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j/{ ^ |E, WEDNESDAY, SEP TE MBER 34, 1997 



The World’s Daily Newspaper 

( so, ? er p c ^ eckin g a Muslim woman for weapons near Brcko in northern Bosnia^on Sunday as 
j mousands of refugees returned to their former hometowns to vote in municipal elections over the weekend. 

Under Heavy Guard, Bosnians Vote 

By Chris Hedges 

Hen York Times Service 

SARAJEVO, Bosnia-Herzegovina 
— Escorted by North Atlantic Treaty 
Organization troops in armored 
vehicles, buses rolled out of Sarajevo. 
They were taking Bosnian Muslims 
for a few emotional moments to vil- 
lages in which they lived before the 
war. where they cast ballots and were 
then hustled away. 

In municipal elections Saturday and 
Sunday, seen as a vital part of the 

Dayton peace accord, people across 
Bosnia voted in their prewar towns, 
many returning for the first rime to 
places they were expelled from in the 
bitter conflict among Muslims, Serbs 
and Croats. 

In towns like Srebrenica, where sev- 
eral thousand Muslim men were mas- 
sacred in the summer of 1995 by Bos- 
nian Serb troops. Muslim officials will 
probably be elected to office, although 
no Muslims now live in the area. 

And in Drvar, Glamoc and Bosanko 
Grahovo. near Bosnia's western bor- 

der with Croatia, representatives of the 
prewar Serbian majority also were set 
to be elected to power, although most 
of the Serbs have been expelled. 

Communities that do not accept the 
election results, which are not expec- 
ted before Sept 20, will have sanc- 
tions imposed on them, international 
officials say. 

But the elections, which were posi- 
med twice, appeared unlikely to alter 
losnia's partition into 'three antag- 

See BOSNIA, Page 10 

Euro Calendar Advanced 

Definitive Exchange Rates to Be Set in Spring 

By Barry James 

International Herald Tribune 

Stealth Fighter Crashes at U.S. Show 

F-117 Smashes Into House Near Baltimore After Pilot Bails Out 

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MIDDLE RIVER, Maryland — A 
U.S. Air Force F-l 17 stealth fighter that 
was participating in an air show crashed 
into a house shortly after takeoff Sun- 
day, leaving the house in flames and at 
least four people injured. 

The pilot ejected safely, and there 
were no immediate reports of deaths. 

The plane went down just after 3 P.M. 
during a performance at the Chesapeake 
Air Show at the Glen Martin State Air- 
port, said Steve Gisriel, a Baltimore Fire 
Department captain. He said that it 
crashed into a condo-marina complex in 
this suburb northeast of Baltimore and 
that all four people injured were thought 
to be in the complex. 

Sharon Schuchardt was watching the 
air show from a boat and witnessed the 

“It's something nobody in their life- 
time would ever want to experience. It 
was horrible.” Ms. Schuchardt told 
CNN. “It was huge. A total explosion." 

“It occurred during a flyover at an air 
show,” said the Defense Department 
spokesman, Ken Bacon. “The pilot is 
undergoing emergency treatment.” 

CNN repotted that there were numer- 
ous injuries on the ground, but no re- 
ported deaths. A witness quoted by CNN 
said a wing had come off the plane. 

F-117 stealth fighters, armed with 
laser-guided bombs, were used in the 
Gulf War against the most heavily de- 

fended Iraqi targets because of their 
ability to evade radar and radar-guided 

In June, a stealth fighter jet skidded 
off fee runway at Holloman Air Force 
Base in New Mexico while returning 
from a routine training mission, injuring 
fee pilot and causing more than $ 1 mil- 
lion in damage to the plane. The F-l 1 7A 
Nighthawk’s nose and main landing 
gear collapsed, base officials said. 

In July, a newly declassified report 
said that the Pentagon and weapons 
makers overstated fee effectiveness of 
fee F-117, which was touted as able to 
attack in all conditions. The report said 
fee plane had trouble in clouds or dost 
during the Gulf War. 

bourg — European central banks will 
advance by at least seven months the 
date, cm which they set fee conversion 
rates feu countries selected to join a 
European monetary union, sending the 
strongest signal yet of their commitment 
to fee introduction of a single European 

The conversion rates will express the 
value at whictrfee national currencies 
will enter the union. These currencies 
will become part of the same money and 
will be subject to the independent Euro- 
pean central bank. The rates will there- 
fore not be changed after they are es- 

Finance ministers and central bankers 
meeting here decided Saturday feat fee 
rates would be set when fee list of 
countries meeting fee entry conditions 
is announced next spring, rather than 
waiting for the start of actual monetary 
union Jan. 1, 1999, as originally 
planned. Countries will be selected on 
the basis of how they meet a set of 
economic targets this year, including 
control of public debt and deficits. 

The officials said fee decision was 
intended to reduce speculation and un- 
certainty during fee period when fee 
member countries were chosen in April 
or May and during the introduction of 
the single currency at the beginning of 
the following year. 

Meeting in this elegant spa town, the 
officials discussed some of fee technical 
problems that will be caused by the 
introduction of a single currency, such 
as fee relationship between countries 
sharing a single currency and those out- 
side the monetary club. 

The businesslike approach was itself 
an indication of the shift in focus within 
fee EU. which until now has been pre- 
occupied with political questions of 
whether the single currency could be 
introduced as planned. 

There are several reasons for fee 
change in mooch 

• Many of fee political questions sur- 
rounding the single currency were 
settled at fee Amsterdam summit con- 
ference last summer. 

• European economies are improv- 
ing, making it more likely feat key coun- 
tries, including Germany, France, the 
Benelux nations and perhaps also Italy 
and Spain, will be able to meet fee strict 
economic criteria this year that will 
qualify them for membership. 

• There is a widespread conviction 
that not to proceed with the euro could 
do immense harm to a political ex- 
periment, European union, feat has cre- 
ated wealth and helped maintain peace 
for more than 40 years. 

If monetary union were not to go 
forward as planned, “fee reactions of 
fee capital and commercial markets 
would have disastrous consequences for 
our economies,'’ said Jacques Chirac, 

See EUROPE, Page 15 

Wffl BuigraSRcuifni 

Police taking away a woman who was shouting Sunday on a street 
near the Great Hall of the People in Beijing during the party congress. 

China ’s Military Plan: 
Bid to Modernize Fast 

Analysis See New Power but Limited Threat 

By Michael Richardson 

International Herald Tribune 

SINGAPORE — Beijing’s plan to 
cut its 3.1 -million-man aimed forces 
by 500,000 in three years will enable 
China to develop a more powerful 
military machine wife a longerreacb, 
Asian and Western analysts said in 
interviews Sunday. 

"It is part of a program to make the 
Chinese forces much leaner and 
meaner, and also better equipped 
technologically," said Jusuf 
Wanandi. chairman of the supervis- 
ory board of Indonesia’s Center for 
Strategic and International Studies. 

“They are moving from labor-in- 
tensive to capital-intensive mode,'* 
said Kim Kyung Won, a former South 
Korean ambassador. 

“But China is not anywhere near a 
position where it can challenge fee 
United States for militaty supremacy, 
even within fee Asia-Pacific re- 

What is clear from the announce- 
ment Friday of the military retrench- 
ment program -by Jiang Zemin, 
China’s president, analysts said, is 
that China is determined to press 
ahead wife its program to modernize 
fee armed forces. 

It is using money and skills gen- 
erated by the rapid expansion of the 
country's economy and industrial 
base, as well as selectively buying 
modernfigbters, submarines, war- 
ship, missiles and other weapons and 
technology from Russia and know- 
how from Israel and the West. 

"Chinese military strength is 
likely to grow over fee next decades,' ' 
said Joseph Nye Jr., a former senior 
U.S. defense official who is dean of 
the John F. Kennedy School of Gov- 
ernment at Harvard University. 

"Even if feat does not make China a 
global or even regional power equiv- 
alent to the United States, it does mean 
feat China is likely to look more awe- 
some to its regional neighbors, and its 
enhanced capabilities will mean fear 
any American military tasks will re- 
quire greater forces and resources than 
is the case at present,” he said. 

simDarioihe rise ofisecaotnar powa; musteuken 
sandy as a new factor in the region-" 

Mr. Nye said that with fee economic 
distress of the former Soviet states, 
and joint Russian and Chinese con- 
cerns about U.S. dominance, China 
had been able to import impressive 

See CHINA, Page 10 

To Albright’s Surprise, 
Saudis Laud Her Stand 

By Thomas W. Lippman 

Washington Past Service 

JIDDA — King Fahd and other se- 
nior Saudi leaders have told Secretary of 
State Madeleine Albright feat she un- 
derestimated what she had accom- 
plished in her talks in Israel, U.S. and 
Saudi officials say. 

They said that Mrs. Albright had 
heard endorsements here, as she had 
earlier during her stop in Egypt, of fee 
United States' efforts to get Israeli-Pal- 
estxnian peace agreements back on 

Eayptian and Saudi leaders said they 
were ’gratified by her words to fee Is- 
raelis, whom she urged to be more ac- 
commodating of Palestinian aspira- 
tions, and to the Palestinians, whose 
plight she said she understood even as 
she demanded that they renounce ter- 

"All these statements we consider 
verv encouraging and everybody has 
hope for the peace process to move 
forward,” President Hosni Mubarak 
said at a news conference Saturday 
wife Mrs. Albright in Alexandria, 

And Crown Prince Abdullah ibn Ab- 
dulaziz said at their meeting here Sat- 
urday night: "This is what we always 
looked for and admired, a secretary of 

state who is brave and frank at fee same 

But Saudi newspapers were sharply 
critical of Mrs. Albright's performance 
in Israel. They accused her of siding 
wife Prime Minister Benjamin Netan- 
yahu’s government against fee Pales- 

The Saudi monarch and the senior 
princes expressed a different view, ac- 
cording to participants in their meetings. 

They, like Mr. Mubarak, told Mrs. 
Albright that she had made a major 
contribution when she expressed frus- 
tration at fee seemingly minimal results 
of her talks in Jerusalem. 

The Saudis endorsed her formulation 
of “mutual responsibility” in carrying 
out the Israeli-Palestinian agreements, 
"and they did nor exclude Pales tini a n 
responsibility’' for the breakdown of 
that agreement, a U.S. official said. . 

Just by winning agreement for senior- 
level Israeli and Palestinian officials to 
meet later this month, Mrs. Albright 

See MIDEAST, Page 10 


Mother Teresa Is Honored With State Funeral That Bars Poor 

Mother Teresa, who went to India as a teenage religious 
novice almost seven decades ago and died there last week a 
national hero, made her final journey through Calcutta in a 
rare state funeral feat began wife a military escort and ended 
wife a Gurkha rifle salute. 

Tens of thousands of people withstood downpours to 
watch fee procession, and dozens of foreign dignitaries 
attended the funeral. But the poor and the handicapped were 
excluded, mainly for security reasons. Page 4. 

German and U.S. Planes Lost 

BONN (Reuters) — A German military plane wife 24 
passengers aboard is presumed to have crashed Sunday 
while on a flight to South Africa and may have collided with 
a U.S. military aircraft carrying nine people, fee German 
Defense Ministry said. 

Jt said it had received confirmation feat a U.S. C-141 
cargo plane was missing in the region off Angola where the 
German aircraft was believed to have crashed. 

Books - 

Crossword Page 9. 

Opinion Page 8. 

Sports Pages 18-20. 

EnnumEl DinumVAgmcc Fiwcs-Pi**»c 

A woman trying to glimpse Mother Teresa's fu- 
neral procession as it passed through Calcutta. 

The Intermarket 

Page 7. 


Putting Dagger Aside, CIA Again Stresses the Cloak 

By Waller Pincus 

\ldshington Post Service 

Newsstand Pr ices __ 

i Andorra. 10.00 FF Lebanon U-MOGj 

i Antilles 12 j 5Q FF Morocco —-■Jo™' i 

! Cameroon ..1.600 CFA Qatar ViSS 

! Egypt ££ 5.50 Rfiumon l 

. Francs _..10.00 FF Saudi Arabia. 10 SR , 

I Gabon 1.100 CFA Senegal LlOOgWj 

! Italy 2300 Lire Spain -22S i 

j Kuwait 700 Fds U.S. MiL (EuO 51-20; 

WASHINGTON — CIA agents who infiltrated 
terrorist groups in recent years aided in uncovering 
intelligence feat helped prevent two attacks m fee last 
seven months against U.S. embassies abroad, fee new 
CIA director. George Tenet, told Congress this year. 

Mr Tenet declined to provide details of fee op- 
erations, including where they occurred. But in mak- 
S even feat minrniaJ disclosure, he was signaling feat 
Se “ voi acta remains a primary 
CIA in fee post-Cold War period, there has been a 
I 1A ™ the sov service’s often criticized his- 
operations directed at influencing 
foreign C gm'emmen°s P or removing polmcal leaders. 

aC R 0 e r ntang a aS C taaE facing U.S. policymakers. 

major covert actions are being aimed now at disrupting 
terrorist plans, stopping narcotics shipments or fouling 
up financial transactions of 'missile makers, the 
sources said. 

For instance, computer hackers' techniques have 
been used to disrupt international money transfers and 
other financial activities of Arab, businessmen who 
support terrorism suspects. 

Military research and development operations of 
longtime hostile countries, such as North Korea, Iraq 
and Iran, have been sabotaged by arranging to have 
European, Asian and other suppliers sell them faulty 
parts feat will eventually fail. 

Another tool is to “spike” exports and imports to and 
from such "rogue" nations as Libya and Iraq with 
extraneous matter — water added to oil, for instance — 
as a way to provoke dissatisfaction among consumers. 

"In fee past five to seven years, the sophistication of 

fee new tools of covert action have helped bring about 
a sea change in operations from the old days,’ ’ a senior 
intelligence official said. 

"These operations are easier to do and provide 
incremental successes,” he added. “A shipment is 
stopped, another is sabotaged. We take down a terrorist 
cell Things like this are happening now every week." 

Representative Porter Goss, the first chairman of the 
House Permanent Select Committee on Intelligence 
who has had actual experience as a CIA operations 
officer, said feat such operations, particularly in fee 
area of counterterrorism, represented a new type of 
clandestine activity. 

"There are a large number of hidden activities 
going on to meet transnational threats,” he said. "But 
I’m reluctant to call them covert action.” 

See CIA, Page 10 

Leaders Balk 
As Discontent 
In Vietnam 

By Keith B. Richburg 

Washington Post Service 

HANOI — There are signs of dis-. 
content in the countryside, with hun- 
dreds of villagers in one poverty- 
stricken coastal province rising up and 
attacking local government leaders. 

There is discontent in fee foreign 
business community, wife some compa- 
nies pulling out entirely, others freezing 
new investments and nearly all com- 
plaining about continuing corruption, a 
hidebound bureaucracy and lack of- 
clear commitment to economic reform.; 

There even seems to be discontent- 
among Vietnam's dosed and secretive 
Communist Party leaders — a recog- 
nition, through published speeches and 
articles in the officially controlled media,; 
that state industries are failing, inefficient- ; 
factories are overproducing overpriced; 
goods and foreign debt is piling up. 

Yet with such widespread acknowl-; 
edgment that Vietnam has entered a! 
dangerous and debilitating period of 
economic and political malaise, the; 
country's septuagenarian and octogen- 
arian leadership seems paralyzed. Ac-; 
cording ro foreign diplomats, Viet- 
namese officials and analysts, ther 
leadership knows it has to change and' 
adapt to free Vietnam from its gridlock,- 
but there is confusion and indecision on; - 
how to do iL 

‘ ‘They are not grinding in their heels,. 
They are trying to determine what they- 
will do, but they have not reached a; 
consensus,” said Douglas Peterson, the. 
U.S. ambassador here" "They're look-; 
ing for a system. They're looking for a 
complete change in fee way this gov- , 
emment works. They would like very; 
much to avoid pluralism, because with 
that they see great instability.” 

See VIETNAM, Page 10 




” pace mo 

‘■ The Ear Mound / Symbol of Korean Suffering 

In Japan, a Macabre Relic 
Offers Lessons of History 

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By Nicholas D. Kristof 

,\ew York Times Service 

K YOTO Japan — When they invaded 
Korea 400 years ago, JjP^se 
samurai warriors brought back price- 
less porcelain, ingenious metal type 
for printing and noses and ears hacked off the 
corpses of tens of thousands of Koreans. 

In one of the world's more macabre war 
memorials, a 30-foot t nine -meter) high hillock 

some accounts killed more than a million 
Koreans — close to one-third of the country s 
population at that time. 

The samurai in those days often cut off the 
heads of people they had killed as proof that their 
deeds matched thieir stories, but it was im- 
possible to bring back so many heads by boat to 
Japan. So the samurai preserved the noses and 
sometimes the ears of those they killed, soldiers 
and civilians alike. 

Most of the noses were cut off corpses, but 

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nere m me antic y r *nn.h cnrviveri for manv vears without noses or ears. 

HOC Ut lilt . 1 

the noses and ears were buned. The 400th an- 
niversary of this Mimizuka, or Ear Mound, will 
be commemorated in September, underscoring 
the tensions and hostilities that soil set the coun- 
tries of East Asia against each other. 

Few Japanese outside Kyoto know of the Ear 
Mound, but almost all Koreans do. In Japan, 
even among those who have beard of it, the Ear 
Mound is largely seen as a bizarre relic of little 
relevance today. To many Koreans, it is a symbol 
of a Japanese bmtishness that still lurks beneath 
the surface waiting to explode. 

*■ Frankly speaking, I think there is a nsk ot 
Japan some day again attacking its neighbors, 
said Ryu Gu Che, an ethnic Korean in Kyoto. He 
suggested that the besr way of reducing the risk 
would be for Japan to acknowledge and repent 
the savagery symbolized by the Ear Mound. 

“So although 400 years have passed," he 
said. “I think both peoples should study this 
episode and learn some lessons.” 

Mr. Ryu. who is organizing the anniversary 
ceremony, said that the lesson that Japan should 
learn is to show greater remorse. The lesson for 
Korea, he said, is to avoid corruption and weak- 
ness that could tempt foreign invaders. 

Although the major countries of East Asia, 
ranging from Vietnam through China to Korea 
and Japan, share a common cultural heritage to a 
considerable extent, deep antagonisms linger. A 
major reason for these antagonisms is .not only 
competing interests today but also divergent 
memories of the past. 

In Asia, history hangs over the present and 
constantly threatens to destabilize the future. 
The most sensitive memories are of World War 
D. but the Ear Mound underscores how some 
incidents continue to fester long after the people 
who were tortured or killed have turned to 

The Ear Mound dates from Japan s plans to 
conquer China and divide it among Japanese 
lords. Korea was in the way, so Jatxm assembled 
about 200,000 troops in 1592 and invaded, set- 
ting off a war that lasted six years and that by 

survived for manv years without noses or ears. 

The Japanese brought back barrels that may 
have contained the noses or ears of 100,000 
Koreans, scholars say, but these numbers are 
unreliable. Korean estimates are sometimes 
tainted by the partiality of the researchers, and 
the subject has not attracted extensive Japanese 
scholarship, partial or impartial. 

Japan's nilers displayed the noses and ears to 
Japanese subjects, apparently as a warning not to 
challenge the authorities, and then buned them 
and dedicated the Ear Mound on Sept- ~8. 1 , 597. 
Organizers of the ceremony on the 400 th an- 
niversary said that it would include Japanese and 
Koreans alike — Buddhist priests as well as 
Christian pastors — and would aim to appease the 
spirits of those who were killed and mutdared. 

“Our purpose is not rooted in hatred, Mr. 
Ryu said. "Rather, the point is to learn the 

lessons of history." . 

About 700,000 Koreans hve in Japan, mostly 
descendants of forced laborers brought here early 
in this century, and it often galls them that Japan 
does not show more remorse for the occupation 
of Korea from 1905 to 1945 or for the use of 
Korean women as sex slaves during the war. 

I N Korea itself, anger at Japan still rumbles 
beneath the surface and a visit to a historic 
site is usually accompanied by a guide's 
angry comments about looting that occurred 
as far back as the 16th century. 

On the other hand, some Japanese argue that 
Koreans and Chinese have vastly exaggerated 
die scale of the suffering and that atrocities are 
simply an unfortunate part ot any war. 

“One cannot say that cutting off ears or noses 
was so atrocious by the standard of the time,’ 
read a plaque that stood in front of the Ear Mound 
in the 1960s. That was taken down, but it still 
angers Koreans dial Toyotomi Hideyoshi. the 
Japanese leader who organized the invasion, is 
treated in Japan as a national hero because of his 
actions within Japan. 

Over the last decade, Japanese- school text- 

I This Week’s Holidays 

\i<lnU< l 1 . Kri,i«F'The Vwi Ttaw 

Ryu Gu Che, who is organising the 400th anniversary ceremony, lighting 
incense at the Ear Mound in Kyoto to honor the spirits of the Korean dead. 

books have made enormous strides in honestly 
recounting the brutality of the period. Fifteen 
years ago, not a single textbook referred to the 
Far Mound, but it is common in this year’s 
textbooks, and so eventually this bit of history 
may become much better known in Japan. 

"Now about half of all high-school history 
textbooks mention the Ear Mound," said Shigeo 
Shiraoyama, an official of Jikkyo, a publishing 
company tbar in the mid-1980s became the first 
textbook company in Japan to include a ref- 
erence to the mound. 

Mr. Shimoyama said that at that time, the 
Education Ministry objected lo the reference as 
"too vivid" and forced the publisher to tone it 

Koreans react to the Ear Mound in different 
ways. „ „ . 

When Park Chung Hee was dictator of South 
Korea in the 1970s. some of his officials urged 
that the Ear Mound be leveled because it was 
shameful for Koreans. Other Koreans have sug- 
gested that the mound be relocated to Korea to 
appease the spirits of the dead. But most say that 
the mound should stay in Japan as a reminder of 
past savagery, and in any case Japan treats the 
mound as a national landmark and would be 
unwilling to return it. 

The mound is not mentioned in most guide- 
books. and it attracts few Japanese or foreign 

tourists. But children in the Hiroshima public 
schools, who are particularly sensitive to war 
because of the atomic bombing there, are reg- 
ularly bused to Kyoto to see the mound. 

A LTHOUGH the Ear Mound in Kyoto 
is the best known, there are similar 
ones — mostly much smaller — 
around the country, particularly in the 
south. Those also date from the Korean invasion 
and were apparently established by feudal lords 
who also sent troops to Korea. 

Just a few years ago. scholars learned of the 
‘’Thousand Nose Mound" — which some local 
people had known of all along — near Bizen in 
western Japan. It apparently is also made 19 of me 
noses and ears of Koreans from the invasion 400 
years ago. and it was recently rebuilt and reded- 
icated to the spirits of the dead Koreans with 
contributions from 600 local Japanese residents. 

The money the Japanese government allocates 
to maintain the Ear Mound in Kyoto is insufficient 
and so several Japanese and Korean volunteers 
cut the grass and clean up the mound as welL 
* ‘As a Japanese. I feel badly for whar we did to 
the Korean people, and so I try to do something 
to make up for it.’’ said Shiro S himiz u, 83, a 
volunteer who lives next to the Ear Mound. 

“The lesson for today is that we should re- 
spect human life."* Mr. Shimizu added. 

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of national and religious hol- 

MONDAY: Bolivia. Cc*a Rica. 
El Salvador. Gwienulx Honduras. Ja- 
pan. Nicaragua. Slovakia. Sou* Korea. 

TUESDAY: Mexico. Sou* 
Korea. Sn Lanka. Taiwan. 


Hong Kong. Macau. Sou* Korea. 

FRIDAY: Chile. 

Sources J P. Morgan. Reuters. 



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San Francisco Unions 
To End Transit Strike 

OAKLAND. California (NAT) — 
Transit officials and union leaders 
reached a tentative agreement to end a 
one-week-old commuter train strike that 
has tied up traffic in the San Francisco 
Bay Area. 

The agreement must still be voted on 
by the 1.700 striking union members. 
But negotiators said they would direct 
their union members to return to work as 
soon as the trains could be inspected and 
the system restarted. 

Trie compromise agreement would 
give workers a 4 percent raise each year 
from 1998 to 2000. The package also 
ends a system of two-tier employment 
| that limited the earnings of new workers 
and required them ro work for up to slx 
years to reach journeyman status. 

Singapore Airlines delayed five 
flights to Kuala Lumpur because of 

worsening haze in Malaysia. Malaysia 
Airlines also rescheduled eight domes- 
tic flights and four international flights 
because of poor visibility, (AFP) 

As a typhoon headed for Kyushu, 
Japan’s main southern island, passenger 
feny services and more than two dozen 
flights were canceled. { Reuters ) 

Nineteen people were injured when 
an Alitalia jet flying from Rome hit 
turbulence before landing in Caracas. 


The Kenya Tourism Board is fore- 
casting a major fall in earnings in 1997 
and further gloom next year because.of 
violence near coastal resorts. (Reuters) 

Fine Air Services, a cargo carrier 
that suspended its flights following a 
crash in Miami last month that killed 
five people, said it plans to fly again 
within three weeks under an agreement 
with federal regulators. (AP) 


China Reform 
Is Long-Term j 
And Gradual, 
Officials Say 

CcatpUedbyOttr Sufi FretnDufiMChea 

BEIJING — While toe fanfare about - :■ 
aggressive state-sector reform hasovet- ■ _ 
snadowed the start of China’s 15th party 
congress, officials stressed Sunday that 
ihe radical policies will be gradual and 

10I ^eofficial China Daily's lead story ■ 
Sunday quoted a senior State Statistics 
Bureau official, Li Qiming, as saying ft. 
would take 10- years for the current ~ , 
reforms to pay on. 

The economy will be restructured tp a 
"reasonable point’ ’ where "a fair mar- 
ket mechanism will ensure proper de- .7 
velopment” in a decade, said Mr. Li, 
director of the bureau’s industry and . 
transportation department. 

Wang Zhongyu, minister-level head 
of ihe State Economic and Trade Com- 
mission, said ai a media briefing that 
stale-owned enterprises would in the 
long Tim benefit from the reforms but in 
the short run would “need a certain 
period of time to digest these changes, 
adapt themselves and adjust.” • 

President Jiang Zemin opened the . 
five-yearly congress Friday with a call 
to scale back state ownership to whip 
China's huge, inefficient state sector 
into shape. The policy he endorsed — 
under which the governm ent -wi ll share 
enterprises’ equity with institutions and . 
individuals — will effectively privatize 
chunks of the sector, although, the party . 
avoids the term “privatization.” ^ . 

On Saturday, Prime Minister Li Peng 
hailed the decision to diversify own- 
ership, but warned that it must be im- 
plemented slowly and cautiously. 

“Everything should be done in ac- 
cordance with reality. Hasty and ar- 
bitrary quotas should be avoided" he 
was quoted as saying by die Xinhua - 
news agency. "Work in this regard 
should be done according to the law of 
the market economy and be gradually 

The 217-member party presidium, 
the top decision-making body at the 
congress, endorsed Mr. Jiang’s j>Iaa 
Sunday. The congress, held every five 
years, is expected to approve the plat- . 
farm and a new Central Committee 

when it ends Thursday. Anew Politburo 
will be announced Friday . 

The planned ownership reorganiza- 
. tion aims to create incentives for im- 
proved management and performance, 
but anal ysts say it cannot produce a 
turnaround overnight especially fra 
firms buried under mountains of debt. 
l Details of the method for state dis- 
investment are still unavailable, but re- ; 

- ports in the official media show some 
1 disagreement among officials about 
bow to break down the state sector. 

, • ‘The policy has paid off to supports 

r selected number of large state enter- 
i prises while leaving most smaller ones 
I to sink or swim,” Li Qiining said. ' 

But Xing Bensi, vice president of toe 
i Central Committee’s party school, at- 
t tacked reports that toe state would only 
keep a small number of large enterprises 
I as "groundless." Such a method would 
“only lead to chaos," he told Xinhua. 

Less than half of 1 percent of state- 
owned enterprises are successful giant 
firms, but 70 percent of China’ s 370,000 
state firms are running at a loss and 35 
percent have debts greater than assets. 

Because the sector employs more . 
than 100 million of China's urban res- , 
idents, any rapid disappearance of state 
backing could displace millions of 
workers, creating toe potential for mass 
1 unrest. (AFP. AP) 


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Tobacco Settlement Is All But Ashes 








By John M. Broder 
and Barry Meier 

rinhi Srrrttr 

WASHINGTON — Just three months 
ago. state attorneys general and tobacco 
industry executives announced a dramat- 
ic S36S.5 billion legislative proposal that 
was to murk a turning point in the na- 
tion's decades-old conflict over smoking 
and health. But today, the proposed to- 
bacco settlement is all but dead. And 
what, if anything, will rise in its place 
remains the subject of intense debate. 

Though White House officials helped 
shape the proposed tobacco accord, the 
administration has steadily backed 
away from u. Advisers to President Bill 
Clinton urged him last week to offer 
only a general outline of what a national 
tobacco policy should contain, rather 
than a detailed legislative proposal. 

Mr. Clinton is to deliver nis verdict on 
the plan as early as this week. Initial 
expectations that Congress would enact 
a tobacco bill this year have been de- 
flated. And with each passing week, the 
plan's momentum has slipped. 

In pan. the proposal’s uncertain fate 
reflects a clash of historic adversaries, 
including fierce opposition from anti- 
smoking forces and others who have 
characterized the deal as a bailout for a 
renegade industry. But interviews with 
Clinton administration officials, law- 
makers. public hejlth advocates and to- 
bacco industry representatives also sug- 
gest that backers of the settlement 
package made a series of crucial mis- 
steps and miscalculations. 

For example, the strategy adopted by 
tobacco companies and state attorney’s 
general — to present a prepackaged 
proposal ro Congress that involved pub- 
lic health, regulatory and liability issues 
— backfired as lawmakers balked at 
being told how to do their jobs. 

The industry's immense financial of- 
fer and its tnimpeted concessions on 
marketing did not mollify opponents, but 
rather loosed a torrent of popular anger. 
If the companies were willing to pay that 


mospherc. seme came to be heve th eir 
proposal would be quickly embraced by 
Congress and die public health com- 
munity. some of those mvolve d said ., 

They soon found out differently. 
Hours after the plan's announcement, 
both Dr. David Kessler, the formerconv- 
missioner of food and drags, and Dr. C. 
Everett Koop. the former surgeon gen- 
eral, condemned it as “deeply flawed. 

Editorial writers and lawmakers as- 
sailed the plan, describing it either as a 
cave -in to the cigarette makers or a boon- 
doggle for trial lawyers. "It was like 
opening Pandora’s box*’ said an ex- 
ecutive ofR.J. Reynolds Tobacco Co. 

Senator Don Nickles of Oklahoma, 
the No. 2 official in the Republican 
Senate leadership, said: “Theybring us 
a plan that involves a collective violation 
of antitrust laws and sends most of the 
money to the states and exempts the 
companies from liability. Nobody s 
signed Off on that It’s got a long way to 
go before it becomes law." 

much, critics contended, they must be 
able to afford more. .And in what proved 
to be a political blunder, tobacco lob- 
byists managed to slip a S50 billion tax 
credit to lower the cost of the settlement 
into balanced budget legislation passed 
in July. Embarrassed senators voted. 95 
to 3. on Sept. 10 to repeal the provision. 

‘•There was institutional reluctance — 
resentment, even — that a handful of 
attorneys general and plaintiffs' lawyers 
would come to us with such a detailed 
agreement, even divvying up the spoils," 
said Senator John McCain, Republican 
of Arizona, the chairman of the Com- 
merce Committee. “Who do these 
people think they are'.’ That’s a legislative 
and executive branch prerogative." 

Senior administration officials briefed 
the president Friday on their review of the 
proposal, two months after the study was 
to have been completed. The consensus, 
after sharp internal debate, was that Mr. 

GLinton should sketch his tobacco policy 
in broad strokes without endorsing the 
plan negotiated by the state officials and 
tobacco lawyers, or any version of it. 

Under the proposed accord reached __ — ~m % , 

Aide Pushed Clinton 

health advocates and class-action law- Iwwv 
yers. the industry agreed to pay S368.5 


km 1 •"■Li 

Mr, Clinton, left, and Vice President Gore at a congressional dinner. 


Internet Essays Undercut 
Colleges' Applications Steps 

College admissions officers are un- 
happy about a new Web site on the 
Internet that offers students help in 
writing the crucial personal essays re- 
quired for admission. The Web sile. 
twEssavs. goes beyond offering 
guidelines or ideas for better writing; it 
sells copies of essays that have helped 
earlier students gain admission to 
some of the country's best universit- 
ies, from Stanford to Harvard. 

Purchasers of a ULraper package 
— it includes topics like the Ex- 
perience That Changed Me Essay, 
the "1 Love Science Essay, and the 
"Surviving a Setback Essay" -- are 
required to promise not to copy- from 
these solid gold essays, which the Web 
site's creator purchased. 

They begin with language like, i 
crew up in small towns in Idaho and 
New Mexico." or, “1 watched as the 
mahi-mahi leapt from the ocean s sui- 

I iLC€ 

College officials say college applic- 
ants might modify these only slighti> 
for their own use. 

Plagiarism is not uncommon in such 
endeavors. "The University of 

billion, principally to settle smoking- 
related lawsuits by states and smokers. It 
also agreed to restrict marketing, do 
awav with advertising figures like Joe 
Caniel and the Marlboro Man, finance 
anti-smoking campaigns, pay fines if 
youth smoking did not fall to specified 
levels and submit to the jurisdiction of 
the Food and Drug Administration. 

In return, the agreement proposed 
giving cigarette makers protection 
against class-action lawsuits and im- 
munity from punitive damage awards 
for past misconduct 

In negotiating the settlement, a small 
group, w ho included plaintiffs' lawyers 
representing smokers and their surviv- 
ors. had excluded lawmakers and oth- 
ers. believing too many voices would 
‘doom their effort. In this hothouse at- 

Pennsylvania finds fraud in 1 5 percent 
of applicants' essays," according to 
ThePhiladelphia Inquirer. 

Short Takes 

The opening day of the Los 
Cot ‘ " ' ' 

By Don Van Natta Jr. 

.Vrw Vert Times Service 

Angeles County Fair last week was 
like those of earlier years. Clowns 
roamed die midway and the^ Randv 
Newman sone “I Love L.A." blared 
from speakers. This year, however, a 
new booth is drawing crowds — and 
raising some eyebrows. The state s 
Justice Department has installed nine 
computers al which fairgoers can scan 
lists of 64,000 convicted child mo- 
lesters and rapists. The CD-Rom dis- 
plays include photographs, offenses, 
names and addresses. As in several 
other states, the information was 
already publicly available, at police 
stations and bv phone. But California 
appears to be the first state to bring the 
data into the land of cotton candy. 

Liz Schroeder of the American 
Civil Liberties Union called the dis- 
play “voyeuristic," saying it was jar- 
ring to fairgoers with "a hot dog in one 
band and a candy cane in the other. 
The state, she said, was making a 
public safety issue into "some son of 

Debit cards, which look like credit 
cards but work like checks, have 
been catching on rapidly-. About lit 
million Americans owned such cards 
in 199 L But financial institutions have 

WASHINGTON — Harold Ickes 
found it easy to persuade President Bill 
Clinton to agree to make a few fund- 
raising calls from the White House. The 
hard part was actually getting the pres- 
ident to pick up the telephone. 

Mr. Ickes. formerly the White 
House's deputy chief of staff, recalled 
that he had to leave the call sheets on Mr. 
Clinton’s desk, where they often sat for 
weeks, untouched. 

“Then I would bug him ina very tow- 
keyed wav as to whether he made or was 
intending to make the phone calls," Mr. 
ickes said in a deposition taken in June 
by Republican lawyers for the Senate 
committee investigating campaign-fi- 

been mass-mailing the cards to house- 
holds, and companies like Visa and 
MasterCard are reassuring wary con- 
sumers dial if they lose a card, they 
will be held responsible for no more 
than S50. 

Kenneth Jursinski, a Cincinnati 
businessman, was gnashing his teeth, 
waiting for news he hoped would close 
a $50 million deal, when his secretory 
said he had an urgent call. He snatched 
up the phone. “It was some guy hying 
to sell me stocks and bonds, * Mr. 
Jursinski said. “I hung up and said, 

‘Enough!" . . . ... 

Four years later, Mr. Jursinski is 
selling a device designed to thwart 
telemarketers — the Phone Butter. 
When an unwarned call comes in. the 
user presses a button on the phone pad. 
The caller then hears a firmvoice with 
a British accent saying: “Pardon me. 
this is the Phone Butler, and I have 
been directed to inform you that mis 
household must respectfully decline 
your inquiry. Kindly place this number 
bn vour do-not-call list Good day. 

And with mat, the caller is dis- 
connected. “I wanted something po- 
lite and fast." Mr. Jursinski said. 

The Butler could be a boon to 
people who have a hard time brushing 
off telesolicitors. Mr. Jursinski said. 
Most victims of phone fraud, accord- 
ing to the FBI. are elderly and often 
consider it rude to hang up. 

• Miss Illinois, an aspiring 

actress named Katherine 
Shindle. 20. who works as a 
janitor at a dance studio m 
exchange for lessons, was 
crowned Miss America 1998 
in Atlantic City, New Jersey. 
The theater and sociology 
major, in her last year at 
Northwestern University , 
said she would be an advocate 
for .AIDS issues. lArJ 

• With jury selection in the 
second Oklahoma City bomb- 
ing trial two weeks away, the 
defendant. Terry Nicholas 
asked to trade courtroom 
tables with the prosecutor so 

he can be closer to the jurors- 

Mr. Nichols. 42, goes ort trial 
SepL 29 on 1 1 charges ot 

murder and conspiracy in the 

1995 bombing tff , fed ?S 
building that kdted 168 

people. fA * #l 

• America Online will re- 
move Web pages from its 

system that feature essays and 
artwork by serial killers The 
Internet provider said the web 
pages featuring work by Keith 
Hunter Jes person and Danny 
Rolling would be removed. 
Mr. Jesperson has been con- 
victed of three murders in me 
Pacific Northwest and faces a 
fourth murder charge in 
Wyoming. Mr. Rolling is on 
death row in Florida for the 
1990 murders of five college 
students in Gainesville. [AP 1 

■ The space shuttle Atlantis 
is scheduled to blast off op a 
mission to Mir on SepL -5 to 
pick up the astronaut Michael 
Foale and drop off his re- 
placement. [Reuters i 



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nance abuses. “He always intended to 
make the calls." 

Mr. Ickes said that occasionally be 
would “be fortunate enough to find out 
mat he had. in fact, made a phone 

call." . . e 

In the two-day deposition, a copy ot 
which was obtained by The New i ork 
Times. Mr. Ickes described himself as 
the Clinton campaign's “bottom-line 
miv" and chief cajoler who pressed a 

O ■ . ■ a J A 

Mr. Ickes spoke frankly about the 
Democrats' money needs and me 
scramble to meet them. That challenge 
was made even more difficult byme 
president's popularity, which Mr. Ickes 
said was responsible for a severe short- 
age of direct-mail contributions last 
vear because many Democrats assumed 

Mr. Clinton did not need their help. 

“At one point." Mr. Ickes said, 
“there was a real fall-off in direct mad 
because the president was doing so well 
in the polls. We lost 5 million bucks, 
literally, in a month." 

The' crisis called for some creative 
food-raising measures, and that was 
clearly part of Mr. Ickes's mandate. His 
aggressive push for money was just pan 
of a frenetic Democratic campaign that 
saw Vice President Al Gore dialing for 
donations in his office and arms dealers 
and convicted felons attending White 
House coffees. . . 

Throuehoul hours of questioning, 
Mr. Ickes described himself as being as 

perplexed as everyone else about the 
motives and activities of John Huang, 
Yah Lin iCharlie) Trie and Johnny 
Chung, three Fund-raisers whose activ- 
ities have come under intense scrutiny. 

“I would not know him if he came in 
here right now and sat on my lap." Mr. 
Ickes said of Mr. Chung. 

Mr. Ickes repeatedly denied sugges- 
tions that the excesses were somehow/ 
his fault, even indirectly. If he had 
known that fund-raisers had sold ad- 
mission to White House coffees, seats 
on Air Force One and overnight stays in 
the Lincoln Bedroom. Mr. Ickes said, he 
would have taken immediate action. 

“Had I known of it," he said, “j 
would have not only disapproved of it, l 
would have told them to stop. ’ 

But Mr. Ickes's answers also make it 
clear that he was a driving force behind 
the aggressive push for contributions for 
the Clinton -Gore campaign and the 
phone solicitations from me White 
House, the two issues that have com- 
bined to ensnare the vice president in the 
most serious crisis of his career. 

Attorney General Janet Reno is now 
investigating whether 46 phone calls 
Mr. Gore made to big donors from his 
White House office constituted viola- 
tions of the federal election law. A por- 
tion of the money raised from those calls 
was diverted from the Democratic Na- 
tional Committee to the Clinton-Gore 

Ca vfSSm the next several weeks. Ms. 
Reno is to decide whether an independ- 
ent counsel should be appointed. 

Clinton Pushing 
Campaign Reform 

WASHINGTON — President 
Bill Clinton has challenged the . 
Senate to bring a long-delayed 
campaign-finance reform bill to a ; 
format vote this month and told ■ 
senators threatening to block con- ; 
sideration of the legislation that “a . 
vote to filibuster campaign reform 
is a vote to keep special-interest 
money and kill refotm." • 

The bill would ban the use or 
“soft money" by national political 

parties. Soft money is the term used 
for donations dial aid a party s gen- 
eral campaign but cannot be used to 
help a specific candidate. 

Many Republicans argue that 
Mr. Clinton's support of me mea- 
sure is designed to divert attention 
from the revelations concerning his 
own involvement in raising soft- 
money donations for his re-election 
effort last year. (ATT) 

A Lucrative lear 

For Kenneth Starr 

Starr last year was paid $$7,385 as 
the independent counsel appointed 
to investigate President Clinton, ■ 
Hillary Rodham Clinton and the 
Whitewater affair, and he rook in 
S 1.12 million from Khkland & El- 
tis. the law firm where he continued 
his private practice. 

The compensation from Mr. 
Stair's private law practice for 
1996 rose $163,000 from the 
S956.621 he reported earning at 
Kirkland & Ellista 1995, according 
to financial disclosure statements’ 

A spokesman for the law firm. 

» - 


sation is calculated as a 

said: “As with any 
\ Ken's compeu- 

d as a percentage 

of the firm’s profits." fWH 

Quote / Unquote 

Steve Forbes, who ran for the 
Republican presidential nomina- 
tion last year, speaking before the 
Christian Coalition s annual con- 
vention in Atlanta, where he drew 
an enthusiastic response to speak- 
ing of a national creed: “We must 
not rest until it includes the unborn 
and the elderly. Properly oigued, l 
believe this issue can inspire out 
nation, not divide our nation. Re- 
member, life begins at conception 
and ends at natural death. i/vrTf* 

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The Final Journey 
For Mother Teresa 

India Honors Her as National Icon 
With Pomp and Sorro w at Funeral 

By Barbara Crossette 

ficv York Timet Sen-ice 

• CALCUTTA — Mother Teresa, 
who came to India as a teenage 
religious novice almost seven de- 
cades a?o and died here last week a 
national hero and international icon, 
made her final journey through the 
monsoon-soaked streets of Cal- 

laigely for security reasons. Cal- 
cutta is an unpredictable city that is 
inexperienced in this kind of spec- 
tacle, and there were many foreign 
dignitaries to protect 
When on a few occasions 
bystanders broke through barricades 
and surged toward the gtm carriage 
and its military escort, sometimes 
throwing flowers, they were pushed 

ctitta. . 

In six hours of ceremonies Sat- 
urday that began with a military 
escort from a quiet convent church 
and ended with a Gurkha rifle salute 
oVer her tomb, the nun was honored 
with both pomp and sorrow by her 
City, her adopted country and the 

• As Mother Teresa was borne 
through Calcuoa on an army gun 
carriage — the one that carried Mo- 
handas Gandhi to his funeral pyre in 
1-948 — she Jay in an open coffin, 

-partly tucked under an Indian flag. 

. There was a rosary" in her worn 
and wrinkled hands. Her sari, white 
■with the distinctive blue border of 
.her Missionaries of Charity, was 
pinned at the shoulder with a silver 

• The crowds char assembled to see 
her cortege pass were far smaller 
than expected — in the tens of thou- 
sands rather than the expected mil- 
lion — and far more decorous than 
usual in India. Some waved good- 
bye: some wept Some held their 
children aloft for a look at the for- 
midable woman who many predict 
will one day be declared a saint 

• Periodic downpours probably 
kept many people off the streets. But 
there was also a certain air of de- 
tachment about Saturday's events. 

The poor, the handicapped and 
the troubled — the people Mother 
■Teresa spent her lire helping — 
;were barred from taking part, at the 
insistence of the Indian militaiy. 

loved people did attend the funeral 
itself, a three-hour ceremony that 
was partly a Roman Catholic Mass 
and partly a memorial service ad- 
dressed by leaders of more than half 
a dozen other faiths and attended by 
representatives of dozens of gov- 
ernments worldwide. 

A woman rescued from prison, an 
orphan, a young handicapped man 
and a leper took part in the Mass led 
by Cardinal Angelo Sodano, the 
Vatican secretary of state. 

“She learned to see the face of 
God in every suffering human be- 
ing,' ' Cardinal Sodano said in a eu- 
logy delivered on behalf of Tope 
John Paul H. 

“The entire church thanks you 
for your luminous example and 

E remises to make it our heritage.” 
e added, in his farewell to a mm 
whose wild notion about founding 
an order devoted to the poorest of 
the poor was not at first welcomed in 
Rome nearly half a century ago. 

“I thank* you for all yob have 
done for the poor of the world,” be 

■ fy+": - -• ••• -: . 


" 'St ':-*4dS 

said. “Dear Mother Teresa, rest in 

As many cardinals and archbish- 
ops prayed over her body, which 
rested on a catafalque trimmed in 
what are known here as the "Mother 
Teresa colors" of blue and white, a 
choir of her order's sisters, repre- 
senting thousands of Missionaries 
of Charity in scores of countries, 
sang her favorite hymn, “Abide 
With Me,” 

The last line of its first verse 
seemed especially appropriate: 
“Help of the helpless, oh. abide 
with me." 

Hillary Rodham Clinton took her 
place among the foreign delegations 
and laid a wreath at the foot of 
Mother Teresa's coffin on behalf of 
the United States. 

The presidents of Albania, her 
native country, Ghana and India 
were present, along with prime min- 
isters, ambassadors and special rep- 
resentatives — often the spouses — 
of political leaders. . 

Three queens were in attendance: 
Queen Fabiola of Belgium, Queen 
Noor of Jordan and Queen Sofia of 
Spain. The Duchess of Kent rep- 
resented Queen Elizabeth IL 
Indian politic ians also lined up to 
lay wreaths, prolonging by an hour 
what Was to have been a two-hour 


It was held- in a large indoor sta- 
dium built for table-tennis cham- 
pionships in die 1970s. Indians had 
turned the vast hall into a temporary 

A lot of attention and commen- 

At Least 100 Die and 400 Are Injured in Indian Train Plunge 

Age nee France-Prcsse 

NEW DELHI — At least 100 
people were killed and 400 injured 
when five cars of a passenger train 

plunged off a bridge .into a river 
Sunday in the central state of Mad- 

hya Pradesh, the United News of 
India reported. 

The accident occurred about 70 
kilometers (40 miles) from the city 
of Raigarh. The five cars of the 
packed train, with an estimated 300 

passengers aboard, derailed and 

plunged into the Hansdev River. 
The press agency said 100 more 
le were being treated in a hos- 

people were being treated in a hos- 
pital in Raigarh. Railroad officials 
had yet to comment. 

•• G 




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Blast Kills 18 at India Refinery 4 p l 

? ? : 

uvnFR AftAD India — An explosion and fire Sun- 

India killed at least 18 
a of more than 150.000 

were injured, and residents fled five 
scores 01 yewy an j rtamaoed a naval in- 

“SX ^ -3 Wd a naval in. 
stajjatioo and offices of another petroleum unit m the port 

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were shut down as heat from fhe blaze blew up oil stora g 
SSI wimessas. said ^Officfeda from , te MM 

tanks witnesses saia. “ w „ , 

SStaH Petroleum Car?, said 31 refinery 
including tanker-truck drivers, were injured m the b^t 

including tanker-track 
and the fire. 


Thais Protest Economic Crisis 

BANGKOK — More than 1,000 woricers notched 

fcfei vShottitSc Aaneiaci fttXn 

A few faces in the varied crowd waiting in Calcutta for Mother Teresa's funeral procession to pass by. 

tary focused Saturday on Mother 
Teresa’s successor. Sister Nirmaia, 
who told reporters Friday that she 
would not assume the name of 

She was chosen superior general 
of the Missionaries of Chanty in 
March, when h was apparent that 
Mother Teresa's health was precari- 

In her remarks during the Mass, 
Sister Nirmaia did not deviate from 
her sober, reflective style. Bom into 
a Nepali Hindu Brahmin family. 
Sister Nirmaia has neither the in- 
fectious grin nor the send-in-tbe- 
tanks approach to obstacles that 
made Mother Teresa a widely ad- 
mired and respected figure. 

The last rites for Mother Teresa, 
who was 87, marked the first time 
since Gandhi’s assassination in 

economic crisis. 

The latest demonstration stepped up pressure on Prime 
Minis ter Chaovalit Yonnchaiyut, who is fearing for votes 
on a no-confidence motion and a new constitution at the 
end of the month. 

In a meeting with Mr. Chaovalit after the protest, 
leaders of the march asked that he take into consideration 
the plight of the poor when formulating policies to raise 
revenue. (AFP) 

High Energy Use Seen in Asia 

1 948 that India had organized a stale 
funeral for a person who had not 
held public office. 

The final burial ceremony was 
closed to the public and the press. 
Only the rifle salute, fired by 
Gurkhas of the Indian Army, 
signaled to the crowd that Calcutta’s 
favorite nun was gone. 

HONG KONG — Global energy demand is forecast to 
double by 2020, with the greatest demand coming from 
fast-growing economies ill Asia, a report released here 

Sunday said. , 

The report, “Energy 2020 by a private British power 
company. PowerGeh, said the traditional heavy energy 
consumers in Europe could be overtaken by Asian coun- 
tries. Six of the top 10 energy consumers could be in Asia, 
with the United States remaining the largest consumer 

overall into the next millennium. _ _ . „ 

The report suggested that by 2020 the United States 
will be the biggest consumer of power, followed by 
r-hina where it said demand could grow at twice that as in 
the United States. (AFP) 

For the Record 

An underground gas pipeline in southern Taiwan 
owned by the state oil monopoly Chinese Petroleum 
exploded and burst into flames, killing at least three 
people and injuring 22, police said. (Reuters} 

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^Modernizing’ Britain: 
Blair’s Political Gamble 

Just Where Will His Agenda Lead? 

By Dan Balz 

^'uiliiii^uni ft i.n S en-11 v 

— A British think tank 
ailed Demos issued a report last week 
excising the country as little mote than 
a heritage theme park and arguing that it 
IS . r V ma ^ c Britain “one of the 
w ond s pioneers rather than one of its 
museums. *■ 

No one seems to understand that mes- 
>age with greater clarity than Prime 
mister Tony Blair. In office less than 
rive months, he misses no oppor- 


to push the theme of modernizing 
Britain as the centerpiece of his agenda. 

■‘We came to power pledged to mod- 
ernize. New Labour, new Britain," he 
told the Trade Union Council last week. 

The party modernized, earning the trust 
of the people to modernize our country. 
And just as the party which elected me 
leader knew of my determination to mod- 
ernize the party, so the country was clear 
about what we intended, too. Modernity 
is our spirit as it is the spirit of an age." 

Mr. Blair's agenda is full of proposals 
mat push the country in a new direction. 
Scotland voted last Thursday to create its 
first Parliament in nearly 300 years. This 
Thursday there wilj be a vote in Wales on 
whether to create a separate assembly 
with limited powers. After that there will 
be a move to give London its first elected 
mayor. After that may come regional 
bodies in England with powers over local 
affairs. Mr. Blair speaks of devolving 
power in Northern Ireland if the two sides 
conclude a peace agreement Now. after 
the death of Diana, Princess of Wales, he 
has added the monarchy to the list of 
institutions that need refurbishing. 

It is a program that is both radical and 
conservative — although skeptics con- 
tend it is mostly rhetorical flourish to 
substitute for the kind of large-scale 
spending on education or health care or 
housing that Mr. Blair rejects. Still, it 
represents a gamble. He is helping set in 
motion forces that may outrun him, while 
betting that modernization is the route to 
preservation — of a United Kingdom, of 
the monarchy and most importantly of 
the Labour Party government he heads. 
.All of this will test (he young prime 
minister's political abilities to balance 
competing demands while steering a 
course aimed squarely at expanding his 
and Labour’s support among the middle 

class for a second five-year Term. 

If there is a thread that ties together the 
momentous events of the last two weeks 
here, it is the theme of rejuvenation. The 
crowds mourning Diana outside Buck- 
ingham and Kensington palaces did not 
necessarily want to dump the monarchy; 
they mostly wanted a monarchy in tune 
with the sensibilities of the lime. The 
Scots who gave a resounding vote in 
favor of a new Parliament did not ne- 
cessarily want to break away from Bri- 
tain, but they certainly wanted the power 
to make some decisions for themselves. 

Mr. Blair has done much to try to stitch 
all of this into one garment. In the last two 
weeks, he has been highly visible and 
politically adroit at capturing and de- 
fining the public mood. It was Mr. Blair, 
or one of his advisers, who coined the 
phrase “the people's princess,'' which 
seemed to give voice to the mourners 
who were then just beginning to gather 
outside the royal palaces. It was Mr. Blair 
who hailed the devolution vote in Scot- 
land as a sign that the people had shown 
"the courage and confidence to trust 
themselves." It was also Mr. Blair who 
told trade unionists, many of whom 
listened in silence, to "modernize your 
political structures" or suffer the con- 
sequences of virtual exclusion in a polit- 
ical party the unions once controlled. 

Critics question whether the theme of 
modernization really adds up to a pro- 
gram — or represents little more than 
stylish rhetoric on the part of a Labour 
Party politician who wants to govern 
more as a conservative. 

"Modernization is a term that is very 
frequently used to describe policies at 
the moment.' * said Eric Shaw, a lecturer 
at Stirling University in Scotland and the 
author of several books about the La- 
bour Party. "But when you by to define 
what it means, it's not entirely clear 
what it has to do with being innovative 
or new. In policy terms, it’s a shift 
toward political perceptions that have 
more often been found on the right.” 

David Willetts, a Conservative mem- 
ber of Parliament, said the Tories would 
argue that "the real meaning of mod- 
ernization is the economy and that we 
accomplished a lot in 18 years.” 

Mr. Blair ’s government, he predicted, 
will make it more difficult to continue 
those changes. He also criticized the 
prime minister’s overall approach. 
“There’s a son of arrogant assumption 
that Labour can work over any insti- 
tution in its paih." Mr. Willetts 'said. 

M vU|fi Juitnf Apvncc FrirKPi^c 

A photograph released Sunday showing a section of the discharge pipe from the nuclear-reprocessing 
plant at La Hague, which Greenpeace claims is spewing radioactive waste into the English Channel. 



Greenpeace Levels New Charges 
Against La Hague Nuclear Puint 

PARIS — The Greenpeace environmental group leveled 
new accusations against the nuclear reprocessing plant at 
La Hague on Sunday, saying it had deposited radioactive 
waste just 250 meters off a local beach. 

Greenpeace said its divers found two nuclear-waste 
drums, a filtration chamber and 20 meters of pipe off a 
public beach near the plant on the English Channel. 

"Measurements taken underwater show that these items 
emit dangerous radiation levels," the statement said. 

Cogerm, the state-run nuclear company that operates the 
plant, was not available for comment 

Greenpeace said the presence of waste appeared con- 
nected to recent attempts by Cogema to clean up the area at 
the end of the plant's discharge pipe following earlier 
accusations bv Greenpeace that the pipe was spewing 

accusations by Greenpeace that 
atomic waste. 

pipe was spewing 

Labor Teetering in Norway Vote 

OSLO — Norway’s governing Labor Party was heading 
for a cliff-hanger election Monday after a campaign fought 
over how fast to spend huge riches from North Sea oil. 

"I feel very confident,” Prime Minister Thorbjoern 
lagland said. ' ‘We have done what we should do and what 
we could do in this election campaign." 

He reiterated that his minority Labor government would 
resign unless it received at least 36.9 percent of the vote, the 
amount it won in the last election, in 1993. 

Even so, analysts say disarray in the opposition means that 
Labor could regain power even if it falls short of its target 
and briefly steps down. Squabbling among other parties 
means that any rival coalition may quickly founder. 

Two opinion polls Sunday diverged over whether Labor 
would reach its goal. An MM1 survey estimated that Labor 
would get 40 percent of the vote, while an Opinion AS poll 
showed it receiving 34.4 percent. 1 Reuters I 

Turk Army Helicopter Crashes 

DIYARBAKJR. Turkey — A Turkish military heli- 
copter hit electricity cables and crashed into a garden 
Sunday, killing 10 soldiers on a mission against Kurdish 
rebels, security officials said. 

They said three noncommissioned officers and seven 
privates died in the crash on the outskirts of Gevas on the 
banks of Lake Van in eastern Turkey. ( Reuters) 

U.S. Air Base Reverts to Pasture 

LONDON — Fences around Greenham Common, a 
former U.S. air base in southern England where cruise 
missiles were deployed at the height of the Cold War, were 
pulled down Sunday. 

Greenham Common drew thousands of protesters when 
the missiles were first deployed in 1983 and a series of 
women’s protest camps were set up around the perimeter. 

The air base will now revert to common land where cattle 
and other animals will be allowed to graze, though some 
areas will still be off limits to the public for safety rea- 
sons. (Reuters) 

Russian Says :: 
No ‘Suitcase’ ; 
Atom Bombs . 
Are Missing • 

By David Hoffman 

Waihingiun Posi Sen U r 

MOSCOW — A former Russian se- 
curity official said over the weekend 
that all suitcase-sized nuclear weapons 
inside Russia had been accounted for. 
But the situation is not yet fully clear in 
some of the other former republics of 
the Soviet Union, he added. 

Alexander Lebed, a former general- 
who at one time ran the Security Coun- 
cil, has suggested that some nuclear- 
weapons might be missing from the 
Russian military arsenal. 

But the former security official. 
Vladimir Denisov, once a deputy on the 
council, said Saturday in an interview 
with Interfax that all suitcase bombs in 
Russia were being kept at "appropriate 
storage facilities. ’ ’ 

Three months ago, Mr. Lebed told a 
U.S. congressional delegation visiting 
here that while serving in the Kremlin 
he had tried to account for 100 or more 
suitcase-sized nuclear weapons held by 
the military and could locate only 48. 
Russian and U.S. officials later disown? 
ted his suggestion Thai the other- 
weapons were "missing.” 

Mr. Lebed, who has a reputation for. 
exaggeration but also has close ties to 
the military, subsequently described the. 
weapons as roughly the size of a carry- 
on travel bag. He said they were the 
responsibility of special military intel- 
ligence units in border regions. 

The former general said to Interfax a 
week ago that the nuclear suitcase wt& 
"an ideal weapon for nuclear terror."*. 

"The warhead,” he said, “is activ- 
ated by one person and is easy to trans- 

In contrast with his earlier explicit 
statement about 100 such bombs, Mr-- 
Lebed said that while he was serving in 
the Kremlin he "did not have time t<% 
find out how many such nuclear war? 
heads there were." 

Mr. Denisov said Saturday that the 
issue of missing nuclear weapons came 
up in July 1996 because of the war in 
breakaway Chechnya and reports that 4 - 
nuclear weapon might have fallen irir*^ 
the hands of Chechen rebels. • -N 



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'£an Italy Steer Clear of a Crisis on Welfare / 

T Italy's center-left government is 
preparing a sweeping program of 
welfare reform, but the Refounded 
Communist Parry opposes any cuts 
(n pensions and other areas and last 
week threatened to pull out of the 
majority coalition. Foreign Minister 
LambcrtoDini. who is also leader of 
Uie Italian Renewal Party, a mod- 
erate member of the coalition, dis- 
cussed Italian politics and foreign 
policy with Alan Friedman of the 
International Herald Tribune. 

' Q. It looks as though the Re- 
founded Communists may be able to 
block welfare reform, and they are 
threatening a political crisis on the 
issue. What is your assessment of 
the situation? 

• A. So far the Refounded Com- 
munists have not been an obstacle to 
the implementation of our budgets. 
But of course the government now 
needs to make adjustments in the 
welfare system in order to com- 
plement the deficit- reduction plan 
and make it sustainable and lasting. 
The Communists are hung up on 
preserving the status quo. They are 
the real conservatives, and they are 
obviously mistaken, so it is our job 
to convince them they are wrong. 

Q: Bur they say they might pull 
out of the government, depriving 
you pf a majority in Parliament. Do 
you punk this is a real risk or not? 

Q & A / Foreign Minister Lamberto Dini 

A. My expectation is that when 
the chips are down, the Refounded 
Communists will not withdraw from 
the government on an issue so vital 
for the future of our country. 

Q. So you think they are simply 
bluffing, or posturing? 

A- In the end I think they will 
come along. But there is no doubt 
that we are at a difficult juncture. 


Q. The Refounded Communists 
are also pushing for legislation to 
require a 35-hour workweek, like 
the French government What is 
your view of this proposal? 

A It would be a serious mistake 
to go along with such a proposal and 
mandate a 35-hour week. This is a 
matter that should be left to col- 
lective bargaining. 

Q. What would a 35-hour week 
mean for Italy? 

A It would lead to a loss of com- 
petitiveness, with inevitable con- 
sequences for production and for 

Q. Another problem for the gov- 
ernment is the secession threat from 
Umberto Bossi, leader of the North- 
ern League. What is your reaction to 
the announcement that the league 

plans to hold its own election Oct 
26 to set up a Northern Italian Par- 

A I think the Italian government 
has been very tolerant of Mr. Bossi' s 
extravagant ideas. But now he ap- 
pears to be on the verge of breaking 
the law by holding this election. If 
he does, then he must be stopped 

Q. Turning to foreign policy, on 
Monday you will meet your Euro- 
pean Union counterparts in Brus- 
sels. On the agenda is whether to 
send EU ambassadors back to Iran, 
five months after they were with- 
drawn because of the German court 
niling that linked Iranian leaders to 
the 1992 assassination in Berlin of 
four Iranian dissidents. What will 
you recommend on Monday? 

A Now that a new moderate gov- 
ernment has invited them back, it 
seems to us that we cannot continue 
to not have our ambassadors present 
in Tehran. They should go back as 
soon as possible because there is a 
new leadership, and a new departure 
in international relations is possible. 
But we cannot accept Tehran's re- 
quest that the German envoy should 
return only after other EU ambas- 
sadors, because this is discrimin- 


Q. You met Secretaiy of State 
Madeleine Albright in Washington 
just before she left on her Mideast 
crip last week Israel has turned 
down her demand to cease the build- 
ing of Jewish settlements on oc- 
cupied land. What should Israel and 
the Palestinians do, in your view? 

A It seems to me that the sec- 
retary of state is developing a very 
balanced approach. Of course, first 
and foremost it is essential that Pal- 
estinian authorities take a firm com- 
mitment to prevent terrorism. But at 
the same time, the Israeli govern- 
ment should accept a halt on any 
new settlements in East Jerusalem 
and the occupied territories. It is 
essential that Israel agrees the prin- 
ciple of land for peace. 


Q. Italy is closer to Algeria than 
most other EU members except 
France. What should the European 
Union do about the violence in Al- 

A. The current situation is un- 
acceptable, and we have a moral 
responsibility to undertake serious 
initiatives, either directly or even 
through nongovernmental organiza- 


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Edward Scripps 


Mr. Dini believes the Refounded 
Communists will stay aboard. 

lions. We must open a dialogue. 

Q. Asa former central banker and 
as someone who was a senior In- 
ternational Monetary Fund official 
for 13 years, what do you believe are 
the lessons of the recent Asian cur- 
rency crisis? 

A With some variations, the Asian 
currency crisis is of the same nature 
as the problems experienced by Mex- 
ico in 1995. Substantial capital flows 
into the region have sustained eco- 
nomic growth and tended to prop up 
Asian currencies. The current prob- 
lems prove that in an eta of global 
markets, emerging countries relied 
excessively on fixed exchange rates. 

Sew York Times Service 

Edward WyUis Scripps, 
88, a newspaper executive 
and philanthropist who built a 
publishing company inde- 
pendent of his family s vast 
newspaper empire, died Sept. 
4 at his farm in Charlottes- 
ville. Virginia. 

Mr. Scripps was the chair- 
man and president of the 
Scripps League Newspapers 
from 1931 to 1996. Jack Mor- 
gan, a former vice president 
of the newspaper chain, said it 
was started in 1921 by Jose- 
phine Scripps, Mr. Scripps 's 

When Mr. Scripps became 
president in 1931, there were 
eight newspapers. He built 
the chain to 51 publications, 
mostly small newspapers like 
The Daily Herald of Provo, 
Utah, and The Newport Daily 
Express, in Vermont The 
chain was bought by Pulitzer 
Publishing Co. in 1996. 

Bom in San Diego, Mr. 
Scripps was the grandson of 
Edward Wyllis Scripps, die 
founder of the Scripps- 
Howard Newspaper empire 
and Uaited Press Internation- 
al. He served on the board of 
the Inter-American Press As- 
sociation and was a president 
of its technical center, from 
1955 until 1970. 

MUton Rubincam, 88, 
American Genealogist 

New York Times Service 

Milton Rubincam. 88, a 
dogged researcher who spent 
the better part of his life ex- 
ploring family trees, died Sept. 
9 at a hospital in Washington. 

Mr. Rubincam, who lived 
in Hyatts ville, Maryland, was 
known as the dean of Amer- 
ican genealogists. . • . 

His career was in the fed- 
eral government, but in his 
free time ; Mr. Rubincam pur- 
sued his quest few ancestral, 

He became a landmark ai 
the National Genealogical 
Society, serving four. two- 
year terms as its president in 
the 1940s and ’50s, editing the 
society's . quarterly journal, 
spending 25 years as its book 
review editor and turning out 
2,000 reviews of his own. In 
the 1960s, he was the pres^ 
idem of the exclusive Amer- 
ican Society of Genealogists.. 

Robert Pinget, 78» 

Novelist and Playwright 

New York Times Service 

PARIS — Robert Pinget, 
78, a Swiss-born novelist and 
playwright who first won re- 
cognition as a member of the . 
Nouveau ■ Roman literary 
movement in France in the 
late I950s,died of a stroke in a 
hospital in Tours on Aug. 25. 

Mr. Pinget published 14 
novels, 1 1 plays and several 
books of essays and notes. He 
won a loyal following more 
for his body of work than for 
any single best-seller. 

Mr. Finger’s novel ‘'L’ln- 
quisitoire” (“The Interroga- 
tion”) won the French Crit- 
ics' Prize in 1961, while 
another novel, “Quelqu’un” 
(“Someone”), won theFera- 
ina Prize in 1965. In 1987, he 
was awarded the Grand Prix 
National des Lettres. 


Copter Crash Kills 10 Turks 

DIYARBAKIR, Turkey — A Turkish military heli- 
copter hit electricity cables and crashed Sunday, killing 
10 soldiers on a mission against Kurdish rebels, security 
officials said. 

They said the men died on the outskirts of the town of 
Gevas on the h anks of Lake Van in eastern Turkey. The 
Anatolian News Agency quoted witnesses as saying the 
U.S.-made Sikorsky troop-carrying helicopter crashed 
and exploded. (Reuters) 

6 Sentenced in Mubarak Case. 

CAIRO — An Egyptian court sentenced two pub^ 
Ushers and the editor in chief of a London-based Arabic 
daily to one year in prison with hard labor on Sunday for 
libeling the sons of President Hosni Mubarak 

Two journalists working for the Ashanq al Awsat news- 
paper got the same sentence. The five were fined 20,000 
pounds ($5,900) each for publishing corruption allegations 
against Alaa and Gamal Mubarak. A third journalist con- 
victed of the same charges was sentenced to six months in 
jail with hard labor and fined 15,000 pounds. (Reuters) 

New Algeria Killings Reported 

PARIS — Six civilians, aged 14 to 24. were found 
dead, their throats cut, during the weekend in the latest 
violence in Algeria, and security forces stormed a mosque 
in the capital and killed members of a a rebel group; 
Algerian newspapers said Sunday. 

Liberte newspaper said (he six civilians were killed 
Friday night in die Mazar area. The newspaper also said 
security forces killed four “terrorists” an< 
mosque in Chrarba district in Algiers. 

rer a siege in a 

For the Record 

Hundreds of Zapatista guerrillas and lens of thou- 
sands of their supporters jammed Mexico City's central 
square alter a four-day march in a show of unexpected 
strength for the waning Indian rebellion. (Reuters) 

The Colombian Army has begun a major coun- 
terinsurgency drive in the southeast that the military 
chief. General Manuel Jose Bonett. described as the 
biggest offensive of its kind since 1 990. (Reuters) 

. 1 l ? eaUh authorities in Chile have confirmed 

that 1 1 oft 9 people recently infected with the Hanta virus 
have d,ed. (AFP) 

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+33 {0)1 42 07 57 S9 

U.K. Woman 
Was Headless 
During Surgery 

t\ to ihtr Skltf F»mi ru>/\jh 

LONDON — A surgec 
severed a woman's head froi 
her spinal column, briefl 
leaving it attached only by ih 
spinal cord and major anei 
ies, ro fix a chronic bone prat 

The innovative 17-hoi 
operation on Bridget Fudgel 
-'6. left her head pointing foi 

n ; ^nrecting a conditio 
u u an M°sing spondyliti 
that had kepi her head point 
inn down, almost fused to he 

"She was virtually a reclus 
— she couldn't look up am 
couldn't cross the road." sail 
Julie Hendry, a spokeswomai 
at Frenchay Hospital in Bris 
tol, western England, when 
the operation was performei 
by Steven Gill. "She couldn - 
eat or drink properlv." 

Her head was compfcreb 
detached from the spina 
column. Ms. Hendry said, ther 
repositioned and reattached. 

The operation took place ir 
February, but Dr. Gill onh 
presented it at the British St> 
ciely ot Neurosurgeons las 
' TOl - lAP. Hem;], 


PAGE 3 ' 

Wi *-nl s ( 

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•B +44 171 420 0348 


You will be required to take coniraciuai and commercial responsibility tor the specification, development 
and procurement of hardware and software systems in support of EUMETSAT 1 ? geostationary and polar 
orbiting programmes. 

You will be responsible lor Ihe contractual and commercial aspects ol the preparation and evaluation ol 
tender documentation plus the negotiation and subsequent management of contracts. You will also be 
Involved In the negotiation/crealion ol cooperation agreemenis with national and International 
partners. All of your wotv will be conducted within ihe framework of EUMETSATs contracts and 
financial rules and procedures. 

To be successful, you win need to have a university degree in law. economics or business management 
and have 5-10 years' experience, preferably in the commercial management of contracts for satellite, 
aerospace or high technology products. The ability to deal commercially with complex technical issues 
and to formulate dear legal text is essential. Fluency in either English or French, wilh practical ability in 
the other language, is necessary 

Based In Darmstadt, the post is offered on an initial four-year-contraci and. in reium. EUMETSAT 
provides a very competitive salary and benefits package. 

To apply, pfease-send your CV wrfth covering fetter, quoting reference VN97/11, to EUMETSAT, 

F Jayawant, Postfach 10 05 55, 64205 Darmstadt, Germany. Applications must be In English or 

Candidates must be a national ol one of the EUMETSAT Member States. 

Closing dale 7 October 1997 

Member states: Austria. Belgn/m. 
Denmark. Finland. France. 
Germany. Greece. Ireland, Italy, 
Netherlands, Nomay. Portugal. 
Spam. Sweden Switzerland 
Turkey, United Kingdom 

means business 

Europe's Meteorological Satellite Organisation 
Organisation Europdenne do Satellites Mettorologiques 



Sates : 2,5 billion US dollars - 22 000 employees - 30 tiles and subsidiaries throughout ihe world (9 in Fierce) 

CREATES for its headquarters (based close to PARIS) the position : 


Influencing change in an exciting environment 

departing to fhe Human Resources Director, you will develop, propose and implement the human resources and training strategy 
in effective working relationships with line managers. 

You will initiate and/or coordinate all activities covering fhe full range of H.R. methods and policies : change management and 
organisational development, job description ond evaluation, performance review and potential appraisal, training requirements, 
programs and courses, etc. 

You will participate actively to final selection of applicants for key management positions. 


35 years minimum, bicuftural if possible, graduate, you have similar experience in an industrial and international company. 
An average command of French would be useful. Olher language skills would be an odded bonus. 

The new European is fast becoming the most influential 
and authoritative business publication in Europe. 

In January we will relaunch as a full-colour magazine and we are 
now hiring top-flight journalists and correspondents to work in our 
head office in London and bureaux across the continent. 

Staff jobs and attractive freelance contracts are available in the following fields: 

$ banking & media economics ® transport 
& science, technology and medicine ® information technology 
& investigative reporters to cover the European Commission in Brussels 
& general business reporters « correspondents for the major cities 



Please send your CV with a covering letter in French and/or English and current salary, 
quoting reference GEC.TR./DVP.FORM/22HT to our edvising Con suiter : Richard Benctouil - GROUPE BBC 
1 bis place de Valois - 75001 Paris - France. Fax 01 42 60 35 95. At applications will be treated in the strictest confidence. 





>8-i0. fully bilingual. French - English, to develop ihe sales 
of ihe Paris office of service company. 5be will be 
responsible for expansion, proBt and will have also to hire, 
trjin and supervise French personnel according io 

The candidate must be a self starter, very demanding, well 
organized, determined with strong personality and proven 
pak results. 

Musi be able to negotiate with top French management, 
plenum personality. French working papers indispensiblc. 

Send a tt> Box 394. W. 92521 Study Cedex. Frame. 


ij on Page 4 

Executive Positions Available 


*nr US company lor Facilities 
fcteintfruncft'OSM of large government 
r.suieueirs m Germany 

Spiking wp managers ■ Engineering 
iMtee requited, fluency In Engtsn 
Also seeking personnel and 
contract adrofnstralffls - fluency * 
£ngi«r. and German roqued 

tcswiw ««i quafiy 

Stn S saisy &suw >n arUum to 

atf’.'Kal expend a pus 

please fax resume to USA at 

or mbB « 

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pen a ihe Md J im- 

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as names c Lj5£ i 7*jiwc 
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in the hmBmg needs 3 
nterrestonel bms seeks 



Engfafi mother tongue. 

Wortdng papers esserta! 

Send resume, photo end cover letter ra 
Box 380, WT, 181 Avo Chartas 
de Ondb, aZ52f ffeolfly Cedex 

E xecutives Available 

EHGUSfflfiAN firing in Parts area. 53. 
foera French bhStbct ot Francn com- 
parr; tor 18 yts. apsrtas to aeon as 
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American. Asan and Fiwcfi contends 
Any oiler tor inerestra writ on a regu- 
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HOTEL DRECTOH seeks to nanags 
upscale Euro Hmgl'ChaJeaa'Mar.or 
House. Wi« optimize " ffn 

domesltotoreign markets, especa 1 '-.- 
Amencan dtetras. Would aso te=T-ic 
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national Fax. USA 9?47?i-3971. 

FRENCHWUi 21 connana) aacaw 
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Branch Banking 

Salary: FF230,000-290,000 

A unique opportunity has arisen for an 
experienced retail banker to manage the 
Paris branch of a prestigious American 

The successful applicant will have a 
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preferably also have knowledge of the 
French retail banking system. He/she will 
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Please send your c.v. to: 

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on +44 (0) 171 920 9457 



Admini strative 
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European youth NGO with 100 member organisations 
seeks an Administrative and Financial director from 
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Experience and excellent skills in financial and organisa- 
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with the European institutions and NGO's. as well as excel- 
lent knowledge of English and French are also required. 
The selected person would preferably be below 30 years of 

Three year contract (renewable once), with a gross salary 
BEF 123.851 and special indemnities. CV and tetter of 
application by 29 September to: 

Secretary General Youth Forum, 

120 rue Joseph II. B-1000 
Brussels, fax 32 2 230 21 23, 

e-mail: ^ 

SALES & UAHKET1HG Professional 
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tribune Time for Leadership on the Mideast and Bosnia 

— ^ .... A., that * wo, not sure i. could urging.^- 

Peace for Ulster 

After years of fitful preparation, ne- 
gotiations for peace are set to begin in 
earnest Monday in Northern Ireland. 
The Irish Republican Army has de- 
clared a new cease-fire, the British and 
Irish governments seem committed to 
'ending the violent conflict and the 
largest unionist party, though hesi- 
tating, seems likely to participate in me 
talks in some form. If so, all sides 
would be present Whether the citizens 
of Northern Ireland get the permanent 
peace they dearly want and clearly 
deserve depends on whether Protestant 
and Catholic leaders alike are willing 
to settle for something less than their 

ultimate goals. . 

■ The great effort required to remove 
the obstacles to these talks has ob- 
scured the difficult task ahead, which is 
nothing less than negotiating an end to 
the civil strife that has killed 3,200 
people in the last 30 years. The talks 
are scheduled to end in May, although 

this daie may slip if agreement is close. 
A peace accord would require rati- 
fication by the British Parliament and 
approval of voters in Northern Ireland 
and the Irish Republic. 

The opening positions seem irre- 
concilable. Protestant leaders, who 
represent the majority of North era Ire- 
land's citizens, insist that the union 
with Britain be maintained and that the 
IRA permanently stop terrorism. Cath- 
olic leaders, including the Sinn Fein 
representatives at the negotiating table. 

. have long demanded that the ties with 

■ London be severed and Northern Ire- 
land reunited with the rest of Ireland. 

To break free of this straitjacket, the. 
' negotiators should begin by searching 

■ for small steps to build confidence and 
trust. The most urgent is for the na- 
tionalists to reassure unionists by re- 
linquishing some of the IRA's huge 
stockpile of arms. Sinn Fein was ad- 
mitted to the talks with the tacit un- 
derstanding that this would happen as 
talks proceeded. But last week, the 
IRA announced that it would not give 

up any arms until a final settlement 
was reached. Eventually all sides must 

If some early progress can be made, 
the outline of a possible settlement is 
visible in a series of documents issued 
by the British and Irish governments 
since 1985. It would keep Northern 
Ireland part of Britain, while guar- 
anteeing Catholics more equal treat- 
ment and closer ties with Ireland. 

The changes would begin with the 
devolution of power from the British 
Parliament to a new local parliament in 
Northern Ireland, which is also hap- 
pening in Scotland and Wales. Voting 
would be weighted to give Catholics 
the full representation they have been 
denied in the past. Catholics would 
also benefit from measures to correct 
historic discrimination. Jobs would be 
directed to Catholic areas to reduce 
Catholic unemployment, which is 
twice that of Protestants. The Royal 
Ulster Constabulary would also be re- 
formed to use community policing and 
reach out to Catholics, many of whom 
see it as an occupation force. In ad- 
dition. nationalists would win closer 
ties between Dublin and Belfast, per- 
haps in the form of joint boards to 
cooperate on issues like public health, 
agriculture, tourism, security and 
economic measures. 

Few people expect that hard-liners 
on both sides, who have found both 
political comfort and financial profit in 
the conflict, will honor any agreement. 
But a settlement is likely to have wide- 

spread public support and communi- 
ties may gradually marginalize the vi- 
olent groups. In the end, both the 
behavior of the negotiating parties and 
adherence to any agreement depend on 
the desire for peace among Northern 
Ireland’s citizens. That desire is strong. 
The leaders gathering in Belfast Mon- 
day would not be there were it not for 

the pressure for peace that is so palp- 
able in Northern Ireland. 

able in Northern Ireland. 


What Albright Didn’t Do 

Secretary Of State Madeleine Al- 
bright’s public candor on the Middle 
East is refreshing. Visiting the region, 
she pronounced her trip less than a 
success: She did not get the Israelis and 
Palestinians even to the point where 
they can consider resuming negoti- 
ations. She hammered on Yasser Ara- 
fat to step up the struggle against ter- 

rorism. including “taking apart the 
infrastructure of Hamas." The Israelis 

infrastructure of Hamas." The Israelis 
she told to stop expanding settlements 
unilaterally. It's good to end the mum- 
bling about procedure and let the 
parties know she won'r return to the 
region just "to tread water." 

Mrs. Albright, however, did not do 
the one thing the United States might 
do that goes beyond inducing the Is- 
raelis and Palestinians to talk and that 
actually offers a chance of contributing 
to an agreement She did not close the 
telling gap in American policy — its 
failure to endorse the Palestinians’ 
goal of a state. Instead, as American 
officials traditionally have done, she 
Simply pledged her support for the 
Palestinians’ "legitimate political 
rights" without defining wbat those 
rights might be. 

This hesitation to accept the obvious 
and the necessary is what unbalances 
American diplomacy. The Clinton ad- 

ministration supports security and 
peace for the Israelis in many concrete 
ways but denies parallel support for the 
Palestinians’ prune objective. 

The administration takes this po- 
sition out of a desire nor to get too far 
out in front of Israel's seemingly ir- 
reducible resistance to Palestinian 
statehood. The strange thing is. 
however, that Washington may be be- 
hind the curve of Israel’s own Likud 
government Israeli authorities, in- 
cluding Prime Minister Benjamin Net- 
anyahu. have been indicating they 
might accept a Palestinian state with 
sovereignty over its territory. These 
hints cannot yet be regarded as reliable 
expressions of Israeli policy. The sug- 
gestion is, nonetheless, that Israel is 
open to a Palestinian state with a flag, 
authority over almost all Arab West 
Bankers and what is called a "Je- 
rusalem capital' ’ in an undivided Je- 
rusalem. Israel would insist on pro- 
tections — heavy and intrusive 
protections — for its security. 

It is not too early to start thinking 
how the United States might help en- 
courage such a negotiation, difficult as 
it might be. This is where the pos- 
sibility of a substantive American con- 
tribution needs to be explored. 


On a Clear Night 

Not long after the sun bums out, 
some five billion years from now, the 
galajty we live in may collide, or in- 
termingle catastrophically, with the 
Andromeda Galaxy (M3 1 j, 2.2 million 
light-years away. For now that galaxy 
remains pretty much where it has al- 
ways been: a few degrees below and to 
the right of the conspicuous, W-shaped 
constellation called Cassiopeia, which 
lies halfway up the northeastern sky at 
bedtime this season of the year. 

This could be a marquee event. In- 
deed. the impending collision of these 
two galaxies, with six or seven hundred 
billion stars and all their attendant 
worlds, is the kind of celestial hap- 
pening that belongs on everyone’s 
worry list. In fact, a person would do 
well to resolve to fret about nothing 
less significant than this event, com- 
pared with which the sun’s flaming-out 
■ is a mere bagatelle. At least that is how 
it seems to someone when lying in a 
Wyoming hayfieJd looking up at the 
. sky on a warm September night In the 
near distance, the lights of'Sheridan 

cast a benign glow, and in the far 
distance, M31 dispels its faint cloud of 
light It is the kind of night in which the 
constellations seem like old friends. 
Scorpio, the Scorpion, has hooked its 
tail into the Bighorn Mountains. Del- 
phinus, the Dolphin, surfs in the wave 
whose foamy crest is the Milky Way. 

Sagittarius — the Bow-hunter in this 
part of the world — lies at the place 
where the Milky Way plunges into the 

In the cononwood draw where Little 
Goose Creek flows, deer cough from 
time to time, and a great homed owl 
screeches punctually. A cricket in the 
hay stubble emits a pure, intermittent, 
staccato whine that could as well be the 
sound of some pulsar deep in the re- 
cesses of the universe. 

It is almost time for Saturn to rise, a 
bright spot whose light is as ancient as 
the oldest stone tools ever found on 
Earth. Near and far. past and present, 
bisected only by the observer, seem 
almost to mergeon a night this clear. 


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W ASHINGTON — President Bill 
Clinton has carefully rationed his 

By Jim Hoaglarid 

visible involvement in di e 111051 
volatile conflicts of his presidency, 
Bosnia and the Middle East. But turn- 
ing points in both conflicts now de- 
mand a strong presidential commitment 
to halt the slide toward new hostilities. 

Mr. Clinton cannot simply walk 
away from these conflicts and let the 
warring sides stew in their own mur- 
derous juices, however tempting that 
course may seem. 

America is too deeply involved in 
the security of Europe, the survival or 
Israel and orderly commerce with the 
Middle East to become a passive 
bystander. Even without the shadow or 
the Cold War. turmoil in these regions 
disrupts U.S. management of its global 
alliance system with Europe and Japan 
and would inflict enormous costs on 
the world economy. . 

Bosnia and the Middle East have 
coincidentally reached dangerous dead 
ends at about the same rime, over the 
same abstract if ancient issue: self- 

In her exploratory talks with Israeli 
and Palestinian leaders. Secretary of 
State Madeleine Albright confronted 
the reality thai the confidence-building 
steps of the Oslo peace accord have 
turned into confidence-destroying 

measures in the hands of Yasser Arafat 
and Benjamin Netanyahu. 

Mr. Arafat’s betrayals and weak- 
nesses on security for Israelis are mani- 
fest. Bui the big change to the process 
has been brought by Mr. Netanyahu’s 
willingness to contemplate the creation 
of a Palestinian state on one condition 
only: that this state not have ‘‘un- 
fettered seif-determination," as he put 
it to me some mouths ago. 

Mr. Netanyahu's view is not un- 
reasonable in itself: The Palesti ni a n s 
will have to accept demilitarization and 
heavy Israeli involvement in border 
controls as the price of statehood. That 
would have been true under the pre- 
vious Labor government as well. 

Bur the Palestinian state Mr. Net- 
anyahu would permit to emerge from 
final status negotiations would be a state 
in name only, lacking geographic or 
functional coherence. This perception 
has helped undermine Mr. Arafat, who is 
now neither the solution nor die problem 
for Israel but an irrelevance, as Hamas 
and other radical groups grow stronger. 

Until now the Clinton administra- 
tion has refused to adopt a position on a 
Palestinian state, not least because 
Washington did not want to back an 

outcome that it was not sure it could 
deliver. . 

This leaves Washington m . fb e 
position of being less positive 
about Palestinian statehood than is 
Mr. Netanyahu. 

But as Hemy Kissinger and others 
have pointed out, Palestinian statehood 
is now on die agenda of any senous 
Middle East peace effort. American 
willingness to work with Mr. Netanyahu 
and Mr. Arafat on creation of astatethat 
would not endanger Israel is the stick of 
diplomatic dynamite that could break 
open the Middle East logjam. 

Mr. Clinton should offer a presiden- 
tial commitment to do tins. He needs at 
the same time to protect Jordan’s sen- 
sitivities and the possibility of a three- 
state confederation in die near future. 

Mr. Clinton is well positioned to 
emphasize that this is a practical polit- 
ical solution to a crisis. 

Thai same practical approach to self- 
determination applies to Bosnia. The 
presence of American and other troops 
in Bosnia has stopped the killing and 
eased intolerable strains within the At- 
lantic allianc e. Those objectives are 
still worth pursuing by extending that 
military presence beyond next June's 
deadline for an allied pullout. 

Critics led by Senator Kay Bailey 
Hutchison, Republican* of Texas, are 

formal partition of the country s herb, 

Muslim and Croat areas. 

Only then, she says, will the critics 
support keeping U.S. troops there, in a 
less open-ended peacekeeping role. . 

De facto partition of Bosnia is an 
acceptable outcome to the United 
States if it can be accomplished peace- 
fully, on die ground. • . 

TTiis possible outcome is obscured 
by the rhetoric of Dayton but is implicit 
in the logic of the accord. A renun- 
ciation of the pact’s rhetorical cover by 
Mr. Clinton, as demanded by Senator 
Hutchison, would be premature and. 
dangerous. He needs instead to build 
support at home for anew extension far, 

the peacekeeping force. 

Burned by an early overemphasis on 
nation building in Somalia, Mr. Clinton 
has been cautious in his use of Amer- 
ican and diplomatic power abroad. He 
has resisted entanglement, in big-pic- 
ture doctrines, preferring ad hoc ap- 
proaches on foreign policy to abstract 


But now is the time for bold and 
visible leadership, working for change 
in the Middle East and continuity in 
Bosnia. This is die stuff of presidential 

The Washington Post. 

Engagement With China Is the Wisest Course for America 

S INGAPORE — National in- 
terests can change over time. 

By Joseph S. Nye Jr. 

and that is nue for China as well 
as the Uoired States. Every 
country has a wish list that is 
like a menu without prices. De- 
fining national interests in con- 
crete" situations involves under- 
standing constraints and prices. 

Left to itself. China would 
probably like to force the return 
of Taiwan, ensure its domi- 
nance of rhe South China Sea 
and be recognized as the 
primary state in the East Asia 
region. But Chinese leaders 
have to consider prices and con- 
straints. Those constraints 
come from other countries, and 
from trade-offs among China's 
own objectives. 

Given the priority Beijing at- 
taches to economic moderni- 
zation and the reliance of the 
Chinese economy on external 
markets and resources. China 
faces a constraint of its own 
making. It also faces a constraint 
from die reality of American 
power, which is unlikely to van- 
ish. Finally, it faces constraints 
in terms of its relations with 
other countries in the region. 

In the real world, it is quite 
common for countries to re- 
define their interests. For in- 
stance. in the early 1980s, 
China defined its interests as 
avoiding involvement with the 
nuclear nonproliferation treaty: 
in the 1990s, with some minor 
exceptions related to its history 
with Pakistan. China defined its 
interests as adhering to the 
treaty. Similarly, in 1995 China 

defined its interests as avoiding 
a treaty banning nuclear 
weapons* testing; in 1996, at the 
risk of becoming isolated and 
losing face with other countries, 
China redefined its interests and 
signed that treaty, too. Obvi- 
ously, how China’s national in- 
terests will evolve will depend 
on the policies of the United 
States and of China's neighbors 
in Asia and the Pacific. 

Die Clinton administration 
describes its policy toward 
China as "constructive engage- 
ment." but the debate between 
"containment” and ■'engage- 
ment" is overly simple. En- 
gagement is more an attitude 
than a detailed policy, and cre- 
ating constraints is a natural part 
of any well-designed policy. 

Despite the descriptive inad- 
equacy of the slogans, however, 
the orientation of attitude that 
"engagement" signifies does 
matter. It means that the United 
States has rejected the inevi- 
tability of conflict. Mr. Clinton 
has told President Jiang Zemin 
of China that "a stable, open 
and prosperous China” — in 
other words, a strong China — is 
in America *s interest. ’ * We wel- 
come China to the great power 
table. But great powers also 
have great responsibilities.” 

The United States has also 
reaffirmed its commitment to a 
"One China" policy, thus rul- 
ing out any flirtation with [he 
idea of independence for 
Taiwan — the single most dan- 

gerous scenario for potential 
conflict between the United 
States and China. The United 
States remains committed by 
law and policy to ensuring that 
Taiwan cannot be taken over by 
force, but not to defending an 
independent Taiwan. 

Engagement does not pre- 
scribe how to handle hard issues 
like Taiwan, trade or human 
rights. It did not preclude the 
United States from sending two 
aircraft carriers to waters off 
Taiwan in 1996 when China 
was staging ballistic missile 
tests and military exercises 
close to the island ahead of its 
presidential elections. Nor did ir 
preclude the United States from 
insisting on proper conditions 
for its objective of fostering 
Chinese entry into the World 
Trade Organization. 

Chinese complain that en- 
gagement is ambiguous, difficult 
to understand and sometimes 
looks like containment. For in- 
stance. they complain strongly 
about the reaffirmation of the 
U.S.-Japan security treaty. The 
American alliance with Japan, 
where the largest number of U.S. 
troops in East Asia are stationed, 
is critical to U.S. strategy. 

In April 1996, Mr. Clinton 
and Prime Minister Ryu taro Ha- 
shimoro of Japan publicly af- 
firmed the work of a joint group 
that redefined the bilateral se- 
curity treaty as the basis for sta- 
bility in die region after the Cold 
War. That reaffirmation may 

turn out to be one of the most 
important policy developments 
for the Asia-Pacific region. It 
means that C hina cannot play a 
Japan card against the United 
States, or try to expel the Amer- 
icans from the area. From that 

position of strength, the United 
Scares and Japan can work to- 

Scares and Japan can work to- 
gether to engag e C hina as its 
power grows in die region. 

No one can be sure that the 
constructive engagement s tra- 

ce ns tractive engagement stra- 
tegy will work. History has its 

The strategy builds 
on current 
investments and 
strengths. It is 
reversible if 
conditions change . 

ironies and accidents. But the 
strategy is better than any of the 
alternatives. It builds ou current 
investments and strengths. Ir is 
reversible if conditions change. 
An aggressive China could 

The United States Wfll re- 
main the largest power in die 
world well into the next cen- 
tury. The American presence in 
East .Asia provides a stability 
which, in the absence of other 
institutions, has benefits for all 
countries in the region. The 
strategy of engaging China as a 
responsible major power opens 
a future of joint benefits. 

So long as the United States 
exercises its power in a rea- 
sonable way so that other conn- 
tries, including China, continue 
to benefit from the stabilizing 
effects, and so long as America 
invests wisely to maintain its 
power resources, it is unlikely 
that any country or coalition 
will be in the position of a 
strong challenger. 

In drat sense, the prospects 
for avoiding conflict with China 
look better the more the United 
Stares maintains its strength in 
the East Asia region, and avoids 
the counsel of pessimists about 
the future of China and the 
United States who would seize 
the moment to create self-ful- 
filling fallacies. 

stimulate a new polity. 

How China will behave as its 
power grows is an open ques- 
tion. Unconstrained, it might 

This comment was adapted 
the International Herald 

tion. Unconstrained, it might 
well wish to expel the U.S. mil- 
itary presence from East Asia 
and exercise hegemony (despite 
its expressed distaste for the 
concept) over its neighbors. But 
in the real world of constraints, 
states can learn to define their 
inrerests in practical ways. 

by the International Herald 
Tribune from a Sept. 14 address 
by the writer to the annual con- 
ference of the International In- 
stitute for Strategic Studies. Mr. 
Nye, a former VS. assistant 
secretary of defense for inter- 
national security affairs, it 
dean of the John F. Kennedy 
School of Government at Har- 
vard University. 

A Latin American Bosnia: ‘Dirty War’ Rips Colombia Apart 

N EW YORK — "Your time 
has come. . . . We have come 

It hascome. ... Wehavecome 
ro clean up this region just as we 
are doing in other provinces, and 
we will start with you. We know 
your movements very well We 
are following step by step." 

This threat was not issued by 
Serbs engaged in ethnic cleans- 
ing in Bosnia. It came from 
paramilitaries in Colombia who 
slaughter civilians in that coun- 
try’s growing civil war. The 
reality it reflects should cause 
the international community to 
recast the common image of 
Colombia as a cocaine republic 
whose civilian "democracy” 
has been corrupted but whose 
military', committed to the rule 
of law, remains steadfast with 
its American ally in the war on 
drugs and leftist'guerrillas. 

Colombia, in reality, is 
something different: a failing 
slate where murderous warlords, 
with the tacit cooperation of the 
military and narco- trafficking 
organizations, have pushed ihe 
country toward de facro parti- 
tion. In the process they have 
marginalized many of Colom- 
bia’s democratic institutions. 

Colombia is tearing itself 
apart. It is fast becoming a Bos- 
nia. or the closest tiling to it in 
the hemisphere. There are three 
parties to Colombia’s struggle: 

Private paramilitary armies. 
Sponsored by wealthy land- 
holders and protected by the 
regular Colombian army, they 
now operate with murderous 
impunity across half of the na- 
tional territory. 

Left-wing guerrilla organi- 
zations: Long the de facto au- 
thority wherever the stale failed 
to establish ity presence, they 
have expanded their reach to 
more ihan half the nation's rural 
municipalities. They kidnap 
wealthy foes, exiort "war 
taxes" to fund their activities 
and mete out their own brand of 
justice, contributing to a third of 
Colombia's political killings. 

The government: Increas- 
ingly irrelevant, it is struggling 
to regain its authority over the 
military and its ability to protect 
the people. 

li is in this situation that the 

By Ana Carrigan and Robert O. Weiner 

United Nations set up a human 
rights field office in Bogota in 
May. Its job is to ensure official 
compliance with UN recom- 
mendations on human rights. 

Ensuring the success of this 
delicate mission will be among 
the complex and urgent chal- 
lenges facing the new High 
Commissioner for Human 
Rights, President Mary Robin- 
son of Ireland. Her work is cut 
out for her. The "dirty war” in 
Colombia — the great excep- 
tion to Latin Americas 
phoemxlike emergence from 
dictatorship and civil war — has 
exterminated or driven into ex- 
ile a generation of grass-roots 
leaders, and is producing human 
suffering on a scale reminiscent 
of Europe's worsi chapters. 

As was the case in Bosnia, 
civilians are the main target in 

Warlords* with the 
tacit cooperation 
of the army and 
narco- trafficking 
groups * have 
pushed the country 
toward partition. 

this struggle, with the paramil- 
itaries inflicting some 60 per- 
cent of the casualties. 

Colonel Carlos Alfonso 
Velasquez, the former No. 2 
commander in northern Colom- 
bia — he was cashiered by the 
high command last December 
for criticizing official failure to 
address the savagery of the 
paramilitaries — says the mil- 
itary has adopted a logic thar 
regards civilians in contested 
zones as part of the guerrillas' 
political structure The paramil- 
itaries massacre these civilians, 
fulfilling the military's desire 
for high guerrilla body counts 
and enabling their sponsors to 
consolidate and expand their 
land holdings. 

The killing is displacing fam- 
ilies on a scale never seen south 

of the Panama Canal. Unieef 
reported earlier this year that 
one million Colombians — 
about one out of every 40 cit- 
izens — have been forced from 
their homes. 

Out of the war zones of rural 
Colombia virtual rump republics 
are emerging, accountable only 
ro paramilitary warlords — to 
men like the cocaine millionaire 
and landowner Carlos Castano. 
Described by Newsweek as 
"Latin America’s most notori- 
ous death squad leader" and by 
the U.S. State Department as a 
"known drug trafficker,’' Mr. 
Castano is the most powerful of 
a dozen or so paramilitary chief- 
tains who operate autonomously 
yet increasingly see the benefits 
of working together to maximize 
their political ciouL 

The Ratko Mladic of Latin 
America. Mr. Castano has mur- 
dered his way to control of a 
neo- feudal empire stretching 
across half of Colombia. 

In Mr. Castano’s criminal ca- 
reer can be traced Colombia’s 
institutional collapse. Accord- 
ing ro Colombian prosecutors, 
he was a star pupil at notorious 
hit-squad training schools, 
sponsored by the Colombian 
-Army, funded by the Medellin 
cartel and ran by Israeli and Brit- 
ish mercenaries. The school's 
graduates delivered protection 
For the drug barons' properties 
and provided the army with cov- 
er for "dirty war” practices. 
Later. Mi. Castano sw itched al- 
legiance to the Cali cartel when 
the Cali capos joined with the 
slate’s security forces to destroy 
their chief rival, the Medellin 
druglord Pablo Escobar. 

Despite several arrest war- 
rants tor murder. Mr. Castano 
enjoys a spotless criminal re- 
cord, He has never been arrested. 
When reporters from The New 
York Times and Newsweek ar- 
ranged to visit and interview Mr. 
Castano this spring, he noted 
blithely lhai the local army base 
was "just over the hill" from his 

With rite civilian political op- 
position decimated by four de- 

cades of murderous power- 
sharing schemes among corrupt 
elites, the struggle against vi- 
olence and impunity has fallen 
almost exclusively to human 
rights groups. 

Ten years of dogged research 
and advocacy before the UN 
have begun to pay dividends. 
The Colombian government. 

bombarded by critical reports 
and recommendations from 
every expert body in the UN 
system, reluctantly agreed to 
permit the High Commissioner 
to establish an office in Bogota. 

The office faces two main 
obstacles: Nativists and dem- 
agogues have attempted to whip 
up resentment against the UN’s 
presence in Colombia, while die 
government seeks to put a polit- 
ical spin on the High Commis- 
sioner's role that would down- 
play serious public scrutiny. 

And, like other offices of the 
High Commissioner, the 
Bogota office has been 
hampered by an institutional 

vacuum in Geneva, the home of 
the UN’s Human Rights Center. ^4 
Nominally responsible for giv- 
ing direction and support to its 
missions, the Geneva center has 
been remarkably ineffective. 

Mary Robinson will need to 
revitalize Geneva's human 
rights structures if the new of- 
fice in Bogota is to succeed. By 
so doing she would maximize 
the chances of the UN inter- 
vention's leading the Colom- 
bian government to dismantle 
the paramilitaries, confront die 
military's impunity, clean up an 
abusive justice system and re- 
store the rule of law. 

Ana Carrigan is a free-lance 
writer and the author of "The 4 
Palace of Justice: A Colombian 
Tragedy. “ Robert O. Weiner co- 
ordinates the Larin America and 
the Caribbean Program of the 
Lawyers Committee for Human 
Rights. This comment was con- 
tributed to the Irish Times (Dub- 
lin) and to the Herald Tribune. 


1897: Balzacian End 

PARIS — The career of An- 
gelique Cruchot might have 
been taken from Splendeurs et 
miseres des courtisanes. Cer- 
tainly Balzac’s masterpiece con- 
tains many such lives. Cruchot 
sprang from the common people, 
became famous as the Comtes se 
de Montignon and died from a 
fractured skull in the moat of the 
fortifications on the Montreuil 
side of Paris. Her hour of 
prosperity was under the Second 
Empire, but her beautiful castle 
of cards was overthrown when 
the war broke oul A large num- 

the harbor and have confiscated 
ninety-six cases of liquor. The 
Customs officers say she was 
within the three-mile limit, but 
the captain declares be was 
boarded twenty-five miles off 
shore. The ship also was report- 
ed to have han codebooks con- ^ 
taining the names of prominent * 
hotel owners. The captain denies 
he was engaged in illicit trade. 

ber of papers, photographs and 
autographs, which she often pro- 
duced in support of her state- 
ments, have been burnt in ac- 
cordance with her will. 

1922: Ship Captured 

NEW YORK - Prohibition 
agents have captured the British 
schooner Gardner just outside 

1947: Luxury Scam 

^ANKFURT — Alleged to 
have dealt in cars and diamonds 
and to have sent thousands of ■ .. : 
dollars of illegal profits to the . 
United States, Mrs. Ann Bach- 
man has been accused by the • 
American Army of being the 
* brains” in a black market ring. 

At present serving a ten week jail 
sentence for attacking a Frank- 
furt taxi driver with a fountain ^ 
pen. Mis. Bachman, together^V-:-. 
with her husband and a sergeant tk. ’■ 
living in the same house, is to be 
toed soon in a military coart 

PAGE 3' 

\ jft lE, WEDNESDAY, SEPTEMBER a*, 1997 


*‘»r Ainerii 



Excuse Me, Madam , He Says He’s Adam 

By William Irvine 

N EW YORK — Inventing palin- 
dromes — words or phrases that 
read the same coming or going — has 
been -a worthwhile way to waste an 
afternoon since at least’ the third cen- 
tury B.C.. when Sotades created his 
first palindromic sonnet. It takes pa- 
tience. but the results are often sur- 
prisingly rewarding. 

Sometimes the best palindromes just 
appear out of thin ain Logophiles every- 
where were as elated about uie victory of 
Aniim Cun mn in the New York City 
Marathon as they were saddened by the 
? f Mr. Shakur (Tupac's caput). 
Before sharpening your pencil, 
study “l Love Me. Vol. 1” (Algonquin 
Books of Chapel Hill), by Michael 
Donner. a scintillating new encyclo- 
pedia of palindromic phrases. In it are 
such compelling examples of the an as 
sb >b mystic ate tacit symbols and ah! a 
Mayan an a Yamaha! 

Some of the best palindromes are 
imports. The French, for instance, are 
crazy for them. Among my favorites: 
Eh. ca va. la cache ? (How’s the cow?). 
Tit Tas trap ecrasc. Cesar, ce Port-Salut 
i Cesar, you overcrushed the Port-Sa- 
lut ).A I' aurcl die alia, elle le tua la (She 
went to the altar and killed him there). 

Macaronic verse, in which two or 
more languages are interwoven, one of 
which is traditionally Latin, is one of the 
most exotic kinds of wordplay. The 
form dates to the 16th century, when 
Teofilo Folenao published a poem 
called "Liber Macaronices’ ’( 15 17) that 
combined . macaronic Latin with ele- 
ments of Italian and Lombard dialect. 



While there is not much call for 
macaronics nowadays, its cousin the 
homophone is alive and well. Con- 
noisseurs of the Franglais humor in 
F.S. Pearson’s splendid “Fractured 
French’’ books will appreciate Or- 
monde de Kay's classic "N’Heures 
Souris Raines ” (Clarkson Potter), in 
which the author has constructed 
French poems that, when read aloud, 
sound like English Mother Goose 
rhymes (Roc a bail hey his. on Jciniir 

Two of the most entertaining (and 
frightening) scholarly journals are 
good reading for lovers of wordplay, 
word Ways: The Journal of Recre- 
ational Linguistics, a quarterly, pub- 
lishes articles by both serious amateurs 
and linguists in a manner that is erudite, 
informative and accessible. 

Recent issues featured such topics as 
palindromic names of real people (in- 
cluding Oyo Oyo. former member ot 
the international football federation: 
good old Lon Nol of Cambodia; and 
The lesser-known U Nu. the Burmese 
prime minister from 1947 to 1962) and 
a round-table discussion about gen- 
erational perception of references to 
popular culture in New York Times 
crossword-puzzle clues. 

For those who are just hateful, hor- 
rible. unreconstructed and politically 
incorrect, there is Maledicta: The In- 
ternational Journal of Verbal Aggres- 
sion. a Beelzebubian biannual that 
could only be described as scabrous. 

Maledicta’s mission statement de- 
scribes it as specializing in "un- 
censored studies of offensive and neg- 
atively valued words from all languages 
and cultures,” and this is certainly a 
case of mild understatement. Yet it is 
compelling and often hilarious. 

Consider the scholarly treatise on 
"Domino’s Pizza Jargon," in which 
the author clues us in to the in-house 
glossary 1 of pie making. (An Edgar 
Allen pie? Pepperoni and onions: P.O.) 
There is also a 30-page graffiti treatise 
entitled “Dutch Soldiers' Latrinalia." 
a translation of Mozart's later letters 
presented as evidence of his Tourene's 
syndrome (and very convincing it is), 
and an analysis of British phone sex 
advertisements. Perfect reading for an 
Indian summer afternoon! 

William Irvine, the author of 
"Madam I'm Adam" and "If I Had a 
Hi-Fi." is an editor at House Beautiful. 
William Safirc is on vacation. 

Sen \Wk Tunes Sentee 

A Biography 

By Tom Hiney Illustrated, i/o pages. 

$ 20 . Atlantic Monthly Press 

Reviewed by Ben Brantley 

H ere is Philip Marlowe — the fic- 
tional detective, prototypical lonely 
guy and spawner of as many imitators as 

Elvis considering an explanation for 

a crime in* ‘The Big Sleep" 11938). ihe 
first novel in which he appears: “It 
seemed a little too pat." he recalls think- 
ing as he sat in his office ori what was of 
course a rare rainy day in Los Angeles. 
"It had the austere simplicity of fiction 
rather than the tangled woof of fact.” 

And so the explanation turns out to be 
not even half of the whole messy story’. 
No way would Raymond Chandler. 
Marlowe’s creator, give his hero a mys- 
tery that could be reduced to the son of 
precise, geometric formulas Agatha 
Christie specialized in. Or. for that mat- 
ter, a conclusion that readers could ab- 
solutely be sure they understood. 

When the director Howard Hawks 
was working on the movie version of 
"The Big Sleep," he famously cabled 
Chandler to ask him who exactly had 
killed one of the book’s violently dis- 
patched victims. Chandler's response: 
"No idea.” 

' Like his writings. Chandler s life was 
a "tangled woof” that doesn't decon- 
struct naturally, something that any bi- 
ographer of the novelist has to reckon 


By Alan Truscott 

T O test yourself on the de- 
fense "of the diagramed 
deal, cover the East and South 
hands. You are West defend- 
ing two no-trump after South 
has opened one no-trump, 
showing 15-17 points, and 
subsided following a stayman 
response. You lead a spade 
and dummy's queen is 
played, won by East with the 
ace". He returns the three, and 
you capture South's nine with 
ihe ten. Now your six brings 
your partner’s jack and 
South's king, with dummy 
throwing a heart. 

South leads the club king 
and vou hold up your ace. 
You win it next rime when the 
queen is led. and notice that 

your partner thows the dia- 
mond deuce. You are now 
looking at the position be- 

The routine move is to cash 
the spade winner and lead a 
heart, since partner has dis- 
couraged in dimonds. But 
partner’s signals are sugges- 

* — 

9 Q J 6 
0 A 7 
+ a 7 6 


* 8 — 

V 10 5 4 — 

0 Q 1C 3 — 

*J - 

tions. not commands, and 
should not be obeyed 

West must keep thinking. 
He knows from the bidding the 
South began with 15 points, of 
which 8 have appeared in the 
black suits. If South's 7 red 
points are king of hearts and 
king-jack of diamonds, the de- 
fense has an easy six tricks. 

But he might have ace of 
hearts and king of diamonds, 
in which case the fate of the 
contract is in the balance. It 
would be fatal to play the 
spade winner, since South 
would be able to discard a 
club, unblocking the suit and 
eventually scoring dummy's 
clubs for eiehr tricks. It is vital 
for West to lead diamonds at 
even opportunity. As the 
cards lie, this defense drives 

out the diamond ace before 
South can clear clubs. 

This is the only successfuU 

? Q J 6 2 
0 A7 


* 10 S 6 4 
9 10 5 4 
•> Q 10 3 

♦ A J 3 

* A J 7 3 
0 K 9 6 
v J8542 



1 Amo. . 

amat (Latin 

s College prep 

•Thin and bony 
14 Singer-actress 
is “Picnic" 

ie Daddy 
little girt 
1? Prefix with 

ia Years and years 
it Get together 

20 Demonstrate 
affection like a 

23 Sahar alike 

24 Khan (ex of 

Rita Hayworth) 

as Place to park a 

2 S French cheese 

31 Krazy ot 

the comics 

34 “Tiny* A! bee 

35 Tugboat sound 
33 Prefix with 


37 What a plumber 
says to noisy 


t? A73 
0 K 9 6 
* K Q 10 9 

Both skies are vulnerable. The bid- 

South West North East 

1 N.T. Pass 2 * Pass 

2 c Pass 2 NT. Pass 

Pass Pass 

with. Stan with the consideration that 
this originator of a brooding American 
archetype (and for better or worse, one 
of the’ most Influential of American 
writers) was, though bom in the United 
States, educated almost entirely in Eng- 
land and fought for the British in World 
War I. 

He was a wild alcoholic with an up- 
per-class schoolmaster’s manners, a re- 
lentless denigrator and aggrandizer of 
his own work, a gentlemanly caretaker 
of a wife nearly two decades his senior 
and the inventor of a tough gumshoe 
who spouted ornate metaphors and 
whose cynicism was of a most romantic 
strain. The contradictions are easy' to 
enumerate, less so to reconcile. 

Chandler himself had a low opinion of 
literary biographies. “Who cares how a 
writer got his first bicycle?” he wrote to 
his British publisher, Hamish Hamilton. 
He might not have objected too strongly, 
however, to Tom Hiney’s "Raymond 
Chandler. A Biography." a modest, 
compact and reader-friendly overview 
of a complicated man and his times that 
has the virtue of interpretive restraint. 

Hiney, a London journalist in his late 
20s. has no analytical axe to sharpen 
here, nor much in the way of new rev- 
elations or insights. And his book 
couldn’t possibly have the impact or 
shock value that Frank McShane’s 
“Life of Raymond Chandler” did in 
1976. with, if nothing else, its revel- 
ations about Chandler’s drinking 



Hiney does, however, have a clear, 
unpretentious style; a judicious, if oc- 
casionally strained, sense of the impor- 
tance of historical context, and a partisan 
respect for his subject that stays shy of. 
the excesses of idolatry. He avoids tand 
it’s a serious danger) being infecred by 
Chandler’s deep purple lyricism. 

The book also takes full advantage of 
Chandler's status as an indefatigable 
correspondent and essayist and wisely 
lets his voice dominate. 

Chandler didn’t start writing fiction 
until he was in his late 40s, after an odd 
and varied career that included a lu- 
crative period in the oil business, set off 
by a nomadic lifestyle the and his wife; 
Cissv. changed residences on an av- 
erage of once a veari that would persisT 
until his death in 1959. And because he 
was an unreliable retailer of his own 
past, his biography becomes fully vivid 
onlv after his fame has arrived, and his 
life’ begins to be documented by others. 

Hinev picks a ripe medley of an- 
ecdotes" and observations to portray 
Chandler’s fabled period as a Holly- 
wood screenwriter, during which he 
wrote "Double Indemnity’” with Billy 
Wilder, and his saturnine retirement to 
La Jolla. 

And the book’s last chapter is both 
riveting and upsetting in its description 
of Chandler’s drink-addled final five 
years, after the death of his beloved 
Cissy, for whose substitute he vainly 
and desperately searched. 

JVf u Ytirh Times SrtTiff 

Solution to Puzzle of Sept. 12 

□DDoa GHaaoaaa 
gnaag m sen sen scan a 
munum □□Hananaa 
□□sananaB ggaa 

□on sinnn aciEianH 
bed nnanan bid a 

□□m QaaaBH aaa 
ssaona QggBgSi 
□□□sqb aaaaaaa 
□esq aaaaaaaaa 
□anaaaaaa agaga 
saaatDsasa □□□□□ 

1 BBaaaBBB aaaaal 

40 Days before big 
«i Bands 

42 Preferred 

43 TV room 
«4 Therefore 
45 Vertebral 


4t Exploit 
«7 Gloomy guy 
48 Declines, as a 
sa Where 

Leonardo was 

ST Oklahoma city 
sa Atmosphere 
sa part at the 

so Sicilian blower 
•i Ribald 
02 ”E pkjribus 
unum," e.g. 
64 Dummies' 

1 "Woe is met" 
s Lots of 
360 's hairdo 
4 Put away 
s South Dakota's 

•Very white 

7 Lambs: Lai. 

8 Experiment 

• Charles de 

io Bother 
it Purdue, e.g.: 


12 Evening, 
is Golfer's gadget 

21 Made a border 

22 Port-au-Prince's 


as Stared openly 

as Breathing 

ZT Get ready to be 
2 eOne-spota 
2 a Beatnik ' b drum 
so Paddles 
31 Enter, as 
computer data 
33 Got UP 
is Praises loudly 
38 Branch offehool 

as" wanna 

Do* (Sheryl 
Crow hit) 

3 « Monsters 
as Run out. as a 

44 igloo dweller 
4 a Half a weekend 
4 e Not abridged 

47 Procures 

48 Where fodder la 



tbyBMphul* SpadaocM 

© iVeir York Times/Edited by Will Shoriz. 

40 Monogram unit: Hi Meal on Maui 


so High schooler 
si ‘I'm youl* 

62 Voting district 

54 Mezz, 

58 Paths 
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PAGE 10 




A Bid to Modernise 

Continued from Page 1 

equipment at reasonable prices. 

“The key question, however, is how 
quickly new imports and investments 
will remedy the current defects of 
Chinese military forces,” be said. 

4 ‘For instance, having first class long- 
distance fighters or even an aircraft car- 
rier does not ensure dominance of the 
South China Sea unless logistics and 
command and control are adequate to fee 

task '* « 

As one of only five declared nuclear 
weapon stares, with an arsenal of8,OW 
tanl£ 5,700 fighters and bombas, 50 
submarines and55 destroyers and fiig- 
ates, 14 intercontinental ballistic mis- 

V. w 

-•'* .* 
I -r - - 

. v - 

rhiria looks impressive on paper for its 
military strength. 

But foreign experts say that much of 
the Chinese equipment is old and poorly 
maintained. . . 

“C hina is still onable to m ai nt ai n its 
military equipment adequately,” said 
Paul Dibb, a former senior official m 
Australia's defense and intelligence es- 
tablishment who heads the Strategic and 
Defense Studies Center at the Australian 
National University in Canberra. 

He said that despite improvement in 
some important areas, the effectiveness 
of the Chinese military remained limited 
by the widespread obsolescence of its 
weaponry and its reliance on outdated 
technologies derived from the former 
Soviet Union. 

4 ‘Practically all the equipment is 1 0 to 
20 years behind levels in the West and, if 
anything, the technological gap between 
rhina Mid the U.S. is widening,” Mr. 
Dibb said. “China is trying to remedy 
these deficiencies through selective pur- 

A.-' ^ * 


ISRAELI TROOPS KILLED — Hezbollah fighters nearlqlim aJ Tuffiah, southern Lebanon, over the weekend. 
Two Israeli soldiers on patrol near Tyre were killed Sunday by a roadside bomb set off by Hezbollah. 

VIETNAM: A Leadership Paralysed by Economic Malaise 

Continued from Page 1 

and fighters, as well as seeking to ac- 
quire airborne early warning and control 
aircraft and in-flight refueling capabil- 

Even more worrying for Chinese 
leaders is the wide gap they must close 
with the West and Japan if they are catch 
up in key areas of modem warfare. 

Mr. Jiang said Friday that the man- 
power cuts would free more resources 
for mili tary-related science and tech- 
nology so weapons and equipment 
could be upgraded. 

Mr. Dibb said that although China 
was likely to make progress in some 
areas, the United States was the estab- 
lished world leader in key technologies 
of modem warfare. 

“For the U.S. and its close allies, there 
will be enhanced confidence in being able 
to prevail militarily if challenged,” he 

“China's inability to catch up, or even 
nairow the gap, should serve to reinforce 
a sense of caution about military ad- 
venturism, although foreign powers will 
also have to be more careful about op- 
erating close to China's shores.” 

He added, "But they are not locked 
into the system they currently have.” 

A Western economist here agreed, 
saying the much-touted economic re- 
form policy, called doi moi, or renov- 
ation, started a decade ago, has finally 
.“run out of steam.” 

In reality, despite their name, Viet- 
nam's Communists already have jet- 
tisoned most of the ideological and rhe- 
torical baggage associated with 
doctrinaire Marxism-Leninism — 
pulling out the old phrases of fraternal 
brotherhood only for officials visiting 
from Cuba, for instance. Lenin’s statue 
still stands in a park here, but around him 
are all the trappings of the country’s 
rapid embrace of capitalist consumer- 
ism: new cars, motorcycles and scooters, 
fast-food restaurants and ice-cream par- 
lore, discos and karaoke bars. 

But on one crucial point the leaders 
cannot seem to let go of old ideas: the 
belief that the state, not the private sector, 
should control key sectors of industry. 
Vietnam has more than 6.000 state- 
owned enterprises, from steel mills to 
coal mines to salt makers. Most of those 
state firms operate with major losses, and 
many are technically bankrupt, kept 
afloat by huge government support 

The Vietnamese leaders have opted 
not to go for an all-out privatization 
campaign, as urged by international 
lenders and. others, but instead for a 

model of “state-led growth.” As an 
alternative, the government has es- 
poused a policy of " equalization” — 
reducing state assets in money-losing 
firms but not relinquishing control. Less 
than a dozen state firms have been 
“equitized,” however, since the plan 
was instituted four years ago. 

One area that dramatically illustrates 
the financial failings of the state sectoris 
die steel industry. Vietnam is overpro- 
ducing costly steel — even though im- 
ported steel from Russia is far cheaper 
— leaving huge, unused stockpiles. One 
firm, Vietnam Steel Carp., was reported 
in the local press to have lost $1.2 mil- 
lion in the first six months of this year. 
But catting back steel production would 
mean huge layoffs and the possibility of 
social instability. 

There are other problems. The' legal 
system is in its infancy — signed con- 
tracts rarely can be enforced. Corruption 
is rampant. Copyright violations and 
trademark infringements are common- 
place, and they often involve state 
companies. Basic infrastructure is still 
rudimentary, not only in terms of roads 
and bridges, but also in the agricultural 
sector where fanners still dry grain on 
plastic sheets on the edge of highways. 

The problems, and the government’s 
seeming inaction, have led to a sharp 
decline in foreign investment, partic- 
ularly among American firms that 
rushed here after President Bill Clinton 
normalized diplomatic relations with the 

former U.S. enemy in 1995. By the end 
of 1996, the United States had jumped 

of 1996, the United States had jumped 
from virtually zero commercial involve- 
ment to become Vietnam's sixth-largest 
investor. Now the United States has 
slipped to the bottom of the top 10. 

One of the few official mantras stiQ 
largely intact in Vietnam is the firm belief 
in leadership by consensus. In practice, 
that has meant maintaining a delicate hal- 
ance among the various, often competing 
forces and institutions that compose the 
ruling elite: the army, the security forces 
of the Internal Affairs Ministry, the Com- 
munist Party with its extensive apparatus 
and the myriad government ministries. 

This method served Vietnam well 
during its long period of war against the 
French and then against the Americans 
and their South Vietnamese allies. Butin 
today’s open and complex economy, the 
search for consensus at the top too often 
has meant policy gridlock. 

National Assembly elections in July, 
however, were seen as a sign that the 
government is willing to tolerate more 

competition, if not outright democracy, 
in a limited political life. Independent 
candidates not aligned with the Com- 
munist Party were allowed to run — 
albeit after being approved by the party 
— and 61 legislators in the new 450-seat 
assembly wul be nonparty members. 

Another sign, diplomats said, was the 
surprise decision this month to free from 
prison one of the country’s most prom- 
inent dissidents, Pham Due Kham. 

BOSNIA: A Show of Force for Elections 

Continued from Page 1 

o rustic enclaves or to release the grip on 
power by nationalist hard-liners. 

[With only three hours of polling to 
go, the Organization for Security and 
Cooperation in Europe said turnout had 
been very high despite the efforts of 
hard-line nationalists to undermine it, 
Reuters reported 

[“Nationalists beyond democratic 
forces, the war criminals, they all resisted 
this process,” said David Foley, an 
OSCE spokesman. “They tried to block 
these elections, they tried to boycott 
these elections, they tried to disrupt these 
elections. But the voice of the people will 
be heard. To those who say there is no 
progress in Bosnia, to those who say that 
ethnic divisions are as deep as ever, today 
the people of Bosnia have given their 
answer. They say: "Think again.' ”] 

Critics of the vote said sanctions will 
probably not be enough to force na- 
tionalist leaders to abide by the results, 
especially since many have amassed 
great wealth in their positions. 

vote for 136 municipal councils across 
the country. The United Nations said 
about 35,000 people were expected to 
cross the line between the Serbian and 
Muslim-Croat halves of Bosnia to vote. 

■ Groats Delay Vote in Drvar 

Diplomats accused Croatian nation- 
alist authorities in the western town of 
Drvar of trying to stall voting in an 
attempt to avoid defeat by Serbian 
refugees who once controlled the town 
and came back to vote, Reuters reported 

Hundreds of Serbs spent the night in 
buses and cars outside the town because 
the Croatian authorities running polling 
stations had adopted a "go slow” ap- 
proach, the office of the international 
High Representative to Bosnia said. 

"The behavior of Croat authorities in 

Drvar is absolutely unacceptable, be- 
cause they are intentionally slowing 

cause they are intentionally slowing 
down the election process and the Serbs 
voting,” said Vladislav Savic, spokes- 
man for the High Representative. 


>£. ; 

MWl StUWH™irr» 

Two Serbian refugees as they were reunited in Croatian-held Drvar. 

The Dayton peace agreement, the crit- A _ a T A ■ • x, f /» .■ n i 

» said, rather than fostering a process to LIA! Agency is Again Stressing Its Information- iratnenng Hole 

iwr. Rnsnia toward democratic: mlc LJ */ Cs CD «/ D 

ics said, rather than fostering a process to 
move Bosnia toward democratic rule 
and a multiethnic society, has resulted in 
a series of NATO-managed events that 
have failed to alter the dismal political 

"What we will most likely end up 
with are a number of govemmems-in- 
exile, ’ ’ said a Western diplomat. 1 “These 
elected officials will not even be able to 
visit the towns they are supposed to 
administer. Power will remain in the 
hands of those who have always had 
little regard for the peace agreement or 
the democratic process.” 

The 34,000-member NATO-led 
.peacekeeping force sent out heavily 
aimed patrols, stationed troops in ar- 
mored personnel earners at polling 
places and crossroads and had helicopters 
buzzing over much of the country. 

The deep divide among the three eth- 
nic communities was in evidence as they 
wrangled ova the voting. 

The Bosnian Croats refused, for ex- 
ample, to permit polls to open in the 
center of Zepce and Tesanj, which once 
had Muslim majorities, in Sarajevo, 
where the majority Muslim population 
hopes to see a common administration 
for Bosnia, a powerful bomb blew the 
front off the Croatian party headquarters 
Friday night. 

And in Mostar, Muslims at first boy- 
cotted the vote after international of- 
ficials agreed with the Croats not to hold 
voting in the important central district of 
the divided city. A Muslim official was 
reported to have said lata that they had 
worked out an arrangement with the 
Croats and would take pan. 

The Muslims should gain ihe most 
from the elections, at least on paper. The 
balloting is expected to hand the main 
Muslim party nominal control of many 
towns where Muslims were expelled by 
Serbs and Croats during the war. 

About 2.5 million citizens, including 
400,000 outside Bosnia, registered to 

Continued from Page 1 

Mr. Tenet, who spent much of his last 
few years as the No. 2 man at the agency 
studying coven operations, has mandated 
that intelligence collection and not coven 
action will be the principal requirement 
for the Directorate of Operations, the 
clandestine side of the agency. 

In naming Jack Downing, a highly 
regarded officer of the directorate to take 
over the embattled office, Mr. Tenet said 
thai he was turning to “a world 
renowned operator” who can “nin qual- 
ity operations that generate unique in- 

As the CIA approaches the 50th an- 
niversary of its creation this week, the 
new approach marks an important shift 
in emphasis away from the type of secret 
activities that made the agency both fa- 
mous and infamous. 

“Coven activities involving exile 

groups or aiming guerrilla fighters take a 
lot of time and attention and divert re- 
sources from developing a base of agents 
who could be gathering intelligence on 
our hardest targets," an official said. 

Often, he added, the exiles in tra- 
ditional covert activities "can’t be con- 

forces that committed human rights vi- 

Agents recruited for intelligence gath- 
ering rather than paramilitary operations 
are "more disciplined,” the official 
said, "and are not the same kind of 

trolled, people get locked intopolitical 
positions and often the payoff is nee- 

people as exiles." 
"They relentless 

positions and often the payoff is neg- 
ligible or can’t be measured at all.” 

The agency has been sharply crit- 
icized for its operations against the Iraqi 
leader, Saddam Hussein, by exiles and 
forma agency operatives disappointed 
by the way things turned out. 

In addition, new CIA and Justice De- 
partment investigations of agency op- 
erations in Central America are exported 
to be made public shortly. 

These seem certain to provoke more 
criticism of the agency's cooperation 
with drug dealers who aided Nicaraguan 
contra operations and trained Honduran 

Mail Carrier Fired for Short-Stepping 

The AsstKioied Press 

WHITE PLAINS, New York -- A 
woman who has been delivering mail 
for 1 8 years has been fired because her 
stride is too shore. 

According to ha dismissal lota 
from the U.S. Postal Service, Martha 
Cheny, 49, was observed walking on 
ha route at the rate of 66 paces a minute 
with a stride of less than one foot (30 
centimeters 1. Ms. Cherry isjust under 5 
feet 5 inches (1.65 mctcrsi talL 

“At each step, the heel of your 
leading foot did not pass the toe of the 
trailing foot by more than one inch.” 
the letter said. "As a result, you 
required 13 minutes longer than 
your demonstrated ability to deliver 

mail to this section of your route.” 

Ms. Cherry, who said she was 
"devastated" by the decision, filed a 
grievance with the letter carriers' un- 
ion after receiving the dismissal letter 
last month. 

Pat McGovern, a spokeswoman for 
the Postal Service, said Ms. Cheny 
had been warned once and suspended 
twice for similar problems. 

But people along Ms. Cheny 's route 
in White Plains have written dozens of 
letters in her support. One, signed by 
more than 40 residents, says: "If walk- 
ing quickly is more important than 
kind, sensitive service to cusjomas. 
then something is seriously amiss with 
the post office's priorities." 

"They relentlessly gather intelligence 
on which we can act,” he said, "giving 
us the option of using some new 

The intelligence committee chairman, 
Mr. Goss, noted that in the 1960s, the 
Central Intelligence Agency’s covert ac- 
tion included trying clandestinely to af- 
fect election outcomes and influence 
political and labor leaders, without di- 
vulging U.S. involvement. 

There are still traditional, smaller- 
scale covert operations under way 
against Iran and Iraq that include slip- 
ping propaganda into local newspapers 
or a country's television network, leaf- 
let ing and beaming in radio broadcasts 
from mobile transmitters and supporting 

Some are under way because mem- 
bers of Congress want something done 
against such anti-American countries. 

One CIA official noted that the House 
speaker, Newt Gingrich, Republican of 
Georgia, has made well-publicized de- 
mands for stronger steps to undermine 
the Iranian government. 

"Covert action is not a miracle work- 
er.” he added. 

The official was particularly critical 
of exiles from Afghanistan. Iran and Iraq 
who lobbied Congress to gain support 
for their exile groups and efforts to re- 
gain power, among them Libyans and 
Ukrainians. . 

"These never went anywhere.” he 
said. "Exiles in $600 Hickey Freeman 
suits work Capitol Hill. We were look- 
ing to give money to guys in the field 
who do the shooting.” 

A Mood of Optimism 

Takes Hold in Ulster * 


For First Time, All Parties to the Conflict 
Are Eligible to Participate inPeqce Talks 

By Dan Balz 

Washington Post Service 

LONDON — George Mitchell, chair- 

generation of sectarian conflict in North- 
ern Ireland — and a person who is rarely 
careless with his choice of words — says 
he is “more hopeful thanl've been at any 
tim e in the past two and a half years.’ 

On Monday afternoon, the peace talks 
will open formally in Belfast and, for the 
first time, all parties to the conflict will 
be eligible, to participate. 

Mr. Mitchell said by telephone from 
the United Stales before shattling once 
again back to Northern Ireland: “I don’t 
want to sound unrealistic or naive. There 
are tremendous difficulties ahead. But 

it’s clear the people of Northon Ireland 

want this resolvwi.” 

Major problems cloud the opening of 
the talks, and yet there is a guarded sense 
of optimism that conditions now may 
exist to push the talks forward — even rf 

For three decades, the people of North- 
ern Ireland — the Protestant majority and 
the Roman Catholic minority — have 
fought a civil war that has taken more than 
3,000 lives, many of them civilians. 

Now Prime Minister Tony Blair of 
Britain, working closely with Prime 
Minister Bertie Ahem of Ireland, has 
established a timetable designed to pro- 
duce a peaceful resolution that has 
eluded the parties for so long. 

Mr. Blair's schedule is seen as overly 
optimistic — he said he wanted talks to 
begin in September and to conclude in 
May. But tile push he has given to the 
negotiations isjust one of the factors that 
have dome together to create movement 
in the long-stalemated process that has 
given rise to Mr. Mitchell's sense of 

David 'frimble, Jeader of the Ulster 
Unionist Party, said Saturday that it 
would decide Monday morning what 
role, if any, it would play. 

But he hinted that the party, whose 
participation is critical, would be in- 
volved in some way, even if it engaged m 
what -are called “proximity talks,” 
mining they would be in the same 
building but not in the same room with 
representatives of Sinn Fein. 

The second question marie involves 
Sinn Fein and the IRA. Last week, die 
S inn Fein president, Gary Adams, en- 
dorsed a series of principles set out earli- 
er by Mr: Mitchell as conditions for 
participation in the talks. 

- M ■ (* . jL - A MMHKMQllAn rtf 

There are 10 parties and two gov- 
ernments involved in the talks. A ma- 
jority cm each side of fee table must agree 
before there can be any resolution, which 
makes the process cumbersome at best. 

Two big question marks hang over 
Monday's opening. The first is whether 
fee largest of fee Unionist parties, which 
generally speak for fee Protestant ma- 
jority, will be at fee table. 

The Unionists are wary of entering 
into face-to-face talks with represen- 
tatives of Sinn Fein, the political arm of 
the outlawed Irish Republican Army, but 
they are under enormous pressure not to 
abandon the talks entirely at this delicate 

violence and a commitment to resolving 
fee long conflict by democratic means. 

But two days later, an official of the 
IRA expressed reservations over , fee 
Mitchell principles and raid the IRA did 
not feel bound by them. 

The IRA’s declaration last Thursday 
has only hardened fee resistance of fee 
Unionist parties, several of which’ 
already have announced they will not 
participate in the talks when they open 
Monday. - - 

Mr. Blair tried to reassure them over 
fee weekend. "I will not stand for any 
attempt to use violence, or fee fereat of 
violence, to influence the talks process or 
fee outcome of the negotiations,’ ’ he said 
in an article in a Unionist publication. 

But he also restated hia determination 
to move the fanes forward. “The set- 
tlement train is leaving next week,- in an 
environment now free of violence,’ ’ hie 
wrote. “I hope everyone will be on it” 
Sinn Fein was invited to the talks only 
afta the IRA declared a cease-fire in July 
that British government officials have 
said now they believe to be genuine. 

But it was the second truce announced 

by fee paramilitary organization; fee 
first lasted only 18 months, and fee Un- 
ionist parties doubt the sincerity of this 
latest one. . "? 

The Unionists prefer to see die IRA 
begin to surrender some of its arsenal 
before talks begin, a course that has been, 
rejected by Sinn Fein. 

The issue of. weapons “decommis- 
sioning” will be handled in separate tea 
parallel talks. i J 

As Mr. Mitchell has said repeatedly, 
feeze has been a cease-fire with no ne- 
gotiations, and negotiations .wife no 
cease-fire. Monday will mark the first 
time there will be talks andacease-fire at 
fee same time. 

Albright Blazes a Trail 

Saudis Give Her a Publicised VIP Welcome 

By Thomas W. Lippman 

Washington Post Service 

ABHA, Saudi Arabia — Wheat Ros- 
aiynn Cana arrived in Saudi Arabia as 
first Lady in 1978, she walked behind 
President Jimmy Carter and the wel- 
coming party. 

She was excluded from all official 
meetings and she dined separately wife 
Saudi women . 

When Madeleine Albright arrived in 
this country on a mission as secretary of 
state, she got — well, she got the royal 

Prominent princes met ha at the air- 
port. King Fand and Crown Prince Ab- 
dullah received ha and all Saudi news- 
papers gave front-page display to photos 
of her wife ha Saudi hosts. 

The difference is partly time but 
mostly it is status. 

In the two decades since the Cartas 
were here, Saudi Arabia has accom- 
modated itself in many ways to the fact 
feat foreign countries and some busi- 
nesses wih be represented by women. 

The U.S. Consulate in Jidda, for ex- 
ample, has more female diplomats than 
male, officials said. Like Saudi women, 
they cannot drive and are barred from 
all-male social gatherings, but otherwise 
they are free to do their jobs. 

When Mrs. Albright came to this cap- 
ital of Saudi Arabia’s mountainous 
southwestern province to meet with for- 
eign ministers of the Gulf Cooperation 
Council countries, ha entourage was 
met by several women from the U.S. 
Embassy in Riyadh and the consulate. 

In Rosalynn Carter’s day, the Stale 
Department had to import women dip- 
lomats from neighboring countries to 
handle the program for her. 

Some newer public buildings now even 
have restrooms for women, a novelty in a 
coumiy where women are uol expected to 
be woriring with men. But the big dif- 
ference for Mrs. Albright was that she 
came here in her official capacity. 

As is their long-standing practice, fee 
Saudis dealt wife the position, nor the 
person filling it — just as they did with 
Henry Kissinger when he was secretary 
of stare, even though Jews are normally 
not welcome here. 

It was that same principle of Saudi 
protocol feat excluded Rosalynn Carter. 
During that visit. King Fahd, then crown 
prince, gave an interview to Barbara 
Waiters of ABC News, who was here in 
ha professional role. Mrs. Carter was 
here only as Mrs. Carta. 

“The Saudis understand that other 
countries do things diffferently,” a fe- 
male U.S. diplomat said. "They just 
don’t want us to interfere with the way 
they run their own society.” 

In a gesture to Saudi sensibilities 
Mrs. Albright wore a black suit with 
long sleeves and a long skirt, and a 
broad-brimmed straw hat. She said it 
was her "Aspen hat,” bought in the 

Colorado ski resort town frequented fry 
Prince Bandar bin Sultan, the ambas- 
sadorto fee United States. i: 

Prince Bandar was in the welcoming 
party, along wife fee foreign minister, 
Prince Saud al FaisaL Eva since Mrs. 
Albright was appointed, the Saudi am- 
bassador has scoffed at fee idea feat she 
would face difficulty here as a woman, 
jokingly dismissing it as “sexist” 

King Fahd received Mrs. Albright . 
wife fee full ceremony accorded to the \m- 

mnet HictinonichpH vieitm* " 





most distinguished visitors. 


Praise for Albright 

Continued front Page 1 

overcame the impression of a dangerous 
stalemate, the Saudis told ha. 

i Meeting Tied to Peace Progress 

— v 

Gulf Arab states demanded a revival 
of the peace process in ratify Sunday wife 
Mrs. Ai bright as a condition for attending 
an economic summit with Israel, Agence 
France- Pres se reported from Abha, 
Saudi Arabia, quoting a Gulf official. M 

For ha part, Mrs. Albright urged the W' 
wealthy Gulf Arabs to drop opposition to 
taking part in the three-day Doha eco- 
nomic summit starrin g Nov. 16. 

"Arab states have a responsibility to 
support the peace process and work 
against fee enemies of peace,” she said 
at a meeting of foreign ministers of the 
six-nation Gulf Cooperation Council 

Washington hopes, she said, that 
members of the council will participate 
“to send a message to the opponents of 

She also called for fee six states ‘To 
do your utmost to ensure that no as- 
sistance of any kind reaches the prac- 
titioners of extremist violence such as 
Hamas, the Palestinian extremists who 
cany out smade bombings in Israel. 

The Saudi foreign minister. Prince 
Saud .Faisal .voiced fee cooperation ^ 
council s backing for the peacerfforts 
encouraging factors” in her 
first tour of the Middle East. 

ca * led for 1110116 efforts “to put 
the peace process back on track. ’ ’ ^ 

^' n and fee United Arab 

m Su ha = e said * e y would boycott 
fee Middle East and North Africa eco- 

K?Ti. t0 Israel’s hard 
line in fee deadlocked peace process 

A ,?V l fe® Saudi leadership told Mrs 
Albnglu that they might lift their boycott 

official sSS m ° n,hS ' 2 se "k^ 

The kingdom is “leaving the dnor 
open/’ the official said, asking SSL 

r? . official said the council’s for- 
go ministers adopted the Saudi line. 

I m-. 



. ; 



PAGE li 



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■ tX 

.• .1 •*•<?• 


V 1 

\ 4 

.. « : 





,„ 8ir — « - — - - - li,era " , 

Natural gas. Electricity- Endless possibilities. 



PAGE 12 



A New Consensus Forms: U.S. Rates Will Rise, but Not Until November 

producer prices rose 0.3 percent in Au- sales had come in significanUy an economi? at 

Just and that retail sales had expanded market expectations and the producer in Lexington, Mas- 

By Mitchell Martin 

(iMriM/wiMl Herald Tribune 

NEW YORK — There is a diver- m % ng A 2 

gence of opinion on Wall Street about As its F|ee * ^?5o- year Treas^ 

the outlook for bond prices but a grow- the ^?,°{? , nenrent Friday 

ing consensus that the Federal Reserve uiy bond fell to 6.61 percent Fnaay 

Board will push short-term interest rates - __ e rnc , nrr M i okT7T« 

higher after its policy-setting arm meets ll.b. CKEVll W Almhla 

disagree ab ou, ho. quickly ftoiu 


igniting inflation. but recent dat P° nervousness about corporate earn- 

cust ana mat reum uuu — - . t— — — - — * . . f nr *_ nRT/McUT 

bv 0.4 pereent, the bond market rallied, pnces mcrease was in line ?w rh fore 

Sdn« sTocks along. . casts. But m a game that is mcreasindy sachusetts. 

“Vi* price rose 27/32, to 96 29/32, common on Wall Street, investors eurij- C® P” 

Uie yield on the current 30-year Trras- erin ihe week began to SSiim 

i * n A Ml m 1 percent Friday selves for results that did not maten commit _ 


analysts’ forecasts. 

In this case, themarket priced in more 
inflationary data than the consensus es- 

rates- we do see the economy too high,' * according to Salomon Brothers Inc., far 
said Cynthia Lana, an economic at more than Americans purchased over- 
DRl/McGraw-Hill in Lexington, Mas- seas in that period, 
sachnseits. Ms. Latasaid the strong U.$. ec° c ' 

DRI predicted ibe central bank's oury was attracting overseas investors 
policy-setting Federal Open Market and dial this would limit the upward 
Committee would push die federal funds pressure on interest rates exerted by the 
rate the fee charged on overnight loans relatively rapid GDP expansion, 
between commercial banks, to 5.75 per- That kind of thinking is countenn- 

cent from 5.50 percent. The committee niitive for many bond investors, who 


paid down $7 1 .5 billion of debt ^ 

tp die gross domestic product expanding 
at an annual rare in excess of 3 percent in 
tfje third quarter, fast enough, in the view 
of many, for the central bank to seek ro 
Cool things down with a rate increase. 

1 This was not apparent from the mar- 
ket’s reaction to the latest economic 
data Friday. After the government said 

terest rates falling, stock investors over- 
came nervousness about corporate earn- 
ings that had weighed ou the market for 
a few sessions, and the Dow Jones in- 
dustrial average rose 81.99 points, to 

7,742.97. . . 

Several analysts called the rise in 
bond prices Friday a relief rally, 
triggered because the growth in retail 

terest rates roughly to where they were a 
week earlier. 

This begs the question of whether the 
economy is really growing too fast for the 
Fed's comfort and, if it is, whether that 
growth is bad for long-term bond prices* 

TTie answer ro the first question 
seems largely to be yes. 

“We still see the Fed hiking interest 

erung say toe move will wan unui me 
November meeting, six weeks later. 

Ms. Lana took the middle ground be- 
tween bond bulls and bears, suggesting 
that investors would do best to focus on 
purchasing short-term instruments with 
maturities of no more than two years. 

DRI is predicting that the 30-year bond 
yield will end the yearar 6.74 percent and 
the two-year Treasury note at 6.13 per- . 
cent, up from Friday’s 5.93 percent 

Although DRI sees strong economic 
growth, it makes several bullish argu- 
ments for fixed-income securities. 

One key is strong overseas demand 
for U.S. securities. Foreign private in- 
vestors bought more than SICK? billion 
of U.S. securities in the second quarter. 

Most Active International Bonds 

The 250 most active intemaiionaJ bonds traded 
through the Eurodear system far Che week end- 
ing Sept. 12. Phces seppted by Talekurs. 

Cpn Maturity Price YWd Rnk Nam Cpn Maturity Price Yield 

cpn Maturity Price YWd 

Argentine Peso 

210 Argentine Bac 13528 040107 105.6674 3.1700 

Austrian Schilling 

213 Austria 5ft 07/1507 99.4000 5x600 

Australian Dollar 

233 Fannit Mao Ski 09/05700 100.7500 5.7100 

73 Treuhand 

76 Germany 

77 Germany 

78 Germany 

87 Germany 

S3 Germany 

89 Germany 

90 Treuhand 

92 Germany 

93 Germany 

95 Germany 

96 Treuhand 
101 Germany 
103 Germany 
106 Germany 
108 Germany 
114 Germany 

6ft 061103 108.7500 6.3200 
6U 07/15/04 108.3250 64300 
7'i 12/20/02 109.7663 64900 
5% 08/22/00 1 034100 54400 
2 pro 07/04/27 14.3500 6,7200 
64* 05/2Q/98 1Q2JMO0 6.2500 
6*g 12/02/93 103.7500 6.6300 
6 11/12/03 104.4433 5.7400 

8ft 08/21/00 111.2443 7.6400 

6 06/20/16 98.2557 6.1100 

7 01/13/00 1063300 6-5800 
6ft 03/26/98 101.4600 6.0400 
Stt 05/2101 110.3110 74900 
54* 02/22/99 102.3100 5-2500 
65* 0100/90 99.0307 641900 
jU (S/20/98 1 02.0200 541400 
0*4 05/22/00 111.2250 7.8700 
5ft 10/20/98 101.7600 5.1600 

229 Anj Global 
248 Hellenic 

1.120011/12/98 99.8350 1.1200 
3490000803/17 99-2500 3.8300 

Portuguese Escudo 

135 Portugal FRN zero 10/01/97 100-0300 0.0000 

" T’ra not one of those bond guys who 
can't wait fora recession, ’• said Charles 
Earle, fixed-income strategist at Gruntal 
& Co. Mr. Earle can’t wait to buy bonds. 
He predicted the yield on the 30-year 
issue would fall to 6.25 percent in the 
coming months and to 6 percent in the 
first half of next year. 

Like Ms. Lana, Mr. Earle said the 
U.S. economy was pulling in capital. 
Looking around the world, he said 
America was one of the few places 
where relatively high rates of return 
were available in a stable environment. 

At the same time that Internationa] 
demand is rising, moreover, the supply of 
Treasury bonds is contracting. The gov- 

in the first half of this year, he said. 

Mr. Earle said the retail-sales data 
Friday supported his long-term bullish 
view. But an entirely different reading 
was provided by Ken Mayland, chief 
economist of KeyCorp, a Cleveland- 
based banking company. 

Mr. Mayland said that although the 
August sales rise was below expecta- 
tions, a revision in the July increase— it 
was raised to 0.9 percent from 0.6 per- 

cen i indicated the kind of consumer 

spending that would put upward pres- 
sure on prices. He alsonoted that the rise 
in the producer price index for August 
was the first this year. 

Department-store sales in August 
were sharply higher than a year earlier, 
he said, and because of (he low inflation 
over the previous year, practically all of 
that rise reflected increased unit sales, a 

'# :i ‘ 

nulling in capital, sign that consumers were shopping with 
e world, he said new fervor. He also predicted the Au- 

gust retail sales data would be revised 
upward, following the recent pattern for 
this indicator. . . 

Mr. Mayland said he thought this 
would encourage the Fed to raise in- 
terest rates starting in November. 

South African Rand 

zero 12/31/32 

lft 11.9100 

Spanish Peseta 

Moving Targets Confuse Investors 

1 16 Germany Tbills zero 01/16/98 98.9450 3.0700 

Canadian Dollar 

192 Canada SP 
196 Canada 
249 Canada Tbill 

zero 06/01/25 158351 6.8700 
7'i 04/01,07 1088750 6.6*00 
zero 0 tatM *7.6600 52000 

123 Treuhand 
130 Germany 

132 Treuhand 

133 Germany 
137 Treuhand 
142 Germany SP 

7 12/22/97 100.9800 6.9300 

6U 0304/04 1 05.4246 5.9300 
6 02/20/98 101.1100 5.9300 
5 01/14/99 101.6400 4.9200 
6ft 08/14/98 1025300 62200 
5 12/17/98 10? -5900 4.9200 

zero 01/04/24 1B.0700 6.7100 

118 Spain 
173 Spain 
195 Spain 
197 Spain 
231 Spain 

8^00004/3006 117-8500 7-4700 
7.9000 02/28/02 109.4480 7220Q 
6 V 04/15/00 103.9060 63000 
7.8000 10/31/99 1054300 74000 
7.3500 0 3/3107 1 08.1 730 6.7900 

By Carl Gewirtz 

httemarionai Herald Tribune 

Swedish Krona 

British Pound 

143 Denmark FRN 3.139009/10/01 99.9100 3.1400 

162 Treuhand 

6ft 06/25/98 102.0400 6.0000 

104 Sweden 
157 Sweden 1036 

182 Sweden 

183 Sweden 1037 

11 01/21/99 107.8200 10X000 
TOW 05/05/00 111.7220 9.T7D0 
9 04/20/09 110.2510 7-6100 

B 08/15/07 170.1630 72600 

128 Fln.For Re* 
141 Notwesl 
188 Abaev Nation 
187 Fannie Mae 
242 Britain 

7 11,040? 100.0000 7.0000 

8.369009.-30/50 136.2500 6.0500 
7’i 090915 9941250 7.9000 
6 08/1 0/99 97.6250 6.1500 

6.430003/22/01 96-6092 6.6600 

166 Cap Credit Card 5ft oa/15/Ql 102.6689 5.4800 

06/07412 1002160 6.9800 

Danish Krone 

12 Denmark 

13 Denmark 
24 Denmark 
28 Denmark 
35 Denmark 

43 Denmark 

44 Denmark 
46 Denmark 
58 Denmark 
42 Denmark 
63 Denmark 

T07 Denmark 
U7 Nykiedir 
164 Denmark 
225 Nykredit 3 Cs 
235 Denmark 

JI/1S07 105J600 6.6300 
03/15/06 112.6700 7.1000 
11/1 S/00 111.9100 8.0400 
11/15/98 105/2500 8-5500 
12-15/04 1 06X100 6-5500 
11/15/01 110.7300 72200 
05/15/03 112.1800 7.1300 
121099 102.9300 5.8300 
111074 100X100 6.9400 
02/15,99 102.3800 5X600 
11/1502 1 03.3100 5X100 
02/15/00 90.9000 4.0400 
10.01/29 96.1800 72800 
02/1 5/98 1012700 6.5100 
10/01(26 91 .4000 6X600 
081505 95.9300 5X100 

167 Germany 5>m 02/25/98 1002400 52100 

172 LB Sachsen 5fc 09/10/07 99.8850 5.7600 

174 Treuhand 7 11/2&/99 104.1 B35 6X900 

186 llaly 5V 07/1 Q/07 99.4800 5.7800 

189 Treuhand 5ft 09/24/98 102.0500 5X100 

■193Fretetaa1es 6 10/30/06 102-1500 5.0700 

200 Germany 5W 05/28/99 103X700 5X800 

204 LB Berlin FRN zero 08/25/05 97X5 09 0.0000 

206 Germany 6ft 02/20/98 101X300 6.1700 

211 Belgium zero 10/22/97 99.6443 3.0000 

21 5 Germany 6ft 06/21/99 104X102 6.4400 

217Treuhand 6>i 07/29/99 104.1400 6.0000 

224 Germany 7ft 12(20/99 1064850 6.6900 

226 German Slates 6 01/29/07 102.0000 5.8800 

233 TV A 6ft 09/18/06 104,4500 '6.1000 

243 Germany 8ft 07/20/00111X800 7.8300 

244 Germany FRN 2.870709/30/04 992100 2X900 
246 Deu! Ausqleictw 6ft 05/29/06 105X000 4.1600 

U.S. Dollar 

5 BRUil Cap S.L 4ft 0*1/1 5/1 4 93.8118 4X000 

6 Argentina par L 5ft 03/31/23 74X104 7X800 

15 Mexico lift 05/15/26 118X856 9.7000 

10 Venezuela par A 6fc 0*11/20 84X828 7.9800 

23 Brazil L FRN 
29 Brazil 
39 Mexico 
42 Argentina 
50 Argentina 
52 Brazil par Zl 

6 ft 04/15/06 91.7235 7X000 
10 ft OS.nS/27 97.8241 10X500 
6 ft 12/31/19 80X965 7.7600 
6*1 03/29/05 92X643 7X900 
lift 01/30/17 117X538 9X800 
5ft 04/15/24 70.1250 7X900 

54 Venezuela FRN 6ft 12/18/07 94.6700 7.1300 
70 Venezuela par B 6ft 03/31/20 84.4838 7.9900 

250 Deufs Sled 

5ft 11/2Q/97 100X500 5X300 
54« 08/13/07 98X369 5.7000 

70 Venezuela par t 
75 Brazil S3 FRN 

79 Mexico 

80 Mexico 

81 Russ Fed 

6ft 04/15/24 86.0600 7.9900 
6ft 12/31/19 80X679 7.7500 
9ft 01/15/07 105X750 9X300 
10 06/2*07 102X1 IT 9.6900 

Dutch Guilder 

Deutsche Mark 

•1 Germany 
■2 Germany 
•3 Germany 
4 Germany 

7 Germany 

8 Germany 

9 Germany 

10 Treuhand 
■91 Germany 
U Treuhana 

16 Germany 

17 Bundesabligotion 

18 Germany 

20 Treuhand 

21 Germany 94 

22 Germany 

25 Germany 

26 Germany 

27 Germany 
■30 Treuhand 

31 Germany 

32 Germany 

33 Germany 

36 Treuhand 

37 Germany 

38 Germany 
40 Germany 
■41 Germany 

■ 45 Treuhand 
■47 Germany 

48 Germany 

49 Germany 
5? Germany 

55 Germany 

56 Germany 

57 Germany 

59 Germany 

60 Germany 

61 Germany 
64 Germany 

66 Treuhand 

67 Germany 

68 Treuhand 

71 Germany 

72 Germany 

6 07/04/07 102X822 5.8600 
6 01*04/07 102X500 5X600 
0 07X202 113X089 7.0700 
3ft 06/18/99 99X200 3X200 
0 01/21*02 112.45 7.1100 

eft 0*1 '26/06 104X945 5.9800 
aft 07/04/27 102X900 6X500 
7 1 7 09.09,04 112.4150 6X700 
4ft 0517.02 99X500 4X300 
7ft 10,01.-02 1 12.3450 6.9000 
6 ft 05,12/05 106.9356 6X300 
4ft 02/22/02 99.1178 4X400 
8 ft 1014/05 103X679 6X700 
7ft 1 202*02 108.7371 6.7800 
4ft 01/04/24 99.1300 6X000 
7ft 01/03/05 109X902 6J500 
3* 0319/99 99.9700 3-7500 

5 05/21/01 101X700 4.9200 
0ft 09/20,01 112X880 7X100 
7ft 01/2903 109X000 6.4900 
Bft 08/7 0,01 114X300 7X500 

6 01,0504 103.0700 5X200 

3ft 091 8/98 99.9400 3X000 
7ft 10/21/02 110X034 6X800 
6ft 07/09/03 107X200 6.1600 
4ft 11/2001 100X800 4.7400 

5 08/2001 101X400 4.9400 

9 10/2000 110X337 8.1600 

Sft 120000 113.1775 7X400 
6ft 04/2303 106.9600 6.0800 
b 021606 100X965 5.9600 

6 091 503 104X200 5.7200 
5ft 11/2100 102.1375 5.0200 

9 01/22/01 113.7633 7.9100 
6ft 03/1500 105.4614 6.1600 
6ft 071503 107.0400 6X700 
6ft 091 5/99 105X000 6X000 
5"s 051 500 104.1000 5.6400 
3ft 1218*98 99.6200 3X100 
6ft 04/2203 108X150 6X400 
7ft 111104 112.6300 6X600 
6ft 070109 102.1034 6X400 
6’« 05/2009 103X700 5.9100 
6*1 051304 108X050 6X400 
8'.* 02,2001 112X5 7X600 

5ft 02/21.01 102X267 5.1300 

53 Netherlands 
65 Netherlands 
69 Netherlands 
74 Netherlands 
84 Netherlands 
86 Netherlands 

98 Netherlands 

99 Netherlands 
102 Netherlands 
110 Netherlands 
115 Netherlands 
117 Netherlands 
122 Netherlands 
125 Netherlands 
149 Netherlands 
151 Netherlands 
154 Netherlands 
159 Netherlands 
161 Netherlands 
163 Netherlands 
165 Netherlands 

169 Netherlands 

170 Netherlands 
1 B0 Netherlands 
190 Netherlands 
194 Netherlands 

5ft 021 507 101.0000 S.6900 
7ft 01/15/23 11517 64900 

5ft 091502 1017200 5X400 
6W 071508102.0400 6.1300 
8W 061502 714ft 7X200 

9 011501 113X500 7.9300 
7 06/15/05 109X500 6.3700 
7ft 061509 105.7500 7.0900 
6ft B7ZIS/9B 102X200 6X600 

6 011506 103.3200 5X100 

8ft 031501 112X5 7X600 

7ft 041510 115 6X200 

5ft 0115/04 103.0000 5X800 

7 02/15/03 109.3400 64000 
8ft 040106 120.2000 7.0700 

9 051500 111.6500 8.0600 
6ft 041503 107.0200 6X700 
6ft 021509 103.7500 6X100 
8ft 091507119X500 6.9000 
7ft 030105 114X300 6.7700 
6ft 1115/05 108X500 6X400 
7 031509 104X000 6.7100 
8ft 021500 109.0000 7X700 
6ft 100108 103.0000 6X500 
7ft 011500 107.7000 7X000 
8ft 021502 113X500 72600 

6X500091 00 2 99.3750 6X900 
2»i 02/28/25 510000 6X000 

6>Vtt 07/2811 78.9743 8X700 
6/1 09/27/23 973105 7.0700 

82 Brazil S.L FRN 6>ft. 041 51 2 83X500 8X500 

83 Brazil FRN 6ft* 01 / 01/01 99.1438 63700 

85 Argentina FRN 6ft 03/31/23 90.7136 7X800 

91 Ford 6X500091002 99.3750 6X900 

94 Ecuador par 3ft 02/28/25 510000 6X000 

97 Bulgaria FRN 6"/w 07/281 1 78.9743 8X700 

TOOftaly 6ft 09/27/23 973105 7.0700 

109 Brazil S.L FRN Attft 041509 88.0000 7X800 

111 Mexico 1)K 091516 111X924 10X400 

112 Bulgaria FRN fin/* 07/28/24 76X069 8.7800 

113 Ecuador FRN 3ft 02/281 5 71.6670 4X300 

121 Toyota Motor 6ft 07/220 2 98X566 6X500 

131 BgbFln Ireland 6ft 031901 99X000 6X800 

134 Bulgaria 2ft 07/28/12 633375 3X5 00 

136 Panama 3ft 071 714 78X998 4.7700 

111 Mexico 

112 Bulgaria FRN 

113 Ecuador FRN 
121 Toyota Motor 
131 Bgb Rn Ireland 
134 Bulgaria 

136 Panama 

138 Mexico A FRN 6X67212/3119 94.7000 7X500 

119 France OAT 
139 France OAT 
1 77 France BTAN 

6 04/2504 103.1300 5.8200 
59> 04/25/07 963000 5.70 00 
5 0316/99 100.7500 4.9600 

101 France B-TAN. 41* 070202 97X100 4X200 

21 6 Britain 
221 France OAT 

4 01/2800 98X000 4.0600 
8ft 04/25/22 120.7000 6.8400 

Finnish Markka 

129 Finland sr 1999 
199 Finland Serials 

11 011509 109.149310.0800 
7ft 041806 109.0954 6.6500 

French Franc 

184 France BTAN 
201 FranceOAT 

111209 106.0900 6.6000 

5Vj (M/2507 99.8200 5X100 

.Japanese Yen 

124 Spain 3.100009/2006 106.7500 2.9000 

171 NTT 2VS 07/2507 101.6250 2X600 

1 78 Onlario Hydro 5X500120709 96X708 5X400 
208 World Bank 4 Vi 03/2003 115ft 3.9000 

2285EK 4.15000511.01 109.0150 3.8100 

140 Poland Inter 4 10/2714 85.0625 4.7000 

144 Mexico B FRN 6X35912/3119 92X310 7X700 

145 Ecuador FRN 6% 02/28/25 793535 84100 

146 Venezuela 6<V« 0301/20 92.9400 7X300 

150 Argentina FRN SVr 040101 116X320 4X500 

152 Mexico D FRN 6«Ve 12/2 VI 9 94.7393 7.1900 

153 Vattenfall zero 080508 94X756 6.7600 

155 EIB zero 1106/26 13.9368 6.9900 

156 Arg 554 040107117.7382 4.7700 

158 holy FRN 5X938051202 99.8900 5X000 
160 Brazil 6 091513 79.7500 7X200 

168 Korea Dev Bk T* 051506 98X710 7.3300 

1 75 Philippines Fix Bft 100706 99X447 B.7900 

176 Brazil 8ft ■ 110501 102.8750 8X300 

179 Arg Bant 8ft 050902 100X333 8.6800 

185 Canada 6V» 071 502 99.0000 6.1900 

188 Canada (M 07/2105 98.8750 6.4 500 

191 Panama FRN 4 071716 91.6505 4X600 

198 Poland FRN 6*» 10/27/24 97X971 7.1100 

202 Mexico par B 6ft 12/3119 80X750 7.7700 

203 Russ Fed 9ft 11/2701 101.9098 9.0800 

205 Fannie Mae 5331309/06/00 993400 53400 
207 Onlario 6 02/2106 95.0000 6X200 

209 Cois Cent Bques zero 120507 98.7011 5.7100 

2l251gma Rn 6ti O70WO 100X000 6X700 

214 Philippines 6ft 120117 86X750 7X400 

218 Com mere 5X938010901 99X700 5X200 

21 9 Argentina 11 1Q0906 113ft 9.7100 

220Svefl$k Hand 5.718809/00/98 99.9365 5.7200 
222 Peru Pdl 4 03071 7 66X275 6.0200 

223 Venezuela FRN 6ft 031807 90X887 7X800 

227 BNG 6+4 070802 99.B046 63900 

230IADB 6Va 03/07/07 99X750 6.6300 

232 Canada 5ft 010001 97.8161 5.4 200 

234Mydfo FRN 6** 090907 88.9427 7X700 

236 Mendoza 10 090407 100X750 9.9600 

237 Boyerische LB 6ft (W2507 99.1250 6X800 

239 Bco cam Ext. 7'i 020204 93.3750 7.7600 

240 Kellogg 6ft 08060? 99.3750 4.1600 

241 Argentina 8*s 12/2003 99.6250 8X100 

245IADB 6ft 06/2702 99X000 6X100 

PARIS — It’snoi yet a boycott, but 
investors are notably absent from the 
international capital market — dis- 
mayed by tiie increasing volatility in 
the foreign-exchange market and con- 
fused about whether interest rates in 
the United States and Germany are on 
the verge of being increased. 

In fact, both the bond and currency 
markets are caught in a maze. The 
Deutsche mark has rallied sharply 
against the dollar and is back to levels 
last seen in mid-July — in part be- 
cause of a belief that the mark, is more 
likely to gain against the yen than the 
dollar and partly because of frequent 
rumblings from the Bundesbank that 
higher rates are needed to keep in- 
flation contained. 

The fear of a German rate increase 
is already built into prices, with the 
futures rate on three-month marks as- 
suming a quarter-point rise bv early 
winter and a three-quarter-poim rise 
by early summer. But the fact that the 
mark's 6.7 percent rally since early 
August is itself equivalent to a tight- 
ening of policy could eliminate the 
need to raise interest rates. 

"It's a no-win situation." Thomas 
Mayer at Goldman Sachs in Frankfurt 
said. “The mark’s recovery reduces 

the need for the Bundesbank to raise 
rates, but if the futures market is dis- 
appointed and rates aren’t hiked, the 
mark will come under attack. 

“If the Bundesbank delivers the 
rare hike, the dollar could end the year 
at around 1.70 DM,’’ he said. The 
dollar was quoted at the end of last 
week at 1.7715 DM, down from a 
midyear peak of 1.8905 DM. 

*‘|f the Bundesbank doesn’t move, 
or if the Fed increases U.S. rates, the 
dollar could test the August high," 
Mr. Mayer said. 

Against this background, investors 
are reluctant to commit new funds. 
What they do buy is very short-term 
paper, such as the three-year dollar 
notes sold last week, or floating-raie 
paper, which offers the best protection 
against a rise in interest rates. There 
also is some appetite for “spread 
product" — paper sold at such a high 
premium to government benchmark 
rates that it provides a cushion against a 
change in official rates. 

As an example. Mexico was able to 
sell seven-year notes denominated in 
euros. Payments for the issue are 
made in European currency units, the 
precursor to the euro, the European 
common currency that is scheduled 
for introduction Jan. 1, 1999. The is- 
sue was increased from the initially 
targeted 300 million euros to 400 mil- 

lion euros, thanks to the hefty pick-up 
in yield offered to investors — 230 
basis points, or 2.3 percentage points, 
over what the French government 
would pay. The paper was sold 
primarily in Continental Europe. 

Korea Development Barik also 
scored a big success, issuing $1 J bil- 
lion of paper, up from an ini ended 
S500 million, and managers reported a 
massive oversubscription, with final 
orders of around S3 billion. 

South Korea, although not caught 
up in the recent currency turmoil ra- 
ging through Southeast Asia, has its 
own financial problems with mount- 
ing corporate failures and banks hold- 
ing baa loans. As a result, the spread on 
its paper has widened significantly, 
with the spread on Korea Develop- 
ment Bank s 10-year issue having ris- 
en from a low of about 53 basis points 
above benchmark rates at the start of 
the year to a peak of 130 basis points 
early this month. 

Although rated A- 1 by Moody's 
Investors Service Inc. and double- A 
by Standard & Poor's Corp., the pri- 
cing on the bank's paper was closer to 
what a borrower with a triple-B credit 

ating would pay — 1 15 basis points 
ver U.S. government levels for $600 

million of seven-year notes and 9S 
basis points over the benchmark on its 
$900 million of four-year paper. 

1 46 Venezuela 
150 Argentina FRN 

152 Mexico D FRN 

153 Vattenfall 

155 EIB 

156 Arg 

158 ifaijf FRN 
160 Brazil 
168 Korea Dev Bk 

175 Philippines Fix 

176 Brazil 
179 Arg Banf 
185 Canada 
138 Canada 

191 Panama FRN 
198 Poland FRN 

202 Mexico parB 

203 Russ Fed 
205 Fannie Mae 
207 Onlario 

New International Bend Issues 

Compiled by Paul Fioren 



Floating Rate Notes 

Beneficial Home Equity 

Over l-montti Libor. Average Ufa 7 years. Private Placement. Fees not disclosed. (Salomon 

CIE Porisienne de 

Over 3- month Libor. NoncaDable. Fees 0.175%. Denominations SiOOOO, (Deutsche Morgan 

113U 9.7100 

5.718809/00/98 99.9365 5.7200 
4 030717 66X275 6.0200 

Compagnie Bancaire 
First Oilcaga”NBC 
Den Noreke Bank 

0.10 99.895 — Over 3-nwrrth Libor. Noncallable. Fees 0.175%. (CommerzbonkJ 

— Ow3-month Libor. Reaffemi at 99X34. Noncafcbte. Fees 0.1 75%. (Lehman Brothers.) 

— Over 3-month Libor. Nor callable. Fees 0.75%. (Chase ManhattanJ 

Bbor 100.025 

Interest ft* be 3- month L/bor. NmaaHbh. Fees 0X8%. (CSFSJ 

227 BNG 
232 Canada 
234Mydfo FRN 

236 Mendoza 

237 Boyerische LB 

239 Bco Cam Ext. 

240 Kellogg 

241 Argentina 

General Motors Acceptance 

— Over 3- month Libor. NoiKoRabfe. Fees 0X25%. (Merrill Lynch.) 

General Motors Acceptance 

— Over 3-roontti UOar. Nancallable. Fees 0225%. (Merritt Lynch. ) 

Moancrest Funding 

2012 0.175 

Over 3- month Libor. Callable In 2001 thereafter 0X5% over 3-month Libor. Fees 035%. 
Denominations Cl MOO. (Citibank lntt.1 

International Bank for 
Reconstruction and 

0X0 100.065 — Under 3-nranlh Libor. Noncollable. Fees 035%. (Morgan Stanley.! 

The Week Ahead: World Economic Calendar, Sept. 15-19 


Coco Colo Enterprises 

A schedule at rn*s weed's eccrwfi^ and hnanaei wants, compiled hr ft w mtemalional Herald Triune by BtonCerj Buswss Nows. 


Expected Hong Kong: Annual meeting of the 
This Week World Bank and the International 
Monetary Fund, from Monday to 
Sept. 23: BankBoslon Corp-. SBC 
Warburg. HSBC Markets and others 
sponsor the 1997 Emerging Mar- 
kets Roundtable. Saturday and 


Weimar, Germany: French-Ger- 
man summit; President Jacques 
Chirac, Prime Minister Lionel Jospin 
and other members of the French 
government to meet with Chancellor 
Helmut Kohl and his ministers to . 
discuss the euro. Thursday and Fri- 


Fort Worth, Texas: National News- 
paper Association's annual conven- 
tion. Wednesday to Saturday. 

New Orleans: National Association 
of Business Economists' annual 
meeting, Sunday to Wednesday. 

L-Bank, State Development 
Agency of Baden- 

2002 6 ft 101.254 99.30 Feoffemg at 9947*. N oncqioble. Fees I ft^i. raafwrwn Bromaraii 

2001 6Vie 100.955 99.76 , Reoffereri at 99X55. Non callable. Fees 1 ft%, (UBS.l 

2000 5.62 100 — NoncnltaNe. Fws 1X0%. Denominations SI OXOO.drril Bonk of Jooon .1 

Merita Bank 

Merrill Lynch 
Societe Genera le 

Sept. 15 

Hong Kong: Government holds 
land auction. 

Japan: Respect-for-the-Aged Day. 
Government offices, markets and 
most businesses closed. 

Oslo: Norway holds general elec- 

Earnings expected: Sonae Inves- 
timentos. Modelo Continente, In- 
parsa-lndustria & Participacoes. 
Sonae Industria, Portugal Telecom. 
London & Manchester. 

Lima: Peru to receive bids from na- 
tional and international investors for 
sale of the Yauncocha copper and 
silver mine. 

Earnings expected: Brazil Beatty. 

UBS Australia 
Deutsche Bahn Finance 
Helba InM. Finance 
Norddeutsche Landesbank 

DM 1.000 

Coisse Centrole Desjardins 
du Quebec 

perpt. 7.15 99.988 
2004 6*. 99.171 

2000 BIT - 100.88 

2000 6ft 100.995 

2001 3ft 91.08 

2007 5 J «; 102.106 

2002 4ft 101.085 

2007 5ft 101.464 

2002 5 100.068 

Semtanniftrify- Callable at par in 2002. F ees 0 . (Meiri II Lynch. ) 

None tillable Fees IU5%. (Merrill Lynch.) 

Reoffered at 99.70S. Noncatlobie. Fees i xrfib. [Societe Generate.) 

RwWwwJ at 99X2. Noncolloble. Fees 1 ftft. (Paribas.) ~ 

Reoffered at 89x8. Nonaillable. Fees 1 WWUBS.) 

Reoffered at 99X31. NomWMMe. Fees 3?J /Deutsche .Morgan GrenNI.) 
Reoffered at 99.335. Nonajjiable. Fees 2ft. iBZW.h 
Reoffcred at 99X14. Noncolloble. Fees (Deutsche Morgan Grenfell.) 
Nonce (fable. Fees 0.30V (Credit Agrtcale.) * 

Development Bank 

(TL300.000 2007 10 101.296 

Reafferod at 99.746. steps down la S'rt, in 1999. Fees l ft**. (Cartpto.) 

Mediocredlto Lombardo 

ITL200.000 2000 zero 85.95 — 

Tuesday Tokyo: Tomy Co., a toy maker, lists 
Sept. 1 6 its shares on over-the-counter mar- 
ket; Bank of Japan releases its 
monthly report on financial markets; 
Ministry of International Trade and 
Industry releases figures on July ser- 
vice-company sales. 

Bamberg, Germany: Finance Min- 
ister Theo Waigel holds news con- 
ference after annual meeting of man- 
agers of state-owned companies. 
The Hague: Government's 1 998 pre- 
liminary budget and economic fore- 
casts scheduled for release. 

Washington: Labor Department re- 
ports consumer price index for Au- 
gust; Commerce Department re- 
ports July business inventories and 
sales: Federal Reserve releases in- 
dustrial production and capacity uti- 
lization for August. 

General Electric Capital 

2004 312 101.115 — 

Yield 5.176%. Noncolloble. Fees | j.%. (Canute.) 
Reoffend ol 99.54. Nor*caBable. Fees 1 ft*. (Paribas.) 

Bremer Landesbank 
Kredllanstalt Aldenburg 

2004 7ft 100.05 
2003 5ft 101X73 

Reohfted at « JO. Noncailabte. Feas I j 7 %. (Swiss Bank Carp.) 
Rwffered at99X71 Nonoailable. Fees l (Morgan Slanley.l 

European Investment Bank 

Wednesday Tokyo: Money-supply data forAu- 
Sept 17 gust: trade figures for August; re- 
vised industrial production figures 
lor July. 

Inter- American 

Development Bank 

2007 2 Vs 98.931 

2001 4.15 ioo 

— NancoOabte. Fees 0J2S“„. (N Ikko EurnpoJ 

Paris: Finance Minister Dominique 
Strauss -Kahn discusses proposed 
new tax and financial measures for 
the 1998 budget. 

Earnings expected: Britannic As- 
surance. Next. Bowthorpe. Gallaher 
Group. Wassail. Maybom. Colruyt. 

Mexico City: Finance Ministry re- 
leases industrial outputfor July; cen- 
tral bank releases foreign-reserves 

Washington: Commerce Depart- 
ment reports August housing starts. 

— Noaraltebto. RetfeMiwbte art maturity Vi UX. DoOars of J 13.79 yen per dollar. Fw | • 

Last Week's Markets Euromarts 

Stock Indexes 

Money Rates 

Eurobond Yields 

Sept 18 

Wellington: Resen/e Bank of New 
Zealand releases latest economic 
forecasts; government releases fi- 
nancial statements for the year end- 
ed June 30. 

Tokyo: Land Agency releases an- 
nual land prices for 199G. 

Paris: Bank of France monetary 
council meeting. 

Prague: Half-year gross domestic 
product figures. 

Earnings expected: Sun Life & 
Provincial Holdings, Zurich Group. 
Nestle. Deutsche Telekom. 

Seattle: National Center for Asia- 
Pacific Economic Cooperation holds 
meeting. Treasury Secretary Robert 
Rubin speaks on U.S. interests in 
Asia and the global economy. 
Washington: Trade balance in 
goods and sen/ices for July. 

Sept 19 

Taipei: Ministry of Finance auctions 
first book-entry government bonds 
of 30 billion Taiwan dollars. 
Earnfngs expected: Broken Hill 
Proprietary. Nalgai. Kosugi Sangyo. 

Stockholm: Government presents 
1998 budget to Parliament. 
Earnings expected: Etectrabel. 

Mexico City; August unemploy- 

Earnings expected; Adobe Sys- 

United 5igiw 
D"J Indus. 

DJ Uhl. 
5ft PIM 
55 P 500 
Nasdaq Cp 
Niktci 2ZS 

T&E Indus. 
C2 ciS 

UolH-d Staler 
Uijcdu"? rale 
Prime iatc- 

Federal lund 1 ! rate 

W lz WJ n tMqb Yr low 

Can money 
3-monHi interbank. 

17.965 80 1865017 

4/848X0 4.994X0 


Bank botv rate 
Call mwioy 
3-nunfn interbank 

6.759.70 4.743X0 

263427 1924J1 

3,£S1,B) 4100X7 

Hong Kpnq 
Mono iwg 




1X47046 M5&3X5 


nitwrentton rate 
Call money 
J-mofllti interbank 

Call money 
3'tnontti Interbank 

U.5.*. tom term 6 A3 hM 7.09 4 .tf 

U.5. 1 mdm term 63* 633 6.84 6J» 

tenn 6.18 6.17 6X1 5.96 

Pounds sterling 7J6 7J2 775 7X9 

French fronts 4.96 4.98 sne tu. 

[Mftan lira 6X0 636 7n Sib 

Danish kroner SSJ IS S.W t j! 

Swedish kronor sjt sif 

ECUs, longterm i.flt, 4 « s S? 

KWjP'dmltm, 539 539 5^ 4.76 

5 577 S.76 651 s« 

5-S S’" 7M 

vm S f 45 151 696 

>en 1 61 159 J.15 ijfl 

Somax Luxembourg stock exchange. 

Libor Rates 

923.36 937.02 

Gold Soot. 12 Sept. 5 - 

London p.m !)■ S 321X5 

IVbrftf (rttfev wrn Morgan SttMet Capitol Inti Pcnpe-Znrc 

y_Sj l-nonm t-nvamh 

□eiitserw matt SJ* French franc 

Pouno sterling 7ft ^ Ji* ECU 

Sriwws.-Uowfc Bon*. Reuters. 

l*fl»nlh 3-mMriti (wnomi, 
' » 3ft jr.* 

i: . 4 ’ * 4ft 




Weekly Sales tapl „ 

Primary Maricof 

1_ C»0«| B* Euiooeor 

Ctrninhf. . N0>S * NWS 

,0 - 4 1519 512/. 2,176.3 

emwert. — _ 17 1 

IJ-5S9 - 0 B-^U.1 <2,9958 UUlOfl 
Total 11X61.7 iaSS7X 14.2255 12654,9 
^onbory M grt^t 

Com Bk EureelMr 

$ NotiS S ifue 

5tro.ghts2SX97J 1^505X100314.7 20.91 S 4 
Cmivert. 1,1975 e 75 J 2257.0 iMai 

PRNs 21 J71X 122047 25X00J 24122'f 

'A55\. 14,788. lSStafl. 53(ilto 

Total 44,717. 44,174.304031. 577.0*' 
worre: £ unclear, CettetBank. 


H1 No '*»ii„ 

fit**' lnn>s 





Think big? 

wish l 0 fmance , l„^. s ,., le , merna , hnjl pr „ iccl , 





PAGE 13 

Think twice! 

ccond opinion is. always srr 
German bank with imernarii 


A second opinion i» always smart. 

From a major German bank with mnrnaiiriui experience. 

.VOAOOFl TSCHl UVUHB l* fc CffiOZf \Tg*Ll 

Radical Shift at World Bank 

Chief Seeks Small Projects and Private Expertise 

By Richard W. Stevenson 

Ne " m Turk Times Sen-ice 


*mem, watching people wife hS ne£ h £i 
njniaxtg water experience the simple pleas- 
ure of opening a tap. 

The World Bank had teamed up with 
poverty-fighting organizations, the city gov- 
ernment, the water company and local res- 
joenis to install simple sewage and water 

The project, Mr. Wolfensohn was told, 
had created a profitable new market for the' 
water company, improved health and freed 
thousands of women in the community from 
the crippling daily ritual of dragging buckets 
of water up from the bottom of thebfl. 

a s ? a,e ’ ” was a tiny victory for 

the World Bank, which has had only in- 
termittent success in bringing hope and im- 
proved living standards to the world’s 
poorest nations. Bur for Mr. Wolfensohn. 
who has led the much-criticized interna- 
tional agency for two years, it was a moment 
that brought to life how the bank can and 
should work. 

pie project was of a manageable scale, 
and it made economic sense. It combined 
private investment with World Bank ex- 
pertise-Jt could be replicated elsewhere. And 
it had the support and involvement not only 
of governments and other official bodies but 
also of the people it was uying to help. 

“I would watch the women turn on the 

water, and sometimes they would cry, but 
always it would be with happiness," Mr. 
Wolfensohn said. “I cried, because how can 
you not? 

But if his trip to Brazil was heartening, it 
was no more than a brief interlude in his 
battle to stop the bank's loss of influence, 
improve irs record in fighting global poverty 
and ensure its survival as the flagship of 
international development agencies. 

There is more at stake than the World 
Bank s reputation. The entire development 
field, in which the bank is the biggest and 
most influential player, is now under scru- 
tiny as never before, in both rich and poor 

Critics say hundreds of billions of dollars 
in development aid have failed abysmally in 
efforts to build foundations for sustainable 
economic growth in many regions. 

Even supporters of the agency acknowl- 
edge that results have been disappointing in 
too many countries. 

‘ ‘Development, particularly in Africa, is 
the preeminent moral challenge facing man- 
kind, and the World Bank's role has never 
been more important." said the U.S. deputy 
Treasury- secretary Lawrence Summers, a 
former chief economist at the bank. 

It is too early for Mr. Wolfensohn 's efforts 
to have had suiy significant effect on the 
bank’s record; by its own accounting, a third 
of the projects it backs fail to create any 
enduring benefits. 

But through charm, exhortation and oc- 
casional bullying, he has clearly focused the 

See BANCER, Page 15 

■ N»f Vefc Ten"* 

\nrrTViutztp~i(L< r ni< 

James Wolfensohn, with statue to the fight to end river blindness. 

Mahathir Softens Up 

Investors Say Leader Admits Mistakes 

Strong Sales Mask European Carmakers 9 Problems 

By Barry James 

International Herald Tribune 

FRANKFURT — Despite the 
healthy financial performance reported 
by some manufacturers at tire Frankfurt 
auto show, Europe’s carmakers ap- 
peared headed for a bumpy ride. 

Even market leaders like Volks- 
wagen AG and Daimler-Benz AG are 
likely to have a hard time staying ahead 
in a market that is already glutted and 
increasingly competitive, analysts said. 

The industry has largely recovered 
from a crisis in 1993, when new car 
sales slipped to 11.25 million units, 
compared with 13.5 million the pre- 
Sales in 1997 

turers. One of its main targets could be 
France, where sales of Japanese cars are 
relatively low because of import bar- 
riers, and where the possibility of rapid 
sales growth is greater. Toyota would 
become a powerful rival to Renault and 
PSA Peugeot Citroen SA, and some 
analysts say the intensified competition 
could force a merger between the rival 
French car groupsT 

' At the same time. General Motors 
Coip. has announced a major expansion 
plan abroad, and its Adam Opel AG 
subsidiary in Germany is planning a raft 
of new models by the end of the decade. 

Higher sales ’this year have not re- 
sulted in higher profits for most man- 
ufacturers. Instead, the companies have 

vjous year. Sales in iyyv are again 
likely to be in excess of 1 3 million units. . . . had to cut costs and. improve, productiv- 
compared with 12.8 million in 1996. 

But the Economist Intelligence Unit 
predicts that sales will decline to 125 

million units in the year 2000, a loss 
equivalent to the output of two medium- 
sized auto plants. 

The European Commission estimates 
that Europe has an excess capacity of 
some 5 million vehicles a year. Yet in a 
few years there will be added output 
from Japanese and possibly Korean 
rivals that will increasingly move into 
Europe with the lifting of import quotas 
at the end of the decade. 

While Renault S A recently closed its 
factory near Brussels because of over- 
capacity, Toyota Motors Corp. of Japan 
is pl annin g ro build a plant nearby in 
northern France where there is a heavy 
concentration of component manufac- 

ity to meet the challenge from lower- 
priced but often sophisticated imports, 
such as the cars produced in South 
Korea and Eastern Europe. 

In fact, the healthy figures for 1997 
give a misleading impression of the 
state of the industry because sales were 
lifted by government aid for new' car 
purchases in Italy Mid Spain, following 
a similar boost in France. 

Although the French aid was with- 
drawn 1 1 months ago, its effects are still 
being felt, because people who took 
advantage of government incentives to 
buy new cars in 1995 and 1996 have not 
yet returned to the market. Sales in 
France fell more than 22 percent be- 
tween January and August compared 
with the corresponding period last year. 

Since the fust German auto show 100 

years ago, when eight cars, including a 
Mercedes, were exhibited in a Berlin 
horel, no model type has been as suc- 
cessful as the medium-sized family 
hatchbacks that have ruled European 
roads for more than two decades. 

No large auto manufacturer can af- 
ford to neglect the sector, no matter ho w 
crowded it is. The Golf sedan, a new 
version of which has been introduced 
with much fanfare at the Frankfurt 
show, accounts for nearly half of Volks- 
wagen ’s sales. Even Mercedes-Benz, 
manufacturer of lordly sedans, has 
entered the compact hatchback market 
with its new A-series. 

Because so many manufacturers are 
churning out hatchbacks, it is often dif- 
ficult to differentiate between compet- 
ing brands. Gone are national pecu- 
liarities such as Teutonic stolidity and 
French eccentricity. 

So a problem that all volume car- 
makers face is how to assert their in- 
dividuality while making a car that ap- 
peals to a broad range of drivers. 

Meanwhile, the technology gap be- 
tween established manufacturers and 
more recent competitors is closing rap- 
idly. More than 40 percent of the average 
car is made by subcontractors, the more 
advanced of which have turned from 
malting components to building entire 
subassemblies. The latest factories, such 
as the Mercedes-Benz-Societe Suisse de 
Micoelectro tuque et d'Horologje joint 
venture to build the miniature Smart car, 
put the auromakers and their suppliers on 
die same site. By incorporating the latest 

sub-assemblies, even relatively young 
manufacturers such as some of those in 
Korea can quickly build up a high level 
of competence and frequently challenge 
their European rivals on technology as 
well as price. 

"Any competitive advantage gained 
through a unique product is very tran- 
sient," said Volvo’s chief executive, 
Tuve Johann esson. “Even if acompany 
can introduce a distinct product, histoiy 
shows us that it will not be long before 
others copy it" He said The use of 
modular platforms, allowing a variety of 
car types to be built on the same frame- 
work, would accelerate this process. 

Crav*6 if O'- Our Surf Fmu DufUKSn 

KUALA LUMPUR — Prime Min- 
ister Mahathir bin Mohamad met Sun- 
day with foreign fund managers as part 
of his government's efforts to reassure 
nervous investors about Malaysia' s eco- 
nomic policies. 

In contrast to previous discussions 
between officials and fund managers, 
this time the prime minister conceded 
that Malaysia may have made mistakes 
in trying to stem a sell-off in irs stock 

“I think the fund managers were im- 
pressed by the humility displayed by the 
prime minister,” said James Alexan- 
dra ff of Arisaig Partners in Singapore, 
who attended the meeting at Mr. Ma- 
hathir's residence. He said Mr. Mahathir 
"admitted that some of these recent ac- 
tions have probably been misguided." 

Specifically, Mr. Mahathir, who is 
known for his tough pronouncements, 
admitted that a decision to restrict trad- 
ing in 100 blue-chip stocks was a mis- 
take. the fund manager said. 

“He said it was a misunderstanding 
to do with the definition of 'designated' 
stocks," he said. 

The “designated securities" label, 
which effectively blocked short-selling 
in the stocks and shortened trading set- 
tlement periods, was lifted a week ago 
afteT being bitterly criticized by foreign 
investors, some of whom found them- 
selves trapped in trading positions. 

Mr. Mahathir also provoked con- 
sternation when he repeatedly blamed 
foreign speculators for Malaysia's eco- 
nomic woes, alleging a “racist" plot to 
destroy his country's progress. 

Bur in recent weeks, senior govern- 
ment official* have gone on a mission to 
woo back alienated foreign investors. 

Mr. Mahathir’s deputy. Finance Min- 
ister Anwar Ibrahim, held a closed-door 
session with the same group of fund 
managers Friday, and Daim Zainuddin, a 
government economic adviser, spoke 
with investors over the past week. 

Back from a trip to Mongolia and 
Kyrgyzstan, Mr. Mahathir met for 90 
minutes Sunday with about 50 fund man- 
agers from the United States, Europe and 
Asia who have been in town since the 
end of last week for a conference. 

Fund managers said that while they 
were pleased with reforms Malaysia 
was making, they were not yet sold on 
the country's economic fundamentals. 

After a 20 percent drop in its currency, 
the ringgit, since early July and a nearly 

30 percent loss in share prices since the 
stan of the year, Malaysia has hastily ctft 
back nor only on the week-old trading 
curb but also on several big projects such 
as the $6.2 billion Bakun dam. 

Malaysia's biggest economic problem 
“is confidence," said David Roche of 
London-based Independent Strategy. “It 
needs foreign direct invesror confidence 
and confidence from Malaysians that 
things are going to get better and that 
they can invest their money here." 

Some fund managers said they ex- 
pected Malaysia's growth rate to slow: 
from the S percent-plus pace seen for 
almost a decade. Mr. Roche said the 
long-term growth rate could be around 
75 percent, while Sean Chan of TCW in 
Hong Kong said he expected 7 percent to 
75 percent. Malaysia has insisted it will 
see more than 8 percent growth in 1 997* 
(Reuters. Bloomberg) 

Honda to Lift 
Production to 
Meet Demand 

Bloomberg News 

TOKYO — Honda Motor Co. said 
Sunday that it would resume night shifts 
at its main production base for the first 
rime in five years to meet overseas de- 
mand, a move that could further increase 
trade tension with the United States. ' 
U.S. officials have warned Japan not 
to increase auto exports to revive its 
sluggish economy. On Thursday, die- 
Japanese government said the economy 
contracted 2.9 percent in the second 
quarter compared with the first, its worst 
performance in almost 25 years. ’ 
Honda reported its best monthly sales 
ever in the United States in August, with 
an increase of 38 percent compared with 
the year-earlier period. Meanwhile, the 
Big Three U.S. auromakers sold 3.38? 
vehicles in Japan in August, a drop of 
26.9 percent. ' 

Japan's current-account surplus, 
which measures the flow of goods. ser= 
vices, investment income and other 
transfers, surged by 63 percent in July 
from the year^earlier period, to 906 bil- 
lion yen (S7.56 billion). 


Racetracks Place Big Bet on Internet 

By Andrew Beyer 

Washington Post fan-ice 

A lthough the thor- 
oughbred industry 
is reputed to be 
stodgy and resist- 
ant to change, it is rapidly 
embracing some high-tech 
innovations. Most U.S. 
race tracks have established 
sites on the Internet, and one 
in particular may provide a 
glimpse of the sport's future. 

In many ways the Inremer 
is a perfect medium for the 
racing industry. People inter- 

ested in the sport need access 
to a vast atnounr of infor- 
mation, and getting it has al- 
ways been a little difficult. 
Finding out the results of a 
race quickly, moreover, often 
requires the use of cumber- 
some or expensive telephone 
result lines. Now. such in- 
formation can be only a few 
mouse clicks away. 

The Del Mar raceway in 
Southern California, whose 
summer racing season ended 
last week, has been a trail- 
blazer in cyberspace. The 
track ( began 

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lasr year to offer continuous 
audio coverage of its entire 
racing card — Trevor Den- 
man’s calls of each race, plus 
announcements and handi- 
capping analysis in between. 
The necessary RealAudio 
software can be downloaded 
free from the Web site. This 
year, Del Mar introduced 
Video coverage as well; the 
closed-circuit television feed 
appears on the computer 
screen just as it does on mon- 
itors in the track, showing the 
tote board, post parade and the 
rears themselves. The tech- 
nology is barely out of the 
starring gate, and the quality 
of the video transmission is 
jerky at best; one viewer de- 
scribed the races as looking 
“like a big worm swimming 
in a river.” 

Nevertheless, the technol- 
ogy is certain to improve, and 
it won’t be long before a ra- 
cing fan will be able to sit in 
front of a computer and see 
everything that he or she 
could in a simulcast facility. 

Besides coverage of its 
races, Del Mar presents a 
wide range of information — 
entries, payoffs, iare 
scratches and changes. It of- 
fers handicapping contests 
for Web site visitors as well 
as a “chatroom." 

.Many other tracks have 
developed Web sites that use 
advanced technologies and 
display excellent graphics. 

Woodbine Race Track in 
Toronto ( 
provides up-to-the-minme 
odds on its races, plus those 
of the Tracks it simulcasts, 
principally for the benefit of 
telephone-betting customers. 

Louisiana Downs has de- 
veloped an excellent Web site’) oriented to- 
ward customers who want 
handicapping information. Jr 
publishes daily result charts, 
complete with footnotes, plus 
an array of useful data — post- 
position statistics for all dis- 
tances, records of trainers with 
various types of horses, a tab- 
ulation of the most successful 
trainer-jockey combinations. 

These may be especially 
useful for simulcast custom- 
ers who don’t have first-hand 
knowledge of the track. 

As more ho rsep layers get 
in the habit of using the In- 
ternet, it will be a natural 
development for racetracks 
to take wagers via computer. 
Nobody in the United States 
has offered off-track betting 
in this form yet. but it will be 
simpler and quicker to place 
bets with a keystroke instead 
of a phone call. 

Besides its usefulness as a 
vehicle for information and 
wagers, the Internet may ben- 
efit horse racing in another 
way. It is a common lament 
that the sport is not attracting 
new, yonng fans. But the 
people it wants to reach are 
the very people who are most 
likely to be surfing the Web 
and are apt to be intrigued by 
the mathematics involved in 
handicapping and betting. 

“People fluent in using 
computers lend to like mind 
games." Mary Shepardson 
of Del Mar said. Some of 
them may discover that han- 
dicapping the horses can be 
one of the greatest mind 
games of all. 

Internet address: 

• Recent technology articles: 






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INTERSELECTION - The International Exhibition for Volume Retail Fashion 


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MIDEST - The Incernaa'ona! Subcontracting Exhibition 


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CONFORTEC INTERNATIONAL - Trade Show for Household Appliances 


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JOUET - International Toy Fair 

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U.S. Insurer 

Spruces Up 

i For a Sale 

« y Joseph B. Tre aster" 

— - /VfM ' Tintrs Sr n ice 

panyhas been revived and is°exl 
announce Monday that it is 


pS” uld hnng - much « 

I T * ie b°°k value, or net worth of 
Jie company is about $500 million, 
ind life insurers have sold recently 
f\ P two and a half to three timek 

J Analysts and bankers said they 
1 x P ect ed tbe availability of the in- 
; “«> create considerable interesL 
Everybody in the business is 
oolong to achieve economies of 
cale one banker said. “The size 

is nghr. It s large enough, but not so 
arge as to knock out a lot of po- 
tential buyers.” 

• j A sale will be subject to the ap- 
proval of major creditors, the New 
Jersey Superior Court and Elizabeth 
Randall, the commissioner of bank- 
juig and insurance in New Jersey. 
|Ms. Randall, who. at the direction of 
, | the court has been presiding over the 
recovery as chairman of Mutual 
I Benefit, said the company had fully 
'recovered and was ready to resume 
normal operations, more than two 
H years before the target date of Dec 
■j 31, 1999. 

Larry Mayewsfci, an analyst at 
A.M. Best Co., a rating agency, said 
that potential buyers might include 
some of the big mutual life insur- 
ance companies, such as Prudential 
Insurance. Metropolitan Life. New 
York Life sad John Hancock. 


PAGE 15-' 

Odd Couple Stands Out in Currency Game 

By Carl Gewirtz 

Intrmoriunu! Hcruld Tribune 

PARIS — A currency pairing that has rarely 
attracted attenbon created a sensation by 
sweeping into the leading position in the for- 
eign-exchange market Iasi week. 

The emergence in the limelight of the 
Deutsdie mark-yen rate was stunning for two 
reasons. By assuming the dominant role against 
the yent the mark was able to break free from its 
light linkage to die dollar. And in so doing, the 
mark gave traders a glimpse of what a passive 
victim the dollar might become if the euro, the 
European Union's planned common money, 
emerged as a strong currency. 

The long-standing leading cross rates in the 
currency market are dollar- marie, dollar-yen 
dollar-sierling and dollar-Swiss franc. Befitting 
us role; as the world's leading currency, the 
dollar is a party to each of them. These coup- 
lings are significant because a change in the 
dollar-njark relationship, for example, will af- 
fect thes mark’s relationship with other cur- 
rencies i — which is why Europe is so de- 
lerminec to replace the mark with the euro. 

Just how detrimental these couplings can be 
to outsiders was demonstrated last week, when 
the dollar tumbled 1 .8 percent against the mark 
simply a> an innocent bystander to the fallout 
from the coupling of the mark with the yen. 

This odd couple owes its sudden popularity 
to politics. 

For currency traders, the yen is a sure loser. 
Japan's economy contracted at an annual rate of 
11.2 percent in the second quarter despite re- 
cord low official interest rotes of only 0-5 
percent. With the nation's banks still suffering 
from bad loans contracted during the boom of 
the 1980s and new losses likely from troubles 
now engulfing Southeast Asia, there is no pros- 
pect that interest rates will rise soon. 

Thus, paying 0.5 percent to borrow yen that 
can only depreciate in value and to then sell 
them for dollars (earning 5.5 percent) or steriing 
(7.2 percent) or marks (3.2 percent) remains a 
compelling opportunity. 

But for all the certainty that the yen can only 
keep depreciating, there is considerable con- 
cern about how much it can move against the 
dollar. This was demonstrated with force early 
last week when ihe dollar tumbled 2.5 percent 
against the yen after U.S. Deputy Secretary 
Treasury Lawrence Summers indicated that 
Washington wanted to see a Japanese recovery 
led by rising domestic demand and not by rising 
exports file led by a weak currency. 

The safest way to bet on yen weakness is not 
against the dollar, but against the mark. It works 
this way: Yen are sold for dollars, and dollars 
are sold for marks. On Friday, the dollar rose 1.2 
percent in Tokyo to 121 yen and the dollar fell 

0.5 percent to 1.7715 DM. The mark rose 1.7 
percent, to 68.3 yen per DM. 

'■'With the dollar caught between the hammer 
of the mark and the anvil of the yen,** says 
Jonathan Wilmot at CS Fust Boston, the foreign 
exchange market ‘ ‘ is getting a foretaste of what it 
could be like, trading as a bystander” in a system 
where the euro is the key currency partner. 

For the week, the dollar lost 1.8 percent 
against the mark. Now trading at a level last 
seen in mid-July, the dollar itself has become a 
worry, and Paul Meggy esi at Deutsche Morgan 
Grenfell reported that institutional investors 
positioned for a continuing dollar rally “are 
scaling back aggressive positions. ” 

Technical analysis are in the forefront of the 
worriers. John Taylor at FX Concepts said he 
expected the dollar to retreat to 1.60 DM by the 
end of the year. But Simon Crane, a trading 
adviser to banks, insisted that rates were moving 
because of weakness in the yen rather than the 
dollar and said he did not expect the U.S. 
currency to fall below 1.74 DM. 

At J. P. Morgan, Ron Leven said the dollar 
was only experiencing a correction and was set 
for a rebound to test the year's high of 1.89 DM 
once the Federal Reserve Board raised U.S. 
interest rates, which he said was most likely to 
occur in November. Without such a rate hike, he 
said, the dollar's rally from its mid- 1995 low of 
1.3720 DM “is over.” 


Beijing Schedules Cuts in Tariffs 

BELTING (Reuters) — C hina said Sunday it would slash 
tariffs to an average of 17 percent from 23 percent in a move that 
is scheduled to take effect Oct. 1 and is aimed at accelerating its 
long-stalled effort to join the World Trade Organization. 

“The move fully demonstrates China's determination and 
confidence in taking part in international competition and 
cooperation with a more open attitude," the Xinhua news 
agency said. China has been seeking to join tbe world trade 
body on the easier terms offered to developing countries, but 
its application has been held up by opposition from Western 
nations led by the United States. 

Israelis Strike Over Pension Changes 

JERUSALEM (Bloomberg) — Israeli union representa- 
tives began limited strikes in what officials said could become 
a “long-term'* struggle against the government's plans to 
reform pensions and overhaul the economy. 

Those striking Sunday included employees of Bezeq Ltd., 
the state-controlled phone company, and Israel Electric Corp., 
the state-owned utility. The Histadrut, a labor federation, is 
protesting planned pension revisions and measures believed to 
threaten jobs. 

Boeing Sues U S Airways Group 

SEATTLE (Reuters) — Boeing Co. has sued U S Airways 
Group Inc. over the earner’s decision to cancel an order for 48 
of the manufacturer's jets and to place a large order with its 
European rival. Airbus Industrie. 

Boeing said Saturday it had filed suit in Washington stare 
charging that the airline had refused to make payments on 
eight Boeing 757s and 40 Boeing 737s that had been on order 
and were valued at about $2.2 billion. U S Airways said it 
would “vigorously defend” its position. 

T ^ ___ - __ wuuiu vigorously oercuu us position. 

Internet Lan Be a Tangled Web of Stock Fraud u.s. Targets j.p. Morgan Trader 

C? NFW YORK fNYT) — Federal authorities arrested 

By Leslie Eaton 

M ft'/* Times Service 

NEW YORK — Be careful what 
you say about stocks over the In- 
ternet — you could be inadvertently 
furthering a securities fraud. And if 
there is no-hing inadvertent about 
your comments, you could end up 
spending a year in jail. 

That, at least, is what is hap- 
pening to Theodore R. Melcher, 51 , 
who until late last year published an 
Internet investing newsletter called 
SGA Goldstar Whisper Stocks. 

The newsletter had only a few 
hundred subscribers, but it was 
copied and posted all over Internet 
bulletin boards and in chat rooms 


devoted to “talking” about stocks. 

Perhaps unwittingly, those who 
disseminated the newsletter on the 
Internet were helping to perpetrate 
securities fraud, federal prosecutors 
say. They say Mr. Melcher secretly 
received stock in the companies he 
was praising in the newsletter — 

stock that he sold while urging in- 
vestors to buy. 

The most notorious of Mr. Melch- 
er's stock selections was Systems of 
Excellence, better-known as SEXI, 
its stock symbol. In part because of 
his efforts, the stock zoomed from 
about 27 cents a share in January 
1 996 to almost $5 by mid-1996 be- 
fore regulators halted trading; SEXI 
shares now go for about 1 cent each, 
and the company has filed for bank- 
ruptcy-law protection. 

Mr. Melcher has been sentenced to 
12 months in prison and ordered to 

pay a $20,000 fine. His lawyer did not 
return telephone calls seeking com- 
ment The Securities and Exchange 
Commission filed a civil suit against 
Mr. Melcher in November and is 
trying to get him to pay back roughly 
half a million dollars that it contends 
he made by selling SEXI shares. 

Helen Fahey, the U.S. attorney 
for eastern Virginia, said the SEXI 
case “should be a clear signal to 
those who use the remarkable tech- 
nology of the Internet to snare vul- 
nerable citizens in a worldwide web 
of deception.’’ 

NEW YORK (NYT) — Federal authorities arrested a 25- 
year-old junior analyst at J. P. Morgan & Co. and charged him 
with insider trading. The government said he had made illegal 
profits of more than $350,000. 

The Morgan employee, Roy Handojo, is an Indonesian 
citizen who was working in Manhattan. Federal prosecutors 
said Friday he had traded securities of three companies that 
were involved in confidential merger negotiations. 

For the Record 

•Thailand's Communications Ministry will submit plans 
for the privatization of the state telephone organization to the 
council of economic ministers, local dailies reported. (AFP) 

• United Saudi Commercial Bank and Saudi Cairo Bank 
have concluded the first banking merger in Saudi Arabia. 


BANKER: World. Bank Chief Shifts Focus to Seek Smaller Projects That Include Private Expertise 

Continued from Page 13 

institution on the big question of what role it 
should play when official development efforts 
have been discredited by their own spotty 
record and are being made increasingly ir- 
relevant by huge pools of private capital flow- 
ing into developing nations. 

+ “He’s a breath of fresh air,” said Justin 
* ' Forsyth, director of Oxfam International, one 
of the biggest nongovernmental organizations 
working on development programs around 
the world. 

“He genuinely wants to make a difference 
and to make his mark by turning the bank 

around and making it an institution that ef- 
fectively tackles poverty,” Mr. Forsyth said. 

After just 26 months on the job, Mr. 
Wolfensohn, 63, has become the most activist 
and publicly visible president the institution 
has had since Robert McNamara stepped 
down in 1981. 

He has urged top officials to move from 
Washington to the countries they are respon- 
sible for helping. He is requiring hundreds of 
senior managers to go through several weeks 
of business courses on how companies that 
fail to adapt to change tend to land on the ash 
heap of history. The courses are followed by a 
week's stay in a poor village or slum. 

As many as 700 people, or 7 percent of the 
bank's work force, could lose their jobs in a 
continuing reorganization intended to make 
the agency more nimble and efficient 
Mr. Wolfensohn has made clear that ad- 
vancement at the bank will no longer be based 
on success in getting loans approved by the 
board but by the long-term success of loan 
programs in improving living standards. 

He wants the bank to see itself as a fa- 
cilitator and partner — with governments, 
other development agencies, grass-roots 
groups and other nongovernmental organi- 
zations and with the companies, investors and 
other sources of private capital that have 

transformed Asia and Latin America. 

In 1990, official development assistance 
from all sources totaled $563 billion, com- 
pared with $44.4 billion in private capital sent 
to emerging markets. By last year, private 
capital flows had swollen to $243.8 billion — 
nearly a sixfold increase — while official 
development aid had dropped to $40.8 billion, 
almost half of it from the world Bank. 

“It stands to reason that if our money is 
limited and there is great potential for the 
private sector, we must think in terms not just 
of what we do but how we can leverage what 
we do with the private sector,’' Mr. 
Wolfensohn said. 

French Retailer Sticks to Bid 

Btoomberg Newt 

PARIS — The battle of the French supermarket chains 
appears to be at an impasse: Promodes S A said it would 
not raise its bid of 27.8 billion francs ($4.6 billion) for 
Casino S A and Raliye S A in response to a counteroffer by 
Rallye for Casino. 

Promodes made the statement following Saturday’s 
decision by the founding family of Casino to reject die 
Promodes offer, saying itwouJd accept the rival offer from 
Rallye once French stock regulatory authorities approved 
it The family controls 16 percent of Casino's voting 
rights. Rallye already owns 33.2 percent of Casino. 

“Onr bid stands as is," a Protnodes spokesman said. The 
purchase would have made it France' s largest retailer. 

EUROPE: Finance Ministers Advance Calendar for the Euro 

Continued from Page 1 

president of France, in an in- 
terview with the German 
magazine Focus. 

The EU commissioner in 
charge of monetary affairs, 
Yves-Thibault de Silguy, in- 
sisted at the meeting here that 
there would be no delay in the 
scheduled starting date for the 
euro in January 1999. 

"The euro will arrive on 
time/’ he said. “Those who 
believe it won’t have bad in- 
tentions or are badly in- 

uu European Commission of- 
Wficials acknowledge that they 
still have a lot of work to do 
before the average European 
will be persuaded of the ben- 
efits of trading in his or her 
marks, francs or guilders for 
the still-abstract euro. In fact, 
not before the middle of 2002 
will euro coins will jingle in 
their pockets. 

But as of Jan. 1. 1999, the 
euro will be the official cur- 
rency of the countries joining 
the monetary union, and it 
will be the official unit of 
exchange among banks and 
financial institutions. 

In other words, there will 
not be an exchange rate be- 
4 rween French francs, 
Deutsche marks and other 
currencies in the single- 
money system. 

The national currencies 
will endure for a while, but 
they will be merely expres- 
sions of a common reality. 

It might have been more 
straightforward simply to set 
the conversion rate for me 
euro and apply it immedx- 
ately, rather than waiting until 
January 1999. but this could 
not be done for a technical 

reason. „ , 

The euro will replace an 
existing form of exchange 
called the European currency 
mil, which is based on the 


%4iat were members of 
* European Community before 
he entry of Austria, Sweden 
and Finland. 

Some of those countries 
will be in the monetary union, 
and some will choose not to 
join or fail to meet ihe enterra 
and be outside. 

II will take time to establ sh 

the relationship between the 

the euro and extern^ c 

cies, such as the dollar, wu 
not be known, of course, unB 
the euro comes into WJ 
% Tlte lime penod be£«« 
"the selection of money ™ 
ion members and 
date for monetary 

could leave some oppo 

lies for speculators, bu 


de Silguy said central bankers 
had preparedan “arsenal” of 
measures to deal with this. At 
the same time, he said, the 
fact that markets would know 
months in advance what the 
conversion rare between euro 
currencies will be in January 
1999 will encourage ex- 
change-rate stability and 
hasten the convergence be- 
tween the economies of the 
countries within die monetary 

But as economies come 
closer together, the factors 
that cause them to diverge 
will come increasingly under 
the spotlight. Fiscal fiblicy is 
one such issue. At its simplest, 
tax discrepancies are illus- 
trated by the hordes of Britons 
lining up to buy cheap beer 
and liquor at giant simermar- 
kets in Calais, or tbe Belgians 
lining up at Luxembourg sta- 

tions to fill up with cheaper 
gasoline. But it is also a ques- 
tion of governments dangling 
tax concessions to attract in- 
vestment to the detriment of 
their EU partners. 

The European Commis- 
sion is proposing a code of 
conduct to prevent tax abuses, 
but Luxembourg, which is in 
the EU chair, wants to add 
teeth io tbe measure. The 
irony is that Luxembourg, 
which allows secret banking 
and does not tax bonds, is a 
major contributor to fiscal 
disputes in tbe EU. 

Mario Monti, the commis- 
sioner in charge of tax mat- 
ters, warned that failure to 
coordinate fiscal policy 
would “sow the seeds of 
political conflict" among 
member countries and * ‘ dam- 
age integration.” 

Another cloud on the ho- 

rizon is the desire of Germany 
and the Netherlands to lighten 
their burden as net contrib- 
utors to the EU budget. 

The issue has not reached 
the acrimonious proportions 
of tbe 1980s row when Prime 
Minister Margaret Thatcher 
of Britain banged her hand- 
bag on the conference table 
and demanded. "We want 
our money back!” 

But Jacques Sanfer, tbe 
president of the commission, 
was concerned enough about 
the budding conflict to appeal 
for the debate to be postponed 
while the commission con- 
ducted negotiations for tbe 
entry of Cyprus and five na- 
tions in Eastern Europe. 

That could entail the di- 
version of funds away from 
present recipients such as 
Spain and Ireland to the can- 
didate nations. 




NO. CWU21S OF 1991 

IN THE MATTER of the Banking Ordinance 
(Chapter 155 of the Laws of Hong Kong) 

i and 

IN THE MATTER of the Companies Ordinance 
(Chapter 32 of the Laws of Hong Kong) 

i and 

ui THE MATTER of Bank of Credit and 

Commerce Hong Kong Limited {'BCCHK') 

notice of time limit for 


NOTICE is hereby given that by Order of the High Conn of Hong 
Konu Coun oi First Instance dated 28th July 1997, 31si December 
1997 was fixed to be the date on or before which creditors of BCCHK 
who have noi yet lodged their claims are to prove their debts or claims. 
Anv creditor who has not proved his debt or claim on or before the 
' a ...ill be excluded from the benefit of the distribution made 
next after that date and from the benefit of any previous distribution. 

A.R. Heartier, 

Official Receiver and Liquidator 

Station 12 la a member of the KPN Group 

Cl I ft T H Si U - o . 

Yes, he is m the middle of nowhere. Yes, ho is on-line to his office net- 
work. No, he doesn't hove the longest modem coble on the planet. 

What ho does have is the A itur, satellite communication service 
from Station 12 And that means he can dial into the world's tele- 
phone network from almost anywhere on the plane t. 

With a lap-top sued tormina I. the Altus service can be used to 
make telephone calls or send faxes and e-mail. Connecting via 
Inmarsat™' for as littfe as S2.AQ per minute,, to and from anywhere in 
the world. All you have to do is choose the service package that 
matches your requirements. 

For more information on Altus, return the form or call Station 12- 
today. We'll drop it in the mail for you right away. 

Altus from Station 12. If you can get there, you can call from there. 

7y pe of bus ineaa 

Ala ms 







Ptomoo post or fax this coupon to Station 12 Customer Services. PO Box 4 63. 1370 AL IJmuldan. Tho Nothortand*. 

Station 12* 
The ultimate 


For information call +M255 54 5 ill 

or fax *31 USB S46 IOO or e-mail to 





De La Hoya’s Artillery 
Cuts Down Camacho 

By Tim Kawakami 

LtnAh&tes Tlmsfc rvke 

LAS VEGAS — A fierce and fine- 
timed Oscar De La Hoya cut loose* 
and ail but cut down and conked out 
Hector Camacho. 

It was no knockout, but there were 
plenty of knocks. 

in a test of De La Hoya s ability to 
sustain the firepower — and Ca- 
macho's will to remain upright 
though logic and health dictated oth- 
erwise — De La Hoya punished Ca- 
macho, earning a dominant, unan- 
imous-decision vlctoiy before 1 3,644 
at Thomas & Mack Center on Sat- 
urday night to retain his World Box- 
ing Council welterweight title. 

Though De La Hoya had predicted 
a seventh-round knockout, his over- 
whelming aggression was a complete 
departure from his deferential, rel- 
atively disappointing (and disputed) 
decision last April over Pernell Whi- 
taker, another slippery veteran left- 

"He earned it / 1 a swollen-faced 
Camacho said afterward. “He did 

everything he said be was going to do. 

except he didn't knock me out/* He 
almost did, which would have been 
the fust knockout loss in Camacho s 
69 -fighr career. 

Absorbing a devastating attack to 
his body and face, Camacho, who 
won only a single round on any of the 
three judges’ cards — he was shut mil 

on the other two — went down far tte 

second time in his career In the ninth 

But the 35 -year-old Camacho 
scrambled to his feet, survived sev- 
eral other near-flops, stayed on his 
feet by grappling onto De La Hoya, 
and did not go down again. 

Seemingly wanting to inflict as 
much pain os possible, De La Hoya 
wrapped up the final three rounds by 
unleashing the most focused body at- 
tack of his career, cracking dozens of 
left hooks to Camacho's right rib 

Camacho ( 64 - 4 - 1 ) was penalized a 
point by referee Richard Steele for 
holding in the final round, which De 
La Hoya said came far too late. 

“He was very tricky, but I thought 
he held a lot," De La Hoya said. "He 
was trying to survive in there." 

Baggio Scores 
Twice, but It’s 
Not Enough 
To Beat Inter 


EmpoLi, 2 - 1 . 

On Saturday, once-mighty AC Milan 
settled for a 1-1 draw against Lazio of 
Rome when the visitors' Giuseppe Si- 
gnori scored on a penalty kick in injury 

MVMBMJMM Champions League 
contenders P 5 V Eindhoven and Fey* 
enoord Rotterdam both lost ground fa 
the Dutch premiers division Sunday, 
settling fora 1-1 tie. 

After five rounds, Ajax leads the di- 
vision on IS points, with Feyenootd 
second on 11 and PSV sixth on 9 . 

Ulrich van Gobbet, the Dutch in- 
ternational defender who returned to 
Feyenoord from Southampton this sum- 


Oscar De La Hoya landing a blow to the head of Hector Camacho hi 
a successful defense of his World Boxing Council welterweight title. 



IIauoa Le aque Stanmmo* 


east a varan 

Toronto ON OM JOES I • 

SmM* Ml Ml m >-7 II I 

Omens. Crabtree 181 and atoms 
OSvm& Sprimfc (7b TTwfln (7), Aynlo (A 
Stotumb (91 and R. VfflMns. Da.Wttwn 01. 
W-Ayota, HM. L-Ownem. 21-te HRs— 
Seattle, E. Mortem ( 26 ), Sanento ran. 





Kansu* Qty Md 260 108-5 * 2 







Amrtntoi 220 1*9 3ftt-8 • 1 

Me* York 





Rasadih Bona (6), SeMce [7k WMsenant 




jI 90 


(7k Be«a TO and MLSsmeneyi Watson, 






Hasegawd (4k DaMity to P.Harrte (71. 






Petdwl TO and Kreater. W— P. Harris 3-4. 


L— Bones. 34. 5u Peroism (24). 






Hite— Kansas aty. J. King (23). Palmer (21k 
V. Benttez TO. Anatrefta fowler U). 











Delian . 300 801 111-7 U 8 






Qatteod DM 01* *18-2 8 2 






Knagtte NL Myere TO. Mtcrt TO and 



Casanova- Liravrfc*. A.SmadC7kMoWerTO 





and Moyne. W-Keaglte 2-4. L-LlidUilck. 1- 






ft Ss-MtoeU (21. HRs— Detrott, Ftymon 






(30). Oakland, Splezfa (12). 






















New York 














31 ’A 












SL Louis 















total dwwon 















Son Diego 






AUEMCAN leaquc 




810-4 fl 



*1* I 


6 8 

Sepparv. Wwrfln 161, Mahay (7k On* (8), 
Gordon (9) and Hattebwg.- D'Amico, Fsttere 
r7L Dmta IB), DoJotm (9) and Mathew, 
SKnnefNM. W-Sr»pan, 72. 

6. 5e-Garto« 16). HR*— Boston, Gw- 
chnntra 2 cm, OLeary MS), Hattobwg (9). 
Omtad 9M Ml 083—9 14 « 
catena* MO W NO-4 JGJr.Wrtght 
shuev IB) and Borders; Drobek. Lertne <51. 
J.Datwta (?) and Fabregtn. W— Jr.WngM, 7- 

3. L— Draft*. lo-U. Hta-Owtand. 
Rdmhw (25?. TfcHtw 09), MatYWtams 

HwrYerk 152 Ml 4M-U 17 2 

Battmor* OH BOO 030— S 12 I 

Mwtdora Uarf TO, Stanton aj and 
Posada. Erickson, Rhodes GU, Bari* (6k 
Br.WWtoms (7) and Webster. e.Greeni m. 
W-Mendon, 64. L— Ertdaah 164 
Mtomseto 009 202 HM 9 * 
TOMS 012 010 lli-$ I I 

TraJAWer, FrJIodrigeei (6). Sntwteo (7).' 
Ritchie IB) and DiMten Burkett, WMestde 
ML Gunderson to W. Meredto to Bates 
(8). Saidana TO, ffettehmd (9) and l. 
Rwhtguu. W— Santana, 45 . l— S wfndeU, 1- 

4. Sv— Wettetand (29). HRs— Minnesota 
Coamer (to). Texa* Mtanzatet (35). 

ctadoan ooi oao aofr -4 o o 

PhfeMripMa 00* 000 820-2 « 0 

R u itoige f. Betttda (8). Shaw (9t and 
Fwdycte J.Otaar (8); Stechawon, Wtartoti 

(7) , Gwnea {A Ryan (9) oral Ltetrerttmt 
W— RamOnger, 7-8. L— stephenmv 64 
SV-ShjW (35). HRs-Ondntrtfc Shows (5), 
EdU.Pwel ( 1 M. 

Second mm 

tswhwii mm ow-i s 4 

rtta ad il p M fl 0M 020 30*-9 14 0 

Sctattrek. Fe.Rodtiowi (5), Wndwstw 
TO. Clweil (8) and J.OdVett M-Lettar (Md 
Estateda. W— M. Lriter. KM 5. L-Schomek. 
54 HR— PWtOdetuWn. EsIaMla W. 
Chtcuga HI 0M DM— t 4 0 

PHtAttM 110 010 Stot-i S 8 

Botista. a Myert (5), BottwtfWd (8) and 
Swvator Schrewt Labette (9) tmd KewJi*. 
W-Schmlctt, 9-7. L-Battsta. 0-4. 
Sv— UdeeAeCM- 

StMFrandm 000 1M 000-1 6 I 

PtotUO ON 900 000-0 8 3 

Rrntet Twrnej W, R.Hemandei CB1. 
Badi (9) and a Johnson; LHemonde*, Cook 

(8) and CJuhnson. W-RMtafc 12-6. L— L 
HomomtCL 9-t . Su-Beek (37). 

Mwodo 0M 000 RM 7 0 

AHanta 000 IN 000—1 0 1 

Thomson, tt. Mumt (81, Dtooto (9) and 
Marwroterg, Je.Reed TO; G-Mcddax 
Walden (9). Cothcr w) and EddJ’etM. 
W— M. Mwnb 3-1 L-WOhten, 5-6. 
Sv— DRrato (I*). HR— Attanta, klesha (23). 
SWiOtooe Ml 008 018-0 10 0 

SLLMlta 820 101 OBk — 4 7 I 

Ashbh Kroon IT). D. Vents (B) and c 
H tnmd a d . Flaherty TO; Marts, Possos t7>. 
C King (W> Eckwstoy (91 and DBfeSoe. 
W-Morts, 10-0. L— Ashby. 8-U. 
Sv— Echentef (35). HR-81. Lows, Lanktort 


Lm Angetos 080 2M 010-3 9 \ 

Kevtton 802 838 121-10 IB 1 

Park, Dtetfort (s). GatMe XA Hall (7). 
Unitary (B) and Ptozzw ROynntds, R.Sodnnr 
W, fl. Wnoner 19) and Ausmus. 
W-ReymndB. 7-10. L — Pork. 13-7. 
HRs— Las Angeles. Piazza OS). Houston. 

Expos 020 OM 000 000 001-3 7 1 

N.Y. 000 000 <20 000 MO-2 (2 2 

MVottteV KBhe ( 7 ). TVttWd (A feflWnoer 
TO, DeHart (12). PaNagu* (141. UthOm (IS) 
and ChavnfcBJ Jane*. L Wto TO, McMkhdH 
(103. Rajas 02), Cnutoid (IS) OM Ptdtt. 
w— Pnmogua i-S. L-cmiRni 2-5. 
8v— Urtdha (26). HR-MortfieaL R. White 
(Z»> Mt^ap BC-BBC-LRwscDmV)9i 

HewVwk 0M M0 001-2 3 0 
Baitnwn NO 010 MM 7 I 
KnRogera and Paowtar Mtwstnd and 
Hades. W— Mltatow 14-7. 1 — KtUtosen. 6- 
7. HRs— Battonanit Walton n>» RJtotovstm 
(S4), SWtnROT). 

OMttoBd m Ml no-* 1» I 

CNcflye 213 Ml OM-7 10 l 

HmWset. A. Lapel ML MomBh «. M. 
Jadwan (7), AssenmacherTOt Ptonk TO and 
S, Ahnw; Strottav N.Ow TO, Nh£)ray (7). 
Faofte TO. Korchnw TO and JfcKtod*. 
W-5tefta »L L— Wwshfcw, 13-6. 
Sv— Kanimer (15). HjMawMmd. S. 

D etna M0 010 100-5 I 0 

OoktoMl 000 M0 Ms-4 7 9 

Btofe Daren TO, Janfc TO and Waftecto 
Tetgheder, Gh»m TO, Wltorteh TO, WtoWer 
TO, tayiar (0), TJiAaitWM TO and Moyne, 
MoBno m. W-TWB hwtor. W. L-Btofr, 16- 
7. SV-TJltoMwNs Q). HRs— Oakland 
Grtnto (it, Brito CD. 

Km. City 080 088 180 OM 2—3 0 2 
rtddHata ON 010 MO ON 8—2 III 

POWeV. Haney TO, Pkhwtto ret, j. 
Mortgaatefy TO. Obon (12k BeuO (13) and 
Moctocto n e, MLSw een ey (OR Dtdtsod 
awvei (7), Jonm TO, Pmdvol TO. P.Harts 
(10k QKtotet H I). DeLeUa (1 1), Bmee (13) 
and Kreater, Enewnackm TO. W-Otsan 3-2. 
L— OeLada 64. Sv-8oM (1). HR-Kmw# 
Oty.Dye (7). 

M Wh e ts t a 200 ON MI-3 8 2 
Texas 111 122 W*-9 12 8 

(ewtodrern Nautty Ok RohetWon (71. 
ABdltom TO and StotohttK VOtontwe (8)1 
o.otrvez and M. Mucsdss. W-O. DBier 12- 
11. L— Tewksbury 6-12. HRs-Mfnneeohs 
Coomer (tl). Tam, D.Cedeno Ok 
Ju.Ganzatet 2 (37k F. Tbtw 2 TO- 
•••ton N1 8M 108-2 9 1 

NUtoreokae Ml 0M 808-1 4 0 

«W®flc*d Mahay «k Oml TO. Canton TO 
and Hasriman; Kod Wktknwn (7k Adamson 
(9) and Mtrthenyt Levts TO W-Wokefletd 
11-15. L-KOH 18-12- Sv— Gorton (7). 
HR-Basioa H a s ekno n (at. 

Terentb 000 100 023-4 t 1 

tMKto 010 ON 000-3 7 3 

tab Quartos TO. Rfesac TO, Eecobar (0) 
and B. Sdnftogor Ra Jotmsorv Owttton (7k 
TBrtto TO, Ayala (0) and DaWBson. 
W— Btcabar 3-1. L-Ayrta 18-5. 

HRs— Seattle, Buhner CB), Btoaets (5). 
NAnDtUL loaqvw 

OKMR 0M 0M ni-3 7 0 

Wl l to isI pWd 000 000 008-0 4 1 

Berta, Belinda (8). Shaw TO and J.OMei; 
MIArach SpntdBn TO and UeberttroL 
W-BurtM. 9-18. L— NlLdm 3-1. Sv— 
Show 06). HR-Ondnnatl W.Oeene 04). 
Sen Dtege 1M 200 NM ll 0 

St. lews 0M 2M 108-2 I 4 

Japanese League* 



Ctwnlc hi 

































































Svlbu 67 48 3 S 93 ' — 

fy* - « SO 3 MS i'> 

Wrtetou 58 59 4 496 10 

5®** , 56 61 1 479 12 

Nippon Ham 55 65 1 458 WV 

Lotte 50 63 2 442 16 

ChunicM i Hamhm o 
Vakiitt s» Yftmlorl 0 
v 0 kohamo 6 HkashOnaO 



-llt'inorabU* Moments (roni .loliunic Malkcr: 1 I\ 1)1 ,|( ( l |> „ 

/:/ jm / > ' % -v 


thll NrtwiiM. A- (f&lrtnititfiii iton-Fvittfl) 1 fnlrmarHin,^ llnuhf fnlwnc >p/f \ /bttwnApt Ihl 



Roa&Wo found the target for the first 
time fa Serie A on Sunday with a spec* 
tacular goal as Inter Milan overcame 
two Roberto Baggio goals to beat host 
Bologna, 4 - 2 , fantt second victory in as 

inwy xaiura, 

T& Brazilian, who transferred from 
Barcelona over the summer m a oeal 
that cost Inter more than $55 mil bon, 

dribbled past Bologna defender 
Massimo Fag an In before unleashing a 
shot that flew just Inside the near post to 
give the visitors a 3-1 lead in the 51 st 

Fabfe GaJante, Maurixio Ganz and 
Freud) international Yuri Djorkaen 
scored Inter's other goals, while Baggio 
— once as highly priced and feared as 
Ronaldo *- scored in die 43 d minute 
and converted a penalty in the 57 th. 
Baggio, 30 , has flourished with Bologna 
after languishing on the bench much of 
foe past two seasons with AC Milan. 

Inter is joined atop the standings by 
Fioteutina, which has a matching 2 - 0-0 

Liverpool’s KarflreiM Rfedfe, left, was sent flying by Sheffield Wednesday’s Jim MagUton. Liverpool won, 2-1. 

and has a league-best five goals. 

Elsewhere, rookie Crishano Lucarelli 
scored twice, including the equalizer in 
the 62 d minute, as upstart Atatenta of 
Bergamo drew 2-2 at AC Parma. 

In other games Sunday, Vicenza de- 
feated Piacenza, 3 - 2 , and Napoli beat 

mer, broke through to score after 21 

But foe Rotterdammers tried to sit 
back on foe lead, and a Chris van der 
Weerden solo run earned PSV a penalty 
after the break. Wim Jonk made no 
mistake from the spot, and PSV pressed 
lard for a victory at foe end. 

Yugoslav Nebojsa Gudeh’s winner 
two minutes from time cave NAC Breda 

two minutes trom time gave NAC. Breda 
a 1-0 victory at De Graafechsm Doet- 
inchem in Sunday afternoon s other 

■NOLAND Rod Wallace scored twice 
as Leeds upended Blackburn, 4 - 3 , Sun- 
day in foe Premier League, leaving the 
Rovers in second place behind derend- 
mgehampion Manchester United. 

The loss for foe Rovers at home — ■ a 
match that featured all seven goals in foe 
first half — left Blackburn with 13 
points to 16 for Manchester United. 

minute, audHtabett Motenaarmade it 2 - 
0 in the 6 th. 

Blackburn's Kevin Gallacbermade it 
2-1 in the 8 th minute — his sixth of the 

season — airf Blackburn's Chris Sutton 
equalized eight minutes later, ft was 
Sutton's seventh goal to lead the Premi- 
er League. 

Instead of calming down, foe match 
carried on at a frantic pace with Wallace 
scoring again in foe 17 th to push Leeds 
up 3 - 2 . David Hopkin made n 4-2 in the 
23 d before Martin D ahlia scored for 
Blackburn in the 33 d. 

Leeds, after three losses in a row, 
became foe Bret team to beat Blackburn 
this season, Manchester United and Ar- 
senal are the only trains left without 

Sunday in foe First Division, Sun- 
derland won at Birmingham, 1 - 0 , on a 
goal in foe 72d by Michael Gray. 

On Saturday, fan Wright scored a hat 
trick to become Arsenal's all-time scor- 
ing leader with ISO goals, surpassing foe 
record of 178 setSl years ago by Cliff 
Basdn. The goals pushed Arsenal to a 4 - 
l home victory over Bohon. 

Manchester United defeated West 
Ham 2 - 1 . The West Ham goal by John 
Hurston was foe first yielded in 693 

minutes by Manchester United goal- 
keeper Peter Schmekhet. Roy Keane 
and Paul Schotes scored toe foe win- 
ners. ' : >i ft 

In foe biggest upset Saturday, New-' 
castle, which had played only two 
games and won them both* fell 3-1 at- 
home to Wimbledon, ft was Wimble- 
don’s first victory of foe season — thc s 
last of foe 20 Premier League teams to, 
get a victory this season. 

Liverpool downed Sheffteldj 
Wednesday > 2 - 1 . Paul face scored in foe 
55 th, and Michael Thomas gave Liv- 
erpool a 2-0 lead to foe 68 th. Sheffield 
Wednesday’s only goal was by Wayt». 
Collins in the 80 th. 

otMiANY Bayern Munich, despite; 
being outplayed in stretches, beat last-, 
place Hertha Berlin, 3 - 0 , on Saturday to 
takeover first place in foeBundesliga. , 
Munich’s new Brazilian striker,* 
Giovane Eiber, shot the tram ahead 1 - 0 , 
just before foe haft, but Berlin dom- 
inated play after the break as midfielder, 
Kjetil RekdaTs rocket Bom 18 meters- 
ricocheted off the crossbar. . I A 

CbMMjto Eitto* (4). H.Momiy (6k Raiska 
(7k TUfonai TO and Flaherty. Romwu (71; 
S.LWK, Baatteta Ok Rnggto (5k Pe t fa ivw k 
(7k F naoi twe TO and Mmteu W— Ertto* 
8-1 . HR-Son Dtegte -Ktynw 

SnFrandaes ON OM 801-1 3 8 
PtocMi 2M 148 IOfc-4 10 0 

GfirtWA JoteWone (3), DXennr (6k C 
Boltov (7k Md 8 m 6 qr 6 TO aid & Johnson, 
MraMb to IU. Brown and CJohhsan. 
W-kU Blown UJL L-Cartner 12-9. 
HR8-50H Fttmcteca, Benart (1). FtorWa. D. 
White 2 M, Mon QU. 

MtedMrt 300 02* 010 08-6 )4 8 

NMYortt 8M 0M OM 03—9 9 1 


Henaomoiv Bennett (9k UlWra (9k Wtlw 
(10k Ttwornn (11) ond FteMwn 
iHteqhawerv Wended (6), Acevedo (7k 
jo^rancD (10) and Frail A. CasWto CIO). 
W-JfcFwneo 5-3 L-Kfc* M 
HRs— fttenheal Lmtog (50). Hew Vartt 
Everett (13k Odkay (16). 

ChRflM 001 128 088-4 9 1 

PftMttgh 018 OH 008-1 7 1 
TtachsK Ptedotto TO, Patterson TO. T. 
Adams TO and Houston FXoatow, Peten 
(5). Sodowsky (6k Qatsttansen (7), 
M.WDfcte TO. Wallace TO and Rendod. 
W-Trtdwel Ml. L— F. Cortow 108. 
SV-T. Adams (16). 

CotoMto 02* 02) 328-18 U I 
Attanto 3*1 100 001-4 13 2 

RBaltoy, Holmes (6k Lakahlc (7k M. 
Munoz (to. OeJean TO and Mamrorto ff 
Keogte, Crther (7), Clontx (8). Embtee TO. 
C.F« TO and 4. Lope*. W— Hotows 81 
L— Collier 0-4. sv— o«Jeon (31. 

HR-Attdrta GrtBantoo (7). 

LasAngetos 010 000 000-1 S 1 

Houston 400 000 18*-5 7 8 

CandMtl D. Ruyes («, Osuna (7k 
To.WwirB {*) airt Pham Kte Maonortte 
TO and EuieWo. Aesmus (9). W-KOe 186. 
L— Caiudatt 186. HRs— Las Aretes. ZeOe 
(27). Hooeton, L Gomale* TO. 

Dolet 6. Lotte 0 
Ntppon Horn 4. Klntetw I 

Ydwd liYomhiMO 
Yokohama 7, HkoOhkna 0 
H 6 ftsnm<chunkrt 3 


KtoWsu X NtoRon Horn 1 
DaMS Lotte 2 




IMajor College Scores I 

Army 41, Lafayette 14 

Boston Cottage 31, Wtest VfrgWo 24 

Coast Gourd 22. RPI TOOT 

ttMd W 38 H aU ttsa s tawi 26 


Geofoetoero 0.C 1 9, Marts 1 13 

Johns Hopkins 34 Wsshtngton 8 Lee 2d 

Mdtoe 49, M«BsactHwelte6 

Mmr*36. RBtgeri7 

Penn 51. S2. TUmRle 10 

Rhode Island 35, Mew H^rtpshfle 21 

VBkmaw 35, Dehmaie 25 

Auburn 19. Mtesisstppt 9 

Cllodrt TO 5oum Flortda 7 

daman TON. Canton St 17 

Flortda 51. 50, Morytond 7 

Gaoigfa 3 k south Canton 15 

LSU 2A NUsstssIppI SL9 

North Corattm 2& Stontortl 7 

Rk*3Q Tutont24 

Sou them Mdh. 31, Artsmsas 9 

WHIknn&Mmr4l,VMI T2 

toVM54 Tuteo 16 

Krtwn l5>MfsKourt7 

Kansas SL 21 Ohio U. 20 

Miami, Ohio 49, Akren 20 

Michigan 27. Colorado 3 

MJcMgan 5t 5). Memphis 21 

MtoneoBto 53, town 51. 29 

Nsbraskd 3& Cert. Flortda 24 

N ortH i sntesn 24 . Duke 20 

Ohio SI. 44. Bawnng Green 13 

Purdue 28 Notre Ctome 1 7 

New Merfco 38, Tens-EI Paso 20 

Oklahoma si 3S. Fiesno St. 0 

Pittsburgh 35, Houston 24 

Tews Tech 58 SW LoaMona 14 

UCLA 64 Texas 3 

Utah 31 TewsCtoWton 18 

W. Tews A6M 34 SWOWohoma 7 

Nr Forte 25 UNLV 24 

Arizona 24 Ata.-Blrm Ingham 10 

Cotertda St 35, Utah 51 . 34 

Idaho 43, Idaho St. 0 

Oregon 24 Nevada 20 

W. Washington 35, Chapman 0 

*tebtagtar3A son Otago s>.3 

Wasrtngton SI 2& Southern Cal 21 

Weber 51 . 31 S. Utah 32 

wtscomlfl 56. San Joac St. 10 

Wyoming 35, HawoB 6 

Germain 18 t Bostto 14 Bohteam 13 ; 
•iiuuMO Toukww 11 GWngomp 11 .- Manedte lit 

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PAGE 19 

Rockies Sweep Aside Braves, 4-0 

04m IMn'Kruim 

Arizona Slate’s Jason Simmons, left, and Mitchell Freedman mauling a Miami receiver. Magic Bente^." 

UCLA Makes Texas Recall the Alamo 


By Jim Hodges 

Los Angeles Times 

AUSTIN, Texas — It was a dagger 
plunged deep into the heart of Texas: 
UCLA 66, No. 11. Texas 3. Go figure. 
The Longhorns’ coach, John Mackovie. 
couJdn’L “This was a real eye-opener to 
a-Iot of dungs to us,” be said after the 
game Saturday. And how. 

EightTexas turnovers — four fumbles 
and four interceptions — led to 42 
UCLA points in the Longhorns’ worst 
home less since the Alamo and the Bru- 
ins’ third most lopsided victory ever. 

What started as a conventional game 
— t UCLA stops Texas, drives fora Cade 
McNown-to-Jim McElroy. five-yard 
touchdown pass, stops the Longhorns, 
drives for a 44-yard Chris Sailer field 
goal — got unconventional in a hurry in 
.tfaeseCond quarter when the Bruins got a 
■ AMcNown- to-S kip Hicks touchdown 
Tpass of 43 yards and a McNown-to- 
Afike Grieb touchdown pass of 1 yard. 

The two scores came within 20 
seconds of each other, both on one-play 
drives set up by turnovers. Texas’s quar- 
terback, Richard Walton, fumbled when 

Jayson Brown sacked him and Kenyon 
Coleman recovered to set up the firsL 
Then Walton threw a pass intercepted by 
Larry Atkins, who returned it 38 yards to 
the Texas one to set up the other. 

Then the quick, merciful kill became 
long, drawn-out torture. 

In other gomes, reported by The As- 
sociated Press : 

No. 1 Penn State 52, Temple 10 

Temple ( 1-2) took a 7-0 lead 43 seconds 

Coubge Football 

into the game before the host Nittany 
Lions (2-0) scored the next 35 points. 

No. 3 Washington 38, San Diego State 

3 At Seattle, Brock Hoard threw for 3 13 
yards and four TDs — two to Jerome 
Pathon — as the Huskies (2-0) rolled. 

No. 5 Florida State 50, Maryland 7 At 
Tallahassee, Thad Busby was 26-of-34 
for 308 yards and two TDs in the first 
half as the Seminoles (2-0) totaled 559 
yards and held the Terrapins (0-2) to 
105 yards and nine first downs. 

No. 7 North Carofina 28, No. 17 Stan- 
ford 17 At Chapel Hill, Oscar Davenport 
completed his first nine passes and threw 

two TD passes. The Tar Heels (2-0) held 
the Cardinals (1-1) to 234 total yards. 

No. 10 LSU 24, Mississippi St. 9 LSU 
played without the injured Marshall 
Faulk, but his replacements filled in 
nicely. Rondel! Mealy had second-half 
TD runs of 1 and 3 yards, and Cecil 
Collins ran for 172 yards as the Tigers 
(2-0) beat the host Bulldogs (2-1). 

No. 14 Michigan 27, No. 8 Colorado 3 

At Ann Arbor. Brian Griese passed for 
258 yards and two TDs as the Wol- 
verines won easily. 

No. 9 Ohio State 44, Bowfing Green 1 3 
At Columbus, Michael Wiley returned a 
kickoff 100 yards and ran 7 yards for 
another score as the Buckeyes (2-0) won 
their 17th straight game over an in-state 
college, dating from 1921. 

No. 24 Arizona State 23, No. 13 Miami 

12 Mike Martin rushed for 105 yards 
and a TD, while JJR. Redmond added 
1 03 yards and also caught five passes for 
46 yards for Arizona State in Miami. 

No. 16 Auburn 19, Mississippi 9 At 

Auburn. Dameyune Craig hit Tyrone 
TD pass mid- 

Goodson with a 16-yard 

h the fourth 

held off the Rebels (2-1). 

way through the fourth quarter as the 
Tigers (2-0) b 

A Sale That Can’t Fail? Ali Mementos 

New York Times Service 

. A woman named Nancy, 
the mother of two young 
bays, had asked me to get an 
antqgraph from Mohammad 
All for her sons. This was 
1971, and I was off to Chica- 
go to spend a day with the 
once and future heavyweight 
champ in training for a bout 
against Jimmy Ellis. I told her 
I was sorry but that I couldn’t 
ask someone I was interview- 
ing for an autograph because 
wouldn't be professional 
“Oh, one little auto- 
graph,” she said. “The kids 
are crazy about AIL” 

“Well " I said, “if the mo- 
ment arises.” 

And so at day’s end I asked 
Ali if he’d sign an autograph 
for two boys. He said sure.- 1 
handed him pad and pen. He 
asked their names. I hap- 
pened to add that their mother 
had trouble getting them to 
clean their room. Ali wrote: 
“To Timmy and Rickie. 
From Muhammad Ali. Clean 
that room, or I will seal your 

I spoke to Nancy again re- 
cently and asked what had 
'happened to the autograph 
'and that potent piece of po- 
etry from the big, beefy hand 
of The Greatest himself. 

“I’m sure it’s around the 
house someplace,” she said. 
“I'm pretty sure the boys 
didn’t take it when they 

“Find it,” I urged. “It 
could pot you in ermines and 

In fact, Ali memorabilia is 
worth something, so it seems. 
An auction of more than 
3,000 pieces of Ali memor- 
abilia will be held on Oct 19 
at Christie’s in Beverly Hills . 
Highlights in the collection 
include the white tary-cloth 
robe, featuring the words 
jCThe Lip” and "The 
'Creaest,” that Ali wore into 
the ring for his first title fight 
ffiainst Sonny Liston in 19 
(worth an estimated $40,000 
jo $60,000). A scorecard 
from -that fight — Liston 
didn’t answer the bell for the 
e ighth round — is expected to 
command as much as 

If you’d tike to own a 
m owhpiece worn by All, it 
codd run you in the neigb- 
[whood of $800 to $1,200. 
™ old water bottle might set 
you. back $1,500. 

'IJhe • three-time world 
r eav yw eight champion, who 
1351 laced on die gloves 16 

years, ago (he lost a 10 -round 

decision to Trevor Berbick on 

Vantage Point/ Ira Brrkqw 

Dec. 11, 1981, in the Ba- 
hamas) and is now afflicted 
with Parkinson’s disease, is 
still one of the most recog- 
nizable names and faces on 
the planet, and, as years go 
on. one of the most beloved 
and sympathetic. . 

The auction has All's ap- 
proval. and a portion of the 
proceeds will benefit the 
Muhammad Ali Healing 
Project, whose stated goals 
are “to promote tolerance 
and understanding among all 

n I saw Ali in 1971, he 

was in the second year of his 
return to the ring after having 
been banned from boxing for 
three and a half years and then 
exonerated in a unanimous de- 
cision by the Supreme Court. 

“It's hard to train now,” 
Ali said at the time. “I got 
bigger things on my mind, 
bigger than beating up some- 
body. fighting’s not the thing 
anymore for me.” 

But he fought for 10 more 
years, and in such memorable 
battles as the so-called 
Rumble in the Jungle in Zaire 
in 1974, whan he upset 

George Foreman, to the 
Thrilla in Manila the follow- 
ing year when be retained the 
world heavyweight title by 
stopping Joe Frazier in the 
14 th round. 

The estimated price for the 
white shoes he wore during 
the Foremau fight? $20,000 
to $30,000. 

One thing not found in the 
collection will be a note Ali 
sent me a few years ago. He 
signed it and, as he sometimes 
does, drew a bean with lines 
shooting out from around it 
like the rays of the sun. I wish 
the Ali memorabilia auction 
luck, but I’m hanging on to 
that note for awhile. 


September 10th - September 21st 1997 

Reykjavik • Strasbourg • Sevilla • Roma • Tel-Avh* • Amman • Trabzon ■ Izmir. 

official sponsors 




The results of the first leg - Reykjavik to Strasbourg - show that 
the crews are taking the race seriously and intend to fight 
for the best position possible. 

Strasbourg, France, September 12 

In Group One (piston engines) Mathias 
Stillness and Gerard Guiliaumaud look 
the lead in “Lillie Speedy." a Glasair n, 
only eight minutes ahead of Dietrich 
Bauer and Jurgen Blasius, flying 
“Reaimn," a Beechcraft Bonanza, while 
Merce Marti and David Flinerman came in 
third, 36 minutes behind, in the “Spirit ni 
Freixenet.’ a Riper Oimmanche. Overall, 
the performances of Group One 
competitor?# were very good, as their 
piston engines allowed them to fiv low. 
avoiding the strong headwinds raced by 
high-flying turbocharged aircraft. 

Group Two (turbocharged! standings are 
provisional until the arrival of ‘Carolina 
Belle" tonight. The “Canuk" had u 1 stop in 
Teeside. Britain to have its engine fixed, 
and Us arrival Is up in the air. Cfc er the 
phone. Kan ile Jensen and Jeanne Ox >k 
of the “Carolina Belle" were in gix*i 
spirits, and everyone hripes that jean 
Detingis and Peter Bedells -Canuk" will 


be reunited with the other race 
participants before the next leg - 
Strasbourg to Seville - on Saturday. 

In Group Three, (turbines) there is a fierce 
hattle between the U.S. ‘Dash Ten" crew, 
which came in first with a 93 percent ratio 
on a four-hour. 45 minute flight, with 
French-American “TOM Knight Flight' 
only 20 minutes behind, and “Maya One" 
from Guatemala only six minutes hack. 
The next leg should he an interesting one: 
its shorter length will allow pilots to fiy at 
maximum power without much worry 
alxuit fuel bum. 

Group Four (jets') has only two 
competitors, the American Jim Knuppe’s 
‘Dream Machine" and Turkey s “Young 
Turks." As both are living Cessna 
Citations, the skill of the pilots will he a 
crucial factor. “Dream Machine" is 
leading, but only hy nine minutes. 

Details on the results and technical 
explanations are available on the race's | 
Web site. 


Visit our wth sire at: 


The Associated Press 

The Colorado Rockies won for the 
15 th time in 17 games, completing a 
three-game sweep of the Atlanta Braves 
with a 4-0 victoiy Sunday in Atlanta. 

Andres Galarraga’s eighth-inning hit 
broke up a scoreless duel between John 
Smoltz (14-12) and Pedro Astacio (11- 
9), who set a Rockies record with 12 
strikeouts. Pinch-hitter John VanderW- 
ai had a three-run homer in the ninth, his 
Erst home run since last Sept, 16. 

Colorado. 11 games out of first on 
Aug. 30. began the day six games be- 
hind NL West-leading San Francisco. 
Atlanta started Sunday 514 games ahead 
of second-place Florida in the NL East- 
Cubs 3 , Pirates 2 The Pittsburgh Pir- 
ates continued a September slide that 
may soon drop them out of contention in 
the NL Central, losing 3-2 Sunday to 
home side Chicago as Mark Clark re- 
mained unbeaten with the Cubs. 

While the Cubs won for the eighth 
time in 11 games, the Pirates have lost 
five of six and 14 of 19. 

Clark (13-7), who had been 0-5 
against the Pirates, gave up six hits, 
struck out eight and walked none in 
eight innings for his sixth consecutive 
victory. He is 5-0 in seven starts since 
being traded by the Mets. 

Turner Ward hit a tying pinch-hit 
homer off Clark in the eighth, but the 
Cubs scored the go-ahead run in the 
ninth on pinch-hitter Lance Johnson's 
sacrifice fly off Rich Loiselle. 

In games played Saturday: 

Orioles 6, Yankees 1 Mike Mussina 
pitched a three-hitter for his first victory 
in five weeks as the Orioles Aided their 
run of lopsided losses to the New York 
Yankees with a triumph in Baltimore. 

Mussina ( 14-7) took a one-hitter into 
the ninth innin g in Saturday's game and 
had retired 20 batters in a row before the 
Yankees got two hits around an error to 
avert a shutout He struck out eight and 
walked one. 

White Sox 7, indtam 6 In Chicago, 
Albert Belle, held hitless last weekend 
against his former team, drove in two 
runs. Belie, 0-for-ll in the Indians’ 
three-game sweep at Jacobs Field, hit a 
sacrifice fly in (be first innin g, a double in 
the third and an RBI single in the sixth. 

Royals 3 , Angels 1 Dean Palmer 
tripled to open the 13th and scored the 
go-ahead run on Tony Phillips’s error. 
Gregg Olson (3-2) was the winner and 
Rich DeLucia (6-4) the loser. 

Athletics 4, Tigers 2 In Oakland. Dave 
Telgheder (3-5) won a start for the first 
time since May 21, and Ben Grieve hit 
his first major-league homer. 

Red Sox 2 , Brewers 1 Tim Wakefield 
itched 7 l A strong innings and Bill 
laselman homered as Boston sect host 
Milwaukee to its fourth straight loss. 

Rangers 9 , Twinsa Juan Gonzalez and 
rookie Fernando Tatis each homered 

twice as host Texas won its fourth 

Gonzalez’s rwo-run shot in the first 
inning was the 250th of his career. He 
added a solo homer, his 37th this season, 
in the sixth and tripled in the fifth. 

Blue Jay* 6 , Mariner* 3 In Seattle. 

Randy Johnson allowed one hit in six 
innings, but the Mariners’ bullpen blew 
its 24th save. 

Johnson left with a 3-1 lead after six 
innings on home runs by Jay Buhner and 

Baseball Roundup 

Mike Blowers. Seattle's Ken Griffev Jr 
went 0-for-4 with three strikeouts. Grif- 
fey hasn't had a home run in six °ames 
since getting his 50rh last Sunday. 

Padras ®i Cardinals 3 Tony Gwynn 
reached 200 hits for the fifth time in his 
career and Greg Vaughn had a three-run 
double as San Diego beat Sl Louis. 

Mark McGwire remained stuck at 50 
home runs for the second game, going 1 - 
for-t with a walk and two strikeouts. 
The host Cardinals committed four er- 
rors, matching their season high. 

Reds 3, Phillies o In Philadelphia, Dave 

Burba (9- 10) allowed four hits in seven 
innings, retiring 15 straight batters at one ■ 
point, and Willie Greene homered. 

Mets 9, Expos 6 In New York, Carl 
Everett capped a six-run ninth inning 
with a game-tying grand slam, and 
Bernard Gilkey hit a three-run homer in ■ 
the 11th. 

Barites 8, Giants i In Miami. Kevin 
Brown (14-8) pitched a three-hitter and 
Devon White hit two home runs for 
Florida. Moises Alou hit a three-run 
homer for the Marlins, his 21 sl 

Astros 5, Dodgers i Houston took ad- 
vantage of Tom Candiotti’s record-tying 
four hit batters, and Darryl Kile struck 
out a career-high 13, sending visiting 
Los Angeles to its fifth straight loss. 

Cubs 4, Pirates 1 Pittsburgh stumbled 
again as the Cubs’ Steve Trachsel (7-1 1 ) 
won on the road for the first time since 
last Sept. 23. The Pirates have lost four 
of five and 13 of IS. 
i Rockies io, Braves 8 In Atlanta, the 
Rockies won for the Wth time in 16 
games and moved to within six games of 
the NL West lead, rallying from a 5-2 
deficiL The Rockies trailed by 1 1 games 
as recently as Aug. 30. 


rr _ # Jeffrey Booi/Thc Aamsucd P*f<» 

The Giants Mark Lewis sliding into second base as the Marlins'* Edgar 
Renteria completes a double play in the sixth inning. The Marlins won 8-1. 


The European 

UEFA Cup and the C 
their defeat by Athl 


16 September, UVE, 

UEFA Cup, AtMetico 
Madrid v Leicester City 

After fuU live coverage of 
the main game we present 
extended highlights of Celtic v 
Liverpool and Jurgen Klinsmanns 
European debut for Sampdoria 
against Athletic Bilbao of SpaJn 


18 Septem b er, UVE, Cup 
Winners’ Cup, First round 

Ekeren v Red Star Belgrade and 
Real Beds v Budapest Vhsutac, 
full Eve coverage of both games 


15 - 21 September, UVE, 

The Tour of Spain 
The Tour starts the week in 
Cordoba aid reaches Lagos de 
Covadonga with a climb 
considered to be the Spanish 
equivalent of the “AJpe-dHuez” **&?%>**<$, 



15 - 20 September, 

UVE, The World Air Games, 

The first event of its kind 
features 9 events as diverse as 

,, v... ; - .J ' 


FOOTBALL UCLA Romps Over Texas p. 1 9 SOCCER Ronaldo Comes Through p. 1 8 BASEBALL Rockies Drub Braves P- * 9 

PAGE 20 

Costa Is Victorious 
At Marbella Open 

tennis Top-seeded Albert 
Costa defeated second-seeded Al- 
berto Berasategui, 6-3, 6-2, in an 
all-Spanish final of the $328,000 
Marbella Open on Suaday. 

Costa, ranked ATP world No. 
15, was the aggressor through 
□early all of die 53-minute match 
on the clay courts of the Manuel 
Santana tennis club in the south- 
ern resort city of Marbella. 

After the victory, Costa said he 
had had “a lot of luck” defeating 
Berasategui, who is ranked world 
No. 26. 

• Felix Mantilla of Spain dis- 
posed of his countryman. Carlos 
Moya, for an easy 6-2, 6-2 victory 
on Sunday in the final of the Sam- 
sung day-court tonrnament at 
Bournemouth, England. 

It was Mantilla’s fifth tourna- 
ment victory this season and his 
fifth on clay. It also improved his 
career record on clay against 
Moya — ranked No. 5 by the ATP 
Tour — to three triumphs in seven 
matches. Mantilla is ranked No. 
1 1 worldwide. 

• In Tashkent, Uzbekistan, Tim 
Henman outdueled Marc Rosset of 
Switzerland to win the President’s 
Cup tournament on Sunday, the 
second ATP victory for the up- 

and-coming British player. Hen- 
man, the No. 2 seed, defeated Ros- 

man, the No. 2 seed, defeated Ros- 
set, the No. 3 seed, 7-6 (7-2), 6-4. . 

The Swiss player started strong, 
breaking Henman's serve in the 
first game, bar then lost his serve 
in the fourth game, double faulting 
three times. Henman, who was 
ranked 20th on the ATP tour be- 
fore the tournament, said after 
Sunday’s match that he felt good 
a U week and was playing “ very 
pure” tennis. 

• Still recovering from a knee 
injury, Steffi Graf will skip the 
season-ending Chase Champion- 
ships in New York and concen- 
trate on making her comeback at 
next year’s Australian Open. 

•‘That’s unrealistic,” Graf said 
in a German television interview 
Sunday when asked about the 
Nov. 17-23 tournament, where 
she is defending champion. ‘ ‘This 
time it's a very long break. I see 
the Australian Open in January as 
a real goal.” (AP) 

Doohan Captures Prix 

motorcycle RACING Michael 
Doohan broke Giacomo 
Agostini's 25-year-old record of 
1 1 victories in a season when he 
held off the challenge of two local 
riders, Carlos Checa and Alex 
Criville, to win the Catalunya 
Grand Prix on Sunday in Mont- 
melo, Spain. 

The Australian, already the 
500c c world champion for a 
fourth time, roared to his 1 2th 
victory of his remarkable season 
— his 10th in a row — but was 
pushed all the way by the Span- 

Checa, who swapped the lead 
with Doohan for much of the race, 
finished second nearly half a 
second behind, with Criville 
third, (AP) 

Ozaki Comes Up Short 

golf Capturing his first pro- 
fessional title. Hiroyuki Fujita 
won the $840,000 Suntory Open 
golf tournament Sunday by three 

Shooting an even-par 72, Fujita 
finished with a 14-under-par 274 
and overcame a charge by Japan's 
veteran pro, Masashi Ozaki. 

The 28-year-old Fujita started 
Sunday's final round with a four- 
stroke lead. He shot two birdies 
and two bogeys on the 7,027-yard, 
par-72 Narashino Country Club 
course in Inba near Tokyo. Ozaki. 
Japan's winningest golfer with 
105 victories, shot a 70 for a 277 
total and placed second. (AP) 



V - 

O’Meara Hangs On 
To Win Lancome by 1 

Victory Lifts US. Ryder Cup Hopes 


— Mark O’Meara of the United States 
saved par spectacularly on die last two 
holes to win the Lancome Trophy on 
Sunday and bolster the Ryder Cup 
hopes of his teammates two weeks be- 
fore the clash with the Europeans. 

A closing two-under-par 69 for a 1 3- 
under total of 271 earned O’Meara a 
one-stroke victory over Jarmo Sandelin 
of Sweden. Greg Norman of Australia 
and his compatriot, Peter O'Malley, 
shared third place a further shot back, 
each shooting 72 in the final round. 

The expected shootout for the title 
between O’Meara and the two Aus- 
tralians who led him by a shot after three 
rounds never really materialized and 
Sandelin unexpectedly provided the 
greatest threat when he posted a 67 to 
come in at 272, 12 under par. 

But O’Meara holed out from just off 
die green, 20 feet away from fee pin, 
after driving into trees at the 17th. At fee 
short 18th. he missed the green but 
pitched over a bunker to wi thin a few 
inches of fee pin to stay a shot ahead of 
fee Swede. 

O'Meara overtook his Australian 
playing partners wife a run of three 
birdies beginning wife fee second hole, 
but he then lost ground with a double- 
bogey and a bogey before getting back 
in front wife back-to-back birdies be- 
fore fee turn. 

After dropping a shot on fee 15th, 
O'Meara went ahead for fee last time 
wife a birdie at fee long 16fe from 10 

“With the Ryder Cup just round fee 
raer this is obviously a nice con- 

comer this is obviously a nice con- 
fidence booster for me,” said fee 40- 
year-old O’Meara, whose nearest Euro- 
pean Ryder Cup challenger was Lee 
Westwood of England, six shots behind. 
“My captain, Tom Kite, will know I've 
won ana my teammates will know and I 
guess this will increase their confi- 
dence. But they were already pretty 
confident already.” 

Zuelle Is Leader of Pack 

Yellow Jersey Swaps Again in Tour of Spain 


CORDOBA. Spain — Alex Zuelle 
did not expect to wear fee leader’s col- 
ors when the Tour of Spain opened in 
Lisboa nine days ago because he was 

Yet that is fee position he holds after 
deposing a fellow Swiss. Laurent Du- 
faux, after a 35-kilometer time trial on 
Sunday. “When the tour began I could 
not imagine that I could get fee yellow 
jersey with so little preparation,” said 
Zuelle, who started fee 22-day event 
under-raced and off form. 

Two weeks after a crash in fee Tour of 
Switzerland, he started fee Tour de 
France in July with 12 pins in a col- 
larbone fracture. After four days he quit 
to avoid aggravating it. 

Since then Zuelle has had only five 
days of racing and although only fourth 
fastest in Sunday’s time trial, 38 seconds 
behind Spanish winner Melchor Mauri, 
it was enough to give him the race lead 
by 32 seconds from Dufaux. 

“I did not ride so badly,' ’ Zuelle said 
“But this was not my best. It is to be 

content. “I lost only 46 seconds on 
Zuelle in the time trial. That’s stu- 
pendous for me. I surprised myself but 
wearing fee yellow jersey gave me a lot 
of motivation." 

Fernando Escartin of Spain lost his 
overnight second overall position after a 
crash on the rain-slicked circuit. 

He had to change bikes, but before bis 
spill was fighting a losing battle against 
the time-trial specialists. Escartin is 
now third overall, 2:14 behind Zuelle, 
wife two weeks to go before fee Madrid 


f) LSTivft 

expected because I am not yet 100 per- 
cent, but I am very satisfied 

cent, but I am very satisfied 
“The wind and rain affected fee race. 
I did not take any risks on fee comers 
even when the road was dry.' ’ 

Mauri, Zueiie’s teammate, clocked at 
41 minutes and 1 1 seconds, beat Sergei 
Gontchar of Ukraine by 21 seconds. The 
winner of the 1995 Vuelta, Laurent 
Jaiabert of France, was third, a further 
second slower. 

Mauri, Spain’s last tour winner six 
years ago, said: “I was fortunate be- 
cause the wind was not so strong when I 
rode as it was for other contenders.” 
Dufaux was 1:24 off Mauri’s pace but 

Srigii- hw.DoKn 

Laurent Dufaux of Switzerland on 
Sunday during the individual time 
trials of the Tour of Spain. 


He added: “The two saves at fee end 
made ir all possible of course. When 
your game is not quite 100 percent you 
feel fee pressure on your technique. But 
my putting made up for it.” 

Europe's Ryder Cup captain, Seve 
Ballesteros, who shrugged off 
O’Meara’s victory by saying it held “no 
significance” for the Ryder Cup. closed 
with a 73 for 285 after leading on Thurs- 

He said he would now be going borne 
for a rest to plan his Valderrama 

Norman had birdie chances od fee 
last two holes to match O'Meara's total, 
but failed wife both. He held on to bis 
top world ranking but was disappointed 
to miss out again in Europe after twice 
taking second places this season by los- 
ing playoffs. 

*T really just didn’t play well — 
nothing was in synch and it was all a 
straggle." Norman said. 

Colin Montgomerie of Scotland, 
seeking a fifth successive European Or- 
der of Merit title, remained at the top of 
the European rankings after carding a 69 
for 281, wife Bernhard Longer of Ger- 
many moving up to second after a 75 for 

Langer could have passed Montgo- 
merie for fee top spot but spoiled his 
chance with a double bogey on the 
fourth and a quadruple bogey on the 
ninth when he twice went into fee wa- 

^ v-T/; >..v: 


‘ F l: ~ ; " 


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Mark O'Meara chipping out of a bunker on his way to winning the Lancome Trophy in France on Sunday 

Bucs Beat Vikings to Stay Perfect 

Montgomerie, who had confided to a 
playing partner the day before he was 
thinking of playing full time on the U.S. 
Tour next year, dismissed that sugges- 
tion Sunday. 

Separately, fee European Tour’s ex- 
ecutive director, Ken Schofield, said no 
settlement bad yet been reached on fee 
subject of Miguel Martin’s replacement 

on Europe’s Ryder Cup team by fee Cup 
committee. Schofield said talks were 

committee. Schofield said talks were 
continuing and feat fee issue was also 
expected to be discussed by the players' 
tournament committee on Wednesday. 

The Associated Press 

MINNEAPOLIS — Horace Cope- 
land caught his first touchdown pass 
since 1995 and set up another score with 
a 49-yard grab as Tampa Bay remained 
perfect wife a 28-14 victory Sunday 
over fee Minnesota Vikings. 

A rookie, Warrick Dunn, scored on a 
52-yard run in the fourth quarter, help- 
ing the Bucs (3-0) to their best start since 
the 1979 team won its first five games 
on the way to the NFC championship 

Dunn, who had 130 yards and aTD in 
last week’s win at Detroit, finished wife 
101 yards on 16 carries. 

Trent Differ was 15-for-20 for 192 
yards and rwo TDs for fee Bucs. He now 
has four TD passes — matching his 
entire 1995 total — and no intercep- 

Jake Reed had six catches for 131 
yards for the V ikings ( 2- 1 ), who came in 
with the NFC’s top-rated offense. Bui 
until Brad Johnson ’s 30-yard TD pass to 
Cris Carter wife 38 seconds left, they 
managed only two short field goals by 
Greg Davis against Tampa’s tough, 
young defense, losing a home opener for 
the first time since 1986. Johnson was 
29-for-44 for a career-best 334 yards. 

The Bucs now are 8-2 since starting 
1-8 last season, Tony Dungy's first as 
their coach following four seasons as 
Minnesota’s defensive coordinator. 

Tampa Bay's perfect start is surpris- 
ing enough considering thai the team 
has lost at least 10 games in 1 3 of the last 
1 4 seasons. But fee Bucs also have taken 
over first place in fee Central Division 
in impressive fashion, upsetting San 
Francisco to start the season and then 
winning at Detroit and Minnesota after 
going 1-7 on fee road last season. 

Packers 23, Dolphins 16 The Green 
Bay Packers lost another Super Bowl 
starter and nearly another game, too. 

Gilbert Brown, fee champions’ 350- 
pound run stuffer, sprained his right 
knee in the first quarter and the Packers, 
playing without five starters from last 
year, struggled to a 23-18 victory over 
fee Miami Dolphins. 

Brett Favre threw two touchdown 
passes, including one to wide-open full- 
back William Henderson from 10 yards 
with 5:33 left as Green Bay (2-1) 
bounced back from a loss at Phil- 

Ryan LongwelJ, who missed a chip 
shot in the final seconds that would have 
beaten fee Eagles, hit all three of his 
field goals to counter four from Miami ’s 
Olindo Mare. 

The Dolphins' quarterback' Dan 
Marino’ hit former Packers receiver 
Charles Jordan with a 29-yard TD pass 
with 1:47 left to pull Miami to 23-18. 
That prevented Marino from going three 
games without a touchdown pass for the 
first time in his 15-year career. Jordan 
had four catches for a career-best 100 

His 2-point conversion pass failed, 
however, and Miami's hopes of an upset 
died when the onside kick was re- 
covered by Green Bay's Terry Mickens 
and Dorsey Levens gained 31 yards on 
three runs. Levens finished with a ca- 
reer-high 121 yards on 21 carries. 

Lions 32, Bears 7 Running like an All- 
Pro again. Barry Sanders helped drop 
the winless Chicago Bears to their low- 
est point in three decades. Sanders, held 

NFL Roundup 

to 53 yards in the season’s first two 
games, rushed for 161 Sunday as vis- 
iting Detroit tolled to a 32-7 victory. 

While fee Lions (2-1) excelled, 
Chicago (0-3, all against NFC Central 
rivals) looked aufufafterrwodecenr bur 
noi-quite-geod-enough efforts. The last 
time fee Bears opened with three losses 
was 1969. when they went 1-13 in fee 
franchise’s worst season. 

Rick Mirer, acquired in an unpopular 
offseason trade wife Seattle, made his 

Chicago debut after coach Dave 
Warms ted t benched starting quarter- 
back Erik Kramer in third quarter. 
Mirer's first possession ended with a 
fumble, and he finished 10 of 21 tor 90 

Scott Mitchell, meanwhile, respond- 
ed to criticism from the- Lions’ coach, 
Bobby Ross, going 16 of 25 for 215 
yards and two touchdowns. 

The game, however, belonged ic 
Sanders. He was at his juking, darting 
best and showed why he has 1L939 
yards, sixth on the NFL's career list. 

After averaging only 2.1 yards on 25 
carries in the first two weeks — wife 
Ross blaming himself for not giving his 
star the ball more — Sanders averaged 
8.5 yards on Sunday's 19 attempts. 

Sanders went 14 and 1 1 yards on fee 

Lions' first two plays, setting up the fust 
of four field goals by Jason Hanson. His 

of four field goals by Jason Hanson. His 
18-yard run preceded Mitchell’s 16- 
yard touchdown pass to Johnnie Morton 
as Detroit went up 10-7 in the second 

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ihe Packers Dorsey Levens being brought down bv the Dolphins' Zach 
Thomas (bottom) as Derrick Rodgers closes in. Green Bav won, 23-18- 

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