thursday, quoting the deputy trade 
minister. 

At the current rate, that figure could climb to as much as 
$500 million by the end of the year, the state-controlled 
Saigon Times Daily said. 

The deputy trade minister, Mai Van Dau, said the 
region’s spate of currency devaluations had hurt exports 
of peanuts and construction materials to Japan and Singa- 
pore, the newspaper reported. 

Quoting Mr. Dau, the report said that in the first nine 
months of the year, Vietnam exported 63.000 tons of 
peanuts, compared with year-earlier shipments of 
130,000 tons. (AP) 



U.S, Rues the Crisis, Envoy Says 


SYDNEY — Nothing could be more wrong than the 
belief in some parts of Southeast Asia that the United 
States and developed countries welcome the currency 
crisis afflicting their nations, the U.S. ambassador to the 
Asia-Pacific Economic Cooperation forum said Thurs- 
day. 

In a satellite news conference with reporters in Sydney, 
Beijing, Seoul, Manila and Singapore, Ambassador John 
Wolf said the United S tates had fought three wars to keep 
Asia free and said m i lli o n s of American jobs depended on 
Southeast Asia's well-being. 

“When Asia hurts, we hurt too,” he said. (AP) 


Malaysia Plans to Go It Alone 

KUALA LUMPUR — - Malaysia does not need as- 
sjstaoas from t he International Monetary Fund to over- 
come ite currem economfe crisis, ti» deputy prime minister 

andfinance minister, Anwar Ibrahim, said Thursday. 

the problems include the continuing fall of the ringgit 
against the dollar, the continuing drop of share prices on 
the stock exchange and slower economic growth. (AP) 

Outlook Flat for Asian Car Sales 

TOKYO -- The president of Toyota Motor Coro. 
SSl said Thursday he expected the car rmri£i 
mSou^st Aj,ato remain stagnant for the next two 
years because of the current currency turmoil, 

,, We “ ust ** patient for the next two years because of 
troubles,” Mr. Oku da said on the cvfc 
of the opening of the Tokyo Motor Show. 

Indonesia to Keep ‘National Car’ 

industry minister. 

a tlUS “ taa " e v ' such 

(Tommy) 

aSSass 

^ rats ututents brand name. [BUomh,^) 

Governor Assailed 

him of bowing to political 1 7 iur ^ a y- accusing 

defense of Taiwan ’scurtency!^^ ,n abandonin S lhc 

z pMh in 

f 5 Mlwn to try to 

currency crisis (h at began in Ju™ 8 ‘ he Scm,hras ' Asian 
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ASIA'S CbKRENCY CBI8K 


INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


PAGE 19 


■ CRISIS / iVeiu Fears for Japans Recovery 


;3 



Tokyo’s Banks and Exports Shudder 


By Velisarios Kattoulas 

Ituenetumal Htruid Tribune 


TOKYO — Japanese stock prices sEd to 
their lowest levels in more than two years 
Thursday, as the plunge in Hong Kong ignited 
fears about the impact of turmoil in Southeast 
Asia on Japan’s stuttering economy. 

in particular, analysts warned that Hong 
Kong companies could strug g le to repay a 
significant chunk of the $90 billion or so they 
owe Japanese banks. 

They also warned that the broader South- 
east Asian downturn could hurt demand for 


anal yst at ING Baring Securities in Tokyo, 
Japanese banks bad lent some $873 billion to 
companies in Hong Kong by the end of last 
year. 

Under a scenario in, which 20 percent of 
those loans go bad, Japanese banks would 
suffer a 5 percent leap In bad debts from an 
estimated $350 billion to approaching $370 
trillion. 


Analysts pointed out that the bulk of Jap- 
anese lending was to Hong Kong real estate 
companies. Most worrying, they stand to suf- 
fer toe most from the sharp increases in in- 

terest rates in Hong Kong. Designed to make it 

Japanese goods, and, ultimately, undermine harder for speculators to devalue toe Hong 
Tokyo’s battle to rejuvenate toe economy Kong dollar, higher interest rates drive up the 


Tokyo businessmen walking under a 
board flashing Thursday's stock decline. 


after a half-decade in the doldrums. 

For Japan, Southeast Asia, including Hong 
Kong, is both one of the biggest recipients of 
its overseas loans and investments and one of 
the largest markets for its goods. 

The Nikkei average of 273 selected issues 
plunged 536.06 points, or 3 percent, to end at 
17,15133, its lowest close since August 
1995. 

Shares in banks were hit especially hard 
because they are seen as toe biggest sufferers 
from Southeast Asia’s economic troubles. As 
a group, they slid 3.75 percent. 

Among toe big losers. Bank of Tokyo- 
Mitsubishi shares fell 110 yen to close at 
1,730 ($1432); Dai-lchi Kangyo Bank Ltd. 
shares tell 70 to 1,030, and Sanwa Bank t jH. 
shares fell 60 to 1300. 

According to James FiorHIo, a financial 


Police Raid Mitsubishi 

3 Executives Are Held Over Gangster Payoffs 


' C^^tyOmSuffFwmDbpaKka 

TOKYO — The police raided toe 
hea dqu arters of Mitsubishi Motors Corp. on 
Thursday after arresting three 'company ex- 
ecutives on charges of making illegal pay- 
ments to suspected racketeers. 

It was toe eighth such case brought ag^ingf 
a major Japanese company this year. 

Mitsubishi Motors’ assistant managing 
director, Atsushi Ueba, 56, and two other 
company executives axe suspected of hav- 
ing funneled more than 9 milli on yen 
($74303) to so-called sokaiya, or racket- 
eers, over toe past two years, a Tokyo Met- 
ropolitan Police Department official said 

Mitsubishi Motors* president, Takemune 
Kimura, said toe company 
had paid as much as 233 
million yen to racketeers 
since 1989. a year after the 
company listed its shares 
on toe stock market Pay- 
ments made more than 
three years ago fall outside 
a statute of limitations for 
prosecution, according to 
Japanese news reports. 

Mr. Kimura denied hav- 
ing previous knowledge of 
toe payoffs. 

Japanese newspapers re- 
ported that more than a 
dozen other companies also 
had transferred funds to the 
account used by Mitsubishi 
Motors for channeling 
money to the racketeers. 

Prime Minister ,Ryutaro 
Hashimoto expressed con- 
cern over the latest revelations of corporate 
misdeeds but encouraged prosecutors to 
“investigate as much as possible,” toe Ky- 
odo news agency reported. 

The three Mitsubishi Motors executives 
were arrested late Wednesday for allegedly 
paying two suspected racketeers, Texubo 
Tei and Kaoru Hamada, protection money 
to ensure that Mitsubishi Motors’ annual 
shareholder meetings would not be dis- 
rupted. Mr. Tei and Mr. Yamada were also 
taken into custody, police said. 

Sokaiya are gangsters who threaten to 



KWnblUodi/lltAincMhM 

Mr. Kimura announcing 
the arrests Thursday. 


ties to the underworld has proved difficult. 

On Monday, police arrested an executive 
of Matsozakaya Co., a large department- 
store operator, cm charges of paying off a 
racketeer before the company’s 19% share- 
holder meeting. 

Other companies with senior officials sus- 
pected of making illicit payments to sokaiya 
include the food-additive maker Ajinomoto 
Co., Dai-lchi Kangyo Bank Ltd. and all four 
of Japan’s biggest securities companies. 

Separately, Tokyo prosecutors brought 
charges against Yamaichi Securities Co., 
one of Japan’s largest brokerages, and sev- 
en former executives of the company for 
illegally reimbursing Showa Leasing Co. 

for 316,9 milli on yen in in- 
vestment losses. 

: “I think the police are 
working much more 
closely with toe firms to 
help mem to extract them- 
selves from these relation- 
ships, and I think the f irm s 
are much more willing to 
do that,” said James Flor- 
illo, senior analyst at ING 
Barings. (AP, AFP) 

■ Profit Hit at ‘Big 4’ 

Japan's four major secu- 
rities houses said they ex- 
pected a scandal involving 
alleged illegal payoffs to a 
corporate racketeer to have 
a negative impact on their 
second-half performances, 
Agence France-Presse re- 
ported from Tokyo. 

Nomura Securities Co., which in May 
disclosed its involvement with a gangster, 
said trading volume in toe six months ended 
in September had been “substantially" re- 
duced by administrative sanctions imposed 
on die company as a punishment by the 
Finance Ministry. 

All four companies posted lower earn- 
ings for the six months ended in September 
and declined to make a forecast for the full 
year ending in March. 

For the first half, Yamaichi said it had a 
consolidated pretax loss of 4.1 billion yon, 
and Nikko Securities Co. said its profit 


plunged 99 jwreent, to 283 million yaa. 

bers or their business decisions. Then- close 

ties to Japanese organized crime lead some pretax profit Echoed 31 parent fromthe 
executh^tofoar physical violence as welL year-«ulier penod, to 2Z.7 bdbon yen, amd 
Once commonplace, payments to sokaiya Japan s largest 
were banned under Japan’s Commercial Co., said profit slumped 36 percent, to 48.1 
Code in 1982. But severing corporations’ billion yen. 




M v-i 


RIPPLE: Hong Kong Stocks 9 Fall Hits Europe 

Continued from Page 15 








• , K 


■V 




.i - 


the deepening economic 
downturn in Asia, analysts 
said. France sends just 63 
percent of its exports to 
Southeast Asia, for example. 

[■ Independent Strategy, a Lon- 
don advisory firm that has 
been fairly bearish about toe 
prospects for Asia, estimates 
that a halving of the growth 

rate of Asia’s tiger economies 

would depress the European 
economy by a barely meas- 
urable 0.1 percent. 

The drop in stocks was off- 
set in part by a rally in bond 
prices as many investors 
sought a safer haven for their 
money. The yield on Ger- 
many's benchmark 10-year 
bond fell to 5.70 percent from 
5.76 percent on Wednesday, 
for example. 

.The relative moves of 
stocks and bonds provided 
some of the best grounds for 
optimism dial the markets 
were not on the verge of re- 
peating the 1987 collapse. 

: Mr. O’Dell of UBS said 
stocks in most European mar- 
kets had been about 10 per- 
cent overvalued relative _ to 
bonds, but Thursday’s price 


swings narrowed that gap to 
about 5 percent Prior to the 
1987 crash, stocks were as 
much as 35 percent overval- 
ued to bonds in some markets, 
he said. 

Mr. May said the world 
economy was better placed 
today to ride out any financial 

turmoil because of the glob- 
alization of trade and the ab- 
sence of serious inflation 
pressures that could drive up 
interest rates. , 

Still, some analysts said the 
European economy was vul- 
nerable now because interest 
rates are on toe rise at home. 


Francois Chanchat, strategist 
at the Paris brokerage of 
Chevreu de Vhieux, said the 
recent rise in the Bundes- 
bank’s key money-market 
rate to 33 percent has spread 
uncertainty in Europe. 

Rates are headed up, but 
nobody knows by how much 
because the increase is part of 
a convergence of national 
rates as Europe approaches 
the 1999 start of monetary 

union. <s 

“What has occurred today 
is a dramatic deterioration in 
confidence,” Mr. Chanchat 
said. 


ANTIQUE FAIR 

From October 29 to November 2. 1997 

FAYENCE - VAR 

Provence 

Exit highway AS, Lcs Act rets N S9 
Tel: +J3 (<>H *>■* ~ <} 1 1 11 


c-- ’ 


< * ! 1 
■ t-p * 


For iivvesimeivt information 

Read THE MONEY REPORT 

every Saturday m the t n i. 


cost of bank loans and discourage people from 
buying property. 

Thus, an extended period of high rates 
could trigger a sharp downturn in toe real 
estate market in Hong Kong. 

At toe same time, it could also send bad 
debt rates soaring at Japanese banks, analysts 
said. 

“A real-estate collapse in Hong Kong 
would be cataclysmic,” Mr. HoitUo told 
Bloomberg News. “It’s no joke.” 

Underlining the impact Southeast Asia's 
weakness is already having on Japanese man- 


ufacturers, Toyota Motor Coip.. Japan’s 
largest carmaker, said Thursday that it would 
make no new investments in Southeast Asia 
for at least the next two years. 

"We must be patient for the next two years 
because of the recent economic troubles,” 
Hiroshi Okuda, Toyota's president, said. 
“Consumers are bound to be very careful — 
that's why 1 am saying two years." 

For now, Southeast Asia's troubles appear 
to have had little impact on Japan's broader 
economy, because its own problems still 
dwarf those of Southeast Asia. 

But Mr. Okuda said he feared toe troubles 
in Southeast Asia could spill over into 1999. 
And analysts said that should he prove right, 
corporate Japan could wind up regretting its 
heavy involvement in toe Hong Kong real 
estate sector and its growing reliance on 
Southeast Asian consumers to buy its tele- 
visions and Walkmans. 

“Japan’s been expecting problems to hit 
Southeast Asia,” said Francis Kirkpatrick, 
global head of sales for Japanese financial 
products at ING Barings Securities in Lon- 
don. 

“What's more interesting is what will hap- 
pen next in Southeast Asia, and how that 
affects Japan.” 


Investor’s Asia 


HongKoig Singapore 
Hang .Seng ' ' ■ StcateTlmes ■ 


Tokyo 



Exchange index 
Hong Kong ■ Hang.Sewg' 


traffsda^ : Prev. 

Ctose 


11,637.77-10.41 


Sydney " r-, ■ 2,61490 


Tokyo 


«Mte}23S 


17,15135 1738730 -3.03 


Kuala UifnfHa* Cotr^osite 
Bangkok^ Set"" ' 


TOMS 731-17. -3.33 


CtoMtf 511.66 


Smut 


Composite Judex 60406 . 601.32 • +0-46: 


Taipei 


■ Stock MwtetJndex 7,892.47 +1,721 


Manila 

JatawtaT 


PSE 


.1,832-91 . *488 


Composite Index 49414 ■ 505.23 .*Z£0 


Woffington NZSE-40 


2 JBQ 9 J 3 & ZJB 3 SM -099 


Bombay SensBva Index 4JD0SJ7 4,08279 -1.79 


ail 

nd 

95 

ch 

it- 

an 

ih 

se 

es 

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ut 

e- 

It. 

la 

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to 

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Source: Telekuts 


iBUflulumal IlffaMTnbMC 


Very briefly: 


■ Germany has cut off dealings with Vietnam’s 
largest commercial bank, Vietnam Commercial 
& Industrial Bank, over its failure to honor guar- 
antees for export payments 

• Aetna Life & Casualty Co. said it had been 
granted permission to operate a life-insurance joint 
venture in China with China Pacific Insurance 
Co., the country’s second-largest insurer. 

• The Asian Development Bank approved a $105 
milli on loan to help bring roads, irrigation and 
drinking water to rural Vietnam. 

• Kia Group said it would take its creditors to court 
to fight their decision to put Kia Motors Corp. in 
court receivership and then turn it over to the state, 
denouncing the government-initiated move as uni- 
lateral and unfair. Separately, analysts predicted 
that Samsung Group would eventually buy Kia 


Motors from toe government 

• Japan’s so-called diffusion index of leading eco- 
nomic indicators rose to 27.8 in August from 22.2 
' in July but showed the economy continued to suffer 

from sagging consumer spending and capital in- 
vestment aftertax increases imposed April 1 . It was 
the seventh time in eight months that the index had 
been below the “boom or bust" level of 50. 

• The Singapore International Monetary Ex- 
change increased margin requirements, or pay- 
ments needed to hold a position, for futures con- 
tracts on Morgan Stanley Capital international's 
Taiwan index, effective Friday. The initial margin 
is now $4,000. changed from $2,700. while the 
maintenance margin was raised to $3,200 from 
$2,160. The changes were made to reflect the 
increased volatility on the underlying Taiwan mar- 
ket 


■ Vietnam's year-on-year inflation rate rose to 43 
percent in October from 4.0 percent in September. 

• Escorts Lt<L, an Indian makerof motorcycles, auto 
parts and cranes, said profit rose 52 percent, to 5523 
million rupees ($153 million) in the six months that 
ended Sept. 30 from 363 million rupees a year earlier. 
In the latest half, the company posted one-time gains 
of 160 million rupees. Sales rose 29 percent, to 635 
billion rupees. 

• Telstra Corp., Australia's leading telephone 
company, is considering taking a stoke in World 
Partners Co., which manages a global network 
alliance led by AT&T Corp. 

• Malaysian Airline System fibd. said flight can- 
cellations because of toe smog blanketing South- 
east Asia had caused 6.5 million ringgit ($1.9 
million) in losses in recent months. 

AFP. AP. Bloomberg. Reuters 


Romania 

Investment 

Summit 


Athenee Palace Bucharest Hilton, October 29-30, 1997 

The International Herald Tribune’s Romania Investment Summit promises to provide an 
unparalleled forum for high-level discussion, debate and decision-making. 

Timed to coincide with the anniversary of President Emil Constantinescu’s first year in 
office, the program for the two days will address both the extraordinary investment 
opportunities and the issues that need to be resolved to further encourage investment. 

President Constantinescu will give the opening keynote address and host a special dinner 
for summit participants and speakers at Cotroceni Palace, which houses the presidential 
offices - measures aimed to show the importance Romania accords to this summit. 

The dinner will be sponsored by RJR Romania 



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PAGE 22 


World Roundup 


Another Record for the Chinese 

athletics Another member of “Ma’s Army” 
smashed the women's 5,000-meter world record by more 
than three seconds Thursday, leading again to speculation 
about drug use by Chinese athletes. 

At the same time, a Chinese woman weight-lifter was 
stripped of a bronze medal at the National Games in 
Shanghai after testing positive for a banned substance, 
and a Chinese naan broke a weight-lifting record that the 
world governing body said it would not recognize be- 
cause of concerns over athlete supervision. 

Jiang Bo was timed. in 14 minutes 28.09 seconds at the 
games, breaking the 5,000 record set two days earlier by 
a teammate, Dong Yanmei, also coached by Ma. Dong 
was second in 14:29.82, also under her previous mark. 

Mn who denies giving his athletes illegal or per- 
formance-enchancixig drugs, said the time was right for a 
Chinese track comeback after a two-year slump. (AP) 

Gretzky’s Wife Is Injured at Game 

hockey Janet Gretzky, the wife of Wayne Gretzky, left 
a hospital Thursday after being treated for a mild con- 
cussion when a pane of plastic glass was knocked loose 
and struck her during a National Hockey League game at 
Madison Square Garden. She was also briefly uncon- 
scious and suffered a cat lip. She was sitting near center 
ice Wednesday night when the Rangers' Ulf Samuelsson 
checked the Chicago Blackhawks’ Sergei Krivokrasov 
into the boards, knocking the thick pane onto her. (AP) 

Krajicek Upsets Sampras in Germany 

tennis Richard Krajicek upset the top-ranked Pete 
Sampras, 6-4, 6-4, Thursday in the third round of the 
Eurocard Open in Stuttgart, while Patrick Rafter, the U.S. 
Open champion, had to battle from behind to advance. 
Sampras lost only for the 10th time this year, against 46 
victories. “He played some great tennis and he served 
huge,” Sampras said of Krajicek, who now holds a 4-2 
career edge over Sampras. Rafter overcame a German 
qualifier; David PrisosU, 3-6, 6-2. 6-1. (AP) 

A Winter Olympics With No Downhill? 

Olympics The Winter Olympics will essentially be 
.stripped of the most glamorous skiing event if the course 
forme men’s downhill is not lengthened, tee bead of the 
international ski federation said Thursday in Tignes, 
France. Man: Hodler, president of FIS, said leaving die 
course as currently set would torn the downhill into tittle 
more than another super-giant slalom. “I don't want to 
give two medals, each for die super-G,” he said. (AP) 

Be Careful, Grand Prix Drivers Are Told 

auto racing Formula One’s governing body has 
warned drivers that they will be penalized if they de- 
liberately crash into Jacques ViUeneuve or Michael Schu- 
macher in the decisive final race of the season Sunday. 
Ferrari’ s Schumacher leads the drivers’ championship by 
one point over William s’ Villeneuve going into the 
European Grand Prix in Jerez. Spain. (AP) 


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Sports 


.> 


'."H 1 


FRIDAY, OCTOBKR 24. 1997 


f 


Long Night for Newcastle 

But Coach Is Upbeat After a 1-0 Loss to PSV 


By Peter Berlin 

Inun uukmat Herald Tribune 

E indhoven — S ome- 
times, listening to soc- 
cer managers talk can 
make sane people feel they are 
losing their grip on reality. 

On Wednesday night, after 
their trams had played in tee 
Champions' League, Dick 
Avocaat, the manager of PS V 
Eindhoven, and Kenny Dalg- 
lish, the manager of New- 
castle United, gave a partic- 
ularly surreal performance. 

PSV had just won, 1-0, its 
first-ever victory in Champi- 
ons League play. Yet, Avocaat 
wore a serious expression. 

Newcastle had lost for the 
first time. Defeat left it two 
points behind the Group C 
leader,, Kiev. Newcastle’s 
two England international 
midfielders — David Batty 
and Robert Lee — received 
yellow cards and will be sus- 
pended when PSV visits 
Newcastle OcL 5. Dalglish 
was smiting. 

On Tuesday, the extremely 
defensive team Dalglish se- 
lected was cumbersome in 
defense, overrun in midfield 
and toothless in attack. New- 
castle managed two shots, 
both angled drives by winger 
Keith Gillespie that flew 
straight at Ronald Waterrcus, 


the PSV goalkeeper. 

Newcastle threatened the 
PSV goal only twice after 
Wtm Jonk gave PSV the lead 
in the 28th minute with a 
sweetly struck volley. 

Dalglish started with .only 
one real striker, Ian Rush, 36, 
and had none on the bench. 
Nearly 40 minutes after the 

Eoropeak-Soccer 

goal, Dalglish introduced his 
one attacking option, mid- 
fielder Timur Ketsbaia, who 
promptly beat two PSV play- 
ers, 'raced to the edge or the 
penalty area and teen blasted 
his shot high over the goal- In 
the end, Newcastle was lucky 
to get even zero. 

Dalglish most have seen a 
different match. 

“It was a good perfor- 
mance,” he said. “Better 
than the performance we put 
on in Kiev," where two 
wildly deflected second half 
shots gave Newcastle a for- 
tuitous 2-2 draw. “The lads 
played welL It was always 
going to be a difficult match. 
ft’s just unfortunate we didn’t 
come away with a result” 

Advocaat uses tee same 
speech writer. 

“PSV played very well,” 
he said. His team played “a 
very organized match. 1-0 is a 


good result, a logical result" 

What followed left Ad- 
vocaai’s translator unable to 
believe his ears. “Newcastle 
have played very well in 
Europe but not in the English 
Premier League," he trans- 
lated. Not at all an unreas- 
onable statement — New- 
castle lost 4-1, at Leeds on 
Saturday. But Advocaat cut 
in. After a whispered confer- 
ence tee translator corrected 
himself: “They have played 
yery well in Europe, and in 
the Premier League.” 

Dalglish gave a grin, mut- 
tering: “And if we win aft our 
games in band we’ll be top of 
tee league.” in a tone which 
suggested even he did not be- 
lieve what he was saying. 

The greatest threat to soc- 
cer managers’ sanity is tha* 
they are expected to control 
events that are largely beyond 
their control. 

Before tee season, Dalglish 
had three star strikers. Alan 
Shearer tore an ankle liga- 
ment and won't be back this 
year. Faustina Asprifta, who 
had scored five goals in three 
European matches, tore a 
stomach muscle in Kiev and 
may be back next month. The 
third, Les Ferdinand, was sold 
to Tottenham Hotspur, where 
be is out, injured, to help bal- 
ance tee club’s books. 



Jrtiyl j uf i - /Kr i K ra 


Newcastle United’s Steve Watson leaping for ball as Eindhoven’s defense moved in. 


The club's balance sheet 
was in tatters when Dalglish’s 
predecessor, Kevin Keegan, 
resigned ahead of New- 
castle’s stock market flota- 
tion last spring. Maybe that is 
the source of Dalglish’s good 
humor — tee club may be in a 
mess, but it's not his mess. 

When asked if his team 
missed Shearer dr Asprilla, 
Dalglish clung to the sort of 
clicbfi teat keeps managers 
sane: “The important players 
are the ones who are fit.” 

When asked if his team 
would miss Batty and Lee, he 


cheerfully reversed himself: 
“Any player we’re missing is 
a key player." 

The new rule teat allows 
second-place teams into the 
Champions League makes 
room for elute like New- 
castle, which has been unable 
to win big matches under 
pressure. Certainly Dalglish 
acted throughout as if he had 
not expected to win on Wed- 
nesday and was not terribly 
disappointed to have lost 

Group C contains another 
league runner-up: Barcelona. 
It is having tee sort of com- 


ically disastrous campaign 
that used to be the exclusive 


arce Iona’s high priced team 
losL 3-0. in Kiev on Wed- , 
nesday and sits at the bottom . • 
of the group with just oqe .. 
point, lfit wins all three of its 
remaining games, Barcelona 
could, with a lot of luck,qual- ■ 
ify forthe quarterfinals. Still, . 
Dalglish drew some consol- , 
ation from its fate. 

“There’s always someone * 
worse off than yourself/’ he 
said, with his biggest grin of 
the night. 


- . 


Hope Fades for Barcelona 


Reuters 

LONDON — Barcelona’s 
hopes of reaching the later 
stages of the European Cup 
now seem to have dimmed 
after the team was beaten at 
Dynamo Kiev, 3-0. 

While three other former 
winners — Real Madrid, 
Bayern Munich ' and 
Manchester United — all 
claimed their third successive 
victories Wednesday night, 
the 1992 champions suffered 
their second defeat in three 
in Group C of the 
dons’ League. 

The defending champion, 
Boiussia Dortmund, lost at 
Parma, 1-0. 

With only the group win- 
ners and two of the six run- 
ners-up advancing to tee 
quarterfinals, Barcelona is 
already six points behind 
Kiev at the halfway point of 
the six-match group stage. 

Sezhiy Rebrov and Yuri 
Maximov had given the 
Ukrainians a 2-0 lead by half- 
time, and it was all over for 
Barcelona when their goal- 
keeper, Ruud Hesp, was ejec- 
ted after an hour. 


Barcelona's great rival. 
Real Madrid, seems poised to 
qualify ftom Group D after a 
5-1 home victory over 
Olympiakos. Real Madrid 
now has a maximum nine 
points. 

Rosenborg is second in tee 
group after a 2-0 victory over 

Porto in Norway, ft was the 
third straight defeat for tee 
Portuguese team. 

Bayern Munich posted an 
impressive 5-1 home 
over its main Group E it 
P aris Saint-Germain. 

Bayern also moved to the 
maximum nine points, with 
Besiktas of Turkey second 
after a 1-0 victory over IFK 
Gothenburg with Zlatko 
Yankov chipping in the goal 
after just six mmoles. PSG 
has three points to none for 
the Swedes. 

Manchester United be- 
came the third team to claim 
maximum points by edging 
Rotterdam Feyenoord. 2-1, at 
Old Trafford stadium. 

Paul Scholes scored tee 


first goal during the first half 
and Denis Irwin added me in 
the 73rd-minnte. A late break- 
away goal by Henk Vos came 
too late for the Dutch, who 
Stay third on three points. 

Juventus, which lost to 
United three weeks ago, 
banded Kosice its third suc- 
cessive defeat, 1-0, in Slov- 
akia to take the Italians to six - 
points. 

Heman Crespo gave Parma 
a 1-0 victory over Dortmund, 
currently thud ftom the bot- 
tom in the Bundesliga. It was 
Parma’s I5te successive 
home victory, which took the 
I talians to the top of the stand- 
ings "with seven points — one 
ahead of Dortmund. 

Sparta Prague, which beat 
Galatasaray, 3-0, is And with 
four points with tee Turks still 
seeking their first point 

Monaco hammered Belgi- 
um’s Lierse, 5-1, and goes to 
the top of the standings in 
Group F with six points. 

Bayer Leverkusen also has 
six points aftera 2-0 victory at 
Sporting Lisbon. With four 
points. Spatting drops to 
third. 



The Yakult Swallows celebrating their Japan 
Series title Thursday over the Seibu Lions. 


Yakult Swallows 
Win Japan Series 

The Associated Press 

TOKYO — Takahiro Ikeyama 
drove in three runs with a single and 
a sacrifice fly, and Atsunori Inaba 
scored a pair to give the Yakult 
Swallows a 3-0 victory Thursday 
over the Seibu Lions for their third 
Japan Series title in five years. 

Terry Brass allowed two hits 
over four innings, and four reliev- 
ers, including Kazuhisa Ishii, who 
was credited with tee victory, lim- 
ited Seibu to three more hits the rest 
of the way as Yakult claimed its 
fourth series title, 4 games to 1. 

“There isn't that big of a dif- 
ference between the abilities of the 
two teams,” said Yakult’s man- 
ager, Katsuya Nomura. "But, 
when you add up the tittle things, it 
became kind of one-sided in this 
series." 

It was the third series between 
the two teams in tee last five years, 
with Seibu winning in seven 
games in 1992 and Yakult return- 
ing to claim the title the following 
year, also in seven games. 

A crowd of more than 3 3. (XX) 
watched the final game at Tokyo’s 
Jingu Stadium. 


Scoreboard 


BASEBALL 


■I amn Series 


immOttM TOKYO 
Yota It Swoftiws 3L Settw Lkns 0 

YUM warn cteanptonship writ* 44 . 


BASKETBALL 


NBA Preseason 


Boston 99. Orkmdo 96 
Indiana V&OKUtaOr S3 
Mflwos krai Ob Minnesota 90 
Dewar 1 01, LA. LSan 92 
Havston 10ft Dates 97 


LA. rappers 90k Aftmta 79 
Parflond 107. Golden Stake 88 

nmmuwrsHEsum 
New Yack 8% Boston 84 
Charlotte 1 09, UkA 99 
□etroiHM Sacramento 84 
San Antonio 1U Data 69 
□mkmdPSk Minnesota 89 
PUtodeftMa 9S. Oiknga 87 
SeoHe 122, GoWen State 87 
Phoenix 113k Vancouver 83 
LA. Laken 124. Washington 113 

Euro League 

groups 

Turn Tefefeom 7% PAOK Satoatoa 67 


ICE HOCKEY 


NHLSTAW PUft S 


7 

PhPatMpMa A 

New Jersey A 

N.Y. Wandas 3 

N.Y. tangos 2 

Hnrtda 2 

Tampa Bay 2 


ftJUUqiCDtVISKM 

W L T Pk CF CA 
2 0 14 33 19 


3 1 
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3 2 

4 4 

5 1 

6 1 


13 32 23 

8 3D 16 

8 23 30 

8 22 S 

5 14 25 

5 IS 29 


AEK Ataens 79, Atea Better 80 


W L T Pta GF GA 
Boston 7 3 0 14 29 23 

Ottawa 6 2 2 14 32 33 

PHtstwnpi 6 3 2 14 30 23 


Manfred 

4 

2 2 

10 

22 

14 

ButUto 

3 

5 2 

8 

25 

31 

CaroBna 

2 

7 2 

6 

25 

36 

WnMCMBUM 

| 



CENTRAL DTRSKM 




nr 

L T 

Pis 

GF 

GA 

Detroit 

7 

1 2 

16 

38 

20 

St Louis 

7 

2 1 

IS 

34 

22 

Oaoat 

5 

4 1 

11 

31 

25 

Phoenix 

4 

3 1 

9 

25 

24 

WWW 

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A 1 

5 

■ 1.8 

29 

Chicago 

2 

PAORC 

7 0 4 

Grarai 

12 

28 

Cotorada ' 

6 

I 3 

15 

37 

25 

La&Angdes 

3 

4 3 


35 

32 

Vancouver 

3 

3 2 

B 

22 

20 

Anaheim 

3 

4 2 

8 

17 

24 

Edmonton 

3 

6 1 

7 

19 

33 

Sai Jose 

2 

7 0 


22 

31 

Colgary 

1 

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19 

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INTERNATIONAL HERALD TRIBUNE, FRIDAY, OCTOBER 24, 1997 


PAGE 23 


* 4 'H 


SPORTS 





||Flip Side for Rival Rookie Starters 

Cleveland Hammers Florida, 10-3 , to Even Series at 2-2 





BA I B Y Murray Chass " 

Mm r Nt *' YarkT "*'S^ir' ' 

’•'LL-u^D — L ess a ycar 

la** 1 y*F& 1 ' pitching for 

■ iliifcj 6 ? CotIS ? a i e Scoipions, and 
P - °l5- 4uDder5 t ’ Patching for the Tempe 
\ : ■ .iii i* 6 °PP^“g starters in an 

League game. 

^^ lders enQer g ed as the winning 
uwtfi Cta Wednesday nieht »fw» Umo n t/il. 


■in r . — wmc pncn- 

B Ms, tow major league rookies, started in 
*V fourth, game of the World Series 
ms. tune, Wnght was the winner. 

The Cleveland Indians battered Saun- 
irs in thetfurd inning and proceeded to 
sfeat the Florida Marlins. 10-3, and 
9 « *® Series 31 two games each. 
IL right was not spectacular, but he 
\ bored his way through six innings and 
• \3 ver re linquished the lead Manny 
^amirezgave him with a two-run home 

, , in in the first innin g 
* 6i Yet another rookie, Li van Heman- 
ez,- was to pitch for the Marlins in 
teme 5 on Thursday night Hernandez, 
»ho was the winning pitcher in the 
; cries opener, will oppose Orel Her- 
-Jiiser, ancient in comparison and the 
- jsf-game loser. 

“T don’t like die cold,” Hernandez, 
; ie poung Cuban defector, said before 
• ie game, discussing everybody’s fo- 
oritfc World Series topic. “I don’t litr* 
" j pitch in the cold. I like it when it's boL 
rat these are the times where you can’t 
'■voriy about whether it’s hot or cold. 
wvo just got to go out and pitch and 
o tfoe best job you can.” 

The forecast for Thursday evening 
■aSliot as bad as the weather was on 
/edhesday night The temperature was 

..I 



\ . i k 1 1 

W in 


Indians lO, Mahuns3 


i-r, 

' DWWted 
Rerfwtoss 
, . Sheffield rt 
Bonfflo3b 
Daulton lb 
JUdu If 


AH R H 
4 0 0 
4 0 7 

3 0 0 

4 0 0 
3 2 2 
3 I 1 


k 

ef 



«**•' l.j* ■ 


*4-4' J-- T '• ’ " " 


Efeenreicii dh 2 0 2 


D-AAiftE ph 
Ctfnsonc 
Cpunsaf 2b 


bAbbottpti 1 0 0 


CkRU 

Roberts If 

Gleslf 1 0 1 1 0. 0 IjOOO 

Vbqudss 5 2 2 0 0 0 .235 

Rim*tzrf 4 2 I 2 1 I .174 

Jeritodh 3 2 1 0 2 2 JOB 

MoWUlams 3b 3 3 3 2 2 0 412 

SAkmarc 5 0 3 3 0 0 471 

Thome lb 4 0 10 11 .294 

TFanandez 2b S 1 2 1 0 0 455 

Grteomcf 4 D 0 0 0 1 J00 

Totah 38 10 15 9 6 7 

Florida NO IIS no-3 i 2 

Oontoad 303 001 12*-10 15 0 

dropped ootforEteenreicfiinttieSSL tvgrovmted out 
fer Coimufl in die 98 l 

E— Renteria 0). Somdes CD. LOB— Florida 6, 
Cleveland IOl 

2B— Oautton (1). Roberts (A. SAJomar (11. 
HR— MaWIBom* (Doll Powdb Alou C8 off JfWrtghfc 

Ramks CD otl Saunden. RBIs-Alou 2®, Eteen- 
reWt (31, G8es O). RoroUtt 2 Ml. MaWMoms 2 0). 

S Alomar 3 («. TFemanda (2). SB-Cotnwn 01. 
Vlzmwl Cl>- 

CS — Giles (l).CIDP — BonSia. 

Runnera ten In scaring pasitton-Horido 3 CSheffidA 
CJohn6arvCocnse®iCtereto»id4(VIzqudlThofne3). 
Runners moved np— Renteria. Grissom. 
DP-Oevdand 2 CTFemondet Vizqwei and Thome). 
(Thome). 

Florida IP H RER BB SO HP ERA 

Saondert L 0-1 2 7 6 6 3 2 68 27 M 

AHomeca 3300 0 4 57 000 

VDsbem 2 3 2 2 2 1 34 9J0 

PeweB 1 2 2 2 1 o 23 16J0 

Orrcteil IP H RER BB SO HP ERA 

JrWlWilW.l-O 6 5 3 3 5 5 105 4S0 

BiArateiwn S. 1 3 1 0 0 0 2 38 2J0 

j Saunders pitched to 5 betters to the 3rd. 

' MhoriM Twnners-saned-AtPBnsear 3-1. 

WP— JiWright. 

Umpoes-Home, Kosc First Marete Seam* Kfltoec 
ThW, Montague Lea Font Rigid. West 
T~e3:l5-A — 44877(43^863]. 

Series Bod 2-2. 


81 BB SO tog. 

0 0 4 .167 

0 0 0 J13 

a 1 2 333 

a o o .in 

0 I 0 500 

2 1 0 .267 

1 1 0 467 

0 0 0 500 

0 0 1 .267 

0 1 0 .231 

0 0 0 500 

3 S 7 


AB R H Bl BB SO Aug. 
4 0 1 0 0 2 513 


1 0 0 

4 0 0 

2 0 0 



Boride 

Sounders L 0-1 
AHanseca 


JrVWghtW.1-0 

BrAndonon $. l 


3E Fahrenheit (3 centigrade), possibly 
the coldest ever for a World Series 
game, and the wind chill was 18 when 
the game began. The game-time tem- 
pcraiure Thursday ni ght was expected 
to be about 45, although the forecast 
included a threat of rain. 

Snow showers fell on Jacobs Field 
throughout batting practice. The con- 

W ORLPSIRIII 

ditions were certainly different from the 
last time Wright and Saunders pitched 
in the same game. 

‘’The first couple times I watched him 
pitch,” Saunders said earlier of Wri ght. 
"‘I said it’s not going to take this guy long 

because he has great stuff . I knew be was 

going to be here sooner or later.” 

Wright, on the other hand, said he 
was not familiar with Saunders. 

_ *‘I don’t remember too much about 
him,” Wright said. “I saw a lot of guys 
out there.” Buthe didn’t get to see much 
of Saunders on Wednesday night. 

A 23-year-old left-hander, Saunders 
gave up a one-out single to Omar Vizquel 
in the fust inning, then watche d Ramirez 
sock his second home run of die Series. 
Saunders struck out David Justice for the 
second out, but Matt W illiams sing le to 
right and scored as Sandy Alo mar Jr. 
drilled a double to left-center field. 

Saunders pitched a scoreless second 
inning but never got a batter out in the 
third, prematurely ending only the sixth 
all -rookie pitching matchtrp in World 
Series history. He gave up a walk, 
single, walk, single and walk to die five 
batters he faced in the third. Mixed in 
were two errors, including one of his 
own when he threw wildly on a pickoff 
attempt to first. The other was an errant 
throw by shortstop Edgar Renteria. 
Three more Cleveland runs resulted. 

“I think die changeup that Al omar hit 
confused him a little bit,” Marlins man - 
ager Jim Leyland said of his pitcher. ‘T 
think it got him trying to be too perfect 
with his pitches all of a sudden. He was 
bouncing his changeup, and he felt lflm 
he had to make a perfect pitch every time 
to get the club out Normally a good game 
is dictated by your starting pitcher.” 

Wright, a 2 1 -year-old hard-throwing 
right-hander, did not pitch a strong 
game, but he was good enough to main- 
tain what his teammates gave him. 
“Janet was behind a lot of hitters,” said 
his manager, Mike Hargrove. “He 
walked a lot more hitters than we’re 
used to seeing him walk.” 

Wright entered the game with mixed 
post-season results. He twice was die 
winning pitcher against the Yankees in 
the division series; indeed, he was die 
primary reason die Indians knocked off 
the Yankees. But Wright faltered against 
Baltimore in the championship series, 
allowing rive runs in three innings. 

“I thought about Game 5 against 
New York,” Wright said when asked if 
he had dwelled on the inmortance of this 
game to die Indians. “If we lost, we go 
home. At least if we lost tonight, we got * 
a chance to play tomorrow.” 

He admitted being nervous. “It has 
been said a million times if you don’t get 
nervous, you’re not human,” Wright 
said. ’T was sitting on die couch in there 
and the butterflies started churning. Then 
you get out there and it’s baseball.” 

In six innings Wednesday night, 
Wright struggled with his control; walk- 
ing five and throwing 50 balls along with 
55 strikes. But die three walks he issued 
in the first three innings did not hurt him. 
He didn’t falter until the fourth, walking 
Moises Alou after Darren Daulton 
doubled, and then Jim ELsenreich singled 


for the Martins’ first run. In the sixth lie 
walked Daulton with one out, and Alou 
hit his second Series home run. 

* ‘The changeup was not a good pitch 
for him tonight,” Hargrove said. 
“Daulton hit the wall for a double, and 
he hung a two-seam fastball that Alou 
hit for the home run. But he did his job. 
He got us through the sixth inning.” 

Brian Andoscn, who spent most of the 
season in the minors but has been ef- 
fective in the post-season, pitched the last 
three innings and allowed only one hit. 

■ Davis Gets Clemente Award 

Eric Davis, the player credited with 
inspiring the Baltimore Orioles this sea- 
son with his courageous battle against 
colon cancer, has been named the 
Roberto Clemente man of the year by 
Major League Baseball. The award is 
named for the Pittsburgh Pirate star who 
died in a plane crash delivering supplies 
to earthquake-stricken Nicaragua in 
1972. 



II Ar HULWKrmm 


The Indians’ Matt Williams sliding under the outstretched arm of Marlins’ catcher Charles Johnson for a run. 


Wright the Marlin Killer Saves Indians for Game 5 


By Thomas Boswell 

Washing ion Post Service 

C LEVELAND — Ever since the 
Baltimore Orioles’ Brady An- 
derson, Harold Baines and Ra- 
fael Palmeiro hit borne runs in the same 
inning off Jaret Wright last week, the 
Cleveland Indians have worried about 
their prized 21-year-old rookie. 

Too many innin gs at too young an 
age, especially under big-game pres- 
sure, have ruined more star prospects 
than all the other ills to which pitchers 
are susceptible. Wright was deep into 
the danger zone. 


After working just 230 innings in two 
minor league seasons combined, the 
right-hander was pushing 215 this year. 
“His tank may be getting empty,” said 
Mike Hargrove, the Cleveland manager. 
“We’re concerned about him.” 

The 6-foot-2, 230-pound fireballer 
also throws a bit across his body with a 
delivery that pats a lot of strain on his 
shoulder, a red flag for arm troubles in a 
young pitcher. Have a care. Tribe. 

If Wright had lost Wednesday night, 
his team would have trailed in the Series 
by 3-1. Tribe taunters in Miami, know- 
ing that Cleveland hasn't won a Series 
since 1948, could begin to chant: “Fifty 


More Years.” Instead, he won, just as he 
won twice against the world champion 
New York Yankees in the first round of 
the postseason. Once again, Wright 
pitched just long enough and just well 
enough to scrape out a gutsy victory 
when the Indians needed one most. 

On one of the coldest nights in Series 
history, with a wind chill of 18 degrees 
and snow flurries in the air, Wright 
reared back and brought the heat. Some- 
times his cold fingers, no matter how 
much he blew on them between pilches, 
would not allow him to find the strike 
zone. He walked a Marlin in each of the 
first four innings. But his raw stuff and 


moxie gave the Indians enough time to 
build a 64) lead. 

“Wright was all 1 expected and 
more," said the Marlins’ manager, Jim 
Leyland. "That’s a great arm. I was 
impressed and so were my hitters. He has 
all the ingredients to be a great one.” 

As long as Wright stays healthy, the 
Indians are going to have a fine, tough, 
cocky pitcher. But to be a superior one, 
be will have to develop an off-speed pitch 
and slop working so deep into counts. 

Now that Wright has saved them 
from a 3-1 deficit, the Indians should 
win this Series. Only the tough question 
remains: Will they? 


For Virenque, 1998 Falls Flat 


By Samuel Abt 

International Herald Tribune 

P ARIS — The organizers 
of the Tour de France 
unveiled next year’s 
course Thursday in Paris and 
mined Richard Virenque’s 
day — even his 1998, to hear 
him tell it 

“That’s not a Tour thai sat- 
isfies me,” said Virenque, the 
Fren chman who finished- 
second in the Tour this year 
and won his fourth successive , 
.fide of best climber. “It’s less 
hard than this year. Diffi- 
culties make the difference in 
a race, and there aren’t enough 
difficulties. 

“I’ll have to wait for 
1999,” he concluded glumly. 
Virenque desperately wants to 
become the first Frenchman 
since 1985 to win the world’s 
greatest bicycle race but has 
only one string to his bow: He 
climbs strongly and has a team 
composed of climbers. Time 
trials, especially long and flat 
ones, are where he loses at 
least as much advantage as he 
gning in the mountains. 

So be sat in the audience as 
the roughly 3,850 kilometers 


(2,400 miles) of the 85th Tour 
de France were detailed and 
saw, to his horror, that there 
will be fewer mountains next 
year than this, that both time 
trials will exceed 50 ktiome- 

Tourde Frahcb 

ters, as they did this year, and 
that neither one will be on the 
ascent, as one was this year. 

All in all. not for him, he 
said. 

Jan Ullrich, the German 
who won this- year-by staying 
close in the mountains and 
dominating the time dials, did 
not share that feeling. 

“It’s a good course for 
roe,” he said. “I like it” 

Much more of an all-around 
rider than Virenque, Ullrich 
had reason to be happy. At 
least on paper, the course 
lodes far less difficult than this 
year's edition and does not fa- 
vor the climbers. 

“The race will be much 
more open than this year,” 
said Johnny Weltz, a directeur 
sportif, or coach, of the U.S. 
Postal Service team. “We’ll 
have a much better show. No 
team can dominate it, as Fcst- 


ina did in the mountains this 
year.” The Festina team is led 
by Virenque. 

As has been known since 
last winter, the race will begin 
in Ireland on July 1 1, a week 
later than usual. Both choices 
were determined by soccer’s 
World Cup. which will be 
played in France from late 
June until July 12. 

After three days in Dublin 
and Cork, the race returns to the 
motherland July 14, France’s 
national day. and strays only 
one other time, on a short in- 
cursion into Switzerland. 

Traveling in a counter- 
clockwise circuit, the Tour 
will end in Paris on Aug. 2. 
Twenty or, at most. 21 teams 
of 9 riders each will be invited, 
down from 22 this year. 

Of the 21 stages, excluding 
the short prologue in Dublin 
and a day off midway through, 
12 will be on the plains, 2 will • 
be time trials or individual 
races against the clock, 2 will 
be in hills and small mountains 
and 5 will be in the high moun- 
tains. There will be 23 sig- 
nificant climbs, compared 
with 27 this year. 

The climbing comprises two 


-IRELAND 
DUBLIN ’ 

6 

. Enniscorthy • 


1998 

Tour de France 

July 11 -August 2 


JL; ' 

* / .ffoSRpfl 

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>Champs-Elysees 


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l-uehon ;: 'i Tarasspon ' 

Plateau de Bellle sC^Ariege international Menu Tri&ac 

The 1998 Tour de France course, from Dublin to Paris. 


days in the Pyrenees and three 
in the Alps. While major peaks 
are included in both mountain 
ranges, the Tour will not visit 
the feared AJpe d’Huez. An- 


other towering test, Mont 
Ventoux in Provence, will also 
be skipped. 

No wonder Virenque was 
so upset. 


, DENNIS THE MENACE PEANUTS 

i-r **~ 


CALVIN AND HOBBES 















PAGE 24 


PAG 




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POSTCARD 


Deluxe 6 Camping 9 


By Patricia Leigh Brown 

New York Tunes Service 


L AKE PLACID, New 
York — A century ago, a 
generation of moneyed urban 
sportsmen, dressed in vel- 
veteen of approved cut and 
fortified by crfcme de men the 
served in tin cups by their 
butlers, took to the mossy 
wilds and trouty streams of 
the Adirondack, momentar- 
ily leaving their marble piles 
and Old Masters behind to 
build sprawling rustic retreats 
in the woods. 

For captains of industry 
who yearned for the “simple 
life,’ 'a Great Camp, that 
bark-clad shanty A la mode, 
was the ultimate trophy. 

It still is. 

Not far from a godforsaken 
dirt rctad, Peter Torrance, a 
modern-day camp builder, is 
in the throes of completing a 
12,000-square-foot (1,100- 
square-meter) lodge with a 34- 
foot ( 10- meter) tower of birch 
bark and “brainstorm sid- 
ing," an Adirondack signa- 
ture made from the rough 
edges of the tree. Among other 
things, the lodge will feature a 
mechanized chandelier, which 
drops automatically for clean- 
ing, and seven fireplaces. 

“He said, Td love to see 
the High Peaks,’ " Torrance 
recalled, speaking of his cli- 
ent. a top media executive. 
* ‘And I said, ‘Puta tower over 
there, what the heck.’ " 

Just a pebble's throw away, 
a brand new mahogany-clap- 
board Great Camp of 8,000 
square feet rose undera tennis 
bubble that kept the temper- 
ature at a perfect 55 degrees 
Fahrenheit (13 degrees cen- 
tigrade) all winter so that con- 
struction could proceed. 

Under way is a Great Camp 
revival that spiritually com- 
munes with the camps of J. P. 
Morgan and Alfred Vander- 
bilt. More chan a dozen major 


new fantasy compounds 
hewn from materials of the 
forest have appeared here, 
some within buckshot of their 
neighbors. The most daring 
symbol of the current ramp 
craving isTopridge, Marjorie 
Merri weather Post’s 68- 
building complex, a place 
where color-coofdinarea fly 
swatters were once de ri- 
gueur. Here, the Texas real- 
estate magnate Harlan Crow 
is razing some old structures 
and building some new ones. 
Through the thickets, five gi- 
ant cedar-shingled onion 
domes are rising on Crow’s 
Russian-inspired octagonal 
log cabin, a surrealistic folly 
with crisscrossing timbers. 

In this land, as red maples 
are framed anew through dia- 
mond-fretted windows, the 
delicate dance between man 
and nature continues even in a 
sign at a hotel that spells out 
“No Golf Spikes” in twigs. It 
has been brought to a head by 
Mary Lou Whitney’s plan to 
subdivide much of her 51,000- 
acre (20,400-hectare) Adiron- 
dack estate for development, 
including 40 of what the Whit- 
neys call “Great Camps.” 


□ 


The classic camps, of which 
roughly 40 still exist, stand 
today as embodiments of the 
desire to be at one with nature 
while triumphing over it — 
what Jeffrey Sellon. a 
Raquette Lake camp owner, 
calls “a functional situation in 
the wilderness.” The camps’ 
decoration, built from trees 
harvested in the winter when 
sap is low to retain their baric, 
eloquently expressed an anti- 
urban urge. “It's a deeply am- 
bivalent impulse.’’ noted Mi- 
chael Wilson, a historian at the 
Sagamore Institute. “Because 
the desire was to bring all the 
amenities from civilization, 
and disguise them.” 

He added, “ft still is.” 


In Russia, a Generation X That Breaks the Mol® 


By Daniel Williams 

Washington Post Service 


M OSCOW — In 1992 everything seemed 
to point Alexei Samoukov toward a 
career in physics. His parents were engineers, 
he had been trained in science and, at 25, he 
was deep into postgraduate , studies about 
radiation and its effects on living tissue. 

But the same training that encouraged him 
to look at the world with a dispassionate eye 
led him to see that in Russia the pursuit of a 
sc ieutific career could be unrewarding. As the 
Soviet Union collapsed, money for research 
dried up and even at top institutes, equipment 
for sophisticated study was lacking. 

Samoukov made a dramatic switch. He 
traded science for business and embarked on 
a career that didn't exist when he was young- 
er research into the financial bonds market. 

“Our generation had to make a choice. 
Something new was happ ening and you 
could not rely on the old ways. So it was 
either go with the new system or drown,’ ’ he 
said last week. 

Samoukov is pan of a generation that 
straddles the old and new in Russia and is 
making a success of iL The generation's 
progress is largely a Moscow phenomenon, 
because the capital is tire only city that has 
boomed since the fall of communism. If the 
city is the future of Russia, then Samoukov 's 
generation represents the future of the 
middle class. 

By age, Samoukov can be said to belong to 
Generation X, as tt is known in the United 
States. But members of Russia’s Generation 
X are not tike some of their American coun- 
terparts who until recently were said to be 
fearful of reduced horizons in a culture of 
downsizing and insecurity. Rather, thirty- 
something Muscovites like Samoukov are 
highly valued in the city’s burgeoning busi- 
ness marketplace — as long as they carry 
s kills from the old educational system and an 
adventuresome spirit needed in the new dog- 
eat-dog economy. It might be better to call 
them Generation Edge. 

“The main thing is that this generation has 
transformed itself in a very short time into 
the mold of thinking that says, ‘Nobody else 
is going to look after me,’ " wrote Andrei 
Kolesnikov, an editor at New Times 
magazine. 1 

Bom and raised in Soviet times, members 
of the generation were presented with an 
entirely new world just as they were starting 
to make a living. The universe they entered 


was unlike anything that had ex- 
isted before in Russia, not to men- 
tion the Soviet Union. New busi- 
nesses were orated under an 
entirely new economic system: 
banks, brokerage houses, bou- 
tiques, travel agencies, cellular 
phone and computer firms, trading 
companies — the flowering of late 
20th-century capitalism. 

Derisions of what to do in life 
were no longer to be shared with or 
imposed by die government. This 
generation would- have to make its 
own decisions. 

“We had to learn a lot in just a 
couple of years,” Samoukov re- 
called. “But there was one advan- 
tage. We would grow up with the 
system. It was like a second birth 
and a second education.” 

In the public eye. this generation 
■ is oversbauiowed both by older ones 
and younger ones on their way. 

Older people^ if they did not find 
refuge in formerly state-owned en- 
terprises that have been privatized 
and are making money, languish in 
bankrupt enterprises left over from 
the Soviet past. 

Muscovites in their early 20s are 
just beginning to make their mark 
with a certain rambunctious style. 

Their hazy memory of communism 
and preference for techno music, 
rollerblades, computer games and wild 
nightlife has earned them the nickname of 
the Rave Generation. 

Samoukov 's generation is likely to favor 
Italian fashions, but not the flashy “Miami 
Vice” style of New Russians, said Natasha 
Toumashkova. a consultant for executive 
recruitment companies. (The so-called New 
Russians are the nouveau riches.) People like 
Samoukov probably can afford a car, but 



never heard of bonds. Butisihce fh£ 
market was small when T started to 
work, I just kind ofgrewup wiih.it, 
he said, • • , 

The Ri^acoplu8^rff^« is full of 
people like Samoukoyt young, 
if modestly dressed, poring over 
computers and printouts, 1 waridog 
eight to 12 hours a day. : 

"Samoukov, who is. single, lives 
with, his parents in their-’70s«n' 
apartment. His favorite pub is calfed 
Rosie O'Grady's; he tikes ” 
wears Italian jeans, butwfi 



Han id ViffiwnVTIw «a*inpm 

Alexei Samo uko v at home in Moscow with his parents 


Toumashkova describes herself as a 
•“grandmother'’ of Generation X: She is 43 
and started in private business in 1986 — 
when predicting the vast changes ahead 
would have been considered science fiction. 
Her own itinerary foreshadowed the path to 
be followed by young people. 

She began to search for Russian business 
behalf of foreign companies. 


Jim * »» «« « ■ ■ — m 

grunge than dolec vita. - 
He has strong opjni( 

Russia’s economic policy;, 
too tight, the economy is 
centralized- “We 
much advice from 
don’t have enough ideas , of -j 
own.” he said. U'-. 

Samoukov takes -vaca^hi-.^ 
Spain and Italy and nde&.ljoreei la 
the Altai mountains- ter foft Kfea- 
golian border. “I liketo ridftj imag- 
ine myself a cowboy bo akL ; . 

His mother. Galina, 
died. Both she ahd San 
ther, Vladimir, worked 
developing radio and radar 
ogy for the railitaiy. C J 
off her pensioner’s 
caid to a visitor. “This _ 
transportation, but I don’t know wtf 
she said. ... ' 

Vladimir still works at tu& research In- 
stitute, although orders for equipment- are 
low. - ; ; •■ .. 

“Things are tough for teenjunahs tike my 
parents.’-’ Samoukov said. “It is not just the 
financial issue. There isjust nothing for them 
to do.’’ 

Galina prepared a dumec . of sausage. 


a 





talent on 

Samoukov probably can anora a car, our worked for an executive search company. ‘, (ed hlact 

may prefer the subway to avoid traffic. In and now is a consultant for several other such 
M<J<Sw’s inflated bousing market, they firms. “Mobility is something else that dis- 

rinauishes us from, the old ways, in which the meal, which was served in me kitchen. 

people stayed in one position forever,” she “Of course, we expotedAlexBito be a 
sutjrcu m W i* ia«i scientist, to work m academia. That was 

Alexei Samoukov seems to fit the profile 
precisely. After a stint at a small Russian 
bank, he took a job at Rinacoplus, an in- 
vestment company. But now he is preparing 
for another move, to a bigger company. “It 
has better career prospects for me,” he said. 

r naming the bond mark et was not terribly 
baid, he recalled. “Wheal was a kid, I had 


probably rent rather than buy an apartment 

Highly educated, they may take in plays or 
opera, and their preference in nightlife leans 
to. bora rather than discos where thumping 
music drowns out conversation. They may 
support their parents, whose income or sav- 
ings has been shrunk by inflation. 

“This is a big shift in our recent history,” 
said Toamaskkova. ’‘Until now, parents 
would in some way help their children well 
into adulthood.” 


what he was training for,” Galina said. 

Vladimir intervened. “If he’s satisfied with 
his work, we're also satisfied,!’ he said. 

“I’ve forgotten all my science in five 
years,” Samoukov said. “Frve years is a 
long time in science. It’s a lot of time in 
economics, too. and my mind is now filled 
with bonds and interest rates." 



r j t •’ 


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TABLOIDS 


PEOPLE 


They’re Back: Sex! Scandal! ‘Secrets of the Moving Duvet’! 


T" 1 HE golden boys of British 
J. fashion. 


By Dan Balz 

Washington Post Service 


T ONDON — The tabloids are back. 

JJt was just a month ago that the editors of 
Britain’s leading newspapers, humbled by 
criticism that they had hounded Diana, Prin- 
cess of Wales, to her grave, promised a new 
era of restraint Then along came the case of 
the Conservative Patty politician and his 
attractive teenage girlfriend: As they say, 
never mind. 

The politician probably should not be for- 
given much, based on the evidence now 
available, but he might have been forgiven 
for assuming that the new rules meant the 
private lives of public figures would be 
treated more gingerly than in the past. 

Instead, the papers, led by foe Sunday 
Mirror, have reached astonishing heights of 
invasiveness in their reports. The Minor has 
employed surveillance cameras, tape record- 
ers, a team of reporters and coverage taunting 
their prey to dare them to reveal more. 

“Diary of a Liar and a Cheat," read the 
headline in the Sunday Mirror Last week on a 
multipage spread. Another headline spread 
across two pages screamed, “He lied to his 
wife, he lied to his children, he lied to his 
voters, he lied to his leader.” His wife ap- 
peared before television cameras to declare 
that the teenager was a family friend who was 
helping her husband research a book about 
the intrusive tactics of the media. But the 
Mirror insisted it had more graphic evidence 
to back up the relatively tame photos it had 
published, along with salacious quotations, 
in their pages. 

Two days later, the politician resigned his 
seat, still protesting his innocence. By then, 
some of the tabloids had found another story 
of domestic unrest too juicy to keep from 
their readers. The coach of England's soccer 
team, fresh from a game that qualified the 
team for World Cup competition, announced 
that he and his wife of 1 8 years were splitting up. He 
was described as a man of Christian values, and 
there was no hint of another woman — or man. 

The tabloids had a difficult decision — coach or 
politician? There was only so much space on their 
front pages, after all. Meanwhile, the more re- 
spectable broadsheet newspapers, which showed a 
modicum of restraint early in the week, jumped and 
jumped hard. Given the acres of space they have 
eacn day, (hey didn’t have to make a difficult rail 



Kuil Vfcrnir/.IFP 

The papers are reaching new levels of invasiveness. 


about which of the two to feature on their front 
pages. Both stories were splashed across them. 

So what about those guidelines? 

Gay Black, director of the Press Complaints 
Commission, which promulgated the new rules of 
conduct last month, said he had nothing much to say 
about the current behavior of the press. “We can’t 
comment on the specific instance unless we get a 
complaint on it,” he said. “We've not had a 
complaint from the politician. We have bad a 


complaint relating in part to the other one, so 
we’ll need to investigate thaL But I cannot 
comment until we’ve done that thor- 
ly.” 

lack also pointed out that the new 
guidelines have not yet token effect and prob- 
ably will not until the end of the year. Until 
then, the old rules apply. The editor of the 
Sunday Mirror, Bridget Rowe, defended her 
paper’s coverage, saying it represented the 
best in investigative reporting and that the 
Conservative politician had it coming be- 
cause he had claimed no romantic involve- 
ment with the' young woman when initial 
accusations were made last spring. 

Editors who had been outspoken in their 
condemnation of the tabloid coverage of Di- 
ana and the royal family, and who suggested 
there was an element of hypocrisy in the new 
pledges, suddenly stopped talking as their 
newspapers pursued the story nearly as 
eagerly as the tabloids. 

But columnists denounced the tabloids. 
“Even a buffoon should be free from the 
prying of thepress,” read the headline over 
one article. Tne author, Natasha Walter, ac- 
cused the tabloids not only of pzying, but of 
being “outrageously out of step” with a 
society that prefers not to pass judgment on 
the private behavior of others, in or out of 
public life. 

Meanwhile, Charles Wilson, managing di- 
rector of the Mirror Group, accused the “re- 
spectable” press of being “perfect examples 
of hypocrisy” and predicted that “not even 
the strictest changes in the code of conduct 
will alter iL” Competitive pressure, he stud, 
is too strong. 

Still, the whole matter appeared ready to die 
down as the new week approached. Then 
came the Sunday Mirror again. On its front 
page was a grainy photo of a bedcover and a 
headline that read: “Secrets of the Moving 
Duvet” Inside was another install mem of 
deceit, betrayal and exposure. Claiming it had 
been accused of lying about the Conservati ve politi- 
cian, the newspaper defended its decision to publish 
more. The story revealed that a former aide had used 
surveillance cameras to tope an indelicate liaison 
between the politician and his gir lfriend 
Is that the end? The Sunday Minor article closed 
with a pledge: No more exposes about the politician 
“if he now admits that he Has lied.” Guidelines or 
no new guidelines, it’s still a -dangerous world out 
there for those who misbehave. 


John Galliano 
and Alexander McQueen, 
were named joint winners of 
the British fashion industry’s 
highest award. For the fust 
time in the 13-year history of 
the Designer of the Year 
award, the two winners had 
the n omin ations of both the 
industry's press and buyers. 
Both were previous winners. 

□ 

A former publisher of The 
New Yorker filed a lawsuit 
alleging that her boss at the 
literary magazine punished 
and fired her because she was 
pregnant- Diane Silberstein, 
41, said that foe magazine's 
president, Thomas Florio, 
cut her $340,000 salary nearly 
in half before eventually fir- 



auy 

ing her. Florio “implied that 
possible 


. . . ,s*iw liuaaflkap. 

YOUNG LOVE — Japan’s teen idol, Namie Arauro, 
smiling at the singer-dancer Masaharu Maruyama. 
Pop fans were reeling from the news that Amuro, 20, 
had secretly married the dancer, 15 years her senior-. 


it would be impossible for hex to balance her dynastv and, her diaries reveal, experimented 
work duties with foe increased demands of with LSD. In papers recently released by the- 
two children, the lawsuit said. Library of Congress, during the late 1950s anM 

early 1960s Luce methodically noted her obT 


□ 


The English National Ballet plans to honor 


early 1960s Luce methodically noted here _ 
servations and reactions to the drug. "The* 

~ - v - 1 ^ et P 13115 10 honor greatest awareness of LSD is this curiously!'"' — 

Princess Diana at a special performance Dec. ambivalent feeling chat man is so very dtf- 
8 of "The Nutcracker" that she had been ferent from all foe other species and yet one . , , 
scheduled to attend. It wiU bepreceded by a with all matter." she wrote. "Nature can dcM./, / I 
film on Diana s passion for ballet that will nothing awkward, or tasteless. Only foe hu- M / It iU g 

contain previously unseen footage. The ballet man spirit is capable of ugliness, ” "• 


contain previously unseen footage. The ballet 
company’s artistic director, Derek Deane, 
said foe Princess of Wales’s involvement as a 
patron "reflected her. great love and under- 
standing of ballet.” 


□ 


D 


4 ‘Keep Cool,” foe new film by the Chinese 


Buyers far outnumbered protesters when 
Larry Flynt. the publisher of Hustler, opened 
up shop for himself to sell copies of hi?, 
raunchy magazine in Cincinnati for foe first 
tune in 20 years. Magazine sellers the re had 


film director Ztong b£k SwaySShSSSSS.nf 

against Hol^ood bt^^ffice hiLs and attract- when Flynt was found ^guilty of pandering] 

modem-day drama has grossed 3 million yuan 
($361,000), said Gao Jim, director of foe 
Xingyiniian Movie Studios (fair produced the 


V w*™* wrnuivj Uioi piuuuucu LUC 

film. Although lacking the s uper st ar Gong Li, 
who played the lead role in most of Zhang’s 
earlier movies, the film stars the well-known 
local actors Jiang Wen and Li Baottan. 


■ j - - wuuac tuuvituon was 

Jumed, was die subject of a movie. “The 
People vs. Larry Flynt,' ’ that portrayed himaa 1 
a martyr for freedom of speech. 


□ 


h ll 5 le f s of one of Spice Girls, Geri. 
Halli well, forced foe British pop group to' 
cancel an appearance in Sweden — and avoids, 
a showdown with the Swedish media. Joup 

nfillCfC ha/1 4- i. . 




Every country has its own AW Access Number which 
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Just dial the AT&T Access Number for the country you’re 
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in the springtime. 


__AT&T Access Numbers 

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Swltifalawl* DMO-Rfr-MII 

1. Jus dial the OTT teas Number halted ttoutom a OS8M84011 

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3- Did the calling carf number lined 177-1BW727 

aboreiwrium*. ^ tnHtoMa<> 1«» 

AFRICA 

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