SOME FOLKS JUST DON'T KNOW HOW TO HANDLE A GOOD IDEA TAKE BILL OVERHOLT A MANAGING DIRECTOR FOR BANKERS TRUST AND A FORMER ASSOCIATE OF HERMAN KAHN'S AT THE FREEMARKET HUDSON INSTITUTE MR OVERHOLT COMBINES A KEEN STRATEGIC GRASP WITH ONTHEGROUND EXPERIENCE IN ASIA FROM BURMA TO THE PHILIPPINES LIKE HIM OR LOATHE HIM HE'S ALWAYS INTERESTING WHETHER DEFENDING AMERICA'S INVOLVEMENT IN THE VIETNAM WAR DURING HIS HARVARD DAYS OR STANDING UP FOR DENG XIAOPING AFTER TIANANMEN SQUARE MR OVERHOLT ALMOST DEFINES POLITICAL INCORRECTNESS TODAY HE'S BACK AT IT JUDGING FROM HIS NEW BOOK THE RISE OF CHINA HOW ECONOMIC REFORM IS CREATING A NEW SUPERPOWER NORTON 431 PAGES 25 MR OVERHOLT RANGES FAR AND WIDE IN THIS BOOK AS HE TRACKS CHINA'S AWESOME ECONOMIC GROWTH AND EXPLODES MANY OF THE MISCONCEPTIONS NOW CLOUDING RELATIONS WITH THE WEST ALL IN ALL IT IS PART OF HIS LARGER THESIS THAT MR DENG WILL BE REMEMBERED BY HISTORY NOT AS THE BUTCHER OF BEIJING BUT AS THE ARCHITECT OF A MODERN CHINA FINALLY READY TO TAKE ITS PLACE IN THE COMMUNITY OF NATIONS AS MR OVERHOLT PUTS IT CONTEMPORARY CHINA IS NOT ANOTHER SOVIET UNION NOR THE TOTALITARIAN STATE THAT CHINA WAS IN 1966 BUT RATHER A GIGANTIC VINTAGE 1972 SOUTH KOREA CERTAINLY THERE EXIST MANY PARALLELS BACK IN 1972 NO ONE WAS CALLING PARK CHUNG HEE'S SOUTH KOREA A SUCCESS STORY LIKE CHINA TODAY SOUTH KOREA THEN HAD PUT ECONOMIC DEVELOPMENT BEFORE POLITICAL REFORM AND PARK WAS NOT SHY ABOUT DEALING WITH HIS OPPONENTS EIGHT YEARS LATER THE COUNTRY WOULD SUFFER ITS OWN TIANANMEN SQUARE IN THE AFTERMATH OF HIS ASSASSINATION WHEN AN UPRISING IN KWANGJU WAS BRUTALLY SUPPRESSED BY PARK'S SUCCESSOR CHUN DOO HWAN ALTHOUGH BOTH MEN CONTINUED SOUTH KOREA'S ECONOMIC DEVELOPMENT BOTH ALSO ENDURED A GENERATION OF BITTER WESTERN DENUNCIATIONS FOR NOT FOLLOWING THE INSTANTDEMOCRATIZATION MODELS THAT FAIL ELSEWHERE THE GENERAL POINT HERE IS THAT IF THE ASIAN EXPERIENCE HAS TAUGHT US ANYTHING IT IS THAT THE KEY DEBATE IS NOT BETWEEN DEMOCRACY AND DEVELOPMENT BUT WHICH PATH TO DEVELOPMENT WHAT KIND OF DEMOCRACY AND IN WHAT SEQUENCE HERE MR OVERHOLT'S CRITICISMS OF PRESIDENT CLINTON'S USE OF THE HUMANRIGHTS BLUDGEON ARE RIGHT ON TARGET FOR MR CLINTON'S ADMINISTRATION HAS COMPLETELY MISSED THE QUIET BUT STEADY REVOLUTION RESULTING FROM THE EMERGENCE OF A PRIVATE SECTOR WITH STRONG TIES OVERSEAS AND THE GROWTH OF A MIDDLE CLASS TO MOVE TO DEMOCRACY BEFORE THESE ARE IN PLACE DOES NOT SO MUCH LIBERALIZE THE POLITY AS POLITICIZE THE ECONOMY SO FAR SO GOOD INTELLECTUALS ALAS ARE INCLINED TO TAKE THEIR SIMILES TOO FAR AND IN MR OVERHOLT'S CASE IT LEADS TO A NUMBER OF BLIND SPOTS FOR HOWEVER MUCH THE CHINA OF 1993 RESEMBLES THE SOUTH KOREA OF 1972 THERE REMAIN SERIOUS DIFFERENCES DIFFERENCES THAT DISTURB NOT ONLY THE PEOPLE WHO WERE CARPING ABOUT SOUTH KOREA DURING THE '70S BUT ALSO THOSE WHO DEFENDED IT THESE DIFFERENCES GO WELL BEYOND SHEER SIZE TO THE DRAMATIC CONTRAST BETWEEN CHINA'S RELATIONSHIP TO THE WORLD IN GENERAL AND THE US IN PARTICULAR AND SOUTH KOREA'S THROUGHOUT ITS DEVELOPMENT SOUTH KOREA WHICH WAS NEVER A POWER WAS FAR MORE INTEGRATED WITH AMERICA THAN IS CHINA TODAY AND THE US WAS A TEMPERING INFLUENCE ON SEOUL'S BEHAVIOR FOR EXAMPLE IT WAS US INTERVENTION THAT SAVED THE LIFE OF KIM DAEJUNG UNFORTUNATELY WHILE MR OVERHOLT RIGHTLY EXCORIATES THE CLINTON ADMINISTRATION'S ASTOUNDING INABILITY TO DISTINGUISH BETWEEN A STRONG AMERICA AND A HECTORING AMERICA HIS DISGUST BLINDS HIM TO ANY FAULTS ON CHINA'S SIDE IT ALSO LEADS HIM TO SLAY STRAW DRAGONS WITH REGARD TO CRITICS OF CHINA'S HANDLING OF HONG KONG FOR EXAMPLE HE ATTACKS THEIR IMAGE OF A RADICAL COMMUNIST CHINA ITCHING TO IMPOSE ITS OWN SYSTEM ON HONG KONG THERE MAY BE THOSE WHO ARGUE THIS BUT THIS IS BY NO MEANS THE DEBATE IN HONG KONG THE MORE CRITICAL ARGUMENT IS WHETHER EVEN IN THE BEST OF CIRCUMSTANCES AND CONCEDING CHINA'S GOOD WILL CHINA IS CAPABLE OF RUNNING SOMETHING AS SOPHISTICATED AS HONG KONG WHETHER IT'S THE USE OF QUESTIONABLE STOCK LISTINGS THE THREAT OF CORRUPTION SPILLING OVER FROM THE MAINLAND OR SIMPLY CHINA'S WILLINGNESS TO DRIVE DOWN THE HANG SENG INDEX FOR POLITICAL PURPOSES THERE ARE MANY REASONS FOR HONG KONG BUSINESSMEN TO BE CONCERNED ABOUT 1997 AND BEIJING'S ONGOING EFFORT TO BRING ALL INDEPENDENT HONG KONG INSTITUTIONS TO HEEL MOST RECENTLY THE GENERAL CHAMBER OF COMMERCE SUGGESTS A REAL THREAT TO THE RULE OF LAW AS IT NOW EXISTS THERE MAY BE A CASE TO BE MADE FOR CHINA ON THESE AND RELATED ISSUES BUT MR OVERHOLT CANNOT MAKE THIS CASE BECAUSE HE WILL NOT ENTERTAIN THE QUESTIONS THE MOST HE CAN SAY CRITICAL OF CHINESE LEADERS IS THAT THEY ARE AT TIMES GUILTY OF OCCASIONAL BOUTS OF EXCESSIVE RHETORIC AND INSENSITIVITY ON MISSILE SALES WITHOUT A DOUBT THE RISE OF CHINA GOES A LONG WAY TOWARD REDRESSING SOME OF THE FUZZY WESTERN THINKING ABOUT CHINA'S DEVELOPMENT IF ONLY HE HADN'T GONE SO FAR MR MCGURN IS SENIOR EDITOR OF THE FAR EASTERN ECONOMIC REVIEW 9312130054 931213 BREAKTHROUGHS IN TRADE TALKS ARE ANNOUNCED GATT PROGRESS IS ACHIEVED AFTER CLINTON PHONES TOP EUROPEAN LEADERS BY ASRA Q NOMANI AND LAWRENCE INGRASSIA STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA IN A DAY OF HIGHS AND LOWS NEGOTIATORS AT THE WORLD TRADE TALKS HERE PAINTED A GLOOMY SCENARIO EARLY YESTERDAY ONLY TO ANNOUNCE A SERIES OF MAJOR BREAKTHROUGHS LATE LAST NIGHT RAISING HOPES FOR A SETTLEMENT THE UNEXPECTED TURN OF EVENTS MAY HAVE BEEN PROMPTED BY TELEPHONE CALLS MADE BY PRESIDENT CLINTON TO THREE EUROPEAN PRIME MINISTERS EDOUARD BALLADUR OF FRANCE HELMUT KOHL OF GERMANY AND JOHN MAJOR OF BRITAIN WITHIN HOURS A GATT OFFICIAL SAID THE LOGJAM STARTED TO BREAK UP NEGOTIATORS AGREED TO A NEW TOUGHER PROCEDURE FOR HANDLING COMPLAINTS ABOUT THE DUMPING OF GOODS AT UNFAIRLY LOW PRICES RESOLVED REMAINING DISPUTES OVER AGRICULTURE MOST IMPORTANTLY WINNING AGREEMENT FROM JAPAN TO OPEN ITS MARKET TO RICE IMPORTS AND AGREED TO REDUCTIONS IN TEXTILE QUOTAS OVER A 10YEAR PERIOD INSTEAD OF THE 15YEAR PERIOD SOUGHT BY US MANUFACTURERS THE GATT OFFICIAL SAID THERE WAS A REMARKABLE WILLINGNESS TO NEGOTIATE TONIGHT FOLLOWING THE TELEPHONE CALLS THE CONVERSATIONS WHICH WERE MADE AFTER THE TALKS ENDED ABOUT 8 PM GENEVA TIME LASTED ABOUT 15 MINUTES EACH THERE'S HUGE HOPE NOW SAID THE GENERAL AGREEMENT ON TARIFFS AND TRADE OFFICIAL AND RETURNING TO HIS HOTEL FROM TALKS THAT CONTINUED INTO THE EARLY HOURS MICKEY KANTOR US TRADE REPRESENTATIVE DECLARED WE'VE MADE GREAT PROGRESS THINGS ARE MOVING THOUGH SOME STICKY ISSUES REMAIN THE DIRECT INVOLVEMENT OF LEADERS OF THE MAJOR INDUSTRIALIZED COUNTRIES IN THE WEST COULD PROVIDE THE IMPETUS TO RESOLVE THEM AS WELL AS ENABLE THEM TO TAKE PERSONAL CREDIT FOR CLINCHING AN AGREEMENT IN TALKS THAT HAVE DRAGGED ON FOR SEVEN YEARS THE CONVERSATION BETWEEN PRESIDENT CLINTON AND MR BALLADUR WAS SEEN AS ESPECIALLY IMPORTANT BECAUSE DIFFERENCES BETWEEN THE US AND FRANCE HAVE BEEN ONE OF THE BIGGEST OBSTACLES FIRST OVER AGRICULTURE SUBSIDIES WHICH HAVE BEEN RESOLVED AND NOW OVER FRENCH QUOTAS ON MOVIES AND VIDEOS DIFFERENCES ALSO REMAIN OVER NEW RULES STRENGTHENING PATENT PROTECTION AND OTHER SOCALLED INTELLECTUAL PROPERTY RIGHTS AS WELL AS OVER SHIPPING IN ADDITION THE OPENING OF MARKETS FOR FINANCIAL SERVICES REMAINS A STICKING POINT ESPECIALLY BETWEEN THE US AND SOME DEVELOPING COUNTRIES FURTHER A BROAD AGREEMENT ON RULES GOVERNING SUBSIDIES DOESN'T YET INCLUDE AIRCRAFT SUBSIDIES THE CONVERSATIONS BETWEEN MR CLINTON AND THE EUROPEAN LEADERS COULD PROVE HELPFUL BECAUSE A USEC DISPUTE OVER AIRCRAFT SUBSIDIES HAS BEEN A LONGRUNNING SOURCE OF DISPUTE AT THE INSISTENCE OF US AIRCRAFT MANUFACTURERS AMERICAN NEGOTIATORS HAVE BEEN SEEKING TO RESTRICT EUROPEAN SUBSIDIES FOR AIRBUS INDUSTRIE A EUROPEAN AIRCRAFT CONSORTIUM BUT HAVE MET WIDESPREAD RESISTANCE FROM THE EUROPEANS STILL BY DAY'S END THE OVERALL NEWS WAS UPBEAT ONE MAJOR ISSUE LARGELY SETTLED WAS THE PROCEDURE FOR HANDLING COMPLAINTS ABOUT DUMPING OF GOODS THE RULES PROVIDE FOR TOUGHER AND QUICKER ACTION AGAINST DUMPING THROUGH THE GENERAL AGREEMENT ON TARIFFS AND TRADE ONLY JAPAN EXPRESSED SOME RESERVATION ABOUT THE NEW RULES AND THAT ISN'T CONSIDERED A SERIOUS OBSTACLE A GATT OFFICIAL SAID THE US HAS ARGUED THAT PAST GATT RULES HAVE TAKEN TOO LONG TO ENFORCE AND BEEN TOO LENIENT ON MISCREANTS BUT THE GATT OFFICIAL SAID THE NEW RULES ARE SUFFICIENTLY STRONG TO OVERCOME US FEARS JEFF GARTEN A COMMERCE DEPARTMENT UNDERSECRETARY WHO WAS THE CHIEF US NEGOTIATOR ON DUMPING SAID THAT THE AGREEMENT REMOVES A MAJOR QUESTION MARK THAT WAS HANGING OVER THE NEGOTIATIONS IN OTHER PROGRESS THE GATT OFFICIAL SAID NEGOTIATORS AGREED TO AN AGRICULTURE SETTLEMENT PERHAPS MOST IMPORTANT THE AGREEMENT INCLUDES A MAJOR CONCESSION BY JAPAN ON THE POLITICALLY SENSITIVE ISSUE OF RICE IMPORTS THOUGH IMPORTS HAVE LONG BEEN OPPOSED BY JAPAN'S POWERFUL RICE LOBBY THAT NATION'S NEGOTIATORS AGREED THAT JAPAN WOULD IMPORT 4 OF ITS RICE CONSUMPTION STARTING IN 1995 RISING TO 8 OVER A SIXYEAR PERIOD ADDITIONALLY NEGOTIATORS AGREED TO A REDUCTION IN IMPORT QUOTAS FOR TEXTILES OVER A 10YEAR PERIOD THIS IS ESPECIALLY IMPORTANT TO DEVELOPING COUNTRIES WHICH HAVE INSISTED ON THE OPENING OF MARKETS IN DEVELOPED COUNTRIES IN RETURN FOR MAKING CONCESSIONS ON OTHER TRADE ISSUES BUT THERE HAD BEEN WIDESPREAD FEARS THAT THE US WHICH HAS STRICT QUOTAS AND HIGH TARIFFS WOULD DEMAND A 15YEAR PERIOD BECAUSE OF PROMISES MADE BY PRESIDENT CLINTON TO WIN LAWMAKERS' VOTES NEEDED TO APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT AS A RESULT THE TEXTILE LOBBY IS ALMOST CERTAIN TO FEEL BETRAYED AND WILL OPPOSE THE GATT AGREEMENT MR CLINTON AND EUROPEAN LEADERS TALKED AFTER PRODDING BY PETER SUTHERLAND DIRECTOR GENERAL OF GATT INDEED SIR LEON BRITTAN HEAD OF THE EC DELEGATION EXPRESSED DEEP PESSIMISM EARLY YESTERDAY MORNING AS HE WAS LEAVING HIS HOTEL TO MEET WITH MR SUTHERLAND WE HAVE VERY SEVERE PROBLEMS AT THE MOMENT SIR LEON SAID THINGS ARE NOT LOOKING GOOD I THINK WE HAVE A BIT OF A CRISIS ON OUR HANDS BLAMING USEUROPEAN COMMUNITY BILATERAL DISPUTES FOR THE DELAYS MR SUTHERLAND SAID LEADERS FROM BOTH SIDES HAVE A PARTICULAR COMMITMENT TO SEE THESE NEGOTIATIONS COMPLETED HE ADDED I BELIEVE WE ARE IN SIGHT OF A DEAL BUT FOR NEGOTIATORS TO TAKE THE FINAL STEPS POLITICAL LEADERSHIP AT THE HIGHEST LEVEL IN THE EUROPEAN COMMUNITY AND THE US IN PARTICULAR IS NOW CRUCIAL AND URGENT EVEN AT THAT POINT HOWEVER MR SUTHERLAND WAS SAYING THAT NEGOTIATORS WERE TANTALIZINGLY CLOSE TO COMPLETING A TRADE PACT MR SUTHERLAND IS PUSHING THE VARIOUS SIDES TO WRAP UP THEIR TALKS BY MIDNIGHT WEDNESDAY EST THE LAST DAY BY WHICH MR CLINTON CAN STILL GET SOCALLED FAST TRACK AUTHORITY THAT ALLOWS HIM TO SUBMIT TRADE LEGISLATION TO CONGRESS WITHOUT THE RISK OF ADDEDON AMENDMENTS THE 115 NATIONS NEGOTIATING THE PACT ARE STRUGGLING TO ASSEMBLE ABOUT 40 TEXTS GOVERNING TRADE PROCEDURES RANGING FROM RULES GOVERNING INVESTMENTS TO CUSTOMS VALUATION TO IMPORT LICENSING BEFORE THE DEADLINE ABOUT 80 HAVE BEEN RESOLVED THE GATT OFFICIAL SAID THOUGH THE PROBLEMS THAT REMAIN MOSTLY INVOLVE MAJOR ISSUES IN BRUSSELS EC LEADERS MAINTAINED THE COMMUNITY'S TOUGH STANCE WITH THE US OVER TRADE IN FILMS AND TELEVISION PROGRAMS DEMANDING THAT THE AUDIOVISUAL SECTOR BE GIVEN EXCEPTIONAL AND SEPARATE TREATMENT IN ANY GATT DEAL THE STAND WAS PUSHED BY FRANCE WHICH WAS SEEKING TO AVOID HAVING SIR LEON MAKE CONCESSIONS TO WASHINGTON IN TOWN TO LOBBY JACK VALENTI PRESIDENT OF THE MOTION PICTURE ASSOCIATION REFUTED EC STATEMENTS THAT US NEGOTIATORS HAD DUG IN THEIR HEELS TOO HARD FOR HOLLYWOOD I'VE GOT NEWS FOR YOU HE SAID IT AIN'T US BRINGING THIS DOWN BHUSHAN BAHREE ALSO CONTRIBUTED TO THIS ARTICLE 9312130053 931213 CREDIT RATINGS FIRST CHICAGO CORP CHICAGO MOODY'S INVESTORS SERVICE INC SAID IT RAISED THIS BANK COMPANY'S SENIOR DEBT RATING TO SINGLEA3 FROM BAA1 AND SUBORDINATED DEBT RATING TO BAA1 FROM BAA2 ABOUT 57 BILLION OF DEBT IS AFFECTED MOODY'S SAID THE RATINGS CHANGE REFLECTS SIGNIFICANT IMPROVEMENT IN TWO OF THE COMPANY'S THREE CORE BUSINESSES WHOLESALE AND MIDDLEMARKET LENDING THE MOVE ALSO REFLECTS FIRST CHICAGO'S AGGRESSIVE DISPOSITION OF COMMERCIAL REALESTATE ASSETS MOODY'S SAID SAHARA GAMING CORP'S LAS VEGAS STANDARD & POOR'S CORP RAISED ITS RATINGS ON SUBORDINATED DEBT OF THIS HOTEL AND GAMING CONCERN TO TRIPLEC FROM TRIPLECMINUS AND ITS IMPLIED SENIOR RATING TO SINGLEBMINUS FROM TRIPLECPLUS IN ADDITION S&P RAISED ITS RATING ON THE COMPANY'S PIONEER FINANCE CORP UNIT'S FIRST MORTGAGE BONDS TO SINGLEBMINUS FROM TRIPLECPLUS ABOUT 116 MILLION OF DEBT IS AFFECTED S&P SAID THE RATINGS OUTLOOK FOR THE COMPANY IS STABLE 9312130052 931213 SMALL STOCK FOCUS INVESTORS COMB NEWISSUE LIST SEEKING VALUE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL BELIEVE IT OR NOT THERE'S A PLACE IN THE SIZZLING AND SPECULATIVE NEWISSUES MARKET FOR SEDATE CONSERVATIVE VALUE INVESTORS ALTHOUGH THE IDEA OF A VALUE INITIAL PUBLIC OFFERING STRIKES MANY AS AN OXYMORON INVESTORS WITH A PENCHANT FOR CHEAP STOCKS INSIST THERE ARE GOOD BUYS AMONG ALL THE HOOPLA SURROUNDING IPOS BUT FINDING THEM IS FAR FROM EASY OUT OF 32 PROSPECTUSES ON MY DESK THERE IS ONLY ONE THAT I'D CONSTRUE AS A VALUE DEAL SAYS DAVID DIAMOND WHO RUNS A SMALLCAP FUND FOR INSTITUTIONAL INVESTORS AT BOSTON CO THERE'S A LOT OF JUNK AND OVERVALUE OUT THERE WITH EVERYBODY TRYING TO PUSH OUT PRODUCT AT THE END OF THE YEAR VALUE INVESTORS GENERALLY FAVOR STOCKS THAT ARE CHEAP COMPARED WITH CORPORATE ASSETS THEIR EQUITY SELECTION PROCESS TYPICALLY PIVOTS ON A COMPARISON OF A COMPANY'S STOCK PRICE WITH ITS BOOK VALUE ON A PERSHARE BASIS WHICH CAN BE TALLIED USING THE BALANCE SHEET IN A COMPANY'S ANNUAL REPORT ONE EXAMPLE MR DIAMOND CITES AS A STRONG VALUE PLAY IN TERMS OF PRICETOBOOK IS ASTORIA FINANCIAL A NEW YORKBASED THRIFT THAT WENT PUBLIC NOV 18 AT 25 JUMPED TO 30 THE FIRST DAY AND NOW TRADES AT 28 ON NASDAQ ITS ASSET QUALITY IS VERY GOOD AND IT SEEMS TO BE RIPE FOR A TAKEOVER HE ADDS THE BOSTON CO VICE PRESIDENT ALSO LIKES AMWAY ASIA PACIFIC AN IPO SCHEDULED TO BE PRICED THIS WEEK THROUGH LEAD UNDERWRITER MERRILL LYNCH AND COMANAGERS JP MORGAN AND SALOMON BROTHERS HE SAYS THAT AT 17 A SHARE THE MIDPOINT OF THE 16 AND 18 OFFERING RANGE THE STOCK OF THE INTERNATIONAL CONSUMER PRODUCTS DISTRIBUTOR WOULD TRADE AT A MULTIPLE OF 121 TIMES HIS EXPECTATIONS FOR 1994 EARNINGS OR WELL BELOW AN AVERAGE 149 TIMES FOR COMPARABLE PROVIDERS OF HOUSEHOLD GOODS THE STOCK IS CHEAP ON A PRICETOEARNINGS BASIS HE SAYS ADDING THAT THE COMPANY WHICH WILL BE LISTED ON THE NEW YORK STOCK EXCHANGE HAS POSTED COMPOUND ANNUAL GROWTH OF 32 IN SALES AND 34 IN NET INCOME OVER THE PAST FIVE YEARS MOREOVER HE THINKS THE GROUP WILL BE ABLE TO TAP INTO THE VAST CHINESE MARKET BY MID1995 OTHER MARKET PROS EXTEND THE MEANING OF VALUE TO SUGGEST LOW PRICETOEARNINGS AND PRICETOCASHFLOW RATIOS OR MORE BROADLY A CATEGORY THAT INCLUDES DISTINCTLY UNGLAMOROUS STOCKS WITH GOOD MANAGEMENT AND LOTS OF LONGTERM PROMISE HERE TOO THE IPO PIPELINE HAS PROVED LESS THAN A CORNUCOPIA NOTES VETERAN VALUE INVESTOR SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON ALMOST EVERYTHING THAT COMES OUT THESE DAYS IS AT AN ENORMOUS PREMIUM TO BOOK OR AT BIG DOUBLEDIGIT P/E RATIOS WITHIN THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES THE 1993 AVERAGE PRICETOEARNINGS MULTIPLE WAS 176 AS OF NOV 30 THE AVERAGE PRICETOBOOK RATIO WAS 219 FOR THE SAME PERIOD THE INDEX COMPRISES A PORTFOLIO OF 1976 STOCKS WITH AN AVERAGE MARKET CAPITALIZATION OF 205 MILLION CHARLES RONSON AN ANALYST AT BALESTRA CAPITAL IN NEW YORK AND PUBLISHER OF THE IPO VALUE MONITOR DOESN'T SEE ANY TRUE VALUE BUYS IN THE OFFING EITHER BUT A FEW RECENT OFFERINGS HE ASSERTS HAVE POTENTIAL SPECULATING ON SUCH OBVIOUSLY HOT OVERSUBSCRIBED IPOS SUCH AS RECENT HIGHFLIER BOSTON CHICKEN IS MINDLESS THAT'S NOT WHERE THE INTELLECTUAL FUN IS HE SAYS THREE RECENT IPOS THAT SHOW UP AS BUYS BUT NOT SCREAMING BUYS ON HIS RADAR ARE WELBILT A MAKER OF COMMERCIAL KITCHEN EQUIPMENT AND A PLAY ON THE GLOBAL FASTFOOD INDUSTRY THAT WAS PRICED AT 18 ON NOV 17 OM GROUP A CHEMICAL MANUFACTURER SPECIALIZING IN COBALTBASED PRODUCTS THAT WAS PRICED AT 14 ON OCT 12 AND PACTEL A WIRELESS COMMUNICATIONS SPINOFF OF PACIFIC TELESIS THAT WAS PRICED AT 23 EARLIER THIS MONTH ON FRIDAY WELBILT CLOSED AT 18 1/2 UP 3/4 OM GROUP GAINED 1/4 TO 19 1/2 AND PACTEL FELL 1/2 TO 25 1/2 TONY HITSCHLER PRESIDENT OF BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL SAYS HIS GROUP HAS BEEN MORE AND MORE RELUCTANT TO PARTICIPATE IN IPOS BECAUSE OF WHAT IT SEES AS A DIMUNITION OF QUALITY IN TERMS OF KEY TRAILING INDEXES PRICETOBOOK PRICETOEARNINGS AND PRICETOCASHFLOW RATIOS MR HITSCHLER SAYS THAT INVESTORS CAN FIND A FEW JUICY BITS AMONG RECENT FINANCIALSECTOR IPOS BUT ADDS THAT TODAY'S MENU PALES IN TERMS OF QUALITY IN COMPARISON WITH WHAT WAS COMING TO MARKET A FEW YEARS AGO TWO YEARS AGO IT WAS THE EQUIVALENT OF SHOOTING FISH IN BARREL BUT TWO YEARS AGO IT WAS MUCH HARDER TO BRING AN IPO THAN IT IS NOW HE SAYS HE LIKES PAUL REVERE CORP A INDIVIDUALDISABILITY INSURANCE COMPANY BASED IN WORCESTER MASS ITS P/E AND PRICETOBOOK MEET OUR CRITERIA ITS BOOK VALUE IS AROUND 24 A SHARE AND IT WENT PUBLIC AT 25 A SHARE IN OCTOBER HE SAYS THE BRANDYWINE ASSET MANAGER NOTES THAT THE AVERAGE SHARE PRICE VALUATION FOR THE LIFE INSURANCE INDUSTRY IS BETWEEN 15 TO 2 TIMES BOOK VALUE PAUL REVERE CLOSED FRIDAY AT 24 5/8 ON THE BIG BOARD OFF ITS RECENT HIGH OF 26 MR HITSCHLER ALSO FAVORS PROPERTYCASUALTY INSURER TIG HOLDINGS ON SIMILAR GROUNDS THE STOCK WAS PRICED AT 22 5/8 ON APRIL 20 AND NOW TRADES AT 21 3/8 IT'S STILL AT A VERY CHEAP PRICE IN RELATION TO CURRENT BOOK VALUE OF AROUND 20 A SHARE AND TO ITS EARNINGS POTENTIAL WHAT'S MORE HE NOTES KEY COMPANY OFFICIALS HAD BOUGHT INTO THE IPO AT THE SAME PRICE AS OUTSIDE INVESTORS WE LIKE THAT VERY MUCH WE'RE IN IT FOR THE LONGER TERM SMALL STOCKS SAGGED EVEN AS THE DOW JONES INDUSTRIAL AVERAGE POWERED TO ANOTHER RECORD THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES LOST 059 POINT TO END AT 25281 THE NASDAQ COMPOSITE INDEX FELL FOR THE FIFTH STRAIGHT DAY DROPPING 075 POINT TO 76074 ADVANCING NASDAQ ISSUES OUTPACED DECLINERS 1496 TO 1454 NASDAQ NATIONAL MARKET VOLUME TOTALED 3083 MILLION SHARES DOWN FROM 3028 MILLION THURSDAY FOR THE WEEK THE RUSSELL 2000 LOST 041 AND THE NASDAQ COMPOSITE INDEX 149 KURZWEIL APPLIED INTELLIGENCE TUMBLED 5 1/2 TO 15 THE MAKER OF SPEECHRECOGNITION SYSTEMS REPORTED LATE THURSDAY THAT THIRDQUARTER PROFIT WAS TWO CENTS A SHARE SIGNIFICANTLY BELOW ANALYSTS' FORECASTS OF EIGHT CENTS TO NINE CENTS LTX CORP SANK 7/8 TO 4 EVEN AS THE SEMICONDUCTOR AND NETWORKING CONCERN SAID ITS FISCAL FIRSTQUARTER LOSS NARROWED TO SIX CENTS A SHARE FROM THE 14 CENTS A SHARE REPORTED A YEAR EARLIER SEPARATELY LTX SAID IT HAD WITHDRAWN ITS REGISTRATION STATEMENT FOR A PROPOSED PUBLIC OFFERING OF 53 MILLION COMMON SHARES SAYING THE STOCK PRICE DECLINED SUBSTANTIALLY FROM THE TIME WE FILED THE ORIGINAL OFFER MEDIMMUNE SLIPPED 2 TO 10 3/4 THE COMPANY CONFIRMED THAT LAWSUITS HAVE BEEN FILED AGAINST IT AND SOME OF ITS OFFICERS AND DIRECTORS FOLLOWING A DEC 2 MEETING OF A FOOD AND DRUG ADMINISTRATION PANEL THAT LED TO A SHARP DROP IN THE COMPANY'S STOCK PRICE AT THE DEC 2 MEETING MEDIMMUNE'S RESPIGAM DRUG RECEIVED AN UNFAVORABLE REVIEW US LONG DISTANCE SLID 4 TO 13 1/2 THE COMPANY SAID IT IS DELAYING ITS PROPOSED OFFERING OF 16 MILLION COMMON SHARES AFTER IT LEARNED THAT THE SECURITIES AND EXCHANGE COMMISSION WAS CONDUCTING AN INFORMAL INQUIRY OF AN UNKNOWN NATURE PACIFIC NUCLEAR SYSTEMS ADDED 3/4 TO 8 3/4 PIPER JAFFRAY INITIATED COVERAGE OF THE STOCK WITH A BUY RATING CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9312130051 931213 INVESTMENT APPEAL OF THE PHILIPPINES IS GROWING IN US BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA ELLIOT RICHARDSON THE TOP US OFFICIAL COORDINATING AID TO THE PHILIPPINES SAYS THAT THE COUNTRY IS STARTING TO LOOK MORE ATTRACTIVE TO FOREIGN INVESTORS BUT THAT MANILA NEEDS TO WORK MUCH HARDER TO WOO THEM MR RICHARDSON CURRENTLY LEADING A GROUP OF US BUSINESS EXECUTIVES VISITING THE PHILIPPINES SAID IN AN INTERVIEW THAT PERCEPTIONS OF THE COUNTRY AS A POLITICALLY UNSTABLE NATION WITH DEFICIENT INFRASTRUCTURE HAVE BEGUN TO FADE ALLOWING ITS ADVANTAGES TO BECOME MORE APPARENT THE CHANGE HERE IS MOSTLY ATMOSPHERIC THE MOST IMPORTANT CHANGE IS THE RECEDING OF THE NEGATIVES HE SAID LAST YEAR'S PEACEFUL TRANSITION OF POWER TO PRESIDENT FIDEL RAMOS AND A GROWING CONSENSUS ON ECONOMIC REFORM HE SAID MAKE HIM UPBEAT ABOUT THE COUNTRY'S PROSPECTS MY OWN BET IS THIS IS A REAL TURNING POINT HE SAID HOWEVER HE ADDED THAT PHILIPPINE OFFICIALS AREN'T TAKING FULL ADVANTAGE OF THE IMPROVED CLIMATE AMONG BUSINESS PEOPLE ALMOST ALL THE HUSTLE THERE HAS BEEN RAMOS HIMSELF AND THE EMPLOYMENT OF AN ADVERTISING FIRM IN THE US MR RICHARDSON SAID I'VE BEEN SAYING AGAIN AND AGAIN AND AGAIN YOU'VE GOT TO TARGET PARTICULAR COMPANIES HE SAID US COMPANIES THAT HAVE LONG DISCOUNTED THE PHILIPPINES AS A POTENTIAL INVESTMENT SITE ARE READY TO LISTEN NOW MR RICHARDSON LISTED THE PHILIPPINES' EDUCATED ENGLISHSPEAKING WORK FORCE LOW WAGES AND STRATEGIC LOCATION AS CHIEF ATTRACTIONS FOR INVESTORS AT THE SAME TIME HE SAID MANILA NEEDS TO AGREE QUICKLY ON AN ECONOMIC PROGRAM WITH THE INTERNATIONAL MONETARY FUND AS WELL AS IMPROVE ITS REVENUE COLLECTION WITHOUT THE IMF'S SEAL OF GOOD HOUSEKEEPING THE PHILIPPINES HAS BEEN UNABLE TO RESCHEDULE SOME OF ITS FOREIGN DEBT FOREIGN GOVERNMENTS HAVE ALSO BEEN UNWILLING TO EXTEND NEW CONCESSIONARY LOANS TO MANILA IN THE ABSENCE OF AN IMF PROGRAM IN ADDITION A SEVERE REVENUE SHORTFALL THIS YEAR HAS HOBBLED THE ADMINISTRATION'S HOPE OF BOLSTERING THE ECONOMY WITH SPENDING ON NEEDED INFRASTRUCTURE PROJECTS MR RICHARDSON IS PRESIDENT CLINTON'S SPECIAL REPRESENTATIVE TO THE MULTILATERAL AID INITIATIVE OR MAI A GROUP OF DONOR COUNTRIES THAT WASHINGTON ORGANIZED IN 1989 TO BOOST AID TO THE RECENTLY RESTORED DEMOCRACY LED BY THENPRESIDENT CORAZON AQUINO SINCE THE LAUNCH OF THE MAI HOWEVER US AID TO MANILA HAS FALLEN STEADILY A CASUALTY OF US BUDGET DEFICITS THE CLOSURE OF US MILITARY BASES IN THE PHILIPPINES AND COMPETING AID REQUESTS FROM EASTERN EUROPE AND THE FORMER SOVIET UNION THOUGH WASHINGTON PLEDGED TO CONTRIBUTE 200 MILLION A YEAR FOR FIVE YEARS WHEN THE MAI WAS LAUNCHED FUNDING FOR THE PROGRAM IN THE YEAR THAT BEGAN OCT 1 WILL BE JUST 40 MILLION MR RICHARDSON SAID HE EXPECTED TOTAL US ASSISTANCE FOR THE PHILIPPINES INCLUDING APPROPRIATIONS FOR THE MAI TO REACH ABOUT 70 MILLION DURING THE CURRENT YEAR AGAINST ABOUT 157 MILLION THE PREVIOUS YEAR HE SAID HE WAS DISAPPOINTED BY THE SUM BUT NOTED THAT WASHINGTON HAS SO FAR PROVIDED 438 MILLION MOSTLY IN GRANTS UNDER THE MAI THE PROGRAM HAS GENERATED 85 BILLION FROM ALL SOURCES OF WHICH ABOUT 3 BILLION STILL HASN'T BEEN SPENT HE ADDED 9312130050 931213 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ARGYLE TELEVISION OPERATIONS INC 150 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 30 2003 PRICED AT PAR TO YIELD 9875 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP BURLINGTON NORTHERN RAILROAD 1109 MILLION OF PASSTHROUGH CERTIFICATES PRICED AT PAR TO YIELD 632 ACCORDING TO MCM CORPORATEWATCH THE OFFERING HAS AN AVERAGE LIFE OF 108 YEARS THE PRICING TERMS REFLECT A SPREAD OF 65 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BURLINGTON NORTHERN RAILROAD IS A UNIT OF BURLINGTON NORTHERN INC COLOR TILE INC 200 MILLION OF SENIOR NOTES DUE DEC 15 2001 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO NEW YORK LIFE INSURANCE CO 450 MILLION TWOPART DEBT OFFERING IN THE 144A PRIVATEPLACEMENT MARKET THE FIRST TRANCHE 150 MILLION OF SURPLUS NOTES DUE DEC 15 2003 WAS PRICED AS 64S AT A DISCOUNT TO YIELD 6405 THE NONCALLABLE DEBT WAS PRICED 73 BASIS POINTS OVER TREASURYS THE SECOND TRANCHE 300 MILLION OF SURPLUS NOTES DUE DEC 15 2023 WAS PRICED AS 75S AT A DISCOUNT TO YIELD 7523 THE DEBT WHICH IS NONCALLABLE FOR 10 YEARS WAS PRICED 120 BASIS POINTS OVER TREASURYS BOTH TRANCHES ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE DEBT WAS SOLD THROUGH FIRMS LED BY GOLDMAN SACHS & CO PULTE CORP 100 MILLION OF NOTES DUE DEC 15 2003 PRICED AS 7S AT 996 TO YIELD 7056 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 140 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CAMCO INTERNATIONAL INC INITIAL PUBLIC OFFERING OF 138 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY LAZARD FRERES & CO OF THE TOTAL OFFERING 11 MILLION SHARES ARE BEING OFFERED IN THE US AND CANADA AND THE REMAINDER ELSEWHERE CAMCO IS AN AFFILIATE OF PEARSON PLC INLAND STEEL INDUSTRIES INC FIVE MILLION COMMON SHARES PRICED AT 3225 APIECE ACCORDING TO THE COMPANY THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FOUR MILLION SHARES ARE BEING OFFERED IN THE US WITH THE REMAINDER OFFERED ABROAD OHM CORP THREE MILLION COMMON SHARES OFFERED AT 11 APIECE ACCORDING TO THE COMPANY THROUGH LEAD UNDERWRITER LEHMAN BROTHERS INC SHAW GROUP INC INITIAL PUBLIC OFFERING OF 3125000 SHARES AT 1450 APIECE THROUGH LEAD UNDERWRITER SMITH BARNEY SHEARSON INC FEDERAL HOME LOAN MORTGAGE CORP 3031 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1656 IS BACKED BY CLASSES FROM THE AGENCY'S REMIC 1622A WHICH WAS BACKED BY 30YEAR 625 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1657 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS CREDIT NATIONAL SA FRANCE 300 MILLION FRENCH FRANCS OF 575 EUROBONDS DUE JAN 3 2002 AT ISSUE AND FIXED REOFFER PRICE 99812 VIA CREDIT LYONNAIS INVESTOR HAS OPTION OF REINVESTING PAID INTEREST ON COUPON DATE INTO NEW BONDS FROM ISSUER AT PAR AT FIXED REOFFER PRICE BONDS YIELD 578 A MARGIN OF 14 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 035 KOMMUNEKREDIT DANISH AGENCY 100 MILLION OF FLOATINGRATE EURONOTES DUE JAN 19 1999 AT ISSUE AND FIXED REOFFER PRICE 10082 VIA SAKURA FINANCE INTERNATIONAL LTD INTEREST PAID SEMIANUALLY FLOATING 125 BASIS POINTS OVER SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS FEES 02 LAI FUNG OVERSEAS FINANCE LTD HONG KONG PARENT 150 MILLION CALLABLE CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO FOR FIRST YEAR BONDS PAY A COUPON OF 525 FOR THE SECOND YEAR 55 AND THEREAFTER 575 BONDS CONVERTIBLE INTO AN INITIAL PUBLIC OFFERING OF ORDINARY SHARES OF LAI SUN DEVELOPMENT LTD'S CHINESE PROPERTY ASSETS IF IPO DOESN'T OCCUR WITHIN FOUR YEARS BONDS WILL BE CALLED AT 112 TO YIELD 82 ANY OUTSTANDING BONDS CALLED AT PAR THREE YEARS AFTER AN IPO GUARANTOR LAI SUN DEVELOPMENT FEES UNDISCLOSED MAZDA MOTOR CORP JAPAN 20 BILLION YEN OF 405 EUROBONDS DUE DEC 21 2001 AT ISSUE PRICE 10185 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 100175 TO YIELD 402 FEES TWO MAZDA MOTOR CORP JAPAN 10 BILLION YEN OF 405 EUROBONDS DUE MAR 28 2002 AT ISSUE PRICE 1017 VIA DAIWA EUROPE LTD REOFFERED AT 1002 TO YIELD 402 FEES TWO RABOBANK NEDERLAND NETHERLANDS 150 MILLION MARKS OF RESET EURONOTES DUE JAN 11 1999 ISSUED AT 1022 AND REOFFERED AT 9995 VIA MORGAN STANLEY GMBH FOR FIRST YEAR BONDS PAY FIXED COUPON OF 5625 THEREAFTER COUPON RESET UNTIL MATURITY AT 24375 MINUS FOUR TIMES FOURYEAR MARK SWAP RATE MINIMUM COUPON 0 FEES TWO REPUBLIC OF IRELAND SOVEREIGN 10 BILLION YEN OF 375 EUROBONDS DUE JAN 14 2004 ISSUED AND REOFFERED 1001 VIA LEAD UNDERWRITER DAIWA EUROPE AT REOFFER BONDS YIELD 28 BASIS POINTS OVER COMPARABLE JAPANESE GOVERNMENT BOND FEES 0325 SALOMON INC US 100 MILLION OF 775 EUROBONDS DUE JAN 14 2004 AT ISSUE AND FIXED REOFFER PRICE 99623 VIA SALOMON BROTHERS INTERNATIONAL AT FIXED REOFFER PRICE BONDS YIELD 7806 A SPREAD OF 130 BASIS POINTS OVER COMPARABLE BRITISH GILT FEES 0375 SOCIETE GENERALE FRANCE 200 MILLION OF STEPUP CALLABLE FLOATINGRATE NOTES DUE DECEMEBER 2008 ISSUED AND REOFFERED AT 9935 VIA LEAD UNDERWRITER LEHMAN BROTHERS INTERNATIONAL COUPON FOR FIRST 10 YEARS IS THREEMONTH LIBOR PLUS 50 BASIS POINTS AND FOR NEXT FIVE YEARS THREEMONTH LIBOR PLUS 125 BASIS POINTS CALLABLE IN YEAR 10 AT PAR FEES 075 INTEREST PAID QUARTERLY TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 100 MILLION MARKS OF RESET EURONOTES DUE JAN 13 1999 ISSUED AT 10215 AND REOFFERED AT 999 VIA MORGAN STANLEY GMBH FOR FIRST YEAR NOTES CARRY COUPON OF 575 THEREAFTER COUPON RESET AT 25 MINUS FOUR TIMES FIVEYEAR MARK SWAP RATE COUPON FIXED ONCE ONLY UNTIL MATURITY FEES TWO UNIBANCO LEASING SAARRENDAMENTO MERCANTIL BRAZILIAN PARENT 50 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE DECEMBER 1996 ISSUED AND REOFFERED AT PAR VIA CHEMICAL INVESTMENT BANK LTD AND UNIBANCO SA GRAND CAYMAN BRANCH INTEREST PAID SEMIANNUALLY FLOATING 390 BASIS POINTS OVER LIBOR MINIMUM COUPON 4 AND MAXIMUM 6 FEES ONE 9312130049 931213 BUSINESS BRIEF NAHAMA & WEAGANT ENERGY CO ALEXANDER ENERGY MERGER IS ENTERING ITS FINAL STAGE NAHAMA & WEAGANT ENERGY CO BAKERSFIELD CALIF AND ALEXANDER ENERGY CO SAID THEY WILL MERGE CREATING A COMPANY WITH 107 BILLION CUBIC FEET OF NATURAL GAS EQUIVALENTS IN 1992 NAHAMA EARNED 779000 OR 16 CENTS A SHARE ON REVENUE OF 56 MILLION OKLAHOMA CITYBASED ALEXANDER ENERGY EARNED 394000 OR 11 CENTS A SHARE ON REVENUE OF 104 MILLION BOB G ALEXANDER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALEXANDER ENERGY SAID THE COMPANIES AGREED TO MERGE TO ATTRACT MORE INSTITUTIONAL INVESTORS AND TO LOWER CAPITAL COSTS UPON COMPLETION OF AN AGREEMENT BOTH COMPANIES WILL BE WHOLLY OWNED SUBSIDIARIES OF A HOLDING COMPANY FORMED AS PART OF THE MERGER SHAREHOLDERS OF EACH COMPANY WILL RECEIVE ONE SHARE IN THE NEW ENTITY FOR EACH OF THE MERGING COMPANIES' SHARES ON NEWS OF THE MERGER PLAN WHICH IS SUBJECT TO APPROVALS OF BOTH COMPANIES' BOARDS AND SHAREHOLDERS NAHAMA SHARES WERE UNCHANGED AT 4875 AND ALEXANDER ENERGY'S STOCK WAS DOWN 125 CENTS TO 5125 IN FRIDAY NASDAQ STOCK MARKET TRADING 9312130048 931213 WHO'S NEWS CONSOLIDATED NEVADA GOLDFIELDS CORP CONSOLIDATED NEVADA GOLDFIELDS CORP DENVER M NORMAN ANDERSON AND JAMES M BISHOP WERE NAMED DIRECTORS OF THIS MINERAL MINING COMPANY INCREASING THE BOARD'S MEMBERSHIP TO EIGHT MR ANDERSON IS PRESIDENT OF ANDERSON & ASSOCIATES A MANAGEMENT CONSULTING FIRM AND MR BISHOP IS CHAIRMAN AND FOUNDER OF CAITHNESS RESOURCES INC 9312130046 931213 BUSINESS BRIEF CCA INDUSTRIES INC CONCERN TO POST SHARP RISE IN PERSHARE PROFIT FOR PERIOD CCA INDUSTRIES INC EAST RUTHERFORD NJ SAID IT EXPECTS TO REPORT EARNINGS DOUBLED TO 10 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER FROM A YEAR EARLIER THE HEALTHAID AND BEAUTYAID MAKER WHICH WILL RELEASE ITS RESULTS IN EARLY JANUARY SAID IT EXPECTS TO REPORT REVENUE FOR THE FOURTH QUARTER QUARTER TOTALED 128 MILLION UP FROM 77 MILLION IN 1992 AND 1993 REVENUE TOTALED ABOUT 445 MILLION COMPARED WITH 270 MILLION A YEAR EARLIER IN TRADING FRIDAY ON THE NASDAQ STOCK MARKET CCA SHARES CLOSED AT 7875 UP 375 CENTS OR 5 9312130044 931213 WHAT'S NEWS BUSINESS AND FINANCE TRADE NEGOTIATORS ANNOUNCED A SERIES OF MAJOR BREAKTHROUGHS LATE LAST NIGHT RAISING HOPES FOR A SETTLEMENT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE HOURS AFTER CLINTON PHONED THE PRIME MINISTERS OF FRANCE GERMANY AND BRITAIN NEGOTIATORS AGREED TO A NEW TOUGHER PROCEDURE FOR HANDLING COMPLAINTS ABOUT THE DUMPING OF GOODS AT UNFAIRLY LOW PRICES AND RESOLVED REMAINING DISPUTES OVER AGRICULTURE IBM TENTATIVELY AGREED TO SELL ITS FEDERAL SYSTEMS UNIT TO LORAL IN A DEAL VALUED AT NEARLY 15 BILLION THE PURCHASE WOULD BOOST THE DEFENSEELECTRONICS FIRM TO A LEADING ROLE IN KEY DEFENSE AND NONDEFENSE MARKETS PARAMOUNT'S CHAIRMAN IS EXPECTED TO ARGUE AT A BOARD MEETING TODAY AGAINST THE FORMATION OF A PANEL OF OUTSIDE DIRECTORS WHO WOULD BE AIDED BY NEW LAWYERS AND INVESTMENT BANKERS TO WEIGH OFFERS FROM VIACOM AND QVC DELAWARE'S SUPREME COURT RULED THAT BOTH BIDS MUST BE CONSIDERED EQUALLY THE DELAWARE RULING IS LIKELY TO SPARK LEGAL BATTLES OVER WHAT CIRCUMSTANCES BRING ABOUT A CHANGE OF CONTROL AT A COMPANY AFTER A MERGER SOME TAKEOVER SPECIALISTS SAID CONSUMER PRICES INCHED UP 02 IN NOVEMBER WITH THE RISE RESTRAINED BY A 13 DROP IN ENERGY PRICES INFLATION SLOWED TO A 28 ANNUAL RATE IN THE FIRST 11 MONTHS COMPARED WITH A 29 RATE IN THE YEAREARLIER PERIOD AT&T IS SETTING UP FOREIGN UNITS WITH THEIR OWN CHIEF EXECUTIVES TO PURSUE THE POTENTIALLY HUGE NEW MARKETS IN ASIA EUROPE AND LATIN AMERICA AMID SLOW GROWTH IN THE US NYNEX IS CONSIDERING CUTTING 22000 JOBS OR ABOUT ONETHIRD OF ITS WORK FORCE OVER THE NEXT THREE YEARS A BROAD RANGE OF RETAILERS ARE SHOWING MODERATETOSTRONG SALES GAINS OVER LAST YEAR DRIVEN LARGELY BY SHOPPERS BUYING GIFTS FOR THE HOME TWENTYEIGHT MAJOR COMPANIES PLAN TO ANNOUNCE TODAY THAT THEY WILL JOIN TO FIND WAYS OF SETTING UP AN ELECTRONIC HIGHWAY THAT WILL BE EASY TO BOTH USE AND NAVIGATE IBM AT&T APPLE CITICORP BELLSOUTH AND HEWLETTPACKARD ARE PARTICIPATING SALES OF APPLE'S NEWTON HANDHELD COMPUTER HAVE SLOWED CONSIDERABLY ACCORDING TO DISTRIBUTORS AND STORES PLANS FOR MUNICIPAL UNDERWRITERS TO LIMIT CAMPAIGN CONTRIBUTIONS ARE RUNNING INTO STIFF RESISTANCE FROM SOME INFLUENTIAL ORGANIZATIONS REPRESENTING LOCALGOVERNMENT OFFICIALS JAPAN SAID ITS ECONOMY GREW AT A 2 ANNUAL RATE IN THE LATEST QUARTER A SURPRISE TO JAPAN'S BUSINESS WORLD BUT THE RISE DIDN'T SEEM TO CHANGE A GENERALLY PESSIMISTIC OUTLOOK GENERAL MILLS TOOK THE EXTRAORDINARY STEP OF CUTTING PRICES ON THE BIGGEST BOXES OF THREE CEREAL BRANDS MITCHELL ENERGY & DEVELOPMENT NAMED WILLIAM STEVENS PRESIDENT AND CHIEF OPERATING OFFICER A NEW POST INSURANCE COMPANIES ARE SHOWING INCREASING INTEREST IN USING MANAGED HEALTH CARE FOR CAR INSURANCE CLAIMS BY USING MANAGED CARE TO COVER PERSONAL INJURY CLAIMS CAR INSURANCE COMPANIES CAN CUT MEDICAL COSTS BONDS LEHMAN BROTHERS TREASURY INDEX 555268 OFF 4309 COMMODITIES OIL 1507 A BARREL UP 44 CENTS DOW JONES FUTURES INDEX 13948 UP 127 SPOT INDEX 12383 OFF 079 DOLLAR 10920 YEN UP 055 16965 MARKS OFF 00082 9312130043 931213 BUSINESS BRIEF ASSICURAZIONI GENERALI SPA LATIN AMERICAN OPERATIONS TO BE RESTRUCTURED IN 1994 ASSICURAZIONI GENERALI SPA ITALY'S LARGEST GENERAL INSURER SAID IN MILAN THAT IT WILL RESTRUCTURE SOME LATIN AMERICAN OPERATIONS TO IMPROVE EFFICIENCY BEGINNING IN 1994 THE COMPANY WILL OPERATE IN PERU UNDER THE NAME GENERALI PERU ITS OPERATIONS THERE COME FROM THE FUSION OF SEVERAL SMALLER COMPANIES INTO ONE UNIT GENERALI SAID IT EXPECTS TO HAVE PREMIUM INCOME OF 40 MILLION THERE ARGENTINIAN OPERATIONS WILL ALSO UNDERGO SOME REORGANIZATION THE COMPANY SAID GENERALI SAID IT HAS ABOUT 60 MILLION OF ARGENTINE BUSINESS IN COLOMBIA THE COMPANY SAID IT HAS ABOUT 13 MILLION OF BUSINESS 9312130042 931213 INTERNATIONAL YELTSIN'S CONSTITUTION APPEARS TO GAIN THIN VICTORY IN RUSSIA PRESIDENT'S FOES HOWEVER PICK UP PLENTY OF SEATS IN THE NEW PARLIAMENT BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN VOTERS APPARENTLY GAVE PRESIDENT BORIS YELTSIN AN IMPORTANT POLITICAL VICTORY BY NARROWLY APPROVING A NEW CONSTITUTION BUT AS THE POLLS CLOSED SUNDAY NIGHT IT ALSO APPEARED THAT MR YELTSIN'S OPPONENTS HAD FARED SURPRISINGLY WELL IN THE FIRST RUSSIAN ELECTIONS SINCE THE END OF COMMUNIST RULE TWO YEARS AGO SKETCHY EARLY RETURNS SHOWED THAT BOTH THE REVAMPED COMMUNIST PARTY AND VLADIMIR ZHIRINOVSKY'S ULTRANATIONALISTIC LIBERAL DEMOCRATIC PARTY HAD WON OVER AN UNEXPECTEDLY LARGE PERCENTAGE OF VOTERS THE PRECISE MAKEUP OF THE NEW BICAMERAL LEGISLATURE ISN'T YET CLEAR BUT THE EARLY INDICATIONS SUGGEST MR YELTSIN AND HIS PARLIAMENTARY SUPPORTERS WILL HAVE TO CONTEND WITH A SIZABLE OPPOSITION BLOC THAT COULD SLOW EFFORTS TO PUSH RAPID ECONOMIC REFORM THE RESULTS SEEMED TO BEAR OUT THE FEARS OF ANATOLI SOBCHAK MAYOR OF ST PETERSBURG WHO PREDICTED LAST WEEK THAT WE WILL END UP WITH A PARLIAMENT THAT'S A LOT LIKE THE LAST ONE EVGENY KISELOV A TELEVISION COMMENTATOR SAID SUNDAY NIGHT THE NEW PARLIAMENT WILL POSE PROBLEMS BOTH FOR THE PRESIDENT AND THE GOVERNMENT BUT IF THE RESULTS GIVE MR YELTSIN HEADACHES THEY ALSO UNDERLINE THE DEMOCRATIC NATURE OF THE ELECTION IT WAS MR YELTSIN WHO CALLED THE EARLY VOTE AND HIS SUPPORTERS DOMINATED MASS MEDIA CAMPAIGN COVERAGE UNFAIRLY MANY BELIEVE DESPITE SUCH ADVANTAGES MR YELTSIN'S ALLIES FAILED TO WIN A STRONG MANDATE SOME ANALYSTS ESTIMATED THAT RUSSIA'S CHOICE THE PROYELTSIN PARTY HEADED BY ECONOMIC CZAR YEGOR GAIDAR WILL WIN ABOUT ONETHIRD OF THE SEATS IN THE NEW STATE DUMA THE LEGISLATURE'S LOWER HOUSE MR YELTSIN'S MOST STRIDENT OPPONENTS COULD CLAIM ANOTHER ONETHIRD WITH CENTRISTS TAKING THE REMAINING THIRD RETURNS IN RACES FOR THE UPPER HOUSE THE FEDERATION COUNCIL WEREN'T AVAILABLE RUSSIA'S CHOICE HAD HOPED TO DO BETTER BUT MANY RUSSIANS BLAME MR GAIDAR'S REFORMS FOR WRECKING THE ECONOMY AND CAUSING LIVING STANDARDS TO PLUMMET CAPITALISM IN THIS COUNTRY IS BAD SAID PYOTR TIMOFEYICH A MOSCOW PENSIONER FUMBLING WITH HIS BALLOT PAPERS AT A LOCAL POLLING STATION MR YELTSIN HOWEVER CAN TAKE HEART FROM THE VOTE ON THE CONSTITUTION WHICH REPRESENTED THE PRESIDENT'S FIRST PUBLIC TEST SINCE AUTUMN WHEN HE DISSOLVED AND THEN ORDERED THE ASSAULT ON THE FORMER PARLIAMENT MR YELTSIN HIMSELF PREPARED THE FINAL DRAFT OF THE DOCUMENT WHICH GREATLY ENHANCES PRESIDENTIAL POWERS DURING THE CAMPAIGN MANY ANTIYELTSIN CANDIDATES HAD URGED THE ELECTORATE TO REJECT THE DOCUMENT FOR THE CONSTITUTION TO PASS AT LEAST 50 OF RUSSIA'S 107 MILLION REGISTERED VOTERS HAD TO CAST A BALLOT ONCE THAT THRESHOLD WAS ATTAINED A SIMPLE MAJORITY HAD TO APPROVE THE DOCUMENT THE VOTE WAS A CLIFFHANGER BY LATE SUNDAY THOUGH ELECTION OFFICIALS SAID THAT SLIGHTLY MORE THAN HALF OF THE ELECTORATE HAD CAST THEIR BALLOTS ALLOWING THE CONSTITUTION TO PASS OF THOSE WHO VOTED A CLEAR MAJORITY ESTIMATED AT MORE THAN 60 FAVORED THE NEW BASIC LAW AS OF EARLY MONDAY HOWEVER THE VOTING RESULTS WEREN'T OFFICIAL DESPITE RUSSIA'S FIRSTEVER DEMOCRATIC ELECTIONS SEVERE VOTER APATHY NEARLY PLUNGED RUSSIA INTO A NEW ROUND OF POLITICAL CHAOS IF THE CONSTITUTION HADN'T PASSED THE ELECTION SUNDAY ARGUABLY COULD HAVE BEEN VOIDED RUSSIA WOULD STILL HAVE BEEN WITHOUT A LEGISLATURE AND WITHOUT AN EFFECTIVE CONSTITUTION ELECTION OFFICIALS ATTRIBUTED THE LOW TURNOUT TO HARSH WINTER WEATHER AN INTERESTING SOCCER GAME ON TELEVISION AND GENERAL DISGUST WITH RUSSIA'S TUMULTUOUS NATIONAL POLITICS MR YELTSIN'S FREQUENT CLASHES WITH THE FORMER PARLIAMENT LEFT MANY VOTERS COLD PEOPLE ARE SICK AND TIRED OF IT ALL SAID PAVEL KAZMIN AN ELECTION OFFICIAL MANNING THE BALLOT BOXES IN MOSCOW'S 11TH ELECTORAL DISTRICT STAYING AWAY IS A FORM OF PROTEST THE EARLIEST RESULTS CAME FROM FOUR ELECTION DISTRICTS IN RUSSIA'S FAR EAST WHILE COVERING JUST A SMALL FRACTION OF RUSSIA'S ELECTORATE THEY SHOWED STRONG SUPPORT FOR MR ZHIRINOVSKY COMBINED RESULTS FROM THE DISTRICTS GAVE 24 OF THE VOTE TO MR ZHIRINOVSKY 17 TO THE COMMUNIST PARTY 16 TO MR GAIDAR'S PARTY 83 TO THE CONSERVATIVE AGRARIAN PARTY AND 66 TO THE PROREFORM PARTY OF ECONOMIST GRIGORY YAVLINSKY ACCORDING TO EARLY ESTIMATES SEVERAL OF RUSSIA'S 13 NATIONAL POLITICAL PARTIES FAILED TO WIN ENOUGH VOTES TO QUALIFY FOR ANY OF THE PROPORTIONALLY ALLOCATED SEATS IN THE STATE DUMA THESE INCLUDE THE CENTRIST CIVIC UNION FUTURE OF RUSSIANEW FACES DIGNITY AND CHARITY AND RUSSIA'S GREEN PARTY AMONG THE ELECTION'S BIGGEST SURPRISES WAS THE STRONG SHOWING OF MR ZHIRINOVSKY WHO MAY EMERGE AS A SERIOUS OPPOSITION FORCE A RUNNERUP TO MR YELTSIN IN RUSSIA'S 1991 PRESIDENTIAL ELECTIONS THE ONCECLOWNISH MR ZHIRINOVSKY HAS BECOME THE BOGEYMAN OF THE YELTSIN CAMP MR GAIDAR RECENTLY COMPARED MR ZHIRINOVSKY'S RISE TO THAT OF ADOLF HITLER MORE THAN ANY OTHER CANDIDATE DURING THE CAMPAIGN THE 47YEAROLD MR ZHIRINOVSKY MASTERED THE MEDIA HE MADE THE MOST OF HIS ALLOTTED TELEVISION TIME SPEAKING IN OFTEN PROVOCATIVE SOUND BITES WE ARE THE ONLY PARTY IN OR OUT OF GOVERNMENT NOT HEADED BY OLD COMMUNISTS HE SAID AND MANY VOTERS APPRECIATED THE MESSAGE I'M FOR ZHIRINOVSKY SAID MARINA LISNYANSKAYA WHO MANAGES A KIOSK IN CENTRAL MOSCOW HE'S THE MOST ENERGETIC BUT HIS VIEWS ARE SURE TO GIVE WESTERN NATIONS PAUSE MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY WHICH IS NEITHER LIBERAL NOR PARTICULARLY DEMOCRATIC DOESN'T OPPOSE ECONOMIC REFORM BUT IT OPENLY CALLS FOR AN EXPANSIONIST RUSSIA HE ENVISIONS THE COUNTRY GROWING TO THE MEDITERRANEAN SEA AND THE INDIAN OCEAN TO BE SURE THE ELECTION WON'T USHER IN A NEW DEMOCRATIC ERA IN RUSSIA OVERNIGHT MANY KEY QUESTIONS REMAIN UNANSWERED INDEED AS ELECTION OFFICIALS FINISH COUNTING THE BALLOTS A NEW ROUND OF POLITICAL JOCKEYING IS SET TO BEGIN AMONG THE MOST PRESSING QUESTIONS IS WHETHER AND HOW THE NEW CONSTITUTION CAN BE AMENDED ACCORDING TO MR YELTSIN THE CONSTITUTION TAKES EFFECT IMMEDIATELY AND AMENDMENTS REQUIRE EXTRAORDINARY INITIATIVE AND NATIONAL CONSENSUS AS IN THE US BUT OTHERS ARGUE THE VOTE WAS MERELY A REFERENDUM ON THE CONSTITUTION'S BASIC PRINCIPLES THEY WOULD LIKE TO SEE THE NEW LEGISLATURE OR A SPECIALLY CONVENED CONSTITUTIONAL CONFERENCE CONTINUE TO DEBATE AND RESHAPE THE DOCUMENT 9312130041 931213 WHO'S NEWS DAVENPORT TO QUIT AS THE PRESIDENT OF TOKOS MEDICAL BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL CRAIG T DAVENPORT SAID HE WOULD RESIGN AS PRESIDENT AND CHIEF OPERATING OFFICER OF TOKOS MEDICAL CORP THE STOCK OF THE SANTA ANA CALIF HOME HEALTHCARE COMPANY HAS PLUNGED RECENTLY BECAUSE OF QUESTIONS ABOUT ONE OF ITS PROCEDURES MR DAVENPORT 41 YEARS OLD CITED PERSONAL REASONS FOR LEAVING BUT DECLINED TO ELABORATE AND SAID HE IS UNDECIDED ABOUT WHAT HIS NEXT JOB WILL BE HE SAID HIS DEPARTURE WOULD OPEN NEW OPPORTUNITIES FOR OTHER EXECUTIVES TO MOVE UP HE SAID HE WILL REMAIN ON THE TOKOS BOARD THE COMPANY WHICH SPECIALIZES IN HOME CARE FOR PREGNANT WOMEN SAID MR DAVENPORT'S SUCCESSOR WOULDN'T BE NAMED IMMEDIATELY A SPOKESMAN SAID HIS DUTIES WOULD BE SPREAD BETWEEN ROBERT F BYRNES 49 TOKOS'S CHIEF EXECUTIVE OFFICER AND JOHN R BASSON 48 PRESIDENT OF ITS MAIN OPERATING UNIT MR BYRNES SAID THE CIRCUMSTANCES LEADING TO MR DAVENPORT'S DEPARTURE WERE NOT A BLACK AND WHITE THING HE ADDED I THINK IT'S BEST FOR CRAIG AND BEST FOR THE COMPANY THAT'S WHY WE'RE DOING IT MR BYRNES SAID MR DAVENPORT INITIATED TALKS EARLY IN THE YEAR THAT LED TO HIS DEPARTURE MR BYRNES FOUNDED TOKOS IN 1984 WITH FIVE EMPLOYEES IN MAY OF THE FOLLOWING YEAR MR DAVENPORT WAS HIRED TO HELP BUILD THE COMPANY WHICH THEN HAD 29 STAFF MEMBERS AS VICE PRESIDENT IN CHARGE OF THE COMPANY'S FIELD OPERATIONS HE CREATED TOKOS'S CLINICAL POLICIES AND PROCEDURES IN LATE 1986 HE TOOK THE TITLES OF PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY NOW EMPLOYS MORE THAT 3000 PEOPLE FROM THE TIME TOKOS WENT PUBLIC IN 1990 UNTIL EARLY 1992 ITS STOCK PRICE SHOT TO 4625 FROM THE INITIAL OFFERING PRICE OF 12 BUT LATE LAST YEAR A CANADIAN STUDY RAISED QUESTIONS ABOUT THE EFFECTIVENESS OF A LABORINHIBITING OR TOCOLYTIC DRUG CALLED RITODRINE TOKOS WHICH USES A PROPRIETARY DEVICE TO MONITOR WOMEN AT RISK OF PREMATURE BIRTHS ALSO DERIVES INCOME FROM ITS NURSES' ADMINISTRATION OF A TOCOLYTIC DRUG SIMILAR TO RITODRINE IN THE AFTERMATH OF THE STUDY THE COMPANY'S STOCK PRICE PLUNGED AND EVENTUALLY ITS PROFITS FOLLOWED AT LEAST ONE LAWSUIT WAS FILED AGAINST TOKOS BY A SHAREHOLDER AS A RESULT OF THE STUDY IN MARCH THE COMPANY'S BOARD ADOPTED A SHAREHOLDER RIGHTS PLAN TO FEND OFF ANY UNWANTED TAKEOVER ATTEMPTS JUST A DAY AFTER THE COMPANY'S STOCK FELL 21 MR BYRNES SAID IN AN INTERVIEW THE COMPANY ACKNOWLEDGES SOME RECENT CONTROVERSIES AND ISSUES THAT WE'RE RESOLVING BUT NEITHER OUR SUCCESSES NOR OUR DISAPPOINMENTS ARE RELATED TO ONE PERSON IN NASDAQ STOCK MARKET TRADING FRIDAY TOKOS SHARES CLOSED UNCHANGED AT 6125 9312130040 931213 BUSINESS BRIEF LOCKHEED CORP FLIGHT RESTRICTIONS EXPECTED TO CEASE FOR C141B IN 1994 LOCKHEED CORP SAID ALL FLIGHT RESTRICTIONS WILL BE LIFTED FROM THE AIR FORCE FLEET OF 244 LOCKHEED C141B MILITARY TRANSPORTS BY THE END OF 1994 CRACKING IN THE WINGS AND NEAR THE WINDSHIELD OF THE AGING AIRCRAFT PROMPTED OFFICIALS TO RESTRICT THE PLANE'S LOADS AND FLYING CONDITIONS UNTIL REPAIRS ARE MADE THE PLANES ARE TYPICALLY BETWEEN 25 TO 30 YEARS OLD THE AIR FORCE HAS POINTED TO PROBLEMS WITH THE AIRCRAFT AS REASONS TO PROCEED WITH FULL FUNDING FOR BUYING THE CONTROVERSIAL C17 ADVANCED TRANSPORT BUILT BY MCDONNELL DOUGLAS CORP OR FOR BUYING COMMERCIAL JETS FOR MILITARY USE 9312130039 931213 AST RESEARCH MALAYSIAN UNIT IRVINE CALIF AST RESEARCH INC OPENED A UNIT IN KUALA LUMPUR MALAYSIA CALLED AST COMPUTER & SERVICES THE PERSONAL COMPUTER CONCERN SAID THE UNIT INITIALLY WILL BE STAFFED WITH SALES MARKETING AND TECHNICAL PERSONNEL AND EVENTUALLY WILL PERFORM DISTRIBUTION AND TECHNICAL SUPPORT FUNCTIONS FOR DISTRIBUTORS AND CUSTOMERS IN MALAYSIA 9312130038 931213 GLOBAL VIEW WHY AMERICA TOPS EUROPE ON JOB CREATION BY GEORGE MELLOAN BRUSSELS AT A SUMMIT HERE THIS PAST WEEKEND LEADERS OF THE 12 EUROPEAN COMMUNITY OR EUROPEAN UNION NATIONS FOCUSED ON THEIR BIGGEST PROBLEM JOBLESSNESS GLOOMILY THEY PORED OVER THE LATEST COMMISSION BOILERPLATE ON JOB CREATION A WHITE PAPER MUCH RECOMMENDED BY COMMISSION PRESIDENT JACQUES DELORS THE PAPER URGED CUTS IN THE WAGE TAXES THAT FUND EUROPE'S SWEEPING ARRAY OF WELFARE STATE BENEFITS IT COUNSELED GREATER LABOR MARKET FLEXIBILITYFREEDOM TO HIRE AND FIRE SO FAR SO GOOD BUT TO AVOID PUBLIC RANCOR THE EC HOPES TO PRESERVE EXISTING BENEFITS THE TRICK IT THINKS IS TO SHIFT THE INCIDENCE OF TAXES AWAY FROM WAGES SUPPLY SIDERS HAVE WORKED ECONOMIC WONDERS BY CUTTING HIGHEND INCOME TAX RATES BUT SHIFTING FROM PAYROLL TO CONSUMPTION TAXES AS THE COMMISSION ENVISIONS IS MORE DUBIOUS PEOPLE GAUGE THEIR WELLBEING NOT BY WHAT THEIR PAY STUB SAYS BUT BY HOW MUCH THEIR TAKEHOME PAY WILL BUY A BOOST IN ALREADY HEAVY VALUE ADDED TAXES VATS HITS BUYING POWER JUST AS SURELY AS PAYROLL LEVIES BUT AT LEAST THE COMMISSION FINALLY IS FOCUSING ON WHAT GOOD ECONOMISTS HAVE BEEN TELLING EUROPEANS FOR YEARS THAT THEIR LABOR MARKETS ARE TOO RIGID EFFORTS BY SOCIALIST POLITICIANS TO PROTECT JOBS AND CHANNEL SOCIAL BENEFITS THROUGH THE STATE HAVE CRIPPLED THE ABILITY OF WORKERS AND EMPLOYERS TO ADAPT TO CHANGING TIMES EMPLOYERS FACE HEAVY LABOR TAXES AND TAX REPORTING REQUIREMENTS LAWS BLOCK WORK FORCE CUTS EVEN WHEN SALES SLUMP THERE ARE SUBTLE BARRIERS TO SHIFTS TO NEW MARKETS IN SHORT EUROPE'S SOIL DOES NOT EASILY SPROUT NEW FIRMS AND JOBS SUCH RIGIDITIES EXPLAIN DIVERGENT TRENDS IN THE US AND EUROPEAN ECONOMIES WHILE FELIPE GONZALEZ AND FRANCOIS MITTERRAND MOPE OVER LABOR UNREST THE US ECONOMY IS AGAIN CREATING JOBS AT A GOOD CLIP US UNEMPLOYMENT FELL TO 64 IN NOVEMBER FROM 68 IN OCTOBER IN THE EUROPEAN COMMUNITY 107 OF THE WORK FORCE IS UNEMPLOYED RISING PUBLIC DISCONTENT MAKES EC SUMMITS SOBER AFFAIRS THE MOST REMARKABLE THING ABOUT THE FALLING US JOBLESS RATE IS THAT US CORPORATIONS STILL ARE GOING THROUGH WHAT SOME SEE AS A REVOLUTIONARY STRUCTURAL CHANGE BY ONE ESTIMATE AMERICA'S LARGEST FORTUNE 500 COMPANIES HAVE SHED FOUR MILLION JOBS SINCE 1980 THAT THE PROCESS IS CONTINUING WAS MADE AMPLY EVIDENT LAST WEEK WHEN XEROX ANNOUNCED PLANS TO LAY OFF 10000 WORKERS 10 OF ITS WORK FORCE STARTING NEXT YEAR RJR NABISCO ANNOUNCED A CUT OF 6000 JOBS NO ONE WOULD ARGUE THAT THIS MASSIVE RESTRUCTURING HAS BEEN EASY FOR THOSE AFFECTED BY IT BUT ONE OF THE LAWS OF NATURE IS ADAPT OR DIE AND AMERICAN CORPORATE MANAGERS CHOSE THE FIRST ALTERNATIVE AS THE LESS PAINFUL WHY IT IS HAPPENING WOULD FILL A FEW DOCTORAL THESES BUT CLEARLY WHEN INFLATION WAS WRUNG OUT OF THE US ECONOMY IN THE EARLY 1980S CORPORATIONS WERE FORCED TO SHED ALL THE FAT THEY HAD ACCUMULATED DURING YEARS OF EASY SALES AND RISING PRICES DEFLATION IS A HARD TASKMASTER FOR PRODUCERS MAKING IT NO LONGER EASY TO BRING DOLLARS DOWN TO THE BOTTOM LINE WHAT THIS HARD SCHOOL ALSO TAUGHT WAS THE IMPORTANCE OF ADAPTABILITY WHEN AN ECONOMIC FUNDAMENTAL ABRUPTLY CHANGES AMERICA'S LABOR MARKET SEEMS TO BE PASSING THE TEST IF NOT ALWAYS HAPPILY SO INDEED THE CHANGES ARE SOMETHING OF A WONDER TO BEHOLD PARTICULARLY AS YOU WATCH THEM FROM A BASE IN EUROPE THERE IS FIRST OF ALL GEOGRAPHICAL ADAPTABILITY PEOPLE MOVE TO FIND JOBS ENTIRE COMPANIES MOVE TO FIND BETTER WORKERS AND LOWER COSTS TAKING ADVANTAGE OF MODERN COMMUNICATIONS NEW YORK'S CITIBANK SET UP BACK OFFICE OPERATIONS IN SIOUX FALLS SD JC PENNEY MOVED ITS HEADQUARTERS FROM NEW YORK TO IRVING TEXAS USUALLY THE MOVES BY BOTH EMPLOYEES AND EMPLOYERS ARE TO STATES WHERE TAXES AND LIVING COSTS ARE LOWER SOME GREAT PLAINS AND MIDWEST CITIES AND TOWNS HAVE BEEN LARGELY UNTOUCHED BY THE RECESSION THAT HIT BOTH US COASTS WITH UNEMPLOYMENT RATES AS LOW AS 2 TO 3 WORKING METHODS CHANGE NOT A FEW CORPORATE EXECUTIVES HIT BY THE GRIM REAPER THAT HAS SWEPT THROUGH THE FORTUNE 500 HAVE TURNED THEMSELVES INTO CONSULTANTS OFTEN CONTINUING TO WORK FOR THE COMPANIES THAT PENSIONED THEM OFF OR INDUCED THEM TO ACCEPT A BUYOUT THAT WAY THE COMPANY PAYS ONLY FOR WHAT IT NEEDS AND THE EXECUTIVE HAS GREATER INDEPENDENCE SOME USE THEIR BUYOUT PAYMENTS TO START NEW BUSINESSES MANAGERS BUY BRANCH OPERATIONS FROM PARENT COMPANIES AND RUN THEM AS ENTREPRENEURSHIPS THE USE OF PARTTIME OR TEMPORARY LABOR HAS BURGEONED RELIEVING COMPANIES OF FRINGE BENEFIT COSTS CERTAINLY BUT ALSO GIVING THE EMPLOYEE GREATER CONTROL OVER HIS OR HER TIME COTTAGE INDUSTRY WITH HIGHTECH WORKERS LINKED TO THEIR EMPLOYERS ONLY WITH A PERSONAL COMPUTER AND PHONE LINE HAS SPROUTED THE WOODS ARE FULL OF THEM AROUND HERE SAYS A LAWYER IN SCENIC BRATTLEBORO VT CONTRAST THIS WITH EUROPE I RECENTLY FOUND MYSELF BICYCLING ALONGSIDE A HEALTHY LOOKING YOUNG MAN NEAR GENK IN BELGIUM WHO SAID HE HADN'T WORKED IN TWO YEARS BUT HE WASN'T MUCH WORRIED BECAUSE HIS UNEMPLOYMENT CHECKS WERE STILL COMING NOT MUCH INCENTIVE TO ADAPT THERE AS THE JOURNAL'S PETER GUMBEL REPORTED LAST WEEK IT CAN TAKE TWO OR THREE YEARS FOR A SPANISH EMPLOYER TO NEGOTIATE A LAYOFF DISMISSAL COSTS AVERAGE 32000 PER WORKER FURLOUGHED SO EMPLOYERS DON'T HIRE OR IF THEY DO THEY DO IT OFF THE BOOKS INDEED A LOT OF THE ADAPTING THAT IS DONE IN EUROPE IS IN THE FORM OF BLACK ACTIRITY AN ORGANIZATION REPRESENTING SMALL AND MEDIUM SIZED EMPLOYERS SAYS THAT A LOT OF THE OFFTHEBOOKS WORK IN SERVICE INDUSTRIES DERIVES SOLELY FROM THE COMPLEXITIES OF COMPUTING THE VAT NOT TO MENTION ITS HIGH COST TO THE CUSTOMER SOME RESTAURANTS HAVE AN UNDERSTANDING WITH REGULAR CUSTOMERS ON THE VATSAVING ADVANTAGES OF PAYING CASH OF COURSE EUROPE HAS SPECIAL DISADVANTAGES EC FREEDOMS NOTWITHSTANDING IT IS NOT EASY FOR AN ITALIAN SAY TO SEEK OUT A JOB IN SAY DENMARK LABOR MOBILITY IS SLOWED BY LANGUAGE AND CULTURE BARRIERS THERE ARE NO LOW TAX SOUTH DAKOTAS TAXES ARE HIGH EVERYWHERE INFORMAL BARRIERS TO NEW MARKETS ARE HARD TO BREAK DOWN BUT AT LEAST EUROPE IS BEGINNING TO RECOGNIZE WHERE ITS JOBS PROBLEM LIES AND IS BEGINNING TO ADDRESS IT UNDER THE PRESSURE OF RECESSION AND PUBLIC DISCONTENT WHETHER AMERICA UNDERSTANDS THAT ITS GREAT STRENGTH LIES IN THE COMPETITION AMONG STATES TO LURE WORKERS AND IN THE GENERAL ADAPTABILITY OF ITS WORK FORCE IS A GOOD QUESTION BUT FOR ANYONE WHO DOESN'T A VISIT TO EUROPE MIGHT HELP 9312130037 931213 NORWEGIAN PRICE INDEX DIPS OSLO NORWAY'S CONSUMER PRICE INDEX FELL 01 IN NOVEMBER FROM OCTOBER BRINGING THE YEARTOYEAR INFLATION RATE TO 19 THE NORWEGIAN STATISTICS AGENCY SAID THERE WAS A SMALL DECLINE IN NOVEMBER IN FOOD PRICES HOUSING FURNITURE AND HOUSEHOLD ARTICLES AND ENTERTAINMENT WHICH ACCOUNTED FOR THE DECREASE IN THE CONSUMER PRICE INDEX FROM OCTOBER HOWEVER CLOTHING AND FOOTWEAR AS WELL AS MISCELLANEOUS GOODS AND SERVICES WHICH INCLUDES RESTAURANT VISITS COSMETICS BAGGAGE AND JEWELRY REGISTERED A SLIGHT INCREASE IN NOVEMBER 9312130036 931213 PULTE TO REDEEM DEBENTURES BLOOMFIELD HILLS MICH PULTE CORP SAID IT CALLING 75 MILLION OF DEBENTURES FOR REDEMPTION DEC 31 IN CONNECTION WITH THE LIQUIDATION OF ITS PULTE HOME CREDIT UNIT THE REDEMPTION PRICE FOR THE 9 5/8 DEBENTURES IS 106256 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9312130035 931213 WHO'S NEWS AMCAST INDUSTRIAL CORP AMCAST INDUSTRIAL CORP DAYTON OHIO R WILLIAM VAN SANT AND JAMES K BAKER WERE NAMED DIRECTORS OF THIS METALPRODUCTS MAKER MR VAN SANT IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LUKENS INC MR BAKER IS CHAIRMAN OF ARVIN INDUSTRIES INC THEY SUCCEED ROBERT E KING 70 RETIRED VICE CHAIRMAN OF SQUARE D CO AND WILLIAM C ADAMS RETIRED VICE CHAIRMAN OF FEDERALMOGUL CORP MESSRS KING AND ADAMS RETIRED FROM THE BOARD 9312130034 931213 WHO'S NEWS RYAN BECK & CO RYAN BECK & CO WEST ORANGE NJ TK FLATLEY 53 YEARS OLD WAS NAMED CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OF THIS INVESTMENT BANKING FIRM SUCCEEDING JOHN BARAN WHO LEFT THE COMPANY EARLIER THIS YEAR MR FLATLEY WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MOTIVATED SECURITY SERVICES INC A SECURITY GUARD COMPANY 9312130033 931213 MARKETING BRIEF PARAMOUNT COMMUNICATIONS INC MIAMI TV STATION AGREES TO BE A NETWORK AFFILIATE PARAMOUNT COMMUNICATIONS INC NEW YORK SAID THAT A MIAMI TELEVISION STATION THAT WAS FORMERLY SLATED TO JOIN RIVAL TIME WARNER INC'S UPSTART WB NETWORK HAS AGREED INSTEAD TO BECOME AN AFFILIATE OF ITS NEW PARAMOUNT NETWORK THE ENTERTAINMENT AND PUBLISHING GIANT SAID THAT RENAISSANCE COMMUNICATIONS CORP'S UHF STATION WDZL IN MIAMI WILL JOIN PARAMOUNT NETWORK WHICH WILL BEGIN BROADCASTING IN JANUARY 1995 PARAMOUNT NETWORK IS JOINTLY OWNED AND OPERATED BY PARAMOUNT COMMUNICATIONS AND CHRISCRAFT INDUSTRIES INC BOTH TIME WARNER AND PARAMOUNT IN PREPARING TO LAUNCH NEW BROADCAST NETWORKS HAVE BEEN RACING TO SIGN UP AS MANY OF THE 200ODD INDEPENDENT STATIONS THAT HAVEN'T BEEN COMMITTED TO NEWS CORP'S FOX NETWORK IN A STATEMENT PARAMOUNT SAID THE SIGNING OF THIS KEY AFFILIATE IS ESPECIALLY SIGNIFICANT AS IT REPRESENTS THE CONTINUING MOMENTUM OF THE PARAMOUNT NETWORK THE COMPANY SAID THAT PARAMOUNT NETWORK CURRENTLY HAS 18 OTHER TELEVISION STATIONS THAT HAVE COMMITTED TO BECOMING AFFILIATES 9312130032 931213 RANK SELLS 2 HOTELS TO REGAL LONDON BRITISH LEISURE AND ENTERTAINMENT GROUP RANK ORGANISATION PLC SOLD TWO OF ITS PROVINCIAL HOTELS TO REGAL HOTEL GROUP PLC FOR 26 MILLION 39 MILLION A RANK SPOKESWOMEN SAID THE SALE OF THE WEST RETFORD HOTEL AND THE BROWNSOVER HALL HOTEL IN THE MIDLANDS WAS PART OF A STRATEGY UNVEILED IN APRIL 1992 THAT CALLED FOR THE SALE OF THE COMPANY'S HOTEL PORTFOLIO ONCE THESE TWO ARE SOLD THERE ARE ONLY FOUR LEFT THE SPOKESWOMAN SAID 9312130031 931213 TECHNOLOGY FDA INTENDS TO MONITOR TISSUE BONE TRANSPLANTS WASHINGTON THE FOOD AND DRUG ADMINISTRATION WILL MONITOR THE SAFETY OF HUMANTISSUE AND BONE TRANSPLANTS FDA COMMISSIONER DAVID KESSLER ANNOUNCED A SET OF INTERIM RULES FRIDAY TO ENSURE THAT DOMESTIC AND IMPORTED TISSUES ARE TESTED FOR INFECTIOUS DISEASES SPECIFICALLY FOR THE AIDS AND HEPATITIS VIRUSES THE RULES INCLUDE A REQUIREMENT THAT TISSUE BANKS OBTAIN A MEDICAL HISTORY OF DONORS TEST THEIR BLOOD AND KEEP RECORDS FOR 10 YEARS THE FDA WILL INSPECT THE TISSUE BANKS WHEN IT COMES TO HUMAN TISSUE FOR TRANSPLANTATION THE FDA WILL ENSURE THE PUBLIC IS PROTECTED AND PROTECTED WELL DR KESSLER SAID REP RON WYDEN D ORE CALLED THE FDA'S ACTION A SOLID FIRST STEP BUT SAID MORE NEEDS TO BE DONE TO CREATE STANDARDS FOR PRESERVING AND TRACKING TISSUE ALONG WITH SEN PAUL SIMON D ILL HE'S SPONSORING LEGISLATION FOR COMPREHENSIVE TISSUE MONITORING IT WOULD PAY FOR THE MONITORING WITH USER FEES THE SYSTEM OVERALL IS RELATIVELY SAFE BUT THAT'S NOT GOOD ENOUGH REP WYDEN SAID DR KESSLER AGREED THAT THE RISK OF DISEASE TRANSMISSION FROM TISSUE TRANSPLANTS IS SMALL WE ARE TAKING ACTION TO HEAD OFF FUTURE PROBLEMS AND TO ENSURE THAT THE NATION'S TISSUEDONOR PROGRAM CONTINUES TO BE WORTHY OF THE PUBLIC'S TRUST AND CONFIDENCE 9312130030 931213 BUSINESS BRIEF WILLCOX & GIBBS INC STOCK SALE PROCEEDS TO GO TOWARD PAYING DOWN DEBT WILLCOX & GIBBS INC AGREED TO SELL 35 MILLION NEWLY ISSUED COMMON SHARES TO REXEL SA FOR 314 MILLION OR 9 A SHARE BY JAN PROCEEDS WILL BE USED TO REPAY DEBT THAT WOULD BE INCURRED IN THE PREVIOUSLY ANNOUNCED ACQUISITION OF SUMMERS GROUP INC FROM BTR PLC WHICH IS EXPECTED TO CLOSE THIS WEEK THE STOCK SALE IS CONTINGENT ON WILLCOX & GIBBS ACQUIRING SUMMERS GROUP AS PREVIOUSLY REPORTED WILLCOX & GIBBS WILL PAY 60 MILLION IN CASH AND 25 MILLION IN THREEYEAR NOTES AND ADDITIONAL CONSIDERATIONS BASED ON FUTURE PERFORMANCE TO ACQUIRE SUMMERS WILLCOX & GIBBS A NEW YORK SUPPLIER OF ELECTRICAL PARTS SAID REXEL WILL OWN 40 OF ITS OUTSTANDING COMMON SHARES FOLLOWING THE SALE IN ADDITION AFTER THE STOCK SALE REXEL WILL BE ABLE TO APPOINT FIVE OF NINE DIRECTORS AND PURCHASE AN ADDITIONAL 5 OF WILLCOX & GIBBS COMMON STOCK PREVIOUSLY REXEL HAD NOMINATED THREE DIRECTORS ON A 10MEMBER BOARD IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY WILLCOX & GIBBS GAINED 125 CENTS TO 775 9312130029 931213 LEISURE & ARTS ON SPORTS ROCKETS IN ORBIT BY FREDERICK C KLEIN HOUSTON IN THIS SEASON ONE AMJ AFTER MICHAEL JORDAN THE SUMMIT OF THE NATIONAL BASKETBALL ASSOCIATION IS UM THE SUMMIT IT'S THE ARENA WHERE THE HOUSTON ROCKETS PLAY AND THEY'VE MADE THE BIGGEST RACKET IN THE YOUNG CAMPAIGN ON SATURDAY NIGHT BEFORE 16611 REVVED UP FANS THE HOUSTONIANS EXTENDED THEIR LEAGUEBEST WONLOST RECORD TO 191 BY BEATING THE SEATTLE SUPERSONICS 8275 THAT'S RIGHT 191 THE VICTORY WAS NO ORDINARY ONE BECAUSE THE SONICS WERE 161 COMING IN THAT'S RIGHT 161 THE ROCKETS HAVE NEVER WON AN NBA TITLE SEATTLE HASN'T IN SOME TIME THIS REALLY IS A NEW SEASON IT'S NEW IN TERMS OF HEROES TOO LARRY BIRD MAGIC JOHNSON AND MJ THE LEADING LIGHTS OF RECENTYEARS PAST HAVE RETIRED AND BIRD AND JOHNSON AT LEAST ARE UNLIKELY TO RETURN THESE WERE GENTS WHO DAZZLED US WITH THEIR SKILLS ALL MAGICIANS IN THEIR OWN WAYS A TICKET TO ONE OF THEIR PERFORMANCES CAME WITH A VIRTUAL GUARANTEE THEY WE WOULD SEE SOMETHING AND SOMETIMES SEVERAL SOMETHINGS THAT WOULD MAKE OUR EYES POP THAT RARELY DISAPPOINTED NOW AS NIKE GEARS UP TO PRODUCE A LINE OF COUCH JORDAN LOAFERS THE NBA FEATURES BIG FELLAS SEEMINGLY GALORE THERE ARE HAKEEM SHAQ AND DAVID PATRICK ALONZO AND DIKEMBE THE BEST OF THEM IS HAKEEM LAST NAME OLAJUWON THE 7FOOTTALL NATIVE OF NIGERIA HAS HELD THAT DISTINCTION FOR SEVERAL YEARS BUT IT'S ONLY THIS SEASON THAT MARQUEE SPACE HAS BEEN CLEARED FOR HIM UNLIKE THE BACKBOARDSHATTERING AND GAMEDELAYING FORAYS OF THE IMMENSE SHAQ O'NEAL OLAJUWON'S TALENTS ARE THE TERSE ONES OF THE TYPICAL BIG MAN BUT THEY ARE EMPHATIC NONETHELESS NO ONE ROAMS FREE IN OLAJUWONLAND WHICH IS TO SAY WITHIN 15 FEET OF THE ROCKETS' HOOP AND IF HIS EFFORTS SOMETIMES SEEM TO BE SUPPLEMENTED BY THE MEN WITH THE WHISTLES THAT IS SEEN AS HIS DUE HE HAS TREMENDOUS GRACE FROM THE REFEREES SOURGRIPED GEORGE KARL THE SEATTLE COACH AFTER SATURDAY NIGHT'S SCRIMMAGE HE'S ALLOWED TO FOUL AND PLAY ZONE BUT HE'S A SUPERSTAR SO I GUESS THAT'S LIFE KARL'S BAD MOOD REFLECTED THE GAME HE'D JUST SEEN AN AFFAIR IN WHICH THE ROCKETS' DEFENSE AND THEIR OWN EXECRABLE SHOOTING HELD THE SONICS 33 POINTS BELOW THEIR SEASON'S SCORING AVERAGE THE SONICS SHOT 316 FROM THE FIELD AND THAT WAS AN IMPROVEMENT FROM THEIR 261 MARK OF THE FIRST HALF THE HOME TEAM'S 449 FIELD GOAL AVERAGE ALSO WAS BELOW PAR FOR THE PROS BUT THAT'S THE WAY THINGS HAVE BEEN GOING THIS SEASON PROBABLY AS A RESULT OF THE ASCENT OF THE GIANTS THE NBA SEEMS TO BE FOLLOWING THE NATIONAL FOOTBALL LEAGUE DOWN THE DUBIOUS PATH OF DEFENSIVE DOMINATION ALL FOUR NBA DIVISIONAL LEADERS AS OF SATURDAY NIGHT HOUSTON SEATTLE NEW YORK AND ATLANTA RANK AMONG THE LEAGUE'S BEST IN FEWESTPOINTS ALLOWED RUDY TOMJANOVICH THE HOUSTON COACH NOTED THE GRIDIRON PARALLEL IN HIS POSTGAME ORATION WHAT A DEFENSIVE BATTLE A CLASSIC MUD ALL OVER YOU SAID HE IT REMINDED ME OF THE OLD GREEN BAYDETROIT FOOTBALL GAMES BUT A WINNER HE SMILED WHEN HE SAID IT SATURDAY NIGHT'S CONTEST HERE MATCHED THE TWO TEAMS THAT HAVE DONE MOST TO BRING ON THE BIGD ERA SEATTLE'S CONTRIBUTION TO THE ART IS AN ALLCOURT SWARM THAT AIMS TO MAKE THE FLOOR'S PERIPHERY AS TREACHEROUS AS THE AREA UNDER THE BASKET THE SONICS LEAD THE LEAGUE IN STEALS AND WOULD IN PESTERS TOO IF THERE WAS SUCH A CATEGORY BEFORE WE PLAY THEM I HAVE TO REMIND MY PLAYERS THAT THEY CAN'T COVER A GUY ALL FOUR WAYS FRONT AND BACK LEFT AND RIGHT SAID TOMJANOVICH BUT THEY TRY HOUSTON'S DEFENSE IS CENTERCENTERED THE CENTER BEING HAKEEM WHEREVER HIS MAN MAY BE HE USUALLY FINDS A WAY TO BE THERE WHEN ANY FOE HEADS BASKETWARD STRONG AND AGILE HE'S A SHOTBLOCKER EXTRAORDINAIRE HE HAD SIX SATURDAY BUT EVEN WHEN HE DOESN'T GET THE SWAT HE'S DISCOURAGING IN OTHER WAYS HE MAKES YOU DO THINGS YOU DON'T WANT TO DO SAYS SONICS' GUARD RICKY PIERCE HAKEEM'S BEEN MEAN FOR SOME TIME BUT HE'S GETTING MORE HELP THIS TERM ONE FRONTCOURT MATE THE STEADY VETERAN OTIS THORPE IS HAVING HIS BEST ALLAROUND SEASON AND THE OTHER SECONDYEAR MAN ROBERT HORRY HAS IMPROVED FROM A GOOD ROOKIE YEAR THE 6FOOT10 HORRY ESPECIALLY HAS COME AROUND DEFENSIVELY A RARE BIG MAN WITH QUICK HANDS HE WAS NINTH IN LEAGUE STEALS BEFORE SATURDAY THE MATCHUP THAT SET THE GAME'S TONE WAS HORRY ON DETLEF SCHREMPF ONE OF THE SONICS' KEY OFFSEASON ACQUISITIONS THE OTHER WAS RANGY GUARD KENDALL GILL SCHREMPF HAD GIVEN SEATTLE THE OUTSIDE SHOOTING IT LACKED IN BOWING TO PHOENIX IN THE WESTERN CONFERENCE FINAL LAST SEASON BUT HOUNDED BY HORRY HE WAS 0FOR4 IN THE FIRST QUARTER AS THE ROCKETS TOOK A 2418 LEAD AND WAS JUST 4FOR14 FOR THE EVENING INDEED THE ROCKETS' BIG MEN EMBARRASSED THEIR SEATTLE COUNTERPARTS AT BOTH ENDS OF THE COURT 6FOOT10 SHAWN KEMP THE SONICS' LEADING SCORER WENT 3FOR13 FROM THE FIELD AND SAM PERKINS THEIR CENTER WAS 0FOR8 BY CONTRAST OLAJUWON SCORED 23 POINTS ON 9FOR14 SHOOTING WHILE THORPE ALSO 9FOR14 HAD 20 IT'S A RARE NBA GAME THAT ISN'T COMPETITIVE AT SOME POINT AND THIS ONE WAS NO EXCEPTION HOUSTON LED 4332 AT THE HALF BUT EARLY IN THE THIRD QUARTER LOST ITS COOL AND ALMOST ITS LEAD ITS HOTTEST HEAD WAS ON THE SHOULDERS OF GUARD VERNON MAXWELL TIRED OF SONIC PESTERING HE WENT BALLISTIC OVER A REF'S CALL AND PICKED UP THE TWO TECHNICAL FOULS THAT ADD UP TO BANISHMENT THE RESULTING SPATE OF FREE THROWS HELPED PULL THE VISITORS TO WITHIN A POINT 4645 HOUSTON SCORED 11 OF THE NEXT 15 THOUGH AND WASN'T THREATENED THEREAFTER BUT IT WAS A GOOD WIN OVER A GOOD TEAM AND TOMJANOVICH WAS QUICK TO DRAW A MORAL WHILE ACKNOWLEDGING THAT HIS BOYS PROBABLY WON'T WIN 19 OF EVERY 20 AND THAT NBA CHAMPIONSHIPS ARE WON IN JUNE NOT DECEMBER HE NOTED WHEN THE PLAYOFFS COME WE'LL DRAW ON WHAT WE DID TONIGHT AND A NICE PICTURE IT WAS 9312130028 931213 VIETNAM SEEKS TO NORMALIZE US RELATIONS PRIME MINISTER SAYS MOVE COULD AID DEVELOPMENT OF COUNTRY'S ECONOMY BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL VIETNAM IS MAKING A FRESH OVERTURE FOR NORMALIZED RELATIONS WITH WASHINGTON A MONTH AFTER BLOCKING A DEMOCRACY CONFERENCE AND PRESSURING AN AMERICAN ORGANIZER TO LEAVE THE COUNTRY PEOPLE WHO CLOSELY FOLLOW VIETNAM SAY THE TANGLED SIGNALS REFLECT THE CONFLICT BETWEEN THE HARDLINE INSTINCTS OF HANOI'S COMMUNIST GOVERNMENT AND THE LIBERALIZATION THAT IS NECESSARY FOR THE SOUTHEAST ASIAN COUNTRY TO PURSUE ITS AGENDA OF ECONOMIC REFORM UNDERSCORING ITS AMBITION TO DEVELOP VIETNAMESE PRIME MINISTER VO VAN KIET LAST WEEK TOLD THE OPENING OF THE NINTH NATIONAL ASSEMBLY THAT WE INTEND TO CLOSE THE PAST AND LOOK FORWARD TO THE FUTURE THAT FUTURE HE SAID OUGHT TO INCLUDE OPENING RELATIONS WITH THE US WHICH CUT OFF TIES IN APRIL 1975 WHEN NORTH VIETNAM OVERRAN SAIGON AND UNIFIED THE COUNTRY AFTER A DRAWNOUT WAR WITH THE USBACKED SOUTH TRADE ALSO HAS BEEN SUSPENDED WE ARE READY TO ESTABLISH NORMAL RELATIONS ON THE BASIS OF EQUALITY MUTUAL RESPECT AND NO PRECONDITIONS MR KIET SAID IN PREPARED REMARKS THAT SUITS NOT ONLY THE NEEDS AND INTERESTS OF THE TWO PEOPLES BUT IT ALSO BENEFITS PEACE SECURITY AND STABILITY IN THE REGION NORMALIZED RELATIONS WOULD SPEED THE COUNTRY'S DEVELOPMENT MR KIET SAID VIETNAM BEGAN MOVING TOWARDS A MARKET ECONOMY IN THE LATE 1980S BUT WASHINGTON HAS INSISTED IT WON'T NORMALIZE RELATIONS UNTIL IT GETS A FULL ACCOUNTING OF MORE THAN 1600 AMERICAN SERVICEMEN STILL LISTED AS MISSING IN ACTION FROM THE VIETNAM WAR LIKE MANY ASIAN COUNTRIES THAT HAVE ADVANCED ECONOMICALLY IN THE PAST VIETNAM IS STRUGGLING TO PRESERVE ITS AUTHORITARIAN POLITICAL CULTURE IN THE LATEST SIGN THAT OPEN CRITICISM CAN BE UNWELCOME THE GOVERNMENT RECENTLY BLOCKED A PRODEMOCRACY GROUP'S PLAN TO HOLD AN USUAL MEETING IN HANOI OF DISSIDENTS AND FORMER US OFFICIALS TO DISCUSS VIETNAM'S DEVELOPMENT THE CONFERENCE ORIGINALLY SCHEDULED FOR NOV 27 WAS TO BE SPONSORED BY A GROUP CALLED THE MOVEMENT TO UNITE THE PEOPLE AND BUILD DEMOCRACY ITS ORGANIZERS INCLUDED THREE VIETNAMESE DEMOCRACY ADVOCATES AND A MINNEAPOLIS LAWYER STEPHEN B YOUNG THE MEETING WAS AN AUDACIOUS SCHEME TO BRING TOGETHER MANY OF THE FORMER US OFFICIALS WHO LED THE WAR EFFORT AGAINST NORTH VIETNAM AMONG THE INVITED GUESTS WERE RETIRED GEN WILLIAM WESTMORELAND AND FORMER CENTRAL INTELLIGENCE AGENCY DIRECTOR WILLIAM COLBY MR YOUNG MAILED IN NOVEMBER SIMPLY OUTLINED A ONEDAY CONFERENCE OF PRESENTATIONS WITH TITLES LIKE VIETNAM'S POSITION IN THE WORLD AND AMERICA AS VIETNAM'S STRATEGIC ALLY ALTHOUGH MR YOUNG WROTE IN A JULY 13 WASHINGTON POST OPINION ARTICLE THAT VIETNAM'S POLITBURO HAD AGREED TO WORK WITH THE MOVEMENT TO UNITE THE PEOPLE NOT ALL OF THE AUTHORITIES GOT THE MESSAGE A MONTH AGO THE VIETNAMESE WERE DETAINED MR YOUNG WAS FORCED TO SIGN A CONFESSION IN WHICH HE SAID HE ADMITTED THAT DEMOCRACY IS NOT APPLICABLE AT THIS TIME HE ALSO WAS PRESSURED TO LEAVE THE COUNTRY BUT HE SAYS HE HAD PLANNED TO DEPART ANYWAY AND INDEED WAS DELAYED BY A DAY'S DETENTION BEFORE HE SIGNED THE CONFESSION AND HAS RECEIVED NO INDICATION HE WOULDN'T BE PERMITTED BACK IN HANOI WE THOUGHT EVERYTHING WAS GREASED AND THERE WAS A VERY HIGH PROBABILITY OF A STEPBYSTEP APPROACH TOWARDS DEMOCRACY SAID MR YOUNG WHO SAYS HE WORKED FOR THE US AGENCY FOR INTERNATIONAL DEVELOPMENT IN SOUTH VIETNAM DURING THE 1970S HE CONTENDED THOUGH THAT A RIFT BETWEEN HARDLINE LEADERS IN VIETNAM INCLUDING MR KIET AND REFORMIST ELEMENTS WAS BEHIND THE CONFERENCE'S ABRUPT CANCELLATION MR YOUNG SAID HE BELIEVES MR KIET'S PITCH FOR TIES WITH THE US IS MEANT AS A KIND OF APPEASEMENT TO THE REFORMISTS WHO WOULD HAVE BENEFITED BY THE DEMOCRACY CONFERENCE A VISIT BY FORMER US OFFICIALS NO MATTER HOW UNLIKELY COULD IMPROVE RELATIONS MR YOUNG BELIEVED MR COLBY CONTACTED IN WASHINGTON SAID HE WOULD HAVE BEEN WILLING TO PARTICIPATE IN THE CONFERENCE HAD IT BEEN STAGED THE VIETNAMESE ARE IN THE PROCESS OF UNDERSTANDING THEY HAVE TO BE INVOLVED IN THE MODERN WORLD HE SAID BUT HE SAID I DIDN'T THINK THE CONFERENCE WAS ALL THAT REALISTIC BECAUSE I THOUGHT THE AUTHORITIES WOULD STOMP ON IT AT SOME POINT AND THEY DID UNUSUALLY THOUGH VIETNAMESE NEWSPAPERS PICKED UP REPORTS THAT THE CONFERENCE HAD BEEN QUASHED AND SAID FUTURE CONFERENCES SHOULD BE ORGANIZED WITH THE GOVERNMENT'S CONSENT THAT DREW ATTENTION TO THE CONFERENCE AND PEOPLE WHO LIVE IN HANOI SAID SUGGESTS THAT CONTROVERSIAL TOPICS MAY BE BROACHED WITHIN CAREFULLY DELINEATED FRAMEWORKS BUSINESSPEOPLE WHO SPECIALIZE IN VIETNAM SAID THE COUNTRY ISN'T YET READY TO JETTISON ITS POLITICAL CONTROL AS PART OF ITS ECONOMIC REFORMS THE BIGGEST PROBLEM VIETNAM HAS SAYS LAWRENCE BRAHM A CONSULTANT WITH NAGA GROUP IN HONG KONG IS TOO MANY PEOPLE ARE GOING IN TO TELL THE VIETNAMESE WHAT TO DO THE WORLD SHOULD JUST LET THE VIETNAMESE GET ON WITH IT THEMSELVES 9312130027 931213 HAZARDOUSWASTE INCINERATORS FACING OVERCAPACITY SEEK REGULATORS' HELP BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC AND OTHER OPERATORS OF HAZARDOUSWASTE INCINERATORS ARE VIGOROUSLY LOBBYING ENVIRONMENTAL PROTECTION AGENCY CHIEF CAROL BROWNER FOR REGULATORY HELP WHICH COULD BE THE ONLY WAY TO HALT A RAPID DETERIORATION IN THE INDUSTRY'S FINANCIAL CONDITION OPERATORS OF COMMERCIAL HAZARDOUSWASTE INCINERATORS WHO HAD BEEN ENCOURAGED BY EPA OFFICIALS TO BUILD INCINERATORS IN RECENT YEARS ARE SUFFERING AS A RESULT OF LOWERTHANEXPECTED WASTE VOLUMES AND A STEEP DROP IN PRICES FOR BURNING TOXIC MATERIALS AMONG THE REASONS MANUFACTURERS HAVE FOUND WAYS TO SHARPLY REDUCE THEIR TOXICWASTE OUTPUT AND LESSREGULATED CEMENT KILNS HAVE BEEN DIVERTING AND BURNING INCREASING AMOUNTS OF WASTE AT A NOV 23 MEETING ARRANGED BY WMX CHAIRMAN DEAN L BUNTROCK AND ATTENDED BY EXECUTIVES OF FIVE OTHER INCINERATION COMPANIES INDUSTRY OFFICIALS ASKED MS BROWNER TO USE EPA POWER TO PUSH MORE VARIETIES OF WASTE TOWARD INCINERATORS AND TO CRACK DOWN ON CEMENT KILNS THE EXECUTIVES ALSO ESTIMATED FOR THE EPA THE EXTENT OF THE INDUSTRY'S OVERINVESTMENT IN HAZARDOUSWASTE INCINERATORS BASED ON TODAY'S DEMAND ABOUT 280 MILLION AND RISING OR 140000 TONS A YEAR OF EXCESS CAPACITY ACCORDING TO OFFICIALS OF WMX THE LOBBYING EFFORT WHICH IS EXPECTED TO CONTINUE ILLUSTRATES A GROWING PROBLEM FOR THE EPA IT REGULATES NOT ONLY THE QUALITY OF THE ENVIRONMENT BUT ALSO A HUGE AND EXPANDING INDUSTRY WHOSE LONGTERM INVESTMENTS ARE ALMOST TOTALLY RELIANT ON REGULATION WHICH CAN CHANGE RAPIDLY WMX OF OAK BROOK ILL THE WORLD'S BIGGEST WASTE CONCERN ALREADY WROTE DOWN ITS INCINERATORS AND OTHER HAZARDOUSWASTE ASSETS BY 550 MILLION IN THE THIRD QUARTER THAT LED TO A 363 MILLION CHARGE BY ITS CHEMICAL WASTE MANAGEMENT INC UNIT WITHOUT HELP FROM THE EPA ACCORDING TO PAT PAYNE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNIT THE INDUSTRY FACES SOME MORE WRITEOFFS IF IT CONTINUES INCINERATORS WILL CLOSE BECAUSE SUPPLY AND DEMAND WORKS CUTTING COSTS TO ADJUST TO LOWER VOLUME AND PRICES IS AT BEST A PARTIAL REMEDY FOR INCINERATION COMPANIES THAT'S BECAUSE MOST OF THEIR COSTS ARE FIXED UP FRONT IN BUILDING THE UNITS AND WINNING NEW CUSTOMERS WOULD REQUIRE NEW REGULATIONS SINCE WASTE GENERATORS TYPICALLY STICK WITH EVEN CHEAPER DISPOSAL OPTIONS SUCH AS DUMPS UNTIL THEY ARE FORCED TO CHANGE IN RECENT WEEKS PRICES FOR INCINERATION APPEARED TO BE FALLING FURTHER ACCORDING TO LEONE T YOUNG AN INDUSTRY ANALYST AT SMITH BARNEY SHEARSON INC IN NEW YORK NICHOLAS PAPPAS PRESIDENT AND CHIEF OPERATING OFFICER OF ROLLINS ENVIRONMENTAL SERVICES INC WHICH HAS THE LARGEST SHARE OF THE COMMERCIAL INCINERATION MARKET SAID THAT CEMENT KILNS WHICH DOMINATE THE LIQUIDWASTE MARKET ARE TAKING INCREASING AMOUNTS OF SOLID WASTE TOO EXECUTIVES OF WESTINGHOUSE ELECTRIC CORP AND UNION PACIFIC CORP WHICH BOTH HAVE HAZARDOUSWASTE UNITS ALSO ATTENDED THE NOVEMBER MEETING MS BROWNER WOULDN'T COMMENT ON THE MEETING AND EPA OFFICIALS WOULDN'T SAY WHETHER THEIR PLANS TO ALTER REGULATION OF HAZARDOUSWASTE INCINERATION WOULD BE TO THE INDUSTRY'S LIKING IN THEIR OPINION THEY HAVE A GREATER BURDEN THAN THE KILNS DO AN AGENCY SPOKESMAN SAID KILN OPERATORS SAY THEY BURN WASTE EFFICIENTLY AND ABIDE BY REGULATIONS IN MAY MS BROWNER FRIGHTENED EVERYONE IN THE BUSINESS OF BURNING HAZARDOUS WASTE BY CALLING FOR A MORATORIUM ON NEW INCINERATION CAPACITY AND TOUGHER REGULATIONS ON EXISTING UNITS BUT SINCE THEN AS THE MARKET HAS WORSENED THE EPA HASN'T SPELLED OUT PRECISELY HOW THAT INITIATIVE WOULD WORK OR WHO WOULD BENEFIT 9312130026 931213 WORLD MARKETS GLOBAL TRADE PACT COULD GIVE A STRONG BOOST TO MANY STOCK MARKETS THROUGHOUT EUROPE BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON STOCK STRATEGISTS ARE TURNING THEIR ATTENTION TO THE QUESTION OF JUST HOW GOOD GATT WOULD BE FOR EUROPE'S EQUITY MARKETS CERTAINLY THE ANSWER LIKE THE GENERAL AGREEMENT ON TARIFFS AND TRADE ITSELF IS HIGHLY CONTINGENT ON THE EXACT OUTCOME OF NEGOTIATIONS ON A TREATY TO LIBERALIZE GLOBAL TRADE AND BY NO MEANS IS IT CERTAIN THAT A FULLY FLEDGED DEAL WILL BE FINISHED BY WEDNESDAY'S DEADLINE YET THE PROSPECTS OF AT LEAST A PARTLY SUCCESSFUL ACCORD ARE STARTING TO BE FACTORED INTO STOCKMARKET PRICES ACROSS EUROPE THE REGION WIDELY EXPECTED TO GAIN MOST FROM MORE LIBERALIZED TRADE BERT JANSEN CHIEF STRATEGIST AT PARIBAS CAPITAL MARKETS IN LONDON SAID MANY EUROPEAN COMMUNITY COUNTRIES ARE LIKELY TO BE BIG WINNERS IN PART BECAUSE THE LARGEST TRADE DISTORTIONS SUCH AS COSTLY SUBSIDIES TO INEFFICIENT INDUSTRIES ARE FOUND IN THE REGION A SUCCESSFUL CONCLUSION TO THE TALKS COULD PROVIDE A PSYCHOLOGICAL BOOST TO THE MARKETS IF ONLY BECAUSE THE ALTERNATIVE WOULD BE FEARS OF INCREASING PROTECTIONISM HE SAID BUT HE ALSO POINTED OUT THAT FAILURE OF THE TALKS COULD INCREASE FEARS OF RENEWED INFLATIONARY PRESSURES DUE TO POTENTIAL TARIFF INCREASES AND A SLACKENING OF COMPETITIVE PRICERESTRAINING FORCES JAMES CAPEL & CO HAS ASSEMBLED A GOOD GATT GUIDE OF COUNTRIES THAT WILL BENEFIT MOST FROM A SUCCESSFUL CONCLUSION OF THE NEGOTIATIONS TOPPING THEIR LIST IS FRANCE WHICH SHOULD BE HELPED BY LOWER CONSUMER PRICES AND LOWER GOVERNMENT SUBSIDIES PAID TO THE AGRICULTURAL SECTOR THE PARIS STOCK MARKET IS THE LAGGARD OF THE CONTINENT RISING 18 THIS YEAR COMPARED WITH EUROPE'S 31 AVERAGE GAIN LOOKING AT INDUSTRIES RATHER THAN COUNTRIES SOME ANALYSTS SAID THE EUROPEAN SERVICE SECTOR STANDS TO BE A MAIN BENEFICIARY OF A GATT DEAL BY SOME ACCOUNTS EUROPEAN COUNTRIES MAKE UP ALMOST TWOTHIRDS OF THE 900 BILLION GLOBAL EXPORT MARKET IN SERVICES AS IT SEEMS LIKELY THAT GATT WILL FOR THE FIRST TIME PROVIDE RULES TO COVER SERVICES A MORE LIBERAL ENVIRONMENT WOULD BOOST THE INDUSTRY ACROSS EUROPE SERVICES MAKE UP ABOUT 70 OF THE EC'S GROSS DOMESTIC PRODUCT THE CHEMICAL INDUSTRY ALSO IS LIKELY TO REAP REWARDS OF A GATT DEAL ANALYSTS SAID THOUGH THE BENEFITS WOULD COME OVER TIME STRETCHING WELL INTO THE 21ST CENTURY GATT NEGOTIATORS ARE WORKING TO HARMONIZE TARIFFS ON CHEMICALS AND CUT THEM ON PHARMACEUTICALS ALASDAIR NISBET OF UBS LTD IN LONDON ESTIMATED A FREER TRADE SITUATION SHOULD BOOST THE WORLD CHEMICAL BUSINESS BY 17 BILLION OVER THE NEXT 10 YEARS FURTHERMORE INCREASED PATENT PROTECTION TO COVER THE DEVELOPING WORLD WHERE PROPERTY RIGHTS ARE WIDELY IGNORED WOULD BENEFIT THE CHEMICAL INDUSTRY BY 8 BILLION IN THE DECADE WITH 3 BILLION GAINED BY WESTERN EUROPEAN COMPANIES ALONE PETER OPPENHEIMER INVESTMENT STRATEGIST AT JAMES CAPEL & CO IN LONDON SAID A RESOLUTION OF GATT NEGOTIATIONS COULD NOT COME AT A BETTER TIME FOR MARKETS BECAUSE IT WOULD BOOST ECONOMIC RECOVERY WITHOUT STOKING INFLATION OR WORSENING BUDGETDEFICIT PROBLEMS ACROSS MUCH OF THE DEVELOPED WORLD BUT DAVID ROCHE CHIEF GLOBAL STRATEGIST AT MORGAN STANLEY INTERNATIONAL LTD IN LONDON IS FOCUSING ON WHAT HAPPENS IF THE AGREEMENT COLLAPSES WHAT WORRIES ME HE SAID IS THAT THE BEST OUTCOME FOR MARKETS SUCH AS A SUCCESSFUL CONCLUSION OF GATT WILL NOT BE A POSITIVE SURPRISE FOR MARKETS BUT A BAD OUTCOME WOULD BE A NASTY ONE TOKYO STOCKS GAINED 11 FRIDAY BUT ENDED BELOW INTRADAY HIGHS AS THE JAPANESE CENTRAL BANK'S QUARTERLY SURVEY OF BUSINESS SENTIMENT WASN'T DISMAL ENOUGH TO CONVINCE INVESTORS THAT INTEREST RATES WILL FALL FURTHER HONG KONG STOCKS JUMPED 24 TO A FOURTH CONSECUTIVE RECORD LIFTING THIS YEAR'S GAIN TO 86 LONDON SHARES ROSE AFTER WIDE SWINGS AS THE MARKET TRIED TO FOLLOW FUTURES TRADING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11025 UP 030 REFLECTING INCREASES IN ASIA/PACIFIC MARKETS AND DECLINES IN MARKETS IN EUROPE AND THE AMERICAS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11182 UP 344 OR 317 WITH KEPPEL OF SINGAPORE POSTING A 583 GAIN IN ITS LOCAL CURRENCY APPAREL RETAILING STOCKS TRAILED AT 9178 DOWN 128 OR 138 WITH AOYAMA TRADING OF JAPAN SLIDING 734 IN LOCAL CURRENCY SHARE PRICES STRENGTHENED STEADILY FUELED BY ENCOURAGING PARLIAMENTARY TESTIMONY BY JAPANESE GOVERNMENT OFFICIALS ABOUT MOVES TO BOOST THE STOCK MARKET UNTIL THE RELEASE OF THE BANK OF JAPAN FINDINGS OF DECLINING BUSINESS SENTIMENT CONSIDERED INSUFFICIENT TO PROMPT THE CENTRAL BANK TO CUT ITS DISCOUNT RATE SOON AFTER THE STOCK MARKET CLOSED JAPAN'S ECONOMIC PLANNING AGENCY SAID INFLATIONADJUSTED GROSS DOMESTIC PRODUCT ROSE AN UNEXPECTEDLY STRONG 05 IN THE JULYSEPTEMBER QUARTER FOR AN ANNUALIZED 2 EXPANSION IN HONG KONG THE HANG SENG INDEX SURGED 23785 TO 1022811 THE FIRST CLOSE EVER ABOVE 10000 LAST WEEK ALONE THE INDEX JUMPED 93376 POINTS OR 10 THE RALLY WAS SUSTAINED BY STRONG GAINS AMONG HONG KONG SHARES THAT ALSO TRADE IN LONDON AND BY A CONTINUED BUYING SPREE BY FOREIGN INVESTORS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 103 POINTS TO 32613 THE FT 30STOCK INDEX EASED 33 POINTS TO 24596 VOLUME WAS 8625 MILLION SHARES COMPARED WITH 8843 MILLION SHARES A DAY EARLIER A SHARP RISE IN THE DECEMBER FUTURES CONTRACT SPARKED BUYING IN THE STOCK MARKET WHERE PRICES THEN SLID WHEN THE GAP NARROWED IN FRANKFURT AFTER SCORING A RECORD THE PREVIOUS DAY STOCK PRICES DROPPED THE DAX 30STOCK INDEX FELL 1467 POINTS TO 216113 ON JITTERS ABOUT HOLDING POSITIONS THROUGH A WEEKEND IN PARIS PREWEEKEND LIGHTENING OF HOLDINGS AND SOME PROFITTAKING PUSHED STOCKS DOWN BROADLY IN SINGAPORE SHARES SURGED 25 TO A NEW HIGH IN HEAVY DEALINGS LED BY STRONG BUYING OF BANK STOCKS COMPUTERGUIDED BUYING BY US AND JAPANESE FUNDS STOKED ENTHUSIASM FOR BLUE CHIPS PARTICULARLY FINANCIAL SHARES AND IN SEOUL STOCKS SOARED 21 BOOSTED BY INSTITUTIONAL INVESTORS' BUYING OF BLUE CHIPS THOUGH DECLINING ISSUES SURPASSED ADVANCING ISSUES 529372 AS SMALL STOCKS WEAKENED HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9312130025 931213 YAMAHA SETS VENTURE WITH CHINESE CONCERN FOR MOTORCYCLE PARTS SPECIAL TO THE WALL STREET JOURNAL TOKYO YAMAHA MOTOR CO ONE OF JAPAN'S LEADING MAKERS OF MOTORCYCLES SAID IT WILL PRODUCE ELECTRIC PARTS FOR MOTORCYCLES IN CHINA IN A VENTURE WITH LOCAL COMPANIES THE MOVE WILL ALLOW YAMAHA TO PROCURE PARTS IN A TIMELY MANNER FOR TWO MOTORCYCLE PLANTS THAT THE COMPANY PLANS TO OPEN IN COMING YEARS A SPOKESMAN SAID IN THE WAKE OF THE APPRECIATION BY THE YEN THIS YEAR LOCAL PROCUREMENT WILL ALSO LOWER THE COSTS OF MAKING MOTORCYCLES BY AVOIDING THE RISING COSTS OF EXPORTING PARTS FOR PAYMENT IN FOREIGN CURRENCIES HE SAID LOCAL PRODUCTION IN CHINA TO FACILITATE MARKETING AND AVOID THE STRONGER YEN HAS ACCELERATED THIS YEAR JAPAN'S OTHER LEADING MOTORCYCLE MAKERS SUZUKI MOTOR CO AND HONDA MOTOR CO ALSO HAVE PRODUCTION IN CHINA NOW YAMAHA'S JOINT VENTURE SICHUAN HUACHUAN YAMAHA MOTOR PARTS MANUFACTURING CO WILL GET UNDER WAY IN SICHUAN PROVINCE IN SOUTHERN CHINA IN FEBRUARY PRODUCTION IS DUE TO START IN APRIL 1995 FOR PARTS TO SUPPLY TWO YAMAHA MOTORCYCLE PLANTS THAT ARE SET TO START OPERATION IN MAY 1994 AND IN EARLY 1996 YAMAHA CURRENTLY BUILDS MOTORCYCLES AT FOUR PLANTS OF JIANSHE MACHINE TOOL FACTORY AN AFFILIATE OF THE SICHUAN GOVERNMENT BY USING PARTS FROM JAPAN PARTS TO BE MADE BY THE NEW COMPANY WILL ALSO GO TO JIANSHE'S PLANTS IN THE FUTURE THE SPOKESMAN SAID THE VENTURE WILL HAVE CAPITAL OF 148 MILLION JIANSHE MACHINE TOOL FACTORY AND ITS AFFILIATE CHONGQUING HUACHUAN MACHINERY FACTORY WILL TOGETHER HOLD A 50 STAKE IN THE NEW COMPANY WHILE YAMAHA MOTOR AND ITS SUBSIDIARY PARTS MAKER IIC LTD WILL HOLD THE REMAINING 50 9312130023 931213 WHO'S NEWS NFO RESEARCH INC NFO RESEARCH INC GREENWICH CONN PATRICK G HEALY 38 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MARKET RESEARCH FIRM MR HEALY SUCCEEDS ALAN L HARVEY 49 WHO LEFT TO PURSUE PERSONAL INTERESTS MR HEALY HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF INTEREP RADIO STORE A RADIO ADVERTISING SALES FIRM 9312130022 931213 WHO'S NEWS GATX CORP GATX CORP CHICAGO DEBORAH M FRETZ 45 YEARS OLD WAS ELECTED TO THE BOARD OF THIS RAIL CAR AND AIRCRAFT LEASING COMPANY THAT ALSO OPERATES SHIPPING TERMINALS AND PIPELINE FACILITIES MS FRETZ IS PRESIDENT OF SUN PIPE LINE CO AND SUN MARINE TERMINALS BOTH UNITS OF SUN CO HER ELECTION GIVES THE BOARD 11 MEMBERS 9312130021 931213 HUD AVERTS CLASH WITH FREDDIE MAC FANNIE MAE OVER LOANPURCHASE LIMITS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT BACKED AWAY FROM A CLASH WITH FREDDIE MAC AND FANNIE MAE OVER THE LIMITS ON THE SIZE OF LOANS THEY PURCHASE FREDDIE MAC SHORTHAND FOR THE FEDERAL HOME LOAN MORTGAGE CORP AND FANNIE MAE THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ARE CONGRESSIONALLY CHARTERED SHAREHOLDEROWNED COMPANIES WITH THE MISSION OF ASSISTING HOUSING THEY PROVIDE LIQUIDITY FOR THE MORTGAGE MARKET BY BUYING MORTGAGES CURRENTLY NO LARGER THAN 203150 FOR CONVENTIONAL MORTGAGES ON SINGLEFAMILY HOMES AND PACKAGING THEM INTO SECURITIES LOANS ABOVE THE THRESHOLDS GENERALLY COST BORROWERS MORE AND THE LOAN LIMITS ARE AIMED AT CONCENTRATING THE COMPANIES' RESOURCES ON LOWERPRICED HOUSING IN A LETTER LAST FRIDAY TO FREDDIE MAC CHAIRMAN LELAND BRENDSEL HUD SECRETARY HENRY CISNEROS SAID HIS AGENCY HAS REGULATORY RESPONSIBILITY OVER FREDDIE MAC AND FANNIE MAE IN CERTAIN AREAS BUT ACKNOWLEDGED THAT THE ISSUE OF THE FIRMS' MORTGAGELOAN PURCHASE LIMITS IS NOT SUCH AN AREA A WEEK EARLIER HUD FIRED OFF A NEWS RELEASE URGING FREDDIE MAC AND FANNIE MAE TO LOWER THEIR LOANPURCHASE LIMITS FOR 1994 TO REFLECT A DECLINE IN A HOUSING PRICE INDEX BY NOT REDUCING THEIR LOAN LIMITS FANNIE MAE AND FREDDIE MAC ARE DILUTING THEIR FOCUS ON PROVIDING REQUIRED PUBLICPURPOSE BENEFITS TO LOWERINCOME BORROWERS MR CISNEROS SAID IN A STATEMENT ISSUED AFTER FREDDIE MAC SAID IT WAS LEAVING ITS LIMIT UNCHANGED AND FANNIE MAE INDICATED IT WAS INCLINED TO DO THE SAME MR CISNEROS SAID IN HIS INITIAL STATEMENT THAT HUD HAS GENERAL REGULATORY RESPONSIBILITY OVER THE TWO COMPANIES AND INCLUDES INSURING THAT THE BENEFITS OF THEIR PROGRAMS ARE AVAILABLE TO LOW AND MODERATEINCOME AMERICANS RESIDENTS OF URBAN NEIGHBORHOODS AND OTHER UNDERSERVED BORROWERS BUT IN LAST FRIDAY'S LETTER TO MR BRENDSEL SECRETARY CISNEROS SAID IN SOME AREAS OF OUR RELATIONSHIP WE HAVE REGULATORY RESPONSIBILITIES AND OVERSIGHT WE RECOGNIZE THAT THIS IS NOT SUCH AN AREA OUR STATEMENT WAS MADE IN CONCERT WITH OUR GENERAL VIEWS OF THE NEED TO ENSURE THAT AN APPROPRIATE PORTION OF THE ACTIVITIES OF FREDDIE MAC BENEFIT LOW AND MODERATEINCOME AND OTHER UNDERSERVED BORROWERS DAN DRISCOLL FREDDIE MAC'S VICE PRESIDENT FOR CORPORATE COMMUNICATIONS SAID MR BRENDSEL PERSONALLY HAS ASSURED MR CISNEROS OF FREDDIE MAC'S STRONG COMMITMENT TO LOWINCOME AND MODERATEINCOME HOUSING IT SEEMS TO US THE MATTER IS CLOSED SAID MR DRISCOLL WHO REPEATED FREDDIE MAC'S PREVIOUSLY STATED INTENT TO LEAVE UNCHANGED ITS LOANPURCHASE LIMIT FOR 1994 MR CISNEROS'S ORIGINAL STATEMENT SURPRISED FREDDIE MAC AND FANNIE MAE AS WELL AS OTHER MORTGAGEMARKET PLAYERS IN RECENT DAYS THE HUD SECRETARY HAS BEEN EXHORTED BY SUCH PARTIES AS MORTGAGE BANKERS AND SEVEN MEMBERS OF THE SENATE BANKING COMMITTEE TO BACK OFF FROM THE POSITION THAT THE LOANPURCHASE LIMITS SHOULD BE LOWERED THE SENATORS WARNED MR CISNEROS IN A LETTER LAST WEEK THAT LOWERING THE MORTGAGELOAN LIMIT WOULD RESULT IN LESS NOT MORE LOWERINCOME AFFORDABLE HOUSING AND CENTRAL CITIES BUSINESS VOLUME FOR FANNIE MAE AND FREDDIE MAC AND WOULD PLACE AN OPERATIONAL COST BURDEN ON MORTGAGE LENDERS IN HIS LETTER TO MR BRENDSEL MR CISNEROS SAID IN PART THAT WE UNDERSTAND THAT THE CONFORMINGLOAN LIMIT ISSUE IS A COMPLEX ONE IN WHICH A NUMBER OF FACTORS COME INTO PLAY FANNIE MAE HASN'T YET ANNOUNCED A DECISION ON ITS 1994 MORTGAGELOAN PURCHASE LIMIT THE COMPANY'S EXPECTED DECISION THAT IT WILL LEAVE ITS LOAN LIMIT UNCHANGED COULD BE ANNOUNCED AS EARLY AS TODAY 9312130020 931213 TECHNOLOGY & ENVIRONMENT SALES OF APPLE'S HANDHELD COMPUTER HAVE WEAKENED SINCE ITS INTRODUCTION BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF APPLE COMPUTER INC'S NEWTON MESSAGEPAD HANDHELD COMPUTER HAVE SLOWED CONSIDERABLY ACCORDING TO DISTRIBUTORS AND STORES THE FALLOFF COMING AFTER STRONG INITIAL SALES FOLLOWS A PATTERN THAT'S TYPICAL OF MANY NEW COMPUTER PRODUCTS BUT THE DECLINE RAISES FRESH CONCERNS ABOUT HOW LONG IT WILL TAKE FOR THIS NEW CLASS OF COMPUTERS WHICH APPLE CALLS PERSONAL DIGITAL ASSISTANTS TO TAKE OFF SOME ANALYSTS AND APPLE ITSELF SAY THE TRUE MEASURE OF APPLE'S SUCCESS IN THIS MARKET WON'T COME UNTIL AFTER NEW SOFTWARE APPEARS NEXT YEAR APPLICATIONS AND SERVICES ARE WHAT IS GOING TO REALLY KICKSTART THIS INDUSTRY MICHAEL SPINDLER APPLE'S CHIEF EXECUTIVE OFFICER SAID AT A MEETING WITH MORE THAN 1000 SOFTWARE DEVELOPERS LAST WEEK SALES OF THE MESSAGEPAD THE FIRST PRODUCT USING APPLE'S NEWTON TECHNOLOGY FOR SMALL COMPUTER DEVICES HAVE DWINDLED SINCE THE AUGUST INTRODUCTON AT SOME PROMINENT VENDORS COMPUTERWARE'S SAN FRANCISCO RETAIL STORE SAYS ITS MESSAGEPAD SALES FELL 50 IN NOVEMBER FROM A PEAK IN OCTOBER AND THAT SALES REMAIN LOW SO FAR THIS MONTH DESPITE THE CHRISTMAS SHOPPING ACTIVITY COMPUSA INC A DALLASBASED CHAIN OF COMPUTER SUPERSTORES SAYS MESSAGEPAD SALES HAVE BEEN ON A GRADUAL DECLINE SINCE SEPTEMBER COMPUTERLAND CORP A PLEASANTON CALIF RESELLER THAT SPECIALIZES IN CORPORATE CUSTOMERS SAYS IT HAS SOLD ONLY ABOUT 120 MESSAGEPADS SINCE AUGUST APPLE OFFICIALS HAD EXPECTED COMPUTERLAND TO SELL ABOUT 200 A MONTH SO THEY HAVE EXPRESSED DISAPPOINTMENT SAYS AHMAD MANSHOURI COMPUTERLAND'S SENIOR VICE PRESIDENT OF VENDOR RELATIONS OFFICIALS OF APPLE ACKNOWLEDGE THAT SALES HAVE LEVELED FROM THEIR PEAK BUT IN THE FIRST MONTH IT IS NORMAL YOU HAVE HUGE SALES RESULTS SAYS AN APPLE SPOKEWOMAN WHO ADDS THAT COMPANY HAS NOTICED A RISE IN SALES RECENTLY J&R COMPUTERWORLD A NEW YORK COMPUTER SUPERSTORE TO WHICH APPLE REFERRED A REPORTER REPORTS SALES HAVE PICKED UP SINCE A DIP IN NOVEMBER BUT THAT VOLUME HAS NOT RETURNED TO THE PEAK APPLE BASED IN CUPERTINO CALIF HAS SAID IT SOLD 50000 MESSAGEPADS AS OF MIDSEPTEMBER GASTON BASTIAENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVEELECTRONICS DIVISION SAYS HE IS PRETTY SATISFIED WITH MESSAGEPAD SALES WHICH HE SAYS HAVE EXCEEDED APPLE'S EXPECTATIONS VENDORS AND ANALYSTS SAY THE MESSAGEPAD'S POPULARITY COULD REBOUND AS PRICES FALL AND NEW SOFTWARE COMES OUT THE MESSAGEPAD'S 699 STREET PRICE PLUS ANOTHER 300 OR SO FOR COMMUNICATIONS ADDONS IS CONSIDERED PROHIBITIVE FOR THE MASS MARKET IT IS A GREAT GADGET FOR THE GUY WHO HAS EVERYTHING SAYS KAREN FULLER VICE PRESIDENT OF MARKETING AT MERISEL INC AN EL SEGUNDO CALIF COMPUTER DISTRIBUTION GIANT BUT IT'S A LITTLE TOO PRICEY TO BE A COMPLETE IMPULSE PURCHASE MERISEL'S MESSAGEPAD SALES HAVE BEEN TAPERING SINCE OCTOBER SHE ADDS MORE THAN 40 MESSAGEPAD SOFTWARE APPLICATIONS HAVE BEEN ANNOUNCED AND AT LEAST A DOZEN ARE EXPECTED TO BE SHIPPED BY YEAREND SAYS JAMES JOAQUIN APPLE'S NEWTON PRODUCTLINE MANAGER NEW INTRODUCTIONS INCLUDE SOFTWARE THAT LETS THE COMPUTER ACT AS A CUING DEVICE FOR SPEECHES LIKE A TELEPROMPTER AND A PROGRAM TO COMPILE EXPENSE ACCOUNTS ON THE GO AS WELL AS AN ELECTRONIC TOUR GUIDE THESE AND OTHER NEW PROGRAMS MIGHT HELP OFFSET THE NEGATIVE PUBLICITY THE MESSAGEPAD GOT AFTER EARLY USERS FOUND THAT IT CAN'T RECOGNIZE MANY HANDWRITTEN WORDS ANALYSTS SAY THE NEW APPLICATIONS ARE KEY TO APPLE MAKING MONEY ON NEWTON SINCE APPLE'S BUSINESS MODEL IS NOT TO MAKE MONEY ON HARDWARE THE NEWTON BOX ITSELF BUT TO LICENSE THE SOFTWARE SAYS BRUCE M LUPATKIN MANAGING DIRECTOR OF HAMBRECHT & QUIST 9312130019 931213 TECHNOLOGY & ENVIRONMENT MEDTRONIC TOPS ST JUDE OFFER FOR COMPANY BY THOMAS M BURTON AND ARTHUR BUCKLER STAFF REPORTERS OF THE WALL STREET JOURNAL MEDTRONIC INC UPPED THE ANTE IN A TAKEOVER BATTLE WITH ST JUDE MEDICAL INC OVER ELECTROMEDICS INC OFFERING 96 MILLION FOR THE COLORADO MANUFACTURER OF BLOODRECYCLING DEVICES USED IN SURGERY MINNEAPOLISBASED MEDTRONIC THE WORLD'S LEADING MAKER OF CARDIAC PACEMAKERS TOPPED A 90 MILLION OFFER MADE BY CROSSTOWN RIVAL ST JUDE THE WORLD'S LEADING MAKER OF MECHANICAL HEART VALVES LAST WEEK CASHRICH ST JUDE HAD ANNOUNCED A DEFINITIVE DEAL TO ACQUIRE ELECTROMEDICS THE NO 2 PLAYER IN A FASTGROWING FIELD NOW THAT DEAL IS APPARENTLY OFF WITH ELECTROMEDICS CHIEF FINANCIAL OFFICER RICHARD B CARLOCK SAYING THE COMPANY IS BOUND TO CONSIDER MEDTRONIC'S BID MEDTRONIC'S OFFER IS EITHER 675 FOR EACH ELECTROMEDICS SHARE OR SHARES OF MEDTRONIC STOCK RONALD A MATRICARIA ST JUDE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SIGNALED IN AN INTERVIEW THAT HE'S UNLIKELY TO FIRE A NEW SALVO IN THE FIGHT I'M NOT GOING TO GET INTO A CONTROLLEDAUCTION SITUATION MR MATRICARIA SAID ANYTHING ABOVE 90 MILLION ISN'T IN THE INTERESTS OF OUR SHAREHOLDERS AND MEDTRONIC HAS A HISTORY OF OVERPAYING MEDTRONIC IN RECENT YEARS HAS BEEN RAPIDLY DIVERSIFYING AND NOW MAKES A WIDE RANGE OF MOSTLY CARDIAC DEVICES IN PARTICULAR THE PROSPEROUS CONCERN MAKES BLOOD PUMPS OXYGENATORS AND BLOODMONITORING DEVICES USED IN CARDIAC SURGERY THAT BUSINESS WOULD APPEAR TO BE COMPATIBLE WITH THAT OF PARKER COLOBASED ELECTROMEDICS WHICH MAKES MACHINES TO PROVIDE SOCALLED AUTOLOGOUS TRANSFUSIONS DURING CERTAIN OPERATIONS BASICALLY THIS MEANS THAT A PATIENT'S OWN BLOOD IS EXTRACTED PURIFIED AND THEN PUMPED BACK INTO THE BODY THIS CAN ELIMINATE THE RISK OF INFECTIONS SUCH AS AIDS AND REDUCE THE COST OF SURGERY BECAUSE ADDITIONAL BLOOD MAY NOT BE NEEDED ST JUDE PRIMARILY MAKES HEART VALVES THOUGH IT HAS A SMALL BUSINESS OF MAKING PUMPS USED DURING OPERATIONS MR MATRICARIA WHO SIGNED ON WITH ST JUDE IN MARCH AFTER LEAVING AN EXECUTIVE POST AT ELI LILLY & CO HAS DECLARED AN INTENT TO DIVERSIFY HIS COMPANY ALSO ST JUDE HAS BEEN SITTING ON A PILE OF CASH ESTIMATED BY ANALYSTS AS EXCEEDING 350 MILLION IF ST JUDE DOESN'T MAKE A RENEWED BID IT STANDS TO COLLECT 3 MILLION AS ITS BREAKUP FEE RESULTING FROM THE POSSIBLE COLLAPSE OF THE AGREEMENT MEDTRONIC HAD TOUCHED OFF THE BIDDING WAR NOV 21 WITH AN OFFER TO ACQUIRE ELECTROMEDICS FOR 6125 A SHARE OR 862 MILLION WHILE ELECTROMEDICS' SALES AND EARNINGS ARE OFF THIS YEAR IT NEVERTHELESS PRESENTS AN ALLURING ACQUISITION OPPORTUNITY IN RECENT YEARS ITS BUSINESS HAS BEEN GROWING AT ABOUT 20 A YEAR THOUGH THIS YEAR'S COST PUSH AMONG HOSPITALS HAS HURT THE COMPANY'S BOTTOM LINE FOR INSTANCE IT HAD OPERATING EARNINGS IN THIS YEAR'S THIRD QUARTER OF TWO CENTS A SHARE COMPARED WITH FOUR CENTS A YEAR AGO THIS HAD TRIMMED ELECTROMEDICS' SHARE PRICE FROM ABOVE 6 EARLY THIS YEAR TO A LITTLE OVER 4 BEFORE THE BIDDING STARTED ON FRIDAY THE COMPANY'S SHARES CLOSED AT 6875 UP 625 CENTS IN NASDAQ STOCK MARKET TRADING MEDTRONIC SHARES MEANWHILE CLOSED AT 84 UP 1875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WHILE ST JUDE GAINED 1125 TO 28 IN NASDAQ TRADING SAMUEL E NAVARRO AN ANALYST WITH FURMAN SELZ INC PEGS ELECTROMEDICS' MARKET SHARE AT 35 WITH HAEMONETICS CORP OF BRAINTREE MASS OUT IN FRONT WITH 55 HE ESTIMATES MEDTRONIC'S SALES OF BLOODHANDLING AND RELATED EQUIPMENT AT 150 MILLION A YEAR WITH ST JUDE'S AT ABOUT 13 MILLION ELECTROMEDICS HAD 1992 SALES OF ABOUT 39 MILLION 9312130018 931213 INTERNATIONAL EC LEADERS AGREE TO INCREASE FUNDS FOR PUBLIC WORKS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS DESPITE THE MISGIVINGS OF THEIR FINANCE MINISTERS EUROPEAN COMMUNITY GOVERNMENT LEADERS HAVE AGREED TO A BIG INCREASE IN FUNDS FOR PUBLIC WORKS PROJECTS THAT THEY HOPE WILL BOOST THEIR ECONOMIES AND IMPROVE COMPETITIVENESS MORE THAN 22 BILLION ANNUALLY OVER THE NEXT SIX YEARS HAS NOW BEEN EARMARKED FOR THE PROJECTS WHICH INCLUDE THE CONSTRUCTION OF HIGHSPEED TRAIN LINKS NEW HIGHWAYS GAS AND ELECTRICITY GRIDS AND HIGHTECH INFORMATION AND COMMUNICATIONS NETWORKS THE GOVERNMENT MONEY IS SUPPOSED TO SUPPLEMENT PRIVATESECTOR INVESTMENT THE PLANS FORM THE CENTERPIECE OF A 150PAGE DISCUSSION DOCUMENT ON EMPLOYMENT AND COMPETITIVENESS THAT WAS PRESENTED BY JACQUES DELORS THE EC COMMISSION PRESIDENT TO EUROPEAN LEADERS AT A WEEKEND MEETING IN BRUSSELS THE SUMMIT WAS THE FIRST SINCE THE COMMUNITY'S CONTENTIOUS MAASTRICHT TREATY TOOK EFFECT IN NOVEMBER AND THE EC LEADERS WERE EAGER TO PROVE THAT THE IDEA OF CLOSER COOPERATION ENSHRINED IN THE TREATY COULD BE PUT TO PRACTICAL APPLICATION AS WELL AS LARGELY WELCOMING MR DELORS'S WHITE PAPER THE SUMMIT AGREED ON AN ACTION PLAN TO FIGHT DRUGTRAFFICKING AND TO IMPROVE COORDINATION OF NATIONAL POLICIES TOWARD ASYLUMSEEKERS AND ILLEGAL IMMIGRANTS TURNING TO FOREIGN POLICY THE EC LEADERS AGREED TO LAUNCH A NEW STABILITY PACT AT AN INTERNATIONAL CONFERENCE IN PARIS NEXT APRIL THAT IS SUPPOSED TO BIND THE FORMERCOMMUNIST NATIONS OF EASTERN EUROPE MORE CLOSELY TO THE EC AND HELP RESOLVE POTENTIAL PROBLEMS SUCH AS THE RIGHTS OF NATIONAL MINORITIES SEEKING TO PLAY A GREATER ROLE IN THE MIDDLE EAST THE SUMMIT ALSO CALLED FOR THE SPEEDY CONCLUSION OF A NEW TRADE ACCORD WITH ISRAEL BUT EC LEADERS LARGELY FAILED TO DELIVER MORE THAN ROUTINE PRESCRIPTIONS FOR THE PROBLEM OF UNEMPLOYMENT WHICH CURRENTLY STANDS AT 17 MILLION OR 11 OF THE EC'S WORK FORCE AND WHICH WAS THE CENTRAL PROBLEM ADDRESSED BY MR DELORS'S DISCUSSION DOCUMENT ALTHOUGH THEY DID DISCUSS KEY ISSUES INCLUDING THE HIGH COST OF LABOR IN EUROPE THAT IS EXACERBATING JOBLESSNESS ESPECIALLY AMONG LOWSKILLED WORKERS THE EC LEADERS SPENT MOST OF THE TIME FOCUSING ON MR DELORS'S PLANS FOR MORE SPENDING ON INFRASTRUCTURE SOME 136 BILLION OF THE PROPOSED ANNUAL SPENDING IS ALREADY IN THE EC'S BUDGET IN THE FORM OF BOTH CASH ALLOCATIONS AND LOANS AND GUARANTEES THE EC LEADERS AGREED TO SUPPLEMENT THIS WITH FURTHER BORROWINGS OF AS MUCH AS 88 BILLION ANNUALLY TO ENSURE THAT PRIORITY PROJECTS DON'T RUN INTO FINANCIAL OBSTACLES THAT HINDER THEIR REALIZATION ACCORDING TO A COMMUNIQUE ISSUED AT THE END OF THE TWODAY SUMMIT THE ADDITIONAL FUNDING WAS THE SUBJECT OF HEATED CONTROVERSY PARTICULARLY A SUGGESTION BY MR DELORS THAT IT COULD BE RAISED BY FLOATING SOCALLED UNION BONDS THE BRITISH AND GERMAN FINANCE MINISTERS AMONG OTHERS RAISED SERIOUS QUESTIONS ABOUT THE RISKS AND IDEOLOGICAL PROBLEMS OF BOOSTING EC BORROWING AT A TIME WHEN NATIONAL GOVERNMENTS ARE COMMITTED TO REDUCING THEIR DEFICITS THIS ISN'T SOME GREAT JOBCREATION SCHEME OF THE 1930S SAID KENNETH CLARKE BRITAIN'S CHANCELLOR OF THE EXCHEQUER WHO HAD CRITICIZED THE PLANS WHEN THEY WERE FIRST UNVEILED A WEEK AGO BUT IT WILL REDUCE BOTTLENECKS AND IMPROVE COMPETITIVENESS AND THEREBY CREATE THE CONDITIONS FOR JOBCREATION ONE OF THE PROBLEMS NOW WILL BE FOR COMPANIES AND GOVERNMENTS TO COME UP WITH SUITABLE PROJECTS ONLY HALF OF AN 8 BILLION LOAN FACILITY THAT WAS CREATED ONE YEAR AGO BY THE EC FOR SIMILAR INFRASTRUCTURE PROJECTS HAS SO FAR BEEN TAKEN UP LARGELY BECAUSE OF BUREAUCRATIC HURDLES 9312130017 931213 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK BRIAN D SCANLAN 37 YEARS OLD WAS NAMED PRESIDENT OF THE PARAMOUNT PUBLISHING EUROPE UNIT OF THIS PUBLISHING AND ENTERTAINMENT COMPANY HE WAS MANAGING DIRECTOR OF LONDONBASED ELSEVIER SCIENCE PUBLISHERS LTD HE SUCCEEDS DAVID MARTIN 44 WHO HAD BEEN ACTING PRESIDENT AND RESUMES HIS ROLE AS BUSINESS MANAGER FOR THE UNIT 9312130016 931213 BUSINESS BRIEF EASTMAN KODAK CO CONCERN READIES DISTRIBUTION OF SHARES IN UNIT'S SPINOFF EASTMAN KODAK CO DECLARED A DISTRIBUTION OF COMMON SHARES OF EASTMAN CHEMICAL CO AS PART OF KODAK'S SPINOFF OF THE UNIT SHAREHOLDERS WILL RECEIVE ONE EASTMAN CHEMICAL SHARE FOR EVERY FOUR KODAK SHARES THE ROCHESTER NYBASED MANUFACTURER OF PHOTOGRAPHIC SUPPLIES AND CHEMICALS WON'T ISSUE FRACTIONAL SHARES SHAREHOLDERS ENTITLED TO FRACTIONAL SHARES WILL RECEIVE A CASH PAYMENT EQUAL TO THE FRACTIONAL SHARE'S VALUE THE DISTRIBUTION IS PAYABLE AFTER DEC 31 TO STOCK OF RECORD DEC 9312130015 931213 WHO'S NEWS UNION ELECTRIC CO UNION ELECTRIC CO ST LOUIS RICHARD A LIDDY 58 YEARS OLD WAS ELECTED TO THE BOARD OF THIS ELECTRIC UTILITY MR LIDDY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENERAL AMERICAN LIFE INSURANCE CO SUCCEEDS THE LATE JA BAER II 9312130014 931213 JAPANESE NOW KNOW YUSUKE YOSHINAGA IS A MAN TO FEAR THE NATION'S CHIEF PROSECUTOR PLAYS BUT DOESN'T LOOK THE PART OF A TOUGH GUY BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO YUSUKE YOSHINAGA IS JAPAN'S TOP LAWMAN FAMED FOR EXPOSING SCANDAL IN HIGH PLACES HE IS ADMIRED BY ORDINARY PEOPLE AND HIS NAME STRIKES FEAR IN THE HEARTS OF THE POWERFUL HIS INVESTIGATIONS LED TO THE ARREST OF ONE PRIME MINISTER IN THE 1970S AND FORCED ANOTHER FROM OFFICE IN THE '80S TODAY MR YOSHINAGA BECOMES JAPAN'S PUBLIC PROSECUTOR GENERAL THE CLOSEST THING THIS NATION HAS TO A J EDGAR HOOVER IN THAT POST HE WILL CONTINUE TO PURSUE WHAT MAY BE HIS BIGGEST CASE YET HIS MEN LATELY HAVE ARRESTED MORE THAN 30 POLITICIANS AND CONSTRUCTIONCOMPANY EXECUTIVES ON CORRUPTION CHARGES BASED ON BRIBERY AND POLITICAL PATRONAGEFIXTURES OF JAPANESE POLITICS FOR DECADES THIS MAY WELL BE THE BIGGEST SCANDAL EVER IN JAPAN WITH NEW ARRESTS ANNOUNCED REGULARLY THE NEW PRIME MINISTER MORIHIRO HOSOKAWA HAVING ENDED FOUR DECADES OF ONEPARTY RULE ALSO IS ATTACKING THE NATION'S NOTORIOUS MONEY POLITICS BUT HIS OPPONENTS ARE ATTACKING HIM CURRENTLY FOR TAKING QUESTIONABLE LOANS AND AS HE STRUGGLES TO KEEP HIS FRAGILE COALITION UNIFIED THE PROSECUTORS ARE FAR MORE IMPORTANT IN PURGING THE SYSTEM ARGUES JAPANESE POLITICAL COMMENTATOR MINORU MORITA GOVERNORS MAYORS AND LEADING BUSINESSMEN HAVE BEEN TAKEN IN THIS IS ALMOST LIKE ITALY NIPPON TELEVISION HAS MADE A DOCUMENTARY OFFERING THE FIRST LOOK EVER AT THE INNER WORKINGS OF THE PROSECUTOR'S OFFICE IT IS CALLED THE MEN WHO CHALLENGE THE WICKED THE PRESS HANGS ON MR YOSHINAGA'S EVERY MOVE HIS FANGS ARE NOW BARED TOWARD NATIONAL POLITICS SCREAMED A TABLOID FRIDAY AFTER THE CABINET APPROVED HIS PROMOTION JUST WHAT IS YUSUKE YOSHINAGA THINKING WONDERED A RECENT MAGAZINE HEADLINE POLITICIANS WATCH WITH BATED BREATH IT TAKES A BIG MAN TO PLAY SUCH A BIG ROLE BUT MR YOSHINAGA DOESN'T FIT THE PART TOKYO ISN'T MILAN AND IT ISN'T HOLLYWOOD MR YOSHINAGA AND HIS CRIMEBUSTERS PURSUE TRUTH AND JUSTICE IN A UNIQUELY JAPANESE WAY THEY WIELD GREAT POWER BUT AS BUREAUCRATS THEY OPERATE IN SECRECY THEY SHUN PUBLICITY MR YOSHINAGA IS SAID TO CARE ABOUT HOW HE IS DEPICTED IN THE PRESS ENOUGH PERHAPS TO SHARE HIS VIEWS WITH A SELECT FEW JAPANESE JOURNALISTS ON A NOTFORATTRIBUTION BASIS BUT TRACKED DOWN AT HOME ONE NIGHT RECENTLY AND ASKED FOR AN INTERVIEW HE SAID THROUGH A BLACK INTERCOM AT THE FRONT GATE I DON'T HAVE TIME HE AND HIS TIGHTLIPPED PROSECUTORS HAVE SAID FEW THINGS ABOUT WHAT THEY ARE UP TO WE DON'T HAVE ANY GOALS SAYS TATSUHIRO ISHIKAWA A TOKYO PROSECUTOR WE'RE JUST ACTING BASED ON EVIDENCE MR YOSHINAGA IN A RARE NEWS CONFERENCE SEVERAL MONTHS AGO PUT IT MORE SIMPLY THE PROSECUTORS HE SAID AREN'T OUT TO CHANGE POLITICS THEY ARE ONLY GUTTER CLEANERS GUTTER HERE IS A METAPHOR FOR THE CASH CONDUIT THAT LINKED CONSTRUCTION COMPANIES TO THE POLITICAL ESTABLISHMENT DURING MUCH OF THE NATION'S RAPID POSTWAR REBUILDING THE 36 MEN ACCUSED SO FAR ARE DISTINGUISHED ELDERS OF THE COMMUNITY THEIR AVERAGE AGE IS 61 MR YOSHINAGA IS 61 HIMSELF THE GROUP INCLUDES TWO OF THE NATION'S 47 GOVERNORS TWO MAYORS SEVEN COMPANY CHAIRMEN AND PRESIDENTS AND THE HEAD OF AN INDUSTRY ASSOCIATION AS THE INVESTIGATION HEATS UP CERTAIN MEMBERS OF MR HOSOKAWA'S RULING COALITION LOOK VULNERABLE TOO THE SCANDAL IS HAVING TREMENDOUS RAMIFICATIONS A LOCAL GOVERNMENT OFFICIAL KILLED HIMSELF AFTER MEETING WITH PROSECUTORS A CONSTRUCTIONCOMPANY EXECUTIVE SLIT HIS WRISTS PROSECUTOR ISHIKAWA JOKES THAT CONSTRUCTION COMPANIES MIGHT WISH TO BUILD BETTER PRISONS IN CASE THEIR EXECUTIVES END UP SERVING TIME IN THEM IN JAPAN PROSECUTORS VIRTUALLY TAKE THE LAW INTO THEIR OWN HANDS THEY INDICT THEY ARREST THEY PROSECUTE AND THEY HAVE A 99 CONVICTION RATE SOMETIMES THEIR OPERATIVES AREN'T EVEN PARTICULARLY GENTEEL ABOUT THEIR OPERATIONS A PROSECUTOR WAS SACKED RECENTLY AFTER ALLEGEDLY SLAPPING KICKING AND STEPPING ON A CONSTRUCTION COMPANY EXECUTIVE DURING QUESTIONING MANY JAPANESE THINK IT TOOK THE FALL OF THE LIBERAL DEMOCRATIC PARTY LAST SUMMER AFTER 38 YEARS IN POWER WITH CONSTRUCTIONINDUSTRY BACKING TO OPEN THE SLUICE GATES NOT THE TYPE OTHERS BELIEVE MR YOSHINAGA MAKES THE DIFFERENCE BUT HE HIMSELF WOULD BE A VERY HARD MAN TO TURN INTO A COMICBOOK HERO HE IS AN OFFICE WORKER DOING A JOB TRYING TO AVOID THE PERSONAL SPOTLIGHT AND STRESSING THE WORK OF THE TEAM HE CONSIDERED BANKING BEFORE PURSUING A CAREER IN LAW A UNIVERSITY CLASSMATE SANKAKU EGUCHI WHO IS NOW DEAN OF THE LAW FACULTY AT OKAYAMA UNIVERSITY REMEMBERS HIM AS AN UNLIKELY CHAMPION HE WAS SHORT IN STATURE FIVEFOOTTHREE AND WEAK LOOKING INDEED THE STOOPED GRAYHAIRED BESPECTACLED CHAINSMOKING MR YOSHINAGA WITH HIS HIGHPITCHED VOICE LOOKS MORE LIKE A FUNCTIONARY THAN AN ENFORCER BUT HE IS A BULLDOG MR YOSHINAGA FIRST BECAME A PROSECUTOR IN 1955 THE YEAR THE LDP CAME TO POWER AND OFTEN SEEMED TO BE THE ONLY CHECK ON ITS POWER IN WHAT WAS BECOMING A ONEPARTY STATE HE HAS HAD A HAND IN NEARLY EVERY MAJOR POLITICALSCANDAL INVESTIGATION IN THE PAST THREE DECADES EARNING THE TABLOID MONIKER THE DEMON PROSECUTOR HE WON NATIONAL FAME IN THE MID1970S FOR LEADING THE INVESTIGATION INTO THE LOCKHEED BRIBERY CASE PROMPTING THE STUNNING ARREST OF THE POPULAR POWERFUL FORMER PRIME MINISTER KAKUEI TANAKA MR TANAKA AND OTHER POLITICIANS WERE ACCUSED OF TAKING BRIBES FROM LOCKHEED IN ORDER TO HELP THE AMERICAN COMPANY SELL PLANES TO A JAPANESE AIRLINE MR YOSHINAGA ALSO MASTERMINDED THE LATE 1980S RECRUIT COSMOS INVESTIGATION IN WHICH A FASTGROWING PUBLISHING AND REALESTATE COMPANY OFFERED SHARES OF STOCK TO POLITICIANS IN RETURN FOR FAVORS THAT BROUGHT DOWN THE CABINET OF PRIME MINISTER NOBORU TAKESHITA IT ALSO COINCIDED WITH A DECLINE IN MR YOSHINAGA'S STOCK DESPITE HIS REMARKABLE TRACK RECORD MR YOSHINAGA'S CAREER SEEMED TO BE AT AN END IN 1991 HE WAS TRANSFERRED FROM TOKYO TO HIROSHIMA AND THEN TO OSAKA BAD CAREER MOVES BOTH IN MR YOSHINAGA'S ABSENCE THE TOKYO PROSECUTORS' OFFICE SEEMED TO GO A BIT SOFT ON CORRUPTION FOR CRITICS THE MOST BLATANT EVIDENCE OF PROSECUTORIAL LAXITY CAME IN AUGUST 1992 A YEAR AND A HALF AFTER MR YOSHINAGA WAS RUSTICATED AT THAT TIME SHIN KANEMARU THE MOST POWERFUL POLITICIAN IN JAPAN ADMITTED TAKING ILLEGAL DONATIONS FROM A TRUCKING COMPANY ALLEGEDLY ASSOCIATED WITH GANGSTERS THE TOKYO PROSECUTORS LET MR KANEMARU OFF WITH A 2000 FINE THEY DIDN'T EVEN BRING HIM IN FOR QUESTIONING BUT TOOK HIS ANSWERS TO QUESTIONS IN WRITING PUBLIC OUTRAGE RARE FOR JAPAN BOILED OVER AND IN JULY THE GOVERNMENT BROUGHT MR YOSHINAGA BACK TO TOKYO AS THE CITY'S HIGH PUBLIC PROSECUTOR TO OVERSEE THE POLITICALCORRUPTION UNIT IN NOVEMBER HIS PROMOTION TO PROSECUTOR GENERAL OF JAPAN WAS ANNOUNCED THE PROSECUTORS WANTED TO RECOVER THE TRUST OF THE PEOPLE SAYS JIRO NOMURA A PROFESSOR OF LAW AT THE CHIBA INSTITUTE OF TECHNOLOGY AND ONE OF JAPAN'S LEADING SCHOLARS ON THE PROSECUTORS MR YOSHINAGA'S RETURN HE ADDS WAS A KIND OF DEMONSTRATION 9312130013 931213 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ABC RAIL PRODUCTS CORP INITIAL 3 MILLION SHARES VIA KIDDER PEABODY & CO ACTIVE VOICE CORP INITIAL 13 MILLION SHARES VIA WILLIAM BLAIR ALCO STANDARD CORP 5 MILLION SHARES VIA LEHMAN BROTHERS AMERICAN MOBILE SATELLITE CORP INITIAL 115 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AMWAY ASIA PACIFIC LTD INITIAL 79 MILLION SHARES VIA MERRILL LYNCH & CO CAPITAL APARTMENT PROPERTIES INC INITIAL 9074000 SHARES VIA FIRST BOSTON CORP CHARTWELL RE CORP INITIAL 22 MILLION SHARES VIA SALOMON BROTHERS INC COLUMBUS REALTY TRUST INITIAL 5410000 MILLION SHARES VIA PRUDENTIAL SECURITIES INC COUNTRYWIDE MORTGAGE INVESTMENTS INC 7 MILLION SHARES VIA MERRILL LYNCH DEBARTOLO REALTY CORP INITIAL 316 MILLION SHARES VIA MORGAN STANLEY & CO DENTSPLY INTERNATIONAL INC 3350000 SHARES VIA GOLDMAN SACHS & CO FACTORY STORES OF AMERICA INC 4 MILLION SHARES VIA SMITH BARNEY SHEARSON INC FINANCIAL SECURITY ASSURANCE HOLDINGS LTD INITIAL 102 MILLION SHARES VIA SALOMON BROTHERS GRUPO MEXICANO DE DESAROLLO SA INITIAL 8333333 UNITS VIA BEAR STEARNS & CO HOME HOLDINGS INC INITIAL OFFERING OF UP TO 134 MILLION SHARES VIA LEHMAN BROTHERS HEALTH AND REHABILITATION PROPERTIES TRUST 75 MILLION SHARES VIA DONALDSON LUFKIN & JENERETTE GUANGDONG ENTERPRISES 200 MILLION 10YEAR NOTES VIA MERRILL LYNCH INTERMEDIA COMMUNICATIONS OF FLORIDA INC 21 MILLION SHARES VIA BEAR STEARNS JP REALTY INC INITIAL 9550000 SHARES VIA MERRILL LYNCH KENNAMETAL INC 1715000 SHARES VIA GOLDMAN SACHS LUTINE CAPITAL CORP INITIAL 125 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE MONEY STORE INC 2 MILLION SHARES VIA PRUDENTIAL NAUTICA ENTERPRISES INC 1950000 SHARES VIA GOLDMAN SACHS PLANAR SYSTEMS INC INITIAL 46 MILLION SHARES VIA SMITH BARNEY SHEARSON PRIME RETAIL INC INITIAL 135 MILLION SHARES VIA GOLDMAN SACHS PROCEPT INC INITIAL 18 MILLION SHARES VIA KIDDER PEABODY QUIKTURN DESIGN SYSTEMS INC INITIAL 24 MILLION SHARES VIA MORGAN STANLEY REPUBLIC ENGINEERED STEELS INC 175 MILLION OF EIGHTYEAR FIRST MORTGAGE BONDS VIA CITICORP SECURITIES MARKETS INC SEQUA CORP 125 MILLION OF EIGHTYEAR SENIOR NOTES AND 175 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA BEAR STEARNS SIGNET STAR HOLDINGS INC INITIAL 59 MILLION SHARES VIA SALOMON BROTHERS SOMON PROPERTY GROUP INC INITIAL 328 MILLION SHARES VIA MERRILL LYNCH SPEIGEL INC 36 MILLION SHARES VIA ROBERTSON STEPHENS & CO TRIQUINT SEMICONDUCTOR INC INITIAL 2 MILLION SHARES VIA MONTGOMERY SECURITIES VIAGENE INC INITIAL 25 MILLION VIA ALEX BROWN & SONS NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 680 MILLION OF REFUNDING BONDS VIA A MORGAN STANLEY GROUP MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA 440 MILLION OF REFUNDING REVENUE BONDS VIA A CS FIRST BOSTON GROUP DADE COUNTY FLA 415 MILLION BONDS VIA A MERRILL LYNCH GROUP NEW YORK STATE DORMITORY AUTHORITY 415 MILLION OF COURT FACILITIES LEASE REVENUE BONDS VIA A PAINEWEBBER INC GROUP DISTRICT OF COLUMBIA 300 MILLION TO 450 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A WR LAZARD LAIDLAW & MEAD INC GROUP URBAN DEVELOPMENT CORP OF NEW YORK 240 MILLION OF BONDS VIA A MERRILL LYNCH GROUP ARIZONA TRANSPORTATION BOARD 225 MILLION HIGHWAY OF REVENUE BONDS VIA A PAINEWEBBER GROUP CALIFORNIA STATE PUBLIC WORKS BOARD 200 MILLION OF LEASE REVENUE BONDS VIA A LAZARD FRERES & CO GROUP NEW YORK STATE THRUWAY AUTHORITY 200 MILLION OF GENERAL REVENUE BONDS VIA A DILLON READ & CO GROUP WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY 145 MILLION OF HOUSING REVENUE BONDS VIA A GOLDMAN SACHS GROUP VALDEZ ALASKA 1282 MILLION OF MARINETERMINAL REVENUE REFUNDING BONDS FOR THE BP PIPELINES ALASKA INC PROJECT GUARANTOR IS THE BRITISH PETROLEUM CO VIA A JP MORGAN SECURITIES INC GROUP DETROIT 167 MILLION OF GENERAL OBLIGATION BONDS INCLUDING 140 MILLION REFUNDING OF GOS VIA A MERRILL LYNCH GROUP MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 128 MILLION OF HOSPITAL REVENUE REFUNDING BONDS VIA GOLDMAN SACHS KANSAS DEPARTMENT OF TRANSPORTATION 125 MILLION OF BONDS VIA A SMITH BARNEY SHEARSON GROUP INTERMEDIA COMMUNICATIONS OF FLORIDA INC'S 21 MILLION SHARES WERE PRICED ON NOV 16 AT 1450 EACH YESTERDAY'S SECURITIES OFFERING CALENDAR INCORRECTLY STATED THAT THE COMPANY PLANNED TO SELL THE 21 MILLION SHARES THIS WEEK 9312130012 931213 BUSINESS BRIEF LA GEAR INC FOOTWEAR MAKER LAYS OFF 70 WORKERS IN RESTRUCTURING ABOUT 70 EMPLOYEES OF LA GEAR INC SANTA MONICA CALIF HAVE BEEN LAID OFF AS PART OF THE FOOTWEAR COMPANY'S CONTINUING RESTRUCTURING A COMPANY SPOKESMAN SAID LA GEAR IS IN THE MIDST OF A TURNAROUND STRATEGY AFTER A PERIOD OF POOR FINANCIAL PERFORMANCE HE SAID THE COMPANY'S FOCUS IS ON CUTTING ITS ADMINISTRATIVE AND OPERATING WORK FORCES ANOTHER PERSON FAMILIAR WITH THE COMPANY'S ACTION CONFIRMED THE LAYOFF THE SPOKESMAN SAID THE COMPANY NOW HAS BETWEEN 500 AND 550 WORKERS IN THE US HE SAID IT IS HARD TO SAY WHETHER THERE WILL BE MORE JOB CUTS IT'S AN ONGOING PROCESS TO ALLOW THE COMPANY TO RETURN TO PROFITABILITY HE SAID LA GEAR IN OCTOBER POSTED ITS FIRST QUARTERLY PROFIT IN THREE YEARS REPORTING NET INCOME OF 72 MILLION OR 23 CENTS A SHARE FOR THE QUARTER ENDED AUG 31 9312130011 931213 COMMODITIES GOLD'S PROSPECTS SEEN HEADED UP TO 400 AGAIN BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL THE PRICE OF GOLD AFTER MONTHS OF TEASING AND FALSE STARTS APPEARS TO BE DRIVING TOWARD 400 AN OUNCE SINCE SEPT 13 WHEN THE ACTIVELY TRADED FEBRUARY GOLD FUTURES CONTRACT WAS SELLING FOR 34450 AN OUNCE THE PRICE OF THE GLEAMING COMMODITY HAS LEAPED NEARLY 12 TO FRIDAY'S CLOSING PRICE OF 38490 AN OUNCE MEANWHILE THE PRICE OF SILVER RECENTLY CROSSED THE KEY 5ANOUNCE LEVEL GIVING COMFORT TO PRECIOUSMETALS BULLS I WOULDN'T BE SURPRISED IF GOLD REACHED 400 BY THE END OF THIS CALENDAR YEAR SAYS NINA LIPTON DIRECTOR OF MARKET RESEARCH FOR PLATINUM GUILD INTERNATIONAL IF IT DOESN'T BY THEN IT MAY SOON AFTER THAT GOLD TOPPED THE 400 BARRIER LAST SUMMER PEAKING AT 414 AN OUNCE LACK OF INFLATION AND THE REFUSAL OF INDUSTRIAL GOLD CONSUMERS LIKE THE JEWELRY INDUSTRY TO PAY HIGHER PRICES STALLED THE RALLY HOWEVER PRECIOUSMETALS MARKETS ALSO WERE DAMPED BY THE ROUT IN CRUDEOIL PRICES BECAUSE TRADERS INTERPRETED THE WEAKNESS AS A SIGN OF DEFLATION GENERALLY PRECIOUSMETALS PRICES RISE WHEN INFLATION DOES AS INVESTORS POUR MONEY INTO ASSETS SUCH AS GOLD THAT THEY THINK WILL HOLD VALUE SINCE SUMMER THE US ECONOMIC RECOVERY AND A RESURGENCE OF DEMAND FOR GOLD AMONG INVESTORS AND INDUSTRIAL CONSUMERS HAS BROUGHT THE PRICE BACK FOR A SECOND TRY AT THE 400 LEVEL THE PRICE OF GOLD PERHAPS MORE THAN ANY OTHER COMMODITY IS DRIVEN BY THE PSYCHOLOGY OF INVESTORS ANALYSTS SAY AND AT THE MOMENT IT'S OVERWHELMINGLY BULLISH COMMODITY FUNDS THE MANAGED POOLS OF INVESTOR MONEY THAT WIELD SO MUCH INFLUENCE IN TODAY'S COMMODITY MARKETS HAVE MADE MAJOR BETS THAT GOLD PRICES ARE HEADED HIGHER THE BUYING POWER OF THE FUNDS IS PRESENTLY THE MOST CRITICAL FACTOR IN THE MARKET SAYS GEORGE MILLINGSTANLEY A FIRST VICE PRESIDENT AT LEHMAN BROTHERS THEY WERE AIMING AT PENETRATING 380 AND SUCCEEDED MOREOVER ALTHOUGH ECONOMISTS SEE NO SIGN OF A PICKUP IN INFLATION GOLD IS BENEFITING FROM THE IMPRESSION THAT DEFLATION IS FINISHED THE MARKET IS TELLING US NOT THAT INFLATION IS IMMINENT BUT RATHER THAT THE DEFLATIONARY CYCLE WE WERE IN HAS ENDED SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH PRECIOUS METALS TEND TO ANTICIPATE AND THAT'S WHAT IS GOING ON THERE ARE OTHER COMPELLING REASONS FOR BELIEVING GOLD PRICES MAY BE HEADED HIGHER ASSETS HAVE FLOWED INTO GOLD STOCKS SUCH AS PLACER DOME INC AND AMERICAN BARRICK RESOURCES HELPING THESE SHARES STAGE IMPRESSIVE RALLIES IN THE PAST YEAR SINCE DEC 4 1992 PLACER DOME'S PERSHARE PRICE HAS MORE THAN DOUBLED TO 24625 FROM 10875 AND AMERICAN BARRICK ALSO HAS MORE THAN DOUBLED TO 27875 A SHARE FROM 13625 ON JAN 18 THESE STOCKS TYPIFY THE MOVE INTO GOLD SAYS AC MOORE PORTFOLIO MANAGER FOR SBCM/ARGUS IN SANTA BARBARA CALIF GOLD STOCK GAINS HAVE OUTPACED THE METAL PRICES TO DATE I THINK THE METAL WILL HAVE TO CATCH UP NOT EVERYONE IS SOLD ON GOLD'S PROSPECTS TO CLIMB OF COURSE TO ME THIS WOULD BE WHAT'S KNOWN AS A CYCLICAL RALLY AND NOT A SECULAR RALLY IN WHICH WE GET A SUSTAINED UPWARD MOVEMENT SAYS LASZLO BIRINYI OF BIRINYI & ASSOC A MARKET RESEARCH FIRM TO ME IT INDICATES HAVING A COUPLE OF GOOD DAYS NOT MUCH MORE OTHER SKEPTICS POINT TO A DECLINE IN BUYING BY THE JEWELRY AND ELECTRONICS INDUSTRIES WHEN GOLD RECENTLY TOPPED 370 AN OUNCE THESE INDUSTRIAL USERS HAD BEEN HEAVY BUYERS AT ABOUT 360 AN OUNCE BUT APPARENTLY BELIEVE THAT THEY CAN WAIT OUT THE RALLY AND GET GOLD AT MUCH LOWER PRICES WHEN IT PLUNGES SOME ANALYSTS SAY THEY MAY BE WAITING IN VAIN MS LIPTON SAYS IN TERMS OF JEWELRY SALES THIS CHRISTMAS SEASON IS TURNING OUT TO BE GANGBUSTERS COMPARED TO WHAT PEOPLE EXPECTED SHE SAYS STOCKPILES HELD BY JEWELRY PRODUCERS HAVE BEEN PRETTY LEAN IF DEMAND EXCEEDS WHAT THEY THOUGHT THEY CAN BE CAUGHT IN A CRUNCH AND HAVE TO DO SOME HEAVY BUYING THAT ACCOMPANIED BY SIMILAR BUYING BY SMALL INVESTORS MAY BE WHAT IS NEEDED TO LIFT GOLD'S PRICE ABOVE THE 400 HUMP ANALYSTS SAY ONE REASON FOR SILVER'S RALLY ABOVE THE 5ANOUNCE LEVEL IS THAT MIDDLE EASTERN INVESTOR SYNDICATES HAVE BEEN TAKING DELIVERY OF LARGE QUANTITIES OF SILVER BULLION BUT GOLD IS ANOTHER MATTER IN GOLD WE HAVE NOT SEEN THIS SIGNIFICANT PHYSICAL INVESTMENT DEMAND MR O'NEILL SAYS THE RALLY IN GOLD HAS BEEN MOSTLY A PAPER RALLY TO THIS POINT TO MAINTAIN STRENGTH IT'S GOING TO REQUIRE MORE DEMAND FOR BULLION ITSELF AMONG INVESTORS THEY HAVE TO FEEL THAT THE SITUATION IS SUCH THAT THE OPPORTUNITY FOR RETURN IS GREATER IN HARD GOLD THAN IN SOMETHING ELSE ANOTHER NEGATIVE IS THE SLUGGISH PRICE OF PLATINUM WHICH HAS BEEN TUGGED LOWER BY JAPAN'S RECESSION THE MAIN INDUSTRIAL CONSUMER OF PLATINUM IS THE AUTOMOTIVE INDUSTRY WHICH USES THE PRECIOUS METAL TO MAKE CATALYTIC CONVERTERS AND THE WEAKNESS OF THE JAPANESE AUTOMOTIVE INDUSTRY HAS SAPPED DEMAND FOR PLATINUM PULLING ITS PRICE BELOW THAT OF GOLD AN UNUSUAL STATE OF AFFAIRS BUT REGARDLESS OF WHETHER THE JAPANESE ECONOMY RECOVERS PLATINUM'S PRICE IS LIKELY TO CLIMB GRADUALLY AS GOLD AND SILVER PRICES RISE MR O'NEILL SAYS IT IS SIMPLE SUPPLY AND DEMAND MR MOORE ASSERTS THAT WILL INEVITABLY FORCE THESE PRICES HIGHER ESSENTIALLY GOLD IS OUT OF BALANCE WITH RESPECT TO SUPPLY AND DEMAND HE SAYS FOR EXAMPLE IN 1980 GOLD PRODUCTION IN NONCOMMUNIST COUNTRIES WAS ABOUT 960 TONS A YEAR AND WORLD CONSUMPTION WAS ABOUT 950 TONS A YEAR MR MOORE SAYS BY 1991 GOLD DEMAND ROSE TO ABOUT 2500 TONS A YEAR BUT PRODUCTION ROSE TO ONLY 1780 TONS HE SAYS THE REASON YOU DIDN'T SEE ANY PRICE INCREASE BEFORE NOW IS THAT DURING THE '80S RUSSIA HAS BEEN DUMPING GOLD IN ORDER TO PAY ITS BILLS MR MOORE SAYS NOW THE PRICE OF GOLD HAS STARTED TO GO UP IN PART BECAUSE THE RUSSIANS DON'T HAVE THAT MUCH MORE GOLD TO SELL THIS CREATES THE POTENTIAL FOR A VERY IMPORTANT UP MOVE IN THE PRICE OF GOLD NEIL BEHRMANN IN LONDON CONTRIBUTED TO THIS ARTICLE 9312130010 931213 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 320 30 TO 49 DAYS 318 50 TO 119 DAYS 325 120 TO 239 DAYS 335 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 336 30 DAYS 336 60 DAYS 337 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 266 TWO MONTHS 270 THREE MONTHS 277 SIX MONTHS 305 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 330 ONE MONTH 330 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 319 30 DAYS 319 60 DAYS 319 90 DAYS 321 120 DAYS 322 150 DAYS 323 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 5/16 3 3/16 ONE MONTH 3 3/8 3 1/4 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 5/16 ONE MONTH 3 3/8 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 605 JAPAN 3 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 6 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 327 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 7 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 697 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312130009 931213 WALTER INDUSTRIES' BONDHOLDERS AGREE TO SETTLEMENT WITH ASBESTOS PLAINTIFFS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL BONDHOLDERS OF WALTER INDUSTRIES INC REACHED AN AGREEMENT WITH ATTORNEYS REPRESENTING ASBESTOS PLAINTIFFS TO SETTLE THE LITIGATION THAT HAS DOGGED THE FLORIDABASED HOMEBUILDER FOR FOUR YEARS THE AGREEMENT IN PRINCIPLE ON THE EVE OF TRIAL AVERTS THE THREAT OF A CRIPPLING LIABILITY FOR WALTER INDUSTRIES AND WILL SPEED THE CONCLUSION OF BANKRUPTCYLAW PROCEEDINGS THE ASBESTOS TRIAL IS SCHEDULED TO START TODAY BEFORE BANKRUPTCY JUDGE ALEXANDER L PASKAY IN THE MIDDLE DISTRICT OF FLORIDA THE PRICE OF THE COMPANY'S PUBLICLYTRADED BONDS ROSE STEADILY ALL WEEK AND JUMPED SHARPLY FRIDAY MORNING IN ANTICIPATION OF THE ANNOUNCEMENT WHICH WAS MADE SHORTLY AFTER 4 PM FRIDAY FOR EXAMPLE THE 10875 SUBORDINATED DEBENTURES SURGED TO 74 CENTS ON THE DOLLAR FROM 60 AT THE BEGINNING OF THE WEEK WALTER INDUSTRIES FORMERLY JIM WALTER CORP WAS TAKEN PRIVATE BY KOHLBERG KRAVIS ROBERTS & CO IN A 24 BILLION LEVERAGED BUYOUT IN 1987 WALTER FILED FOR BANKRUPTCYCOURT PROTECTION IN DECEMBER 1989 IN AN EFFORT TO DODGE CLAIMS TOTALING 2 BILLION RESULTING FROM ASBESTOS MANUFACTURED BY A FORMER SUBSIDIARY THE SETTLEMENT WOULD ESTABLISH A 525 MILLION TRUST WHEN WALTER EMERGES FROM BANKRUPTCY COURT FOR PEOPLE SUFFERING PERSONAL INJURY OR PROPERTY DAMAGE RESULTING FROM ASBESTOS IF KKR WALTER'S MAIN SHAREHOLDER AGREES TO THE SETTLEMENT IT WOULD RETAIN EQUITY OF 75 MILLION IN THE REORGANIZED COMPANY AND THE TRUST WOULD BE REDUCED TO 450 MILLION THE SETTLEMENT IS ALREADY A CLEAR VICTORY FOR LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO AND APOLLO ADVISORS RUN BY FINANCIER LEON BLACK WHICH WILL MORE THAN TRIPLE THEIR INVESTMENT LEHMAN AND APOLLO INTEND TO FILE A PLAN OF REORGANIZATION WITH THE BANKRUPTCY COURT THIS WEEK ACCORDING TO ONE BANKER FAMILIAR WITH THE TALKS UNDER THE PLAN SENIOR CREDITORS WILL RECEIVE THE FULL VALUE OF THEIR CLAIMS THE PLAN IS LIKELY TO VALUE WALTER AT ABOUT 25 BILLION NOT ENOUGH TO PAY LEHMAN AND APOLLO 100 CENTS ON THE DOLLAR SO THEY WILL EMERGE AS THE LARGEST SHAREHOLDERS OF THE REORGANIZED COMPANY THE BIG LOSER IS KKR IF IT ACCEPTS THE 75 MILLION OFFER IT WILL RECOVER HALF ITS INITIAL INVESTMENT IN WALTER BUT THAT WILL REPRESENT ABOUT AN 8 STAKE IN THE NEW COMPANY CONSIDERABLY LESS THAN THE 30 KKR HOPED TO RETAIN AND THE 15 APOLLO HAD OFFERED DURING TALKS IN OCTOBER SINCE KKR HAS NOT YET SIGNALED ITS AGREEMENT THE FLORIDA TRIAL IS LIKELY TO TURN INTO A HEARING ON THE VALIDITY OF THE SETTLEMENT KKR DID NOT RETURN CALLS REQUESTING COMMENT WALTER'S BANKRUPTCYLAW PROCEEDING HAS BEEN MARKED BY AN UNUSUAL DEGREE OF ACRIMONY BETWEEN KKR AND THE LEADING BONDHOLDERS LEHMAN AND APOLLO ADVISORS KKR ONE OF WALL STREET'S LARGEST UNDERWRITING CLIENTS PULLED ITS BUSINESS FROM LEHMAN AFTER LEHMAN BEGAN ACCUMULATING ITS 300 MILLION HOLDING FOR AS LITTLE AS 20 CENTS ON THE DOLLAR IN 1990 ACCORDING TO A BANKER FAMILIAR WITH THE COURT PROCEEDING LEHMAN DECLINED TO COMMENT ABOUT THE BANKRUPTCY PROCEEDING AND THE SETTLEMENT AGREEMENT TENSIONS HEIGHTENED AFTER KKR LOST THE EXCLUSIVE RIGHT UNDER BANKRUPTCY LAW TO PROPOSE A PLAN OF REORGANIZATION IN JULY NEITHER LEHMAN NOR APOLLO WHICH ACQUIRED ITS 175 MILLION HOLDING THROUGH THE MARCH 1992 ACQUISITION OF EXECUTIVE LIFE INSURANCE CO OF CALIFORNIA SIT ON THE BONDHOLDERS' COMMITTEE BUT THEY ARE SHAPING THE OUTCOME BECAUSE TOGETHER THEY CONTROL NEARLY TWOTHIRDS OF THE BUYOUT DEBT ENOUGH TO APPROVE ANY PLAN THEY PROPOSE APOLLO AND LEHMAN INITIATED TALKS WITH THE ASBESTOS PLAINTIFFS' LAWYERS IN MIDOCTOBER WHEN SETTLEMENT TALKS WITH KKR BROKE DOWN THE SETTLEMENT WOULD BIND ALL PLAINTIFFS TERMS OF THE TRUST REMAIN TO BE WORKED OUT THE TRUST WILL BE FUNDED WITH CASH IF THE REORGANIZED WALTER CAN RAISE ENOUGH MONEY WHEN IT ISSUES NEW STOCK AND DEBT IF NOT THE TRUST WILL BE FUNDED WITH A PORTION OF THOSE SECURITIES 9312130008 931213 GIFTS FOR THE HOME PROPEL CHRISTMAS SALES A WALL STREET JOURNAL NEWS ROUNDUP WITH THE CHRISTMAS SHOPPING SEASON IN FULL SWING A BROAD RANGE OF RETAILERS ARE SHOWING MODESTTOSTRONG SALES GAINS OVER LAST YEAR DRIVEN LARGELY BY SHOPPERS BUYING GIFTS FOR THE HOME BUT BRISK INTEREST IN ITEMS RANGING FROM BEDDING TO POWER DRILLS APPEARS TO BE DAMPING APPAREL SALES THIS SEASON WITH ONLY 12 SHOPPING DAYS LEFT UNTIL CHRISTMAS MANY SPECIALTY APPAREL RETAILERS AND DEPARTMENT STORES WITH HEAVY APPAREL INVENTORIES ARE GIRDING FOR A SEASON THAT HAS TURNED TOUGHER THAN EXPECTED VALERIE GEEL SHOPPING IN NEW YORK SATURDAY WITH HER HUSBAND KERRY WILL BUY SOME CLOTHES FOR A TEENAGE DAUGHTER BUT IS EARMARKING MOST OF HER CHRISTMAS BUDGET FOR A VCR NEW FURNITURE AND CURTAINS WE WANT TO SPRUCE UP THE HOUSE SHE SAID THIS YEAR WE'RE SITTING A LITTLE BETTER AND SO WE'LL DO MORE OF THAT BASED ON RESULTS FOR THE WEEKEND AND THE SEASON SO FAR ANALYSTS EXPECT A 4 TO 5 GAIN IN SALES FOR THE HOLIDAY SEASON BUT THAT WON'T MATCH THE ROBUST 8 GAIN OF LAST YEAR WHICH BENEFITED FROM A POSTELECTION BOUNCE AND SHOPPERS' CLEAR PENCHANT FOR THE PRACTICAL AND UTILITARIAN THIS SEASON IS SKEWING THE SALES PICTURE ACROSS DIFFERENT RETAIL CATEGORIES STILL ONE SIGN OF CONSUMER OPTIMISM IS THE BIG JUMP IN CREDITCARD SPENDING ACCORDING TO MASTERCARD'S SMART MONEY WATCH THE VOLUME OF RETAIL SALES CLEARED THROUGH THE MASTERCARD NETWORK ROSE NEARLY 20 FROM A YEAR AGO FOR THE PERIOD BETWEEN THANKSGIVING AND LAST FRIDAY THE MASTERCARD INTERNATIONAL FIGURES ALSO SHOW CLOTHING STORES DID FAR WORSE THAN DISCOUNT AND DEPARTMENT STORES IN THE PAST WEEK THE VOLUME OF CLOTHINGSTORE SALES CLEARED BY MASTERCARD DECLINED 4 FROM A YEAR EARLIER WHILE SALES AT DISCOUNT AND DEPARTMENT STORES ROSE MORE THAN 20 EACH RETAIL SPENDING ON VISA CARDS ROSE 28 FROM A YEAR AGO FOR THE PERIOD FROM THANKSGIVING THROUGH SATURDAY ACCORDING TO VISA'S HOLIDAY SPENDTRAK VISA USA ATTRIBUTES THE JUMP TO BOTH AN INCREASE IN SHOPPING AND AN INCREASE IN USAGE OF VISA CREDIT CARDS WE SENSE AN UPTICK IN CONSUMER CONFIDENCE SAYS KEITH KENDRICK SENIOR VICE PRESIDENT AT AMERICAN TELEPHONE & TELEGRAPH CO'S AT&T UNIVERSAL CARD WHERE TOTAL HOLIDAY SEASON CREDITCARD PURCHASES ARE RUNNING 10 TO 12 AHEAD OF LAST YEAR'S BUT THERE ARE SIGNS THE MOMENTUM MAY NOT BE SUSTAINED AN EARLYDECEMBER SURVEY BY LEO J SHAPIRO & ASSOCIATES A CHICAGO CONSULTING FIRM FOUND THE PERCENTAGE OF SHOPPERS WHO EXPECT TO SPEND MORE ON HOLIDAY GIFTS THIS YEAR THAN LAST DROPPED TO 21 FROM 24 IN THE FIRM'S NOVEMBER SURVEY AND FROM 30 LAST DECEMBER THIS IS THE FIRST TIME SINCE 1976 ACCORDING TO SHAPIRO THAT A SPURT IN NOVEMBER HAS BEEN FOLLOWED BY A RETREAT IN DECEMBER CONSUMERS ARE CLEARLY FOCUSING ON THEIR HOMES FOR THE HOLIDAYS SAID JOHN H COSTELLO SENIOR EXECUTIVE VICE PRESIDENT OF MARKETING AT CHICAGOBASED SEARS ROEBUCK & CO WHERE SAMESTORE SALES FRIDAY AND SATURDAY ROSE 8 TO 12 OVER LAST YEAR GIFT PURCHASES THIS YEAR HE ADDED ARE MORE LIKELY TO REFLECT NEEDS RATHER THAN WANTS SOME DEPARTMENT STORES FARED LESS WELL BLAMING CONSUMER PROCRASTINATION AND FOUL WEATHER SALES FOR THE SEASON AT YOUNKERS INC A MIDWEST CHAIN ARE FLAT WITH LAST YEAR ACCORDING TO ALAN RAXTER CHIEF FINANCIAL OFFICER HE SAYS SHOPPERS ARE DELAYING PURCHASES UNTIL THE LAST MINUTE AT GOTTSCHALK'S INC IN RECESSIONWEARY CALIFORNIA SEASONAL SALES THROUGH FRIDAY WERE ONLY 3 AHEAD OF LAST YEAR'S LEVELS JOE LEVY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID STORMS KEPT STORE TRAFFIC DOWN ALL OVER CALIFORNIA AND LIKELY WILL PUT SATURDAY'S SALES A HALF A PERCENTAGE POINT BEHIND YEAREARLIER LEVELS IT'S STILL TOUGH IN CALIFORNIA SAID SANDRA SHABER AN ECONOMIST AT WEFA GROUP IN BALA CYNWYD PA THE STRENGTHS ARE IN THE MOUNTAIN STATES AND IN THE SOUTHEAST NEW ENGLAND IS STARTING TO PICK UP A BIT AND THE MIDDLE ATLANTIC STATES ARE STILL A LITTLE SLOW DESPITE ICE AND RAIN IN THE NORTHEAST SEARS SAW SLIGHTLY STRONGER SALES IN THAT REGION LAST WEEKEND COMPARED WITH LAST YEAR WHEN NEW ENGLAND WAS STRUCK BY A VIOLENT STORM SAKS FIFTH AVENUE OWNED BY INVESTCORP A BAHRAINBASED INVESTOR GROUP REPORTED BRISK WEEKEND SALES AT ITS MANHATTAN FLAGSHIP STORE FRED MYERS INC A BIG DISCOUNTER BASED IN PORTLAND ORE WOULDN'T DISCUSS SATURDAY'S SALES BUT A SPOKESMAN DESCRIBED THE CHRISTMAS SEASON SO FAR AS ONE WEEK UP AND ONE WEEK DOWN STORMS IN CALIFORNIA AND THE NORTHWEST DIDN'T SEEM TO THIN TRAFFIC AT WILLIAMSSONOMA INC'S EMBARCADERO SHOP IN SAN FRANCISCO I'M HERE AND I'M BUYING SAID LISABETA FERNANDEZ THAT'S TOTALLY DIFFERENT FROM LAST YEAR WHEN I WAS SITTING AT HOME WORRYING ABOUT MONEY HOMEFURNISHINGS RETAILER PIER 1 IMPORTS INC HAD SAMESTORE SALES GAINS ACROSS THE COUNTRY EVEN IN SOUTHERN CALIFORNIA WHICH REMAINS ITS SOFTEST AREA ACCORDING TO CLARK A JOHNSON CHAIRMAN AND CHIEF EXECUTIVE ANALYSTS NOW EXPECT DEPARTMENT STORES TO POST SAMESTORE GAINS OF 4 TO 5 ABOVE LAST YEAR'S SEASON WITH CAUTIOUS SHOPPERS STILL HUNTING FOR BARGAINS DISCOUNTERS' HOLIDAY SALES ARE EXPECTED TO OUTPACE LAST YEAR'S BY ABOUT 6 TO 7 WHILE MERCHANTS SPECIALIZING IN HOUSEHOLD GOODS COULD SEE SALES CLIMB BETTER THAN 7 NORTH WILKESBORO NCBASED LOWE'S COS IS REAPING THE BENEFITS THE HOMEIMPROVEMENT CHAIN WITH MORE THAN 300 STORES IN 20 STATES EXPECTS TO REPORT SAMESTORES SALES GAINS THROUGH THE WEEKEND OF CLOSE TO 20 WITH READYTOASSEMBLE FURNITURE POWER TOOLS AND CONSUMER ELECTRONICS SELLING WELL THE BIGTICKET DURABLE ITEMS ARE COMING BACK STRONGLY SAYS ROBERT STRICKLAND LOWE'S CHAIRMAN SOME DEPARTMENT STORES ALSO DID WELL AT FEDERATED DEPARTMENT STORE'S BLOOMINGDALE'S CHAIN SAMESTORE SALES FOR THE FIRST TWO WEEKS OF DECEMBER WERE UP ABOUT 85 FROM A YEAR EARLIER ACCORDING TO BLOOMINGDALE'S CHAIRMAN MICHAEL GOULD WE ARE NICELY AHEAD OF OUR PLAN FOR THE MONTH AND I CAN ONLY BE CAUTIOUSLY OPTIMISTIC HE SAID BUT SOME RETAILERS HAVE GROWN MORE SKITTISH AS THE SEASON HAS PROGRESSED BENTONVILLE ARKBASED WALMART STORES INC RECOILING FROM WALL STREET'S REACTION TO ITS COMMENT THAT SALES FOR THE DAY AFTER THANKSGIVING WERE NOT UP TO WALMART STANDARDS NOW DECLINES TO DISCUSS SALES SO DOES BOMBAY CO A FORT WORTH TEXASBASED HOMEFURNISHINGS CHAIN THAT HAD REPORTED A 20 SAMESTORE SALES GAIN OVER THE THANKSGIVING WEEKEND CONSUMERS ARE GOING FOR MORE PRACTICAL ITEMS BUT AT SHARPER IMAGE THAT MEANS A 14995 SONIC TOOTHBRUSH THAT BLASTS PLAQUE WITH SOUND WAVES AND A 5995 ANTISNORING DEVICE THAT ATTACHES TO A SLEEPER'S WRIST AT RH MACY & CO DEMAND FOR SUCH ITEMS AS DECORATIVE TABLE GOODS AND FURNITURE IS HIGH THROUGHOUT THE COMPANY'S 124 MACY'S AND I MAGNIN STORES ACCORDING TO VICE PRESIDENT LAURA MELILLO BUT SALES OF WOMEN'S APPAREL BE IT CASUAL OR DESIGNER LINES ARE SLOW AND SOFT SHE SAID COOKBOOKS AT WILLIAMSSONOMA STORES ARE MOVING FAST AT FEDERATED'S THE BON A 40STORE CHAIN BASED IN SEATTLE THE HOT SELLERS ARE HANDBAGS ELECTRONIC POKER GAMES COSMETICS SETS AND HOME ESPRESSO MACHINES CHAIRS TABLES AND SOFAS ALL PURCHASED SEPARATELY ALSO HAVE BEEN STRONG SELLERS WHILE MANY RETAIL EXECUTIVES CLAIM THEY AREN'T MARKING DOWN MORE MERCHANDISE THIS YEAR STORES APPEAR TO BE HEAVILY PROMOTING BARGAINS GALERIES LAFAYETTE FOR INSTANCE STOCKED UP ON LOWERPRICED CASHMERE SWEATERS FOR MEN AND WOMEN COSTING AS MUCH AS 130 AND HEAVILY PROMOTED THEM THE NEW YORK SPECIALTY RETAILER A UNIT OF GALERIES LAFAYETTE SA OF FRANCE ATTRIBUTES ITS 6 SALES GAIN SINCE THANKSGIVING AND ITS 10 GAIN LAST WEEK THROUGH SATURDAY PARTLY TO ITS STRONG POSITION IN BARGAINPRICED CASHMERE SOME RETAILERS ARE STRUGGLING WITH THE DISCOUNTING QUESTION DALLASBASED ZALE CORP THE NATION'S LARGEST JEWELRY CHAIN DECIDED EARLIER THIS YEAR TO OFFER FEWER PRICE PROMOTIONS IN ITS FLAGSHIP ZALE DIVISION ONLY TO SEE SALES FOR THE THANKSGIVING WEEKEND SAG FROM A YEAR AGO TO REGAIN GROUND ZALE LAUNCHED A 50OFF PROMOTION ON ONE OF ITS HOTTEST ITEMS DIAMOND BRACELETS THE WEDNESDAY AFTER THANKSGIVING THAT DROVE ADDITIONAL TRAFFIC INTO THE STORES WHICH WE BENEFITED FROM SAID ANDREAS LUDWIG INTERIM CHIEF EXECUTIVE THE FLIP SIDE IS THAT THERE'S CONTINUING PRESSURE ON THE MARGINS BUT PEOPLE LIKE BETH ANDREWS A 27YEAROLD ATLANTA RESIDENT DON'T GIVE RETAILERS MUCH CHOICE ALTHOUGH SHE INTENDS TO SPEND ABOUT 500 THIS HOLIDAY SEASON SHE SAYS I ONLY BUY THINGS ON SALE 9312130007 931213 THE OUTLOOK ARGUMENTS THREATEN TO DIVERT ATTENTION BY DAVID WESSEL WASHINGTON THE WORDS USED IN PUBLIC DEBATES OVER ECONOMIC POLICY MAKE A DIFFERENCE CHOSEN WELL THEY CLARIFY POLITICAL CHOICES THAT INFLUENCE AMERICAN LIVING STANDARDS CHOSEN POORLY THEY REDUCE ARGUMENTS OVER POLICY TO NAME CALLING MAYBE IT IS THE WATER HERE IN WASHINGTON WHICH WAS RECENTLY AND TEMPORARILY DEEMED UNSAFE TO DRINK THAT BREEDS A DANGEROUS TENDENCY TO FOCUS ON LABELS AND CHARACTERIZATIONS RATHER THAN REALITY CLEVER ARGUMENT CAN TURN PUBLIC SENTIMENT BUT CAN ALSO PRODUCE CYNICISM AND MISUNDERSTANDING DUBBING EVERY PROGRAM ON WHICH PRESIDENT CLINTON WANTS TO SPEND MORE AN INVESTMENT CHEAPENS THE CONCEPT THAT GOVERNMENT SHOULD SPEND LESS ON PROGRAMS THAT SATISFY CURRENT WANTS AND MORE ON PROGRAMS THAT WILL PAY OFF IN THE FUTURE TURNING THE DEBATE OVER RESTRUCTURING THE HEALTH SYSTEM INTO AN ACCOUNTING DISPUTE THREATENS TO SMOTHER DISCOURSE OVER FUNDAMENTALS OF THE PLAN HERE ARE FOUR ARGUMENTS THAT THREATEN TO DISTRACT POLITICIANS THE PRESS THE PUBLIC FROM THINGS THAT TRULY DESERVE ATTENTION IN DEBATING MR CLINTON'S HEALTH PLAN THE CRUCIAL ISSUE IS WHETHER THE PAYMENTS THAT EMPLOYERS WOULD MAKE ARE PROPERLY CALLED PREMIUMS OR TAXES THE PRESIDENT'S PROPOSAL TO REQUIRE EMPLOYERS TO PROVIDE INSURANCE MAY DISCOURAGE HIRING AND NEEDLESSLY COMPLICATE AN ALREADY COMPLICATED HEALTHCARE FINANCING SCHEME BUT THE ECONOMIC EFFECTS WON'T CHANGE A BIT IF CRITICS CAN FORCE MR CLINTON OR CONVINCE THE CONGRESSIONAL BUDGET OFFICE TO USE THE UGLY WORD TAXES INSTEAD OF THE SAFERSOUNDING PREMIUMS THE BETTER QUESTION IS WHETHER THE PRESIDENT'S PLAN RELIES TOO MUCH ON GOVERNMENT REGULATION AND TOO LITTLE ON MARKET FORCES REGARDLESS OF THE MERITS OF THE CASE ARGUING FOR THE WORD TAXES WON'T ADDRESS THAT IN FACT IT COULD DISTORT THE DEBATE CONSIDER AN ALTERNATIVE TO MR CLINTON'S APPROACH THE GOVERNMENT COULD IMPOSE A NEW TAX TO PAY FOR HEALTH INSURANCE FOR ALL GIVING EACH AMERICAN A HEALTHINSURANCE VOUCHER AND ALLOWING HIM OR HER TO CHOOSE AMONG COMPETING PRIVATE INSURANCE PLANS WITHOUT ANY GOVERNMENT INTERFERENCE THAT WOULD MEAN A HUGE TAX INCREASE BUT A HEALTH SYSTEM WITH A FAR SMALLER ROLE FOR GOVERNMENT THAN MR CLINTON ENVISIONS CONGRESS AND THE PRESIDENT HAVEN'T DONE ANYTHING TO RESTRAIN FEDERAL SPENDING THIS YEAR THE DEFICITREDUCTION LAW DID RAISE TAXES AND THERE IS A LEGITIMATE CASE THAT THE GOVERNMENT STILL SPENDS TOO MUCH BUT LAST SUMMER'S LAW DID REDUCE PAYMENTS THAT THE GOVERNMENT WILL MAKE TO HOSPITALS AND DOCTORS BY 48 BILLION OVER THE NEXT FIVE YEARS IT DID REDUCE BY 12 BILLION PAYMENTS THAT WOULD OTHERWISE HAVE GONE TO RETIRED GOVERNMENT EMPLOYEES IT DID SQUEEZE 3 BILLION OUT OF VETERANS' PROGRAMS AND 2 BILLION OUT OF FARM SUBSIDIES IN ALL THE CONGRESSIONAL BUDGET OFFICE FIGURES SPENDING WILL BE 129 BILLION LESS OVER FIVE YEARS IT ALSO FREEZES THE TOTAL THAT CONGRESS CAN SPEND ON EVERYTHING FROM BUYING BATTLESHIPS TO PAYING VETERINARIANS AT THE NATIONAL ZOO THAT IS EVERYTHING OTHER THAN BENEFITS LIKE SOCIAL SECURITY AND INTEREST ON THE FEDERAL DEBT AS DEFENSE SPENDING DECLINES THIS DISCRETIONARY SPENDING WILL DROP BELOW 7 OF GROSS DOMESTIC PRODUCT BY 1998 HALF THE LEVELS OF THE 1960S MR CLINTON AND CONGRESS MUST NOW DECIDE HOW TO LIVE WITH THESE CAPS ON SPENDING MAKING CHOICES THAT WILL GET MUCH ATTENTION IN THE NEXT FEW MONTHS ADOPTING VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT AGENDA WOULD CUT THE DEFICIT WITH PAIN FOR NO ONE BUT BUREAUCRATS MR GORE'S REVIEW BEGAN AS AN ATTEMPT TO IMPROVE GOVERNMENT EFFICIENCY LARGELY AT HIS INSISTENCE HOWEVER IT WAS PROMOTED AS A WAY TO CUT THE DEFICIT HIS SUGGESTION THAT IT WOULD REDUCE GOVERNMENT SPENDING BY 108 BILLION OVER FIVE YEARS DISINTEGRATED WHEN IT BECAME CLEAR THAT THE TOTAL WAS EXAGGERATED HE TOOK CREDIT FOR ELIMINATING JOBS THAT MR CLINTON ALREADY HAD ELIMINATED HE COUNTED MONEYSAVING PROPOSALS THAT THE WHITE HOUSE BUDGET OFFICE HAS EARMARKED NOT TO REDUCE SPENDING BUT TO PAY FOR SPENDING INCREASES ELSEWHERE FROM THE WHITE HOUSE PERSPECTIVE THE TRANSFORMATION OF THE GORE REPORT PROVED A TACTICAL DISASTER IT GAVE LEGITIMACY TO THE VIEW THAT THE DEFICIT CAN BE SUBSTANTIALLY REDUCED BY CUTTING THE GOBS OF FAT THAT HANG FROM THE FEDERAL BUREAUCRACY IT PROVOKED A STAMPEDE ON CAPITOL HILL TO SPEND THESE LARGELY PHANTOM SAVINGS IT DISCREDITED THE DEFICITREDUCTION LAW ALREADY ENACTED AND UNDERMINED WHITE HOUSE CREDIBILITY ON BUDGET NUMBERS THE MIDDLE CLASS HAS PAID TO CUT THE DEFICIT AND WON'T HAVE TO PAY MORE THE 1993 ROUND OF DEFICIT REDUCTION PRIMARILY TOOK FROM THE RICH THE PENTAGON AND HEALTHCARE PROVIDERS EXCEPT FOR THE BESTOFF SOCIAL SECURITY RECIPIENTS THE MIDDLE CLASS WAS HARDLY NICKED BY HIGHER TAXES THE CBO SAYS A FAMILY WITH ANNUAL INCOME OF 75000 WILL PAY 370 MORE A WEEK EVEN IF MR CLINTON'S HEALTH PLAN IS ENACTED AS PROPOSED THE FEDERAL GOVERNMENT ALMOST SURELY WILL BE FORCED INTO ANOTHER ROUND OF DEFICIT REDUCTION THIS DECADE BUT THE CBO SAYS THE EFFECTIVE FEDERALTAX RATE ON THE TOP 20 OF FAMILIES IS BACK UP TO WHERE IT WAS BEFORE RONALD REAGAN THERE IS NO CONSENSUS TO CUT DEFENSE DEEPER AND ANY FURTHER SAVINGS TO COME FROM PAYING DOCTORS AND HOSPITALS LESS ARE DESTINED TO GO FOR UNIVERSAL COVERAGE THE MIDDLE CLASS WON'T ESCAPE NEXT TIME THE POLITICAL DEBATE OVER HEALTH CARE TAXES AND SPENDING POLICY COULD BE FOUGHT WITH FACTS AND COMPETING PHILOSOPHIES THE LAST FEW MONTHS SUGGEST THAT INSTEAD IT WILL BE SHAPED BY SOPHISTRY 9312130006 931213 12 DAYS OF CHRISTMAS IF THEY'RE TOO OLD FOR DOLLS IT'S TIME TO INTRODUCE THEM TO ZANDAR BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL PRETEEN BOYS HAVE THEIR ROLLERBLADES THEIR GAME BOYS AND THEIR MORTAL KOMBAT FOR PRETEEN GIRLS THIS CHRISTMAS GAMES ABOUT SHOPPING TALKING ON THE PHONE AND FORTUNETELLING IN ELECTRONIC DREAM PHONE AKIN TO AN EARLIER GAME CALLED MYSTERY DATE A GIRL DIALS UP DIFFERENT NUMBERS TO FIND THE BOYFRIEND WHO HAS A CRUSH ON HER IT'S A GAME OF DEDUCTIVE LOGIC SAYS A SPOKESMAN FOR MILTON BRADLEY CO IN ASK ZANDAR A MERLINLIKE CHARACTER WITH A VOICE MICROCHIP ANSWERS QUESTIONS ALONG THE LINES OF WILL I GO TO THE PROM WITH A GEEK WE STAY AWAY FROM THE HEAVY QUESTIONS EXPLAINS THE SPOKESMAN AND IN ELECTRONIC MALL MADNESS PLAYERS COMPETE TO BUY NO FEWER THAN SIX DIFFERENT ITEMS FROM THE STORES ON THE BOARD AND THEN HUSTLE BACK TO A PARKING LOT ALL THREE GAMES BY MILTON BRADLEY HAVE BEEN SELLING FASTEVEN SELLING OUTDESPITE THEIR 35 PRICE TAGS WHAT DO YOU GET A GIRL WHO HAS LEFT BARBIE SAYS ROGER GODDU EXECUTIVE VICE PRESIDENT AT TOYS R US WHERE ZANDER HAS BECOME THE NO 1 GAME IN SALES VOLUME JENNIFER BAUMGARDNER AN EDITOR AT MS MAGAZINE FINDS THE IDEA OF MALL MADNESS OFFENSIVE IT ASSUMES THAT GIRLS JUST LOVE TO SHOP BUT THAT'S SUCH A DATED IDEA SHE SAYS THE POINT OF GAMES IS TO STIMULATE TO GET KIDS INVOLVED IN A CREATIVE PURSUIT NOT JUST TO REPEAT STEREOTYPES MALL MADNESS DOES INDEED GLORIFY SHOPPING UNTIL DROPPING A BATTERYOPERATED SPEAKER THE VOICE OF THE MALL TELLS GIRLS WHERE TO MOVE ON THE BOARD TO FIND GIANT SALES AND SPECIAL BARGAINS PLAYERS MUST STAY ON THEIR TOES HURRY YOUR FRIENDS MAY TRY TO BEAT YOU TO THE BARGAINS THE GAME WARNS TOYS R US'S MR GODDU SAYS ONE REASON FOR MALL MADNESS'S SUCCESS IS THAT PRETEEN GIRLS HAVE OLDER SISTERS WHO KNOW THAT HANGING AT THE MALL IS A KINDA COOL THING SO THEY WANT TO DO IT TOO DAVE WILSON MILTON BRADLEY'S PRESIDENT SEES IT MORE INNOCENTLY WHO DOESN'T LIKE SHOPPING AND BARGAINS HE SAYS 9312130005 931213 FORM + FUNCTION BY JOHN PIERSON ENOUGH IS ENOUGH HERE'S ONE MORE GIZMO THE WORLD CAN DO WITHOUT THAT'S HOW SOME FOLKS FEEL ABOUT PROSTRETCH THE HANDSOME HALFMOONSHAPED ROCKER DEVICE THAT'S RAPIDLY GONE FROM AUTOMOTIVE BRAKE SHOE TO ICON OF THE PHYSICALLY FIT SO FAR PROSTRETCH HAS PERSUADED 90000 BUYERS THAT THE DEVICE STRETCHES THE BACK OF THE LEG BETTER THAN ANYTHING ELSE A STRETCHED LEG RESISTS INJURIES AND PERFORMS BETTER THAN AN UNSTRETCHED LEG MOST EXPERTS AGREE BUT SOME EXPERTS PART COMPANY WITH PROSTRETCH'S CLAIM THAT IT PROVIDES A BETTER STRETCH THAN COMMON ARCHITECTURAL FEATURES FOUND AROUND THE HOUSE PROSTRETCH DOES NOTHING YOU CAN'T DO FOR YOURSELF SAYS LORI THEIN A PHYSICAL THERAPIST AT THE UNIVERSITY OF WISCONSIN'S SPORTSMEDICINE CENTER YOU CAN DO IT WITH YOUR WALL AT HOME OR A STEP STOP WASTING YOUR MONEY SAYS JANE BRITTON A PHYSICAL THERAPIST IN WOODSTOCK VT THE ONLY PERSON WHO NEEDS PROSTRETCH IS THE PERSON WHO CAN'T STRETCH ON THE STAIRS LAURA COLEMAN AN ATHLETIC TRAINER IN CHARLOTTESVILLE VA CALLS IT A GIMMICK FOR PEOPLE WHO ARE FANATICAL ABOUT THEIR SPORTS PROSTRETCH'S FANS ARE AT LEAST AS VEHEMENT IN THEIR DEFENSE OF THE LEG STRETCHER PROSTRETCH REACHES SPOTS THAT WERE NEVER REACHED BEFORE LIKE THE BOTTOM OF YOUR FOOT SAYS JACK FOLEY DIRECTOR OF SPORTS MEDICINE AT LEHIGH UNIVERSITY A STAIR OR LEANING AGAINST A WALL PROVIDES A GOOD LITTLE STRETCH FOR SOMEONE WHO SWIMS SKIS DOWNHILL OR PLAYS HOCKEY SAYS DANE THOMAS A STRENGTH AND CONDITIONING SPECIALIST IN VAIL COLO SUCH SPORTS AS SQUASH RUNNING OR SOFTBALL NEED THE EXTRA 30 TO 40 OF CONTROLLED DIRECTED STRETCHING OF PROSTRETCH KAREN MALONEY BACKSTROM AN ASSISTANT PROFESSOR OF PHYSICAL THERAPY AT THE UNIVERSITY OF COLORADO SAYS HER RESEARCH INDICATES THAT PEOPLE WHO USE PROSTRETCH GAIN FOUR TIMES AS MUCH ANKLE FLEXIBILITY AS THOSE WHO STRETCH AGAINST A WALL COLLEGES UNIVERSITIES GET ON THE TEAM THE CORPORATE DESIGN FOUNDATION BOSTON SAYS US HIGHER EDUCATION IS FAILING TO KEEP UP WITH BUSINESS'S NEED FOR PROFESSIONALS WHO KNOW HOW TO TEAM UP WITH OTHER DISCIPLINES MORE AND MORE COMPANIES ARE USING MULTIDISCIPLINARY GROUPS TO DEVELOP BETTER PRODUCTS FASTER SAYS THE FOUNDATION BUT ONLY A HANDFUL OF CAMPUS PROGRAMS COMBINE ENGINEERING BUSINESS DESIGN AND OTHER DISCIPLINES ADDS THE GROUP CARNEGIE MELLON AND A JOINT EFFORT OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND THE RHODE ISLAND SCHOOL OF DESIGN ARE THE ONLY TRUE PROGRAMS SAYS PETER LAWRENCE CHAIRMAN OF THE FOUNDATION BUSINESSMEN AGREE ON THE NEED JIM STRYKER MANAGER OF PRODUCT DEVELOPMENT AT INGERSOLLRAND SAYS NO ONE IS TEACHING IT BUT GLENN GARDNER CHRYSLER'S GENERAL MANAGER LARGECAR ENGINEERING SEES THE SCHOOLS STARTING TO CATCH ON HE SAYS LAST YEAR WE HIRED THREE ENGINEERS FROM MIT AND THEY UNDERSTOOD TEAMWORK PERFECTLY THE BIG BAD WOLF WOULD HAVE DIED JUST HUFFING AND PUFFING A FLORIDA COMPANY MAKES A BUILDING BLOCK THAT IT SAYS IS CHEAPER AND STRONGER THAN ORDINARY BLOCKS LIKE THE COLUMNS IN THE PARTHENON THE INTRALOCK CONCRETE BLOCK SYSTEM IS HELD TOGETHER FROM THE INSIDE NOT FROM THE OUTSIDE A REGULAR CONCRETE BLOCK WHICH RESEMBLES A SQUARISH FIGURE EIGHT NEEDS MORTAR TO JOIN IT WITH ITS NEIGHBORS AND EXTERNAL BEAMS AND COLUMNS TO TIE THE WALL TOGETHER AN INTRALOCK BLOCK WHICH RESEMBLES AN UPENDED BIG MAC NEEDS NEITHER MORTAR NOR OUTSIDE BEAMS AND COLUMNS THE BLOCKS ARE STACKED DRY STEEL REINFORCING BARS ARE SLIPPED IN AND THE WALL IS PUMPED FULL OF MILKTHIN GROUT WHEN IT HARDENS THE GROUT LOCKS ALL THE BLOCKS TOGETHER IN A GRID OF INTERNAL BEAMS AND COLUMNS SEPARATE AIR CHANNELS PROVIDE SPACE FOR WIRING PIPING AND INSULATION INTRALOCK POMPANO BEACH SAYS MORE THAN 100 INDUSTRIAL AND RESIDENTIAL BUILDINGS IN FLORIDA AND ABROAD HAVE BEEN BUILT WITH ITS BLOCK GERALD LUNDRIGAN A MARGATE FLA CONTRACTOR HAS USED INTRALOCK BLOCKS TO BUILD A LOBSTER WAREHOUSE THE FOUNDATION OF A HOTEL AND A RESIDENCE THE LOBSTER HOUSE TOOK 18 DAYS TO BUILD HE SAYS RATHER THAN THE 25 DAYS IT WOULD HAVE TAKEN WITH CONVENTIONAL BLOCK A SINGLE GOOD MASON AND A COUPLE OF UNSKILLED HELPERS ARE ABLE TO DO THE WORK OF FIVE MASONS MR LUNDRIGAN SAYS MIAMI CONTRACTOR PAUL TAGLIERO SAYS AN INTRALOCK WALL IS A LOT MORE SOLID ADDING THAT SOMEONE WITH A HAMMER CAN GET THROUGH A REGULAR WALL THE INTRALOCK HE CAN'T INTRALOCK HAS BEEN AROUND FOR A FEW YEARS WHY ISN'T THE BLOCK CATCHING ON FASTER CHANGE COMES SLOW TO THE BUILDING INDUSTRY REPLIES KATHY SEDGWICK EXECUTIVE DIRECTOR OF THE FOUNDATION OF WALL AND CEILING INDUSTRIES AN INNOVATION CAN TAKE YEARS AND YEARS TO GET ESTABLISHED 9312130004 931210 WORLD TOURISM COUNCIL DEPICTS TRAVEL AS JOB CREATOR FOR A SLUGGISH EUROPE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS GEOFFREY LIPMAN PRESIDENT OF THE WORLD TRAVEL AND TOURISM COUNCIL HAS AN IDEA FOR EUROPEAN GOVERNMENTS LOOKING TO CREATE JOBS DEVOTE MORE TIME AND MONEY TO ONE OF THE REGION'S LARGEST EMPLOYERS THE TOURISM INDUSTRY AFTER ALL HE SAYS EUROPE IS THE WORLD'S LEADING DESTINATION A TITLE IT MIGHT LOSE IF IT DOESN'T TAKE ACTION EUROPE'S LOSING MARKET SHARE EVERYBODY KNOWS THAT MR LIPMAN SAYS YET IT DOESN'T PUT ANYTHING NEAR THE AMOUNT OF EFFORT INTO PROMOTION AS THE US OR AUSTRALIA INSTEAD HE SAYS GOVERNMENTS' WHEELSPINNING BUREAUCRACIES CULTIVATE THE HABIT OF HITTING TRAVELERS WITH A BEVY OF TAXES ON ITEMS SUCH AS HOTEL ROOMS AIRLINE TICKETS AND AIRPORT USE MR LIPMAN'S POSITION MIGHT SOUND LOGICAL COMING FROM THE PRESIDENT OF AN INDUSTRY LOBBYING GROUP BUT IT'S ACTUALLY A NEW ONE FOR THE WTTC FOUNDED IN EARLY 1991 BY AMERICAN EXPRESS CO'S THENCHAIRMAN JAMES D ROBINSON III IT IS MADE UP OF LEADERS FROM MANY OF THE WORLD'S LEADING TRAVELRELATED COMPANIES ITS 65 MEMBERS INCLUDE WALT DISNEY CO CHAIRMAN MICHAEL EISNER BRITISH AIRWAYS PLC CHAIRMAN SIR COLIN MARSHALL FORTE PLC CHAIRMAN ROCCO FORTE BOEING CO CHAIRMAN FRANK SHRONTZ AND MARRIOTT INTERNATIONAL INC CHAIRMAN J WILLARD MARRIOTT JR UNTIL RECENTLY THE GROUP TOOK A LOWKEY APPROACH IT LOOKED AT TOURISM'S EFFECT ON GROSS DOMESTIC PRODUCT AND PUT FORWARD STUDIES PORTRAYING THE INDUSTRY AS THE LARGEST IN THE WORLD ACCORDING TO ITS MOST RECENT SURVEY CONDUCTED BY WHARTON ECONOMETRIC FORECASTING ASSOCIATES TOURISM WILL CONTRIBUTE 34 TRILLION OR 10 TO GLOBAL GDP NEXT YEAR NOW HOWEVER THE WTTC IS CHANGING ITS MESSAGE IN A SLOWGROWTH ERA IN WHICH GOVERNMENTS WORRY ABOUT DOUBLEDIGIT UNEMPLOYMENT THE WTTC IS FOCUSING ON TOURISM'S POTENTIAL BENEFITS THE REASON WE'RE FOCUSING ON JOBS IS BECAUSE THAT'S WHERE THE POLITICAL ATTENTION IS TURNED TO MR LIPMAN SAYS IT'S OPPORTUNISTIC I DON'T DENY IT THIS NEW APPROACH CULMINATED THIS WEEK WITH THE PRESENTATION OF A PAPER TO EUROPEAN COMMUNITY MINISTERS THAT CALLS FOR A SERIES OF PROTRAVEL MOVES ELIMINATION OF BORDER BUREAUCRACY INVESTMENT IN INFRASTRUCTURE OPENING OF TOURISM MARKETS AND LOWERING OF TAXES ON TRAVELERS THE GROUP ALSO FAVORS LIBERAL AVIATION POLICIES IN ITS PAPER THE WTTC PREDICTS THAT IN 1994 THE INDUSTRY WILL ACCOUNT DIRECTLY AND INDIRECTLY FOR 23 MILLION JOBS IN WESTERN EUROPE AND WILL GENERATE REVENUE OF 13 TRILLION ECU 1473 TRILLION BY 2005 IT PREDICTS THOSE FIGURES WILL GROW TO 26 MILLION JOBS AND REVENUE OF THREE TRILLION ECU MR LIPMAN HOWEVER PREFERS A SIMPLER RATIO FOR EVERY ADDITIONAL 1 MILLION IN REVENUE GENERATED BY THE INDUSTRY 20000 NEW JOBS ARE CREATED THEN THERE IS WHAT MR LIPMAN CALLS THE INDUSTRY'S HIDDEN BEAUTY THE MARKET COMES TO THE MARKETPLACE IN OTHER WORDS IT COUNTS AS AN EXPORT YET THERE'S NO NEED TO WORRY ABOUT TRADE QUOTAS OR TARIFFS BECAUSE THE EXPORTING COUNTRY IS THE ONE THAT ADMITS THE TOURISTS AGAINST SUCH A BACKGROUND MR LIPMAN CALLS THE EC'S EFFORTS ENTIRELY INADEQUATE THE EC'S TOURISM ACTION PLAN PUTS UP A MERE 18 MILLION ECU 204 MILLION FOR TOURISM PROMOTION OVER A THREEYEAR PERIOD ENDING IN 1995 MR LIPMAN CONCEDES THAT MORE MONEY FINDS ITS WAY TO THE INDUSTRY THROUGH OTHER PROGRAMS BUT HE SAYS GOVERNMENTS HAVE NEVER THOUGHT ABOUT STIMULATING THE INDUSTRY COLLECTIVELY INSTEAD HE SAYS GOVERNMENTS THINK OF AIRLINES HOTELS MANUFACTURERS TRAVEL AGENCIES AND RESTAURANTS AS SEPARATE DISTINCT INDUSTRIES OFFICIALS FROM THE EC ACKNOWLEDGE THERE IS MUCH THAT COULD BE DONE BUT RICHARD DICKENSON AN ADMINISTRATOR IN THE COMMISSION'S TOURISM DIVISION DEFENDS THE EC BY NOTING THAT THE EUROPEAN PARLIAMENT HAS AUTHORITY TO INCREASE SPENDING BEYOND THE ACTION PLAN LEVEL AND WHILE MR DICKENSON SAYS EUROPE HAS INDEED LOST A SHARE OF WORLD TOURISM IN THE PAST 15 YEARS DROPPING FROM A 70 SHARE OF GLOBAL RECEIPTS TO A 60 SHARE HE SAYS IT IS EASILY EXPLAINED BY WORLDWIDE GROWTH IN TRAVEL IN ABSOLUTE TERMS TOURISM IS GROWING IN EUROPE AS WELL AS OTHER PLACES HE SAYS THE WTTC'S NEW EMPHASIS ON JOBS DOESN'T MEAN ITS PURPOSE HAS CHANGED OUR GOAL IN LIFE IS TO GET GOVERNMENTS TO LOOK AT TRAVEL AND TOURISM IN A WAY THEY HAVEN'T DONE BEFORE MR LIPMAN SAYS BUT THE NEW FOCUS IS A SIGN THE WTTC IS FINDING ITS VOICE AS IT APPROACHES ITS THIRD BIRTHDAY THE BRUSSELSBASED GROUP WITH OFFICES IN NEW YORK LONDON AND HONG KONG PLANS TO STOP ACCEPTING MEMBERS WHEN IT REACHES 70 IT HOPES A LIMITED NUMBER OF HEAVY HITTERS WILL BE ABLE TO ACT MORE QUICKLY AND IN GREATER UNISON THAN WOULD A MORE ALLINCLUSIVE GROUP WE'RE NOT TRYING TO REPRESENT EVERYBODY WE'RE TRYING TO BE REPRESENTATIVE MR LIPMAN SAYS SO WE CAN SPEND MORE TIME ON ACTION THAN ON CONSULTATION IN FACT THE WTTC NOW DOES MORE THAN SIMPLY LOBBY THE GROUP HAS BEEN ASKED BY VARIOUS GOVERNMENTS TO TACKLE SPECIFIC PROJECTS FOR INSTANCE IT IS STUDYING THE ECONOMIC EFFECT OF TRAVEL AND TOURISM FOR ARGENTINA BRAZIL ISRAEL AND HUNGARY OTHER PROJECTS INCLUDE THE CREATION OF THE GREEN GLOBE A TOURISM GUIDE MODELED ON THE MICHELIN GUIDE WITH AN EMPHASIS ON ENVIRONMENTAL ISSUES THE PRODUCTION WITH BOEING OF A PUBLIC SERVICE ANNOUNCEMENT AND A 10MINUTE VIDEO SHOWING TOURISM'S BENEFITS A SECOND MISSION TO CHINA TO CONSULT ON TOURISM AND THE LAUNCH OF A MAGAZINE VIEWPOINT WITH ARTICLES WRITTEN BY WTTC MEMBERS IN ADDITION MR LIPMAN SERVES ON THE EC'S SOCALLED COMMITTEE OF WISE MEN A GROUP OF 12 EXPERTS APPOINTED BY EC TRANSPORT COMMISSIONER ABEL MATUTES TO EXPLORE POSSIBLE CURES FOR THE EC'S TROUBLED AIRLINE INDUSTRY BUT MR LIPMAN STILL FINDS TIME TO WORRY ABOUT TOURISM AS A WHOLE AND ABOUT EUROPEAN GOVERNMENTS' ATTENTIVENESS TO THE INDUSTRY EITHER WE'VE DONE SOME THING WRONG HE SAYS OR WE HAVEN'T SUCCEEDED IN GETTING THE MESSAGE ACROSS 9312130003 931213 FOREIGN ACCESS STIRS DEBATE ON CONTROLLING HIGHTECH EXPORTS WASHINGTON THE COMMERCE DEPARTMENT REACHED A PRELIMINARY CONCLUSION THAT CHINA AND RUSSIA COULD BUY HIGHSPEED FIBEROPTIC TRANSMISSION EQUIPMENT FROM A VARIETY OF SOURCES OUTSIDE THE US BOOSTING ARGUMENTS THAT THE US SHOULD EASE EXPORT CONTROLS ON THE PRODUCTS BUT IN A LETTER TO AMERICAN TELEPHONE & TELEGRAPH CO THE DEPARTMENT SAID THE SITUATION REGARDING FOREIGN AVAILABILITY IS IN A STATE OF FLUX AND WARNED THAT THE FINAL CONCLUSION EXPECTED JAN 9 MIGHT COME OUT DIFFERENTLY DEFENSE AND INTELLIGENCE AGENCIES HAVE OPPOSED EASING RESTRICTIONS ON FIBEROPTIC EQUIPMENT BECAUSE DOING SO WOULD HELP CHINESE AND RUSSIAN MILITARY AND MAKE IT HARDER TO INTERCEPT THEIR COMMUNICATIONS THE JAN 9 DATE IS ONLY TWO DAYS BEFORE PRESIDENT CLINTON IS SCHEDULED TO MEET WITH RUSSIAN PRESIDENT BORIS YELTSEN IN MOSCOW A FACT THAT COULD ADD PRESSURE ON THE ADMINISTRATION TO LIFT CONTROLS AT&T HAS BEEN LOBBYING HARD TO GET THE CONTROLS REVERSED THE EXPORT CONTROLS ARE ADMINISTERED BY THE 17MEMBER COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS WHICH WAS FORMED AFTER WORLD WAR II TO PREVENT COMMUNIST NATIONS FROM GETTING HIGHTECH EQUIPMENT FROM THE WEST AT&T SAID IT WELCOMED THE COMMERCE DEPARTMENT'S RULING THE DECISION SIGNALS THE BEGINNING OF THE END OF EXPORT CONTROLS ON TELECOMMUNICATIONS AN AT&T SPOKESMAN SAID AT&T ARGUES THAT FOREIGN COMPETITORS WHO AREN'T SUBJECT TO EXPORT CONTROLS GET A BIG ADVANTAGE IN SALES OF FIBEROPTIC EQUIPMENT THE TELECOMMUNICATIONS COMPANY ESTIMATES THAT SALES OF SUCH EQUIPMENT IN CHINA WILL GROW TO MORE THAN 300 MILLION BY 1996 9312130002 931213 TECHNOLOGY INTEL SYNOPTICS PLAN JOINT EFFORT TO SPEED NETWORK TRANSFERS SANTA CLARA CALIF INTEL CORP AND SYNOPTICS COMMUNICATIONS INC TODAY WILL ANNOUNCE THE LATEST IN A SERIES OF ALLIANCES AIMED AT SUPERCHARGING CORPORATE DATA NETWORKS THE COMPANIES BOTH BASED HERE PLAN TO SWAP TECHNOLOGIES AND DEVELOP HARDWARE THAT ALLOWS USERS TO TRANSFER MORE THAN 100 MILLION PIECES OF INFORMATION PER SECOND THAT'S 10 TIMES THE SPEED OF ETHERNET THE MOST POPULAR TECHNOLOGY USED ON LOCAL AREA NETWORKS INTEL BEST KNOWN FOR MICROPROCESSOR CHIPS WILL PRODUCE CIRCUIT BOARDS THAT CONNECT DESKTOP COMPUTERS TO THE NEW FAST NETWORKS WHICH WILL BE COORDINATED BY SWITCHING DEVICES CALLED HUBS TO BE BUILT BY SYNOPTICS THE FIRST HARDWARE WILL BE SHIPPED IN THE SECOND QUARTER OF 1994 THE COMPANIES SAID SOME CUSTOMERS ARE RUNNING INTO BOTTLENECKS TRYING TO MOVE COMPLEX IMAGES AND OTHER LARGE DATA FILES AROUND THEIR NETWORKS BUT A PLETHORA OF SPEEDY SOLUTIONS IS ON ITS WAY INTEL AND SYNOPTICS BELONG TO A GROUP OF COMPANIES CALLED THE FAST ETHERNET ALLIANCE THAT ARE EXPECTED TO SHIP PRODUCTS USING ONE TECHNOLOGY FOR SUPERCHARGING ETHERNET GEORGE PRODAN HIGHSPEED PRODUCT LINE MANAGER FOR 3COM CORP SAID IT WILL BEGIN SELLING ITS OWN FAST ETHERNET HARDWARE AROUND THE SAME TIME AND AN INCOMPATIBLE TECHNOLOGY CALLED ANYLAN ALSO OFFERING 100MEGABIT SPEEDS IS BEING BACKED BY HEWLETTPACKARD CO AND INTERNATIONAL BUSINESS MACHINES CORP BOTH STANDARDS ARE CONSIDERED AN INTERIM STEP TOWARD AN EVEN MORE ADVANCED TECHNOLOGY CALLED ATM FOR ASYNCHRONOUS TRANSFER MODE WHICH IS TAKING OFF SLOWLY BECAUSE OF ITS HIGH PRICE 9312130001 931213 THE BLOB THAT KILLED BANK REFORM BY ROBERT R GLAUBER THE US BANK REGULATORY SYSTEM NEEDS TO BE FIXED THE CLINTON ADMINISTRATION DESERVES CREDIT FOR ADDRESSING THE PROBLEM BUT ITS PROPOSED REFORM IS NOT AN IMPROVEMENT THIS LATEST EXAMPLE OF REINVENTING GOVERNMENT IS TOUTED AS STREAMLINING THE PRESENT RUBE GOLDBERG SYSTEM BY CONSOLIDATING FEDERAL BANKING REGULATION INTO A SINGLE INDEPENDENT AGENCY WHAT IT WOULD DO IN FACT IS REPLACE RUBE GOLDBERG WITH THE BLOB A MONOLITHIC CENTRALIZED PLODDING REGULATOR ALMOST CERTAIN TO BE LESS INNOVATIVE AND MORE COSTLY THE RESULT WOULD BE A BANKING SYSTEM THAT WILL CHARGE HIGHER RATES TO BORROWERS PAY LOWER RATES TO DEPOSITORS AND BE LESS ABLE TO TAKE ON INTERNATIONAL COMPETITION AND WHILE THE NEW SINGLE REGULATOR MIGHT BE INDEPENDENT OF WHATEVER ADMINISTRATION IS IN OFFICE IT WOULD BE INCREASINGLY VULNERABLE TO CONGRESSIONAL PRESSURE AS MOST OTHER INDEPENDENT AGENCIES ARE COMPETITION AMONG REGULATORS WOULD LIKELY BE REPLACED BY COMPETITION AMONG STRONG CONGRESSIONAL COMMITTEE CHAIRMEN WHICH SOME MIGHT VIEW AS A REINVENTION OF GOVERNMENT AT ITS WORST A SINGLE AGENCY IS BILLED AS A COSTSAVER UNDER THE PLAN EXISTING SUPERVISORY AND REGULATORY PERSONNEL OF THE BANKING AGENCIES ALMOST 11000 IN ALL WOULD BE TRANSFERRED TO THE NEW FEDERAL BANKING COMMISSION FBC BUT THERE WOULD BE NO PRESSURE FOR THE FBC TO DOWNSIZE PERSONNEL AND OPERATE EFFICIENTLY WHAT MONOPOLIST GOVERNMENT REGULATOR HAS EVER VOLUNTARILY SHRUNK ITSELF MOREOVER SUPERVISORY FEES CHARGED TO THE BANKS WOULD ACTUALLY GO UP SINCE ALL THE COSTS OF THE FBC WOULD FALL ON THE BANKS COMPARED WITH THE PRESENT SYSTEM WHERE THE FEDERAL RESERVE AND FEDERAL DEPOSIT INSURANCE CORP ABSORB SUPERVISION COSTS THERE ARE OTHER COSTS AND RISKS TO THE BLOB REFORM THE PRESENT SYSTEM WITH ALL ITS OVERLAPS AND INEFFICIENCIES HAS BEEN AN ENGINE FOR HEALTHY INNOVATION THE 1991 BANKING LAW TOOK STEPS TO ENSURE THAT INNOVATION DOESN'T COME AT THE PRICE OF BANKING SAFETY AND SOUNDNESS BUT IT ALSO REDUCED THE INNOVATIVE ROLE OF STATE REGULATION WHICH HAS SPONSORED SO MANY USEFUL NEW IDEAS INCLUDING ADJUSTABLE RATE MORTGAGES AND NOW ACCOUNTS WITH SO MUCH OF THE RESPONSIBILITY FOR NEW IDEAS NOW THRUST UPON FEDERAL REGULATION WHAT CONFIDENCE CAN WE HAVE THAT A NEW MONOLITHIC AGENCY WILL BE RESPONSIVE TO THE ACCELERATING PACE OF CHANGE IN THE MARKETPLACE MOREOVER IF THE BLOB SMOTHERS CREATIVITY WHAT BANKS WILL FEEL THE EFFECTS MOST PROBABLY THE SMALLER INDEPENDENT ONES WHICH WILL SEE THE SUPERVISORY ROLE OF THE FEDERAL RESERVE AND FDIC THEIR TRADITIONAL REGULATORS ABSORBED INTO THE FBC THE CLINTON BANKING REFORM PROPOSALS ARE THE LATEST IN A LONG LINE EARLIER PROPOSALS SUCH AS THOSE MADE BY THE BUSH REGULATORY REFORM TASK GROUP IN 1985 AND THE TREASURY DEPARTMENT IN 1991 TRIED TO SOLVE SPECIFIC PROBLEMS NOT MERELY TO REARRANGE THE BUREAUCRATIC BOXES TO ACHIEVE AN ATTRACTIVE ORGANIZATION CHART TWO STRUCTURAL FAILINGS DO DEMAND ATTENTION 1 OVERLAPPING AND CONFLICTING REGULATION IMPOSED ON A SINGLE BANKING ORGANIZATION AND 2 COMMINGLING THE RESPONSIBILITY OF REGULATOR AND INSURER IN THE SAME AGENCY THE FIRST FAILING IS THAT MOST OF THE 5500 BANKS ORGANIZED UNDER HOLDING COMPANIES CURRENTLY ARE SUBJECT TO TWO FEDERAL REGULATORY AGENCIES WHICH PRODUCES CONFLICT CONFUSION AND INEFFICIENCY THERE SHOULD BE ONE FEDERAL BANK REGULATORY AGENCY FOR EACH BANKING ORGANIZATION NOT ONE FEDERAL AGENCY FOR THE WHOLE SYSTEM THE SECOND NEEDED CHANGE IS TO GET THE FDIC OUT OF THE REGULATION BUSINESS A REGULATOR SHOULD BE WILLING TO SPONSOR INNOVATION BUT AN INSURER MUST BE HARDNOSED AND CONSERVATIVE SUSPECT OF NEW INITIATIVES WHICH MIGHT CARRY RISK TO ITS FUNDS MIXING THESE INHERENTLY CONFLICTING PERSPECTIVES IS A PRESCRIPTION FOR DISASTER THE FEDERAL HOME LOAN BANK BOARD WITH ITS BIAS TOWARD INNOVATION AND LAXITY WAS BOTH REGULATOR AND INSURER OF THE S&LS THAT EXPERIMENT COST THE TAXPAYERS MORE THAN 200 BILLION INEVITABLY A FINANCIAL SYSTEM LIKE OURS TEEMING WITH HIGHLY COMPETITIVE INSTITUTIONS WILL RUN CLOSE TO THE EDGE FROM TIME TO TIME IN 1987 IT WAS A FINANCIAL SYSTEM MELTDOWN NARROWLY AVERTED WITH THE FEDERAL RESERVE'S INTERVENTION IN 199091 THE PENDULUM HAD SWUNG AND IT WAS A CREDIT CRUNCH FOR WHICH THE BUSH ADMINISTRATION WAS HELD RESPONSIBLE BY MANY THIS SUGGESTS ANOTHER PRINCIPLE FOR DESIGNING THE REGULATORY STRUCTURE A GOVERNMENT ENTITY THAT WILL BE HELD RESPONSIBLE FOR A BREAKDOWN AND CHARGED WITH CLEANING UP THE MESS MUST HAVE AUTHORITY TO REGULATE AND SUPERVISE THE SYSTEM THAT CREATED THE DISASTER IT IS DANGEROUS AND PERHAPS POLITICALLY UNFAIR TO TAKE AUTHORITY FROM THE TREASURY AND FEDERAL RESERVE THEN BLAME THEM FOR A CRISIS AND FINALLY LOOK TO THEM TO RESOLVE IT IF THE FEDERAL RESERVE IS TO HANDLE A LIQUIDITY CRISIS THAT THREATENS THE PAYMENTS SYSTEM IT SHOULD HAVE CONTINUING SUPERVISORY AUTHORITY FOR THE LARGE BANKS THAT COULD CAUSE SYSTEMIC DAMAGE ONLY AS A FRONTLINE REGULATOR WILL THE FEDERAL RESERVE HAVE THE KNOWLEDGE INFLUENCE AND LINES OF COMMUNICATION TO ACT QUICKLY AND SURELY LOOKING OVER THE SHOULDER OF ANOTHER REGULATOR OR SITTING ON ITS BOARD IS NOT ENOUGH SIMILARLY THE ADMINISTRATION CAN BE HELD ACCOUNTABLE FOR THE ECONOMIC CONSEQUENCES OF DISTORTIONS IN THE BANKING SYSTEM ONLY IF IT SHARES REGULATORY AUTHORITY AS WELL THAT IS WHY TREASURY HAS HAD A HAND IN BANKING REGULATION SINCE 1863 THE FINAL BUILDING BLOCK FOR REFORM THE NUMBER OF FEDERAL REGULATORS SHOULD BE REDUCED TO A MINIMUM CONSISTENT WITH MAINTAINING THE CHECKS AND BALANCES OF REGULATORY DIVERSITY IN FACT A NEW STRUCTURE COULD BE BUILT THAT WOULD CONTAIN THESE FEATURES WITH MINIMAL DISLOCATION TO THE PRESENT SYSTEM THE NUMBER OF FEDERAL REGULATORS COULD BE REDUCED FROM FOUR TO TWO AN EXPANDED BUREAU OF THE TREASURY WOULD REGULATE ALL BUT THE LARGEST NATIONAL BANKS ALL S&LS AND ALL STATECHARTERED BANKS NOT MEMBERS OF THE FEDERAL RESERVE SYSTEM TOGETHER WITH THEIR HOLDING COMPANIES THE FEDERAL RESERVE WOULD REGULATE THE LARGEST BANKS WHETHER FEDERAL OR STATECHARTERED AND STATECHARTERED MEMBER BANKS TOGETHER WITH THEIR HOLDING COMPANIES THE FDIC WOULD PROTECT THE INSURANCE FUNDS AND MANAGE RESOLUTIONS OF FAILING OR FAILED INSTITUTIONS BUT IT WOULD NOT REGULATE BANKS THE TWO FEDERAL REGULATORS WOULD BE CHARGED WITH COORDINATING POLICIES AND PRACTICES THE PRESENT BANK REGULATORY SYSTEM NEEDS FIXING BUT THE CLINTON ADMINISTRATION PROPOSAL TO CREATE A SINGLE MONOLITHIC REGULATOR INDEPENDENT OF THE TREASURY AND THE CENTRAL BANK IS AS RISKY AS IT IS UNPRECEDENTED TAKING A PATH DIFFERENT FROM VIRTUALLY ALL OTHER COUNTRIES WITH DEVELOPED FINANCIAL SYSTEMS IT IS UNLIKELY TO PRODUCE THE COST SAVINGS CLAIMED FOR IT AND LIKELY TO STIFLE THE INNOVATION THAT HAS ALLOWED OUR BANKING SYSTEM TO ACHIEVE WHAT LEVEL OF COMPETITIVENESS IT HAS FINALLY THE CLINTON PLAN VIOLATES THE PRINCIPLE THAT THOSE ENTITIES THE FEDERAL RESERVE AND THE ADMINISTRATION THAT WILL BE HELD RESPONSIBLE FOR A FINANCIAL CRISIS AND WHOSE INFORMED AND QUICK ACTION CAN AVERT IT SHOULD HAVE A REGULATORY ROLE RESTRUCTURING THE BANK REGULATORY SYSTEM IS A FARREACHING DECISION IT SHOULD BE DONE BUT ONLY AFTER CAREFUL ANALYSIS AND FULL DEBATE WHEN THE WRONG REGULATORY STRUCTURE FOR S&LS COST TAXPAYERS A BUNDLE THE PUBLIC BLAMED CONGRESS AND THE ADMINISTRATION NOT JUST THE REGULATOR IF BANK REGULATORY REFORM LEADS TO MORE RISK AND LESS COMPETITIVE BANKS THE PUBLIC WON'T JUST BLAME THE BLOB MR GLAUBER WAS UNDERSECRETARY OF THE TREASURY FOR FINANCE IN THE BUSH ADMINISTRATION AND IS NOW A LECTURER AT THE KENNEDY SCHOOL OF GOVERNMENT HARVARD UNIVERSITY 9312130139 931118 POLITICS & PEOPLE GUN CONTROL IS ESSENTIAL TO US CRIME CONTROL BY ALBERT R HUNT WHEN PENNSYLVANIA SEN JOSEPH CLARK WAS DEFEATED BY REPUBLICAN RICHARD SCHWEIKER IN 1968 IT WAS WIDELY BELIEVED THAT HIS SUPPORT FOR GUN CONTROL WAS A MAJOR FACTOR IN THE DEMOCRAT'S DEFEAT ACTUALLY THE PATRICIAN PHILADELPHIAN HAD FALLEN OUT OF TOUCH WITH HIS CONSTITUENTS AND DICK SCHWEIKER WAS A TAILORMADE CANDIDATE FOR PENNSYLVANIA GUN CONTROL HAD LITTLE TO DO WITH THE OUTCOME IT DIDN'T MATTER THE PERCEPTION THAT JOE CLARK AND A FEW OTHERS LOST BECAUSE OF THE GUN LOBBY PETRIFIED POLITICIANS AND SET BACK ANY SERIOUS GUN CONTROL FOR YEARS THE NATIONAL RIFLE ASSOCIATION AND ITS CONGRESSIONAL ALLIES ARE TRYING TO RESURRECT THAT OLD CANARD TODAY ARGUING THAT THE DEFEAT OF PROGUNCONTROL GUBERNATORIAL CANDIDATES THIS MONTH AND SUPPORT FOR OTHER ANTICRIME MEASURES SHOWS VOTERS WANT CRIME CONTROL NOT GUN CONTROL THIS TIME THE POLITICIANS MAY NOT BE INTIMIDATED OVER THE PAST WEEK THE HOUSE HAS PASSED THE BRADY BILL REQUIRING A FIVEDAY WAITING PERIOD TO PURCHASE A HANDGUN THIS IS NAMED FOR PRESIDENT REAGAN'S PRESS SECRETARY JAMES BRADY WHO WAS SHOT IN 1981 YESTERDAY THE SENATE APPROVED ANOTHER NRAOPPOSED PROVISION BANNING VARIOUS ASSAULT RIFLES LET'S HOPE THIS IS ONLY A FIRST STEP IN AN ALLOUT ATTACK ON GUNS AND THE THUGS WHO RUN THE NRA THE PICTURE WHILE NOT NEW IS HORRIFYING THERE ARE AN ESTIMATED 65 MILLION TO 70 MILLION HANDGUNS IN AMERICA TODAY OR MORE HANDGUNS THAN THERE ARE CHILDREN UNDER THE AGE OF 21 MORE THAN 100000 KIDS TAKE GUNS TO SCHOOL A FEW YEARS AGO THERE WERE 10099 HANDGUNRELATED MURDERS IN THE US THAT SAME YEAR THERE WERE 22 HANDGUNRELATED MURDERS IN BRITAIN 68 IN CANADA AND 87 IN JAPAN THE CRIME ISSUE RESONATES WITH VOTERS IN NEW JERSEY THIS FALL IT WAS THE PROGUNCONTROL POSITION THAT KEPT UNPOPULAR GOV JIM FLORIO IN A CLOSE RACE HIS POLLSTER SAYS IN VIRGINIA THE SUCCESSFUL GOP CANDIDATE STEERED THE FOCUS FROM GUN CONTROL TO OTHER CRIME ISSUES BUT HIS DEMOCRATIC OPPONENT MARY SUE TERRY ILLUSTRATED A PROBLEM PLAGUING MORE THAN A FEW DEMOCRATS GUN CONTROL ALONE WON'T CONVINCE VOTERS YOU'RE TOUGH ON CRIME THAT MESSAGE IS BEING HEARD IN CONGRESS SOME LIBERAL HOUSE DEMOCRATS LIKE CHARLES SCHUMER OF NEW YORK ARE PUSHING ANTICRIME MEASURES RANGING FROM MANDATORY DRUG TREATMENT FOR FEDERAL PRISONERS TO BOOT CAMPS FOR YOUNG OFFENDERS TEENAGE CRIMINALS HAVE TO BE DEALT WITH IN A TOUGHER FASHION AND MORE PRISONS ARE REQUIRED LIBERALS SHOULD ALSO BE SOBERED BY THE OVERWHELMING VOTE IN WASHINGTON STATE TO DENY PAROLE TO THREETIMECONVICTED VIOLENT OFFENDERS THE KNEEJERK OPPOSITION OF SOME TO SUCH INITIATIVES REFLECTS AN UNWILLINGNESS TO ACKNOWLEDGE THE PATHOLOGY OF VIOLENCE AND DISINTEGRATION OF MANY COMMUNITIES BUT THE MOST IMPORTANT ADDITION TO THE DEMOCRATS' ANTICRIME ARSENAL IS A NEW APPRECIATION OF THE NEED FOR MORE COPS ANY IMMEDIATE HOPE FOR CRIMERAVAGED INNER CITIES RESTS WITH MORE POLICE THE CRIME BILL WINDING THROUGH THE SENATE MAKES MAJOR STRIDES FIRST WITH AN ADDITION OF 100000 COPS FOR COMMUNITY POLICING THE BILL ALSO WOULD LAUNCH THE POLICE CORPS OFFERING KIDS GUARANTEED FEDERAL LOANS FOR A COLLEGE EDUCATION IN RETURN FOR A FOURYEAR STINT ON A LOCAL POLICE FORCE EVENTUALLY THERE COULD BE AS MANY AS 80000 MEN AND WOMEN IN THE POLICE CORPS THIS IS THE BRAINCHILD OF LONGTIME POLITICAL ACTIVIST ADAM WALINSKY AND ITS LIKELY ENACTMENT NEXT YEAR IS A TESTAMENT TO THE TENACITY AND COMMITMENT OF THIS FORMER AIDE TO ROBERT F KENNEDY THIS COMPLEMENTS NOT CONFLICTS WITH GUN CONTROL IF THAT'S A LESSON SOME LIBERALS STILL NEED TO LEARN SOME CONSERVATIVES PARADING AS ANTICRIME CHAMPIONS SHOULD STOP BEING WHOLLY OWNED SUBSIDIARIES OF THE GUN LOBBY ON THE RELATIVELY MILD BRADY BILL THE NRA SYCOPHANTS ARGUED THAT ALMOST ALL CRIMINALS GET GUNS ILLEGALLY THAT WAITING PERIODS HAVEN'T WORKED IN STATES THAT HAVE TRIED THEM THAT HANDGUNS REALLY AREN'T A MAJOR FACTOR IN VIOLENT CRIMES AND THAT IF THE BILL HAD BEEN LAW IT WOULDN'T HAVE STOPPED JOHN HINCKLEY MR BRADY'S ASSAILANT FROM PURCHASING HIS HANDGUN ALL THESE CLAIMS ARE FALSE STATE WAITING PERIODS ARE WORKING IN CALIFORNIA 11622 HANDGUN PURCHASES HAVE BEEN STOPPED IN THE PAST TWO YEARS WELL OVER HALF OF THOSE BY CONVICTED CRIMINALS IN TINY DELAWARE 1271 ATTEMPTED HANDGUN PURCHASES WERE NIXED THE JUSTICE DEPARTMENT REPORTS THAT MORE THAN ONEQUARTER OF FEDERAL PRISONERS PURCHASED THEIR HANDGUNS FROM A GUN DEALER OVER THE PAST FIVE YEARS HANDGUNRELATED MURDERS IN THE US HAVE SOARED 59 WHILE NONHANDGUNRELATED MURDERS ACTUALLY HAVE DECLINED BY ALMOST 10 IN THE SAME PERIOD MOREOVER THE BRADY BILL MIGHT HAVE STOPPED JOHN HINCKLEY'S HANDGUN PURCHASE SINCE HE GAVE A PHONY ADDRESS THE GUN LOBBY'S CONTENTION THAT BANNING SOME DOMESTICALLY MADE ASSAULT RIFLES THREATENS LEGITIMATE HUNTERS MAY BE EVEN MORE OUTRAGEOUS WHEN WAS THE LAST TIME SOMEONE BAGGED BAMBI WITH AN UZI THERE ARE LOTS OF SINCERE HUNTERS MANY OF WHOM BELONG TO THE NRA BUT ANY QUESTION ABOUT THE CHARACTER AND SANENESS OF ITS LEADERS CAN BE RESOLVED BY READING ERIK LARSON'S PENETRATING PROFILE LAST MONTH OF NEAL KNOX THE MAN WHO CONTROLS THE POWERFUL NRA US GUNCONTROL MEASURES MR KNOX BELIEVES WERE MODELED AFTER 1938 NAZI ACTIONS HIS SOLUTION FOR SOMALIA GIVE SOMALI MOTHERS AK47S THE NRA MAY HAVE ONE THING RIGHT HOWEVER IT CHARGES THAT EFFORTS LIKE THE BRADY BILL WHICH WILL CURB VIOLENCE ONLY AT THE MARGINS REPRESENT THE CAMEL'S NOSE IN THE TENT LET'S HOPE SO MORE FARREACHING MEASURES TOUGHER ON BOTH GETTING GUNS AND GUN DEALERS ARE IN THE OFFING THE MOST INTRIGUING NEW IDEA IS SEN DANIEL PATRICK MOYNIHAN'S PROPOSAL TO SLAP A MASSIVE TAX ON HANDGUN AMMUNITION THAT WOULD HAVE A MINIMAL EFFECT ON THE INNOCENT CITIZEN WHO KEEPS A GUN TO PROTECT HOME AND FAMILY BUT COULD PRICE SOME CRIMINAL JOYSEEKERS OUT OF BUSINESS IT'S WORTH A TRY EVENTUALLY THERE SHOULD BE A NATIONAL DEBATE OVER SEN JOHN CHAFEE'S RADICAL PROPOSAL TO BAN MOST PRIVATE OWNERSHIP OF GUNS IT MAY BE A WHILE BEFORE THE COUNTRY IS READY FOR THAT SENSIBLE NOTION BUT POLITICIANS SHOULD KEEP ON THE ATTACK SUPPORT IS GROWING FROM POLICE OFFICERS EVERYWHERE 70 OF COPS KILLED IN THE LINE OF DUTY ARE SHOT WITH HANDGUNS AND AVERAGE CITIZENS ARE MORE AROUSED THAN EVER ABOUT GUNS IT'S NONSENSE TO SUGGEST THAT GUN CONTROL IS A PANACEA TO THE NATION'S CRIME PROBLEM IT'S EVEN MORE NONSENSICAL HOWEVER TO THINK THAT EPIDEMIC CAN BE ADDRESSED WITHOUT DEALING WITH THE PROLIFERATION OF GUNS SEE RELATED LETTERS LETTERS TO THE EDITOR WE MUST HAVE RIGHT OF SELFDEFENSE WSJ DEC 13 1993 9311180107 YY93 MM12 9312130047 931112 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY ELLEN JOAN POLLOCK CAN A COMPANY GET AS HIGH A LEVEL OF SERVICE FROM A SMALL LAW FIRM AS FROM A BIG ONE A FEW ACCOMPLISHED LAWYERS WITH BIGFIRM RESUMES ARE BETTING THAT THEIR CLIENTS WILL BE HAPPIER IN A MORE INTIMATE LEGAL SETTING THEY ARE LEAVING CUSHY JOBS BEHIND AND STRIKING OUT ON THEIR OWN IT IS AN ESPECIALLY RISKY WAGER THESE DAYS THE RECESSION STIFLED THE AMBITION OF MANY WOULDBE LEGAL ENTREPRENEURS BUT THIS NEW BREED OF COUNSELORS IS SEEKING TO TURN THE BAD ECONOMIC TIMES INTO AN ADVANTAGE THEY ARE PROMISING TO PROVIDE THE SAME QUALITY WORK THEY ONCE PERFORMED AT BIG FIRMSBUT AT BARGAIN PRICES SO FAR THE BAIT IS ATTRACTING SOME BIG FISH AS CLIENTS LITIGATOR FRED BARTLIT AND HIS FELLOW DEFECTORS FROM CHICAGOBASED KIRKLAND & ELLIS LURED NL INDUSTRIES UNITED TECHNOLOGIES AND ROYAL DUTCH/SHELL GROUP'S SHELL OIL CO AWAY FROM THEIR OLD FIRM AND JOHNSON & JOHNSON RECENTLY TOOK MOST OF ITS NORTHERN CALIFORNIA PRODUCTLIABILITY WORK AWAY FROM A BIG SAN FRANCISCO FIRM BRONSON BRONSON & MCKINNON AND SHIPPED IT TO A NEW OPERATION FOUNDED BY A FORMER BRONSON PARTNER THEY'RE HUNGRIER AND MORE EAGER TO PLEASE EXPLAINS ROBERT E CHRISTENSEN JOHNSON & JOHNSON'S ASSOCIATE GENERAL COUNSEL THEY'RE ALSO MORE WILLING TO PUT ASIDE OLD WAYS OF DOING THINGS AND LOOK AT NEW CREATIVE WAYS OF STRUCTURING RELATIONSHIPS HE SAYS THAT IS WHAT SETS THE UPSTARTS APART FROM THE FOUNDERS OF BIGLEAGUE FIRMS A CENTURY AGO OR EVEN A DECADE AGO THEN THE IDEA WAS TO OFFER PREMIUM WORK AT PREMIUM PRICES NOW THE GOAL IS TO SHED THE INEFFICIENCIES OF BIGFIRM PRACTICE THE PAPER SHUFFLING THE ENDLESS RESEARCH THAT DRIVE CLIENTS TO DISTRACTION AND PUSH BUDGETS OUT OF SIGHT THESE DAYS MARC E KASOWITZ 41 YEARS OLD SITS IN THE KIND OF OFFICE USUALLY RESERVED FOR A LAW FIRM'S ELDER STATESMAN MR KASOWITZ HAS BEEN IN BUSINESS ONLY SINCE JULY BUT ALREADY HE AND HIS BAND OF 27 LAWYERS ARE PLUGGING AWAY ON LITIGATION THAT IS EXPECTED TO GENERATE AS MUCH AS 20 MILLION IN FEES MR KASOWITZ REPRESENTS BIG CLIENTS HOECHST CELANESE CORP AND BRISTOLMYERS SQUIBB CO ARE AMONG THEM AND WORKS IN THE SAME PRICEY MANHATTAN BUILDING AS DEBEVOISE & PLIMPTON A TOP FIRM THAT GOT ITS START LONG BEFORE MOST OF MR KASOWITZ'S CREW WERE BORN BUT THE ECONOMIC UNDERPINNINGS OF MR KASOWITZ'S FIRM ARE FAR FROM TRADITIONAL AND THAT IS WHAT HE HOPES CLIENTS WILL NOTICE WHEN THEY OPEN THEIR BILLS BIG FIRMS LIKE MAYER BROWN & PLATT MR KASOWITZ'S FORMER HOME HIRE FLOTILLAS OF ASSOCIATES WHO MUST BE KEPT BUSY BILLING HOURS SO THAT THEIR SALARIES CAN BE PAID AND PROFITS GENERATED FOR THE PARTNERSHIP KASOWITZ HOFF BENSON & TORRES HAS A CORE GROUP OF LAWYERS INCLUDING FOUR PARTNERS THEN MR KASOWITZ HIRES AS NEEDED AN ADDITIONAL 20 TO 30 LAWYERS FROM AGENCIES THAT SPECIALIZE IN PLACING TOPNOTCH LAWYERS ON A TEMPORARY OR PARTTIME BASIS THAT MEANS MR KASOWITZ DOESN'T HAVE TO KEEP CHURNING CLIENT FILES TO KEEP LAWYERS BUSY BECAUSE HE HIRES SO MANY TEMPORARY LAWYERS MOST OF WHOM HAVE LOTS OF EXPERIENCE HE GETS A BREAK ON THE PRICE HE USUALLY BILLS CLIENTS BETWEEN 80 AND 115 AN HOUR FOR THEIR WORK A GOOD DEAL LESS THAN MANY BIG NEW YORK FIRMS CHARGE FOR LAWYERS JUST A YEAR OUT OF SCHOOL MR KASOWITZ HAS BUILT OTHER SAVINGS INTO HIS FORMULA AS WELL HIS LITIGATORS WHO WORK OUT OF OFFICES IN HOUSTON AND CHICAGO AS WELL AS NEW YORK RELY HEAVILY ON COMPUTERS TO SORT DOCUMENTS NECESSARY TO PREPARE FOR PRODUCTLIABILITY CASES NATIONWIDE HE SAYS THAT TWO STAFFERS TYPICALLY CAN COLLECT AND ORGANIZE DOCUMENTS FOR A PRETRIAL INTERVIEW IN JUST SIX OR SEVEN HOURS A TASK THAT WOULD TAKE DAYS OR WEEKS WITHOUT THE COMPUTERS NOT SURPRISINGLY SOME BIGFIRM LAWYERS QUESTION THE CLAIMS OF THE SMALLFIRM LAWYERS JAMES C KRIEG MANAGING PARTNER OF BRONSON WARNS THAT CLIENTS MAY NOT END UP SAVING MONEY BY PATRONIZING THE NEWER SMALLER SHOPS IN ADDITION HE SAYS I DON'T THINK THAT LAWYERS IN SMALL FIRMS ARE MORE RESPONSIVE THAN LAWYERS IN LARGER FIRMS THAT ARE RUN RIGHT THAT IS PART OF THE MARKETING MYTHOLOGY THAT SOME OF THESE PEOPLE ARE USING HE ADDS NONETHELESS LAWYERS ACROSS THE COUNTRY ARE TAKING HEED OF THEIR CLIENTS' APPARENT FRUSTRATION WITH SOME LARGER FIRMS ARMED WITH A BLATANT SALES PITCH TO COSTCONSCIOUS COMPANIES TWO YOUNG LITIGATORS LEFT ONE OF BUFFALO NY'S BIGGEST FIRMS THIS PAST SUMMER AND SET UP THEIR OWN SHOP THE MOTTO SMARTER FASTER TOUGHER ADORNS THE COVER OF THE FIRM'S BROCHURE WHICH ALSO TOUTS THE FIRM'S ECONOMIC FORESIGHT I'VE ALWAYS FELT LIKE AN ENTREPRENEUR SAYS CATHERINE HABERMEHL 35 ONE OF ONLY TWO LAWYERS AT ALTREUTER & HABERMEHL I ALWAYS WANTED TO SEE IF I COULD MAKE THE PRACTICE OF LAW RUN EFFICIENTLY AND BE MY OWN BOSS SHE SAYS IT JUST SEEMED LIKE IT WAS A GOOD TIME TO DO IT WILLIAM C ALTREUTER SAYS THE NEW FIRM'S BILLS WILL RUN 10 TO 20 LOWER FOR THE SAME WORK THAT HE AND MS HABERMEHL WERE DOING AT SAPERSTON & DAY THEIR OLD FIRM IN PART THAT IS BECAUSE ALTREUTER & HABERMEHL IS SURVIVING ON THE CHEAP IT HIRES TEMPORARY PARALEGALS AND HAS RENTED SPACE FROM A COMPANY THAT LEASES OFFICE SUITES OVERHEAD MR ALTREUTER PROJECTS WILL BE ONLY 15 OF THE FIRM'S REVENUE SUBSTANTIALLY LOWER THAN THE 60 OR SO MOST BUFFALO FIRMS SPEND ON SUCH COSTS THESE SMALL FIRMS HOWEVER CLEARLY ALSO HAVE SOMETHING TO OFFER THAT IS LESS TANGIBLE THAN REDUCED BILLING RATES YOU JUST FEEL A CLOSE IDENTITY AND AFFINITY WITH YOUR CLIENTS SAYS CHARLES PREUSS OF PREUSS WALKER & SHANAGHER THE FIRM THAT LURED AWAY JOHNSON & JOHNSON'S WORK FROM THE BRONSON FIRM WE REALLY UNDERSTAND WHAT THE CLIENT NEEDS AND WE GO AFTER THAT HE SAYS IF THAT MEANS SETTLING A CASE FIVE MINUTES AFTER YOU GET IT YOU DO IT YOU LOSE THE INCOME FROM THAT CASE BUT YOU GET THE NEXT CASE THE '90S ARE A LOT DIFFERENT SEE RELATED LETTER LETTERS TO THE EDITOR WARNING TO BIG FISH EXAMINE BAIT CLOSELY WSJ DEC 13 1993 9311120141 YY93 MM12 9312130045 931129 REVIEW & OUTLOOK EDITORIAL ANTITRUST IN REVERSE THE ACTIVISM OF THE CLINTON FOLKS SOMETIMES SEEMS AKIN TO THE TYPE PRACTICED BY HEADLESS CHICKENS WE GOT A TASTE OF THE NEW FASHION IN US ANTITRUST POLICY WITH THE JUSTICE DEPARTMENT'S LAWSUIT THAT EFFECTIVELY SCUTTLED THE SALE OF GENERAL MOTOR'S ALLISON DIVISION TO A GERMAN AUTOPARTS MAKER ONE OF THE EARLIEST ACTS OF THE REAGAN ADMINISTRATION WAS TO BRING CHICAGO SCHOOL ECONOMICS THE ONE WINNING ALL THE NOBELS INTO THE INTELLECTUAL BACKWATER OF THE ANTITRUST DIVISION THE CHICAGOANS ASSUMED THAT MARKETS ARE USUALLY THE BEST JUDGE OF HOW INDUSTRIES SHOULD BE STRUCTURED STEVE SUNSHINE THE NEW SPECIAL COUNSEL FOR MERGER ENFORCEMENT TELLS US THAT CLINTON ANTITRUST POLICY WILL BE REALLY FOCUSED ON COMPETITION IN TECHNOLOGY THAT'S FINE BUT THE PRESUMPTION IN FAVOR OF MARKET SOLUTIONS SHOULD STILL APPLY AND THE ALLISON CASE ISN'T ENCOURAGING WORD WAS OUT MONTHS AGO THAT JUSTICE STAFF LAWYERS WERE IN THE MOOD FOR SOME MUSCLEFLEXING AND WERE JUST WAITING FOR A CLINTON APPOINTEE TO SIGN OFF IN THE COMPLAINT FILED WITH A DELAWARE COURT JUSTICE ALLEGES THAT A MERGER OF ALLISON AND ZF FRIEDRICHSHAFEN WOULD CREATE A VIRTUAL MONOPOLY OVER THE BUSINESS OF HEAVYDUTY AUTOMATIC TRANSMISSIONS THESE ARE USED MOSTLY IN GARBAGE TRUCKS AND CITY BUSES WHERE THERE'S A LOT OF STOPANDGO AND PRESUMABLY THE ULTIMATE VICTIMS WOULD BE PUBLIC TRANSIT RIDERS AND WE GUESS GARBAGE JUSTICE TROTS OUT ASTRONOMICAL VALUES UNDER WHAT'S KNOWN AS THE HERFINDAHL INDEX A MEASURE OF INDUSTRY CONCENTRATION BUT THERE'S SOMETHING MORE THAN A LITTLE LAWYERLY ABOUT THE WAY JUSTICE LOADS THE DICE BY DEFINING THE MARKET AS ONLY ALLISONLIKE PRODUCTS YOU WOULDN'T KNOW FROM READING THE COMPLAINT FOR INSTANCE THAT HALF THE GARBAGE TRUCKS SOLD ARE MANUALSHIFT AND BY CONFLATING THE MARKETS FOR BUS AND GARBAGE TRUCK TRANSMISSIONS WHICH AREN'T REMOTELY INTERCHANGEABLE JUSTICE MANAGES TO MAKE AN IMPORTANT THIRD PLAYER GERMANY'S VOITH LOOK LIKE A COMPETITIVE IRRELEVANCY EVEN THOUGH ITS BUS GEARBOXES ACCOUNT FOR 25 OF THE US MARKET THE POINT HERE IS THAT SEMANTIC GAMES GO A LONG WAY TOWARD MAKING THE MARKET LOOK UNCOMPETITIVE AND THE COMPLAINT POOHPOOHS ANY HOPE OF NEW COMPETITORS COMING ALONG BUT THE REALITY IS THAT VOLVO MERCEDES JAPAN'S DENZO AND DETROIT'S BIG THREE ALL COULD POTENTIALLY CONTEST BITS OF ALLISON'S MARKET MEANWHILE THE NEXT TECHNOLOGICAL WAVE MAY BELONG TO COMPUTERIZED MANUALAUTOMATIC HYBRIDS BEING DEVELOPED BY EATONFULLER AND OTHERS NOW THAT GM HAS BOWED TO THE CLINTONITES AND PULLED ALLISON OFF THE BLOCK THE SANGUINE MR SUNSHINE PREDICTS THE GERMANS WILL GO HOME AND LAUNCH AN EXPENSIVE EFFORT TO LEAPFROG ALLISON'S TECHNOLOGY THIS IGNORES THE FACT THAT ZF HAS ALREADY EXPENSIVELY FLOPPED IN THE US MARKET CAPTURING LESS THAN 5 SINCE 1985 AND THE DIVERSIFIED GIANT MAY WELL TURN ITS ATTENTION TO OTHER MATTERS THE OTHER DANGER IS THAT ALLISON WILL LANGUISH IN A CORNER OF THE GM EMPIRE WHILE GM'S HARRIED MANAGEMENT IS PREOCCUPIED WITH STAUNCHING LOSSES IN THE AUTO BUSINESS ALLISON WILL HAVE MISSED OUT ON USING ZF'S MARKETING CLOUT TO EXPAND SALES IN EUROPE WHERE MOST TRUCK AND BUS DRIVERS STILL LINGER IN THE MANUAL STONE AGE WE WISH THE CLINTONITES LUCK IN DEVELOPING AN ANTITRUST PHILOSOPHY BUT THIS WAS A CASE WHERE THE FACTS SUGGEST THE MARKET SHOULD HAVE BEEN LEFT TO SHIFT FOR ITSELF SEE RELATED LETTER LETTERS TO THE EDITOR WHEN THERE'S A REASON TO INTERVENE WE MOVE WSJ DEC 13 1993 9311290026 YY93 MM12 9312100201 931210 WHO'S NEWS NEWS CORP NEWS CORP SYDNEY AUSTRALIA SAM CHISHOLM 54 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MEDIA COMPANY INCREASING THE BOARD'S SIZE TO 14 MEMBERS MR CHISHOLM IS CHIEF EXECUTIVE OFFICER OF BRITISH SKY BROADCASTING IN WHICH NEWS CORP HAS A 50 INVESTMENT 9312100200 931210 WHO'S NEWS PERINI CORP PERINI CORP FRAMINGHAM MASS NANCY HAWTHORNE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CONTINENTAL CABLEVISION INC WAS ELECTED TO THE BOARD OF THIS CONSTRUCTION COMPANY 9312100199 931210 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 23 BILLION CANADIAN DOLLARS US174 BILLION OF 575 BONDS DUE MARCH 1 1999 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9312100198 931210 POLITICS & POLICY WHITE HOUSE HOPES USSYRIA SUMMIT WILL REKINDLE MIDDLE EAST PEACE TALKS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL DAMASCUS SYRIA THE CLINTON ADMINISTRATION IS BANKING ON A USSYRIAN SUMMIT AND SOME NEW DIPLOMATIC STEPS IN WASHINGTON TO REINVIGORATE FLAGGING MIDDLE EAST PEACE TALKS SECRETARY OF STATE WARREN CHRISTOPHER ANNOUNCED HERE THAT PRESIDENT CLINTON AND SYRIAN PRESIDENT HAFEZ AL ASSAD WILL MEET IN MIDJANUARY IN GENEVA MR CHRISTOPHER ALSO SAID FORMAL ARABISRAELI PEACE TALKS IN WASHINGTON WILL RESUME AROUND THE END OF NEXT MONTH TO PAVE THE WAY FOR THOSE TALKS THE US WILL HOST INFORMAL DISCUSSIONS EARLIER IN THE MONTH INVOLVING THE HEADS OF THE DELEGATIONS IN AN EFFORT TO INCREASE THE LIKELIHOOD THAT THEY MAKE PROGRESS MR CHRISTOPHER SAID MR CHRISTOPHER'S ANNOUNCEMENTS AT A NEWS CONFERENCE HERE ALLOWED HIM TO WIND DOWN A WEEKLONG TRIP THROUGH THE REGION ON AN UPBEAT NOTE DESPITE ESCALATING ISRAELIPALESTINIAN VIOLENCE MR CHRISTOPHER DELIBERATELY LOWERED EXPECTATIONS AT THE OUTSET BUT HE HAD HOPED TO ANNOUNCE THAT THE WASHINGTON PEACE TALKS WHICH HAVE BEEN RECESSED SINCE SEPTEMBER WOULD START AGAIN MR CLINTON'S DECISION TO MEET WITH MR ASSAD GIVES THE SYRIAN LEADER THE PRESTIGE OF A SUMMIT WITH THE US PRESIDENT IN EXCHANGE FOR ASYET UNREALIZED HOPES FOR A BREAKTHROUGH AT THE NEGOTIATING TABLE THE MEETING UNDERSCORES SYRIA'S KEY ROLE IN ACHIEVING COMPREHENSIVE REGIONAL PEACE DESPITE SETBACKS ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION APPEAR TO BE MOVING TOWARD THE FIRST PHASE OF THE SURPRISE AGREEMENT THEY SIGNED IN SEPTEMBER UNDER WHICH ISRAEL WILL WITHDRAW FROM GAZA AND THE WEST BANK TOWN OF JERICHO BUT ISRAELISYRIAN TALKS ARE BOGGED DOWN JORDAN WHICH HAS AGREED TO A NEGOTIATING AGENDA WITH ISRAEL ISN'T LIKELY TO TAKE ANY FURTHER STEPS UNTIL ITS ARAB BRETHREN CATCH UP AND LEBANON WON'T MAKE ANY MOVES WITHOUT A GREEN LIGHT FROM SYRIA WHICH HEAVILY INFLUENCES THAT NATION US OFFICIALS INSISTED THAT THE CLINTONASSAD MEETING WASN'T A REWARD TO SYRIA FOR AGREEING TO RESUME PEACE TALKS INDEED AT A JOINT NEWS CONFERENCE SYRIAN FOREIGN MINISTER FAROUK AL SHARA MAINTAINED A HARD LINE ON SYRIA'S DEMANDS HE SAID SYRIA TOTALLY REJECTED ANYTHING LESS THAN COMPLETE ISRAELI WITHDRAWAL FROM THE OCCUPIED GOLAN HEIGHTS SYRIA IS WAITING FOR ISRAELI AGREEMENT TO GIVE UP THE GOLAN BEFORE IT DESCRIBES WHAT KIND OF PEACE IT WILL MAKE ISRAEL WANTS THE STATEMENT ON PEACE BEFORE IT WILL TALK ABOUT WITHDRAWAL ONE US OFFICIAL SAID MR CLINTON INVITED MR ASSAD TO THE MEETING BECAUSE THE ADMINISTRATION IS CONVINCED THAT MR ASSAD HAS MADE THE STRATEGIC CHOICE TO SEEK PEACE WITH ISRAEL THE OFFICIAL ADDED THAT THERE IS A RECOGNITION THAT SYRIA WILL HAVE TO MAKE SOME COMPROMISES ALONG THE WAY AND THE GENEVA MEETING IS SEEN AS A WAY TO BOLSTER MR ASSAD WE MADE A JUDGMENT THAT THIS IS THE TIME TO DO IT THE SENIOR US OFFICIAL SAID IT'S THE BEST WAY TO PROMOTE THE PEACE PROCESS MR CHRISTOPHER NOTED THAT MR CLINTON HAS MET WITH ALL THE OTHER MIDEAST LEADERS INVOLVED IN THE PROCESS AND THAT SUCH MEETINGS ARE IMPORTANT TO OUR ROLE AS FULL PARTNER AND ACTIVE INTERMEDIARY IN THE ARABISRAELI PEACE PROCESS US OFFICIALS ALSO SAID THEY DECIDED TO RECOMMEND A CLINTONASSAD MEETING BECAUSE OF TWO MOVES MR ASSAD MADE THIS WEEK THE SYRIAN LEADER IN A RARE GESTURE OF GOODWILL TO ISRAEL AGREED TO HELP INVESTIGATE THE FATE OF SEVEN ISRAELI SOLDIERS MISSING SINCE THE 1980S HE ALSO SAID HE WILL ISSUE EXIT VISAS TO SYRIA'S REMAINING 1200 OR SO JEWS BY THE END OF THIS MONTH MR ASSAD PROMISED LAST FEBRUARY TO PERMIT SYRIAN JEWS TO LEAVE AND SEVERAL THOUSAND DID IN AN ONAGAIN OFFAGAIN PROCESS BUT A US OFFICIAL SAID THIS IS THE FIRST TIME MR ASSAD AGREED TO A TIMETABLE THE US IN TURN PERMITTED KUWAIT TO SELL SYRIA THREE USMADE BOEING 727 JETLINERS SUCH SALES NORMALLY ARE BARRED TO SYRIA BECAUSE THE COUNTRY REMAINS ON A US LIST OF NATIONS THAT SUPPORT TERRORISM MR CHRISTOPHER SAID THE US HAS NO PLANS AT THE PRESENT TIME TO REMOVE SYRIA FROM THAT LIST 9312100197 931210 WHO'S NEWS FUGITIVE MARC RICH QUITS PASSES FIRM TO EMPLOYEES A WALL STREET JOURNAL ROUNDUP ZURICH MARC RICH THE FUGITIVE US COMMODITIES TRADER RESIGNED AS CHAIRMAN OF MARC RICH & CO AND PASSED CONTROL OF THE COMPANY TO EMPLOYEES THE SWISS COMPANY SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED RESTRUCTURING OF OWNERSHIP AND MANAGEMENT THAT GIVES 725 OF THE COMPANY'S CAPITAL TO MANAGEMENT AND A NUMBER OF KEY EMPLOYEES THE BALANCE OF 275 IS OWNED BY A HOLDING COMPANY BELIEVED TO BE CONTROLLED BY MR RICH THE DEAL'S FINANCIAL TERMS WEREN'T DISCLOSED THE COMPANY ALSO SAID AN AGREEMENT HAD BEEN REACHED UNDER WHICH MANAGEMENT AND KEY STAFF COULD BUY THE REMAINING 275 STAKE THE COMPANY SAID MR RICH RESIGNED AS CHAIRMAN AT A GENERAL MEETING ON MONDAY AND WAS SUCCEEDED BY WILLY R STROTHOTTE WHO BECAME CHIEF EXECUTIVE OFFICER EARLIER THIS YEAR MR RICH BUILT HIS COMPANY INTO ONE OF THE MOST POWERFUL COMMODITIES TRADERS IN THE WORLD AFTER FOUNDING IT IN 1974 WITH FIVE COLLEAGUES MR RICH HAS BEEN A FUGITIVE SINCE 1983 WHEN HE WAS ACCUSED IN THE US OF EVADING TAXES AND FLED TO SWITZERLAND 9312100196 931210 WHO'S NEWS IMCERA GROUP INC IMCERA GROUP INC NORTHBROOK ILL CLAUDINE B MALONE PRESIDENT OF FINANCIAL & MANAGEMENT CONSULTING OF MCLEAN VA WAS NAMED A DIRECTOR OF THIS PRODUCER OF SPECIALTY CHEMICALS AND HEALTHCARE PRODUCTS FOR HUMANS AND ANIMALS THERE ARE NOW 12 BOARD MEMBERS 9312100194 931210 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED DEC 3 ACCOUNTED FOR 105 OR AN AVERAGE 29 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 139 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 19 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 284 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 523 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 379 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 98 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS DAIWA SECURITIES AND COOPER NEFF EXECUTED ALL OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY BEAR STEARNS AND LEHMAN BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9312100192 931210 WHO'S NEWS CSX CORP CSX CORP RICHMOND VA FRANK S ROYAL A 54YEAROLD RICHMOND PHYSICIAN AND HEALTHCARE EXECUTIVE WAS ELECTED A DIRECTOR OF THIS TRANSPORTATION COMPANY EXPANDING THE BOARD TO 14 MEMBERS 9312100191 931210 ITT CORP UNIT TO REDEEM DEBT NEW YORK ITT CORP SAID ITS ITT FINANCIAL CORP UNIT WILL REDEEM ITS 100 MILLION OF 99 SENIOR DEBENTURES DUE JAN 15 1999 AT 100 OF PRINCIPAL AMOUNT ON JAN 15 1994 THE DEBENTURES WERE ISSUED IN 1989 ITT CORP ALSO HAS INTERESTS IN HOTELS INSURANCE AUTOMOTIVE EQUIPMENT AND ELECTRONICS 9312100190 931210 WHO'S NEWS TELESCAN INC TELESCAN INC HOUSTON RICHARD K CARLIN WAS NAMED TO THE NEWLY CREATED POSITION OF VICE CHAIRMAN OF THIS OPERATOR OF ONLINE INFORMATION NETWORKS DR CARLIN 38 YEARS OLD WILL RETAIN HIS POST AS SENIOR VICE PRESIDENT OF COMPUTER OPERATIONS 9312100189 931210 CHINA TELEVISION PLANS TO LAUNCH SATELLITETV NEWS BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ANOTHER MEDIA COMPANY IN HONG KONG PLANS TO JOIN THE GLOBAL TV NEWS WARS CHINA TELEVISION LTD INTENDS TO LAUNCH A 24HOUR MANDARINLANGUAGE SATELLITE TV NEWS AND INFORMATION SERVICE DURING THE THIRD QUARTER OF NEXT YEAR ACCORDING TO KELLY CHENG MANAGING DIRECTOR OF CHINA TELEVISION AND CHAIRMAN AND MANAGING DIRECTOR OF AIM MEDIA LTD CHINA TELEVISION IS A UNIT OF AIM MEDIA A SUBSIDIARY OF CIM CO WHICH IN TURN IS THE CONTROLLING SHAREHOLDER OF MING PAO A LEADING HONG KONG NEWSPAPER HONG KONG'S DOMINANT BROADCASTER TELEVISION BROADCASTS LTD LAUNCHED ITS OWN SATELLITETV SERVICE EARLIER THIS YEAR INTERNATIONAL BROADCASTERS INCLUDING NEWS CORP AND TURNER BROADCASTING SYSTEM INC HAVE IN THE LAST YEAR ANNOUNCED PLANS TO EXPAND DISTRIBUTION OF THEIR NEWS SERVICES WITH A FOCUS ON ASIA ACCORDING TO MR CHENG CHINA TELEVISION ALSO PLANS TO OFFER AT LEAST ONE OTHER CHANNEL WITHIN SIX MONTHS OF THE LAUNCH OF THE NEWS AND INFORMATION CHANNEL THAT WOULD INCLUDE EDUCATIONAL PROGRAMMING FOR CHILDREN AND FAMILIES THE COMPANY IS ALSO CONSIDERING A DOCUMENTARY CHANNEL HE ADDED MR CHENG SAID THE COMPANY PLANS TO DELIVER ITS CHANNELS VIA SATELLITE AND IS NEGOTIATING WITH SATELLITE SERVICES WHICH HE DECLINED TO IDENTIFY WHILE TARGET MARKETS FOR THE SATELLITETV SERVICE WOULD BE SOUTHEAST ASIA HONG KONG SINGAPORE AND TAIWAN THEY WOULD ALSO INCLUDE MARKETS IN NORTH AMERICA EUROPE AND AUSTRALIA WHERE LARGE CHINESE COMMUNITIES CONVERGE MR CHENG SAID OF COURSE WE WOULD MAKE AN ATTEMPT TO REACH CHINA BUT CHINA IS JUST ONE OF THE MARKETS WE HOPE TO COVER WE HOPE WE DON'T ENCOUNTER ANY POLITICAL PROBLEMS HE ADDED WEI XUEXING SECRETARYGENERAL OF THE CHINESE INSTITUTE OF ELECTRONICS AND VICE PRESIDENT AND SECRETARYGENERAL OF THE CHINA USERS ASSOCIATION OF SATELLITE COMMUNICATION BROADCASTING AND TV SAID IN AN INTERVIEW LAST WEEK THAT THE CHINESE GOVERNMENT PERMITS HOTELS AND EMBASSIES IN CHINA TO RECEIVE UNCENSORED INTERNATIONAL TV BROADCASTS BUT RESERVES THE RIGHT TO SCREEN THE CONTENT OF INTERNATIONAL PROGRAMMING BEAMED TO ORDINARY CITIZENS 9312100188 931210 DIVIDEND NEWS ARCH PETROLEUM INC ARCH PETROLEUM INC FORT WORTH TEXAS SAID IT DECLARED A 2FOR1 STOCK SPLIT OF COMMON SHARES PAYABLE JAN 18 TO STOCK OF RECORD DEC 31 THE OIL AND GAS CONCERN SAID IT HAS ABOUT 85 MILLION COMMON SHARES OUTSTANDING 9312100187 931210 MARKETING & MEDIA VIDEOGAME MAKERS PRESS ESCAPE BUTTON MARKED FREE SPEECH SEGA LEADS DRIVE FOR INDUSTRY NOT CONGRESS TO RATE SEX AND VIOLENCE IN PRODUCTS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL A CONGRESSIONAL COMMITTEE SOUNDED A SKEPTICAL NOTE OVER THE VIDEOGAME INDUSTRY'S PROPOSAL FOR SELFPOLICING SEX AND VIOLENCE IN ITS PRODUCTS CONGRESS HAS BEEN INCREASINGLY TROUBLED BY THE PROLIFERATION OF GRAPHIC GAMES THAT DEPICT SAVAGE MURDERS AND THE STALKING OF TEENAGE GIRLS AMONG OTHER THINGS AN INDUSTRY GROUP LED BY SEGA ENTERPRISES LTD'S SEGA OF AMERICA INC UNIT HOPING TO WARD OFF A CONGRESSIONALLY IMPOSED RATINGS SYSTEM YESTERDAY UNVEILED A PLAN FOR THE INDUSTRY TO DEVELOP ITS OWN SYSTEM FOR RATING ITS PRODUCTS THE PLAN WAS SHORT ON DETAILS HOWEVER AND THE CONGRESSIONAL PANEL DIDN'T SEEM IMPRESSED AT A HEARING YESTERDAY SEN JOSEPH LIEBERMAN D CONN CHAIRMAN OF THE SUBCOMMITTEE ON JUVENILE JUSTICE SAID HE WILL PUSH AHEAD WITH PLANS TO INTRODUCE LEGISLATION MANDATING RATINGS WHILE HE COMMENDED THE INDUSTRY FOR AT LEAST RECOGNIZING THAT SOME SORT OF RATINGS SYSTEM IS NEEDED HE CAUTIONED THAT ANY RATING SYSTEM MUST NOT BE A FIG LEAF FOR THE INDUSTRY TO HIDE BEHIND IT WOULD BE FAR BETTER IF GAME MAKERS SIMPLY KEPT THE GORY VIOLENCE AND SEX OUT OF THEIR GAMES HE SAID THE INDUSTRY GROUP SAID IT AGREES THAT A RATINGS SYSTEM IS NEEDED BUT SEEMED TO REJECT ANY SUGGESTION THAT IT SHOULD CURTAIL VIOLENCE AND SEXUAL CONTENT IN A NEWS RELEASE THE GROUP STRESSED THE FREE SPEECH RIGHTS OF SOFTWARE MAKERS AND BILL WHITE A SEGA VICE PRESIDENT SAID THE INDUSTRY'S OBJECTIVE IS TO CREATE A SYSTEM THAT WILL HELP EDUCATE PARENTS AND CONSUMERS FOR AN INTERACTIVE FUTURE CAPABLE OF EMBRACING THE BROADEST VARIETY OF ENTERTAINMENT THE INDUSTRY ISN'T SPEAKING WITH ONE VOICE ON THE ISSUE NINTENDO CO'S NINTENDO OF AMERICA INC UNIT THE BIGGEST SELLER OF VIDEO GAMES DECLINED TO JOIN THE SEGALED INDUSTRY GROUP SAYING ITS PROPOSALS HAVEN'T GONE FAR ENOUGH NINTENDO DIDN'T ATTEND THE SEGA GROUP'S NEWS CONFERENCE YESTERDAY AT WHICH THE RATINGS PROPOSAL WAS ANNOUNCED 9312100186 931210 WHO'S NEWS CHILES OFFSHORE CORP CHILES OFFSHORE CORP HOUSTON CHARLES H DALLARA MANAGING DIRECTOR INSTITUTE OF INTERNATIONAL FINANCE WAS NAMED A DIRECTOR OF THIS ENERGY CONCERN MR DALLARA SUCCEEDS ALEX KRAFFT WHO RESIGNED FROM THE EIGHTMEMBER BOARD 9312100185 931210 TRAVEL RENTING CARS ABROAD CAN DRIVE YOU NUTS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL PARIS MARY BETH O'BRIEN'S ROMANCE WITH THIS CITY ENDED ABRUPTLY WHEN SHE WALKED INTO AN OFFICE OF BUDGET RENT A CAR CORP A BUDGET EMPLOYEE TOLD HER THAT SHE HAD TO BUY RENTAL INSURANCE MS O'BRIEN A DALLAS SALESWOMAN REPLIED THAT SHE HAD CONFIRMED WITH CITIBANK THAT HER VISA CARD PROVIDED COVERAGE ON INTERNATIONAL CAR RENTALS NO WAY BUDGET SAID SO MS O'BRIEN WAS FORCED TO PAY AN EXTRA 251 FOR HER ONEWEEK RENTAL BUDGET A UNIT OF BEECH HOLDINGS CORP EVENTUALLY REIMBURSED MS O'BRIEN BUT HER EXPERIENCE WAS A PAINFUL REMINDER THAT RENTING CARS IN EUROPE CAN BE FILLED WITH PITFALLS HIGH COSTS INCLUDING STEEP FUEL PRICES AND SALES TAXES ARE A BIG PROBLEM BUT US TRAVELERS CAN ALSO BE BLINDSIDED BY UNANTICIPATED CHARGES INCONSISTENT SERVICE HARDTOFIND LOCATIONS AND CULTURAL QUIRKS WHEN JOHN KALISHMAN WAS PLANNING A VACATION IN ITALY HE CALLED THE TOLLFREE NUMBER OF CHRYSLER CORP'S DOLLAR RENT A CAR SYSTEMS AND WAS GIVEN A SPECIAL ONEWEEK RATE FOR A CAR IN MILAN BUT WHEN HE GOT HIS BILL HE DISCOVERED THAT EURODOLLAR THE COMPANY'S EUROPEAN ARM CONSIDERS A WEEK TO BE FIVE DAYS SO HE HAD TO PAY FULL FARE FOR THE FINAL TWO DAYS SOMETHING AS OBVIOUS AS HOW MANY DAYS ARE IN A WEEK SHOULD BE WRITTEN UP IN THE CONTRACT BUT IT WASN'T SAYS MR KALISHMAN WHO ULTIMATELY GOT HIS MONEY BACK FOR THE EXTRA 48 HOURS FOR THE CARRENTAL COMPANIES OPERATING FARFLUNG LOCATIONS PRESENTS PROBLEMS AS WELL BUT IT CAN ALSO BE PROFITABLE US COMPANIES WHICH INVENTED THE INDUSTRY CROSSED THE ATLANTIC IN 1950 HERTZ CAME FIRST TO PARIS AND HAVE GROWN STEADILY EVERY MAJOR CARRENTAL COMPANY IS REPRESENTED IN WESTERN EUROPE ALAMO RENT A CAR IS THE MOST RECENT ARRIVAL AND THEY NOW HOLD 54 OF THE MARKET INITIALLY US CARRENTAL OPERATIONS IN EUROPE WERE INTENDED TO SERVE AMERICAN TOURISTS AND BUSINESS TRAVELERS BUT ALL THAT CHANGED IN THE 1970S AND '80S WHEN THE ECONOMIES IN EUROPEAN COUNTRIES GREW AND EUROPEANS BECAME MORE FAMILIAR WITH THE SERVICE NOW AMERICANS ACCOUNT FOR FEWER THAN ONE IN 10 CUSTOMERS OF US CARRENTAL COMPANIES IN EUROPE CARRENTAL EXECUTIVES SAY SERVICE QUALITY IN EUROPE AND ACROSS THE GLOBE IS UNIFORMLY HIGH AND NO DOUBT MANY TRAVELERS HAVE A SATISFACTORY EXPERIENCE INDEED A WALK THROUGH THE HERTZ AVIS AND BUDGET OFFICES IN PARIS REVEALS THE SAME COLOR SCHEMES FURNISHINGS AND CLEAN ENVIRONMENT TYPICALLY FOUND IN PEORIA AND SERVICE IS IMPROVING HERTZ CORP WHICH HAS 2400 RENTAL LOCATIONS IN EUROPE ANNOUNCED THIS MONTH THAT IT IS INTRODUCING INSTANTRETURN SERVICE AT 10 EUROPEAN AIRPORT LOCATIONS THE SERVICE IS STANDARD FOR CARRENTAL COMPANIES IN THE US I FIND NO DIFFERENCE IN PICKING UP A CAR IN MINNEAPOLIS OR IN PARIS SAYS JEAN HUBERT VICE PRESIDENT OF MARKETING FOR GENERAL MOTORS CORP'S NATIONAL CAR RENTAL SYSTEMS INC WHICH IS AFFILIATED IN EUROPE WITH EUROPCAR INTERRENT MR HUBERT SAYS RENTING CARS AT EUROPEAN AIRPORTS IS ACTUALLY EASIER THAN AT US AIRPORTS BECAUSE THE VEHICLES ARE ON SITE AS OPPOSED TO IN A DISTANT LOT BUT INDUSTRY OBSERVERS SAY CUSTOMER SERVICE FALLS SHORT OVERSEAS IN EUROPE THEY KNOW THIS IS THE ONLY TIME THEY MAY RENT TO YOU AND WHEN IT'S A ONETIME SHOT YOU DON'T HAVE AS MUCH OF A CUSTOMERSERVICE APPROACH SAYS LARRY SHARNAK VICE PRESIDENT OF CARDMEMBER SERVICES FOR AMERICAN EXPRESS CO WHICH MUST RECONCILE BILLING DISPUTES BETWEEN DRIVERS AND CAR COMPANIES CUSTOMERS SAY THE RENTAL COMPANIES' FAMILIARLOOKING LOCATIONS BELIE THE VERY DIFFERENT EXPERIENCE OF RENTING CARS ABROAD IT'S AN ILLUSION SAYS TRISH DICKSON AN ADVERTISING EXECUTIVE WHO LIVED IN MILAN FOR 3 1/2 YEARS AND NOW LIVES IN THAILAND YOU WALK IN AND SEE THE SAME UNIFORMS AND SMILING PEOPLE AND YOU THINK YOU'RE DEALING WITH HOME BOYS BUT YOU'RE NOT IN DOWNTOWN ROME MS DICKSON TRIED TO RETURN AN AVIS INC CAR BUT COULDN'T FIND THE LOCATION IT WAS TUCKED AWAY IN AN UNDERGROUND GARAGE I FINALLY CALLED THEM AND SAID COME HERE AND GET ME' SAYS MS DICKSON WHO IT TURNS OUT HAD PASSED THE GARAGE SIX TIMES KNOWING LOCAL CUSTOMS CAN HELP ONE DRIVER REPORTS THAT A GERMAN RENTAL AGENT REPRIMANDED HIM FOR LEAVING THE KEYS IN THE IGNITION WHEN HE DROPPED OFF A CAR IT'S CONSIDERED BAD MANNERS AND TRAVELERS IN ITALY HAVE BEEN LEFT HIGH AND DRY WHEN THEY TRIED TO RETURN A CAR AT LUNCHTIME WHEN YOU'RE IN VENICE SITTING AROUND FOR FOUR HOURS KIND OF WAXES YOUR DAY SAYS MARK PAPE AN INSURANCE EXECUTIVE IN WACO TEXAS WHO FOUND THAT THE BUDGET OFFICES IN VENICE WERE SHUT FROM 1130 AM TO 330 PM FORTUNATELY HE FOUND A BUDGET EMPLOYEE AT A NEARBY HERTZ OFFICE AND WAS ABLE TO RETURN HIS CAR CARRENTAL EXECUTIVES NOTE THAT TRAVELERS ARE RESPONSIBLE FOR LEARNING ABOUT DISPARITIES IN CULTURES AND COSTS DON'T BLAME HERTZ OR AVIS FOR EXAMPLE FOR 5AGALLON GASOLINE IN EUROPE OR FOR SALES TAXES THAT ARE 19 IN ITALY 175 IN BRITAIN AND 15 IN GERMANY IN THE US SALES TAXES FOR CAR RENTALS VARY BY STATE BUT THEY AVERAGE 6 THE CARRENTAL COMPANIES ALSO SAY THEY CAN'T BE HELD RESPONSIBLE FOR TINNY EUROPEAN CARS THAT LACK AUTOMATIC TRANSMISSIONS AND AIR CONDITIONING SIMILARLY TRAVELERS MUST BE AWARE THAT DRIVING FROM SAY FRANCE TO ITALY ISN'T LIKE CROSSING FROM MISSOURI TO KANSAS IN MOST CASES CARS FROM ONE COUNTRY CAN'T BE RENTED IN ANOTHER SO THE RENTAL AGENCY HAS TO RETRIEVE ITS IMMIGRANT AUTO THAT'S WHY HERTZ CHARGES 204 EXTRA WHEN A CAR FROM PARIS IS DROPPED OFF IN MADRID AMERICANS ARE NAIVE WHEN IT COMES TO TRAVELING ABROAD DESPITE THE FACT THAT WE'RE BIG TRAVELERS SAYS JOSEPH V VITTORIA AVIS'S CHIEF EXECUTIVE BUT THE RENTAL COMPANIES DON'T MAKE IT EASY LAST YEAR LISA PUCCI MOVED TO MILAN AND HAD NUMEROUS CARRENTAL CALAMITIES IN ONE CASE SHE RENTED A VEHICLE FROM EUROPCAR AT A SPECIAL FRIDAYSATURDAYSUNDAY WEEKEND RATE WHEN SHE RETURNED THE CAR ON MONDAY SHE WAS CHARGED FULL FARE FOR FOUR DAYS MS PUCCI'S CREDITCARD COMPANY HAS FILED A SUIT THE CUSTOMER IS NEVER RIGHT WITH THE CARRENTAL INDUSTRY MS PUCCI SAYS SO SHE TOOK THE ONLY RECOURSE SHE FELT SHE HAD LEFT SHE BOUGHT A RED HONDA RESERVE THE CAR THROUGH A US TRAVEL AGENT WHO CAN OFFER BETTER RATES THAN A EUROPEAN AGENT ASK FOR WRITTEN CONFIRMATION OF THE RESERVATION AND THE RATE IN THE LOCAL CURRENCY INQUIRE ABOUT ALL ADDED COSTS SUCH AS SALES TAXES AIRPORT SURCHARGES DROPOFF FEES AND MANDATORY THEFT COVERAGE ENSURE THAT EITHER YOUR CREDITCARD OR PERSONAL AUTO INSURANCE PROVIDES ACCIDENT AND LIABILITY COVERAGE ON FOREIGN CARS AT THE COUNTER DOUBLE CHECK THE RATE AND KEEP ALL DOCUMENTS EXPECT TO DRIVE A SMALL CAR WITH A STICK SHIFT AND NO AIR CONDITIONING YOU CAN REQUEST A MORE COMFORTABLE CAR BUT THERE ARE NO GUARANTEES CHECK IF YOU NEED AN INTERNATIONAL DRIVING LICENSE SOME EUROPEAN COUNTRIES REQUIRE IT ARRANGE TO PICK UP AND RETURN THE CAR DURING BUSINESS HOURS EUROPEAN LOCATIONS ARE MORE LIKELY TO SHUT DOWN AT NIGHT AND ON WEEKENDS THAN THEIR AMERICAN COUNTERPARTS IF THE CAR IS RETURNED WITHOUT DAMAGE CONFIRM THAT WITH A RENTAL AGENT AND GET YOUR FINAL BILL ONCE BACK HOME IT'S DIFFICULT TO DISPUTE CHARGES 9312100184 931210 FIAT'S IVECO TO SHIFT SOME PRODUCTION TO PLANT IN INDIA BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI IVECO AN ITALIAN TRUCK MAKER OWNED BY FIAT SPA IS SHIFTING SOME OF ITS PRODUCTION OF VEHICLES FOR EXPORT FROM EUROPE TO A JOINT VENTURE IN INDIA IVECO'S CHIEF EXECUTIVE OFFICER GIANCARLO BOSCHETTI SAID AT A NEWS CONFERENCE THIS WEEK THAT THE COMPANY INTENDS TO USE MADRASBASED ASHOK LEYLAND LTD IN WHICH IVECO AND THE HINDUJA GROUP TOGETHER OWN A 51 STAKE TO SERVE EXPORT MARKETS INCLUDING SOUTHEAST ASIA AND WEST ASIA INDIA IS ONE OF OUR TOP PRIORITIES MR BOSCHETTI SAID ADDING THAT IVECO AND HINDUJA INTEND TO MAKE ASHOK LEYLAND GLOBALLY COMPETITIVE BY BRINGING IN TECHNOLOGY AND CAPITAL IVECO ALSO PLANS TO USE THE JOINT VENTURE AND OTHER INDIAN SUPPLIERS TO PRODUCE PARTS FOR IVECO'S ITALIAN PRODUCTION LINES HE SAID PRODUCTION OF THE TRUCKS BEGAN RECENTLY OFFICIALS EXPECT TO PRODUCE 250 VEHICLES IN THE FIRST QUARTER OF 1994 AND 10000 TRUCKS ANNUALLY WITHIN TWO YEARS EXPORTS OF COMPLETE VEHICLES AND ASSEMBLY KITS ARE EXPECTED TO ACCOUNT FOR 15 OF THIS TOTAL MR BOSCHETTI SAID HE EXPECTS EXPORT VOLUME TO REACH SEVERAL THOUSAND TRUCKS A YEAR A SENIOR IVECO OFFICIAL SAID THAT THE ITALIAN COMPANY SELLS ABOUT 20000 TRUCKS A YEAR OUTSIDE EUROPE AND THAT ASHOK LEYLAND WILL TAKE OVER A SIGNIFICANT SHARE OF THAT BUSINESS IVECO ALREADY EXPORTS TRUCK CHASSIS FROM INDIA TO MARKETS AS DISTANT AS VIETNAM AND VENEZUELA HE SAID THE LONDONBASED HINDUJA GROUP WHICH BELONGS TO AN EXPATRIATE INDIAN FAMILY AND IVECO ACQUIRED A STAKE IN ASHOK LEYLAND FROM BRITISH LEYLAND IN 1986 ASHOK LEYLAND HAD A LOSS OF ABOUT 40 MILLION RUPEES 13 MILLION IN THE SIX MONTHS ENDED SEPT 30 BUT EXPECTS TO SHOW IMPROVEMENT IN THE REST OF THE YEAR ENDING MARCH 31 AS DEMAND REVIVES A SPOKESMAN SAID FOR FISCAL 1993 ASHOK LEYLAND HAD PRETAX PROFIT OF 455 MILLION RUPEES DOWN 83 FROM 2694 MILLION RUPEES A YEAR EARLIER 9312100183 931210 CHINA A SPECIAL REPORT BUSINESS PLAN A GREAT LEAP WHERE WHETHER YOU'RE UP IN THE JINJIANG TOWER OR DOWN IN JJ'S DISCO THE CULTURAL COLLISIONS ARE STARTLING BY JAMES P STERBA SHANGHAI CHINA YVES SAINT LAURENT'S OPIUM AND LIU HONGPING'S NIGHT SOIL ARE WAGING A WAR OF THE NOSES ON HUAIHAI ROAD MRS LIU LIVES ON A TINY LANE AROUND THE CORNER FROM A NEW CHROMESHEATHED SHOPPING PALACE THAT EXHALES A PERFUMED BREATH EACH TIME UNIFORMED ATTENDANTS OPEN ITS DOORS INSIDE PERKY SALESGIRLS PROFFER SPRITZES OF DESIGNER FRAGRANCES NAMED OPIUM POISON FAHRENHEIT AND SUBLIMESCENTS THE DISPLAY ADS SAY THAT HINT OF ROMANCE THE OLFACTORY OFFERINGS OF MRS LIU AND HER NEIGHBORS SET OUT IN WOODEN BUCKETS EACH NIGHT HINT OF NO PLUMBING IN THE OLD DAYS LEADING COMRADES PERFORMED SYMBOLIC BUCKETCOLLECTION DUTY TO SHOW THEY WERE AT ONE WITH THE BROAD MASSES NO MORE IN THE WORLD'S FASTESTGROWING ECONOMY IT'S GOODBYE NIGHT SOIL HELLO EAU DE TOILETTE WITH 700000 SEWERLESS HOMES SHANGHAI'S NIGHTSOIL COLLECTORS AREN'T FACING UNEMPLOYMENT ANYTIME SOON MRS LIU'S NEIGHBORHOOD HOWEVER IS ABOUT TO BE DEMOLISHED TO MAKE WAY FOR A GARGANTUAN BLUEMIRRORED MALL ANOTHER TRIBUTE TO TASTE'S TIRELESS REVISIONISTS IT'S NO BIG DEAL THESE DAYS MOST OF SOUTHERN AND COASTAL CHINA IS JUST ONE LARGE CONSTRUCTION SITE GARISH GLASS TOWERS JUTTING UP CHEEK BY JOWL WITH OXPLOWED FARMLAND FOREIGN INVESTMENT IS POURING IN GROWTH IS GALLOPING PARADOXES AND ABSURDITIES ARE SPRINGING UP TAKE A LOOK IN THE BLUE HEAVEN BAR ON THE 43RD FLOOR OF THE JINJIANG TOWER ANY CHINESE WITH MATTRESS MONEY OR FRESH WEALTH CAN PLUNK DOWN 650 YUAN ALMOST 115 FOR A ONEOUNCE SNIFTER OF COURVOISIER VOC COGNAC SOME ACTUALLY DO AND GAZE DOWN UPON A TRANSFORMATION THAT RICHARD NIXON AND CHOU ENLAI COULDN'T HAVE IMAGINED WHEN THEY SIGNED THE SHANGHAI COMMUNIQUE IN 1972 IN THIS HOTEL'S OLD WING BELOW DENG XIAOPING SAID A FEW FLIES WOULD COME IN THROUGH CHINA'S OPEN WINDOW TO THE WORLD FROM UP HERE IT LOOKS LESS LIKE FLIES AND MORE AS IF A SQUADRON OF B52S HAD WHOOSHED OVER SHANGHAI ON A CARPETBOMBING RUN ENTIRE MULTIACRE DOWNTOWN BLOCKS HAVE BEEN FLATTENED THE RUBBLE IS RECYCLED BRICK BY BRICK FOR NEW CONSTRUCTION WHAT ISN'T BEING TORN DOWN IS BEING COVERED OVER WITH SOME OF THE GAUDIEST GLASS MIRRORS AND PLASTIC THIS SIDE OF LAS VEGAS IT'S HONG KONG AND SINGAPORE IN THE '60S TAIPEI AND SEOUL IN THE '70S BANGKOK AND KUALA LUMPUR IN THE '80S ALL ROLLED INTO ONE AND IT'S HAPPENING AT TWICE THE SPEED WITH HALF THE TASTE IT'S RUBBLE AND REGALITY BMWS WITH DRIVERS AND CELLULAR PHONES GRIDLOCKED IN TRAFFIC WITH BICYCLE CARTS PROPELLED BY BAREFOOT PEDDLERS MISTRESSES WITH BEEPERS AND BEGGARS WITH BABIES BLOND RUSSIAN STRIPPERS ENTERTAINING CHINESE MEN CLUTCHING PRICEY BOTTLES OF BOOZE DISPLACED URBANITES FIGHTING FOR NEW LIVES IN DISTANT SUBURBS IT'S LIKE AN EXPLOSION FROM NOTHING SAYS ED FREEDMAN A UNIVERSITY OF WISCONSIN SINOLOGIST WHO WAS HERE A FEW MONTHS BACK WHEN DIANE LONG PRESIDENT OF SHANGHAI'S AMERICAN CHAMBER OF COMMERCE RETURNED FROM THREE MONTHS OF HOME LEAVE SHE WAS FLABBERGASTED BY THE CHANGE THE LIGHTS THE LIFE PEOPLE ACTUALLY EVEN TALK FASTER SHE SAYS WHAT'S GOING ON IN SHANGHAI AND UP AND DOWN THE CHINA COAST MIGHT BE THE BIGGEST CONSTRUCTION PROJECT THE PLANET HAS SEEN SINCE CORAL POLYPS BUILT THE GREAT BARRIER REEF AFTER THE LAST ICE AGE THE POLYPS OF COURSE DIDN'T HAVE BLIMPS HOTAIR BALLOONS BANNERS AND RIBBONS TO HERALD EACH NEW GLEAMING EDIFICE NOR DID THEY HAVE FOREIGN CAPITAL INVESTORS FROM ASIA EUROPE AND THE US ALMOST STAMPEDE OFF ARRIVING PLANES ON THEIR WAY TO OVERBOOKED HOTELS THIRSTING FOR A PIECE OF CHINA'S NOW WIDEOPEN CONSUMER MARKET THE NUMBER OF FOREIGN COMPANIES THAT HAVE DECIDED TO STICK AROUND SO FAR IS APPROACHING 2000 IN SHANGHAI WHERE FOR SOME THE COST OF KEEPING A MANAGERGRADE EXPATRIATE IS 300000 OR SO A YEAR I AM EXCEEDINGLY WELL PAID SAYS A CONSULTANT WITH A BRITISH FIRM HERE BUT WHEN I LOOK AT THE PRICES IN SOME OF THESE WOMEN'S SHOPS I GASP WHO'S BUYING THESE CLOTHES ARE FOR GIRLS PLYING THEIR TRADITIONAL ARTS THE CONSULTANT EXPLAINS THEY ARE NOT THERE FOR SHANGHAI SCHOOLTEACHERS ONE OF THESE TRADITIONAL ARTISTS SASHAYED UP NANJING ROAD IN BROAD DAYLIGHT ON A RECENT AFTERNOON SPORTING TWOINCH HEELS A BLACK VELVET PANTSUIT AND FEATHERED BLACK HAIR THE TIPS FROSTED IN LAVENDER GREEN AND BABY BLUE SHE LITERALLY STOPPED PEDESTRIAN TRAFFIC WANT TO BUY CITY HALL YOU CAN COME PRETTY CLOSE BY WAY OF A 50YEAR LEASE THE BUILDING IS THE BIGGEST ON SHANGHAI'S HISTORIC WATERFRONT BUND AND CITY FATHERS HAVE BEEN TRYING TO UNLOAD IT ON THE HONG KONG & SHANGHAI BANKING CORP ITS FORMER OWNER IN FACT THE ENTIRE BUND IS ON THE LEASING BLOCK A HONG KONG DEVELOPER SNAPPED UP THE CITY'S FORMER MUSEUM BUILDING FOR SHOPS AND OFFICES RELEGATING ITS CONTENTS TO A NEW SPACE IN PEOPLE'S PARK THE SUBWAY SYSTEM IS SUPPOSED TO OPEN IN 1995 MAYOR HUANG JU SAYS THAT BY THE YEAR 2000 SHANGHAI WILL BE ONE OF THE WORLD'S GREAT FINANCIAL AND TRADE CENTERS THE FIRST FOUR MONTHS OF 1993 HE NOTES BROUGHT A SURGE OF FOREIGN INVESTMENT PROJECTS VALUED AT A RECORD 27 BILLION WERE APPROVED A SUM MORE THAN THREE AND A HALF TIMES THE TOTAL FOR THE SAME PERIOD IN 1992 SHANGHAI IS ALSO AWASH IN IMPORTED GOODS SO HOW DOES A YOUNG SHANGHAI ENTREPRENEUR WITH DISPOSABLE INCOME DISPOSE OF IT PEOPLE WHO MAKE MONEY QUICKLY DON'T KNOW HOW TO SPEND IT SO THEY GO TO KARAOKE BARS AND ACT LIKE BIG SHOTS SAYS YUAN JIANGFENG A 30YEAROLD FORMER JOURNALIST BUT ON MOST OF THEIR WISH LISTS ARE A CELLULAR PHONE COSTING 35000 YUAN ON THE BLACK MARKET A RESERVED TAXI ON CALL FOR 10000 YUAN A MONTH UNTIL THEY CAN AFFORD A CAR AND A REALLY THICK 24KARATGOLD BRACELET UNTIL THEY CAN AFFORD A GOLD ROLEX A SATELLITE DISH FOR PULLING DOWN FOREIGN TV SHOWS ISN'T A BAD IDEA EITHER EVEN THOUGH BEIJING RECENTLY BANNED THEM JJ'S DISCO IS SHANGHAI'S STUDIO 54 IT'S IN A CAVERNOUS OLD THEATER IN A BUILDING SAID TO BELONG TO THE PEOPLE'S LIBERATION ARMY AS LIGHTS AND MUSIC PULSE FOG BELCHES ONTO THE DANCE FLOOR AND EVERY NOW AND THEN A CARSIZED SPACESHIP HOVERING TO THE STAR WARS THEME FLOATS DOWNWARD AND DUMPS GLITTERING CONFETTI ON THE GYRATORS BELOW PATRONS PAY A COVER CHARGE OF 48 YUAN THAT ENTITLES THEM TO ONE DRINK AN ENGLISH DEEJAY SHOUTS TO A RAP BEAT OPEN YOUR MINDS SET YOURSELF FREE TELEVISION MONITORS SHOW SNOWBOARDING VIDEOS KENT CIGARETTE BANNERS ARE EVERYWHERE AND ALMOST EVERYONE IS PUFFING AWAY IN THE RELATIVE QUIET OF THE MEN'S ROOM YOUNG MEN JABBER AWAY ON CELLULAR PHONES A 32YEAROLD FACTORY WORKER NAMED MR ZHAU SAYS HE COMES THREE OR FOUR TIMES A MONTH HIS SALARY IS ONLY 450 YUAN A MONTH BUT HIS BROTHER IS GETTING RICH BREEDING DOGS AND CATS TO SELL AS PETS A PUREBRED POODLE GOES FOR 3500 YUAN HE SAYS CUSTOMERS ARE SUPPOSED TO HAVE A PUBLIC SECURITY BUREAU PET PERMIT BUT THESE DAYS HE ADDS MOST DON'T BOTHER TO GET ONE IN JUNE 1946 A COMMUNIST PARTY DELEGATION HEADED BY CHOU ENLAI MOVED INTO A HOUSE AT 73 SINAN RD SCHOOLCHILDREN WEARING RED NECKERCHIEFS TRAIPSE IN AND OUT ON SCHOOL VISITS DAILY ONE OF THE MANAGERS OF THE HISTORIC HOUSE IS WANG LIANFEN A 39YEAROLD FORMER TEACHER WHO'S NEVER BEEN TO JJ'S DISCO I REALLY LOVE WORKING HERE AND EDUCATING THE YOUNG PEOPLE ABOUT THE ACHIEVEMENTS OF THE COMMUNIST PARTY SHE SAYS WHAT WOULD THE PARTY SAY ABOUT ALL THE NEW GLITZ THE COMMUNIST PARTY REPRESENTS THE WISHES OF THE PEOPLE AND THE PEOPLE WANTED DEVELOPMENT SHE REPLIES SO THE PARTY HAD TO SERVE THE PEOPLE THE GIFT SHOP OUTSIDE THE HOUSE SERVES THE PEOPLE WARM PABST BLUE RIBBON BEER FOR 380 YUAN A CAN A BLOCK AWAY IN THE BASEMENT OF AN ELECTRONICS SCHOOL IS THE ART NOUVEAU CLUB WHERE BOTTLES OF 15YEAROLD DIMPLE WHISKEY AND REMY MARTIN XO COGNAC EACH TAGGED WITH A CUSTOMER'S NAME LINE THE SHELVES INSIDE THERE'S A PIANO ROOM KARAOKE ROOMS AND SOMETHING CALLED THE ROMANTIC ROOM WHERE FOR 300 YUAN AN HOUR CUSTOMERS CAN RELAX ON SHEETCOVERED COUCHES CIGARETTE BUTTS AND SPITTLE DOT THE FRONT STEPS OF THE AGING RUSSIAN MISSION ORTHODOX CHURCH AT THE CORNER OF NEW HAPPINESS AND ASSISTING SUNRISE ROADS IN THE OLD FRENCH QUARTER THE CHURCH WAS BUILT IN THE EARLY '30S BY SHANGHAI'S WHITE RUSSIANS AS A SMALLER REPLICA OF A MOSCOW CATHEDRAL BLOWN UP BY STALIN THESE DAYS UNDER ITS PURPLE ONION DOMES BELIEVERS IN A NEW ORTHODOXY SHUFFLE THROUGH THE SHINY BRASS DOORS INSIDE THEY GATHER IN KNOTS OR PACE OR SIT AND STARE AT A NEW ALTAR A GIANT ELECTRONIC SCREEN ON WHICH DIGITIZED CORPORATE DATA SCROLL TOWARD THE HEAVENS OUTSIDE AN OLD MAN SELLS BOOKS PRICED AT ONLY 14 YUAN HIS BESTSELLER IS HOW TO BUY STOCKS THIS IS THE SHANGHAI STOCK EXCHANGE'S NEWEST BRANCH MONEY CHANGERS IN THE TEMPLE A RUSSIAN CONSULAR OFFICIAL ASKED THE RELIGIOUS AFFAIRS BUREAU THEY SAID THAT NOBODY CAME TO WORSHIP ANYMORE AND THAT THE STOCK EXCHANGE HAD OFFERED BIG RENT THE PLACE HAS THE FLAVOR OF AN OFFTRACKBETTING PARLOR OFFERING THE ONLY LEGALIZED FORM OF GAMBLING ALLOWED ZHAO JIAHUA A 39YEAROLD JUST BACK FROM AUSTRALIA SAYS HE PLAYS THE MARKET EVERY DAY OFTEN BUYING AND SELLING WITHIN HOURS I WIN A LITTLE LOSE A LOT BECAUSE I DON'T HAVE EXPERIENCE HE CONCEDES I THINK THERE ARE A LOT OF PEOPLE LIKE ME BUT HE ADDS HE'S LEARNING AND PREDICTING A DECEMBER UPTURN CAPITALISM HAS INFESTED EVEN ONE OF THE COMMUNIST PARTY'S MOST SACRED SHRINES THE FIRST MEETING HOUSE AT 76 XINGYE RD WHERE MAO TSETUNG AND 12 OTHERS GATHERED SECRETLY IN JULY 1921 TO GIVE BIRTH TO THE PARTY THE GREAT HELMSMAN WOULD BE 100 YEARS OLD ON DEC 26 SO A REVERENTIAL EXHIBITION ABOUT HIS LIFE IS ON DISPLAY THERE THE BUSIEST ROOM IN THE HOUSE HOWEVER IS THE GIFT SHOP WHERE FRESHLY MINTED MAOMORABILIA BECKONS CENTENARY PLATES PORTRAYING A HANDSOME YOUTHFUL MAO FOR 16 YUAN APIECE HISANDHER MAO WATCHES PRICED AT 118 YUAN ALSO ON OFFER IS SOMETHING THAT'S BEING CALLED BOTH AN INTELLIGENT INVESTMENT AND THE LUCKIEST THING YOU CAN COLLECT AN 18KARATGOLD DIAMONDENCRUSTED MAO CENTENARY PENDANT PAIRED WITH A FAUX AMERICAN EXPRESS GOLD CARD THAT HAS MAO'S MUG IN THE MIDDLE ONLY 20000 SETS OF THESE HAVE BEEN MADE BY THE PACIFIC INSURANCE CO WHICH IS THROWING IN AS A BONUS A LIFEANDDISMEMBERMENT POLICY ALL FOR THE UNBELIEVABLY LOW PRICE OF ONLY 28000 YUAN HAVE MANY BEEN SOLD NONE YET SAYS A SALESWOMAN IF YOU WANT ONE I CAN GIVE YOU 20 OFF MR STERBA IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9312100182 931210 NEWMONT FIRMS AGREE ON A PLAN FOR PARTIAL MERGER BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER NEWMONT MINING CORP AND ITS 901OWNED UNIT NEWMONT GOLD CO SAID THEY HAVE AGREED TO A PLAN THAT WOULD COMBINE THE ASSETS LIABILITIES AND OPERATIONS OF THE TWO COMPANIES UNDER THE PLAN THE STOCK OF BOTH COMPANIES WOULD CONTINUE TO TRADE SEPARATELY COMPANY OFFICIALS SAID THE TWO STOCKS SHOULD TRADE AT THE SAME PRICE BECAUSE THEY WILL REFLECT IDENTICAL FINANCIAL RESULTS THE COMPANIES STOPPED SHORT OF MERGING COMPLETELY TO AVOID A 379 MILLION GOODWILL CHARGE AGAINST THE SURVIVING COMPANY'S EARNINGS NEWMONT MINING SAID THAT WOULD HAVE HAD TO HAVE BEEN CHARGED AGAINST EARNINGS OVER THE NEXT 10 YEARS A SPOKESMAN SAID CURRENTLY NEWMONT GOLD HOLDS GOLDMINING ASSETS IN THE US MAINLY IN NEVADA NEWMONT MINING HOLDS THE COMPANY'S FARFLUNG INTERNATIONAL GOLDMINING PROPERTIES INCLUDING GOLD OPERATIONS IN UZBEKISTAN AND PERU BOTH COMPANIES HAVE ESSENTIALLY THE SAME MANAGEMENT ANALYSTS WHO HAVE BEEN CALLING FOR THE COMPANIES TO MERGE FOR SOME TIME SAID THE TRANSACTION COULD MAKE IT EASIER FOR THE COMPANY TO BORROW MONEY FOR ITS GOLDMINING PROJECTS IT WOULD PUT ALL THE ASSETS AND LIABILITIES UNDER ONE COMPANY WHICH WOULD MAKE CREDITORS HAPPIER SAID JOHN TUMAZOS ANALYST AT DONALDSON LUFKIN JENRETTE IN NEW YORK NEWMONT MINING COMPANY OFFICIALS SAID THEY HAVEN'T HAD ANY DIFFICULTY RAISING MONEY FOR THE PARENT COMPANY'S VARIOUS PROJECTS BUT SPECULATED THAT THE DE FACTO MERGER WILL MAKE ITS LENDERS MORE COMFORTABLE ANYTHING THAT MAKES OPERATIONS CLOSER TO THE DEBT HOLDER MAKES THE DEBT HOLDER HAPPY SAID WAYNE MURDY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT NEWMONT MINING THE COMPLICATED TRANSACTION WILL RESULT IN NEWMONT MINING HOLDING NO ASSETS OTHER THAN STOCK IN NEWMONT GOLD THE PARENT WILL TRANSFER ALL ITS OPERATING ASSETS AND LIABILITIES TO NEWMONT GOLD NEWMONT WILL ALSO TRANSFER ABOUT 86 MILLION SHARES OF NEWMONT GOLD THAT IT HOLDS TO THE UNIT NEWMONT GOLD WILL ISSUE TO NEWMONT MINING A NEW CONVERTIBLE PREFERRED STOCK THAT MIRRORS THE TERMS OF NEWMONT MINING'S EXISTING PREFERRED STOCK AS A WAY OF PASSING DIVIDENDS FROM OPERATIONS TO NEWMONT MINING'S CURRENT PREFERRED SHAREHOLDERS NEWMONT MINING WILL RETAIN 85850101 SHARES OF NEWMONT GOLD OR 892 OF THE UNIT'S STOCK NEWMONT MINING'S COMMON STOCK WILL BE SPLIT 125 TO 1 SO THAT THERE WILL BE A MATCHING 85850101 SHARES OF THE PARENT'S STOCK NEWMONT MINING'S ANNUAL DIVIDEND WHICH HAS BEEN 60 CENTS A SHARE WILL BE ADJUSTED TO 48 CENTS THE DEAL IS SUBJECT TO APPROVAL OF THE MINORITY SHAREHOLDERS OF NEWMONT GOLD NEWMONT MINING WILL VOTE ITS SHARES IN THE SAME PROPORTION AS THE SHARES VOTED BY MINORITY SHAREHOLDERS THE COMPANIES SAID THE TRANSACTION WILL BE TAXFREE 9312100181 931210 MARKETING & MEDIA GANNETT SEES GAINS IN OPERATING PROFIT AND REVENUE FOR 1993 NEW YORK GANNETT CO SAID IT EXPECTS TO REPORT A 13 GAIN IN OPERATING PROFIT FOR 1993 ON A 4 INCREASE IN REVENUE SPEAKING AT THE PAINEWEBBER GROUP INC MEDIA CONFERENCE VICE CHAIRMAN DOUGLAS H MCCORKINDALE SAID NET INCOME FOR THE YEAR WILL BE VERY CLOSE TO 1989'S RECORD OF 3975 MILLION WHICH IMPLIES EARNINGS PER SHARE OF 270 GIVE OR TAKE A COUPLE OF PENNIES HE SAID THAT GETTING BOTH USA TODAY AND GANNETT'S DETROIT NEWSPAPERS INTO THE PROFIT COLUMN WAS AN IMPORTANT FACTOR IN THE IMPROVEMENT IN 1992 THE COMPANY IN ARLINGTON VA REPORTED NET OF 1997 MILLION OR 139 A SHARE ON REVENUE OF 347 BILLION EARNINGS WERE REDUCED BY 101 A SHARE BY ACCOUNTING CHANGES FOR 1993 JOHN J CURLEY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GANNETT SAID USA TODAY WILL SEE ADVERTISING REVENUE EXCEEDING 170 MILLION A GAIN OF 9 FROM 1992 MR CURLEY SAID THE PAPER PLANS TO RAISE AD RATES AN AVERAGE OF 4 IN 1994 AND EXPECTS A MODEST INCREASE IN AD VOLUME FOR 1994 AFTER GAINS OF 8 IN 1993 AND 5 IN 1992 LOOKING FORWARD TO 1994 MR MCCORKINDALE DIDN'T GIVE A SPECIFIC FORECAST BUT SAID THE COMPANY ASSUMES THAT ADVERTISING TRENDS WILL REMAIN ANEMIC RELATIVE TO THIS POINT IN PREVIOUS RECOVERIES WE'VE BEGUN TO SEE BETTER TRENDS IN CLASSIFIED ADS ESPECIALLY HELPWANTED WHICH IS A POSITIVE DEVELOPMENT WITH REGARD TO ALL THE EXCITEMENT OVER ELECTRONIC FORMATS MR CURLEY CAUTIONED THAT A LOT OF THE TALK SO FAR IS STILL A BIG BLUE SKY PARTICULARLY FOR NEWSPAPERS WHERE CONSUMERS GET A HEFTY PACKAGE OF NEWS FOR 35 OR 50 CENTS A DAY HOWEVER GANNETT HAS BEGUN A NUMBER OF EXPERIMENTAL PROJECTS TO DELIVER ITS NEWS PRODUCTS ELECTRONICALLY AND MR CURLEY SAID THE COMPANY WILL SPEND ALMOST 20 MILLION IN 1993 ON NEW MEDIA 9312100180 931210 BETA WELL SERVICE INC CALGARY ALBERTABETA WELL SERVICE INC SAID OPERATIONS WILL BE SUSPENDED AT FOUR OF 10 OIL RIGS IN SIBERIA WHERE BETA WELL IS A SUBCONTRACTOR THE COMPANY SAID THE SUSPENSION WILL BE SIMILAR TO THE RECENT THREEWEEK SUSPENSION WE EXPERIENCED IN SEPTEMBER A SPOKESMAN FOR THE COMPANY SAID HE DIDN'T KNOW WHY THE OPERATIONS ARE BEING SUSPENDED THE WELLSERVICING COMPANY SAID OPERATING RESULTS FOR THE QUARTER ENDING DEC 31 SHOULD EXCEED THE YEAREARLIER PERIOD DESPITE THE SUSPENSION 9312100179 931210 BUSINESS BRIEF SPARTECH CORP FIRM EXPECTS TO POST RISE IN FISCAL 4THQUARTER PROFIT SPARTECH CORP EXPECTS NEXT WEEK TO REPORT FISCAL FOURTHQUARTER EARNINGS IN THE RANGE OF 17 MILLION TO 18 MILLION OR 14 OR 15 CENTS A SHARE PRESIDENT AND CHIEF EXECUTIVE OFFICER BRADLEY B BUECHLER SAID IN THE YEAREARLIER FOURTH QUARTER THE PLASTICS MAKER IN ST LOUIS EARNED 11 MILLION OR NINE CENTS A SHARE REVENUE FOR THE PERIOD ENDED OCT 30 ALSO IMPROVED CLIMBING TO A RANGE OF 52 MILLION TO 54 MILLION FROM THE YEAREARLIER 444 MILLION MR BUECHLER SAID FOR ALL OF FISCAL 1993 HE SAID SPARTECH EARNED BETWEEN 65 MILLION AND 67 MILLION OR 53 AND 54 CENTS A SHARE COMPARED WITH THE PREVIOUS YEAR'S EARNINGS OF 42 MILLION OR 42 CENTS A SHARE REVENUE RANGED BETWEEN 187 MILLION AND 189 MILLION COMPARED WITH 1688 MILLION 9312100178 931210 DUTCH GDP ROSE 01 IN 1993 AMSTERDAM WITH BUSINESS FAILURES AND UNEMPLOYMENT SPIRALING UPWARD THE DUTCH ECONOMY THIS YEAR HAS RECORDED ITS WORST ANNUAL PERFORMANCE SINCE THE 1982 RECESSION THE GOVERNMENT SAID BUT THE NETHERLANDS STILL POSTED REAL 01 GROWTH IN GROSS DOMESTIC PRODUCT PRELIMINARY DATA FROM THE CENTRAL BUREAU FOR STATISTICS SHOW SEPARATELY RETAIL SALES IN THE NETHERLANDS SLIPPED A NOMINAL 21 IN OCTOBER FROM A YEAR EARLIER WHILE THEY FELL 36 ON A REAL OR PRICEADJUSTED BASIS THE GOVERNMENT SAID 9312100177 931210 WHO'S NEWS CONAGRA INC CONAGRA INC OMAHA NEB ROBERT WOMACK 53 YEARS OLD AND FORMERLY PRESIDENT OF TYSON FOODS INC'S SEAFOOD UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FOOD PROCESSOR'S POULTRY OPERATION AND A MEMBER OF THE PARENT COMPANY'S OFFICE OF THE PRESIDENT SUCCEEDING GEORGE R HAEFNER 61 WHO WAS NAMED CHAIRMAN OF CONAGRA POULTRY CO 9312100176 931210 TECHNOLOGY & HEALTH PROTEIN HELPS CELL RESPONSE IN HIV TESTS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL A NATURAL BLOOD PROTEIN CAN RESTORE FLAGGING IMMUNE RESPONSES OF CELLS TAKEN FROM PEOPLE INFECTED WITH HIV THE VIRUS THAT CAUSES AIDS ACCORDING TO A NEW TESTTUBE STUDY THE PROTEIN INTERLEUKIN12 OR IL12 MADE BY THE BOSTONBASED BIOTECH FIRM GENETICS INSTITUTE INC IS SLATED TO BEGIN HUMAN CLINICAL TESTS IN THE FIRST HALF OF 1994 WHITEBLOOD CELLS OF PEOPLE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS USUALLY FAIL TO MOUNT A NORMAL IMMUNE RESPONSE WHEN EXPOSED TO SUCH INVADERS AS INFLUENZA VIRUS BUT WHEN IL12 WAS ADDED TO THE CELL CULTURES RESEARCHERS FOUND THE IMMUNE RESPONSE WAS ENHANCED IN THE TEST TUBE THIS IS THE MOST POWERFUL IMMUNE RESPONSE MODULATOR WE'VE SEEN SAID GENE M SHEARER OF THE EXPERIMENTAL IMMUNOLOGY BRANCH OF THE NATIONAL CANCER INSTITUTE A UNIT OF THE NATIONAL INSTITUTES OF HEALTH IN BETHESDA MD HOWEVER DR SHEARER NOTED IN AN INTERVIEW THAT MANY QUESTIONS MUST BE ANSWERED BEFORE IL12 CAN BE USED AS A TREATMENT INCLUDING WHETHER IT IS TOXIC WHEN GIVEN AS A DRUG DR SHEARER AND COLLEAGUE MARIO CLERICI ALONG WITH OTHERS AT NIH GENETICS INSTITUTE AND LACKLAND AIR FORCE BASE IN TEXAS PUBLISHED THEIR FINDINGS THIS WEEK IN THE JOURNAL SCIENCE IN A STUDY OF BLOOD DRAWN FROM 47 HIVINFECTED PEOPLE THE RESEARCHERS FOUND IL12 BOOSTED A WIDE ARRAY OF IMMUNE REACTIONS KEY WHITE BLOOD CELLS KNOWN AS TLYMPHOCYTES MULTIPLIED NATURAL KILLER CELLS INCREASED AND A CASCADE OF OTHER IMMUNEBOOSTING AGENTS WAS RELEASED INCLUDING GAMMA INTERFERON AND INTERLEUKIN2 A RELATED PROTEIN HEALTHY CONTROL SUBJECTS DEMONSTRATED A NORMAL IMMUNE RESPONSE WHETHER OR NOT IL12 WAS MIXED WITH THEIR BLOOD CELLS THE STUDY'S FINDINGS BOLSTER AN EMERGING THEORY ABOUT HOW HIV CRIPPLES THE HUMAN IMMUNE SYSTEM AND HOW SUCH CRIPPLING MIGHT BE DELAYED OR REVERSED DRS SHEARER AND CLERICI GALVANIZED THE FIELD OF AIDS RESEARCH 18 MONTHS AGO IN AMSTERDAM BY SHOWING INFECTED PEOPLE CAN CONTROL HIV FOR A LONG TIME AND REMAIN HEALTHY BEFORE THEIR IMMUNE SYSTEM SHIFTS GEARS AND BEGINS A DOWNWARD SLIDE TO IMMUNE COLLAPSE AND PROGRESSION OF ACQUIRED IMMUNE DEFICIENCY SYNDROME IL12 THEY BELIEVE MAY SPARK THE CASCADE OF CELLS AND PROTEINS THAT COMPRISE AN EFFECTIVE TYPE 1 RESPONSE OUR FINDINGS IMPLY THAT IN HIV INFECTION A TYPE 1 RESPONSE CAN BE RESTORED MIN THE TEST TUBE BY IL12 THE RESEARCHERS SAID THOUGH IT IS STILL UNCLEAR WHETHER THE IMMUNE SYSTEM CAN BE RESTORED ONCE IT'S SHIFTED GEARS WHETHER WE'LL BE ABLE TO BRING PATIENTS BACK TO TYPE 1 OR SIMPLY TAKE PEOPLE IN THIS EARLY STAGE AND HOLD THEM THERE WILL REQUIRE HUMAN TRIALS DR SHEARER ADDED IN AN INTERVIEW IN BOSTON STANLEY F WOLF PRINCIPAL SCIENTIST AT GENETICS INSTITUTE AND A COAUTHOR OF THE SCIENCE PAPER SAID THAT THE CLINICAL TRIALS USING IL12 NEXT YEAR WILL INVOLVE BOTH ASYMPTOMATIC HIV CARRIERS AND CANCER PATIENTS IN AN EARLIER STUDY IL12 SUPPRESSED GROWTH OF SOME TUMORS IN MICE DESPITE WIDESPREAD INTEREST AMONG RESEARCHERS THE COMPANY SAID TEST SITES AND STUDY LEADERS HAVE YET TO BE CHOSEN GENETICS INSITUTE IS 65OWNED BY AMERICAN HOME PRODUCTS CORP NEW YORK IL12 WAS DISCOVERED BY THE WISTAR INSTITUTE OF ANATOMY AND BIOLOGY IN PHILADELPHIA AND HOFFMANN LA ROCHE INC OF NUTLEY NJ GENETICS INSTITUTE AND ROCHE HAVE CROSSLICENSED PATENTS ON IL12 AND UNDER TERMS OF THEIR PACT BOTH ARE FREE TO DEVELOP COMMERCIAL APPLICATIONS OF THE DRUG WORLDWIDE GENETICS INSTITUTE HAS ALSO AGREED TO PAY ROYALTIES ON IL12 TO THE WISTAR INSTITUTE EXPERTS REACTED WITH TENTATIVE OPTIMISM IT'S A VERY EXCITING FINDING SAID THOMAS MERIGAN OF STANFORD UNIVERSITY WHO PREDICTED IL12 WOULD BE PART OF A RENAISSANCE IN IMMUNOTHERAPY DR MERIGAN ADDED IT'S A WAY TO PUSH THE HUMAN HOST TO HAVE MORE CONTROL OVER HIV INFECTION GARY PUTKA IN BOSTON CONTRIBUTED TO THIS ARTICLE 9312100175 931210 BUSINESS BRIEF RWE AG GERMAN GROUP SEES RESULTS UNCHANGED FOR FISCAL YEAR GERMAN ENERGY AND ENGINEERING GROUP RWE AG PREDICTED THAT CONSOLIDATED PROFIT FOR THE FISCAL YEAR THAT BEGAN JULY 1 SHOULD BE UNCHANGED FROM THE PREVIOUS YEAR SPEAKING TO SHAREHOLDERS CHAIRMAN FRIEDHELM GIESKE SAID THE EXPECTATIONS ARE BASED ON DEVELOPMENTS DURING THE FIRST MONTHS OF THE CURRENT YEAR MR GIESKE ALSO SAID HE SEES GROUP SALES REMAINING STABLE IN FISCAL 1994 FOR THE YEAR ENDED JUNE 30 1993 RWE HAD NET INCOME OF 881 MILLION MARKS 5169 MILLION ON SALES OF 524 BILLION MARKS RWE PREVIOUSLY REPORTED THAT SALES FOR THE FIRST THREE MONTHS OF THE FISCAL YEAR WERE UP 44 FROM A YEAR EARLIER WHILE EARNINGS WERE STEADY 9312100174 931210 TROUBLED STEELMAKER IN LUXEMBOURG IS HOPING TECHNOLOGY CAN BAIL IT OUT BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL LIKE OTHER TROUBLED EUROPEAN STEELMAKERS ARBED SA HAS ITS BACK TO THE WALL BUT THIS TIME THE LUXEMBOURG COMPANY IS BETTING ITS SURVIVAL ON NEW TECHNOLOGY RATHER THAN ANOTHER GOVERNMENT BAILOUT ARBED'S RESPONSE TO EUROPE'S STEEL CRISIS IS A 171 BILLION LUXEMBOURG FRANC 471 MILLION INVESTMENT PROGRAM THE MONEY WILL BE USED TO REPLACE TWO OF THE COMPANY'S THREE BLAST FURNACES IN LUXEMBOURG WITH STATEOFTHEART ELECTRICARC FURNACES AND TO BUILD ANOTHER ELECTRIC FURNACE IN THE FORMER EAST GERMANY THE NEW FURNACES WHICH USE ELECTRICITY AND SCRAP IRON INSTEAD OF COKE AND IRON ORE WILL BE CHEAPER TO OPERATE AND OFFER MORE FLEXIBILITY TO MEET SHIFTING MARKET DEMANDS THEY HAD TO MAKE A MOVE BUT THEY MADE A SENSIBLE MOVE ARBED NOW HAS A CHANCE TO MAKE IT SUCCESFUL FROM A COMMERCIAL POINT OF VIEW SAID ROD BEDDOWS OF BEDDOWS & CO A STEEL INDUSTRY CONSULTING FIRM IN LONDON OFFICIALS AT ARBED WHICH EXPECTS A LOSS OF FIVE BILLION FRANCS THIS YEAR ACKNOWLEDGE THAT THE COMPANY HAD NO OTHER CHOICE GIVEN EUROPE'S THIRD MAJOR STEEL CRISIS IN LESS THAN 20 YEARS IN THE PAST TWO CRISES ARBED AND OTHER BIG STEELMAKERS TURNED TO THEIR NATIONAL GOVERNMENTS AND TO THE EUROPEAN COMMUNITY FOR FINANCIAL HELP THESE DAYS HOWEVER GOVERNMENTS ARE SHORT OF CASH AND THE SINGLEMARKET PROGRAM HAS FORCED THE EC TO ENFORCE A TOUGH ANTISUBSIDY POLICY IN ADDITION THE OPENING OF EUROPEAN BORDERS MEANS THAT STEELMAKERS IN WESTERN EUROPE NEED TO FACE UP TO LOWCOST PRODUCERS IN THE EAST THE RESULT IS A TECHNOLOGICAL RACE TO BOOST PRODUCTIVITY TEN YEARS FROM NOW A SIGNIFICANT PORTION OF THE MARKET WILL BE SUPPLIED BY PROCESS ROUTES THAT DO NOT EXIST TODAY PREDICTED MR BEDDOWS INNOVATIVE US COMPANIES SUCH AS NUCOR CORP SHOWED THE WAY IN THE 1980S REVOLUTIONIZING AMERICA'S STEEL INDUSTRY WITH MINIMILLS BASED ON THE ELECTRICARC FURNACE CONCEPT MINIMILLS HAVE SPROUTED IN EUROPE TOO MOSTLY IN NORTHERN ITALY BUT NOW IT'S THE HUGE STEEL MILLS EMPLOYING THOUSANDS THAT ARE SWITCHING OVER TO NIMBLER MORE FLEXIBLE UNITS CAPABLE OF DOING THE SAME JOB WITH FAR FEWER EMPLOYEES THE STEEL DIVISION OF GERMANY'S THYSSEN AG FOR EXAMPLE HAS OPENED A PILOT PLANT CAPABLE OF CASTING STEEL SHEET LESS THAN 20 MILLIMETERS THICK THE PROCESS MEANS THE SHEET HAS TO BE ROLLED JUST ONCE INTO ITS DEFINITIVE SHAPE ELIMINATING AS MANY AS 10 INTERMEDIARY STEPS REQUIRED WITH TRADITIONAL CASTING TECHNIQUES SUCH TECHNOLOGICAL IMPROVEMENTS OFFER HUGE PRODUCTION SHORTCUTS BUT ELIMINATING ENTIRE PRODUCTION STAGES COULD COST THOUSANDS OF JOBS WHICH DOESN'T ALWAYS MAKE THE TECHNOLOGICAL PROGRESS POPULAR WITH LABOR UNIONS OR GOVERNMENTS ARBED'S FIRST ELECTRICARC FURNACE STARTED TEST RUNS THIS WEEK AT DIFFERDANGE THE FACILITY IS ONE OF THREE ARBED PLANTS IN LUXEMBOURG THAT PRODUCE THE STEEL BEAMS SECTIONS AND PILINGS THAT HAVE MADE THE COMPANY A LEADER IN STRUCTURAL ELEMENTS USED TO BUILD BRIDGES AND SKYSCRAPERS IN ADDITION TO AN ELECTRIC FURNACE THE DIFFERDANGE PLANT IS BEING EQUIPPED WITH A DOGBONE CONTINUOUS CASTER THE CASTER PRODUCES STEEL BEAMS IN A NEARLY FINISHED SHAPE IN A PROFILE THAT RESEMBLES A DOG BONE WHICH ELIMINATES SEVERAL LAMINATING STEPS TO PRODUCE THE ISHAPED BEAMS THE INVESTMENT SHOULD MORE THAN DOUBLE DIFFERDANGE'S PRODUCTIVITY ARBED SAYS THE NUMBER OF MANHOURS NEEDED TO PRODUCE ONE TON OF FINISHED STEEL WILL BE CUT TO 15 FROM 35 THE 950000TONAYEAR FACILITY CAN EASILY BE TURNED ON AND OFF UNLIKE A BLAST FURNACE WHICH HAS TO BE KEPT RUNNING CONTINUOUSLY FOR 10 OR MORE YEARS THE PLANT USES ELECTRICITY INSTEAD OF COKE CURRENTLY IMPORTED AT HIGH COST FROM GERMANY AND THE PRIMARY MATERIAL STEEL SCRAP IS PLENTIFUL AND CHEAP ARBED FIGURES THE PLAN WILL CUT PRODUCTION COSTS BY 10 BUT IT WON'T SAY WHAT THE CHANGEOVER WILL MEAN IN TERMS OF LOST EMPLOYMENT THE COMPANY PLANS TO CONTINUE ITS POLICY OF PARING ITS 7000MEMBER LUXEMBOURG WORK FORCE BY ABOUT 800 A YEAR BUT WITH STEEL DEMAND EXPECTED TO REMAIN FLAT DOUBLING PRODUCTIVITY SHOULD RESULT IN BIGGER LAYOFFS JOB CUTS ARE A SENSITIVE SUBJECT AT ARBED WHICH IS 41OWNED BY THE GOVERNMENT AND LUXEMBOURG'S LARGEST INDUSTRIAL EMPLOYER 9312100173 931210 INTERNATIONAL AS EC ADDS TIERS TO ITS TOWER OF BABEL TALK OF STRUCTURAL CHANGE INCREASES BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS HAVING BARELY RECOVERED FROM THE BRUISING PUBLIC DEBATE OVER ITS MAASTRICHT TREATY THE EUROPEAN COMMUNITY IS NOW STRUGGLING WITH ANOTHER HIGHLY DIVISIVE ISSUE HOW TO IMPROVE THE WAY IT FUNCTIONS THE 12NATION COMMUNITY HAD HOPED TO PUT OFF THE QUESTION OF REFORMING ITS UNWIELDY INSTITUTIONS UNTIL 1996 WHEN A SPECIAL CONFERENCE IS DUE TO BE HELD ON THE ISSUE BUT THE EXPECTED ADDITION OF FOUR NEW MEMBERS IN 1995 IS FORCING THE EC TO START CONFRONTING THE PROBLEM SOONER AND IT WILL BE ON THE AGENDA OF A SUMMIT THAT STARTS TODAY IF AND WHEN AUSTRIA SWEDEN FINLAND AND NORWAY DO JOIN THE COMMUNITY THEY WILL ADD THREE NEW WORKING LANGUAGES AMOUNTING TO A PERMUTATION REQUIRING 30 NEW TRANSLATIONS TO THE EC'S TOWER OF BABEL IN BRUSSELS THE NUMBER OF EC COMMISSIONERS WILL INCREASE TO 21 AGGRAVATING AN ALREADY DIFFICULT SITUATION WHERE EVERYONE HAS THEIR SAY IN A DISCUSSION MORE WORRYING FOR THE BIG EC NATIONS SUCH AS BRITAIN AND FRANCE THE NEW MEMBERSHIP OF SMALLER COUNTRIES COULD UPSET A DELICATE BALANCE OF POWER INSIDE THE COMMUNITY UNLESS THE CURRENT RULES ARE CHANGED THEY WORRY A FEW SMALL COUNTRIES WOULD BE ABLE TO BLOCK DECISIONS AGREED ON BY ALL OF THE BIGGER ONES EVEN THE SIMPLE ISSUE OF THE EC'S ROTATING SIXMONTH PRESIDENCY WILL BECOME MORE PROBLEMATIC WITHOUT MODIFICATIONS NONE OF THE MAJOR NATIONS WILL REPRESENT THE COMMUNITY ABROAD FOR YEARS ON END AT A TIME WHEN THE EC IS TRYING TO BUILD UP COMMON FOREIGN AND DEFENSE POLICIES AND BECOME A CREDIBLE WORLD POWER AS IT IS THE EC IS ALREADY HAMPERED BY POOR ORGANIZATION THE LINES OF AUTHORITY BETWEEN THE COMMISSION THE EUROPEAN PARLIAMENT AND THE COUNCIL OF MINISTERS WHICH GROUPS NATIONAL GOVERNMENTS ARE OFTEN BLURRED AS A RESULT DECISIONMAKING CAN BE PAINFULLY SLOW AND AT WORST IT CREATES UGLY CONFLICTS THE INTERNAL EC SQUABBLES OVER A NEW WORLDTRADE AGREEMENT ARE A CASE IN POINT THE JOB OF NEGOTIATING A NEW ACCORD ON BEHALF OF THE MEMBER GOVERNMENTS WAS GIVEN TO THE COMMISSION BUT THE FRENCH GOVERNMENT HAS BEEN BITTERLY CRITICAL OF A FARM AGREEMENT THAT THE COMMISSION NEGOTIATED LAST YEAR WITH THE US AND HAS ACCUSED THE COMMISSION OF OVERSTEPPING ITS MANDATE UNTIL THE FARM DEAL WAS MODIFIED THIS WEEK PARIS THREATENED TO VETO THE BROADER WORLDTRADE ACCORD FEW ARE COMFORTABLE WITH THE CURRENT INSTITUTIONAL ARRANGEMENT AN INSTITUTIONAL REFORM IS INDISPENSABLE SAYS VALERY GISCARD D'ESTAING THE FORMER FRENCH PRESIDENT HE WANTS THE OUTLINES OF A REFORM TO BE AGREED UPON NOW BEFORE THE EC TAKES ON NEW MEMBERS IN ORDER TO AVOID CREATING EVEN MORE DIFFICULTIES IN THE 1996 CONFERENCE EUROPE NEEDS A PRESIDENT A REPRESENTATIVE PARLIAMENT AND A COMMISSION THAT IS SMALLER AND POLITICALLY RESPONSIBLE SAYS MR GISCARD D'ESTAING WHOSE STANCE HAS WIDE SUPPORT IN THE EUROPEAN PARLIAMENT THE EC REMAINS COMMITTED AT LEAST ON PAPER TO GROWING INTO A MUCH LARGER BODY EVENTUALLY ENCOMPASSING THE FORMER COMMUNIST STATES OF EASTERN EUROPE THAT AMBITION MAKES A SUCCESSFUL INSTITUTIONAL STRUCTURE ALL THE MORE NECESSARY BUT REVAMPING THE EC IS A POLITICALLY EXPLOSIVE QUESTION SMALLER COUNTRIES ARE NERVOUS THAT THEIR NATIONAL INTERESTS WILL NO LONGER BE ADEQUATELY REPRESENTED IN A STREAMLINED COMMUNITY WHILE BIGGER ONES GRIPE THAT THEY SHOULD BE ABLE TO PREVAIL MORE EASILY THE PARLIAMENT MEANWHILE IS UNHAPPY THAT IT HAS SO LITTLE SAY OVER LEGISLATION EVEN THOUGH IT IS THE ONLY EC BODY THAT IS DEMOCRATICALLY ELECTED MANY OFFICIALS ARE NERVOUS ABOUT ALLOWING SUCH TENSIONS TO COME INTO THE OPEN SO SOON AFTER THE FIGHT OVER THE MAASTRICHT TREATY ON EUROPEAN UNITY A BIG INSTITUTIONAL DEBATE WOULD BE LIKE PICKING THE COMMUNITY UP BY THE ROOTS TO SEE IF IT IS STILL GROWING WARNS A BRITISH OFFICIAL INDEED WHEN THE EC COMMISSION'S TRANSLATION SERVICE RECENTLY RAISED THE QUESTION OF HOW IT WAS SUPPOSED TO COPE WITH NEW LANGUAGES OFFICIALS SAY IT WAS TOLD TO KEEP QUIET FOR FEAR OF HIGHLIGHTING UNWANTED PROBLEMS BUT AT TODAY'S BRUSSELS SUMMIT BELGIUM WHICH CURRENTLY HOLDS THE PRESIDENCY WILL PRESENT SOME INITIAL PROPOSALS TO TAKE ACCOUNT OF THE FOUR PROSPECTIVE NEW EC MEMBERS OFFICIALS SAY THE BELGIANS WANT TO CHANGE THE ORDER OF THE ROTATING PRESIDENCY TO INTERSPERSE BIG MEMBER STATES BETWEEN CLUMPS OF SMALLER ONES THEY ARE ALSO PROPOSING CHANGES TO THE VOTING SYSTEM IN THE COUNCIL OF MINISTERS TO ENSURE THE EXISTING WEIGHTING OF LARGE AND SMALL COUNTRIES IS MAINTAINED BUT THE BELGIAN PROPOSALS AMOUNT TO A BARE MINIMUM AND THE VOTING PROVISIONS ARE CONTESTED BY BRITAIN AND SPAIN THEY ALSO DON'T ADDRESS THE LARGER ORGANIZATIONAL PROBLEMS THAT MUST BE TACKLED SOON SOME NATIONS ARE URGING THE ESTABLISHMENT OF A NEW COMMITTEE THAT WOULD DRAFT PROPOSALS FOR A MORE FUNDAMENTAL OVERHAUL AS THE DISCUSSIONS CONTINUE THE FOUR CANDIDATE MEMBERS FEAR THEY MAY BE THE ONES WHO WILL BEAR THE BRUNT MEMBERSHIP NEGOTIATIONS ARE GOING SLOWLY THEY COMPLAIN AND THE EC IS TAKING A VERY FIERCE STANCE ON SOME ISSUES MOST RECENTLY ON THE NEED FOR AUSTRIA AND THE SCANDINAVIAN NATIONS TO SLASH THEIR AGRICULTURAL SUBSIDIES THE MOMENT THEY JOIN IF THE CONDITIONS FOR JOINING ARE TOO TOUGH THESE CANDIDATE NATIONS FEAR THEIR CITIZENS MAY REJECT THEM REFERENDUMS ARE DUE TO BE HELD IN ALL FOUR NATIONS SOMETIME NEXT YEAR AFTER THE NEGOTIATIONS ARE COMPLETED AND PUBLIC OPINION IN ALL OF THEM ALREADY RANGES BETWEEN LUKEWARM SUPPORT AND DOWNRIGHT HOSTILITY POLLS SHOW 9312100172 931210 THURSDAY'S MARKETS BONDS ADVANCE DESPITE NEWS ON INFLATION BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES ROSE DESPITE A STRONGERTHANEXPECTED REPORT ON INFLATION STOCK PRICES SLIPPED AND THE DOLLAR EDGED LOWER THE DOW JONES INDUSTRIAL AVERAGE FELL 475 POINTS TO 372978 STANDARD & POOR'S 500STOCK INDEX LOST 211 TO 46418 AND THE NASDAQ COMPOSITE INDEX DROPPED 640 TO 76149 BOND PRICES INITIALLY SANK AFTER THE LABOR DEPARTMENT SAID PRODUCER PRICES EXCLUDING FOOD AND FUEL ROSE AT A 04 PACE ABOVE THE EXPECTED 02 BUT PRICES REVERSED COURSE ONCE TRADERS REALIZED THE INCREASE WAS LINKED LARGELY TO A 21 JUMP IN CAR PRICES AND THAT FOR THE MOST PART INFLATION REMAINS SUBDUED BASIC METALS PRICES AND GOLD SOFTENED AFTER ADVANCING WEDNESDAY BUT OIL MOVED HIGHER THE DOW INDUSTRIALS CLIMBED MORE THAN 14 POINTS FURTHER INTO RECORD TERRITORY BUT THEN DROPPED DESPITE STRONG GAINS AMONG SOME ECONOMICALLY SENSITIVE STOCKS WEAK TECHNOLOGY STOCKS DRAGGED THE NASDAQ COMPOSITE LOWER AFTER RELEASE OF A DISAPPOINTING REPORT ON SEMICONDUCTOR ORDERS OVERSEAS TOKYO STOCKS JUMPED 34 ON HOPES THE GOVERNMENT WILL ADDRESS THE STOCK MARKET'S PROBLEMS THE HONG KONG MARKET SHOT UP 25 TO ITS THIRD STRAIGHT RECORD IN EUROPE THE GERMAN AND SWISS STOCK MARKETS CLIMBED TO RECORDS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 092 TO 10995 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2831 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1157 ISSUES FELL AND 889 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN 1/4 POINT OR UNDER 250 FOR EACH 1000 FACE AMOUNT TO YIELD 616 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17047 MARKS AND 10865 YEN COMPARED WITH 17075 MARKS AND 10888 YEN WEDNESDAY 9312100171 931210 APACHE TO BUY COMMON SHARES HOUSTON APACHE CORP SAID ITS BOARD HAS AUTHORIZED THE COMPANY TO PURCHASE UP TO FIVE MILLION APACHE COMMON SHARES APACHE AN OIL AND NATURAL GAS CONCERN WITH 60850614 COMMON SHARES OUTSTANDING AS OF NOV 30 SAID IT OCCASIONALLY WILL BUY BACK SHARES AS CONDITIONS WARRANT IN EITHER OPENMARKET PURCHASES OR PRIVATELY NEGOTIATED TRANSACTIONS 9312100170 931210 INTERNATIONAL VW'S CHAIRMAN NOW SEES '93 LOSS OF 135 BILLION BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL WOLFSBURG GERMANY VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH IN A YEAREND REVIEW CLARIFIED THE AUTO MAKER'S FORECAST FOR 1993 SAYING VW IS LIKELY TO POST A CONSOLIDATED LOSS OF 23 BILLION MARKS 135 BILLION DESPITE THE PROJECTED 1993 LOSS AND EXPECTATIONS FOR MERELY A BREAKEVEN 1994 MR PIECH SAID VW PLANS TO HOLD ITS DIVIDEND STEADY AT TWO MARKS A SHARE ONE WANTS TO PROVIDE SHAREHOLDERS A CERTAIN CONTINUITY HE SAID JUST TWO WEEKS AGO MR PIECH HAD PEGGED THE 1993 LOSS AT TWO BILLION MARKS A SPOKESMAN SAID YESTERDAY THAT THE EARLIER ESTIMATE WAS THE GROUP'S PRETAX FIGURE AND THAT THE EXTRA 300 MILLION MARKS IN LOSSES COMES FROM TAXES THAT VW'S FEW PROFITABLE DIVISIONS WILL HAVE TO PAY THE FIGURES PRESENTED YESTERDAY AREN'T OFFICIAL 1993 ACCOUNTS BUT RATHER A LOOK BACK AT THE YEAR BY MR PIECH ACCORDING TO THE SPOKESMAN THE LOSS OF 23 BILLION MARKS FOLLOWS A PROFIT OF 147 MILLION MARKS IN 1992 AND 11 BILLION MARKS IN THE BOOM YEAR OF 1991 WHEN THE COMPANY PAID OUT 11 MARKS AN ORDINARY SHARE AND 12 MARKS A PREFERRED SHARE THE TWOMARK DIVIDEND FOR 1993 WOULD APPLY TO BOTH THE ORDINARY AND PREFERRED SHARES AS IT DID LAST YEAR SUFFERING FROM A SHRINKING SHARE IN A SHRINKING EUROPEAN CAR MARKET VW WILL BE FORCED TO CONTINUE A PROGRAM OF SLASHING AWAY AT INVESTMENTS AND SQUEEZING COSTS TO BATTLE ITS WAY OUT OF LOSSES MR PIECH SAID IN 1993 SALES ARE EXPECTED TO SHOW A 10 DROP TO 77 BILLION MARKS ON A UNIT SALES DROP OF 12 TO 31 MILLION UNITS VW'S COSTCUTTING IS DRAWING FLAK FROM GERMAN INDUSTRY BECAUSE OF INDICATIONS THE TROUBLED AUTO MAKER IS CONTEMPLATING INTRODUCING EVEN SHORTER SHIFTS BEYOND ITS RECENTLY INTRODUCED FOURDAY WORKWEEK SO WORKERS COULD APPLY FOR GOVERNMENT SUBSIDIES OR BENEFITS FROM THE FEDERAL UNEMPLOYMENT OFFICE FOR THE COMPANY'S CORE OPERATIONS VW AG MR PIECH PREDICTED A PROFIT OF BETWEEN 60 MILLION MARKS AND 80 MILLION MARKS COMPARED WITH A 132 MILLION MARK PROFIT IN 1992 BUT AUTO INDUSTRY ANALYSTS EXPRESSED SKEPTICISM THAT THE COMPANY COULD ACHIEVE THAT LEVEL WITHOUT DRAWING DOWN HIDDEN RESERVES OR CALCULATING SOME EXTRAORDINARY GAINS IN THE FIRST NINE MONTHS OF THE YEAR THE CORE OPERATIONS POSTED A LOSS OF 768 MILLION MARKS SINCE THEN THE GERMAN CAR MARKET HAS CONTINUED TO DETERIORATE VW'S GERMAN SALES HAVE DROPPED ABOUT 24 TO 945000 UNITS THIS YEAR MR PIECH DENIED THAT BOOKKEEPING EXERCISES WERE BEING USED TO ENHANCE THE RESULTS AT THE CORE OPERATIONS EARLIER IN THE YEAR MR PIECH HAD PROMISED THAT THE ENTIRE VW GROUP WOULD BREAK EVEN THIS YEAR AFTER IT WAS DISCLOSED THAT VW'S SPANISH SUBSIDIARY WAS GOING TO HAVE A LOSS OF TWO BILLION MARKS FOR THE YEAR HOWEVER MR PIECH WAS FORCED TO RETRACT THAT PROMISE AND HAS SINCE STAKED HIS CREDIBILITY ON GUARANTEEING THAT AT LEAST THE CORE OPERATIONS WOULD BREAK EVEN THIS YEAR VW SAYS THAT PRODUCTIVITY GAINS AND COST SAVINGS FOSTERED BY J IGNACIO LOPEZ DE ARRIORTUA THE CONTROVERSIAL FORMER GENERAL MOTORS CORP PURCHASING CHIEF ARE LEADING TO IMPROVED RESULTS AT THE COMPANY'S CORE OPERATIONS 9312100169 931210 BAA'S AIRPORT TRAFFIC RISES LONDON BAA PLC BRITAIN'S BIG AIRPORTMANAGEMENT COMPANY SAID PASSENGER TRAFFIC AT ITS SEVEN AIRPORTS INCREASED 42 IN NOVEMBER FROM A YEAR EARLIER THE GAIN PUT TRAFFIC FOR THE FIRST NINE MONTHS OF BAA'S FISCAL YEAR UP 49 FROM A YEAR EARLIER A BREAKDOWN OF THE NOVEMBER DATA SHOWED TRAFFIC AT STANSTEAD AIRPORT NORTH OF LONDON UP 12 GATWICK TO THE SOUTH OF THE CAPITAL SHOWED A 44 RISE WHILE HEATHROW TO THE WEST OF LONDON WAS UP 32 9312100168 931210 BUSINESS BRIEF SOUTHERN PACIFIC PLANS PUBLIC OFFERING ANNOUNCES SALE OF CALIFORNIA RAIL LINE SOUTHERN PACIFIC RAIL CORP PLANS A 450 MILLION PUBLIC OFFERING AND ANNOUNCED A 240 MILLION PROPERTY SALE STEPS THAT ANALYSTS SAID WOULD HELP ACCELERATE REVIVAL EFFORTS AT THE RAILROAD THE COMPANY SAID IT INTENDS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF UP TO ABOUT 25 MILLION SHARES THE OFFERING WILL INCLUDE ABOUT 15 MILLION NEWLY ISSUED SHARES AND ABOUT 10 MILLION SHARES TO BE OFFERED BY CERTAIN SOUTHERN PACIFIC STOCKHOLDERS SOUTHERN PACIFIC A SAN FRANCISCOBASED RAIL HOLDING COMPANY ALSO SAID THE PORTS OF LOS ANGELES AND LONG BEACH CALIF AGREED TO PURCHASE ITS 20MILE RAIL LINE BETWEEN THE PORTS AND DOWNTOWN LOS ANGELES RAIL YARDS THE TRACK WILL BECOME THE ALAMEDA CORRIDOR ENVISIONED AS A FASTER RAIL FREIGHT ROUTE FOR SOUTHERN PACIFIC AND OTHER RAILROADS THE TWO CITIES HAD ORIGINALLY AGREED TO ACQUIRE THE TRACK FOR 260 MILLION BUT WITHDREW THEIR OFFER IN AUGUST CITING TIME CONSTRAINTS ENVIRONMENTAL CONDITIONS AND OTHER FACTORS SOUTHERN PACIFIC SAID THEY EXPECT TO CLOSE THE TRANSACTION BY DEC THE EQUITY OFFERING COMBINED WITH THE SALE OF THE ALAMEDA CORRIDOR IS A MAJOR STEP FORWARD FOR SOUTHERN PACIFIC IN CLEANING UP ITS BALANCE SHEET SAID JACK KAWA SENIOR VICE PRESIDENT OF RESEARCH AT DEAN WITTER REYNOLDS INC IT PROVIDES THEM ENORMOUS BREATHING ROOM TO PURSUE THEIR LOCOMOTIVE ACQUISITIONS AND OTHER CAPITAL EXPENDITURES TO HELP THE RAILROAD RUN MORE EFFICIENTLY SOUTHERN PACIFIC SAID IT PLANS TO USE PROCEEDS FROM THE RAIL LINE SALE AND THE PUBLIC OFFERING TO REDUCE DEBT AND FOR GENERAL CORPORATE PURPOSES THE COMPANY DECLINED TO GIVE FURTHER DETAILS OTHER THAN TO SAY THAT SOUTHERN PACIFIC'S LONGTERM DEBT WAS 124 BILLION AS OF SEPT 30 SCOTT FLOWER A KIDDER PEABODY ANALYST SAID HE EXPECTS THE MOVES TO ENABLE SOUTHERN PACIFIC TO LOWER ITS INTEREST EXPENSE BY 10 MILLION TO 15 MILLION DESPITE THE NEWS SOUTHERN PACIFIC SHARES YESTERDAY CLOSED DOWN 50 CENTS AT 1850 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY WENT PUBLIC IN AUGUST A SOUTHERN PACIFIC SPOKESMAN SAID THAT PHILIP ANSCHUTZ A DENVER BILLIONAIRE WHO HELD A 519 STAKE IN THE COMPANY AFTER THE AUGUST OFFERING WILL REMAIN THE COMPANY'S SINGLE LARGEST HOLDER BUT WILL LOSE HIS MAJORITY POSITION AFTER ISSUANCE OF THE ADDITIONAL 15 MILLION SHARES 9312100167 931210 CHINA A SPECIAL REPORT READING THE MARKET NATIVE INTELLIGENCE THREE CHINESE BUSINESSMEN OFFER SOME INSIGHTS INTO A PERPLEXING MARKET BY URBAN C LEHNER HONG KONG FOR MORE PERSPECTIVE ON NAVIGATING CHINA'S TURBULENT ECONOMY THIS NEWSPAPER TALKED TO THREE PROMINENT HONG KONG AND TAIWAN INVESTORS WHO HAVE JUMPED INTO CHINA IN A BIG WAY RONNIE CHAN CHAIRMAN OF HANG LUNG DEVELOPMENT GROUP A BIG HONG KONG PROPERTY COMPANY CY KAO VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PRESIDENT ENTERPRISES TAIWAN'S LARGEST FOOD COMPANY AND VICTOR LO CHAIRMAN OF HONG KONG'S GOLD PEAK INDUSTRIES GROUP A MAJOR ELECTRONICS MANUFACTURER THEY OFFER THE FOLLOWING ADVICE ON GETTING STARTED AND DOING BUSINESS IN CHINA AS WELL AS ON THE CRUCIAL STEPS TO TAKE AND THE MISSTEPS TO AVOID MONEY IS THE KEY MOTIVATOR IT'S SALARY PACKAGES AND BONUSES THAT COUNT SAYS MR KAO A 64YEAROLD TAIWANESE WHOSE COMPANY HAS ESTABLISHED 10 FACTORIES IN CHINA BUT HE ADDS TRAINING PROGRAMS WHICH ARE NOT PROVIDED BY INDUSTRIES IN CHINA ARE ATTRACTIVE AS WELL TAILOR THE PRODUCT TO THE MARKET WHEN MR LO'S GOLD PEAK INDUSTRIES BEGAN SELLING CAR AUDIO SYSTEMS IN CHINA IN THE MID1980S IT FOUND THAT CHINESE CUSTOMERS WERE A DECADE BEHIND THE REST OF THE WORLD IN THEIR TASTES WHAT THEY WANTED WERE MODELS THE COMPANY HAD LONG SINCE DISCONTINUED BUT RATHER THAN FIGHT GOLD PEAK SWITCHEDBACK TO MAKING ITS OLDER MODELS BEWARE THE CULTURE GAP IN SOME WAYS CHINESE AND NONCHINESE ARE PEOPLE FROM DIFFERENT PLANETS YET NOT MANY WESTERNERS APPRECIATE JUST HOW VAST THE DIFFERENCES ARE MR CHAN A 44YEAROLD HONG KONG NATIVE WHOSE CHINA INVESTMENTS INCLUDE SEVERAL MANUFACTURING VENTURES AND 1 BILLION IN SHANGHAI REALESTATE PROJECTS SAYS THE KEY TO SUCCESS IN CHINA IS CORRECTLY SIZING UP THE CHINESE PEOPLE WITH WHOM YOU'RE DEALING HOWEVER FEW NONCHINESE CAN DO THIS WELL THEY'RE APT TO CONFUSE CULTURAL AND INDIVIDUAL CHARACTERISTICS THEY'RE ALSO APT TO MAKE JUDGMENTS ON THE BASIS OF ENGLISHLANGUAGE ABILITY WHICH MAY NOT BE RELATED TO INTELLIGENCE OR BUSINESS ACUMEN EITHER YOUR COMPANY MUST BE ABLE TO DO BUSINESS IN OTHER CULTURES MR CHAN SAYS OR IT MUST RELY ON OVERSEAS CHINESE WHO KNOW BOTH THE WEST AND CHINA FOR SECOND OPINIONS ON PEOPLE TAKE YOUR TIME FOREIGNERS PARTICULARLY AMERICANS TEND TO UNDERESTIMATE THE EFFORT NEEDED TO SIZE UP THE CHINESE MARKET AND FIND GOOD CHINESE MANAGERS AND LOCAL PARTNERS THE THREE BUSINESSMEN AGREE IF I LIVING IN HONG KONG HAVE TO SPEND OVER A YEAR MAKING MONTHLY TRIPS INTO CHINA TO GET TO KNOW WHAT'S GOING ON THERE AMERICANS HAD BETTER EXERT TWICE AS MUCH EFFORT MR CHAN SAYS FIRMNESS IS AS IMPORTANT AS FAIRNESS IN OTHER WORDS FIRE YOUR NONPERFORMERS AS READILY AS YOU REWARD THOSE WHO DO WELL WHEN WE GO TO CHINA THERE ARE TWO THINGS WE INSIST ON SAYS MR LO A 43YEAROLD HONG KONG NATIVE WHOSE FAMILY COMPANIES HAVE MORE EMPLOYEES IN CHINA 3750 IN 18 JOINT VENTURES THAN IN HONG KONG ONE IS WE MUST BE ABLE TO HIRE AND FIRE THE OTHER IS WE MUST BE ABLE TO SET UP AN INCENTIVE SYSTEM BE REALISTIC IN YOUR EXPECTATIONS FOR THE PAST 10 YEARS MOST COMPANIES UNDERESTIMATED THE POTENTIAL OF THE CHINA MARKET MR LO SAYS BUT UNFORTUNATELY I ALSO THINK THAT IN THE NEXT 10 YEARS MOST COMPANIES WILL OVERESTIMATE THE MARKET POTENTIAL DON'T SUCCUMB TO CORRUPTION EVERYONE KNOWS THAT EVERYONE PAYS BRIBES IN CHINA BUT EVERYONE IS WRONG THE THREE SAY THERE ARE PLENTY OF PEOPLE WHO CAN DO A DEAL IN CHINA WHO ARE HONEST MR CHAN SAYS HE NOTES THAT HE SOMETIMES TELLS CHINESE COUNTERPARTS ON FIRST MEETING I'M AN HONEST GUY YOU CHECK WITH ANY BANKER ANY LAWYER AFTER THAT HE SAYS SOME PEOPLE AUTOMATICALLY STAY AWAY FROM ME THAT'S GREAT IT SAVES ME THE HASSLE OF FINDING OUT THAT THEY'RE CROOKS BE STRAIGHTFORWARD IN NEGOTIATIONS YOU CAN BE VERY DIRECT IN DEALING WITH LOCAL OFFICIALS MR KAO SAYS IF YOU FEEL THINGS NEED TO BE CHANGED SAY IT THEY WILL ACCEPT THAT BUT DON'T BE ANTAGONISTIC JOIN IN THE NATIVE BUSINESS RITUALS WHICH ARE GENERALLY INTENDED TO CREATE A FRIENDLY ATMOSPHERE YOU NEEDN'T GET EVERY DETAIL EXACTLY RIGHT MR CHAN A TEETOTALER DOES HIS BANQUET DRINKING AND TOASTING WITH COCACOLA WHILE HIS COUNTERPARTS DOWN MAOTAI A CHINESE LIQUOR CONSIDER CHINA FIRST AS AN EXPORT PLATFORM THAT'S WHAT GOLD PEAK DOES TAKING ADVANTAGE OF CHINA'S CHEAP LABOR ONLY AS A BUSINESS GROWS DOES GOLD PEAK START EXPLORING SALES POSSIBILITIES WITHIN THE COUNTRY SELLING SOME OF THE PLANT'S EXCESS PRODUCTION AND SEEING WHAT WORKS MR LEHNER IS THE EDITOR OF THE ASIAN WALL STREET JOURNAL 9312100166 931210 BUSINESS BRIEF BANCA COMMERCIALE ITALIANA ITALY CONSIDERS SPEEDING UP THE PRIVATIZATION OF BANK ITALY SAID IT IS CONSIDERING SPEEDING UP THE PRIVATIZATION OF STATECONTROLLED BANK BANCA COMMERCIALE ITALIANA TO FEBRUARY BCI IS CURRENTLY CONTROLLED BY GIANT STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE AND HAD BEEN SLATED FOR PRIVATIZATION NEXT SPRING IN A STATEMENT PRIME MINISTER CARLO AZEGLIO CIAMPI SAID TAKING INTO ACCOUNT THE FAVORABLE RECEPTION TO THE CREDITO ITALIANO OFFERING ON THE MARKET OF WHICH WE TOOK ACCOUNT WITH GREAT SATISFACTION IT WAS DECIDED TO INVITE IRI TO CONSIDER THE POSSIBILITY OF CARRYING OUT THE PRIVATIZATION OF BANCA COMMERCIALE ITALIANA BY THE END OF FEBRUARY A PUBLIC OFFERING FOR IRICONTROLLED COMMERCIAL BANK CREDITO ITALIANO THIS WEEK WAS CLOSED EARLY DUE TO THE ENORMOUS DEMAND FOR CREDITO ITALIANO SHARES 9312100165 931210 SMALL STOCK FOCUS CHIP MAKERS SAG UNDER PROFITTAKING PRESSURE PULLS DOWN OVERALL MARKET BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PERSISTENT PROFITTAKING IN THE TECHNOLOGY SECTOR PARTICULARLY AMONG CHIP MAKERS LEFT SMALLCAPITALIZATION ISSUES LOWER THE GROUP CRACKED UNDER PRESSURE FROM A WEAK SEMICONDUCTORINDUSTRY BOOKTOBILL RATIO FOR NOVEMBER LATE WEDNESDAY THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THE RATIO FELL TO 099 LAST MONTH DOWN FROM 100 IN OCTOBER IN THE YEAREARLIER PERIOD IT WAS 113 AMONG SMALLER CHIP STOCKS NOVELLUS SYSTEMS SAN JOSE CALIF FELL 1 1/8 TO 28 3/4 ADVANCED SEMICONDUCTOR MATERIALS INTERNATIONAL OF THE NETHERLANDS SLIPPED 1/8 TO 1 3/4 AND KLA INSTRUMENTS OF SAN JOSE EASED 1/2 TO 22 1/2 THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES FELL 097 POINT OR 038 TO END AT 25340 ON NASDAQ THE COMPOSITE INDEX DECLINED 640 POINTS OR 083 TO FINISH AT 76149 INVESTOR INTEREST WAS STRONG FOR VERITAS SOFTWARE WHICH CLOSED AT 19 1/2 ABOVE ITS INITIAL PRICE YESTERDAY MORNING OF 16 A SHARE THE COMPANY SAID PROCEEDS WILL GO TOWARD GENERAL CORPORATE PURPOSES INCLUDING CAPITAL SPENDING AND THE POSSIBLE ACQUISITIONS OF BUSINESSES PRODUCTS AND TECHNOLOGIES ANOTHER INITIAL PUBLIC OFFERING SHAW GROUP BATON ROUGE LA JUMPED TO 15 3/4 FROM ITS DEBUT PRICE LATE WEDNESDAY OF 14 1/2 A SHARE THE PIPEFABRICATING COMPANY SAID PROCEEDS WILL BE USED TO PAY DEBT ON WEDNESDAY GATEWAY 2000 JUMPED 28 ON ITS FIRST TRADING DAY AND LED THE NASDAQ MOSTACTIVE LIST WITH 112 MILLION SHARES THE COMPANY'S SHARE PRICE LOST 1 TO 18 1/4 YESTERDAY APART FROM THE SEMICONDUCTOR GROUP MANY OTHER TECHNOLOGY ISSUES ALSO HAD A POOR SHOWING WIND RIVER SYSTEMS AN ALAMEDA CALIF SOFTWARE FIRM SAGGED 1/2 TO 6 SAPIENS INTERNATIONAL A NETHERLANDS SOFTWARE CONCERN RETREATED 2 TO 19 AND PARALLAN COMPUTER A MOUNTAIN VIEW CALIF NETWORKING COMPANY SANK 1 5/8 TO 13 3/8 DATAWARE TECHNOLOGIES' STOCK WAS CLOBBERED BY A DISAPPOINTING FOURTHQUARTER EARNINGS OUTLOOK THE CAMBRIDGE MASS SOFTWARE COMPANY WHICH PLUMMETED 7 1/4 OR 45 TO 8 3/4 SAID NET INCOME FOR THE PERIOD WILL FALL BELOW ANALYSTS' ESTIMATES OF 11 CENTS A SHARE ALTHOUGH IT DECLINED TO BE MORE SPECIFIC THE COMPANY SAID UNEXPECTED SHORTFALL IN REVENUE IS LIKELY GUPTA A MENLO PARK CALIF SOFTWARE CONCERN ROSE 1 1/2 TO 15 3/4 THE COMPANY HAS UNVEILED SQLCONSOLE A GRAPHICAL DATABASE ADMINISTRATION AND MONITORING TOOL FOR GUPTA'S SQLBASE SERVER NEWCOR LOST 3 TO 11 1/8 AFTER REPORTING FISCAL FOURTHQUARTER PROFIT FELL TO 15 CENTS A SHARE FROM 62 CENTS A SHARE THE BLOOMFIELD HILLS MICH MACHINETOOLS MAKER SAID FISCAL FIRSTQUARTER EARNINGS MAY APPROACH BREAKEVEN BUT SECOND AND THIRDQUARTER NET INCOME WILL LIKELY FALL BELOW THE 38 CENTS AND 31 CENTS REPORTED RESPECTIVELY FOR THE YEAREARLIER PERIODS FISCAL 1994 SALES AND EARNINGS PROBABLY WILL FALL BELOW NET INCOME OF 19 CENTS A SHARE WHICH INCLUDES AN ACCOUNTING ADJUSTMENT ON SALES OF 115 MILLION FOR FISCAL 1993 VARITRONIC SYSTEMS DROPPED 3 1/2 TO 11 1/4 THE MINNEAPOLIS SUPPLIER OF BUSINESSGRAPHICS PRODUCTS SAID DISCUSSIONS REGARDING ITS PROPOSED ACQUISITION OF KROY HAVE BEEN TERMINATED KROY OF SCOTTSDALE ARIZ MAKES LETTERING AND LABELING SYSTEMS ALTHOUGH MOST MARKET OBSERVERS SAY A BASICALLY BENIGN REPORT ON NOVEMBER PRODUCER PRICES CARRIED LITTLE WEIGHT THEY SAY THAT CONSUMER PRICE DATA DUE OUT TODAY WILL BE WIDELY WATCHED NASDAQ NATIONAL MARKET STOCKS THAT HIT HIGHS FOR THE YEAR TO DATE TOTALED 67 WHILE 44 ISSUES HIT LOWS NEWCOR INC SAID NET INCOME FOR THE FISCAL YEAR ENDING IN OCTOBER IS EXPECTED TO BE SOMEWHAT BELOW THE RECORD PROFIT FROM OPERATIONS OF 5364000 OR 116 A SHARE A YEAR EARLIER INCLUDING AN ACCOUNTING ADJUSTMENT NET FOR FISCAL 1993 WAS 884000 OR 19 CENTS A SHARE FRIDAY'S SMALL STOCK FOCUS INCORRECTLY REPORTED THAT NEWCOR EXPECTS FISCAL 1994 EARNINGS TO FALL BELOW 19 CENTS A SHARE 9312100164 931210 TAIWAN PRESSED TO OPEN MARKET TO RICE IMPORTS COUNTRY IS AMONG THOSE FACING EXCHANGING BAN FOR INTERNATIONAL TRADE BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN IS FACING GROWING PRESSURE TO ELIMINATE ITS BAN ON RICE IMPORTS IN LINE WITH CONCESSIONS THAT JAPAN AND SOUTH KOREA HAVE SAID THEY WILL MAKE BUT THE RICE ISSUE CARRIES IMPLICATIONS FOR TAIWAN THAT GO BEYOND THE DOMESTIC POLITICAL REPERCUSSIONS THAT INEVITABLY WILL COME FROM ALLOWING FOREIGN RICE INTO ITS MARKET AS A COUNTRY SEEKING TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE ITS WILLINGNESS TO AGREE TO CONCESSIONS MADE BY JAPAN AND SOUTH KOREA WILL INFLUENCE ITS APPLICATION TO ENTER THE ORGANIZATION AS A RESULT THE DEBATE IN TAIWAN IS PITTING PROPONENTS OF TWO NATIONAL INTERESTS AGAINST ONE ANOTHER POLICY MAKERS WHO WANT TO PROTECT THE COUNTRY'S RICE FARMERS VS THOSE SEEKING TO BROADEN TAIWAN'S INVOLVEMENT IN THE INTERNATIONAL COMMUNITY AGRICULTURE FROM EARLY ON HAS BEEN THE DRIVING FORCE OF OUR ECONOMIC DEVELOPMENT AND FARMING VILLAGES HAVE BEEN A SOURCE OF STABILITY FOR OUR SOCIETY SAID THE MASSCIRCULATION CHINA TIMES IN AN EDITORIAL THIS WEEK BUT THEIR VALUE IN MATERIAL AND SPIRITUAL TERMS MUST ADAPT TO NEW REALITIES MEANWHILE GOVERNMENT OFFICIALS WHO REPRESENT THE INTERESTS OF TAIWAN'S AGRICULTURAL SECTOR STEADILY HAVE SOFTENED THEIR OPPOSITION TO RICE IMPORTS FOR EXAMPLE SUN MINGHSIEN CHAIRMAN OF TAIWAN'S CABINETLEVEL COUNCIL OF AGRICULTURE HAS GONE FROM ASSERTING THAT TAIWAN ABSOLUTELY WON'T OPEN ITS MARKETS TO ANNOUNCING THAT LIMITED IMPORTS SHOULDN'T BE CONSIDERED AN OPENING ON MONDAY MR SUN SAID THAT WHATEVER ADJUSTMENTS ARE MADE THE INTERESTS OF FARMERS MUST BE OUR PRIMARY CONSIDERATION THAT STATEMENT IS REGARDED WIDELY AS A CAPITULATION ON THE ISSUE UNLIKE JAPAN AND SOUTH KOREA WHERE RICE IMPORTS HAVE BEEN A POLITICALLY SENSITIVE ISSUE FOR YEARS THE MATTER SCARCELY HAS BEEN ON TAIWAN'S PUBLIC AGENDA UNTIL RECENTLY WHEN THE PROSPECT OF A BREAKTHROUGH IN THE GATT TALKS EMERGED FOR TAIWAN WHICH HAS BEEN AN OUTSIDER TO THE URUGUAY ROUND PROCESS THAT CHANGE HAS REQUIRED RAPID ADJUSTMENT TAIWAN MAINTAINS A WIDE RANGE OF TARIFF AND NONTARIFF BARRIERS TO IMPORTS AND ITS APPLICATION TO JOIN GATT WILL BE CONTINGENT UPON MEETING THE NEW STANDARDS TAIWAN HAS HAD A FREE RIDE FOR A LONG TIME SAYS A WESTERN DIPLOMAT THEY'VE HAD EASY ACCESS TO WESTERN MARKETS AND THEY REALIZE NOW THAT IF THEY ARE GOING TO CONTINUE TO BENEFIT FROM THE WORLD TRADING SYSTEM THEY ARE GOING TO HAVE TO MAKE CHANGES TO THEIR ECONOMY WHICH WILL AFFECT LARGE GROUPS AND FARMING GROUPS IN PARTICULAR 9312100163 931210 BUSINESS BRIEF NORTH WEST WATER GROUP PLC PRETAX PROFIT INCREASED 57 FOR FISCAL SIXMONTH PERIOD BRITAIN'S NORTH WEST WATER GROUP PLC SAID PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 ROSE 57 BASED ON STRENGTH AT ITS CORE UTILITY OPERATIONS THE PRETAX PROFIT ADVANCE TO 1382 MILLION FROM 1307 MILLION WAS ROUGHLY IN LINE WITH MARKET FORECASTS FOR A FIGURE IN THE AREA OF 140 MILLION THE DIVIDEND INCREASE TO 767 PENCE A SHARE FROM 713 PENCE ALSO WAS CLOSE TO EXPECTATIONS NORTH WEST WATER SAID SIR PETER MIDDLETON WILL BECOME A NONEXECUTIVE DIRECTOR ON JAN 1 HE IS DEPUTY CHAIRMAN OF BARCLAYS BANK PLC AND CHAIRMAN OF ITS BZW BROKERAGE AND TRADING ARM THE COMPANY ALSO ANNOUNCED THAT IT SIGNED A CONCESSION AGREEMENT FOR THE PRIVATIZATION OF MALAYSIA'S WASTEWATERWAY SYSTEM THE 28YEAR PROJECT TO UPGRADE EXTEND AND OPERATE THE SYSTEM IS EXPECTED TO GENERATE REVENUE OF ABOUT 6 BILLION OVER ITS FULL LIFE 9312100162 931210 INTERNATIONAL BRAZIL'S PRESIDENT ORDERS SUSPENSION OF PHONE SWITCHINGEQUIPMENT BIDDING BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO PRESIDENT ITAMAR FRANCO ORDERED THE SUSPENSION OF BRAZIL'S BIGGESTEVER TENDER OFFER FOR TELEPHONE SWITCHING EQUIPMENT RAISING FRESH QUESTIONS ABOUT THE COUNTRY'S WILLINGNESS TO OPEN UP ITS TELECOMMUNICATIONS MARKET MR FRANCO ASKED STATECONTROLLED TELECOMUNICACOES BRASILEIRAS OR TELEBRAS TO PUT OFF INDEFINITELY THE BIDDING PROCESS FOR 720000 TELEPHONE LINES CLAIMING THE GOVERNMENT NEEDS MORE TIME TO EXAMINE THE BIDS' IMPACT ON THE INDUSTRY THE TENDER OFFER PRECIPITATED A MAJOR BATTLE PITTING THE LOCAL UNITS OF FOUR MULTINATIONAL COMPANIES JAPAN'S NEC CORP GERMANY'S SIEMENS AG SWEDEN'S TELEFON AB LM ERICSSON AND FRANCE'S ALCATELALSTHOM SA AGAINST AMERICAN TELEPHONE & TELEGRAPH CO AT&T HAS RAISED HACKLES BECAUSE IT WANTS TO SUPPLY THE BRAZILIAN MARKET THROUGH THE INDUSTRIAL ZONE OF MANAUS IN THE AMAZON WHICH OFFERS A RANGE OF INCENTIVES TO ATTRACT INDUSTRIES THE OTHER COMPANIES LED BY NEC CLAIM THEY HAVE MADE BIG INVESTMENTS IN BRAZIL BUT DON'T HAVE A LEVEL PLAYING FIELD WITH AT&T WHICH WOULD ENJOY TAX BREAKS AND IMPORT INCENTIVES THAT WOULD UNDERCUT THEIR LOCAL PRICES BEHIND THIS BATTLE INDUSTRY ANALYSTS SAY ARE STAKES MUCH LARGER THAN A MERE CONTRACT ESTIMATED AT ABOUT 140 MILLION TO SUPPLY TELEBRAS WITH SWITCHING EQUIPMENT WITH A POPULATION OF 150 MILLION PEOPLE BUT ONLY 65 TELEPHONES PER 100 INHABITANTS BRAZIL'S TELECOMMUNICATIONS MARKET IS AFTER CHINA THE BIGGEST POTENTIAL MARKET IN THE WORLD WITH UNFULFILLED DEMAND OF UP TO 20 MILLION LINES SAYS ETHEVALDO SIQUEIRA PUBLISHER OF A TELECOMMUNICATIONS TRADE PUBLICATION TO ACHIEVE THIS POTENTIAL TELEBRAS WOULD HAVE TO INVEST AT LEAST TWICE ITS ANNUAL AVERAGE OF 3 BILLION AT A TIME WHEN BRAZIL IS PLANNING A CONSTITUTIONAL REVISION THAT COULD LEAD TO LIFTING TELEBRAS'S VIRTUAL MONOPOLY THIS TENDER OFFER IS SEEN AS A TEST OF THE GOVERNMENT'S DETERMINATION TO ALLOW GREATER COMPETITION BY SUSPENDING THE BIDDING PROCESS ANALYSTS SAY IT'S GIVING THE APPEARANCE OF BUCKLING UNDER PRESSURE FROM ENTRENCHED INTERESTS THOUGH THE COMPANIES INVOLVED DENY THEY WANT ANYTHING OTHER THAN FAIR COMPETITION IT SHOWS THE PROTECTIONISTS ARE WINNING THE FIRST ROUND SAYS MR SIQUEIRA THOUGH THAT COULD BE REVERTED DURING DISCUSSIONS ON THE MONOPOLY AT&T SAYS THE TAX INCENTIVES IT RECEIVES FOR PRODUCING IN MANAUS ARE PERFECTLY LEGAL AND OTHER BIDDERS SHOULDN'T BE ABLE TO MAKE AN ISSUE OUT OF IT IT'S NOT FOR OUR COMPETITORS TO TELL US WHERE TO MANUFACTURE TO SATISFY THEIR REQUIREMENTS SAYS ANTONIO CARLOS DO REGO GIL PRESIDENT OF AT&T NETWORK SYSTEMS DO BRASIL THE JOINT VENTURE AT&T FORMED WITH BRAZIL'S SID TELECON WHATEVER BENEFIT WE GET AND IT'S NOT GREAT WILL BE PASSED ON TO THE CONSUMER BUT NEC'S LOCAL UNIT CLAIMS THAT THE TAX BREAKS ARE SUCH THAT ALLOWING AT&T TO BID UNDER EXISTING RULES LEAVES NEC AND OTHER COMPANIES WITH TWO OPTIONS CLOSE DOWN OR MOVE TO MANAUS GILBERTO GERALDO GARBI PRESIDENT OF NEC DO BRASIL FILED A SERIES OF LEGAL COMPLAINTS AND ISSUED ANGRY COMMUNIQUES ON THE SUBJECT WE'LL FIGHT TO THE END TO AVOID UNFAIR COMPETITION HE SAYS WHILE LESS VEHEMENT OTHER COMPANIES AGREE CARLOS DE PAIVA LOPES PRESIDENT OF ERICSSON DO BRASIL SAYS THE INCENTIVES MANAUS OFFERS ARE BIGGER THAN OUR PROFIT MARGINS BUT MOVING TO MANAUS IS COMPLICATED HE SAYS BECAUSE A PLANT ISN'T A STALL THAT YOU MOUNT AND DISMOUNT THE BALL IS NOW IN THE GOVERNMENT'S CAMP ANALYSTS BELIEVE THE SUSPENSION IS A PRELUDE TO CANCELING THE BIDS PENDING THE ADOPTION OF NEW PUBLIC PROCUREMENT REGULATIONS THESE WOULD LIKELY CLOSE THE LOOPHOLE THROUGH WHICH AT&T IS COMPETING 9312100161 931210 BUSINESS BRIEF ROWE FURNITURE CORP COMPANY SHARPLY INCREASES FORECAST FOR ITS 4TH QUARTER ROWE FURNITURE CORP ENJOYING RECORD ORDERS FOR NOVEMBER AND SIGNIFICANT PRODUCTIVITY GAINS SUBSTANTIALLY BOOSTED ITS FISCAL FOURTHQUARTER EARNINGS ESTIMATE IN AN INTERVIEW GERALD M BIRNBACH CHAIRMAN AND PRESIDENT SAID THE ARLINGTON VA MAKER OF UPHOLSTERED FURNITURE NOW EXPECTS TO REPORT EARNINGS THAT WILL EQUAL OR EXCEED 35 CENTS A SHARE OR MORE THAN 21 MILLION LAST MONTH THE COMPANY PROJECTED PERSHARE EARNINGS FOR THE QUARTER ENDED NOV 30 WOULD RISE TO 26 CENTS A SHARE OR ABOUT 16 MILLION FROM THE 19 CENTS A SHARE OR 11 MILLION A YEAR EARLIER YEAREARLIER PERSHARE NUMBERS WERE RESTATED TO REFLECT TWO 3FOR2 STOCK SPLITS MR BIRNBACH SAID SALES ROSE 29 TO ABOUT 268 MILLION FROM 207 MILLION A MONTH AGO THE COMPANY PROJECTED SALES OF 25 MILLION MR BIRNBACH CREDITED STRONGER THAN USUAL SHIPMENTS IN THE PAST THREE WEEKS FOR THE ROSIER OUTLOOK ANOTHER FACTOR IS GREATER EFFICIENCY IN FILLING ORDERS 9312100160 931210 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS LIKE ALMOST EVERYONE ELSE IN HOLLYWOOD ENTERTAINMENT LAWYERS JUST WANT TO BE PLAYERS BUT CHANGES IN CALIFORNIA'S LEGALETHICS RULES ARE IMPEDING LAWYERS WHO TRY TO CLINCH LUCRATIVE DEALS BY ADVISING CLIENTS ON BOTH SIDES OF A TRANSACTION AND SOME MIDLEVEL INDUSTRY CLIENTS WHO WERE PINCHED BY HOLLYWOOD COSTCUTTING HAVE BECOME EMBOLDENED TO SUE THE CASES HAVE LED TO SOME LARGE SETTLEMENTS AND THE LA LAWYERS ARE TAKING NOTICE EVERYBODY'S BEING A LOT MORE CAUTIOUS ABOUT CONFLICTS OF INTEREST SAYS MICHAEL ADLER A PARTNER AT THE LOS ANGELES LAW FIRM MITCHELL SILBERBERG & KNUPP AT ISSUE IS THE HOLLYWOOD PRACTICE OF ADVISING BOTH A PRODUCTION COMPANY AND AN ACTOR OR BOTH A RECORD COMPANY AND A SONGWRITER THAT'S FINE FOR TALENT AGENTS WHO AREN'T BOUND BY FORMAL ETHICS GUIDELINES BUT IT CAN BE WRONG FOR LAWYERS WHO ARE OBLIGATED TO PROVIDE WRITTEN DISCLOSURE OF POTENTIAL CONFLICTS AND IN SOME CASES ALSO TO OBTAIN CLIENTS' WRITTEN CONSENT A VOCAL MINORITY OF LAWYERS AND ACADEMICS SAY THAT EVEN DISCLOSURE AND CONSENT AREN'T ALWAYS ENOUGH AND THE MOST INSIDIOUS CONFLICTS SHOULD BE AVOIDED SUITS ALLEGING CONFLICTS HAVE TARGETED SOME OF HOLLYWOOD'S TOP GUNS THE ELITE ENTERTAINMENT BOUTIQUE ZIFFREN BRITTENHAM & BRANCA FOR EXAMPLE RECENTLY SETTLED A 1991 LAWSUIT BY A TELEVISION PRODUCER WHO ALLEGED THAT LAWYERS AT THE LOS ANGELES FIRM NEVER TOLD HIM THEY WERE COUNSELING COLUMBIA PICTURES ON VARIOUS MATTERS WHILE ADVISING HIM TO ENTER A TV DEAL WITH THE STUDIO THE DEAL SOURED AND THE PRODUCER PHILIP DEGUERE SAYS THE FIRM'S CONFLICTING LOYALTIES LED IT TO SACRIFICE HIS INTERESTS IN ITS PLEADINGS THE FIRM BLAMED MR DEGUERE FOR THE FAILURE OF HIS NEVERAIRED SERIES BUT LAST OCTOBER THE ZIFFREN FIRM PAID HIM AN UNDISCLOSED SUM SAID BY PEOPLE FAMILIAR WITH THE TERMS TO BE 800000 COLUMBIA KICKED IN ANOTHER 300000 THEY SAID SOON AFTER A SETTLEMENT WAS REACHED IN A CONFLICTOFINTEREST SUIT BY SINGER BILLY JOEL AGAINST THE NEW YORK LAW FIRM GRUBMAN INDURSKY SCHINDLER & GOLDSTEIN WHICH HAS LONGTIME TIES TO RECORD COMPANIES TERMS WEREN'T DISCLOSED LAST YEAR MITCHELL SILBERBERG QUIETLY SETTLED A 1989 SUIT BY THE BEACH BOYS' BRIAN WILSON WHO CLAIMED A CONTRACT TO SELL HIS SONGS WAS TAINTED BECAUSE HE WASN'T TOLD THAT THE RECORD COMPANY THAT BOUGHT THEM ALSO WAS A CLIENT OF THE FIRM MEANWHILE THE ZIFFREN FIRM IS FACING A PRICKLY SUIT BY A FORMER PARTNER WHO CLAIMS THAT HE WAS FIRED AFTER REFUSING TO WORK ON A DEAL THAT INVOLVED MULTIPLE CLIENTS OF THE FIRM BECAUSE OF THE POTENTIAL CONFLICTS A REVIEW OF FILES IN THE LOS ANGELES SUPERIOR COURT REVEALS AT LEAST A DOZEN CONFLICTOFINTEREST SUITS AGAINST LAW FIRMS INVOLVING ENTERTAINMENT PROJECTS BUT PEOPLE IN THE INDUSTRY SAY THAT BEHIND THE SCENES MANY MORE CONFLICTOFINTEREST CHALLENGES ARE BEING BROUGHT AND QUIETLY SETTLED BEFORE A SUIT IS EVER FILED SEVERAL YEARS AGO SUCH LAWSUITS MUCH LESS MEGABUCK SETTLEMENTS WERE UNHEARD OF WHEN I TAUGHT A COURSE ON LEGAL ETHICS AND ENTERTAINMENT I WAS TOLD JUST TO ANNOUNCE MY TOPIC AND SIT DOWN BECAUSE IT WAS AN OXYMORON SAYS LEONARD MARKS OF NEW YORK MR JOEL'S ATTORNEY BUT FRUSTRATED WRITERS ACTORS AND INDIVIDUAL PRODUCERS ARE ABLE TO TAKE ADVANTAGE OF LEGALETHICS RULES THAT HAVE BECOME MORE SPECIFIC IN RECENT YEARS CALIFORNIA ONCE REQUIRED THAT ATTORNEYS OBTAIN WRITTEN CONSENT WHENEVER THERE WERE CONFLICTING INTERESTS THE RULE WAS SO VAGUE THAT IT SEEMED IMPOSSIBLE TO TAKE SERIOUSLY IN HOLLYWOOD WHERE JUST ABOUT EVERYONE WHO DOES BREAKFAST AT THE POLO LOUNGE INCLUDING THE LAWYERS HAS A PERSONAL OR BUSINESS RELATIONSHIP WITH EVERYONE ELSE BUT THE RULE WAS CHANGED IN 1992 TO APPLY EXPLICITLY TO INFORMAL AND EVEN PREVIOUS RELATIONSHIPS THAT SOMETIMES MAKES IT TOUGH ON LAWYERS WHO SEEK TO BROKER DEALS WITHIN THE INFAMOUSLY INBRED INDUSTRY TOP PARTNER KENNETH ZIFFREN WHO CALLS THE SUITS AGAINST HIS FIRM GROUNDLESS SAYS THAT THE ETHICS RULES ARE IN FLUX AND ADVANCING AND WE KEEP UP WITH THEM WE TAKE VERY SERIOUSLY OUR PROFESSIONAL RESPONSIBILITIES AND GO BEYOND WHAT'S NORMALLY REQUIRED AND TRY TO HAVE CLIENTS INFORMED AND GET THEIR INFORMED CONSENT WHEN IT'S DESIRABLE AND CERTAINLY WHEN IT'S NECESSARY MR DEGUERE'S LAWYER JOSEPH YANNY COUNTERS THAT THE SUBTLETIES AREN'T THE ISSUE EVERY CLIENT HAS A RIGHT TO KNOW ABOUT EVERYTHING THAT MIGHT IMPAIR THE LAWYER'S DUTY OF LOYALTY WHEN A LAWYER IS DEPENDENT ON A LONGTERM RELATIONSHIP WITH A BIG COMPANY HE SAYS INDIVIDUAL CLIENTS LOSE OUT MANY IN THE INDUSTRY ARE QUICK TO DEFEND THE ZIFFREN FIRM WHICH REPRESENTS MOVIE MOGULS TELEVISION PRODUCERS AND STARS SUCH AS HARRISON FORD AND MELANIE GRIFFITH LIONEL SOBEL A PROFESSOR AT LOYOLA LAW SCHOOL SAYS CLIENTS COME TO THE FIRM WITH THEIR EYES OPEN PRECISELY BECAUSE OF ITS STATURE AND INDUSTRY CONNECTIONS IN THE MINDS OF THESE PEOPLE HE SAYS POTENTIAL CONFLICTS BECOME POTENTIAL CONTACTS WHILE OTHER LAWYERS IN HOLLYWOOD MIGHT TAKE THEIR CASES THEY DON'T CHOOSE TO GO TO LAWYERS WHO ARE UNCONFLICTED BECAUSE THEY DON'T GET THE BENEFIT OF KNOWING THEIR PHONE CALLS WILL BE INSTANTLY RETURNED OTHER SUGGEST THAT ENTERTAINMENT LAWYERS HAVE GOTTEN THE MESSAGE AND ARE AVOIDING DEALS IN WHICH THEY MIGHT DEVELOP CONFLICTS OWEN SLOANE OF SANTA MONICA CALIF SAYS HE RECENTLY TURNED DOWN A CHANCE TO HELP STRUCTURE A DEAL BETWEEN A ROCK BAND AND A RECORD PRODUCER BOTH LONGTIME CLIENTS THERE WERE SO MANY ADVERSE ISSUES THAT IT WOULD HAVE BEEN IMPOSSIBLE TO ADVISE EITHER ONE PROPERLY HE SAYS IF A LAWYER IS SITTING IN THE MIDDLE MR SLOANE SAYS YOU'RE GOING TO END UP WITH HIS VIEW OF WHAT THE DEAL SHOULD BE RATHER THAN WHAT THE CLIENT WANTS AND NEEDS THE DEAL TO BE 9312100159 931210 BUSINESS BRIEF DR HORTON INC SALES CONTRACTS INCREASED 98 DURING OCTOBER NOVEMBER DR HORTON INC ARLINGTON TEXAS SAID SALES CONTRACTS SIGNED DURING OCTOBER AND NOVEMBER ROSE 98 TO 555 MILLION OR 333 HOMES FROM 281 MILLION OR 166 HOMES A YEAR EARLIER THE HOMEBUILDING CONCERN SAID ITS BACKLOG OF HOMES UNDER CONTRACT ON NOV 30 ROSE 82 TO A RECORD 1350 MILLION OR 781 HOMES FROM 743 MILLION OR 423 HOMES A YEAR EARLIER WHILE BAD WEATHER AND DEVELOPMENT DELAYS POSTPONED SOME FIRSTQUARTER CLOSINGS THE COMPANY IS CONFIDENT WE CAN EXCEED ANALYST EXPECTATIONS FOR THE 1994 FISCAL YEAR SAID DONALD R HORTON CHAIRMAN AND PRESIDENT ANALYSTS PROJECT EARNINGS OF ABOUT 106 A SHARE FOR THE NINE MONTHS ENDED SEPT 30 THE COMPANY REPORTED EARNINGS OF 56 CENTS A SHARE THE COMPANY CHANGED ITS FISCAL YEAR END TO SEPT 30 FROM DEC 31 SO THE 1993 FISCAL YEAR REPRESENTS ONLY NINE MONTHS OF OPERATION 9312100158 931210 CHINA A SPECIAL REPORT BUSINESS PLAN THE EXTENT OF THE LAW BY KATHY CHEN HONG KONG IF YOU'RE THE KIND OF BUSINESSPERSON WHO CALLS A LAWYER IN TIMES OF TROUBLE AND WHO EXPECTS PARTNERS TO ADHERE TO CONTRACTS CHINA ISN'T THE PLACE FOR YOU FOR IN CHINA THE RULE OF LAW IS A TENUOUS CONCEPT CONTRACTS ONE ASIAN CAR MAKER SAYS IT THOUGHT IT HAD ONE ITS CHINESE PARTNER A STATERUN FACTORY WAS OBLIGATED TO PROVIDE LAND FUNDS AND WORKERS FOR THEIR JOINT VENTURE BUT FAILED TO DELIVER THEY PROTESTED THAT WE COULDN'T TAKE AWAY ALL THEIR GOOD PEOPLE SAYS AN EXECUTIVE WITH THE CAR MAKER OUR CONTRACT WAS WRITTEN UP VERY CAREFULLY AND VERY WELL THE EXECUTIVE GRUMBLES BUT IT'S A PIECE OF WASTEPAPER AS FAR AS DOING BUSINESS IN CHINA IS CONCERNED SO HOW CAN A FOREIGN BUSINESS PROTECT ITSELF FOR ONE THING SAYS ANTHONY YUEN EXECUTIVE DIRECTOR OF HENDERSON CHINA INVESTMENT CO A HONG KONG COMPANY WITH PROPERTY HOLDINGS IN CHINA DON'T START WITH A LAWYER YOU OFFEND THE OTHER PARTY HE EXPLAINS BECAUSE IT SEEMS LIKE YOU DON'T TRUST THEM IT'S IMPORTANT TO CONSULT LAWYERS BUT ONLY AT THE END OF NEGOTIATIONS TO LOOK OVER THE CONTRACT CHINA HAS ABOUT 50000 LAWYERS THE US BY COMPARISON HAS ROUGHLY 800000 IN THE EARLY STAGES TRY INSTEAD TO DEVELOP A PERSONAL RELATIONSHIP WITH YOUR JOINTVENTURE PARTNER DINNERS AND BANQUETS CAN BE EFFECTIVE WAYS TO GET TO KNOW YOUR COUNTERPARTS SIMPLE GESTURES SUCH AS GIVING YOUR CHINESE PARTNER A RIDE HOME AFTER A HARD DAY OF BARGAINING ALSO CAN BUILD BONDS THE ENDGAME THOUGH REMAINS GETTING A CONTRACT EVEN IF THE DOCUMENT IS HARD TO ENFORCE IN CHINA ONE THING TO REMEMBER WHENEVER THERE'S A CHANGE MADE IN THE CONTRACT PUT IT IN WRITING ON THE SPOT SO THERE'S NO MISUNDERSTANDING LATER IF A DISPUTE ARISES AND YOUR FRIENDLY RELATIONSHIP PROVES TO BE OF NO HELP THERE IS LEGAL RECOURSE IN CHINA AN INCREASINGLY POPULAR AVENUE IS ARBITRATION THROUGH THE CHINA INTERNATIONAL ECONOMIC AND TRADE ARBITRATION COMMISSION THE COMMISSION NOW HEARS ROUGHLY 300 CASES A YEAR THE TWO SIDES TO A DISPUTE HELP PICK THE PANEL THAT WILL HEAR THE CASE AND FOREIGNERS ARE PERMITTED TO SIT ON THESE PANELS THIS ALTERNATIVE OFTEN BEATS TAKING THE CASE INTO THE CHINESE LEGAL SYSTEM WHERE IT'S HEARD BY A CHINESE JUDGE ARBITRATION IS SLOW AND THE LOSING PARTY MAY STILL DECIDE TO IGNORE THE RULING BUT SOMETIMES IT WORKS IN ONE RECENT CASE A CHINESE FOOD COMPANY PAID DAMAGES AFTER AN ARBITRATION PANEL DECIDED IT HAD FAILED TO LIVE UP TO ITS AGREEMENT WITH A FOREIGN BUSINESS THE CHINESE COMPANY EVEN ASKED THE FOREIGN COMPANY TO CONSIDER ANOTHER DEAL TOGETHER CHINESE BUSINESS LAWS THOUGH ABUNDANT ARE NO MATCH FOR THE COUNTRY'S RAPIDLY CHANGING ECONOMY THUS BEIJING PLANS TO ADD MORE LAWS IN PROBLEM AREAS COMING SOON NEW RULES ON UNFAIR COMPETITION HOLDINGCOMPANY STRUCTURES AND CONTRACTS BETWEEN JOINT VENTURES AND OTHER CHINESE COMPANIES 9312100157 931210 CREDIT RATING LONG ISLAND LIGHTING CO HICKSVILLE NY STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON LONG ISLAND LIGHTING CO'S SENIOR DEBT AND PREFERRED STOCK AFFECTING ABOUT 63 BILLION OF DEBT AND PREFERRED STOCK S&P SAID IT DOWNGRADED LILCO'S SENIOR SECURED DEBT TO TRIPLEBMINUS FROM TRIPLEB AND SENIOR UNSECURED DEBT TO DOUBLEBPLUS FROM TRIPLEBMINUS THE RATINGS SERVICES SAID THE DOWNGRADES REFLECT ITS EXPECTATIONS THAT LILCO'S PRESENTLY SUBPAR FINANCIAL PROFILE WILL NOT STRENGTHEN DUE TO REDUCED RATE RELIEF FLAT SALES GROWTH AND THE INADEQUACY OF DEBTREDUCTION MEASURES A SPOKESWOMAN FOR THE GAS AND ELECTRIC UTILITY COMPANY SAID THE DECISION WAS NOT SURPRISING BECAUSE OF S&P'S NEW STIFFER STANDARDS FOR UTILITY COMPANIES WE'RE RIGHT WHERE WE EXPECT TO BE AS WE CONTINUE TO RETURN SLOWLY TO FINANCIAL HEALTH SHE SAID LILCO'S SHARES CLOSED AT 2375 A SHARE DOWN 1 IN LATE NEW YORK STOCK EXCHANGE TRADING 9312100156 931210 ECONOMY IS SEEN GROWING AT 38 RATE FOR QUARTER WASHINGTON THE ECONOMISTS SURVEYED MONTHLY BY THE BLUE CHIP ECONOMIC INDICATORS EXPECT THE ECONOMY TO GROW AT A 38 ANNUAL RATE IN THE CURRENT QUARTER BUT TO SLOW TO A 28 PACE IN THE FIRST QUARTER A MONTH AGO THE BLUE CHIP FORECASTERS WERE PROJECTING GROWTH RATES OF 33 FOR THE FOURTH QUARTER AND 28 FOR THE FIRST QUARTER THE SEDONA ARIZ NEWSLETTER SAID THAT 28 OF THE 51 ECONOMISTS IT SURVEYED HAVE BECOME MORE OPTIMISTIC ABOUT NEXT YEAR'S GROWTH PRIMARILY BECAUSE OF THE RECENT SHARP DROP IN UNEMPLOYMENT THE CONTINUED STRENGTH IN HOUSING CONSTRUCTION AND THE PRODUCTION OF DURABLE GOODS SUCH AS AUTOS AND THE SURGE IN BUSINESSINVESTMENT SPENDING THE AVERAGE FORECAST SHOWS THE ECONOMY GROWING BY 23 BETWEEN THE FOURTH QUARTERS OF 1992 AND 1993 AND BY 27 OVER THE NEXT FOUR QUARTERS DESPITE THE SLIGHTLY MOREOPTIMISTIC GROWTH OUTLOOK THE FORECASTS' INFLATION PROJECTIONS ARE FALLING SLIGHTLY THE AVERAGE FORECAST HAS CONSUMER PRICES CLIMBING 29 IN 1994 1/10TH OF A PERCENTAGE POINT BELOW THE PROJECTION MADE A MONTH EARLIER 9312100155 931210 CHINA A SPECIAL REPORT BUSINESS PLAN CHANGE FOR A DOLLAR BY JULIA LEUNG YOUR BUSINESS IN CHINA IS FLOWERING NOW YOU WANT TO START BRINGING YOUR PROFITS BACK HOME GOOD LUCK CHINA HAS AN OFFICIAL FIXED EXCHANGE RATE FOR ITS CURRENCY NOW SET AT 577 YUAN TO THE US DOLLAR THE PROBLEM HOWEVER IS THAT WHILE THE GOVERNMENT THROUGH THE BANK OF CHINA WILL BUY DOLLARS AT THAT RATE IT WON'T EXCHANGE YUAN FOR DOLLARS IN ANY GREAT VOLUME TO HANDLE THE LARGER TRANSACTIONS CHINA HAS SET UP A SEPARATE SYSTEM OF 100 OR SO SWAP CENTERS WHERE YOU CAN BUY DOLLARS WITH YOUR YUAN AT MARKET RATES BUT BE PREPARED FOR LOTS OF VOLATILITY IN THE SWAP MARKET A SURGE IN IMPORTS EARLIER THIS YEAR SENT EVERYONE SCAMPERING AFTER US CURRENCY TO PAY FOR THE PRODUCTS THE SHORTAGE OF GREENBACKS WAS SO BAD THAT THE EXCHANGE RATE PLUMMETED TO 11 YUAN TO THE DOLLAR NEARLY A 50 DISCOUNT COMPARED WITH THE OFFICIAL RATE BEIJING MADE MATTERS WORSE WITH SOME OLDFASHIONED GOVERNMENT INTERVENTION FEARFUL OF A FURTHER DEPRECIATION OF THE YUAN IT SET CAPS ON SWAP RATES NOT SURPRISINGLY THE CURRENCY TRADING SIMPLY SHIFTED TO THE BLACK MARKET JOINT VENTURES DISPATCHED EMPLOYEES WITH STACKS OF YUAN AND PORTABLE PHONES TO CITIES ACROSS CHINA IN SEARCH OF BLACKMARKET CURRENCY DEALS LATELY THE GOVERNMENT HAS BEEN REINING IN CREDIT WHICH HAS FORCED CHINESE COMPANIES TO SELL THEIR STOCKPILES OF DOLLARS IN ORDER TO BUY THE YUAN NEEDED TO RUN THEIR BUSINESSES THE SWAP RATE HAS RISEN TO A LITTLE MORE THAN 8 YUAN TO THE DOLLAR BEIJING HAS ALSO LATELY RESTRICTED THE ACCESS OF SOME FOREIGN ENTERPRISES TO THE SWAP MARKET BUYING RAW MATERIALS LOCALLY IS OF COURSE ONE WAY TO REDUCE THE NEED FOR FOREIGN CURRENCY ANOTHER WAY TO AVOID THE TURMOIL OF CHINA'S CURRENCY MARKETS IS TO FOLLOW THE PROCTER & GAMBLE CO MODEL P&G OPERATES A SHAMPOO JOINT VENTURE IN GUANGZHOU THAT EXPORTS ROUGHLY 30 OF ITS PRODUCTS HARD CURRENCY EARNED FROM THOSE EXPORTS ISN'T ENOUGH TO SATISFY THE VENTURE'S REQUIREMENTS THE SHORTFALL IS MADE UP BY EXPORT SALES OF CHEMICALS AND TOWELS FROM CHINA BY HUTCHISON WHAMPOA LTD A HONG KONG COMPANY THAT HAS A STAKE IN P&G'S SHAMPOO FACTORY IN CHINA SAYS GEORGE BAEDER MANAGING DIRECTOR OF PACIFIC RIM CONSULTING GROUP LOOK FOR A PARTNER WHO CAN BRING TO THE TABLE THE ABILITY TO BALANCE FOREIGN EXCHANGE 9312100154 931210 VIAG BAYERNWERK PLAN VENTURE MUNICH GERMANY BAYERNWERK AG A MUNICH UTILITY AND VIAG AG A DIVERSIFIED GERMAN INDUSTRIAL COMPANY SAID THEY ARE FORMING A JOINT TELECOMMUNICATIONS SUBSIDIARY THE UNIT WILL BE BASED IN MUNICH AND INITIALLY BE RESPONSIBLE FOR DEVELOPING ESTABLISHING AND RUNNING TELEPHONE AND DATACOMMUNICATION LINES FOR THE PARENT COMPANIES IT COULD EVENTUALLY OFFER ITS SERVICES TO OUTSIDE BUSINESSES THE TWO COMPANIES SAID VIAG ONE OF THE 30 COMPANIES MAKING UP THE DAX STOCKMARKET INDEX OF GERMAN BLUECHIPS AND BAYERNWERK AN UNLISTED COMPANY PLAN TO MERGE NEXT YEAR 9312100153 931210 CORPORATE INSOLVENCY IN GERMANY FRANKFURT CORPORATE INSOLVENCIES IN WESTERN GERMANY SURGED 30 TO 9284 IN THE FIRST NINE MONTHS OF THE YEAR THE FEDERAL STATISTICS OFFICE REPORTED THURSDAY IN SEPTEMBER WESTERN GERMAN CONCERNS REPORTED A 38 INCREASE IN COMPANY BANKRUPTCIES OVER SEPTEMBER 1992 THE AGENCY SAID INSOLVENCIES WHICH FELL EVERY YEAR FROM 198691 BEGAN TO RISE IN 1992 THE PACE OF NEW INSOLVENCIES INCREASED THIS YEAR THE AGENCY SAID TOTAL GERMAN INSOLVENCIES IN EASTERN AND WESTERN GERMANY FOR BOTH COMPANIES AND INDIVIDUALS WILL EXCEED 20000 IN 1993 THE AGENCY PREDICTED 9312100151 931201 REVIEW & OUTLOOK EDITORIAL TRIAL BY ACCUSATION WHEN THE STORY BROKE THAT A 34YEAROLD MAN HAD ACCUSED CHICAGO'S JOSEPH CARDINAL BERNARDIN OF HAVING MOLESTED HIM WHEN HE WAS A TEENAGER LOCAL TELEVISION BROUGHT WORD IN ITS INIMITABLE FASHION CARDINAL SIN WAS THE PANTING QUESTION THAT SPLASHED ACROSS THE SCREEN OF THE LOCAL NEWS NEW YORK'S IN THIS CASE WE FIND THE BERNARDIN CASE INTRIGUING PRIMARILY BECAUSE IT SEEMS TO HAVE JARRED MANY PEOPLE INTO WONDERING IF THERE AREN'T SOME VERY SERIOUS PROBLEMS WITH THIS PARTICULAR CLASS OF NEWS STORIES AND LAWSUITS IN A TIME WHEN CERTAIN CRIMES HAVE BEEN POLITICALLY ANOINTED AND GIVEN SPECIAL WEIGHT AS RAPE AND SEXUAL MOLESTATION HAVE BEEN THE ACCUSATION ALONE IS SUFFICIENT FOR A SENSATIONAL CASE THE ACCUSATION AGAINST THE CARDINAL IS REMINISCENT OF THE MANY SENSATIONAL CHARGES OF MOLESTATION THAT HAVE APPEARED WITH ASTONISHING FREQUENCY IN RECENT YEARS WHAT STANDS OUT IN THE BERNARDIN CASE IS THE LENGTH OF TIME IT TOOK THE ACCUSER TO RECALL THE TERRIFYING MOLESTATION THAT ALLEGEDLY SCARRED HIM AND FOR WHICH HE NOW WANTS 10 MILLION IN COMPENSATION INDEED THE CRIME HE ALLEGES IS SUPPOSED TO HAVE TAKEN PLACE 17 YEARS EARLIER ITS MEMORY HAVING ONLY NOW BEEN RECOVERED THIS ISN'T TO DENY THE REALITY OF CHILD SEX ABUSE OR THE FACT THAT MANY VALID CHARGES OF SUCH ABUSE WERE MISHANDLED BY THE CHURCH HOWEVER IT IS EQUALLY IMPORTANT TO RECOGNIZE HOW FINANCIALLY REWARDING IT HAS BECOME NOWADAYS TO LEVEL CHARGES OF CHILD SEX ABUSE AND WHAT A POTENT LEGAL WEAPON SUCH ACCUSATIONS CAN BE IN CUSTODY BATTLES BETWEEN DIVORCING PARENTS THE AMERICAN BAR ASSOCIATION HAS RECENTLY TAKEN TO WORRYING OUT LOUD ABOUT THE LOW REPUTATION OF LAWYERS IT SHOULD EXAMINE THE MILLS IN WHICH INDIVIDUAL LAWYERS HANDLE HUNDREDS OF THESE ABUSE LAWSUITS THE BERNARDIN ACCUSATION DERIVES FROM AN INCREASINGLY FAMILIAR SOURCE AN ADULT NOW CLAIMING TO HAVE RECOVERED WHILE IN THERAPY THE MEMORY OF SEXUAL ABUSE DECADES OLD IN A RECENT ISSUE OF TIME MAGAZINE WHICH HAS AN INSTRUCTIVE REPORT ON THE SUBJECT ONE SOCIAL PSYCHOLOGIST OBSERVES THAT RECOVEREDMEMORY THERAPY WILL COME TO BE RECOGNIZED AS THE QUACKERY OF THE CENTURY ELIZABETH LOFTUS PROFESSOR OF PSYCHOLOGY AT THE UNIVERSITY OF WASHINGTON AND A NOTED AUTHORITY ON COGNITIVE PROCESSES SAYS OF THIS THERAPY THAT IT VIOLATES ALL THAT WE KNOW ABOUT HUMAN MEMORY THE 10 MILLION IN CLAIMS SOUGHT IN THE BERNARDIN ACCUSATION ALSO MIRRORS THE PRACTICE IN MANY OTHER CASES OF ALLEGED ABUSE AS SOON AS MOLESTATION CHARGES ARE BROUGHT LAWYERS AND PLAINTIFFS BEGIN WORKING ON PARALLEL CIVIL SUITS WITH THE EXPECTATION OF LARGE SUMS TO BE WON FROM THE INSTITUTION INVOLVED THOUGH A DEFENDANT WINS ACQUITTAL IN THE CRIMINAL CASE LAWYERS FOR THE PLAINTIFFS PRESS ON NONETHELESS WITH THEIR CIVIL SUITS FOR DAMAGES AND THEY COLLECT AS THE ATTORNEY FOR ONE NEW JERSEY TOWNSHIP RUEFULLY EXPLAINED AFTER PAYING OFF PLAINTIFFS IN JUST SUCH AN INSTANCE IT'S JUST CHEAPER THAN MEETING THE EXPENSES OF A LONG CIVIL TRIAL TO ITS CREDIT THE CATHOLIC CHURCH HAS BEGUN TO FIGHT HARD AGAINST THESE DISPROPORTIONATE DAMAGE CLAIMS CONSERVATIVELY ESTIMATED TO TOTAL 60 MILLION SO FAR THE PROFITABILITY IN SEXUAL ABUSE CASES WAS NOWHERE BETTER EVIDENT THAN IN THAT MOUNTED AGAINST DAVENPORT IOWA BISHOP GERALD F O'KEEFE ACCORDING TO AN ACCUSATION MADE PUBLIC LAST SPRING THE BISHOP HAD ALLEGEDLY MOLESTED TWO WOMEN SOME 30 YEARS EARLIER ONE OF THE WOMEN APPEARS TO HAVE BELIEVED MOREOVER THAT SHE HAD CONTACT WITH A UFO AND THAT SHE HAD ALSO BEEN ABUSED BY A SATANIC CULT WHEN THE CHARGES WERE DROPPED IN JUNE THE BISHOP ACERBICALLY WONDERED WHAT KIND OF LAWYER COULD HAVE GONE FORWARD WITH CLAIMS BY SUCH CLEARLY UNSTABLE ACCUSERS HE NOTED FURTHER THAT THE ATTORNEY WHO DID SO HAD BY HIS OWN ACCOUNT BEEN INVOLVED IN MORE THAN A HUNDRED CLERICAL ABUSE CASES TO THEIR CREDIT MOST OF THE MEDIA HAVE EXHIBITED A HEALTHY SKEPTICISM AS REGARDS THE PARTICULAR ACCUSATIONS AGAINST CARDINAL BERNARDIN IT'S ALSO TRUE HOWEVER THAT SUCH CHARGES ESPECIALLY THOSE AGAINST CHURCH OFFICIALS HAVE CAUSED A LOT OF NORMALLY SENSIBLE NEWS EDITORS TO LOSE THEIR SENSE OF PROPORTION AND FAIRNESS IT'S NOW CLEAR THAT THESE ACCUSATIONS ARE ALMOST UNIQUE IN THEIR DESTRUCTIVENESS PRIOR TO ANY FINAL RESOLUTION A DECLINE IN PUBLIC RESPECT FOR THE PRESUMPTION OF INNOCENCE IS NO MINOR MATTER A SOCIETY THAT LETS A NOTION LIKE RECOVERED MEMORY GAIN SUCH FORCE THAT IT OVERWHELMS ITS MOST BASIC JUDICIAL PRINCIPLES HAS WADED INTO DEEP AND DANGEROUS WATERS SEE RELATED LETTER LETTERS TO THE EDITOR THE MYSTICAL KINGDOM OF MEMORY WSJ DEC 10 1993 9312010099 YY93 MM12 9312100150 931210 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY MANAGING DEBT THROUGH THE AGES BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL BE CAREFUL IT'S EASY TO OVERUSE CREDIT WHEN YOU'RE JUST STARTING OUT THERE'S THAT FIRST APARTMENT TO FURNISH CLOTHES FOR YOUR FIRST REAL JOB AND THE TEMPTATION TO TREAT YOURSELF WELL NOW THAT YOU'RE FINALLY EARNING SOME MONEY BUT YOU'RE ALSO ESTABLISHING A CREDIT HISTORY WHICH MEANS THAT IT'S IMPORTANT TO PAY YOUR BILLS ON TIME FUTURE LENDERS WHEN YOU'RE APPLYING FOR A MORTGAGE A CAR LOAN OR OTHER CREDIT WILL LOOK AT YOUR PAST RECORD YOU USED TO BE ABLE TO RELY ON THE SELFINTEREST OF LENDERS TO DISCIPLINE THE PROCESS SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER NOWADAYS BECAUSE OF HIGH INTEREST RATES ON CREDIT CARDS LENDERS ARE OUT THERE SOLICITING BUSINESS A HIGH RATE OF DEFAULT IS BUILT IN MANY RECENT GRADUATES HAVE COLLEGE LOANS TO REPAY AND MAY HAVE TO BORROW TO BUY A CAR INCREASING THEIR MONTHLY OBLIGATIONS BUT JUST MAKING THE MINIMUM MONTHLY PAYMENT ON A HALFDOZEN DIFFERENT CREDIT CARDS CAN LEAVE YOU PAYING DOUBLEDIGIT INTEREST RATES FOR YEARS JOHN CAMMACK A FINANCIAL PLANNER WITH MUTUALFUND FIRM T ROWE PRICE ASSOCIATES IN BALTIMORE RECOMMENDS LIMITING YOURSELF TO JUST ONE CARD AND NEVER LETTING THE OUTSTANDING BALANCE EXCEED FOUR WEEKS' NET PAY OTHERWISE THE INSTALLMENT THING STARTS GETTING AWAY FROM YOU HE SAYS CREDITREPORTING AGENCIES KEEP DATA ON LOANS OUTSTANDING CREDIT CARDS YOU HAVE HOW MUCH CREDIT IS AVAILABLE TO YOU AND YOUR PAYMENT HISTORY THE INFORMATION IS AVAILABLE TO LENDERS RETAIL MERCHANTS AND OTHER CREDIT ISSUERS BORROWERS WITH A GOOD REPAYMENT HISTORY AND NOT A LOT OF OUTSTANDING DEBT ARE MORE LIKELY TO GET LOANS ALL THIS IS ESPECIALLY IMPORTANT WHEN YOU APPLY FOR A MORTGAGE TO BUY YOUR FIRST HOME DELINQUENCIES REMAIN ON YOUR RECORD FOR SEVEN YEARS BANKRUPTCIES FOR 10 YOU CAN GET A COPY OF YOUR CREDIT REPORT BY CONTACTING THE THREE MAJOR AGENCIES TRW INC TRANS UNION CORP AND EQUIFAX INC IT'S USUALLY A GOOD IDEA TO REVIEW THESE REPORTS EVERY COUPLE OF YEARS AND BEFORE YOU APPLY FOR A MORTGAGE OR A BIG LOAN TO MAKE SURE THERE ARE NO INACCURACIES WHEN GOING FOR THAT FIRST MORTGAGE FINANCE NO MORE THAN 80 OF THE PURCHASE PRICE IF AT ALL POSSIBLE THE INTEREST RATE IS LIKELY TO BE A LITTLE LOWER AND YOU PROBABLY WON'T HAVE TO PAY EXTRA FOR MORTGAGE INSURANCE ALSO SINCE YOU PROBABLY NEED THE CASH FLOW FOR OTHER THINGS LOWER YOUR MONTHLY PAYMENTS BY GETTING A 30YEAR LOAN FAMILY MEMBERS MAY BE WILLING TO HELP OUT WITH A LOAN FOR THE DOWN PAYMENT OR FOR OTHER PURPOSES IF YOU DO BORROW FROM MOM AND DAD OR OTHER RELATIVES TREAT IT AS A BUSINESS TRANSACTION THERE SHOULD BE A NOTE SPECIFYING AN INTEREST RATE AND A REPAYMENT SCHEDULE INTEREST SHOULD BE AT OR NEAR MARKET RATES YOU MAY WANT TO CONSULT A LAWYER TO DRAW UP THE NECESSARY DOCUMENTS SUCH BORROWING PROBABLY CAUSES MORE FAMILY DISHARMONY THAN ANYTHING ELSE SAYS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER ADDING THAT HE USUALLY COUNSELS AGAINST INTRAFAMILY LOANS THIS IS NOT A GIFT FROM MOMMY AND DADDY YOU HAVE TO PAY IT BACK JUST LIKE IF YOU BORROWED FROM A BANK OR YOU CAN JEOPARDIZE THEIR FUTURE RETIREMENT THESE USUALLY ARE YOUR PEAK EARNING YEARS A GOOD TIME TO START REDUCING YOUR DEBT BURDEN IN PREPARATION FOR RETIREMENT BUT THAT TAKES A LOT OF EFFORT BECAUSE THIS ALSO IS A TIME WHEN PEOPLE TRADE UP TO A BIGGER HOUSE AND A BETTER CAR AND SEND THEIR KIDS OFF TO COLLEGE MANY MIDDLEAGE MIDDLE MANAGERS LAID OFF BY BIG CORPORATIONS HAVE TO BORROW TO START OR EXPAND A BUSINESS THE MIDDLE YEARS OFFER MORE OPPORTUNITIES FOR CREATIVE FINANCING PEOPLE USUALLY HAVE MORE ASSETS INCLUDING SIGNIFICANT EQUITY IN A HOME AND LENDERS MAY BE MORE LIBERAL WITH BORROWERS WHO HAVE ESTABLISHED CREDIT HISTORIES THEIR HIGHER INCOME MAKES IT EASIER TO SERVICE THE DEBT BESIDES HOMEEQUITY LOANS WHICH CAN BE USED FOR JUST ABOUT ANYTHING YOU MAY BE ABLE TO BORROW FROM YOUR LIFEINSURANCE POLICY YOUR 401K OR PROFITSHARING RETIREMENT PLAN OR AGAINST THE VALUE OF SECURITIES IN YOUR INVESTMENT PORTFOLIO BUT IN SOME WAYS HAVING A LOT OF DEBT IS RISKIER NOW THAN WHEN YOU WERE IN YOUR 20S FINANCIAL PROFESSIONALS SAY THE POTENTIAL FOR SERIOUS ILLNESS IS GREATER AND MIDDLEAGE PROFESSIONALS WHO ARE LAID OFF OFTEN HAVE A HARD TIME FINDING ANOTHER JOB ALL KINDS OF CONTINGENCIES ARE MORE LIKELY TO HAPPEN SAYS WILLIAM G BRENNAN A PARTNER WITH ACCOUNTANTS ERNST & YOUNG THINK CAREFULLY BEFORE BORROWING AGAINST THE EQUITY IN YOUR HOME TO START A BUSINESS OR TO INVEST IN SOMEONE ELSE'S BUSINESS NEW BUSINESSES CAN FAIL IN A RELATIVELY SHORT TIME SAYS TIM KOCHIS A FINANCIAL PLANNER IN SAN FRANCISCO CONSIDER YOUR ABILITY TO SERVICE THAT LOAN OVER ITS TERM EVEN IF THE BUSINESS FAILS BORROWING AGAINST A LIFEINSURANCE POLICY CAN PROVIDE EASY ACCESS TO MONEY AT COMPARATIVELY LOW RATES BUT PAY IT BACK QUICKLY OR YOU'RE DIMINISHING THE VALUE OF THE POLICY FOR YOUR SURVIVORS LOANS FROM 401K OR PROFITSHARING PLANS USUALLY HAVE A MAXIMUM TERM OF FIVE YEARS AND A FIXED REPAYMENT SCHEDULE THROUGH PAYROLL DEDUCTION ALTHOUGH THERE'S NO TAX DEDUCTION YOU'RE PAYING INTEREST TO YOURSELF THE DOWNSIDE IS THAT THE AMOUNT YOU CAN BORROW IS LIMITED AND IF YOU'RE FIRED OR QUIT YOUR JOB YOU MAY HAVE TO REPAY THE LOAN QUICKLY OR FACE A TAX PENALTY EVEN FOR THOSE IN MIDDLE AGE EASY ACCESS TO CREDIT CAN LEAD TO TROUBLE STEVEN ENRIGHT A FINANCIAL PLANNER IN RIVER VALE NJ RECALLS BEING ASKED TO HELP WITH RETIREMENT PLANNING FOR AN EXECUTIVE WHO OWED ABOUT 200000 ON 23 CREDIT CARDS I TOLD HIM TO PAY OFF SOME DEBT FIRST MR ENRIGHT SAYS WHEN PAYING OFF DEBT START WITH THE MOST EXPENSIVE LOANS CREDITCARD AND OTHER CONSUMER DEBT FOR INSTANCE GENERALLY HAS THE HIGHEST INTEREST RATES AND ISN'T TAX DEDUCTIBLE SOME FINANCIAL PLANNERS RECOMMEND BUYING CARS FOR CASH OR USING TAXDEDUCTIBLE HOMEEQUITY DEBT THEN PAY OFF HOMEEQUITY LINES OF CREDIT AND TRY TO PAY DOWN YOUR MORTGAGE SO YOU WON'T HAVE TO WORRY ABOUT MAKING PAYMENTS WHEN YOU'RE RETIRED ONE WAY TO CUT YOUR MORTGAGE COSTS IF YOU DON'T WANT TO REFINANCE INTO A 15YEAR LOAN IS TO MAKE ADDITIONAL PAYMENTS ON AN EXISTING MORTGAGE PAYING AN EXTRA 100 A MONTH OR MAKING ONE ADDITIONAL PAYMENT ANNUALLY CAN CUT YEARS OFF THE LIFE OF MOST MORTGAGES IN THE BEST OF ALL POSSIBLE WORLDS YOU WOULD BE DEBTFREE AS YOU ENTER RETIREMENT BUT FEW PEOPLE LIVE IN THE BEST OF ALL POSSIBLE WORLDS IT ISN'T UNUSUAL FOR PEOPLE IN THEIR 60S AND 70S TO HAVE MORTGAGE PAYMENTS TO MAKE AND CAR LOANS TO REPAY SOME HAVE BUSINESS LOANS OUTSTANDING OR MAY NEED TO BORROW TO START A NEW BUSINESS A FEW WHO WAITED UNTIL THEIR 40S TO START A FAMILY OR WHO REMARRIED IN MIDDLE AGE AND HAD A SECOND FAMILY ARE TAKING ON DEBT TO PAY FOR A CHILD'S COLLEGE EDUCATION MANY OF THESE PEOPLE WANT TO BE DEBTFREE THIS IS THE BURNTHEMORTGAGE GENERATION PROBABLY THE LAST ONE SAYS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER BUT THEY WILL STILL BORROW WHEN IT MAKES SENSE TO DO SO SOME OLDER FOLKS MAY DECIDE TO RAISE CASH FOR SHORT TERM NEEDS BY BORROWING ALLOWING ASSETS IN THEIR RETIREMENT PLANS TO CONTINUE GROWING TAXDEFERRED AFTER ALL PEOPLE NOW IN THEIR 60S AND 70S COULD LIVE ANOTHER 20 YEARS THEY MAY WANT TO HELP THEIR CHILDREN OR GRANDCHILDREN FINANCIALLY OR TAKE A LIFETIME DREAM VACATION WHILE THEY STILL CAN SOME THINGS DON'T CHANGE WHEN YOU'RE OLDER YOU STILL HAVE TO CONSIDER YOUR CASH FLOW AND THE COST OF THE DEBT IN THESE LATER YEARS WHEN FUTURE INCOME AND CASH FLOW MAY BE UNCERTAIN FIXEDRATE LOANS GENERALLY ARE BETTER THAN VARIABLE RATES AND SHORTERTERM DEBT IS PREFERABLE TO LONGTERM DEBT MOST OLDER PEOPLE AREN'T COMFORTABLE WITH RISK SAYS STEVEN B WEINSTEIN OF ACCOUNTANTS ARTHUR ANDERSEN & CO INDEED FINANCIAL ADVISERS GENERALLY TELL OLDER FOLKS TO AVOID INVESTMENT DEBT YOU MAY NOT HAVE ENOUGH TIME TO ACHIEVE THE RATE OF RETURN NECESSARY TO OFFSET THE COST SAYS TIM KOCHIS A FINANCIAL PLANNER IN SAN FRANCISCO MARGIN DEBT OR BORROWING AGAINST THE VALUE OF STOCKS AND BONDS IN A PORTFOLIO IS PARTICULARLY RISKY BECAUSE OF THE POSSIBILITY OF A MARKET DOWNTURN THAT WOULD FORCE AN INVESTOR TO PUT UP ADDITIONAL COLLATERAL OR SELL THE SECURITIES MANY OLDER PEOPLE HAVE SUBSTANTIAL EQUITY IN A HOME WHICH GIVES THEM ACCESS TO LOWCOST TAXDEDUCTIBLE HOMEEQUITY DEBT YOU HAVE TO PLAN YOUR DEBT MORE CAREFULLY AS YOU GET OLDER SAYS WILLIAM G BRENNAN A PARTNER WITH ACCOUNTANTS ERNST & YOUNG IF YOU HAVE EQUITY IN A HOUSE IT MAKES SENSE TO USE IT IF YOU HAVE TO BORROW THOSE WHO HAVE THE EQUITY AND NEED THE CASH BUT WHO WOULDN'T QUALIFY FOR STANDARD BORROWING MIGHT CONSIDER A REVERSE MORTGAGE THIS IS A LOAN BASED ON THE EQUITY A HOMEOWNER HAS ACCUMULATED USUALLY DISBURSED IN MONTHLY INSTALLMENTS OVER A PERIOD OF YEARS THE AMOUNT GENERALLY DEPENDS ON THE BORROWER'S AGE AND THE AMOUNT OF EQUITY IN THE HOME THE OLDER YOU ARE AND THE MORE YOUR HOUSE IS WORTH THE BIGGER THE PAYMENTS WILL BE BUT THESE LOANS CAN BE COSTLY INTEREST CHARGES AND OTHER FEES USUALLY ARE FINANCED AS PART OF THE LOAN AND ADDED TO THE BALANCE THE HOUSE TYPICALLY IS SOLD TO REPAY THE LOAN WHEN THE BORROWER DIES OR MOVES OUT WHICH COULD LEAVE LITTLE OR NOTHING FOR THE HOMEOWNER OR TO PASS DOWN TO HEIRS PEOPLE DON'T LIKE TO LET GO OF THAT ASSET SAYS MR BRENNAN OF ERNST & YOUNG THEY THINK IF SOMETHING HAPPENS TO ME I CAN ALWAYS SELL IT 9312100149 931210 AMERICA WEST TRAFFIC RISES PHOENIX AMERICA WEST AIRLINES SAID ITS TRAFFIC IN NOVEMBER ROSE 13 TO 9543 MILLION REVENUE PASSENGER MILES FROM 8446 MILLION IN NOVEMBER 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 667 FROM 585 A YEAR EARLIER FOR THE 11 MONTHS AMERICA WEST'S TRAFFIC FELL 57 TO 103 BILLION REVENUE PASSENGER MILES FROM 109 BILLION A YEAR EARLIER LOAD FACTOR ROSE TO 654 FROM 612 9312100148 931210 FINANCING BUSINESS JARDINE FLEMING CHINA REGION FUND INC JARDINE FLEMING CHINA REGION FUND INC BALTIMORE SAID IT PLANS TO SELL AN ADDITIONAL 23 MILLION SHARES THROUGH A RIGHTS OFFERING THE CLOSEDEND FUND WHICH CONCENTRATES ON INVESTMENTS IN CHINA HONG KONG TAIWAN AND MACAU SAID SHAREHOLDERS WILL GET ONE RIGHT FOR EACH SHARE OF COMMON STOCK OWNED ON THE DEC 8 RECORD DATE FOR EACH THREE RIGHTS THEY CAN PURCHASE AN ADDITIONAL COMMON SHARE AT 1950 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY JARDINE FLEMING WAS UP 50 CENTS AT 25 9312100147 931210 MARKETING & MEDIA ADVERTISING RAPIDFIRE TOPPS TV ADS BREAK WITH NOSTALGIC TRADINGCARD PAST BY KEVIN GOLDMAN THE ONCE BOOMING SPORTS TRADINGCARD BUSINESS HAS TURNED SOFT FORCING MARKETERS TO CREATE NEW EXCITEMENT AMONG COLLECTORS TONIGHT AFTER A TWOYEAR ABSENCE FROM TELEVISION TOPPS RETURNS WITH A SPLASHY AD CAMPAIGN DESIGNED BY GREY ADVERTISING TOPPS WHICH BEGAN MANUFACTURING BASEBALL CARDS IN THE EARLY 1950S IS TRYING TO APPEAL TO A YOUNG HIP AUDIENCE WITH A 30SECOND SPOT TO RUN ON NETWORK AND CABLE BROADCASTS OF BASKETBALL GAMES TOPPS WILL ALSO ADVERTISE ON MTV THE COMMERCIAL PUTS TO SHAME THE RAPIDFIRE EDITING PERFECTED BY MTV IT BEGINS WITH THE WORDS IT'S JUST A CARD A TEENAGE BOY SNEERS INTO THE CAMERA YEAH RIGHT THEN THERE APPEARS A HODGEPODGE OF BASKETBALL STARS EACH ON THE SCREEN FOR NO MORE THAN A SPLITSECOND IT'S EXTREME INTENSITY SAYS THE THROATY ANNOUNCER EXTREME DESIGN IT'S TAKING CHANCES IT'S A RADICAL POINT OF VIEW IF YOU WANT TO FEEL THE GAME LIKE THIS YOU CAN'T JUST GO ANYWHERE YOU HAVE TO GO TO EXTREMES WE'RE ADVERTISING NOW BECAUSE WE MADE SOME PRODUCT IMPROVEMENT IN THE PAST SIX MONTHS AND THE CATEGORY HAD BECOME SO CLUTTERED SAYS JOHN J LANGDON PRESIDENT OF TOPPS THE CONSUMER WAS CONFUSED AND WAS CRYING OUT FOR SOME BASIC PACKAGEDGOODS BRANDING TOPPS CERTAINLY NEEDS A TURNAROUND THE COMPANY REPORTED THAT IN THE FISCAL SECONDQUARTER ENDED AUG 28 NET INCOME PLUNGED 52 TO 79 MILLION OR 17 CENTS A SHARE FROM 165 MILLION OR 35 CENTS A SHARE A YEAR EARLIER REVENUE FELL 17 TO 699 MILLION THE TOTAL SPORTSCARD MARKET HAS SHRUNK 21 SINCE 1990 TO 11 BILLION FROM 14 BILLION CONSUMERS WERE BUYING CARDS AT A BREAKNECK PACE AND WERE REWARDED FOR DOING SO SAYS ROBERT LIFSON PRESIDENT OF ROBERT EDWARD AUCTIONS A HOBOKEN NJ AUCTIONEER OF SPORTS MEMORABILIA THEY BOUGHT BOXES AND BOXES OF CARDS AND SOLD THEM AT A PROFIT DOCTORS AND LAWYERS HAD GARAGES WITH 100 BOXES APIECE THE COMPANIES HAVE BIGGER PRINTING PRESSES THAN THE DOCTORS AND LAWYERS HAVE SPACE IN THEIR GARAGES HE CONTINUES EVENTUALLY YOU HIT THE CEILING AND THE PEOPLE WHO WANT TO SELL THE CARDS ARE OUT OF LUCK OTHER TOPPS RIVALS ADVERTISE WE ARE YEARROUND ADVERTISERS ON TELEVISON SAYS PAUL MULLAN CHIEF EXECUTIVE OFFICER OF FLEER A UNIT OF MARVEL ENTERTAINMENT GROUP BASED IN MOUNT LAUREL NJ LIKE TOPPS FLEER MANUFACTURES TWO CATEGORIES OF TRADING CARDS FLEER ULTRA WITH THE SLOGAN YOU CAN'T BUY A BETTER CARD AND A BASIC BRAND WITH THE TAGLINE A GAME IN EVERY PACK TOPPS'S TOPOFTHELINE PRODUCT IS ITS STADIUM CLUB BRAND WHICH SELLS FOR 175 FOR A PACKET OF 12 CARDS ITS OTHER BRAND TOPPS SELLS FOR 79 CENTS FOR A PACKET OF 15 THE DIFFERENCE THE QUALITY OF PAPER STOCK AND THE FACT THAT STADIUM CLUB IS PRINTED IN LIMITED AMOUNTS MR LANGDON SAYS GREY ALSO IS DEVELOPING TELEVISION ADS FOR ITS BASIC LINE OF CARDS SPORTS TRADING CARDS HAVE COME A LONG WAY FROM THE DAYS WHEN THEY WERE STUFFED IN BACK POCKETS INNOCENTLY FLIPPED BY YOUNGSTERS AND ACCOMPANIED BY SWEETTASTING BUBBLE GUM THE DAYS OF SIMPLY PLASTERING A POSED SHOT OF SAY A GRINNING BASEBALL PLAYER LEANING ON A BASEBALL BAT ARE OVER ACTION IS THE NAME OF THE GAME TOPPS STADIUM CLUB CARDS FOR INSTANCE SHOW BRASH COLORS OF PURPLE AND YELLOW TO ILLUSTRATE STATISTICS OF A PLAYER MICROBIOS AND TIDBITS OF EACH PLAYER ARE WRITTEN UNDER THE FLASHY HEADLINE THE BUZZ AND THE CARD IS REPLETE WITH LOGOS TOPPS LIKE OTHER MAJOR CARD MANUFACTURERS PRODUCES CARDS FOR FOUR SPORTS BASEBALL THE PERENNIAL FAVORITE FOOTBALL HOCKEY AND BASKETBALL IF TOPPS'S NEW CAMPAIGN WHICH FOCUSES ENTIRELY ON BASKETBALL IS CONSIDERED SUCCESSFUL MR LANGDON SAYS GREY WILL DEVELOP OTHER ADS FOR OTHER SPORTS IF IT'S NOT SUCCESSFUL THEN IT'S BACK TO THE DRAWING BOARD HE SAYS ODDLY TOPPS DIDN'T CONDUCT AN AD AGENCY REVIEW IT PARTED WAYS WITH ITS FORMER AGENCY DICK TARLOW TWO YEARS AGO AND WAS APPROACHED BY GREY FOR THE ASSIGNMENT MR LANGDON WHO JOINED TOPPS FIVE YEARS AGO KNEW SEVERAL OF GREY'S EXECUTIVES FROM HIS DAYS AT MARS CANDY A GREY CLIENT TOPPS GAVE GREY A POSITIONING PROJECT IN AUGUST SAYS MR LANGDON AND THEN AWARDED THE AGENCY THE ASSIGNMENT A SPOKESWOMAN FOR GREY SAYS WE SAW TOPPS AS A MARKET LEADER IN A CATEGORY WHERE ADVERTISING WAS STARTING TO HAPPEN AND WE DIDN'T WANT TO LOSE THE OPPORTUNITY GREY WILL ALSO PRODUCE PRINT ADS FOR THE STADIUM CLUB TRADING CARDS WHICH WILL BREAK NEXT MONTH NEITHER TOPPS NOR GREY WOULD COMMENT ON AD SPENDING ALTHOUGH IT IS EXPECTED TO BE LESS THAN 10 MILLION MR MULLAN AT FLEER SAYS HIS COMPANY SPENDS ABOUT THAT MUCH ON ADS PRODUCED BY JAMES BUNGING ASSOCIATES AN AGENCY IN LANCASTER PA FLEER'S ADS ARE SEEN ON BROADCAST NETWORKS AS WELL AS CABLE OUTLETS INCLUDING TNT MTV AND NICKELODEON AS FOR TOPPS THE STADIUM CLUB SERIES ISN'T NOSTALGIA INDEED THE GUM LONG ASSOCIATED WITH TRADING CARDS HAS EVEN BEEN OMITTED A GREY SPOKESWOMAN SAID THE TEXTURE HARMED THE CARDS AND FACE IT THE BUBBLE GUM JUST MAY HAVE TRIVIALIZED THE PRODUCT PARTNERS NEW YORK WON A MAJOR ASSIGNMENT FROM NCR CORP SAID BRUCE MASON CHAIRMAN OF PARENT AGENCY FOOTE CONE & BELDING COMMUNICATIONS OF CHICAGO APPEARING BEFORE ANALYSTS YESTERDAY AT THE PAINEWEBBER MEDIA CONFERENCE NCR IS THE COMPUTER UNIT OF AMERICAN TELEPHONE & TELEGRAPH WHICH JUST HANDED FCB'S NEW YORK OPERATIONS THE BULK OF ITS 200 MILLION CONSUMER LONGDISTANCE ACCOUNT A SPOKESWOMAN FOR NCR SAID THAT BESIDES THE NEW ASSIGNMENT TO FCB NCR IS SPLITTING ITS ADVERTISING AMONG THREE SMALL AGENCIES FLYNN/SABATINO OF MIAMISBURG OHIO SAWYER RILEY COMPTON OF ATLANTA AND PAGLIARO KUHLMAN OF SAN JOSE CALIF THE SPOKESWOMAN DECLINED TO SAY WHAT THE ASSIGNMENT IS OR HOW MUCH IT IS WORTH TO FCB NCR'S TOTAL AD BUDGET IS ESTIMATED AT 30 MILLION TO 40 MILLION MR MASON ALSO REVEALED THAT FOOTE CONE PLANS TO EXPAND OPTIMEDIA ITS EUROPEAN MEDIABUYING SERVICE INTO A GLOBAL OPERATION THAT COULD HANDLE MEDIABUYING DUTIES FOR FCB CLIENTS WORLDWIDE AND PURSUE ITS OWN ACCOUNTS THAT MOVE IS PLANNED FOR THE FIRSTQUARTER OF 1994 MR MASON SAID FCB'S CHIEF FINANCIAL OFFICER TERRY ASHWILL SAID THE COMPANY WAS VERY CONFIDENT THAT IT WOULD MEET ITS TARGET OF A 15 INCREASE IN PERSHARE EARNINGS FOR THE YEAR THE COMPANY SEES PROFIT OF 258 MILLION OR 230 A SHARE UP 19 FROM 217 MILLION OR 2 A SHARE IN 1992 NATIONAL CAR RENTAL SYSTEM INC MINNEAPOLIS TAPPED WB DONER & CO OF SOUTHFIELD MICH FOR ITS ESTIMATED 20 MILLION AD ACCOUNT ENDING A LONG REVIEW DONER A DARKHORSE CONTENDER IN THE PITCH BESTED THREE OTHER AGENCIES LEO BURNETT CO OF CHICAGO HILL HOLLIDAY CONNORS COSMOPULOS OF BOSTON AND MARTIN/WILLIAMS OF MINNEAPOLIS AYER NEW YORK HAD ALSO BEEN NAMED AS A FINALIST IN THE PITCH BUT DROPPED OUT DONER TRULY TOOK A VERY SMART APPROACH SAID A SPOKESMAN FOR NATIONAL A UNIT OF GENERAL MOTORS CORP THE ACCOUNT HAD BEEN HANDLED UNTIL LATE 1992 BY CHIAT/DAY OF VENICE CALIF MEDIA SHIFT SEGA OF AMERICA THE REDWOOD CITY CALIF UNIT OF SEGA ENTERPRISES CONSOLIDATED AN ESTIMATED 75 MILLION IN MEDIA PLANNING AND BUYING WITH THE LOS ANGELES OFFICE OF OMNICOM GROUP'S BBDO THOSE DUTIES WERE PREVIOUSLY SPLIT BETWEEN BOHBOT COMMUNICATIONS SAN FRANCISCO AND THE NEW YORK AGENCY BOZELL A SEGA SPOKESWOMAN SAID BOHBOT REMAINS THE SYNDICATOR OF THE SONIC THE HEDGEHOG PROGRAM AND CONTINUES TO BUY SOME TIME IN CHILDREN'S SHOWS 9312100146 931210 FINANCING BUSINESS TRITON ENERGY CORP TRITON ENERGY CORP DALLAS SAID IT SOLD APPROXIMATELY 128 MILLION OF 975 SENIOR SUBORDINATED DISCOUNT NOTES DUE 2000 PROCEEDS WILL BE USED TO FUND THIS OIL AND GAS COMPANY'S CAPITAL EXPENDITURES FOR EXPLORATION AND DEVELOPMENT AND FOR GENERAL CORPORATE PURPOSES FACE VALUE OF THE ISSUE IS 170 MILLION THE NOTES PAY NO INTEREST FOR THE FIRST THREE YEARS AND THEN ACCRUE 975 PAYABLE SEMIANNUALLY UNDERWRITERS FOR THE ISSUE WERE BEAR STEARNS & CO JP MORGAN SECURITIES INC AND MERRILL LYNCH & CO 9312100145 931210 WHO'S NEWS MARVEL ENTERTAINMENT GROUP INC MARVEL ENTERTAINMENT GROUP INC NEW YORK BOBBY G JENKINS 31 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS COMIC BOOK SPORTS AND ENTERTAINMENT CARD AND LICENSING COMPANY HE FORMERLY WAS ASSISTANT VICE PRESIDENT FINANCE OF TURNER BROADCASTING SYSTEM HE SUCCEEDS JAMES T WILSON 45 WHO WAS NAMED EXECUTIVE VICE PRESIDENT FINANCE PAUL E SHAPIRO 52 FORMER MANAGING PARTNER IN THE WEST PALM BEACH FLA OFFICE OF THE LAW FIRM GREENBERG TRAURIG HOFFMAN LIPOFF ROSEN & QUENTEL WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL HE SUCCEEDS ROBERT L LOSEY 48 WHO WAS NAMED EXECUTIVE VICE PRESIDENT LEGAL AFFAIRS A NEW POSITION 9312100144 931210 NORTHWEST AIR TRAFFIC RISES MINNEAPOLIS NORTHWEST AIRLINES SAID ITS NOVEMBER TRAFFIC ROSE 42 TO 440 BILLION REVENUE PASSENGER MILES FROM 422 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 637 FROM 588 FOR THE FIRST 11 MONTHS OF 1993 THE WINGS HOLDINGS INC UNIT SAID IT FLEW 535 BILLION REVENUE PASSENGER MILES UNCHANGED FROM THE YEARBEFORE PERIOD THE LOAD FACTOR ROSE TO 67 FROM 656 9312100142 931210 INTERNATIONAL YELTSIN AND EC SIGN PACT TO BOLSTER TRADE POLICIES BRUSSELS IN A CEREMONY TIMED TO GIVE A PREELECTION BOOST TO RUSSIA'S REFORMERS RUSSIAN PRESIDENT BORIS YELTSIN AND THE EUROPEAN COMMUNITY SIGNED A WIDERANGING DECLARATION PLEDGING CLOSER TRADE AND POLITICAL TIES THE DECLARATION PROCLAIMS THAT THE EC UNDERLINES ITS DETERMINATION TO SUPPORT THE POLICY OF REFORMS NOW UNDER WAY IN RUSSIA IT CALLS FOR CLOSER COOPERATION ON A HOST OF ISSUES FROM INVESTMENT OPPORTUNITIES TO TRANSPORTATION AND TOURISM BOTH SIDES HAD HOPED TO SIGN A PARTNERSHIP AND COOPERATION AGREEMENT THAT HAS BEEN UNDER NEGOTIATION FOR MONTHS BUT HAD TO SETTLE INSTEAD FOR THE POLITICAL DECLARATION DUE TO UNRESOLVED ISSUES RELATING TO FOREIGNBANK OPERATIONS IN RUSSIA AND FRANCE'S DEMAND FOR SAFEGUARDS AGAINST RUSSIAN URANIUM IMPORTS EVEN AS THE DECLARATION WAS SIGNED HOWEVER A TOP EC NEGOTIATOR SAID SOLUTIONS HAD APPARENTLY BEEN FOUND ON THE BANKING BROUHAHA THE MOST SERIOUS ISSUE HE SAID RUSSIA HAD AGREED TO PHASE OUT A RECENT RESTRICTIVE DECREE OVER THE NEXT YEAR 9312100141 931210 WHO'S NEWS COMMONWEALTH EDISON CO COMMONWEALTH EDISON CO CHICAGO MICHAEL J WALLACE 46 YEARS OLD WAS ELECTED SENIOR VICE PRESIDENT HE PREVIOUSLY WAS A CORPORATE VICE PRESIDENT AND WAS NAMED CHIEF NUCLEAR OFFICER IN JUNE OF COMMONWEALTH EDISON THE US'S LARGEST NUCLEAR UTILITY 9312100140 931210 ONTARIO REFORMS AIM TO STRENGTHEN SECURITIES LAWS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE ONTARIO GOVERNMENT HAS INTRODUCED A PACKAGE OF REFORMS TO THE PROVINCE'S SECURITIES LAWS THAT STRENGTHEN REGULATORS' POWERS TO INVESTIGATE AND PUNISH MISCONDUCT THE AMENDMENTS WHICH STILL MUST BE PASSED BY ONTARIO'S PARLIAMENT WOULD GIVE THE ONTARIO SECURITIES COMMISSION POWERS TO REQUIRE PAYMENT OF COMPENSATION OR RESTITUTION RESCIND A SECURITIES TRANSACTION AND IMPOSE A GREATER RANGE OF CONDITIONS ON THE PARTICIPATION OF COMPANIES AND INDIVIDUALS IN SECURITIES MARKETS THE OSC ALSO WOULD BE GIVEN UP TO FIVE YEARS FROM THE TIME IT UNEARTHS SUSPECTED MISCONDUCT TO HOLD A HEARING OR SUBMIT A CASE TO PROVINCIAL COURTS CURRENTLY A COURT CASE MUST BE HELD WITHIN A YEAR AND A HEARING HELD WITHIN TWO YEARS OF AN ALLEGED OFFENSE EDWARD WAITZER CHAIRMAN OF OSC SAID HE BELIEVES THE REFORMS WILL SIGNIFICANTLY ENHANCE THE COMMISSION'S AUTHORITY AND EFFECTIVENESS HE NOTED THAT IN THE RECENT HIGHPROFILE CASE INVOLVING GORDON CAPITAL CORP IN WHICH THE FIRM AND SOME OF ITS FORMER AND CURRENT OFFICERS ADMITTED ALLOWING A SERIES OF TRANSACTIONS THAT RESULTED IN THE FIRM'S OVERSTATING ITS FREE CAPITAL POSITION THE PENALTIES EVENTUALLY ASSESSED WERE POSSIBLE ONLY BECAUSE GORDON AND THE OFFICERS AGREED TO THEM AS PART OF A SETTLEMENT HAD GORDON BEEN FOUND CULPABLE IN A HEARING MR WAITZER NOTES THE OSC WOULDN'T HAVE BEEN ABLE TO ORDER IT TO CONTRIBUTE 6 MILLION CANADIAN DOLLARS US45 MILLION TO AN INVESTOR PROTECTION FUND TO REPRIMAND ITS COMPLIANCE OFFICER OR ORDER THE FIRM TO UNDERTAKE AN EDUCATION PROGRAM ON TOP OF THE NEW ENFORCEMENT POWERS THE GOVERNMENT HAS GIVEN THE OSC A MANDATE TO RECOGNIZE AND OVERSEE SELFREGULATORY ORGANIZATIONS SUCH AS THE INVESTMENT DEALERS ASSOCIATION A BROKERAGE INDUSTRY GROUP MR WAITZER SAID RECOGNITION COULD BE EXTENDED TO GROUPS SUCH AS CLEARING HOUSES OR ORGANIZATIONS REPRESENTING MUTUAL FUNDS THE GOVERNMENT ALSO HAS SOUGHT TO TIGHTEN LOOPHOLES WHICH NOW ALLOW COMPANIES AND INDIVIDUALS TO ESCAPE JURISDICTION OF THE TORONTO STOCK EXCHANGE BY RESIGNING AS MEMBERS UNDER AMENDMENTS TO THE ACT GOVERNING THE EXCHANGE THE TSE WOULD BE PERMITTED TO DISCIPLINE FORMER MEMBERS FOR CONDUCT THAT OCCURRED WHILE THEY WERE STILL MEMBERS THE NEW REGULATIONS WERE INTRODUCED YESTERDAY AS PART OF A PROVINCIAL GOVERNMENT BILL THAT INCLUDED REFORMS TO PROVINCIAL REGULATION OF CREDIT UNIONS AND LIFE INSURANCE REPRESENTATIVES 9312100139 931210 WHO'S NEWS BETZ LABORATORIES INC BETZ LABORATORIES INC TREVOSE PA JOHN F MCCAUGHAN WILL RESIGN AS CHIEF EXECUTIVE OFFICER OF THIS SPECIALTY CHEMICAL COMPANY A BETZ SPOKESMAN SAID MR MCCAUGHAN 58 YEARS OLD HAD PREVIOUSLY SAID HE WOULD RETIRE AT AGE 60 BUT DECIDED TO RESIGN SOONER AFTER SUFFERING A HEART ATTACK EARLIER IN THE YEAR HE WILL REMAIN CHAIRMAN PRESIDENT WILLIAM R COOK 50 WILL SUCCEED MR MCCAUGHAN AS CHIEF EXECUTIVE 9312100138 931210 AUTO SALES IN SPAIN FELL 17 IN NOVEMBER 25 IN YEARTODATE SPECIAL TO THE WALL STREET JOURNAL MADRID SPANISH NEW CAR SALES DROPPED 17 IN NOVEMBER FROM A YEAR EARLIER AND FELL 25 IN THE FIRST 11 MONTHS OF THE YEAR THE SPANISH ASSOCIATION OF CAR MAKERS OR ANFAC SAID ANFAC SAID THE NUMBER OF VEHICLES SOLD IN NOVEMBER TOTALED 55735 COMPARED WITH 67258 CARS A YEAR EARLIER IN THE 11 MONTHS 675279 CARS WERE SOLD COMPARED WITH 894638 A YEAR EARLIER ANFAC SAID IMPORTS ACCOUNTED FOR 32422 OF THE CARS SOLD IN NOVEMBER 2699 OF WHICH WERE JAPANESE MANUFACTURED IN THE 11 MONTHS 372437 OF THE CARS SOLD WERE IMPORTED OF THAT TOTAL 29782 WERE MADE IN JAPAN FASA RENAULT THE SPANISH SUBSIDIARY OF FRANCE'S RENAULT SA SAW SALES DROP 32 IN NOVEMBER TO 8952 CARS FROM 13149 A YEAR EARLIER FROM JANUARY TO NOVEMBER FASA RENAULT'S SALES DROPPED 31 TO 111626 FROM 162053 SEAT SA THE SPANISH UNIT OF GERMAN CAR GIANT VOLKSWAGEN AG SAW SALES PLUNGE 30 TO 4554 IN NOVEMBER FROM 6496 A YEAR EARLIER IN THE 11 MONTHS SALES FELL 19 TO 71302 CARS FROM 88367 9312100137 931210 POSSIS CHANGES ITS NAME MINNEAPOLIS POSSIS CORP SAID IT CHANGED ITS NAME TO POSSIS MEDICAL INC AFTER SHAREHOLDERS APPROVED THE CHANGE AT THE COMPANY'S ANNUAL MEETING THIS WEEK THE COMPANY'S STOCK WILL CONTINUE TO BE LISTED ON THE NATIONAL OVERTHECOUNTER MARKET UNDER ITS CURRENT TRADING SYMBOL POSS POSSIS SAID THE NAME CHANGE REFLECTS ITS DECISION TO FOCUS EXCLUSIVELY ON ITS MEDICAL DEVICE BUSINESS 9312100136 931210 ZURN GETS A CONTRACT ERIE PA ZURN INDUSTRIES INC SAID IT WAS AWARDED A 45 MILLION DESIGN AND CONSTRUCTION CONTRACT FOR A COMBINEDCYCLE COGENERATION PLANT IN BARTOW FLA BY ORANGE COGENERATION LP THE PLANT SCHEDULED FOR COMPLETION IN MID1995 WILL PRODUCE AND SELL STEAM TO ORANGE CO AND ELECTRICITY TO FLORIDA POWER CORP AND TAMPA ELECTRIC CO ORANGE COGENERATION WAS FORMED BY CSW ENERGY INC OF DALLAS AND ARK ENERGY INC OF LAGUNA HILLS CALIF 9312100135 931210 TECHNOLOGY & HEALTH FDA APPROVES MEDTRONIC LEAD' DEVICE USED FOR CORRECTING RAPID HEARTBEAT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION APPROVED MEDTRONIC INC'S ELECTRICAL LEAD SYSTEM FOR ITS HEART DEFIBRILLATOR SETTING THE STAGE FOR A BATTLE OVER CONTROL OF THE FASTGROWING BUSINESS THE FEDERAL AGENCY'S APPROVAL OF MEDTRONIC'S TRANSVENE LEAD BASICALLY A SYSTEM OF WIRES ATTACHED TO THE HEART WAS CONSIDERED CRUCIAL IN THAT FIGHT THE LEAD IS DESIGNED TO DETECT POTENTIALLY FATAL RAPID HEART RHYTHMS AND TO CONDUCT ELECTRICAL IMPULSES TO THE HEART TO STOP THEM IT CONNECTS THE HEART TO THE SURGICALLY IMPLANTED DEFIBRILLATOR WHICH ACTUALLY PRODUCES THE ELECTRIC CURRENT THAT SLOWS DOWN A RUNAWAY HEARTBEAT THE DEVICE IS A SOCALLED TRANSVENOUS LEAD MEANING THAT IT CAN BE THREADED THROUGH A VEIN INTO THE HEART BY CONTRAST OLDER LEADS COULD BE INSTALLED ONLY THROUGH OPENCHEST SURGERY WHICH CAUSED A COMPARATIVELY HIGH MORTALITY RATE THE FDA APPROVAL MAKES MINNEAPOLISBASED MEDTRONIC THE ONLY COMPANY WITH BOTH A STATEOFTHEART DEFIBRILLATOR AND A TRANSVENOUSLEAD SYSTEM APPROVED FOR GENERAL SALE IN THE US THE CADENCE DEFIBRILLATOR MADE BY COMPETITOR VENTRITEX INC HAS SOME ADVANTAGES OVER MEDTRONIC'S DEFIBRILLATOR THAT ARE PREFERRED BY MANY CARDIOLOGISTS BUT VENTRITEX DOESN'T HAVE AN FDAAPPROVED TRANSVENOUS LEAD SO MANY DOCTORS HAVE BEEN USING THE VENTRITEX MACHINE IN COMBINATION WITH A TRANSVENOUSLEAD SYSTEM MADE BY ELI LILLY & CO'S CARDIAC PACEMAKERS INC UNIT MEDTRONIC AND VENTRITEX BOTH HAVE BEEN CATCHING UP TO LILLY IN THE US WHICH REPRESENTS THE BULK OF THE WORLDWIDE MARKET FOR CARDIAC DEFIBRILLATORS ANALYSTS SAY ANNUAL WORLDWIDE SALES OF THE LIFESAVING DEVICES ARE LIKELY TO EXCEED 1 BILLION WITHIN THE NEXT FEW YEARS IN THE MOST RECENT QUARTER LILLY STILL HAD SOME 55 MILLION IN WORLDWIDE SALES OF DEFIBRILLATORS AND LEADS FOR TOORAPID HEARTBEATS ANALYSTS ESTIMATE MEDTRONIC HAD ABOUT 30 MILLION AND VENTRITEX JUST UNDER 18 MILLION ANALYSTS SAY BOTH MEDTRONIC AND VENTRITEX HAVE BEEN GAINING ON LILLY WITH VENTRITEX MOVING MORE QUICKLY MICHAEL G MULLEN AN ANALYST WITH COWEN & CO SAID MEDTRONIC WILL PRICE ITS DEFIBRILLATOR AND LEAD PACKAGE AT 23500 COMPARED WITH THE 25000 COMBINED PRICE FOR VENTRITEX'S CADENCE AND LILLY'S ENDOTAK LEAD THE LOWER PRICE COULD BE A FACTOR IN AN ERA OF PRICECONSCIOUSNESS AMONG HEALTHCARE PROVIDERS TRADING IN MEDTRONIC SHARES WAS HALTED BEFORE NEWS OF THE FDA ACTION AND DIDN'T RESUME YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MEDTRONIC SHARES SANK 250 TO 82125 9312100134 931210 FINANCING BUSINESS CHARTER FEDERAL SAVINGS BANK CHARTER FEDERAL SAVINGS BANK BRISTOL VA ANNOUNCED A 1FOR5 REVERSE STOCK SPLIT EFFECTIVE DEC 20 WHICH WILL REDUCE THE NUMBER SHARES OUTSTANDING TO 51 MILLION FROM 256 MILLION THE COMPANY SAID THE REVERSE SPLIT WHICH WILL EFFECTIVELY BOOST THE STOCK PRICE WILL ALSO ENABLE THE STOCK TO BE PURCHASED WITH BORROWED FUNDS OR TO SECURE A LOAN CHARTER FEDERAL WITH 26 OFFICES HAS ABOUT 718 MILLION IN ASSETS IN OVERTHECOUNTER TRADING YESTERDAY CHARTER FEDERAL SHARES FELL 1875 CENTS TO 2875 9312100133 931210 DISABLED ATHLETES AND OLYMPIANS SPAR FOR TURF BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE LEASTKNOWN OLYMPIC SPORTS IS CALLED HARDBALL IT'S PLAYED IN THE BOARDROOMS OF THE US OLYMPIC COMMITTEE AND ORGANIZERS OF A MOVEMENT CALLED THE PARALYMPICS ARE LEARNING IT CAN BE A ROUGH GAME THE PARALYMPICS IS AN OLYMPICS FOR THE DISABLED A COMPETITION EVERY FOUR YEARS AMONG THE WORLD'S BEST WHEELCHAIR MARATHONERS BLIND SWIMMERS AND OTHER ELITE ATHLETES WITH PHYSICAL DISABILITIES TECHNOLOGICAL IMPROVEMENTS IN WHEELCHAIRS PROSTHESES AND OTHER EQUIPMENT HAVE ENABLED PARALYMPIC ATHLETES TO ACHIEVE THE UNTHINKABLE DOUBLELEG AMPUTEES FOR INSTANCE HAVE RUN 100 METERS IN 1134 SECONDS LESS THAN TWO SECONDS SLOWER THAN THE OLYMPIC RECORD FIRST HELD IN ROME IN 1960 WITH JUST 400 COMPETITORS THE SUMMER PARALYMPICS NOW DRAWS THOUSANDS OF ATHLETES AND MORE THAN ONE MILLION SPECTATORS IN 1996 ATLANTA WILL HOST BOTH EVENTS THE TRADITIONAL SUMMER OLYMPICS AND TWO WEEKS LATER THE PARALYMPICS THE LATTER HAS BECOME A COSTLY AFFAIR ORGANIZERS OF THE 1996 EVENT ESTIMATE THEY WILL SPEND AS MUCH AS 90 MILLION TO STAGE THE GAMES EFFORTS TO RAISE THAT MONEY THOUGH HAVE BROUGHT THE PARALYMPIC MOVEMENT FACETOFACE WITH A SURPRISINGLY COMBATIVE OLYMPIC MOVEMENT THE TWO SIDES HAVE FOUGHT OVER CORPORATE SPONSORS QUARRELED OVER THE SALE OF LICENSED MERCHANDISE AND EVEN DEBATED OWNERSHIP OF THE PARALYMPIC NAME PARA A PARALYMPICS SPOKESMAN SAYS MEANS ALONGSIDE OR PARALLEL WITH THE OLYMPICS A RECENT MARKETING AGREEMENT IN WHICH OLYMPIC OFFICIALS PREVAILED ON MOST ISSUES HAS QUIETED THE FEUD FOR NOW BUT THE OLYMPICPARALYMPIC CONFRONTATION ILLUSTRATES THE OLYMPIC MOVEMENT'S ZEAL IN GUARDING ITS LUCRATIVE MARKETING FRANCHISE PERHAPS MORE IMPORTANT THE STRUGGLE IS A SIGN THAT DISABLED SPORT HAS BECOME A LEGITIMATE FORCE IN THE OFTEN CUTTHROAT BUSINESS OF ATHLETICS BUT THE ULTIMATE SUCCESS OF THE PARALYMPIC MOVEMENT DEPENDS ON ITS FINANCIAL BACKING THE 1992 BARCELONA PARALYMPICS HIT NEW HEIGHTS 46 OF ALMOST 200 DIFFERENT EVENTS WERE SOLD OUT PRIMARILY BECAUSE A GIANT SPANISH FOUNDATION DONATED 45 MILLION TO STAGE AND PROMOTE THEM ATLANTA'S PARALYMPIC COMMITTEE ISN'T SO LUCKY NO CHARITY HAS STEPPED FORWARD TO PAY THE BILL SO FOR THE FIRST TIME THE PARALYMPICS IS BEING TOUTED MORE AS A CORPORATE MARKETING VEHICLE THAN A CHARITABLE CAUSE FUNDRAISERS ARE SOLICITING 4 MILLION TO 6 MILLION FOR EACH EXCLUSIVE CORPORATE SPONSORSHIP IT'S AN AMBITIOUS PRICETAG ONE THAT ROUGHLY MATCHES THE COST OF SPONSORSHIPS FOR THE 1984 OLYMPIC GAMES IN LOS ANGELES BUT PARALYMPIC PROMOTERS ARE PITCHING THE PROPERTY AS A WAY TO BUILD CUSTOMER LOYALTY AMONG AMERICA'S ESTIMATED 43 MILLION DISABLED PEOPLE ALREADY THE COMMITTEE HAS FOUND SOME SUCCESS SIGNING BOTH COCACOLA CO AND SUNRISE MEDICAL INC AS FULL SPONSORS BUT ANDREW FLEMING PRESIDENT OF THE ATLANTA PARALYMPIC COMMITTEE SAYS MOST COMPANIES ARE SLOW TO VIEW THE EVENT AS A SERIOUS AND VALUABLEBUSINESS OPPORTUNITY WE ARE JUST ESTABLISHING OUR CREDIBILITY HE SAYS A NUMBER OF OTHER FUNDRAISING HURDLES ARE CONTAINED IN THE PARALYMPIC ORGANIZING COMMITTEE'S MARKETING AGREEMENT WITH THE US OLYMPIC COMMITTEE AND THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES PARALYMPIC PROMOTERS ARE BARRED FROM APPROACHING NONOLYMPIC SPONSORS WITHOUT PERMISSION THUS THE COMMITTEE IS ALLOWED TO ASK MCDONALD'S CORP ONE OF 15 OFFICIAL OLYMPIC SPONSORS TO DATE TO BECOME ITS FASTFOOD SPONSOR IF MCDONALD'S SAYS NO THE COMMITTEE CAN'T TURN TO SAY BURGER KING AS AN ALTERNATIVE THE MARKETING AGREEMENT ALSO FORBIDS PARALYMPIC ORGANIZERS FROM SELLING TSHIRTS MUGS AND OTHER PROMOTIONAL ITEMS NATIONWIDE UNTIL JANUARY 1995 BY CONTRAST ATLANTA'S OLYMPIC ORGANIZERS HAVE ALREADY SOLD MORE THAN 75 MILLION OF MERCHANDISE THE PACT DOES INCLUDE A 5 MILLION CASH PAYMENT TO THE PARALYMPIC COMMITTEE AND AN ADDITIONAL 10 MILLION DONATION IN KIND AND ALTHOUGH TWO OF THE OLYMPIC'S 16 COMMEMORATIVE COINS REPRESENT THE PARALYMPICS ONLY 5 OF THE REVENUE FROM THAT MULTIMILLION DOLLAR PROGRAM WILL GO TO THE PARALYMPICS THE MARKETING AGREEMENT WAS HAMMERED OUT IN TWO YEARS OF CONTENTIOUS NEGOTIATION THAT FINALLY ENDED IN LATE OCTOBER IN POSTURING THAT MR FLEMING CHARACTERIZES AS AGGRESSIVE OLYMPIC OFFICIALS ARGUED THAT THE PARALYMPIC NAME AND EVENT ACTUALLY BELONG TO THE US OLYMPIC COMMITTEE UNDER THE AMATEUR SPORTS ACT OF 1978 WHICH CONSOLIDATED MOST AMERICAN AMATEUR SPORTS PROGRAMS AT ONE POINT OLYMPIC NEGOTIATORS INSISTED THAT PARALYMPIC OFFICIALS NOT BRING THEIR ATTORNEYS TO A KEY MEETING ACCORDING TO AN INDIVIDUAL WHO ATTENDED THE US OLYMPIC COMMITTEE'S MARKETING CHIEF AND TOP NEGOTIATOR JOHN KRIMSKY JR WOULDN'T COMMENT ON THAT MEETING MR KRIMSKY SAYS HIS PRIMARY OBJECTIVE IN THE TALKS WAS PREVENTING AMBUSH MARKETING FORAYS AGAINST OLYMPIC SPONSORS MANY OF WHOM HAVE PAID 40 MILLION FOR EXCLUSIVE PROMOTIONAL RIGHTS HE SAYS SPONSORS OF THE PARALYMPICS COULD HAVE ASSUMED AN OLYMPIC IMAGE WITHOUT GOING THROUGH THE PROPER CHANNELS THE MARKETING OF THE OLYMPIC MOVEMENT LIVES AND DIES BY ITS ABILITY TO PRESERVE EXCLUSIVITY SAYS MR KRIMSKY WHO IS HELPING RAISE THE 16 BILLION NEEDED TO STAGE THE 1996 OLYMPIC GAMES THERE IS ONLY ONE SOFT DRINK AND THAT SOFT DRINK IS COCACOLA PARALYMPIC OFFICIALS SAY THEY GAVE IN ON MOST ISSUES FOR TWO REASONS TIME WAS RUNNING OUT AND MANY OLYMPIC SPONSORS ALSO THE MOST LIKELY PARALYMPIC SPONSORS WERE HOLDING OUT UNTIL AN AGREEMENT WAS REACHED WITH THE PARALYMPIC NEGOTIATIONS NOW OVER DISABLEDSPORTS ADVOCATES ARE TURNING TO OTHER ISSUES FINANCIAL MATTERS IN PARTICULAR IN THE FOUR YEARS ENDING IN 1996 THE US OLYMPIC COMMITTEE WILL GIVE 84 MILLION IN DIRECT GRANTS TO THE NATIONAL GOVERNING BODIES THAT SUPERVISE ABLEBODIED SPORTS MEANWHILE DISABLEDSPORTS ORGANIZATIONS WILL RECEIVE 34 MILLION OR ABOUT 4 OF THE TOTAL NEARLY ALL DISABLEDSPORTS LEADERS SAY THAT NUMBER SHOULD BE HIGHER HOW HIGH DISABLED PERSONS REPRESENT ABOUT 15 OF THE POPULATION SAYS KIRK BAUER EXECUTIVE DIRECTOR OF NATIONAL HANDICAPPED SPORTS YOU CAN DRAW YOUR OWN CONCLUSIONS DISABLEDSPORTS OFFICIALS ALSO TAKE ISSUE WITH THEIR LACK OF REPRESENTATION ON OLYMPIC GOVERNING BODIES THE US OLYMPIC COMMITTEE'S 100MEMBER BOARD HAS JUST ONE DISABLEDSPORTS DESIGNATE AND THE POWERFUL ATHLETES ADVISORY COUNCIL LARGELY COMPRISING OFFICIALS OF NATIONAL SPORTS ASSOCIATIONS HAS 47 MEMBERS BUT NO DISABLEDSPORTS REPRESENTATIVES DESPITE THE SETBACKS DISABLED SPORT HAS RECORDED SOME VICTORIES FOR THE FIRST TIME THE US OLYMPIC COMMITTEE RECENTLY AGREED TO SPEND ABOUT 15 MILLION TO FULLY FUND THE US PARALYMPIC TEAMS BOTH NEXT YEAR IN LILLEHAMMER NORWAY AND IN 1996 IN ATLANTA THE COMMITTEE ALSO ADDED A FULLTIME ADMINISTRATOR CHARGED WITH COORDINATING DISABLED SPORTS IT'S QUITE A NICE STEP FORWARD SAYS LOU MONEYMAKER AN EXECUTIVE COMMITTEE MEMBER FOR THE US ASSOCIATION FOR BLIND ATHLETES BUT WE'RE NOT GOING TO GIVE UP THE BATTLE IF WE'RE NOT RECEIVING AN EQUAL SHARE 9312100132 931210 READER'S DIGEST REFINES METHODS TO BOOST REVENUE BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK READER'S DIGEST ASSOCIATION INC SAID IT REVAMPED ITS DISTRIBUTION AND PROMOTION PROCEDURES TO BOOST REVENUE AND PROFIT AT ITS SLUGGISH US BOOKS AND HOME ENTERTAINMENT BUSINESS SPEAKING TO ANALYSTS AT THE ANNUAL PAINEWEBBER GROUP INC MEDIA CONFERENCE JAMES P SCHADT PRESIDENT AND CHIEF OPERATING OFFICER SAID SOME CHANGES HAVE ALREADY RESULTED IN IMPROVEMENTS INCLUDING FEWER RETURNED BOOKS WHEN THE COMPANY ANNOUNCED IN MAY THAT DISAPPOINTING SALES OF DOMESTIC BOOKS VIDEOS AND MUSIC PRODUCTS RESULTED IN A 6 DROP IN US REVENUE FOR THE THIRDQUARTER ITS STOCK FELL 13 GEORGE V GRUNE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF READER'S DIGEST SAID YESTERDAY THAT THE COMPANY WAS AT FAULT FOR AMONG OTHER THINGS SENDING OUT TOO MANY MAILINGS FOR NEW PRODUCTS IN FISCAL 1993 WE MAY HAVE CONFUSED CONSUMERS SAID MR GRUNE SO THIS YEAR FEWER OFFERINGS ARE BEING MAILED AND THOSE ARE GOING TO A MORE SELECTIVE LIST OF CUSTOMERS MR SCHADT SAID ADDITIONAL CHANGES ARE STILL BEING MADE ON THE PROMOTIONAL SIDE WITH THE US DIVISION'S ADOPTING TECHNIQUES THAT HAVE BEEN VERY SUCCESSFUL ABROAD HOWEVER SOME OF THOSE CHANGES WON'T HAPPEN UNTIL SPRING HE SAID ADDING WE'RE STICKING WITH OUR FORECAST THAT IT WILL TAKE ONE TO TWO YEARS FROM WHEN WE FIRST TOLD YOU ABOUT IT TO TURN THE DIVISION AROUND THE PLEASANTVILLE NY COMPANY DECLINED TO MAKE A DETAILED FORECAST OF EARNINGS FOR THE YEAR ENDING JUNE 30 CHIEF FINANCIAL OFFICER ANTHONY W RUGGIERO SAID WE CONTINUE TO TARGET LONGTERM EARNINGS GROWTH AT 10 TO 15 A YEAR EXCLUSIVE OF FOREIGN CURRENCY FLUCTUATIONS NEXT YEAR MAY BE IN THE LOW RANGE OF THAT TARGET FOR FISCAL 1993 READER'S DIGEST EARNED 2073 MILLION OR 174 A SHARE ON REVENUE OF 287 BILLION DURING ITS PRESENTATION THE COMPANY DEMONSTRATED A PROTOTYPE CDROM VERSION OF ITS READER'S DIGEST ILLUSTRATED REVERSE DICTIONARY INCLUDING FEATURES SUCH AS 12000 WORDS PRONOUNCED ALOUD AND A DATA BASE THAT INCLUDES ANIMAL SOUNDS A USER TYPES IN A DESCRIPTION OF A WORD SUCH AS THING THAT RAISES A SHIP'S SAILS AND THE PROGRAM SUPPLIES A LIST OF POSSIBLE WORDS OFTEN ACCOMPANIED WITH ILLUSTRATIONS DESPITE THE DISPLAY HOWEVER EXECUTIVES STRESSED EMPHATICALLY THAT THEY WON'T BE BRINGING ELECTRONIC PRODUCTS TO THE MARKET ANYTIME SOON WE WON'T TOOL UP IN MULTIMEDIA UNTIL THE REVENUE POTENTIAL IS THERE FOR US TO USE OUR MASSMARKET SALES AND PROMOTION TECHNIQUES SAID MR SCHADT WE ARE JUST WORKING ON PRODUCTS LIKE THE CDROM DICTIONARY TO LEARN FOR OURSELVES SO THAT WHEN THE TIME COMES WE'LL HAVE THE RIGHT PRODUCTS HE SAID READER'S DIGEST BELIEVES ITS EXTENSIVE BACKLIST OF HOWTO BOOKS WILL BE ESPECIALLY ADAPTABLE TO MULTIMEDIA FORMATS ONCE THEY'RE USED BY CONSUMERS 9312100131 931210 CORRECTIONS & AMPLIFICATIONS TIGER MANAGEMENT'S FUNDS HAVE RETURNED ABOUT 52 SO FAR THIS YEAR A MONEY & INVESTING ARTICLE YESTERDAY INCORRECTLY REPORTED THE FUNDS WERE UP 32 THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN DISCIPLINING BROKERAGE FIRM CHATFIELD DEAN & CO SUSPENDED COMPLIANCE DIRECTOR KENNETH S BERNSTEIN FOR TWO YEARS IN CERTAIN SUPERVISORY CAPACITIES AN ARTICLE YESTERDAY INCORRECTLY SAID MR BERNSTEIN WAS SUSPENDED FOR TWO YEARS 9312100130 931210 RETAILER PERFUMANIA REVLON OUTLET PLAN 349 MILLION MERGER NEW YORK RETAILER PERFUMANIA INC AND REVLON CONSUMER PRODUCTS CORP HAVE SIGNED A NONBINDING LETTER OF INTENT TO MERGE REVLON'S OUTLET STORE SUBSIDIARY INTO PERFUMANIA IN EXCHANGE FOR STOCK VALUED AT 349 MILLION THE PROPOSED MERGER WOULD CREATE A FORMIDABLE DISCOUNT FRAGRANCE AND COSMETICS CHAIN COMBINING MIAMIBASED PERFUMANIA'S 139 DISCOUNT STORES AND REVLON'S 137STORE PRESTIGE FRAGRANCE & COSMETICS INC OUTLET SUBSIDIARY WHICH SELLS DISCOUNTINUED AND DISTRESSED REVLON MERCHANDISE REVLON WOULD OWN JUST OVER HALF OF PERFUMANIA'S SHARES OUTSTANDING WHICH WOULD ROUGHLY DOUBLE FROM ABOUT 57 MILLION PERFUMANIA SHARES CLOSED YESTERDAY IN TRADING ON THE NASDAQ STOCK MARKET AT 6125 A SHARE UP 125 CENTS THE PROPOSED TRANSACTION IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING THE EXECUTION OF A DEFINITIVE AGREEMENT REFINANCING OF PERFUMANIA'S EXISTING BANK DEBT AND APPROVAL FROM BOTH COMPANY'S BOARDS REVLON CONSUMER PRODUCTS IS A UNIT OF REVLON INC WHICH IS CONTROLLED BY INVESTOR RONALD PERELMAN 9312100129 931210 CANADA STEEL OUTPUT RISES OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 307689 TONS IN THE WEEK ENDED DEC 4 A 48 INCREASE FROM 293536 TONS THE PREVIOUS WEEK BUT A 47 DECLINE FROM 322971 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY FOR THE YEAR PRODUCTION TOTALED 146 MILLION TONS A 37 INCREASE FROM 141 MILLION TONS A YEAR EARLIER 9312100127 931210 ENTERPRISE DEBT COLLECTORS' SCAMS SQUEEZE SMALL BUSINESSES BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL AS YEAR END APPROACHES ARMIES OF SMALL BUSINESSES ARE HIRING DEBT COLLECTORS TO GATHER LATE PAYMENTS AND CLEAN UP THEIR BALANCE SHEETS BUT ABUSES BY COMMERCIALDEBT COLLECTORS ARE ON THE RISE THE NUMBER OF COMPLAINTS ABOUT COMMERCIALDEBTCOLLECTION SCAMS HAS INCREASED MORE THAN 30 IN THE PAST YEAR REPORTS THE COMMERCIAL COLLECTION AGENCY OF THE COMMERCIAL LAW LEAGUE OF AMERICA A TRADE GROUP IN NEW PROVIDENCE NJ IN AN ECONOMY THAT HAS BEEN GROWING SLOWLY MANY SMALL BUSINESSES HAVE HEIGHTENED CONCERNS ABOUT COLLECTION FRAUD THERE'S A GREATER SENSITIVITY TO IT TODAY BECAUSE COMPANIES JUST CAN'T AFFORD TO LOSE MONEY TO FRAUDULENT DEBT COLLECTORS SAYS FRANK UHLMAN PRESIDENT OF THE COMMERCIAL COLLECTION AGENCY IN THE PAST SHADY COLLECTORS TYPICALLY KEPT THE DEBT PAYMENTS THEY GATHERED BUT SCAMS NOW INCREASINGLY INVOLVE BRIBES OR KICKBACKS PAID BY COLLECTION AGENCIES TO A CLIENT COMPANY'S CREDIT MANAGER ACCORDING TO THE FEDERAL BUREAU OF INVESTIGATION AND OTHER LAWENFORCEMENT AGENCIES BY CORRUPTING THE CREDIT MANAGER MANY COLLECTION AGENCIES GAIN ACCESS TO A CORPORATE COMPUTER SYSTEM LAWENFORCEMENT OFFICIALS SAY THIS LETS COLLECTION AGENCIES ALTER INVOICES TO CREATE THE APPEARANCE OF LATE PAYMENTS THEN THE AGENCIES DEMAND A COMMISSION ON THE DEBTS THEY HAVE COLLECTED A SERIES OF SUCH ALLEGED SCHEMES RESULTED IN A CRIMINAL INDICTMENT LAST APRIL OF INDIVIDUALS INVOLVED WITH NATIONWIDE RECOVERY SERVICES INC AMERICAN FINANCIAL SYSTEMS INC AND FARGO FINANCIAL SERVICES INC THE INTERRELATED COMMERCIALCOLLECTION AGENCIES WHICH HAVE SINCE SHUT THEIR DOORS OPERATED OUT OF NEW YORK AND BOCA RATON FLA THE AGENCIES JOINTLY DEFRAUDED AT LEAST 18 SMALL COMPANIES ACCORDING TO CHARGES FILED IN US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA AND THE EASTERN DISTRICT OF WISCONSIN FEDERAL PROSECUTORS ALLEGE THAT THE AGENCIES BILKED THEIR CLIENTS OUT OF ABOUT 10 MILLION BETWEEN 1988 AND 1992 OFTEN WITH THE HELP OF CORRUPTED CREDIT MANAGERS THE COLLECTION AGENCIES TYPICALLY PAID PARTICPATING CREDIT MANAGERS 5 OF THE COLLECTED DEBT ACCORDING TO THE INDICTMENTS THE AGENCIES TYPICALLY RECEIVE A 20 COMMISSION ON THE COLLECTED DEBT THESE COLLECTION AGENCIES REALLY PLAY ON THE EMOTIONS OF CREDIT MANAGERS SAYS ROBERT SMICKLEY PRESIDENT OF WISCONSIN CENTRIFUGAL CO THE WAUKESHA WIS PARTS SUPPLIER SAYS IT LOST MORE THAN 600000 TO NATIONWIDE AND THE OTHER AGENCIES THEY LET CREDIT MANAGERS KNOW HOW LITTLE THEY'RE PAID COMPARED TO OTHER EXECUTIVES IN THE COMPANY MR SMICKLEY ADDS PROSECUTORS SAY GEORGE PLAYTON THE ALLEGED CENTRAL FIGURE IN THIS SCAM CURRENTLY IS A FUGITIVE OF THE 31 OTHER INDIVIDUALS NAMED IN THE INDICTMENTS 12 HAVE PLEADED GUILTY THE OTHERS AWAIT TRIAL UNLIKE CONSUMERDEBT COLLECTORS COMMERCIAL AGENCIES HAVE RECEIVED LITTLE ATTENTION AND ARE NOT FEDERALLY REGULATED LOUISIANA AND FLORIDA HAVE ENCOUNTERED A NUMBER OF PROBLEMS WITH COMMERCIALDEBT COLLECTORS BECAUSE THOSE STATES' OVERSIGHT HAS BEEN ESPECIALLY LAX LAWMAKERS AND INDUSTRY OFFICIALS SAY THE FBI SAYS IT EXPECTS SOON TO SEEK MAILFRAUD INDICTMENTS OF NATIONWIDE PROGRESSIVE RECOVERY SYSTEMS INC A NEW ORLEANS COMMERCIAL COLLECTOR FOR ALLEGEDLY POCKETING HUNDREDS OF THOUSANDS OF DOLLARS IN DEBTS RETRIEVED FOR SCORES OF CLIENTS FRANK DESALVO A NEW ORLEANS ATTORNEY REPRESENTING THE COMPANY'S OWNER PERFECTO BOBADILLA DECLINES TO COMMENT ON THE FBI'S INVESTIGATION ANOTHER LOUISIANA COMMERCIALDEBT COLLECTION FIRM MILLIKEN & MICHAELS INC IN METAIRIE DESCRIBES ITSELF AS THE FASTESTGROWING PRIVATELY HELD COMMERCIALCOLLECTION AGENCY IN THE COUNTRY IN 1991 THE NORTH CAROLINA DEPARTMENT OF INSURANCE FINED M&M 50000 THE LARGEST FINE EVER LEVIED BY THE STATE AGAINST A COMMERCIAL COLLECTOR THE FINE WAS FOR VARIOUS COLLECTION PRACTICES WHICH ALLEGEDLY INCLUDED HARASSMENT STATE OFFICIALS SAY M&M DENIES ANY WRONGDOING IN THE NORTH CAROLINA ACTION SAYING IT SETTLED TO AVOID A PROTRACTED LEGAL BATTLE IN AN INTERVIEW RICHARD MITCHELL PRESIDENT OF THE BETTER BUSINESS BUREAU IN NEW ORLEANS DESCRIBED M&M AS ONE OF THE BAD GUYS AMONG LOUISIANA COLLECTORS HE SAID THAT IN THE PAST THREE YEARS THE BBB HAS RECEIVED MORE THAN A DOZEN COMPLAINTS ABOUT M&M ALLEGING THAT IT POCKETED DEBTS AND HARASSED DEBTORS NATIONWIDE M&M DESCRIBES MR MITCHELL'S CHARACTERIZATION AS ABSURD MICHAEL SANDERSON M&M'S PRESIDENT SAYS WE ARE ACCUSED OF WRONGFUL ACTS ALL THE TIME AND ARE NEVER GIVEN AN OPPORTUNITY TO DEFEND OURSELVES AND THE BBB'S MR MITCHELL AFTER BEING CONTACTED BY M&M'S ATTORNEY SENT A FAX TO M&M DENYING THAT HE HAD DESCRIBED THE COMPANY NEGATIVELY M&M FORWARDED THE FAX TO THIS NEWSPAPER WHEN REINTERVIEWED MR MITCHELL SAID HE COULDN'T REMEMBER HOW HE DESCRIBED THE COMPANY LOUISIANA AND FLORIDA RECENTLY PASSED LEGISLATION REQUIRING STRICTER OVERSIGHT OF COMMERCIAL COLLECTORS THOUGH PROVISIONS OF THE LAWS HAVE YET TO BE ENFORCED NONETHELESS THE COMMERCIAL COLLECTION AGENCY AND OTHERS SAY A HODGEPODGE OF STATE LAWS MAKES IT EASY FOR QUESTIONABLE OPERATORS TO SIMPLY RELOCATE TO BE SURE MANY REPUTABLE COLLECTION AGENCIES HELP SMALL BUSINESSES MANAGE CREDIT AND CASH FLOW MORE EFFECTIVELY AND MANY INDUSTRY WATCHERS BELIEVE STRICTER LICENSING REQUIREMENTS AND OVERSIGHT WILL HELP KEEP SHADY OPERATORS OUT OF THE BUSINESS WHEN THE IMAGE OF OUR INDUSTRY SUFFERS AND OUR CLIENTS' CONFIDENCE IS LOW IT SHRINKS OUR MARKET SAYS DAVID HERER PRESIDENT OF AMERICAN BUREAU OF COLLECTIONS INC A BUFFALO NY CONCERN WITH 64 YEARS OF EXPERIENCE WE DON'T ENJOY BEING REGARDED AS FLYBYNIGHT OPERATORS HE CONTINUES COLLECTION SPECIALISTS RECOMMEND THAT SMALL BUSINESSES MAKE SURE A COMMERCIAL COLLECTOR IS LICENSED AND BONDED HAS REFERENCES AND CAN PROVE FINANCIAL STABILITY ROBERT KONDNER PRESIDENT OF APPLIED DATA SYSTEMS INC A BALTIMORE MAKER OF VIDEODISPLAY PARTS ADVISES SMALL BUSINESSES TO BE PARTICULARLY CAREFUL ABOUT TELEPHONE SOLICITATIONS FROM DEBT COLLECTORS A PHONE CALL LAST DECEMBER LED MR KONDNER TO HIRE CAPITAL COLLECTION CORP OF NORTH MIAMI BEACH FLA HE SAYS THAT CAPITAL DISAPPEARED AFTER COLLECTING 500 AND THAT HE HAS SPENT THE LAST YEAR UNSUCCESSFULLY TRYING TO FIND THE NOWDEFUNCT AGENCY PHILLIP L NEWCOMB A NORTH MIAMI BEACH LAWYER WHO WAS A CAPITAL PRINCIPAL DECLINES TO COMMENT HOW SHOULD SMALLBUSINESS OWNERS HANDLE SUSPICIOUS PITCHES FROM DEBT COLLECTORS KEEP THEM ON THE PHONE AS LONG AS YOU CAN SO YOU CAN WASTE THEIR TIME MR KONDER SUGGESTS BUT NEVER BUY ANYTHING FROM THEM 9312100126 931210 CORPORATE FOCUS MELLON IS OUT TO PROVE THE VALUE OF ITS BIGTICKET BUY DREYFUS ACQUISITION WAS SPURNED BY BANC ONE AS TOO CUMBERSOME A DEAL BY GABRIELLA STERN AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL BANC ONE CORP CONSIDERED BUYING DREYFUS CORP A FEW MONTHS AGO BUT CONCLUDED IT WAS TOO BIG AN UNDERTAKING AND WALKED AWAY MELLON BANK CORP LOOKED AT DREYFUS AND SAW A BIG OPPORTUNITY IT COULDN'T RESIST IN THE AFTERMATH OF MELLON'S 17 BILLION AGREEMENT THIS WEEK TO ACQUIRE THE MUTUALFUND COMPANY THERE ARE LINGERING QUESTIONS WHOSE JUDGMENT WAS MORE ACCURATE DOES MELLON HAVE WHAT IT TAKES TO TURN STAID DREYFUS INTO A FASTPACED MUTUALFUND WINNER OR WILL MELLON CHOKE ON DREYFUS ESPECIALLY AS IT TRIES TO ABSORB ANOTHER MEGADEAL THE 145 BILLION ACQUISITION EARLIER THIS YEAR OF BOSTON CO FROM AMERICAN EXPRESS CO'S SHEARSON UNIT WHILE THE JURY'S STILL OUT MANY ON WALL STREET FEEL MELLON HAS MADE A GUTSY MOVE THAT WILL TAKE THE PITTSBURGH BANK FAR BEYOND ITS TRADITIONAL LENDING BASE THERE'S CONCERN ABOUT THE DILUTION MELLON IS TAKING AND THEIR ABILITY TO INTEGRATE DREYFUS RIGHT ON THE HEELS OF BOSTON CO SAYS FRANK BARKOCY AN ANALYST WITH ADVEST INC BUT IT BRINGS THEM IN VERY QUICK FASHION INTO A HIGH LEVEL OF FEE EARNINGS HE ADDS CALLING THE ACQUISITION A GOOD MOVE UNDER PRESSURE FROM INVESTORS MELLON MUST MOVE QUICKLY TO PROVE ITSELF AND IF THE WAY THE BANK HAS OPERATED IN THE PAST IS ANY INDICATION DREYFUS CAN EXPECT SOME SWIFT CHANGES MELLON'S CHAIRMAN FRANK V CAHOUET HAS ALREADY SAID HE WILL TRIM ABOUT 60 MILLION IN COSTS OVER TWO YEARS WITH THE EXPENSE SAVINGS COMING FROM BOTH DREYFUS AND THE BANK HE ALSO WANTS DREYFUS TO CHANGE ITS PORTFOLIO TO INCLUDE MORE STOCK FUNDS AND PLANS TO MESH PRODUCTS FROM BOTH COMPANIES THERE IS A GOOD REASON WHY THE 61YEAROLD WHO JOINED MELLON IN 1987 IS KNOWN AS A HANDSON PENNYPINCHING MANAGER IN HIS FIRST YEAR OR SO AT MELLON WHICH WAS SINKING UNDER A MORASS OF BAD LOANS HE ELIMINATED MORE THAN 3700 JOBS OR 18 OF THE WORK FORCE AND IMPOSED STRICT SPENDING LIMITS ONCE EVEN BANNING ALL ORDERS OF NEW OFFICE SUPPLIES MOREOVER MR CAHOUET SAYS HE INTENDS WORKING WITH MR STEIN TO ENERGIZE THE DREYFUS CULTURE THROUGH LEADERSHIP WHICH SAY SOME OUTSIDERS HAS BEEN LACKING AT THE NEW YORKBASED CONCERN THE COMPANY HAS BEEN UNDERMANAGED SAYS JON FOSSEL CHAIRMAN OF RIVAL FUND COMPANY OPPENHEIMER MANAGEMENT CORP ONE WAY OR ANOTHER THAT ORGANIZATION WILL NEED TO BE MANAGED MUCH MORE AGGRESSIVELY AMONG THE BIGGEST CHALLENGES IS MERGING TWO DISTINCT CULTURES AT BUTTONDOWN MELLON TOP MANAGERS ARRIVE AT WORK BY 7 AM AND ROUTINELY PUT IN 12HOUR DAYS WHILE LIFE AT DREYFUS IS LESS INTENSE DREYFUS CHAIRMAN HOWARD STEIN WHO DOES A LOT OF WORK FROM HIS SOUTHERN CALIFORNIA HOME USUALLY ISN'T IN THE OFFICE ON FRIDAYS BUT IS CONSTANTLY ON THE PHONE TO HIS STAFF ACCORDING TO FORMER EMPLOYEES I DON'T THINK MELLON KNOWS WHAT IT HAS GOTTEN ITSELF INTO SAYS MARY RUDIE BARNEBY A FORMER DREYFUS EXECUTIVE WHO IS NOW AT A UNIT OF UNITED ASSET MANAGEMENT CORP MELLON IS A BIG TECHNOLOGYDRIVEN ORGANIZATION AND DREYFUS IS VERY MUCH LIKE A FAMILYRUN COMPANY IN THE PAST MELLON HAS BEEN HIT WITH SOME UNPLEASANT SURPRISES IN BIG VENTURES AFTER ACQUIRING BOSTON CO FOR EXAMPLE MELLON LEARNED THAT THE MONEYMANAGEMENT AND TRUST CONCERN'S BIGGEST MUTUALFUND ADMINISTRATION CUSTOMER WAS TRYING TO PULL ITS BUSINESS DESPITE A PREEXISTING CONTRACT THE DISPUTE WITH PRIMERICA CORP'S SMITH BARNEY SHEARSON UNIT IS IN FEDERAL COURT MELLON RECENTLY WON A PRELIMINARY INJUNCTION BARRING SMITH BARNEY SHEARSON FROM DIVERTING ITS BUSINESS AWAY FROM BOSTON CO BANC ONE ALSO LOOKED AT BOSTON CO IN 1992 BUT SAYS CHAIRMAN JOHN B MCCOY IT LIKE DREYFUS SEEMED TOO LARGE AN ACQUISITION THEY WERE IN A BUSINESS WE DIDN'T UNDERSTAND HE SAYS MELLON WHICH ALREADY HAD SIZABLE MONEYMANAGEMENT AND TRUST BUSINESSES IS INTEGRATING BOSTON CO INTO ITS OWN OPERATIONS THE BANK HAS MOVED SWIFTLY TO REDUCE EXPENSES AND CONSOLIDATE COMPUTER SYSTEMS MOST TOP BOSTON CO MANAGERS REMAIN ON BOARD MELLON PLANS TO LEAVE DREYFUS INTACT AS A FREESTANDING ORGANIZATION IN NEW YORK MR STEIN AND DREYFUS PRESIDENT JOSEPH DIMARTINO WILL SERVE WITH MR CAHOUET AND MELLON VICE CHAIRMAN W KEITH SMITH ON AN EXECUTIVE COMMITTEE TO OVERSEE DREYFUS OPERATIONS DREYFUS WILL HAVE THREE SEATS ON MELLON'S BOARD BUT EVERY TRIBE HAS A CHIEF AND MR CAHOUET IS ALREADY PLOTTING STRATEGY THERE'S NO MISTAKING WHO'S IN CONTROL MR BARKOCY SAYS FOR ONE THING MR CAHOUET SAYS DREYFUS WILL ACCELERATE THE EXPANSION OF ITS PORTFOLIO INTO EQUITY FUNDS DREYFUS'S ASSET GROWTH HAS LAGGED BEHIND THE INDUSTRY IN RECENT YEARS BECAUSE 55 OF ITS ASSETS ARE IN LOWYIELD MONEYMARKET FUNDS MOREOVER MR CAHOUET WANTS TO MAXIMIZE THE RETURN ON SOME 718 MILLION IN CASH DREYFUS BRINGS TO THE TABLE IN THE SHORT TERM HE SAYS THE MONEY MAY BE PUT INTO GOVERNMENT SECURITIES LATER IT COULD BE AVAILABLE TO LEND OR TO USE FOR AN ACQUISITION THOUGH SOME INVESTORS ALREADY ARE SKITTISH ABOUT MELLON TAKING ON TOO MUCH SAYS LIVIA ASHER AN ANALYST WITH MERRILL LYNCH INDEED THE DECISION ABOUT THE EXTRA CASH SEEMS TO BE ENTIRELY MELLON'S WHEN QUERIED ABOUT HOW IT WILL BE USED MR STEIN SAID THERE'S SOME PROGRAM BY WAY OF INVESTMENT IT'S CAHOUET'S IDEA TALK TO HIM MELLON ALSO TALKS OF MESHING THE TWO COMPANIES' PRODUCTS EVENTUALLY DREYFUS AND MELLON CUSTOMERS WILL BE ABLE TO SET UP MUTUAL FUNDS CHECKING ACCOUNTS AND 401K TAXFREE SAVINGS PLANS AND GET PERSONAL INVESTMENT ADVICE IN A SINGLE VISIT OR PHONE CALL SAYS MR CAHOUET WE LIKE THE INDIVIDUAL CUSTOMER BUT WE DON'T CARE WHETHER WE'VE GOT YOUR CHECKING ACCOUNT OR YOUR MUTUAL FUND WE WANT BOTH MELLON HOPES THAT IN THE PROCESS OF CROSSSELLING PRODUCTS IT WILL FIND SYNERGIES WHICH WILL SAVE COSTS THE COMPANIES ARE LIKELY TO SHARE BACKOFFICE PROCESSING TECHNOLOGY BOSTON CO COULD EVENTUALLY BE ENLISTED TO PROVIDE ADMINISTRATIVE SERVICES TO DREYFUS FUNDS THE COMPANIES ALSO WILL SHARE EACH OTHER'S CUSTOMER LISTS TO PUSH PRODUCTS MELLON'S STOCK MAY BE RECOVERING A BIT FROM THE BEATING IT TOOK IMMEDIATELY AFTER MONDAY'S ANNOUNCEMENT IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MELLON SHARES ROSE 1125 TO 53 AND DREYFUS'S STOCK ROSE 1125 TO 46625 IT IS AN AWFULLY BIG BITE FOR MELLON SAYS DAVID KIRK A MONEY MANAGER AT BOSTONBASED DAVID L BABSON & CO WHO OWNS MELLON SHARES HOWEVER MR KIRK ISN'T SELLING HIS SHARES AND BETS MELLON'S PURCHASE WILL PAY OFF IN A COUPLE YEARS ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE 9312100125 931210 INTERNATIONAL METALLGESELLSCHAFT SHARES DECLINE 26 FRANKFURT SHARES IN GERMAN CONGLOMERATE METALLGESELLSCHAFT AG FELL 26 IN AN OTHERWISE BUOYANT STOCK MARKET YESTERDAY AMID DOUBTS OVER CHAIRMAN HEINZ SCHIMMELBUSCH'S ABILITY TO STEER THE TROUBLED COMPANY OUT OF ITS CURRENT FINANCIAL CRISIS MEMBERS OF THE SUPERVISORY BOARD DENIED NEWS REPORTS THAT MR SCHIMMELBUSCH IS BEING SUPERVISED BY A PANEL OF OUTSIDE ADVISERS AND HAS BEEN PUT ON PROBATION BECAUSE OF THE COMPANY'S RECENT PLUNGE INTO RED INK ANALYSTS SAID THAT A FEW YEARS AGO MR SCHIMMELBUSCH HAD PLEDGED TO CHANGE METALLGESELLSCHAFT FROM A METALS AND TRADING COMPANY INTO A CUTTINGEDGE ENVIRONMENTALTECHNOLOGY COMPANY BUT HE HAS YET TO DELIVER AFTER ANNOUNCING AN UNEXPECTED TUMBLE TO A LOSS OF 347 MILLION MARKS 2036 MILLION FOR THE YEAR ENDED SEPT 30 METALLGESELLSCHAFT EARLIER THIS WEEK HAD TO RUN TO DEUTSCHE BANK AG AND DRESDNER BANK AG FOR ADDITIONAL FINANCING LINES TO COVER A LIQUIDITY CRISIS MEANWHILE IN ANOTHER MOVE TO RAISE CASH METALLGESELLSCHAFT SAID IT WAS REDUCING ITS STAKE IN ITS METALL MINING CORP SUBSIDIARY IN CANADA TO 501 FROM 644 RAISING 124 MILLION CANADIAN DOLLARS US937 MILLION THE CANADIAN UNIT ITSELF IS SELLING ITS MINORITY STAKE IN MIM HOLDINGS LTD OF AUSTRALIA IN A TRANSACTION THAT IF ALL OPTIONS ARE EXERCISED WOULD GENERATE 439 MILLION AUSTRALIAN DOLLARS US2954 MILLION FOR THE 138 STAKE 9312100123 931210 NATWEST MIDLAND TO START SMART' CARD FOR SMALL PAYMENTS BANKING WILL BECOME POSSIBLE FOR MULTIPLE CURRENCIES WITHOUT HANDLING CASH BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A MOVE THAT WILL BRING THE CASHLESS SOCIETY ONE STEP CLOSER NATIONAL WESTMINSTER BANK PLC AND MIDLAND BANK PLC PLAN TO LAUNCH AN ELECTRONIC SMART CARD ABLE TO HANDLE PAYMENTS FOR A HOST OF SMALL TRANSACTIONS MONDEX AS THE PRODUCT IS KNOWN WILL CONSIST OF A PLASTIC CARD EQUIPPED WITH A MICROCHIP THROUGH WHICH FUNDS CAN BE ELECTRONICALLY CREDITED AND DEBITED WHEN NEEDED NATWEST SAYS IT IS TALKING TO US BANKS THAT ARE INTERESTED IN INTRODUCING MONDEX IN THE US AFTER IT'S LAUNCHED IN BRITAIN BUT IT'S TOO EARLY TO PREDICT A TARGET DATE THE PROJECT IS PART OF AN INTERNATIONAL TREND AMONG BANKS TOWARD SEEKING ELECTRONIC SOLUTIONS FOR SMALL PAYMENTS A SOCALLED ELECTRONIC PURSE IN PLACE OF CASH WHICH IS INCREASINGLY EXPENSIVE TO HANDLE IN DENMARK BANKS HAVE SUCCESSFULLY TESTED AN ELECTRONICPURSE PRODUCT AND OTHER PROJECTS ARE UNDER WAY IN PORTUGAL AND BELGIUM MONDEX DIFFERS FROM THESE IN THAT IT IS DESIGNED AS A MULTICURRENCY PRODUCT CAPABLE OF STORING VALUE IN AS MANY AS FIVE CURRENCIES SIMULTANEOUSLY A NATWEST OFFICIAL SAID THE UK BANK IS CONFIDENT THAT ITS TECHNOLOGY IS 15TO18 MONTHS AHEAD OF THE COMPETITION INVESTMENT ANALYSTS EXPRESSED SOME SKEPTICISM ABOUT THE COMMERCIAL VALUE OF THE PROJECT I CAN'T SEE HOW IT IS GOING TO BE A GREAT ADVANCE ON THE ELECTRONIC AUTHORIZATION OF TRANSACTIONS BY SWITCH NATWEST'S EXISTING DEBIT CARD SAID IAN MCEWEN AN ANALYST AT MERRILL LYNCH IN LONDON HOWEVER NATWEST AND MIDLAND OFFICIALS MADE PLAIN THE BANKS EXPECT TO MAKE MONEY OUT OF THE VENTURE WE ARE A COMMERCIAL ORGANIZATION AND WE WILL BE LOOKING TO MAKE A RETURN ON THE INVESTMENT A NATWEST SPOKESMAN SAID INDUSTRY ANALYSTS PREDICT THAT CARD TECHNOLOGY WILL PROGRESS TO A POINT WHERE CARDHOLDERS CAN USE A SINGLE CARD FOR A VARIETY OF FUNCTIONS INCLUDING BOTH CREDITS AND DEBITS AND FOR SMALL PAYMENTS AS PROPOSED BY MONDEX IN ITS INITIAL STAGES MONDEX ISN'T INTENDED TO REPLACE EXISTING DEBIT OR CREDIT CARDS BUT RATHER TO OPERATE ALONGSIDE THEM CARDHOLDERS WILL BE ABLE TO USE THEIR CARDS IN SPECIALLY ADAPTED POINTOFSALE TERMINALS IN STORES AND OTHER LOCATIONS IN THE SAME WAY AS EXISTING DEBIT OR CREDIT CARDS NO SIGNATURE OR AUTHORIZATION WILL BE NEEDED AND THE VALUE OF THE TRANSACTION WILL MOVE ELECTRONICALLY FROM THE CARD TO THE TERMINAL RETAILERS WILL BE ABLE TO TRANSFER THE VALUE OF ACCUMULATED MONDEX TRANSACTIONS TO THEIR OWN BANK ACCOUNT AS THEY WISH USING TELEPHONE LINKS THE PROJECT FOLLOWS A VISA AND MASTERCARD/EUROPAY PLAN TO WORK TOGETHER TO DEVELOP AN INTERNATIONAL STANDARD FOR THE USE OF SMART CARDS SUCCESSFUL INTEGRATION OF THE VARIOUS NATIONAL ELECTRONIC PURSE PROJECTS ON A EUROPEAN SCALE USING SMARTCARD TECHNOLOGY WOULD BE A MAJOR STEP TOWARD SUCH A STANDARD INDUSTRY ANALYSTS SAY IT WOULD BE EXTREMELY SIGNIFICANT IN THAT IT WOULD COMPLETE THE RANGE OF CARD OFFERINGS AVAILABLE FOR COMMERCIAL TRANSACTIONS SAID RICHARD MARTIN THE EDITOR OF ELECTRONIC PAYMENTS INTERNATIONAL A TRADE PUBLICATION THE AIM OF THE BANKS IS TO HAVE A RANGE OF CARDS THAT WILL EVENTUALLY COVER ALL THE PAYMENTS OPTIONS IN BRITAIN NATWEST AND MIDLAND AIM TO INTRODUCE MONDEX IN 1995 STARTING IN SWINDON IN SOUTHERN ENGLAND NATWEST SAID IT INTENDS TO INVITE OTHER INSTITUTIONS IN THE UK TO JOIN IN DUE COURSE INTERNATIONALLY NATWEST PLANS TO ENLIST OTHER MAJOR INSTITUTIONS AS PARTNERS IN A NEW COMPANY MONDEX INTERNATIONAL IN WHAT NATWEST GROUP CHIEF EXECUTIVE DEREK WANLESS CLAIMS WOULD BE A MAJOR COMMERCIAL OPPORTUNITY FOR BANKS EVERYWHERE THE INITIATIVE HE PREDICTED COULD BECOME THE BASIS FOR DEVELOPMENT OF A TRULY GLOBAL PAYMENT SYSTEM IN COMMERCIAL TERMS NATWEST OFFICIALS SAID THE BANK WOULD MARKET MONDEX THROUGH FRANCHISE AGREEMENTS WITH OTHER BANKS MIDLAND OFFICIALS SAID THEY EXPECT THE HSBC GROUP WITH ITS GLOBAL REACH IN ASIA AND NORTH AMERICA TO PLAY A LEADING ROLE FEATURES OFFERED BY MONDEX INCLUDE A FACILITY WHEREBY CARDHOLDERS CAN LOCK THEIR CARDS ELECTRONICALLY AND THEN UNLOCK THEM USING A PERSONAL CODE CARDHOLDERS WILL BE EQUIPPED WITH POCKETSIZE ELECTRONIC WALLETS SHOWING HOW MUCH CASH IS AVAILABLE PLUS DETAILS OF THE PAST 10 TRANSACTIONS THEY WILL ALSO BE ABLE TO CHECK THEIR CASH BALANCE THROUGH BANKS' AUTOMATED TELLER MACHINES A NEW RANGE OF TELEPHONES NOW BEING DEVELOPED BY BRITISH TELECOMMUNICATIONS PLC AS WELL AS A SMALL KEYRINGSIZE PERSONAL READER 9312100122 931210 COMAIR NOVEMBER TRAFFIC ROSE CINCINNATI COMAIR HOLDINGS INC SAID 242099 PASSENGERS BOARDED ITS REGIONAL AIRLINE IN NOVEMBER UP 20 FROM 201129 A YEAR EARLIER REVENUE PASSENGER MILES INCREASED 38 TO 634 MILLION FROM 461 MILLION IN NOVEMBER 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 473 FROM 469 9312100121 931210 WHO'S NEWS WORDPERFECT PRESIDENT WILL STEP DOWN JAN 1 AS PART OF MANAGEMENT OVERHAUL BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL OREM UTAH WORDPERFECT CORP SAID ITS PRESIDENT AND CHIEF EXECUTIVE ALAN ASHTON WILL STEP DOWN JAN 1 AS PART OF MANAGEMENT CHANGES MEANT TO PUMP FRESH BLOOD INTO THE CLOSELYHELD SOFTWARE POWERHOUSE WORDPERFECT DESCRIBED THE MOVES AS A LONGPLANNED AND FRIENDLY TRANSITION THAT MR ASHTON A COFOUNDER OF WORDPERFECT HELPED TO DESIGN IT SAID THE CHANGES DON'T REFLECT ANY DISSATISFACTION WITH MR ASHTON'S DIRECTION OF THE COMPANY NOR DO THEY PORTEND ANY SIGNIFICANT SHIFTS IN STRATEGY HOWEVER MR ASHTON AND CHAIRMAN BRUCE BASTIAN WHOSE FAMILIES OWN MOST OF WORDPERFECT'S STOCK BOTH SAID THE OVERHAUL WILL PUT YOUNGER MORE AGGRESSIVE MANAGERS INTO POWER AT WORDPERFECT ENABLING IT TO BECOME MORE VISIBLE WITHIN THE INDUSTRY IN THE PAST WORDPERFECT HAS BEEN CRITICIZED BY SOME COMPUTER PUNDITS AND ANALYSTS FOR BEING SOMETHING OF AN INDUSTRY RECLUSE DESPITE ITS POSITION AS A MAKER OF THE WORLD'S TOPSELLING WORDPROCESSING SOFTWARE MR ASHTON WHO IS 51 YEARS OLD AND HAS 11 CHILDREN ACKNOWLEDGED THAT HE HAS NEVER HAD MUCH TIME FOR INTERACTING WITH OTHER INDUSTRY OFFICIALS OR ANALYSTS THAT ANALYSTS SAY MAY HAVE HINDERED WORDPERFECT'S PLAN TO SOMEDAY TAKE THE COMPANY PUBLIC WE'VE RECOGNIZED THE NEED FOR WORDPERFECT TO PRESENT A STRONGER FACE TO THE WORLD SAID MR BASTIAN WHO FOUNDED WORDPERFECT WITH MR ASHTON 14 YEARS AGO THAT FACE WILL BE ADRIAN RIETVELD'S MR RIETVELD THE COMPANY'S 39YEAROLD SENIOR VICE PRESIDENT WILL SUCCEED MR ASHTON AS CHIEF EXECUTIVE AND PRESIDENT MR ASHTON WILL BECOME COCHAIRMAN WITH MR BASTIAN IN ADDITION WORDPERFECT SAID IT WILL SET UP AN OFFICE OF THE PRESIDENT CONSISTING OF MR RIETVELD SENIOR VICE PRESIDENT JOHN C LEWIS AND GENERAL COUNSEL R DUFF THOMPSON THEY WILL SPLIT MANAGEMENT FUNCTIONS AMONG THEM ALTHOUGH MR RIETVELD WILL BE IN CHARGE IN AN INTERVIEW MR RIETVELD SAID HE PLANS NO MAJOR STRATEGIC SHIFTS BUT WILL PRESS FORWARD IN AREAS ALREADY IDENTIFIED AS ESSENTIAL TO CONTINUED GROWTH ONE OF THOSE WILL BE DEVELOPING PRODUCTS THAT RUN ON MICROSOFT'S WINDOWS OPERATING SYSTEM WORDPERFECT WAS ADMITTEDLY SLOW TO MARKET WITH CERTAIN WINDOWSRELATED PRODUCTS RECENTLY WHICH HURT THE COMPANY MOREOVER HE SAID THE COMPANY NEXT YEAR WILL ENTER THE CONSUMER MARKET WITH A LINE CALLED MAIN STREET WHICH WILL FEATURE SOFTWARE TARGETED AT HOMEOFFICE CUSTOMERS AS WELL AS NEW EDUCATIONAL AND ENTERTAINMENT SOFTWARE THIS IS ONE OF THE FASTEST GROWING SEGMENTS OF THE INDUSTRY AND WE INTEND TO BE A SIGNIFICANT PLAYER IN IT MR RIETVELD SAID MR BASTIAN SAID THE COMPANY IS STILL INTERESTED IN GOING PUBLIC AND WORDPERFECT'S OFFERING WOULD PROBABLY BE ONE OF THE HOTTEST HIGHTECH INITIAL PUBLIC OFFERINGS IN YEARS HE SAID THE MANAGEMENT CHANGES PUT US IN A POSITION WHERE WE COULD REALLY SELL THE ORGANIZATION AND THE MANAGEMET TEAM TO POTENTIAL INVESTORS HOWEVER HE ADDED THAT WE HAVE THE LUXURY OF NOT HAVING TO GO PUBLIC WHEN EVERYTHING JELLS WE'LL DO IT HE SAID WORDPERFECT DOESN'T DIVULGE MUCH FINANCIAL DATA IT HAD 1992 SALES OF 579 MILLION MR RIETVELD SAID THAT WE FEEL VERY CONFIDENT THAT 1993 SALES WILL BE MORE THAN THAT BUT HE DECLINED TO GIVE A SPECIFIC SALES ESTIMATE 9312100120 931210 LENNAR TO BUY REAL ESTATE LOANS MIAMI FLORIDA HOMEBUILDER LENNAR CORP AND A MORGAN STANLEY & CO REAL ESTATE FUND HAVE AGREED TO BUY A PORTFOLIO OF REAL ESTATE LOANS WITH A BOOK VALUE OF 165 MILLION FROM THE FEDERAL DEPOSIT INSURANCE CORP LENNAR SAID THE PORTFOLIO WAS PURCHASED AT A DISCOUNT AND CONSISTS OF 47 PERFORMING AND NONPERFORMING LOANS MOSTLY IN THE WASHINGTON DC AREA THIS IS THE SECOND TIME THAT MORGAN STANLEY A UNIT OF MORGAN STANLEY GROUP INC AND LENNAR HAVE JOINED FORCES TO PUCHASE A REAL ESTATE PORTFOLIO LAST YEAR THE TWO AGREED TO BUY A 900 MILLION FLORIDA REAL ESTATE PORTFOLIO FROM THE RESOLUTION TRUST CORP FOR 450 MILLION 9312100119 931210 ECONOMY INCREASED SALES AND GROWING OPTIMISM ARE FOUND IN SURVEY OF MIDSIZE FIRMS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL MOST MIDSIZE MANUFACTURING COMPANIES INCREASED SALES IN EACH OF THE PAST THREE MONTHS AND A GROWING NUMBER EXPECT A BROAD ECONOMIC RECOVERY IN THE SECOND HALF OF NEXT YEAR ACCORDING TO A RECENT SURVEY THE TELEPHONE POLL OF 253 EXECUTIVES FOUND GREATER CONFIDENCE IN THE ECONOMY NOW THAN SIX MONTHS AGO WHEN A SIMILAR POLL WAS UNDERTAKEN SAID GRANT THORNTON AN ACCOUNTING AND MANAGEMENT CONSULTING FIRM ONLY 29 THEN VS 46 NOW THOUGHT THE ECONOMY HAD ENTERED INTO OR WAS WELL ON ITS WAY TO A RECOVERY UNCERTAINTY OVER THE DIRECTION OF THE ECONOMY HOWEVER REMAINED HIGH AND THERE WAS LITTLE INDICATION MANY NEW JOBS WOULD BE CREATED DESPITE FALLING FROM THE 56 LEVEL NEARLY HALF 46 OF THE SURVEYED EXECUTIVES STILL AREN'T SURE WHETHER THE ECONOMY IS TEETERING TOWARDS RECESSION OR RECOVERY MOST MANUFACTURERS DISAGREE WITH AND ARE CONCERNED ABOUT THE IMPACT OF GOVERNMENT ECONOMIC POLICIES ACCORDING TO THE GRANT THORNTON STUDY AND A SIMILAR POLL BY CONTINENTAL BANK BOLSTERING CONFIDENCE ARE STRONGERTHANEXPECTED AUTO AND CHRISTMAS SALES SAID ECONOMISTS AND MANUFACTURERS CHICAGOBASED STROMBECKER CORP FOR INSTANCE RECEIVED A FLURRY OF ORDERS FOR ITS LINE OF TOYS IN THE PAST FEW WEEKS FROM RETAILERS DANIEL SHURE PRESIDENT SAID BECAUSE THAT'S DRAINING THE COMPANY OF ITS INVENTORY OF FINISHED GOODS FACTORIES EMPLOYING 500 PEOPLE IN THE US WILL REMAIN OPEN AFTER THE NEW YEAR INSTEAD OF CLOSING FOR TWO MONTHS AS IS CUSTOMARY AND DOUGLAS LEE CHIEF ECONOMIST FOR NATWEST SECURITIES CORP SAID THE MANUFACTURING SECTOR AS A WHOLE IS LOOKING BETTER PARTLY BECAUSE A LOT OF MIDSIZED COMPANIES ARE SUPPLIERS TO THE AUTO INDUSTRY HE EXPECTS SUCH DEMAND WILL CONTINUE BECAUSE AUTO COMPANIES HAD LET INVENTORIES GET TOO LOW AT ABAR IPSEN INDUSTRIES A PHILADELPHIAAREA COMPANY THAT MAKES INDUSTRIAL FURNACES A RECOVERY IS OCCURRING BUT AT AN EXCRUCIATINGLY SLOW PACE SAID MALCOLM MOORE PRESIDENT IN A RECESSION HE SAID A COMPANY LIKE HIS IS FIRST TO GO IN AND LAST TO COME OUT BECAUSE CUSTOMERS OFTEN DELAY SUCH PURCHASES IN HARD TIMES AND WHILE IT IS ENCOURAGING THAT WE ARE GETTING OVER THE LASTOUT PHASE HE SAID BUSINESS IS SLOWLY GROWING ONLY BECAUSE A GOOD PORTION OF OUR CUSTOMERS STILL ARE SCRAMBLING TO REDUCE COSTS TO OFFSET PROFITMARGIN EROSION EVEN WHERE COMPANIES ARE SEEING STRONG SALES GROWTH THEY ARE FACING PRICING PRESSURE THAT USUALLY DOESN'T OCCUR IN A RECOVERY SAID JOSEPH COONS CHIEF ECONOMIST AT HUNTINGTON NATIONAL BANK COLUMBUS OHIO HE RECENTLY MET WITH MANUFACTURERS IN CINCINNATI WHERE ONE PLUMBINGSUPPLY EXECUTIVE SAID A CUSTOMER HAD ASKED HIM TO PRESENT A PRICE BID FOR AN ORDER THE POTENTIAL CUSTOMER THEN SENT A LIST OF WHAT COMPETITORS WERE CHARGING TO HEIGHTEN THE COMPETITION GRUMBLING ABOUT WASHINGTON IS ALSO GETTING LOUDER AMONG MANUFACTURERS FOR INSTANCE SALES AT HUTCHINSON TECHNOLOGY A 200MILLIONAYEAR DISKDRIVE MANUFACTURER BASED IN HUTCHINSON MINN ARE AHEAD 15 THIS YEAR THANKS TO EXPANDING OVERSEAS AND DOMESTIC MARKETS IN INFORMATION TECHNOLOGY BUT JEFFREY GREEN CHAIRMAN SAID WE MAY HAVE A MODEST ECONOMIC RECOVERY UNDER WAY BUT THINK OF WHAT IT COULD HAVE BEEN IF WE HAD THE CORRECT INVESTMENT INCENTIVES SUCH AS LOWER CAPITALGAINS TAXES IN ITS SURVEY OF EXECUTIVES FROM 100 CHICAGOAREA MANUFACTURING COMPANIES CONTINENTAL BANK THIS WEEK SAID 61 BELIEVED PRESIDENT CLINTON'S PROPOSED ECONOMIC PLANS WILL HURT THEIR BUSINESS WHILE ONLY SIX SUPPORTED THEM STILL THE VAST MAJORITY 83 FELT BUSINESS WOULD IMPROVE OR AT LEAST REMAIN THE SAME IN 1994 MICHAEL CANTWELL A PARTNER OF GRANT THORNTON SAID OWNERS OF SMALL AND MEDIUMSIZED MANUFACTURERS ARE RESTRAINED IN THEIR OPTIMISM BECAUSE OF THE IMPACT OF HIGHER TAXES EARNINGS OF AN S CORPORATION ONE WITH FEWER THAN 35 OWNERS ARE TAXED THE SAME AS INDIVIDUAL WAGE EARNERS WHOSE MAXIMUM RATE HAD BEEN LOWER THAN THE STANDARD CORPORATE RATE UNDER THE NEW TAX LAW THE MAXIMUM RATE ON INDIVIDUALS WILL BE HIGHER THAN THE CORPORATE RATE THIS AFFECTS THOUSANDS AND THOUSANDS OF SMALL AND MEDIUMSIZED CORPORATIONS A LOT OF WHICH ARE IN MANUFACTURING MR CANTWELL SAID IN ADDITION MANUFACTURERS ARE CONCERNED THAT PROPOSED HEALTHCARE REFORM WILL BE THE START OF A NEW WAVE OF MANDATED REGULATIONS FROM ENVIRONMENT TO LABOR SAFETY AND LABOR RELATIONS HE SAID SOME MANUFACTURERS THANK THE TROUBLED ECONOMIC ENVIRONMENT FOR MAKING THEM TRY HARDER AT EFI ELECTRONICS IN SALT LAKE CITY MICHAEL GILCHRIST CHIEF FINANCIAL OFFICER SAID SALES ARE AHEAD 10 THIS YEAR FOR THE COMPANY'S LINE OF PRODUCTS THAT PROTECT ELECTRONIC EQUIPMENT FROM ELECTRICAL DISTURBANCES BUT THAT'S IN LARGE PART BECAUSE WE ARE BECOMING MORE ASTUTE IN OUR OWN MARKETING EFFORTS DUE TO THE LACK OF ECONOMIC VIGOR 9312100118 931210 CMS UNIT'S KENETECH VENTURE DEARBORN MICH CMS ENERGY CORP SAID ITS CMS GENERATION UNIT ACQUIRED FROM KENETECH CORP A 50 OWNERSHIP INTEREST IN A FACILITY THAT GENERATES ELECTRICITY FROM RECYCLED WASTE WOOD TERMS WEREN'T DISCLOSED THE PLANT LOCATED NEAR CHATEAUGAY NY BEGAN SELLING THE ELECTRIC OUTPUT IT GENERATES TO NEW YORK STATE ELECTRIC & GAS CORP IN MAY CMS GENERATION AND KENETECH WILL BE 5050 PARTNERS CMS WILL OPERATE THE FACILITY 9312100117 931210 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 325 30 TO 49 DAYS 323 50 TO 119 DAYS 325 120 TO 239 DAYS 335 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 339 30 DAYS 338 60 DAYS 338 90 DAYS CERTIFICATES OF DEPOSIT 264 ONE MONTH 268 TWO MONTHS 270 THREE MONTHS 277 SIX MONTHS 3 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 330 ONE MONTH 330 THREE MONTHS 338 SIX MONTHS BANKERS ACCEPTANCES 320 30 DAYS 320 60 DAYS 320 90 DAYS 322 120 DAYS 323 150 DAYS 324 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/8 3 1/4 ONE MONTH 3 3/8 3 1/4 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/8 ONE MONTH 3 3/8 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 607 JAPAN 3 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 6 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 327 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 695 60 DAYS 703 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 693 60 DAYS 703 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312100116 931210 WORLD MARKETS TOKYO'S ROLLERCOASTER PRICES ZIP 34 HIGHER ON POLITICAL JAWBONING STOCKFUTURES DEADLINE BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE TOKYO STOCKMARKET ROLLER COASTER TOOK A BIG UPSWING THURSDAY HELPED BY POLITICAL JAWBONING AND AN IMPORTANT STOCKFUTURES EXPIRATION BUT TRADERS NOTED A LOT OF CONFUSION IN THE MARKET AND DIDN'T DETECT ANY SIGN THAT PRICES WERE ENTERING A LONGTERM CLIMB THOUGH SOME OF THE VOLATILITY OF RECENT TRADING SESSIONS MAY EASE SOON THE NIKKEI 225STOCK INDEX CLOSED AT 1706191 UP 55396 POINTS OR 34 ON FRIDAY THE NIKKEI INDEX EASED 4171 POINTS TO CLOSE THE MORNING SESSION AT 1702020 THURSDAY'S VOLUME WAS LIGHT AT AN ESTIMATED 220 MILLION SHARES LESS THAN THE 2867 MILLION SHARES TRADED A DAY EARLIER THERE WERE 1015 GAINERS AND 65 DECLINERS THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 2454 POINTS WEDNESDAY SURGED 4120 OR SLIGHTLY MORE THAN 29 TO 143774 THURSDAY'S GAIN ON THE NIKKEI FOLLOWED THE PREVIOUS SESSION'S 395POINT LOSS TRADERS SAID THAT SUCH BIG DAILY SWINGS MAKE IT DIFFICULT TO GAUGE THE NEARTERM COURSE OF THE MARKET THE NIKKEI IS MOVING WITH TREMENDOUS VOLATILITY ON VERY LOW VOLUME BRIAN TOBIN DEPUTY GENERAL MANAGER OF EQUITY SALES AT SG WARBURG SECURITIES JAPAN INC SAID THAT MAKES IT HARD TO JUDGE THE UNDERLYING HEALTH OF THE MARKET A NIKKEI INDEX FUTURES CONTRACT EXPIRES FRIDAY AND STOCKFUTURES ARBITRAGE TRADERS HAVE BEEN BUSILY TURNING THEIR PORTFOLIOS OVER TO ADJUST TO A NEW CONTRACT THEIR ACTIVITY HAS HELPED KEEP THE MARKET ERRATIC OVER THE PAST TWO WEEKS SINCE NOV 24 THE NIKKEI HAS GAINED 215352 POINTS AND LOST 215872 FOR A NET LOSS OF 52 POINTS THE NIKKEI MAY CALM DOWN SOMEWHAT AFTER THE NEW CONTRACT STARTS TRADING FRIDAY BUT THE JITTERY MARKET IS STILL LIKELY TO REACT TO EACH POLITICAL DEVELOPMENT IN JAPAN PRICES ROSE SHARPLY THURSDAY FOR EXAMPLE WHEN BANK OF JAPAN GOV YASUSHI MIENO REPORTEDLY SAID THE JAPANESE CENTRAL BANK WAS WATCHING THE MARKET CAREFULLY MR MIENO DIDN'T OUTLINE ANY SPECIFIC NEW POLICIES THE COALITION GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA ALSO IS EXPECTED TO ANNOUNCE ECONOMIC STIMULUS MEASURES IN THE NEXT FEW WEEKS SPECULATION ABOUT THOSE POLICIES AND ABOUT THE GOVERNMENT'S STABILITY IN GENERAL MR HOSOKAWA'S FRAGILE POLITICAL ALLIANCE IS UNDER STRAIN BECAUSE OF A PROPOSAL TO LIFT A BAN ON RICE IMPORTS ALSO WILL AFFECT STOCK PRICES THERE ARE SO MANY COMPETING FACTORS AFFECTING STOCK PRICES NOW MR TOBIN OF WARBURG SAID THERE'S THE FUTURES EXPIRATION POLITICAL REFORM RICE THE ECONOMY FOR SOMEONE IN THE MARKET DAILY HE SAID IT'S NOT VERY MUCH FUN YET SOME ANALYSTS BELIEVE STOCK PRICES MAY RISE OVERALL IN THE NEXT QUARTER BEFORE JAPANESE COMPANIES CLOSE THEIR BOOKS FOR THE FISCAL YEAR JAPAN'S SLUMPING ECONOMY MAY SHOW THE FIRST SIGNS OF RECOVERY BEFORE THE FISCAL YEAR END THEY SAID THE GOVERNMENT ALSO WILL DO ITS UTMOST TO GET STOCK PRICES UP BEFORE THE END OF THE FISCAL YEAR SO THAT JAPANESE COMPANIES CAN OFFSET WEAK EARNINGS WITH GAINS IN THEIR STOCK PORTFOLIOS CRAIG CHUDLER STRATEGIST AT UBS SECURITIES LTD SAID MANY OF THE FOREIGN INVESTORS IN JAPAN ARE COUNTING ON JUST SUCH A BOOST THE MAJOR BET IS THAT IN THE NEXT QUARTER EVEN IF IT'S FROM GOVERNMENT MANIPULATION MAYBE THE MARKET WILL BUILD UP HE SAID THIS COULD MEAN A LOT OF SHORTTERM SELLING AFTER THE RISE THOUGH HE SAID WHICH COULD TAKE THE NIKKEI BACK DOWN THE ROLLER COASTER TRACKS LONDON STOCKS HAD A MIXED PERFORMANCE WITH THE MAIN INDEX SLIPPING PARTLY ON PROFITTAKING BUT FRANKFURT PRICES RALLIED 13 TO SET A RECORD HIGH FOR THE SECOND CONSECUTIVE SESSION AND HONG KONG SHARES ROCKETED UP 25 TO THEIR THIRD RECORD IN A ROW WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10995 UP 092 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6895 UP 293 OR 44 WITH NICHIRO OF JAPAN POSTING A 7 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 11793 DOWN 360 OR 3 WITH NOVELL OF THE US SLIDING 15 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 58 POINTS TO 32716 THE FT 30STOCK INDEX ROSE 85 POINTS TO 24629 VOLUME TOTALED 8843 MILLION SHARES COMPARED WITH 8212 MILLION SHARES A DAY EARLIER THE 100STOCK INDEX SHOT UP EARLY IN THE MORNING INVITING PROFITTAKING ESPECIALLY IN BANKING SHARES AS THE GAUGE REACHED A RECORD INTRADAY HIGH OF 33001 TECHNICAL FACTORS ALSO FEATURED IN DEALINGS AS A DROP IN THE DECEMBER FUTURES CONTRACT CAUSED A CORRECTION FOR STOCKS IN FRANKFURT THE DAX 30STOCK INDEX SURGED 2767 POINTS OR 13 TO A RECORD 217580 FOLLOWING A 15 JUMP WEDNESDAY THE CLOSING LEVEL WAS NEAR THE INTRADAY HIGH OF 217606 THE GAINS WERE ATTRIBUTED TO GERMAN LIQUIDITY AND TO PURCHASES OF BLUE CHIPS ON A TECHNICAL BASIS IN PARIS SHARES ROSE ON CONTINUING BULLISHNESS ABOUT A WORLD TRADELIBERALIZATION ACCORD BUT ENDED BELOW THE DAY'S HIGHS AS PARTICIPANTS CONTINUED TO TRACK DEVELOPMENTS IN TRADE TALKS IN AMSTERDAM FOLLOWING EARLY ADVANCES STOCKS SAGGED ON NEGATIVE COMMENTS ABOUT PROGRESS TOWARD A TRADE TREATY ADDING TO PRESSURE FROM A WEAKER DOLLAR AND LOWER LONDON AND NEW YORK STOCK PRICES BUT IN MILAN THE MARKET GAINED ON A BANK'S INITIAL PUBLIC OFFERING AND GENERALLY BULLISH SENTIMENT AND IN MADRID EQUITIES CLIMBED SHARPLY AS INVESTORS CAUGHT UP AFTER SPANISH HOLIDAY CLOSURES MONDAY AND WEDNESDAY IN MEXICO CITY SHARES GAVE UP 14 AS INVESTORS TOOK PROFITS FOLLOWING WEDNESDAY'S RECORDSETTING SESSION IN HONG KONG STOCKS WERE FUELED BY A FUTURESMARKET RALLY AND BY LIQUIDITY FROM A CONTINUOUS FLOW OF FUNDS INTO THE MARKET FROM OVERSEAS SHARES ALSO BENEFITED FROM STRENGTH ON EUROPEAN BOURSES A DAY EARLIER AND FROM OPTIMISM ABOUT A WORLD TRADE PACT THE MARKET'S SURGE VAULTED THE MAIN INDEX UP 81 SINCE LAST FRIDAY IN SYDNEY PRICES CLOSED MIXED WITH METAL AND RESOURCE ISSUES ESPECIALLY THOSE WITH EXPOSURE TO GOLD RISING STRONGLY BUT OTHER SECTORS SUCH AS MEDIA OIL AND NATURAL GAS WEAKENING IN SINGAPORE STOCKS CLIMBED BROADLY LED BY A 4 JUMP FOR THE FINANCIAL SECTOR DEALINGS WERE DRIVEN BY EXPECTATIONS OF SOLID EARNINGS FOR BANKING STOCKS BOUGHT HEAVILY BY FUNDS IN SEOUL THE MAIN INDEX GAINED SOLIDLY BUT DECLINING ISSUES OUTNUMBERED ADVANCING ISSUES AS SMALL STOCKS WERE HIT BY PROFITTAKING IN BANGKOK STOCKS SHOT UP 3 AS THE SET INDEX RALLIED 4371 POINTS TO A RECORD 148063 LED BY FINANCIAL AND PROPERTY STOCKS THE MARKET IS UP 66 THIS YEAR HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9312100115 931210 NOVA CORP PLANS TO ACQUIRE 24 OF METHANEX CORP BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL STREET JOURNAL CALGARY ALBERTA NOVA CORP OF ALBERTA UNVEILED A PLAN TO REPLACE NEW ZEALAND CONGLOMERATE FLETCHER CHALLENGE LTD AS THE CONTROLLING HOLDER OF A CANADIAN COMPANY THAT IS THE WORLD'S BIGGEST PRODUCER AND DISTRIBUTOR OF METHANOL IF THE COMPLEX TRANSACTION UNFOLDS AS PLANNED THE PIPELINE COMPANY WILL ACQUIRE A 24 INTEREST IN METHANEX CORP A VANCOUVER BRITISH COLUMBIA CHEMICALS COMPANY NOVA WILL THEREBY BECOME METHANEX'S THIRD MAJOR SHAREHOLDER IN LESS THAN A YEAR UNDER TERMS NOVA WILL HAND OVER ITS OWN METHANOL OPERATIONS TO METHANEX IN EXCHANGE FOR COMMON SHARES VALUED AT ABOUT 193 MILLION CANADIAN DOLLARS US1459 MILLION AND WILL PAY C185 MILLION 1398 MILLION IN CASH FOR ADDITIONAL METHANEX SHARES FLETCHER CHALLENGE SAID IT PLANS TO SELL 155 MILLION METHANEX SHARES TO NOVA WHILE THE REMAINDER OF ITS SHARES WILL BE SOLD FOR C6304 MILLION TO AN UNDERWRITING GROUP LED BY GORDON CAPITAL CORP TORONTO FOR RESALE TO THE PUBLIC FLETCHER CHALLENGE ACQUIRED 43 OF METHANEX IN MAY FOR ABOUT US730 MILLION REPLACING WEST GERMAN CONGLOMERATE METALLGESELLSCHAFT AG AS METHANEX'S BIGGEST SHAREHOLDER METALLGESELLSCHAFT WHICH RETAINED A 10 INTEREST IN METHANEX HAS ALSO AGREED TO SELL METHANEX SHARES TO NOVA AND PLANS TO REDUCE ITS HOLDING TO 6 PARADOXICALLY THE TRANSACTION IS LIKELY TO REDUCE NOVA'S NET METHANOL OUTPUT THE COMPANY IS GIVING UP A 100 INTEREST IN 11 MILLION METRIC TONS A YEAR OF METHANOL PRODUCTION FROM THREE ALBERTA PLANTS TO ACQUIRE A 24 INTEREST IN 37 MILLION TONS A YEAR OF COMBINED METHANOL PRODUCTION FROM WORLDWIDE OPERATIONS THAT METHANEX WILL CONTROL AFTER THE TRANSACTION CLOSES BUT FLETCHER CHALLENGE SEEMS TO THINK THAT NOVA HAS PULLED OFF A COUP IT IS WITH RELUCTANCE THAT WE ARE EXITING THE METHANOL BUSINESS A FLETCHER CHALLENGE SPOKESWOMAN SAID WE BUILT THAT COMPANY METHANEX UP FROM A REGIONAL BUSINESS INTO AN INTERNATIONAL PLAYER BUT SHE SAID THAT WITH NOVA BUYING INTO METHANEX FLETCHER CHALLENGE WOULD HAVE HAD TO SPEND 300 MILLION NEW ZEALAND DOLLARS US1664 MILLION TO RETAIN THE CONTROLLING BLOCK FLETCHER CHALLENGE ISN'T INTERESTED IN A MINORITY STAKE SHE SAID AND IS TRYING TO STRENGTHEN ITS BALANCE SHEET IN ORDER TO IMPROVE ITS CREDIT RATING FLETCHER CHALLENGE SAID IT SOLD ITS METHANEX STAKE FOR NZ1 BILLION THE AMOUNT INCLUDES SALES TO BOTH NOVA AND GORDON CAPITAL THE COMPANY PREDICTED THIS WILL RESULT IN A ONETIME GAIN OF NZ275 MILLION IT SAID IT MAY HAVE A FURTHER GAIN OF AS MUCH AS NZ55 MILLION UNDER TERMS OF THE TRANSACTION 9312100114 931210 CHINA A SPECIAL REPORT BUSINESS PLAN WORKERS WORKERS EVERYWHERE BUT HIRING AND KEEPING EMPLOYEES ESPECIALLY THE BEST OF THEM REQUIRES LOTS OF INGENUITY BY DANA MILBANK CHINA HAS TENS OF MILLIONS OF AVAILABLE WORKERS BUT STACY AND PAUL CONDRELL ARE HAVING TROUBLE FINDING JUST TWO FOR THEIR MAILORDER COMPANY THE CONDRELLS' BUSINESS HAS 22 CHINESE STAFFERS AT LEAST TWO FEWER THAN THEY NEED THOUGH THEY PAY TRIPLE THE GOING WAGE THEY HAVE A HARD TIME HIRING AND KEEPING EMPLOYEES AND GETTING WORK OUT OF THE ONES THEY DO MANAGE TO KEEP THE CONDRELLS' LABOR HEADACHES SAY MUCH ABOUT THE LABYRINTHINE WAYS OF CHINA'S EMPLOYMENT MARKET A PROBLEM THAT EVERYONE HOPING TO DO BUSINESS IN CHINA MUST FACE WANT ADS ARE RARE AND THE GOVERNMENT OFTEN BLOCKS FOREIGNERS FROM RECRUITING ANY WORKERS EXCEPT THE SLOUCHES IN ITS EXCESSLABOR POOL FORCING MANY EMPLOYERS TO HIRE ILLEGALLY PRIVATE BUSINESSES FIND IT DIFFICULT TO COMPETE WITH THE GOVERNMENT'S PROMISE OF LIFELONG EMPLOYMENT AND FREE HOUSING AND WHILE EMPLOYEES EARNING 5 A DAY MAY FEEL LIKE ROCKEFELLERS THAT DOESN'T NECESSARILY STOP THEM FROM SPITTING ON THE OFFICE FLOOR OR CHEATING THE BOSS THE CONDRELLS' PAYROLL TOTALS JUST 3000 A MONTH WITH ORDER CLERKS MOSTLY WOMEN IN THEIR EARLY 20S EARNING 100 AND THE CONDRELLS' CHINESE PARTNER MAKING 750 HEALTH LIFE DISABILITY AND PENSION BENEFITS ARE VIRTUALLY UNHEARDOF AMONG PRIVATE EMPLOYERS IN CHINA AND THERE'S NO SUCH THING AS SOCIAL SECURITY OR A MINIMUM WAGE THIS IS LAISSEZFAIRE LIKE YOU'VE NEVER SEEN IT MR CONDRELL SAYS ON THE OTHER HAND YOU GET WHAT YOU PAY FOR MR CONDRELL MUST KEEP AN EYE ON ONE OF HIS YOUNG WORKERS TO KEEP HER FROM SPITTING IN THE OFFICE WHICH ALSO HAPPENS TO BE HIS APARTMENT WORKERS FALL ASLEEP ON THE JOB SOME TRY TO SHIFT ORDERS ONTO COLLEAGUES TO LESSEN THEIR OWN LOADS THE CONDRELLS HAD TO SACK A DELIVERYMAN WHO OVERBILLED FOR HIS CAB RIDES AND TOOK BREAKS AT HOME BETWEEN DELIVERIES THEY HAVE HAD CASES OF OUTRIGHT SWINDLING AS WELL THEIR FORMER COMPUTER HAND WHEN ASKED TO TRANSLATE THEIR MAILING LIST INTO COMPUTER FILES COMPLAINED THAT IT WAS TOO MUCH WORK AND ASKED TO HAVE THE JOB CONTRACTED OUT TO A FRIEND THE FRIEND COPIED THE LIST TWICE TO MAKE THE JOB APPEAR DOUBLE ITS ACTUAL SIZE AND ALSO THREW OUT THOUSANDS OF NAMES WITHOUT ENTERING THEM WHEN THE SCAM WAS DISCOVERED THE CONTRACTOR DISAPPEARED SOON AFTERWARD THE CONDRELLS FIRED THE COMPUTER WORKER THE CONDRELLS BLAME THE WEAK WORK ETHIC ON COMMUNISM IN GOVERNMENT OFFICES WORKERS AND THEIR BOSSES OFTEN NAP PLAY POKER AND JEER AT PEOPLE WHO ACTUALLY TRY TO GET SOMETHING DONE THEY'RE NOT AMBITIOUS BECAUSE ALL JOBS ARE DEADEND AND ALL WORK IS TREATED THE SAME MR CONDRELL EXPLAINS CLIMBING THE LADDER' AND GOING PLACES' ARE NOT IN THE VOCABULARY A BIT OF CREATIVE MANAGEMENT HELPS TO COUNTERACT THE SLOTH IN BEIJING WHEN THE CONDRELLS HAD TO EMPLOY GOVERNMENT EXTRAS THEY SENT BACK THE WORST WORKERS AND PAID THE BETTER ONES AS MUCH AS SIX TIMES THEIR REGULAR SALARY IN INCENTIVE PAY IN GUANGZHOU THEY REMOVED THE WAREHOUSE BENCHES TO KEEP WORKERS ON THEIR FEET A MESSAGE ON THE OFFICE WALL REMINDS ALL EVERY CUSTOMER IS A MEMBER OF OUR FAMILY AND WE TREAT THEM LIKE ONE OF OUR OWN THE CONDRELLS SOMETIMES PITCH IN ALONGSIDE THEIR EMPLOYEES TAKING A TURN AT WATCHING THE COMPUTERS OR MOPPING THE FLOOR AT LUNCHTIME MR CONDRELL ORDERS FOOD FOR EVERYONE THEY DINE ON EEL TOFU AND VEGETABLES AS A LOUIS ARMSTRONG RECORDING PLAYS IN THE BACKGROUND THE CONDRELLS WHO SAY FLUENCY IN CHINESE IS CRUCIAL FOR EMPLOYERS JOKE WITH THEIR WORKERS AND TAKE THEM OUT TO MCDONALD'S TO BOWLING ALLEYS AND TO KARAOKE CLUBS WHERE THE AMERICANS THRILL THE CROWD BY SINGING A CHINESE ROCK SONG THE BIGGEST CHALLENGE FOR PRIVATE WESTERN EMPLOYERS IN CHINA THOUGH IS COMPETING WITH THE IDEA OF THE IRON RICE BOWL THE BELIEF THAT THE GOVERNMENT WILL CARE FOR ITS WORKERS FOREVER WE CAN'T GET A LOT OF PEOPLE OUT OF THE STATE COMPANIES BECAUSE THEY'RE AFRAID WE'LL GO UNDER OR THEY'LL BE FIRED MR CONDRELL SAYS THE CONDRELLS HAVE BEEN TRYING TO LURE A 40YEAROLD WOMAN FROM A STATE PUBLISHER IN BEIJING PROMISING HER A 20FOLD SALARY INCREASE TO 600 A MONTH AND TWO DAYS OFF EACH WEEK INSTEAD OF ONE BUT SHE WON'T DO IT THE GOVERNMENT GIVES HER A FREE HOUSE A BUS RIDE TO WORK AND LIFELONG JOB SECURITY A FEW CHINESE WORKERS WILL TAKE THE RISK ZHANG PINGYU THE CONDRELLS' ACCOUNTANT LEFT HER GOVERNMENT JOB FOR A QUINTUPLING OF HER SALARY BUT SHE'S NOT ALTOGETHER PLEASED I WAS OVERWHELMED WITH THE WORK AND RESPONSIBILITY HERE SHE SAYS I COULDN'T BELIEVE ONE PERSON HAD TO DO ALL THIS AT HER STATE JOB HER DEPARTMENT OF EIGHT WORKERS PUT IN FULL DAYS ONLY ONCE OR TWICE A MONTH THE GOVERNMENT IS FAR FROM HELPFUL TO PRIVATE EMPLOYERS UNLESS THEY OWN AND OPERATE THEIR OWN FACTORY OR ARE PART OF A JOINT VENTURE FOREIGNERS AREN'T PERMITTED TO HIRE DIRECTLY THE CONDRELLS RELY ON THEIR PARTNER WHO HOLDS A BUSINESS LICENSE MOREOVER GOVERNMENT WORKERS MUST APPLY TO LEAVE THEIR JOBS A PROCESS THE STATE CAN DELAY FOR THREE MONTHS THE GOVERNMENT CAN ALSO DEMAND TRAINING FEES FROM THE NEW EMPLOYER FOR THE SKILLS THE STATE COMPANY SUPPOSEDLY TAUGHT THE WORKERS IN GUANGZHOU THE LOCAL GOVERNMENT'S LABOR DEPARTMENT ALLOWS THE CONDRELLS TO POST A HELPWANTED NOTICE ON A BULLETIN BOARD OUTSIDE ITS OFFICE THAT HAS FOUND THEM TWO WORKERS THEY HAVE STRUGGLED TO RECRUIT THE REST THROUGH WORDOFMOUTH FIRING WORKERS HAS ITS OWN DIFFICULTIES WHEN THE CONDRELLS CLOSED MANY OF THEIR DRESSPATTERN COUNTERS IN STATE STORES TWO WORKERS MADE OFF WITH INVENTORY ANOTHER EMPLOYEE WHO HAD BEEN LURED AWAY FROM A GOVERNMENT POSITION HAD TO BUY HER WAY BACK INTO HER OLD JOB THE COUPLE ARE CAREFUL TO GIVE GENEROUS SEVERANCE PAYMENTS OF UP TO SIX MONTHS' SALARY LEST ANYONE GET TEMPTED TO GO TO THE LABORGRIEVANCE BOARD MR CONDRELL SAYS THE CONDRELLS HAVE GONE THROUGH SOME 150 WORKERS SINCE THEY CAME TO CHINA SEVEN YEARS AGO AND THE BEST WORKERS HAVE BEEN THE HARDEST TO KEEP ON ONE RECENT DAY THAT'S MADE CLEAR YET AGAIN THE COUPLE'S OFFICE MANAGER AND SOLE ENGLISH SPEAKER GAO MING QUITS ABRUPTLY AFTER ONLY ONE MONTH SHE INFORMS THE CONDRELLS BY LEAVING A NOTE SAYING THAT THE GOVERNMENT HAS GIVEN HER PERMISSION TO EMIGRATE TO HONG KONG TO BECOME A BANK TELLER SHE DIDN'T BOTHER TO TELL THE CONDRELLS WHEN THEY OFFERED HER A JOB THAT SHE WAS AWAITING PERMISSION TO MOVE REREADING MS GAO'S NOTE MR CONDRELL SULKS ABOUT THE OFFICE WHAT ARE YOU GOING TO DO HE LAMENTS 9312100113 931210 CAROLINA TOWN SEEKS A BRIGHTER SOME SAY WHITER FUTURE IT WANTS OUT OF A COUNTY THAT IS LARGELY BLACK BUT THE PLAN DRAWS FIRE BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL HEMINGWAY SC WHITE FLIGHT FROM CITIES TO SUBURBS IS ONE THING BUT WHAT HAPPENS WHEN A PREDOMINANTLY WHITE TOWN ATTEMPTS TO SECEDE FROM A PREDOMINANTLY BLACK COUNTY IT ISN'T QUITE CIVIL WAR THOUGH CIVIL LAWSUITS HAVE BEGUN TO FLY AS HAVE ACCUSATIONS OF UNCIVIL ATTITUDES THE AUDACITY OF THESE WHITE FOLKS TO ATTEMPT TO DO THIS FUMES STANLEY PASLEY WHO HEADS A COMMUNITY GROUP AT A WILLIAMSBURG COUNTY HOSPITAL THESE PEOPLE WANT TO BREAK THEIR ASSOCIATION WITH US WHAT'S WRONG WITH US WE'RE NOT DESIRABLE INDEED EMOTIONS HAVE RUN HIGH EVER SINCE THIS LOWCOUNTRY HAMLET BEGAN EARNESTLY TO PRESS FORWARD WITH A BOLD AND CRITICS SAY BRAZENLY RACIST ATTEMPT TO CUT ITS LEGAL TIES WITH WILLIAMSBURG COUNTY HEMINGWAY TOWNSHIP POPULATION 2500 IS 80 WHITE WILLIAMSBURG COUNTY POPULATION 38000 IS 65 BLACK HEMINGWAY ACCUSING WILLIAMSBURG'S GOVERNMENT OF POOR DELIVERY OF SERVICES HAS PETITIONED THE STATE TO JOIN PREDOMINANTLY WHITE FLORENCE COUNTY TO THE NORTH FUELING THE CONTROVERSY HEMINGWAY IN RECENT YEARS HAS BEEN RAPIDLY ANNEXING PREDOMINANTLY WHITE AREAS AROUND IT WHILE DECLINING TO CONSIDER BLACK ONES HEMINGWAY RESIDENTS NONCHALANTLY ADMIT THE MOVE IS AIMED AT SHORING UP HEMINGWAY'S CHANCES OF GETTING THE TWOTHIRDS MAJORITY IT NEEDS IN AN UPCOMING SECESSION VOTE A 1985 SECESSION ATTEMPT FAILED BY A MERE 112 VOTES WHEN HEMINGWAY'S BLACKS THEN ABOUT 35 OF THE POPULATION REJECTED IT THE NEW VOTE HAD BEEN SCHEDULED FOR JANUARY BUT HAS BEEN POSTPONED BY A BARRAGE OF LEGAL ACTIONS FOR ONE THE US JUSTICE DEPARTMENT IS INVESTIGATING WHETHER THE SECESSION GIVEN THE RACIAL OVERTONES OF HEMINGWAY'S ANNEXATION EFFORTS VIOLATES THE FEDERAL VOTINGRIGHTS ACT WILLIAMSBURG'S SCHOOL DISTRICT HAS SUED TO BLOCK THE MOVE AS A SEGREGATIONIST PLOY AS HAS THE NAACP NAACP PROTESTERS LED BY ITS PRESIDENT BENJAMIN CHAVIS RECENTLY MARCHED THROUGH HEMINGWAY THEIR CHANT HEMINGWAY HEMINGWAY HAVE YOU HEARD THIS IS NOT JOHANNESBURG THE STAKES ARE MORE THAN PSYCHOLOGICAL IF HEMINGWAY SECEDES IT WOULD TAKE 10 OF THE COUNTY'S TAX BASE 546 MANUFACTURING JOBS AND THREE OF THE COUNTY'S BEST SCHOOLS DISPLACING 1100 STUDENTS NOW BUSED IN FROM OTHER MOSTLY BLACK COUNTY AREAS FOR A COUNTY ALREADY THE SECOND POOREST IN SOUTH CAROLINA THE BLOW WOULD BE DEVASTATING EVEN SOME HEMINGWAY RESIDENTS WHO FAVOR SECESSION MUSTER SYMPATHY FOR THE DIRE ECONOMIC AND EDUCATIONAL IMPACT IT WOULD BRING I FEEL SORRY FOR THE PEOPLE THAT WOULD BE LEFT HERE IF WE MAKE IT THIS COUNTY'S GOING TO DIE IF WE LEAVE SAYS ELAINE HAYS A HEMINGWAY NURSE AND MOTHER BUT I DON'T FEEL LIKE ANYTHING'S EVER GOING TO CHANGE THE BLACKS AROUND HERE FEEL LIKE THEY CAN'T VOTE FOR A WHITE EVEN IF HE'S BEST BECAUSE THAT WOULD BE GOING AGAINST THEIR KIND BEFORE PASSAGE OF THE FEDERAL VOTINGRIGHTS ACT IN 1965 HEMINGWAY WHITES PLAYED AN INFLUENTIAL ROLE IN COUNTY GOVERNMENT BUT THESE DAYS BLACKS CONTROL THE COUNTY'S MAJOR ELECTED POSITIONS INCLUDING A STATE LEGISLATIVE SEAT AND THE COUNTY SCHOOL BOARD THE OFFICIAL LINE IN HEMINGWAY IS THAT THE SECESSION MOVEMENT IS MOTIVATED BY ECONOMICS NOT RACE WITH 38000 PEOPLE THE COUNTY IS A HODGEPODGE OF MOSTLY DOWNTRODDEN TOWNS TINROOFED SHACKS AND POTHOLED ROADS ACROSS A CHECKERBOARD OF SPRAWLING COTTON AND TOBACCO FIELDS NORTH OF CHARLESTON PER CAPITA INCOME IS 10255 5000 LESS THAN THE STATE AVERAGE FOR WORK RESIDENTS MAINLY CRAFT PLASTIC CONTAINERS AT A TUPPERWARE PLANT NEAR HEMINGWAY SCRUB FLOORS AND MAKE BEDS IN NEARBY COASTAL RESORTS LIKE MYRTLE BEACH OR GET SEASONAL WORK PICKING COTTON OR PROCESSING TOBACCO LEAVES TWENTYFOUR PERCENT OF COUNTY FAMILIES LIVE BELOW THE POVERTY LINE THE STATE AVERAGE IS 11 HEMINGWAY IS EVERYTHING WILLIAMSBURG COUNTY IS NOT ITS ROADS ARE SMOOTH AND MANY OF THEM FOURLANE ITS TIDY BRICK HOUSES SPORT MANICURED LAWNS WITH ITS COMPACT BUT ACTIVE BUSINESS DISTRICT ITS TWO SUPERMARKETS AND A COACHMAN INN THE TOWN HAS AN AIR OF PROSPERITY HEMINGWAY RESIDENTS CHRONICALLY COMPLAIN THAT THE TOWNSHIP GETS SHORTCHANGED ON COUNTY SERVICES WHILE PAYING A DISPROPORTIONATE AMOUNT OF COUNTY TAXES ONE EXAMPLE THEY SAY HEMINGWAY'S ONLY AMBULANCE IS OFTEN SENT TO COVER KINGSTREE THE COUNTY SEAT 29 MILES AWAY LEAVING HEMINGWAY WITHOUT PROTECTION SOME RESIDENTS ALSO THINK PROPERTY VALUES SUFFER HERE BECAUSE THE COUNTY HAS A REPUTATION NOT ONLY OF BEING POOR BUT ALSO OF BEING INEPTLY GOVERNED THE EXECUTIVES WHO WORK FOR TUPPERWARE WILL NOT LIVE IN HEMINGWAY BECAUSE WE'RE ASSOCIATED WITH WILLIAMSBURG COUNTY SAYS TIM HARRELSON A LOCAL BUSINESSMAN THE SOLUTION AN ALLIANCE WITH MORE PROSPEROUS FLORENCE COUNTY BETTER TO BE ON THE TAIL END OF A RICH COUNTY THAN ON THE TAIL END OF A POOR COUNTY SAYS JEFFREY LAWRIMORE HEMINGWAY'S MAYOR BUT IT IS HEMINGWAY'S THREE SCHOOLS NOW 88 BLACK THAT SEEM TO BE THE REAL SORE SPOT FOR WHITES HERE EVERY WEEKDAY MORNING A LINE OF YELLOW SCHOOL BUSES RUMBLES THROUGH TOWN STREETS BRINGING WITH THEM 1067 BLACK STUDENTS UNTIL 1985 HEMINGWAY'S SCHOOLS WERE PREDOMINANTLY WHITE IN FACT THE PROPOSED BUSING OF HUNDREDS OF NEW BLACK STUDENTS TO TOWN SCHOOLS THAT YEAR PRECIPITATED HEMINGWAY'S FIRST SECESSION EFFORT STATISTICALLY AT LEAST THE COUNTYRUN SYSTEM SEEMS TO BE DOING A CREDIBLE JOB GIVEN MODEST RESOURCES PERPUPIL SPENDING AT 4235 IS NEAR THE MEDIAN FOR DISTRICTS STATEWIDE AND IS 200 MORE PER STUDENT THAN PER CAPITA SPENDING IN FLORENCE COUNTY WHILE THE FLORENCE DROPOUT RATE FOR 1992 WAS 52 WILLIAMSBURG COUNTY'S DROPOUT RATE WAS 25 YET WHITE HEMINGWAY RESIDENTS PAINT A DIRE PICTURE OF HEMINGWAY SCHOOLS THE SCHOOLS HERE ARE REALLY DISAPPOINTING SAYS MR HARRELSON WHO SENDS HIS SON TO A NEARBY PRIVATE SCHOOL THE FLORENCE COUNTY SCHOOLS AT LEAST APPEARANCEWISE REALLY SEEM TO HAVE A GOOD WHOLESOME ATMOSPHERE HE ADDS MRS HAYS THE NURSE AND LIFELONG HEMINGWAY RESIDENT CONCURS SHE SAYS BUILDINGS HAVE FALLEN INTO DISREPAIR AND SHE FRETS ABOUT DRUG ABUSE AT THE HIGH SCHOOL AND ABOUT A MAJORITY BLACK SCHOOL BOARD SHE IS ALSO CRITICAL OF A BLACK SCHOOL SUPERINTENDENT WHO SHE SAYS THINKS HE'S GOD AMONG OTHER THINGS THE SUPERINTENDENT JAMES FRANKLIN OBJECTED TO A RECENT OLD FASHIONED DAYS FESTIVAL BECAUSE A PREVIOUS PARADE FEATURED BLACKS PICKING UP MULE DROPPINGS SHE SAYS MR FRANKLIN INDEED SAYS HE CRITICIZED THE PARADE AS INSENSITIVE TO BLACKS AND PROHIBITED SCHOOL BANDS FROM PARTICIPATING THE PARADE WENT ON AS SCHEDULED IN OCTOBER HOWEVER AND WHILE BLACKS DIDN'T PICK UP MULE DROPPINGS THE EVENT FEATURED NUMEROUS CARS DECORATED WITH CONFEDERATE FLAGS MRS HAYS ALSO IS UPSET BECAUSE A BLACK TEACHER REBUKED A FESTIVAL DRAWING MADE BY HER SON MY SON DREW A PICTURE OF A BLACK PERSON HANGING WITH A COWBOY WITH A GUN POINTED AT HIM SHE SAYS WELL THE TEACHER TOLD HIM THAT WOULDN'T DO AND HE'D HAVE TO DO ANOTHER ONE EVEN THE BLACK TEACHERS ARE GETTING INTO THIS THERE'S A DIFFERENCE IN THE WAY THE WHITE STUDENTS ARE TREATED NOW MR FRANKLIN REJECTS SUCH CRITICISM AND SAYS TEACHERS BLACK OR WHITE HAVE AN OBLIGATION TO POINT OUT RACIALLY OFFENSIVE MATERIAL AND ATTITUDES ASIDE HE SAYS HIS SCHOOL SYSTEM WILL BE IN DEEP TROUBLE IF HEMINGWAY IS ALLOWED OUT WHERE WOULD WE PUT ALL THOSE STUDENTS HE SAYS THEY'LL BE TAKING OUR BEST FACILITIES SCHOOL OFFICIALS ESTIMATE THE COST TO BUILD REPLACEMENT SCHOOLS WOULD BE MORE THAN 10 MILLION MONEY THE COUNTY DOESN'T HAVE OVER AT HEMINGWAY HIGH BLACK STUDENTS FIND THE WHOLE MATTER DISCONCERTING SINCE THIS ANNEXATION STUFF STARTED IT'S LIKE I DON'T TRUST THE WHITE KIDS NOW SAYS BARVETTA SINGLETARY A 10THGRADER SOME IN FACT HAVE ALREADY FELT THE STING OF WHITE FLIGHT LETIA COOPER A SENIOR SAYS TWO OF HER BEST FRIENDS IN ELEMENTARY SCHOOL WERE WHITE BUT IN SIXTH GRADE THEIR PARENTS USING A LOOPHOLE IN LOCAL LAW SENT THEM TO A PREDOMINANTLY WHITE PUBLIC SCHOOL IN FLORENCE COUNTY THE GIRLS STILL LIVE IN HEMINGWAY AND MISS COOPER NOW 17 STILL SEES THEM OCCASIONALLY BUT THE RELATIONSHIP ISN'T THE SAME WE SPEAK TO EACH OTHER SHE SAYS BUT WE'RE NOT FRIENDS ANYMORE 9312100112 931210 PARAMOUNTTAKEOVER HEARING GLUES TRADERS TO TV SCREENS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT WAS WALL STREET'S ANSWER TO THE PEOPLE'S COURT A KEY HEARING IN THE PARAMOUNT COMMUNICATIONS INC TAKEOVER BATTLE WAS PUT ON NATIONAL CABLE TELEVISION YESTERDAY MORNING AND INSTANTLY BECAME THE HOTTEST SHOW ON WALL STREET THE TWO HOURS OF LIVE COVERAGE FROM DELAWARE SUPREME COURT WAS STUDIED BLOWBYBLOW BY TRADERS AND BROKERS WITH ACCESS TO COURTROOM TELEVISION NETWORK COURT TV AND OTHER CHANNELS THAT CARRIED THE NETWORK'S FEED REMARKABLY PARAMOUNT'S STOCK PRICE APPEARED TO REACT INSTANTANEOUSLY WITH DEVELOPMENTS FROM THE COURTROOM EVENTUALLY CLOSING 275 HIGHER AT 82 A SHARE IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING JUDGING BY ALL THE TRADERS AND SECURITIES LAWYERS WHO WATCHED IT YESTERDAY MORNING AND BY THE RAPID PRICE REACTION OF PARAMOUNT SHARES TO COURTROOM DEVELOPMENTS THE BUSINESS OF TAKEOVERSTOCK SPECULATION MAY NEVER BE THE SAME PARAMOUNT STOCK STARTED STIRRING JUST AFTER 10 AM EASTERN TIME WHEN PARAMOUNT LAWYER BARRY OSTRAGER BEGAN HIS PRESENTATION THE DELAWARE JUSTICES PUT MR OSTRAGER ON THE DEFENSIVE WITH TOUGH QUESTIONS THE REDHAIRED MR OSTRAGER LOOKED SCARED MANY TRADERS CONCLUDED THEY BEGAN BIDDING UP PARAMOUNT'S STOCK CONVINCED THAT THE COURT WAS LEANING TOWARD KILLING VIACOM INC'S TAKEOVER AGREEMENT WITH PARAMOUNT AND ALLOWING A MORELUCRATIVE ONE FROM QVC NETWORK INC TO GO FORWARD AND AFTER THE MARKET CLOSED THAT'S EXACTLY WHAT HAPPENED WE AND ALL OF OUR ARBITRAGE CLIENTS WERE RIVETED TO IT SAID FRANK BAXTER CHAIRMAN OF JEFFERIES GROUP INC WHICH PULLED IN THE FEED ON ITS FOUR TELEVISIONS IN ITS LOS ANGELES TRADING ROOM THE SHOW WAS WATCHED EVERYWHERE FROM THE TRADING DESK OF GIANT MERRILL LYNCH & CO IN NEW YORK TO THE SMALLEST INDEPENDENT TAKEOVER TRADER OR RISK ARBITRAGER IT WAS SENSATIONAL IT WAS HIGH DRAMA SAID ONE OF THESE ARBITRAGERS IT SPEEDED UP TRADING IN PARAMOUNT TO REAL TIME IN THE PAST MOST TAKEOVERRELATED HEARINGS HAVE BEEN KEPT BEHIND CLOSED DOORS LEAVING TRADERS TO BITE THEIR FINGERNAILS AWAITING NEWS IN 1989 CABLE NEWS NETWORK PROVIDED LIVE COVERAGE OF PART OF THE TIME INC TAKEOVER BATTLE ALSO FROM DELAWARE SUPREME COURT BUT NO HEARING HAS GOTTEN THE ATTENTION THAT YESTERDAY'S PARAMOUNT SHOW DID IT WAS THE FIRST TIME THAT A MAJOR TAKEOVER BATTLE GOT SUCH A SPOT ON COURT TV THE NETWORK HAS SHOWN OTHER BUSINESSRELATED CASES INCLUDING ART BUCHWALD'S LAWSUIT AGAINST PARAMOUNT BUT IT IS MORE KNOWN FOR THE SEX AND VIOLENCE OF SUCH HIGHPROFILE CASES AS THE WILLIAM KENNEDY SMITH TRIAL AND THE RODNEY KING TRIAL YESTERDAY'S HEARING WAS SHOWN BECAUSE IT WAS MORE OR LESS INTERPRETABLE COMPARED WITH MOST WALL STREET LITIGATION SAID A NETWORK SPOKESMAN HE ADDED IT WAS COMPACT TOO DURING MANY MID1980S TAKEOVER FIGHTS TRADERS RELIED ON RUMORS OR FRANTIC PHONE CALLS FROM COLLEAGUES OUTSIDE COURTROOMS BUT YESTERDAY'S TELECAST COULD BE A PREVIEW OF THE 21STCENTURY STOCK MARKET WHEN MOST TRADERS WILL PROBABLY HAVE TVS BUILT RIGHT INTO THEIR TRADING SCREENS AND MARKETMOVING COURT HEARINGS WILL BE TELECAST ROUTINELY IF SO NOT ALL TRIALS WILL BE AS INTERESTING AS THE PARAMOUNT HEARING IN WILMINGTON MANY WALL STREET CASES ARE AS BORING AS THEY COME FILLED WITH LAWYERS POSTURING ABOUT OBSCURE RULES OF LAW AND PROCEDURE THE PARAMOUNT HEARING IN CONTRAST HAD BIG STAKES AND TOPNOTCH LAWYERS INCLUDING TO BE FAIR MR OSTRAGER TVWATCHING TRADERS THOUGHT THAT QVC'S LAWYER WHO APPEARED AFTER MR OSTRAGER HERBERT WACHTELL WAS MORE IMPRESSIVE THOUGH HE ALSO FACED TOUGH QUESTIONS AFTER ALL TWO OF THE JUSTICES SEEMED TO NOD THEIR HEADS IN AGREEMENT WITH ONE OF MR WACHTELL'S POINTS PARAMOUNT'S STOCK HELD ITS GROUND DURING MR WACHTELL'S TESTIMONY AND AGAIN JUMPED UPWARD WHEN MR OSTRAGER MADE A SECOND APPEARANCE AROUND NOON DURING THAT APPEARANCE JUSTICE ANDREW MOORE WAS PARTICULARLY AGGRESSIVE ABOUT WHY PARAMOUNT TURNED DOWN A GOOD OFFER FROM QVC IT DOESN'T SOUND LIKE YOU'RE DEALING OPENLY WITH BOTH SIDES HE SAID THE STOCK CONTINUED TO RISE AT 1215 PM AS VIACOM'S ATTORNEY STUART BASKIN ALSO GOT A TOUGH RECEPTION FROM THE JUSTICES THE STOCK EASED IN THE AFTERNOON ONCE THE COURT ADJOURNED AND THE TELEVISION SETS WERE SHUT OFF MEANWHILE COURT TV SWITCHED BACK TO THE LONGRUNNING MENENDEZ TRIAL INVOLVING TWO BROTHERS ACCUSED OF KILLING THEIR PARENTS PARAMOUNT STOCK RALLIED AGAIN IN THE LAST HOUR OF TRADING BEFORE THE POSTTRADING COURT DECISION WAS ANNOUNCED THE TV COVERAGE MEANT THAT RISK ARBITRAGERS INTERESTED IN THE PARAMOUNT DRAMA COULD SCALE BACK ON THE PERSONNEL THAT THEY SENT TO THE HEARING AFTER ALL THEY COULD JUST AS EASILY WATCH TELEVISION ONE TRADER SAID HE STILL SENT A SKELETON STAFF TO DELAWARE JUST IN CASE THE TV FEED WAS INTERRUPTED YESTERDAY'S HEARING WAS ALSO CARRIED ON SUCH NETWORKS AS THE CNBC CABLE CHANNEL AND DOW JONES INVESTOR NETWORK A VIDEONEWS SERVICE OPERATED BY DOW JONES & CO WHICH OWNS THIS NEWSPAPER BEFORE TV GOT IN THE ACT TRADERS HAD TO BE MORE ENTERPRISING TRADERS LAWYERS AND AIDES REPRESENTING OUTSIDE INVESTORS SWARMED OVER COURT HEARINGS JAMMING INTO THE BEST SEATS NEAR EXIT ROUTES TO NEARBY TELEPHONES A FEW YEARS AGO THE DELAWARE SUPREME COURT CITED ONE NEW YORK LAWYER FOR CONTEMPT AFTER HE LIED ABOUT SMUGGLING A CELLULAR TELEPHONE INTO THE COURTROOM DURING A HEARING ON THE POLAROIDSHAMROCK TAKEOVER BATTLE AT THAT TIME THE COURT ALSO SCOLDED MR WACHTELL THE LAWYER WHO DID SO WELL IN YESTERDAY'S TELEVISION TESTIMONY AFTER ONE OF HIS PARTNERS WAS ACCUSED OF IMPROPERLY LEAKING A DOCUMENT DURING THE TIME INC TAKEOVER BATTLE TRADERS INSIST THAT THE POPULARITY OF YESTERDAY'S TELEVISED HEARING DOESN'T MEAN THAT TAKEOVERSTOCK INVESTORS CAN GET ALL THEY NEED TO KNOW FROM TV WITHOUT USING THEIR HIGHLY PAID BROKERS THERE'S STILL A TREMENDOUS AMOUNT OF SUBJECTIVITY TO TRADING SAYS MR BAXTER THERE ARE MANY WAYS OF LOOKING AT THE SAME PIECE OF INFORMATION 9312100111 931210 IT'S A MUNIFICENT BIT OF NEPOTISM BUT THAT'S WHAT BROTHERS ARE FOR BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL IT'S THE KIND OF BIGTIME HOLLYWOOD PLUG THAT COULD MAKE RIVAL MARKETING MANAGERS SICK IN WAYNE'S WORLD II PARAMOUNT'S SEQUEL TO LAST YEAR'S GOOFY SURPRISE HIT THE FILM'S PROTAGONISTS WAYNE CAMPBELL AND GARTH ALGAR MOVE INTO AN ABANDONED DOLL FACTORY AND PRODUCE THEIR OWN CABLEACCESS TV SHOW FEATURED PROMINENTLY ON THE SET IS A REALLIFE VIDEOEDITING COMPUTER CALLED THE VIDEO TOASTER MADE BY LITTLEKNOWN NEWTEK INC TOPEKA KAN IN CASE THAT REFERENCE TO THE COMPANY IS MISSED GARTH PLAYED BY DANA CARVEY SPENDS ABOUT 20 OF THE FILM IN A VIDEO TOASTER TSHIRT MAKING NEWTEK THE ONLY COMPANY TO BE SPOTLIGHTED IN THE MOVIE WHICH OPENS TODAY ACROSS THE COUNTRY AND NONE OF THIS IS COSTING NEWTEK A DIME IT TURNS OUT THAT THE VIDEO TOASTER WAS DESIGNED IN PART BY BRAD CARVEY THE COSTAR'S BROTHER AND THE REALLIFE ALTEREGO OF GARTH THE PLUGS FOR NEWTEK COME COURTESY OF DANA CARVEY AS A FAVOR TO HIS BROTHER IF GARTH EXISTED IN REAL LIFE I GUESS HE WOULD BE ME SAYS BRAD WHO HAS GARTH'S FLOPPY HAIR BUT IS HUSKIER AND SPORTS A BEARD THE 42YEAROLD BRAD HAS BEEN A TINKERER SINCE CHILDHOOD DANA NOTES IN STANDUP ROUTINES THAT BRAD AT AGE SEVEN TACKLED A BROKEN CLOTHES DRYER WITH A BUTTER KNIFE AND FIXED IT FOREVER IN HIS SECOND JOB OUT OF COLLEGE BRAD HELPED DEVELOP AN ULTRASOUND MACHINE THAT DETECTED CANCER IN LIVERS THEN AGAIN LEST THINGS GET TOO SERIOUS BRAD ALSO INVENTED SOMETHING CALLED THE BUTT MUFFLER A STRAPON DEVICE HE SAYS USES CHARCOAL FILTERS TO HELP CONTROL THE EFFECTS OF FLATULENCE TO HELP ENSURE THAT GARTH'S BEDROOM IN THE MOVIE LOOKS LIKE THE HANGOUT OF A TECHNONERD DANA CALLED IN HIS BROTHER TO ASSIST THE MOVIE'S DIRECTOR IN DESIGNING THE SET BRAD WHO NOW LIVES ON VIDEO TOASTER ROYALTIES IN THE SANDIA MOUNTAINS OUTSIDE ALBUQUERQUE NM SAYS HIS BROTHER HAS WARNED HIM THAT THE WAYNE'S WORLD ATTENTION COULD PUSH HIM INTO THE LIMELIGHT BUT HE INSISTS THAT HE HAS BECOME A BIT MORE POLISHED IN RECENT YEARS MAKING THE SHY AWKWARD CHARACTERIZATION OF HIM AS DEPICTED BY GARTH A BIT DATED BUT PAUL MONTGOMERY NEWTEK'S COFOUNDER THINKS NOT HE SAYS NO NERD THINKS HE'S A NERD 9312100110 931210 BUSINESS BRIEF BLACKSTONE GROUP LP NEW BUYOUT FUND IS CLOSED CAPPING A SUCCESSFUL YEAR BLACKSTONE GROUP LP CLOSED ITS NEW 11 BILLION LEVERAGED BUYOUT FUND BLACKSTONE CAPITAL PARTNERS II LP MAKING THE NEW YORK MERCHANT BANK THIS YEAR'S TOP MONEYRAISER AMONG BUYOUT FUNDS IT'S BEEN A GOOD YEAR FOR THE FUNDS BY YEAR END THEY WILL HAVE RAISED 11 BILLION THE BIGGEST YEAR SINCE 1989 ACCORDING TO THE PRIVATE EQUITY ANALYST NEWSLETTER EVEN SO BLACKSTONE IS A STANDOUT THE FACT THAT THEY CAN RAISE MONEY WHEN INVESTORS ARE SHYING AWAY FROM PRIVATE EQUITY PARTNERSHIPS IS A SIGN OF THEIR ABILITY TO DELIVER A GOOD RATE OF RETURN SAYS NEWSLETTER EDITOR STEVEN GALANTE BLACKSTONE'S ANNUAL RETURNS TO INVESTORS IN THE 810 MILLION FUND IT CLOSED IN 1987 AVERAGED 25 NET OF MANAGEMENT FEES AND THE FIRM'S 20 CUT OF PROFITS THREEQUARTERS OF THE MONEY FOR BLACKSTONE'S NEW FUND CAME FROM NEW INVESTORS MANY NEWCOMERS ARE PUBLIC PENSION FUNDS FORCED BY LOW INTEREST RATES AND AGGRESSIVE INVESTMENTRETURN ASSUMPTIONS TO LOOK FOR RISKIER HIGHERYIELDING ALTERNATIVES 9312100109 931210 NEW YORK WEIGHS CHANGES FOR PUBLIC AUTHORITIES NEW YORK THE STATE'S BUDGET DIVISION MADE A SERIES OF RECOMMENDATIONS AIMED AT IMPROVING ACCOUNTABILITY AT THE STATE'S MANY PUBLIC AUTHORITIES IN NEW YORK PUBLIC AUTHORITIES MANAGE SEVERAL TASKS INCLUDING NEW YORK CITY'S FARFLUNG PUBLIC TRANSIT SYSTEM DORMITORY BUILDINGS FOR THE STATE UNIVERSITY SYSTEM AND TOLL ROADS AND BRIDGES EARLIER THIS YEAR HOWEVER COMPLAINTS ABOUT OPERATIONS AND BUSINESS PRACTICES AT THE NEW YORK POWER AUTHORITY IN PART PROMPTED GOV MARIO CUOMO TO CALL FOR THE REVIEW THE REPORT ISSUED THIS WEEK FOUND WIDE DIFFERENCES IN HOW STATE AUTHORITIES OPERATE THEIR BUSINESSES INCLUDING A LACK OF SOPHISTICATION CONCERNING DEBTISSUANCE POLICIES AT SOME AUTHORITIES THE BUDGET OFFICE RECOMMENDED THAT AUTHORITIES ESTABLISH CLEAR POLICIES CONCERNING DEBT ISSUANCE IMPLEMENTING STATEWIDE GOALS TO ENCOURAGE COMPETITION AND FAIRNESS IN SELECTING FINANCIAL SERVICE FIRMS IN ADDITION THE REPORT RECOMMENDS LEGISLATION TO REQUIRE AUTHORITIES TO CONSULT THE BUDGET DIVISION AND THE STATE OFFICE OF EMPLOYEE RELATIONS WHEN ESTABLISHING SALARIES 9312100108 931210 BIG THREE AUTO FIRMS SCHEDULE OVERTIME DETROIT GENERAL MOTORS CORP SAID IT PLANS OVERTIME NEXT WEEK AT 10 CAR AND NINE TRUCK ASSEMBLY PLANTS IN THE US AND CANADA FORD MOTOR CO SAID THIS WEEK THAT IT IS OPERATING DAILY OVERTIME AT ALL OF ITS CAR ASSEMBLY PLANTS EXCEPT WIXOM MICH AND WAYNE MICH AND AT ALL ITS TRUCK PLANTS EXCEPT LORAIN OHIO AND ST LOUIS CHRYSLER CORP SAID IT PLANS OVERTIME TOMORROW AND NEXT WEEK AT THREE CAR AND FIVE TRUCK ASSEMBLY PLANTS ALTOGETHER DOMESTIC AUTO MAKERS PLAN TO BUILD 258774 CARS AND TRUCKS THIS WEEK UP 79 FROM THE 239791 VEHICLES BUILT A YEAR AGO FOR NOVEMBER DOMESTIC AUTO MAKERS PRODUCED A TOTAL OF 982895 CARS AND TRUCKS AN INCREASE OF 229 FROM THE 799463 VEHICLES BUILT IN THE YEAREARLIER PERIOD 9312100107 931210 TECHNOLOGY ENROLLMENT IN HMOS SPURTED ALMOST 10 IN 1993 REPORT SAYS WASHINGTON THE NUMBER OF AMERICANS ENROLLED IN HEALTH MAINTENANCE ORGANIZATIONS SWELLED ALMOST 10 THIS YEAR TO A HIGH OF 453 MILLION PEOPLE ACCORDING TO A TRADE ASSOCIATION REPRESENTING HMOS HMOS ARE NETWORKS OF DOCTORS AND HOSPITALS THAT PROVIDE ENROLLEES WITH ALL NECESSARY CARE FOR A SET ANNUAL FEE INSTEAD OF CHARGING PATIENTS FOR EACH SERVICE OR PROCEDURE NUMEROUS HEALTHCARE REFORM PROPOSALS INCLUDING THE 1342PAGE BILL SUBMITTED BY PRESIDENT CLINTON AIM TO ENCOURAGE ENROLLMENT IN HMOS BECAUSE THEY ARE CONSIDERED MORE COST EFFICIENT CRITICS HOWEVER SAY THEY LIMIT PATIENT CHOICE THE REPORT RELEASED YESTERDAY BY THE GROUP HEALTH ASSOCIATION OF AMERICA SHOWS THE HEALTHCARE MARKET IS MOVING TOWARD HMOS ON ITS OWN DURING 1993 THE 35 MILLION NEW ENROLLEES AMOUNTED TO THE LARGEST INFLUX OF PEOPLE INTO HMOS SINCE 1987 THE REPORT SAID SINCE 1984 THE NUMBER OF PEOPLE IN HMOS HAS GROWN MORE THAN FOURFOLD FROM 102 MILLION IN 1982 THE ASSOCIATION'S REPORT ALSO SHOWED THE INCREASE IN HMO PREMIUMS MODERATING FOR THE FIFTH YEAR IN A ROW PREMIUMS ROSE 81 IN 1993 COMPARED WITH A 106 INCREASE IN 1992 THEY WILL RISE AN ESTIMATED 56 IN 1994 THE REPORT SAID THAT IS EXPECTED TO EXCEED THE GENERAL INFLATION RATE HOWEVER THE DATA RELEASED AT A NEWS CONFERENCE YESTERDAY WERE DRAWN FROM A RANDOM SAMPLING OF 50 HMOS WITH 58 MILLION MEMBERS NATIONWIDE 9312100106 931210 OIL FIRMS REEXAMINE SPENDING PLANS FOR '94 IN WAKE OF RECENT PRICE PLUNGE BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL WITH OIL PRICES PLUNGING SOME OIL COMPANIES FEAR A LONG SLUMP AND ARE STARTING TO REEXAMINE THEIR SPENDING PLANS THE COMPANIES MANY OF WHICH DISCLOSED 1994 CAPITAL SPENDING PLANS LAST MONTH AT THE AMERICAN PETROLEUM INSTITUTE MEETING IN CHICAGO HAD BASED THEIR BUDGETS ON PROJECTIONS THAT OIL PRICES WOULD RANGE BETWEEN 18 AND 20 A BARREL NEXT YEAR NOW SOME OF THEM SAY PRICES COULD MOVE AS LOW AS 13 A BARREL AND SOME ADD THAT EVEN IF THEY DON'T CHANGE THEIR 1994 BUDGETS NOW THEY WON'T NECESSARILY SPEND THE BUDGETED AMOUNT AT PHILLIPS PETROLEUM CO FOR INSTANCE ECONOMIST ALAN STRUTH DOUBTS WHETHER THE COMPANY'S BOARD WHICH PLANS TO MEET MONDAY WILL BE ABLE TO APPROVE A BUDGET MR STRUTH HAS REVISED HIS PROJECTIONS WHICH HAD PUT PRICES AT NO LOWER THAN 16 A BARREL FOR 1994 TO ENCOMPASS PRICES AS LOW AS 13 THE BOARD IS EXPECTED TO TAKE THOSE ADJUSTMENTS INTO CONSIDERATION BEFORE DECIDING ON 1994 SPENDING LEVELS FOR THE BARTLESVILLE OKLA COMPANY YESTERDAY THE FUTURES PRICE OF CRUDE OIL FOR JANUARY DELIVERY SETTLED AT 1463 UP FOUR CENTS AN OIL COMPANY'S INTERNAL PROJECTION A BEST GUESS REALLY OF WHERE OIL PRICES ARE HEADED IS THE FIRST STEP IN THE BUDGET PROCESS BASED ON THAT PROJECTION THE COMPANIES DECIDE WHICH EXPLORATION PROJECTS ARE ECONOMICALLY FEASIBLE AND SHOULD GET A GREEN LIGHT ON FUNDING THE DECISION HAS FARREACHING CONSEQUENCES WITH SUPPLIERS SERVICE COMPANIES AND THE ENERGY CONCERNS THEMSELVES ADJUSTING HIRING OR LAYOFFS TO MATCH THE PROJECTIONS INDEED SINCE DWINDLING DOMESTIC OIL RESERVES ARE AMONG THE MOST EXPENSIVE IN THE WORLD TO PRODUCE THE SLIDE IN CRUDE PRICES WILL ACCELERATE THE INDUSTRY'S MOVE OVERSEAS FOR INVESTORS LOWER OIL PRICES AND THE SUBSEQUENT REDUCTION IN SPENDING CAN SLOW THE GROWTH POTENTIAL OF A COMPANY MAKING IT LESS ATTRACTIVE AS AN INVESTMENT AND AS OIL COMPANIES SLOW THEIR GROWTH OIL PRODUCTION GLOBALLY BEGINS TO SLOW AS WELL ROBERT HAMMOND AN EXECUTIVE WITH ORYX ENERGY CORP IN DALLAS SAID LOWER OIL PRICES WILL MAKE IT MORE DIFFICULT TO FIND PARTNERS TO DEVELOP OIL PROSPECTS PAUL TAYLOR A VICE PRESIDENT FOR HOUSTONBASED ANADARKO PETROLEUM CORP SAID PLANS TO KICK UP ANADARKO'S SPENDING NEXT YEAR WILL BE REVAMPED SPENDING IS STILL EXPECTED TO EXCEED THIS YEAR'S LEVEL OF 290 MILLION BUT NOT BY AS MUCH AS WE THOUGHT JUST A MONTH AGO HE SAID AT MAXUS ENERGY CORP IN DALLAS CASH FLOW FOR THE FIRST NINE MONTHS OF 1993 WAS 1311 MILLION BUT EVERY 1 DECLINE IN THE PRICE OF A BARREL OF CRUDE REDUCES THE COMPANY'S CASH FLOW BY 4 OR 8 MILLION A YEAR MOST OIL COMPANIES RELY HEAVILY ON CASH FLOW RATHER THAN DEBT FOR SPENDING NEEDS AS COMPANY EXECUTIVES WRESTLE WITH NEXT YEAR'S BUDGETING PLANS THEY SAY THE PROCESS IS MUCH TOUGHER THAN USUAL BECAUSE OF THE RECENT PRICE VOLATILITY ANY TIME THERE IS PRESSURE ON CASH FLOW DELAYS OR CUTBACKS IN SPENDING COME UNDER CONSIDERATION SAID CYRUS TAHMASSEBI CHIEF ECONOMIST FOR ASHLAND OIL INC ASHLAND KY CONCERN OVER OIL PRICES HAS ALREADY TRIGGERED CONCERN ON THE PART OF MOODY'S INVESTORS SERVICE INC WHICH SAID LAST WEEK THAT IT STOOD READY TO CUT OIL COMPANY BOND RATINGS IF THE LOWER PRICES PERSIST AS MOODY'S BELIEVES THEY WILL MOODY'S REDUCED ITS PRICING FORECAST TO BETWEEN 15 AND 20 A BARREL FOR WEST TEXAS INTERMEDIATE CRUDE FROM ABOUT 19 TO 24 MOODY'S IS ESPECIALLY CONCERNED ABOUT OIL COMPANIES CARRYING EXCESSIVE DEBT BECAUSE THEY DON'T HAVE MUCH FINANCIAL FLEXIBILITY TED IZATT SENIOR ANALYST AT MOODY'S SAID DOWNGRADES COULD COME AS EARLY AS THE FIRST QUARTER OF 1994 A MOVE THAT WOULD MAKE IT DIFFICULT FOR THOSE OIL COMPANIES TO BORROW SOME COMPANIES ESPECIALLY LARGER ONES WITH HUGE INTERNATIONAL PROJECTS ARE HOLDING TO THEIR PLANS EVEN AS PRICES SLIDE CHEVRON CORP SAN FRANCISCO IS STILL COMMITTED TO SPENDING 5 BILLION NEXT YEAR UP FROM 47 BILLION THIS YEAR BUT THAT'S JUST ON PAPER TOM BURNS CHEVRON'S MANAGER OF INTERNATIONAL ECONOMICS SAID THE COMPANY DOESN'T MAKE ALL OF ITS 1994 SPENDING COMMITMENTS IN JANUARY BUT ADJUSTS THEM THROUGHOUT THE YEAR AS THE PRICE OUTLOOK CHANGES MR BURNS SAID CHEVRON EXECUTIVES HAVE BEEN TRYING TO DETERMINE WHETHER OIL PRICES MAY BE AT A TEMPORARY BOTTOM OR WHETHER SOMETHING MORE PERMANENT IS IN THE WORKS AND THEY STAND READY TO ALTER SPENDING AS ECONOMIC CONDITIONS CHANGE IN WHITE PLAINS NY TEXACO INC CHAIRMAN ALFRED DECRANE SAID HIS COMPANY CAN ADJUST ITS BUDGET BY CURBING OR DELAYING SPENDING IN SOME AREAS IF PRICES REMAIN LOW FOR AN EXTENDED PERIOD OF TIME 9312100105 931210 ECONOMY INFLATION SEEMS UNDER CONTROL AMID REBOUND PRODUCER PRICES REPORTED STEADY FOR NOVEMBER ENERGY SECTOR DECLINED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODUCER PRICES WERE UNCHANGED IN NOVEMBER THE LABOR DEPARTMENT SAID A SIGN THAT INFLATION STILL ISN'T A PROBLEM DESPITE INCREASED ECONOMIC ACTIVITY PRICES WERE HELD IN CHECK LAST MONTH BY A 27 DROP IN ENERGY PRICES OUTSIDE OF THE VOLATILE FOOD AND ENERGY SECTORS PRICES ROSE A MORE ROBUST 04 THE FASTEST CLIP SINCE APRIL PRODUCER PRICES FELL 02 IN OCTOBER AND ROSE A TINY 02 IN SEPTEMBER THE REPORT FOLLOWS OTHER EVIDENCE THAT PRICES ARE WELLBEHAVED THE LATEST SURVEY OF THE 12 FEDERAL RESERVE DISTRICTS ALSO SUGGESTS THAT INFLATION ISN'T A PROBLEM ACROSS THE COUNTRY THE CONSUMER PRICE INDEX FOR NOVEMBER WHICH MEASURES THE CHANGE IN WHAT AMERICANS PAID FOR GOODS AND SERVICES IS SCHEDULED TO BE RELEASED TODAY ANALYSTS SAID THE RISE IN THE SOCALLED CORE RATE OF INFLATION DOESN'T MEAN THAT PRICES ARE HEATING UP THAT'S BECAUSE MOST OF THE INCREASE WAS A RESULT OF A BIG 21 RISE IN NEW AUTO PRICES THAT FOLLOWS A 39 DROP IN OCTOBER ANALYSTS SAID SEASONAL QUIRKS ACCOUNTED FOR THE GYRATIONS FOR NOW WE MUST CONSIDER THIS A ONEMONTH BLIP IN THE CORE RATE OF WHOLESALE INFLATION SAID SAMUEL KAHAN CHIEF ECONOMIST OF FUJI SECURITIES INC IN CHICAGO THERE ARE OTHER OFFSETTING FACTORS DOWN THE ROAD THAT WILL LEAD TO LOWER INFLATION MR KAHAN POINTED TO THE RECENT DECLINE IN OIL PRICES WHICH IS EXPECTED TO KEEP INFLATION LOW FOR THE NEXT SEVERAL MONTHS AND HE SAID THE ECONOMY STILL ISN'T STRONG ENOUGH TO SUPPORT BIG PRICE INCREASES LAST MONTH PRICES AT THE INTERMEDIATE AND CRUDE LEVELS WERE ALSO WELLRESTRAINED THE COST OF INTERMEDIATE GOODS FELL 02 AFTER A 01 DROP IN OCTOBER THE COST OF CRUDE GOODS WAS UP 04 AFTER A 14 JUMP IN OCTOBER DONALD MAUDE CHIEF ECONOMIST FOR SCOTIAMCLEOD IN NEW YORK POINTED OUT HOWEVER THAT THE CRUDE PRICES MINUS FOOD AND ENERGY WERE UP A STRONG 17 IN NOVEMBER THIS COULD BE THE FIRST SIGN THAT THE STRENGTHENING PACE OF ECONOMIC ACTIVITY MAY BE FIRMING UP DEMAND AND PRICES FOR MANUFACTURING RAW MATERIALS MR MAUDE SAID SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE BY 13000 TO 335000 IN THE WEEK ENDED DEC 4 THE WEEK BEFORE CLAIMS FELL BY 17000 THE FOURWEEK MOVING AVERAGE OF CLAIMS CONSIDERED A BETTER MARKER OF LABOR MARKET CONDITIONS IS STILL TRENDING DOWN THEY FELL TO 333500 FROM 339250 IN THE PREVIOUS WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR NOVEMBER BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM NOVEMBER 1992 9312100104 931210 IN UK BRAND IDENTITY AND LEADERSHIP STILL SWAY CONSUMER BUYING DECISIONS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WITH ALL THE TALK OF DECLINING BRAND LOYALTY THESE DAYS ANYTHING SUGGESTING THAT BRAND LEADERSHIP HAS SOME LEGITIMACY IS BOUND TO GET ATTENTION D'ARCY MASIUS BENTON & BOWLES THE UK'S THIRD LARGEST ADVERTISING AGENCY HAS PRESENTED A STUDY IN EUROPE THAT TRIES TO MEASURE AND DEFINE BRAND LEADERSHIP FIRST DONE IN THE US THE LEADERSHIP STUDY AIMS TO HELP CLIENTS ESTABLISH THEIR BRAND AS THE NO 1 WITH CONSUMERS BECAUSE THAT IS A POSITION THAT ALMOST INEVITABLY LEADS TO HIGHER SALES AND PROFITS AS THEY SAY NOTHING SUCCEEDS LIKE SUCCESS CONSUMERS LIKE TO BUY THEIR PERCEIVED LEADER SAYS SALLY FORDHUTCHINSON EXECUTIVE PLANNING DIRECTOR OF DMB&B IN LONDON IT GIVES BRANDS A HALO EFFECT AS THOUGH CONSUMERS WERE LOOKING THROUGH ROSECOLORED GLASSES BRAND IDENTIFICATION IS QUITE HIGH IN BRITAIN ACCORDING TO THE UK STUDY WHICH WAS BASED ON 14 FOCUS GROUPS AS WELL AS QUANTITATIVE SURVEYS 99 OF BRITS CAN NAME WHAT THEY THINK IS THE NO 1 CEREAL NINETYEIGHT PERCENT CAN NAME AN INSTANT COFFEE BRAND LEADER AND 97 CAN NAME BOTH A CHOCOLATE BAR AND A TEA BAG THESE CONSUMERS ARE ALSO VERY INCLINED TO BUY BRANDS THEY THINK ARE THE LEADERS SEVENTYSIX PERCENT SAY THEY WILL BUY THE NO 1 COFFEE AND 79 SAY THEY WILL BUY THE LEADING FILM BRAND SEVENTYEIGHT PERCENT SAY KODAK IS THE LEADING FILM BRAND A MERE 6 THINK FUJI IS THE BRAND LEADER MORE INTERESTING PERHAPS IS THE WAY IN WHICH BRAND LEADERS CAN BE CATEGORIZED DMB&B HAS BROKEN BRAND LEADERS INTO POWER BRANDS IDENTITY BRANDS OR THE ULTIMATE LEADER THE ICON BRAND POWER BRANDS IN THE UK ARE SUCH THINGS AS PROCTER & GAMBLE'S FLASH LIQUID CLEANER WHICH SINCE 1964 HAS BEEN ADVERTISED AS BETTER THAN THE OTHER NONAME LIQUID CLEANER FROM 1964 UNTIL THE PRESENT FLASH HAS GONE UP AGAINST THE OTHER CLEANER IN A FLOOR WASHOFF TO SHOW THAT FLASH CLEANS QUICKER AND BETTER MANUFACTURERS WITH BRANDS IN THIS AREA HAVE TO HEAVILY INVEST IN R&D TO KEEP CONSUMERS FEELING THAT THE PRODUCT IS TECHNICALLY BETTER THAN THE COMPETITION SAYS MS FORDHUTCHINSON LIFEBUOY THE DEODORANT SOAP WAS ONCE A POWER BRAND UNTIL MEN STARTED USING DEODORANT AND NO LONGER WANTED IT IN THEIR SOAP SHE SAYS IN ADVERTISING POWER BRANDS THE PRODUCT IS ALWAYS THE HERO POWER BRANDS CAN BECOME IDENTITY BRANDS IF CONSUMERS START TO BELIEVE THEY ARE LIKE THE PERSON SHOWN USING THE BRAND THIS IS A CLASSIC AREA IN UK ADVERTISING SAYS MS FORDHUTCHINSON THESE BRANDS GIVE CONSUMERS THE EMOTIONAL SECURITY THAT IN USING SAY OXO INSTANT SOUP CUBES THEY WILL BE JUST LIKE THE BUSY BUT SMART HOUSEWIFE SHOWN IN THE AD THESE BRANDS CAN TRANSFER ACROSS BORDERS BUT IF YOU'RE SHOWING A BRITISH HOUSEWIFE THAT MAY NOT BE APPROPRIATE IN ITALY SAYS MS FORDHUTCHINSON THEN THERE ARE THOSE MOST POWERFUL OF BRANDS THAT AD AGENCIES DREAM ABOUT THOSE FEW BRANDS THAT COMPANIES HAVE BUILT THROUGH HUGE BUDGETS OVER DECADES THE ICON BRANDS EVOKE A UNIVERSAL DREAM WORLD TO WHICH EVERYONE WANTS TO BELONG AMERICANS PARTICULARLY TEND TO CREATE A WORLD OF MYTHOLOGY AND FOLKLORE THAT BECOMES A VERY POWERFUL DRAW COCACOLA IS SUCH A BRAND AS IS MCDONALD'S AND WALT DISNEY SUCH BRANDS HAVE BIG PRODUCTION BUDGETS TO PRODUCE THE WOW FACTOR AS WELL AS PROMOTIONAL CAMPAIGNS THAT ENCOURAGE CONSUMERS TO TRY THEM BUDWEISER IN THE US IS AN ICON BRAND BUT IN THE UK IT IS ONLY AN IDENTITY BRAND THAT BRITS WHO LIKE THE FEELING OF AMERICA IDENTIFY WITH ICONS CAN ALSO FALL OFF THEIR PEDESTALS MARTINI AN ALCOHOLIC DRINK USED TO BE A BRAND IN THE UK THAT EVOKED THE GLAMOUR OF INTERNATIONAL TRAVEL BUT WHEN PEOPLE STARTED TRAVELING THEMSELVES IT BECAME A REALITY AND IT WASN'T THE SAME AS THE DREAM PRESENTED BY MARTINI SAYS MS FORDHUTCHINSON HOVIS THE UK BROWN BREAD ONCE EVOKED NOSTALGIA WITH ALL THE OTHER WHOLEGRAIN BREADS ON THE MARKET THAT DREAM HAS BECOME IRRELEVANT SIMILARLY SAYS MS FORDHUTCHINSON COKE MAY BE IN DANGER OF TAMPERING WITH ITS ICON STATUS BY GOING DIRECTLY TO A SLEW OF PRODUCTION COMPANIES FOR ITS ADVERTISING WITHOUT AN OVERARCHING THEME THERE IS NO DREAM HOW MUCH ALL THIS WILL TRANSLATE ACROSS BORDERS IS DEBATABLE MS FORDHUTCHINSON SAYS SOME OF THE BASIC CONCEPTS ARE COMMON BUT THERE ARE KEY DIFFERENCES IN THE WAY DIFFERENT NATIONALITIES VIEW PRODUCTS AS WELL AS HOW ADVERTISING CAN AFFECT THOSE PERCEPTIONS THE FRENCH FOR INSTANCE COME OUT MUCH LOWER THAN THE BRITISH ON WHAT ADVANTAGES BRAND LEADERS OFFER IN THE FORMER WEST GERMANY THE PERCENTAGE OF PEOPLE WHO CITE ADVERTISING AS A REASON FOR THINKING A BRAND IS A LEADER IS ABOUT 20 LOWER THAN IN FRANCE ITALY AND THE UK FORMER EAST GERMANS ARE EVEN LESS WILLING TO BELIEVE ADS DMB&B SAYS THEY ARE 30 LESS LIKELY TO GIVE ADVERTISING AS A REASON FOR VIEWING A BRAND AS A LEADER THAN OTHER EUROPEAN COUNTRIES 9312100103 931210 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN UNITED GLOBAL INC AN OFFERING OF 800000 UNITS OF STOCK AND WARRANTS AT 525 A UNIT VIA CHATFIELD DEAN & CO COMMONWEALTH EDISON CO A SHELF OFFERING FOR 1 BILLION OF DEBT SECURITIES AND CUMULATIVE PREFERENCE STOCK MEAD CORP A SHELF OFFERING FOR 200 MILLION OF DEBT SECURITIES PACCAR FINANCIAL CORP A SHELF OFFERING FOR UP TO 1 BILLION OF SENIOR DEBT SECURITIES VIA MERRILL LYNCH & CO MORGAN STANLEY & CO LEHMAN BROTHERS AND SALOMON BROTHERS INC 9312100102 931210 AIRCRAFT FIRMS ASK TO REMOVE ISSUE AT GATT BY ASRA Q NOMANI AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA THE US AIRCRAFT INDUSTRY DISTURBED BY THE US POSITION ON AIRCRAFT SUBSIDIES IN WORLD TRADE TALKS PUSHED TO TAKE THE CONTENTIOUS ISSUE OFF THE TABLE THE ACTION CAME AS NEGOTIATORS FACED HEATED DISPUTES IN SHIPPING DUMPING AND MARKET ACCESS ALTHOUGH THE OVERALL TALKS STILL APPEAR HEADED FOR COMPLETION BY NEXT WEDNESDAY'S DEADLINE IT'S BECOMING INCREASINGLY CLEAR THAT A NUMBER OF NEGOTIATORS AND CORPORATE OFFICIALS WILL LEAVE TOWN DISGRUNTLED AFTERWARD FOR ONE THING MANY DEVELOPING COUNTRIES BELIEVE THEY MAY BE GETTING SHORT SHRIFT IN THE TALKS EUROPEAN COMMUNITY AND JAPANESE OFFICIALS CONCEDED THAT THE INDUSTRIALIZED AND DEVELOPING COUNTRIES WILL HAVE TO CONTINUE HASHING OUT DETAILS OVER MARKET ACCESS EVEN AFTER A PACT HAS BEEN REACHED ONLY ABOUT 25 COUNTRIES WILL HAVE PLAYED A SUBSTANTIAL PART IN THE NEGOTIATIONS THE EUROPEANS SAID WHILE THOSE NATIONS REPRESENT ABOUT 90 OF WORLD TRADE THE DEALS WOULD EXCLUDE MANY DEVELOPING COUNTRIES MANY OF WHOSE NEGOTIATORS ARE NOW THREATENING TO WITHDRAW CONCESSIONS IF THEY DON'T GET BETTER ACCESS TO INDUSTRIAL COUNTRIES' MARKETS YESTERDAY'S CONTINUED BANTER LED PETER SUTHERLAND GATT'S DIRECTOR GENERAL TO TELL REPORTERS THERE IS NO ISSUE LEFT ON THE TABLE THAT HASN'T BEEN ADDRESSED AD NAUSEUM FOR THE LAST SEVEN YEARS WHEN THESE TALKS WERE BEGUN IN URUGUAY WHILE ACKNOWLEDGING THERE ARE SIGNIFICANT ISSUES YET TO BE RESOLVED IN THE TALKS MR SUTHERLAND SAID I DON'T ENVISION A COLLAPSE EXCEPT PERHAPS MY OWN AT A SUMMIT OF EC LEADERS IN BRUSSELS TODAY AND TOMORROW EC GOVERNMENTS WILL TRY TO PREVENT INTERNAL DISPUTES OVER GATT FROM UNDERMINING A WORLD TRADE DEAL ON THE AIRCRAFT DISPUTE US INDUSTRY OFFICIALS TOLD US TRADE NEGOTIATORS HERE THAT THEY WANT TO SHELVE DISCUSSIONS ON SUBSIDIES FOR LARGE CIVIL AIRCRAFT IN THE CURRENT GATT TALKS INSTEAD THE US AND MEMBERS OF THE EUROPEAN COMMUNITY WOULD CONTINUE THEIR FIGHT ON THE ISSUE IN NEGOTIATIONS OVER THE NEXT YEAR SO FAR EUROPEAN COUNTRIES HAVE BALKED AT THE OFFER BUT IN A LETTER TO US TRADE REPRESENTATIVE MICKEY KANTOR TOP OFFICIALS AT GENERAL ELECTRIC CO BOEING CO MCDONNELL DOUGLAS CORP AND UNITED TECHNOLOGIES CORP SAID DIFFICULTIES THIS WEEK IN REACHING AN AGREEMENT PROVIDE THEM AN EVEN FIRMER POSITION THAT THE INTERIM SOLUTION IS THE ONLY VIABLE ONE THE INTERIM SOLUTION REFERS TO A DEC 1 PROPOSAL THAT THE US AND EC WOULD AGREE TO A SIDE LETTER UNDER WHICH BOTH SIDES WOULD WORK FOR A YEAR TO RESOLVE THEIR DIFFERENCES THE INDUSTRY NOW FEARS THAT IN THE CURRENT TALKS THE US IS TAKING A POSITION THAT WOULD UNDERMINE A USEC DEAL THAT LIMITED SUBSIDIES FOR AIRBUS INDUSTRIE A EUROPEAN AIRCRAFT CONSORTIUM IN A STATEMENT AEROSPACE INDUSTRIES ASSOCIATION PRESIDENT DON FUQUA SAID HIS GROUP MAY OPPOSE A GATT DEAL IN THE LETTER TO MR KANTOR THE EXECUTIVES SAID THE CONCESSIONS THAT MAY BE OBTAINED BY THE US IN THE NEGOTIATIONS ARE PROCEDURAL IN NATURE WITH LITTLE PRACTICAL VALUE OR IMPACT THE EC ON THE OTHER HAND WOULD GAIN REAL BENEFITS THE LETTER SAID MEANWHILE A DISPUTE SURFACED YESTERDAY OVER SHIPPING THE EC'S CHIEF NEGOTIATOR HUGO PAEMEN SAID THE US HAD WITHDRAWN CONCESSIONS IT HAD OFFERED EARLIER ON MARITIME TRANSPORT CREATING A SERIOUS SITUATION IN THE TRADE TALKS IT'S BAD NEWS HE SAID MR KANTOR ISSUED A STATEMENT SAYING MR PAEMEN WAS WRONG AND THAT THE US OFFER STILL WAS ON THE TABLE RICHARD SELF A US NEGOTIATOR ON SERVICES BLAMED EUROPEAN NEGOTIATORS FOR CAVING INTO INTERNAL PRESSURE ON THE EC BY GREECE WHICH HE CLAIMED IS PUSHING TO PROTECT ITS BIG SHIPPING INDUSTRY FROM FOREIGN COMPANIES BY DROPPING LIBERALIZED SHIPPING TERMS FROM THE TALKS ANOTHER HURDLE IN THE TALKS IS A US INSISTENCE ON PROVISIONS THAT WOULD INCREASE GOVERNMENT ACTIONS AGAINST THE SOCALLED DUMPING OF IMPORTS AT UNFAIRLY LOW PRICES THE US STANCE IS ATTRACTING CRITICISM FROM NOT ONLY OTHER TRADE NEGOTIATORS BUT US COMPANIES SUCH AS HEWLETTPACKARD CO INTERNATIONAL BUSINESS MACHINES CORP CARGILL INC AND PHILIP MORRIS COS MANY OF THEIR LOBBYISTS WERE IN TOWN ARGUING A MOVE IN THAT DIRECTION WOULD MAKE IT MORE DIFFICULT TO EXPORT THERE ALSO APPEARED TO BE LITTLE PROGRESS IN THE USEC DISPUTE OVER LIFTING FRENCH QUOTAS ON US FILMS AND TELEVISION PROGRAMS IN WASHINGTON MR KANTOR MOVED TO APPEASE THE POTENTIALLY FIERY OPPOSITION OF ENVIRONMENTALISTS TELLING LEADERS OF A DOZEN ENVIRONMENTAL GROUPS THAT THE US HAD MADE PROGRESS IN RESOLVING CONCERNS THAT A GATT PACT WOULD UNDERMINE ENVIRONMENTAL LAWS LARRY WILLIAMS DIRECTOR FOR INTERNATIONAL PROGRAMS AT THE SIERRA CLUB SAID MR KANTOR IS MAKING A VERY GOOD FAITH EFFORT TO DO WHAT HE CAN TO OVERCOME THESE OBSTACLES BUT NEITHER THE SIERRA CLUB NOR OTHER ENVIRONMENTAL GROUPS AT THE MEETING SAID THEY WERE READY TO ENDORSE A GATT PACT SPECIFICALLY THE ENVIRONMENTALISTS SAID THEY WERE TOLD BY MR KANTOR THAT THE US WAS WINNING SUPPORT FOR A PLAN TO FORM AN ENVIRONMENTAL COMMITTEE WHICH WOULD BECOME PART OF A NEW MULTILATERAL TRADE ORGANIZATION THAT ORGANIZATION IS PLANNED AS A SUCCESSOR TO THE GATT AND WOULD HAVE BROADER POWERS THAN THE GATT THE SCOPE OF THE ENVIRONMENTAL COMMITTEE ISN'T CLEAR BUT IT COULD BECOME A VEHICLE FOR THE MTO TO CONSIDER A BROAD RANGE OF ENVIRONMENTAL ISSUES MR KANTOR DIDN'T COMMENT ON THE MEETING WITH THE ENVIRONMENTAL GROUPS BUT US OFFICIALS CONFIRMED THE ACCURACY OF THE ENVIRONMENTALISTS' ACCOUNT OF THE SESSION BOB DAVIS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9312100101 931210 THE BUSINESS OF LAW LEGAL BEAT DELAWARE PROPOSES BUSINESS COURT TO SPEED RESOLUTION OF DISPUTES BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL DELAWARE ALREADY A PREMIER BUSINESS HOST IS LAYING PLANS TO LET COMPANIES RESOLVE COMMERCIAL DISPUTES IN SPEDUP COURT PROCEEDINGS THAT DISPENSE WITH JURIES AND ELIMINATE PUNITIVE DAMAGES THE PROPOSAL STRONGLY SUPPORTED BY GOV TOM CARPER AND THE STATE'S BUSINESS AND LEGAL COMMUNITIES IS PARTLY A RESPONSE TO GROWING COMPETITION FROM OTHER STATES SEEKING TO BECOME FAVORED CORPORATE HOMES IT IS EXPECTED TO BE IMPLEMENTED EARLY NEXT YEAR THE PLAN IS MEANT TO ACCOMMODATE DELAWAREBASED COMPANIES' CONCERNS THAT LITIGATION OF BUSINESS DISPUTES THROUGH THE STATE'S COURTS COSTS TOO MUCH AND TAKES TOO LONG EQUALLY IMPORTANT ACCORDING TO THE PROPOSAL IS TO MAKE DELAWARE ALL THE MORE ATTRACTIVE AS A SITE FOR INCORPORATION THE SOCALLED SUMMARY PROCEDURES ACT WOULD COMBINE ELEMENTS OF LITIGATION WITH ASPECTS OF SUCH PRIVATE DISPUTERESOLUTION TECHNIQUES AS ARBITRATION BUSINESS LITIGANTS IN CASES WITH POTENTIAL DAMAGES OF 1 MILLION OR MORE COULD CHOOSE EITHER A TRADITIONAL JURY TRIAL OR AN EXPEDITED RESOLUTION BEFORE A DELAWARE STATE JUDGE IF BOTH PARTIES AGREED TO THE LATTER OPTION STREAMLINED PROCEDURES WOULD APPLY THE PRETRIAL FACTFINDING PROCESS KNOWN AS DISCOVERY AND THE FILING OF MOTIONS WOULD BE LIMITED HEARINGS WOULD BE SCHEDULED SOONER THAN IN TYPICAL CASES AND PARTIES COULD SUBMIT WRITTEN REPORTS AND ARGUMENTS IN LIEU OF TESTIMONY FROM WITNESSES THE PLAINTIFF WOULD HAVE TO PAY A 5000 FILING FEE TO USE THE SYSTEM CRUCIALLY THE TWO VARIABLES THAT TERRIFY BUSINESSES THE MOST UNPREDICTABLE JURIES AND POTENTIALLY CRIPPLING PUNITIVEDAMAGE AWARDS WOULD BE ELIMINATED ALL SPEEDYTRIAL CASES WOULD BE HEARD BY A JUDGE EITHER FROM THE DELAWARE SUPERIOR COURT OR THE DELAWARE CHANCERY COURT WHAT'S UNIQUE ABOUT THIS IS THAT IT ASKS BUSINESSES TO GIVE UP SOMETHING WHICH IS FULLBLOWN DISCOVERY THE PRIMARY SOURCE OF DELAYS AND COST IN CIVIL LITIGATION SAYS LEO STRINE GENERAL COUNSEL TO GOV CARPER AND IF THEY AGREE TO LIMIT THAT THEN DELAWARE COURTS WILL AGREE TO TRY TO PROMPTLY DISPOSE OF THEIR CASES DELAWARE'S CHANCERY COURT OFTEN IS CITED AS A PRIME REASON THAT SO MANY COMPANIES NEARLY HALF OF THOSE LISTED ON THE NEW YORK STOCK EXCHANGE ARE INCORPORATED IN THE STATE THAT COURT DEALS WITH MATTERS OF CORPORATE GOVERNANCE SUCH AS HOSTILE TAKEOVERS AND SHAREHOLDER SUITS THE PROPOSED BUSINESS COURT PLANNED FOR MORE ROUTINE LITIGATION SUCH AS CONTRACT DISPUTES IS EXPECTED TO WIDEN RECOURSE DELAWARE'S CIVIL CASELOAD HAS DOUBLED SINCE 1983 TO 15000 FILINGS LAST YEAR FROM 7500 ON AVERAGE CASES TAKE MORE THAN 2 1/2 YEARS TO GET TO TRIAL ACCORDING TO COURT STATISTICS THE IDEA OF SPECIALIZED BUSINESS COURTS ALSO IS PICKING UP INTEREST ELSEWHERE ALREADY DELAWARE IS FACING COMPETITION FROM NEW YORK WHICH OPENED AN ALLBUSINESS COURT IN MANHATTAN EARLY THIS YEAR IN WHICH FOUR JUDGES NOW HEAR THE BULK OF THE BOROUGH'S COMMERCIAL DISPUTES IN PENNSYLVANIA A COALITION HEADED BY WESTINGHOUSE ELECTRIC CORP'S GENERAL COUNSEL HAS BEEN BUILDING POLITICAL AND CORPORATE SUPPORT FOR A CHANCERY COURT OVER THE PAST THREE YEARS BAR ASSOCIATIONS AND BUSINESSES IN CALIFORNIA NEW JERSEY ILLINOIS AND MINNESOTA ALSO HAVE EXPRESSED INTEREST IN CREATING BUSINESS COURTS BUT FOR NOW CHANCES OF SUCCESS ARE STRONGEST IN DELAWARE DRAFT LEGISLATION IS ALREADY IN THE HANDS OF GOV CARPER THE ONLY DEBATE IS WHETHER TO ENACT THE CHANGE LEGISLATIVELY OR THROUGH A CHANGE IN COURT RULES COUPLED WITH A JOINT RESOLUTION BY THE DELAWARE GENERAL ASSEMBLY WHICHEVER WAY SAYS STEVEN ROTHSCHILD AN ATTORNEY WITH THE FIRM OF SKADDEN ARPS SLATE MEAGHER & FLOM WHO HEADED A TASK FORCE THAT LOOKED INTO COMMERCIALLITIGATION REFORM FOR THE GOVERNOR THE NEW COURT COULD BE IN PLACE WITHIN 60 DAYS MR STRINE SAYS THE QUESTION IS MORE OF HOW RATHER THAN IF CORPORATE COUNSEL FOR MAJOR BUSINESSES IN DELAWARE PREDICT THAT THE NEW PROCEDURE WILL BE PARTICULARLY WELL SUITED FOR COMPLEX TECHNICAL DISPUTES JOHN F SCHMUTS GENERAL COUNSEL FOR DUPONT CO SAYS THE APPROACH APPEARS SUPERIOR TO PRIVATE ARBITRATION BECAUSE DELAWARE JUDGES' DECISIONS WILL BE BOUND BY PRECEDENT AND SUBJECT TO APPEAL WHILE ARBITRATION INCREASINGLY IS BEING USED BY BUSINESSES TO SETTLE DISAGREEMENTS IT HAS BEEN CRITICIZED FOR INCONSISTENT AND ARBITRARY DECISIONS FAILURE TO FOLLOW EVIDENTIARY RULES USED IN COURT AND TOO MUCH VARIATION IN THE QUALITY OF ARBITRATORS JOURNALISTS WERE BARRED FROM ASKING JURORS ABOUT EACH OTHERS' VOTES AND DISCUSSIONS IN THE CASE OF EDDIE ANTAR FOUNDER OF THE DEFUNCT CRAZY EDDIE INC ELECTRONICS CHAIN WHO WAS CONVICTED OF FRAUD THE DECISION BY US DISTRICT JUDGE NICHOLAS H POLITAN IN NEWARK NJ WAS MORE RESTRICTIVE THAN THAT OF MANY OTHER JUDGES WHO HAVE RULED ON JOURNALISTS' ACCESS TO JURORS NEWSMEDIA LAWYERS SAID THE NEWARK STARLEDGER SAID IT WOULD APPEAL 9312100100 931210 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC AGREEMENT IS SIGNED TO GET FUNDS TO HOTEL FRANCHISEES HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ SAID IT SIGNED AN AGREEMENT WITH A UNIT OF NOMURA SECURITIES CO TO PROVIDE FUNDS TO ITS FRANCHISEES FOR REFINANCING AND ACQUIRING HOTELS UNDER THE AGREEMENT NOMURA ASSET CAPITAL CORP WILL BUY MORTGAGE LOANS FOR FRANCHISEES OF HOSPITALITY FRANCHISE'S FIVE BRANDS DAYS INN HOWARD JOHNSON RAMADA SUPER 8 AND PARK INNS THE FRANCHISEES WILL HAVE ACCESS TO AN INITIAL 200 MILLION AND THE COMPANY SAID IT EXPECTS TO MAKE MORE MONEY AVAILABLE HOSPITALITY FRANCHISES SAID THE FUNDS WILL BE PROVIDED TO CURRENT FRANCHISEES FOR REFINANCING OR TO HOTEL OWNERS CONSIDERING CONVERTING TO A COMPANY BRAND NEW CONSTRUCTION WON'T BE ELIGIBLE HOSPITALITY FRANCHISE'S STOCK FELL 25 CENTS TO 4950 IN LATE COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9312100099 931210 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CONSTRUCTION OF THE TUNNEL UNDER THE ENGLISH CHANNEL LINKING BRITAIN AND FRANCE IS FINISHED MORE THAN A YEAR LATE AT A COST ULTIMATELY EXPECTED TO TOTAL 15 BILLION DOUBLE THE INITIAL BUDGET THE ANGLOFRENCH BUILDING CONSORTIUM TRANSMANCHE LINK TODAY WILL TURN THE 31MILE PROJECT OVER TO EUROTUNNEL PLC WHICH WILL OPERATE IT UNTIL JULY 28 2042 THE SOCALLED CHUNNEL CONSISTS OF TWO RAIL TUNNELS ONE EACH FOR PASSENGER AND FREIGHT SHUTTLE SERVICES WHICH ARE TO BE OFFICIALLY OPENED MAY 6 1994 THE CONNECTION HAS BEEN SOUGHT FOR MORE THAN TWO CENTURIES THE FIRST RECORDED PLANS WERE BY A FRENCH ENGINEER ALBERT MATHIEU IN 1753 A FRENCH ARMY ENGINEER TRIED TO BORE A TUNNEL IN 1880 UNDER A 1973 ANGLOFRENCH PACT DIGGING HAD BEGUN WHEN BRITAIN KILLED THE JOB IN 1975 IN 1985 THE TWO GOVERNMENTS INVITED BUSINESSES TO DEVISE A NEW PLAN AND WORK BEGAN IN DECEMBER 1987 CHINESE AIRLINES IN THIS YEAR'S FIRST 10 MONTHS CARRIED 28 MILLION PASSENGERS DOMESTICALLY UP 22 FROM A YEAR EARLIER TRAFFIC FOR 1993 COULD JUMP 20 HEADY GROWTH THOUGH A SLOWDOWN FROM 1992'S 33 SURGE BY NEXT SPRING CARRIERS WILL ADD 35 ROUTES BOOSTING FLIGHTS 15 TO 6000 A WEEK THE AVIATION INDUSTRY'S BREAKNECK EXPANSION STEMS FROM A RUSH OF BUYING AND RENTING PLANES BY LOCAL GOVERNMENTS AND PRIVATE FIRMS AFTER REGULATORY CONTROLS WERE EASED IN THE 1980S ALSO CONTRIBUTING TO INCREASED ACCIDENTS LAST YEAR 310 PEOPLE WERE KILLED IN FIVE PLANE CRASHES THE GERMAN CABINET APPROVED IN PRINCIPLE A HIGHSPEED MAGNETIC TRAIN LINK BETWEEN BERLIN AND HAMBURG THE COUNTRY'S TWO LARGEST CITIES A FINAL DECISION IS EXPECTED IN MARCH ON THE RAILWAY SYSTEM WHICH COULD COST 53 BILLION FINANCED BY GOVERNMENT AND INDUSTRY THE TRANSRAPID TRAIN WHICH COULD BEGIN OPERATING IN THE YEAR 2004 COULD ACCOMMODATE 332 PASSENGERS AT TRAVEL HOVERING SLIGHTLY ABOVE THE TRACKS AT 248 MILES PER HOUR COMPLETING THE 176MILE JOURNEY IN LESS THAN AN HOUR ROMANIA AND THE INTERNATIONAL MONETARY FUND AGREED ON TERMS OF A 696 MILLION LOAN WHICH FIRST REQUIRES PASSAGE OF FINANCIAL LEGISLATION THE DEAL ALSO WILL RELEASE LOANS OF 130 MILLION FROM THE WORLD BANK AND 50 MILLION FROM JAPANESE COFINANCING IMF LENDING TO ROMANIA DRIED UP IN 1991 BECAUSE OF DISSATISFACTION WITH A REFORM PROGRAM BUT THIS YEAR THE IMF SAID ROMANIA LIBERALIZED PRICES REMOVED SUBSIDIES AND ALTERED ITS TAX SYSTEM THE GOVERNMENT PROMISED TO REDUCE INFLATION RUNNING AT MORE THAN 300 A YEAR INCREASE PRODUCTION DOWN 50 FROM 1989 LEVELS AND SPEED UP INDUSTRIAL SELLOFFS MEXICO CITY'S MEASURES TO REDUCE POLLUTION DURING THE DRY AND WINDLESS WINTER MONTHS ARE INADEQUATE MEXICAN AND GLOBAL ENVIRONMENTAL GROUPS SAID QUESTIONING GOVERNMENT REPORTS OF IMPROVEMENTS FROM DECEMBER THROUGH MARCH CONTAMINANTS HANG ABOVE THE MOUNTAINRINGED CITY OF 20 MILLION PEOPLE WITH THE WORLD'S HIGHEST LEVELS OF OZONE A RESPIRATORY ENEMY AND CARBON MONOXIDE LEVELS EXCEEDING INTERNATIONAL NORMS MOST ANTIPOLLUTION MEASURES ARE AIMED AT THE CITY'S 35 MILLION MOTOR VEHICLES CITY AND FEDERAL PATROLS FOR DETECTING POLLUTERS WERE TRIPLED TO 150 OIL REFINERS WILL PRODUCE CLEANER FUELS FACTORIES WILL BE MONITORED CHINA BANNED COLLEGECAMPUS CELEBRATIONS OF FOREIGN HOLIDAYS INCLUDING CHRISTMAS VALENTINE'S DAY AND APRIL FOOL'S DAY HOLDING YULETIDE PARTIES AND SENDING VALENTINES HAVE BECOME STUDENT FADS IN PROHIBITING ORGANIZED OBSERVANCES CHINA'S EDUCATION AGENCY AIMS TO ACHIEVE A RELATIVELY STABLE CULTURAL TRADITION ON COLLEGE CAMPUSES AND PROMOTE OUR COUNTRY'S FINE NATIONAL CULTURE FOREIGN STUDENTS AND TEACHERS MAY CONTINUE TO CELEBRATE THEIR OWN HOLIDAYS CHINA SAID ITS ADVISERS ON HONG KONG MUST BEGIN MAKING UNILATERAL ARRANGEMENTS FOR THE BRITISH COLONY'S POST1997 LEGISLATURE THE APPROACH COUNTERS HONG KONG GOV CHRIS PATTEN'S PLAN TO BROADEN PARTICIPATION IN 1994 AND 1995 ELECTIONS BUT CHINA'S STANCE AT A PREPARATORY WORK COMMITTEE MEETING WAS LESS HARSH THAN EXPECTED AS BEIJING HAS SUGGESTED IT WOULD END TALKS WITH BRITAIN THAT HAVE DRAGGED THROUGH 17 ROUNDS OF DISPUTES AND RECRIMINATIONS CHINA BLAMED THE UK FOR THE CURRENT DEADLOCK BUT STOPPED SHORT OF SAYING NEGOTIATIONS HAD BROKEN DOWN INDICATING THEY COULD RESUME THE COMMITTEE IS MADE UP OF 57 CHINESE AND HONG KONG PUBLIC FIGURES PREPARING FOR THE 1997 RETURN OF HONG KONG TO CHINESE RULE MANY IN HONG KONG FEAR THE GROUP AS A SHADOW GOVERNMENT UNDERMINING BRITAIN'S REMAINING COLONIAL AUTHORITY MR PATTEN COULD INITIATE TODAY HIS PLAN TO SUBMIT A REVISED VERSION OF THE POLITICALREFORM PACKAGE TO HONG KONG LEGISLATORS AN EXPERIMENTAL SIXCAR BULLET TRAIN SET A JAPANESE RAIL SPEED RECORD OF 252 MILES PER HOUR BREAKING THE 244MPH MARK SET TWO DAYS EARLIER A FRENCH TRAIN HOLDS THE WORLD RECORD OF 322 MPH ABOUT HALF OF FRANCE'S COMMUTER AND LONGDISTANCE TRAINS WERE IDLED AS 17 OF THE 192000 EMPLOYEES OF THE STATE RAILROAD COMPANY SNCF STAGED A ONEDAY STRIKE TO PROTEST AUSTERITY PROPOSALS IN THE UNPROFITABLE SYSTEM'S 1994 BUDGET SUCH AS SLASHING 7100 JOBS AND LIMITING PAY INCREASES 9312100098 931210 CREDIT MARKETS TREASURY PRICES RISE A LITTLE AS SLIGHT INCREASE IN CORE RATE OF INFLATION IS EXPLAINED AWAY BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF LONGTERM TREASURY SECURITIES ROSE SLIGHTLY AS TRADERS EXPLAINED AWAY NEWS SHOWING A SLIGHT INCREASE IN THE CORE INFLATION RATE BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE CENTER OF ATTENTION YESTERDAY WAS SUPPOSED TO BE THE MORNING'S EAGERLY AWAITED PRODUCERPRICE INDEX REPORT FOR NOVEMBER AND INITIALLY TRADERS FOUND PLENTY TO RESPOND TO THE LABOR DEPARTMENT REPORTED THE PPI WAS UNCHANGED DURING THE MONTH BUT WHAT THE MARKET LATCHED ONTO WAS AN UNEXPECTED 04 RISE IN THE SOCALLED CORE RATE THE PPI EXCLUDING FOOD AND ENERGY TREASURY PRICES DROPPED IN A FLURRY OF SELLING BUT THE DECLINES PROVED SHORTLIVED AS TRADERS REALIZED THAT MOST OF THE 04 INCREASE WAS DUE TO A 21 GAIN IN CAR PRICES THAT JUMP IN AUTO PRICES FOLLOWED A 39 PLUNGE IN OCTOBER RATHER THAN REPRESENTING REAL CHANGES IN PRICES THE INCREASE REFLECTS DIFFICULTY SEASONALLY ADJUSTING THAT COMPONENT AROUND THE NEW MODEL YEAR SAID DOUG SCHINDEWOLF MONEYMARKET ECONOMIST AT SMITH BARNEY SHEARSON INC AS A RESULT THE MARKET VIEWED THE REPORT AS AN ABERRATION MR SCHINDEWOLF SAID IT DID NOT INFLICT DAMAGE TO THE UNDERLYING INFLATION TREND WE HAVE VIRTUAL PRICE STABILITY AT THE PRODUCER LEVEL ONCE SENTIMENT SHIFTED TO THE VIEW THAT THE DATA DID NOT REFLECT AN UPSWING IN INFLATION PRICES SPURTED HIGHER THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/4 POINT OR LESS THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 101 7/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 615 FROM 616 ON WEDNESDAY MEANWHILE ARGENTINA COMPLETED THE SALE OF 1 BILLION OF NONCALLABLE 10YEAR GLOBAL NOTES YESTERDAY THE NOTES WERE PRICED WITH A COUPON OF 8375 AT 99368 TO YIELD 847 28 PERCENTAGE POINTS ABOVE THE YIELD OF THE 10YEAR US TREASURY NOTE ACCORDING TO JAMES B QUIGLEY HEAD OF GLOBALDEBT OFFERINGS AT MERRILL LYNCH WELL OVER HALF OF THE INVESTORS IN NORTH AMERICA WHO PURCHASED THE ARGENTINA NOTES HAD NEVER INVESTED IN DEVELOPINGNATION DEBT MARKETS THESE BUYERS WERE NOT THE TRADITIONAL HIGHYIELD OR EMERGING MARKETS INVESTORS SAID MR QUIGLEY AND INCLUDED INSURANCE COMPANIES SOME PENSION FUNDS AND CORPORATE BOND FUNDS IT'S FAIR TO SAY THAT WITH THIS DEAL LATIN AMERICAN AND OTHER EMERGING MARKETS HAVE EMERGED HE SAID GLOBAL NOTES ARE SECURITIES SOLD SIMULTANEOUSLY IN THE WORLD'S MAJOR MARKETS THE OFFERING FROM ARGENTINA WAS THE FIRST JUNKRATED GLOBAL OFFERING AS WELL AS THE FIRST GLOBAL OFFERING FROM A LATIN AMERICAN NATION THE NOTES WERE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE AND DOUBLEBMINUS BY STANDARD & POOR'S THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH SALOMON BROTHERS INC AND BANCO RIO DE LA PLATA SA AN INVESTMENT BANK IN ARGENTINA WHEN ARGENTINA BEGAN LOOKING FOR UNDERWRITERS FOR THE OFFERING JUST A FEW WEEKS AGO MANY IN THE MARKET DID NOT EXPECT IT TO BE ABLE TO SELL THE NOTES AT A YIELD THAT WAS LESS THAN THREE PERCENTAGE POINTS ABOVE US TREASURY NOTES SAID MR QUIGLEY IT IS A CULMINATION OF TWO TRENDS IN 1993 SAID MR QUIGLEY THE TENDENCIES OF INVESTORS TO BUY LOWERRATED CREDITS AND TO SEEK BONDS WITH LONGER MATURITIES IN SECONDARYMARKET TRADING LATE YESTERDAY THE PRICE OF THE ISSUE ROSE ABOUT 30 CENTS FOR EACH 1000 FACE VALUE ACCORDING TO ONE MONEY MANAGER MEANWHILE IN THE US TREASURY MARKET PRICES SEESAWED FOR MOST OF THE DAY AFTER THE INITIAL GYRATIONS IN RESPONSE TO THE INFLATION REPORT AMID THE GYRATIONS SECURITIES MATURING IN 10 YEARS OR MORE OUTPERFORMED SHORTER MATURITIES TRADERS WERE REPORTED TO BE SETTING ARBITRAGE TRADES BETTING THAT THE YIELD GAP SPREAD BETWEEN SHORTTERM AND LONGTERM MATURITIES WOULD NARROW KNOWN AS YIELDCURVE FLATTENING TRADES TRADERS INITIATE THOSE POSITIONS THROUGH BUYING BONDS WHILE SELLING THE SHORTER ISSUES WE'VE HAD A RUSH TO THE FLATTENERS SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO BEHIND THE REEMERGENCE OF THE CURVE FLATTENING TRADES WAS A GROWING SENSE THAT THE FEDERAL RESERVE MAY HAVE TO PUSH INTEREST RATES HIGHER NEXT YEAR IF THE ECONOMY SUSTAINS A FASTER PACE OF GROWTH INTO THE FIRST QUARTER OF 1994 THE PPI DATA DID LITTLE TO CHANGE THAT PERCEPTION FOR THE MONTH INFLATION IS OK BUT THAT DOESN'T MEAN THAT DOWN THE ROAD WE MIGHT NOT SEE SOME PROBLEMS MR LEUZZI SAID ANALYSTS SAID IT IS JUST THAT CONCERN THAT HAS PROMPTED FED OFFICIALS TO MAKE RUMBLINGS THAT INDICATE SHORTTERM INTEREST RATES MAY BE ON THE WAY NORTH ON TUESDAY FED VICE CHAIRMAN DAVID MULLINS SAID THE CENTRAL BANK CANNOT AFFORD TO WAIT UNTIL INFLATION APPEARS IN THE OFFICIAL STATISTICS BEFORE ACTING YESTERDAY AFTERNOON FED GOVERNOR SUSAN PHILLIPS WAS QUOTED AS SAYING THAT WHILE INFLATION IS NOT CURRENTLY A PROBLEM CAPACITY CONSTRAINTS ON THE ECONOMY COULD CAUSE INFLATION PRESSURES TO BUILD NEXT YEAR IN THE MEANTIME TRADERS MUST STILL CONTEND WITH A REPORT ON THE NOVEMBER CONSUMERPRICE INDEX WHICH IS SCHEDULED TO BE RELEASED TODAY FORECASTS CENTER ON A 02 RISE IN THE CPI WITH A 03 GAIN EXCLUDING FOOD AND ENERGY LAST MONTH THE CPI PROVED A BEARISH SURPRISE FOR THE BOND MARKET THE INDEX GAINED 04 OVERALL IN OCTOBER OR 03 EXCLUDING FOOD AND ENERGY THE TREASURY SOLD 1610 BILLION OF ONEYEAR BILLS YESTERDAY AT AN AVERAGE DISCOUNT RATE OF 347 HERE ARE THE DETAILS FROM THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED DEC 16 AND MATURE DEC 15 1994 THE NEW ISSUE CORPORATE DEBT MARKET SAW 221 BILLION OF DEBT PRICED YESTERDAY INCLUDING ARGENTINA'S 1 BILLION GLOBAL OFFERING MOST DEALS WENT WELL ACCORDING TO SYNDICATE OFFICIALS AND ARE EXPECTED TO TRADE WELL IN THE AFTER MARKET ANOTHER GLOBAL NOTE ISN'T FARING NEARLY AS WELL AS THE ARGENTINA NOTE SOLD YESTERDAY WORRIES ABOUT A BREWING POLITICAL CRISIS BETWEEN THE US AND NORTH KOREA HAVE PUSHED DOWN THE PRICE OF KOREA ELECTRIC POWER CO'S 6 3/85 COUPON 10YEAR GLOBAL NOTES SINCE THEY WERE SOLD LAST MONTH THE PRICE OF THE NOTES HAS DROPPED TWO POINTS OR 20 FOR A BOND WITH 1000 FACE VALUE SINCE THEY WERE SOLD TO 9655 THE YIELD HAS RISEN TO 68 FROM 6575 SIMILARLY KOREA DEVELOPMENT BANK SOLD DEBT LAST MONTH AT 098 PERCENTAGE POINT OVER TREASURYS AND THE SPREAD HAS WIDENED TO 130 PERCENTAGE POINTS KDB'S 6 3/4 COUPON 12YEAR NOTES HAVE DROPPED 129 POINTS OR 1290 FOR A BOND WITH A 1000 FACE VALUE TO 9833 THE YIELD ROSE TO 695 FROM 6797 NORTH KOREA HAS BEEN IN THE NEWS PRACTICALLY EVERY DAY SINCE THE DEALS WERE SOLD NOTING NORTH KOREA'S WEAK ECONOMY AND ITS REFUSAL TO LET OFFICIALS INSPECT ITS NUCLEAR POWER PLANTS MUNICIPAL BONDS FINISHED UNCHANGED TO 3/8 POINT HIGHER YESTERDAY HAVING REMAINED STRONG AFTER GAINING AS MUCH AS 1/2 POINT LAST SESSION TRADERS SAY THERE'S NO END IN SIGHT TO THE CLIMB THAT BEGAN A WEEK AGO AS DEMAND REMAINS STRONG BEFORE THE HEAVY BOND CALLS NEXT MONTH THAT WILL DRAIN SUPPLY FROM THE MARKET NEW YORK CITY'S 550 FISCAL 1994 SERIES D GENERAL OBLIGATION BONDS DUE 2004 FINISHED UNCHANGED AT 99 1/2 TO 100 YIELDING 550 HOWEVER THE FLORIDA BOARD OF EDUCATION'S 5125 BONDS DUE 2018 CLOSED 3/8 POINT HIGHER AT 97 5/8 YIELDING 528 BECAUSE THE ONGOING PRICE RISE IS DEPRESSING YIELDS NEWISSUE ACTIVITY REMAINS VERY BRISK AS THE YEAR DRAWS TO A CLOSE THIS SESSION'S SUPPLY UNUSUALLY HEAVY FOR A THURSDAY TOTALED MORE THAN 750 MILLION NATIONSBANK CORP'S FIRST CREDITCARD SECURITIZATION DREW DEMAND STRONG ENOUGH FOR THE GLOBAL DEAL TO BE BOOSTED IN SIZE AND QUICKLY SELL OUT YESTERDAY CHARLOTTE NCBASED NATIONSBANK THE NATION'S THIRDLARGEST BANK SOLD ITS FIRST CREDITCARD CERTIFICATES THROUGH UNDERWRITERS LED BY ITS NATIONSBANC CAPITAL MARKETS INC UNIT THE THREEYEAR MATURITY WAS INCREASED BY 250 MILLION TO 750 MILLION BECAUSE OF PARTICULARLY HEAVY ORDERS FOR THAT SEGMENT SAID JOHN GRIFF MANAGING DIRECTOR OF NATIONSBANC'S DEBTFINANCING GROUP OVERALL INVESTORS WERE A HEALTHY MIX OF INSURANCE AND TOTAL RETURNORIENTED ACCOUNTS HE ADDED JEFFREY SALMON ASSOCIATE AT JP MORGAN SECURITIES INC SAID NATIONSBANK'S CHOICE OF A 10YEAR MATURITY WAS BOLD FOR A FIRSTTIME ISSUER IN THAT ASSETBACKED MARKET SECTOR THE 10YEAR MATURITY ISN'T FREQUENTLY SEEN IN THAT SECTOR THE 750 MILLION SENIOR THREEYEAR PORTION WAS PRICED AS 475 AT 999063 TO YIELD 483 WHICH WAS 38 BASIS POINTS ABOVE THREEYEAR TREASURY NOTES THE 500 MILLION SENIOR 10YEAR PORTION WAS PRICED AS 6 AT 991719 TO YIELD 619 55 BASIS POINTS ABOVE COMPARABLE TREASURYS JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9312100097 931210 FOREIGN EXCHANGE DOLLAR EASES AGAINST MOST CURRENCIES IN LACKLUSTER SESSION OF THIN TRADING BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR EASED A BIT AGAINST MOST MAJOR CURRENCIES THURSDAY IN ANOTHER QUIET DAY OF THIN YEAREND TRADING BUT IT DID MANAGE TO SHOW SOME PEP AGAINST ITS CANADIAN COUNTERPART AS BUYING BY SOME US FUNDS PUSHED IT THROUGH TECHNICAL LEVELS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17047 MARKS DOWN FROM 17075 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10865 YEN DOWN FROM 10888 YEN STERLING WAS TRADING AT 14940 OFF FROM 14950 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10885 YEN AND AT 17028 MARKS DEALERS SAID THE DOLLAR SPENT ANOTHER DAY IDLING AGAINST THE MARK AND THE YEN STUCK IN THE NARROW TRADING RANGES DEFINED DURING THE PAST FEW DAYS ABOUT THE ONLY POSSIBLE SPARK CAME EARLY IN NORTH AMERICAN TRADING WHEN SOME US INFLATION DATA FAILED TO PROVIDE ANY SUPPORT FOR SOME RECENT SPECULATION THAT US INTEREST RATES COULD RISE SOON THAT POSSIBILITY HAD ALWAYS BEEN A LONG SHOT WITH MOST ANALYSTS SEEING FEW INFLATION PRESSURES THREATENING THE US ECONOMY BUT WHEN NOVEMBER'S PRODUCER PRICE INDEX CAME IN ALMOST EXACTLY ON TARGET THE RESULT STAMPED OUT ANY CHANCE OF A DOLLAR RALLY LEAVING IT TO LANGUISH FOR THE REST OF THE DAY THE US LABOR DEPARTMENT REPORTED THAT PRODUCER PRICES AT THE FINISHED LEVEL WERE UNCHANGED IN NOVEMBER WHILE THE CORE RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS ROSE 04 FOR THE MONTH WHILE ANALYSTS HAD EXPECTED A SLIGHTLY SMALLER INCREASE IN THE CORE RATE THEY NOTED THAT MUCH OF THE GAIN WAS DUE TO A 21 INCREASE IN PASSENGER CAR PRICES RATHER THAN OVERALL INFLATION PRESSURES THEY ADDED THAT THE RISE TO SOME EXTENT OFFSET OCTOBER'S 05 DROP IN THE CORE RATE LEAVING PRICES ALMOST UNCHANGED IT WAS PRETTY MUCH A NONEVENT SAID THOMAS BENFER FOREIGNEXCHANGE MANAGER AT BANK OF MONTREAL IN NEW YORK THE DOLLAR IS STILL KIND OF STUCK HERE AGAINST THE MARK AND YEN HE ADDED TRADERS PREDICTED THAT UNLESS SOME SURPRISING NEWS BROKE THE DOLLAR SHOULD STAY BETWEEN 170 MARKS AND 172 MARKS IN THE NEAR TERM LIMITING ANY DOLLAR GAINS THEY SAID IS THE FACT THAT SO MANY INVESTORS HAVE MADE HEAVY DOLLAR PURCHASES IN RECENT WEEKS LIMITING THE AMOUNT OF NEW BUYING THAT CAN EMERGE TO FUEL GAINS ABOVE THE 172MARK LEVEL AT THE SAME TIME RECENT US ECONOMIC NEWS HAS BEEN SO ENCOURAGING THAT FEW PLAYERS ARE INTERESTED IN DOING ANY MAJOR SELLING THE DOLLAR IS SIMILARLY TRAPPED AGAINST THE YEN TRADERS NOTED ALTHOUGH THEY ADDED THAT HEAVY SALES ORDERS FROM JAPANESE EXPORTERS JUST ABOVE THE 109 YEN LEVEL ARE AN ADDITIONAL FACTOR LIMITING ANY STRONG DOLLAR GAINS ELSEWHERE THE DOLLAR PUSHED THROUGH A KEY TECHNICAL LEVEL AT AROUND 13260 CANADIAN DOLLARS TRIGGERING SOME STOPLOSS ORDERS THAT DROVE IT EVEN HIGHER BY LATE NEW YORK TRADING THE US CURRENCY WAS CHANGING HANDS AT C13283 DOLLARS UP FROM C13230 DOLLARS LATE WEDNESDAY 9312100096 931210 INTERNATIONAL WORLD ECONOMY LATE LOUD OBJECTIONS TO GATT IN US ARE NOT LIKELY TO BLOCK ITS FAST TRACK BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS NEGOTIATORS ENTER THE FINAL HOURS OF THEIR SEVENYEAR STRUGGLE TO DRAFT A NEW TRADE TREATY A SURPRISING NUMBER OF AMERICANS AREN'T PLEASED WITH ITS TENTATIVE TERMS THEY'RE WARNING THE CHIEF US BARGAINER MICKEY KANTOR TO DO BETTER AT THE LAST MINUTE OR ELSE PRECISELY WHAT THOSE TERMS WILL BE REMAINS UNCERTAIN AND SO DOES THE OR ELSE BUT A COUPLE OF POINTS SEEM LIKELY THE FINAL TREATY WON'T OPEN GLOBAL MARKETS ANYWHERE NEAR AS MUCH AS OFFICIALS SOUGHT WHEN THEY LAUNCHED NEGOTIATIONS BACK IN 1986 SOME CRITICS COMPLAIN PRESIDENT CLINTON WANTS A DEAL AT NEARLY ANY COST MOST US BUSINESS GROUPS WILL BACK ITS RATIFICATION ANYWAY DESPITE COMPROMISES THEY DISLIKE RELATIVELY FEW WILL CAMPAIGN AGAINST IT EVEN THOUGH OPPOSITION IS THE MAIN OR ELSE THEY HAVE AT HAND SO THERE SOON WILL BE A NEW TREATY FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO ADMINISTER PLUS SOME NEW BUREAUCRATIC MACHINERY TO DO THE JOB THE US IS UNLIKELY TO BECOME THE ONLY NATION TO REJECT THE NEW RULES ALTHOUGH SOME COMPANIES UNIONS AND ENVIRONMENTAL GROUPS WILL PROTEST WHEN CONGRESS PASSES JUDGMENT NEXT SPRING THE OTHER 115 SIGNERS ARE SURE TO SAY YES THE TREATY CLEARLY WILL DO SOME GOOD THINGS IT WILL SLASH OR ABOLISH TARIFFS ON HUNDREDS OF INDUSTRIAL PRODUCTS RANGING FROM ELECTRONICS TO PAPER TO TEXTILES IT WILL FREE TRADE IN AGRICULTURAL GOODS MODESTLY IT WILL OPEN MARKETS FOR LUCRATIVE SERVICE INDUSTRIES SLIGHTLY AND IT SHOULD PREVENT SOME BAD THINGS SUCH AS CREATION OF REGIONAL TRADING BLOCS THAT MIGHT RETARD ECONOMIC GROWTH THERE ARE TWO MAIN REASONS WHY MANY AMERICAN BUSINESSMEN AREN'T CONTENT THEY THINK THE ONCEAMBITIOUS GATT EFFORT FAILS TO OPEN KEY FOREIGN MARKETS ADEQUATELY WHILE LEAVING FOREIGNERS RELATIVELY FREE TO ENTER THE US AND DESPITE MR KANTOR'S MANY PROMISES TO THE CONTRARY THEY THINK IT WILL WEAKEN US TRADE LAWS EXCESSIVELY MAKING IT DIFFICULT TO RETALIATE AGAINST UNFAIR PRACTICES WE'RE AT A POINT WHERE THE AIMS OF MARKET ACCESS ARE CLEARLY NOT GOING TO BE MET COMPLAINS A LEADING LOBBYIST FOR BANKS AND OTHER FINANCIAL INSTITUTIONS FROM MY PERSPECTIVE WE SEEM TO BE GIVING UP TOO MUCH AND NOT GETTING ENOUGH IN RETURN ADDS LAWRENCE CHIMERINE VICE PRESIDENT OF THE ECONOMIC STRATEGY INSTITUTE A THINK TANK THAT WANTS TOUGH TRADE LAWS TO PRY OPEN JAPANESE AND OTHER MARKETS AMONG THE DISAPPOINTED ARE FINANCIALSERVICE TRADERS SUCH AS BANKS INSURANCE COMPANIES AND SECURITIES FIRMS HIGHLY COMPETITIVE OVERSEAS THEY HAD HOPED GATT WOULD THROW OPEN ECONOMIES SUCH AS INDIA AND SOUTH KOREA PLUS SEVERAL IN LATIN AMERICA AND SOUTHEAST ASIA NO SUCH LUCK THESE COUNTRIES HAVE RESISTED SUCCESSFULLY SO THE US HAS RESORTED TO A UNILATERAL POLICY OF BLOCKING THEIR AMERICAN EXPANSION UNTIL THEY RELAX THEIR OWN CURBS AND FINANCIERS WORRY THAT MR KANTOR MAY BARGAIN AWAY EVEN THIS WEAPON FOR INADEQUATE RETURNS AMONG THE DISGRUNTLED INDUSTRIALISTS ARE THE USUAL SUSPECTS TEXTILE AND STEEL MAKERS FOR EXAMPLE FACE STIFF FOREIGN COMPETITION AND WANT PUNITIVE TRADE LAWS IN ADDITION MORE OUTWARDLOOKING MANUFACTURERS SUCH AS MOTOROLA INC AND EASTMAN KODAK CO HAVE SPECIAL PROBLEMS WITH JAPAN THE PHARMACEUTICAL INDUSTRY WANTS MORE PATENT PROTECTION AND FEWER FOREIGN LAWS FORCING IT TO LICENSE PRODUCTS ON UNWANTED TERMS BUSINESS AGENTS ARE PLEADING FOR MIDNIGHT REVISIONS HERE AND IN GENEVA WHERE TRADE TALKS ARE BEING COMPLETED AND WHERE FLOCKS OF WASHINGTON LOBBYISTS HAVE MIGRATED FOR THE OCCASION MEANTIME MR KANTOR'S RECENT MAIL INCLUDES PLEAS FROM SUCH INTEREST GROUPS AS THE US CHAMBER OF COMMERCE THE EMERGENCY COMMITTEE FOR AMERICAN TRADE THE SERVICES POLICY ADVISORY COMMITTEE AND A MOTLEY COLLECTION OF 68 COMPANIES THREE ASSOCIATIONS SEVEN UNIONS AND 24 ACADEMICS OR FORMER TRADE OFFICIALS CLEARLY ALL THEIR WISHES WON'T BE FULFILLED SO WHAT WILL THEY DO BACK THE TREATY ANYWAY IN MANY CASES BANKS MAY NOT LIKE MARKETACCESS CLAUSES THAT AFFECT THEM FOR EXAMPLE BUT THEIR INDUSTRIAL CLIENTS WANT THE TARIFF CUTS MANY COMPLAINTS ARE PROMPTED BY THE SOCALLED FASTTRACK RULES WHICH REQUIRE CONGRESS TO VOTE YES OR NO ON FINAL TERMS WITHOUT AMENDMENTS UNDER THIS PROCEDURE PRESSURE GROUPS THAT DON'T GET THEIR WAY NOW WON'T GET IT AT ALL THE STRUCTURE OF FAST TRACK TEMPTS PEOPLE TO SCREAM BLOODY MURDER SAYS ONE VETERAN LOBBYIST NOW PARKED IN GENEVA BUT WOULD THEY WALK AWAY FROM THE FINAL TREATY I DOUBT IT 9312100095 931210 REVIEW & OUTLOOK EDITORIAL TIME TUNNEL YESTERDAY THE DELAWARE SUPREME COURT EFFECTIVELY REPEALED FOR PARAMOUNT'S SHAREHOLDERS ITS FOURYEAROLD TIMEWARNER DECISION BUT UNLESS THE COURT DOES BETTER THAN THE REASONING HANDED DOWN ORALLY FROM THE BENCH IT CAN EXPECT TO SPEND ETERNITY MAKING THE SAME APOLOGIES FOR TIME TO AN ENDLESS PARADE OF STOCKHOLDERS WHAT'S NEEDED IS A CLEAR RETREAT ONE THAT REENSHRINES THE NOTION THAT ALL COMPANIES NOT JUST PARAMOUNT ARE RUN FOR THE BENEFIT OF THEIR OWNERS FOR NOW CHIEF JUSTICE NORMAN VEASEY'S SPOKEN COMMENTS MERELY UPHOLD THE SPADEWORK OF CHANCELLOR JACK JACOBS BUT DO NOTHING TO WIDEN THE ESCAPE TUNNEL DUG BY THE JUNIOR JUDGE IN EFFECT PARAMOUNT'S OWNERS CAN HAVE THEIR COMPANY BACK BUT ONLY BECAUSE THE BOARD OF DIRECTORS TRIED TO SELL A CONTROLLING INTEREST TO VIACOM AND VIACOM HAPPENS TO HAVE A DOMINANT SHAREHOLDER IN SUMNER REDSTONE WHOSE HOLDINGS HAVE BEEN SO INTERESTINGLY IN THE NEWS THIS WEEK BRING ON THE NEXT SET OF FACTS AT THIS RATE THE DELAWARE SUPREME COURT WILL BE BUSY CARVING OUT EXCEPTIONS TO A POOR RULE THROUGH THE END OF TIME OR TIME WHICHEVER COMES FIRST 9312100094 931210 REVIEW & OUTLOOK EDITORIAL CIVIL LIBERTIES OR CIVIL SECURITY SO WE'RE AGREED AFTER RICHARD ALLEN DAVIS STRANGLED POLLY KLAAS IN PETALUMA LAST WEEK AFTER COLIN FERGUSON SLAUGHTERED FIVE COMMUTERS IN NEW YORK THIS WEEK AFTER JESSE JACKSON AND OTHERS HAVE BEEN DEMANDING ACTION AGAINST BLACKONBLACK VIOLENCE WE'RE AGREED THE AMERICAN PEOPLE KNOW THEY HAVE A BIG PROBLEM WITH VIOLENT CRIME AND WANT SOMETHING DONE ABOUT IT OUR SENSE IS THAT THIS TIME THE ENDLESSLY TALKED ABOUT ISSUE OF VIOLENT CRIME HAS ARRIVED AT A CRITICAL JUNCTURE THIS TIME PERHAPS SOMETHING SERIOUS WILL BE DONE TOO MANY INNOCENT BODIES ARE PILING UP BLACK WHITE ASIAN LITTLE GIRLS THE POOR THE NONPOOR VOTERS SIGNALED IN THE RECENT ELECTIONS IN NEW YORK CITY NEW JERSEY AND VIRGINIA THAT CRIME WAS THEIR FOREMOST CONCERN REALISTICALLY THE ODDS ARE AGAINST AN EFFECTIVE ANTICRIME STRATEGY AFTER 25 YEARS THE SUBJECTS OF VIOLENCE AND CRIMINALS ARE SURROUNDED BY A VIRTUAL FORTRESS OF LIBERAL SHIBBOLETHS WHICH NOW EXIST AS LEGAL PRECEDENTS JUVENILE JUSTICE REGULATIONS POLICE PROCEDURES RECENTLY THE SUPREME COURT DIDN'T EVEN BOTHER TO TAKE ON THE NEW YORK CITY TRANSIT AUTHORITY'S APPEAL OF A COURT DECISION UPHOLDING A 43 MILLION JURY AWARD TO A MUGGER WHO WAS SHOT IN THE BACK AND PARALYZED BY A COP AFTER BEATING UP AN OLD MAN IN THE SUBWAY NEW YORK'S COURTS MADE THE MUGGER A MILLIONAIRE SETTING ASIDE THE SENSATIONAL CASES FOR A MOMENT HERE IS ONE SMALL BUT TELLING CASE ON MONDAY A PRIEST IN A RECTORY IN NORTHERN VIRGINIA SCARED OFF A BURGLAR BY SHOOTING AT HIM WITH A 9MM GUN BY WAY OF INFORMATION THE STATE'S PROSECUTOR NOTED YOU CAN'T SHOOT SOMEBODY IN THE BACK AS THEY'RE LEAVING THE SCENE HE'S RIGHT THAT WAS A FAMOUS CASE YEARS AGO BUT MOST PEOPLE ALREADY KNOW THE JUSTICE SYSTEM IS NOW AWASH IN THESE INANITIES PUT BLUNTLY THE REIGNING CIVILLIBERTIES MODEL HAS BECOME DANGEROUS IT NEEDS TO BE RETHOUGHT UNTIL THIS WEEK'S KILLINGS HOWEVER THE SYSTEM WAS PRODUCING JUST MORE OF THE SAME WHICH IS TO SAY THE BRADY BILL OUR PROBLEM WITH THE BRADY BILL WASN'T THE GUNCONTROL ISSUE BUT THAT ITS PROPONENTS SOMEHOW HAD CONVINCED THEMSELVES THAT THIS POPGUN SOLUTION A FIVEDAY WAITING PERIOD WOULD RELIEVE THEM OF RESPONSIBILITY FOR DOING ANYTHING MORE SERIOUS FOR INSTANCE HOW ABOUT A NATIONAL DIRECTORY OF MADMEN AS WITH THE COMMUTERS' KILLER MANY OF THE MEN WHO'VE COMMITTED MASS SLAYINGS WITH SEMIAUTOMATICS WERE CRAZED INDIVIDUALS A COMPUTER DATA BANK OF CRIMINAL RECORDS IS IN FACT A PART OF THE BRADY BILL BUT IF WE HAD A DATA BANK OF FOLKS NOT ALLOWED TO BUY GUNS WOULD COLIN FERGUSON BE IN IT IF SOMEONE HAD BEEN EXPELLED FROM TWO EDUCATIONAL INSTITUTIONS FOR DISCIPLINARY REASONS HAD THREATENED FACULTY MEMBERS HAD THREATENED PROSPECTIVE LAWYERS TO THE POINT WHERE THEY LOCKED THEIR OFFICE DOORS HAD BEEN ARRESTED FOR ASSAULT ON THE SUBWAY BUT RELEASED WITH THE HELP OF A LEGAL AID LAWYER WOULD THAT BE ENOUGH OR WOULD THE CIVIL LIBERTARIANS SUCCEED IN PROTECTING HIM FROM THE STIGMA WE NEED TO RECOGNIZE THAT THE PROBLEM IS NOT CONTROLLING GUNS BUT CONTROLLING MADMEN ON GUNS YESTERDAY ATTORNEY GENERAL RENO SECONDED PRESIDENT CLINTON'S REMARKS ON THE COMMUTER SLAYING THAT ACQUIRING A GUN SHOULD BE ANALOGOUS TO GETTING A DRIVER'S LICENSE YOU SHOULD HAVE TO BE ABLE TO SHOW YOU CAN USE IT PROFICIENTLY INDEED A PROFICIENT LICENSED GUN HOLDER ON THAT TRAIN MIGHT HAVE SAVED SOME LIVES WOMEN'S GROUPS ARGUE TODAY OVER WHETHER WOMEN SHOULD ARM THEMSELVES GALLUP JUST FOUND THAT AN AMAZING 30 OF PEOPLE POLLED IN OCTOBER SAID THEY'VE BOUGHT A GUN FOR PROTECTION FORTY YEARS AGO IN AMERICA SUCH THOUGHTS WOULD NEVER OCCUR BUT THIS ISN'T 1953 WE ALL KNOW THAT OR DO WE WE HAVE A JUVENILE JUSTICE SYSTEM DESIGNED TO SHIELD 1953'S JUVENILE DELINQUENTS THE HEAD OF NEW YORK CITY'S FAMILY COURT WROTE IN A LETTER TO THE TIMES RECENTLY FOR SEVEN YEARS NEW YORK CITY HAS ATTEMPTED TO GET THE STATE LEGISLATURE TO MODIFY THE LAW THAT DOES NOT ALLOW JUVENILES TO BE FINGERPRINTED FOR VIOLENT FELONIES LIKE POSSESSION OF A LOADED GUN AND EVEN FOR CERTAIN ASSAULTS COMMITTED WITH A HANDGUN THE LAWMAKERS HAVE REFUSED SUCH A CHANGE FOR FEAR OF STIGMATIZING YOUNG OFFENDERS TO ACHIEVE A MEANINGFUL SYSTEM FOR GUN CONTROL IN THIS STATE IT IS NECESSARY TO IDENTIFY ALL THE OFFENDERS THAT HAVE BEEN ARRESTED YOUTHS WHO BRING GUNS INTO OUR CLASSROOMS STREETS SHOPPING MALLS AND SUBWAYS HAVE NO RECORD WITH THE STATE'S DIVISION OF CRIMINAL JUSTICE SERVICES POSSESSION OF A GUN BY A JUVENILE GUARANTEES THAT YOUTH PERPETUAL FIRSTOFFENDER STATUS THE LEGISLATORS ARE OVERWHELMINGLY LIBERAL WE PLACE THE ONUS ON LIBERAL OFFICIALS BECAUSE WITHOUT THEIR VOTES NOTHING MUCH WILL CHANGE TO DATE THEIR OUTRAGE OVER VIOLENT DEATHS HAS BEEN A POSE NOR WILL ANYONE BE VERY IMPRESSED IF THEY START YELLING FOR LONGER JAIL TERMS THE PROBLEM IS IN THE STREETS AND IN THE COURTROOMS THE PROBLEM IS A PANOPLY OF CIVIL LIBERTIES RULINGS WHOSE REALWORLD EFFECTS HAVE NOW UNDERMINED THE ORIGINAL ARGUMENTS ON THEIR BEHALF THE LAW IS NOT A SUICIDE PACT WE FULLY EXPECT THAT OUR POSITION HERE WILL BE STRETCHED AND MISREPRESENTED INTO SOMETHING IT IS NOT OUR POSITION IS THAT ALL OPTIONS BELONG UP ON THE TABLE FOR DISCUSSION AND RECONSIDERATION WE'RE NOT SUGGESTING A POLITICAL STAMPEDE WE'RE SUGGESTING IT IS TIME FOR OUR POLITICIANS AND INTELLECTUALS TO STEP UP TO THE GHASTLY CRIMINAL PROBLEMS STRETCHING FROM PETALUMA TO LONG ISLAND AND GET SERIOUS ABOUT ENSURING THIS COUNTRY'S CIVIL SECURITY 9312100093 931210 BUSINESS BRIEF MORRISON KNUDSEN CORP COMPANY BUYS A 33 STAKE IN GERMAN COAL CONCERN MORRISON KNUDSEN CORP BOISE IDAHO SAID IT ACQUIRED 33 OF ONE OF THE FORMER EAST GERMANY'S STATEOWNED MINING COMPANIES TERMS WEREN'T DISCLOSED MORRISON KNUDSEN A CONSTRUCTION AND ENGINEERING CONGLOMERATE SAID IT ACQUIRED THE STAKE IN MITTELDEUTSCHE BRAUNKOHLENGESELLSCHAFT MGH A COAL MINING CONCERN THAT HAS AN ESTIMATED 400 MILLION IN ANNUAL REVENUE MORRISON KNUDSEN BOUGHT THE STAKE FROM THE GERMAN GOVERNMENT AGENCY IN CHARGE OF PRIVATIZING FORMER EAST GERMAN STATE ENTERPRISES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MORRISON KNUDSEN CLOSED AT 25 UP 125 CENTS 9312100092 931210 BUSINESS BRIEF MORGAN KEEGAN INC FIRM SAYS 2NDPERIOD PROFIT MAY EXCEED 1STQUARTER NET MORGAN KEEGAN INC MEMPHIS TENN CURRENTLY IN ITS FISCAL SECOND QUARTER IS ON TRACK TO MATCH OR SLIGHTLY EXCEED ITS PERFORMANCE IN THE FIRST QUARTER SAID ALLEN MORGAN JR CHAIRMAN IN ITS FIRST QUARTER ENDED OCT 31 THE REGIONAL INVESTMENT FIRM REPORTED EARNINGS OF 84 MILLION OR 58 CENTS A SHARE ON RECORD REVENUE OF 577 MILLION THAT COMPARED WITH FIRSTQUARTER 1993 EARNINGS OF 68 MILLION OR 49 CENTS A SHARE ON REVENUE OF 47 MILLION MR MORGAN SAID HE WOULD BE VERY SURPRISED IF THE FIRM DIDN'T SURPASS ITS PERFORMANCE DURING THE SECOND QUARTER OF FISCAL 1993 WHEN MORGAN KEEGAN REPORTED NET INCOME OF 72 MILLION OR 51 CENTS A SHARE ON REVENUE OF 494 MILLION MR MORGAN WHOSE COMPANY'S REVENUE HAS MORE THAN DOUBLED SINCE 1990 SAID COMMISSIONS HAVE BEEN THE PRIMARY DRIVING FORCE AT THE FIRM IN FISCAL 1993 COMMISSIONS ACCOUNTED FOR 153 MILLION OF THE FIRM'S 209 MILLION IN REVENUE MR MORGAN SAID THE FIRM'S GOAL IS TO BE THE DOMINANT INVESTMENT FIRM IN THE SOUTH ULTIMATELY GENERATING 1 BILLION IN REVENUE 9312100091 931210 BROWNINGFERRIS TO LIFT SPENDING 23 TO GAIN SHARE IN THE SLOW WASTE MARKET BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL BROWNINGFERRIS INDUSTRIES INC MOVING TO GRAB MARKET SHARE DURING A SLOWDOWN IN THE TRASHHAULING BUSINESS PLANS TO BOOST ITS CAPITAL SPENDING 23 FOR FISCAL 1994 TO 962 MILLION THE PLAN DISCLOSED IN THE COMPANY'S ANNUAL 10K FILING WITH THE SECURITIES AND EXCHANGE COMMISSION COMES AS A GLUT OF DISPOSAL CAPACITY IN SOME MARKETS HAS LED TO INTENSE PRICECUTTING IN THE NATION'S TRASH BUSINESS WE'RE GOING TO BE VERY AGGRESSIVE ON ACQUISITIONS SAID A SPOKESMAN FOR BROWNINGFERRIS THE COMPANY IN OCTOBER AGREED TO PAY 375 MILLION IN CASH AND STOCK FOR A 50 STAKE IN A GERMAN WASTE COMPANY OTTO WASTE SERVICES HOUSTONBASED BROWNINGFERRIS ALSO SAID IN THE FILING THAT IT'S PURSUING ACQUISITIONS IN THE TRASHINCINERATION BUSINESS A FIELD POISED FOR A SHAKEOUT WESTINGHOUSE ELECTRIC CORP HAS EXPLORED SELLING ITS TRASH BURNERS ALSO KNOWN AS WASTETOENERGY PLANTS BECAUSE THEY PRODUCE ELECTRICITY AND SMALLER PLAYERS IN THE BUSINESS HAVE BEEN UNHAPPY BECAUSE OF LOWERTHANEXPECTED PRICES AND VOLUMES BROWNINGFERRIS NO 2 AMONG HAULERS FELT THE DOWNTURN EARLIER THAN MOST BEGINNING IN 1991 AND HAS SINCE STRENGTHENED ITS BALANCE SHEET AND STREAMLINED OPERATIONS ITS CAPITAL SPENDING FOR FISCAL 1993 ENDED SEPT 30 WAS 784 MILLION NO 1 HAULER WMX TECHNOLOGIES INC HAS FELT THE PAIN OF INCREASED COMPETITION ONLY MORE RECENTLY AND ACKNOWLEDGED IN RECENT WEEKS THAT IT WOULD BE CUTTING CAPITAL SPENDING IN SOME BUSINESSES AND GENERALLY EXPECTS A LOWER RATE OF GROWTH A CREDITRATING DOWNGRADE WAS AMONG THE FACTORS THAT LED WMX BASED IN OAK BROOK ILL TO CURTAIL SPENDING PLANS BROWNINGFERRIS FELT THE DOWNTURN EARLIER IN PART BECAUSE ITS BUSINESS IS MORE CONCENTRATED IN THE NORTHEAST WHERE THE ECONOMY WAS HIT EARLIER THAN IN CALIFORNIA AND FLORIDA WHERE WMX HAS MORE BUSINESS BOTH COMPANIES HOWEVER COULD BENEFIT IN THE YEARS TO COME AS PRICECUTTING DRIVES SOME SMALLER HAULERS OUT OF THE TRASH BUSINESS THE SPENDING BY BROWNINGFERRIS WOULD HAVE BEEN HIGHER BUT THE COMPANY BACKED OUT OF PLANS IN OCTOBER TO BUY WESTERN WASTE INDUSTRIES INC A REGIONAL HAULER IN SOUTHERN CALIFORNIA FOR STOCK VALUED AT MORE THAN 400 MILLION SOME ANALYSTS HAD SAID THE PRICE WAS TOO HIGH IN ALL OF FISCAL 1993 THE COMPANY SPENT JUST 171 MILLION ON ACQUIRED BUSINESSES THE 1994 INCREASE IN SPENDING COULD FORCE BROWNINGFERRIS TO TAP INTO A 1 BILLION CREDIT LINE OFFICIALS COULDN'T BE REACHED ABOUT THAT BUT THE COMPANY SAID IN THE 10K THAT BORROWINGS ARE EXPECTED ADDITIONALLY BROWNINGFERRIS DISCLOSED FOR THE FIRST TIME ESTIMATES OF FUTURE ENVIRONMENTALCOMPLIANCE COSTS AT ITS 99 CURRENTLY OPERATING GARBAGE DUMPS FEDERAL AND STATE LAWS REQUIRE THAT DUMPS BE MONITORED FOR AS LONG AS 30 YEARS AFTER BEING CLOSED AND THAT THE MONEY TO DO SO BE SET ASIDE BY THE TIME OF CLOSING BROWNINGFERRIS WHICH ALREADY HAD ACCRUED 414 MILLION FOR SUCH COSTS AT THE 99 DUMPS SAID IT EXPECTS TO SPEND OR SET ASIDE ANOTHER 765 MILLION TO 815 MILLION BETWEEN NOW AND THE TIME THOSE DUMPS CLOSE THE COMPANY DIDN'T ESTIMATE HOW QUICKLY THOSE FUNDS WOULD BE NEEDED MANY OF THE DUMPS COULD REMAIN OPEN FOR DECADES THE DISCLOSURE ON DUMPCLOSING COSTS NOW REQUIRED IN 10KS SHOWS HOW CAPITAL INTENSIVE THE DISPOSAL BUSINESS HAS BECOME EVEN AT A TIME WHEN FALLING DUMP FEES IN SOME AREAS HAVE CUT INTO PROFITS 9312100090 931210 LETTERS TO THE EDITOR SOCIALISM COLLAPSED OR DIDN'T YOU NOTICE IN HIS NOV 17 LETTER FRANCO MODIGLIANI DOES NOT DENY MY CONTENTION IN MY OCT 16 EDITORIAL PAGE PIECE THAT THE CLINTONS' SOCIALIZED HEALTH CARE PLAN ADOPTS 1930SERA ITALIAN CORPORATISM AS ITS ORGANIZING PRINCIPLE INSTEAD HE MAKES THE CURIOUS ARGUMENTS THAT L ITALIAN CORPORATISM WAS A FAILURE ONLY BECAUSE MUSSOLINI DID NOT GIVE HIMSELF ENOUGH POWER CENTRAL CONTROL WAS ACTUALLY RATHER LOOSE AND 2 MUSSOLINI WAS NOT VERY GOOD AT MAKING POLITICAL APPOINTMENTS DELEGATING TOO MUCH POWER TO BIG CORPORATE INTERESTS IF THE RIGHT POLITICAL APPOINTMENTS ARE MADE ACCORDING TO MR MODIGLIANI THEN THE CLINTONS' SOCIALIZED HEALTH CARE PLAN MIGHT SUCCEED THE CLINTONS NEED ONLY TO DISREGARD THEIR PERSONAL POLITICAL AMBITIONS BUT THIS ARGUMENT IS ABSURD ANY PLAN TO SOCIALIZE HEALTH CARE IS BOUND TO BE DOMINATED BY SPECIALINTEREST POLITICS AS ARE ALL GOVERNMENT PROGRAMS MR MODIGLIANI'S CONTENTION THAT BILL CLINTON THE CONSUMMATE POLITICIAN WILL NOT PAY ATTENTION TO POLITICS WHEN APPOINTING AND MICROMANAGING HIS NATIONAL HEALTH BOARD IS LUDICROUS THE FATAL CONCEIT OF THE CLINTON HEALTH PLAN AND OF ALL SUCH CORPORATIST SCHEMES IS TO BELIEVE THAT IT IS POSSIBLE TO DIVORCE POLITICIANS FROM POLITICS AND THAT A SMALL GROUP OF CLEVER GOVERNMENT PLANNERS CAN POSSIBLY POSSESS THE KNOWLEDGE REQUIRED TO CENTRALLY PLAN SUCH A LARGE SEGMENT OF THE AMERICAN ECONOMY THESE ARE THE LESSONS OF THE WORLDWIDE COLLAPSE OF SOCIALISM BUT THEY ARE LOST ON THE CLINTONS AND THEIR INTELLECTUAL SUPPORTERS 9312100089 931210 LETTERS TO THE EDITOR GOVERNMENT ANGEL AIDED MIRACLE MAKER GENZYME CORP CEO HENRI TERMEER LAMENTS THE COST OF MIRACLES EDITORIAL PAGE NOV 16 THE PROSPECTS OF INCREASED SCRUTINY OF THE PRICING OF BREAKTHROUGH PRESCRIPTION DRUGS BUT HIS FREEMARKET BATTLE CRY TOLD ONLY PART OF THE STORY HE CITES HIS COMPANY'S PRODUCT CERADASE A TREATMENT FOR GAUCHER'S DISEASE AS AN EXAMPLE OF HOW MARKET FORCES WORK HOWEVER AS REPORTED BY CONSUMER REPORTS NATIONAL INSTITUTE OF HEALTH SCIENTISTS PLAYED A MAJOR ROLE IN DEVELOPING CERADASE THEY DISCOVERED THE MISSING ENZYME FIGURED OUT HOW TO HARVEST IT FROM HUMAN PLACENTAS MODIFIED IT CHEMICALLY TO TREAT THE DISEASE AND GAVE GENZYME 9 MILLION FOR EARLY CLINICAL RESEARCH THEN AFTER SPENDING 294 MILLION OF ITS OWN GENZYME GOT MARKETING APPROVAL IN 1991 AND WENT ON TO SELL 37 MILLION OF CERADASE THAT YEAR ACCORDING TO A FEBRUARY 1993 REPORT BY THE OFFICE OF TECHNOLOGY ASSESSMENT THE DRUG'S COST TO AN INDIVIDUAL WITH A SEVERE CASE OF GAUCHER'S DISEASE REACHES AS HIGH AS 550000 A YEAR WITH SUCH SUBSTANTIAL GOVERNMENT CONTRIBUTIONS THIS IS HARDLY THE FREE MARKET YES A REFORMED HEALTH CARE SYSTEM SHOULD PROVIDE INCENTIVES TO ENCOURAGE DRUG INNOVATION BUT OTA HAS ESTIMATED THAT DURING THE 1980S PHARMACEUTICAL COMPANIES EARNED ON AVERAGE ABOUT 15 TO 30 MORE PROFIT THAN NEEDED TO ATTRACT ADEQUATE INVESTMENT CAPITAL CONSUMER REPORTS RECOMMENDS THE CREATION OF A PRICE REVIEW BOARD WITH CONSUMER REPRESENTATIVES THAT WOULD HAVE ACCESS TO COMPANY FINANCIAL AND PRODUCTION DATA THIS APPROACH WOULD ASSURE CONSUMERS THAT INNOVATIVE DRUG COMPANIES GET A FAIR BUT NOT EXCESSIVE RETURN ON THEIR RESEARCH INVESTMENT SUCH A REGULATORY SYSTEM WOULD ERECT A BAR AGAINST PROFITEERING THAT WOULD SPAN THE ENTIRE DRUG INDUSTRY CONSUMERS UNION OF US 9312100088 931210 THE AMERICAS NICARAGUA A LAND WHERE OUTLAWS WEAR THE BADGES BY ROGER GUEVARA MENA MANAGUA LAST WEEK PRESIDENT CLINTON ANNOUNCED TO A GROUP OF VISITING CENTRAL AMERICAN LEADERS THAT HE WAS AUTHORIZING RELEASE OF A 40 MILLION PAYMENT TO NICARAGUA THE MONEY HAD BEEN WITHHELD BECAUSE OF CONCERNS ABOUT THE EROSION OF DEMOCRATIC INSTITUTIONS THE MISUSE OF US FUNDS AND CONTINUING SANDINISTA INFLUENCE IN THE GOVERNMENT MANY NICARAGUANS ARE WONDERING BY WHAT STANDARDS US OFFICIALS HAVE NOW DECIDED THAT THE GOVERNMENT OF NICARAGUA IS BEHAVING LIKE A RESPONSIBLE DEMOCRACY PERHAPS THE MOST FUNDAMENTAL ROLE OF A DEMOCRATIC GOVERNMENT IS TO PROVIDE FOR THE SAFETY AND SECURITY OF ITS CITIZENS ACCORDING TO THE RULE OF LAW BY THIS DEFINITION NICARAGUA'S GOVERNMENT FALLS SHORT OF MEETING ITS OBLIGATIONS I KNOW THIS FROM PERSONAL EXPERIENCE IN THE LATE AFTERNOON OF AUG 20 I WAS ATTENDING A POLITICAL MEETING HELD IN THE OFFICE OF NICARAGUA'S VICE PRESIDENT VIRGILIO GODOY THE MEETING WAS ORGANIZED BY UNITED NICARAGUAN OPPOSITION UNO THE MULTIPARTY COALITION THAT WON THE NATIONAL ELECTIONS AGAINST THE SANDINISTAS IN 1990 DESPITE THEIR ROLE IN HELPING TO ELECT PRESIDENT VIOLETA CHAMORRO UNO AND MR GODOY BECAME POLITICAL DISSIDENTS IN 1992 AFTER THEIR DEMANDS TO REMOVE SANDINISTA INFLUENCE IN THE MILITARY POLITICAL AND ECONOMIC REALM WERE IGNORED THE MOOD AT THE TIME WAS TENSE BECAUSE OF EVENTS IN THE NORTH OF THE COUNTRY WHERE A GROUP OF ARMED REBELS WERE HOLDING HOSTAGE SOME SANDINISTA MEMBERS OF THE NATIONAL ASSEMBLY AND MILITARY OFFICERS SUDDENLY THERE WERE SHOUTS AND GUNFIRE IN THE NEXT ROOM SECONDS LATER THREE MEN IN CAMOUFLAGE UNIFORMS ARMED WITH AUTOMATIC WEAPONS PISTOLS AND HAND GRENADES BURST THROUGH OUR DOOR IN SHORT ORDER SOMEONE WHO APPEARED TO BE THE LEADER ENTERED HIS SHIRT HAD THE INSIGNIA OF A SANDINISTA ARMY MAJOR FROM BEHIND THE KERCHIEF MASKING HIS FACE SANDINISTA ARMY MAJOR DONALDO MENDOZA ALIAS COMMANDO 31 SPOKE TO THE HOSTAGES IN AGGRESSIVE TERMS ASKING RHETORICAL POLITICAL QUESTIONS WHICH WE COULD NOT ANSWER BECAUSE OF THE MENACING WEAPONS FOR THE NEXT 100 HOURS WE WERE SUBJECTED TO CONSTANT PHYSICAL AND PSYCHOLOGICAL VIOLENCE THOSE OF US WHO HAD BEEN POLITICAL PRISONERS DURING THE SANDINISTA REGIME RECOGNIZED THE TECHNIQUES AT ONE POINT THREE OF US WERE STRIPPED DOWN TO OUR UNDERWEAR AND MADE TO STAND IN FRONT OF WINDOWS AS A KIND OF HUMAN WALL BETWEEN THE SHOTS SUPPOSEDLY BEING FIRED BY THE POLICE AND THE ANSWERING FIRE FROM THE AUTOMATIC RIFLES OF THE KIDNAPPERS POSITIONED BESIDE US APPARENTLY THE SKIRMISHES WITH THE POLICE WERE SIMULATED IN FACT THE KIDNAPPERS RECEIVED LOGISTICAL SUPPORT FROM THE SANDINISTACONTROLLED POLICE MANAGUA'S DAILY NEWSPAPER LA TRIBUNA THE ONLY NEWSPAPER IN THE COUNTRY NOT CONTROLLED BY THE CHAMORRO FAMILY PUBLISHED THE TRANSCRIPT OF A RECORDED RADIO CONVERSATION BETWEEN TWO JOURNALISTS WORKING FOR A SANDINISTA RADIO STATION ONE OF THE JOURNALISTS WAS INSIDE THE BUILDING WHERE THE KIDNAPPING WAS GOING ON AND THE OTHER WAS AT THE RADIO STATION'S HEADQUARTERS THE REPORTER ON THE INSIDE NOTICED THAT THE KIDNAPPERS WERE REPLENISHING THEIR NUMBERS WITH REINFORCEMENTS ALLOWED INTO THE BUILDING THROUGH POLICE AND MILITARY BARRICADES NEITHER THIS COOPERATION NOR THE CHARADE SURPRISED US OVER THE LAST THREE YEARS THERE HAVE BEEN OTHER CASES WHERE THE SANDINISTA MILITARY APPARATUS HAS STAGED SIMILAR DRAMAS WITH SANDINISTA PARAMILITARY FORCES THE PURPOSE OF THESE LITTLE SOAP OPERAS IS TO CREATE A CRISIS ATMOSPHERE IN WHICH THE SANDINISTA ARMY IS VIEWED AS INDISPENSIBLE FOR MAINTAINING PUBLIC ORDER ONE OF THE MOST RECENT CASES WAS A FAKED ASSAULT ON THE CITY OF ESTELI IN THE NORTH OF NICARAGUA BY FORMER SANDINISTA TROOPS THE ASSAULT COULD NOT HAVE OCCURRED WITHOUT THE ACQUIESCENCE OF THE SANDINISTA ARMY'S INTELLIGENCE I WAS THERE DAYS BEFORE THE EVENT OCCURRED AND THE WHOLE TOWN TALKED ABOUT THE FORTHCOMING ASSAULT BUT THE MILITARY DID NOTHING TO PREVENT IT THE ASSAULT CAUSED THE DEATHS OF SEVERAL BYSTANDERS BUT PRACTICALLY NONE OF THE SUPPOSED COMBATANTS WERE INJURED THE LEADER OF THE ASSAULTING PARAMILITARY FORCE FORMER SANDINISTA ARMY MAJOR VICTOR MANUEL GALLEGOS WAS ALLOWED BY THE SANDINISTA ARMY TO RUN AWAY TAKING WITH HIM MORE THAN 1 MILLION IN CASH FROM THE LOCAL BANKS HE HAS SINCE RECEIVED AMNESTY FROM THE CHAMORRO GOVERNMENT NICARAGUA HAS BECOME AN OUTLAW NATION IN WHICH THERE IS NO PUBLIC OR PRIVATE AUTHORITY TO WHICH CITIZENS CAN TURN FOR SECURITY INDEED THE OUTLAWS ARE IN CHARGE OF SECURITY DESPITE CLAIMS BY THE CHAMORRO ADMINISTRATION THAT THINGS HAVE CHANGED WHILE MUCH NOISE WAS MADE ABOUT THE RECENT DECISION TO FIRE THE DREADED SANDINISTA SECURITY CHIEF LENIN CERNA HE HAS SINCE BEEN PROMOTED TO INSPECTOR GENERAL OF THE ARMY THERE WAS GREAT HOPE AT THE BEGINNING OF MRS CHAMORRO'S ADMINISTRATION THAT NICARAGUA'S ECONOMY ONCE THE RICHEST IN CENTRAL AMERICA WOULD TAKE OFF AGAIN BUT ECONOMIC GROWTH IS IMPOSSIBLE WHEN PERSONAL PROPERTY AND SAFETY IS DAILY THREATENED BY THE AUTHORITIES THE RENEGADE NATURE OF THE SANDINISTA SECURITY FORCES MUST BE STOPPED HOWEVER THE CLOSE ALLIANCE BETWEEN ARMY CHIEF OF STAFF HUMBERTO ORTEGA AND PRESIDENT CHAMORRO AN ALLIANCE EXECUTED THROUGH HER SONINLAW MINISTER OF THE PRESIDENCY ANTONIO LACAYO MAKES ANY SUBSTANTIVE CHANGE IN THE DESTRUCTIVE INFLUENCE OF THE MILITARY IN SOCIETY IMPOSSIBLE UNO AND THE NATION HAVE BECOME FOCUSED ON BREAKING THAT ALLIANCE FOR THIS TO HAPPEN IT IS NECESSARY TO REMOVE MR ORTEGA FROM THE LEADERSHIP OF THE ARMY AND MR LACAYO FROM HIS POSITION AS PRESIDENT CHAMORRO'S MAIN ADVISER IT'S ALSO CRUCIAL TO HASTEN NEW ELECTIONS WHICH CURRENTLY ARE NOT SCHEDULED UNTIL 1997 FOR ALL OFFICES NATIONAL STATE AND LOCAL THE US STATE DEPARTMENT AND THE ORGANIZATION OF AMERICAN STATES ARE PUSHING FOR A SOLUTION OF THE CRISIS IN WHICH THE SANDINISTAS WOULD BE ON AN EQUAL FOOTING WITH UNO AND THE GOVERNMENT THIS SOLUTION SPELLS FAILURE BECAUSE IT DOES NOT RESPECT THE WILL OF THE NICARAGUAN PEOPLE WE SHOULDN'T FORGET THAT THE WINNING UNO COALITION REPRESENTS THE ASPIRATIONS OF THE MAJORITY OF NICARAGUANS THE CHAMORRO GOVERNMENT BY ITSELF REPRESENTS ONLY A TECHNICAL TEAM WITH NO POLITICAL BASE OF SUPPORT MOREOVER THE SANDINISTA PARTY LOST THE 1990 ELECTIONS AND HAS SINCE LOST CREDIBILITY IN THE NATION BECAUSE OF ITS BRAZEN THEFT OF PUBLIC PROPERTY MRS CHAMORRO WAS ELECTED BY NICARAGUANS TO LEAD BUT SHE IS BEING LED BY SANDINISTAS WHO CONTROL THE MOST FUNDAMENTAL FUNCTION OF GOVERNMENT SECURITY NICARAGUA WILL REMAIN IMMERSED IN A DEEP POLITICAL ECONOMIC AND SOCIAL CRISIS AS LONG AS THERE IS NO CLEAR SENSE OF LEADERSHIP OR RESPECT FOR A COMMON LAW BY WHICH ALL NICARAGUANS CAN BE JUDGED EQUALLY MR GUEVARA MENA IS A FORMER PRESIDENT OF THE NICARAGUAN BAR ASSOCIATION 9312100087 931210 BUSINESS BRIEF NORFOLK SOUTHERN CO SPENDING TO BE CUT IN 1994 RELECTING REDUCED NEEDS NORFOLK SOUTHERN CO SAID IT PLANS TO CUT 1994 CAPITAL SPENDING FROM THE 1993 LEVEL IN PART DUE TO REDUCED CAPITAL NEEDS BECAUSE IT CLOSED PART OF ITS NORTH AMERICAN VAN UNIT THE RAILROAD AND TRANSPORTATION COMPANY SAID IT EXPECTS 1994 CAPITAL SPENDING TO BE ABOUT 634 MILLION COMPARED WITH THE 1993 BUDGET OF 747 MILLION THE 1994 FIGURE INCLUDES 214 MILLION FOR RAIL CROSSTIE AND TRACK MAINTENANCE PROGRAMS THE NORFOLK VA COMPANY ALSO PLANS TO SPEND 828 MILLION FOR LOCOMOTIVES AND 342 MILLION FOR FREIGHT CARS NORFOLK SOUTHERN CHAIRMAN DAVID R GOODE SAID THE LOWER SPENDING LEVEL ALSO REFLECTS AN EFFORT TO ACHIEVE THE MOST EFFICIENT USE OF ASSETS SOME ANALYSTS HAVE SUGGESTED THAT THE COMPANY IS OVERSPENDING IN SOME AREAS 9312100086 931210 BUSINESS BRIEF FIRST INTERSTATE BANCORP CONCERN ACQUIRES BANCWEST OF TEXAS FOR 358 MILLION FIRST INTERSTATE BANCORP LOS ANGELES SAID IT ACQUIRED BANCWEST BANCORP INC AUSTIN TEXAS FOR 358 MILLION THE PURCHASE BOLSTERS FIRST INTERSTATE'S PRESENCE IN TEXAS WHERE THE COMPANY'S COSTLY ACQUISITIONS IN THE LATE 1980S ALMOST PROVED FATAL THROUGH COST CONTROLS AND OTHER MEASURES FIRST INTERSTATE RECOVERED IN RECENT YEARS AND EXPANDED STEADILY THROUGH ACQUISITIONS IN THE WESTERN US FIRST INTERSTATE SAID BANCWEST'S MAIN UNIT HAS ASSETS OF 2486 MILLION AND DEPOSITS OF 2237 MILLION IT SAID THE UNIT'S NET INCOME IN THE FIRST NINE MONTHS WAS 55 MILLION IN LATE NEW YORK STOCK EXCHANGE TRADING FIRST INTERSTATE SHARES WERE AT 6150 DOWN 75 CENTS 9312100084 931210 MARKETING & MEDIA MULTIMEDIA CHIEF GRIMES RESIGNS FROM TWO OFFICES BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL GREENVILLE SC MULTIMEDIA INC SAID J WILLIAM GRIMES RESIGNED AS CHIEF EXECUTIVE AND PRESIDENT THE COMPANY SAID MR GRIMES RESIGNED TO PURSUE OTHER INTERESTS IN THE MEDIA FIELD BUT ITS CHAIRMAN WALTER E BARTLETT ALSO ACKNOWLEDGED THAT DIFFERENCES EXISTED WITH GRIMES WHO JOINED THE COMPANY IN 1991 AND WAS ELEVATED TO THE CHIEF EXECUTIVE POST IN APRIL A COMPANY SPOKESWOMAN AND SEVERAL BOARD MEMBERS DECLINED TO ELABORATE BUT PEOPLE FAMILIAR WITH THE SITUATION SAID THE CONFLICT STEMMED FROM MR GRIMES'S EFFORTS TO PARTNER WITH OTHER MEDIA CONCERNS MR GRIMES 52 YEARS OLD WHO IS CREDITED WITH THE EARLY SUCCESS OF ESPN MOVED FROM HIS HOME IN CONNECTICUT TO ACCEPT THE GREENVILLE JOB WITH THE PROMISE THAT HE WOULD BE MADE CHIEF EXECUTIVE AND HAVE A FREE HAND TO MANAGE THE COMPANY MULTIMEDIA HAS LONG BEEN VIEWED ON WALL STREET AS A COMPANY WITH GOOD ASSETS BUT VERY LITTLE IN THE WAY OF A STRATEGIC PLAN AND MR GRIMES WAS SAID TO HAVE AMBITIOUS PLANS TO MAKE IT A BIGGER PLAYER IN THE MEDIA BUSINESS WITH THE RAPID ALLIANCES AND MERGERS IN THE ENTERTAINMENT AND TELECOMMUNICATIONS INDUSTRIES MR GRIMES WAS EXPLORING SUCH DEALS FOR MULTIMEDIA INDUSTRY EXECUTIVES FAMILIAR WITH THE SITUATION SAID BUT MR BARTLETT FAVORED A MORE CAUTIOUS APPROACH THEY ADDED AND MUSTERED HIS LONGTERM SUPPORT AMONG MULTIMEDIA'S DIRECTORS TO OVERRULE MR GRIMES'S PLANS MR GRIMES DECLINED TO COMMENT YESTERDAY MR GRIMES WILL BE SUCCEEDED BY MR BARTLETT 65 WHO HELD THE POSITION BEFORE MR GRIMES THIS IS THE SECOND TIME MR BARTLETT HAS REASSUMED TOP POSTS AT THE COMPANY AFTER AN APPARENT SUCCESSOR HAD DEPARTED IN 1990 JAMES T LYNAGH RESIGNED AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR AT THAT TIME MR BARTLETT REASSUMED THE POSITION OF PRESIDENT WHICH HE HAD RELINQUISHED A YEAR EARLIER DONALD D SBARRA 62 SENIOR VICE PRESIDENT OF MULTIMEDIA WILL ASSUME RESPONSIBILITIES FOR THE OPERATING DIVISIONS OF THE COMPANY A SPOKESWOMAN SAID IT HASN'T BEEN DECIDED IF MR SBARRA WILL BE GIVEN THE TITLE OF CHIEF OPERATING OFFICER A POSITION THAT HAS BEEN VACANT SINCE APRIL BEFORE JOINING MULTIMEDIA MR GRIMES HAD SERVED AS PRESIDENT AND CEO OF SPORTS CABLE CHANNEL ESPN A UNIT OF CAPITAL CITIES/ABC INC AND LATER HELD THE SAME TITLES FOR UNIVISION HOLDINGS INC THE SPANISHSPEAKING COMMUNICATIONS COMPANY MULTIMEDIA PRODUCES TELEVISION PROGRAMMING INCLUDING THE SYNDICATED DONAHUE AND SALLY JESSY RAPHAEL SHOWS THE COMPANY ALSO PUBLISHES 11 DAILY AND 49 NONDAILY NEWSPAPERS HAS INTERESTS IN RADIO AND TV STATIONS AND OPERATES MORE THAN 125 CABLE TV SYSTEMS IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY SHARES OF MULTIMEDIA CLOSED AT 38 DOWN 25 CENTS 9312100083 931210 LEISURE & ARTS CRITIQUE BLASPHEMOUS' WORDSMITHS BY PAUL LEVY LONDON PEOPLE WHO HAVE CDROM EQUIPMENT ARE NOW ABLE TO CALL UP ON THEIR SCREENS THE LATEST 1989 EDITION OF THE GREATEST DICTIONARY IN ANY LANGUAGE THE 20VOLUME OXFORD ENGLISH DICTIONARY EVEN THOSE LOGODAEDALISTS RARE EARLY 18TH CENTURY PERSONS SKILLED IN THE USE OF WORDS SUCH AS MYSELF WHO DO NOT HAVE CDROM CAN USE THE TWOVOLUME MICROPUBLISHED MID20TH CENTURY OED WITH ITS POWERFUL MAGNIFYING GLASS THAT REVEALS A ZILLION ORIG US M20 A VERY LARGE BUT INDEFINITE NUMBER DEFINITIONS WHERE THE NAKED EYE SEES ONLY A BLACK COLUMNAR M19 FROM LATE LATIN COLUMNARIS SMUDGE IN ANY CASE NEITHER IS VERY HANDY FOR DOING THE CROSSWORD PUZZLE SENSIBLE DICTIONARY ADDICTS HAVE LONG RELIED ON THE TWOVOLUME SHORTER OXFORD FIRST PUBLISHED 60 YEARS AGO IT HAS BEEN TINKERED WITH MANY TIMES MY 1964 EDITION RECORDS FIVE EARLIER REVISIONS BUT NEVER TOTALLY REVAMPED UNTIL NOW THE NEW SHORTER 9995 AS ITS USERS ARE CERTAIN TO CALL IT CONTAINS 500000 DEFINITIONS HAS 97600 HEADWORDS 83000 ILLUSTRATIVE QUOTATIONS AND 75 MILLION WORDS THE NEW SHORTER OXFORD MADE HEADLINES AFTER IT WAS PUBLISHED HERE IN SEPTEMBER NOT BECAUSE OF THESE IMPRESSIVE STATISTICS BUT I'M INCLINED TO THINK BECAUSE SOMEONE ON EDITOR LESLEY BROWN'S TEAM OF 16 LEXICOGRAPHERS HAS A MISCHIEVOUS SENSE OF HUMOR THE DICTIONARY WAS DENOUNCED AS BLASPHEMOUS IN THE LETTERS COLUMN OF THE TIMES OF LONDON BY SOME EVANGELICAL CHRISTIANS WHO OBJECTED TO THE DEFINITIONS GIVEN UNDER THE HEADWORD JESUS THIS IN TURN GAVE THE TIMES EDITORS AN EXCUSE TO PONTIFICATE ON ONE OF THEIR FAVORITE SUBJECTS LANGUAGE BELONGS NOT TO OBJECTIVE LINGUISTS BUT TO ALL ITS USERS THE SUN SHINES EQUALLY ON THE ARTICULATE AND THE TACITURN THE FOULMOUTHED AND THE POLITE THE PIOUS AND THE PROFANE THE ALLEGED BLASPHEMY CONSISTS OF DEFINING THE NAME JESUS AS THE TIMES PUT IT ACCURATELY AND MORE ECONOMICALLY THAN BEFORE VIZ THE CENTRAL FIGURE OF THE CHRISTIAN FAITH A JEWISH PREACHER C5 BCCAD 30 REGARDED BY HIS FOLLOWERS AS THE SON OF GOD AND GOD INCARNATE THE TRUE SOURCE OF THE FUSS THOUGH IS THE INCLUSION OF SECONDARY MEANINGS THE NEW SHORTER OXFORD CITES THE USE OF JESUS AS AN INTERJECTION EXPRESSING SURPRISE DISMAY AND RELIEF LIKEWISE JESUS WEPT CREEPING JESUS AS AN EPITHET AND JESUS FREAK AS A PERSON COMBINING A LIFESTYLE LIKE THAT OF A HIPPY WITH FERVENT EVANGELICAL CHRISTIANITY ON THE OPPOSITE PAGE THE COMPILERS OF THE NEW SHORTER OXFORD GIVE A SEPARATE ENTRY FOR JEW AS A TRANSITIVE VERB USU CONSIDERED OFFENSIVE GIVEN AS AN EARLY 19THCENTURY USE IT MEANS DRIVE A HARD BARGAIN WITH GET A FINANCIAL ADVANTAGE OVER CHEAT BEAT DOWN IN PRICE THE ILLUSTRATION IS FROM WG HAMMOND WE WERE UNMERCIFULLY JEWED FOR ALL THE REFRESHMENTS THIS IS THE WORD OVER WHICH OXFORD UNIVERSITY PRESS WON HISTORIC LITIGATION IN 1973 WHEN IT WAS SUED BY SOME JEWISH BUSINESSMEN WHO ALLEGED THAT THE ENTRY WAS DAMAGING TO THEM COSTS WERE AWARDED AGAINST THE PLAINTIFFS YID IS IN TOO THOUGH FLAGGED AS DEROGATORY FOR ALL BUT YIDDISH SPEAKERS CURIOUSLY IMMEDIATELY ABOVE IT IS A NEW ENTRY YICHUS A YIDDISH WORD DESCRIBED AS CHIEFLY US COLLOQ E20 SOCIAL STATUS PRESTIGE ANOTHER CURIOSITY IS THE READING TASTES OF THE COMPILERS OF THE DICTIONARY AS IMPLIED BY THE LIST OF SOURCES CITED AT THE BACK OF THE SECOND VOLUME AS WELL AS BY CITATIONS SUCH AS THOSE FOR THE THIRD MEANING OF JET STEPHEN SPENDER ON A JET OF WATER FROM A HOSE ANTHONY WEST ON A JET OF SMOKE FROM HIS FATHER'S CIGAR THE IN JOKE IS THAT HIS MOTHER WAS DAME REBECCA WEST AND HIS FATHER HG WELLS AND SHRIEKING JETPLANE ENGINES IN JOAN WYNDHAM'S AMUSING RECENT AND NAUGHTY MEMOIRS ON THE OTHER HAND THE COMPILERS WOULD HAVE AVOIDED THE SINGLE INACCURACY I HAVE FOUND IF THEY HAD READ JUST A LITTLE MORE WIDELY IN MOST DICTIONARIES I AM CITED AS ONE OF THE COINERS OF THE UGLY BUT USEFUL WORD FOODIE MORE OFTEN THE CREDIT GOES TO MY COLLABORATOR ON THE OFFICIAL FOODIE HANDBOOK 1984 ANN BARR AS HER NAME COMES BEFORE MINE IN THE ALPHABET WE BOTH INCIDENTALLY FEEL THAT GAEL GREENE PROBABLY COINED THE WORD SIMULTANEOUSLY WITH US IN 1981 WHEN WE FIRST USED IT IN SPEECH AND 1982 WHEN WE FIRST USED IT IN PRINT THE NEW SHORTER OXFORD DEFINES FOODIE AS A PERSON WITH A PARTICULAR INTEREST IN FOOD WHICH IS A LITTLE UNDERSTATED BUT NOT WRONG PERVERSELY THE EDITORS GIVE ITS FURTHER MEANING AS GOURMET PART OF THE POINT OF THE COINAGE HOWEVER WAS TO DISTINGUISH THE NEW FOODIE FROM THE OLDFASHIONED GOURMET TO QUOTE MS BARR AND MYSELF EVERYONE KNOWS SOME OLDER PERSON WHO WAS CALLED A GOURMET' BEFORE THE TERM FOODIE' ARRIVED BUT 'FOODIES' ARE NEW CHILDREN OF THE CONSUMER BOOM THE GOURMET WAS TYPICALLY A RICH MALE AMATEUR TO WHOM FOOD WAS A PASSION FOODIES ARE TYPICALLY AN ASPIRING PROFESSIONAL COUPLE TO WHOM FOOD IS A FASHION TRUE OUR PURPOSE IN COINING THE WORD WAS SATIRIC AND TRUE THE COLLINS ENGLISH DICTIONARY DEFINES FOODIE AS A PERSON HAVING AN ENTHUSIASTIC INTEREST IN THE PREPARATION AND CONSUMPTION OF GOOD FOOD WHICH IS SO ANODYNE AS TO BE PERILOUSLY CLOSE TO GOURMET BUT SURELY NOBODY HAS EVER USED THE WORD FOODIE WITHOUT INTENDING THE USAGE TO HAVE AN EDGE WHETHER OR NOT ACTUALLY PEJORATIVE I AM CONVINCED THAT THE ORDINARY USAGE OF WHAT MFK FISHER JULIA CHILD JANE GRIGSON AND ELIZABETH DAVID ALL AGREED WAS A HORRID BUT PROBABLY NECESSARY WORD STILL RETAINS ITS EDGE 9312100082 931210 HEARD ON THE STREET DESPITE ITS STODGY IMAGE DUFF & PHELPS GETS HIGH MARKS FROM ANALYSTS AS ITS STOCK SOARS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK YOU MIGHT THINK IT WOULD BE HARD FOR A STOCK TO SNEAK UP 80 WITHOUT ATTRACTING A LOT OF ATTENTION BUT THAT'S WHAT DUFF & PHELPS HAS DONE THE CHICAGO MONEYMANAGEMENT AND CREDITRATING FIRM HAS RISEN TO 21 5/8 FROM 12 SINCE GOING PUBLIC IN MARCH 1992 YET ONLY A HANDFUL OF WALL STREET ANALYSTS FOLLOW THE STOCK AND FEW BIG INVESTORS OWN IT AMONG PEOPLE WHO ARE PAYING ATTENTION MANY BELIEVE THE STOCK REMAINS A BARGAIN EVEN AFTER ITS SUBSTANTIAL RUNUP DUFF & PHELPS MAY SEEM LIKE A STODGY CREDITRATING AGENCY BUT THAT IMAGE IS OUT OF DATE THE COMPANY GETS ABOUT HALF ITS REVENUE AND MOST OF ITS PROFIT FROM ITS MONEY MANAGEMENT BUSINESS WITH ASSETS OF 19 BILLION ARIEL CAPITAL MANAGEMENT IN CHICAGO OWNS MORE THAN TWO MILLION SHARES AND HAS CONTINUED TO ADD TO ITS HOLDINGS THIS YEAR I REALLY LIKE THE PREDICTABILITY OF EARNINGS SAYS CHIEF INVESTMENT OFFICER JOHN ROGERS THERE'S A STABILITY AND CONSERVATISM ABOUT THE COMPANY DESPITE THIS HANDSOME GROWTH RATE DUFF'S STOCK SELLS FOR A SMALLER MULTIPLE OF PERSHARE EARNINGS THAN MANY OTHER PUBLICLY TRADED MONEYMANAGEMENT FIRMS ARIEL ANALYST FRANKLIN MORTON FIGURES THAT DUFF SHARES ARE GOING FOR LESS THAN 14 TIMES ESTIMATED 1994 EARNINGS DREYFUS WHICH MELLON BANK RECENTLY ANNOUNCED PLANS TO ACQUIRE SELLS FOR A TAD OVER 15 TIMES ESTIMATED 1994 EARNINGS THE MULTIPLE IS ABOUT 16 FOR T ROWE PRICE AND ABOUT 17 FOR FRANKLIN RESOURCES MR MORTON SAYS MOREOVER ANALYSTS AND MONEY MANAGERS SAY THAT DUFF'S EARNINGS UNLIKE THOSE OF ITS COMPETITORS ARE UNDERSTATED REPORTED EARNINGS AT DUFF ARE PENALIZED BY HEAVY AMORTIZATION CHARGES STEMMING FROM A 1989 LEVERAGED BUYOUT LED BY FREEMAN SPOGLI A PRIVATE INVESTMENT BANKING FIRM THESE ARE NONCASH CHARGES SO MANY ANALYSTS ADD THEM BACK TO REPORTED EARNINGS TO DERIVE A CASHFLOW FIGURE THEY BELIEVE IS MORE MEANINGFUL THAN THE REPORTED EARNINGS NUMBER I DON'T THINK THE STREET UNDERSTANDS THE REAL EARNING POWER SAYS FREDERIC E RUSSELL A TULSA OKLA MONEY MANAGER HE FIGURES THAT DUFF'S REAL EARNINGS WILL BE ABOUT 155 A SHARE IN 1993 AND 180 IN 1994 SO HE CONSIDERS THE STOCK TO BE SELLING FOR LESS THAN 12 TIMES ITS LIKELY 1994 EARNINGS THE OKLAHOMA MANAGER ALSO WAS PLEASED WITH DUFF'S ACQUISITION LAST MONTH OF A 40 INTEREST IN BEUTEL GOODMAN A CANADIAN INVESTMENT ADVISER WITH MORE THAN 75 BILLION UNDER MANAGEMENT THE ACQUISITION PUSHES DUFF FURTHER INTO MONEY MANAGEMENT WHICH MOST INVESTORS VIEW AS ITS FASTESTGROWING AND MOST PROFITABLE BUSINESS DUFF'S CREDITRATING BUSINESS IS ALSO UNDERRATED ARGUES ARIEL'S MR MORTON TRUE TRADITIONAL BOND RATING ISN'T A GROWTH BUSINESS AND DUFF IS A RELATIVELY SMALL PLAYER RANKING A DISTANT THIRD BEHIND GIANTS STANDARD & POOR'S AND MOODY'S BUT DUFF HAS BEEN AGGRESSIVELY DEVELOPING SPECIALTY NICHES SUCH AS RATING BONDS OF FOREIGN COMPANIES THAT ARE RAISING CAPITAL IN THE US AND RATING THE CLAIMSPAYING ABILITY OF INSURANCE COMPANIES BUT NOT EVERYBODY IS BUYING THE BULLS' STORY JAMES KALIL JR OF COMPUVAL INVESTMENTS IN WILMINGTON DEL SAYS HE THINKS DUFF IS A GOOD COMPANY BUT IT'S HARD FOR HIM TO GET EXCITED ABOUT A STOCK THAT'S ALREADY RISEN 80 MERRILL LYNCH'S MICHAEL R HUGHES LIKES DUFF & PHELPS BUT HIS ENTHUSIASM IS MUTED HE GIVES IT A 2 RATING ON A 5POINT SCALE THE LOWER THE NUMBER THE MORE BULLISH THE RATING MR HUGHES SEES DUFF AS A 15 GROWER AND SEES NO SPECIAL REASON FOR THE PRICE/EARNINGS MULTIPLE TO EXPAND THEREFORE HE EXPECTS THE STOCK TO ADVANCE ABOUT 15 OVER THE COMING YEAR WHICH FALLS SHORT OF THE 20 EXPECTED GAIN NECESSARY FOR A MERRILL ANALYST TO RANK A STOCK AS A 1 ANY RISE IN LONGTERM INTEREST RATES WOULD BE A THREAT TO DUFF MR HUGHES NOTES RISING RATES HURT THE PRICES OF BOTH BONDS AND UTILITY STOCKS TWO OF DUFF'S SPECIALTIES ALSO IF RATES RISE COMPANIES WOULD ISSUE FEWER BONDS A BLOW TO THE CREDITRATING BUSINESS BUT JAMES P HANBURY OF WERTHEIM SCHRODER ISN'T WORRIED HE THINKS DUFF CAN INCREASE ITS EARNINGS BY REDUCING ITS DEBT LOAD RECENTLY SLICED TO ABOUT 24 OF CAPITAL FROM 32 BY CONTINUING TO BUY BACK ITS OWN SHARES AND BY DIVERSIFYING MORE INTO MANAGING STOCK PORTFOLIOS AS IT DID THROUGH ITS STAKE IN BEUTEL GOODMAN AS MR HANBURY SEES IT IT WOULD TAKE A MAJOR RISE IN INTEREST RATES TO DERAIL DUFF'S PROFIT TRAIN HEARD 9312100081 931210 TECHNOLOGY JOHNSON & JOHNSON MERCK JOINT VENTURE TO BUY FRENCH FIRM WHITEHOUSE STATION NJ A JOHNSON & JOHNSON AND MERCK & CO JOINT VENTURE SAID IT AGREED TO ACQUIRE LABORATOIRES JP MARTIN A LEADING FRENCH OVERTHECOUNTER DRUG COMPANY TERMS WEREN'T DISCLOSED THE PARISBASED COMPANY WHICH HAD 1992 SALES OF ABOUT 20 MILLION MAKES PRODUCTS IN THE GASTROINTESTINAL COUGH AND COLD AND ANALGESICS CATEGORIES THE ACQUISITION BY JOHNSON & JOHNSONMERCK CONSUMER PHARMACEUTICALS CO AS THE JOINT VENTURE IS KNOWN IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER OF 1994 AFTER REGULATORY REVIEW IN FRANCE JOHNSON & JOHNSON AND MERCK FORMED A 5050 PARTNERSHIP IN 1989 TO DEVELOP AND MARKET IN THE US A BROAD RANGE OF NONPRESCRIPTION PRODUCTS INCLUDING THOSE DERIVED FROM MERCK'S PRESCRIPTION MEDICINES THE LATEST ACQUISITION PUTS THE VENTURE IN ITS FOURTH EUROPEAN MARKET 9312100080 931210 ASSETS OF MONEY FUNDS JUMPED IN LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS JUMPED 1308 BILLION TO 60176 BILLION FROM A REVISED 58868 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 654 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 372 BILLION TO 40053 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 407 TAXABLE MONEY MARKET FUNDS ROSE BY 165 BILLION TO 31167 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS ROSE BY 207 BILLION TO 8886 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 936 BILLION TO 20123 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEY MARKET FUNDS ROSE BY 841 BILLION TO 17816 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE BY 9479 MILLION TO 2306 BILLION 9312100079 931210 WHO'S NEWS PAINEWEBBER GIVES FENSTERSTOCK NEW POST AT FUNDADVISORY UNIT NEW YORK PAINEWEBBER GROUP INC SAID JOYCE N FENSTERSTOCK WAS NAMED TO THE NEW POST OF PRESIDENT OF MITCHELL HUTCHINS ASSET MANAGEMENT THE INVESTMENT ADVISER TO PAINEWEBBER MUTUAL FUNDS MS FENSTERSTOCK 44 YEARS OLD WILL CONTINUE TO HOLD HER POSTS AS PRESIDENT OF PAINEWEBBER MUTUAL FUNDS AND A MANAGING DIRECTOR OF MITCHELL HUTCHINS A UNIT OF PAINEWEBBER INC SHE HAS HELD THOSE POSTS SINCE 1989 AND HER RESPONSIBILITIES INCLUDE THE MANAGEMENT MARKETING ADMINISTRATION AND DISTRIBUTION OF FUNDS WHOSE ASSETS NOW EXCEED 26 BILLION MITCHELL HUTCHINS HAS ABOUT 40 BILLION OF ASSETS UNDER MANAGEMENT MS FENSTERSTOCK JOINED PAINEWEBBER IN 1978 AS A VICE PRESIDENT IN CORPORATE FINANCE BECAME CHIEF ADMINISTRATIVE OFFICER OF CORPORATE FINANCE IN 1982 AND EXECUTIVE ASSISTANT TO THE CHAIRMAN OF PAINEWEBBER GROUP IN 1985 SHE BEGAN HER CAREER IN 1973 AS AN INVESTMENT BANKER WITH GOLDMAN SACHS & CO 9312100078 931210 TECHNOLOGY BRIEF LIFECELL CORP SKINTISSUE PRODUCT BEGINS COMMERCIAL SALES FOR GRAFTS LIFECELL CORP SAID IT WILL BEGIN COMMERCIAL SALES OF ITS PROCESSED SKINTISSUE PRODUCT ALLODERM THE COMPANY BASED IN THE WOODLANDS TEXAS SAID ALLODERM WILL BE USED INITIALLY AS GRAFTS FOR THIRDDEGREEBURN PATIENTS WHO DON'T HAVE SKIN AVAILABLE FOR GRAFTING LIFECELL SAID ALLODERM PROVIDES MOREEXTENSIVE SKIN COVERAGE WITH LESS TRAUMA THAN OTHER TREATMENTS AND IN SOME CASES HAS BEEN SUPERIOR TO GRAFTS OF THE PATIENT'S OWN SKIN LIFECELL A COMMERCIAL DEVELOPER OF TISSUE GRAFTS FOR TRANSPLANTATION AND OF PRESERVABLE TRANSFUSABLE BLOOD PRODUCTS SAID 1994 CLINICAL STUDIES WILL EVALUATE THE USE OF ALLODERM IN TREATMENT OF CHRONIC SKIN ULCERS AND IN RECONSTRUCTIVE PLASTIC SURGERY 9312100077 931210 CHINA A SPECIAL REPORT READING THE MARKET BUILDERS' BONANZA FROM SUBWAYS AND AIRPORTS TO BRIDGES AND POWER STATIONS CHINA'S INFRASTRUCTURE PLANS ARE VAST BY VALERIE REITMAN DISCUSSIONS ABOUT INFRASTRUCTURE ARE USUALLY BORING UNTIL YOU COME TO CHINA A VAST COUNTRY WITH A HUGE POPULATION EXPLODING MARKETS AND GROANING UNDERDEVELOPED PUBLIC AMENITIES CHINA IS READY TO BUILD BUILD BUILD ITS INFRASTRUCTURE SHOPPING LIST FOR THE NEXT DECADE IS EYEPOPPING 40 AIRPORTS 14 METROPOLITAN SUBWAY AND LIGHTRAIL SYSTEMS SCORES OF PORTS POWER PLANTS ROADS AND BRIDGES JUST BUILDING AND EQUIPPING THE POWER PLANTS COULD COST MORE THAN 100 BILLION CONTEMPLATING CHINA'S CONSTRUCTION NEEDS IS A BIT LIKE CONTEMPLATING THE COSMOS IF ONLY HALF OF THE PLANNED PROJECTS ARE BUILT OVER THE NEXT 10 YEARS THEY STILL WILL AMOUNT TO A SORT OF BIG BANG FOR INFRASTRUCTURE PROVIDERS IT'S THE GREATEST MARKET IN THE WHOLE FUTURE OF THE WORLD SAYS ROBERT DONOVAN PRESIDENT OF ASEA BROWN BOVERI PLANT SYSTEMS THE STAMFORD CONN UNIT OF THE SWISSBASED HEAVYENGINEERING GROUP ABB ASEA BROWN BOVERI LTD IT'S ALSO A MARKET WESTERN BUSINESS OFFICIALS HASTEN TO ADD FRAUGHT WITH PERIL STILL IT WAS NO SURPRISE THAT WHEN SHI DAZHEN CHINA'S ENERGY MINISTER RECENTLY PASSED THROUGH WASHINGTON DC SOME 200 REPRESENTATIVES OF US COMPANIES FLOCKED TO AN IMPROMPTU APPEARANCE HE MADE AND HUNG ON HIS EVERY WORD IN A SPEECH TO THE USCHINA BUSINESS COUNCIL MR SHI TALKED ABOUT A PROJECT THAT WHILE HUGE IN ITSELF IS ONLY A RELATIVELY SMALL PIECE OF THE PIE CHINA'S PLANS TO VASTLY EXPAND ITS POWERGENERATION CAPABILITY SALES OF EQUIPMENT AND TECHNICAL EXPERTISE ALONE FOR THE ENERGY PROGRAM COULD PROVE TO BE A GOLD MINE FOR FOREIGN ENGINEERS AND MANUFACTURERS THE THREE GORGES HYDROELECTRIC PROJECT FOR EXAMPLE INVOLVING THE CONSTRUCTION OF A 590FOOTHIGH DAM ON THE YANGTZE RIVER AND THE RELOCATION OF ONE MILLION PEOPLE IS EXPECTED TO COST SOME 30 BILLION AMERICAN BRITISH AND GERMAN CONSORTIA HAVE ALREADY BID ON AN 800 MILLION CONTRACT TO BUILD A 13MILE SUBWAY SYSTEM IN GUANGZHOU TO ALLEVIATE THE HORRENDOUS TRAFFIC PROBLEMS IN THE PROSPEROUS SOUTHERN CITY THE AMERICANLED CONSORTIUM KNOWN AS THE USCHINA TRANSIT GROUP SUBMITTED A 350 MILLION BID TO SUPPLY MANAGEMENT EXPERTISE AND EQUIPMENT FOR RAILWAY SIGNALING AUTOMATED FARE COLLECTION WAYSIDE POWER AND TELECOMMUNICATIONS LAST MONTH THOUGH MOST OF THE CONTRACT WAS AWARDED TO US TRANSIT'S MOST FEARED COMPETITOR THE GERMAN ALLIANCE OF SIEMENS AG AND THE AEG UNIT OF DAIMLERBENZ AG THE SAME PARTNERS THAT WERE AWARDED THE SHANGHAI SUBWAY PROJECT FIVE YEARS AGO INDEED GERMANY IS AGGRESSIVELY PURSUING THE CHINESE MARKET TO HELP REJUVENATE ITS OWN ECONOMY ONE SUCCESSFUL TECHNIQUE HAS BEEN BONN'S USE OF SOFT LOANS THOSE MADE AT BELOWMARKET RATES AS A WAY OF GIVING GERMAN EXPORT COMPANIES A HAND WITH THE NECESSARY FINANCING FOR BIG PROJECTS THE SIEMENSDAIMLER PAIRING FOR EXAMPLE HAS BEEN AIDED IN ITS GUANGZHOU BID BY A 200 MILLION SOFT LOAN SHORTLY AFTER THE CONTRACT AWARD WAS ANNOUNCED WASHINGTON APPROVED AN 11THHOUR 350 MILLION SOFT LOAN FOR THE PROJECT GIVING THE AMERICAN CONSORTIUM AMMUNITION FOR A LASTDITCH ATTEMPT TO REOPEN THE BIDDING FOR MANY OF THE US COMPANIES THAT HAVE BEEN OPERATING IN CHINA SINCE IT OPENED ITS DOORS IN THE LATE 1970S SUCH AS FLUOR CORP FOSTER WHEELER CORP'S ENERGY UNIT AND BABCOCK & WILCOX CO CHINA PROJECTS HAVE BECOME A CRUCIAL COMPONENT OF REVENUE AND PROFIT HOWEVER US COMPANIES TEND TO BE AT A DISADVANTAGE TO BUSINESSES IN COUNTRIES WHERE SOFT LOANS ARE EASIER TO COME BY THE RECENT 350 MILLION SOFT LOAN FOR EXAMPLE WAS THE US GOVERNMENT'S FIRST SINCE 1990 WHEN IT APPROPRIATED A 23 MILLION CONCESSIONARY LOAN FOR A SHANGHAI SUBWAY SIGNALING PROJECT IN CONTRAST OTHER WESTERN MEMBERS OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SUPPLIED A TOTAL OF 26 BILLION IN CONCESSIONARY FUNDING TO CHINA IN 1992 WHAT'S MORE THE ODDS FAVOR THE LOCALS THE MAJORITY OF CONTRACTS GO TO CHINESE COMPANIES WITH JUST 20 TO 30 OPEN TO FOREIGN BIDDERS US EUROPEAN JAPANESE AND HONG KONG COMPANIES WIN ROUGHLY AN EQUAL AMOUNT OF BUSINESS MOST OF THE WESTERN CONTRACTS ARE FOR DELIVERY OF EQUIPMENT AND EXPERTISE TO INCREASE THEIR CHANCES MANY WESTERN SUPPLIERS SET UP JOINT VENTURES OR LICENSING AGREEMENTS WITH CHINESE COMPANIES FOR INSTANCE FOSTER WHEELER RECENTLY WON A 160 MILLION CONTRACT TO PROVIDE TWO 600MEGAWATT STEAM GENERATORS FOR A COALFIRED POWER PLANT IN ZOUXIAN SPONSORED BY THE WORLD BANK THE CONTRACT FOR THE PLANT'S TURBINES WENT TO A DOMESTIC COMPANY DONGFANG ELECTRIC CORP WHICH IS A LICENSEE OF JAPAN'S HITACHI LTD IF YOU WANT TO BE THERE LONGTERM YOU HAVE TO MANUFACTURE IN THE COUNTRY SAYS MR DONOVAN OF ABB WHICH HAS LICENSING AGREEMENTS WITH A NUMBER OF CHINESE COMPANIES BUT IS SEEKING A JOINTVENTURE MANUFACTURING PARTNER SOME WESTERN COMPANIES ARE ALSO BEGINNING TO TAKE EQUITY STAKES IN INFRASTRUCTURE PROJECTS TO RAISE CAPITAL CHINA HAS INVITED DIRECT FOREIGN OWNERSHIP OF POWER PLANTS AIRPORTS RAILROADS AND HIGHWAYS A FOREIGN CORPORATION CAN NOW BUILD OWN AND OPERATE A POWER PLANT OR TOLL ROAD AND REAP A RETURN FROM THE REVENUE IT COLLECTS THE POTENTIAL IF CHINA GETS ITS LEGAL AND CURRENCY REGIME INTO SHAPE IS TREMENDOUS SAYS A WESTERN DIPLOMAT IN BEIJING FOR THE TIME BEING THOUGH UNCERTAINTIES ABOUND AND FEW DEALS OF THIS KIND HAVE ACTUALLY BEEN WORKED OUT THE VIABILITY OF SUCH PROJECTS DEPENDS ON FOREIGN INVESTORS' BEING ALLOWED TO CHARGE THEIR CHINESE CUSTOMERS PROFITABLE RATES A POTENTIAL POLITICAL THICKET MOREOVER CHINA'S YUAN IS STILL NOT CONVERTIBLE IN WORLD MARKETS MAKING IT DIFFICULT TO REPATRIATE PROFITS ONE OF THE FEW CURRENTLY FOREIGNOWNED UTILITIES IS A POWER PLANT IN GUANGDONG PROVINCE DEVELOPED BY HOPEWELL HOLDINGS LTD OF HONG KONG THE PROJECT WHICH BEGAN OPERATING IN 1987 IS UNIQUE IN THAT MUCH OF THE POWER IT SELLS GOES TO FOREIGN MANUFACTURING JOINT VENTURES WHICH PAY THEIR BILLS IN HARD CURRENCY HOPEWELL IS NOW BUILDING A SECOND PLANT SHAJIAO C FOR WHICH ABB IS PROVIDING THREE BOILERS AT A COST OF 400 MILLION OTHER DEALS ARE BEING NEGOTIATED TWO US UTILITIES SOUTHERN CO'S SOUTHERN ELECTRIC INTERNATIONAL SUBSIDIARY AND MISSION ENERGY A SUBSIDIARY OF SOUTHERN CALIFORNIA EDISON CO ARE HOLDING DISCUSSIONS WITH A MAINLAND CHINESE CONSORTIUM TO BUILD A 1200MEGAWATT COALFIRED POWER PLANT NEAR NANJING THE TWO AMERICAN UTILITIES WOULD OWN A 49 STAKE WING GROUP BASED IN ASPEN COLO IS HAMMERING OUT DETAILS WITH THE HENAN PROVINCIAL GOVERNMENT TO BUILD A 700MEGAWATT COALFIRED POWER PLANT IN CENTRAL CHINA THE UTILITY IS SEEKING TO SELL ELECTRICITY TO INDUSTRIAL AND RESIDENTIAL USERS FOR LOCAL CURRENCY BUT IT IS NEGOTIATING WITH A GROUP OF BANKS TO CONVERT THE REVENUE INTO DOLLARS ALTHOUGH CHINA HAS BEEN DECENTRALIZING ITS ECONOMY REMNANTS OF THE OLD CENTRALPLANNING SYSTEM ARE STILL IN PLACE WESTERN OFFICIALS URGE PROSPECTIVE SUPPLIERS AND INVESTORS TO KEEP IN MIND THE FACT THAT DECISIONS ABOUT WHO WILL BE AWARDED A CONTRACT ARE MADE JOINTLY BY OFFICIALS FROM THE CENTRAL PROVINCIAL AND MUNICIPAL GOVERNMENTS PROVINCES AND MUNICIPALITIES ARE EXPECTED TO FIND THEIR OWN SOURCES OF FINANCING WHICH IS WHY THEY HAVE WELCOMED FOREIGN INVESTMENT WESTERN OFFICIALS ALSO ADVISE BUSINESSES TO SPEND PLENTY OF TIME IN CHINA MEETING AND NEGOTIATING WITH OFFICIALS I'VE RECEIVED EXPRESSMAIL BIDS FROM SUPPLIERS WHO COME IN TWO WEEKS AHEAD OF TIME TO NEGOTIATE FOR A 2 BILLION PROJECT SAYS A WESTERN DIPLOMAT THAT LASTMINUTE APPROACH HE STRESSES DOESN'T WORK IN CHINA YOU NEED A COMMITMENT FOR THE LONG TERM ADDS HAROLD GLENN GROUP PRESIDENT OF FLUOR DANIEL INC A FLUOR UNIT THAT HAS BUILT 70 INDUSTRIAL PLANTS AND MINING PROJECTS IN CHINA YOU NEED TO BE PATIENT AND TO ESTABLISH LEVELS OF COMMUNICATIONS AND TRUST MS REITMAN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S PITTSBURGH BUREAU 9312100076 931210 BUSINESS BRIEF ATARI CORP NET LOSS TOTALS 176 MILLION AS SALES PLUMMET BY 87 ATARI CORP SUNNYVALE CALIF REPORTED A NET LOSS FOR THE THIRD QUARTER OF 176 MILLION AS SALES PLUNGED 87 THE RESULTS WEREN'T SUPRISING ATARI A VIDEOGAME PIONEER HAS BEEN REELING FOR MANY QUARTERS BECAUSE OF FEROCIOUS COMPETITION FROM THE LIKES OF SEGA OF AMERICA INC AND NINTENDO OF AMERICA INC ATARI'S SALES HAVE CRATERED WHILE IT HAS BEEN PHASING OUT OLD PRODUCTS IT HAS STAKED ITS FUTURE ON A MULTIMEDIA SYSTEM CALLED JAGUAR WHICH IT BEGAN SHIPPING NOV 15 THE LOSS EQUALED 31 CENTS A SHARE SALES DROPPED TO 44 MILLION FROM 345 MILLION A YEAR AGO THE COMPANY HAD NET INCOME OF 19 MILLION OR THREE CENTS A SHARE IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY ATARI WAS UNCHANGED AT 725 9312100075 931210 CLINTON INCREASES PRESSURE ON CONGRESS TO MOVE QUICKLY ON ANTICRIME MEASURES BY JEFFREY H BIRNBAUM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION RIDING ON ANTICRIME SENTIMENT STIRRED PARTLY BY A GUNMAN'S HORRIFYING ATTACK ON A NEW YORK COMMUTER TRAIN STEPPED UP PRESSURE ON CONGRESS TO ACT QUICKLY ON MEASURES TO STEM STREET VIOLENCE AT LEAST ONE IDEA BEING FLOATED BY THE ADMINISTRATION IS SURE TO AROUSE FIERCE OPPOSITION FROM THE POTENT GUN LOBBY ATTORNEY GENERAL JANET RENO'S SUGGESTION THAT HANDGUN OWNERS SHOULD BE LICENSED A STONYFACED PRESIDENT CLINTON TOLD A GROUP OF MAYORS AND POLICE CHIEFS YESTERDAY THAT VIOLENCE WAS TEARING THE HEART OUT OF OUR COUNTRY BUT HE ADDED THIS NATION IS REALLY PREPARED IN A WAY THAT IT HAS NOT BEEN BEFORE AT LEAST IN MY EXPERIENCE TO DO SOMETHING ABOUT VIOLENT CRIME AS A FIRST STEP HE URGED CONGRESS TO APPROVE ANTICRIME LEGISLATION THE HOUSE AND SENATE HAVE PASSED DIFFERENT VERSIONS OF THE BILL WHICH MUST BE RECONCILED BEFORE IT CAN BECOME LAW MR CLINTON EMPHASIZED THE NEED FOR 100000 MORE COPS TO BE PUT ON CITY STREETS A PROVISION CONTAINED IN THE SENATE VERSION AND HE ADDED WE HAVE TO MOVE AND I THINK WE ARE PREPARED TO MOVE SEPARATELY ATTORNEY GENERAL RENO SAID THAT SHE FAVORS THE LICENSING OF HANDGUN OWNERS AND THAT THE JUSTICE DEPARTMENT IS STUDYING HOW THAT MIGHT BE DONE IT OUGHT TO BE AT LEAST AS HARD TO GET A GUN AS IT IS TO GET A DRIVER'S LICENSE SHE DECLARED THERE SHOULD BE PROCEDURES FOR REVOCATION OF THAT LICENSE IF A PERSON DEMONSTRATES AN INABILITY TO SAFELY AND LAWFULLY USE THE WEAPON AND THERE SHOULD BE VIGOROUS PROSECUTION AND A PENALTY THAT IS COMMENSURATE WITH THE CRIME FOR THOSE PEOPLE WHO POSSESS A WEAPON WITHOUT A LICENSE ON WEDNESDAY PRESIDENT CLINTON TOLD THE DEPARTMENT TO EXPLORE WHAT SHOULD BE DONE REGARDING LICENSING HANDGUN OWNERS YESTERDAY MS RENO SAID THAT REGISTERING GUNS WOULD SERVE NO PURPOSE BECAUSE IT WOULDN'T ENSURE GUN OWNERS WERE COMPETENT TO USE THE WEAPONS MS RENO SAID SHE HADN'T YET TAKEN A STAND ON REP CHARLES SCHEMER'S PROPOSAL TO REQUIRE HANDGUN OWNERS TO HAVE A BUYER'S CARD THAT WOULD BE ISSUED AFTER A BACKGROUND CHECK THE NEW YORK DEMOCRAT'S PROPOSAL HOWEVER DOESN'T REQUIRE THAT AN OWNER DEMONSTRATE THE SAFE AND LAWFUL USE OF THE WEAPON AS DOES MS RENO'S PROPOSAL THE PRESIDENT AND HIS TOP ADVISERS HAVE BEEN TALKING UP ANTICRIME MEASURES SINCE TUESDAY WHEN A PISTOLTOTING MAN KILLED FIVE PEOPLE AND WOUNDED 18 OTHERS ON A COMMUTER TRAIN IN LONG ISLAND NY HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAID YESTERDAY THAT THE INCIDENT ENDED THE MYTH THAT VIOLENCE ONLY AFFECTS OUR INNER CITIES SHE ADDED VIOLENCE AFFECTS ALL OF US MS SHALALA ALSO TIED ANTICRIME EFFORTS TO MR CLINTON'S TOP PRIORITY OVERHAULING THE HEALTHCARE SYSTEM VIOLENCE SHE SAID IS A PUBLIC HEALTH CRISIS THAT REQUIRES PUBLIC HEALTH SOLUTIONS 9312100074 931210 BUSINESS BRIEF ZAPATA CORP EARLY DEBT PAYMENT CAUSES 68 MILLION PRETAX CHARGE ZAPATA CORP HOUSTON SAID IT EXPECTS TO REPORT A 68 MILLION PRETAX CHARGE IN ITS FIRST QUARTER ENDING DEC 31 BECAUSE OF EARLY PAYMENT OF DEBT THE NATURALGAS SERVICES CONCERN SAID IT CUT ITS TOTAL DEBT TO 739 MILLION FROM 1424 MILLION BY PAYING 685 MILLION IN SENIOR DEBT OWED TO ITS PRINCIPAL CREDITOR NOREX AMERICA INC A UNIT OF NOREX PLC OF LONDON THE CHARGE INCLUDES A 35 MILLION PREPAYMENT PREMIUM AND 33 MILLION IN PREVIOUSLY DEFERRED FEES AND EXPENSES RELATED TO THE FINANCING ZAPATA SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER RC LASSITER SAID IN A STATEMENT IN LIGHT OF CURRENT INTEREST RATES IT IS MOST ECONOMIC FOR ZAPATA TO PREPAY A SUBSTANTIAL PORTION OF ITS SENIOR DEBT THE REMAINING DEBT AGREEMENTS HAVE NO COVENANTS WHICH WOULD INHIBIT ZAPATA'S ABILITY TO MOVE QUICKLY TO MAKE STRATEGIC ACQUISITIONS ZAPATA HAS ALREADY SAID THAT ITS FISCAL FIRST QUARTER WILL INCLUDE A 338 MILLION PRETAX GAIN FROM THE SALE OF STOCK FOR THE QUARTER ENDED DEC 31 1992 ZAPATA REPORTED NET INCOME OF 1 MILLION OR ONE CENT A SHARE ON REVENUE OF 709 MILLION 9312100073 931210 BUSINESS BRIEF CHARLES SCHWAB CORP BROKERAGE UNIT SETS RECORD IN MONTHLY TRADING ACTIVITY THE DISCOUNTBROKERAGE UNIT OF CHARLES SCHWAB CORP POSTED RECORD AVERAGE DAILY TRADING ACTIVITY FOR THE SECOND CONSECUTIVE MONTH REPORTING THAT NOVEMBER VOLUME OUTPACED OCTOBER'S BY 62 THE UNIT CHARLES SCHWAB & CO AVERAGED 43100 TRADES A DAY LAST MONTH COMPARED WITH OCTOBER'S 40600 THE FIGURE INCLUDES MUTUALFUND AND NONMUTUALFUND TRADES THROUGH ITS MUTUALFUND SERVICE SCHWAB AVERAGED MORE THAN 10000 DAILY TRADES IN OCTOBER THE FIRM AVERAGED 9900 MUTUALFUND TRADES A DAY THE UNIT BASED IN SAN FRANCISCO AVERAGED 32400 DAILY NONMUTUALFUND TRADES IN NOVEMBER SCHWAB SAID IT HAS MORE THAN 24 MILLION ACTIVE CUSTOMER ACCOUNTS 9312100072 931210 SETTLEMENT APPROVED IN DELVAL FINANCIAL SHAREHOLDERS LAWSUIT BOGOTA NJ DELVAL FINANCIAL CORP SAID A FEDERAL COURT IN NEW YORK APPROVED A SETTLEMENT OF A SHAREHOLDER CLASSACTION LAWSUIT IN SEPTEMBER THE REAL ESTATE INVESTMENT TRUST REACHED A SETTLEMENT THAT CALLED FOR IT TO ISSUE AMONG HOLDERS IN THE CLASS 900000 COMMON SHARES AT A GUARANTEED VALUE OF 150 EACH AND 9 MILLION IN NOTES AND MAKE A PAYMENT OF CASH OR COMMON OF ABOUT 14 MILLION THE COMPANY SAID THERE ARE ABOUT 9000 INDIVIDUAL SHAREHOLDERS IN THE CLASS THE SUITS CONSOLIDATED IN EARLY 1991 WERE FILED AFTER A PRECIPITOUS DROP IN THE STOCK PRICE IN LATE 1990 AFTER DELVAL MANAGEMENT ANNOUNCED THE COMPANY WAS HAVING LIQUIDITY PROBLEMS THE SUITS ALLEGED THAT IN MAKING SECURITIES OFFERINGS MANAGEMENT HAD WITHHELD OR MISPREPRESENTED INFORMATION ABOUT THE COMPANY'S LIQUIDITY AND BUSINESS AN ATTORNEY FOR DELVAL SAID LIQUIDITY PROBLEMS CONTINUE BUT THAT THE COMPANY HOPES TO INCREASE REVENUE BY ENTERING NEW BUSINESSES DELVAL WILL SEEK SHAREHOLDER APPROVAL AT ITS ANNUAL MEETING NEXT WEEK TO DISQUALIFY THE COMPANY AS A REAL ESTATE INVESTMENT TRUST SO IT CAN ENGAGE IN OTHER BUSINESSES 9312100071 931210 INTERNATIONAL BRIEF SANDOZ AG RESTRUCTURING PLANNED IN BID TO BOLSTER BIOTECH RESEARCH SANDOZ AG ANNOUNCED A RESTRUCTURING TO BOLSTER ITS BIOTECHNOLOGY RESEARCH WITHIN SANDOZ PHARMA THE ZURICH COMPANY'S PHARMACEUTICAL WING RESEARCH AND DEVELOPMENT WILL BE DIVIDED INTO TWO SEPARATE UNITS EACH WITH INDEPENDENT MANAGERS AS OF JAN 1 URS BAERLOCHER A MEMBER OF THE SANDOZ EXECUTIVE BOARD AND CHIEF EXECUTIVE OF SANDOZ PHARMA SAID THAT AROUND 30 OF THE COMPANY'S WORLDWIDE RESEARCH IS FOCUSED ON BIOTECHNOLOGY AND THAT THE FIGURE IS RISING BY SEPARATING RESEARCH AND DEVELOPMENT EACH SEGMENT COULD FOCUS ITS EFFORTS BETTER HE SAID RESEARCH AND DEVELOPMENT HAVE DIFFERENT LAWS HE EXPLAINED RESEARCH IS CREATIVE DEVELOPMENT CAN BE RUN AS AN EFFICIENT PRODUCT CENTER MR BAERLOCHER SAID EFFICIENCIES PROMISED BY THE RESTRUCTURING COULD IN SOME CASES SPEED UP THE ENTRY OF NEW PRODUCTS BY TWO YEARS 9312100070 931210 CHINA A SPECIAL REPORT BUSINESS PLAN SEVENYEAR HITCH PROFITABLE AT LAST THE CONDRELLS' MAILORDER FIRM HAS HIT NEARLY EVERY POTHOLE ALONG CHINA'S CAPITALIST ROAD BY DANA MILBANK GUANGZHOU CHINA EVER THOUGHT ABOUT CHUCKING IT ALL AND STARTING A BUSINESS SURE YOU HAVE BUT HOW ABOUT DOING IT 10000 MILES AWAY IN AN EXOTIC LAND THAT'S WHAT PAUL AND STACY CONDRELL DID SEVEN YEARS AGO NOW THEY LIVE AND WORK IN THE SAN YUAN LI SLUM HERE AROUND THE CORNER FROM THE BURNING GARBAGE HEAP DOWN THE MUDDY ALLEY WHERE THE MIGRANT WORKERS SLEEP TWO FLIGHTS UP FROM THE NEIGHBOR'S CHICKEN AND THEY COULDN'T BE HAPPIER AFTER YEARS OF FALSE STARTS AND EXPENSIVE FLOPS THE YOUNG COUPLE FROM VIRGINIA HAVE FINALLY FOUND PROFITABILITY IN BUILDING ONE OF CHINA'S FIRST MAILORDER COMPANIES THEIR UNLIKELY STRATEGY PEDDLING SWISS ARMY KNIVES SLINKY BIKINIS WEDDINGDRESS PATTERNS AND COFFEETABLE BOOKS 1001 IMAGES OF DOGS AND THE LIKE TO CHINA'S EMERGING CONSUMERS THE STORY OF THE CONDRELLS' SEVENYEAR STRUGGLE IS IN SOME WAYS A DOITYOURSELF GUIDE FOR SMALL BUSINESSES THINKING OF SETTING UP SHOP IN THE WORLD'S MOST POPULOUS AND ENIGMATIC MARKETPLACE AND THEIR ADVENTURES FROM ROMANCING THE TAX MEN TO FINDING THEMSELVES LOCKED OUT OF A HOTEL IN INNER MONGOLIA CAN BE DISTILLED INTO TWO BITS OF ADVICE DO EXPECT LOTS OF POLITICAL MANEUVERING DON'T EXPECT TO GET RICH QUICK EVERYONE WANTS TO MAKE MONEY IN CHINA BUT NINE OUT OF 10 TIMES YOU CAN'T MR CONDRELL SAYS THERE'S DEFINITELY OPPORTUNITY HERE BUT IT'S ONLY OPEN TO PEOPLE WHO ARE WILLING TO MAKE MONEY WITH GUERRILLA TACTICS OPERATING AS A GUERRILLA MEANS THERE'S LITTLE BUSINESS AS USUAL THE CONDRELLS' WEEKLY BANKING ACTIVITIES INCLUDE HAULING A BAG STUFFED WITH SMALL BILLS FROM THE POST OFFICE ACROSS TOWN BACK TO THE OFFICE SAFE BY BICYCLE BUSINESS TRAVEL IS AN OVERNIGHT RIDE IN A DIRTY SHIP TO HONG KONG WHERE THEY SLEEP IN THE YMCA AND EAT COLD SANDWICHES IN THEIR ROOM ORDER PROCESSING INVOLVES HAVING MS CONDRELL CARRY THE FORMS ONCE AGAIN ON A RICKETY BIKE ACROSS A BUSY HIGHWAY AND THROUGH A FOULSMELLING EGG MARKET TO A WAREHOUSE OVERLOOKING THE AIRPORT LANDING STRIP AND A PAIR OF WATER BUFFALO THIS SAYS MR CONDRELL DODGING THE TWOWHEELED TRAFFIC OUTSIDE HIS OFFICE IS THE THIRD WORLD FORGET ABOUT TOLLFREE TELEPHONE LINES OVERNIGHT SHIPMENTS AND MONEYBACK GUARANTEES CHINA HAS AN ERRATIC POST OFFICE NO PERSONAL CHECKS FEW CREDIT CARDS OR PHONES AND A COLLECTION OF KAFKAESQUE LAWS STACKED AGAINST INVESTORS PARTICULARLY FOREIGN INVESTORS FORTYFIVE YEARS OF COMMUNISM HAVE REWARDED WORKERS FOR LAZINESS THE GOVERNMENT MEANWHILE CAN SHUT DOWN A BUSINESS LIKE THE CONDRELLS' AT ANY MOMENT WE COULD ALL BE WEARING MAO SUITS THREE YEARS FROM NOW MR CONDRELL MUSES AND THEN THERE ARE THE LITTLE SURPRISES AS MR CONDRELL DISCUSSES HIS BUSINESS A PHONE CALL COMES FROM BEIJING HIS SHIPPER HAS INEXPLICABLY SENT 10000 OF HIS CATALOGS TO AN AUTOPARTS COMPANY IN ZHONGSHAN FOUR HOURS AWAY A SHORT TIME LATER FIRECRACKERS EXPLODE RIGHT OUTSIDE THE WINDOW SENDING MR CONDRELL LEAPING FROM HIS CHAIR NO WONDER MUCH OF THE HUGE US MAILORDER BUSINESS DOESN'T SEEM TO HAVE CHINA ON ITS MAPS LANDS' END INC WHICH HAS ALREADY EXPANDED INTO CANADA AND BRITAIN IS LOOKING AT SEVERAL OTHER COUNTRIES BUT NOT CHINA IT'S NOT THE LOWESTHANGING FRUIT ON THE TREE SAYS WILLIAM O'NEAL INTERNATIONAL VICE PRESIDENT FOR THE DODGEVILLE WIS COMPANY HE PREFERS COUNTRIES WITH CREDIT CARDS TOLLFREE NUMBERS OR AT LEAST TELEPHONES AND EFFICIENT DELIVERY LANDS' END TURNED DOWN A REQUEST FROM THE CONDRELLS TO DISTRIBUTE ITS CATALOG MCCALL PATTERN CO ON THE OTHER HAND HIRED THE CONDRELLS IN 1986 AS CONSULTANTS AND STILL SELLS ITS SEWING PATTERNS THROUGH THEIR CATALOG VERY FEW COMPANIES KNOW HOW TO ATTACK THE SYSTEM IN A DECENTRALIZED ENTREPRENEURIAL WAY SAYS ROBERT L HERMANN CHIEF EXECUTIVE OF THE CLOSELY HELD NEW YORKBASED COMPANY IF YOU GO THROUGH THE GOVERNMENT AS MOST BIG COMPANIES DO THEY TAKE YOUR MONEY AND BURY IT SOMEPLACE THE CONDRELLS GREW UP IN THE SUBURBS HE NEAR WASHINGTON SHE OUTSIDE DETROIT WITH NO CLOSER TIE TO CHINESE CULTURE THAN TAKEOUT LOMEIN BUT AT DARTMOUTH COLLEGE MS CONDRELL FOUND HERSELF DRAWN TO THE WARLORDS AND OPIUM TRADING OF CHINESE HISTORY MR CONDRELL AT LAWRENCE UNIVERSITY IN WISCONSIN WAS SIMILARLY FASCINATED BY THE CHINESE SYMBOLS HE ENCOUNTERED IN HIS LINGUISTICS COURSES THE TWO MET AFTER COLLEGE IN 1983 WHILE STUDYING CHINESE IN BEIJING AND SOON DECIDED TO START A BUSINESS TOGETHER IN CHINA THE IDEA WAS MR CONDRELL'S AS A COLUMBIA LAW SCHOOL STUDENT WORKING FOR BAKER & MCKENZIE IN CHINA HE WATCHED MANY OF THE BIG LAW FIRM'S CLIENTS FLOUNDERING IN BUREAUCRATIC WHIRLPOOLS I FIGURED THERE'S GOT TO BE A BETTER WAY HE SAYS THE TWO REGISTERED THEIR COMPANY US CHINA INVESTMENT CORP IN DELAWARE IN 1986 AND WITH 13000 OF BORROWED MONEY AND A CONTRACT TO DO A MARKET STUDY FOR MCCALL MOVED TO BEIJING MS CONDRELL NOW 31 YEARS OLD DID IT FOR THE ADVENTURE AND THE CHALLENGE A LOT OF THINGS ARE BROKEN HERE THAT NEED FIXING SHE SAYS MY INSTINCT IS TO FIX THEM BUT MR CONDRELL'S CHIEF GOAL WAS PROFIT WE'RE NOT HERE TO DO GOOD THINGS FOR THE CHINESE PEOPLE SAYS THE WRY LANKY 33YEAROLD THREE OR FOUR YEARS FROM NOW THIS THING WILL BE WORTH A BUNDLE AND WE'LL SELL IT AT FIRST THE COUPLE TRIED MARKETING BURPEE VEGETABLE SEEDS FIGURING CHINESE FARMERS WOULD CLAMOR FOR THE HIGHERYIELDING AMERICAN PRODUCT W ATLEE BURPEE CO AGREED TO SUPPLY SEEDS AT A 20 DISCOUNT HOWEVER THE CONDRELLS' VISION OF A BIGGER AND BETTER TOMATO FOR CHINA WENT ROTTEN GOVERNMENT SANITARY REGULATIONS HELD UP SALES OF NEW SEEDS FOR AS MUCH AS FIVE YEARS AND THE GOVERNMENT HEAVILY SUBSIDIZED ITS OWN SEEDS UNDERCUTTING THE CONDRELLS THAT WAS A BIG FAILURE MR CONDRELL CONCEDES WE PLAYED BY THE RULES AND IT WAS FATAL NEXT THEY TRIED SELLING CASSETTE TAPES OF CLASSICAL MUSIC WHICH PROVED POPULAR WITH CONSUMERS BUT BECAUSE THE MUSIC STORES WERE ALL STATERUN THE SYSTEM KILLED THAT IDEA TOO THIS TIME THROUGH OVERLY CAUTIOUS ORDERING BUREAUCRATS WOULD ORDER ONE OF EACH TAPE IN THE SET BUT WOULDN'T REORDER THE BACH AND BEETHOVEN NO MATTER HOW STRONG THE DEMAND UNTIL EVERY LAST LISZT WAS SOLD THE CONDRELLS DABBLED IN AIR FRESHENERS CABLE AND WIRE AND EVEN MEDICAL EQUIPMENT ALL TO NO AVAIL FELLOW ENTREPRENEURS FLOPPED AS WELL A FRIEND IN THE MUSIC BUSINESS LOST 1 MILLION IN CHINA BEFORE GOING BANKRUPT ANOTHER WOULDBE TYCOON STARTED A PIZZA JOINT IN GUANGZHOU WITH GRAND PLANS TO ADD A NEW YORKSTYLE DELI THE PROJECT QUICKLY FOLDED THE CONDRELLS' MARKET STUDY FOR MCCALL'S DRESS PATTERNS LOOKED PROMISING CHINA HAD PLENTY OF CHEAP FABRIC AND SEWING MACHINES AND NO DESIGNS BUT AGAIN THE GOVERNMENT GOT IN THE WAY AS REPRESENTATIVES FOR MCCALL RECEIVING 12500 A MONTH FOR SALARY AND EXPENSES THE CONDRELLS DECIDED TO PLAY BY THE RULES ONCE MORE THEY FORMED A MARKETING PARTNERSHIP WITH A GOVERNMENT IMPORTER FOUND SPACE IN A GOVERNMENT WAREHOUSE AND RESOLVED TO SELL THE PATTERNS IN GOVERNMENTOWNED DEPARTMENT STORES THE COST WAS HIGH ALL TOLD THE GOVERNMENT AGENCIES CLAIMED 45 OF THE PROCEEDS THIS BARGAIN WITH THE DEVIL PROVED A DISASTER MR CONDRELL SAYS THE GOVERNMENT PARTNERS SHOWED NO INTEREST IN THE BUSINESS THEY IMPOSED ARBITRARY FEES ON THE MCCALL SALES COUNTERS FOR FASHION WEEK SAY OR TO BUY NEW UNIFORMS FOR THE STORE'S WORKERS THE GOVERNMENT WORKERS IN THE WAREHOUSE AND THE STORES HAVING BEEN PAID FOR YEARS TO DO NOTHING DID EXACTLY THAT MOREOVER CHINESE CONSUMERS DIDN'T UNDERSTAND HOW THE PATTERNS WORKED THOUGH THE CONDRELLS SPENT MONTHS TRANSLATING THE INSTRUCTIONS SO EACH 2 SALE REQUIRED A 20MINUTE EXPLANATION SOME STORES SOLD ONLY A PATTERN OR TWO A DAY THE CONDRELLS THOUGHT ABOUT QUITTING MCCALL HOWEVER THOUGHT OTHERWISE AND SET A GOAL OF 200 SALES COUNTERS THAT'S WHEN THE PAIR WOUND UP IN INNER MONGOLIA ON AN EIGHTCITY TRAIN TRIP WHEN THE TRAIN ARRIVED AT 330 AM IN BAOTOU THE CONDRELLS HAD TO PLEAD WITH A TOOTHLESS GUARD FOR 20 MINUTES BEFORE HE GAVE THEM A ROOM ONE WITHOUT HEAT MEANWHILE THE BREAKEVEN POINT STRETCHED FROM THREE YEARS TO FIVE YEARS AND THEN BEYOND THE COUPLE OPENED ONLY 50 OF THE 200 PLANNED OUTLETS AND WOUND UP CLOSING ALL BUT 12 BY LAST YEAR MCCALL'S LOSSES HAD REACHED 1 MILLION SAYS MS CONDRELL I FELT LIKE AN ACROBAT SPINNING PLATES ON POLES AT THAT POINT THE COUPLE DECIDED TO CHANGE THEIR APPROACH MR CONDRELL LIKENS SMALL ENTREPRENEURS IN CHINA TO MAGGOTS BURROWING INTO THE CARCASS OF THE ECONOMIC SYSTEM AVOIDING STATE PARTNERSHIPS AND SOMETIMES BENDING THE RULES IT'S DIRTY IT'S SMELLY BUT THE REWARD IS THAT YOU HAVE A PROFITABLE BUSINESS WITH VERY LITTLE COMPETITION AND UNLIMITED GROWTH HE SAYS IT'S A MATTER OF COURAGE ADDS JON L CHRISTIANSON WHO WORKED WITH THE CONDRELLS IN 1987 AND IS NOW A CORPORATE LAWYER WITH SKADDEN ARPS SLATE MEAGHER & FLOM IN HONG KONG IT'S A BIG LEAP ONE I HAVEN'T BEEN ABLE TO MAKE THE CONDRELLS FINALLY MADE THEIR LEAP WITH A MAILORDER OPERATION THEY HAD STARTED AS AN OFFSHOOT OF THEIR MCCALL PATTERN SALES THEY WENT INTO THE BUSINESS FULL TIME AT THE BEGINNING OF THIS YEAR WITH 100000 OF THEIR OWN MONEY AND 100000 OF MCCALL INVENTORY CALLED HEALTHY HOUSEHOLD THE BUSINESS NOW HAS COMPUTERS FOR PROCESSING ORDERS A WAREHOUSE 22 CHINESE WORKERS AND A CUSTOMER LIST OF 150000 WHICH GROWS BY 300 A DAY AS PEOPLE RESPOND TO MAGAZINE ADS SALES ARE NEARING 1 MILLION A YEAR AND THE BUSINESS IS ALREADY PROFITABLE STILL THE CONDRELLS' SUCCESS DOESN'T EXACTLY LET THEM LIVE LAVISHLY WHILE MANY EXPATRIATES WORKING FOR MULTINATIONALS IN CHINA HAVE MAIDS AND 6000AMONTH HOUSING THE CONDRELLS PAY 260 A MONTH FOR A SMALL APARTMENT THAT DOUBLES AS THEIR OFFICE AND THEY KEEP ALL OTHER EXPENSES TO ABOUT 200 A MONTH THEIR TOILET IS A HOLE IN THE FLOOR THAT ALSO SERVES AS A SHOWER DRAIN AND DOESN'T FLUSH BY ITSELF THEY SHARE THEIR PHONE LINE WITH 14 OTHER TENANTS AND EVERY TWO WEEKS OR SO THE ELECTRICITY FAILS SENDING MR CONDRELL TO THE ROOF TO START HIS GENERATOR ORANGE JUICE IS A LUXURY HEALTH CLUBS AND MOVIES MEMORIES THE CONDRELLS MOVED FROM BEIJING TO THIS CITY ONLY 90 MILES FROM HONG KONG IN JANUARY IT'S ABOUT AS FAR AS YOU CAN GET FROM THE CENTRAL GOVERNMENT AND CALLS TO MIND A CHINESE PROVERB THE SKY IS HIGHER THE FARTHER YOU GET FROM THE EMPEROR EVEN IN GUANGZHOU THOUGH THE ENTREPRENEUR MUST KNOW WHICH OF CHINA'S LAWS TO OBEY WHICH TO FINESSE AND WHICH TO IGNORE TAKE THE PROHIBITION AGAINST FOREIGN OWNERSHIP IN MANY INDUSTRIES BECAUSE THE CONDRELLS CAN'T OWN THEIR BUSINESS THEY ESSENTIALLY LEASE AN EMPLOYEE FROM A STATEOWNED BUSINESS TO ACT AS THE OWNER FOR 220 A MONTH THE GOVERNMENT RENTS THE CHINESE WORKER A STOREFRONT AND WITH IT A BUSINESS LICENSE THE STOREFRONT WHICH SELLS PATTERNS IS MORE FRONT THAN STORE A TINY STALL WITH CRACKED PAINT AND A LISTLESS CLERK BUT THE LICENSE ALLOWS ITS HOLDER A MEMBER OF THE COMMUNIST PARTY AND A STUDENT OF MARX AND LENIN TO OWN THE MAILORDER BUSINESS THIS IS A BIG RISK FOR THE CONDRELLS FOR THEIR PARTNER COULD LEGALLY WALK OFF WITH ALL OF THE COMPANY'S MONEY AND EQUIPMENT THE CONDRELLS THINK THEIR ARRANGEMENT REFLECTS ANOTHER CHINESE SAYING ONE ABOUT MAKING ORDERS FROM BEHIND THE CURTAIN CHINESE EMPRESSES ONCE DID THAT FOR INFANT EMPERORS AND THAT'S WHAT THE CONDRELLS DO WITH THE CHINESE OWNER THE CONDRELLS' 38YEAROLD PARTNER IS THE BEST OF THEIR GUANXI OR CONNECTIONS WHICH ARE ESSENTIAL FOR DOING BUSINESS HERE THE CONDRELLS' APARTMENT IS LEASED UNDER HIS BUSINESS LICENSE WHEN FOUR POLICEMEN CAME TO THE DOOR ONE DAY AND THE CONDRELLS FEARED EVICTION THE PARTNER CALLED SOME OF HIS COMMUNIST PARTY FRIENDS THE POLICE BACKED OFF THE CHINESE PARTNER ALSO HANDLES MUCH OF THE NECESSARY SCHMOOZING HE BRINGS THE TAX AUTHORITIES 12 PICTURE BOOKS FROM THE CATALOG AS GIFTS AND HAS BEEN KNOWN TO TAKE THE WHOLE TAX DEPARTMENT TO DINNER GENERALLY I DON'T BREAK ANY RULES THE PARTNER SAYS STEPPING THROUGH THE LOOPHOLES THAT'S OK THE CONDRELLS ALSO PAY FEES TO CHINESE REPORTERS TO RUN FAVORABLE STORIES ABOUT THE COMPANY A COMMON PRACTICE HERE AND THEY IGNORE A BAN ON USING A FAX MACHINE WITHOUT PAYING THE GOVERNMENT A STEEP FEE SOME LAWS ON THE BOOKS ARE SO WIDELY DISREGARDED AS TO BE RIDICULOUS MR CONDRELL SAYS THE GOVERNMENT WHICH APPARENTLY REALIZES THAT SOME LAWS CONFLICT WITH ITS HOPE OF ENCOURAGING INVESTMENT DOESN'T ENFORCE SUCH RULES AS LONG AS VIOLATORS ARE DISCREET THE REAL LAW IS WHAT'S ENFORCED SAYS MR CONDRELL AND WE'RE NOT VIOLATING ANYTHING THAT'S ENFORCED EVEN THE GOVERNMENT SOMETIMES COOPERATES IN LAWBREAKING SHANGHAI STYLE MAGAZINE A GOVERNMENTOWNED PUBLICATION WITH A CIRCULATION OF 450000 TOLD THE CONDRELLS THEY COULDN'T PLACE A COLOR ADVERTISEMENT BECAUSE A GOVERNMENT RULE ALLOWS ONLY FOUR PAGES OF COLOR ADS IN EACH ISSUE SO THE CONDRELLS PROPOSED RUNNING THE COLOR AD BUT CALLING IT A PHOTO FEATURE THE CONDRELLS GOT THEIR AD AND THE MAGAZINE GOT ITS 800 THAT'S HOW THE GAME IS PLAYED MS CONDRELL SAYS ADDING WE'RE TRYING TO BUILD A BUSINESS ON AN HONEST DAY'S WORK THAT OF COURSE ISN'T EASY THE CONDRELLS HAVE TO RAISE THEIR PRICES 20 A YEAR TO KEEP PACE WITH INFLATION THEY CAN'T PUT MUCH MONEY INTO CHINESE BANKS BECAUSE IT'S DIFFICULT TO RETRIEVE THE FUNDS AND THEY'RE STUCK WITH THE GOVERNMENTOPERATED POST OFFICE A MARVEL OF INEFFICIENCY WHERE EVERYTHING IS COUNTED THREE TIMES BY TWO DIFFERENT PEOPLE AND WHICH TAKES FIVE OR SIX WEEKS TO DELIVER GOODS TO THE CONDRELLS' CUSTOMERS TO ORDER FROM THE CONDRELLS' CATALOG PEOPLE LINE UP AT THE POST OFFICE FOR AS LONG AS AN HOUR TO BUY A MONEY ORDER THE CONDRELLS OR THEIR EMPLOYEES THEN COLLECT THE MONEY ON THEIR END IN A GYM BAG THIS COUNTRY ADDS DOZENS OF THINGS TO YOUR WORK LOAD MR CONDRELL SAYS THAT'S TOUGH FOR US BUT IT ALSO KEEPS THE COMPETITION AWAY FOR ALL ITS SHORTCOMINGS THE POST OFFICE ALSO PROVIDES A MORE DIRECT ROUTE TO THE CONSUMER THE MAILING LIST IS CAPITAL MR CONDRELL SAYS COUNTERS IN STATERUN STORES ARE FLIMSY HEALTHY HOUSEHOLD CATERS TO THE TASTES OF THE CHINESE MIDDLE CLASS WITH OFFERINGS THAT INCLUDE CLOTHING AND COSTUME JEWELRY CUSTOMERS CAN ALSO BUY AMERICAN CATALOGS SUCH AS JC PENNEY'S GENERALLY JUST FOR BROWSING THESE OTHER CATALOGS ARE READ IN CHINA LIKE FASHION MAGAZINES TO WIN OVER SUSPICIOUS CONSUMERS HEALTHY HOUSEHOLD HAS TRIED SOME AMERICAN TACTICS AS AN INDIVIDUAL I GUARANTEE THE CATALOG'S READABILITY THE PRODUCTS' VALUE AND OUR MAILORDER SERVICE MR CONDRELL WRITES IN AN INTRODUCTION TO THE CATALOG I WILL TREAT YOU LIKE ONE OF THE FAMILY HE RECENTLY BOUGHT A LIST OF CHINESE CREDITCARD HOLDERS AND SENT THEM LETTERS SAYING NOW THAT YOU HAVE A CREDIT CARD IT MEANS YOU'RE NOT AN ORDINARY JOE NOW YOU NEED THE HEALTHY HOUSEHOLD ONE THOUSAND RECIPIENTS SIGNED UP THOUGH ORDERS FOR THE CONDRELLS' MERCHANDISE AVERAGE JUST A FEW DOLLARS EACH THE COUPLE RECEIVES SOME 600 DAILY ABOUT HALF FROM REPEAT CUSTOMERS RECENTLY A WOMAN FROM SICHUAN PROVINCE RESPONDED TO THE CONDRELLS' AD IN CHINA'S MODERN DRESSMAKING BY ORDERING A SEWING MACHINE 13 CATALOGS AND A COUPLE OF SEWING PATTERNS FOR A TOTAL OF ABOUT 160 THE SAME DAY A WORKER AT A GOVERNMENT COMPANY IN REMOTE NORTHERN CHINA ORDERED A DRESS PATTERN AND A ONEYEAR SUBSCRIPTION TO HEALTHY HOUSEHOLD'S CATALOG FOR 8 THAT COULD BE 10 DAYS' WAGES MR CONDRELL NOTES HEALTHY HOUSEHOLD'S SUCCESS SUGGESTS THAT CHINESE CONSUMERS THOUGH POOR ARE EAGER FOR PRODUCTS THEY CAN'T GET THROUGH STATERUN BUSINESSES WHEN CUSTOMERS BUY SINGER SEWING MACHINES IN GOVERNMENT STORES FOR EXAMPLE THEY HAVE A CHOICE OF ONLY BROWN OR GRAY AT HEALTHY HOUSEHOLD THE PURPLE SINGERS OFFERED OUTSELL BROWN AND GRAY MODELS 4 TO 1 THE CONDRELLS GET ABOUT 100 LETTERS A DAY FROM CUSTOMERS MANY OFFERING THANKS FOR BRINGING NEW PRODUCTS TO CHINA ONE 19YEAROLD FROM IMPOVERISHED HENAN PROVINCE IN CENTRAL CHINA SAID SHE HAD STUDIED THE CATALOG AGAIN AND AGAIN WHERE I LIVE I CAN'T GET GOOD FASHION INFORMATION BECAUSE THE INFORMATION CAN'T REACH ME SHE WROTE I NEVER TIRE OF READING IT MR CONDRELL SAYS HE HOPES THAT WHEN THEY SELL THE COMPANY IN A FEW YEARS HE AND HIS WIFE WILL LEAVE CHINA WITH 2 MILLION TO 3 MILLION THEY PLAN TO BUY A FARM IN VIRGINIA AND START A NEW BUSINESS WITH FEWER RISKS AND MOST LIKELY FEWER REWARDS MR CONDRELL WHO HAS ABANDONED HIS PLANS TO BECOME A LAWYER LOOKS FORWARD TO TUNING IN NATIONAL PUBLIC RADIO AGAIN AND EATING HAAGENDAZS ICE CREAM MS CONDRELL IS EAGER TO BAKE TOLLHOUSE COOKIES IN A KITCHEN WITH REAL APPLIANCES AND POTABLE WATER IN THE STATES LIFE'S SO RICH SHE SAYS HERE IT'S VERY GRAY MR MILBANK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9312100069 931210 INTERNATIONAL BRIEF SCHERING AG BOOST IN DIVIDEND PAYMENT FOR '93 TO BE RECOMMENDED SCHERING AG A GERMAN PHARMACEUTICALS AND AGROCHEMICAL GROUP IN BERLIN SAID IT WILL RECOMMEND PAYING A DIVIDEND OF 1422 MARKS 834 A SHARE FOR 1993 UP FROM 13 MARKS IN 1992 THE HIGHER PAYOUT IS AIMED AT OFFSETTING A CHANGE IN GERMANY'S CORPORATE TAX LAW THAT WILL REDUCE SHAREHOLDERS' TAX CREDIT ON DIVIDEND INCOME ESSENTIALLY SCHERING SHAREHOLDERS WILL RECEIVE AN UNCHANGED NET DIVIDEND DESPITE CHANGES IN THE TAX LAW SCHERING STOCK JUMPED 39 MARKS OR 36 TO 1124 MARKS YESTERDAY WHILE MUCH OF THAT RISE WAS ATTRIBUTED TO THE DIVIDEND ANNOUNCEMENT MARKET OBSERVERS SAID THE PRICE ALSO WAS REBOUNDING FROM PESSIMISTIC REMARKS ON SCHERING MADE BY A BRITISH ANALYST WEDNESDAY THE COMPANY'S SUPERVISORY BOARD WILL MEET MARCH 10 TO VOTE ON THE DIVIDEND RECOMMENDATION 9312100068 931210 CHINA A SPECIAL REPORT BUSINESS PLAN LEARNING FROM THE PAST EVEN THE MIGHTY HAVE FALLEN IN CHINA BUT THE EXPERIENCE HAS HELPED PUT HONEYWELL IBM AND AT&T ON A SURER FOOTING BY CRAIG S SMITH HONG KONG FOR A BETTER IDEA OF WHAT IT TAKES TO OPERATE IN CHINA JUST LOOK AT THE EXPERIENCES OF A FEW BIG CORPORATIONS THAT BOLLIXED THINGS UP THEIR FIRST TIME AROUND CONSIDER AMERICAN TELEPHONE & TELEGRAPH CO BACK IN THE EARLY 1980S IN A SHOW OF CORPORATE HUBRIS AT&T DISMISSED CHINA AS A BACKWATER IT ALSO BUNGLED SO BADLY THE SALES IT DID MAKE THAT THE CHINESE FED UP TURNED TO THE COMPANY'S COMPETITORS NOW CHASTENED AT&T IS STARTING ALL OVER AGAIN WE LEARNED TO DO THE HOMEWORK TO REALLY UNDERSTAND THE CUSTOMER'S NEEDS THEN MAKE THE FULL CORPORATE COMMITMENT TO SATISFY THOSE NEEDS SAYS JAY CARTER THE PRESIDENT OF AT&T ASIA/PACIFIC'S NETWORKSYSTEMS DIVISION AT&T ISN'T ALONE INTERNATIONAL BUSINESS MACHINES CORP SQUANDERED ITS LEAD IN CHINA'S EMERGING PERSONALCOMPUTER MARKET AND HONEYWELL INC SPENT YEARS LIMPING ALONG IN CHINA WITH A FLATFOOTED PARTNER ASSIGNED BY THE STATE THERE'S STILL A CHECK YOUR BRAIN AT THE BORDER' MENTALITY WHEN IT COMES TO CHINA SAYS GEORGE BAEDER MANAGING DIRECTOR OF PACIFIC RIM CONSULTING GROUP IN HONG KONG HERE'S HOW THESE THREE COMPANIES LOST THEIR WAY IN CHINA AND HOW THEY MANAGED TO GET BACK INTO THE GAME PLAYING BY THE RULES IN CHINA DOESN'T NECESSARILY MEAN YOU'LL WIN HONEYWELL LEARNED THAT LESSON THE HARD WAY IT PASSIVELY ALLOWED THE CHINESE GOVERNMENT TO PAIR IT WITH A BUSINESS PARTNER AND ENDED UP IN AN UNPROFITABLE ARRANGED MARRIAGE THE YEAR WAS 1984 AND HONEYWELL WAS SEDUCED BY THE NOTION OF A HUGE UNTAPPED MARKET FOR ITS INDUSTRIALCONTROL EQUIPMENT THE COMPUTER SYSTEMS THAT RUN SUCH THINGS AS OIL REFINERIES ALL IT NEEDED WAS THE RIGHT PARTNER PREFERABLY ONE THAT WAS WELL SITUATED AND HAD A THOROUGH KNOWLEDGE OF THE LOCAL MARKET THE COMPANY'S GAME PLAN SOUNDED FINE THAT IS TO EVERYONE BUT THE CHINESE GOVERNMENT WHICH HAD ITS OWN PARTNER IN MIND THE GOVERNMENT'S BUREAU OF INSTRUMENTATION INDUSTRY PROMPTLY DESIGNATED AS HONEYWELL'S BUSINESS PARTNER AN ISOLATED MONEYLOSING COMPANY DEEP IN THE HEARTLAND CHONGQINGBASED SICHUAN INSTRUMENT COMPLEX SET IN AN AREA RINGED BY MOUNTAINS SIC WAS BORN OF ONE OF MAO TSETUNG'S PERIODIC CAMPAIGNS TO MOVE STRATEGIC INDUSTRIES INLAND CERTAINLY THE MOUNTAINS CLOSING IN ON ALL SIDES ENSURE THAT IT'S PROTECTED FROM A MILITARY ASSAULT BY SEA BUT SIC IS ALSO CUT OFF FROM MUCH OF CHINA'S INDUSTRY FROM OTHER BIG CITIES FROM POTENTIAL CUSTOMERS AND FROM PRETTY MUCH EVERYTHING ELSE PERHAPS NOT SURPRISINGLY IT WAS A FAILURE AT HAWKING HONEYWELL'S LARGE SYSTEMS THEY HAD NO SELLING SKILLS SAYS TED SMITH HONEYWELL'S GENERAL MANAGER FOR CHINA THE COMPANY'S MAIN COMPETITOR MEANWHILE HAD A MUCH MORE ADEPT PARTNER LOCATED ON THE COAST IN SHANGHAI HONEYWELL PROBABLY MADE A BAD SITUATION EVEN WORSE WITH SOME MISSTEPS OF ITS OWN MR SMITH CONCEDES TO BEGIN WITH THE COMPANY'S TOP EXECUTIVES WEREN'T DEEPLY INVOLVED IN THE VENTURE THE FORAY INTO CHINA WAS DELEGATED TO A HONEYWELL JOINT VENTURE IN JAPAN AS A RESULT THE COMPANY DIDN'T HAVE A FIRM GRASP OF THE CULTURAL AND POLITICAL CHANGES SWEEPING THE COUNTRY WHILE IT WAS FOLLOWING BEIJING'S ORDERS FOR EXAMPLE HONEYWELL WASN'T AWARE THAT OUTSIDE THE CAPITAL THE CHINESE THEMSELVES WEREN'T LISTENING TO THE CENTRAL GOVERNMENT'S COMMANDS NOR FOR THAT MATTER WERE HONEYWELL'S COMPETITORS INDEED BY 1987 FOREIGN COMPETITORS WERE IGNORING GOVERNMENT RULES THAT PERMITTED ONLY CERTAIN STATESANCTIONED COMPANIES TO SELL INDUSTRIALCONTROL SYSTEMS THE COMPETITION BEGAN MAKING DIRECT SALES IN CHINA BYPASSING CHINESE PARTNERS ALTOGETHER WHEN HONEYWELL REALIZED WHAT WAS HAPPENING IT BELATEDLY BEGAN SELLING DIRECTLY TOO SHAKING FREE OF ITS PARTNER THOUGH WASN'T EASY AFTER THE GOVERNMENT COMPLAINED LOUDLY HONEYWELL ENDED UP BRINGING SIC INTO SOME DEALS FOR PURELY POLITICAL REASONS EVEN WHEN SIC HAD NOTHING TO CONTRIBUTE LUCKILY HONEYWELL HAD NEVER ENTERED INTO A FULLFLEDGED JOINT VENTURE WITH SIC THE TWO HAD SIGNED ONLY A LICENSING AGREEMENT ALLOWING SIC TO BUILD ONE PARTICULAR HONEYWELL SYSTEM THUS WHEN HONEYWELL CAME OUT WITH A NEW LINE TO REPLACE THE OLD ONE IT SIMPLY LEFT SIC BEHIND THAT WAS A DELICATE MATTER MR SMITH SAYS BUT WE DIDN'T WANT A REPEAT OF THE FIRST ROUND SINCE THEN HONEYWELL HAS BEEN STICKING TO BUSINESS RATHER THAN POLITICAL DECISIONS ABOUT HOW TO OPERATE IN CHINA IT SET UP A REPRESENTATIVE OFFICE IN THE CAPITAL AND LATER FOUND A PARTNER MORE TO ITS LIKING CHINA PETROCHEMICAL CO OR SINOPEC A STATEOWNED OIL COMPANY IN BEIJING THE TWO FORMED A JOINT VENTURE LAST YEAR TO SUPPLY CONTROL SYSTEMS TO SINOPEC'S REFINERIES HONEYWELL ALSO EXPECTS TO CONVERT ITS OFFICE IN BEIJING TO A WHOLLY OWNED FOREIGN ENTERPRISE THE NEW STATUS WILL ENABLE IT TO OPERATE IN THE LOCAL CURRENCY HIRE LOCAL EMPLOYEES AND SET UP A FULLSERVICE SALES OFFICE IN CHINA ALL OF WHICH REPRESENTATIVE OFFICES ARE FORBIDDEN TO DO HONEYWELL'S MISREADING OF THE BUSINESS CLIMATE COST US EARLY MARKET SHARE SAYS MR SMITH IT SLOWED DOWN OUR PROGRESS IN CHINA BUT HE ADDS THAT ONE MISTAKE HONEYWELL DIDN'T MAKE WAS POURING IN MONEY BEFORE IT FULLY UNDERSTOOD THE COUNTRY THERE WAS VERY LITTLE FINANCIAL DRAIN HE SAYS OF THE EARLIER FIASCO WE'VE MORE THAN RECOVERED OTHERS HAVE PAID MORE DEARLY THAN HONEYWELL BIG BLUE FOR ONE TOOK AN EXPENSIVE FALL IN PART BECAUSE OF A RADICAL SHIFT IT MADE IN ITS PRODUCT LINE CHINA HAD ALREADY ACCEPTED IBM AS THE STANDARD FOR PERSONAL COMPUTERS WHEN THE COMPANY IN 1987 SCRAPPED ITS PC MODELS IN FAVOR OF THE MORE ADVANCED PS/2 LINE THE PS/2 OF COURSE FLOPPED EVERYWHERE BECAUSE IT COULDN'T RUN SOFTWARE APPLICATIONS WRITTEN FOR THE OLDER MACHINES AND COULDN'T USE THE 5 1/4INCH DISKETTES STILL WIDELY POPULAR AT THE TIME BUT THE DEBACLE WAS EVEN WORSE IN CHINA THE NEW MACHINES DIDN'T HAVE ROOM FOR THE HARDWARE ADDONS THAT ENABLED PCS TO HANDLE CHINESE CHARACTERS IBM'S PERSONALCOMPUTER SALES PLUNGED SO PRECIPITOUSLY THAT THE COMPANY WAS LEFT WITH VIRTUALLY NO MARKET SHARE AT ALL COMPETITORS AST RESEARCH INC AND COMPAQ COMPUTER CORP WHOSE COMPUTERS ARE COMPATIBLE WITH THE ADDONS THAT MAKE CHINESE CHARACTERS POSSIBLE CAPTURED THE MARKET BY DEFAULT TODAY THEY ARE THE LEADERS IN CHINA'S PERSONALCOMPUTER MARKET WE DIDN'T ADDRESS THE END USER'S NEEDS CONCEDES SAMUELSON YOUNG GENERAL MANAGER OF IBM CHINA/HONG KONG'S PERSONAL BUSINESS SYSTEMS UNIT SO IBM HAS ALL BUT STARTED FROM SCRATCH IN CHINA MR YOUNG'S UNIT WAS SET UP IN JANUARY TO HANDLE PERSONALCOMPUTER MARKETING SERVICE AND PRODUCT DEVELOPMENT SPECIFICALLY FOR CHINA WE'VE BEEN GIVEN AUTONOMY SO THAT WE CAN RESPOND TO THE MARKET HE SAYS LATE LAST YEAR IBM ALSO LAUNCHED A NEW PERSONALCOMPUTER PRODUCT LINE THE PS/VALUE POINT THAT SUPPORTS THE OLD SOFTWARE AND CAN HANDLE CHINESE CHARACTERS WITHOUT THE NEED FOR ADDONS THE COMPANY SAYS ITS SALES HAVE GROWN SO FAST ALTHOUGH FROM AN ADMITTEDLY TINY BASE THAT ITS MAIN PROBLEM THIS YEAR HAS BEEN KEEPING UP WITH DEMAND RARELY HAS A SAVVY CORPORATE GIANT SO COMPLETELY MISREAD A MARKET AS AT&T DID IN CHINA A DECADE AGO CHINA IS WIDELY EXPECTED TO BE THE BIGGEST MARKET FOR TELEPHONE SWITCHING EQUIPMENT IN THE WORLD AND NOT JUST RIGHT NOW BUT FOR THE NEXT 30 YEARS YET AT&T SHRUGGED OFF THE COUNTRY AS UNIMPORTANT THE COMPANY'S PROBLEMS IN CHINA DATE BACK TO THE EARLY 1980S WHEN CHINA BEGAN SHOPPING FOR ADVANCED DIGITAL SWITCHING TECHNOLOGY TO UPGRADE ITS TELEPHONE NETWORK IT LOOKED TO THE US BUT AT&T WAS STILL A PROTECTED MONOPOLY WITH NO INTEREST IN TRANSFERRING ITS TOPOFTHELINE TECHNOLOGY TO A FLEDGLING MARKET AT&T'S COMPETITORS WEREN'T SO RELUCTANT HOWEVER FRANCE'S ALCATEL NV GERMANY'S SIEMENS AG AND JAPAN'S NEC CORP QUICKLY BECAME CHINA'S PRIMARY EQUIPMENT SUPPLIERS WE MAY HAVE THOUGHT THAT WE COULD WITHHOLD TECHNOLOGY BUT OUR EXPERIENCE HAS SHOWN US THAT YOU JUST CAN'T DO THAT SAYS AT&T'S MR CARTER AT&T DID EVENTUALLY SELL SOME SWITCHING EQUIPMENT TO CHINA IN THE MID1980S AFTER THE COMPANY HAD BEEN BROKEN UP AND HAD REALIZED THAT IT COULD NO LONGER RELY ON THE US MARKET ALONE BUT AS MR CARTER TELLS IT NOW THE SALES WERE A DISASTER FOR STARTERS NO ONE AT AT&T HAD STUDIED CHINESE TELEPHONE HABITS WHICH AS IT TURNS OUT ARE VASTLY DIFFERENT FROM THOSE IN THE US BECAUSE ACCESS TO PHONES IN CHINA IS LIMITED AND SERVICE ON EXISTING PHONE LINES IS GENERALLY BAD THERE IS TREMENDOUS COMPETITION FOR EVERY PHONE MOREOVER CHINESE CALLERS TEND TO TALK MUCH LONGER THAN DO CALLERS IN THE US SUCH CONDITIONS REQUIRE SWITCHES THAT ARE ENGINEERED IN A CERTAIN WAY BUT AT&T SIMPLY SHIPPED IN OFFTHESHELF UNITS WHICH WEREN'T UP TO THE TASK THE FIRST SWITCH INSTALLED IN WUHAN WAS QUICKLY OVERWHELMED BY THE VOLUME OF CALLS PEOPLE WERE STAYING ON THE TELEPHONE LINE CONTINUOUSLY MR CARTER RECALLS THEY WEREN'T HANGING UP AND THE SWITCH WASN'T ENGINEERED TO HANDLE THAT KIND OF TRAFFIC CALLS WOULDN'T GO THROUGH AND IN SOME CASES PEOPLE COULDN'T EVEN GET A DIAL TONE COMPLAINTS BEGAN PILING UP AT THE MINISTRY OF POST & TELECOMMUNICATIONS WHICH IN TURN COMPLAINED TO AT&T THROUGH THE COMPANY'S OFFICE IN HONG KONG AT&T AGAIN MISCALCULATING HADN'T SET UP AN OFFICE IN CHINA WITHOUT A LOCAL OFFICE TO FIX THE PROBLEMS AT&T HAD TO ORDER PARTS FROM THE US AND SHIP THEM ALONG WITH A NUMBER OF TECHNICIANS BACK TO CHINA THE PROCESS TOOK MONTHS DURING WHICH TIME THE SAME GLITCHES WERE SHOWING UP IN OTHER AT&T SWITCHES SOLD ELSEWHERE IN CHINA ALCATEL AND OTHER COMPETITORS FOR THEIR PART HAD LARGE TEAMS IN CHINA AND WERE INSTALLING SWITCHES WITH LITTLE PROBLEM AT&T THOUGHT THEY COULD GO IN AND SELL SWITCHES LIKE IT WAS IOWA SAYS ONE PERSON CLOSE TO THE COMPANY OTHERS FAMILIAR WITH THE TELEPHONE GIANT SAY THAT IT SAW EVERY SALE AS A PURELY COMMERCIAL TRANSACTION WHEREAS THE CHINESE VIEW EACH SALE MORE AS A BRICK IN THE FOUNDATION OF A RELATIONSHIP ON WHICH BIGGER BUSINESS CAN BE BUILT DISGUSTED THE CHINESE EVENTUALLY STOPPED BUYING FROM AT&T IN THE LATE 1980S THE COMPANY HAS BEEN TRYING TO MAKE UP FOR THE BLUNDER EVER SINCE AT&T'S NO 2 EXECUTIVE VICE CHAIRMAN RANDY TOBIAS HAS SPENT THE PAST TWO YEARS SHUTTLING BETWEEN NEW YORK AND BEIJING TRYING TO STRAIGHTEN THINGS OUT BUT IT WASN'T UNTIL LAST YEAR AFTER AT&T HAD SUCCESSFULLY LOBBIED WASHINGTON TO MAKE THE SALE OF DIGITAL SWITCHING EQUIPMENT A LINE ITEM IN A TRADE AGREEMENT WITH CHINA THAT AT&T WAS ABLE TO REENTER THE MARKET IN A SIGNIFICANT WAY THE COMPANY HAS SINCE SIGNED TENTATIVE AGREEMENTS WITH BEIJING THAT INCLUDE PLANS FOR A JOINT VENTURE TO MANUFACTURE DIGITAL SWITCHES IN CHINA IT NOW HAS MORE THAN 400 EMPLOYEES IN THE COUNTRY AND IS FAST ADDING ADDITIONAL STAFF SO THAT IT CAN RESPOND QUICKLY WHEN PROBLEMS DO ARISE IT DOESN'T PLAN TO MAKE THE SAME MISTAKES TWICE MR CARTER SAYS AT&T WAS FORTUNATE TO HAVE RECOGNIZED ITS ERRORS WHEN IT DID THERE'S STILL A POSSIBILITY OF RECOUPING IN A MAJOR WAY HE SAYS HAD WE WAITED MUCH LONGER FORGET IT WE DEFINITELY WOULD HAVE MISSED OUT MR SMITH IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HONG KONG BUREAU 9312100067 931210 FORD PLANS CAPACITY BOOST FOR MUSTANG FIRM SEES STRONG DEMAND FOR REDESIGNED CAR 53000 ORDERS RECEIVED BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO HAS TENTATIVELY DECIDED TO BOOST PRODUCTION CAPACITY FOR ITS REDESIGNED MUSTANG BY MORE THAN 10 BECAUSE OF STRONG DEMAND FOR THE SPORTS CAR WHICH WENT ON SALE YESTERDAY A COMPANY SPOKESMAN SAID FORD IS CONVINCED IT CAN SELL THE EXTRA MUSTANGS AND THE ONLY QUESTION IS WHETHER IT CAN OBTAIN ENOUGH COMPONENTS FROM SUPPLIERS TO SUPPORT THE PROPOSED PRODUCTION INCREASE A DECISION WILL BE MADE MONDAY HE SAID SEPARATELY FORD NAMED EDSEL B FORD II A VICE PRESIDENT A SIGN THAT THE COMPANY MAY BE GROOMING HIM FOR A TOP POSITION FORD HAS RECEIVED 53000 ORDERS FOR THE HIGHLY TOUTED MUSTANG WHICH WAS NAMED CAR OF THE YEAR THIS WEEK BY MOTOR TREND MAGAZINE DEALERS SAY CUSTOMER INTEREST IN THE MUSTANG IS THE STRONGEST FOR ANY FORD MODEL SINCE THE EXPLORER SPORTUTILITY VEHICLE HIT THE MARKET IN 1990 BOB KARLIN A FORD DEALER IN SANTA MONICA CALIF SAID HE ARRIVED AT WORK AT 745 AM YESTERDAY AND THERE WERE ALREADY 15 PEOPLE IN THE SHOWROOM LOOKING AT A MUSTANG THEY WERE SWARMING ALL OVER THE THING HE SAID FORD'S OFFICIAL SALES TARGET FOR THE MUSTANG IS 140000 CARS A YEAR BUT BY RUNNING ITS DEARBORN MICH ASSEMBLY PLANT OVERTIME FORD CAN PRODUCE AS MANY AS 175000 MUSTANGS A YEAR NOW FORD IS PLANNING CHANGES IN THE PLANT BY APRIL THAT WOULD BOOST ITS OVERTIME CAPACITY TO 198000 CARS A YEAR FORD EXECUTIVES SAY SELLING 200000 CARS IS NO BIG DEAL FOR A MASSMARKET CAR LIKE THE FORD TAURUS WHICH SELLS AT NEARLY TWICE THAT RATE BUT IT'S AN AMBITIOUS SALES TARGET FOR A MUSCLE CAR LIKE THE MUSTANG WHICH ISN'T DESIGNED FOR THE FAMILY MARKET STILL FORD EXECUTIVES NOTE THAT THE COMPANY SOLD 209000 MUSTANGS AS RECENTLY AS 1989 FORD'S NEW CHAIRMAN ALEXANDER J TROTMAN WAS INTIMATELY INVOLVED WITH THE DECISION TO REDESIGN THE MUSTANG WHICH IS ONE OF FORD'S MOST STORIED MARQUES FORD IS BANKING THAT IT CAN SELL A NEW MUSTANG TO MANY OF THE SIX MILLION PEOPLE WHO HAVE BOUGHT THE CELEBRATED CAR SINCE THE FIRST VERSION APPEARED IN 1964 FORD HAS TRIED TO LINK THE NEW MUSTANG WITH THE ORIGINAL THROUGH ITS COMMERCIALS AND BY PUTTING THE OLD MUSTANG INSIGNIA ON THE FRONT END OF THE LATEST MODEL THE MUSTANG WILL COMPETE DIRECTLY WITH GENERAL MOTORS CORP'S CHEVROLET CAMARO AND PONTIAC FIREBIRD WHICH WERE REDESIGNED EARLIER THIS YEAR ANALYST CHRISTOPHER CEDERGREN OF AUTOPACIFIC GROUP SAYS THE CAMARO AND FIREBIRD ARE GOOD CARS BUT THE MUSTANG HAS BETTER NAME RECOGNITION AND WILL APPEAL MORE TO OLDER BUYERS THE MUSTANG HAS A STARTING PRICE OF LESS THAN 14000 ALTHOUGH SOME WELLEQUIPPED MODELS WILL COST MORE THAN 20000 FORD WILL COMPETE AGAINST A VARIETY OF JAPANESE SPORTS CARS WHERE IT SHOULD HAVE A BIG PRICE ADVANTAGE ACCORDING TO MR CEDERGREN THE JAPANESE HAVE DRAMATICALLY INCREASED THE PRICES ON THEIR SPORTS CARS BECAUSE THEY'RE ALL BUILT IN JAPAN AND FULLY EXPOSED TO THE HIGH VALUE OF THE YEN HE SAID IN ADDITION HE SAID THE JAPANESE HAVE CHOSEN TO USE MOST OF THEIR MARKETING DOLLARS THIS YEAR TO SUPPORT THEIR AMERICANBUILT FAMILY SEDANS WHICH CREATES A BIG OPPORTUNITY FOR THE MUSTANG 9312100066 931210 WHAT'S NEWS BUSINESS AND FINANCE PARAMOUNT WAS TOLD BY THE DELAWARE SUPREME COURT TO CONSIDER QVC'S 101 BILLION OFFER ON AN EQUAL BASIS WITH VIACOM'S FRIENDLY BID UPHOLDING A LOWER COURT RULING THE THREEJUDGE PANEL REBUKED PARAMOUNT'S DIRECTORS FOR IGNORING UNWELCOME SUITOR QVC IN FAVOR OF A LOWER OFFER FROM VIACOM WHICH IS NOW EXPECTED TO INCREASE ITS BID TRADERS WATCHED THE HEARING LIVE ON TV WITH PARAMOUNT'S STOCK REACTING TO DEVELOPMENTS FROM THE COURTROOM US AIRCRAFT MAKERS SOUGHT TO POSTPONE DISCUSSIONS OF SUBSIDIES TO CIVIL PLANE MAKERS A CONTENTIOUS ISSUE IN THE WORLD TRADE TALKS THE FIRMS ARE CONCERNED THAT CURRENT TALKS COULD UNDERMINE A DEAL LIMITING SUBSIDIES FOR EUROPE'S AIRBUS CONSORTIUM PRODUCER PRICES WERE UNCHANGED IN NOVEMBER A SIGN THAT INFLATION STILL ISN'T A PROBLEM DESPITE INCREASED ECONOMIC ACTIVITY PRICES FELL 02 IN OCTOBER AND ROSE 02 IN SEPTEMBER MOST MIDSIZE MANUFACTURERS INCREASED SALES IN EACH OF THE PAST THREE MONTHS AND A GROWING NUMBER EXPECT A BROAD ECONOMIC RECOVERY IN THE SECOND HALF OF NEXT YEAR A SURVEY SAID NYNEX PLANS TO BECOME THE FIRST BABY BELL TO OFFER ONLINE YELLOW PAGES LISTINGS JOINING WITH PRODIGY IN A SERVICE THAT COULD GO NATIONAL FORD TENTATIVELY DECIDED TO BOOST PRODUCTION CAPACITY FOR ITS REDESIGNED MUSTANG BY MORE THAN 10 BECAUSE OF STRONG DEMAND FOR THE SPORTS CAR FORD NAMED EDSEL FORD II A VICE PRESIDENT A SIGN THAT FORD MAY BE GROOMING HIM FOR A TOP POSITION BORDEN'S CHAIRMAN AND CEO RESIGNED AMID GROWING CRITICISM OF HIS EFFORTS TO TURN AROUND THE FOOD AND HOUSEHOLDPRODUCTS CONCERN SALES OF NEW STOCKS AND BONDS IN 1993 ARE ABOUT TO HIT THE 1 TRILLION MARK EITHER TODAY OR MONDAY THE FIRST TIME ANNUAL NEWISSUE VOLUME WILL TOP THE BILLIONDOLLAR LEVEL CITIBANK IS ELIMINATING FEES ON A THIRD OF ITS 20 MILLION US CREDIT CARDS TO HELP SHORE UP MARKET SHARE TOKYO STOCK PRICES JUMPED 34 HELPED BY POLITICAL JAWBONING AND AN IMPORTANT STOCKFUTURES EXPIRATION BROWNINGFERRIS INTENDS TO BOOST CAPITAL SPENDING 23 IN FISCAL 1994 TO 962 MILLION IN A BID FOR MARKET SHARE IN THE SLOW TRASHHAULING BUSINESS BRAZIL'S PRESIDENT SUSPENDED A BIG TENDER OFFER FOR PHONE SWITCHING EQUIPMENT RAISING NEW QUESTIONS ABOUT THE COUNTRY'S WILLINGNESS TO OPEN ITS TELECOMMUNICATIONS MARKET MEDTRONIC RECEIVED FDA APPROVAL OF AN ELECTRICAL LEAD SYSTEM FOR ITS HEART DEFIBRILLATOR THE CLEARANCE HELPS SET THE STAGE FOR A BATTLE OVER CONTROL OF THE FASTGROWING BUSINESS SOUTHERN PACIFIC RAIL PLANS A 450 MILLION PUBLIC OFFERING AND ANNOUNCED A 240 MILLION PROPERTY SALE THE VIDEOGAME INDUSTRY'S PROPOSAL FOR SELFPOLICING SEX AND VIOLENCE IN ITS PRODUCTS DIDN'T SEEM TO IMPRESS A CONGRESSIONAL COMMITTEE VOLKSWAGEN'S CHAIRMAN CLARIFIED THE AUTO MAKER'S FORECAST FOR 1993 SAYING THE CAR MAKER IS LIKELY TO POST A CONSOLIDATED LOSS OF 135 BILLION HE SAID VW PLANS TO HOLD ITS DIVIDEND STEADY AT TWO MARKS A SHARE WORDPERFECT SAID ITS PRESIDENT AND CHIEF EXECUTIVE ALAN ASHTON WILL STEP DOWN JAN 1 AS PART OF MANAGEMENT CHANGES MEANT TO GET NEW PEOPLE INTO THE CLOSELYHELD SOFTWARE COMPANY BONDS LEHMAN BROTHERS TREASURY INDEX 559577 UP 615 COMMODITIES OIL 1463 A BARREL UP FOUR CENTS DOW JONES FUTURES INDEX 13821 OFF 037 SPOT INDEX 12462 UP 036 DOLLAR 10865 YEN OFF 023 17047 MARKS OFF 00028 9312100065 931210 MARKETING BRIEF GRUPO TELEVISA SA CONCERN TO FORGO VENTURE WITH TELECOMMUNICATIONS MEXICO'S GRUPO TELEVISA SA SAID IT WON'T PROCEED WITH ITS PROPOSED JOINT VENTURES WITH CABLE GIANT TELECOMMUNICATIONS INC IN MEXICO AND OTHER TERRITORIES AS REPORTED IN MAY THE COMPANIES SAID THEY WOULD JOIN TO DEVELOP AND EXPAND CABLE AND PAY TELEVISION THROUGHOUT MEXICO AND OTHER LATIN AMERICAN COUNTRIES THROUGH A NEW JOINTLY OWNED MEXICAN COMPANY TERMS ALSO CALLED FOR DENVERBASED TELECOMMUNICATIONS TO BUY A 49 INTEREST IN GRUPO TELEVISA'S CABLE UNIT A TCI SPOKESWOMAN SAID THE PROPOSED ACQUISITION OF TCI BY BELL ATLANTIC CORP CREATES UNCERTAINTIES THAT NEED TO BE FURTHER EVALUATED IN A NEWS RELEASE GRUPO TELEVISA SAID THE COMPANIES CONCLUDED THAT IT WAS IN EVERYONE'S BEST INTERESTS TO TERMINATE THE PROPOSED ARRANGEMENTS IN VIEW OF BOTH PARTIES' LONGTERM OBJECTIVES 9312100063 931210 MARKETING BRIEF NOSTALGIA NETWORK INC HOLDERS ADVISED TO REJECT TENDER FOR LIKELY HIGHER BID NOSTALGIA NETWORK INC RECOMMENDED THAT ITS SHAREHOLDERS REJECT A 296 MILLION TENDER OFFER FROM INTERNATIONAL FAMILY ENTERTAINMENT INC SAYING A HIGHER OFFER COULD BE POSSIBLE INTERNATIONAL FAMILY THE MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON DIRECTLY OFFERED TO ACQUIRE NOSTALGIA SHARES FROM SHAREHOLDERS FOR 2 A COMMON SHARE AND 200 A PREFERRED SHARE ON NOV 24 AFTER IT LAUNCHED ITS OFFER THE VIRGINIA BEACH VA COMPANY SAID IT BEGAN DISCUSSIONS WITH A SPECIAL COMMITTEE OF NOSTALGIA'S BOARD ABOUT THE POSSIBILITY OF BOOSTING ITS BID TO 3 FOR EACH COMMON SHARE AND 300 FOR EACH PREFERRED SHARE OR A TOTAL OF 44 MILLION A SPOKESMAN FOR INTERNATIONAL FAMILY SAID THE DISCUSSIONS WERE STILL ALIVE BUT HAD NO FURTHER COMMENT NOSTALGIA IS A BASICCABLE CHANNEL BASED IN LOS ANGELES WITH PROGRAMMING AIMED AT VIEWERS AGE 45 AND OLDER 9312100062 931210 PARAMOUNT IS TOLD BY COURT TO CONSIDER OFFER BY QVC TAKEOVER BATTLE IS THROWN WIDE OPEN BY DECISION NEW VIACOM BID LIKELY BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL THE DELAWARE SUPREME COURT UPHELD A RESOUNDING LOWER COURT DEFEAT FOR PARAMOUNT COMMUNICATIONS INC FORCING PARAMOUNT TO CONSIDER QVC NETWORK INC'S 101 BILLION OFFER ON AN EQUAL BASIS WITH VIACOM INC'S FRIENDLY BID THE THREEJUDGE PANEL YESTERDAY STRONGLY REBUKED PARAMOUNT'S DIRECTORS FOR FAILING SHAREHOLDERS BY IGNORING UNWELCOME SUITOR QVC IN FAVOR OF A LOWERPRICED DEAL WITH VIACOM CURRENTLY VALUED AT 95 BILLION THE UNANIMOUS DECISION THREW THE THREEMONTHOLD TAKEOVER BATTLE WIDE OPEN FOR THE MOMENT QVC HAS EMERGED WITH THE UPPER HAND BECAUSE ITS OFFER IS HIGHER BUT SOME OBSERVERS BELIEVE VIACOM MAY COME BACK WITH A HIGHER OFFER TO REGAIN MOMENTUM AFTER THE COURT DEFEAT THE RULING ALSO APPEARS TO SCALE BACK SOME OF THE FREEDOM GIVEN TO CORPORATE BOARDS TO PURSUE LONGTERM STRATEGIES AWARDED BY A 1989 DELAWARE SUPREME COURT DECISION INVOLVING TIME INC IN THAT CASE THE COURT ALLOWED TIME TO PROCEED WITH AN ACQUISITION OF WARNER COMMUNICATIONS INC EVEN THOUGH PARAMOUNT HAD MADE A 200ASHARE OFFER FOR TIME THE COURT INDICATED YESTERDAY THAT THE TIME WARNER RULING DIDN'T APPLY NOW BECAUSE PARAMOUNT WAS SELLING CONTROL TO VIACOM'S CHAIRMAN SUMNER REDSTONE JOHN COFFEE LAW PROFESSOR AT COLUMBIA UNIVERSITY SAID THE DECISION TRIMS BACK THE SCOPE OF TIME WARNER IN A 12PAGE ORDER WHICH HE READ FROM THE BENCH SHORTLY AFTER 4 PM CHIEF JUSTICE E NORMAN VEASEY SAID THAT BECAUSE PARAMOUNT DIRECTORS AGREED TO SELL CONTROL TO VIACOM ON SEPT 12 THEY ERRED BY FAILING TO CONSIDER OTHER OFFERS BECAUSE THEY HAD A DUTY TO CONTINUE THEIR SEARCH FOR THE BEST VALUE AVAILABLE TO SHAREHOLDERS THE RULING SENT THE TAKEOVER BATTLE BACK TO THE LOWER DELAWARE CHANCERY COURT WHERE VICE CHANCELLOR JACK JACOBS MUST NOW INSTRUCT THE PARAMOUNT BOARD HOW TO COMPLY IT WASN'T CLEAR HOW MUCH LATITUDE HE WOULD GIVE THE BOARD TO SET UP FAIR BIDDING PROCEDURES PARAMOUNT CHAIRMAN MARTIN DAVIS IS EXPECTED TO ATTEMPT TO KEEP CONTROL OF THE BIDDING PROCESS AT A PARAMOUNT BOARD MEETING MONDAY ALTHOUGH SOME INVESTMENT BANKERS HAVE SPECULATED THAT PARAMOUNT'S INDEPENDENT DIRECTORS MIGHT CREATE A SPECIAL COMMITTEE TO CONSIDER THE BIDS MR DAVIS IS ARGUING THAT THAT WON'T BE NECESSARY ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY IN A STATEMENT PARAMOUNT SAID THE COURT'S DECISION THAT A CHANGE OF CONTROL IS A SALE HAS IN OUR VIEW EXPANDED EXISTING LAW WE WILL OF COURSE PROCEED TO LIVE UP TO THE SPIRIT AND LETTER OF THE DECISION WITH THAT IN MIND WE WILL PROMPTLY ESTABLISH PROCEDURES APPLICABLE TO ALL BIDDERS FOR AN ORDERLY AND FAIR PROCESS QVC CHAIRMAN BARRY DILLER SAID HE IS DELIGHTED WITH THE RULING ALL OF THIS COULD HAVE BEEN AVOIDED HAD PARAMOUNT DONE THE RIGHT THING FROM THE BEGINNING NEVERTHELESS WE REMAIN ENTHUSIASTIC A VIACOM SPOKESMAN SAID THE COMPANY IS ANALYZING THE COURT'S DECISION THE LOWER COURT JUDGE JACK JACOBS HAD RESERVED MOST OF HIS CRITICISM OF THE PARAMOUNT DIRECTORS FOR THEIR CONDUCT AT A SINGLE MEETING NOV 15 WHEN THEY FAILED TO SEEK MORE INFORMATION ABOUT A NEW 90ASHARE QVC BID PARAMOUNT HAD ARGUED THAT ITS CONTRACT WITH VIACOM BARRED IT FROM TALKING WITH QVC AS LONG AS QVC'S BID WAS SUBJECT TO FINANCING AND OTHER CONDITIONS BUT THE SUPREME COURT'S JUDGE VEASEY CRITICIZED THE BOARD FOR ITS CONDUCT AT AN EARLIER MEETING ON OCT 24 WHEN PARAMOUNT NEGOTIATED A REVISED MERGER AGREEMENT WITH VIACOM AT A HIGHER PRICE THAT MATCHED QVC'S ORIGINAL 80ASHARE BID HE SAID PARAMOUNT SHOULD HAVE EVALUATED QVC'S BID MORE THOROUGHLY AT THAT POINT JUDGE VEASEY ALSO SAID THE SOCALLED NOSHOP CLAUSE IN THE PARAMOUNTVIACOM PACT BARRING TALKS WITH A BIDDER WHOSE OFFER WAS SUBJECT TO FINANCING PREVENTED THE DIRECTORS FROM FULFILLING THEIR FIDUCIARY DUTY TO SEEK THE BEST VALUE AND THE JUDGE ALSO UPHELD THE LOWER COURT'S INVALIDATION OF A SOCALLED LOCKUP OPTION AGREEMENT ALLOWING VIACOM TO BUY 237 MILLION SHARES OF PARAMOUNT STOCK AT 6914 A SHARE IF ANOTHER BIDDER BOUGHT PARAMOUNT AT A HIGHER PRICE WHICH WOULD COST THE COMPETING SUITOR 360 MILLION EXTRA HE ALSO SAID HE WOULD ALSO HAVE INVALIDATED A COMPANION 100 MILLION BREAKUP FEE PAYABLE TO VIACOM IF IT WERE OUTBID BUT QVC DIDN'T EVEN ASK FOR THAT BOTH FEATURES HE SAID DISCOURAGED RIVAL BIDS IN VIOLATION OF THE DIRECTORS' DUTIES THE COURT RULING FOLLOWED AN UNUSUAL TWOANDAHALFHOUR HEARING THAT WAS TELEVISED ON TWO NATIONAL CABLETV CHANNELS RIVETING WALL STREET'S LEGIONS OF TAKEOVER STOCK TRADERS BASED ON THE TENOR OF QUESTIONS CRITICAL OF PARAMOUNT DURING THE HEARING PARAMOUNT'S STOCK PRICE ROSE TO 82 A SHARE UP 275 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BOTH BIDS OFFER CASH FOR 51 OF PARAMOUNT STOCK AND A PACKAGE OF SECURITIES FOR THE REST QVC'S BID IS CURRENTLY VALUED AT 8431 A SHARE WHILE VIACOM'S IS 7922 AT ONE POINT NEAR THE END OF THE HEARING JUSTICE ANDREW GT MOORE II ASKED BARRY OSTRAGER THE PARAMOUNT LAWYER WHY PARAMOUNT DIRECTORS WEREN'T TOLD THAT PARAMOUNT'S INVESTMENT BANKER BELIEVED THAT QVC COULD GET FINANCING FOR ITS OFFER AT THE NOV 15 BOARD MEETING WHEN MR OSTRAGER RESPONDED THAT THE DIRECTORS HAD BEEN TOLD JUSTICE MOORE ASKED WHERE IS THAT IN THE RECORD AND HE REPEATED THE SAME QUESTION THREE MORE TIMES WHEN MR OSTRAGER COULDN'T CITE SPECIFICS IN THE VOLUMINOUS COURT DOCUMENTS AT TIMES THE JUSTICES PELTED MR OSTRAGER WITH SO MANY HOSTILE QUESTIONS THAT HE COULDN'T SEEM TO FINISH ANY OF HIS ANSWERS IN ANOTHER SHARP EXCHANGE MR OSTRAGER SAID IN THE REAL WORLD THE BOARD RESPONDED IN GOOD FAITH TO THE QVC BID AND JUSTICE MOORE SAID ACIDLY I THINK THIS COURT IS AWARE OF WHAT THE REALWORLD REALITIES ARE JUDGE VEASEY CONCLUDED THAT PARAMOUNT WAS SELLING CONTROL OF THE COMPANY AND THUS HAD THE DUTY TO GET THE BEST PRICE BECAUSE VIACOM'S CONTROLLING SHAREHOLDER MR REDSTONE WOULD END UP WITH 70 OF THE VOTING STOCK AND 39 OF THE EQUITY OF A MERGED PARAMOUNT VIACOM THAT WOULD GIVE MR REDSTONE THE VOTING POWER TO CAUSE A BREAKUP OF THE COMPANY TO CASH OUT THE MINORITY STOCKHOLDERS OR TO ALTER MATERIALLY THE EQUITY INTEREST OF THE MINORITY PUBLIC SHAREHOLDERS HIS RULING SAID REGARDLESS OF THE PARAMOUNT DIRECTORS' VISION OF A LONGTERM STRATEGIC ALLIANCE WITH VIACOM HE ADDED ONCE CONTROL PASSES TO REDSTONE HE HAS THE POWER TO ALTER THAT VISION PARAMOUNT'S ADVISERS THE INVESTMENT BANKING FIRM OF LAZARD FRERES & CO AND THE LAW FIRM OF SIMPSON THACHER & BARTLETT PLANNED MEETINGS WITH MANAGEMENT YESTERDAY AND TODAY TO PICK UP THE PIECES AND CONSIDER POSSIBLE NEW BIDDING PROCEDURES THE GROUP IS ALSO EXPECTED TO STUDY HOW TRADING IN VIACOM STOCK HAS BEEN AFFECTED BY HEAVY PURCHASES IN SEPTEMBER AND OCTOBER BY WMS INDUSTRIES INC A PINBALL AND VIDEOARCADE GAME COMPANY OF WHICH MR REDSTONE OWNS 249 TWO OTHER COMPANIES WITH AN ACTIVE INTEREST IN THAT SUBJECT ARE NYNEX CORP AND BLOCKBUSTER ENTERTAINMENT CORP WHICH AGREED TO INVEST A TOTAL OF 18 BILLION IN VIACOM CONVERTIBLE SECURITIES FOR THE PARAMOUNT BID AROUND THE SAME TIME THAT THE WMS PURCHASES MAY HAVE BEEN DRIVING UP THE PRICE OF VIACOM'S COMMON SHARES 9312100061 931210 ABREAST OF THE MARKET STOCKS DECLINE TO 372978 HALTING RALLY AS TECHNOLOGY ISSUES TUMBLE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK TUMBLING PRICES IN THE TECHNOLOGY GROUP UNNERVED INVESTORS PULLING STOCK MARKETS LOWER A DISAPPOINTING READING ON BUSINESS IN THE SEMICONDUCTOR INDUSTRY SENT CHIPMAKERS' SHARES DOWN SHARPLY THAT SELLING SPREAD TO OTHER COMPUTERRELATED ISSUES EARLY STRENGTH IN ECONOMICALLY SENSITIVE STOCKS WHICH LIFTED THE DOW JONES INDUSTRIAL AVERAGE INTO RECORD TERRITORY INTRADAY EVAPORATED AS TECHNOLOGY LOSSES MOUNTED THE INDUSTRIAL AVERAGE REVERSED COURSE TO CLOSE WITH A LOSS OF 475 OR 013 AT 372978 THE DROP CUT OFF A SEVENSESSION WINNING STREAK FOR THE AVERAGE WHICH SET BACKTOBACK HIGHS TUESDAY AND WEDNESDAY BROADBASED INDEXES THAT ARE DOMINATED BY NEW YORK STOCK EXCHANGE ISSUES FELL FURTHER THAN THE DOW INDUSTRIALS BAROMETERS THAT MEASURE THE TECHNOLOGYWEIGHTED NASDAQ STOCK MARKET TUMBLED THE NASDAQ COMPOSITE INDEX LOST 640 OR 083 TO 76149 DECLINING ISSUES OUTPACED ADVANCERS ABOUT 1157 TO 889 ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE EXCHANGE EASED TO 2831 MILLION SHARES FROM 3125 MILLION WEDNESDAY PARAMOUNT COMMUNICATIONS JUMPED 2 3/4 TO 82 LATE IN THE DAY THE DELAWARE SUPREME COURT REFUSED TO OVERTURN A LOWER COURT'S RULING THAT HAS BLOCKED PARAMOUNT'S MERGER WITH VIACOM THE MOVE COULD SET OFF A NEW ROUND OF BIDDING FOR THE NEW YORK MEDIA COMPANY WHICH IS ALSO BEING PURSUED BY QVC NETWORK VIACOM SHARES WERE UNCHANGED AT 49 ON THE AMERICAN STOCK EXCHANGE QVC LOST 1 1/8 TO 43 5/8 ON NASDAQ BATTERING THE CHIP STOCKS WAS A WEAKERTHANEXPECTED READING FROM THE SEMICONDUCTOR INDUSTRY ASSOCIATION ON ITS SOCALLED BOOKTOBILL RATIO A MEASURE OF ORDERS IN THE INDUSTRY IT SLIPPED TO 099 LAST MONTH FROM 100 IN OCTOBER ANALYSTS EXPECTED A READING OF 102 ACCORDING TO A DOW JONES NEWS SERVICE SURVEY ON NASDAQ INTEL DROPPED 1 1/2 TO 58 WHILE APPLIED MATERIALS LOST 1 1/8 TO 34 IN BIG BOARD TRADING MOTOROLA TUMBLED 2 7/8 TO 91 TEXAS INSTRUMENTS SKIDDED 3 1/8 TO 60 3/8 AND ADVANCED MICRO DEVICES EASED 1/2 TO 17 5/8 NATIONAL SEMICONDUCTOR EASED 1/8 TO 14 3/4 THE COMPANY IN SANTA CLARA CALIF SAID ITS BOOKINGS HAVE BEEN WEAK BUT SAID ITS EARNINGS FOR THE SECOND QUARTER ENDED LAST MONTH ROSE TO 46 CENTS A SHARE UP FROM 14 CENTS BEFORE EXTRAORDINARY GAINS A YEAREARLIER NOVELL PLUMMETED 3 5/8 TO 19 7/8 ON NASDAQ AFTER LEHMAN BROTHERS ANALYST DAVID READERMAN CUT A RATING ON THE PROVO UTAH COMPUTERNETWORKING PRODUCTS COMPANY TO NEUTRAL FROM OUTPERFORM NOVELL POSTED SLIGHTLY LOWER EARNINGS WEDNESDAY XEROX CONTINUED TO RALLY FOLLOWING WEDNESDAY'S NEWS THAT THE STAMFORD CONN COMPANY WILL TAKE AGGRESSIVE COSTCUTTING ACTIONS THAT INCLUDE THE ELIMINATION OF 10 OF ITS WORK FORCE ITS SHARES ADDED 3 1/8 TO 89 1/2 AFTER CLIMBING 5 5/8 WEDNESDAY LOTUS DEVELOPMENT BUCKED THE TREND IN TECHNOLOGY ADVANCING 7/8 TO 52 5/8 ON NASDAQ THIS NEWSPAPER REPORTED THAT LOTUS AND INTERNATIONAL BUSINESS MACHINES ENDED A SECRET AGREEMENT IN WHICH LOTUS GAVE IBM A PORTION OF THE REVENUE FROM THE CAMBRIDGE MASS COMPANY'S NOTES SOFTWARE PRODUCT IBM SLIPPED 1/4 TO 53 5/8 WALT DISNEY ADDED 5/8 TO 42 1/4 LEHMAN BROTHERS ANALYST RAYMOND KATZ UPGRADED HIS RATING ON THE BURBANK CALIF COMPANY'S STOCK TO OUTPERFORM FROM NEUTRAL LONG ISLAND LIGHTING DROPPED 1 TO 23 3/4 STANDARD & POOR'S CORP LOWERED RATINGS ON THE HICKSVILLE NY UTILITY'S SENIOR DEBT AND PREFERRED STOCK HANSON'S AMERICAN DEPOSITARY RECEIPTS TOPPED THE BIG BOARD'S MOST ACTIVE LIST ENDING WITH A GAIN OF 1/8 TO 19 3/4 ON 131 MILLION SHARES THE ISSUE HAS BEEN ACTIVE RECENTLY BECAUSE OF TRADING STRATEGIES LINKED TO A DIVIDEND THE UK COMPANY WILL PAY NEXT MONTH TO HOLDERS OF RECORD DEC 13 NEWMONT MINING ADDED 1/8 TO 56 1/8 WHILE SHARES OF ITS 901OWNED UNIT NEWMONT GOLD DROPPED 5/8 TO 44 5/8 AFTER THE COMPANIES AGREED TO MERGE THEIR ASSETS AND OPERATIONS A LABOR DEPARTMENT READING ON PRODUCER PRICES HAD LITTLE AFFECT ON THE MARKET THE PRODUCER PRICE INDEX WAS UNCHANGED LAST MONTH AS EXPECTED ALTHOUGH SOCALLED CORE INFLATION WHICH EXCLUDES FOOD AND ENERGY PRICES ROSE 04 THAT WAS MORE THAN FORECAST 9312100060 931210 BUSINESS BRIEF CENTRAL & SOUTH WEST CORP COURT CLEARS REORGANIZATION OF EL PASO ELECTRIC MERGER CENTRAL & SOUTH WEST CORP SAID A FEDERAL BANKRUPTCY COURT APPROVED EL PASO ELECTRIC CO'S REORGANIZATION PLAN AND 22 BILLION MERGER WITH CENTRAL & SOUTH WEST UNDER THE PLAN WHICH ENABLES THE UTILITY IN DALLAS TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS EL PASO ELECTRIC'S SECURED CREDITORS WILL BE PAID IN FULL CENTRAL & SOUTH WEST SAID UNSECURED CREDITORS WILL RECEIVE A COMBINATION OF DEBT AND CENTRAL & SOUTH WEST COMMON STOCK EQUAL TO 955 OF THEIR CLAIMS WITH CERTAIN EXCEPTIONS PREFERRED SHAREHOLDERS WILL RECEIVE CENTRAL & SOUTH WEST COMMON STOCK OR NEW EL PASO ELECTRIC PREFERRED STOCK VALUED AT ABOUT 82 OF THE LIQUIDATION VALUE OF THE OLD EL PASO ELECTRIC PREFERRED STOCK COMMON SHAREHOLDERS WILL RECEIVE BETWEEN 3 AND 450 A SHARE TO BE PAID IN CENTRAL & SOUTH WEST COMMON STOCK EL PASO ELECTRIC FILED FOR CHAPTER 11 PROTECTION FROM ITS CREDITORS UNDER THE FEDERAL BANKRUPTCY CODE IN JANUARY 1992 9312100059 931210 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY TAKING ON DEBT FIRST KEEP THE BASICS IN MIND BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL NEITHER A BORROWER NOR A LENDER BE WROTE WILLIAM SHAKESPEARE IN HAMLET NEARLY 400 YEARS LATER LIFE ISN'T SO SIMPLE THESE DAYS MANY PEOPLE BORROW SUBSTANTIAL AMOUNTS FOR A HOME A CAR A CHILD'S EDUCATION AND EVEN FOR THINGS LIKE CLOTHING AND FURNITURE LENDERS ARE ONLY TOO EAGER FOR THE BUSINESS MAILBOXES ARE FILLED WITH CREDITCARD SOLICITATIONS WHILE NEWSPAPER ADVERTISEMENTS TRUMPET THE RATES ON CAR LOANS HOMEEQUITY LOANS AND MORTGAGES ALL TOLD INDIVIDUALS AND FAMILIES IN THE US CURRENTLY OWE SOME 38 TRILLION THE LESS DEBT YOU HAVE THE BETTER SAYS WILLIAM G BRENNAN A PARTNER WITH ACCOUNTANTS ERNST & YOUNG BUT AT CERTAIN TIMES IT'S UNAVOIDABLE HOW MUCH IS REASONABLE FINANCIAL ADVISERS GENERALLY AVOID RULES OF THUMB SUCH AS A PERCENTAGE OF MONTHLY INCOME THAT CAN GO TO SERVICE DEBT MOST OF THOSE RATIOS HAVE BEEN DEVELOPED BY MORTGAGE COMPANIES AS A QUICK WAY OF DETERMINING WHO CAN GET FINANCING SAYS JOHN CAMMACK A FINANCIAL PLANNER WITH T ROWE PRICE ASSOCIATES THE BIG BALTIMORE MUTUALFUND COMPANY THEY HAVE VERY LITTLE TO DO WITH WHAT'S APPROPRIATE FOR AN INDIVIDUAL SOME PEOPLE CAN HANDLE PAYMENTS EQUAL TO 50 OF NET INCOME BUT EVEN 10 OF NET INCOME MAY BE TOO MUCH FOR FOLKS WHOSE OTHER EXPENSES ARE HIGH IT'S A MATTER OF HOW MUCH IS COMING IN HOW MUCH IS GOING OUT AND HOW MUCH OF WHAT'S COMING IN COULD BE IN JEOPARDY SAYS MR BRENNAN IT DEPENDS ON YOUR AGE YOUR STATION AND YOUR PROSPECTS FINANCIAL PROFESSIONALS GENERALLY DIVIDE DEBT INTO TWO CATEGORIES SOME REFER TO CONSUMPTION DEBT AND INVESTMENT DEBT OTHERS TO NECESSARY AND UNNECESSARY DEBT SOME LOOK AT WHETHER OR NOT INTEREST IS DEDUCTIBLE FROM THE BORROWER'S INCOME TAXES OR WHETHER THE DEBT IS USED FOR AN ASSET THAT WILL APPRECIATE IN VALUE OR ONE THAT WILL DEPRECIATE BUT WHATEVER TERMS THE PROS USE THE BOTTOM LINE IS THAT THERE'S GOOD DEBT AND BAD DEBT RUNNING UP A LOT OF CREDITCARD DEBT IS ON EVERYBODY'S LIST OF NONOS EVEN AFTER FOUR YEARS OF DECLINING INTEREST RATES THE AVERAGE ON CREDIT CARDS IS CLOSE TO 18 THAT'S MORE THAN TWICE THE GOING RATE ON SOME OTHER TYPES OF LOANS AND THERE'S NO TAX DEDUCTION WHAT'S MORE EASY ACCESS CAN MAKE IT EASY TO OVERSPEND TAKING A LOAN SHOULD BE A CONSCIOUS DECISION SAYS STEVEN ENRIGHT A FINANCIAL PLANNER IN RIVER VALE NJ CREDIT CARDS ARE MORE IMPULSE BUYING BORROWING TO PURCHASE A HOME IS GENERALLY CONSIDERED ALL RIGHT YOU HAVE TO LIVE SOMEWHERE THE THINKING GOES AND EVEN IN TODAY'S DEPRESSED REALESTATE MARKET IT'S REASONABLE TO EXPECT THE VALUE TO APPRECIATE OVER TIME ALTHOUGH FINANCIAL PLANNERS THINK EVERYONE WITH CHILDREN SHOULD BE SAVING FOR COLLEGE THEY USUALLY ACKNOWLEDGE THAT MANY PEOPLE HAVE TO GO INTO DEBT AT LEAST A COLLEGE DIPLOMA IS AN ASSET THAT WILL GENERATE INCOME THEY SAY BEYOND THAT HOWEVER EVEN THE PROS DON'T ALWAYS AGREE SOME ADVOCATE BORROWING TO INVEST IN THE STOCK MARKET FOR INSTANCE WHILE OTHERS SAY IT'S A BAD IDEA THERE ARE THOSE WHO ADVISE CLIENTS TO PAY CASH FOR AUTOMOBILES IF AT ALL POSSIBLE OTHERS RECOMMEND USING DEDUCTIBLE HOMEEQUITY DEBT AND SOME SAY A LOWRATE AUTO LOAN MAY BE JUST FINE AND THERE IS A PLACE FOR CREDIT CARDS WHEN PROPERLY MANAGED THE ACCOMPANYING ARTICLES DISCUSS SOME OF THE MOST IMPORTANT CONSIDERATIONS FOR PEOPLE IN THEIR 20S AND 30S THEIR 40S AND 50S AND THOSE 60 AND OLDER BUT REGARDLESS OF YOUR AGE IT IS IMPORTANT TO BE FAMILIAR WITH THE BASICS OF BORROWING HERE'S A LOOK AT SOME OF THE KEY POINTS CREDIT CARDS CREDIT CARDS CAN BE A BIG CONVENIENCE AS LONG AS YOU CAN PAY THE BILL WHEN IT COMES PROBLEMS START WHEN BALANCES START TO MOUNT AND INTEREST CHARGES ACCRUE WHAT YOU PAY OFF WITHOUT INTEREST IS NOT DEBT SAYS STEVEN B WEINSTEIN NATIONAL DIRECTOR OF PERSONAL FINANCIAL PLANNING FOR ACCOUNTANT FIRM ARTHUR ANDERSEN & CO STILL THERE MAY BE TIMES WHEN CARRYING A BALANCE IS UNAVOIDABLE SO IT IS IMPORTANT TO KNOW THE TERMS OF THE CARDS YOU HAVE SOME FINANCIAL INSTITUTIONS OFFER RATES WELL BELOW THE NATIONAL AVERAGE THERE ALSO ARE FEES AND GRACE PERIODS TO CONTEND WITH SOME ISSUERS DON'T CHARGE INTEREST UNTIL 25 DAYS AFTER BILLING OTHERS START THE METER IMMEDIATELY OR WHEN THE CHARGE IS POSTED YOU SHOULD ALWAYS PAY OFF THE BALANCE AS SOON AS POSSIBLE FINANCIAL PROFESSIONALS GENERALLY RECOMMEND THAT PEOPLE WHO TEND TO CARRY BALANCES ON THEIR CARDS LOOK FOR THE LOWEST RATE AND THAT PEOPLE WHO REGULARLY PAY THEIR BALANCES IN FULL LOOK FOR THE LOWEST ANNUAL FEE CAR LOANS RATES HAVE COME DOWN SIGNIFICANTLY IN THE PAST FEW YEARS AND NOW AVERAGE JUST UNDER 8 FOR A FOURYEAR LOAN STILL THIS CAN BE COSTLY BECAUSE THERE'S NO LONGER A TAX DEDUCTION FOR ANY KIND OF CONSUMER DEBT MANUFACTURERS OFTEN OFFER LOWER RATES ALTHOUGH TAKING ADVANTAGE OF THOSE DEALS CAN MAKE IT MORE DIFFICULT TO NEGOTIATE A BETTER PRICE STEER CLEAR OF THOSE SIXYEAR AND SEVENYEAR CAR LOANS SOME LENDERS OFFER WHILE THE MONTHLY PAYMENTS WILL BE LOWER THAN WITH SHORTERTERM LOANS YOUR PAYMENT BOOK MIGHT WELL OUTLIVE THE CAR MOREOVER YOU'LL END UP PAYING A LOT MORE OVER THE LIFE OF THE LOAN IT'S BETTER TO PAY AN EXTRA 30 A MONTH ON A FOURYEAR LOAN RATHER THAN TAKE A SIX SAYS MR CAMMACK OF T ROWE PRICE YOU CAN SAVE 800 OR 900 IN INTEREST COSTS HOMEEQUITY LOANS INTEREST PAYMENTS ON AS MUCH AS 100000 OF HOMEEQUITY DEBT IN ADDITION TO A MORTGAGE ARE GENERALLY TAXDEDUCTIBLE WITH RATES ON HOMEEQUITY LOANS AND LINES OF CREDIT AVERAGING ABOUT 7 THE AFTERTAX COST FOR MANY PEOPLE IS ABOUT 45 AS A RESULT THESE LOANS CAN BE A RELATIVELY LOWCOST SOURCE OF CASH FOR BUYING A CAR OR FINANCING A CHILD'S EDUCATION SOME FINANCIAL PLANNERS SAY EVERYONE WHO'S ELIGIBLE SHOULD HAVE A HOMEEQUITY LINE OF CREDIT AS PART OF AN EMERGENCY RESERVE MANY FINANCIAL PLANNERS RECOMMEND USING HOMEEQUITY DEBT WHEN PURCHASING A CAR BECAUSE OF ITS TAX DEDUCTIBILITY BUT PAY IT OFF LIKE A CAR LOAN IN FOUR YEARS OR LESS THEY ADD OR YOU COULD END UP WITH A WORTHLESS CAR AND NO HOME RESIST THE TEMPTATION TO USE A HOMEEQUITY LINE LIKE A CHECKING ACCOUNT TO PAY FOR THINGS LIKE CLOTHES AND VACATIONS REMEMBER YOU'RE PUTTING YOUR HOUSE ON THE LINE THAT NEW FUR COAT MAY BE NICE BUT IF YOU CAN'T MAKE THE PAYMENTS YOU COULD FIND YOURSELF HOMELESS HOME MORTGAGES SINCE IT'S UNUSUAL TO BE ABLE TO PAY CASH FOR A HOME MOST PEOPLE HAVE OR HAVE HAD MORTGAGE DEBT INTEREST ON AS MUCH AS 1 MILLION IS DEDUCTIBLE TYPICALLY THERE ARE 15YEAR 20YEAR AND 30YEAR LOANS SOME COME WITH INTEREST RATES THAT ARE FIXED FOR THE LIFE OF THE LOAN OTHERS HAVE ADJUSTABLE RATES WHICH CAN CHANGE AS OFTEN AS EVERY SIX MONTHS OR AS INFREQUENTLY AS EVERY SEVEN YEARS THE CHOICE GENERALLY DEPENDS ON HOW LONG YOU PLAN TO REMAIN IN YOUR HOME AND YOUR TOLERANCE FOR RISK ADJUSTABLERATE LOANS TYPICALLY HAVE LOWER INITIAL INTEREST RATES THAN FIXEDRATE LOANS BUT PAYMENTS ON ADJUSTABLERATE LOANS COULD INCREASE SUBSTANTIALLY IF INFLATION HEATS UP EVEN THEN THOUGH THE ADJUSTABLERATE LOAN COULD STILL BE A BETTER DEAL IF YOU EXPECT TO MOVE IN A FEW YEARS SOME FINANCIAL PROFESSIONALS RECOMMEND PUTTING DOWN AS MUCH AS POSSIBLE AND GETTING THE SHORTESTTERM LOAN YOU CAN AFFORD SHORTERTERM LOANS HAVE BIGGER MONTHLY PAYMENTS BUT RESULT IN BIG INTEREST SAVINGS OVER TIME OTHER EXPERTS SAY TO BORROW AS MUCH AS POSSIBLE FOR AS LONG AS POSSIBLE AND USE THE MONEY YOU SAVE IN LOWER MONTHLY PAYMENTS TO INVEST YOU CAN MAINTAIN AND DEVELOP A DIVERSIFIED INVESTMENT PORTFOLIO THAT OVER THE TERM OF THE LOAN WILL PRODUCE A RETURN THAT EXCEEDS THE COST OF FINANCING SAYS TIM KOCHIS A FINANCIAL PLANNER IN SAN FRANCISCO ANYONE WHO HAS ENOUGH CASH FLOW TO QUALIFY FOR A 15YEAR MORTGAGE PROBABLY SHOULDN'T HAVE ONE TO MAKE THAT STRATEGY SUCCESSFUL HOWEVER REQUIRES THE SELFDISCIPLINE TO ACTUALLY INVEST THE EXTRA CASH IN SOMETHING THAT WILL GENERATE AN AFTERTAX RETURN THAT'S HIGHER THAN THE 45 OR SO AFTERTAX COST OF MANY MORTGAGES NOW AVAILABLE YOU'LL COME OUT BEHIND IF YOU JUST LEAVE IT IN A MONEYMARKET ACCOUNT INVESTMENT DEBT BUYING SECURITIES ON MARGIN OR BORROWING AGAINST THE VALUE OF STOCKS AND BONDS IS AMONG THE MORE CONTROVERSIAL FORMS OF DEBT BECAUSE OF THE RISKS INVOLVED FINANCIAL PROFESSIONALS USUALLY RECOMMEND IT ONLY FOR SOPHISTICATED INVESTORS MARGINTYPE BORROWING IS BY DEFINITION SPECULATIVE SAYS MR WEINSTEIN OF ARTHUR ANDERSEN LEVERAGE CAN BE A POWERFUL TOOL BUT THERE ARE NO GUARANTEES RATES AT BROKERAGE FIRMS ARE NOW IN THE 6 TO 8 RANGE DEPENDING ON THE SIZE OF THE LOAN AND INTEREST CHARGES ARE TAXDEDUCTIBLE TO THE EXTENT THAT THEY ARE OFFSET BY TAXABLE INVESTMENT INCOME GENERALLY AN INVESTOR CAN BORROW UP TO 50 OF THE VALUE OF STOCKS OWNED OR UP TO 90 OF THE VALUE OF BONDS DEPENDING ON THE TYPE OF BOND AND ITS MATURITY BUT PROBLEMS CAN ARISE WHEN THE MARKET VALUE OF THE SECURITIES FALLS BELOW THE LEVEL REQUIRED TO MAINTAIN SUFFICIENT COLLATERAL THE RESULTING MARGIN CALL COULD REQUIRE REPAYMENT OF A SIGNIFICANT PORTION OF THE LOAN WITHIN DAYS OR EVEN HOURS I HAVEN'T RUN INTO THAT MANY PEOPLE WHO ARE THAT SHARP AT INVESTING THAT THEY'RE GOING TO CONSISTENTLY EARN MORE THAN THE INTEREST CHARGES THEY INCUR SAYS MR BRENNAN OF ERNST & YOUNG 9312100058 931210 BUSINESS BRIEF MODINE MANUFACTURING CO CONCERN BUYS PARTNER'S SHARE IN AUSTRIAN JOINT VENTURE MODINE MANUFACTURING CO SAID IT ACQUIRED ITS PARTNER'S 50 STAKE IN AN AUSTRIAN JOINT VENTURE THE VENTURE WAS FORMED IN 1984 BY MODINE OF RACINE WIS AND AUSTRIA METALL AG A MAKER OF METALS AND METAL PRODUCTS THE AUSTRIA WARMETAUSCHER GMBH VENTURE WHICH MAKES ALUMINUM AIRCONDITIONING CONDENSERS AND OIL COOLERS FOR EUROPEAN AUTO MAKERS HAS ABOUT 200 EMPLOYEES AT A PLANT IN THE AUSTRIAN CITY OF BERNDORF TERMS OF THE ACQUISITION WEREN'T DISCLOSED BUT MODINE SAID ANNUALIZED SALES OF THE AWG VENTURE ARE ABOUT 20 MILLION UNDER ACCOUNTING RULES SALES FROM AWG HAVEN'T PREVIOUSLY BEEN REFLECTED IN THE US COMPANY'S FINANCIAL RESULTS BUT NOW WILL BE 9312100057 931210 TECHNOLOGY NYNEX AND PRODIGY TEAM UP ON YELLOW PAGES THAT WILL PROVIDE ONLINE LISTINGS AND ADS BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NYNEX CORP IS SET TO BECOME THE FIRST BABY BELL TO OFFER ONLINE YELLOW PAGES LISTINGS JOINING WITH PRODIGY SERVICES CO IN A SERVICE THAT MAY EVENTUALLY GO NATIONAL NYNEX'S DIRECTORYSERVICES ARM WILL WORK WITH PRODIGY THE ONLINE SERVICE WITH ONE MILLION SUBSCRIBERS TO OFFER ADVERTISERSUPPORTED LISTINGS LATE NEXT YEAR THEIR EFFORT WILL OFFER 17 MILLION NEW YORK AND NEW ENGLAND BUSINESS LISTINGS AS WELL AS DISPLAY ADVERTISING THE NEW SERVICE WOULD ALLOW CONSUMERS WITH A PERSONAL COMPUTER TO SEARCH FOR SAY A RESTAURANT IN NEW YORK CITY BY CUISINE OR LOCATION CUSTOMERS MAY BE ABLE TO SEE MENUS OR DINING ROOMS IN ONLINE PHOTOGRAPHS EVENTUALLY THE SERVICE MAY ALLOW CUSTOMERS TO MAKE RESERVATIONS ONLINE SAYS ROSS GLATZER PRESIDENT OF PRODIGY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO NEWSPAPERS HAD FOUGHT FOR YEARS TO KEEP THE BABY BELLS OUT OF ONLINE SERVICES FEARING A LOSS OF ADVERTISING BUT THEY WERE ULTIMATELY DEFEATED IN A US DISTRICT COURT RULING FAVORING THE BELL COMPANIES IN 1991 STILL UNCERTAIN IS HOW MUCH APPEAL ONLINE LISTINGS WOULD HAVE FOR ATHOME SUBSCRIBERS MOST OF THE 35 MILLION USERS OF HOME COMPUTERS DON'T USE ANY KIND OF ONLINE SERVICES AT ALL IN THE NYNEXPRODIGY EFFORT THE LISTINGS WOULD HAVE LITTLE APPEAL FOR 90 OF THE SUBSCRIBERS BECAUSE ONLY 100000 PRODIGY SUBSCRIBERS LIVE IN NYNEX'S SERVICE AREA BUT PRODIGY IS HOPING THE OTHER BELLS WILL FOLLOW NYNEX'S PATH AND OFFER SIMILAR SERVICES IN THEIR RESPECTIVE REGIONS NYNEX SAID IT PLANS TO LICENSE THE NEW SERVICE'S SOFTWARE TO ANY BABY BELL THAT WANTS IT IF THERE ARE NO TAKERS NYNEX WOULD CONSIDER BECOMING A NATIONAL PROVIDER OF ELECTRONIC YELLOW PAGES SERVICES ON PRODIGY SAYS DONALD MACKENZIE PRESIDENT OF NYNEX INFORMATION RESOURCES CO WHICH IS WORKING WITH PRODIGY BUT HE SAID NYNEX WOULD PREFER THAT THE OTHER BELL COMPANIES DEVELOP SIMILAR SERVICES OF THEIR OWN A NUMBER OF BABY BELLS HAVE ALREADY TAKEN A HARD LOOK AT OFFERING ELECTRONIC YELLOW PAGES AND REJECTED THE IDEA THEIR MARKET RESEARCH HAS SHOWN THAT CONSUMERS AREN'T INTERESTED IN OBTAINING DIRECTORY SERVICES INFORMATION OVER THEIR PERSONAL COMPUTERS VIEWING THE COMPUTER INTERFACE AS UNFRIENDLY AND UNWIELDY FOR SEVERAL MONTHS IN NORTHERN VIRGINIA BELL ATLANTIC CORP HAS BEEN TESTING A FAR MORE ADVANCED INTERACTIVE SERVICE IT USES COMPACTDISK TECHNOLOGY TO DELIVER DIRECTORY LISTINGS TO TV SETS THE TEST FEATURES DISPLAY ADS SOME WITH FULLMOTION VIDEO AND STEREO SOUND AND AN INTERACTIVE MAP OF THE LOCAL SUBWAY SYSTEM THAT CONSUMERS CAN USE TO HELP FIND THEIR WAY TO STORES AND RESTAURANTS FOR THE NEXT PHASE OF THE TRIAL BELL ATLANTIC IS PLANNING TO OFFER THE SERVICE OVER ITS PHONE NETWORK AND LET ADVERTISERS UPDATE THEIR ADS ON A REALTIME BASIS THE SERVICE COULD BE ROLLED OUT COMMERCIALLY IN MAJOR MARKETS AS EARLY AS 1996 THERE ARE A NUMBER OF UNANSWERED QUESTIONS ABOUT WHAT CONSUMERS WANT WE APPLAUD OTHER PUBLISHERS IN PUTTING EXPERIMENTS INTO THE MARKET TO FIND OUT WHAT PEOPLE WANT SAYS PATRICK CANTWELL A VICE PRESIDENT AT BELL ATLANTIC'S YELLOW PAGES UNIT LIKEWISE SOUTHWESTERN BELL CORP ISN'T HANKERING TO GET A PIECE OF ACTION THAT PRODIGY IS PLANNING MAC GESCHWIND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE SOUTHWESTERN BELL PUBLISHING UNIT SAYS HE SEES LITTLE CONSUMER DEMAND FOR ONSCREEN LISTINGS WE DON'T SEE THE YELLOW PAGES PAPER PRODUCT IN DANGER OF BEING REPLACED BY AN ELECTRONIC VERSION ANY TIME SOON HE ADDS BUT THE 9 BILLION YELLOW PAGES MARKET IS FLATTENING OUT A FAR CRY FROM THE HIGHROLLING 1980S WHEN THE MARKET EXPERIENCED DOUBLEDIGIT GROWTH LAST YEAR ADVERTISING WAS ONLY UP ABOUT 15 ACCORDING TO THE KELSEY GROUP INC A PRINCETON NJ FIRM THAT TRACKS THE MARKET THERE IS A RECOGNITION THAT THE MAJOR PUBLISHERS NEED TO TURN TO OTHER DISTRIBUTION SYSTEMS SAYS THE FIRM'S PRESIDENT JOHN KELSEY 9312100056 931210 BUSINESS BRIEF PACTEL CORP UNDERWRITERS USE OPTIONS TO ACQUIRE 85 MILLION SHARES PACTEL CORP SAID THE UNDERWRITERS OF ITS RECENT 138 BILLION INITIAL PUBLIC OFFERING OF 60 MILLION COMMON SHARES EXERCISED AN OPTION TO ACQUIRE AN ADDITIONAL 85 MILLION SHARES THE SAN FRANCISCO COMPANY SAID THE SALE OF THE ADDITIONAL SHARES BRINGS THE TOTAL NUMBER BEING TRADED TO 685 MILLION AND RAISES THE VALUE OF ITS RECENT INITIAL PUBLIC OFFERING TO 157 BILLION PACTEL IS A CELLULAR AND PAGING COMPANY BEING SPUN OFF FROM ITS BABY BELL PARENT PACIFIC TELESIS GROUP PACTEL SAID THE UNDERWRITING GROUP LED BY SALOMON BROTHERS INC AND LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO PURCHASED THE ADDITIONAL STOCK AT 23 EACH THE COMPANY SAID THE SHARES WILL BE USED BY THE UNDERWRITERS TO COVER OVERALLOTMENTS IN CONNECTION WITH THE DEC 2 PUBLIC OFFERING PACTEL'S SHARES CLOSED AT 26 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9312100055 931210 INTERNATIONAL RUSSIA'S ELECTIONS SET STAGE FOR CHANGE PLENTY REMAINS TO BE DECIDED AFTER SUNDAY'S VOTE BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S ELECTIONS SUNDAY SET ITS DEMOCRATIC HOPES BACK ON TRACK BUT IT'S CLEAR THAT THE BIRTH OF RUSSIAN DEMOCRACY WILL BE A ROUGH AND LENGTHY PERFORMANCE AS WELL AS ONE OF THE GIDDIEST IMPROVISATIONAL POLITICAL DRAMAS OF OUR TIME RUSSIANS WILL CHOOSE THEIR FIRST POSTCOMMUNIST LEGISLATURE AND VOTE ON A NEW CONSTITUTION MAYBE THAT SOUNDS SIMPLE BUT RUSSIA'S 107 MILLION VOTERS MOST OF WHOM FOR MOST OF THEIR LIVES HAVE HAD NO CHOICE BUT THE SOVIET COMMUNIST PARTY NOW FACE A CHOICE AMONG 13 STILLCOALESCING PARTIES RANGING FROM PROREFORM TO COMMUNIST TO ANGRY NATIONALIST TO LARGE AND SOMETIMES OVERLAPPING SPECIAL INTERESTS SUCH AS FARMERS AND WOMEN THE PARTIES ARE CONTENDING FOR TWO CHAMBERS OF A LEGISLATURE WITH THREE DIFFERENT TYPES OF SEATS EVEN VOTERS WHO HAVE IDENTIFIED THEIR FAVORITE CANDIDATE DON'T KNOW WHAT ELSE THEY'RE SAYING YES TO NO ONE KNOWS YET WHAT INSTITUTIONAL FRAMEWORK RUSSIA'S NEW LAWMAKERS WILL INHABIT THE NEW CONSTITUTION PROPOSED BY PRESIDENT BORIS YELTSIN WOULD PROVIDE THE JOB DEFINITIONS FOR FUTURE LEGISLATORS BUT ONLY AFTER SUNDAY'S BALLOTS ARE ADDED UP WILL VOTERS KNOW WHETHER THEY HAVE COLLECTIVELY APPROVED OR REJECTED THE CONSTITUTION EVEN IF THE NEW CONSTITUTION WINS A YES VOTE ITS APPLICATIONS ARE FAR FROM CLEAR AN UNWIELDY DOCUMENT RUNNING TO 137 ARTICLES AND NINE TRANSITIONAL PROVISIONS THIS CHARTER AUGURS PLENTY OF LEGISLATIVE CONFUSION WORLD CHESS CHAMPION GARY KASPAROV AN ARDENT SUPPORTER OF FREEMARKET DEMOCRATIC REFORMS LAST MONTH DISMISSED THE PROPOSED CONSTITUTION AS TEMPORARY A STOPGAP UNTIL A FEW YEARS FROM NOW WHEN FURTHER REFORM MIGHT YIELD A MORE VIABLE CHARTER THE CONSTITUTION CONTAINS CLAUSES PROTECTING SUCH RIGHTS AS PRIVATE PROPERTY AND THE PRESUMPTION OF INNOCENCE BUT IT ALSO PROMISES FOR EXAMPLE AN EXTENSIVE SOCIAL SAFETY NET THAT RUSSIA FOR SOME TIME TO COME CANNOT REALISTICALLY AFFORD BEYOND THAT THE CREATION OF THIS CONSTITUTION HAS REFLECTED HEAVILY THE UPS AND DOWNS OF RECENT RUSSIAN POLITICS THIS SUMMER WHEN MR YELTSIN STILL WAS SEEKING REGIONAL SUPPORT IN HIS FIGHT AGAINST THE OLD PARLIAMENT HE OFFERED TO CONCEDE A BIG CHUNK OF CENTRAL AUTHORITY TO REGIONAL GOVERNMENTS THIS FALL WITH PARLIAMENT OUT OF THE WAY MR YELTSIN TOOK BACK MUCH OF HIS PROPOSED CONCESSION THE RESULT IS A CHARTER THAT WOULD LEAVE MANY REGIONAL LEADERS OUT OF SORTS WITH THE NEW SYSTEM THAT COULD AGGRAVATE THE EXISTING THREAT TO THE RUSSIAN UNION WHICH ALREADY HAS SUFFERED SUCH BLOWS AS THE BREAKAWAY OF THE REPUBLIC OF CHECHENYA AND THE ATTEMPTED DECLARATION OF AN INDEPENDENT STATE IN MR YELTSIN'S NATIVE HAUNTS THE URALS IF VOTERS REJECT THE PROPOSED CONSTITUTION A COMPLETE INSTITUTIONAL FOG SETS IN THE PRESUMPTION HERE IS THAT THE NEWLY ELECTED LAWMAKERS IN SOME YETUNDEFINED COLLABORATION WITH MR YELTSIN WOULD THEN CONCOCT A CHARTER THAT WILL AMONG OTHER THINGS DEFINE THEIR OWN JOBS ALL THIS HAZE HANGS OVER A HECTIC TRANSITION PERIOD THAT BEGAN LESS THAN THREE MONTHS AGO WITH MR YELTSIN DISSOLVING AND THEN SHELLING THE PREVIOUS SOVIETINSTALLED PARLIAMENT AND SCHEDULING BOTH EARLY PARLIAMENTARY ELECTIONS AND A CONSTITUTIONAL REFERENDUM THE SPEED OF THESE DEVELOPMENTS HAS OFFERED REASSURANCE THAT MR YELTSIN'S AIM IN CRUMPLING THE OLD PARLIAMENT WAS NOT TO SET UP A PRESIDENTIAL DICTATORSHIP BUT THE HASTE ALSO HAS PRODUCED POLITICAL BEDLAM WITH POLITICIANS UNTUTORED IN DEMOCRATIC TACTICS SCRAMBLING IN JUST TWO MONTHS TO FORM PARTIES FIGURE OUT PLATFORMS AND RUN CAMPAIGNS RUSSIANS WILL ELECT A TWOCHAMBER LEGISLATURE CALLED THE FEDERAL ASSEMBLY EACH OF 89 REGIONS EXCEPT BREAKAWAY CHECHENYA WHICH REFUSES TO PARTICIPATE WILL DIRECTLY ELECT TWO REPRESENTATIVES TO THE WEAKER UPPER HOUSE THE FEDERATION COUNCIL IN THE MORE POWERFUL LOWER HOUSE OR STATE DUMA HALF THE SEATS WILL BE FILLED BY DIRECTLY ELECTED DEPUTIES THE OTHER 225 SEATS IN THE STATE DUMA WILL GO TO POLITICAL PARTY BLOCKS PARCELED OUT ACCORDING TO THE FRACTION OF THE VOTE CAST FOR A GIVEN POLITICAL PARTY TO QUALIFY FOR THESE BLOCK SEATS A PARTY MUST WIN AT LEAST 5 OF THE VOTE CANDIDATES WHO LOSE IN A RACE FOR A DIRECTMANDATE SEAT IN THE LOWER HOUSE CAN STILL BE ELECTED VIA THE PARTY LISTS AND ALTHOUGH THE PROPOSED CONSTITUTION SETS OUT A SYSTEM IN WHICH LAWMAKERS SERVE FOURYEAR TERMS AND WORK SEPARATELY FROM THE EXECUTIVE BRANCH THE TRANSITIONAL CLAUSES SAY THAT LEGISLATORS ELECTED IN THIS ROUND WILL SERVE ONLY TWO YEARS AND CAN HOLD JOBS SIMULTANEOUSLY IN THE LEGISLATURE AND EXECUTIVE BRANCH FOR EXAMPLE AMONG RUSSIA'S CURRENT MINISTERS OR CABINET MEMBERS DEPUTY PRIME MINISTER YEGOR GAIDAR HEADS A PARTY LIST FOR ELECTION TO THE NEW STATE DUMA ALTHOUGH MR GAIDAR CLEARLY HOPES TO STAY ON AS A MINISTER HORSETRADING AMONG PARTIES IN AN EFFORT NOT TO SPLIT SOME OF THE VOTE HAS ADDED TO THE CHAOS AN AMERICAN ELECTION OBSERVER SAYS THAT IN SOME DISTRICTS CANDIDATES HAVE DROPPED OUT OF THE RACE BUT THEIR NAMES REMAIN ON THE PREPRINTED BALLOTS THE PLAN IS FOR ELECTION AUTHORITIES TO CROSS OUT SUCH NAMES BY HAND THE OBSERVER SAYS BUT THE PROBLEM WILL BE TO ENSURE THAT THIS DOESN'T INVALIDATE THE BALLOTS OTHER PROBLEMS KEEP CROPPING UP YESTERDAY FOR EXAMPLE ELECTION OFFICIALS STILL WERE DEBATING HOW TO TALLY BALLOTS FOR THE CONSTITUTIONAL REFERENDUM PORTION OF THE VOTE WHICH REQUIRES A 50 VOTER TURNOUT FOR RATIFICATION THE ISSUE IS WHETHER TO COUNT BALLOTS CARRIED INTO THE VOTING BOOTHS OR THOSE FOUND LATER IN THE BALLOT BOXES BECAUSE SOME VOTERS OPPOSED TO THE CONSTITUTION MIGHT ABSTAIN BY SIMPLY POCKETING THE BALLOTS SOMEWHERE IN ALL THIS UNCERTAINTY COMES THE QUESTION OF WHO MIGHT WIN RECENT POLLS SUGGEST THAT ONE OF THE REFORM PARTIES RUSSIA'S CHOICE LED BY MR GAIDAR WILL DRAW THE LARGEST FRACTION OF THE VOTE FOLLOWED BY ANOTHER REFORM PARTY LED BY FORMER SOVIET MINISTER GRIGORY YAVLINSKY THEN COMES THE COMMUNIST PARTY OTHERS LIKELY TO CLEAR THE 5 VOTE THRESHOLD ARE THE REGIONALINTEREST PARTY FOR RUSSIAN UNITY AND ACCORD LED BY SERGEY SHAKHRAI THE ANTIREFORM FARMVOTE AGRARIAN PARTY AND THE NEOFASCIST LIBERAL DEMOCRATIC PARTY OF VLADIMIR ZHIRINOVSKY BUT HOW THE VOTE MIGHT FINALLY GO OR WHAT KIND OF COALITION MIGHT EMERGE REMAINS A MYSTERY ST PETERSBURG MAYOR ANATOLY SOBCHAK WHO ALSO IS LEADER OF THE RUSSIAN MOVEMENT FOR DEMOCRATIC REFORMS PREDICTS THAT THE NEW PARLIAMENT WILL BE A MOSAIC OF AT LEAST NINE PARTIES MR GAIDAR WARNED WEDNESDAY THAT THE ENTIRE SPECTRUM OF FORCES THAT MADE UP THE OLD PARLIAMENT MAY BE REPRODUCED THE ONLY SURE BET ONE WESTERN DIPLOMAT HERE NOTES IS WHATEVER EMERGES WILL BE NOISY 9312100054 931210 WHO'S NEWS D'AMATO RESIGNS AS BORDEN'S CHIEF AND CHAIRMAN BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO RESIGNED AMID GROWING CRITICISM OF HIS EFFORTS TO TURNAROUND THE BELEAGURED FOOD AND HOUSEHOLDPRODUCTS CONCERN AFTER A SPECIAL MEETING YESTERDAY BORDEN'S BOARD NAMED ERVIN R SHAMES THE COMPANY'S 53YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER TO IMMEDIATELY SUCCEED MR D'AMATO AS CHIEF EXECUTIVE OFFICER WE WANTED A MANAGEMENT CHANGE SAID FRANK J TASCO A 66YEAROLD BORDEN DIRECTOR WHO WAS APPOINTED THE NEW CHAIRMAN MR D'AMATO HIRED MR SHAMES TO HEAD UP THE FOOD DIVISION AND THE BOARD FELT IT WAS APPROPRIATE THAT SOMEONE OF MR SHAMES' EXPERIENCE AND APPROACH HEAD UP THE COMPANY MR D'AMATO COULDN'T BE REACHED FOR COMMENT INDEED MR SHAMES WAS HANDPICKED BY MR D'AMATO ONLY FIVE MONTHS AGO AFTER AN EXTENSIVE SEARCH TO FIND AN EXPERIENCED FOOD MARKETER MR SHAMES MOST RECENTLY SERVED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF STRIDE RITE CORP BUT ALSO HAD SPENT 22 YEARS IN THE FOOD INDUSTRY HOLDING THE POSITIONS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENERAL FOODS USA AND PRESIDENT OF KRAFT USA THE DEPARTURE OF MR D'AMATO 63 ENDS WEEKS OF SPECULATION ABOUT A MAJOR SHAKEUP AT BORDEN WALL STREET WAS GROWING INCREASINGLY IMPATIENT WITH THE PACE AND EFFECTIVENESS OF BORDEN'S LATEST RESTRUCTURING EFFORTS IN AN INTERVIEW MR SHAMES SAID BORDEN IS MAKING PROGRESS ON AN ANALYSIS OF ITS FARFLUNG BUSINESSES AND SAID HE EXPECTS TO ANNOUNCE THE RESULTS SHORTLY HE DECLINED TO BE MORE SPECIFIC THE NEWS SPURRED SPECULATION THAT BORDEN FINALLY MAY MOVE FASTER IN STREAMLINING ITS DIVERSE FOOD PORTFOLIO WHICH INCLUDES EVERYTHING FROM CREMORA NONDAIRY CREAMER TO CRACKER JACK I THINK SHAMES WANTS TO MAKE SOME MAJOR FIRINGS AND ASSET SALES SAID JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INC D'AMATO HAS BEEN HERE TWO YEARS AND NOTHING MAJOR HAS BEEN SOLD YET IN THE THIRD QUARTER THE COMPANY EKED OUT 200000 IN NET INCOME ON SALES OF 169 BILLION REFLECTING SIGNIFICANT PROFIT DROPS IN ALL OF ITS MAJOR BUSINESS UNITS THE BOARD MADE IT CLEAR THAT BORDEN NEEDED A SUBSTANTIAL CHANGE SAID NOMI GHEZ ANALYST AT GOLDMAN SACHS & CO IT'S CLEAR THAT MR D'AMATO TRIED A NUMBER OF RESTRUCTURING ACTIONS OVER THE PAST TWO YEARS WHICH INSTEAD OF IMPROVING THE COMPANY'S OPERATIONS ACTUALLY CAUSED FURTHER AND VERY RAPID DETERIORATION BORDEN'S SHARES WHICH CEASED TRADING PRIOR TO THE ANNOUNCEMENT ENDED AT 18125 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9312100053 931210 LEISURE & ARTS BUSINESS BOOKSHELF WHY APPLE'S GURU STRUCK OUT WITH NEXT BY ED ZSCHAU THE REAL STORIES ABOUT SUCCESSFUL HIGHTECHNOLOGY STARTUPS ARE NOT ABOUT TECHNICAL BREAKTHROUGHS LABORATORIES OR PRODUCTS RATHER THEY ARE ABOUT UNUSUAL PEOPLE WITH POWERFUL IDEAS WHO ARE DRIVEN TO DO EXTRAORDINARY THINGS AND ARE CONFIDENT IN THEIR ABILITIES TO SUCCEED STEVE JOBS AND THE NEXT BIG THING ATHENEUM 374 PAGES 24 BY RANDALL E STROSS IS SUCH A STORY STEVE JOBS HAD COFOUNDED APPLE COMPUTER INC AND LAUNCHED THE PERSONALCOMPUTER INDUSTRY HE HAD BECOME A BUSINESS ICON IN HIS 20S APPLE'S SUCCESS MADE HIM A RICH CELEBRITY WHEN HE WAS FORCED OUT OF APPLE BY JOHN SCULLY HIS HANDPICKED SUCCESSOR MR JOBS FELT HE HAD SOMETHING TO PROVE HE WANTED TO CREATE AN EVEN MORE SPECTACULAR SUCCESS AND NEXT INC WAS TO BE THAT COMPANY BUT IN SHARP CONTRAST TO APPLE NEXT HAS BEEN A DISAPPOINTMENT IT CONSUMED 250 MILLION OVER EIGHT YEARS WITHOUT PRODUCING A SUCCESSFUL PRODUCT OR SUSTAINED PROFITABILITY IT WAS CHARACTERIZED BY FREQUENT CHANGES IN STRATEGY AND BY MAJOR MISSTEPS ALTHOUGH ITS OBJECTORIENTED SOFTWARE MAY YET GIVE THE COMPANY A FUTURE NEXT WAS ALMOST A TEXTBOOK CASE OF HOW NOT TO BUILD A HIGHTECH ENTERPRISE MR STROSS'S ENGAGING STYLE MAKES WHAT IS REALLY BUSINESS HISTORY READ LIKE A NOVEL BASED ON EXTENSIVE INTERVIEWS AND PUBLISHED ACCOUNTS MR STROSS USES VIGNETTES AND WORD PICTURES TO MAKE THE COMPUTER INDUSTRY AND SOME OF ITS UNIQUE PERSONALITIES COME ALIVE HE TELLS HOW MR JOBS MESMERIZED ROSS PEROT INTO BECOMING AN INVESTOR AND DIRECTOR SECURED 140 MILLION OF INVESTMENT FROM CANON INC IN JAPAN AND ORCHESTRATED PRODUCTANNOUNCEMENT EXTRAVAGANZAS THAT ATTRACTED HUGE CROWDS AND NATIONAL MEDIA ATTENTION ALL AT A TIME WHEN THERE WERE REALLY NO PRODUCTS READY FOR THE MARKET THE CONTRAST THAT MR STROSS PAINTS BETWEEN MR JOBS AND SCOTT MCNEALY WHO BUILT SUN MICROSYSTEMS INC INTO A WORKSTATION GIANT CASTS AN ILLUMINATING LIGHT ON HOW PERSONALITIES SHAPE HIGHTECHNOLOGY ENTERPRISES MR MCNEALY COMES OFF AS A FRUGAL UNPRETENTIOUS FUNLOVING PRACTICAL FELLOW DEDICATED TO MAKING THE TECHNOLOGY IN HIS PRODUCTS WIDELY AVAILABLE SUN BECAME PROFITABLE WITHIN SIX MONTHS AFTER ITS FOUNDING MR JOBS ON THE OTHER HAND WANTED NEXT TO BE THE IDEAL COMPANY WITH UNIQUE PROPRIETARY PRODUCTS IN PURSUING THAT GOAL HE WAS EXTRAVAGANT UNCOMPROMISING SERIOUS AND PROTECTIVE IN AN INTERESTING POSTSCRIPT SUN RECENTLY AGREED TO INVEST 10 MILLION IN NEXT AND TO LICENSE NEXTSTEP SOFTWARE THE MOST INTRIGUING PARTS OF THE BOOK DESCRIBE WHAT IT WAS LIKE TO WORK AT NEXT THE COMPANY WAS VERY MUCH LIKE A CULT HANDPICKED TRUE BELIEVERS INSTILLED WITH IDEALISM AND LOFTY GOALS WORKED IN AN UNREAL ENVIRONMENT THAT REVOLVED AROUND THEIR LEADER MR JOBS IS DESCRIBED AS A TASKMASTER WITH MOOD SWINGS WHO DEVOTED EXCESSIVE ATTENTION TO MINUTIAE AND MISLED CUSTOMERS INVESTORS AND EVEN HIS EMPLOYEES IF IT SUITED HIS PURPOSE NOW AND AGAIN ONE GETS THE FEELING THAT MR STROSS IS GOING OUT OF HIS WAY TO UNDERMINE MR JOBS'S PUBLIC IMAGE FOR INSTANCE WHILE THE AUTHOR IS MORE THAN WILLING TO BLAME MR JOBS FOR ALL THE DIFFICULTIES AT NEXT HE IS RELUCTANT TO GIVE MR JOBS MUCH CREDIT FOR HIS PHENOMENAL LAUNCHING OF APPLE BUT WHY IN FACT DID THE ENTREPRENEURIAL LEADER OF APPLE FAIL WITH NEXT MR STROSS PROVIDES SOME INSIGHTS WHEN TAKEN TO AN EXTREME THE PERSONAL TRAITS REQUIRED TO LAUNCH A HIGHTECH COMPANY CAN DOOM AN ENTERPRISE THERE IS A FINE LINE BETWEEN WHAT IS EXTREME AND WHAT IS MERELY DYNAMIC AND DETERMINED IDEAS AHEAD OF THEIR TIME CAN BECOME IDEAS WHOSE TIME WILL NEVER COME SUPERCONFIDENCE CAN TURN INTO ARROGANCE THAT LEADS TO STUBBORN ADHERENCE TO AN UNWORKABLE PLAN ATTENTION TO DETAIL CAN BECOME STIFLING PERFECTIONISM AND EXCESSIVE CONTROL DOING THINGS RIGHT CAN BE AN EXCUSE FOR EXTRAVAGANCE CREATING AN IMAGE OF SUCCESS IN ORDER TO INSPIRE CONFIDENCE IN CUSTOMERS AND INVESTORS CAN LEAD TO HALFTRUTHS AND DISTORTIONS ACCORDING TO MR STROSS MR JOBS WENT OVER THE LINE IN EVERY CASE ALSO STARTING NEXT WAS A VERY DIFFERENT CHALLENGE FROM STARTING APPLE MR JOBS CREATED NEXT TO SHOW THAT HE COULD BUILD ANOTHER COMPANY FROM SCRATCH WHILE THE IDEA BEHIND APPLE WAS TO PRODUCE PRODUCTS THAT AN EMERGING GROUP OF CUSTOMERS WANTED NEXT ENTERED A MATURE MARKET AND IT HAD TOO MUCH MONEY WHICH LED TO EXCESSES AND A LACK OF CONCERN ABOUT THE BOTTOM LINE APPLE HAD TO BOOTSTRAP ITSELF TO PROFITABILITY AND AS MR STROSS SUGGESTS THERE IS A CHANCY THING CALLED LUCK APPLE PULLED TOGETHER THE RIGHT PRODUCT AND THE RIGHT COMBINATION OF TALENTS AT THE RIGHT TIME NEXT DIDN'T IT WAS LATE TO A MARKET ALREADY INCREASINGLY DOMINATED BY SUN AND EVEN WITH SEVERAL TRIES IT COULDN'T FIND THE RIGHT PRODUCT AND MARKETING APPROACH TO GET OFF THE GROUND MR STROSS POINTS OUT THAT ENTREPRENEURS LIKE BASEBALL PLAYERS CAN'T HIT A HOME RUN EVERY TIME SOMETIMES THEY STRIKE OUT BUT TRUE ENTREPRENEURS KEEP ON SWINGING BECAUSE THEY KNOW THAT SOMEDAY THEY'LL CREATE THE NEXT BEST THING MR ZSCHAU IS GENERAL MANAGER OF THE STORAGE SYSTEMS DIVISION AT INTERNATIONAL BUSINESS MACHINES CORP 9312100052 931210 BUSINESS BRIEF NATIONAL SEMICONDUCTOR CORP CHIP MAKER'S NET JUMPED BY 72 IN ITS 2ND QUARTER NATIONAL SEMICONDUCTOR CORP SANTA CLARA CALIF REPORTED NET INCOME FOR THE SECOND QUARTER ENDED NOV 28 JUMPED 72 TO 607 MILLION OR 46 CENTS A SHARE THE RESULTS WERE SLIGHLTY BETTER THAN MANY ANALYSTS HAD EXPECTED NATIONAL SEMICONDUCTOR SAID THAT GROSS PROFIT MARGINS INCREASED TO 418 IN THE QUARTER FROM 34 LAST YEAR REFLECTING COST CONTROLS AMONG OTHER THINGS HOWEVER THE CHIP MAKER SAID IT REMAINS CAUTIOUS ABOUT THE OUTLOOK FOR THE REMAINDER OF ITS FISCAL YEAR THAT COMMENT APPARENTLY CONSTRAINED WALL STREET'S REACTION OVER THE RELATIVELY STRONG EARNINGS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NATIONAL SEMICONDUCTOR CLOSED AT 1475 DOWN 125 CENTS SALES FOR THE QUARTER ROSE 18 TO 5824 MILLION FROM 4919 MILLION A YEAR AGO IN THE YEAREARLIER QUARTER NATIONAL SEMICONDUCTOR EARNED 353 MILLION OR 27 CENTS A SHARE FOR THE SIX MONTHS PROFIT MORE THAN DOUBLED TO 1178 MILLION OR 90 CENTS A SHARE FROM YEARAGO PROFIT OF 572 MILLION OR 44 CENTS A SHARE SALES FOR THE SIX MONTHS INCREASED 18 TO 114 BILLION FROM 9643 MILLION 9312100051 931210 BUSINESS BRIEF AMERCO UHAUL SUES MAIN PARTNERS OF CONCERNS IT WANTS TO BUY UHAUL INTERNATIONAL INC PHOENIX SUED THE GENERAL PARTNERS OF 17 REALESTATE LIMITED PARTNERSHIPS THE COMPANY IS TRYING TO ACQUIRE ALLEGING IMPROPER AMENDMENTS TO AGREEMENTS GOVERNING THE PARTNERSHIPS THE PARTNERSHIPS WHICH OWN SELFSERVICE STORAGE FACILITIES ARE MANAGED BY SHURGARD INC OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL OF THE PARTNERSHIPS UHAUL'S 3095 MILLION OFFER IS COMPETING WITH A PROPOSAL BY THE GENERAL PARTNERS TO CONSOLIDATE OR ROLL UP THE PARTNERSHIPS INTO A PUBLICLY HELD REALESTATE INVESTMENT TRUST IN THE SUIT FILED IN DELAWARE CHANCERY COURT THE TRUCK AND TRAILER RENTAL COMPANY ACCUSED THE GENERAL PARTNERS OF IMPROPERLY AMENDING THE AGREEMENTS GOVERNING 15 OF THE PARTNERSHIPS TO MAKE IT HARDER TO REMOVE THE GENERAL PARTNERS UHAUL HAS SAID IT WOULD SEEK TO REMOVE THOSE PARTNERS TO COMPLETE ITS ACQUISITION BID THE SUIT SEEKS TO NULLIFY THE AMENDMENTS GEORGE VANDEMAN A LAWYER FOR THE GENERAL PARTNERS SAID THE SUIT IS WITHOUT MERIT AND WILL BE CONTESTED UHAUL WHICH ALSO HAS INTERESTS IN SELFSERVICE STORAGE IS A UNIT OF AMERCO A PRIVATELY HELD COMPANY CONTROLLED BY THE SHOEN FAMILY 9312100050 931210 BUSINESS BRIEF WOLF FINANCIAL GROUP INC UNIT MAY SELL SIX BRANCHES TO CORPORATE MANAGEMENT FN WOLF & CO A UNIT OF NEW YORKBASED WOLF FINANCIAL GROUP INC IS IN DISCUSSIONS TO SELL SIX OF ITS 12 BROKERAGE BRANCHES TO A UNIT OF CORPORATE MANAGEMENT GROUP INC A BOCA RATON FLA FINANCIALSERVICES HOLDING COMPANY IN ADDITION THE DOW JONES NEWS SERVICE REPORTED CORPORATE MANAGEMENT WOULD HAVE AN OPTION TO PURCHASE THE REMAINING WOLF BRANCHES MICHAEL MARINO AN ATTORNEY FOR FN WOLF DECLINED TO COMMENT ON THE SALES TALKS CORPORATE MANAGEMENT CONFIRMED THE DISCUSSIONS WE ARE INTERESTED SOLELY IN ACQUIRING AN EXPERIENCED SALES FORCE AT AN ATTRACTIVE PRICE SAID MARSHALL LEEDS CORPORATE MANAGEMENT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE ARE NOT INTERESTED IN ACQUIRING FN WOLF THE SIX WOLF OFFICES THAT WOULD BE SOLD ARE IN ALEXANDRIA RESTON RICHMOND AND VIRGINIA BEACH IN VIRGINIA AND IN CHARLOTTE AND RALEIGH IN NORTH CAROLINA 9312100049 931210 NEW ISSUES SET TO HIT RECORD OF 1 TRILLION BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET'S NEWISSUE BOOM IS ON THE VERGE OF A HISTORIC BREAKTHROUGH TODAY OR MONDAY 1993 SALES OF NEW STOCKS AND BONDS BY CORPORATE AMERICA WILL TOP 1 TRILLION NEW ISSUES LAST YEAR TOTALED A RECORD 8561 BILLION THE RECORD TOPS A HUGE THREEYEAR BUSINESS BONANZA FOR THE BROKERAGE INDUSTRY RESULTING IN UNPRECEDENTED PROFITS A TORRID EXPANSION INTO INTERNATIONAL MARKETS AND A RECORD HIGH FOR THE STOCK MARKET IT WILL BE THE FIRST TIME ANNUAL NEWISSUE VOLUME HAS CRACKED OUT OF THE BILLIONDOLLAR BRACKET AND FOR NOW WALL STREET ANALYSTS AND TOP EXECUTIVES SAY THE GOOD TIMES COULD JUST KEEP ROLLING ALONG THE BOOM IS BEING POWERED BY A POTENT COMBINATION OF LOW INTEREST RATES EFFORTS BY US CORPORATIONS TO SLASH DEBT BURDENS AND STRONG LEVELS OF FINANCING IN THE WORLD'S EMERGING MARKETS PARTICULARLY THROUGH PRIVATIZATIONS SINCE THOSE FACTORS LARGELY REMAIN IN PLACE WALL STREET EXECUTIVES AND ANALYSTS SAY THERE'S AT LEAST ANOTHER ROBUST QUARTER OR TWO OF NEW STOCK AND BOND BUSINESS THROUGH 4 PM EST YESTERDAY SECURITIES FIRMS HAD HELPED BRING TO MARKET THIS YEAR 6543 STOCK AND BOND DEALS VALUED AT 9951 BILLION FOR ITS PAINS THE SECURITIES INDUSTRY HAS GOTTEN ITS FATTEST PAYCHECK UNDERWRITING FEES THIS YEAR TOTAL 86 BILLION AND THERE ARE ANOTHER 35 NEWSTOCK ISSUES SET TO COME TO MARKET BY YEAR'S END WITH EXPECTED PROCEEDS OF 51 BILLION ACCORDING TO SECURITIES DATA CO WHEN WILL THE PARTY BE OVER NOT UNTIL INTEREST RATES MOVE SIGNIFICANTLY HIGHER SAY WALL STREET EXECUTIVES AND THEY DON'T SEE THAT HAPPENING ANYTIME SOON IS THERE GOING TO BE AN EVENT THAT COULD MATERIALLY CHANGE THE DIRECTION OF INTEREST RATES OR THE RATE OF INFLATION ASKS JOHN L STEFFENS HEAD OF MERRILL LYNCH'S RETAIL BROKER SALES FORCE WE DON'T SEE ANYTHING EVERY TIME THE ECONOMY PICKS UP SAYS SMITH BARNEY SHEARSON INC'S VICE CHAIRMAN ROBERT LESSIN CORPORATIONS ANNOUNCE MORE LAYOFFS IN FACT HE SAYS THE LAYOFFS SO FAR HAVE ONLY BEEN THE TIP OF THE ICEBERG GIVEN THE STRUCTURAL OVERHANG OF WHITECOLLAR EMPLOYMENT MR LESSIN SAYS THE COUNTRY IS IN FOR A PERPETUALLY SLOWGROWTH ECONOMY THE WAVE OF CORPORATE REFINANCINGS MAY BE SLOWING BUT THERE'S VERY LITTLE REASON FOR INTEREST RATES TO GO UP A MATERIAL AMOUNT MERRILL LYNCH & CO AND GOLDMAN SACHS & CO RANK FIRST AND SECOND IN UNDERWRITING THIS YEAR THE TWO WALL STREET POWERHOUSES ACCOUNTED FOR NEARLY A THIRD OF THE SECURITIES INDUSTRY'S UNDERWRITING FEES MERRILL HAS BROUGHT IN 17 BILLION AND GARNERED A 167 SHARE OF THE STOCK AND BOND UNDERWRITING DEALS THIS YEAR ACCORDING TO SECURITIES DATA GOLDMAN SACHS HAS TAKEN HOME 11 BILLION IN FEES AND WON 12 OF THIS YEAR'S BUSINESS SALOMON BROTHERS INC IS CLIMBING UP IN THE STOCKUNDERWRITING RANKINGS AFTER THE LONG DRY SPELL THAT FOLLOWED ITS 1991 TREASURYAUCTION BIDDING SCANDAL AND SUBSEQUENT INVESTIGATION BY THE FEDERAL GOVERNMENT THE SALOMON INC UNIT ROSE IN THE EQUITY RANKINGS TO SIXTH SO FAR THIS YEAR FROM 12TH IN 1992 WITH ITS SHARE ADVANCING TO 51 FROM 21 A YEAR EARLIER 9312100048 931210 FED'S AUDIT SYSTEM NEEDS BIG REVISIONS' INSPECTOR GENERAL SAYS WASHINGTON THE FEDERAL RESERVE'S SYSTEM FOR AUDITING ITS 12 RESERVE BANKS IS TOO COZY AND NEEDS MAJOR REVISIONS ACCORDING TO THE CENTRAL BANK'S INSPECTOR GENERAL THE PROBLEM ACCORDING TO THE INSPECTOR GENERAL IS THAT THE FED'S DIVISION OF RESERVE BANK OPERATIONS AND PAYMENTS SYSTEMS IS RESPONSIBLE BOTH FOR DAYTODAY OVERSIGHT OF RESERVE BANKS AND FOR AUDITING THEM THIS DUAL RESPONSIBILITY DOESN'T MEET IMPARTIALITY STANDARDS ESTABLISHED BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ACCORDING TO THE FED'S INSPECTOR GENERAL BRENT BOWEN WE BELIEVE THERE IS AN APPEARANCE OF A LACK OF INDEPENDENCE HIS REPORT SAYS IT PROPOSES THAT THE FED EITHER FULLY SEGREGATE THE AUDIT PROGRAM OR HIRE AN OUTSIDE AUDITOR THE RESERVE BANKS WITH ASSETS LAST YEAR OF MORE THAN 367 BILLION AND INCOME OF MORE THAN 18 BILLION PLAY A KEY ROLE IN THE PAYMENTS SYSTEM THE EXECUTION OF MONETARY POLICY AND OVERSIGHT OF THE US BANKING SYSTEM ACCORDING TO CORRESPONDENCE WITH THE INSPECTOR GENERAL CLYDE FARNSWORTH DIRECTOR OF THE FED DIVISION DOESN'T AGREE WITH THE RATIONALE FOR THE RECOMMENDATION HOWEVER HE PROMISED A REVIEW OF THE PROPOSAL 9312100047 931210 CHINA A SPECIAL REPORT BUSINESS PLAN BUYING EXPERTISE LOOKING FOR A CONSULTANT TO SHOW YOU THE WAY SOME WORDS OF ADVICE ABOUT ADVISERS BY AMANDA BENNETT NEW YORK WITHOUT QUESTION THE RIGHT CONSULTANT CAN BE A BOON THERE'S NOTHING BETTER THAN SOMEONE WITH EXPERIENCE WHO CAN SHOW YOU THE ROPES BUT MANY CHINA CONSULTANTS MAKE PROMISES THEY CAN'T KEEP THEIR CONNECTIONS TO TOP OFFICIALS MAY BE ILLUSORY AND THEIR KNOWLEDGE MAY BE OUTDATED THEIR DEMANDS ON YOU ALSO MAY BE DIFFERENT FROM WHAT YOU'RE USED TO THEY MAY INSIST ON AN EQUITY STAKE IN THE BUSINESS AND MIGHT EVEN END UP RUNNING IT HERE ARE A FEW TYPES OF CONSULTANTS YOU MIGHT CONSIDER CONTACTING OR AVOIDING TURNING TO A CHINESE CONSULTANT FROM TAIWAN HELPED NIKE INC RESOLVE YEARS OF FRUSTRATION IN CHINA THE BEAVERTON ORE COMPANY HIRED THE TAIWANESE WHO UNDERSTOOD HOW TO OPERATE ON THE MAINLAND TO TAKE OVER NIKE'S CHINESE PRODUCTION OF RUNNING SHOES IT WAS AS THOUGH WE HAD TURNED ON A LIGHT IN A DARK ROOM SAYS DAVID PINGCHUNG CHANG WHO WORKED FOR NIKE AT THE TIME ALL KINDS OF OVERSEAS CHINESE ETHNIC CHINESE LIVING OUTSIDE CHINA OFFER THEIR SERVICES TO AMERICAN COMPANIES ZHAO GANG AN ARTIST LIVING IN NEW YORK GOT INTO A SIDELINE OF HELPING US COMPANIES IN CHINA FIRST BY WORKING WITH A CHINESE FRIEND TRYING TO FORM A MEDIA COMPANY BUT SOME OVERSEAS CHINESE FREELANCERS KNOW LITTLE THAT CAN REALLY HELP A COMPANY WE ARE TALKING ABOUT SOCIALSCIENCE AND LIBERALARTS STUDENTS WITH ZERO BUSINESS EXPERIENCE SAYS RICHARD BRECHER DIRECTOR OF BUSINESSADVISORY SERVICES FOR THE USCHINA BUSINESS COUNCIL A TRADE GROUP IN WASHINGTON THE SERVICES THEY OFFER OFTEN BOIL DOWN TO INTRODUCING PEOPLE TO A CHINESE COMPANY THAT HAS OFFERED THE STUDENT A FINDER'S FEE FOR AN AMERICAN PARTNER HE SAYS ADDING I TEND TO ADVISE COMPANIES AWAY FROM THESE TYPES OF ARRANGEMENTS HONG KONG CHINESE CONTACTS CAN BE INVALUABLE BUT THERE ARE LIMITATIONS CULTURALLY HONG KONG CHINESE ARE CLOSE TO THEIR BRETHREN IN SOUTH CHINA THERE'S A SOCIAL AND LINGUISTIC GAP BETWEEN HONG KONG CHINESE AND CHINESE IN THE NORTH THE YANGTZE RIVER EXPLAINS NIKE'S MR CHANG IS THE MASONDIXON LINE OF CHINA CONNECTIONS IN CHINA CAN CUT THROUGH GORDIAN KNOTS MANY CHINA SPECIALISTS THOUGH WARN AGAINST THE ARMIES OF PEOPLE FROM FORMER US GOVERNMENT OFFICIALS TO THE SONS AND DAUGHTERS OF HIGHRANKING CHINESE OFFICIALS WHO OFFER TO SELL THEIR INFLUENCE YOU MAY END UP BANKING HEAVILY ON A CONTACT WHO CHANGES JOBS OR FALLS OUT OF FAVOR LEAVING YOUR RELATIONSHIP WORTHLESS AND THE HEALTH OF YOUR BUSINESS IMPERILED MOREOVER AS CHINA BECOMES MORE DECENTRALIZED A WORD FROM THE TOP DOESN'T ALWAYS MOVE MOUNTAINS ANYMORE BUSINESS IS DONE AT THE LOCAL LEVEL NOT IN BEIJING MR BRECHER SAYS AN IMPRIMATUR FROM DENG XIAOPING WON'T GET THE POWER TURNED ON OR YOUR GOODS THROUGH CUSTOMS ANY PETTY BUREAUCRAT CAN GUM UP THE WORKS THE FIELD IS FULL OF PEOPLE WITH EXPERIENCE I KNOW MY WAY AROUND SAYS RICHARD JOHNSTON PRESIDENT OF EEI INC A CONSULTING FIRM IN ALEXANDRIA VA MR JOHNSTON SPENT 4 1/2 YEARS IN CHINA FIRST AS A REPRESENTATIVE FOR CHASE MANHATTAN CORP AND LATER AS THE US GOVERNMENT'S SENIOR COMMERCIAL OFFICER PEGGY WATSON A SENIOR VICE PRESIDENT OF PACIFIC RIM CONSULTING GROUP IN HONG KONG SAYS THE BENEFITS OF SUCH EXPERIENCE CAN BE SUBTLE BUT SUBSTANTIAL THEORY AND REALITY DON'T ALWAYS MOVE TOGETHER IN CHINA SHE SAYS IT'S GOOD TO KNOW PEOPLE WHO SEE THE RED FLAGS BEFORE THEY BECOME A PROBLEM STILL BECAUSE CHINA IS CHANGING SO QUICKLY YOU NEED TO KNOW WHEN CONSULTANTS GOT THEIR EXPERIENCE AND IN WHAT INDUSTRY AND WHETHER THEY HAVE KEPT UPTODATE IT'S EXTREMELY DANGEROUS TO DEAL WITH SOMEONE WHO IS RESIDING IN THE US AND SELLING PAST KNOWLEDGE SAYS STEPHEN SHAW A PRINCIPAL WITH MCKINSEY & CO IN HONG KONG IF IT'S BASED ON EXPERIENCES IN THE 1970S AND 1980S THEY ARE OUT OF TOUCH FUNDAMENTALLY YOUR FAVORITE BIGTIME CONSULTING COMPANY MAY SAY IT WILL GIVE YOU THE SAME GOOD SERVICE YOU HAVE RECEIVED IN THE US WE BELIEVE THAT WE ARE ABLE TO PUT CHINA IN THE CONTEXT OF CLIENTS' TOTAL GLOBAL BUSINESS SAYS ONE CONSULTANT AT A MAJOR FIRM WE KNOW HOW BUSINESS WORKS WE ARE ANALYTICALLY DRIVEN THAT MAY SOUND GOOD BUT ASK YOUR CONSULTANT WHAT TO DO ABOUT INTRANSIGENT CHINESE CUSTOMS OFFICIALS OR MARKETS WHERE CONSUMER DATA DON'T EXIST AND YOU COULD FIND THAT HIS ROOTS IN CHINA ARE SHALLOW INDEED MANY CONSULTING FIRMS HAVE OPENED CHINA OFFICES ONLY RECENTLY SO THEY MAY BE BUILDING THEIR EXPERIENCE AT YOUR EXPENSE TO AVOID THESE PROBLEMS CHECK THE REFERENCES NOT JUST OF THE FIRM ITSELF BUT ALSO OF THE INDIVIDUALS WHO WILL BE HELPING YOU MS BENNETT IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9312100046 931210 COMMODITIES WHEAT SOYBEAN FUTURES ARE EXPECTED TO RISE AFTER USDA REPORT SHOWING DECREASING STOCKS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL WHEAT AND SOYBEAN FUTURES PRICES ARE EXPECTED TO RISE TODAY IN RESPONSE TO A US AGRICULTURE DEPARTMENT REPORT THAT SHOWED DIMINISHING STOCKS OF WHEAT AND SOYBEAN PRODUCTS IN LIGHT TRADING PRIOR TO THE REPORT AT THE CHICAGO BOARD OF TRADE YESTERDAY THE PRICE OF WHEAT FOR MARCH DELIVERY FELL 1 3/4 CENTS TO 361 A BUSHEL THE JANUARY SOYBEAN FUTURES CONTRACT WAS DOWN 1 1/2 CENTS TO 684 A BUSHEL AND THE MARCH CORN CONTRACT SLIPPED 1 1/4 CENTS TO 295 A BUSHEL PERHAPS THE MOST SIGNIFICANT COMPONENT OF THE USDA CROP REPORT WAS THE DEPARTMENT'S REDUCTION OF ITS ESTIMATE OF WHEAT ENDING STOCKS TO 642 MILLION BUSHELS DOWN 40 MILLION BUSHELS FROM LAST MONTH'S REPORT ENDING STOCKS ARE THE QUANTITY OF WHEAT THE DEPARTMENT ANTICIPATES WILL BE AVAILABLE NEXT SUMMER AT THE END OF THE 199394 CROP YEAR THE DEPARTMENT ALSO PROJECTED THAT US WHEAT EXPORTS WOULD ENLARGE BY 50 MILLION BUSHELS OVER THE COURSE OF THE CROP YEAR ANALYSTS SAID THIS ESTIMATE WAS SIGNIFICANT BOTH BECAUSE OF THE TIGHT STOCKS OF HIGHQUALITY US WHEAT AND BECAUSE CHINA AND RUSSIA HAVE BEEN ABSENT FROM US GRAIN MARKETS THIS YEAR WE'RE HALFWAY THROUGH THE CROP YEAR AND WHEAT EXPORTS ARE DOWN ONLY FRACTIONALLY DESPITE THE ABSENCE OF RUSSIA AND CHINA OUR TWO BIGGEST WHEAT CUSTOMERS SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO THE USDA HAS UTILIZED EXPORT BONUS EXPORT SUBSIDY PROGRAMS TO BUILD EXPORTS TO OTHER COUNTRIES MR BASSE NOTED THAT RUSSIAN AGRICULTURE OFFICIALS ARE SCHEDULED TO VISIT WASHINGTON NEXT WEEK TO DISCUSS WITH THEIR US COUNTERPARTS THE POSSIBILITY OF A NEW CREDIT PACKAGE FOR PURCHASE OF US WHEAT HIGHQUALITY WHEAT IS VERY SCARCE IN RUSSIA IN PART BECAUSE THE RUSSIAN WHEAT CROP HAS BEEN DAMAGED BY PERSISTENTLY COLD AND WET WEATHER JUST AS THE US WHEAT CROP WAS THIS YEAR BECAUSE OF THE DAMAGE RUSSIA IS EXPECTED TO IMPORT US WHEAT IF THE COUNTRY IS GRANTED A CREDIT PACKAGE BY THE USDA IN ANOTHER IMPORTANT COMPONENT OF THE USDA REPORT SOYBEAN OIL ENDING STOCKS WERE LOWERED TO 101 BILLION POUNDS THE USDA SAID DOMESTIC USE OF SOYBEAN OIL HAD INCREASED BY 150 MILLION POUNDS SOYBEAN OIL STOCKS HAD BEEN EXPECTED TO DECLINE BUT NOT BECAUSE OF AN INCREASE IN US USAGE RATHER TRADERS EXPECTED THE QUANTITY OF AVAILABLE SOYBEAN OIL TO FALL BECAUSE OF THE POOR QUALITY OF MUCH OF THE US SOYBEAN CROP AFTER WET WEATHER DAMAGED CROPS DURING THE SUMMER GROWING SEASON IN OTHER COMMODITY MARKETS YESTERDAY ENERGY JANUARY CRUDE OIL FUTURES PRICES SETTLED SLIGHTLY HIGHER ON THE NEW YORK MERCANTILE EXCHANGE IN A SESSION MARKED BY TECHNICAL TRADING WITH LITTLE NEWS ON THE FUNDAMENTALS TO AFFECT TRADING JANUARY CRUDE GAINED FOUR CENTS A BARREL TO SETTLE AT 1463 A BARREL MUCH OF THE BEARISH NEWS ON INVENTORIES RELEASED LATE WEDNESDAY BY THE DEPARTMENT OF ENERGY HAD APPARENTLY ALREADY BEEN ABSORBED BY THE MARKET JANUARY NATURAL GAS FELL YESTERDAY AS THOSE PRICES CONTINUE TO RECONCILE THEMSELVES WITH THE RECENT SLIDE IN PETROLEUM PRICES MANY MARKET OBSERVERS HAD SAID THAT NATURAL GAS MIGHT PROVE IMMUNE TO SOME OF THE MARKET'S BEARISHNESS BUT NOW BELIEVE THAT SOME OF THE WORRY MAY HAVE ALSO CAUGHT UP WITH NATURAL GAS LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES SOARED BECAUSE OF HEALTHY DEMAND FOR PORK BELLIES AMONG BACON PROCESSORS AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR FEBRUARY DELIVERY WERE UP 14 CENTS TO 551 CENTS A POUND BULLISH SENTIMENT IN THE MERC'S PORKBELLY PIT BEGAN BUILDING AFTER RELEASE OF THE WEEKLY COLDSTORAGE REPORT ON TUESDAY SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS THE REPORT SHOWED THAT ONLY 29 MILLION POUNDS OF PORK BELLIES MOVED INTO COLD STORAGE LAST WEEK FAR LESS THAN THE EXPECTED 35 MILLION TO 51 MILLION POUNDS THIS LOW LEVEL OF STORAGE IS AN INDICATION OF STRONG DEMAND FOR PORK BELLIES FROM SLICERS WHO CURE AND SLICE THE MEAT TO PRODUCE BACON THE MERC'S FUTURES MARKET ALSO WAS SUPPORTED BY STRENGTH IN THE CASH MARKET FOR PORK BELLIES MR VAUGHT SAID 9312100045 931210 PEPPERAND SALT THEY'VE GIVEN THE NAME OF GRUNGE A FASHION PIONEER STEROID ABUSE RESULTS BRAWN DAMAGE 9312100044 931210 CHINA A SPECIAL REPORT READING THE MARKET CONSUMING PASSIONS A SURGE IN SPENDING MONEY HAS CREATED A NATION OF AVID AND DISCRIMINATING SHOPPERS BY SALLY D GOLL AND YUMIKO ONO GUANGZHOU CHINA YOUNG CHINESE WOMEN DRIPPING WITH GOLD NECKLACES AND BRACELETS THEIR MOUTHS PAINTED SCARLET CROWD AROUND A DEPARTMENTSTORE COSMETICS COUNTER HERE HUNGRILY THEY EYE ROW AFTER ROW OF IMPORTED FACE POWDERS AND LIPSTICKS FOR YU HONG A LOCAL COSMETICS WHOLESALER THIS IS A BEAUTIFUL SIGHT NOW THAT THE ECONOMY IS GROWING SHE SAYS PEOPLE CAN AFFORD TO MAKE THEMSELVES LOOK BETTER THEY CAN ALSO AFFORD TO INDULGE IN MORE FOREIGN BRANDS AND THEY AREN'T STOPPING AT ESTEE LAUDER EYE SHADOW THEY ARE SNAPPING UP PANASONIC LARGESCREEN TELEVISION SETS AND TOSHIBA LASERDISK KARAOKE MACHINES MCDONALD'S HAMBURGERS AND KENTUCKY FRIED CHICKEN CARLSBERG BEER CAMPBELL'S SOUP AND COCACOLA INDEED CHINESE CONSUMERS ARE ACCUMULATING THE TOTEMS OF WESTERN AND JAPANESE YUPPIEDOM AS FAST AS THE MERCHANDISE CAN BE STACKED ON STORE SHELVES THESE THINGS APPEAR TO BE OLD HAT TO US SAYS JOHN FEENIE ASIAPACIFIC EXECUTIVE VICE PRESIDENT OF WALT DISNEY CO'S CONSUMERPRODUCTS DIVISION BUT IN CHINA THEY'RE REVOLUTIONARY THE CHINESE HAVE LONG HAD A LOVE AFFAIR WITH FOREIGN CONSUMER GOODS BUT DEMAND FOR SUCH ITEMS ALONG WITH THE ABILITY TO PAY FOR THEM HAS SOARED TO UNPRECEDENTED HEIGHTS THIS YEAR THANKS TO SOME REDUCED IMPORT TARIFFS AND FURTHER GOVERNMENT ENCOURAGEMENT OF THE EXPANSION OF CAPITALISM THE GOVERNMENT'S MORE RELAXED ATTITUDE TOWARD ADVERTISING AND MEDIA HAS ALSO HELPED HUNDREDS OF AD AGENCIES HAVE SET UP SHOP IN CHINA MEANWHILE A TIME WARNER INC EXECUTIVE SAYS THE AMERICAN SITUATION COMEDY GROWING PAINS IS NOW CHINA'S HIGHESTRATED TELEVISION SHOW SINCE 1979 RETAIL SALES IN CHINA HAVE GROWN AT A COMPOUND ANNUAL RATE OF 15 WITH SALES LAST YEAR JUMPING 157 TO JUST OVER ONE TRILLION YUAN ROUGHLY 173 BILLION AT THE OFFICIAL EXCHANGE RATE DURING THE FIRST SIX MONTHS OF THIS YEAR SALES TOOK AN EVEN BIGGER LEAP SURGING 24 TO 572 BILLION YUAN LUXURY ITEMS ARE RACKING UP RECORD GAINS SALES OF JEWELRY NEARLY DOUBLED IN THE FIRST SIX MONTHS OF 1993 COMPARED WITH THE YEAREARLIER PERIOD ACCORDING TO A SURVEY OF 315 DEPARTMENT STORES GOLD WATCHES AND JEWELRY ARE TOP SELLERS THE FRENCH FASHION HOUSE PIERRE CARDIN THE FIRST MAJOR APPAREL COMPANY TO ENTER THE CHINESE MARKET IT OPENED ITS FIRST SHOWROOM IN 1981 HAS BEEN JOINED BY THE JAPANESE RETAILER ISETAN CO AND SAISON GROUP'S SEIBU DEPARTMENT STORE AS WELL AS BY THE US COMPANIES NIKE INC AND PLAYBOY ENTERPRISES INC WHICH SELLS CLOTHING AND ACCESSORIES HERE JUST LAST MONTH THE AMERICAN DESIGNER DONNA KARAN OPENED HER FIRST DKNY SPORTSWEAR BOUTIQUE IN SHENZHEN FOREIGN CARS AND MOTORCYCLES HAVE BECOME PERHAPS THE ULTIMATE STATUS SYMBOLS A HONDA MOTOR CO OFFICIAL SAYS THE COMPANY'S MOTORCYCLES ARE SELLING LIKE THEY'RE EVAPORATING INTO THIN AIR HONDA EXPECTS TO SELL 680000 OF THEM THIS YEAR AN 11 INCREASE OVER 1992 AND A PRICEY TOYOTA MOTOR CORP LINE CALLED CROWN SOLD 15555 UNITS IN JUST THE FIRST NINE MONTHS OF THE YEAR COMPARED WITH 9291 FOR ALL OF 1992 ADMITTEDLY MUCH OF THIS STUNNING GROWTH COMES OFF A TINY SALES BASE CHINA MAY BE HOME TO CLOSE TO 12 BILLION PEOPLE BUT ONLY 60 MILLION TO 100 MILLION OF THEM ARE BELIEVED TO BE SUFFICIENTLY WELLOFF TO AFFORD FOREIGN CONSUMER GOODS WHAT'S MORE THOSE WITH THE SPARE CASH ON HAND WON'T GRAB JUST ANY IMPORT TOYOTA SELLS PLENTY OF RED CARS IN THE SOUTHERN PROVINCES FOR EXAMPLE BUT THE COLOR WON'T MOVE IN THE NORTH WHERE BRIGHT HUES AREN'T POPULAR AND MOST CHINESE STILL TURN UP THEIR NOSES AT JAPANESE SUSHI APPARENTLY BECAUSE THEY DON'T LIKE VINEGAR IN THEIR RICE AS CHINESE CONSUMERS BECOME MORE SOPHISTICATED YOU CAN NO LONGER EXPECT THAT EVERYTHING YOU HAVE WILL SELL SAYS HAJIME FUKUI OF THE JAPANESE TRADING HOUSE SUMITOMO CORP THOSE DAYS ARE GONE EVEN UNDER THE BEST OF CIRCUMSTANCES MANY FOREIGN COMPANIES WON'T MAKE MONEY HERE FOR YEARS TO COME IT TOOK COCACOLA CO 10 YEARS TO TURN ITS FIRST PROFIT IN CHINA ACCORDING TO THE COMPANY MARKETERS ARE DOING WHAT THEY CAN TO SPEED UP THE TIMETABLE AT THE SHANGHAI ISETAN DEPARTMENT STORE SHISEIDO CO JAPAN'S LARGEST COSMETICS MAKER LURES CUSTOMERS WITH FREE MAKEOVERS BY A TRAINED SPECIALIST WE'RE TRYING TO STAND OUT AS MUCH AS POSSIBLE EXPLAINS YASUTAKA MORI DIRECTOR OF SHISEIDO'S INTERNATIONAL BUSINESS DEVELOPMENT DIVISION EVEN SO THE COMPANY DOESN'T EXPECT TO TURN A PROFIT FOR FIVE YEARS BY THEN SHISEIDO WHICH PLANS TO START MANUFACTURING ITS PRODUCTS LOCALLY WITH A JOINTVENTURE PARTNER NEXT YEAR HOPES TO POST ANNUAL SALES OF ABOUT 95 MILLION SO FAR THE MOST SUCCESSFUL FOREIGN CONSUMERPRODUCTS COMPANIES HERE ARE THOSE THAT STARTED EARLY AND THAT USE LOCAL RAW MATERIALS AND PRODUCTION FACILITIES COCACOLA FOR ONE OPENED ITS FIRST PLANT IN SHANGHAI IN 1927 AFTER PULLING OUT FOLLOWING THE COMMUNIST TAKEOVER IN 1949 IT EVENTUALLY REENTERED THE MARKET IN 1979 AND NOW OPERATES 13 BOTTLING PLANTS AND TWO CONCENTRATEMANUFACTURING FACILITIES IN CHINA WE REALIZED THAT IF WE WANTED TO ACHIEVE UNFETTERED GROWTH WE NEEDED TO ENTIRELY LOCALIZE OUR OPERATIONS SAYS ROUALEYN FENTONMAY THE COMPANY'S DIRECTOR OF OPERATIONS AND THE FORMER HEAD OF ITS CHINA DIVISION COKE THIS YEAR HAS GONE A STEP FURTHER LOCALIZING ITS ADVERTISING OPERATIONS FOR THE FIRST TIME IT PRODUCED A TELEVISION AD CAMPAIGN ENTIRELY IN CHINA THE SPOTS FEATURE A MONTAGE OF ATTRACTIVE COKESWIGGING CHINESE INCLUDING SMILING DOCKWORKERS HEADING HOME A THIRTYSOMETHING ENTREPRENEUR WHO HAS JUST MISSED HIS BUS AND A CHINESE FAMILY CELEBRATING AT A WESTERNSTYLE WEDDING THE COMPANY'S EFFORTS APPEAR TO BE PAYING OFF SALES OF COCACOLA IN CHINA HAVE JUMPED AN AVERAGE OF 25 FOR EACH OF THE PAST FIVE YEARS ACCORDING TO THE SOFTDRINK GIANT THE COMPANY SOLD 75 MILLION CASES OF COKE SPRITE AND FANTA NATIONWIDE LAST YEAR AND CONTROLS 12 OF THE MARKET THOUGH THAT VOLUME STILL PALES IN COMPARISON WITH THE EIGHT BILLION CASES OF SOFT DRINKS COKE SELLS EACH YEAR IN THE US FOR SOME MARKETERS PACKAGING THAT TAKES INTO ACCOUNT CHINESE CUSTOMS AND VALUES MAKES ALL THE DIFFERENCE HASBRO INC HAS A HIT ON ITS HANDS WITH GI JOE BUT IT HAS GIVEN THE US ARMY DOLL A NEW IDENTITY AS AN INTERNATIONAL HERO WHO SERVES ON THE SPECIAL TROOPERS ARMY TEAM THE RED WHITE AND BLUE CARDBOARD BOX IN WHICH HE IS STATIONED IN THE US HAS BEEN REPLACED BY ONE WITH THE COLORS OF CHINA'S PEOPLE'S LIBERATION ARMY CAMOUFLAGE GREEN AND COMMUNIST PARTY RED NESTLE SA TOO TWEAKED ITS PACKAGING TO SUIT LOCAL TASTES BECAUSE GIFT GIVING IS AN INTEGRAL PART OF CHINESE LIFE NESTLE SELLS ITS NESCAFE INSTANT COFFEE IN GOLDANDRED GIFT BOXES GOLD AND RED CONNOTE HAPPINESS AND PROSPERITY IN CHINESE CULTURE NESTLE EXECUTIVES SAY SALES OF GIFT PACKAGES REPRESENT 50 OF NESCAFE'S ANNUAL SALES AND 80 OF SALES DURING THE MIDAUTUMN AND SPRING FESTIVALS WHEN GIFT GIVING IS AT ITS PEAK SUCCESS IN CHINA'S BOOMING CONSUMER MARKET ALSO MEANS NEVER TAKING ANYTHING FOR GRANTED HOW DO YOU PREPARE A CUP OF INSTANT COFFEE ANYWAY FOR THE UNINITIATED CHINESE CONSUMER THE PROCESS IS DEMONSTRATED IN TELEVISION ADVERTISING AND THE POINT IS DRIVEN HOME THROUGH PACKAGING NESCAFE AND PHILIP MORRIS COS' MAXWELL HOUSE FOR EXAMPLE BOTH SELL INSTANT COFFEE IN PREMIXED PACKETS THAT INCLUDE CREAM AND SUGAR SLICK PACKAGING AND ADVERTISING HOWEVER CAN'T MASK ONE MAJOR SHORTCOMING SERVICE AND MERCHANDISING IN CHINA STILL FALL FAR SHORT OF INTERNATIONAL STANDARDS SOME MARKETERS ARE TACKLING THE PROBLEM BY SIMPLY SETTING UP SHOP ON THEIR OWN AND SUCH COMPANIES AS PROCTER & GAMBLE CO JOHNSON & JOHNSON AND SHISEIDO SELL TO STATERUN STORES BUT HIRE THEIR OWN SALES STAFF THEN THERE'S WALT DISNEY WHICH IN CONJUNCTION WITH ITS LOCAL RETAIL LICENSEE HAS OPENED 60 MICKEY'S CORNER SHOPS IN DEPARTMENT STORES ACROSS THE COUNTRY THE SHOPS STAFFED BY DISNEY HIRES SELL EVERYTHING FROM SHAMPOO TO SHOES TO MICKEY MOUSE COMIC BOOKS BUT TO DISNEY'S SURPRISE MICKEY IS GETTING PLENTY OF COMPETITION FROM AN UNLIKELY SOURCE FELLOW DISNEY ICON DONALD DUCK WHO IS SO POPULAR THAT MORE THAN A BILLION PIECES OF DONALD DUCK BUBBLE GUM HAVE BEEN SOLD IN CHINA IN LESS THAN A YEAR DONALD'S IRASCIBLE PERSONALITY IS WELL SUITED TO CHINESE TASTES SAYS DISNEY'S MR FEENIE DONALD IS LESS OF A DUCK AND MORE OF AN UNCLE IN THE CHINESE FAMILY STRUCTURE PEOPLE LOOK AT DONALD AND THEY CAN SEE THEIR OWN RELATIVES MS GOLL BASED IN HONG KONG AND MS ONO BASED IN TOKYO ARE STAFF REPORTERS FOR THE WALL STREET JOURNAL 9312100043 931210 CHINA A SPECIAL REPORT READING THE MARKET BUYING POWER THE MARKET FOR PRODUCTS IS BIG BUT NOT QUITE SO LARGE AS YOU THOUGHT BY LAURENCE ZUCKERMAN SHANGHAI CHINA YES THERE ARE 117 BILLION PEOPLE IN CHINA BUT ARE THEY ALL GOING TO BUY YOUR PRODUCT THE CURRENT MARKET FOR CONSUMER PRODUCTS IS CERTAINLY A FRACTION OF THE POPULATION EXACTLY HOW BIG A FRACTION NO ONE KNOWS THE STATISTICS CHINA COMPILES ARE GARBAGE IN GARBAGE OUT SAYS RANJAN PAL REGIONAL ECONOMIST FOR JARDINE FLEMING BROKING LTD IN HONG KONG GOD ONLY KNOWS HOW THEY COME UP WITH THEIR OWN GDP NUMBER UNLIKE OTHER DEVELOPING COUNTRIES IN ASIA CHINA DOESN'T PUBLISH A FULL SET OF NATIONAL PRODUCTION STATISTICS THAT MAKES IT HARD FOR INDEPENDENT ECONOMISTS TO EVALUATE THE GOVERNMENT'S ESTIMATES OF GROSS DOMESTIC PRODUCT THE SUM OF CHINA'S PRODUCTION OF GOODS AND SERVICES AND THE BASIS FOR ESTIMATES OF PERCAPITA INCOME OR TO OFFER THEIR OWN EDUCATED GUESSES MOREOVER CHINA IS HARDLY A MONOLITHIC MARKET IN EITHER ITS TASTES WHICH VARY WIDELY FROM REGION TO REGION OR ITS WORKINGS THE CREAKY INFRASTRUCTURE MAKES IT VIRTUALLY IMPOSSIBLE TO SELL PRODUCTS NATIONWIDE WITHOUT A COMPLEX WEB OF DISTRIBUTION ALLIANCES THAT DOESN'T MEAN THERE AREN'T BIG SALES TO BE MADE IN CHINA PROCTER & GAMBLE CO IS SELLING TRUCKLOADS OF HEAD & SHOULDERS SHAMPOO IN GUANGDONG AND UNILEVER GROUP'S LUX IS THE TOPSELLING SOAP IN SHANGHAI NOR IS THE COUNTRY A COMPLETE BLACK BOX EVERY TIME A WESTERN COMPANY MAKES A SALE IN CHINA IT ADDS TO THE GROWING BODY OF MARKET RESEARCH ON THE PLACE INCREASINGLY WE KNOW QUITE A BIT ABOUT CHINESE CONSUMERS SAYS RON CROMIE GENERAL MANAGER OF THE ADVERTISING AGENCY J WALTER THOMPSON CHINA IN HONG KONG WE DON'T KNOW AS MUCH AS WE DO ABOUT AMERICAN CONSUMERS BUT WE KNOW A LOT STILL THE CHINESE ECONOMY IS GROWING SO FAST AND TASTES ARE CHANGING SO QUICKLY THAT EVEN THE LATEST RESEARCH HAS A SHORT SHELF LIFE TWO YEARS AGO CHINESE CONSUMERS NEVER WOULD HAVE THOUGHT THEY WOULD BE BUYING WHAT THEY ARE BUYING TODAY SAYS ALAIN LAROCQUE A CHINA SPECIALIST AT TECHNOMIC CONSULTANTS INTERNATIONAL IN HONG KONG MR LAROCQUE TELLS HIS CLIENTS THAT INSTEAD OF LOOKING AT SURVEYS THEY SHOULD EXAMINE PATTERNS OF CONSUMPTION IN OTHER ASIAN COUNTRIES THAT HAVE ALREADY PASSED THROUGH CHINA'S CURRENT STAGE OF DEVELOPMENT IN TRYING TO GAUGE THE CHINESE MARKET VIRTUALLY ALL ECONOMISTS FIRST DISCOUNT THE 30 OF PEOPLE WHO LIVE IN AREAS OFFICIALLY DESIGNATED AS RURAL THEY'RE TOO POOR AND TOO HARD TO REACH THAT LEAVES THE INHABITANTS OF 479 OFFICIAL URBAN ZONES MANY OF WHICH ARE ACTUALLY QUITE RURAL SOME EXPERTS SAY THAT AMONG THESE AREAS THE BULK OF THE MARKET LIES IN THE 31 CITIES WITH POPULATIONS OF A MILLION OR MORE WHICH THEY ESTIMATE MAKES FOR A TOTAL OF MORE THAN 62 MILLION PEOPLE BUT OTHERS ARGUE THAT THE COUNTRY NOW CONTAINS AS MANY AS 100 MILLION RELATIVELY AFFLUENT HOUSEHOLDS A NUMBER ROUGHLY EQUAL TO THE SIZE OF THE US MARKET FIGURING OUT THE SPENDING POWER OF THESE CONSUMERS IS EVEN TOUGHER BECAUSE CHINA'S CURRENCY HAS BEEN DEVALUED AGAINST THE DOLLAR OVER THE PAST 15 YEARS THE COUNTRY'S PERCAPITA INCOME NOW THE EQUIVALENT OF 380 A YEAR HAS ACTUALLY DROPPED IN CONSTANT 1978 DOLLARS HOWEVER THE CURRENT CONSUMPTION BOOM SUGGESTS THAT FIGURE IS A FAR CRY FROM REALITY TO COME UP WITH A MORE ACCURATE NUMBER THE INTERNATIONAL MONETARY FUND THIS YEAR BEGAN ESTIMATING CHINA'S PERCAPITA INCOME BASED ON PURCHASINGPOWER PARITY OR THE EQUIVALENT IN DOLLAR TERMS OF WHAT THE CHINESE YUAN ACTUALLY BUYS THE IMF PEGGED CHINA'S PERCAPITA INCOME AT 1300 ANNUALLY CATAPULTING THE NATION FROM THE WORLD'S 11THLARGEST ECONOMY TO NO 3 BUT THE IMF ESTIMATE IS STILL MUCH LOWER THAN OTHER ESTIMATES BASED ON PURCHASINGPOWER PARITY ACCORDING TO THESE OTHER ESTIMATES PUT FORTH BY ACADEMICS AND THE WORLD BANK CHINA IS THE WORLD'S SECONDLARGEST ECONOMY SMALLER THAN THE US BUT LARGER THAN JAPAN THE BEST WAY FOR ANYONE TO JUDGE IS TO TRAVEL TO GUANGZHOU AND LOOK AT WHAT PEOPLE ARE BUYING AND WHAT THEY ARE WEARING SAYS J WALTER THOMPSON'S MR CROMIE DESCRIBING HIS OWN INFORMAL MEASURE OF PURCHASING POWER IT DOESN'T FEEL LIKE NORTH KOREA IT DOESN'T FEEL LIKE VIETNAM IT FEELS LIKE THAILAND ANOTHER COMPLICATING FACTOR CHINA'S HALFREFORMED COMMUNIST REGIME STILL LETS PEOPLE PAY ONLY TOKEN AMOUNTS FOR HOUSING TAXES AND MEDICAL CARE FREEING A BIG CHUNK OF TAKEHOME PAY TO BUY BURGERS TELEVISIONS AND COSMETICS CHINA'S AVERAGE INCOME MAY BE LOWER THAN THAT OF THAILAND BUT THE AVERAGE CHINESE MAY HAVE AS MUCH MONEY TO SPEND HOW LONG WILL THIS HYBRID SYSTEM LAST IN CHINA THE GOVERNMENT HAS ALREADY SAID IT PLANS TO PRIVATIZE THE HOUSING MARKET AND OVERHAUL THE TAX SYSTEM THAT COULD SLASH THE AMOUNT OF MONEY LEFT FOR DISCRETIONARY SPENDING AND MAKE CHINESE THINK TWICE BEFORE BUYING THAT NEW CAMCORDER MR ZUCKERMAN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HONG KONG BUREAU 9312100042 931210 CHINA A SPECIAL REPORT QUESTIONS & ANSWERS WHAT WHY AND HOW FOR THE HOST OF QUESTIONS THAT WILL NO DOUBT SPRING TO MIND SOME CONSIDERED ANSWERS BY JOHN BUSSEY AND JAMES MCGREGOR STILL UNSURE ABOUT WHAT TO MAKE OF CHINA LITTLE WONDER THERE ARE COUNTLESS ISSUES BIG AND SMALL THAT ANY BUSINESSPERSON HAS TO CONSIDER WHEN MULLING OVER A MOVE INTO THE COUNTRY WE CAN'T COVER EVERY QUESTION BUT WHAT FOLLOW ARE SOME OF THE MOST COMMON ONES THE ANSWERS TO THEM SHOULD BEGIN TO GIVE YOU AN UNDERSTANDING OF WHAT DOING BUSINESS IN CHINA ENTAILS IF I WANT TO DO BUSINESS IN CHINA WHAT SHOULD MY FIRST STEP BE FIND SOMEONE WHO KNOWS SOMETHING ABOUT CHINA TO BE YOUR GUIDE READ UP ON CASE HISTORIES AND TALK TO OTHER BUSINESSPEOPLE WHO HAVE BEEN THERE IT'S ALWAYS EASIER TO LEARN FROM THEIR MISTAKES IF YOU HIRE A CONSULTANT CHECK CANDIDATES OUT CAREFULLY MANY WHO TALK A GOOD GAME KNOW LITTLE ABOUT OPERATING IN FASTCHANGING CHINA SHOULD I JUST EXPORT TO CHINA OR DO I NEED TO SET UP A FACTORY THERE IF YOU WANT ANY LONGTERM BUSINESS IN CHINA YOU'LL PROBABLY HAVE TO START MANUFACTURING THERE BEFORE LONG OTHERWISE ONCE THE CHINESE BUREAUCRATS SEE YOUR PRODUCT SELLING WELL THEY'LL FIGURE OUT A WAY TO MAKE IT THEMSELVES BESIDES CHINA IS SLOWLY OPENING ITS MARKET TO COMPANIES THAT WANT TO MAKE THINGS THERE IF I GO TO CHINA DO I NEED A CHINESE PARTNER OR CAN I OWN AND OPERATE MY OWN FACTORY YOU CAN DO EITHER IF YOU NEED TO HOOK INTO THE CHINESE STATE SUPPLY SYSTEM FOR COAL OR STEEL FOR EXAMPLE YOU'LL PROBABLY WANT TO JOIN WITH A STATE ENTERPRISE THAT'S BECAUSE YOU'LL NEED THE ACCESS THE ENTERPRISE OFFERS TO THE PLANNED PART OF THE ECONOMY BUT IF YOU CAN DO WITHOUT A LOCAL PARTNER IF SAY YOU'RE IN LIGHT MANUFACTURING AND PLAN TO IMPORT PARTS ASSEMBLE THEM AND EXPORT THE FINISHED PRODUCT YOU MAY BE BETTER OFF ON YOUR OWN OFTEN A CHINESE PARTNER IS A BIG HEADACHE CAN I HIRE AND FIRE IF YOU'RE MANUFACTURING IN CHINA OR ARE INVOLVED IN A JOINT VENTURE YOU HAVE THE LEGAL POWER TO HIRE AND FIRE IN REALITY IF YOUR PARTNER HAS LOTS OF AUNTS AND UNCLES OR HAS UNEMPLOYED WORKERS ON HIS OWN PAYROLL YOU MAY FIND YOURSELF HAVING TO ACCEPT PEOPLE YOU DON'T WANT EVEN IF YOU OWN YOUR OWN BUSINESS IN CHINA YOU'LL GET REQUESTS FROM YOUR CHINESE SUPPLIERS OR FROM LOCAL OFFICIALS ASKING YOU TO EMPLOY THEIR FRIENDS THIS REMEMBER IS A SOCIETY BASED ON RELATIONSHIPS IF YOU JUST ESTABLISH A REPRESENTATIVE OFFICE IN CHINA SUCH AS A SALES BRANCH OR A LAW OFFICE THEN YOU MUST HIRE YOUR WORKERS FROM THE GOVERNMENT'S FOREIGN ENTERPRISE SERVICE CORP YOU PAY THE AGENCY THE MONTHLY WAGE FOR THE EMPLOYEE IT GIVES THE WORKER ROUGHLY 40 AND KEEPS THE REST YOU'LL PROBABLY HAVE TO PAY THE EMPLOYEE A SECONDARY WAGE TO MOTIVATE HIM OR HER TO WORK SOUND UNFAIR FOR WORKERS FARMED OUT TO DIPLOMATS THE EMPLOYEES GET ONLY 15 BACK FROM THE GOVERNMENT WHERE SHOULD I LOCATE MY PLANT OR JOINT VENTURE THE ADVANTAGE OF GOING TO THE ESTABLISHED PLACES FOR FOREIGN INVESTORS IS THAT LOCAL OFFICIALS ARE PROBABLY ACCUSTOMED TO THE LOGIC OF DOING REAL BUSINESS BUT THE WAGES AND RENTS CAN BE HIGH AND THE GOVERNMENT OFTEN GOUGES YOU ON FEES AND OTHER CHARGES YOU MAY BE MORE APPRECIATED IN LOCALES WITH LESS FOREIGN INVESTMENT BUT ONCE YOU HAND OVER YOUR MONEY ALL THE PROMISES OF SPECIAL TREATMENT MAY DISAPPEAR WHAT YOU VIEW AS LONGTERM CAPITAL INVESTMENT MAY BE SHORTTERM PROFIT TO YOUR PARTNERS I'M THE CHIEF EXECUTIVE OFFICER SHOULD I GO OVER THERE AND TWIST SOME ARMS TO GET THE DEAL I WANT IT'S USUALLY BEST TO WAIT UNTIL THE DEAL IS READY FOR YOU TO SIGN BECAUSE CHINA IS HIERARCHICAL WHEN THE GREAT LEADER COMES IN AND STARTS HYPERVENTILATING OVER CHINA'S HUGE CONSUMER MARKET THE CHINESE KNOW THEY'VE GOT A SWEET DEAL COMING THEY KNOW YOUR NEGOTIATORS ARE UNDER ORDERS FROM ABOVE TO WORK SOMETHING OUT SO THEY FIGURE THAT TIME IS ON THEIR SIDE THE CHINESE WILL WAIT YOU OUT I'M IN THE SERVICE INDUSTRY IS CHINA OPEN TO ME A WINDOW OF OPPORTUNITY IS OPEN NOW BUT HOW LONG IT WILL STAY OPEN IS UNCLEAR MANY BANKS AND ACCOUNTING AND LAW FIRMS HAVE RECENTLY BEEN ALLOWED TO SET UP OPERATIONS CHINA IS ALSO LETTING SOME FOREIGN RETAILERS OPEN UP SHOP BUT BEIJING IN THE LONG RUN DOESN'T WANT TO CEDE THE SERVICE INDUSTRY FOR ITS BIG CONSUMER MARKET TO FOREIGNERS ONCE CHINA GETS THE KNOWHOW IT NEEDS IT MAY TRY TO CLOSE THE WINDOW CAN I COUNT ON THE US GOVERNMENT TO HELP ME THE US GOVERNMENT HAS LIMITED SERVICES BUT IT CAN OFFER PLENTY OF ADVICE THE COMMERCE DEPARTMENT HAS DONE CONSIDERABLE RESEARCH ON MARKETS AND OPPORTUNITIES IN CHINA EMBASSY AND CONSULAR OFFICERS REGULARLY BRIEF VISITING BUSINESSPEOPLE BUT WATCH OUT FOR MIXED SIGNALS US TRADE POLICY AND FOREIGN POLICY SUCH AS HUMANRIGHTS PRONOUNCEMENTS OFTEN CONFLICT DESPITE THE RAGING TRADE BETWEEN THE NATIONS AND THE FLOOD OF INVESTMENT CHINAUS RELATIONS REMAIN POLITICALLY CHARGED IF I SEND IN SOME OF MY AMERICAN EMPLOYEES WITH THEIR FAMILIES WHAT KIND OF LIFE WILL THEY HAVE THERE EXPENSIVE IT COSTS A MINT TO KEEP EXPATRIATES IN CHINA BUT YOU HAVE LITTLE CHOICE IF YOU TRY TO RUN SOMETHING THERE WITHOUT AT LEAST A COUPLE OF YOUR OWN PEOPLE IN KEY POSITIONS YOU WILL PROBABLY FAIL THE BIG CITIES BEIJING SHANGHAI AND GUANGZHOU HAVE CROWDED INTERNATIONAL SCHOOLS EXPENSIVE HOUSING AND LOTS OF STRESS SIMPLE CHORES SUCH AS MAILING A LETTER CAN LEAVE PEOPLE READY TO TEAR THEIR HAIR OUT THESE DAYS MANY FOREIGN PRODUCTS INCLUDING PAMPERS AND CORNFLAKES ARE AVAILABLE BUT AT A STIFF PRICE MEDICAL CARE IS IMPROVING THOUGH FOR MOST THINGS MORE COMPLICATED THAN A ROUTINE COLD OR TOOTHACHE YOU'LL PROBABLY WANT TO GO TO HONG KONG AS FOR DAILY LIFE THIS IS CHINA BOTH FASCINATING AND PERPLEXING IF YOUR EMPLOYEES ARE ADVENTUROUS AND INTERESTED IN EXPLORING ANOTHER CULTURE CHINA CAN BE A TREMENDOUS EXPERIENCE IF THEY ARE HOMEBODIES DON'T EVEN THINK ABOUT IT WHAT ARE SOME OTHER CHARACTERISTICS I SHOULD LOOK FOR IN THE MAIN HOMEOFFICE EMPLOYEE I WOULD SEND TO CHINA A SENSE OF HUMOR AND PLENTY OF PATIENCE THE PERSON WHO PUTS HIS FIST THROUGH THE WALL WHEN THE FAX MACHINE IS ON THE BLINK WOULD LAST ABOUT THREE MINUTES IN CHINA THE MANAGER MUST BE DECISIVE FLEXIBLE AND ABLE TO COPE WITH GREAT STRESS ODDBALLS SOMETIMES DO MUCH BETTER THAN THE STRAITLACED ONCE YOU HAVE SOMEBODY THERE GIVE THEM LOTS OF DECISIONMAKING POWER AND FLEXIBILITY WHAT ABOUT THE CULTURE SHOULD I APPOINT A CHINESE TO RUN MY FACTORY OR A WESTERNER MOST LIKELY NOT A LOCAL CHINESE THE MANAGEMENT EXPERTISE ISN'T QUITE THERE YET TO RUN A BUSINESS AS FOR A FOREIGNER IF YOU BRING IN AN OVERSEAS CHINESE AS ETHNIC CHINESE LIVING OUTSIDE CHINA ARE KNOWN HE OR SHE WILL UNDERSTAND THE CULTURE BUT THE LOCAL EMPLOYEES MAY FEEL LOTS OF JEALOUSY YOU MAY HAVE MORE LUCK JUST GOING WITH A NONCHINESE FOREIGNER THE RIGHT PERSON AND PERSONALITY CAN BE MORE IMPORTANT THAN RACE OR EVEN LANGUAGE ABILITIES CAN I DO BUSINESS WITHOUT BRIBERY YOU NOT ONLY CAN BUT SHOULD IT WILL BE TOUGH HOWEVER ONCE YOU START PAYING PEOPLE HOW WILL YOU STOP CHINESE OFFICIALS WILL VIEW YOU AS THEIR PERSONAL CASH MACHINE BESIDES US LAW PROHIBITS BRIBES BUT DO YOU GIVE GIFTS AND PROVIDE SPECIAL FAVORS YOU BET HOW DOES THAT WORK YOU MAY FIND YOURSELF PAYING FOR A LARGE DELEGATION OF LOCAL OFFICIALS AND YOUR JOINTVENTURE PARTNERS TO MAKE A BRIEF INSPECTION TRIP TO YOUR PLANT IN TOPEKA OF COURSE THEY MAY HAVE LONG STOPOVERS ON THE WAY IN SUCH KEY SPOTS AS DISNEYLAND OR NEW YORK YOU MAY BE EXPECTED TO PROVIDE COMPANY CARS FOR YOUR PARTNERS AND YOU MAY GET REQUESTS FOR DONATIONS TO LOCAL AGENCIES THAT IF IGNORED COULD HAMPER YOUR SUCCESS BUT DO YOU HAND OUT CASH ABSOLUTELY NOT WILL LOCAL OFFICIALS BE A HINDRANCE THEY EASILY CAN BE YOUR BEST DEFENSE CULTIVATING RELATIONSHIPS REGULAR BANQUETS WITH IMPORTANT LOCAL OFFICIALS ARE A GOOD IDEA AND SO ARE SMALL FAVORS AND GIFTS ONE COKE BOTTLER REGULARLY SENDS CASES OF ITS PRODUCTS TO REFRESH THE PARCHED PALATES OF IMPORTANT LOCAL BUREAUCRATS WHEN THE LOCAL ROADWAY DIRECTOR COMES IN LOOKING FOR A SPECIAL HIGHWAYMAINTENANCE FEE YOU WOULD BE FOOLISH TO SEND HIM PACKING YOU MAY FIND ROADBLOCKS SURROUNDING YOUR PLANT WHILE ROADWAY INSPECTORS CARRY OUT IMPORTANT SURVEYING BUT IF YOU TOO EASILY PAY SUCH FEES YOU WILL FIND BUREAUCRATS LINING UP AT YOUR DOOR IT IS BEST TO FIND OUT WHO THE KEY LOCAL POWER PLAYERS ARE AND KEEP THEM ON YOUR SIDE WHAT IS THE TAX STRUCTURE FOR FOREIGN VENTURES IN CHINA OFFICIALLY THE GENERAL RATE IS 33 IT'S 24 IN SOME SELECTED CITIES AND 15 IN THE FIVE SPECIAL ECONOMIC ZONES IN REALITY IT'S ALL MIXED UP MANY PLACES USUALLY WITHOUT CENTRALGOVERNMENT APPROVAL WILL OFFER THE 15 RATE IN AN INDUSTRIAL AREA OR FOR A PARTICULARLY SOUGHTAFTER BUSINESS ALL OF THIS IS SUBJECT TO CHANGE BECAUSE BEIJING IS CONFRONTING A HUGE BUDGET DEFICIT AND STAGNANT TAX REVENUE WILL THE COMMUNIST PARTY HAVE A UNIT IN MY FACTORY AND IF SO WHAT WILL ITS ROLE BE IN MOST PLACES THE GOVERNMENT DOES ITS BEST TO HAVE A COMMUNIST PARTY UNIT IN YOUR PLANT IN SOME FACTORIES THE PARTY CHIEF IS A BIG HELP HE MIGHT ACT LIKE A COOPERATIVE LABORUNION PRESIDENT WHO WILL PRESSURE YOU FOR BETTER WAGES AND HOUSING BUT WILL ALSO INTERVENE WITH GREAT AUTHORITY WHEN WORKERS ARE CAUSING PROBLEMS FOR YOU IN OTHER CASES THE PARTY CHIEF CAN BE A TOTAL NUISANCE CAN I SET UP MY OWN SALES NETWORK YOU CAN TRY BUT UNLESS YOUR BUSINESS IS HUGE YOU WILL END UP WITH A CHINESE PARTNER AND AT LEAST SOME OF YOUR DISTRIBUTION GOING THROUGH THE STATE SYSTEM CAN I JUST GO TO CHINA AND BUY AN EXISTING COMPANY AS I HAVE IN THE US SURE BUT WHY WOULD YOU WANT TO YOU MAY FIND MORE PEOPLE ARE SITTING RETIRED IN THE COMPANY APARTMENTS THAN ARE WORKING YOU MAY FIND YOURSELF THE OWNER OF A DILAPIDATED GRADE SCHOOL CLINIC AND OTHER ODD PROPERTIES ATTACHED TO THE COMPANY THESE THINGS WILL HAVE BEEN SURVIVING ON SUBSIDIES THAT DISAPPEAR THE DAY YOU BUY THE ONLY BALANCING FACTOR IS THAT YOU MAY GET A VALUABLE PIECE OF REAL ESTATE DO THE CHINESE LIKE FOREIGN PRODUCTS ABSOLUTELY SOME LOCAL MANUFACTURERS EVEN PUT ENGLISH ON THEIR LABELS AND PASS THEM OFF AS FOREIGN HOW BAD ARE THE QUALITYCONTROL PROBLEMS IN CHINA QUALITY ISN'T SOMETHING ENGENDERED BY 45 YEARS OF COMMUNISM AND STATE OWNERSHIP IF YOU WANT QUALITY YOU MUST BE EVER VIGILANT CAN I TRAIN SOMEONE TO HANDLE THAT YES CHINA HAS A LOT OF WELLEDUCATED ENGINEERS BUT ONCE YOU FIND RESPONSIBLE TRUSTWORTHY EMPLOYEES YOU HAVE TO DO EVERYTHING TO KEEP THEM ARE FOREIGN COMPANIES MAKING MONEY IN CHINA MANY ARE BUT THEY AREN'T WILLING TO ADMIT IT ONCE THEY DO THEY'RE LIKE A SALT LICK IN A DEER PARK EVERY BUREAUCRAT WITHIN SNIFFING DISTANCE STARTS TAKING REGULAR SWIPES AT THEM WITH SPECIAL TAXES AND FEES AIMED AT MAKING SURE THEIR PROFITS ARE SHARED WHAT DO I DO ABOUT GETTING SUPPLIERS THIS IS ANOTHER AREA YOU HAVE TO CULTIVATE MCDONALD'S CORP SPENT YEARS ESTABLISHING POTATO FARMS AND BEEF RANCHES IN CHINA BEFORE IT BEGAN SELLING BURGERS THERE A LARGE NUMBER OF PLANTS START OUT BY IMPORTING MANY OF THEIR INGREDIENTS AND PARTS AND THEN FINDING LOCAL SUPPLIERS IF POSSIBLE THIS HAS DRAWBACKS HOWEVER CONSIDER THE AUTO INDUSTRY THE OPTIMAL TIME TO BUY A CAR FROM A JOINTVENTURE FACTORY IN CHINA IS ABOUT A YEAR AFTER THE PLANT OPENS THAT'S BECAUSE THE WORKERS HAVE HAD ENOUGH PRACTICE ASSEMBLING THE IMPORTED PARTS TO ENSURE THAT THE CARS HOLD TOGETHER PRETTY WELL MOREOVER THE LOCALIZATION OF PARTS HASN'T GROWN TOO EXTENSIVE ONCE THE CARS HAVE MANY LOCAL PARTS YOU WILL END UP COMMUTING TO THE REPAIR SHOP BEIJING JEEP IS A CASE IN POINT THIS CHRYSLER CORP JOINT VENTURE HAS BEEN MAKING CHEROKEE WAGONS IN CHINA FOR 10 YEARS AND PARTS LOCALIZATION HAS BECOME QUITE EXTENSIVE RECENTLY HOWEVER BEIJING JEEP STARTED BRINGING IN AN UPGRADED CHEROKEE WITH ALL IMPORTED PARTS IT'S SELLING LIKE HOTCAKES HOW DO I GET DATA ON MY MARKET IN CHINA GOOD LUCK THIS IS THE LAND OF IMPERFECT INFORMATION STATISTICS ARE SUSPECT AND MARKET RESEARCH IS SKIMPY FIRST TRY YOUR EMBASSY THEN GO TO THE CHINESE STATISTICAL BUREAU FINALLY HEAD FOR THE GROWING POOL OF MARKETRESEARCH OUTFITS IN HONG KONG FINDING YOUR MARKET MAY BE LARGELY A MATTER OF EDUCATION BECAUSE CHINA HAS HAD SO FEW CONSUMER GOODS UNTIL RECENTLY CUSTOMERS DON'T ALWAYS KNOW WHAT YOUR PRODUCT IS TAMBRANDS INC FOR EXAMPLE HAD TO HIRE A MEDICAL TEAM TO TRAVEL AROUND AND TEACH CONSUMERS ABOUT TAMPONS I HEAR THAT DOING BUSINESS IS EXPENSIVE IN CHINA IT IS BECAUSE THE GOLD RUSH HAS RAISED LAND AND RENT PRICES TO ABSURD LEVELS THOUGH MOSTLY IN THE MAJOR COMMERCIAL CITIES WAGES ARE CHEAP BUT THE ACCOMPANYING FEES CAN BE A KILLER ONE WAY TO SAVE IS TO LOOK AROUND FOR ALTERNATIVE SITES FOR YOUR PLANT OR OFFICE THOSE PLACES SLIGHTLY OFF THE BEATEN TRACK THAT HAVE MAYORS WHO ARE THIRSTING FOR INVESTMENT BUT THAT AREN'T SO FAR AWAY AS TO MAKE TRANSPORTATION TROUBLESOME AND DON'T ASSUME YOU NEED ALL THE ACCOUTREMENTS OF THE WEST SOMETIMES IT'S EASIER TO BICYCLE TO AN APPOINTMENT 30 BLOCKS AWAY THAN TO TAKE THE COMPANY CAR AND GET STUCK IN TRAFFIC FOR AN HOUR I KEEP HEARING IT TAKES YEARS OF CAREFUL GROWTH TO MAKE MONEY IN CHINA ISN'T THERE A FASTER WAY NO NOT UNLESS YOU'RE SMUGGLING CHINESE REFUGEES TO AMERICA TAKE OUR ADVICE IF YOU'RE THE IMPATIENT TYPE STAY IN DULUTH WHAT SHOULD MY LONGTERM GOAL BE EXPORTING FROM CHINA OR SELLING IN THE LOCAL MARKET BOTH YOU'RE CRAZY NOT TO TRY TO TAP INTO THIS GROWING CUSTOMER POOL BUT IT'S STILL AN AUTHORITARIAN GOVERNMENT AND THINGS COULD GO WRONG YOU HAVE TO BALANCE YOUR RISKS AND WORRY ABOUT EARNING FOREIGN CURRENCY EXPORT IF YOU CAN AND WORK LIKE HECK TO DEVELOP THE LOCAL MARKET SPEAKING OF FOREIGN EXCHANGE I HEAR THAT THE LOCAL CURRENCY SITUATION IS A NIGHTMARE YOU'RE RIGHT LET'S WADE THROUGH THIS THE OFFICIAL CURRENCY IS THE RENMINBI ABBREVIATED RMB IT'S ALSO CALLED THE YUAN THEN THERE'S THE FOREIGNEXCHANGE CERTIFICATE OR FEC THIS IS WHAT FOREIGNERS ARE SUPPOSED TO USE IN CHINA IN BANKS AND HOTELS YOU CAN EXCHANGE YOUR DOLLARS ONLY FOR FEC THE EXCHANGE TAKES PLACE AT THE OFFICIAL RATE NOW 577 FEC TO THE DOLLAR YOU CAN USE FEC JUST LIKE RENMINBI TO BUY YOUR STEAMED DUMPLINGS HOWEVER YOU'D BE NUTS TO DO SO BETTER TO TAKE YOUR DOLLARS OUTSIDE THE HOTEL DOORS AND GET THE BLACKMARKET RATE FOR RENMINBI NOW A LITTLE MORE THAN EIGHT TO THE DOLLAR THE PROBLEM THOUGH IS THAT YOU CAN'T LEGALLY RECONVERT THESE RENMINBI TO DOLLARS WHEN YOU LEAVE THE COUNTRY YOU CAN RECONVERT YOUR FEC TO DOLLARS LEGALLY MOST FOREIGNERS AREN'T SUPPOSED TO HAVE OR USE RENMINBI BUT THAT'S A RULE QUICKLY GOING BY THE BOARDS MORE AND MORE JOINT VENTURES DEAL IN RENMINBI BECAUSE THEY'RE SELLING IN CHINA THE WHOLE SYSTEM HAS BECOME A MUDDLE MUDDLE OR NOT CAN I GET MY PROFITS OUT MOST OF THE TIME YES CHINA HAS ESTABLISHED SOCALLED SWAP MARKETS IN MOST LARGE CITIES IN THESE PLACES COMPANIES THAT HAVE RECEIVED GOVERNMENT APPROVAL CAN TRADE THEIR RENMINBI FOR FOREIGN CURRENCY THE GOVERNMENT HOWEVER SOMETIMES LIKES TO CONTROL THE RATE IN THESE MARKETS WHEN THOSE CONTROLS ARE TOO TIGHT THE BLACK MARKET BECOMES THE ONLY PLACE TO GET FOREIGN CURRENCY ARE BUSINESS DEALS IN CHINA GOVERNED BY THE RULE OF LAW ON PAPER CHINA HAS AN ORDERLY LEGAL SYSTEM IN REALITY THE SYSTEM RUNS ON PERSONAL RELATIONSHIPS AND POWER POLITICS THUS THE MOST IMPORTANT THING IS TO FIND A GOOD RELATIONSHIP NOT A GOOD LAWYER AN ARBITRATION COMMISSION HANDLES SOME BUSINESS DISPUTES IN CHINA IT BEATS GOING THROUGH THE COURTS MEANWHILE CHINA IS BUILDING A DETAILED BODY OF LAW ON COMMERCIAL AFFAIRS AND ONE DAY MIGHT EVEN USE IT DOES CHINA HAVE REGULATIONS GOVERNING INTELLECTUALPROPERTY RIGHTS THE US AND CHINA HAVE AN AGREEMENT THAT PROTECTS COPYRIGHTS AND PATENTS BUT AS THE US EMBASSY NOTES WITH SOME UNDERSTATEMENT PROCEDURES FOR ENFORCEMENT ARE STILL UNCLEAR REMEMBER IN THE CHINESE ART WORLD COPYING IS AN ART IN ITSELF DOES CHINA HAVE TRADEMARK PROTECTION NOT REALLY IN CHINA THE FIRST TO REGISTER NOT THE FIRST TO USE OWNS THE TRADEMARK EVEN IT IT HAS BEEN AROUND FOR SOME TIME IS MY PHONE GOING TO BE TAPPED IN CHINA POSSIBLY BUT WHO CARES IN THE OLD DAYS THEY TAPPED BECAUSE THEY WERE SCARED TODAY THEY MAY TAP TO GET INDUSTRIAL SECRETS HOWEVER CHINA AND THE OLD COLD WAR WAYS HAVE CHANGED ENOUGH SO THAT YOU PROBABLY DON'T NEED TO WORRY ABOUT SPIES AND COUNTERSPIES HOW'S THE FOOD THE JOINTVENTURE HOTELS HAVE SOME FABULOUS AND FABULOUSLY EXPENSIVE CHINESE RESTAURANTS MOST OF THE STATE RESTAURANTS STILL PROVIDE BAD FOOD AND SERVICE WITH A SNARL MANY SMALL PRIVATE RESTAURANTS ARE POPPING UP AND SOME HAVE VERY GOOD FOOD BUT MANY ALSO UNWITTINGLY PROVIDE HEPATITIS AS AN APPETIZER SO PAY GREAT ATTENTION TO CLEANLINESS IS THERE ANY GOOD TAKEOUT MR BUSSEY A SENIOR EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU SERVED AS CONTRIBUTING EDITOR OF THIS REPORT MR MCGREGOR FORMERLY A STAFF REPORTER IN THE JOURNAL'S BEIJING BUREAU IS DOW JONES & CO'S CORPORATE REPRESENTATIVE IN CHINA 9312100041 931210 WHO'S NEWS GITANO SAYS MEMBERS OF THE DABAH FAMILY RESIGN HIGH POSTS NEW YORK MEMBERS OF THE DABAH FAMILY WHICH FOUNDED JEANSMAKER GITANO GROUP INC RESIGNED FROM THE MANAGEMENT AND BOARD OF THE TROUBLED COMPANY LATE YESTERDAY GITANO SAID THAT HAIM DABAH 42 YEARS OLD PRESIDENT AND DIRECTOR HAD RESIGNED BOTH POSITIONS ALSO RESIGNING AS DIRECTORS WERE HIS BROTHER ISAAC AND THEIR FATHER MORRIS DABAH WHO FOUNDED GITANO IN 1976 AFTER HE EMIGRATED FROM ISRAEL ANOTHER BROTHER EZRA FORMERLY A GITANO VICE CHAIRMAN AND A DIRECTOR RESIGNED IN MAY THE DABAHS' RESIGNATIONS COME A YEAR AFTER FAMILY MEMBERS FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE A SPOKESMAN FOR THE DABAHS SAID THE FAMILY EMERGED FROM PERSONAL BANKRUPTCYLAW PROCEEDINGS IN OCTOBER THE COMPANY WHICH PROSPERED THROUGH ITS RELATIONSHIP WITH MASS MERCHANTS SUCH AS WALMART STORES INC AND KMART CORP MORE RECENTLY HAS SUFFERED FROM OVEREXPANSION AND MANUFACTURING PROBLEMS GITANO HAS CLOSED SEVERAL DIVISIONS AND ALL OF ITS RETAIL STORES AND RECENTLY ANNOUNCED IT WILL QUIT MANUFACTURING APPAREL INSTEAD IT WILL SELL ITS GITANO LABEL TO RETAILERS THAT WILL TAKE OVER MANUFACTURING THE PRODUCTS AND THE COMPANY STILL NEEDS TO RESTRUCTURE ABOUT 150 MILLION OF DEBT IN A STATEMENT HAIM DABAH CALLED THE LATEST MOVE A VERY EMOTIONAL DECISION FOR THE FAMILY BUT ADDED WE FEEL THAT IT IS IN OUR BEST INTERESTS AND THOSE OF GITANO HE SAID THAT THE DABAH FAMILY'S HOLDINGS NEARLY 80 WHEN THE COMPANY WENT PUBLIC IN 1988 ARE NOW UNDER 5 MR DABAH ALSO SAID THAT GITANO'S NEW MANAGEMENT LED BY ROBERT GREGORY A FORMER EXECUTIVE AT VF CORP WHO JOINED THE COMPANY LAST SPRING AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IS FIRMLY IN PLACE NOW AND A NEW GITANO IS TAKING SHAPE GITANO SHARES TUMBLED 25 CENTS OR 111 TO CLOSE AT 2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9312100040 931210 ALCHEMISTS' DREAMS HOVER OVER PARLEY ON COLD FUSION' IN MAUI A FEW RESEARCHERS REPORT TRANSMUTATION' OF ELEMENTS MAY OCCUR BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL MAUI HAWAII COLD FUSION RESEARCH CONTROVERSIAL FROM ITS BEGINNING IS GETTING CURIOUSER AND CURIOUSER AS ALICE MIGHT SAY A FEW COLDFUSION RESEARCHERS SAY THEY ARE GETTING HINTS THAT THE OLD ALCHEMIST'S DREAM OF TRANSMUTING ONE ELEMENT TO ANOTHER MAY BE OCCURRING IN SOME OF THEIR EXPERIMENTS AND ONE PROMINENT SCIENTIST HAS BEEN EMBARRASSED BY TRANSMUTATION CLAIMS THAT HAVE LINKED HIS LABORATORY WITH A MAN JAILED ON FRAUD CHARGES THE HINTS OF TRANSMUTATION OF THE ELEMENTS WERE BROUGHT UP IN TWO REPORTS PRESENTED AT THE FOURTH ANNUAL INTERNATIONAL CONFERENCE ON COLD FUSION THAT ENDED HERE YESTERDAY THE REPORTS FROM THE US AND JAPAN DESCRIBED EXPERIMENTS IN WHICH THE RESEARCHERS ATTEMPTED TO PRODUCE EXCESS ENERGY BY THE ELECTROLYSIS OF ORDINARY LIGHT WATER INSTEAD OF THE HEAVY WATER USED IN MOST COLDFUSION EXPERIMENTS THE LIGHTWATER AND HEAVYWATER EXPERIMENTS ARE SIMILAR IN THAT AN ELECTRIC CURRENT APPLIED TO METAL ELECTRODES IMMERSED IN WATER BREAKS APART THE WATER MOLECULES INTO OXYGEN AND HYDROGEN ATOMS IN THE LIGHTWATER EXPERIMENTS ONE ELECTRODE IS NICKEL INSTEAD OF THE PALLADIUM USED WITH HEAVY WATER THE RESEARCHERS HOPE THE RELEASED HYDROGEN ATOMS WILL BE ABSORBED BY THE NICKEL ELECTRODE AND CAUSE A REACTION THAT RELEASES MORE ENERGY AS HEAT THAN IS APPLIED TO THE APPARATUS AS ELECTRICITY THIS HOPE SAY MANY PHYSICISTS IS FORLORN SINCE IT WOULD VIOLATE THE KNOWN LAWS OF PHYSICS RESEARCHERS FROM THE US JAPAN AND INDIA REPEATED EARLIER CONTROVERSIAL CLAIMS OF EXCESS HEAT FROM LIGHTWATER EXPERIMENTS BUT THE AMERICAN AND JAPANESE SCIENTISTS ALSO SAID THEY ARE DETECTING ELEMENTS SUCH AS CALCIUM STRONTIUM AND IRON IN THE WATER THAT WEREN'T THERE WHEN THE EXPERIMENTS BEGAN THEY SPECULATED THAT SALTS OF DIFFERENT METALS ADDED TO THE WATER TO ENHANCE ITS ELECTRICAL CONDUCTIVITY ARE BEING TRANSMUTED TO THE NEXT HEAVIER ELEMENT FOR INSTANCE ROBERT BUSH AND ROBERT EAGLETON OF CALIFORNIA STATE POLYTECHNIC UNIVERSITY SAID THAT WHEN THEY SPIKE THE WATER WITH A SALT OF RUBIDIUM THEY SUBSEQUENTLY FIND STRONTIUM WHICH IS ONE PROTON HEAVIER THAN RUBIDIUM SALTING THE WATER WITH POTASSIUM LEADS TO THE PRESENCE OF CALCIUM WHICH IS ONE PROTON HEAVIER THAN POTASSIUM TWO JAPANESE RESEARCHERS FROM THE CATALYSIS RESEARCH CENTER AT HOKKAIDO UNIVERSITY REPORTED THEY ALSO HAVE SEEN THE SAME PHENOMENON ONE SCIENTIST PROMINENT IN COLDFUSION RESEARCH WHO IS INTRIGUED WITH THESE EXPERIMENTS IS CHEMIST JOHN BOCKRIS OF TEXAS A&M UNIVERSITY DR BOCKRIS PREFERS TO CALL THE PHENOMENON LOWENERGY NUCLEAR CHANGE INSTEAD OF TRANSMUTATION HE SAYS IT WOULD BE ASTOUNDING IF SUCH TRANSMUTATIONS COULD TAKE PLACE UNDER ORDINARY CONDITIONS INSTEAD OF THE HIGH ENERGIES PREDICTED BY THE LAWS OF PHYSICS BUT DR BOCKRIS ALSO ACKNOWLEDGES THAT HIS INTEREST IN LOWENERGY NUCLEAR CHANGE HAS GOTTEN HIM IN HOT WATER AT TEXAS A&M HE CONFIRMED SPECIFIC DETAILS OF A REPORT LAST MONTH IN THE DALLAS MORNING NEWS ABOUT SOME CONTROVERSIAL CLAIMS OF TRANSMUTATION EMANATING FROM HIS LABORATORY THE DALLAS NEWSPAPER REPORTED THAT LAST YEAR DR BOCKRIS ALLOWED A RESEARCHER FROM TENNESSEE TO WORK AS AN UNPAID GUEST IN HIS LABORATORY TO DEMONSTRATE A METHOD OF TRIGGERING COLD FUSION WITH RADIO WAVES SHORTLY AFTERWARDS DR BOCKRIS ACCEPTED ON BEHALF OF TEXAS A&M A 200000 GIFT FROM A CALIFORNIA FINANCIER TO SUPPORT THE RESEARCH THE GUEST RESEARCHER THEN BEGAN CLAIMING HE ALSO HAD A METHOD FOR TRANSMUTING BASER ELEMENTS INTO SILVER GOLD AND PLATINUM DR BOCKRIS ALLOWED HIM TO EXPERIMENT WITH THE METHOD SUBSEQUENTLY THERE WAS A DISPUTE OVER THE VALIDITY OF THE RESEARCHER'S CREDENTIALS THE RESEARCHER IS NOW IN JAIL IN ARIZONA ON UNRELATED CRIMINAL FRAUD CHARGES ACCORDING TO THE NEWSPAPER DR BOCKRIS SAYS THAT DESPITE THE EMBARRASSING EPISODE AND CALLS BY SOME OF HIS COLLEAGUES FOR HIM TO RESIGN HE IS STILL INTRIGUED WITH THE POSSIBILITY OF LOWENERGY NUCLEAR CHANGES SUCH AS THOSE SUGGESTED BY THE LIGHTWATER EXPERIMENTS 9312100039 931210 WITH USASEAN ALLIANCE NOW IN PLACE LEADERS DEBATE HOW TO MAKE IT WORK BY RAPHAEL PURA AND LAURENCE ZUCKERMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN TOP US OFFICIALS ANNOUNCED A MAJOR NEW ECONOMIC PARTNERSHIP WITH SOUTHEAST ASIA AT LAST MONTH'S ASIAPACIFIC ECONOMIC COOPERATION MEETING IN SEATTLE IT SOUNDED LIKE WELCOME NEWS FOR THE REGION AFTER ALL MOST OF THE COUNTRIES SPEND MILLIONS OF DOLLARS EACH YEAR TRYING TO WOO US INVESTORS BUT THREE WEEKS AFTER THE PARTNERSHIP KNOWN AS THE USASEAN ALLIANCE FOR MUTUAL GROWTH OR AMG WAS UNVEILED OFFICIALS OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS ARE STILL UNCLEAR ABOUT WHAT EXACTLY IT WILL DO THEY ALSO WORRY THAT IT MAY BE TILTED TOO FAR IN WASHINGTON'S DIRECTION ASEAN TRADE OFFICIALS ARE MEETING THIS WEEK IN BALI TO DISCUSS THE US INITIATIVE IN PREPARATION FOR A MEETING WITH THEIR US COUNTERPARTS DUE TO BE HELD EARLY NEXT YEAR WHETHER THE ADMINISTRATION OF PRESIDENT CLINTON CAN ALLAY ASEAN'S CONCERNS AND MAKE THE AMG WORK WILL HELP DETERMINE WHETHER THE US CAN MEET HIS GOAL OF INCREASING AMERICAN EXPORTS TO ASIA AND FORGING A NEW PACIFIC COMMUNITY THE CONCEPT ITSELF IS A GOOD ONE IF IT ASSISTS BOTH SIDES MALAYSIAN MINISTER OF TRADE AND INDUSTRY DATUK RAFIDAH AZIZ SAID OF THE NEW PROGRAM IN AN INTERVIEW EARLIER THIS WEEK SHE SAID THAT SHE TOLD US TRADE REPRESENTATIVE MICKEY KANTOR IN SEATTLE THAT THE US OUTLINE FOR THE AMG PRESENTED THERE SEEMED TO BE ONESIDED STRESSING US TRADE INTERESTS IN ORDER TO MAKE IT A MORE VIABLE PROPOSITION SHE ADDED THERE MUST BE A CROSSFLOW ASEAN BUSINESSES SHOULD HAVE ACCESS TO THE US AS WELL THAT IS EXACTLY WHAT THE AMG WILL HELP ACCOMPLISH COUNTER US OFFICIALS THE MORAL OF THE STORY IS THAT FOR US TO HAVE BETTER OPPORTUNITIES IN ASEAN ASEAN HAS TO GROW SAID DAVID ROTHKOPF US DEPUTY UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE POLICY DEVELOPMENT IN WASHINGTON FOR ASEAN TO HAVE BETTER OPPORTUNITIES IN THE UNITED STATES THE US HAS TO GROW AND WE ARE MORE LIKELY TO GROW IN A MORE HARMONIOUS WAY IF WE ARE WORKING TOGETHER BUT MR ROTHKOPF WHO TOOK UP HIS POSITION ONLY FIVE WEEKS AGO WAS UNABLE TO SUPPLY MUCH DETAIL ABOUT HOW THE AMBITIOUS PROGRAM WOULD REACH ITS GOALS THE MISGIVINGS OF THE ASEAN MEMBERS BRUNEI INDONESIA MALAYSIA THE PHILIPPINES SINGAPORE AND THAILAND MAY REFLECT MR CLINTON'S RHETORIC IN SEATTLE WHILE OFFERING A NEW MUTUALLY BENEFICIAL PARTNERSHIP TO THE REGION MR CLINTON ALSO REPEATEDLY TOLD THE AMERICAN PEOPLE THAT HIS ONLY CONCERN WAS THAT US ECONOMIC EXPANSION IN ASIA SERVE THE COUNTRY'S INTERESTS MAKE NO MISTAKE ABOUT IT HE SAID BLUNTLY ON HIS ARRIVAL IN SEATTLE ULTIMATELY THIS MEETING IS ABOUT THE JOBS THE INCOMES AND THE FUTURES OF THE AMERICAN PEOPLE ASEAN IS THE US'S FOURTHLARGEST TRADING PARTNER WITH TWOWAY MERCHANDISE TRADE OF ABOUT 60 BILLION IN 1992 BUT THE US LAST YEAR RAN A TRADE DEFICIT OF ABOUT 12 BILLION WITH THE ASEAN ECONOMIES THE NEW PROGRAM IS HARDLY THE FIRST US EFFORT TO EXPAND TRADE WITH ASEAN INDEED ONE OF WASHINGTON'S AIMS FOR THE AMG IS TO IMPROVE COORDINATION OF PROGRAMS DESIGNED TO HELP US BUSINESS IN THE REGION IN A MEMO SENT TO US EMBASSIES IN ASEAN COUNTRIES LAST WEEK THE US COMMERCE DEPARTMENT WHICH LAUNCHED THE INITIATIVE ALONG WITH THE US TRADE REPRESENTATIVE'S OFFICE DESCRIBED THE AMG AS AN ATTEMPT TO COMBINE IN A COMPREHENSIVE FASHION THE KEY US GOVERNMENT AGENCIES RESPONSIBLE FOR PROMOTING AND FINANCING US BUSINESS OVERSEAS AND LINK THESE TO PRIVATESECTOR RESOURCES THE MEMO SAID THE PROGRAM WILL AMONG OTHER THINGS FOCUS ON WINNING BUSINESS FOR US COMPANIES IN ASEAN INFRASTRUCTURE PROJECTS ALERTING US COMPANIES TO TRADE AND INVESTMENT OPPORTUNITIES IN ASEAN AND PROVIDING A ONESTOPSHOPPING OUTLET FOR US GOVERNMENT TRADE AND INVESTMENT FINANCING THE AMG ALSO WOULD OFFER A FORUM FOR US BUSINESS TO ENGAGE ASEAN OFFICIALS IN A REGULAR POLICY DIALOGUE IN EFFECT PROVIDING THE AMERICANS A CHANCE TO LOBBY FOR THEIR INTERESTS IN THE REGION THE MEMO SUGGESTED FOR EXAMPLE THAT THE AMG COULD HELP US BUSINESSES EXPRESS CONCERNS OVER PROTECTION OF INTELLECTUAL PROPERTY RIGHTS IN ASEAN COUNTRIES ESPECIALLY TRADE SECRETS PATENTS TRADEMARKS AND COPYRIGHTS WHILE PROVIDING SOME DETAIL ON WHAT WASHINGTON HOPES TO ACCOMPLISH WITH THE AMG THE MEMO DOESN'T SAY WHAT IF ANYTHING ASEAN COUNTRIES ARE BRINGING TO THE PROGRAM CESAR BAUTISTA UNDERSECRETARY OF THE PHILIPPINES' DEPARTMENT OF TRADE AND INDUSTRY SAID THE MOST IMPORTANT NEW ELEMENTS OFFERED BY THE AMG ARE THE GOALS OF COORDINATING US AGENCIES AND BRINGING TOGETHER US AND ASEAN BUSINESSES BUT HE TOO STRESSED THAT A KEY ASEAN GOAL FOR THE AMG WOULD BE TO ENSURE THAT BENEFITS ARE NOT GOING TO FLOW ONLY ONE WAY ASEAN MEMBERS OF COURSE HOPE TO USE THE PROGRAM TO PROMOTE THEIR EXPORTS TO THE US ASEAN ALSO WOULD LIKE TO PUBLICIZE THE NEW ASEAN FREE TRADE AREA OR AFTA AS AN INVESTMENT INCENTIVE TO US COMPANIES A SENIOR THAI TRADE OFFICIAL SAID ASEAN WANTS TO MAKE THE AMG MORE BALANCED HE SAID SUCH PROPOSALS WERE TO BE DISCUSSED AT A MEETING OF ASEAN SENIOR ECONOMIC OFFICIALS THIS WEEK IN BALI ASEAN WILL BE INPUTTING WHAT WE THINK WE SHOULD HAVE IN THE AMG MALAYSIA'S DATUK RAFIDAH TOLD REPORTERS IN KUALA LUMPUR MR ROTHKOPF OF THE US COMMERCE DEPARTMENT SAID ASEAN HAS MUCH TO GAIN FROM THE PROGRAM WHICH WILL CREATE WORKING GROUPS TO ADDRESS SPECIFIC TRADE ISSUES AND LAUNCH MISSIONS THAT WILL SEND BUSINESS EXECUTIVES FROM SPECIFIC SECTORS BACK AND FORTH BETWEEN ASIA AND THE US THEY WILL HAVE A BETTER SENSE OF THE OPPORTUNITIES AVAILABLE TO THEM IN THE US HE SAID IT'S AN OPPORTUNITY TO ADDRESS THEIR CONCERNS ON AN ONGOING BASIS THE WASHINGTONBASED USASEAN COUNCIL A PRIVATESECTOR GROUP ALSO ENDORSES THE NEW PROGRAM WE WERE CONCERNED THAT THE USASEAN RELATIONSHIP NOT GET LOST IN THE APEC EXERCISE SAID TONY ALBRECHT A SENIOR ADVISER TO THE GROUP THIS ENSURES THAT WE GET MAJOR ATTENTION 9312100038 931210 CHINA A SPECIAL REPORT BUSINESS PLAN WHEN IN HUANGPU CULTURAL SAVVY IS ESSENTIAL FOR COURTING CUSTOMERS AND SKIRTING BUREAUCRATS WILLIAM O'BRIEN IS LIVING PROOF BY MARCUS W BRAUCHLI HUANGPU CHINA IT'S 930 AM AND WILLIAM E O'BRIEN'S GRAY TOYOTA HAS CRAWLED A DOZEN MILES THROUGH SOUTHERN CHINA'S PERPETUAL TRAFFIC JAM SINCE HE LEFT HOME TWO HOURS AGO BUT THE TRUCKCLOGGED ROADS ARE THE LEAST OF HIS PROBLEMS LAST WEEK SOMEBODY BEAT UP HIS DRIVER SOMEONE ELSE STOLE HIS SECRETARY'S PURSE AND WITH IT AN AIRLINE TICKET FOR HIM A SHIPPING COMPANY WON'T TAKE HIS GOODS DOWN THE PEARL RIVER TO HONG KONG HIS NEW FACTORY'S WALLS ARE ALREADY CRUMBLING MR O'BRIEN TAPPING OUT A MEMO ON HIS LAPTOP COMPUTER IN THE BACKSEAT ISN'T FAZED YOU LIVE IN CHINA YOU EXPECT COMPLICATIONS HE SAYS HE HAPPENS TO SPECIALIZE IN MASTERING THEM THE BURLY 42YEAROLD NEW JERSEY NATIVE IS RENOWNED EVEN AMONG OTHER FOREIGNERS AS ONE OF THE MOST SKILLFUL NAVIGATORS OF THE WORLD'S BIGGEST AND MESSIEST EMERGING MARKET I THINK WE'VE FOUND WAYS TO BEAT THE SYSTEM MR O'BRIEN SAYS THEN HE ADDS BUT THERE IS NO SYSTEM IT'S A LACK OF SYSTEM THAT MAKES IT ALL THE TRICKIER FOR ANY COMPANY HOPING TO DO BUSINESS IN CHINA AND MAKES HAVING SOMEONE LIKE MR O'BRIEN ALL THE MORE ESSENTIAL HIS EXPERIENCES WHILE RUNNING A JOINTVENTURE FACTORY THE MOST COMMON TYPE OF FOREIGN INVESTMENT IN CHINA OFFER INSIGHT INTO HOW COMPANIES CAN SURVIVE AND THRIVE HERE MR O'BRIEN WORKS FOR HB FULLER CO A MINNEAPOLIS COMPANY THAT IN CHINA MAKES ADHESIVES FOR EVERYTHING FROM PACKAGING TO CIGARETTES THOUGH HE'S CONSPICUOUSLY FOREIGN TALL MUSTACHIOED AND PAUNCHY HE'S AS FLUENT IN COLLOQUIAL CHINESE AS IN ENGLISH HE KNOWS WHEN TO DOLE OUT CASHFILLED RED ENVELOPES AS GIFTS FOR THE STAFF AND HOW TO AVOID EVER PAYING A BRIBE THE GREATEST TESTAMENT TO HIS BICULTURAL TALENT IS THE FACT THAT IN A NATION PLAGUED BY A BLEND OF CRIME AND COMMUNISM POOR LAWS AND POOR INFRASTRUCTURE THE FULLER FACTORY STARTED MAKING MONEY THREE YEARS AHEAD OF ITS 1995 TARGET FULLER HAS BEEN TRYING TO FIGURE OUT THE CHINESE MARKET SINCE 1986 ONE OF FIVE HUMAN BEINGS IS AWAKENING TO THE POSSIBILITIES OF A CAPITALISTIC WORLD SAYS ANTONIO FS LOBO FULLER'S VICE PRESIDENT FOR ASIA A REGION THAT NOW ACCOUNTS FOR 6 OF THE COMPANY'S 9337 MILLION IN ANNUAL SALES BY PLANTING A SEED AND IT'S SMALL WE ARE ANTICIPATING THE GROWTH OF THE MARKET GETTING THAT SEED INTO THE GROUND WAS TOUGH LENGTHY NEGOTIATIONS WITH ONE PROSPECTIVE JOINTVENTURE PARTNER FELL THROUGH THEN FULLER LATCHED ONTO GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP THE MERCHANTBANKING ARM OF GUANGDONG PROVINCE FULLER AGREED TO BRING IN MORE THAN 1 MILLION IN EQUIPMENT GITIC AGREED TO BUILD A FACTORY IN A LOWTAX ZONE ALTHOUGH FULLER WAS THE FIRST JOINT VENTURE IN THE ZONE WM WRIGLEY JR CO WHICH USES FULLER ADHESIVES AND PROCTER & GAMBLE CO ARE NOW AMONG ITS DOZENS OF FOREIGN NEIGHBORS WHEN THE FACILITY STARTED OPERATING IN 1990 THE COMPANY'S REAL EDUCATION BEGAN GIVEN FULLER'S LACK OF CHINA EXPERTISE EVERYTHING WE HAD DONE WE HAD DONE WRONG SAYS VADIM BYTENSKY THE COMPANY'S VICE PRESIDENT FOR OPERATIONS THE PLANT WAS SET UP TO PRODUCE A VARIETY OF ADHESIVES MORE THAN THE CHINESE MARKET COULD SUPPORT AND THE EQUIPMENT FULLER INSTALLED WAS TOO MODERN AND EXPENSIVEAS WELL AS TOO DEPENDENT ON HIGHPRICED ENERGY TO BE COMPETITIVE IN PRODUCING MANY PRODUCTS LIKE MANY OTHER CULTURALLY ASTUTE BUSINESSPEOPLE IN CHINA MR O'BRIEN FIRST CAME TO THE COUNTRY AS AN ACADEMIC IN 1981 WHILE STUDYING IN BEIJING HE MET AND MARRIED A CHINESE WOMAN WHOSE FATHER HAD BEEN A TOP OFFICIAL IN THE PEOPLE'S LIBERATION ARMY MR O'BRIEN TOOK A JOB IN GUANGDONG WORKING FOR A FOREIGN OILDRILLING JOINT VENTURE FIVE YEARS LATER HE MOVED BACK TO THE US WHEN HB FULLER FOUND HIM MR O'BRIEN WAS LIVING WITH HIS WIFE AND YOUNG DAUGHTER IN MINNESOTA ADVISING COMPANIES ON CHINA AND SERVING BY CHANCE ON A SISTERCITY PROJECT WITH FULLER'S CHAIRMAN IN NOVEMBER 1991 HE MOVED TO GUANGDONG AS THE COMPANY'S GENERAL MANAGER FOR CHINA HIRING MR O'BRIEN WAS CRUCIAL FOR FULLER HAVING WORKED IN A BEIJING ACADEMIC CENTER MARRIED A CADRE'S DAUGHTER AND GONE TO SCHOOL WITH A NUMBER OF OTHER CHINA SPECIALISTS DOING BUSINESS FOR FOREIGN COMPANIES MR O'BRIEN ALREADY KNEW MUCH ABOUT FINDING HIS WAY THROUGH CHINA'S STRANGE WATERS ONCE FOR EXAMPLE WHILE HE WAS WORKING FOR THE OILDRILLING VENTURE HE RECEIVED A STEEP BILL FOR SERVICES FROM A LOCAL COMPANY THE CHARGES LOOKED REASONABLE BUT AT THE BOTTOM WHERE THEY WERE TALLIED SOMEONE HAD WRITTEN TIMES TWO AND ARBITRARILY DOUBLED THE TOTAL MR O'BRIEN CHALLENGED THE BILL HE REMEMBERS BEING TOLD IT'S LOGICAL SINCE YOU'VE GOT A LOT MORE MONEY YOU MUST PAY TWICE AS MUCH AS NORMAL MR O'BRIEN CALLED SOME ACQUAINTANCES IN BEIJING AT 530 AM A FEW DAYS LATER HIS DOORBELL RANG IT WAS THE MANAGER OF THE CHINESE SERVICES COMPANY SAYING IT WAS ALL A MISUNDERSTANDING BUT KNOWING HOW TO DEAL WITH CHINA'S BUREAUCRACY IS ONLY HALF THE BATTLE AT FULLER MR O'BRIEN'S FIRST TASK WAS TO MOTIVATE THE STAFF BEFORE HE ARRIVED THE PLANT'S CHINESE WORKERS EXPECTED GUIDANCE AT EVERY STEP A HABIT PICKED UP IN A COMMUNIST SOCIETY WHERE MANAGERS INSIST ON A SAY IN EVERYTHING I'D GET CALLED OUT OF MEETINGS TO TAKE AN URGENT TELEPHONE CALL AND IT WOULD BE SOME GUY SAYING A PIECE FELL OFF ONE OF OUR MACHINES AND ASKING WHAT HE SHOULD DO MR O'BRIEN RECALLS HE COULDN'T TAKE TRIPS OF MORE THAN A DAY OR TWO A BIG DRAWBACK IN A COUNTRY LARGER THAN THE US WITHOUT WORRYING THAT THE PLANT WOULD SHUT DOWN FOR LACK OF DIRECTION HE QUICKLY SET ABOUT ASSURING HIS 32 WORKERS THAT THEY HAD THE AUTHORITY TO MAKE DECISIONS THIS ENVIRONMENT ENCOURAGES US TO WORK HARDER SAYS LUCY LIU A 27YEAROLD IN PURCHASING SHE ADDS THAT WHEN SHE WORKED FOR A STATE TRADING COMPANY IT MADE NO DIFFERENCE IF WE DID SOMETHING WELL OR NOT MR O'BRIEN MAKES US FEEL RESPONSIBLE HE ALSO FOLLOWS LOCAL CUSTOMS SUCH AS HANDING OUT RED ENVELOPES WITH TOKEN AMOUNTS OF CASH AT THE LUNAR NEW YEAR FULLER NEEDED STRATEGIC GUIDANCE AS WELL MR O'BRIEN NARROWED THE NUMBER OF PRODUCTS THAT THE PLANT MANUFACTURED DOWN TO THOSE IT COULD MAKE AND SELL COMPETITIVELY AND HE DIRECTED THE SALES FORCE TO FORGO SMALL SPECIALTY ORDERS AND FOCUS ON BIG STEADY CUSTOMERS THAT WOULD ENABLE THE FACTORY TO RUN AT OR NEAR CAPACITY SEEKING YOUNG EMPLOYEES FREE OF COMMUNIST LETHARGY HE PLACED JOB ADS IN NEWSPAPERS HE ALSO PROMOTED FROM WITHIN FULLER'S FORMER DRIVER WHO KNEW ALL THE FACTORY'S CUSTOMERS IS NOW A TOP SALESMAN IN A WAY FOREIGN TO CHINESE ENTERPRISES MR O'BRIEN IS WILLING TO SPEND MONEY TO CREATE BUSINESS IF WE SEND SOMEBODY TO A CUSTOMER'S FACTORY FOR TWO OR THREE WEEKS TO MAKE SURE OUR GLUE WORKS FOR THEM HE SAYS THEY BECOME INTERESTED AND WE GET THE BUSINESS DESPITE MR O'BRIEN'S SAVVY SOME PROBLEMS PERSIST RAW MATERIALS OFTEN AREN'T UP TO STANDARD THUS MR O'BRIEN MAY FIND HIMSELF FERRYING SMALL QUANTITIES OF CRUCIAL CHEMICALS BACK TO GUANGZHOU ALSO KNOWN IN THE WEST AS CANTON ON THE 3 1/2HOUR TRAIN RIDE FROM HONG KONG THEN THERE'S CHINA'S GROANING INFRASTRUCTURE IT USED TO TAKE TWO DAYS TO GET A TRUCKLOAD OF MATERIAL FROM HONG KONG TO THE FACTORY NOW BECAUSE OF JAMMED ROADS IT CAN TAKE MORE THAN A WEEK AND SOMETIMES MR O'BRIEN HAS TO PUT TWO DRIVERS IN A TRUCK TO GUARD AGAINST ARMED ROBBERIES TRANSPORTING FULLER'S GOODS IS ALSO A CHALLENGE FOR FACTORIES IN THE REGION ARE CHURNING OUT SO MUCH PRODUCT THAT OVERWHELMED SHIPPERS CAN BE PICKY ABOUT WHAT THEY'LL TAKE MS LIU MUST NEGOTIATE FOR HOURS JUST TO GET A SHIPMENT TO HONG KONG A SCARIER PROBLEM IS CRIME INCLUDING CORRUPTION WHEN MR O'BRIEN'S DRIVER RECENTLY CUT OFF A LUXURY CAR BEARING THE PLATES OF THE PEOPLE'S LIBERATION ARMY THE OCCUPANTS OF THE OTHER CAR JUMPED OUT AND BEAT THE FULLER DRIVER SO SERIOUSLY HE HAD TO BE HOSPITALIZED BRIBERY AND OTHER ECONOMIC CRIMES ARE RAMPANT MR O'BRIEN SAYS HIS SALESPEOPLE CONSTANTLY COMPLAIN THAT TO WIN CONTRACTS OTHER COMPANIES BOTH FOREIGN AND CHINESE ARE WILLING TO OFFER A WIDE VARIETY OF INCENTIVES MONEY VIDEOCASSETTE RECORDERS EVEN FINANCING OF US SCHOOLING FOR THE CHILDREN OF SOME CHINESE OFFICIALS US LAW BARS COMPANIES FROM PAYING BRIBES FULLER SAYS IT STRICTLY FOLLOWS THAT LAW AND MR O'BRIEN INSISTS THAT DOING SO MAKES BUSINESS SENSE THE COMPANY HE RECALLS ONCE OFFERED TO SELL ADHESIVES TO A PROSPECTIVE CUSTOMER FOR 32000 YUAN ROUGHLY 5500 AT TODAY'S OFFICIAL EXCHANGE RATE A TON THE CUSTOMER PROPOSED CALLING THE PRICE 42000 YUAN A TON ITS MANAGEMENT WANTED A KICKBACK OF THE DIFFERENCE MR O'BRIEN REFUSED THINK OF WHAT THAT DOES TO YOUR CUSTOMERS HE SAYS YOU DON'T WANT INEFFICIENCY TO DESTROY YOUR CUSTOMERS INDEED ESTABLISHING LASTING RELATIONSHIPS IS MR O'BRIEN'S CHIEF GOAL THUS ONE RECENT DAY HE FINDS HIMSELF DRINKING BEER AT 11 AM WITH CAO XIANGDONG TSINGTAO BREWERY CO'S COMMUNIST PARTY SECRETARY AT THE COMPANY'S BREWERY NO 2 IN QINGDAO WHILE OTHER OFFICIALS MAY HAVE NOMINAL PURCHASING AUTHORITY THE PARTY'S REPRESENTATIVE ALMOST CERTAINLY WILL BE CONSULTED FULLER ALREADY SELLS THE NO 2 BREWERY NEARLY 70 TONS OF GLUE A YEAR THE ADHESIVE IS USED TO SEAL CARDBOARD CARTONS IN WHICH BOTTLES ARE PLACED BUT TSINGTAO'S THREE OTHER PLANTS IN THE CITY STILL USE COMPETITORS' GLUES MR O'BRIEN WALKS THROUGH THE BREWERY EXAMINING PACKING EQUIPMENT SMELLING HANDFULS OF GLUE FOR RESIN QUALITY AND VOLUNTEERING TO PUT FULLER RESEARCHERS TO WORK ON SOLVING A PARTICULAR PROBLEM THE BREWERY OFFICIALS AGREE TO LET HIM COME UP WITH NEW FORMULAS FOR THEIR PLANT AT A LUNCHEON BANQUET MR O'BRIEN IMPRESSES HIS HOSTS WITH HIS COLLOQUIAL CHINESE AND HIS ABILITY TO KNOCK BACK ROUNDS OF BEER HIS HOSTS THEN TOAST WITH POWERFUL GRAIN ALCOHOL THOUGH HE DISCREETLY SWITCHES TO WINE HE HAPPILY PUTS AWAY THE SAVORY SEA SLUGS SPONGY MEMBERS OF THE MOLLUSK CLAN THAT TASTE MUCH LIKE THEY SOUND BUT ARE CONSIDERED A DELICACY IN CHINA WHEN MR CAO LEARNS FROM AN UNDERLING THAT MR O'BRIEN IS MARRIED TO THE DAUGHTER OF A CHINESE MILITARY OFFICIAL HE DECLARES THE FOREIGNER HALF CHINESE THE NEXT DAY THE BREWERY AGREES TO BUY MORE FULLER GLUE CHINA IS A MINEFIELD MR O'BRIEN LATER REFLECTS EVERYONE WANTS TO COLLECT A FEE EVERYONE WANTS A CUT THINGS DON'T WORK BUT IF YOU HOLD TO YOUR PRINCIPLES AND KNOW ENOUGH TO GET THINGS DONE IT'S THE BEST PLACE TO BE MR BRAUCHLI IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HONG KONG BUREAU THE TOP 20 JOINT VENTURES IN CHINA RANKED BY 1992 SALES VOLUME IN MILLIONS OF YUAN FOREIGN PARTNERS ARE LISTED IN PARENTHESES 9312100037 931210 CITIBANK TO ABOLISH FEES ON 7 MILLION OF ITS CREDIT CARDS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A BID TO SHORE UP ITS DECLINING MARKET SHARE IN CREDIT CARDS CITIBANK IS ELIMINATING ANNUAL FEES ON ONETHIRD OF ITS 20 MILLION CREDITCARD ACCOUNTS IN THE US THE NATION'S LARGEST ISSUER OF CREDIT CARDS SAYS THE MOVE SHOULDN'T HAVE MUCH OF AN IMPACT ON ITS BOTTOM LINE AND EXPECTS TO EARN THE SAME PROFITS FROM US CARDS THAT IT EARNED LAST YEAR THE MOVE TO ELIMINATE FEES ON SEVEN MILLION ACCOUNTS IS FUELED BY A DROP IN FUNDING COSTS AND WRITEOFFS LESS FRAUD AND A 20 TO 30 JUMP IN SPENDING DURING THIS HOLIDAY SHOPPING SEASON OFFICIALS SAY THE SEVEN MILLION CARDS INCLUDE CITIBANK'S CLASSIC CARD WHICH HAS A 20 ANNUAL FEE AND ITS PREFERRED CARD WHICH HAS A 50 ANNUAL FEE THOSE ARE ITS TWO TRADITIONAL MASSMARKET CARDS YES WE'RE GOING TO GIVE UP SOME MONEY ON SEVEN MILLION CARDHOLDERS BUT WE BELIEVE THE IMPACT ON THE BOTTOM LINE WILL BE NEGLIGIBLE SAID JAMES L BAILEY EXECUTIVE VICE PRESIDENT AT CITIBANK PEOPLE ARE CONFIDENT AND ARE USING MORE CREDIT THAT MEANS INCREASED REVENUE TO US OF COURSE WHILE THE BANK SAYS IT'S BEEN WINNING BACK MARKET SHARE RECENTLY THE DECISION TO ELIMINATE FEES COMES AFTER A TOUGH 21 MONTHS IN WHICH IT LOST NEARLY 7 OF ITS CARD BASE THROUGH MIDYEAR 1993 ESTIMATES THE NILSON REPORT AN OXNARD CALIFBASED CREDITCARD NEWSLETTER THE NEWSLETTER SAYS CITIBANK HAS LOST ACCOUNTS TO LOWPRICE COMPETITORS SUCH AS THE GENERAL MOTORS CORP CREDIT CARD WHICH OFFERS NO ANNUAL FEE INCLUDING THE FOUR MILLION ACCOUNTS IN WHICH IT ALREADY ELIMINATED FEES OVER HALF OF ITS ACCOUNTS WILL EVENTUALLY PAY NO ANNUAL FEE THEY'RE ATTACKING ON EVERY FRONT THIS PROBLEM OF ATTRITION SAID DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT THE COMPANY IS ALSO LOWERING THE MINIMUM PAYMENT ON ITS CARDS WHILE RAISING THE DELINQUENCY FEES THAT SHOULD HELP OFFSET A DECLINE IN REVENUE SINCE LOWER MINIMUM PAYMENTS MEAN CONSUMERS KEEP INTERESTBEARING BALANCES OUTSTANDING FOR A LONGER PERIOD OF TIME WE THINK WITH IMPROVED CONDITIONS IT'S TIME TO GO ON OFFENSIVE TO GROW OUR MARKET SHARESAID MR BAILEY ASIDE FROM LOWERING OR WAIVING FEES CITIBANK IS OFFERING A HOST OF NEW CREDIT CARDS APPEALING TO DIFFERENT SEGMENTS OF THE MARKETPLACE IT IS TRYING TO HAMMER OUT A COBRANDED CARD WITH APPLE COMPUTER INC FOR INSTANCE MR BAILEY DECLINED COMMENT ON THE APPLE CARD BUT SAID THE BANK HAS 30 NEW PRODUCTS IN VARIOUS STAGES OF TESTING THEY'RE PULLING OUT ALL THE STOPS SAID MR ROBERTSON 9312100036 931210 CHINA A SPECIAL REPORT BUSINESS PLAN THE PRICE OF SUCCESS FOREIGN INVESTORS MAY FIND AT LEAST ONE ASPECT OF LIFE IN CHINA'S CITIES ALL TOO FAMILIAR THE COST BY JOSEPH KAHN SHANGHAI CHINA IN THE RACE TO RECLAIM ITS STATUS AS THE PARIS OF THE EAST THIS PORT CITY HAS PASSED A MILESTONE IN OFFICE RENTS FOREIGN BUSINESSES SETTING UP SHOP IN CHINA'S INDUSTRIAL AND FINANCIAL CENTER CAN EXPECT TO PAY AN AVERAGE MONTHLY RATE OF MORE THAN 6 A SQUARE FOOT WHICH IS A NOTCH ABOVE RATES IN PARIS IN FACT ONLY THREE CITIES TOKYO LONDON AND HONG KONG NOW COMMAND HIGHER RENTS WITH SOME SIX NEW FOREIGN JOINTVENTURE COMPANIES SIGNING CONTRACTS IN SHANGHAI EVERY DAY THIS LANDLORDS' MARKET SEEMS TO KNOW NO BOUNDS EVEN THE CURATORS OF THE COLONIALERA SHANGHAI MUSEUM HAVE STASHED AWAY THEIR ANTIQUE FURNITURE AND CERAMICS AND DIVIDED THE ELEGANT DISPLAY HALLS INTO OFFICE SUITES THE WAITING LIST FOR THESE SUITES IS A YEAR LONG FOREIGN COMPANIES PLANNING TO BUY INTO CHINA'S ECONOMIC BOOM SHOULD PREPARE FOR A BAD CASE OF STICKER SHOCK AND NOT JUST WHEN IT COMES TO OFFICE RENT PRICES FOR HOUSING CARS AND SCHOOL TUITION AND FOR LOTS OF OTHER GOODS AND SERVICES HAVE SOARED IN SUCH PLACES AS SHANGHAI BEIJING AND GUANGZHOU A RECENT COSTOFLIVING SURVEY BY THE ECONOMIST INTELLIGENCE UNIT A CONSULTING FIRM FOUND BEIJING'S DAILY COSTS EXCLUDING RENT ROUGHLY EQUAL TO THOSE IN NEW YORK STEEP TARIFFS ON IMPORTED PRODUCTS ARE ONE REASON COSTS ARE SO HIGH PRICES ARE ALL OVER THE MAP A DIET COKE LISTS FOR THE EQUIVALENT OF 125 IN A SHANGHAI SUPERMARKET AND 5 IN A LUXURY HOTEL A BOTTLE OF FLEX SHAMPOO RUNS 490 PHONING THE US COSTS 3 A MINUTE AND CALLING LONDON ROUGHLY 350 A MINUTE HOWEVER IT COSTS ONLY 4 CENTS TO SEND A LETTER ACROSS THE COUNTRY 10 CENTS TO HOP A BUS ACROSS TOWN AND ABOUT 250 FOR A 25MINUTE TAXI RIDE DUTIES AND TAXES PUMP UP THE COST OF A CAR BY ANYWHERE FROM 30 TO 280 IN BEIJING A LEXUS LS400 SEDAN CAN COST AS MUCH AS 152000 TRIPLE THE PRICE IN NEW YORK NEED TO FIND A SCHOOL FOR THE KIDS SIGN UP AT LEAST A YEAR IN ADVANCE AND EXPECT TO PAY ABOUT 8700 ANNUALLY FOR EACH CHILD ENROLLED FOR MANY FOREIGNERS FINDING AN AFFORDABLE PLACE TO LIVE AND WORK RANKS AS THE NO 1 HEADACHE LANDLORDS BOTH FOREIGN AND CHINESE ARE HAPPILY GOUGING THEIR TENANTS WITHOUT CONSCIENCE DECLARES NORMAN GIVANT AN AMERICAN LAWYER LIVING IN SHANGHAI THIS YEAR ALONE SHANGHAI AND BEIJING HAVE SEEN RESIDENTIAL RENTS SOAR AN AVERAGE OF 80 FAMILYSIZED APARTMENTS IN SHANGHAI CENTER A POPULAR OFFICE AND RESIDENTIAL DEVELOPMENT FOR FOREIGNERS NOW RENT FOR 8000 A MONTH STUDIOS GO FOR 2400 EVEN AT THOSE PRICES 72 COMPANIES HAVE PLACED THEIR NAMES ON A WAITING LIST MOST FIND THAT THEY HAVE NO CHOICE ALTHOUGH MORE OFFICE SPACE IS UNDER CONSTRUCTION THERE ARE FEW ALTERNATIVES AT THE MOMENT ALMOST EVERY FOREIGNER HAS A TALE OF WOE ABOUT AN APARTMENT HUNT ONE FOREIGN BUSINESSMAN IN SHANGHAI HAD HIS EYES ON A COLONIAL MANSION UNDERGOING RENOVATION IN THE CITY'S TREELINED FORMER FRENCH CONCESSION A ROUNDED STONE PORTICO AND A GENEROUS LAWN GRACED THE EXTERIOR INSIDE MOSAIC TILES DECORATED THE FLOORS AND MAHOGANY PANELING COVERED THE WALLS THE RENT FOR ONE UNIT 7000 A MONTH FOUR WEEKS LATER THE RENOVATION WAS COMPLETE PART OF THE LAWN HAD BEEN PAVED TO PROVIDE PARKING MOSAIC TILES HAD GIVEN WAY TO CONCRETE FLOORS THE MAHOGANY TO WHITEWASH THE ONE IMPROVEMENT THE BUSINESSMAN SAYS HE WANTED A KITCHENETTE FOR EACH APARTMENT WAS JUDGED TOO PROLETARIAN THE CONTRACTOR TOLD ME THAT REAL EXPATS DON'T COOK FOR THEMSELVES THEY HAVE SERVANTS FOR THAT SAYS THE BUSINESSMAN HE DIDN'T TAKE THE PLACE SUCH TALES KEEP MOST FOREIGNERS FROM STRAYING OFF THE BEATEN TRACK MR GIVANT THE AMERICAN LAWYER HAS LIVED FOR SIX YEARS IN THE USRUN SHANGHAI HILTON HOTEL IT WAS THE ONLY PLACE I COULD GET A RELIABLE YEARONYEAR LEASE HE SAYS HE HAS MOVED IN HIS OWN DESK TABLE AND CHAIRS VIDEOCASSETTE RECORDER AND WALL HANGINGS NOW HE ADDS THE PLACE IS AT LEAST HALF MINE LAI CHISUN THE PRESIDENT OF MOTOROLA CHINA SAYS THE COST AND SCARCITY OF OFFICE SPACE PUT A CONSTANT STRAIN ON THE COMPANY'S RAPIDLY EXPANDING OPERATION BASED IN TIANJIN AND BEIJING EMPLOYEES OF THE MOTOROLA INC UNIT WHICH IS DOING A BOOMING BUSINESS IN TELECOMMUNICATIONS EQUIPMENT WORK OUT OF SCATTERED HOTELS AND WESTERNSTYLE OFFICES RENTED AT TOKYO PRICES AS A RESULT MOTOROLA HAS SIGNED A LONGTERM LEASE FOR A BUILDING IN NORTHWESTERN BEIJING AND HAS RENOVATED THE INTERIOR IN PREPARATION FOR THE STAFF OF 50 EXPATRIATES AND 700 CHINESE THAT MR LAI EXPECTS TO HAVE IN PLACE BY NEXT YEAR HIS ADVICE TAKE A LONGTERM VIEW AND YOU CAN SAVE SOME MONEY MCDONNELL DOUGLAS CORP AVOIDED THE CRUNCH AT ITS SHANGHAI OPERATION BY HAVING ITS CHINESE PARTNER SUPPLY OFFICES AND HOUSING THE COMPANY PROVIDES TECHNICAL SUPPORT FOR THE LOCAL ASSEMBLY OF ITS MD80 JETLINERS WE LUCKED OUT A MCDONNELL DOUGLAS EXECUTIVE SAYS FOR THE LESS FORTUNATE THERE'S ALWAYS THE SHANGHAI MUSEUM AT 7 A SQUARE FOOT MONTHLY DECORATIONS EXTRA MR KAHN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SHANGHAI BUREAU 9312100035 931210 CHINA A SPECIAL REPORT BUSINESS PLAN STICKS AND CARROTS AS WASHINGTON TRIES TO SPUR REFORM IN CHINA BUSINESSPEOPLE OFTEN GET CAUGHT IN THE MIDDLE BY ROBERT KEATLEY WASHINGTON LISTEN TO AMERICAN EXECUTIVES IN CHINA AND YOU'LL WONDER WHETHER THE US GOVERNMENT IS FRIEND OR FOE TO INVESTORS TRYING TO MAKE HAY THERE AN UNFORTUNATE FACT OF LIFE IS THAT IF YOU'RE GOING TO DO BUSINESS IN CHINA YOU HAVE TO DO BUSINESS IN WASHINGTON TO EDUCATE THE POLITICIANS AND KEEP THEM OFF YOUR BACK ONE AMERICAN IN BEIJING SAYS ANGRILY THE US IS TRYING TO MORALIZE IT JUST GROWS THE BUSINESS FOR OUR COMPETITION AT ISSUE IN THIS COMPLEX DEBATE IS AMERICA'S SOMETIMES CONTRADICTORY ATTITUDE TOWARD CHINA ON THE ONE HAND WASHINGTON WANTS A PARTNERSHIP WITH THIS EMERGING POWER ON THE OTHER IT WANTS TO FORCE POLITICAL CHANGE IN A COUNTRY THAT RETAINS SOME DICTATORIAL PRACTICES FROM MAOIST DAYS THOUGH THE SOCIETY HAS BECOME FREER WHEN IT COMES TO PRESSING FOR REFORM POLICIES ON TRADE AND INVESTMENT ARE OFTEN THE BLUDGEONS TAKE THE ISSUE OF MOSTFAVOREDNATION TARIFF STATUS THE US NORMALLY APPLIES MFN TARIFFS TO IMPORTS FROM MORE THAN 100 COUNTRIES EXCLUDING ONLY A FEW HARD CASES SUCH AS NORTH KOREA AND CUBA HOWEVER UNDER SPECIAL LAWS DATING FROM THE COLD WAR THE US GRANTS CHINA MFN PRIVILEGES FOR ONLY ONE YEAR AT A TIME AND ONLY AFTER A SPECIAL REVIEW EACH SUMMER PROBLEMS ARISE WHEN THE WHITE HOUSE OR THE CONGRESS THREATENS TO WITHHOLD MFN STATUS UNLESS CHINA SHOWS PROGRESS ON CERTAIN ISSUES SUCH AS ARMS SALES OR THE TREATMENT OF POLITICAL DISSENTERS CHINESE FOREIGN MINISTRY OFFICIALS DENOUNCE THE US AS ARROGANT INTRUSIVE AND HYPOCRITICAL CLAIMING THEIR SOVEREIGNTY IS AT STAKE THEY RESIST AND WARN OF RETALIATION TRADE IS TRADE SAYS THE CHINESE FOREIGN MINISTRY WE ARE ALWAYS OPPOSED TO THE POLITICIZATION OF THE ECONOMIC AND TRADE ISSUE BEIJING ALSO INSISTS THAT IT DOES WELL AT PROVIDING THE MOST BASIC HUMAN RIGHT OF ALL THAT OF LIVING ABOVE THE POVERTY LINE CHINA TOO WOULD SUFFER ITS TRADE SURPLUS WITH THE US WILL BE CLOSE TO 23 BILLION THIS YEAR PRODUCING HARD CASH THAT FUELS CHINA'S ECONOMIC BOOM WITHOUT MFN STATUS IMPORT DUTIES ON CHINESE GOODS WOULD SKYROCKET PRICING MANY PRODUCTS OUT OF THE MARKET BEIJING STILL WON'T AGREE TO STRICT LIMITATIONS ON SELLING MISSILE TECHNOLOGY TO SUCH NATIONS AS PAKISTAN SO THE US REFUSES TO SELL SATELLITE TECHNOLOGY TO CHINA LIKEWISE CHINA AND THE US CAN'T AGREE ON HOW TO CURB SHIPMENTS OF MISLABELED OR TRANSSHIPPED TEXTILES TO THE US WHICH WASHINGTON NOW CLAIMS IS A 15 BILLIONAYEAR ILLEGAL BUSINESS THIS ALLEGED ACTIVITY COULD RESULT IN NEW AMERICAN SANCTIONS AS EARLY AS NEXT MONTH AND DON'T THINK THAT US BUSINESS IS MONOLITHICALLY AGAINST SUCH SANCTIONS THE US TEXTILE INDUSTRY WHICH CLAIMS THAT CHINESE CHEATING STEALS ITS MARKET WOULD LOVE TO SEE ACTION TAKEN CERTAIN LEGISLATORS SUCH AS SENATE MAJORITY LEADER GEORGE MITCHELL A MAINE DEMOCRAT STILL WANT TO USE MFN STATUS AS A WEAPON TO FORCE BEIJING TO GO EASIER ON POLITICAL DISSENTERS THE US SHOULDN'T PUT ITS VALUES ASIDE JUST TO MAKE A BUCK IN CHINA MANY OF THESE CHINA CRITICS ARGUE MEANWHILE DEMOCRATIC SEN EDWARD KENNEDY OF MASSACHUSETTS MAY INTRODUCE A BILL PLACING NEW RESTRICTIONS ON AMERICAN BUSINESSES IN CHINA FOR EXAMPLE COMPANIES MIGHT LOSE EMBASSY AID IF THEY LET THE CHINESE COMMUNIST PARTY HOLD STUDY MEETINGS IN THEIR FACTORIES OR OFFICES EVEN THOUGH THESE GATHERINGS ARE MANDATED BY THE GOVERNMENT MANY BUSINESSPEOPLE AND EXPERTS ON CHINA BELIEVE IT'S TIME TO DROP SUCH MEASURES THEY SAY THAT LINKING HUMANRIGHTS CONCERNS SO CLOSELY TO TRADE ISSUES FAILS ON TWO COUNTS IT DOESN'T HELP POLITICAL DISSENTERS AND IT DOES CARRY AN ECONOMIC PRICE THEY WOULD RATHER SEE THE US SPEND MORE TIME EMPHASIZING NATIONAL INTERESTS SECURITY AND ECONOMIC DEVELOPMENT OVER NATIONAL VALUES SUCH AS HUMAN RIGHTS ONE WILL EVENTUALLY LEAD TO THE OTHER ANYWAY THEY ARGUE FOR INSTANCE HARRY HARDING A SINOLOGIST AT THE BROOKINGS INSTITUTION HERE CALLS ECONOMIC LIBERALIZATION THE MOST EFFECTIVE ENGINE OF SOCIAL CHANGE IN CHINA DEEPER AMERICAN BUSINESS INVOLVEMENT IN CHINA HE CONTENDS WILL BOTH SPEED POLITICAL CHANGE AND BRING THE US ECONOMIC GAINS IF AMERICANS FAIL TO EXPAND THEIR BUSINESS PRESENCE IN CHINA HE WARNS THE COMPETITION WILL GAIN AND THE US WILL LOSE JOHN YASINSKY WHO HEADS WESTINGHOUSE ELECTRIC CORP'S BOOMING CHINA TRADE AGREES CHINA HAS THE WORLD'S BIGGEST MARKET FOR ELECTRICITYGENERATING EQUIPMENT AND WESTINGHOUSE RECENTLY WON A CONTRACT TO UPGRADE 150 COALFIRED POWER PLANTS THERE MR YASINSKY HAS SEEN CHINESE SOCIETY RELAX ENORMOUSLY SINCE HARDLINE COMMUNIST DAYS THANKS LARGELY TO ECONOMIC REFORM AND HE BELIEVES THAT THE PRESENCE OF US BUSINESS HAS PLAYED A SUPPORTING ROLE IN THIS IF WE WALK AWAY HE SAYS WE'VE LOST ALL LEVERAGE MR KEATLEY A FORMER EDITOR AND PUBLISHER OF THE ASIAN WALL STREET JOURNAL IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9312100034 931210 BUSINESS BRIEF EXXON CORP CHALLENGE TO VALDEZ ACCORD IS REJECTED BY FEDERAL JUDGE A FEDERAL JUDGE IN ANCHORAGE ALASKA REJECTED EXXON CORP'S CHALLENGE TO A 98 MILLION SETTLEMENT OF CERTAIN CLAIMS ARISING FROM THE EXXON VALDEZ OIL SPILL AS REPORTED EXXON HAD SUED TO BLOCK THE SETTLEMENT BETWEEN ALYESKA PIPELINE SERVICE CO AND THOUSANDS OF NATIVE ALASKANS FISHERMEN AND OTHERS WHO ALLEGED DAMAGES AS A RESULT OF THE MARCH 1989 SPILL EXXON CLAIMED THAT THE SETTLEMENT INFRINGED ON ITS RIGHTS TO SEEK ARBITRATION AMONG OTHER THINGS THE SUIT HAD PUT EXXON WHICH OWNED THE EXXON VALDEZ SUPERTANKER THAT CRASHED IN PRINCE WILLIAM SOUND CAUSING THE OIL SPILL IN THE CURIOUS POSITION OF ESSENTIALLY SUING ITSELF ALYESKA IS OWNED BY EXXON AND OTHER BIG OIL COMPANIES THAT WORK ALASKA'S NORTH SLOPE ALYESKA'S EXECUTIVES COME FROM THEIR RANKS LATE WEDNESDAY FEDERAL JUDGE H RUSSEL HOLLAND RULED AGAINST THE MAIN CLAIMS IN EXXON'S LAWSUIT EFFECTIVELY KILLING ITS CHALLENGE OF THE SETTLEMENT EXXON CAN APPEAL IF IT DOESN'T MONEY MAY FINALLY BEGIN TO FLOW TO SOME OF THE PEOPLE DAMAGED BY THE SPILL EXXON COULDN'T BE REACHED TO COMMENT 9312100032 931210 MARKETING & MEDIA TURNER IS SAID TO BE CLOSE TO HIRING PRODUCER STEEL ATLANTA TURNER BROADCASTING SYSTEM INC IS CLOSE TO HIRING HOLLYWOOD PRODUCER DAWN STEEL TO RUN ITS TURNER PICTURES DIVISION TWO PEOPLE FAMILIAR WITH THE TALKS SAID TURNER HAS BEEN TRYING SINCE EARLY FALL TO PERSUADE AN EXECUTIVE WITH THE STATURE OF MS STEEL FORMER PRESIDENT OF COLUMBIA PICTURES TO HEAD THE DIVISION BUT TALKS BETWEEN MS STEEL WHO IS 47 YEARS OLD AND TURNER OFFICIALS HAVE HIT SNAGS OVER THE SCOPE OF HER RESPONSIBILITIES MS STEEL WAS SAID TO BE MORE INTERESTED IN A KEY PRODUCTION ROLE AT TURNER THAN AN EXECUTIVE POSITION THIS YEAR TURNER BROADCASTING AGREED TO BUY TWO FILM STUDIOS NEW LINE CINEMA CORP AND CASTLE ROCK ENTERTAINMENT BUT THOSE ENTITIES ARE EXPECTED TO OPERATE INDEPENDENTLY OF TURNER PICTURES OFFICIALS AT TURNER AND IN MS STEEL'S OFFICE DECLINED TO COMMENT 9312100031 931210 CHINA A SPECIAL REPORT BUSINESS PLAN CAPITAL IDEAS INVESTMENT BANKERS ARE FLOCKING TO CHINA THOUGH THERE AREN'T MANY DEALS FOR THEM TO MAKE BY JULIA LEUNG HONG KONG LOOK AROUND ANY CORNER IN CHINA THESE DAYS AND YOU'RE BOUND TO FIND A FOREIGN INVESTMENT BANKER THE ECONOMIC GOLD RUSH HAS ATTRACTED A SUSPENDERED CROWD WITH A RAVENOUS APPETITE BUT SO FAR LITTLE TO FEAST ON CLEARLY CHINA WANTS TO TAP THE INTERNATIONAL CAPITAL MARKETS TO FUEL ITS ROARING GROWTH PICKING UP THE SCENT MAJOR INVESTMENT BANKS FROM AROUND THE WORLD HAVE DESCENDED ON THE COUNTRY EXPANDING THEIR OFFICES IN NEIGHBORING HONG KONG AND SETTING OFF AN EXTRAORDINARY LOCAL BIDDING WAR FOR TALENT SIGNING FEES FOR SOME INVESTMENT BANKERS ARE RUMORED TO HAVE HIT 130000 WE'RE JUST PAYING MARKET PRICE FOR EXPERIENCED EXPERTS AND WE DON'T LOSE SLEEP OVER IT SAYS WERNER BONADURER HONG KONG BRANCH MANAGER FOR UNION BANK OF SWITZERLAND WHICH HAS DOUBLED ITS STAFF HERE TO 350 PEOPLE IN JUST 20 MONTHS AS IT TURNS OUT HOWEVER THE NUMBER OF CHINESE COMPANIES STRONG ENOUGH TO ISSUE DEBT OR EQUITIES IS SMALL INDEED GETTING THE BUSINESS MEANS LOBBYING LOTS OF BUREAUCRATS IN BEIJING AND EVEN THEN THERE'S LITTLE PROMISE OF SUCCESS SEVERAL EQUITY ISSUES HAVE FLOPPED DESPITE ALL THE HYPE ABOUT CHINA AND THAT'S LEFT UNDERWRITERS SADDLED WITH LOTS OF UNSOLD STOCK ONLY THREE YEARS AGO THE CHINA MARKET WAS ROUTINELY DISMISSED WHEN THE FLOW OF DEALS DRIED UP AFTER CHINA'S POLITICAL UPHEAVAL IN 1989 LEHMAN BROTHERS INC DISSOLVED A HIGHLEVEL CHINA TEAM IN NEW YORK AND HONG KONG IN EARLY 1991 MORGAN STANLEY & CO SHUT DOWN ITS INSTITUTIONAL BROKERAGE DIVISION IN HONG KONG THESE DAYS BOTH FIRMS ARE MOUNTING A COMEBACK OTHERS THAT PREVIOUSLY HAD ONLY A SKELETON STAFF IN HONG KONG SUCH AS GOLDMAN SACHS & CO ARE BEEFING UP THEIR PRESENCE SO FAR THIS YEAR THE GOVERNMENT AND VARIOUS ENTERPRISES IN CHINA HAVE RAISED MORE THAN 11 BILLION IN SALES OF EQUITIES AND 166 BILLION IN SALES OF DEBT SECURITIES OFFSHORE STILL BANKERS SAY MOST OF THE TRANSACTIONS WERE IN AMOUNTS BELOW 200 MILLION AND WERE THUS TOO SMALL TO APPEAL TO MAJOR INVESTMENT BANKS MOREOVER INVESTMENT BANKERS SAY THE ENDLESS AMOUNT OF LEGWORK AND COACHING REQUIRED TO GROOM A CHINESE COMPANY FOR A WESTERNSTYLE LISTING HAS RENDERED THE UNDERWRITING BUSINESS BARELY PROFITABLE IN HONG KONG WE SIT IN OUR OFFICE AND COMPANIES COME BEGGING FOR A LISTING IN CHINA IT'S THE OTHER WAY ROUND SAYS AN EXECUTIVE OF A BRITISH MERCHANT BANK HE ESTIMATES THAT IT IS COSTING HIM NEARLY THREE TIMES AS MUCH EFFORT TO COMPLETE AN UNDERWRITING IN CHINA AS IT DOES IN HONG KONG LAST JULY GOLDMAN SACHS SCORED A MAJOR COUP IN ARRANGING A 300 MILLION NOTES OFFERING IN THE US BY CHINA INTERNATIONAL TRUST & INVESTMENT CO MARKING THE FIRST YANKEE BOND OFFERING BY A CHINESE CONCERN ALL EYES ARE NOW ON THE NEXT MANDATE WHICH CHINA'S MINISTRY OF FINANCE WILL AWARD IT'S FOR AN ESTIMATED 500 MILLION IN YANKEE BONDS THAT WOULD BE CHINA'S LARGEST SINGLE BORROWING IN RECENT HISTORY MERRILL LYNCH & CO WHICH THE GOVERNMENT SEPARATELY HIRED AS A FINANCIAL ADVISER IS ONE OF THE COMPETITORS FOR THAT BUSINESS AND HAS SPENT A GOOD DEAL OF TIME INGRATIATING ITSELF WITH BEIJING IT WAS MERRILL THAT INVITED REPRESENTATIVES OF MOODY'S INVESTORS SERVICE INC TO CHINA TO RECONSIDER ITS DEBT RATING FOR THE NATION MOODY'S LATER UPGRADED THE RATING IN THE WEST THE PROCEDURE FOR LISTING EQUITIES IS OPEN AND THE REQUIREMENTS A COMPANY MUST MEET TO OBTAIN A LISTING ARE ALSO GENERALLY CLEAR NOT SO IN CHINA WHERE POLITICS TEND TO RULE TAKE THE SOCALLED BIG NINE THE COMPANIES BEIJING SAYS ARE AMONG THE BEST IN THE COUNTRY THE BIG NINE'S BALANCE SHEETS VARY WIDELY ACCORDING TO BANKERS WHO HAVE SEEN THEIR BOOKS STILL THE GOVERNMENT LIKES TO PORTRAY THEM ALL AS EXCELLENT CANDIDATES FOR A PUBLIC LISTING INVESTMENT BANKERS FIGURE THE GOVERNMENT IS JUST BOWING TO POLITICAL PRESSURE TO SPREAD ITS ACCOLADES AMONG A VARIETY OF COMPANIES CONTROLLED BY A VARIETY OF STATUSCONSCIOUS MINISTRIES AND DON'T BE SURPRISED TO FIND THAT IN A COUNTRY WHERE ACCESS TO INFORMATION ISN'T EQUAL COMPETITION ISN'T ALWAYS FAIR IN JULY MERRILL LYNCH AND PEREGRINE CAPITAL LTD COLED THE INITIAL PUBLIC OFFERING OF 375 MILLION IN SHARES OF SHANGHAI PETROCHEMICAL CO A MERRILL EXECUTIVE SAYS AN EARLY TIP FROM OFFICIALS IN BEIJING ABOUT THE PETROCHEMICAL COMPANY'S PLANS TO GO PUBLIC WAS CRUCIAL TO MERRILL'S BEATING OUT THE COMPETITION FOR THE BUSINESS BUT WINNING THE BUSINESS IN CHINA CAN BE A MIXED BLESSING THE COUNTRY AFTER ALL IS AN UNPREDICTABLE PLACE JUST BEFORE THE SHANGHAI PETROCHEMICAL OFFERING FOR EXAMPLE BEIJING FIRED THE COUNTRY'S CENTRALBANK GOVERNOR AND SET OUT TO REIN IN CHINA'S GALLOPING ECONOMY NOT THE BEST ENVIRONMENT FOR A SHARE OFFERING WHAT'S MORE PRICES FOR THE US LISTING OF CHINA TYRE HOLDINGS LTD HAD JUST COLLAPSED DAYS AFTER THAT STOCK'S INITIAL OFFERING FRIGHTENED US INVESTORS CANCELED ORDERS FOR SHANGHAI PETROCHEMICAL STOCK LEAVING PEREGRINE AND MERRILL LYNCH HOLDING THE BAG SHANGHAI PETROCHEMICAL'S STOCK DROPPED BELOW THE INITIAL OFFERING PRICE BUT LATER REBOUNDED LETTING MERRILL LYNCH UNLOAD ITS HOLDINGS AT A PROFIT IN THE VOLATILE COMPETITIVE NEW WORLD OF CHINA UNDERWRITING MERRILL FIGURED IT DIDN'T HAVE MUCH CHOICE BUT TO GO THE DISTANCE WITH SHANGHAI PETROCHEMICAL THIS IS MERRILL'S FIRST BIG CHINA EQUITY DEAL SAYS THE MERRILL LYNCH EXECUTIVE WE CAN'T AFFORD A FAILURE MS LEUNG IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HONG KONG BUREAU 9312100030 931210 BUSINESS BRIEF GREAT UNIVERSAL STORES PLC BRITISH FIRM'S PRETAX PROFIT ROSE 94 FOR SIX MONTHS BRITISH RETAILER GREAT UNIVERSAL STORES PLC REPORTED THAT PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 ROSE 94 PRETAX PROFIT ROSE TO 2132 MILLION 3192 MILLION FROM 1948 MILLION A YEAR EARLIER TOTAL SALES ROSE 12 TO 139 BILLION FROM 125 BILLION THE COMPANY ALSO RAISED ITS DIVIDEND 16 TO FOUR PENCE FROM 344 PENCE PROFIT ROSE AT THE COMPANY'S FOUR MAIN DIVISIONS AND IN OVERSEAS RETAILING THE MAIN DIVISIONS ARE ITS CATALOG OPERATIONS BURBERRYS AND SCOTCH HOUSE PROPERTY RENTALS AND ITS FINANCE UNIT 9312100029 931210 REGULATORY CHOKEHOLD LIFT THE ROADBLOCKS TO INTRASTATE TRUCKING BY CASSANDRA CHRONES MOORE IF THE CLINTON ADMINISTRATION REALLY IS SERIOUS ABOUT SPURRING ECONOMIC GROWTH IT SHOULD THROW ITS SUPPORT BEHIND THE BILL INTRODUCED BY REP BILL EMERSON R MO TO DEMOLISH THE REMAINING BARRIERS IN THE TRUCKING INDUSTRY IN 1980 WHEN CONGRESS DEREGULATED INTERSTATE TRUCKING THE ECONOMY BENEFITED TREMENDOUSLY THE DEPARTMENT OF TRANSPORTATION ESTIMATES THE GAIN TO US INDUSTRY IN SHIPPING MERCHANDISING AND INVENTORIES AT 38 BILLION TO 56 BILLION A YEAR BUT REGULATION AT THE STATE LEVEL ON TRUCKING WITHIN EACH STATE REMAINS IN PLACE COSTING AMERICAN BUSINESSES AND CONSUMERS 5 BILLION TO 12 BILLION A YEAR THE CURRENT WELTER OF STATE REGULATIONS DEFIES ALL LOGIC THE CALIFORNIA PUBLIC UTILITIES COMMISSION FOR EXAMPLE HAS DISCONTINUED RATE REGULATION OF HAY AND GRAIN HAULERS BUT CONTINUES TO REGULATE HAULERS OF LIVESTOCK SINCE 1980 RATES HAVE RISEN ABOUT 30 UNDER CONTROLS MOVING 2000 POUNDS OF GOODS FROM OAKLAND TO SAN FRANCISCO 15 MILES CAN COST NEARLY TWICE AS MUCH AS SHIPPING THE SAME AMOUNT FROM RENO 200 MILES TO SAN FRANCISCO SO SHIPPERS HAVE BEGUN WAREHOUSING INVENTORIES OUT OF STATE EXACERBATING CALIFORNIA'S BUDGET PROBLEMS AND EATING UP FUEL IN COLORADO SHIPPING 3000 POUNDS OF GOODS OVER 80 MILES WITHIN THE STATE CAN COST NEARLY 300 FOR LESS THAN 600 YOU CAN SHIP THREE TIMES THAT WEIGHT OVER 1000 MILES INTERSTATE ON THE INTERNATIONAL FRONT SHIPPING BLUE JEANS WITHIN TEXAS FROM EL PASO TO DALLAS COSTS ABOUT 40 MORE THAN SHIPPING THE IDENTICAL JEANS FROM TAIWAN TO DALLAS ALTHOUGH DISMANTLING STATE CONTROLS WOULD SEEM THE NEXT LOGICAL STEP AFTER DEREGULATING INTERSTATE TRUCKING EFFORTS TO DO SO ELICIT VEHEMENT PROTESTS FROM THE TEAMSTERS THE NATIONAL ASSOCIATION OF REGULATED UTILITY COMMISSIONERS NARUC AND THE PROTECTED FRANCHISEES THOSE RELATIVELY FEW FIRMS WHOSE EXCLUSIVE NICHE IS INTRASTATE TRUCKING EACH OF THESE GROUPS HAS A VESTED INTEREST IN PRESERVING ITS POWER RESOURCES AND PRESTIGE EACH CAMOUFLAGES ITS MORE PEDESTRIAN CONCERNS WITH HIGHFLOWN RHETORIC POLITICALLY ACTIVE WELL ORGANIZED AND WELL FINANCED THEY HOLD INTRASTATE SHIPPERS AND AMERICAN CONSUMERS HOSTAGE THE UNION OPPOSITION IS NOT HARD TO UNDERSTAND UNDER FEDERAL DEREGULATION EASED ENTRY LED TO AN EXPLOSION IN THE NUMBER OF CARRIERS AND LOWER RATES INCREASED COMPETITION BOTH NEW AND ESTABLISHED FIRMS FOUND UNIONIZATION AN EXPENSIVE OPTION NONUNION DRIVERS AND ASSISTANTS REPLACED UNION WORKERS THE TEAMSTERS SUSTAINED HEAVY LOSSES PERHAPS AS HIGH AS 200000 MEMBERS AND THE HEMORRHAGE DRAINED UNION COFFERS STATE PUBLIC UTILITY COMMISSIONERS WHO OVERSEE INTRASTATE HIGHWAY FREIGHT MOVEMENTS FACED AN INDIRECT THREAT SHOULD THE CONTAGION OF DEREGULATION SPREAD THEY MIGHT LOSE THEIR JOBS TO PROTECT THEM NARUC INTENSIFIED ITS LOBBYING EFFORTS CLEARLY NARROW SELFINTEREST IS AT WORK HERE BUT OF COURSE THE TEAMSTERS NARUC AND THE INTRASTATE FIRMS CLUSTERING IN THEIR SHADOW PREFER MORE RESPECTABLE ARGUMENTS AGAINST DECONTROL THE ABANDONMENT OF SERVICE TO SMALL COMMUNITIES THE MENACE TO PUBLIC SAFETY FROM A PROLIFERATION OF UNSUPERVISED CARRIERS BOTH ARGUMENTS WERE USED TO OPPOSE DEREGULATION IN THE LATE 1970S THEY ARE AS SPECIOUS NOW AS THEY WERE THEN THE EXPERIENCE OF THE EIGHT STATES THAT DO ALLOW INTRASTATE TRUCKING TO OPERATE FREELY DELAWARE NEW JERSEY FLORIDA ARIZONA ALASKA MAINE WISCONSIN AND VERMONT DEMONSTRATES THAT SUCH CONTENTIONS ARE RED HERRINGS NOT ONLY DOES SERVICE TO RURAL COMMUNITIES CONTINUE IT OFTEN IMPROVES IN SOME RURAL AREAS THE TOTAL NUMBER OF COMPETING INTERSTATE CARRIERS HAS ACTUALLY INCREASED SHIPPERS IN SMALL TOWNS GENERALLY REPORT A HIGH LEVEL OF SERVICE AND SATISFACTION SAFETY IS THE SECOND PLOY INCREASED COMPETITION OPPONENTS ARGUE WILL FORCE OPERATORS TO LOWER COSTS BY KEEPING OLDER VEHICLES ON THE ROAD CUTTING MAINTENANCE REDUCING WAGES AND FORCING DRIVERS TO EXTEND WORKING HOURS THE DATA FAIL TO SUBSTANTIATE THOSE FEARS THEY INDICATE THAT FEDERAL DEREGULATION HAS HAD LITTLE OR NO EFFECT ON SAFETY FIRST TRUCKING FIRMS THEMSELVES HAVE STRONG MOTIVES TO OPERATE SAFELY THEY TRADE ON THEIR REPUTATIONS FOR RELIABILITY ACCIDENTS ARE AN UNACCEPTABLE EXCUSE FOR FAILURE TO DELIVER INSURANCE CLAIMS DO LITTLE TO FURTHER PROFITABILITY OR TO ENCOURAGE SHIPPERS TO TRY THEM AGAIN SECOND LEGISLATION HAS HELPED IN THE 1980S THE PASSAGE OF THREE IMPORTANT BILLS FURTHERED THE CAUSE OF SAFER HIGHWAYS IN 1982 CONGRESS ENACTED THE MOTOR CARRIER SAFETY ASSISTANCE PROGRAM TO ENHANCE STATE SAFETY PROGRAMS WITH MORE INSPECTIONS ROAD SAFETY INSPECTIONS JUMPED ALMOST TENFOLD IN THREE YEARS FROM 160000 IN 1984 TO 12 MILLION IN 1987 THE MOTOR CARRIER SAFETY ACT OF 1984 PROVIDED A SPECIFIC LINK BETWEEN DEREGULATED TRUCKING AND SAFETY BY AIMING TO DEVELOP A CENTRALIZED UNIFORM SET OF SAFETY CONTROLS AND INCREASED ENFORCEMENT EFFORTS FINALLY IN 1986 THE COMMERCIAL MOTOR VEHICLE SAFETY ACT SET IN MOTION A PROCESS LEADING TO A SINGLE COMMERCIAL VEHICLE DRIVER'S LICENSE WITH PENALTIES FOR DRUG ABUSE WHILE DRIVING NO LONGER WOULD UNSAFE DRIVERS BE ABLE TO CONTINUE WORKING BY JUMPING FROM ONE STATE TO THE NEXT TAKEN AS A WHOLE THE SAFETY MEASURES HELP TO EXPLAIN THE DECLINING TREND OF TRUCK ACCIDENTS PER TONMILE OVER THE PAST 12 YEARS THERE HAS BEEN NO UPSURGE OF TRUCKING ACCIDENTS IN THE EIGHT DEREGULATED STATES WHAT ARE THE OPTIONS FOR CHANGE BATTLING LEGISLATORS STATE BY STATE WILL BE LONG AND COSTLY MAINTAINING THE STATUS QUO PERPETUATES THE ECONOMIC DRAG TO ENCOURAGE THE STATES TO SEEK UNIFORMITY BETWEEN STATE AND FEDERAL REGULATIONS VOLUNTARILY APPEARS FRUITLESS THERE REMAINS THE POSSIBILITY OF PREEMPTING STATE JURISDICTION IN WHOLE OR IN PART AS REP EMERSON'S BILL WOULD DO GIVEN AN ASSIST FROM THE ADMINISTRATION THE PROSPECT OF BROADENED FEDERAL POWER INSPIRES CAUTION BUT THE COUNTRY CAN NO LONGER AFFORD THE REGULATORY CHOKEHOLD THAT SLOWS ALL 50 STATES AND IMPEDES US ABILITY TO COMPETE IN THE GLOBAL ECONOMY MS MOORE OF PALO ALTO CALIF IS AN ADJUNCT SCHOLAR OF THE COMPETITIVE ENTERPRISE INSTITUTE 9312100028 931210 CHINA A SPECIAL REPORT COVER CRACKING THE CHINA MARKET YES YOU MAY LOSE EVERYTHING AND YES THE HASSLES ARE MONUMENTAL BUT NOW MAY BE THE TIME TO TAKE THE LEAP STEP INTO A CORPORATE BOARDROOM THESE DAYS AND YOU CAN ALMOST HEAR THE HEARTS POUNDING THE TOPIC OF CONVERSATION CHINA THE NEXT GREAT BUSINESS FRONTIER THE LAND OF BOUNDLESS PROFIT THE HYPE IS EXTRAORDINARY AND WHY NOT CHINA'S NUMBERS ARE STAGGERING ECONOMIC GROWTH BOOMING AT 13 A YEAR FACTORY OUTPUT UP 23 RETAIL SALES SOARING A MAILING LIST OF 117 BILLION CUSTOMERS CHINA'S ECONOMIC TRANSFORMATION BORN IN A SHIFT TO FREE MARKETS IN 1978 IS RAPIDLY COMING OF AGE AND IT HAS MOUTHS WATERING THROUGHOUT THE BUSINESS WORLD IT ALSO HAS STOMACHS CHURNING FOR WHILE SOME FOREIGNERS MAY BE MAKING HAY IN CHINA THE ROLL CALL OF DEAD AND DYING EXPATRIATE ENTERPRISES THERE IS ALSO CHILLINGLY LONG CHINA IS NO SURE BET TALK FOR INSTANCE TO THE FOREIGN COMPANY THAT IMPORTED DEFECTIVE CANNED FRUIT FROM ITS CHINESE PARTNER AND WATCHED THE CANS EXPLODE IN THE WAREHOUSE ONE NIGHT OR SPEND SOME TIME WITH THE FOREIGN BUSINESSMAN IN CHINA WHO OFFERS THIS CALCULUS ON CORRUPTION TO GET A SMALL CONTRACT SAY 20000 I FIGURE IT'S A COUPLE DINNERS OUT AND BOWLING FOR A 250000 CONTRACT IT'S A FAMILIARIZATION' TRIP FOR THE OFFICIAL TO THE STATES A CONTRACT OF A MILLION AND ABOVE THEN WE'RE TALKING ABOUT HELPING GET A VISA FOR THE GUY'S SON SOUND RAW THAT'S CHINA WHERE EVERYONE NOT JUST THE FOREIGNER IS OUT TO MAKE A BUCK THE NAME OF ONE EATERY IN SHANGHAI MAKES IT ALL ABUNDANTLY CLEAR THE GET RICH SEAFOOD RESTAURANT OUTSIDE GUANGZHOU IN BOOMING SOUTHEASTERN CHINA A VISITOR STOPS A MAN TO ASK FOR DIRECTIONS AND GETS THIS REPLY SURE I'LL TELL YOU IF YOU PAY ME SO IF YOU'RE TRYING TO DECIDE WHETHER TO TAKE A GAMBLE ON INVESTING IN CHINA THINK FIRST ABOUT THIS YOU'LL LOSE MONEY AT THE START YOU'LL LIKELY LOSE MONEY LONG AFTER THAT YOU'LL GET FRUSTRATED YOU'LL SPEND LONGER IN STARTUP THAN PLANNED YOU'LL SPEND LONGER GETTING THE LIGHTS TO WORK THAN YOU'D HOPED YOU'LL BE ROCKED BY POLITICS YOU'LL GET SANDBAGGED BY YOUR CHINESE PARTNERS YOU'LL DISCOVER THAT THERE ARE NOWHERE NEAR 117 BILLION CUSTOMERS BUT NOW CONSIDER THIS IF YOU DON'T TAKE THE DIVE INTO CHINA YOU MAY BE MISSING THE BIGGEST SALES OPPORTUNITY OF YOUR GENERATION IT COULD TAKE YEARS FOR YOUR INVESTMENT TO BEAR FRUIT BUT RIGHT NOW WHILE THE MARKET'S STILL IMMATURE WHILE THE COMPETITION IS AS DAZED AND DISORIENTED AS YOU ARE MAY WELL BE THE TIME TO MAKE THE JUMP CHINA MAY PITCH INTO CONVULSIONS TOMORROW BUT THAT WILL ALWAYS BE A RISK AND REMEMBER THAT'S ALSO WHAT PEOPLE WERE SAYING ABOUT JAPAN IN THE 1950S SO WHAT NOW HOW DO FOREIGN COMPANIES AND ENTREPRENEURS GET STARTED IN CHINA HOW DO THEY BEGIN TO UNDERSTAND THE RUGGED BUSINESS HORIZON AND THE POSSIBILITIES IT HOLDS THE WALL STREET JOURNAL PUT MORE THAN 20 REPORTERS AND RESEARCHERS ON THE CHINA INVESTMENT STORY THEIR OBJECTIVE WAS STRAIGHTFORWARD TO DESCRIBE WHAT LURKS OUT THERE TO SIZE UP THE OPPORTUNITIES TO PLANT FLAGS AROUND THE MINEFIELDS HERE'S WHAT THEY FOUND 9312100026 931210 CHINA A SPECIAL REPORT BUSINESS PLAN ROUND AND ROUND TO SURVIVE YOUR BUSINESS NEGOTIATIONS YOU'LL NEED PATIENCE SKILL AND PERHAPS AN EXTRA COAT BY SARAH LUBMAN LET A HUNDRED RENEGOTIATIONS BLOOM FOR IN CHINA THERE'S NO END TO THE ART OF THE DEAL JUST WHEN YOU THOUGHT YOU HAD PINNED DOWN EVERY LAST DETAIL YOUR COUNTERPART SMILES AND STARTS AGAIN AT THE TOP OF THE LIST INDEED NEGOTIATING IN CHINA WILL TEST YOUR CUNNING YOUR SENSE OF HUMOR AND YOUR DIGESTIVE TRACT YOU HAD BETTER LEARN QUICKLY BECAUSE THE PERSON ACROSS THE TABLE HAS ALL SORTS OF STRATEGIES TO WEAR YOU DOWN SUCH AS LITERALLY GIVING YOU THE COLD SHOULDER THAT'S WHAT HAPPENED TO CLINTON DINES WHO REMEMBERS VIRTUALLY BEING HELD HOSTAGE IN REMOTE XIANGFAN IN 1980 WHEN HIS EFFORTS TO BUY BALL BEARINGS FROM A CHINESE FACTORY HIT AN IMPASSE AT THE TIME HE WAS WORKING FOR JARDINE MATHESON HOLDINGS LTD AND HE HAD TRAVELED TO XIANGFAN IN THE MIDDLE OF WINTER TO WRAP UP CONTRACT DISCUSSIONS INSTEAD FACTORY OFFICIALS SUDDENLY JACKED UP THEIR PRICE IT WAS FREEZING COLD AND THE GUEST HOUSE AT THE FACTORY HAD NO HEAT MR DINES RECALLS THERE WAS NO HOT WATER AND NO SHOWER I WORE GLOVES IN THE DINING ROOM AFTER FOUR DAYS OF HAGGLING MR DINES DECIDED TO LEAVE TOWN NO WAY SAID THE OFFICIALS THEY TOLD MR DINES THAT THEY COULDN'T GET HIM A TRAIN TICKET AND THAT THE SHUTTLE VAN TO THE STATION WAS BUSY WITH OTHER THINGS IT REMAINED BUSY FOR TWO DAYS MR DINES STOOD HIS GROUND SHIVERING FINALLY EMBARRASSED THE CHINESE LET HIM GO THEY FIGURED ONCE THEY GOT SOMEONE IN THEIR CLUTCHES THEY'D CHANGE THE PRICE SAYS MR DINES WHO ADVISES NOT GIVING AN INCH WHEN BULLIED A LOT HAS CHANGED SINCE THEN BUT RENEGOTIATING THE DEAL IS STILL A FAVORITE TACTIC IN CHINA HERE ARE SOME OTHERS MANIPULATING THE DEADLINE FOREIGNERS PARTICULARLY AMERICANS ARE IMPATIENT EVERYONE KNOWS IT AND THE CHINESE ARE EXPERTS AT PLAYING IT TO THEIR ADVANTAGE SAYS RICHARD H SOLOMON FORMER ASSISTANT SECRETARY OF STATE WHEN HENRY KISSINGER WENT TO BEIJING IN 1975 TO NEGOTIATE A COMMUNIQUE CHINESE OFFICIALS KEPT HIM ON EDGE UNTIL THE LAST MOMENT THEY INVITED US OUT TO A PICNIC IN THE WESTERN HILLS MR SOLOMON SAYS KISSINGER WAS GOING CRAZY INSTEAD OF NEGOTIATING THE CHINESE WERE DRAGGING THINGS OUT THEN THEY GAVE HIM AN UNACCEPTABLE DOCUMENT AT MIDNIGHT ON THE LAST DAY OF HIS VISIT HOPING THE AMERICANS WOULD CAVE IN RATHER THAN MISS THEIR SELFIMPOSED DEADLINE THE LESSON DON'T GO TO CHINA HAMSTRUNG BY A SPECIFIC TIMETABLE THERE'S ALWAYS ROOM FOR MORE NEGOTIATION SAYS MR SOLOMON SWITCHING NEGOTIATORS MR DINES CITES ONE RECENT DEAL IN WHICH AFTER FOUR YEARS OF TALKS THE CHINESE SIDE CAME TO THE TABLE WITH A NEW OFFICIAL AND A NEW CONTRACT THE AUSTRALIAN SIDE REVOLTED AND CANCELED THE DEAL A WEEK LATER THEIR BLUFF CALLED THE CHINESE REINSTATED THE FORMER TERMS IF THIS HAPPENS TO YOU STICK TO YOUR GUNS KEEP IN MIND THAT CHINA IS HEAVILY BUREAUCRATIC AND THAT YOUR COUNTERPARTS MAY NOT WANT THE NEW OFFICIAL AT THE TABLE ANY MORE THAN YOU DO PSYCHING YOU OUT DURING NEGOTIATIONS EVERY GESTURE HAS A DEEPER MEANING EVEN THE FRIENDLY BANQUET JOSEPH MASSEY A US TRADE NEGOTIATOR FROM 1987 TO 1992 REMEMBERS ONE FANCY DINNER THAT THE CHINESE THREW FOR THEIR AMERICAN COUNTERPARTS ARRAYED OVER HUGE MOUNDS OF RICE MR MASSEY SAYS WAS THE SPECIALTY OF THE HOUSE MARINATED DEEPFRIED SCORPIONS WITH THEIR STINGERS INTACT IT WAS BOTH A JOKE AND A TEST SAYS MR MASSEY WHO DOWNED THE DELICACY YOU HAD TO LAUGH AND PASS THE TEST TO MAINTAIN THE FICTION OF CORDIALITY FOR THE CURIOUS FRIED SCORPION TASTES WELL LIKE FRIED GRASSHOPPER PLAYING THE UNDERDOG WE'RE JUST A POOR COUNTRY SO YOU SHOULD GIVE US SPECIAL CONCESSIONS WHEN YOU HEAR THAT LINE AND YOU WILL HEAR IT BUY INTO IT AT YOUR OWN RISK AND REMEMBER JAPAN ALSO USED TO PLEAD POVERTY OTHER RULES TO KEEP IN MIND THE NEGOTIATIONS WILL ALWAYS CONTINUE EVEN AFTER THE DEAL IS DONE THE CHINESE BELIEVE THERE IS A WINNER AND A LOSER IN EVERY TRANSACTION ONLY SENIOR OFFICIALS HAVE THE AUTHORITY TO SPEND MONEY SO DON'T ASSUME YOUR NEGOTIATING ADVERSARY CAN MAKE THE COMMITMENT THE CHINESE NEGOTIATE NOT TO TIE UP EVERY LOOSE END BUT TO DEVELOP A RELATIONSHIP AND A COMMITMENT TO WORK TOGETHER IT'S SOMETIMES BEST TO DELIVER A TOUGH MESSAGE THROUGH A THIRD PARTY DON'T LET YOUR CHIEF EXECUTIVE OFFICER FLY IN GET ENCHANTED AND MAKE A PROMISE THAT WILL LATER HANDCUFF YOUR NEGOTIATORS THE CHINESE LOVE IT WHEN THEY KNOW A COMPANY'S NEGOTIATORS ARE UNDER PRESSURE FROM THE BOSS TO CLOSE THE DEAL MS LUBMAN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9312100025 931210 CHINA A SPECIAL REPORT FROM MAO TO NOW A LOOK AT SOME OF THE TURNS THAT CHINA HAS TAKEN ON ITS LONG MARCH FROM COMMUNISM TO CAPITALISM OCT 1 1949 TODAY THE CHINESE PEOPLE HAVE STOOD UP DECLARES MAO TSETUNG AS HE LEADS HIS COMMUNIST PARTY TO POWER AFTER HALF A CENTURY OF CIVIL STRIFE 9312100024 931210 CHINA A SPECIAL REPORT QUESTIONS & ANSWERS THE BIG QUESTION IS CHINA TOO UNSTABLE MY BIGGEST CONCERN THE MEMORIES OF BEIJING'S POLITICAL UPHEAVAL IN 1989 AND THE SHOOTINGS IN TIANANMEN SQUARE ARE STILL FRESH IN MY MIND WHAT COULD GO WRONG IN CHINA THAT MIGHT ENDANGER MY INVESTMENT LOTS CHINA HAS HAD ITS SHARE OF RADICAL AND VIOLENT SWINGS OVER THE YEARS FOR MANY ACCOUNTANTS CHINA IS SYNONYMOUS WITH DISCONTINUED OPERATIONS SCORES OF COMPANIES HAVE STARTED BUSINESSES THERE BAILED OUT STARTED UP AGAIN AND PULLED THE RIPCORD ONE MORE TIME AS CHINA LURCHED FROM ONE CRISIS TO THE NEXT THIS ISN'T A MARKET FOR THE FAINT OF HEART OR THE POLITICALLY NAIVE CHINA HAS ALL OF THE INTERNAL PRESSURES AND THEN SOME THAT HAVE LED TO CONVULSIONS IN OTHER DEVELOPING NATIONS THE SIZE OF ITS POPULATION THE LACK OF CLEAR LEADERSHIP SUCCESSION ITS IMMATURE ECONOMIC CONTROLS ITS REMAINING COMMUNIST HARDLINERS AND EVEN ITS FRACTIOUS RELATIONS WITH THE WEST ANY OF THESE FACTORS GIVEN THE RIGHT CIRCUMSTANCES COULD PUSH CHINA TO THE EDGE OF COURSE CHINA HAS EVERYTHING TO GAIN FROM STABILITY AND IS LOATH TO BITE THE CAPITALIST HAND THAT'S FEEDING IT PROPONENTS OF THAT VIEW LIKE TO SAY THE GENIE IS OUT OF THE BOTTLE MEANING THAT CHINA IS MUCH TOO FAR DOWN THE ECONOMICLIBERALIZATION ROAD TO MAKE A DETOUR NOW AND THEY MAY BE RIGHT STILL TRY USING THAT LINE ABOUT THE GENIE ON THE HUNDREDS OF STUDENTS WHO WERE SHOT AT TIANANMEN IN 1989 11 YEARS AFTER LIBERALIZATION BEGAN OR ON THE BUSINESSPEOPLE WHO SAW THEIR CREDIT DRY UP AND THEIR CUSTOMERS DISAPPEAR IN THE FRIGHTENING MONTHS THAT FOLLOWED IN MANY WAYS THIS REMAINS A SURPRISINGLY FRAGILE NATION NO MATTER HOW CONFIDENT YOU ARE THAT CHINA CAN MAINTAIN ECONOMIC STABILITY YOU'RE WISE TO KEEP A CLOSE WATCH ON ITS INTERNAL AFFAIRS IF YOU DON'T WANT YOUR INVESTMENT IN CHINA TO GET BLINDSIDED HERE ARE A FEW THINGS THAT EXPERTS SAY COULD TRIP UP CHINA A TROUBLED POLITICAL SUCCESSION PARAMOUNT LEADER DENG XIAOPING 89 YEARS OLD ISN'T GETTING ANY YOUNGER THERE'S NO CLEAR SUCCESSOR AND JOCKEYING FOR THE TOP JOB WHEN DENG DIES COULD CAUSE INSTABILITY TAKE HEART THOUGH MOST OF THE LIKELY CANDIDATES ARE ECONOMIC REFORMERS OF ONE STRIPE OR ANOTHER CORRUPTION IT'S GETTING WORSE CHINA'S HIGHLY REGULATED ECONOMY GIVES CADRES PLENTY OF OPPORTUNITY TO STICK A HAND IN THE TILL THEY AREN'T MISSING A CHANCE DISCLOSURE OF A MAJOR SCANDAL AT THE TOP COULD UNDERCUT INVESTOR CONFIDENCE OR IF IT GETS BAD ENOUGH CORRUPTION COULD SIMPLY MAKE IT IMPOSSIBLE TO DO BUSINESS IN CHINA A FRAGMENTING STATE IN AN ECONOMIC SENSE THERE ARE CENTRIFUGAL FORCES AT WORK IN CHINA WITH THE COASTAL AND SOUTHERN CITIES BECOMING EMPOWERED MUCH FASTER THAN THE INLAND REGIONS IF THE GAP BETWEEN RICH AND POOR WIDENS COULD CHINA SPLIT APART MOST CHINA WATCHERS SAY PROBABLY NOT BUT THEY DON'T COUNT OUT SOME DEGREE OF UNREST PEASANTS IN SOME FARMING AREAS HAVE ALREADY RIOTED AND THERE'S INCREASED MIGRATION TO THE CITIES BY UNEMPLOYED LABORERS RAPID MODERNIZATION AND UNEVEN OPPORTUNITY OFTEN BEGET FRUSTRATED EXPECTATIONS IF THAT HAPPENS IN CHINA ON A BIG SCALE WATCH OUT ON THE BRIGHT SIDE THOUGH MOST CHINESE ARE FEELING RICHER THESE DAYS THAN AT ANY TIME IN THEIR LIVES NOT A LOT OF REASON TO ROCK THE BOAT A BLOWUP WITH WASHINGTON NAME YOUR FLASHPOINT HUMAN RIGHTS MOSTFAVOREDNATION TRADE STATUS ARMS SALES IF SOMEHOW CHINA IS DENIED ACCESS TO THE KEY US MARKET WATCH THOSE EXPORT NUMBERS PLUNGE THOSE FACTORY DOORS CLOSE THOSE UNEMPLOYMENT NUMBERS RISE FICKLE CAPITAL IT'S POURING IN RIGHT NOW THANKS TO ALL THE BLUSHING EXCITEMENT ABOUT THE CHINESE MARKET BUT CAPITAL CAN ALSO POUR OUT A FINANCIAL SCARE SOMEWHERE IN THE WORLD OR A CHANGE IN INVESTMENT SENTIMENT ABOUT CHINA COULD SORELY TAX THE COUNTRY'S FINANCIAL SYSTEM IT MIGHT PROVE INCAPABLE OF COPING AVARICE THOSE BILLBOARDS THAT USED TO SHOW REDCHEEKED SOCIALIST WORKERS STRIDING TRIUMPHANTLY INTO CHINA'S FUTURE NOW PITCH MARLBOROS AND MAXWELL HOUSE IN SHEKOU IN THE SOUTH ONE HUGE SIGN READS SIMPLY TIME IS MONEY THE FRANTIC RACE AFTER WEALTH IS NEARLY UNIVERSAL IN CHINA AND HAS ALREADY LED TO STUNNING SPECULATIVE RUNUPS IN REAL ESTATE AND STOCKS FINANCIAL BINGES HAVE A WAY OF ENDING IN COLLAPSE INCOMPETENCE CHINA'S BUREAUCRATS ARE NEW TO MANAGING A SEMIMARKET ECONOMY THEY MAY JUST GET IT WRONG THIS YEAR THE CENTRAL BANK TRIED TO RESTRICT CREDIT TO SLOW THE HURTLING ECONOMY AND BRING DOWN INFLATION WITHIN MONTHS THOUGH A HUE AND CRY FROM THE POWERFUL COASTAL PROVINCES FORCED THE BANK TO RELAX ITS GRIP REGULATORY DISCIPLINE HASN'T YET CAUGHT ON IN THE NEW CHINA SEE RELATED ARTICLE WHAT WHY AND HOW FOR THE HOST OF QUESTIONS THAT WILL NO DOUBT SPRING TO MIND SOME CONSIDERED ANSWERS WSJ DEC 10 1993 9312100023 931210 LETTERS TO THE EDITOR THE MYSTICAL KINGDOM OF MEMORY AS A RETIRED PSYCHOANALYST I WAS VERY ENCOURAGED BY YOUR DEC 1 EDITORIAL TRIAL BY ACCUSATION WHICH DISCUSSES HOW RECOVERED MEMORY OF CHILD ABUSE IS BEING USED AS A POTENT LEGAL WEAPON IN CUSTODY BATTLES BETWEEN DIVORCING PARENTS AND OTHER CASES TOWARD THE END OF MY CAREER IT BECAME FASHIONABLE AMONG THERAPISTS WITH VARIOUS DEGREES OF TRAINING AND COMPETENCE TO SEARCH ASSIDUOUSLY FOR CASES OF CHILDHOOD SEXUAL ABUSE AMONG THEIR PATIENTS AND TO DEMONSTRATE THEIR FINDINGS WITH THE PRIDE OF A HUNTER DISPLAYING A TROPHY IT OFTEN SEEMED TO ME THAT THE MORE SUPERFICIAL THE TRAINING THE GREATER THE EAGERNESS IN NO WAY WILL I DENY THAT SEXUAL ABUSE OF CHILDREN OCCURS AND MAY HAVE DELETERIOUS EFFECTS AND MAYBE AT TIMES CAUSING LITTLE OR NO DAMAGE IT IS ALSO WELLDEMONSTRATED THAT ALL HUMAN BEINGS FORM SEXUAL FANTASIES IN THEIR CHILDHOOD AND THAT THE PROTAGONISTS OF THESE FANTASIES MOST OFTEN ARE THEIR PARENTS THESE FANTASIES ARE AT TIMES DEVASTATING BUT AT OTHER TIMES THEY SEEM TO HAVE LITTLE OR NO CONSEQUENCES AN ALMOST ACCIDENTAL FINDING DURING THERAPY OR PSYCHOANALYSIS THE IMPORTANT THING TO REMEMBER IS THAT THERE IS ABSOLUTELY NO WAY TO DISTINGUISH BETWEEN FACT AND FANTASY THE HUMAN MEMORY IS HIGHLY FALLACIOUS AND THE MORE THIS IS RECOGNIZED AMONG JUDGES JURIES LAWYERS HISTORIANS JOURNALISTS AND THERAPISTS THE BETTER HERE'S AN EXAMPLE FROM OWN LIFE DURING A WALK WITH MY PARENTS WHEN I WAS ABOUT THREEANDAHALF YEARS OLD WE PASSED A LITTLE SWIMMING HOLE BY AN OLD WATER MILL FIVE LITTLE GIRLS WERE BATHING IN THE POOL AND MADE NO ATTEMPT TO HIDE THEIR NAKEDNESS I OBSERVED THEM CAREFULLY AND SAW THAT EACH OF THEM HAD A LITTLE PENIS AND NONE OF THEM A SCROTUM MANY YEARS OF PSYCHOANALYSIS HAVE NOT BEEN ABLE TO CHANGE THIS PICTURE WHICH I CAN STILL SEE BY MEANS OF MY INNER VISION WITH COMPLETE CLARITY I WOULD PROBABLY HAVE TO STATE UNDER OATH IN A COURT THAT I REALLY SAW FIVE SMALL HERMAPHRODITES FOR THE BENEFIT OF ANY TROPHYHUNTING THERAPIST WHO MAY READ THIS I WOULD LIKE TO STATE THAT IT IS EXTREMELY UNLIKELY THAT THIS WAS THE CASE IT IS NOT EVEN CERTAIN THAT I TOOK THIS WALK WITH MY PARENTS OR THAT I PASSED ANY SWIMMING HOLE OR THAT I SAW FIVE OR ANY OTHER NUMBER OF NAKED GIRLS WHAT IS CERTAIN IS THAT I HAVE THIS CLEAR AND CONVINCING MEMORY OF SOME FACTS FROM MY EARLY CHILDHOOD OF SUCH IS THE KINGDOM OF MEMORY 9312100022 931210 LEISURE & ARTS ON SPORTS TEAM USA AND THE NHL ON THIN ICE BY FREDERICK C KLEIN ATLANTA THE WINTER OLYMPICS ARE BUT TWO MONTHS OFF AND THE HOCKEY TEAM THAT WILL REPRESENT THE US IS MORE THAN TWOTHIRDS THROUGH THE BARNSTORMING MARATHON THAT THE BRUISING SPORT'S OVERSEERS DEEM NECESSARY TO PREPARE IT FOR THE GAMES BUT ASK COACH TIM TAYLOR WHO'LL WEAR THE RED WHITE BLACK AND BLUE ON THE ICE AT LILLEHAMMER NORWAY COME THE TEAM'S FEB 13 OLYMPIC OPENER AND HE CAN ONLY SHRUG THAT HAS BEEN THE MOST FRUSTRATING ASPECT OF MY JOB HE SAYS IT'D BE NICE TO KNOW WHAT PLAYERS WILL BE AVAILABLE TO ME THE SOURCE OF TAYLOR'S FRUSTRATION IS THE MEMBER CLUBS OF THE NATIONAL HOCKEY LEAGUE THEY HOLD THE PROFESSIONAL RIGHTS TO JUST ABOUT ALL OF THE YOUNG MEN ON THE US ROSTER AND SINCE THE TEAM FIRST CONVENED IN EARLY AUGUST HAVE USED THEM TO SNATCH AWAY SEVERAL OF THE MOST PROMISING AND PLAY YOYO WITH SOME OTHERS TAYLOR IS A SMART FELLOW HE WAS GRADUATED FROM HARVARD UNIVERSITY AND IS ON LEAVE AS THE COACH AT YALE WHILE HE SHEPHERDS TEAM USA THUS HE IS LOATH TO APPEAR UNDULY CRITICAL OF THE NHL EXECS WITH WHOM HE MUST DEAL FOR THE SERVICES OF PLAYERS HE COVETS BUT HE ADMITS HE ISN'T SURPRISED BY THE STATE OF HIS TEAM'S RELATIONS WITH HOCKEY'S MAJOR LEAGUE WE'VE BEEN TREATED THE WAY WE ANTICIPATED HE SAYS IF I WAS AN NHL EXECUTIVE I'D WANT TO HOLD ON TO ANY PLAYER I THOUGHT MIGHT HELP ME WIN WE UNDERSTAND THAT THAT'S THEIR BUSINESS NONE OF THE ABOVE SHOULD SUGGEST THAT THE US WILL BE POORLY REPRESENTED IN HOCKEY AT LILLEHAMMER THE GROUP TAYLOR HAS ASSEMBLED STILL IN THE MIDST OF A SEVENGAMESIN12NIGHTS TOUR WITH A RUSSIAN OUTFIT THAT BROUGHT IT TO ATLANTA ON TUESDAY HAS ACQUITTED ITSELF WELL TO DATE AND ITS 25WIN 11LOSS FIVETIE RECORD THROUGH THAT CONTEST MOSTLY AGAINST GOOD COMPETITION INDICATES IT WOULDN'T TAKE A MIRACLE FOR IT TO WIND UP BEMEDALED BY MANY ACCOUNTS IT'S THE SWIFTESTSKATING US TEAM IN MEMORY AND ITS BALANCE COMPENSATES FOR ITS LACK OF STARS BUT THE NHL'S ATTITUDE TOWARD TEAM USA DESERVES MORE THAN PASSING COMMENT HERE IS A LEAGUE THAT LONG HAS LACKED A US NETWORKTELEVISION CONTRACT ONE THAT BRINGS UP THE REAR IN ANY RANKING OF THIS LAND'S MAJOR TEAM SPORTS SAVE THE ONE FOR SHORTSIGHTEDNESS YET DESPITE THE EXAMPLE OF THE NATIONAL BASKETBALL ASSOCIATION'S DREAM TEAM COUP AT THE 1992 SUMMER GAMES IT'S NOT ONLY PASSING UP A RARE CHANCE FOR A WORLD SHOWCASE FOR ITS BEST PLAYERS BUT HAS BEEN GRUDGING IN ALLOWING ITS SPARES TO COMPETE TO BE SURE THERE ARE DIFFERENCES BETWEEN THE NBA AND NHL IN MATTERS OLYMPIC WHEREAS BASKETBALL'S OLYMPIC CLASSIFICATION AS A SUMMER SPORT ALLOWED US AND OTHER PROS TO COMPETE WITHOUT CONFLICTS THE NHL WOULD HAVE TO SUSPEND ITS NORMAL ACTIVITIES TO JOIN THE WINTER GAMES AND WHILE JUST ABOUT ALL THE NBA'S STARS ARE AMERICAN THE NHL'S PLAYERNATIONALITY BREAKDOWN OF ROUGHLY 60 CANADIAN 20 AMERICAN AND 20 EUROPEAN COMPLICATES ITS DIPLOMATIC DIFFICULTIES THE NHL PLEADS LACK OF TIME TO PREPARE FOR AN ALLOUT EFFORT FOR LILLEHAMMER COMMISSIONER GARY BETTMAN A FORMER NBA EXEC HAS SAID HE WANTS HIS LEAGUE TO BE A GOOD MEMBER OF THE WORLD HOCKEY COMMUNITY INCLUDING EVENTUAL OLYMPIC PARTICIPATION BUT AN NHL SPOKESMAN SAID BETTMAN'S TENURE IN THE POST HE STARTED IN FEBRUARY HASN'T BEEN LONG ENOUGH TO IMPLEMENT THAT DESIRE HE DIDN'T SAY WHY THE LEAGUE NEEDED BETTMAN TO PLANT THE THOUGHT THE SPOKESMAN DID HAVE A THEORY ABOUT WHY NHL MEMBERS HAVE BEEN LESS THAN FORTHCOMING ABOUT FREEING INDIVIDUAL PLAYERS FOR TEMPORARY DUTY WITH THE US OR CANADIAN OLYMPIC TEAMS TOO MUCH PATRIOTIC FERVOR COULD PUT A TEAM AT A COMPETITIVE DISADVANTAGE HE OBSERVED FOR THE US TEAM EXHIBIT A IN PROBLEM NHL IS DEREK PLANTE THE 22YEAROLD FORWARD A COLLEGIATE ALLAMERICAN AT THE UNIVERSITY OF MINNESOTADULUTH WENT TO SUMMER TRAINING CAMP WITH THE OLYMPIANS AND TAYLOR SAYS WOULD HAVE BEEN OUR MARQUEE PLAYER IF HE HADN'T BEEN PLUCKED AWAY BY HIS PRO CLUB THE BUFFALO SABRES LITTLEUSED THERE AT FIRST PLANTE WAS PRESSED INTO SERVICE AFTER AN INJURY TO SABRE STAR PAT LAFONTAINE AND HAS PERFORMED WELL SINCE IT'S REPORTEDLY UP TO HIM WHETHER HE'LL REJOIN TEAM USA NEXT MONTH BUT THE SABRES HAVE INDICATED THEY'D LIKE HIM TO STAY AND IT WOULD BE UNDERSTANDABLE IF HE WERE RELUCTANT TO DISPLEASE HIS CURRENT AND FUTURE EMPLOYER TED DRURY ANOTHER EARLY STANDOUT WAS CALLED UP BY THE CALGARY FLAMES AFTER 10 GAMES WITH TEAM USA HE'S EXPECTED TO REJOIN THE TEAM NEXT MONTH BUT HE'LL HAVE MISSED THE BULK OF ITS PREOLYMPIC SCHEDULE GARTH SNOW WAS THE TEAM'S NO 2 GOALIE UNTIL HIS LASTWEEK CALL UP BY THE QUEBEC NORDIQUES TAYLOR SAYS HE DOESN'T KNOW WHEN OR IF HE'LL RETURN SAME FOR FORWARD JIM STORM NOW WITH THE HARTFORD WHALERS AFTER 24 GAMES WITH THE OLYMPIANS NO 1 GOALIE MIKE DUNHAM AND FORWARD BRIAN ROLSTON ARE THE PROPERTY OF THE NEW JERSEY DEVILS AND COULD BE SUMMONED BY THEM AT ANY TIME MEANTIME OF COURSE LIFE GOES ON AND NOT TOO BADLY FOR THE TEAM PARTLY BECAUSE OF THE VICIOUS CIRCLE FORCED UPON ALL RECENTYEAR US OLYMPIC SQUADS THEY NEED TO PLAY A LOT OF GAMES TO GET BETTER AND HAVE TO RAISE THE MONEY TO DO SO THEMSELVES THIS YEAR'S TEAM EMBARKED ON A 60GAME EXHIBITION CAMPAIGN THAT CAN ONLY BE CALLED GRUELING IT INCLUDES TWO TRIPS TO EUROPE SO FAR AND ONE TO RUSSIA BEFORE THE TEAM HEADS TO LILLEHAMMER ON JAN 31 THAT IT HAS PROSPERED AS WELL AS SURVIVED IS ATTESTED BY THESE MARKS 511 AGAINST THE WELLREGARDED CANADIAN OLYMPIC TEAM 311 AGAINST THE NHL AND 43 AGAINST THE VARIOUS UNITS THAT WILL COMBINE TO TRY TO EXTEND THE RUSSIAUSSR OLYMPIC RECORD TO NINE GOLD MEDALS IN THE PAST 11 OGAMES DEFENSEMAN PETER LAVIOLETTE WHO AT AGE 29 IS BY FAR THE OLDEST MEMBER OF A TEAM WHOSE AVERAGE AGE IS 22 WENT THROUGH THIS GRIND BEFORE IN 1988 HE THINKS THIS BUNCH SHOULD BETTER THAT ONE'S SEVENTHPLACE FINISH AT CALGARY AND MAYBE THE 1992 TEAM'S SURPRISE FOURTH PLACE AT ALBERTVILLE BUT HE CONFESSES TO SOME UNEASE THE CRUCIAL PRACTICE TIME FOR US WILL START AFTER CHRISTMAS HE SAYS IT'D BE TOO BAD IF WE DON'T KNOW BY THEN WHO WE'LL HAVE WITH US ALL THE WAY 9312100021 931210 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT CORP FOURTHQUARTER EARNINGS EXPECTED TO MATCH FORECASTS BLOCKBUSTER ENTERTAINMENT CORP IS COMFORTABLE WITH ANALYSTS EARNINGS PROJECTIONS OF 32 CENTS A SHARE FOR THE FOURTH QUARTER ENDING DEC 31 ACCORDING TO GREGORY K FAIRBANKS BLOCKBUSTER'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE VIDEORENTAL COMPANY AND MUSIC RETAILER IN FORT LAUDERDALE FLA REPORTED NET INCOME OF 45 MILLION OR 23 CENTS A SHARE ON REVENUE OF 398 MILLION IN THE FOURTH QUARTER OF 1992 MR FAIRBANKS ALSO SAID IN AN INTERVIEW THAT HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT BLOCKBUSTER WILL EARN BETWEEN 106 AND 110 A SHARE FOR THE FULL YEAR THE COMPANY EARNED 142 MILLION OR 77 CENTS A SHARE ON SALES OF 12 BILLION IN 1992 MR FAIRBANKS SAID BLOCKBUSTER'S CASH FLOW REMAINS STRONG AND IT WILL CONTINUE TO LOOK AT ACQUISITION OPPORTUNITIES IN THE MEDIA AND ENTERTAINMENT AREA 9312100020 931210 DR PEPPER TO REGAIN FULL 7UP DISTRIBUTION IN METRO NEW YORK DALLAS FOR THE FIRST TIME IN MORE THAN TWO YEARS 7UPBRAND SOFT DRINKS ARE ABOUT TO REGAIN FULL DISTRIBUTION IN METROPOLITAN NEW YORK DR PEPPER/SEVENUP COS SAID IT SETTLED A DISPUTE WITH THE FEDERAL TRADE COMMISSION OVER THE LICENSING AND DISTRIBUTION OF THE 7UP BRAND IN MANHATTAN THE BRONX AND WESTCHESTER COUNTY SUBJECT TO COURT APPROVAL THE SOFTDRINK CONCERN SAID IT EXPECTS TO ISSUE A LICENSE TO DISTRIBUTE 7UP PRODUCTS FOR THE ENTIRE NEW YORK METROPOLITAN AREA TO PEPSICOLA BOTTLING CO OF NEW YORK WE WILL GO FORWARD IMMEDIATELY SAID JOHN R ALBERS DR PEPPER CHAIRMAN AND CHIEF EXECUTIVE IN A STATEMENT WHILE THE COMPANY COULDN'T PROJECT IMMEDIATELY THE IMPACT ON 7UP SALES A SPOKESMAN NOTED THAT THERE ARE MORE THAN 36 MILLION PEOPLE IN THE COUNTY AND TWO BOROUGHS WHERE 7UP HASN'T BEEN DISTRIBUTED SINCE OCTOBER 1991 BECAUSE OF THE DISPUTE DR PEPPER ORIGINALLY TRIED TO TRANSFER THE LICENSES FOR THE TWO BOROUGHS THE COUNTY AND BROOKLYN TO THE NEW YORK PEPSI BOTTLER IN 1990 AFTER 7UP BOTTLERS THERE SOUGHT BANKRUPTCYLAW PROTECTION AND CLOSED CITING CONCERNS ABOUT DECREASED COMPETITION BETWEEN BOTTLERS THE FTC DENIED THE APPLICATIONS FOR ALL BUT THE BROOKLYN LICENSE THE COMMISSION HAD BEEN APPEALING A SEPT 30 RULING BY A FEDERAL DISTRICT COURT JUDGE IN WASHINGTON THAT EFFECTIVELY RESCINDED THE FTC'S DENIAL DR PEPPER SAID THAT AS PART OF THE SETTLEMENT THE FTC DROPPED THE APPEAL AND ALSO AGREED NOT TO CHALLENGE APPLICATIONS TO TRANSFER 7UP LICENSES IN DULUTH MINN AND BROWARD COUNTY FLA TO PEPSI BOTTLERS THE COMPANY HAS BEEN TRYING TO DROP INDEPENDENT BOTTLERS IN FAVOR OF PEPSI OR COCACOLA BOTTLERS WHICH TEND TO BE STRONGER FINANCIALLY AND TO HAVE BETTER DISTRIBUTION CHANNELS 9312100019 931210 CHANGE IN CHINA BEIJING VICE PREMIER VOWS TO PRESS REFORM OF NATION'S ECONOMY ZHU OUTLINES BANKING SHIFT ASSERTS PROGRAM TO COOL GROWTH IS STILL ON TRACK A MORE CONVERTIBLE YUAN BY KAREN ELLIOTT HOUSE STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA IS DETERMINED TO ADOPT FARREACHING ECONOMIC REFORMS INCLUDING A PARTIALLY CONVERTIBLE CURRENCY EARLY NEXT YEAR TO SPEED ITS TRANSITION TO A MARKET ECONOMY SAYS VICE PREMIER ZHU RONGJI THE NATION'S ECONOMIC CZAR MR ZHU HEAD OF THE CENTRAL BANK SINCE JUNE WON'T DISCLOSE WHEN IN 1994 CHINA WILL ADOPT A MARKET RATE FOR ITS CURRENCY THE YUAN IT'S A COMMERCIAL SECRET HE SAYS WITH A SMILE THEN SWITCHING FROM CHINESE TO ENGLISH HE ADDS BUT I CAN SAY VERY VERY EARLY IN A RARE INTERVIEW THE USUALLY LOWPROFILE MR ZHU ENDED MONTHS OF NEAR INVISIBILITY THAT HAVE FED SPECULATION THAT CHINA HAS ABANDONED HIS FIVEMONTHOLD ECONOMICAUSTERITY PROGRAM LEAVING HIM OUT OF STEP WITH THE COUNTRY'S OTHER TOP LEADERS WHO ARE SAID TO FAVOR FASTER ECONOMIC GROWTH CHINA'S ECONOMY IS EXPECTED TO GROW AT A 13 RATE FOR THE SECOND CONSECUTIVE YEAR PROMPTING CONCERN AT THE WORLD BANK AND ELSEWHERE THAT THE ECONOMY COULD BOOM OUT OF CONTROL THAT COULD FORCE BEIJING TO ABRUPTLY COOL GROWTH AND RISK A REPEAT OF 1989'S TIANANMEN DEMONSTRATIONS WHICH BEGAN AS AN ECONOMIC PROTEST AGAINST BUNGLED GOVERNMENT EFFORTS TO SLOW THE ECONOMY AND RAPIDLY ESCALATED INTO DEMANDS FOR DEMOCRACY MR ZHU INSISTS HIS PROGRAM IS STILL ON TRACK MEASURES IMPOSED THIS SUMMER TO CURB RAMPANT PROPERTY AND STOCK SPECULATION COOL INFLATION AND STABILIZE THE CURRENCY HAVE SUCCEEDED HE SAYS THOUGH THAT DOESN'T MEAN THE ECONOMY IS YET ON A STABLE GROWTH PATH AND HE INSISTS CONTRARY TO WIDESPREAD REPORTS IN RECENT WEEKS CHINA HASN'T ABANDONED THOSE MEASURES IN FAVOR OF LOOSENING THE MONEY SUPPLY AND SPEEDING ECONOMIC GROWTH THIS VIEW IS A MISUNDERSTANDING BECAUSE WE HAVE NOT EASED MONEY SUPPLY ON A BIG SCALE HE SAYS WE ARE STILL MAINTAINING THE MACROCONTROL AND REGULATION MEASURES WHETHER MR ZHU'S REMARKS REPRESENT PREVAILING PARTY POLICY OR SIMPLY HIS PERSONAL PREFERENCE DOUBTLESS WILL BE HOTLY DEBATED BUT AS CHINA'S ECONOMIC CZAR HE MUST BE TAKEN SERIOUSLY WESTERN BUSINESSMEN AND DIPLOMATS DIFFER ON MR ZHU'S STANDING SOME SAY THE PARTY'S RECENT DECISIONS TO DEEPEN ECONOMIC REFORM ARE A VICTORY FOR MR ZHU'S STRATEGY OF CREATING MONETARY AND FISCAL INSTRUMENTS TO CONTROL ECONOMIC GROWTH AND END CHINA'S HISTORY OF BOOMANDBUST ECONOMICS OTHERS INSIST MR ZHU IS SIMPLY BEING SET UP BY PREMIER LI PENG TO TAKE THE FALL IF THE ECONOMY SPINS OUT OF CONTROL WHAT IS CLEAR IS THAT BOTH PREMIER LI AND PARAMOUNT LEADER DENG XIAOPING ARE ON RECORD FAVORING FASTER ECONOMIC GROWTH IN A SPEECH THIS WEEK PREMIER LI IS QUOTED AS SAYING KEEPING THE ECONOMY ON A FAST AND HEALTHY TRACK REMAINS CHINA'S TOP PRIORITY AND MR DENG IS REPORTED IN THE CHINESE PRESS TO HAVE SAID RECENTLY SLOW GROWTH ISN'T SOCIALISM ON THE OTHER HAND PRESIDENT JIANG ZEMIN THIS WEEK PUBLICLY CALLED FOR TIMELY MACROECONOMIC CONTROL IF FAST GROWTH IS THE POLICY AND MANY WESTERN ANALYSTS AND DIPLOMATS FEAR IT IS THEN MR ZHU'S OUTSPOKEN WARNINGS AGAINST IT AND HIS INSISTENCE THAT MACROCONTROLS REMAIN IN EFFECT ARE ALL THE MORE REMARKABLE SO WHILE THERE CLEARLY IS DEBATE AMONG CHINA'S LEADERS OVER THE PACE OF GROWTH ANALYSTS MAY BE EXAGGERATING THE DIFFERENCES REGARDLESS MR ZHU AS ECONOMIC CZAR IS IN THE BEST POSITION TO SHAPE THE FUTURE OF CHINA'S ECONOMIC AND THUS POLITICAL DESTINY WHETHER HE CAN REFORM THE WORLD'S FASTESTGROWING ECONOMY WITHOUT DESTABILIZING WHAT IS ALSO THE WORLD'S MOST POPULOUS NATION HAS PROFOUND ECONOMIC AND POLITICAL CONSEQUENCES FOR THE ENTIRE WORLD BY THE INTERNATIONAL MONETARY FUND'S RECKONING CHINA ALREADY IS THE GLOBE'S THIRDLARGEST ECONOMY ITS POLITICAL AND MILITARY POWER SEEMS SURE TO GROW ALONG WITH ITS ECONOMIC CLOUT WHILE FOREIGN INVESTMENT CONTINUES TO FLOOD INTO CHINA SOME 15 BILLION THIS YEAR ALONE INDICATING AT LEAST SOME CONFIDENCE IN THE COUNTRY'S ECONOMIC DIRECTION SOME ECONOMISTS AND CHINA WATCHERS ARE SKEPTICAL WITH THE 89YEAROLD MR DENG WIDELY BELIEVED TO BE SERIOUSLY ILL THE UNPOPULAR PREMIER LI'S HEALTH UNCERTAIN FOLLOWING AN APPARENT HEART ATTACK IN THE SPRING AND PRESIDENT JIANG CONSIDERED A WEAK TRANSITIONAL FIGURE MR ZHU WHO CLEARLY PREFERS TO TALK ECONOMICS INSTEAD OF POLITICS COULD ONE DAY EMERGE AS LEADER OF CHINA BECAUSE HE LACKS A POLITICAL BASE AND HAS OFFENDED MANY WITH HIS ABRASIVE STYLE HIS FUTURE LEADERSHIP ROLE DEPENDS HEAVILY ON HIS PERFORMANCE MANAGING CHINA'S ECONOMY IF MR ZHU IS WORRIED ABOUT ANYTHING OTHER THAN FIRMLY PLANTING CHINA ON THE ROAD TO SUSTAINED STABLE ECONOMIC GROWTH HE DIDN'T REVEAL IT DURING A TWOHOUR INTERVIEW AT ZHONGNANHAI ONCE PART OF THE IMPERIAL PALACE AND NOW CHINA'S KREMLIN IN SHARP CONTRAST TO THE ORNATE SETTING MR ZHU AN ENGINEER WHO WAS NAMED VICE PREMIER IN 1991 AFTER A STINT AS MAYOR OF SHANGHAI IS A MODEST UNASSUMING BLUNTSPOKEN PRAGMATIST HIS UNPRETENTIOUS MANNER AND FIXATION ON ECONOMIC REFORM ARE REMINISCENT OF MEXICAN PRESIDENT CARLOS SALINAS A HARVARDTRAINED ECONOMIST WHO HAS TRANSFORMED MEXICO'S ECONOMY WITH A STRONG DOSE OF MARKET REFORM MR ZHU LOOKED WEARY AFTER FIVE MONTHS OF HIGHWIRE EFFORTS TO RESCUE CHINA'S OVERHEATED ECONOMY AND TO HAMMER OUT NEW FISCAL REFORMS INCLUDING TAXSHARING ARRANGEMENTS WITH INDEPENDENTMINDED PROVINCIAL LEADERS BUT HE TALKED LIKE A WINNER NOT A LOSER IN ECONOMICPOLICY DEBATES HE ARRIVED FOR THE INTERVIEW WITHOUT STAFF AND SHUNNED FORMAL STATEMENTS HANDLING ECONOMIC QUESTIONS DIRECTLY AND RESPONSIVELY THE VICE PREMIER MADE THE FOLLOWING KEY POINTS RAPID ECONOMIC GROWTH OF THE KIND CHINA EXPERIENCED THIS YEAR AND LAST ISN'T SUSTAINABLE FOR LONG IT IS POSSIBLE TO MAINTAIN A GROWTH RATE OF 13 FOR ONE OR TWO OR EVEN THREE YEARS BUT IT IS IMPOSSIBLE TO MAINTAIN SUCH A HIGH GROWTH RATE FOR A LONGER PERIOD OF TIME HE SAYS THAT IS WHY OUR STRATEGIC OBJECTIVE HAS ALL ALONG BEEN 8 TO 9 MY ASSESSMENT IS THE GNP GROWTH RATE IN 1994 WILL EXCEED THAT BUT I THINK THE GROWTH RATE FOR 1995 WILL RETURN TO OUR STRATEGIC OBJECTIVE AFTER YEARS OF PROMISES CHINA WILL MAKE ITS CURRENCY PARTIALLY CONVERTIBLE EARLY NEXT YEAR IF SO THIS WILL BE WELCOME NEWS TO FOREIGN INVESTORS WHOSE INVESTMENTS IN CHINA ARE UNDERVALUED AND WHOSE LOCAL COSTS ARE INFLATED BY MORE THAN 40 DUE TO A DUAL EXCHANGE RATE WHILE THESE INVESTMENTS AND COSTS MUST BE MADE IN CURRENCY EXCHANGED AT THE OFFICIAL RATE OF 57 YUAN TO THE DOLLAR FOREIGN INVESTORS REMIT PROFITS BY EXCHANGING CURRENCY IN SOCALLED SWAP MARKETS AT ABOUT 85 YUAN TO THE DOLLAR EVEN AFTER THIS REFORM MR ZHU SAYS THE CURRENCY WON'T BE FREELY CONVERTIBLE A FLOATING RATE WOULD BE AVAILABLE ONLY TO THOSE ENGAGED IN FOREIGN TRADE EVEN THOUGH MEASURES IMPOSED THIS SUMMER TO CURB AN OVERHEATED ECONOMY WORKED TO SLOW GROWTH IN INFLATION AND THE MONEY SUPPLY AND STABILIZE CHINA'S CURRENCY THESE IMPROVEMENTS DON'T REPRESENT A FUNDAMENTAL FIX FOR CHINA'S ECONOMIC CYCLES ONLY SWEEPING MONETARY AND FISCAL REFORMS INCLUDING ESTABLISHMENT OF A CENTRAL BANK AND A CONVERTIBLE CURRENCY CAN PUT CHINA'S ECONOMY ON A STABLE GROWTH PATH THE ROOT CAUSE OF THESE PROBLEMS IS THAT THE OLD STRUCTURE HAS NOT YET BEEN COMPLETELY REFORMED HE SAYS A FUNDAMENTAL WAY OUT LIES IN FURTHER PROMOTION OF REFORMS PARTICULARLY REFORMS IN THE FINANCIAL AND FISCAL SECTORS SWEEPING MONETARY AND FISCAL REFORMS ARE IMMINENT IN THE PAST THREE MONTHS WE HAVE BEEN FORMULATING AND NOW WE ARE PREPARED TO INTRODUCE THE MOST UNPRECEDENTED SIGNIFICANT AND PROFOUND ECONOMIC STRUCTURAL REFORM IN THE HISTORY OF CHINA SPECIFICALLY MR ZHU SAYS HE IS DETERMINED TO MAKE THE PEOPLE'S BANK OF CHINA FUNCTION AS A GENUINE CENTRAL BANK BY JAN 1 HE SAYS BEIJING WILL CREATE THREE POLICY BANKS TO SUPPORT AGRICULTURAL INDUSTRIAL AND INFRASTRUCTURE PROJECTS THE GOAL IS FOR ALL OTHER BANKS TO BE COMMERCIAL BANKS GUIDED BY THE MARKET NOT GOVERNMENT EDICT THIS WILL INDEPENDENTLY INTRODUCE A UNIFIED MONETARY POLICY AND DISCARD INTERFERENCE FROM LOCAL GOVERNMENTS HE SAYS IN THE PAST BRANCHES OF THE PEOPLE'S BANK WHICH ARE SUPPOSED TO CARRY OUT GOVERNMENT ECONOMIC PRIORITIES HAVE INSTEAD ENGAGED IN REALESTATE SPECULATION AND OTHER ACTIVITIES AT ODDS WITH GOVERNMENT POLICY AS COMMERCIAL BANKS THEY WOULD DO SO AT THE PERIL OF MARKET CONDITIONS AND WITHOUT GOVERNMENT PROTECTION TO ADDRESS CHINA'S PERSISTENT AND GROWING FISCAL DEFICITS BEIJING NEXT YEAR PLANS TO BEGIN COLLECTING FROM THE PROVINCES HALF OF THEIR INCREASE IN LOCAL TAX REVENUES SECURING AGREEMENT ON THE TAXSHARING ARRANGEMENT CLEARLY WAS ONE OF THE MOST SIGNIFICANT MEASURES TO EMERGE FROM THE THIRD PLENUM OF THE CENTRAL COMMITTEE IN MIDNOVEMBER THE IMPOVERISHED CENTRAL GOVERNMENT HAS TRIED FOR YEARS TO INCREASE ITS SHARE OF PROVINCIAL REVENUES MR ZHU BELIEVES HE HAS SUCCEEDED IN PERSUADING PROVINCIAL LEADERS WE ENJOY AN ADVANTAGE IN THIS REGARD HE SAYS WITH A BIG SMILE WE HAVE THE COMMUNIST PARTY AS A RULING PARTY AND POLITICALLY WE ARE UNIFIED AND THAT IS WHY WE CAN PERSUADE THE PARTY COMMITTEES AND LOCAL GOVERNMENT AT VARIOUS LEVELS TO TAKE INTO CONSIDERATION THE OVERALL INTERESTS SOMETIMES AT THE EXPENSE OF THEIR LOCAL INTERESTS ACTUALLY MR ZHU SPENT MOST OF THE PAST TWO MONTHS NEGOTIATING WITH PROVINCIAL LEADERS I'VE VISITED HALF OF CHINA'S 30 PROVINCES TO DO SOME PERSUASION WORK HE SAYS WITH A WRY SMILE I'VE LOST 25 KILOS BUT I NEVER FAILED I PULLED THE MONEY FROM THEIR POCKETS BUT WE HAVE MAINTAINED OUR FRIENDSHIP SOME DOUBT THAT ANALYSTS AND NEWSPAPER REPORTS SUGGEST MR ZHU MAY HAVE WON A PYRRHIC VICTORY HE GOT AGREEMENT BUT AT THE PRICE OF CREATING GREAT ENMITY BUT MR ZHU SEEMS NOT TO MIND RUFFLING FEATHERS TO GET WHAT HE INSISTS IS NECESSARY FOR CHINA'S LONGTERM ECONOMIC HEALTH ASKED IF REPORTS THAT HE PERSUADED PROVINCES BY OFFERING A ONEYEAR MORATORIUM ON PASSING ALONG MORE TAXES ARE TRUE HE SAYS INDEED I DO NOT AFFECT THEIR IMMEDIATE INTEREST ALL I GET IS HALF OF THE INCREASE IN TAX REVENUE NEXT YEAR BUT THAT AMOUNT IS SCHEDULED TO RISE STEADILY OVER THE NEXT THREE YEARS UNTIL THE PROVINCES WHICH NOW KEEP 70 OF TAX REVENUE SHARE ENOUGH TO RAISE THE CENTRAL GOVERNMENT'S SHARE TO 50 HOW CERTAIN IS HE THAT PROVINCES WILL REPORT INCREASED TAX REVENUE IF I SOLELY RELIED ON THEM I WOULDN'T GET A PENNY HE SAYS BUT I RELY ON THE OFFICES OF THE TAX BUREAU OF THE CENTRAL GOVERNMENT NOT ON LOCAL TAX COLLECTORS TAXES IN CHINA USUALLY ARE COLLECTED BY LOCAL OFFICIALS SO HIS DECISION TO DISPATCH CENTRALGOVERNMENT TAX COLLECTORS IS INDICATIVE OF MR ZHU'S NONONSENSE STYLE WHICH OTHERS SOMETIMES FIND ABRASIVE MR ZHU WHO HAS OFFERED TO RESIGN IF HIS FINANCIAL REFORMS DON'T WORK EXPRESSES CONFIDENCE THEY WILL WE HAVE ALREADY ACCUMULATED THE EXPERIENCE OF MARKET REFORM SINCE 1979 WE ARE NOT LIKE THE FORMER SOVIET UNION WHICH TRIED TO JUMP FROM THE PLANNED ECONOMY TO THE MARKET ECONOMY INDEED OVER THE PAST DECADE CHINA HAS GRADUALLY ADOPTED MORE AND MORE MARKET MEASURES CREATING STOCK MARKETS FREEING PRICES AND PRIVATIZING SOME STATE ENTERPRISES IF CHINA NOW SUCCEEDS AT FINANCIAL REFORMS INCLUDING A TAX STRUCTURE SET BY LAW RATHER THAN BY ANNUAL NEGOTIATIONS BETWEEN OFFICIALS AND ENTERPRISES IT WILL HAVE TAKEN ANOTHER GREAT LEAP TOWARD A MARKET ECONOMY SOMETHING WESTERN BUSINESSMEN STRONGLY FAVOR WITH FINANCIAL REFORMS MR ZHU BELIEVES CHINA CAN ACHIEVE THE STABLE 8 TO 9 GROWTH HE SAYS IS OPTIMAL OF COURSE BY ANY INTERNATIONAL STANDARDS GROWTH OF 8 TO 9 IS RAPID BUT IN CHINA IT'S CONSIDERED SLOW INDEED MR ZHU IS SEEKING TO REDEFINE RAPID GROWTH ALL ALONG WE STOOD FOR A HIGH ECONOMICGROWTH RATE BECAUSE THIS IS THE NEED OF THE DEVELOPMENT OF CHINA BUT THE POINT IS WHAT CAN BE REGARDED AS A HIGH GROWTH RATE BETWEEN 1979 AND 1991 THE AVERAGE ANNUAL GROWTH WAS 7 TO 8 THIS IS A HIGH GROWTH RATE HE SAYS SIMILARLY HE SEEKS TO PUT CHINA'S INFLATION IN AN INTERNATIONAL PERSPECTIVE INFLATION IN MAJOR CHINESE CITIES HIT AN ANNUAL RATE OF 21 IN OCTOBER BUT MR ZHU INSISTED NATIONWIDE INFLATION IS 12 DOUBLE THE 1992 RATE AND TRIPLE THAT IN 1991 FOR US A 12 INFLATION RATE IS ALREADY QUITE HIGH BUT GLOBALLY THIS IS NOT HIGH THIS IS NOTHING AS COMPARED TO THE INFLATION RATE OF BRAZIL INFLATION IN BRAZIL IS CURRENTLY RUNNING AT ABOUT 2600 ANNUALLY REGARDLESS HE SAYS CHINA'S GOAL IS TO GET INFLATION TO SINGLE DIGITS NEXT YEAR OR AT WORST 10 NATIONWIDE AND 15 IN THE CITIES THE VICE PREMIER FLATLY REJECTS SUGGESTIONS THAT CHINA'S LEADERSHIP IS GRIDLOCKED BY THE POSSIBILITY OF MR DENG'S DEATH THIS GOVERNMENT IS FULLY CAPABLE OF RESOLVING ALL QUESTIONS HE SAYS HE CITES LARGE INFUSIONS OF FOREIGN INVESTMENT AS EVIDENCE THAT INVESTORS HAVE FAITH IN THE LEADERSHIP FURTHER EVIDENCE HE SAYS IS THAT THE LEADERSHIP IS UNITED BEHIND THE PARTY PLENUM'S SWEEPING REFORMS THAT CALL FOR SPEEDING ESTABLISHMENT OF A SOCIALIST MARKET STRUCTURE FINALLY HE POINTS TO A SHARP RISE IN THE HONG KONG STOCK MARKET MONDAY A FEW DAYS AFTER BRITAIN AND CHINA RAN INTO A DEADLOCK IN TALKS OVER BRITISH PLANS TO MAKE HONG KONG ELECTIONS MORE DEMOCRATIC IN THE PAST SINOBRITISH TENSIONS USUALLY SENT THE STOCK MARKET DOWN HE SAYS ARGUING THAT THE MARKET'S RISE THIS TIME REPRESENTS A VOTE OF CONFIDENCE IN BEIJING'S LEADERSHIP HE SOUGHT TO STEER CLEAR OF POLITICS DECLINING TO DISCUSS WHAT ADVICE HE WOULD GIVE PRESIDENT CLINTON TO IMPROVE USCHINA RELATIONS INSTEAD HE REFOCUSED ON US BUSINESS WHAT DESERVES OUR SPECIAL ATTENTION IS THAT MANY BIG AMERICAN COMPANIES HAVE COME TO INVEST IN CHINA INCLUDING AT&T AND THE BIG THREE AUTO COMPANIES HE SAYS HE REITERATED THE CHINESE POSITION THAT THE US UNFAIRLY EXAGGERATES ITS TRADE DEFICIT WITH CHINA BY COUNTING AS CHINESE EXPORTS SOME 23 BILLION WORTH OF GOODS THAT GO FROM CHINA TO TAIWAN OR HONG KONG BEFORE BEING REEXPORTED TO THE US TO ILLUSTRATE HIS POINT MR ZHU SAYS THAT CHINA EARNS ONLY 2 PER PAIR ON SHOES ASSEMBLED IN CHINA AND SOLD IN THE US FOR 100 THE BULK OF THE MONEY GOES TO AMERICANS MR ZHU SAYS WHO TYPICALLY BUY THE SHOES FROM A TAIWANESE MIDDLEMAN FOR 20 IF THE US REVOKES MOSTFAVOREDNATION TRADING STATUS HE SAYS IT'S THE US THAT WILL GET HURT CHINA HE INSISTS IS GETTING ONLY ABOUT 2 BILLION FROM WHAT THE US CONSIDERS A 23 BILLION CHINESE TRADE SURPLUS IT'S NOT A BIG DEAL I CAN GET THE COMPENSATION FOR THIS 1 OR 2 BILLION FROM MARKETS IN EUROPE OR JAPAN 9312100018 931210 AARON RENTS INC SEES ITS 3RDQUARTER NET MATCHING ESTIMATES ATLANTA AARON RENTS INC IS QUITE COMFORTABLE WITH ANALYSTS' EARNINGS PROJECTIONS OF 23 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDING DEC 31 CHARLES R LOUDERMILK SR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WHICH MANUFACTURES RENTS AND SELLS RESIDENTIAL AND OFFICE FURNITURE EARNED 16 MILLION OR 19 CENTS A SHARE ON REVENUE OF 38 MILLION IN THE COMPARABLE 1992 QUARTER MR LOUDERMILK ALSO SAID IN AN INTERVIEW THAT HE IS EQUALLY COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL EARN 95 CENTS A SHARE FOR THE FULL FISCAL YEAR ENDING MARCH 31 1994 AARON RENTS EARNED 70 CENTS A SHARE IN FISCAL 1993 MR LOUDERMILK SAID THERE IS NO QUESTION THAT FISCAL 1994 WILL REPRESENT A RECORD YEAR FOR EARNINGS AND REVENUE MR LOUDERMILK SAID THE COMPANY'S AGGRESSIVE GROWTH IN THE RENTTOOWN MARKET IS ACCOUNTING FOR MOST OF THE IMPROVED RESULTS FOR MOST OF THE COMPANY'S 37 YEARS IT FOCUSED ON THE RENTAL MARKET BUT IN THE PAST THREE TO FOUR YEARS MR LOUDERMILK SAID WE REALIZED THERE WAS A HUGE MARKET OF PEOPLE WHO NEEDED TO ACQUIRE HOME FURNISHINGS ELECTRONICS AND APPLIANCES THE TYPICAL CUSTOMER HAS TROUBLE OBTAINING CASH OR CREDIT TO BUY FROM TRADITIONAL SOURCES HE SAID THE COMPANY IS NOW OPENING THREE NEW STORES A MONTH AND VIRTUALLY ALL ARE RENTTOPURCHASE STORES MR LOUDERMILK SAID SOON AARON RENTS WILL STEP UP THAT SCHEDULE TO ONE NEW STORE A WEEK AND THAT RATE WILL BE INCREASED AGAIN JUST AS FAST AS OUR MANAGEMENT HAS THE CAPABILITY TO OPEN NEW STORES MR LOUDERMILK SAID THE COMPANY IS BRINGING MOST OF ITS NEW STORES TO CITIES WHERE IT ALREADY HAS A PRESENCE HE ADDED IN ADDITION MR LOUDERMILK SAID THE COMPANY WILL OPEN MORE 15000SQUAREFOOT SUPERSTORES IT OPENED THE FIRST IN INDIANAPOLIS IN AUGUST OPENED ANOTHER IN NORFOLK VA LAST MONTH AND PLANS TO OPEN A SUPERSTORE IN ORLANDO FLA AFTER THE FIRST OF THE YEAR 9312100017 931210 POLITICS & POLICY CENTRIST REED AND LIBERAL SPERLING REPRESENT THE CONTRADICTORY BLEND OF CLINTON'S IDEOLOGY BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON MOST TOPICS PRESIDENT CLINTON IS OF TWO MINDS ONE MIND BELONGS TO BRUCE REED THE OTHER TO GENE SPERLING TAKE THE CURRENT DEBATE OVER THE PENDING ANTICRIME BILL MR REED IS THE ADMINISTRATION'S BIGGEST BACKER OF THE 22 BILLION LEGISLATION THAT PASSED THE SENATE MR SPERLING IS HIGHLY SKEPTICAL OF CERTAIN PARTS I'M NOT SURE I'D SPEND MONEY ON PRISON CONSTRUCTION BEFORE POOR CHILDREN HE SAYS THE DISAGREEMENT IS COMMONPLACE MR REED IS A POLITICAL MODERATE ON THE STAFF OF THE PRESIDENT'S DOMESTIC POLICY COUNCIL MR SPERLING IS A LIBERAL ON THE STAFF OF THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL TOGETHER THEY ARE THE ODD COUPLE OF THE WHITE HOUSE TWO FRIENDS WHO REPRESENT THE BLEND SOME SAY CONTRADICTION THAT IS THE PRESIDENT'S IDEOLOGY MR CLINTON HAS MADE A CAREER OF PRESENTING HIMSELF AS ALL THINGS TO ALL PEOPLE TO LIBERALS HE'S A CRUSADER FOR HIGHER TAXES ON THE RICH AND FOR INCREASED INVESTMENT IN SOCIAL PROGRAMS TO MODERATES HE'S A NEW DEMOCRAT WHO WANTS TO PUT MORE COPS ON THE STREET AND PUT WELFARE RECIPIENTS TO WORK IN ESSENCE MR CLINTON IS A WHATEVERWORKS KIND OF PRESIDENT MOVING BLITHELY FROM ONE END OF THE DEMOCRATIC PARTY'S SPECTRUM TO THE OTHER ALTHOUGH HE'S ALMOST INVARIABLY INCLINED AT FIRST TOWARD THE LIBERALISM OF MR SPERLING HE'S WILLING TO MOVE RIGHT TOWARD MR REED'S MODERATE STANCE WHENEVER HE SENSES THE POLITICAL NEED THAT SHIFT FROM LIBERALISM TOWARD THE POLITICAL CENTER IS ONE WAY TO INTERPRET THE COURSE OF MR CLINTON'S FIRST YEAR IN OFFICE INDEED WITH THE PUBLIC STILL SKEPTICAL OF GOVERNMENT ACTIVISM THE STORY OF THE CLINTON PRESIDENCY IS LIKELY TO BE A CONSTANT LURCHING FROM MR SPERLING TO MR REED WITH THE OCCASIONAL COLLABORATION IN BETWEEN THIS ISN'T AN ARTIFICIAL EXPLANATION THE WHITE HOUSE CONSIDERS MESSRS REED AND SPERLING TO BE THE GUARDIANS OF THE CLINTON IDEOLOGY DESPITE THEIR DISPARATE VIEWS THEY ARE THE PEOPLE TO WHOM OTHERS LOOK WHEN YOU WANT TO KNOW WHETHER A PROPOSAL IS CONSISTENT WITH THE THEMES AND IDEAS THAT GOT US HERE SAYS DAVID DREYER A SENIOR SPOKESMAN FOR THE PRESIDENT THE NOTION THAT TWO SO DIFFERENT AIDES CAN OVERSEE A SINGLE PHILOSOPHY IS EVIDENCE THAT CLINTONISM IS INHERENTLY AT ODDS WITH ITSELF AND A GOOD WAY TO GRASP THE STRUGGLE IS TO WATCH MESSRS SPERLING AND REED THEIR SPARRING OVER THE CRIME BILL IS A GOOD EXAMPLE MR REED HAS BEEN THE WHITE HOUSE'S PAUL REVERE ON STRESSING ANTICRIME MEASURES IN THE FACE OF RISING PUBLIC CONCERN ABOUT VIOLENCE MR SPERLING WHILE STRONGLY FAVORING MORE COPS ON THE STREET HAS BEEN PART OF THE WHITE HOUSE'S LIBERAL FACTION THAT HAS RESISTED SPENDING GREAT AMOUNTS OF MONEY ON THE CRIME BILL THESE AIDES FEAR THAT RESOURCES DEVOTED TO COMBATING CRIME WOULD DIMINISH THE AMOUNT AVAILABLE FOR SOCIALSERVICE PROGRAMS SUCH AS HEADSTART AND JOBRETRAINING FLUSH WITH HIS SUCCESS IN THE SENATE ON THE CRIME BILL MR REED RAN INTO MR SPERLING IN THE WHITE HOUSE RECENTLY MR SPERLING GAMELY CONGRATULATED HIM BUT IN A BACKHANDED WAY YOU DON'T EVEN COME TO BUDGET MEETINGS FOR 10 MONTHS HE SAID AND END UP WITH 22 BILLION THE REEDSPERLING CONFLICT TOOK ON LARGER PROPORTIONS EARLIER IN THE YEAR PRESIDENT CLINTON SIDED WITH MR SPERLING AND HIS ASSOCIATES WHEN HE PRESSED AHEAD WITH HIS SOCALLED STIMULUS PACKAGE OF GOVERNMENT INVESTMENTS WITHOUT FIRST PASSING BUDGET CUTS TO PAY FOR THEM HE DID THIS DESPITE WARNINGS FROM MR REED'S WING THAT HE SHOULDN'T TRY TO SPEND MONEY UNTIL HE IMPOSED SOME DISCIPLINE ON GOVERNMENT PROGRAMS ULTIMATELY THE MULTIBILLIONDOLLAR PACKAGE WAS LABELED PORK BARREL AND WAS KILLED IN THE SENATE MR CLINTON'S NEXT MOVE WAS IN THE DIRECTION OF THE MODERATES IN THE WAKE OF THE INVESTMENTPROGRAM DEBACLE HE PUSHED FOR SERIOUS DEFICIT REDUCTION A POSITION MORE IN LINE WITH MR REED THE BUDGET BILL'S EVENTUAL THOUGH NARROW SUCCESS TURNED AROUND THE FORTUNES OF AN ADMINISTRATION THAT WAS FOUNDERING SIMILAR CONFLICTS ARE PLAYED OUT TIME AFTER TIME WITH EACH CLINTON AIDE EXPRESSING HIS OWN VIEW WITH PASSION AND SINCERITY HE LOOKS FOR THINGS THAT GOVERNMENT CAN DO MR REED SAYS OF MR SPERLING I LOOK FOR THINGS THAT GOVERNMENT OUGHT TO STOP DOING BRUCE WOULD LIKE TO TAKE DOWN GOVERNMENT MORE MR SPERLING AGREES I WOULD LIKE TO FIND MORE MONEY TO IMPROVE INVESTMENT IN FAMILIES AND CHILDREN THEY COME BY THEIR OPINIONS NATURALLY MR REED WHO HAILS FROM CONSERVATIVE IDAHO HAS WORKED EXTENSIVELY FOR SOUTHERN MODERATES INCLUDING A STINT AS A SPEECHWRITER FOR VICE PRESIDENT AL GORE WHEN HE WAS A SENATOR HE ALSO WAS POLICY DIRECTOR OF THE MODERATE ARM OF THE DEMOCRATIC PARTY THE DEMOCRATIC LEADERSHIP COUNCIL MR SPERLING WAS RAISED IN THE LABOR STATE OF MICHIGAN AND HAS WORKED FOR TWO OF THE DEMOCRATIC PARTY'S MOST CELEBRATED LIBERAL GOVERNORS FROM THE NORTHEAST MICHAEL DUKAKIS OF MASSACHUSETTS AND MARIO CUOMO OF NEW YORK MR REED AND MR SPERLING ARE JUST AS DIFFERENT IN STYLE AS THEY ARE IN SUBSTANCE THE LANKY MR REED IS A HIGHLY ORGANIZED SHARPLY ATTIRED 33YEAROLD WHO LOOKS MUCH YOUNGER AND LIKES FEW THINGS BETTER THAN GOING HOME TO PLAY WITH HIS INFANT DAUGHTER JULIA BY CONTRAST MR SPERLING 34 IS SQUAT A LITTLE RUMPLED AND UNMARRIED HE WORKS AMID A CONSTANT CLUTTER AND HAS THE PALE DRAWN LOOK OF A PERSON WHO PUTS IN 18 HOURS A DAY BUT DESPITE THEIR DIFFERENCES THEY DON'T ALWAYS DISAGREE IN FACT IN MANY WAYS THEIR JOB IS TO TRY TO FIND COMMON GROUND WHEN THEY CAN WHILE THEY BOTH LOOK OUT FOR THEIR OWN POINTS OF VIEW THEY ALSO LOOK OUT FOR THEIR BOSS AND WHEN THEY DO COME TOGETHER THEY FORM WHAT SENIOR WHITE HOUSE AIDE GEORGE STEPHANOPOULOS CALLS THE SYNTHESIS THAT BILL CLINTON HAS BROUGHT TO THE DEMOCRATIC PARTY TO DO THIS THEY EACH SERVE AS EMISSARIES FOR MR CLINTON TO THEIR OWN WINGS OF THEIR PARTY MR SPERLING FOR INSTANCE FIELDS CALLS FROM SUCH LEFTIST ACTIVISTS AS MARION WRIGHT EDELMAN OF THE CHILDREN'S DEFENSE FUND AND ROBERT GREENSTEIN OF THE CENTER FOR BUDGET PRIORITIES MR REED DEALS A LOT WITH MIDDLEOFTHEROADERS SUCH AS AL FROM OF THE DEMOCRATIC LEADERSHIP COUNCIL AND OKLAHOMA REP DAVE MCCURDY WE KNOW SPERLING SAYS JEFF FAUX OF THE ECONOMIC POLICY INSTITUTE A LIBERAL THINK TANK BRUCE REED WE DON'T KNOW HIM VERY WELL BUT MR FAUX DOESN'T DELUDE HIMSELF INTO BELIEVING THAT MR SPERLING IS MERELY A FELLOW CONSPIRATOR FROM THE LEFT HE'S A GOOD SOLDIER FOR CLINTON MR FAUX SAYS THERE IS MUCH EVIDENCE OF THAT MR SPERLING MANAGED TO REVIVE SOME OF THE FAILED STIMULUS PACKAGE FOR EXAMPLE BY INCLUDING IN A STRIPPEDDOWN PACKAGE MR REED'S PROVISION TO ADD MORE COPS ON THE STREET HE EVEN ADVOCATED MR REED'S POSITION IN A MEETING WITH THE PRESIDENT AFTER MR REED FLASHED HIM SOME OF THE PROVISION'S KEY DETAILS ON HIS BEEPER EVER SINCE THE TWO AIDES REFER TO THE EXTRA POLICE OFFICERS AS BEEPER COPS MR SPERLING ALSO EVENTUALLY BECAME ONE OF THE WHITE HOUSE'S MOST VIGOROUS PROPONENTS OF CUTTING THE BUDGET DEFICIT THANKS IN PART TO MR REED'S PRODDING HE CAME TO REALIZE THAT CONGRESS HAD BECOME MORE CONSERVATIVE FISCALLY AND HIS LIBERAL CREDENTIALS HELPED HIM MAKE THE CASE FOR DEEP CUTS EVEN AS HE CONTINUED TO FIGHT FOR INVESTMENTS WHICH HE HELPED FIT INTO THE FINAL BILL INCLUDING BIG INCREASES FOR HEADSTART AND THE EARNED INCOME TAX CREDIT MR SPERLING ALSO SIDED WITH MR REED IN FAVOR OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE TWO AIDES ARE PLAYING A SIMILAR ROLE IN THE DEBATE OVER WELFARE OVERHAUL NATURALLY MR REED IS A MAJOR BOOSTER BUT MR SPERLING ALSO HAS SIGNED ON ADDING HEFT TO THE CONCEPT INSIDE THE CLINTON ADMINISTRATION AT A RECENT MEETING MR REED WAS DELIGHTED TO HEAR MR SPERLING SUPPORT A PLAN THAT WOULD FORCE WELFARE RECIPIENTS TO TAKE PRIVATESECTOR JOBS WHENEVER THEY WERE OFFERED HE ALSO OPPOSED A PROPOSAL SUPPORTED BY OTHER LIBERALS THAT WOULD REQUIRE THE GOVERNMENT TO PICK UP THE TAB FOR DELINQUENT CHILDSUPPORT PAYMENTS WELFARE REFORM ISN'T GOING TO PASS UNLESS IT'S TOUGH AND SENDS A CLEAR MORAL SIGNAL MR SPERLING SAYS I'VE BEEN THROUGH THESE BUDGET BATTLES ENOUGH NOW TO KNOW THAT HE ADDS I'M NOT SURE I WOULD HAVE SAID THE SAME THING A YEAR AGO SO MR REED CONCLUDES IT IS POSSIBLE TO HAVE TWO KEEPERS OF THE CLINTON FLAME IT'S POSSIBLE IT'S NOT DIFFERENT FLAMES HE SUGGESTS IT'S JUST THE SAME FLAME VIEWED FROM DIFFERENT ANGLES 9312100016 931210 BUSINESS BRIEF ASR INVESTMENTS CORP ARIZONA REIT UNVEILS PLANS TO BUY 2450 APARTMENTS ASR INVESTMENTS CORP SAID IT PLANS TO BUY MORE THAN 2400 APARTMENT UNITS IN THE SOUTHWEST FOR ABOUT 62 MILLION THE SELLER WASN'T DISCLOSED THE TUCSON ARIZ REALESTATE INVESTMENT TRUST SAID THE ACQUISITION WOULD BE FINANCED BY 46 MILLION IN NEW MORTAGE LOANS AND EXISTING LOANS 65 MILLION IN SELLER CARRYBACK FINANCING AND 95 MILLION IN CASH ASR EXPECTS TO COMPLETE THE TRANSACTION IN EARLY JANUARY JON A GROVE ASR'S CHAIRMAN AND PRESIDENT CALLED THE PURCHASE OF ABOUT 2450 APARTMENT UNITS IN 17 PROJECTS IN TUCSON ALBUQUERQUE NM AND HOUSTON A VERY SIGNIFICANT STEP TOWARD OUR PREVIOUSLY ANNOUNCED GOAL OF BECOMING A REALESTATE EQUITY REIT 9312100014 931210 WHO'S NEWS CMS ENHANCEMENTS RESHUFFLES IRVINE CALIF IN THE LATEST IN A SERIES OF MANAGEMENT SHIFTS CMS ENHANCEMENTS INC NAMED HAL CLARK 57 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER MR CLARK A FORMER CONSULTANT TO A CMS SUBSIDIARY SUCCEEDS JIM FAROOQUEE WHO WILL REMAIN WITH THE COMPANY THE COMPUTERSTORAGE PRODUCTS CONCERN ALSO NAMED MICHAEL J RUSERT 39 TO THE NEW POSTS OF CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT MR RUSERT HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CMS'S MAIN OPERATING UNIT STEVEN HOLMES 47 WAS NAMED TO THE ADDITIONAL POST OF EXECUTIVE VICE PRESIDENT AND WILL CONTINUE AS CHIEF FINANCIAL OFFICER 9312100013 931210 LETTERS TO THE EDITOR WANTING EQUALITY IN THE WORST WAY IN REGARD TO STEVEN NOVICK'S NOV 24 LETTER SQUEEZE THE RICH CLOSE THE LOOPHOLES MR NOVICK CONCEDES THAT THE RICHEST AMERICANS PAID A LARGER PIECE OF THE FEDERAL INCOME TAX PIE DURING THE '80S BUT ADDS NO ONE ELSE SHARED IN THEIR SUDDEN PROSPERITY ONE REASON HE ACCURATELY NOTES IS THAT GOVERNMENT ADDED TO LOWAND MIDDLEINCOME AMERICANS' SOCIAL SECURITY TAX BURDEN HE SEEMS TO PUSH A CURIOUS REMEDY INSTEAD OF REMOVING THE FOOT OF THE STATE FROM THE LOW AND MIDDLEINCOME EARNERS' THROATS IE ENDING THE PONZI SCHEME CALLED SOCIAL SECURITY HE PRESCRIBES SQUEEZING RICH AMERICANS EVEN MORE IN DEMOCRACY IN AMERICA ALEXIS DE TOCQUEVILLE SUMMED UP THE PSYCHOLOGY THAT IMPELS ECONOMIC STATISTS LIKE MR NOVICK IN THEIR DRIVE TO FORCE EQUALITY THERE IS A MANLY AND LAWFUL PASSION FOR EQUALITY THAT INCITES MEN TO WISH ALL TO BE POWERFUL AND HONORED THIS PASSION TENDS TO ELEVATE THE HUMBLE TO THE RANK OF THE GREAT BUT THERE EXISTS ALSO IN THE HUMAN HEART A DEPRAVED TASTE FOR EQUALITY WHICH IMPELS THE WEAK TO ATTEMPT TO LOWER THE POWERFUL TO THEIR OWN LEVEL AND REDUCES MEN TO PREFER EQUALITY IN SLAVERY TO INEQUALITY WITH FREEDOM ECONOMIC STATISTS LIKE MR NOVICK WANT EQUALITY IN THE WORST WAY IN RESPONSE TO MR NOVICK THE TAX RATE DURING 1945 TO 1973 MAY WELL HAVE BEEN 70 BUT THE TAX ON CAPITAL GAINS WAS ONLY 25 OF THE GAIN DURING MOST OF THAT PERIOD THAT IS 3 LESS THAN TODAY I HAVE NO IDEA WHERE HE GETS THE IDEA OF LOOPHOLES WERE FEW IN THAT INNOCENT ERA IT IS SIMPLY NOT TRUE THERE WERE MANY WAYS TO LIMIT OR AVOID PAYING TAXES THE ONEROUS ALTERNATIVE MINIMUM TAX WAS UNKNOWN THE STATEMENT THAT THE GROWTH IN THE 1980S WAS MUCH SMALLER THAN THE '50S IS INANE THE '50S WAS A UNIQUE PERIOD OF AMERICAN HISTORY THAT SAW A MIGRATION OF PEOPLE TO THE WARM STATES OF FLORIDA ARIZONA AND CALIFORNIA GIGANTIC BUILDING BOOMS TO HOUSE THIS MIGRATION AND THE FULFILLING OF A NATION'S NEEDS IN CARS APPLIANCES AND HOUSING CAUSED BY WORLD WAR II HOW COULD ONE EVER IMAGINE REPLICATING THIS PERIOD OR THESE EVENTS OR THE ECONOMIC GROWTH THAT ACCOMPANIED THIS PERIOD MR NOVICK SHOULD STUDY THE PAST FEW THOUSAND YEARS OF HISTORY AND DISCOVER THAT THE HAPPIEST AND MOST PROSPEROUS PEOPLE WERE THOSE WHOSE TAX RATES AND TARIFFS WERE LOW THOSE PEOPLE GOT TO ENJOY THE FRUITS OF THEIR LABOR 9312100012 931210 FREE AT LAST HOW RAYMOND SMITH CUT THE APRON STRINGS OF SCLEROTIC MA BELL BELL ATLANTIC CHIEF'S PACT TO ACQUIRE TCI CAPS YEARS OF ICONOCLASM DEAD PIGEONS IN THE OFFICE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL RAYMOND W SMITH HAS SPENT THE BETTER PART OF HIS 33 YEARS IN THE PHONE BUSINESS TRYING TO PUSH OLD MA BELL DOWN A STAIRCASE THE FINAL SHOVE IS INTENDED TO COME IN A FEW WEEKS WHEN THE CHAIRMAN OF BELL ATLANTIC CORP IS TO COMPLETE A FINAL AGREEMENT TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC IN A TRANSACTION THAT COULD GO AS HIGH AS 22 BILLION PLUS ABOUT 10 BILLION IN ASSUMED DEBT PEOPLE GASPED AT THE SIZE OF MR SMITH'S PLAN WHEN IT WAS ANNOUNCED SEVEN WEEKS AGO IT SPURRED A FLURRY OF SMALLER PAIRINGS OF CABLE AND PHONE COMPANIES WHICH HAVE BEEN ANNOUNCED ALMOST WEEKLY BUT ONLOOKERS WERE JUST AS SURPRISED AT THE IDEA THAT A BELLCOMPANY EXECUTIVE WAS ENGINEERING ONE OF THE BIGGEST ACQUISITIONS EVER MR SMITH AFTER ALL CUT HIS MANAGEMENT TEETH IN ONE OF THE WORLD'S MOST STAID TAKEITSLOW BUSINESS BUREAUCRACIES THE BELL SYSTEM FOR RAY SMITH THE TCI DEAL IS IN PART DELIVERANCE A FINAL REPUDIATION OF THE POKY CORPORATE CULTURE THAT AT ONCE NURTURED AND ENRAGED HIM FOR THREE DECADES HE BUTTED HEADS FREQUENTLY AS HE ROSE UP THE CHAIN OF THE OLD AMERICAN TELEPHONE & TELEGRAPH CO ALWAYS HE WAS READY TO USE WHATEVER MEANS WERE NECESSARY TO GET A JOB DONE GOING OVER THE HEADS OF SUPERIORS PULLING ENDRUNS AROUND PEERS SUMMARILY FIRING SUBORDINATES HE WORKS IN A HURRY AND EMPLOYEES FEAR HIS IMPATIENCE A PLAY HE WROTE IN HIS SCANT SPARE TIME CALLED THE FETAL PIG EXPLORES HIS OWN RECURRING CAREER NIGHTMARE IT FOLLOWS FOUR FRIENDS WHO REACH AGE 50 AND HAVEN'T ACCOMPLISHED ANYTHING NOW 56 HIMSELF MR SMITH IS TAKING ON THE BIGGEST CHALLENGE OF HIS CAREER PUSHING THE TCI DEAL THROUGH FOR FINAL APPROVAL MAKING IT WORK AND PROVING IT TO BE WORTH ALL THAT MONEY LAST WEEK MR SMITH ANNOUNCED THE EARLIEST AND MOST AGGRESSIVE PLAN YET FOR BUILDING A STRETCH OF INFORMATION HIGHWAY LAUNCHING A FIVEYEAR 15 BILLION EFFORT HE WANTS TO WIRE UP 250000 HOMES FOR INTERACTIVE SERVICES NEXT YEAR ADD A MILLION MORE HOMES IN 1995 AND LINK UP A FURTHER 15 MILLION IN 1996 HE FIGURES BELL ATLANTIC CAN DELIVER INTERACTIVE SERVICES TO ALMOST NINE MILLION HOUSEHOLDS BY THE END OF THE DECADE MR SMITH'S AMBITIONS HE SAYS GO BEYOND BUSINESS SENSE HIS INTERACTIVE REVOLUTION WOULD DELIVER ALL KINDS OF CULTURE AND EDUCATION TO PEOPLE WHO OTHERWISE WOULDN'T HAVE ACCESS HE CLAIMS NEVER MIND HIS PLANS FOR SUCH TRIFLES AS MOVIESONDEMAND GO INTO A HIGH SCHOOL TODAY AND YOU HAVE DEAD EYES IN FRONT OF YOU HE SAYS IT KILLS ME THAT A KID CAN'T GO HOME AND USE THESE INTERACTIVE SERVICES NOW HE VOWS TO MAKE EVERY KIND OF SOFTWARE AVAILABLE TO EVERYBODY OVER THE BELL ATLANTIC NETWORK IT WILL BE THE LARGEST CHANGE IN CIVILIZATION SINCE PRINTING IT IS HARD TO TELL WHETHER SUCH DECLARATIONS ARE SINCERE OR ARE SHREWDLY COINED FOR THE MOMENT WHEN MR SMITH GOES TO WASHINGTON TO PERSUADE REGULATORS TO BACK THE TCI DEAL THE JUSTICE DEPARTMENT IS RAISING NEW CONCERNS ABOUT ANTICOMPETITIVE ASPECTS AND MAY ASK THAT THE DEAL BE RESTRUCTURED AND SOME ASSETS SOLD PEOPLE WHO HAVE KNOWN MR SMITH FOR YEARS HOWEVER THINK HE MEANS WHAT HE SAYS THOMAS BOLGER A BELL ATLANTIC DIRECTOR AND FORMER CHAIRMAN WHO PROMOTED MR SMITH SEVERAL TIMES AND INTO HIS CURRENT JOB SAYS RAY'S GOALS COME FROM HIS INSIDES RAYMOND SMITH GREW UP IN PITTSBURGH IN THE 1940S THE ONLY CHILD OF A POOR FAMILY NEITHER HIS MOTHER NOR HIS FATHER EVER FINISHED SCHOOL HIS FATHER RAY SR WAS PLUCKED OUT OF SCHOOL BY HIS OWN DAD JOE TO START WORKING WITH HIM IN THE JONES & LOUGHLIN STEEL MILL THE YOUNGER SMITH IS WRITING A FAMILY HISTORY FOR HIS GRANDDAUGHTER AND IN IT HE HAS RECONSTRUCTED HIS FATHER'S ABRUPT ENTRY INTO THE WORKPLACE HE READS IT ALOUD TO A VISITOR ON A RECENT FLIGHT ON THE COMPANY JET THEY WALKED TO THE J&L STEEL GATE AND JOE HANDED YOUNG RAYMOND OVER TO THE TURN FOREMAN JOE PATTED HIM ON THE BACK AND GAVE HIM A NICKEL DO I WORK HERE NOW PAP' RAYMOND KNEW THAT THE NICKEL WAS FOR CARFARE MR SMITH LOOKS UP FROM THE COMPUTER SCREEN AND ADDS THAT WAS MAY 26 1923 IT WAS MY FATHER'S 13TH BIRTHDAY HE HAS WRITTEN A PASSAGE ON HIS MOTHER TOO BUT HE WON'T READ IT ALOUD IT'S TOO POIGNANT HE SAYS ON HER 13TH BIRTHDAY SHE TOO WAS TOLD SHE WOULD HAVE TO WORK JOINING THE FAMILY BAKERY INSTEAD OF GOING TO HIGH SCHOOL SHE NEVER GOT OVER THAT MR SMITH SAYS IN HIS FLAT WESTERN PENNSYLVANIA ACCENT SHE WAS DETERMINED THAT I WOULD NEVER BE WORKING AS A LABORER IN THE MILL THAT DETERMINATION SEEMS TO HAVE PASSED TO HER SON AND NEVER DIMMED DAD WORKED HIS BUTT OFF RECALLS HIS GROWN DAUGHTER KATHY FRORER HE ALWAYS EXPRESSED A FRENETIC DESIRE THAT WE NOT GO THROUGH WHAT HE WENT THROUGH HE REINFORCED HIS WORK ETHIC BY HAVING HIS FOUR CHILDREN TOIL FULLTIME ON HOMEREPAIR PROJECTS AT LEAST TWO FULL WEEKS EVERY YEAR AT MINIMUM WAGE AND WITH A HALFHOUR LUNCH BREAK MS FRORER SAYS MR SMITH AND HIS FORMER WIFE ANN DIVORCED IN 1988 AFTER 26 YEARS OF MARRIAGE AS A YOUNG MAN RAY WAS DRIVEN BUT TRIED NOT TO SHOW IT I HID MY ENTHUSIASM FOR LEARNING HE SAYS I WAS STREETSMART AND PLAYED IT COOL BUT IN THE CLASSROOM HE OVERCAME READING PROBLEMS CAUSED BY DYSLEXIA IN CHURCH HE TIMED HIMSELF TO SEE HOW FAST HE COULD RUSH THROUGH THE HAIL MARY AND OUR FATHER HE WORKED ODD JOBS TO PUT HIMSELF THROUGH COLLEGE AT CARNEGIE MELLON GETTING A'S AND B'S EARNING AN ENGINEERING DEGREE HE LATER STUDIED LITERATURE AT DUQUESNE UNIVERSITY IN 1961 HE GRADUATED AND JOINED BELL OF PENNSYLVANIA EARNING HIS MBA IN 10 YEARS OF NIGHT CLASSES AT THE UNIVERSITY OF PITTSBURGH FROM THE START MR SMITH EARNED A REPUTATION AS AN ICONOCLAST DETERMINED TO RISE AS HIGH AS HE COULD AT AT&T HE ANGERED ONE OF HIS FIRST BOSSES BY IGNORING HIS PRESENTATION AT A MANAGEMENT MEETING AND PASSING NOTES TO A PAL THE BOSS ROBERT BACHER CONFRONTED THE YOUNG RECRUIT AND GRABBED A NOTE OUT OF HIS HANDS ONLY TO FIND THAT MR SMITH HAD WRITTEN IT IN LATIN HE'S A VERY UNUSUAL GUY SAYS MR BACHER WHO WOULD BECOME ONE OF MR SMITH'S MENTORS THE BELL BRASS PEGGED MR SMITH AS A COMER ENROLLING HIM AT ONCE IN AT&T'S INTERDEPARTMENTAL MANAGEMENT DEVELOPMENT PROGRAM GEORGE FREAS HIS FIRST BOSS RECALLS AN ENERGETIC BESPECTACLED 24YEAROLD WHO BUILT TEAM SPIRIT BY ORGANIZING OUTINGS TO PIRATES STADIUM ON ONE SUCH BASEBALL TRIP MR FREAS DISCOVERED TO HIS HORROR THAT THE 20 TICKETS HE HAD WERE FOR THE PREVIOUS DAY'S GAME HE HAD MESSED UP THE DATES THE YOUNG SMITH DESCENDED UPON THE STADIUM MANAGER'S OFFICE AND PROCEEDED TO SPELLBIND THE GUY MR FREAS SAYS IMPLORING THE MANAGER TO SAVE MR FREAS FROM DISGRACE BY HANDING OVER 20 NEW TICKETS FREE OF CHARGE IT WORKED IT WAS AN INCREDIBLE JOB OF SALESMANSHIP MR FREAS SAYS THAT NIGHT IN THE SUMMER OF 1961 MR FREAS TOLD HIS WIFE THAT HE HAD JUST BEEN TO A PIRATES GAME WITH THE FUTURE PRESIDENT OF BELL OF PA HE WAS RIGHT MR SMITH MOVED UP THROUGH VARIOUS ASSIGNMENTS TRAFFIC MANAGER OPERATOR SUPERVISOR PLANT MANAGER AREA MANAGER REGIONAL VICE PRESIDENT OPERATIONS VP BEFORE BECOMING THE LOCAL PHONE COMPANY'S CHIEF FINANCIAL OFFICER AND RISING TO PRESIDENT IN 1983 ON HIS WAY UP HE STRUGGLED AGAINST THE SOMNAMBULISTIC RITES OF BELL LIFE AS A PLANT MANAGER IN THE 1960S HE COULDN'T GET AT&T TO FIX THE POTHOLES IN HIS PARKING LOT WHICH WERE WRECKING THE AXLES ON HIS TRUCKS MR SMITH HIRED A CONTRACTOR TO REPAVE THE ENTIRE LOT THEN HE SENT THE BILL UP THE LINE TO A VICE PRESIDENT HE'D GO AFTER PEOPLE WHO WERE IN ANY WAY HOLDING UP THE COMPANY'S ABILITY TO DELIVER SERVICE HE'D TRY TO GET YOU TRANSFERRED SAYS AN EXECUTIVE WHO WORKED WITH HIM HE'D ABSOLUTELY FIND A WAY TO CRASH THROUGH ONE INCIDENT IN THE LATE 1960S STILL STICKS IN MR SMITH'S CRAW OVERSEEING NEW INSTALLATIONS HE LEARNED THAT THE COMPANY WAS RECORDING ONLY ONEFIFTH OF THE TRUE COST OF INSTALLING MILLIONS OF NEW PHONES HE FOUGHT HARD TO CORRECT THIS AND IMPOSE A NEW ACCOUNTING METHOD HE DUBBED TOTAL PRODUCTIVITY HE WON BUT ONLY BRIEFLY AS SOON AS MR SMITH WAS PROMOTED TO HIS NEXT POST HIS SUCCESSOR SWITCHED BACK TO THE OLD WAY I HAD CONVINCED NOBODY MR SMITH SAYS SCOWLING AT THE RECOLLECTION ALMOST 25 YEARS LATER IT WAS WRONG IT WASN'T WORKING BUT THEY STILL INSISTED ON USING IT BECAUSE IT WAS PART OF THE PROCESS MR SMITH CONTINUED TO TILT AT THE PROCESS IN THE EARLY 1970S WHEN BELL OF PA WOULDN'T ANSWER HIS PLEA TO RENOVATE HIS SHABBY OFFICES MR SMITH MESSED THE PLACE UP EVEN MORE HE SCATTERED DEAD PIGEONS AROUND FOR EXTRA EFFECT AND THEN WENT OVER HIS BOSS'S HEAD TO COMPLAIN TO A REGIONAL VICE PRESIDENT WHO TOOK ONE LOOK AND ORDERED THE PLACE REDONE THAT AT LEAST IS THE STORY AS RECALLED BY JOHN GAMBA WHO WORKED FOR MR SMITH AND IS NOW BELL ATLANTIC'S PRESIDENT OF NETWORKS AND TECHNOLOGIES MR GAMBA SAYS THE REGIONAL VICE PRESIDENT WAS LATER OVERHEARD TELLING SOMEONE THAT HE KNEW MR SMITH HAD SET HIM UP WITH THE PIGEONS AND ADDING I LIKE THAT KID'S STYLE AT ANOTHER POINT IN THE 1970S MR SMITH AS A PLANT MANAGER WROTE A COMPUTER PROGRAM FOR DISPATCHING SERVICE TRUCKS THE FIRST OF ITS KIND IN THE BELL SYSTEM IT WORKED GREAT RECALLS MR BACHER BUT AT&T HEADQUARTERS WAS TOO PROUD TO TAKE IT FROM RAY THEY JUST IGNORED IT WHICH MADE HIM FEEL REAL BAD UNDERSTANDABLY MR SMITH WAS OVERJOYED IN 1982 WHEN THE JUSTICE DEPARTMENT ANNOUNCED THAT AT&T HAD AGREED TO BREAK ITSELF UP AND SPIN OFF THE LOCAL PHONE BUSINESS INTO SEVEN BABY BELLS ON THE DAY OF THE ANNOUNCEMENT HE GATHERED HIS TEAM IN HIS OFFICE AND TOGETHER THEY CHANTED FREE AT LAST A YEAR LATER HE BECAME BELL OF PA'S PRESIDENT HE WAS NAMED CHIEF EXECUTIVE OF ITS PARENT BELL ATLANTIC IN 1989 WITH BELL ATLANTIC AS HIS CANVAS MR SMITH REDREW THE COMPANY'S COST STRUCTURE AND PUSHED FOR NEW METHODS OF REGULATION THAT WOULD REWARD EFFICIENCY BELL ATLANTIC PIONEERED ADDON SERVICES SUCH AS CALLER ID AND CALL WAITING TODAY IT IS THE SLIMMEST OF THE BELLS EMPLOYING ONLY 34 WORKERS PER 10000 PHONE LINES VS AN AVERAGE OF 38 FOR THE INDUSTRY THE COMPANY'S CASHFLOW MARGINS ARE 52 COMPARED WITH THE INDUSTRY'S AVERAGE OF 42 MR SMITH TURNED HIS EFFORTS TO MULTIMEDIA AFTER HAVING TWO EPIPHANIES ONE IN A DEPARTMENT STORE'S BRIDAL SHOP THE OTHER WHILE ATTENDING A WEDDING IN THE FIRST INSTANCE FIDDLING WITH A GIFTREGISTRY COMPUTER SYSTEM HE WAS ABLE TO PUNCH UP DATA ON BRIDES AND GROOMS GOING BACK FOUR YEARS AND THOUGHT THIS WAS CLEARLY A PEOPLE'S COMPUTER STILL MR SMITH WORRIES THAT IT WILL TAKE HIS OWN TEAM ANOTHER 10 YEARS TO SHED CONSERVATIVE BELLHEAD ATTITUDES AND CATCH UP WITH HIS VISION FOR THE INFORMATION HIGHWAY I'VE BEEN INTO THIS FIVE YEARS AND I'M STILL RUNNING INTO BRICK WALLS MR SMITH SAYS AS A RESULT HE HAS SHOWN LITTLE HESITATION TO FIRE LIEUTENANTS WHO DON'T SEE THINGS HIS WAY IN FAVOR OF OUTSIDERS WHO DO THERE ARE FOLKS WHO DON'T GET IT AND THEY'RE NOT HERE ANYMORE SAYS KEN PITT A VICE PRESIDENT ADDS MR GAMBA WHO OVERSEES BELL ATLANTIC'S NETWORKS EVERY YEAR WE HAVE A MEETING OF THE TOP 120 EXECUTIVES AND AT LAST FEBRUARY'S MEETING ABOUT 37 WERE NEW AT THIS MONTH'S MEETING WE'LL PROBABLY HAVE ANOTHER 10 TO 20 NEW CHANGEOUTS MR SMITH EXPLAINS AT BELL ATLANTIC YOU ARE ABSOLUTELY FORBIDDEN TO MAKE A VICTIM STATEMENT SUCH AS YOU DIDN'T HAVE ENOUGH PEOPLE TO DO THE JOB OR THEY DIDN'T RETURN YOUR CALLS I EXPECT YOU TO PUT YOUR HEART AND SOUL INTO IT HE WARNS COME BACK WITH A HALFHEARTED MINIMAL PERFORMANCE AND I'LL SEND YOU PACKING LATE LAST YEAR HE TURNED UP THE HEAT LOWERING BONUSES FOR WORKERS OF UNITS THAT HE FELT WEREN'T ADOPTING A NEW QUALITY PROCESS QUICKLY ENOUGH THOSE WHOSE PROGRESS HE LIKED GOT A BIGGER SHARE OF THE BONUS POOL THAN THEY HAD BEEN EXPECTING WHEN HE FELT THAT BELL ATLANTIC'S COMMUNICATIONS DEPARTMENT WASN'T DOING A GOOD JOB AT PROSELYTIZING THE SMITH ETHOS INSIDE THE COMPANY HE DRESSED DOWN DEPARTMENT HEAD KEN PITT IN A BRUTAL PUBLIC CHASTISING A VERY PERSONAL ATTACK MR PITT RECALLS MR SMITH ASKED WHAT IMPRESSION A MAN FROM MARS WOULD HAVE AFTER VISITING BELL ATLANTIC FOR THE FIRST TIME MR PITT SAYS HE SAYS MR SMITH TOLD HIM POINTBLANK YOU'VE FAILED YOU CALL YOURSELVES PROFESSIONALS CLEAN UP OR YOU WON'T BE HERE ANYMORE MR SMITH ONCE GAVE MR GAMBA A BAD JOB REVIEW BY RECITING SHAKESPEARE IN AN EMPTY COMMUNITY THEATER ESCHEWING THE USUAL OFFICE PEP TALK MR SMITH INSTRUCTED MR GAMBA TO HOP IN HIS CAR AND DRIVE OVER TO THE SWARTHMORE AMPHITHEATRE THERE MR SMITH WALKED THE AISLES RECITING VERSES FROM AS YOU LIKE IT YOU KNOW JOHN ALL THE WORLD'S A STAGE AND WE ARE MERE ACTORS UPON IT MR GAMBA RECALLS HEARING JOHN YOUR AUDIENCE IS NOT APPLAUDING THE REVIEWS ON MR SMITH'S TCI DEAL AREN'T IN YET HE FACED PLENTY OF CHALLENGES WHEN HE BEGAN COURTING THE CABLE GIANT'S FORMIDABLE CHIEF EXECUTIVE JOHN MALONE LAST MAY RUNNING THROUGH THE SUMMER THE TALKS CULMINATED IN A PIVOTAL MEETING IN LATE SEPTEMBER PEOPLE FAMILIAR WITH THE NEGOTIATIONS SAY MR MALONE HAD PUSHED FOR AN EVERHIGHER PAYMENT FROM BELL ATLANTIC FOR TCI AND ITS LIBERTY MEDIA SPINOFF BUT MR SMITH HAD HAD ENOUGH SO THE TWO MEN AGREED TO MEET ONE ON ONE SANS ENTOURAGES IN A SUITE AT NEW YORK'S WALDORFASTORIA HOTEL TO WORK OUT THEIR DIFFERENCES MR SMITH POLITELY LISTENED TO MR MALONE'S ARGUMENTS FOR A FATTER PAYMENT BUT WOULDN'T BUDGE GUIDING THE CONVERSATION BACK TO BELL ATLANTIC'S ATTRIBUTES BELL ATLANTIC HAS THE SUPERIOR NETWORK WHILE TCI'S CABLE SENDS VIDEO ONLY ONEWAY MR SMITH POINTED OUT WHILE TCI HAS A POOR REPUTATION WITH CUSTOMERS MR SMITH TOLD MR MALONE BELL ATLANTIC HAS GREAT CUSTOMER SERVICE AND A VAST BILLING SYSTEM THAT CAN TRACK AND TIME EACH TRANSACTION RAY WANTED JOHN TO RECOGNIZE THE VALUE THAT WE BRING TO THE TRANSACTION SAID JAMES DICKERSON BELL ATLANTIC'S VICE PRESIDENT OF FINANCE HE WASN'T SUPPOSED TO BE THERE BUT MR DICKERSON HID OUT IN THE HOTEL LOBBY AND MADE CRYPTIC CALLS UP TO THE SUITE TO CHECK ON THE PROGRESS PRETENDING TO BE MR SMITH'S SECRETARY AND HIS CHAUFFEUR DO YOU HAVE A DEAL YET THE VICE PRESIDENT ASKED IN ONE CALL MR SMITH PLAYED ALONG NO PHYLLIS A FEW HOURS LATER MR DICKERSON CALLED AGAIN AND WAS TOLD THEY HAD A DEAL AT MR SMITH'S LOWER PRICE HE HAD WON AN AGREEMENT ON A HISTORICAL MERGER MINUTES LATER MR DICKERSON WAS EMBARRASSED TO RUN INTO THE TCI CHIEF IN THE HOTEL LOBBY MR MALONE WASN'T SURPRISED TO SEE HIM AND SIMPLY SAID ACCORDING TO MR DICKERSON YOUR BOSS IS READY TO GO HOME NOW 9312100011 931210 BUSINESS BRIEFS CODEALARM INC REACHED AN OUTOFCOURT SETTLEMENT WITH AUDIOVOX CORP HAUPPAUGE NY ON A PATENTINFRINGEMENT ACTION TERMS WEREN'T DISCLOSED VENCOR INC ACQUIRED THE ASSETS OF HOSPITAL THERAPY SERVICES INC SARASOTA FLA TERMS WEREN'T DISCLOSED PPG INDUSTRIES INC COMPLETED THE SALE OF ITS ARCHITECTURAL METALS BUSINESS TO PITTCO ENGINEERED SYSTEMS INC TWINSBURG OHIO TERMS WEREN'T DISCLOSED 9312100010 931210 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH EO COMPUTER UNIT TO BUY SOFTWARE COMPANY PENSOFT EO INC A MOUNTAIN VIEW CALIF COMPUTER MAKER CONTROLLED BY AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL BUY PENSOFT CORP A MAKER OF INFORMATIONMANAGEMENT SOFTWARE TERMS WEREN'T DISCLOSED PENSOFT A PRIVATELY HELD COMPANY WITH 16 EMPLOYEES DEVELOPED A DATABASE TECHNOLOGY THAT IS INCLUDED WITH THE AT&T EO PERSONAL COMMUNICATOR A PORTABLE SYSTEM THAT COMBINES COMPUTING AND COMMUNICATIONS FEATURES THE PENSOFT SOFTWARE USES REUSABLE CHUNKS OF COMPUTER CODES KNOWN AS OBJECTS AND TECHNOLOGY CALLED AGENTS THAT EMULATE THE WAY RESEARCHERS WOULD SEARCH FILES FOR INFORMATION ALAIN ROSSMANN EO'S CHIEF EXECUTIVE OFFICER SAID THE TWO TECHNOLOGIES INCREASINGLY WOULD BE USED TO MANAGE DIVERSE INFORMATION SUCH AS STOCK QUOTES AND PHOTOGRAPHS AND BUYING PENSOFT WAS FASTER THAN DEVELOPING THE TECHNOLOGY 9312100009 931210 WHO'S NEWS FORD MAKES FAMILY MEMBER A VICE PRESIDENT MOVE MAY PUT EDSEL FORD II IN LINE FOR A TOP POST TWO OTHERS PROMOTED BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO NAMED EDSEL B FORD II A VICE PRESIDENT A SIGN THAT THE COMPANY MAY BE GROOMING HIM FOR A TOP POSITION SOME DAY SEPARATELY FORD APPOINTED WILLIAM E ODOM CHAIRMAN OF FORD MOTOR CREDIT CO AND ROBERT L REWEY WHO HEADS FORD'S NORTH AMERICAN MARKETING OPERATIONS TO THE NEW POSITION OF GROUP VICE PRESIDENT BOTH MR ODOM 57 YEARS OLD AND MR REWEY 55 WILL RETAIN THE SAME RESPONSIBLITIES MR REWEY WAS FORMERLY A VICE PRESIDENT MR ODOM WASN'T WHILE MR FORD WILL REMAIN PRESIDENT OF FORD MOTOR CREDIT AND STILL REPORT TO MR ODOM THE PROMOTION TO VICE PRESIDENT MAKES HIM THE FIRST FORD FAMILY MEMBER TO BE A CORPORATE OFFICER SINCE HIS UNCLE WILLIAM CLAY FORD SR STEPPED DOWN AS VICE CHAIRMAN IN 1989 THE FORD FAMILY OWNS 40 OF FORD'S VOTING STOCK COMPANY INSIDERS HAVE LONG SPECULATED THAT MR FORD 45 YEARS OLD WOULD ASSUME A TOP POSITION IN THE COMPANY POSSIBLY EVEN CHAIRMAN WHEN FORD'S NEW CHAIRMAN ALEXANDER J TROTMAN 60 RETIRES IN THE LATE 1990S MR FORD'S 36YEAROLD COUSIN WILLIAM CLAY FORD JR WHO HEADS FORD'S CLIMATECONTROL DIVISION IS ALSO BELIEVED TO BE IN LINE FOR A TOP JOB SOME DAY A COMPANY SPOKESMAN PLAYED DOWN THE FAMILY CONNECTION SAYING THE PROMOTIONS OF EDSEL B FORD AND MR ODOM INDICATED THE GROWING IMPORTANCE OF FORD'S FINANCIALSERVICES GROUP BUT IN 1988 EDSEL B FORD COMPLAINED PUBLICLY THAT HE WAS BEING SLIGHTED BY FORD'S TOP EXECUTIVES WITHIN A FEW MONTHS HE AND WILLIAM CLAY FORD JR WERE GIVEN PROMOTIONS DONALD PETERSEN THEN FORD'S CHAIRMAN ABRUPTLY ANNOUNCED HIS RETIREMENT IN 1989 AND THE FORD FAMILY'S DISSATISFACTION WITH HIM WAS THOUGHT TO BE A FACTOR IN THAT DECISION SEPARATELY FORD SAID YESTERDAY THAT IT HAD ELECTED CLIFFORD R WHARTON JR 67 TO ITS BOARD EXPANDING THE BOARD TO 16 MEMBERS MR WHARTON HAD SERVED ON FORD'S BOARD FROM 1973 UNTIL JANUARY 1993 WHEN HE WAS NAMED DEPUTY SECRETARY OF STATE BY PRESIDENT CLINTON MR WHARTON RESIGNED FROM THE STATE DEPARTMENT RECENTLY AND HE STRONGLY IMPLIED THAT HE WAS FORCED OUT BY THE CLASSIC WASHINGTON PRACTICE OF SUSTAINED ANONYMOUS LEAKS TO THE PRESS 9312100008 931210 CHINA A SPECIAL REPORT BUSINESS PLAN FAR AND AWAY THE CITIES MAY BE CRAWLING WITH COMPETITORS BUT THE HINTERLAND REMAINS LARGELY UNEXPLORED BY MARCUS W BRAUCHLI GAOLAN CHINA IF ALL OF THE FAMILIAR LOCALES IN CHINA SEEM TOO CROWDED WITH OTHER INVESTORS BROADEN YOUR HORIZONS FOR AS A HANDFUL OF ADVENTUROUS ENTREPRENEURS CAN ATTEST THERE'S PLENTY OF OPPORTUNITY TO BE FOUND IN PLACES WHERE MOST FOREIGN INVESTORS HAVEN'T THOUGHT TO LOOK CONSIDER FOR EXAMPLE THIS WINDSWEPT REGION ON THE FAR SOUTHERN EDGE OF THE VAST BARREN GOBI DESERT TRANSPORT ISN'T BAD ENERGY IS ABUNDANT AND WATER IS EASILY PUMPED IN FROM THE YELLOW RIVER WHICH WENDS ITS WAY LAZILY THROUGH THE SCRUBCOVERED HILLS NEARBY MODEST ATTRIBUTES MAYBE BUT THEY WERE INDUCEMENT ENOUGH FOR THAILAND'S CP GROUP THE CONGLOMERATE HAS SUNK MORE THAN 7 MILLION INTO A GLEAMING NEW ANIMALFEED PLANT WHICH SITS ASTRIDE A RAILROAD THAT RUNS FROM THE DESOLATE REACHES OF CENTRAL ASIA INTO THE HEART OF THE MIDDLE KINGDOM WITH THE HELP OF A FEW THAI MANAGERS AND SOME FOREIGN TECHNOLOGY THE JOINTVENTURE PLANT LANZHOU CHIA TAI CO CAN PRODUCE AND DISTRIBUTE FEED AT A SPEED THAT UNDERCUTS BY A THIRD THE STATEOWNED COMPETITION HERE IN GANSU PROVINCE SUCH PIONEERS ARE GRADUALLY CHANGING THE BUSINESS MAP OF CHINA IN THE FIRST EIGHT MONTHS OF THIS YEAR 622 ENTERPRISES BACKED BY FOREIGN CAPITAL WERE REGISTERED IN GANSU PROVINCE ALONE THIS IS MORE THAN DOUBLE THE NUMBER IN 1992 AND TRIPLE THE NUMBER IN 1991 RESOURCES ARE THE BIG DRAW CP GROUP IS IN THE HEART OF A FARMING AREA CARGILL INC A MINNEAPOLISBASED AGRICULTURE COMPANY HAS A COTTONSEEDOIL PLANT NEAR JINAN THE RUGGED CAPITAL OF AGRARIAN SHANDONG PROVINCE AND FOREIGN OIL COMPANIES ARE PLANNING TO PUMP MILLIONS OF DOLLARS INTO VENTURES THAT WILL DRILL FOR CRUDE IN THE DESOLATE DESERTS OF XINJIANG A THOUSAND MILES WEST OF HERE OF COURSE IT TAKES A CERTAIN DEGREE OF PATIENCE TO SURVIVE LET ALONE FLOURISH IN SUCH FARFLUNG REGIONS YOU NEED TIME TO ESTABLISH CONNECTIONS SAYS RAKPHONG SOMBOON AN ETHNIC CHINESE FROM NORTHERN THAILAND WHO MANAGES THE CP GROUP PLANT ONCE YOU DO THEN IT WILL GO WELL BUT EVEN ETHNIC CHINESE FIND IT ROUGH IN OUTOFTHEWAY CHINA ALTHOUGH ONE CP GROUP MANAGER DID MEET AND MARRY A WOMAN FROM GANSU PROVINCE THE SOCIAL LIFE IS GENERALLY GRIM MR SOMBOON AND HIS THREE THAI COMPATRIOTS HERE SPEND WEEKENDS WATCHING SATELLITE TELEVISION IN THEIR FACTORY DORMITORY FOR COMPANIES THOUGH THE REWARD IS FINDING A PROFITABLE NICHE THAT MAY NOT BE AVAILABLE IN CHINA'S CROWDED SPECIAL ECONOMIC ZONES WE HAVE MORE POTENTIAL FOR DEVELOPMENT THAN COASTAL AREAS SAYS KE MAOSHENG THE LIVELY 53YEAROLD MAYOR OF LANZHOU GANSU'S CAPITAL CITY MR KE HAS TRAVELED TO HONG KONG THE US AND EUROPE WITH THAT MESSAGE AND A SUITCASE FULL OF BROCHURES PROMISING FAST INFRASTRUCTURE DEVELOPMENT CHEAP LABOR AND TAX BREAKS FOR FOREIGN INVESTORS ONCE A TRAILHEAD OF THE SILK ROAD LANZHOU TODAY IS A CITY OF 26 MILLION PEOPLE WITH PETROCHEMICAL TEXTILE AND AGRICULTURALPROCESSING FACTORIES CP GROUP'S FEED PLANT RELIES ON THE RAILROAD TO DELIVER ITS PRODUCT TO OTHER PARTS OF CHINA AND TO THE COUNTRY'S PORTS FOR SHIPMENT ABROAD FOR ITS PART LANCON LEATHER CO DRAWS ON GANSU'S TEXTILETRAINED WORK FORCE AND ITS HUGE ANIMALHUSBANDRY INDUSTRY TO PRODUCE SHOES INCLUDING SOME OF YAK LEATHER BOTH FOR THE CHINESE MARKET AND FOR EXPORT LANCON A JOINT VENTURE WITH MILAN'S FERRUCCIO CONTI INTERNATIONAL CO IS THE FIRST OF ITS KIND IN GANSU NOTES LI DONG THE VENTURE'S CHINESE CHAIRMAN AND LIKE MANY FOREIGN INVESTMENTS IN CHINA'S FURTHEST REMOVES HE GLOATS IT HAS ONE GREAT ADVANTAGE NO COMPETITION 9312100007 931210 CHINA A SPECIAL REPORT BUSINESS PLAN FREIGHTED WITH DIFFICULTIES BANDITS TRAFFIC AND TARIFFS ARE JUST A FEW OF THE THINGS THAT MAKE MOVING GOODS AROUND CHINA SO PROBLEMATIC BY JESSE WONG CUSTOMERS WHO ORDER A VOLKSWAGEN FROM VW'S JOINTVENTURE PLANT IN SHANGHAI CAN EXPECT DELIVERY WITHIN SIX TO EIGHT WEEKS WHAT THEY SHOULDN'T COUNT ON IS A SHINY NEW CAR WITH NO SCRATCHES NO DENTS AND HARDLY ANY MILEAGE ON THE ODOMETER FOR IN CHINA WHERE PRODUCT DISTRIBUTION CAN BE A NIGHTMARE THE ONLY WAY TO GET THE VW TO THE CUSTOMER IS TO DRIVE IT THERE IN ONE CASE THAT ENTAILED A TRIP OF SOME 2000 MILES OVER MOUNTAINS ACROSS DESERTS AND DOWN MANY DIRT ROADS THIS ISN'T LIKE EUROPE WHERE YOU HAVE PURPOSEBUILT CARRIERS TO TRANSPORT CARS BY TRUCK OR BY RAILWAY EXPLAINS PETER LOEW DEPUTY MANAGING DIRECTOR OF SHANGHAI VOLKSWAGEN AUTOMOTIVE CO THE ASSEMBLY PLANT OWNED BY VOLKSWAGEN AG AND THREE CHINESE PARTNERS IN CHINA THE CUSTOMER EITHER PICKS UP THE CAR HIMSELF OR HAS IT DRIVEN TO HIM FEW COUNTRIES HAVE AS MANY OBSTACLES TO THE MOVEMENT OF GOODS INTERNALLY OR ACROSS THE BORDER AS CHINA HAS AND FOR THE FOREIGN INVESTOR THAT CAN MEAN HIGHER COSTS AND POTENTIALLY SMALLER MARKETS THROUGHOUT THE COUNTRY URBAN ROADWAYS ARE USUALLY CLOGGED PORTS AND RAILWAY DEPOTS OFTEN LACK BASIC EQUIPMENT SUCH AS FORKLIFTS TO MOVE CARGO FOR THOSE WHO TAKE TO THE HIGHWAYS THERE ARE BANDITS IN SOME AREAS AND ROADBLOCKS IN OTHERS WHERE VILLAGE CHIEFS DEMAND A TOLL IN EXCHANGE FOR PASSAGE WHAT'S MORE TARIFFS HIGHER THAN 200 ON SOME PRODUCTS STOP MANY GOODS FROM EVEN GETTING INTO CHINA IN THE FIRST PLACE FINDING A WAY AROUND THE BARRIERS REQUIRES A BIT OF IMAGINATION AB ASTRA OF SWEDEN FOR EXAMPLE FACED POTENTIAL TROUBLE WHEN IT STARTED EXPORTING DRUGS TO CHINA ON A LARGE SCALE IN 1989 CHINESE AUTHORITIES INSISTED ON TESTING EACH SHIPMENT BUT ONLY ANTIQUATED EQUIPMENT WAS AVAILABLE ASTRA COULD SEE TROUBLE LOOMING DRUGS LANGUISHING ON THE DOCK EXPIRATION DATES PASSING AND PROFITS EVAPORATING SO ASTRA DONATED TESTING EQUIPMENT TO CHINA'S HEALTH MINISTRY AND EVEN TRAINED ITS TECHNICIANS TO USE IT THE UPSHOT SALES OF LOSEC ASTRA'S TREATMENT FOR GASTROINTESTINAL DISORDERS ARE NOW SOARING IN CHINA WE COULDN'T SELL IN A LIFETIME IN HONG KONG WHAT WE SELL WITH ONE DELIVERY IN CHINA SAYS RAYMOND HO THE HEAD OF ASTRA'S HONG KONG OFFICE HE SPEAKS RHAPSODICALLY OF CHINA'S MANY MILLIONS OF ULCERS FOR COCACOLA CO THE PROBLEM WAS TRAFFIC LAWS IN SHANGHAI THE CITY BANS DELIVERY TRUCKS FROM ITS CENTER DURING THE DAYTIME SO COKE TURNED IN PART TO DELIVERING BY TRICYCLE BUT SHANGHAI CONSIDERS TRICYCLES A TRAFFIC NUISANCE AS WELL AND SEVERELY RESTRICTS THE NUMBER OF PERMITS FOR THE VEHICLES TO GET AROUND THIS COKE STRUCK A BARGAIN IT WOULD HIRE SOME OF SHANGHAI'S UNEMPLOYED AS PEDDLERS IF THE BUREAUCRATS LOOSENED UP ON PERMITS SHANGHAI BOUGHT THE DEAL AND NOW COKE HAS RIGHTS TO A 500TRICYCLE FLEET IN HIS HONG KONG OFFICE STEVE CHAN CHINAREGION MANAGER OF COCACOLA CHINA LTD FLIPS THROUGH A CORPORATE BROCHURE THAT SHOWS COKE BEING DELIVERED BY PUSHCART IN BEIJING AND BY MULE IN THE HILLS NEAR TIANJIN TO MAKE THINGS WORK IN CHINA HE SAYS YOU HAVE TO BE INNOVATIVE INNOVATIVE THOUGH IS AN UNDERSTATEMENT WHEN IT COMES TO MOVING ANYTHING ACROSS THE BORDER THE CHINESE BUREAUCRACY DOESN'T MAKE IT EASY ON IMPORTERS EVERY MINISTRY HAS A THUMB IN THE SOUPAND A WELTER OF PAPERWORK WAITING FOR FOREIGN FIRMS CHINA'S FREIGHT SYSTEM ALSO LEAVES A LOT TO BE DESIRED ESTIMATES INDICATE THAT CHINA IS MEETING ONLY A FRACTION OF ITS GENERALAVIATION DEMAND RAIL TRAFFIC IS UNPREDICTABLE AND THE ROLLING STOCK OUTMODED OF ALL THE COAL THAT WAS DUG OUT OF THE COUNTRY'S MINES LAST YEAR 30 STILL SITS WHERE IT WAS FOUND WAITING FOR THE TRAINS TO ARRIVE A HONG KONG GARMENT MAKER RECALLS ONCE BOOKING CARGO SPACE ON A FLIGHT OUT OF SHANGHAI AFTER WATCHING HIS FREIGHT GET LOADED HE LEFT CONFIDENT THAT IT WAS ON ITS WAY NO SUCH LUCK THE GROUND CREW IN NEED OF THE SPACE HAULED HIS GARMENTS OFF THE PLANE TO MAKE WAY FOR SOME GOVERNMENT GOODS ANYWHERE ELSE SAYS THE BUSINESSMAN YOU WOULD THINK THAT IF YOU HAD SEEN IT LOADED WITH YOUR OWN EYES THEN IT MUST BE OK NOT CHINA THE SITUATION ONLY GETS WORSE AWAY FROM THE COASTAL CITIES IN WUHAN IN CENTRAL CHINA THE STATE ASSIGNS THREE TRUCKS TO HAUL CONTAINERS TO AND FROM THE RAIL STATION BUT WITH TRANSPORT TIGHT THE TRUCKS SOMETIMES SNEAK OFF TO ANOTHER CITY WHERE HAULING RATES ARE HIGHER AS A RESULT GREASING PALMS HAS BECOME STANDARD OPERATING PROCEDURE IN SOME PARTS A MANAGER WITH ONE US TRADING COMPANY SAYS HER RAILFREIGHT AGENT ESTIMATES THAT ABOUT 10 OF HER FREIGHT COSTS ARE FOR GIFT GIVING A GROWING NUMBER OF PRIVATE TRUCKING COMPANIES ARE TAKING TO THE ROADS BUT THE HIGHWAYS POSE THEIR OWN HAZARDS ALONG ONE STRETCH IN SOUTHERN CHINA VILLAGERS HAVE OCCASIONALLY TOSSED A DEAD BODY INTO THE PATH OF AN ONCOMING TRUCK AT NIGHT THE SHOCKED DRIVER WHO STOPS TO INVESTIGATE IS ACCUSED OF RUNNING OVER A PEDESTRIAN AND MADE TO PAY COMPENSATION THAT PATCH OF GUANGDONG PROVINCE IS KNOWN AMONG HONG KONG TRUCKERS AS THE HOME OF THE MIDNIGHT FLYING CORPSE FOR THOSE COMPANIES LUCKY ENOUGH TO GET THEIR PRODUCTS TO THE RIGHT WAREHOUSE THE NEXT TEST IS GETTING THEM OUT OF THE WAREHOUSE TO THE CONSUMER HERE THE RULE OF FIRST IN FIRST OUT DOESN'T APPLY SO IT IS THAT INCHCAPE PACIFIC LTD A BRITISH COMPANY DISTRIBUTES CADBURY AND FERRERO CHOCOLATES CHIEFLY DURING THE COLD SEASON THE REASON THERE'S NO GUARANTEE THAT THE WAREHOUSE AND RETAILER WILL KEEP THE AIRCONDITIONING TURNED ON DURING THE SUMMER MONTHS SHIPPING DURING THE WINTER BEATS WATCHING THE INVENTORY MELT MR WONG IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HONG KONG BUREAU 9312100006 931210 WHAT'S NEWS WORLDWIDE THE PRESIDENT TOUGHENED HIS STANCE AGAINST VIOLENT CRIME CLINTON TOLD A GROUP OF MAYORS AND POLICE CHIEFS THAT CRIME IS TEARING THE HEART OUT OF OUR COUNTRY SAYING AMERICANS ARE TIRED OF THE VIOLENCE HE URGED CONGRESS TO APPROVE ANTICRIME LEGISLATION EMPHASIZING THE NEED FOR MORE POLICE ATTORNEY GENERAL RENO SAID SHE FAVORS THE LICENSING OF HANDGUN OWNERS AND DECLARED IT OUGHT TO BE AT LEAST AS HARD TO GET A GUN AS IT IS TO GET A DRIVER'S LICENSE THE WHITE HOUSE GATHERING OF OFFICIALS FROM 35 CITIES CAME TWO DAYS AFTER A GUNMAN KILLED FIVE PEOPLE AND WOUNDED 18 ABOARD A NEW YORK COMMUTER TRAIN CLINTON IS PLANNING TO MEET WITH SYRIAN PRESIDENT ASSAD NEXT MONTH SECRETARY OF STATE CHRISTOPHER SAID THE TWO PRESIDENTS WOULD HOLD TALKS IN MIDJANUARY IN GENEVA THE MEETING WHICH WOULD PROVIDE ASSAD WITH THE PRESTIGE OF A SUMMIT IN EXCHANGE FOR A HOPEDFOR BREAKTHROUGH IN REGIONAL NEGOTIATIONS UNDERSCORES SYRIA'S KEY ROLE IN ACHIEVING A MIDEAST PEACE SETTLEMENT CHRISTOPHER ALSO SAID FORMAL ARABISRAELI TALKS WOULD RESUME NEXT MONTH IN WASHINGTON PLO CHIEF ARAFAT AND ISRAEL'S FOREIGN MINISTER MET TO SMOOTH OVER DIFFERENCES THREATENING TO DELAY IMPLEMENTATION OF A PALESTINIAN AUTONOMY ACCORD SERB MORTAR ATTACKS KILLED AT LEAST EIGHT PEOPLE IN SARAJEVO INCLUDING ONE OF THE CITY'S LEADING PEDIATRICIANS KNOWN FOR HIS WORK WITH THE UN CHILDREN'S EDUCATION FUND MEANWHILE MEDIATORS POSTPONED A RESUMPTION OF BOSNIA PEACE TALKS CHINA IS PREPARING TO UNDERTAKE UNPRECEDENTED ECONOMIC REFORMS INCLUDING A PARTIALLY CONVERTIBLE CURRENCY TO SPEED ITS TRANSITION TO A MARKET ECONOMY ACCORDING TO VICE PREMIER ZHU THE NATION'S ECONOMIC CZAR A NATURAL BLOOD PROTEIN CAN RESTORE FLAGGING IMMUNE RESPONSES OF CELLS TAKEN FROM PEOPLE INFECTED WITH HIV THE VIRUS THAT CAUSES AIDS ACCORDING TO A TESTTUBE STUDY THE PROTEIN MADE BY BIOTECH FIRM GENETICS INSTITUTE IS SLATED TO BEGIN HUMAN CLINICAL TESTS NEXT YEAR PRESIDENT YELTSIN APPEALED TO RUSSIAN VOTERS TO ELECT PARLIAMENT CANDIDATES PREPARED FOR HARD WORK NOT HATRED AND PLEDGED TO COOPERATE WITH ALL DEPUTIES REGARDLESS OF PARTY AFFILIATION HIS BRIEF SPEECH WAS BROADCAST THREE DAYS BEFORE SUNDAY'S ELECTIONS AND CONSTITUTIONAL REFERENDUM A RELIGIOUS REVIVAL IS SWEEPING RUSSIA ACCORDING TO A STUDY RELEASED BY THE UNIVERSITY OF CHICAGO'S NATIONAL OPINION RESEARCH CENTER THREEQUARTERS OF THOSE SURVEYED EXPRESSED ABSOLUTE OR A GREAT DEAL OF CONFIDENCE IN RELIGION A RATING NEARLY TWICE AS HIGH AS AMERICANS REPORT AN EXBANKER WAS SENTENCED TO 37 MONTHS IN PRISON FOR HIS ROLE IN GRANTING 5 BILLION IN ILLEGAL LOANS TO IRAQ IN THE 1980S ALTHOUGH THE JUDGE SAID THE CASE AGAINST CHRISTOPHER DROGOUL WAS BLOWN WAY OUT OF PROPORTION THE EXATLANTA BRANCH MANAGER FOR ITALY'S BANCA NAZIONALE DEL LAVORO HAD PLEADED GUILTY TO LYING TO THE FED AND WIRE FRAUD THE US REACTED WITH RESTRAINT TO NORTH KOREA'S LATEST SALVO IN A DISPUTE OVER NUCLEAR INSPECTIONS SAYING COMMENTS BY A NORTH KOREAN FOREIGN MINISTRY AIDE WEREN'T OFFICIAL PRONOUNCEMENTS THE PYONGYANG OFFICIAL SAID TALKS WITH THE US WOULD END UNLESS WASHINGTON ACCEPTS NORTH KOREA'S OFFER TO ALLOW ONLY LIMITED INSPECTIONS A TWODAYOLD MULTIRACIAL COUNCIL TESTED THE LIMITS OF ITS POLITICAL POWER IN SOUTH AFRICA BY INSTRUCTING POLICE TO MOVE INTO PARTS OF THE KWAZULU BLACK HOMELAND TO PREVENT VIOLENCE THE WHITELED POLICE FORCE TRADITIONALLY HAS RESPECTED THE NOMINAL AUTONOMY OF LOCAL OFFICERS IN KWAZULU POWER BASE OF INKATHA PARTY LEADER BUTHELEZI THE UN GENERAL ASSEMBLY LIFTED A NONBINDING OIL EMBARGO AGAINST SOUTH AFRICA THAT HAD BEEN IMPOSED BECAUSE OF PRETORIA'S RACIAL POLICIES A MANDATORY ARMS EMBARGO AUTHORIZED BY THE SECURITY COUNCIL IN 1977 IS EXPECTED TO REMAIN IN FORCE UNTIL A NEW SOUTH AFRICAN GOVERNMENT IS FORMED AFTER APRIL ELECTIONS UNDERCOVER AIRPORT INSPECTORS GAINED ACCESS TO RESTRICTED AREAS IN 15 OUT OF 20 ATTEMPTS DURING A TEST OF SECURITY PROCEDURES AT FOUR MAJOR AIRPORTS ACCORDING TO A TRANSPORTATION DEPARTMENT REPORT THE REPORT RELEASED THIS WEEK SUGGESTED THAT AIRPORT SECURITY EMPLOYEES WERE MUCH MORE VIGILANT IN DETECTING FIREARMS 9312100005 931210 BUSINESS BRIEF A SCHULMAN INC CONCERN SAYS EARNINGS ROSE IN 1ST PERIOD ENDED NOV 30 A SCHULMAN INC CITING STRONG NORTH AMERICAN ORDERS SAID IT EXPECTS IT WILL REPORT HIGHER EARNINGS FOR THE FIRST QUARTER ENDED NOV 30 THE AKRON OHIO SUPPLIER OF PLASTIC COMPOUNDS AND RESINS EARNED 89 MILLION OR 30 CENTS A SHARE A YEAR EARLIER WE HAVE SEEN A STRONG LEVEL OF BUSINESS IN NORTH AMERICA FOR THE FIRST QUARTER OF FISCAL 1994 AND OUR MANUFACTURING BACKLOG IS AT FIRM LEVELS INTO OUR SECOND QUARTER SAID TERRY L HAINES PRESIDENT AND CHIEF EXECUTIVE OFFICER THERE HAVE BEEN IMPROVEMENTS IN OUR EUROPEAN BUSINESS AND WE EXPECT THIS TO CONTINUE MODESTLY IN THE UPCOMING MONTHS IN NORTH AMERICA THE COMPANY SAID THE AUTOMOTIVE PACKAGING APPLIANCE INDUSTRIAL AND CONSUMER GOODS MARKETS ARE STRONG 9312100004 931210 WHITE HOUSE PLEDGES TO STEP UP ASSISTANCE TO OIL GAS INDUSTRIES WASHINGTON THE CLINTON ADMINISTRATION PLEDGED TO STEP UP RESEARCH AND DEVELOPMENT ASSISTANCE TO THE GAS AND OIL INDUSTRIES BUT DECLINED TO SPECIFY HOW MUCH MONEY IT WOULD SPEND ON THE EFFORT THE PROPOSAL IS INCLUDED IN THE ADMINISTRATION'S LONGAWAITED GAS AND OIL INITIATIVE WHICH ENERGY SECRETARY HAZEL O'LEARY UNVEILED AT A NEWS CONFERENCE THE INITIATIVE WHICH CONSISTS LARGELY OF PROPOSALS TO STUDY VARIOUS POLICY OPTIONS DESIGNED TO STIMULATE PRODUCTION OF OIL AND ESPECIALLY NATURAL GAS WILL ENTAIL NO NEW SPENDING OVERALL AN ENERGY DEPARTMENT SPOKESMAN SAID THE RESEARCH AND DEVELOPMENT PROPOSALS INCLUDE NEW PROGRAMS TO DEVELOP ADVANCED DRILLING SYSTEMS FOR NATURAL GAS AND NEW COMPUTER TECHNOLOGY TO ASSIST IN THE SEARCH FOR NATURAL GAS AND OIL THE ENERGY DEPARTMENT ALSO WILL HELP INDUSTRY AND STATE GOVERNMENTS SEEKING TO INCREASE THE AVAILABILITY OF TECHNOLOGICAL INFORMATION RELATED TO GAS AND OIL EXPLORATION IN THE PACKAGE THE ADMINISTRATION ALSO PLEDGED TO ENCOURAGE STATE AGENCIES TO END FUELSPECIFIC SUBSIDIES SAID IT WILL STUDY THE ECONOMIC SOCIAL AND ENVIRONMENTAL BENEFITS AND COSTS OF EXPORTING OIL FROM ALASKA'S NORTH SLOPE AND PROMISED TO ASSIST THE FEDERAL ENERGY REGULATORY COMMISSION IN REMOVING BARRIERS TO ENVIRONMENTALLY SOUND CONSTRUCTION OF NATURALGAS PIPELINES AND STORAGE FACILITIES THE INITIATIVE AS EXPECTED ALSO CALLS FOR STUDIES TO EXAMINE WAYS TO INCREASE GAS AND OIL DRILLING IN THE GULF OF MEXICO FOR EXAMPLE BY REDUCING ROYALTY PAYMENTS TO CONSIDER EASING ENVIRONMENTAL REGULATION OF OIL REFINERS AND TO WEIGH POSSIBLE TAX BREAKS RELATED TO OIL AND GAS EXPLORATION AND PRODUCTION ON MARGINAL STRIPPER WELLS 9312100003 931210 WHO'S NEWS MASSACHUSETTS GENERAL HOSPITAL TO BE LED BY BRANDEIS'S THIER BOSTON MASSACHUSETTS GENERAL HOSPITAL SAID IT PICKED SAMUEL O THIER CURRENTLY THE PRESIDENT OF BRANDEIS UNIVERSITY TO BE ITS NEXT PRESIDENT AND CHIEF EXECUTIVE OFFICER THE APPOINTMENT WILL PUT THE 56YEAROLD DR THIER IN CHARGE OF ONE OF AMERICA'S MOST RENOWNED HOSPITALS AS IT PREPARES TO MERGE WITH A MAJOR LOCAL RIVAL BRIGHAM & WOMEN'S HOSPITAL THAT MERGER WILL CREATE THE LARGEST MEDICAL CENTER IN THE US WITH NEARLY 1800 BEDS IT ALSO IS SEEN AS A FORCE FOR SIZABLE COSTCUTTING AND CONSOLIDATION AS THE TWO HOSPITALS JOIN FORCES IN A PHONE INTERVIEW YESTERDAY DR THIER DESCRIBED THE MERGER AS BOLD AND EXCITING BUT SAID IT WILL TAKE SOME DOING TO MAKE IT ALL WORK HE SAID HE WILL TRY EARLY ON TO UNITE THE TWO HOSPITALS' SUPPORT SERVICES WHILE MOVING MORE GINGERLY IN AREAS SUCH AS MEDICAL RESEARCH AND PATIENT CARE DR THIER SAID HE WANTS TO BE ESPECIALLY CAREFUL THE MERGER DOESN'T LEAD TOP SCIENTISTS AND DOCTORS TO BREAK AWAY FROM THEIR HOSPITAL AFFILIATIONS TOGETHER MASSACHUSETTS GENERAL AND BRIGHAM & WOMEN'S SPEND ABOUT 350 MILLION A YEAR IN RESEARCH FAR MORE THAN MOST TEACHING HOSPITALS STILL DR THIER SAID HE HOPES THAT OVER TIME THE MERGER WILL BRING BETTER AND MORE EFFICIENT PATIENT CARE I HOPE WE AREN'T JUST MERGING TO IMPROVE OUR CONTRACTING HE SAID CONSULTANTS AND COMPETITORS SAY MASSACHUSETTS GENERAL IS LIKELY TO BECOME A CLOSELY WATCHED TEST CASE OF WHETHER A TOPFLIGHT HOSPITAL CAN SLASH COSTS WITHOUT HURTING THE QUALITY OF CARE THE HOSPITAL IS CLOSELY AFFILIATED WITH HARVARD MEDICAL SCHOOL AND OVER THE YEARS HAS BEEN HOME TO SIX NOBEL LAUREATES IN MEDICINE BUT IT ALSO IS REGARDED AS A MECCA FOR HIGHTECH EXPENSIVE PRACTICES THAT ARE UNDER FIRE FROM COSTCONSCIOUS INSURERS DR THIER SUCCEEDS ROBERT BUCHANAN 64 WHO IS RETIRING NEXT YEAR AS THE GENERAL DIRECTOR AND CEO OF MASSACHUSETTS GENERAL DR THIER WAS PICKED AFTER A YEARLONG SEARCH IN WHICH THE CEO'S JOB WAS BROADENED TO INCLUDE OVERSEEING SEVEN SMALL AFFILIATES AS WELL AS THE MAIN BOSTON HOSPITAL HE IS EXPECTED TO TAKE OFFICE NEXT SUMMER AFTER STEPPING DOWN JULY 1 FROM HIS BRANDEIS JOB 9312100002 931210 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT COLUMBIA HEALTHCARE CORP 300 MILLION TWOPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 150 MILLION OF NOTES DUE DEC 15 2000 WAS PRICED AS 6125S AT 99803 TO YIELD 616 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 150 MILLION IN DEBENTURES DUE DEC 15 2023 WAS PRICED AS 75S AT 99175 TO YIELD 757 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 125 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP DAN RIVER INC 120 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED AT PAR TO YIELD 10125 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FORD MOTOR CREDIT CO 300 MILLION OF NOTES DUE DEC 15 2005 PRICED AS 6375S AT 99638 TO YIELD 6419 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO MORGAN STANLEY GROUP INC 150 MILLION OF NOTES DUE DEC 15 2003 PRICED AS 6375S AT 99715 TO YIELD 6414 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SCOTSMAN GROUP INC 165 MILLION OF SENIOR SECURED NOTES DUE DEC 15 2000 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP TRITON ENERGY CORP 1278 MILLION PROCEEDS OF SENIOR SUBORDINATED DISCOUNT NOTES DUE DEC 15 2000 PRICED AT 75176 FOR A 975 YIELD TO MATURITY THE NOTES PAY NO INTEREST FOR THE FIRST THREE YEARS THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO AUTHENTIC FITNESS CORP TWO MILLION SHARES SOLD AT 31125 APIECE ACCORDING TO THE COMPANY IN AN OFFERING MANAGED BY SMITH BARNEY SHEARSON INC BROTHERS GOURMET COFFEES INC INITIAL OFFERING OF 49 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ORBITAL SCIENCES CORP 28 MILLION COMMON SHARES PRICED AT 1650 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CALIFORNIA DEPARTMENT OF WATER RESOURCES 190 MILLION WATERSYSTEM REVENUE BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52043 YIELDS FOR REOFFERED BONDS RANGE FROM 31 IN 1995 TO 531 IN 2027 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA CHICAGO 102 MILLION 1993 SERIES A AND SERIES B GASSUPPLY REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE ISSUE INCLUDES 75 MILLION 1993 SERIES A FIXEDRATE BONDS THEY ARE 575S PRICED AT PAR AND ARE TO YIELD 575 ON DEC 1 2023 THE 27 MILLION 1993 SERIES B BONDS ARE VARIABLERATE SECURITIES 255S PRICED AT PAR AND ARE NONCALLABLE UNTIL THEIR DEC 1 1994 PUT DATE THEY HAVE A FINAL MATURITY OF DEC 1 2023 YIELD WILL BE RESET YEARLY AT THE ANNUAL PUT DATE BOTH THE FIXEDRATE BONDS AND VARIABLERATE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX S&P HAS RATED THE FIXEDRATE BONDS DOUBLEAMINUS AND MOODY'S IS EXPECTED TO ASSIGN A DOUBLEA3 RATING THE VARIABLERATE BONDS HAVE BEEN RATED SINGLEA1PLUS/DOUBLEAMINUS BY S&P MOODY'S IS EXPECTED TO ASSIGN A DOUBLEA3 RATING MASSACHUSETTS HEALTH AND EDUCATIONAL FACILITIES AUTHORITY 1503 MILLION SERIES G SECURITIES FOR THE NEW ENGLAND MEDICAL CENTER HOSPITALS PRICED BY A MORGAN STANLEY & CO GROUP INCLUDED IN THE OFFERING ARE 899 MILLION OF CURRENTINTEREST REVENUE BONDS WHICH ARE PRICED TO YIELD FROM 36 IN 1996 TO 545 IN 2024 NOT FORMALLY REOFFERED TO INVESTORS IS A TOTAL OF 604 MILLION OF THE FOLLOWING DERIVATIVES STRUCTURED YIELDCURVE NOTES WITH A FINAL MATURITY OF JULY 1 2013 AUCTIONRATE NOTES THAT WILL MATURE JULY 1 2019 AND YIELDCURVE NOTES THAT WILL MATURE JULY 1 2019 OKLAHOMA MUNICIPAL POWER AUTHORITY 1044 MILLION SERIES 1993A POWERSUPPLYSYSTEM REVENUE BONDS PRICED BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE FROM 275 IN 1995 TO 527 IN 2028 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P WISCONSIN 210 MILLION 1993 SERIES 4 AND SERIES 5 GENERALOBLIGATION REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP THE ISSUE INCLUDES 764 MILLION SERIES 4 CAPITALIMPROVEMENT BONDS PRICED TO YIELD FROM 2 IN MAY 1994 TO 48 IN 2006 YIELDS FOR THE 1337 MILLION SERIES 5 VETERANS HOUSING BONDS RANGE FROM 25 IN NOVEMBER 1994 TO 55 IN 2023 BOTH MOODY'S AND S&P ARE EXPECTED TO RATE THE BONDS DOUBLEA FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NIKKO SECURITIES CO INTERNATIONAL THE OFFERING SERIES 19944 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS NATIONSBANK CORP 13 BILLION CREDITCARD SECURITIES OFFERING PRICED BY UNDERWRITERS LED BY NATIONSBANC SERVICES CO ACCORDING TO MCM CORPORATEWATCH THE OFFERING THROUGH A SPECIALPURPOSE TRUST CALLED NATIONSBANK CREDIT CARD MASTER TRUST 19931 AND 19932 INCLUDES 750 MILLION OF 19931A SENIOR CERTIFICATES PRICED AS 475S AS 999063 TO YIELD 483 38 BASIS POINTS ABOVE THREEYEAR TREASURYS EXPECTED FINAL MATURITY IS DEC 16 1996 AND LEGAL MATURITY IS SEPT 15 1998 THE CERTIFICATES ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P ALSO INCLUDED ARE 319 MILLION OF 19931B SUBORDINATED CERTIFICATES PRICED AS 4875S AT 996563 TO YIELD 505 60 BASIS POINTS ABOVE THREEYEAR TREASURYS EXPECTED FINAL MATURITY IS JAN 15 1997 AND LEGAL FINAL MATURITY IS SEPT 15 1998 RATINGS ARE SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE OFFERING ALSO INCLUDES 500 MILLION OF 19932A SENIOR CERTIFICATES PRICED AS 6S AT 991719 TO YIELD 619 55 BASIS POINTS ABOVE 10YEAR TREASURYS EXPECTED FINAL MATURITY IS DEC 15 2003 AND LEGAL FINAL MATURITY IS DEC 15 2005 RATINGS ARE TRIPLEA FROM BOTH MOODY'S AND S&P ALSO INCLUDED ARE 319 MILLION OF 19932B SUBORDINATED CERTIFICATES PRICED AS 625S AT 993594 TO YIELD 642 78 BASIS POINTS ABOVE 10YEAR TREASURYS EXPECTED FINAL MATURITY IS JAN 15 2004 AND LEGAL FINAL MATURITY IS DEC 15 2005 RATINGS ARE SINGLEA2 FROM MOODY'S AND SINGLEA BY S&P ALL SUBORDINATED CERTIFICATES ARE UNDERWRITTEN SOLELY BY NATIONSBANC ARGENTINA SOVEREIGN 1 BILLION OF 8375 GLOBAL BONDS DUE DEC 20 2003 AT ISSUE AND REOFFER PRICE 99368 VIA MERRILL LYNCH & CO SALOMON BROTHERS INC AND BANCO RIO DE LA PLATA SA BONDS YIELD 847 A MARGIN OF 280 BASIS POINTS OVER 10YEAR US TREASURY THE ISSUE IS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P FEES 125 PAYABLE SEMIANNUALLY BANCO DEL SUD SA ARGENTINA 50 MILLION OF 8125 EUROBONDS DUE DEC 16 1996 AT ISSUE AND REOFFER PRICE 99778 VIA BEAR STEARNS INTERNATIONAL LTD BONDS YIELD 821 A SPREAD OF 375 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY BIRMINGHAM MIDSHIRES BUILDING SOCIETY UNITED KINGDOM 50 MILLION OF 9375 PERMANENT INTERESTBEARING SHARES AT ISSUE PRICE 100165 VIA SG WARBURG SECURITIES LTD REOFFERED AT 9954 TO GIVE RUNNING YIELD 9418 A MARGIN OF 280 BASIS POINTS OVER 2017 UK GILT FEES 1375 PAYABLE SEMIANNUALLY CREDIT NATIONAL FRANCE 300 MILLION FRENCH FRANCS OF 575 EUROBONDS DUE JAN 3 2002 AT ISSUE AND REOFFER PRICE 99812 VIA CREDIT LYONNAIS BONDS YIELD 578 A MARGIN OF 14 BASIS POINTS OVER COMPARABLE FRENCH TREASURY INVESTORS HAVE OPTION AT EACH COUPON PAYMENT DATE TO TAKE CASH PAYMENT OR REINVEST INTEREST TO PURCHASE MORE BONDS FEES 035 EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION MARKS OF 575 EUROBONDS DUE OCT 29 1998 AT ISSUE PRICE 10388 VIA DRESDNER BANK AG BONDS WILL TRADE INTERCHANGEABLY WITH 500 MILLION MARKS OF IDENTICAL BONDS OUTSTANDING NEW ISSUE SIZE ONE BILLION MARKS BONDS YIELD 514 AFTER DEDUCTING FEES OF 1375 POINTS A SPREAD OF 55 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT BOND ALL OTHER TERMS UNCHANGED FINLAND SOVEREIGN 45 BILLION YEN OF 275 EUROBONDS DUE JAN 11 1999 AT ISSUE AND REOFFER PRICE PAR VIA DAIWA EUROPE LTD BONDS YIELD MARGIN OF 29 BASIS POINTS OVER COMPARABLE JAPANESE GOVERNMENT BOND FEES 025 HSH OVERSEAS FINANCE LTD HONG KONG PARENT 150 MILLION OF CONVERTIBLE EUROBONDS DUE JAN 6 2001 AT ISSUE PRICE PAR VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD INDICATED COUPON 5 GUARANTOR AND PARENT HONG KONG AND SHANGHAI HOTELS LTD BONDS CONVERTIBLE INTO ORDINARY SHARES OF PARENT AT INDICATED PREMIUM 16 TO 19 FROM MARCH 6 1994 TO DEC 31 2000 BONDS CALLABLE AFTER THREE YEARS AT PAR SUBJECT TO SHARE PRICE BEING AT LEAST 130 OF CONVERSION PRICE TERMS TO BE FIXED BY TOMORROW FEES 25 INDOSUEZ CAPITAL FUNDING NO 1 LTD SPECIALPURPOSE VEHICLE 100 MILLION OF ASSETBACKED FLOATINGRATE EURONOTES DUE DEC 20 2005 AT ISSUE AND REOFFER PRICE 994 VIA MORGAN STANLEY INTERNATIONAL BONDS SECURED ON PORTFOLIO OF HIGHYIELD CORPORATE BONDS PURCHASED IN THE OPEN MARKET PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 100 BASIS POINTS CALLABLE ON EVERY INTERESTPAYMENT DATE FROM DEC 20 1997 THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED DOUBLEA2 BY MOODY'S THE LUXEMBOURGLISTED BONDS ARE DENOMINATED IN 100000PLUS INCREMENTS OF 10000 AND 2 MILLIONPLUS INCREMENTS OF 500000 FEES UNDISCLOSED MUTUAL GROUP US INC CANADIAN PARENT 125 MILLION OF UNSECURED SUBORDINATED 725 EUROBONDS DUE JAN 1 2004 AT ISSUE PRICE 100144 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 98644 TO YIELD 745 A MARGIN OF 95 BASIS POINTS OVER COMPARABLE BRITISH GILT GUARANTOR MUTUAL LIFE ASSURANCE CO OF CANADA FEES TWO SCOTTISH AMICABLE FINANCE PLC UK PARENT 100 MILLION OF 85 UNDATED BONDS AT ISSUE AND REOFFER PRICE 9809 VIA KLEINWORT BENSON BONDS YIELD MARGIN OF 190 BASIS POINTS OVER 2017 UK GILT GUARANTOR SCOTTISH AMICABLE LIFE ASSURANCE FROM JUNE 30 2018 AND EVERY FIVE YEARS THEREAFTER BONDS REDEEMABLE AT PAR OR EXCHANGABLE FOR NEW BONDS WITH IDENTICAL TERMS AT COUPON OF PREVAILING FIVEYEAR GILT PLUS 290 BASIS POINTS FEES 25 TELCEL INTERNATIONAL LTD VENEZUELA PARENT 50 MILLION OF 9 EUROBONDS DUE DEC 17 1996 AT ISSUE AND REOFFER PRICE PAR VIA CHASE INVESTMENT BANK LTD BONDS YIELD SPREAD OF 450 BASIS POINTS ABOVE COMPARABLE US TREASURY GUARANTOR TELCEL CELLULAR SA FEES 1125 PAYABLE SEMIANNUALLY 9312100001 931210 PEOPLE PATTERNS BY ALAN L OTTEN CHILDREN OF DIVORCE MAY PROVE LESS WILLING TO CARE FOR THEIR AGED PARENTS DOWN THE ROAD A NEW STUDY WARNS DEMOGRAPHERS DANIEL KLEPINGER OF THE BATTELLE CENTERS FOR PUBLIC HEALTH RESEARCH AND DIANE LYE OF THE UNIVERSITY OF WASHINGTON ANALYZED RELATIONSHIPS BETWEEN CHILDREN AND THEIR PARENTS INVOLVED WERE 6500 WHITE ADULTS OF WHOM ABOUT 15 HAD EXPERIENCED PARENTAL DIVORCE BEFORE THEY WERE 19 ALL RESPONDENTS WERE ASKED TO RATE THE QUALITY OF THEIR RELATIONSHIP WITH THEIR PARENTS ON A 1TO7 SCALE AND TO SAY HOW OFTEN THEY SAW OR HAD PHONE AND MAIL CONTACT WITH THEM OVERALL THOSE WHO HAD EXPERIENCED A PARENTAL DIVORCE IN CHILDHOOD OR ADOLESCENCE WERE 50 MORE LIKELY TO HAVE A POOR RELATIONSHIP WITH THEIR PARENTS AND ABOUT TWOTHIRDS MORE LIKELY TO HAVE LITTLE CONTACT WITH THEM THAN CHILDREN OF INTACT FAMILIES HAD WITH THEIRS THE LONGER THE CHILD HAD LIVED WITH BOTH PARENTS BEFORE THEIR DIVORCE THE LESS RELATIONSHIPS WITH THEM DETERIORATED WHEN HE OR SHE BECAME AN ADULT NOT TOO SURPRISINGLY THE RELATIONSHIP WITH THE NONCUSTODIAL PARENT WAS ALMOST INVARIABLY WORSE THAN THE RELATIONSHIP WITH THE CUSTODIAL PARENT PARTICULARLY IF THE NONCUSTODIAL PARENT WAS THE FATHER FOR EXAMPLE ADULT CHILDREN OF DIVORCE WERE 40 MORE LIKELY TO SAY THEY HAD A POOR RELATIONSHIP WITH THEIR CUSTODIAL PARENT THAN WERE CHILDREN IN INTACT FAMILIES AND 45 LESS LIKELY TO HAVE FREQUENT CONTACT WITH THEM FOR THE NONCUSTODIAL PARENTS HOWEVER THE FIGURES WERE 65 AND 75 RESPECTIVELY THE REMARRIAGE OF THE CUSTODIAL PARENT GENERALLY MADE THINGS BETTER FOR THAT PARENT AND WORSE FOR THE NONCUSTODIAL PARENT THE RESEARCHERS WARN THAT SINCE HELPING BEHAVIOR BETWEEN GENERATIONS DEPENDS CRITICALLY UPON THE FREQUENCY OF CONTACT AND THE CLOSENESS OF RELATIONSHIPS IT APPEARS LIKELY THAT THERE WILL BE FEWER EXCHANGES OF INTERGENERATIONAL HELP AND ASSISTANCE IN MARITALLY DISRUPTED FAMILIES THE OLDEST OLD BULK EVER LARGER IN THE NATION'S FUTURE LENGTHENING LIFE EXPECTANCY ESPECIALLY AT THE HIGHER AGES HAS INDUCED THE CENSUS BUREAU TO REVISE UPWARD ALMOST OVERNIGHT ITS PROJECTIONS OF THE NUMBER OF PEOPLE WHO WILL BE 85 OR OLDER IN THE COMING DECADES THE 1990 CENSUS LOGGED THE 85PLUS GROUP AT THREE MILLION A GAIN OF 35 FROM 1980 THEY WERE 12 OF THE TOTAL POPULATION IN 1990 AND ALREADY LABELED THE FASTESTGROWING AGE GROUP NEW CENSUS PROJECTIONS IN 1992 SAW THEM GROWING TO 65 MILLION BY 2020 AND TO 177 MILLION IN 2050 ABOUT 46 OF THE TOTAL POPULATION NOW JUST A YEAR LATER THE BUREAU IS PROJECTING THEIR NUMBER AT JUST UNDER SEVEN MILLION IN 2020 AND NEARLY 19 MILLION IN 2050 ABOUT 5 OF ALL AMERICANS MEDICAL ADVANCES AND CHANGING LIFESTYLES ARE KEEPING MORE PEOPLE LIVING THROUGH MIDLIFE AND ON INTO OLD AGE ACCORDING TO CENSUS SPECIALIST JENNIFER DAY IN 1990 THE AVERAGE 65YEAROLD HAD A FURTHER LIFE EXPECTANCY OF 172 YEARS SHE REPORTS TODAY'S 65YEAROLD CAN LOOK FORWARD TO ANOTHER 176 YEARS A CHANGE THAT LOOKS COMPARATIVELY SMALL BUT MS DAY SAYS IS A HUGE JUMP DEMOGRAPHICALLY THE ONE EXCEPTION TO THE UPWARD TREND IS FOR BLACKS WHOSE PROJECTED LIFE EXPECTANCY HAS BEEN LOWERED AS A RESULT OF INCREASING VIOLENCE AND AIDS AT YOUNGER AGES THE GAIN IN CENTENARIANS IS PARTICULARLY STRIKING IN 1990 THERE WERE ONLY ABOUT 37000 AMERICANS AGE 100 OR OLDER THE LATEST CENSUS ESTIMATE PROJECTS THEIR NUMBER TO ALMOST 300000 IN 2020 AND MORE THAN 12 MILLION BY 2050 THE CENSUS BUREAU INCIDENTALLY HAS JUST ISSUED 11 HANDY GRAPHFILLED BOOKLETS PULLING TOGETHER DATA FROM THE 1990 CENSUS AND OTHER OFFICIAL SOURCES ABOUT ONE OR ANOTHER GROUP OF AMERICANS OR SOME ASPECT OF US LIFE THIS WE THE AMERICANS SERIES HAS PAMPHLETS ON BLACKS HISPANICS ASIANS NATIVE AMERICANS PACIFIC ISLANDERS THE FOREIGNBORN WOMEN THE ELDERLY CHILDREN EDUCATION AND HOUSING I AM A PRETTY GOOD PERSON BUT A LOT OF YOU OUT THERE AREN'T AMERICANS HAVE A FAIRLY RIGHTEOUS VIEW OF THEIR OWN MORAL BEHAVIOR AND A CONSIDERABLY DARKER VIEW OF OTHER PEOPLE'S ACCORDING TO A SURVEY FOR FAMILY CIRCLE MAGAZINE IT POLLED A RANDOM SAMPLE OF 500 HEADSOFHOUSEHOLDS ON WHETHER THEY AND THEIR OWN FAMILIES FOLLOWED CERTAIN RULES OF BEHAVIOR ACTUALLY THE TEN COMMANDMENTS PUT INTO EVERYDAY LANGUAGE AND THEN ASKED WHETHER THEY THOUGHT MOST OTHER PEOPLE FOLLOWED THOSE RULES NINE OUT OF 10 SAID THEIR FAMILIES DIDN'T STEAL BUT ONLY SLIGHTLY MORE THAN HALF BELIEVED MOST OTHER PEOPLE DIDN'T SEVEN PERCENT ADMITTED NOT FOLLOWING THIS RULE THEMSELVES AND THE REST CHOSE NOT TO ANSWER THREE OUT OF FOUR SAID THEY DON'T ENVY ANOTHER PERSON'S BELONGINGS BUT ONLY ONE OUT OF FOUR WAS WILLING TO SAY THE SAME WAS TRUE OF MOST OTHER AMERICANS ALMOST NINE OF 10 MARRIED RESPONDENTS SAID THEY DIDN'T HAVE ADULTEROUS RELATIONSHIPS BUT ONLY HALF AS MANY THOUGHT MOST OTHER MARRIED MEN AND WOMEN DIDN'T EITHER A SURPRISING 64 CLAIMED THEY DIDN'T CURSE OR USE PROFANITY AND PROBABLY AN OVERGENEROUS 15 THOUGHT MOST OTHER AMERICANS DIDN'T WORKING MOTHERS' CHILDREN ARE TWICE AS LIKELY TO BE IN ALLDAY NURSERY SCHOOLS AS ARE CHILDREN OF NONWORKING MOTHERS THE CENSUS BUREAU REPORTS OFFICIALS SAY THIS SUGGESTS THAT MANY WORKING MOMS VIEW NURSERY SCHOOL AS A FORM OF DAY CARE MORE WOMEN ARE GIVING UP HIGHHEELED SHOES THE ROPER ORGANIZATION FINDS THE NUMBER WHO SAY THEY NEVER WEAR THEM OR WEAR THEM ONLY ONCE OR TWICE A YEAR HAS RISEN SHARPLY SINCE 1985 WHILE THE NUMBER WEARING THEM AT LEAST A COUPLE OF TIMES A WEEK HAS FALLEN EVEN MORE SHARPLY 9312100195 931117 LETTERS TO THE EDITOR FASCIST CORPORATISM WON'T TAKE ROOT HERE IN AN OCT 26 EDITORIAL PAGE ARTICLE CLINTON HEALTH PLAN SALUTES ITALY'S PAST THOMAS J DILORENZO STATES THAT THE CLINTON PLAN SHOULD BE REJECTED BECAUSE THE CLINTONS HAVE ADOPTED 1930S ERA CORPORATISM AN INVENTION OF MUSSOLINI'S FASCIST REGIME AS THE ORGANIZING PRINCIPLE IT SHOULD FIRST BE MADE CLEAR THAT ITALY NEVER HAD A COMPREHENSIVE HEALTH CARE SYSTEM AND THAT THEREFORE THE AUTHOR IS NOT REFERRING TO THE FAILURE OF SUCH A SYSTEM WHAT HE IS REFERRING TO IS THE SOCALLED CORPORATE STATE THIS WAS INDEED A FAILURE AS STATED BY THE AUTHOR AND THE ECONOMIST OF THE FASCIST PERIOD HE CITES MR FAUSTO PITIGLIANI WHOSE NAME OVERLAPS WITH MINE BY ABOUT TWOTHIRDS AND IS THEREFORE SOMETIMES CONFUSED WITH MINE THE CORPORATE SYSTEM WAS A FAILURE NOT BECAUSE IT WAS HEADED BY ALLPOWERFUL APPOINTEES OF MUSSOLINI BUT BECAUSE THE CENTRAL CONTROL WAS ACTUALLY RATHER LOOSE AND THE POWER IN THE INDIVIDUAL CORPORAZIONI THAT WERE DESIGNED TO PROMOTE THE NATIONAL INTEREST WAS IN FACT PLACED IN THE HANDS OF THE BIG CORPORATE INTERESTS IN THE SECTOR THE CORPORATION THUS SOON EVOLVED INTO SELFSERVING MACHINES WHICH REDUCED COMPETITION EFFECTIVELY PREVENTED NEW ENTRIES AND THUS LED TO GRADUAL STAGNATION IT IS APPARENT THAT THE PARALLEL BETWEEN THE CORPORATIVE SYSTEM AND THE CLINTONS' PROPOSAL WOULD BE VALID ONLY IF THE SEVEN MEN WERE TO CONSIST OF BIG DOCTORS BIG PHARMACEUTICAL COMPANIES OR BIG INSURERS WHICH OBVIOUSLY IS NOT THE CASE WHILE I DO NOT PRETEND TO HAVE YET ENOUGH OF AN UNDERSTANDING OF MR CLINTON'S AMBITIOUS BUT COMPLEX PLAN TO EXPRESS A FIRM OPINION FOR OR AGAINST I DO KNOW THAT TO REJECT IT ON MR DILORENZO'S GROUND IS PREPOSTEROUS TO BE SURE THE CORPORATE SYSTEM TOGETHER WITH MANY MORE REPRESSIVE FEATURES OF THE FASCIST REGIME WERE A MAJOR REASON FOR MY EXPATRIATION FROM ITALY BUT I DO NOT BELIEVE THAT CLINTON'S SEVEN MEN NO MATTER HOW POWERFUL COULD EVER PROVE THE UNDOING OF THE AMERICAN DEMOCRACY SEE RELATED LETTER LETTERS TO THE EDITOR SOCIALISM COLLAPSED OR DIDN'T YOU NOTICE WSJ DEC 10 1993 9311170085 YY93 MM12 9312100193 931116 PRICING HEALTH CARE THE COST OF MIRACLES BY HENRI A TERMEER AS PART OF HIS CONTINUING ATTACK ON THE PHARMACEUTICAL INDUSTRY PRESIDENT CLINTON HAS PROPOSED ESTABLISHING A FEDERAL COMMITTEE TO REVIEW THE PRICES OF BREAKTHROUGH DRUGS INCLUDING THOSE DEVELOPED BY THE BIOTECHNOLOGY INDUSTRY THE SENATE'S SPECIAL COMMITTEE ON AGING IS SCHEDULED TO HOLD HEARINGS TODAY ON THE SUBJECT ITS CHAIRMAN SEN DAVID PRYOR D ARK SAYS THE PURPOSE OF THE HEARINGS IS TO DETERMINE WHETHER MARKET FORCES ARE ADEQUATE TO RESTRAIN PRICES THE REAL DANGER HOWEVER IS NOT THAT THE PRICES OF NEW DRUGS WILL BE TOO HIGH BUT THAT GOVERNMENT CONTROLS WHETHER DIRECT OR INDIRECT WILL DISCOURAGE INVESTORS FROM TAKING RISKS ON BIOTECHNOLOGY COMPANIES THAT DEVELOP NEW DRUGS THE TRUTH IS THAT BREAKTHROUGH DRUGS ALREADY FACE AN ONEROUS REVIEW IT'S CALLED THE MARKETPLACE TODAY COMPANIES SUCH AS MINE THAT DEVELOP BREAKTHROUGH DRUGS CAN EXPECT TO HAVE MEANINGFUL MARKET EXCLUSIVITY FOR ONLY A FEW YEARS WHILE A COMPANY'S PATENT OR THE SPECIAL PROTECTION IT CAN CLAIM FOR ITS SOCALLED ORPHAN DRUGS MAY PRECLUDE COMPETITORS FROM SELLING AN IDENTICAL PRODUCT IT DOES NOT PRECLUDE OTHERS FROM DESIGNING AND SELLING SUBSTANTIALLY SIMILAR PRODUCTS MY OWN COMPANY'S PRODUCT CEREDASE IS AN EXAMPLE OF HOW MARKET FORCES WORK IN THE EARLY 1980S GENZYME WAS THE ONLY COMPANY WORKING ON A TREATMENT FOR GAUCHER'S DISEASE A RARE INHERITED ENZYME DEFICIENCY THAT CAUSES CRIPPLING AND SOMETIMES FATAL BONE AND ORGAN DETERIORATION THE CEO OF ANOTHER MAJOR BIOTECHNOLOGY COMPANY HAD CONSIDERED AND REJECTED THE IDEA OF DEVELOPING A TREATMENT FOR SUCH A RARE DISEASE BECAUSE HE COULD NOT IMAGINE HOW HIS COMPANY COULD GET AN ADEQUATE RETURN ON A PRODUCT INTENDED FOR A FEW THOUSAND PATIENTS SINCE GENZYME DEVELOPED CEREDASE HOWEVER OTHER COMPANIES HAVE JUMPED INTO GAUCHER'S DISEASE RESEARCH WE ARE NOW COMPETING WITH A COMPANY WORKING ON A VARIATION OF OUR DRUG AND TWO OTHERS ARE COMPETING WITH US TO DEVELOP GENETHERAPY APPROACHES THERE COULD BE AS MANY AS FOUR OR FIVE TREATMENTS FOR GAUCHER'S DISEASE ON THE MARKET WITHIN THE NEXT FOUR YEARS IF WE HADN'T TAKEN THE FIRST STEP THERE WOULD BE NO MARKET AND NO ADDITIONAL RESEARCH ON THE DISEASE MY POINT IS THIS WHEN AN INNOVATOR COMPANY PROVES THAT ITS PRODUCT WORKS AND THAT A SUFFICIENT MARKET EXISTS TO EARN A RETURN IT ENCOURAGES OTHER COMPANIES TO DEVELOP SIMILAR PRODUCTS THAT ENABLE THEM TO COMPETE FOR A SHARE OF THAT MARKET GIVEN THE BREATHTAKING PACE OF BIOTECHNOLOGY PROGRESS IT TAKES A RELATIVELY SHORT TIME FOR OTHER COMPANIES TO DEVELOP SUBSTANTIALLY SIMILAR DRUGS THESE WILL SUCCEED OF COURSE ONLY IF THEY OFFER EITHER PRICE OR THERAPEUTIC ADVANTAGES OVER THE INNOVATOR PRODUCT MARKET FORCES ARE THUS ALREADY CREATING PRICE COMPETITION AMONG PHARMACEUTICAL COMPANIES A NUMBER OF COMPANIES ARE IMPLEMENTING SUCH PROGRAMS AS CUSTOMER REBATES AND MONEYBACK GUARANTEES NO GOVERNMENT REGULATORY MECHANISM WAS NECESSARY TO INDUCE THIS RESULT IN THIS RESPECT IT IS IRONIC THAT THE SAME COMMENTATORS WHO COMPLAIN ABOUT PHARMACEUTICAL COMPANIES DEVELOPING ME TOO DRUGS NEW VERSIONS OF EXISTING DRUGS OFTEN FAIL TO RECOGNIZE THAT AT THE VERY LEAST THE INTRODUCTION OF SUCH DRUGS HELPS CONSTRAIN THE PRICES OF SIMILAR PRODUCTS ESPECIALLY UNDER A MANAGED COMPETITION SYSTEM IN WHICH INSURANCE COMPANIES PROVIDE PHYSICIANS WITH A GREATER INCENTIVE TO CONSIDER THE COSTEFFECTIVENESS OF THE PRODUCTS THEY PRESCRIBE CONGRESS SHOULD BE LESS CONCERNED ABOUT THE POSSIBILITY THAT A COMPANY MIGHT SOMEDAY CHARGE A HIGH PRICE FOR ITS AIDS VACCINE FOR THE TWO OR THREE YEARS BEFORE A COMPETING PRODUCT IS AVAILABLE THAN ABOUT THAT COMPANY'S ABILITY TO OBTAIN THE RESEARCHANDDEVELOPMENT FUNDS NEEDED TO DEVELOP THE VACCINE IN THE FIRST PLACE IT IS IMPERATIVE THAT CONGRESS AND THE ADMINISTRATION CONSIDER THE FOLLOWING QUESTION IF WE ALTER MARKET MECHANISMS BY IMPOSING PRICE CONTROLS ON BREAKTHROUGH DRUGS WILL WE CONTINUE TO GET BREAKTHROUGH DRUGS A BREAKTHROUGH DRUG COMMITTEE IS NOT NEEDED TO ENSURE THAT DRUGS ARE PRICED REASONABLY IF A DRUG'S BENEFIT IS NOT COMMENSURATE WITH ITS COST PHYSICIANS WON'T PRESCRIBE IT PARTICULARLY UNDER A MANAGED COMPETITION SYSTEM FROM THE PATIENT'S PERSPECTIVE A COMMITTEE'S REFUSING TO PROVIDE MEDICARE COVERAGE FOR EXCESSIVELY PRICED DRUGS WOULD SUBSTITUTE A BUREAUCRAT'S JUDGMENT FOR A PHYSICIAN'S IT WOULD ALSO RESULT IN SECONDCLASS MEDICAL CARE FOR AGING AMERICANS MEDICARE PATIENTS WOULD BE DENIED ACCESS TO DRUGS THAT ARE COVERED FOR THE PRIVATELY INSURED A BREAKTHROUGH DRUG COMMITTEE AS PROPOSED BY MR CLINTON IS NOT ONLY UNNECESSARY IT IS COUNTERPRODUCTIVE IT WILL DISCOURAGE INVESTORS FROM SEEING THE DEVELOPMENT OF BREAKTHROUGH DRUGS AS AN INVESTMENT CAPABLE OF REAPING RETURNS THAT ARE COMMENSURATE WITH THE RISKS ANOTHER CLINTON PROPOSAL WOULD ALLOW THE SECRETARY OF HEALTH AND HUMAN SERVICES TO NEGOTIATE PRICES FOR NEW DRUGS UNDER THREAT OF EXCLUDING THEM FROM MEDICARE TAKEN TOGETHER THESE PROPOSALS WOULD CONSTITUTE A PRICECONTROL SYSTEM THAT DISCRIMINATES AGAINST BIOTECHNOLOGY AND OTHER INNOVATING PHARMACEUTICAL COMPANIES BY THREATENING TO BLACKLIST THEIR PRODUCTS UNLESS GOVERNMENT BUREAUCRATS CONCUR WITH COMPANY PRICING DECISIONS THESE CLINTON PROPOSALS DO LITTLE MORE THAN CONSTRAIN OUR ABILITY TO DEVELOP BREAKTHROUGH MEDICINES IN THE FIRST EIGHT MONTHS OF THIS YEAR BIOTECHNOLOGY STOCKS DECLINED BY 30 AND THROUGH INITIAL PUBLIC OFFERINGS AND OTHER INVESTOR APPEALS COMPANIES WERE ABLE TO RAISE ONLY ABOUT 25 OF THE AMOUNT THEY SPENT DURING THIS PERIOD OBVIOUSLY THIS IS NOT SUSTAINABLE FOR AN INDUSTRY THAT LOST 36 BILLION LAST YEAR MY OWN COMPANY RAISED 100 MILLION TWO YEARS AGO TO FUND ITS RESEARCH AND DEVELOPMENT OF A TREATMENT FOR CYSTIC FIBROSIS A COMMON FATAL GENETIC DISEASE THAT KILLS THE AVERAGE PATIENT AT THE AGE OF 29 EVEN THOUGH WE RECENTLY PERFORMED THE FIRST SUCCESSFUL CLINICAL TRIAL OF A GENETHERAPY TREATMENT FOR CYSTIC FIBROSIS GENZYME WOULD BE HARDPRESSED TO RAISE HALF THAT AMOUNT IN TODAY'S INVESTMENT ENVIRONMENT YET WE WILL NEED TO MAKE A TOTAL INVESTMENT OF MORE THAN 400 MILLION TO BRING THIS PRODUCT TO MARKET IF WE SUCCEED WE WILL BE ABLE TO TREAT SUCCESSFULLY 30000 AMERICANS WHO IN THE SEVERE PHASE OF THE DISEASE NOW RECEIVE ANNUAL MEDICAL CARE COSTING UP TO 50000 PROPOSALS THAT DISCOURAGE BREAKTHROUGH DRUG DEVELOPMENT MAY BE SMART POLITICS BUT THEY ARE BAD MEDICINE AND AN INEFFECTIVE MEANS OF COST CONTROL JAPAN WHICH HAS A SINGLEPAYER SYSTEM IN WHICH THE GOVERNMENT SETS REIMBURSEMENT RATES FOR ALL HEALTH CARE PRODUCTS AND SERVICES USES GOVERNMENT REGULATION OF DRUG PRICES AS A FORM OF INDUSTRIAL POLICY TO REWARD BREAKTHROUGH DRUG DEVELOPMENT WITH A PRICING PREMIUM IT IS TYPICAL FOR THE JAPANESE GOVERNMENT TO SET PRICES FOR BIOTECHNOLOGY DRUGS AND OTHER BREAKTHROUGH PHARMACEUTICAL PRODUCTS AT TWO TO THREE TIMES US MARKET PRICES REFLECTING SUCH A PREMIUM ON THE OTHER HAND THE JAPANESE GOVERNMENT CUTS THE PRICES OF OLDER PHARMACEUTICALS ANNUALLY ACCORDING TO A FORMULA THE MESSAGE TO JAPANESE INDUSTRY IS CLEAR INNOVATE OR DIE SEN PRYOR AND THE WHITE HOUSE PROPOSE PRECISELY THE OPPOSITE THAT BREAKTHROUGH DRUGS BE SUBJECT TO GOVERNMENT POLICIES AIMED AT PREVENTING EXCESSIVE PRICES WHILE OLD DRUGS CONTINUE TO ESCALATE IN PRICE AT THE GENERAL INFLATION RATE IN CITING JAPANESE POLICY I DO NOT INTEND TO SUGGEST THAT THE US SHOULD ADOPT THAT SYSTEM TO THE CONTRARY I THINK THAT THE RELATIVELY HIGHER PRICES THAT THE JAPANESE GOVERNMENT WILLINGLY PAYS FOR BREAKTHROUGH DRUGS ARE COMPELLING EVIDENCE THAT AMERICAN COMPANIES ARE NOT ABUSING THE PRICING FREEDOM THEY ENJOY IN A SYSTEM LIKE OURS FINALLY LET ME NOTE THAT THE JAPANESE GOVERNMENT HAS TARGETED BIOTECHNOLOGY AS AN INDUSTRY JAPAN WANTS TO DOMINATE BY THE YEAR 2000 THE US WILL ONLY FORFEIT ITS LEADERSHIP POSITION TO JAPAN IF ITS GOVERNMENT ENCOURAGES THE DEVELOPMENT OF BREAKTHROUGH DRUGS AND OUR OWN DOES NOT THE JAPANESE THREAT TO OUR INDUSTRY IS NOT NEARLY AS GREAT AS THE THREAT FROM OUR OWN GOVERNMENT MR TERMEER IS CEO OF GENZYME CORP IN CAMBRIDGE MASS SEE RELATED LETTER LETTERS TO THE EDITOR GOVERNMENT ANGEL AIDED MIRACLE MAKER WSJ DEC 10 1993 9311160185 YY93 MM12 9312100152 931124 LETTERS TO THE EDITOR SQUEEZE THE RICH CLOSE THE LOOPHOLES YOUR NOV 2 EDITORIAL FAIR SHARERS WAS INTELLECTUALLY DISHONEST FEW ECONOMIC THEORIES ARE SO THOROUGHLY DISCREDITED AS YOUR ARGUMENT THAT HIGH TAX RATES FOR THE RICH WILL INHIBIT ECONOMIC GROWTH AND LEAD TO INCREASED TAXES ON THE MIDDLE CLASS ALLOW ME TO LIST JUST A FEW OF THE MORE OBVIOUS PROBLEMS WITH YOUR THEORY THE TERM FAIR SHARE WAS USED REPEATEDLY DURING CLINTON'S CAMPAIGN AND HAS BEEN USED SINCE AS A MEANS OF VILIFYING THOSE AMERICANS WHO ENJOY FINANCIAL SUCCESS DUE MORE OFTEN THAN NOT TO THEIR INGENUITY SACRIFICE AND HARD WORK MR CLINTON HAD PROMOTED THE NOTION THAT THE FINANCIALLY SUCCESSFUL ARE ESCAPING THEIR FISCAL RESPONSIBILITY TO THEIR COUNTRY BY NOT PAYING TAXES COMMENSURATE WITH THE LEVEL OF INCOME THEY ENJOY I LIKE MANY OTHERS FIND SUCH CLAIMS LACKING CREDIBILITY AND THE DATA YOU PRESENT GO A LONG WAY IN DISPELLING WHAT MANY INFORMED PEOPLE BELIEVE IS A MYTH YOUR EDITORIAL STATES THAT GOOD ACCOUNTANTS AND TAX LAWYERS WILL ENABLE THE VERY RICH TO AVOID THE FULL BLOW OF HIGHER TAXES HOWEVER A JUNE 18 JOURNAL ARTICLE SEARCHING FOR WAYS TO SOFTEN BLOW GOOD LUCK IS A MORE ACCURATE SUMMARY OF THE SITUATION IN RECENT YEARS THE TAX NOOSE HAS BECOME TIGHTER AND TIGHTER WITH LESS AND LESS ROOM FOR LAWFUL MANIPULATION IRRESPONSIBLE STATEMENTS SUCH AS YOURS RAISE FALSE HOPES FOR INSTANCE US CITIZENS ARE TAXABLE ON INCOME FROM WHATEVER SOURCE SO FOREIGN INVESTMENTS AREN'T A PANACEA FOR BEATING US INCOME TAXES MOST OF THE VERY RICH KNOW FULL WELL THAT THE SECRET TO CONTINUED WEALTH IS TO MAXIMIZE THEIR AFTERTAX INCOME ONE IS BETTER OFF TO WORK AND/OR INVEST SO AS TO PAY 40 IN TAXES ON 11 MILLION DOLLARS OF INCOME THAN TO SLACK OFF AND PAY 31 ON 130000 OF INCOME SEE RELATED LETTERS LETTERS TO THE EDITOR WANTING EQUALITY IN THE WORST WAY WSJ DEC 10 1993 9311240031 YY93 MM12 9312100124 931026 CLINTON HEALTH PLAN SALUTES ITALY'S PAST BY THOMAS J DILORENZO PRESIDENT CLINTON HAS STATED THAT HIS HEALTH CARE REFORM PLAN IS BASED PRIMARILY ON GERMANY'S SYSTEM BUT THE PROPOSAL ALSO HAS ROOTS IN THE INDUSTRIAL POLICIES OF ANOTHER EUROPEAN COUNTRY ITALY THE KEY COMPONENT OF THE PRESIDENT'S PLAN IS A NATIONAL HEALTH BOARD OF SEVEN PRESIDENTIAL APPOINTEES THIS BOARD WILL OVERSEE ALL THE ACTIVITIES OF GOVERNMENTCREATED AND REGULATED REGIONAL HEALTH CARE ALLIANCES WHICH WILL SUPPOSEDLY DO THE CONSUMERS' BIDDING WITH HEALTH INSURANCE PROVIDERS THE NATIONAL HEALTH BOARD ITSELF WILL HAVE THE POWER TO SET HEALTH CARE BUDGETS AND PRICES FOR EACH STATE ALLIANCE COMPANIES WITH MORE THAN 5000 EMPLOYEES COULD FORM THEIR OWN CORPORATE ALLIANCES BUT WOULD ALSO BE STRICTLY REGULATED BY THE BOARD THERE IS VIRTUALLY NO ROLE FOR INDIVIDUAL CONSUMERS DOCTORS INSURERS OR EMPLOYERS IN THE PLAN SOME YEARS AGO THE ITALIAN GOVERNMENT ORGANIZED MANY OF THAT COUNTRY'S INDUSTRIES ON JUST THIS MODEL FOR EACH INDUSTRY OR INDUSTRY GROUP THERE WAS A LEGALLY RECOGNIZED ALLIANCE CALLED A CONFEDERATION AS IN THE CLINTON HEALTH CARE PLAN THE PURPOSE OF THESE GROUPINGS ACCORDING TO ECONOMIST AND GOVERNMENTAL ADVISER FAUSTO PITIGLIANI WAS TO ALLOW THE CENTRAL GOVERNMENT TO ORCHESTRATE COLLABORATION BETWEEN THE VARIOUS CATEGORIES OF PRODUCERS IN EACH BRANCH OF PRODUCTIVE ACTIVITY ONLY LEGALLY RECOGNIZED COLLABORATION WAS PERMITTED JUST AS ONLY LEGALLY RECOGNIZED REGIONAL HEALTH CARE AND CORPORATE ALLIANCES CAN PURCHASE HEALTH INSURANCE UNDER THE CLINTON PLAN THE ITALIAN CONFEDERATIONS WERE FREE TO PURSUE THEIR OWN GOALS AS THE PRESIDENT'S HEALTH CARE ALLIANCES WOULD OSTENSIBLY BE BUT IN ITALY ACCORDING TO MR PITIGLIANI THE PRINCIPLE OF PRIVATE INITIATIVE COULD BE USEFUL ONLY IN THE SERVICE OF THE NATIONAL INTEREST AS DEFINED BY A NATIONAL COUNCIL OF CORPORATIONS THIS NATIONAL COUNCIL SERVED AS A FEDERAL OVERSEER OF ALL THE REGIONAL CONFEDERATIONS JUST AS THE PRESIDENT'S NATIONAL HEALTH BOARD WILL OVERSEE THE REGIONAL HEALTH CARE ALLIANCES THE PURPOSE OF THE ITALIAN ARRANGEMENT ACCORDING TO MR PITIGLIANI WAS TO ENSURE GOVERNMENT CONTROL OVER THE RELATIONS THAT EMPLOYERS EMPLOYEES AND CONSUMERS HAD WITH ONE ANOTHER THE NATIONAL COUNCIL OF CORPORATIONS COULD SET PRICES AND BUDGETS AND ISSUE REGULATIONSPOWERS MR CLINTON PROPOSES GIVING TO HIS NATIONAL HEALTH BOARD THE NATIONAL HEALTH BOARD WOULD HAVE SWEEPING REGULATORY POWERS THE PUBLISHED VERSION OF THE PLAN STIPULATES THAT IF A STATE ALLIANCE DOES NOT MEET ALL THE BOARD'S REGULATORY REQUIREMENTS THE SECRETARY OF THE TREASURY COULD IMPOSE A PAYROLL TAX ON EVERY EMPLOYER IN THE STATE TO PAY FOR A FEDERALLY DESIGNED HEALTH INSURANCE PLAN ITALY'S SYSTEM WAS JUSTIFIED ON THE GROUND THAT SELFISH INTERESTS HAD LED ITALIAN INDUSTRY IN DIRECTIONS NOT IN THE SERVICE OF THE NATIONAL INTEREST AS MR PITIGLIANI EXPLAINED THE ITALIAN NATIONAL COUNCIL OF CORPORATIONS WAS EMPOWERED TO REGULATE INDUSTRY IN A MANNER CONCORDANT WITH THE INTERESTS OF THE NATIONAL ECONOMY AND TO CREATE A SPIRIT OF NATIONAL COLLABORATION IF THIS RHETORIC SOUNDS FAMILIAR IT IS PROBABLY BECAUSE OF THE WAY THE CLINTONS HAVE DEMONIZED THE PHARMACEUTICAL INDUSTRY DOCTORS AND OTHER PROFIT SEEKERS ITALY'S GOVERNMENT PLANNERS BELIEVED THAT REGIONAL INDUSTRY ALLIANCES OVERSEEN BY A NATIONAL PLANNING BOARD WOULD REINVENT GOVERNMENT IN A WAY THAT WOULD RENDER IT VIGOROUS CAREFUL AND EFFICIENT IN THE WORDS OF ONE POLITICAL LEADER REMINISCENT OF THE PRESIDENT'S PROMISE TO CUT MORE THAN 200 BILLION IN WASTE FROM THE SYSTEM WITH HIS PLAN HOW WELL HAS THE ITALIAN SYSTEM FARED AND DOES IT PROVIDE ANY LESSONS FOR THE US WELL THE ITALIAN SYSTEM WAS A BIG DISAPPOINTMENT FROM THE BEGINNING INSTEAD OF FORCING BUSINESSES TO BE MORE RESPONSIVE TO THE NATIONAL INTEREST THE GOVERNMENT TAXPAYERS ENDED UP PAYING FOR THE BLUNDERS OF PRIVATE ENTERPRISE ACCORDING TO ITALIAN SOCIAL CRITIC GAETANO SALVEMINI AN ARTICLE IN THE ECONOMIST CHARACTERIZED THE SYSTEM AS THE ESTABLISHMENT OF A NEW AND COSTLY BUREAUCRACY FROM WHICH INDUSTRIALISTS PUT INTO PRACTICE THE WORST KIND OF MONOPOLISTIC PRACTICES AT THE EXPENSE OF THE LITTLE FELLOW WHO IS SQUEEZED OUT IN THE PROCESS MOST PEOPLE EQUATE FASCISM ONLY WITH ITS RACISM AND ANTISEMITISM BUT THERE WAS ALSO AN ECONOMIC PHILOSOPHY KNOWN AS CORPORATISM THAT WAS PART OF ITS IDEOLOGY THE CLINTONS HAVE ADOPTED 1930SERA CORPORATISM AS THE ORGANIZING PRINCIPLE OF THEIR HEALTH REFORM CONTRARY TO THE HOARY SLOGANS ABOUT MUSSOLINI MAKING THE TRAINS RUN ON TIME THE TRUTH IS THAT CORPORATISM WAS AN UNMITIGATED ECONOMIC DISASTER FOR THE ITALIAN PEOPLE LET'S HOPE THAT THIS FAILURE WILL NOT BE REPEATED IN THE US MR DILORENZO AN ADJUNCT SCHOLAR AT THE CATO INSTITUTE IS A PROFESSOR OF ECONOMICS AT LOYOLA COLLEGE IN BALTIMORE SEE RELATED LETTER LETTERS TO THE EDITOR FASCIST CORPORATISM WON'T TAKE ROOT HERE WSJ NOV 17 1993 SEE RELATED LETTER LETTERS TO THE EDITOR SOCIALISM COLLAPSED OR DIDN'T YOU NOTICE WSJ DEC 10 1993 9310260070 9311170090 YY93 MM11 YY93 MM12 9312090175 931209 SCRIPPS HOWARD COMPLETES SALE CINCINNATI SCRIPPS HOWARD BROADCASTING CO SAID IT COMPLETED THE SALE OF ITS PORTLAND ORE RADIO STATIONS KUPL AM AND FM TO SAN FRANCISCOBASED BAYCOM OREGON LP FOR 23 MILLION 9312090174 931209 TECHNOLOGY & SCIENCE CRITICAL HUBBLE REPAIRS ARE FINISHED BUT COMPLETE SUCCESS ISN'T DECLARED YET BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN RARE GOOD NEWS FOR NASA ASTRONAUTS COMPLETED THE MOST CRITICAL REPAIRS TO THE HUBBLE SPACE TELESCOPE AND BARRING HITCHES PAVED THE WAY FOR ASTRONOMERS TO PEER DEEPER INTO THE UNIVERSE THAN EVER BEFORE OFFICIALS OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WERE CAREFUL TO AVOID DECLARING A COMPLETE SUCCESS YET THE CREW OF THE ORBITING SPACE SHUTTLE ENDEAVOUR STILL FACES A FEW TASKS BEFORE RELEASING THE CAPTURED TELESCOPE THEY HAVE BEEN REPAIRING ALL WEEK MOREOVER SCIENTISTS ON EARTH WON'T KNOW FOR SEVEN TO 13 WEEKS WHETHER THE NEWLY INSTALLED CORRECTIVE LENSES WILL FIX THE NEARSIGHTEDNESS THAT HAS PLAGUED THE BUSSIZED TELESCOPE SINCE IT WAS LAUNCHED IN APRIL 1990 STILL THE MISSION ALREADY HAS ACHIEVED ITS MAIN GOALS OF MAKING REPAIRS THAT WERE VITAL TO KEEP THE TELESCOPE OPERATING AND RESTORE ITS VISION TO WITHIN 90 OF ORIGINAL PROMISES ON A SCALE OF ONE TO 10 IN WHICH 10 IS THE HIGHEST ASTRONOMERS ARE AT 11 SAID JOHN BAHCALL OF THE INSTITUTE FOR ADVANCED STUDY IN NEW JERSEY AND ONE OF THE PRINCIPAL SCIENTISTS TO DO HUBBLE WORK ASSUMING THAT NASA HAS INSTALLED THE RIGHT PRESCRIPTIONS TO CORRECT FOR THE HUBBLE'S MISSHAPEN PRIMARY MIRROR ASTRONOMERS ARE COMPETING NOW FOR THE TELESCOPE'S PRECIOUS TIME SOME PROJECTS THAT WERE AMONG THE ORIGINAL JUSTIFICATIONS FOR BUILDING THE 15 BILLION HUBBLE LIKE ZOOMING SOME 14 BILLION LIGHT YEARS INTO SPACE TO TRY TO GAUGE THE SIZE AND AGE OF THE UNIVERSE HAVE BEEN PUT OFF FOR 3 1/2 YEARS BECAUSE OF THE DEFICIENCY DR BAHCALL IS COUNTING ON USING THE HUBBLE IN MARCH TO TRY TO UNLOCK THE MYSTERY OF QUASARS THE BRIGHTESTKNOWN OBJECTS IN THE UNIVERSE THEY APPEAR AS FUZZY LIGHTS IN GROUNDBASED TELESCOPES HAROLD WEAVER OF THE SPACE TELESCOPE SCIENCE INSTITUTE IN BALTIMORE IS HOPING TO POINT THE HUBBLE AT A COMET NOW STREAKING TOWARD A JULY COLLISION WITH JUPITER THE IMPACT THE FIRST SCIENTISTS WILL EVER BE ABLE TO MONITOR IS EXPECTED TO BE AS STRONG AS THE ASTEROID OR COMET THAT CRASHED TO EARTH 65 MILLION YEARS AGO POSSIBLY WIPING OUT THE DINOSAURS THE HUBBLE ALREADY HAS RETURNED GRAINY RED PICTURES OF THE COMET BUT DR WEAVER SAID THE TELESCOPE'S NEW OPTICS WOULD ENABLE ASTRONOMERS TO SEE THE COMET TWO TO THREE TIMES MORE CLEARLY IN TURN THEY SHOULD BE ABLE MORE ACCURATELY TO JUDGE ITS SIZE OTHER EXPERIMENTS DELAYED BY THE HUBBLE'S OPTICAL PROBLEMS WOULD EXPLORE THE EXPANSION OF THE UNIVERSE AND SEEK EVIDENCE OF BLACK HOLES IT'S SOMETHING WE'VE DREAMED ABOUT FOR 50 YEARS AND GOT VERY CLOSE TO BEFORE WHEN THE HUBBLE WAS LAUNCHED AND APPEAR TO BE CLOSING IN ON AGAIN SAID DR BAHCALL EVEN THOUGH ENDEAVOUR'S WORK ISN'T YET COMPLETE EXPECTATIONS ARE RIDING HIGH BECAUSE ITS ASTRONAUTS HAVE SMOOTHLY TACKLED THE SHUTTLE PROGRAM'S MOST DAUNTING MISSION EVER SO FAR THEY'RE HITTING HOME RUNS SAID PHYSICIST ROBERT PARK A SPOKESMAN FOR THE AMERICAN PHYSICAL SOCIETY IT HELPS NASA A LOT THEY REALLY PUT THEIR REPUTATION ON THE LINE WITH THIS IN AN UNPRECEDENTED FOUR DAYS OF SPACE WALKS SO FAR ALTERNATING PAIRS OF ASTRONAUTS FLOATING OUTSIDE THE CAPSULE 360 MILES ABOVE EARTH SUCCESSFULLY INSTALLED A NEW 600POUND WIDE FIELD AND PLANETARY CAMERA THAT SENDS BACK MOST OF THE PHOTOGRAPHS FROM THE HUBBLE AND THEN A TELEPHONEBOOTHSIZED BOX WITH CORRECTIVE MIRRORS DESIGNED TO ENHANCE A CAMERA THAT ZOOMS IN ON FAINT OBJECTS AND SCIENTIFIC INSTRUMENTS THAT BREAK STARLIGHT INTO SPECTRUMS THE CREW IN A DRESS REHEARSAL FOR THE KIND OF WORK THAT WOULD BE NEEDED TO BUILD AN ORBITING SPACE STATION LATER THIS DECADE ALSO REPLACED THREE BROKEN GYROSCOPES THAT HELP TO POINT THE TELESCOPE AND TWO SOLAR PANELS THAT SUPPLY ITS ELECTRICITY ADDITIONAL BUT LESS CRUCIAL MAINTENANCE INCLUDED ADDING NEW COMPUTER MEMORY AND NEW MAGNETOMETERS THAT KEEP THE HUBBLE CORRECTLY POSITIONED THE FINAL SPACE WALK SCHEDULED FOR EARLY TODAY WOULD MAKE TWO ELECTRICAL REPAIRS THE FINAL ANXIOUS MOMENTS FOR NASA'S GROUND CONTROLLERS WILL BE WHEN THE ENDEAVOUR CREW ATTEMPTS TO UNFURL THE NEW SOLAR PANELS WITHOUT WHICH THE TELESCOPE WOULD BE LIFELESS AND WHEN IT RELEASES THE TELESCOPE FROM THE SHUTTLE'S ROBOTIC ARM TOMORROW OR SATURDAY 9312090173 931209 TECHNOLOGY & SCIENCE SEGA TO RATE GAMES BUT NINTENDO SAYS LABEL ISN'T ENOUGH HARDWARE LEADER WON'T JOIN VIDEOGAME FIRMS' EFFORT AS REGULATION THREATENS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL LIKE SONIC THE HEDGEHOG FLEEING HIS ASSAILANTS THE VIDEOGAME INDUSTRY IS TRYING TO STAY ONE STEP AHEAD OF CONGRESSIONAL REGULATORS BY ANNOUNCING A PLAN TO SELFPOLICE VIOLENCE AND SEX IN THE 6 BILLION INDUSTRY HOWEVER MISSING FROM THE ROSTER OF COALITION MEMBERS SO FAR IS NINTENDO OF AMERICA THE LEADER AMONG VIDEOGAME HARDWARE MANUFACTURERS IT ISN'T KNOWN HOW MUCH NINTENDO'S ABSENCE COULD HAMPER INDUSTRY EFFORTS AT SELFREGULATION MEANWHILE SEGA OF AMERICA TODAY WILL ANNOUNCE A BROAD INDUSTRY COALITION TO SET GUIDELINES FOR RATING VIDEO GAMES AND INFORMING PARENTS ABOUT ADULT CONTENT JOINING SEGA ARE ATARI CORP SUNNYVALE CALIF AND 3DO CO REDWOOD CITY CALIF WE'VE ALSO BROUGHT ABOARD SOFTWARE PUBLISHERS REPRESENTING 90 OF GAMES CURRENTLY AVAILABLE AS WELL AS RETAILERS REPRESENTING 60 OF ALL STORES SELLING VIDEO GAMES IN THE US SAID WILLIAM WHITE VICE PRESIDENT FOR MARKETING FOR SEGA A UNIT OF JAPAN'S SEGA ENTERPRISES LTD IN REDMOND WASH A SPOKESMAN FOR NINTENDO SAID SEGA'S PROPOSED GUIDELINES DON'T GO FAR ENOUGH WE AT NINTENDO ARE CALLING FOR MORE THAN A NATIONAL RATING SYSTEM WE'RE URGING THE INDUSTRY TO EXAMINE THEIR GAME CONTENT RATINGS ALONE DON'T ADDRESS THE ISSUE OF VIOLENCE IT JUST PUTS A BOX AROUND IT SAID PETER MAIN VICE PRESIDENT OF MARKETING TRADITIONALLY THE US UNIT OF JAPAN'S NINTENDO CO HAS HELD ITSELF APART CITING ITS PRODUCTS' FAMILY ORIENTATION SEGA'S NEWS CONFERENCE SLATED FOR 10 AM IN WASHINGTON DC TODAY WILL PRECEDE SUBCOMMITTEE HEARINGS LED BY SEN JOSEPH LIEBERMAN D CONN ON CURBING VIOLENCE AND SEXUALITY IN THE VIDEOGAME INDUSTRY UNDER DRAFT LEGISLATION COSPONSORED BY SEN LIEBERMAN AND SEN HERB KOHL D WISC A PANEL COMPRISED OF INDUSTRY MEMBERS AND CHILD ADVOCATES WOULD BE GIVEN A YEAR TO DRAW UP A RATING PLAN IF IT FAILED THE GOVERNMENT WOULD STEP IN THAT LEGISLATION IS SLATED TO BE INTRODUCED IN JANUARY BUT BURGEONING LISTS OF GAMES MAY SEE A CERTAIN MARKET CACHET IN AN ADULT RATING TO JUDGE FROM BLOODY TITLES LIKE MORTAL KOMBAT MADE BY ACCLAIM ENTERTAINMENT INC OF OYSTER BAY NY THERE'S ALSO THE PROVOCATIVE NIGHT TRAP SEGA OF AMERICA'S CDROM GAME IN WHICH THE PLAYER TRIES TO SAVE NIGHTIECLAD SORORITY WOMEN FROM A BAND OF BLOODTHIRSTY GHOULS WE'RE GOING TO HOLD THE INDUSTRY'S FEET TO THE FIRE SAID AN AIDE TO SEN LIEBERMAN IN AN INTERVIEW WE'RE VERY CONCERNED THAT A RATING SYSTEM NOT BE PERVERTED AND USED AS A MARKETING PLOY 9312090172 931209 WHO'S NEWS KNIGHTRIDDER INC KNIGHTRIDDER INC MIAMI JAY HARRIS 45 YEARS OLD WAS NAMED BY THIS MEDIA CONGLOMERATE TO BE PUBLISHER OF ITS SAN JOSE MERCURY NEWS EFFECTIVE FEB 1 FORMERLY VICE PRESIDENT OF OPERATIONS AT KNIGHTRIDDER MR HARRIS SUCCEEDS LARRY JINKS WHO WILL BE 65 IN JANUARY AND IS RETIRING 9312090171 931209 INTERNATIONAL BRAZILIAN CITIES' JOBLESS RATE RIO DE JANEIRO UNEMPLOYMENT IN BRAZIL'S MAJOR METROPOLITAN AREAS DECLINED TO 49 IN OCTOBER FROM 51 IN THE PREVIOUS MONTH ACCORDING TO A GOVERNMENT INSTITUTE 9312090170 931209 FINANCING BUSINESS CONSOLIDATED NATURAL GAS CO CONSOLIDATED NATURAL GAS CO PITTSBURGH THIS PRODUCER TRANSPORTER AND DISTRIBUTOR OF NATURAL GAS SAID IT SOLD 150 MILLION OF 6 5/8 DEBENTURES DUE DECEMBER 2013 THEY ARE NONCALLABLE THE COMPANY SAID IT WILL USE PROCEEDS MAINLY TO REDUCE SHORTTERM DEBT INCURRED TO REDEEM HIGHERCOST DEBENTURES THIS YEAR THE OFFERING WAS UNDERWRITTEN BY GOLDMAN SACHS & CO 9312090169 931209 WHO'S NEWS MARGARETTEN FINANCIAL CORP MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ LLOYD R KUSHNER 38 YEARS OLD WAS NAMED FIRST VICE PRESIDENT CHIEF UNDERWRITER SUCCEEDING WERNER JASINSKI WHO WAS NAMED FIRST VICE PRESIDENT QUALITY MANAGEMENT MR KUSHNER WAS PREVIOUSLY UNDERWRITING DIVISION MANAGER FOR THIS RESIDENTIAL MORTGAGE BANKING COMPANY 9312090168 931209 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT WILLIAM C BROOKS WAS NAMED VICE PRESIDENT TO HEAD AN EXPANDED COMMUNITY AND URBAN AFFAIRS DEPARTMENT EFFECTIVE JAN 1 IN THE NEWLY CREATED POSITION MR BROOKS 60 YEARS OLD WILL OVERSEE OPERATIONS OF THE GM FOUNDATION COMMUNITY RELATIONS AND MINORITY RELATIONS HE HAD SERVED AS GROUP DIRECTOR OF PERSONNEL FOR THE AUTO MAKER'S NORTH AMERICAN TRUCK PLATFORM 9312090167 931209 DIVIDEND NEWS PENN VIRGINIA CORP PENN VIRGINIA CORP PHILADELPHIA DIRECTORS DECLARED A ONETIME DIVIDEND OF 1 A SHARE PAYABLE DEC 31 TO STOCK OF RECORD DEC 17 THE NATURAL RESOURCE COMPANY SAID THE SPECIAL DIVIDEND REFLECTED THE SALE OF THE COMPANY'S LIME AND LIMESTONE OPERATIONS IN OCTOBER DIRECTORS ALSO AUTHORIZED REPURCHASE OF AS MANY AS 5 OF THE COMPANY'S SHARES 9312090166 931209 TURNER UNIT WINS IRS CONTRACT NEW YORK TURNER CORP SAID ITS TURNER CONSTRUCTION CO UNIT WILL SERVE AS GENERAL CONTRACTOR FOR THE 176 MILLION INTERNAL REVENUE SERVICE NATIONAL OFFICE TO BE BUILT IN NEW CARROLLTON MD CONSTRUCTION OF THE 12 MILLION SQUAREFOOT BUILDING WILL BE STARTED IN MID1994 BPT PROPERTIES LP WASHINGTON IS THE DEVELOPER RESPONSIBLE FOR THE PROJECT 9312090165 931209 LEGAL BEAT TWO BIG DEALS SPUR CONCERNS ABOUT ANTITRUST BY EDWARD FELSENTHAL AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL JUSTICE DEPARTMENT OFFICIALS ARE CONSIDERING SEEKING SIGNIFICANT CONCESSIONS IN TWO BIG TELECOMMUNICATIONS DEALS IN RETURN FOR THE DEPARTMENT'S ANTITRUST CLEARANCE PEOPLE CLOSE TO THE DEPARTMENT'S DISCUSSIONS SAY IT IS CURRENTLY WEIGHING SPECIFIC RESTRICTIONS SUCH AS FORCING ASSET SALES AND RESTRUCTURINGS ON BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC AND ON AMERICAN TELEPHONE & TELEGRAPH CO'S PLANNED PURCHASE OF MCCAW CELLULAR COMMUNICATIONS CO JUSTICE ISN'T EXPECTED TO TRY TO BLOCK THE DEALS IN PART BECAUSE COURTS HAVE SHOWN LITTLE INCLINATION TO SCUTTLE SUCH UNIONS IN RECENT YEARS BUT THE COMPANIES MIGHT BE WILLING TO MAKE SOME CONCESSIONS THAT WOULD AVOID A PROTRACTED LEGAL FIGHT WHILE LETTING THE ADMINISTRATION WHICH HAS TALKED TOUGH ON ANTITRUST CLAIM A POLITICAL VICTORY IN THE BELL ATLANTICTCI CASE THE DEPARTMENT IS CONSIDERING TRYING TO GET TCI TO SELL SOME OF ITS CABLEPROGRAMMING ASSETS ACCORDING TO LAWYERS INSIDE AND OUTSIDE THE GOVERNMENT WHO ARE FAMILIAR WITH THE DISCUSSIONS OFFICIALS ARE WORRIED THAT THE MERGED COMPANY WILL BE ABLE TO MANIPULATE THE MARKET FOR TELEVISION PROGRAMS BECAUSE IT WILL HAVE ACCESS TO SO MANY HOMES THE OFFICIALS BELIEVE THE COMPANY MAY HAVE LESS INCENTIVE TO SQUEEZE OUT OTHER PROGRAMMERS IF IT DUMPS AT LEAST SOME OF TCI'S VIDEO HOLDINGS WHICH INCLUDE INTERESTS IN THE DISCOVERY CHANNEL AND TURNER BROADCASTING SYSTEM INC THAT WAY THE COMPANY WOULD HAVE TO DEPEND ON OTHERS TO PROVIDE IT WITH PROGRAMS THE JUSTICE DEPARTMENT WANTS TO BE ABLE TO CLAIM A VICTORY ON THIS DEAL SAYS GARRET RASMUSSEN AN ANTITRUST SPECIALIST WITH THE LAW FIRM PATTON BOGGS & BLOW WHO ISN'T INVOLVED IN THE DEAL THEY'RE GOING TO GET A POUND OF FLESH IN THE AT&TMCCAW CASE THE DEPARTMENT IS APPARENTLY FOCUSING ITS ATTENTION ON THE FACT THAT AT&T MAKES EQUIPMENT SUCH AS RADIO TOWERS THAT SOME OF MCCAW'S COMPETITORS INCLUDING SEVERAL BABY BELL REGIONAL PHONE COMPANIES USE IN THEIR CELLULARPHONE OPERATIONS THE DEPARTMENT IS STILL FAR FROM A FINAL DECISION ABOUT WHAT TO DO BUT OFFICIALS ARE CONCERNED THAT THE MERGER WOULD GIVE AT&T AN INCENTIVE TO CHARGE MCCAW'S COMPETITORS MORE WHILE PROVIDING POOR SERVICE SEVERAL OF THE BABY BELLS HAVE ARGUED IN FCC FILINGS AND IN PRIVATE CONVERSATIONS WITH DEPARTMENT OFFICIALS THAT THE GOVERNMENT SHOULD PUT CONDITIONS ON THE DEAL SUCH AS FORCING THE COMPANY TO KEEP ITS CELLULAR BUSINESS SEPARATE FROM OTHER OPERATIONS NO MATTER HOW BADLY ANTITRUST OFFICIALS WANT TO LEAVE THEIR MARK LAWYERS SAY THE DEPARTMENT FACES AN UPHILL BATTLE IF IT CHALLENGES THE DEALS IN COURT IN RECENT YEARS COURTS HAVE BEEN LENIENT IN REVIEWING SOCALLED VERTICAL MERGERS WHICH UNITE BUYERS AND SUPPLIERS RATHER THAN DIRECT COMPETITORS BOTH OF THE PENDING CASES INVOLVE VERTICAL ISSUES FOR THE GOVERNMENT TO WIN SUCH A CASE IT WOULD HAVE TO PROVE THAT THE MERGERS WOULD CREATE ENOUGH MARKET POWER TO SUPPRESS COMPETITION IN THE TCI CASE FOR EXAMPLE THE DEPARTMENT WOULD NEED TO SHOW THAT THE MERGED COMPANY COULD KEEP NEW PROGRAMS OFF THE MARKET OR KEEP COMPETING CABLE SYSTEMS FROM GETTING EQUAL ACCESS TO EXISTING PROGRAMS THAT ISN'T EASY TO PROVE IN THE TCI CASE THE COMBINED COMPANY WOULD HAVE A PHONE OR CABLE WIRE RUNNING INTO ONLY ABOUT 22 OF THE COUNTRY'S HOUSEHOLDS A NUMBER THAT HISTORICALLY HAS BEEN CONSIDERED TOO LOW TO RAISE ANTITRUST CONCERNS ALSO CONTRARY TO THE ACCEPTED MYTHOLOGY TCI REALLY HAS A VERY SMALL INVESTMENT IN PROGRAMMING SAYS JOE SIMS A LAWYER AT JONES DAY REAVIS AND POGUE WHICH REPRESENTS TCI SIMILARLY ALTHOUGH MCCAW IS THE COUNTRY'S LARGEST CELLULAR COMPANY IT SERVES ONLY 17 OF CELLULARPHONE USERS THAT MEANS THE MARKET IS PROBABLY FRAGMENTED ENOUGH FOR AT&T TO ARGUE SUCCESSFULLY THAT OTHER EQUIPMENT AND CELLULAR COMPANIES CAN STILL COMPETE LAWYERS SAY THE COMPANIES HAVE VOLUNTARILY ADDRESSED SOME ISSUES THAT HAD TRIGGERED SOME OF THE MOST SERIOUS ANTITRUST CONCERNS ROBERT ALLEN AT&T'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PROMISED AT A CONGRESSIONAL HEARING LAST MONTH THAT THE MERGED COMPANY WOULD ALLOW CARRIERS OTHER THAN AT&T TO COMPETE FOR MCCAW'S LONGDISTANCE BUSINESS THAT WOULD EXPAND COMPETITION IN THE TELEPHONE INDUSTRY BECAUSE MCCAW CURRENTLY BUYS FROM AT&T ALL THE LONGDISTANCE SERVICE IT PROVIDES CUSTOMERS TCI ALSO HAS SAID IT WILL DIVEST ITSELF OF ITS CABLETELEVISION OPERATIONS IN AREAS WHERE BELL ATLANTIC OFFERS TELEPHONE SERVICE EITHER BY SWAPPING THOSE OPERATIONS FOR OTHERS OUTSIDE THE REGION OR BY SPINNING THEM OFF TO EXISTING SHAREHOLDERS ALTHOUGH THE TWO COMPANIES DON'T COMPETE DIRECTLY NOW THEY WOULD END UP DOING SO WHEN VIDEO PROGRAMS BEGIN TO BE TRANSMITTED OVER TELEPHONE WIRES THOSE CONCESSIONS HAVE LEFT ANTITRUST REGULATORS WITH MUCH LESS TO CHEW ON AS THEY SCRUTINIZE THE MERGER PROPOSALS BUT AT THE SAME TIME THE JUSTICE DEPARTMENT IS UNDER HEAVY PRESSURE TO FLEX ITS MUSCLES FROM SOME MEMBERS OF CONGRESS WHO ARE WARY OF THE GIANT DEALS THOSE WATCHFUL EYES INSURE THAT THE COMPANIES WILL BE AT THE VERY LEAST SUBJECTED TO AN EXHAUSTIVE PROBE INDEED ADVISERS IN SEVERAL OF THE COMPANIES' CAMPS WORRY THAT THE CLINTON ADMINISTRATION MAY CHOOSE ONE BUT NOT NECESSARILY BOTH OF THE DEALS TO SHOW THAT IT INTENDS TO LIVE BY ITS AGGRESSIVE ANTITRUST RHETORIC KNOWING THIS EACH COMPANY IS POINTING ITS FINGER AT THE OTHER DEAL SAYING THAT'S WHERE THE REAL ANTITRUST PROBLEMS LIE THIS MAY MAKE IT EASIER FOR JUSTICE TO WRESTLE CONCESSIONS IN THE AT&T CASE SUCH CONCESSIONS MIGHT INCLUDE A COURTENFORCED PROMISE NOT TO DISCRIMINATE AGAINST MCCAW'S COMPETITORS THE DEPARTMENT MIGHT ALSO REQUIRE THE KIND OF STRUCTURAL SEPARATION THE BABY BELLS ARE SEEKING OR IT MIGHT CONDITION THE DEAL ON THE EASING OF CURRENT REGULATIONS THAT KEEP THE BABY BELLS FROM COMPETING WITH AT&T'S LONGDISTANCE SERVICE IF JUSTICE TRIES TO FORCE TCI TO SELL SOME PROGRAMMING THE BATTLE WOULD LIKELY TURN ON HOW EXTENSIVE A SALE THE DEPARTMENT WANTS ADVISERS ON THE DEAL SAY TCI'S RESERVOIR OF PROGRAMS IS A LARGE PART OF WHAT ATTRACTED BELL ATLANTIC ALSO TCI'S CHIEF EXECUTIVE JOHN MALONE WON'T EASILY GIVE UP THE PROGRAMMING HE HAS AMASSED IN HIS CABLE EMPIRE JUSTICE MAY CONSIDER LESS DRASTIC CONDITIONS INSTEAD SUCH AS FORCING THE COMPANY TO BUY NEW PROGRAMMING THROUGH SEPARATE DIVISIONS RATHER THAN AS A CONGLOMERATE IT COULD ALSO BALK AT PLANS TO LET CURRENT TCI SHAREHOLDERS KEEP A STAKE IN A SPINOFF OF BELL ATLANTICAREA CABLE OPERATIONS ALTHOUGH TCI INSISTS NONE OF THOSE SHAREHOLDERS INCLUDING MR MALONE WOULD HAVE A CONTROLLING INTEREST THE REVIEW PROCESS AND OTHER REGULATORY HURDLES ARE LIKELY TO DELAY THE COMPLETION OF THE AT&TMCCAW UNION UNTIL SPRING THIS WEEK THE JUSTICE DEPARTMENT IS EXPECTED TO REQUEST EXTENSIVE NEW INFORMATION ON THE BELL ATLANTICTCI DEAL WHICH PROBABLY WON'T BE COMPLETED UNTIL EARLY 1995 A US DISTRICT JUDGE IN BOSTON REDUCED A JURY'S ANTITRUST DAMAGE VERDICT AGAINST THE NATIONAL FOOTBALL LEAGUE TO 51 MILLION FROM 114 MILLION BUT HE REJECTED NFL MOTIONS FOR A NEW TRIAL JUDGE EDWARD HARRINGTON RULED THAT THE JURY'S ORIGINAL VERDICT OF 38 MILLION IN DAMAGES WHICH WAS AUTOMATICALLY TREBLED WAS EXCESSIVE HE SAID ACTUAL DAMAGES WERE 17 MILLION THE JURY RULED IN OCTOBER THAT THE NFL HAD VIOLATED ANTITRUST LAWS IN PREVENTING FORMER NEW ENGLAND PATRIOTS OWNER WILLIAM SULLIVAN FROM TRYING TO SELL STOCK TO THE PUBLIC IN 1987 IN ITS RULING THE JURY FOUND THAT SOME OF THE NFL RESTRICTIONS ON OWNERSHIP HURT COMPETITION AND VIOLATED ANTITRUST LAWS UNLIKE OTHER PROFESSIONAL SPORTS THE NFL GENERALLY BARS CLUB OWNERSHIP BY CORPORATIONS THAT AREN'T PRIMARILY DEVOTED TO FOOTBALL AND BY PUBLIC SHAREHOLDERS JOSEPH ALIOTO A SAN FRANCISCO ATTORNEY WHO REPRESENTED MR SULLIVAN SAID HE WILL RECOMMEND THAT HIS CLIENT ACCEPT THE REDUCED AMOUNT RATHER THAN SEEK A NEW TRIAL ON DAMAGES HE ADDED THE FIRST CIRCUIT COURT OF APPEALS WHERE THE APPEAL WOULD BE LODGED HAS A VERY GOOD RECORD ON UPHOLDING DAMAGE VERDICTS WHERE THE JUDGE HAS REVISED IT THAT SHOWS HE STUDIED IT CAREFULLY NFL LAWYERS HAVE SAID THEY EXPECT TO APPEAL THE VERDICT WILLIAM H SULLIVAN JR VS PAUL TAGLIABUE ET AL NO WILLIAM M BULKELEY CONTRIBUTED TO THIS COLUMN 9312090164 931209 PEPPERAND SALT IN EVERY DISH AND CUP NUKES DOMINATE THE MAP I THINK I'LL TAKE A NAP TO KEEP THEM IN CHECK IS HARD THEY'LL ALWAYS TAKE A YARD 9312090163 931209 BUSINESS BRIEF NASD CHATFIELD DEAN SET SETTLEMENT FOR CHARGES OF SECURITIES VIOLATIONS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ORDERED CHATFIELD DEAN & CO TO REPAY OVERCHARGED CUSTOMERS 19 MILLION AND FINED THE STOCK BROKERAGE HOUSE 685000 TO SETTLE CHARGES OF STOCK MANIPULATION AND OTHER SECURITIES VIOLATIONS THE NASD WHICH OPERATES AND REGULATES THE NASDAQ STOCK MARKET ALSO IMPOSED STIFF PENALTIES ON TOP OFFICERS OF CHATFIELD DEAN THE ENGLEWOOD COLO FIRM IN 1990 INHERITED MANY OF THE BROKERS AND PROBLEMS OF DEFUNCT PENNYSTOCK BROKERAGE FIRM STUARTJAMES CO ALSO OF ENGLEWOOD THE SETTLEMENT NEGOTIATED ON CHATFIELD DEAN'S BEHALF BY FORMER SECURITIES AND EXCHANGE COMMISSION CHAIRMAN DAVID RUDER VOIDS PENDING NASD CHARGES AGAINST THE FIRM WHICH HAS NEARLY 600 BROKERS IN 10 CITIES A RELATED SETTLEMENT IS PENDING AT THE SEC THE NASD AGREEMENT REQUIRES CHATFIELD DEAN TO RETAIN MR RUDER AND FORMER SEC GENERAL COUNSEL DANIEL GOELZER BOTH WITH THE CHICAGO LAW FIRM BAKER & MCKENZIE FOR TWO YEARS TO REVIEW ITS COMPLIANCE PROGRAM THE NASD SLAPPED FOURMONTH SUSPENSIONS ON CHATFIELD DEAN CHAIRMAN AND CHIEF EXECUTIVE SANFORD D GREENBERG ROBERT L LEMON VICE PRESIDENT FOR SALES AND THREE FORMER BRANCH MANAGERS JOHN K WATTON ANTHONY DECAMILLIS AND KEVIN GROM THE FIRM'S COMPLIANCE DIRECTOR KENNETH S BERNSTEIN WAS SUSPENDED FOR TWO YEARS ITS HEAD TRADER WILIAM R MACCALLUM JR WAS SUSPENDED FOR SIX MONTHS MR GREENBERG ALSO WAS FINED 100000 MR LEMON WAS FINED 75000 MESSRS BERNSTEIN AND GROM WERE FINED 50000 EACH AND MESSRS WATTON DECAMILLIS AND MACCALLUM EACH WERE FINED 25000 SPEAKING ON BEHALF OF THE FIRM AND OTHER OFFICERS MR GREENBERG SAID HE WAS EXTREMELY HAPPY AND GRATEFUL TO REACH A TOTAL SETTLEMENT WITH THE NASD HE CLAIMED THE FIRM INHERITED MANY OF ITS PROBLEMS WHEN IT TOOK OVER 10 STUARTJAMES OFFICES AFTER THAT FIRM WAS FORCED OUT OF THE PENNYSTOCK BUSINESS BY HEAVY NASD FINES AND STIFFER PENNYSTOCK RULES SINCE 1990 HE ADDED THE FIRM HAS DISMISSED VIRTUALLY ALL OF THE NEARLY 300 BROKERS IT INHERITED FROM STUARTJAMES THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN DISCIPLINING BROKERAGE FIRM CHATFIELD DEAN & CO SUSPENDED COMPLIANCE DIRECTOR KENNETH S BERNSTEIN FOR TWO YEARS IN CERTAIN SUPERVISORY CAPACITIES AN ARTICLE YESTERDAY INCORRECTLY SAID MR BERNSTEIN WAS SUSPENDED FOR TWO YEARS 9312090162 931209 WORTH A TRIP CUTRATE DENTURES LEAD TO THE OZARKS FOLKS HITCH UP THEIR RVS AND HEAD FOR MISSOURI WORD OF MOUTH IS GOOD BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL MOUNT VERNON MO THERE ARE THOSE WHO MIGHT CONSIDER IT ODD TO TRAVEL 4000 MILES FOR NEW DENTURES BUT CHARLES AND AMY RUSSELL AREN'T AMONG THEM THE RUSSELLS LIVE IN EVANSVILLE WYO TWICE IN THE PAST MONTH THEY HAVE MADE THE TWODAY DRIVE TO THIS LITTLE OZARK TOWN SO HE COULD HAVE WORK DONE AT THE MID AMERICA DENTAL CLINIC A BIG DISCOUNTDENTURE OPERATION HERE EVEN WITH TWO TRIPS WE SAVED MONEY MRS RUSSELL SAYS A WYOMING DENTIST HAD QUOTED MR RUSSELL A PRICE OF MORE THAN 2000 FOR NEW DENTURES INCLUDING RELATED WORK THE DENTURES HERE CAME TO 335 THOUGH IN A LESSAMBITIOUS PROCEDURE THE CLINIC NORMALLY HAS SAMEDAY SERVICE BUT THE FITTING MR RUSSELL NEEDED PARTIALS TAKES TWO VISITS THREE WEEKS APART WHILE HERE HE ALSO IS GETTING HIS EYES AND EARS WORKED ON AT DISCOUNT SHOPS ELSEWHERE IN THE BUILDING SO WHEN I LEAVE I WILL HAVE TWO HEARING AIDS A SET OF GLASSES AND A SET OF TEETH MR RUSSELL WHO IS 65 SAYS HAPPILY AS HE SITS WITH HIS WIFE IN THE SPACIOUS WAITING ROOM WHICH HAS MORE THAN 100 CHAIRS AND A SIGN READING IF YOU HAVE ADHESIVE IN YOUR DENTURE PLEASE GO TO THE RESTROOM AND REMOVE IT HE ADDS THAT HE IS DELIGHTED WITH THE SERVICE IN THIS PART OF THE WORLD SUCH BEHAVIOR ISN'T UNUSUAL IT'S WHAT WE CALL LONGDISTANCE DENTISTRY SAYS SANDY HUNT WHO SUPERVISES THE FRONT DESK AT THE MID AMERICA DENTAL HEARING AND VISION CENTER WE HAD A WOMAN FLY DOWN FROM ALASKA LAST SPRING SHE SAYS SHE HAD A LOT OF CROWN AND BRIDGE WORK IT WAS GOING TO COST HER 12000 THERE IT WAS 4500 HERE SO SHE FLEW DOWN FOR TWO VISITS AND STILL SAVED MONEY THE DISCOUNTDENTURE BUSINESS HAS ITS ROOTS IN FLORENCE SC WHERE A DENTIST NAMED CL SEXTON OPENED A GENERAL PRACTICE IN 1924 FLORENCE AT THE TIME WAS A RAILROAD HUB ON THE LINE BETWEEN NEW YORK AND MIAMI AND DR SEXTON'S PRACTICE EVOLVED INTO A DENTURE CLINIC FOR TRAVELERS BY USING ITS OWN LAB IT KEPT SERVICE FAST AND PRICES LOW BUSINESS BOOMED AND IMITATORS FOLLOWED THE SEXTON DENTAL CLINIC IS STILL THRIVING BUT NEWCOMERS HAVE ADDED WRINKLES TO THE CONCEPT THE CENTER HERE WHICH OPENED IN 1979 THINKS IT IS THE ONLY DISCOUNT FACILITY WITH EYES EARS AND TEETH UNDER ONE ROOF IT ALSO HAS ITS OWN CAMPGROUND WITH HOOKUPS FOR 16 RECREATIONAL VEHICLES AND IT SEEMS TO BE ONE OF THE BIGGEST SUCH OPERATIONS THE MID AMERICA CENTER IS SET ON 30 ACRES OF SLOPING COUNTRYSIDE ALONG INTERSTATE 44 IN SOUTHWEST MISSOURI THE MAIN BUILDING IS A HANDSOME ONESTORY STRUCTURE OF BLUEGRAY WOOD AND OZARK STONE THERE IS A GAZEBO NEAR THE ENTRANCE AND AN AMERICAN FLAG OUT FRONT THE LARGE PARKING LOT IS FULL OF CARS ONE OF WHICH HAS A BUMPER STICKER READING I LOVE THE BIBLE THE DENTAL CLINIC HAS NORMAN ROCKWELL PRINTS ON THE WALLS IT ALSO HAS FOUR DENTURE DENTISTS THREE GENERAL DENTISTS AND ONE HYGIENIST THEY TYPICALLY SEE AROUND 100 PATIENTS A DAY THE HEARING CENTER AVERAGES ABOUT 20 PATIENTS THE VISION OPERATION 10 ABOUT A DOZEN PEOPLE WORK IN THE DENTAL HEARING AND VISION LABS AT 630 EACH WEEKDAY MORNING WHEN THE BUILDING OPENS PATIENTS ARE LINED UP OUTSIDE THE DOOR THE LOBBY HAS A BIG US MAP WHERE VISITORS STICK PINS FOR THEIR HOMETOWNS EVERY STATE HAS PINS IN IT SOME OF THE TRAFFIC IS SEASONAL SUCH AS THE MIGRATION OF SNOWBIRDS RETIREES WHO SPEND WINTERS IN THE SOUTH A VISIT IS OFTEN MUCH MORE THAN JUST A DENTAL VISIT TO SOME IT'S A SOCIAL OCCASION AUSTIN AND WYLMA CAMPBELL WHO DROVE DOWN FROM FORT SCOTT KAN FOR HIS DENTURE ADJUSTMENT PERSUADED ANOTHER COUPLE TO COME ALONG AND AS MR CAMPBELL PUTS IT HANG OUT AND HAVE FUN ALL DAY JUST NOW THE FUN CONSISTS OF SITTING IN THE WAITING ROOM TALKING UP A STORM OTHERS HANG OUT ALL NIGHT IT WAS JUST A FUN THING SOMETHING DIFFERENT SAYS ILLIENE DEAL A PLEASANT SILVERHAIRED WOMAN ABOUT THREE COUPLES' DECISION LAST YEAR TO TURN A ROUTINE DENTAL TRIP INTO AN OVERNIGHT EXCURSION IN THEIR MOTOR HOMES MRS DEAL SAYS SHE AND HER HUSBAND ELVIE AND THE TWO OTHER COUPLES PARKED THEIR VEHICLES IN THE CENTER'S CAMPGROUND THEY ALL SAW THE DENTIST AND SPENT THEIR FREE TIME DOING THE TOWN WHICH HAS A POPULATION OF ABOUT 3500 THE LOCAL BEN FRANKLIN STORE MRS DEAL SAYS HAS THE PRETTIEST DISPLAY OF QUILTS YOU EVER SAW MRS DEAL IS FROM NEOSHO MO MR DEAL A RETIRED AIRLINE MECHANIC IS FROM REDWOOD CITY CALIF SINCE THEIR MARRIAGE EIGHT YEARS AGO THEY HAVE DIVIDED THEIR TIME BETWEEN THE TWO TOWNS BUT SHE STILL HASN'T ADJUSTED TO THE HUSTLEBUSTLE OF CALIFORNIA WHEN YOU GO GROCERY SHOPPING SHE SAYS IT'S LIKE WALMART THE DAY BEFORE CHRISTMAS THE CLINIC'S LOWESTPRICED SET OF DENTURES WHICH ACCOUNTS FOR MORE THAN HALF OF THOSE SOLD GOES FOR 195 A PRICE THAT HASN'T CHANGED SINCE THE CLINIC OPENED 14 YEARS AGO BY COMPARISON ANOTHER DENTIST HEREABOUTS SAYS HE CHARGES APPROXIMATELY 1000 FOR A SET OF DENTURES THOUGH HIS PROCESS INCLUDES STEPS FOR WHICH THE MID AMERICA CLINIC CHARGES EXTRA AND TYPICALLY REQUIRES FOUR APPOINTMENTS THE LOWESTPRICED SET OF DENTURES AT SOUTH CAROLINA'S SEXTON CLINIC IS 100 MID AMERICA OFFERS THREE FREE DENTURE ADJUSTMENTS IN THE FIRST 90 DAYS AND IT STRESSES CUSTOMER SERVICE IT'S VERY CLEAR WE CAN'T FILL THIS PLACE ON ADVERTISING ALONE SAYS SCOTT GEORGE GENERAL MANAGER OF THE CENTER OF WHICH HIS LATE FATHER WAS A FOUNDER AND WHICH HIS FAMILY OWNS TODAY WORD OF MOUTH IS OUR BEST ADVERTISING HE SAYS AND GENERATES MORE THAN 80 OF BUSINESS THE CENTER ALSO HAS BILLBOARDS AND BUYS ADS IN SMALL NEWSPAPERS AND MAGAZINES ON ONE RECENT DAY WORD IN THE WAITING ROOM WAS GOOD IT'S WONDERFUL IT'S WONDERFUL IRMA LABOUNTY A FRIENDLY WOMAN WITH A SOFT COUNTRY VOICE SAYS OF THE CLINIC I WOULDN'T ASK FOR ANYTHING MORE MRS LABOUNTY LIVES ON A FARM NEAR SPRINGDALE ARK SHE VOLUNTEERS THAT SHE IS 72 I TELL PEOPLE I AM OLD AND PROUD OF IT AND SHE IS ON HER FOURTH TRIP HERE THIS YEAR THIS TIME WITH A SON WHO IS BEING FITTED FOR DENTURES AS SHE SITS IN THE WAITING ROOM SHE PASSES THE TIME SHOWING OFF PHOTOS OF FISH SHE HAS CAUGHT TO ANYONE WHO SEEMS INTERESTED THIS IS A TWODAY LIMIT SHE SAYS HANDING OVER A SNAPSHOT OF 12 FISH LYING ON THE GROUND AND THIS IS ANOTHER TWODAY LIMIT AND HERE ARE JUST TWO BIG ONES I CAUGHT AND WANTED A PICTURE OF HERE IS A ONEDAY LIMIT WITH A CUTTHROAT TROUT SHE ADDS YOU WOULDN'T BELIEVE HOW MUCH I FISH OF COURSE NOT EVERY PATIENT LEAVES HAPPY THE SPRINGFIELD DENTAL SOCIETY WHICH COVERS THIS AREA SAYS DENTURES GENERALLY PROVOKE MORE COMPLAINTS THAN OTHER DENTAL PROCEDURES BECAUSE OF PROBLEMS IN FIT ALTHOUGH IT SAYS IT DOESN'T KNOW OF ANY SPECIFIC COMPLAINTS ABOUT THIS CLINIC MID AMERICA SUPPLIES FEEDBACK CARDS TO PATIENTS AND MR GEORGE SAYS HE PERSONALLY FOLLOWS UP ON EVERY NEGATIVE ONE JAMES MCGIVNEY A ST LOUIS DENTIST WHO JUST STEPPED DOWN AS HEAD OF THE MISSOURI DENTAL BOARD SAYS THERE HAVE BEEN SURPRISINGLY FEW COMPLAINTS AGAINST MID AMERICA I WOULD SAY THE NUMBER OF COMPLAINTS GENERATED PER NUMBER OF VISITS IS PROBABLY LOWER FOR THEM THAN IT IS FOR THE AVERAGE DENTAL POPULATION HE SAYS ONE REASON HE SUSPECTS IS THAT PEOPLE DO REALIZE THEY GET WHAT THEY PAY FOR INCLUDING SHORTCUTS THAT A FULLFARE DENTIST WOULDN'T TAKE THE CLINIC HERE WAS STARTED AFTER HAROLD GEORGE A LOCAL OSTEOPATH NOTICED THAT MANY PATIENTS NEEDING DENTURES COULDN'T AFFORD THEM HE LEARNED OF THE SEXTON CLINIC WENT TO SOUTH CAROLINA TO CHECK IT OUT AND WITH A LOCAL DENTIST AND A FORMER SEXTON TECHNICIAN AS PARTNERS OPENED MID AMERICA WE WERE IN THE BLACK FROM THE BEGINNING SAYS BETTY GEORGE DR GEORGE'S WIDOW WHO NOW OVERSEES ADVERTISING THE HEARING CENTER WAS OPENED IN 1989 AND THE VISION UNIT IN 1991 TODAY MID AMERICA IS ONE OF THE BUSINESS MAINSTAYS OF MOUNT VERNON AND PERHAPS THE CHIEF REASON A TOWN THIS SIZE HAS FIVE MOTELS EVEN THE A TO Z PAWN SHOP WHICH IS SITUATED ON THE COURTHOUSE SQUARE FEELS THE RIPPLE EFFECTS AS DENTURE PATIENTS WANDER IN FOR SMALL PURCHASES YOU WOULDN'T BELIEVED IT SAYS JOHN GILMORE WHO WITH HIS WIFE LOIS OWNS THE SHOP THE PEOPLE THAT JUST LEFT WERE FROM WATERLOO IOWA HE WAS GETTING NEW DENTURES ANOTHER WAS FROM PEA RIDGE ARK I'VE SEEN THEM FROM ST LOUIS AND ILLINOIS OH IT'S UNREAL 9312090161 931209 LETTERS TO THE EDITOR SWEET CHARITY WILL KILL A BANK AS I READ THE NOV 5 ARTICLE CLINTON EXPANDS ATTACK ON LOAN BIAS AS DATA SHOW A CONTINUING PROBLEM I COULDN'T HELP BUT ANTICIPATE AN ENDOFTHEPAGE ZINGER THAT SHOWS THE FAULTY REASONING OF THE CLINTON TEAM UNFORTUNATELY THE ADMINISTRATION'S CHARGES OF WIDESPREAD RACISM WERE LEFT STANDING AS THOUGH THEY WERE JUSTIFIED APPARENTLY YOU DID NOT CONSIDER THE POSSIBILITY THAT DIFFERING CREDITWORTHINESS AMONG DIFFERENT RACIAL GROUPS RATHER THAN RAMPANT DISCRIMINATION MIGHT IN FACT ACCOUNT FOR THESE DISPARITIES BANKS ARE NOT CHARITIES IN ORDER TO STAY IN BUSINESS THEY MUST BE PRUDENT IN ASSESSING THE RISK OF INDIVIDUALS SEEKING LOANS TO AVOID DEFAULTS TO REQUIRE SUCH CRITERIA AS RACE SEX ETC WHEN DISPENSING LOANS IS TO ASK BANKERS TO CLOUD ECONOMIC DECISIONS WITH THE BROADER GOALS OF THE CLINTON ADMINISTRATION'S SOCIAL AGENDA 9312090160 931209 WHO'S NEWS UNUM CORP UNUM CORP PORTLAND MAINE ROBERT E STATON 47 YEARS OLD WAS NAMED CHAIRMAN OF THIS SPECIALTY INSURANCE HOLDING COMPANY'S COLONIAL LIFE & ACCIDENT INSURANCE CO UNIT HE SUCCEEDS GAYLE O AVERYT 60 WHO WILL CONTINUE IN AN ADVISORY ROLE UNTIL HIS RETIREMENT IN OCTOBER 1995 MR STATON HAD BEEN SENIOR VICE PRESIDENT FOR FINANCE AND CORPORATE SERVICES FOR THE COLUMBIA SC UNIT PAUL H CLIFTON 46 WAS NAMED PRESIDENT OF THE UNIT HE FILLS A POST THAT HAS BEEN VACANT FOR A YEAR MR CLIFTON HAD BEEN EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING 9312090159 931209 INTERNATIONAL CROWD OF RUSSIAN POLITICAL CANDIDATES QUICKLY TURNS TO QUESTIONABLE TACTICS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL OMSK RUSSIA RUSSIANS MAY LACK EXPERIENCE WITH FREE ELECTIONS BUT THEY'VE QUICKLY CAUGHT ON TO THE CONCEPT OF THE SLEAZY CAMPAIGN SERGEI NOSOVIETS A CANDIDATE FOR THE NEW NATIONAL LEGISLATURE HAS NO QUALMS ABOUT ABUSING HIS POSITION AS HEAD OF THE STATE TELEVISION STATION HERE IN OMSK A FRIGID SIBERIAN INDUSTRIAL CITY BY LAW CANDIDATES GET EQUAL ACCESS TO THE AIRWAVES BUT THE 35YEAROLD MR NOSOVIETS KEEPS FINDING WAYS TO PUT HIMSELF ON THE AIR AND KEEP HIS RIVALS OFF THESE DAYS HE SOMETIMES APPEARS AS A NEWS ANCHOR AND EVEN DOES COMMERCIALS SURE IT'S AN EXTRA FORM OF CAMPAIGNING HE SAYS BUT I DON'T THINK IT'S MORALLY WRONG IT'S BEEN THAT KIND OF ELECTION RACE AS RUSSIA PREPARES FOR ITS FIRST VOTE SINCE THE COLLAPSE OF THE COMMUNIST SYSTEM TWO YEARS AGO THE TRAPPINGS OF DEMOCRACY ARE EMERGING BUT THAT INCLUDES ITS DARK SIDE DUBIOUS CAMPAIGN TACTICS IN OMSK AND ELSEWHERE THERE ARE FAR TOO MANY DEMOCRATS RUNNING FOR THE LEGISLATURE THE PROBLEM IS PRIMARILY VANITY VIRTUALLY EVERY PERSON OF STATURE IN RUSSIA IS INSISTING ON RUNNING FOR OFFICE HIMSELF BY ALL LOGIC THE PROYELTSIN FORCES IN THE CENTRAL OMSK ELECTORAL DISTRICT SHOULD WIN HANDS DOWN IN THE VOTING THIS SUNDAY BUT FOUR OF THE SEVEN CANDIDATES HAVE ESSENTIALLY IDENTICAL PLATFORMS TWO EVEN ARE CAMPAIGNING UNDER THE SAME PARTY BANNER AND SLOGANS AND NO ONE IS DROPPING OUT EVEN THOUGH A SPLIT VOTE COULD HAND THE ELECTION TO A FRINGE NEOFASCIST WHO IS ONE OF MR YELTSIN'S MOST OUTSPOKEN FOES IGNORING THAT THREAT THE DEMOCRATS ARE SLUGGING IT OUT AMONG THEMSELVES FREQUENTLY RESORTING TO DIRTY TRICKS MR YELTSIN'S LOCAL REPRESENTATIVE WHO IS BACKING A PROMINENT OMSK BUSINESSMAN IS TRYING TO DISQUALIFY MR NOSOVIETS ON CLEARLY TRUMPEDUP CHARGES OF ILLEGAL REGISTRATION IN RETALIATION MOSCOW OFFICIALS WHO SUPPORT MR NOSOVIETS ARE TRYING TO OUST THE YELTSIN REPRESENTATIVE WATCHING ALL OF THIS WITH GLEE IS SERGEI BABURIN AN ULTRANATIONALIST CANDIDATE AND LEADER OF A BANNED ANTIYELTSIN ORGANIZATION WITH A STREAK OF WHITE HAIR AND A LENINLIKE GOATEE MR BABURIN 34 CUTS A STRIKING POSE HE ENJOYS LIMITED LOCAL SUPPORT BUT MIGHT PREVAIL IF THE DEMOCRATS CONTINUE TO BASH EACH OTHER ALL BABURIN HAS TO DO IS SIT BACK AND ENJOY MR NOSOVIETS CONCEDES WITH HIS PARTY BANNED MR BABURIN IS RUNNING MOSTLY A ONEMAN CAMPAIGN HIS HEADQUARTERS IS THE TINY OFFICE ROOM OF OMSK TIMES A FLEDGLING WEEKLY WITH SIMILAR NATIONALISTIC VIEWS WITH LITTLE ACCESS TO TELEVISION OR THE LARGERCIRCULATION PAPERS HE POUNDS THE PAVEMENT SPEAKING TO THREE OR FOUR GATHERINGS A DAY MR BABURIN'S CAMPAIGN VEHICLE A CLUNKY BORROWED DELIVERY VAN ARRIVES AT THE HOUSE OF TEACHERS WHERE 300 MOSTLY ELDERLY INTELLECTUALS CHEER HIS COMING SOUNDING A THEME OF NATIONAL CHAUVINISM AND NOSTALGIA FOR THE SOVIET ERA MR BABURIN DIRECTS A FEW SLANDEROUS BARBS AT MR YELTSIN AND THEN SURPRISES HIS AUDIENCE BY URGING EVERYONE TO HAVE AS MANY BABIES AS POSSIBLE SO THAT THE AREA ISN'T OVERRUN BY CHINESE MR BABURIN HIMSELF FELL VICTIM TO CAMPAIGN TRICKERY THAT RECALLS A FAVORITE TACTIC OF THE COMMUNIST PARTY THE FORMER COMMUNIST PARTY DAILY NEWSPAPER EVENING OMSK PUBLISHED A RAMBLING LETTER SUPPOSEDLY SIGNED BY 194 MUSCOVITES THAT SAID MR BABURIN IF ELECTED WOULD UNLEASH A WAVE OF BLOODY TERROR THE PAPER WOULDN'T PUBLISH A RESPONSE I NEED MY OWN ACCESS TO THE MASS MEDIA TO KEEP THESE GUYS FROM SAYING BABURIN EATS BABIES FOR BREAKFAST' SAYS MR BABURIN I WAS GRANTED SEVEN MINUTES OF TV TIME AND I BLEW IT GIVING A BORING SPEECH ANDREI GOLUSHKO A WELLATTIRED MARLBOROSMOKING PRIVATE BUSINESSMAN HAS LEARNED A FEW TRICKS OF HIS OWN IN THE CAMPAIGN IN HIS EFFORT TO PROMOTE THE CANDIDACY OF A LOCAL BUSINESSMAN HE HAS LEARNED THAT THE CITY'S NEWSPAPER COLUMNS ARE FOR SALE TO THE HIGHEST BIDDER FOR ABOUT 1000 HE CAN ARRANGE A FAVORABLE QUARTERPAGE ARTICLE FOR HIS CANDIDATE IN ANY OF OMSK'S MAIN PAPERS THEY JUST RUN THEM AS NEWS PIECES HE SAYS SMILING FROM EAR TO EAR NO NEED TO LABEL THEM AS PAID ADS ALL TOLD MR GOLUSHKO'S ASSOCIATION OF PRIVATE BUSINESSES HAS SUNK ABOUT 35000 INTO THE CAMPAIGN THE LOCAL PAPERS SEEM TO BE ENJOYING THE ATTENTION BY LAW WE'RE SUPPOSED TO BE NEUTRAL SAYS EVENING OMSK EDITORINCHIEF YURI BEREZHNOI A LARGE SIBERIAN WHO KEEPS HIS AIR CONDITIONER HUMMING DESPITE OUTSIDE TEMPERATURES WELL BELOW FREEZING BUT WE GIVE RUSSIA'S CHOICE A LOT MORE COVERAGE THAN WE DO THE OTHER PARTIES I LIKE THEM RUSSIA'S CHOICE IS THE PARTY CLOSEST TO MR YELTSIN'S GOVERNMENT DESPITE SUCH SUPPORT THE CHIEF EDITOR LIKE MANY LOCAL VOTERS SEEMS ODDLY DETACHED FROM THE SPECIFICS OF THE ELECTION ASKED WHICH CANDIDATE HE SUPPORTS MR BEREZHNOI DRAWS A BLANK UM WHO ARE THEY AGAIN OMSK'S LEAST CYNICAL CANDIDATE IS PROBABLY THE MAN FROM THE COMMUNIST PARTY WHICH HAS EMERGED AS A VIABLE OPPOSITION FORCE TWO YEARS AFTER SUFFERING A NATIONAL HUMILIATION ALEXANDER KRAVETZ A LONGTIME PARTY FUNCTIONARY ASCENDS TO THE SPEAKER'S PLATFORM AT THE AGRICULTURAL VOCATIONAL SCHOOL AND LOOKS OUT AT 300 STUDENTS IT'S A CAPTIVE AUDIENCE STUDENTS' PRESENCE AT THE SPEECH IS MANDATORY A PLODDING BUREAUCRAT MR KRAVETZ SEEMS WAY OUT OF TOUCH AS HE DRONES ON ABOUT COMMUNISM'S GLORIES THE STUDENTS GIGGLE PASS NOTES AND APPLY MAKEUP MOST ARE ATTENDING THE SCHOOL TO LEARN BUSINESS THEY ARE OBSESSED WITH MAKING MONEY NOT WITH SOCIALIST UTOPIAS I CAN'T UNDERSTAND A WORD THIS GUY'S SAYING SHRUGS TANYA KUZNETSOVA AN 18YEAROLD WHO HOPES TO LAND A WELLPAID JOB IN BUSINESS HE TALKS TOO FAST MR KRAVETZ HOWEVER FIGURES HE DID PRETTY WELL I THINK PART OF THE AUDIENCE REALLY IDENTIFIED WITH MY IDEAS HE SAYS AFTERWARD BUT WITH ALL THE BRAINWASHING IN THE MEDIA HE COMPLAINS IT'S HARD TO NOTICE A CLEAN SPOON IN A BUCKET OF SWILL DESPITE THE UNSAVORY TACTICS THE CAMPAIGN FOR THE PARLIAMENT SEAT PASSES ONE KEY TEST OF DEMOCRACY IT'S IMPOSSIBLE TO PREDICT THE OUTCOME IN THIS KIND OF ELECTION SAYS MR BABURIN A HIPPOPOTAMUS COULD WIN 9312090158 931209 BOMBARDIER WINS AMTRAK ORDER MONTREAL BOMBARDIER INC SAID IT RECEIVED A 110 MILLION ORDER FROM AMTRAK FOR 55 DOUBLEDECK PASSENGER RAIL CARS THE ORDER REPRESENTS AMTRAK'S EXERCISE OF AN OPTION UNDER A 1991 AGREEMENT AND BRINGS THE TOTAL VALUE OF THE CONTRACT TO 450 MILLION BOMBARDIER A MONTREAL TRANSPORTATION EQUIPMENT MAKER WILL PRODUCE THE CARS AT ITS PLANTS IN LA POCATIERE QUEBEC AND BARRE VT DELIVERIES ARE SCHEDULED THROUGH 1996 9312090157 931209 FAILURE GROUP TO BUY BACK STOCK MENLO PARK CALIF FAILURE GROUP INC SAID ITS BOARD HAS AUTHORIZED A STOCK REPURCHASE PLAN UNDER WHICH 2 MILLION OF THE COMPANY'S COMMON STOCK MAY BE REPURCHASED ON THE OPEN MARKET FROM TIME TO TIME IN A NEWS RELEASE THE MANAGEMENT CONSULTING COMPANY SAID IT WILL USE A PORTION OF THE REACQUIRED SHARES FOR REISSUANCE IN CONNECTION WITH EMPLOYEE STOCK PROGRAMS IT SAID THERE WERE NO OTHER SPECIFIC PLANS FOR SHARES THAT MIGHT BE PURCHASED 9312090156 931209 LAM RESEARCH GETS CONTRACT FREMONT CALIF LAM RESEARCH CORP A MAKER OF EQUIPMENT USED IN SEMICONDUCTOR MANUFACTURING SAID IT RECEIVED A 30 MILLION ORDER FROM HYUNDAI ELECTRONICS CO LAM SAID THE AWARD IS THE LARGEST SINGLE ORDER IN ITS HISTORY IT SAID KOREABASED HYUNDAI WILL USE THE LAM EQUIPMENT AT A SOPHISTICATED NEW PLANT IN INCHONKUN KOREA WHERE HYUNDAI PLANS TO PRODUCE SOME OF ITS MOST ADVANCED CHIPS 9312090155 931209 ATLANTIC SOUTHEAST AIRLINES ATLANTA ATLANTIC SOUTHEAST AIRLINES SAID NOVEMBER TRAFFIC ROSE 36 TO 623 MILLION REVENUE PASSENGER MILES FROM 458 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE ATLANTIC SOUTHEAST SAID LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED FELL TO 477 FROM 521 YEARTODATE TRAFFIC GREW 16 TO 5813 MILLION REVENUE PASSENGER MILES FROM 503 MILLION A YEAR EARLIER LOAD FACTOR DROPPED TO 472 FROM 51 9312090154 931209 WHO'S NEWS HOWTEK INC HOWTEK INC HUDSON NH DAVID R BOTHWELL 45 YEARS OLD CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE WAS NAMED CHIEF EXECUTIVE OFFICER AND ACTING PRESIDENT OF THIS MAKER OF IMAGE SCANNERS FOR GRAPHIC ARTS AND COMMERCIAL PRINTING AT THE SAME TIME KENNARD S CLOUD 48 WHO JOINED THE COMPANY IN JULY RESIGNED AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR MR CLOUD LEFT THE COMPANY FOR PERSONAL REASONS MR BOTHWELL SAID MR CLOUD COULDN'T BE REACHED IMMEDIATELY FOR COMMENT 9312090153 931209 COMMODITIES OIL PRICES FALL FURTHER ON REPORTS OF GROWTH IN INVENTORIES DECLINING NEED FOR OPEC CRUDE BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL BEARISH REPORTS OF GROWING INVENTORIES AND A DECLINING NEED FOR OPEC CRUDE OIL COMBINED TO DEPRESS OIL PRICES EVEN FURTHER YESTERDAY A REPORT RELEASED BY THE INTERNATIONAL ENERGY AGENCY IN PARIS YESTERDAY SAID THERE WOULD BE LESS DEMAND FOR CRUDE PUMPED BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAN ANTICIPATED ONLY LAST MONTH ALTHOUGH THE AGENCY SAID FOURTHQUARTER DEMAND WORLDWIDE WOULD GROW MORE STRONGLY THAN EXPECTED HIGHER GLOBAL OIL OUTPUT WOULD ACTUALLY RESULT IN LESS DEMAND FOR OPEC CRUDE EVEN THOUGH THE GROUP'S MEMBERS HAVEN'T BEEN FLAGRANTLY OVERPRODUCING AS THEY TYPICALLY DO PRODUCTION FROM OTHER SECTORS OF THE WORLD SUCH AS THE NORTH SEA HAS GROWN FLOODING THE MARKETPLACE THE AGENCY SAID THE NEED FOR OPEC CRUDE DURING THE FOURTH QUARTER WAS ACTUALLY 300000 BARRELS A DAY LESS THAN ANTICIPATED JUST LAST MONTH DEMAND FOR THE ORGANIZATION'S OIL WAS PEGGED AT 252 MILLION BARRELS A DAY SHARPLY BELOW THE OPEC PRODUCTION CEILING OF 255 MILLION BARRELS AND ITS ACTUAL OUTPUT OF AT LEAST 256 MILLION BARRELS DAILY THE NEED FOR OPEC CRUDE DURING THE FIRST QUARTER OF NEXT YEAR WAS SEEN AS 200000 BARRELS A DAY LOWER THAN PREVIOUSLY STATED AS WELL AS A RESULT THE FUTURES PRICE FOR CRUDE OIL FOR DELIVERY IN JANUARY FELL BY 11 CENTS A BARREL TO 1459 HEATING OIL PRICES DECLINED AS WELL BY 044 CENT TO 4410 CENTS A GALLON GASOLINE PRICES FELL BY 051 CENT TO 4026 CENTS A GALLON ALSO WEIGHING MOST HEAVILY ON THE MARKET WAS A REPORT RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER TRADING TUESDAY THAT SHOWED THAT US OIL INVENTORIES GREW AGAIN LAST WEEK STOCKS OF OIL HAVE BEEN MOSTLY INCREASING IN RECENT WEEKS AND TUESDAY'S NUMBERS DIDN'T SHOW ANY INDICATIONS THAT THE TREND MIGHT REVERSE THE INSTITUTE'S REPORT DISCLOSED THAT CRUDE OIL STOCKS INCREASED BY 502 MILLION BARRELS LAST WEEK TO 33990 MILLION BARRELS GASOLINE STOCKS CLIMBED BY 47 MILLION BARRELS TO 2232 MILLION WHILE HEATING OIL STOCKS GREW BY 36 MILLION BARRELS TO 1456 MILLION THE AMOUNT OF CRUDE PROCESSED ALSO ROSE SIGNALING THAT PRODUCT OUTPUT WILL INCREASE AT LEAST THROUGH THIS WEEK TRADING REMAINED LACKLUSTER AS A GROWING NUMBER OF MARKET PARTICIPANTS REMAIN ON THE SIDELINES HOPES THAT OIL MINISTERS ATTENDING A MEETING OF THE ORGANIZATION OF ARAB PETROLEUM EXPORTING COUNTRIES IN DAMASCUS MIGHT TAKE SOME ACTION TO PROP UP OIL PRICES FADED AS MINISTERS GATHERING THERE GAVE NO INDICATION THAT ANY DECISIONS REGARDING THE ISSUE WERE IMMINENT IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES SURGED ON HEAVY BUYING BY COMMODITY FUNDS AND OTHER INVESTORS CONVINCED THAT THE IMPROVING US ECONOMY WILL LEAD TO A PICKUP IN INFLATION AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP 640 AN OUNCE TO SETTLE AT 38570 AN OUNCE A SERIES OF POSITIVE GOVERNMENT REPORTS AND OTHER EVIDENCE OF ECONOMIC IMPROVEMENT HAVE ENERGIZED PRECIOUS METALS MARKETS LATELY MANY ANALYSTS ARE CONVINCED THAT THE PRICE OF GOLD MAY TOP 400 AN OUNCE IN COMING WEEKS YESTERDAY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY WERE BIG BUYERS OF GOLD FUTURES CONTRACTS ANALYSTS SAID GRAINS AND SOYBEANS CORN AND SOYBEAN FUTURES PRICES ROSE SLIGHTLY BUT NEVERTHELESS SET CONTRACT HIGHS AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY WAS UP 175 CENTS TO 29650 A BUSHEL WHILE THE JANUARY SOYBEAN FUTURES CONTRACT ROSE 175 CENTS TO 68575 A BUSHEL TWO BIG GRAINPROCESSING CONCERNS CONTINENTAL GRAIN CORP AND ARCHERDANIELSMIDLAND CO WERE SAID TO HAVE TAKEN DELIVERY OF HUNDREDS OF THOUSANDS OF BUSHELS OF CORN UNDER EXPIRING CBOT FUTURES CONTRACTS ANALYSTS SAID THE DELIVERIES INDICATED THAT THESE BIG COMMERCIAL GRAIN COMPANIES EXPECT GRAIN FUTURES PRICES TO CONTINUE TO RISE SUPPLIES OF HIGHQUALITY GRAIN ARE TIGHT BECAUSE OF THE POOR US HARVEST AND THE SHORTAGE IS EXERTING UPWARD PRESSURE ON FUTURES PRICES TRADING TODAY IS LIKELY TO BE QUIET AS TRADERS AWAIT THE RESULTS OF THE US AGRICULTURE DEPARTMENT'S SUPPLYANDDEMAND REPORT WHICH WILL BE RELEASED AFTER THE SESSION 9312090152 931209 WHO'S NEWS CHART INDUSTRIES INC CHART INDUSTRIES INC CLEVELAND JAMES R SADOWSKI 52 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF INDUSTRIAL PROCESS EQUIPMENT FOR LOW TEMPERATURE AND CRYOGENIC APPLICATIONS MR SADOWSKI FORMERLY WAS GROUP VICE PRESIDENT OF PARKER HANNIFIN CORP'S BERTEA AEROSPACE GROUP HE SUCCEEDS ARTHUR S HOLMES 52 AS PRESIDENT MR HOLMES CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE TITLE OF CHIEF OPERATING OFFICER IS NEW 9312090151 931209 DELTA AIR TRAFFIC INCREASES 97 ATLANTA DELTA AIR LINES SAID NOVEMBER TRAFFIC ROSE 97 TO 676 BILLION REVENUE PASSENGER MILES FROM 616 BILLION MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DELTA SAID ITS NOVEMBER LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 641 FROM 5827 IN NOVEMBER OF 1992 YEARTODATE TRAFFIC GREW 27 TO 762 BILLION REVENUE PASSENGER MILES FROM 742 BILLION MILES A YEAR EARLIER LOAD FACTOR ROSE TO 624 FROM 616 9312090150 931209 WHO'S NEWS CORRPRO COS CORRPRO COS MEDINA OHIO ROBERT E HODGE 56 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PROVIDER OF CORROSIONCONTROL ENGINEERING SERVICES SYSTEMS AND EQUIPMENT TO THE INFRASTRUCTURE ENVIRONMENTAL AND ENERGY MARKETS MR HODGE RECENTLY RETIRED AS SENIOR VICE PRESIDENT OF GAS SUPPLY FOR NATURAL GAS PIPELINE CO OF AMERICA A UNIT OF MIDCON CORP WHICH IN TURN IS OWNED BY OCCIDENTAL PETROLEUM CORP HE SUCCEEDS HAL CURTIS AN OFFICIAL WITH MERRILL LYNCH WHO RESIGNED IN MARCH 9312090149 931209 E&B MARINE'S STOCK SPLIT EDISON NJ E&B MARINE INC SAID A PREVIOUSLY ANNOUNCED 1FOR4 REVERSE STOCK SPLIT BECAME EFFECTIVE AND THE COMPANY EXPECTS ITS SHARES TO BE RESTORED TO NASDAQ STOCK MARKET LISTING SOON AS A RESULT OF THE REVERSE SPLIT THE NUMBER OF COMMON SHARES ISSUED AND OUTSTANDING HAS BEEN REDUCED TO ABOUT 37 MILLION THE COMPANY A DIRECTMAIL MERCHANDISER AND SPECIALTY RETAILER OF MARINE SUPPLIES AND ACCESSORIES WAS DELISTED BY NASDAQ IN 1991 9312090148 931209 WHO'S NEWS FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS CLEVELAND DONALD S SCHOFIELD 65 YEARS OLD IS RETIRING FROM HIS POSTS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS REAL ESTATE INVESTMENT TRUST EFFECTIVE DEC 31 JAMES C MASTANDREA 49 WILL SUCCEED MR SCHOFIELD MR MASTANDREA IS CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER ALONG WITH THE TITLES OF CHAIRMAN AND CHIEF EXECUTIVE MR MASTANDREA WILL CONTINUE TO HOLD THE PRESIDENT'S POST FIRST UNION HAS NO PLANS TO FILL THE POSITION OF CHIEF OPERATING OFFICER 9312090147 931209 INTERNATIONAL AB ELECTROLUX GETS OFFER STOCKHOLM SWEDISH HOUSEHOLD APPLIANCE MAKER AB ELECTROLUX SAID THAT AEG AG OF GERMANY HAD OFFERED ELECTROLUX THE 90 INTEREST THAT IT DOESN'T ALREADY OWN IN AEG HAUSGERAETE AEG WHICH ALSO MAKES HOUSEHOLD APPLIANCES TERMS OF THE POTENTIAL DEAL WEREN'T DISCLOSED AEG A UNIT OF DAIMLERBENZ AG DISCLOSED THE PROPOSAL AS PART OF A BROADER CORPORATE OVERHAUL 9312090145 931209 CELLULAR PRODUCTS PACT ENDED BUFFALO NY CELLULAR PRODUCTS INC SAID GENETIC SYSTEMS CORP ENDED ITS AGREEMENT TO SUPPLY CERTAIN CELLULAR BLOODTEST KITS TO THE CANADIAN RED CROSS THE MOVE WILL FORCE CELLULAR TO CUT 15 FULLTIME AND TEMPORARY EMPLOYEES OR 40 OF ITS WORK FORCE OVER THREE MONTHS THE AGREEMENT WITH SEATTLEBASED GENETIC REPRESENTED 35 OF CELLULAR'S 19 MILLION IN SALES IN THE NINE MONTHS ENDED SEPT 30 CELLULAR SAID THE LOSS WON'T HAVE A MATERIALLY ADVERSE EFFECT ON FUTURE OPERATIONS OR FINANCES BECAUSE THE KITS WERE SOLD AT A LOW MARGIN 9312090144 931209 TRAFFIC OF AIRTRAN UNIT MINNEAPOLIS AIRTRAN CORP'S MESABA AVIATION INC UNIT SAID ITS NOVEMBER TRAFFIC ROSE 181 TO 248 MILLION REVENUE PASSENGER MILES FROM 21 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 476 FROM 452 MESABA WHICH OPERATES AS NORTHWEST AIRLINK UNDER A MARKETING AGREEMENT WITH NORTHWEST AIRLINES SAID IT RESCINDED FURLOUGHS OF ABOUT 10 OF ITS PILOTS IT SAID IT WILL BE HIRING AN ADDITIONAL 5 TO ACCOMMODATE EXPANSION 9312090143 931209 SEC DISCIPLINES SIX FIRST INVESTORS CORP CURRENT FORMER AIDES NEW YORK THE SECURITIES AND EXCHANGE COMMISSION SANCTIONED SIX CURRENT AND FORMER EMPLOYEES OF FIRST INVESTORS CORP FOR ALLEGEDLY FAILING TO SUPERVISE BROKERS WHO SOLD TWO OF THE FIRM'S HIGHYIELD JUNKBOND MUTUAL FUNDS THE SIX MEN INCLUDING THE FIRM'S CHAIRMAN AND ITS PRESIDENT CONSENTED TO THE SANCTIONS WITHOUT ADMITTING OR DENYING THE SEC'S CHARGES NEW YORKBASED FIRST INVESTORS MANAGES 4 BILLION IN 46 MUTUAL FUNDS THE SEC SAID ITS ADMINISTRATIVE ACTION AGAINST TOP OFFICERS AT FIRST INVESTORS UNDERSCORES ITS COMMITMENT TO PUNISH EXECUTIVES WHO OVERLOOK OR CONDONE WRONGDOING AMONG BROKERS THAT COMMITMENT WAS SPELLED OUT LAST WEEK IN A SPEECH BY SEC COMMISSIONER J CARTER BEESE JR THE ACTION TIES IN WITH THE COMMISSION'S MESSAGE THAT IT WILL PURSUE SUPERVISORS SAID RICHARD WALKER DIRECTOR OF THE SEC'S NORTHEAST REGIONAL OFFICE IN NEW YORK IN ISSUING THE SANCTIONS THE SEC FOUND THAT FROM 1984 THROUGH 1990 SOME BROKERS AT FIRST INVESTORS MISLED CUSTOMERS ABOUT THE RISKS IN TWO JUNKBOND FUNDS FOR FAILING TO PROPERLY SUPERVISE THESE BROKERS DAVID D GRAYSON PRESIDENT OF FIRST INVESTORS AND OWNER OF 375 OF THE FIRM AND GLENN O HEAD CHAIRMAN WHO ALSO OWNS 375 WERE SUSPENDED FROM SUPERVISING BROKERS FOR SIX MONTHS AND THREE MONTHS RESPECTIVELY SAM SIEGEL A FORMER EXECUTIVE AND HOWARD FROMAN AND ALVIN BLUMENFELD CURRENT EXECUTIVES AT FIRST INVESTORS WERE SUSPENDED FROM SUPERVISING BROKERS FOR NINE MONTHS LOUIS WOOLF A BROKER AND FORMER MANAGER WAS SUSPENDED FROM ASSOCIATING WITH ANY BROKER DEALER OR INVESTMENT FIRM FOR SIX MONTHS HE ALSO WAS BARRED FROM SUPERVISING BROKERS FOR AT LEAST 18 MONTHS THE SETTLEMENT PAVES THE WAY FOR FIRST INVESTORS TO PAY AN ADDITIONAL 75 MILLION INTO A FUND TO COMPENSATE INVESTORS IN THE TWO JUNKBOND FUNDS ALL TOLD THE FIRM HAS ALREADY PAID OR WILL PAY 33 MILLION TO SETTLE CHARGES BY THE SEC AND STATE SECURITIES REGULATORS AND IN SETTLEMENT OF A FEDERAL CLASSACTION LAWSUIT 9312090142 931209 EXXON BUYS STAKES IN PROPERTIES IRVING TEXAS EXXON CORP SAID IT ACQUIRED STAKES IN TWO OIL AND GAS EXPLORATION PROPERTIES IN PAPUA NEW GUINEA FROM BRITISH PETROLEUM CO TERMS WEREN'T DISCLOSED THE TWO BLOCKS LOCATED IN THE SOUTHERN HIGHLANDS OF PAPUA NEW GUINEA COVER ABOUT TWO MILLION ACRES EXXON SAID IT ACQUIRED A 475 STAKE IN EXPLORATION BLOCK PPL 138/PDL 1 AND A 21 INTEREST IN BLOCK PPL 101 THE OIL COMPANY SAID FURTHER DRILLING IS NEEDED TO DETERMINE THE SIZE OF THE FIELD 9312090141 931209 WHO'S NEWS MERCK NAMES KELLEY TO MANUFACTURING POST WHITEHOUSE STATION NJ MERCK & CO SAID IT NAMED BERNARD J KELLEY PRESIDENT OF ITS MANUFACTURING DIVISION SUCCEEDING JOHN L ZABRISKIE WHO RESIGNED THIS WEEK TO BECOME CHAIRMAN OF UPJOHN CO MR KELLEY WAS PREVIOUSLY SENIOR VICE PRESIDENT OF OPERATIONS FOR THE MANUFACTURING DIVISION THE PHARMACEUTICAL COMPANY ALSO APPOINTED MICHAEL G ATIEH VICE PRESIDENT OF PUBLIC AFFAIRS SUCCEEDING ALBERT D ANGEL WHO IS RETIRING MR ATIEH WAS FORMERLY MERCK'S TREASURER 9312090140 931209 DEPRENYLNOVOPHARM ALLIANCE TORONTO DEPRENYL RESEARCH LTD SAID IT FORMED A STRATEGIC ALLIANCE WITH NOVOPHARM LTD INCLUDING THE PURCHASE OF ABOUT 12 MILLION SHARES OF DEPRENYL FOR THREE MILLION CANADIAN DOLLARS US23 MILLION UNDER THE AGREEMENT NOVOPHARM WILL MARKET A GENERIC VERSION OF DEPRENYL'S ELDEPRYL A TREATMENT FOR PARKINSON'S DISEASE AND DEPRENYL WILL MARKET SOME PRODUCTS PRODUCED BY NOVOPHARM BOTH COMPANIES ARE TORONTO PHARMACEUTICAL CONCERNS DEPRENYL CURRENTLY HAS ABOUT 187 MILLION SHARES OUTSTANDING NOVOPHARM ALSO RECEIVED WARRANTS TO PURCHASE A FURTHER 12 MILLION SHARES OF DEPRENYL FOR UP TO FOUR YEARS LESLIE DAN NOVOPHARM'S CHAIRMAN WILL JOIN DEPRENYL'S BOARD 9312090139 931209 RAX RESTAURANTS MULLS OPTIONS DUBLIN OHIO RAX RESTAURANTS INC SAID IT IS CONSIDERING CHANGING OR ENHANCING ITS FASTFOOD CONCEPT TO BOOST THE PERFORMANCE OF ITS RESTAURANTS RAX WHICH EMERGED FROM BANKRUPTCY PROCEEDINGS NOV 8 SAID IT WOULD CONSIDER BECOMING A FRANCHISEE OF ANOTHER RESTAURANT CHAIN OR A JOINT PARTNER THE FRONTRUNNERS IN OUR CONVERSION STRATEGY ARE HARDEE'S FOOD SYSTEMS AND BOSTON CHICKEN WILLIAM R UNDERHILL PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THERE ARE 80 COMPANYOWNED AND 110 FRANCHISEEOWNED OUTLETS THE COMPANY SAID IT EXPECTS TO REACH A DECISION BY YEAR END 9312090138 931209 LETTERS TO THE EDITOR GIVE OR TAKE A THOUSAND YEARS IN AN OTHERWISE INTERESTING INTERNATIONAL PAGE PIECE ON JERUSALEM ON NOV 3 ONE READS THE FOLLOWING JERUSALEM HAS BEEN CAUGHT IN AN OFTEN BLOODY TUGOFWAR BETWEEN JEWS MUSLIMS AND LATER CHRISTIANS FOR VIRTUALLY ALL OF ITS 4000YEAR HISTORY EVEN IF THE ABOVE SENTENCE HAD READ FOR MOST OF ITS 4000 YEAR HISTORY THIS WOULD IMPLY A NUMBER GREATER THAN 2001 YEARS RIGHT YET AS AN ORGANIZED RELIGION CHRISTIANITY IS NOT YET 2000 YEARS OLD AND ISLAM FOUNDED IN THE SEVENTH CENTURY IS EVEN YOUNGER THERE IS NO WAY THAT CHRISTIANS AND MUSLIMS HAVE BEEN INVOLVED WITH JERUSALEM IN ANY WAY FOR VIRTUALLY ALL OF ITS 4000 YEAR HISTORY TO BE SURE THE CITY PREDATES BIBLICAL ISRAEL'S HISTORY HOWEVER ITS PROMINENCE FOR JUDAISM CHRISTIANITY AND ISLAM DATES FROM DAVID'S CONQUEST OF THE CITY SEE II SAMUEL 56 FF AROUND 1000 BC BUT AS FAR AS ITS IMPORTANCE TO THESE THREE MONOTHEISTIC RELIGIONS WE ARE TALKING ABOUT 3000 NOT 4000 YEARS YOUR REPORTER INTERVIEWED THE WRONG PEOPLE HAD YOU TALKED TO PEOPLE FROM RAMOT SHMUEL HANOVI SANHEDRIA PISKAT ZEV HAR NOF GEULA BAYIT VEGAN GIVAT SHAUL KIRYAT MOSHE ROMEIMA MEKOR BARUCH OR DOZENS OF OTHER NEIGHBORHOODS YOU WOULD HAVE GOTTEN A COMPLETELY DIFFERENT PERSPECTIVE ACCORDING TO THE RELIGIOUS JEWS WHO LIVE IN THESE AREAS AS WELL AS AROUND THE WORLD COMPROMISE ON JERUSALEM IS UNTHINKABLE JERUSALEM WAS IS AND ALWAYS WILL BE THE SPIRITUAL FOCUS OF JEWISH LIFE IT IS THE PLACE WHERE THE SHECHINA THE DIVINE PRESENCE RESTED AT THE TIME OF THE FIRST AND SECOND TEMPLES IT IS THE PLACE WHERE THE SHECHINA WILL ONCE AGAIN BE REVEALED WHEN THE THIRD TEMPLE WILL BE BUILT SPEEDILY IN OUR DAYS YOUR REPORTER SHOULD HAVE TALKED TO ANY OF THE THOUSANDS OF CHILDREN ATTENDING RELIGIOUS SCHOOLS THROUGHOUT ISRAEL'S ETERNAL CAPITAL EVEN THE YOUNGEST COULD HAVE TOLD HER WHAT THE FUTURE HOLDS FOR JERUSALEM AS THE LATEST LINKS IN AN UNBROKEN CHAIN OF TRADITION THEY UNDERSTAND WHAT JERUSALEM MEANS TO THE JEWISH PEOPLE EVEN IF SECULAR ISRAELIS AND JEWISH INTELLECTUALS DO NOT 9312090136 931209 TECHNOLOGY & SCIENCE MEDICARE CURBS HAVEN'T HURT PSYCHIATRIC CARE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SUGGESTS THAT THE MAMMOTH MEDICARE SYSTEM'S RIGID COST CONTROLS HAVEN'T HURT THE QUALITY OF PSYCHIATRIC CARE FOR ELDERLY PATIENTS PSYCHIATRISTS INSTANTLY SEIZED THE STUDY AS EVIDENCE THAT A STRONG MENTALHEALTH BENEFIT WON'T BANKRUPT HEALTHCARE REFORM THE STUDY LED BY RAND CORP RESEARCHER KENNETH WELLS COMPARED THE EXPERIENCE OF ELDERLY PATIENTS HOSPITALIZED WITH DEPRESSION BEFORE AND AFTER A LANDMARK 1983 CHANGE IN THE MEDICARE SYSTEM THAT YEAR MEDICARE BEGAN PAYING HOSPITALS A FIXED FEE FOR EACH DIAGNOSIS RATHER THAN PAYING BY PROCEDURE OR LENGTH OF STAY CRITICS WORRIED THAT PATIENTS WOULD SUFFER AS HOSPITALS CUT BACK ON BADLY NEEDED SERVICES IN THE RAND STUDY A TEAM OF PSYCHIATRISTS COMBED THE HOSPITAL RECORDS OF MEDICARE DEPRESSION PATIENTS BEFORE AND AFTER 1983 THE TEAM RATED THE PATIENTS' QUALITY OF CARE ON SEVERAL COUNTS INCLUDING WHETHER THE ADMISSION WAS APPROPRIATE HOW THE PATIENT WAS ASSESSED AND WHAT ULTIMATELY HAPPENED TO THE PATIENT IN MOST AREAS THE RESEARCHERS FOUND THAT QUALITY ACTUALLY IMPROVED AFTER 1983 IT LOOKS LIKE QUALITY OF CARE WAS GRADUALLY INCREASING AND THE MEDICARE RULES DID NOTHING TO INTERFERE WITH THAT SAID DR WELLS WHO IS ALSO A PSYCHIATRIST AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE STUDY APPEARS IN THE DECEMBER ISSUE OF THE AMERICAN JOURNAL OF PSYCHIATRY FOR INSTANCE THE STUDY FOUND THAT 93 OF ADMISSIONS AFTER 1983 WERE APPROPRIATE COMPARED WITH 85 BEFORE 1983 ANOTHER LEAP 77 OF PATIENTS WERE PROPERLY TESTED AND ASSESSED AFTER 1983 COMPARED WITH 67 BEFORE 1983 THE STUDY SUITS THE POLITICAL VIEW OF ORGANIZED PSYCHIATRY THAT MENTALHEALTH CARE CAN BE CONTROLLED AND MEASURED CASE BY CASE JUST AS WELL AS OTHER KINDS OF MEDICINE BY CONTRAST THE CLINTON ADMINISTRATION'S NATIONAL HEALTH PLAN SINGLES OUT MENTAL HEALTH WITH A CEILING ON HOSPITAL DAYS AND OUTPATIENT VISITS FOR ALL PATIENTS THE PSYCHIATRY JOURNAL TOOK THE UNUSUAL STEP OF HAILING THE RAND STUDY IN AN EDITORIAL THAT EXPLICITLY LINKED IT TO HEALTHCARE REFORM THE STUDY GIVES PSYCHIATRY AN OPPORTUNITY TO EMPIRICALLY JUSTIFY THE VALUE OF THE CARE WE PROVIDE AND TO ARGUE MORE EFFECTIVELY FOR NONDISCRIMINATORY REIMBURSEMENT UNDER NATIONAL HEALTHCARE REFORM DECLARES THE EDITORIAL WRITTEN BY PSYCHIATRIST STEVEN SHARFSTEIN IN AN INTERVIEW DR WELLS POINTED OUT A POSSIBLE FLAW IN HIS STUDY IT LOOKED ONLY AT PATIENTS WHO ENTERED A HOSPITAL HE SAID IT'S POSSIBLE THAT THE MEDICARE RESTRICTIONS TOOK A BROADER TOLL ON DEPRESSION PATIENTS BY DETERRING HOSPITALS FROM ADMITTING THEM 9312090135 931209 INTERNATIONAL ALOOF THATCHER DEFENDS HER ROLE IN IRAQ ARMS CASE BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AN IMPERIOUS MARGARET THATCHER TOOK THE WITNESS STAND YESTERDAY AND OFFERED NO APOLOGIES FOR HER GOVERNMENT'S 1988 APPROVAL TO SELL SOPHISTICATED EQUIPMENT TO IRAQ THAT WAS USED TO MAKE WEAPONS THE ISSUE BECAME A CAUSE CELEBRE LAST YEAR WHEN A CRIMINAL CASE AGAINST A BRITISH COMPANY INVOLVED IN THE EXPORTS FELL APART BECAUSE OF EMBARRASSING NEW EVIDENCE DOCUMENTS SHOWING THAT THE THATCHER GOVERNMENT HAD APPROVED THE EXPORTS WHICH IRAQ USED TO HELP CONSTRUCT ITS WAR MACHINE WHILE ADMITTING HER GOVERNMENT MADE SOME ERRORS LADY THATCHER THE STAR WITNESS IN BRITAIN'S ARMSTOIRAQ INQUIRY TREATED THE ISSUE AS UNIMPORTANT THE FORMER PRIME MINISTER SPENT MUCH OF SIX HOURS ON THE WITNESS STAND CRITICIZING HER INQUISITORS FOR QUESTIONS SHE CALLED REDUNDANT OR IRRELEVANT WHEN THE CHIEF INQUISITOR ANNOUNCED THE END OF A PARTICULAR LINE OF QUESTIONING LADY THATCHER RETORTED GOOD GETTING A LAUGH FROM SPECTATORS THE INQUIRY HAS NO PROSECUTORIAL POWERS AND MOST OF THE TESTIMONY CAN'T BE USED IN CRIMINAL COURT IT WILL CULMINATE IN A REPORT TO THE GOVERNMENT THE MOSTAWAITED QUESTION OF THE DAY WAS WHETHER LADY THATCHER LIED TO PARLIAMENT IN THE LATE 1980S BY SAYING THAT HER GOVERNMENT HADN'T CHANGED OR RELAXED ITS STRINGENT 1984 POLICY AGAINST EXPORTING ARMS TO IRAQ IN FACT THE POLICY HAD BEEN ALTERED BUT LADY THATCHER INSISTED SHE HADN'T KNOWN THAT AND SHE SAID IN ANY CASE THAT THE POLICY CHANGE WAS TECHNICAL AND UNIMPORTANT THE MAIN TENET OF THE POLICY A PROHIBITION AGAINST THE SALE OF LETHAL ARMS TO IRAQ REMAINED UNALTERED AND SHE REPEATEDLY EMPHASIZED UNVIOLATED WHILE HER GOVERNMENT APPROVED THE EXPORT TO IRAQ OF TOOLS TO MAKE WEAPONS IT APPARANTLY DIDN'T APPROVE THE SALE OF ANY ACTUAL ARMS ORIGINALLY THE POLICY HAD PROHIBITED THE SALE OF WEAPONS TO IRAQ OR IRAN TO AVOID ANY ESCALATION OF THE WAR BETWEEN THE TWO COUNTRIES THE POLICY CHANGE IN 1988 LADY THATCHER INSISTED WAS MERELY DESIGNED TO ACKNOWLEDGE THE END OF THAT WAR NOT TO LIBERALIZE ARMS EXPORTS CALLING THE CHANGE INSIGNIFICANT SHE SAID SHE COULD UNDERSTAND WHY SUBORDINATES FAILED TO INFORM HER OF IT STILL SHE CONCEDED THAT THEY SHOULD HAVE AND PROSECUTORS INTRODUCED AMPLE EVIDENCE THAT THE CHANGE IN POLICY USHERED IN A PERIOD OF LIBERALIZED EXPORTS TO IRAQ LADY THATCHER ALSO CONCEDED THAT HER GOVERNMENT POSSESSED INFORMATION LINKING MATRIXCHURCHILL A BRITAINBASED BUT IRAQIOWNED COMPANY TO THE IRAQI WAR MACHINE AT THE TIME THAT IT APPROVED MATRIXCHURCHILL EXPORTS TO IRAQ BUT SHE SAID THE INTELLIGENCE SOMEHOW FAILED TO MAKE ITS WAY TO THE COMMITTEE CONSIDERING MATRIXCHURCHILL'S EXPORT APPLICATION THAT FAILURE SHE SAID WAS ABSURD NOT EVERYONE IS CONVINCED OF THE INNOCENCE OF SUCH MISTAKES FOR ONE THING THE SAME GOVERNMENT THAT INITIALLY EXPRESSED SHOCK ABOUT THE MATRIXCHURCHILL EXPORTS LATER CONCEDED IT HAD EMPLOYED A COMPANY EXECUTIVE TO SPY ON IRAQ CRITICS ALSO CONTEND THAT LADY THATCHER'S GOVERNMENT PRIVATELY CATERED TO THE WISHES OF BRITAIN'S DEFENSE INDUSTRY TO EARN BIG PROFITS FROM EXPORTS TO IRAQ SUCH THEORIES HAVE GAINED CREDENCE FROM CORRESPONDENCE SHOWING LADY THATCHER'S SUBORDINATES CALCULATEDLY DECLINED TO INFORM PARLIAMENT OR THE PUBLIC OF THE ALTERED EXPORT POLICY LADY THATCHER DISMISSED THOSE ISSUES AS UNDESERVING OF PARLIAMENTARY OR PUBLIC ATTENTION 9312090134 931209 WEDNESDAY'S MARKETS INDUSTRIALS CLIMB 1565 TO A HIGH BUT OTHER INDEXES LOSE GROUND BONDS STEADY DOLLAR IS UP BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL A SURGE IN ECONOMICALLY SENSITIVE STOCKS PROPELLED THE DOW JONES INDUSTRIAL AVERAGE TO ITS SECONDCONSECUTIVE RECORD BOND PRICES HELD STEADY AND THE DOLLAR ROSE THE INDUSTRIAL AVERAGE JUMPED 1565 POINTS TO 373453 BUT STANDARD & POOR'S 500STOCK INDEX FELL 047 TO 46629 AND THE NASDAQ COMPOSITE INDEX LOST 146 TO 76789 ANALYSTS SAID INVESTORS SHIFTED FUNDS INTO STOCKS OF COMPANIES THAT WILL BENEFIT MOST FROM AN IMPROVING ECONOMY ADVANCING BASICMETALS STOCKS IN PARTICULAR FED THE GAINS AMONG ECONOMICALLY SENSITIVE SHARES ALCOA JUMPED 3 1/4 TO 72 1/2 AND WAS RESPONSIBLE FOR NEARLY HALF OF THE INDUSTRIAL AVERAGE'S GAIN PRECIOUS METALS ALSO ROSE WITH GOLD FOR FEBRUARY DELIVERY GAINING 640 TO 38570 AN OUNCE IF THE ECONOMY DOES HEAT UP SOME OF THE COMMODITIES COMPANIES THAT HAVE UNDERPERFORMED BECAUSE OF LOW COMMODITIES PRICES CAN DO QUITE WELL IF CAPACITY BECOMES CONSTRAINED OR IF PRICES START TO PICK UP SAID THOMAS MCMANUS A US MARKET STRATEGIST AT MORGAN STANLEY EUROPEAN STOCK MARKETS JUMPED ON EXPECTATIONS OF LOWER INTEREST RATES AND HOPES OF A SUCCESSFUL CONCLUSION TO WORLD TRADE TALKS GERMAN FRENCH AND BRITISH STOCKS GAINED FROM 12 TO 15 WITH LONDON AND FRANKFURT HITTING RECORDS NEARLY EVERYBODY IS SURE THAT A NEW TRADE AGREEMENT WILL BE SIGNED BEFORE THE DEC 15 DEADLINE SAID MICHEL ALLANTE A FRENCH EQUITY TRADER AT BANQUE NATIONALE DE PARIS IN PARIS IN ASIA THE HONG KONG STOCK MARKET EDGED UP TO ITS SECONDCONSECUTIVE RECORD MEANWHILE JAPANESE STOCKS FELL 23 ON CONCERN THAT JAPAN'S GOVERNING COALITION COULD UNRAVEL ON THE CONTENTIOUS ISSUE OF ALLOWING RICE IMPORTS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 069 TO 10903 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3125 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1065 ISSUES ROSE AND 1001 FELL BOND PRICES HELD STEADY THE TREASURY'S BENCHMARK 30YEAR ISSUE WAS UNCHANGED TO YIELD 616 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17075 MARKS AND 10888 YEN COMPARED WITH 17020 MARKS AND 10745 YEN TUESDAY 9312090133 931209 WHO'S NEWS TETRA TECHNOLOGIES INC TETRA TECHNOLOGIES INC THE WOODLANDS TEXAS STEPHEN T HARCROW WAS NAMED TO THE BOARD OF THE CHEMICAL COMPANY MR HARCROW 47 YEARS OLD RECENTLY RETIRED AS A SENIOR VICE PRESIDENT OF BAKER HUGHES INC HIS APPOINTMENT BRINGS THE BOARD'S MEMBERSHIP TO SIX 9312090132 931209 TANDY UNIT ADDS 4 SUPERSTORES FORT WORTH TEXAS TANDY CORP SAID ITS COMPUTER CITY DIVISION OPENED FOUR NEW SUPERSTORES BRINGING TO 17 THE NUMBER OF SUPERSTORES OPENED BY THE COMPUTER RETAILER IN 1993 COMPUTER CITY OPERATES 37 SUPERSTORES INCLUDING THREE IN EUROPE PLUS THREE SMALLER OUTLETS 9312090131 931209 MEDICAL CARE PLANS TO SHOW BOOKS TO SURGICAL CARE BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS MEDICAL CARE AMERICA INC TAKING ANOTHER STEP IN THE DIRECTION OF A MERGER ITS MANAGEMENT ISN'T EAGER FOR AGREED TO SHOW ITS BOOKS TO SUITOR SURGICAL CARE AFFILIATES INC MEDICAL CARE ALSO DISCLOSED THAT IT HAS BEEN APPROACHED BY OTHER PARTIES INTERESTED IN A TRANSACTION THESE OTHER POTENTIAL SUITORS CAME FORWARD AFTER SURGICAL CARE PROPOSED IN OCTOBER TO ACQUIRE MEDICAL CARE FOR NEARLY 1 BILLION IN STOCK MEDICAL CARE BASED IN DALLAS AND SURGICAL CARE BASED IN NASHVILLE TENN OPERATE OUTPATIENT SURGERY CENTERS THE INCREASING WILLINGNESS BY MEDICAL CARE'S BOARD TO HAVE SERIOUS CONTACTS WITH SURGICAL CARE IS A RESPONSE TO HEAVY LOBBYING BY A SIZABLE NUMBER OF MEDICAL CARE SHAREHOLDERS UNHAPPY WITH THE COMPANY'S REBUFF OF SURGICAL CARE WE'RE PLEASED AS PUNCH SO FAR A PERSON CLOSE TO MAJOR MEDICAL CARE SHAREHOLDERS SAID OF THE BOARD'S DECISION TO MAKE ITS BOOKS AVAILABLE THEY JUST BATTED THE BALL QUITE FIRMLY INTO SURGICAL CARE'S COURT A SPOKESMAN FOR SURGICAL CARE SAID THE COMPANY WAS PLEASED WITH MEDICAL CARE'S MOVE MEDICAL CARE HAS FOR SOMETIME SAID IT WOULD CONSIDER A SWEETENED BID BUT WHAT ITS REACTION WOULD BE IS UNCLEAR THE COMPANY SPECIFICALLY REITERATED THAT SURGICAL CARE'S OCTOBER OFFER WASN'T ACCEPTABLE IT SEEMS LIKE THEY'RE TAKING THE SAFE ROUTE JOHN F HINDELONG A HEALTHSERVICES ANALYST AT DONALDSON LUFKIN & JENRETTE INC SAID ABOUT MEDICAL CARE'S DIRECTORS IT DOESN'T SEEM THEY'RE ANY MORE INTERESTED IN MERGING THAN THEY WERE BEFORE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MEDICAL CARE'S STOCK FELL 375 CENTS TO CLOSE AT 22125 A SHARE SURGICAL CARE'S STOCK ROSE 125 CENTS TO CLOSE AT 1650 A SHARE MEDICAL CARE SAID ITS BOARD DECIDED TO CONTINUE INVESTIGATING A NUMBER OF ALTERNATIVES INCLUDING A BUSINESS COMBINATION AND A SALE OF ASSETS THE COMPANY REFUSED TO IDENTIFY THE OTHER PARTIES THAT HAVE APPROACHED IT NOR WOULD IT SAY WHAT TYPES OF TRANSACTIONS THEY ARE INTERESTED IN ONE OPTION WOULD BE FOR MEDICAL CARE TO ATTEMPT TO SELL ITS STRUGGLING HOMEINFUSION UNIT WHICH IT ACQUIRED A LITTLE MORE THAN A YEAR AGO HOMEINFUSION SERVICES ALLOW PATIENTS TO GIVE THEMSELVES INTRAVENOUS MEDICATIONS AT HOME BEFORE MEDICAL CARE'S BOARD MET YESTERDAY ONE OF ITS MEMBERS JAMES M SWEENEY RESIGNED IN A WRITTEN STATEMENT MR SWEENEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MCGAW INC OF IRVINE CALIF CITED THE FACT THAT SOME COMPETITORS OF MEDICAL CARE ARE CUSTOMERS OF A NEW MCGAW BUSINESS THAT MIXES INTRAVENOUS MEDICINES MR SWEENEY SAID THOSE CUSTOMERS COMPLAINED ABOUT HIS BEING A MEDICAL CARE DIRECTOR RESIGNING HIS BOARD SEAT HOWEVER ALSO MEANS MR SWEENEY WON'T HAVE TO DEAL WITH PRESSURE FROM MEDICAL CARE SHAREHOLDERS HE COULDN'T BE REACHED FOR COMMENT 9312090130 931209 FREEPORTMCMORAN EXPANDS NEW ORLEANS FREEPORTMCMORAN COPPER & GOLD INC SAID IT WOULD SPEND 140 MILLION TO EXPAND PRODUCTION AT ITS IRIAN JAYA INDONESIA OPERATIONS TO 115000 METRIC TONS OF ORE A DAY THE MINING CONCERN 72OWNED BY FREEPORTMCMORAN INC SAID IT EXPECTS TO COMPLETE ITS EXPANSION BY THE END OF 1995 BEGINNING IN 1996 ANNUAL PRODUCTION FROM THE EXPANDED OPERATIONS WILL BE ABOUT 11 BILLION POUNDS OF COPPER AND 15 MILLION OUNCES OF GOLD THE COMPANY SAID 9312090129 931209 LITTON SPINOFF FIRM TO ACQUIRE STAKE IN OILSERVICES UNIT BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF LITTON INDUSTRIES INC SAID THE NONDEFENSE COMPANY IT IS SPINNING OFF PLANS TO PAY DRESSER INDUSTRIES INC 558 MILLION IN CASH AND NOTES TO ACQUIRE DRESSER'S 295 OF WESTERN ATLAS INTERNATIONAL INC AN OIL SERVICES VENTURE LITTON OWNS THE OTHER 705 OF THE UNIT WHICH LITTON SAID WOULD BECOME PART OF THE NONDEFENSE COMPANY WESTERN ATLAS INC IT IS SPINNING OFF THE STAKE ACQUISITION WILL OCCUR AFTER THE SPINOFF WHICH IS EXPECTED TO BE COMPLETED BY YEAR'S END LITTON FORMED THE HOUSTONBASED WESTERN ATLAS INTERNATIONAL VENTURE WITH DALLASBASED DRESSER IN 1987 IN PART TO BOLSTER BUSINESS IN THE SLUMPING OILFIELD SERVICES MARKET DRESSER CHAIRMAN AND CHIEF EXECUTIVE JOHN J MURPHY SAID THE SALE GIVES HIS COMPANY GREATER LIQUIDITY AND FLEXIBILITY IN A PERIOD OF CONTINUING CONSOLIDATION AND CHANGE IN THE OIL FIELD SERVICE SECTOR LITTON WILL PAY 358 MILLION IN CASH AND 200 MILLION IN SUBORDINATED SEVENYEAR NOTES BEARING 75 INTEREST FOR THE STAKE LITTON IS A PROVIDER OF RESOURCE EXPLORATION SERVICES INDUSTRIAL AUTOMATION SYSTEMS AND ELECTRICAL AND DEFENSE SYSTEMS DRESSER WHICH SUPPLIES PRODUCTS AND SERVICES TO THE OIL INDUSTRY SAID IT EXPECTS TO POST A GAIN OF ABOUT 150 MILLION WHEN THE TRANSACTION IS COMPLETED EARLY NEXT YEAR ALSO LITTON POSTED NET INCOME OF 35 MILLION OR 75 CENTS A SHARE FOR THE FIRSTQUARTER ENDED OCT 31 A YEAR EARLIER IT HAD A NET LOSS OF 744 MILLION OR 184 A SHARE AFTER 1171 MILLION OF CHARGES FOR RETIREMENT HEALTH BENEFITS AT CONTINUING AND DISCONTINUED OPERATIONS EARNINGS FROM CONTINUING OPERATIONS INCLUDING ITS ADVANCED ELECTRONICS MARINE ENGINEERING AND INTERCONNECT PRODUCTS UNITS ROSE ABOUT 7 TO 259 MILLION FROM 242 MILLION A YEAR EARLIER REVENUE FELL 37 TO 841 MILLION FROM 8736 MILLION LITTON ALSO SAID IT PLANS TO TAKE AN AFTERTAX CHARGE OF ABOUT 172 MILLION IN THE FISCAL SECONDQUARTER TO ADJUST THE VALUE OF CERTAIN ASSETS OF WESTERN ATLAS THE COMPANY SAID THAT WHILE THE UNIT HAS INVESTED HEAVILY IN RESEARCH DEVELOPMENT AND CAPITAL EQUIPMENT OVER THE LAST FIVE YEARS THE RAPID ACCEPTANCE OF THE NEW TECHNOLOGIES HAS CAUSED OBSOLESCENCE OF OLDER SEISMIC SHIPS WIRELINE TOOLS AND DATAPROCESSING EQUIPMENT FASTER THAN WE ANTICIPATED IN ADDITION THE OILFIELD INFORMATION BUSINESS OF WESTERN ATLAS' CORE LABORATORIES DIVISION IS DECLINING IN IMPORTANCE LITTON SAID AND WE ARE ADJUSTING THEREFORE THE ASSETS OF CORE LABORATORIES TO THEIR EXPECTED REALIZABLE SALES VALUE 9312090128 931209 HEALTH ACTIVE SENIORS DO LAPS OF THE MALL THEN COOL DOWN BY EATING FAST FOOD BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S JUST NO WAY AROUND IT FOR THE EARLY MORNING WALKING CLUB AT SOUTH FLORIDA'S PEMBROKE LAKES MALL A ONEMILE WORKOUT MEANS A TRIP THROUGH THE FOOD COURT PAST BLOOM'S NY CAFE AND THE ORIGINAL COOKIE CO EVEN THOUGH IT'S ONLY 8 AM AND MOST STORES IN THE MALL DON'T OPEN FOR TWO MORE HOURS SOME REVENUEHUNGRY VENDORS ARE COOKING UP SPECIALS TO ATTRACT THE WALKERS THEY ARE ALREADY THERE PREPARING THE FOOD SO WHY NOT MAKE A FEW SALES ASKS KEITH FOXE OF THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS THE VENDORS ARE REAPING AN UNCONSIDERED BENEFIT OF THE WALKERS BEING THERE THE WALKERS ON THE OTHER HAND HAVE CONSIDERABLY LESS TO GAIN EXCEPT GIRTH INDEED MOST OF THE EARLYMORNING CROWD ARE ELDERLY PEOPLE WHO COME TO THE MALLS SEEKING A HEALTHIER LIFESTYLE AS THE WALKERS HAVE MULTIPLIED OVER THE PAST FEW YEARS MORE MALLS IN CONJUNCTION WITH LOCAL HOSPITALS HAVE BEEN SPONSORING WALKING CLUBS AND TO BOOST MEMBERSHIP MALL MANAGEMENT ENCOURAGES RETAILERS TO OFFER SPECIAL FOOD DISCOUNTS PROMPTING SOME STROLLERS TO TOP OFF THEIR WORKOUTS WITH A DOUGHNUT OR CROISSANT NOT ALL FOOD STORES PUSH FATTY FARE OF COURSE BUT SWEETS SEEM TO HOLD A STRONG APPEAL IT'S DEVASTATING SAYS 64YEAROLD RUTH ROTENBERG A PEMBROKE LAKES WALKER WHO TRIES TO AVOID THE FOOD COURT UNTIL SHE'S FINISHED HER LAPS YOU SMELL THE CHOCOLATE COOKIES AND THE MUFFINS IT'S TOO MUCH AGREES PHYLLIS WALD 62 THAT COOKIE SHOP REALLY GETS YOU DOWN YOU PASS BY AND OH BOY IS IT TOUGH WITH SALES DROPPING 26 IN 1991 AND RISING ONLY 06 IN 1992 FASTFOOD RESTAURANTS IN MALLS ARE SEARCHING FOR MORE CUSTOMERS FOR EXAMPLE WHEN THEY SAW AFTERMOVIE CROWDS LINGERING THEY STARTED STAYING OPEN TO ACCOMMODATE THEM SO WHEN THEY SAW THE WALKERS HANGING AROUND IN THE MORNING THEY STARTED SERVING EARLIER SOME AS EARLY AS 6 AM THE COMPETITION FOR THE WALKERS' BUSINESS HAS BECOME SO INTENSE THAT RESTAURANTS AND STORES ARE BATTLING EACH OTHER WITH PROMOTIONAL DISCOUNTS THEY REALLY LIKE OUR TWOFORONE SPECIALS SAYS A MANAGER OF THE COOKIE COMPANY IN OMAHA NEBRASKA'S CROSSROADS MALL THE COOKIE STORE FEEDS ABOUT 30 EXERCISERS A DAY THEY THINK IT DOESN'T MATTER IF THEY EAT THE COOKIE AS LONG AS THEY WALK SHE SAYS THEY COME TO US AND THEN HIT UP THE ARBY'S DOWN THE WAY SOME SAVVY RETAILERS HAVE TAILORED THEIR PROMOS TO THE OLDER CROWD OFFERING SUCH FREEBIES AS BINGO CARDS TUESDAY IS THE MUCHANTICIPATED BINGO DAY FOR WALKERS AT THE MONROEVILLE MALL NEAR PITTSBURGH DURING THE WEEK WALKERS COLLECT PLAYING CARDS SOMETIMES 20 OR MORE BY MAKING PURCHASES AT THE FOOD COURT ONE 50 CENT CUP OF COFFEE FOR EXAMPLE MERITS ONE CARD AND COME TUESDAY GUESS WHAT THE WINNERS WALK AWAY WITH GIFT CERTIFICATES AT THE FOOD COURT BUSINESS HAS BEEN DOWN FOR THE LAST FEW YEARS SAYS JOHN PCOLAR MANAGER OF MONROEVILLE'S SBARRO ITALIAN EATERY NOW WE HAVE A CROWD OF PEOPLE WHO COME CONGREGATE AND STAY AND THEY ARE LOOKING FOR SPECIALS THERE ARE SO MANY VENDORS COMPETING FOR THE WALKERS' BUSINESS THAT MANY OF THEM SERVE THE SAME SUPERLOWPRICED BREAKFAST SPECIAL AT PUPAGOGO FOR EXAMPLE YOU CAN GET TWO EGGS HOMEFRIES AND TOAST FOR 129 AT THE POTATO SACK YOU GET THE SAME THING PLUS BACON HAM OR SAUSAGE FOR 249 THE MANAGER THERE SAYS SALES HAVE RISEN ALMOST 20 DURING THE LAST TWO YEARS DUE TO EARLYMORNING EATERS OF COURSE THOSE SPECIALS DON'T ALWAYS TRANSLATE INTO HUGE SALES AND SOME RETAILERS ARE RETHINKING THEIR DECISION TO OPEN EARLY KATHY BUMGARDNER MANAGER OF ARBY'S IN THE OMAHA CROSSROADS MALL COMPLAINS THAT IT SELLS ONLY ABOUT 50 CUPS OF COFFEE AT 38 CENTS A CUP WITH FREE REFILLS NO LESS AND MAYBE SOME ICED TEA AND ORANGE JUICE EVERY DAY EVEN THOUGH THE DOORS OPEN BY 7 AM IF TOAST BAGEL AND MUFFIN SALES DON'T PICK UP BY JANUARY WE MAY DECIDE IT'S NOT WORTH IT TO OPEN THIS EARLY SHE SAYS THAT WOULDN'T NECESSARILY BOTHER NUTRITIONISTS OR SENIORCITIZEN ADVOCATES FREQUENTING THE FOODCOURT JOINTS CAN DEFEAT THE WHOLE PURPOSE OF EXERCISING SAYS SUSAN ELERDING A NUTRITIONIST AT SAN FRANCISCO'S ST MARY'S HOSPITAL AND MEDICAL CENTER YOU'LL JUST BE DUMPING A LOT OF FAT INTO YOUR BODY ECHOES JOE BOYS A SPOKESPERSON WITH THE AMERICAN ASSOCIATION OF RETIRED PERSONS IF THERE'S ANYTHING ANYBODY COULD DO TO GET THE FOOD COURTS TO OFFER HEALTHIER FARE IT'D BE BETTER MEANWHILE THE MALL/HOSPITAL SPONSORS ARE INVITING NUTRITIONISTS TO WEIGH THE WALKERS TAKE THEIR BLOOD PRESSURE AND MOST IMPORTANTLY LECTURE ABOUT HEALTHY EATING UNFORTUNATELY THE TALKS ARE OFTEN HELD IN THE ROOMY FOOD COURTS WHERE AROMAS ACCOMPANY THE SERMON MS ELERDING SAYS SHE RECENTLY EXPLAINED TO A GROUP OF SAN FRANCISCO SENIORS AT STONESTOWN GALLERIA THAT ONE BLUEBERRY MUFFIN HAS ABOUT 112 CALORIES OR 22 MINUTES OF HUFFING AND PUFFING AROUND THE MALL I WOULDN'T MAKE THESE THINGS A PRACTICE I'D MAKE THEM A SPECIAL OCCASION SHE SUGGESTED THE WALKERS LISTENED AND NODDED SHE REMEMBERS CROISSANTS AND DOUGHNUTS IN THEIR HANDS MALL MANAGEMENT DOESN'T SEE A PROBLEM IF THEY'RE GOING TO GET A COOKIE I MEAN THEY'RE GOING TO GET A COOKIE SAYS NANCY BARTNICKI MARKETING DIRECTOR OF OMAHA'S CROSSROADS MALL AND AT LEAST THESE PEOPLE ARE MAKING THE EFFORT TO GET OUT AND EXERCISE SAYS MR BOYS WITH THE AARP ALMOST 80 OF THE POPULATION OVER 50 YEARS OLD IS SEDENTARY IF IT TAKES THE FOOD VENDORS TO ENTICE MORE WALKERS THEN SO BE IT HE SAYS MALL OFFICIALS TAKE THE WALKERS' HEALTH DILEMMA IN STRIDE KNOWING THE CROWDS ARE GOOD FOR BUSINESS IT IS KIND OF IRONIC I GUESS LAUGHS LAURA WHEELER PEMBROKE LAKES' MARKETING MANAGER I SUPPOSE THERE COULD BE WARNINGS LIKE STAY AWAY FROM THE CARAMEL CORN' BUT YOU GET A COUPLE OF MILES IN AND THEN YOU'RE REALLY HUNGRY 9312090127 931209 BUSINESS BRIEF ENRON CORP BECHTEL AND GM UNITS JOIN VENTURE TO BUILD INDIA PLANT ENRON CORP HOUSTON SAID IT SIGNED A JOINTVENTURE AGREEMENT TO DEVELOP AND MANAGE AN ELECTRIC POWER PLANT IN INDIA ABOUT 100 MILES SOUTH OF BOMBAY THE NATURAL GAS COMPANY SAID THE TOTAL VALUE OF THE PROJECT TO BE DEVELOPED IN TWO PHASES IS 25 BILLION ENRON'S SHARE OF THE 900 MILLION FIRST PHASE TO BEGIN CONSTRUCTION IN 1994 IS 135 MILLION THE PLANT A 2015MEGAWATT GASFIRED COMBINED CYCLE FACILITY WILL BE DESIGNED AND BUILT BY A UNIT OF BECHTEL GROUP INC SAN FRANCISCO ANOTHER JOINT VENTURE PARTNER A UNIT OF GENERAL ELECTRIC CO BASED IN FAIRFIELD CONN WILL SUPPLY EQUIPMENT 9312090126 931209 LOTUS AND IBM END A SECRET DEAL AND LAUNCH ANOTHER BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA LOTUS DEVELOPMENT CORP FREED ITSELF FROM A SECRET AGREEMENT IN WHICH IT GAVE UP A PORTION OF REVENUES FROM ITS POPULAR NOTES SOFTWARE TO INTERNATIONAL BUSINESS MACHINES CORP IN RETURN FOR THE LOST REVENUES TO IBM LOTUS HAS AGREED TO DEVELOP MORE SOFTWARE THAT RUNS ON OS/2 A PERSONAL COMPUTER OPERATING SYSTEM THAT IS IMPORTANT TO IBM'S FUTURE SALES OF NOTES THIS YEAR WILL DOUBLE TO ABOUT 100 MILLION ANALYSTS SAY TERRY QUINN AN ANALYST AT FURMAN SELZ INC IN NEW YORK ESTIMATES THAT IBM UNDER THE PRIOR AGREEMENT GOT AS MUCH AS ONETHIRD OF NOTES' SALES A LOTUS INSIDER PUT THE NUMBER AT CLOSER TO 25 WHILE OTHERS INCLUDING AN IBM MANAGER SAID THAT THE EFFECTIVE RATE WAS EVEN LOWER AFTER FACTORING IN RELATED PAYMENTS BETWEEN THE TWO COMPANIES THE RENEGOTIATION OF THE ARRANGEMENT ACCORDING TO PEOPLE FAMILIAR WITH ITS TERMS MAY BOOST REVENUES AND PROFITS FOR LOTUS SOME ANALYSTS THINK NOTES SALES COULD REACH 200 MILLION NEXT YEAR SUGGESTING THAT LOTUS WOULD GET ALMOST 60 MILLION IN REVENUE THAT OTHERWISE WOULD HAVE GONE TO IBM ACCORDING TO MR QUINN BUT IT WASN'T CLEAR HOW MUCH OF THAT MONEY WOULD BE ABSORBED BY THE OS/2 WORK AND OTHER COLLABORATIONS BETWEEN IBM AND LOTUS THE NEW TERMS FOLLOW A TENSE FACEOFF BETWEEN THE TWO COMPANIES EARLIER THIS YEAR PEOPLE FAMILIAR WITH THE SITUATION SAID IBM WAS STRONGARMED BY LOTUS INTO REVERSING AN AGREEMENT THAT WAS SIGNED BEFORE NOTES SALES TOOK OFF SAYS MR QUINN BUT HE ADDS THAT BOTH COMPANIES COME AWAY FROM THE NEW DEAL WITH EXACTLY WHAT THEY WANTED NOTES THE VANGUARD OF A NEW CLASS OF SOFTWARE DESIGNED FOR USE BY GROUPS OF PEOPLE HAS HAD AN IMPACT ON LOTUS AND THE INDUSTRY BEYOND THE SIZE OF ITS SALES IT HAS RESURRECTED LOTUS'S REPUTATION FOR INNOVATION AND FUELED A HUGE RUNUP IN ITS SHARE PRICE IT HAS ALSO ATTRACTED SCORES OF SMALLER COMPANIES THAT ARE WRITING PROGRAMS TO WORK WITH NOTES AS EVIDENCED BY THE HUGE TURNOUT OF SOFTWARE WRITERS AT A TECHNICAL CONFERENCE HERE LAST MONTH LOTUS PUBLICLY RENEWED ITS COMMITMENT TO OS/2 AND SAID IT WOULD PRODUCE A SERIES OF NEW OS/2 PRODUCTS BUT DIDN'T MENTION THE PRIVATE NOTES DEAL LOTUS WILL INCUR SOME ADDITIONAL BUT UNDISCLOSED DEVELOPMENT COSTS JIM P MANZI LOTUS'S CHIEF EXECUTIVE SAID LATE YESTERDAY WE HAVE AN EXTRAORDINARILY GOOD WORKING RELATIONSHIP WITH IBM THAT GOT EVEN BETTER THREE WEEKS AGO THE NEW AGREEMENT SIMPLY CLARIFIES TERMS AND CONDITIONS AND WE'RE COMMITTING NEW RESOURCES TO OS/2 LOTUS HAD QUIETLY SIGNED AWAY A PORTION OF NOTES REVENUE AND PROFIT WHEN IBM CANCELED ITS OWN OFFICE SOFTWARE SUITE CALLED OFFICEVISION TWO YEARS AGO INSIDERS SAID IN RETURN IBM WAS TO SELL NOTES THROUGH ITS SALES FORCE BUT THE AGREEMENT WAS STRUCTURED SUCH THAT THE IBM SALES FORCE HAD LITTLE INCENTIVE TO DO SO AND IT ASSURED THE GIANT COMPUTER MAKER A CUT EVEN FROM NOTES SALES MADE BY LOTUS LOTUS APPARENTLY SIGNED THE DEAL BECAUSE IT HOPED AFFILIATION WITH IBM WOULD GIVE NOTES WHICH WASN'T YET PROFITABLE A HIGHER PROFILE AMONG BIG CORPORATE CUSTOMERS BUT OVER THE PAST TWO YEARS NOTES SALES HAVE EXPLODED DOUBLING TO 100 MILLION THIS YEAR AND THEY MAY NEARLY DOUBLE AGAIN NEXT YEAR ANALYSTS SAY IBM'S WILLINGNESS TO SACRIFICE THE REVENUES ALSO SHOWS HOW IMPORTANT IT IS FOR THE TROUBLED COMPUTER GIANT TO GAIN BACKING FOR OS/2 IBM AND OS/2 HAVE BEEN ECLIPSED BY MICROSOFT CORP'S WINDOWS OPERATING SYSTEM ALTHOUGH OS/2 HAS BEEN MAKING SOMETHING OF A COMEBACK LATELY THERE IS RELATIVELY LITTLE SOFTWARE THAT ENABLES THE SYSTEM TO PERFORM PRACTICAL APPLICATIONS SUCH AS WRITING OR ACCOUNTING IN AN UPTODATE FASHION THERE'S NO GUARANTEE THAT LOTUS'S SUPPORT WILL ENSURE OS/2'S SUCCESS WHEN OS/2 WAS FIRST UNVEILED SIX YEARS AGO LOTUS AND OTHER SOFTWARE LEADERS VOWED SUPPORT AND DEVELOPED PRODUCTS FOR OS/2 BUT BOTH IBM AND LOTUS WERE TRAMPLED BY MICROSOFT'S WINDOWS LOTUS HAS MADE SOME MISTAKES WITH NOTES TO BE SURE IT STILL HASN'T FIGURED OUT THE RIGHT PRICING MODEL SOME ANALYSTS SAY AND A VERSION OF NOTES THAT WILL RUN WITH NOVELL INC'S NETWARE WHICH HOLDS MORE THAN 60 OF THE MARKET FOR NETWORK OPERATING SOFTWARE HAS SLIPPED ITS DELIVERY DATE BY SEVERAL WEEKS AND WON'T BE AVAILABLE TO CUSTOMERS BEFORE FEB 25 LOTUS INSIDERS SAY EARLIER THE COMPANY HAD PROMISED TO SHIP THE PRODUCT BY THE END OF THE YEAR A NOVELL NETWARE VERSION OF NOTES WILL SHARPLY EXPAND THE POTENTIAL MARKET FOR NOTES ANALYSTS SAY AND NOTES STILL HAS NO DIRECT COMPETITION FROM MICROSOFT OR ORACLE CORP NOTES HAS A TWOYEAR LEAD IN THE MARKETPLACE SAYS FURMAN SELZ'S MR QUINN THE DELAY OF THE NETWARE VERSION OF NOTES WON'T MATERIALLY AFFECT REVENUE SAYS ROBERT WEILLER LOTUS SENIOR VICE PRESIDENT WHEN A NEW 123 RELEASE GETS DELAYED THAT CAN CLIP 30 MILLION IN SALES IN JUST A FEW WEEKS HE SAYS BUT THERE'S A MUCH LONGER SALES CYCLE WITH NOTES MR WEILLER WOULDN'T DISCUSS THE AGREEMENT WITH IBM EXCEPT TO SAY THAT IT ISN'T SURPRISING THAT FINANCIAL TERMS OF AGREEMENTS CHANGE AS THE MARKET CHANGES HE ALSO SAID THAT THE AGREEMENT IS BROADER AND MORE COMPLICATED THAN IS PUBLICLY KNOWN BUT WOULDN'T GIVE OTHER DETAILS I CAN ALSO SAY ITS SOMETHING WE'RE BOTH HAPPY WITH A VERSION OF NOTES FOR THE UNIX OPERATING SYSTEM HAS ALSO BEEN DELAYED BY SEVERAL MONTHS THE FIRST SUCH VERSION IS EXPECTED TO BE RELEASED DURING THE FIRST QUARTER AS WELL INSIDERS SAY THE DELAY WHILE NOT MATERIAL TO RESULTS HAS SLOWED DOWN PLANS BY A MAJOR CUSTOMER GENERAL MOTORS CORP TO DEPLOY NOTES OVERSEAS IN OFFICES AND HUNDREDS OF CAR DEALERSHIPS THE FLORIDA TECHNICAL CONFERENCE WHICH WAS OVERSUBSCRIBED SUGGESTED A SHIFT IN THE ECONOMIC MODEL FOR NOTES BECAUSE SO MANY COMPANIES ARE INVESTING IN THE DEVELOPMENT OF SOFTWARE THAT WORKS WITH NOTES CREATING A NEW INDUSTRY AROUND THE PRODUCT IT'S STARTING TO LOOK A LOT MORE LIKE AN OPERATING SYSTEM MODEL THAT IS SIMILAR IN SOME WAYS TO MICROSOFT'S WINDOWS OR NOVELL'S NETWARE SAID PAUL JOHNSON OF FIRST BOSTON CORP 9312090125 931209 CREDIT MARKETS BOND OFFERING BY ARGENTINA SETS PRECEDENTS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF A SINGLE DEAL COULD ILLUSTRATE HOW FAR THE WORLD'S INVESTORS WILL STRETCH FOR A YIELD TODAY ARGENTINA'S 1 BILLION GLOBALBOND OFFERING IS IT GLOBAL BONDS WHICH ARE ISSUED SIMULTANEOUSLY IN ALL THE WORLD'S MAJOR MARKETS UNTIL NOW WERE DOMINATED BY BLUECHIP ISSUERS SUCH AS THE WORLD BANK ARGENTINA'S OFFERING LAUNCHED YESTERDAY AND INCREASED IN SIZE FROM 750 MILLION ON BRISK DEMAND IS THE FIRST ISSUE OF JUNK BONDS TO CRACK THAT ELITE CLUB IT ALSO SETS OTHER PRECEDENTS IT IS THE FIRST GLOBALBOND OFFERING FROM A LATIN AMERICAN NATION MORE IMPORTANTLY IT MAY BE THE FIRST LATIN AMERICAN BOND OFFERING FROM A NATION OTHER THAN MEXICO TO BE WIDELY EMBRACED BY INVESTORS WHO DON'T SPECIALIZE IN DEVELOPING NATIONS SAY MONEY MANAGERS AND UNDERWRITERS THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT HAS EMBOLDENED MANY INVESTORS TO LOOK BEYOND MEXICO TO THE SECURITIES MARKETS OF OTHER LATIN AMERICAN COUNTRIES INCLUDING NOT ONLY ARGENTINA BUT ALSO VENEZUELA CHILE COLOMBIA AND BRAZIL HIGH COUPONS AVAILABLE IN THOSE BOND MARKETS ARE A POWERFUL LURE FOR INVESTORS WHO ARE PUT OFF WITH PUNY YIELDS IN MOST INDUSTRIALIZED NATIONS WITH THE BENCHMARK 30YEAR US TREASURY BOND YIELDING JUST 616 YESTERDAY BUYERS ARE WILLING TO TAKE ON GREATER RISKS TO BUOY THEIR RETURNS DEMAND FOR ARGENTINA'S OFFERING CLEARLY ILLUSTRATES THAT THERE IS A WHOLE NEW AWARENESS OF INVESTMENT OPPORTUNITIES IN LATIN AMERICA SAYS WAYNE LYSKI EXECUTIVE VICE PRESIDENT OF ALLIANCE CAPITAL MANAGEMENT LP A MUTUAL FUND WITH EXTENSIVE INVESTMENTS IN LATIN AMERICA BECAUSE ARGENTINA'S OFFERING OF NONCALLABLE 10YEAR NOTES IS GLOBAL FINAL YIELDS WON'T BE SET UNTIL TODAY BUT THE YIELD IS LIKELY TO BE SET AT 28 PERCENTAGE POINTS ABOVE THE US TREASURY'S 10YEAR NOTE OR ABOUT 846 SAYS PHILIP D BENNETT A DIRECTOR AT SALOMON BROTHERS INC ONE OF THE LEAD UNDERWRITERS THE BONDS ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE AND DOUBLEBMINUS BY STANDARD & POOR'S CORP BESIDES SALOMON MERRILL LYNCH & CO AND BANCO RIO DE LA PLATA SA OF ARGENTINA LED THE UNDERWRITING ARGENTINA'S DEAL IS ONLY THE LATEST IN A STREAM OF GLOBALBOND OFFERINGS THAT HAVE FLOODED THE WORLD'S MARKETS THIS YEAR SINCE THE WORLD BANK LAUNCHED THE FIRST GLOBAL BOND IN 1989 DOZENS OF CORPORATIONS AND GOVERNMENTS FROM ITALY TO PORTUGAL AND FROM MATSUSHITA ELECTRIC INDUSTRIAL CO TO AMERICAN EXPRESS CO HAVE JUMPED INTO THE MARKET SO FAR THIS YEAR ALONE THERE HAVE BEEN NEARLY 30 GLOBAL OFFERINGS THE MOST EVER ACCORDING TO SALOMON BROTHERS ISSUANCE IS LIKELY TO ACCELERATE IN 1994 INTERNATIONAL FINANCE EXPERTS SAY CHINA MEXICO COLOMBIA AND EVEN INDONESIA HAVE LATELY APPROACHED THE WORLD BANK FOR ADVICE ABOUT GLOBALBOND OFFERINGS MOST GLOBAL BONDS OUTSTANDING ARE DENOMINATED IN US DOLLARS THOUGH A NUMBER OF BIG OFFERINGS OF 1 BILLION OR MORE HAVE BEEN DENOMINATED IN YEN AND MARKS BY SELLING NOTES IN SEVERAL MARKETS AT ONCE ISSUERS TAP INTO BROADER DEMAND AND GARNER LOWER RATES THAN THEY WOULD GET BY SELLING IN A SINGLE MARKET ARGENTINA FOR EXAMPLE MAY SAVE AS MUCH AS 020 TO 030 PERCENTAGE POINT IN BORROWING COSTS BY SELLING ITS NOTES GLOBALLY RATHER THAN IN THE EUROPEAN MARKET WHERE IT PLACED BONDS IN THE PAST SAYS NIKOS PAPPAYLIOU A PORTFOLIO MANAGER AT GT CAPITAL MANAGEMENT ACCORDING TO KENNETH LAY DIRECTOR OF FINANCIAL OPERATIONS AT THE WORLD BANK GLOBAL NOTES ARE LIKELY TO BECOME EVEN MORE POPULAR AMONG BUYERS LOOKING TO INVEST IN DEVELOPING NATIONS ONE REASON IS THAT MUTUAL FUNDS AND OTHER BIG INSTITUTIONS OFTEN ARE RESTRICTED FROM BUYING SUCH RISKY INVESTMENTS UNLESS THEY MEET CERTAIN ELIGIBILITY STANDARDS THE INCENTIVE TO GO TO THE TROUBLE TO GET A CREDIT QUALIFIED AS ELIGIBLE IS GREATER WITH GLOBAL ISSUES BECAUSE THEY ARE VERY LIQUID OR EASY TO TRADE SAYS MR LAY DESPITE A HISTORY OF DEBT DEFAULTS AND HYPERINFLATION ARGENTINA IS GETTING THE BENEFIT OF THE DOUBT FROM INVESTORS ESPECIALLY US INVESTORS WHO BOUGHT ABOUT HALF OF YESTERDAY'S OFFERING ACCORDING TO SALOMON'S MR BENNETT A STRINGENT ECONOMIC PROGRAM CONSTRUCTED BY DOMINGO CAVALLO THE NATION'S HIGHLY RESPECTED ECONOMIC MINISTER HAS SHARPLY REDUCED INFLATION AND BROUGHT MONETARY AND FISCAL POLICY UNDER CONTROL ACCORDING TO A PRELIMINARY PROSPECTUS ARGENTINA'S ANNUAL INFLATION RATE PLUNGED TO 175 LAST YEAR FROM 13439 IN 1990 THE LIQUIDITY OF THE NOTES SOLD YESTERDAY WERE JUST THE THING TO ATTRACT NEW INVESTORS IN ARGENTINA SAYS ASHWIN VASAN A PORTFOLIO MANAGER AT OPPENHEIMER MANAGEMENT CORPORATION INVESTORS INCLUDED CORPORATEBOND FUNDS PENSION FUNDS AND PERHAPS EVEN INSURANCE COMPANIES ACCORDING TO UNDERWRITERS AND OTHER MONEY MANAGERS WHILE OPPENHEIMER ALREADY HAS OTHER ARGENTINE BOND HOLDINGS IT CONSIDERED THE GLOBAL NOTES AN IMPORTANT ADDITION TO ITS PORTFOLIO SAYS MR VASAN IT IS GOING TO BECOME THE BENCHMARK ARGENTINE BOND HE EXPLAINED MR VASAN IS COUNTING ON DECENT PRICE APPRECIATION FOR ALL ARGENTINE BONDS THANKS TO FAVORABLE FALLOUT FROM THE PASSAGE OF NAFTA FOR EXAMPLE MANY INVESTORS EXPECT DOLLARDENOMINATED MEXICAN DEBT TO BE UPGRADED TO INVESTMENT STATUS SOMETIME IN THE FIRST QUARTER OF NEXT YEAR SAYS MR PAPPAYLIOU OF GT CAPITAL WHEN THAT HAPPENS ARGENTINE BOND YIELDS ARE LIKELY TO DROP AS MUCH AS 050 PERCENTAGE POINT THUS BENEFITING INVESTORS WHO BUY NOW ALLIANCE'S MR LYSKI FIGURES INVESTORS IN ARGENTINA SHOULD LOOK FORWARD TO THE KINDS OF PRICE GAINS THAT INVESTORS IN MEXICO HAVE ENJOYED FOR INSTANCE INVESTORS WHO BOUGHT CEMENTOS MEXICANOS SA'S 8875 COUPON FIVEYEAR NOTES IN LATE SEPTEMBER HAVE SEEN THE PRICE OF THEIR BONDS RISE FOUR POINTS OR 40 FOR EVERY BOND OF 1000 FACE VALUE AS THE YIELD DROPPED TO 684 FROM 790 IN SPITE OF SUCH BRIGHT FORECASTS HOWEVER A NUMBER OF VETERAN INVESTORS IN LATIN AMERICA INCLUDING GT CAPITAL PILGRIM GROUP AND ALLIANCE PASSED UP ARGENTINA'S LATEST OFFERING THAT'S BECAUSE OTHER LESSLIQUID ARGENTINE GOVERNMENT BONDS ARE BETTER VALUES AND HAVE SIGNIFICANTLY HIGHER YIELDS ACCORDING TO GT CAPITAL'S MR PAPPAYLIOU WITH KEY INFLATION DATA LOOMING PRICES OF US TREASURY NOTES AND BONDS DRIFTED IN NARROW RANGES TO END LITTLE CHANGED THE BENCHMARK 30YEAR TREASURY BOND WAS UNCHANGED AT 101 2/32 TO YIELD 616 THE MARKET BEGAN THE DAY HEADING SLIGHTLY LOWER AMID LIGHT DEALER SELLING BUT THE EARLY DECLINES DIDN'T LAST LONG WE STARTED OFF TESTING THE LOW SIDE BUT WHEN WE COULDN'T GO THROUGH TUESDAY'S LOWS WE ENDED UP JUST BOUNCING AROUND SAID MATTHEW ALEXY GOVERNMENT BONDMARKET STRATEGIST AT CS FIRST BOSTON PRICES RECOVERED IN THE AFTERNOON FOLLOWING RELEASE OF THE FEDERAL RESERVE'S BEIGE BOOK REPORT WHICH PROVIDES ANECDOTAL EVIDENCE OF ECONOMIC ACTIVITY AROUND THE COUNTRY THE BEIGE BOOK HAD KEPT THE MARKET A LITTLE BIT CONCERNED THROUGH THE MORNING MR ALEXY SAID BUT IT BASICALLY SAID ECONOMIC ACTIVITY IS EXPANDING AT A MODERATE PACE AND IT CITED PRICES AS BEING VERY STABLE THAT WAS THE KIND OF OUTLOOK THE MARKET WAS ABLE TO DEAL WITH KEEPING ACTIVITY RESTRAINED WAS A RELUCTANCE TO MAKE BIG COMMITMENTS JUST BEFORE NEW INFLATION FIGURES ARE TO BE RELEASED INVESTORS FEAR INFLATION WHICH REDUCES THE VALUE OF FIXEDINCOME INVESTMENTS THE LABOR DEPARTMENT IS SLATED TO RELEASE THE NOVEMBER PRODUCERPRICE INDEX REPORT THIS MORNING FORECASTS CENTER ON A MODERATE 02 RISE FOR BOTH THE OVERALL INDEX AND THE CORE RATE WHICH IS THE INDEX EXCLUDING FOOD AND ENERGY TOMORROW WILL BRING FIGURES ON NOVEMBER CONSUMER PRICES FORECASTS CENTER ON AN INCREASE IN THE CPI OF 02 OVERALL AND 03 EXCLUDING FOOD AND ENERGY BUYERS WERE OUT IN FULL FORCE IN THE MUNICIPALBOND MARKET AGAIN AND THEY GOBBLED UP NEW SUPPLY THAT TOTALED MORE THAN 12 BILLION IN THE SECONDARY MARKET THERE WERE ENOUGH PURCHASES TO LIFT PRICES OF ACTIVELY TRADED ISSUES 1/8 TO 1/2 POINTMARKING THE FIFTH SESSION OF GAINS THE MAJOR DRIVING FORCE BEHIND THE RISE IS BUYING STEMMING FROM THE BELIEF THAT SUPPLY WILL DRY UP NEXT MONTH WHEN THERE ARE HEAVY BOND CALLS AND REINVESTMENTRELATED PURCHASES OF WHATEVER SECURITIES ARE AVAILABLE MUNI SPECIALISTS SAY THE HIGHLIGHT OF THIS SESSION'S NEWISSUE ACTIVITY WAS THE PRICING OF THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP LGAC SERIES 1993D AND 1993E BONDS BY A BEAR STEARNS GROUP THE ENTITY IS A PUBLICBENEFIT CORPORATION THE BONDS INITIALLY TOTALED 6009 MILLION AND HAD YIELDS THAT RANGED FROM 330 IN 1995 TO 550 IN 2014 BUT DEMAND WAS SO HEARTY THAT THE OFFERING'S SIZE WAS RAISED TO 7025 MILLION AT A REPRICING AND THERE WERE ACROSSTHEBOARD YIELD REDUCTIONS OF 30 TO 100 BASIS POINTS FOLLOWING THE REPRICING THE ISSUE INCLUDES 3372 MILLION SERIES 1993D NEWMONEY BONDS WHICH ARE PRICED TO YIELD FROM 320 IN 1995 TO 547 IN 2014 THE 3652 MILLION SERIES 1993E REFUNDING BONDS ARE PRICED TO YIELD FROM 425 IN 1999 TO 538 IN 2016 AND 2021 SO FAR THIS WEEK MORE THAN 3 BILLION OF MUNICIPAL SECURITIES HAS BEEN PRICED MOST MORTGAGE SECURITIES TRAWLED ALONG NEAR FLAT AND AN EXPECTED ASSETBACKED OFFERING HADN'T COME TO MARKET AS OF LATE YESTERDAY PARTICIPANTS WERE LOOKING FOR NATIONSBANK CORP TO PRICE A 1 BILLION TWOPART CREDITCARD OFFERING IN THE BANK'S FIRST SECURITIZATION OF ITS CREDITCARD PORTFOLIO THE OFFERING WAS EXPECTED TO INCLUDE 10YEAR SECURITIES ONLY THE THIRD CREDITCARD OFFERING WITH 10YEAR ISSUES THIS YEAR MORTGAGE DEALERS AND INVESTORS LIKE EVERYONE ELSE IN THE FIXEDINCOME UNIVERSE ARE CAUTIOUSLY CONCERNED WITH INFLATION DATA DUE IN THE NEXT TWO SESSIONS THE GOVERNMENT WILL RELEASE THE NOVEMBER REPORTS ON PRODUCER AND CONSUMER PRICES TODAY AND TOMORROW RESPECTIVELY HIGHERCOUPON GINNIE MAES WERE FINISHING FLAT THOSE ISSUES HAD SUFFERED LAST SESSION AND EARLY YESTERDAY ON NEWS THAT THE VETERANS ADMINISTRATION WOULD BE ENCOURAGING VETERANS HOLDING MORTGAGES WITH RATES OF 85 AND HIGHER TO REFINANCE