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PAGE 3' 


The World's Daily Newspaper ••• 

Paris, Monday, September 1, 

World Mourns the Teojfle’s Princess’ 

Charles Takes Diana’s Body Home From Paris 



]l*tl 'pv-irvijRi-uiir. 

Diana on a trip to Africa earlier this year. 

By Tom Buerkie 

htlrmalttiihil Herald Ir ihune 

LONDON — The body of Diana, Prin- 
cess of Wales, was brought back to Britain 
on Sunday by Prince Charles, and Prime 
Minister Tony Blair expressed a nation's 
gnef over the loss of "the people's prin- 
cess” after her storybook life ended tra- 
gically when .a car she was riding in crashed 
at very high speed in a Paris tunnel. 

The death provoked an outpouring of 
emotion here and around the world that 
underscored Diana's claim to the self- 
styled title “queen of peoples* hearts," a 
role she sought to carve out for herself 
through charity work over many years and 
intensified after her divorce a year ago from 
Charles, the heir io the British throne. 

Thousands of people, many in tears, 
gathered outside Diana's Kensington 
Palace home here and at nearby Buck- 
ingham Palace, leaving mountains of 
flowers, while world figures from President 
Bill Clinton to Mother Theresa paid tribute 
to her compassion and humanitarian work^ 
most recently on behalf of efforts to ban 
land mines. 

*‘i feel like everyone else in this country 
today, utterly devastated,” Mr. Blair said 
before entering church services in his 
Sedgefield constituency. “She was the 
people's princess, and that's bow she will 
stay, how she will remain, in our hearts and 
in our memories forever.'* President Nel- 
son Mandela, who played host to Diana on 
her recent visit to South Africa, re- 
membered her as “undoubtedly one of the 
best ambassadors of Great Britain.” 

President Jacques Chirac accorded Diana 
full military honors from the Republican 
Guard at the Paris hospital where she died, 
and then accompanied Charles to a military 
airport outside Paris on Sunday evening. 

“She was a young woman of our time, 
warm, full of life and generosity," Mr. 
Chirac said. Diana's body arrived at the 
Royal Air Force base in Northolt, where it 
was met by Mr. Blair and an air force honor 
guard. The body was taken by hearse to a 
private London mortuary. 

The accident occurred very early Sunday 
as Diana and her companion, Dodi al Fayed, 
who was also killed along with the driver, 
were seeking to elude or outrun a pack of 
photographers on motorcycles. 

The tragedy unleashed a wave of crit- 
icism of Britain's press and the armies of 
paparazzi who supply the newspapers and 
celebrity magazines around the world with 
pictures. Their attention over the past 17 
years made Diana arguably the most pho- 
tographed and recognizable person in the 
world, but in the end they appeared to 
literally hound her to her death. 

Diana’s brother, Earl Charles Spencer, 
spoke bitterly from his home in Cape Town, 
South Africa. “It would appear that every 
proprietor and editor of every publication 
that has paid for intrusive and exploitative 
photographs of her, encouraging greedy 
and ruthless individuals to risk everything 
in pursuit of Diana's image, has blood on 
his hands today,” he said. 

Foreign Secretary Robin Cook, who 
spoke during a visit to the Philippines, said 
that “serious questions will need to be 
asked if the aggressive intrusion into her 
privacy has contributed to this tragedy.” 
Other politicians were more hesitant, 
however, noting that the previous Con- 
servative government had railed in its at- 

See PRINCESS, Page 2 

Charles leaving church after news of Diana ’s death. 

The Royal Superstar 

Her Death Is Less a Morality Play 
Than a Modernized Greek Tragedy 

By Suzy Menkes 

Imematip/ial Herald Tribune 

LONDON — From the single flower laid beside palace walls 
to the grand tributes from world leaders, the heartfelt reaction to 
the death of Diana, Princess of Wales, comes from society’s 

• emotional gut. 

The outpouring of grief is a mixture of shock, at the sudden 
tragedy, anger at the waste of a young life, compassion for private 
' family anguish and sadness for public loss. And, mixed in with 
- that, the numbing guilt that we, with our voracious appetite for 
ownership of the "People’s Princess,” are somehow implicated 
in her end. All these emotions will be translated into concrete 
action in the following weeks and months.- the funeral and public 
_ mourning; a desire to protect the motherless princes; an urge to 
give continuing support to the princess's issues and causes, and a 

* debate abour unacceptable, intrusion inta the private fives- of 
public figures. 

But the death of die Princess Superstar, apparently on die cusp 
of an emotional tranquillity ihat had thus far eluded her. has a 
deeper resonance. It offers neither a fairy tale with an unhappy- 
ending nor a morality play with obvious heroes and villains, but 
rather a Greek tragedy rescrip red for modem tunes. 

The princess had long sincepasscd from being pan of the royal 
pageant — its scintillating and its darker side — to reach iconic 
status. She was up there with the figures that the world knows on 
first-name terms: Elvis, Jackie or Marilyn, who. like Diana, was 
36 years old when the reality of her life was enshrined in myth. 

In her transformation from the traditionally passive and pretty 

High-Speed Chase 

French Police Open an Investigation 
Into Role of Photographers in Pursuit 

By Craig R. Whitney 

Hew Hint Times Service. 

I’im*' Hmurl/ Vp-TVy IWtuvIV-m 

The wreckage of the car in which Diana and Dodi al Fayed were riding before the fata) crash in a Paris tunnel. 



: of the power of modern woman to steer her destiny. 

While men often (openly or privately) sympathized with 
Prince Charles when the princess went public about her rotten 

See DIANA, Page 2 

• Diana’s tragic death ended the 
life of a shy society girl who became 
one of the most glamorous and loved 
women in the world. Page 2. 

• Criticized by the British press, 
Dodi al Fayed was seen by friends as 
a gentle and decent man who cheered 
just about everyone he met Page 2. 

• "I always believed that the press 
would kill her in the end," Princess 
Diana’s brother. Earl Spencer, told 
reporters in South Africa. Page 3. 


- 0 

PARIS — French police opened a criminal investigation Sun- 
day to determine whether a chase by seven motorcycle-riding free- 
lance photographers was responsible for the car crash in an 
expressway tunnel along the Seme that killed Diana, the Princess of 
Wales, and Emad Mohamed (Dodi) al Fayed, her companion. 

Sunday evening. Prince Charles, the heir to the British throne 
and Diana's husband until their divorce a year ago, flew in from 
Scotland and sadly accepted her remains, in a plain wooden coffin, 
from President Jacques Chirac at Pitie-Salpetriere hospital. 

With Diana’s two sisters. Lady Jane Fellowes and Lady Sarah 
McCorquodale, Charles then flew back to a shocked and grieving 
Britain with the body. 

Mr. al Fayed, 41 , who had been linked romantically with Diana 
for several months, died instantly at 12:35 A.M. French police 
said, when the powerful black Mercedes 600 sedan in which they 
were riding from dinner at the Ritz Hotel to an apartment in the 
fashionable 16th Arrondisseroent was reduced by the crash to a 
compressed mass of shattered glass and twisted metal. 

The driver, an employee of the hotel, which is owned by Mr. al 
Fayed’s father, Mohamed, the Egyptian-bom owner of the Ritz 
as well as of Hatreds department store in London, was also 
killed. Diana’s bodyguard, identified by French hospital officials 
as Trevor Rees- Jones, was injured but not in critical condition. 

The senior Mr. al Fayed identified his son’s body at the main 
Paris morgue this morning and would take the remains to Britain 
for burial, a spokesman in London said. 

Diana, who suffered a crushed chest and head injuries, died of 
cardiac arrest at the hospital, where ambulance workers rushed 
her after prying her body loose from the wreckage. 

Surgeons opened her chest and found massive internal bleed- 
ing from her heart arteries, but were unable to restore circulation 

See PARIS, Page 2 

Will Asia’s Tigers Roar Again Soon? 

Fundamentals Argue for a Rebound Even Without Western Investors 

By Sheryl WuDunn 

He* York Times Sen-ice 


TOKYO — Once upon a time, Asian 
stock markets were the hottest in the 
world, sizzling like oil in a wok. 

An investment strategist could sound 
like a visionary simply by murmuring, 
"In Asia...” Asian families sometimes 
moved in one generation from an ox cart 
to a Mer cedes- B^nz, from peasants to 
billionaires. Eight of the world’s 10 most 
expensive cities were in Asia. The num- 
ber of Asian companies, excluding Japan, 
listed on the New Yak Stock Exchange 
went to 30 this year from 2 in 1988, and 
American money in Asian funds bal- 
looned eighteen-fold in five years. 

Then the wok spilled, and many in- 
vestors got burned. The crisis began in 
Thailand this spring and has spread 
throughout Southeast Asia, felling cur- 
rencies and markets alike. 

Just last week, Malaysia curbed the 
selling of stocks, setting off a region- 
wide market convulsion that sent the 
benchmark Philippine market index 
tumbling 9 percent Thursday — its 
biggest one-day fall in a decade — and 
the Hong Kong index cascading nearly 
5 percent Friday. 

. Now, the Thai market has lost 70 
percent of its 1 value from its peak in 
1994, and some analysts are worrying . 
aloud about how secure the foundation 

is under the Asian miracle, under all 
those new skyscrapers built in the last 
couple of decades. 

In short, has the Asian boom fizzled? 

In the long run, the miracle is prob- 
ably intact But for a while, “it’s sort of 
a brave new world,” said Pauline 
Gately, a strategist for Asian stocks at 
BZW Securities fiac. in Hong Kong. 
"The closet is open and the skeletons 
are beginning to come out. 

To be sure, in China, Hong Kong and 
Taiwan the economies are still galloping. 
But fa Southeast Asia, and even South 
Korea, the outlook is the bleakest it has 
been in years. Once-barreling economies 
are tripping up, and the region has 
entered a new era of currency volatility. 

Malaysia Turns 40 

. Malaysians celebrated 40 years 
of independence Sunday with fire- 
works and a parade featuring thou- 
sands in a colorful parade. In a 
speech marking the anniversary. 
Prime Minister Mahathir bin Mo- 
hamad suggested that speculators 
were ready to destroy the econ- 
omy’s foundations following the 
precipitous decline in the country s 
stock market and currency- Page 6. 

The Malaysian ringgit, the Thai baht, the 
Philippine peso and the Indonesian rupi- 
ah are among the currencies that have 
depreciated recently. 

More disturbing, Asian countries can 
see by looking at Japan that there is 
nothing inevitable about maintaining 
dizzying growth rates. Tokyo has shown 
that economies can hit the wall like 
marathon runners. Despite assertions for 
years that the Japanese recovery is just 
around the comer, it remains there still. 

While investors who have seen their 
holdings plunge may not find their spirits 
so resilient, most corporate executives 
and economists here are unruffled. There 
may have been some concern in the 
financial community, but no one has 
rushed out to buy up rice, as the Hong 
Kong Chinese did in 1983 when the 
Hong Kong dollar plummeted. 

Instead, analysts emphasize that the 
economic troubles are a natural con- 
sequence of the surge and bring with 
them important advantages. 

"It’s an Asian syndrome," said lan 
Lui, managing director at Indosuez Asset 
Management (Singapore) Uj± “It’s like 
someone who has been running too fast. 
They have to collapse and take a rest" 

William Belchere, head of currency 

See ASIANS, Page 6 



Algerian Dissident Asks for UN 6 Dialogue 5 ^ ^ 9 * 

ALGIERS (AP) — The founder of Opinion Page 8 . 

INTEHNAT onal „ the Islamic Salvation Front, Abassi Sports Pages 30-32. 

Some Africans Oread trench rullout Madani, has urged the United Nations ; 

flurniear. PaoaS 10 "open a serious dialogue” to end Sponsored Section Pages 17-29. 

f J * ER I P f AS the fiTC-snd-a-half-year insurgency, built for business: south Korea 

Fewr JreEntmng VS. _ H e said that he was "ready to Wh lnelntmmku Pagr ,s. 

EUROPE Page 7. an appeal to bring an immediate end to 

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Cairo Convicts Three Israeli Arabs and an Egyptian as Spies 

By John Lancaster 

llaxkwnun Art* Service 

JERUSALEM — An Egyptian court 
convicted an Israeli Arab on Sunday ot 
espionage charges and sentenced him 10 
1 5 yearsat hard labor, stirring outrage in 
Israel and dealing another blow to the 
already shakv relationship between Is- 
rael and one of its most important Arab 

convicted on 
charges that he had tried to ranm aw 
Egyptian co-worker at an Israeli-owned 

textile plant in Cairo to collect infor- 
mation on Egypt’s economy for Israel s 
intelligence service, the Mossad. 

Key evidence in the case consisted 01 
women’s lingerie that Egyptian pros- 
ecutors said had been soaked in in- 
visible ink for use in transmitting the 

data. ...... , 

Though the charges widely believed 

in Egypt, where public opinion remains 
fervently anti-Israel despite the 18 years 
of formal peace between the two 
countries, they were ridiculed by 
Israeli officials, who denounced the 


case as a political show (rial. 

Prime Minister Benjamin Netanyahu 
denounced the conviction of Mr. Azam 
as "an outrage” and telephoned Pres- 
ident Hosni Mubarak to ask for a par- 

Egyptian officials previously have 
said that Mr. Mubarak would not get 
involved in the case until the judicial 
process had run its course. 

The State Security Court also con- 
victed Mr. Azam’s alleged Egyptian 
accomplice. Emad Abdel Hamid Ismail, 
and sentenced him to life in prison. 

Two Israeli Arab women — Zahra 
Youssef Greiss and Mona Ahmed 
Shawahna — both of whom were tried 
in absentia, received life sentences for 
their puiponed role in the plot. 

The case comes at a time when re- 
lations between Israel and Egypt 
already are at one of their lowest points 
since the two countries signed a peace 
treaty in 1979. 

' Even before last year’s election of 
hard-line Prime Minister Netanyahu, 

See SPY, Page 6 

New IHT Print Site 

The International Herald Tribune 
added its 14th worldwide printing 
site Sunday os it began printing in 
Israel in a joint venture with the 
Israeli daily newspaper Ha’aretz. 
The paperincludes the entire edition 
of the Herald Tribune plus a daily, 
four-page section in English that 
includes local news, opinion and 
entertainment listings. Page 1 1. 



Death of a Princess / The Tragedy in Paris 

Diana: From Timid Teen To Glamour Princess 

By Warren Hoge 

New York Times Service 

LONDON — The death at 36 of Di- 
ana, Princess of Wales, in a car crash in 
Paris on Sunday brought to a tragically 
premature close to the life of someone 
who had gone from being a shy young 
society girl to one of the world’s most 
glamorous and attention-getting wom- 

Her marriage to Prince Charles, heir 
to the British throne and 12 years her 
senior, on July 29, 1981, was one of 
those events that people recall as a mark- 
er in their own lives, a moment of old- 
fashioned sentiment and royal splendor 
seldom seen in this century. An esti- 
mated 1 billion people around the world 
watched the ceremony, a glittery oc- 
casion that fully merited use of the over- 
employed words "fairy-tale romance.’ ’ 

The unraveling of that marriage was 

just as public, marked by a series of 
confessional episodes that were as taw- 
dry and tasteless as the circumstances of 
the joining of their hands at St- Paul’s 
Cathedral had been grand and timeless. 

From the prince came admissions of 
adultery and embarrassing tape-recor- 
ded endearments to his mistress, Camilla 
Parker Bowles. 

From Diana came accounts of her 
descent into eating disorders, self-mu- 
tilation and suicide attempts and retal- 
iaiory adulteries with men ill-chosen for 

Though the marriage ended officially 
with their divorce a year ago Aug. 28, the 
rivalry for public approval continued 
until her death. 

This year, Diana had made trips to 
Angola and Bosnia in a high-profile 
campaign against land mines, and in 
recent weeks she had posed while on a 
Mediterranean vacation with her friend. 

Em ad Mohamed Fayed, known as Dodi. 
in an apparent effort to show the world 
that the once-troubled young woman 
had found personal happiness. 

Prince Charles, for his pari, held the 
first photo calls at the royal family's 
vacation home in Balmoral since the 
early days of his marriage, making a 
soign6 appearance in kilt and tattersall 

At his side were the couple’s two 
sons, Willliam. 15, next in line for the 
monarch after his father, and Harry, 12. 

It was a competition conducted by 
photo opportunity, and in Diana’s case 
an attempt to turn to her advantage an 
irritant that sbe often complained about, 
the obsessive involvement of the tabloid 

E ress with her every move that seems to 
ave played a role in her death. 

After years of loneliness and feelings 
of rejection, Diana struck friends this 
year as having acquired a long sought 

Dodi Offered Diana a Different Family 

Al Fayeds Symbolized Contradiction of Successful Outsiders in U.K. 

self-regard and hope for the future. 

In May. Lord Attenborough, the actor 
and director, said: “Once she was a shy 
young woman who was suddenly 
thrown into a bear pit Now you see her 
confidence, self-assurance and outgoing 

Diana Spencer was born July 1, 1961, 
in Sandringham, Norfolk, daughter of 
the 8th Earl of Spencer, and she was 
brought up on the family estate, Aitborp, 
in Northamptonshire. 

Although she was called a ‘‘com- 
moner’’ right before her marriage, she 
was a member of an old English family 
with numbers of dukes in its past, and 
she gained a sizable financial inherit- 
ance while still in her teens. 

The product herself of a broken mar- 
riage, she became a retiring girl, so quiet 
as to accept only non-speaking parts in 
school plays. 

The woman who would one day greet 
the public with a globally famous bright 
smile then faced die outside world with 

By Youssef M. Ibrahim 

‘ New York Tones Service 

LONDON — On the day he died, the 
News of the World, Britain’s largest- 
ciiculadon weekly, claimed the Egyp- 
tian millionaire Emad Mohamed (Dodi) 
al Fayed was unfit to marry into Britain’s 

In a “royal exclusive,” it asserted Sun- 
day that Diana's 15-year-old son William 
was ‘ ‘horrified” at the notion that a two- 
month romance between his mother and 
41 -year-old Dodi, as her new love was 
known, was beaded for matrimony. 

Dose friends, relatives and associates 
of the couple's say nothing could be 
further from the truth. If anything, they 
say, the Muslim Arab al Fayed family. 

trasted sharply with the way the royal 
family and Britain's notorious tabloids 
shunned die princess after her divorce 
last year from Prince Charles. 

For his part, Mohamed Fayed, the 
Harrods boss, is an integral part of’ the 
story, too. He bought Harroas 12 years 
ago, tripling its value to nearly $5 billion 
since. His other properties, including the 
legendary Ritz Hotel in Paris, Punch 
magazine, a soccer team, many yachts 
and multiple castles and homes, make 
him a hugely successful businessman 
and manager whose sense of humor, 
including a healthy dose of profanity, 
appealed to Diana. 

appealed to Diana. 

Yet, even though the “House of Har- 

rods” is clearly a pillar of English com- 
merce Mr. al Fayed, his brother Ali, who 

one of Britain's wealthiest, offered the owns Turnbull & Asser, one of the Bri- 

Princess of Wales and her two sons, Wil- 
liam and 12-year-old Harry, a welcome 
escape from the cold, remote world that 
enshrines a declining British aristocracy. 

Diana, who had wanted to be “a 
queen of hearts.” indeed strove to en- 
velop her children in the warm, down-to- 
earth fun world Mr. al Fayed inhabited. 

tain’s finest shirtznakers, and his son 
Dodi have been consistently denied Brit- 
ish citizenship for reasons unexplained. 

They were outsiders — tolerated bat 
not embraced. It was with delight, there- 
fore, that the senior al Fayed welcomed 
die relationship of Dodi with die prin- 
cess. And the two were alike. Dodi, a 41- 

Such have been the undercurrents of a year-old playboy, was raised amid fab- 

love story which more than anything in 
recent times flushed out contradictions 
of an evolving British society. It pits an 
ascending service economy where ac- 
complishment matters more than ped- 

igree against a discredited old empire 
fish tins to hold down immisrants. who 

fighting to hold down immigrants, who 
in the past decade have made this court- 

5 f's institutions, from small groceries to 
arrods department store, better, faster 

Hanods department store, better, faster 
and wealthier. 

ulous wraith. He did not excel at the 
French La Salle high school in his native 
Alexandria before moving to Swiss 
private schools. He did a two-year stint at 
Sandhurst, the British military academy. 

He also dabbled at Harrods. manning 
various posts but never went to work for 
the store. And he participated in funding 
the 1981 Oscar-winning film “Chariots 
of Fire,” “The World According to 

Now that both the princess and her 
companion have died, Britain has begun 
to examine the moral of this story and in 

Garp,” “F/X” and "Hoot” 

Otherwise, he threw lavish parties, 
smoked expensive cigars, dated beautiful 
women and was briefly married for eight 


the days to come will question many of months. Dodi was die only son of a brief 

the issues springing loose from a tragedy 
that has deeply shaken much of the coun- 
try and most of the world. 

‘ 'He told me last night he was going to 

marriage between Mohamed al Fayed 
and Samira Kashoggi, the sister of the 
billionaire arms dealer Adnan Kashoggi 

Dodi al Fayed, the Harrods’ heir, 
leaving his home In London during 
August. The Egyptian was little 
known until recent weeks, when 
he started dating Princess Diana. 

an elfin blush and a downward gaze. 

The future fashion icon wore her 
strawberry blonde hair in upward 
swooping bouffants and favored tulle, 
lace, ruffles and beribboned full-skirted 

She passed up the world of debutante 
night clubbing to become a private 
kindergarten teacher, presaging the par- 
ticular affection for young people she 
would demonstrate as a public person 
and the unquestioned devotion she 
would show her two children. 

Her son William was born in June 
1982, thus providing continuity to the 
monarchy and elevating Diana to the 
position of mother of a king-to-be. By 
1986, the first press stories about cracks 
in the marriage appeared in the press. A 
revelatory biography of Diana said that 
the marriage started to break up when 
Prince Charles had resumed his rela- 
tionship with his married friend, Camilla 
Parker Bowles. 

The book. “Diana: Her True Story” 
by Andrew Morton, published in June, 
1992, said dial feeling “trapped in a 
loveless marriage,’ ' she had started dat- 
ing a cavalry officer, James Hewitt, con- 
ducting an affair that would have dis- 
astrous consequences when he gave her 
up four years later and produced a bod- 
ice-ripping kiss-and-tell account of it 

The royal couple had few common 
interests. ' Charles loved borses, his 
garden and traditional architecture; she 
loved buying clothes. listening to pop 
music on her Walkman and gossiping on 
the telephone. She was by this time 
suffering from the slimmer’s disease, 
bulimia nervosa, and had made a number 
of suicide attempts. 

People noted that the Waleses seldom 
made appearances together and that 
when they did they were sullen and did 
not appear to communicate with each 

To the outside world, however, the 
girl in the frilly modest-maiden dresses 
and modified bowl hairdo had been 
transformed into a fashion plate whose 
every style change influenced the way- 
well-dressed women around the world 
stepped out. 

Diana chatting with a disabled teenager in Angola in January 

’There were frequent reports and jnsr 
as many denials from Buckingham 
Palace thar the marriage was in trouble 
and that they were thinkin g of splitting 

who was prime minister at the time, told 
a packed House of Commons that the 
couple had agreed to separate. 

In 1994 Charles gave his extraordi- 
nary interview to the BBC in which he 
admitted adultery and dismissed sug- 
gestions, allegedly from Diana, that he 
was not fit to be king. 

She retaliated in 1995 with her equally 
bold television interview in which site 
confessed her own extramarital relation- 
ships. her anger at the royal family and 
her feeling that Prince Charles would not 
make a good king. 

There were widespread reports that 
she wanted to see the crown go directly 
to her son William, know to the British 
as Wills. 

In the divorce she had to give up the 
honorific Her Royal Highness, the title 
that separates the royal family’s inner 
circle from other nobles and aristocrats. 
But she was able to keep the title Prin- 
cess of Wales, and sbe obtained a lump 
sum payment of S22J5 million along 
with 5600,000 a year to maintain her 

She also got to keep her five-bed 
room, four-reception room apartment aL 
Kensington Palace. 

In Iter television interview, Diana said 
she wanted to transform herself into ther 

s hearts.” That seemed 

to be the thrust of her last year as she 
focused in on the charities she cared about 
and traveled the world to war and poverty 
zones in support of her favored causes: 

When some of her involvements 
brought rebukes from British political 
figures that sbe was meddling in partisan, 
areas off-limits to members of the rqyaF 
family, she replied, ‘ ‘I am not a pohtkaL 
figure. I am a humanitarian figure,- and! 
always will be.” 

Hus past June, she signaled her desire 
to shed her image as a clothes horse: 
which critics said saw as profligate ano- 
mindless, by selling 79 of her most ex-, 
pensive dresses at a charity auction afc 
uistie’s in New York. • 

That she succeeded in changing her 
image was borne out Sunday in the num- 
ber of tributes by charity groups that she. 
bad identified with - and with young- 
women who have endured some of the 
same trials that sbe did. 

“Diana,” said Deanne Jade, founder 
and principal of the National Center fog. 
Eating Disorders, “appealed to the priot 
cess in every woman.” 

said Hassan Yassin, a US of Mrai PRINCESS: Worldwide Mourning for Untimely Death of Diana DIANA: The First Princess Superstar 

Fayed’s mother, Samira. “I felt that C7 *' 

Fayed’s mother, Samira. “I felt that 
Dodi had found himself in her and she in 
him.” The Saudi businessman was 
speaking from the Ritz Hotel in Paris on 
Sunday morning, where the al Fayed 

Continued from Page 1 

tempt to draft a privacy law and that 
Diana had died in France, whose tough 

clan was gathering in the aftermath of privacy laws did little to protect her. 

the tragedy. It all began a few weeks ago 
when Dodi's father, Mohamed al Fayed, 
invited Diana and her two sons to his 
luxurious home on the French Riviera 

Diana and Mr. al Fayed were return- 
ing to Mr. al Fayed’s Paris apartment 
after dining at the Fayed-owned Ritz 
Hotel when their car, a chauffeured Mer- 

"appalling and quite needless.” Mr. al 
Fayed said, “The world has lost a prin- 
cess who is simply irreplaceable.” 

The royal family was on its traditional 
summer vacation in Balmoral, Scotland, 
when news of her death arrived. Charles 
woke their two children, William, aged 
15, and Harry, 12, to break the news. 

It was not immediately clear what 

and. Dodi was there, too. Although the cedes, crashed into the wall of a tunnel funeral arrangements would be, but gov- 

two knew each before, that is when they under the Place d'Alma, along the Seine 

fell in love. 

“Doth was very kind, very gentle and 

in central Paris, while trying to elude 
photographers. They were traveling, ac- 

a decent man who cheered the lives of cording to witnesses, at very high speed 

everyone he met,” Michael Cole, aclqse 
associate of die al Fayeds and spokes- 
man for the family, said in interviews 
Sunday. “He had great regard for the 
princess and her family. They had a 
wonderful happy holiday. They sat 
down and had coffee and croissants. She 
never bad a family like this. Mr. al Fayed 
loved the princess and she loved his 
company. She suddenly saw what it 
would be like to be a part of a warm, 
caring family" 

This appraisal, repeatedly asserted 
Sunday by friends and relatives, con- 

and it is not known exactly what caused 
the car to hit the side of the tunnel. 

Diana, 36, died at thePitie-Salpetriere 
hospital in Paris around 4 A.M. Sunday 
morning after doctors labored for more 
than two hours to try to stem bleeding 
from her massive injuries. Mr. al Fayed 
and the driver were declared dead at the 
scene. Trevor Rees- Jones, Diana’s 
bodyguard, was expected to recover 
from his injuries, doctors said. 

Mohamed al Fayed, the Egyptian- 
born businessman, H arrods 's owner and 
father of Dodi, decried the deaths as 

eminent officials indicated there would 
not be a state funeral since Diana was no 
longer a member of the royal family. 

It was a tragic and ironic end to a Life 
that has transfixed Britain and much of 
the world since Diana Spencer burst onto 
the scene 17 years ago. 

The product of a broken family with 
close ties to the House of Windsor, Di- 
ana, then 19, was working as a kinder- 
garten teacher in London when she be- 
came engaged to Charles, 12 years her 
senior. Their 1981 wedding was an ex- 
travagant display of royal pageantry that 
uplifted a recession-bound nation. 

But the couple’s differences in ex- 
pectations and attitudes quickly became 
apparent. Diana spoke in a 1995 tele- 

vision interview about her depression, 
her struggle with the eating disorder 
bulimia, and several attempts at suicide. 

According to her own words and those 
of close acquaintances, Diana had begun 
to find some of the happiness she lacked 
in marriage with Dodi al Fayed. Their 
sudden romance in the past two months 
bad been the story of the summer here. 

A photograph of the couple kissing 
while vacationing at Mr. al Fayed's home 
in the south of France in recent weeks 
reportedly sold for S200,000, a figure that 
explains the behavior of photographers. 
Steve Coz, alitor of the National En- 
quirer, said on television that photographs 
of the crash scene were being shopped 
around for $1 million but that the Amer- 
ican tabloid had turned the offer down. 

President Bill Clinton, who interrup- 
ted his vacation on Martha’s Vineyard to 
express condolences, said he and his 
wife. Hillary, "liked her very much.” 

“We admired her work for children, 
for people with AIDS, for the cause of 
ending the scourge of land mines in the 
world, and for the love of her children. 
William and Harry." he said. 

Continued from Page 1 

PARIS: Police Investigating Photographers ’ Role in Fatal High-Speed Chase and Crash 

Continued from Page 1 

and pronounced her dead at about 4 
A.M. Paris time. 

Crowds of tourists and Parisians 
gathered at the accident scene in hot 
sunshine on the last day of France’s 
annual August vacation as news of the 
terrible event spread around the city. 

formal detention, which allows them to 
be held 48 hours without charges, after 
questioning them ail night. 

“The inquiry will establish in more 
detail the role that these people may have 

played in the cause of the accident and 
how they behaved at the site,” a statement 

how they behaved at the site,” a statement 
by the Paris prosecutor's office said- 

inciting the paparazzi all the more. 

She and Mr. al Fayed arrived at Le 
Bourget airport north of Paris on Sat- 
urday afternoon from Sardinia, where 
they had sailed aboard Mr. al Fayed's 
yacht from the French Riviera. 

Some, like many prominent French 
id other European officials, blamed the 

Legal experts said that detectives 
>uld look into whether the motorcycle 

The photographers, alerted by radio, 
waited for them to arrive at the Ritz, the 

and other European officials, blamed the 
deaths on a media frenzy created by 
relentless photographers intent on doc- 
umenting the romance between this un- 
happy former member of the royal fam- 
ily and an upstart millionaire commoner 
whose family had often upset Britain's 

“The ones who were pursuing her 
should be prosecuted to the full extent of 
the law,” said Patrick Bouviy, 28, who 
came in from suburban Bobigny to de- 
posit three roses, one for each of the 
dead, near the site of the accident, where 
a riverside expressway takes a slight jog 
to the left and passes under the Place de 
I’ Alma, not far from the Eiffel Tower 
across the Seine. 

Hundreds of other mourners went to 
the hospital, on the Left Bank near the 
Gare d’Austerlitt, to deposit banks of 
flowers at the entrance. 

Police did not identify the photo- 
graphers except by their nationalities, 
six French and one Macedonian, all said 
to be commercial photographers work- 
ing on commission for photographic 
agencies. Authorities placed all seven in 

would look into whether the motorcycle 
pursuit of the Mercedes had contributed 
to causing the accident, and probe 
whether the pursuers had violated 
French laws requiring immediate wit- 
nesses of an accident to try to give aid on 
the scene. Some reports said that the first 
photographers on the scene had snapped 
pictures instead. 

In an interview published in the 
French daily Le Monde last week, Diana 
said the British press was ' ‘ferocious” in 
its relentless pursuit of her. In her place, 
anyone in her right mind would have left 
Britain long ago, she said. ‘ ‘But I can't. I 
have my sons.” The two princes, Hany. 
12, and William, 15, were told of their 
mother’s death by Prince Charles. 

But Diana knew how to manipulate 
the celebrity-hungry press for her own 
purposes, gaining widespread sympathy 
by baring her marriage difficulties in an 
interview with BBC television two years 
ago. More recently, she teased photo- 
graphers who had tracked her and Mr. al 
Fayed to southern France earlier this 
month by promising a big surprise soon, 
making many wonder whether the 
couple planned to marry and 

luxury hotel on the Place Vendorae, and 
followed Diana on an errand to the 
Champs-Elysees at about 8:30 Saturday 
night, witnesses said. 

The couple dined at the Ritz until 
about midnight, according to witnesses 
who told French radio that a Land-Rover 
with tinted windows took off from the 
hotel then and headed toward Place de la 
Concorde and the 16th Arrondissement 
The al Fayed family also has a long-term 
lease on the villa that belonged to the 
Duke and Duchess of Windsor in the 
Bois de Boulogne. 

They may have been trying to throw 

the photographers off the scent. Mr. al 
Fayed and Diana, who police sources 
said were not wearing seat belts, got into 
the back seat of the Mercedes a few 
minutes later and went in the same di- 
rection as the earlier car. 

Seven photographers mounted much 
less powerful and speedy motorcycles or 
motor scooters and took' off in pursuit. 
Police and others speculate that the Mer- 
cedes driver may have tried to outran 
them before the photographers could see 
where the couple was headed. 

All that police would say Sunday was 
that at about half past midnight the Mer- 

cedes. traveling at what some guessed 
might have been 90 miles U50 kilo- 
meters an hour) down the westbound 
lanes of the main artery on the right bank 
of the Seine, struck one of the square 
concrete pillars in the tunnel's dividing 
lane, then hurtled into the right concrete 
wall, underneath the Place de I’Alma. 

The speed limit in all of Paris is 50 
kilometers (30 miles i an hour, and at this 
point it is impossible to know why the 
driver was going so fast or why he lost 
control. People living in the area heard a 
long screech and a crash and saw the 
photographers arrive. When the police 
arrived, according to some witnesses, 
they gave some of the photographers a 
pummeling before taking them, two mo- 
torcycles and a scooter into custody. 

Diana was extracted from the Mer- 
cedes, so badly damaged that the ra- 
diator was pushed back into the pas- 
senger compartment and the roof 
crashed in. She was treated at the scene 
then rushed to the hospital at 2 A.M. 

On arrival al the hospital. Diana "ap- 
peared to be in serious hemorrhagic 
shock, originating in her thorax, and 
soon afterward, she had a cardiac ar- 
rest.” said Dr. Bruno Riou, who headed 
the team of surgeons. “Her chest cavity 
was urgently opened up, revealing a sig- 
nificant wound to her left ventricle. De- 
spite a closure of the wound and an 
external and internal cardiac massage 
lasting two hours, no effective circu- 
lation could be re-established, and death 
was noted at 4 A.M.” 

marriage, women cheered her on. She 
deliberately took the dangerous decision 
to move her life into the fast lane — not 
just with her penchant for jet-set life over 
the stuffiness of the royal court, but in 
her willingness to bare her soul about her 
emotions, her bulimia and the infidel- 
i lies- of her husband and herself. 

Her critics will see in this a streak of 
self-destructiveness that foreshadowed 
the tragic ending. 

If Diana's story reads like a soap 
opera, she contributed to the screenplay. 
By so obviously enjoying her cover-girl 
status, and inviting the world to share the 
roller-coaster ride of her personal life, 
she became the ultimate celebrity sym- 
bol of a media-saturated age. 

Diana was, in fact, the first media- 
savvy royal, a television princess who 
honed her image to the small screen 
rather than the big crowd. 

Queen Elizabeth had, it is true, in- 
vented the idea of the royal "walkabout,” 
but her dignity and restraint put a glass 
wall between herself and her subjects. 

Diana became master of the one-on- 
one encounter — not just with the sick 
and distressed, but also with a face drawn 
from the crowd. And while this made 
great television and newspaper pictures, 
it also had an enormous popular impact. 

From the reaching out, literal and fig- 
urative, grew Diana's role as a quasi- 
saint Iy figure, whose way of commu- 
nicating with the old. the young, the 
victims of AIDS or land-mine injuries, 
crossed barriers of age and language. 
Instead of the post-Victorian royal im- 
age of a family steeped in bourgeois 
values overlaid with pomp and circum- 
stance, Diana appeared to be reinventing 
earlier mystical concepts of kingship, 
when die “laying on of hands" was part 
of any royal progress. 

In an age when conventional religion is 
often abandoned or deemed inadequate, 
this “Diana-worship” fulfilled a need. 

And whereas it might have seemed 
mawkish or weird, people believed in 
Diana because she was so obviously 
searching for answers for herself. Her 
unhappy marriage and its aftermath 
were filled with visits to psychics, psy- 
choanalysts. faith healers and clairvoy- 
ants (most recently with Dodi al Fayed, 
who was killed in the same accident). 

Diana therefore became not one of 
■them'' — a distant royal with a gra- 
cious interest in ordinary folk — but one 
of “us." 

In every facet of her life, she appeared 
to mirror the norm in the late 20th cen- 
tury — especially for her gender. 

She was a tireless mother who turned 
out to have come from a dysfunctional 
family. People saw her hugging her kids 
and remembered the story of how her 

own childhood was haunted by to: 
memory of her mother's departing foot* 
steps crunching down the drive. ! 

From “Shy Di,” whose sweet side- 
long glance made her look liken startled 
fawn, she morphed into a business per-* 
son and working mom, whose caused 
were big issues In which she proved that 
one person could make a differmce. .'-:/!^ 
Her time off was also like that of r 
ordinary folk. Ignoring royal etiquette:-. .. 
the princess threw herself into races at 
the children’s school sports days^ He* ■ 
vacations were not behind castle walls;.' 
but a glamorized sun-and-sand version 
of other people's holidays. . :.'* v 

She was venerated for her extraor^ 
dinary, charismatic beau ty, elegance and 
style — but then revealed that her ex-" 
tenor was as much a facade as her fairyr. 
tale romance with the Prince of Walesi 
Then she rebuilt her body and her cor# * , ‘ 1 
fidence at the gym, as though to provd- 
th a t glamour is something that any wonri: 
an can aspire to. 

Even her revelations about her love 
affair with James Hewitt and her recent: ; 
flaunting of an intimate relationship cani f - 
be seen as a mirror image of the "girih'ri 1 '' 
power” that dominates the 1990s. 5 ’ 

Diana’s presentation of herself as tr ' 
sexual being was an affirmation of the 
reality of modern women's lives -r- the' t 
diametric opposite of the image of the ! 
innocent and virginal princess sacrificed - 
on the altar of royal conformity in her | 
1981 marriage. I 

How much of all Diana's life was 1 
about manipulation through the media to ! - 
feed the fantasies of an adoring public? ■ 

In recent weeks, comparisons drawn be- ! 
tween Diana’s relationship with the play- > 
boy Mr. al Fayed and Jackie Kennedy’s ; 
relationship with Aristotle Onassis sug- • 
gest that people were not entirely happy j 
with this picture-perfect romance. 

By turning so much of her life into a • 
photo op, she reaped the bad harvest, of ! 
complicity with the media. 

Y et the princess, even stripped of her . 
official royal status, had still seemed the • ’ 
best hope of the monarchy for giving) 
itself a purpose, a position and above all ! 
a coherent image in the modern world. ; 
The reaction of the royal family to her! 
death — its ability to express the erao- ■ 
tional grief of the public — may deter-! 
mine its status and even its survivaL 
When the young Queen Elizabeth D ; 
came to the throne in 1 953, symbolizing , 
the hope of renewal in a postwar world, ■ 
her prime minister, Winston Churchill, ! 
called her “a flash of color on the hard 1 
road we have to travel.” He said, “We! 
don’t know how lucky we are to have* 

heT ” . !> 
In Britain and the wider world, most <fe- 

ordinaiy people would echo those sen- ■ 
timents about Diana and feel that a light ! 
is extinguished with her death. 



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P ea«h of q Princess / The Tragedy in Paris 

Public Fury Is Aimed at Tabloids 


? Alw ays Believed That the Press Would Kill Her in the End’ 



By Sarah Lyall 

New >i)rt Times Service 

» LONDON — ‘ ‘I always believed that 
we press would kill her in the end,” 
•Tincess Diana’s brother, Eari Spencer 
^id bitterly outside his front gates in 

P*a»Vi Tnnn r ..... . . 

rfeSv^a^th! n hashing a stream law, it would nothave prevented the sort 
uncomfortably. ^ reponers shuffled of chase that led to Diana's death, said 
While the tabloids and indeed all of 
British news media bore the brunt of the 

. •Mwwumui lut 

SSS,’ '■*“ - particular 

** - — ’ — “Miiuiv ao 

a PP^ tlte for looking at them. 

^But on Sunday, the uneasy partner- 
ship between the newspapers and their 
vast readership fell apart, and the fact 
that Diana often seemed to use the 
as much as '* 

Alan Rusbridger. editor of The Guard- 
ian. a broadsheet newspaper, who feels 
that the tabloids often go too far in 
invading people's privacy. 

“I’m not sure that any privacy law 
would have operated here because it 
was in a public place and she was a 
public figure,” he said. “But you would 
hope that simple editorial judgment 
would be used about whether or not this 
was a private event — and a woman 

ror so 1 meone to blame photographers seemingly willing tn po 
D iana s sudden, violent d«»rh many to any extreme to snan a n hs\« ^ 

going out with a boyfriend for dinner is 
<*ss Of Wales in prf^e momentshas ototo^h^S^ ex P ,0,tari * e ? ot ^ conceivable stretch of the 
sgways been as insatiable as the nublic and ^nSi ( *c° fh ^ r, ^ n ^2 ur ? sulg S ree< ^y imagination a public occasion." 

and rafaleas individuals to risk But, as Andrew Marr, the editor of 

hI^S5S^ pi ? S,1 !5 0f P 181 * s nDage ' ^ Independent, another broadsheet, 

has blood on his hands today,” said Earl ' 

Spencer, pleading with reponers to 
leave him alone. 

For some time, public officials and 

fcrortton "T,™, “ editors of some of Britain's so-called 

^ newspapers have been calling for 

Paiace^hl/rSl^ ■ L apnvacy law that would forbid the news 

Diana lived, jeered and media from intruding too aggressively 
into people’s private lives. But France, 
where the accident took place, has of the 
strictest ' • - 


’ — - — “uuu. ihbu, jccico ana 

shouted at the pack of reporters sent to 
describe the public reaction to her 

-riappy now? ~ yelled a cily bus “SL^u^Tsuel^ 

France No Paparazzi Market 

: ^ Strict Press Laws Govern Any Invasion of Privacy 

International Herald Tribune 

1 P ARIS . — The free-lance photo- 
graphers who pursued Diana, Princess 
of Wales, and her. millionaire compan- 
ion shortly before their fatal crash 
would have found .no legal market for 
rbeir pictures in' France. 

France has strict press privacy laws 
— so strict that editors usually print a 
black band across the faces of subjects 
Who have not given permission for their 
pictures to be published. 

* The law protects people against any 
intrusion into their private life or that of 
their family. 

. Some politicians in Bri tain, which 
has one of the toughest libel laws in the 
world, have long songht to introduce a 
privacy law even more restrictive than 
the one in France. 

The police questioned seven photo- 
graphers following the accident, seek- 
ing to find out what caused it and wheth- 
er the photographers had taken pictures 
of the wrecked car even before the ar- 
rival of emergency services at the scene 
of the crash. 

The paparazzi who dog celebrities in 
France give their pictures to agencies 
that supply the bitterly competitive 
tabloid newspapers in Britain — which 
collectively sell more than 13 million 
copies a day — the United States, Spain, 
Germany and many other countries. 

Photographers warned agains t hasty 
judgment of their profession. 

“It is not the photographers but the 
public that has created this market,” 
said Alain Bizos, who works for die Vu 

pointed out, photographers lucky 
enough to soap an exclusive photograph 
of a celebrity in a private moment can 
expect a lucrative windfall from a global 
market eager for their work. 

“What happened in France happened 
not purely because the British tabloid 
newspapers spend a lot of money on 
their pictures,” Mr. Marr said “So do 
international magazines and newspa- 
pers around the world. A member of the 
paparazzi who is on form and gets the 
right shot is said to be able to make £3 to 
£4 million [$4.9 to $6.5 million] a 

In Britain, the situation is compoun- 
ded by the fierce circulation war among 
the tabloids, whose editors go to extreme 
lengths to produce exclusive stories and 
photographs. "The only way in which 
this horrific, nasty and intrusive practice 
would cease would be if the public at 
large made it clear that they do not like 
newspapers which engage in this kind of 
business,” Sir Teddy Taylor, a Con- 
servation member of Parliament, told 
the Press Association in London. 

For their part the tabloid editors were 
keeping a low profile. At The Sun, which 
on Friday printed grainy “world ex- 
clusive’ ' photographs of the princess and 
Dodi al Fayed swimming off die coast of 
Sardinia, the editor, Stuart Higgins, was 
not making any statements. Nor would 
Piers Morgan, the editor of the Daily 
Mirror, agree to be interviewed. “It's an 
enormously sad day and we have (he task 
of getting out this particular newspaper 
for our readers," said Nick Fullagar, a 
spokesman for Mirror Group. 

tjuftiv |1«<iaii/Ri4ff»vw 

The police checking a motorcycle used by a photographer chasing Diana. 

Homages to a Life of Helping Others 

Her Charitable Work Fi ghting AIDS and Land Mines Is Widely Praised 

By Barry James 

International Herald Tribune 

• PARIS — The death of Diana, Prin- 
cess of Wales, who once said she pre- 
ferred to be a "queen of hearts’’ rather 
than to be queen of England, touched off 
an outpouring of grief and shock around 
the world Sunday. 

Homages flowed from the charities to 
which she gave her time, often away 
from the glare of the press, from such 
statesmen as President Nelson Mandela 
and President Bill Clinton and from 
the ordinary people who laid flowers in 
the tunnel w here she died. 

* The news came as a profound shock 
in the United States, where millions had 
followed the twists and rums of Diana’s 
dramatic life with deep fascination. 

. "We are profoundly saddened,” Mr. 
Clinton said. 

. Tributes poured in from countries 
struggling with the problem of land- 
mine clearance, a cause to which tire 
princess bad devoted much of her at- 
tention in recent months. 
i "We lost our greatest supporter,” 
said Azis Ahmad of Halo Trust, the 
British mine^J earing program in Af- 

The head of the International Com- 
mittee of the Red Cross, Cornelio Som- 
maruga, said Diana had done a great 
deal to bring the issue of land mines into 
the homes of ordinary people, shifting 
the debate from the sole realm of politi- 
cians and generals. 

„ Her death came on the eye of a 19-day 
conference in Oslo at which about 100 
- countries will work to draft a text for a 
convention banning the use, export, pro- 
1 duction and stockpiling of anti-person- 
oel land mines. 

: Al Fayed to File 
Lawsuit Over 
: Press ‘Ho undin g’ 


* PARIS — A French lawyer for 
Mohamed al Fayed, whose son 

• Dodi died with Diana, Princess or 
Wales, in a Paris car crash on Snn- 

*. day, said he would faring a f 1 

•and added that the al Fayeds had 
feared hounding by die press could 
♦have tragic consequences.’ _ 

* Bernard Dartevelle, interviewed 
,oo the French television station 
1 LQ, did not names defendant in me 
-damage suit, but said the al Fayeds 
’-had been aware thatihecouple were 

at risk from photographers. 

- “I have been instructed to bring 
a civil suit,” Mr. Dartevelle said, 

• “and we will do so as soon as a 
? probe is opened. We want foil light 

-to be shed.” , . „ 

Seven French photography 
-who were following Doth and u- 
■~ana when their car crashed were 
being questioned by Pans police 
over their possible role in the crash 
’'and their behavior at the scene. 

' Mr. Dartevelle said Mohamed 
7 and Dodi al Fayed “had realized 
that this hounding could have tragic 

Plamenko Priganica, a 37-year-old 
former Bosnian soldier who lost a leg in 
a mine explosion, said: “She came here 
to help us. She was a beautiful woman 
who did great work for mine victims.” 

The princess broke off much of her 
■charitable work a couple of years ago 
when she sought to create a more private 
life. Bur she retained links with or- 
ganizations working to fight such dis- 
eases as AIDS and leprosy, to help the 
homeless and to support hospitals spe- 
cializing in cancer research and chil- 
dren’s diseases. She was also a sup- 
porter of the English National Ballet 

“Diana took the stigma away from 
AIDS,” said Nick Partridge, chief ex- 
ecutive of the Terence Higgins Trust, an 
AIDS charity. “She was one of the first 
and most committed champions on this 

Everywhere she went, Diana man- 
aged to keep up with her charity in- 

“She was well known and loved by 
the Russian people,” President Boris 
Yeltsin said in Moscow, where Diana 
visited a children’s hospital and the 
Bolshoi Ballet during a 1995 visit 

Diana was able to charm even 
staunch republicans in strife-torn North- 
ern Ireland. The Catholic and Protestant 
communities briefly put aside age-old 
rivalries to mourn Diana, whom a cler- 
gyman, Graham Steward, described as 
“a sort of ambassador across all bar- 

The tributes from world leaders went 
beyond the formal statements that are 
usual on such occasions. Many were 
deeply personal. 

‘“'The princess was a Woman of grace, 
beauty and charm,” said Prime Mi nis te r 
Benjamin Netanyahu of Israel. “She 
represented Britain with nobility and 
warmth, and she captured fee imagin- 
ation of millions throughout fee world 
wife her dedication to her children and 
to innumerable worthy causes." 

President Jacques Chirac of France 
called Diana “a young woman of our 
time, warm, full of life and generos- 

Mr. Mandela said she was an ‘ am- 
bassador for fee sick and needy 
throughout fee world.” 

Mother Teresa, who met Diana sev- 
eral times, said fee pnncess was^very 
concerned for the poor/ and added, 
“That is why she was so close to me. 

Mr. Clinton said he and his wife, 
Hillary, liked Diana “very much- 

fiSkled: "We admired Iter work for 

children, for people wife ^ 

cause of endfog *e of lwd 

mines in fee world. And for ter love for 
her children, William and Harry. 

Here and there, however, a note of 

criticism crept in. Iran s .^f^ Diana 
vision said fee “corruption of Drana 
and her former husband, fee Pmce of 

Wales, was ”ai fee of scandal m 

in Brfelin, undapubfc fire for hound- 

tan *- 

diadynfinr lh^ cc^ News of 
World^dT French photograph 

tional Enquirer, a U.S. tabloid, said he 
had been offered fee pictures for about 
SI million. 

Chancellor Helmut Kohl of Germany 
said Diana was "fee victim of an ever 
more brutal and unscrupulous compe- 
tition on the part of the media.” 

“This terrible accident and her 
death,” he added, "should finally give 
those responsible in the media a reason 
to reflect” 

Brother Blames Media 

4 Exploitative 9 Demand for Photographs 

The Associated Press 

CONSTANTLY South Africa — 
The brother of Diana, Princess of 
Wales, blames the news media for her 
death, saying Sunday that every ed- 
itor who paid for exploitative photos 
of her had blood on his bands. 

"I would say that I always believed 
fee press would kill her in fee end," 
Charles Spencer told reporters 
gathered outside his home in Con- 
stantin, 20 kilometers from Cape 

“Bat not even 1 could imagine that 
they would take such a direct hand in 
her death, as seems to be the case. 

“It would appear feat every pro- 

E rietor and every editor of any pub- 
cation that has paid for intrusive and 
exploitative photographs of her, en- 
couraging greedy and ruthless indi- 
viduals to risk everything in pursuit of 
Diana 's image . has blood on his hands 

Diana, her companion, Dodi al 
Fayed, and their chauffeur were killed 
in Paris in a car crash while being 
chased by photographers on motor- 
cycles early Sunday morning. 

‘ "Die one consolation is fear Diana 
is now in a place where no human 

being can ever touch her again," Mr. 
Spencer said. "I pray fear she rests in 

Mr. Spencer came out of his res- 
idence after a neighbor said he would 
issue a statement but expressly re- 
quested no photographs- Once he ap- 
peared at the electronically controlled 
gates, fee request was ignored 

“It was with profound shock that 
we learned of my sister’s serious in- 
jury and subsequent death in Paris 
early this morning/' he said. “All 
those who came into contact with her, 
particularly over the past 17 years, 
will share my family’s grief. 

"She was unique. She understood 
fee most precious needs of human 
beings, particularly those who 
suffered, and her vibrancy and 
sparkle, combined with a sense of 
duty, are now gone forever. It is heart- 
breaking to lose such a human being, 
especially when she was only 36. 

"I would ask you please at this time 
to respect the fact that Diana was pan 
of a family, and amongst the general 
mourning at her death realize that we, 
too, need space to pay our final re- 
spects to our own flesh and blood. For 
feat we will need privacy.” 

For Stalkers 
With Camera, 
Diana Reigned 

As Top Quarry 

By Fred Barb ash 

Wqshinxlon Pmj Sen-ice 

The paparazzi of Europe are hungry, 
relentless, fearless and generally mer- 
ciless celebrity stalkers, armed wife 
cameras and driven partly by the thrill of 
the chase and the desire to bag that 
single exclusive shot feat will sell to a 
tabloid newspaper for Five or six figures 
and make weeks or months of waiting 

They are free-lancers rather than em- 
ployees of particular newspapers or 
magazines and seek the highest bidder 
for their pictures. They will travel by 
train, plane, automobile, helicopter or 
speedboat to find their quarry. They 
spend much of feeir time on fee backs of 
hired motorcycles, driven by hired 
drivers so that the photographers are free 
at all times to shoot when their target 
zooms suddenly into sight for what may 
be only a fraction of a second. 

Of all the quarries, none has been 
more desired over the last decade than 
Diana, Princess of Wales. 

Half a dozen or more paparazzi did 
nothing but wait and watch for Diana, 
hoping to get anything feat will sell:- 
■ Pictures of Diana coming in and out of 
her health club fetched fee lowest 
prices; pictures of Diana wife a man 
fetched the highest. 

The paparazzi prompted her to take 
evasive tactics as fee drove around Lon- 
don. Once, two years ago, fee thought 
she had eluded them when visiting her 
personal psychotherapist late at night 
But they caught her as she was leaving, 
trapping her between her car and a wall so 
that all she could do was cover her face, 
shrink in fear and weep in frustration. 

The photos that later were published 
purported to show Diana overwrought 
with emotion from a presumably 
wrenching session wife her therapist. 
Later videos showed feat her weeping 
began only in response ro being 
cornered by fee photographers. 

While sne tolerated much of fee in- 
trusion, she surprised people a year ago 
by seeking ana obtaining a court in- 
junction against a particularly aggres- 
sive photographer who then complained 
that somehow she was nor playing by 
the rules in going after him this way. 

When not chasing Diana, fee 
paparazzi of London sit around neigh- 
borhoods frequented by actors and rock 
stars, particularly those involved in 
marital failures or affairs. This is con- 
sidered lower-grade activity and re- 
ceives much lower paymenr from pa- 
pers and magazines than did shots of 

The name of the photographers 
comes from fee Italian. "Paparazzi" is 
the plural of paparazzo, the surname of a 
free-Jance photographer of celebrities in 
Federico Fellini's 1959 movie "La 
Dolce Vita.” 

Charles Awoke Sons at Balmoral to Break News 

Gonqw ltd by Oar Sufi Fnm Duftadta 

LONDON — Prince William and 
Prince Harry, fee boys Diana, the Prin- 
cess of Wales, adored, learned of feeir 
mother’s death before dawn Sunday, 
when feeir father woke them to break 
the news ar fee royal Balmoral estate in 

William, 15, and Harry, whose 13th 
birthday is Sept. 15, were spending fee 
end of then-summer vacation with Prince 

Charles before returning to school. 

The princes, looking shocked and pale 
but calm, went to Crafeie Church near 
Balmoral wife their father and grand- 
mother, Queen Elizabeth n, on Sunday 
morning to pray for feeir mother. 

Just as they always do when on va- 
cation at Balmoral, the royal family 
arrived at the church at 1 1 :30 A Al. in a 
convoy of black liraou sines. 

Elizabeth, fee 97- year-old Queen 

Mother, came in fee first car, dressed in 
black and accompanied by Charles's 
younger brother. Prince Andrew, and 
Peter Phillips, son of Charles's sister. 
Princess Anne. 

The Queen Mother was followed by 
Charles in a dark suit and the young 

Behind them came Queen Elizabeth 
II, staring somberly ahead, with her 
husband, fee Duke of Edinburgh. 

For Diana, the boys were paramount. 

As she said in an interview published 
last week, her sons were the only thing 
that was keeping her in Britain, where 
she was continually hounded by the 

She told reporters earlier this summer 
that fee boys had urged her to live 

Her devotion to fee princes was re- 

The boys obviously loved being with 
her, sharing her informal lifestyle and 
the normal childhood joys that she in- 
sisted they savor — trips to fun parks, 
going to the movies,' stopping for ham- 
burgers, choosing videos. 

She also tried to instill in them her 
concern for the less-fortunate. 

She took William to meet homeless 
people and discussed her campaigns to 
help AIDS sufferers and banish land 

"Your heart has got to go out to die 
boys,” said GUI Marseilles, a 56-year-old 
London housewife who was crying as she 
placed a bouquet on the pavement outside 
Kensington Palace, where Diana lived. 

Charles and his sons have been 
spending fee momh of August with fee 
queen at Balmoral, enjoying hunting 
and other outdoor pursuits. In a break 
from recent years, Charles invited pho- 

tographers for a photo call at Balmoral, 
hoping they .would then leave fee royal 
family alone. 

William, tall and slim with a shock of 
blond hair, dislikes the paparazzi and 
kept looking down. 

Only once did he raise his eyes and 
smile shyly, reminiscent of his mother’s 
shy smile. Earlier this summer, Diana 
said the photographers leave him 
“freaked out/' 

Hany, an exuberant skier and athlete 
wife reddish-blond hair, seemed to ig- 
nore the cameras. 

The princes were born into the lime- 
light, growing up in a royal family far 
more open to publicity than ever before 
and wife parents whose marital troubles 
were daily fodder for the tabloids. 

In 1995, flanked by his estranged par- 
ents, William arrived at Eton College, fee 
first future king to attend the venerable 
institution that for more than 500 years 
has educated the sons of Britain's elite. 

He has become something of a heart- 
throb among teenage girls, regularly 
featuring at the top of polls for the most 
handsome royal. 

Harry attends the private Ludgrove 
school in Berkshire, where he is re- 
ported to be better known for his athletic 
prowess and impish personality than his 
academic achievement. 

William had matured rapidly as he 
coped with his parent’s acrimonious di- 
vorce played out on fee front pages of 
the world's press, his own adolescence 
and fee daily difficulties of modem roy- 
al life. 

He and his mother, who was only 20 
when he was bom, had a particularly 
close relationship even though nannies 
played a large part in his upbringing. 

(AP, Reuters) 

Diana Was Among Britain’s Wealthiest 


fee pictures. Steie 

Charles and a sister of his ex-wife. Lady Sarah McCorquodaJe, followed 
by President Jacques Chirac, leaving the Paris hospital where Diana died. 

Azence Fninvc-Prcssc 

LONDON — Diana, Princess of 
Wales, was one of the richest women in 
Britain, with a vast personal fortune 
swelled by a huge divorce settlement 
last year after her split from the heir to 
fee Ihrone. 

Diamonds, sapphires and a boundless 
collection of designer clothes were 
some of the personal possession left 
behind by fee princess with her death in 
a car crash m Paris. 

Estimates of the size of Diana's per- 
sonal fortune have varied from as high 
as £40 million ($64 million) to as low as 
£17 million. 

The Times of London listed her as 
one of Britain’s richest women in its 
annual compilation of the country's 

wealthiest inhabitants. She was richer 
than her former husband. Prince 
Charles, after receiving the bumper di- 
vorce settlement and an inheritance 
from her father, the newspaper report- 

But the newspaper’s estimate of £17 
million fell far short of the true extent of 
the riches possessed by the princess, 
others said. 

Although the size of her divorce set- 
tlement from Prince Charles was never 
made public, sources close to the prin- 
cess said that the figure was in the region 
of £16 million. 

Interest alone would have provided 
an income in excess of £1 million a year 
to help finance her lifestyle of travel and 
social and charity activities. 

■ — —a- 




Some Africans Dread Pullout of French Troops 

By James Rupert 

Washington Post Sen ice 

BANGUI, Central African Republic 
— In the fourth decade after France 
declared independence for most of its 
African colonies, it is finally handing 
over the real thing. 

In this bankrupt, bullet-pocked cap- 
ital on the Ubangi River, that fact is 
sinking in — but it causes no joy. 

In the 1990s. France has been shed- 
ding its neocolonial role as arbiter and 
financier for its former African hold- 
ings, leaving them to reform their econ- 
omies and to resolve internal conflicts. 

Among France’s 14 ex-colonies in 
sub-Saharan Africa, the change is hard- 
est to the Central African Republic. 

In some ways, France’s liberation of 
its colonies in 1 960 was a formality . The 
Ministry for the Colonies renamed itself 
the Ministry for Cooperation and kept 
sending out French officials and troops 
to help run African governments. 

No former colony has stayed more 
dependent than this land of savanna and 
forest, unconnected to the outside world 
by so much as a railway or a paved road. 
Until a few years ago, French officials 
concede, the country’ was run largely by 

Time Has Come for Real Independence 

a French intelligence officer. 

In the 1990s, France's quasi-imperial 
role is a financial burden. French control 
in Africa has lost its Cold War im- 
perative, and politics in Paris is knotted 
around issues of European unification. 
So France has been snipping its African 
umbilical cords, tightening bilateral aid 
and devaluing the French-backed Af- 
rican currency, the CFA franc. 

This summer, France has been shed- 
ding its role as gendarme of Africa. In 
June, when Brazzaville, Congo, ex- 
ploded in civil war, the Foreign Legion 
flew in. This time, once they evacuated 
Western citizens, they flew out again. 

In July, Paris announced military cuts 
in Africa — most dramatically, a pullout 
of the 1.400 troops in the Central Af- 
rican Republic. That has been 
something of a shock. Many people 
can’t imagine the country not domi- 
nated by France. 

Many Central Africans in Bangui say 
France's withdrawal is right, but they 
say it more often with a sigh than pas- 
sion. “We have to be the ones to take 
care of our affairs,” said Bamabe 

Soungou, a restaurant manager. 

On a good night, when Mr- 
Soungou’s restaurant might fill half its 
tables, the khakis and crew cuts of 
Frencb soldiers predominate. 

Having' had been drawn into combat 
zones five times in the past 16 months, 
the French force has been handing its 
role to an 500-iroop peacekeeping force 
drawn from six African countries. 

This country's poverty is rooted 
partly in its geographic isolation, and 
quite substantially in France's rule. 
While Europe's subjugation of Africa 
was universally brutal. French rule in 
central Africa was among the worst. 

Here and in neighboring Congo and 
Gabon, France leased the land and its 
people to businessmen, who were free to 
use violence u> force villagers to tap the 
native rubber trees. 

French companies and officials 
seized women and children from vil- 
lages and interned them in camps as 
hostages, forcing the men to collect 
rubber. In 1905, pressure in France 
compelled an inquiry that found the 
‘ 'companies, rapacious and cynical, Dy- 

ing to create a new form of slavery." 

The findings were suppressed and 
forced labor continued- The republic 
thus reached formal independence as a 
virtual ruin. 

Since I960, France has wielded 
quasi-colonial power through its heavy 
subsidy of the republic’s budget, its 
officials serving in the government here 
and its troops, based in Bangui and the 
northwestern town of Booar. 

The most glaring example of 
France’s role was its relationship with 
Jean-Bedel Bokassa, who seized power 
in a 1966 coup. Mr. Bokassa was brutal 
and corrupt 

France kept close ties with Mr. 
Bokassa even as he grew increasingly 
erratic and murderous. In 1976, he 
crowned himself Emperor Bokassa L 

France reversed its support for Mr. 
Bokassa in 1979, flew in a Bokassa 
rival, David Dacko, and installed him in 
office. With Mr. Dacko came Lieuten- 
ant Colonel Jean-CIaude Mantion, for- 
mally a French military officer sent as 
an adviser to the new president. 

But in reality, officials concede, he 
was an officer of the intelligence service 
who in many respects ran this country 
for more than a decade. 

jg* - ml 

PC' 1 ■** **" ^ , , ' ♦ ■ * 


* ' * • ■- 

rfe ' it*. 

*?>. rm? 

• *; 7 ^ v- 

Sayjid APm/Tbc Associated Pirm 

KENYA GHOST TOWN — A man in the Likoni neighborhood of 
Mombasa pulling a cart across an empty street Sunday. Thousands 
fled, fearing new violence after a police station was ransacked Aug. 13. 


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Radar Check for National Airport 

WASHINGTON <NYT) — The Federal Aviation Ad- 
ministration has begun a review of radar maintenance at 
National Airport near Washington and said the agency would 
redesign the airport’s communications links after several 
equipment failures last week. 

The radar equipment at the airport, which is in Virginia just 
across the Potomac River from the U.S. capital, and com- 
munications links to a backup radar at Andrews Air Force 
Base in nearby Maryland were involved in the failures. 

In two episodes, one last Thursday afternoon and the second 
on Friday, air traffic controllers lost part of the radar service 
that helps them direct arriving and departing flights. 

While the controllers could still see the “blips” rep- 
resenting planes on their radar screens, the little blocks of text 
and numbers that give additional information about each plane 
failed to appear, said Eliot Brenner, a spokesman for the 

Labor Impasse at US Airways 

IMPERIAL, Pennsylvania (AP) — The head of the pilots’ 
union ar US Airways said he doubted a new contract would be 
approved before the company's Sept. 30 deadline for wage 
and other concessions. 

US Airways, which has a hub in Pittsburgh, has said it will 
abandon a S 14 billion order for 400 jets from Airbus Industrie 
if no deal is reached with the Air Line Pilots Association. 

The United States and Japan have failed to narrow their 
differences over the future of aviation services between die 
two economic powers in talks this week. Assistant Secretary 
of State Alan Larson said after three days of talks on the Sib 
billion aviation market. i Reiners; 

vk;, axv rase*] 




Appear* even Saturday. 
To advertise ronlaci 
Sarah Mershof 
in our Loudon office: 
TeL: + -14 1 71 420 032b 
Fax: + 44 I 71 420 0338 
or \our nearest IHT office 
or representative. 


| This Week’s Holidays 

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

MONDAY: Bermuda. Canada. 
Guam. Libia. Luxembourg. Malaysia. 
Mexico. Puerto Rico. Slovakia. United 
Siam. Virgin bilands. 


Qatar. San Man no. 

FRIDAY : Israel. 
SATURDAY: Mauritius. 

Netherlands Antilles. Pakistan. Sao 
Tome. Swaziland. 

Sources: J.P. Morgan, Reu- 
ters, Bloomberg. 

Sw* rair 

Residential Real Estate 

even Frirlav in The Intermarket 

Are. You Prepared ? 

1997 & 1998 Will Generate 
Major Currency Moves. 

These moves will directly affect the value of 
your Portfolio. Prepare yourself to take 
advantage of these moves by calling today. 

SUPERIOR SatecUan of Managed Accounts 

O UTSTAN DING Global Currency Analysis 
EXCEPTIONAL Execution Forex or Futures 
MINIMUMS SI 0,000 to S5.000.000 (USD) 

COMMISSION 2-5 FX Spreads Futures S12S36 

For My Complimentary Services Guide, Latest Research Reports. 
Opinions and Performance Records Call (24 hours) Toll-Free. 

Australia 1800125944 
Colombia 980120837 
France 0800902246 
Hang Kong 800967209 
Japan 0031126609 

Belgium 08001 SS80 
Denmark 80016132 
Greece 0800119213013 
Israel 1771000102 

Aural 0038110243 

Mexico 9580O8T84178 Netherlands 080220457 
Portugal 050112632 Singapore 8001202501 
Spain 900931007 Sweden 020793158 
Thailand 001 8001 1921 881 3 USA 8009945757 

US-Toll Voice Line +714-376-6020 US-Toll Fax Line +714-376-8025 


Finland 08001110064 

Germany 0130829666 
Indy 1G7875928 

Luxembourg 0800435Z 
N. Zealand 0800441880 
SAfrica 0800996337 
Switzerland 0800897233 

Disney World Calm 
Over Encephalitis 

By Donald P. Baker 

• Washington Post Service 

ORLANDO, Florida — The Lineck 
family comes to Walt Disney World 
every year for vacation and this year has 
been no different, with one exception: 
The after-dark dip in the resort pool has 
been replaced with a nightly ceremonial 
spraying of bug repellent. 

Mosquitoes carrying a potentially 
deadly encephalitis virus have been 
found in the area and public health of- 
ficials have warned residents and the 
tourists descending on this playland of 
resorts and theme p arks to protect them- 

Like the Linecks. most people here 
seemed to take the warnings calmly 
about the vims, called Sl Louis en- 

•‘Most of our guests are taking it in 
stride,” said Diane Ledder, a spokes- 
man for Disney, which reported full 
occupancy for its hotels and no can- 
cellations" The mosquito-borne virus, 
which can cause swelling of the brain, 
fever, weakness and, in the most severe 
cases, coma and death, has hit Florida 
before, sometimes severely. In 1990. a 
total of 223 people contracted the dis- 
ease and 1 1 died of it. 

Although no case of St. Louis en- 
cephalitis has been reported in humans 
in Florida this year, a reliable harbinger 
of an outbreak — the infection of chick- 
ens — has been reported in nine 
counties, including Orange County, 
home of Disney World. 

in addition to posting the medical 
alert. Disney World is closing hotel 
swimming pools and its three water 
paries a bit before dusk every night until 
the encephalitis alert is over. 


Reformers in Kenya 
mimed on Treason ’ 

NAIROBI — President Daniel ar- 
ap Moi has accused a coalition of 
legal and constitutional reformists of 
treason for planning to turn itself into 
a constituent assembly, newspapers 
said Sunday. 

The executive committee of the 
National Convention Assembly said 
last week it would declare itself to be 
an interim people's legislature unless 
Mr. Moi’s ruling Kenya African Na- 
tional Union agreed to discuss re- 
forms before elections later this year. 

“It is a treasonable act and I dare 
them to do it” the newspaper Sunday 
Nation quoted him as saying. (AP) 

Algeria Rebel Chief 
Reportedly Is Slain 

ALGIERS — The commander of 
the w estern region of the Armed Is- 
lamic Group and 46 other rebels have 
I been killed by security forces, the 
l newspaper La Tribune said Sunday. 

It said Mustapha Akkal and three of 
his followers were killed in an am- 
bush between Tafessour and Ouala. 

! There was no official confirmation. 
Elsewhere, papers said, nine civilians 
were killed. (AFP) 

Wkst African States 
Press Sierra Leone 


! ABIDJAN. Ivory Coast — West 
I African heads of state have form- 


alized an embargo on Sierra Leone in 
an effort 'to force its three-month-old 
militar y government to restore civil- 
ian rule. 

The conference of the Economic I 
Community of West African States, in 
Abuja, Nigeria, also vored to extend 
the mandate of its Liberian peacekeep- 
ing force for an unspecified period. 

General Sani Abacha of Nigeria was ' 
renamed chairman of the regional 
grouping, but appeared to have failed 
to persuade members ro take a harder - 
line against the junta in Sierra Leone. 


11 to Be Put on Trial 
For Aden Bombings 

SAN'A. Yemen — One hundred 
and twenty people arrested in con- 
nection with dynamite attacks in Aden ■ 
have been released, but 1 1 other sus-. •. 
pects are to go on trial, the Yemeni- 
Interior Ministry said Sunday. 

The Yemen Socialist Party and 
League of the Sons of Yemen, which 
mounted an unsuccessful . armed- 
struggle fra- secession in die south in 
1994, have denied charges of involve- 
ment in the three attacks on July .28, 
which caused no casualties. (AFP) 

Peru Crash Kills 12 

LIMA — Two small planes col~_ 
tided in midair and (dunged to earth, 
killing 12 people, including five Ger- 
mans, Peruvian authorities said. 

There were no survivors. The 
planes were taking tourists Saturday to 
see the pre-Inca line drawings of 
Nasca. f Reuters) / 





Aim! Bittern 2271 
Ankara 19*8 

AOMnt 28*2 
Bwcotona 25/77 
Brtmto 25177 
Bstfci 27110 

Brussels 22/71 
Budapest 28*2 
Ccparhwgsn 24/75 
Coma OW Sol MW 
DHHta 17*2 

6hnh«jnjh |7*C 
Florence 32/09 

Fnu*H*1 27*0 

Geneve 29*4 

Heteufc 13*4 

talartiuJ 23/73 

Kiev 22/71 

VaaP*fwk 24/75 

Lbtoon 22 71 

London 23/73 

Madrid 77*0 

Maftwca 31*8 

Wen 3M1 

Moscow 14*7 

Munch 2S/77 

Nee 20/84 : 

Oslo 22/71 

Pens 22/71 

Prague 27*0 

Reykjavik 11*2 

Riga 22/71 

Rome 23*4 ■ 

SL Powndbwg 15/99 
Swdcholm 22/71 • 

Smftnug 2MB 

TMdrm 19*6 

TUW 31*8 I 

Venice 23*4 l 

Vienna 27/80 i 

Warsaw 24/75 i 

zmeh 27*0 I 

Middle East 

42/107 26/79 s 
25/77 19/68 5 
33191 19104 s 
2V04 11/52 S 
M/79 IMSs 
38/100 17*2 S 
42/107 28/70 B 

High LowW 

29*4 t 

19.86 1 152 pc 
23/73 7.144 pc 
31*8 IlTDpe 
2Sr77 l7«2e 
29*4 17*2 ■ 
27*0 16*1 pc 
20*9 11/M pc 
28*2 17*2 » 
24/75 14*7 sfc 
30*6 21/70 sh 
19*6 13/55 s 
1854 13/55 c 
31.58 liMWs 
27.BO 16*7 pc 
25/77 12/53 ah 
17*2 * 46 0 
27*0 10*4 pe 
18*4 71*4 pc 

24m 21/TO » 

28/79 1M4 pc 
22/71 16*9 r 
29*4 15*9 pc 
31/88 20B8pe 
30/89 21170 pc 
9/48 1/34 pc 

24/75 14*7 c 
28*2 28/73 pc 
2»71 13*5 c 
20*8 n*2 pc 
27*0 lUSSah 
12*3 9/40 r 

19*? 12*3 pc 
30*6 19*0 pc 
18*1 10*0 s 
21.70 12/53 pc 
22/71 16*1 e 
17*2 1 1*2 s 
22/71 13*6 e 
29*4 21/TOs 
28*2 10*4 pc 
23/73 13*5 pc 
22/71 10*1 c 

•UTQ9 27700 s 
27/00 21/70 pc 
32*9 19*6 pc 
28*2 12/53 pC 
26/79 14*7 pc 
37*8 20*0 » 
41/106 2&7g I 

Forecast for Tuesday through Thursday, as provided by AccuWeather. 



Typhoon Bmg could bring 
heavy rains lo souihern 
pan* ol Japan 01 Korea-, 
soaking rams are also fine- 
ly ov»r eastern China near 
Shanghai. Dry and cooler 
In Belong with sunshine 
Tuesday to Thursday, but 
Hong Kong will be warm 
and humid with the chance 
lor a shower or ihunder- 
storm each day. 





North America 


Sunny and hot Irom the Pa/tly sunny and breezy n 
Sou Hi west to the southern London Tuesday, but 
Plains Tuesday to Thura- ehoweta ' ate likely 
day. boi a Cdd Irani mov- Wednesday and Thursday. 
Ing from the Greai Lakes Wind -driven rains aie in 
no the Northeast will bung store tor Ireland ana Scot- 
showers and thunder- land. Sunny and warm 
storms followed by much from Hungary and Poland 
cooler weather tor Thu/s- to St. Petersburg and 
day. Partly sunny and com- Helsinki. Thunderstorms 
tollable In the northern are likely Tuesday in east- 
Plams. em and southern Franca. 

North America 










Los Angolas 



High Low W 
14(57 9/48 * 
32*9 21/701 
28/02 10*6 pc 

30*8 1004 j 
30*7 23.73 s 
32/09 ia>61 1 

29104 1004 ft 

32*0 24C5 pc 
34*3 22/71 pe 
31*0 17*2i 
32*8 26/79 sh 

High Low W 
1VW 8/J6 sh 
31*8 21/70 pc 
27-00 17*2 pc' 
27*0 16*1 pc 
34/93 22/71 pc 
32*9 14/57 DC 

20*02 16/61 pc 
JOT1 24/75 pc 
33*1 22/71 pc 
32 *5 1 7*2 pc 
3i01 28/77 pc 





High LowW 
J-M04 17*2 Sh 
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30*6 2271 pc 
33/91 2173*, 
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27*0 15*0! 
21.-7T 1 1/52 Sh 
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High LowW 

Almaty 32*9 14*7* 
Bail 30B3 19*66 s 

Bangkok 3 1*8 34/75 1 

Bo*ng 26/78 16*1 pc 

Bombay 2H/B2 23/73 r 

Calcutta 31*0 24/75 I 

Clung MU 31*8 22/7i r 

Colombo 29*4 24.75 ah 

Hano* 32*9 26/70 r 

HoCtuUnh 23/73 r 

Hong Kong J1/88 25/77 pc 

Irtanubad 41/106 26/77 s 

Jakarta 31*8 2271 a 

Karaeti 3M1 26/77 » 

K Lumpur 32*9 22m c 

K. Kinobaki 31*8 23(73 pc 

Mania 30*8 23/73 r 

Now Delhi 37/M 2079 t 

Phnom Penh 31*8 2373 r 

F1»Aet 31*8 2417* r 

Rangoon 28*4 23/73 r 

Seoul 29*4 23/73 r 

Shanghai 33(91 27*0 pe 

Saippare 30*8 22/71 c 

Taipei 32*9 26/77 c 

Tokyo 28*2 26/7* e 

Vtarttane 39*4 22/71 sh 

Ai3*rs 37*8 22/71 1 32*9 1ttB6pe 

Cepe Town 18*4 8/46 pc 21/70 H/481 

CaoaMonca 23/77 2170 pc 27*0 21(70* 

Harare 24/75 12*3 pc 25/77 13*5 pc 

Lagos M*£ 22/M * 27*0 2373 e 

Namti 27*0 10*0 pe 2W7S 12*3 pc 

TlrtS 32*9 17.62 * 32*9 21/701 

Latin America 

Buenos Aru 17*2 704 pc 17*2 71440c 

Caracas 28*2 22/71 c 29*4 23173 pe 

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Foley and Others 
Named as Envoys 

1 A '*■ 

L > ' • 



.. \ 


i ■ 


WASHINGTON — Moving to 
fill some of the many vacant po- 
sitions in his administration. Pres- 
ident Bill Clinton has announced 
his intent to nominate 19 people, 
including the former House speak- 
er, Thomas Foley, to ambassad* 
orships and other top government 

As expected, Mr. Foley, cur- 
rency a partner at the law firm 
.Akin. Gump. Strauss, Hauer & 
Feld, was selected to become am- 
bassador to Japan, and a former 
State Department spokesman, 
Nicholas Bums, was named to 
Greece. [WP) 

Clintons at Night: 
6 The Usual Casf 

EDGARTOWN. Massachusetts 
— - Tve lost count/* confessed 
William Styron. the writer, when 
asked how many times he and his 
wife. Rose, had dined with Pres- 
ident Bill Clinton and his wife dur- 
ing the first two weeks of the pres- 
ident’s vacation here. 

As the Clintons have hopped' 
from party to party around this is- 
land, it has seemed as if the same 
people have picked up each even- 
ing and hopped along with them. 
Mr. Clinton's aides have started 
referring to his companions as the 
“usual cast." 

The socializes on Martha's 
Vineyard included Vernon Jordan, 
the Washington lawyer; Carly Si- 
mon, the singer: Katharine Gra- 
ham, chairman of executive com- 
mittee of The Washington Post Co.; 
Diane Sawyer, the television jour- 
nalist. and Richard Friedman, the 
Boston developer who has lent the 
Clintons his 20-acre estate here. 


Study Cuts Into High Estimates of Illegal Mexicans in U.S. 

By Sam Dillon 

iVn<~ Yt'rl Hines ben i, c 

MEXICO CITY — The first formal 
migration study to be sponsored by the 
U.a. and Mexican “ovemmems has cnn- 

i governments has con- 
cluded that the number of undocu- 
mented Mexican workers who have 
settled in the United Stales in this decade 
is far lower than some politicians have 
suggested, only about 1 05.000 a year. 

Drawn from a two-year analysis of 
U.S. and Mexican census and other data, 
the figure is the first authoritative es- 
timate of the net annual flow of illesal 
Mexican workers into the United Stales 
— an issue that has been at the centeT of 
a political and academic dispute on both 
sides of the border. 

During the last presidential campaign 
in the United States, some conservatives 
made immigration a key subject of de- 
bate, with lurid portrayals of an America 
overrun by illegal Mexicans, a million 
of whom were said to pour across the 
border each year, taking jobs from U.S. 
citizens and driving up welfare costs. 

The new estimate appears alongside a 

series of other groundbreaking conclu- 
sions in a new Binational Study on 
Migration. The document was commis- 
sioned by Presidents Bill Clinton and 
Ernesto Zedillo in early 1 995. It brought 
together 20 prominent demographers 
and scholars — 10 Mexican and 10 
American — for two and a half years of 
research, field work and analysis. 

“No controversy ever really ends, so 
it would be ingenuous for us to think this 
will resolve all the disputes over mi- 
gration/* said Francisco Alba Hernan- 
dez. a demographer at the Colegio de 
Mexico who rook pan in the study. ‘ “But 
this is our attempt to arrive at the most 
reasonable overview, based on the facts 

available, instead of just throwing num- 
bers around/* 

The study was circulated Friday to 
Secretary of State Madeleine Albright, 
Attorney General Janet Reno, Foreign 
Minister Jose Angel Gunia of Mexico 
and other senior officials, and is ex- 
pected to be made public Tuesday. A 
contributor to the study provided The 
New York Times with its executive 
summary and key chapters. 

Migration is one of the most con- 
tentious issues dividing Mexico and the 
United States, and for three decades 
each government has molded policies to 
suit its own needs. The joint study is part 
of a shift tpward increased cooperation. 

officials said. . 

••We have focused on protection of 
migrants' rights," Mr. Gurria said in a 
recent interview, “ ‘ and you in the United 
States have focused bn containment, 
meaning stopping them with physical 
obstacles or more agents or whatever. 
Now we’re trying to find common in- 
terests, to develop a few common ap- 
proaches, and just deciding how we are 
going to manage our differences over 
the things we cannot agree upon." 

These were among the study’s con- 

• Migrant workers in the United 
States, both those who are there legally 
and illegally, most of whom in the past 
have returned to homes in Mexico at 
least once a year, are tending to stay 
longer north of the border. “The rate of 
back-and-forth movement seems to be 
slowing." the study concludes. 

• The average income of Mexican 
migrants has dropped during this de- 
cade. In 1996, 1 1 percent of recently 
arrived families headed by a Mexican- 
born person had incomes below 55.000, 
compared with 5.5 percent in 1990. 

• Mexican migrants are no more 
likely than poor .Americans to receive 
welfare. But many local governments 
pay more in services to Mexican house- 
holds than they receive in taxes, largely 
because the migrants, earning little, pay 
little. The largest public expenditure is 
for education. 

• The most important direct result of 
the migration is the money that migrants 
send home to Mexico, estimated at S2.5 
billion to $3.9 billion each year. That is 
the equivalent of about half the direct 
foreign investment in Mexico, the study 

• The migration’s primary benefi- 
ciaries are the migrants themselves, as 
well as American business people, 
farmers and consumers. The U.S. econ- 
omy grows through employment and 
consumption generated by the migra- 
tion. Bur the study adds. “We caution 

against overly simplistic conclusions 
about costs and benefits, and note that 
the perspectives on the balance differ in 
each country." 

If the study itself is a sign of the two 
governments’ increasing willingness to 
work together on migration, sharp dif- 
ferences remain. 

Just last week, for instance, the 
United States began the latest in a series 
of border crackdowns, this one focused 
on channeling hundreds of new U.S. 
Border Patrol agents to the lower Rio 
Grande Valley, where many migrants 
have been crossing in recent months. 

The Mexican government reacted an- 
erily. convening an urgent meeting of its 
border-based consular officials in San 
Antonio to discuss ways of protecting 

The two countries also have hotly 
disputed migration statistics. The Mex- 
ican-bom population living in the 
United States numbers 7 million to 7.3 
million, of whom 4.7 million to 4.9 
million are legal residents and 2.3 mil- 
lion to 2.4 million are “unauthorized 
residents," the study says. 

U.S., Finding a Cancer Risk 
In Some Laxatives, Urges Ban 

Away From Politics 

By Cun Suplee 

Wj shin won Post S mu i 

Quote / Unquote 

Hillary Rodham Clinton, who 
joined her husband for a round of 
golf over the weekend — 
something that happens about once 
every three years — as she stepped 
up to the First tee under the gaze of 
news cameras and more than a 
dozen .waiting golfers: “1 don't 
want to do this." 

And after she whacked the ball a 
good 40 yards: “Yea! I did hit 
ii !" (API 

WASHINGTON — The Food and 
Drug Administration is proposing a ban 
on over-the-counter producrs contain- 
ing phenolphthaiein, a principal com- 
ponent in most varieties of Ex-Lax and 
numerous other laxative products, be- 
cause the compound poses “a potential 
cancer risk to people who use this in- 
gredient at higher than recommended 
doses or for extended periods of 

Immediately after the agency pub- 
licized its intentions on Friday, No- 
vartis, the Swiss-based pharmaceutical 
conglomerate that markets Ex-Lax. an- 
nounced that the company was “im- 

mediately stopping manufacturing and 
shipping of all phe 

rr phenolphthalein-based 

products" and “voluntarily withdraw- 
ing" them from retail establishments. 

Ex-Lax is among the three best- 
selling brands, accounting for approx- 
imately 7 percent of brand-name sales in 
the U.S. laxative market, which is es- 
timated at S800 million a year. Last 
year, a Novartis spokesman said. Ex- 
Lax sales totaled S41 million. Neither of 
the other two top-selling products, 
Metamucil and Phillips, contains phen- 

“'Based on all available data, includ- 
ing nearly 100 years of human use. we 
continue to believe that phenolphthaiein 
products are safe and effective when 
used as labeled,” the Novartis state- 
ment said, noting that "no incidence of 
cancer has ever been linked to phen- 
olphthaiein use in humans." 

The drug agency agreed that there 
have been no reports of human cancer. 

Approximately 15 to 20 percent of 
Americans use laxatives at one rime or 
another, U.S. officials said. No one 
should take any laxative on a daily basis, 
especially one containing phenolph- 
thalein, which can cause complications 
including cramps and dian-hea in high 

The agency's proposed ban. notice of 
which will be published Tuesday in the 
Federal Register, follows the recent re- 
lease of studies indicating that rodents 
fed high amounts of the popular in- 
gredient — between 30 ana 1 00 times 
the recommended human dose — de- 
veloped various kinds of tumors and, in 
some cases, genetic damage. 

Those studies are the culmination of 
more than 20 years of consideration of 
five “‘stimulant laxative” agents; that 
is, those that stimulate the large intestine 
to contract, facilitating evacuation of 
the boueL 

• Agriculture Secretary 
Dan Glickman and the 
Food and Drug Adminis- 
tration have both, proposed 
legislation that would 
strengthen the govern- 
ment’s power to recall po- 
tentially tainted meat and 
punish companies that vi- 
olate federal food safety 
standards. • ( WP) 

• In a ruling that pgered 
jurors, a federal judge in 
North Carolina wiped out 
90 percent of a $5.5 million 
fraud verdict against Cap- 
ital Cities/ ABC Inc. for an 
expos*? accusing the Food 
Lion grocery chain of 
selling rotting meat. U.S. 

Judge Carlton Tilley re- 
duced the award to 
$315,000. giving Food Li- 
on 14 days to accept or face 
retrial on the punitive dam- 
ages portion of the case. 

Jurors in January' awarded 
Food Lion S5.5 million in 

S un i rive damages and 
1,402 in compensatory damages 
after the expos*? accused die Belgian- 
controlled chain of selling rat-gnawed 
cheese and spoiled meat. (AP J 

Cal.. AHmii' X fcifcc Fraiwr-Prc.-.' 

LONG LIFE — Marie-Louise Meilleur, a 
world age title contender, looking on at her 
117th birthday party in CorbeiL, Ontario. 

•An armored car driver suspected 
of taking S22 million was arrested 

when he crossed the border at 
Brownsville. Texas, from Mexico, 
die FBI said. The money was not 
immediately recovered, and author- 
ities do not know where it might be. 
The theft took place March 29 in 

Jacksonville, Florida. tAPl 

Deputies Defy 
Mexico Boycott 

?Jen m York Tunes Sen it e 

MEXICO CITY — Opposition law- 
makers have defied a boycott by the 
party that has ruled since the 1920s and 
inaugurated the first multiparty con- 
gress in modem Mexican nistory by 
themselves, throwing the nation’s new- 
born democracy into turmoil. 

In a high-spirited session Saturday. 
260 deputies in the lower house, all from 
the four parties that make up the op- 
position. declared the session open, 
sounded the roll call, and took a vote to 
elect leaders for two important com- 
mittees. „ , 

The seals of all 239 deputies of the 
governing Institutional Revolutionary 
Party, or PRL which controls the pres- 
idency. were empty. 

This congress is the first one in seven 
decades in which the Institutional Rev- 
olutionary Party does not hold a ma- 
jority in both houses. 

In elections July 6, the four oppo- 
sition parties won 261 of the 500 seats in 
the lower house, the Federal Chamber of 
Deputies, shattering the one-party sys- 


Institutional Revolutionary Party leg- 
islators called the inauguration illegal 
and threatened to hold an alternative 
ceremony that would include only- 
members of their delegation, raising the 
possibility' of a constitutional impasse. 

http ://www. 

Visit us on our site on the 
>• World Wide Web. 






Reunify the Koreas? Nationalist Fervor Aside, Not Everyone 

By Nicholas D. Kristof 

New York Times Swuc 

KUMGOK, South Korea — Sitting 
cross-legged on the linoleum floor of her 
living room, across from a plastic bas- 
ketball hoop with a picture or a beaming 
Michael Jordan that her son had stuck to 
the wall, Kim Sun Ye shrugged and 
wriggled in embarrassment and finally 
blurted out the heresy. 

“For ordinary people, reunification 
will cause a lot of problems," said Mrs. 
Kim, a 33-year-old farm wife in this 
village near the North Korean border. “I 
don't honestly know if it's a good 

Then she giggled again in horror and 

g aused, as if to see whether Mother 
;orea might strike her dead with a light- 
ning bolt. 

This heresy is becomingly increas- 
inglv common, but it still makes people 
profoundly uncomfortable. It challenges 
the holy teaching that Koreans are nur- 
tured on: that the overwhelming national 

goal must be to reunify with 

North Korea os soon as pos- 
sible. Some 

All across South Korea, on * 
city streets and in villages like a 

this, ordinary people like Mrs. 

Kim are beginning to voice such doubts 
as they think about reunification as 
something that might actually happen 
any rime because of the hunger and 
economic crisis in North Korea. And 
some are finding to their shock and 
dismay that reunification — Korea's sa- 
cred cause for half a century- — is not 
necessarily what they want right now. 

Some South Koreans are coming to 

regard reunification the way St. Au- 
gustine felt about virtue, in his prayer. 
"Please give me chastity, but not yet.” 

Kumgok is a village of about 700 
people, with a jutting mountain of dense 

There are old peasants like Kim Wan 
Seok. who has family members in the 
North and yearns for reunification as 
soon as possible so that he can visit his 
old home and bring his relatives to live 

Some South Koreans now regard reunification the way St. Augustine 
felt about virtue, in his prayer: ‘Please give me chastity, but not yet.’ 

forests behind it and green rice paddies 
unfurled in front of it. about two hours' 
drive northwest of Seoul on winding 
roads flanked by tank traps intended to 
stop any North Korean invasion. It is just 
one randomly chosen village, but it 
seems to be "tom by the same anibi- 

here in Kumgok. 

Then there are women like Suh My- 
ong Ok, who does not sound welcoming 
toward Mr. Kim's long-lost relatives, as 
she frets about the possibility of hordes 
of North Koreans descending on villages 
like this. "Just think about it.” she 

valence toward the North as is the rest of muttered, shaking her head. “All those 

the country, riven by fault lines that 
divide neighbor from neighbor. 

)eople flooding down here. It'd make 
ife very difficult for us.” 

Shin Jin Kyun, a carpenter who lives 
nearby, said he felt sorry for North 
Koreans but suggested that their mi no- 
ser is different. “It’s possible,” be said 
delicately, “that they are not so hon- 

■ The famine that is re- 
ine portedly sweeping the North 

, is now testing the traditional 

t. . patriotic mantras about all 

Koreans being members of 

the same family. The most obvious sa- 
viors for the hungry North are people in 
the South, and some South Koreans ar- 
gue that they should be doing more for 
their " brothers and sisters ” in the North. 
But for others, the talk about kinship is 
fine as long as it does not mean higher 

"Why should we give them money?” 
said Lee Han Gwee, a 69-year-old wid- 

Malaysia Marks 40 Years 
As Independent Nation 

But Mahathir Assails Foreign Speculators 

By Thomas Fuller 

Special to the Herald Tribune 

KUALA LUMPUR — Malaysians 
celebrated 40 years of independence on 
Sunday in a nation arguably more se- 
cure and prosperous than at any time in 
its modem history. 

But since the end of March, the coun- 
try ’s stock marker has dropped about 35 
percent, and since early July Its cur- 
rency. the ringgit, has plunged about 18 
percent against the dollar, casting a 
cloud over an economic growth of 8 
percent or better in the last nine years. 

In a speech marking the indepen- 
dence anniversary. Prime Minister Ma- 
hathir bin Mohamad suggested that 
speculators were ready to destroy the 
fou ndations of the economy. 

“Todav we have seen how easily 

* * He needs to focus on Soros because 
he wants to send a clear signal that all he 
is opposed to is financial speculators — 
and that he is very welcoming of for- 
eign direct investment,” said K. S. 
Jomo, a professor at the University of 

Attacks on the West are nothing new 
for Mr. Mahathir. The sharp-tongued 
prime minister has been consistent in 
condemning everything from Western 
hairstyles to declining discipline. 

• What is new is Malaysia's — and 
Mr. Mahathir's — drive to lure foreign 
companies and “intelligence ” workers 
to the country, and the~notion that this 
goal is perhaps imcompatible with his 
fiery rhetoric. 

Earlier this year the prime minister 
visited the United States, Japan and 
Europe to promote the Multimedia Su- 

foreigners deliberately bring down our percorridor, an industrial park near Ku- 

economy by undermining our currency 
and stock exchange." said Mr. Ma- 
hathir. 71. who has led the nation since 
1981. “What we have worked for in the 
past 40 years can be destroyed by them 
in a matter of weeks.” 

He predicted that there was a pos- 
sibility the economy would not attain 
the 8 percent growth this year that had 
been forecast, and that the" trade deficit 
might also worsen. 

Referring to “ferocious animals’ ' 
lurking in a borderless world, he added 
that “if we do not strive to protect our 
independence, directly or indirectly, co- 
lonialists will return to colonize us." 

This in a country whose neighbors, 
with the exception of Cambodia, are at 
peace, and whose gross domestic 
product, after dose to a decade of eco- 
nomic growth, stands per capita 50 
percent higher than Thailand’s. 

Recently the prime minister has tar- 
aeted George Soros, the founder of the 
§10 billion Quantum Fund, almost 
daily as the person who started the 
wave of speculative attacks. Mr. Ma- 
hathir has said he had proof of the 
American financier’s involvement. 
Other, unidentified foreigners are 
blamed for selling Malaysian stocks 
and currency short. 

ala Lumpur now under construction. 
Companies like Microsoft and Sun Mi- 
crosystems are committed to a role in 
the project, which promises to provide 
infrastructure for research and devel- 
opment cenrers, a multimedia uni- 
versity. and headquarters for multina- 
tional corporations. 

“Malaysia upholds the virtues of the 
new world order, believing -that the 
globe is collectively moving toward a 
'century of the world.' " says a page on 
the World Wide Web dedicated to the 

E roject. During his travels, Mr. Ma- 
aihir has indeed echoed such views, 
which seem to contrast sharply with his 
speech over the weekend. 

“In some ways the speech is not for 
foreign consumption.” Mr. Jomo said. 
"It’s basically for a domestic audi- 

■ Fireworks and Parade 

Fireworks brightened the skies over 
Kuala Lumpur at midnight Saturday as 
crowds at Merdeka Square hailed the 
country's independence from British 
rule on Aug. 31. 1957. Reuters re- 
ported. Early Sunday, thousands of 
people in colorful costumes paraded in 
front of the king, Tunku Ja'afar ibni 
Abdul Rahman, and Mr. Mahathir. 

■ V 

Vinom ThiJoAcsirts 

Malaysians parading 
past the reviewing 
stand in Merdeka 
Square in Kuala 
Lumpur as the nation 
celebrates 40 years of 
independence from 
British rule. At left. 
Prime Minister 
Mahathir receiving the 
national flag — which 
he dubbed "Jalur 
GemUang” (“Stripes 
of Glory") during the 
ceremonies. In a 
speech, the prime 
minister warned of 
“foreignehs” whose 
speculations threaten 
Malaysia's economy'. 

our who was sorting red peppers outsiife^, 
her house ro make kimeht. "The}/ shoald v=r 
work for their own food 'and money. ^ 
Thev have plenty of land up there. . /.• -i~- 

Lee Geum Lan, a 58-year-old woman,?: 
frowned and said: “We don’t even have = : 
enough food for ourselves. Why should ;; 
we send it to the North?” -‘A’:;? 

Yet there is sympathy for the Nonius rf 
well as suspicion, and arguments among 
the villagers are common. When Smn,Il 
Kyun. a pudgy 60-year-old with a fringe - 7 ± 
of gray around his bald pate,, suggested -»=_ 
that after reunification it would, oq, a ,:C 
mistake to allow North Koreans fo vaje, 
his neighbor. Park Ki Woon, looke^-aT;^ 
him in outrage. V 

* ’That would make the North Koreans 
our slaves!” Mr. Park declared, wavipg.-^; 
his hand. "South Korea would be mak-jfc 
ing North Korea a colony, just as we plM^ 
used ro be the slaves of Japan.’ 2 f: 

Mr. Shin shook his head sharply^If z 
North Korea offered just one candidate ' ?> 
for president of the reunified country „pe. . 
suggested ominously, that . candidate y. 
might well beat the handful of candi- 
dates who would compete from the ■ 
South- “So,” he added fiercely,“we 
could be ruled by North Koreans.”, a \ 

Mr. Park, a lean 44-year-old, paused 
and reflected on that. “Well,” he said 
mildly, ‘ ‘ there should be a three-io-fi ye- 
year transition before holding presidep- 
rial elections.” In that interim, he ept- 
plained, it would be best for Soijjth - 
Koreans to rule the country. n 

To be sure, the two Koreas are among ' 
the most nationalistic countries in 
world, and eventual reunification re-: 
mains a deeply felt patriotic goal. : . • 

Mr. Park saidf he worried about me 
cost of reunification and the economic 
consequences, but he added a common . 
mantra: "Everybody in Korea wants re- 
unification to happen as soon as pos- 
sible," he said. '‘That's obvious jeo 
everyone.” „■ 

At least it used to. be. In the last few • - 
years a growing number of Korean, apd 
Western studies began to look at rjie 1 
financial burden on West Germany from 
the absoiption of East Germany in 1990 : •• 
and began to calculate the cost to Soiuh 
Korea of reunifying with the North. The 
estimates of the cost vary, from about 
S 130 billion up to $2 trillion, butthey Jill 
suggest that me economic dislocations :: 
would be staggering for the South., ? . ’-'V; 

It is startling how many ordinary ’ 
people in South Korea, whether on 
street in Seoul or "in a village ; like 
Kumgok, can knowledgeably discuss 
trends in Germany's post-reunification 
gross national product. All this has left ’Jv 
South Koreans tom between the patji- . 
otic yearning for reunification and their \ 
reluctance to risk a surge in unemploy- . / 
ment and taxes. > • 

* ‘A lot of people in private will tell me ? 
what they regard as a confession: that 
they want reunification, but only after . 
they are dead.” said Roy Richard Grink- 
er, an anthropologist at George Wash- 
ington University who is completing a 
book on South Korean attitudes toward v 
the North. 

The tangle of complex feeliiKS to- : ' 
ward North Koreans is raising new ques^ 
dons about what would happen if the two • •. . 
nations did reunify’. ■ 

The division of the two Koreas re- 
mains the greatest remaining challenge 
left over from the Cold War. but the 
ambivalence in South Korea under- 
scores that reunification would be an 
immensely complex and painful process - A 
that could require a generation to com- 
plete. ■ 

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The 3Jo«i 
for Auk 

Sihanouk Seeks 
Peace Talks for 
Warring Foes 

Compiled hi Our SuffFnnu Dupak-hn 

SIEM REAP. Cambodia — King 
Norodom Sihanouk said Sunday that he 
could never accept dictatorship in his 
country and called for talks soon be- 
tween his ousted son. Prince Norodom 
Ranariddh, and Hun Sen. 

He also indicated that he was likely to 
be succeeded by one of his younger sons 
rather than Prince Ranariddh, the eldest, 
who was deposed as co-prime minister 
in a coup last month. 

King Sihanouk, who returned to Cam- 
bodia on Friday for the first rime since 
Mr. Hun Sen toppled Prince Ranariddh 
in early July, said he would be w illin g to 
mediate in talks between the two. 

“If all of you pity me, you should 
agree to meet each other and if you meet, 
I should help ro be a mediator, 1 1 the king 
said in reference to the rival factions 
while talking to villagers at his villa in 
the northwestern town of Siem Reap. 

“As monarch, I have an obligation to 
help the nation achieve national unity, 
peace, stability and independence.” the 
king said. He also appealed to both sides 
to stop fighting. 

The king, 74. flew to Siem Reap from 
China, where he had been undergoing 
medical treatment since February. 

King Sihanouk said he wanted the 
mediation talks to take place soon, but 
added that he realized Mr. Hun Sen 
might not be willing to meet Prince 
Ranariddh. *T am ready to hold a meet- 
ing," the king said. “Please do not say in 
a few months. Please say now." 

He also said that his likely successor 
was Prince Norodom Sihamoni. 44, 
Cambodia's ambassador in Paris to die 
UN Educational, Scientific and Cultural 
Organization. Prince Ranariddh, 53, has 
been in exile since the coup, and faces 
arrest if he returns. 

Under the constitution, the Cambod- 
ian monarch cannot appoint his suc- 
cessor. nor does the throne automatically 
pass to the eldest son. Instead, a state 
council including the president of the 
National Assembly, both prime minis- 
ters and several senior Buddhist clergy 
must pick a new monarch within seven 
days of the king's death. ( Reuters , AP ) 


SPY: Cairo Convicts 3 Israeli Arabs and an Egyptian of Espionage 

Beijing to Establish 
Ties With St Lucia 

BEUING — China said Sunday 
that it would establish formal dip- 
lomatic ties with the Caribbean island 
of St. Lucia on Monday, after its de- 
cision to sever ties with Taiwan. 

Beijing “highly appreciated" the 
decision by St. Lucia’s Labor gov- 
ernment to break off ties with Taiwan, 
a Foreign Ministry spokesman said. 
Taiwan which China regards as a 
renegade province, said Friday it had 
severed ties with St. Lucia in response 
to the island's efforts to court China. 

The change reduced the number of 
states that recognize Taipei's govern- 
ment to 30. f Reuters ) 

Retirees in China 
Protest Pensions 

BEUING — About 500 retired 
state enterprise workers earned out a 
demonstration outside government 
offices in a southwestern Chinese 
city, demanding higher pension pay- 
ments, a local official said Sunday. 

The protest in Dujiangyan, in 
Sichuan Province, followed a series of 
outbursts of social unrest across China 
in recent months. 

The 500 retired workers from gov- 
ernment enterprises gathered outside 
the city offices in Dujiangyan to de- 
mand higher pensions as well as the 
establishment of a relief fund for the 
old, a human rights group said. They 
were reportedly angered after city au- 
thorities raised wages for workers in 
stare companies in response to in- 
flation, but did not increase pen- 
sions. (Reuters i 

New Offer of Talks 
Is Made by Taleban 

KABUL — The Taleban Islamic 
movement announced over the week- 
end that it had captured the town of 
Guldara, north of here, and announced 
a new offer of peace talks to halt the 

civil war. The Taleban-controlled Ka- 
bul radio said the proposal for peace 
talks, conveyed to two United Nations 
envoys in the Pakistani capital. Is- 
lamabad, included a halt to all air 
strikes if the opposition forces re- 

Taleban had previously refused to 
hold talks with the opposition alliance 
unless the northern warlord General 
Abdul Malik released hundreds of 
prisoners. The new proposal is to hold 
separate unconditional talks with 
Ahmed Shah Masoud, the ousted gov- 
ernment's military commander, and 
the Shi'tie Muslim faction of Karim 
Khaiili. (Reuters I 

Thais Pick General 
Who Led Crackdown 

BANGKOK — Thailand’s annual 
military reshuffle, announced on the 
radio Sunday, included the promotion 
of an officer who commanded troops 
during the bloody crackdown on pro- 
testers in Bangkok in May 1992. 

General Chainarong Noonpakdi 
was promoted to armed forces chief of 
staff, the official radio said. He had 
been deputy chief. 

General Chainarong was com- 
mander of the First Army Region, 
which includes Bangkok, at the time 
of the 1992 demonstrations, when 
tens of thousands of people took to the 
streets nightly ro protest the appoint- 
ment of a former army commander as 
unelected prime minister. 

Troops under General Chain- 
arong ‘s command were sent to sup- 
press the protests following dashes 
between demonstrators and police. 
The government said 44 people were 
killed. Pro-democracy groups put (he 
death toll at more than 50 and the 
uounded in the hundreds. ( Reuters i 

For the Record 

The United States said over the 
weekend that it had received no word 
of a feared North Korean boycott of 
scheduled four-party talks next month 
aimed at securing a formal peace on 
the Korean Peninsula. f Rearers) 

Continued from Page 1 

Egyptian-Israeli relations had been 
strained by Egyptian criticism of Israel's 
presumed nuclear arsenal and the April 
1996 Israeli offensive in southern Leb- 
anon that killed nearly 200 people, most 
of them Lebanese civilians. 

Egypt has since taken a sharply crit- 
ical stand toward Mr. Netanayahu ’s hard 
line in negotiations with the Palestinians 
over terms of a final peace settlement. 

Earlier this year, for example, Egypt 
infuriated Israel by backing an Arab 
League resolution calling for a freeze on 
the made and cultural relations between 
Israel and Arab states. 

The Egyptian press, meanwhile, has 
been filled with invective against Mr. 
Netanyahu — depicted as a Nazi in some 
cartoons — that has prompted frequent 
protests from the Israeli and U.S. Em- 
bassies in Cairo. 

Israel took particular offense at the 
arrest of Mr. Azam because it occurred 
just as Israeli officials were arriving in 
Cairo for an annual Arab-Israeli eco- 
nomic summit under sponsorship of the 
United Slates. 

Egyptian officials have insisted that 
the case has nothing to do with politics 
and that the evidence against Mr. Azam 
was solid. 

The say the defendant was in league 
with the two Israeli Arab women, who 
allegedly seduced Mr. Ismail, the Egyp- 
tian co-worker, while the Egvptian'was 
receiving job training in Israel. 

Mr. Azam provided Mr. Ismail with 
the women's undergarments soaked in 
invisible ink. according to the prose- 

Mr. .Azam, who was working as a 
mechanic at the Textile factory at the time 
of his arresL has been depicted in Israel 
as a hapless political pawn. 

He is a member of Israel's Druze 
Muslim minority. He grew up in a vil- 
lage near the Sea of Galilee and dropped 
out of school in the 10th grade. 

In an interview’ Sarurday night. Mr. 
Netanyahu's spokesman. David Bar-Il- 
an. said the prime minister bad per- 
sonally assured Mr. Mubarak that Mr. 
Azam had no involvement with any Is- 
raeli government agency. 

“It does not inspire confidence, to say 
the least,” Mr. Bar-Dan said of the ver- 

■ Confusion Seen in Case 

It was not immediately clear why the 
other defendants who were convicted 
received longer sentences than Azam 
Azam, news agencies reported from 
Cairo. * 

In presenting their defease, the At- 
torneys representing the defendants said 
the men were victims of strained Arab- 
Israeli relations. . (Reuters. AP) 

;V: • • ‘ ‘ 

ASIANS: Markets Have Ability to Recover ^ 

Continued from Page 1 

and fixed- income research and strategy at 
Merrill Lynch & Co. in Singapore, sug- 
gests that the market turmoil is just a bit of 
self-examination before the next assault. 

“Southeast Asia is like a very’ ag- 
gressive company that expanded its bal- 
ance sheet much, much too fast,” he said. 
‘ ’They will prune bad investments before 
they renenter a solid growth period.” 

But even if Mr. Belchere is right, the 
slowdown has raised questions about 
American investors. Are they in it for the 
long term? For better and for worse? Or 
was it just a one-cycle stand? 

Asian markets have soared in part be- 
cause of the flood of U.S. investment, and 
overseas faith becomes self-fulfilling. 
The benchmark stock index in Manila 
soared to 3.447.6 points in February from 
550 in 1 990 in parr because of overseas 
fund managers betting that the Philippines 

would become a real tiger. If Americans 
and Europeans now retreat and nurse their 
wounds, the markets and economies wjll 
still recover, but it will take longer, arid 
they will not have the same pizazz. ^ 

Yet almost ail Asia experts expect-a 
recovery, with or without U.S. invest- 
ments, based on the economies’ general 
openness, lower lax rates and high rates 
of savings available for investment. 
They also point to strong education and 
support for entrepreneurship as well as 
the countries’ commitment to growth 
and foreign investment. . 

And now, floating currencies wjU 
force most regional economies to be- 
come even more flexible. 

“They have cut the link and now will 
have a period of strong growth and form 
the basis fora new business cycle," saiikfi. 
Graham Muirhead, a fund manager anc^V 
board director at HSBC .Asset Manage- 
mem in Hong Kong. 

Have you been to 


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* Going All-Out for Karadzic’s Rival 

Serfc President Is an Unlikely Champion of Dayton Accords 

. By Edward Cody 

Washington Pus? Sr nice 

SARAJEVO, Bosnia-Heizegovina 
-- By luck or design, the United States 

* has found a new. potentially decisive, 
champion in ks campaign to force Bos- 
nia's defiant Serbs to carry out their 

■ commitments under the Dayton peace 
agreement, the troubled 1995 accord 

•ending die war m the former 

Improbably, the champion is Bilj an a 
Plavsic, 67, a former biology professor 
. - who is president of the Serb Republic, 
v ■ Mrs. Plavsic has long been con- 
sidered one of the most radical of the 
.Serb ultranationalists who went to war 
in 1992 rather t h an be part of a Bosnian 
state with a Muslim majority. She co- 
' founded the Serbian Democratic Party 
■ — the extremist Bosnian Serbs’ polit- 

* ‘ tcai vehicle — and served unreservedly 
as vice president under Radovan Karad- 

' aic during the conflict in which his 
. government and anny were accused of 
commjmng numerous war crimes. 

Now, Mrs. Plavsic has pledged to 
Carry out the Dayton accords and is 
' locked in a power struggle with Mr. 
Karadzic and his diehard followers for 

• control of Republika Srpska, the Serb- 
run half of Bosnia that emerged from the 

- war with the trappings of an independ- 
" ent state. 

The struggle, which seems to be go- 
■ \ ing her way, has given the United States 
and its allies an unexpected chance to 
~ see Mr. Karadzic sidelined without bav- 
' ing to resort to a dangerous military 
operation to arrest him. 

Mr. Karadzic, the symbol and chief 
instigator of Serbs' refusal to reunite 
with their neighbors in regions of Bos- 
nia run by Muslims and Croats, was 
‘ forced to resign as president in July of 
last year, opening the way for Mrs. 
Plavsic's election in September. 

But from aposidon of unofficial lead- 

- ership, he has provided backbone to the 
Serbian government. Parliament and se- 

■ Curity forces still resisting cooperation 
’ with international efforts to promote 

joint Bosnian institutions and allow 
refugees to return to villages from 
.which they were expelled during the 

• war's ethnic purges. 

." One potential solution as the rein- 
_ v vigorated U.S. peacemaking effort got 
~ under way was to arrest Mr. Karadzic on 
r • the war crimes charges issued by the 
' international Criminal Tribunal for the 
Former Yugoslavia in The Hague. 

. The idea of grabbing the well-guarded 
Mr. Karadac has been studied at high 
Tevels in Washington and allied capitals 
and, according to sources, still is under 

■ consideration. But the U.S. military con- 

sistently has been reluctant to cany out 
such an operation, citing the dancer of 
casualties and the likelihood that the 
American soldiers in the peacekeeping 
force would be targets for retaliation. 

Plavsic s emergence as a foe of 
Mr. Karadzic’s, and the steady gath- 
ering of support she has found among 
Serbs tired of corruption and wartime 
deprivation, has opened a new, less dan- 
gerous path to removing Mr. Karadzic 
from power. As a result, the United 
States and its allies in the peacekeeping 
operation have gone all-out to support 
her diplomatically, economically and 

For the record, international officials 
maintain they are supporting the con- 
stitutionally elected president of the Re- 

any challenges to their authority. 

From her headquarters in Bania 
uka. 160 kilometers (100 miles) north- 

publika Srpska as she exercises lawful 
authority. In fact, they acknowledge, 
they are engaged with her in a strenuous 
effort to diminish the power of Mr. 
Karadzic's allies in the government 
Parliament and, particularly, the news 
media and the police forces, in anti- 
cipation of new elections called by Mrs. 
Plavsic for mid-October. 

Robert Gelbard. the U.S. envoy for 
Bosnia, declared after meeting hard- 
liners in Pale that “we are clearly at the 
most critical moment not only in the 
implementation of the Dayron agreement 
but in terms of the future” of the Serbian 
Republic. The .Associated Press reported. 
He said NATO forces would nor tolerate 

Luka. 160 kilometers ( 1 00 miles ) north- 
west of Sarajevo, Mrs. Plavsic organ- 
ized a show of loyalty last week from 
about half the Bosnian Serbian Army's 
high command. The army chief of staff. 
General Pero Colic, remained loyal to 
Mr. Karadzic, despite an offer from the 
U.S. military to fly him to Banja Luka. 

Perhaps more important, a growing 
number of local police commanders 
have indicated willingness to follow’ or- 
ders from Mrs. Plavsic's newly appoin- 
ted interior minister, Marko Pavic. Mr. 
Pa vie was named to run the security 
forces inplace of a Karadzic loyalist and 
hard-liner. Dragan Kijac, who had been 
interior minister — and still is, accord- 
ing to the government of Karadzic allies 


100 Nations Gather 
On Banning Mines 

» fit.- :: . 

- .. •' 
Vi- - /.V .%>.** '• . 

based in Pale, just outside Sarajevo. 
On the surface at least, most of i 

On the surface at least, most of the 
20,000 police in Republika Srpska still 
answer to Mr. Kijac. But that appears to 
be changing rapidly, particularly in the 
west. Some posts around Banja Luka 
have started reporting to Mr. Pavic and 
have promisea to cooperate with a 
United Nations monitoring and vetting 
program. Now the question is whether 
police commanders in the Karadzic- 
dominated east will join the movement 
started in the west. According to a senior 
diplomatic source, commanders at 
Bijeljina. a fanning and commercial 
hub that is the east’s main city, have 

Dn£o VcjawtcMgcncc Fruxr -Prrwc 

The U.S. envoy for Bosnia, Robert Gelbard, with the president of 
Republika Srpska, Biljana Plavsic, after weekend talks .in Banja Luka. 

OSLO — More than 100 coun- 
tries meet here Monday to begin 
drafting a treaty for a total and 
immediate ban on anti-personnel 
mines, which is due to be signed in 
Onowa in December. 

Russia and China will not take 
part in the discussions, which are 
due to continue until Sept. 19. 

TTie conference of foreign min- 
isters is pan of the so-called “Ot- 
tawa process,” an initiative by 
Canada to encourage countries to 
voluntarily renounce the produc- 
tion, sale,’ stocking, mansjxjn and 
use of the weapons. It is estimated 
that more than 110 million anti- 
personnel mines are currently de- 
ployed in 62 countries. (AFP) 

discussed switching loyalties. 

If the eastern wing's police com- 
manders do tip toward Mrs. Plavsic, that 
would have serious implications for Mr. 
Karadzic's safety and ability to move 

If Mr. Karadzic were to exit the polit- 
ical stage, the level of resistance from 
his allies in the government and Par- 
liament would probably drop sharply. 
That would leave the leadership to Mrs. 
Plavsic and, U.S. officials hope, open 

the way for increased cooperation in the 
difficult task of building the joint Bos- 
nian institutions agreed on when the 
guns fell silent in late 1995. 

This, however, is far from certain 
given Mrs. Plavsic’s past, according to 
diplomats with long experience in Bos- 
nia. She once endorsed a Karadzic idea 
ta wall off. Muslims in Sarajevo, they 
recall, and was considered among the 
most difficult of the leaders of the Bos- 
nian Serbs to deal with during the war. 

Turkish General 
Warns Cyprus 

Europe’s Pensions: Will Generation X Pay the Bill? 

By Craig R. Whitney 

New fort Times Service 

PARIS — The * ‘contract between the 
generations ' ' that underlies most nation- 
al pension systems in Europe, as well as 
Social Security in the United States, is 
headed inexorably for trouble, in less 
than a decade in many countries. 

When the post-World War II baby 
boom generation retires, younger gen- 
erations may not be able to keep their 
part of the bargain. In most developed 
countries, people are living longer while 
having fewer children, spelling disaster 
for “pay as you go*' pension systems 
that tax current workers to finance the 
retirement of their elders. 

The problem is even more acute in 
Europe than in America, because Euro- 
peans rely more heavily on government 
pensions. And Europeans of the gen- 
erations that experienced World War II 
and i is aftermath regard the generational 
contract as pan of a sacred commitment 

to eliminate the economic insecurities 
and injustices that helped spawn that 

In a hedonistic, materialistic age that 
takes peace for granted, “pay as you 
go” pension systems are soon going to 
require young people to sacrifice a good 
part of their own well-being to keep 
their elders living in style. Will they 
want to? 

Don’t bet on it, according to the 29- 
nation Organization for Economic Co- 
operation and Development in Paris, 
which is encouraging its members to 
start thinkin g now about switching to 
pension systems financed by invest- 
ment plans. Switching isn't easy. 

In 1995, when a conservative gov- 
ernment in France announced that it 
would require locomotive engineers on 
the state-operated railroads to work be- 
yond the age of 50 — like everyone else 
— before they could collect pensions, a 
national transportation strike shut down 
the country until the government backed 

off. Most people, according to polls, 
supported the strikers, thinking the gov- 
ernment was trying to weasel out of a 
half-century-old commitment to public 

This June, the French replaced the 
conservative government with a Social- 
ist one that immediately canceled tax 
incentives for private retirement invest- 
ment plans. 

The French system, too, is headed for 
trouble. French pensions pay retirees 
about 70 percent of their average wages. 
Right now, with about three workers for 
every person drawing a pension, financ- 
ing pensions requires an average payroll 
tax of about 25 percent of gross salary, 
with employers paying more than em- 

But in 2015, France will have only 
two workers per retiree; by 2030, ac- 
cording to recent projections, 30 million 
French workers and their employers 
will be expected to finance pensions for 
18.6 million retirees. Pure “pay as you 

go” would mean pure economic pain 
For those paying. 

The curve is similar in Japan and 
Germany, Italy and most other Euro- 
pean countries except Britain, where 
since the 1980s 5.5 million people have 
opted out of the state system, taking 
advantage of tax incentives offered by 
Conservative governments to encour- 
age private investment plans. 

The French and other Europeans con- 
sider their social- benefits as rights, and 
governments, mindful of the French ex- 
perience in 1995. are skittish about par- 
ing them. The result is that in most 
countries, few people are even aware of 
the looming gap in pension fiuiding.- 

The most obvious solution is what 
Conservative governments did in Bri- 
tain: encouraging people to provide for 
themselves, using Social Security as a 
fallback. But people can feel abused 
when, as in Britain, governments 
change and the incentives for private 
investment are reduced. 

ANKARA — A senior army 
commander was quoted Sunday as 
saying Turkey would bomb Rus- 
sian ground-to-air missiles in 
Cyprus if the weapons ordered by 
Greek Cypriot officials reached the 
divided Mediterranean island. 

“If the missiles reach the Greek 
Cypriots despite our efforts to pre- 
venr their deployment, the govern- 
ment will make a decision and we' 
will hit them." the unidentified 
general rold journalists at a recep- 
tion Saturday, Turkish newspapers 
reported. Greek Cypriots officials 
said they would buy the missiles ro 
improve air defenses against a pos- 
sible Turkish attack. But Ankara 
says the weapons are a threat to 
Turkish Cypriots. (AFP) 

Germany to Pay 
Czech War Victims 

PRAGUE — The Czech Repub- 
lic and Germany are holding secret 
talks on financial compensation to 
Czech Holocaust victims, the 
Czech newspaper Mlada fronts 
does reported. 

The daily said in its Saturday 
edition that' the first round of talks 
had begun last week, and were 
aimed at reaching an agreement in 
time for a visit to Prague in October 
by Foreign Minister Klaus Kinkel 
of Germany. The Czech Foreign 
Ministry refused to make any com- 
ment on the article. I Reuters J 

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page 8 






Bosnian Serbs Waver 

Tilt WASlfl\(.TO\ PUTT ^0 Grips With Crime in South Africa 

— - i ■ ^ " ■ Lie min nnho 

U.S. troops and other NATO peace- 
®cepers came under attack last week 
from a mob of angry Serbs. The riot, 
which injured two U.S. soldiers, is 
ooond to raise fears that the force is 
peing sucked into a Somalia-style en- 
tanglement. But Bosnia is not Somalia, 
and recent events, while not without 
danger, allow for some optimism. 

The Dayton accords were intended 
to stitch together a nation tom apart by 
4o months of terrible war and geno- 
cidal ethnic persecution. A Muslim- 
Croat federation, on the one hand, and 
a Serbian republic, on the other, were 
each given considerable autonomy, but 
were also each expected to work to- 
gether toward the creation of national 
institutions. But on the Serbian side, 
the former president and indicted war 
criminal Radovan Karadzic and his 
supporters have managed to stall any 
progress, working against the peace 
accords and the NATO peacekeepers. 

Two important things now appear to 
be changing. Most important is that 
many Serbs seem to be growing tired 
of Mr. Karadzic and his corruption and 
as a result are more inclined to support 
his successor. President Biljona 
Plavsic, herself a Serbian nationalist 
but one who is willing to support the 
Dayton agreement. 

U.S. officials say statistics back up 
Serbs' feeling that they are growing 
more isolated and impoverished, 
thanks to Mr. Karadzic's defiance, 
while their neighbors begin to recover 
from the war. Since war's end. the total 
economic output in the Muslim-Croat 
Federation has doubted — reaching by 
the end of this year something like half 
its prewar level — while the Serbian 

republic languishes. Unemployment in 
the federation has dropped from 90 to 
50 percent, while among Serbs it re- 
mains at 90 percent. And no wonder. 
Barely 3 percent of last year's SI. 36 
billion in official reconstruction aid to 
Bosnia, from America and elsewhere, 
went to the Serbian republic. 

The second change is NATO’s more 
vigorous commitment to enforce the 
Dayton accords. In July British forces 
arrested one alleged war criminal and 
shot another who resisted arrest West- 
ern officials have made clear that re- 
construction aid will begin flowing if 
Mrs. Plavsic wins out in her power 
struggle with her predecessor. On 
Thursday, the day Karadzic supporters 
rioted against NATO troops, 300 Serbs 
.in another pan of town were attending 
a seminar on how to qualify for West- 
ern small-business loans. And NATO 
troops increasingly have bol-stered 
Mrs. Plavsic's forces as they gain con- 
trol of local police stations and tele- 
vision transmitters. 

This greater activism is not without 
risk, as the two injuries suggest Mr. 
Karadzic's allies have been brazenly 
inciting anti-NATO rioting on radio 
stations they control. Terrorist attacks 
could increase. There are dozens of 
ways Dayton could fail, particularly as 
long as NATO troops remain hobbled 
by tiie U.S. commitment to withdraw 
by next summer. But the more reckless 
course, in the long run. would be to let 
the war criminals run free. Economics 
and war weariness are turning a grow- 
ing segment of the population toward 
peace. NATO is right to support and 
encourage that trend. 


The Sad Espy Case 

It is sad to see a young politician's 
promising career go down the drain in 
a personal corruption scandal. But last 
week's indictment of Mike Espy can- 
not be dismissed as the petty product of 
an overreaching independent counsel, 
as Mr. Espy’s supporters porrray it. He 
is charged with soliciting and accept- 
ing gifts from food companies that he 
regulated as secretary of agriculture. 
The total value of the gifts was small, 
under $40,000. but the alleged crime 
was a serious breach of public trust. 

The independent counsel. Donald 
Smaltz. charges that in addition to ac- 
cepting sports tickets, cross-country 
nips, cash payments to his girlfriend 
and a $10,000 contribution to his 
brother's congressional campaign, Mr. 
Espy engaged in an illegal cover-up of 
his activities that included ordering an 
employee to alter a document being 
sought by the Agriculture Depart- 
ment's inspector general. 

The prosecution does not accuse Mr. 
Espy of granting any favors to the 
companies whose generosity he en- 
joyed. But the federal gratuities statutes 
cited do not require any quid pro quo. 

and for a very good reason. Americans 
have a right to have public officials who 
are financially unbeholden to the in- 
terests they oversee. As it is. the public 
may never know whether the nation's 
school lunch program was more in- 
clined to buy raisins from Sun-Diamond 
because of the company's largesse to 
Mr. Espy, or if his coziness with the 
poultry giant Tyson Foods is the reason 
he hesitated to remove holdover ap- 
pointees who were helping to block 
stricter regulation of meat and poultry. 

The justice system will decide 
Espy's criminal liability. Meanwhile, 
it should be clear that this is also an 
indictment of .the compromising 
money culture on Capitol Hill. Before 
joining the cabinet, Mr. Espy served 
six years in Congress. Despite strong 
gift bans enacted after his departure, 
some lawmakers still find ways to 
sponge off those with a financial in- 
terest in their official actions. What the 
special counsel is saying, in effect, is 
that when Mr. Espy joined the cabinet, 
he continued some of the bad habits he 
picked up as a member of the House. 


Smoking On-Screen 

Powers that be in the film industry 
do not take kindly ro Washington pols 
who lecture ihem on morals for movie- 
making. But resisiance io past, often 
politically motivated tirades against its 
■“depravity” in exploiting violence and 
sex need not be reflexively repealed in 
the unfolding debate over on-screen 
smoking. The Clinton administration 
has begun meeting privately with Hol- 
lywood executives to express concerns 
about a step-up in the number of images 
of such film mega- heroes as John Tra- 
volta. Julia Roberts and Winona Ryder 
seeking to lend nuance to their char- 
acters by lighting up cigarettes. 

Fully half of major movies ttom 
1990 to 1995 featured a central char- 
acter puffing on some type of tobacco, 
according to one study, as do live of 
this summer's box office leaders. 

To health advocates and many fa- 
miliar with the glamorous rituals built 
around cigarettes in coumfess films 
before the" 1954 surgeon general's re- 
port on smoking, this seems an odd 
instance of retrograde motion. 

Since the days when Humphrey 
Bogan and Bette Davis ruled the fan 
magazines, smoking has been used ro 
convey sex appeal, nonchalance, vil- 
lainy and anxiety, as well as to give 
actors the all-important something to 
do with their hands. Directors would 
understandably resent any limits on 
their options in the realms of dramatic 
technique or content. And of course 
any government fiat that presumed io 

prescribe what are suitable props on a 
privately owned Hollywood set would 
be objectionable and an offense against 
the First Amendment 

But the issue of smoking and wheth- 
er Hollywood role models have an im- 
pact on American behavior is, in a key 
respect, far more manageable than the 
issues of violence and sex. Those last 
tw o are the main attractions of much of 
Hollywood's fare; withdrawing them 
suddenly might require drastic alter- 
ations in a movie's plot and target mar- 
ket. An actor or actress's lighting -up 
ritual, by contrast, is often peripheral, 
and one of many alternative actions 
available to imaginative actors. 

Jay Winsten — the media specialist 
at the Harvard School of Public Health, 
who had tremendous success with his 
1980$ campaign to persuade film and 
television producers to inject "desig- 
nated drivers” in their scenes involving 
alcohol — says he has heard produced 
soy they would have a difficult time 
walking’ away from such meat and pota- 
toes as sex and violence, but that giving 
up celluloid cigarettes would have vir- 
tually no impact on an entertainment 
conglomerate's bottom line. And given 
the proven lethality of tobacco, it hardly 
strikes us as just one more initiative by 
the Ministry of Correctness. 

The government officials concerned 
with youth smoking are confining their 
film industry approaches to jawbon- 
ing. We hope that this will be enough. 


4 w tvmmriiiwi m* *4 





RICHARD McCLEAN. PiiNniw JL. i nu-J Eu\ nine 
MICHAEL GETLER. Envutn c Editor 

• WALTER WELLS. .tfan, am EAa.r* PAUL HORVJTZ. ,W,jii.i!;ihc Editor 

CARL GEWTRTZ. AiMUte Edit, ts • ROBERT J. DONAHUE. ,f'r/.v Eilihtml Pages 
• JONATHAN GAGE Bwiws* rind Twain- Eihnw 
• RENE BONDY. Dcptav Publisher 

• JAMES .Vk-LEOD. Aihmisun Dtntftv • DIDCER BRUN. Cvsuhan m Dim tor 
Dim ft i irdc id PMuutiim Richard MeCkim 

B«rau.Hul EyaldTnhtuii’ IS1 Avenue Charkf.-di^aillLe. «52l NeuilIj-.siir.Sjine. France. 

IntiTOS aiHfP'v E-MaiJ' ihKtt lbicren 

"JOHANNESBURG — Crime, or 
J more precisely a rising fear of crime, 
has become the most serious threat to 
the success of South Africa's fledgling 
democratic government. 

Even a short-time visitor to the coun- 
try's chief commercial city is struck by 
its beleaguered atmosphere. Tour 
guides warn you not to venture out 
alone unless you know where you are 
going. Many businesses have fled to the 
suburbs. Whole blocks of apartments 
have been taken over by drug dealers. 

Residents of the tonier suburbs live 
behind walls topped with barbed wire 
and protected by private security firms, 
their bedrooms sealed off by internal 
rape-prevention gates. 

The statistics are appalling. South 
Africa's murder rate is eight times that 
of the United States, its rape rate three 
times as high. But the crimes that most 
disturb residents are brazen carjack- 
ings, hijackings and robberies that can 
bit literally anyone. 

The president of the nation's top 
constitutional court was robbed at gun- 
point in his own driveway. The police 
superintendent of a crime-ridden slum 
was robbed of his car and valuables by 
gun-toting thugs. 

Various police stations have been 
looted of on automated teller machine, 
a supply of cash and diamonds, and 

By Philip M. Boffey 

electronic equipment in wftar were 
either brazen robberies or inside jobs. 

The only encouraging trend is that 
crime is no longer spiraling out of 
control. The latest quarterly figures 
show all categories of serious crime 
either holding steady or declining, al- 
beit at high levels. 

Government officials are not certain 
whether crime has really got a lot worse 
than under the previous apartheid re- 
gime or has simply invaded previously 
white areas that had been protected by a 
repressive police state. 

Some officials contend that the prob- 
lem has been exaggerated. But there is 
no doubt that fear of crime is ha ving an 
adverse impacL 

People who emigrate cite it as one of 
their reasons for leaving. Businesses 
cite it as a deterrent to expanding their 
operations. Government officials fear 
that it may deter badly needed foreign 

“Crime is probably the most serious 
obstacle in the path of our political, 
economic and social transformation,” 
says Azha r Cachalia, the central gov- 
ernment's secretary for safety and se- 
curity. “Democracy can only flourish 
where our people feel safe and in fact 

are safe in their homes, their businesses lice escort kept p^ic^oroSng 1 ^ 
and their streets.' 1 The govei^enws Jg 1 ”* to 

The roots of the crime problem Ue problem with a 1^ t^m fe& ^ on . 
deep. Widespread poverty, a 40 percent improve the ™V"?deveIop effective 
unemployment rate and appalling so- ahsin of police and * cg ccifl _ 
ejal conditions are a breeding ground interaction bewee Pf 
for criminals who now .have easy ac- mumnes that have lon s «■« . 

cess to richer neighborhoods with their hated &e men murur - ^ 

tempting targets. Illegal guns are plen- r * Judgement and 

tiful. and more open borders since brought m toimpro ^ d *. u j !an | S 
apartheid have allowed criminal syn- allocation of c tat ;ons over- 

fetes to Hood the country with drugs ^ Ability to keep their 

and to traffic in stolen cats, settntg ofTa «#* .^Scteson patrol, 
wave of carjackings. pohee aaa c J evidence 

The police in some areas seem over- At several srano w support 

whelmed, with detectives handling up that flssjjkjj® ^. ic f eve Q providing 

to SO cases at a time, four times the and help the pol ■ ■ Rut it will 
number deemed manageable. Some tips that help catch c 
poUce engage in criminal activities and all teke am* ncw , ice 

corruption themselves. wean' wnne. awn . V ; ^ 

“So far the police have been in- officers wdians are being turea. 

credibly inattentive and ineffective,' and the on Johannes- 

says William Bratton, the former New tional police resoiwws on Johannes 

York Citv police commissioner, who burg and a few 
now runs a private consulting firm that areas that have a disp -rua, 

sought to advise the South Africans on pact on the nation simage abroad Thai 
crime control could dram resources from some ot me 

tr Indeed! on a half-hour tour of down- poor black areas that helped vote the 
town Johannesburg in the company of Mandela government into office, 
a police official. I saw little evidence It could be a risky political cho ce 
of a police presence. The most visible but it is one that the government r 
sign of authority was in a violence- must make if South Africa s promising 
ridden suburban slum where military democratic revolution is to succeed. 

tmnn< mnnnerf mnrfhlneks and mv no- The New Yi-rk Times 

whelmed, with detectives handling up 
to SO cases at a time, four times the 
number deemed manageable. Some 
police engage in criminal activities and 
corruption themselves. 

“So far the police have been in- 
credibly inattentive and ineffective,” 
says William Bratton, the former New 
York City police commissioner, who 
now runs a private consulting firm that 
sought to advise the South Africans on 
crime control. 

Indeed, on a half-hour tour of down- 
town Johannesburg in the company of 
a police official, I saw little evidence 
of a police presence. The most visible 
sign of authority was in a violence- 
ridden suburban slum where military 
troops manned roadblocks and my po- 

Remember Sept. 1: The Time for Action Is at the Beginning 

J ERUSALEM — The victims 
and devastations of war are 
recalled when it ends. Then vic- 
tors celebrate and the van- 
quished grieve, but both mourn 
their losses. And perhaps both 
may come to admit die sense- 
lessness of the slaughter. The 
time to deter war. of course, is at 
the beginning. 

On Sept, 1, 1939, 21 years 
after the end of World War l, 
Hitler launched Germany's ag- 
gression against Poland, trig- 
gering World War H. In the 
preceding weeks the Nazi pro- 
paganda machine had bom- 
barded Poland with inflamma- 
tory allegations. 

Ir accused the Polish govern- 
ment of a chain of terror acts 
against the German minority. 
.And in its note of Sept. 3 re- 
acting to the British declaration 
of war. the German Foreign 
Ministry described the situation 
as intolerable — “‘similar to die 
state of affairs prevailing in Brit- 
ish-administered Palestine." 

In fact, most of the incidents 
in Poland were staged by Nazi 
agents, culminating in the raid 
on the German radio station in 
Gleiwitz tGliwice), carried out 
by a Gentian commando dis- 
guised in Polish uniforms. 

Allied entreaties, counseling 
moderation, encouraged Hitler 
in his stridency and in his belief 
in the decadence and inesol- 
ureness of the West. 

The annexation of Austria in 
March 1938 had not caused 
more than a ripple in the in- 
ternational community. In Sep- 
tember 1938 the allies delivered 
Sudeten land to Hitler in Mu- 
nich on a paper platter. In 

By Gideon Rafael 

March 1939, the Wehrmacht 
marched into truncated Czech- 

The Nazi persecution of the 
Jews, steadily growing in vehe- 
mence, reached its high point in 
November 1938 on “Kristall- 
nacht,” the night the storm 
troopers burned the synagogues 
and looted Jewish stores and 

The outrage aroused consid- 
erable dismay in the Western 
world but failed to evoke prac- 
tical action, either in the form of 

The way to deter 
war is not 

sanctions or of granting refuge 
to the persecuted. 

The Fires tit that night by 
Hitler’s goons were the prelude 
to the firestorm unleashed by 
him - a year later, and which in 
the end devoured his thousand- 
year Reich. 

The prewar crisis reached its 
climax in the last week of Au- 
gust 1939 with Ribbentrop's 
signing in Moscow of die Hitler- 
Stalin pact. When die news ex- 
ploded in the press, I happened 
to be in Geneva attending the 
Zionisr Congress. Gloom and 
despair descended on it. 

The- congress ended with a 
tearful farewell address by 
Chaim Weizmann. then pres- 
ident of the World Zionist Or- 
ganization. Choking with emo- 
tion. he. took leave of the 

assembled delegates with the 
words; “We are entering a long 
dark night. Who knows how 
many of us will be left to meet 
again when the dawn breaks?" 

I was charged at the time with 
a mission by the Hagnnah. the 
Jewish self-defense ’’organiza- 
tion in Palestine, to help or- 
ganize in Europe what the Brit- 
ish government called “illegal 

Palestine, according to the 
League of Nations mandate, was 
ro serve as a safe haven for Jews, 
but it was practically barred by 
its British administration to the 
stream of refugees trying to es- 
cape Nazi persecutions. 

On rickety tramp steamers we 
embarked refugees trying to run 
the British naval blockade off 
the coast of Palestine. Those 
whom the Haganah landing 
parties succeeded in bringing 
ashore celebrated their escape 
from the yaws of the Nazi mon- 
ster. They becanie valiant build- 
ers ,.ahd defenders of Israel. 
Those whd were captured by His 
Majesty’s Navy were sent back 
to detention camps abroad. 

Exactly 50 years ago, the 
British government initiated the 
most revolting deportation of 
all. Some 2,000 “illegals,” pas- 
sengers of the refugee ship bx- 
odus. were sent back to camps 
in Germany. 

Nothing contributed more 
than that Inhuman act to ex- 
pedite Britain's exodus from 
Palestine in May 1948 when 
newly independent Israel suc- 
ceeded its administration. 

Until the beginning of the 

war, Nazi Germany, in its desire 
to get rid of the Jews, encour- 
aged their emigration, extract- 
ing from the refugees an ex- 
orbitant exit tax. The real 
problem, however, was not the 
opportunity of departure but the 
possibility of arrival, since most 
countries in the world, while 
commiserating with die plight of 
the Jews, denied them refuge. 

The protocol of the heinous 
Wannsee Conference, held in 
February 1942, offers an un- 
usual insight into the workings 
of the Nazi machine. 

Reinband Heydricb, the in- 
famous head of the Gestapo, 
presiding over a conference 
convened to organize the liquid- 
ation of European Jewry, ex- 
plained. when presenting the 
plan of the devuish operation, 
that since there were no coun- 
tries willing to receive tile Jews, 
the “‘final solution” of the prob- 
lem of the Jews living in ter- 
ritories under German control 
must be carried out in a sys- 
tematic and well organized way 
and not haphazardly, as before. 

Europe would be swept clean 
of its Jews from West to East, 
proclaimed Heydrich, not en- 
countering a single word of de- 
murral from the assembled of- 
ficials. Thereupon Eichmann's 
trains started to roll, the gas 
chambers to operate and the 
ovens to burn. 

In the last few days of die 
fateful final week of August 
1939. I managed to make a 
quick trip to Vienna to help 
move a shipment of refugees 
destined to sail down the 
Danube to a small Romanian 
port on the Black Sea. One of the 

Back From Tibet and Hoping People Will Listen 

Wolf, the Republican 
congressman from northern 
Virginia, has a conscience. He 
assumes that his fellow Amer- 
icans do, too. and thar if he tells 
them how bad things are in 
countries the)’ seldom hear 
about, they will do something 
about it. 

He is inevitably considered 
naive. He doesn't mind. His 
faith in his fellow man comes 
from his faith in God. He is a 
devout Presbyterian who be- 
lieves passionately in good 
works and has raised his five 
children to volunteer on behalf 
of the unfortunate. 

Mr. Wolf is just back from 
another of his trips to difficult, 
dangerous places. This time it 
was Tibet, which has been 
groaning under the Chinese 
yoke. He slipped in on an or- 
dinary tourist visa, which did 
nor identify him as a member of 
Congress. Tibetans risked their 
lives to tell him about the op- 
pression and religious persecu- 
tion they are suffering. 

His press conference after- 
ward at the National Press Club 
was packed — perhaps because 
it is August, and the news 
drought is severe. He told an 
international audience that 
“China is squeezing the life out 
of Tibet" He added, ‘it is un- 
speakably brutal." 

Mr. Wolf's success in rous- 
ing the American people is still 
to be seen, but he got China’s 
attention. The New China News 
Agency issued a statement of 

By Mary McGrory 

outrage from a Tibetan official 
who accused Mr. Wolf of being 
a troublemaker and a bad re- 
porter: There is no religious 
persecution and all is well with 
happy Tibetans. Mr. Wolf was, 
of course, delighted with ad- 
ditional notice to his cause. 

Some reporters may have 
been goaded into attendance at 
the press conference by one of 
Mr. Wolf s typically reproach- 
ful letters calling on the recip- 
ient to fulfill a moral obligation 
by spreading the word about 
wharever ghastly situation he 
has jus r observed 

Last January, Mr. Wolf went 
to East Timor and brought back 
an account of killing that he 
thought President Bill Clinton 
should do something about. He 
later wrote to him in terms that 
show he has heeded the counsel 
of the 15th century German 
mystic Thomas a Kempis: 
“Fawn not upon the great." 

In Mr. Wolfs letter of May 
29. he told the president that he 
better shape up on East Timor 
because people are making con- 
nections between U.S. inaction 
in that wretched land and ihe 
campaign scandal of the White 
House raking in millions from 
Asians with axes to grind. 

“Respectfully but with 
candor. Mr. President, many 
believe your administration has 
adopted or changed its policy 
with regard to Indonesia and 
East Timor because of influ- 
ence exened by the Riadys and 

Playing Along With Milosevic Isn’t the Answer 

T HE U.S. government remains stuck on the notion that Dayton 
implementation depends on Slobodan Milosevic. The logic 
goes that Mr. Milosevic made Dayton happen, and that if he is not 
seriously engaged the Bosnian Serbs will not cooperate. In short, 
the nationalists and opportunists who made the war are the only 
ones who can make the peace. 

But we do not have to be in thrall to nationalist leaders. We can 
expect few shortcuts from those who gave us the war. For real 
progress to continue, the West is not going to be able to avoid some 
heavy lifting, including the seizure of indicted war criminals. 

— Morton I. Abramowitz. in The Washington Post. 

as a result of the for profit re- 
lationship which developed be- 
tween the Lippo Group and Mr. 
Web Hubble (sic). Press reports 
of Mr. Hubble's personal visit 
to East Timor have only fueled 
this belief. I do not know if this 
is true ... I do know, however, 
that we have no effective policy 
... in East Timor.” 

Mr. Wolf gives himself a 
missionary's license to speak 
truth to the mighty. The ap- 
palling conditions he describes 
vindicate his frankness and his 

His Virginia constituency 
may not relate to his anguish 
over such places as El Salvador, 
Burma Sudan. Bosnia, 
Chechnya and Ethiopia, but Mr. 
Wolf keeps both reel on the 
ground — or rather, on the high- 
way — at ail times. He is chair- 
man of the House Appropri- 
ations subcommittee on 
transportation, a post that gives 
him great power. And his con- 
stituent service — watching over 
the rich is of the many federal 
workers who live in Virginia’s 
10th District — ib famous. 

His evolution from "pothole 
politician'* to watchman on ihe 
ramparts, of world freedom 
happened gradually. First he 
went to Ethiopia in 1984 with 
Representative Tonv Hall, 
Democrat of Ohio, a 'crusader 
against hunger who is his best 
friend in.Congress and a fellow 
memberof a House Bible study 
group. They went to Romania 
together and sow misery that 
made them come home and pro- 
mote a bill against most- 
favored-nation treatment for the 
Ceausescu government. Since 
then, Mr. Wolf has never 
looked back or lost hope. 

At his press conference, he 
urged Americans to write letters 
to Tibetan political prisoners. 
Based on the. experience with 
Soviet prisoners of conscience, 
he says the Tibetans might not 
get the letters, but wardens 
made conscious of outside ob- 

servation might give better 

He wants more congressional 
delegations in Tibet so that 
Chinese overlords will know 
that the world has not forgotten. 
And he can see the day when 
most-favored-nation status will 
be denied to China. The Amer- 
ican people are way ahead of 
Congress, their president and 
the business community, ac- 
cording to polls. One showed 
overwhelming opposition to 
most-favored status for C hina . 
67 percent to 18 percent. 

Mr. WolFs inspiration is 
William Wllberforce. a prom- 
inent 19th century British politi- 
cian who spent his life working 
to abolish the slave trade. It took 
34 years for Parliament to out- 
law it, a month after Wiiber- 
force's death. “It just takes 
time," says Mr. Wolf. 

The Washington Post 

ships chartered by our organi-; 
zation was to pick them up for 
their voyage to Palestine. The; 
ship, which had previously com- . 
pleted a successful landing, was 
being outfitted in Marseille. 

I returned to Paris after a 
short stop in Rotterdam, where 
another ship was waiting to sail 
with 1.200 refugees due to are 
rive from Germany on sailing 
day.TTie news of theinvasion of 
Poland reached us in Holland-, 
forcing us to abandon the 
planned rescue operation. A 
new assignment awaited me in* 
Paris. I was to go io Marseille to 
. expedite the sailing of our ship 
: bound for Romania. 

TheGreek owners of the shipT 

■ amenable pirates by profession 
: and proclivity, were hesitant to 
, rake the risk in wartime, and 

- tried to delay the sailing as long 
. as possible. Finally we managed 

- to persuade them! by means of 

- an enticing cash bon us, to weigh 

1 anchor. Leaving port with sol-. 

- emn promises to take on the 
r refugees in the Romanian pen. 

of Sulina, they absconded tbf 
i lucrative cabotage trade from 
. Algiers to Tunis. ( , 

The refugees, on over, 

■ crowded Danube steamers, had' 

• reached thelron Gate, the border 
i between Yugoslavia and Ro-' 
r mama.- Bucharest denied them- 
: passage, and they were stranded ' 

in KJadovo. The Yugoslav au- 
thorities permitted them to dis- 
embark and hibernate in a camp 
on the bank of the river. 

In June 19 40 the German' 
army, invading Yugoslavia, de- 
tected the reftigees (who had 
been allowed to leave Austria) 
stranded in KJadovo. Instead of 
asking the Romanian govern- 
ment to allow their transit, they 
loaded them on trucks and r- 
dumped them on the banks of . 
the River Sa va. Jliere a German 
Einsatzkommando liquidated 
them — Nazi slang for shooting. 
800 men, women and childreq,- 
One solitary survivor escaped, 
the carnage to tell the story. ; 

It was no more than a drop in; 
the ocean of blood shed bv‘ 
Hitler Germany in which aboi^i 
40 million victims — soldiers' 
and civilians — drowned*, 
among them one third of the. 
Jewish people. i 

The way to deter war is not 
appeasement, and the time ta 
deter it is at and before the be!-!! 
ginning — in Rwanda. Algeria;'! V 
Bosnia, wherever. Remembejtfc 
Sept 1. so as to spare succeed!^ * 
ing generations the need to ereejj 
new war memorials. , 

The writer, a former ambus*-, 
sador of Israel ro the United 
Nations and a former director- 
general of its Foreign Ministry^ 
contributed this comment to the 
International Herald Tribune. 







ige ; 



t » 

, J ‘ 


1897: Parisians Cheer irs decision on the moratorium 
dadtc , r- request until it has completed its 

PAR ? — Faure re “ ■ scheme for the radical reform of 

turned to Pans from his visit to German public finances inc ud 
Russia y^itfday [Aug. 31] and ing the balancing of the bud^t 
was accorded arecepuon such as the reform of the currencv ^L- 
none of his predecessors ever the issue of foreign loans ' .t 
enjoyed. The gay city pur on her 
most festive. appearance and the iQi*- i_ .» rr , 
inhabitants poured in throngs to iuarsnaH lalks 

s -r, 4 ~ «r«n> 

had rolled into the ElysSe, they fra Marshall olan ^ exptrct ' 
continued to vent tbeirdelighf by frX, „ n S, ®-^ ,s f ance 
singing the “Marseillaise'’ and w t0 American w¥ IOn lv 
the Russian National Anthem. hdpEuroM^ to 
Yesterday may tmly be said to voys indK wm e S w ^ ' 
have been an AUionce F«e. “sSS, S C ^ 

1922: Belgian Scheme F- Kennan. UmTsi™' OcZrf • 

PARIS - America has once Sta°here ' 1 P la " n < 
again played a leading role in the creased baek-to-work 5 f 
setttemem of a European dis- fore American aid wn? k' n ^4 
pute. largely though her efforts, available. They de .1 
the Reparation Commission Britain resumetiiel nd ,h *» 
came to a unanimous decision to Donation of rnai c\- ' 


IDs Commission agrees to defer closely Us distribution mwi * 

l up tj 






Ahoy, Snobs: What’s Afoot With Effete? 

By Charles Hanington Elster 

New Kurt Times Setvice 

i IT ERE S a one-word vocabulary 
J- Xfest: What is the precise meaning 
ot Is it (a) womanly; (b) worn 
out (Cl ovenefined; (d) snobbish, or 
I decadent? If you're thinking (f) all 
ot the above, you're panly righi and 
partly wrong. 

Effete comes from the Latin effetus, 
worn out by bearing children, unable to 
produce offspring, from ex-. ouu and 
fetus, productive. The word appeared 
in the mid- 1600s and was first applied 
to animals, plants, and soil to mean 
barren; past bearing. 

The Oxford English Dictionary la- 
bels this sense obsolete and shows that 
since the late 18th century effete has 
been used figuratively, of persons, to 
mean weak, ineffectual, superannuated 
and, of things or systems, to mean bar- 
ren of results, fruitless, unproductive. 
‘If they find the old Governments ef- 
fete. worn out.” wrote" Edmund Burke 
in 1790, “they may seek new ones.” 
Effete is a victim of what I call the 
sounds-like syndrome.” This is when 
a word, usually one a bit more lofty than 
most people can handle, becomes con- 
fused with and then used as a pretentious 
substitute for another word that is sim- 
ilar in sound but different in sense. 

If the error occurs often enough (es- 
pecially on radio and TV), eventually 
we lose one perfectly good word with a 
distinct role in the Language and wind 
. up with two words that mean the same 
thing — one the common word, the 
other a meddlesome, tenacious upstart 
Here are some examples: reluctant 
(unwilling) and reticent (unwilling to 
speak ); deprecate (disapprove I and de- 
preciate (lower in value); foreboding 
(ominous) and forbidding (dangerous 
or hostile); precipitous (steep ) and pre- 

* cipitate ( sudden or rash): fortuitous (by 
c hance ) and fortunate ( lucky). 

• These confounded soundalikes are 
not synonymous. Yet every day, one 

member of each pair is wrenched from 
its customary place in the language and 
forced lo do the work of the oUict as if 
it were a nut or bolt in a piece of 
machinery that could serve as well 
bolding one pan logerher as another. 

But words are not like nuts and bolts 
mass-produced, nondescript, inter- 
changeable. They are more like the 
people who use them: individual, with 
a singular history and personality we 
should respect, not demean. 

Why do such confusions happen? 

First, because speech is largely in- 
formal. Carelessness is often over- 

For Americans, the 
confusion of ‘effete’ with 
‘elite’ was implanted by 
Spiro Agnew. 

looked and solecisms are transmitted 
as swiftly as the common cold. 

Second, because writing, as Jacques 
Barzun put it. “is at the mercy of the 
largest number of amareurs — almost 
the entire population. *’ Errors corn- 
mined to print have a way of taking on 
an air of authority. The upshot is that 
people appropriate the mistakes of oth- 
ers without realizing iL 

Finally, because people get bored 
using the same old woras to say the 
same old things, they are forever look- 
ing for new ways to make an impres- 
sion. This restlessness leads them to 
experiment with a word they have not 
taken the trouble to leant. 

The case of effete is particularly 
complicated because it has been con- 
fused not with one word that sounds 
like it but with two, causing pande- 
monium in the dictionaries. 

Judging from the OED’s citations 
and the definitions in Webster's Third 
( 1961 ), people have been confusing ef- 
fete with effeminate for about 50 years, 
using the former as a euphemism or 

prissy substitute for the latter. Here's an 
example: On a syndicated radio show 
called * 'About Books and Writers,” I 
heard tbe host ask his guest, the author 
of a biography of Margaret Mitchell, 
whether Mitchell’s fianci* was effete. 
Yes, the biographer replied, the fianc£ 
“had many effeminate qualities.” 

The other word people confuse with 
effete is elite. The adjective elite means 
of the first rank, choice, select. The 
members of elite society, the upper 
crust, are sometimes referred to col- 
loquially as snobs. In an interview I 
heard some years ago on National Pub- 
lic Radio's “All Things Considered,” 
Susan Siam berg asked Robert Silvers 
of The New York Review of Books 
whether he thought his publication was 
effete. Silvers acknowledged the Re- 
view was highbrow fare, but said it 
wasn’t snobbish or exclusive and 
didn't deserve any such reputation. 

For millions of Americans, the con- 
fusion of effete with elite was im- 
planted by Richard Nixon’s otherwise 
unmemorable vice president, Spiro Ag- 
new, when in a speech assailing op- 
ponents of the Vietnam War, he uttered 
the phrase ‘ ‘an effete cotps of impudent 
snobs.” Almost overnight, effete snob 
became a catch phrase used by the 
“hawks” to belittle the “doves.” Ef- 
fete now often suggests supercilious- 
ness orself-indu/geace, connotations at 
odds with the traditional meaning: ex- 
hausted, ineffective, worn out. 

So what can we conclude is afoot 
with effete? Has its confluence with 
effeminate and elite boosted or de- 
pleted its vigor? Has its recent equation 
in dictionaries with overrefined, self- 
indulgent. decadent, degenerate, 
pampered and soft made a milquetoast 
of this word? After more than 300 
years, is effete effete? 

Charles Harrington Elster is the au- 
thor. most recently, of “There's a Word 
for It!"- just released in paperback by 
Pocket. William Safire is on vacation'. 


EL SIDs Saint Vicious 

By David Dalton. 223 pages. $21.95. St. 

Reviewed by David Nicholson 

T O the list of inescapable signs that 
my youth is only a fading memory 
f — thinning hair, thickening waist, the 
1 pretty girls who ignore me when 1 smile 
at them on the street — I now add this 
book. Something is (or was) happening 
here, and I don T t know what it is any 
more than I do what goes on in the nosh 

■ What? Oh. excuse me. It’s the mosh 
git. And here I was t h i nkin g bow nice it 
was of the band to provide food. 

" Well. then. Beating a hasty retreat 
from all pretensions to hipness, on to the 
book at hand. 

" This is an impressionistic biography 
of Sid Vicious, once the bass player (to 
piit it charitably) of the Sex Pistols, ‘"the 
archetypal rock group.” The impres- 
sions are those of David Dalton, author 
of books about Jim Morrison, Janis 
Joplin and the Rolling Stones. While 
Dalron gives us some of what we usually 
expect from biographies — names, 

places, events — this is mostly his pun- 
gent and irreverent take on things. 

If Vicious is the heart — I hesitate to 
say brain — of this book, die Sex Pistols 
are its body. They began “as a pro- 
motional gimmick to bring people into a 
boutique to buy tom T-shirts.” That 
boutique was Sex, founded by onetime 
art school student Malcolm McLaren. 

In the beginning was the name, “sur- 
real in a deadpan way.” and a trio of 
musicians who “eventually learned to 
play their* instruments” — drummer 
Paul Cook, guitarist Steve Jones and 
bassist Glen Matlock. What McLaren 
wanted was “ciphers you could dress up 
and point in the right direction” and, had 
he stayed with the core of the band, he 
might have gotten his walking adver- 
tisements. But the mixture became un- 
controllable when John Lydon (Johnny 
Rotten) and John Simon Rhchie, some- 
times called John Simon Beverly but far- 
better known as Sid Vicious (the name 
came from Lydon ’s hamster and a Loo 
Reed song), joined up. 

Their first appearance was May 11, 
1976. For reasons I make no pretense of 
understanding — my guess is thai you 
had to be, oh, 17 at the time — and 

despite their lack of talent, the Sex Pis- 
tols quickly became famous. 

Vicious was ‘ ’weedy, goofy, gullible, 
and psychopathic. Mindlessly violent.” 
He spat on his audience, carved mes- 
sages on his chest with knives and 
broken bottles. At one concert he hit a 
man in the head with his bass. And 
though he seemed never to have met a 
drug he wouldn’t take, his drug of choice 
was heroin. 

In the end, after the Sex Pistols broke 
op, Vicions succumbed to a heroin over- 
dose, but not before knifing his girl- 
friend, Nancy Spungen. who bled to 
death in their Chelsea hotel room. 

I suppose that if you were there, and 
pan of all this, yon might find it intriguing 
or at least in some way comprehensible. L 
don't, but then again, as I’ve said, you 
probably had to be 17 to get iL Be that as 
it may, Dalton does an admirable job of 
trying to explain it, and there is a certain 
hypnotic quality to the stoty that is akin to 
watching someone standing in the path of 
an onrushing train. 

David Nicholson, a Washington 
writer, wrote this for The Washingon 


By Alan Truscott 

M ANY bridge players are 
also golfers and there is 
some overlap of terminology, 
par is a satisfactory score ai 
both games, a term borrowed 
by bridge from golf. And the 
golfers borrow “ace” from 
the bridge players to repre- 
sent a hole in one. But golf 
does not have a Namyats or a 
Yarborough, and bridge does 
not have a Mulligan — a re- 
play after an errant shot on the 
first tee — or a divot 
'* Golfers are sometimes 
driven to the card table by 
unseasonable weather. When 
- V the Florida temperature fell to 
-.-40 degrees F. in the winter of 
r995-96, a foursome at the 
Boca Rio Club in Boca Raton 
decided to sit. On the first 

deal, North-South zoomed in- 
to six diamonds after using 
the Gerber convention to ask 
for aces. 

Sitting East was Andy Ar- 
kin of Manhattan, who now 
cursed the fates that had given 
the A-K of clubs to him and 
not his partner. He doubled 
with two faint hopes: it might 
help his expert partner to find 
a club lead, and the opponents 
might beat a nerv ous retreat to 
six no-trump. 

But neither happened. 
South redoubled, ana made 
12 tricks when West led a 
spade. West no doubt hoped 
that his partner held a spade 
void, and that was not im- 
possible, though unlikely. It 
would have meant that North- 
South held an eight-card 
spade fit and had shown no 
interest in that suiL 

There were two arguments 
in favor of a club lead (hat are 
perhaps will-o-the-wisps. In 
similar auctions when no- 
trump is doubled the double 
suggests a minor-suit lead. 
And since a Lightner double 
of this kind tends to suggest a 
lead of a suit bid by an op- 
ponent, a lead of a suit bid 
artificially, in this case clubs, 
is perhaps the next-best 

After the actual spade lead. 
South should have made a re- 
doubled overtrick by taking 
the spade king, crossing to the 
diamond ace and cashing the 
spade ace. Then ruffing a 
spade and running all the 
trumps squeezes WesL 

When it was all over, Atkin 
asked the question usually 
posed on the first tee: “Can I 
have a Mulligan?" 

Bridge tradition overcame 
golf tradraoo. The answer from 
North-South was hearty laughter 
and a resounding “No." 

* A. 10 7 2 
9 A Q a 3 
O A3 
*Q 9 S 

S J 842 
0 — 


*Q 98 
<7 10 8 5 
$ B 7 6 2 

’ *K 
(7 K7 

0KQ4 10 854 

Neither side was vulnerable. The 

Noth East South West 

j N.T. Pass 4 * Pass 

4 N.T. Pass 6-> Pass 

Pass DbL RdbL Pass 

Pass Pass 

West led the spade Tour. 



i Deshne to 
~ partner 
Fix (in) 

14 Major 

is Pop singer 
^ Bucket! 
iftTVs “Katefi 

iVWord with land 
Score before 15 
m One who raises 

» Famous Wan 
. Street panic 
2a Reverse of 

2« De-squeaked 

23 Travel far and 

27 Make war 

so Modem 

refrigerators do 
it automatically 

33 Prefix with cycle 

34 Actor Davis 

ST Field enclosure 

38 Marksman of 
Swiss legend 

40 Exodus 

42 Mideast's Gulf 
of — 

43 Spud 

43 Skin: Suffix 

47 Yucatan year 

48 Wed-read 

Solution to Puzzle of Aug. 29 

obeieb naa ago 
□eebe naanniagg 

tnaaas eiaa gsg 
□an aaao@ 
BDsaaran3E0S9 aBC3 

« „ saaaa Qogggg 

mm snana sss 

Baa qbb Sanaa 

QQEQQBaa oaagg 
bod san aanofl 


so Kind oi piano 

52 Deftness 

53 Farm, as 
through ecstasy 



37 1 971 Steve 


52 Officer AO-OB 

54 Foumair. drink 

53 Overhang 

66 Mannerism 

67 Lackawanna's 
partner in 

58 Pavarotti piece 
69 Final approval 
to Poetic 
71 Old Fcrds 


1 siow-wuteo 

2 Like some 

3 Bones 

4 Army s mule. 


5 Concerned only 

*.r others 

7 enraged 


as agenda 1 - 

9 Papular oven 

10 Jan. <Vjals 

11 1957 Fats 
Domino hi! 

12 One. to Hans 

13 Astronaut 

SM Narc'sunit 
22 “All the Things 
YOU ’ 

26 Side squared, 
fora square 

27 Montana city 

28 Lend - — 

29 "Voices Cany" 
pop group 

30 Honeybunch 

31 Happing 

32 Voice aoove 

35 Team 

38 Suffix with 


39 Helen's mother, 
.n Greek myth 

41 Charlatan 
44 Italian rice dish 
46 Major League 

* S**- name 

49 HaH a score 
51 Temper, as metal 

53 Trap 
■4 Pee* Btino r 

M Theda of 

38 -you s aid it 
Brother 1 





p ur U*Bytvre°n' c - PW 

£)Netc York Tunes/Edited by Will Shorts. 

59 BuH'B-eye hitter 
so Ardent 

si Yes voles 

S3 Frozen V/asser ' 


U.S. Asks China to Pay 
4% of UN’s Budget 

By Barbara Crosse tie 

New York Times Service 

York — The United States 
has asked China to consider 
paying 4 percent of the United 
Nations’ regular budget to 
help cover tbe gap that will be 
left if Washington succeeds 
in having its assessment re- 
duced to 20 percent from the 
current 25 percent. 

China, the world’s 14th- 
largest trading nation, now 
pays 0.7 percent of the United 
Nations’ budget, which many 
countries believe is far too 
little in view of its economic 
strength. U.S. officials say 
that China has S 126 billion in 
foreign-exchange reserves. 
The Chinese have just con- 
tributed $1 billion toward a 
bailout loan for Thailand. 

Bill Richardson, the U.S. 
representative at the United 
Nations, who has just re- 
turned from a round-the- 
world trip, spoke with 
Chinese officials in Beijing 
about reassessing the pay- 
ments scale. Thar process is 
under way in a General As- 
sembly committee. 

“We were not turned down 
by the Chinese on the scale 
assessments,” Mr. Richard- 
son said. “They said they 
would consider our proposal 
In the past they have rejected 
it, so this is a plus." 

In Washington, Congress 

and the Clinton administra- 
tion have agreed on a package 
of international-affairs ex- 
penditures that would unilat- 
erally reduce U.S. contribu- 
tions to the United Nations to 
20 percent over the next three 
years. In return. Congress 
would agree to pay a large 
part of the U.S. debt to the 
United Nations, which is run- 
ning well over SI billion. 

The congressional plan is 
cow in abeyance because of a 
battle over family-planning 
allocations that some legis- 
lators fear would go to abor- 
tions. But the plan has no le- 
gal standing at the United 
Nations, although it has 
spurred the organization to- 
ward a general reassessment. 

A number of countries, in- 
cluding some in Europe, 
would like to see U.S. finan- 
cial influence reduced. U.S. 
debts created a financial crisis 
in the organization last year. 

Mr. Richardson, who also 
visited Japan, South Korea, 
Russia, France, Georgia and 
several Central Asian nations, 
spoke with various senior of- 
ficials about a U.S. plan to 
add Japan, Germany and 
three developing nations to 
the Security Council, whose 
five permanent members are 
Britain, China. France, Rus- 
sia and the United Stares. 

“We got a lot of support on 
Security Council reform,” 
Mr. Richardson said. 

Rushdie’s Hush-Hush Wedding 

The Associated Press 

NEW YORK — Salman 
Rushdie, the British author 
under an Iranian death threat, 
was married on Long Island, 
New York, in a ceremony at- 
tended by guests sworn to 
secrecy, newspapers .reported 
over the weekend. 

Tbe bride is said to be a 
British -bom publishing edit- 
or who has “gone through 
hell to stand beside Salman.” 
the New York Post said, quot- 
ing sources who requested 

The tabloid Daily Mail in 
London said the twice-di- 
vorced 50-year-old author 
married his girlfriend of three 
years on Thursday in the 
Hamptons and they were now 

on their honeymoon some- 
where in the United States. 

The Mail, which quoted an 
unidentified “publishing as- 
sociate,” did not identify the 
woman or the exact location 
of the ceremony. 

Guests, including Bill 
Buford, literary editor of The 
New Yorker, were sworn to 
secrecy, and none of the 
prominent caterers on Long 
Island's East End would ad- 
mit to handling the affair. 

The author, who has a S2.5 
million price on his head, has 
been spending summers in 
the Hamptons, renting a 
house in the exclusive seaside 
area favored by. celebrities. 
His permanent home is in Bri- 

CEOs, Presidents, Chairmen... you're in 
good company. In fact, in our 1996 Reader 
Survey, you revealed that, in commerce and 
industry, a hefty 82% of you are senior 

It s hardly surprising then that you spend 
a half hour of your valuable time each day 
staving on top of the issues via another heavy' 
hitter. Y>ur IHT. 

For summaries of the surveys from which 
these facts are taken, please call, in Europe, 
James McLeod on (33) 1 41 43 93 81; in Asia, 
Andrew Thomas on (65) 223 6478; in the 
Americas, Richard Lynch on (212) 752 3890. 



and Saturdays 




The IHT's Intermarket regularly features two pages of classified advertising 
for the following categories: 

MONDAY Recruitment, Education, Secretarial, Internet Services. 

WEDNESDAY Business Opportunities, Franchises, Commercial Real Estate, 
Telecommunications, Automotive, Entertainment. 

FRIDAY Holidays, Travel. Residential Real Estate, Dining Out. 

SATURDAY Arts, Friendships, Internationa! Meeting Point Nannies & Domestics. 

A g reat deal hap pens at Tlie Iniemiarkei. 
CaD Sarah Wershof on +44 171 420 0848 

Till: world's nun \i:wskvi*i:k 


PAGE 10 


... _ ^ — — — — 


New and ‘Complex’ Borrowers Spice Up the International Menu 

By Carl GewirU 

Inienunonal Herald Tribu ne 

PARIS — The international capital 
market, .setting a third consecutive re- 
cord level of activity in the second 
quarter of this year, continues to defy 
predictions of imminent demise because 
of increased competition from dereg- 
ulated domestic markets. 

The international market’s resilience, 
said the Bank for International Settle- 
ments in its quarterly report on Inter- 
national Banking and Financial Market 
Developments issued over the weekend, 
is due to “a qualitative change on the 
borrow ing side." 

It also forecast that the move to a 
common currency within Europe would 
result in “a broader playing field" and 
more intense competition between banks 
ro win mandates to arrange new issues. 

Financial liberalization, rather than 

prompting a return of borrowers to do- 
mestic markets, "has encouraged them 
to reduce costs by seeking new pockets 
of investment demand in the- interna- 
tional market.” the report said. It added 
that the global restructuring taking place 
” in the industrial and financial sectors 
has been accompanied by increasingly 
large and complex structures whose 
technical and financial requirements are 
more often than not met more easily in 
the international market-place.” 

The report also Credited "ample glob- 
al liquidity'' and the continuing search 
by investors for higher returns for draw- 
ing new classes of investors and issuers 
ro the international market. 

This Includes new borrowers such as 
Cyprus and Croatia and municipalities 
from the United States and Russia, as 
well as the return of old borrowers such 
as Ecuador and Jamaica, and the in- 
troduction of junk bonds. 

Most Active International Bends 

The 250 mast active international bonds traded 
through the Eurodear system lor the week end- 
ing Aug. 29. Prices supplied by Telekuis. 

Rnk Name Cpn Maturity Price Yield 

Australian Dollar 

15$ Ausiraiiogo* 
20* Australia 

6b 11/15/04 1OZ8910 43600 
12 07 15*9 113.5330 10-5700 

Belgian Franc 

199 Belgium 7 

British Pound 

04/29 99 1 04.7000 6.5900 

101 900 

122 Abbey Natl Ts 
144 Briraln 
1 51 Fannie f.'.ce 
1 66 Fannie ,7lae’.7fl 
227 V.'artd Bank 

A'-i 09/2904 101.2493 4-E100 
6 0510 99 97.3750 6.1600 

7". 12.07 07 TOIZS'.O 7.1600 
6.4300 03/2201 963033 6.4W0 
6'i 06/07-0? 96.S250 6.9700 
7-t 07/30/07 95.7500 73200 

Canadian Dollar 

121 Canada 

7 '.. 

060107 105.6500 


22s Canada 


0901.00 7 04 .57 20 

7 0400 

236 Conoco 

7 ’: 

0101.01 107.0609 


Danish Krone 

7 Denrr.crt 


031 £04 H2.3500 

7. , 20') 

1? Denmark 


1115 07 105.1000 


20 Der.mcrk 


11.1501 710.70 


21 Denmark 


11.-1579 105.S500 


37 Denmark 


1 215.04 106 6700 

6- s t09 

43 uermnrk 


05.1503 112.1300 


45 Denmari 


11.15,00 111.9500 


SO Denmark 


1 MO-24 100Z720 


52 Denmark 


1210 102.9500 


41 Denmc-k 


11, 15 02 1O3J00O 


?0 Denmark 


0215-99 102.3i00 


177 Denmari. 


08-1505 96.1500 




10 0126 9 J. 0500 


197F.SCI f-*eC4 


10 01-24 912533 

6 £20? 

i JO Denmark 


02 IS ?: 1012600 

c *100 

Rnk Name Cpn Maturity Price Yield 

K) Treuhand 6 11.12.03 104.2067 5.7600 

86 Treuhand 6^ 0701 *9 104J100 6.1200 

87 Germany 6’s \201*B 103.8200 6.6200 

88 Treuhand 6'; 03.04,04 105.4100 5.9300 

91 Germany Sb 02/21.01 102.2700 5.1300 

92 Germany 8* a 05/21,01 112.9007 7.4200 

96 Germany 5b 05-2&V9 103.0800 5.5800 

99 Germany 5*i 02.22/99 102.2873 52500 

103 Germany 01. <2 0*8 1072300 64400 

107 Germany 7 1222/97 101.1100 6.9200 

10e Treuhand 5 1 217*8 101.6000 4.9200 

1 1 0 Germany 8b 05,22.00 1 1 1 2800 7.8600 

Tl2Treuhand 7 1125 *9 106.1600 64900 

114 Germany B-s 08/21.00 111'.. 7.6400 

1 16 Germany 7 01.1300 106.3700 64800 

123 Germany 8 : . 07/2000 111.7367 7.6300 

1 25 Germany strip zero 07.04-27 14.0400 6.7900 

131 Treuhand 5 01 .Id*? 101.6400 4.9200 

138 Germany 5-= 08,20*8 102.0808 5.6300 

141 Germany 5 'j 10-20*8 101.7675 5.1600 

U2 Germany Tb.lls zero 10,17 *7 99.6001 2.9100 
1 43 Germany FRN 2.870709 30/04 992200 28900 
U6 Germany & * 05*0 98 1 02.0600 62500 

160 'Germany SP rero 01.0424 17.7100 6.7800 
la? Treuhand o‘- 0729*9 1 04.1 700 6.0000 

1 73 Germany 65 r 0814/98 102.6100 62100 

174 Can Credil Card Sb 081501 102.3885 5.4900 

ISO Germany Tbilis zero 0136*8 98.8550 3.0300 
134 Germany 7 0920 *9 105.7575 6.6200 

208 Germany FPN 2.9500 04.06 80 99.7600 2.9600 

Gross new issues by borrowers in 
emerging markets in the last quarter 
amounted to a record ^ '$41 billion, led by 
issuers from Latin America and Asia. 

The report said that both the record 
volume of issues from emerging market 
borrowers as well as die introduction of 
new types of high-risk structures sug- 
gests that credit risk was less of a con- 
cern to investors than currency consid- 
erations. It also noted a widening 
spectrum of issuing currencies with the 
addition of the Korean won and the 
Taiwan dollar. 

Total second-quarter gross issuance 
amounted to the equivalent of $264.7 
billion. On a net basis, subtracting issues 
that matured or were prepaid, the 
volume of business — including short- 
dated commercial paper — totaled 
$152.1 billion, the second-highest after 
the net $176.3 billion of last year's 
fourth quarter. 

Rnk Name Cpn Maturity Price 

Portuguese Escudo 

117 Bco Invest Imab 02/ 28/07 1012749 

Spanish Peseta 

Overall, with the equivalent of S3.4 
trillion worth of paper outstanding at the 
end of the second quarter, the inter- 
national market ranks as the third-iargest 
in the world, well behind the SI 1.8 tril- 
lion in the United States and the S4.5 
trillion in Japan. Germany is a distant 
fourth with the equivalent of $ 1 .8 trillion 

The dollar’s share of business in the 
second quarter soared to 50 percent, up 
from 42 percent in the previous quarter, 
thanks in part to financial turbulence in 
Asian currency markets and in pan to 
investor c anti on about the planned in- 
troduction of the euro to replace the 
major European currencies in 1999. 
European currencies accounted for only 
29 percent of second-quarter activity, 
the lowest in this decade. 

The transition to the euro, the report 
stated, represents a challenge to die 
world financial industry, ft will require 

harmonization of such market standards 
as the number of day counts, rate-fixing 
periods, business holidays, value date? 
as well as the determination of bench- 
mark interest rates, which will have im- 
portant implications for cash and de- 
rivatives transactions. 

At present, the report noted, there are 
two competing projects for setting short- 
term euro rales, an international project 
in London based on a panel of 16 banks, 
and a Continental project based on 
quotes from banks whose countries 
adopt the euro. 

“Monetary regulations, such as re- 
serve requirements, and taxation within 
the group of countries participating in 
Emu, may cause 'domestic' euro rates to 
differ from international euro rates." as 
is currently the situation for European 

The euro will be a “double-edged 
sword.” the study said, with banks los- 

ing the protection of their traditional 
home currency white potentially gaming 
from a larger, more liquid market. 

The BIS also said in its report -Thar 
“the backlash asainst derivatives th§£ 
followed a series of corporate looses is 

* Grins the example of insurami 
companies forming ventures, with 
vestment banks to offer alternative in- 
surance in the management of a variety 
of corporate risks, the Bib sees the-efr- 
pansion continuing as new users enter, 
the market. 

■The healthv economic environment, 
the hi2h credit quality of counterparties, 
the growing use of collateral and the. 

correspondingly low level ot creqji 
losses all combined to support market 
growth.” which is concentrated in the/ 
custom-tailored over-the-counter- mar- 
ket rather than exchange-traded bu^„ 
ness, the BIS noted. , >l 

Traders Gird for Signs of Inflation 

Bridge AVkj 

NEW YORK — U.S. statistics 
showed such strong growth last week 
that bond market participants are back 

comprehensive August statistics ar- 
rived next week; die National Asso- 
ciation of Purchasing Management re- 
port is due Tuesday, and August 

102 Spain 
129 Spain 

7.900002/28/02 108.9040 72500 
6* 04/15/00 1034680 64200 

Swedish Krona 

11 01/21/99 1 08.0563 10.1800 
10'« 05/05/00 1114070 9.1700 
10(4 05/05/03 119.6670 84700 
9 04/20/09 1182950 7.6100 

13 06/15/01 1244410 104600 
61* 10/2506 99.7050 64200 

221 Germcny 
229 Germany 
235 Germany 
240 Finland FP.N 
245 Italy 

5-‘» 0924.58 102.0700 54100 

6 i 06.25*3 102.0800 6.0000 
o', 0220*8 1014000 6.1700 
b ‘ : 010299 103.4971 62800 

7 t 1220 99 106 4800 6.6900 
3’.! 0916 02 100.7000 3.1700 
5 ; - 0710 07 90.2800 5.7900 

93 Sweden 
135 Sweden 1036 
147 Sweden 
1 68 Sweden 
182 Sweden 
191 Sweden 

(f.S. Dollar 

5 Brazil Cap S.L 41a 04/15/14 922083 44800 

6 Argentina par L 5^ 03/31/23 73.7813 7.4500 

17 Mexico 11 Vs 05/15/26 118.9346 9.6700 

25 Argentina 11 h 07/311-17 117.9645 9.6400 

27 Brazil FRN 01/01/01 992o83 64600 

28 Brazil 10W 05/15/27 99.0000 102300 

32 Argentina FRN 6% 03,29/05 924340 72900 

34 Brazil L FRN 6 T i 0405/06 92.0700 7.d700 

36 Brazil par 2 5L 04/1 ¥24 704625 7,4400 

42 Venezuela par A 6b 03/31/20 B1.6250 82700 

on an inflation watch, saying any sign of payroll data is due Friday, 
inflationary pressures in Hara this week “Something big may be brewing." 
could seriously harm bond prices. a bond trader said of inflation. “If the 
The strong numbers last week in- Chicago data are genuine and it shows 
eluded another increase in the Con- ■ 

ference Board ’s monthly index of con- L.S. CREDIT M ARKE TS 

fidence; the big upward revision in : 

second-quarter gross domestic up in other releases, that could break 
product, which put first-half growth at die tie' ’ between a bearish and a bullish 


51 MexIcopafA 

6'* 12(31/19 804313 7.7600 

Dutch Guilder 

1 Germcny 


07.0407 192.43-5 


2 Germar.v 

6 : 

07.0427 101.7420 


3 Germany 

0517,02 92.8100 

4 5500 

4 Germany 


01 0407 102.4200 


8 Buniesobligaiion 

02.2202 99 0860 


9 Germany 


01/21 02 112.25150 


10 Germany 


06-18,79 ^249C- 

2 5300 

11 Germcny 


04.2606 104.3169 


12 Germany 


072202 H3.1367 


13 Treuhand 

7 : 

090704 1122800 

4 4500 

14 Germany 


0103 05 111.-233 


15 Germany 


05,1205 108JS23 


It Germany 94 


01.04 24 98.4500 

6 3:00 

19 “reuhara 


120202 110.6925 


22 Germany 


010504 102 7550 


23 Germany 


CMO.O! ’14^100 


24 Germany 

6 L : 

10 1 405 104.1433 


26 Germany 


08.2001 101 2:99 

4 *400 

29 Ge-mar.y 


11.20 01 100.0053 


30 Germany 


0319 79 99.3633 


31 Trey, aM 

7 e 

017903 109.6200 


33 Germany 


10/2000 113 0775 


35 Germany 


011500 105.4200 


38 'Germany 


99<1«*E 99.3400 


39 Germany 


0501 01 101 4500 


40 Germany 

e 1 ^ 

O9,2a0J J 11^5703 


44 'Germany 

oa 7200 103.7000 


41 Netherlands 
4J Semenands 

tf Neiiertanas 
75 Netherlands 

34 Netherlands 

5* Netherlands 

54 Netherlands 
•: Netherlands 
•00 Netherlands 
10: Neme-londs 
: 22 Netherlands 
1 50 Netherlands 
*> f- Netherlands 
'£5 Netherlands 
142 Netherlands 
176 Netherlands 
l S3 Netherlands 
203 Netherlands 
207 Netherlands 
212 Netherlands 
21 4 Netherlands 

t i 0715 98 102.1000 6.1200 
5*4 021 5-07 100.8500 5-7000 
0: '5 23 114.0500 64200 
7: 0415.?* 105.6300 7.0900 
WS 02 '<03.4000 54500 
5 : . 0M 5 04 102 9500 5.5900 
7 : 04 15 1 0 114.70 64400 

06 0T-0S 120.1000 7.0800 
S - 0*15 02 114.1700 72300 
? ‘Jr. 15 01 1 13.6000 7.9200 
’ 0s 15. 05 109.7200 6.3300 
07''5.93 102.3000 6 3500 
7 b 0301 05 114.3000 6.7B00 
7 0315.99 104.4000 6.7000 

S- 0215 00 108.9500 74700 
i': 0415 03 106 9500 6.0800 
b 0115 06 103.1500 5-8200 
*=. 02.15 99 1 03.5000 64000 
7 0315 99 1052600 6.6500 

2 : 031501 112'.i 74600 

7 02 1 503 109.3000 6.4000 

8-4 09/1501 114.6000 74400 

47 Germany 3’ a 1220,00 11320 7.3400 

43 Treuhand 7>i 10/01 02 112.2275 6.9100 

45 Treuhand 6i» 07,09/03 107.3600 6.1700 

53 Germany 5 i 11.71,00 1024550 5.0200 

54 Germany e'-: 07,15/03 106.8500 6.0800 

55 Germany 6 09/15,03 1044613 5.7400 

57 Germany 6 02,14*6 102.7400 5.8400 

58 Treuhand oW 04/23*3 106.7600 6.0900 

59 Germany 6 06/20/ 16 974257 6.1500 

60 Germany 5 7 * 05,15.00 104.0400 54500 

62 Germany 7'i 10,21/02 110.0733 64900 

63 Germany 8'j 02/20/01 112.4100 74t00 

64 Treuhand 6*1 06/11,03 108.7220 6.3200 

66 Germany 6V» 05/20*9 103.6900 5.9100 

67 Germany 7b 11,11,04 112.4833 *.6700 

68 Germany 9 01/2201 113.7900 7.9100 

71 Germany 6V. 09/15*9 105.3900 6.4000 

72 Germany bii 04,22,03 108.0160 6.2500 

73 Germany 3w 12/18*8 *>.7400 34100 

74 Treuhand 6b 05/1304 107.9420 O.7500 

77 Germany 6>u 07,1504 108.1250 6.2400 

79 Germany 7“» 12/2002 1094135 64000 

52 s ranee GAT 5 

Ho France OAT 
i Ic France OAT 
’40 France 5 T\A.M. 4 
167 Britain 

l at Frorce OAT f 

153 France OAT 7 

205 France S.T.A.N. 
211 France OAT 9 

21 ’ Italy Ce 4 

233 France B7AN 
23c France OAT 8 

244 Spain 

French Franc 

S'i 04 25 07 97.0900 5.6600 

6 04 25 04 102.7000 5.8400 

7 04 25 0* 107.4000 6.5200 
4-: 07,12 03 57.0900 4.6300 

4 Oi. 28-00 98.2367 4.0700 

? : 0315 02 H 3.0500 74200 
7-: 0425 05 Hi:. 6.7100 
6 031 6-01 103.4600 5.8000 

9’s 04/25-00 110.8800 8-5700 
6': W26.98 101.5000 6.4000 

5 03-16 *9 100.7000 4.9700 

8L 0425 22 119''* 6.9200 

6 013108 99.0000 6.0600 

56 Venezuela FRN 6^ 12080 7 93.3800 72300 

69 Russia 10 06/2607 103.1782 9.6900 

70 Brazil S.L FRN" 0405/12 83.6250 83000 

76 Argentina FRN 6-'i 03/31/23 90.5313 7.5900 
78 Brazil S.ZI FRN 6-i 0405/24 8621 SB 7.9700 
81 Venezuela par B 6>4 03/31,20 81.7500 82600 
83 Bulgaria FRN 6"« O7'2801 77.9375 &5800 
85 Sollle Mae 4b 0802/99 97.1250 4.6300 

97 Me».co par B 6’= 1231,19 80.5313 7.7600 

98 Ecuador FRN 6"<. 02/2805 753900 80700 

104 Brazil S.L FRN 6^ 040 5 0 9 88.0570 70800 
105 Mexico 9-i 0V 1507 106M5J 93300 

109 Canada b'-i 070502 992500 6.1700 

111 Mexico lUi 09/15,15 117'.i 9.7100 

113 Bulgaria 2^ 07/28/12 62.7500 3.5900 

115 Argentina FRN 5.710904,0101 129.1500 4.4200 
12Q Mexico C FRN 632031Z71/19 95.7947 7.1600 
124 Mexico D FRN 6'^« 1208,19 95.1236 7.1600 

127 Holy 6 r i 09/27-23 96.3750 7.1300 

130 Mexico par A 61a 123109 80J313 7.7600 

132 Bulgaria FRN 6” * 07/28.24 79.1875 84500 

134 Peru Pdi 4 03,07/17 67 Jt 77 J.94O0 

1 36 Arg Barries 8*. 050902 101.1536 8.6500 

137 Mexico par B 6b 123109 B0.5313 7.7oOO 

139 Danish Industry 06.1301 100.7500 6.7000 
145Commerztjk Ov 5593801/2901 995800 55200 

148 Mexico A FRN 656721201.19 95.0625 75200 

1 49 Chase Man FRN5.7688OE92102 100.0000 5.7700 

155 Argentina 11 1009,06 113’* 95600 

157 Brazil 8 7 t 17.0501 103.0000 8.6200 

159 Abbey Noll TS 61, 06/3000 99.8750 62600 

163Mydfa FRN S** 090907 925211 7.0900 

164 Tayoln Motor 6b 072202 98.6756 65300 

165 Argentina 84) 122003 995606 85200 

170TMCC 7 06-1107 1015166 6.9100 

171 Brazil S.L FRN 0415/12 835850 85700 

172 Philippines Fix 8i« 1007,16 1005500 8.7300 

1 75 Russ,a 9 'j 1 1.27.01 1025500 9.0500 

179 Ecuador par 3b 0228,25 505903 6.9300 

181 Bco Com Ext. 7>; 020204 93.3750 7.7600 

IBS Italy FRN 5593805/1202 99.B800 55000 
106 World Bonk 6 0a2200 99.6250 6.0200 

1B8 Boyer Vereinsbk 6h 05,2200 1012500 e.6700 

189 Britain FRN 55313100401 100.0358 55300 
190BtSecs Lon FRN5.78] 3 080600 99.7800 5.7900 
192 Standard Chart 6 J20L* 0 86.7900 6.9100 

124 Mexico D FRN 
127 Italy 

130 Mexico par A 
132 Bulgaria FRN 
1 34 Peru Pdi 

136 Arg Bonles 

137 Mexico pars 

4.3 percent, and the unexpected in- 
crease in the index of the Purchasing 
Management Association of Chicago. 

The data undercut gains in rhe price of 
the benchmark 30-year Treasury' bond, 
although it still finished the week up 15/ 
32 ai 96 30/32. lowering the yield to 
6.61 percent from 6.66 percent a week 

“The pace of growth is making 
people more nervous about inflationary 
pressures.” said Michael Moran, econ- 
omist at Daiwa Securities America. 

view of the markets. 

Arthur Micheleai, chief investment 
strategist at Bailard Bieh] and Kaiser in 
San Francisco, is in the bearish camp. 

“I would really focus on the above- 
trend growth in* the L'.S.." he said. 
“We’ve been getting a steady stream 
of positive economic news for some 
time now." 

readings on some purchasing managers 
surveys are signs that inflationary pres- ^ 
sure* may be on the rise, he said. 

The improvement in inflation over 
the last year reflected in large pari the m 
dollar’s "strength and its impact on im- 
port prices. Mr. Micheletti added. 

Phil Laverson of Prudential Secu- .. 
rities forecast a strong employment re- * 
port next week. Considering the 
healthy data last week, he said, such a 
report might be enough to send the 30- _ 
vear Treasurv yield back above the . 
6.70 percent level. Once that level is 
broken, he said, technicians see the 
next support at 6.86 percent. . - 

Mr. Laverson said he expected a * 
125.000 gain in August payrolls, ex- : 
eluding 1 75.000 jobs created as a result ' 
of the strike against United Parcel Ser-.j 

6.61 percent from 6.66 percent a week of positive economic news for some vice of .America Inc., given the rel- j 
ago. time now.” arively low level of jobless claims., 

“The pace of growth is making “We think rates will probably be That would mean a strike-adjusted gain ^ ^ ... 
people more nervous about inflationary going up.” Mr. Micheletti added. “The of 300.000. follow ing the strong ifK , ; 
pressures.” said Michael Moran, econ- economy’s growing at a rapid pace, crease of 31 6,000 in July. . - 

omist at Daiwa Securities America. above trend. "and the Fed will likely be Mr. Laverson forecast a rise in the- 
Worries over inflation got an extra raising rates at some point between consumer price index for August due to ., 
tw eak from a big increase" in the price now and the end of the year." strong increases in apparel and tuitions - 

component of the Chicago purchasers’ He said the Federal Reserve Board as well as the effect of the UPS strike.;^ - 
report, which followed a significant probably was awaiting evidence of in- Economic reports w ill start looking », 
rise in that price measure in July. flationary pressures or else inflationary friendlier once the effects of the LPS : 

Analysts said the market's jitters expectations, like a mcne in the bond strike filter out of the data, he added;. 
meant that participants would be market, in order to lighten. The rate of "If we get through September. “tey . 

warching even more closely as the first growth and the pickup in the price said, "everything's going to be fine.” . 


as well as the effect of the UPS strike. 2 j; 

Economic reports w ill start looking «, 
friendlier once rhe effects of the UPS ; 
strike filter out of the data, he added;. 

"If we get through September. “ he;4 
said, "everything’s going to be fine.” . 

ru.- rra- •- ■ 
ser-e . : 

EMU Won’t Hurt Nations’ Credit, Bankers Say 

BLvnibtrc AV»> j 

JACKSON HOLE. Wyoming — The 
advent of European economic and mon- 
etary union need not raise the credit risk 
of individual nations. British and French 
central bankers have said. 

“1 don’t see exactly why sovereign 

we'll see." Under the Maastricht treaty , 
countries must meet a series of economic 
targets this year to be among the first 
round of nations joining currency union 
on Jan. 1. 1999. 

Financial stability is the topic of this 
vear’s Kansas Cirv Fed conference. 

risk would be changed with moneiarv which draws participants from Europe 

•• _ t» f r— * r-» ! ‘ n : ... .11 .. . v:—_i J 

152 France BTAN 4>- 04 1 2*9 101.3300 4.6900 
J 5J France B. TAN. ib 03-1202 1003900 4.7400 

Italian Lira 

16) Italy bb 020102 IOOlOSOO <k2500 

223 Italy e’-. 0701*9 1035500 7.9800 

237 Italy 6 02/1500 99.7900 6.0100 

241 Sccr2 -jlp FRN 6.885008,15.02 100.1721 6.8700 

Japanese Yen 

133ConlmpBk FRN 0.4531 08/2200 99.9700 0.4500 
176 World Bank 03/2102 11 7'i 4.4800 

1®3 NTT 2k* 07,25/07 101.6250 2.4600 

I95Exlnie(. Japan 2'» 07/2805 106.1250 2.7100 

21 9 Morgan Sian E 1. 280002/27*8 993731 1^900 

220 Merrill Lynch 2 11/2102 99.8089 2.0000 

247 Argentina 4.400005,2704 99.8750 4.4100 

194 Poland Inter 

200 British Telecom 

201 Firs! NatBkChic 

202 Canada 
204 IMG Bank 
213 Ecuador FRN 
215 Panama FRN 

4 10/27/14 85.0000 4.7100 

7 05/2307 1015374 6.9100 

7 050800 1013750 6.9100 

6* 08/28/06 1025009 65700 
6b 08707/00 993000 6.1600 
6*S» 02*28/25 78.4618 85200 
4 07/17/16 87.3750 45800 

21 6 Mexico FRN 7.054606/2702 100.1500 7JM00 
222 Peru From Load 314 0307/17 615240 5.3000 

224 Pakmd FRN 64V 10/27/24 973125 7.0900 

225 East Japan Roil 7V, 1 0/1106 1 02.1 250 7.1 000 

union,” the Bank of France governor. 
Jean-CIaude Trichet. told central 
bankers and economists Saturday at the 
Federal Reserve Bank of Kansas City’s 
annual symposium. 

The Bank of England governor. Eddie 
George, expressed a similar belief. 
“We’ll have to wait and see whether it 
does produce differences in sovereign 
credit risk,” he said. “I suspect noL but 

and the Pacific Rim as well as North and 
South .America. 

On achieving stability. Mr. Trichet 
said the best w av for officials to achieve 
tb3t goal was to keep inflation at bay. 
“The major preventative action for fi- 
nancial siabdity is price stability." he 

Mr. Trichet appears to be following 
his own advice in France. The Bank of 

France's aim is to keep the annual in- 
flation rate at less than 2 percent, and it is 
well on target. 

In the 12 months that ended July* 31. 
French consumer prices rose-1 percent, 
matching June’s annual rate of in- 
crease. - ■ • 

Other institutions and industries also 
can contribute to overall stability. Mr. 
Trichet added. "Financial stability 
means stability of financial institutions 
and stability of markets." he said. 

Bui that does noi mean central 
bankers should target specific market 
levels, he said. “I don't see who is really 
likely to be the judge of the appropriate 
market prices in line with ftindam'eht- 
als." Mr. Trichet said. 




245 Finland 

246 Tricorn S.A. 

249 Merrill Lynch 

250 Mexico 

228 Canada 616 05/3000 1010000 6^4400 

23OVaHenfa0 Tsy zero 0805/98 94.0309 6.7700 

231 Kellogg 6^ 080401 995000 6.1600 

232 Canada FRN 5"j 02/10/99 995200 55100 

234 Brffish Gas zero 11,04/21 17 7.6000 

239 Britain 7V. 120902 1035750 6.9800 

242 Venezuela FRN 6'** 03/31/20 9051 25 75400 

243 Korea Dev Bank 7V. 05/1506 97.1575 7.4600 

24S Finland 5*i 02/2706 95.3750 4.1600 

246TrtCom SA. m% 090104 102.2500 11.1200 

249 Merrill Lynch 6Vi 08/2101 99.7500 65200 

250 Mexico 9 A, 020601 106.0000 92000 

New International Bond Issues 

Compiled by Charlotte Sector 


“ e£ c-.T. 

- • ’ % ’-v. . 



The Week Ahead: World Economic Calendar, Sept. 1-5 

A schedule ot iha wee* S econcmv 3rd hrancal confuted tor me inieraswndl Hernia Tribune by Bloomberg Business News. 


Expected Manila: Asian Development Bank 
This Week seminar on "Emerging Asia: 

Changes and Challenges." Monday 
and Tuesday. 

Sept. 1 


Paris: Report by Michel Delebarre. 
former secretary ot state tor the civil 
sen/ice and reform of the state ad- 
ministration. on consultations with 
France Telecom and its employees 
on the future of the company. 
Voorburg, Netherlands: Consumer 
price index for August. 

Bangkok: Consumer price index for London: Money supply data for Au« 

Sept. 2 


Sydney: Resen/e Bank’s index of 
commodity prices for August. 
Earnings scheduled: First Pacific, 
QBE insurance, MacMahon Hold- 

Sydney: Reserve Bank’s monlhty 
board meeting. 

Earnings scheduled: Southcorp 
Holdings, HIH Winterthur Insurance, 
Mayne Nickless. 

Wednesday Canberra: Bureau of Agriculture & 

Sept 3 


Sept. 4 

Sept 5 

Resource Economics to issue crop 

Sydney: Economic growth data for 
second quarter. 

Kuala Lumpur. Standard & Poor's 
to hold briefing on credit outlook lor 
Southeast Asian companies. 
Sydney: Retail trade data for July 
Earnings scheduled: BRL Hardy. 

Manila: Inflation data for August. 
Earnings expected: China Re- 
source Beijing Land. Goodman 
Fielder. Goodwill Investment Hold- 


Rome: Hourly wage data lor July. 
Stockholm: New-car registrations 
and household-spending data for 

Earnings scheduled: Optima. 

Dublin: Government borrowing da- 
ta for January-August period. 
Stockholm: Riksbank sets securi- 
ties repurchase rate. 

Earnings scheduled: Lenzing. Roy- 
af Gist-Brocades. Sulzer. Ciba Spe- 
cialty Chemicals. CRH. 

Budapest: Unemployment data for 

Copenhagen: Current-account and 
trade data for June. 


New York: JP Morgan Securities 
conference on "Global High Yield." 
Thursday and Friday. 

Saskatoon, Saskatchewan: Asia- 
Pacific Economic Cooperation fo- 
rum conference. Tuesday. 

Caracas: Inflation data for August. 
Lima: Consumer and producer 
price data for August 
Santiago: Inflation data for August 
and industrial production data for 

Buenos Aires: Inflation and con- 
struction-cost data for August. 
Mexico City: Foreign reserves data. 
Tempe, Arizona: National Associ- 
ation of Purchasing Management to 
issue purchasing managers’ index 
for August. 

Washington; IMF board to decide 
on release of S700 million install- 
ment of three-year loan to Russia. 
Washington: Construction spend- 
ing data for July. 

Brasilia: Electronic auction of cof- 
fee stockpiles by Trade Ministry. 

Floating Rate Notes 

Daiwa PB 

Lehman Brothers Holding 

Sven ska Handelsbanken 
Bacob Overseas 


Bank Nederiondse 

Deutsche”* usgleichshank 
Japan Highway Public 
Lnndesbank Sachsen 
World Bank 
Kansai Inn A irport ~ 

Lloyd's Bank 

World Bonk 

Haindl Finance 

LB Schieswig-Holslein 

World Bank 

Swedish Export Bank 

Equity- Linked 

Mitsui Mining and Smelting 

perpt. 1.05 100.00 — 

1998 libor 100.079 — 

2000 0.05 1 00.00 =_ 

2001 0.1 5 _ 100.03 ~ 

2000 61.8 100.881 99.82 

2002 6U 99.688 99.39 

2007 6’j 99559 9959 

2000 Sb 99.3<>75 98.16 
"2001 61 i 101.369 99.96 

2007 71 H 99.322 99.43 

perpt. 8 99.453 91.89 

2002 Jb 90.06 

2007 101.945 99.23 

2004 5'i 100.998 98.82 

2000 7 99T95 99.05 

Ml 4.15 100.00 

2001 0.25 100.00 — 

Inrerest will be 1 .05 over ijnnrrm Ubor until 3002. when issue is callable at por. thereon er 255 
over. Fees 1 . A o :Nomuia into f 

Over 3-monih Libor, floncollable Fungible chT. MitsandinQ issue, raising total amount to UK 
million. Fees 035 s » 'Lehman Brothers lull • 

Inlerest will be 050 over 3-tnanm Ubor until 2002. thereafter 2 00 m or Fees (Credit • 
Suisse First Bosfon 1 

interest w ill b e IheT-m onlh Libor rjoncoHoble. Fees O.Of-,. (iatamun Bromers tnrt.i 
Over J-in-jnlh Ulwr Noncolloble. F«es0.l0 : :. .CommerrbanM : 

Under 3-qiomb Libor. Uoneanablc. Fees 0.1 25-« ..Dresflner BanK., 

Reoffered at 9o *03. NoiKofiobfU Fees I » f , 1 ABN-AMPO Hoore Goveft.) " _ 

NoiKOlloble. F ees 0Z5 ' : ■ Commvrzuonf. 1 ' 

Noncoltabic. F ws 0 32y De roninw iions S 10.QM. (Inlemglfonal Sank of Japan frrt-j.j ^ 

Reoffered 01 98 ,'us NoiKoHabfe ~ Fess n/ : 'Banque Nofipngf ae Pori^.i T 

ReoHereq at oo NsmoMkFms I - lABN-AMRO Hoare GovefTi ~ 1 r 

Woncoifobie. FeesOJ2 ^ : . jeZoefe Wedd.i ~ 

,n :0:3 m «wi:«rlnrerest a I.0-. overfhe S-vr. Gilt Fees Ot, 2T». iBarrloys de 

Semiannually Wmicmtobie. F^..^ (Nomura Inti.) ' ^ 

Noncolfoble. Fee-, not ovo.tah ie .Bo»erfs.:he Veteinsbonki ' ” 

Reaffen.ta ol 99 0«8 Nontolioble. F WJ 2 4 s *. 'Banque Natiorwlede Pariii 

NontoHob te. FuesoTT-~ bank I 

NwoiW Redemption ot motanN M be in dollars.' Fees l -= - rp^ ran i 

Jr- i-' 'r,i-z '.i - ■ 

— Tw 

; r • . 

■ ' •ntrooL.’f ’ • . 

— ‘tpJs.-e: . 

it J -ate o-’ : i 

' pronji-is;. .V , 

— pO-'c~ 

* fcf. 

inters ' . - 

h<?2uc : ; 

— force, •’ : - 

_ find' ’_. r " : 

J_ a 

"T nL,!, eo; ; ; vr. 


^ vi, aucVb7-:/..:' 

,!| 5* u»jl: . 
r. ■ 

•ulS 1 ?'/ - 
'^7 1 :;.’ c 

3SS Rates 

CY Ra: 

Callable n par In 2r»i 
available. (Roncil Fleming.' 

an e, peered S' .. Terms to be fined on Sept. 3. Fees not ~ 

Last Week's Markets 

Stock Indexes Money Rates 

Frankfurt Bundesbank policy coun- Sao Paulo: Inflation data for Au- 

di to meet on interest rates. 

Oslo: Economic growth data for sec- 
ond quarter. 

Copenhagen: Unemployment data 
for July 

Paris: Economic growth data tor sec- 
ond quarter. 

Earnings scheduled: Delhaize, 
Vitec Group. Boehler-Uddehoim. 
Wienerberger Baustoffindustrie. 
Companhia de Seguros Imperio. 


Ottawa: Building permits data and 
help-wanted index for August. 
Washington: Factory orders for Ju- 
ly and initial state unemployment 
compensation insurance claims, 

Washington: Unemployment data 
for August. 

Caracas: International reserves and 
money supply data. 

Washington: Federal Reserve to is- 
sue weekly report on commercial 
and industrial loans. 

United States 
QJ Indus. 

DJ Tran*. 




Nasdaq Cp 






T5E Indus. 





Hong Kang 
Hang Seng 
vi and 

Aug. 29 Aug. 22 % Ch’oe 
7J22J2 1.887.91 -337 

331.77 23135 *018 

2J/CL17 1937.03 — U8 

868.94 896.93 — 3.12 

89938 973Si -261 

1A57J3 1,086.94 - 2.72 
470>ffl 478.93 - 1.76 

1.58 726 l.SQ&Jfi -a 71 

18.229-42 18650.17 —2J6 

451750 4.H1.1D —1.71 

660850 6.709.W - 151 

2.770 49 2.904^3 —461 

i«6.03 <086.01 -4 M 

1413555 IS. d» 75 — 8J9 

Eurobond Yields 

Ujmed Stottt 
Prtmc rxafe 
rederui funds roh? 

Call money 
3-manffi infe0an! > 

bank boce rale 
Call roanev 
3-montli Interbank 

IntervenbOn role 
Call money 
3-raonth InicibaiA 

Call money 
3-monlh interbanV 

U S. a. kTii'l I*rrrr 
U.S S rndiri :4>nii 
U.5. $. short runii 
Pounds itenmg 
French francs 
I Mon lire 
Danish fron-.-i 
Snedish kiumr 
ECUs, Ion, 1 lertn 
LLUS. nidi 11 lomi 

Cnn S 
Aus S 

« *8 r>_5> 

v57 65 1 

7 « f,.J8 
4W 6 '34 

& Nans 

9 71 4.18 SJI 50* 
IS 7$ 7.75 7.W 
-97 J.85 £.<T> 

9.46 6.43 7.79 6 59 
S.42 S_S6 593 S3* 
5-f» 5 » Sol iSj 

?]£ jo; 6^1 5 

Pi S4i ^-76 
ifv »■«■« 

6 1 7 6.42 m , 1 | , 

•AI 7M 8 JV ,4 
1 s ® L64 2l5 ijn 

Saunre Luwnbe uv evywge 

Weekly Sales 

Primary Martel 


Slraighls 1 76 252.0 4 538.1 

J.on*eil. 870 189.1 MO 140.8 

FRN5 587.4 763. J 471.0 7lfr 

ECP 9.50S 6 7.3283 iai05.7 7.3026 

Total 111975 8.5318 1UU.I &74SX 

Secondary Martel .. 6 

53515 Eurvctew — 

s Kws 5 NMS 

jfraighls 24,887 .7 1A1333 81059.8 I08I8E 
Convert. ?(A& 1,000.6 3.123 7 2,724*1 

FRNs 29.923A 5.3J75 3979SJ i985j 

tS«. US I6J 2, -2l 7 0 22A113 

Total 72,214.9 33.28821 Ja.265.7 S1.37« 

Sajrce. Eunxtfrar. Cede/ Bank . , 

long Seng 14135 JS 1S.JZ9 75 -839 

Gtito dag. 29 r . 

^C,p KUI 9K.S.1 -W „, !0 22 

World tnde* from Margm Stanley Capite< Inn 

Libor Rates 

1 ... . 

• , ’ r 

u.s. 5 s=r 7T 

Doulv;hu mail' v _ , ' 

Pound sterling 7,, y 

Soure,. s . LW*ds Bank, Real?- 

7-rewlh 6-cuwlh 

5", 51. „ 

Fro^h h on . ; 


1-rmnTh 3-recnth fr-tuuuit^ 
3; « 3*'i# 3 : n 

4'-.* Jl, 4" 0 - 



*ial \ 

■a ?. "v 

”*•4 if 



PAGE 11 

Si its*. - 

— ) 

Berlin Fair: 
Showcase of 

The Interaction of TV 
And Computers Grows 

Bloomberg News 

BERLIN — The only- thing that is 
oiitdated at the IFA consumer electron- 
ics fair is the event's nam e 
~ The event, which runs through Sept. 7. 

.has grown into more than just a launching 
pad for the newest consumer 
during its 73-year history. These days it is 
also a showcase for the latest innovations 
m the tdecomnnmications, computer, 
and media industries. 

Visitors to this year’s fair can see 
everything from new mobile phone 
models to televisions that let users surf 
the World Wide Web and laser pro- 


jecdon systems that enable people to 
receive sharp television pictures on just 
about any surface. 

The fair’s evolution reflects what 
many industry experts see as proof of 
the growing interaction between the dif- 
ferent industries and the complementary 
nature of the technologies they employ. 
It also underscores the growing role of 
'‘multimedia” — the combined use of 
images, sound, text and computer data 

“What we’re seeing now is that 
broadcasters are talking to the computer 
industry and vice versa, whereas this 
was not happening five years ago,” said 
Jens Bodenkamp, director of corporate 
business development of Intel Carp. 

Even as developments in digital tech- 
nology make it narder to distinguish 
between computers, televisions, and 
telephones, there remains considerable 
derate about the implications of such 
innovations for television manufactur- 
ers and other traditional electronics 
businesses. Though computers can now 
serve as televisions with the aid of a 
'‘TV card” that enables them to receive 
television signals, few are sounding the 
death knell for die conventional tele- 
vision set just yeL 

‘‘At the moment it’s a battle for the 
eyeballs because there is another me- 
dium, namely the Internet, dial’s es- 


• -v-Tr^X' V 

1 1 Andwa* Ahvnn/^rsd Frana-Prac 

Visitors peering at a bank of video monitors at the IFA electronics fair. 

tablishing itself in the market,” Mr. 
Bodenkamp said. “But there’s a long 
way to go before we actually see con- 

For Schneider Rundfunkwerke AG. a 
German maker of television sets, the 
advent of new technologies is an op- 
portunity to create new products that 
serve needs of increasingly sophisti- 
cated consumers, rather than a win-or- 
lose battle. 

“These technologies make it pos- 
sible to develop new solutions.” said 
Schneider’s chief executive, Rainer 
Liebich- The debate over whether the 
computer or the television will prevail 
“asks the wrong question,” he said. 

Both Intel’s Mr. Bodenkamp and 
Schneider’s Mr. Liebich say they expect 
the links currently being developed be- 
tween the two industries will drive fu- 
ture television innovations. 

Microsoft, the world’s largest per- 

sonal computer software maker, for ex- 
ample, announced in April it planned to 
buy WebTV Networks Inc., a Palo Alto, 
California-based service that users link 
up to the Internet through a television. 
Intel, the world's largest computer chip- 
maker, has worked with television 
broadcasters in the United States and 
Europe to enable them to supplement 
their programs with information from 
the Internet and transmit it to viewers. 

These links are a recognition that the 
television is an easier way to spark the 
interest of more entertainment-focused 
users of multimedia, Mr. Liebich said. 
Homes of the future are likely to have 
both a personal computer and a tele- 
vision because [he computer continues 
to be preferred for personal business, 
Mr. Liebich said. 

• Recent technology articles: 


Jakarta Targets Rupiah Speculation 

Curbs on Forward Trades Aim to Brake Plunge of Currency 

CcmfOfd tn Oar Surf Fmn ftrs 

JAKARTA — Indonesia announced 
restrictions in foreign exchange trading 
in the forward marker Sunday in a bid to 
limit speculative dollar buying. 

Sudradjad Djiwandono, the governor 
of the central bank, said the government 
had decided to limit domestic banks' 
forward foreign exchange selling 
against the rupiah to nonresident, or for- 
eign, customers, with a $5 million max- 
imum transaction amount per customer 
andjposition outstanding per h ank 

The new rules took effect as of Fri- 

Forward exchange transactions are 
purchases or sales of foreign currencies 
at an exchange rate at the time of the deal 
but with payment and delivery sched- 
uled for a specified future date. 

The move follows the plunge of the 
rupiah since it was floated on Aug. 14 
and the sharp tightening of monetary 
policy the following week. 

Currency dealers said the move ef- 
fectively curbed the sources of funds for 
foreigners to buy dollars. 

“This is what we have been waiting 
for,” one Japanese bank dealer said, 
adding that the move followed basically 
what had been done in Malaysia. Thai- 
land and Singapore. 

Southeast Asian currencies have 
come under fierce speculative attacks in 
recent weeks that have knocked them 
down sharply and forced many gov- 

ernments to impose forward limits. 

Dealers had mixed opinions, 
however, about the likelihood that the 
measures would stabilize the rupiah. 

The chief treasurer of a local bank 
noted that other countries in the region 
had imposed similar rules but failed to 
stop their currencies from sliding to new 

“I think there could be follow- 
through rulings from the central bank to 
further dose the gap of rupiah funds for 
offshore parties,” the treasurer said, 
adding that offshore investors could still 
tap domestic funds through Asian de- 
posits in Singapore. 

One dealer in Singapore said, 
however, that while the move might not 
stop the weakening of the rupiah, it 
might slow its decline, as has happened 
with other currencies. 

The rupiah plunged to mi all-time low 
Friday, as the dollar rose to 3,070 rupiah 
in Jakarta before receding to finish at 
2,935. up from 2,927 on Thursday. The 
rupiah fell more than 1 1 percent in Au- 
gust and is down almost 30 percent since 
early this year. 

Mr. Djiwandono said local banks that 
had exceeded the limit would not be 
allowed further forward transactions un- 
til outstanding amounts were reduced to 
below the permitted level. 

Most banks bold forward positions 
well in excess of the $5 milli on Limit, and 
dealers said it would take time to unwind 

the positions. 

“This move effectively kills the for- 
ward market,” one saicL 

Mr. Djiwandono said exceptions 
would be given only for swap trans- 
actions for investment, including port- 
folios, and export-import needs. 

Forward selling, he said, includes all 
transactions taking more than two days 
in which foreign currencies are sold 
against the rupiah. 

He added that “nonresident custom- 
ers” included both bank and nonbank 

“Exceptions for in vestment and ex- 
port-import must be proved with sup- 
porting documents that are permanently 
stored with the domestic banks,” Mr. 
Djiwandono said. 

The Japanese bank dealer called the 
restriction an appropriate move since the 
government had tried hard with market- 
friendly instruments to contain rupiah 
volatility while saving the country's valu- 
able foreign exchange reserves. 

The central bank effectively floated the 
rupiah on Aug. 19 after removing its 
intervention band. 

While the Japanese bank dealer ex- 
pected forward rates to fall and the rupi- 
ah to recover following die move, the 
chief treasurer at the local bank predicted 
that stability might only be temporary. 

“I think more effective rules might 
have to follow to turn off the tap for 
offshore,’ ' he said. (Reuters, AFP ) 

IHT Begins Printing in Israel, Its 14th Site 

International Herald Tribune 

PARIS — The International Herald 
Tribune began printing in Israel for the 
first time Sunday night in a new joint 
venture with the Israeli daily news- 
paper Ha’aretz. 

The paper includes the entire edition 
of the Herald Tribune plus a daily, 
four-page section in English from 
Ha’aretz providing local coverage of 
the day’s news in Israel, including 
business and economics, plus, com- 
mentary and entertainment listings. 

Richard McCIean, publisher and 
chief executive of the Herald Tribune, 
joined Ha’aretz executives in Tel Aviv 
to launch the new joint venture. 

A subscription campaign started two 
weeks ago throughout Israel has 
already brought results that signifi- 
cantly exceed the partners’ projections. 
Mr. McCIean said. 

“The excellent response we’ve had 
reinforces our conviction that there is a 
big growth opportunity for the Herald 
Tribune in Israel,” he added. “We’re 
certain that we have the right partner 
and a product that can make an impact 
in the market here.” 

The Ha’aretz supplement will be ed- 
ited by David Landau, senior editor of 
the Ha’aretz editorial board and a 
former managing editor of the Jeru- 
salem Post. 

Every Friday, in addition to the four 
pages of local news, the English-lan- 
guage supplement produced by 
Ha’aretz will include a 24- page en- 
tertainment magazine providing full 
television listings for the week, movie 
reviews and listings, community ac- 
tivities and articles on art. theater, lit- 
erature. food, restaurants, Voice of 
Music programming and lifestyle and 
nightlife features. 

The Herald Tribune, based in Paris, 
is jointly owned by The New York 
Times and The Washington Post. Tel 
Aviv becomes the paper’s 14th print- 
ing site worldwide. The last previous 
site added was in Malaysia in March. 

Prague Notebook 

Floats and Floods: Czech Woes Persist 


International Herald Tribune 

Three months ago, the Czech Repub- 
lic government nearly collapsed when 
the koruna lost over 12 percent in; one 
day, forcing the National Bank to raise 
interest rates and float the currency. 

The koruna’s troubles spotlighted the 
failure of the Czech government to tackle 

head-on key economic reforms J and 
i massive demand for consumer imports 
that had left the currency overvalued. 

> The result was a government shake- 
v m, budget cats and a weakening of the 
economy. Prime Minister Vaclav Klaus 
introduced a package of reforms and 
replaced the finance, trade and industry 
mini s tats. His coalition government won 
a vote of confidence by one ballot and 
promised action on a litany of economic 
woes: massive current account arid trade 
deficits, a growing budget deficit, high 
interest rates, falling productivity^ 
bloated and overpaid industrial work- 
force, inefficient and indebted industry, 
and inefficient pension and health-care 

Nearly three months later, almost 
none of that has happened- Floods that 
ravaged a fourth of the country in July , 
and caused $2 billion to $3 billion in • 

►: damage are partly to blame for the delay. 

■ -7 particularly troubling are plans to clean 
up the capital markets. Economists warn 
that unless Czech and foreign investors 
can feel safe investing in Czech stocks, 
the country will not attract the money it 
• needs for reform. . ‘ 

“I’ve seen no progress on makmg the 
markets more transparent,” said Jack 
Schrantz. strategist at Raiffeisen Zen- 

tralbanken in London. “I’ve given up 
hope that they arc going to do any- 

Debate on the 1998 budget begins in 
mid-September, and opposition Social 
Democrats say they may call a new vote 
of confidence. To win, Mr. Klaus will 
have to cut the deficit and satisfy the 
subsidy-hungry fanners who support his 
fractious coalition partners, the Chris- 
tian Democratic Union, who have hinted 
they could cross the floor if they do not 
get what they want. 

Collapse Strands Vacationers 

Several thousand Czech tourists found 
themselves stranded in resorts in Spain 
and Turkey late last month when threeof 
the country’s largest travel agencies col- 
lapsed. The agencies blamed the collapse 
ofthe koruna, which had wiped out thin 
margins in a highly competitive business. 
Police said some travel agency owners 
had simply walked off with the cash. 

Meanwhile, Czech vacationers raced 
the waiting rooms of airports and Turk- 
ish police arrested Czech tourists who 
found that tour operators had not paid the 
hotel bills. When the Turkish owner of 
the Prog travel agency landed at 
Prague’s main airport to sort out his 
difficulties with Czech Airlines, on 
whose flights he had booked his va- 
cationers, he was arrested. 

When Prog’s flights finally left four 
days later. Czech Airlines generously 
offered to honor tickets on its own flights 
— for an extra fee. Meanwhile, as the 

Foreign Ministry was arranging special 
flights to rescue stranded travelers, the 
government rejected a special tax on 
package tours to create an insurance 

Bank Hits Troubling Times 

Investicni a Postovni Banka AS, the 
third-largest Czech bank, is a troubled 
case. The bank reported 18.6 percent 
nonperforming loans at the end of 1996. 
“Since then a lot has happened,” says 
Miroslav Nosal, an analyst at Patria Fi- 
nance in Prague. “The quality of loans at 
all banks will worsen by the end of the 
year. Becanse of the flood and the eco- 
nomic slowdown, a lot of customers will 
stop paying interest and principal,” Mr. 
NosaJ said. 

Many of the troubled loans were made 
to companies that are largely controlled 
by the bank’s own investment funds. 
IPB’s top managers spent several weeks 
in' jail mis summer on charges (still 
pending) finked to a suspicious land sale, 
and the investment fond arm, the conn- 
try’s largest, was fined recently for vi- 
olating securities laws and was ordered 
to cut many of its ties with the bank. The 
funds have also been sued for allegedly 
diverting profits from asset sales to IPB j 
rather than to holders of the fund. 

A-Czech official said .last month that 
IPB was so overstretched it would col- , 
lapse if it was not sold within two ! 
months. Eight Czech banks collapsed | 

See CZECH, Page 13 ! 


Aug. 29 

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MV * WBy 

Pound Won’t Be Strong 
For Long, Banker Says 


JACKSON HOLE, Wyoming — The recent strength of the 
pound is not likely to be sustained in the tong run, Eddie George, 
the governor of the Bank of England, said on Sunday. 

“We’ve got an exchange rate that is clearly stronger than ; 
W e think could be sustained in the longer tom,” Mr. George 
raid a panel of top economists gathered here for a three-day 
symposium sponsored by the Federal Reserve Bank of Kansas I 

Mr. George said the strength of the pound in international 
foreign exchange markets was due to factors “beyond our 
control.” He added, “I think you cannot find the perfect 
solution to that, so you actually have to hold on until that 

situation resolves itself.” , _ . 

“But I think, in doing that, you have to focus on tiie mam 
nhiective which is maintaining long-term price stability and 

sustainability and growth of the economy,” he added. 

The conference chose the topic of m ai n tai n ing financial 
crabilitv to a global economy as its core theme tins year. 

The strength of the pound “creates tension between the 
exiemal and internal interests of the economy,” Mr. George 

the past year — ta” Aug. 22 , 1996 to Aog. 22. 1997- 
.h^noundbi risen 195 P erceat a # unst . a trade-weighted 
currencies and 20.2 percent against the Deutsche 
basket or (Reuters, Bloomberg) 






MA1SON&OBJET - The International Home Decoration, Giftware and Tableware Exhibition 5-9 September 97 

CUIR 97 - The International Leather Fair, from the Raw Material to the Finished Product 6-8 September 97 

Mi DEC - International Shoe Fashion - Paris 7-9 September 97 

EQUIP’HOTEL - International Show for Hotels. Restaurants. Cafes and Catering Industries 18-23 September 97 

POLL. LTTE C - 1 3* International Exhibition of Environmental Equipment Technology 

anti Services for Industry 30 September - 3 October 97 

INDIGO - Internation al Exhibition of Creation and Design for Fashion and Decoration 4-7 October 97 

MOD’AMONT ^fashion Supplies and Trimming Trade Fair • 4-7 October 97 

PREMIERE VISION - LE SALON - The World’s Premia- Fabric Show © 4-7 October 97 

EQUIP* AUTO - 13*- International Exhibition of NewTedmologas of Original Equipment Spare Parts. 

Accessories and Garage Equipment >5 - 20 October 97 

B ATI MAT - International Building Exhibition 3-8 November 97 

INTERCLIMA - International Heating, Refrigerating and Air-Conditioning Exhibition 3-8 NOVEMBER 97 

INTERSF* 3CTION - The InterTiadonal Exhibition for Volume Retail Fashion >8-21 November 97 

NOUVEAU REGARD - The Exhibition for Fabric Quick Response 20-21 November 97 

EUROPLAS T - 10* International Exhibition for Plastics, Rubber and Composite Materials 24 - 28 November 97 

WIDEST - The International Subcontracting Exhibition 24 - 28 November 97 

MAISON&OBJET - The International Home Decoration. Giftware and Tableware Exhibition 9-13 January 98 

CONFORTEC INTERNATIONAL - Trade Show for Household Appliances 75 - 28 January 98 

JOUET - International Toy Fair 29 jANUARr - Z FcSRUAftY 98 

EXPOBOIS - International Exhibition ofWoodwoHting Machinery Manufacturers and Timber Industries 20 - 24 February 98 

PREMIERE VISION - LE SALON - The World’s Premier fabric Show © 6 - 9 Mauch 98 

INDIGO - International Exhibition of Creation and Design for fashion and Decoration 6 ~ 9 March 98 

MOD’AMONT - Fashion Supplies and Trimming Trade fair 6-9 MARCH 98 

M1DEC - International Shoe Fashion - Paris 8 - I Q March 98 

SITl. - InramarionaJWeek of Transport and Logistics 17-20 March 98 

LOGIBOX - Solutions for Logistics Facilities 17-20 March 98 

30 September - 3 October 97 

4-7 October 97 

4-7 October 97 

4-7 October 97 

f5 - 20 October 97 
3-8 November 97 
3 - 8 November 97 
18-21 November 97 
20-21 November 97 
24 - 28 November 97 

24 - 28 November 97 
9-13 January 98 

25 - 28 January 98 

March 98 
March 98 
Mahch 98 
March 98 
March 98 
March 98 





PARIS-NORD Villepinte :TeL- 33(0)148 £330 X- Fax: 33(0)1 436333 70 

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PAGE 12 



Din * " 

o* \ 



1 in 5 Urban Chinese Owns Shaies 

dhS G £’S' WhiJe deposiis remain * ft, 
atMksnr 9“*“' °. ne in five reponed invests in 

§35 Sn? Tb 111(1 0r Sr m i e ! ght had “ insurai1 « polii'^he 
'AsfZlt Weekly reported on Sunday 

&«** horizon Research Group of 1.5 j re- 
InH Be,J ' ng - Shanghai, southern Guangzhou, extern 
^amen and southwestern Chongqing showed 69.5 percnt of 
fffi saved fheir money in bank deposits. 

' oerceot w^rf*^ erCent - said tbey had invested in bonds.20 8 
percent were in equities and 12.3 percent had insurance 

Bezeq Posts Loss on Reorganization 

^ JERUSALEM (Bloomberg) — Bezeq Ltd. reponed un- 

SiL S fT d T^ ler ioss -553.1 million shekels <SG7 3 
, on) . after the Israeli phone company took chorees yr a 

S3— P lan that caih ^ laying off 20 percent o the 

r ° S l 2 Pfr ent - ro 219 bi,Uon shekels, aeainsithe 
^econd quarter of last year, when the state-owned comnnv 
reined a net profit of 1 68.3 million shekels. 

^25*9 reor Saniza lion-linked charges of J.OI bilion 

JjJSlfi. S Uarter ' , The Iolai cost of eliminating the jbs. 

be u conc,ud e d by mid- 1999, could reach ! 4 
billion shekels, the company said last month. 

Kazaks Attack Moscow Oil Tender 

Kazakstan (Reuters) — The Kazak Forcgn 
flints try has cniicized Russian plans r o hold a tender forhe 
exploration ot huge oil and gas riches on the pan of he 
£ a ?E!? n ^ ea ®belf that it considers its own. 

. The Foreign Ministry is authorized to express its str-ne 
disagreement with die holding of the tender, to declare he 
inadmissibility of unilateral actions, uncoordinated nth 
Kazakstan, held on its territoiy and the necessity to reconsiier 
^decision taken.* the ministry* said in a fax. 

’ Th e nunistry said it had information that Russia's Narral 
Resources Ministry had announced a tender for the righ to 
explore mineral resources in the Caspian Sea. "From.he 
location of the blocks put up in the tender, it is clear that seme 
of them are in Kazakstan’s sector of the Caspian Sea.” it sid. 

Joblessness to Rise, German Say? 

- BONN ( Reuters.) — German unemployment could soaro5 
minion mis winter, a newspaper quoted Ursula Engeen- 
Kefer, vice chairman of the Federation of German tade 
unions as saying. 

. Ms. Engelen-Kefer told the Neue Osnabruecker Zeiang 
newspaper unemployment could come close io the “mage 5 
million mark.” particularly if cold weather lasted a long cue. 

- There were 4.37 million people out of work in Germaiv in- 
June. The newspaper Saturday quoted Ms. Engelen-Kefe as 
saying io political measures could reverse rising joblessrjss. 

For the Record i 

• Dresdner Bank AG is interestediin taking a 20 percent sake 

in Donaldson, Lufkin & Jenrette+the newspaper Frankfirter 
Allgecieine Zeimng reported, saying the German bank wts in 
talks with the French insurance cpmpany Axa-JjAP, wiich 
owns a stake in the U.S. investment bank through its Amercan 
unit Equitable Co. j 

• France is weighing plans to sell part of the capital of Air 
France soon, the newspaper Le Monde reponed. 

• Albania's president. Rexhepj Meidani. has appouted 

Shke jqim Cani. a Socialist as the few governor of the ceitral 
bank I 

• Swiss Bank Corp. said it had fired five foreign exchange 
depatment employees last week Jifter accusing them of :m- 
bezziing about 5 million francs (58.4 million). 

• De Beers Consolidated Mines Ltd. is prospecting for 

dianonds in China and may apply to set up a joint ventu* if 
?ese-ves are found, the China Daily Business Weekly ie- 
porzd. - Reuters. Bloomberg 


PAGE 13 

u.s . Preparing 
A Hot Sell-Off 

Up to $ 1.8 Billion Is Expected 
For Nuclear-Processing Unit 

By Peter Passell 

Xl » l-wt 7lWI 1 I It , 

NEW YORK — There is 
big money in nuclear energy. 
While most nuclear-power 
plants in America may be 
economic albatrosses." the 
little-know n. aovemment- 
owned enterprise that sup- 
plies the bulk of their urani- 
um fuel is highly profitable. 

So profitable" that Wash- 
ington has incorporated into 
the budget the billions it ex- 
pects to bank when the U.S. 
Enrichment Corp., which has 
operated with considerable 
autonomy since 1993. is sold 
to private investors early next 
year. It will be the largest 
divestiture of a federal pro- 
duction operation ever at- 
tempted. But the raid from 
here to there is tortuous. 

Transferring USEC to 
private hands" raises rhomv 

issues ranging from the wish 
to preserve a domestic source 
of uranium fuel and the need 
to secure global stockpiles of 
bomb-grade uranium from 
nuclear terrorists. “The sale 
is not just about maximizing 
value," said a senior admin- 
istration official, speaking on 
condition of anonymity. 

A half-dozen big U.S. 
companies, including Lock- 
heed-Martin Corp.. Westing- 
house Electric Corp.. General 
Atomics. Allied Signal Inc. 
and Babcock &. Wilcox, are 
reportedly pondering bids. 
But the catch they are eyeing 
has so many question marks 
— a sagging market for the 
produciT "outmoded technol- 
ogy. and reliance on cheap 
electricity that will probably 
be cut off in eight xears — 
that the estimated value is 
low compared with its cur- 
rent earning*. 

Splitting United Sb 
The Atom — 

Patiucan t 

Five consortiums 
produce all of .......... 

the enriched n' t: 7./ 


commercial nuclear ft- -~- 
power plants. .■ 1 tMTED- 

Here is .- 7 states ■ 

each group s . . 

share of worldwide 
production and the \ 
location of each ' s '- ; 

enrichment plant. 

Source: Nudear Energy Institute 

U.S. Enrichment, which 
operates plants in Paducah. 
Kentucky, and Portsmouth. 
Ohio, for enriching uranium 
to reactor-grade strength, re- 
poned earnings of $250 mil- 
lion on revenues of $1,578 
billion in the fiscal year ended 
June 30. That was down from 
$304 million in 1996. but 
largely because it spent more 
on research in 1997. J. P. 
Morgan, the corporation’s fi- 
nancial adviser, estimates that 
the projected profits translate 
into a marker value of $1.5 
billion to $1.8 billion. 

If acquisition offers from 
bidders deemed worthy fall 
short of that range, the Treas- 
ury Department and USEC's 

United States Enrichment Urenco, 12 % 

Corporatfon. 4 OTb Atmelo. the Netherlands 

Paducah Ky — , Portsmouth, capenriurst. Britain ,-Gronai 
L I Germa 

Minatom. 20 % 

Yekaterinburg Krasnoyarsk 

• IS , 

V . w 



26% —zr~r 



1^.-4 • ; j* . 

Lyon. France 

■France. Spam, 
Belgium. Italy 


*• x.*»- t 

\a— M ’■ 


v. .. vT^- 

White House-appointed 
board will have to decide 
whether to accept rhe most 
attractive offer, or to allow 
the corporation to sell shares 
through a public offering. 

Lockheed-Manin. whose 
subsidiary operates USEC’s 
plants, has formed an alliance 
with Allied Signal and Gen- 
eral Atomics. Bill Corcoran, 
an Allied Signal spokesman, 
confirmed the consortium's 
strong interest in USEC. 

The most unusual player is 
Pleiades Group, a consorti- 
um headed by former Com- 
merce Secretary Robert 
Mosbacher and advised by 
former Secretary' of State 
James Baker 3d. Its chief ex- 

ecutive, .Alexander Sbuster- 
ovich. a Russian- American, 
acknowledges a close work- 
ing relationship with Viktor 
Mikhailov, head of the Rus- 
sian Atomic Energy Min- 
istry. or Minatom. 

\VhiJe U.S. officials will 
not comment publicly on 
Pleiades's suitability to own 
USEC. there is opposition 
from the national security es- 
tablishment. Pleiades points 
out that Washington has con- 
siderable experience in pro- 
tecting sensitive technology 
where military contractors 
work with foreign corpora- 
tions. Moreover. USEC is 
not alone in the business of 
separating U-235 from non- 



/: Nuclear 

? Fuel, 2% 

tv Japan 

fissionable isotopes of urani- 
um. Two European consor- 
tiums. Eurodif. owned by the 
governments of France, 
Spain. Belgium and Italy, 
and Urenco. owned by Bri- 
tain. Holland and Germany. 
were created in the 1970s to 
reduce Europe’s dependence 
on what was then an Amer- 
ican monopoly in the non- 
Communist world. 

And Minatom has become 
a major exporter. Since all 
three competitors' operations 
were built long after USEC's 
plants were completed in the 
1950s. they largely employ 
centrifuges to separate the 
uranium isotopes — a major 
cost advantage. 

Dark Side of Strong Dollar: When It Falls, Beware the Pain 

By Carl Gewinz 

Intt i tuitifiui Hi i.thl In frit Hi 

PARIS — The dollar’s recovery 
from its 1995 record lows is credited 
for doing much good — taming in- 
flation in the United States by re- 
ducing import costs as well as raising 
growth in Japan and Europe by mak- 
ing their exports more competitive. 

But this benign overview is hid- 
ing some dark spots, analysts warn. 

In Tokvo. Richard ’ Koo ui 

Nomura Research Institute cautions 
that conditions in the United States 
disturbingly resemble those that in- 
flated the" financial bubble in Japan 
in the late 1980s. 

In London. Avinash Persaud at 
J. P. Morgan worries that just as the 
dollar's sharp recovery over the last 
two years has contributed mightily 
to restraining increases in" U.S. 
wholesale and retail prices, so a de- 
cline in the currency — fed by 
slower growth in the United States 

and faster growth in Europe and 
Japan — could add to inflation ar a 
rime when other fundamentals 
would call for easing monetary con- 

For Mr. Koo. “a strong currency, 
a relatively easy monetary policy, 
aggressive" bankers, and skyrocket- 
ing asset — equity and real estate — 
prices coinciding' with a stable con- 
sumer price index are all common to 
Japan eight years ago and the United 
States todav." 

He firets that U.S. bankers, who 
until late lasr year were cautious 
owing to concern over rising de- 
linquency rates and deteriorating 
household balance sheets, now ap- 
pear to have transformed them- 
selves into aggressive lenders. 

“This suggests that a virtuous 
cycle is starting, where confident 
bankers finance more investment 
projects, which in turn creates jobs 
and income, which in turn boosts 
asset prices, which in turn makes 

bankers even more confident," he 
said. “This is exactly how the 
bubble economy started in Japan." 

The error in Japan, he concludes, 
“was not so much in the continu- 
ation of low interest rates as in the 
monetary authorities' inability’ to 
contain bankers’ enthusiasm." 

Mr. Persaud’s concern is that talk 
of a new paradigm — the ability to 
sustain a high rate of growth without 
igniting inflation — “may be more 
perception than reality.” 

CZECH: Reform Package Makes Little Impact on Economic Woes 

Continued from Page 11 

last year, and it* IPB went, it would 
further strain the Czech banking sector. 
A difficult sell, perhaps, but the gov- 
ernment holds a 36 percent stake in PB 
that it wanted to unload. 

What ro do? The government has now 
agreed to sell the stake to Nomura In- 
temarionaL an arm of Nomura Securities 
Co., which has been having troubles of its 
own in Japan. The question being asked 
is. uhv Nomura? The Netherlands' ING 

Bank NV. which has well-established re- 
tail and investment banking operations in 
Hungary and Poland, was also bidding. 

Senior officials at Nomura in Japan 
were jailed for making payoffs to or- 
ganized crime. Nomura's president Ju- 
nichc Ujiie. said last month that “in some 
senior parts of the company the sense of 
right and wrong was a bit warped." 

"Nor is ii dear how much Nomura will 
pay. Two separate audits this year will 
set the final sale price. Nomura has 
agreed to pay at least 2 billion koruny 

($59 million) and to raise PB's capital 
by 6 billion koruny. 

Analysis say Nomura probably has its 
eye on EPB *s stakes in industry through its 
funds and loans. Before the sale was 
approved. PB had sold stakes of two of its 
key industrial holdings to Nomura-con- 
trolled firms, including a 29 percent share 
of the ceramics plant Chlumcansky Ker- 
amicke Zavody and stakes in the brewers 
Plzensky Prazdroj and Radegast. 

Peter S. Green 

Have you been to 


DoiTl miss it. A lot ha p pens there. 


See ~ 

Wednesday's lntermarket 

• for BusimM Opportunities. 
Fnnrhiftc*. Commercial Real Eeute. 
’HcconununicatBjrvi. Auiomothc 
and Enicrtammcnu 
Hadterliie contact Sarah W*ninf 
on -*-*» IT 1 420 0326 , 
or fax +1 1 171 420 0338 

ii ri M 33a 

Am ouncements 


i u i mui r> Dm* ' I 


efy of '.wr rewspaper rie static d v<w 
^subsripion ot aDoul otdemg a subsenp- 
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. . ! , 

’ra IlKKiEaiHMCf 

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HONG KONG CO. SS2H Anruai cast 
5550 SP Ud 701. 5 Cuecffis Rfl. C. 
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Real Estate 
for Sale 

Pans an d Suburbs 

HE ST LOUIS wsnsr senswu SO sq.m. 
50 sqm km 1 bsilrocm. 4th flootSl 
sun Tei 33 OH 43266866 & 0680310322 

Real Estate 
for Rent 

Paris Area Furnished 

15th. near 7W over .pnfca 1 sweib Bv- 
ino ♦ 2 btfraoms terrace. FFii MO ♦ i 
Pan - i bedroom FF7i00. aar quel 
equpped. redone- Tel *33(0iGO36i5126 

7th BAC, Sept 4 to Jan 3 rooms, sunny 
«ew. calm. CNN. an amenn-es Pnce 
FFE0H. Owner .33 i(H1 4222068 

PORT ROYAL BO. loi'eN. qutffl. 3 be*. 

2 tabs garden '/ten ad aroenbes up to 
5 moms F15500 -33<£i]1 47074631. 


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ideal a carnrn w laioi stuio-5 bedrooms 
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PACE 16 


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"liw'ir w a fn'ciui in il;e fmiintK. ' 

ecause Nature 
s not always 
% know best. 




From modest beginnings in die American Midwest in 1985, Gateway 2000 is today a Fortune 300 company 
with over 10,000 employees worldwide and 1996 revenues in excess of S5 billion. In 1993. Gateway 2000 
came across the ocean to Ireland, setting up their headquarters for Europe, the Middle East and Africa in 
Dublin. Gateway has repeated its phenomenal success in the USA and is now a leader in the direct marketing 
computer industry this side of the pond os well. 

As the EMEA operations continue to expand, an opportunity has now arisen for a legal counsel. Working close!} 
with the EMEA Group Counsel, you will provide a broad range of business orientated commercial legaj advice to 
management and staff throughout the region. This is a hands-on, last-paced practice with abundant opportunities. 

You should have at least 5 years US. European or international commercial and other relevant experience gained in 
a leading international law firm or multinational company. Gateway 2000 operates an extremely congenial and 
informal working environment. If you feel you have the necessary legal skills and commercial approach to your work 
required for this rype of position, please contact our advising consultant. Naveen Tuli, who is handling chis 
assignment on an exclusive basis. 


International Legal Recruitment 

Craven House, 121 Kmgswav. London WC2B 6PA Tel +44 (0)171 831 3270, Fax +44 (0)171 831 4429 





◄ > 

r. m.iil: LuirciiccWLiiircnccMiiioiis. demon. co.uU. 

...» The European Agency 

fa 1 the EvafadFim of MeAidnal Products 
^ % (EMEA/ m London 

is organising a selection procedure ro recruit staff in the field of 


The EMEA is an Agency of the European Communities u it responsible 
for co-ordinating scientific resources ir. the EU Member Sw*e i for the 
evaluation and supervision of new medicinal products for both human 
and veterinary use. 

Since sfartinE its activities in 1995 the EMEA has shown itself to be 
an effective new instrument to initiate the new European 
Regulator System in the Pharmaceutical area. You can find more 
information on the work of the EMEA on our Web sue at 
httpo/wv.v. .eudra.arg>'emea .him!. 

Information technology is of critical imoo-tance to support the work 
performed in different locations 'Offices of Member States 
Commission in Brussels and EMEA in London'. Seie'ai shared 
applications are operational using a ded : ca*ed Intranet. The EMEA is 
currently implementing a ranee of tT j-orecw includr* a N7-t 
Office 9“ platform. ' 

To further emote its IT support the EMEA ’S cjr*cr>ttv looknc for 
candidates for the following positions. 

• Officer in charge of Information Technology (grade A5) 

• Principal Administrator (senior IT project manager) (grade AS) 

• Administrator (IT project manager) (grade AT) 

• Principal Administrator (senior IT system administrator/ manager) 
(grade A3) 

• Administrator (IT trainer) (grade A7> 

• Administrator (work flow & document management) (grade A7/A5) 

A detailed description of »he potions :« ouTvshed *r :r.e Official 
Journal '01/ of the European Commu’-ries no C2>.»3 A of 2v \jS-us! 
1997. with .a summary oi the quj-.'ricatiors anc proiess>onai 
experience required * the same imormation is also available on the 

European Communities. 

To obtain a copy oi ihe QJ containing the application r'onm please wore 
to the Head oi Personnel at the address Iwltiw. The imormation mav 
also be requested bv fav on i ^44 !7i. B-J i or bv e-mail 
•frances.nuttallf emea.eudra or z- 

The European Aaene. for the Evaluation o; Medicinal Products 
7 TVesiterry- Cm. 5 Cana- 
London E.--HB. Lh 

Application forms, duly completed and sieved mu?; reach 'he above 
address postmarked not laierthan id 0.::cr«?r 

The EMEA applies a policy oi equal epponunit** rbr men and ;uvn err. 

. Translator - France 
French to English 

With its world-wide organisation, Valeo 
m f! L^ll is able oiler ambitious candidates the 
opportunity to develop their career in 
an international environment. 

The Corporate Communications Department requires 
a French to English Translator in part-time 
position, for the company's head office in Paris. 

You will assist the person in charge of translations at 
Group level in the translation into English of all types 
of documents (financial, technical) published by the 
Corporate Communications Department for both 
internal and external use : memos, press releases, 
annual reports, brochures, ... 

You should either have American as your Mother 
tongue or have lived and worked in the US. You are 
bicultural and have solid experience in translation. 
Proficient German would be an advantage. 

.This part-time position (possibly full-unve at a later 
date) will enable you to progress within a flexible, 
multi-skilled team. 

Candidates should send a full CV (with photo) and 
hand-written covering letter to Michelle ROSSI at 
VALEO - 43 rue Bayen - 75017 PARIS. 


i.fc- tes.rr.i. r,ar.-;'a::cr:^ ar..- 



BAXTER INTER hiATlON At INC. is o glob* 
based in Chicago, with operations in 12 
the world. BAXTER, with 5 6,3 bp- 
£0,000 employees, focuses on «xp^[ in 

technology in Jfce health core sector. BAXTER the wo - 
the msdical/sirrgicd sector and is c tnj 
thonks to its global end innovative answer! 
is an important part of BAXTER and accoij 
soles with 1 ) ,000 empbyees.The Card 
BAXTER is currently looking for a j 

Manager in 

77m position J 

• Reports directly to the Corporate AuaC 
States, responsible for developing and iman 
and managing and developing Corporateu 

• Acts as a business partner by maintainiJo 

key operational and business people at cmh 
levels. Individual will work on a varir 
financial audit assignments and special pi 
value to business units. Protects consist of *ie 
systems, financial and operational fit) 
management data, business processes as pi 
■ Continues ongoing relationships with lal 
The Requrramenti j 

• Eight plus years progressive expanc 
audit/consulting firm and/or intemafidrl ii 

• Ability to organize, motivate, assess a j da 
handle multiple projects, meet deadline, g 
skills, excellent negtxjotion and intwpeonal 

• Able to work independently. - I 

• Willing to travel 70% primarily in Eupe. 

• Fluent in English, ability to speak per 
Italian, French, Spanish or German is »ngl 

• Loaded in a city easily accessible to otficflii 

Please send application (letter. CV] usintAf 
BAXTER SA - jean-Noel Thiotfier - hjan 
6 , avenue Louis Pasteur - BP 56 ■ 7331 ram 
Please note that Baxter subsidiaries wjncf 
about (his position or forward a pp l i cotii. 

Life R e q u Ir 



The Organisation for Economic Co-operation and Development 
.OECDI’ an international organisation based b Paris, is seeking 


fa'iAM. ft 

knowledge of English and good knowledge ci French. High-speed 
accurate typing pG words rsr mbu:e‘ and -xzii word 
crocessbg svsrems requirei 

Denmark. Finland, France, Germany. Greece, Hnnesry. Iceland 
Ireland, Itit, bran Korea Luxembcurg Mexbc, Netherlands. 
New Zealand. Norway Pcnuga: Spain Sweden. |w:=e:land 
T urkev. United EineJoh. United Starts' wti rmralan: tzss :o: 

Human 'Resource Management, OECD 
2. rue An dr e-Pascal, ' r 5T'5 PARIS CEDEX 16 
marked -HT/SEC SEPT. 9’" 

An International commodity trading company- 
based in Paris , seeks 




every Monday 

For more infomatioru 
please contact 
in Paris: 

TeLs (33-1) 41 43 93 91 
Fax: (33-1) 41 43 93 70 


Di>rim-ui>hcd lady. 2S-I0. fully hiJingiAi). French ■ English. io 
take charge ol Paris office of small company. She will he 
responsible for expansion, profit ami will have also to hire, 
train, and supervise French personnel according to 
company procedures. 

The candidate must be a sell-tinner, demanding, well 
organized, determined with strong personality and 
possessing all the required competences. 

Must be at case in negotiations with top level French 
corporations. Pleasant personality. Anglo- Saxon or Swiss 
candidate preferred. .W0/500 FF p.a. 

.W lutCVtn Enx.iSH. IHT l>2521 Settilv C*l ex France. 




Petiecilj bilingual in English iprelsrably mother tongue English.. 
Your profile; 25.‘?5 >ears. good comparer knew lid*? ir.cri pro- 
cessing, spread sheet, database-, and t> nine 4rii« 

Your assignment: at lice administration, -sere: or. ar.d assistant of 
4 associates. Organising uatels. administration o: client database. 
This function requires autonomy, initiatives, sense c: oraanisation 
and good presentation 

Phase send your document (letter Cl. Photo I ro Mme Bern. 

14 rue 1 1e Marignan “ SOUS Paris. 

Executives Available 


23 yean old seeks nea Jafienges. 
Danonfflasd arrpetetve a sst-ip c: 

irrtrM safe nanort in Eaqpe. 
Presently m trarge ol irismanoral IT 
daintier v 'wqjarh r. Frarce 
intemaiiooaRy ediraL?! ana 
rebUe rlusrt m Entsai, Ftendt 
Spartan iatnar. k' vxi as tw 
Scandnavan languages For hli resume 
please contact Fax tttiOliU 54 82 id 

SALES & MARKETING Professional 

English 6vmg in Denmark seeking a 
cnaiengmg position and moua^.Europe 
based extensive imeroationai business 
.Jevefcpmefit expwtwe Irirtmaw wtfnq 
up tistribulor netwxVs 8 expense m Eu 
itjpe ' Scandnava F.jr turthev detais 
please cartad Bon 399. IHT F2 Lcnq 
toe Londori WC2E 3JH 

^■nanvc w*h e*oermes gamed n van- 
ais weU replied enerpns?s in Ihe hett 
at process, cost ais/ysis proiect pfen- 
ning i marten analysis seete new chal- 
lenge. German. Iiuencv m English & 
French Contact Patrick Sditemn*. Ftoj. 
toeuzsir 1 77815 SueHL GerTany Tel. 
or -i9-78S2-7d28 


■ Take 1 to 3 courses in 
1 1 different disciplines 

■ Courses available for credit 
or audit 

■ Register by mail or walk-in 
registration Sept. 1 2, 1 997 
from ] 5h00 to 1 7h00 
3 1 , av Bosquet 

75007 PARIS THE 

For information: OF PARIS 

Tel.: 0140 62 07 20 " dfpaniwnf itv 1 u pirwuilwni nmnimnif : 




F R E N C H 

• T>:-p qualih courses tor adults 
in B-:r.T33u« 

• Teenage Summer Programs 

- ir> fersera-; C- Biamc 

| ( lC:ur>-3 Ckmc>:w 
■ fts t ff ' ■ Borcteair. ■ Fiiin;-; 

E-mrfil blv-HiMEint* :: 

Tel iJJ'S V# jiliOT®Fa*iJX.5-aSI Toll 


Gerrar. ra-cral ;! uax Er.j'iin-r’jnr' 

K ", c'fsr m Ccr;r:-'-ii 

GAAP'SKfliTic. Aj2pt,; Cr»2r-si'cr 
M a w 3Xc&. i-Zii'Ji rCTOTT: jr i r- 
imi tas^s ar£ cr texX a»g»ssKSs. 
=a- -59-41 23- -c 49-2 i-3*.nrarv» 
S-sna eirnf'.'e'SeimsnwifKSLdje 

Executive Positions Available 

m«xal aqufjiwra .j supph/ 
joup a the fiett « A^HRi^COPY 
5 UF'DLOGY is SMCrtmg tor a 
European Sales & Marketing Manager 
texd x its fteadquartK v Amstenbm 

H you speak and wnle Engfcti aril 
German i« EnglsT arid Dutdil flusntly. 
ant if you have e'jwn&rw r leaftig an 
uvemaitotd safe orgarfeanon atiere 
rechracal produci lunwiedge is reqLnred. 
iend yotf cumcufum me. safety history, 
phisc, and ftanAvmten apotatum 
nncbding an eumple ol a relevant 
markewg success you have had) to 

FMS Italia S.R.L Piazza Borgo Pita 
402 H612S Genova KaJy 
Tai: +39 1059 It 70 fas +39 1058 7339 

tnennens are scheduled tor 
Atgust 27 or 28 n AffsiHdam j 
Sepemoe to y 11 m Gaww. 


r the real estate nee* of 
nenuttona) firms seeks 


Englsh rruiber tongue. 
Wonimg capers ecsertial 
Send cv pncio and cover letter m 
IHT, Box 380. 181 Ave Charie* 
de GauOa. 92S21 Nauily Cedra 





All levels 

47. rue des Ecdes. 

75005 Paris 

’a! -33 ’I j l Jf i£2 
c a« i2J 1 ) 4v -a 29- 
tojffnsf ‘ 
ha vVi-rfie 

Far (202} 87-0192 


tor leering Parts ■ ased PR agenc/. 
Strong meresi and aperience in evanl 
and t or sports pres relations Engtfsf) 
wrong skills and Fmch woddna papers. 
Write Box 381, BT, 181 Ave Charles 
de GauSa. 9253 Nau% Cetfax 

Safe Represerrtave needed for U S. 
trade pittcanons i w. Euopean leniw- [ 
ty. Travel comas and advertising 1 
experience a rrus Excetani cotnnifeaon, 
strurture. rep fim OK Fa* or E-ma# 
feume ASAP to MET 415-788-1905. • 
74117 imenheu 
will be heid h Lndon Sept 15 & 16 / 


spend eitpcrt fu 
China and Sodteast 

r0s ^ fts£ a es . w s nwR 

Uwju.. ., 


mg r Southeast Asa 

abo haw msrtef dWWvnW .«#)•' 

enca U.S citttensftp r«pa«l 

Qualified cantkdaws dnM nod 
rtsume, cover letter and ( saiay 
tiwwyte ', '• ! :- 

Oiractor, Human RoourcH t - 
American Soytwao AwocMon 
U 1 K Woodcnei Encothra Mw 

suw iooT 

Sl Louh, MO 631414009 USA . . 
FAX; pVf}£7S*m ■ , 

team leader in posts m 
HemdUialy educated, haxtoie 
able Fluent h Ganran. BwK 
presently studying teflan. Tet: 
8275037 (answwmg-niadwwl'Or 
aSa M. Jednak. 00420-2-62748© 

Project Itanagers rrth a 
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PAGE 17 




way ff (toes bus^^ 


mmket and new workplace 
■ Practices are making the 

cma ^ lno ^competHiw 
^dsaify. A new member of 
< ^ c °f South Hone has 
undertaken the 
dons^ikdfon of its motor 
inAistr ies, South Koremt 
Products using existing 
tectm °kfgyarehou8^HM 
names aroumf tte w«mw; 
and current Investment hi 

Innovative technology. I 

At a Glance 

Globalization and Far-Reaching Reforms 

—South Korea is undertaking a major overbad of the economy to adapt to the global marketplace. 

ouih Korea’s rise from war casualty to economc giant 
has been nothing short of miraculous. With precious 

_ a uiajui {Jiayci ivty ltn.ll- 

-oology-mtensive industries such as automobiles, ele* ironies 
and shipbuilding. With a GNP of close to $500billionjr is the 
second largest economy in Asia after Japan and ranksl 1th in 
the world. 

“ 1 believe our GNP will surpass that of Canada in lie next 
two years, which, in numbers at least, makes us G7.” savs 

latter part of this year, analysts fear the worst is nor yet over. 
‘"In the short term. I think we will see more bankruptcies, 
ssed selling and asset deflation ii 
we have worked off the overcaj 
director of Dongbang Peregrine 
The good news is that there seems to be widespread 
recognition of the need for structural reforms to the South 
Korean economy. 

"We have been successful in the past,” says Deputy Prime 
Minister Kang Kyong Shik. “It just takes time for people to 
accept that we now need to make a complete change of 

expatriates living 
in South Korea.’ 

Park Ung Suh, president of the Samsung Economic Research direction to be successful in the future." 

Institute “Pvmi if nmvrtll clnnw C - I J r» ..L J .L. _■ 

Institute. “Even if growth slows to around 6 percent, I don't 
"See Why by the year 2010, our GNP should not be as ligh as 
_that ofthe United Kingdom or Italy.” 

The challenges ahead 

Rosy forecasts notwithstanding, there are serious thorn; in the 
side for South Korea to remove first The country is fac.-d with 
a major restructuring of the econqmy if it is to adap : to the 
newly global marketplace. As a [condition for joinng the 
Organization for Economic Cooperation and Development 
-iOECD). Seoul has had to agree jto open many of is pre- 
viously closed industries to internatfonal participation, and this 
has accelerated the need for South [Korean companies to get 
into shape to compete. The restructuring means far-reaching 
reforms of the role government p^ays in the economy and 
deregulation of the banks and vima " 

Jt also means controversial reforms 
previously protected jobs at the e: 

In addition to. these challenges, 
will also have to come to terms 
unification with North Korea. Whit ultimately building a 
4aigen stronger nation, this will initially be very expensive. 

ly all sectors of industry, 
flaborlaws, whten have 
nse of efficiency^ 
ventually South Korea 
th some form of re- 

Ambitious globalization 
Since the final quarter of 1 995, the Sotih Korean economy has 
entered a downturn that it currently sejms unable to break out 
-of. Despite some indications of a mAiest turnaround in the 

Both government and the nation's top conglomerates, or 
chaebols, are now coming to that realization. Most have 
embarked upon ambitious globalization programs that are 
turning them into formidable multinational companies with 
extensive worldwide operations networks. 

There are also signs that some of these big companies, 
traditionally nurtured by government and allowed to exist on 
bank credit rather than raising equity finance, will be allowed 
to sink if necessary. 

“The key objective of the restructuring is to have all 
participants understand that resources should be efficiently 
allocated.” says Mr. Rhee. 

Opening the economy 

There are also signs that foreign participation in the South 
Korean economy, after decades of protectionism, is being 
encouraged. Unlike the Southeast Asian economies. South 
Korea has followed the same route as Japan and Taiwan and 
self-financed its own economic miracle, using its own man- 
power. With annual savings of 36 percent of GNP. there has 
been no shortage of domestic funds. Foreign direct in- 
vestment in South Korea still amounts to less than S10 
billion. Few foreigners live and work in South Korea, which 
after centuries of invasions from its neighbors has a repu- 
tation for being somewhat xenophobic. 

“My vision is that in the year 2015, we have at least $200 
billion in direct foreign investment and at least 2 million 

The capital city of Seouiis South Korea's 
business hub. 

South Korea still 
seems somewhat 
remote at present. 

Only 1 percent of 
the country's 9 
million registered 
cars are non- 
Korean, for in- 
stance. South 

Korea's domestic industries are also understandably ap- 
prehensive about an influx of international competitors. , 

The government says that more than 97 percent of South 
Korea's business sectors have been opened to foreign par- 
ticipation and that further liberalization is in progress. In- 
centives are also being offered for foreign direct investment 
that brings in advanced technology. South Korean industries 
still lag behind some of their international competitors when 
it comes to high-tech innovation. They excel in producing 
existing technologies cheaply rather than devising their 

Fundamental flexibility 

Few doubt that in the long term. South Korea’s furore is 
bright. The question is how long it will take for the re- 
structuring to filter through and the economy to stage its 
recovery. “I would say that in two to three yeans we will start 
to see the real benefits of the reforms that we are now 
undertaking," says Mr. Kang. “Once we know we need to 
change, we will change rapidly." 

‘"South Korea would not have come as far as it has without 
its fundamental flexibility." agrees Dongbang Peregrine's 
executive vice president Warren Allderige. “ From 1953 to 
today there has been tremendous change, and really only in 
one direction, it is an incredible success story." Paul Hicks 

y South Korea Is Opbi 24 Hours a Day On-Line 

V\l:©me to 

; > ! 


n t 

- n 


A -- 

The Internet is a key resource for dis 
ering South Korea. Whether your interests 
center on business, politics, news, travel on 
culture, most of the sites in the following f 
selection include a wide range of hyperlinks 
to point you in the right direction. 

Doing business 

j The Korea International Trade Association 
-4 (KfTA) site (http://www.accesskorea.corri/ 
- * provides information on the One-Stop in- 
vestor Services offered by the Comprehen- 
sive Assistance Center for Foreign 
menu and an online inquiry service. Among 
delinks to related sites is the Korea iTraae- 
investment Promotion Agency (KOTO) 

fome page (Wtp://, 

'offers visitors a search engine aswetfssa 
vast selection of links organized by •<» 
egory : economics and trade, govern 
organizations, South Korean company 
home pages, statistics, travel wAmom. 

Most of the big Korean companies iwe 
extensive Web presences. VisrtDaewM , Samsung K http-// and Hyundai at http.// 

The Korean Chamber of 
Industry site (http:/ , /wvmkt»r.<^-*)'0^i^ 

agMaSeto doing business in ^ 

features the KCCI business 
Wes about the South Korean economy snd 

industrial trends- 

The South Korean govern- 
ment’s home page is at http: 
//, and nearly 
every government organize 
tion or ministry maintains its- 
own site. The Ministry of Fi- 
nance and Economy (http://, offers links to 
these organizations, in addi- 
tion to information on busi- 
ness and the economy. 

In the news 

To discover the latest news 
coming out of South Korea, go 
to the Korean Overseas In- 
formation Service (K0IS). at The 
latest happenings from the 
Korean political scene are on- 
line at http:/A y ww.korean 
including a section on the 
forthcoming presidential elections. English- 
language news directly from Seoul is avail- 
able from the Korea Herald newspaper's 
site at http:/ •' 

I Travel and tourism 

The Korean National Tourism Organize- 
Lion's site ( 
ordvides a wide range of information, in- 
cluding visa requirements, tour programs, 

1 accommodations. Information about 

South Korean capital. Seoul, can be 
)und on the Welcome to Seoul home 
, e< P.H. 

: } - , **■.**. **■«***" 


Trading in the Big Leagues 

Fundamental reform and OECD membership make country a world player. 

S outh Korea's recent 
entry into the Organi- 
zation of Economic 
Cooperation and Develop- 
ment marked a coming of age 
for a country that has striven 
for years to reach full de- 
velopment and recognition as 
one of the world's leading 
economic powers. 

“They're very proud to be 
in the OECD.” says Kevin E. 
Honan, counselor for eco- 
nomic affairs at the U.S. Em- 
bassy in Seoul. “They want 
to be part of the global sys- 
tem. They want to play with 
the big boys. And I believe 
they will learn a lot from that 
experience. ” 

The Commercial Sendee 
at the U.S. Embassy 1 in Seoul 
calls South Korea the “little 
unknown superstar" — and 
: for good reason. By the end 
of last year. South Korea had 
the world’s 1 1 th largest econ- 
omy, and OECD experts pre- 
dict it will become one of the 
globe’s top seven economies 
by 2020. 

South Korean goods are 
now sold around the globe in 
ever-increasing numbers, 
with exports expected to 
reach a record $130 billion 
this year. From LG refriger- 
ators to Hyundai automo- 
biles and Samsung video cas- 
sette recorders. South 
Korean brands have become 
household names in over a 
hundred countries. 

Imports are also expected 
to hit record levels this year, 
possibly surpassing $150 bil- 
lion for the first rime. South 
Korea's foremost source for 
foreign goods is the United 
States, which accounted for 
$30 billion in sales last year, a 
25 percent increase over 
1 995. South Korea is now the 
United States' fifth largest 

export market and seventh 
largest overall trading part- 
ner. Last year, U.S. exports to 
South Korea surpassed ex- 
ports to Japan for the first 
rime in 13 years. And the 
South Korean market con- 
tinues to exceed U.S. exports 
to China. 

“South Korea is a major 
player for the United States,” 
says Tami Overby, executive 
director of the American 
Chamber of Commerce 
(AmCham) in South Korea. 
".American business contin- 
ues to do very well here. ” 

Unlike other booming Asian 
countries, which tend to have 
large trade surpluses, South 
Korea has long been plagued 
with a sizable trade deficit. 

One reason is large oil im- 
ports to meet South Korea's 
rapidly expanding energy 
needs, with increased fuel 
consumption in both facto- 
ries and on highways. 

Another factor is poor per- 
formance by many South 
Korean exports. Automobile 
and petrochemical exports 
have slumped in recent years, 

while semiconductor ex- 
ports, especially 16 megabit 
DRAM < dynamic random 
access memory) chips, 
showed a decrease in sales of 
as much as 75 percent in the 
first quarter of 1997 com- 
pared with the same period 
last year. 

A widely hailed develop- 
ment emerged in June, 
however, when South Korea 
reported its fust monthly 
trade surplus since Decem- 
ber 1994. The $98 million 
surplus was fueled by newly 
surging exports of semicon- 
ductors. petrochemicals, 
automobiles and steel 
products. Exports for the 
month rose 92 percent to a 
record high of S 1 2.35 billion, 
while imports climbed 4.4 
percent to $1225 billion. 
One reason was the yen’s rise 
against the dollar during the 
previous months, which 
pushed up the prices of ex- 
ports from Japan. South 
Korea’s largest industrial 

Though the country 
showed a trade deficit in July. 

Continued on page 18 

Population: 44.5 million 
GNP: $490.4 billion 
Per capita GDP: $10,622 
GDP growth: 7.1 percent 
Unemployment: 2 percent 
Total exports: $128.3 billion 
Total imports:$143.5 billion 
Trade deficit: $15.3 billion 
Current account deficit: $23.7 billion 
Foreign exchange reserves: $33.2 billion 
1996 figures. Source: iNG Barings. 

The Economy for 
The 2 1st Century 

tj Kang Kyong Shik is the deputy prime minister and 
,y minister of finance and the economy of the Republic of 
* Korea. 

liTiar are the principal problems that have caused the current 
slowdown in the South Korean economy ? 

The Korean economy now ranks as the world's 1 1th in 
terms of GNP scale and 12th in terms of trade volume. The 
rapid development that enabled Korea's rise to this level can 
be attributed to the educated labor force, dynamic en- 
trepreneurship and the government's oufwartf-oriemed de- 
velopment strategy. However, the vitality thar drove this 
dynamic development has slackened, leaving various dif- 
ficulties in its wake. 

High wage rises, financial costs, , transportation costs, 
difficulties in acquiring factory sites and over-regulation, 
which have persisted since the’ 1980s, have weakened our 
S comparative advantage in the international market 
i The structural weakness has been caused by foe inability of 
5 the Korean economy to keep up with the worldwide trend 
I toward globalization and development of information tech- 
gnology. Therefore we need to push forward with structural 
I reform, in keeping with the principles of the market econ- 

HTiat steps are being taken to achieve these structural 

In the past few months, the government announced our 
National Agenda 2 1 , which identifies 2 1 major tasks of high 
priority to be carried out before die end of foe millennium.'in 
formulating the agenda, our utmost concern was to remove 
impediments to foe proper functioning ofthe market and to 
bring domestic institutions and policies in line with in- 
ternational standards. 

Some of the priorities of foe agenda include reallocating 
responsibility between central and local governments to give 
the latter more autonomy, deregulating entry to markets and 
enhancing labor market flexibility. The agenda places an 
emphasis on informa- 
tion infrastructure 
and technological de- 
velopment, reflecting 
our recognition that 
more of the future 
growth potential 
should come from 
productivity in- 
creases rather than 
foe expansion of con- 
ventional factor in- 

What progress is 
South Korea making 
in the globalization of 
its key industries ? 

I believe that pro- 
tecting domestic in- 
dustries from foreign 
competition under the 
WTO framework is 
unacceptable as well 
as detrimental to foe 

competitiveness of domestic industries. Accordingly, foe 
government is in foe process of eliminating restrictions 
placed on foreign direct investment and on the overseas 
activities of domestic companies. 

IVhat steps ha\-e been taken to encourage greater foreign 
investment in South Korea ? 

..Traditionally, Korea has tended to discourage foreign 
participation in our economy, but we are now making a 1 80- 
degree turn. In foe wake of globalization, we have realized 
that foreign investment will become foe driving force behind 
our economic development Therefore, we need to carry out 
our liberalization plans in a timely manner to improve foe 
investment environment aDd raise it to the standard of 
advanced countries. 

We have simplified foe procedure for foreign investment 
through the establishment of the notification procedure and 
1 the introduction of foe ‘one-stop-shop service.’ In addition, 
various tax incentives have been adopted, mainly for foreign 
direct investment accompanying advanced technology, al- 
lowing for reductions or exemptions on corporation tax. 
income tax and local tax. Also, foreign investors taking up 
sites in industrial estates designated for foreign investors are 
entitled to reduced rents. 

Do you expect to see an improvement in the South Korean 
economy in the near future? 

Since the fust quarter of 1 995. the Korean economy has 
entered a downturn in its business cycle. However, many 
recent economic indicators suggest a gradual reversal of this 

We believe that the pace of economic growth will speed up 
during the second half of 1997. and we also look forward to 
a significant improvement in the current account deficit. 
However, despite these positive indications, we expect that a 
revitalization of the economy will take a considerable length 
of time. 

The future prospects for foe Korean economy rest largely 
with its ability to firmly establish a market economic frame- 
work through timely structural adjustment, in preparation for 
the 21st century. This will inevitably involve a period of 
turbulence along the way. but now we know that we need 
changes, I am confident Korea will achieve those changes 

, Interview by Paul Hicks 

Kang Kyong ShBt is a leatSng voice ri 
South Korean economic reform. 

South Kansan electronics products have become household names. 

“Bult for Business: Soith Korea” 
was produced in its entirety' by the Adwrtising Department 
of the International Herald Tribune. 

Wrtters: Paul Hicks in Hong Kong. 

Joseph R. Yogerst in San Diego. Terry Swarbberg in Munich. 
Program Director: Bill Mahder. 


PAGE 18 



' •' ,v£F.C* * 


Innovation Is a 
National Priority 

Government and industry lead R&D investment. 

W hile South Korean 
companies have 
made aggressive 
strides toward capturing a 
bigger share of the world 
market in several technol- 
ogy-intensive industries, 
they have so far lagged be- 
hind other competitors such 
as Japan and the United 
States in terms of their com- 
mitment to technological in- 
novation. In essence, the 
South Korean miracle has 
been built on the successful 
commercialization of exist- 
ing technologies, rather than 
the invention of new ones. 

This is not necessarily a 
bad thing. After all. South 
Korea has rapidly developed 
leading global industries in 
automobiles, semiconduct- 
ors and shipbuilding, to name 
but a tew. simply by import- 
ing those technologies. 

'"“Developing your own 
technology is an obvious 
thing to do,” says Kwon 
Yong Won, deputy director 
of the industrial planning di- 
vision. Ministry of Trade, In- 
dustry and Tourism, “but 
sourcing technologies at 
cheap prices from others is 
also a good strategy." 

Active role 

There is now. however, a 
widespread recognition 
among South Korean com- 
panies of the need to spend 
big to close the country's in- 
novation deficit. By 2002. 
the government also aims to 
raise R&D related spending 
to 5 percent of the annual 
budget, bringing it much 
more into line with that of 
other OECD countries. 

Leading economic ana- 
lysts like Park Ung Suh. pres- 
ident of the Samsung Eco- 
nomic Research Institute, 
believe it is time for South 
Korea to take a much more 

active role in investing in 
technological development 
for the future. 

“We should be taking ad- 
vantage of world technolo- 
gical know-how and. instead 
of importing technology, we 
should hire the world's best 
scientists and put them to 
work for us." says Mr. Park. 
“In the future. I would like to 
sec at least 80,000 foreign 
scientists, engineers and spe- 
cialists living in Korea, get- 
ting very attractive salaries 
and working side by side 
with Koreans.” 

Leading the way 
Most of the Korean con- 
glomerates arc now spending 
big on R&D. with even big- 
ger plans in the pipeline. The 
conglomerate ‘ Ssangyong. 
Korea’s sixth largest com- 
pany, has adopted "acceler- 
ating technological innova- 
tions" as its key strategy for 
the future. Noted for its tech- 
nological innovations in tele- 
communications. environ- 
mental technology and other 
cutting edge technologies. 
Ssangyong opened South 
Korea’s first private research 
center in 1975. Since then, 
the Research Center in Seoul 
has evolved to become one of 
the more prestigious insti- 
tutes in the world. 

The center's R& D activ- 
ities initially focused on spe- 
cialist research in inorganic 
materials such as cement and 
precision ceramics, but have 
since advanced to new areas 
like electronic and magnetic 
based materials and environ- 
mental technology. A huge 
milestone was achieved by 
the institute when it received 
the world's first ISO certi- 
ficate for ferrite manufactur- 
ing in 1994. 

Samsung currently spends 
5.2 percent of total sales on 

Samsung: A New Way of Doing Busini 

Significant resources are aBotted to technologicNdevek&nenL 

research and development 
and employs more than 

1 7.000 researchers, mostly in 
electronics. By the year 
2000, the company plans to 
invest 12 percent of total 
sales in R&D and employ 

50.000 researchers. 

Core technology 
The Samsung Advanced In- 
stitute ofTechnology (SAIT) 
was established in 1987 to 
lead Samsung's development 
of advanced core technology 
and next-generation prod- 
ucts. The facility is linked by 
supercomputer to all Sam- 
sung affiliates, providing 
technical support and sharing 
information. SAIT has des- 
ignated eight strategic areas 
for research: digital signal 
processing, laser applica- 
tions. mechatronics. com- 
puters and application soft- 
ware. data transmission, 
next-generation display and 
environmental and energy 

State of the art 
Another example of a South 
Korean company that is 
spending big on new product 
development is Hyundai. 
Says Hyundai Motor Com- 
pany's Lee Noi Myong: 
“With the belief that it can 
transform the impossible into 
the possible, HMC is invest- 
ing in the future by spending 
heavily on research and de- 
velopment to acquire the high 
technology needed to develop 
newer and better products." 

Last year, HMC opened a 
350-billion won ($391 mil- 
lion), state-of-the-art R&D 
center west of Seoul . One of 
foe top 10 automobile R&D 
centers in the world, foe com- 
plex is equipped with 60 ki- 
lometers (37 miles) of test 
track and employs a research 
staff of over l .000. 

The company plans to in- 
vest a total of $6.25 billion by 
foe year 2001 in research and 
development. Currently. 
HMC invests 5.2 percent of 
its total sales revenue in 
R&D, but it plans to gradu- 
ally increase this to 8 percent 
of total sales revenue by the 
21st century. The company 
also hopes to expand its glob- 
al research team to 1 0,000 by 
the year 2000. 

Three-phase effort 
As pari of its globalization 
efforts, the Daewoo group’s 
management has undertaken 
a commitment to “Daewoo 
Technology.” a three-phase 
effort to upgrade product 
technology into the coming 

By foe year 2000. Daewoo 
expects to complete the con- 
struction of an integrated re- 
search complex covering 45 
acres in Yong-in, a suburb of 

The group also expects to 
establish 30 overseas re- 
search centers, employ 
20.000 group research per- 
sonnel and make total R& D 
investments of S2.5 billion. 



Less than 60 years ago, Samsung was just a small South 
Korean trading company supplying rice and agricultural 
products to its neighbors. 

Today, Samsung is a conglomerate of 36 businesses, 
ranging from electronics, chemicals, machinery, automo- 
biles, construction and fabrics to entertainment, financial 
services and insurance. 

The Samsung Group has already built a formidable global 
presence of 423 offices and facilities in 68 countries. By the 
year 2000. Samsung's goal is to be one of the world’s top 
10 corporations, with annual sates of $200 billion, and 
among the world's top five electronics manufacturers, with 
annual sales totaling more than $56 billion. 

Besides continuing to invest in producing and offering 
products and services of the highest quality. Samsung 
hopes to. achieve this goal through a far-reaching policy of 
globalization. That means notjust manufacturing and selling 
more products overseas, but also rethinking the group's 
entire structure and management philosophy. 

“When Samsung establishes itself abroad, it must take 
full advantage of the geopolitical location, resources and 
services that each country has to offer” says Samsung 
Chairman Lee Kun Hee. “But we must also ensure that the 
results benefit both Samsung and the host country. Mutual 
understanding, respect and communication are critical com- 
ponents of successful globalization.” 

A good example is Samsung Tijuana Park, foe company’s 
$200 million facility in Mexico, which employs some 2.300 
people to make color TVs, VCRs, color picture tubes, tuners 
and cameras. By the year 2000, the plant will employ 
another 7,000 people, with an additional $600 million 
investment. Samsung Tijuana, unlike some companies that 
simply use local labor, will also obtain 90 percent of all its 
materials locally by then. The same principle is at work in 
Samsung facilities at Wynard Park in Britain, in China and 
around the globe. 

A key component of the globalization strategy is to loosen 
the grip on detision-makingthat Seoul has over its overseas 

“This dependence on the top is natural and very much a 
cultural trait for Koreans, but it has to change,' says Park 
Ung Suh. president of foe Samsung Economic Research 
Institute. “Like a young baby, each of our overseas compa- 
nies must at a certain stage be weaned from the mother's 
milk. Ultimately, it must either learn to fend for itself or 

Since 1995. Samsung has divided its global operations 
into five regions, with a regional headquarters for each. 
restructuring has devolved much of foe decision making 
from South Korea to the local country, and aims to create a 
“second-level Samsung’ with a much higher degree of 
autonomy in each region. 

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Samswg is adfyfag its productionand management systems and strategies to the new naffies of the global martetpiace. 

Trading in the Big Leagues 

Continued from page 17 

this figure was down 72 per- 
cent compared with foe same 
period a year earlier, to $806 
million, as sales of semicon- 
ductors and petrochemicals 
fijeled foe biggest export 
growth in 1 8 months. While it 
is too early to talk about a 
complete turnaround, this im- 
proved performance indicares 
that exports could be on track 
for a recovery if South Korea 
continues its reform efforts. 

Competitive edge 

Chun Joon ChuJ, commis- 
sioner of South Korea's Fair 
Trade Commission, pulls no 
punches when it comes to 
tackling trade problems. “It 
is imperative that South 
Korea establish a market 
economy framework that is 
up to the level of the ad- 
vanced nations and encour- 
age economic subjects to cut 
costs, develop technology, 
streamline organization and 
pursue new business oppor- 
tunities." he says. 

The Korean International 
Trade Association recently 
announced that pricing 
factors are foe biggest culprit 
in South Korean goods' loss 
of competitive edge. Among 
the catalysts cited by KITA 
are rising wages, inflation 
and interest rates at home. 
South Korean wages are 
rising faster than those of any 
other OECD country, and 
South Korea now has foe 
second highest average 
wages in Asia, after Japan. 
KITA says that the South 
Korean worker’s average 
monthly wage is now $ 1 .568. 
compared with $1,230 in 

“Sure, the cost of labor is a 

problem." says Mr. Honan. 
“South Korean companies are 
going offshore in an effort to 
find cheaper labor for their 
manufacturing. And foreign 
companies are thinking twice 
about setting up lactones here. 
They’ve got to get more co- 
operation in the management- 
worker paradigm, and they 
haven't found a way to match 
productivity and wages." 

Systematic reforms 
“South Korean businesses 
arc losing their competitive- 
ness." says Mr. Chun. 
“Therefore, the government 
plans to focus its efforts on 
reforming regulations where 
such weaknesses are found. 

That is precisely why the 
government has ideitified 1 0 
types of businesses — in- 
cluding logistics, transporta- 
tion. distribution, securing 
factory- sites and pofcssional 
services — that an subject to 
reform. In these areas, the 
government plare to make a 
comprehensive aid system- 
atic examination of regula- 
tions that restran competi- 
tion or incur burdens on 
business activitcs and re- 
move unneecssoy ones.” 

Seoul is fitly cognizant 
that reforms neiessary to put 
South Korea bark on a com- 
petitive footin' will not be 
easy to implencnt 

“In any rcgilatory reform 

• - 

effort, there is bound to be .T 
opposition from related, as: j 
sociations,” says Mr. Chintr J 
"This is because agencies in ? \ 
charge of foe regulatiortj ‘ \ 
worry that their agency wife "j 
be downsized. Also. som£ ... 1 
groups suffer as a result of 1 
regulatory reform efforts. 
However, regulatory reform 
is not designed to protect cep*' 
tain interests or certain in- 
terest groups. It is aimed at 
strengthening foe nation as a| jp 
whole and enhancing the ef- ^ 
ficiency of the economic sys^ 
tern. Ill ere fore, overcoming 
opposition from the related 
groups may constitute one of 
the most important issues.” ’ 
Joseph R. Yogerst 

Top Facilities Draw Hicb-Prorle Trade Shows 

South Korea's convention and exhibition 
facilities are modest by comparison with 
major trade show destinations like Honj 
Kong and Singapore, but facilities improvi 
each year, and Korea continues to attrac 
an increasing number of intemation;! 

Seoul cracked the top 20 of worid con- 
vention cities two years ago. and the Co- 
vention Bureau of the Korea National To»r- 
ism Organization (KNT0) says that tie 
number of global events staged in Kona 
has grown by an annual average of :.6 
percent over the last 10 years. 

Last year. Korea hosted 395 interna- 
tional events attended by 207.000 foregn 
delegates, most of them in Seoul. 

The nation's premier convention md 
trade show venue is the Korea World Trade 
Center in Seoul, which embraces the K*rea 
Exhibition Center (KQEX) as well as the 
InterContinental Hotel, the City AirTeminal 
and a shopping mail. 

The four-story KOEX contains fore? ex- 
hibition halts foe size of football feids. 

including a multifunctional hall that can ac- 
commodate 5.300 delegates. 

Currently under construction in the cap- 
ital is a new convention center that will be 
able to accommodate the 10.000 dele-' 
gates expected to attend the Asia£urope 
Summit in 2000. u 

A dozen £eoul hotels are also able to 
< ?r''f nt,ons or meetings with more 
than l .OOOfJeiegates. Among these are the 
Seoul H.tyn (3,200 capacity), the Hotel 

a 5oo?' i and Wle Grand SeaM 
Amongfthe high-profile trade shows and 
events thpt Korea is hosting in the latter half 
of this year are the 85th FDl Worid Dental 
Congress (Sept. 59). the Korea Intema- 
hortal_ Computer Graphics and Multimedia 

Exhibrtibn (Sept. 22-25), the 3rd Worid Bon- 
sai Convention (Oct. 24-26). the Pusan In- 
ternational Footwear and Sports Leisure 
Goods Fair (Nov. 6-9) and the World Amuse- 
rant Machines and Attraction Show (Dec. • j 

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PAGE 19 


PAGE 20 




Beyond Chips: Broadening the Brand i Daewoo: a leader in eastern Europe 

Electronics firms cue rethinking their strategies in order to lessen their dependence on memory chips. 

F rom TV sets to microwave ovens, memory chips and single panel to load ail three primary colors makes it 
satellite dishes South Korean consumer electronics technologically far more advanced than its competitors, 
and electrical components are among the best- Samsung expects to have mass production capability b> 

selling around the globe. . 4 . 

Semiconductor production in particular is one ot South Hyundai Electronics is another company that has pcu.ii 
K orea's major industries, especially DRAM (dynamic hit hard by the down rum in the semiconductor industry, 
random access memorv j chips. Despite a decline in export still rhe largest sector of its business, 
value by some 14 percent last vear due to a dramatic two- “In the near to middle terra, we will lessen our uc- 
thirds plunge in DRAM prices, exports in 19% still totaled pendence on semiconductors, which are too cyclical in 
SI 5 billion, or around 1 2 percent of the country's entire their demand and require a huge capital investment." >a>s 
exports. Hyundai Electronics Industries Co. vice president tor 

The country’s three producers of DRAMs — Samsung corporate planning and coordination. Cho Kvu Chung. 
Electronics. Hyundai Electronics and LG Sent icon — are Unlike Samsung or Daewoo. Hyundai is not know n tor 
estimated to account for about 35 to 4U percent of the consumer products, but focuses on component* and tech- 
world's total output. nologies. in which it enjoys a reputation for high quality. 

After last year’s disastrous performance in the sector. Hyundai Electronics divides itself into four business units 

JNG Barings currently recommends ac- . — semiconductors, components i such a> 

cumulating stocks in the nation's three stmth Korea’s TFT-LCD). multimedia technology and 

DRAM producers. telecommunications. 

•*We believe the DRAM cycle has three producers of 

turned the comer and that positive earn- dram c Ss»n<airuf Cost-competitive 

ings momentum is once again favoring Samsung Mr. Cho believes that of Hyundai > tour 

the producers." said Han llsuk an ING Electronics, Hyundai business units, telecommunications is 

Barings electronics industry analyst. end LG the arca ‘ n wh * ch South Korean conipa- 

Demand for DRAMs is expected to nies have the greatest comparative ad- 

remain strong this year, fueled by growth Semicon — araestr- vantages. 

in global PC shipments and the rise in matott tn xenunt for are not so good in area* like 

average memory per PC shipped from 24 multimedia, where the consumer market 

megabits to 34Mbits. approximately drives the industry, because we lack the 

Nonetheless, the sudden drop in prices 35 to 40 meant brand strength." he says. “South Korean 

in 1996 hit South Korean companies percent companies excel in areas where cost is 

hard, and many have been rethinking of the world's the major factor — what we are good at is 

their strategies so as to lessen their de- ta tetautnut being cost-competitive." 

pendence on memory chips. output Daewoo Electronics is applying the 

“For all our successes last year, we same logic to the domestic appliances 

have no choice bur to view the results of 1996 as a reality market, taking traditional products and producing ihcm 
check." says. Yun Jong Yong. president and CEO of competitively. In the early 1940$. Daewoo Electronics Co. 
Samsung Electronics. established its “TANK" manufacturing campaign to 

Despite the successful introduction of exciting new design and produce home appliances and consumer elec- 
products like the I gigabit DRAM. WorldBEST Pius TV. trontes that employed “practical, user-friendly lechnol- 
DYD (digital versatile disc) and CDMA (code division ogy" and that were of high quality, durable and *imple to 
multiple access), laying the groundwork for a new gen- operate, 
eration of multimedia technology, “the decline of the 16 
Mbit DRAMs did affeer the company drastically." Mr. Yun Home appliances 

admits. In contrast to other South Korean manufacturers such as 

According to Mr. Yun. Samsung's future focus w ill be Samsung or LG. Daewoo has kept its focus on traditional 
on telecommunications, microprocessors and other non- home appliances rather than advanced electronics tech- 
memory products. “They arc the solid base on w hich the nology. “Our most important innov alien* are in cosi-dow n 
digital future will be built — tiie key to better, more technology, trying to find ways to nuke existing ap- 
reliable and more capable product* to connect the global pliunces better for lower cost." says Chang Kyu Hu an. 
communitv." he savs. ~ Daewoo Electronics' executive director. Advanced Tech- 

Sewth Korea’s 
three producers of 
DRAMs — Samsung 
Electronics, Hyundai 
Electronics ami LG 
Semicon — sue esti- 
mated to account for 
35 to 40 percent 
of the world's 
total output 

New technologies 

In an attempt to be less dependent on memory chips. 
Samsung Electronics ha*, for instance, stepped up its 
efforts on Thin Film Transistor- Liquid Crystal Display 
(TFT-LCD) technology for notebook computers, with 
phenomenal success. 

In June. Samsung announced ihe introduction of the 
world's highest resoTution TFT-LCD. v\ ith 430.000 pixels 
per square inch. The TFT-LCD has 6.5 times more pixels 
per square inch than the current market leader, and its 

design and produce home appliances and consumer elec- 
tronics that employed “practical, user-friendly technol- 
ogy ” and that were of high quality, durable and *imple to 

Home appliances 

In contrast to other South Korean manufacturers such as 
Samsung or LG. Daewoo has kept its focus on traditional 
home appliances rather than advanced electronics tech- 
nology. “Our most important innov ation* are in cosi-dow n 
technology, trying to find ways to nuke existing ap- 
pliances better for lower cost." says Chang Kyu Hu an. 
Daewoo Electronics' executive director. Advanced Tech- 
nology Laboratory One. 

Already one of the world's top It) producers of home 
appliances, the company aims to become one of the top 
three by the year 20<H» and is expanding its ncivv ork to 
areas such as Mexico. Poland. Uzbekistan. Malaysia. 
Vietnam and South Africa. 

“People will always need TVs. refrigerators and mi- 
crowaves.** says Mr. Chang. “By constantly improving 
these models at low cost in newly emerging 'markets, we 
will certainly become one of the world’s most important 
suppliers of these traditional items." P-H, 

With integrity, leadership, and imagination, 
the future knows no boundaries. 

Founded in 1967 as a small textile trading company. Dae- 
woo has become South Korea's fourtWargest conglom- 
erate'. with 220.000 employees. 31 domestic companies 
and 275 foreign subsidiaries. Last year, sales rose td S68 

In what was widely regarded as a high stakes move tor the 
company — and for the future cf investment from .Asia ir, the 
region — in 1993 Daewoo launched its strategy to make 
Central and Eastern European (CEE; and adjoining areas In 
the Commonwealth of Independent States (CIS) the major 
non-Asian focal point of its ambitious attempt to become one 
of the world's top 10 manufacturers in a number cf sec- 

An attractive combination of low production costs and a 
large potential for future market growth led the company to 
choose this region. 

me initial reports on these investments are in, and 
Daewoo is satisfied with the results. So satisfied, if fact, mat 
Daewoo Chairman Kim Woo Chong has said. “We are not 
ruling out the making of further investments in the region. 

Though seemingly non-sensational in nature, this state- 
ment has met with a great deal of interest from politicians 
and business executives in the CEE region — and from 
financial analysts around the world. 

Tremendous range 

Daewoo was not part of the first wave of companies investing 
in the CEE. but the South Korean giant has rapidly become 
one of the largest foreign investors in the region. 

Moreover, these investments, comprising 55 of the com- 
pany’s 380 current projects outside South Korea, shew a 
tremendous range, both in terms of sectors and 'm countries. 

In the motor vehicles sector alone. Daewoo has acquired or 
set up three auto- 
mobile and com- 
mercial vehicle 
manufacturing and 
marketing subsidi- 
aries in Poland, a 
commercial vehi- 
cles manufacturing 
company in the 
Czech Republic and 
passenger car pro- 
ducers and suppli- 
ers in the Ukraine. 

Romania. Hungary 
and Uzbekistan. 

Daewoo has big 
plans for these 
companies. re- 
portedly intending 
to expand its CEE 
subsidiaries' annu- 
al output from 
199 7 's 42 5.000 Daewoo has emerged ss fie largest carmaker in 

units — 72 percent 500.000 vehicles in the CEE and CIS this year. 

of the company's 

non-Korean production — to 1 million units ■represemirg 
t.-.o-thirds of the projected production; by 2CCC. The com- 
pany is equally expanse e in its ether areas of business, 
including home appliances manufacturing ■ =oiano. Uzbek 
istan and Kazakhstan), telecommunications equipment and 
services (Uzbekistan. Kazakhstani and financial services 
■.Hungary. Romania and Uzbekistan). 

Going strong 

The world’s financial analysts are ccsely following this large- 
scale expansion. They see its success as a key to the 
continuing prosperity of Daewoo — and to the mairtsrsnee 
of the inflow cf international capital into the region. 

Mr. Kirn has good r.s.-.s for the analysts. Daewoo's 
operations m the region are flourishing, as is the CEE region 
itself. And the best is yet to come. 

■•Considerable though it is. the progress recorded by 
these economies has represented just the beginnr.gcf their 
emergence from the doldrums of the Cold War era. ' ' says Mr. 

held by- 

has been 
true in Pol 
ket in v 
sumer d 
ant Oth 



the acc 
Kim’s a 
the regi 




The w 

the C 

be they h the public or private sector. We strongly believe iri 
this approach.” says Mr. Kim. 

ing to him. this “go it together” policy has paid off 

our projects have met with a great deal of co- 
operation from various host governments and business 
partner^ in Central and Eastern Europe, and this has been 
one key reason why the projects have all been completed on 
or evenahead of schedule. This cooperation has been highly 
gratify) fig. as have been the skills and adaptability displayed 
by our peal workforces.” 

Of course, not all has been smooth sailing. "There have 
been diltural differences to overcome, but here. too. we 
have made great progress.” says Mr. Kim. “Everything 
hasn't eiways gone according to plan, as is always the case 
in business life, but looking at the region as a whole, we are 
where we expected to be at mid-1997 in terms of progress 
and results.” 

Tern Swartzberg 

Stimulating International Investment; 

.4 series nf major reforms will radically transform the financial sector. 

D uring the early stages of South 
Korea's economic develop- 
ment. the government con- 
trolled the financial industry, directing 
rhe country's limited capital imo the 
manufacturing sector. But since the 
early 1990s. the government has been 
easing its grip to allow market force* to 
dictate the allocation of fends. A series 
of far-reaching reforms are now under 
way that will radically reshape South 
Korea's lagging financial sector. 

In his New Year address this year. 
President Kim Young Sam announced 
the launch of the Presidential Com- 
mission for Financial Reform to over- 
see the speedy transformation to a fi- 
nancial sector that is “competent, 
convenient and confidential.” 

"The key objective is for banks to 
have more autonomy to allocate capital 
resources more efficiently so that loans 
more adequately reflect the assets 
companies hold." says Nanruh Rhee. 
director of Dongbang Peregrine Secu- 
rities Ltd. 

Universal banking 
A number of reforms are in the pipeline. 
First is the introduction of a “universal 
banking system.” which will allow fi- 
nancial institutions to w iden the scope 
of sen ices they offer, increasing their 
competitivity. Second is the removal of 
controls on fees and commissions to 
.spur competition among institutions 
and to lower interest rates. 

Third is a major overhaul of rhe 
supervisory system, essentially reor- 
ganizing the different supervisory bod- 
ies into one that is more in line with the 
transition toward a uni venal banking 

More radical still is the opening up of 
South Korea's financial sector to for- 
eign participation. 

"Starting in December 1998. qualified 
foreigners will be able to set up any kind 
of financial institutions, including com- 
mercial banks, and maintain I0O per- 
cent ownership. 

“Outwardly, significant si rides were 
laken in financial liberalization, par- 
ticularly with regard to foreign ex- 
change and financial industries, during 


the process for South Korea 's accession 
to the OECD, and they have since 
picked up momentum." says Finance 
Minister and Deputy Prime Minister 
Kang Kyong Shik. ■ 

While foreign investors will wel- 
come this news, there are fears that at 
influx of foreign banking institutiois 
will severely impact domestic bards, 
which lack international competitive- 

“In the negotiations for joining ihe 
OECD they [the government] unex- 

“ Significant strides were 
taken in financial Ebendbatbn, 
particularly with regard to 
foreign exchange and financial 
industries, during the process 
for South Korea's accession to 
the OECD, and they have snee 
picked up momentum” 

pectedly dealt a wild card." sa/s Kim 
Kycong Won, head of research it Sam- 
sung Securities. 

“What ail this means is a fill-scale 
opening up of the financial indistry and 
head-on competition betweer foreign 
and domestic institutions in vhich the 
latter may well fell victim to survival of 
the finest.” 

Stimulating growth 
Hong Kong-based Peregriie Invest- 
ment Holdings Ltd., one of de first and 
largest overseas financial irutitutions to 
set up in South Korea (a, the joint 
venture Dongbang Peregrin?), believes 
a greater role for overseas binks will be 
beneficial for South Korei’s financial 

“Commercial banking and retail 
brokerage arc. ultimately md naturally, 
domestic businesses thit must be 
staffed by South Korean mtionals" says 
Chairman Philip Tose. “"hrough mar- 
ket opening. foreign phyere provide 
capital, technology and e;pertise which 
strengthen and protect tte domestic in- 

i Justiy. while lowering the cost of fi-4 
i nancial services to South Korean cit-f .. 

; izens and businesses.” i 

By international standards. South } 
Korea still has a very small investment 
banking sector, with most services 
provided by foreign banks. This is iron- 
ic since, as Mr. Tose points out. “South 
Korean nationals are often highly suc- 
cessful and productive professionals in ’■ 
the world's fop investment banks.” -J 
Mr. Tose believes that international j . 
competition is the only mechanism J 
through w hich the country can harness ; 
this resource to form a truly South'i 
Korean investment bank. J 

“Peregrine's goal in South Korea is to :■ 
develop the country's first fit 1 1-service 1 
investment bank” he say*. 

Foreign investment 
Besides whipping South Korea's finan- i 
cial industry into shape, the reforms are i 
aimed at stimulating greater foreign di- { J 
rect investment in the South Korean: ! 

economy. In May of this year, the gov- i i 
emment increased the foreign ow'her - 1 J 
ship limit on any single company to 23 [ 
percent and there are indications that 
the limit will shortly ho raised even j 
further. Foreign direct investment in ! 

South Korea reached a record high of; 

m ’N' on ‘ n the first quarter \Jtr i 

oF 199/. 

“South Korea has actually welcomed ! 
foreign investment more chan is com-i 
monly thought” says Mr. Tose. “The i 
county s current account deficit re- ‘ 
tlects South Korea s vvil ii ngness to cm- J 
ploy foreign capital as a ^catalyst for' 
growth.” ; 

0\ erscas i n v ester* can currently par - ) 
ttcipate through direct investment, the ; 
purchase ot shares in South ' Korea's ! 
largest companies, investment in over- ! 
seas bonds issued by South Korean; 
companies and investment in domestic.! 
equity and fixed income fends. '! . 

Nonetheless, says Mr. Tose. “by in- i # 
femational standards, investment op-! 

" lties in . South Korean capital ; 
markets are still highly limited fertile! 

^nomy.- mPOnan, - e 0f ,he ““■"nj 


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SrONSOKKO M t I ion 



sojh anniversary 


RAGE 21 



■Value Management" lor Mankind. Society and Future 

Are You in Our Future? 

Over the past fifty years, Hyundai innovations have made 
a world of difference. 

Today, our cars move people in over 190 countries. Our oil 
tankers deliver the fuel that powers economic development 
to every continent. Our semiconductors store and process 
the data that will take technology to the next level. And 
we’ve only just begun. 

You see at Hyundai, each product and service we develop 
becomes the inspiration for future innovations. Innovations 
’ designed to meet the customer’s psychological needs as well as 


physical ones. And that will bring us all something 
very important. A better life. 

Are you in our future? 

Electronics & Communications Automobiles 




Engineering s Construction High Speed Trains 

Iron & Metals 

Resource Development 

Health Care 6. Public Service 


Building A Better World Through Value Management 

PAGE 22 





Global Vision Drives Auto Industry 

Curmakers aiv inavasingly focused on both producing and selling abroad. 

S outh Korea is currenrJy the world’s fifth largest pro- keep being lower in price, so South. Korean companies will 
ducer of automobiles and the largest in Asia after have to improve their strengths and efforts in brand mar- 
Japan. with 2.8 million vehicles produced in 1 9%. At keting. he adds, 
least two of its automobile producers have ambitions to be 

on the world’s top 10 list by the year 2000. Economies of scale , . 

Although South Korea has been a significant automobile Several years younger than Hyundai and still well behind ns 
exporter since the 1980s. expon growth is slowing to older competitor in the domestic market. Daewoo Motors is 
around 8 to 10 percent per year. This is linked to reduced nonetheless pursuing an aggressive globalization strategy 
price competitiveness overseas caused primarily by the that the company's senior executives believe will make it a 
weak Japanese yen. Exports as a percentage of automobile driving force in the 2 ! st century-. 

output rose dramatically, from 1 1 .5 percent in 1 983 to 55.8 Daewoo’s “Vision 2000" sees Daewoo Motors becoming 

percent in 1987. but shrank to 38.7 percent in 1995. 

Leading the industry 

The industry’ comprises primarily the “big three." namely 
Hvundai. K1A and Daewoo. Ssang- 
yonc and Samsung Motors will also 
enter the passenger car market in 1 997 
and 1998. and This is expected to in- 
tensify competition. 

Despite the globally soft automobile 
market last year. South Korea’s total 
domestic sales reached f .63 million, of 
which Hyundai sold 740.000. captur- 
ing about 45 percent of the total mar- 
ket. KIA came second with 29 percent 
and Daewoo third with IS percent. 

Imported cars account for only ! 
percent of the total domestic marker, 
though this will certainly be the fastest 
grow ing sector in the future. 

Sooth Korean automakers 

am globalizing their 
operations by assembling 
cars in numerous countries 
throughout the world, 
by granting their regional 
subsidiaries a high 
level of autonomy, 
and by adapting the 
cars they produce on 

each site to the 

demands of the 

local market 

International marketplace 

South Korea's number one car man- 
ufacturer. Hyundai Motor Company, 
was set up 30 years ago to meet the 
grow ing domestic demand for cars. To 
achieve what Hyundai management calls its "GT10 Vision” 
to become one ot' the world's top 10 auto producers, the 
company expects to manufacture and sell between 2.2 and 
2.4 million motor vehicles a year worldwide bv the year 
2000 . 

Achieving this \ ision means an increasing focus on both 
producing and selling overseas. 

“The domestic market has already reached its maturity, 
and the rate of growth of new vehicle sales has slowed 
considerably." says Kim Noi Myona. Hyundai's executive 
managing director, international business div ision. 

One million vehicles were registered in South Korea in 
1 985. and following rapid growth, the figure is now in excess 
of 9 million, foradiftiisionTarc of about one \ chicle for every 
five people. “Since we already have about hal f of this market, 
but an insignificant market share globally, ii is obvious that 
w e need to focus more on exports.” says Mr. Kim. 

Price competitiveness 

This year. Hyundai expects to export 650.000 cars, mainly 
to the United States, follow ed by Australia. Germany and 
several other European countries. 

“So tar. the main strength of South Korean cars in the 
international marketplace's their price competitiveness.” 
says Mr. Kim. “Ultimately, there is a limit to the way we can 

one of the world’s top 10 automakers by the year 2000. with 
a goal of selling 2.5 million vehicles at home and abroad, 
with estimated global sales of S40 billion. 

“We believe economies of scale are essential to auto- 
mobile manufacturing and that only 10 
major companies can continue to exist 
long term in the world market." says 
Han Young Chul, Daewoo Motors’ ex- 
ecutive director for marketing and 

Daewoo Motors currently employs- 
more than 25,000 people, and its 1 996 
sales reached $10.1 billion. 

Its annual production capacity is in 
excess of I million vehicles, and the 
company has invested in plants across 
the globe, including Eastern Europe. 
Uzbekistan. India and Southeast Asia. 

South Korean companies have typ- 
ically lagged behind their Japanese 
rivals in the globalization of their in- 
dustries. but a major presence in close 
proximity to each of its export markets 
is central to Daewoo’s strategy. By 
2000, Daewoo expects that two-thirds 
of its production will be outside South 
Korea, compared with less than a third at present. 

Paradigm shift 

Both Daewoo and Hyundai will have their eyes firmly on 
latecomer Samsung Motors when the latter launches its first 
passenger car on the South Korean domestic market in 
March! 998. 

“We realize that we will probably be the last entrant into 
the auto business in the 20th century.” admits Samsung 
Motors Executive Director Jung Ho Yoon. “Nonetheless, 
our target is an output of 1 .5 million vehicles worldwide by 
2010 and to become the leader of a totally new auto 

Better known as the world’s principal supplier of semi- 
conductors. Samsung believes that what Mr. Jung calls a 
“paradigm shift" toward electronics-based automobiles in 
the future will stand the company in good stead in the long 

Innovations in marketing may also help. Last year, the 
company launched the Samsung Motors Card, which al- 
lows its users to accumulate as much as SI. 250 over five 
years toward a new Samsung car. An average of 3.500 
people a day have signed up for the Samsung card, securing 
more than 2.5 million potential buvers of Samsung cars. 


Hyundai: Expanding Overseas Manufacturing 
Capabilities and Adding New Sites 

Hyundai has come a long way since 1940. when Honorary 
Chairman Chung Ju Yung began operating the small car 
repair shop that eventually grew into South Korea's biggest 

Today the Hyundai Business Group is one of the largest 
corporations in the world, with 45 subsidiaries and more 
than 200.000 employees. It is ranked 109th in the world in 
the 1997 fortune Global 500. 

Automobiles remain to this day one of the cornerstones of 
the Hyundai Business Group, and Hyundai Motors, founded 
in 1967, is currently ranked as the 14th automaker in the 
world, and aims to be in the top 10 by the year 2000. 

“Our commitment to globalization is exemplified by the 
rapid expansion of our overseas manufacturing capability, 
whit* is part of our new management strategy to localize 
operations and create greater regional management 
autonomy." says Chung Se Yung, brother of the founder and 
Hyundai Motors' current honorary chairman. 

Rapid expansion 

By 2000, Hyundai envisages overseas assembly operations 
in 12 countries, including India. Turkey, Egypt and Indonesia, 
for a total overseas production capacity of more than 1 
million cars. 

"Hyundai cars are buitt wherever it makes economic 
sense to do so." says Hyundai Motors' President Park 
Byung Jae. “Through direct investment and local job cre- 
ation, Hyundai's overseas assembly plants are contributing 
to the economic progress of local markets, increasing local 
purchasing power, and are thereby building a solid foun- 
dation for future growth. “ 

In countries with low penetration rates where Hyundai 
sees growth potential, the company has established CKD 
(knock down) assembly operations with Joral partners, no- 
tably in Thailand, the Philippines. Indonesia, Holland. 
Venezuela. Botswana. Zimbabwe and Egypt. 

Growth potential 

One of Hyundai's most significant overseas man- 
ufacturing facilities will be a new auto plant in 
India, which will begin production in October 
next year. Hyundai is investing S700 
million at the first stage to set up what 
will be the company's largest over- 
seas facility, located in Chenai. 
near Madras, to tap into the 
potentially vast Indian car 

The plant, which is 
wholly owned by Hy- 
undai. will have an 
initial production ca- 
pacity of 120,000 
units per year. At the 
second stage, an ad- 
ditional S400 million 
will be invested to in- 
crease production capa- 

HyundaTs honorary chairman 
and founder, Chung Ju Yung. 

citv to 200,000 units. The 
eventual goal, however, is 
to expand production to 

300.000 units a year - al- 
most double Hyundai's 
present combined over- 
seas production of 

155.000 cars a year. 

'India is a market with 

huge potential, but we are 
not the only ones to realize 
that. All the major auto play- 
ers are coming in. so India 
will be a huge battle- 
ground," says Hyundai Mo- , . 

tors’ executive managing director, international busirtes. 

division, Kim Noi Myong. 

Emerging market 

According to forecasts, by the year 2000 the passenger car 
market in India will have risen from 400,000 units a year to 
between 800,000 and 1 million. 

"One advantage of a newly emerging market such as India 
is that all entrants start on a level playing field. There is little 
brand awareness, and we are not held back by the poor 
quality image which South Korean cars have suffered in the 
past." says Mr. Kim. 

Hyundai is developing a car that Is tailored to the Indian 
market. Part of the company's globalization strategy is to 
conduct detailed local research on the needs of the market 
and then create products to meet those needs. The first cars 
will be ready for their Indian launch in 1998. 

Small cars, large market 

“Our research shows that right now, the biggest market in 
India is for small cars, specifically 800cc vehicles," says Mr. 
Kim. “For the first year of operation, our India plant will only 
produce one model . and this will be an 800cc car . 

Although the market is still 
■ '-tv:?**”"*” ^ largely undeveloped, the 

Indian auto industry is 
far from new. Cars have 
been manufactured, 
there since before the 
beginning of South 
Korea's automobile 
industry. This will en- 
sure that production 
is of a sufficiently high' 
standard to allow the 
cars to be exported if ; 


t by 2000.' 

f -i 



Quantum leaps toward new millennium - Nasan 


Nasan creates unique life culture 
with the differentiated business 
concept developing convenient 
mixed -use budding in urban area, 
civil works oT high-tech tunnel, 
bridges and environmental facilities. 

With the philosophy that fashion 
business devotes to the well-being 
of people. Nasan, as the leader 
of fashion business in Korean 
market, never spores the effort to 
present various modes for 
dandy male and elegant female. 

As well as the high class 
department atom. Rose-dale 
located in Seoul, with European 
style Hyper market chain 
Nasan C-lef and Category killer 
.Yisan Home Place, Nasan 
provides affluent consumer life. 

Opera fin? the first membership 
fitness center chained in Korea. 

nd amusement complex of golf counpe. 

snow s fed resort in Pochun, 
Nasan helps to establish the leisure 
culture and to contribute for the 
happiness of people. 





Energy, Water and Conservation 

South Korea implements hold solutions to consene its natural resources and protect the environment, 

I mproved living standards 
and increased industrial 
production are purring 
pressure on South Korea's 
natural resources. The coun- 
try feces a power crisis each 
winter as millions of people 
try to heat their homes and 
offices, and then again each 
summer as everyone tries to 
escape the heat. With very 
little in the way of petroleum 
or hydroelectric resources, die 
country must import 97 per- 
cent of its energy needs. The 
bill totaled more than S24 bil- 
lion last year, a sizable portion 
of South Korea's imports. 

The government is attack- 
ing the problem at both ends 
— gradually expanding ca- 
pacity and downsizing elec- 
tricity demand. 

Five dam projects are cur- 
rently under wav to increase 
hydroelectric generation, and 
the nation’s J2th nucJear 
power plant was recently in- 
augurated at Wolsung. 

About one-third 1 10.000 
megawatts i of Korea's total 
power generation is currently 
supplied by nuclear power, 
but the Korea Electric Power 
Corp. ( KEPCOl wants to up 
that figure to at least 26.000 
megawatts by 2010 through 
the construction of 10 ad- 
ditional plants. Asea Brown 
Boveri. based in Connecti- 
cut recently signed an agree- 
ment with KEPCO to assist 
in the design and manufac- 
ture of advanced pressurized 
water reactor systems for 
these plants. 

Green light 

Since 1995. the Korean En- 
ergy Management Corp. has 
been staging energy conser- 
vation campaigns with 
names like Green Motors. 
Green Lights and Green En- 
ergy Family. This summer, 
the agency distributed leaf- 
lets and traditional hand fens 
in Seoul to encouraee Korean 

consumers to cut back on 
power use. 

Water supply is another 
pressing problem. With few 
major rivers and lakes. South 
Korea is short on vital fresh 
water resources. With die 
population growing, industry 
expanding and more con- 
sumers moving into die 
middle class, wrater demand 
has risen steeply over the past 

Industrial effluents, agri- 
cultural runoff and residen- 
tial sewage have polluted 
many fresh water supplies, 
further exacerbating the 
problem. Major cities like 
Seoul and Pusan already ex- 
perience water quality prob- 
lems and water shortages, a 
situation that may soon 
spread to larger provincial 
cities and even the previously 
immune South Korean coun- 
tryside. Water authorities, 
while taking measures to in- 
crease the fresh water supply 

and enhance water quality, 
are urging South Korean- 
consumers to use less water. 
Their most effective weapon 
is rate increases. Seoul’s metr 
ropolitan water authority has; 
announced that it will raise 
water rates an average of 
nearly 1 0 percent in October. 
These increases will affect •) 
households (18.5 percent) as 
well as public water uses (20 , 
percent) like fountains. 
swimming pools and land-, 
scape irrigation. 

The government is also at- 
tempting to tackle South: 
Korea’s rapidly escalating 
solid waste problem. In 
April, the Korean Resources 
Recovery and Reutifization ’ 
Corp. announced that it will 
establish eight recycling cen- 
ters to process industrial and 
household waste by the year 
2001. The centers will be 
able to stockpile paper, 
plastic, glass and scrap metal 
for future reuse. J.R.Y. 

North Korea: Cooperation Is Needed 

Seoul has given some South Korean companies the go-ahead to invest in the North. 

T he worsening situation in North 
Korea is a persistent problem for 
South Korea’s long-term eco- 
nomic and political stability. Since the 
early 1900s. wealth in the two Kcrcas 
has become more and more divergent. 
While South Korea is one of the elev en 
richest nations in the world, with a per 
capita GNP of SI 0. SOU. the North, one 
of the few remaining hard-line socialist 
economies in the world, is certainly one 
of the poorest. The official North 
Korean government figure for per cap- 
ita GNP is S790. bur the actual figure is 
only a traction of that amount. 

Most analysts now agree that an 
eventual reunification is inevitable, and 
certainly both North and South Korea 
are. rhetorically at least, committed to it. 
The problem is that no one knows 
when. Despite the apparent failure in 
the United States last month of the first- 
ever four-party talks on peaceful re- 
conciliation. it appears that relations arc 
beginning to thaw. Talks are slated to 
resume orr September 1 5. bur it is un- 
clear whether the recent defection to the 
United States of Chang Sung Gil. the 
North Korean ambassador to Cairo, w ill 
affect this schedule. 

South Korea has been the main sup- 
plier of food aid lb the famine-struck 
North, and telecommunications links 
between North anJ South have been 

established for the first time to allow 
South Koreans working on a nuclear 
power plant in the North to call home. 

North Korea has also made its first 
tentative steps toward a market economy 
with the establishment two years ago of 
the Rajin-Sonbong Free Economic 
Trade Zone in the northeast of the coun- 
try'. on the Russian and Chinese borders. 
The North is trying to attract foreign 
capital with a two-year tax holiday and a 
14 percent tax rate on net profit there- 
after. North Korea claims it has received 
over S1U0 million in foreign investment 
since setting up the zone. 

Seoul has also recently begun to give 
the green light to South Korean" in- 
vestment in the North. Five companies, 
including Samsung Electronics and Ko- 
*011 Industries, were given approval to 
set up joint ventures in North Korea just 
before the four-nation talks in New 
York. According to South Korea's Na- 
tional Reunification Ministry, the ap- 
proval was given ’“in line with the policy 
of pursuing economic exchanges and 
cooperation to assist reconciliation and 

mutual iruM.” 

Samsung plans to invest S5 million in 
un eleeironic switching system for 
Rajin-Sonbon. while Kofon plans to in- 
vest S4 million in a joint-venture textile 
processing plant in die western port citv 
ui Nampo. These initial investments are 

just the tiniest fraction of the likely cost 
of full-scale reunification, which econ- 
omists estimate could cost $270 billion 
in the first 10 years and S3 trillion 
altogether. If North and South Korea 
were to reunify by the year 2000. it is 
estimated that per capita income in the 
new* country would drop to 60 percent of 
South Korea's current level of $10,800. 

The most obvious point of compar- 
ison is East and West Germany. 
However, in the case of the two Ger- 
manies. the East’s population was only 
a quarter of that of the West, while 
North Korea has half that of the South. 

The income differential of the two 
Koreas is also fer more pronounced 
than that of the Germanics in 1989. and 
the combined wealth of the Germanics 
certainly exceeded that of the two 
Koreas, fa other words, reunification 
will be much more difficult for Korea 
than it was for Germany. 

"There is little doubt That in the me- 
dium term, reunification would dampen 
the favorable economic prospects for 

. )^ un ® est industrialized nation." 

S r" n Soon-Won. senior director 
of Research at the Hyundai Research 
Institute, fa the long term, however, 
many believe that a reunified Korea 
"'"“Id emerge, like a reunified Ger- 
many. as one of the world’s strongest 

nations. p 



V -w 

The Nobel Prize Meual 









>i splays. They’ ARE the nobel laureates. The people who get there first. 

* possible. We follow them. We keep up, and we 

- ■ * **— ■ • — ■ - 

earn. And WE LTSE their vision to make our products better, from digital 
camcorders and wide sgreen 
-hy' Samsung is a 

t'rE proud 







Roads, Rails and Runways . r " ~ 

* * 

Transport facilities are set to become among the most advanced in Asia. 

S ou* Korea is currently 
of a trans- 
port infrastructure rev- 
olution that will transform 
V* way that goods and 
P^ple are moved cross 
country and bevond th* 

io>ea cross 
beyond the 

with Taegu. Wonju and air travel. South Korea’s 
Chuncnon. In addition, a 92- Ministry of Transportation 
kilometer circular express- estimates that the number of 
way is being built around air passengers arriving and 
Seoul, linking various satel- departin': will grow from 26 
lite suburbs. million m 19S9 to 108 mil- 

lion in 201 0. Meanwhile, the 

Counfrv'c hnrria-i , .. uoo in-mu. ivieanwnue.ine 

time nminr Air transport hub number of airlines calling on 

r me iminr . 7',. ; ' "“Fy* ‘ uuu numoer or airlines caning on 

nirm- th Airport and tourism officials Seoul is expected to grow 

km?" 11,011 Won ^ ban king on the Inchon Irom2f)to40bv 1999. 

■ thf 1 i ^ COm P ,ctcd International Airport, cur- Aviation authorities in oth- 

c Iu.. car ^ f century, rently under construction on er .Asian countries mav scoff 

(S33 billion) are completed 
rn the early 21st century. 
South Korea will be able to 
boast advanced airport, sub- 
way. expressway and high- 
speed rail systems, in some 
cases the best in Asia, if not 
the entire world. 

While South Korea’s most 
vaunted infrastructure proj- 
ect — a $6. 5-billion high- 
speed rail line between Seoul 

International Airport, cur- Aviation authorities in oth- 
rently under construction on er .Asian countries may scoff 
Yong-yu Island, to relieve at Inchon's ability to steal 
overcrowding at Kimpo Air- away their business, but the 

port near Seoul. But they also 
hope the facility will become 
a major draw for new pas- 
sengere and cargo. 

“Inchon will be the major 
international airport in 
Korea." says Lee Kyung 
Moon, president of the Korea 

and Pusan — is experiencing National Tourism Organ iza- 
grave financial, technical and tion ( KNTO ). “We expect to 
planning difficulties, other become the air transport hub 

new airport "ill have several 
things in its favor. 

The Korean Airport Con- 
struction Authority estimates 
that the final cost of airport 
development will be consid- 
erably less titan that of fa- 
cilities in Hong Kong (the 

<^y. m ■ j 

National Tourism Organ iza- almost completed Chek Lap 
tion (KNTO). “We expect to Kok airport) and Japan (the 

priority projects are forging 

Seoul's subway system, 
already one of the most ex- 
tensive of any .Asian city, is in 
the midst of a major expan- 
sion totaling more than 61 
kilometers (37 miles) of new 
track. Pusan, in southeast 
Korea, is building a second 

of North Asia because we 
will have one of the world's 
largest airports." 

When the first planes 
touch down on Inchon's 
double runways in 2000. the 
facility- will be able to process 
27 million passengers and 

recently opened Kansai In- 
ternational in Osaka). That 
means Inchon will be able to 
charge lower landing and Fa- 
cility use fees, a major in- 
centive to cash-strapped air- 

Because the new airport is 
situated well away from ma- 
jor urban areas — 52 kilo- 

track. Pusan, in southeast 1.7 million tons of air cargo jor urban areas — 52 kilo- 
Korea. is building a second per year. Development of meters from Seoul and 15 
subway line, and the cities of two additional 4000-meter kilometers from Inchon city 
Inchon. Taejon and Kwangju runways, plus larger terminal — it will be able to operate 
have initiated development of and warehouse facilities, will around the clock, unlike its 
their own subway systems. boost Inchon's capacity to challengers in Hong Kong 
Road construction is an- 1 00 million passengers and 7 and Japan. Geography is an- 
other national priority. South million tons of cargo by other plus. Inchon lies within 
Korea already has one of the 2020, making it Asia's three and a half hours' flying 
most extensive expressway largest aviation facility. ti me of 40 major Asian cities, 
systems in Asia, but author- Although Korean con- including seven of the 
ities are set on stretching the tractors are performing the world's most populous urban 

around the clock, unlike its : _ . , ~ .. ; 

challengers in Hong Kong Lockheed Martinb a major partner in the deifalopment of South Korea* first indgenous fighter plan* the KTX-Z to be produced Samsung Aerospace^ 
and Japan. Geography is an- * \ 

other plus. Inchon lies within * * nr • 

time of 40 major Asian as Soaring Ambitions for the Aerospace Industry 

including seven, of the ; 

highway vyeb to every comer bulk of construction work. 

of the country. 

Three major projects are 
currently under construction. 
The Sohaean Expressway 
(350 kilometers) will stretch 
from suburban Seoul all the 
way down the west coast to 
Mokpo. providing easy ac- 
cess to medium-sized port 
cities like Poryong and Kun- 
san. as well as an alternative 
way to reach Kwangju. Once 
k is complete, the Chung- 
Ang Expressway will be the 
major land route across east- 
ern Korea, linking Pusan 

the new airport was designed 
by Bechtel Corp. of *e 
United States, and American 
aerospace firms will provide 
the air traffic control infra- 

Overall cost of the project 
was tagged at 3.4 trillion won 
when the airport project was 
first announced, but die latest 
estimate released by the Min- 
istry of Construction and 
Transportation is a final price 
of 5.7 trillion won. . 

Inchon will open just in 
time to meet an explosion in 

world’s most populous urban 
areas — Beijing. Shanghai. 
Hong Kong. Tokyo, Osaka, 
Taipei and Manila. 

Inchon airport will also 
have optimum flight condi- 
tions. according to airport au- 
thorities. Largely unaffected 
by the winter smog and sum- 
mer haze that blankets Seoul 
and environs. Inchon is ex- 
pected to have only about 50 
hours a year with visibility of 
less than 200 meters — the 

South Korea is setting its sights on becoming one of the worlds top 10 aerospace nations by 2000. 

T he South Korean gov- 
ernment has estab- 
lished a nationwide 
objective to be one of the 
world's top 1 0 aerospace na- 
tions by the year 2000, on a 
par with the country's per- 
formance in other industrial 

Although South Korea is 
currently the world's 1 1th 

FAAs absolute minimum for biggest economic power, its 
safe takeoffs and landings, aerospace industry, ranks 


That's about a third of the 
hazardous hours chalked up 
at Kimpo each year. 

Once Inchon is completed, 
it will become Korea's fore- 
most international gateway. 
Kimpo Airport will become 
the capital’s domestic air 
transport hub. offering flights 
to Pusan. Kwangju, Cheju 
Do and other Korean des- 
tinations. J.R.Y. 

South Korea's overall 
aerospace turnover by 2005 
should exceed S 1 0 billion an- 
nually. with over S6.5 billion 
in exports. 

Long-term commitment 

“Most of the growing re- 
quirement for air transport in 
South Korea so far has been 
met through imported air- 
craft. which has been a sig- 
nificant factor in South 
Korea's trade deficit." says 
Thomas D. S. Byun. man- 

which requires, a substantial Samsung’s Aerospace di- 
long-term commitment of vision was established in 
funds before rewards are 1977 by the founder of the 

reaped, are, of course, as 
much strategic as they are 
economic. For this reason. 
South Korea is developing its 
aerospace industries in a co- 

Samsung group, Mr. Lee By- 
ung Chul according to Mr. 

recent development of the? 
South Korean aerospace in- , 
dustry. It is the major partner’ 
— along with Samsung. - 
Korean Air and other Sou*' 

Byun. with “a strong sense of Korean companies — in two 

South Korea is developing its national duty” in mind.- of the country's aerospace.' 
aerospace industries in a co- The financial return has programs: The Korean Fight-; 
operative effort between *e been limited so far, but the er Program (KFP) and the 
government and private in- company believes *at in newly approved KTX-2 pro- 
dustries. . light of Sou* Korea’s SI 0- gram. 

"’Sou* Korea is still facing billion ■* atinual defense The KFP program essen-; 
hostility from North Korea bialget, !*e business potori- riaDy transferred *e technpl- 
and needs strong defense ca- tiai is great. i ogy to develop high-quality; 

somewhere between 20th to Korea's trade deficit" says 
30* in the world. Thomas D. S. Byun. man- 

in 1996, Sou* Korea's aging director' of Samsung 
total aerospace turnover was -Aerospace Industries* Com--, 
around $1.5 billion, in- mercial Aircraft Program, 
volving 43 companies with a Sou* Korea's aerospace 


"'Sou* Korea is still feeing 
hostility from Nor* Korea 
and needs strong defense ca- 
pabilities. as the country is 

aging director 1 of Samsung surrounded byf such_ super- . Tech oofegy. transfer 

powetjta^Rtuai^.Cftina-and al^believes 

Japan." says Mr. Byun. “The *e kno£k-on effects of foe 
Gulf War showed that aerial required technology uper&d- 

volving 43 companies with a Sou* Korea's aerospace Gulf War showed that aenaJ required technology upg 
total of 1 2.000 employees. If trade deficit has been in ex- poweris evermore important. ing ; fori aerospace. devel 

□ ’eels now in the pipeline, cess of $2 billion annually in in modem warfare, and this is ment wjll be beneficial to 
udine *e KTXII fighter recent years. a powerful reason for con- country^ other industries 

program' and the plan to de- South Korea’s objectives tinuous strong investment in / U.S.-fcased hockb 
velop 70-seater commercial in developing *is technol- any nation's -aerospace in- Matin ^Tk^proba 
aircraft, go ahead as planned. 

ogy-intensive industry, dustries." 

a powerful reason for con- 
tinuous strong investment in 
any nation's - aerospace in- 

required technology upgrad- 
ing fori, aerospace, deveffe- 
mentwfll be beneficial totfte 
cpMntryfs other industries: 

■ U.S. -cased Lockheed 

Matin pas played probably 


The KFP program essen-. 
tially transferred the technol- 
ogy to develop high-quality 1 ; 
F-16 fighterplanes under Ii~* 
cense from Lockheed toj 
; Sou* Korean industries in' 
force distinct phases. It Was., 
according to Lockheed, one; 
.of foe most successful in-* 
terriational FI 6 cooperation, 
programs. . . • 

The South Korean govern-., 
ment has also selected Lock- 1 

Passenger Jet Project: New Generation Aircraft Will Serve Regional Markets 

c Special benefit begin to accrue the 

©YNASTY momenl vou c ^ ec ^ m - prQtT1 1 5th. 
£\l T B of our distinguished guess will 

immediate!) become member? of the Shilla 
DvnasA Club. E\ erv niqht you spend with us in our new h 
renovated hotel will be rewarded with credit points that are 
automatically converted to gift certificates. This cash benefit 
allows \ou to purchase a wide range ot products and sen ices 
throughout the hotel. Buv an airline ticks, rent a car. or shop 
dirtv-free. Gifts certificates are also welcome in The Shilla s nine 
international restaurant and bars as well as in all the boutiques 
in the Shilla Arcade. 


South Korea's attempts to build an indigenous 
passenger jet to service regional markets have 
been grounded several times over the past few 
years, but now look set to take off at last A 
memorandum of understanding was signed in 
April between South Korea and AIR — Aero In- 
ternational (Regional) — for the design and pro- 
duction of the AIR70, a new generation short- 
range aircraft and its derivatives, the AIR54 and 
A1R84. AIR is equally owned by British Aerospace 
PLC, Aerospatiale of France and Alenla SpA of 

Public-private sector partnership 
The total development cost of the AIR70 project is 
expected to be a cool $1.2 billion, of which the 
government-backed South Korea Commercial-Air- 
craft Development Consortium, composed of ma- 
jor South Korean aerospace companies, including 
Samsung. Daewoo and Korean Air. has so far 
pledged around 30 to 40 percent. -The govern- 
ment is understood to have committed half of 
these funds. 

■All parties are currently discussing details of 
the cooperation, and we expect the program to be 
launched this year.' says Thomas D. S. Byun. 
managing director of Samsung Aerospace's Com- 
mercial Aircraft Program. 

The first flight of the proposed aircraft is slated 
for 2000, with its entry into service set for 2001. 
AIR is reportedly expecting to sell more than 
1,000 of this type of aircraft, with sales coming 
from all over the world, including the fast-growing 
Asian region. 

“In the past, most aircraft with this smaller 
seating capacity were of the turbo propeller, vari- 
ety, but now there is a demand for a faster and 
more comfortable small aircraft,' says Mr. Byun. 
The A1R70 is expected to carry a price tag of 
around $21 to $22 million, compared with $14 to 
$15 million for a propeller-driven aircraft. 

Greater involvement 

There are still several questions about the project, 
not toe least of which is whether the South Korean 
consortium can deliver a sufficient proportion of 
the investment to convince Aero International that 
the project is viable. 

According to Park Kun Woo. executive director 
of Daewoo Heavy Industries' Commercial 
Aerospace Program. Soirth Korean companies 
can come up with more funds, but they want a 
greater involvement in everything from design to 
production. It is understood that AIR will allow 
South Korea to design and build the aircraft's 
fuselage, but this arrangement does not give 

the most crucial, rote in’ the heed Martin as a' major part- . 

ner in the development of; 
South Korea's first indise- . 
! : nous advanced trainer air-; 

craft, the KTX-2. Samsung. 
iai UlxDi/rrc Aerospace will be the main,’ 

IAL IVIAKHeIo contractor, and Lockheed- 

Martin will provide technical ; 
ed expertise in manufac- assistance and act as a major- 
e systems. subcontractor. 

; its own aircraft may be a The Republic of South; 

uth Itorean aerospace in- Korea will fund 70 percent of! 
tare of the supply of com- [he $2 billion development 1 

itemational companies is costs, with Samsung and ! 

Lockheed Martin providing ; 
aft in the world market will the remaining 30 percent in- 

o our goal is to become a vestment. The initial order of; 

ames to Boeing and Air- 04 aircraft will be produced < 

for the South Korean Air 1 
tastering processes such Force, 

unctional testing. IFT seal- "KTX-2 will be an ex-! 
td theodolite tooling. Dae- tremeJy important program • 
is recognized for its ca- for South Korea's long-term 
g assembly. goal of aerospace self-suf- 

ficiency." says Kim Yong 
Ho. Lockheed Martin's se- , 
's Asians Airlines has ef- nior ' ice president. Not only • 
rf the Daewoo group, the does the expertise that will be 

ater bargaining power with gained cover all aspects of 

in parts contracts. Asiana aerospace technology, in-. 

3oeing aircraft to add to its eluding design, develop-’ 

additional 36 Airbus craft. ■ ment. management and pro- ! 
this will ensure that Dae- duction. but it also provides 
lose companies. the first opportunity for! 

ir. the only airline in the South Korea to sell its own 
aerospace manufacturing indigenous aircraft to the 
vision — located in Pusan world market 

rw.ii, .... .... 
^w:> • • i--?-- , - lh - - ' 


*:• :• ii-. iw * >'W*. *• * 4 


cMi at— c4~* 


After many stops and starts, Soufi Korea looks set to produce its first regional passenger jei. the ABV0; a pmtolype is shorn above. 

South Korea the desired expertise in manufac- 
turing its own aerospace systems. 

While manufacturing its own aircraft may be a 
distant goal for the South Korean aerospace in- 
dustry, increasing its share of the supply of com- 
ponents to the major International companies is 
an immediate one. 

’ Selling our own aircraft in the world market will 
be extremely difficult, so our goal is to become a 
major supplier of air frames to Boeing and Air- 
bus." says Mr. Park 

Having invested in mastering processes such 
as system Integration, functional testing. IFT seal- 
ing, fuel soak testing and theodolite tooling. Dae- 
woo Heavy industries is recognized for its ca- 
pability in complete wing assembly. 

Bargaining power 

Now that South Korea's Asiana Airlines has ef- 
fectively become part of the Daewoo group, the 
company has much greater bargaining power with 
Boeing and Airbus to win parts contracts. Asiana 
is ordering a further 15 Boeing aircraft to add to its 
fleet of 42 as well as an additional 36 Airbus craft. 
According to Mr. Park, this will ensure that Dae- 
woo gets orders from those companies. 

Likewise, Korean Air. the only airline in the 
worid to operate its own aerospace manufacturing 
division — located in Pusan 
— already supplies wing tip 
extensions and flap track 
fairings for the Boeing 747, 
flap support fairings and 
wing tip assemblies for the 
Boeing 777 and forward up- 
per shells and central upper 
shells for the Airbus A330 ■ 
and A340. Its ambition, 
however, like those of 
South Korea's other 
aerospace industries, is to 
supply more value-added 

This has important stra- 
tegic benefits for both the 
supplier of the aircraft and 
the supplier of the parts, 
says Korean Air's vice pres- 
Went, aerospace division, 
Suh Sang Mook. 

“If, for instance. Airbus 
allows South Korea to man- 
ufacture a larger proportion 
of the planes they sell to us. 
it Is only natural that we Will 
.buy from them'; because 
there Is more benefit to our 
own industry," says Mr. 

. . . Suh. 

type is shown above p H 


Mr. Kim is confident that 
South Korea can succeed in 
aerospace, but with two pro- 

“They need to be patient." 
he says, "as ir will take a 
tremendous investment in 
the initial stages, whereas 
tangible payoff* will not he 
realized until much later." 

He also argues the need tor 
conti rfuity in investment. 
“Discontinuity in { |te 
aerospace business % [\\ 
waste much of the resources 
that Sou* Korea has inves- 
ted in facilities, trained man- 
power and acquired techn.»l- 

The government, he he- 
lieves. must pledge its co m - 
mitrnent tn terms of fimdin-- 
tor the long term. If the \n 
dustry is to succeed, he saw 
"aerospace should be con- 
sistently m d " ' 


I u 9 

$ Se&i&S 




PAGE 25 


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PAGE 26 



f . iv 

.•*?- «- /x. 

W~' mt 1 

The Chaebols: The Maturing of a National Asset 

For good or for ill. the South Korean 
economy is dominated by the existence 
of a handfol of large conglomerates, or 
chaebols, that engage in almost every 
form of major business activity. Three 
companies alone — Daewoo. Hyundai 
and Samsung — are estimated to account 
for up to 70 percent of the South Korean 

Walk the streets of Seoul and see how 
far you can go without being confronted 
by a neon sign for a product or service of 
Daewoo. Hyundai or Samsung. Average 
South Koreans might well 
buy not only their TV sets. Jhegovm 

microwaves and refriger- 
ators from Daewoo, but sookmgt 

also their cars, their apart- tmvlm 

ments and even their life " envir “ 

insurance policies. which fab 

The advantages of mtwttg f eu 

these companies are clear 
in the context of global- meeffum* 

ization. Brands like Sam- 
sung. Daewoo and Hy- onterpns, 

undai have made South domestic 

Korea a major economic n 

force to be reckoned with 
across the globe. The fate 
of giants like Hanbo and Kia. on the other 
hand, shows the disadvantages of con- 
centrating too much power in the hands 
of companies with inefficient and out- 
dated management structures. 

In die early days of the South Korean 
economic miracle, the military govern- 
ment encouraged the exponential growth 
of conglomerates as a means of directing 
scarce resources to building up the man- 
ufacturing sector. Today, the government 
is more ambivalent about these industrial 
behemoths and the power they have over 
the economy. 

"Conglomerate-oriented economic 
de\ clopment has led to the concentration 
of economic power and subtracted from 
our economic flexibility." says the deputy 
prime minister and minister of finance 
and economy. Kang Kyong Shik- "There- 
fore. the government is trying to dis- 
courage the concentration of economic 
pow er limited to a selected group of large 
conglomerates and establish an envir- 
onment in which an order of fair com- 
petition among large and medium-sized 
enterprises is firmly set in place" 

The chaebols themselves believe that 
their role in Korea's economic devel- 
opment makes them indispensable in the 
dnve toward globalization. "Large 
companies like Samsung are the only 
national asset allowing Korea to compete 
in the world." says Park Ung Suh. pres- 

ident of the Samsung Economic Re- 
search Institute. 

“The real objection is more political 
than economic because there is a mis- 
perception that the entire companies are 
owned by their chairmen,'’ says Mr. Park. 
"In feet, they are not” Government 
would, he argues, do better to regulate 
ownership of companies and set up more 
independent monitoring agencies, rather 
than trying to restrict their activities, 
which adversely affects national com- 
petitiveness. Mr. Park cites the example 
of PC board production. 
_ South Korean congiom- 

77w government is erates m not flowed t0 

seeking to establish participate in this in- 

. dustry because it is re- 

an environment In served for small and me- 

wtrich fair competition di urn -sized companies, 

.. . . which supply the boards 

among Huge and » the clSbil*. 

medium-sized "But these small 

companies do not have 
enterprises bom sufficient funds for re- 

domestic and foreign search and development 

. _ .... and to achieve economies 

—is firmly in place 0 f scaJe ;- says Mr. Park. 

"The result is that we are 
1 5 years behind Taiwan in this field.” 

As the economy is restructured and 
regulated to allow fairer competition for 
both domestic and foreign firms, it is 
likely that the chaebols may be able to 
grab an even larger slice of the South 
Korean economy. 

For instance, conglomerates are cur- 
rently not allowed to own banks because 
the gov em merit is worried that they could 
monopolize the loanable funds from a 
bank once they are allowed bank own- 

The liberalization of the financial in- 
dustry, however, will allow foreign banks 
to set up branches in Korea, making it 
almost impossible to justify 1 excluding 
South Korean companies, especially 
when they have the financial resources to 
simply buy the entire foreign bank in 

"There are both strengths and weak- 
nesses to the chaebol system." says 
N'amuh Rhee. Dongbang Peregrine se- 
curities director. "Yes. they do concen- 
trate economic power and do not always 
make for the most efficient allocation of 
resources. But for a nation of 44 million 
people to reach global competitiveness so 
quickly in such capital intensive indus- 
tries. you need economies of scale. With- 
out these chaebols, we may not have been 
able to do it" 


Local Needs 

Foreign companies are breaking into the market. 

S outh Korea has gener- 
ally been deemed one 
of the hardest econo- 
mies in Asia for foreign 
companies to penetrate. 
Nonetheless, the country is 
home to a number of mul- 
tinational corporations that 
have managed- to succeed in 
the South Korean market de- 
spite traditional constraints. 

These foreign companies 
generally meet with success 
when they adapt their 
products and services to 
South Korean needs and learn 
about South Korean business 
practices through joint ven- 
ture agreements with local 
partners who have already 
built up a strong local pres- 

These South Korean part- 
ners are sometimes from the 
private sector but are often 
government entities. 

Key center 

In the early 1970s, the only 
Xerox operations on the pen- 
insula were on U.S. military 
bases. But an astute local 
businessman named Moon 
Byong Hyuk anticipated that 
office automation would 
grow' rapidly as the Korean 
economy boomed, and he ap- 
proached the Connecticut- 
based company to form a 
joint venture. Korea Xerox, 
as it's now called, was cre- 
ated in 1974. 

“Even though the parent 
company is American, we 
are pretty much a Korean 
company.” says Moon Yong 
Joon. vice president of Korea 
Xerox. "We pretty much op- 
erate by Korean standards. ” 
Throughout the 1970s and 
'80s. the company focused 
on the integration of Xerox 
products and machines into 
the Korean market. This in- 
cluded sales and a rental sys- 
tem as well as the develop- 

ment of Korea's marketing 
tools and customer service 
operations. Employees were 
sent to Japan for staff training 
courses at Fuji Xerox. 

Increasingly. Korea Xerox 
has turned its energy to de- 
veloping its own products 
and parts with an eye on both 
foe domestic market and ex- 
ports to other Asian markets 
under the Xerox brand name. 
At present about 70 percent 
of parts are fabricated loc- 

Product development 
Last year, Korea Xerox rev- g 
enueshit$258 million, a 12.5 ~ 
percent rise over 1995. Six- 
teen percent of revenue was _ 
derived from exports. The 
company’s share of the South 
Korean photocopier market 
was 27 percent compared 
with 36.5 percent for Ricoh 
and 25.6 percent for Canon. 

“We are investing about 5 
percent of our revenue in re- 
search and development” 
says Mr. Moon. "Our goal is 
developing our own manu- 
facturing capability and ex- 
porting our own models, es- 
pecially in the low-end 
copier area. 

"Beginning in 1999. 
Korea Xerox will be recog- 
nized as a real manufacturing 
base of the Asia-Pacific di- 
vision- especially in low-end 
copiers. In the future, we will 
be one of foe key centers of 
the Xerox Group.” Among 
the markers targeted for 
Korea Xerox exports are 
Taiwan. Thailand. Indonesia 
and the Philippines. 

Mr. Moon feels the joint 
venture has succeeded be- 
cause of mutual understand- 
ing and cooperation betw een 
the two partners as well as a 
willingness to transfer tech- 
nology on foe part of the par- 
ent company. 

f( # KiX 

Korea Xerox has successfully adapted its business practices and products to the South Korean market 

"Those are foe key factors 
in making a successful op- 
eration in South Korea,” he 

On the fast track 
Another multinational on foe 
fast track in South Korea is 
Lockheed Martin, foe Amer- 
ican aerospace conglomer- 
ate. which has grown through 
mergers and acquisitions co 
include Lockheed, Martin 
Marietta, General Dynamics, 
Loral and other aviation 

The company has been on 
foe ground in South Korea 
since 1971. when General 
Dynamics established on of- 
fice to support foe purchase 
of F-l 6 fighters by foe South 
Korean Au Force. 

Lockheed kicked off its 
South Korea operation in 
I9S8 with an office to handle 
foe sale of C-130 transports 
and P-3C maritime surveil- 
lance aircraft. Martin came 
asho re in 1992 to support its 
LANTERN navigation sys- 

“Korea has been and will 
remain one of the most valu- 
able customers of foe Lock- 
heed Martin corporation." 
says Kim Yong Ho. senior 
vice president of Lockheed 
Martin. “Over the last six or 
seven years especially, our 
success in Korea has been 

Long-term partnership 
Lockheed Martin is currently 
involved in South Korea's 
most important aerospace 
manufacturing ventures. The 
Korea Fighter Program, 
which will produce F-l 6 
fighters in Soirth Korea, is die 
country's first licensed air- 
craft manufacturing project. 

The K.TX-2 program aims 
to develop South Korea's first 
indigenous fighter trainer, 
with Lockheed Martin 
providing technical support 
and serving as a major sub- 
contractor and Samsung as 
foe primary contractor. 

Lockheed Martin has also 
ventured into the South 
Korean satellite sector with 

the launch of two telecom- 
munications birds (KoreaSat 
One and Two) and a contract 
for a third that will be 
launched in 1999. 

■~l believe the most sig- 
nificant factor fn our success 
in Korea is the fact that we 
approach this as a long-term 
partnership with foe Korean, 
military and industry, not just 
a one-off project" says Mr. 
Kim. "We have a solid rom- 
mitment far the long term."' 

But there arc other factors, 
he say's. Lockheed Martin 
has the right products, for 
South Korea's needs — not 
just airplanes but also .nav- 
igation aids, satellites and in- 
formation management sys- 

The company also puts 
considerable energy into cus- 
tomizing products to fit foe 
Korean market. 

"We understand the 
Koreans.” says Mr: Kim. 
"We develop programs best 
suited for their needs, their 
national goals and priorit- 
ies.” j-ity. 

September 10th & 11th 1997, Seoul, Korea 

Summit Hosts 


Summit Sponsor 


Suegaeivha. meaning ■ globalization.” is the ongoing process of reform which promises to transform Korea's 
business landscape. The International Herald Tribune, with the cooperation of The Ministry of Finance and 
Economy, has organized an event which will allow you to meet Korea's domestic business leaders, heads of 
prominent mufli-naiionais such as Peregrine Investments Holdings Limited. Korea's top government officials and 
many more. By bringing business and Government together the IHT offers you the opportunity to meet those who 
will influence your business in Korea. 

Confirmed Speakers Include: 

President Kim Young Sam 

Kang Kyong Shik, Deputy PM 

Yon Chung Ha. Minister of Foreign Affairs 

Lim Chang 'I'ueL Minister of Trade. Industry & Energy 

You Jong Keun. Governor. CboDabuk-do Province 

Lee Hwun Kyiin, Minister of Construction & Transportation 

Kenichi Ohmae. Global Business Strategist 

Park Ung Suh, Preskteni, Samsung Economic Research Inst 
Kim Woo Cboong, Chairman, Daewoo Group 
Chung Mong Koo, Chairman, Hyundai Group 
Philip Tose, Chairman, Peregrine Investments 
Donald Johnston, Secretary General, OECD 
IRkur Sultanov, PM, Republic of Uzbekistan 
Alvin Toflkr, Futurist USA 

Deputy Prime Minister Ac Minister of Finance & Economy. Kang Kyong Shik will open Day J of the Plenary 
sessions and host the Dinner Banquet on ihc evening of September 1 0th. open to all registered delegates. 

To register for what promises to be an exciting and unique event please contact Lesley Varlinden at the International 
Herald Tribune. Hong Kong, on tel: 852 2922 1 107 or fax: 852 2922 1 100 / S52 2922 1190. 

Corporate Sponsors 


Official Card 


Organized by 



Official Hotel 


Telecoms Sector: Ringing in the New 

Dei-egulation and ciuting-edge technology drive the telecommunications indusny. 

O ne of the most compelling pager sen ice. with 6.5 million sub- lion by 2001. predicts the Ministry 
proofs that the South Korean scribers (out of a nationwide total of 12 Information and Communication. . 
government is serious about million) by foe end of last year. South Korea is generally regarded 

O ne of the most compelling 
proofs that the South Korean 
government is serious about 
economic deregulation and liberaliz- 
ation can be found in the telecommu- 
nications sector, which bears little re- 
semblance to the industry' rhat existed a 
decade ago. 

South Korea is now one of Asia’s 
most emancipated telecom markets. 
Recognition of that achievement came 
in July when the U.S. Trade Repre- 
sentative i USTR ) announced that South 
Korea would be removed from the list 
of priority foreign countries ( PFC ) that 
need to end trade restrictions in the 
telecoms sector under the U.S. Om- 
nibus Trade Competitiveness Act 

Investors welcome 
"The Republic of Korea has made 
measurable progress toward foe elim- 
ination of objectionable acts, policies or 
practices” in the telecoms sector, the 
USTR declared in making the an- 
nouncement. The U.S. decree came in 
the wake of Seoul's pledge to honor the 
Information Technology Agreement 
(ITA). which calls for the gradual elim- 
ination of tariffs on information tech- 
nology products and a decrease in lim- 
itations on foreign ownership of 
domestic telecoms services companies. 
South Korea has also agreed to employ 
more transparent and competitive reg- 
ulatory policies. One of the clinchers 
was an announcement by the Ministry 
of Information and Communication last 
November that foreign companies will 
be able to hold more than 20 percent of 
domestic telephone operations starting 
in 1998. 

“These kind of announcements are 
very satisfying for us,” says Kim Ji 
Hoon. general manager of the Overseas 
Business Planning Team at SK Tele- 
com. the telecommunications arm of 
the Sunkyong Group. “The U.S. gov- 
ernment was not satisfied with what the 
South Korean government did after 
WTO, but these latest moves are a very 
clear signal that there will now be less 
government involvement in the tele- 
coms market” 

j 20 million subscribers 
The telecom service sector is dominated 
by four big domestic operators. Korea 
Telecom and Dacom control the lion's 
share of foe conventional, fixed-line 
phone market, which hit a record 20 
million subscribers in May this year 
{double 198S's figure). 

SK Telecom and Shinsegi Telecom 
compete in the mobile sector. 3 million 
subscribers strong by foe end of 1996. 
SK Telecom has roughly 3.2 million 
analog and digital users, and Shinsegi 
has nearly 300.000 digital users. SK 
Telecom is also the country's largest J 

pager service, with 6.5 million sub- 
scribers (out of a nationwide total of 12 
million) by foe end of last year. 

Korea telecom, which once had a 
monopoly on all telecom services, is 
gradually being privatized. Private 
shareholders already control more than 
20 percent of foe giant company, wirh 
foe percentage set to rise substantially 
once the company gains listing on the 
Seoul stock exchange later this year. 
The government has also floated the 
idea of issuing overseas depository 
notes and a Wall Street listing. 

Mobile services 

Not to be outdone by domestic mobile 
operators, Korea Telecom recently in- 
troduced a new satellite-based mobile 
phone service for global voice and data 
transmission. The company is also ex- 
panding overseas. In August it became 
part of a consortium of 28 companies 
that will develop Atlantis 2 — 1 1.000 
kilometers of optical fiber cable linking 
Portugal, Spain. Senegal. Brazil and 
Argentina. Like many Asian nations. 
South Korea's mobile sector is expected 
to grow by leaps and bounds oxer the 
next decade. The number of cellular 
subscribers doubled (to 3 million) be- 
tween 1995 and last year, with pro- 
jections that the total number of cus- 
tomers will nearly double again (to 5.0 
million) by the end of this year. 

With the introduction of PCS (per- 
sonal communication services ) and oth- 
er new mobile services later this year, 
the subscriber base could reach 13 mil- 

lion by 2W1. predicts the Ministry of 
Information and Communication. . y 
South Korea is generally regarded as 
one of the worlds front-runners in the 
commercialization of a new mobile 
phone technology. In the early i 990s. the 
government decided to adopt Code Di- 
vision Multiple Access (CDMA) tech- 
nology as the basis for its cellular phone 
networks. CDMA systems — first de- 
\ eloped by Qualcomm in the Umted ^ 

Slates — provide better quality trans- ~ j 
mission and are able to handle 10 times 
more users than standard TDMA (time j 
di\ ision multiple access) systems. ‘ j 


Cutting edge i 

SK Telecom, which became the first j 

company in the world to launch coni- j 
mercial CDMA service in 1 996. is hop- j 
ing to parlay ils expertise into major 
overseas sales in the future. * I 

"We are hoping to export CDMA j 
systems to Russia, China and Southeast I 
Asia.” says Mr. Kim. "If you look at | 
underdex eloped countries, there aren't ; 

many land line sen ices, so this mobile [ 
sen ice is really the best solution. And , | 

they're going ro go for CDMA ovei^r . 
GSM technology because when yotr ' ' 1 

invest that kind of money you want a 
more long-term solution.' 

Other manufacturers hoping to take 
advantage of South Korea’s lead in this J 

technology include Hyundai Eiecrron- ; r 

ics. Samsung Electronics, and LG In- ; ?■ 

formation and Communications, which 
ha\c started exporting CDMA equip- 1 • 

ment. J.R.Y. f 

SWiffi Kme b horn to the muffs first two commercial CDMA mobile phone 


‘ i 


PAGE 27 


_ 1. 1: i 









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1 _ 

bo ■ 

: ■’ 


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i i 



1 1 

jfOREiGN Retail Sector Joins the Club 

trade barriers lowered, international discount and luxury chains are flocking to enter the market. 

mm ■ 


O rS5 e k* ^ * e South Korean government 
lifted bairiere to foreign participation in the retail 
sector, and many of the world's leading chains are 
scrambling to enter the market 
5* really look at 1993 as the year that things began to 
^change very fast in Korea." says Tami Overby, executive 
jjpirector ofthe American Chamber of Commerce (AmCham) 
South Korea. “President Kim came tack from the APEC 
jjpummit in Seattle and realized that Korea needed to open up 
* 5 >r it Would miss out on globalization. 

Sf “South Korea's entry into the OECD last year was another 
Sgreai catalyst for the market opening up, giving foreign 
, ^companies die opportunity to provide more" products and 
■' ifervices at more competitive prices. " 

Sptobal chains 

^Among die global chains that are already established or will 
jg?oon have outlets in South Korea are Thrifty and Price Club 
Jpf the United States, Carrefour and Printemps of France. 


,. 4 *r **, 

- It 

The Nasan Group 's 8 key player bi 
retail, construction and tourism. 

Price Club, which is called Kim’s Club after the South 
^Korean partner, opened its first outlet in Seoul last year. 
» Following initial success, tbe chain bunched a second store 
»in the southern city of Taegu in July. Seven- 1 1 convenience 
^Stores, one of die first overseas players in the local market, 
*now has 1 10 outlets in South Korea. 
y. “What you find is that most of these operations are joint 
ventures with heavy South Korean equity,” says Kevin E. 
Honan, counselor for economic affairs at the U.S. Embassy 
‘ m Seoul. 

" Japanese department stores and retail outlets, which have 
'■spread rapidly across the Far East over the last decade, are 

- noticeably absent in 

South Korea. Ana- “ ! 

■lysts sav this is prob- * _ 

'ably due to South . 

- Korea’s traditional an- I te sasB Bji : uS$fv. 

^Imosity toward Japa- | j 

count chain, is eager j; 

to enter the Korean ji • 

• market but is currently 

“A Korean woman The NasmGnxp is a key player m 

- holds the rights to the retail construction and tourism. 
‘Wal-Mart’ name 

" here.” says Ms. Overby, ”At one point she was close to 
selling, and then she decided to be patriotic — protect Korean 
"'retailing by keeping the giant Wal-Mart out " 

' ' Even without Wal-Mart in the market analysts predict that 
"deep-discount chains will double their revenues this year 
over 1996. 

' 1 Foreign brand names are also more evident in Korean 
’department stores and supermarkets. “Distribution in South 

* 'Korea has changed drastically," says Ms. Overby. 

1 Kodak. Amway. Coca-Cola, Procter and Gamble and R J. 
■Reynolds are among the American firms that have made 
headway in South Korea over the past tew years. 

The import of foreign consumer goods continues to es- 
calate, with cosmetics, cellular phones, alcoholic beverages, 
canned food goods, garments and electronic appliances 
leading the way. Foreign apparel sales reached $1.- 4- billion 
last year. Cosmetic imports are expected to top $330 million 
in 1997. Overall sales of consumer goods could surpass $14 
billion this year. 

A leading South Korean fashion company, Nasan Co.. Ltd. 

’■ — a subsidiary of the Nasan Group — has concluded a 
licensing agreement to market the French brand Votre Norn 
in Korea. Nasan is also involved in retail through its Nasan 
-Department Store Co. Its flagship store in the Kangnam 
' district of Seoul offers discount prices throughout the year. 

Business is also booming for foreign retail outlets that 
hawk luxury or specialized goods. 

In the year 2010, a typical Bvkig room may look Hke this. 

i ’Future Homes 

it !. 

* i New technology' and materials will rewhitionize 
c. y the i«rr we live. 
r * l ' 

-T“l uturisric homes that By the year 2005. For m- 
|H combine space-age stance, a young professional 
- I design with intelligent couple might live in a studio 
’multimedia functions "are apartment complete with 
' generally the stuff of science multimedia system and a 
Fiction. But Sou* Korean workstation where they 
‘ companies are making great could watch TV. access die 
‘ strides in construction tech- Internet, see the people they 

• fiology, and many, including are talking to on the phone 
Hyundai and Ssangyong. and have videoconferences 

_ have built world-class repu- with the office. 

■ rations for innovation in con- By the year 2010. on die 

struction materials. other hand, three generations 

Those who are fascinated might live together in a high- 

■ bv homes ofthe future now tech environment that none- 
have a chance to make the theless blends the past 

; fontasy a realitv at Daewoo’s present and future for the 
X 1 ' "Human Space," a 2310 comfort and convenience of 
square meter permanent ex- all generations. Features in- 

■ hibiuon located in the Sev- elude a big-screen multi me- 
erance Budding Lobby, dia station and a house dia- 

' Chunggu. Seoul that demon- gnostics system, which, for 

• strateshow new technology instance, can be consulted for 

'and materials will revolu- temperature or blood-prcs- 
*tionize the way people live in sure readings. Intelligent 
:, the future controls will also, for ex- 

Drawing on advanced ample, run bath water to a 
; technologies that Daewoo desired temperature at a pre- 
r-Construction can already set time. 

-employ through its Zero 21 By the year 20^0. thever- 
» Intelligent Buildings pro- satile house has a space-are 
; t he Human Space ex- look, symmetrical design and 
hibition showcases homes facilities like an “air wash 
^ for foe future, from the year system to replace conven- 

XX)0 to 2050. What they nonal showering. By 2050, 
I have in common is the op- compact. 

: timization ofthe use of space ing allow* foe inhabitant^ 

• and the integration of rntcl- control foe entire environ 
'■ ligent multimedia functions, ment. 

temperature or blood-prcs- 
stire readings. Intelligent 
controls will also, for ex- 
ample, run bath water to a 

compact, capsule-style hous- 
ing allows foe inhabitant to 
control foe entire environ- 

The latest entry in the luxury market is Italian fashion 
house Prada, which unveiled its first South Korean boutique 
in July, a splashy store in foe trendy Chongdam-dong district 
of southern Seoul. A second Prada outlet is planned for foe 
Galleria shopping mall in Apkujong-dong by foe end of 
1 997. Both stores will dispense foe full Prada line, including 
travel bags, shoes, lingerie and ready- to-wear for men and 

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Premium prices 

It seems that South Korean consumers are not averse to 
paying premium prices for imported luxury goods. A recent 
survey by foe Korean Federation of Textile Industries found 
that average prices of 14 foreign brand names were 26 
percent higher in Seoul than the same garments in Paris. 

Milan and New York. Meanwhile, imported brand name 
formal wear and casual shirts were five times more expensive 
in Seoul than the other three cities. 

Nike. Reebok and Adidas sportswear boutiques are also 
going great guns in Seoul, a drastic turnaround from several 
years ago, when Korean street markets were rife with 
counterfeit brand-name sports shoes. o 

“The Koreans have finally realized that IPR [intellectual I 
property rights] is important here," says one analyst “That’s | 
because foe Chinese were stealing them blind in some areas, g 
and they wanted to protect their own IPR.’’ a 

“The concern now is not so much market access," says | 

Ms. Overby, “but issues like consumer bias against foreign . ... . . . 

products and transparent non-tariff barriers.” J.R.Y. South Koreans are great buyers of consumer goods. They appreciate (Sscounts, but are wfl&ig to pay higher pnees tot luxury asms. 


' ' * v. v 

’ ,*w v “ • »• . 

Setting goals that seem 

It’s this spirit that took us from a small 

unreachable might sound like 

a silly idea, but at Sunkyong, it's 

one we can't imagine doing 

without. In fact, it's a 

management style that 

we've worked in to a 

science. And last 

year, it helped us 

become a 33 billion dollar 

global company. 

Now the idea may seem new, 

but what’s behind it isn't. And 

that’s people. For us, the key to 

success is people first, people 

When y ou 

textile company in the early 

make it into 
a plane 
and aim for 
the moon. 

fifties, to one of the 

world's few vertically 

integrated companies 

today. We're a global 

producer of petroleum- 

based products and 

polyester films, as well as 

a telecommunications 

leader and global 

trading company. And 

that’s just the beginning. 

With our people, we can 

help you and your company 

second, people third. Our people are 

committed to a pursuit of excellence 

beyond excellence. For us, giving 

a hundred and ten percent is an off day. 

achieve goals that seemed out of 

reach before. And together, if we work 

hard enough and aim high enough, who 

knows where we might land. 

That’s uihat m do. 



Sunkyong Limited • Yukong Limited • Sunkyong Industries • SKC • Sunkyong Engineering & Construction 

up D 







Discover Exotic Delicacies and Temple Cuisine 

Healthy and delicious Korean food appeals to gourmets and dieters alike . 

W hile Thai. Chinese and Japanese res- 
taurants are all the rage the world over. 
Korean food is probably one of the least- 
known and least appreciated of the Asian cuisines 
outside of its own country. That is a shame, 
because it is both tasty and healthy. 

Even those who know nothing else about 
Korean food have almost certainly heard ot kirn- 
chee. the hot and sour fermented vegetable that 
seems to be an absolute “must" at every meal. 
Love it or hate it — and kimchee is something of 
an acquired taste — you certainly can t ignore it on 

a trip to Korea. The most famous kimchee uses a 
kind of Chinese cabbage, but it can be made using 
ail kinds of vegetables, includi ng cucumber, radish 
or ginseng peel. 

Although there are many varieties — Seoul’s 
kimchee museum classifies no less than 1 00.000 - 
the basic taste of each is derived from salt and 
lactic acid produced by the fermentation of such 
vegetables and spices as chili peppers, garlic, 
ginger and green onion. Sometime pickled fish or 
fresh seafood is also added. 

Since the Seoul Olympics in 19S8. there has 
been a steadily increasing international interest in 
this Korean staple, with exports rising by more 
than a quarter annually. Over 13,000 metric tons 
worth more than $50 million were exported last 

different varieties of kimchee. Diners sit on the 
Korean ondol floor, which is heated during the 
winter, and while the endless array of fresh, tasty 
dishes arrives, colorful Korean dances and music 
are performed. 

The best way to sample the range of delicacies 
on offer is to order the full table d'hote dinner, 
which includes around 20 bowls of food. You 
should also sample some ehortgjong. a mildly 
potent milk-textured rice wine drunk from a bowl 
rather than a glass. 

Korean barbecue and Buddha's delight 

Besides kimchee. pulgogi or Korean barbecue, is 
probably the best-known Korean fare, and cer- 
tainly the one that appeals most readily to foreign 
palates. Strips of meat and seafood are marinated 
and charcoal-grilled and then served, like all 
Korean meals, with numerous small bowls of 
vegetable side dishes called punch 'un. These are 
often plentiful enough to be a meal in them- 

A regional delicacy from the south, bibimbap. is 
a stir-it-yourself fried rice dish, served in a heated 
bowl with rice and numerous ingredients that are 
pounded together over the charcoal heat to form a 
delicious concoction. 

Because of the traditional concentration on 
vegetables in Korean cuisine, some of the most 
interesting and atmospheric traditional Korean 
• restaurants serve vegetarian dishes based on 
j temple cuisine. Of particular note is Sanch’on. run 
J by a former Buddhist monk, Kim Yong Shik, in the 
artistic Insa-dong district of Seoul. 

"j Entering the restaurant is almost like entering a 
i temple: You take off your shoes and walk down a 
Korearhstyie Table cTHdte dishes are traditional favorites, courtyard lined with huge ceramic jars containing 

Tradition and innovation 

Choi Nan Wha. the executive chef of The Shilla 
Hotels femed Sorabol restaurant, has been with 
the hotel since it opened in 1 978 and is frequently 
asked to cater state banquets at the Blue House, the 
South Korean presidential residence. 

Her specialties are Korean-style Royal Table 
d’Hote dishes, which she learned ro make at foe 0 
prestigious National Institute of Royal Korean | 
Cuisine over 20 years ago. These include Ku JeoIQ 
Pun. an assortment of nine different vegetables jg 
served .with pancake rolls — a kind of Korean | 
fajita — and Shin Sul Ro. a meat and vegetable | 
casserole. Although these dishes date back cen- s 
tunes, to the Shilla Dynasty, no details of the 
recipes were recorded until the turn of the century, 
at the end of the Chosun dynasty. . 

“Korea is a traditionally agricultural country, so 
Koreans have always preferred more vegetables in 
their diet." says Ms. Choi. “Meats were imported 
from overseas comparatively recently." 

The secret of Korean food is the seasoning — 
the amount of garlic, soy sauce and chili pastes. 
Ms. Choi has noticed that since she began working 
the catering industry-, Korean's tastes have 


In 1996, LG invested over USS9 billion to grow its business. 

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We put people first. 

Chan-Su Tu lias created something unhcIiovaMc. 

Imagine a device that eomlunes tire lunc lion> o: a coinpul vr, a fax ;nac!;ir.o. a nivJcm. a nvl» Nr, -or, an cL-cironic orcanircr and 
mure— so small it nsts c»»mfurtal'lv in the palm of your hand. 

^ Clian-Fu lilses mo?t ahoul LCi EL'ctrouic' new Handheld PC ir the irectinr.i it Cive.- ' • Ui to MurL; ln*» and where you liLe. 
Freed i'm from the expense and incomenience of the Ions! line ui machine? it replace?. 

I.U.- other mam technological!) -ruphiXicaled prod net? include one-time pmerammahie in uro«.on; roller im;lr i;k! digital inohile 
telecommunication system?. Everything we make exist? because we lister, to you. 

Now, hov« can we help you.’ 5u£j< 


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The elegant lobby of the Shilla Hotel to SeouL Os 500 rooms feature fax machines and toteniet access.^ 

The Art of Hospitality 

Hotels offer w orld-class elegance and state-of-the-art services. 

fter a slow start compared with some 
of its .Asian neighbors. South Korea 

moderated. Some no longer like it hoL 

“Wc used to like everything extremely hot and 
very salty — but now everyone is more health- 
conscious. so they prefer milder flavors.” People 
also prefer individual portions of each dish over 
larger portions shared by all diners. P.H. 

http:* 'vhih. 


1 1 is quickly gaining a reputation for the 

quality — and quirkiness — of its luxurious 
five-star hotels. There' are more than 60 
deluxe hotels at present some of them man- 
aged by the world’s top accommodation 
companies, including Hilton, Hyatt. Holiday 
Inn. Sheraton. Westin. SofiteL NovoteL. Inter- 
Continental and Ritz-Carlton. 

But the country's most prestigious hotel is 
actually homegrown — foe Hotel Shilla in 
Seoul. It epitomizes the finer points of 
Korean architecture and hospitality. 

Named after an ancient Korean dynasty 
(57 B.C. to A.D. 935). the Shilla rises like a 
red-brick castle above Namsan Park in cen- 
tral Seoul. The design reflects both modem 
touches and typical Korean motifs like wa- 
dang relief patterns and green-tiled roots. 

develop hotels in Western Europe, Southeast 
Asia and the United States (Ne>v York an^ 
Los Angeles). \ ~ . T 

“We will also develop a chain. of middle 
market hotels in Korea.” says Mr. Lefi/TV 
demand for mid-priced hotels is much jjjreat-- 
er than foe demand for deluxe accomrtjo^ 2 
dation. and we would like to help fill thargap. 

I can’t give you concrete timing, b ut : We ’If 
start in two to three years.” ' 

South 1 

Business and leisure 

Hilton Group also operates two 

Korean properties: the 700-room Seoul 
Hilton in foe capital and the Kyohgju Hflfori 
in the historic city of Kyongju in southeast 1 - 

The Seoul Hilton, which' recently under* 
went a $40 million renovation, has beerf a 
favorite of visiting businessmen for many? 

The guest wing contains 500 elegant, com- years. Its stunning lobby. with a three-stQryJ 
fortable and extremely practical rooms, es- atrium with bronze pillars and Italian 
pecially rooms on the executive floors, which marble fountain, is the most spectacular i^ 
feature personal fox machines and Internet Korea. 



A tradition of luxury 
Adjacent to the main building is the historic 
Yeong Bin Gwan. one of the most beautiful 
structures in Korea. Formerly a state guest 
house where more than 40 heads of state have 
slept, the temple-like “big house” now con- 
tains the Shilla s banquet rooms. 

“Wc try to provide a typical Korean at- 
mosphere’in architecture and custom." says 
Shilla s general manager and vice president. 

Amenities include French, Japanese; Italic 
an. Chinese, Korean arid American restaur-) 
ants, as well as an English-style pub called 
the Oak Room and a nightclub. Pharaohs? 
which- is -currently a- favorite with- Scouk's- 

young, wealthy late-night crowd. ~ 

foul! find at this hotel, as well as at! 

many of the top properties in Seoul.^atge 
percentage offoe food andbeverage bu^ess 
comes from locals,” says John Pelling. ex- 
ecutive assistant manager of the Hilton” - 

‘A lot of Korean businessmen eriterjain in 1 

Lee Young-n. "I would say our strong points-' this hotel and Korean guests often prri^pm- ' 
are service, security and the beauty of the inate at our fine-dming establishments.” 

hotel and its surrounding gardens.' 

Shilla > second hotel is situated on Cheju 
Island off the southern tip of foe Korean 
Peninsula. Touted as the country's “first five- 
star resort hotel.” the Shilla Cheju takes 
advantage of the island's long-time standing 
as a honeymoon haven and growing repu- 
tation as the golf mecca of North Asia. Cheju 
already has five gol f courses, with another 16 
in the works. 

More expansion is in the cards for the 
future. Under the auspices of Samsung, its 
parent company. Shilla recently purchased a 
Norwegian cruise ship that will eventually 
ply routes in the Far East. 

Shilla is developing a 200-300 room hotel 
in Warsaw adjacent to Samsung's East Euro- 
pean headquarters and recently entered into a 
joint venture with Four Seasons to develop a 
luxury resort hotel in Saipan. Looking even 
further into the future. Shilla would Tike to 

Like many local hotels, the Seoul Hilton is i 
trying to increase its percentage of leisure) 
travelers by actively promoting itself over - 1 
seas, either in conjunction with the Korea) 
National Tourism Organization or other' 
Hilton properties. , J 

The Hilton recently dispatched a culinary 1 
team to India, whef&j:hefi; prepared typical \ 
Korean dishes for dinars at foe New Delhi * 

Hilton. “Korean Arr instigated this particular i 
promotion," says Mr. PelTirig. “'They wanted J 

»y .■—i 

to commemorate a new service between 
Seoul and New Delhi with a Korean festival, j 
and they invited us to join.” . . 1 

Another of Seoul's more distinctive hotels \ 
is the Sheraton Walker Hill. Located in the » 

forested riverside setting on the outskirts of \ 

the capital, the hotel features a full-fledged 1 
casino and a Las Vegas-stylc floor show. The I 
Sheraton also stages traditional Korean song j 
and dance performances. J.R.Y. I 

Travel Tips for Business and Leisure 

a list of Dos. Don’ts and Musts in the Land 
of the Morning Calm. 


visitors from most countries entering South 
Korea with confirmed outbound tickets may 
stay visa- free for up to 15 days. In addition, 
countries with which South Korea has visa 
exemption agreements may stay for up to 
90 days without a visa. 

and is a good alternative to taxis for arrival 
and departure, international departure tax 
is 9,000 won. 


This is not a. Korean custom and is best 
avoided. Some of the more luxunous hotels 
' like The Shilla actually ask guests not to tip 
the staff. A 10 percent service charge will be 
added to your bill when necessary. 


The country's official currency is the South 
Korean won. The exchange rate is around 
900 won per U.S, dollar. 


There are two lypes of taxis in Seoul. Deluxe 
taxis are bigger and more comfortable and 
driven by courteous uniformed drivers who 
usually know some addresses in English. 
Fiagfall is 3.000 won. 

Normal Ians are much cheaper, with a 
fiagfall of 1.000 won. but the drivers sel- 
dom speak any English. These taxis may 
also s«op to pick, up other passengers, 
especially at night. Try to avoid the midnight 
rush in busy areas as it can be very hard to 
find taxis: if it is raining. It becomes almost 

Business Hours 

Businesses tend to open early, some as 
early as 7 AM. Government offices are 
open from 9 A.M. to 6 P.M. except dunng 
the winter months, when they close at 5 
P.M. On Saturday, they close at 1 P.M. 
Banks are open from 9:30 A.M. to 4:30 
P.M. on weekdays and till 1:30 P.M. on 

Arrival and Departure 

The journey from Seoul's Kimpo Intema- 
Uun j| Airport to downtown usually lakes 45 
mmutes. bur can take much longer during 
rush hour. & 

A \*- j ry efficient and inexpensive airport 
b V! Svwcm operated by Korean Air con- 
foe hotels in downtown Seoul 

Business Etiquette 
South Korea is a Confocian society where 
the traditional Asian values of hierarchy and 
respect for seniors are considered very im- 
portant. especially among the older gen- 
erations. You are unlikely to receive a direct 
“no" to a business proposal, : es Koreans 
would rather save you face than give you a 
straightforward rejection. Hospitality is also 
important, and doing business with South 
Koreans may well involve some drinking 
and dining sessions. Since Koreans plac* a 
strong emphasis on personal relationships 
and getting to knowfoeir business partners 
this aspect of business should not be ov*r 
looked. The person who extends the 
vrtation should also provide the entertain 


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RAGE 29 


In Every Season 

Attractions range from ski resom to sandy beaches. 

F ew would dispute that 
South Korea has the 
natural talent to be- 
come a tourism superstar. 
From historic towns to ski 
resorts to a charming sub- 
tropical island called Cheju- 
Uo, the country offers an 
amazing variety of sights for 
such a small place. 

; Kyongju, a city of 150.000 
people about 300 kilometers 
southeast of Seoul, is the 
pride and joy of all Korea. It's 
been called a “museum with- 
out walls” and designated by 
UNESCO as one of the 
world’s 10 most important 
historic sites. And for good 

- ft was from Kyongju. 
starting in AD 668. that the 
powerful Shilla kingdom 
Unified the whole of the 
Korean Peninsula for the first 
time. For the next 200 years, 
it was one of the globe's most 
dynamic cities. 

Art and architecture flour- 
ished, and a distinctive Shilla 
style emerged that is still rec- 
ognizable today. Temples, 
tombs and great palaces 
arose, and many of them are 
still intact 

Skiing and sun worship 

North of Kyongju are some 
of Korea’s most stunning 
mountain and coastal resort 

Soraksan ( “Snow Peak- 
Mountain”) rises to 1,708 
meters amid the Taebaek 
Sanmaek. or Great White 
Range, one of the country's 
best national parks. Ski areas 
flank the park on eithcr.side, 
including Alps Ski Resort 
and Dragon Valley. 

They have all the neces- 
sary facilities: ski runs, chair 
lifts, ski schools, rental fa- 
cilities and lodges. Soraksan 
is also popular in summer, 
when Koreans flock to its 
superb hiking trails and 

Serious sun worshippers 
head for the east coast 
beaches each summer. 
Among the best are 

H wajinpo — a pristine strand 
near the demilitarized zone 
and Kyongpo-dae, a wide, 
white-sand beach that has 
been a favorite Korean sea- 
side retreat for many years. 

The east coast is’ also fa- 
mous for its fishine ports, 
which means plenty of fresh 
seafood. Sokcho is renowned 
for its octopus steaks and 
abalone stew. Yongdok is 
celebrated for its crab. Ky- 
ongpo-dae offers seafood 
soup and dried cuttlefish as 
its local specialties. 

Urban pleasures 

Taegu — Korea's largest in- 
land city — is the center of an 
important agricultural re- 
gion. especially famous for 
its apples. Taegu's markets 

•*'< .■ >■ 

Sports and Politics Draw Visitors 

South Korea wilt host the Asia-Eumpe Summit in 2000 and the 2002 World Cup. 

T o say that Lee Kyung thing, tourism infrastructure velop their own economic KNTO would U 
Moon has big plans is relatively undeveloped and tourism projects. number of ar 

for Korean tourism is compared with that of the “Manv local governments Eurooe. North > 
heavyweights of Asian tour- 

for Korean tourism is 
an understatement. The re- 


cently appointed president of ism like" Thailand. Hong 
the Korea National Tourism Kong and Singapore. 

The prcwinces are athactfog higher nwnbers of visitors every year. 

Organization (KNTO) wants 
to use the upcoming Asia- 
Europe Summit (2000) and 
World Cup ( 2002 ) — co-hos- 
ted with Japan — as spring- 
boards to launch the country 
into the big leagues of Asian 

“The goal of Korean tour- 
ism over the next decade is to 

More hotel rooms 
"We have been suffering 
from a lack of hotel rooms to 
accommodate a large num- 
ber of foreign visitors," says 
Mr. Lee. The shortage is es- 
pecially acute beyond Seoul, 
where there is an almost total 
lack of international “brand 

Urban pleasures nates the northwest It was 

Taegu — Korea's largest in- from here that UN forces un- 
land city — is the center of an der the command of General 
important agricultural re- Douglas MacArthur made 
gion. especially famous for their famous “break out" 
its apples. Taegu's markets thar turned the tide of the 
overflow with the bounty of Korean War. Pusan has 
the surrounding fields and grown into a bustling me- 

orchards. and the city boasts 
one of the best traditional 
medicine markets in Korea. 
Along Yak-chong Kol-mok 
(Herb Street) are dozens of 
hanvak. or medicine shops, 
that dispense exotic delights 
like ginseng. 

Pusan dominates the 
country's southeast comer as 
effectively as Seoul domi- 

tropolis of almost 4 million 
people. Korea's second 
largest city and most impor- 
tant seaport. 

Natural beauty 

To the west of Pusan is the 
starkly beautiful Hallyo Wa- 
terway region, an area that 
Koreans hope to develop into 
a major international holiday 

draw. The archipelago em- 
braces 368 islands, barely a 
third of them inhabited and 
all now protected within the 
confines of a marine national 

Farther afield is Cheju-Do 
island which can be reached 
by plane from Seoul or ferry 
from Pusan. Long known as 
Korea's honeymoon haven, 
the rugged island is evolving 
into a w ell-rounded vacation 
spot that offers numerous re- 
creational activities. Fore- 
most is golf: the island 
already has five courses and 
another 1 b are said to be in 
development J.R.Y. 

promote Korea as a place of name" hotels. The only ex- 
beauty and cultural attrac- ception is the popular Cheju- 

tions,” says Mr. Lee. "We 
expect to be the second 
largest destination after 
China in this area." 

What that means in real 
terms is 8 million foreign ar- 
rivals by 2004 and 10 million 
by 2007. vvhen tourism-gen- 
erated revenue is expected to 
reach S10 billion. Last year. 
South Korea attracted 3.6S 
million arrivals and S5.4 bil- 
lion in tourist receipts. 

KNTO and the nation's 
tourist-related industries 
have their work cut out for 
them if they hope to achieve 
those lofty 1 goals. For one 

Do island resort In order to 
stimulate hotel development 
the government has eased 
regulations governing for- 
eign investment in the hotel 
sector. The government is 
also urging hoteliers to dis- 
count the price of hotel 
rooms for foreign visitors. 

In a related move. Pres- 
ident Kim Young Sam has 
instructed the central govern- 
ment to delegate more au- 
thority and financial re- 
sources to the 15 major 
municipal and provincial 
governments in Korea, so 
these local bodies can de- 

The View From the Top: IHT Conference Unites Business and Poutical Leaders 

South Korea is embarking upon perhaps the most 
radical restructuring of its economy since its tran- 
sition from a low-cast commodities producer to a 
technology-oriented economic giant. The Interna- 
tional Herald Tribune's Korea Summit, which will 
be held on September 10. 11 and 12 in Seoul, will 
focus on the global business opportunities presen- 
ted by this restructuring as South Korea embraces 
the concept of ssegaewha. of globalization. 

The conference gathers together several hun- 
dred of the highest level participants from the 
public and private sectors of South Korea and from 
around the globe. Sessions will focus on the 
practical issues that face the nation as it steers its 
course toward the 21st century. 

The summit takes the format of two days of 
plenary sessions, followed by athird day of company 
workshops and events organized by South Korean 
conglomerates Samsung, Daewoo and Hyundai, as 
well as Hong Kongbased Peregrine investment 

Holdings Ltd. Top executives from Daewoo. Hy- 
undai. Samsung and Peregrine will also deliver 
important papers during the conference itself. 

The summit includes keynote addresses on 
South Korea's economic restructuring from Pres- 
ident Kim Young Sam, Deputy Prime Minister and 
Minister of Finance and Economy Kang KyongShik. 
Minister of Foreign Affairs Yoo Chang Ha and Min- 
ister of Construction and Transportation Lee Kwan 
Kyun. These addresses set out the bold new eco- 
nomic. financial, trade and infrastructure devel- 
opments upon which South Korea is embarking. 

One area of significant reform will be a greater 
autonomy in the future for the different provinces 
of Korea. A panel discussion with the governors of 
Chollabuk-do, Kyonggi and Kyongsangnam-do 
provinces examines the future role that the pro- 
vincial authorities will play. High-level government 
participation from other countries includes an ad- 
dress from Utkur Sultanov, prime minister of 

Uzbekistan, where South Korean companies are 
making substantial investments; and Dr. Hartarto, 
coordinating minister for production and distri- 
bution of the Republic of Indonesia. A vice minister 
of China’s Ministry of Foreign Trade and Economic 
Cooperation is scheduled to appear, subject to 
confirmation. Besides economic trends. South 
Korea's Increasing role in regional security and 
global development cooperation will be examined. 
South Korea was admitted to the Organization for 
Economic Cooperation and Development (OECD) 
last year as the 29th member, and OECD Sec- 
retary General Donald Johnston will give an ad- 
dress on the role that South Korea isto play. South 
Korea’s hand in regional security will be discussed 
by a panel comprising Richard A. Christenson, 
charge d'affaires at the U.S. Embassy in South 
Korea: a senior representative of the Japanese 
mission to Seoul: and the Chinese ambassador to 
South Korea. Zhang Tingyan. P.H. 

velop their own economic 
and tourism projects. 

"Many local governments 
are trying to attract more vis- 
itors into their own regions 
because tourism receipts will 
be one of their major revenue 
sources in future.” says Mr. 

South Korean companies 
in the sector are also moving 
into the provinces. Nasan 
Leisure Development Co, 
Ltd., for instance, is devel- 
oping a large-scale tourist re- 
creation center on 2.4 million 
square meters of land in Po- 
chun-gun, Kyonggi 

province. This will include 
the Nasan Country Club — 
with an 18-hole golf course 
— as well as snow sledding 
and other facilities suitable 

KNTO would like to see the 
number of arrivals from 
Europe. North America and 
Australasia increase substan- 
tially over the next decade. 

Tourism authorities realize 
that it won't be easy. Japan 
and China, with their world- 
famous monuments and 
well-known cultures, tend to 
overshadow Korea's less fa- 
miliar sights and society. 

But that could be a boon 
rather than a bane, says Mr. 
Lee. He feels that Korea 
should promote itself as an 
additional stop in North Asia 
rather than as a separate des- 

With that in mind, mu- 
nicipal tourism authorities 
from Seoul. Beijing and 
Tokyo recently formed a 

for year-round visitors. Nas- joint body to promote “triple 
an Is also developing other crown” vacations that take in 

prime resorts in South Korea all three cities, 
and abroad, including the In a related move, Cheju 
Sunoon Country Club in island is linking Up with Bali 
Kochang. Nasan Chenju Re- (Indonesia). Okinawa (Ja- 
sort Town and Saipan Tour- pan) and Hainan (China) to 
ism Development. form an integrated island 

tourism zone that will even- 
improving access tually be supported by direct 

Transportation projects like air and sea routes between 
the new Inchon International the four destinations. 

Airport and the high-speed 
train between Seoul and Rediscover Korea 
Pusan are expected to im- Outbound tourism is grow- 
prove tourist access to South ing rapidly in the wake of 
Korea and its varied attrac- South Korea's economic 
tions. boom. More than 4.6 million 

Another pressing issue is Koreans went abroad last 
giving South Korea a higher year, a 2 1 .7 increase over the 
profile overseas. Over the previous year and an amaz- 
next few years. KNTO will ing six-fold increase since 
be participating in more in- 1988. when Seoul hosted the 
temational travel fairs and in- Summer Olympics, 
viting more travel writers. In an effort to get more 
agents and film crews to Koreans to take holidays in 
Korea in an effort to spread their own country, KNTO re- 
the message that the nation cently launched foe “Redis- 
offers unique cultural and cover Korea” promotion, 
natural attractions. KNTO The advertising campaign 
will also beef up its presence targets seven domestic des- 
on foe Internet. tinations as places that every 

Last year, nearly half of Korean should visit “The 
Korea’s inbound travelers campaign is working well so 

(41.4 percent) came from 
neighboring Japan. The next 
biggest groups came from 
Europe ( 1 1 .5 percent) and the 
United States (10.8 percent). 

far,” says Mr. Lee. “The 
trend [in domestic tourism] is 
increasing, and the ratio of 
domestic to outbound trav- 
elers is decreasing.” J.R.Y. 


to-*.-**?* 1 * . w 

. y * 





mi iMBm j if 

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PAGE 30 


2 -Goal Recoba Upstages 
Ronaldo as Inter Wins 

CmfQn I by Our Staff From Uspachrs 

Alvaro Recoba stole the thunder from Ron- 
aldo on Sunday as Inter Milan beat Brescia, 2- 
1 , on the opening day of the Italian League 

Ronaldo failed to find the target on his 
debut in Italy, although he did rattle the cross- 
bar with a free kick midway through the 
second half. .... 

Dario Hubner gave Brescia the lead in the 
73d minute, prompting Gigi Simoni. the Inter 
coach, to replace Maurizio Ganz later with 
Recoba, like Ronaldo a summer signing, in 
attack. Four minutes after coining on, the 
Uruguayan unleashed a stunning 25-yard 
drive to level the scores, and in the 87th 
minute he scored another to secure a stunning 

Juventus, the Serie A champion, seemed to 
be heading for an embarrassing goalless draw 
with newly promoted Lecce in Turin until 
Filippo Inzaghi, the Serie A’s top scorer last 
season with Atalanta, struck in the 84th 
minute. Antonio Conte scored in injury time 
to give Juventus a 2-0 victory. 

AC Milan had to settle for 1-1 draw at 
Piacenza where Daniele Delli Cam scored for 
both teams. The Piacenza defender scored an 


own goal in the 29th minute, but made amends 
by scoring the equalizer in the 64th. 

Gabriel Batistuta scored a hat-trick for 
Fiorentina in a 3-2 comeback victory over 10- 
man Udinese. 

The Brazilian striker Amoroso was both 
hero and villain for Udinese, opening the 
scoring in the 28th minute but was sent off 
three minutes later for applauding the referee 
— his clapping interpreted as an insult to the 
match official. 

Batistuta leveled after an hoar, and with his 
side trailing, 2-1, “Barigol” scored twice in 
the last five minutes to secure victory. 

Parma, last season's runners-up, earned a 
2-0 victory at newly-promoted Bari. Pietro 
Strada struck just before the break and Ant- 
onio Bennarivo added the second with a su- 
perb long-range shot. However, they finished 
with 10 men after Dino Baggio was sent off. 

Roberto Baggio scored from die penalty 
spot on his debut with Bologna but couldn't 
prevent his new team from slumping to a 4-2 
defeat away to Atalanta. 

Netherlands Ajax demolished FC 
Utrecht, 7- 1 , on Sunday to secure top spot in 
the Dutch premiership on goal difference. 

The revamped Amsterdam team has won 
its first three matches and scored 17 goals. 
Utrecht's Harry Decheiver was the only play- 
er to beat keeper Edwin van der Sar. 

Tijani Babangida of Nigeria scored first for 
Ajax. He was followed by newly-signed Danes 
Ole Tobiaseu (twice) and Michael Laudrup, 

pion, a 1- 1 home draw with local rival Atletico 
on Saturday in an exciting match in which 
both teams created many chances. 

Juninho had scored on his league debut to 
give Atletico the lead on die opening day of 
the Spanish season. 

Seedorf, who had become a father the night 
before, scored with the outside of his right foot 
from 50 yards in the 75th minute as Real 
extended its unbeaten sequence over Atletico 
in the league to 12 games. 

Real had fallen behind to a 16-minute goal 
from Juninho in the Brazilian's first league 
match for his new club. 

England Manchester United wrote a small 
piece of club history as it beat Coventry, 3-0, 
and kept the pressure on Blackburn at die top 
of the English Premier League. Peter 
Schmeicbel ’s safe hands in goal ensured 
United had kept a clean sheet for five league 
games this season. It is the first time die club 
has started a season with five straight shutouts 
since joining the league 105 years ago. 

Blackburn won 2-1 at newly-promoted 
Crystal Palace in south London. Blackburn 
leads Manchester United on goal difference. 
Both are on 13 points, three clear of the rest 

Andy Cole started for United for the first 
time this season and saved after 76 seconds 
with a shot deflected in past goalkeeper Steve 
Ogrizovic. Roy Keane, the captain, scored 
alter a corner, and Karel Poborsky scored die 
third from a pass by Ryan Giggs, in the 72d 

Blackburn took the lead through Chris Sut- 
ton in die 23d minute. Kevin Gallacher made 

Is First 

„ kie SI>i 

for I 

By Amy Shipley : «. ; A 

Washington Post Service 

HOUSTON — D&zens - ■V cci %n& >*/*' 
security officials held yello^’ 

rope to keep the fans off 
court at the Summit a s\ a 

final seconds ticked awayjfcf-^l- . 
the first WNBA champions L ”, 
ship game, and th ere 
beauty in die fact that the 
was needed. ' v?, . 

The Houston Comets beat* • 
the New York Liberty, 65-5 & ; * ’• • 
on Saturday to be&me tifelY < 
Women’s National Basket^' C~; 
ball Association’s firet ehteDf*] v *» 
pion. ’V 

The game's most valuable*^ * 
player, Houston guard Cyn*-t. 
thia Cooper, finished off hefu^ ; 
25-point ; performance - by * i ; • - 
leaping onto tb^ scorer*^* » 
table. v ’ ' 

Comet players hugged anfc>*.r 
danced, wearing tfaefl^- new* 1 
world champion T-shirts 1 , 



Ronaldo, right, of Inter Milan struggling to escape the attentions of Alberto Sal vino of Brescia on Sunday. 

it 2-0 in the 31st before Palace pulled a goal 

back through Bruce Dyer in the 51st 
West Ham moved up to third place after 
beating Wimbledon, 3-1, at Upton Park. Ian 
Wright, of Arsenal, was booked in the first 
half of a goalless north London derby against 
Tottenham. Spurs played with 10 men after 
Justin Edinburgh was sent off in the 44th 
minute after fouling Wright 
Chelsea, who smashed six goals past 
Barnsley last Sunday, beat Southampton, 4-2, 
to go fourth despite ending with 10 men after 
defender Frank Sinclair was sent off for vi- 
olent play 12 minutes from time. 

Germany Bayern Munich, the German 
champion, beat Rostock, 3-1, Saturday to 
climb to second in the table, three points 
behind promoted Kaiserslautern, which won, 
3-1 , at Bochum on Friday. 

After scraping only one point from its first 
!, Bayern ha 

the Georgian Shota Arveladze and the Ajax 
veterans Jari Lit 

Litmanen and Danny Blind. 

Feyenoord, which beat De Graafscbap 
Doe tine hem, 2-0. with 10 men on Sunday, and 
Heerenveen, 3-1 winners at home to MW 
Maastricht on Saturday, are level with the 
Amsterdammers on nine points. 

SPAIN Clarence Seedorf scored from long 
range to give Real Madrid, the reigning charn- 

Mehraet Scholl opened the scoring in the 58th 
minute and fellow midfielder Christian Ner- 
linger made it 2-0 eleven minutes later. 

Rostock fought back with a goal by the 
Croatian Igor Pamic before striker Cars ten 
Janker sealed victory for the visitors with 
three minutes remaining. 

France Marco Simone scored twice as 
Paris Saint-Germain trounced Rennes. 4-1 . at 
the Parc des Princes on Saturday to stay in 
touch with Metz, the French League leaders. 

Metz retained top spot with a 2-1 away 
victory against title holders Monaco on Fri- 
day, making it five victories out of five for the 
leaders. Simone, a former AC Milan striker, 
struck in the 68th and 75th minutes. 

(AFP. AP, Reuters) 

Hingis Passes Test to Beat Russian 

By Rachel Alexander 

Washington Post Service 

NEW YORK— You could say Mar- 
tina Hingis was tested at the U.S. Open 
on Saturday, since she lost more than 
twice as many games in her two-set 
victory over Elena Ukhovtseva than 
she previously had in the tournament. 
But defeating Ukhovtseva, the world's 
25th-ranked player, 7-5. 6-2, doesn’t 
exactly count as a full-scale exam, and 
Ukhovtseva knows it. 

**I guess it was a little harder for her 
today, but she still won in two sets, so 
what does that say?” Likhovtseva 
asked. “1 had a couple of great points, 
but I had problems with my serve. She 
is the Number One player in the world. 
When you play. her. there's a chance to 
win, but really there’s a good chance 
you are going to lose.” 

■That may be an understaiemenL 

4, in a third-round match that lasted just 
1 hour 30 minutes. 

The victory for Hingis, 16, guar- 
antees that she will exceed the $4 mil- 
lion mark in career earnings here. 

“I don’t know where that money 
is,” she joked ”1 didn’t know that. I 
think it’s nice for me, though, no?” 

For a few minutes Saturday, it 
seemed as if Hingis might have to work 

U.S. Open Tennis 

Hingis has been pushed to three sets 
in 64 matches this year. 

only 16 times 
and she had lost three games in her first 
two matches here. She is marching 
through her opponents in a bid for her 
third Grand Slam title this year with 
almost as much ferocity as men's de- 
fending champion Pete Sampras, who 
raced past Alex Radulescu, 6-3, 6-4, 6- 

harder than usuaL She began the day in 
cruise control, going up 4-2 in the first 
set. Ukhovtseva got to 4-4 by breaking 
Hingis’s serve and then holding her 
own. The crowd, seemingly bored to 
that point, got into the match and behind 
the 20-year-old Ukhovtseva, who plays 
doubles with the 16-year-old Russian 
phenomenon Anna Koumikova. 

That’s when a match between Hin- 
gis and Likhovtseva at the Lipton 
Championships earlier this season 
began flashing back to Hingis. 

“I remember still that match from 
Key Biscayhe when she gave me a hard 
time.” said Hingis, who needed three 
sets to win that day. *'I could have lost 
there. I knew she was going to give me 
a hard time. I was just maybe a little 

nervous, so I didn't serve as well.” 

Hingis's serving troubles subsided 
briefly, as she and Likhovtseva ripped 
through their service games to 5-5. But 
Hing is took tiie next two games easily, 
claiming the set and seemingly slap- 
ping out of danger. 

Ukhovtseva began the fight again in 
the second set, breaking Hingis early. 
Hingis broke bade, then won her service 
game. At 3-2, Likhovtseva served in the 
match’s longest game. It featured five 
deuces, and Likhovtseva had the ad- 
vantage three times. Hingis finally won, 
capitalizing on two consecutive errors 
by Ukhovtseva. That put Hingis up, 4- 
2, and sealed the match. 

Sampras, who has yet to play more 
than three sets in a match in this tour- 
nament. said he needed to concentrate 
to beat l36th-ranked Radulescu. He 
has also beaten qualifiers Patrick Banr 
and Todd Larkham. 

'‘These guys I’m playing have noth- 
ing to lose, so you have to stay on your 
toes,” Sampras said. “I put so much 
emphasis on this tournament, and all the 
majors, that yon try not to have your 
mind wander, you try to stay focused.” 

Sampras dealt with Raduiescu’s big 
serve relatively easily, saying later that 
accuracy is more important than speed. 

caps, as the sellout crowa : i&-‘ 
mained. some staying fcrm&e' 
than an hour after the gamft > 
The- jjostgame festivities’* 
were a celebration both of- 
Houston Vtifle and an inan-^ 
gural WNBA' -season that at- 
tracted more tfrqn a •million* 
fans. 'V 

“This has been a ttuill of a 
summertime.” said Houston / 
Coach Van Chancellor, .whd-» 
never won a national -title in-* 
19 years coaching the woto^‘ 
en’s team at the University of “ 
Mississippi ‘Tin labbtff as 
happy today as I’ve everibeen * 
in my life.” . ' 

New York, brought the 11 
league’s third-best defensive! 
team and Houston brought* 
the second best, and the result 
was teeth-nutling defense and- 
plenty of missed shots. The* 
Comets converted just 40f.7’-’ 
percent of its‘ ? field goal ‘ 
tempts and New York toil** 1 
nected on 38 J percent ■ 

The Liberty trailed by fourT; 
points at halftime bhf seemed-* , 
to lose its composure hrtbS!’ ' 
first five minutes of the seainf« ' 
half, felling behind by 12> ; ^ 
New York forward Re- 
becca Lobo was kept in check' 1 , 

— with 9 points. 9 rebounds 

— by the Comets' Tina** 
Thompson, who'' scored -18 '' 
points. Point guard Teresa-* 
Weacherspoon, who" got in 
foul trouble and seemed ten-* 
tative offensively, had ferar^ 
points and five assists. * ’ ■ * ’ 



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Major League Standings cmcobb 












New York 




































Kansas City 















































New York 


























St. Louis 
















Las Angeles 





San Francisco 










San Otago 








000 ott 008—1 

4 0 

Oetroil DM 310 22*— 7 10 1 

T-Gran. Karp M. SpradGn (7). Btarier (8) 
end Ueberthak Stale MleeU (9) and 
Casanova. W— Bkrtr, 1-^6. L— T. Gnseiv 3-1 
Atlanta 010 004 130-0 it 0 

Boston aoo ooa mi— i s a 

Smoltz, Ctantz IB), UgfenOB? (91 and J. 
Looer Sato Hwtsoa M. Maher &• 
Brandenbuip U). Coni 19) end HafleDetq. 

W— Smoltz, 13-10. L— Soto 12-11. 
HR*— Atlanta. McCrtff 08), Coibnim O). 
Boston, Jefferson (13). 

(N) 100 010 040—4 13 1 

000 210 31*-? 11 3 
JeGanzotex, D. Stevens (7). Patterson (81 
and Houston Herehtsac, M. Jackson (8). 
Assenraoetier 18), Mesa (8) and S. Alomar. 
W— Mesa 3-4. L— O. Sloven, 0-1. 

Monirem on ooo am— 4 9 o 

Now York (A) 010 001 010-3 $ 1 

C Perez. CTne (8), Tetfonl (8). Urbina (9) 
and FWchto WMger (9); Gooden. Slankm 
(8), AARmni (9) md Paaoila. W— Teffonl 4- 
4. L-M. RNwa 44. So— Urbina 03). 
HR— Montreal, Strange DO). 

Florida 000 302 120-8 10 0 

Toronto 000 000 000—0 3 1 

Aidter. F. Heredfa (7), PmwJ CO. 
Vosberg (9) «id CJotmoa Petsarv Crotrtree 

(7) > Plesac(9)Qnd8.SanHaga.W — A. Letter, 
9 9. L— Person, S-W. HR-PbtUa. C 
Johnson (18). 

Kttsburgli 000 001 000-1 e o 

MZmakae 000 300 10)1-4 4 1 

Looiza Rincon (8) and Kendolfc Karl 
wickman IB), DoJones (9) and Maiheny, 
W-Kaik 10-lft L — Loalzn. 1IW. 

Sv — DoJones (29). 

Ootioofl WO 300 101-5 9 0 

Minnesota 02® 000 010-3 7 2 

Tomka BeSnda (6), Shaw (9) and J. Oliver: 
Fr.Radriguez. Trombley (7), SwfeideU (6) and 
SteWroch. W— Tomka 9-5. L— FrJIodrtgirez, 
2-5. Sv— Shaw (28). HRs— cmdnmjJi. W. 
Greene (19). Minnesota, M. Cordova (u). 
Houston 101 001 100-4 9 0 

Chicago | A) 000 2m 12x-5 8 1 

RXcroa T. Martin (7). Hodek (8), 
Magnanto (8) and Ausmus; Eyre, Foulke (4). 
T Cnsttflo (7). Kaichner (9) and Fpbregas. 
W— Foulka l-O. L-Hudek. 1-3. 
S*— Katclmer (11). HRs— Hovstoa Biggio 
(20), BojweO (36). Chrcaga Fabregas (7). 
St. Louis 021 011 040-9 II 0 

Kansas Cly 001 230 001—7 8 0 

Lowe. F rascal ore 15). Beltran (7), C. King 

(8) , Eckerstay (9) and DHbJice. Lampkin (8k 
PBtsJcy. Banes (3), WWsenant (6), Carrasco 
(7), Oban 18), J. Walker (9) rmd MLSweeney. 
W— BeBran, 1-1. L— Canasca 1-4. 
Sv— Eckerstay (31). HRs— St Louis. 
McGwire 19), Planner (3). Kansas CHy, 
j.Khig 09), Miaweeney (6). 

Seattle 201 aM 020—5 7 I 

Cotarade 022 000 002-4 11 1 

Clouda Ayala (7), Timlin (8) and 
Da.WBsatc Jm.WrigM> DIPoCo (8) rmd 
JtReed. W— Dipota 4-2. L — TimBa 3-3- 
HRs— Seattle, Sorrento (26). Cotoroda 
LWaflwr (3D, Gdfanaga (36), Castillo (37). 
N.Y. DO 120 000 000 #00—3 9 1 

Baftbnore 000 000 710 001—4 10 1 

12 taatass 

MBdu. McAMctaei (7). Roh» (9). Wendell 

(11) , Jairaico (11) raid Hundtap 
KnmtartecJd, Mills (8), RaMyers (9). A. 
Benitez (10). Rhodes (11) and Webster. 
W— Rhodes, 11M. L— JoFranoa 4-2. 
HRs— New York, M. Franco (4) . Battbnraa C 
Ripken (15). Baines D4). 

AneMm 000 021 000-3 7 1 

San Diego 000 000 001—1 5 0 

ICHB. Perdval (9) and Kreater; P^mfth. 
Bergman (6), Boddler 18) and Flaherty, 
CHemandez (8). W-K. HiS. 7-11. L-P. 
Sindh, 5-i Sv-Pereiyol (22). 

OaUand 910 007 910 ? — 4 S 2 
Los A ngel es 008 200 100 2—5 8 0 
00 innings}: Rig by. Taylor (B). TJ -Mathews 
DO) and Moyne; I.Vakte& Radinsky (8), 
Osuna (9) and Piazza. W— Osuna 3-3. 
L— ' TJJWataews.4-2. HRs-Oakiand Tejada 
ID. Moyne (4). Los Angeles. Kama (26). 
Texes am 200 020 000—4 10 1 
S. FrondscB DID 000 210 001-5 9 0 
(12 imrings):Hefln& Patterson (71. Bodes 
(9). W. Heredia DO), Eversgerd DU, Moody 

(12) and LRodriguefc Gardnee. Tmrarez (8), 

R. Hernandez IB), AMdhodaid (10), 

R. Rodriguez (12) end BJohraoa W — R. 
Rodriguez. 4-3. L— Eversgerd. o-Z HR— San 
Fiandsca Kerri 06)- isl.scg SC-B80- 
LmesaKe, wntemnL0433: 

iomm ufuncom 


Atlanta 202 40! 050—15 19 0 

Boston 000 001 100-2 7 1 

MHwood Cotter (S, CFo (?) and J. 
Lopez; Wakeiletd, Wasrfin 14), Hudson (8), 
Brandenburg (9) and Hattebag. 

VV— MJIhtood. 3-3. L— WckelWd. 9-15. 
HRs— Atlanta. McGcHf 2 C20). Klesko (20). 
artcogo 381 011 021-9 15 1 

Cleve l and 010 20) 000-4 8 0 

Toparti. Pisdotto (6), T Adams (9) and 
Servofa Smiley. Shoey (6). Plunk (8) and 

Borders. W— Tapani 4-3. I Smiley. 2-4. 

HRs — Chicago. Glamrillo (4), MoGraoe (10). 
Cleveiand. Justice O0|. 

New York 000 271 487-72 19 0 

Batboioro 030 200 001—6 9 1 

Batman. Lkfte (6) and Pratt Krtvrfa 
TeJAattiews (Si. MBs (7) and Holes. 
W — Bahama 4-3. L— TeJWathew& 3-3. 
Sv— Lidle CO- HRs— Now York. Gflkey D3). 
BcJtonore, By^nderson (16), Hories (111. 
Florida 880 000 130-4 10 0 

Toronto 000 000 010-1 3 1 

A-Ferrmdez, Non (9) and CJohnsort 
Carpenter, OuardriB (B). Escobar (9l and B- 
Sartnoga. W— A. Fernandez. 17-9. 
L— Carpenteo 1-6. Sv-Nen (32). 

Meatreal 032 IBB 001-7 11 0 

Now York 000 000 030-2 5 1 
PJ .Martinez and Fletcher; D.Weito Nelson 
19). Lloyd (9) and GiranS. W— PJ-Martinex. 
16-6. L-O. Weks. 146. HRs — MontreoL 
R-WNte (22). Fletefter(i7). 

Anrttelra 100 002 900-3 6 0 

Star Francises 818 420 OQx— 7 10 0 
D .Springer. P. Hants (5), Coda nel (7) and 
Krwrtec Estes, R. Rodriguez (71 
RMesnmda (At, Beck (9) and B. Johnson. 
W-Estes. 1M. L— D. Soring ct, 8-7. 
HRs— Anaheim Henderson (2). Son 
Franclsca Snow 2 (24), Vizcaino 15). 

Seattle 010 000 001-2 5 0 

Let Angeles 230 204 00*— 11 14 0 

Wolcott Wefls (51. Chariton (7), Stoaimb 
(8) md Monona RMorifnez, DreMort (7) 
and Piazza Prince (7). W— R. Mo rflnei 9-3. 
L— Wolcott S6. Sv— Orerfort (3). 
HRs— Seattle, Sheets (3). Buhner (32). Los 
Angetes, Pknza (32). Karros (27). 

HousIbr 01 a ooa 100 — z 3 0 

Chicago 300 013 20X-9 14 1 

Hampton. Luna (6) and Ausmus; Bens 

McEkay (7). Sirotka 19) and Karkovia. 
W — Sere. 34). L— Hampton. 11-9. 
HRs— Houston, Bagwell (37). De.Beti (12). 
Chicago. Durham (9). DoMotimez (I lj. 
Ordonez (1). 

PhSadelphta 001 901 000—2 I 0 

Detroit SCO rno 000-0 8 0 

Bocctt Bcttolico 18) and Lieberthal 
Slanders. MJMyen (6), AAceli i7). B recoil 

(8) . To Janes (9) and WaJbcck. W— Beech, 3- 

8- L— S. Sanders. 4-12. Sv— BarialKD (26). 
Gtrdnari 000 BID 000—1 7 2 

Minnesota 010 003 00*— 4 7 2 

Morgan, Fe.Rodriguez (7), SulBvan (8) and 
J. Oliver: HowWns. Guardado (8), Aguilera 

(9) and G. Myers. W— Hawkins. 5-9. 

L— Morgan. 5-1 1 . Sv— Aguilera Cl). 
HRs— Minnesota. Cramer (9), G. Mycn (5). 
Pittsburgh B10 IOC 001—2 70 f 

Milwaukee BIB 000 HO— 1 4 0 

Lieber. Rincon (8), Labette (9) raid 
Kcndafl; J -Mercedes, Fetters (9) and 
Matteny. Levis (8). W-Ueber 9-12. L— J. 
Mercedes 6-8. Sv— Labette (24). 
HR— PDttburglv M. Smith (8). 

SL Loots 010 022 000-5 7 0 

KmasCHy 051 818 IN— 16 15 8 

Aybar, Petkavsek CD, Fossni (4), Bautista 
(7) and Pognaza.- Betahu J. Walker (8), 
Service (9) and Madartane. W— Batcher 12- 
11 L-Aybar 0-4. HRs-Kansm CHy, Halter 
(2), C Davis (28), J. King (20), Palmer (IB). 
Dye (5). 

Oiritand 810 OH 802—3 9 1 

Cotoroda 000 102 am— 4 10 1 

Haynes Groom (7), AJmaf (8). Mahler (91 
and Moyne FXashlto M. Munoz 17), Dlpato 
(9) and Manrartng. W— Dipoto 5-2. 
L— Mahler 1-ia 

Tezns OH OH 010-1 8 2 

Sea Diego 380 HI Ha— 4 6 0 

TtCtarto Soriana (6), Salles (8) and 
Leyntz; Ashby. Hoffman (9) and C 
Hernandez. W— Ashby 7-11 L—Te. Clark 1-7. 
Sv— Hoffman (31). 

Carolina Slate 32-31 DT. No. 14 Mkanl (1-0) 
beat Baylor 45- 14. No. 16 A!Haora(l-0> brat 
Houston 42-17. 

CFL Standings 





W L T PF PAPts. 

7 2 0 14 288 173 

7 3 0 14 261 292 

1 80 2 200 264 

1 8 0 2 196 291 

He er enve en 3 MW Maastricht 1 
RodaJCKettoade 4 Groningen 1 - ■ 

NAC Breda 0 NEC Nijmegen I 
PSV Eindhoven 3 WBetn II Tilburg 0 
Forhma Sittord 0 RKC Woat*rijk3 
FC LrtrecW 1, Ajax 7 

Twente Enschede 2. Sparta Ro tt erda m 1 
Feyenoord Z Gmafschop Doettadiem 0 

Edmonton 7 2 0 

British Columbia 6 4 0 

Sastorichewm 4 5 0 

Calgary 4 5 0 

Satantuys Gama 

Montreal H Brttsh Cohrmbta 33 

14 2tf 212 
12 304 274 
8 194 234 
8 253 226 

BMW Open 

Japanese Leagues 




































47 63 0 

Mane lueoi 

























Nippon Ham 52 





Dal el 














Leading acorn Sunday from the final 
round of iho eft* 141 minion BMW Open, 
played at Oia tt339-me«or (tt323-yorri). par- 
72 Munich NonFCIcharvtad Go) I Club In 
Munich. Get marry: 

Bordeaux & A irane 2 
Lens a Montpellier 0 
Lyon (L Bastta 2 
Nantes ZLe Havre 0 
Ports < Rennes l 
Chateauroux 1. Cannes 2 
Toulouse I, Strasbourg l 
Gulngamp I, Marseille l 
Monaco 1, Metz 2 

stanmimisc Metz 15 prants Paris St 
Germain lfc Basita 11; Bordeaux 1ft Mar- 
seiBe ft Lens ft Tootouse ft Montpeffier it 
Strasbourg 6; Lyon 6; Nantes ft Auxerre ft 
Gulngamp Ss Monoco 4 Le Havre 4- Rennes 
4; Cannes 1 Chateauroux 2. 


Lionel Roux. Franca, det Paul Hawtuto_ 
Nath. 7-6 (7-5). 6-i 6-7 (5-7). 6-7 0-7). (U 

Justin Gimetatab, U.5, def. Magnw. 
-. :% Gustafssoa Swe.6-3. 3-ft 7-6 (7-4), 4 -ft 6 - 1 . 

Andre Agassi Ui, def. Adrian Volnea^ 
r Romania, 6-ft 6-2. 6-2. 

Leander Poes, Intfla def. Arnaud Boebctti 
France. 64. fttt 2-1, reffred. 

Sogl Broguera (7), Spain, del Gnat 
Stnffbr&Soulh Africa 6ft 6L 7-6 (7-3). < 

SagJs 'Sprgsiaa Armenia de*. OxSi 
Woodruft U^. woUmar. 

Maicato Rtas no). CMe. dsL Kennett; , 
C arisen, Oenmarib 6-4 5-7, 3ft 6-1, 7-6 (7-3).: 

Midi net Chong (2), U5. def. Jeff Sateen-; 
steitt 0.5^4-6,616-1 64. ■ " 


' Leiter. wno i -- ; - 

of his Iasi shssy.—j-;- 
two nins on ^ 

cr inning*- The . ; - 

tHlcher maictei h:s • 
high with niiw sit.ks.v-'-: 

The Tisen score i c . 

the ftroitb inning. Tr a ‘ ; ■ 

ouii fair a lcaiott -■-^ r • 
nioved up on Bob Hrr.r.: :. 
single and scored cr. - - 

Nieves’ sacrifice f:> 

Hamelin took secor.: 
Raul Casanova’s 
before Cniz fhrsj j .* 

oyer second bzsixzs: K:-.r 
Sefak,ojviaatheTv:r:' j 1- 

. Hie Phillies so: :h :s * 
run when Rsi H....- 
doubled and scores .r. 
Rolen's single in ae 

Indians 9, Cubs 5 ir. C ; 
eland. Charles Szgy >- <r - 
i^dy for Sepiernrt:. 

Matt Williams c’: :' :. 
hitting streal: to a car*--- - - • 



x-R. Korissea Swe. 
y-Corl Watti Eng. 

C Montgomerie, Scot 
Fobrice Tamoud. Fr. 
Thomas Btorn. Don. 
Phillip Price, Wales 
JaseCoceres. Arg. 
Paul Broadtiursi Eng. 
Eduardo Romera Arg. 
M. Angel Jimenez. Sp. 
Podralg Hamngtoft lit 

v - won pttiyotf an thH hole 

654747 — 66—265 
67-7844-68 — 249 
6644-7148 — 269 


Memorable Moments from Johnnie Walker: R\ DER Cl P with Bemml (Mulwr 


. . / 

pffimz NowiNmovz p&gnat ksawah inland 


wkp oceah amt* m&c. 


imzurtum wmzocxjE coin 

^ x^i^camAHA HALfifxmrANP ■ 

r EFfOgfAT WE IA9T- 
FmfiVSA l+5,EUMPHtt 



Unit rii tmh H AmnumK lh+ion*i X HAiUruInf In IU nr / Smith ■ liittmnlimiij Ih-tall Titbunr . I'np.*wuil SfK r!* /)irtn<7Wap' W. 

RYDERiCU P *97 1 


YckuOA ChunicJil I 
HonsMn 1. Yokohama 0 
Yomhm ft Hiroshima 3 

Seibu 6. Orix 5 
Kinfelsu A Doid 2 
Lotte ft Nlpaon Ham 2 

YakuB 2, ChunkM 1 
Hiroshima 1 Yomlun 1 
Yokchamo 2. Hanshin 1. 10 Innings 
Seen 9, Orta 7 
Lurie 7. Nippon Ham I 
Dotei I, Kintetsu 1, 1 2 Innings 



Landing European standings for me 
Ryder Cup to be played Sept. 26-28 at 
VWdenra* In Socogronde, Spain. European 
captain Sewe Baffeatem will announce the 

teem iwd Thursday. 

1 • Ctrin Momgomerte Britain, 920565 points 

2. Dairen CtorVe, Britain. 994,813 

3. Bernhard Longer. Germany, 529438 

4. Ion Woosnom. Britain. 514.059 

5. Pcr-UIrtk Johansson Sweden 481440 

6. Ltx Westwood, Brttola 46ft 153 

7. Ignooo Corrida Spain. 371496 

8. Thomas B)om. Denmark. 361449 

9. Costanfino Rocca. ftaty. 352. XI? 

>a Miguel Angtri Martin Spate, 324400 

1 1 . Jose Morin Otazatol Spain. 321.396 

12. Padralg Harrington. Ireland. 306497 

13. Paul Broodhurst BrfhSn 294.202 

U. Jooklm Hoeggmm Sweden OOM 0 
»S. Roger Chapman Britain, 247.247 

Higamitsu KBC Augusta 

Major College Scores 

' N. CoraXno St. 32, Syracuse 31. OT 
Pittsburgh 45, SW Louhtana 13 
Vrigiitt* Teen 59, ftffgorc 19 
West Vtattma 42, Marshall 31 
Alabama 42. Houston ?7 
Florida 21. Souttwm Miss. 6 
Georgia 3ft Arkansas SI. 7 
Kentucky 3ft Loorsvtni? 24 
Loaisnna Ted) DO, BcwDng Green 23 
Mississippi 24, Cent F ton da 21 0T 
Mbstsslppi St. IX Memphis 10 
Manteim 24. Morgon SL 14 
Tennessee 52. Tnos Tech 17 
Vamtorbio 79, Nottt Tans 13 
WtflJam ft Mary 31, Hampton II. 6 
Nebraska S9. Akron 14 
OUahoma SI. 21. (otto St. M 
Miami 45. Bcylar 14 
Tnas Southern 32. Pimne View 16 
Air Forte 14. Idcho 10 
Arizona St. 41. New Mexico Si. 10 
CatorodoSL4S.Ne«Ha 13 
Utah St. 21. Utah t4 
Washington 51.37. UCLA 34 

Too 25 College Results 

Lending Una) score? Sunday In 100 mWon 
ywi. *847,000. HtsamKMi KBC Augusta on 
the 7.1S4-yard (ftSIIMnotor). pur-72 Koya 
Golt Chib couth In fTDSHMA, Japan: 

“ Ju mbo" Oiolu, Jap 65ft7-6747-266 

Toichi Tcshlma Jap. 
T .Fukuzawa Jap. 

S Conran. Australia 
K.Masuda Jap. 
'’Jcf'Ozoki Jap. 
■kuo Shirahama. top. 
Himyukj Fujita, jpp. 
T. Nainjima jap. 

1 Walonobe, Job. 

M. him mg, 
T.Manjyon^, j nB . 

72- 70-69-67— 278 

69- 7065-74-278 
7169-7069 — 779 

67- 71-73-69—780 

68- 71-69-72— 2H 

70- 71 -70-71-282 

71- 7268-72-283 

Real Madrid I Atletico Madrid l 
Ovtedo 2, Merida 0 
Cetto ft Zaragoza 1 
Atttottc de Bllboo 1, Esponyol 3 
Racing de Sariander i. Sotamanco 0 
Mallorca ft Valcncio l 
Compostela ft Spoiling de Gtjon O 


VfL Bochum I, FC Kaiserslautern 3 
Heritor Berlin ft Hamburger SV 2 
VfB Stuttgart Q. Borusslo Dortmund 0 
Scholhe ft Borussw Mocnchengladbocti 0 
FC Cologne 5. VfL Wolfsburg 3 
Werder Bremen ft Boyer Leverkusen l 
Honso Rostock 1. Bayern Munich 3 
Karlsruher SC 1. MSV Duisburg 2 
STANDINGS: FC Kaiserslautern 13 
points,- Bayern Mumch 10: Sdtalke 5b Borus- 
sia Dortmund ft VfB Stuttgart ft- Kortsniher 
SC 7. MSV Duisburg 4.- Honso Rostock 7; FC 
Cologne 7: VR_ Wolfsburg 7. Bayer Lev- 
erkusen ft Moenchengtadboch t > Amnraa 
BkSofeidfc Hamburg crSVi Werder Bremen 
5; Vfl. Bochum 4.- I860 Munich 3; Heritor 
Berlin 2. 


Arsenal ft Totten horn 0 
AjranVMa). LccdsO 
Chdsea A Southampton 2 
.Crystal Palace 1. Blackburn 2 
Derby I, Bor&Iey 0 
Manchester United X Coventry 0 
Sheffield Wednesday 1, Leicester!) 

West Ham X Wbnbtodon I 
STMOMOS: Blackburn 1ft Manchester 
United 13 potato- West Hum Mb Cltebea ft 
Arsenal ft Leicester & Tottenham 1; New- 
amlte ft- Crystal Palace ft Barnsley ft- Liv- 
erpool 5; Coventry ft Bolton ft- Loed9 4; 
ShofftoW Wednesday * Derby 3r Evarion 1 
Southampton 1- Aston VBa * Wimbledon 2. 

Tampa Boy ft Hew England 0 
Cotombtrs 1 Ln Angeles 0 
erutomosi Eastern Cartoranca: D.C 
4ft Tampa Bay 3ft Columbus 32. New Eng- 
land 28. HY-NJ 25. Western Corteronce: 
Kamos City 41 Colorado 3ft Dallas 30r Los 
Angoles 2ft- San Jose 7ft 

Nornibta I, Zambia 1 

.. FU ** L SWIDTOS: Zambia B points; 
Kami b to u Mozambique S: Tanzania ft 

womsn's amoua - 


Mogul Serna Spain, det. Kknberly Po ( 16 te : 

UX, 6-ft 6-3. <; ■ -;i % ’ 

Arantxa Sanchez Vicarto (10), Spiftk def. j 
Alexandra Fusai Franca 6-2 6 - 1 . ' . 

Mory Joe Fernandez 112 ), U5.dat Paott- 
Suarez.Argmana. 6 - 1 . 6-2 ■ ’» . 

Rachel McQuSaa AusttnCa, def. Gmehttb . 
Marttoez (7), Spaftw 6-2 7-5. ' r '- 

MarttnxHIngis (11, Switzerland, def. Elefla 1 ‘ 
Ukhovtoeva Russia, 7-ft 6-2 u 

FtorenciaLDbot Argentina def. QJga Barf' . 
bonscJUkova Belara* 46, 76 (7-0). 6-1. “J - 
Lindsay Davenport (6), UJ. deL PottiM 
5chrrydec. Swrizertand. 1-ft 6-1, 6-4. 

Jana Navotno (3), Czech RepubSe. deb*- ■ 
Mirjona Luck. Croaba 6-2 6-7 (3-7), 6-3 j ' 

Richard Krajicek, Nertteriands. def. Aiexi % 7- 
Conctjo (o), Spain, wafcover. ■ -v*-. 

Greg Rusedstt Bntata def. Jens KMpp- : _ 
schikL Germany, 76 (7-5), 6-1 6-1. " Jl 
Petr Korda (15). Czech Republic, def. Mar-' 

•to Oomrn. Czech Rnpubfic 46 6-ft 6-ft 7-ft, 

Pera Sampras (1 1. U5- def. Alex Rodules- * 
cu. Genuony. 6-ft 66 6-4. . -• 

Donlel Vocek, Czech R, def. Mark PtoEft » 
poussis 042 Austro Ba 76 (76). 7-5. 6-2. 

Scott Draper, Australia def. Jeff Tnronga* 

U^. 76 (86). 36 26, 66 66. 

Felix Mamma (12). Sp* def. John van Lot- 
turn. Nett. 6-710-7). 6-2 46 76 17-5). 6-2 * 
terras Bjorkmon, Sweden, def. Gusfawi' 
Kuertm (9), Braztt6-ft6-l. 7-S. 

*wt>AY's ftznnn 


Venus WMSams. US, def. JoarmeOe., 
Kruger, South Africa 6-2 6-3. 

Monica Mas 12 ). uj S- def. Mary Pierce . 
!9J, Franca 16. 6-2, 6-2 

Sandrine Tested. Franca det Korina Hob- 

surtava. Slovakia M. 46. 76 (71). 


Patrick Rafter fl3), Austrafia def. Lionel - 
Roux Franca 6-1, 6-), 6-2 ■ ± 

Cednc Piobne. Franca dri. Leander Paeftidi i 
Imha 36, 76(7-5), 166X66. .?? 


Wom 7 a Romania 7 1 

U.S. Open 

How the tap 2S leaim En The Associated 
Prats' co fl aga foottAl poll fared das week: 

No. 2 Honda U-8] bool Southern Mhsiv 
wpoi 71 6. No. * Temena* tl-0l beat lews 
Teens? 17 Ha.6Nebrasln(l4] tmdAkion 
59- 14. No. 9 Ohio State (1-0) beat Wyoming 
24-10. No. 13 Syrocrto IJ-JJ to-J to North 

- . . "w««n«irBiv»«ow 

Atatonta of Bergamo -L Bologna j 

Bona Perms? 

Em poll I. Romo 3 
Inkmozninlo ot Milan 2. Breccia I 
J wren to*, ul Tunn 7. Lecce 0 
Ln/o or Rome j. nopou o 
pKKCtwa r, AC Milan I 
Udirv-v ?. FiarritTkl u J 




tOOH {9fc Franc t Irt Notosha 

Zwrcva Bekmis. 76 17-7L 6-1 . 

Sandnne Trrtwt France, del. Elena Woo- 

flCTeG-| f 6-J w 

J^rmo StovoUo. def. Mag- 

nowia Mmeewa Bulgana 0-6. 7 -i 6-1 


i -onndlc h..«ier. 5 ainca def Tonrartnc 
Tanasuaam. Tnaitona e. 7 ( 2 - 7 ), 7 tL6-4 


Atlanta— Agreed to leans Witt G Mookle; 

Blaylock ai 4-yoar aartrad esfcnsiaiL-’ 

Named Chris Tucker trainer. ■ , 



BUFT4L0— Agreed to toms with OE Brad) , 

INDZANAPOUS-Sigwd FS Jason Befserto 
3 contract exnnsion. * - 

KAKAS OTY-Rflto««f 0T Mike Thomp, I 
son. Signed 0L Glenn Pqrker to 3-ynar am - 1 

Miami— E xtended ihc contract of C Jotwi 
Back through 1998, . 

PHILADELPHIA— Released S Btahta Mc£h 

TAMPA 8at— R eleased WR Nlgea Carter, 


anahcim— signeg 0 Darren Van Impe to 2 - 
* car contract. 

n^, 0S - A o'*“ir T,w, * d F DimW Knrtsttdi ■ 
and c, Byron On h>e to Boston tor C Jozef * 
Stempel RW Sandy Mogcr and a 1998 4ft.- 
round dratt choice. * 


PAGE 3' 


PAGE 31 




iookie Shines 
igain for Florida 

\temandez, Defeating Toronto , 
>ifb Unbeaten Record to 9-0 

The Associated Press 

Livan Hernandez, a Cuban 
okie, improved to 9-0, and 
e Florida Marlins com- 
eted a three-game sweep of 
- jromo oq Sunday with an 8- 
-victory ova: the Blue Jays 
i their home field. 

' The Blue Jays observed a 
oment of silence prior to the 
irae in memory of Diana, 

Sunday's Bj 

rincess of Wales, killed Sun- 
ay morning in a car crash. 
Hernandez became the first 
-tokie to win his first nine 
ecisions since Whitey Ford 
f the New York Yankees in 
950. The right-hander also 
et a club record with six 
traigbr strikeouts as Florida 
■ von for the seventh tune in 
itne games. 

.. -Hernandez; who defected 
rom Cuba in 1995, matched a 
■areer-high with eight 
-trikeouts. He allowed seven 
its in 7% innings of his 12th 
lajor league start 
. Edgar Renteria went 3-for- 
1 with a run-scoring single 
ipd Gary Sheffield homered 
'or the Marlins. 

. Tigers 2, PhUBos 1 Justin 
- fhompson outduefed Mark 
Leiter and Deivi Cruz had 
hree hits for the Tigers as 
hey beat Philadelphia in De- 

Thompson gave up a run on 
•.ix hits in 7% innings, strik- 
ng out seven. He was 0-2 in 
hree starts since a complete- 
*ame, 4-2 victory Aug. 10 at 

1 Leiter, who had won four 
his last six starts, allowed 
wo runs on seven hits in sov- 
iet innings. The former Tigers 
itcher matched his season 
igh with nine strikeouts. 

The Tigers scored twice in 
Lhe fourth inning. Trayis Fry- 
.-nan hit a leadoff double, 
-noved up on Bob Hamelin’s 
jingle and scored on Melvin 
Sieves’ sacrifice fly. 

Hamelin took second on 
Raul Casanova’s grounded 
: ye fore Cruz flared a single 
jver second baseman Kevin 
Sefcifc, giving die Tigersa2-0 

! The Phillies got their only 
■un when Rex Hudler 
loubled and scored on Scott 
lolcn’s single in the sixth. . 

Indians 9, Cobs 5 In Clev- 
eland, Charles Nagy looked 
eady for September, and 
Aatt Williams extended his 
utttng streak to a career-high 

17 games with two run-scor- 
ing singles as the Cleveland 
Indians beat the Chicago 
Cubs 9-5. 

_ Nagy (13-9) rebounded 
from a poor start, allowing 
one earned run and nine hits 
in seven innings. He im- 
proved to 48-20 — third-best 
m the majors since 1994 be- 
hind Baltimore's Mike Muss- 
ina and Atlanta's Greg Mad- 

The Indians led 8-0 after 
five innings. The Cubs got on 
the scoreboard in the sixth on 
Dave Clark’s RBI single, and 
added an unearned run in the 

Cleveland's Jeff Juden, ac- 
quired from Montreal on July 

*■» i ■ .» ■* 

Without Purcells, 
Patriots Still Win 

T-d MhUu/ Fraor'-IVw 

Mets’ catcher Todd Pratt talcing a dive trying to tag the Orioles' Jeff RebouJet, who had already touched home. 

Atlanta Shuts Down Boston, 15-2 

h! In Victorious Homecoming, Braves Rap Red Sox for 19 Hits 

got only two batters out in the 
eighth and allowed a two-run 
homer to Dave Clark. 

Marquis Grissom hit his 
10th homer in the eighth off 
Ramon Tatis, giving Cleve- 
land a club-record 50 homers 
in August and shattering a re- 
cord that had stood since 

Anticipating a tight. Na- 
tional League-style game, the 
Indians reverted to American 
League strategy in the first 
After Brian Giles singled and 
Omar Vizquel walked. Kevin 
Seiizer sacrificed. Both 
scored when Tim Thome hit a 
sacrifice fly and Matt Wil- 
liams singled. 

Cleveland scored three 
more runs in the second. 
Seiizer drilled a two-run 
double, and Thome seat 
Seitzer home with a single. 

Williams hit another run- 
scoring single, and Sandy 
Alomar lined an RBI double 
to right Tony Fernandez’s 
sacrifice fly made it 8-0. 

■ Indians Get Roberts 

Cleveland, seeking a 
speedy, versatile leadoff hit- 
ter for the stretch drive, ac- 
quired Bip Roberts from the 
Kansas City Royals for a 
minor league pitcher Sunday, 
The Associated Press report- 
ed from Cleveland 

Roberts,' 33, was baiting 
.309 with one home run, 36 
RBIs and 15 stolen bases with 
Kansas City. A switch-hitter 
and career .297 hitter, 
Roberts could give the AL 
Central-leading Indians the 
spark they have lacked in the 
leadoff spot since Kenny 
Lofton was traded to the At- 
lanta Braves. 

The Associated Press 

Fred McGriff homered 
twice and Nomar Garciaparra 
didn't get a hit at ail as the 
Atlanta Braves continued to 
exact their revenge on the 
team that chased them out of 

fectly but came down empty 
handed as a fan pulled the ball 
over the wall, giving Fletcher 
his 17th homer. 

It also gave Yankees fans a 
flashback of last year’s play- 
offs when 12-year-old Jeffrey 

Boston, beating the Red Sox, . Maier helped win a game for 


Garciaparra's hit streak 
ended at 30 — a record for 
American League rookies 
and tied for the longest in the 

majors this year — but short 
of Benito Santiago's rookie 
record of 34. 

Kevin Millwood got Gar- 
ciaparra to hit three fly balls, 
one of them a sacrifice fly, 
and reliever Mike Gather got 
him on a line drive to left in 
his last at-bat, in the eighth. 

• A dav after winning, 9-1, in 
their first game in Boston 
since the franchise moved to 
Milwaukee in 1953. Atlanta 
clobbered the Red Sox again. 
The Braves got 19 hits and 
matched a season-high for 
runs, with Chipper Jones ty- 
ing an Atlanta record by scor- 
ing five times. 

McGriff was 4-for-5 with 
five runs batted in. 

Expos 7, YankoosS III New 
Yoric, Paul O’Neill reached 
tip, a fan reached out and 
Montreal’s Danin Fletcher 
circled the bases. This time, 
the right-field railing at Yan- 
kee Stadium took one away 
from the home team 

Pedro Martinez pitched a 
five-hitter, and Fletcher hit a 
three- run homer, thanks to 
help from a fan in right. 

O’Neill timed his leap per- 

New York. 

As first base umpire Mike 
Reilly signaled home run, 
O'Neill threw his arms up in 
disgust and yelled toward the 
young man. who celebrated 
his catch before being ejected 
by stadium security. 

Dodgers 11, M ar mara 2 Ra- 
mon Martinez held Seattle to 
three hits in six innings and 
singled twice, and Mike 
Piazza hit a three-run homer 
Saturday to lead Los Angeles 
over visiting Seattle. 

Giants 7, Angels a Shawn 
Estes became the second NL 
pitcher with 18 victories and 
J.T. Snow hit a pair of two- 
run homers as host San Fran- 
cisco beat fading Anaheim. 

Estes (18-4), who has won 
his last six decisions, allowed 
three runs on five hits in six 

Marlins 4, Blue Jays 1 In 

Toronto, Alex Fernandez al- 
lowed three hits in eight in- 
nings for Florida. Fernandez 
fl 7-9) gave up one run. struck 
oui seven ana walked one. 

Mats 13, Orioles g Bernard 
Gilkey had three hits, includ- 
ing a three-run homer, as the 
Mets ended Baltimore's tun 
of success against New York 

Gilkey tied his career high 
with four RBIs, and Luis 
Lopez drove in a season-high 
three runs for the visiting 
Mets, who used a 19-hit at- 

Syracuse Falls to North Carolina State 

Vo Problems for Florida, Nebraska and Tennessee in Opening Games 

Waco, Texas, Edgemn James 
scored on runs of 23, 5 and 37 
yards as Miami piled on the 
zushing yardage and spoiled 
Dave Roberts's coaching de- 
but After tailback Dyral Mc- 
Millan strained a hamstring in 

New York Times Service 
— One week after Syracuse 
.u -vpened the college football 
** "'.eason by thrashing Wiscon- 
sin in the Kickoff Classic, the 
t 3ih-ranked Orangemen lost 
n overtime, 32-31, to North 
rarolina State, which fre- 
shed last season at 3-8. 

• North Carolina State won 
he game Saturday with a 2- 
xtint conversion when Jamie 
3amette completed a pass to 

Coiled i Football 

-,rrry Holt, who was streak- 
-js from the right side into the 
left comer of the end zone. 

"Two plays before we 
scored, I said we’re going for 
wo," said Mike O’Cain, the 
vVolfpack coach. "I didn’t 
mow what defense they 
•vould be in, bot what I felt 
Vas they weren’t confident. 
Hey’re thinking: ‘We just 
’Ot hiL We just got a touch- 
lown scored against us. This 
jame should have been over a 
ong time ago. We’re 25- 
wint favorites. This game 
shouldn't be like this.' 

The Orangemen, coining 
mo the game after a 34-0 rout 
?f Wisconsin last Sunday, 
umped to a 14-0 first-quarter 
lead, scoring on the first play 
Tom scrimmage with a 67- 
sard touchdown pass. 

* * 'We started. O.K., but even 
is the game was going on, 
.ven though we were win- 
ling, I knew something bad 
vas going to happen,” said 
ason Walter, a Syracuse de- 
ensive player. 

The Wolfpack never rolled 
»ver, despite the low expect- 
ations. They battled back 
rom deficits of 14-0 and 17- 
0. and came back ag»m 
vhen the Orangemen scored 
! 73-yard touchdown on a 
amt return with 9 minutes 5 1 
• play. 

And they were facing elim- 
nation in the final minute of 
emulation when Syracuse 
wished down to the 2-yard 

line with 30 seconds left 

As freshman Dee Brown 
tried to reach over the goal 
line Tony Scott stripped the 
ball out of his . hands. The 
Wolfpack recovered and ran 
out flie clock, forcing the ex- 
tra session. 

In other games. The Asso- 
ciated Press reported: 

No. 2 Florida 21, Southern 

Mississippi g In Gainesville, 
Florida, Doug Johnson, who 
replaced the Heisman Trophy 
winner Danny Wuerffel in the 
Gators’ Fun 'o’ Gun offense, 
was shaky but still threw for 
two touchdowns and ran for 
another. Johnson was 17-of- 
34 for 231 yards and three 
interceptions. He had TD 

passes of 25 and 18 yards. 

No. S TuvMstM 52, Tbxas 
T«ch io Peyton Manning, the 
Tennessee quarterback, tied 
die single-game school record 
for TD passes last accom- 
plished by Heath Shuler in 
1993 before the home crowd 
in Knoxville. Manning was 
26-for-38, with one intercep- 
tion, before leaving with 414 
minutes left in the third 
quarter. He threw for 310 
yards and five touchdowns. 

No. 6 Nebraska 59, Akron 14 
It was another minor team, 
another breeze for Nebraska 
as Scott Frost ran for 123 
yards and two TDs, and Ah- 
man Green scored twice. 

No. 14 Kami 45, Baylor 14 In 


West Virginia linebacker J* - 

the first quarter, James came in 
and finished with 120 yards. 

No. 16 Alabama 42, Hous- 
ton 17 The Mike DuBose 
years began as Curtis Alex- 
ander ran for three touch- 
downs, the 16th-ranked Crim- 
son Tide built an early 28- 
point lead to beat Houston in 
Birmingham, Alabama. 

“I didn't think a football 
game could be that long," said 
DuBose, the new Alabama 
coach. “We were up 28-0, and 
I thought the game was over 
with, but Houston didn’t" 

Washington State 37, UCLA 

34 UCLA was stopped at the 
1-yard line with 2:48 left and 
Washington State came away 
with a 37-34 victory in Pull- 
man, Washington. TTie Cou- 
gars’ Ryan Leaf was 17-of-32 
for 38 1 yards and three touch- 
downs. Skip Hicks led UCLA 
with 190 yards rushing and 
four TDs. 

Morehouse 24, Morgan 

State 14 Doug Williams, the 
former Super Bowl MVP, 
made a successful coaching 
debut when Morehouse 
scored two TDs in a 20-second 
span of the fourth quarter for a 

\5ctoty in Atlanta. 

Mississippi State 13, Mei* 
mphis id In Starkvilie, Mis- 
sissippi, Brian Hazelwood 
kicked a career-best 53-yard 
field goal on the final play to 
win over Memphis. 

West Virginia 42, Marshall 
31 Marshall, led by star wide 
receiver Randy Moss, made 
its move to Division I-A by 
scaring West Virginia before 
losing in the first game be- 
tween the teams in 74 years. 

Kentucky 38, LoinsviUa 24 
In Lexington, Kentucky, Tim 
Couch completed 36 of 50 
s for 398 yards and four 
to give the Wildcats a 

tack to improve to 3-8 in in- 
ter) eagoe play. 

The Onoles were 5-0 this 
year against New York teams, 
taking four from the Yankees 
before beating the Mets on 

Cuba 9, Indians 4 In Clev- 
eland, Doug Glanville 
homered and had three hits, 
and Mark Grace hit his 10th 
homer and a run-scoring 
triple as last-place Chicago 
beat the first-place Indians. 

White Sox 9, Astros 2 Jason 
Bere stayed unbeaten in three 
starts since coming off the 
disabled list, allowing only 
Derek Bell's 12th homer in 

pitched five-hit ball over sev- 
en innings as Pittsburgh ended 
its three-game losing streak. 

Royals 16, Cardinals 5 Jer- 
maine Dye hit a double and a 
grand slam in one inning for 
host Kansas City. 

After Dye’s grand slam put 
the Royals on top 14-1 in the 
bottom of the fourth. Mack 
Petkovsek hit Johnny Damon 
with a pitch and Damon 
charged the mound. Both 
benches and ballpens came 
running onto the field after 
Damon charged. 

Rockies 4, Athletics 3 In 

Denver, Walt Weiss singled 
in the winning run from third 
the second and Jeff Bagwell’s ‘ with one out in the ninth for 
37th in the seventh, in six-plus Colorado's fifth straight vic- 

The Associated Press 

Drew Bledsoe claimed he 
was more comfortable with- 
out Bill Parcells. He wasted 
little time showing it Sunday. 

Bledsoe ran the offense of 
new coach Pete Carroll with 
precision, throwing touch- 

HFL Boundup 

down passes to four receivers 
in the first half and leading the 
New England Patriots to a 4 1 - 
7 victory over the San Diego 

Rarely in last season's 
surge to die Super Bowl — 
where they lost to Green Bay 
— did the Patriots play as well 
as they did Sunday. 

In the first half, the offense 
scored on five of its six pos- 
sessions, while the defense 
recovered two fumbles, 
forced four punts, sacked 
Stan Humphries three times 
and allowed no points. And it 
knocked Humphries from the 
game with a dislocated 
throwing shoulder- in the 
fourth quarter. 

But Bledsoe was the key to 
the Patriots’ dominant start of 
their defense of the AFC 

He completed 26 of 39 
passes for 340 yards, with 
touchdowns to Ben Coates, 
Terry Glenn, Sam Gash and 
Keith Byars. By halftime, he 
was 19-of-24 for 271 yards 
and had tied Babe Farilii ’s 30- 
year old team record with four 
scoring passes in a half, while 
the Patriots outgained the 
Chargers 323 yards to 47. 

Vamags 34, Bills 13 Die 
Todd Collins era began the 
same way Jim Kelly’s did 11 
years ago — with a loss for 
the Buffalo Bills. 

Robert Smith gained a ca- 
reer-high 1 69 yards on 16 car- 
ries and broke loose on a 78- 
yard touchdown run early in 
the fourth quarter as the Min- 
nesota Vikings beat the Bills, 
34-13, in a season opener. 

Minnesota linebacker Jeff 
Brady put Buffalo away when 
be picked up a fumbled snap 
and ran 30 yards for a touch- 
down with 11:03 left in the 

Minnesota's Brad Johnson 
completed 17 of 30 passes for 
218 yards and two touch- 
downs io Cris Carter, who had 
eight catches for 119 yards. 
Greg Davis kicked field goals 
of 21 and 43 yards. 

innings for host Chicago. 

pwnias 2 , Tigers o In De- 
troit, Matt Beech pitched 736 
innings of six-hit ball and Phil- 
adelphia ended a nine-game 
interleague losing streak. 

Twins 4, Reds 1 Paul Molit- 
or broke a 1-1 tie with a two- 
out single in the sixth inning, 
and Ron Coomer followed 
with a two-run homer for 

pirates 3 , Browers 1 1n Mil- 
waukee, Mark Smith went 4- 
for-4 with a homer and a 
double, and Jon Lieber 


Neifi Perez, whose error in 
the top of the ninth allowed 
the A’s to tie the score, led off 
the bottom of the inning with 
a single, and went to second 
when center fielder Scott 
B rosins hobbled the ball. 

B»bw 4, Rangers 1 Andy 
Ashby allowed one run in 
eight innings in winning for 
the first time in eight starts 
since July 20 for San Diego, 
playing at home. The victory 
was the Padres’ first in three 
games against the Rangers. 

Slum CaMVAgennr FWKt^Pwar 

GOING BACK IN BOSTON — Bill Haselman, left, 
wearing 1908 Red Sox uniform; Atlanta’s Jeff Blaus- 
er in Boston Braves* 1912 uniform. The Braves, who 
left Boston in 1952, returned for an interleague series. 


Alex Enardi of Italy i & 
he become the first 

Indy car: 

6-7 September, LIVE, 
PPG CART World Series, 
Monterey, USA 
Alex Znanfi wriU Bft the crown 
ff he can score at the Laguna 
Seca Raceway one of the 
worlds great racetracks 


6 - 21 September, LIVE, 
The Tour of Spain 

After one of the best races in 
recent memory for the Tour 
do France, the action switches 
to the equaBy grueffing 
journey through the Spantsh 



4 - 7 September, LIVE, 

The World Championships, 

Aiguebetette Lake Is the venue 
as France hosts the World 
Championships tor the first time 


BASEBALL Expos Gel a Helping Hand in the Bronx p.3 1 SOCCER Ronaldo Overshadowed as Italian Season Starts p.3Q 


PAGE 32 


World Roundup 

British Postpone 
Sports Events 

British sports mourned the 
death Sunday of Princess Diana as 
the day’s top soccer game — Liv- 
erpool vs. Newcastle United ■ — 
was postponed and other events 
were put off or marked by mo- 
ments of silence. 

The U.S. Tennis Association 
also decided to observe a mo- 
ment's silence at the U.S. Open on 
Sunday, before the fourth-round 
match between Andre Agassi and 
Mark Woodforde. 

The Division One match in 
England between Crewe and Port 
Vale was also postponed, as was 
the Scottish Premier Division 
game between Kilmarnock and 
MoLherwell. The Scottish League 
also postponed the Monday match 
between Celtic and Rangers. 

The England and Wales cricket 
boards went ahead with Sunday 
league matches but observed two 
minutes of silence at the start of 
every match. Northamptonshire, 
which was due to play Durham, 
ignored the cricket board’s instruc- 
tions and postponed its match 

“We have a tot of connections 
with the Spencer family and a lot of 
buildings around here are named 
after them,” a spokesman said. 

A motor racing festival at Sil- 
verstone in central England was 
also postponed, and officials at the 
Hamilton Park horse racing 
course held a minute’s silence be- 
fore be ginning the day's racing. 

Horse racing officials said the 
schedule would go ahead Monday 
as planned but said racing would 
be canceled on die day of the 
princess’ funeral. ( Reuters ) 

Allem Chases First Win 

GOLF Fulton Allem of South 
Africa and David Sutherland, both 
seeking their first PGA Tour vic- 
tories of the year, shared a one- 
stroke lead after Saturday’s third 
round of the $1.3 milli on Greater 
Milwaukee Open. 

Allem, who started the day three 
strokes back, fired a 7-under-par 
64, two shots off the course record, 
to move to 13-under 200. Suth- 
erland, who had been two shots 
back after 36 holes, shot a 6S.(AP) 

Wales Shatter Records 

RUGBY UNION Wales ran 11 
tries past Romania in a record- 
breaking 70-21 victory in Wrex- 
ham on Saturday. 

It was the first Welsh inter- 
national away from the national 
ground in Cardiff in more than 40 
years. The Anns Park is being 
rebuilt for the 1999 World Cup. 

Wales surpassed the nine tries 
and 55 points it scored against 
Japan in 1993. Arwel Thomas 
scored 23 points and underlined 
bis credentials for the Welsh 
stand-off half position on the day 
that one of his predecessors, 
Jonathan Davies, announced his 
returemeoL tReuters) 

Maradona Faces Hearing 

soccer Diego Maradona will 
appear at a disciplinary hearing of 
the Argentine Football Associ- 
ation on Tuesday following his 
latest positive drug test. The as- 
sociation temporarily banned 
Maradona before the hearing. The 
final verdicr will be delivered after 
a second test of the sample, as 
requested by Maradona. It is 
scheduled for Wednesday. 

The association also notified 
the federal police, who apparently 
confirmed widespread suspicions 
that the drug in question might be 

Maradona has sequestered him- 
self in a friend's apartment in 
Buenos Aires. Carlos Fren, an old 
friend who visited Maradona on 
Saturday, said: “Diego spent the 
night alone and very de- 
pressed." (AFP) 

Ballesteros I*uts Off Ryder Cup Choice 

By Ian Thomsen 

Intenwrionot Herald Trihune 

The irresistible announcement was put 
off for another few days, but no matter — 
it seems more than likely that Jose Maria 
Olazabal and Nick Faldo will be named 
to the European team for next month's 
Ryder Cup at Valderrama, Spain. 

The expected decision was post- 
poned because of a wrist injury to 
Miguel Angel Martin, a Spaniard who 
earned the 10th and final position on the 
team as the yearlong qualifying race 
ended Sunday. Martin hasn’t played 
since the British Open six weeks ago. 
Countryman Seve Ballesteros, the 
European team captain, has given Mar- 
tin until Thursday to prove his fitness. 

If Martin is able to play — and the 
odds are against it — then Ballesteros 
will have little choice but to spend his 
two “wild card" picks on Olazabal and 
Faldo, major champions both. 

If Martin cannot play, then many 
European fans will say all the better. 
Olazabal, currently ranked 1 1th in the 
Ryder Cup standings, will move up to 
fiU Martin's automatic spot Ballesteros 

could then round out his 12-man team 
by choosing Jesper Pamevik of Sweden, 
who plays on the American tour. Others 
have been mentioned for that spot, but it 
will be hard for Ballesteros to overlook 
this year’s British Open runnerup. If 
Pamevik were American, he would 
have qualified automatically for the 
American team based on bus perfor- 
mance this year on the U.S. Tour. 

Of the nine players certain to rep- 
From Se 

resent Europe from Sept. 26 to 28 at 
Valderrama, five were on the team that 
won die last Ryder Cup. in 1995 — 
Colin Montgomerie and Ian Woosnam 
of Britain, Bernhard Langer of Ger- 
many, Per-Ulrik Johansson of Sweden 
and the I talian Cos tan lino Rocca. 

Four of Ballesteros's players will be 
making their debut in golf s most intense 
competition — Darren Clarke and Lee 
Westwood of Britain, Ignacio Garrido of 
Spain and Thomas Bjom, who finished 
eighth in the rankings to become the first 
Dane to play in the Ryder Cup. 

These four rookies will have to play to 
a surprising level to beat a U.S. team of 
six major champions, including three 
from this year alone — the world No. 1 

Tiger Woods, Justin Leonard and Davis 
Love 3d. Manin, if he becomes avail- 
able, would be Europe's fifth rookie — 
though he might have an advantage as a 
Spaniard playing on a Spanish course. 

The final weekend pf Ryder Cup 
qualifying produced little of the ex- 
pected drama as Robert Karlsson of 
Sweden won the second tournament of 
his career, beating Carl Watts of Britain 
after three holes of sudden death in the 
BMW Internationa] Open in Munich. 
Each had birdied the 72d hole to finish at 
the ridiculous score of 24-under par. 
Montgomerie was third, a stroke be- 
hind, with a 265 total. 

Olazabal, who barely made the 
halfway cut. finished at 15-under. He 
retained his No. 1 1 position on the Ry- 
der Cup bubble, but could not pass 
Martin. Olazabal made the obvious 
complaint that the course had failed to 
reward superior shotmakers on one of 
the most important weekends of the 
European season. 

“At the end of the day it’s more or 
less who makes the putts." Olazabal 
said. “I would rather have had a longer 
course and a more difficult one. We 

need to get to tougher courses and ones 
in better condition if we want to im- 
prove our quality. The Americans play 
on much better tests of golf. That's our 
goal and once we get that the whole 
European tour will benefit from it. We 
have to make a serious effort.” 

The Ryder Cup became interesting in 
1979. when Ballesteros was among the 
first group of continentals invited to join 
British and Irish players against the 
dominant U.S. team. It became riveting 
in 1985 when the Europeans won the 
Ryder Cup for the first time since 1957. 
Europe has won or retained the Cup four 
of the last six times. 

An important component of Europe’s 
upset 14*A-13V4 victory two years ago 
was the pressure the Americans fell as the 
home team with a two-point lead on the 
final day of singles. That European team 
possessed the more dynamic leadership 
in Faldo. Woosnam and even Ballesteros, 
though by then the Spaniard couldn’t find 
the fairway with his drives. 

This year the charisma seems to have 
swung to the side of the Americans. No 
longer can Europe claim to have the best 
players in the world, as seemed to be 


Jose Maria Olazabal lining up a 
putt Sunday, when be shot a 67. 

true in the late 1980s and early 1990s: 
Faldo has played poorly this year/ 

Longer and Woosnam were dangerous £ 
only, at European Toor events,, and.: 
Olazabal, the team’s youngest major v 

champion at 31, is concluding die first 
' fodt prbb: ; 

year of his comeback from r . 
lems that sidelined him for 18 months/^ 

: — • 1 ~'-.k 

Venus Goes Into Orbit; 
Teen Looks Like a Star 

The Associated Press 

NEW YORK — Venus Williams 
avoided the trap that catches many play- 
ers after a big upset and rolled into the 
quarterfinals of her first U.S. Open. 

Williams, coming off a victory over 
No. 8 Alike Huber, beat 45th-ranked 
Joannette Kruger. 6-2. 6-3 , on Sunday in 
another strong performance that showed 
off her power, poise and newfound ac- 

Often foe “unforced error kid,” as 
Williams referred to herself, the.6-foot- 
1 (1.85 meter), 17-year-old is playing 
with the kind of control that can make 

U.S. OpinTinnis 

her dangerous against anyone. She 
didn't suffer a letdown, as might have 
been expected after beating someone 
like Huber, and came out pumped. 

*T just feel I can make any shot on the 
court,” said Williams, ranked No. 66 in 
the world and moving up fast. * ‘I always 
felt that way. I always felt I could beat 
the men players. My parents had to 
convince me that I couldn't.” 

The way Williams handled herself on 
the court the way she smiled on 
changeovers, intimidated Kruger and 
left her awed. 

“1 think it’s great when somebody 
that age can have that confidence. I never 
bad it,” said Kruger, a South African 
who will be 24 Wednesday. “I don’t 
know where she gets it, but she has it. 

“I think maybe she was taught from a 
young age that she’s going to be great 
She has performed tremendous for the 
amount of matches she's had.” 

Williams broke Kroger in the first 
game of the match, then cruised through 
the first set in 27 minutes while serving 
at up to 113 miles an hour (182 kph). 
The second set went almost as smoothly 
as Williams broke Kruger twice to open 
a 3-0 lead. 

In a match that blended baseline ral- 
lies with frequent net attacks, Williams 
was both more aggressive in going for 
winners and less prone to mistakes. She 
hit three fewer errors than Kruger’s 30, 
and drilled 2 1 winners to Kruger's 10. 
Williams also won nine of 10 points on 
her approaches to the net, while Kruger 
convened 10 of 17. 

Until this tournament, Williams’s 
style had been mostly a repealed pound- 
ing of balls on every point. Players got 
used to that, and Williams frequently 
broke down with errors. 

“I realized I have to mix it up, take 
some pace off,'* she said. “A lot of 
other times in the pasr, I would have 
□ailed a return in the match. 1 just 
learned a lot in this tournament.” 

Williams nearly didn't come to the 
Open because her father-coach, 
Richard, who has tried to restrict her 
schedule, was against it. 

“I wasn't going to play the Open 
until four days before," she said. “My 
dad wouldn’t let me. But I finally con- 
vinced him.” 

What changed his mind? 

“A little bargaining,” she said. “It 
was hardbalL I’m glad I got a chance to 
play, and I think my dad is, too.” 

Monica Seles, the No. 2 seed, won 
only one game in the first set against 
Mary Pierce of France, die No. 9 seed, but 
fought back to win, 1-6, 6-2, 6-2. 
Sandrine Testud of France beat Karina 
Habsudova of Slovakia, 6-3, 4-6, 7-6 (7- 
1 ). 

Cednc Pioline of France ended the 
unlikely run of Leander Paes, outlasting 
the llOth-ranked Indian, 3-6, 7-6 (7-5), 
1-6, 6-3, 6-4, in a third-round match. 
Paes saved sixth match points in the 
marathon, which lasted more than three 

Pioline broke Paes to open the fifth 
set Paes broke back in the eighth game, 
taking the game with a forehand service 
return winner that prompted a dance in 
celebration. In Che ninth. Paes saved five 
match points on his own serve, the first 
two with aces, the next with an overhead 
smash, the fourth when Pioline sent a 
forehand long and the fifth with a fore- 
hand winner. 

Patrick Rafter, the 13th-seeded Aus- 
tralian, brushed aside Frenchman Lionel 
Roux, 6-1, 6-1, 6-2, in less than an hour 
and half on the old Stadium Court “I 
wasn't really in the match," Roux said. 

Rafter has not yet dropped a set, 1 send- 
ing Andrei Medvedev, Magnus Norman 
and Roux to shockingly swift defeats. 

“I'm playing against world class 
players and having results like that, I am 
surprised.” Rafter said. 

His last two matches have each lasted 
less than 90 minutes. 

“The last two matches have been 
fantastic,” Rafter said. “Everything has 
been flowing. The serve flowed, re- 
turns, approaches.” 

Everything, however, begins with 
Rafter's serve. He handcuffed the 
Frenchman with it as he has to all his 
foes here so far. 

The strapping 6-foot. 1-inch 11.85- 
meter) right-hander dropped his sene 
against Roiln just once, marking only 
the second time in the tournament that 
he has been broken. 

“He didn’t give me j lot of to 
return." Roux said of the 24-year-old 
Rafter. “He mixed it up to the back- 
hand. forehand, down the middle. It w u«; 
very difficult for me to see v. here he's 
going to serve." 

Rafter is the lone seed left in his 
quarter of the draw. His next opponent 
will be either his Davis Cup teammate 
Mark Woodforde or Andre Agassi. 

“I’m not expecting to go and breeze 
through these guys. " Rafter said. 

f.AP. AFP. AVvi/ct.i i 

Venus Williams serving to Joannette Kruger of South Africa at the UJS. Open on Sunday. Williams won 6-2, 6-3. 

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Philippoussis Serves 25 Aces, but Loses 

By Robin Finn 

.Virr li'fl 77/nr* Service 

Day 6 of the U.S. Open brought an- 
other disappointing Grand Slam finish 
For Mark Philippoussis, as well as for a 
pair of Spaniards who had carried high 
hopes into the tournament. 

Philippoussis. seeded 14th and con- 
sidered a dark horse for this champi- 

Sampras and Hingis win. Page 30 

onship. ct »u!d m»l save himself in the third 
round Saturday . even with his 25 aces. 
The Australian, who lias yet to reach a 
Grand Slam quarterfinal despile owning 
the world's most powerful serve, lost. 7- 
6 i74i. 7-5. t\-l. to S3d -ranked Daniel 
Vaeek. a Czech- born resident of Nick 
Bol'eilieri's Florida tennis think tank. 

Joining Philippoussis on the sidelines 
was Conciiua Martinez, who reached 
the Open semifinals in both 1995 and 
1996. But Saturday, hampered hv a bad 
back rhal was exacerbated by a baleful 
altitude, the se vent Ji - seeded Martinez 

was thumped. 6-2. 7-5. by 1 00th -ranked 
Rachel McQuillan. 

“By her playing a great match and 
me not being out there 100 percent, that 
helped her win," said Martinez, who 
suspects she has a disk problem. 

Alex Corretja, another Spaniard, did 
not gel the chance to repeat his mem- 
orable performance in last year's Open, 
in which he blundered away his own 
match point and gave away a match point 
on a double fault to a nauseated Pete 
Sampras in their epic quarterfinal. The 
match, though it devastated the unseeded 
Corretja that day. inspired him to turn 
himself into a sixth-seeded contender 
who expected to play last year's Wimble- 
don champion, Richard Krajicek, at .Ar- 
thur Ashe Stadium on Saturday. 

But because of the reappearance of a 
thigh injury. Conctja never played a 
minute uf their third- round match. He 
tried to practice Saturday morning, real- 
ized he was virtually immobile and bailed 
out of the match before it began. 

"There was no way to play, because 1 
couldn't move at all.' ' said Corretja, who 
had never before defaulted from a match 

before it had begun and could not think 
of a worse place to have h happen. 
“Last year even when I had match 

point I never thought I could win a Grant! 

51am.” he said. "This year I came hezf 
thinking about going step by step, so I feel 
even worse than last year. I was waiting 
for this moment for a long time. ” 

One Spaniard faring better is Arantxa 
Sanchez Vicario. who won the Open in 
1994 but has been trying to recapture a 
winning Grand Slam sensation ever 
since. Overshadowed by teenagers with, 
bigger swings. Sanchez Vicario has ! 
vowed to keep chugging away. 

“If the attention is on the other play--. 

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can sneak around and keep winning. 
Sanchez Vicario said after moving into 
the round of 16 with a 6-2. 6-1 victory 
against Alexandra Fusai of France. 

Another victorious Spaniard was 
49th-ranked Magui Serna, who upset 
16th-seeded Kimberly Po, 6-4, 6-3. Pb 
has never passed the Open’s third round 
in seven visits, but Serna, a hard-hitting 
IS -year-old from Barcelona, did it on 
her first try. 

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