DETROIT AUTO STOCKS ARE TRADING NEAR RECORD HIGHS FUELED BY INVESTORS'
BELIEF THAT THE BIG THREE WILL POST EXCEPTIONAL EARNINGS THIS YEAR SO IS
IT TIME TO SELL

SEVERAL AUTO ANALYSTS SAY NO EVEN THOUGH THE GROUP TOOK A HIT IN THE STOCK
MARKET YESTERDAY SURE THE STOCKS ARE ALREADY UP 45 TO 57 FROM JANUARY A
YEAR AGO AND CERTAINLY SOME INVESTORS ARE GETTING NERVOUS YESTERDAY
GENERAL MOTORS FELL 3/4 TO 60 1/8 CHRYSLER SLID 5/8 TO 59 7/8 AND FORD
MOTOR SANK 1 3/8 TO 65 5/8

YET AUTO ANALYSTS ARE BETTING THAT THE AUTO STOCKS AS A GROUP WILL GAIN AT
LEAST ANOTHER 20 BEFORE SPUTTERING SOME AUTO ANALYSTS EVEN SPECULATE THAT
THE PEAK IS SOMEWHERE BETWEEN 90 AND 100 A SHARE FOR ALL THREE COMPANIES

THE PERCEPTION OF WHAT THESE COMPANIES WILL EARN IS RISING SAYS DAVID
HEALY SG WARBURG'S AUTO ANALYST THE EARNINGS ARE STRONGER THAN WHAT THE
STREET HAS EXPECTED THE MARKET HAS BECOME CONVINCED THAT THE RECOVERY IN
CAR SALES IS REAL

DEMAND FOR VEHICLES IS STRONG AS CONSUMER CONFIDENCE IN THE ECONOMY RUNS
HIGH BUT THE SALES RECOVERY IS JUST PART OF THE STORY GM FORD AND
CHRYSLER HAVE TAKEN BIG STEPS IN THE PAST COUPLE OF YEARS TO IMPROVE
PROFITABILITY IN THEIR NORTH AMERICAN OPERATIONS THE BIG THREE ALSO HAVE A
BIG PRICE ADVANTAGE OVER RIVAL JAPANESE MODELS WHICH NOW COST BUYERS AN
AVERAGE OF 2500 A VEHICLE MORE THAN DETROIT'S PRODUCTS FOR THAT DETROIT
CAN THANK THE CLINTON ADMINISTRATION'S CAMPAIGN TO TALK UP THE YEN AND TALK
TOUGH TO JAPAN ON TRADE

DETROIT APPEARS POISED TO REAP THE BENEFITS FOR STARTERS THE BIG THREE
SEEM TO BE RETREATING FROM THE COSTLY REBATES OR SALES INCENTIVES THAT HAVE
ERODED PROFIT MARGINS FOR FIVE YEARS INSTEAD THEY ARE OFFERING A VARIETY OF
LESSGENEROUS LEASING PACKAGES AND VALUEPRICED VEHICLES PAINEWEBBER'S AUTO
ANALYST STEPHEN GIRSKY SAYS THAT IN GENERAL EVERY ONE PERCENTAGE POINT
SAVED IN MARKETING COSTS IS WORTH AS MUCH AS 70 CENTS IN PERSHARE EARNINGS
THAT'S A LOT OF LEVERAGE HE SAYS

CHRYSLER SLASHED ITS INCENTIVES TO AN AVERAGE OF 650 A VEHICLE IN THE
FOURTH QUARTER DOWN FROM 1020 A YEAR EARLIER FOR THE ENTIRE YEAR IT
SHAVED 35 PERCENTAGE POINTS FROM ITS MARKETING COSTS AS A PERCENTAGE OF
SALES ANALYSTS SAY THOSE COSTCUTTING MEASURES ALONE CONTRIBUTED A LARGE
CHUNK OF CHRYSLER'S FOURTHQUARTER PROFIT OF 777 MILLION OR 211 A SHARE
WHICH EXCEEDED ANALYSTS' EXPECTATIONS

SHARPLY REDUCED DISCOUNTING RESULTING IN HIGHER PRICES COULD HELP FORD
AND GM TO POST FOURTHQUARTER EARNINGS SURPRISES NEXT MONTH AS WELL

AUTO ANALYSTS BELIEVE THAT DETROIT IS POISED TO MAKE BIG GAINS IN RECOVERING
MARKET SHARE LOST TO THE JAPANESE THE JAPANESE HAVEN'T BEEN ABLE TO SHIFT
PRODUCTION TO MEET SURGING DEMAND FOR TRUCKS AND MINIVANS AS DETROIT HAS
OVER THE PAST FEW YEARS THE JAPANESE ARE FURTHER HOBBLED BY A CONTINUING
RECESSION AT HOME

THE JAPANESE ARE STILL IN TROUBLE SAYS MR GIRSKY FOR US CAR
PRODUCERS THE INVENTORY IS NOT OUT OF WHACK WITH REALITY CONSUMER
CONFIDENCE IS HIGH THERE ARE NO RED FLAGS HERE AT ALL I WOULDN'T SELL ANY
AUTO STOCKS

SO WHEN DO YOU SELL JOSEPH PHILLIPPI LEHMAN BROTHERS' AUTO ANALYST SAYS
IT'S POSSIBLE THE AUTO MAKERS' STOCK PRICES MIGHT HIT A PEAK BY THE END OF
THIS YEAR

BUT WERTHEIM SCHRODER'S JOHN CASESA BELIEVES THE TIME TO SELL WON'T BE UNTIL
A YEAR TO 18 MONTHS FROM NOW BEFORE EARNINGS ARE EXPECTED TO PEAK

SAYS MR CASESA YOU BUY WHEN BUSINESS IS VERY BAD BUT NOT GETTING ANY
WORSE AND YOU SELL WHEN BUSINESS IS VERY GOOD BUT CAN'T GET ANY BETTER

WALL STREET IS MISSING THE BOAT ON PAINEWEBBER GROUP SAYS ONE PRO WHO'S
OFTEN A BEAR BUT BULLISH THIS TIME

EVEN THOUGH PAINWEBBER POSTED RECORD EARNINGS ALONG WITH BROKERAGEINDUSTRY
LEADER MERRILL LYNCH YESTERDAY PAINEWEBBER'S STOCK FELL 5/8 TO 25 3/4
THAT'S BARELY ABOVE BOOK VALUE AND 58 TIMES REPORTED EARNINGS
ASTONISHING SAYS DAVID ROCKER OF NEW YORK'S ROCKER PARTNERS WHO HAS BEEN
ADDING TO HIS PAINEWEBBER HOLDINGS HE MOCKS TRENDFOLLOWING INVESTORS FOR
BUYING CYCLICALS WHILE ABANDONING PAINEWEBBER BECAUSE OF FEARS OF A BEAR
MARKET FUNDAMENTALS DON'T SEEM TO MATTER COMPLAINS MR ROCKER ADDING
IF THINGS GET SO BAD THAT PAINEWEBBER'S LOW VALUATION IS JUSTIFIED WHAT'S
GOING TO HAPPEN TO THE REST OF THE MARKET 9401250035 940125 WHO'S NEWS
 SPAGHETTI WAREHOUSE OUSTS CHAIRMAN CITING STRATEGIC DIFFERENCES

DALLAS SPAGHETTI WAREHOUSE INC OUSTED LOUIS NEEB AS CHAIRMAN CHIEF
EXECUTIVE AND PRESIDENT CITING PHILOSOPHICAL DIFFERENCES OVER THE DIRECTION
OF THE ITALIANRESTAURANT CHAIN

THE COMPANY'S FOUNDER AND FORMER CHAIRMAN ROBERT R HAWK WAS NAMED TO
SUCCEED MR NEEB AS CHAIRMAN MR HAWK WAS ALSO NAMED INTERIM CHIEF
EXECUTIVE AND INTERIM PRESIDENT

SPAGHETTI WAREHOUSE ANNOUNCED THE NEWS AFTER THE CLOSE OF BUSINESS
YESTERDAY COMPANY OFFICIALS COULDN'T BE REACHED TO ELABORATE MR NEEB WHO
WAS NAMED PRESIDENT IN 1991 AND BECAME CHAIRMAN IN OCTOBER ALSO COULDN'T BE
REACHED

THE COMPANY SAID ITS EXPANSION WOULD BE CURTAILED UNTIL A NEW CEO AND
PRESIDENT IS NAMED THE 21YEAROLD CHAIN WITH MOST OF ITS RESTAURANTS
LOCATED IN CONVERTED URBAN WAREHOUSES SHIFTED GEARS LAST YEAR AND STARTED
TO OPEN RESTAURANTS IN SUBURBAN AREAS

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SPAGHETTI WAREHOUSE
SHARES WERE DOWN 50 CENTS TO 7875 THE STOCK HAD TRADED AS HIGH AS 1950
A YEAR AGO AND 3075 IN LATE 1991 9401250034 940125 WHO'S NEWS ALDEN
ELECTRONICS INC

ALDEN ELECTRONICS INC WESTBOROUGH MASS ARNOLD A KRAFT 50 YEARS
OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BACHMAN INFORMATION
SYSTEMS INC WAS NAMED PRESIDENT AND CEO OF THIS MAKER OF WEATHER AND
UNDERSEARECORDING EQUIPMENT 9401250033 940125 INTERNATIONAL WORLD
WIRE  COMPILED BY RICHARD L HOLMAN

SOUTH KOREA'S FINANCE MINISTRY AIMING TO SIMPLIFY FOREIGNINVESTMENT
PROCEDURES UNVEILED PLANS TO REVISE A LAW ON BRINGING FOREIGN CAPITAL INTO
THE COUNTRY

UNDER THE PROPOSAL EFFECTIVE JULY 1 FOREIGN BUSINESSES THAT DON'T REQUIRE
GOVERNMENT APPROVAL COULD BE LAUNCHED UPON FILING A REPORT SUCH CLEARANCE
NOW TAKES AS LONG AS A MONTH THE WAITING PERIOD FOR PROJECTS NEEDING
GOVERNMENT APPROVAL WOULD BE CUT TO 5 FROM 30 DAYS

THE REVISION ALSO WOULD LIFT A BAN ON FOREIGN INVESTMENT IN SECTORS THAT USE
LOTS OF ENERGY OR IMPORTED RAW MATERIALS AND THOSE THAT GET SUBSIDIES BUT
CURBS WILL REMAIN ON INVESTMENT IN AREAS THAT COULD HURT THE ENVIRONMENT OR
ARE INCOMPATIBLE WITH NATIONAL CUSTOMS

MEANWHILE STARTING MARCH 1 THE STATERUN KOREA DEVELOPMENT BANK AND
INDUSTRIAL BANK OF KOREA MAY ACCEPT INVESTMENT PROPOSALS FROM FOREIGNERS
WHO NOW MUST GO THROUGH THE CENTRAL BANK AND STARTING JULY 1 OTHER
FOREIGNEXCHANGE BANKS WILL BE AUTHORIZED TO PARTICIPATE

HUNGARY WILL AUCTION OFF AS MANY AS 250 UNPRODUCTIVE OR DILAPIDATED STATE
PROPERTIES INCLUDING CASTLES CITY MANSIONS COUNTRY HOMES MILLS INNS AND
HUNTING LODGES THE PRIVATIZATION EFFORT ALSO INTENDED TO PRESERVE OR
REFURBISH SOME ARCHITECTURALLY DISTINCT PROPERTIES WILL BEGIN IN THE
SPRING AFTER THE GOVERNMENT EVALUATES THE ASSETS PRICES COULD RANGE FROM
49000 TO 980000 HUNGARIANS WHO MAY USE SPECIAL LOANS AND COMPENSATION
COUPONS AWARDED TO VICTIMS OF PROPERTY NATIONALIZATIONS WILL GET PREFERENCE
IN THE SELLOFF IF THEY MATCH OFFERS BY FOREIGNERS

DEATHS OF JAPANESE MEN FROM LUNG CANCER TOTALED 20036 IN LAST YEAR'S FIRST
EIGHT MONTHS SURPASSING STOMACHCANCER DEATHS AT 19769 THE STOMACH
DISEASE HAD BEEN THE BIGGEST CAUSE OF CANCER DEATHS FOR THE PREVIOUS 40
YEARS THE HEALTH AND WELFARE MINISTRY SAID THE NEW TREND WAS CERTAIN TO
APPLY FOR THE FULL YEAR IN THE PAST THREE DECADES THE PROPORTION OF MEN'S
DEATHS FROM STOMACH CANCER FELL ATTRIBUTED TO EATING LESSSALTY FOODS
WHILE LUNGCANCER CASES INCREASED 70 OF THEM LINKED TO SMOKING BUT
STOMACH CANCER REMAINED THE LEADING CAUSE OF CANCER DEATHS AMONG JAPANESE
WOMEN

POPE JOHN PAUL II CHARACTERIZED TELEVISION AS A MAJOR THREAT TO FAMILY LIFE
AND URGED LEGALLY ENFORCEABLE CODES OF ETHICS FOR THE INDUSTRY IN A MESSAGE
FOR THE ROMAN CATHOLIC CHURCH'S 38TH WORLD DAY OF COMMUNICATIONS THE
PONTIFF SAID TV PROGRAMS GLORIFY SEX AND VIOLENCE RECKLESSLY SPREAD FALSE
VALUES AND DISTORT AND MANIPULATE ACCOUNTS OF NEWS EVENTS CRITICIZING THE
USE OF TV AS AN ELECTRONIC BABYSITTER HE CHALLENGED PARENTS TO TURN
THEIR SETS OFF WHEN APPROPRIATE HE ALSO URGED THEM TO GET TOUGH WITH
PRODUCERS ADVERTISERS AND GOVERNMENTS TO FOSTER MORALLY ENRICHING
PROGRAMMING

TROPICAL TIMBER EXPORTERS SUPPORTED A NEW ACCORD TO PROMOTE FOREST
CONSERVATION AFTER RICH COUNTRIES MADE AN UNPRECEDENTED PLEDGE TO APPLY
SIMILAR STANDARDS IN THEIR LOGGING INDUSTRIES UNITED NATIONS OFFICIALS IN
GENEVA SAID ABOUT 50 COUNTRIES ARE TO APPROVE A NEW INTERNATIONAL TROPICAL
TIMBER AGREEMENT TOMORROW UNDER THE PACT THAT EXPIRES MARCH 31 EXPORTERS
IN THE FAR EAST AFRICA AND LATIN AMERICA EMBRACED CONSERVATION MEASURES IN
RETURN FOR REFORESTATION FUNDING FROM WESTERN COUNTRIES BUT THOSE PRODUCERS
SAID THE ACCORD PUT THEM AT A MARKET DISADVANTAGE BECAUSE IT IMPOSED FOREST
MANAGEMENT STANDARDS ONLY ON THEM

VIETNAM'S AGRICULTURAL PRODUCTION LAST YEAR CLIMBED 14 TO 593 MILLION
FROM A YEAR EARLIER GOVERNMENT RADIO SAID THE REPORT CITED STRIDES BY THE
FOOD PROCESSING INDUSTRY WHICH LED OTHER SECTORS WITH AN 11 INCREASE IN
OUTPUT TO 493 MILLION AGRICULTURAL TRADE FOR THE YEAR TOTALED 3518
MILLION THE AGRICULTURE AND FOOD INDUSTRY MINISTRY SAID FARM EXPORTS WERE
VALUED AT 2357 MILLION UP 61 WHILE IMPORTS DECLINED 10 TO 1161
MILLION

CITING WIDESPREAD MISUNDERSTANDING ABOUT TAXES THAT TOOK EFFECT JAN 1 THE
CHINESE GOVERNMENT IS SENDING OUT A MILLION PEOPLE TO EXPLAIN THE NEW TAX
LAWS

THE CHIEF OF BEIJING'S TAX AGENCY SAID TAX OFFICIALS AND LOCAL GOVERNMENT
AND CIVIC LEADERS WILL HIT THE STREETS TO EDUCATE THE PUBLIC TA KUNG PAO A
BEIJINGFUNDED NEWSPAPER IN HONG KONG REPORTED

THE NEW LEVIES INCLUDING CONSUMPTION AND VALUEADDED TAXES ARE DESIGNED TO
ENLARGE THE CENTRAL GOVERNMENT'S SHARE OF REVENUES AND ADVANCE ITS GOAL OF
ADOPTING SOME ASPECTS OF A MARKET ECONOMY

MEANWHILE THE BEIJINGFUNDED WEN WEI PO NEWSPAPER IN HONG KONG SAID CHINESE
MEDIA AND PUBLISHING OFFICIALS GATHERED FOR CHINA'S FIRST NATIONAL
PROPAGANDA MEETING SINCE 1957 TO EXAMINE HOW TO PUBLICIZE THE COUNTRY'S
MARKET REFORMS THROUGH NEWSPAPERS BROADCASTING PUBLISHING AND THE ARTS

TAIWAN'S 1993 UNEMPLOYMENT RATE FELL TO 145 AN 11YEAR LOW AS MANY MEN
TOOK EARLY RETIREMENT CUTTING THE RATIO OF MALE JOB HOLDERS AMONG THOSE
EMPLOYABLE TO A RECORD LOW 73  THE BIG BEN CLOCK ATOP BRITAIN'S
PARLIAMENT MYSTERIOUSLY STOPPED SUNDAY FOR THREE HOURS FOR THE SECOND TIME
IN EIGHT MONTHS LAST MAY AMID EFFORTS TO IDENTIFY THE PROBLEM THE
135YEAROLD CLOCK RESTARTED ITSELF 9401250032 940125 BUSINESS BRIEFS

TANDY CORP AGREED TO SELL ITS LIKA PRINTED CIRCUITBOARD MANUFACTURING
OPERATIONS IN STOCKTON CALIF AND SALT LAKE CITY TO INDIA'S EASTERN
CIRCUITS LTD FOR ABOUT 17 MILLION

HICKS MUSE & CO A PRIVATE INVESTMENT FIRM COMPLETED ITS 390 MILLION
ACQUISITION OF G HEILEMAN BREWING CO A PRIVATELY HELD REGIONAL BREWING
COMPANY BASED IN LA CROSSE WIS

COLTEC INDUSTRIES INC WILL CLOSE ITS AIRCRAFT LANDINGGEAR OVERHAUL PLANT
IN BURBANK CALIF LATER THIS YEAR AND MOVE THE BUSINESS TO A NEW FACILITY
IN BURLINGTON ONTARIO THE OPERATIONS WILL BE RENAMED MENASCO AVIATION
SERVICES LTD AND RUN AS A SUBSIDIARY OF COLTEC

CORESTATES FINANCIAL CORP SAID ONE OF ITS EDGE ACT SUBSIDIARIES
PHILADELPHIA INTERNATIONAL INVESTMENT CORP PURCHASED 145 OF ABERDEEN
TRUST PLC A BRITISH INVESTMENTMANAGEMENT COMPANY TERMS WEREN'T DISCLOSED
THE FEDERAL EDGE ACT ALLOWS BANKS TO SET UP INTERNATIONAL SUBSIDIARIES NOT
SUBJECT TO CERTAIN DOMESTIC BANKING REGULATIONS 9401250031 940125 LEISURE
& ARTS BOOKSHELF FUTURE THOUGHTS  BY ADI IGNATIUS

BY ANY STRETCH OF LOGIC RUSSIA SHOULD PULL OUT OF ITS MISERY THE COUNTRY
BOASTS HUGE RESERVES OF NEARLY EVERY RESOURCE ON THE PLANET IT HAS A
WELLEDUCATED WORK FORCE AND IT IS DEVELOPING A GOGO YOUNGER GENERATION
THAT IS POISED TO CONQUER THE BRAVE NEW CAPITALIST WORLD AND YET EVERY
TIME RUSSIA SEEMS TO FACE SMOOTH SAILING SOMETHING UNEXPECTED GOES WRONG

SO HOW CAN ANYONE REASONABLY FORECAST THE FUTURE OF THIS UNPREDICTABLE
GIANT WHICH STRETCHES ACROSS A STAGGERING 11 TIME ZONES FROM CENTRAL EUROPE
TO ALASKA AS A FOREIGN CORRESPONDENT IN MOSCOW I APPRECIATE THE
DIFFICULTIES IN THIS CHAOTIC ENVIRONMENT WE'RE GENERALLY REDUCED TO
ANALYZING WHETHER YESTERDAY'S DEVELOPMENTS WILL BE REVERSED TODAY IT'S HARD
TO THINK ABOUT TOMORROW

A PAIR OF AMERICAN POLITICAL ANALYSTS HAVE BRAVELY TAKEN UP THE TASK IN
RUSSIA 2010 AND WHAT IT MEANS FOR THE WORLD RANDOM HOUSE 276 PAGES
23 DANIEL YERGIN WHO WON THE 1992 PULITZER PRIZE FOR NONFICTION FOR THE
PRIZE AND THANE GUSTAFSON ATTEMPT TO TELL US JUST WHERE RUSSIA MIGHT BE
HEADED

WISELY THE AUTHORS REFRAIN FROM TRYING TO DIVINE RUSSIA'S EXACT COURSE
THEY SPIN A SERIES OF COMPLEX SCENARIOS THAT SEEM EQUALLY LIKELY TO GROW OUT
OF THE POSTSOVIET MUDDLE INTO WHICH RUSSIA HAS SUNK IN THE AUTHORS' WORDS
THEY ARE ATTEMPTING TO WRITE HISTORIES OF THE FUTURE

RUSSIA 2010 IDENTIFIES FIVE PLAUSIBLE SCENARIOS CONTINUED MUDDLING A
MILITARYINDUSTRIAL REASSERTION OF CENTRALIZED POWER A DANGEROUS BREAKDOWN
OF ORDER AUTHORITARIANISM AND A CAPITALIST ECONOMIC MIRACLE EACH IS ARGUED
COGENTLY AND THE AUTHORS BRING TO THE TASK AN IMPRESSIVE GRASP OF RUSSIA'S
HISTORY AND EVEN OF ITS CURRENT SUBTLETIES

BUT JUST HOW USEFUL IS ANY OF THIS THE RANGE OF SCENARIOS IS SO BROAD 
FROM CUDDLY FREEMARKET SUCCESS STORY TO BELLIGERENT MILITARY MACHINE 
THAT MOST READERS ARE LIKELY TO LOSE THEIR WAY THAT'S ESPECIALLY TRUE IN
LIGHT OF THE AUTHORS' CANDID IF SOBERING ADMISSION THAT THE OUTSIDE WORLD
CAN DO LITTLE TO AFFECT HOW RUSSIA DEVELOPS

WORSE THE BOOK OFTEN LAPSES INTO STILTED AND ANNOYING TERMINOLOGY THE
SCENARIOS GET CHILDLIKE MONIKERS SUCH AS MUDDLING DOWN THE LONG GOODBYE
AND THE TWOHEADED EAGLE AND AS THE WHAT IFS BEGIN TO MULTIPLY THE IDEAS
SOMETIMES SEEM TO LEAD NOWHERE MUDDLING DOWN IN RUSSIA COINCIDES WITH
TWOHEADED EAGLE IN UKRAINE THE AUTHORS WRITE BUT IF UKRAINIAN POLITICS
LAPSES INTO MUDDLING DOWN  THIS REVIEWER WAS TEMPTED TO ADVANCE TO THE
SCENARIO OF THE GREAT CLOSED BOOK

BUT RUSSIA 2010 DOES HAVE SOMETHING TO OFFER FIRST THE BOOK'S SNAPSHOT
DESCRIPTIONS OF RUSSIAN SOCIETY AND ITS MAJOR ACTORS AND INSTITUTIONS ARE
CONCISE AND GENERALLY ON THE MARK AND OCCASIONALLY THE AUTHORS WHO
DESCRIBE THEMSELVES AS CAUTIOUSLY OPTIMISTIC ARE WILLING TO GO OUT ON A
SHORT LIMB TO MAKE A FEW SOLID PREDICTIONS FOR WHERE RUSSIA WILL BE 16 YEARS
FROM NOW MOST IMPORTANTLY THEY ARGUE THE COUNTRY WILL CONTINUE TO DEVELOP
IN THE DIRECTION OF CAPITALISM RUSSIASTYLE DESPITE INEVITABLE SETBACKS
ALONG THE WAY THE GENIE WON'T SLIP BACK INTO THE BOTTLE

MESSRS YERGIN AND GUSTAFSON ALSO ARE PROBABLY ON THE MARK IN IDENTIFYING
RUSSIA'S BIGGEST DANGER CONFLICT WITH UKRAINE IT IS HERE THAT THE
SCENARIOSPINNING SEEMS MOST USEFUL THEY FORECAST A POSSIBLE CLASH FOUR
YEARS FROM NOW MAYBE SOONER AS A DISMAL ECONOMY PROMPTS THE LARGELY
RUSSIANPOPULATED PROVINCES OF EASTERN UKRAINE TO SECEDE SPARKING AN
AGGRESSIVE NATIONALIST BACKLASH IN KIEV IT'S A STARK REMINDER TO THE WEST
TO DO WHATEVER IT CAN TO KEEP THE TWO COUNTRIES FROM STARTING A CONFLICT
THAT COULD ENGULF MUCH OF CENTRAL EUROPE

SOME OF THE AUTHORS' ADVICE ALSO IS WORTH PONDERING AMONG THE SOUNDEST AND
MOST CONTROVERSIAL OBSERVATIONS IF RUSSIA IS TO BE A PARTNER WITH THE
WEST THEN RUSSIA WILL HAVE TO BECOME A MEMBER OF THE CLUB THE WEST CAN'T
SIMPLY WAIT FOR SIGNS OF GOOD BEHAVIOR BEFORE IT OFFERS A REWARD NO PROUD
PEOPLE THE AUTHORS WRITE WILL TOLERATE BEING MADE TO WAIT AT THE DOOR
AS THE RUSSIANS ARE BEING ASKED TO WAIT TODAY

FOR FOREIGN INVESTORS TOO THERE ARE USEFUL INSIGHTS NO MATTER HOW WIDELY
RUSSIA OPENS TO THE OUTSIDE WORLD THE AUTHORS ARGUE IT WILL ALWAYS BE
AMBIVALENT TOWARD FOREIGN CAPITAL THEY ADVISE POTENTIAL INVESTORS TO ENTER
THE MARKET GRADUALLY GET THEIR CEOS PERSONALLY INVOLVED FIND A SOLID LOCAL
PARTNER AND BE WILLING TO SETTLE FOR LESS THAN TOTAL EQUITY CONTROL

FOR ALL THEIR ATTEMPTED PRESCIENCE HOWEVER THE AUTHORS OMIT SEVERAL
CRITICAL QUESTIONS MOST OBVIOUSLY THEY FAIL TO DISCUSS THE COMPLICATED
FUTURE OF THE NORTH ATLANTIC TREATY ORGANIZATION RUSSIA'S PERCEPTION OF THE
THREAT FROM AN EXPANDED NATO COULD GO A LONG WAY TOWARD DETERMINING THE
NATION'S FOREIGN POLICY AND ITS SENSE OF SELF

NEVERTHELESS THE AUTHORS MUST ALREADY BE BASKING IN THE GLOW OF PARTLY
FULFILLED SCENARIOS RUSSIA'S PARLIAMENTARY ELECTIONS IN DECEMBER WHICH
TOOK PLACE AFTER PUBLICATION FOLLOWED THE SCRIPT OF THE MUDDLING DOWN
SCENARIO FERTILE GROUND FOR RUSSIA'S NATIONALISTS AND NEOFASCISTS COME
2010 IT'S A SAFE BET THAT MESSRS YERGIN AND GUSTAFSON WILL POINT TO A FEW
OTHER SELECTED PASSAGES TO SHOW THAT THEY SAW IT ALL COMING

MR IGNATIUS THE JOURNAL'S MOSCOW BUREAU CHIEF PREDICTS THAT BY 2010 HE
WILL BE LIVING IN RUSSIA NOT LIVING IN RUSSIA OR SOMETHING ELSE ENTIRELY
9401250030 940125 STEINHARDT MOVES CLOSER TO CONTROLLING INTEGRATED
RESOURCES

NEW YORK STEINHARDT MANAGEMENT CO MOVED A STEP CLOSER TO GAINING CONTROL
OF INTEGRATED RESOURCES INC BY REACHING AN AGREEMENT WITH SENIOR CREDITORS
OF THE FORMER TAXSHELTER COMPANY

INTEGRATED RESOURCES ONCE ONE OF THE LARGEST SYNDICATORS OF LIMITED
PARTNERSHIPS IN THE 1980S HAS BEEN OPERATING UNDER CHAPTER 11 OF THE
FEDERAL BANKRUPTCY CODE FOR FOUR YEARS

PRIVATELY HELD STEINHARDT MANAGEMENT IS AN AFFILIATE OF A NEW YORKBASED
HEDGE FUND RUN BY MICHAEL STEINHARDT IT HAS BEEN AFTER INTEGRATED RESOURCES
FOR TWO YEARS IN ALLIANCE WITH SUBORDINATED CREDITORS AND LAWYERS
REPRESENTING INDIVIDUALS IN THE LIMITED PARTNERSHIPS

UNDER THE STEINHARDT PLAN SENIOR CREDITORS WITH CLAIMS OF 12 BILLION WILL
RECEIVE 55 CENTS ON THE DOLLAR IN CASH AND STOCK OF THE NEW COMPANY
ALTHOUGH STEINHARDT SAYS THE DISTRIBUTION COULD BE VALUED AT AS MUCH AS 96
CENTS ON THE DOLLAR IF THE CASH IS REINVESTED IN MORE STOCK SUBORDINATED
BONDHOLDERS WHO ARE OWED 668 MILLION WILL RECEIVE A CASH DISTRIBUTION OF
THREE CENTS ON THE DOLLAR OF CLAIMS WITH THE RIGHT TO BUY NEW INTEGRATED
STOCK STEINHARDT MANAGEMENT WILL CONTROL 12 OF THE COMPANY'S NEW STOCK

REPRESENTATIVES OF THE CREDITORS' COMMITTEES VOICED THEIR SUPPORT IN A
CONFERENCE CALL LAST THURSDAY WITH FEDERAL BANKRUPTCY JUDGE CORNELIUS
BLACKSHEAR IN THE SOUTHERN DISTRICT OF NEW YORK

REPRESENTATIVES OF INTEGRATED RESOURCES WHICH HAS A COMPETING PLAN BEFORE
CREDITORS COULD NOT BE REACHED DESPITE REPEATED CALLS 9401250029 940125
CORNING POSTS LOSS OF 1209 MILLION FOR FOURTH PERIOD  BY
GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL

CORNING NY CORNING INC SWUNG TO A LOSS IN THE FOURTH QUARTER
PRIMARILY BECAUSE OF A CHARGE RELATED TO BREASTIMPLANT LITIGATION AT DOW
CORNING CORP

CORNING POSTED A LOSS OF 1209 MILLION OR 64 CENTS A SHARE INCLUDING A
203 MILLION CHARGE CORNING SAID THE CHARGE IS BEING TAKEN IN EXPECTATION
OF A GLOBAL SETTLEMENT OF SUITS BROUGHT BY BREASTIMPLANT PATIENTS CORNING
AND DOW CHEMICAL CO ARE 5050 OWNERS OF DOW CORNING

IN THE YEARAGO QUARTER CORNING EARNED 412 MILLION OR 21 CENTS A SHARE
INCLUDING A GAIN OF THREE CENTS A SHARE FROM A TAXLOSS CARRYFOWARD AND
ACCOUNTING AND SPECIAL CHARGES TOTALING 178 A SHARE

REVENUE ROSE 9 TO 109 BILLION FROM 1 BILLION A YEAR AGO

EXCLUDING THE SPECIAL CHARGE WHICH AMOUNTS TO 106 A SHARE CORNING HAD
EARNINGS OF 822 MILLION OR 42 CENTS A SHARE IN THE LATEST QUARTER
COMPARED WITH YEARAGO OPERATING PROFIT OF 799 MILLION OR 42 CENTS A
SHARE CORNING SAID THE NEARLY FLAT OPERATING RESULTS REFLECT DIFFICULTIES
IN ITS CONSUMER PRODUCTS UNIT WHICH IT IS RESTRUCTURING AS WELL AS PRICING
PRESSURES IN ITS OPTICAL FIBER AND CABLE AND CLINICALTESTING UNITS
CORNING'S CONSUMER PRODUCTS BUSINESS WHICH MAKES CORNING WARE REVERE WARE
AND CORELLE DINNER WARE AMONG OTHER BRANDS HAS BEEN HURT BY THE RECESSION
IN MEXICO WHERE IT HAS LARGE OPERATIONS AND BY THE WEAK ECONOMIES IN
EUROPE MY GUESS IS IF THEY DON'T GET RESULTS IN A YEAR THEY MIGHT SELL
THE BUSINESS SAID KIMBERLY E RITRIEVI AN ANALYST WITH PAINEWEBBER A
CORNING SPOKESMAN SAID THAT'S A SPECULATIVE COMMENT WE ARE WORKING TO
IMPROVE THE BUSINESS

ANALYSTS NOTED THAT THE FOURTHQUARTER RESULTS INCLUDED A GAIN OF ABOUT TWO
CENTS A SHARE FOR A TAX BENEFIT RELATED TO CORNING'S VITRO CORNING SA JOINT
VENTURE WHICH IS BEING DISMANTLED THEY ALSO SAID CORNING'S EFFECTIVE TAX
RATE WAS 26 IN THE QUARTER DOWN FROM 28 A YEAR AGO IF YOU NORMALIZE THE
TAX RATE YOU'RE LOOKING AT 38 CENTS OR 39 CENTS A SHARE ON AN OPERATING
BASIS SAID B ALEX HENDERSON AN ANALYST WITH PRUDENTIAL SECURITIES IT'S
CERTAINLY DOWN FROM A YEAR AGO

NEVERTHELESS THE RESULTS WERE GENERALLY IN LINE WITH ANALYSTS'
EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CORNING FELL 25
CENTS TO 31125

FOR THE YEAR CORNING POSTED A LOSS OF 152 MILLION OR NINE CENTS A SHARE
INCLUDING THE BREAST IMPLANTRELATED CHARGE AS WELL AS A CHARGE FOR
ACCOUNTING CHANGES THAT COMPARES WITH A YEARAGO LOSS OF 126 MILLION OR
EIGHT CENTS A SHARE INCLUDING A GAIN OF FOUR CENTS A SHARE FOR TAXLOSS
CARRYFOWARD AND ACCOUNTING AND SPECIAL CHARGES TOTALING 178 A SHARE

ANALYSTS SAID THE COMPANY APPEARS COMFORTABLE WITH ESTIMATES OF 175 TO
180 A SHARE FOR 1994 9401250028 940125 IN THE LAB TO SAVE TREES 
DISNEY STAFFERS WISH UPON BUG  BY MARILYN CHASE STAFF REPORTER
OF THE WALL STREET JOURNAL

MENTION WALT DISNEY IN THE SAME BREATH WITH INSECTS AND MOST PEOPLE THINK
OF JIMINY CRICKET

BUT WIZARDS AT THE MAGIC KINGDOM HAVE EMBARKED ON A NEW ADVENTURE IN
ENTOMOLOGY TOGETHER WITH THE UNIVERSITY OF CALIFORNIA THEY'RE WAGING AN
ECOLOGICAL TURF WAR AGAINST AN AUSTRALIAN INSECT THAT HITCHHIKED TO
CALIFORNIA SCIENTISTS RECRUITED THE PEST'S NATURAL ENEMY A TINY WASP THE
SIZE OF A GRAIN OF PEPPER AS A BIOLOGICAL ALTERNATIVE TO CHEMICAL
PESTICIDES

ALTHOUGH IT SOUNDS LIKE AN INVENTION OF NEW AGE ECOLOGISTS BIOLOGICAL
CONTROL IS AN ANCIENT PRACTICE IN AD 300 THE CHINESE DEPLOYED ANTS TO
KILL PESTS THREATENING MANDARIN ORANGES CALIFORNIA CITRUS GROWERS ADOPTED
THE TECHNIQUE A CENTURY AGO BY IMPORTING VIDALIA BEETLES A KIN OF
LADYBUGS TO CURB SCALE INFESTING THE GROVES

THIS TIME THE PEST IS THE EUGENIA PSYLLID PRONOUNCED SILLID AN
APHIDLIKE CREATURE THAT DINES AND LAYS ITS EGGS ON THE LUSH LEAVES OF THE
EUGENIA TREE EUGENIA ANOTHER IMPORT FROM DOWN UNDER LOVES THE TEMPERATE
CLIMATE OF COASTAL CALIFORNIA THUS IT HAS BEEN PRIZED AS BORDER SHRUBS AND
TREES FOR DECADES BY GARDENERS FROM SAN DIEGO TO THE SAN FRANCISCO BAY
AMONG OTHER WEST COAST REGIONS A FEW FLORIDA NURSERIES ALSO BEGAN SELLING
EUGENIA BUT THE PLANT'S INTOLERANCE OF HEAT AND COLD HAVE KEPT IT FROM
BEING WIDELY ADOPTED IN THIS COUNTRY

DISNEYLAND'S GARDENERS LOVED EUGENIA PLANTING ABOUT 2400 LINEAR FEET OF IT
AS HEDGES AND PRUNING STILL MORE OF THE TREES INTO TOPIARY SCULPTURES OF
MICKEY MOUSE PLUTO AND OTHER CARTOON CHARACTERS THEY LITTLE SUSPECTED THE
PARK'S PRISTINE GARDENS WOULD BECOME JUICY FODDER FOR AN ALIEN BUG

ENTER THE STOWAWAY PSYLLIDS IN THE LATE 1980S PROBABLY IN A TOURIST'S
SUITCASE OR IN THE HOLD OF A COMMERCIAL JETLINER ONCE HERE THE VORACIOUS
BUGS SAVAGED EUGENIA BLISTERING LEAVES AND STUNTING GROWTH SAYS DR DONALD
L DAHLSTEN PROFESSOR OF BIOLOGICAL CONTROL AT THE UNIVERSITY OF CALIFORNIA
AT BERKELEY

THE PSYLLID LARVAE SIT RIGHT DOWN IN A PIT FORMED BY SUCKING ON THE LEAVES'
UNDERSIDE HE SAYS THE BUGS ALSO EXCRETE A SUGARLADEN WASTE THAT
NOURISHES THE GROWTH OF SOOTY MOLD CAKING LEAVES WITH BLACKISH DUST SAYS
DR DAHLSTEN YOU HAVE A MESS

CALIFORNIANS SPRAYED PESTICIDES AND GARDEN SOAPS AT THE INFESTATION BUT THE
BUGS BREED FASTER THAN CHEMICALS CAN KILL THEM NOW YOU CAN'T FIND A SINGLE
EUGENIA IN THE STATE WITHOUT THEM HE SAYS MILLIONS HAVE BEEN SPENT
TRYING TO GET RID OF THE PEST

DISNEY OFFICIALS IN 1991 CALLED DR DAHLSTEN FOR HELP AS IT HAPPENED THE
PROFESSOR WAS PACKING FOR A SABBATICAL IN AUSTRALIA ONCE THERE HE VISITED
A RAIN FOREST OUTSIDE SYDNEY THE ABORIGINAL HOME OF THE EUGENIA WHERE HE
COMBED THE FOLIAGE TO FIND THE PSYLLIDS' NATURAL ENEMY HIS QUEST WAS
REWARDED

HEALTHY EUGENIA FLOURISHED THERE ODDLY HE ALSO FOUND DEAD PSYLLID LARVAE
ALL BEARING HOLES PUNCHED BY A TINY STINGERLESS WASP THAT MINIWASP NAMED
TAMARIXIA MEASURES JUST 15 MM OR HALF THE LENGTH OF ITS PREY BUT BY
INSERTING ITS OVIPOSITOR THROUGH THE BODY OF THE PSYLLID LARVA AND
DEPOSITING ITS EGGS UNDER IT THE WASP EFFECTIVELY KILLS ITS ENEMY AND SAVES
THE EUGENIA

NEXT CAME RED TAPE AND QUARANTINE THE HARDEST PART WAS GETTING PERMISSION
TO SHIP WASPS OUT OF AUSTRALIA DR DAHLSTEN SAYS UNDER LAWS REGULATING
EXPORT OF EXOTIC FAUNA HE WAITED A MONTH FOR PERMISSION FROM AUSTRALIAN
PARKS AND AGRICULTURE CHIEFS

TRANSPORT SECURITY WAS TIGHT EGGBEARING LEAVES WERE ENCASED IN GELATIN
CAPSULES LIKE THOSE USED BY DRUGGISTS BOXED DOUBLEBAGGED ENTOMBED IN
MAILING TUBES THE WASP EGGS BOARDED COMMERCIAL JETLINERS BOUND FOR SAN
FRANCISCO

ONCE THE WASPS LANDED THERE US DEPARTMENT OF AGRICULTURE OFFICIALS PLACED
THEM UNDER QUARANTINE AT DR DAHLSTEN'S EXPERIMENTAL AGRICULTURAL STATION
NEAR THE BERKELEY CAMPUS THERE THEY HATCHED MATED FED ON EUGENIA
PSYLLIDS AND WAITED ANOTHER SIX MONTHS FOR A GREEN LIGHT FROM THE USDA AND
COUNTY OFFICIALS

ALL THIS WAS NECESSARY SO DR DAHLSTEN COULD CONVINCE OFFICIALS THAT THE
WASPS WOULDN'T RAVAGE OTHER PLANTS OR INSECTS LUCKILY THE WASPS ONLY EAT
PSYLLIDS THIS THING IS A SPECIALIST HE SAYS PROUDLY

FROM HIS OFFICE FESTOONED WITH BIRD AND BUG MOBILES THE RUGGED
SILVERHAIRED SCIENTIST RECENTLY TOOK A REPORTER FOR A PEEK AT HIS OUTDOOR
LAB AN EXPERIMENTAL GREENHOUSE THERE HE SHOOK A BRANCH OF HEALTHY EUGENIA
TO DISLODGE THE BUGS

THEY'RE HARD TO CATCH TODAY BECAUSE OF THE COLD HE GRUMBLES TAPPING THE
BOUGH HE CUPS HIS HAND TO CATCH A PALE WINGED FLY AND A FEW BLACK FLECKS
LOOKING LIKE GROUND PEPPER THE CRITTERS SCUTTLE UNDER A MICROSCOPE SEE
HERE'S THE PSYLLID AND HERE ARE THE WASPS HE SAYS EXPLAINING THE
ONCEBLIGHTED BUSH BEARS HEALTHY NEW LEAVES BECAUSE THE TWO BUGS NOW LIVE IN
BALANCE

IN JULY 1992 A HANDFUL OF WASPS 78 FEMALES AND 25 MALES WERE UNLEASHED AT
DISNEYLAND EVERY THREE OR FOUR WEEKS DR DAHLSTEN VISITS THE PARK FOR A
CENSUS REPORT ON PREDATOR AND PREY

AT DISNEYLAND THERE'S BEEN A 90 REDUCTION IN THE PSYLLID POPULATION AND
A DEFINITE IMPROVEMENT IN THE FOLIAGE HE SAYS WE'RE NOT DECLARING
SUCCESS JUST YET WE'RE ONLY IN THE MIDST OF THE SECOND YEAR OF THE TEST
WE'RE BEING CAUTIOUS BECAUSE BIOLOGICAL CONTROLS TAKE THREE TO FIVE YEARS

PROJECT SPONSOR WALT DISNEY IMAGINEERING A PART OF WALT DISNEY CO
CONFIRMS THE IMMIGRANT HAS ADAPTED WELL TO ITS NEW HOME

THE TAMARIXIA WASPS SPREAD AROUND THE PARK IN TWO MONTHS THEY SEEM TO BE
PROLIFIC WHICH IS OUR GOOD FORTUNE SAYS DISNEY ECOLOGIST DONALD KENT WE
HAVEN'T HAD TO USE PESTICIDES SINCE MAY 1992 AND THE PLANTS LOOK BETTER

WITH A HAPPY ENDING IN SIGHT AT THE MAGIC KINGDOM SCIENTISTS INTRODUCED THE
WASPS IN MAY 1993 AT THE SAN DIEGO ZOO THERE EUGENIA ARE USED FOR BOTH
DECORATIVE LANDSCAPING AND MONKEY FORAGE RULING OUT ALL PESTICIDES

WE REALLY HAD SOME UGLY TREES BUT THEIR APPEARANCE HAS IMPROVED
DRAMATICALLY SAYS ZOO ARBORIST DANNY SIMPSON THIS SPRING DR DAHLSTEN
MAY EXTEND TAMARIXIA'S ROAD SHOW INTO SAN FRANCISCO AND MARIN COUNTY

UNSURPRISINGLY THE LITTLE WASP IS DRAWING ATTENTION OF BIOLOGICAL CONTROL
COMPANIES RINCONVITOBA INSECTARIES INC OF VENTURA CALIF WANTS TO
COMMERCIALIZE TAMARIXIA BUT THE BUG'S NATURAL SUCCESS POSES A PARADOX FOR
WOULDBE MARKETERS

ONCE THESE THINGS MOVE AROUND ON THEIR OWN THERE WON'T BE A MARKET FOR
ANYBODY SAYS DR DAHLSTEN OF COURSE A BUG THAT DISTRIBUTES ITSELF HE
ADDS IS THE IDEAL BIOLOGICAL AGENT 9401250027 940125 COMMODITIES 
FUTURES PRICES OF NATURAL GAS AND FUELS JUMP ON EXPECTATIONS OF
SIGNIFICANT DROP IN SUPPLIES  BY JAMES TANNER STAFF REPORTER OF
THE WALL STREET JOURNAL

FUTURES PRICES OF NATURAL GAS AND FUELS SURGED YESTERDAY ON EXPECTATIONS OF
SIGNIFICANT REDUCTIONS IN SUPPLIES BECAUSE OF THIS WINTER'S SHARPLY HIGHER
DEMAND

ALSO NEWS OF WEEKEND FIRES THAT DISRUPTED OPERATIONS AT THE BIG WHITING
IND REFINERY OF AMOCO CORP CONTRIBUTED TO THE PRICE RALLY SEVERAL MAJOR
UNITS OF THE REFINERY HAD TO BE SHUT DOWN AND AMOCO SAID IT IS ALLOCATING
SUPPLIES TO WHOLESALERS THE COMPANY SAID IT EXPECTS THE AFFECTED UNITS TO
BE PUT BACK INTO OPERATION GRADUALLY OVER THE NEXT SEVERAL WEEKS

MUCH OF THE US HAD RELATIVELY MILD WEATHER YESTERDAY AFTER LAST WEEK'S
RECORD COLD BUT THERE WERE FORECASTS THAT ANOTHER ARCTIC BLAST MAY BE ON
THE WAY AND THERE WERE SIGNS THAT TODAY'S INDUSTRY REPORT ON US OIL
STATISTICS WILL SHOW A MAJOR SHRINKING IN FUELS INVENTORIES AS A RESULT OF
LAST WEEK'S FRIGID WEATHER

IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE THE FUTURES PRICE OF
NATURAL GAS FOR FEBRUARY DELIVERY JUMPED 165 CENTS TO SETTLE AT 247 A
MILLION BRITISH THERMAL UNITS ALTHOUGH TRADERS ATTRIBUTED MUCH OF THE
VOLATILITY TO YESTERDAY'S EXPIRATION OF THE FEBRUARY CONTRACT GAS FOR MARCH
DELIVERY ALSO WAS SHARPLY HIGHER RISING 77 CENTS TO 2283 A MILLION BTUS

ALSO TRADED HEAVILY HEATING OIL FOR FEBRUARY DELIVERY ROSE 136 CENTS TO
SETTLE AT 4939 CENTS A GALLON THE MARCH HEATING OIL CONTRACT WAS UP 087
CENT TO 4735 CENTS A GALLON

THE JUMPS IN PRICES OF FUELS PUSHED CRUDE OIL HIGHER IN BOTH NEW YORK AND
LONDON FUTURES MARKETS ERASING THE LOSSES IN YESTERDAY'S EARLY TRADING IN
NEW YORK THE MARCH CRUDE CONTRACT SETTLED AT 1517 A BARREL UP 23 CENTS
FOR THE DAY

DESPITE YESTERDAY'S RALLY SOME TRADERS STILL REMAINED BEARISH ON THE
OUTLOOK FOR PETROLEUM PRICES THERE HAS BEEN NO MAJOR CHANGE IN THE
FUNDAMENTALS SAID SHANNON BURCHETT AN ENERGY FUTURES EXPERT WITH CHASE
MANHATTAN BANK GENERALLY IT IS STILL A DOWNTRENDING MARKET

IN OTHER COMMODITY MARKETS YESTERDAY

PRECIOUS METALS GOLD FUTURES PRICES FELL ON HEAVY SELLING OF GOLD BY
JAPANESE DEALERS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY
DELIVERY WAS DOWN 30 CENTS TO 38140 AN OUNCE THE DECLINE WAS MAINLY
RELATED TO JAPANESE SELLING WHICH FOLLOWED A BIG DROP IN JAPAN'S NIKKEI
STOCK MARKET IN ANOTHER MARKET DEVELOPMENT TRADERS AND ANALYSTS EXPRESSED
SKEPTICISM ABOUT RECENT NEWS REPORTS ASSERTING THAT 1240 TONS OF GOLD
STASHED AWAY BY FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS HAD BEEN FOUND
IN A SWISS WAREHOUSE THE REPORT WAS MADE LAST WEEK IN BRITAIN'S MANCHESTER
GUARDIAN NEWSPAPER AND ON A BRITISH TELEVISION STATION ANALYSTS SAID THE
REPORT EXERTED SOME DOWNWARD PRESSURE ON GOLD FUTURES PRICES LAST THURSDAY
BUT THIS WEEK MOST MARKET PROFESSIONALS ARE OPENLY DUBIOUS ABOUT IT I
THINK IT'S A NONEVENT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR
MERRILL LYNCH IT'S A VERY NEBULOUS STORY AND I DON'T SEE IT AS BEING A
CONTINUING MARKET FACTOR I HAVEN'T SEEN ONE OUNCE OF GOLD BEING SOLD BY ANY
SWISS BANK RELATED TO THIS SOCALLED MARCOS GOLD SEPARATELY A BULLION
TRADER SAID THE QUANTITY OF GOLD SUPPOSEDLY STASHED BY MARCOS WOULD BE EQUAL
TO PHILIPPINE PRODUCTION OF GOLD FOR 40 YEARS IT IS HIGHLY UNLIKELY THIS
TRADER SAID THAT MR MARCOS COULD HAVE SECRETED AWAY NEARLY THAT MUCH GOLD

GRAINS AND SOYBEANS GRAIN FUTURES PRICES SETTLED HIGHER AFTER A TOPSYTURVY
DAY OF TRADING AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR MARCH DELIVERY
WERE UP 45 CENTS TO 698 A BUSHEL WHILE CORN FOR MARCH DELIVERY CLIMBED
275 CENTS TO 3005 A BUSHEL EARLY YESTERDAY REPORTS OF BENEFICIAL RAIN
IN SOYBEANGROWING REGIONS OF ARGENTINA AND BRAZIL DEPRESSED FUTURES PRICES
LATER HOWEVER TRADERS BID PRICES HIGHER ON EXPECTATIONS OF STRONG DEMAND
FOR SOYBEAN OIL AND OTHER SOY PRODUCTS SAID DANIEL W BASSE MARKET
RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO ALSO SUPPORTING THE MARKET
WAS AN ABSENCE OF SELLING BY FARMERS LAST WEEK'S SHARP PRICE DECLINE IN THE
CBOT'S GRAIN MARKET HAS PUT MANY FARMERS ON THE SIDELINES MR BASSE SAID
AWAITING HIGHER PRICES BEFORE CHOOSING TO SELL THEIR GRAIN 9401250026
940125 WHO'S NEWS NATIONAL CAR PRESIDENT LEAVING

MINNEAPOLIS NATIONAL CAR RENTAL/INTERRENT A CAR RENTAL CONCERN OWNED BY
GENERAL MOTORS CORP SAID PRESIDENT AND CHIEF OPERATING OFFICER ROBERT J
MCKENNA WILL LEAVE THE COMPANY AT THE END OF JANUARY

MR MCKENNA 56 YEARS OLD SAID IN AN INTERVIEW THAT LEAVING WAS HIS IDEA
AND HE DIDN'T RULE OUT PARTICIPATING IN A FUTURE EFFORT TO BUY NATIONAL CAR
WHICH GM IS TRYING TO SELL

JAY ALIX A SOUTHFIELD MICH CONSULTANT HIRED BY GM TO BE NATIONAL'S
CHIEF TURNAROUND OFFICER SAID IN A STATEMENT ANNOUNCING MR MCKENNA'S
DEPARTURE THAT NATIONAL IS NOW BACK ON ITS FEET FINANCIALLY MR MCKENNA
SAID NATIONAL WAS PROFITABLE IN 1993 9401250025 940125 ECONOMY CLINTON
GIVES WELFARE REFORM TOP PRIORITY  PLANS TO OVERHAUL SYSTEM 
SWITCHED TO FAST TRACK AFTER MOYNIHAN THREAT  BY MICHAEL K FRISBY
AND RON SUSKIND STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON WELFARE REFORM IS MOVING TO THE FRONT BURNER AT THE WHITE
HOUSE

SCRAPPING PLANS TO COAST ON WELFARE UNTIL HEALTHCARE LEGISLATION TAKES
SHAPE OFFICIALS HAVE DECIDED THAT PRESIDENT CLINTON'S WELFAREOVERHAUL
PROPOSAL MUST REACH CONGRESS AS QUICKLY AS POSSIBLE MAYBE AS EARLY AS LATE
FEBRUARY

THE FIRE WAS LIT ADMINISTRATION OFFICIALS SAY BY IMPATIENCE VOICED DURING
THE PAST FEW WEEKS BY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK
MOYNIHAN WHO WILL HELP SHAPE DEBATE ON BOTH ISSUES AND THREATENED TO HOLD
HEALTH CARE HOSTAGE IF WELFARE WERE DELAYED

COMMENTS BY THE NEW YORK DEMOCRAT IN A UNIQUE ROLE AS BOTH A LEADING
SCHOLAR AND THE KEY SENATE POWER BROKER ON WELFARE PUT THE FEAR OF GOD
INTO THE WHITE HOUSE SAID ONE MEMBER OF MR CLINTON'S 32MEMBER
INTERAGENCY WORK GROUP THAT WILL PROPOSE REFORMS TO THE PRESIDENT THEY
DIDN'T WANT TO LOSE THE LEAD ON THIS ISSUE

WHITE HOUSE AIDES SAID MR CLINTON WILL EMPHASIZE THE NEED FOR CHANGING THE
WELFARE SYSTEM IN HIS STATE OF THE UNION ADDRESS TONIGHT A SPEECH THAT ALSO
WILL STAMP HIS DOMESTIC FOCUS FIRMLY ON HEALTH CARE ANTICRIME AND
WORKERRETRAINING PROGRAMS

BRUCE REED THE WHITE HOUSE DEPUTY POLICY DIRECTOR OVERSEEING THE WELFARE
EFFORT SAID THAT NO TIMETABLE HAS BEEN SET FOR MOVING THE PROPOSAL TO
CONGRESS BUT ADDS AMERICANS SEE THAT HEALTHCARE AND WELFARE SYSTEMS ARE
BOTH IN A CRISIS AND WE NEED TO MOVE QUICKLY TO REFORM BOTH SYSTEMS AT THE
SAME TIME

UNTIL RECENTLY THE WHITE HOUSE PLANNED TO DELAY ITS WELFARE PROPOSAL FOR
FEAR THAT IT WOULD COMPETE FOR MEDIA ATTENTION WITH HEALTHCARE REFORM AS
WELL AS CLUTTER THE LEGISLATIVE CALENDAR ON CAPITOL HILL BOTH ISSUES WILL
BE CONSIDERED BY THE SAME SENATE AND HOUSE COMMITTEES

EVEN BEFORE SEN MOYNIHAN'S COMMENTS WHITE HOUSE AIDES EMPHASIZE MR
CLINTON WAS QUIETLY SHIFTING HIS STANCE RESPONDING TO MEMOS WRITTEN IN LATE
DECEMBER BY TOP STAFF AND OUTSIDE FRIENDS RECOMMENDING WHAT ISSUES HE NEEDS
TO FOCUS ON THIS YEAR AND HIGHLIGHT IN HIS SPEECH TONIGHT

ESPECIALLY COMPELLING SAID ADVISERS WERE ARGUMENTS MADE BY MR REED AND
ANOTHER POLICY ADVISER WILLIAM GALSTON WHO STRESSED THAT THE CENTRAL GOAL
OF HEALTHCARE REFORM MUST BE COMPLEMENTED BY OTHER SOCIAL ISSUES SUCH AS
CRIME AND WELFARE REFORM TO BE ON BEAT WITH THE PULSE OF THE AMERICAN
PEOPLE

MR CLINTON IS WINNING KUDOS FOR NOT MAKING AN ISSUE OUT OF SEN MOYNIHAN'S
REBELLION AND SIMPLY RESPONDING WITH ACTION IT IS SMART TO DO THIS SAID
TONY COELHO THE FORMER DEMOCRATIC HOUSE WHIP IT TAKES CARE OF CONVINCING
THE AMERICAN PEOPLE THAT HE IS A VEHICLE FOR CHANGE AND IT IS POLITICALLY
SHREWD  IT HANDLES THE CONGRESS WELL

WHILE THE HEART OF THE PLAN IS TO PUT A TWOYEAR LIMIT ON BENEFITS AND
PROVIDE EDUCATION AND TRAINING SO WELFARE RECIPIENTS RETURN TO THE WORK
FORCE MR CLINTON MUST QUICKLY MAKE A HOST OF DELICATE DECISIONS SUCH AS
HOW TO PAY FOR IT HOW QUICKLY TO PHASE IN THE NEW PLAN AND HOW TO SHAPE A
JOBS PROGRAM THE PRESIDENT SAID AIDES MAY BEGIN MAKING THOSE DECISIONS
NEXT WEEK

AL FROM THE PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL
BELIEVES THAT THE PRESIDENT'S SHIFT TO HIGH GEAR ON WELFARE COULD CREATE
PROBLEMS FOR REPUBLICANS WHO HAVE LONG WIELDED SOCIAL ISSUES SUCH AS CRIME
AND WELFARE TO WIN PRESIDENTIAL ELECTIONS

CONGRESSIONAL REPUBLICANS DISAGREE THEY SAY THAT TOUGH MEDICINE ON WELFARE
REFORM WILL ALIENATE PRECISELY THE POLITICAL BLOC THAT MR CLINTON NEEDS FOR
HEALTH CARE BLACK AND LIBERAL DEMOCRATS

PRESIDENT CLINTON TONIGHT ALSO WILL URGE CONGRESS TO PASS LEGISLATION
DESIGNED TO COMBAT CRIME PARTICULARLY PROVISIONS THAT WOULD PUT 100000
POLICE OFFICERS ON THE BEAT AND PROVIDE BOOT CAMPS AS AN ALTERNATIVE TO
PRISON FOR NONVIOLENT OFFENDERS HE ALSO FAVORS LIFE IMPRISONMENT FOR THOSE
CONVICTED OF THREE VIOLENT OFFENSES

THE HOUSE AND SENATE PASSED DIFFERING MEASURES TO FIGHT CRIME LATE LAST
YEAR THE HOUSE WILL HOLD HEARINGS ON A NUMBER OF THE PENALTY PROVISIONS IN
THE SENATE'S LEGISLATION THAT HAVEN'T BEEN CONSIDERED BY THE HOUSE

ADMINISTRATION OFFICIALS WILL URGE CONGRESS TO KILL OR MODIFY SOME
PROVISIONS IN THE SENATEPASSED CRIME BILL THAT WOULD FEDERALIZE WHAT ARE
NOW STATE CRIMES THEY WILL ARGUE FOR EXAMPLE THAT A MEASURE SPONSORED BY
SEN ALFONSE D'AMATO R NY TO FEDERALIZE VIOLENT CRIMES COMMITTED WITH
A HANDGUN WOULD OVERLOAD THE FEDERAL CRIMINAL JUSTICE SYSTEM

JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9401250024 940125 SEC CHIEF
LEVITT URGES SURVEILLANCE OF MUNI MARKET  BY CHRISTI HARLAN 
STAFF REPORTER OF THE WALL STREET JOURNAL

ARTHUR LEVITT CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION SAID
ALLEGATIONS OF A VARIETY OF WRONGS IN THE MUNICIPALBOND MARKET MAKE IT
CLEAR TO ME THAT WE NEED A STRONG ENFORCEMENT PRESENCE TO ENHANCE INVESTOR
CONFIDENCE

IN A SPEECH YESTERDAY AT A BOND CONFERENCE IN NEW YORK MR LEVITT CALLED
FOR A STATEOFTHEART SURVEILLANCE SYSTEM TO HELP EXPOSE CORRUPTION AND
ABUSE IN THE MUNICIPALBOND MARKET HE DIDN'T OFFER ANY DETAILS ABOUT THE
SURVEILLANCE SYSTEM OTHER THAN TO SAY IT MAY BE EXPENSIVE OTHER SUCH
SYSTEMS OVERSEEN BY THE AGENCY INVOLVE EXTENSIVE RECORDKEEPING BY MARKET
PARTICIPANTS

IN ADDITION TO DELIVERING THE VEILED THREAT OF ENFORCEMENT ACTIONS MR
LEVITT REITERATED THE SEC'S INTENTION TO SHED MORE LIGHT ON MUNICIPALBOND
TRANSACTIONS FROM THE SELECTION OF UNDERWRITERS TO THE SALE OF SECURITIES
IN THE SECONDARY MARKET

WHEN ACCURATE INFORMATION ON MARKET PRICING IS HARD TO COME BY THE
POTENTIAL FOR FRAUD AND ABUSE IS MUCH GREATER HE SAID WE BELIEVE THAT
GREATER TRANSPARENCY IN THE TRADING OF THE 50 MOSTACTIVE ISSUES WOULD
PROVIDE PUBLICLY AVAILABLE PRICING INFORMATION ON BENCHMARK SECURITIES MR
LEVITT SUGGESTED THAT MARKET PARTICIPANTS CONSIDER AN ELECTRONICREPORTING
SYSTEM SIMILAR TO THAT ACTIVATED LAST YEAR FOR THE MOSTACTIVE JUNK BONDS

THE SEC CHAIRMAN ALSO STRONGLY URGED MUNICIPALBOND ISSUERS TO AWARD BOND
BUSINESS IN A COMPETITIVEBIDDING PROCESS RATHER THAN BY NEGOTIATING WITH A
SINGLE UNDERWRITER NOTING THAT 75 OF THE DOLLAR VOLUME OF LONGTERM BOND
OFFERINGS ARE NEGOTIATED OFFERINGS HE CALLED ON ISSUERS WHO ARE EXEMPT
FROM SEC REGULATION AND FILING REQUIREMENTS TO BE MORE MINDFUL OF THE
PUBLIC TRUST

ISSUERS DETERMINE WHAT THE OFFERING PARTICIPANTS WILL BE PAID BY
CONTROLLING BOND ALLOCATIONS AND PRIORITY PROVISIONS AND BY CAPPING FEES
MR LEVITT SAID IDEALLY ISSUERS USE THEIR EXPANDED CONTROL IN THE PUBLIC
INTEREST THE DANGER OF COURSE IS THAT THIS CONTROL COULD ALSO BE USED TO
DISPENSE POLITICAL PATRONAGE TODAY I CALL ON EVERY ISSUER TO EVALUATE
CAREFULLY WHETHER ITS ACTIONS SERVE A PUBLIC PURPOSE

SEPARATELY MR LEVITT ESTABLISHED A CONSUMERAFFAIRS ADVISORY COMMITTEE TO
APPRISE THE SEC OF ISSUES AFFECTING INDIVIDUAL INVESTORS THE SEC SAID THE
COMMITTEE'S MEMBERS AS YET TO BE APPOINTED WILL INCLUDE REPRESENTATIVES OF
CONSUMER OR INVESTOR ORGANIZATIONS SECURITIES MARKET PARTICIPANTS AND
PROFESSIONALS REGULATORY ENTITIES AND THE PUBLIC 9401250023 940125 WHO'S
NEWS HILTON HOTELS CORP

HILTON HOTELS CORP BEVERLY HILLS CALIF ROBERT L JOHNSON WAS ELECTED
A DIRECTOR OF THE GAMING AND HOSPITALITY CONCERN SUCCEEDING JOHN V
GIOVENCO 57 YEARS OLD WHO RESIGNED LAST YEAR MR JOHNSON 47 IS CHAIRMAN
OF BET HOLDINGS INC PARENT COMPANY OF BLACK ENTERTAINMENT TELEVISION
9401250022 940125 REVIEW & OUTLOOK EDITORIAL JAPAN DERAILS

YES THE JAPANESE UPPER HOUSE'S REJECTION OF POLITICAL REFORM IS A BLOW TO
THE YOUNGISH TURKS WHO GOT IT THAT FAR BUT IT ISN'T OVER 'TIL IT'S OVER WE
DON'T THINK IT'S OVER THE ROTATION OF PRIME MINISTERS IS PROBABLY GOING TO
CONTINUE UNTIL A GENUINE EFFORT IS MADE TO CLEAN UP NAGATACHO

FOR ONE THING REGARDLESS OF FRIDAY'S VOTE THE BREAKUP OF THE PARTY SYSTEM
IS PROCEEDING APACE THE LIBERAL DEMOCRATS AND THE SOCIAL DEMOCRATS BOTH
HAVE A LOT TO LOSE THE LDP HAS BEEN HEMORRHAGING MEMBERS SINCE THE BIG JULY
CRACKUP AND THE SDP CAN'T SURVIVE ITS INTERNAL CONTRADICTIONS MUCH LONGER

SECOND THE LONG RECESSION IS FORCING MANY OF THOSE ONCE CLOSELY ASSOCIATED
WITH THE NOTION OF JAPAN INC TO RETHINK THE WAY THE ECONOMY FUNCTIONS THE
ECONOMY HAS SLUMPED FOR MOST OF THE '90S AND ALL THE USUAL CURES HAVE
FAILED THE ECONOMIC PLANNING AGENCY SAYS RECOVERY MAY NOT OCCUR UNTIL
MID1995 NOR GIVEN INTERNATIONAL POLITICAL CONSTRAINTS CAN JAPAN EXPORT
ITS WAY OUT OF RECESSION

THE ONLY OPTION AS EVEN THE MANDARINS AT THE MINISTRY OF FINANCE NOW
GRUDGINGLY AGREE IS FOR DOMESTIC CONSUMPTION TO LIFT JAPAN OUT OF THE
DOLDRUMS TO DO SO REQUIRES TAX CUTS AND DEREGULATION WE DOUBT THAT THE OLD
POLITICAL SYSTEM IS UP TO THIS

ANOTHER REASON TO BELIEVE THAT REFORM ISN'T DEAD IS THAT THE MOST TRENCHANT
ANALYSIS OF THE JAPANESE POLITICAL SYSTEM HAS COME FROM PEOPLE WHO KNOW
EVERY CRANNY OF THE SYSTEM AND HAVE DECIDED IT'S ROTTEN WE ARE THINKING
HERE OF FORMER LDP LOYALISTS LIKE ICHIRO OZAWA TSUTOMU HATA AND KAZUO
AICHI SOME HAVE LIKENED MR OZAWA'S POSITION ON REFORM TO HAVING A FOX
GUARD THE HENHOUSE WE WOULD NOTE THAT THINKING LIKE A FOX MAKES IT POSSIBLE
TO BUILD A MORE SECURE HENHOUSE

PRIME MINISTER HOSOKAWA AND HIS ASSOCIATES DESERVE GREAT CREDIT FOR GETTING
THIS CLOSE THE PRIME MINISTER HAS DONE SOMETHING UNUSUAL IN THE DIET 
ENUNCIATED A PRINCIPLE AND STUCK TO IT EVEN IF HE IS TOSSED OUT HE HAS
LEFT A DISTINCTIVE LEGACY WE DON'T THINK ANY PREVIOUS JAPANESE GOVERNMENT
COULD HAVE OPENED ALBEIT MARGINALLY THE HALLOWED RICE MARKET MR HOSOKAWA
DID AN ACTION SO STRIKING IN ITS SYMBOLISM THAT SOME JAPANESE REFER TO IT
AS THE THIRD OPENING AFTER THE 19THCENTURY MEIJI RESTORATION AND THE
POSTWAR ECONOMIC MIRACLE

IN ITS UNFAMILIAR ROLE AS POLITICAL OPPOSITION THE LIBERAL DEMOCRATIC PARTY
PLAYED THE LARGEST PART IN KILLING THIS LEGISLATION WITH AN ABLE ASSIST
FROM SDP DEFECTORS HAVING RUN THIS EFFORT OFF THE RAILS WE'D SAY THE LDP
NOW HAS A RESPONSIBILITY TO GET THE PROCESS BACK ON TRACK PERHAPS BY
WORKING OUT COMPROMISE LEGISLATION WITH THE HOSOKAWA COALITION BEFORE THE
DIET GOES HOME JANUARY 29

PERHAPS THE BEST COURSE IS FOR THE JAPANESE TO HOLD THE LDP TO ITS OWN WORDS
OF 1989 OF COURSE IT IS NOT SO EASY TO REFORM THE LONGPRESERVED SYSTEM
BUT IN ORDER TO RECOVER THE PEOPLE'S CONFIDENCE IN POLITICS IT IS TIME FOR
THE PARTY TO DISPLAY MORALITY AND A SENSE OF RESPONSIBILITY OF POLITICIANS
9401250021 940125 TYSON FOODS MAKES 329 MILLION OFFER FOR WLR FOODS 
 BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL

TYSON FOODS INC THE NATION'S BIGGEST POULTRY COMPANY MADE AN UNSOLICITED
BID TO ACQUIRE WLR FOODS INC A CHICKEN AND TURKEY PROCESSOR FOR 30 A
SHARE OR 329 MILLION

THE BID WHICH TYSON ANNOUNCED AFTER THE NASDAQ STOCK MARKET CLOSED
YESTERDAY REPRESENTS A 57 PREMIUM OVER THE 19 CLOSING FOR WLR'S STOCK IN
A LETTER TO WLR'S BOARD TYSON'S CHAIRMAN DON TYSON SAID THE SPRINGDALE
ARK CHICKEN COMPANY WOULD PREFER AN ALLCASH DEAL BUT WOULD CONSIDER
NEGOTIATING A STOCKANDCASH TRANSACTION

WLR BASED IN HINTON VA ISSUED A STATEMENT LAST NIGHT SAYING ITS BOARD
WOULD EVALUATE THE TYSON PROPOSAL BUT THE STATEMENT ADDED THAT THE
DIRECTORS BELIEVE THAT THE LONGTERM BEST INTERESTS OF WLR AND ITS
SHAREHOLDERS WOULD BE BEST SERVED BY WLR REMAINING INDEPENDENT JOHN FLORA
WLR'S COUNSEL SAID HE COULDN'T ELABORATE ON THE STATEMENT

IN HIS LETTER TO WLR'S BOARD MR TYSON ASKED FOR AN ANSWER BY FEB 4 AFTER
WHICH HE SAID THE ACQUISITION PROPOSAL WOULD EXPIRE THE LETTER INDICATED
THAT TYSON WAS GOING PUBLIC WITH ITS OFFER ONLY AFTER BEING REBUFFED IN AN
ATTEMPT TO MEET WITH WLR'S BOARD

TYSON DOESN'T TAKE NO FOR AN ANSWER VERY EASILY SAID NAPOLEON OVERTON AN
ANALYST AT MORGAN KEEGAN CITING THE COMPANY'S SUCCESSFUL BATTLE TO ACQUIRE
RIVAL HOLLY FARMS CORP FOR 129 BILLION IN 1989

AN ACQUISITION OF WLR BY TYSON WOULD SHARPLY ACCELERATE TYSON'S ALREADY
AMBITIOUS EXPANSION THIS MONTH THE COMPANY WHICH ALSO HAS INTERESTS IN
BEEF PORK AND SEAFOOD SAID IT WILL BUILD FOUR CHICKEN PROCESSING PLANTS
COMBINED WITH SOME MOVES ANNOUNCED LAST YEAR TYSON'S INTERNAL EXPANSION
PLANS ALONE WILL COST ABOUT 400 MILLION AND INCREASE ITS CHICKEN PROCESSING
CAPACITY BY 30

TYSON'S ANNOUNCEMENT YESTERDAY DIDN'T SAY HOW IT WOULD FINANCE AN
ACQUISITION OF WLR TYSON OFFICIALS COULDN'T BE REACHED FOR COMMENT LAST
NIGHT

WLR IS THE NATION'S EIGHTHLARGEST POULTRY PROCESSOR AND ONE OF THE TOP
THREE US TURKEY PROCESSORS ACCORDING TO TYSON LIKE ITS SUITOR WLR SELLS
FRESH FROZEN AND COOKED CHICKEN AND TURKEY PRODUCTS TO RETAIL OUTLETS
RESTAURANTS AND OTHER INSTITUTIONAL CUSTOMERS IN FISCAL 1993 ENDED JULY 3
WLR EARNED 146 MILLION ON SALES OF 6167 MILLION IN ITS FISCAL YEAR
ENDED OCT 2 TYSON EARNED 1803 MILLION ON SALES OF 47 BILLION
9401250020 940125 LEISURE & ARTS BOOK MAKING UPDIKE STYLE A ROAD TRIP
TO SCRANTON  BY AMY GAMERMAN

I TAKE MORE INTEREST THAN MANY AUTHORS IN THE PHYSICAL BOOK JOHN UPDIKE
SAID FROM THE PASSENGER SEAT

ON THIS DAY MR UPDIKE'S INTEREST WAS TAKING HIM TO SCRANTON PA IN A
RENTED PONTIAC BONNEVILLE WE WERE ON A FIELD TRIP TO HADDON CRAFTSMEN THE
BOOK MANUFACTURER THAT HAS MADE MR UPDIKE'S BOOKS SINCE 1969 TO WATCH HIS
NEW NOVEL BRAZIL AN INTERRACIAL LOVE STORY WITH A STRANGE TWIST 
ROLL OFF THE PRODUCTION LINE

THE ROAD TRIP HAD THE FEEL OF AN UPDIKE STORY IN FACT THE AUTHOR HAS
DEVOTED MUCH INK TO HIS FASCINATION WITH PRINT THE PAPERY
SELFMAGNIFICATION AND IMMORTALITY OF PRINTED REPRODUCTION  WAS CENTRAL
TO MY ARTISTIC IMPULSE HE DECLARED IN HIS MEMOIR SELFCONSCIOUSNESS 
 THE IDEA OF WRITING A NOVEL CAME EVEN LATER AND PRESENTED ITSELF TO ME
AND STILL DOES AS MAKING A BOOK BUT UNTIL NOW HE HAD NEVER SEEN ONE OF
HIS BOOKS BEING MADE

MR UPDIKE WAS DRESSED FOR THE BIG DAY LIKE AN IVY LEAGUE PROFESSOR IN A
TRILBY HAT TWEED JACKET AND A GREEN WOOL SCARF WITH A PIECE OF PRICE TAG
STILL STAPLED TO IT HE GREW UP IN PENNSYLVANIA IN THE SMALL TOWN OF
SHILLINGTON OUTSIDE READING AND SEEMED TICKLED TO BE RETURNING TO HIS OLD
TURF WHEN HE WASN'T DELIVERING A RUNNING COMMENTARY ON THE SCENERY THIS
IS A MIRTHLESS HIGHWAY HE RECALLED THE SEDUCTIVE ALLURE OF HINTZ'S A
READING STATIONERY STORE WHERE THE ROMANCE OF OFFICE EQUIPMENT PAPER 
GOT TO ME AND HIS EARLY DREAM OF BECOMING A CARTOONIST

MY MOTHER KEPT ALL THESE THINGS SOUVENIRS OF MY BOYHOOD PRINT INFATUATION
I FOUND THEM WHEN SHE DIED HE SAID I WAS TRYING TO BECOME A NEW YORKER
CARTOONIST AND THERE WERE BOOKS TELLING YOU HOW TO DO IT RUBBER STAMPS
THAT YOU'D USE TO STAMP YOUR DRAWINGS ROUGHS AND ACTUAL INKED DRAWINGS

HE STRUCK OUT WITH THE NEW YORKER BUT THE CHATTERBOX HIS HIGHSCHOOL
NEWSPAPER PUBLISHED HIS DRAWINGS AND STORIES LATER ON AS A COPY BOY FOR
THE READING EAGLE HE WAS FASCINATED BY THE WORKINGS OF THE LINOTYPE
MACHINE I WOULD SEE THEM TURNING WORDS INTO METAL HE SAID IT WAS A
ROMANTIC TYPE OF INDUSTRIALIZATION THE TALL MACHINE THE CLATTER OF THE
MATRICES FALLING INTO IT MEN WITH GREEN EYE SHADES SITTING THERE  

HE GAVE HIS MOST FAMOUS CREATION RABBIT ANGSTROM A JOB AS A LINOTYPER IN
BREWER PA IN RABBIT REDUX THE SECOND NOVEL IN HIS RABBIT TETRALOGY
ALTHOUGH LINOTYPING BECOMES OBSOLETE DURING THE COURSE OF THAT NOVEL AND
RABBIT LOSES HIS JOB ALL FOUR RABBIT BOOKS INCLUDING THE 1990 RABBIT
AT REST WERE SET BY LINOTYPE

THE GESTURE WASN'T LOST ON MR UPDIKE WHO IS FAMOUS IN THE KNOPF PRODUCTION
DEPARTMENT FOR FUSSING OVER THE LOOK OF HIS BOOKS YOU MAY NOT BE ABLE TO
JUDGE AN UPDIKE BOOK BY ITS COVER BUT YOU CAN SPOT ONE IN A MINUTE IT'S
USUALLY ABOUT 5 1/4 INCHES WIDE BY 8 INCHES HIGH WITH SOME VARIATIONS AND
HAS SILVER AND GOLD FOIL STAMPING ON THE SPINE THE TEXT IS SET IN JANSON
TYPE THAT'S THE DESIGN THAT WAS CREATED FOR MR UPDIKE'S FIRST NOVEL THE
POORHOUSE FAIR 1959 AND HE HAS STUCK TO IT EVER SINCE FOR ONE THING
CHANGING IT WOULD SPOIL THE AESTHETICS OF HIS HOME LIBRARY

I HAVE MY BOOKS NAKED NAKED SPINES LINED UP HE EXPLAINED THE TITLES ARE
ALL STAMPED AT THE SAME HEIGHT ON THE SPINES EXCEPT FOR THE SLIMMER BOOKS
OF POETRY WHICH ARE STAMPED LENGTHWISE AND FORM A NEAT LINE ACROSS HIS
BOOKSHELF IT WAS QUITE EXQUISITE WHEN THERE WERE FIVE NOW THERE ARE ABOUT
40 HE SIGHED

HADDON CRAFTSMEN WHICH WAS RECENTLY ACQUIRED BY PRINTING GIANT RR
DONNELLEY & SONS CO IS ONE OF THE OLDEST BOOK MANUFACTURERS IN THE
COUNTRY THE BINDERY IS IN A 1901 FACTORY BUILDING WITH WOOD FLOORS HIGH
CEILINGS AND A STAINEDGLASS WINDOW SHOWING SCIENCE INSTRUCTING INDUSTRY

OVER A SERVEYOURSELF LUNCH OF CHICKEN AND PASTA SALAD A GROUP OF HADDON
CRAFTSPEOPLE PRESENTED MR UPDIKE WITH A PEN STAND MADE OF PENNSYLVANIA COAL
AND AN OVERSIZE COAL BELT BUCKLE FOR YOUR LEISURE TIME THEN DON VISPI
A BEEFY GUY IN A STARCHED WHITE SHIRT WHO LOOKED AS IF HE MIGHT HAVE BEEN A
CHARACTER IN THE RABBIT SERIES BUT IS IN FACT HADDON'S SENIOR VICE
PRESIDENT EXPLAINED WHAT GOES INTO MAKING AN UPDIKE BOOK

WE BURST THROUGH THE SPINE IT'S CALLED BURSTBINDING SEE THAT JOHN
SAID MR VISPI SHOWING OFF A REAM OF COVERLESS PAGES WHICH ARE PUNCTURED
OR BURST IN ABOUT SEVEN PLACES ALONG THE SPINE TO ADMIT THE GLUE THAT
BINDS THEM TOGETHER HE ENCOURAGED MR UPDIKE TO ASK HIS WORKERS QUESTIONS
THEY KNOW ALL YOUR BOOKS THEY'VE DONE THEM ALL

THEN IT WAS ONTO THE NOISY FACTORY FLOOR WHERE A MACHINE WAS BINDING
SIGNATURES THE TERM FOR GATHERED PAGES SLICKING THE SPINES WITH VISCID
WHITE PRIMER GLUE AND FERRYING THEM OVER GLOWING GASHEAT DRYERS A SET OF
METAL CHOPPERS TRIMMED THE BOUND PAGES TO THE APPROPRIATE LENGTH AND SENT
THEM ON TO A MAN WITH A SPRAY GUN LOADED WITH YELLOWGREEN VEGETABLE DYE
MR UPDIKE WATCHED AS THE MAN SPRITZED THE TOPS OF COPY AFTER COPY OF
BRAZIL WITH THE DYE TOPSTAINING THE PAGES THEN HIS EYE WANDERED TO THE
SHELVES FILLED WITH SPOOLS OF HEADBANDS CLOTH RIBBONS USED TO LINE A
BOOK'S BINDING UPDIKE BOOKS DON'T HAVE HEADBANDS

EVERYBODY HERE GETS HEADBANDS BUT YOU SAID TRACY CABANIS KNOPF'S SENIOR
PRODUCTION MANAGER

I DON'T MIND HEADBANDS I THINK THEY'RE NICE HE SAID A LITTLE LONGINGLY
I ALWAYS THOUGHT IT SAVED MONEY

TOO LATE NOW COPIES OF BRAZIL WERE ALREADY BEING FITTED INTO THEIR YELLOW
CLOTH CASES OR COVERS WITHOUT HEADBANDS STACKS OF EMPTY YELLOW CASES
ALMOST AS TALL AS MR UPDIKE HIMSELF WAITED DOWN IN THE FACTORY BASEMENT A
MACHINE WAS IMPRESSING THE CASES WITH THE KNOPF BORZOI COLOPHON AND STAMPING
THEM WITH THE TITLE AND AUTHOR'S NAME IN GOLD AND SILVER FOIL TRANSFERRED
FROM SHINY RIBBONS AS GAUDY AS CHRISTMAS WRAP

I CAN HAVE THIS REALLY MR UPDIKE ASKED AS A WORKER HANDED HIM A NEWLY
STAMPED CASE

BACK UPSTAIRS STILL CLUTCHING THE EMPTY CASE AND A FRAGMENT OF USED GOLD
STAMPING FOIL HE WATCHED AS BRAZIL TEXTS WERE MARRIED TO THEIR YELLOW
CASES WITH GLUE THEN THE BOOKS WERE PASSED ON TO A GIZMO THAT FLIPPED THE
COVERS OPEN WITH SPATULALIKE TONGS AND SLIPPED THE JACKETS ON A CONVEYOR
BELT BORE THE FINISHED BOOKS TO TWO WORKERS WHO WERE BUNDLING THEM INTO
CARTONS MR UPDIKE PICKED UP A COPY OF BRAZIL FROM THE BELT IT WAS AS
WARM AS A FRESHLY LAID EGG

IT SEEMS A LOT OF TROUBLE DOESN'T IT HE MURMURED LOOKING FAINTLY
APPALLED AT THE SIGHT OF SCORES OF HIS BOOKS BEING CHURNED OUT LIKE FIG
NEWTONS

AS IF THAT WEREN'T ENOUGH A YOUNG WOMAN FROM THE COUNTY COMMISSIONERS'
OFFICE ARRIVED BEARING A PLAQUE AND THE NEWS THAT TODAY HAD BEEN PROCLAIMED
JOHN UPDIKE DAY IN LACKAWANNA COUNTY

I'VE NEVER HAD A DAY BEFORE HE SAID DO I GET FREE DRINKS IN ALL THE
BARS

NO BUT HE DID GET TO SIGN TWO STACKS OF BRANDNEW COPIES OF BRAZIL FOR
VARIOUS HADDON AND DONNELLEY EXECUTIVES A TASK HE GREETED WITH THE SAME
UNFLAPPABLE GOOD HUMOR HE HAD SHOWN ALL DAY

BUT WHEN MR UPDIKE GOT BACK IN THE PONTIAC LUGGING HIS COAL BELT BUCKLE
HIS PEN STAND HIS EMPTY CASE HIS USED FOIL RIBBON HIS JOHN UPDIKE DAY
PLAQUE AND HIS OWN COPY OF BRAZIL IT WAS CLEAR THAT THE ROMANCE OF BOOK
MAKING HAD BEEN SOMEWHAT TARNISHED BY HIS ENCOUNTER WITH THE REAL THING

IT'S SLIGHTLY MINDANNIHILATING ISN'T IT HE SAID AS WE BEGAN THE
THREEHOUR DRIVE BACK TO NEW YORK HE PAUSED IT'S FAINTLY APPALLING TO SEE
YOUR EFFORTS MULTIPLYING NOT JUST ONE JACKET SHINING BUT OODLES AND
OODLES

AND HE WAS HAVING SECOND THOUGHTS ABOUT THE COLOR OF HIS CASES

IT DID SEEM A POISONOUS YELLOW HE MURMURED TO MS CABANIS

A FEW DAYS LATER WHEN WE SPOKE ON THE PHONE MR UPDIKE WAS FEELING BETTER
ABOUT HIS CASES THE YELLOW WHICH I WAS AMAZED AND KIND OF DISGUSTED BY
LOOKS GOOD IN THE ROW HE SAID REFERRING TO THE ROW OF UPDIKE BOOKS IN HIS
BOOKCASE

FLIPPING THE FRESHLY MINTED BOOK OPEN HOWEVER MADE HIM TURN GREEN

I'VE FOUND A TYPO HE SAID 9401250019 940125 POLITICS & POLICY 
CLINTON NOMINATES PERRY FOR DEFENSE SECRETARY BUT STILL FACES DOUBTS
ABOUT STRENGTH OF HIS TEAM  BY THOMAS E RICKS AND MICHAEL K FRISBY
 STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON PRESIDENT CLINTON NOMINATED DEPUTY DEFENSE SECRETARY WILLIAM
PERRY TO MOVE UP TO THE TOP SLOT AT THE PENTAGON BUT STILL FACES DEEP
DOUBTS ABOUT THE STRENGTH OF THE ADMINISTRATION'S NATIONALSECURITY TEAM

BOBBY INMAN PROPOSED HAVING MR PERRY REPLACE HIM AS THE NOMINEE FOR DEFENSE
SECRETARY LAST WEEK WHEN MR INMAN WITHDREW HIS OWN NOMINATION PEOPLE
FAMILIAR WITH THE SITUATION SAID MR INMAN TOLD WHITE HOUSE AIDES THAT HIS
VIEWS WERE LARGELY THE SAME AS MR PERRY'S AND THAT THE BIGGEST DIFFERENCE
BETWEEN THE TWO WAS THAT THE DEPUTY DEFENSE SECRETARY POSSESSED FAR MORE
PATIENCE THAN HE

BILL PERRY IS A REAL PRO YOU CAN DEPEND ON HIM PRESIDENT CLINTON SAID
YESTERDAY IN ANNOUNCING THE NOMINATION AT THE WHITE HOUSE

MR PERRY 66 YEARS OLD IS A MATHEMATICIAN AND MILITARY TECHNOLOGIST WHOM
SEN SAM NUNN D GA CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE
HAS CALLED THE FATHER OF STEALTH TECHNOLOGY MR PERRY WHO IS HELD IN
HIGH REGARD ON CAPITOL HILL FOR THE CLARITY AND PRECISION OF HIS TESTIMONY
IS EXPECTED TO WIN SENATE CONFIRMATION EASILY

SEN DAN COATS ONE OF THE MOST CONSERVATIVE MEMBERS OF THE ARMED SERVICES
PANEL SAID YESTERDAY THAT MR PERRY IS WELLLIKED AND WELLRESPECTED HIS
ONLY CONCERN THE INDIANA REPUBLICAN ADDED IS THAT THE NO 1 JOB REQUIRES
COMPLETELY DIFFERENT SKILLS YOU NEED TO BE A POLITICAL OPERATOR A BUDGET
BATTLER SOMEONE WHO CAN SIT DOWN WITH WORLD LEADERS

BUT IN HIS YEAR IN THE PENTAGON'S NO 2 SLOT MR PERRY HAS SEEN MORE OF THE
WORLD THAN MOST DEFENSE DEPUTIES PARTLY BECAUSE HE HAS PINCHHIT WHEN
HEALTH PROBLEMS PREVENTED DEFENSE SECRETARY LES ASPIN FROM TAKING SCHEDULED
TRIPS ABROAD THE PRESIDENT SAID YESTERDAY THAT MR PERRY PLAYED AN
IMPORTANT ROLE IN THE RECENT BREAKTHROUGH TO ELIMINATE UKRAINE'S NUCLEAR
WEAPONS

ROBERT GATES THE FORMER DIRECTOR OF CENTRAL INTELLIGENCE SAID YESTERDAY
THAT MR PERRY HAS A VERY CLEARHEADED VIEW OF THE WORLD BUT MR PERRY HAS
LEFT LITTLE PUBLIC RECORD OF HIS VIEWS ON A BROAD RANGE OF FOREIGNPOLICY
ISSUES EVEN THOUGH HE HAS LONG PARTICIPATED IN FOREIGNPOLICY DISCUSSIONS
AT THINK TANKS

MR PERRY CAN BE FORCEFUL BUT HIS GENERALLY LOWKEY EVEN BLAND MANNER IS
SIMILAR TO THAT OF SECRETARY OF STATE WARREN CHRISTOPHER AND NATIONAL
SECURITY ADVISER ANTHONY LAKE BECAUSE OF HIS RELATIVE LACK OF
FOREIGNPOLICY EXPERIENCE MR PERRY'S NOMINATION DOESN'T APPEAR TO BRING A
STRONG NEW VOICE TO A NATIONAL SECURITY TEAM THAT CRITICS HAVE SAID NEEDS
BOLSTERING

BUT IN DEMOCRATIC POLITICAL CIRCLES A CONSENSUS IS GROWING THAT MR CLINTON
HAS ANOTHER MAJOR FOREIGNPOLICY PROBLEM MR LAKE MANY DEMOCRATS BELIEVE
THAT MR LAKE HASN'T PROVIDED THE VISION COORDINATION OR HIGH PUBLIC
PROFILE THAT MR CLINTON NEEDS MR CLINTON HAS INVESTED LITTLE OF HIS OWN
PRESTIGE IN FOREIGN POLICY AND THE REST OF THE TEAM IS FILLED WITH BLAND
MANAGEMENT TYPES SUCH AS MR CHRISTOPHER AT THE STATE DEPARTMENT AND NOW
MR PERRY AT THE PENTAGON

MR CLINTON HAS TAKEN SMALL STEPS TO ADDRESS THE PROBLEMS VICE PRESIDENT AL
GORE PLAYS A LARGER ROLE AS SPOKESMAN ON FOREIGN POLICY AND STROBE TALBOTT
IS MOVING INTO THE NO 2 SPOT AT THE STATE DEPARTMENT TO HELP FILL A VOID
THERE BUT DEMOCRATS ARE CONCERNED WHETHER THAT WILL BE ENOUGH PARTICULARLY
SINCE THEY NOW EXPECT THE REPUBLICANS TO HIT THE ADMINISTRATION HARD ON
NATIONALSECURITY ISSUES WHILE MR CLINTON IS DOING WELL ON DOMESTIC ISSUES

EVEN THE UNVEILING OF MR PERRY WAS LOW KEY INSTEAD OF A GRAND ROSE GARDEN
CEREMONY LIKE THE ONE HELD FOR MR INMAN THE DEFENSE SECRETARY WAS
INTRODUCED TO A SMALL GROUP OF REPORTERS AND MR CLINTON GREW TESTY WHEN HE
WAS ASKED WHAT MR PERRY BROUGHT TO THE JOB THAT MR ASPIN DIDN'T PROVIDE
I DON'T THINK THE TWO THINGS ARE RELATED MR CLINTON SAID

MR PERRY'S VIEWS ARE STRONGEST ON THE NEED FOR AN ACTIVIST POLICY TO HELP
THE DEFENSE INDUSTRY STAY HEALTHY WHILE IT SHRINKS AN AREA THAT APPEARS
TO BE HIS FIRST LOVE INDEED IN HIS WHITE HOUSE COMMENTS YESTERDAY HE
SAID WE READ ABOUT THE PROBLEMS EVERY DAY IN MOGADISHU SARAJEVO
PYONGYANG BUT WE MUST NOT LOSE SIGHT OF THE OPPORTUNITIES IN THIS NEW
POSTSOVIET WORLD BUT THE SPECIFIC OPPORTUNITY HE THEN OFFERED AS AN
EXAMPLE WASN'T A GLOBAL VISION OF SAY EXPANDING DEMOCRACY OR FREEMARKET
CAPITALISM BUT INSTEAD OF REFORMING THE PENTAGON'S SYSTEM OF BUYING WEAPONS
AND OTHER GOODS

MR PERRY WHO SERVED AS THE PENTAGON'S ACQUISITION CZAR DURING THE CARTER
YEARS HAS EXPRESSED A KIND OF TOUGH LOVE APPROACH TO THE DEFENSE
INDUSTRY HE HAS SHOWN SYMPATHY FOR BELEAGUERED DEFENSE CONTRACTORS BUT HAS
REPEATEDLY EMPHASIZED THAT HE DOESN'T INTEND TO SUBSIDIZE COMPANIES TO KEEP
THEM ALIVE EITHER DIRECTLY BY GIVING THEM CONTRACTS OR INDIRECTLY BY
ALLOWING THEM TO EXPORT HIGHTECHNOLOGY WEAPONS

DISTURBED FOR EXAMPLE BY A NEWSPAPER ARTICLE LAST SEPTEMBER THAT ASSERTED
THE PENTAGON'S NEW DEFENSE INDUSTRIAL POLICY WAS PARTLY A JOBS PROGRAM HE
TOLD A GROUP OF REPORTERS THAT NOTHING IN THIS PLAN PRESERVES JOBS

AT THE PENTAGON OVER THE LAST YEAR MR PERRY HAS PUSHED A TWOPRONGED
APPROACH FOR HIS DEFENSE INDUSTRIAL POLICY THIS APPROACH DISTINGUISHES
POTENTIAL DUALUSE MANUFACTURERS FROM DEFENSEUNIQUE CONCERNS

UNDER THIS APPROACH MOST OF THE DEFENSE INDUSTRY IS ENCOURAGED TO INTEGRATE
ITSELF INTO THE BROAD COMMERCIAL SECTOR AND GO DUALUSE SERVING THE
PENTAGON AS WELL AS CONSUMER AND INDUSTRIAL MARKETS MR PERRY HAS SAID HE
IS ESPECIALLY INTERESTED IN SEEING DUALUSE PRODUCTION IN FOUR MAIN
INDUSTRIAL AREAS SEMICONDUCTORS COMPUTERS TELECOMMUNICATIONS AND ADVANCED
MATERIALS

ONLY A SMALL RUMP OF THE DEFENSE INDUSTRY THE PART THAT MAKES NUCLEAR
SUBMARINES TANKS AND OTHER PRODUCTS THAT HAVE NO COMMERCIAL APPLICATION 
IS CONSIDERED ELIGIBLE FOR SUBSIDIZATION AS PART OF MR ASPIN'S BOTTOMUP
REVIEW OF HOW TO RESHAPE THE US MILITARY TO FIT THE POSTCOLD WAR WORLD
THE PENTAGON IN SEPTEMBER TOOK THE FIRST STEP IN MAKING THIS POLICY
EXPLICIT SAYING IT WOULD ASK GENERAL DYNAMICS CORP'S ELECTRIC BOAT UNIT TO
BUILD ANOTHER SEAWOLF ATTACK SUBMARINE NOT BECAUSE THE SUB IS NEEDED BUT
TO KEEP ALIVE THE CAPABILITY OF BUILDING SUBMARINES

BECAUSE MR ASPIN APPEARS TO HAVE DEFERRED TO MR PERRY ON QUESTIONS OF
DEFENSE INDUSTRIAL POLICY IN THE PAST YEAR MAJOR CHANGES IN THIS AREA
AREN'T LIKELY

BUT IN THE COMING YEARS MR PERRY MAY BE INCLINED TO SHIFT PENTAGON
SPENDING AWAY SOMEWHAT FROM PROCUREMENT AND MORE TOWARD RESEARCH AND
DEVELOPMENT WHATEVER ELSE WE DO IN CUTTING THE DEFENSE BUDGET HE SAID IN
AN OCTOBER SPEECH WE SHOULD MAINTAIN OUR TECHNOLOGY BASE

TO DO THAT HE QUICKLY WENT ON TO SAY THE PROCUREMENT BUDGET THE MONEY
THAT ACTUALLY GOES TO BUYING THINGS WOULD HAVE TO BE CUT EVEN MORE I
WOULD ESTIMATE THAT THE PROCUREMENT BUDGET  WILL GO DOWN ABOUT 60
BETWEEN 1986 AND 1996 HE SAID THEREFORE THERE'S GOING TO BE EVEN MORE
CONSOLIDATION IN THE DEFENSE INDUSTRY THAN HAS HAPPENED TO DATE

TO FIND THE MONEY TO MAINTAIN R&D SPENDING MR PERRY IS LIKELY TO LOOK FOR
EVEN BIGGER CUTS THAN ALREADY HAVE BEEN MADE IN PERSONNEL AND IN THE DEFENSE
INFRASTRUCTURE SUCH AS DEFENSE DEPARTMENT LABORATORIES AND MILITARY
MAINTENANCE DEPOTS THAT COULD LEAD HIM INTO CONFLICTS BOTH WITH THE
MILITARY AND WITH CONGRESS THE ARMY ESPECIALLY RESENTS THE PLANNED
REDUCTIONS IN FORCE STRUCTURE THAT IT ALREADY FACES AND WOULD BE SURE TO
BALK AT BEING TOLD TO MAKE DEEPER CUTS AND MANY IN CONGRESS JEALOUSLY
PROTECT THE SECURE HIGHWAGE JOBS THAT DEFENSE LABS AND DEPOTS REPRESENT IN
THEIR DISTRICTS AND STATES

FOR MONTHS MR PERRY HAS BEEN WARNING THAT HE WILL PUSH FOR EVEN MORE BASE
CLOSINGS IN THE NEXT SCHEDULED ROUND IN 1995 THAN THE 31 MAJOR CLOSURES
THE PENTAGON PROPOSED THIS YEAR EVEN THOUGH PEOPLE HAVE REGARDED THIS '93
BASE CLOSING AS A MAJOR JOLT I CAN TELL YOU QUITE CANDIDLY THAT THE '95
BASE CLOSING IS GOING TO BE GREATER HE SAID IN THE OCTOBER SPEECH MR
PERRY MAY SEE THOSE CLOSURES AS AN OPPORTUNITY TO HELP THE DEFENSE INDUSTRY
BY PUSHING SOME PENTAGON SPENDING INTO THE PRIVATE SECTOR

ON BEING NOMINATED TO BE DEFENSE SECRETARY

I DIDN'T HAVE TO BE PERSUADED TO TAKE THE JOB

ON REDUCING THE DEFENSE ESTABLISHMENT REDUCING OVERHEAD IS THE MOST
DIFFICULT MANAGEMENT TASK THAT ANYONE CAN CONFRONT

ON CUTTING PERSONNEL AS THE DEFENSE BUDGET DECLINES TRADEOFFS BETWEEN THE
SIZE OF THE FORCE AND THE READINESS OF THE FORCE WILL BE MADE IN FAVOR OF
READINESS

ON SHRINKING THE DEFENSE INDUSTRY THE DEFENSE INDUSTRIAL BASE IS GOING TO
HAVE TO BE CONTRACTED TO ABOUT ONETHIRD OF WHAT IT WAS IN THE MID1980S

ON DEFENSEINDUSTRY SUBSIDIES I EXPLICITLY REJECT THE IDEA OF SUPPORTING A
DEFENSE COMPANY JUST TO KEEP IT IN BUSINESS  WE FULLY EXPECT SEVERAL
DEFENSE COMPANIES TO GO OUT OF BUSINESS AND WE WILL STAND BY AND WATCH THAT
HAPPEN

ON NORTH KOREA IT IS QUITE PREDICTABLE THAT IF NORTH KOREA ENDS UP WITH
ANY NUMBER OF NUCLEAR WEAPONS IN THEIR HANDS THAT THE MINIMUM DANGER WE HAVE
IS THE DANGER OF A NUCLEAR ARMS RACE STARTING IN THE WESTERN PACIFIC AND
THE MAXIMUM DANGER OF COURSE IS THAT NUCLEAR WAR MIGHT ACTUALLY BREAK
OUT

ON SUPPORTING RESEARCH IN DEFENSE TECHNOLOGY FROM DEFENSE INVESTMENT A
STRATEGY FOR THE 1990S DECEMBER 1989 THE TECHNOLOGY BASE PROGRAM SHOULD
FOCUS ON TWO DIFFERENT AREAS THOSE TECHNOLOGIES LIKELY TO LEAD TO DRAMATIC
IMPROVEMENTS IN PERFORMANCE SUCH AS MICROELECTRONICS SUPERCOMPUTERS AND
ADVANCED MATERIALS AND THOSE TECHNOLOGIES LIKELY TO LEAD TO DRAMATIC
REDUCTIONS IN COST SUCH AS COMPUTERAIDED DESIGN TO REDUCE DESIGN COSTS
SIMULATION TECHNOLOGY TO REDUCE TRAINING COSTS AND COMPUTERINTEGRATED
MANUFACTURING TO REDUCE PRODUCTION COSTS 9401250018 940125 MONDAY'S
MARKETS STOCKS BONDS FINISH LOWER DOLLAR IS MIXED  BY
STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL

THE DOW JONES INDUSTRIAL AVERAGE ENDED LOWER AFTER PUSHING FAR INTO RECORD
TERRITORY BOND PRICES FELL AND THE DOLLAR WAS MIXED

THE DOW INDUSTRIALS SLIPPED 169 POINTS TO 391279 STANDARD & POOR'S
500STOCK INDEX FELL 275 TO 47197 AND THE NASDAQ COMPOSITE INDEX DROPPED
363 TO 79065

THE INDUSTRIAL AVERAGE CLIMBED NEARLY 20 POINTS BEFORE REVERSING COURSE
ANALYSTS NOTED THAT EVEN AS THE INDUSTRIALS WERE RALLYING DECLINING STOCKS
OUTNUMBERED ADVANCERS AND OTHER MAJOR INDEXES WERE SLUMPING A SIMILAR
SCENARIO OCCURRED FRIDAY WHEN THE DOW INDUSTRIALS SOARED MORE THAN 22 POINTS
AND SMASHED THROUGH THE 3900 LEVEL

IT WAS A DOW PHENOMENON SAID JOSEPH MCALINDEN MARKET STRATEGIST AT
DILLON READ & CO THE BROAD MARKET WASN'T PARTICIPATING VERY MUCH

TWO STOCKS SAVED THE INDUSTRIAL AVERAGE FROM AN EVEN BIGGER DECLINE
CATERPILLAR WHICH JUMPED 1 5/8 TO 100 1/4 AFTER REPORTING
STRONGERTHANEXPECTED EARNINGS FRIDAY AND INTERNATIONAL BUSINESS MACHINES
WHICH SURGED 3 3/8 TO 58 5/8 IBM WHICH REPORTS ITS FOURTHQUARTER EARNINGS
TODAY GOT A BOOST FROM NEWS THAT FIDELITY IS BUYING THE STOCK ANALYSTS
EXPECT THE COMPANY TO EARN AS MUCH AS 80 CENTS A SHARE THE FIRST QUARTERLY
PROFIT IN MORE THAN A YEAR

WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX LOST 157 TO 11299

IN MAJOR MARKET ACTION

STOCK PRICES FELL VOLUME TOTALED 2969 MILLION SHARES ON THE NEW YORK STOCK
EXCHANGE WHERE 1206 ISSUES FELL AND 934 ROSE

BOND PRICES SLIPPED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN
1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 630

THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT
17508 MARKS AND 11170 YEN COMPARED WITH 17540 MARKS AND 11160 YEN
FRIDAY 9401250017 940125 STILL GROUNDED FOR LORENZO GETTING A NEW
AIRLINE ALOFT IS PROVING TREACHEROUS  HOPING TO WIN US NOD 
DESPITE UNION HOSTILITY HE'LL ADD NEW INVESTORS  A SINGLE BAGGER'
ON SAFETY  BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET
JOURNAL

ALL HE WANTED WAS TO START A TINY AIRLINE JUST FOUR PLANES FERRYING PEOPLE
ON THE CHEAP FROM BALTIMORE TO BOSTON AND ATLANTA

FOR A WEALTHY ENTREPRENEUR WITH HIS EXPERIENCE THAT SHOULDN'T HAVE BEEN TOO
DIFFICULT BUT HE ISN'T JUST ANY ENTREPRENEUR HE IS FRANK LORENZO ONE OF
THE MOST DESPISED MEN BY SOME PARTIES IN AVIATION HISTORY AND THANKS
TO HIS MODEST PROPOSAL HE HAS ONCE AGAIN COME UNDER SCATHING ATTACK BY
LABOR UNIONS SOME FORMER COLLEAGUES AND EVEN OFFICIALS IN THE FEDERAL
GOVERNMENT

ANY DAY NOW THE DEPARTMENT OF TRANSPORTATION IS EXPECTED TO WEIGH IN WITH A
DECISION THAT MAY BAR MR LORENZO FROM LAUNCHING THE AIRLINE HE ONCE
PROPOSED CALLING FRIENDSHIP AIRLINES ALREADY A TRANSPORTATION DEPARTMENT
ADMINISTRATIVE LAW JUDGE HAS COME DOWN AGAINST HIM IN A PRELIMINARY RULING
SAYING THAT MR LORENZO MAY HAVE THE CASH BUT HE DOESN'T HAVE THE SKILLS
AND ISN'T LIKELY TO PLAY BY THE RULES

NOW MR LORENZO IS MAKING ONE LAST EFFORT TO CHANGE THE GOVERNMENT'S MIND
TODAY HE IS EXPECTED TO ANNOUNCE THAT TWO NEW INVESTORS HAVE JOINED HIM IN
ATX INC HIS AIRLINEVENTURE COMPANY DILUTING HIS STAKE TO WELL BELOW 50
FROM 74 THOUGH THE INVESTORS HAVEN'T BEEN IDENTIFIED PEOPLE CLOSE TO MR
LORENZO SAY ONE IS A FORMER HIGHRANKING NEW YORK DEMOCRATIC OFFICIAL AND
THE OTHER IS AN INVESTMENT GROUP BASED IN NEW YORK CLEARLY MR LORENZO
HOPES THAT BY SLASHING HIS OWNERSHIP HE WILL MAKE HIS PROPOSED LITTLE
AIRLINE PALATABLE AT LAST TO HIS FOES

IT'S A GAMBLE THOUGH AND ONE THAT HASN'T PAID OFF FOR OTHERS IF HE SELLS
A MAJORITY STAKE MR LORENZO AND HIS GROUP MAY HAVE TO UNDERGO ANOTHER
SOCALLED FITNESS REVIEW BY THE TRANSPORTATION DEPARTMENT SAYS SAMUEL
PODBERESKY A DEPARTMENT LAWYER AND IF THE DEPARTMENT FINDS THAT HE ISN'T
FIT MR PODBERESKY SAYS THEN SELLING A CONTROLLING INTEREST ISN'T GOING
TO SOLVE THE PROBLEM

THAT MR LORENZO'S OPPONENTS ARRAYED THEMSELVES IN SUCH FORCE AGAINST HIM
SHOWS HOW THE ENMITY AGAINST HIM JUST WON'T DIE HIS UNION FOES MOBILIZED NO
FEWER THAN 57 MEMBERS OF CONGRESS AGAINST HIM AND EVEN BRIEFLY CONSIDERED
BRINGING UP A 1992 DRUNKENDRIVING ARREST TO CLOUD HIS NAME THE CHARGED
FIGHT HAS OPENED OLD WOUNDS AND INFLICTED NEW ONES IN A BITTER EPISODE THAT
BEGAN UNFOLDING LAST SUMMER BEHIND THE DOORS OF A STUFFY HEARING ROOM IN THE
BOWELS OF THE TRANSPORTATION DEPARTMENT'S QUARTERS NEAR CAPITOL HILL

MR LORENZO OF COURSE MADE HIS NAME AS THE STEELY UNIONBUSTING CHIEF OF
THE NOWDEFUNCT TEXAS AIR CORP PARENT OF CONTINENTAL AND EASTERN AIRLINES
HE HAS TWICE TAKEN AIRLINES INTO BANKRUPTCY AND HIS UNYIELDING DEMANDS FOR
LABOR CONCESSIONS PROMPTED A BRUISING 1989 STRIKE AT EASTERN THAT PROVED
FATAL TO THE AIRLINE HE SHOWS NO SIGNS OF BACKING DOWN IN THIS LATEST
FACEOFF EITHER WE'RE EXACTLY THE KIND OF PEOPLE THE TRANSPORTATION
DEPARTMENT SHOULD BE ATTRACTING CONTENDS THE SLIM ANGULAR 53YEAROLD
EXECUTIVE I'VE BECOME THE UNIONS' WHIPPING BOY

AIRLINE UNIONS THOUGHT THEY WERE RID OF MR LORENZO IN AUGUST 1990 WHEN HE
STEPPED DOWN FROM CONTINENTAL HOLDINGS THE SUCCESSOR COMPANY TO TEXAS AIR
AND SOLD HIS SHARES TO SCANDINAVIAN AIRLINES SYSTEM INC FOR MORE THAN 20
MILLION AS PART OF THE DEAL HE AGREED TO STAY OUT OF THE AIRLINE BUSINESS
FOR SEVEN YEARS HE SET UP HOUSTONBASED SAVOY CAPITAL INC A
VENTURECAPITAL FIRM AND ANNOUNCED PLANS TO INVEST IN STARTUP FIRMS IN
OTHER FIELDS

BUT MR LORENZO JUST COULDN'T STAY AWAY IN JANUARY 1993 HE PAID 5 MILLION
TO SETTLE WITH CONTINENTAL CREDITORS WHO CLAIMED HE HAD SOLD HIS SHARES TO
SAS AT TOO HIGH A PRICE AS PART OF THE SETTLEMENT THE NONCOMPETE CLAUSE
WAS SCRAPPED

BY LATE 1992 MR LORENZO HAD HIRED THREE FORMER CONTINENTAL EXECUTIVES WHO
DID RESEARCH SHOWING A NICHE FOR A CUTRATE AIRLINE ON THE EAST COAST AT
THE START OF 1993 JUST BEFORE THE NONCOMPETE CLAUSE WAS KILLED HE BROUGHT
IN STEPHEN J KOLSKI FORMER PRESIDENT OF CONTINENTAL'S COMMUTER CARRIER

TO OFFICIALLY OPEN UP SHOP AS AN AIRLINE AGAIN MR LORENZO HAD TO PASS
MUSTER WITH THE TRANSPORTATION DEPARTMENT WHICH JUDGES THE FITNESS OF
ANYONE WHO WANTS TO START A CARRIER IN A BID TO SMOOTH THE WAY AND APPEASE
POTENTIAL CRITICS MR KOLSKI IMMEDIATELY EMBARKED ON A DAMAGECONTROL
MISSION BY SEEKING OUT MR LORENZO'S TOUGHEST FOES THE UNIONS REPRESENTING
AIRLINE PILOTS AND MECHANICS MR LORENZO'S FRONT MAN COULD GET THROUGH
DOORS MR LORENZO HIMSELF WOULD HAVE HAD SLAMMED IN HIS FACE

A BALDING BEARISH MAN WHO LOOKS LIKE THE NOTRE DAME FOOTBALL PLAYER HE ONCE
WAS MR KOLSKI FIRST ARRANGED A MEETING WITH RANDOLPH BABBITT THE
PRESIDENT OF THE POWERFUL AIR LINE PILOTS ASSOCIATION THE TWO MEN HADN'T
MET BEFORE BUT THEY KNEW OF EACH OTHER MR KOLSKI HAD BEEN A VICE
PRESIDENT OF EASTERN IN THE 1980S UNDER MR LORENZO WHEN MR BABBITT WAS A
CAPTAIN FLYING A300 JETLINERS THERE

ON A FRIGID TUESDAY LAST FEBRUARY THE TWO MEN CHATTED AMICABLY IN THE UNION
PRESIDENT'S OFFICE FILLED WITH MODELS OF UNIONREPRESENTED CARRIERS
INCLUDING TWO FROM EASTERN SITTING IN FRONT OF A WALL ADORNED WITH FRAMED
NOWWORTHLESS EASTERN STOCK CERTIFICATES MR KOLSKI DESCRIBED THE CONCEPT
OF FRIENDSHIP AIRLINES WHICH WOULD FLY TWO DAILY ROUND TRIPS FROM BALTIMORE
TO ATLANTA AND TO BOSTON HE NEEDED PILOTS HE SAID BUT THERE WAS SOMETHING
THE UNION MIGHT WANT TO KNOW FRIENDSHIP'S BIGGEST SHAREHOLDER WAS FRANK
LORENZO

MR LORENZO DIDN'T WANT TO BE AT ODDS WITH THE UNION ANY MORE MR KOLSKI
SAID COULDN'T IT FORGIVE AND FORGET

WHAT HAPPENED NEXT SOURED ANY PROSPECT OF THE TWO SIDES RECONCILING 
THOUGH THE SIDES OFFER VERY DIFFERENT VERSIONS OF WHAT TRANSPIRED ACCORDING
TO MR BABBITT THE UNION HAD NOTHING AGAINST MR KOLSKI BUT MR LORENZO
WAS ANOTHER MATTER YOU'RE ENTERING THIS WITH AN ALBATROSS YOU'VE TIED
AROUND YOUR OWN NECK MR BABBITT SAYS HE TOLD MR KOLSKI WHY

BUT AS MR KOLSKI TELLS IT MR BABBITT NEVER SAID THE UNION WOULD OPPOSE A
LORENZO AIRLINE HE CLAIMS MR BABBITT INSTEAD URGED HIM TO HIDE MR
LORENZO'S OWNERSHIP A FEDERAL CRIME HE SAYS MR BABBITT THEN OFFERED HIM A
LIST OF OUTOFWORK PILOTS

IN ANY CASE A DAY LATER THE PILOTS UNION DECLARED ITS OPPOSITION TO MR
LORENZO'S REENTRY INTO THE AIRLINE INDUSTRY EVEN THOUGH MR LORENZO
HADN'T YET ANNOUNCED HIS PLANS HIMSELF THE UNION'S PRESS RELEASE MINCED NO
WORDS HE IS THE VERY EMBODIMENT OF EVIL

MR KOLSKI PRESSED ON TRYING TO SET UP A MEETING WITH THE INTERNATIONAL
ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS WHICH REPRESENTS MECHANICS
AND BAGGAGE HANDLERS HE WAS REBUFFED

AT THE SAME TIME MESSRS LORENZO AND KOLSKI BEGAN COURTING STATE
POLITICIANS THEY TALKED WITH MARYLAND ECONOMICDEVELOPMENT OFFICIALS ABOUT
GETTING TAX INCENTIVES THEY DINED WITH GOV DONALD SCHAEFER JUST BEFORE
VALENTINE'S DAY THE GOVERNOR WAS AMENABLE MR KOLSKI SAYS WE NEED THE
BUSINESS WE WANT THE BUSINESS WE WANT TO BE HELPFUL MR KOLSKI SAYS A
STATE ECONOMICDEVELOPMENT OFFICIAL TOLD HIM

BUT A MARYLAND STATE LEGISLATOR WHO ALSO HAPPENED TO BE AN OFFICER OF THE
MACHINISTS UNION LEARNED OF THE TALKS THE WELLORGANIZED UNION URGED ITS
MARYLAND MEMBERS TO BEGIN A LETTERWRITING CAMPAIGN TO STATE LEGISLATORS 
AND THE LEGISLATORS ULTIMATELY PASSED A RESOLUTION OPPOSING USE OF STATE
FUNDS FOR FRIENDSHIP

SIMILAR LOBBYING TOOK PLACE ON CAPITOL HILL BY THE TIME FRIENDSHIP APPLIED
TO THE TRANSPORTATION DEPARTMENT FOR AN OPERATING CERTIFICATE 57 HOUSE
MEMBERS HAD WRITTEN TO SECRETARY FEDERICO PENA URGING HIM TO REJECT IT
SPURRED BY THIS FLURRY OF ANTAGONISM AND WITH THE BENEFIT OF HINDSIGHT THE
DEPARTMENT TOOK THE UNUSUAL STEP OF ORDERING A FORMAL INVESTIGATION INTO
FRIENDSHIP A PUBLIC HEARING BEFORE AN ADMINISTRATIVE LAW JUDGE WAS SET FOR
JUNE

MR LORENZO SAID HE WELCOMED THE HEARING BUT IRE AGAINST HIS UNION FOES
SURFACED AT AN APRIL LUNCHEON OF THE AERO CLUB IN WASHINGTON AT WHICH
SECRETARY PENA WAS TO MAKE HIS FIRST SPEECH TO THE AIRLINE INDUSTRY AS A
LATEARRIVING MR LORENZO WALKED BY THE PILOTS UNION'S TABLE IN A CROWDED
HOTEL BALLROOM HE PAUSED AND STUCK HIS NOSE IN THE AIR I THOUGHT I
SMELLED SOMETHING HE SAID IN A VOICE LOUD ENOUGH FOR MR BABBITT AND
OTHER UNION OFFICIALS TO HEAR MR LORENZO SAYS HE WAS JOKING

IN HIS YEARS BATTLING LABOR IN THE 1980S MR LORENZO HAD PAID BIG MONEY FOR
LAWYERS AND LOBBYISTS TO KEEP HIS AIRLINES FLYING BUT THIS TIME HE HADN'T
BOTHERED HE DIDN'T THINK HE NEEDED THE HELP A BUSH ADMINISTRATION
APPOINTEE HAD TOLD HIM HIS VENTURE WAS SUCH A SURE THING IT PROBABLY DIDN'T
EVEN NEED A LAWYER MR LORENZO SAYS

HIS UNION FOES HAD OTHER IDEAS THE PILOTS AND MACHINISTS REASSEMBLED THE
TEAM OF LAWYERS AND CONSULTANTS THAT HAD OPPOSED MR LORENZO IN THE 1980S
SOME HAD WORKED TOGETHER FOR MORE THAN A DECADE AND KNEW EACH OTHER SO WELL
THAT THEY DIDN'T NEED MANY PLANNING SESSIONS IT'S ALMOST LIKE SHORTHAND
SAYS JOHN SULLIVAN A PARTNER WITH THE LAW FIRM OF GUERRIERI EDMOND &
JAMES WHICH REPRESENTS THE MACHINISTS UNION

IN ONE STRATEGY SESSION A UNION OFFICIAL SUGGESTED A PERSONAL ATTACK THE
UNION HAD LEARNED OF A DRUNKENDRIVING ARREST OF MR LORENZO IN AUGUST 1992
IN HOUSTON IN WHICH HE FAILED AN AGILITY TEST AND WAS BROUGHT IN TO THE
POLICE STATION MR LORENZO PLEADED NO CONTEST AND WAS GIVEN TWO YEARS OF
PROBATION ONE PILOTSUNION OFFICIAL ARGUED THAT SINCE PILOTS CONVICTED OF
DRUNKEN DRIVING CAN LOSE THEIR FLYING LICENSES MR LORENZO SHOULD BE HELD
TO THE SAME STANDARD BUT EVERYONE ELSE RESISTED THERE WERE ENOUGH REASONS
TO OPPOSE HIM ON BUSINESS REASONS NOT TO BRING HIS PERSONAL LIFE INTO IT
MR BABBITT SAYS

OVER AT THE LORENZO CAMP MEANWHILE PROBLEMS WERE CROPPING UP AT EVERY
TURN IN MAY MR LORENZO WAS FORCED TO DROP THE FRIENDSHIP AIRLINES NAME
BECAUSE UNITED OWNED THE RIGHTS TO IT HE ALSO DROPPED THE EASYGOING
REGULATORY ATTORNEY HE HAD RETAINED WHEN HE THOUGHT HIS COMPANY WOULD BE A
SHOOIN REPLACING HIM WITH FEISTY ROBERT BECKMAN OF BECKMAN KIRSTEIN &
MURPHY IN WASHINGTON

MR BECKMAN PEPPERED THE TRANSPORTATION DEPARTMENT WITH EXTRA FILINGS HE
OPPOSED WHAT HE VIEWED AS ONEROUS DOCUMENT REQUESTS HE OBJECTED TO AN ORDER
THAT MR LORENZO PRODUCE COPIES OF EVERY LAWSUIT FILED AGAINST HIM A
REQUIREMENT INVOLVING HUNDREDS OF THOUSANDS OF PAGES AND SO MANY LAWSUITS
THAT THE LORENZO CAMP CAN'T EVEN PROVIDE AN EXACT NUMBER THE ADMINISTRATIVE
LAW JUDGE ULTIMATELY WOULD FIND THAT ATX'S FAILURE TO HAND OVER THE
DOCUMENTS PROMPTLY SHOWED THE COMPANY WASN'T INCLINED TO COMPLY WITH FEDERAL
REQUIREMENTS

THE FIRST DAYS OF THE HEARINGS TOOK PLACE IN LATE JUNE DURING WASHINGTON'S
STIFLING SUMMER AND THE DRAB HEARING ROOM WASN'T WELL AIRCONDITIONED WITH
SEATS FOR ONLY A FEW DOZEN SPECTATORS IT WAS PACKED MR LORENZO GOT OFF TO
A BAD START HE SHED HIS SUIT JACKET AND DRAPED IT OVER THE BACK OF THE
WITNESS CHAIR TO THE ASTONISHMENT OF THE BUTTONEDUP COURTROOM CROWD JUDGE
ROBERT L BARTON TOLD HIM TO PUT THE JACKET BACK ON AND MR LORENZO
SHEEPISHLY COMPLIED

THE REST OF THE HEARING DIDN'T GO MUCH BETTER FOR MR LORENZO THE PILOTS
UNION COLLECTED A LONG LIST OF MAINTENANCE VIOLATIONS AT EASTERN WHEN MR
LORENZO CONTROLLED THE CARRIER AND DESCRIBED LABOR AGREEMENTS HE HAD
REFUSED TO SIGN THE MACHINISTS UNION PERSUADED FORMER CONTINENTAL CHIEF
EXECUTIVE D JOSEPH CORR TO TESTIFY

AS ONE OF NINE CONTINENTAL PRESIDENTS IN AS MANY YEARS MR CORR DESCRIBED
MR LORENZO'S DAYTODAY MANAGEMENT STYLE AS DISHONEST INATTENTIVE TO
MATTERS OF SAFETY DISRUPTIVE AND GENERALLY UNQUALIFIED HE CALLED HIS
FORMER BOSS A SINGLE BAGGER WHEN IT CAME TO SAFETY SOME GROCERY STORES
WHEN YOU GO IN TO GET YOUR GROCERIES THEY GIVE YOU JUST A SINGLE BAG OTHER
GROCERY STORES THAT YOU GO TO THEY GIVE YOU A DOUBLE BAG MR LORENZO HE
TESTIFIED BELONGED TO THE FORMER CATEGORY

MR LORENZO SAYS HE FIRED MR CORR IN 1989 FOR INCOMPETENCE AND CONTENDS
THE FORMER EXECUTIVE LIED TO INGRATIATE HIMSELF WITH UNIONS WHICH ARE
LOOKING FOR CHIEF EXECUTIVES AT AIRLINES IN WHICH THEY HOLD STAKES HE'S A
DISGRUNTLED EMPLOYEE MR LORENZO SAYS

ALL THIS TESTIMONY FELL ON WILLING EARSTHOSE OF FEDERAL REGULATORS WHO HAD
HAD THEIR FIRST RUNINS WITH MR LORENZO DURING THE 1980S TRANSPORTATION
DEPARTMENT ANALYSTS SIFTED THROUGH 90 BOXES OF OLD DOCUMENTS DATING BACK TO
MR LORENZO'S DAYS CONTROLLING EASTERN CONTINENTAL AND CONTINENTAL EXPRESS
TO MR PODBERESKY OF THE TRANSPORTATION DEPARTMENT'S PUBLIC COUNSEL OFFICE
THE NEW EVIDENCE SHOWED MR LORENZO COULDN'T CLAIM AS HE HAD DURING THE
HEARINGS THAT HE WASN'T INVOLVED IN DAYTODAY OPERATIONS AT HIS OLD
AIRLINES WHEN PROBLEMS AROSE

HE WAS INVOLVED FROM DAY ONE TO THE LAST DAY THE TRANSPORTATION
DEPARTMENT LAWYER SAYS HE DIDN'T FIX IT FROM OUR VANTAGE POINT SOMEONE'S
GOT TO BE HELD ACCOUNTABLE

MR LORENZO CAN'T APPEAL THE TRANSPORTATION DEPARTMENT RULING UNTIL
SECRETARY PENA ISSUES A FINAL DECISION BUT HE HAS ALREADY ASSEMBLED THE
LEGAL TEAM TO DO JUST THAT AND SAYS HE WILL TAKE HIS CASE TO THE FEDERAL
APPEALS COURT IN WASHINGTON IF THE RULING COMES DOWN AGAINST HIM HE HAS
ALSO RETAINED A WELLCONNECTED PUBLICRELATIONS FIRM DILENSCHNEIDER & CO
WHOSE CHAIRMAN ROBERT DILENSCHNEIDER WAS CHIEF EXECUTIVE OF POWERHOUSE
FIRM HILL & KNOWLTON UNDER HIS TENURE THERE THAT FIRM TOOK ON
CONTROVERSIAL CLIENTS SUCH AS THE US CONFERENCE OF CATHOLIC BISHOPS IN ITS
ANTIABORTION CAMPAIGN AND BANK OF CREDIT & COMMERCE INTERNATIONAL IN THE
MIDST OF ITS FINANCIAL SCANDAL

LOOKING BACK NOW MESSRS LORENZO AND KOLSKI CONTEND THE TRANSPORTATION
DEPARTMENT WAS OPPOSED TO THEIR APPLICATION FROM THE START AND WAS LOOKING
FOR REASONS TO REJECT IT WHO REPRESENTED THE PUBLIC IN ALL THIS ASKS MR
KOLSKI FLYERS SEEKING CHEAP FARES IN THE NORTHEAST HE ADDS AREN'T LIKELY
TO GET THEM

BUT THE BALTIMORE MARKET ATX PLANNED TO SERVE HAS BECOME THE EAST COAST'S
LOWFARE MECCA SOUTHWEST AIRLINES ADDED BALTIMORE TO ITS ROUTE STRUCTURE IN
SEPTEMBER SETTING OFF A PRICE WAR AMONG CARRIERS INCLUDING USAIR AND
CONTINENTAL AIRLINES

MR LORENZO BATTLING FOR SO LONG TO START UP HIS AIRLINE IN BALTIMORE MAY
HAVE MISSED HIS OPPORTUNITY MARYLAND AVIATION ADMINISTRATOR TED MATHIESON
SAYS HE HASN'T HEARD FROM MR LORENZO'S GROUP SINCE LAST JUNE NOW HE SAYS
HE HEARS RUMORS THAT ATX MIGHT BE LOOKING TO BASE ITS OPERATIONS IN
PHILADELPHIA INSTEAD MR LORENZO THROUGH A SPOKESMAN CONFIRMS THAT HE IS
INTERESTED IN PHILADELPHIA AS WELL AS IN BOSTON AND NEW YORK

SAYS MR MATHIESON THE PICTURE HAS CHANGED A LOT FROM WHERE WE WERE A YEAR
AGO

DANIEL PEARL CONTRIBUTED TO THIS ARTICLE 9401250016 940125 ENTERPRISE 
US DECIDES TO PULL BACK FROM TALKS AIMED AT HARMONIZING PATENT SYSTEM 
 BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL

IN A MOVE THAT ELATED INDEPENDENT INVENTORS THE COMMERCE DEPARTMENT SAID
THE US IS PULLING BACK FROM INTERNATIONAL NEGOTIATIONS AIMED AT BRINGING
THE WORLD'S PATENT LAWS INTO HARMONY

THE NEGOTIATIONS WHICH BEGAN NEARLY A DECADE AGO WERE AIMED AT MOVING THE
US FROM ITS CURRENT FIRSTTOINVENT SYSTEM TO THE FIRSTTOFILE METHOD
USED BY MOST OTHER COUNTRIES UNDER FIRSTTOINVENT PATENTS ARE AWARDED TO
THE PERSON WHO FIRST INVENTS A PRODUCT RATHER THAN TO THE INVENTOR WHO FIRST
FILES FOR PATENT PROTECTION MANY INDEPENDENT INVENTORS FEARED THAT SUCH A
SWITCH WOULD PUT THEM AT A DISADVANTAGE TO BIG CORPORATIONS THAT HAVE THE
FINANCIAL RESOURCES TO FILE COUNTLESS PATENT APPLICATIONS THIS IN TURN
WOULD HINDER INNOVATION AND THREATEN A 200YEAROLD US TRADITION OF PATENT
PROTECTION INVENTORS SAY THE US ADOPTED THE FIRSTTOINVENT SYSTEM
DURING GEORGE WASHINGTON'S PRESIDENCY

BUT YESTERDAY COMMERCE SECRETARY RONALD BROWN SAID THAT THE US WOULD NOT
SEEK TO RESUME NEGOTIATIONS OF A TREATY HARMONIZING THE WORLD'S PATENT LAWS
AT THIS TIME

MR BROWN HELD OUT THE POSSIBILITY THAT THE US WOULD RESUME THE TALKS AT A
LATER DATE WE WILL MAINTAIN THE FIRSTTOINVENT SYSTEM WHILE KEEPING OPEN
THE OPTION OF FULL PATENT HARMONIZATION HE SAID

HERBERT WAMSLEY EXECUTIVE DIRECTOR OF INTELLECTUAL PROPERTY OWNERS INC A
TRADE ASSOCIATION IN WASHINGTON DC INTERPRETED YESTERDAY'S DECISION AS A
CLARIFICATION TO US TRADING PARTNERS THAT THEY WOULD HAVE TO MAKE
CONCESSIONS TO THE US ON A VARIETY OF DEMANDS HE CONTENDED THAT
FIRSTTOFILE WILL INEVITABLY BE ADOPTED

BUT RAYMOND DAMADIAN PRESIDENT OF FONAR CORP IN MELVILLE NY AND THE
INVENTOR OF MAGNETICRESONANCE IMAGING SAID THE ANNOUNCEMENT WAS
ABSOLUTELY CRITICAL IN PRESERVING THE NATION'S ENTREPRENEURIAL ECONOMY

THE FUNDAMENTAL THING IS THAT THIS COUNTRY'S WEALTH WAS GENERATED BY SMALL
INVENTORS WHO WERE ABLE TO USE THEIR PATENTS TO BUILD BIG COMPANIES AT&T
INTERNATIONAL HARVESTER IBM THE LIST IS ENDLESS DR DAMADIAN SAID

HE SAID BIG US AND FOREIGN CORPORATIONS NOTABLY THOSE IN JAPAN AND
GERMANY HAD EXERTED TREMENDOUS PRESSURE ON THE US TO MAKE THE CHANGE
IF THE US HAD ACQUIESCED HE SAID THOSE CORPORATIONS COULD HAVE FLOODED
THE US PATENT OFFICE WITH ENDLESS FILINGS ESSENTIALLY DESTROYING GARAGE
TINKERERS WHO HAVE BIG IDEAS BUT LITTLE MONEY 9401250015 940125 BUSINESS
BRIEF STAPLES INC DEFINITIVE ACCORD IS SIGNED TO BUY NEW JERSEY
CONCERN

STAPLES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE NATIONAL
OFFICE SUPPLY CO A NATIONWIDE CONTRACT OFFICE SUPPLY DEALER BASED IN SOUTH
HACKENSACK NJ IN A STOCK SWAP

STAPLES A FRAMINGHAM MASS DISCOUNT OFFICE SUPPLY COMPANY SAID THE DEAL
WAS VALUED AT ABOUT 100 MILLION WITH ABOUT 84 MILLION IN EQUITY AND AN
ASSUMPTION OF 15 MILLION IN DEBT DURING THE PAST FIVE YEARS NATIONAL'S
INTERNALLY GENERATED ANNUAL REVENUE GROWTH HAS BEEN ABOUT 20 WITH REVENUE
IN ITS CURRENT FISCAL YEAR EXPECTED TO BE 150 MILLION STAPLES SAID

NATIONAL'S SHAREHOLDERS WILL RECEIVE STAPLES COMMON STOCK AND THE
TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS STAPLES EXPECTS
THE ACQUISITION TO BE COMPLETED BY THE END OF MARCH

STAPLES ALSO SAID IT WILL ACQUIRE THE 58 OF ITS CANADIAN JOINT VENTURE
BUSINESS DEPOT THAT IT DOESN'T ALREADY OWN THE PURCHASE FOR ABOUT 32
MILLION WILL TAKE PLACE AS EARLY AS MID1994 STAPLES SAID 9401250014
940125 BUSINESS BRIEF BECKMAN INSTRUMENTS INC PRETAX CHARGE TO BE
TAKEN LOSS POSTED FOR 4TH QUARTER

BECKMAN INSTRUMENTS INC SAID IT WILL TAKE A 135 MILLION PRETAX CHARGE
AGAINST EARNINGS TO BE SPREAD OVER 1993 AND 1994 TO COVER THE COST OF A
MAJOR REORGANIZATION

THE FULLERTON CALIF SUPPLIER OF PRODUCTS USED FOR BIOLOGICAL ANALYSIS IN
LABORATORIES REPORTED A LOSS OF 67 MILLION OR 241 A SHARE FOR THE
FOURTH QUARTER OF 1993 COMPARED WITH EARNINGS OF 124 MILLION OR 44 CENTS
A SHARE IN THE YEAREARLIER QUARTER THE AFTERTAX CHARGE IN THE FOURTH
QUARTER IS 723 MILLION OR 261 A SHARE SALES FOR THE RECENT QUARTER
WERE 2366 MILLION A DECREASE OF 54 FROM 2502 MILLION A YEAR EARLIER

THE COMPANY HAD SAID IN OCTOBER THAT IT WOULD TAKE A CHARGE FOR JOB
ELIMINATIONS AND REORGANIZATION TO CUT COSTS BUT IT HAD NOT STATED THE
AMOUNT OF THE CHARGE OF THE TOTAL PRETAX CHARGE 115 MILLION WILL BE TAKEN
IN 1993 AND 20 MILLION IN 1994 AS THE COMPANY ELIMINATES AT LEAST 800 JOBS

BECKMAN'S STOCK CLOSED AT 28 A SHARE UP 125 CENTS IN COMPOSITE NEW YORK
STOCK EXCHANGE TRADING 9401250013 940125 BUSINESS WORLD AN IMAGINATIVE
GAZE AT UNGLUED LA  BY TIM W FERGUSON

ONE OF HIS CHIMNEYS FELL THROUGH THE ROOF AND SMASHED HIS LIBRARY BUT
AUTHOR RAY BRADBURY WAS PUTTING A POSITIVE FACE ON THE LOS ANGELES
EARTHQUAKE IT'S ALREADY IMPROVED OUR LIVES WE'RE THROWING OUT A LOT OF
BOOKS THAT WE'VE BEEN KEEPING FOR 30 YEARS

LEST ANY READER OF FAHRENHEIT 451 THINK THAT ONE OF LA'S PREMIER
BIBLIOPHILES HAD TORN A BINDING OF HIS OWN IN THE TREMOR THE 73YEAROLD
MR BRADBURY EXPLAINS THAT THE DISCARDED VOLUMES WENT TO OTHERS AND NOT TO
SCRAP

HIS TYPEWRITER ALSO WAS A TEMPORARY CASUALTY BUT THE SCIENCEFICTION AND
SCREENWRITER WAS SPARED THE WORST OF IT LAST WEEK IN THE TIDIED UP PARLOR
OF HIS HOME IN THE CHEVIOT HILLS NEIGHBORHOOD BETWEEN THE FOX AND FORMER MGM
STUDIOS ON THE CITY'S WEST SIDE HE WAS TOUTING THE FRONTIER FEELINGS THAT
ARISE WHEN A LOT OF PEOPLE ARE CLEANING OUT THEIR LIVES

I VISITED MR BRADBURY AFTER THE QUAKE BECAUSE OF HIS AUTUMNAL EMERGENCE AS
A MUSE ON URBAN LIFE AND IN PARTICULAR ON THE COURSE OF THE CITY WHERE HE'S
LIVED FOR NEARLY 60 YEARS HIS ESSAYS AND TALKS HAVE INFLUENCED PLANNERS AND
DEVELOPERS IN LA AND ELSEWHERE

WITH THE LOCAL CANVAS NOW PARTLY CLEARED WHAT MIGHT WE SEE WE'LL GO BACK
TO BEING FOOLS HE SAYS REFERRING TO THE AUTOMOBILE WHICH THIS LA
ODDITY HAS NEVER LEARNED TO OPERATE MOST EVERYONE ELSE IS UPSET ABOUT
SUNDERED FREEWAYS I WAS HOPING THEY'D ALL BE DESTROYED THIS WEEK WITHOUT
HURTING ANYONE HE ADMITS FREEWAYS ARE FULL OF UNNECESSARY DRIVERS I
DESCRIBE THEM AS AN ATTRACTIVE NUISANCE MOST PEOPLE THAT ARE ON THEM AT ANY
ONE HOUR SHOULDN'T BE THERE

PART VISIONARY PART CURMUDGEON MR BRADBURY IS A MAN OF GRAND OPINIONS
JUST WHAT YOU MIGHT EXPECT IN A STORYTELLER AND A NICE BREAK FROM THE USUAL
RUN OF LA'S BUSILY TALKING HEADS

I ANTICIPATED THE SALLY AGAINST THE CAR CULTURE MR BRADBURY HAS CAMPAIGNED
FOR RAPID TRANSIT FOR 30 YEARS OF COURSE NOW THAT A SUBWAY IS FINALLY
BEING BUILT IN LOS ANGELES HE THINKS THEY GOT IT ALL WRONG WITH A ROUTE
THAT SNAKES ALONG DENSE BUT DULL CORRIDORS MONORAILS LINKING ACTIVITY
CENTERS ARE WHAT HE WANTS

MR BRADBURY INSISTS THAT ANGELENOS WERE FORCED INTO THEIR AFFAIR WITH THE
AUTO BY A DENIAL OF CHEAP TRANSIT OPTIONS YET HE ACKNOWLEDGES THE SUBURBAN
URGE WHICH THE CAR HAS ENCOURAGED HIS DAUGHTER AND HER FAMILY MOVED ACROSS
THE VENTURA COUNTY LINE SEVERAL YEARS AGO IT'LL BE EASY TO GET IN TO THE
CITY45 MINUTES SOMEONE TOLD HIM BUT AS OTHERS GET THE SAME IDEA TREKS
ARE PROLONGED AND IN SUCH SITUATIONS LIFE'S RHYTHMS CHANGE AND MARRIAGES MAY
SUFFER

FORTUNATELY A DYNAMIC ECONOMY ADAPTS AS WELL JOBS FOLLOW THE PEOPLE OR
TECHNOLOGY MAKES IT POSSIBLE TO WORK FROM WHERE YOU ARE BUT MR BRADBURY'S
HEART IS IN THE CITY IN KEEPING IT BUSTLING AND LIVABLE HE PRAISES THE
EUROPEAN CAPITALS ESPECIALLY PARIS WHERE HE AND HIS WIFE NOW SPEND A
COUPLE OF MONTHS A YEAR HE SAYS HE'LL WALK 10 MILES A NIGHT ALONG ITS
CAFELINED STREETS THAT IS THE ATMOSPHERE HE WANTS TO IMPLANT ALL OVER THE
LOS ANGELES BASIN

HIS BASIC SCHEME IS TO BRING DOZENS OF EATERIES SEVERAL CINEMAS AND A FEW
BOOKSTORES TOGETHER IN ONE FELL SWOOP TO CREATE GATHER AND STARE PLACES
 PREFERABLY OPENAIR FOR WHICH THE SOUTHERN CALIFORNIA CLIMATE IS IDEAL
CROWDS CREATE SOCIABILITY AND ENFORCE ETIQUETTE AS LONG AS CRIMINALS ARE
KEPT AT BAY HE SAYS

THE IDEA WOULD BE TO HAVE SUCH SPOTS IN EACH OF THE LA AREA'S 80
MICROPOLISES MR BRADBURY HAS WRITTEN SO THAT THE LOCALS WHO'VE BEEN
DRIVEN AWAY BY UNIMAGINATIVE DOWNTOWNS WILL ENJOY GETTING LOST IN THEIR
OWN ENVIRONS HE HOPES THAT CORPORATIONS WORKING WITH ENTREPRENEURS WILL
BRING SUCH PROJECTS INTO BEING HE HAS LITTLE FAITH IN GOVERNMENTS OR
CHAMBERS OF COMMERCE TO DO SO

HE REMEMBERS HIS YOUTH IN THENVIBRANT HOLLYWOOD WHEN THE STREET SCENE
ALLOWED A DEPRESSIONPOOR BOY TO ENCOUNTER HIS DREAMS BUT MR BRADBURY HAS
NO SUCH NOSTALGIA FOR 1960S SOUTHERN CALIFORNIA WHICH SOME PEOPLE REGARD AS
ITS GOLDEN AGE ITS UNINSPIRED COMMERCIAL STRIPS AND LACK OF CENTER STARTED
HIM ON HIS SECOND CAREER AS A MASTER OF THE OBVIOUS

HIS OBVIOUS NOTIONS HAVE TAKEN ROOT IN SEVERAL LAAREA LOCATIONS IN
RECENT YEARS SOMETIMES IN THE WORK OF ARCHITECT JON JERDE WHO'S WRITTEN
THAT MR BRADBURY UNDERSTANDS THE ESSENTIAL SPIRIT AND PARTS OF THE CITY AS
NO OTHER MR JERDE'S PROJECTS HAVE BEEN MORE IN THE VEIN OF SHOPPING MALLS
THAN TRADITIONAL CITY BLOCKS BUT MR BRADBURY SAYS THIS MAY BE NECESSARY
WHERE PUBLIC AUTHORITIES HAVE LOST CONTROL

YOU HAVE TO BUILD A MEDIEVAL CITY OBSERVES THE AUTHOR THE WESTSIDE
PAVILION A REVIVED COMPLEX NEAR HIS HOME IS RUN BY A WHOLE NEW SET OF
LORDS IN THEIR CASTLE AND THE EVIL PEASANTS ARE OUTSIDE SOMEWHERE AND YOU
LET THE GOOD PEASANTS IN IT'S A SUBSTITUTE FOR A REAL CITY

THE EARTHQUAKE ITSELF MAY NOT HAVE BROKEN MUCH GROUND FOR MORE OF THE
BRADBURY TOUCH ALTHOUGH PEDESTRIAN PATHS WITH LIGHTS AND CARTS ARE NOT
THE WORST IDEA FOR SEISMICALLY SENSITIVE TURF BUT THE DESPAIR THAT SEEMS
TO GRIP SO MANY IN TOWN MAY DO THE TRICK ONE POSITIVE OMEN IS THE
INCREASING CONNECTION BETWEEN THE ENTERTAINMENT INDUSTRY WITH ITS
THEMEPARK VENTURES AND THE RETAIL WORLD

MR BRADBURY WAS AN EARLY ENTHUSIAST OF THE DISNEY MODEL DISNEYLAND IS A
CIVILIZATION AND IT'S IMPROVED THE WORLD HE SAYS I KNEW WALT AND I
DEFENDED HIM AGAINST THE SNOBS IN NEW YORK AND EVER SINCE THE MAYORS OF
THE WORLD HAVE COME INTO DISNEYLAND TO LEARN HOW TO RECREATE THEIR CITIES

CLEANLINESS QUALITY AND FUN AND NEVER MIND A LITTLE ERSATZ MR BRADBURY
LIKES THE SOUTH STREET SEAPORT IN NEW YORK HE SAYS HE WON'T GO ANYWHERE
ELSE TO EAT IN THE APPLE HE SHOWS NO DEFERENCE TO URBAN DERELICTS YOU GET
THREE DOZEN HOMELESS AND A THOUSAND PEOPLE ARE KEPT OUT HE'S ALSO ON A
KICK AGAINST GRAFFITI PROPOSING IN A LETTER TO THE LOS ANGELES TIMES A
COORDINATED CITIZEN PAINTOVER OF VANDALIZED WALLS SOMETHING HE SAYS HE'S
TRIED HIMSELF

AND HE WANTS ILLEGAL ALIENS OUT IMMIGRATION AT CURRENT LEVELS SAYS THIS
SON OF A SWEDE IS GOING TO DESTROY CALIFORNIA THE MILLIONS NOW HERE
LEGALLY MUST BE TAUGHT ENGLISH SO WHO'S GOING TO BUS TABLES AT THE SCORES
OF NEW CAFES ALONG THE RUE DE BRADBURY

I ASK HIM AGAIN IF THE QUAKE WILL BE ENOUGH TO JAR LA ONTO A NEW PATH IT
WILL TAKE AN ATOM BOMB HE RESPONDS BUT SERIOUSLY HE THINKS HE'S GAINING
SOME LISTENERS INCLUDING THE NEW MAYOR RICHARD RIORDAN

RIGHT NOW THE BEST TONIC MIGHT BE HUMOR HE RECALLS A STORY APOCRYPHAL IT
TURNS OUT ABOUT POLITICAL IDOL AND LABORN ADLAI STEVENSON WHOSE
ILLINOIS FARMHOUSE BURNED IN 1938 STEVENSON BY THIS VERSION GATHERED HIS
CLAN ABOUT THE RUINS AND SAID OK GO GET THE MARSHMALLOWS 9401250012
940125 PEPPERAND SALT

A MAGNIFYING GLASS 9401250011 940125 BUSINESS BRIEF SANBORN INC 
WASTEMANAGEMENT CONCERN SEEKS CHAPTER 11 PROTECTION

SANBORN INC FILED FOR CHAPTER 11 PROTECTION IN US BANKRUPTCY COURT IN
WORCESTER MASS

THE WASTEMANAGEMENT COMPANY SAID THAT EFFECTIVE WITH THE FILING LAST
FRIDAY STEPHEN GRAY OF THE RECOVERY GROUP WAS NAMED INTERIM CHIEF
EXECUTIVE THE COMPANY BASED IN WRENTHAM MASS SAID IT INTENDS TO
CONTINUE ITS OPERATIONS WHILE UNDER THE PROTECTION OF CHAPTER 11

COMPANY OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING DETAILS

IN OCTOBER THE COMPANY ANNOUNCED THE RESIGNATION OF GEORGE W SANBORN ITS
PRESIDENT AND CHIEF EXECUTIVE CITING MEDICAL REASONS THE COMPANY ALSO SAID
THAT TO ADDRESS LIQUIDITY AND CASHFLOW ISSUES IT WAS HOLDING INFORMATIONAL
DISCUSSIONS AND DUEDILIGENCE MEETINGS WITH UNIDENTIFIED THIRD PARTIES
INTERESTED IN BUYING CERTAIN ASSETS INCLUDING DIVISIONS BUSINESS UNITS AND
REAL ESTATE NO DEFINITIVE AGREEMENTS HAD BEEN REACHED IT SAID
9401250010 940125 LUNCH AND THE LAW LEGAL BATTLE HIGHLIGHTS THE
SEGREGATED WORLD OF NEW ORLEANS CLUBS  JUDGE'S MEMBERSHIP IN ONE 
HAS LOSERS OF A LAWSUIT CLAIMING TAINTED RULINGS  THE MARDI GRAS
LOOPHOLE'  BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL

IT'S NOT THAT WE DISCRIMINATE AGAINST ANY BODY OR GROUP BUT WE ARE VERY
PARTIAL TO OUR OWN

 KENNEDY J GILLY A VICE PRESIDENT OF THE BOSTON CLUB EXPLAINING IN A
1993 DEPOSITION WHY THE CLUB HAS ADMITTED NEITHER WOMEN NOR BLACKS

NEW ORLEANS HENRY MENTZ MAY HAVE TO CHOOSE BETWEEN HIS SEAT IN A PRIVATE
CLUB AND HIS SEAT ON THE FEDERAL BENCH

A LEGAL CHALLENGE THAT SEEKS TO FORCE SUCH A CHOICE PLACES THE COURTLY
SOCIABLE JUDGE AT THE CENTER OF THE LONGRUNNING CONTROVERSY OVER THE
INFLUENCE OF PRIVATE CLUBS ARE THEY MERELY HARMLESS SOCIAL AFFILIATIONS OF
LIKEMINDED INDIVIDUALS OR ARE THEY BASTIONS OF DISCRIMINATION AND POWER
USED BY THEIR MEMBERS TO FURTHER BUSINESS AND POLITICAL INTERESTS TO THE
DISADVANTAGE OF OTHERS

IMMEDIATELY AT ISSUE IS JUDGE MENTZ'S MEMBERSHIP IN THE 153YEAROLD BOSTON
CLUB AN ALLWHITE ALLMALE LUNCHEON CLUB THE BOSTON CLUB IS ONE OF FOUR
CLUBS HERE THAT THE NEW ORLEANS HUMAN RELATIONS COMMISSION WANTS TO PROBE
FOR POSSIBLE VIOLATIONS OF A CITY ANTIDISCRIMINATION ORDINANCE FOLLOWING
COMPLAINTS LAST YEAR BY A BLACK BUSINESSMAN THAT THE CLUBS HAD SNUBBED HIM

THE JUDGE'S AFFILIATION CAME TO LIGHT WHEN THE BOSTON CLUB'S SECRET
MEMBERSHIP ROSTER WAS INTRODUCED IN THE PRETRIAL PHASE OF A LAWSUIT BY THE
CLUBS CHALLENGING THE HUMAN RELATIONS COMMISSION'S AUTHORITY ALSO ON THE
LIST WHICH WAS LEAKED TO LAWYERS AROUND THE CITY WERE NUMEROUS SENIOR
PARTNERS IN TWO LAW FIRMS REPRESENTING TRAVELERS INSURANCE CO

THE DISCLOSURES PROVED ESPECIALLY UNSETTLING TO TWO NEW ORLEANS BROTHERS
JOHN AND ROBERT LILJEBERG WEALTHY COMBATIVE OWNERS OF A LOCAL PHARMACY
EMPIRE WHO HAD BEEN LOCKED IN LONG COSTLY FEDERAL LITIGATION WITH TRAVELERS
IN JUDGE MENTZ'S COURT THE LILJEBERGS SEIZED ON THE BOSTON CLUB CONNECTIONS
TO HELP EXPLAIN WHAT THEY CONSIDERED A STRING OF UNFAVORABLE AND SEEMINGLY
PUNITIVE RULINGS BY JUDGE MENTZ THAT AWARDED AN ESTIMATED 4 MILLION IN
INTEREST AND PENALTIES TO TRAVELERS AFTER A JURY FOUND THAT THE LILJEBERGS
HAD RENEGED ON LONGSTANDING LEASE OBLIGATIONS THROUGH THEIR LAWYER KENNETH
FONTE THEY PROMPTLY FILED MOTIONS IN THE CASE ASKING THAT THE JUDGMENTS BE
SET ASIDE AND THAT JUDGE MENTZ BE DISQUALIFIED FROM REHEARING THE CASE

TO TOP IT OFF THE LILJEBERGS' LAWYER MR FONTE ALSO FILED A FORMAL
COMPLAINT TO JUDGE MENTZ'S COURT SUPERIORS IN THE EASTERN DISTRICT OF
LOUISIANA HERE ALLEGING THAT THE JUDGE'S BOSTON CLUB MEMBERSHIP VIOLATES A
PROVISION OF A STRICT TWOYEAROLD FEDERAL ETHICS LAW THAT BANS JURISTS
FROM BELONGING TO CLUBS THAT PRACTICE INVIDIOUS DISCRIMINATION

JUDGE MENTZ IN RULINGS HANDED DOWN LAST MONTH DECLINED EITHER TO STEP
ASIDE OR VACATE THE RULINGS INSTEAD IN A REFLECTION OF HOW NASTY THE FIGHT
HAS BECOME HE FINED MR FONTE ABOUT 20000 ACCUSING HIM OF UNTRUTHS AND
CONTRADICTORY STATEMENTS IN HIS EFFORTS TO GET JUDGE MENTZ DISQUALIFIED
AND THE VERDICTS OVERTURNED

THE LILJEBERGS HAVE APPEALED THE RULINGS THOUGH THE BOSTON CLUB MEMBERSHIPS
ARE THE HEART OF THEIR CASE THE LILJEBERGS IN COURT PAPERS MAKE OTHER
ASSERTIONS AMONG THEM THAT JUDGE MENTZ HAD PERSONAL OR POLITICAL
RELATIONSHIPS OR CONTACT WITH OTHER LAWYERS DIRECTLY OR OBLIQUELY CONNECTED
TO TRAVELERS MR FONTE SAYS JUDGE MENTZ STUNG BY THE LILJEBERGS'
CHALLENGES NOW IS BENT ON CONDUCTING A JUDICIAL INQUISITION AGAINST HIM
AND HIS CLIENTS SAYS JOHN LILJEBERG OF JUDGE MENTZ'S CONDUCT IN THE CASE
WE ARE NOT GETTING JUSTICE HERE THE WHOLE THING STINKS

JUDGE MENTZ CITING THE ONGOING LITIGATION DECLINES COMMENT ON OTHER
PARTICULARS OF THE CASE BUT IN RULINGS DENYING THE LILJEBERGS' MOTIONS HE
REJECTS ALLEGATIONS OF IMPROPRIETY ON ANY FRONT AND HE STATES ADAMANTLY
THAT CLUB AFFILIATIONS ARE A NONISSUE IF EVERY JUDGE RECUSED HIMSELF FROM
EVERY CASE BECAUSE OF CLUB AFFILIATIONS YOU WOULD NEVER HAVE CASES HEARD
JUDGE MENTZ SAYS

IN COURT PAPERS TRAVELERS AND ITS TWO LAW FIRMS HAVE LABELED THE
LILJEBERGS' ASSERTIONS DESPICABLE AND OFFENSIVE

THE DONNYBROOK OVER PRIVATE CLUBS IS THE SECOND TO ROCK THIS HISTORIC
RAMBUNCTIOUS CITY IN THE PAST THREE YEARS A REFLECTION LARGELY OF NEW
ORLEANS'S EVEREVOLVING POLITICS IN WHICH BLACKS AND WOMEN ARE PLAYING AN
INCREASINGLY IMPORTANT ROLE THUS IT WAS IN 1991 THAT THE NEW ORLEANS CITY
COUNCIL SPURRED BY A 1988 SUPREME COURT DECISION ADOPTED THE ORDINANCE
THAT BARRED PRIVATE CLUBS INCLUDING THE CITY'S GENERATIONSOLD MARDI GRAS
PARADE CLUBS FROM EXCLUDING MEMBERS BASED ON RACE OR SEX THE LAW MODELED
ON A NEW YORK CITY LAW UPHELD BY THE US HIGH COURT APPLIES TO CLUBS WITH
MORE THAN 75 MEMBERS THAT USE PUBLIC STREETS OR FACILITIES OR THAT ALLOW
PREMISES TO BE USED FOR BUSINESS PURPOSES

THE LAW DOES CONTAIN A PROVISION THAT SOME CALL THE MARDI GRAS LOOPHOLE IT
ALLOWS PRIVATE CLUBS TO SWEAR OUT AN OATH THAT THEIR MEMBERSHIP POLICIES ARE
NONDISCRIMINATORY WITHOUT HAVING TO REVEAL WHETHER THEY HAVE SEGREGATED
MEMBERSHIPS THUS ABSENT AN ACTUAL BIAS COMPLAINT CLUBS ARE ALLOWED TO
CONDUCT BUSINESS AS USUAL WITHOUT CITY INTERFERENCE

THE PROVISION WAS A LASTMINUTE SOP TO THE INFLUENTIAL CLUBS THAT STAGE THE
PARADES WHICH ARE THE CHIEF ENTERTAINMENT DURING THE COMMERCIALLY VITAL
MARDI GRAS SEASON HERE THOUGH A FEW FORMERLY WHITE CLUBS ACCEPTED BLACK
MEMBERS IN DEFERENCE TO THE ORDINANCE MANY CLUBS HAD THREATENED TO BOYCOTT
THE PARADE SEASON IF REQUIRED TO RECAST THEIR MEMBERSHIPS

THE ISSUE IS A LITTLE MORE COMPLICATED THAN WHITE BACKLASH THE CARNIVAL
CLUBS SOME OF WHICH PREDATE THE CIVIL WAR LONG AGO SPLIT ALONG GENDER AND
RACIAL LINES AND SOME BLACK AND WOMEN'S CLUBS ALSO COMPLAINED THEY WOULD BE
ADVERSELY AFFECTED BY THE ORDINANCE AND THE LAW HAS PROVED WIDELY UNPOPULAR
AMONG WORKINGCLASS NEW ORLEANIANS OF ALL RACES WHO VIEW MARDI GRAS AS A
VAST MULTICULTURAL STREET PARTY THAT HAD BEEN LARGELY FREE OF RACIAL
POLITICS UNTIL THE CITY MOVED AGAINST THE CARNIVAL CLUBS

THE AMENDMENT DEFUSED SOME OF THE CONTROVERSY THOUGH TWO OF THE CITY'S
LARGEST CLUBS BOTH OF THEM WHITE HAVE DECLINED TO TAKE THE OATH AND NO
LONGER PARADE THEY HAVE BEEN REPLACED BY OTHER CLUBS AND THE 1994 PARADE
SEASON WHICH STARTS SUNDAY WILL HAVE A FULL COMPLEMENT OF PARADING CLUBS

ABSENT A COMPLAINT LUNCHEON CLUBS LIKE THE BOSTON CLUB WHICH DOESN'T
SPONSOR MARDI GRAS ACTIVITIES HAD ESCAPED CITY SCRUTINY UNTIL LAST YEAR
THAT'S WHEN CLARENCE HUNT A BLACK CALIFORNIA BUSINESSMAN MOVING TO NEW
ORLEANS WROTE TO THE HUMAN RELATIONS COMMISSION THAT HE HAD BEEN TURNED
DOWN FOR MEMBERSHIPS IN FOUR CLUBS AFTER IDENTIFYING HIMSELF AS BLACK WHEN
THE CITY DEMANDED MEMBERSHIP ROSTERS AND TAX RECORDS TO DETERMINE WHETHER
THE CLUBS SERVE A BUSINESS PURPOSE THE CLUBS SUED PREEMPTIVELY

KEVIN O'BRYON A BOSTON CLUB LAWYER DECLINES COMMENT ON THE CASE BUT THE
CLUBS IN COURT PAPERS ARGUE THAT THE NEW ORLEANS LAW IS AN
UNCONSTITUTIONAL IMPINGEMENT ON CITIZENS' RIGHTS OF FREE ASSOCIATION AND
FURTHERMORE DOESN'T APPLY TO THE CLUBS BECAUSE THEY NEITHER USE PUBLIC
AMENITIES NOR ALLOW BUSINESS TO BE CONDUCTED ON THEIR PREMISES

CITY OFFICIALS DISPUTE THE LATTER CONTENTION THEY CITE TESTIMONY BY SOME
CLUB MEMBERS DURING DEPOSITIONS LAST SUMMER THAT THEIR CLUB DUES HAD BEEN
PAID BY THEIR COMPANIES SUCH PAYMENTS IN THE CITY'S EYES IMPUTE A
BUSINESS FUNCTION THAT BRINGS THE CLUBS UNDER THE ANTIDISCRIMINATION LAW
THE CURRENT FEDERALCOURT CASE WHICH ISN'T BEING PRESIDED OVER BY JUDGE
MENTZ WILL ULTIMATELY DECIDE THE ISSUE THOUGH LAWYERS ON BOTH SIDES SAY
THEY DO NOT EXPECT A QUICK RULING

AS TO MR HUNT'S SNUBBING A BOSTON CLUB INSIDER SAYS THE CALIFORNIA MAN
HIS RACE ASIDE WAS TREATED LIKE ANYONE ELSE WHO MIGHT SEEK MEMBERSHIP THE
BOSTON CLUB DOESN'T IN FACT ACCEPT APPLICATIONS' FROM ANYONE HE SAYS
PROSPECTIVE MEMBERS INSTEAD ARE PUT UP FOR MEMBERSHIP BY OTHER MEMBERS
 AND CAN BE REJECTED IF FIVE OF THE CLUB'S ROUGHLY 575 OR SO MEMBERS VOTE
TO KEEP THEM OUT

LEGAL SCHOLARS ARE WATCHING THE LILJEBERG CASE WITH SOME INTEREST
IRONICALLY A 1988 CASE THAT THE LILJEBERGS LOST SET THE CURRENT SUPREME
COURT STANDARD FOR DETERMINING WHETHER A JUDGE'S PERSONAL CONNECTIONS WITH
LAWYERS OR LITIGANTS ARE GROUNDS FOR DISQUALIFICATION AS FOR JUDGE MENTZ'S
MEMBERSHIP IN THE BOSTON CLUB SOME LEGALETHICS EXPERTS THINK HE IS ON
SHAKY LEGAL GROUND IF HE INSISTS IN STAYING BOTH IN THE CLUB AND ON THE
FEDERAL BENCH

UNDER CANON 2C OF THE JUDICIAL CODE OF CONDUCT FEDERAL JUDGES MAY NOT
BELONG TO ANY CLUB THAT PRACTICES INVIDIOUS DISCRIMINATION DEFINED
BROADLY AS ONE THAT ARBITRARILY EXCLUDES FROM MEMBERSHIP ON THE BASIS OF
RACE RELIGION SEX OR NATIONAL ORIGIN PERSONS WHO WOULD OTHERWISE BE
ADMITTED

AN EXCEPTION SAYS STEPHEN GILLERS A LAW PROFESSOR AT NEW YORK UNIVERSITY'S
LAW SCHOOL MIGHT BE A JUDGE WHO BELONGS TO A COMMUNITY BEACH CLUB THAT
THOUGH IT HAS AN OPENADMISSION POLICY HAPPENS TO BE ALL WHITE BECAUSE NO
BLACKS LIVE THERE BUT IF A CLUB ISN'T GEOGRAPHICALLY SEQUESTERED AND HAS
EXCLUSIONARY MEMBERSHIP POLICIES A JUDGE'S MEMBERSHIP IS FORBIDDEN HE
ADDS

NO STATISTICS ARE AVAILABLE ON HOW MANY FEDERAL JUDGES BELONG TO PRIVATE
CLUBS THOUGH LEGAL GROUPS THAT TRACK ETHICAL ISSUES BELIEVE THE NUMBERS
GIVEN THE CONSTRAINTS OF CANON 2C AND THE CONTROVERSY THAT SUCH
MEMBERSHIPS ENGENDER ARE SMALL HERE OF THE HANDFUL OF JUDGES THOUGHT TO
BELONG TO SUCH CLUBS MOST ARE IN ORGANIZATIONS THAT HAVE RECENTLY
INTEGRATED THEIR MEMBERSHIPS IN LINE WITH THE CITY ORDINANCE LAWYERS SAY

IT'S GENERALLY ACCEPTED AS A NECESSARY FORM OF REASSURANCE TODAY TO MEMBERS
OF MINORITY GROUPS THAT JUDGES HAVE DISENGAGED THEMSELVES FROM THE OLD
WHITEMALE FRATERNAL APPROACH OF THINKING ABOUT THE WORLD SAYS GEOFFREY
HAZARD JR PROFESSOR OF LEGAL ETHICS AT THE UNIVERSITY OF PENNSYLVANIA

THE MATTER OF JUDGE MENTZ'S BOSTON CLUB MEMBERSHIP BASED ON MR FONTE'S
COMPLAINT IS NOW IN SECRET COMPLEX PROCEEDINGS BEFORE THE CHIEF JUDGE OF
THE EASTERN DISTRICT COURT HERE BUT SHOULD THE COURT FIND THAT THE BOSTON
CLUB INDEED PRACTICES INVIDIOUS DISCRIMINATION JUDGE MENTZ COULD BE ASKED
TO CHOOSE BETWEEN HIS JOB AND HIS CLUB TECHNICALLY FEDERAL JUDGES ARE
APPOINTED FOR LIFE AND CAN BE REMOVED ONLY BY IMPEACHMENT BUT JUDGE MENTZ'S
SENIOR STATUS ON THE BENCH WHICH HE VOLUNTARILY TOOK SOME TIME AGO MEANS
HE CAN AUTOMATICALLY BE RETIRED SHOULD HIS CASELOAD FALL BELOW ONEFOURTH OF
THE CASELOAD OF A FULLTIME JUDGE CASES ARE ASSIGNED AT THE DISCRETION OF
THE CHIEF JUDGE THUS SHOULD JUDGE MENTZ'S SUPERIOR ADVISE HIM TO STEP DOWN
FROM THE BOSTON CLUB AND SHOULD HE DECLINE HE COULD BE EASED INTO
RETIREMENT

SOME LAWYERS WHO KNOW THE 73YEAROLD JUDGE MENTZ AND HAVE PRACTICED BEFORE
HIM SAY HE ISN'T GENERALLY CONSIDERED THE KIND OF JURIST WHO WOULD LET
SOCIAL CONNECTIONS INTERFERE WITH HIS IMPARTIALITY BUT THEY ALSO SAY THAT
HE IS FOND OF HIS SOCIAL STANDING AMONG NEW ORLEANS'S OLD GUARD AND MIGHT BE
LOATH TO RELINQUISH HIS MEMBERSHIP IN THE BOSTON CLUB AND A HANDFUL OF OTHER
PRIVATE CLUBS GIVEN THAT HE IS SEMIRETIRED AND SITS ON THE BENCH ONLY PART
TIME

JUDGE MENTZ LIVES WITH HIS WIFE IN A LOVELY OLD HOUSE IN THIS CITY'S GARDEN
DISTRICT IN 1990 HE SERVED AS A CHAIRMAN OF THE SOCIAL DIRECTORY OF NEW
ORLEANS A PUBLICATION THAT STYLES ITSELF A CHRONICLER OF THE CITY'S
ARISTOCRACY OF MERIT THE DIRECTORY LISTED JUDGE MENTZ AS ONE OF THE
ACTIVE AND DISTINGUISHED MEMBERS OF THE SOCIAL SCENE AND/OR MEMBERS OF
OLDLINE FAMILIES

THE JUDGE WELCOMED A REPORTER TO HIS OFFICE RECENTLY AND PROUDLY SHOWED OFF
A WALL OF PICTURES OF HIS FAMILY INCLUDING YEARSOLD PHOTOGRAPHS OF TWO
DEBUTANTE DAUGHTERS COMING OUT IN NEW ORLEANS SOCIETY JUDGE MENTZ ALSO
CASUALLY NOTED HIS MEMBERSHIP IN A LOCAL MASONIC LODGE RELATING THE STORY
OF HIS SUPPORT SOME TIME AGO OF A MUSLIM LAWYER WHO WISHED TO JOIN AND WHO
TOOK HIS OATH OF MEMBERSHIP ON THE KORAN INSTEAD OF THE BIBLE

WHETHER OR NOT JUDGE MENTZ GIVES UP HIS CLUBS FOR THE BENCH IT SEEMS CLEAR
THAT THE CLUBS INVOLVED IN THE SUIT AGAINST THE CITY THE BOSTON CLUB THE
LOUISIANA CLUB THE PICKWICK CLUB AND THE STRATFORD CLUB WANT TO PRESERVE
CONTROL OVER THEIR MEMBERSHIP POLICIES IN A SOMETIMES TESTY EXCHANGE WITH A
CITY LAWYER ELEANOR GRAHAM THE BOSTON CLUB'S KENNEDY GILLY MAINTAINED THAT
CLUBMEMBERSHIP RULES ARE WRITTEN IN SUCH A WAY AS TO PRESERVE THE AMBIENCE
OF THE CLUB THE WAY IT WAS HANDED DOWN TO US

MR GILLY IS ALSO A PAST PRESIDENT OF THE LOUISIANA CLUB MS GRAHAM ASKED
MR GILLY IF THERE ARE ANY MEMBERS OF THE LOUISIANA CLUB WHO ARE OF AFRICAN
DESCENT

I DON'T KNOW OF ANY MEMBERS OF THE LOUISIANA CLUB WHO ARE OF AFRICAN
DESCENT MR GILLY REPLIED BUT HE NOTED THAT UNDER A LOUISIANA LAW LEFT
OVER FROM THE STATE'S SEGREGATIONIST PAST ANY TRACEABLE MIXTURE OF NEGRO
BLOOD WOULD MAKE SOMEONE IN LAW A NEGRO OR COLORED WHATEVER THE TERM IS IN
THE LOUISIANA CIVIL CODE BUT I CERTAINLY HAVEN'T TRACED ANYBODY'S GENEALOGY
BACK TO ADAM AND EVE TO DETERMINE WHETHER THERE'S ANY TRACEABLE ADMIXTURE

IN A SEPARATE DEPOSITION GEORGE MAYER THE BOSTON CLUB'S PRESIDENT TOOK A
SIMILAR TACK IN RESPONSE TO QUESTIONS ABOUT WHETHER THE CLUB HAS EVER
ADMITTED A BLACK MEMBER

THERE IS NO WAY I CAN ANSWER THAT MR MAYER REPLIED

CAN YOU TELL ME WHY A CITY ATTORNEY ASKED

BECAUSE UNLESS YOU HAVE THE GENEALOGY GOING BACK MANY MANY YEARS THERE
JUST ISN'T ANY WAY

LATER THE ATTORNEY ASKS WHETHER MR MAYER HAD EVER MADE JUDGMENTS ABOUT THE
RACE OF A PERSON WITHOUT EXAMINING A GENEALOGY

NO HE REPLIED

WELL I'M MOMENTARILY AT A LOSS BECAUSE I FIND THAT EXTREMELY UNUSUAL  
 ARE THERE ANY BLACK EMPLOYEES IN THE BOSTON CLUB

YES MR MAYER SAID

HOW DO YOU KNOW

THEY ARE COLORED HE REPLIED 9401250009 940125 STATE FARM EXPECTS TO
RECEIVE 115000 EARTHQUAKE CLAIMS

BLOOMINGTON ILL STATE FARM MUTUAL AUTOMOBILE INSURANCE CO THE BIGGEST
PROPERTY AND CASUALTY INSURER IN THE US SAID IT EXPECTS TO RECEIVE
115000 CLAIMS FROM VICTIMS OF LAST WEEK'S EARTHQUAKE IN LOS ANGELES

THAT'S FOUR TIMES THE NUMBER THE COMPANY RECEIVED AFTER THE SAN FRANCISCO
EARTHQUAKE IN 1989 WHEN STATE FARM PAID 120 MILLION IN CLAIMS STATE FARM
DID NOT SAY HOW MUCH IT EXPECTS TO PAY LOS ANGELES CLAIMANTS

SEAN MOONEY AN ECONOMIST WITH THE INSURANCE INFORMATION INSTITUTE SAID THE
AVERAGE INSURANCE CLAIM IS LIKELY TO BE SMALLER FROM THE LOS ANGELES QUAKE
THAN FROM THE SAN FRANCISCO QUAKE BECAUSE PROPERTY VALUES ARE LOWER IN THE
HARDESTHIT AREAS ANOTHER REASON IS MANY OF THE CLAIMS WON'T BE LARGE
ENOUGH TO TRIGGER A PAYMENT BECAUSE OF THE HIGH DEDUCTIBLES UNLIKE IN SAN
FRANCISCO THE FEDERAL GOVERNMENT IS ENCOURAGING HOMEOWNERS TO FILE CLAIMS
 EVEN IF THEY DON'T TOP THE DEDUCTIBLE BECAUSE IT WILL SPEED UP
PAPERWORK FOR FEDERALDISASTER ASSISTANCE

ANALYSTS EXPECT THE INSURANCE INDUSTRY TO PAY ABOUT 15 BILLION TO 2
BILLION ON THE EARTHQUAKE STATE FARM WRITES ABOUT 25 OF ALL HOMEOWNER
POLICIES IN CALIFORNIA BUT IS NOT A MAJOR WRITER OF COMMERCIAL INSURANCE
THE INDUSTRY PAID 1 BILLION IN CLAIMS ON THE SAN FRANCISCO EARTHQUAKE

IF STATE FARM GETS AS MANY EARTHQUAKE CLAIMS AS IT EXPECTS IT WOULD BE ONE
OF THE LARGEST CLAIMS TOTALS IN COMPANY HISTORY ITS BIGGEST CATASTROPHE WAS
1992'S HURRICANE ANDREW WHEN THE COMPANY RECEIVED 160000 CLAIMS AND PAID
36 BILLION THE TYPICAL EARTHQUAKE CLAIM IS SMALLER THAN THE TYPICAL
HURRICANE CLAIM BECAUSE OF A MUCH HIGHER DEDUCTIBLE 9401250008 940125
BUSINESS BRIEF QUANTUM CORP THIRDPERIOD NET FELL 78 DUE TO
PRICING COMPETITION

QUANTUM CORP MILPITAS CALIF SAID FISCAL THIRDQUARTER NET INCOME FELL
78 AS PRICING COMPETITION CONTINUES TO RAVAGE THE COMPUTER DISKDRIVE
INDUSTRY

QUANTUM EARNED 61 MILLION OR 14 CENTS A SHARE COMPARED WITH 28 MILLION
OR 62 CENTS A SHARE A YEAR EARLIER IN THE PERIOD ENDED JAN 2 SALES WERE
523 MILLION UP 14 FROM 4593 MILLION

THE COMPANY POINTED OUT THAT NEW PRODUCTS AND OTHER FACTORS HELPED BOOST ITS
GROSS MARGINS RISING TO 11 FROM 2 IN THE SECOND QUARTER ITS BIGGEST
CUSTOMER IS APPLE COMPUTER CO WHICH REPRESENTS 17 OF THE COMPANY'S SALES
AND HAS SLASHED PRICES TO BOOST DEMAND FOR ITS PERSONAL COMPUTERS
9401250007 940125 INTERNATIONAL CONSULTANTS VIE FOR SLICE OF AID 
FOR PALESTINIANS  BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL
STREET JOURNAL

JERUSALEM SINCE THE SEPT 13 SIGNING OF THE PEACE ACCORD BETWEEN ISRAEL
AND THE PALESTINE LIBERATION ORGANIZATION WESTERN NATIONS HAVE BEEN
PLEDGING FINANCIAL SUPPORT FOR THE NEW PALESTINIAN SELFGOVERNING AUTHORITY
NOW CONSULTING FIRMS ARE STREAMING INTO JERUSALEM IN THE HOPES OF HELPING
THE PALESTINIANS SPEND THEIR EXPECTED WINDFALL

WITH 2 BILLION PROMISED TO THE PLO OVER THE NEXT FIVE YEARS IT'S NOT
SURPRISING THERE IS A GOLD RUSH

MOST EUROPEAN UNION MEMBERS HAVE SPONSORED COMMERCIAL DELEGATIONS HERE AND
COMPANIES FROM CANADA JAPAN AND THE ARAB WORLD HAVE ALSO COME CALLING BUT
IT IS THE AMERICANS WHO ARE MOST NOTICEABLE TO THE POINT WHERE THE
PALESTINIANS JOKE IT IS NO LONGER POSSIBLE TO SIP COFFEE IN THE GARDEN OF
THE AMERICAN COLONY HOTEL IN EAST JERUSALEM WITHOUT A US CONSULTANT
PULLING UP A CHAIR AND MAKING A BUSINESS PROPOSITION

THEY ARE OVERWHELMING THE PALESTINIANS' DECISIONMAKING APPARTUS SAYS ONE
WESTERN DIPLOMAT IT'S TURNED INTO A BIT OF A FREEFORALL

SOME FIRMS SUCH AS CHEMONICS INTERNATIONAL A WASHINGTON DC SUBSIDIARY
OF ERLY INDUSTRIES OF LOS ANGELES HAVE WORKED BEFORE IN THE OCCUPIED
TERRITORIES IT HAS EVALUATED AND MONITORED PROGRAMS OF THE SIX PRIVATE
ORGANIZATIONS THAT RECEIVE FUNDING FROM THE US AGENCY FOR INTERNATIONAL
DEVELOPMENT THE CONDUIT FOR US ASSISTANCE IN THE WEST BANK AND GAZA
STRIP

OTHER FIRMS ARE TAKING TENTATIVE FIRST STEPS A PRICE WATERHOUSE PARTNER IN
THE COMPANY'S BALTIMORE MD OFFICE SPENDING A SIXMONTH SABBATICAL WITH
THE PHILANTHROPIC RYAN FAMILY FOUNDATION OF BALTIMORE FLEW INTO JERUSALEM
IN OCTOBER

HE RAN FREE WORKSHOPS IN BETHELEHEM NABLUS JERUSALEM AND GAZA OVER THE
COURSE OF A WEEK THE PRICE WATERHOUSE REPRESENTATIVE THE HEAD OF THE RYAN
FAMILY FOUNDATION AND A FORMER XEROX CORP OFFICIAL GAVE PRESENTATIONS ON
ORGANIZATION PLANNING AND COMMUNICATION TO 600 PALESTINIANS

THE ENTHUSIASTIC RESPONSE LED MEMBERS OF PRICE WATERHOUSE'S INTERNATIONAL
GROUP AND THE RYAN FOUNDATION TO MEET LAST MONTH WITH USAID OFFICIALS TO
SEEK AS MUCH AS 6 MILLION IN FUNDING TO COVER STARTUP AND INITIAL
OPERATING COSTS TO ESTABLISH A MANAGEMENT INSTITUTE IN THE WEST BANK AND
GAZA DESIGNED TO TRAIN ABOUT 17000 PALESTINIANS IN THE COMING THREE YEARS

USAID ASSISTANCE TO THE PALESTINIANS HAS GROWN FROM 12 MILLION IN FISCAL
1992 TO 75 MILLION THIS YEAR AND FOR THE FIRST TIME THE AGENCY HAS OPENED
ITS ASSISTANCE PROGRAMS TO BIDDING BY CONTRACTORS RATHER THAN DISTRIBUTING
THE MONEY EXCLUSIVELY THROUGH PRIVATE VOLUNTARY AND NONGOVERNMENTAL
ORGANIZATIONS

WHILE EACH OF THE SLATED USAID PROGRAMS IS RELATIVELY SMALLINCLUDING 25
MILLION FOR HOUSING 22 MILLION FOR HEALTH 11 MILLION FOR THE PRIVATE
SECTOR AND 15 MILLION FOR MUNICIPAL DEVELOPMENT THEY ARE ALL LONGTERM
PROJECTS THAT OFFER CONSULTING FIRMS SUSTAINED REVENUE OVER A PERIOD OF
SEVERAL YEARS

THEY ALSO OFFER CONSULTANTS A CHANCE TO POSITION THEMSELVES BETTER TO TAKE
ADVANTAGE OF THE MYRIAD REGIONAL DEVELOPMENT PROJECTS EXPECTED TO TAKE OFF
AFTER ISRAEL AND THE REST OF ITS ARAB NEIGHBORS SIGN PEACE TREATIES

AND WHILE US AID MONEY REMAINS THE MAIN MARKET FOR THE CONSULTING FIRMS
IT IS CERTAINLY NOT THE ONLY ONE PARTICIPATION IN WORLD BANKFUNDED
PROJECTS IS OPEN TO ALL COUNTRIES AND SOME US FIRMS EITHER HAVE EUROPEAN
AFFILIATES OR BUSINESS ARRANGEMENTS WITH EUROPEAN COMPANIES THAT WILL ENABLE
THEM TO REAP BENEFITS FROM THE 600 MILLION IN AID PLEDGED BY THE EUROPEAN
UNION FORMERLY THE EUROPEAN COMMUNITY

THE RECENT INFLUX OF CONSULTING FIRMS HAS LED SOME PALESTINIAN BUSINESSMEN
TO COMPLAIN THAT THEY ARE BEING PRESSURED TO MAKE HASTY DECISIONS SOME
IDEAS PROPOSED BY US CONSULTING FIRMS SUCH AS ONE COMPANY'S SUGGESTION
TO SOLVE THE PALESTINIANS' HOUSING CRISIS BY IMPORTING MASSIVE NUMBERS OF
MOBILE HOMES HAVE BOLSTERED FEARS THAT FIRMS ARE RUSHING IN PROMOTING
PROJECTS WITHOUT TAKING INTO ACCOUNT PALESTINIAN DESIRES AND NEEDS

PALESTINIANS FIRST OF ALL WANT TO FUND PROJECTS THAT WILL CREATE NEW JOBS
AND DEVELOP THEIR PROFESSIONAL SKILLS BUT THERE ARE ALSO MORE MUNDANE
CONSIDERATIONS SUCH AS THE BROILING HOT SUMMERS AND WET WINTERS OF THE
MIDDLE EAST WHICH MAKE LIFE IN A MOBILE HOME MOST UNPLEASANT

THE PALESTINIANS' BIGGEST COMPLAINT IS THAT THE CONSULTING FIRMS AREN'T
COORDINATING THEIR PROJECTS WITH THE PALESTINIAN ECONOMIC COUNCIL FOR
DEVELOPMENT AND RECONSTRUCTION OR PECDAR WHICH IS SUPPOSED TO DIRECT THE
BULK OF THE AID SPENDING PECDAR HAS COME UNDER RECENT CRITICISM FROM THE
DONOR COUNTRIES FOR LACKING ENOUGH MEMBERS WHO HAVE THE NECESSARY FINANCIAL
EXPERTISE TO MANAGE HUGE SUMS OF AID MONEY FROM THE WEST

THE AMOUNT OF AID IS LIMITED SO WE WANT TO MAKE SURE THAT IT IS GOING TO
BE SPENT ON PROJECTS THAT ARE A PRIORITY FOR US SAYS AMIN HADDAD A
DIRECTOR OF THE TECHNICAL COMMITTEES ASSIGNED TO WORK ON ALL ASPECTS OF
PALESTINIAN SELFRULE

ONE CONSULTANT SAYS THE US COMPANIES HAVE GOTTEN A BUM RAP IT'S
UNDERSTANDABLE HE SAYS THAT THE PALESTINIANS DON'T WANT OUTSIDERS COMING
IN TELLING THEM HOW TO DEVELOP BUT BOTH SIDES NEED EACH OTHER HE ARGUES
ADDING THE DONORS AREN'T JUST GOING TO DUMP THE MONEY INTO YASSER ARAFAT'S
POCKET 9401250006 940125 WHO'S NEWS REDWOOD EMPIRE BANCORP

REDWOOD EMPIRE BANCORP SANTA ROSA CALIF JOHN R OLSEN 65 YEARS OLD
A RETIRED SENIOR VICE PRESIDENT FOR STANDARD INSURANCE CO AND JOHN B
STUPPIN 60 A PRIVATE INVESTMENT BANKER WERE NAMED TO THE BOARD OF THIS
BANK HOLDING COMPANY THE APPOINTMENTS INCREASE THE BOARD TO NINE MEMBERS
9401250005 940125 LETTERS TO THE EDITOR NISSAN VAN OWNERS BECAME
GUINEA PIGS

YOUR DEC 9 ARTICLE NISSAN RECALLS AND DESTROYS SOME MINIVANS
LEAVES READERS WITH THE IMPRESSION THAT NISSAN'S REACTION TO THE SERIOUS
SAFETY HAZARD THESE VANS PRESENT IS AN EXAMPLE OF CORPORATE GOODWILL AND
RESPONSIBILITY ON THE CONTRARY NISSAN VAN OWNERS AND THEIR CHILDREN WERE
AT RISK OF BEING CAUGHT IN A BURNING VAN WHILE NISSAN FIDDLED WITH BANDAID
FIXES THIS IS NOT CORPORATE RESPONSIBILITY THIS IS CUSTOMER ABUSE

FOUR FAILED RECALLS TO FIX PROBLEMS THAT CAUSE ENGINE COMPARTMENT FIRES
ARE AT LEAST THREE TOO MANY AFTER THE THIRD FAILED RECALL NISSAN FOUGHT
OUR PETITION THAT SOUGHT TO FORCE A BUYBACK OF ALL THAT REMAINS OF THE
33000 VANS NISSAN SOLD IN THIS COUNTRY NISSAN THEN LAUNCHED A SECRET
CAMPAIGN TO BUY BACK VANS TOO HEATDAMAGED TO FIX FOR AS LITTLE AS 3000 OR
AS MUCH AS 9000 FROM THOSE PEOPLE WHO RAISED AN ENORMOUS FUSS ALL THE
WHILE NISSAN SERVICE REPRESENTATIVES AND HOTLINE OPERATORS FALSELY TOLD
INQUIRING OWNERS THAT THE COMPANY WAS NOT REPURCHASING ANY VANS

NISSAN'S EFFORT TO AVOID BEING THE FIRST JAPANESE MANUFACTURER TO REMOVE AN
ENTIRE PRODUCT LINE FROM THE HIGHWAY HAS FORCED VAN OWNERS TO BECOME GUINEA
PIGS FOR NISSAN'S VARIOUS EXPERIMENTAL FIXES SUBJECTING THESE PEOPLE TO THE
CONTINUED RISK OF FIRE THE VANS ARE SO PROBLEMPLAGUED THAT THEIR RESALE
VALUE IS LITTLE MORE THAN SCRAP METAL LEAVING MANY OWNERS UPSIDEDOWN IN
THEIR CAR LOANS OWING MUCH MORE THAN THEIR VAN IS WORTH

NISSAN ACKNOWLEDGES THAT ITS FOURTH RECALL WILL PROBABLY ALSO FAIL BY
INSTALLING A COMPLEX AUDIBLE AND VISUAL WARNING SYSTEM AND A GOVERNOR THAT
LIMITS THE SPEED OF AN OVERHEATED VAN TO 36 MILES PER HOUR AND WHAT WILL
HAPPEN THEN WILL NISSAN SLAP ON ANOTHER BANDAID

RALPH HOAR & ASSOCIATES IS A VEHICLESAFETY RESEARCH FIRM THAT FIRST
PETITIONED FOR REPURCHASE OF THE MINIVANS 9401250004 940125 TECHNOLOGY
BRIEF HEWLETTPACKARD CO VENTURE FOR INTERACTIVE TV IS SET WITH
PACIFIC TELESIS

HEWLETTPACKARD CO AND PACIFIC TELESIS GROUP SAID THEY WOULD JOINTLY BUILD
AN INTERACTIVE VIDEO SYSTEM THAT WILL ENABLE CONSUMERS IN CERTAIN CALIFORNIA
MARKETS TO ORDER MOVIES AND OTHER PROGRAMS BY EARLY NEXT YEAR

UNDER AN AGREEMENT HEWLETTPACKARD BASED IN PALO ALTO CALIF WILL
PROVIDE LARGE VIDEO SERVERS TO WAREHOUSE DATA AND TRANSMIT IT TO HOMES
WHILE PACIFIC TELESIS VIDEO SERVICES A UNIT OF SAN FRANCISCOBASED PACIFIC
TELESIS WILL OFFER ITS ONDEMAND SERVICES TO CUSTOMERS IN SAN DIEGO
ORANGE COUNTY LOS ANGELES AND SILICON VALLEY

INITIALLY SUBSCRIBERS WILL BE ABLE TO CHOOSE FROM A LIST OF HIT MOVIES TV
PROGRAMS AND SPECIAL EVENTS USING A SIMPLE REMOTECONTROL DEVICE CUSTOMERS
WILL BE ABLE TO STOP REWIND OR FASTFORWARD A PROGRAM JUST AS THEY DO WITH
A VIDEOCASSETTE RECORDER

TERMS OF THE DEAL WERE NOT DISCLOSED 9401250003 940125 MARKETING & MEDIA
 ADVERTISING CBS VIRTUALLY SELLS OUT AD SPOTS FOR OLYMPICS AT HEALTHY
PRICES  BY KEVIN GOLDMAN

WITH LESS THAN THREE WEEKS TO GO BEFORE THE OLYMPIC FLAME IS LIT IN
LILLEHAMMER NORWAY THE CBS NETWORK IS QUIETLY BOASTING ABOUT WHAT IT
CONSIDERS ITS OWN OLYMPIAN FEAT THE WINTER GAMES ARE VIRTUALLY SOLD OUT AT
HEALTHY PRICES RANGING FROM 250000 TO 350000 FOR EACH 30SECOND SPOT

IT'S QUITE A DIFFERENT SITUATION FROM TWO YEARS AGO WHEN CBS BROADCAST THE
WINTER OLYMPICS FROM ALBERTVILLE FRANCE THEN CBS SCRAMBLED TO SELL
ADVERTISING AT A DISCOUNT WITH SOME SPOTS GOING FOR LESS THAN 250000

THIS TIME AROUND CBS IS GUARANTEEING ADVERTISERS AN AVERAGE AUDIENCE RATING
OF 186 IN 1992 THE NETWORK WAS TOO CONSERVATIVE ABOUT THE AUDIENCE THAT
IT GUARANTEED ESTIMATING 171 OF US HOMES WITH TV SETS WOULD WATCH IN
THE END CBS HAD AVERAGE RATINGS OF 187

IT WAS AN AWFUL CLIMATE IN 1992 FOR ADVERTISING SAYS JOSEPH D ABRUZZESE
CBS SENIOR VICE PRESIDENT OF TELEVISION NETWORK SALES YET DESPITE THE
SLUGGISH AD SALES HE SAYS THE NETWORK BROKE EVEN ON ITS 243 MILLION BID
FOR US TELEVISION RIGHTS TO THE 1992 WINTER OLYMPICS

CBS CHAIRMAN LAURENCE A TISCH TOLD A NEWS CONFERENCE THIS MONTH THAT THE
NETWORK EXPECTS TO MAKE MONEY ON THE 1994 WINTER OLYMPICS FOR WHICH IT PAID
300 MILLION TO SECURE TELEVISION RIGHTS

THAT IS WELCOME NEWS TO EVEN CBS'S BROADCASTNETWORK RIVALS CAPITAL
CITIES/ABC AND GENERAL ELECTRIC'S NBC IT SIGNIFIES RENEWED CONFIDENCE THAT
THE THREE MAJOR BROADCAST NETWORKS CAN DELIVER LARGE AUDIENCES FOR MAJOR
EVENTS

CBS IS LUCKY BECAUSE OF A CONFLUENCE OF MARKETING EVENTS SAYS JON MANDEL
SENIOR VICE PRESIDENT OF GREY ADVERTISING THE OLYMPICS IS A MARQUEE SPORTS
EVENT AT A TIME WHEN THERE ARE FEW SUCH MAJOR AUDIENCEGRABBING PROGRAMS
THERE IS NO SUMMER OLYMPICS AS THERE WAS IN 1992 TO SIPHON AD SPENDING
ALSO THE ADVERTISING MARKETPLACE IS RECOVERING WITH STRONG NETWORK SALES IN
PRIMETIME AND DAYTIME SAYS MR MANDEL

WHAT'S MORE THERE ARE PITCHED MARKETING BATTLES AMONG MAJOR ADVERTISERS
THAT FREELY SPEND MILLIONS ON CAMPAIGNS FOR EXAMPLE AMERICAN TELEPHONE &
TELEGRAPH SPRINT AND MCI COMMUNICATIONS ARE ALL ADVERTISING DURING THE
OLYMPICS WHICH WILL BE BROADCAST EARLY MORNING PRIMETIME AND LATE LATE
NIGHT OVER 120 HOURS FROM FEB 12 TO FEB 27

SIMILARLY AMERICAN EXPRESS AND VISA INTERNATIONAL ALSO ENGAGED IN A
NEVERENDING MARKETSHARE SKIRMISH ARE BOTH ADVERTISING HEAVILY AND
FASTFOOD RIVALS MCDONALD'S AND WENDY'S INTERNATIONAL ARE MAJOR SPONSORS A
CBS EXECUTIVE SAYS WENDY'S IS OUTSPENDING MCDONALD'S A SPONSOR OF THE
WINTER GAMES

OTHER MAJOR SPONSORS INCLUDE CHRYSLER WHICH WILL ADVERTISE ITS NEW NEON
AUTOMOBILE AND OTHER MODELS FORD MOTOR JOHNSON & JOHNSON KMART EASTMAN
KODAK WALT DISNEY COCACOLA ANHEUSERBUSCH AND VF CORP'S LEE JEANS JOHN
HANCOCK MUTUAL LIFE INSURANCE NORTHWESTERN MUTUAL LIFE INSURANCE AND
PRINCIPAL FINANCIAL GROUP ALSO WILL HAVE A MULTITUDE OF SPOTS

ADVERTISING BUT NOT CONSIDERED MAJOR SPONSORS BY THE NETWORK ARE
KELLOGG NESTLE AND XEROX

REEBOK INTERNATIONAL WILL BREAK ONE OF ITS FIRST CAMPAIGNS FROM LEO BURNETT
WHICH REPLACED CHIAT/DAY LAST YEAR ONE REEBOK AD WHICH WAS FILMED IN LOS
ANGELES THIS PAST WEEKEND WILL STAR FIGURE SKATER NANCY KERRIGAN WHO IS ON
CENTER STAGE AS A RESULT OF LAST MONTH'S ATTACK AGAINST HER ALLEGEDLY
CARRIED OUT BY INDIVIDUALS CLOSE TO RIVAL TONYA HARDING WHO ISN'T SET TO
APPEAR IN ANY ADS

THE REEBOK CAMPAIGN WILL FEATURE WOMEN ATHLETES WHO EXCEL IN THEIR SPORTS
INCLUDING SANDRA FARMER PATRICK WHO COMPETES IN THE 400METER HURDLES
JULIE FOUDY CAPTAIN OF THE WORLD CUP CHAMPIONSHIP SOCCER TEAM AND NANCY
FEIGEN WHOM REEBOK DESCRIBES AS THE NO 1RANKED ROCK CLIMBER

INTERNATIONAL BUSINESS MACHINES IS SCHEDULED TO MAKE ITS FIRST OLYMPICS
ADVERTISING WITH A NEW IMAGE CAMPAIGN TIED DIRECTLY TO THE OLYMPICS FROM
WELLS RICH GREENE BDDP THE AGENCY IS SILENT ON DETAILS ALTHOUGH ONE
ADINDUSTRY EXECUTIVE SAYS THE ADS WILL SHOW IBM'S CONTRIBUTION TO MANAGING
THE OLYMPIC GAMES

A FOURPAGE PULLOUT AD IN FEBRUARY'S ISSUE OF LIFE MAGAZINE MAY FORESHADOW
THE TELEVISION SPOTS WITHOUT THE SLIGHTEST EXAGGERATION WE CAN PROUDLY
SAY THAT EVERYTHING YOU'LL SEE  WILL BE TOUCHED IN SOME WAY BY IBM
SAYS THE AD WITH THE HEADLINE GOLD SILVER BRONZE AND BLUE IBM'S
NICKNAME IS BIG BLUE

THIS TIME AROUND CBS'S MR ABRUZZESE SAYS THE NETWORK TOOK IN 100 MILLION
FROM ADVERTISERS WHO WEREN'T IN THE 1992 GAMES BUT SOME COMPANIES THAT
ADVERTISED IN THE 1992 WINTER GAMES ARE CHOOSING TO SIT OUT THIS YEAR'S
OLYMPICS AMONG THE NOSHOWS MILLER BREWING MARS AND THE US POSTAL
SERVICE

ALREADY CBS'S MR ABRUZZESE SAYS HE IS GETTING CALLS FROM ADVERTISERS
INTERESTED IN SPONSORING THE 1998 WINTER GAMES IN NAGANO JAPAN CBS
CERTAINLY WILL NEED ALL OF THE ADVERTISERS IT CAN GET THEN BECAUSE THE
NETWORK WILL PAY 375 MILLION FOR THE TELEVISION RIGHTS

HAS MR ABRUZZESE CLOSED ANY DEALS YET FOR FOUR YEARS FROM NOW NO HE
RESPONDS BUT IT ISN'T BECAUSE HE DOESN'T WANT TO WE ARE PROHIBITED FROM
SIGNING DEALS HE SAYS UNTIL THE CORPORATE SPONSORS ARE DECIDED

BURGER KING A UNIT OF GRAND METROPOLITAN TODAY IS EXPECTED TO NAME THREE
FINALISTS IN A REVIEW FOR THE CREATIVE PORTION OF ITS ESTIMATED 100
MILLIONPLUS NATIONAL ACCOUNT

THEY ARE AMMIRATI & PURIS NEW YORK INTERPUBLIC GROUP'S LOWE &
PARTNERS/SMS NEW YORK AND EURO RSCG'S MESSNER VETERE BERGER MCNAMEE
SCHMETTERER BURGER KING DECLINED TO COMMENT AGENCY OFFICIALS COULDN'T BE
REACHED

ELIMINATED FROM THE COMPETITION IS SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI
ADVERTISING NEW YORK WHICH HAS A FOOT IN THE DOOR WITH THE CLIENT
CREATING ITS CHILDREN'S ADVERTISING ALSO ELIMINATED WPP GROUP'S OGILVY &
MATHER AN AGENCY THAT SOME OBSERVERS CONSIDERED HAD AN INSIDE TRACK BECAUSE
OF ITS RECENT EXPERIENCE WITH HARDEE'S FOOD SYSTEMS THE INCUMBENT ON THE
ACCOUNT D'ARCY MASIUS BENTON & BOWLES NEW YORK IS COMPETING FOR THE MEDIA
PORTION OF THE BUSINESS

NUTRI/SYSTEM INC HORSHAM PA SAID IT SELECTED GRAY KIRK/VANSANT
BALTIMORE TO CREATE ADS FOR THE LAUNCH OF A NEW WELLNESS PROGRAM IT PLANS
AT NUTRI/SYSTEM CENTERS THIS SPRING

NUTRI/SYSTEM SPENDS ABOUT 30 MILLION A YEAR ON ADVERTISING

NUTRI/SYSTEM CAME OUT OF BANKRUPTCYCOURT PROTECTION LAST MONTH IT HAD
HIRED THE PHILADELPHIA OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS LAST
FALL FOR A WEIGHTLOSS CAMPAIGN THAT AGENCY ALSO PITCHED FOR THE NEW
ASSIGNMENT NUTRI/SYSTEM SAID IT DECLINED TO NAME THE OTHER CONTENDERS

ACCOUNT FIRST INTERSTATE BANCORP LOS ANGELES SAID IT SELECTED HAL RINEY &
PARTNERS SAN FRANCISCO FOR ITS ESTIMATED 25 MILLION TO 30 MILLION
ACCOUNT THE ACCOUNT WAS HANDLED BY CAMPBELL & WAGMAN LOS ANGELES IN THE
REVIEW'S FINAL ROUND RINEY BESTED THE LOS ANGELES OFFICE OF OMNICOM GROUP'S
DDB NEEDHAM

REVIEW MINOLTA CORP A RAMSEY NJ UNIT OF MINOLTA CAMERA CO HAS PUT
ITS ESTIMATED 10 MILLION TO 15 MILLION AD ACCOUNT INTO REVIEW A MINOLTA
SPOKESMAN SAID CONFIRMING REPORTS IN TRADE PUBLICATIONS SAATCHI &
SAATCHI'S CME KHBB IS THE INCUMBENT ON THE PHOTOGRAPHIC PORTION OF THE
BUSINESS BOZELL A UNIT OF BOZELL JACOBS KENYON & ECKHARDT HANDLES THE
OFFICECOPIER AND BUSINESSEQUIPMENT PORTION CONSULTANT ALAN ACHENBAUM IS
CONDUCTING THE SEARCH

MCCANN INTERPUBLIC GROUP'S MCCANNERICKSON ACQUIRED 100 OF MCCANNERICKSON
HAKUHODO THE JAPANESE AGENCY IT HAD OPERATED IN A JOINT VENTURE WITH THE
JAPANESE AD AGENCY HAKUHODO MCCANN PREVIOUSLY OWNED 51 AND HAKUHODO 49
THE AGENCY WITH ESTIMATED BILLINGS OF 750 MILLION IS DROPPING HAKUHODO
FROM ITS NAME 9401250002 940125 CALIFORNIA'S EDWARDS IS EXPECTED TO
LEAVE CONGRESS AT YEAR END

WASHINGTON DON EDWARDS THE DEAN OF THE CALIFORNIA DELEGATION AND A
POWERFUL VOICE FOR CIVIL LIBERTIES AS THE RANKING DEMOCRAT ON THE HOUSE
JUDICIARY COMMITTEE IS EXPECTED TO RETIRE AT THE END OF THIS YEAR AFTER
MORE THAN THREE DECADES IN CONGRESS

THE 79YEAROLD LAWMAKER HAS SCHEDULED A NEWS CONFERENCE FOR THIS MORNING IN
HIS SAN JOSE DISTRICT HIS RETIREMENT IS THE MOST SIGNIFICANT IN A SERIES OF
DEPARTURES THAT WILL DRASTICALLY ALTER THE COMMITTEE'S HIERARCHY

ONLY YESTERDAY REP BILL HUGHES D NJ CHAIRMAN OF THE SUBCOMMITTEE ON
INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION ANNOUNCED HIS RETIREMENT
AND REP ROMANO MAZZOLI D KY A SUBCOMMITTEE CHAIRMAN WHO GAVE HIS NAME
TO LANDMARK IMMIGRATION LEGISLATION IN THE 1980S HAS SAID HE WON'T SEEK
ANOTHER TERM

THE MOVES WILL EXPAND THE INFLUENCE OF REP MIKE SYNAR AN OUTSPOKEN
POPULISTSTYLED OKLAHOMAN WHO AT JUST 44 YEARS OLD NEXT YEAR WILL RANK
BEHIND ONLY CHAIRMAN JACK BROOKS OF TEXAS AND JOHN CONYERS OF MICHIGAN WITH
MAJOR TELECOMMUNICATIONS LEGISLATION PENDING MR SYNAR WILL HAVE POWER
BASES IN BOTH THE JUDICIARY AND ENERGY AND COMMERCE COMMITTEES MORE
BROADLY HE REFLECTS A GENERATION OF YOUNGER MEMBERS RISING AMID THE
UPHEAVAL IN CONGRESS

BY CONTRAST MR EDWARDS'S REASONED DIGNIFIED STYLE HAS LONG SET HIM APART
IN THE HOUSE AND DESPITE HIS LIBERAL IMAGE TODAY HE WAS A FEDERAL BUREAU
OF INVESTIGATION AGENT AS A YOUNG MAN AND CAME TO DEMOCRATIC POLITICS ONLY
AFTER A CAREER IN BUSINESS AS CHAIRMAN OF THE CIVIL AND CONSTITUTIONAL
RIGHTS SUBCOMMITTEE HE WAS MAJOR PLAYER IN CIVILRIGHTS DISPUTES WITH THE
REAGAN AND BUSH ADMINISTRATIONS AND MORE RECENTLY HAS BEEN A STRONG
PROPONENT OF ABORTIONRIGHTS LEGISLATION 9401250001 940125 LEHMAN BROS 
TO BE SPUN OFF AFTER INFUSION  PARENT AMERICAN EXPRESS TO SPEND
OVER 1 BILLION FOR UNIT'S NEW STOCK  BY WALL STREET JOURNAL
REPORTERS STEVEN LIPIN ALEXANDRA PEERS AND G BRUCE KNECHT IN NEW YORK

NEW YORK AMERICAN EXPRESS CO SAID IT WILL SPEND MORE THAN 1 BILLION TO
SPIN OFF ITS LEHMAN BROTHERS INC INVESTMENT BANKING UNIT AS A PUBLICLY
TRADED COMPANY

TO PREPARE LEHMAN FOR PUBLIC OWNERSHIP AMERICAN EXPRESS WILL PUMP MONEY
INTO LEHMAN BY BUYING 890 MILLION IN NEWLY CREATED LEHMAN COMMON STOCK AND
200 MILLION IN NEW LEHMAN PREFERRED SHARES

THE STOCK PURCHASES ARE INTENDED TO PROVIDE A CAPITAL INFUSION THAT WILL PUT
THE NEWLY INDEPENDENT LEHMAN WHICH HAS BEEN OWNED BY AMERICAN EXPRESS FOR
NEARLY A DECADE ON A SOUND FINANCIAL FOOTING BUT THE INFUSION IS DOUBLE
THE AMOUNT AMERICAN EXPRESS EXECUTIVES TOLD ANALYSTS LAST SUMMER THAT IT
WOULD TAKE TO SHORE UP LEHMAN'S BALANCE SHEET REFLECTING DEMANDS BY RATING
AGENCIES

WHEN COMPLETED IN APRIL THE LONGEXPECTED SPINOFF WILL REDUCE AMERICAN
EXPRESS'S EQUITY BY 24 BILLION BASED ON THE COMPANY'S OWN VALUATION OF
LEHMAN AND THE COST OF THE SHARE PURCHASES AMERICAN EXPRESS WILL DISTRIBUTE
THE LEHMAN COMMON SHARES TO AMERICAN EXPRESS SHAREHOLDERS AS A TAXFREE
DIVIDEND AMERICAN EXPRESS WILL RETAIN THE PREFERRED SHARES BUT THE SPINOFF
WILL HAVE NO EFFECT ON AMERICAN EXPRESS'S EARNINGS YESTERDAY THE COMPANY
REPORTED RECORD 1993 PROFIT HELPED IN PART BY A LARGE ONETIME GAIN RELATED
TO THE SALE OF ANOTHER UNIT

THE EXPENSIVE SPINOFF COMPLETES A NEARLY TWOYEAR PLAN TO SHED UNITS NOT
CONSIDERED STRATEGIC TO THE COMPANY'S FOCUS ON PERSONAL FINANCIAL SERVICES
SINCE 1981 AMERICAN EXPRESS HAD SPENT ALMOST 4 BILLION ON VARIOUS
ILLCONCEIVED EFFORTS TO BECOME A FULLSERVICE FINANCIAL SUPERMARKET BUT
MERCHANT BANKING FAILURES SUCH AS A SOURED BRIDGE LOAN TO PRIME COMPUTER
INC AND THE VOLATILITY THAT IS PART OF THE SECURITIES BUSINESS CONVINCED
THE COMPANY THAT IT SHOULD GET OFF WALL STREET AND BACK ONTO MAIN STREET
THE SHIFT IN STRATEGY ACCELERATED AFTER HARVEY GOLUB WAS NAMED CHIEF
EXECUTIVE OFFICER ONE YEAR AGO TODAY

ON ONE HAND IT DOES TAKE AWAY FROM AMERICAN EXPRESS'S EQUITY BASE SAID
JOHN KEEFE AN INDEPENDENT FINANCIAL ANALYST BUT LEHMAN WOULD HAVE
THREATENED THE COMPANY AND ITS CREDIT RATING IN THE NEXT DOWNTURN IN THE
SECURITIES BUSINESS IT'S A VERY GOOD IDEA

AMERICAN EXPRESS WILL HAVE A CHANCE TO EARN BACK SOME OF ITS SPINOFF
EXPENSES THE SPINOFF ARRANGEMENT CALLS FOR THE HUGE CHARGE CARD COMPANY TO
RECEIVE 50 OF ANY LEHMAN BROTHERS NET INCOME IN EXCESS OF 400 MILLION A
YEAR NOT TO EXCEED 50 MILLION OR SO A YEAR OR CUMULATIVELY 400 MILLION
OVER AN EIGHTYEAR PERIOD

FOR LEHMAN FOUNDED IN 1850 THE BIGGEST BENEFIT IS THAT THE COMPANY RANKED
THIRD WORLDWIDE AS AN UNDERWRITER OF STOCK AND BOND OFFERINGS IS ONCE
AGAIN FREE IT HAD NINE YEARS OF OFTEN ROCKY RELATIONS WITH ITS CORPORATE
PARENT AND WITH ITS FORMER PARTNER SHEARSON AMONG OTHER IRRITANTS LEHMAN
OFFICIALS RESENTED BEING SADDLED WITH LEGAL TIES TO TROUBLED SHEARSON
LIMITED PARTNERSHIPS

SHEARSON AND LEHMAN WHICH AMERICAN EXPRESS HAD MELDED INTO AN UNWIELDY
PARTNERSHIP ANNOUNCED IN MARCH 1993 THAT THEY WERE GOING THEIR SEPARATE
WAYS THE TWO HAD BEEN OPERATING AS SEPARATE ENTITIES SINCE 1990 WHEN
LEHMAN REVIVED ITS NAME ON A SEPARATE DIVISION SHEARSON JOINED TRAVELERS
INC'S SMITH BARNEY HARRIS UPHAM & CO BROKERAGE UNIT IN JULY

LEHMAN MANAGEMENT WILL PARTICIPATE IN AND PROBABLY PROFIT FROM THE STOCK
OFFERING LAST SEPTEMBER IN LIEU OF THEIR 1993 BONUSES THE TOP 900 OR SO
SENIOR MANAGERS WERE OFFERED SHARES IN A 60 MILLION PRIVATE PLACEMENT OF
PHANTOM LEHMAN STOCK LEHMAN VALUED ITS PHANTOM SHARES AT 10 EACH AND
WILL CONVERT THEM 1FOR1 INTO REAL SHARES PROBABLY AT A HIGHER PRICE 
WHEN THE COMPANY'S SHARES ARE DISTRIBUTED TO SHAREHOLDERS AN EMPLOYEE STOCK
OWNERSHIP PLAN WILL PUMP ANOTHER 100 MILLION INTO LEHMAN THE CLOCK WAS
TICKING FOR AMERICAN EXPRESS LEHMAN WAS ANXIOUS TO GO PUBLIC BEFORE THE END
OF THE ALREADY THREEYEAROLD UNDERWRITING BOOM

AS LEHMAN PREPARES TO FLY SOLO MONEY MANAGERS ANALYSTS AND EVEN RIVALS SAY
WHAT THE COMPANY HAS GOING FOR IT IS AN ENVIED REPUTATION FOR CLIENT SERVICE
AND A VENERABLE NAME THAT STILL CARRIES TREMENDOUS CACHET ON WALL STREET
OTHER ASSETS 9000 EMPLOYEES A TONY HEADQUARTERS IN NEW YORK'S WORLD
FINANCIAL CENTER WELLRESPECTED FIXEDINCOME AND RESEARCH DIVISIONS AND A
GLOBAL DERIVATIVES BUSINESS THAT'S GROWING RAPIDLY

BUT THE FIRM LOST THE HUGE SHEARSON NETWORK OF STOCKBROKERS A MAJOR SELLING
POINT TO CLIENTS IT HAS HAD STORMY RELATIONSHIPS WITH OTHER FIRMS ON THE
STREET AND HAS BEEN FAULTED IN THE PAST FOR BUYING MARKET SHARE THROUGH
PREDATORY PRICING SO FAR IT HASN'T HAD THE CASH TO PLAY IN THE BIG
LEAGUES AT 205 BILLION LEHMAN HAS HALF THE EQUITY CAPITAL OF SOME OF ITS
COMPETITORS AMERICAN EXPRESS'S CAPITAL INFUSION WILL BRING LEHMAN'S EQUITY
CAPITAL TO 33 BILLION THE MONEY SHOULD HELP LEHMAN MAINTAIN A SINGLEA
CREDIT RATING ON A STANDALONE BASIS AND MAY PAVE THE WAY FOR IT TO CREATE A
TRIPLEARATED DERIVATIVES UNIT A PROVEN BUSINESSGETTER FOR OTHER
INVESTMENT BANKS

RICHARD FULD JR WILL REMAIN LEHMAN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER
A CHAIRMAN MAY BE NAMED LATER THE COMPANY SAID THREE MAJOR UNITS REMAIN
THE SPINOFF OF LEHMAN WILL LEAVE AMERICAN EXPRESS WITH THREE MAJOR OPERATING
UNITS TRAVEL RELATED SERVICES IDS FINANCIAL SERVICES AND AMERICAN EXPRESS
BANK OUR OVERRIDING OBJECTIVE WILL BE TO MAKE AMERICAN EXPRESS THE WORLD'S
MOST RESPECTED SERVICE BRAND SAID MR GOLUB NOW CHAIRMAN AND CHIEF
EXECUTIVE OF AMERICAN EXPRESS

IN ADDITION TO THE LEHMAN ANNOUNCEMENT AMERICAN EXPRESS ALSO REPORTED
FOURTHQUARTER EARNINGS OF 399 MILLION OR 78 CENTS A SHARE THE EARNINGS
WHICH COMPARE WITH A YEAREARLIER 82 MILLION OR 15 CENTS A SHARE THAT
INCLUDED A 217 MILLION RESTRUCTURING CHARGE WERE SLIGHTLY HIGHER THAN WALL
STREET EXPECTATIONS OF 74 CENTS A SHARE

THE ANNOUNCEMENTS WERE MADE LATE YESTERDAY AFTERNOON IN COMPOSITE TRADING
ON THE NEW YORK STOCK EXCHANGE AMERICAN EXPRESS CLOSED AT 3150 UP 625
CENTS

MOST OF THE COMPANY'S MAJOR OPERATING UNITS HAD BETTER EARNINGS IN THE
FOURTH QUARTER THAN THEY DID THE YEAR BEFORE THE COMPANY'S FLAGSHIP TRAVEL
RELATED SERVICES UNIT HAD NET INCOME OF 213 MILLION UP FROM 181 MILLION
A YEAR EARLIER IDS FINANCIAL SERVICES HAD NET OF 98 MILLION UP FROM 82
MILLION THE AMERICAN EXPRESS BANK HAD PROFIT OF 20 MILLION IN BOTH YEARS

TRAVEL RELATED SERVICES' QUARTERLY RESULTS INCLUDED SEVERAL POSITIVE
DEVELOPMENTS FOR THE FIRST TIME SINCE THE FOURTH QUARTER OF 1991 THE
NUMBER OF ITS OUTSTANDING CARDS INCREASED ON A YEAROVERYEAR BASIS FROM
347 MILLION AT THE END OF 1992 TO 354 MILLION AT THE END OF LAST YEAR THE
INCREASE INCLUDED APPROXIMATELY 900000 CARDS THAT WERE ISSUED TO FEDERAL
GOVERNMENT EMPLOYEES AS PART OF A PREVIOUSLY ANNOUNCED CONTRACT

THE TOTAL AMOUNT OF MONEY BILLED THROUGH CARDS ALSO INCREASED FROM BOTH THE
PREVIOUS QUARTER AND THE FOURTH QUARTER OF 1992 AND ALTHOUGH NET REVENUE
RECEIVED BY TRS WAS BASICALLY FLAT DUE TO A CONTINUED DECLINE IN THE
DISCOUNT PAID BY MERCHANTS EARNINGS WERE HELPED BY IMPROVING CREDIT
QUALITY THE FOURTHQUARTER PROVISION FOR LOSSES AND OTHER CLAIMS WAS 395
MILLION DOWN FROM 493 MILLION A YEAR BEFORE

THE NUMBERS AREN'T WHAT THEY WERE FIVE YEARS AGO AND THE ENVIRONMENT FOR
TRAVEL AND RETAIL SPENDING IS STILL PRETTY TOUGH BUT IT DOES SEEM TO BE
IMPROVING SAID MR KEEFE THE INDEPENDENT STOCK ANALYST

LEHMAN BROTHERS HAD NET INCOME OF 114 MILLION COMPARED WITH A 166 MILLION
LOSS A YEAR BEFORE 9401240183 940124 COGNEX CORP EXPECTS TO REPORT
SHARP RISE IN 4THQUARTER PROFIT

NEEDHAM MASS COGNEX CORP CITING STRONG GROWTH IN JAPAN SAID IT IS
COMFORTABLE WITH ANALYSTS' EXPECTATIONS THAT IT WILL POST FOURTHQUARTER NET
INCOME OF 33 MILLION OR 18 CENTS TO 19 CENTS A SHARE

IN THE 1992 FOURTH QUARTER COGNEX HAD NET INCOME OF 821000 OR FIVE CENTS
A SHARE AFTER 1 MILLION IN SPECIAL CHARGES ON REVENUE OF 71 MILLION
THE PERSHARE FIGURE WAS RESTATED TO REFLECT A 2FOR1 STOCK SPLIT IN LAST
SEPTEMBER

ROBERT J SHILLMAN CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT
REVENUE IN THE LATEST QUARTER WAS ABOUT 123 MILLION TO 124 MILLION

COGNEX IS A MAKER OF MACHINE VISION SYSTEMS OR COMPUTERS THAT REPLACE
HUMAN VISION IN IDENTIFYING AND INSPECTING PRODUCTS AS THEY ARE
MANUFACTURED

MR SHILLMAN SAID REVENUE IN JAPAN JUMPED 94 IN 1993 AS CUSTOMERS INCREASED
THEIR ORDERS IN THE FOURTH QUARTER MORE THAN HALF OF COGNEX'S TOTAL ORDERS
WERE BOOKED IN JAPAN FOR THE YEAR 51 OF ITS ORDERS WERE BOOKED THERE

JAPANESE MANUFACTURING INNOVATION SEEMS TO LEAD THE REST OF THE WORLD THE
JAPANESE ARE WILLING TO INVEST AND APPLY NEW TECHNOLOGY MORE READILY THAN
US MANUFACTURERS MR SHILLMAN SAID WHILE THE JAPANESE ECONOMY IS STILL
UNCERTAIN COGNEX SAID MOST OF ITS CUSTOMERS ARE ORIGINALEQUIPMENT
MANUFACTURERS OF ELECTRONIC SEMICONDUCTOR AND PHARMACEUTICAL PRODUCTS THAT
ARE BEING EXPORTED TO US HONG KONG AND EUROPEAN MARKETS

COGNEX SAID IT EXPECTS THE JAPANESE MARKET TO CONTINUE TO GROW IN 1994
SINCE IT SIGNED 26 NEW JAPANESE CUSTOMERS LAST YEAR NEW CUSTOMERS TYPICALLY
TAKE ABOUT NINE MONTHS TO REACH FULL PRODUCTION THE COMPANY SAID

FOR ALL OF 1993 COGNEX SAID IT IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS
THAT IT WILL POST EARNINGS OF 11 MILLION OR 61 CENTS TO 63 CENTS A SHARE
ON REVENUE OF 434 MILLION TO 435 MILLION IN 1992 THE COMPANY HAD NET
OF 61 MILLION OR 35 CENTS A SHARE ON REVENUE OF 286 MILLION
9401240182 940124 WHAT'S NEWS  WORLDWIDE

JAPAN'S RULING COALITION FACED AN UNCERTAIN FUTURE AFTER LOSING A KEY VOTE

HOSOKAWA'S GOVERNMENT WAS THROWN INTO TURMOIL AFTER PARLIAMENT'S REJECTION
OF LEGISLATION TO REFORM THE NATION'S POLITICAL SYSTEM THE POLITICAL
UNCERTAINTY SPARKED BY FRIDAY'S VOTE COULD HAMPER ECONOMIC POLICIES
VISITING TREASURY SECRETARY BENTSEN SAID THAT THE PRIME MINISTER DUE TO
MEET CLINTON NEXT MONTH TO SIGN A TRADE AGREEMENT OBVIOUSLY HAS HIS WORK
CUT OUT FOR HIM HOSOKAWA THIS WEEK WILL ATTEMPT TO PUSH THROUGH SOME KIND
OF REFORM PACKAGE

JAPAN REPORTED THAT ITS MERCHANDISE TRADE SURPLUS INCREASED 16 IN DECEMBER
AND GREW TO A RECORD 12040 BILLION FOR ALL OF 1993

EMBATTLED FEDERAL OFFICIALS INSISTED THEY WERE DOING ALL THEY COULD TO COPE
WITH THE DEVASTATION FROM LAST WEEK'S EARTHQUAKE IN LOS ANGELES AS THE
DEATH TOLL ROSE TO 56 AND DAMAGE ESTIMATES CLIMBED TWO STRONG AFTERSHOCKS
ONE MEASURING 40 ON THE RICHTER SCALE JOLTED THE CITY

DEPUTY DEFENSE CHIEF PERRY HAS BECOME THE FRONTRUNNER TO SUCCEED DEFENSE
SECRETARY ASPIN WHITE HOUSE OFFICIALS SAID PERRY A MILITARY TECHNOLOGIST
AND DEFENSE INTELLECTUAL IS FAVORED BY MANY MEMBERS OF THE SENATE AND HOUSE
ARMED SERVICES PANELS HOWEVER PERRY MAY BE RELUCTANT TO TAKE THE JOB

THE DEFENSE DEPARTMENT HAS CANCELED PLANS TO CONDUCT A CONTROVERSIAL AIDS
VACCINE TRIAL AFTER MONTHS OF WRANGLING AMONG FEDERAL AGENCIES OPPOSED TO
THE TRIAL OF A VACCINE MADE BY MICROGENESYS THE PENTAGON SAID IT WILL SPEND
THE 20 MILLION EARMARKED FOR THE TRIAL ON VACCINE THERAPIES AND RESEARCH

NATIONAL MEDICAL CARE AGREED TO CORRECT MANUFACTURING PROBLEMS AT ITS FIVE
US PRODUCTION FACILITIES THE WR GRACE UNIT WHICH IS THE NATION'S
BIGGEST PROVIDER OF DIALYSIS SERVICES AND PRODUCTS AGREED TO THE STEP AFTER
SHARP PRODDING FROM THE FDA WHICH CITED SAFETY AND QUALITY PROBLEMS THAT
NECESSITATED RECALLS

AN ASTHMA MEDICATION HAS BEEN LINKED TO HEALTH PROBLEMS ACCORDING TO
LAWSUITS THAT HAVE BEEN FILED AND COMPLAINTS MADE TO THE FDA COPLEY
PHARMACEUTICAL RECALLED THE DRUG ALBUTEROL THIS MONTH AFTER DISCOVERING
SAMPLES CONTAMINATED WITH BACTERIA

SIX CHILDREN WERE KILLED BY MORTAR FIRE SATURDAY WHILE THEY WERE SLEDDING IN
A SARAJEVO SUBURB THREE OTHER CHILDREN WOUNDED IN THE ATTACK AWAITED
POSSIBLE EVACUATION TODAY FOR TREATMENT BOSNIA'S PRIME MINISTER URGED THE
UN AND THE US TO DEMAND AIR STRIKES AGAINST SERB ARTILLERY POSITIONS
SURROUNDING THE CAPITAL

CHINA AGREED TO GRANT EXPANDED OPERATING RIGHTS TO FOREIGN BANKS AND THE
US SAID IT WILL HELP CHINA IMPROVE THE TOOLS FOR MANAGING ITS ECONOMY
TREASURY SECRETARY BENTSEN AND CHINA'S FINANCE MINISTER SAID THAT THE
ACCORDS REFLECT A COMMITMENT TO IMPROVE THE NATIONS' TRADE AND INVESTMENT
TIES

ATTORNEY GENERAL RENO VOWED SHE WOULD DO ALL THAT SHE COULD TO ENSURE THE
INDEPENDENCE OF HER SPECIAL COUNSEL'S PROBE INTO CLINTON'S ARKANSAS
FINANCIAL DEALINGS RENO SAID SHE HAD TRIED TO MAKE SURE THAT FISKE HAS ALL
THE TIME AND MONEY THAT HE NEEDS TO COMPLETE AN INDEPENDENT REPORT

ISRAEL SAID IT WAS VERY CLOSE TO BREAKING A PEACE DEADLOCK WITH THE PLO
AFTER A MEETING IN OSLO SATURDAY BETWEEN FOREIGN MINISTER PERES AND PLO
LEADER ARAFAT MEANWHILE PRIME MINISTER RABIN SAID HE WAS READY FOR DIRECT
TALKS ANYWHERE WITH SYRIA'S ASSAD

TWO WESTERN ECONOMISTS QUIT AS ADVISERS TO REFORMERS IN THE RUSSIAN
GOVERNMENT SAYING THE NEW GOVERNMENT'S POLICIES ARE STRONGLY CONTRARY TO
THEIR VIEWS ANDERS ASLUND OF THE STOCKHOLM SCHOOL OF ECONOMICS AND JEFFREY
SACHS OF HARVARD UNIVERSITY SUBMITTED THEIR RESIGNATIONS TO PRESIDENT
YELTSIN ON FRIDAY

HOODED GUNMEN BURST INTO A STREET PARTY ORGANIZED BY A LEFTWING GROUP IN
COLOMBIA KILLING AT LEAST 33 PEOPLE AND WOUNDING EIGHT THE ARMY SAID THE
GUNMEN WERE BELIEVED TO BE MEMBERS OF A RIVAL LEFTIST FACTION

RIVAL ARMY FACTIONS CLASHED IN LESOTHO LEAVING AT LEAST TWO SOLDIERS DEAD
AND FOUR CIVILIANS WOUNDED ARTILLERY AND MORTAR FIRE WAS TRADED ACROSS
MASERU THE CAPITAL OF THE SOUTHERN AFRICAN NATION 9401240181 940124
BUSINESS BRIEF TYCO SETS CUTS IN EUROPEAN OPERATIONS EXPECTS TO POST
WIDER 4THQUARTER LOSS

MT LAUREL NJ TYCO TOYS INC IN AN EFFORT TO CUT COSTS AFTER TWO
YEARS OF DISAPPOINTING SALES SAID IT WILL REDUCE EUROPEAN OPERATIONS AND
TAKE A 26 MILLION FOURTHQUARTER CHARGE

THE TOY MAKER SAID IT EXPECTS TO POST A LOSS OF ABOUT 59 MILLION
SIGNIFICANTLY WIDER THAN THE 82 MILLION LOSS IN THE 1992 FOURTH QUARTER
SALES WERE ABOUT 250 MILLION COMPARED WITH 249 MILLION A YEAR EARLIER
TYCO SAID

THE MAKER OF LITTLE MERMAID RADIOCONTROL CARS AND OTHER TOYS HAS BEEN IN A
SLUMP FOR THE PAST TWO YEARS AFTER STRINGING TOGETHER A SERIES OF HITS
BEFORE THAT THE DISAPPOINTING RESULTS REFLECT CONTINUED WEAKNESS IN OUR
US INTERNATIONAL AND PLAYTIME UNITS SAID RICHARD E GREY CHAIRMAN AND
CHIEF EXECUTIVE OFFICER RESULTS ARE TO BE ANNOUNCED FEB 10

TYCO SAID IT WILL COMBINE THE GERMAN OPERATIONS OF ITS MATCHBOX UNIT WITH
ITS TYCO GERMANY UNIT A MOVE IT PROJECTS WILL RESULT IN SUBSTANTIAL
OPERATING EFFICIENCIES BEGINNING IN 1994 THE COMPANY SAID IT ALSO PLANS TO
SELL ITS YEAROLD ITALIAN SUBSIDIARY AND THEN SELL TOYS IN ITALY THROUGH
DISTRIBUTORS

TYCO'S ESTIMATED FOURTHQUARTER NET LOSS WOULD INDICATE THE COMPANY PLANS TO
REPORT A FULLYEAR LOSS OF ABOUT 70 MILLION IN 1992 IT EARNED 18
MILLION OR 60 CENTS A SHARE SALES IN 1993 ARE EXPECTED TO TOTAL 7322
MILLION DOWN 4 FROM 7686 MILLION A YEAR EARLIER

SEPARATELY THE TOY MAKER NAMED MICHAEL J LYDEN TO THE NEW POST OF
PRESIDENT OF ITS TYCO US BUSINESS UNIT

THE ROAD IN THE MONTHS AHEAD WILL BE PRECARIOUS FOR TYCO PREDICTED JILL
KRUTICK AN ANALYST FOR SALOMON BROTHERS INC THE COMPANY WHICH WAS IN
VIOLATION OF SOME CONVENANTS IN ITS BANK AGREEMENTS EXPECTS TO HAVE NEW
TERMS IN PLACE BY NEXT MONTH MS KRUTICK SAID STILL DAVID LEIBOWITZ
ANALYST FOR REPUBLIC NEW YORK SECURITIES CORP FORECASTS THAT TYCO WILL
REPORT RED INK IN THE FIRST HALF OF 1994

MR LEIBOWITZ SAID TYCO INDICATED IN A CONFERENCE CALL WITH ANALYSTS FRIDAY
THAT IT PLANS TO RAISE UP TO 50 MILLION IN A PREVIOUSLY DISCLOSED PRIVATE
EQUITY OFFER LESS THAN WHAT SOME HAD SPECULATED TYCO WOULD NEED TO RAISE

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY TYCO CLOSED AT 8625
OFF 25 CENTS 9401240180 940124 DIAGNOSTEK EXPECTS TO POST HIGHER PROFIT
 FOR ITS THIRD QUARTER

ALBUQUERQUE NM DIAGNOSTEK INC SAID IT EXPECTS TODAY TO REPORT NET
INCOME OF ABOUT 3 MILLION OR 12 CENTS A SHARE FOR ITS FISCAL THIRD
QUARTER WHICH ENDED DEC 31

IN THE YEAREARLIER PERIOD THE PROVIDER OF PHARMACY SERVICES EARNED 13
MILLION OR FIVE CENTS A SHARES AFTER CHARGES IN AN INTERVIEW BILL
BARRON DIAGNOSTEK'S CHIEF FINANCIAL OFFICER SAID REVENUE WAS FLAT IN THE
LATEST PERIOD AT ABOUT 999 MILLION

THE IMPROVEMENT REFLECTS IN PART ABOUT 2 MILLION IN CHARGES IN THE
YEAREARLIER PERIOD THOSE CHARGES RELATED TO LOSSES FROM THE SALE OF A
MUTUAL FUND INVESTMENT AND LEGAL EXPENSES LINKED TO AN ABORTED MERGER
AGREEMENT WITH MEDCO CONTAINMENT SERVICES INC

DUKE RODRIGUEZ CHIEF OPERATING OFFICER SAID THE COMPANY HAS SEEN A 7
IMPROVEMENT IN PROFIT MARGINS BY COMBINING THE PURCHASING OF ITS VARIOUS
UNITS TO OBTAIN ADDITIONAL DISCOUNTS FROM SUPPLIERS WE ARE USING THE FULL
LEVERAGE OF OUR COMPANY IN PURCHASING ACTIVITIES HE SAID ADDING THAT THE
COMPANY HAS SEEN A DRAMATIC DROP IN THE PRICES IT PAYS FOR MANY GENERIC
DRUGS

STILL COMPANY EXECUTIVES SAID MUCH OF THE IMPROVEMENT IN MARGINS HAS BEEN
OFFSET BY HIGHER OPERATING COSTS RELATED TO EXPANSION AND DIVERSIFICATION
MOVES

IN OCTOBER DIAGNOSTEK ANNOUNCED THE 27 MILLION ACQUISITION OF PERFORM COST
MANAGEMENT SERVICES INC A SCOTTSDALE ARIZ MANAGER OF PRESCRIPTION
CLAIMS ALSO IN OCTOBER THE COMPANY ACQUIRED CHRONITECH HEALTH SERVICES
INC A CLOSELY HELD SAN FRANCISCO PROVIDER OF PHARMACY AND OTHER MEDICAL
SERVICES TO HIV AND AIDS PATIENTS FOR 9 MILLION IN CASH AND STOCK THE
COMPANY IS ALSO EXPANDING ITS ALBUQUERQUE FACILITY

WITH COSTCUTTING PRESSURES ON MARGINS IN THE MAILORDER PHARMACY BUSINESS
MR RODRIGUEZ SAID DIAGNOSTEK WILL CONCENTRATE ON PROVIDING PHARMACY
MANAGEMENT SERVICES TO MORE HOSPITALS AND MANAGEDCARE PROVIDERS
9401240179 940124 WHO'S NEWS COMERICA INC

COMERICA INC DETROIT JOHN D LEWIS 45 YEARS OLD FORMERLY EXECUTIVE
VICE PRESIDENT OF THIS BANKING CONCERN WAS NAMED VICE CHAIRMAN AND A
DIRECTOR OF THE COMPANY 9401240178 940124 NORTHWEST KLM CUT SOME FARES
 ON OVERSEAS FLIGHTS  BY ROBERT L ROSE STAFF REPORTER OF THE
WALL STREET JOURNAL

NORTHWEST AIRLINES AND ITS PARTNER KLM ROYAL DUTCH AIRLINES CUT LEISURE
FARES TO EUROPE THE MIDDLE EAST AND AFRICA FOR SPRING SUMMER AND SOME FALL
TRAVEL AND OTHER BIG CARRIERS INDICATED THEY WOULD FOLLOW

THE FARE CUTS OF AS MUCH AS 30 WHICH ALSO INCLUDE FLIGHTS TO INDIA ARE
UNUSUAL BECAUSE THEY ARE FOR TRAVEL BETWEEN APRIL 1 AND OCT 31 A PERIOD
WHEN TRAVEL BEGINS TO PICK UP AND THEN PEAKS IN THE SUMMER MONTHS

THIS IS AWFUL EARLY TO DO SOMETHING SAID A SPOKESMAN FOR DELTA AIR LINES
WHICH HAS THE MOST TRANSATLANTIC FLIGHTS OF ANY US CARRIER STILL THE
DELTA SPOKESMAN SAID THE ATLANTABASED AIRLINE WILL MAKE OURSELVES
COMPETITIVE WITH THE NORTHWEST/KLM CUTS

OTHER CARRIERS WITH SIGNIFICANT BUSINESS ABROAD ECHOED THOSE COMMENTS IN
CHICAGO THE UNITED AIRLINES UNIT OF UAL CORP SAID IT WOULD BE COMPETITIVE
IN MARKETS WHERE IT COMPETES WITH NORTHWEST AND KLM THE AMERICAN AIRLINES
UNIT OF AMR CORP FORT WORTH TEXAS SAID IT TOO WOULD BE COMPETITIVE
WITH NORTHWEST

THE NORTHWEST FARE CUTS AND THE INCLINATION OF OTHERS TO QUICKLY FOLLOW
SHOW HOW COMPETITIVE TRANSATLANTIC FLYING HAS BECOME INDEED THESE LATEST
CUTS PICK UP ALMOST WHERE PREVIOUS ONES LEFT OFF LAST FALL MOST OF THE
CARRIERS CUT LEISURE FARES TO EUROPE FOR TRAVEL THROUGH MARCH 15

NORTHWEST THE ST PAUL MINN UNIT OF NORTHWEST AIRLINES CORP BILLED THE
CUTS AS THE FIRST JOINT SALE BETWEEN IT AND KLM AND A CHANCE FOR TRAVELERS
TO SEE NEW AND EXCITING AND EXOTIC MARKETS AT A VALUE PRICE

THE TWO AIRLINES HAVE SAID THEY PLAN MORE COOPERATIVE EFFORTS AND SAID THIS
WAS AN EXAMPLE MANY OF THE ROUTES ESPECIALLY THOSE OUTSIDE EUROPE REQUIRE
TRAVEL THROUGH KLM'S HUB IN AMSTERDAM

NORTHWEST SAID THE LOWER FARES APPLY TO 89 DESTINATIONS AMONG OTHER
RESTRICTIONS THE TICKETS REQUIRE A STAY OVER A SATURDAY NIGHT AND AREN'T
REFUNDABLE TICKETS FOR TRAVEL TO INDIA THE MIDDLE EAST AND AFRICA MUST BE
PURCHASED BY FEB 11 TICKETS TO EUROPE MUST BE PURCHASED BY FEB 28 BUT
THE AIRLINE SAID THE BEST BARGAINS ARE AVAILABLE ON TICKETS BOUGHT BY FEB
11

AMONG THE TICKET PRICES CITED BY NORTHWEST 638 FOR ROUNDTRIP TRAVEL
BETWEEN DETROIT AND PARIS 758 BETWEEN SAN FRANCISCO AND AMSTERDAM 898
BETWEEN BOSTON AND TEL AVIV AND 1258 BETWEEN NEW YORK AND BOMBAY INDIA
9401240176 940124 FANS INVOKE ROBERT BURNS'S MUSE A STEAMING PILE OF
SHEEP INTESTINES  BY PAUL BECKETT SPECIAL TO THE WALL STREET
JOURNAL

AT DINNER TABLES THE WORLD OVER TOMORROW NIGHT ALL EYES IF NOT ALL
APPETITES WILL BE FOCUSED ON A STEAMING HEAP OF SHEEP'S INNARDS OATMEAL
ONIONS AND SPICES SERVED FROM A SHEEP'S WELLSCRUBBED STOMACH

MEET PERHAPS THE MOST PECULIAR OF SCOTTISH IDIOSYNCRACIES THE HAGGIS AN
INDIGENOUS DISH THAT IS THE CULINARY STAR OF TRADITIONAL BURNS SUPPERS
HELD ON THE ANNIVERSARY OF THE BIRTH OF THE SCOTTISH POET ROBERT BURNS AT
THE AMERICANSCOTTISH FOUNDATION'S BLACKTIE SUPPER IN MANHATTAN THE HAGGIS
WILL BE PARADED ON A TRAY AROUND ALL THE GUESTS TO THE ACCOMPANIMENT OF
BAGPIPES THEN PRESENTED TO A TABLE OF DIGNITARIES

AN EMCEE WILL PUBLICLY ADDRESS THE HAGGIS WITH THE BURNS POEM TO A HAGGIS
IN WHICH BURNS LAUDS IT AS THE GREAT CHIEFTAN O' THE PUDDINRACE AT THE
POEM'S CLIMAX HE WILL CEREMONIOUSLY THRUST THE DAGGER INTO THE HEART OF THE
STOMACH AS IT WERE AND THE HAGGIS WILL BE SPOONED OUT AND SERVED

BUT WHILE HAGGIS COMMANDS REVERENCE AMONG SCOTS AND BURNS AFICIONADOS IT IS
FAR FROM FLAVOR OF THE MONTH AT THE US DEPARTMENT OF AGRICULTURE BECAUSE
THE GOVERNMENT RESTRICTS MEAT PRODUCTS FROM COUNTRIES WITH A RECORD OF
BOVINE SPONGIFORM ENCEPHALOPATHY OR MADCOW DISEASE IMPORTING SCOTTISH
HAGGIS IS ILLEGAL EVEN TINNED HAGGIS IS VERBOTEN IT WOULDN'T BE MUCH USE
AT A BURNS SUPPER ANYWAY YOU CAN'T STICK A DIRK SCOTTISH DAGGER THROUGH
A TIN SAYS ALAN BAIN PRESIDENT OF THE AMERICANSCOTTISH FOUNDATION

INSTEAD BURNS SUPPER ORGANIZERS IN AMERICA DEPEND ON DOMESTIC TOIL CHARLES
DAVIDSON A SCOTTISH BUTCHER WHO OWNS THE ROYAL MARKET IN KEARNY NEW
JERSEY MAKES ABOUT 1000 POUNDS OF HAGGIS FOR BURNS SUPPERS NATIONWIDE

IT TAKES THREE DAYS TO MAKE A HAGGIS ON THE FIRST DAY MR DAVIDSON COOKS
COOLS AND GRINDS THE INNARDS ON THE SECOND HE MIXES IT WITH ONIONS
OATMEAL AND SPECIAL SPICES AND THEN STUFFS THE MIXTURE INTO THE STOMACH
ON THE THIRD DAY HE BOILS THE STOMACH FOR AN HOURANDAHALF TO TWO HOURS

THERE IS ONE MAJOR DIFFERENCE BETWEEN MR DAVIDSON'S HAGGIS AND THE
OLDCOUNTRY TYPE BACK IN SCOTLAND THEY USE THE PLUCKS' THE HEART THE
LUNGS THE LIVER AND THE INTESTINES MR DAVIDSON SAYS HERE THE USDA
WON'T ALLOW YOU TO USE LUNGS I TRY TO PUT MOST OF THE OTHERS IN BUT I USE
PRIMARILY LIVER 9401240175 940124 DANISH VEHICLE REGISTRATIONS

COPENHAGEN DANISH NEWVEHICLE REGISTRATIONS ROSE 633 IN DECEMBER TO
8957 UNITS FROM 5485 UNITS IN DECEMBER 1992 ACCORDING TO DANMARKS
STATISTIK THE NATIONAL STATISTICS AGENCY 9401240174 940124 TECHNOLOGY &
MEDICINE BELL ATLANTIC SEEKS PERMISSION TO ADD SERVICES  
PROPOSED TCI ACQUISITION WOULD PROVIDE MEANS TO ENTER NEW TERRITORY 
 BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL

BELL ATLANTIC CORP ASKED THE GOVERNMENT FOR PERMISSION TO PROVIDE
LONGDISTANCE SERVICES AS PART OF ITS PROPOSED ACQUISITION OF
TELECOMMUNICATIONS INC

BELL ATLANTIC ALSO REPORTED FLAT EARNINGS FOR THE FOURTH QUARTER AND
REITERATED THAT IT WOULD NOT CUT ITS DIVIDEND AS A RESULT OF ITS PENDING TCI
TRANSACTION BELL ATLANTIC WILL PAY 118 BILLION IN STOCK FOR THE LION'S
SHARE OF THE ASSETS OF TCI AND LIBERTY MEDIA CORP BUT THE TOTAL PAYMENTS IN
STOCK COULD LATER GROW TO MORE THAN 20 BILLION INCLUDING 5 BILLION FOR
TCI'S STAKES IN CABLE PROGRAMMING CHANNELS AND UP TO 4 BILLION FOR OTHER
TCI CABLE SYSTEMS IN ADDITION BELL ATLANTIC WILL TAKE ON 96 BILLION IN
EXISTING TCILIBERTY DEBT

THE SEVEN REGIONAL BELL TELEPHONE COMPANIES CURRENTLY ARE PROHIBITED FROM
PROVIDING LONGDISTANCE SERVICES AS PART OF THE CONSENT DECREE THAT BROKE UP
THE TELEPHONE MONOPOLY A DECADE AGO

IN A WAIVER REQUEST SUBMITTED TO THE JUSTICE DEPARTMENT LATE LAST WEEK BELL
ATLANTIC SAID IT WANTS AS PART OF ITS TCI DEAL TO PROVIDE LONGDISTANCE
SERVICES OUTSIDE ITS TERRITORY AND SATELLITEBEAMED PROGRAMMING TO CUSTOMERS
NATIONWIDE UNDER THE CONSENT DECREE THE LATTER ALSO ARE CONSIDERED TO BE
LONGDISTANCE SERVICES

IN ITS FILING BELL ATLANTIC WARNED THAT THE FULL MERGER WILL NOT GO
FORWARD IF IT DOESN'T GET THE GREEN LIGHT IN TIME TO MEET THE TRANSACTION'S
SCHEDULED CLOSING DATE NOW SET FOR JAN 2 1995

HOWEVER JOHN THORNE A BELL ATLANTIC VICE PRESIDENT AND ASSOCIATE GENERAL
COUNSEL IN AN INTERVIEW ON FRIDAY SUGGESTED THE ACQUISITION CAN BE
ACCOMPLISHED WITHOUT LONGDISTANCE APPROVAL

WE WILL DO THE DEAL COME HELL OR HIGH WATER MR THORNE SAID

THE BABY BELL ALREADY IS BUSY DEVISING DETAILED ATTACK PLANS FOR INVADING
THE TELEPHONE TURFS OF ITS FORMER SIBLINGS BRIAN OLIVER PRESIDENT OF BELL
ATLANTIC ENTERPRISES BUSINESS DEVELOPMENT SAID IN COMMENTS ACCOMPANYING THE
WAIVER REQUEST THAT THE BABY BELL PLANS TO BEGIN CONSTRUCTING TELEPHONE
NETWORKS ACROSS THE COUNTRY AS SOON AS THE DEAL IS CLOSED WITH TCI THE
LARGEST US CABLE OPERATOR

WITHIN 2 1/2 YEARS MR OLIVER SAID BELL ATLANTIC EXPECTS TO BE OPERATING
FULLSERVICE NETWORKS IN COMPETITION WITH OTHER BELLS IN ABOUT 30 CITIES
OUTSIDE ITS TERRITORY BY THE END OF THE DECADE MR OLIVER SAID BELL
ATLANTIC WOULD BE PROVIDING COMPETING TELEPHONE SERVICES IN GEOGRAPHIC AREAS
WITH MORE THAN 40 MILLION PEOPLE OUTSIDE ITS CURRENT TERRITORY

MR OLIVER INDICATED BELL ATLANTIC ALREADY HAS A GAME PLAN FOR HOW TO INVADE
THE CHICAGO MARKET CURRENTLY DOMINATED BY AMERITECH CORP THE
CHICAGOBASED BABY BELL HE SAID TCI'S AFFILIATE TELEPORT HAS FACILITIES
IN THE DOWNTOWN AREA THAT COULD BE USED TO INTERCONNECT WITH TCI'S CABLE
SYSTEMS IN THE CHICAGO SUBURBS TO PROVIDE COMPETING TELEPHONE SERVICE
THROUGHOUT THE METROPOLITAN AREA

WE BELIEVE WE CAN PROVIDE CHICAGOAREA CUSTOMERS A BETTER PACKAGE OF PRICE
AND SERVICE THAN CAN AMERITECH MR OLIVER SAID

BELL ATLANTIC ALSO MADE AN 8K FILING WITH THE SECURITIES AND EXCHANGE
COMMISSION LAST WEEK IN AN EFFORT TO QUASH RUMORS ON WALL STREET THAT DROVE
ITS STOCK DOWN THE COMPANY SAID IN THE FILING THAT RUMORS THAT THE COMPANY
INTENDS TO CUT ITS DIVIDEND ARE TOTALLY FALSE BELL ATLANTIC ADDED THAT IT
IS THE COMPANY'S INTENTION THAT THE FINAL FINANCIAL TERMS OF THE
TRANSACTION WILL NOT DIFFER SIGNIFICANTLY FROM THE LETTER OF INTENT IN
COMPOSITE NEW YORK STOCK EXCHANGE TRADING BELL ATLANTIC SHARES CLOSED AT
56 DOWN 375 CENTS

EARLIER FRIDAY THE PHILADELPHIABASED REGIONAL BELL TELEPHONE COMPANY
REPORTED FOURTHQUARTER EARNINGS OF 3331 MILLION OR 76 CENTS A SHARE
COMPARED WITH 3173 MILLION OR 74 CENTS A SHARE A YEAR EARLIER REVENUE
WAS 331 BILLION UP ABOUT 1 FROM 327 BILLION A YEAR EARLIER

FOR THE YEAR BELL ATLANTIC REPORTED EARNINGS OF 14 BILLION OR 322 A
SHARE COMPARED WITH 134 BILLION OR 313 A SHARE FOR 1992 THE 1993
EARNINGS REFLECT SEVERAL ONETIME CHARGES INCLUDING A NONCASH CHARGE OF 85
MILLION OR 19 CENTS A SHARE FOR POSTEMPLOYMENT BENEFITS 9401240173
940124 CRYSTAL BRANDS FILES FOR PROTECTION UNDER CHAPTER 11  BY
MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL

CRYSTAL BRANDS INC A SPORTSWEAR COMPANY THAT HAS SEVERAL WELLKNOWN
BRANDS SAID IT FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION

THE SOUTHPORT CONN APPAREL AND COSTUME JEWELRY MAKER SAID IN A STATEMENT
FRIDAY THAT IT SOUGHT COURT PROTECTION TO RESTRUCTURE ITS INDEBTEDNESS AND
REORGANIZE ITS CAPITAL STRUCTURE IT ALSO SAID IT AGREED TO CONSIDER THE
SALE OF ITS COSTUME JEWELRY OPERATIONS ONE OF THE NATION'S DOMINANT

CRYSTAL BRANDS PRODUCES SPORTSWEAR UNDER THE GANT SALTY DOG AND IZOD BRAND
NAMES AND JEWELRY UNDER THE MONET TRIFARI AND MARVELLA NAMES TO RAISE
CASH IT HAS ALREADY SOLD ITS EVANPICONE AND LACOSTE ALLIGATOR SA
TRADEMARKS

THE BANKRUPTCYLAW FILING CAME AS NO SURPRISE TO ANALYSTS

YOU HAVE A COMPANY WITH ALL OF THESE WONDERFUL LABELS THAT WAS BADLY
MISMANAGED FOR A NUMBER OF YEARS SAID LAURENCE LEEDS JR AN ANALYST WITH
BUCKINGHAM RESEARCH INC NEW YORK NEW MANAGEMENT INHERITED ENORMOUS
DEBTS AND THE DEBT PAYMENTS WERE SO LARGE THAT CONDUCTING A VIABLE BUSINESS
WAS ALL BUT IMPOSSIBLE

IN A PREPARED STATEMENT THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER
CHARLES CAMPBELL CHARACTERIZED THE FILING AS THE FINAL STEP TOWARDS
BEGINNING THE PROCESS OF RETURNING THE COMPANY TO A STATE OF HEALTH

COMPANY EXECUTIVES COULDN'T BE REACHED FOR FURTHER COMMENT OVER THE WEEKEND

THE COMPANY RESTRUCTURED 419 MILLION IN DEBT ABOUT A YEAR AGO AN
ARRANGEMENT THAT WAS INTENDED TO REMAIN IN EFFECT THROUGH 1995 IN JULY IT
BROUGHT IN MR CAMPBELL WHO HELPED BRING MUNSINGWEAR INC OUT OF
BANKRUPTCYLAW PROCEEDINGS AS CHAIRMAN AND CHIEF EXECUTIVE

NOW IT'S ANYONE'S GUESS WHAT HAPPENS SAID MR LEEDS THE TRADEMARKS ARE
STILL VERY VIABLE BUT IF THEY SELL OFF THE COSTUME JEWELRY BUSINESS IT
WOULD BE A VERY SMALL COMPANY

THE COMPANY ALSO ANNOUNCED THAT IT HAD RECEIVED A COMMITMENT FROM CITICORP
FOR A 75 MILLION DEBTORINPOSSESSION CREDIT FACILITY SUBJECT TO
BANKRUPTCY COURT APPROVAL WHICH WOULD PROVIDE THE COMPANY WITH WORKING
CAPITAL

WITH OUR DIP FINANCING IN PLACE SAID MR CAMPBELL I FORESEE NO
INTERRUPTION OF PRODUCT FLOW AND THE DELIVERY TO OUR CUSTOMERS OF THE
QUALITY MERCHANDISE THEY HAVE COME TO EXPECT OF CRYSTAL BRANDS
9401240172 940124 WHO'S NEWS RJR NABISCO HOLDINGS CORP

RJR NABISCO HOLDINGS CORP NEW YORK GEN JOHN T CHAIN JR 59 YEARS
OLD WAS ELECTED A DIRECTOR OF THIS TOBACCO AND FOOD CONCERN INCREASING THE
BOARD TO 16 MEMBERS GEN CHAIN AN EXECUTIVE VICE PRESIDENT OF BURLINGTON
NORTHERN RAILROAD IS A FORMER COMMANDER IN CHIEF OF THE STRATEGIC AIR
COMMAND 9401240171 940124 WHO'S NEWS GRAND CASINOS INC

GRAND CASINOS INC MINNEAPOLIS TIMOTHY J COPE 42YEAROLD VICE
PRESIDENT FINANCE WAS NAMED CHIEF FINANCIAL OFFICER OF THIS DEVELOPER AND
MANAGER OF CASINO GAMING FACILITIES SUCCEEDING JAMES L WHITE WHO QUIT IN
NOVEMBER 9401240170 940124 FINANCING BUSINESS AMERICAN TELECASTING
INC

AMERICAN TELECASTING INC COLORADO SPRINGS COLO SAID ITS SERIES A
CONVERTIBLE PREFERRED STOCK WAS CONVERTED INTO COMMON STOCK A WEEK AGO
ABOUT TWO MILLION SHARES WERE CONVERTED ON A 1FOR1 BASIS THE OPERATOR OF
WIRELESS CABLETV SYSTEMS SAID 9401240169 940124 ABREAST OF THE MARKET 
CLINTON SCORES POINTS WITH SOME WALL STREET WATCHERS  BY STEVEN E
LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL

CAN STOCK MARKET INVESTORS LEARN TO LOVE A LIBERAL DEMOCRAT

AS PRESIDENT CLINTON BEGINS HIS SECOND YEAR IN OFFICE THE DOW JONES
INDUSTRIAL AVERAGE CONTINUES TO HIT ONE RECORD AFTER ANOTHER INDEED THE
INDEX CLOSED ABOVE THE 3900 LEVEL FRIDAY FOR THE FIRST TIME EVER

AND THAT STRONG PERFORMANCE COMES ON THE HEELS OF 195 GAIN DURING MR
CLINTON'S FIRST YEAR IN THE WHITE HOUSE AT THE SAME TIME THE BOND MARKET
UNDERWENT A PHENOMENAL RALLY LAST YEAR PROVIDING A SOLID FOUNDATION FOR THE
STOCK MARKET'S GAINS

SOME ANALYSTS FIGURE THE VIGOROUS YOUNG PRESIDENT DESERVES KUDOS FROM
INVESTORS YOU CAN'T HELP BUT GIVE CLINTON SOME OF THE CREDIT FOR THE
FINANCIAL MARKETS' PERFORMANCE SAYS ANDREW G SCHWARTZ POLITICAL ANALYST
AT COUNTY NATWEST/WASHINGTON ANALYSIS IN WASHINGTON HE WAS IN LARGE PART
RESPONSIBLE FOR THE MOOD OF THE MARKETS

BUT OTHERS ARGUE THAT IT ISN'T THAT SIMPLE WHILE MR CLINTON'S POLICIES
HAVE BEEN MORE BENEVOLENT THAN AT FIRST EXPECTED THESE CRITICS SAY THE
RESULTS TO DATE ARE DUE MORE TO LUCKY TIMING THAN TO ANY CLINTON
ADMINISTRATION INITIATIVES

CLEARLY CLINTON WAS POSITIONED VERY WELL WITH THE ECONOMY IMPROVING AT THE
END OF PRESIDENT BUSH'S TERM SAYS RYAN KRUEGER POLITICAL ANALYST AT
NOMURA RESEARCH INSTITUTE AND SO FAR HE HASN'T DONE ANYTHING TO HARM THE
ECONOMY

TO HIS FANS MR CLINTON HAS DONE A MASTERFUL JOB OF WINNING THE HEARTS AND
WALLETS OF WALL STREET THEY CREDIT HIM WITH LAYING THE FOUNDATION IN HIS
FIRST YEAR FOR A CONTINUED IMPROVEMENT IN THE ECONOMY AND A FURTHER RISE IN
STOCK PRICES JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL &
CO ARGUES THAT MR CLINTON HAS MATURED AS PRESIDENT RECOGNIZING THE NEED
TO COMPROMISE ON HIS MAJOR POLICY INITIATIVES

EVEN MR CLINTON'S MUCHMALIGNED TAX INCREASES WILL HAVE ONLY A LIMITED
IMPACT ON THE OVERALL ECONOMY BECAUSE THEY TARGET HIGHERINCOME INDIVIDUALS
MR BATTIPAGLIA CONTENDS AND HE ADDS THE BUDGET ENACTED LAST YEAR WILL
LIKELY SHOW BETTERTHANEXPECTED RESULTS IN DEFICIT REDUCTION

A LOT OF POSITIVE THINGS WILL SHOW UP AS A RESULT OF HIS FIRST YEAR MR
BATTIPAGLIA SAYS THE US ECONOMY WILL CONTINUE TO EXPAND AT AN
ABOVEAVERAGE RATE COMPARED WITH THE LAST FEW YEARS AND THE US EXPORT
POSITION WILL IMPROVE

MR BATTIPAGLIA SAYS HE WOULDN'T BE SURPRISED TO SEE A 10 TO 13 GAIN IN
STOCK PRICES THIS YEAR AIDED BY STABLE INTEREST RATES INDIVIDUAL INVESTORS
ARE LIKELY TO CONTINUE POURING MONEY INTO THE MARKET HE SAYS ADDING THAT
THESE INVESTORS' HOLDINGS OF STOCKS ARE STILL FAR BELOW RECORD LEVELS
RELATIVE TO THEIR TOTAL ASSETS

THOMAS D GALLAGHER POLITICAL ANALYST AT SHEARSON LEHMAN IN WASHINGTON IS
LESS ENTHUSIASTIC HE GIVES PRESIDENT CLINTON CREDIT FOR HELPING SPARK THE
BOND MARKET RALLY BY FOCUSING ON DEFICIT REDUCTION BUT HE IS QUICK TO POINT
OUT THAT THE LOW INFLATION ENVIRONMENT THAT GREETED THE CLINTON
ADMINISTRATION AND THAT HAS CONTINUED THROUGH ITS FIRST YEAR ALSO PLAYED A
KEY ROLE

CREDIBLE DEFICIT REDUCTION ALONG WITH DISINFLATION FUELED THE BOND MARKET
RALLY MR GALLAGHER SAYS

HE IS RELUCTANT TO ASCRIBE THE STOCK MARKET'S OVERALL STRENGTH TO CLINTON
POLICIES AND HE BLAMES THE PRESIDENT FOR SOME OF THE MARKET'S MORE NOTABLE
DISASTERS LAST YEAR ASK ANYONE WHO HELD TOBACCO OR DRUG STOCKS AND THEY'LL
TELL YOU THERE WAS A BIG IMPACT THERE MR GALLAGHER SAYS

SOME ANALYSTS BELIEVE THE INTENSE FOCUS ON THE ADMINISTRATION'S POLICIES
WILL RELAX SOME THIS YEAR PROVIDING A FAVORABLE ENVIRONMENT FOR THE OVERALL
MARKET AND FOR SOME OF THE BELEAGUERED STOCK SECTORS FOR INSTANCE HEALTH
CARE THE BUDGET AND THE NORTH AMERICAN FREE TRADE AGREEMENT ALL CAME UNDER
INTENSE SCRUTINY LAST YEAR

WE PAID A LOT OF ATTENTION TO ALL THOSE THINGS THEY WERE THE BIG
QUESTION MARKS OF 1993 SAYS MR SCHWARTZ OF COUNTY NATWEST/WASHINGTON
ANALYSIS A LOT OF THOSE ARE NOW LOCKED INTO PLACE

EVEN THOUGH THE HEALTHCARE PLAN IS YET TO BE WORKED OUT STOCKS IN THE
HEALTHCARE AND DRUG GROUPS ARE LIKELY TO REBOUND AFTER LAST YEAR'S
BATTERING SAYS GRUNTAL'S MR BATTIPAGLIA THOSE STOCKS WILL BE HELPED BY
MR CLINTON'S APPARENT WILLINGNESS TO COMPROMISE ON HEALTH CARE AND BY THE
PERCEPTION THAT THE WORST NEWS IS ALREADY OUT ABOUT THE REFORM PLAN

THE DRUGS MAY SWING BACK INTO VOGUE AS PEOPLE REALIZE THE HEALTHCARE PLAN
IS NOT AS BAD AS THEY THOUGHT MR BATTIPAGLIA SAYS

OTHER STOCK GROUPS THAT MAY COME INTO THE SPOTLIGHT THIS YEAR BECAUSE OF
CLINTON POLICIES ARE TELECOMMUNICATIONS AND THE ENVIRONMENT BUT THE
IMPLICATIONS FOR THESE INDUSTRIES ARE FAR FROM CLEAR YET MR BATTIPAGLIA
EXPECTS TO SEE A FLURRY OF MERGER AND TAKEOVER ACTIVITY IN THE
TELECOMMUNICATIONS ARENA AS THE WHITE HOUSE WORKS TO DEREGULATE THE
INDUSTRY THE MOVES WILL BE NECESSARY AS CABLE TELEPHONE BROADCAST AND
SATELLITE COMPANIES ARE ALLOWED TO ENTER EACH OTHER'S BUSINESSES

ON BALANCE THE TREND HAS POSITIVE IMPLICATIONS MR BATTIPAGLIA SAYS

THE ADMINISTRATION'S EFFORT TO IMPROVE THE ENVIRONMENT MAY PROVE TROUBLESOME
FOR SOME NATURAL RESOURCES COMPANIES MR BATTIPAGLIA ARGUES THAT
ENVIRONMENTAL REGULATION IS PUSHING MORE AND MORE BUSINESS OVERSEAS WE'RE
MOVING TOWARD A CLEAN CONTINENT WHICH MEANS WE'RE PUSHING OUT OF THE
COUNTRY ANYTHING DIRTY HE SAYS THE NATURAL RESOURCE INDUSTRY IS
SUFFERING BECAUSE OF THIS TREND

IF PREDICTING THE STOCK MARKET'S DIRECTION DURING MR CLINTON'S SECOND YEAR
SEEMS DICEY THEN PERHAPS HISTORICAL PATTERNS WILL OFFER SOME INSIGHT
LEHMAN BROTHERS' MR GALLAGHER STUDIED THE STOCK MARKET'S PERFORMANCE IN THE
SECOND YEAR OF PRESIDENTIAL TERMS GOING BACK AS FAR AS THE TRUMAN
ADMINISTRATION HIS FINDINGS DON'T BODE WELL FOR 1994

THERE IS A HISTORICAL PATTERN THAT SAYS THE SECOND YEAR IS OFTEN WEAK
ESPECIALLY FOR DEMOCRATS MR GALLAGHER SAYS

THE DOW JONES INDUSTRIAL AVERAGE SURGED TO ANOTHER RECORD PUSHING ABOVE THE
3900 LEVEL

THE DOW INDUSTRIALS ROSE 2252 POINTS TO 391448 ITS NINTH RECORD THIS
YEAR STANDARD & POOR'S 500STOCK INDEX SLIPPED 026 TO 47472 AND THE NEW
YORK STOCK EXCHANGE COMPOSITE INDEX EASED 011 TO 26312 THE NASDAQ
COMPOSITE INDEX CLIMBED 125 TO A RECORD 79428 THE AMERICAN STOCK EXCHANGE
MARKET VALUE INDEX FELL 007 TO 48474

VOLUME ON THE BIG BOARD SURGED TO 3436 MILLION SHARES FROM 3104 MILLION
THURSDAY DESPITE THE DOW'S CLIMB DECLINING ISSUES OUTNUMBERED ADVANCERS
1086 TO 980

FOR THE WEEK THE DOW INDUSTRIALS GAINED 47 POINTS OR 12 S&P 500 LOST
019 POINT AND THE BIG BOARD COMPOSITE ROSE 022 POINT

WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD
STOCK INDEX GAINED 018 TO 11456

STOCK PRICES SHOT HIGHER LATE IN THE DAY BECAUSE OF TRADERS MAKING
ADJUSTMENTS RELATED TO THE EXPIRATION OF MONTHLY OPTIONS CONTRACTS

TECHNOLOGY ISSUES WERE MIXED APPLE COMPUTER JUMPED 3 1/2 TO 33 3/8 SG
WARBURG MERRILL LYNCH SMITH BARNEY SHEARSON AND COWEN UPGRADED THEIR
INVESTMENT RATINGS ON APPLE ON THURSDAY THE COMPANY REPORTED FIRSTQUARTER
EARNINGS OF 34 CENTS A SHARE JUST ABOVE ANALYSTS' FORECASTS OF 33 CENTS A
SHARE

INTEL ROSE 1 3/8 TO 65 1/8 MICROSOFT WAS UNCHANGED AT 86 1/4 NOVELL ALSO
WAS UNCHANGED AT 22 7/8 SUN MICROSYSTEMS LOST 1 5/8 TO 26 COMPUTER
ASSOCIATES INTERNATIONAL LOST 3 TO 38

BANDAG A MAKER OF MATERIALS THAT RETREAD TRUCK AND BUS TIRES LOST 3 TO 59
3/4 THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 84 CENTS A SHARE BELOW
ANALYSTS' ESTIMATE OF 87 CENTS

SILICON GRAPHICS CLIMBED 1 3/4 TO 24 7/8 ON THURSDAY THE COMPANY REPORTED
SECONDQUARTER EARNINGS OF 24 CENTS A SHARE ABOVE ANALYSTS' ESTIMATES OF 20
CENTS 9401240168 940124 WHO'S NEWS NATIONAL WESTMINSTER PLC

NATIONAL WESTMINSTER PLC LONDON KRISTIN W DAVIS 49 YEARS OLD WAS
NAMED A SENIOR VICE PRESIDENT AT THE NATIONAL WESTMINSTER BANCORP UNIT OF
THIS BANK HOLDING COMPANY IN THIS NEWLY CREATED POSITION MS DAVIS
PREVIOUSLY RISK MANAGER AT CARTERET SAVINGS BANK IN PARSIPPANY NJ WILL
BE RESPONSIBLE FOR THE COMPANY'S RISKMANAGEMENT DIVISION 9401240167
940124 TECHNOLOGY & MEDICINE CYRIX PREVAILS IN EARLY ROUND OF INTEL
DISPUTE  BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET
JOURNAL

RICHARDSON TEXAS CYRIX CORP WON THE FIRST ROUND IN YET ANOTHER LEGAL
BATTLE WITH RIVAL INTEL CORP OVER ITS RIGHT TO SELL COMPUTER CHIPS THAT ARE
CLONES OF INTEL'S

A FEDERAL JUDGE IN SHERMAN TEXAS RULED ON ONE OF THREE ISSUES IN A COMPLEX
SUIT FILED IN 1991 BY CYRIX IN A DEBATE CONCERNING PATENTS HELD BY INTEL IN
THE RULING THE JUDGE SAID THAT INTEL MAY NOT COLLECT ROYALTIES FROM CYRIX
CUSTOMERS WHO BOUGHT CLONES OF INTEL'S 386 AND 486 CHIPS THAT WERE
MANUFACTURED BY CYRIX'S PRIMARY SUBCONTRACTOR THAT SUBCONTRACTOR IS
LICENSED BY INTEL AND THE JUDGE SAID RIGHTS UNDER THE LICENSE IN EFFECT
PASS THROUGH BOTH TO CYRIX AND ITS CUSTOMERS

THE MICROPROCESSORS ACT AS THE BRAINS OF MANY PERSONAL COMPUTERS AND INTEL
SANTA CLARA CALIF DOMINATES THE PCCHIP BUSINESS ITS 1993 SALES WERE
88 BILLION MORE THAN 85 TIMES THOSE OF CYRIX

INTEL INTENDS TO APPEAL THE RULING SAID THOMAS DUNLAP INTEL'S GENERAL
COUNSEL THIS IS A LEGAL LOSS BUT IT DOESN'T CHANGE ANYTHING FROM A
BUSINESS STANDPOINT FOR INTEL IT'S PART OF AN ONGOING ATTEMPT TO GIVE A
RETURN TO OUR SHAREHOLDERS WHEN THE GOVERNMENT GIVES US A PATENT RIGHT
INTEL HAS USED THE LEGAL SYSTEM AGGRESSIVELY TO PROTECT SUCH RIGHTS MOST
FREQUENTLY CLASHING WITH ADVANCED MICRO DEVICES INC ANOTHER SILICON VALLEY
CHIP MAKER

A CYRIX NEWS RELEASE REFERRED TO INTEL'S SYSTEMATIC CAMPAIGN OF
INTIMIDATION AND HARASSMENT OF CYRIX CUSTOMERS DEMANDING THEY EITHER USE
INTEL MICROPROCESSORS  OR PAY INTEL AN EXORBITANT ROYALTY JERRY
ROGERS CYRIX PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HIS CUSTOMERS
RESENT INTEL'S MONOPOLISTIC BEHAVIOR

TODAY THE JUDGE IS TO BEGIN CONSIDERING OTHER ASPECTS OF THE SUIT INCLUDING
THE VALIDITY OF THE PATENT IN QUESTION AND WHETHER A ROYALTY SHOULD APPLY TO
CHIPS MADE BY NONLICENSED CYRIX CONTRACTORS 9401240166 940124 WHO'S NEWS
 NEWS CORP

NEWS CORP SYDNEY AUSTRALIA KELVIN MACKENZIE 47 YEARS OLD WAS NAMED
MANAGING DIRECTOR OF THIS MEDIA CONCERN'S BRITISH SKY BROADCASTING SATELLITE
UNIT MR MACKENZIE FORMERLY EDITOR OF THE SUN NEWSPAPER IN LONDON WILL BE
SUCCEEDED BY STUART HIGGINS 37 FORMERLY DEPUTY EDITOR OF THE SUN
9401240165 940124 BANGKOK MARKET FOR PROPERTY SHOWS REBOUND  
REAL ESTATE SEEMED HEADED FOR SLUMP BUT STOCKS SOARED ENDING GLOOM 
 BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL

BANGKOK THE BANGKOK PROPERTY MARKET APPEARS TO BE ON THE MEND
CONFOUNDING LAST YEAR'S GLOOMY PREDICTIONS

AFTER A STEEP FALL IN 1992 AND EARLY 1993 OFFICE RENTS STABILIZED IN THE
FOURTH QUARTER AS COMPANIES MOVED TO ROOMIER QUARTERS AND CONSTRUCTION
SLOWED THE HOUSING MARKET ALSO LOOKS HEALTHIER SALES OF RESIDENTIAL
PROPERTY PARTICULARLY SMALL CENTRAL APARTMENTS JUMPED IN THE QUARTER

JUST SIX MONTHS AGO THE BANGKOK REALESTATE MARKET APPEARED HEADED FOR A
SUSTAINED SLUMP THE RAPID TURNAROUND IN SENTIMENT PARTLY REFLECTS THE STOCK
MARKET'S SURGE LATE LAST YEAR SOARING STOCKS BOLSTERED CONFIDENCE AND GAVE
INVESTORS WINDFALLS TO INVEST IN REAL ESTATE LOWER INTEREST RATES AND
RISING DEMAND FOR CITYCENTER APARTMENTS AND OFFICES FROM PEOPLE FRUSTRATED
BY CHRONIC TRAFFIC JAMS ALSO BOLSTERED THE MARKET

THE PROPERTY MARKET MOVES INTO THE NEW YEAR IN REASONABLY HEALTHY SHAPE
SAYS MICHAEL POOLE GENERAL MANAGER OF CHESTERTON THAI PROPERTY CONSULTANTS
LTD A BRITISH REALESTATE SALES AND MANAGEMENT CONCERN HE THINKS RENTS IN
PRIME BUILDINGS WILL BE STEADY TO SLIGHTLY HIGHER THIS YEAR

ADISORN THANANANNARAPOOL EXECUTIVE VICE PRESIDENT OF LAND & HOUSES PCL A
PROPERTYDEVELOPMENT CONCERN SAYS SALES OF RESIDENTIAL PROPERTY WERE
STRONGER THAN WE EXPECTED IN THE LAST QUARTER AND STRONGER DEMAND ABSORBED
SOME OF THE OVERSUPPLY IN THE MARKET

BUT NOT EVERY SECTOR IMPROVED A GLUT OF LUXURYHOTEL SPACE PERSISTS AND
WORSENING TRAFFIC JAMS HURT DEMAND FOR SOME OUTOFTHEWAY LOCATIONS
MOREOVER ANALYSTS WARN THAT DEVELOPERS SHOULDN'T COUNT ON PRICES RISING
MUCH IN THE NEAR FUTURE BECAUSE NEW OFFICE AND RESIDENTIAL PROPERTY
CONTINUES TO ENTER THE MARKET

A YEAR AGO THE OFFICE OCCUPANCY RATE IN BANGKOK WAS ABOUT 89 BUT WITH A
SPATE OF NEW BUILDINGS NEARING COMPLETION PROPERTY VALUERS AT AMERICAN
APPRAISAL THAILAND LTD PREDICTED LAST YEAR THAT OCCUPANCY WOULD PLUNGE TO
58 BY THE END OF 1993 SOME ECONOMISTS WARNED THAT THE MARKET WOULD
COLLAPSE AS IT DID IN THE MID1980S BUT THE WARNINGS PROMPTED DEVELOPERS
TO DELAY SOME PROJECTS AND SCRAP OTHERS NOW AMERICAN APPRAISAL SAYS
OCCUPANCY IS ABOUT 88 OR 30 PERCENTAGE POINTS HIGHER THAN IT EXPECTED A
YEAR AGO EVEN SO THE FIRM FORECASTS OCCUPANCY WILL FALL TO 65 BY YEAR
END

SOME OTHER ANALYSTS THINK THAT FORECAST IS FAR TOO LOW NIGEL CORNICK
MANAGING DIRECTOR OF COLLIERS JARDINE THAILAND LTD SAYS OCCUPANCY IS
LIKELY TO BOTTOM OUT AT AROUND 83 IN MID1994

RODOLFO L VERGARA MANAGING DIRECTOR OF AMERICAN APPRAISAL THAILAND
ACKNOWLEDGES HE MIGHT HAVE TO REVISE HIS NUMBERS IF DEMAND CONTINUES TO
GROW THINGS ARE DEFINITELY LOOKING BETTER THAN THEY DID A YEAR AGO HE
SAYS ONE REASON IS THAT MANY COMPANIES ARE DITCHING CRAMPED OFFICES FOR
SPACIOUS NEW ONES

LOWER PRICES HAVE ENTICED RENTERS AS WELL EVEN WITH THE SLOWDOWN IN
CONSTRUCTION DEVELOPERS COULDN'T SUSTAIN THE 1992 RENTS OF AS MUCH AS 24 A
SQUARE METER FOR PRIME LOCATIONS NOW MOST BUILDINGS IN THE CENTRAL
BUSINESS DISTRICT ARE RENTING SPACE AT ABOUT 18 A SQUARE METER HIGH ENOUGH
FOR MOST OF THEM TO BREAK EVEN

BUT SUCH PRICES ARE WISHFUL THINKING IN OTHER AREAS SUCH AS ASOKE AVENUE
WHICH SPORTS EIGHT NEW OFFICE TOWERS THE AVENUE JUST TWO KILOMETERS FROM
SOME OF BANGKOK'S MOST EXPENSIVE REAL ESTATE IS SO CLOGGED BY TRAFFIC THAT
IT MAY BE IMPOSSIBLE TO FIND TENANTS FOR ALL THE NEW SPACE LANDLORDS IN
SOME OF THE BEST NEW BUILDINGS ON ASOKE AVENUE ARE ASKING 14 A SQUARE
METER BUT THEY ARE GIVING DISCOUNTS AND THROWING IN THREE MONTHS OF FREE
RENT ON TWOYEAR LEASES

RENTS ARE LEVELING OFF BUT MORE THAN EVER BEFORE LOCATION IS THE MOST
IMPORTANT THING MR VERGARA SAYS

IN MANY CASES THE DECLINES IN RENT HAVE BROUGHT PRICES BACK TO MORE
REASONABLE LEVELS AFTER A PERIOD IN 1991 AND 1992 WHEN HIGH OCCUPANCY RATES
PUSHED PRICES THROUGH THE ROOF IN EARLY 1992 SOME OF BANGKOK'S SHODDIER
BUILDINGS COMMANDED RENTS OF 26 A SQUARE METER

IN 1988 WHEN MANY OF TODAY'S NEW BUILDINGS FIRST WERE PLANNED RENTS
AVERAGED ONLY ABOUT 4 A SQUARE METER

IN RESIDENTIAL PROPERTY SALES IN BANGKOK IN THE SECOND HALF OF 1993 WERE
30 ABOVE THE PREVIOUS SIX MONTHS AND THE YEAREARLIER PERIOD ACCORDING TO
SOMCHAI PHAKAPHAVIVAT ADVISER TO THE HOUSE OF REPRESENTATIVES ECONOMIC
AFFAIRS COMMITTEE HE SAYS MOST OF THE INCREASE CAME IN THE FOURTH QUARTER
AS A 50 RISE IN THE STOCK MARKET FUELED OPTIMISM 9401240164 940124 WHO'S
NEWS CANSTAR SPORTS INC

CANSTAR SPORTS INC MONTREAL DONALD C MACMARTIN RESIGNED AS PRESIDENT
CHIEF OPERATING OFFICER AND A DIRECTOR TO PURSUE OTHER CAREER INTERESTS
THE COMPANY SAID THE MAKER OF HOCKEY EQUIPMENT SAID ITS EXECUTIVE COMMITTEE
AND GERALD WASSERMAN VICE CHAIRMAN WILL ASSUME MR MACMARTIN'S DAILY
RESPONSIBILITIES UNTIL A REPLACEMENT IS NAMED 9401240163 940124
TECHNOLOGY COMPAQ EXPANDS SCOTTISH PLANT

HOUSTON COMPAQ COMPUTER CORP SAID IT PLANS TO EXPAND ITS MANUFACTURING
OPERATION IN SCOTLAND TO HELP MEET INCREASING DEMAND FOR THE
PERSONALCOMPUTER MAKER'S PRODUCTS IN EUROPE

THE 105 MILLION EXPANSION IS SCHEDULED TO BE COMPLETED IN THE
THIRDQUARTER AND WILL INCLUDE THE OPENING OF TWO MANUFACTURING LINES FOR
PRINTED CIRCUIT BOARDS 9401240162 940124 WHO'S NEWS INTERWEST SAVINGS
BANK

INTERWEST SAVINGS BANK OAK HARBOR WASH CLARK H MOCK WAS NAMED A
DIRECTOR OF THIS BANK SUCCEEDING HERBERT C PICARD WHO RETIRED MR MOCK
RECENTLY RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER AT
SEATTLEFIRST NATIONAL BANK A UNIT OF BANKAMERICA CORP MR PICARD A
FOUNDER OF INTERWEST IS FORMER OWNER AND OPERATOR OF PRAIRIE CENTER A
MERCHANDISE AND LUMBERRETAILING CONCERN 9401240161 940124 WHO'S NEWS 
APPLIED LASER SYSTEMS

APPLIED LASER SYSTEMS GRANTS PASS ORE JACK NELSON WAS NAMED A
DIRECTOR OF THIS MAKER OF SEMICONDUCTORBASED LASER PRODUCTS FILLING A
VACANCY ON THE BOARD WHICH HAS FIVE MEMBERS MR NELSON 41 YEARS OLD IS
CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ADVANCED NMR SYSTEMS AND CHAIRMAN
AND TREASURER OF ADVANCED MAMMOGRAPHY SYSTEMS 9401240160 940124 HYUNDAI
PRICES 1995 SONATA

FOUNTAIN VALLEY CALIF HYUNDAI MOTOR AMERICA THE US SALES ARM OF
SOUTH KOREA'S HYUNDAI MOTOR CO SAID ITS 1995 SONATA MIDSIZE SEDAN IS
PRICED AT 13299 IT WILL GO ON SALE NEXT MONTH 9401240159 940124
CONTINENTAL TO CUT FLIGHTS BY 23 AT ITS DENVER HUB  BY BRIDGET
O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL

CONTINENTAL AIRLINES SAID IT PLANS TO CUT FLIGHTS AT ITS DENVER HUB BY 23
ANOTHER STEP IN WHAT APPEARS TO BE A COMPANYWIDE ROUTE RESTRUCTURING

THE CARRIER BASED IN HOUSTON SAID IT WOULD REDUCE DAILY JET DEPARTURES
FROM ITS THIRDLARGEST HUB TO 107 FROM 139 EFFECTIVE MARCH 9 AT THE SAME
TIME IT WILL CUT SERVICE FROM DENVER TO SIX CITIES AND ELIMINATE 300
POSITIONS

AS CONTINENTAL REDUCES ITS DENVER FLIGHTS IT WILL BOOST SERVICE TO OTHER
PARTS OF ITS SYSTEM PARTICULARLY THE NEW CALITE SERVICE THAT OPERATES
SHORTHAUL LOWFARE FLIGHTS PRIMARILY IN THE SOUTHEAST WHILE THE COMPANY
WON'T PROVIDE DETAILS PEOPLE FAMILIAR WITH ITS PLANS SAY CONTINENTAL WILL
MORE THAN DOUBLE ITS CALITE OPERATION IN MARCH ALSO ACCORDING TO PUBLISHED
REPORTS IT WILL BOOST ITS DEPARTURES FROM ITS CLEVELAND HUB BY 43 A
COMPANY SPOKESMAN WOULDN'T COMMENT

ALL THIS IS PART OF A MOVE BY CONTINENTAL TO REMAKE ITSELF FROM THE
DEBTLADEN UNPROFITABLE GIANT THAT LANDED IN BANKRUPTCY COURT IN 1990 TO A
NIMBLER AIRLINE WITH FLIGHTS THAT DON'T COMPETE HEADON WITH ITS BIG RIVALS
SINCE EMERGING FROM CHAPTER 11 PROTECTION LAST APRIL CONTINENTAL HAS
SCRAPPED ITS FLIGHTS TO AUSTRALIA AND NEW ZEALAND AND REDEPLOYED THOSE
PLANES ON TRANSCONTINENTAL FLIGHTS LAST FALL IT INAUGURATED CALITE THE
FIRST LARGE AIRLINE TO ATTEMPT A SHORTHAUL ALTERNATIVE PREVIOUSLY IT WAS
THE FIRST US AIRLINE TO ELIMINATE FIRST CLASS ON INTERNATIONAL ROUTES AND
CONCENTRATE ON SELLING ONLY BUSINESS CLASS SEATS

THE DENVER ACTIONS ARE YET ANOTHER STEP IN THIS MOVE TO LEANER OPERATIONS
DENVER IS UNPROFITABLE FOR CONTINENTAL BECAUSE IT'S THE ONLY HUB WHERE THE
AIRLINE COMPETES HEADON WITH ANOTHER CARRIER UAL CORP'S UNITED
AIRLINES IN ADDITION CONTINENTAL'S COSTS ARE LIKELY TO INCREASE IN DENVER
AFTER THAT CITY'S STAPLETON AIRPORT CLOSES THIS YEAR AND FLIGHT OPERATIONS
MOVE TO THE NEW DENVER INTERNATIONAL AIRPORT WHICH HAS MUCH HIGHER LANDING
COSTS

WHILE CONTINENTAL'S ROUTE RESTRUCTURING COINCIDES WITH THE PROJECTED MOVE TO
THE NEW DENVER AIRPORT CONTINENTAL SAID THE HIGHER OPERATING COSTS THERE
AREN'T THE PRIMARY REASON IT IS CUTTING FLIGHTS THE COMPANY SAID IT WILL
CONTINUE TO REEXAMINE ITS DENVER OPERATIONS TO DETERMINE ITS PROPER SCOPE

CONTINENTAL WILL SUSPEND SERVICE FROM DENVER TO BOZEMAN MONT MISSOULA
MONT ONTARIO CALIF SAN ANTONIO TEX TUCSON ARIZ AND TULSA OKLA
9401240158 940124 INDUSTRY FOCUS CANADA'S TWO KEY FREIGHT RAILROADS
MULL MERGER PLAN  CANADIAN PACIFIC CANADIAN NATIONAL RAILWAYS BOTH
SEEK TO DOWNSIZE  BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE
WALL STREET JOURNAL

MONTREAL CANADA'S RAILROADS LONG A UNIFYING SYMBOL FOR THE FARFLUNG
NATION ARE ABOUT TO BECOME A SYMBOL OF A NEW TREND DOWNSIZING

CANADIAN PACIFIC LTD AND GOVERNMENTOWNED CANADIAN NATIONAL RAILWAYS ARE
EXPECTED TO FORGE IN COMING WEEKS A TENTATIVE PROPOSAL TO MERGE RAIL
OPERATIONS ACROSS EASTERN AND CENTRAL CANADA AND POSSIBLY IN THE US

THE TWO MAJOR CANADIAN FREIGHT RAILROADS HAVE SUFFERED HEAVY LOSSES ON THEIR
EASTERN OPERATIONS IN RECENT YEARS BOTH SAY THEY MUST SHED THOUSANDS OF
MILES OF UNDERUSED TRACKS TO REMAIN VIABLE AFTER A YEAR OF TALKS BETWEEN
THE COMPANIES THEIR CHIEF EXECUTIVES ARE SIGNALING THAT THEY'D LIKE TO SET
UP A JOINTLY HELD COMPANY EAST OF WINNIPEG MANITOBA

SUCH A PROPOSAL REQUIRES GOVERNMENT APPROVAL CRITICS WILL CHARGE THE
RAILROADS WITH TRYING TO ESTABLISH A MONOPOLY

WHATEVER THE OUTCOME THE INDUSTRY HAS REACHED A TURNING POINT IN ITS
HISTORY ONE INTERLACED WITH THE NATION'S OWN

THE CANADIAN PACIFIC RAILWAY WAS ETCHED ACROSS THE WESTERN PRAIRIES AND THE
ROCKY MOUNTAINS IN THE LATE 19TH CENTURY TO TIE BRITISH COLUMBIA TO THE REST
OF THE COUNTRY CANADIAN NATIONAL WAS FORMED AFTER WORLD WAR I TO TAKE OVER
SEVERAL BANKRUPT RAILROADS THE RESULT OF YEARS OF SPECULATIVE RAILWAY
BUILDING

AS IN THE US THE RAILROADS EVENTUALLY RAN INTO STIFF COMPETITION FROM
TRUCKERS PARTICULARLY FOR SHIPMENTS OF MANUFACTURED GOODS BUT WHILE US
RAILROADS CAPITALIZED ON TRANSPORTATION DEREGULATION IN 1980 TO DRAMATICALLY
IMPROVE OPERATING PERFORMANCE IN THE PAST FEW YEARS CANADA'S RAILROADS
FAILED TO KEEP PACE

A 1987 CHANGE IN CANADIAN REGULATIONS STRENGTHENED SHIPPERS' ABILITY TO
BARGAIN OVER RATES PRESSURING RAILWAYS' REVENUES AND THE ECONOMIC SLUMP OF
THE EARLY 1990S DEPRESSED BUSINESS DRIVING BOTH OF THE BIG FREIGHT CARRIERS
INTO THE RED AND UNDERSCORING THE NEED TO DOWNSIZE

CANADIAN NATIONAL FOR EXAMPLE CARRIES 92 OF ITS TOTAL VOLUME OF TRAFFIC
ON ONLY 39 OF ITS TRACK PAUL TELLIER PRESIDENT AND CHIEF EXECUTIVE
OFFICER SAYS THE RAILWAY WANTS TO SHED ABOUT 20 OF ITS EASTERN AND CENTRAL
NETWORK BY 1995 AND SELL ANOTHER THIRD TO SHORTLINE OPERATORS A FORM OF
LOWCOST FEEDER RAILWAY THAT IS COMMON IN THE US BUT JUST CATCHING ON IN
CANADA

CANADIAN PACIFIC'S RAIL ARM CP RAIL SYSTEM IN 1992 RANKED THIRD AMONG
NORTH AMERICAN RAILROADS IN MILES OF TRACK BUT SEVENTH IN REVENUETON MILES
A MEASURE OF FREIGHT HAULED

CANADIAN REGULATIONS DESIGNED TO PRESERVE RAIL SERVICES HAVE MADE IT
DIFFICULT TO SHED TRACKS ALTHOUGH THAT IS BEGINNING TO CHANGE

CP RAIL LAST SUMMER SECURED GOVERNMENT CLEARANCE TO SELL OR ABANDON MOST OF
ITS RAIL OPERATIONS FROM SHERBROOKE QUEBEC TO THE PORT CITY OF SAINT JOHN
NEW BRUNSWICK THE COMPANY IS STILL AWAITING CLEARANCE FROM THE US
INTERSTATE COMMERCE COMMISSION TO SHED A PORTION OF THAT LINE ACROSS
NORTHERN MAINE

IN NOVEMBER CANADIAN AUTHORITIES APPROVED A REQUEST BY CANADIAN NATIONAL
AND CP RAIL TO SHARE A 300MILE LINE IN THE OTTAWA VALLEY BETWEEN QUEBEC AND
ONTARIO WHERE THE CARRIERS HAD BEEN OPERATING PARALLEL TRACKS A FEW MILES
APART

MANY OBSERVERS EXPECTED THE OTTAWA VALLEY TRACKSHARING FORMULA TO SERVE AS
A MODEL FOR BROADER COOPERATION THE RAILWAYS CURRENTLY OPERATE PARALLEL
LINES ACROSS MUCH OF EASTERN AND CENTRAL CANADA HAULING GOODS RANGING FROM
AUTO PARTS TO BEER TO PULP AND PAPER BUT THE COMPANIES' CHIEF EXECUTIVES
ARE INDICATING THEY WANT TO GO FURTHER FORMING A NEW JOINTLY OWNED COMPANY
THAT WOULD MELD MARKETING AND ADMINISTRATIVE FUNCTIONS AS WELL AS TRACKS
AND RAIL YARDS

THE IDEA PROMISES TO BE CONTENTIOUS

WITH A SINGLE CARRIER THERE WILL BE A PERCEPTION OF MUCH GREATER REDUCTION
IN COMPETITION THAN WITH SHARED INFRASTRUCTURE BUT COMPETING SERVICES SAYS
JOHN HEADS DIRECTOR OF THE UNIVERSITY OF MANITOBA'S TRANSPORT INSTITUTE

THE PROPOSAL MAY FOUNDER ON NEGOTIATIONS BETWEEN THE RAILWAYS THEMSELVES
TERMS OF A MERGER INCLUDING CAPITAL OWNERSHIP AND MANAGEMENT STRUCTURES
WON'T BE NEGOTIATED UNTIL THE GOVERNMENT GIVES A GOAHEAD TO THE CONCEPT

AMONG MATTERS TO BE SETTLED IS HOW MUCH OF THE COMPANIES' US LINES WOULD
BE INCLUDED IN THE MERGER BOTH HAVE INVESTED HEAVILY TO IMPROVE ACCESS TO
THE US

CANADIAN NATIONAL IS DIGGING A 200MILLION CANADIAN DOLLAR US153 MILLION
TUNNEL UNDER THE ST CLAIR RIVER BETWEEN SARNIA ONTARIO AND PORT HURON
MICH TO SPEED CROSSBORDER SHIPMENTS MR TELLIER SAYS THE TUNNEL COULD BE
INCLUDED IN THE MERGER ALONG WITH CANADIAN NATIONAL'S GRAND TRUNK WESTERN
LINES FROM PORT HURON TO CHICAGO AND CINCINNATI

CANADIAN PACIFIC'S CHAIRMAN WILLIAM STINSON HAS INDICATED THAT CP RAIL'S
DELAWARE & HUDSON LINES MIGHT BE INCLUDED THE CANADIAN CONGLOMERATE BOUGHT
THE D&H IN 1991 BRINGING IT OUT OF BANKRUPTCY PROCEEDINGS THE D&H PROVIDES
ACCESS TO EASTERN US PORTS

CP RAIL MEN TRADITIONALLY SCORNED CANADIAN NATIONAL BASED NEARBY IN
MONTREAL AS A SLEEPY GOVERNMENT OUTPOST BUT MR TELLIER A FORMER SENIOR
CIVIL SERVANT BROUGHT A HARDCHARGING STYLE TO CN WHEN HE JOINED THE
COMPANY IN 1992

IN SHORT ORDER MR TELLIER SWEPT A LAYER OF VICE PRESIDENTS FROM THE
EXECUTIVE SUITE AND ANNOUNCED A CHARGE OF C887 MILLION TO ELIMINATE 11000
JOBS OR 30 OF THE WORK FORCE BY 1995 CN ALSO INITIATED
REVENUEGENERATING MEASURES INCLUDING AN ARRANGEMENT WITH US RAILWAY
BURLINGTON NORTHERN INC TO STREAMLINE SHIPMENTS FROM WESTERN CANADA TO
CHICAGO AND AN ALLIANCE WITH JB HUNT TRANSPORT SERVICES INC IN THE US
TO HAUL TRAILERS FOR THE TRUCKING COMPANY BY RAIL BETWEEN CHICAGO AND
CENTRAL CANADA

THERE ARE SIGNS THE RAILROADS ARE MAKING HEADWAY CP RAIL HAD OPERATING
PROFIT OF C1035 MILLION IN THE FIRST NINE MONTHS OF 1993 COMPARED WITH A
YEAREARLIER LOSS OF C1749 MILLION WHICH INCLUDED A C2702 MILLION
CHARGE TO CONVERT TO TWOPERSON TRAIN CREWS FROM THREEPERSON CREWS CN SAYS
IT HOPES TO TURN A SMALL NET PROFIT THIS YEAR FOLLOWING A 1993 LOSS
ESTIMATED AT C70 MILLION

BUT BOTH COMPANIES SAY MUCH MORE PROGRESS IS NEEDED IF THEY ARE TO COMPETE
WITH US RAILROADS WHICH CAN DRAW TRAFFIC FROM CENTRAL CANADA TO US
PORTS AMONG OTHER MEASURES THEY ARE PRESSING THEIR UNIONS FOR GREATER
LABOR FLEXIBILITY

OPERATING EXPENSES CONSUME WELL OVER 90 OF REVENUE AT THE CANADIAN
CARRIERS COMPARED WITH THE 85 OR LESS FOR MOST MAJOR US RAILROADS WITH
INTEREST PAYMENTS RUNNING TO C200 MILLION A YEAR AT CANADIAN NATIONAL
ALONE THE TIGHT OPERATING MARGIN LEAVES LITTLE MONEY TO REINVEST IN
INFRASTRUCTURE 9401240157 940124 QVC IS FACING NEW PRESSURE ON
PARAMOUNT  FIRM LIKELY TO REVISE BID AFTER TARGET'S DIRECTORS 
ENDORSE VIACOM'S OFFER  BY RANDALL SMITH AND JOHNNIE L ROBERTS 
STAFF REPORTERS OF THE WALL STREET JOURNAL

QVC NETWORK INC IS UNDER INCREASED PRESSURE TO IMPROVE ITS BID FOR
PARAMOUNT COMMUNICATIONS INC FOLLOWING THE PARAMOUNT BOARD'S ENDORSEMENT OF
THE LATEST 98 BILLION 83ASHARE TAKEOVER BID BY VIACOM INC

THE PARAMOUNT DIRECTORS ENDORSED THE VIACOM BID BASED ON AN OPINION BY
THEIR ADVISER LAZARD FRERES & CO THAT IT WAS MARGINALLY SUPERIOR EVEN
THOUGH ITS MARKET VALUE CURRENTLY IS LOWER THAN THE QVC BID CURRENTLY
VALUED AT ABOUT 102 BILLION OR 8472 A SHARE

LAZARD BASED ITS OPINION ON OTHER TESTS OF VALUE FOR THE CASHANDSTOCK BIDS
PLUS INFORMAL POLLS OF TRADERS AND INVESTORS MANY OF WHOM SAY THEY FAVOR
THE VIACOM BID BECAUSE IT PROVIDES EXTRA COMPENSATION IF VIACOM CLASS B
SHARES AREN'T TRADING AT 48 A SHARE A YEAR FOLLOWING A VIACOMPARAMOUNT
ACQUISITION

THE BOARD TERMINATED A MERGER AGREEMENT THAT IT STRUCK JUST BEFORE CHRISTMAS
WITH QVC AND SIGNED A NEW MERGER ACCORD WITH VIACOM THE ACCORDS ARE
DESIGNED TO BE SEVERED AS SOON AS THE OTHER SIDE MAKES A HIGHER OFFER UNDER
BIDDING RULES SET BY PARAMOUNT VIACOM FIRST AGREED TO ACQUIRE PARAMOUNT ON
SEPT 12

QVC IS EXPECTED TO RETURN WITH A REVISED BID SOMETIME THIS WEEK AND BOTH
COMPANIES ARE SUPPOSED TO MAKE THEIR BEST AND FINAL OFFERS BY FEB 1 WHICH
PARAMOUNT IS PROMOTING AS SUPERBID TUESDAY AFTER SUPERBOWL SUNDAY

ONE FACTOR THE PARAMOUNT BOARD TRIED TO TAKE INTO ACCOUNT IN EVALUATING THE
BIDS IS WHAT PARAMOUNT ADVISERS CALL THE VICTORY PARADOX UNDER WHICH THE
CONTESTANT THAT HAS THE BETTER BID SEES ITS STOCK GET HIT IN THE
MARKETPLACE

AS A RESULT LAZARD ATTEMPTED TO VALUE QVC'S BID BASED ON ITS STOCK PRICE
WHEN QVC WAS PERCEIVED TO HAVE THE WINNING BID SO THAT IT WOULD BE
COMPARABLE TO THE VALUATION OF VIACOM'S BID WHEN TRADERS BELIEVE VIACOM HAS
THE BETTER BID WHEN QVC WAS THOUGHT TO BE THE WINNER ITS STOCK TRADED AS
LOW AS 38 A SHARE FAR BELOW ITS CLOSING PRICE OF 44 A SHARE IN COMPOSITE
TRADING FRIDAY ON THE NASDAQ STOCK MARKET

HOWEVER ONE PERSON CLOSE TO QVC COMPLAINED THAT SUCH A METHOD COULD HAVE
RESULTED IN LAZARD VALUING QVC'S STOCK AT A LEVEL 5 OR 6 LOWER THAN ITS
CURRENT MARKET PRICE WHILE VALUING VIACOM STOCK AT ITS CURRENT MARKET
PRICE

THE EXACT NUMBERS LAZARD USED COULDN'T BE OBTAINED AND A SPOKESMAN FOR
LAZARD DECLINED TO COMMENT BUT LAZARD WAS UNDERSTOOD TO HAVE USED SEVERAL
OF THE SAME VALUATION METHODOLOGIES THAT IT HAS USED THROUGHOUT THE CONTEST

PETER SCHOENFELD VICE CHAIRMAN AND HEAD OF PROPRIETARY TRADING AT WERTHEIM
SCHRODER & CO SAID HE BELIEVED THE PARAMOUNT BOARD ACTED RATIONALLY IN
ENDORSING THE VIACOM BID MR SCHOENFELD EXPLAINED THAT ROUGHLY 75 OF
VIACOM'S BID COMPRISES CASH AND A CONTINGENTVALUE RIGHT THAT LOCKS IN A
MINIMUM VALUE EVEN IF THE PRICE OF VIACOM'S STOCK FALLS BY COMPARISON HE
SAID ONLY ABOUT 55 OF QVC'S BID INCLUDES CASH OR OTHER FIXED VALUES AT
THIS POINT WE WOULD BE TENDERING OUR SHARES TO VIACOM HE SAID

MR SCHOENFELD ADDED THAT THE BOARD'S ACTION INCREASES THE LIKELIHOOD THAT
QVC COULD LOSE THE CONTEST IF IT DIDN'T REVISE ITS BID BY JAN 31 VIACOM
COULD WIN THE CONTEST IF QVC DIDN'T RAISE ITS BID BY THAT DATE AND VIACOM
GARNERED 501 OF PARAMOUNT SHARES UNDER ITS OFFER

BARRY DILLER QVC'S CHAIRMAN CONTINUED TO COURT TAKEOVER STOCK TRADERS LAST
FRIDAY MEETING WITH TRADERS FROM ABOUT SEVEN FIRMS THAT SPECIALIZE IN
TAKEOVER TRADING KNOWN AS ARBITRAGE

ALLOWING TRADERS WITH BIG PARAMOUNT POSITIONS THE CHANCE TO SWAP IDEAS WITH
MR DILLER COULD HELP IN A CLOSEFOUGHT BIDDING FINALE BECAUSE THE CASE FOR
QVC'S STOCK PRICE DEPENDS HEAVILY ON THE PERCEPTION OF MR DILLER'S
ABILITIES AS A MANAGER OF ENTERTAINMENT ASSETS

ONE PERSON IN THE QVC CAMP NOTED THAT THE OUTCOME OF THE DEAL IS NOW IN THE
HANDS OF VERY SHORTTERM PLAYERS THE TOUGH PART OF ALL OF THIS IS THAT
AFTER THE PARAMOUNT DEAL IS DONE MOST OF THEM WILL BE GONE THIS PERSON
SAID

VIACOM IS OFFERING 107 A SHARE IN CASH FOR 501 OF PARAMOUNT SHARES PLUS
SECURITIES FOR THE REMAINING 499 QVC IS OFFERING 92 IN CASH FOR 501
PLUS SECURITIES FOR 499 MR DILLER IS SAID TO BE CONSIDERING BOOSTING THE
CASH IN HIS BID AS WELL AS ADDING SOME MECHANISM FOR BOLSTERING THE PRICE
OF QVC STOCK BEING OFFERED AS PART OF HIS CASHANDSTOCK BID

IF HE DOES COME BACK WITH A REVISED BID AS TRADERS CONSIDER LIKELY IT
PROBABLY WILL BE SOMETIME DURING THE MIDDLE TO LATTER PART OF THIS WEEK QVC
WILL WANT TO SEE WHERE VIACOM'S STOCK TRADES EARLY THIS WEEK WITH THE
PARAMOUNT BOARD'S ENDORSEMENT BUT IT MAY ALSO WANT TO MAKE THE CHANGE A FEW
DAYS BEFORE JAN 31 TO ALLOW ITS OWN STOCK TO SETTLE AT ITS NEW LEVEL AS
WELL

IN AN INTERVIEW MR DILLER SAID THE BOARD'S DECISION CAME AS NO SURPRISE
WE WERE DISAPPOINTED HE SAID WE CONTINUE TO BELIEVE OUR OFFER IS
SUPERIOR BEYOND THE SHORT TERM WHILE WE MAY BE ACCUSED OF TILTING AT
WINDMILLS WE BELIEVE YOU CAN'T ANALYZE THIS TRANSACTION WITHOUT A LONGTERM
VIEW BUT THE QVC CHIEF SAID HE COULDN'T SAY WHEN QVC WOULD RESPOND WITH
ANOTHER OFFER OR EVEN IF IT WOULD

BOTH QVC AND VIACOM SUBMITTED MEMOS TO THE PARAMOUNT BOARD BEFORE THE
MEETING TOUTING THE VALUE OF THEIR OFFERS AND QVC ADVISERS AT ALLEN & CO
WERE ANGERED THAT THEIR MEMO WAS GIVEN TO VIACOM BEFORE THE MEETING
ALLOWING VIACOM ADVISERS AT SMITH BARNEY SHEARSON INC THE CHANCE TO
RESPOND BUT ONE PERSON CLOSE TO THE BOARD SAID THE DIRECTORS DISCOUNTED THE
MEMOS AS SELLING DOCUMENTS ANYWAY AND CALLED THE DISPUTE A TEMPEST IN A
TEAPOT 9401240156 940124 WHO'S NEWS AMERICAN CYANAMID CO

AMERICAN CYANAMID CO WAYNE NJ LAWRENCE E TILTON 58 YEARS OLD
FORMERLY PRESIDENT OF THE LEDERLE CONSUMER HEALTH DIVISION WAS NAMED
PRESIDENT OF THIS CHEMICAL CONCERN'S LEDERLE LABORATORIES DIVISION
SUCCEEDING EDWARD V FRITZKY 43 WHO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE
OF 535OWNED IMMUNEX CORP GARY S BALKEMA 38 FORMERLY GENERAL MANAGER
OF THE LEDERLE CONSUMER HEALTH PRODUCTS DIVISION WAS NAMED VICE PRESIDENT
OF LEDERLE CONSUMER HEALTH DIVISION 9401240155 940124 WHO'S NEWS 
PACIFICORP

PACIFICORP PORTLAND ORE KEITH R MCKENNON A DIRECTOR WAS NAMED
CHAIRMAN OF THIS ELECTRIC UTILITY HE SUCCEEDS DON C FRISBEE 70 YEARS OLD
WHO IS RETIRING FROM THE POST TO BECOME CHAIRMAN EMERITUS EFFECTIVE FEBRUARY
9 MR MCKENNON 60 RECENTLY RETIRED AS CHIEF EXECUTIVE OFFICER OF DOW
CORNING CORP AS REPORTED EARLIER FREDERICK W BUCKMAN WAS NAMED PRESIDENT
AND CHIEF EXECUTIVE OFFICER SUCCEEDING AM GLEASON 63 WHO WAS NAMED VICE
CHAIRMAN MR BUCKMAN IS FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF
CONSUMERS POWER CO A SUBSIDIARY OF CMS ENERGY CORP 9401240154 940124
WHO'S NEWS EQUITABLE COS

EQUITABLE COS NEW YORK MICHAEL E FISHER 52 YEARS OLD WAS NAMED A
SENIOR VICE PRESIDENT AT THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE US
DIVISION OF THIS INSURANCE AND ASSETMANAGEMENT COMPANY IN THE NEW
POSITION MR FISHER WILL COORDINATE INSURANCE AND ANNUITY PRODUCT
MARKETING HE IS A FORMER MARKETING EXECUTIVE AT THE INSTITUTIONAL ASSET
MANAGEMENT UNIT OF BANKERS TRUST CO 9401240153 940124 WHO'S NEWS 
CHYRON CORP

CHYRON CORP MELVILLE NY MARK C GRAY 45 YEARS OLD WAS NAMED
PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DIGITAL ELECTRONIC GRAPHICS
EQUIPMENT AND SYSTEMS MAKER MR GRAY FORMERLY EXECUTIVE VICE PRESIDENT AND
GENERAL MANAGER AT SONY CORP'S BUSINESS AND PROFESSIONAL GROUP SUCCEEDS
ALFRED OP LEUBERT 71 WHO RESIGNED LAST YEAR CHYRON VICE CHAIRMAN PETER
J LANCE 57 HAD BEEN ACTING PRESIDENT AND CHIEF OPERATING OFFICER
FOLLOWING MR LEUBERT'S RESIGNATION IN MARCH CHYRON IS 69OWNED BY PESA
INC A UNIT OF MADRIDBASED PESA ELECTRONICA SA A BROADCAST ELECTRONIC
COMPANY 9401240152 940124 WHO'S NEWS SUMMIT BANCORP

SUMMIT BANCORP CHATHAM NJ ROBERT G COX 52 YEARS OLD WAS NAMED TO
SUCCEED THOMAS D SAYLES JR AS CHIEF EXECUTIVE OF SUMMIT AND CHAIRMAN OF
ITS SUMMIT BANK MR COX WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OF
THE UNIT AND PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT MR COX'S
PREVIOUS DUTIES WILL NOW BE CARRIED OUT BY A MANAGEMENT EXECUTIVE COMMITTEE
REPORTING TO HIM MR SAYLES 62 WILL CONTINUE AS CHAIRMAN AT THE 43
BILLION BANK HOLDING COMPANY AND AS A MEMBER OF ITS EXECUTIVE COMMITTEE
UNTIL HE RETIRES IN LATE 1996 9401240151 940124 WHO'S NEWS READER'S
DIGEST ASSOCIATION INC

READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY FOUR SENIOR VICE
PRESIDENTS WERE NAMED AT THIS PUBLISHER AND DIRECTMAIL MARKETER PETER J
DAVENPORT 53 YEARS OLD SENIOR VICE PRESIDENT GLOBAL DIRECT MARKETING
KENNETH A GORDON 56 SENIOR VICE PRESIDENT AND PRESIDENT US JOSEPH M
GRECKY 54 SENIOR VICE PRESIDENT HUMAN RESOURCES AND ANTHONY W RUGGIERO
52 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALL FOUR WERE
FORMERLY VICE PRESIDENTS AND THE POSTS TO WHICH THEY WERE NAMED ARE NEW
9401240150 940124 MONEY FUND ASSETS INCREASE 119 BILLION

WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 119 BILLION TO 59966
BILLION FROM A REVISED 59847 BILLION IN THE WEEK ENDED WEDNESDAY THE
INVESTMENT COMPANY INSTITUTE SAID

ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS INCREASED BY 9893 MILLION
TO 40171 BILLION THE TRADE GROUP SAID

AMONG RETAIL FUNDS ASSETS OF 404 TAXABLE MONEY MARKET FUNDS ROSE 142
BILLION TO 31061 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS FELL 433
MILLION TO 9109 BILLION

ASSETS OF THE 280 INSTITUTIONAL MONEY MARKET FUNDS ROSE 1934 MILLION TO
19795 BILLION

AMONG INSTITUTIONAL FUNDS THE ASSETS OF 226 TAXABLE MONEY MARKET FUNDS ROSE
7281 MILLION TO 17528 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL BY
5347 MILLION TO 2267 BILLION 9401240149 940124 MARKETING & MEDIA 
ADVERTISING CAPITAL CITIES/ABC CREATES UNIT TO SEEK ALTERNATIVEMEDIA
SALES  BY KEVIN GOLDMAN

CAPITAL CITIES/ABC IN A CLASSIC IF YOU CAN'T LICK THEM JOIN THEM
STRATEGY IS FORMING A DIVISION TO SELL ADVERTISING IN NEW OR ALTERNATIVE
MEDIA FROM VIDEO SCREENS IN CONVENIENCE STORES TO PERSONAL COMPUTERS

THE DIVISION CAPITAL CITIES/ABC NEW MEDIA SALES ALREADY HAS TWO CLIENTS
NEW YORKBASED SCREENVISION CINEMA NETWORK THE NATION'S LARGEST DISTRIBUTOR
OF COMMERCIALS IN THEATERS AND MINNEAPOLISBASED AMERICAN CONSUMER SERVICE
NETWORK A COMPANY THAT PLANS TO PLACE DIGITAL MONITORS IN 5000 CONVENIENCE
STORES AROUND THE COUNTRY LATER THIS YEAR

CAPITAL CITIES/ABC'S AGGRESSIVE MOVE UNDERSCORES THE RAPIDLY CHANGING
COMMUNICATIONS LANDSCAPE RATHER THAN REMAINING COMPLACENT IT'S STRIVING TO
EXPAND ITS SALES BASE BEYOND ITS BROADCASTTELEVISION NETWORK RADIO
NETWORKS AND PUBLISHING DIVISIONS TO INCLUDE MULTIMEDIA CLIENTS

WE'RE DIVERSIFYING TO REPRESENT NEW MEDIA THAT ARE POPPING UP ALL OVER THE
PLACE SAYS JOHN WATKINS PRESIDENT OF BOTH CAPITAL CITIES/ABC'S NATIONAL
TELEVISION SALES AND THE NEW DIVISION HE SAYS PART OF THE STRATEGY IS TO
SELL THE ABC NETWORK AND A CLIENT SUCH AS SCREENVISION AS A PACKAGE TO
ADVERTISERS

SCREENVISION PROVIDES ADVERTISING IN A MEDIUM THAT IS TV'S DIRECT
COMPETITOR MOVIES BUT THAT DOESN'T DAUNT MR WATKINS IN TERMS OF
EFFECTIVE ADVERTISING HE SAYS NOTHING BEATS ADVERTISING ON THE BIG
SCREENS IN MOVIE THEATERS

SCREENVISION COMMISSIONED FOUR STUDIES FROM THREE RESEARCH COMPANIES LAST
YEAR TO DETERMINE RECALL LEVELS OF COMMERCIALS SHOWN BEFORE THE MAIN FEATURE
IN MOVIE THEATERS ONE STUDY OF 200 PEOPLE BY FADER WILLIAMS A NEW YORK
RESEARCH COMPANY SPECIALIZING IN COMMUNICATIONS DATA FOUND THAT ONE DAY
LATER 77 WERE ABLE TO REMEMBER WHAT WAS ADVERTISED THE OTHER STUDIES
SHOWED SIMILAR RESULTS

MOVIE THEATERS HAVE GREAT SURROUND SOUND AND 60FOOT SCREENS WITH
LARGERTHANLIFE IMAGES MR WATKINS SAYS YOU TEND TO REMEMBER THOSE
IMAGES

PERHAPS THAT IS WHY MCDONALD'S IS SCHEDULED TO RUN ITS FIRST ADS IN MOVIE
THEATERS BEGINNING IN MIDFEBRUARY ADDITIONALLY DIET COKE PLANS TO SHOW
ITS NEW CAMPAIGN FROM INTERPUBLIC GROUP'S LOWE & PARTNERS NEXT MONTH THESE
COMPANIES JOIN SUCH DIVERSE CLIENTS AS AMERICAN TELEPHONE & TELEGRAPH
ACCLAIM ENTERTAINMENT MAKER OF VIDEO GAMES SONY MUSIC EVEREADY
BATTERIES GENERAL MOTORS CHRYSLER HASBRO NESTLE THE FOX NETWORK AND
YES THE ABC NETWORK IN ADVERTISING ON THE BIG SCREEN

IT WASN'T SO LONG AGO THAT CONSUMERS AFTER SPENDING UPWARD OF 750 FOR A
MOVIE TICKET WOULD ANGRILY HURL CATCALLS IF A COMMERCIAL APPEARED ON THE
SCREEN

BUT ADVERTISERS HAVE GOTTEN SAVVIER MR WATKINS SAYS SELDOM FOR EXAMPLE
DO THEY RUN A TV COMMERCIAL IN MOVIE THEATERS INSTEAD THEY TRY FOR A FRESH
LOOK MOVIE ADS AVERAGE 45 SECONDS IN LENGTH INSTEAD OF TV'S 30 SECONDS
THEATERS SUBSCRIBING TO SCREENVISION'S SERVICES SHOW A MAXIMUM OF FOUR
MINUTES OF COMMERCIALS AND A MINIMUM OF ONE MINUTE

THE RELATIONSHIP BETWEEN CAPITAL CITIES/ABC AND SCREENVISION WHICH SUPPLIES
COMMERCIALS TO 6500 OF THE APPROXIMATELY 21000 FIRSTRUN SCREENS IN THE
US GREW OUT OF A FRIENDSHIP BETWEEN ONE OF SCREENVISION'S OWNERS AND AN
EXECUTIVE AT THE GIANT COMMUNICATIONS COMPANY

DENNIS FOGARTY SCREENVISION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS
HE TOLD ONE OF SCREENVISION'S OWNERS THAT I NEEDED MORE SALES POWER ON THE
STREET TO AUGMENT HIS SMALL SALES FORCE OF SEVEN EMPLOYEES THE OWNER
REFERRED HIM TO CAPITAL CITIES/ABC'S NEW UNIT

I HAVE TO GET THE WORD OUT TO MORE AGENCIES AND CLIENTS MR FOGARTY SAYS
WITH CAPITAL CITIES/ABC I'M ABLE TO TAP INTO A PROFESSIONAL SALES FORCE I
CAN TRIPLE THE NUMBER OF SALES CALLS I CAN MAKE AND IT ADDS A LOT OF
PRESTIGE TO HAVE CAPITAL CITIES/ABC SELLING US

CAPITAL CITIES/ABC AND SCREENVISION PLAN TO TARGET ENTIRE CATEGORIES THEY
FEEL ARE RIPE FOR ADVERTISING IN MOVIE THEATERS INCLUDING FASHION
FRAGRANCE AND TOURISM

CAPITAL CITIES/ABC IS ENTERING THE BUSINESS JUST AS MOVIE THEATERS ARE
BECOMING MORE POPULAR VENUES FOR PRODUCT MERCHANDISING SOME COMPANIES FOR
EXAMPLE AREN'T MERELY CONTENT TO PUT ADS ON THE SCREEN ACCLAIM
ENTERTAINMENT OYSTER BAY NY IS INTRODUCING A VIDEOGAME VERSION OF ITS
POPULAR BASKETBALL ARCADE GAME NBA JAM PARTLY THROUGH ADVERTISING IN MOVIE
THEATERS

VIDEO GAMES HAVE BECOME AN ENTERTAINMENT MEDIUM SAYS SAM GOLDBERG VICE
PRESIDENT OF MARKETING AT ACCLAIM THERE IS GREAT SYNERGY BETWEEN VIDEO
GAMES AND MOVIE THEATERS THE IMAGES WE'RE ABLE TO PORTRAY FROM A VIDEO
STANDPOINT ARE LARGER THAN LIFE AND LARGER THAN A SMALL TV SCREEN CAN
ACCOMMODATE

ACCLAIM IS ALSO CONDUCTING A NATIONAL SWEEPSTAKES FOR NBA JAM THAT WILL
AWARD 65000 WORTH OF PRIZES ENTRY FORMS WILL BE AVAILABLE AT THEATER
CONCESSION STANDS

MR WATKINS SEES ENDLESS POSSIBILITIES WITH SCREENVISION ONE POTENTIAL
SCENARIO A ROCKMUSIC VIDEO COULD BE USED TO ADVERTISE A COMPACT DISK AND
ALSO TO PROMOTE IN CONCERT A LATENIGHT FRIDAY SERIES ON THE ABC NETWORK

DOWN THE ROAD IN THE AGE OF THE INFORMATION SUPERHIGHWAY THERE IS THE
POSSIBILITY THAT ADVERTISEMENTS ON PERSONAL COMPUTERS WILL BECOME
COMMONPLACE ALREADY ADS FOR SOME COMPANIES RANGING FROM INTERNATIONAL
BUSINESS MACHINES TO COORS BEER APPEAR ON PROGRAMS AVAILABLE ON PERSONAL
COMPUTERS MR WATKINS HOPES TO PURSUE THAT BUSINESS AS WELL

THE WORLD IS CHANGING SAYS MR WATKINS ADVERTISERS NO LONGER BUY ONLY
NEWSPAPERS MAGAZINES AND TELEVISION WE HAVE TO BE AGGRESSIVE AND WE HAVE
TO BE FIRST IN THE SELLING OF ADVERTISING TO THE NEW MEDIA

GRIFFIN BACAL IS IN DISCUSSIONS WITH OMNICOM GROUP'S DDB NEEDHAM TO FORM A
JOINT VENTURE OR PARTNERSHIP ARRANGEMENT IN ORDER TO HANDLE THE OVERSEAS
PORTION OF THE HASBRO ACCOUNT ACCORDING TO OFFICIALS CLOSE TO THE TALKS

HASBRO WANTS TO BECOME A LARGER FORCE OVERSEAS AND HAS ASKED GRIFFIN BACAL
A NEW YORKBASED AGENCY WITH OVERSEAS OFFICES IN LONDON AND ATHENS TO HELP
WITH THE TASK GRIFFIN BACAL IS HASBRO'S LEAD AGENCY BUT GRIFFIN BACAL
DOESN'T HAVE THE CAPABILITY ABROAD OF NEEDHAM WHICH IS ALSO A HASBRO
AGENCY NEEDHAM OPERATES 127 OFFICES OVERSEAS INCLUDING 61 IN EUROPE

DETAILS OF THE TALKS AND OF HOW THE POSSIBLE ALLIANCE WOULD WORK 
COULDN'T BE DETERMINED AT GRIFFIN BACAL TOM GRIFFIN COCHAIRMAN AND CHIEF
EXECUTIVE OFFICER AND PAUL KURNIT PRESIDENT AND CHIEF OPERATING OFFICER
WERE TRAVELING FROM GREECE TO NEW YORK ON FRIDAY AND COULDN'T BE REACHED A
NEEDHAM SPOKESMAN DECLINED COMMENT AND A HASBRO SPOKESMAN SAID EXECUTIVES IN
LONDON COULDN'T BE REACHED

SUSAN D GILLETTE PRESIDENT OF THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB
NEEDHAM SAID FRIDAY SHE IS RELINQUISHING HER ROLE TO SPEND MORE TIME
WITH HER FAMILY SHE WILL CONTINUE WITH THE AGENCY PART TIME AS STRATEGIC
AND CREATIVE PLANNER OF THE GLOBAL HELENE CURTIS BUSINESS AND AS CONSULTANT
ON OTHER UNSPECIFIED ACCOUNTS

MS GILLETTE 43 YEARS OLD WILL BE SUCCEEDED BY ALAN PILKINGTON 51
EXECUTIVE VICE PRESIDENT MANAGING DIRECTOR WHO HAS ALSO BEEN APPOINTED A
MANAGING PARTNER OF THE AGENCY

RUMORS SURFACED ON MADISON AVENUE IN AUGUST THAT MS GILLETTE WHO JOINED
THE AGENCY IN 1975 AS A COPYWRITER AND WAS THE CREATIVE FORCE BEHIND THE
SUCCESSFUL THE NIGHT BELONGS TO MICHELOB FOR ANHEUSERBUSCH WANTED TO
RESIGN THE WORD IS SHE CHANGED HER MIND ON MORE THAN ONE OCCASION MS
GILLETTE DIDN'T RETURN PHONE CALLS

MS GILLETTE WAS NAMED PRESIDENT OF THE CHICAGO OPERATION IN NOVEMBER 1990
SUCCEEDING JOEL HOCHBERG WHO BECAME PRESIDENT OF MARKETING AT NEWS CORP'S
TWENTIETH CENTURY FOX STUDIOS

CUNARD CUNARD LINE LTD SELECTED SAATCHI & SAATCHI'S BACKER SPIELVOGEL
BATES WORLDWIDE TO HANDLE ITS WORLDWIDE ADVERTISING ESTIMATED AT 20
MILLION BSB SUCCEEDS MARGEOTES FERTITTA & WEISS FOLLOWING A THREEMONTH
REVIEW THAT INCLUDED SAATCHI & SAATCHI ADVERTISING WELLS RICH GREENE BDDP
BSB AND MARGEOTES

BBDO OMNICOM GROUP'S BBDO WORLDWIDE NAMED CANDACE WONG CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF BBDO HONG KONG AND BBDO/CNUAC THE AGENCY'S VENTURE IN
CHINA SUCCEEDING STEVE CHAN WHO WILL CONTINUE AS A SENIOR CONSULTANT ON
THE CHINESE MARKET

ANHEUSER MEDIA ANHEUSERBUSCH WHICH LEARNED LAST WEEK THAT BUDWEISER
AGENCY D'ARCY MASIUS BENTON & BOWLES WOULD BE BUYING SOME MEDIA FOR BUD
RIVAL MILLER BREWING SAID IT HAS REVIEWED THE SITUATION IN DETAIL AND
DOESN'T CONSIDER IT A CONFLICT AT THIS TIME D'ARCY IS HANDLING THE
ASSIGNMENT FROM MILLER A UNIT OF PHILIP MORRIS AS PART OF A MEDIA
CONSOLIDATION WITH KRAFT GENERAL FOODS ANOTHER PHILIP MORRIS UNIT
9401240148 940124 JUSTICES TO RULE WHETHER BAN ON FRAUD IN INITIAL
OFFERINGS APPLIES TO RESALES  BY PAUL M BARRETT STAFF REPORTER OF
THE WALL STREET JOURNAL

WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER A FEDERAL LAW
BARRING FRAUD IN INITIAL PUBLIC SALES OF STOCK ALSO APPLIES TO RESALES OF
THE SHARES

THE JUSTICES WILL USE A DISPUTE BETWEEN A NEW YORK INVESTMENT BANKING FIRM
ALLEN & CO AND AN AUSTRALIAN HOLDING COMPANY PACIFIC DUNLOP LTD TO
DECIDE THE ISSUE

ASKED BY THE HIGH COURT FOR ITS VIEWS THE CLINTON ADMINISTRATION HAS
ALREADY FILED A BRIEF URGING THE JUSTICES TO INTERPRET THE ANTIFRAUD LAW
BROADLY IF JUSTICES FOLLOW THIS ADVICE IT WOULD GIVE PLAINTIFFS AN
ADVANTAGE IN LAWSUITS ALLEGING DISHONESTY IN SECURITIES DEALS

SECTION 122 OF THE SECURITIES ACT OF 1933 BARS FALSE STATEMENTS OR THE
OMISSION OF MATERIAL FACTS IN SECURITIES SALES INVOLVING A PROSPECTUS OR
ORAL COMMUNICATION THE LAW IS A POTENT WEAPON BECAUSE UNLIKE ANOTHER
MAJOR ANTIFRAUD PROVISION SECTION 10B OF THE 1934 SECURITIES EXCHANGE ACT
 IT DOESN'T REQUIRE INVESTORS TO PROVE THAT THEY ACTUALLY RELIED ON
FRAUDULENT STATEMENTS OR OMISSIONS IN DECIDING WHETHER TO BUY STOCK SECTION
122 ALSO ALLOWS FOR BIGGER DAMAGE AWARDS

LOWERCOURT RULINGS HAVE LED TO CONFUSION OVER WHETHER SECTION 122 APPLIES
TO SECURITIES TRANSACTIONS OTHER THAN INITIAL PUBLIC OFFERINGS THE JUSTICES
PRESUMABLY INTEND TO CLARIFY THE AMBIGUITY A DECISION IS EXPECTED BY EARLY
SUMMER

IN THE CASE THE HIGH COURT WILL HEAR ALLEN & CO IS APPEALING A RULING BY
THE FEDERAL APPEALS COURT IN CHICAGO WHICH SAID SECTION 122 ISN'T
RESTRICTED TO INITIAL OFFERINGS

ALLEN WAS SUED UNDER SECTION 122 IN 1990 BY A UNIT OF PACIFIC DUNLOP THE
UNIT ALLEGED THAT THE INVESTMENT BANKING FIRM SOLD IT STOCK IN A
BATTERYMANUFACTURING COMPANY WITHOUT DISCLOSING THAT THE COMPANY FACED
EXTENSIVE ENVIRONMENTALLIABILITY CLAIMS A FEDERAL TRIAL JUDGE IN CHICAGO
DISMISSED THE SUIT BUT THE APPEALS COURT REVERSED THAT RULING ALLEN THEN
APPEALED TO THE SUPREME COURT

ALLEN & CO VS PACIFIC DUNLOP HOLDINGS INC

SEPARATELY THE HIGH COURT SAID IT WOULD CONSIDER HOW FAR COURTS OR LOCAL
GOVERNMENTS MAY GO IN CURBING PROTESTS OUTSIDE ABORTION CLINICS

THE JUSTICES WILL EXAMINE A FLORIDA STATE COURT'S ORDER THAT PROTESTERS HAD
TO STAY OUT OF A 36FOOTWIDE BUFFER ZONE AROUND A MELBOURNE FLA CLINIC
THE CASE COULD HAVE NATIONAL IMPLICATIONS BECAUSE ABORTIONRIGHTS ADVOCATES
HAVE SOUGHT SIMILAR PROTECTION AGAINST PROTESTS AND BLOCKADES IN MANY
STATES

ANTIABORTION ACTIVISTS CLAIM THAT THE FLORIDA COURT ORDER VIOLATES THEIR
FIRST AMENDMENT RIGHT TO SPEAK FREELY DEFENDERS OF THE MELBOURNE CLINIC
AND OTHER ABORTION PROVIDERS IN THE STATE COUNTER THAT THE PROTESTERS
HARASSED PATIENTS AND EMPLOYEES

THE TRIAL JUDGE IN THE CASE FOUND THAT MEMBERS OF OPERATION RESCUE A
MILITANT ANTIABORTION GROUP HAD OBSTRUCTED THE CLINIC'S ENTRANCE FOLLOWED
PATIENTS AND CLINIC STAFF MEMBERS IN A STALKING MANNER AND ON SOME
OCCASIONS THREATENED VIOLENCE AGAINST PATIENTS AND EMPLOYEES

FLORIDA'S SUPREME COURT UPHELD THE JUDGE'S ORDER BUT ANTIABORTION ACTIVISTS
APPEALING THIS DECISION POINTED OUT THAT IN A SEPARATE CASE INVOLVING THE
SAME ORDER THE FEDERAL APPEALS COURT IN ATLANTA SAID THAT THE ORDER WAS
UNCONSTITUTIONAL BECAUSE IT RESTRICTED THE PROTESTERS' EXPRESSION BASED ON
THEIR POINT OF VIEW

IN OTHER ACTIONS FRIDAY THE HIGH COURT

 AGREED TO DECIDE WHETHER UNION MEMBERS MAY USE A FEDERAL CIVILRIGHTS
STATUTE TO SUE STATE OFFICIALS FOR FAILING TO ENFORCE STATE LABOR LAWS THE
CLINTON ADMINISTRATION WHICH FILED A BRIEF AT THE JUSTICES' REQUEST SAID
THAT EMPLOYEES WHOSE COLLECTIVE BARGAINING AGREEMENTS ARE GOVERNED BY
FEDERAL LAW SHOULDN'T BE DENIED ADDITIONAL PROTECTIONS PROVIDED BY A STATE
LABOR LAW

 CONSENTED TO HEAR A SEPARATE LABORLAW CASE IN WHICH THE QUESTION IS
WHETHER AIRLINE AND RAILROAD WORKERS MAY SUE THEIR EMPLOYERS IN STATE COURTS
FOR ALLEGEDLY RETALIATORY FIRINGS THE JUSTICES WILL CONSIDER AN APPEAL BY
HAL INC'S HAWAIIAN AIRLINES OF A LOWERCOURT RULING THAT SAID SUCH SUITS
MAY BE FILED UNDER STATE LAWS HAWAIIAN AIRLINES ARGUED THAT A FEDERAL
LABORRELATIONS STATUTE GOVERNING THE RAILROAD AND AIRLINE INDUSTRIES
SUPERSEDES STATE LAWS AND REQUIRES WORKERS TO RESOLVE THEIR GRIEVANCES IN
OUTOFCOURT ARBITRATION PROCEEDINGS 9401240147 940124 TOYOTA NISSAN 
POST DECLINES IN JAPAN OUTPUT

TOKYO DOMESTIC PRODUCTION AND SALES BY TOYOTA MOTOR CORP AND NISSAN
MOTOR CO JAPAN'S TWO LARGEST CAR MAKERS CONTINUED TO SLIDE IN DECEMBER

BOTH TOYOTA AND NISSAN ALSO REPORTED A SHARP DECLINE IN THEIR DOMESTIC
PRODUCTION AND SALES FOR THE CALENDAR YEAR 1993

WHILE OVERSEAS PRODUCTION BY BOTH COMPANIES SOARED FROM THE 1992 LEVELS
THEIR AUTO EXPORTS FROM JAPAN SHOWED SHARP DECREASES AFFECTED BY SLUGGISH
ECONOMIES WORLDWIDE AND THE APPRECIATION OF THE YEN A RISE IN THE YEN'S
VALUE AGAINST OTHER CURRENCIES MAKES EXPORTS MORE EXPENSIVE FOR JAPANESE
MANUFACTURERS

IN DECEMBER TOYOTA HELD A 29 SHARE OF THE JAPANESE MARKET DOWN 23
PERCENTAGE POINTS FROM A YEAR EARLIER

NISSAN SAID IT HAD A 211 SHARE IN THE DOMESTIC MARKET IN DECEMBER DOWN
04 PERCENTAGE POINT FROM A YEAR EARLIER

TOYOTA'S DECEMBER OVERALL PRODUCTION A COMBINATION OF PASSENGER CARS AND
COMMERCIAL VEHICLES WITHIN JAPAN TOTALED 246634 UNITS DOWN 20 FROM A
YEAR EARLIER WHILE DOMESTIC SALES PLUMMETED 15 TO 135636

IN DECEMBER NISSAN'S TOTAL DOMESTIC OUTPUT FELL 24 TO 117494 UNITS WITH
DOMESTIC SALES FALLING 13 TO 72865

FOR ALL OF 1993 TOYOTA SAID TOTAL SALES FELL 74 TO 2065000 UNITS
PRODUCTION FELL 94 TO 3562000 CARS THE COMPANY ENDED THE YEAR WITH A
319 SHARE IN THE JAPANESE MARKET DOWN 02 PERCENTAGE POINT FROM THE
PREVIOUS YEAR

TOTAL VEHICLE SALES IN JAPAN DURING 1993 WERE ROUGHLY 6470000 UNITS DOWN
AROUND 490000 UNITS FROM THE 1992 LEVEL TOYOTA NOTED

OUTSIDE OF THE JAPANESE MARKET TOYOTA SAID A DECREASE IN EXPORTS TO NORTH
AMERICA EUROPE AND THE MIDDLE EAST MORE THAN OFFSET AN INCREASE IN ITS ASIA
AND OCEANIA SALES PUSHING DOWN THE TOTAL EXPORT FIGURE TO 1132000 DOWN
11 FROM A YEAR EARLIER

OVERSEAS OUTPUT HOWEVER JUMPED 16 FROM THE PREVIOUS YEAR TO 888559 CARS
BECAUSE OF INCREASED TRUCK PRODUCTION AT ITS BRITISH OPERATIONS AND THE
START OF NORMAL PRODUCTION AT A PLANT IN CALIFORNIA

NISSAN'S AUTO EXPORTS WERE DEPRESSED BY 27 ON THE YEAR TO 684088 UNITS
AMID SLUGGISH ECONOMIES IN MAJOR CONSUMING COUNTRIES HOWEVER ITS OVERSEAS
PRODUCTION CONTINUED TO INCREASE STEADILY REACHING 1006000 UNITS UP 17
FROM THE PREVIOUS YEAR 9401240146 940124 CSX UNIT PLANS SHIP PURCHASE

RICHMOND VA CSX CORP'S SEALAND SERVICE INC SAID IT WILL SPEND 250
MILLION FOR FOUR HIGHPERFORMANCE FUELEFFICIENT CONTAINER VESSELS AND
MIGHT ALSO MODIFY THREE VESSELS IN ITS CURRENT FLEET

SEALAND A CARGO CARRIER BASED IN LIBERTY CORNER NJ SAID THE VESSELS
WILL BE USED IN THE COMPETITIVE TRANSPACIFIC TRADE THE COMPANY SAID IT
INTENDS TO SIGN CONSTRUCTION CONTRACTS WITH JAPAN'S ISHIKAWAJIMA HARIMA
HEAVY INDUSTRIES CO DELIVERY IS SCHEDULED FOR THE SECOND HALF OF 1995 AND
FOR EARLY 1996 9401240145 940124 BUSINESS BRIEF BANCO ESPIRITO SANTO
 UNCONSOLIDATED PROFIT ROSE 15 IN 1993 ON REVENUE GAIN

BANCO ESPIRITO SANTO OF PORTUGAL SAID ITS UNCONSOLIDATED PROFIT ROSE 15 IN
1993 TO 202 BILLION PESETAS 1417 MILLION FROM 1992

ESPIRITO SANTO DIDN'T SPECIFY IF THE PROFIT WAS NET OR PRETAX AND DIDN'T
GIVE A YEAREARLIER FIGURE CONSOLIDATED RESULTS AREN'T YET AVAILABLE BUT
WILL BE ONLY MARGINALLY DIFFERENT FROM PARENT BANK RESULTS THE BANK SAID

ESPIRITO SANTO'S UNCONSOLIDATED CASH FLOW ROSE 16 IN 1993 TO 59 BILLION
PESETAS THE BANK SAID WITHOUT GIVING YEAREARLIER FIGURES

BANKINGACTIVITY REVENUE GREW 76 IN 1993 WHILE OPERATING COSTS GREW 16
THE BANK SAID WITHOUT PROVIDING ESCUDO FIGURES 9401240144 940124 GLOBAL
VIEW RUSSIANS AND JAPANESE NOW HAVE PEOPLE TO BLAME  BY GEORGE
MELLOAN

A NEWS PHOTO FROM TOKYO FRIDAY SAID IT ALL JAPANESE LEGISLATORS WERE ON
VIEW CHEERING DEFEAT OF PRIME MINISTER MORIHIRO HOSOKAWA'S EFFORT TO CUT OFF
THEIR ACCESS TO GRAFT POLITICAL ARROGANCE IS NOT UNIQUE TO ANY COUNTRY BUT
SELDOM HAS IT BEEN CAPTURED ON FILM WITH SUCH CLARITY

WHILE JAPAN'S LAWMAKERS WERE GUARDING THEIR INALIENABLE RIGHT TO BOODLE
RUSSIA'S NEWLY ELECTED DUMA WAS DISPLAYING ALMOST EQUAL CONCUPISCENCE LED
BY EXCOMMUNISTS MEMBERS GOT RIGHT DOWN TO THE IMPORTANT BUSINESS OF
SELFENRICHMENT THEY VOTED THEMSELVES SALARIES EQUAL TO THOSE OF CABINET
MINISTERS 48 DAYS OF VACATION FREE AIR AND RAIL TRANSPORTATION BONUSES
FOR WORK OF SPECIAL INTENSITY LUXURY HOUSING AND CHAUFFEURED CARS
COURTIERS OF THE CZARS WOULD HAVE APPLAUDED THE DISDAIN THESE WORTHIES
SHOWED FOR ANY OPINIONS THE POVERTYSTRICKEN MASSES MIGHT HAVE OF THEIR
EXERCISE IN SELFAGGRANDIZEMENT

THE GREED OF THE JAPANESE AND RUSSIAN POLITICAL CLASSES IS ENOUGH TO WEAKEN
ANYONE'S FAITH IN DEMOCRACY BUT KEEP ONE THING IN MIND THE CORRUPTION HAS
ALWAYS BEEN THERE IN BOTH COUNTRIES WHAT IS DIFFERENT NOW IS THAT IT
FINALLY HAS BEEN PUT ON PUBLIC DISPLAY THE OLD SOVIET COMMUNIST PARTY 
WITH THE PRESS UNDER CONTROL AND KGB THUGS ON CALL TO CHARM WOULDBE CRITICS
WITH BLACKJACKS HAD LITTLE NEED TO WORRY ABOUT NEWS OF PARTY PLUNDERING
MAKING THE MORNING HEADLINES JAPAN'S LONGRULING LIBERAL DEMOCRATIC PARTY
WAS FAR MORE SUBTLE BUT NOT MUCH LESS EFFECTIVE

NOW HOWEVER RUSSIA'S NEOCOMMUNISTS AND THE LDP BOTH HAVE STRONG POLITICAL
OPPOSITION THE REFORMIST BLOC IN THE DUMA RUSSIA'S CHOICE CALLED THOSE
WHO VOTED FOR THE PAY AND PERQUISITE PACKAGE IRRESPONSIBLE THE RUSSIAN
PRESS WAS NOT AMUSED IN JAPAN THE BOODLERS STILL HAVE MR HOSOKAWA HIS
GOVERNING COALITION AND PUBLIC OPINION TO CONTEND WITH

NEITHER THE RUSSIAN NEOCOMMUNISTS NOR THE JAPANESE OLD GUARD WILL BE ABLE
TO PUT THE LID BACK ON THEIR DOINGS ANYTIME SOON THE COMBINATION OF
ADVERSARIAL POLITICS AND ECONOMIC DIFFICULTIES MEANS THAT POLITICIANS WILL
BE OBSERVED CLOSELY BOTH BY THEIR OWN ELECTORATES AND THE INTERNATIONAL
COMMUNITY WHAT THE CONSEQUENCES WILL BE ARE NOT KNOWABLE BUT THE FACT THAT
BOTH COUNTRIES NOW HAVE OPEN MORE DEMOCRATIC POLITICAL SYSTEMS CERTAINLY
WILL HAVE CONSEQUENCES THE POLITICIANS IN BOTH PLACES CAN EXPECT TO BE HELD
TO HIGHER STANDARDS THAN IN THE PAST

FOR GOOD REASONS THE WORLD IS MORE CONCERNED ABOUT THE FUTURE OF REFORM IN
RUSSIA THAN IN JAPAN RUSSIA FOR ALL ITS ECONOMIC DISORDER STILL IS A
DANGEROUS NUCLEAR POWER IT IS ONLY NOW EMERGING RATHER CHAOTICALLY FROM
THE DARKNESS OF TOTALITARIANISM WHEREAS JAPAN ACCOMPLISHED THAT NEARLY A
HALFCENTURY AGO IT IS POOR AND HENCE RELATIVELY UNSTABLE WHEREAS JAPAN IS
RICH AND FOR ALL ITS PROBLEMS HAS ESSENTIALLY SOUND POLITICAL AND ECONOMIC
INSTITUTIONS

THE NEWS THAT RUSSIAN VOTERS THEMSELVES SHOWED STRONG REACTIONARY TENDENCIES
IN THE DECEMBER PARLIAMENTARY ELECTIONS WAS UNSETTLING TO THE WORLD AT
LARGE AS IT SHOULD HAVE BEEN ONE IS TEMPTED TO ASK IF RUSSIAN VOTERS
AFTER NEARLY A CENTURY OF OPPRESSION AND GRIEF ARE INCAPABLE OF LEARNING
FROM EXPERIENCE THEIR DEEP SUSPICIONS OF EACH OTHER AND THE OUTSIDE WORLD
SEEM TO INCLINE THEM TOWARD THE APPEAL OF DEMAGOGUES

BUT IT IS BY NO MEANS TRUE THAT AN END OF RUSSIA'S REFORM HAS BEEN SIGNALLED
BY THE STRENGTH OF THE ZHIRINOVSKY BLOC IN THE DUMA THE EMERGENCE OF PRIME
MINISTER VIKTOR CHERNOMYRDIN AS A NEW POLITICAL FORCE AND THE PRESENCE OF
APPARATCHIKS IN KEY POSTS IN THE CHERNOMYRDIN CABINET REFORMER BORIS
FYODOROV WHOSE RESIGNATION FROM GOVERNMENT SENT THE RUBLE TUMBLING LAST
WEEK SAID ON THE WEEKEND THAT THIS REACTIONARY SWING ONLY MEANS THAT REFORM
HAS BEEN SET BACK A YEAR IT WILL NOT BE REVERSED

BARRING ANY UNEXPECTED POLITICAL UPHEAVAL HE IS MOST LIKELY CORRECT WHAT
MR CHERNOMYRDIN DOESN'T SEEM TO HAVE FIGURED OUT YET IS THAT HE IS WALKING
INTO A TRAP IF HE FOLLOWS THE PATH HE HAS SUGGESTED AND WILL DESCRIBE IN
GREATER DETAIL TODAY HE WILL CREATE MORE MISERY FOR THE RUSSIAN PEOPLE
THERE IS SIMPLY NO WAY HE CAN HAVE A SOUND ECONOMY WHILE SUBSIDIZING THE
STATE'S INDUSTRIAL DINOSAURS AND THE STATE FARMS HIS NEW AGRICULTURE
MINISTER WANTS TO PRESERVE WHILE AT THE SAME TIME MEETING THE MILITARY'S
WEAPON DEMANDS WHEREAS MR FYODOROV AND YEGOR GAIDAR BY THE END OF LAST
YEAR HAD MANAGED TO SHARPLY REDUCE THE INFLATION RATE STOP THE DECLINE IN
INDUSTRIAL OUTPUT AND RAISE REAL INCOMES MR CHERNOMYRDIN'S PROGRAM IF
FOLLOWED WILL COLLAPSE ALL THOSE GAINS WITH THE WILLING AID OF CENTRAL BANK
CHIEF VIKTOR GERASHCHENKO MR CHERNOMYRDIN HAS AN EXCELLENT CHANCE OF
SENDING RUSSIA INTO HYPERINFLATION BEFORE MIDYEAR

MR CHERNOMYRDIN KNOWS ALL THE WRONG MOVES OF ECONOMIC POLICY AND NONE OF
THE RIGHT ONES AS INFLATION BEGINS TO RAGE HE WILL APPLY PRICE CONTROLS
AND RUSSIANS WILL BE QUEUING TO BUY BREAD AND SHOES AGAIN AT THAT POINT
THE REFORM PARTIES IN THE RUSSIAN PARLIAMENT LED BY MR GAIDAR AND THE
POPULAR MR FYODOROV WILL GO ON THE ATTACK ACCUSING MR CHERNOMYRDIN OF
DESTROYING THE PROGRESS REFORM MADE IN ITS EARLY STAGES RUSSIANS WILL BEGIN
TO SEE THE BENEFITS OF OPEN POLITICAL DEBATE SOMETHING THEY HAVE GLIMPSED
ONLY BRIEFLY IN THE PAST THEIR OWN CIRCUMSTANCES WILL BE A CLUE TO WHO IS
RIGHT AND WHO IS WRONG

BY GIVING MR CHERNOMYRDIN THE HELM AT THIS CRUCIAL JUNCTURE BORIS YELTSIN
EITHER DELIBERATELY OR UNWITTINGLY GAVE HIM THE MEANS FOR DESTROYING HIMSELF
AND THE OTHER REACTIONARY FORCES IN RUSSIA THE AGE OF MARKET ROMANTICISM
IS OVER BLUSTERED THE PRIME MINISTER LAST WEEK WHAT MR CHERNOMYRDIN
DOESN'T UNDERSTAND IS THAT THERE IS NOTHING ROMANTIC ABOUT THE MARKET IT IS
A CRUEL TASKMASTER ONE THAT LURKED IN THE SHADOWS OF EVEN THE OLD COMMAND
ECONOMY IT DESTROYED COMMUNISM AND CAN DESTROY HIM AS WELL IN THE NEW OPEN
SYSTEM MR YELTSIN WILL HAVE LITTLE CHOICE BUT TO FIRE HIM

NONE OF THIS IS TO SUGGEST THAT THE OUTER WORLD'S FEARS ARE UNJUSTIFIED
ECONOMIC ADVERSITY ALSO COULD GIVE RISE TO A NEW BURST OF REVANCHISM AS THE
REACTIONARIES DESPERATELY SEEK A RALLYING CRY RUSSIA'S NEIGHBORS HAVE SOME
REASON TO TREMBLE

BUT THE GOOD NEWS IS THAT IN TWO IMPORTANT COUNTRIES POLITICS NOW HAS
BECOME MUCH MORE OF AN OPEN BOOK IN RUSSIA THERE NOW IS PUBLIC DEBATE
JAPAN'S POLITICIANS CAN NO LONGER SUBORDINATE THE GENERAL INTEREST TO THAT
OF INDUSTRIAL AND BANKING ELITES THAT PICTURE OF CHORTLING JAPANESE
LAWMAKERS MAY SOON BECOME A COLLECTOR'S ITEM 9401240143 940124 FINANCING
BUSINESS EXPLORATION CO OF LOUISIANA INC

EXPLORATION CO OF LOUISIANA INC LAFAYETTE LA SAID IT IS OFFERING AS
MANY AS 50 MILLION COMMON SHARES AT 50 CENTS EACH THE OIL AND NATURAL GAS
COMPANY SAID IT EXPECTS THE OFFERING TO CLOSE BY FRIDAY A SPOKESWOMAN SAID
HALF OF THE PROCEEDS WOULD BE USED TO DEVELOP THE BERRY R COX OIL FIELD IN
SOUTH TEXAS AND THE OTHER HALF WOULD BE USED FOR A DRILLING PROGRAM IN
CHINA AND FOR GENERAL CORPORATE PURPOSES THE COMPANY HAS 1327 MILLION
SHARES OUTSTANDING 9401240142 940124 CLINTON SEES '95 DEFICIT SHRINKING 
TO 180 BILLION AS ECONOMY GAINS  BY JOHN CONNOR SPECIAL TO THE
WALL STREET JOURNAL

WASHINGTON THE WHITE HOUSE CITING A BRIGHTER ECONOMIC FORECAST NOW IS
PROJECTING A FISCAL 1995 BUDGET DEFICIT OF LESS THAN 180 BILLION

THE NEW DEFICIT ESTIMATE IS 10 BILLION SMALLER THAN A RECENT PUBLIC
ESTIMATE BY THE CLINTON ADMINISTRATION IT IS ALSO MUCH NARROWER THAN THE
300 BILLIONPLUS FISCAL 1995 DEFICIT FORECAST BY THE WHITE HOUSE JUST A
YEAR AGO ALTHOUGH THAT FORECAST IGNORED SPENDING CAPS IMPOSED BY THE 1990
DEFICITREDUCTION LAW

PRESIDENT CLINTON UNVEILED THE REVISED DEFICIT PROJECTION IN HIS WEEKLY
RADIO ADDRESS SATURDAY SAYING HE HAD JUST LEARNED FROM WHITE HOUSE BUDGET
DIRECTOR LEON PANETTA THAT THE DEFICIT PROJECTION FOR NEXT FISCAL YEAR IS
NOW UNDER 180 BILLION THE PRESIDENT CREDITED HIS ECONOMIC POLICIES WITH
SHRINKING THE DEFICIT SAYING THAT STEP BY STEP WE ARE REVIVING OUR
ECONOMY

FOR THE REVISED FISCAL 1995 DEFICIT ESTIMATE TO HOLD UP THE ECONOMIC
RECOVERY WILL HAVE TO STAY ON TRACK AND CONGRESS WILL HAVE TO COMPLY WITH
NEW SPENDING CEILINGS THAT WERE ENACTED LAST SUMMER THE BUDGET FOR FISCAL
1995 WHICH WILL BEGIN NEXT OCT 1 IS TO BE RELEASED FEB 7

MR PANETTA WHO NOT LONG AGO SAID THE FISCAL 1995 DEFICIT WOULD BE LESS
THAN 190 BILLION SAID IN A BRIEF STATEMENT ISSUED OVER THE WEEKEND THAT
THE DEFICIT HAS NARROWED PRIMARILY FOR TWO REASONS

THE FIRST WAS THE SPECIFIC DEFICITREDUCTION MEASURES IN THE
ADMINISTRATION'S ECONOMIC PLAN THE BUDGET DIRECTOR SAID THE SECOND WAS THE
BRIGHTER ECONOMIC FORECAST WHICH IS DIRECTLY RELATED TO THE SUCCESS OF THE
PRESIDENT'S PLAN IN REDUCING DEFICITS MAKING KEY INVESTMENTS AND EXPANDING
TRADE MARKETS

MR PANETTA PROVIDED NO DETAILS ON REVISED SPENDING AND REVENUE PROJECTIONS
OR ON THE BRIGHTER ECONOMIC FORECAST HE ALSO WOULDN'T SAY EXACTLY HOW MUCH
UNDER 180 BILLION THE FISCAL 1995 DEFICIT WOULD BE ACCORDING TO ONE WHITE
HOUSE OFFICIAL IT COULD BE AS LOW AS 175 BILLION

THE BUDGET DEFICIT HAS GONE FROM A RECORD 290 BILLION IN FISCAL 1992 TO
255 BILLION IN FISCAL 1993 SOME PRIVATESECTOR ECONOMISTS SEE IT FALLING
TO 235 BILLION OR SO IN THE CURRENT FISCAL YEAR AND PERHAPS LOWER IF
ECONOMIC GROWTH CONTINUES TO ACCELERATE

SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS SAID HE HOPES THE NEW DEFICIT
PROJECTION IS CORRECT BUT ADDED IN AN APPEARANCE ON CBS NEWS'S FACE THE
NATION YESTERDAY THAT THE RECOVERY HELPING TO PUSH THE DEFICIT LOWER BEGAN
DURING THE BUSH ADMINISTRATION 9401240141 940124 CREDIT RATINGS

PETROLEUM HEAT & POWER CO STAMFORD CONN MOODY'S INVESTORS SERVICE
INC SAID IT DOWNGRADED ITS DEBT RATING ON 50 MILLION OF THIS HEATINGOIL
DISTRIBUTOR'S SUBORDINATED NOTES DUE 2003 TO SINGLEB2 FROM SINGLEB1
MOODY'S SAID THE ACTION REFLECTS THE COMPANY'S INCREASED DEBT AND ITS
SUBSTANTIAL INCREASE IN SUBORDINATED DEBT THE COMPANY IT NOTED HAS A
LEADING POSITION IN THE HOME HEATINGOIL INDUSTRY THE COMPANY DECLINED
COMMENT 9401240140 940124 MARKETING & MEDIA PARAMOUNT UNIT WILL CUT
NUMBER OF BOOKS WITH MACMILLAN IMPRINT  BY MEG COX STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE PUBLISHING DIVISION OF PARAMOUNT COMMUNICATIONS INC SAID IT
PLANS TO SHARPLY REDUCE THE NUMBER OF BOOKS PUBLISHED UNDER THE MACMILLAN
NAME AFTER IT ACQUIRES THE COMPANY BUT WILL RETAIN A SIGNIFICANT NUMBER OF
MACMILLAN INC'S 1100 STAFFERS

PARAMOUNT'S 5528 MILLION PURCHASE OF MACMILLAN ANNOUNCED LAST NOVEMBER
IS SCHEDULED TO CLOSE NEXT MONTH ALREADY THE NATION'S LARGEST PUBLISHER
WITH MORE THAN 2 BILLION IN ANNUAL SALES AND NEARLY 9000 EMPLOYEES
PARAMOUNT PUBLISHING WILL BE STRENGTHENED BY THE MERGER IN SEVERAL
HIGHGROWTH AREAS INCLUDING REFERENCE PUBLISHING COLLEGE BOOKS AND
CHILDREN'S TITLES MACMILLAN'S REVENUE FOR THE YEAR ENDING IN MARCH IS
ESTIMATED AT ABOUT 300 MILLION

IT ISN'T CLEAR WHAT OTHER CHANGES MAY BE IN STORE FOR THE COMBINED
PUBLISHING OPERATIONS ONCE THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS
IS SETTLED BETWEEN RIVAL BIDDERS QVC NETWORK INC AND VIACOM INC THERE HAS
BEEN SOME SPECULATION THAT WHOEVER ACQUIRES PARAMOUNT MIGHT SPIN OFF OR SELL
THE PUBLISHING DIVISION BUT INSIDERS AT BOTH QVC AND VIACOM DENY THAT IS
THEIR PLAN

THE CONSOLIDATION PLAN ANNOUNCED FRIDAY BY RICHARD SNYDER PARAMOUNT
PUBLISHING'S CHAIRMAN AND JONATHAN NEWCOMB PRESIDENT PUT TO REST FOR NOW
CONCERNS THAT THERE WOULD BE MASS LAYOFFS AND CUTBACKS AT MACMILLAN THEY
DIDN'T GO THROUGH HERE WITH A MACHETE LIKE SOME PEOPLE FEARED SAID ONE
MACMILLAN EDITOR WHO REQUESTED ANONYMITY

PARAMOUNT WILL HOWEVER DISBAND MACMILLAN'S 35YEAROLD ATHENEUM UNIT
WHICH PUBLISHES 15 OR 20 HIGHBROW FICTION AND NONFICTION TITLES ANNUALLY I
THINK THERE IS INEVITABLY SOME SADNESS HERE BECAUSE ALL OF US AT MACMILLAN
FORMED A SMALL COHESIVE UNIT AND WE'RE BEING BROKEN UP AND MOVED AROUND
SAID LEE GOERNER PUBLISHER OF ATHENEUM MR GOERNER SAID HE HAS BEEN ASKED
TO STAY UNTIL SPRING TO FINISH PUBLISHING THE BOOKS HE HAS UNDER CONTRACT
I CAN UNDERSTAND WHY A HUGE COMPANY WOULDN'T WANT TO KEEP A SMALL IMPRINT
LIKE THIS HE SAID

WHAT WE ARE EXPERIENCING IS RELATIVELY LITTLE DOWNSIZING IN THE CREATIVE
AREAS WHERE PRODUCTS ARE DEVELOPED SAID JACK ROMANOS WHO HEADS CONSUMER
PUBLISHING AT PARAMOUNT WE DIDN'T BUY MACMILLAN TO MAKE IT GO AWAY
ALTHOUGH PARAMOUNT EXECUTIVES DECLINE TO ESTIMATE THE MAGNITUDE OF FINAL
STAFF CUTS SOME INSIDERS SAY THEY DON'T EXPECT IT TO BE HIGHER THAN 10 OF
THE COMBINED STAFF

MESSRS SNYDER AND NEWCOMB SAID THE MACMILLAN NAME WILL CEASE TO APPEAR ON
ADULT CONSUMER BOOKS OR COLLEGE TEXTBOOKS BUT THE MERGED REFERENCE BOOK
DIVISION INCLUDING A NUMBER OF PARAMOUNT UNITS WILL BE NAMED MACMILLAN
PUBLISHING IN MOST AREAS WHERE FUNCTIONS ARE DUPLICATED THE PARAMOUNT
EDITOR WILL RUN THE MERGED DIVISION AS IN CHILDREN'S BOOKS EVEN THOUGH
MACMILLAN'S CHILDREN'S DEPARTMENT DWARFS PARAMOUNT'S IN SIZE

THE COMBINED OUTPUT OF PARAMOUNT AND MACMILLAN CHILDREN'S DIVISIONS IS ABOUT
650 TITLES A YEAR SAID ONE EXECUTIVE BUT THAT WILL BE CUT TO ABOUT 450
TITLES A YEAR WITH THE ADDITION OF MACMILLAN'S TITLES PARAMOUNT WILL BE
ABLE TO JUSTIFY A SEPARATE SALES FORCE FOR CHILDREN'S BOOKS FOR THE FIRST
TIME

IN THE CONSUMER AREA OF FICTION AND NONFICTION WHILE THE MACMILLAN NAME
WILL DISAPPEAR PARAMOUNT SAID IT WILL PUBLISH ABOUT 60 TO 75 TITLES A YEAR
UNDER THE SCRIBNER NAME WHICH HAS A LONG TRADITION OF GOOD LITERATURE THE
ONLY OTHER FREESTANDING PUBLISHING IMPRINT TO REMAIN WILL BE FREE PRESS
KNOWN FOR NONFICTION TITLES WITH A CONSERVATIVE BENT SUCH AS ROBERT BORK'S
MEMOIRS PARAMOUNT WILL CONTINUE TO PUBLISH UNDER THE NAMES SIMON &
SCHUSTER POCKET BOOKS TOUCHSTONE AND FIRESIDE

IN COLLEGE PUBLISHING PARAMOUNT IS ALREADY A NATIONAL LEADER BUT MACMILLAN
WILL ALLOW IT TO FILL OUT OUR PORTFOLIO SAID MR SNYDER THE PARAMOUNT
PUBLISHING CHAIRMAN THEY MADE US STRONGER IN SCIENCE AND MATH AND
UPPERLEVEL COURSES WHERE WE WERE STRONGER BEFORE IN ENTRYLEVEL COURSES

THE COMBINED COLLEGE DIVISION WILL BE SO LARGE THAT PARAMOUNT CAN BUILD SIX
SPECIALIZED SALES FORCES INSTEAD OF THE TWO IT HAS NOW FOR SCIENCE AND
HUMANITIES ONE OF THE SIX DIVISIONS WILL BE IN THE AREA OF ENGLISH AS A
SECOND LANGUAGE IN WHICH PARAMOUNT WILL BECOME THE LARGEST US PUBLISHER

INDIVIDUALLY SOME EDITORS IN THE MACMILLAN COLLEGE DIVISION COMPLAIN THAT
THEIR COUNTERPARTS AT PARAMOUNT HAVE BEEN ASKING TO BE BRIEFED ON WHAT BOOKS
HAVE ALREADY BEEN SIGNED UP SO THEY COULD TAKE THEM OVER AND INDICATING
THAT THE MACMILLAN STAFFERS WOULD SOON BE OUT OF A JOB PARAMOUNT SAID IT
WASN'T AWARE OF ANY SUCH CONVERSATIONS AND THAT SUCH STATEMENTS WOULDN'T
REFLECT THE SPIRIT OF THE INTEGRATION 9401240139 940124 WESTINGHOUSE'S
4THQUARTER NET LOSS NARROWED BUT UNITS POST WEAK RESULTS  BY ERLE
NORTON STAFF REPORTER OF THE WALL STREET JOURNAL

PITTSBURGH WESTINGHOUSE ELECTRIC CORP'S FOURTHQUARTER NET LOSS NARROWED
TO 478 MILLION FROM 128 BILLION A YEAR EARLIER ALTHOUGH MANY OF ITS
UNITS POSTED WEAK RESULTS

ON A PERSHARE BASIS THE POWER GENERATION BROADCASTING AND DEFENSE
ELECTRONICS CONCERN HAD A LOSS OF 138 COMPARED WITH A YEAREARLIER LOSS
OF 374 REVENUE CLIMBED 3 TO 264 BILLION FROM 256 BILLION

THE LATEST QUARTER INCLUDED PREVIOUSLY ANNOUNCED CHARGES OF ABOUT 644
MILLION THEY INCLUDED 493 MILLION FOR LAYOFFS DIVESTITURES LEGAL
SETTLEMENTS AND AN ENVIRONMENTAL CLEANUP AND 95 MILLION FOR DISCONTINUED
OPERATIONS THE CHARGES ALSO INCLUDED 56 MILLION FOR A CHANGE IN HOW THE
COMPANY ACCOUNTS FOR POSTEMPLOYMENT BENEFITS THE YEAREARLIER PERIOD
INCLUDED A CHARGE OF 136 BILLION OR 392 A SHARE FOR DISCONTINUED
OPERATIONS

EXCLUDING THE CHARGES WESTINGHOUSE'S CONTINUING OPERATIONS EARNED 110
MILLION IN THE QUARTER UP FROM 79 MILLION A YEAR AGO

MICHAEL H JORDAN CHAIRMAN AND CHIEF EXECUTIVE CALLED THE RESULTS
DISAPPOINTING BUT SAID WE TOOK A NUMBER OF ACTIONS IN THE FOURTH
QUARTER TO IMPROVE OUR OPERATING PERFORMANCE ACCELERATE DIVESTITURE OF
NONCORE BUSINESSES AND IMPROVE OUR FINANCIAL FLEXIBILITY

WESTINGHOUSE ALSO WARNED THAT FIRSTQUARTER EARNINGS WILL BE DOWN
SUBSTANTIALLY FROM YEAREARLIER NET OF 59 MILLION OR 14 CENTS A SHARE
THE COMPANY BLAMED HIGHER PENSION EXPENSE LOWER INCOME FROM LICENSING POWER
GENERATION TECHNOLOGY OVERSEAS AND A ONETIME CHANGE IN THE WAY IT ACCOUNTS
FOR NUCLEAR FUEL REVENUE

NICHOLAS P HEYMANN AN ANALYST WITH NATWEST SECURITIES CORP ESTIMATED THE
ITEMS WILL COST ABOUT 70 MILLION ON A PRETAX BASIS HE FIGURED THE COMPANY
WILL EARN FIVE CENTS TO SIX CENTS A SHARE IN THE FIRST QUARTER

WESTINGHOUSE CLOSED AT 13625 DOWN 25 CENTS IN COMPOSITE TRADING FRIDAY
ON THE NEW YORK STOCK EXCHANGE

FOR ALL OF 1993 WESTINGHOUSE POSTED A NET LOSS OF 326 MILLION OR 107 A
SHARE COMPARED WITH A 1992 NET LOSS OF 139 BILLION OR 411 A SHARE THE
1992 RESULTS INCLUDED AN ACCOUNTING CHARGE OF 338 MILLION AND THE CHARGE
FOR DISCONTINUED OPERATIONS

EXCLUDING CHARGES WESTINGHOUSE SAID ITS 1993 EARNINGS FROM CONTINUING
OPERATIONS WERE 318 MILLION OR 76 CENTS A SHARE COMPARED WITH 357
MILLION OR 95 CENTS A SHARE IN 1992 REVENUE FELL 4 TO 888 BILLION FROM
925 BILLION

WESTINGHOUSE'S DEFENSE ELECTRONICS UNIT HAD SUBSTANTIALLY HIGHER OPERATING
PROFIT IN THE QUARTER AS SHIPMENTS CLIMBED POWER GENERATION'S OPERATING
PROFIT ROSE SLIGHTLY AND THE KNOLL GROUP FURNITURE UNIT CUT ITS OPERATING
LOSS SUBSTANTIALLY AS NORTH AMERICAN SALES ROSE

BUT WESTINGHOUSE'S BROADCASTING UNIT POSTED FLAT OPERATING PROFIT AS STRONG
RESULTS IN ITS RADIO AND SATELLITE COMMUNICATIONS BUSINESSES WERE OFFSET BY
POOR RESULTS IN TELEVISION THE ENVIRONMENTAL CLEANUP BUSINESS SAW OPERATING
PROFIT FALL SUBSTANTIALLY ON LOWER VOLUMES FALLING PRICES AT ITS WASTE
INCINERATION BUSINESS AND COST OVERRUNS AT A GERMAN UNIT 9401240138
940124 TRACKING THE ECONOMY  BY ALAN YONAN JR

THE ECONOMY SAVED A BURST OF GROWTH FOR THE FINAL QUARTER OF 1993 AS IT DID
FOR THE LAST THREE MONTHS OF 1992 A FLURRY OF CONSUMER SPENDING HOME
BUILDING AND FACTORY PRODUCTION ALL HELPED BOOST ECONOMIC GROWTH DURING LAST
YEAR'S OCTOBERDECEMBER PERIOD MANY ECONOMISTS SAY THE ECONOMY AS MEASURED
BY GROSS DOMESTIC PRODUCT GREW AT AN ANNUAL RATE OF 4 TO 6 DURING THE
FOURTH QUARTER UP FROM 29 IN THE THIRD QUARTER

THE GROWTH SURGE BRINGS BACK MEMORIES OF 1992 WHEN GDP ACCELERATED TO A
57 RATE IN THE FOURTH QUARTER BUT UNLIKE A YEAR EARLIER WHEN THE BURST
OF GROWTH QUICKLY DROPPED TO A 08 RATE IN THE FOLLOWING QUARTER ECONOMIC
STRENGTH IS SEEN AS BEING MORE FIRMLY ENTRENCHED

GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF
MANUFACTURERS SAID HE EXPECTS A COMMERCE DEPARTMENT REPORT THIS WEEK WILL
SHOW THAT GDP GREW AT A 43 RATE IN THE FOURTH QUARTER HE FORECASTS 32
GROWTH IN THE FIRST QUARTER

GROWTH IN THE FIRST QUARTER WILL DROP OFF A LITTLE BUT NOT LIKE THE
MAGNITUDE OF LAST YEAR MR RICHARDS SAID

HE SAID GDP SHOULD GROW 3 IN 1994 COMPARED WITH 28 IN 1993 AS DOMESTIC
CONSUMPTION SLOWS EXPORTS SHOULD RISE HELPING TO TAKE UP THE SLACK HE
SAID 9401240137 940124 WHO'S NEWS CAPITAL CITIES/ABC INC

CAPITAL CITIES/ABC INC NEW YORK MICHAEL C LANG 48 YEARS OLD WAS
NAMED SENIOR VICE PRESIDENT BUSINESS AFFAIRS BROADCAST OPERATIONS AND
ENGINEERING FOR THE ABC TELEVISION NETWORK GROUP OF THIS BROADCASTER A
NEWLY CREATED POSITION MR LANG MOST RECENTLY WAS VICE PRESIDENT OF THE
DIVISION ALSO WILLIAM J WILKINSON 44 WAS NAMED VICE PRESIDENT AND
EXECUTIVE ASSISTANT TO THE CHAIRMAN AT THE PARENT COMPANY MR WILKINSON
WILL CONTINUE TO SUPERVISE HUMAN RESOURCES 9401240136 940124 IBM IS
LIKELY TO POST PROFIT FOR 4TH PERIOD  BY LAURIE HAYS STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS EXPECTED TO REPORT ITS
FIRST QUARTERLY PROFIT IN MORE THAN A YEAR TOMORROW BUT SOME ANALYSTS SAID
IT IS TOO SOON TO CONCLUDE THAT A TURNAROUND IS AT HAND FOR THE AILING
COMPUTER CONCERN

INSTEAD MASSIVE COSTCUTTING AND SEASONALLY STRONG FOURTHQUARTER SALES ARE
LIKELY TO BOOST PROFIT AS HIGH AS 80 CENTS A SHARE OR 480 MILLION ON
REVENUE OF 20 BILLION THE HIGHEST ESTIMATES FOR THE QUARTER WOULD LEAVE
IBM WITH A SMALL OPERATING PROFIT OF ABOUT 2 MILLION FOR THE YEAR BUT A
NET LOSS OF ABOUT 8 BILLION AFTER RESTRUCTURING CHARGES

FOR THE 1992 FOURTH QUARTER IBM REPORTED AN OPERATING LOSS OF EIGHT CENTS A
SHARE RESTRUCTURING CHARGES DRAGGED THE BOTTOMLINE LOSS TO 957 A SHARE

READING A BIG FOURTH QUARTER AS A SIGN OF RECOVERY WOULD BE A DANGEROUS
THING TO DO SAID STEPHEN SMITH AN ANALYST FOR PAINEWEBBER
TRADITIONALLY IBM DOES 30 OF ITS BUSINESS IN THE LAST QUARTER OF THE
YEAR

DEAN WITTER'S JAY STEVENS EXPECTS IBM TO REPORT FOURTHQUARTER PROFIT OF 60
CENTS OR 346 MILLION AND AN OPERATING LOSS FOR THE YEAR OF 57 MILLION
AFTER CHARGES THE NET LOSS WOULD BE ABOUT 8 BILLION ACCORDING TO HIS
ESTIMATES

BUT MR STEVENS SAYS HE'S ENCOURAGED BY RECENT ACTIONS AT IBM WE THINK
THIS IS THE BEGINNING OF A LONGTERM TURN FOR THE COMPANY HE SAID
EXPENSES HAVE COME DOWN RAPIDLY AND TRANSITIONS ARE UNDER WAY IN THE PROFIT
LINE

HE CITES IBM'S PLAN THIS YEAR TO LAUNCH ITS NEW POWERPC PRODUCTS WHICH ARE
BASED ON A POWERFUL NEW CHIP TRANSITIONS UNDER WAY TO REDUCE MANUFACTURING
COSTS OF MAINFRAMES AND IBM'S INDICATIONS THAT IT IS GOING TO MAKE A BIG
PUSH INTO CONSUMER MARKETS

BUT EVEN MR STEVENS CONCEDED THERE'S A WAITANDSEE PERIOD AHEAD FOR IBM

WHILE IBM HAS DONE AN IMPRESSIVE JOB OF COST CUTTING INCLUDING TAKING A
MASSIVE SECONDQUARTER CHARGE OF 89 BILLION TO REDUCE IBM'S ANNUAL
EXPENSES BY 525 BILLION IT STILL FACES THE LONGTERM PROBLEM OF GROWING
REVENUE IN AN INDUSTRY THAT'S IN A WORLDWIDE RECESSION AFTER EXPLOSIVE
EXPANSION IN THE 1980S THE TECHNOLOGY INDUSTRY IS DOWN TO SINGLEDIGIT
GROWTH PARTLY BECAUSE OF ECONOMIC DIFFICULTIES IN JAPAN AND EUROPE

DIGITAL EQUIPMENT CORP'S SURPRISING LOSS REPORTED LAST WEEK FOR THE SECOND
FISCAL QUARTER WAS A BAD SIGN SHOWING HOW DIFFICULT RECOVERIES CAN BE
IBM'S STOCK SLID ON DIGITAL'S NEWS AFTER ENJOYING A BRIEF RALLY THAT TOOK IT
TO 60 EARLIER THIS YEAR FRIDAY IT CLOSED UNCHANGED AT 5525 IN NEW YORK
STOCK EXCHANGE COMPOSITE TRADING

IBM'S CHALLENGE IS TO FIND HIGHMARGIN ITEMS TO MAKE UP FOR DECLINING
PROFITS IN THE MAINFRAME DIVISION ANALYSTS ARE EXPECTING A FURTHER DROP IN
IBM'S PROFIT MARGINS IN THE FOURTH QUARTER TO 36 FROM 38 IN THE THIRD
QUARTER JUST TWO YEARS AGO THE COMPANY HAD PROFIT MARGINS OF 55

SO FAR IBM IS FARING BETTER ON THE COST SIDE OF THE LEDGER BUT LONG TERM
YOU CAN'T RESTORE IBM'S LUSTER BY GOING THE COSTCUTTING ROUTE ALONE SAYS
ULRIC WEIL A FORMER IBM EMPLOYEE WHO'S NOW A WASHINGTONBASED CONSULTANT
9401240135 940124 CHINA TO EXPAND FOREIGN BANKS' RIGHTS AS US HELPS
WITH ECONOMIC MANAGING  BY KENNETH H BACON STAFF REPORTER OF THE
WALL STREET JOURNAL

BEIJING CHINA AGREED TO GRANT EXPANDED OPERATING RIGHTS TO FOREIGN BANKS
AND THE US SAID IT WILL HELP CHINA IMPROVE ITS TOOLS FOR MANAGING ITS
MASSIVE ECONOMY

TREASURY SECRETARY LLOYD BENTSEN AND FINANCE MINISTER LIU ZHONGLI SAID THE
ACCORDS REFLECT A LARGER COMMITMENT BY THE TWO COUNTRIES TO IMPROVE THEIR
TRADE AND INVESTMENT TIES THEY SAID ONE FOCUS OF CONTINUING DISCUSSIONS BY
THE SINOAMERICAN JOINT ECONOMIC COMMITTEE WILL BE FINDING WAYS TO KEEP
CHINA'S ECONOMY GROWING AT A STABLE PREDICTABLE RATEA GOAL THAT'S
IMPORTANT FOR REGIONAL AND WORLD TRADE AS WELL AS FOR CHINA ITSELF

THROUGHOUT THREE DAYS OF MEETINGS WITH MR BENTSEN HERE CHINESE OFFICIALS
SHOWED A STRONG APPETITE FOR LEARNING HOW TO MAKE MONETARY AND FISCAL POLICY
MORE EFFECTIVE IN MAINTAINING CONSISTENT NONINFLATIONARY GROWTH THE
CHINESE ECONOMY HAS GROWN AT AN ANNUAL RATE OF 95 IN THE LAST DECADE BUT
YEARTOYEAR ACTIVITY HAS BEEN VOLATILE SWINGING FROM 10 GROWTH IN 1988 TO
45 IN 1990 AND AS MUCH AS 13 LAST YEAR THESE WIDE SWINGS HAVE
COMPLICATED PLANNING EFFORTS

IN ADDITION OFFICIALS WORRY THAT THE CHINESE ECONOMY IS OVERHEATING
INFLATION IS RUNNING AT AN ANNUAL RATE OF 20 IN THE CITIES AND 13 IN RURAL
AREAS BOTH MERCHANTS AND CONSUMERS ARE COMPLAINING ABOUT RISING PRICES BUT
THE GOVERNMENT WORRIED ABOUT JACKING UP INTEREST RATES HAS FOUND IT
DIFFICULT TO REIN IN CREDIT ENOUGH TO CURB INFLATION US AND WORLD BANK
OFFICIALS WORRY THAT INFLATION COULD WEAKEN CHINA'S COMMITMENT TO ECONOMIC
REFORMS DESIGNED TO PRODUCE A MORE MARKETORIENTED ECONOMY

FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN PLANS TO VISIT CHINA TO
DISCUSS A WIDE RANGE OF MONETARY POLICY ISSUES AND THE FED IS PREPARED TO
PROVIDE TECHNICAL ASSISTANCE IN ADDITION INTERNAL REVENUE SERVICE
OFFICIALS WILL ADVISE CHINA ON THE DEVELOPMENT OF A MOREEFFICIENT
TAXCOLLECTION SYSTEM BECAUSE OF THE WAY THAT CHINA'S TAX REVENUES FLOW UP
FROM THE PROVINCES REVENUES RECEIVED BY THE CENTRAL GOVERNMENT HAVE FALLEN
IN THE PAST 15 YEARS TO ABOUT 18 OF GROSS DOMESTIC PRODUCT FROM 36 AS A
RESULT THE BEIJING GOVERNMENT LACKS THE REVENUES IT NEEDS

IN THE BANKING AREA CHINA SAID IT WILL ALLOW FOREIGN BANKS TO EXPAND THEIR
BRANCH NETWORKS BRANCHING ALREADY IS PERMITTED IN 13 CITIES AND ECONOMIC
ZONES OUTSIDE THESE ZONES BANKS CAN OPEN REPRESENTATIVE OFFICES AS LONG AS
THEY DON'T ENGAGE IN PROFITMAKING ACTIVITIES CHINA WILL ADD CITIES WHERE
FOREIGN BANKS CAN OPEN BRANCHES THE SCOPE AND TIMING OF THE EXPANSION STILL
MUST BE WORKED OUT

CHINA ALSO AGREED TO EXPERIMENT WITH ALLOWING BANKS TO TRANSACT BUSINESS IN
RENMINBI THE CHINESE CURRENCY THIS COULD ALLOW BANKS TO DEVELOP RETAIL
BANKING FRANCHISES THAT LEND TO SMALL BUSINESSES AND MAKE AUTO AND MORTGAGE
LOANS

IN ANOTHER EFFORT TO HELP BEIJING MODERNIZE ITS ECONOMY THE US SECURITIES
AND EXCHANGE COMMISSION IS PREPARING TO PROVIDE ADVICE ON HOW TO REGULATE
SECURITIES MARKETS 9401240134 940124 USX EARNINGS AIDED IN FOURTH PERIOD
 BY DEMAND FOR STEEL SPECIAL GAINS  BY ERLE NORTON STAFF
REPORTER OF THE WALL STREET JOURNAL

PITTSBURGH USX CORP AIDED BY STRONG DEMAND FOR STEEL AND BY SPECIAL
GAINS EARNED 37 MILLION COMPARED WITH A YEARAGO FOURTHQUARTER LOSS OF
343 MILLION

THE STEEL OIL AND NATURAL GAS CONCERN SAID SALES ROSE ALMOST 1 TO 46
BILLION FROM 458 BILLION

USX'S IMPROVEMENT WAS LED BY ITS US STEEL GROUP WHICH TOOK ADVANTAGE OF
HIGHER DEMAND AND PRICES IT EARNED 124 MILLION OR 167 A SHARE COMPARED
WITH A LOSS OF 225 MILLION OR 380 A SHARE IN THE YEAREARLIER QUARTER

THE LATEST PERIOD WAS BOLSTERED BY GAINS OF ABOUT 83 MILLION ON AN
AFTERTAX BASIS THEY INCLUDED THE REVERSAL OF LITIGATION CHARGES AND INCOME
FROM A SUBORDINATED NOTE FROM THE 1988 SALE OF TRANSTAR INC THE YEARAGO
PERIOD INCLUDED AN AFTERTAX CHARGE OF 166 MILLION FOR ITEMS INCLUDING
LEGAL AND ENVIRONMENTAL ACCRUALS

SALES JUMPED 28 TO 155 BILLION FROM 121 BILLION SHIPMENTS CLIMBED 17
TO 27 MILLION NET TONS FROM 23 MILLION NET TONS AND US STEEL'S MILLS
RAN AT 98 OF CAPACITY

IT'S A MANAGEMENT FEAT TO RUN AT 98 CAPACITY SAID JOHN C TUMAZOS AN
ANALYST WITH DONALDSON LUFKIN & JENRETTE A 98 OPERATING RATE PERMITS THEM
TO MAKE MORE STEEL SHIP MORE STEEL HAVE LOWER COSTS AND HIGHER REVENUE

BUT US STEEL ALSO SHIPPED MORE NONPRIME OR LOWERQUALITY STEEL IN THE
PERIOD PRODUCING A LOWER OPERATING PROFIT PER TON THAN EXPECTED SAID
ANTHONY B RIZZUTO AN ANALYST WITH BEAR STEARNS & CO HE HAD PROJECTED A
25 PROFIT PER TON BUT THE FIGURE CAME IN AT 18 THOMAS M VAN LEEUWEN AN
ANALYST WITH CS FIRST BOSTON SAID THE COMPANY WAS CLEARING OUT INVENTORY

STILL US STEEL'S EARNINGS ARE AN INDICATION THAT THERE'S NO QUESTION
THAT THE STEEL INDUSTRY HAS TURNED THE CORNER AND THAT THE OUTLOOK CONTINUES
TO BE BRIGHT SAID MR VAN LEEUWEN

IN A STATEMENT USX CHAIRMAN CHARLES A CORRY CONCURRED SAYING
FIRSTQUARTER ORDERS ARE AT HIGH LEVELS FLATROLLED MARKETS KEY TO US
STEEL'S COMMERCIAL STRATEGIES REMAIN STRONG MOST NOTABLY AUTOMOTIVE HE
SAID CONSTRUCTION APPLIANCE AND TINMILL MARKETS ALSO REMAIN STRONG

WHILE US STEEL ENJOYED HIGHER PRICES USX'S MARATHON AND DELHI UNITS WERE
HAMPERED BY LOW PRICES FOR OIL AND NATURAL GAS LIQUIDS RESPECTIVELY

THE LOW PRICES FORCED MARATHON TO TAKE AN INVENTORY MARKET VALUATION RESERVE
OF 187 MILLION ON A PRETAX BASIS IN THE PERIOD LARGER THAN THE 98 MILLION
RESERVE IN THE YEAREARLIER PERIOD INCLUDING OTHER CHARGES AND GAINS WHICH
IN TOTAL CUT NET INCOME BY 117 MILLION MARATHON RECORDED A NET LOSS OF 88
MILLION OR 31 CENTS A SHARE COMPARED WITH A LOSS OF 120 MILLION OR 42
CENTS A SHARE IN 1992'S FOURTH QUARTER THE YEAREARLIER NET INCLUDED THE
INVENTORY VALUATION RESERVE AND OTHER CHARGES AND GAINS TOTALING AN
AFTERTAX NET CHARGE OF 62 MILLION SALES FELL NEARLY 10 TO 292 BILLION
FROM 324 BILLION

THE DROP IN OIL PRICES CLEARLY TOOK ITS TOLL BUT IT WAS MADE UP LARGELY BY
BETTER REFINING MARGINS SAID ROBIN SHOEMAKER AN ANALYST WITH LEHMAN
BROTHERS THE STORY OF 1993 WAS A HUGE IMPROVEMENT IN THE REFINING AND
MARKETING BUSINESS

INDEED MARATHON SAID OPERATING INCOME FROM REFINING MARKETING AND
TRANSPORTATION REACHED 111 MILLION IN THE QUARTER UP SHARPLY FROM 3
MILLION A YEAR AGO THE IMPROVEMENT WAS SPURRED BY HIGHER REFINED PRODUCT
MARGINS REFLECTING LOWER CRUDE COSTS STRONGER RETAIL MARGINS AND DECREASED
REFINERY MAINTENANCE COSTS THE COMPANY SAID

MEANWHILE DELHI GROUP USX'S NATURAL GAS SUBSIDIARY EARNED 21 MILLION
OR 15 CENTS A SHARE IN THE FOURTH QUARTER DOWN FROM 31 MILLION OR 22
CENTS A SHARE A YEAR AGO SALES CLIMBED NEARLY 5 TO 1435 MILLION FROM
1369 MILLION

DELHI'S RESULTS WERE HOBBLED BY LOWER AVERAGE PRICES AND VOLUMES FOR NATURAL
GAS LIQUIDS SUCH AS PROPANE AND BUTANE AND A FALL IN NATURAL GAS
TRANSPORTATION MARGINS AND VOLUMES 9401240133 940124 PRUDENTIAL UNIT 
HAS SETTLEMENT ON PARTNERSHIPS  BY MICHAEL SICONOLFI STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK ABOUT 115000 INVESTORS WHO BOUGHT PRUDENTIAL SECURITIES INC
ENERGY LIMITED PARTNERSHIPS COULD RECEIVE CHECKS AS EARLY AS APRIL FROM A
907 MILLION SETTLEMENT WITH THE FIRM

A FEDERAL JUDGE IN NEW ORLEANS ON FRIDAY APPROVED THE SETTLEMENT IN A
CLASSACTION SUIT THAT ACCUSED THE BIG BROKERAGE FIRM OF MISLEADING
INVESTORS ON THE REWARDS AND PITFALLS OF 145 BILLION IN 35 OIL AND GAS
PARTNERSHIPS WHICH HAVE SLUMPED TO HALF THEIR VALUE

BARRING AN APPEAL THE SETTLEMENT CAPS ONE OF THE MOST CLOSELY WATCHED COURT
CASES INVOLVING SMALL INVESTORS ON WALL STREET THOUGH THE INVESTORS IN MANY
CASES WON'T NEARLY RECEIVE ALL THEIR MONEY BACK AND THE JUDGE SUGGESTED
THEY SHOULD HAVE GOTTEN MORE THEY FARED BETTER THAN THE FEW PENNIES ON
THE DOLLAR RECEIVED BY PRUDENTIAL INVESTORS IN A 1991 SETTLEMENT INVOLVING
VMS REALTY PARTNERS PARTNERSHIPS

MORE IMPORTANT FOR THE INVESTORS THE SETTLEMENT PROMISES TO END THE
THREEYEAROLD CASE AND FINALLY RETURN SOME OF THEIR ORIGINAL OUTLAY ON THE
PARTNERSHIPS FEDERAL JUDGE MARCEL LIVAUDAIS JR WHO APPROVED THE ACCORD
SAID HE HAD RECEIVED REAMS OF LETTERS FROM ELDERLY INVESTORS WHO HAD
IMPLORED HIM TO SIGN OFF ON THE DEAL

THEY SAY I DON'T WANT TO WAIT ANOTHER FIVE YEARS I WANT MY MONEY NOW'
THE JUDGE SAID MY CONCERN IS POSSIBLY FOR THOSE WHO WANT TO OPT IN

ON THE SURFACE THE ENERGYPARTNERSHIP SETTLEMENT COMES TO JUST EIGHT CENTS
ON THE DOLLAR HOW MUCH INVESTORS RECEIVE WILL VARY WIDELY FROM PARTNERSHIP
TO PARTNERSHIP DEPENDING ON PERFORMANCE

MORE BROADLY HOWEVER THE SETTLEMENT BRINGS TO 124 BILLION OR AN AVERAGE
OF 85 CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR
THEIR ORIGINAL 145 BILLION OUTLAY THAT'S BECAUSE INVESTORS HAVE ALREADY
RECEIVED 655 MILLION IN DISTRIBUTIONS PLUS 491 MILLION FROM THE SALE OF
THE PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM CO A MIDLAND TEXAS OIL
AND GAS COMPANY

THE SETTLEMENT HAS TO BE VIEWED IN THE PERSPECTIVE OF THE SALE WE WOULD
NEVER HAVE ENTERTAINED THE SETTLEMENT BUT FOR THE DEAL IN JUNE WITH PARKER
& PARSLEY SAID GEORGE RIESS A NEW ORLEANS LAWYER FOR ABOUT 150 PLAINTIFFS
WHO ENDORSED THE ACCORD THAT MAKES IT VERY FAIR AND ADEQUATE AND
REASONABLE

STUART GOLDBERG THE SETTLEMENT'S MAJOR OBJECTOR HAD TOLD THE JUDGE THAT
INVESTORS OUGHT TO RECEIVE 780 MILLION DURING A THREEDAY HEARING MR
GOLDBERG PRESENTED EVIDENCE IN A BID TO PROVE THAT PRUDENTIAL HAD DECEIVED
INVESTORS BY AMONG OTHER THINGS BORROWING TO INFLATE DISTRIBUTIONS

ON FRIDAY WILLIAM JORDAN A FLORIDA STATE UNIVERSITY ACCOUNTING PROFESSOR
TESTIFIED THAT PRUDENTIAL MISLED INVESTORS BY FAILING TO DISCLOSE IN
PROSPECTUSES CERTAIN BORROWINGS WHICH WERE USED TO HIDE THE PARTNERSHIPS'
POOR PERFORMANCE MR GOLDBERG COULDN'T BE REACHED TO COMMENT ANY APPEAL
MUST BE FILED WITHIN 30 DAYS

JUDGE LIVAUDAIS WHO SITS ON THE US DISTRICT COURT FOR THE EASTERN
DISTRICT OF LOUISIANA FOR HIS PART SAID HE HAD BOUGHT INVESTMENTS OVER
TIME HIMSELF AND NEVER BOTHERED TO READ A PROSPECTUS NO ONE'S EVER TOLD ME
THEY WERE MISLED BY THE PROSPECTUS THE JUDGE SAID I HAVE NO KNOWLEDGE OF
ANYONE EVER RELYING ON ONE A PRINCIPAL CLAIM OF PLAINTIFFS WAS THAT THEY
WERE MISLED BY THE PRUDENTIAL SALES FORCE

THROUGHOUT THE HEARING PRUDENTIAL INSISTED THAT THE LOSSES STEMMED SOLELY
FROM AN UNEXPECTED PLUNGE IN OIL AND GAS PRICES IN A STATEMENT HARDWICK
SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE SAID WE ARE
VERY PLEASED TO HAVE ACHIEVED ANOTHER IMPORTANT STEP IN PUTTING THE
PARTNERSHIP PROBLEMS OF THE '80S BEHIND US

JUDGE LIVAUDAIS SURPRISED OBSERVERS BY RULING FROM THE BENCH FRIDAY
IMMEDIATELY FOLLOWING THE END OF TESTIMONY AND FINAL ARGUMENTS HE HAD BEEN
EXPECTED TO REQUEST BRIEFS AND MAKE A RULING NEXT WEEK DESPITE THE EVIDENCE
BROUGHT BY MR GOLDBERG SECURITIES LAWYERS WIDELY EXPECTED JUDGE LIVAUDAIS
TO AGREE TO THE ACCORD THANKS PARTLY TO THE ENDORSEMENT OF SEVERAL
PLAINTIFFS' LAWYERS WHO LAST YEAR OBJECTED TO AN EARLIER SETTLEMENT OFFER BY
PRUDENTIAL

THERE WAS INCENTIVE FOR PLAINTIFF LAWYERS TO SETTLE OF COURSE THEY STAND
TO RECEIVE AS MUCH AS 27 MILLION IN LEGAL FEES THIS MEANS INVESTORS
TECHNICALLY END UP WITH A TOTAL OF ROUGHLY 65 MILLION FROM THE ACCORD
WHICH WILL BE DOLED OUT BY APRIL OR MAY PLAINTIFFS' LAWYERS SAY LETTERS
CONFIRMING INVESTORS' HOLDINGS ARE EXPECTED TO BE MAILED WITHIN THREE WEEKS
IF THERE'S NO APPEAL

IN ITS EARLIER PROPOSAL PRUDENTIAL OFFERED TO PAY INVESTORS 37 MILLION IN
CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM IN FEBRUARY
JUDGE LIVAUDAIS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE ORIGINAL
PRUDENTIAL OFFER AND SAID MORE DATA WERE NECESSARY BEFORE HE COULD RULE ON
IT IN APRIL PRUDENTIAL SAID IT WOULD WITHDRAW THE OFFER TO FIRST ARRANGE A
SALE OF THE PARTNERSHIP ASSETS

AS PART OF THE CURRENT ACCORD PRUDENTIAL AGREED TO PAY 120 MILLION TO
INVESTORS BUT THE SETTLEMENT AMOUNT EFFECTIVELY WAS KNOCKED DOWN TO 907
MILLION BECAUSE NEARLY 16000 INVESTORS DECIDED TO EXCLUDE THEMSELVES FROM
THE DEAL

THOSE INVESTORS WHO DECIDED TO OPT OUT NOW CAN TRY TO SNATCH A SHARE OF AN
OPENENDED REPARATIONS FUND SET UP BY THE PRUDENTIAL INSURANCE CO OF
AMERICA UNIT AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE
REGULATORS IF INVESTORS DON'T LIKE THE SETTLEMENT OFFERED FROM THE
REPARATIONS FUND THEY CAN STILL FILE A PRIVATE ARBITRATION OR LEGAL CLAIM

BUT A MAJOR ADVANTAGE FOR INVESTORS OF PRUDENTIAL'S ACCORD WITH REGULATORS
IS THAT IT WAIVES THE STATUTEOFLIMITATIONS FOR BRINGING A CLAIM A MAJOR
HURDLE IN COURT OR ARBITRATION CASES FOR PRUDENTIAL THE 90 MILLION
SETTLEMENT IS APPLIED TOWARD THE REPARATIONS FUND WHICH WAS SET BY
REGULATORS AS BEING AT LEAST 330 MILLION 9401240132 940124 BUSINESS
BRIEF INTERNATIONAL GAMING MANAGEMENT AGREEMENT IS SET TO ACQUIRE 
REMAINING STAKE IN CASINO

INTERNATIONAL GAMING MANAGEMENT INC SAID IT AGREED TO ACQUIRE THE REMAINING
50 STAKE IN SPLASH CASINO FROM CASINO RIVER VESSELS INC MIDAMERICA
INVESTMENTS INC AND CASINO CONSULTANTS INC IN A TRANSACTION VALUED AT 58
MILLION

THE MINNEAPOLIS COMPANY WHICH SELLS AND LEASES GAMING MACHINES PREVIOUSLY
ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE AN INITIAL 50 STAKE IN
SPLASH CASINO

INTERNATIONAL GAMING SAID THE TRANSACTION IS SUBJECT TO A NUMBER OF
CONDITIONS INCLUDING OBTAINING NECESSARY FINANCING AND THE APPROVAL OF THE
MISSISSIPPI GAMING COMMISSION

THE SPLASH CASINO IS AT THE ENTRANCE TO MHOON LANDING IN TUNICA COUNTY
MISS 35 MILES SOUTH OF MEMPHIS TENN IT HAS 635 SLOT MACHINES AND 36
GAMBLING TABLES FOR ITS FIRST YEAR OF OPERATION ENDED OCT 19 1993 THE
CASINO HAD 150 MILLION IN REVENUE 9401240131 940124 TECHNOLOGY &
MEDICINE GENERAL INSTRUMENT'S SHARES DECLINE 42 ON DELAY IN BIG
ORDER

NEW YORK GENERAL INSTRUMENT CORP SHARES DROPPED 250 ON HEAVY TRADING
FOLLOWING REPORTS THAT A MAJOR ORDER FOR ITS CABLE CONVERTERS BY
TELECOMMUNICATIONS INC HAS BEEN DELAYED

IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING GENERAL INSTRUMENT SHARES FELL
42 TO 57375 ON VOLUME OF 23 MILLION SHARES ALMOST FIVE TIMES AVERAGE
VOLUME

THE PLUNGE FOLLOWED A REPORT IN THIS NEWSPAPER THAT TCI WHICH HAD PLANNED
TO DEPLOY THE NEW BOXES IN EARLY 1994 WOULD WAIT UNTIL LATE 1994 OR EARLY
1995 TO ROLL THEM OUT BECAUSE TECHNICAL STANDARDS HAD NOT BEEN FINALIZED BY
THE MOVING PICTURE EXPERTS GROUP

THE NEW CONVERTER BOXES INCORPORATE A NEW TECHNOLOGY KNOWN AS DIGITAL
COMPRESSION WHICH VASTLY INCREASES CHANNEL CAPACITY AND ARE A CRITICAL
LINK TO PROVIDING SUBSCRIBERS WITH MOVIES ON DEMAND AND OTHER INTERACTIVE
SERVICES

COMPANY OFFICIALS SAID THE DELAY WASN'T NEW AND THAT BOTH GENERAL INSTRUMENT
AND TCI HAVE BEEN OPERATING UNDER THE REVISED SCHEDULE FOR MANY MONTHS
THEY ADDED THAT ANALYSTS FOLLOWING THE COMPANY WERE TOLD OF THE NEW DELIVERY
SCHEDULE IN A CONFERENCE CALL IN OCTOBER HOWEVER OFFICIALS DIDN'T MENTION
THE PREVIOUS ANNOUNCEMENT WHEN CONTACTED LAST WEEK AND NEITHER COMPANY MADE
NEWS OF THE DELAY PUBLIC

A SPOKESMAN FOR TCI SAID WE ANTICIPATE MAKING UP THE DELAY WHEN WE DEPLOY
THESE BOXES LATER THIS YEAR IN 1995 AND IN 1996 WE DON'T THINK THIS IS A
SIGNIFICANT SETBACK 9401240130 940124 GENERAL MOTORS UNIT TO ACQUIRE
20 STAKE IN VIDEO LOTTERY FIRM

DALLAS ELECTRONIC DATA SYSTEMS CORP ENTERING THE GAMBLING BUSINESS FOR
THE FIRST TIME AGREED TO ACQUIRE A STAKE IN VIDEO LOTTERY TECHNOLOGIES INC
FOR 676 MILLION

AS PART OF ITS AGREEMENT WITH VIDEO LOTTERY DALLASBASED EDS IS TO MANAGE
THE COMPUTER SYSTEMS THAT THE BOZEMAN MONT COMPANY SUPPLIES TO STATE
LOTTERIES ABOUT 600 VIDEO LOTTERY WORKERS WILL BECOME EDS EMPLOYEES THE
COMPUTERSERVICES CONCERN A UNIT OF GENERAL MOTORS CORP WILL ALSO
COLLABORATE IN VIDEO LOTTERY'S DEVELOPMENT OF LOTTERY COMPUTER SYSTEMS

THE INVESTMENT BY EDS AMOUNTING TO ABOUT A 20 STAKE IN VIDEO LOTTERY WILL
CONSIST OF CONVERTIBLE PREFERRED AND COMMON STOCK FOR WHICH EDS AGREED TO
PAY 2750 A SHARE IN NASDAQ STOCK MARKET TRADING FRIDAY VIDEO LOTTERY
SHARES JUMPED 150 OR 76 TO 2125 GM SHARES LINKED TO EDS ROSE 75
CENTS TO 2925

EDS'S MOVE UNUSUAL FOR A COMPANY WHOSE CUSTOMERS COME LARGELY FROM THE
RANKS OF BIG CORPORATIONS COULD LEND STABILITY TO VIDEO LOTTERY IN OCTOBER
1992 LARRY LIPPON RESIGNED AS VIDEO LOTTERY'S CHAIRMAN AND CHIEF EXECUTIVE
BECAUSE OF AN INQUIRY THAT LINKED HIM TO TWO CRIMINALS

THE PROCEEDS FROM EDS'S INVESTMENT WILL ALLOW VIDEO LOTTERY TO REACQUIRE
THROUGH AN INVESTMENT GROUP ACTING AS AN INTERMEDIARY THE BULK OF MR
LIPPON'S REMAINING STAKE IN THE COMPANY AFTER RESIGNING MR LIPPON HAD
GIVEN THE INVESTMENT GROUP AN OPTION TO BUY THE SHARES 9401240129 940124
MADDEN LEAVES CBS FOR FOOTBALL ON FOX

NEW YORK CBS INC SPORTS COMMENTATOR JOHN MADDEN WILL JOIN NEWS CORP'S
FOX NETWORK GIVING THE PREVIOUSLY SPORTSLESS FOX INSTANT CREDIBILITY WHEN
IT TAKES OVER NATIONAL FOOTBALL LEAGUE BROADCASTS IN THE FALL

MR MADDEN'S SALARY IS 30 MILLION OVER FOUR YEARS ACCORDING TO AN
EXECUTIVE FAMILIAR WITH THE SITUATION

IN ADDITION FOX IS EXPECTED TO ANNOUNCE TODAY THAT KARDTV IN MONROE LA
WILL BECOME A FOX AFFILIATE ON APRIL 17 THE STATION IS CURRENTLY AN
AFFILIATE OF CAPITAL CITIES/ABC INC'S ABC NETWORK FOX SAID WHEN IT
ACQUIRED THE NFL RIGHTS THAT IT HOPED TO USE THEM TO LURE AFFILIATES FOX
LACKS AFFILIATES IN ABOUT 50 CITIES

IN DECEMBER FOX OUTBID CBS FOR THE NFL PACKAGE PAYING 158 BILLION OVER
FOUR YEARS FOR THE NFL'S NATIONAL FOOTBALL CONFERENCE GAMES CBS HAD
BROADCAST PRO FOOTBALL FOR 38 YEARS

ANOTHER CBS FOOTBALL COMMENTATOR PAT SUMMERALL WILL JOIN MR MADDEN AT
FOX FOX AND CBS DECLINED TO COMMENT 9401240128 940124 WHO'S NEWS TIG
HOLDINGS INC

TIG HOLDINGS INC NEW YORK MICHAEL R BLOOMBERG AND WILLIAM W PRIEST
JR WERE ELECTED DIRECTORS OF THIS INSURANCE HOLDING COMPANY FILLING
VACANCIES ON THE SEVENMEMBER BOARD MR BLOOMBERG 51 YEARS OLD IS
PRESIDENT OF BLOOMBERG LIMITED PARTNERSHIP A PROVIDER OF FINANCIAL MARKET
INFORMATION AND BUSINESS NEWS MR PRIEST 52 IS CHIEF EXECUTIVE OFFICER
AND MANAGING DIRECTOR OF BEA ASSOCIATES AN INVESTMENT COUNSELING FIRM
9401240127 940124 PLAYERS INTERNATIONAL APPROVAL

LAKE CHARLES LA PLAYERS INTERNATIONAL INC SAID IT RECEIVED APPROVAL
FROM THE CITY OF MARYLAND HEIGHTS MO TO DEVELOP A RIVERBOAT CASINO
COMPLEX

THE COMPANY ALSO SAID IT HAS APPLIED TO THE MISSOURI GAMING COMMISSION FOR A
LICENSE TO OWN AND OPERATE A RIVERBOAT CASINO AND IT IS SEEKING OTHER
APPROVALS FOR THE DEVELOPMENT SITE UPON COMPLETION THE PROPOSED FACILITY
WILL BE THE THIRD RIVERBOAT CASINO DEVELOPED AND OPERATED BY THE COMPANY

PLAYERS INTERNATIONAL IS A DEVELOPER AND OPERATOR OF RIVERBOAT CASINOS THAT
OWNS AND OPERATES A FACILITY AT MERV GRIFFIN'S LANDING ON THE OHIO RIVER IN
METROPOLIS ILL AND IN LAKE CHARLES 9401240126 940124 POLITICS &
POLICY REVOLVING DOOR BETWEEN CONGRESS AND LOBBYISTS SPINS ON DESPITE
YEARLONG COOLINGOFF PERIOD  BY JACKIE CALMES STAFF REPORTER OF
THE WALL STREET JOURNAL

WASHINGTON AS MEMBERS OF CONGRESS RETURN TO WORK NEXT WEEK THEY'LL BE
HEARING FROM SOME OLD FRIENDS THE GAG IS OFF FOR THE MANY EXLAWMAKERS WHO
TURNED TO LOBBYING LAST YEAR

THE GROUP THAT DEPARTED AFTER 1992 WAS THE FIRST TO BE SUBJECT TO A ONEYEAR
BAN ON LOBBYING THEIR FORMER COLLEAGUES A COOLINGOFF PERIOD TO SQUELCH
THE IMAGES OF POLITICIANS INSTANTLY CASHING IN ON THEIR NOTSOOLD CONTACTS
AND OF CORPORATIONS BUYING ACCESS THE ONEYEAR BAN IS A VERY GOOD THING A
VERY HEALTHY THING SAYS FORMER REP THOMAS DOWNEY A NEW YORK DEMOCRAT WHO
CAME TO THE HOUSE IN THE POSTWATERGATE REFORM CLASS OF 1974 AND WHO'S NOW
SUBJECT TO THE 1989 ETHICS LAW IT'S GOOD FOR THE PUBLIC TO THINK THERE'S
NOT A REVOLVING DOOR

BUT THERE IS A REVOLVING DOOR AND LONG BEFORE THE BAN EXPIRED THIS MONTH
FOR THE EXMEMBERS WHO SERVED UNTIL 1993 THE EVIDENCE WAS CLEAR THAT ITS
SPINNING BETWEEN CONGRESS AND THE LOBBYING RANKS HAS HARDLY SLOWED LET
ALONE STOPPED MORE THAN A QUARTER OF THE 435MEMBER HOUSE LEFT AFTER 1992
BECAUSE OF RETIREMENTS AND DEFEATS A 44YEAR HIGH AND ACCORDING TO CHECKS
OF THEIR WHEREABOUTS ABOUT FOUR OUT OF 10 OPENED OFFICES OR JOINED MAJOR
LAW FIRMS AND CORPORATIONS TO DO LOBBYING AND CONSULTING

EVEN DURING THE COOLINGOFF PERIOD EXMEMBERS AREN'T BARRED FROM DEVISING
LEGISLATIVE STRATEGY FOR THEIR CLIENTS MANY OF WHOM HAVE BUSINESS BEFORE
THE COMMITTEES THEY ONCE SAT ON MY ROLE HAS BEEN MORE ONE OF AN ADVISER TO
CORPORATE CLIENTS SAYS EXREP ED JENKINS OF GEORGIA WHO WORKED WITH
TEXTILE MAGNATE ROGER MILLIKEN TO OPPOSE THE NORTH AMERICAN FREE TRADE
AGREEMENT BUT WITH THE DEADLINE BEHIND HIM I CERTAINLY INTEND TO BE MORE
OF AN ADVOCATE BEFORE CONGRESS

NOTHING IN THE LAW EVER PREVENTED THE EXMEMBERS FROM LOBBYING THE EXECUTIVE
BRANCH SO MR DOWNEY WHOSE CLIENTS AT THOMAS DOWNEY & ASSOCIATES INCLUDE
JOSEPH E SEAGRAMS & SONS INC TIME WARNER INC MERCK & CO AND
METROPOLITAN LIFE INSURANCE CO HAS BEEN FREE TO CALL ON HIS CLOSE FRIEND
VICE PRESIDENT AL GORE AND SAYS HE DID SO TO INFLUENCE ADMINISTRATION
POLICY EXPANDING THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR MR
DOWNEY'S ONETIME COLLEAGUE AT THE HOUSE WAYS AND MEANS COMMITTEE BERYL
ANTHONY COULD CONTACT HIS FELLOW ARKANSAS DEMOCRATS IN THE WHITE HOUSE FOR
CLIENTS AT WINSTON & STRAWN AS HE DID LAST YEAR FOR DRUG MAKERS SEEKING
TO SOFTEN THE BLOW TO A TAX CREDIT FOR THEIR OPERATIONS IN PUERTO RICO

MOREOVER THE ONEYEAR GAG ON EXLAWMAKERS APPLIES ONLY TO CONTACTING
MEMBERS OF CONGRESS ABOUT A CLIENT'S LEGISLATIVE ISSUES
LAWMAKERSTURNEDLOBBYISTS CAN CONTINUE TO MEET SOCIALLY WITH THEIR FORMER
COLLEAGUES IN CONGRESS AND HAVE

IN THE PAST YEAR MR DOWNEY AND OTHERS KEPT UP THEIR REGULAR BASKETBALL
GAMES IN THE MEMBERSONLYAND EXMEMBERSONLYHOUSE GYM MR JENKINS
ANOTHER WAYS AND MEANS VETERAN WHO'S NOW A PARTNER WITH ACE LOBBYIST JOHN
WINBURN COULD CONTINUE TO PLAY POKER WITH HIS ONETIME COLLEAGUES FORMER
REP GUY VANDER JAGT A MICHIGAN REPUBLICAN NOW AT BAKER & HOSTETLER'S
WASHINGTON OFFICE STILL DINED ON TUESDAYS WITH OTHER HOUSE REPUBLICANS IN
THE LONGTIME SOS CLUB BREAKFASTED WEDNESDAYS WITH ANOTHER HOUSE GOP GROUP
ALONG WITH CABINET OR MEDIA TYPES AND ATTENDED BIPARTISAN PRAYER BREAKFASTS
ON THURSDAYS AT THE CAPITOL AND MANY EXLEGISLATORS REGULARLY TURNED UP IN
1993 AT LAWMAKERS' FUNDRAISERS AND IN THE COMPANY OF LAWMAKERS AT CAPITAL
RESTAURANTS OR OUTOFTOWN POLITICAL RETREATS

JUST ONE FORMER LEGISLATOR IS KNOWN TO HAVE RUN INTO TROUBLE WITH THE LAW
THIS MONTH THE FEDERAL BUREAU OF INVESTIGATION ACKNOWLEDGED THAT IT IS
INVESTIGATING WHETHER EXREP ROBIN TALLON A SOUTH CAROLINA DEMOCRAT
VIOLATED THE BAN LAST MARCH WHEN HE VISITED HIS SUCCESSOR DEMOCRATIC REP
JAMES CLYBURN WITH OTHER LOBBYISTS FOR THE TOBACCO INSTITUTE

THE MEETING ATTENDED BY A REPORTER WHO THEN WROTE ABOUT IT INCLUDED A
VIDEO AND DISCUSSION AGAINST AN ANTISMOKING MEASURE IN A COMMITTEE ON WHICH
REP CLYBURN SITS MR TALLON HAS DENIED BREAKING THE LAW A FELONY CARRYING
A PENALTY OF UP TO FIVE YEARS IN PRISON AND A 50000 FINE SAYING HE DIDN'T
LOBBY BUT ONLY SAT IN ON THE DISCUSSION

FOR MOST OF THE LEGISLATORS TURNED LOBBYISTS THE ONEYEAR BAN PROVED A
NUISANCE AT BEST IT'S CLEAR THOUGH THAT THEIR CONTACTS WITH THEIR
EXCOLLEAGUES IN CONGRESS ARE ABOUT TO INCREASE MR VANDER JAGT A FORMER
MEMBER OF THE POWERFUL WAYS AND MEANS COMMITTEE WHO SEEKS A TAX CHANGE ON
BEHALF OF AN ASSOCIATION OF FOOTBALL COACHES SAYS I TOLD THEM HOW TO MEET
WITH CONGRESSMEN BUT I COULDN'T GO WITH THEM FREED OF THE ONEYEAR GAG
HE SAYS I CERTAINLY HOPE IT WILL MAKE A DIFFERENCE

AS FOR THE CORPORATIONS AND TRADE ASSOCIATIONS THAT VIED TO HIRE THE MANY
LAWMAKERS WHO DEPARTED AFTER 1992 THE YEARLONG BAN WAS LITTLE IF ANY
DETERRENT EXLEGISLATORS SAY RECRUITERS DIDN'T EVEN ASK ABOUT THE
RESTRICTION UNLESS THE FORMER LAWMAKERS BROUGHT IT UP

WINSTON & STRAWN LURED TWO DEMOCRATS MR ANTHONY AND DENNIS ECKART OF OHIO
FORMERLY ON THE INFLUENTIAL HOUSE ENERGY AND COMMERCE COMMITTEE CASSIDY AND
ASSOCIATES SIGNED UP MARTY RUSSO OF ILLINOIS AND THE JEFFERSON GROUP HIRED
DEMOCRAT JERRY HUCKABY OF LOUISIANA AND REPUBLICAN ANDY IRELAND OF FLORIDA
WHO'S SINCE LEFT TO REPRESENT RINGLING BROS AND BARNUM & BAILEY

FORMER CONGRESSIONAL STAFFERS ALSO FALL UNDER LOBBYING RESTRICTIONS BUT OF
A MORE LIMITED SORT MICHAEL SCRIVNER FORMERLY CHIEF OF STAFF TO THE TOP
REPUBLICAN AT THE ENERGY AND COMMERCE PANEL FACED NO RESTRICTIONS AT ALL
UNDER THE LAW HE WAS BARRED ONLY FROM LOBBYING HIS EXBOSS REPUBLICAN
NORMAN LENT OF NEW YORK BUT MR LENT LIKEWISE LEFT CONGRESS TO BE MR
SCRIVNER'S LOBBYING PARTNER THEIR CLIENTS INCLUDE CORPORATIONS WITH
INTERESTS BEFORE ENERGY AND COMMERCE AMONG THEM THE BELL TELEPHONE
COMPANIES PFIZER INC AND MOBIL CORP

AMONG EXSTAFFERS A TOP DRAW IS ROBERT LEONARD FORMER CHIEF COUNSEL TO THE
WAYS AND MEANS PANEL WHO'S JOINED FORCES WITH TWO VETERAN LOBBYISTS UNTIL
NEXT MONTH THE ANNIVERSARY OF HIS DEPARTURE FROM THE COMMITTEE HE CAN'T
DISCUSS CLIENTS' ISSUES WITH CHAIRMAN DAN ROSTENKOWSKI DEMOCRAT OF
ILLINOIS OR WITH OTHER COMMITTEE MEMBERS AND STAFF THOUGH HE HAS CONTINUED
TO SEE THEM SOCIALLY BUT MR LEONARD CAN CONTACT OTHER MEMBERS OF CONGRESS
AND THEIR STAFF ON BUSINESS AND HIS LEGAL WORK ALSO TAKES HIM TO THE
INTERNAL REVENUE SERVICE AND THE TREASURY WHERE HE LIKEWISE HAS LONGTIME
CONTACTS

MR LEONARD CALLS THE ONEYEAR GAG ON LOBBYING CONGRESS AN APPROPRIATE
RESTRICTION BUT SEN DAVID BOREN D OKLA AND CONGRESS WATCH A RALPH
NADER GROUP THAT MONITORS THE REVOLVING DOOR ISSUE WANT A FIVEYEAR BAN
ON EXMEMBERS LOBBYING CONGRESS

MR DOWNEY SAYS THE BAR PERHAPS OUGHT TO BE LENGTHENED TO THE TWO YEARS OF A
FULL CONGRESS BUT MR LENT ACCORDING TO HIS PARTNER LIKES TO JOKE THAT
NOW THAT HE'S FREE OF THE RESTRICTION CONGRESS SHOULD MAKE IT 15 YEARS 
TO LIMIT THE COMPETITION 9401240125 940124 DESPITE LEGAL TROUBLES
HOFFENBERG PERSEVERES  BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE
WALL STREET JOURNAL

NEW YORK STEVEN HOFFENBERG THE UBIQUITOUS DEBT COLLECTOR WHO MADE AN
UNSUCCESSFUL BID FOR THE NEW YORK POST LAST YEAR HASN'T GONE AWAY

MR HOFFENBERG WHO HAS CONTROLLED OR BEEN AFFILIATED WITH A CHAIN OF
COMMERCIAL DEBT COLLECTION COMPANIES THAT HAS BILKED DOZENS OF SMALL
BUSINESSES OVER THE YEARS IS NOW APPARENTLY OPERATING HERE THROUGH TWO NEW
COMPANIES STRATFORD CREDIT CORP AND HALEY CAPITAL CORP

MR HOFFENBERG FACES CIVIL FRAUD CHARGES FROM THE SECURITIES AND EXCHANGE
COMMISSION AND HAS BEEN PENALIZED IN TWO STATES FOR KEEPING DEBTS HIS
COMPANIES HAD COLLECTED FOR CLIENTS YET HE HAS CONTINUED OPERATING WITH
RELATIVE EASE THIS SAY CRITICS MAKES HIM A PERFECT EXAMPLE OF THE
PROBLEMS PLAGUING THE LOOSELY REGULATED COMMERCIAL DEBT COLLECTION BUSINESS
COMMERCIAL DEBT COLLECTORS ARE HIRED BY COMPANIES TO RECOVER OUTSTANDING
DEBT FROM OTHER COMPANIES THEY TYPICALLY RECEIVE A 20 COMMISSION ON THE
DEBT THEY COLLECT

IT'S CASTING A TERRIBLE PALL OVER THE WHOLE INDUSTRY WHEN A COMPANY KEEPS
GETTING AWAY WITH THINGS LIKE THIS SAYS KATHLEEN O'CONNOR PRESIDENT OF
THE AMERICAN COMMERCIAL COLLECTORS ASSOCIATION INC A TRADE GROUP BASED IN
MINNEAPOLIS I JUST CAN'T BELIEVE THAT THE STATE ATTORNEY GENERAL'S OFFICE
IN NEW YORK HASN'T DONE ANYTHING SOMEBODY SHOULD BE AFTER THESE GUYS

MR HOFFENBERG DECLINED REPEATED REQUESTS FOR COMMENT MR HOFFENBERG'S
ATTORNEY ALAN FRAADE A PARTNER IN THE NEW YORK LAW FIRM OF MINTZ & FRAADE
SAYS MR HOFFENBERG DOESN'T WANT TO BE INTERVIEWED BECAUSE HE HAS BEEN
MISQUOTED AND MISREPRESENTED BY THE MEDIA

FOR ITS PART THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE SAYS THAT IT
CAN'T ADDRESS COMMERCIAL DEBT COLLECTION SCAMS BECAUSE THERE ARE NO STATE
LAWS REGULATING THE INDUSTRY A SITUATION COMMON IN MOST STATES

BUT SMALL BUSINESSES ARE INCREASINGLY BEING VICTIMIZED BY COMMERCIAL DEBT
COLLECTORS ACCORDING TO THE COMMERCIAL COLLECTION AGENCY SECTION OF THE
COMMERCIAL LAW LEAGUE OF AMERICA A TRADE GROUP BASED IN NEW PROVIDENCE
NJ UNLIKE CONSUMERDEBT COLLECTORS COMMERCIAL AGENCIES HAVE RECEIVED
LITTLE ATTENTION AND ARE NOT FEDERALLY REGULATED

AND IT IS THE BUSINESS PRACTICES OF THOSE SUCH AS MR HOFFENBERG THAT HAVE
LED MANY TO CALL FOR TIGHTENED REGULATIONS OF THE COMMERCIAL DEBT COLLECTION
BUSINESS

EARLY LAST YEAR MR HOFFENBERG BRIEFLY ENJOYED THE SPOTLIGHT WHEN HE MADE
AN UNSUCCESSFUL BID TO RESCUE THE AILING NEW YORK POST IN FEBRUARY THE
SEC ANNOUNCED THAT IT WAS SUING HIS COMPANY TOWERS FINANCIAL CORP A
CONGLOMERATE SPECIALIZING IN COLLECTING BAD HOSPITAL DEBT FOR DEFRAUDING
ABOUT 3000 INVESTORS BY DOCTORING THE COMPANY BOOKS

THIS WASN'T TOWERS' FIRST RUNIN WITH THE LAW IN 1987 THE APPELLATE
DIVISION OF THE SUPERIOR COURT OF NEW JERSEY IN TRENTON ORDERED TOWERS
COLLECTION SERVICE A TOWERS SUBSIDIARY TO PAY ALMOST 20000 TO LCP
CHEMICALS & PLASTICS INC A SMALL LINDEN NJ CONCERN NOW OPERATING AS
HANLIN GROUP INC LCP HAD SUED TOWERS ACCUSING IT OF IMPROPERLY WITHHOLDING
DEBTS IT HAD COLLECTED ON LCP'S BEHALF

WHILE SIMPLY POCKETING COLLECTED DEBTS IS NOT THE MOST SOPHISTICATED WAY
COMMERCIAL COLLECTORS RIP OFF SMALL BUSINESSES LAW ENFORCEMENT OFFICIALS
SAY IT IS THE MOST COMMON AND LCP WASN'T THE LAST BUSINESS STUNG BY ONE OF
MR HOFFENBERG'S COMPANIES

IN 1989 COMPLAINTS THAT TOWERS COLLECTION SERVICE OF CALIFORNIA INC A
TOWERS SUBSIDIARY BASED IN SANTA MONICA ALSO POCKETED COLLECTED DEBTS OF
DOZENS OF BUSINESSES LED TO A TWOYEAR INVESTIGATION BY THE NOWDEFUNCT
CALIFORNIA STATE BUREAU OF COLLECTION AND INVESTIGATIVE SERVICES

THE INVESTIGATION LED TOWERS TO SETTLE WITH THE STATE IN 1991 IT PROMISED
TO PROVIDE RESTITUTION TO ITS CLIENTS PAID 31000 IN STATE LEGAL COSTS AND
WAS PLACED ON A THREEYEAR PROBATION ACCORDING TO THE CALIFORNIA STATE
ATTORNEY GENERAL'S OFFICE

BY THE TIME THE SEC CAUGHT UP WITH MR HOFFENBERG LAST YEAR SEEKING ABOUT
400 MILLION IN DAMAGES TOWERS WAS NEARLY INSOLVENT IT FILED FOR CHAPTER
11 BANKRUPTCY PROTECTION IN MARCH THAT EFFECTIVELY PUT THE SEC'S ACTION ON
HOLD AS COURTAPPOINTED TRUSTEES BEGAN SORTING THROUGH TOWERS' AFFAIRS

WHILE TOWERS WAS SINKING MR HOFFENBERG HELPED A FORMER TOWERS EMPLOYEE AND
OLD FRIEND LAWRENCE LOWY START A NEW COMMERCIAL DEBT COLLECTION COMPANY BY
FRAUDULENTLY TRANSFERRING 6 MILLION AND OTHER ASSETS FROM TOWERS ACCORDING
TO A LAWSUIT FILED LATE LAST YEAR BY THE TRUSTEES IN US BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK AN ATTORNEY FOR MR HOFFENBERG DENIES
THE ALLEGATIONS

ALTHOUGH THE NEW COMPANY DIVERSIFIED CREDIT CORP OPERATES FROM THE SAME
TRUMP TOWER OFFICES FROM WHICH MR HOFFENBERG IS PUBLISHING A NEW WEEKLY
NEWSPAPER HER NEW YORK HIS ATTORNEYS SAY THAT HE IS ONLY A CONSULTANT TO
DIVERSIFIED

IN A LETTER TO THIS NEWSPAPER AN ATTORNEY REPRESENTING MR HOFFENBERG SAYS
HIS SERVICES TO DIVERSIFIED WERE LIMITED TO TRAINING SALES AND MARKETING
PERSONNEL A CLASSIFIED AD DIVERSIFIED PLACED IN THE NEW YORK TIMES LAST
MAY ALSO EXTOLLED MR HOFFENBERG'S SALESMANSHIP WORK WITH THE KING OF
ACCOUNTS RECEIVABLE COLLECTIONS  LEARN STEVEN HOFFENBERG'S WAYS OF
SELLING

BUT COMPLAINTS ABOUT THE NEW BUSINESS ARE FAMILIAR ONES THE BETTER BUSINESS
BUREAU IN NEW YORK SAYS THAT SINCE LAST SUMMER IT HAS RECEIVED 80 PHONE
CALLS AND 12 COMPLAINTS FROM SMALL BUSINESSES CHARGING THAT DIVERSIFIED HAS
POCKETED COLLECTED DEBTS

APPARENTLY DIVERSIFIED'S DAYS ARE NUMBERED MR HOFFENBERG'S ATTORNEY MR
FRAADE SAYS THAT DIVERSIFIED WHICH ALSO HAS OFFICES IN MELVILLE NY IS
IN FINANCIAL DISTRESS HE ADDS THAT DISCUSSIONS HAVE TAKEN PLACE WITH
RESPECT TO THE POSSIBLE BANKRUPTCY FILING UNDER CHAPTER 11

NONETHELESS THERE IS YET ANOTHER DEBT COLLECTION COMPANY THAT BEGAN
OPERATING A FEW MONTHS AGO AND IS AFFILIATED WITH MR HOFFENBERG AT THE
BEHEST OF MR HOFFENBERG'S UNCLE AND BUSINESS PARTNER EUGENE SHERMAN MR
FRAADE INCORPORATED STRATFORD CREDIT CORP LAST AUGUST THE COMPANY SHARES
OFFICE SPACE WITH HALEY CAPITAL CORP A BUSINESS RUN BY MR HOFFENBERG
THAT ACCORDING TO A CLASSIFIED AD IN HER NEW YORK PROVIDES FINANCING FOR
BUYING OR SELLING A BUSINESS AND PUBLIC OR PRIVATE UNDERWRITINGS

STRATFORD IS PEPPERED WITH OLD ASSOCIATES OF MR HOFFENBERG THE COMPANY'S
PRESIDENT STEVEN DREYFUS WAS A TOWERS EXECUTIVE MICHAEL ROSOFF TOWERS'
FORMER GENERAL COUNSEL WHO ALSO DID LEGAL WORK FOR DIVERSIFIED HAS AN
OFFICE AT STRATFORD AND REPRESENTS THE COMPANY ON WHAT HE DESCRIBES AS
COMMERCIAL MATTERS

MR DREYFUS SAYS THAT MR HOFFENBERG HAS NOTHING TO DO WITH STRATFORD ASKED
WHY STRATFORD SHARES OFFICES WITH HALEY CAPITAL MR DREYFUS REPLIES LET'S
JUST SAY IT'S MORE ECONOMICAL 9401240124 940124 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

ENSERCH CORP 150 MILLION OF 10YEAR NOTES VIA COMPETITIVE BID

ACF INDUSTRIES HOLDING CORP 200 MILLION OF FIVEYEAR SENIOR SECURED
ZERO COUPON NOTES AND 250 MILLION OF 10YEAR SENIOR NOTES VIA MERRILL
LYNCH & CO

AMPALAMERICAN ISRAEL CORP FOUR MILLION UNITS VIA LEHMAN BROTHERS INC

ANESTA CORP INITIAL TWO MILLION SHARES VIA MONTGOMERY SECURITIES

CELESTIAL SEASONINGS INC 425000 SHARES VIA PAINEWEBBER INC

CMG INFORMATION SERVICES INITIAL 13 MILLION SHARES VIA PIPER JAFFRAY
INC

CONGOLEUM CORP 90 MILLION OF SEVENYEAR SENIOR NOTES VIA DONALDSON
LUFKIN & JENRETTE SECURITIES CORP

CONSEP INC INITIAL 25 MILLION SHARES VIA PRUDENTIAL SECURITIES INC

CRISTALERIAS DE CHILE SA INITIAL 37 MILLION AMERICAN DEPOSITARY SHARES
VIA GOLDMAN SACHS & CO

DAIMLERBENZ AG 15 MILLION AMERICAN DEPOSITARY SHARES VIA CJ LAWRENCE
INC MERRILL LYNCH AND GOLDMAN SACHS

ESMOR CORRECTIONAL SERVICES INITIAL 833333 SHARES VIA JANNEY MONTGOMERY
SCOTT INC

FRANKLIN QUEST CO 25 MILLION SHARES VIA MERRILL LYNCH

GAMETEK INC INITIAL 21 MILLION SHARES VIA OPPENHEIMER & CO

HUGOTON ENERGY CORP INITIAL THREE MILLION SHARES VIA DONALDSON LUFKIN &
JENRETTE

IMMUNOGEN INC 25 MILLION SHARES VIA SMITH BARNEY SHEARSON INC AND
MONTGOMERY SECURITIES

IMPERIAL CREDIT 75 MILLION OF 10YEAR SENIOR NOTES VIA LEHMAN BROTHERS

INTERIM SERVICES INC INITIAL 10 MILLION SHARES VIA GOLDMAN SACHS

KLA INSTRUMENTS CORP TWO MILLION SHARES VIA KIDDER PEABODY & CO

LA T SPORTSWEAR INC INITIAL 12 MILLION SHARES VIA ROBINSONHUMPHREY
CO

LEAR SEATING 145 MILLION OF EIGHTYEAR SUBORDINATED NOTES VIA LEHMAN
BROTHERS

NEXAGEN INC INITIAL 28 MILLION SHARES VIA ALEX BROWN & SONS INC

O'SULLIVAN INDUSTRIES HOLDINGS INC INITIAL 15 MILLION SHARES VIA
MERRILL LYNCH

PLAYTEX FP GROUP INC INITIAL 20 MILLION SHARES VIA MERRILL LYNCH

PLAYTEX FAMILY PRODUCTS CORP 360 MILLION OF NINEYEAR SENIOR
SUBORDINATED NOTES VIA MERRILL LYNCH

POST PROPERTIES FOUR MILLION SHARES VIA MERRILL LYNCH

REPLIGEN CORP 25 MILLION SHARES VIA LEHMAN BROTHERS

ROCKTENN CO INITIAL 45 MILLION CLASS A COMMON SHARES VIA MORGAN
STANLEY & CO

SECURITYCONNECTICUT CORP INITIAL 85 MILLION SHARES VIA GOLDMAN SACHS

WESTERN DIGITAL CORP 61 MILLION SHARES VIA KIDDER PEABODY

YPF SOCIEDAD ANONIMA 350 MILLION OF SENIOR NOTES VIA CS FIRST BOSTON
INC

ILLINOIS 100 MILLION OF SALESTAX REVENUE BONDS VIA COMPETITIVE BID

SAN ANTONIO TEXAS 750 MILLION OF ELECTRIC AND GAS SYSTEM REVENUE
REFUNDING BONDS VIA A GOLDMAN SACHS GROUP

WASHINGTON PUBLIC POWER SUPPLY SYSTEM 660 MILLION OF REFUNDING BONDS
VIA A CS FIRST BOSTON GROUP 9401240123 940124 CABLE & WIRELESS JOINS 
CONSORTIUM TO PLAN CARIBBEAN FIBER OPTICS  SPECIAL TO THE WALL
STREET JOURNAL

LONDON BRITAIN'S CABLE & WIRELESS PLC SAID IT IS PART OF A CONSORTIUM TO
PLAN A HIGHCAPACITY FIBEROPTIC SUBMARINE CABLE TO LINK 14 ISLANDS IN THE
CARIBBEAN

THE COST OF THE INSTALLED SYSTEM IS EXPECTED TO BE 60 MILLION WITH CABLE &
WIRELESS TO INVEST 66 FRANCE TELECOM 18 AND AMERICAN TELEPHONE &
TELEGRAPH CO 6 THERE ARE SEVERAL OTHER MINORITY SHAREHOLDERS

CABLE & WIRELESS SAID THE EASTERN CARIBBEAN FIBER SYSTEM WILL COVER 1073
MILES AND WILL EXTEND FROM THE BRITISH VIRGIN ISLANDS IN THE NORTH TO
TRINIDAD IN THE SOUTH THE SYSTEM IS INTENDED TO IMPROVE SECURITY FROM
HURRICANES AND MEET FUTURE TELECOMMUNICATIONS DEMANDS

CONSTRUCTION OF THE CABLE IS EXPECTED TO START IN MARCH IT IS EXPECTED TO
BE READY TO BEGIN SERVICE BY EARLY 1995 9401240122 940124 WHO'S NEWS 
IVF AMERICA NAMES CANET TO BE PRESIDENT AND CHIEF EXECUTIVE

GREENWICH CONN IVF AMERICA INC NAMED GERARDO CANET 48 YEARS OLD
PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE IN MIDFEBRUARY

HE SUCCEEDS PHILIPPE L SOMMER WHO HAD HELD BOTH POSTS ON AN INTERIM BASIS
IVF BEGAN UNDERGOING MANAGEMENT CHANGES IN SEPTEMBER WHEN ANDREW DAHL
FORMERLY PRESIDENT AND CHIEF EXECUTIVE LEFT THE COMPANY TO PURSUE OTHER
INTERESTS A SPOKESMAN SAID AT THAT TIME MR SOMMER MANAGING DIRECTOR OF
MEDICAL VENTURES HOLDINGS INC IN NEW YORK AGREED TO WORK PARTTIME AT IVF
UNTIL A SUCCESSOR FOR MR DAHL WAS NAMED MEDICAL VENTURES IS A PRINCIPAL
HOLDER OF IVF

MR CANET WAS EXECUTIVE VICE PRESIDENT OF CURATIVE TECHNOLOGIES INC EAST
SETAUKET NY AND PRESIDENT OF ITS WOUNDCARE CENTER DIVISION

IVF WHICH PROVIDES FERTILITY TREATMENT ALSO SAID EDWIN SNAPE A MANAGING
GENERAL PARTNER OF THE VISTA GROUP IN NEW CANAAN CONN RESIGNED AS
CHAIRMAN AS HE HAD INTENDED WHEN A NEW CHIEF EXECUTIVE WAS NAMED

CURATIVE TECHNOLOGIES SAID ITS PRESIDENT AND CHIEF EXECUTIVE RUSSELL B
WHITMAN WILL ASSUME MR CANET'S DUTIES THE COMPANY ADDED THAT IT HAD NO
IMMEDIATE PLANS TO NAME A SUCCESSOR 9401240121 940124 ADOLPH COORS UNIT 
UNVEILS PLAN TO SELL AN ICEBEER PRODUCT

GOLDEN COLO COORS BREWING CO RUSHING INTO THE NEW MARKET FOR
SOCALLED ICE BEER UNVEILED PLANS TO SELL ITS OWN VERSION TO BE CALLED
COORS ARTIC ICE

COORS A UNIT OF ADOLPH COORS CO GOLDEN COLO IS LICENSING AN
ICEBREWING PROCESS PATENTED BY CANADA'S LABATT BREWERIES A UNIT OF JOHN
LABATT LTD

THE IDEA BEHIND ICE BEER IS TO BREW IT AT SUCH A LOW TEMPERATURE THAT ICE
CRYSTALS FORM THE CRYSTALS ARE FILTERED OUT OSTENSIBLY CHANGING THE BEER'S
TASTE SOMEHOW

IT SUPPOSEDLY HELPS CREATE A BOLDER CLEANER TASTE AND FINISH A COORS
SPOKESWOMAN SAID

COORS THE THIRDLARGEST US BREWER IS PLAYING CATCHUP WITH US BEER
GIANTS ANHEUSERBUSCH COS AND MILLER BREWING CO A UNIT OF PHILIP MORRIS
COS WHICH INTRODUCED THEIR ICE BEERS IN SOME MARKETS LAST FALL ANHEUSER
CALLS ITS VERSION ICE DRAFT MILLER'S IS ICEHOUSE

THOUGH ICE BEER IS TOO NEW TO HAVE CAPTURED A SIGNIFICANT PART OF THE US
MARKET COORS WANTED TO BE PREPARED IN CASE ICE BEER TOOK OFF IN POPULARITY
IN THE WAY THAT LIGHT BEER DID BUT DRY BEER DIDN'T SAID EMANUEL GOLDMAN
ANALYST AT PAINEWEBBER INC COORS DIDN'T FEEL THAT IT COULD SIT BACK AND
NOT HAVE AN ENTRY IN THE ICE BEER MARKET HE SAID

IN CANADA ICE BEER HAS SEIZED 10 OF THE DOMESTIC BEER MARKET SINCE BEING
INTRODUCED EARLY LAST YEAR BY LABATT AND RIVAL MOLSON BREWERIES A UNIT OF
MOLSON COS OF TORONTO

LABATT WHICH SPENT 10 YEARS DEVELOPING ITS ICEBREWING PROCESS WILL EARN
ABOUT 4 MILLION A YEAR FROM THE COORS LICENSING PACT ANALYSTS ESTIMATE
THE CANADIAN BREWER WHICH SELLS ITS LABATT ICE BEER BRAND IN CANADA THE
US AND BRITAIN SAYS IT EXPECTS TO SIGN SIMILAR LICENSING PACTS WITH
BREWERS IN OTHER COUNTRIES

LABATT HAS AGGRESSIVELY TRIED TO BLOCK COMPETITORS FROM USING THE PHRASES
ICE BEER AND ICE BREWED LABATT HAS SUED MOLSON AND MILLER CLAIMING
THEY VIOLATED LABATT'S INTELLECTUAL PROPERTY RIGHTS MILLER AND MOLSON HAVE
CALLED THE SUITS GROUNDLESS

COORS WHICH PLANS TO INTRODUCE ARTIC ICE IN NINE MARKETS ON FEB 14 SAID
IT WILL BE ONE OF COORS'S HIGHERPRICED BEERS ALONG WITH THE COMPANY'S
SPECIALTY BRANDS 9401240120 940124 NATION'S STEEL IMPORTS IN NOVEMBER
CLIMBED 09 FROM OCTOBER'S

WASHINGTON US STEEL IMPORTS ROSE JUST 09 IN NOVEMBER FROM OCTOBER
BUT ROSE ABOUT 34 FROM NOVEMBER 1992

IMPORTS IN THE LATEST MONTH TOTALED 2161596 TONS COMPARED WITH 2142809
TONS IN OCTOBER AND 1614000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN
IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS

IN NOVEMBER IMPORTS REPRESENTED 236 OF CONSUMPTION UP SLIGHTLY FROM
229 IN OCTOBER AND UP FROM 208 IN NOVEMBER 1992

STEEL IMPORTS FOR THE FIRST ELEVEN MONTHS OF 1993 TOTALED 17658970 TONS
UP 124 FROM 15710241 TONS IN THE YEAREARLIER PERIOD IMPORT PENETRATION
WAS 186 OF THE MARKET FOR THIS PERIOD OF 1993

STEEL EXPORTS IN NOVEMBER TOTALED 290795 TONS UP 04 FROM 289526 TONS IN
OCTOBER AND DOWN 182 FROM THE 355282 TONS IN NOVEMBER 1992 EXPORTS FOR
THE FIRST ELEVEN MONTHS OF LAST YEAR TOTALED 3680594 TONS DOWN 66 FROM
3939212 TONS EXPORTED IN THE SAME PERIOD IN 1992 9401240119 940124
MARKETING & MEDIA DUN & BRADSTREET UNIT INCREASES SIZE OF POOL IN
NIELSEN TV RATINGS

NEW YORK NIELSEN MEDIA RESEARCH SAID IT WILL INCREASE BY 25 TO 5000
THE NUMBER OF HOUSEHOLDS IN THE SAMPLE IT USES TO CALCULATE NATIONAL
TELEVISION RATINGS

THE SAMPLE CURRENTLY 4000 HOUSEHOLDS PROVIDES NATIONWIDE AUDIENCE
ESTIMATES FOR THE FOUR BROADCAST NETWORKS 32 CABLE NETWORKS AND HUNDREDS OF
SYNDICATED SHOWS

STATISTICALLY A LARGER SAMPLE WILL LIKELY BE OF MOST BENEFIT TO SMALL CABLE
CHANNELS AND SYNDICATED SHOWS WITH MORE HOUSEHOLDS PARTICIPATING IN THE
RATINGS SURVEY LESSERVIEWED PROGRAMS ARE MORE APT TO SHOW UP IN THE
RANKINGS AND SUCH PROGRAMMING WON'T BE AS VULNERABLE TO THE TV PREFERENCES
OF JUST ONE OR TWO HOUSEHOLDS

THE BIGGER SAMPLE WILL ALSO MAKE IT EASIER TO BREAK DOWN AUDIENCE ESTIMATES
INTO SUCH DEMOGRAPHIC FACTORS AS AGE GENDER AND INCOME NIELSEN SAID

THE COMPANY IN ITS SURVEY USES PEOPLE METERS SMALL DEVICES THAT LET
HOUSEHOLD MEMBERS INDICATE WHEN THEY ARE IN A ROOM WHERE A TV IS ON
PROVIDING NIELSEN WITH DEMOGRAPHIC INFORMATION

THE EXPANSION WILL BEGIN IN SEPTEMBER AND TAKE TWO YEARS TO COMPLETE
NIELSEN IS A UNIT OF DUN & BRADSTREET CORP 9401240118 940124 CORRECTIONS
& AMPLIFICATIONS

AMERICAN PETROLEUM INSTITUTE INVENTORY STATISTICS RELEASED WEDNESDAY SHOWED
THAT CRUDE OIL STOCKS DECREASED BY 505000 BARRELS TO 333540000 BARRELS
LAST WEEK DISTILLATE OR HEATING OIL AND DIESEL FUEL INVENTORIES DECREASED
BY 4773000 BARRELS TO 137079000 BARRELS GASOLINE INVENTORIES ROSE IN
THURSDAY'S COMMODITIES COLUMN THE FIGURES WERE MISSTATED

MONEY MAGAZINE WHICH IS PART OF TIME WARNER INC'S PUBLISHING UNIT
RECORDED A 33 DROP IN ITS ADVERTISING PAGES IN 1993 AN ARTICLE THURSDAY
INCORRECTLY STATED THAT MONEY'S AD PAGES DECLINED 75 LAST YEAR BASED ON
FIGURES FROM PUBLISHERS INFORMATION BUREAU THAT DIDN'T INCLUDE MONEY'S
EXTRA YEAREND EDITION 9401240117 940124 BUSINESS BRIEF SOUTHERN CO
 FIRSTPERIOD CHARGE TO COVER UNIT'S EARLY RETIREMENT PLAN

SOUTHERN CO ATLANTA WILL TAKE A ONETIME AFTERTAX CHARGE OF 38 MILLION
IN THE FIRST QUARTER REDUCING PERSHARE EARNINGS 12 CENTS TO COVER AN
EARLYRETIREMENT PROGRAM AT ITS GEORGIA POWER CO UNIT

GEORGIA POWER SAID IT WILL OFFER THE PROGRAM TO 445 WORKERS AND IS AIMING
FOR A PARTICIPATION RATE OF AT LEAST 80 THE COMPANY SAID IT EXPECTS TO
RECOUP THE COSTS IN ABOUT TWO YEARS THROUGH REDUCED SALARIES AND BENEFITS
GEORGIA POWER HAS TRIMMED ITS WORK FORCE BY 15 SINCE 1988 TO CUT COSTS IN
THE FACE OF RISING COMPETITION

FOR THE FIRST QUARTER OF 1993 THE UTILITY HOLDING COMPANY REPORTED
EARNINGS OF 177 MILLION OR 56 CENTS A SHARE ON REVENUE OF 184 BILLION
9401240116 940124 INTERNATIONAL DEGUSSA BOARD CLEARS DIVIDEND

FRANKFURT DEGUSSA AG'S SUPERVISORY BOARD APPROVED THE PROPOSAL TO PAY A
DIVIDEND OF SEVEN MARKS A SHARE 403 FOR THE YEAR THAT ENDED SEPT 30

THE GERMAN SPECIALTY CHEMICALS AND METALS COMPANY PAID SEVEN MARKS THE
PREVIOUS TWO FISCAL YEARS

DEGUSSA'S SUPERVISORY BOARD ALSO VOTED TO CUT THE SIZE OF DEGUSSA'S BOARD BY
TWO MEMBERS THE REDUCTION IS CONNECTED WITH THE WINDING UP OF ITS TWOYEAR
RESTRUCTURING PROGRAM THE GOAL OF PARING DOWN THE COMPANY'S SECTORS AND
DECENTRALIZING MANAGEMENT WHICH WILL BE SIGNIFICANTLY FINISHED IN 1994 HAS
RESULTED IN A FURTHER TIGHTENING IN THE HIGHEST MANAGEMENT LEVEL THE
COMPANY SAID 9401240115 940124 HEARD ON THE STREET COLUMBIA GAS'S
REORGANIZATION PLAN PROVIDES PIPE DREAM FOR SOME LONG WAIT FOR SKEPTICS 
 BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL

INVESTORS' HOPES FOR A SPEEDY RESOLUTION OF COLUMBIA GAS SYSTEM'S BANKRUPTCY
PROCEEDING MAY PROVE TO BE PIPE DREAMS SKEPTICS SAY

THE NATURAL GAS UTILITY AND PIPELINE COMPANY ANNOUNCED LAST WEEK THAT IT HAD
FILED A CHAPTER 11 REORGANIZATION PLAN FOR ITS TRANSMISSION SUBSIDIARY
MIRED ALONG WITH THE PARENT IN BANKRUPTCY COURT SINCE JULY 1991 INVESTORS
RUSHED TO BUY THE PARENT'S STOCK WHICH SOARED MORE THAN THREE POINTS IN
MIDWEEK BEFORE SETTLING BACK FRIDAY TO 25 1/4 OFF 3/4

BUT BANKRUPTCY SPECIALISTS WARN THAT THE PLAN FILED IN FEDERAL
BANKRUPTCYCOURT IN WILMINGTON DEL DOESN'T NECESSARILY HERALD AN EARLY
END TO THIS LITIGATIONSNARLED PROCEEDING THERE IS A LOW PROBABILITY OF
THIS COMPANY EMERGING FROM BANKRUPTCY COURT BEFORE MID1995 SAYS TK
DUGGAN A FOUNDER OF DELAWARE BAY CO WHICH SPECIALIZES IN DISTRESSED DEBT

COLUMBIA GAS IS AN ANOMALY AMONG BANKRUPTCIES A COMPANY WITH THE
WHEREWITHAL TO PAY ITS DEBTS THAT DUCKED INTO BANKRUPTCY COURT TO DITCH SOME
OF THEM IT HAS BEEN TRYING TO SHED HIGHPRICED SUPPLY CONTRACTS BETWEEN ITS
TRANSMISSION ARM AND NATURALGAS PRODUCERS THAT WERE SIGNED BEFORE THE
NATURALGAS BUBBLE BURST

THE VALUE OF COLUMBIA GAS'S STOCK DEPENDS BOTH ON THE SUBSIDIARY'S EVENTUAL
SETTLEMENT WITH PRODUCERS AND ON THE TIMING OF THAT PEACE SINCE THE
BANKRUPTCY FILING COLUMBIA GAS'S WAR HAS INTENSIFIED WITH THE PRODUCERS
WHICH INCLUDE EXXON AND UNION PACIFIC THE PRODUCERS CLAIM THEY WERE DONE
OUT OF 10 BILLIONPLUS BY COLUMBIA'S ABROGATION OF CONTRACTS THEY ALSO
WANT THE SECURED LOAN COLUMBIA MADE TO THE TRANSMISSION SUBSIDIARY NOW
VALUED AT 175 BILLION TO BE TREATED AS AN EQUITY INFUSION WHICH WOULD
RANK LOWER ON THE CREDIT LADDER THAN THEIR UNSECURED CLAIM AND THEY'RE
TRYING TO REVERSE ABOUT 400 MILLION OF PAYMENTS THE TRANSMISSION SUBSIDIARY
MADE TO COLUMBIA IN YEARS BEFORE THE FILING

EVEN SORTING OUT HOW MUCH THE PRODUCERS CAN CLAIM HAS PROVED THORNY IN
OCTOBER 1992 THE BANKRUPTCY COURT APPOINTED A MEDIATOR TO DECIDE WHAT
METHODOLOGY TO USE TO CALCULATE PRODUCERS' CLAIMS THOSE HEARINGS ENDED IN
NOVEMBER 1993 AND PROBABLY SPURRED THE TRANSMISSION COMPANY'S FILING SAYS
LES E LEVY IN MERRILL LYNCH'S HIGHYIELD RESEARCH DEPARTMENT HE BELIEVES
THAT THE COMPANY'S 900 MILLION SETTLEMENT OFFER WAS SHAPED BY THE EVIDENCE
AT THE HEARINGS

THE PRODUCERS SAY THAT'S TOO LITTLE STILL SOME ANALYSTS VIEW THE COMPANY'S
TALK OF A POTENTIALLY LOW SETTLEMENT WHICH THE TRANSMISSION COMPANY COULD
JUST ABOUT AFFORD ON ITS OWN AS AN ENCOURAGING SIGN THAT THE MEDIATOR
WILL AGREE WITH THE COMPANY'S METHODOLOGY FOR CALCULATING CLAIMS DAVID
FLEISCHER OF GOLDMAN SACHS INVESTMENT RESEARCH ALREADY ENTHUSIASTIC RUSHED
OUT A BUY RECOMMENDATION BECAUSE HE BELIEVES THE STOCK WILL BE WORTH 30 IN
THREE TO SIX MONTHS

TO PROPEL COLUMBIA GAS TOWARD A RESOLUTION PRODUCERS ARE BEATING THE BUSHES
FOR SUITORS THE COMPANY LOOKS GOOD IT HAS REDUCED ITS EXPOSURE TO
GASPRICE ZIGZAGS AND CAN CHARGE HIGHER RATES ON ITS PIPELINE CASH FLOW
WAS A STRONG 640 MILLION IN 1993 SAYS MR LEVY OF MERRILL LYNCH AND IS
LIKELY TO KEEP GROWING AT 15

BUT A SMALL CHANGE IN THAT SETTLEMENT AND IN TIMING WOULD MAKE A BIG
DIFFERENCE IF THE PRODUCERS WERE TO GET AS MUCH AS 13 BILLION COLUMBIA
GAS STOCK PROBABLY WOULDN'T EXCEED 28 SAYS MR LEVY THAT'S LESS THAN 11
FROM HERE NOT A SIZZLING RETURN IF INVESTORS HAVE TO WAIT A YEAR OR MORE
FOR THE SETTLEMENT

DREMAN VALUE MANAGEMENT BECAME COLUMBIA'S THIRD LARGEST HOLDER BY
ACCUMULATING HALF ITS STAKE SHORTLY AFTER THE BANKRUPTCY FILING AND THE
OTHER HALF IN THE QUARTER THROUGH SEPTEMBER 1993 WHEN THE STOCK DIPPED
AGAIN THIS IS JUST LIKE TEXACO EXULTS DAVID DREMAN HE IS ENTHUSIASTIC
ABOUT THE COMPANY'S STRONG POSITION AS NATURALGAS PRICES RISE ARGUING THAT
THE STOCK WILL BE WORTH 35 IF YOU CAN HOLD OUT YET HE ISN'T BUYING MORE
SAYING IT'S A STRONG HOLD FOR US RIGHT NOW

NOTELL TELMEX THE MEXICAN GOVERNMENT QUIETLY SOLD ABOUT 1 BILLION IN
TELEFONOS DE MEXICO SHARES ON THE NEW YORK STOCK EXCHANGE DURING NOVEMBER
THE SHARES WERE SOLD THROUGH NACIONAL FINANCIERA MEXICO'S MARKETSAVVY
DEVELOPMENT BANK THE SALES OCCURRED AMID THE BIG POSTNAFTA RALLY IN
MEXICAN STOCKS THE GOVERNMENT IS PACKAGING THE LAST OF ITS SHARES INTO A
CONVERTIBLE BOND THEN THE SUPPLY OVERHANG ON THE STOCK WILL BE GONE
TRADERS FIGURE THAT'S ONE REASON TELMEX SHARES ARE UP 3 SINCE DEC 31
TELMEX THIS MONTH ALSO ANNOUNCED A 304 MILLION STOCK BUYBACK

CRAIG TORRES CONTRIBUTED TO THIS ARTICLE

NINE MONTHS ENDED SEPT 30 1993

THIRD QUARTER SEPT 30 1993 9401240114 940124 LEISURE & ARTS 
TELEVISION TALENT SAVES A SITCOM THE INMAN INCIDENT  BY DOROTHY
RABINOWITZ

NOTHING ABOUT NBC'S MAD ABOUT YOU THURSDAYS 8830 PM EST SEEMED MORE
UNLIKELY WHEN IT BEGAN AIRING LAST SEASON THAN THE POSSIBILITY THAT THIS
FRENZIED LITTLE SITCOM WHICH BEGAN WITH A COUPLING ON A KITCHEN TABLE
COULD EVOLVE INTO SERIOUS ENTERTAINMENT EVEN SO THAT IS WHAT DID HAPPEN TO
THIS RICH COMEDY ABOUT A MANHATTAN COUPLE

THERE IS NO EXPLAINING WHY OUTSIDE OF THE USUAL GOOD REASONS WIT WORK
AND THE TRIUMPH OF TALENT OVER FORM THERE IS INDEED HARDLY AN EPISODE THAT
DOESN'T UNDERSCORE HOW MUCH TALENT CAN DO FOR A STANDARD SITCOM LINE 
WHICH ISN'T TO SAY THAT THE SCRIPTS HERE ARE STANDARD THEY ARE BETTER THAN
THAT STILL THERE'S NO DENYING HOW MUCH BETTER BETTER CAN GET WHEN THOSE
TWO MASTERS OF TIMING PAUL REISER AND HELEN HUNT GET TO WORK ON THEIR
LINES

TO APPRECIATE WHAT THE SHOW HAS BECOME ONLY REQUIRES LOOKING AT THE LIFE
THAT MR REISER/MS HUNT AS THE TWO LEADS PAUL AND JAMIE BUCHMAN AND
CYNTHIA HARRIS PAUL'S HEROICALLY TERRIFYING MOTHER MANAGE TO SQUEEZE OUT
OF A TIMEWORN COMIC SITUATION JAMIE HAS FALSELY CLAIMED THAT PAUL IS AWAY
WORKING ON HIS MOVIE JOB SO THAT THE COUPLE CAN AVOID HAVING DINNER WITH
MOTHER BUCHMAN BUT MOTHER BUCHMAN A ROLE MS HARRIS PLAYS WITH GRIMLY
SUSTAINED PANACHE WHO IS DRIVEN BY A SUSPICION OF THE UNIVERSE IN GENERAL
AND OF HER SON AND DAUGHTERINLAW IN PARTICULAR POPS IN UNANNOUNCED AS
HER KNOWING SON PREDICTED SHE WOULD

THE RESULTING FRANTIC EFFORT TO HIDE PAUL'S PRESENCE IN A SMALL CITY
APARTMENT HE ENDS UP TRAPPED ON THE FIRE ESCAPE MAY BE THE STUFF OF
STOCK FARCE YET IN THE HANDS OF THIS TEAM IT IS FARCE THAT CAN CONVULSE
THE TRICK IS THAT FOR ALL THE SITUATIONAL MADNESS THE TALENT HERE KEEPS
ITS GRIP ON THE GOAL OF PORTRAYING REALLIFE PEOPLE THE WORK GOING ON HERE
IN SHORT IS A LOT MORE COMPLICATED THAN THE DELIVERY OF FUN ONELINERS

MAD ABOUT YOU MAY BE SOMEWHAT SIMILAR IN CONTENT TO THAT CROWD OF
NEUROTICFAMILY SITCOMS AIRED THE PAST TWO SEASONS BUT IT'S A WORLD APART
IN SENSIBILITY IT'S NOT HARD TO IMAGINE HOW THE LOUDMOUTHED STARS OF THE
MOMMIES FOR INSTANCE OR THE JUST PLAIN NOISY STAR OF THE NANNY WOULD
DELIVER THOSE LINES THAT MR REISER AND MS HUNT MANAGE WITH SUCH FINETUNED
VENOM WHEN THEIR SUNNY SIDES AREN'T UP

MS HUNT MR REISER AND COMPANY KNOW THE OBSESSIONS OF THE SOCIAL TYPES
THEY DEPICT ONE SCENE IN ONE OF THE SERIES' BETTER EPISODES TAKES PLACE IN
A HOSPITAL ROOM PAUL'S FATHER LOUIS ZORICH WHO HAS JUST SUFFERED A HEART
ATTACK HAS ONLY ONE PREOCCUPATION AND ONE QUESTION FOR HIS VISITING
CHILDREN WHERE DID YOU PARK BENT ON IGNORING HER DAUGHTERINLAW MOTHER
BUCHMAN HOVERS AROUND THE HOSPITAL BED AND CONCENTRATES ON ASKING HER SON
QUESTIONS ON THE ORDER OF HOW IS MURRAY THE DOG THE DOG IS GOOD
COMES THE EXASPERATED REPLY HE WOULD HAVE BEEN HERE BUT HE'S RUNNING
ERRANDS TODAY MR REISER CAN DELIVER ONELINERS LIKE THESE SO THAT HE
ACTUALLY SOUNDS LIKE AN IRRITATED SMARTMOUTHED SON RATHER THAN A
STANDUP COMEDIAN WHO GOT A TV SERIES

IN THE LINE OF FILIAL DUTY AND TO COMFORT MOTHER BUCHMAN WHILE HER HUSBAND
IS IN THE HOSPITAL PAUL AND JAMIE GO OFF TO SHARE A MEAL WITH HER IT IS A
VISIT THAT OCCASIONS IMMENSELY COMPLICATED IF NOT ALTOGETHER INSANE
EXCHANGES ON THE SUBJECTS OF TURKEY TURKEY SANDWICHES AND EATING IN
GENERAL FOOD ORDERED IN MOTHER BUCHMAN SNIFFS ISN'T THE SAME AS
COOKING IT'S ONLY ORDERING IN

THAT'S RIGHT HER SON REPLIES WITH MURDEROUS CALM AND COOKING ISN'T THE
SAME AS ORDERING IN SO COOKING I'M GUESSING WOULD BE COOKING

THE SHOW ISN'T WITHOUT ITS ROUGH SPOTS AMONG THEM THE SCREECHILY OVERDRAWN
CHARACTER OF JAMIE'S SISTER WHOSE APPEARANCES ARE ALL TOO FREQUENT AND
WITLESS THEN THERE IS THE INDUSTRIAL QUANTITY OF SEXUAL FUN AND DARING THAT
CAN GET MIGHTILY SELFCONSCIOUS SUCH FLAWS ASIDE MAD ABOUT YOU IS AN
ARTFUL HOWL DESERVING OF PRAISE AND A WIDE AUDIENCE BOTH OF WHICH IT IS
LIKELY TO WIN IF THERE'S ANY JUSTICE IN THE WORLD

LET US PAUSE WHILE TURNING TO LESS ENTERTAINING MATTERS TO NOTE THE LATEST
CONVULSION OF SELFANALYSIS TO HIT THE MEDIA AS A RESULT OF ADM INMAN'S
PRONOUNCEMENTS ON THE PRESS

AS ALL THE WORLD HAS BY NOW HEARD THE PRESIDENT'S NOMINEE FOR THE POST OF
SECRETARY OF DEFENSE LAST WEEK DECIDED FOR REASONS BEST KNOWN TO HIMSELF
TO DROP OUT BEFORE HIS CONFIRMATION HEARINGS THE REASON ADM INMAN GAVE 
THAT HE HAD BEEN MADE THE TARGET OF A PLOT BY THE SENATE MINORITY LEADER AND
A COLUMNIST WAS SO LUDICROUS ON ITS FACE THAT SOME NETWORK REPORTERS
DELIVERING WORD OF THE ACCUSATIONS COULD NOT CONCEAL THEIR AMAZEMENT IT WAS
HARD THE DAY THE NEWS BROKE TO KEEP TRACK OF THE NUMEROUS TIMES THE
ADMIRAL'S REASON WAS COMPARED WITH THE ONE ROSS PEROT OFFERED FOR DROPPING
OUT OF THE PRESIDENTIAL RACE AN ALLEGED PLOT TO MESS UP HIS DAUGHTER'S
WEDDING

STILL ALL THE WELLJUSTIFIED JOURNALISTIC INCREDULITY ADM INMAN'S CHARGES
INSPIRED COULD NOT SUCCEED IN PREVENTING AN ONSLAUGHT OF HIGH MEDITATION ON
THE MERITS OF THE ADMIRAL'S CHARGES ABOUT THE PRESS A GUEST ON THE
MACNEIL/LEHRER NEWSHOUR LAST WEEK WAS FOR INSTANCE MOVED TO POINT OUT
THAT AS A RESULT OF ADM INMAN'S CHARGES THERE WOULD BE GROWING DEBATE ON
THE MEDIA'S EXCESSES AND AUTHOR LARRY SABATO JOINED IN TO SAY THAT YES THE
ADMIRAL'S CHARGES WEREN'T PERSUASIVE BUT THAT HE MADE A POINT

THERE REALLY IS SOMETHING QUITE REMARKABLE ABOUT THE WAY EVEN THE MOST
ABSURD CHARGES OF MEDIA CULPABILITY CAN PRODUCE INSTANT AND REVERENT
ATTENTION FROM THE MEDIA ALONG WITH BOUTS OF SOLEMN SELFREFLECTION THERE
IS PLENTY OF REASON GENERALLY FOR THE PRESS TO REFLECT ON ITS BEHAVIOR
AND ONE OF THE THINGS IT MIGHT REFLECT ON AFTER DEALING WITH OTHERS MORE
IMPORTANT IS WHY EVERY CHARGE OF MEDIA PERFIDY UTTERED BY EVERY POLITICAL
CRANK WHO WANTS TO CHANGE THE SUBJECT SHOULD INVARIABLY BE CREDITED AS BEING
IMPORTANT AND WORTHY OF URGENT DEBATE IT IS A QUESTION 9401240113 940124
REVIEW & OUTLOOK EDITORIAL THE EARTHQUAKE'S OPPORTUNITIES

THE EARLY CONSENSUS EMERGING FROM THE EARTHQUAKE'S AFTERMATH WOULD HAVE US
BELIEVE THAT CALIFORNIA IS NOW GOING TO A REPAIR ITS ELABORATE
INFRASTRUCTURE B KEEP ITS SUPERCHARGED SOCIAL SERVICES IN PLACE AND C
CONTINUE TO INDULGE ITS ENVIRONMENTAL AMBITIONS IT WILL DO ALL THIS THE
STATE'S CONVENTIONAL THINKERS WERE SAYING LATE LAST WEEK BY INCREASING
TAXES PRESUMABLY ON THE STATE'S DECLINING INCOMES SIEGFRIED AND ROY HAD
BETTER COME OVER FROM VEGAS TO HELP OUT

CALIFORNIA IS ALREADY AMONG THE TOP THIRD IN STATE TAX BURDENS WHETHER IT'S
THE GASOLINE TAX OR A MORE GENERAL SALES TAX CAN THAT REALLY BE TOM HAYDEN
PROPOSING SUCH A REGRESSIVE MEASURE OR THE PETE WILSON PREFERENCE OF A
BIG BOND ISSUE A DELAYED TAX INCREASE MOST OF THE VOCAL POLITICIANS SEEM
TO WANT TO HIKE SOMETHING TO PUT CALIFORNIA BACK TOGETHER AGAIN

WAIT A MINUTE CALIFORNIA SHOWS THE WAY IN SO MANY THINGS AT THIS LOW STAGE
IN ITS TROUBLES WE THINK IT'S TIME FOR CALIFORNIA TO GO BACK TO THE DRAWING
BOARD THESE EARLIEST REPORTS SUGGEST THAT CALIFORNIA'S WORNOUT
ESTABLISHMENT THINKERS ARE QUITE PREPARED TO PUSH DOWN THE SAME OLD ROAD 
THE ONE THAT ONLY THE OCCASIONAL TREMOR OF A TAX REVOLT SEEMS CAPABLE OF
BUCKLING

WE KNOW THOUGH THAT CALIFORNIA'S FAMOUS FOR HAVING SMART PEOPLE WHO THINK
IN UNCONVENTIONAL WAYS UNTIL THE RECENT NATURAL AND FISCAL CATASTROPHES IT
WAS THE LAND THAT BRED ENTREPRENEURS AS THE STATE EMERGES FROM THE RUBBLE
WHY NOT OPEN THE PUBLIC DEBATE TO INCLUDE SOME RADICAL NOTIONS ABOUT THE
STATE'S FUTURE THESE IDEAS WOULD BE BUILT AROUND THE NOTION THAT AN
EMERGENCY IS A GOOD TIME FOR RECONSIDERING ASSUMPTIONS AND PERHAPS ACTUALLY
LOWERING YOUR ONGOING EXPENSES

WE SUGGESTED HERE THE OTHER DAY FOR EXAMPLE THAT THE UNIONS' PREVAILING
WAGE AND APPRENTICESHIP GRIP ON PUBLIC WORKS BE LOOSENED TO LOWER
RECONSTRUCTION COSTS BY PERHAPS 20 BUT DON'T STOP THERE

SCHOOLS LOS ANGELES SCHOOLS FACE AN OVERWHELMING BILL TO SHORE UP DAMAGED
BUILDINGS BUT COMMERCIAL SPACE IS GOING BEGGING FOR LESSEES ALL AROUND
SOUTHERN CALIFORNIA HOW ABOUT IMMEDIATELY INCREASING THE ALLOWANCE FOR
INNOVATIVE CHARTERTYPE SCHOOLS THAT COULD BE SET UP IN SOME OF THESE
LOCATIONS TO GET THE LEARNING RESTARTED

IF THIS IS MORE THAN THE GIANT BUREAUCRATIC LOS ANGELES UNIFIED SCHOOL
DISTRICT CAN HANDLE ALL THE MORE REASON TO BREAK THE DISTRICT UP RIGHT NOW
INTO SMALLER PARENT AND PRINCIPALDIRECTED UNITS SOME SYMPATHY FROM THE
COURTS WOULD BE REQUIRED TO SUSPEND SOME TERMS OF EMPLOYEE UNION CONTRACTS

WELFARE CALIFORNIA HAS BEEN PARING BACK ITS WELFARE BENEFITS IN RECENT
YEARS AND GOVERNOR WILSON HAD PROPOSED ANOTHER SLICE BEFORE THE QUAKE BUT
ITS MEDICAID BILL KEEPS SHOOTING UP CONGRESSMAN HENRY WAXMAN SHOULD BE
ASKED TO CONSIDER SOME LOCAL WAIVERS FROM THE ADDED MANDATES HE'S SHEPHERDED
THROUGH AT THE FEDERAL LEVEL BUT THAT WAS THEN THIS IS NOW

ENVIRONMENT SAME SOLUTION CALIFORNIA WAS ALREADY BREAKING BENEATH THE
CLEAN AIR AND CLEAN WATER REQUIREMENTS ISSUING FROM WASHINGTON AND
SACRAMENTO AGAIN REP WAXMAN'S OFFICE IS THE PLACE TO CALL EITHER THIS IS
AN EMERGENCY OR SOMEONE IN PUBLIC LIFE ISN'T SERIOUS

TRANSIT CONGRESS CONTINUES TO POUR MILLIONS OF DOLLARS INTO A CENTRALCITY
SUBWAY IN LOS ANGELES WHILE CALIFORNIA DIRECTS HUGE SUMS OF ITS OWN TO
OTHER SUCH TRANSIT PROJECTS WHILE UPANDRUNNING COMMUTER RAIL CAN BE A
HELP IN THE CURRENT CRISIS THE MONEY FOR THE LONGERRUN AND MORE DUBIOUS
PROJECTS COULD BE DIVERTED TO SHUTTLE SERVICES RUN BY ENTREPRENEURS MAKING
MORE SUCH SERVICES LEGAL IN THE PRIVATE SECTOR COULD RESULT IN SHORTTERM
HELP

CRIME CRIME AND INCARCERATION COSTS MOUNT FASTER IN CALIFORNIA THAN IN MOST
OTHER PLACES SENDING JUVENILE FELONS TO BOOT CAMPS FAR FROM THEIR
TERRORIZED NEIGHBORHOODS COULD BRING BOTH IMMEDIATE AND LONGTERM RELIEF
THAT WILL REQUIRE ACTION BY THE LEGISLATURE AND THE JUDGES

SURELY COUNTLESS OTHER SAVINGS COULD BE HAD FROM RETHINKING THE STRICTURES
THAT CALIFORNIA AND OTHER STATES HAVE PLACED ON THEMSELVES OR HAD PLACED
UPON THEM THE POINT IS THAT INSTEAD OF THINKING NEW TAXES FIRST
POLICYMAKERS ESPECIALLY THOSE OF THE CONSERVATIVEOPPORTUNITY SOCIETY
STRIPE SHOULD BE TALKING AGGRESSIVELY NOW ABOUT MAKING A BREAK FROM PAST
PRACTICE THAT COULD CHANGE PERMANENTLY THE DIMENSIONS OF CALIFORNIA'S
QUANDARY

IF NO ONE RAISES A SHOUT AND THE STATUS QUO REMAINS UNTOUCHABLE WE MAY BE
LOOKING AT A FISCAL AND SOCIAL MESS IN CALIFORNIA WITH A FEW RESEMBLANCES TO
POSTSOVIET RUSSIA AT SOME POINT EVEN ILLUSIONISTS RUN OUT OF TRICKS
9401240112 940124 HEALTH LEGAL IMPORT OF ABORTION PILL APPEARS NEAR
  BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL

THE LEGAL ARRIVAL IN THE US OF RU 486 THE CONTROVERSIAL FRENCH ABORTION
PILL APPEARS TO BE GETTING CLOSE

AFTER A PROTRACTED NEGOTIATION THE FRENCH PHARMACEUTICAL CONCERN ROUSSEL
UCLAF SA AND THE NONPROFIT US RESEARCH ORGANIZATION KNOWN AS THE
POPULATION COUNCIL ARE SAYING THEY HOPE TO REACH A FINAL AGREEMENT IN A FEW
WEEKS TO BRING RU 486 TO THE US FOR CLINICAL TRIALS

IF EVERYTHING GOES WELL WE HOPE THAT BY THE END OF FEBRUARY OR EARLY MARCH
WE OUGHT TO HAVE AN AGREEMENT SAYS LESTER HYMAN AN ATTORNEY WITH THE
SWIDLER & BERLIN LAW FIRM IN WASHINGTON DC WHICH IS REPRESENTING ROUSSEL
UCLAF SANDRA WALDMAN A SPOKESWOMAN FOR THE POPULATION COUNCIL IN NEW YORK
SAYS THE ORGANIZATION HOPES FOR AN AGREEMENT BY THE END OF FEBRUARY AT THE
LATEST

CONTRACT NEGOTIATIONS HAVE TAKEN FAR LONGER THAN EXPECTED WHEN THE
PRELIMINARY AGREEMENT TO GRANT THE POPULATION COUNCIL THE US RIGHTS TO RU
486 WAS ANNOUNCED LAST APRIL THE DRUG WAS EXPECTED TO BE AVAILABLE FOR
TESTING IN PREGNANT AMERICAN WOMEN WITHIN A FEW MONTHS

BUT ROUSSEL UCLAF CONTINUED TO CONSIDER ALTERNATIVES PRESENTED BY OTHER
COMPANIES AND GROUPS INTERESTED IN BRINGING THE DRUG TO THE US MR HYMAN
SAYS THAT REVIEW TOOK ABOUT SIX MONTHS AND ENDED WITH THE COMPANY'S
DECISION TO GO AHEAD WITH THE POPULATION COUNCIL HE SAYS

EVEN NOW SOME PEOPLE ARE SKEPTICAL AN AGREEMENT WILL BE REACHED BETWEEN THE
COMPANY AND THE RESEARCH GROUP I NEVER THOUGHT THIS WAS LOCKED IN
CONCRETE EVERY STEP OF THE WAY THEY'RE GOING TO HAVE IMPEDIMENTS SAYS
RICHARD GLASOW EDUCATION DIRECTOR OF THE NATIONAL RIGHT TO LIFE COMMITTEE
EVEN RU 486 ADVOCATES HAVE THEIR DOUBTS WE'RE VERY WORRIED THESE DELAYS
WILL BE ENDLESS SAYS JENNIFER JACKMAN DIRECTOR OF POLICY AND RESEARCH AT
THE FEMINIST MAJORITY FOUNDATION

AFTER AN AGREEMENT IS REACHED THE POPULATION COUNCIL WILL BEGIN SETTING UP
THE CLINICAL TRIAL WHICH IT PLANS TO USE TO SEEK FOOD AND DRUG
ADMINISTRATION APPROVAL MS WALDMAN SAYS THE SPECIFIC REGIMEN FOR THE
CLINICAL TRIAL HASN'T BEEN FINALIZED MS WALDMAN SAYS BUT THE COUNCIL
EXPECTS TO TEST RU 486 IN ABOUT 2000 WOMEN SEEKING ABORTION IN THE EARLY
STAGES OF PREGNANCY UP TO 63 DAYS AFTER THE LAST MENSTRUAL CYCLE AT 10 TO
12 SITES ACROSS THE COUNTRY

DOZENS OF CLINICS HAVE ASKED TO PARTICIPATE IN THE TRIAL BUT THE FINAL
SELECTION HASN'T BEEN MADE MS WALDMAN SAYS ONE MEDICAL CENTER THAT WANTS
TO PARTICIPATE IN THE CLINICAL TRIAL IS OREGON HEALTH SCIENCES UNIVERSITY IN
PORTLAND WHICH WOULD TEST ABOUT 10 WOMEN A WEEK IF IT IS SELECTED SAYS
MARK NICHOLS AN ASSOCIATE PROFESSOR OF OBGYN AT THE UNIVERSITY ABOUT TWO
DOZEN PHYSICIANS ACROSS OREGON HAVE VOLUNTEERED TO PARTICIPATE HE SAYS

WOMEN WHO ARE JUDGED SUITABLE FOR THE TESTING WILL BE GIVEN RU 486 THEN A
PROSTAGLANDIN 48 HOURS LATER MS WALDMAN SAYS RU 486 A SYNTHETIC STEROID
CAUSES THE UTERUS TO SHED ITS LINING AND THE EMBRYO THE PROSTAGLANDIN
CAUSES UTERINE CONTRACTIONS TO HELP COMPLETE THE EXPULSION IN A STUDY
PUBLISHED LAST YEAR FRENCH RESEARCHERS FOUND THE RU 486/PROSTAGLANDIN
REGIMEN WAS 97 EFFECTIVE IN INDUCING ABORTIONS

PATIENTS WILL PROBABLY REMAIN IN THE CLINIC FOR UP TO FOUR HOURS AFTER
TAKING THE PROSTAGLANDIN MS WALDMAN SAYS IN THE FRENCH STUDY ABORTIONS
OCCURRED WITHIN FOUR HOURS IN 61 OF THE CASES THE PATIENT WILL RETURN TO
THE CLINIC TWO WEEKS LATER FOR AN EXAMINATION IF THE ABORTION HASN'T
OCCURRED A SURGICAL ABORTION WILL BE PERFORMED DR NICHOLS SAYS ONCE THE
PILL HAS BEEN TAKEN IT ISN'T RECOMMENDED THAT A PREGNANCY COME TO TERM

THE TRIAL WON'T HAVE ANY PROBLEM FINDING WOMEN TO PARTICIPATE DR NICHOLS
SAYS SINCE THE OREGON UNIVERSITY MADE PUBLIC ITS INTEREST IN PARTICIPATING
IN THE TRIAL SEVERAL MONTHS AGO IT HAS RECEIVED REGULAR PHONE CALLS FROM
WOMEN ASKING FOR RU 486 THE DOCTOR SAYS ONE WOMAN WHO THOUGHT THE CLINICAL
TRIAL WAS ALREADY UNDER WAY FLEW UP FROM CALIFORNIA IN NOVEMBER HOPING TO
GET THE DRUG HE ADDS

THE UNIVERSITY'S INTEREST IN RU 486 HAS ALSO MADE IT A TARGET OF PROTEST
FROM ANTIABORTION GROUPS THE PRESIDENT'S OFFICE RECEIVED 1400 LETTERS OF
PROTEST DR NICHOLS SAYS AND ABOUT 200 DEMONSTRATORS PROTESTED RU 486 AT
THE UNIVERSITY SEVERAL MONTHS AGO

DESPITE THE THREAT OF A BOYCOTT ABOUT 30 COMPANIES BOTH AMERICAN AND
FOREIGN HAVE EXPRESSED INTEREST IN MANUFACTURING OR DISTRIBUTING THE DRUG
IN THIS COUNTRY ACCORDING TO THE POPULATION COUNCIL WHICH WON'T IDENTIFY
THEM THE ORGANIZATION IS WAITING UNTIL IT HAS A CONTRACT WITH ROUSSEL UCLAF
BEFORE HOLDING SERIOUS DISCUSSIONS MS WALDMAN SAYS

IF THE COUNCIL AND ROUSSEL UCLAF FAIL TO REACH AN AGREEMENT SOON DEMOCRATIC
REP RON WYDEN OF OREGON SAYS HE WILL TRY TO PUT PUBLIC PRESSURE ON THE
PARTIES BY HOLDING A HEARING GIVEN THE FACT THAT THE TRIALS WERE SUPPOSED
TO START IN 1993 HE SAYS AMERICAN WOMEN HAVE WAITED LONG ENOUGH
9401240110 940124 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 11/16 LOW 2 7/8 NEAR CLOSING BID 3 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 305 30
TO 59 DAYS 307 60 TO 89 DAYS 310 90 TO 149 DAYS 313 150 TO 179
DAYS 320 180 TO 259 DAYS 330 260 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 312 30 DAYS 313 60 DAYS 316 90 DAYS

CERTIFICATES OF DEPOSIT 252 ONE MONTH 255 TWO MONTHS 255 THREE
MONTHS 269 SIX MONTHS 293 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 302 ONE MONTH 307 THREE MONTHS 322 SIX MONTHS

BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 305 90 DAYS 308 120
DAYS 312 150 DAYS 317 180 DAYS OFFERED RATES OF NEGOTIABLE
BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER

LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO
MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4  3 1/8 FOUR MONTHS 3 5/16
 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE
MONTHS 3 3/8 SIX MONTHS 3 11/16 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 587 JAPAN 3 SWITZERLAND
750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE
LENDING PRACTICES VARY WIDELY BY LOCATION

TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 18 1994 AUCTION OF
SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN
UNITS OF 10000 TO 1 MILLION 299 13 WEEKS 315 26 WEEKS

FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR
MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 686 60 DAYS 694 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 681 60
DAYS 691 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE
CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC

MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9401240109 940124 ASPIN AIDE TOPS LIST FOR PENTAGON POST CIVIL RIGHTS
NOMINATION IS EXPECTED  BY THOMAS E RICKS AND MICHAEL K FRISBY 
STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON WHITE HOUSE OFFICIALS SAID DEPUTY DEFENSE SECRETARY WILLIAM
PERRY IS THE FRONTRUNNER TO SUCCEED LES ASPIN AS PENTAGON CHIEF
SEPARATELY AN ADMINISTRATION OFFICIAL SAID BOSTON ATTORNEY DEVAL PATRICK IS
EXPECTED TO BE NAMED THE JUSTICE DEPARTMENT'S ASSISTANT ATTORNEY GENERAL FOR
CIVIL RIGHTS

THE SERIOUS CONSIDERATION OF MR PERRY FOR THE DEFENSE POST IS DRIVEN PARTLY
BY THE FACT THAT MANY MEMBERS OF THE SENATE AND HOUSE ARMED SERVICES
COMMITTEES FAVOR HIM MR PERRY A MILITARY TECHNOLOGIST AND DEFENSE
INTELLECTUAL HAS WON PLAUDITS ON CAPITOL HILL FOR THE CLARITY OF HIS
CONGRESSIONAL TESTIMONY

MR PERRY HAS BEEN ESPECIALLY PRECISE IN LAYING OUT HIS IDEAS FOR A KIND OF
TOUGH LOVE ACTIVIST DEFENSEINDUSTRIAL POLICY TO PRESERVE THE US DEFENSE
INDUSTRY WHILE ENCOURAGING IT TO SHRINK RATHER THAN MAINTAIN ITS SIZE
THROUGH INCREASED EXPORTS IN ADDITION HE IS INTIMATELY FAMILIAR WITH THE
FORMIDABLE DEFENSE BUDGET PROBLEMS THE ADMINISTRATION FACES IN THE COMING
YEARS THOSE PROBLEMS AS WELL AS CONTINUING TENSIONS BETWEEN THE
ADMINISTRATION AND THE MILITARY MIGHT DETER OTHER CANDIDATES FROM TAKING
THE JOB

THE DISADVANTAGES OF PROMOTING MR PERRY TO THE PENTAGON'S TOP SLOT ARE THAT
HE ISN'T A POLITICAL PLAYER AND IS ALREADY A MEMBER OF A NATIONAL SECURITY
TEAM THAT CRITICS SAY NEEDS BOLSTERING MOREOVER PRESIDENT CLINTON PASSED
OVER MR PERRY FOR THE PENTAGON'S TOP JOB TWICE ALREADY WHEN HE CHOSE MR
ASPIN IN DECEMBER 1992 AND WHEN HE PICKED RETIRED ADM BOBBY INMAN LAST
MONTH MR INMAN WITHDREW HIS NOMINATION LAST WEEK IN AN UNUSUAL NEWS
CONFERENCE IN WHICH HE SAID HE WAS PUT OFF BY AMONG OTHER THINGS THE
PROSPECT OF A DAILY DIET OF PRESS CRITICISM

WHITE HOUSE AIDES EMPHASIZED OVER THE WEEKEND THAT PRESIDENT CLINTON HASN'T
YET MADE A DECISION ON A NEW DEFENSE SECRETARY ALSO PENTAGON AIDES SAID IT
IS FAR FROM CLEAR WHETHER MR PERRY WANTS THE JOB INDEED ONE WHITE HOUSE
AIDE SAID OFFICIALS EVEN WERE DISCUSSING THE POSSIBILITY OF BRINGING BACK
COLIN POWELL WHO RETIRED AS CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOUR
MONTHS AGO

HOWEVER FINDING A PLACE FOR MR POWELL WOULD BE DIFFICULT EVEN IF HE DID
AGREE TO RETURN TO PUBLIC LIFE AS A FORMER SENIOR MILITARY OFFICER HE IS
BARRED BY LAW FROM BEING DEFENSE SECRETARY FOR 10 YEARS CONGRESS COULD
OVERRIDE THAT PROVISION BUT THE ADMINISTRATION WOULD FACE A DEBATE FIRST
IT ISN'T CLEAR WHERE ELSE MR POWELL COULD BE FIT INTO THE NATIONAL SECURITY
TEAM MR POWELL WAS TRAVELING OVER THE WEEKEND AND COULDN'T BE REACHED FOR
COMMENT

ONE SIGN THAT THE ADMINISTRATION IS HEDGING ITS BETS IS THAT WHITE HOUSE
COUNSELOR DAVID GERGEN DISCUSSED WITH DEFENSE SECRETARY ASPIN ON FRIDAY THE
POSSIBILITY OF FORMALLY INVITING MR ASPIN TO STAY ON AT THE PENTAGON FOR A
SET PERIOD OF TIME BUT OTHERS AT THE WHITE HOUSE SAID THIS WAS UNLIKELY
AND THAT THE ADMINISTRATION TRYING TO AVOID ADDITIONAL TROUBLE AT THE
PENTAGON SIMPLY WANTS TO KEEP MR ASPIN HAPPY UNTIL A SUCCESSOR IS FOUND

LAST WEEK THE ADMINISTRATION SOUNDED OUT FORMER NEW HAMPSHIRE SEN WARREN
RUDMAN A REPUBLICAN WHO SAID HE WASN'T INTERESTED IN THE JOB HAVING A
REPUBLICAN RUN THE PENTAGON MIGHT HELP THE PRESIDENT MAINTAIN BIPARTISAN
SUPPORT FOR BUDGET CUTS AND INSULATE HIM FROM ACCUSATIONS IN THE 1996
ELECTION THAT HE HOLLOWED OUT THE MILITARY

AS PART OF THE PROCESS OF BEGINNING ANEW THE SEARCH FOR A DEFENSE SECRETARY
VICE PRESIDENT AL GORE ALSO ASKED SENATE ARMED SERVICES COMMITTEE CHAIRMAN
SAM NUNN WHETHER HE WAS INTERESTED IN THE JOB AND AGAIN WAS TOLD NO SENIOR
ADMINISTRATION OFFICIALS EMPHASIZED THAT THE INQUIRY WAS MORE A COURTESY
THAN A JOB OFFER TO THE GEORGIA DEMOCRAT WHO HAS LED CONGRESSIONAL
OPPOSITION TO DEEP CUTS IN THE DEFENSE BUDGET AND TO A WHOLESALE LIFTING OF
THE BAN ON BEING OPENLY GAY IN THE MILITARY

MR PATRICK THE ATTORNEY WHO IS SAID TO BE IN LINE FOR THE CIVILRIGHTS
POST IS A PARTNER IN HILL & BARLOW AN OLDLINE BOSTON FIRM WHERE HE
REPRESENTED DESIREE WASHINGTON THE WOMAN WHOM BOXER MIKE TYSON WAS
CONVICTED OF RAPING THE 37YEAROLD MR PATRICK ALSO DOES FUNDRAISING FOR
THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND AS CHAIRMAN OF THE GROUP'S NEW
ENGLAND COMMITTEE

A CHICAGO NATIVE MR PATRICK JOINED THE NAACP AS A STAFF ATTORNEY AFTER
GRADUATING FROM HARVARD LAW SCHOOL AND WORKED ON VOTINGRIGHTS AND
CAPITALPUNISHMENT CASES HE IS A FRIEND OF LANI GUINIER THE FORMER NAACP
ATTORNEY WHOM PRESIDENT CLINTON LAST YEAR NOMINATED TO THE SAME JUSTICE
DEPARTMENT POST THE PRESIDENT WITHDREW MS GUINIER'S NOMINATION AFTER
EXPRESSING CONCERN ABOUT LAWREVIEW ARTICLES SHE HAD WRITTEN ON WAYS OF
INCREASING THE POLITICAL POWER OF BLACKS

LAST MONTH DISTRICT OF COLUMBIA CORPORATION COUNSEL JOHN PAYTON WITHDREW
FROM CONSIDERATION FOR THE CIVILRIGHTS JOB BECAUSE HIS EXPECTED NOMINATION
APPEARED TO FACE A PROTRACTED DELAY 9401240108 940124 WHO'S NEWS 
COMPREHENSIVE CARE CORP

COMPREHENSIVE CARE CORP ST LOUIS WILLIAM H BOUCHER A RETIRED
HEALTHCARE EXECUTIVE WAS NAMED A DIRECTOR OF THIS HEALTHCARE PROVIDER
FILLING A VACANCY LEFT BY NORMAN L PERRY WHO RESIGNED 9401240107 940124
FOUNDATION HEALTH SEES RECORD RESULTS FOR LATEST QUARTER

RANCHO CORDOVA CALIF DANIEL CROWLEY PRESIDENT AND CHIEF EXECUTIVE
OFFICER OF FOUNDATION HEALTH CORP SAID HE EXPECTS RESULTS FOR THE FISCAL
SECOND QUARTER ENDED DEC 31 TO REFLECT THE BEST QUARTER WE'VE HAD SINCE
GOING PUBLIC

SEPARATELY FOUNDATION LOST A COURT BID TO KEEP AETNA LIFE & CASUALTY CO
FROM BEING INSTALLED AS PRIME CONTRACTOR ON A HEALTH PROGRAM FOR MILITARY
RETIREES

ANALYSTS HAVE SAID THEY EXPECT THE MANAGEDHEALTHCARE COMPANY'S EARNINGS TO
BE BETWEEN 199 MILLION OR 69 CENTS A SHARE AND 233 MILLION OR 81
CENTS A SHARE PENDING AUDITORS' FINAL REVIEW OF THE FIGURES MR CROWLEY
SAID WE EXPECT TO BE ABOVE THE HIGHEND ESTIMATES

REVENUE SHOULD RISE ABOUT 45 TO 4844 MILLION MR CROWLEY SAID IN THE
YEAREARLIER QUARTER FOUNDATION HAD NET INCOME OF 96 MILLION OR 32 CENTS
A SHARE AFTER A ONETIME CHARGE OF ABOUT 124 MILLION OR 30 CENTS A
SHARE REVENUE TOTALED 3341 MILLION

ANALYSTS HAVE BEEN UNCERTAIN ABOUT THE EFFECT OF FOUNDATION'S LOSS IN JULY
OF A GOVERNMENT CONTRACT TO PROVIDE HEALTHCARE BENEFITS TO MILITARY
RETIREES AND DEPENDENTS THE CONTRACT WENT TO AETNA BUT THE DEFENSE
DEPARTMENT LAST MONTH REOPENED BIDDING AFTER A CRITICAL GOVERNMENT
ACCOUNTING OFFICE REPORT

MEANTIME FOUNDATION SOUGHT TO PREVENT AETNA FROM TAKING OVER ON FEB 1 AS
PRIME CONTRACTOR FOR THE CIVILIAN HEALTH AND MILITARY PROGRAM OF THE
UNIFORMED SERVICES ON FRIDAY A FEDERAL COURT IN ALEXANDRIA VA DENIED A
REQUEST FOR A PRELIMINARY INJUNCTION BARRING AETNA'S INSTALLATION DURING
REPROCUREMENT

FOUNDATION SAID IT FILED AN APPEAL BUT LATER ADDED IN A STATEMENT THAT IT
MIGHT PROCEED WITH PREVIOUSLY ANNOUNCED PLANS TO CUT ITS 4100PERSON
PAYROLL BY 500 TO 700 POSITIONS TO ADJUST FOR LOST BUSINESS

HOWEVER A SPOKESMAN SAID OUR MAIN CONCERN WAS GETTING THE CONTRACT
REBID THIS ISSUE ISN'T DEAD YET

MEANWHILE MR CROWLEY SAID MEMBERSHIP AT FOUNDATION'S
HEALTHMAINTENANCEORGANIZATION BUSINESS GREW TO MORE THAN 500000 AS OF
DEC 31 FROM 475000 AT THE END OF SEPTEMBER 9401240106 940124
INTERNATIONAL JAPAN'S DECEMBER TRADE SURPLUS GREW BUT ECONOMISTS CALL
FIGURE A FLUKE'  BY JENNIFER CODY STAFF REPORTER OF THE WALL
STREET JOURNAL

TOKYO JAPAN'S MERCHANDISE TRADE SURPLUS SWELLED TO 1293 BILLION IN
DECEMBER A 16 RISE FROM A YEAR EARLIER DEFYING EXPECTATIONS THAT THE
IMBALANCE HAD FINALLY PEAKED

THE DECEMBER FIGURE COMPARED WITH A SURPLUS OF 1120 BILLION A YEAR EARLIER
AND A 742 BILLION SURPLUS IN NOVEMBER FOR ALL OF 1993 THE SURPLUS SET A
RECORD JUMPING TO 12040 BILLION 13 ABOVE THE PREVIOUS HIGH OF 10663
BILLION IN 1992

AT A TIME OF RISING USJAPAN TRADE TENSIONS JAPAN'S SURPLUS WITH THE US
GREW 17 IN DECEMBER FROM A YEAR EARLIER FOR THE YEAR THE BILATERAL
IMBALANCE WAS 5019 BILLION UP 15 FROM THE YEAR EARLIER THAT'S THE THIRD
HIGHEST LEVEL ON RECORD

THE FIGURES WERE SURPRISINGLY HIGH SAID PETER J MORGAN MERRILL LYNCH &
CO ECONOMIST HE LIKE OTHER ECONOMISTS HAD FORECAST THAT THE STRONG YEN
WAS STARTING TO CURB JAPAN'S TRADE SURPLUS A STRENGTHENING YEN MAKES
JAPAN'S EXPORTS MORE EXPENSIVE WHILE MAKING IMPORTS INTO JAPAN CHEAPER

STILL MOST ECONOMISTS DISMISSED FRIDAY'S REPORT AS A FLUKE ALL THE TRENDS
ARE STILL IN PLACE SAID CHRIS CALDERWOOD AN ECONOMIST AT BARCLAYS DE
ZOETE WEDD SECURITIES LTD EVEN THOUGH BARCLAYS' FORECAST FOR THE DECEMBER
SURPLUS WAS LOW BY MORE THAN 10 HE SAID THE FIRM STANDS BY ITS OVERALL
PROJECTIONS OF A GRADUALLY DECREASING SURPLUS

A MAIN REASON FOR THE SURPRISE WAS THE SHARP DROP IN THE PRICE OF OIL ONE
OF JAPAN'S MAJOR IMPORTS WORLD OIL PRICES HAVE SOFTENED LATELY AND THE
DOLLAR PRICE FOR JAPANESE BUYERS HAS DROPPED EVEN FURTHER BECAUSE OF THE
STRENGTH OF THE YEN THE YEN WAS 12 STRONGER IN DECEMBER THAN IN THE
PREVIOUS YEAR

IT'S NOT SO MUCH THAT EXPORTS WERE STRONG BUT THAT IMPORTS WERE WEAK OR
JUST ABOUT FLAT MR MORGAN SAID

THE GROWTH IN THE SURPLUS WITH THE US WAS FUELED IN PART BY JAPANESE
ELECTRONICS COMPANIES' JACKING UP PRICES IN RESPONSE TO THE HIGH YEN
ACCORDING TO DRESDNER ABD SECURITIES ECONOMIST KUNJI OKUE BECAUSE JAPANESE
COMPANIES ARE THE SOLE MAKERS OF MANY ELECTRONICS GOODS RAISING PRICES OF
THOSE PRODUCTS DOESN'T NECESSARILY CUT SALES AND INSTEAD BOOSTS THE SIZE OF
THE SURPLUS

I'M EXPECTING THE YEN'S DEPRECIATION OVER THE NEXT FEW MONTHS MR OKUE
ADDED WHEN THAT HAPPENS IT WILL TRIGGER THE ELECTRONICS FIRMS TO STOP
HIKING PRICES

JAPAN'S ANNUAL SURPLUS WITH ASIA SURPASSED THAT WITH THE US FOR THE FIRST
TIME EVER A FINANCE MINISTRY OFFICIAL SAID JAPAN'S SURPLUS WITH ASIA
TOTALED 5359 BILLION FOR 1993 A 29 RISE ANALYSTS SAID JAPANESE
COMPANIES WERE UNLOADING EXCESS INVENTORIES IN THE REGION

JAPAN'S DECEMBER SURPLUS WITH THE EUROPEAN UNION INCREASED 97 TO 222
BILLION BUT IN CONTRAST TO THE SITUATION WITH THE US AND ASIA THE
FULLYEAR SURPLUS FELL FOR THE FIRST TIME IN THREE YEARS BY 16 TO 2632
BILLION

ADJUSTING FOR SEASONAL FACTORS THE DECEMBER TRADE SURPLUS WAS 883
BILLION UP 26 FROM NOVEMBER 9401240105 940124 INTERNATIONAL IN
GERMANY OUTSIDER PARTIES CROP UP TO CAPITALIZE ON BROAD VOTER DISCONTENT
  BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL

HAMBURG GERMANY MARKUS WEGNER CLAD IN A TWEED JACKET FRENCH CUFFS AND
SIGNET RING LOOKS MORE LIKE A TYPICAL EUROYUPPIE THAN A MENACE TO
GERMANY'S POLITICAL ESTABLISHMENT

YET THE ANTIPARTY PROGRAM OF HIS INFANT STATT PARTEI THE INSTEAD PARTY 
IS PART OF A PHENOMENON THAT IS CHANGING THE POLITICAL LANDSCAPE SINCE THE
PARTY'S SURPRISE SUCCESS IN HAMBURG'S ELECTIONS LAST SEPTEMBER WHICH
CATAPULTED IT INTO THE STATE'S GOVERNING COALITION INTEREST NATIONWIDE HAS
SNOWBALLED

MR WEGNER CROWS THAT THERE ARE NUMEROUS INSTEAD PARTY GROUPS GROUPLETS
AND ASSOCIATIONS THAT HAVE BEEN FOUNDED ALONG WITH INTERESTED INDIVIDUALS
 2000 TO 3000 OF THEM HAVE TURNED TO US POLLSTERS ESTIMATE THAT 20 OF
THE GERMAN ELECTORATE MIGHT BE SYMPATHETIC TO THE INSTEAD PARTY PEERING
THROUGH HIS TORTOISESHELL GLASSES MR WEGNER SAYS EARNESTLY I THINK
THERE IS A CERTAIN RESPONSIBILITY NOT TO DISAPPOINT THESE PEOPLE

BY PERSUADING HIS SUPPORTERS AT A WEEKEND MEETING TO BREAK OUT OF THE
CONFINES OF HAMBURG AND ESTABLISH A NATIONAL PARTY MR WEGNER HAS STARTED
FULFILLING THOSE HOPES NOT BAD FOR A SEVENMONTHOLD PARTY THAT AS HE
FREELY ADMITS HAS LITTLE PROGRAM BEYOND ITS SLOGAN PROMOTING CITIZEN
RESPONSIBILITY AGAINST PARTY POWER

ALTHOUGH IT IS THE LARGEST MR WEGNER'S ORGANIZATION IS ONLY ONE OF A
PASSEL OF NEW PARTIES NOW BEING LAUNCHED INTO THE SURF OF GERMANY'S SUPER
ELECTION YEAR WHICH WILL INCLUDE 18 ELECTIONS FOR STATE AND LOCAL
ASSEMBLIES AS WELL AS THE EUROPEAN PARLIAMENT AND THE FEDERAL BUNDESTAG

THE SUDDEN VOGUE FOR ANTIESTABLISHMENT POLITICS APPEARS TO BE ANOTHER SIGN
THAT THE COUNTRY IS IN THE GRIP OF WHAT MIGHT BE CALLED G7 DISEASE THE
POSTCOLD WAR MALADY THAT HAS PUT THE MAJOR PARTIES IN THE INDUSTRIALIZED
WORLD UNDER ENORMOUS PRESSURE AND CLAIMED SUCH VICTIMS AS MARGARET THATCHER
GEORGE BUSH AND JAPAN'S LIBERAL DEMOCRATS

SO FAR GERMANY'S AFFLICTION HAS BEEN VISIBLE IN THE PLUMMETING POPULARITY
OF CHANCELLOR HELMUT KOHL'S CHRISTIAN DEMOCRATS AND TO A LESSER EXTENT THE
LOW APPROVAL RATINGS FOR THE OPPOSITION SOCIAL DEMOCRATS BOTH PARTIES HAVE
BEEN SEEN AS INCAPABLE OF DEALING WITH THE ECONOMIC AND SOCIAL PROBLEMS
BROUGHT BY GERMAN UNITY AND RECESSION A RECENT POLL BY THE ALLENSBACH
INSTITUTE SHOWS A RECORD TWOTHIRDS OF GERMANS ARE DISAPPOINTED WITH THE
MAJOR PARTIES UP FROM 41 IN 1992

THAT HAS TRANSLATED INTO A SURGE IN POPULARITY FOR SMALLER PARTIES AT THE
EXTREMES OF THE POLITICAL SPECTRUM INCLUDING A CLUTCH OF FARRIGHT PARTIES
THE ENVIRONMENTAL GREENS AND THE PDS THE REFORMED COMMUNISTS IN EASTERN
GERMANY APPROVAL FOR THE COMMUNISTS HAS RISEN SHARPLY WITH 22 IN THE
EASTERN STATES SUPPORTING THEM

MOST OF THE NEW POLITICAL GROUPS WHICH EXPERTS SAY NUMBER IN THE THREE
FIGURES ARE FUELED BY A COMMON REVULSION AT THE SPATE OF SCANDALS THAT HAS
FORCED NUMEROUS OFFICIALS AT THE STATE AND FEDERAL LEVEL INTO RETIREMENT AND
BY A SENSE THAT THE MAJOR PARTIES ARE OSSIFIED THEY ARE WIDELY CRITICIZED
AS BEING CLOSED OFF TO NEW BLOOD AND UNRESPONSIVE TO THE CONCERNS OF
ORDINARY CITIZENS

MR WEGNER FOR EXAMPLE DECRIES THE FACT THAT GERMANY IS RULED BY A TINY
LITTLE SECTOR OF SOCIETY AND THAT BEING A RELIABLE PARTY HACK COUNTS FOR
MORE IN POLITICS THAN EXPERTISE HIS OWN RISE TO STARDOM BEGAN WHEN THE
40YEAROLD PUBLISHER SUCCESSFULLY SUED TO HAVE HAMBURG'S 1991 STATE
ELECTION OVERTURNED BECAUSE HE HAD BEEN SNUBBED BY UNDEMOCRATIC
CANDIDATESELECTION PROCEDURES IN THE PARTY TO WHICH HE THEN BELONGED THE
CHRISTIAN DEMOCRATS

IT WAS IN THE RERUN IN SEPTEMBER THAT THE INSTEAD PARTY SCORED ITS SUCCESS
WHEN IT ENTERED A COALITION WITH THE DOMINANT SOCIAL DEMOCRATS THE PARTY
WAS TRUE TO ITS PROMISES SELECTING EXPERTS WHO WERE NOT PARTY MEMBERS FOR
THE TWO CABINET POSTS IT WAS ALLOTTED

MR WEGNER'S IS NOT THE ONLY PARTY WITH NATIONAL AMBITIONS AND FORMIDABLE
POTENTIAL THE LEAGUE OF FREE CITIZENS ALSO WAS LAUNCHED OVER THE WEEKEND IN
WIESBADEN BY MANFRED BRUNNER A FORMER EUROPEAN COMMUNITY OFFICIAL WHO
BECAME FAMOUS FOR UNSUCCESSFULLY SUING THE GERMAN GOVERNMENT TO PREVENT
RATIFICATION OF THE MAASTRICHT TREATY FOR EUROPEAN UNION

MR BRUNNER PAINTS HIMSELF AS BEING BOTH MORE MARKETORIENTED AND CLOSER TO
POPULAR OPINION THAN THE MAJOR PARTIES IN GERMANY HE COMPLAINS 2000
POLITICIANS AND 2000 JOURNALISTS ENJOY A MONOPOLY IN POLITICAL LIFE
PEOPLE FROM THE BOURGEOIS CENTER FEEL UNREPRESENTED

HIS REPUTATION AMONG POLITICAL INSIDERS AS A SHREWD TACTICIAN SEEMS TO BE
CONFIRMED BY HIS CHOICE OF ISSUES BY MAKING DISCONTENT WITH THE MAASTRICHT
TREATY A CENTRAL THEME MR BRUNNER PLANS TO CAPITALIZE ON THE FACT THAT
THERE WAS LITTLE DEBATE AND NO REFERENDUM ON THE ISSUE

HE SAYS THAT 85 OF ALL GERMANS ARE AGAINST THE ECU THE CURRENCY THAT
WOULD COME INTO CIRCULATION AFTER MONETARY UNION AND FOR HOLDING ONTO THE
MARK

TALK LIKE THAT CAUSES DISCOMFORT IN AN ALREADYBELEAGUERED CHANCELLORY
ALTHOUGH THE COMPETING REFORMISTS MIGHT KNOCK EACH OTHER OUT BEFORE
OCTOBER'S FEDERAL ELECTION MR KOHL COULD FOR THE FIRST TIME FIND HIMSELF
FACING A PROTEST PARTY ON THE RIGHT THAT ISN'T STIGMATIZED BY THE RACISM AND
XENOPHOBIA OF OUTCAST PARTIES SUCH AS THE REPUBLICANS

WE HAVE A SAYING IN GERMAN SAYS ONE KOHL AIDE MANY DOGS ARE THE DEATH
OF THE RABBIT' THE MORE LITTLE PARTIES YOU HAVE THE MORE VOTERS WILL VOTE
FOR THEM THIS IS A PROBLEM FOR MR KOHL'S CHRISTIAN DEMOCRATS
9401240104 940124 TECHNOLOGY & MEDICINE DEFENSE DEPARTMENT CANCELS ITS
PLANS FOR CONTROVERSIAL AIDS VACCINE TRIAL  BY MARILYN CHASE 
STAFF REPORTER OF THE WALL STREET JOURNAL

THE DEFENSE DEPARTMENT HAS CANCELED PLANS TO CONDUCT A CONTROVERSIAL AIDS
VACCINE TRIAL

AFTER MONTHS OF WRANGLING AMONG SEVERAL FEDERAL AGENCIES OPPOSED TO THE
TRIAL OF A VACCINE MADE BY MICROGENESYS INC MERIDEN CONN THE PENTAGON
SAID IT WILL SPEND THE 20 MILLION EARMARKED FOR THE TRIAL ON VACCINE
THERAPIES AND RESEARCH THAT MEANS IT WILL REOPEN THE PROCESS AND SEEK
PROPOSALS FROM COMPANIES AND UNIVERSITIES ON HOW TO SPEND THE MONEY

THE TRIAL OF THE MICROGENESYS VACCINE WHICH IS DESIGNED TO SLOW THE
PROGRESSION OF AIDS IN PEOPLE ALREADY INFECTED WITH THE AIDS VIRUS HAS BEEN
CRITICIZED BY BOTH THE NATIONAL INSTITUTES OF HEALTH AND BY THE FOOD AND
DRUG ADMINISTRATION AS NARROW AND COMMERCIALLY MOTIVATED

THE COMPANY HIRED FORMER SEN RUSSELL LONG OF LOUISIANA TO LOBBY CONGRESS
FOR THE VACCINE TRIAL AMID CRITICISM FROM AIDS RESEARCHERS CONGRESS
ORDERED THE TRIAL AS PART OF PENTAGONFUNDING LEGISLATION LAST AUGUST
EFFORTS TO INCLUDE OTHER VACCINES IN THE TRIAL FAILED

ON JAN 4 THE NEW DIRECTOR OF THE NIH HAROLD VARMUS AND FDA COMMISSIONER
DAVID KESSLER AGAIN URGED CONGRESS IN A LETTER TO SPEND THE 20 MILLION TO
ANSWER BASIC QUESTIONS ABOUT THE IMMUNE RESPONSE

EDWARD D MARTIN ACTING ASSISTANT DEFENSE SECRETARY SUBSEQUENTLY NOTIFIED
CONGRESSIONAL COMMITTEES IN A LETTER THAT THE TRIAL WOULDN'T PROCEED MR
MARTIN ADDED THAT THE PENTAGON BELIEVES IN THE POTENTIAL OF THE
MICROGENESYS VACCINE BUT WOULD SPEND THE MONEY TOWARD GENERAL RESEARCH AND
WILL SEEK PARTICIPATION FROM THE TWO AGENCIES

MICROGENESYS CHAIRMAN FRANKLIN VOLVOVITZ TOLD THE ASSOCIATED PRESS THAT IT
WAS PREMATURE TO SAY WHETHER HIS COMPANY WOULD PARTICIPATE IN THE NEXT ROUND
OF VACCINE RESEARCH ON JAN 14 THE COMPANY WAS DEALT A BLOW WHEN THE
WYETHAYERST UNIT OF AMERICAN HOME PRODUCTS CORP INDICATED IT WOULD CEASE
PROVIDING FUNDING FOR THE VACCINE DR VOLVOVITZ WHO EARLIER DECLINED
COMMENT ON THE WITHDRAWAL BY AMERICAN HOME COULDN'T BE REACHED LATE FRIDAY
HOWEVER MICROGENESYS DIRECTOR HARVEY SADOW TOLD THE AP THAT THE COMPANY
WOULD SURVIVE THE LOSS

A SPOKESMAN FOR CHIRON CORP A BIOTECHNOLOGY COMPANY BASED IN EMERYVILLE
CALIF WHICH ALSO IS WORKING ON A VACCINE SAID THIS IS THE SOLUTION THAT
EVERYONE IN THE SCIENTIFIC COMMUNITY HAD ALWAYS BELIEVED IN

IT'S BEEN 14 MONTHS THAT PEOPLE HAVE BEEN HAGGLING OVER THIS ADDED
VACCINE DEVELOPER JACK OBIJESKI OF GENENTECH INC IN SOUTH SAN FRANCISCO
CALIF LET'S DESIGN THE BEST POSSIBLE TRIAL USING THE BEST POSSIBLE
VACCINE CANDIDATES 9401240103 940124 HAWAIIAN AIRLINES TRAFFIC RISES

HONOLULU HAWAIIAN AIRLINES A UNIT OF HAL INC SAID IT FLEW 2606
MILLION REVENUE PASSENGER MILES IN DECEMBER UP 77 FROM 2420 MILLION IN
DECEMBER 1992 ITS PLANES FLEW AT 72 OF CAPACITY UP FROM 66 PREVIOUSLY

A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE
9401240102 940124 MICHAEL BAKER SEES FOURTHPERIOD LOSS WILL TAKE
CHARGE  BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET
JOURNAL

PITTSBURGH MICHAEL BAKER CORP SAID IT WILL TAKE 13 MILLION IN AFTERTAX
EXTRAORDINARY CHARGES AND AS A RESULT POST A FOURTHQUARTER LOSS

THE ENGINEERING AND CONSTRUCTION CONCERN SAID MOST OF THE CHARGES RELATE TO
ITS DECISION TO GET OUT OF THE MILITARY HOUSING CONSTRUCTION BUSINESS

IN A LETTER TO SHAREHOLDERS CHAIRMAN RICHARD L SHAW SAID THE ACTIONS
WE'VE TAKEN TODAY ARE MORE DISAPPOINTING TO ME THAN WORDS CAN EXPRESS MR
SHAW ADDED THAT BAKER IS NOW POSITIONED TO PERFORM WELL IN 1994 AND BEYOND
AND THAT THE BALANCE SHEET REMAINS STRONG WITH MORE THAN 50 MILLION OF
STOCKHOLDERS' EQUITY AND MINIMAL DEBT

IN THE YEARAGO FOURTH QUARTER BAKER HAD NET INCOME OF 16 MILLION OR 20
CENTS A SHARE ON REVENUE OF 996 MILLION IN TRADING ON THE AMERICAN STOCK
EXCHANGE FRIDAY MICHAEL BAKER CLOSED AT 9875 DOWN 375 CENTS OR 37

BAKER SAID ITS INTELCOM SUPPORT SERVICES INC UNIT IS EXITING MILITARY
HOUSING CONSTRUCTION BECAUSE WE'VE LOST MONEY IN THAT BUSINESS IT WAS A
BUSINESS WE MANAGED POORLY THE 13 MILLION IN TOTAL CHARGES INCLUDE A 7
MILLION ADDITION TO RESERVES FOR COMPLETION OF MILITARY HOUSING CONSTRUCTION
CONTRACTS AND THE TERMINATION OF INTELCOM'S CONSTRUCTION BUSINESS THOUGH IT
IS EXITING MILITARY HOUSING INTELCOM WILL CONTINUE PERFORMING OPERATIONS
AND MAINTENANCE SERVICES ON MILITARY BASES WHICH IS A PROFITABLE BUSINESS
A BAKER SPOKESMAN SAID

THE CHARGES INCLUDE A 31 MILLION PROVISION INCLUDING 21 MILLION IN
INCREASED RESERVES FOR DOUBTFUL ACCOUNTS ACCOUNTS THAT MAY NOT BE PAID 
AND A 1 MILLION ACCOUNTING ADJUSTMENT AT BAKER'S BAKER/MO SERVICES UNIT
WHICH PROVIDES OPERATIONS AND MAINTENANCE SERVICES FOR THE ENERGY INDUSTRY
MR SHAW SAID BAKER/MO SERVICES BELIEVES WE'LL EVENTUALLY COLLECT OUR
MONEY ON THE DOUBTFUL ACCOUNTS

ALSO INCLUDED IN THE EXTRAORDINARY CHARGES IS A 19 MILLION PROVISION TO
WRITE DOWN CERTAIN ASSETS OF BAKER'S MELLON STUART CONSTRUCTION INC UNIT
AND TO DISCONTINUE MELLON STUART'S INTERNATIONAL MARKETING EFFORTS MELLON
STUART CONSTRUCTION WAS FORMED IN 1991 WHEN BAKER ACQUIRED CERTAIN ASSETS
INCLUDING EQUIPMENT FROM THE FORMER MELLON STUART CO MR SHAW SAID SOME
OF THIS EQUIPMENT HAS NOT BEEN USED SINCE THE ACQUISITION AND IS NOW WORTH
CONSIDERABLY LESS THAN WHEN WE PURCHASED IT BAKER HAS CLOSED MELLON
STUART'S OFFICES IN TAIWAN AND ABU DHABI WHICH HAVE ALREADY COST THE
COMPANY MORE THAN 1 MILLION IN 1993 MR STUART SAID HOWEVER THAT BAKER
ISN'T ABANDONING THE INTERNATIONAL MARKET

FINALLY THE CHARGES INCLUDE A 1 MILLION ADDITION TO CORPORATE RESERVES
PRIMARILY FOR THE SALE OR CLOSING OF BAKER'S SMALL WESTON GEOPHYSICAL CORP
UNIT WHICH DOES NONDESTRUCTIVE TESTING 9401240101 940124 TRANSCO ENERGY
SPENDING PLANS

HOUSTON TRANSCO ENERGY CO SAID IT PLANS 231 MILLION IN CAPITAL
EXPENDITURES IN 1994 UP FROM 170 MILLION IN 1993

THE COMPANY SAID 221 MILLION OF THE 1994 EXPENDITURES WILL GO TO ITS
NATURAL GAS BUSINESSES OF THAT AMOUNT ITS PIPELINE BUSINESSES
TRANSCONTINENTAL GAS PIPE LINE CORP AND TEXAS GAS TRANSMISSION CORP WILL
RECEIVE 217 MILLION AND ITS TRANSCO GAS MARKETING CO AND TRANSCO GAS
GATHERING CO UNITS WILL GET 4 MILLION

THE REMAINING 10 MILLION WILL GO TO TRANSCO COAL CO 9401240100 940124 EU
INFLATION ROSE IN MONTH

LUXEMBOURG INFLATION IN THE 12NATION EUROPEAN UNION INCHED UP TO A
PROVISIONAL 33 IN DECEMBER FROM 32 IN NOVEMBER BUT IT WAS DOWN FROM
36 IN DECEMBER 1992 THE EU'S STATISTICS ARM EUROSTAT SAID

DECEMBER INFLATION SLOWED IN SEVEN EU COUNTRIES AND REMAINED UNCHANGED IN
TWO EU STATES COMPARED WITH A YEAR EARLIER

THE FIGURES SHOW THAT DENMARK THE NETHERLANDS IRELAND THE UK FRANCE
AND BELGIUM MEET THE CRITERIA FOR THE MOVE TO A SINGLE CURRENCY WHICH
STIPULATES ANNUAL INFLATION SHOULDN'T BE MORE THAN 15 ABOVE THE AVERAGE OF
THE THREE LOWEST RATES TWO EU APPLICANTS FINLAND AND NORWAY ALSO MEET THE
CRITERIA WITH INFLATION RATES OF 15 AND 18 RESPECTIVELY 9401240099
940124 LETTERS TO THE EDITOR ETHANOL'S FREE RIDE AT TAXPAYERS' EXPENSE

YOUR DEC 29 POLITICS & POLICY ARTICLE DESCRIBED HOW ARCHERDANIELSMIDLAND
CO GETS ITS WAY IN WASHINGTON THROUGH SUBTLE LOBBYING TACTICS

THE ADMINISTRATION'S DECISION TO MANDATE AN EXPANDED MARKET FOR ETHANOL IS A
PROPOSED RULEMAKING THAT MUST UNDERGO THE SCRUTINY OF A PUBLIC HEARING AND
COMMENT PERIOD FOLLOWED BY JUDICIAL REVIEW BEFORE DETERMINING THE EXTENT
NEED OR LEGALITY OF A FINAL RULE GIVEN THE FARREACHING ECONOMIC
ENVIRONMENTAL AND LEGAL ISSUES SURROUNDING THE PROPOSAL AND THE GROWING
BIPARTISAN OPPOSITION TO ITS IMPLEMENTATION ITS FATE IS BY NO MEANS
CERTAIN

WHILE THE RULEMAKING COULD BE SEEN AS A BIG VICTORY FOR ETHANOL PRODUCERS
IT ACTUALLY REPRESENTS THE LATEST IN SEVERAL RECENT DEVELOPMENTS THAT REVEAL
ETHANOL'S PROLONGED MULTIMILLIONDOLLAR FREE RIDE FOR YEARS ETHANOL HAS
RECEIVED A FEDERAL TAX SUBSIDY CURRENTLY 54 CENTS TO 64 CENTS PER GALLON
COSTING TAXPAYERS ABOUT A HALFBILLION DOLLARS A YEAR THIS TREMENDOUS
FEDERAL TAX BREAK IS SWEETENED IN SOME STATES WHERE ETHANOL ENJOYS A 10 CENT
TO 50 CENT ADDITIONAL TAX BREAK

THESE SUBSIDIES WERE ANTICOMPETITIVE ENOUGH BUT NOW A MANDATED MARKET THE
FOLLY OF THIS TYPE OF MARKET INTERFERENCE HAS SENT A WAKEUP CALL TO ALL
THOSE THAT HAVE WORKED IN THE PAST TO KEEP A LEVEL COMPETITIVE PLAYING FIELD
FOR GASOLINE ADDITIVES ALTERNATIVE FUELS OR ANY OTHER MARKETS

THE LEGISLATIVE CLIMATE IS ALSO CHANGING THE PAST SPRING FOR EXAMPLE THE
ETHANOL INDUSTRY LOST A MAJOR SENATE FLOOR FIGHT TO WIN AN EXEMPTION FROM
THE PRESIDENT'S ENERGY/TRANSPORTATION TAX SEN BILL BRADLEY WHO ALONG WITH
SEN MALCOLM WALLOP LED THE EFFORT TO DEFEAT THE EXEMPTION WAS QUOTED AS
SAYING THAT IT WAS OUTRAGEOUS TO CONSIDER AN EXEMPTION FOR ETHANOL WHEN ITS
SUBSIDY IS ALREADY GREATER THAN THE TOTAL SELLING PRICE OF OTHER FUELS

LAST MONTH REP HENRY WAXMAN AND SEN JOE LIEBERMAN GATHERED 100
CONGRESSIONAL SIGNATURES FOR A LETTER TO THE PRESIDENT FORCEFULLY OBJECTING
TO ETHANOL'S EFFORTS TO UNDERMINE PROVISIONS OF THE CLEAN AIR ACT BY SEEKING
AN ENVIRONMENTAL WAIVER FROM EMISSIONS STANDARDS THE LETTER ARGUED THAT
SUCH AN EXCEPTION WOULD INCREASE SMOG IN THE NATION'S MOST POLLUTED CITIES

THERE ARE A NUMBER OF REASONS WHY THE ETHANOL MANDATE IS A BAD IDEA SUCH
AS ITS POTENTIAL TO DEPLETE THE HIGHWAY TRUST FUND TO INCREASE GASOLINE
COST TO CONSUMERS AND TO HURT ECONOMICALLY VITAL NATURALGAS MARKETS
TOPPING THIS LIST THOUGH HAS TO BE THE GENERAL ABSURDITY OF GIVING
GOVERNMENT SUBSIDIES AND NOW MANDATED MARKETS TO A MULTIMILLIONDOLLAR
COMPANY CONTROLLING NEARLY 70 OF AN INDUSTRY

IN THE MEANTIME ENVIRONMENTAL GROUPS AND REPRESENTATIVES OF THE
NATURALGASBASED METHANOL/MTBE AND OIL INDUSTRIES AND OTHER PROMISING
ALTERNATIVE FUELS WILL CONTINUE TO PRESS FOR A POLICY OF GOVERNMENT
NEUTRALITY THAT ALLOWS EACH FUEL TO COMPETE ON ITS OWN MERITS 9401240098
940124 POLICY MANAGEMENT SAYS IT BOOKED REVENUE BEFORE COMPLETION OF
ACCORDS  BY HELENE COOPER STAFF REPORTER OF THE WALL STREET
JOURNAL

POLICY MANAGEMENT SYSTEMS CORP IN A FILING IN FEDERAL COURT LAST WEEK
ACKNOWLEDGED THAT IT RECOGNIZED ON ITS FINANCIAL STATEMENTS SOME REVENUE
FROM LICENSE AGREEMENTS BEFORE THE AGREEMENTS WERE FORMALLY SIGNED

THE COMPANY IN A WRITTEN RESPONSE TO A SHAREHOLDER LAWSUIT FILED IN US
DISTRICT COURT IN COLUMBIA SC DENIED THAT IT MISREPRESENTED THE
COMPANY'S FINANCIAL HEALTH IN AN EFFORT TO ACHIEVE A CONSISTENT 20 GROWTH
AS THE LAWSUIT CHARGES IT ALSO DENIED A SERIES OF ALLEGATIONS CHARGING THE
COMPANY WITH IMPROPER ACCOUNTING PRACTICES

IN APRIL POLICY MANAGEMENT DISCLOSED THAT FIRSTQUARTER RESULTS WOULD FALL
WELL BELOW THE COMPANY'S EXPECTATIONS BECAUSE SEVERAL CONTRACTS HADN'T
CLOSED AS EXPECTED THAT NEWS PROMPTED POLICY MANAGEMENT'S SHARE PRICE TO
FALL 43 OR 3625 IN A SINGLE DAY SINCE THEN THE ACCURACY OF THE
BLYTHEWOOD SC COMPANY'S FINANCIAL REPORTING HAS BECOME THE SUBJECT OF
FEDERAL AND INTERNAL INVESTIGATIONS

IN THE COURT FILING THE COMPANY ALSO SAID THAT ON OCCASION ITS EMPLOYEES
AGREED WITH CUSTOMERS THAT THE CUSTOMER WOULD RECEIVE FUTURE SERVICES IN
EXCHANGE FOR PAYMENTS OF CERTAIN INVOICES IN THOSE CASES THE COMPANY SAID
IT RECOGNIZED THE REVENUE FROM THE INVOICES IN QUARTERS BEFORE THE CUSTOMER
RECEIVED THE SERVICES ACCORDING TO THE FILING

FURTHERMORE POLICY MANAGEMENT SAID IT DISCOVERED THAT SOME OF ITS EMPLOYEES
MAY HAVE AGREED WITH CUSTOMERS THAT AMOUNTS PAID TO POLICY MANAGEMENT AS
LICENSE FEES AND BOOKED AS CURRENT INCOME WOULD BE REFUNDED TO THE
CUSTOMER ACCORDING TO THE FILING IN THOSE CASES THE COMPANY DENIED THAT
SUCH CONDUCT WAS A REGULAR PRACTICE OF POLICY MANAGEMENT OR THAT IT WAS
INTENDED TO OR IN FACT DID MISLEAD ANY INVESTORS ACCORDING TO THE
FILING

A COMPANY SPOKESMAN SAID THAT THE STATEMENTS IN THE FILING ARE NOT AN
ADMISSION THAT THE COMPANY BROKE ANY ACCOUNTING RULES HE DID ACKNOWLEDGE
THAT SOME OF OUR EMPLOYEES WENT AGAINST COMPANY ACCOUNTING PRACTICES BUT
HE SAID THESE WERE THREE OR FOUR ISOLATED PRACTICES THAT DID NOT HAVE ANY
IMPACT ON THE COMPANY'S SHARE PRICE

THE SPOKESMAN SAID YESTERDAY THAT AN INTERNAL AUDIT BY COOPERS & LYBRAND
WILL BE RELEASED IN MIDFEBRUARY IN AUGUST POLICY MANAGEMENT DISMISSED ITS
INDEPENDENT ACCOUNTANT ARTHUR ANDERSEN & CO AND HIRED COOPERS & LYBRAND

IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY THE COMPANY'S
STOCK ROSE 1 TO 3325 INFORMATION ABOUT THE FILING WAS NOT WIDELY KNOWN
AT THE TIME THE MARKET CLOSED

SEVERAL SHAREHOLDER LAWSUITS HAVE CHARGED THAT POLICY MANAGEMENT AND
CERTAIN OF ITS EXECUTIVES ARTIFICIALLY INFLATED THE COMPANY'S RESULTS THE
COMPANY HAS DENIED ANY WRONGDOING AND SAYS THAT ITS ACCOUNTING PRACTICES ARE
SOUND 9401240097 940124 PATRIOTS TEAM REPORTEDLY IS SOLD FOR RECORD
PRICE

THE NEW ENGLAND PATRIOTS SQUAD WAS SOLD TO A LOCAL BUSINESSMAN FOR A
REPORTED 170 MILLION IN WHAT WAS TOUTED AS THE HIGHEST PRICE FOR A
PROFESSIONAL FOOTBALL TEAM

THE PREVIOUS HIGH WAS 140 MILLION FOR EXPANSION FRANCHISES AWARDED TO
CHARLOTTE AND JACKSONVILLE LATE LAST YEAR NEITHER JAMES ORTHWEIN WHO
SOLD THE TEAM NOR ROBERT KRAFT ITS NEW OWNER WOULD DISCLOSE A PRICE
THE BOSTON GLOBE HOWEVER REPORTED SUNDAY THAT THE PRICE WAS AN ESTIMATED
170 MILLION ACCORDING TO SOURCES

THE SALE MEANS THE TEAM WILL CONTINUE TO PLAY ITS GAMES AT FOXBORO STADIUM
THE FOXBORO MASS FACILITY ALSO OWNED BY MR KRAFT

APPARENTLY THE HOMEFIELD ADVANTAGE PROVED TO BE AN INSURMOUNTABLE
ADVANTAGE FOR OTHER BIDDERS WHICH INCLUDED A GROUP FROM HARTFORD CONN
AND ANOTHER FROM ST LOUIS

MR ORTHWEIN FACED THE POSSIBILITY OF A LAWSUIT IF THE PATRIOTS DID NOT
FULFILL THEIR LEASE WITH MR KRAFT TO PLAY AT FOXBORO THROUGH 2002
9401240096 940124 SEAFOOD INDUSTRY WELCOMES NEW RULES URGED BY FDA
PUBLIC CONFIDENCE CITED  BY DIANA YIN STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON BUSINESSES OFTEN GRUMBLE WHEN THE GOVERNMENT SLAPS THEM WITH
REGULATIONS BUT NOT SO THE SEAFOOD INDUSTRY WHICH WELCOMED NEW SAFETY
PROCEDURES PROPOSED LAST WEEK BY THE FOOD AND DRUG ADMINISTRATION

UNDER THE REGULATIONS SEAFOOD PROCESSORS AND IMPORTERS WOULD HAVE TO
ANALYZE THE SAFETY OF THEIR OPERATIONS USING A PROCEDURE CALLED THE
HAZARDOUS ANALYSIS CRITICAL CONTROL POINT SYSTEM THAT WAS FIRST DEVELOPED
IN 1959 FOR THE SPACE PROGRAM FDA INSPECTORS THEN WOULD CHECK FOR ADEQUATE
SAFETY MEASURES AT VARIOUS CRITICAL POINTS WHERE PRODUCTS ARE MOST LIKELY
TO SPOIL OR ENCOUNTER BACTERIA

DONNA SHALALA HEALTH AND HUMAN SERVICES SECRETARY SAID THE NEW SYSTEMATIC
APPROACH REPRESENTS A SEA CHANGE FROM THE CURRENT REGULATORY SYSTEM IN
WHICH THE FDA INSPECTS HIGHRISK OPERATIONS ANNUALLY AND OTHER OPERATIONS
ONCE EVERY THREE YEARS WE WILL BE REVIEWING WHETHER THE SAFETY SYSTEM IS
IN PLACE RATHER THAN TAKING A SNAPSHOT SHE SAID

COMPLYING WITH THE REGULATIONS WOULD COST ON AVERAGE BETWEEN 1000 AND
5000 PER COMPANY BUT WILL VARY FROM COMPANY TO COMPANY DEPENDING ON
THEIR CURRENT SAFETY PROCEDURES MS SHALALA SUGGESTED THE COSTS WOULD BE
MODEST FOR AN INDUSTRY THAT POSTED MORE THAN 35 BILLION OF SALES IN 1992

FDA COMMISSIONER DAVID KESSLER SAID THE AGENCY WILL ENFORCE THE SAFETY
PROCEDURES AGGRESSIVELY THIS IS NOT AN HONOR SYSTEM HE SAID THESE ARE
REGULATIONS AND THE GOVERNMENT HAS OVERSIGHT BUT THOMAS BILLY DIRECTOR
OF THE OFFICE OF SEAFOOD AT THE FDA SAID THE AGENCY WON'T HAVE TO HIRE MORE
INSPECTORS TO ENFORCE THE POLICY

SEAFOODINDUSTRY OFFICIALS HELPED DEVISE THE REGULATIONS AND THE INDUSTRY
GENERALLY VOICED SATISFACTION WITH THE RESULT NEW UNIFORM REGULATIONS WILL
REASSURE THE PUBLIC THAT SEAFOOD IS SAFE TO EAT SAID TIM SMITH EXECUTIVE
DIRECTOR OF THE PACIFIC COAST OYSTER GROWERS ASSOCIATION THE TRADE
ASSOCIATION FOR THE SHELLFISH INDUSTRY CONSUMER CONFIDENCE HAS BEEN
ERODING HE ASSERTED

HE ADDED THAT THE REGULATIONS WILL HELP IDENTIFY ILLEGAL HARVESTERS WHO HE
SAID NOT ONLY SELL UNSAFE AND POORQUALITY PRODUCTS BUT ALSO OVERSUPPLY THE
MARKET AND DRIVE DOWN PRICES THE FDA SAID THE RULES WOULD INCREASE SEAFOOD
PRICES AT MOST 1 IN THE FIRST YEAR AFTER THE REGULATIONS ARE ADOPTED AND
05 ANNUALLY THEREAFTER

OTHER INDUSTRY PEOPLE SAID THE NEW STANDARDS SHOULD HELP US PRODUCERS IN
FOREIGN MARKETS

WHILE THE NEW STANDARDS APPEAR TO BE A PLUS FOR THE US SEAFOOD INDUSTRY
OVERALL SOME SMALL BUSINESSES MAY LOSE OUT THE FDA SAID THAT COMPLIANCE
COSTS MAY BE HIGH ENOUGH TO CAUSE SOME FIRMS TO GO OUT OF BUSINESS

MOREOVER CONSUMER GROUPS AREN'T COMPLETELY SATISFIED THE FDA RULES ARE A
GOOD FIRST STEP  BUT THEY WON'T DO ANY GOOD WITHOUT MORE MONEY IN THE
FDA BUDGET FOR ENFORCEMENT SAID CAROLINE SMITH DEWAAL THE DIRECTOR OF
LEGAL AFFAIRS FOR PUBLIC VOICE

SOME HELD THE NEW SEAFOOD RULES AS A MODEL FOR OTHER FOODS AGRICULTURE
DEPARTMENT EFFORTS TO STRENGTHEN SAFETY REQUIREMENTS FOR MEAT AND POULTRY
HAVE BEEN STALLED PARTLY BECAUSE OF THE RELUCTANCE OF PRODUCERS SEAFOOD
SHOULD SET A GOOD PRECEDENT FOR RAW MEAT AND POULTRY SAID CAROL TUCKER
FOREMAN COORDINATOR FOR THE SAFE FOOD COALITION A CONSUMER GROUP SHE
PREDICTED THAT TOUGHER MEAT AND POULTRY RULES ARE NOW GOING TO MOVE

FDA COMMISSIONER KESSLER ESTIMATED THAT THERE ARE 30000 TO 60000
SEAFOODRELATED ILLNESSES AND INJURIES EACH YEAR PERCAPITA CONSUMPTION OF
SEAFOOD HAS DECREASED IN THE US EVEN THOUGH TOTAL CONSUMPTION HAS
INCREASED BECAUSE OF POPULATION GROWTH ACCORDING TO THE NATIONAL RESTAURANT
ASSOCIATION

THE FDA WILL CONSIDER PUBLIC COMMENT ON THE PROPOSED REGULATIONS FOR 90 DAYS
FROM THE TIME THEY ARE PUBLISHED IN THE FEDERAL REGISTER SOMETIME THIS
WEEK 9401240094 940124 TELEVISION TV INDUSTRY FIGHTS WAR FOR
INDEPENDENTS  BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL
STREET JOURNAL

A PITCHED BATTLE WILL BE WAGED THIS WEEK FOR THE ALLEGIANCE OF SOCALLED
INDEPENDENT STATIONS TELEVISION STATIONS NOT AFFILIATED WITH A NETWORK 
AT A CONVENTION OF TELEVISION PROGRAMMING EXECUTIVES IN MIAMI BEACH

FOR YEARS INDEPENDENT STATIONS HAVE OPERATED IN THE SHADOW OF THE BIGGER
NETWORKS FILLING THEIR PRIMETIME HOURS WITH RERUNS OF THEATRICAL MOVIES
NOW HOWEVER THEY ARE BEING PRESENTED WITH AN ARRAY OF ALTERNATIVES
INCLUDING BIGBUDGET SERIES WITH BIGNAME STARS AND THE CHOICE OF LINKING
UP WITH ONE OF TWO NETWORKS THAT ARE TRYING TO LAUNCH

DRIVING THE CHANGE IS THE DECREASING POPULARITY OF MOVIES BEFORE
INDEPENDENT STATIONS GET THEM MOVIES HAVE APPEARED ON MANY OTHER OUTLETS
INCLUDING PAY CABLE PAYPERVIEW HOME VIDEO AND SOMETIMES BROADCAST AND
BASIC CABLE NETWORKS

BY THE TIME THEY GET TO US IT BECOMES HARDER AND HARDER TO GET VIEWERS
SAYS AL DEVANEY SENIOR VICE PRESIDENT OF WPWRTV IN CHICAGO WHOSE STATION
AIRS MOVIES ON TUESDAYS THURSDAYS AND FRIDAYS

SO THE 270 OR SO INDEPENDENTS NOT AFFILIATED WITH ONE OF THE FOUR MAJOR
BROADCAST NETWORKS CBS INC GENERAL ELECTRIC CO'S NBC CAPITAL
CITIES/ABC INC OR NEWS CORP'S FOX ARE LOOKING FOR ALTERNATIVES WHAT
THEY WANT ARE BIGBUDGET ORIGINAL SERIES PREFERABLY ACTIONADVENTURE SHOWS
THAT VIEWERS CAN'T FIND ON THE NETWORKS

COINCIDENTALLY THOSE ARE THE SHOWS THAT ALSO SELL BEST OVERSEAS WHICH
MEANS MORE MONEY FOR PRODUCTION BUDGETS SO PROGRAM SYNDICATORS ARE TRYING
TO ACCOMMODATE WITH A RECORD DOZENPLUS ONEHOUR SHOWS FOR PRIME TIME ALL
WILL BE ON DISPLAY STARTING TOMORROW WHEN THE ANNUAL CONVENTION OF THE
NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES WHICH LINKS PROGRAM
SELLERS WITH BUYERS GETS UNDERWAY MORE THAN 10000 ATTENDEES ARE EXPECTED

ONE OF THE MOST SOUGHTAFTER IS A SERIES VERSION OF LONESOME DOVE THE CBS
MINISERIES ABOUT THE WILD WEST THERE'S ALSO A SERIES VERSION OF THE
FUTURISTIC MOVIE ROBOCOP AARON SPELLING THE CREATOR OF SUCH POPULAR
NETWORK FARE AS FOX'S SOAP OPERA BEVERLY HILLS 90210 IS OFFERING TWO
SERIES TARGETED TO FEMALE VIEWERS ROBIN'S HOODS AND HEAVEN HELP US THE
SHORTLIVED ABC POLICE SERIES SIRENS IS BEING BROUGHT BACK WITH NEW
EPISODES AND FORMER WONDER WOMAN LYNDA CARTER IS COSTARRING IN A
FRONTIER ADVENTURE HAWKEYE

BUT THE STATIONS ALSO ARE BEING AGGRESSIVELY WOOED BY TIME WARNER INC'S
WARNER BROS AND A JOINT VENTURE OF PARAMOUNT COMMUNICATIONS INC AND
CHRISCRAFT INDUSTRIES INC BOTH WANT TO CHANGE INDEPENDENTS INTO NETWORK
AFFILIATES

BOTH ENTITIES ARE TRYING TO CREATE NEW BROADCAST NETWORKS HOPING TO EMULATE
THE SUCCESS OF THE FOURTH NETWORK FOX BUT MANY ANALYSTS BELIEVE ONLY ONE
WILL GET OFF THE GROUND

THE NEW NETWORKS MUST SIGN UP STATIONS REACHING AT LEAST 70 BUT PREFERABLY
85 OF THE COUNTRY IN SOME LARGE CITIES THERE ARE TWO INDEPENDENTS SO
EACH NETWORK CAN SIGN UP AN AFFILIATE BUT IN SMALLER MARKETS WHERE THERE IS
JUST ONE INDEPENDENT THE BIDDING HAS BECOME INTENSE

SO FAR THE PARAMOUNT NETWORK WHOSE ONLY ANNOUNCED SHOW IS AN
ACTIONADVENTURE STAR TREK VOYAGER HAS LINED UP 21 STATIONS REACHING
40 OF THE COUNTRY INCLUDING TWO STATIONS THAT SIGNED ON LAST WEEK IT
WOULD LAUNCH IN JANUARY 1995 THE WB NETWORK TO BEGIN NEXT FALL WITH THE
PARTICIPATION OF TRIBUNE CO'S SEVEN INDEPENDENT STATIONS HAS SIGNED UP 19
REACHING 42 OF THE COUNTRY TRIBUNE'S CHICAGO STATION WGNTV WHICH IS
CARRIED NATIONALLY VIA CABLE ALSO HAS SIGNED ON EXTENDING THE NEW
NETWORK'S REACH TO 72 WB HASN'T ANNOUNCED ANY PROGRAMS

MANY STATIONS ARE HESITATING TO SIGN WITH EITHER AWAITING THE OUTCOME OF
THE TAKEOVER BATTLE FOR THE PARAMOUNT NETWORK'S PARENT BARRY DILLER
CHAIRMAN OF ONE BIDDER QVC NETWORK INC HAS SAID HE DOESN'T SEE THE NEED
FOR ANOTHER GENERALINTEREST BROADCAST NETWORK

OUR POSITION IS CERTAINLY TO DELAY ANY DECISION UNTIL PARAMOUNT'S FATE IS
SETTLED SAYS L LOWRY MAYS PRESIDENT OF CLEAR CHANNEL COMMUNICATIONS INC
WHICH CONTROLS THE PROGRAMMING OF A HANDFUL OF INDEPENDENT STATIONS IN SUCH
CITIES AS MEMPHIS TENN LITTLE ROCK ARK AND TUCSON ARIZ

KERRY MCCLUGGAGE CHAIRMAN OF THE PARAMOUNT TELEVISION GROUP SAYS HE'S NOT
AT ALL SURPRISED THAT STATIONS TAKE THAT DECISION VERY SERIOUSLY BUT ADDS
THAT OTHERS ARE SIGNING UP THE RACE TO LAUNCH A NEW NETWORK HE SAYS
CERTAINLY ISN'T OVER YET AND LIKELY WILL DRAG ON ANOTHER COUPLE MONTHS

BY THIS TIME NEXT YEAR ONLY A DOZEN OF THE 270 OR SO GENERALINTEREST
INDEPENDENT STATIONS WILL BE WITHOUT A NETWORK AFFILIATION PREDICTS JAMES
HEDLUND PRESIDENT OF INTV THE ASSOCIATION OF INDEPENDENT TELEVISION
STATIONS ONE INTV MEMBER JOKES THAT THE NEW NAME SHOULD BE THE ASSOCIATION
OF EMERGING NETWORK AFFILIATES

MR DEVANEY WHOSE WPWR HAS ALIGNED WITH THE PARAMOUNT NETWORK SAYS HE'S
INTERESTED IN WHAT A NEW NETWORK CAN OFFER IN FRESH PRIMETIME PROGRAMMING
BUT HE SAYS HE HAS ENOUGH SHOWS INCLUDING LONESOME DOVE THE SERIES AND
THE TWO SPELLING SHOWS TO COVER OURSELVES IF THE NETWORK DOESN'T LAUNCH

THE FIFTH AND SIXTH NETWORKS ARE STILL VERY MUCH IN QUESTION CONTENDS
DICK KURLANDER A VICE PRESIDENT AT PETRY INC WHICH ADVISES STATIONS ON
BUYING SHOWS AND EVEN IF ONE OR BOTH LAUNCH THEY WILL START SLOWLY ON A
FEW NIGHTS LEAVING STATIONS WITH PROGRAMMING HOLES TO FILL

KEITH SAMPLES PRESIDENT OF RYSHER ENTERTAINMENT WHICH IS DISTRIBUTING
LONESOME DOVE ROBOCOP AND THUNDER IN PARADISE SAYS HE'S NOT
CONVINCED EITHER NETWORK WILL NECESSARILY SUCCEED BUT HE WELCOMES
ANYTHING THAT ENCOURAGES MORE ORIGINAL PROGRAMS IN TIME PERIODS THAT
TRADITIONALLY CARRIED RERUNS

ALTHOUGH LONESOME DOVE HAS RECOGNITION WITH VIEWERS IT MUST MEET THE HIGH
STANDARDS OF THE CBS MINISERIES ON A SMALLER BUDGET THERE'S ALWAYS A BIG
RISK TAKING SOMETHING WITH AN ESTABLISHED IDENTITY HE NOTES BUT HE ADDS
THAT UNAFFILIATED STATIONS NEED SOMETHING THAT CAN BREAK THROUGH THE
CLUTTER OF MULTIPLE CHANNELS AND MAKE PEOPLE AWARE THAT YOU EXIST

SOME OF THE NEW ONEHOUR SHOWS THAT STATIONS CAN CHOOSE FROM FOR PRIMETIME
9401240093 940124 WORLD MARKETS JAPAN STOCKS FALL 43 BY MIDDAY ON
REJECTION BY PARLIAMENT FRIDAY OF POLITICAL REFORM PLAN  BY
QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL

TOKYO JAPAN'S POLITICAL CHAOS TOOK ITS TOLL ON THE TOKYO STOCK MARKET

SHARES TUMBLED 43 DURING MONDAY MORNING'S SESSION HURT BY FRIDAY'S
UNEXPECTED REJECTION IN PARLIAMENT OF LEGISLATION TO REFORM THE NATION'S
POLITICAL SYSTEM THE SHARP SELLOFF REFLECTED THE CLOUDY OUTLOOK FOR FURTHER
ECONOMIC STIMULUS IN THE COUNTRY AND SOME ANALYSTS SAID THE NEW UNCERTAINTY
SURROUNDING POLITICAL REFORM COULD TRIGGER CONTINUED SELLING THE MOST
PESSIMISTIC OF THEM SAID THE BENCHMARK NIKKEI 225STOCK INDEX COULD FALL 15
OR MORE BEFORE THE MARKET REACHES BOTTOM

STOCK PRICES HAD RISEN ON FRIDAY THE PARLIAMENTARY VOTE CAME AFTER THE
MARKET CLOSED THE SELLING BEGAN AT THE START OF TRADING MONDAY AND BY THE
END OF THE MORNING SESSION THE NIKKEI AVERAGE STOOD AT 1847125 DOWN 83618
POINTS FROM FRIDAY'S CLOSE

THE TURNABOUT WAS ALL THE MORE WRENCHING BECAUSE PRIOR TO MONDAY THE STOCK
MARKET HAD RISEN 11 SINCE THE START OF THE YEAR FOREIGNFUND MANAGERS HAD
PILED IN CONFIDENT THAT JAPANESE POLITICIANS WOULD PASS THE
POLITICALREFORM LEGISLATION THUS CLEARING THE WAY FOR BILLIONS OF DOLLARS
IN SORELY NEEDED ECONOMICSTIMULUS SPENDING

HOW FAR THE MARKET FALLS MAY DEPEND ON WHETHER SOME KIND OF
ECONOMICSTIMULUS PACKAGE CAN BE COBBLED TOGETHER SOME ANALYSTS EXPECT THE
POLITICAL TURMOIL TO DELAY ANY ECONOMIC MEASURES FOR SEVERAL WEEKS

THERE'S A 70 CHANCE THERE WON'T BE A POLITICAL COMPROMISE IN PARLIAMENT
SAID SHIGERU AKIBA DIRECTOR OF YENEQUITY TRADING AT UBS SECURITIES LTD

IF AN ELECTION IS CALLED HE SAID THE MARKET IS HEADED DOWN

NOT EVERYONE WAS AS BEARISH WE'LL PROBABLY LOSE 500 TO 1000 POINTS ON THE
NIKKEI AND THEN PEOPLE WILL SIT BACK AND DECIDE WHAT THEY WANT TO DO SAID
MARK FAWCETT A FUND MANAGER WITH INDOSUEZ GARTMORE ASSET MANAGEMENT JAPAN
LTD

INDEED A FEW BRAVE SOULS SAID ANY DECLINE COULD PRESENT A BUYING
OPPORTUNITY AN EVENT LIKE THIS REALLY TESTS THE UNDERLYING STRENGTH OR
WEAKNESS OF THE MARKET DETERMINING WHETHER THE RECENT RALLY WAS JUSTIFIED
BY SOMETHING MORE THAN EXPECTATIONS OF ADDITIONAL GOVERNMENT SPENDING SAID
PETER TASKER ADVISER TO KLEINWORT BENSON INTERNATIONAL INC

IF THERE WERE FUNDAMENTAL FORCES DRIVING THE MARKET HIGHER SINCE THE START
OF THE YEAR MR TASKER SAID IT WON'T GO DOWN TOO MUCH AND MAYBE BOUNCE
BACK BY THE END OF THE WEEK IF NOT IT WILL FALL AND KEEP GOING

EVEN BEARS SUCH AS EINOSUKE YOSHINO SENIOR VICE PRESIDENT OF CAPITAL
MANAGEMENT AREN'T GIVING UP ON JAPAN ALTOGETHER ALTHOUGH THE FUND MANAGER
SAID I CAN'T TAKE A CONSTRUCTIVE ATTITUDE ABOUT THE MARKET FOR TWO
MONTHS HE ADDED THAT HIS COMPANY WILL BUY WHEN IT'S CHEAPER HE THINKS
THE NIKKEI COULD BOTTOM AT ABOUT 16400 BEFORE THEN

FOR WEEKS TOKYO BROKERS HAD BRAGGED OF TAKING IN MORE OVERSEAS ORDERS THAN
THEY COULD PLACE IN THE WAKE OF FRIDAY'S UNEXPECTED VOTE IN PARLIAMENT
THE MARKET WILL DEFINITELY MOVE LOWER BUT THERE ARE WILLING BUYERS WHO
MISSED THE BOAT SAID KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD
SECURITIES JAPAN LTD

FOREIGNERS ARE STILL POSITIVE ABOUT THE JAPANESE MARKET MR AKIBA SAID
PROVIDED THERE'S NO SNAP ELECTION AND SOME KIND OF ECONOMIC PACKAGE WE'VE
EVEN SEEN A FEW FOREIGN BUYING ORDERS AT FRIDAY'S PRICES

THE FOREIGN BUYING MAY COME UP AGAINST A FORMIDABLE AMOUNT OF JAPANESE
SELLING HOWEVER AS COMPANIES LOOK TO THEIR MARCH 31 BOOK CLOSING WITH
ECONOMIC STIMULUS NOW LIKELY TO BE DELAYED COMPANIES MAY RUSH TO TAKE
PROFITS WHILE STOCK PRICES ARE STILL HIGH

IN FRIDAY'S TRADING PRIOR TO THE PARLIAMENTARY VOTE THE NIKKEI AVERAGE
ROSE 12351 POINTS TO 1930743 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED
AT 450 MILLION SHARES DOWN FROM 562 MILLION SHARES THURSDAY GAINERS
OUTNUMBERED DECLINERS 633424 THE TOKYO STOCK PRICE INDEX OR TOPIX OF
FIRSTSECTION ISSUES WHICH ADDED 964 ON THURSDAY ADVANCED 1912 POINTS
OR 12 TO 156991

LONDON SHARE PRICES ROSE ON STRONG ECONOMIC DATA AND SOME TECHNICAL TRADING
WHILE FRANKFURT EQUITIES SANK UNDER PRESSURE OF PROFITTAKING IN A NERVOUS
MARKET

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11456 UP 018 REFLECTING AN INCREASE IN ASIA/PACIFIC MARKETS
AND DROPS IN MARKETS IN THE AMERICAS AND EUROPE

HEAVYCONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD
INDUSTRY GROUPS CLOSING AT 9321 UP 182 OR 2 WITH SUMITOMO
CONSTRUCTION CO OF JAPAN POSTING A 75 GAIN IN ITS LOCAL CURRENCY TOY
STOCKS TRAILED AT 9178 DOWN 240 OR 26 WITH ELECTRONIC ARTS INC OF
THE US SLIDING 47 IN LOCAL CURRENCY

MOST OTHER MAJOR ASIAN AND PACIFIC MARKETS FINISHED HIGHER ON FRIDAY

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX CLIMBED 142 POINTS
TO 34842 THE FT 30 INDEX GAINED 94 TO 26685 VOLUME TOTALED 9799
MILLION SHARES OFF FROM 111 BILLION ON THURSDAY

SHARES WERE JOLTED UPWARD BY A REPORT THAT BRITAIN'S GROSS DOMESTIC PRODUCT
ROSE 07 IN THE FOURTH QUARTER FROM THE THIRD QUARTER AND WAS UP 25 FROM
A YEAR EARLIER SLIGHTLY MORE THAN EXPECTED THE GOVERNMENT ALSO REPORTED
THAT THE DECEMBER GROWTH IN THE M4 MONEYSUPPLY MEASURE EXCEEDED MARKET
ESTIMATES

IN FRANKFURT THE DAX 30STOCK INDEX OF BLUECHIPS WHICH FELL 1818 POINTS
ON THURSDAY DROPPED 4059 POINTS INVESTORS WERE DISAPPOINTED BY THE GERMAN
CENTRAL BANK'S DECISION THURSDAY TO LEAVE KEY GERMAN INTEREST RATES
UNCHANGED THE MARKET WAS ALSO SKITTISH AS PLAYERS ADJUSTED POSITIONS FOR
FRIDAY'S DOUBLE WITCHING THE FINAL TRADING DAY FOR OPTIONS ON STOCKS AND
STOCK FUTURES

OTHER EUROPEAN MARKETS WERE MIXED

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
9401240092 940124 MARKETING & MEDIA CABLE NETWORKS DEVELOPING 
VIOLENCE RATINGS SYSTEM

NEW YORK THE NATION'S LARGEST CABLE NETWORKS ARE FINALIZING A PLAN TO
ADDRESS VIOLENCE IN PROGRAMMING BY DEVELOPING A RATINGS SYSTEM AND THE USE
OF AN INDEPENDENT MONITOR

THE PLAN THE DETAILS OF WHICH ARE STILL BEING WORKED OUT COULD BE UNVEILED
AS EARLY AS THIS WEEK WHEN THE NATIONAL CABLE TELEVISION ASSOCIATION PLANS
TO BRIEF CONGRESS THE ISSUE IS SHARPLY DIVIDING CABLE FROM ITS BROADCAST
NETWORK COUNTERPARTS WHO ARE ADAMANTLY OPPOSED TO A RATINGS SYSTEM

THE PLAN IS A RESPONSE TO INCREASING CALLS FROM CONGRESS LED BY SEN PAUL
SIMON D ILL AND REP ED MARKEY D MASS TO IMPOSE REGULATIONS ON
VIOLENCE IN TV PROGRAMMING

KEY POINTS OF THE PLAN INCLUDE SETTING UP A VIOLENCE RATINGS SYSTEM FOR
CABLE PROGRAMMING AND THE USE OF AN INDEPENDENT MONITOR TO REPORT ANNUALLY
ON THE LEVEL OF VIOLENT CONTENT THE NCTA'S PROGRAMMING COMMITTEE ENDORSED
THE USE OF A VCHIP A TECHNOLOGY THAT WOULD ALLOW VIEWERS TO BLOCK OUT
CERTAIN SHOWS CONTAINING VIOLENT SCENES

CABLE PROGRAMMERS ARE CURRENTLY PUTTING A COMPREHENSIVE VIOLENCE PLAN INTO
FINAL FORM AN NCTA SPOKESWOMAN SAID AND WE ARE ENCOURAGING THE
BROADCASTERS TO JOIN US 9401240089 940124 LAW LEGAL BEAT MRS
CLINTON'S FORMER LAW FIRM DEFENDS ACTIONS ON WHITEWATER  BY ELLEN
JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL

PARTNERS AT HILLARY RODHAM CLINTON'S FORMER LAW FIRM IN ARKANSAS SAY THEY
FULLY DISCLOSED TO FEDERAL REGULATORS THEIR WORK FOR THE THRIFT AT THE
CENTER OF THE WHITEWATER AFFAIR

A LAWYER FOR THE ROSE LAW FIRM ALSO SAID MRS CLINTON PLAYED A MUCH SMALLER
ROLE THAN HAS BEEN REPORTED IN REPRESENTING THE THRIFT MADISON GUARANTY
SAVINGS & LOAN IN A MATTER THAT CAME BEFORE A STATE REGULATOR APPOINTED BY
THENGOV BILL CLINTON

THE FEDERAL DEPOSIT INSURANCE CORP HAS BEEN LOOKING INTO WHETHER THE ROSE
LAW FIRM FULLY DISCLOSED ITS PRIOR RELATIONSHIP WITH MADISON WHEN THE FIRM
WAS HIRED BY REGULATORS TO HANDLE A LAWSUIT THE THRIFT HAD FILED AGAINST ITS
AUDITOR THE FDIC TOOK OVER MADISON IN 1989

THE CLINTONS' PARTNERSHIP WITH MADISON'S OWNER IN WHITEWATER DEVELOPMENT CO
IS BEING INVESTIGATED BY AN INDEPENDENT COUNSEL APPOINTED BY US ATTORNEY
GENERAL JANET RENO AMONG THE QUESTIONS THE PROSECUTOR ROBERT FISKE JR IS
LIKELY TO LOOK AT IS WHETHER MONEY FROM THE NOWDEFUNCT THRIFT WAS
IMPROPERLY USED TO PAY OFF MR CLINTON'S CAMPAIGN DEBT WHEN HE RAN FOR
GOVERNOR FRIDAY IT WAS ALSO DISCLOSED THAT A FEDERAL GRAND JURY HAD
SUBPOENAED RECORDS FROM CURRENT ARKANSAS GOV JIM GUY TUCKER AND OTHERS
INVOLVING THE CLINTONS' ROLE IN WHITEWATER

IN INTERVIEWS LAST WEEK ROSE PARTNERS SAID THAT ON SEVERAL OCCASIONS TWO
PARTNERS AT THE FIRM ALERTED THRIFT OFFICIALS TO POTENTIAL CONFLICTS BECAUSE
OF THEIR RELATIONSHIP WITH MADISON EACH TIME REGULATORS DECIDED THAT THE
POTENTIAL CONFLICTS WEREN'T OF CONSEQUENCE THE LAWYERS SAID

TYPICALLY UNDER LEGALETHICS RULES CONFLICTS OF INTEREST ARE MITIGATED BY
FULL DISCLOSURE AND CLIENTS' APPROVAL OF THE FIRM'S CONTINUED
REPRESENTATION

THERE WERE THREE AREAS OF CONCERN OVER CONFLICTS ACCORDING TO ROSE
PARTNERS IN THE MID1980S MRS CLINTON AND ANOTHER LAWYER IN THE FIRM
REPRESENTED MADISON IN TWO MATTERS BEFORE THE STATE SECURITIES COMMISSIONER
ACCORDING TO ROSE PARTNERS RONALD M CLARK AND GARY N SPEED THAT PRIOR
REPRESENTATION WAS DISCLOSED TO THE FDIC BY THENPARTNER WEBSTER L HUBBELL
MR HUBBELL IS NOW ASSOCIATE ATTORNEY GENERAL

MR SPEED WHO DID MOST OF THE WORK FOR THE FDIC IN THE SUIT AGAINST THE
AUDITOR FROST & CO RECALLS THAT WHEN HE BECAME INVOLVED IN THE CASE HE
WAS CONCERNED THAT THE FIRM'S PRIOR REPRESENTATION OF MADISON MIGHT CREATE
AN APPEARANCE OF A CONFLICT OF INTEREST HE SAID HE RAISED THE QUESTION WITH
MR HUBBELL HE ASSURED ME LATER THAT IT WAS FULLY DISCLOSED TO THE FDIC
AND THAT THERE WAS NO PROBLEM MR SPEED SAID

MR HUBBELL COULDN'T BE REACHED FOR COMMENT CARL STERN A JUSTICE
DEPARTMENT SPOKESMAN SAID THAT MR HUBBELL HAS SAID HE ORALLY DISCLOSED
THE PRIOR RELATIONSHIP TO THE FDIC

MR SPEED ALSO NOTED THAT THE LAW FIRM'S POSITION IN THE SUIT AGAINST FROST
OVER AUDITS CONDUCTED IN THE MID1980S WAS NOT INCONSISTENT WITH ANY WORK
THE LAW FIRM HAD PREVIOUSLY DONE FOR MADISON A KEY FACTOR IN ANY
CONFLICTOFINTEREST ANALYSIS WE HADN'T DONE ANY REVIEW OF  THE
FINANCIAL STATEMENTS OF MADISON HE SAID

CHARLES W WOLFRAM A LEGALETHICS SPECIALIST AT CORNELL LAW SCHOOL SAID HE
SEES NO PROBLEM AT ALL IN ROSE'S REPRESENTATION OF THE FDIC BECAUSE ONCE
THE AGENCY HAD TAKEN OVER MADISON IT WAS NOT AN ADVERSARY OF THE S&L 
 THEY'RE JUST LIKE A TRUSTEE IN BANKRUPTCY

MR SPEED SAID HE CONTINUED TO WORRY ABOUT POTENTIAL CONFLICTS AND TO MAKE
FURTHER DISCLOSURES PARTICULARLY WORRISOME HE SAID WAS THE RELATIONSHIP
OF MR HUBBELL'S FATHERINLAW SETH WARD WITH MADISON MR WARD A FORMER
MADISON EMPLOYEE HAD SETTLED A TANGLED COURT DISPUTE OVER SALES COMMISSIONS
AND A LOAN HE HAD RECEIVED FROM THE THRIFT HIS SETTLEMENT REDUCED THE
AMOUNT THAT ROSE WAS ABLE TO DEMAND FROM FROST FOR LOSSES SUSTAINED BY THE
THRIFT

MR SPEED SAID THAT TO ALLAY THE FIRM'S CONFLICT CONCERNS MR HUBBELL'S
RELATIONSHIP WITH MR WARD WAS DISCLOSED BY ROSE LAWYERS TO RESOLUTION TRUST
CORP ATTORNEY APRIL BRESLAW AND OTHER THRIFT REGULATORS DURING NUMEROUS
CONVERSATIONS

MR SPEED SAID HE AND MR HUBBELL HAD ANOTHER CONVERSATION WITH MS BRESLAW
ON THE SUBJECT OF CONFLICTS AFTER ROSE HIRED AN ATTORNEY WHO HAD ONCE WORKED
AT MADISON SHE CONCLUDED THAT IT WAS NOT A PROBLEM HE SAID MS BRESLAW
DECLINED TO COMMENT

PETER KUMPE A LITTLE ROCK LAWYER FOR THE AUDITOR FROST SAID THAT THE ROSE
LAW FIRM'S CONNECTION WITH MADISON WAS NO SECRET AT ALL HE SAID THAT MS
BRESLAW WAS ACTIVELY INVOLVED IN THE LITIGATION AND THAT HE ASSUMED SHE KNEW
OF ROSE'S RELATIONSHIP WITH MADISON

THE FDIC HAS SAID THAT IT KNEW ABOUT THE RELATIONSHIP BETWEEN MADISON AND
MR HUBBELL'S FATHERINLAW BUT THAT ITS LAWYERS DIDN'T RECALL BEING TOLD
ABOUT ROSE'S PREVIOUS REPRESENTATION OF THE THRIFT IN A STATEMENT THE FDIC
SAID IT WAS INVESTIGATING ALTHOUGH IT HAD NO REASON TO BELIEVE WE WERE
MISLED

ROSE PARTNERS ALSO SAID THEY DON'T BELIEVE MRS CLINTON'S ROLE IN THE FIRM'S
REPRESENTATION OF MADISON BEFORE THE STATE'S SECURITIES COMMISSIONER WAS
IMPROPER WE DON'T SEE THAT HILLARY'S DONE ANYTHING UNETHICAL IN THIS
SITUATION MR CLARK SAID

MRS CLINTON WAS INVOLVED IN REPRESENTING THE THRIFT BEFORE SECURITIES
COMMISSIONER BEVERLY BASSETT SCHAFFER WHO WAS APPOINTED BY THENGOV
CLINTON AT ISSUE WAS THE THRIFT'S EFFORT TO GAIN STATE REGULATORY
PERMISSION TO ISSUE PREFERRED STOCK BUT PEOPLE FAMILIAR WITH THE MATTER
SAID THAT RICHARD MASSEY ANOTHER ROSE ATTORNEY DID ALMOST ALL OF THE WORK
ONE ROSE LAWYER SAID HE DOESN'T KNOW OF ONE INSTANCE IN WHICH MRS CLINTON
APPEARED BEFORE A STATE REGULATOR AND I DON'T KNOW ANYONE THAT DOES

THE FACT THAT MS SCHAFFER HAD COMMUNICATED WITH THE ROSE FIRM IN A LETTER
ADDRESSED DEAR HILLARY HAD RAISED SUSPICIONS THAT MRS CLINTON HAD BEEN
DIRECTLY INVOLVED IN PRESSING THE MATTER BEFORE MS SCHAFFER

IN AN INTERVIEW MS SCHAFFER SAID THAT MRS CLINTON NEVER CAME TO ANY
MEETINGS CHARLES HANDLEY AN AIDE TO MS SCHAFFER WHO WORKED ON THE
MADISON MATTERS ALSO RECALLS NO INSTANCE WHEN MRS CLINTON DEALT WITH THE
STATE SECURITIES DEPARTMENT MS SCHAFFER SAID THAT NEITHER SHE NOR HER
STAFF KNEW OF THE CLINTONS' BUSINESS DEALINGS WITH JAMES MCDOUGAL MADISON'S
OWNER SHE SAID SHE MERELY CONCURRED WITH THE ROSE FIRM'S OPINION THAT THE
STOCK PLAN WASN'T INCONSISTENT WITH STATE LAW NO FINAL PLAN WAS FILED WITH
THE DEPARTMENT MUCH LESS APPROVED BY ME AS SECURITIES COMMISSIONER MS
SCHAFFER SAID

AS EVIDENCE THAT MS SCHAFFER WASN'T SIMPLY DOING MADISON'S OR MRS
CLINTON'S BIDDING MR CLARK POINTS OUT THAT THE SECURITIES COMMISSIONER
MADE IT DIFFICULT FOR THE THRIFT TO PURSUE A SEPARATE PLAN INVOLVING THE
OPERATION OF A BROKERAGEFIRM SUBSIDIARY MADISON'S BROKER/DEALER APPLICATION
WAS APPROVED BY MS SCHAFFER IN THE FALL OF 1985 BUT ONLY ON THE CONDITION
THAT IT MET THE FEDERAL NET CAPITAL REQUIREMENT BY THE END OF THAT YEAR
THAT DEADLINE PASSED UNMET

THE ROSE FIRM HAS ALSO COME UNDER SCRUTINY BECAUSE MADISON PUT THE FIRM ON
RETAINER FOR THE WORK SUPERVISED BY MRS CLINTON THE FIRM COLLECTED 2000
A MONTH FOR A 15MONTH PERIOD MR CLARK NOTED HOWEVER THAT THE FIRM
EVENTUALLY DETERMINED OUR WORK WAS SO SPORADIC THAT WE COULDN'T JUSTIFY THE
RETAINER IN JULY 1986 HE SAID THE FIRM RETURNED 6400 TO MADISON

FORMER MERRILL LYNCH & CO JUNKBOND ANALYST EDWARD L SCHERER WAS SENTENCED
TO A SIXMONTH PRISON TERM AND TWO YEARS OF PROBATION FOR DEFRAUDING THE
FIRM OF AS MUCH AS 1 MILLION IN POTENTIAL PROFIT

MR SCHERER 33 YEARS OLD WAS CONVICTED BY A FEDERAL JURY IN MANHATTAN IN
AUGUST ON CONSPIRACY WIRE FRAUD AND BRIBERY CHARGES THE SAME JURY
ACQUITTED ELLIS J STRELITZ A MERRILL CLIENT AND FRIEND OF MR SCHERER'S
OF PARTICIPATION IN THE SCHEME

PROSECUTORS HAD ALLEGED THAT MR SCHERER SOLD JUNK BONDS OWNED BY MERRILL AT
CUTRATE PRICES TO MR STRELITZ WHO THEN AGREED TO KICK BACK TWOTHIRDS OF
THE PROFITS ON SUBSEQUENT TRADES A THIRD MERRILL TRADER RICHARD KURSMAN
ALLEGEDLY RIGGED THE PRICES ON THE BONDS HE PLEADED GUILTY TO A SINGLE
COUNT OF WIRE FRAUD AND TESTIFIED AGAINST THE OTHER TWO

MR SCHERER HAD FACED MORE THAN TWO YEARS IN PRISON AND A 1 MILLION FINE
UNDER FEDERAL SENTENCING GUIDELINES BUT JUDGE KEVIN T DUFFY WHO IS ALSO
PRESIDING OVER THE WORLD TRADE CENTER BOMBING TRIAL DERIDED THE SILLINESS
OF THE GUIDELINES IN IMPOSING A SENTENCE BELOW THE SUGGESTED RANGE

VANNA WHITE WON A JURY VERDICT OF 403000 AGAINST SAMSUNG ELECTRONICS CO
AND ITS ADVERTISING AGENCY IN A CASE THAT EXPANDS CELEBRITIES' PROTECTION
FROM UNAUTHORIZED USES OF THEIR LIKENESSES

THE FEDERAL COURT JURY IN LOS ANGELES SAID THE SOUTH KOREAN COMPANY AND THE
ADVERTISING AGENCY DEUTSCH/DWORIN INC VIOLATED MS WHITE'S RIGHT OF
PUBLICITY WITH AN ADVERTISEMENT DEPICTING A LETTERTURNING ROBOT IN A
VANNALIKE WIG AND GOWN MS WHITE WHO IS A STAR OF THE TELEVISION SHOW
WHEEL OF FORTUNE DIDN'T GIVE PERMISSION FOR THE AD WHICH BORE THE
CAPTION LONGEST RUNNING GAME SHOW 2012 AD AND WHICH WAS INTENDED TO
SUGGEST THE LONG LIFE OF SAMSUNG PRODUCTS

MS WHITE WON COMPENSATORY DAMAGES OF 205000 FROM SAMSUNG AND 198000
FROM DEUTSCH/DWORIN NEW YORK THE COMPANIES DECLINED TO COMMENT ON THE
JURY'S FINDINGS DEUTSCH/DWORIN SAID IT PROBABLY WON'T APPEAL

IN A NOTABLE DECISION IN THE CASE LAST YEAR THE NINTH US CIRCUIT COURT OF
APPEALS EXPANDED ON EARLIER RULINGS THAT STOPPED ADVERTISERS FROM USING
CELEBRITY FACES AND NAMES WITHOUT PERMISSION THE COURT SAID CELEBRITIES
ALSO HAVE THE RIGHT TO CONTROL LIKENESSES OF THEMSELVES SUCH AS THE
LETTERTURNING ROBOT

PHILIP M COWAN HEAD OF THE NEW YORK STATE BAR SECTION ON ENTERTAINMENT
LAW SAID ADVERTISERS HAVE SINCE BECOME MORE CAUTIOUS ABOUT APPROPRIATING
CELEBRITY IMAGES

A FEDERAL JUDGE IN HOUSTON OVERTURNED TWO NEW TEXAS LAWS THAT WERE DESIGNED
TO KEEP LAWYERS AND DOCTORS FROM RUSHING TO SOLICIT BUSINESS FROM ACCIDENT
VICTIMS

ONE OF THE MEASURES WOULD BAR LAWYERS HEALTH PROFESSIONALS AND PRIVATE
INVESTIGATORS FROM WRITING TO ACCIDENT VICTIMS TO SOLICIT THEIR BUSINESS
WITHIN 30 DAYS OF THE ACCIDENT THE PROVISION ALSO WOULD BAR WRITTEN
SOLICITATIONS OF CRIMINAL DEFENDANTS WITHIN 30 DAYS OF THEIR ARREST

THE SECOND MEASURE WOULD KEEP LAWYERS AND HEALTH PROFESSIONALS FROM
OBTAINING ACCESS TO AN ACCIDENT REPORT WITHIN 180 DAYS OF AN ACCIDENT BUT
INSURANCE AGENTS AND NEWS REPORTERS WOULD HAVE IMMEDIATE ACCESS

THE LAWS WERE CHALLENGED BY LAWYERS CHIROPRACTORS AND ORGANIZATIONS THAT
RESEARCH PUBLIC RECORDS FOR A FEE US DISTRICT JUDGE DAVID HITTNER WHO IN
AUGUST TEMPORARILY ENJOINED ENFORCEMENT OF THE MEASURES THIS WEEK RULED
THAT THEY VIOLATED THE FIRST AMENDMENT'S PROTECTION OF COMMERCIAL SPEECH

A SPOKESWOMAN FOR THE TEXAS ATTORNEY GENERAL'S OFFICE SAID SHE EXPECTED THE
STATE TO APPEAL THE RULING MARY MOORE ET AL VS DAN MORALES ET AL US
DISTRICT COURT HOUSTON CIV NO H932170 9401240088 940124 BOEING
SCALES BACK TARGET FOR CUTTING ITS PAYROLL

SEATTLE BOEING CO SAID IT WILL CUT 3000 FEWER JOBS THAN ANTICIPATED A
YEAR AGO WHEN IT FORECAST IT WOULD CUT 27000 JOBS TO ACCOMMODATE A SHARP
SLOWDOWN IN PRODUCTION OF COMMERCIAL AIRPLANES

THE AIRPLANE MAKER WHICH HAS BEEN SCALING BACK ITS RATE OF PRODUCTION IN
THE FACE OF WEAK DEMAND FOR JETS FROM AIRLINES SAID IT CUT ABOUT 17000
POSITIONS LAST YEAR THROUGH LAYOFFS AND ATTRITION

BOEING ALREADY HAS ELIMINATED 1451 JOBS THIS YEAR AND IT PLANS 7000 TOTAL
JOB REDUCTIONS DURING 1994 WITH MOST OF THOSE OCCURRING IN THE FIRST HALF
OF THE YEAR

WHILE EMPLOYMENT IS DECLINING SHARPLY AT BOEING FACTORIES IN THE SEATTLE
AREA ABOUT 1000 JOBS ARE BEING ADDED IN WICHITA KAN WHERE THE COMPANY
IS PREPARING FOR EARLY PHASES OF PARTS PRODUCTION FOR ITS NEW 737700 MODEL
THAT PLANE WHICH UNTIL RECENTLY HAS BEEN CALLED THE 737X IS AN ADVANCED
REMODELED VERSION OF THE 737 AIRLINER THE COMPANY HAS BEEN SELLING FOR 25
YEARS

IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE BOEING SHARES
CLOSED AT 45125 UP 625 CENTS 9401240087 940124 MARKETING & MEDIA 
NBC'S LITTLEFIELD SILENCES RUMORS RENEWS CONTRACT

LOS ANGELES NBC ENTERTAINMENT PRESIDENT WARREN LITTLEFIELD SIGNED A NEW
THREEYEAR CONTRACT WITH THE NETWORK ENDING A YEAR OF SPECULATION THAT HE
WAS ON HIS WAY OUT

MANY HAD EXPECTED MR LITTLEFIELD TO LEAVE THE GENERAL ELECTRIC CO UNIT
AFTER DON OHLMEYER WAS NAMED NBC'S WEST COAST PRESIDENT LAST FEBRUARY
ADDING A LAYER OF MANAGEMENT BETWEEN MR LITTLEFIELD AND NBC PRESIDENT
ROBERT WRIGHT

NBC IS IN THIRD PLACE AMONG THE THREE MAJOR BROADCAST NETWORKS THIS SEASON
ALTHOUGH IT PERFORMED WELL AMONG ADVERTISERSOUGHTAFTER DEMOGRAPHIC GROUPS
IN THE IMPORTANT NOVEMBER RATINGS PERIOD AND HAS A HIT IN ITS NEW SITCOM
FRASIER 9401240086 940124 BENTSEN WARNS RUSSIA TO CURB RISING
INFLATION

TOKYO TREASURY SECRETARY LLOYD BENTSEN WARNED RUSSIA THAT THE RECEIPT OF
INTERNATIONAL AID TO SUPPORT ITS ECONOMIC REFORM EFFORTS DEPENDS ON MOSCOW'S
SUCCESS IN CURBING INFLATION

I'M TROUBLED BY SOME OF THE INDICATIONS WE ARE GETTING OUT OF RUSSIA MR
BENTSEN SAID HERE WHERE HE STOPPED TO PRESS JAPAN TO MOVE FORWARD IN
OPENING ITS MARKETS TO US PRODUCTS THERE IS NO WAY TO HAVE A HEALTHY
ECONOMY WITHOUT CONTROLLING INFLATION AND NO WAY TO SLOW INFLATION WITHOUT
CONTROLLING BUDGET DEFICITS AND CREDIT GROWTH

DURING THE MOSCOW SUMMIT 10 DAYS AGO MR BENTSEN PRAISED PRESIDENT BORIS
YELTSIN'S COMMITMENT TO ECONOMIC REFORM SINCE THEN SOME LEADING REFORMERS
HAVE QUIT THE CABINET AND PARLIAMENTARY LEADERS SAY THEY INTEND TO SLOW
EFFORTS TO CONTROL INFLATION END SUBSIDIES TO INEFFICIENT INDUSTRIES AND
MOVE TO A MARKET ECONOMY

SEPARATELY THE GOVERNMENTS THAT HAVE LENT ABOUT 54 BILLION TO RUSSIA
AGREED TO EXTEND A DEBTRESTRUCTURING ARRANGEMENT THEY REACHED LAST YEAR
THAT AGREEMENT RESCHEDULED ABOUT 15 BILLION OF INTEREST AND PRINCIPAL
PAYMENTS THAT WERE DUE LAST YEAR ALTHOUGH LAST YEAR'S AGREEMENT HAS
EXPIRED THE TERMS WILL REMAIN IN PLACE AT LEAST UNTIL APRIL THIS YEAR
MOSCOW IS SUPPOSED TO PAY ABOUT 10 BILLION BUT THAT WILL POSSIBLY BE
DELAYED IN LATER NEGOTIATIONS 9401240085 940124 SEC PROPOSAL WOULD AID 
TRACKING OF US SECURITIES

WASHINGTON REGULATORS' ABILITY TO KEEP TRACK OF THE GOVERNMENTSECURITIES
MARKET WOULD BE IMPROVED BY A PROPOSAL TO GIVE THEM GREATER ACCESS TO
CLEARING INFORMATION

UNDER THE PROPOSAL PUBLISHED BY THE SECURITIES AND EXCHANGE COMMISSION THE
GOVERNMENT SECURITIES CLEARING CORP WOULD BE AUTHORIZED TO RELEASE TRADING
DATA TO THE FEDERAL RESERVE BANK OF NEW YORK AND OTHER AGENCIES THAT HELP TO
OVERSEE TRADING OF GOVERNMENT SECURITIES THE REGULATORS COULD USE THE DATA
FOR MARKET SURVEILLANCE BUT WOULD HAVE TO KEEP INFORMATION ABOUT SPECIFIC
FIRMS CONFIDENTIAL THE INITIATIVE EMBODIES AN AGREEMENT ENTERED INTO BY THE
GSCC AND THE NEW YORK FED

THE GSCC A CLEARING AGENCY REGISTERED WITH THE SEC OFFERS A CENTRALIZED
AUTOMATED SYSTEM FOR THE CLEARANCE AND SETTLEMENT OF TRADES IN TREASURY
SECURITIES

A REPORT ISSUED BY REGULATORS AFTER THE SALOMON BROTHERS INC TREASURY BOND
SCANDAL SAID THE SEC BELIEVES THAT A PARTIAL AUDIT TRAIL COULD BE
CONSTRUCTED BY COMBINING TRANSACTION INFORMATION FROM GSCC WITH AVAILABLE
PRICE AND VOLUME INFORMATION

THE PROPOSAL MUST BE APPROVED BY THE SEC BEFORE IT CAN TAKE EFFECT THE
AGENCY ASKED INTERESTED PARTIES TO COMMENT BY FEB 10 9401240084 940124
PRIDE AND PREJUDICE PEACE IS IN THE AIR BUT EQUALITY ISN'T SAY 
ISRAEL'S ARAB CITIZENS  MANY ALREADY LACK JOBS CLEAN WATER
ELECTRICITY AND EXPECT EVEN WORSE  WE WANT THE SAME RIGHTS' 
 BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL

JERUSALEM AFTER NEARLY 10 YEARS IN PARLIAMENT ABDUL WAHAB DARAWSHE FELT
THE MOMENT HAD ARRIVED FOR THE APPOINTMENT OF ISRAEL'S FIRST ARAB CABINET
MINISTER HE WANTED TO BE THAT PERSON

HIS TIMING SEEMED PROPITIOUS PRIME MINISTER YITZHAK RABIN HAD SAID HE
WANTED TO EXPAND HIS NARROWLY BASED RULING COALITION TO SHORE UP SUPPORT FOR
THE PEACE ACCORD WITH THE PALESTINE LIBERATION ORGANIZATION IF MR RABIN
WAS WILLING TO SHAKE HANDS WITH YASSER ARAFAT MR DARAWSHE REASONED WHY
SHOULDN'T HE BE READY TO ACCEPT ABDUL WAHAB DARAWSHE A LOYAL ISRAELI
CITIZEN INTO HIS GOVERNMENT

BUT MR RABIN HAS SO FAR REBUFFED THE OVERTURE EVEN THOUGH THE GOVERNMENT
DEPENDS HEAVILY ON ARAB PARTIES TO WIN KEY KNESSET VOTES MR DARAWSHE SAYS
HE IS TOLD THAT THE ISRAELI PUBLIC ISN'T READY TO ACCEPT ARABS AS
FULLFLEDGED PARTNERS MR DARAWSHE NOW DECLARES THAT IF HE ISN'T ACCEPTED
BY THE END OF JANUARY HIS DEMOCRATIC ARAB PARTY AND ITS TWO SEATS IN THE
120SEAT KNESSET WILL JOIN THE OPPOSITION

THE IDEA OF PEACE BETWEEN ISRAEL AND PALESTINIANS MAY BE IN THE AIR BUT
ISRAEL'S 800000 ARAB CITIZENS ALMOST ALL LIVING WITHIN ISRAEL PROPER
NOT IN THE OCCUPIED TERRITORIES STILL FEEL LIKE SECONDCLASS CITIZENS
SAYS MR DARAWSHE I'M NOT SURE THIS GOVERNMENT OR ANY OTHER GOVERNMENT
WILL EVER GIVE US REAL EQUALITY

ISRAEL'S ARAB CITIZENS WHO MAKE UP 16 OF THE ISRAELI POPULATION
OVERWHELMINGLY SAW THE ISRAELPLO AGREEMENT AS LEADING TO SWEEPING
IMPROVEMENTS IN THEIR LIVES THE JEWISH MAJORITY WOULD NO LONGER HAVE ANY
REASON TO DOUBT THEIR LOYALTY OR TO FEEL THREATENED BY THEIR IDENTIFICATION
WITH THE PLO DISCRIMINATION IN JOBS HOUSING AND EDUCATION WHICH HAVE
EXISTED SINCE ISRAEL'S FOUNDING IN 1948 SHOULD NO LONGER BE JUSTIFIED
ISRAELI ARAB LEADERS ARGUED

YET THE PROSPECT OF PEACE INSTEAD OF CLOSING ECONOMIC SOCIAL AND
EDUCATIONAL GAPS BETWEEN ISRAELI JEWS AND ARABS IS THREATENING TO WIDEN
THEM

ARAB TOWNS CONTINUE TO LAG SEVERELY IN ECONOMIC DEVELOPMENT AND HAVE HIGHER
UNEMPLOYMENT ACCORDING TO SIKKUY A JERUSALEMBASED ORGANIZATION PROMOTING
EQUAL OPPORTUNITY THE GOVERNMENT HASN'T INTEGRATED ARABS INTO THE CIVIL
SERVICE AND MANY GOVERNMENT OFFICES HAVE NO ARABS ON STAFF WHILE 31 OF
JEWISH STUDENTS WENT ON TO HIGHER EDUCATION IN 1992 ONLY 10 OF NONJEWISH
ISRAELI STUDENTS DID

NOW A SCRAMBLE BY ISRAELI JEWS TO GO INTO BUSINESS WITH PALESTINIANS IN THE
OCCUPIED WEST BANK AND GAZA STRIP IS STIRRING BITTERNESS AMONG ISRAELI
ARABS WHO HAVEN'T BEEN ABLE TO ATTRACT SIGNIFICANT INVESTMENT TO THEIR OWN
COMMUNITIES

TRUE EQUALITY WON'T BE POSSIBLE IN ANY CASE AS LONG AS OLD HOSTILITIES AND
PREJUDICES LINGER ON BOTH SIDES ATALIA DROR A LIBERAL ISRAELI JEW WHO
WORKS AT A SUBURBAN TEL AVIV NEWSPAPER SHOP SAYS SHE IS A STRONG BELIEVER
IN EQUALITY YET THE FEAR OF ARABS IS A FEELING THAT'S HARD TO ERASE IT
COMES FROM DEEP INSIDE MY BELLY SHE SAYS AFTER ALL THEY DID ATTACK US
AND TRY TO DESTROY US

AMONG ISRAELI ARABS THERE IS AMBIVALENCE ABOUT THEIR IDENTITY IN A COUNTRY
THAT DEFINES ITSELF FOREMOST AS A JEWISH STATE THEIR ALLEGIANCE TO ISRAEL
ALSO INFURIATES SOME PALESTINIANS IN THE OCCUPIED TERRITORIES THEY SAY
THEY WANT EQUALITY WITHIN ISRAEL THEY SAY THEY WANT DEMOCRACY BUT THEY'LL
NEVER GET IT SAYS GHASSAN KABHA A PALESTINIAN ACTIVIST IN BARTA'A A
BORDER TOWN THAT SPANS BOTH ISRAEL AND THE WEST BANK LOOK AT THE MIDDLE
EASTERN JEWS AND THE EUROPEAN JEWS WHO LIVE IN ISRAEL HE SAYS SEATED IN
HIS COUSIN'S STONE HOUSE ON THE WEST BANK SIDE OF TOWN THERE HASN'T BEEN
EQUALITY BETWEEN THEM SINCE THE STATE BEGAN AND IF THERE'S NO EQUALITY
BETWEEN THE JEWS WHY DO THE ARABS THINK THERE WILL EVER BE EQUALITY BETWEEN
THE ARABS AND THE JEWS

IN FACT EVEN BEFORE THE ISRAELPLO ACCORD SIGNIFICANT PROGRESS HAD BEEN
MADE IN CLOSING SOME GAPS BUDGETS EARMARKED FOR THE ARAB SECTOR HAVE MORE
THAN DOUBLED SINCE THE LABOR PARTY CAME TO POWER 18 MONTHS AGO THE FIRST
ISRAELI ARAB WAS NAMED TO HEAD A GOVERNMENTOWNED COMPANY AND THE
GOVERNMENT HAS PROMISED TO EQUALIZE CHILDCARE ALLOWANCES FOR ARAB AND
JEWISH FAMILIES

YET BECAUSE MARKED DIFFERENCES REMAIN ISRAELI ARABS FEAR THAT THE
GOVERNMENT DOESN'T INTEND TO GRANT THEM CIVIL EQUALITY THE PEACE ACCORD
CONTENDS ELIE REKHESS OF TEL AVIV UNIVERSITY IS RELEGATING ISRAELI ARABS
TO THE MARGINS OF BOTH THE PALESTINIAN MAINSTREAM AND ISRAELI SOCIETY

AND THEY WOULD BE HARDER HIT BY THE ECONOMIC RESTRUCTURING REQUIRED BY
PEACE ARGUE AMIRAM GONEN AND RASSEM KHAMAISI RESEARCHERS AT THE
FLOERSHEIMER INSTITUTE FOR POLICY STUDIES IN JERUSALEM FOREIGN INVESTMENT
IN ISRAEL FOLLOWING PEACE WOULD BE CONCENTRATED IN CAPITALINTENSIVE
INDUSTRIES IN METROPOLITAN AREAS THEY SAY BUT MOST ISRAELI ARABS LIVE IN
RURAL AREAS ON THE PERIPHERY OF THE COUNTRY AND ISRAELI JEWS MORE THAN
ISRAELI ARABS HAVE ACQUIRED THE SKILLS TO TAKE ADVANTAGE OF OPPORTUNITIES
EXPECTED IN AREAS LIKE TECHNOLOGY AND SCIENCE

LABORINTENSIVE INDUSTRIES THAT EMPLOY MANY ISRAELI ARABS ON THE OTHER
HAND WOULD FIND IT HARD TO COMPETE WITH CHEAPER PALESTINIAN LABOR ACROSS
THE BORDER AND SOME MAY END UP SHUTTING DOWN OR RELOCATING TO THE WEST
BANK WORSENING UNEMPLOYMENT SOME ARABS AND JEWS IN ISRAEL WILL BENEFIT
ECONOMICALLY BY PEACE BUT THE JEWS WILL BENEFIT MUCH MORE SAYS MR GONEN
SOME ARABS AND JEWS WILL BE HURT ECONOMICALLY BY PEACE BUT THE ARABS WILL
BE HURT MUCH MORE

FOR MUSTAFA ABU RAIA AN ISRAELI ARAB WHO IS A FORMER HEAD OF THE SAKHNIN
LOCAL COUNCIL IN THE GALILEE THE PEACE PROCESS HAS BROUGHT SOME WELCOME
CHANGES HE SAYS A COURT CASE AGAINST HIM FOR MAKING STATEMENTS SUPPORTING
THE PALESTINIAN INTIFADA WAS DROPPED BY THE ISRAELI AUTHORITIES AFTER THE
PLO PACT WAS SIGNED VILLAGERS HAVE BEEN ALLOWED TO CARRY PALESTINIAN FLAGS
DURING DEMONSTRATIONS SUPPORTING THE PEACE PROCESS

BUT HE WORRIES THAT PEACE AND THE EVENTUAL RELINQUISHING OF JEWISH
SETTLEMENTS IN THE WEST BANK AND GAZA WOULD CAUSE GOVERNMENT ATTENTION TO
TURN INSTEAD TO JUDAIZING THE GALILEE THE AREA IN NORTHERN ISRAEL WHERE
ISRAELI ARABS ARE MOST CONCENTRATED

DURING THE 1948 WAR SAKHNIN ELDERS MET WITH THE APPROACHING JEWISH ARMY AND
OFFERED TO TURN OVER THEIR ARMS AND REMAIN NEUTRAL IF JEWISH SOLDIERS WOULD
REFRAIN FROM ATTACKING THE VILLAGE A DEAL WAS STRUCK AND THE VILLAGERS SAT
OUT THE WAR AT HOME THE VILLAGE UNTOUCHED

BUT OVER THE YEARS THE GOVERNMENT BUILT NEW JEWISH TOWNS ON LAND THAT WAS
ONCE PART OF SAKHNIN OUTSIDE MR ABU RAIA'S HOME STANDS A MEMORIAL TO SIX
PEOPLE KILLED DURING A 1976 PROTEST AGAINST GOVERNMENT CONFISCATION OF ARAB
LAND THE MEMORIAL A BOXY SCULPTURE OF PEOPLE CROUCHING AND SHIELDING
THEMSELVES WITH THEIR ARMS IS A CONSTANT REMINDER OF THE IMPORTANCE
VILLAGERS ATTACH TO THE LAND AND OF THEIR FEARS OF LOSING IT

WE LOOK AT THE JEWISH TOWNS AROUND US THE GOVERNMENT OFFERS FINANCIAL
INDUCEMENTS TO ENCOURAGE JEWS TO MOVE THERE OR TO SET UP COMPANIES THEY
MAKE SURE THAT THE JEWISH TOWNS HAVE PHONES WATER SEWAGE AND ELECTRICITY
UNLIKE MANY OF THE ARAB VILLAGES IN THE GALILEE WE WANT THE SAME RIGHTS AND
BENEFITS THE JEWS RECEIVE SAYS MR ABU RAIA I DON'T MIND IF THEY WANT TO
PUT NEW IMMIGRANTS IN THE GALILEE BUT I WANT TO MAKE SURE THAT THERE IS
GOING TO BE ENOUGH LAND FOR US TO LIVE HERE 50 YEARS FROM NOW AS WELL

SAKHNIN RESIDENTS ARE ESPECIALLY WORRIED ABOUT A PROPOSAL BY THE JEWISH
AGENCY A NONPROFIT GROUP THAT WORKS CLOSELY WITH THE GOVERNMENT FOR 26
FUTURE JEWISH SETTLEMENTS IN THE GALILEE TO THEM IT CONFIRMS SUSPICIONS
THAT ONCE THE OCCUPIED TERRITORIES ARE RETURNED JEWISH SETTLEMENT IN
NORTHERN ISRAEL WILL EXPAND ONE DAY THERE WILL BE NO MORE ISRAELIS IN THE
OCCUPIED TERRITORIES THEY'LL LEAVE THEIR HOMES AND COME TO THE GALILEE
WORRIES HAMAD KHALAILY AN EXKNESSET MEMBER

BENNY SHILOH HEAD OF THE MINORITIES DESK AT THE PRIME MINISTER'S OFFICE
DISMISSES THIS NOTION AND HE SAYS THE GOVERNMENT IS TRYING TO CLOSE THE
EDUCATIONAL AND SOCIAL GAPS BETWEEN ARAB AND JEWISH COMMUNITIES ARABS HERE
ARE GOING TO BENEFIT FROM PEACE MR SHILOH CONTENDS

IF ISRAEL CAN SPEND LESS MONEY ON DEFENSE THERE WILL BE MORE MONEY TO
SPEND ON IMPROVING CITIES AND TOWNS AND THIS WILL INCLUDE ARAB TOWNS ON
EQUAL TERMS WITH JEWISH ONES HE ADDS WE ARE COMMITTED TO ENSURING THAT
ARABS WILL HAVE EQUAL JOB OPPORTUNITIES NOW AND WHEN THERE IS PEACE

AZMI BISHARA AN ISRAELI ARAB WHO HEADS THE PHILOSOPHY DEPARTMENT AT BIR
ZEIT UNIVERSITY IN THE WEST BANK SAYS ISRAELI ARABS ARE BEGINNING TO
REALIZE THAT EVEN IF A PALESTINIAN STATE EMERGES THEIR STATUS IN ISRAEL
WON'T CHANGE SO LONG AS ISRAEL CONTINUES TO DEFINE ITSELF AS A JEWISH STATE
HE BELIEVES TERRITORIAL AUTONOMY FOR ISRAELI ARABS IS OUT OF THE QUESTION
SINCE JEWS AND ARABS ARE GEOGRAPHICALLY INTERTWINED BUT ARABS SHOULD AT
LEAST HAVE CULTURAL AUTONOMY HE SAYS OVERSEEING THE BOOKS THEIR SCHOOLS
USE AND THE WAY ARAB HISTORY IS TAUGHT FOR EXAMPLE

WHY SHOULD A ROMANIAN JEW DECIDE WHAT ARABIC LITERATURE I STUDY IN SCHOOL
WHY SHOULD JEWS RUN THE ISRAELI ARABIC TELEVISION WHY SHOULDN'T THERE BE AN
ARAB UNIVERSITY IN NAZARETH OFFERING COURSES TAUGHT IN ARABIC MR BISHARA
ASKS

SUCH ARGUMENTS FRIGHTEN MANY ISRAELI JEWS WHO FEAR CULTURAL AUTONOMY WOULD
BE THE FIRST STEP TOWARD ISRAELI ARAB SECESSION AND DESTRUCTION OF ISRAEL
FROM WITHIN AT A TEL AVIV UNIVERSITY PANEL DISCUSSION ON PEACE'S EFFECTS
THE MOSTLY JEWISH AUDIENCE COULD BARELY CONTROL ITSELF WHEN AN ISRAELI ARAB
POSED THE IDEA ONE MAN STOOD UP AND DENOUNCED THE SPEAKER DRAWING HEARTY
APPLAUSE FROM OTHERS

MR DARAWSHE THE KNESSET MEMBER SAYS THAT WHILE ISRAELI ARABS DON'T SEEK
TERRITORIAL AUTONOMY THE NEW POLITICAL SITUATION HAS MADE ISRAEL SEEM EVEN
MORE MARKEDLY A JEWISHZIONIST STATE HE PLANS TO OFFERS A BILL TO EXPAND
ISRAEL'S DEFINITION CURRENTLY THE STATE OF THE JEWISH PEOPLE TO ADD
AND THE STATE OF ALL ITS CITIZENS REGARDLESS OF NATIONAL OR RELIGIOUS
AFFILIATION THE PROPOSAL IS A TEST HE SAYS FOR HOW SERIOUSLY ISRAEL
WANTS THE ARAB CITIZENS TO INTEGRATE 9401240083 940121 EARNINGS
SURPRISES

COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT
FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT
LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES

THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE
AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS
OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9401240082
940124 EASTERN EUROPEAN RETAILERS STILL WARY DESPITE SOME LOOSENING OF
PURSE STRINGS  BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL

BUDAPEST EASTERN EUROPEAN RETAILERS POSTED MODEST SALES INCREASES IN 1993
AS CONSUMERS SHRUGGED OFF RECESSIONARY WOES AND SPENT MONEY ON SUCH PRODUCTS
AS BEER CIGARETTES AND SOFT DRINKS

YET WITH THE REGION STILL FACING ECONOMIC AND SOCIAL CHANGE THE BUYING
BINGE ISN'T ENOUGH TO MAKE RETAILERS REJOICE IN HUNGARY POLAND CZECH
REPUBLIC AND SLOVAKIA

A SURVEY FOR THE WALL STREET JOURNAL EUROPE BY MARKET RESEARCH FIRM AC
NIELSEN FOUND THAT FOOD RETAILERS IN ALL FOUR COUNTRIES THE MOST
ECONOMICALLY ADVANCED IN THE FORMER EAST BLOC ENTERED 1994 WITH NAGGING
DOUBTS ABOUT THE PROSPECT OF SUSTAINED SALES GROWTH

HUNGARIAN AND POLISH RETAILERS WERE ALMOST EVENLY SPLIT BETWEEN THOSE WHO
PREDICT A DOWNTURN AND THOSE WHO FORESEE FLAT SALES ONLY ABOUT ONETHIRD
EXPECT SALES TO IMPROVE BUT IN CZECH REPUBLIC AND SLOVAKIA ONLY 14 OF THE
RETAILERS SURVEYED BELIEVE SALES WILL WORSEN THE REST ARE EQUALLY DIVIDED
BETWEEN OPTIMISM AND STAGNATION

THERE'S NO APPARENT BLOC MENTALITY WHEN RETAILERS IN EASTERN EUROPE ARE
ASKED WHY THEY ARE LESS THAN ENTHUSIATIC ABOUT SALES IN GENERAL THEY SAY
THE HARD TIMES CHARACTERISTIC OF TRANSITION ECONOMIES CONTRIBUTE TO THE
UNCERTAIN OUTLOOK BUT THE SURVEY SUGGESTS THE REASONS VARY FROM COUNTRY TO
COUNTRY

HUNGARIAN RETAILERS ARE MORE CONCERNED ABOUT THEIR COMPANY'S FINANCIAL
PROBLEMS THAN ARE THOSE IN OTHER COUNTRIES POLISH RETAILERS TELL POLLSTERS
THAT CUSTOMERS WITHOUT SUFFICIENT PURCHASING POWER ARE THEIR MAIN WORRY
FEWER HUNGARIAN AND CZECH RETAILERS REPORT HESITANT CONSUMERS ON THE
HORIZON HUNGARIANS ARE CONFIDENT THAT EVEN COSTCONSCIOUS SHOPPERS CAN BE
COAXED TO SPEND IF PRICES AND STORE LOCATIONS ARE RIGHT

THAT'S WHY MAJOR FOREIGN FOOD RETAILERS IN HUNGARY ARE RAPIDLY EXPANDING
INTO NOFRILLS DISCOUNT OUTLETS TO MEET THE NEEDS OF CUSTOMERS WHO ARE
QUICKLY LEARNING WHAT VALUEFORMONEY MEANS

SMALL AND MEDIUMSIZED HARD' DISCOUNT STORES ON THE EDGE OF TOWN WERE
MISSING FROM THE HUNGARIAN MARKET UNTIL WE CAME ALONG SAYS ISTVAN KAVAS
MANAGING DIRECTOR OF DUNA FUSZERT A WHOLESALERTURNEDRETAILER IN WHICH
BELGIUM'S DELHAIZE LE LION SA HAS A MAJORITY STAKE DUNA OPERATES 24 PROFI
SHOPS IN HUNGARY 18 OPENED IN 1993 ALONE HOPES TO HAVE BETWEEN 150 AND 200
OUTLETS BY THE END OF THE DECADE

AUSTRIA'S JULIUS MEINL WHICH SAW SALES RISE ABOUT 15 AT ITS 111 STORES IN
HUNGARY JUMPED INTO THE DISCOUNT TRADE LAST YEAR WITH FOUR STORES
GERMANY'S TENGELMANN IS ALSO PUSHING INTO THE MARKET WITH ITS DISCOUNT PLUS
CHAIN IN HUNGARY IN DIRECT COMPETITION WITH PROFI

IT'S EASY TO SEE WHY PROFI AND PLUS STORES ARE POPULAR THEY'RE NONONSENSE
OPERATIONS THAT OFFER A WIDE VARIETY OF PRODUCTS AT PRICES 10 TO 15 LOWER
THAN IN DOWNTOWN MEGASTORES ON A RECENT AFTERNOON THERE'S SHOPPING CART
GRIDLOCK IN A CLEAN BRIGHT PLUS OUTLET ON THE OUTSKIRTS OF BUDAPEST NEAR A
LARGE HOUSING PROJECT

I COME HERE BECAUSE I LIVE IN THE NEIGHBORHOOD IT'S CHEAP AND IT'S
FRIENDLY SAYS LAJOS DOMOKOS A 55YEAROLD TAXI DRIVER MAYBE RICH PEOPLE
WHO LIVE UP IN THE BUDA HILLS DON'T CHECK PRICE TAGS BUT I DO HE ADDS

SUCH SHOPS ARE A WORLD AWAY FROM HUNGARY'S OLD STATERUN CHAINS THAT ARE
ALMOST EXTINCT IN ONE DARK AND DINGY STATE SHOP IN DOWNTOWN BUDAPEST DUSTY
CANNED GOODS ARE DISPLAYED IN A DIRTY PLASTIC BASKET AND THE EDGES ON SLICED
MEATS ARE CURLING AN ELDERLY CUSTOMER IS ON HER KNEES TRYING TO EXTRICATE A
BOTTLE OF COCACOLA FROM A PACKING CRATE ON THE FLOOR NO EMPLOYEE BOTHERS
TO HELP HER

COMPARE THIS WITH MEINL'S STORES IN HUNGARY WITH THEIR WIDE AISLES MODERN
REFRIGERATED DISPLAYS AND MEAT AND CHEESE COUNTERS SOME EVEN HAVE SALAD
BARS

WE MAY NOT HAVE THE LOWEST PRICES BUT WE OFFER A GREAT ASSORTMENT OF
PRODUCTS SERVICE AND A FRIENDLY ATMOSPHERE WHICH CUSTOMERS REALLY
APPRECIATE SAYS KORNEL KISS MEINL'S GENERAL DIRECTOR FOR FINANCE SNOB
APPEAL DOES APPEAR TO BE PART OF THE MEINL IMAGE SAYS TIM KNOX A RETAIL
ANALYST AND DIRECTOR OF STRATEGIC CONSULTING GROUP IN BUDAPEST FOR MANY
PEOPLE A MEINL SHOPPING BAG IS CONSIDERED A STATUS SYMBOL

RETAILERS IN CZECH REPUBLIC ARE ALSO STARTING TO TREAT CUSTOMERS LIKE KINGS
STORES HAVE BEEN CLEANED UP THEY STAY OPEN LATER AND ON WEEKENDS AND THEY
TRY TO DRAW SHOPPERS WITH PROMOTIONS SUCH AS COUPONS SENT THROUGH THE MAIL

THE KRONE DEPARTMENT STORE ON PRAGUE'S WENCESLAS SQUARE IS TYPICAL OF THE
TREND TOWARD SERVICE AND VARIETY I BUY FOOD HERE EVEN IF IT'S MORE
EXPENSIVE BECAUSE I LIKE TO TRY NEW THINGS SAYS 69YEAROLD ESTER
MUDRANINCOVA I'M HAPPY WHEN I COME HERE I FEEL LIKE I'M IN PARADISE

SUCH WESTERNSTYLE JOYOFSHOPPING EXPERIENCES HAVEN'T REALLY TAKEN HOLD IN
POLAND YET SMALL MOMANDPOP SHOPS AND STREET KIOSKS AS WELL AS BUSTLING
FARMERS' MARKETS ARE WHERE MOST POLES BUY FOOD THERE ARE SOME SELFSERVICE
SHOPS BUT MANY PRIVATIZED GROCERY STORES ARE STILL RUN BY SURLY
SHOPKEEPERS

THE RETAIL EXPANSION SEEN IN HUNGARY IS HAMPERED IN POLAND BY A LACK OF
AVAILABLE SPACE HOWEVER THIS HASN'T STOPPED CHAINS LIKE NORWAY'S REMA
1000 WHICH HAS A BIG MODERN STORE UNDER WARSAW'S CENTRAL STATION FROM
TAKING THE PLUNGE REMA 1000 CAN BE MORE EXPENSIVE ON SOME PRODUCTS BUT
SHOPPERS ARE ENTHUSIASTIC ESPECIALLY WHEN FREE SAMPLES ARE HANDED OUT

BUT IN GENERAL POLISH RETAILERS REMAIN SCEPTICAL ABOUT CONSUMER CONFIDENCE
AND AREN'T RUSHING INTO COSTLY RENOVATIONS ONLY 17 OF POLISH RETAILERS
SURVEYED SAY THEY'LL INVEST IN IMPROVEMENTS COMPARED WITH 42 IN CZECH
REPUBLIC AND SLOVAKIA 9401240081 940124 CATERPILLAR NET FOR 4TH QUARTER
 TOPPED ESTIMATES  BY ROBERT L ROSE STAFF REPORTER OF THE WALL
STREET JOURNAL

CATERPILLAR INC'S RECOVERY ACCELERATED AS BRISK SALES OF CONSTRUCTION
EQUIPMENT IN THE US LED TO STRONGERTHANEXPECTED SALES AND EARNINGS IN
THE FOURTH QUARTER

THE REPORT BOLSTERED THE CONTENTION BY SOME MONEY MANAGERS AND ANALYSTS THAT
CATERPILLAR OF PEORIA ILL HAS BEGUN WHAT COULD BE A LONG PERIOD OF
IMPROVING RESULTS THAT VIEW HAS HELPED SEND CATERPILLAR SHARES TO NEW HIGHS
IN RECENT MONTHS AFTER YEARS OF UNDERPERFORMING THE OVERALL MARKET

BUT FRIDAY'S REPORT WAS EVEN BETTER THAN THE OPTIMISTS EXPECTED IT CAUSED
ANALYSTS TO BOOST THEIR PROFIT FORECASTS AND THE STOCK TO SURGE TO YET
ANOTHER HIGH CATERPILLAR SHARES CLOSED AT 98625 UP 4625 OR 5 IN NEW
YORK STOCK EXCHANGE COMPOSITE TRADING PROVIDING A BOOST TO THE DOW JONES
INDUSTRIAL AVERAGE

CATERPILLAR WHICH IS ALSO SEEING INCREASED DEMAND FOR ITS BIG DIESEL
ENGINES SAID IT EARNED 119 MILLION OR 117 A SHARE FOR THE QUARTER
THAT INCLUDED A 29 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT BEFORE THE
CHARGE THE COMPANY EARNED 148 MILLION OR 146 A SHARE FOR THE LATEST
QUARTER

THAT'S WELL ABOVE SECURITIES ANALYSTS' ESTIMATES WHICH WERE A MEAN OF 86
CENTS A SHARE ACCORDING TO FIRST CALL A UNIT OF THOMSON FINANCIAL
SERVICES IN THE YEAREARLIER QUARTER CATERPILLAR HAD A LOSS OF 2 MILLION
OR TWO CENTS A SHARE

JOHN MCGINTY OF CS FIRST BOSTON SAID THE REPORT SHOWS THAT CATERPILLAR IS
INCREDIBLY PROFITABLE AND IF THEY GET TOPLINE SALES GROWTH EARNINGS WILL
COME TUMBLING ON DOWN TO THE BOTTOM LINE

THE SALES PERFORMANCE WAS AS SURPRISING AS THE EARNINGS TURNAROUND BOOSTED
BY THE REBOUNDING US BUSINESS AND PRICE INCREASES SALES JUMPED 16 TO
307 BILLION FROM 264 BILLION A YEAR EARLIER MANY ANALYSTS HAD EXPECTED
A SINGLEDIGIT INCREASE IN SALES

FOR 1993 CATERPILLAR EARNED 652 MILLION OR 643 A SHARE INCLUDING A
GAIN OF 300 MILLION FROM A SETTLEMENT WITH THE INTERNAL REVENUE SERVICE A
YEAR EARLIER THE COMPANY HAD A LOSS OF 244 BILLION OR 2412 A SHARE
INCLUDING A CHARGE OF 222 BILLION FOR NEW ACCOUNTING STANDARDS SALES ROSE
14 TO 1124 BILLION FROM 984 BILLION

BARRY BANNISTER AN ANALYST AT SG WARBURG SAID HE'LL PROBABLY INCREASE
HIS RECENT ESTIMATES THAT CATERPILLAR WOULD EARN 494 A SHARE IN 1994 AND
802 A SHARE IN 1995 I BELIEVE THE OUTLOOK FOR SUSTAINED EARNINGS GROWTH
FOR SEVERAL YEARS IS IN PLACE HE SAID

EVEN AS THEY PRAISE CATERPILLAR FOR ITS STRONG COSTCUTTING AND EFFICIENCY
MOVES IN RECENT YEARS SOME ANALYSTS REMAIN CONCERNED ABOUT THE LACK OF A
LABOR CONTRACT WITH THE UNITED AUTO WORKERS WHICH REPRESENTS MOST OF THE
COMPANY'S US PRODUCTION EMPLOYEES

WHILE THEY QUESTION THE UAW'S CONTENTION THAT ITS SOCALLED WORKTORULE
CAMPAIGN HAS AFFECTED PRODUCTION ANALYSTS WORRY ABOUT ANOTHER STRIKE IN
NOVEMBER A THREEDAY WALKOUT WAS CALLED IN PROTEST OF THE COMPANY'S
SUSPENSION OF A UNION OFFICER AT CATERPILLAR'S ENGINE PLANT IN MOSSVILLE
ILL

AS THE COMPANY RELEASED ITS RESULTS UAW SECRETARYTREASURER BILL CASSTEVENS
WAS TOURING UNION HALLS TO RALLY MEMBERS WHO WORK AT THE COMPANY'S PLANTS IN
ILLINOIS AND PENNSYLVANIA IMAGINE HOW MUCH BETTER CAT COULD DO IF THEY
WERE NOT AT WAR WITH THEIR OWN WORKERS MR CASSTEVENS SAID IN A STATEMENT
9401240080 940124 TECHNOLOGY & MEDICINE COPLEY DRUG LINKED TO HEALTH
PROBLEMS IN 2 LAWSUITS AND COMPLAINTS TO FDA  BY TOM KNUDSON 
STAFF REPORTER OF THE WALL STREET JOURNAL

COPLEY PHARMACEUTICAL INC'S ONCEPOPULAR ASTHMA MEDICATION ALBUTEROL HAS
BEEN LINKED TO HEALTH PROBLEMS IN LAWSUITS AND COMPLAINTS TO THE FOOD AND
DRUG ADMINISTRATION

AS PREVIOUSLY REPORTED COPLEY RECALLED ALBUTEROL EARLIER THIS MONTH AFTER
DISCOVERING SAMPLES CONTAMINATED WITH BACTERIA AT THE TIME THE COMPANY
SAID IT WAS UNAWARE OF ANY REPORTS LINKING THE DRUG TO ILLNESS THE COMPANY
A MAJOR GENERICDRUG MAKER CONTINUES TO MAINTAIN THAT IT KNOWS OF NO
CONFIRMED CASES OF HEALTH PROBLEMS CAUSED BY THE DRUG BUT THE COMPANY NOW
FACES TWO SEPARATE LAWSUITS FILED IN STATE COURT IN CHICAGO ALLEGING THAT A
17MONTHOLD BOY AND A 10MONTHOLD GIRL CONTRACTED LIFETHREATENING
PNEUMONIA AFTER TAKING THE DRUG THE FDA ALSO SAYS IT HAS RECEIVED
COMPLAINTS ABOUT ALBUTEROL INCLUDING SOME ALLEGING A LINK BETWEEN THE
PRODUCT AND HEALTH PROBLEMS

THE RECALL AND COPLEY'S HANDLING OF IT HAS ALSO LED SOME TO QUESTION
WHETHER GENERICDRUG MAKERS WHO SEEK TO KEEP COSTS AND PRICES LOW ARE AS
RELIABLE OR RESPONSIVE AS MAJOR PHARMACEUTICAL COMPANIES

DR JOHN STRIMAS A NASHVILLE TENN ASTHMA SPECIALIST AND PEDIATRICIAN
SAID THE RECALL CASTS A BROAD CLOUD OVER GENERIC DRUGS AND THAT HE WILL
NO LONGER PRESCRIBE COPLEY'S ALBUTEROL

I HAVE PUT A LOT OF FAITH IN GENERICS BUT I'M AFRAID THIS WILL HAVE A BAD
IMPRESSION ON A LOT OF US WHO HAVE TRUSTED GENERICS SAID DR STRIMAS A
MEMBER OF THE BOARD OF REGENTS OF THE AMERICAN COLLEGE OF ALLERGY AND
IMMUNOLOGY

NANCY SANDER PRESIDENT OF ALLERGY AND ASTHMA NETWORK/MOTHERS OF ASTHMATICS
A CONSUMERHEALTH ORGANIZATION IN FAIRFAX VA CONTENDED THAT COPLEY WASN'T
AS PREPARED TO DEAL WITH A RECALL AS A NAMEBRAND DRUG COMPANY WOULD HAVE
BEEN WE RECEIVED HUNDREDS OF CALLS ABOUT THIS SHE SAID PEOPLE WERE
ANGRY THEY FOUND IT DIFFICULT TO GET THROUGH TO COPLEY AND WHEN THEY DID
GET THROUGH THEY FELT THEY WERE TREATED RUDELY AND THEIR QUESTIONS WEREN'T
ANSWERED

JANET TOBIAS A SAINT JOSEPH MICH HOUSEWIFE WHOSE SEVENYEAROLD SON HAS
ASTHMA AND WAS USING COPLEY'S ALBUTEROL SAID I TRIED FOR FOUR DAYS TO GET
THROUGH TO COPLEY AND COULDN'T THE LINE WAS ALWAYS BUSY

THE COMPANY BASED IN CANTON MASS SAYS IT HAS TRIED TO ACCOMMODATE
CONCERNED ALBUTEROL USERS WITH AS MANY AS 15 PHONE LINES AT A TIME DEVOTED
TO THE RECALL IT DENIES THAT ITS STAFF HAS BEEN RUDE TO CALLERS

WE HAVE NOT BEEN THROUGH A RECALL BEFORE IT'S A CHALLENGING SITUATION
SAID STEVEN TANNENBAUM COPLEY'S CHIEF FINANCIAL OFFICER YOU'RE GOING TO
HAVE A LOT OF PUBLIC REACTION BUT I DON'T GET THE SENSE THIS WASN'T HANDLED
PROPERLY OR THAT THE SITUATION IS OUT OF CONTROL IT'S TOTALLY IN CONTROL

COPLEY WHICH IS 51 OWNED BY THE HOECHST CELANESE CORP UNIT OF GERMANY'S
HOECHST AG ANNOUNCED THE RECALL ON JAN 6 AFTER IT DISCOVERED THE BACTERIA
PSEUDOMONAS FLUORESCENS IN SOME 20MILLILITER VIALS OF ALBUTEROL SULFATE
INHALATION SOLUTION WITH A 05 CONCENTRATION THE BACTERIA CAN CAUSE
SERIOUS INFECTIONS PARTICULARLY IN PEOPLE WITH CYSTIC FIBROSIS CHRONIC
OBSTRUCTIVE LUNG DISEASE OR COMPROMISED IMMUNE SYSTEMS

ALBUTEROL 05 IS AN INHALATION SOLUTION USED TO TREAT A VARIETY OF
BREATHING DISORDERS THE DRUG IS SOLD UNDER COPLEY'S NAME AND THE PRIVATE
LABELS ALIGEN ASTRA GENEVA GOLDINE HARBOR MAJOR MOORE HL MOORE
QUALITEST RUGBY AND SCHEIN COPLEY'S ALBUTEROL SULFATE 0083 SOLUTION
WASN'T AFFECTED BY THE RECALL

THERE'S BEEN A LOT OF CONSUMER RESPONSE AND A LOT OF PEOPLE CLAIMING THINGS
BUT CERTAINLY NOTHING THAT'S BEEN CONFIRMED MR TANNENBAUM SAID BUT THE
LAWSUITS IN CHICAGO WHICH SEEK UNSPECIFIED DAMAGES ALLEGE OTHERWISE THE
SUITS WERE FILED IN THE CIRCUIT COURT OF COOK COUNTY

BRIAN MURPHY A LAWYER REPRESENTING THE FAMILIES OF THE CHILDREN SAID THE
INFECTIONS THAT WERE CAUSING THE PNEUMONIAS MATCHED THE CONTAMINANTS THAT
WERE FOUND IN THE COPLEY PRODUCT NAMELY PSEUDOMONAS

THE TWO CHILDREN FROM SEPARATE FAMILIES WERE BOTH IN VERY BAD SHAPE AND
CONTINUE TO BE SO MR MURPHY SAID FRIDAY HE ASKED THAT THEIR NAMES NOT BE
DISCLOSED COPLEY'S MR TANNENBAUM SAID HE COULDN'T COMMENT ON THE
LITIGATION

THE FDA WHICH SAYS IT RECEIVED A NUMBER OF ALBUTEROL COMPLAINTS IS
EVALUATING ANY INFORMATION THAT COMES IN TO SEE IF WE HAVE A
CAUSEANDEFFECT COMPLAINT SAID RICHARD SWANSON DIRECTOR OF EMERGENCY AND
EPIDEMIOLOGICAL OPERATIONS FOR THE AGENCY AT THIS PARTICULAR MOMENT WE
KNOW OF NO CONTAMINATED PRODUCT THAT GOT OUT OF THE CONTROL OF THE
MANUFACTURER HE ADDED THAT THE FDA DIDN'T RECEIVE ANY COMPLAINTS UNTIL
AFTER THE RECALL WAS ANNOUNCED

BUT DR STRIMAS THE NASHVILLE ASTHMA SPECIALIST NOTED THAT BEFORE THE
RECALL WE WEREN'T LOOKING FOR IT WE KNOW 5000 PEOPLE DIE FROM ASTHMA A
YEAR AND WE HAVE NOT BEEN LOOKING FOR THIS WHEN MY PATIENTS COME IN
COUGHING AND WHEEZING I'LL BE MORE CAREFUL

PSEUDOMONAS SCARES ME HE SAYS WOULD YOU LIKE TO BREATHE IT I WOULDN'T
DO IT FOR A MILLION DOLLARS I WOULD RATHER WALK PAST A RATTLESNAKE THAN
BREATHE A VIAL OF THAT STUFF 9401240079 940124 WHAT'S NEWS  BUSINESS
AND FINANCE

QVC NETWORK IS UNDER INCREASED PRESSURE TO IMPROVE ITS BID FOR PARAMOUNT
FOLLOWING THE PARAMOUNT BOARD'S ENDORSEMENT OF THE LATEST 98 BILLION
TAKEOVER BID BY VIACOM LAZARD FRERES ADVISED THE DIRECTORS THAT THE VIACOM
BID WAS MARGINALLY SUPERIOR EVEN THOUGH ITS MARKET VALUE IS CURRENTLY
LOWER THAN THE QVC OFFER VALUED AT ABOUT 102 BILLION

TOKYO STOCKS PLUNGED 43 DURING MONDAY MORNING'S SESSION HURT BY THE
UNEXPECTED REJECTION IN PARLIAMENT FRIDAY OF LEGISLATION TO REFORM THE
POLITICAL SYSTEM IN JAPAN

CITICORP IS NEGOTIATING WITH THE US TO END THE STRICT REGULATORY
SUPERVISION IMPOSED IN FEBRUARY 1992 AS THE BANK WAS STRUGGLING TO RECOVER
FROM BILLIONS OF DOLLARS OF BAD LOANS

IBM IS EXPECTED TO REPORT ITS FIRST QUARTERLY PROFIT IN OVER A YEAR BUT
SOME ANALYSTS SAID IT IS TOO SOON TO CONCLUDE THAT A TURNAROUND IS AT HAND

A FEDERAL JUDGE APPROVED PRUDENTIAL SECURITIES' 907 MILLION SETTLEMENT OF
A CLASSACTION SUIT THAT ACCUSED THE BROKERAGE FIRM OF MISLEADING ENERGY
LIMITEDPARTNERSHIP INVESTORS

GM TEMPORARILY HALTED PRODUCTION OF REDESIGNED 1994 S10 PICKUP TRUCKS AND
THEN RECALLED ALL 120000 OF THE TRUCKS BUILT SO FAR TO FIX DEFECTIVE FUEL
TANKS THAT PUT THE VEHICLES OUT OF COMPLIANCE WITH US SAFETY STANDARDS

TRADE NEGOTIATORS ENDED SIX DAYS OF TALKS WITH A PROPOSAL BUT STILL NO
ACCORD TO CUT GLOBAL ALUMINUM OUTPUT DELAYING HOPES FOR A QUICK TURNAROUND
IN THE SEVERELY DEPRESSED INDUSTRY

THE DOW JONES INDUSTRIAL AVERAGE SURGED 2252 TO 391448 CLOSING ABOVE THE
3900 LEVEL FOR THE FIRST TIME

NORTHWEST AIRLINES AND KLM ROYAL DUTCH AIRLINES CUT CERTAIN OVERSEAS FARES
AS MUCH AS 30 AND OTHER BIG CARRIERS INDICATED THEY WOULD FOLLOW

BELL ATLANTIC REQUESTED PERMISSION FROM THE JUSTICE DEPARTMENT TO PROVIDE
LONGDISTANCE SERVICES AS PART OF ITS PROPOSED ACQUISITION OF TCI

PUBLISHER ZIFFDAVIS PLANS TO UNVEIL AN ONLINE INFORMATION SERVICE TARGETED
TOWARD AVID COMPUTER USERS

USX REPORTED A 37 MILLION PROFIT FOR THE FOURTHQUARTER COMPARED WITH A
YEARAGO LOSS LED BY ITS STEEL UNIT

WESTINGHOUSE POSTED A NARROWER FOURTHQUARTER LOSS ALTHOUGH MANY OF ITS
UNITS REPORTED WEAK RESULTS

POLICY MANAGEMENT SYSTEMS ACKNOWLEDGED THAT IT RECOGNIZED SOME REVENUE FROM
LICENSING PACTS BEFORE THEY WERE FORMALLY SIGNED BUT DENIED MISREPRESENTING
ITS FINANCIAL HEALTH IN AN EFFORT TO DECEIVE INVESTORS

CAPITAL CITIES/ABC IS EXPECTED TO ANNOUNCE THAT IT ACQUIRED A STAKE IN ALPHA
SOFTWARE IN EXCHANGE FOR RUNNING ALPHA ADS ON ITS MEDIA NETWORK

PARAMOUNT'S PUBLISHING UNIT PLANS TO SHARPLY CUT THE NUMBER OF BOOKS
PRODUCED UNDER THE MACMILLAN NAME

CONTINENTAL AIRLINES PLANS TO REDUCE FLIGHTS AT ITS DENVER HUB BY 23
ANOTHER STEP IN WHAT APPEARS TO BE A COMPANYWIDE ROUTE RESTRUCTURING

BONDS LEHMAN BROTHERS TREASURY INDEX 560781 OFF 281

COMMODITIES OIL 1494 A BARREL OFF 2 CENTS DOW JONES FUTURES INDEX
14210 OFF 068 SPOT INDEX 12940 OFF 046 9401240078 940124 SPLITTING
EXSOVIET REPUBLICS' CURRENCIES FROM RUBLE IS BEST WAY TO LURE CAPITAL 
 BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON ECONOMIC DOCTORS USED TO SNEER AT THE KROONS SOMS LATS AND
OTHER ODDLY NAMED CURRENCIES THAT SPROUTED UP IN THE INDEPENDENT REPUBLICS
OF THE FORMER SOVIET UNION

NO MORE

WITH THE RUSSIAN RUBLE TUMBLING TO NEW LOWS AND MOSCOW'S MOST PROMINENT
REFORMERS BAILING OUT IN DISGUST INTERNATIONAL INSTITUTIONS AND OTHERS
HAVE BEGUN TO LOOK WITH FAVOR ON THE NEWLY MINTED MONIES IN SUCH STATES AS
LATVIA KAZAKHSTAN AND THE KYRGYZ REPUBLIC

THE INTERNATIONAL MONETARY FUND GOT IT WRONG AND RUSSIA GOT IT WRONG IN THE
EARLY DAYS WHEN THEY WERE TRYING TO MAINTAIN THE INTEGRITY OF THE RUBLE
AREA SAYS DAVID DYKER A SENIOR FELLOW AT THE ROYAL INSTITUTE FOR
INTERNATIONAL AFFAIRS IN LONDON THESE DAYS DIVORCING THE RUBLE IS VIEWED
AS A STEP TOWARD ESCAPING THE CHAOS SAYS ONE WASHINGTONBASED ADVISER TO
THE REPUBLICS

SO THE IMF AND WORLD BANK NOW ARE SENDING SUPPORTIVE SIGNALS TO THE
INDEPENDENT CURRENCIES EARLIER THIS MONTH INTERNATIONAL DONORS AGREED TO A
1 BILLION PACKAGE OF AID AND CONCESSIONAL LOANS FOR KAZAKHSTAN ABOUT FIVE
TIMES THE AMOUNT COMMITTED THE PREVIOUS YEAR THE WORLD BANK IS PUTTING UP
ABOUT 40 OF THE PACKAGE WITH THE JAPANESE GOVERNMENT PROVIDING ABOUT 20

IN PART THE MONEY IS AIMED AT SUPPORTING THE TENGE THE CURRENCY THAT
KAZAKHSTAN ROLLED OUT LAST NOVEMBER ONE BANKER REASONS THAT IF NEW
CURRENCIES SUCH AS THE TENGE CAN BE STABILIZED AS SOME OF THEM HAVE BEEN
 THERE'LL BE MORE INVESTOR AND DONOR INTEREST IN THE OUTLYING REPUBLICS
THAN IN RUSSIA

BY THE SAME TOKEN THERE'S GROWING WORRY ABOUT BELARUS WHICH RECENTLY
AGREED TO JOIN A MONETARY UNION WITH RUSSIA ENDING A TIMID EXPERIMENT IN
MONETARY INDEPENDENCE AND RETIRING THE MEEKLY NAMED RUBEL WHICH IS NEARLY
IDENTICAL TO THE RUSSIAN CURRENCY BUT PRONOUNCED WITH THE ACCENT ON THE
SECOND SYLLABLE

THE SENSE OF HOPE THAT SURROUNDS SOME OF THE REPUBLICS' NEW CURRENCIES GOES
ALONG WITH THE HOPELESSNESS DIRECTED TOWARD THE RUBLE WHICH IS AGAIN
VULNERABLE TO INFLATION AFTER SEVERAL MONTHS OF REAL PROGRESS TOWARD
STABILITY LAST YEAR THE RUBLE ZONE FLOPPED EVEN FOR RUSSIA MAKING IT
HARDER FOR MOSCOW TO KEEP TABS ON THE MONEY SUPPLY AND CONTROL INFLATION
CURRENTLY REFORMERS IN MOSCOW STRENUOUSLY OPPOSE ANY EFFORTS TO REBUILD
ONE

WITH RUSSIA MANAGING ONE OF THE WOBBLIER REFORM PROGRAMS THE REFORMMINDED
STATES WOULD BE HELD BACK IF THEY WERE YOKED TO THE MONETARY MAYHEM AT THE
RUSSIAN CENTRAL BANK FOR DIFFERING PERIODS LAST YEAR THE ESTONIAN KROON
AND THE LATVIAN LAT WERE AMONG THE WORLD'S MORE STABLE CURRENCIES HAD THESE
BALTIC COUNTRIES BEEN SADDLED WITH RUBLES DURING THIS PERIOD THEIR PROGRESS
TOWARD ECONOMIC REFORM UNDOUBTEDLY WOULD HAVE BEEN SLOWED

ONE EXCEPTION AMONG THE STRONG NEW CURRENCIES OF THE FORMER SOVIET REPUBLICS
IS UKRAINE'S KARBOVANET WHICH ENJOYS THE DUBIOUS DISTINCTION OF
DETERIORATING FASTER THAN THE RUBLE THE KIEV GOVERNMENT WITH ONLY A
NOMINAL COMMITMENT TO ECONOMIC REFORM LAUNCHED A NEW CURRENCY IN THE SAME
SPIRIT AS HOISTING AN INDEPENDENT FLAG BUT SINCE THE CURRENCY WASN'T BACKED
BY A CREDIBLE ECONOMIC POLICY THE NEW MONEY BECAME HIGHLY INFLATIONARY AND
FOREIGN INVESTORS HAVE STEERED CLEAR

OF COURSE THE FLEDGLING CURRENCIES NEED MORE THAN COHERENT ECONOMIC REFORMS
AT HOME TO REMAIN STABLE HOWEVER STEADFAST THE FORMER SOVIET REPUBLICS ARE
NEARLY ALL OF THEM CAN EXPECT HEFTY TRADE DEFICITS WITH RUSSIA THE REGION'S
MAIN SUPPLIER OF ENERGY AND NATURAL RESOURCES THEY ALSO FACE PERILOUS
BUDGET DEFICITS THE INTERNATIONAL LENDING INSTITUTIONS WILL HAVE TO PROVIDE
THEM SUBSTANTIAL FINANCIAL SUPPORT OTHERWISE THEY WILL BE TEMPTED TO COPE
WITH THESE PROBLEMS BY PRINTING MONEY WHICH WOULD ERODE THEIR NEW
CURRENCIES

SOME OF THE REPUBLICS ARE BETTER POSITIONED TO SUPPORT THEIR CURRENCIES THAN
OTHERS THE BALTICS KEPT GOLD RESERVES IN PARIS LONDON BASEL AND STOCKHOLM
FROM THEIR DAYS OF INDEPENDENCE BEFORE WORLD WAR II WHEN THEY BROKE OFF
FROM THE SOVIET UNION THREE YEARS AGO THEY GOT THE GOLD BACK A FACTOR THAT
HELPS BOLSTER THEIR CURRENCIES NOW KAZAKHSTAN FOR ITS PART HAS VAST OIL
RESERVES

MORE THAN ECONOMICS IS AT STAKE IN THE CREDIBILITY OF THE NEW CURRENCIES IF
THE NEW CURRENCIES TURN HYPERINFLATIONARY GOVERNMENTS MAY THROW UP THEIR
HANDS AND SLIDE BACK INTO A RECREATED RUBLE ZONE PHILIP HANSON OF THE
CENTRE FOR RUSSIAN AND EAST EUROPEAN STUDIES AT ENGLAND'S BIRMINGHAM
UNIVERSITY WARNS THAT THERE'S AN ELEMENT OF NEOIMPERIALIST DRIVE IN
MOSCOW'S PUSH TO INCORPORATE BELARUS AND POSSIBLY OTHERS INTO ITS MONETARY
EMBRACE

THAT COULD BE AN ECONOMIC AND POLITICAL DISASTER SAYS MR DYKER IF IT'S
FEASIBLE FOR NONRUSSIAN REPUBLICS TO STABILIZE THEIR ECONOMIES THEY'RE FAR
BETTER OFF OUTSIDE THE RUBLE ZONE THE CHIPS ARE DOWN NOW 9401240077
940124 TECHNOLOGY & MEDICINE ZIFFDAVIS PLANS TO OFFER ONLINE DATA 
WITH SERVICE FOR AVID COMPUTER USERS  BY JARED SANDBERG STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK ZIFF COMMUNICATIONS CO'S COMPUTERPUBLISHING UNIT ZIFFDAVIS
PUBLISHING CO PLANS TO INTRODUCE AN ONLINE INFORMATION SERVICE TARGETED
TOWARD AVID COMPUTER USERS

THE LATEST ENTRY INTO THE CROWDED INFORMATION MARKETPLACE CARRYING THE
WORKING NAME INTERCHANGE ONLINE NETWORK IS EXPECTED TO BE ANNOUNCED TODAY
IT WILL OFFER THE USUAL ONLINE FARE ELECTRONIC MAIL DISCUSSION GROUPS
GAMES AND ACCESS TO NEWS AND PERIODICALS BUT IT ALSO WILL PROVIDE
SPECIALIZED ARTICLES GLEANED FROM ZIFF'S COMPUTERORIENTED MAGAZINES
INCLUDING PC MAGAZINE AND MACUSER AS WELL AS FROM OTHER SPECIALINTEREST
PUBLISHERS WITH WHICH ZIFF EXPECTS TO COLLABORATE

THIS IS THE REINVENTION OF A MARKET FROM A BROADCAST MEDIUM TO NETWORKS OF
TIGHTLY AFFILIATED SPECIALINTEREST SERVICES SAID MICHAEL KOLOWICH WHO
HEADS ZIFF DAVIS INTERACTIVE THE CAMBRIDGE MASS UNIT THAT WILL RUN THE
NEW SERVICE THE UNIT ALSO OPERATES ZIFFNET ANOTHER ONLINE SERVICE THAT
OFFERS ZIFF'S PUBLICATIONS AS PLAIN TEXT

BY CONTRAST THE NEW INTERCHANGE NETWORK INCLUDES MUCH MORE VISUALLY
ORIENTED MATERIAL THAT USES PLAQUES AND BUTTONS IT WILL PROVIDE
CONSIDERABLE VERSATILITY PERMITTING USERS FOR INSTANCE TO LOCATE SIMILAR
ARTICLES AND INFORMATION FROM A WIDE VARIETY OF SOURCES AND DATABASES AND
TO CALL THEM UP IN A PACKAGE OR USERS CAN SUBSCRIBE TO PARTICULAR
FEATURES FROM THE VARIOUS MAGAZINES AND VIEW THEM LATER WITHOUT INCURRING
ADDITIONAL HOURLY ONLINE CHARGES

MOREOVER THE PACKAGE WILL BE ABLE TO PERFORM SEVERAL TASKS AT ONCE WHILE
ORGANIZING INFORMATION GRAPHICALLY THE BIG TRANSITION HERE IS FROM THE
ONLINE WORLD AS A TEXT DATABASE TO THE ONLINE WORLD AS RICH COLLECTIONS OF
MULTIMEDIA DOCUMENTS SAID MR KOLOWICH CURRENTLY MANY POPULAR ONLINE
SERVICES CAN PERFORM ONLY ONE FUNCTION AT A TIME

INTERCHANGE IS THE LATEST ENTRY IN AN INCREASINGLY CROWDED MARKETPLACE
ZIFF'S ARCHRIVAL COMPUTER PUBLISHER INTERNATIONAL DATA GROUP PLANS TO ROLL
OUT ITS OWN COMPUTERSPECIALIZED ONLINE SERVICE THIS SUMMER PRODIGY
SERVICES CO A PARTNERSHIP BETWEEN INTERNATIONAL BUSINESS MACHINES CORP
AND SEARS ROEBUCK & CO CLAIMS TWO MILLION MEMBERS WHILE H&R BLOCK CO'S
COMPUSERVICE INFORMATION SERVICES INC THE OLDEST ONLINE SERVICE REPORTS
ALMOST 17 MILLION MEMBERS AND AMERICA ONLINE INC SAYS IT RECENTLY
SURPASSED 550000 SUBSCRIBERS MORE THAN DOUBLING ITS BASE DURING THE PAST
YEAR

MR KOLOWICH SAID ZIFF PLANS TO SPEND TENS OF MILLIONS OF DOLLARS IN
STARTING UP THE NEW VENTURE AND AIMS TO TEST IT WITH 30000 USERS
INITIALLY STARTING IN FEBRUARY HE SAID IT WILL BE PRICED AT 10 TO 15 A
MONTH WITH HOURLY USAGE FEES LOWER THAN ZIFFNET'S 1280ANHOUR CHARGE FOR
SLOWER ACCESS SPEEDS HE DECLINED TO DISCUSS THE COMPANY'S SUBSCRIBER TARGET
FOR THE NEW SERVICE THOUGH ANALYSTS SAY THEY WOULD EXPECT THE FIGURE TO
REACH AROUND 200000 BY THE END OF THE FIRST YEAR OF SERVICE

THE MARKET IS GROWING REALLY RAPIDLY SAID LINK RESOURCES ANALYST STEVE
SIECK WHO ESTIMATES THE MARKET WILL GROW BY MORE THAN A MILLION USERS A
YEAR IT'S NO WONDER A LOT OF PEOPLE ARE GETTING INTO IT

INTERCHANGE PRESENTS PARTICULAR COMPETITIVE PRESSURE FOR COMPUSERVE WHICH
CARRIES ZIFFNET AND WHICH HAS DRAWN COMPUTER FANATICS FOR 15 YEARS
COMPUSERVE CAN'T DROP ZIFFNET SAID ANALYST GARY ARLEN OF ARLEN
COMMUNICATIONS THE NEW SERVICE HE SAID GIVES ZIFF A WAY TO STAY WHERE
THEY ARE AND STILL SIPHON OFF SOME OF COMPUSERVE'S BEST CUSTOMERS BARRY
BERKOV EXECUTIVE VICE PRESIDENT OF INFORMATION SERVICES FOR COMPUSERVE
SAID HE ISN'T WORRIED ABOUT THE NEW COMPETITION ULTIMATELY IT'S GOING TO
EXPAND THE MARKETPLACE HE SAID SEVERAL INDUSTRY OFFICIALS SAID CUSTOMERS
WILL SUBSCRIBE TO MORE THAN ONE SERVICE IN THE FASTGROWING ONLINE
INDUSTRY

ZIFF ALSO PLANS TO ADVERTISE ON THE NEW SERVICE TESTING FEEDBACK THE FIRST
FEW MONTHS ITS MAGAZINE PORTFOLIO RAN MORE THAN 700 MILLION IN ADVERTISING
IN 1993 AND OFFICIALS EXPECT TO GARNER AD REVENUE ON INTERCHANGE MARY
MODAHL AN ANALYST FOR FORRESTER RESEARCH INC SAID THAT THE POTENTIAL FOR
ADVERTISING ONLINE IS LARGE WHEN IT IS AIMED AT SPECIALINTEREST MARKETS

THE COMPANY DOESN'T SEE THE SERVICE CUTTING INTO PRINTMAGAZINE SALES MR
KOLOWICH SAID ELECTRONIC AND PRINT ARE COMPANION MEDIA  FEEDING OFF
EACH OTHER 9401240076 940124 EDUCATION PRIVATE GROUPS COMPETE FOR THE
CHANCE TO CREATE NEW SCHOOLS WITH PUBLIC FUNDS  BY STEVE STECKLOW
 STAFF REPORTER OF THE WALL STREET JOURNAL

BOSTON CLASSROOMS WITH POLITICIANS AS LECTURERS  ACADEMIC
INSTRUCTION AIDED BY YOGA  SCHOOL DOORS OPEN FROM DAWN TO DUSK  
PUBLIC SCHOOLS RUN FOR PROFIT

EACH OF THESE CONCEPTS STANDS A FAIR CHANCE OF BECOMING REALITY IN THE STATE
OF MASSACHUSETTS A RADICAL NEW STATE EDUCATION LAW AUTHORIZES THE
ESTABLISHMENT OF UP TO 25 SOCALLED CHARTER SCHOOLS PUBLIC SCHOOLS THAT
RECEIVE STATE FUNDING AS WELL AS SOME MEASURE OF AUTONOMY FROM LOCAL SCHOOL
BOARDS AND THE RULES THAT GOVERN CONVENTIONAL SCHOOLS

CHARTER SCHOOLS ALREADY ARE OPERATING IN MINNESOTA AND CALIFORNIA AND FIVE
OTHER STATES RECENTLY ENACTED CHARTERSCHOOL LEGISLATION ADVOCATES OF SUCH
SCHOOLS ARGUE THAT THEY PROVIDE BADLY NEEDED COMPETITION FOR EXISTING PUBLIC
SCHOOLS BY GIVING ANYONE WITH A GOOD EDUCATION IDEA ACCESS TO GOVERNMENT
FUNDING SO LONG AS THEY CAN ATTRACT STUDENTS

BUT MASSACHUSETTS' LAW HAS ATTRACTED PARTICULARLY GREAT INTEREST AMONG
EDUCATORS AND POTENTIAL OPERATORS BECAUSE IT PROVIDES GREATER INDEPENDENCE
FROM THE EDUCATIONAL ESTABLISHMENT THAN ELSEWHERE UNLIKE MOST OTHER STATES
MASSACHUSETTS NOT LOCAL SCHOOL BOARDS WILL GRANT THE CHARTERS 
REFLECTING A BELIEF BY STATE OFFICIALS THAT THE EXISTING PUBLICSCHOOL
SYSTEM IS INCAPABLE OF MAKING SERIOUS CHANGE INDEED THESE OFFICIALS SAY
THAT THE SYSTEM HAS FAILED CHILDREN AND THAT PARENTS TEACHERS AND PRIVATE
COMPANIES SHOULD BE GIVEN A CHANCE TO DO BETTER

I THINK IT'S THE MOST EXCITING ISSUE WE HAVE HAD IN EDUCATION IN A LONG
TIME SAYS MASSACHUSETTS SECRETARY OF EDUCATION PIEDAD F ROBERTSON WE
HAVE BEEN EXPERIMENTING AROUND THE EDGES AND FINALLY WE CALL IT BY A NAME
AND WE HAVE MADE IT LEGAL

WITH APPLICATIONS TO RUN THE FIRST CHARTER SCHOOLS DUE BY FEB 15 STATE
OFFICIALS SAY 33 DIFFERENT GROUPS INCLUDING WHITTLE COMMUNICATIONS INC'S
EDISON PROJECT AND SEVERAL OTHER PRIVATE COMPANIES HAVE EXPRESSED
INTEREST IN APPLYING ALTHOUGH UNDER THE CURRENT LAW THE FIRST CHARTER
SCHOOLS CANNOT OPEN UNTIL SEPTEMBER 1995 STATE OFFICIALS ARE HOPING TO
AMEND THE LAW TO ALLOW SOME SCHOOLS TO OPEN THIS FALL AND TO ELIMINATE THE
25SCHOOL LIMIT BUT SO FAR THEY HAVE BEEN UNSUCCESSFUL

UNDER THE NEW LAW PUBLICSCHOOL TEACHERS IN MASSACHUSETTS CAN TAKE A
TWOYEAR LEAVE OF ABSENCE TO TEACH IN CHARTER SCHOOLS THE SCHOOLS WILL BE
PARTICULARLY ATTRACTIVE TO PUBLICSCHOOL TEACHERS WHO HAVE SAID ENOUGH
ALREADY WE KNOW EXACTLY HOW WE WOULD RUN THE CIRCUS' SAYS LISA BLOUT THE
STATE'S UNDERSECRETARY OF EDUCATION

AS FOR POTENTIAL OPERATORS THE EDISON PROJECT PLANS TO PROPOSE AT LEAST ONE
SCHOOL AT FIRST WITH ELEMENTARY AND MIDDLESCHOOL GRADES BUT LATER
EXPANDING INTO HIGH SCHOOL WITH A COMPUTERAIDED CURRICULUM INCLUDING AT
LEAST 3 MILLION IN TECHNOLOGICAL TOOLS BENNO SCHMIDT PRESIDENT OF THE
EDISON PROJECT SAYS HIS COMPANY IS TALKING WITH ABOUT A DOZEN MASSACHUSETTS
MUNICIPALITIES AND SOME LOCAL SCHOOL BOARDS ABOUT JOINTLY APPLYING FOR
CHARTERS HE SAYS HE HOPES THAT COOPERATING WITH LOCAL BOARDS WILL
GALVANIZE SUPPORT FOR THE SCHOOL IN THE COMMUNITY

REMEDIATION & EDUCATIONAL SUPPORT SYSTEMS INC A CLOSELY HELD COMPANY IN
SWANSEA MASS THAT PROVIDES COMPUTERIZED EDUCATIONAL SERVICES TO SCHOOLS
IN PUERTO RICO AND ELSEWHERE PLANS A NEW SCHOOL FROM KINDERGARTEN THROUGH
HIGH SCHOOL THAT STRESSES HISPANIC CULTURE AND IS EXPECTED TO APPLY FOR A
CHARTER ELSEWHERE IN THE STATE EXPECTED CHARTER APPLICANTS INCLUDE A
CONSORTIUM OF SIX BOSTON ARTS COLLEGES HOPING TO OPEN THE CITY'S FIRST
VISUAL AND PERFORMINGARTS HIGH SCHOOL

THEN THERE IS A DAYCARE CENTER IN LAWRENCE THAT WANTS TO CREATE AN
ELEMENTARY SCHOOL THAT WOULD BE OPEN FROM 6 AM TO 6 PM AND A PARENT FROM
FRANKLIN PLANS TO PROPOSE A HOLISTIC ELEMENTARY AND MIDDLE SCHOOL THAT
WOULD ADDRESS LEARNING WITH OUR HEART OUR HEADS OUR HANDS

TWO PUBLICSCHOOL TEACHERS IN CHELSEA WANT TO START A SCHOOL GRADES SEVEN
THROUGH 12 THAT WOULD STRESS CIVIC VALUES AND WOULD INVITE POLITICIANS INTO
THE CLASSROOM A GROUP OF AFRICANAMERICAN SCIENTISTS AND ENGINEERS WANTS TO
CREATE AN ELEMENTARY AND MIDDLE SCHOOL THAT STRESSES MATH AND SCIENCE AND
THE SWAMI VIVEKANANDA INTERNATIONAL FOUNDATION IN BOSTON ENVISIONS A NEW
SCHOOL FROM KINDERGARTEN TO POSTHIGH SCHOOL THAT WOULD COMBINE THE BEST OF
EASTERN THOUGHT AND THE BEST OF WESTERN THOUGHT AS WELL AS YOGA
INSTRUCTION SAYS RAMADHEEN RAMSAMOOJ THE FOUNDATION'S PRESIDENT

FOR MANY OF THE PROSPECTIVE APPLICANTS EUPHORIA OVER THE OPPORTUNITY TO
CREATE A NEW SCHOOL IS TEMPERED BY THE REALITY OF RAISING ENOUGH MONEY TO
GET IT STARTED WHILE THE LAW STIPULATES THAT CHARTER SCHOOLS WILL RECEIVE
THE SAME PERSTUDENT AID AS OTHER PUBLIC SCHOOLS IN BOSTON FOR EXAMPLE
THAT'S ABOUT 6200 PER STUDENT THERE IS NO PROVISION FOR ACQUIRING REAL
ESTATE DESKS TEXTBOOKS OR OTHER STARTUP COSTS

DIANNE H RUSSELL A BOSTON INVESTMENT BANKER WHO IS ADVISING THE EDISON
PROJECT ON LOWCOST FINANCING ALTERNATIVES SAYS SHE EXPECTS ONLY APPLICANTS
WITH THE STRONGEST PROPOSALS AND A DEMONSTRATED LEVEL OF EXCELLENCE IN
EDUCATION TO SUCCEED IN OBTAINING FUNDING FROM PUBLIC OR PRIVATE SOURCES
OTHERS SHE BELIEVES WILL FALL BY THE WAYSIDE

STATE OFFICIALS CONCEDE THAT BUYING RENTING OR LEASING SPACE IS THE BIGGEST
OBSTACLE FOR NEW CHARTER SCHOOLS THEY SAY THEY MAY TRY TO PROVIDE SURPLUS
STATE PROPERTY OR FIND EMPTY CLASSROOMS IN PUBLIC SCHOOLS OR COLLEGES OR
GUARANTEE LOWINTEREST LOANS

MASSACHUSETTS ALSO IS GRAPPLING WITH THE ISSUE OF THE SEPARATION OF CHURCH
AND STATE OPPONENTS OF CHARTER SCHOOLS NOTE THAT SOME OF THE SCHOOLS'
EXPECTED CURRICULA AND APPLICANTS APPEAR TO BE RELIGIOUS IN NATURE CAREFUL
LEGAL REVIEW WILL THEREFORE BE NECESSARY TO DETERMINE AN APPLICANT'S
ELIGIBILITY FOR PUBLIC FUNDING

AMONG OPPONENTS TO CHARTER SCHOOLS IS MASSACHUSETTS' LARGEST TEACHERS'
UNION KATHLEEN KELLEY PRESIDENT OF THE MASSACHUSETTS FEDERATION OF
TEACHERS SAYS THAT BECAUSE CHARTER SCHOOLS CAN RESTRICT THEIR ENROLLMENT TO
STUDENTS WHO MEET CERTAIN ACADEMIC STANDARDS THEY COULD END UP A SET OF
SEPARATE ELITE SCHOOLS SHE ADDS THAT CHARTER SCHOOLS WILL DRAIN RESOURCES
FROM PREEXISTING SCHOOLS

BUT DR ROBERTSON THE EDUCATION SECRETARY COUNTERS THAT WE CAN'T CONTINUE
TO FAIL CHILDREN WHICH IS WHAT WE'RE DOING  THIS HAS THE POTENTIAL OF
NOT ONLY DELIVERING FOR CHILDREN BUT ALSO CREATING MODELS THAT THE REST OF
THE PUBLIC SYSTEM CAN IMITATE

PRELIMINARY IDEAS FOR POSSIBLE CHARTER SCHOOLS IN MASSACHUSETTS

 AN ELEMENTARY SCHOOL THAT WOULD BE OPEN FROM 6 AM TO 6 PM
9401240075 940124 POLITICS & POLICY FORMER LAWMAKER SAYS LUCRATIVE JOB
 AS LOBBYIST OFFERED WAY OUT OF CONGRESS  BY JOHN HARWOOD STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON IN TODAY'S POISONOUS POLITICAL CLIMATE GLENN ENGLISH SAYS
THE ONLY WAY HE COULD LEAVE CONGRESS WITHOUT BEING CRITICIZED IS TO HAVE
DIED

HE DIDN'T BUT MR ENGLISH FOUND HIS OWN VERSION OF BELTWAY HEAVEN ANYWAY
AFTER 19 YEARS AS AN OKLAHOMA CONGRESSMAN THE CONSERVATIVE DEMOCRAT
RESIGNED HIS SEAT THIS MONTH TO TAKE THE HELM OF THE NATIONAL RURAL ELECTRIC
COOPERATIVE ASSOCIATION

SCORES OF EXLAWMAKERS TURN TO WELLPAID JOBS INFLUENCING GOVERNMENT BUT
MR ENGLISH STANDS OUT IN THE CAPITAL'S REVOLVINGDOOR CULTURE HE DIDN'T
WAIT AS IS TYPICAL FOR VOTERS TO OUST HIM OR EVEN TO SERVE OUT HIS TERM
WHEN THE ASSOCIATION ASKED HIM LATE LAST YEAR TO REPLACE ITS RETIRING TOP
EXECUTIVE FORMER CONGRESSMAN AND AGRICULTURE SECRETARY BOB BERGLAND HE
PROMPTLY ABANDONED HIS SIXTH DISTRICT HOUSE SEAT IN MIDTERM

TALK ABOUT THE REVOLVING DOOR COMPLAINS CHARLES LEWIS WHO HEADS THE
WASHINGTONBASED CENTER FOR PUBLIC INTEGRITY THIS ONE CAME UNHINGED MR
LEWIS SAYS THE LUCRATIVE JOB REEKS OF A QUID PRO QUO FOR MR ENGLISH'S
EFFORTS AS CHAIRMAN OF A HOUSE RURALDEVELOPMENT SUBCOMMITTEE TO FEND OFF
WHITE HOUSE PLANS TO CUT BACK ON RURAL ELECTRIFICATION ADMINISTRATION
SUBSIDIES TO THE TRADE ASSOCIATION'S MEMBERS MR ENGLISH AND MR BERGLAND
BOTH DENY IT INSISTING THE OKLAHOMAN WASN'T APPROACHED ABOUT THE VACANCY
UNTIL CONGRESS HAD COMPLETED ITS WORK ON THE REA BUDGET

MR ENGLISH SEES NOTHING WRONG WITH TAKING THE TRADEGROUP JOB ARGUING THAT
IT GIVES ME A CHANCE TO DO SOMETHING POSITIVE FOR RURAL INTERESTS HE HAS
LONG CHAMPIONED IT HOLDS OTHER ALLURES AS WELL INSTEAD OF FACING A CYNICAL
PRESS CORPS AND SHUTTLING TO OKLAHOMA ON WEEKENDS MR ENGLISH WILL WORK IN
COMFORTABLE OBSCURITY FOR THE WASHINGTONBASED TRADE GROUP INSTEAD OF
MERELY BATTLING TO STAVE OFF RURAL BUDGET CUTS HE'LL SOON LOBBY OLD FRIENDS
IN CONGRESS AS HE OVERSEES NEW RURAL PROGRAMS HE HELPED DESIGN ON CAPITOL
HILL AND HE'LL GET A HEFTY RAISE FROM HIS OLD 133600 CONGRESSIONAL
SALARY MR ENGLISH WON'T DISCLOSE HIS COMPENSATION BUT HIS PREDECESSOR
EARNED 230000

BUT HIS DEPARTURE MAY ALSO FUEL PUBLIC DISCONTENT OVER THE INFLUENCE OF
SPECIAL INTERESTS ON CONGRESS IT LOOKS AWFUL SAYS BROOKINGS INSTITUTION
SCHOLAR THOMAS MANN

PARADOXICALLY IT DOESN'T LOOK SO AWFUL TO MR ENGLISH'S LARGELY RURAL
CONSTITUENCY STATE CORPORATION COMMISSIONER BOB ANTHONY MR ENGLISH'S
REPUBLICAN OPPONENT IN A BITTER 1992 CAMPAIGN DECLINES TO CRITICIZE THE
MOVE AND CALLS HIS FORMER RIVAL PRETTY POPULAR THOUGH ONE GOP STATE
LEGISLATOR SAYS MR ENGLISH SHOULD HELP FINANCE THE 250000PLUS COST OF
THE MAY 10 SPECIAL ELECTION TO REPLACE HIM MR ENGLISH HASN'T CAUGHT MUCH
FLAK FROM OKLAHOMANS

MANY OF MR ENGLISH'S ERSTWHILE COLLEAGUES AWARE THAT UNHAPPY VOTERS COULD
SOON SEND THEM JOBHUNTING ARE ENVIOUS MR LEWIS'S BARBS NOTWITHSTANDING
THE NEW JOB OFFERS A HANDSOME SALARY AND BENEFITS WITHOUT THE GREATER STIGMA
THAT ATTACHES TO ALLPURPOSE LOBBYISTSFORHIRE

IT'S SORT OF A NATURAL EXTENSION OF HIS PUBLICPOLICY WORK SAYS RETIRING
MINNESOTA DEMOCRATIC REP TIM PENNY A DEFICIT HAWK WHO CLASHED WITH MR
ENGLISH OVER BUDGET ISSUES WHILE SERVING ON THE OKLAHOMAN'S SUBCOMMITTEE BY
CONTRAST MR PENNY SAYS MANY EXLAWMAKERS END UP LANDING THESE CUSHY JOBS
THAT HAVE LITTLE TO DO WITH THEIR DISTRICTS OR WHY THEIR CONSTITUENTS SENT
THEM HERE

FOR SOME MR ENGLISH'S DEPARTURE SAYS LESS ABOUT THE REVOLVING DOOR THAN IT
DOES ABOUT THE DIMINISHED ATTRACTIVENESS OF LIFE IN TODAY'S CONGRESS SINCE
1990 INCREASING NUMBERS OF BATTLEWEARY INCUMBENTS HAVE DECIDED TO RETIRE
MR ENGLISH ISN'T THE FIRST TO LEAVE IN MIDTERM A YEAR AGO REPUBLICAN
WILLIS GRADISON RESIGNED HIS OHIO HOUSE SEAT AND A KEY ROLE IN THE
CONGRESSIONAL HEALTHCARE DEBATE TO ACCEPT THE LEADERSHIP OF THE HEALTH
INSURANCE ASSOCIATION OF AMERICA

FOR HIS PART MR ENGLISH 53 YEARS OLD WON'T MISS THE PUBLIC ENVIRONMENT
IN WHICH THE WHOLE THING IS TO TRASH THE CONGRESS AND EVERYONE CONNECTED TO
IT I THINK IT'S DOING LONGTERM DAMAGE TO OUR SYSTEM ON TOP OF THIS
NEGATIVE DRUMBEAT HE SAYS THE MOUNTING FOCUS ON DEFICIT REDUCTION MADE THE
SECOND DECADE OF HIS CAREER AS AN ADVOCATE OF RURAL DEVELOPMENT FAR MORE
FRUSTRATING THAN THE FIRST THOUGH HE SAYS HE WASN'T LOOKING FOR A WAY OUT
HE JUMPED AT THE CHANCE WHEN THE TRADE GROUP APPROACHED HIM

IF I'M GOING TO HELP PEOPLE FROM MY HOMETOWN I'M NOT GOING TO BE ABLE TO
DO IT FROM THE ENVIRONMENT CREDIT AND RURAL DEVELOPMENT SUBCOMMITTEE MR
ENGLISH INSISTS THE FEDERAL GOVERNMENT ISN'T GOING TO BE WHERE THE ACTION
IS IF I THOUGHT THERE WAS A CHANCE IN THE WORLD WE COULD GET NEW RESOURCES
FOR RURAL DEVELOPMENT I'D STILL BE SITTING IN CONGRESS

THE JOB IN CONGRESS IS GETTING LESS AND LESS FUN SAYS MR BERGLAND WHO
SERVED IN THE HOUSE FROM 1971 UNTIL 1977 MR BERGLAND ACKNOWLEDGES THE
REVOLVING DOOR'S POTENTIAL FOR CORRUPTION OF GOVERNMENT HE SAYS MR
ENGLISH WHO WILL OVERSEE THE ASSOCIATION'S 3 MILLION LOBBYING BUDGET AND
POLITICAL ACTION COMMITTEE A RELATIVELY SMALL PORTION OF THE GROUP'S
OVERALL ACTIVITIES WILL STRICTLY OBSERVE THE ONEYEAR COOLINGOFF PERIOD
IN WHICH EXLAWMAKERS ARE PROHIBITED FROM CONTACTING FORMER COLLEAGUES ABOUT
LEGISLATION THEN AGAIN HE ARGUES THAT THE SPECTER OF EXHOUSE MEMBERS
FLOWING THROUGH CAPITOL HALLWAYS LOOKS WORSE THAN IT IS

THERE'S NO SUCH THING MR BERGLAND SAYS AS A POWERFUL HASBEEN
9401240074 940124 TECHNOLOGY & MEDICINE TWO SATELLITES ARE CRIPPLED 
BY DISTURBANCE  BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL
STREET JOURNAL

OTTAWA A POWERFUL GEOMAGNETIC DISTURBANCE CRIPPLED TWO CANADIAN
COMMUNICATIONS SATELLITES DISRUPTING TELEVISION AND RADIO TRANSMISSIONS AND
NUMEROUS OTHER SERVICES THROUGHOUT THE COUNTRY

ONE SATELLITE HASN'T YET RESPONDED TO INSTRUCTIONS BEAMED FROM EARTH AND MAY
HAVE TO BE WRITTEN OFF AS SPACE JUNK THE OTHER WAS REPAIRED THURSDAY NIGHT
THE SATELLITES KNOWN AS ANIK E1 AND ANIK E2 ARE OPERATED BY TELESAT
CANADA WHICH IS CONTROLLED BY CANADA'S MAJOR TELEPHONE COMPANIES

THE INCIDENT HAS RAISED CONCERNS ABOUT THE RELIABILITY OF SATELLITE
COMMUNICATIONS ON WHICH MANY INDUSTRIES NOW RELY

THE DISTURBANCE SENT A POWERFUL BURST OF STATIC ELECTRICITY SURGING THROUGH
THE SATELLITES STATIC ELECTRICITY CAN BE THE KILLER OF ANY SATELLITE
SAID EARL MAIN AN INTELSAT ENGINEER INTELSAT IS A GLOBAL SATELLITE
BROADCASTING CONSORTIUM

STATIC ELECTRICITY HAS PREVIOUSLY INTERRUPTED SATELLITE SERVICE BUT THE
DAMAGE HAS NEVER BEEN AS EXTENSIVE AS THAT INCURRED BY ANIK E1 AND E2
TELESAT OFFICIALS SAID A FAILURE OF THIS MAGNITUDE IS UNPAR ALLELED IN THE
SATELLITE INDUSTRY

THE INCIDENT KNOCKED OUT POWER TO THE ANIK E1 AND E2'S MOMENTUM FLYWHEELS
THAT KEEP THE SATELLITES POINTING IN THE RIGHT DIRECTION TELESAT OFFICIALS
SAID THE GEOMAGNETIC DISTURBANCE WAS 100 TIMES GREATER THAN ANY OTHER
PREVIOUSLY DETECTED THEY SAID THAT THEY BELIEVE THE PROBLEM WASN'T CAUSED
BY DEFECTIVE EQUIPMENT THE FLYWHEELS WERE BUILT BY GENERAL ELECTRIC CO'S
AEROSPACE DIVISION WHICH WAS ACQUIRED LAST YEAR BY MARTIN MARIETTA CORP

THE ANIK SATELLITES ARE USED BY MAJOR TELEVISION AND RADIO BROADCASTERS
DEPARTMENT STORES BANKS HOTEL CHAINS TELEPHONE COMPANIES AND
MANUFACTURERS BY LATE YESTERDAY MOST DISRUPTED SERVICES HAD BEEN RESTORED
AS A RESULT OF TELESAT REROUTING SERVICE ONTO OTHER SATELLITES

THE SATELLITE FAILURE BLANKED OUT TELEVISION SERVICE TO SOME PARTS OF THE
COUNTRY IN MAJOR CANADIAN CITIES THE BROADCASTERS REESTABLISHED
TRANSMISSION QUICKLY BY SWITCHING TO UNDERGROUND FIBER OPTIC CABLE BUT IN
MORE REMOTE AREAS INCLUDING NORTHERN CANADA TRANSMISSION WAS INTERRUPTED
FOR HOURS TELEPHONE SERVICE IN PARTS OF NORTHERN CANADA WAS DISRUPTED UNTIL
TELEPHONE COMPANIES WERE ABLE TO SWITCH TO GROUND LINES

CANADIAN PRESS THE COUNTRY'S BIGGEST NEWS SERVICE WASN'T ABLE TO TRANSMIT
DATA FOR MORE THAN SEVEN HOURS THURSDAY TO MORE THAN 100 NEWSPAPERS AND 400
RADIO STATIONS FOR A WHILE IT LOOKED LIKE A DOOMSDAY SCENARIO SAID JIM
POLING A CANADIAN PRESS VICE PRESIDENT

THE INCIDENT WILL BE COSTLY FOR TELESAT THE ANIK E2 SATELLITE WHICH IS
STILL OUT OF SERVICE ISN'T INSURED AND TELESAT FEARS IT MAY FACE A
WRITEOFF OF 300 MILLION CANADIAN DOLLARS US2288 MILLION IF IT CAN'T BE
REPAIRED 9401240073 940124 SMALL STOCK FOCUS INTEL'S EARNINGS
SHORTFALL FAILS TO DIM OUTLOOK FOR TECH ISSUES  BY WARREN GETLER 
STAFF REPORTER OF THE WALL STREET JOURNAL

WHEN THE ELEPHANT STUMBLES NOT ALL THE ANTS GET CRUSHED

LAST WEEK'S DISAPPOINTING EARNINGS NEWS FROM MICROCHIP GIANT INTEL CORP MAY
HAVE SENT TREMORS THROUGHOUT THE TECHNOLOGY SECTOR BUT FEW MONEY MANAGERS
WHO PLAY AMONG SMALLCAPITALIZATION TECHNOLOGY ISSUES ARE RUNNING FOR COVER

INDEED SOME MARKET PROS STRONGLY BELIEVE THAT AN ARRAY OF SMALLCAP
TECHNOLOGY ISSUES PARTICULARLY IN THE COMPUTERNETWORKING SEMICONDUCTOR
AND TELECOMMUNICATIONS FIELDS CAN EASILY WEATHER THE EFFECTS OF INTEL'S
DISAPPOINTING NEWS AND MOVE HIGHER THOSE MONEY MANAGERS AND ANALYSTS FIGURE
THAT A MILD CORRECTION IN SOME OF THE SMALLER TECH STOCKS IS HEALTHY BECAUSE
MANY OF THE GROUP'S ISSUES HAVE BEEN TRADING AT OR NEAR RECENT 52WEEK
HIGHS BUY ON DIPS THEY RECOMMEND

WITH INTEL MISSING EARNINGS ESTIMATES BY FOUR CENTS A SHARE YOU CAN'T SAY
IT'S LIGHTS OUT FOR TECHNOLOGY' ASSERTS ROLAND GILLIS SENIOR PORTFOLIO
MANAGER FOR KEYSTONE CUSTODIAN FUND'S S4 FUND IN BOSTON

MONEY MANAGERS SUCH AS MR GILLIS SUGGEST THAT SMALLCAP COMPANIES IN THE
ADVANCED ELECTRONIC/INFORMATION TECHNOLOGY ARENA ARE STRONGLY POSITIONED TO
POST SUSTAINED EARNINGS GROWTH A PREREQUISITE FOR MAINTAINING INVESTOR
INTEREST IN AN EARNINGSDRIVEN MARKET

BUT NOBODY'S RECOMMENDING THROWING CAUTION TO THE WIND THE FACT THAT INTEL
A SANTA CLARA CALIF BEHEMOTH COULD TUMBLE 4 3/4 LAST WEDNESDAY AFTER
COMING UP SHORT OF ANALYSTS' 139 CONSENSUS EARNINGS FORECAST FOR THE
FOURTH QUARTER POINTS UP THE SENSITIVITY OF TECH STOCKS BIG OR SMALL 
TO EARNINGS DISAPPOINTMENTS INTEL'S STOCK INFACT HAS RECOVERED SOMEWHAT
CLIMBING 1 1/4 THURSDAY AND 1 3/8 FRIDAY TO CLOSE AT 65 1/8

THE TRICK SAY MONEY MANAGERS IS TO PICK SELECTIVELY AND HOLD FOR THE LONG
TERM SAYS DREW PECK A SEMICONDUCTOR ANALYST WITH COWEN & CO IN BOSTON
NERVOUS INVESTORS CAN'T REALLY SELL ENTIRE GROUPS AT THIS POINT BECAUSE
THERE ARE SO FEW OTHER OPTIONS SO YOU'RE SEEING THE DISSECTION OF
INDIVIDUAL STOCKS THAT DISAPPOINT THANKFULLY HE SAYS THOSE ALLEGED
DISAPPOINTMENTS HAVE GENERALLY BEEN PRETTY MINOR

OVERALL THE OUTLOOK FOR THE SEMICONDUCTOR INDUSTRY IS QUITE BRIGHT BECAUSE
OF THE EXPANDING CONSUMERELECTRONIC AND TELECOMMUNICATIONS SECTORS SAYS
MR PECK BUT DON'T LOOK FOR BARNBURNERS HE CAUTIONS MANY OF THESE
STOCKS HAD A BIG 1993 RUN AND AS A CONSEQUENCE THE UPSIDE FOR THE GROUP
MAY BE LIMITED WE'RE ALREADY SEEING MORE SELECTIVITY AMONG INVESTORS

THAT HOLDS TRUE NOT ONLY FOR SEMICONDUCTORS BUT THE BROAD RANGE OF SMALLCAP
TECH COMPANIES SAVVY INVESTORS SAY

MR GILLIS THE KEYSTONE FUND MANAGER LIKES TWO COMPANIES ENGAGED IN THE
COMPUTER NETWORKING BUSINESS 3COM CORP OF SANTA CLARA CALIF AND CHIPCOM
OF SOUTHBOROUGH MASS

WHAT ATTRACTS HIM TO 3COM A LOWCOST PROVIDER OF NETWORKING ADAPTER BOARDS
DEVICES THAT CONNECT PERSONAL COMPUTERS TO A NETWORK IS THE COMPANY'S
ABILITY TO GROW IN A LOWMARGIN MARKETPLACE TO INTRODUCE NEW PRODUCTS AND
MORE RECENTLY TO MOVE INTO HIGHERMARGIN BUSINESSES SUCH AS THE
NETWORKING ROUTER AND HUB MARKETS

MR GILLIS FAVORS CHIPCOM IN WHICH HIS FUND HOLDS MORE THAN 300000 SHARES
BECAUSE THE COMPANY OPERATES IN ONE OF THE FASTESTGROWING PRODUCT LINES IN
TELECOMMUNICATIONS THE HUB MARKET HUBS ARE INTELLIGENT SWITCHING SYSTEMS
OR WHAT AMOUNT TO ELECTRONIC TRAFFIC COPS FOR NETWORKS AND TEND TO BE
HIGHERPROFITMARGIN PRODUCTS CHIPCOM HE SAYS MAY SEE ITS EARNINGS GROW
AS MUCH AS 40 THIS YEAR TO 2 A SHARE

WHILE CHIPCOM'S STOCK IS TRADING AT A RICH MULTIPLE OF NEARLY 44 TIMES
TRAILING EARNINGS ITS MULTIPLE RELATIVE TO EXPECTED GROWTH IS LOW MR
GILLIS SAYS WHAT ALSO HOLDS HIS INTEREST IS THE FACT THAT INTERNATIONAL
BUSINESS MACHINES HAS BEEN SUCCESSFULLY MARKETING CHIPCOM'S CORE PRODUCT
THROUGH A JOINT VENTURE

COMPUTER NETWORKING STOCKS INCLUDING 3COM ALSO FIGURE PROMINENTLY IN THE
HOT SELIGMAN COMMUNICATIONS AND INFORMATION FUND LAST YEAR'S
BESTPERFORMING PORTFOLIO OUT OF 20 SCIENCE AND TECHNOLOGY STOCK FUNDS
ACCORDING TO RANKINGS BY LIPPER ANALYTICAL SERVICES THE 112 MILLIONASSET
FUND WAS UP 357 LAST YEAR AND IS UP 7 SO FAR THIS YEAR

PAUL WICK THE PORTFOLIO'S NEW YORKBASED MANAGER SAYS HE WANTS TO BE
INVESTED IN COMPANIES THAT HAVE STRONG SECULAR GROWTH AND HAVE LARGELY
PROPRIETARY PRODUCTS SO THAT CLIENTS CANNOT EASILY GO TO COMPETING VENDORS
FOR ESSENTIALLY THE SAME ITEM HE'S THEREFORE AVOIDING SUCH BANGEDUP
SECTORS AS COMPUTERDISKDRIVE MAKERS AND PC MAKERS WHICH ARE SUFFERING
FROM OVERCAPACITY AND VICIOUS PRICE WARS

IN ADDITION TO 3COM HE HOLDS STAKES IN A HANDFUL OF NETWORKING AND RELATED
SOFTWARE COMPANIES STANDARD MICROSYSTEMS A MANUFACTURER OF LOCALAREA
NETWORK EQUIPMENT XYPLEX A PRODUCER OF DATACOMMUNICATIONS NETWORK SYSTEMS
AND FTP SOFTWARE

BUT THE BULK OF THE SELIGMAN TECHNOLOGY PORTFOLIO IS COMPRISED OF SMALLCAP
MICROCHIP MAKERS AND MICROCHIPEQUIPMENT MANUFACTURERS

THESE STOCKS ARE NOTORIOUSLY VOLATILE BUT PEOPLE ARE GOING TO JUST HAVE TO
LIVE WITH THAT VOLATILITY IF THEY FEEL ANY KIND OF CONVICTION ABOUT THE
POSITIVE SECULAR TRENDS INFLUENCING THE INDUSTRY HE SAYS ONE IMPORTANT
TREND HE ASSERTS IS GROWING DEMAND FOR EMBEDDED INTELLIGENCE CHIPS USED
IN ANTILOCK BRAKE SYSTEMS VIDEO GAMES REMOTECONTROL DEVICES AND THE LIKE

THREE FAVORITES ZILOG INC DALLAS SEMICONDUCTOR AND MICROCHIP TECHNOLOGY
ALL THREE HAVE PROPRIETARY PRODUCTS WHICH ENABLES THEM TO HAVE
ABOVEAVERAGE PROFIT MARGINS

AMONG SMALLCAP CHIP SUPPLIERS TO THE PORTABLE ELECTRONICS INDUSTRY MR
WICK FAVORS MAXIM INTEGRATED PRODUCTS A SUNNYVALE CALIF COMPANY THAT HAS
HAD 30 COMPOUNDED EARNINGS GROWTH FOR THE PAST FOUR YEARS WHAT MAXIM'S
PRODUCTS DO IS MAXIMIZE BATTERY POWER IN BATTERYINTENSIVE PORTABLE
ELECTRONIC DEVICES SUCH AS CELLULAR PHONES AND PORTABLE PCS HE SAYS
MAXIM HE NOTES HAS HAD 30 CONSECUTIVE QUARTERS OF HIGHER REVENUE AND
EARNINGS

AS FOR CHIPEQUIPMENT MAKERS MR WICK IS BULLISH ON ASYST A SMALL
MANUFACTURER OF ROBOTICARM EQUIPMENT USED IN MINIATURE CLEANROOM
ENVIRONMENTS LAM RESEARCH WHICH MAKES ETCHING EQUIPMENT USED FOR THE
PRODUCTION OF ADVANCED SEMICONDUCTORS AND COGNEX WHICH PRODUCES
MACHINEVISION SYSTEMS THAT INSPECT FOR QUALITY CONTROL IN CHIP PRODUCTION

CELADON GROUP INC AN INTERNATIONAL FREIGHT CONCERN SURGED TO 17 1/2 FROM
ITS OFFERING PRICE OF 1450

MR COFFEE INC BEDFORD HEIGHTS OHIO JUMPED 2 1/4 TO 14 THE COMPANY SAID
IT HAS RECEIVED AN OFFER TO DISCUSS A POSSIBLE BUSINESS COMBINATION WITH A
POTENTIAL BUYER FURTHER DETAILS WEREN'T DISCLOSED

ELDEC CORP LYNNWOOD WASH ROSE 1 1/2 TO 9 1/4 THE MAKER AND DESIGNER OF
ELECTRONIC AND ELECTROMECHANICAL PRODUCTS SAID IT HAS BEEN APPROACHED BY
SEVERAL COMPANIES THAT HAVE EXPRESSED AN INTEREST IN ACQUIRING ELDEC

THE RUSSELL 2000 INDEX CLIMBED TO ITS EIGHTH STRAIGHT CLOSING HIGH RISING
043 POINT OR 016 TO END AT 26380 THE INDEX CHARTS THE PERFORMANCE OF
SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR
EXCHANGES 9401240072 940124 THE OUTLOOK CHINA INFLATION ALARMS US
THREATENS REFORM  BY MARCUS W BRAUCHLI

BEIJING DURING HIS VISIT HERE LAST WEEK US TREASURY SECRETARY LLOYD
BENTSEN URGED CHINA TO MOVE SWIFTLY TO DAMP THIS NATION'S SMOLDERING
INFLATIONAND FOR GOOD REASON

THE GREATEST RISK TO CHINA'S PASSAGE FROM STATERUN TO MARKET ECONOMY IS
INFLATION IT COULD STALL REFORM MEASURES OR SEND THE REDHOT ECONOMY INTO A
TAILSPIN WITH POTENTIALLY DIRE CONSEQUENCES FOR CHINA'S INTERNAL
STABILITY AND FOR US INVESTORS HERE BOTH THE WORLD BANK AND THE
ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT HAVE WARNED RECENTLY
THAT EXPLOSIVE MONEYSUPPLY GROWTH AND EASY CREDIT IN CHINA THREATEN TO
IGNITE INFLATION IN SOME CITIES CONSUMER PRICES ALREADY ARE 20 OR MORE
ABOVE LEVELS OF A YEAR AGO

IN PART BECAUSE OF SUCH CONCERNS THE US WANTS TO HELP CHINA FIND NEW WAYS
TO MANAGE ITS COMPLEX ECONOMY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN
IS PLANNING A TRIP TO BEIJING AND SECRETARY BENTSEN HAS OFFERED TO SEND
INTERNAL REVENUE SERVICE ADVISERS TO HELP CHINA BETTER COLLECT TAXES MR
BENTSEN ALSO PROMISED TO MAKE STABLE CHINESE GROWTH A FOCUS OF REGULAR
BILATERAL TALKS

IT IS NO SURPRISE THAT CHINA'S ECONOMY IS GETTING ATTENTION AFTER RACING
ALONG AT AN AVERAGE GROWTH RATE OF 95 A YEAR FOR THE PAST DECADE CHINA'S
REFORMDRIVEN ECONOMY IS BY SOME MEASURES THE WORLD'S THIRD LARGEST LAST
YEAR BY CHINA'S RECKONING SOME 20 BILLION WAS INVESTED IN THE COUNTRY BY
OUTSIDE INTERESTS THE ASIAN GIANT ALSO IS A BIG BORROWER IT HAS ABOUT 73
BILLION IN FOREIGN DEBT AND THIS YEAR PLANS TO SOLICIT ANOTHER 1 BILLION IN
NEW YORK

IN 1993 THE COUNTRY ALSO SUCKED IN GOODS VALUED AT 104 BILLION 
EVERYTHING FROM SATELLITES AND SUPERCOMPUTERS TO AUTOMOBILES AND MACHINE
TOOLS ITS EXPORTS SUCH AS RAW MATERIALS TEXTILES AND CONSUMER
ELECTRONICS WERE VALUED AT 92 BILLION INFLATION COULD THROW A WRENCH INTO
THIS HUMMING ECONOMIC ENGINE HIGHER PRICES MAKE IT INITIALLY MORE EXPENSIVE
FOR OUTSIDERS TO SOURCE GOODS IN CHINA AND CHRONICALLY COSTLIER FOR
CONSUMERS HERE TO BUY FOREIGN PRODUCTS THAT EVENTUALLY COULD LEAD TO A
DEVALUATION OF THE CHINESE YUAN OR ERODE CHINA'S HARDCURRENCY HOLDINGS AND
LIMIT IMPORTS ESPECIALLY BIGTICKET INFRASTRUCTURE ITEMS NECESSARY FOR
DEVELOPMENT

INFLATION IS PROBABLY THE KEY CONCERN IN CHINA SAYS NED HALL A VICE
PRESIDENT OF AES CHINA GENERATING CO A US VENTURE THAT PLANS TO INVEST
AS MUCH AS 2 BILLION BUILDING A 2100MEGAWATT POWER PLANT IN CENTRAL
CHINA SO CONCERNED IS AES ABOUT THE PROSPECT OF A DEVALUATION THAT IT WANTS
A GUARANTEE FROM ITS CHINESE PARTNERS THAT THEY WILL BEAR ALL CURRENCY RISK

TO REIN IN THE ECONOMY ZHU RONGJI CHINA'S VICE PREMIER AND CENTRAL BANK
CHIEF HAS TRIED TO CLAMP DOWN ON LENDING AND BAN FRIVOLOUS INVESTMENTS HE
IS ATTEMPTING TO RESTRUCTURE CHINA'S FINANCIAL SYSTEMS TO MARSHAL AND
ALLOCATE FUNDS MORE EFFICIENTLY WITHOUT RESORTING TO THE INFLATIONARY PATH
OF PRINTING MORE MONEY

COMPLEX HARDTOCOLLECT TAXES HAVE BEEN REPLACED WITH A SIMPLIFIED
VALUEADDED TAX OF ABOUT 17 WHAT HAD BEEN AN AWKWARD INEFFICIENT
FOREIGNEXCHANGE RATE HAS BEEN UNIFIED INTO A SINGLE MARKETDRIVEN RATE
AND STATE BANKS ARE BEING TRANSFORMED INTO COMMERCIAL ONES

AT THE SAME TIME THE GOVERNMENT IS TRYING TO CUT ITS ROLE IN INDUSTRY AND
MAKE MORE ENTERPRISES RESPONSIBLE FOR THEMSELVES IT ALSO AIMS TO LIFT PRICE
CONTROLS IN SENSITIVE AREAS LIKE OIL COAL AND TRANSPORT THE MEASURES MAY
RESULT IN GREATER UNEMPLOYMENT JUST AS BASIC COMMODITIES ARE GETTING
PRICIER FOR THAT REASON BEIJING HAS ALSO ALREADY INDICATED IT WILL
SUBSIDIZE SOME INDUSTRIES TO SOFTEN THE TRANSITION

THE PROBLEM IS THE GOVERNMENT WANTS HIGH GROWTH AND NOT HIGH INFLATION
SAYS A BEIJING ECONOMIST FOR EXAMPLE JUST A FEW MONTHS INTO AN AUSTERITY
PROGRAM MR ZHU LAUNCHED LAST YEAR TO AMONG OTHER THINGS FIGHT INFLATION
OTHER OFFICIALS INCLUDING DENG XIAOPING INDICATED THEY FAVORED FASTER
GROWTH OVER CAUTION

IF THERE ARE SOME PROBLEMS LET THERE BE SOME PROBLEMS HE'S VERY CLEAR
ABOUT THIS SAYS FAN GANG AN ECONOMIST REFERRING TO MR DENG

ALARMED THE CENTRAL GOVERNMENT HAS REIMPOSED PRICE CONTROLS ON 27 KEY
COMMODITIES AND NOW WARNS AGAINST PROFITEERING TO GET THE MESSAGE OUT
CHINESE PRESIDENT JIANG ZEMIN AND OTHER OFFICIALS HAVE MADE PERSONAL SPOT
CHECKS AT MARKETS IN BEIJING

BUT THEY MAY HAVE TO TAKE STRONGER MEASURES PRIVATE FORECASTERS HAVE WARNED
THAT IF THE ECONOMY STAYS ON ITS CURRENT TRACK THE INFLATION RATE THIS
YEAR WILL RISE 9401240071 940124 BUSINESS BRIEF STUDENT LOAN CORP 
PROFIT FOR QUARTER FELL 48 NET INTEREST MARGIN IS CITED

STUDENT LOAN CORP SAID FOURTHQUARTER NET INCOME FELL 48 MAINLY DUE TO A
DECLINE IN NET INTEREST MARGIN

FOR THE QUARTER THE PITTSFORD NY ORIGINATOR OF STUDENT LOANS SAID NET
INCOME FELL TO 151 MILLION OR 75 CENTS A SHARE FROM THE YEAREARLIER
QUARTER'S 158 MILLION OR 79 CENTS A SHARE REVENUE ROSE 59 TO 367
MILLION FROM 346 MILLION

FOR THE YEAR THE COMPANY WHICH IS 80OWNED BY CITICORP'S CITIBANK UNIT
POSTED A 26 INCREASE IN NET INCOME TO 647 MILLION OR 323 A SHARE
FROM A YEAREARLIER 509 MILLION OR 255 A SHARE THE GAIN REFLECTED
PRIMARILY AN INCREASE IN THE STUDENTLOAN PORTFOLIO REVENUE ROSE 27 TO
1478 MILLION FROM 1169 MILLION 9401240070 940124 INTERNATIONAL BRIEF
 BAT INDUSTRIES PLC BROWN & WILLIAMSON UNIT IN US TO BE
REORGANIZED

BA T INDUSTRIES PLC SAID IT WILL REORGANIZE ITS US TOBACCO SUBSIDIARY
BROWN & WILLIAMSON RESULTING IN A CHARGE AGAINST 1993 EARNINGS OF
APPROXIMATELY 45 MILLION 674 MILLION

BROWN & WILLIAMSON WILL CUT 700 OF ITS CURRENT 5300 JOBS IN THE US A
BA T SPOKESMAN SAID THE CUTS WILL INCLUDE A 25 DECLINE IN SALES STAFF
AND A 20 REDUCTION OF ADMINISTRATIVE STAFF AT ITS LOUISVILLE KY
HEADQUARTERS

BA T SAID THE COMPANY WAS COMING UP WITH A VERY RADICAL INCENTIVE PROGRAM
FOR THE SALES STAFF THAT FOCUSED MORE ON GETTING THE PRODUCTS TO THE
CUSTOMERS RATHER THAN MERELY TO THE STORES THE SPOKESMAN WOULDN'T
ELABORATE

THE REORGANIZATION WHICH THE COMPANY EXPECTS TO COMPLETE BY LATE SPRING
ONLY AFFECTS US TOBACCO SALES THE SPOKESMAN SAID

IN THE US BROWN & WILLIAMSON SELLS SEVERAL MAJOR CIGARETTE BRANDS
INCLUDING KOOL CAPRI AND VICEROY INTERNATIONALLY IT ALSO SELLS KENT AND
LUCKY STRIKE 9401240069 940124 BUSINESS BRIEF TESORO PETROLEUM CORP
 OIL AND GAS CONCERN POSTS FOURTHQUARTER PROFIT RISE

TESORO PETROLEUM CORP SAN ANTONIO REPORTED PRELIMINARY EARNINGS OF 1 A
SHARE FOR THE FOURTH QUARTER COMPARED WITH A NET LOSS OF 193 A SHARE A
YEAR EARLIER

NET INCOME WAS 166 MILLION ON REVENUE OF 207 MILLION COMPARED WITH A NET
LOSS OF 249 MILLION ON REVENUE OF 236 MILLION A YEAR EARLIER THE
YEARAGO RESULTS INCLUDE CHARGES OF 175 MILLION FROM ACCOUNTING CHANGES

FOR THE YEAR THE OIL AND GAS COMPANY REPORTED EARNINGS OF 17 MILLION OR
54 CENTS A SHARE ON REVENUE OF 835 MILLION IN 1992 IT HAD A NET LOSS OF
659 MILLION OR 534 A SHARE ON REVENUE OF 954 MILLION

FOR THE YEAR THE COMPANY REPORTED A GAIN OF 8 MILLION FROM REDUCED
EXPENSES FOR INCOME TAX AND RELATED INTEREST WHILE REPORTING CHARGES OF
206 MILLION FROM ACCOUNTING CHANGES AND 196 MILLION FROM A CONTRACT
SETTLEMENT COSTREDUCTION PROGRAM AND EMPLOYEE TERMINATIONS 9401240068
940124 CROSSBORDER DEALS JUMPED LAST YEAR TO RECORD LEVELS  BY
BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK CROSSBORDER TRANSACTIONS MAINLY ACQUISITIONS AND JOINT
VENTURES REACHED A RECORD 152 BILLION LAST YEAR CLIMBING BY ALMOST 20
FROM 1992 AND THREE TIMES FROM 1990 LEVELS ACCORDING TO KPMG PEAT MARWICK

THE ACCOUNTING AND CONSULTING FIRM ALSO FOUND THAT THE US FOR THE SECOND
YEAR IN A ROW INVESTED MORE MONEY ABROAD THAN FOREIGN BUSINESSES INVESTED
HERE IN 1992 AMERICAN FIRMS SENT 40 BILLION OVERSEAS SIGNIFICANTLY MORE
THAN THE 34 BILLION MOVING THE OPPOSITE WAY

THIS IS A SEA CHANGE SAID STEPHEN BLUM KPMG'S NATONAL DIRECTOR OF
CORPORATE FINANCE FOR SO MANY YEARS OUR COUNTRY WAS MORE OF A TARGET FOR
DEALDOERS NOW WITH OUR ADVANCED ECONOMIC RECOVERY OUR STRONG STOCK
MARKETS AND STRENGTHENING DEBT MARKETS AND A RELATIVELY STRONG DOLLAR
FIRMS HERE ARE BETTER POSITIONED TO REACH ABROAD THAN THEY HAVE BEEN FOR
YEARS

THE STUDY CONCLUDES THAT MORE CROSSBORDER INVESTMENTS ARE BEING MADE THROUGH
JOINT VENTURES AND MINORITY INVESTMENTS THAN THROUGH MERGERS AND
ACQUISITIONS THIS UNDERSCORES THE DOMINANCE OF STRATEGIC PLAYERS IN
CONTRAST TO THE FINANCIALLY ORIENTED PURCHASERS OF THE LATE 1980S MR BLUM
ASSERTED

FOREIGN INVESTORS FOUND US ELECTRICAL AND ELECTRONICS FIRMS PARTICULARLY
ATTRACTIVE OTHER US INDUSTRIES ATTRACTING FOREIGN CAPITAL IN 1993
INCLUDED OIL AND GAS AND CHEMICALS AND PHARMACEUTICALS

CAPITAL FLOWS ARE CONSTANTLY CHANGING COURSE AND THE STUDY CONFIRMED A
NUMBER OF TRENDS JAPANESE CROSSBORDER INVESTMENTS WERE JUST 4 BILLION LAST
YEAR DOWN FROM AN AVERAGE 11 BILLION IN 1991 AND 1992 CHINA AND RUSSIA
HAVE ALSO BECOME FAVORED CAPITAL DESTINATIONS CAPTURING 22 BILLION LAST
YEAR ABOUT SIX TIMES MORE THAN THEY DID IN 1991

BUT WHILE SOME THINGS CHANGE OTHERS STAY THE TIME THE US AND BRITAIN
ARE AS THEY ALMOST ALWAYS HAVE BEEN THE WORLD'S FAVORITE INVESTMENT
TARGETS THE TWO NATIONS WERE ALSO MAJOR CAPITAL SOURCES LAST YEAR
ACCOUNTING FOR 68 BILLION IN OUTBOUND INVESTMENTS 45 OF THE WORLDWIDE
TOTAL 9401240067 940124 IVAN THE TERRIBLE IS FINDING ALASKA CLOSING
ICE CURTAIN  SIBERIANS WEAR OUT WELCOME AND GET COLD SHOULDER 
FROM THE FOLKS IN NOME  BY CHARLES MCCOY STAFF REPORTER OF THE
WALL STREET JOURNAL

NOME ALASKA AT LAST COUNT RUBLES WERE TRADING AT 10000 TO THE DOLLAR
ON MOSCOW'S BLACK MARKET HERE IN THIS FROZEN OUTPOST YOU CAN'T GIVE THEM
AWAY

AT THE BOARD OF TRADE BAR RUBLES SERVE AS BEER COASTERS DOWN THE STREET AT
MARUSKIYA'S STORE OWNER MARTY JAMES POINTS TO SHOE BOXES OF RUBLES AND
MUTTERS ABOUT THE POUNDING I TOOK ON THAT STUFF A SIGN OUTSIDE THE MUSIC
MART HAWKS TURBO GRAFX AND KOPECKS THE COMPUTER GAMES SELL THE RUSSIAN
COINS DON'T LAMENTS THE STORE'S ERNA RASMUSSEN I DON'T KNOW HOW WE'LL
EVER GET RID OF THEM FOLKS IN NOME INDEED THROUGHOUT ALASKA ARE
STARTING TO VOICE SIMILAR CONCERNS ABOUT THE RUSSIANS THEMSELVES

IN AN EXPERIMENT THAT WILL GO DOWN WAY DOWN IN THE HISTORY OF ECONOMIC
BLUNDERS NOME MERCHANTS DECIDED A FEW YEARS BACK TO RECAST THIS OLD
GOLDRUSH TOWN AS THE HUB OF RUSSOALASKAN TRADE THE SIBERIAN BORDER A
WESTWARD SEAGULL'S FLAP ACROSS THE BERING STRAIT HAD JUST BEEN OPENED AFTER
FOUR DECADES OF TRULY COLD WAR RUSSIANS WERE STREAMING INTO ALASKA THROUGH
THE SOCALLED ICE CURTAIN TO TASTE THE LONGFORBIDDEN FRUITS OF AMERICAN
LIFE MAINLY SHOPPING

FOR MANY NOME WAS THEIR FIRST STOP NOME MERCHANTS WANTED TO MAKE SURE THE
RUSSIAN BUCK STOPPED HERE SO NO MATTER THAT AT THE TIME RUBLES WEREN'T
CONVERTIBLE INTO HARD CURRENCY NOME STARTED ACCEPTING RUBLES AT THE
CHARITABLE RATE OF ONE RUBLE TO THE DOLLAR

THE COLD WAR MIGHT HAVE LEFT THE RUSSIANS NUMB BUT NOT DUMB THEY CAME IN
HORDES RUBLES FLYING OUT OF THEIR POCKETS

REALITY CAME TOO RUBLES JOINED THE WORLDCURRENCY MARKET

NOW NOME IS UP TO ITS CIVIC EYEBALLS IN RUBLES WORTHLESS RUBLES AND A
BIG CHILL HAS SETTLED OVER RUSSOALASKAN RELATIONS FOR THE RUSSIAN INVASION
HASN'T JUST INCLUDED KMARTBOUND IVANS AND ENTREPRENEURIAL IGORS IT HAS
ALSO BROUGHT LEGIONS OF FREELOADERS SAD SACKS MOBSTERS AND IF THE
RUMORS ARE TO BE BELIEVED FORMER AGENTS OF THE KGB AS WELL THEY STAY
THEY MOOCH SOME OF THEM STEAL AND SCAM THEY ALSO ARE WEARING OUT THE
WELCOME FOR THE MAJORITY OF LAWABIDING RUSSIANS WHO COME ON LEGITIMATE
BUSINESS

THE BLOOM IS OFF THE RUSSIAN ROSE OBSERVES JIM STIMPFLE NOME'S ONLY
REALESTATE AGENT THIS IS A STARTLING COMMENT FROM MR STIMPFLE WHO
DREAMED UP THE RUBLE EXCHANGE AND IS PERHAPS THE MOST VOCAL BOOSTER OF
RUSSOALASKAN RELATIONS AMONG OTHER THINGS HE IS PROMOTING AN
ALASKASIBERIA TUNNEL HE HAS PUT UP MORE THAN 30 RUSSIAN VISITORS AT HIS
HOUSE IN THE PAST TWO YEARS BUT HE CAN'T PUT UP WITH MORE I HAD TO STOP
BRINGING THEM HOME HE SAYS MY WIFE WAS GOING TO STRANGLE ME

DAVE OLSON A NOMEBASED PILOT RECALLS HOW A RUSSIAN HE HAD BARELY MET
SHOWED UP AT HIS HOUSE ALONG WITH WIFE AND TODDLER FOR A PROPOSED TWOWEEK
VISIT THEN HE DUMPED THE WIFE AND KID WITH ME AND TOOK OFF FOR
ANCHORAGE MR OLSON RECOUNTS SIX WEEKS LATER MR OLSON FINALLY GOT A
MESSAGE TO THE RUSSIAN GET BACK HERE GET YOUR FAMILY AND GET GOING YOU
WANT TO EXTEND HOSPITALITY BUT YOU WIND UP FEELING TAKEN ADVANTAGE OF HE
SAYS

THE SHEER HAPLESSNESS OF SOME RUSSIAN VISITORS IS BEGINNING TO WEAR ON MANY
ALASKANS SOMEHOW RUSSIANS ALWAYS SEEM TO END UP BROKE AND IN NEED OF
RESCUE SAYS JON GIRARD AN ELECTRICIAN WHO HAS HOUSED MANY RUSSIANS HE
CITES THE RUSSIAN SAILORS WHOSE LEAKY MOCKUP VIKING SHIPS ALMOST SANK
DURING A JOINT COMMEMORATION OF THE 200TH ANNIVERSARY OF EXPLORER VITUS
BERING'S WANDERINGS THE RUSSIANS LISTED INTO ANCHORAGE PENNILESS ALASKANS
HAD TO BAIL THEM OUT LAST YEAR A FOLKDANCE TROUPE RAN OUT OF MONEY AND
HAD TO BE RESCUED BY ANCHORAGE CHURCH GROUPS

SOME OF THESE PROBLEMS REFLECT CULTURAL DIFFERENCES FOR ONE THING THE
RUSSIAN VIEW OF HOSPITALITY IS MORE EXPANSIVE THAN THE ALASKAN VIEW IF YOU
TELL A RUSSIAN HE OUGHT TO DROP IN AND VISIT IF HE'S IN THE NEIGHBORHOOD
YOU BETTER MEAN IT ADVISES KENT LEE WOODMAN HE'LL SOON BE ON YOUR
DOORSTEP WITH FAMILY IN TOW

AND SUCH DIFFERENCES ASIDE SOME ALASKANS ALSO TAKE PAINS TO NOTE THAT THE
RUSSOALASKAN EXPERIENCE HASN'T BEEN ALL BAD WHEN FOR EXAMPLE THE CIVIC
CHOIR FROM MAGADAN A MAJOR SIBERIAN TOWN SANG GOD BLESS AMERICA AT THE
ANCHORAGE CONVENTION CENTER A FEW YEARS BACK MANY ALASKANS IN THE AUDIENCE
WERE SO TOUCHED THAT THEY WEPT ALASKANRUSSIAN MARRIAGES ARE PROLIFERATING
50 SO FAR MR WOODMAN PRESIDENT OF THE RUSSIANALASKAN FRIENDSHIP AND
TRADE CENTER SAYS THE RUSSIANS ARE WONDERFUL PEOPLE HE SHOULD KNOW HE
HAS HAD MORE THAN 60 RUSSIAN HOUSE GUESTS

STILL NO ONE MAINTAINS THERE AREN'T TROUBLING ELEMENTS ESPECIALLY THE
CROOKS WHEN THE BORDER OPENED UP IT OPENED UP FOR THE BAD GUYS AS WELL AS
THE GOOD GUYS SAYS BURDENA PASENELLI UNTIL RECENTLY THE HEAD OF THE
FEDERAL BUREAU OF INVESTIGATION'S ALASKA OFFICE SHE SAYS DETECTIVES ARE ON
THE TRAIL OF VARIOUS RUSSIAN MAFIA AND RUMORED EXKGB OPERATIVES INCLUDING
A WALRUSTUSK SMUGGLING RING THAT THEY SUSPECT IS CONTROLLED BY EXKGB MEN
THE WALRUS IS FEDERALLY PROTECTED AND ITS TUSKS CAN'T BE SOLD OR IMPORTED

THEN THERE ARE THE PETTY BUT ANNOYING CRIMINALS FOR THE THIRD CONSECUTIVE
YEAR SEVERAL TEENAGE RUSSIAN HOCKEY PLAYERS WERE NABBED FOR SHOPLIFTING
DURING ANCHORAGE'S WORLD JUNIOR HOCKEY LEAGUE TOURNAMENT IN A POSTSCRIPT
THAT GALLS MANY ALASKANS THE PLAYERS WERE BAILED OUT BY TEAM OFFICIALS
PERMITTED TO PLAY AND HUSTLED HOME BEFORE THEIR COURT DATES

ATOP THAT ARE THE BLACK MARKETEERS WHO SWING INTO ACTION EVERY WEDNESDAY
NIGHT WHEN THE WEEKLY AEROFLOT FLIGHT ARRIVES FROM MAGADAN THEY PACK THE
TERMINAL BEARING HUGE PACKAGES HOPING TO BRIBE THE FLIGHT CREW TO TAKE
STUFF BACK TO MAGADAN WHERE IT WILL BE SOLD ON THE BLACK MARKET AT HUGE
MARKUPS AEROFLOT CREWMEMBERS ARE SAID TO GET MINIMAL STATIC FROM BORDER
GUARDS

BUT ON A RECENT WEDNESDAY NIGHT THE AEROFLOT PILOT RACES TO A WAITING CAB
FENDING OFF THE THRONG COSTCO HE SHOUTS TO THE DRIVER COSTCO BEING A
BIG DISCOUNT DEPARTMENT STORE THAT HAS BECOME A SORT OF MECCA FOR RUSSIAN
VISITORS SUDDENLY THE CAB IS SURROUNDED BY SCREAMING RUSSIANS THE DRIVER
LOOKS STRICKEN THE MOB EVENTUALLY LETS THE CAB PASS AFTER THE PILOT
AGREES TO STOW AWAY MUCH OF THE HUSTLERS' CARGO IT'S LIKE THIS EVERY
WEDNESDAY OBSERVES AN AIRPORT SECURITY GUARD SOMEBODY'S GOING TO GET
TRAMPLED ONE OF THESE DAYS

JIM ROWE OWNER OF BERING AIR A COMMUTER AIRLINE FEELS LIKE HE HAS ALREADY
BEEN TRAMPLED HE MAY HAVE BEEN THE BIGGEST LOSER IN NOME'S RUBLE FIASCO
ACCUMULATING NEARLY 200000 RUBLES FERRYING RUSSIANS TO NOME NOW RUBLES
ARE WORTHLESS HERE AND RUSSIAN AUTHORITIES FOR REASONS THAT AREN'T ENTIRELY
CLEAR WON'T LET HIM SPEND THEM THERE MR ROWE FIGURES HE IS OUT THOUSANDS
OF MORE DOLLARS ON THE MANY FREE PASSAGES TO SIBERIA HE HAS GIVEN TO
PENNILESS TICKETLESS RUSSIANS WHO SHOW UP AT THE NOME AIRPORT I KNOW I
SHOULDN'T JUST GIVE SERVICE AWAY BUT WHAT ELSE CAN I DO HE ASKS

CHIMES HIS WIFE CHRIS IF WE DIDN'T FLY THEM BACK WE'D HAVE TO PUT THEM
UP SHE ROLLS HER EYES 9401240066 940124 TECHNOLOGY BRIEF ADVANCED
LOGIC RESEARCH INC COMPUTER CONCERN RETURNED TO PROFITABILTY FOR
QUARTER

ADVANCED LOGIC RESEARCH INC RETURNED TO PROFITABILITY IN ITS FISCAL FIRST
QUARTER AFTER POSTING LOSSES FOR SEVERAL QUARTERS AMID A PERSONALCOMPUTER
PRICE WAR

THE IRVINE CALIF COMPANY WHICH MAKES MICROCOMPUTER SYSTEMS SAID IT
EARNED 521000 OR FIVE CENTS A SHARE IN THE FIRST PERIOD ENDED DEC 31
COMPARED WITH A NET LOSS OF 18 MILLION OR 16 CENTS A SHARE A YEAR AGO
SALES CLIMBED 17 TO 496 MILLION FROM 425 MILLION

THE YEAREARLIER LOSS INCLUDED AN ACCOUNTINGRELATED NET CHARGE OF 900000
OR EIGHT CENTS A SHARE THE CHARGE WAS TAKEN AFTER THE COMPANY'S INITIAL
EARNINGS ANNOUNCEMENT FOR THE QUARTER

A COMPANY SPOKESMAN SAID THE COMPANY ENDED ITS LOSS STREAK BY FOCUSING ON
HIGHERMARGIN PRODUCTS AND SCALING BACK OPERATIONS

IN NASDAQ STOCK MARKET TRADING ADVANCED LOGIC RESEARCH SHARES CLOSED AT
4625 UP 50 CENTS 9401240065 940124 TECHNOLOGY BRIEF GENENTECH INC
 TANOX BIOSYSTEMS IS SUED IN PATENTINFRINGEMENT CASE

GENENTECH INC SAID IT FILED A PATENTINFRINGEMENT LAWSUIT IN HOUSTON
FEDERAL COURT AGAINST TANOX BIOSYSTEMS INC RELATED TO RESEARCH AND
DEVELOPMENT OF ANTIBODIES TO INTERRUPT ALLERGIC REACTIONS

THE SUIT FOLLOWS THE FILING OF A SIMILAR ACTION BY HOUSTONBASED TANOX IN
TEXAS STATE COURT IN HOUSTON LAST DECEMBER TANOX ALLEGES IN COURT DOCUMENTS
THAT GENENTECH APPROPRIATED ITS ANTIBODY INVENTION WHICH IT REVEALED TO
GENENTECH IN 1989 IN HOPES OF COLLABORATING UNDER A CONFIDENTIALITY
AGREEMENT

THE COMPANIES DID NOT COME TO TERMS AND TANOX CHOSE ANOTHER PARTNER TANOX
ALLEGES GENENTECH BREACHED THEIR CONFIDENTIALITY AGREEMENT

IN ITS LAWSUIT GENENTECH BASED IN SOUTH SAN FRANCISCO CALIF ALLEGES
THAT TANOX'S PRODUCT INFRINGES ON PROCESSES IT PATENTED THE COMPANY ALSO
ASSERTS THAT IT DID NOT VIOLATE THEIR CONFIDENTIALITY PACT AND THAT IT
DERIVED ITS ANTIBODY TECHNOLOGY INDEPENDENTLY OF ITS TALKS WITH TANOX
9401240064 940124 BUSINESS BRIEF AMDAHL CORP FIRM HAD LOSS IN 4TH
PERIOD AND YEAR ON PLUNGE IN SALES

AMDAHL CORP SUNNYVALE CALIF POSTED A NET LOSS OF 409 MILLION OR 36
CENTS A SHARE AS PROJECTED BY THE STRUGGLING MAKER OF MAINFRAME COMPUTERS

AMDAHL'S FOURTHQUARTER LOSS COMPARED WITH NET INCOME OF 25 MILLION OR
TWO CENTS A SHARE A YEAR EARLIER SALES PLUNGED 41 TO 4429 MILLION FROM
745 MILLION

FOR THE YEAR THE COMPANY HAD A MUCHWIDENED LOSS OF 580 MILLION OR 509
A SHARE COMPARED WITH A LOSS OF 7 MILLION OR SIX CENTS A SHARE SALES
WERE 168 BILLION OFF 33 FROM 252 BILLION

RESULTS FOR 1993 INCLUDE AFTERTAX RESTRUCTURING CHARGES OF 3943 MILLION
OR 346 A SHARE AND 1992'S RESULTS INCLUDE A CHARGE FOR LAYOFFS OF 125
MILLION OR 11 CENTS A SHARE

AMDAHL IS ATTEMPTING TO SHIFT ITS PRODUCT MIX AS COMPANIES ARE TRADING
MAINFRAMES FOR DESKTOP NETWORKS 9401240063 940124 REJECTION OF POLITICAL
REFORM MAY SIGNAL DRASTIC SHIFT IN JAPAN'S POWER STRUCTURE  
TURMOIL WHICH MAY BE LENGTHY COULD HURT ECONOMY AND US TIES  
BY JACOB M SCHLESINGER AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL
STREET JOURNAL

TOKYO JAPAN IS ENTERING A PERIOD OF POLITICAL INSTABILITY THAT COULD
HINDER POLICY MAKING WEAKEN THE ECONOMY FRUSTRATE THE US AND PLAY HAVOC
WITH TOKYO'S MARKETS

THE STUNNING REJECTION BY PARLIAMENT FRIDAY OF LEGISLATION TO REFORM THE
NATION'S POLITICAL SYSTEM WILL AGGRAVATE THE TURMOIL IN IMMEDIATE TERMS
THE REJECTION HAS WOUNDED THE FRAGILE COALITION GOVERNMENT OF PRIME MINISTER
MORIHIRO HOSOKAWA PERHAPS FATALLY BUT IN A WIDER PERSPECTIVE THE VOTE
WASN'T THE CAUSE OF THE CHAOS ONLY THE MOST VIVID SYMPTOM OF JAPAN'S
COLLAPSING POSTWAR POLITICAL ORDER

ONE EARLY EFFECT OF THE TURMOIL WAS A SHARP FALL IN TOKYO STOCK PRICES
MONDAY MORNING THE PARLIAMENTARY VOTE HAD BEEN TAKEN AFTER THE MARKET
CLOSED ON FRIDAY AND ANALYSTS SAID OVER THE WEEKEND THAT THEY EXPECTED
SHARES TO TUMBLE ON MONDAY AS INVESTORS LOWERED THEIR EXPECTATIONS FOR
JAPAN'S FUTURE AT THE CLOSE OF THE MORNING SESSION THE BENCHMARK NIKKEI
225STOCK INDEX WAS DOWN 43

THE DEFEAT IN PARLIAMENT IS AN EXAMPLE OF HOW WHEN A SYSTEM UNRAVELS IT'S
VERY HARD TO HOLD ANY OF IT TOGETHER SAID GERALD L CURTIS AN EXPERT ON
JAPANESE POLITICS AT COLUMBIA UNIVERSITY IN THE NEAR FUTURE THIS IS GOING
TO CHARACTERIZE JAPANESE POLITICS LOTS OF SURPRISES LOTS OF UNSETTLING
DEVELOPMENTS

THE OUTLOOK FOR POLITICAL UNCERTAINTY IS NEW FOR JAPAN WHICH HAS BEEN
GOVERNED BY ONE PARTY FOR NEARLY FOUR DECADES IT COULD HAMPER THE NATION IN
EVERYTHING FROM ACHIEVING BUDGET SURPLUSES TO MANAGING ECONOMIC GROWTH

ALREADY THE POLITICAL SITUATION HAS DELAYED THE TIMETABLE FOR ADDITIONAL
ECONOMICSTIMULUS MEASURES AN INCOMETAX CUT AND THE BUDGET WITH THE
POLITICAL SITUATION IN SUCH FLUX EVEN THE NATION'S POWERFUL BUREAUCRATS
WHO JAPANWATCHERS FLIPPANTLY SAY CAN RUN THE COUNTRY EVEN WHILE THE
POLITICIANS SQUABBLE SEEM UNUSUALLY ADRIFT I DON'T KNOW WHAT TO DO A
FINANCE MINISTRY OFFICIAL SAID GLUMLY AFTER THE VOTE IT WILL BE DIFFICULT
TO TALK WITH THE POLITICIANS

IT WILL BE HARROWING ALL AROUND ESPECIALLY FOR PRIME MINISTER HOSOKAWA
WHILE STILL TREMENDOUSLY POPULAR MR HOSOKAWA IS FIGHTING AN UPHILL BATTLE
TO SALVAGE HIS JOB AND THE LEGISLATION WHICH IS DESIGNED TO CURB JAPAN'S
ENDEMIC POLITICAL CORRUPTION AND OVERHAUL THE ELECTORAL SYSTEM BEFORE THE
CURRENT SESSION OF PARLIAMENT ADJOURNS SATURDAY MR HOSOKAWA COULD DECIDE
TO DISSOLVE PARLIAMENT AND CALL FOR THE NATION'S SECOND ELECTIONS IN SEVEN
MONTHS

EVEN IF MR HOSOKAWA ULTIMATELY PUSHES THROUGH REFORM AND HANGS ON TO POWER
POLITICIANS AND ANALYSTS SAID THAT THIS WEEK PROBABLY WILL END WITH DEEPER
STRAINS SUCH AS A SHUFFLING OF THE COALITION OR SPLITS IN THE TWO BIGGEST
PARTIES THOSE STRAINS REFLECT JAPAN'S DIVIDED POLITICAL WORLD A PRECARIOUS
COMBINATION OF OLD FORCES THAT ARE BROKEN BUT NOT CRUSHED AND NEW FORCES
THAT HAVEN'T FULLY MATURED

THIS IS A NECESSARY INSTABILITY SATSUKI EDA THE LEADER OF ONE OF THE
SMALL COALITION PARTIES AND A MEMBER OF MR HOSOKAWA'S CABINET SAID IN A
WEEKEND INTERVIEW THE OLD PARTIES HAVE LOST GROUND THE NEW PARTIES WERE
BORN QUITE ACCIDENTALLY AND HAVE TO CHANGE THEIR SHAPE

SUCH CONVULSIONS COULDN'T HAPPEN AT A WORSE TIME HIGHSTAKES TRADE TALKS
BETWEEN THE US AND JAPAN ARE ENTERING THEIR FINAL PHASE MR HOSOKAWA IS
SCHEDULED TO MEET PRESIDENT CLINTON IN WASHINGTON FEB 11 TO SIGN A NEW
TRADE AGREEMENT US GOVERNMENT OFFICIALS FRUSTRATED WITH THE PACE SO FAR
HAD COUNTED ON TOPLEVEL POLITICAL ATTENTION IN THE NEXT THREE WEEKS TO PUSH
THE NEGOTIATIONS ALONG

WASHINGTON HAD BEEN HOPING THAT A FAVORABLE VOTE WOULD LEAVE THE JAPANESE
GOVERNMENT FREE TO CONCENTRATE ON THE TRADE TALKS ACCORDING TO US TRADE
REPRESENTATIVE MICKEY KANTOR HOWEVER WITH JAPAN'S CABINET NOW
CONCENTRATING ON SURVIVAL THAT ISN'T LIKELY AN EARLY INDICATION OF THE
CLINTON ADMINISTRATION'S CONCERN CAME ON SUNDAY IN TOKYO WHEN VISITING
TREASURY SECRETARY LLOYD BENTSEN SAID MR HOSOKAWA OBVIOUSLY HAS HIS WORK
CUT OUT FOR HIM THE PRIME MINISTER FOR HIS PART TOLD MR BENTSEN THAT
JAPAN WANTS TO REDUCE TRADE TENSIONS WITH THE US

MR BENTSEN MET WITH MR HOSOKAWA AND FINANCE MINISTER HIROHISA FUJII ON HIS
WAY BACK FROM CHINA TO HIGHLIGHT WASHINGTON'S DISAPPOINTMENT WITH THE LACK
OF PROGRESS TOWARD SHRINKING JAPAN'S TRADE SURPLUS IN JULY THE US AND
JAPAN REACHED A SOCALLED FRAMEWORK AGREEMENT THAT INCLUDES SPECIFIC STEPS
TO OPEN JAPANESE MARKETS TO US PRODUCTS AND SERVICES JAPAN ALSO AGREED TO
STIMULATE ITS ECONOMY WHICH WOULD BOOST DEMAND FOR IMPORTS SO FAR JAPAN
HAS DONE LITTLE TO MEET ITS COMMITMENTS

ALTHOUGH MR BENTSEN RECEIVED NO SPECIFIC PROMISES HE SAID MR HOSOKAWA
TOLD HIM THAT I'M TELLING MY PEOPLE THAT WE WANT TO BRING THIS TO A
SUCCESSFUL CONCLUSION ACCORDING TO JAPAN'S KYODO NEWS SERVICE MR FUJII
SAID JAPAN IS COMMITTED TO SPURRING ITS ECONOMY SO PLEASE TRUST US

THE POLITICAL TURMOIL MEANS THAT FISCAL MEASURES TO LIFT THE JAPANESE
ECONOMY WHICH PREVIOUSLY WERE EXPECTED AS EARLY AS THIS WEEK WILL BE
DELAYED FURTHER WE HAD HOPED TO START DISCUSSING ECONOMIC MEASURES ONCE
REFORM HAD PASSED SAID KOZO YAMAMOTO A PARLIAMENT COALITION MEMBER
WORKING ON THE FISCAL PLAN THAT WILL BE DELAYED

IF THEY LEAVE THE TURMOIL AS IT IS IT'S REALLY GOING TO AGGRAVATE THE
ECONOMY FRETTED SHOICHIRO TOYODA CHAIRMAN OF TOYOTA MOTOR CORP

THE PITCHED POLITICAL BATTLE SEEMS ODD IN JAPAN A LARGELY CONSERVATIVE
NATION WITH LITTLE ETHNIC ECONOMIC OR IDEOLOGICAL DIVERSITY MOREOVER THE
POLITICAL CLASH IS LARGELY AN OBSCURE PROCEDURAL DEBATE ABOUT THE MERITS OF
REPLACING JAPAN'S UNIQUE MULTISEAT DISTRICTS WITH A COMBINATION OF
SINGLESEAT DISTRICTS AND SEATS ALLOTTED BY PROPORTIONAL REPRESENTATION

BUT SUCH TECHNICAL CHANGES STRIKE AT THE HEART OF HOW POLITICS WORKS HERE
AND WHO ULTIMATELY HOLDS POWER SUCH A SHAKEUP IS A DICEY TASK SINCE THE
INCUMBENT POLITICIANS MUST AGREE TO CHANGE THE VERY RULES THAT PUT THEM IN
OFFICE HOW WOULD YOU LIKE TO TRY TO PASS A BILL THROUGH A LEGISLATURE IN
WHICH ONETHIRD OF ITS MEMBERS WERE INSTANTLY DOOMED ASKS A SENIOR US
GOVERNMENT OFFICIAL

HOW LONG THE UNCERTAINTY WILL LAST IS ANYBODY'S GUESS OPTIMISTS SAID MR
HOSOKAWA COULD SIMPLY RESHAPE HIS COALITION THIS WEEK BY KICKING OUT THE
DISSIDENTS WHO VOTED AGAINST THE REFORM BILLS AND LURING SOME OPPOSITION
PARLIAMENT MEMBERS AND THAT A STABLE ARRAY OF NEW PARTIES COULD EMERGE IN
WEEKS OR MONTHS PESSIMISTS FEAR YEARS OF WEAK SHORTTERM PRIME MINISTERS
ATOP RAPIDLY SHIFTING COALITIONS AS A SWEEPING REALIGNMENT TAKES SHAPE

STILL THERE SEEMS NO GOING BACK SUPPORTERS OF POLITICAL REFORM INSIST THEY
ARE STEADFAST IN PUSHING THEIR AGENDA WHATEVER THE COST OPPONENTS ARE
DIVIDED THEY ARE STRONG ENOUGH TO BLOCK CHANGE BUT TOO WEAK TO TAKE POWER
AND QUASH IT

DESPITE THE COSTS THE BUSINESS COMMUNITY FOR NOW AT LEAST APPEARS
STEADFASTLY BEHIND THE REFORMERS BIG BUSINESS HELPED FORGE THE OLD STABLE
POLITICAL SYSTEM IN 1955 URGING CONSERVATIVES TO UNITE AND CONTAIN THE VERY
REAL SOCIALIST THREAT NOW MANY EXECUTIVES VIEW POLITICAL REFORM AS THE
FIRST STEP IN A CHAIN OF BUREAUCRATIC AND ECONOMIC REFORMS NECESSARY TO
REVITALIZE THE NATION'S STAGNANT ECONOMY

IF WE DO NOT DO POLITICAL REFORM WE WILL NOT BE ABLE TO DO DEREGULATION
AND SO FORTH SAID KAZUO NUKAZAWA MANAGING DIRECTOR OF KEIDANREN JAPAN'S
BIG BUSINESS LOBBY IF WE DON'T DO THAT OUR ECONOMY WILL BE SUFFOCATED BY
REGULATIONS AND POLITICAL CORRUPTION A DELAY IN ECONOMIC STIMULUS IS A
GREAT LOSS FOR THE NATION MR NUKAZAWA SAID BUT WE ARE STICKING TO OUR
POSITION

TOKYO'S POLITICAL ROLLERCOASTER RIDE STARTED LAST SUMMER WITH THE SPLIT OF
THE LIBERAL DEMOCRATIC PARTY AFTER 38 YEARS IN POWER AND THE ASCENDANCE OF
MR HOSOKAWA'S SEVENPARTY COALITION WHICH IS A CURIOUS ALLIANCE OF
CONSERVATIVE LDP DEFECTORS SOCIALISTS PROGRESSIVES AND A PARTY BACKED BY
A BUDDHIST SECT

THE NEW GOVERNMENT WAS UNIFIED MAINLY BY ITS OPPOSITION TO THE LDP AND A
COMMITMENT TO POLITICAL REFORM THE REFORM PACKAGE PASSED THE LOWER HOUSE OF
PARLIAMENT IN NOVEMBER BUT THEN STALLED FOR TWO MONTHS IN THE UPPER HOUSE
BEFORE FRIDAY'S DEFEAT

SINCE THE COALITION'S FORMATION IN AUGUST ANALYSTS WARNED IT WAS FRAGILE
BECAUSE IT DEPENDED HEAVILY ON THE UNPREDICTABLE SOCIALISTS A PARTY ONE WAG
LABELED THE ROUNDWORM IN THE BELLY OF THE LION THE REFORM BILLS WERE
DEFEATED BY A VOTE OF 118 TO 130 FRIDAY BECAUSE 17 OF 73 SOCIALISTS IN THE
UPPER CHAMBER VOTED AGAINST THEM JOINING THE LDP

THAT VOTE WAS IN ESSENCE A BATTLE BETWEEN THE OLD AND NEW POLITICAL
GUARDS WHILE THE REFORM MOVEMENT BEGAN IN RESPONSE TO POLITICAL CORRUPTION
THE REFORMERS SAID THEIR GOAL IS BROADER TO CHANGE THE WAY POLITICS IS DONE
IN JAPAN

UNDER THE OLD SYSTEM THE SOCIALISTS THRIVED AS THE PERMANENT OPPOSITION TO
THE LDP SO FOR ALL THEIR DIFFERENCES THE OLD ENEMIES ARE NOW JOINING HANDS
TO KEEP THAT STRUCTURE ALIVE ONE WEEKEND PRESS REPORT SAID THE DISSIDENT
SOCIALISTS EVEN FED THE LDP AN ADVANCE LIST OF THOSE PLANNING TO VOTE NO
WITHOUT SHARING THE INFORMATION WITH SOCIALIST PARTY LEADERS

MR HOSOKAWA WILL SPEND THIS WEEK TRYING TO COBBLE TOGETHER ENOUGH SUPPORT
TO PUSH THROUGH SOME REFORM PACKAGE BEFORE THIS SATURDAY'S FINAL
PARLIAMENTARY SESSION BUT IT WILL BE TOUGH TO CRAFT A NEW PROPOSAL THAT CAN
DRAW MAJORITY SUPPORT IN BOTH HOUSES WHILE THE LDP AND MANY SOCIALISTS ARE
UNITED IN OPPOSITION TO THE CURRENT REFORM PLAN THEY ARE DIAMETRICALLY
OPPOSED ON THE REFORMS THEY WOULD SUPPORT ANY CONCESSION MR HOSOKAWA MAKES
TO WIN LDP BACKING WILL COST HIM MORE SOCIALISTS

BESIDES IT'S NOT CLEAR THAT THE LDP LEADERSHIP WILL AGREE TO COMPROMISE
MR HOSOKAWA IS PUSHING FOR TALKS BUT AS OF SUNDAY THE LDP WAS
NONCOMMITTAL IT'S GETTING VERY COMPLICATED LDP SECRETARYGENERAL YOSHIRO
MORI SAID ON ONE OF MANY HEATED POLITICAL TALK SHOWS YESTERDAY HE SUGGESTED
THE COALITION MIGHT CONSIDER DROPPING REFORM PLANS FOR NOW AND WORK ON NEXT
YEAR'S BUDGET WHICH IS ALREADY A MONTH BEHIND SCHEDULE AS OF APRIL 1
AFTER ALL JAPAN DOES RUN OUT OF MONEY MR MORI NOTED DRYLY

IF NO REFORM PACKAGE PASSES BY SATURDAY MR HOSOKAWA COULD DISSOLVE
PARLIAMENT AND CALL NEW ELECTIONS RESIGN AND LET THE SHAKEN COALITION
CHOOSE A NEW PRIME MINISTER OR SOMEHOW TRY TO STAY IN OFFICE AND PUSH FOR
REFORMS IN THE NEXT SESSION OF PARLIAMENT WHICH STARTS NEXT MONDAY

EVEN SUCCESS THIS WEEK HOWEVER WON'T GUARANTEE POLITICAL CALM THE WHOLE
POINT OF THE REFORMS IS TO UNLEASH A POLITICAL RESTRUCTURING THE OLD PARTY
SYSTEM REFORMERS SAID REFLECTS DIVISIONS SUCH AS LIBERALISM VS SOCIALISM
THAT ARE NO LONGER RELEVANT THE CONTROVERSIAL BILLS BY CHANGING THE BASIC
ELECTORAL RULES AND REDRAWING THE ELECTORAL MAP ARE SUPPOSED TO CREATE A
NEW PARTY STRUCTURE THE JAPANESE POLITICAL PARTY SYSTEM HAS BEEN THE
REFLECTION OF THE COLD WAR SAID MR EDA THE COLD WAR ENDED

INDEED WHATEVER HAPPENS THIS WEEK ANALYSTS FORESEE NEW RIFTS IN THE TWO
PILLARS OF THE OLD STRUCTURE THE SOCIALISTS AND THE LDP SOCIALIST LEADERS
OVER THE WEEKEND WEIGHED PUNISHMENT INCLUDING POSSIBLE EXPULSION FOR THEIR
DISSENTERS

THE CURRENT FIGHT OVER POLITICAL REFORM MAY JUST BE THE FIRST EXAMPLE OF A
DEEPER SERIES OF CONFLICTS AS JAPAN TRIES TO BUILD A NEW POLITICAL
LANDSCAPE OVER THE NEXT FEW YEARS MANY ANALYSTS EXPECT A GENERAL
REALIGNMENT AND A JAPANESE POLITICAL SCENE DOMINATED BY THREE MAJOR PARTIES
A SMALLER LDP THE MODERATEPROGRESSIVE WING OF THE COALITION AND THE
CONSERVATIVE WING OF THE COALITION

YET MAJOR SYSTEMIC TRANSFORMATIONS ARE RARELY EASY OR PREDICTABLE AS
PARTIES FALL APART AND REBUILD A PROLONGED UGLY MUDFIGHT IS POSSIBLE
UNTIL THERE IS A CONSOLIDATION OF THE EXISTING PARTIES AND GROUPS YOU'LL
SEE A LOT OF IRRESPONSIBLE BEHAVIOR BY POLITICIANS WHO SEE THE OPPORTUNITY
TO BRING DOWN A GOVERNMENT OR EMBARRASS A CABINET MINISTER PREDICTS
COLUMBIA'S MR CURTIS

IN THAT ENVIRONMENT ROUTINE LEGISLATION SUCH AS A BUDGET COULD GET STALLED
FOR MONTHS THE ELITE BUREAUCRACY CAN OF COURSE CONTINUE TO MICROMANAGE
AFFAIRS BUT THE BUREAUCRATS ARE ALSO DIVIDED WITH EACH MINISTRY JEALOUSLY
PROTECTING ITS OWN INTERESTS AND IN THE END THE BUREAUCRATS NEED
POLITICAL SUPPORT

LONGER TERM THE CLINTON ADMINISTRATION THINKS THE POLITICAL REFORMS WILL BE
GOOD FOR THE US WHICH HAS LONG BEEN FRUSTRATED BY JAPAN'S CLOSED WAYS
SOCIETY IS CHANGING IT'S OPENING UP A SENIOR US GOVERNMENT OFFICIAL
SAID HOPEFULLY YESTERDAY

BUT IN THE PAST THE US FOUND STRONG LDP POLITICIANS HELPFUL IN SOLVING
TRADE DISPUTES BECAUSE THEY COULD BE PERSUADED TO FORCE DIFFICULT DECISIONS
ON THE BUREAUCRACY IN RECENT YEARS A FAVORITE US CHOICE WAS LDP
POWERBROKER ICHIRO OZAWA WHO CUT BILATERAL DEALS IN TELECOMMUNICATIONS AND
CONSTRUCTION MR OZAWA QUIT THE LDP LAST YEAR AND IS NOW MR HOSOKAWA'S
CHIEF STRATEGIST FRIDAY'S DEFEAT RAISES SERIOUS QUESTIONS ABOUT MR OZAWA'S
ABILITY TO GET THINGS DONE

IN THIS NEW UNCERTAIN WORLD IT'S NOT CLEAR ANYONE CAN

KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9401240062 940124 BUSINESS
BRIEF REPUBLIC WASTE INDUSTRIES CHARGE FOR CUTBACK TO RESULT IN LOSS
FOR 4TH PERIOD YEAR

REPUBLIC WASTE INDUSTRIES INC SAID IT EXPECTS TO TAKE A 20 MILLION TO 25
MILLION PRETAX CHARGE AGAINST EARNINGS FOR ITS FOURTH QUARTER ENDED DEC 31

THE ATLANTA WASTESERVICE COMPANY SAID THE MOVE WILL RESULT IN A LOSS FOR
BOTH THE QUARTER AND YEAR

THE COMPANY DISCLOSED ITS PLANS AFTER MARKETS CLOSED FRIDAY IN NASDAQ STOCK
MARKET TRADING REPUBLIC CLOSED AT 33125 A SHARE UP 125 CENTS

A SPOKESMAN SAID THE CHARGE STEMS LARGELY FROM REPUBLIC'S PLAN TO REDUCE THE
SIZE OF ITS HAZARDOUSWASTE DIVISION A MOVE THAT THE CONCERN SAYS SHOULD
PRODUCE SUBSTANTIAL SAVINGS IN OPERATING COSTS IN 1994 AND BEYOND

FOR THE 1992 FOURTH QUARTER REPUBLIC EARNED 19 MILLION OR SEVEN CENTS A
SHARE ON REVENUE OF 299 MILLION FOR ALL OF 1992 REPUBLIC HAD A LOSS OF
14 MILLION OR 53 CENTS A SHARE ON REVENUE OF 110 MILLION THE 1992
RESULTS INCLUDE A LOSS OF 202 MILLION FROM DISCONTINUED OPERATIONS
9401240061 940124 BUSINESS BRIEF EQUIFAX INC CONCERN EXPECTS TO
REPORT 4THPERIOD NET JUMPED 18

EQUIFAX INC ATLANTA EXPECTS TO REPORT EARNINGS PER SHARE IN THE FOURTH
QUARTER JUMPED MORE THAN 18 FROM A YEAR EARLIER CB JACK ROGERS
CHAIRMAN AND CHIEF EXECUTIVE SAID

THE COMPANY A PROVIDER OF INFORMATION FOR CONSUMER FINANCIAL TRANSACTIONS
EXPECTS TO REPORT THAT NET INCOME IN THE QUARTER ROSE ABOUT 10 ON REVENUE
GROWTH OF MORE THAN 9 IN THE 1992 FOURTH QUARTER EQUIFAX EARNED 26
MILLION OR 32 CENTS A SHARE ON REVENUE OF 3034 MILLION

FOR ALL OF 1993 WHICH MR ROGERS CHARACTERIZED AS A RECORDBREAKING YEAR
EQUIFAX EXPECTS TO REPORT PERSHARE PROFIT BEFORE UNUSUAL ITEMS JUMPED
MORE THAN 20 FROM A YEAR EARLIER ON REVENUE GROWTH OF MORE THAN 7

FOR 1992 EQUIFAX REPORTED EARNINGS OF 853 MILLION OR 104 A SHARE ON
REVENUE OF 113 BILLION MR ROGERS SAID A REORGANIZATION OF BUSINESS UNITS
INTO FOUR INDUSTRY GROUPS EARLY IN 1993 PAVED THE WAY FOR THE STRONG
RESULTS 9401240060 940124 LEISURE & ARTS BOOKSHELF DECODING OUR
ANCIENT GENETIC TEXT  BY JIM HOLT

WHEN US IMMIGRATION LEGISLATION WAS BEING FRAMED IN THE 1920S
CONGRESSIONAL COMMITTEES HEARD LEADING SCIENTISTS OF THE DAY TESTIFY THAT
GREED SLOTH DRUNKENNESS AND POVERTY WERE GENETICALLY ROOTED THE BEST WAY
TO KEEP OUR POPULATION FREE OF SUCH UNDESIRABLE TRAITS IT WAS ARGUED WAS
TO LIMIT THE ENTRY OF THE ETHNIC RACIAL AND RELIGIOUS GROUPS WHO TENDED TO
CARRY THE CULPRIT GENES THE RESULT WAS THE IMMIGRATION LAW OF 1926 WHICH
LATER MADE IT IMPOSSIBLE FOR MANY OF THE VICTIMS OF THE THIRD REICH'S MORE
ACTIVIST EUGENICS INITIATIVES TO ESCAPE TO THE US

TODAY WE ARE BETTER INFORMED ABOUT HOW GENETICS WORKS INDEED TEAMS OF
MOLECULAR BIOLOGISTS WORKING UNDER THE HUMAN GENOME PROJECT ARE NOW
CONVERGING ON A COMPREHENSIVE MAP OF THE ESTIMATED 100000 GENES THAT
CONSTITUTE THE BLUEPRINT FOR HUMANKIND YET WITH THIS HOLY GRAIL OF BIOLOGY
SEEMINGLY WITHIN REACH WE ARE HEARING SPECULATIONS THAT ARE REMINISCENT OF
THE BENIGHTED '20S MIGHT THERE NOT IT IS SUGGESTED BE A GENE FOR CRIMINAL
BEHAVIOR FOR SEXUAL PREFERENCE FOR HAPPINESS WILL OUR POWER TO MANIPULATE
DNA BRING ABOUT THE PERFECTION OF THE HUMAN OR EVEN THE TOMATO

THIS IS JUST THE SORT OF NAIVETE THAT ROBERT POLLACK DECISIVELY QUASHES IN
SIGNS OF LIFE THE LANGUAGE AND MEANINGS OF DNA HOUGHTON MIFFLIN 212
PAGES 1995 MR POLLACK A DISTINGUISHED MOLECULAR BIOLOGIST AND TEACHER
AT COLUMBIA UNIVERSITY SEES DNA NOT AS MERE MOLECULES AMENABLE TO THE
METHODS OF PHYSICS BUT AS AN ANCIENT TEXT WRITTEN OVER THE PAST THREE
BILLION YEARS BY THE HAND OF EVOLUTION

THE HUMAN GENOME PROJECT HE POINTS OUT IS ONLY THE FIRST STEP IN DIVINING
THE MEANING OF THIS TEXT WHAT THE VAST 15YEAR EFFORT WILL YIELD IS A
STRING OF THREE BILLION MOLECULAR LETTERS SPELLING OUT THE SENTENCES THAT
ARE OUR GENES UNDERSTANDING THESE SENTENCES HOWEVER MEANS LEARNING TO
FATHOM THE MYRIAD ACTIVITIES OF THE TINY MOLECULAR MACHINES PROTEINS
THAT IS WHOSE DESIGN THEY ENCODE

NOR IS THE OVERALL MEANING OF THE HUMAN GENOME OF WHICH EACH INDIVIDUAL
POSSESSES A SLIGHTLY DIFFERENT DRAFT SIMPLY A SUM OF THE MEANINGS OF THE
GENES THAT CONSTITUTE IT SUCH IS THE RICHNESS DEPTH AND AMBIGUITY OF THE
GENETIC TEXT WE CARRY IN OUR CELLS MR POLLACK PERSUASIVELY ARGUES THAT
THE TEXT'S SIGNIFICANCE WILL NEVER BE FULLY DISCLOSED SO MUCH FOR THE
FANTASY OF REDUCING COMPLEX HUMAN BEHAVIORS TO THE ACTION OF A FEW GENES

SIGNS OF LIFE IS NOT ALWAYS A BREEZE TO READ BUT MR POLLACK IS LUCID AND
LOGICAL IN ANALYZING THE SOCIAL POSSIBILITIES RAISED BY OUR NEWFOUND POWER
TO MANIPULATE THE CHEMISTRY OF HEREDITY WHICH INCLUDES EUGENIC SELECTION BY
TESTTUBE FERTILIZATION AND THE CONTROL OF HUMAN SEXUALITY THROUGH MOLECULAR
PHARMACOLOGY

ALL THESE PROCEDURES HE WRITES WILL UNDOUBTEDLY BE PROPOSED WITH GREAT
ENTHUSIASM IN THE COMING YEARS BUT ONCE THEY ARE SEEN IN THE LIGHT OF THE
HUMAN GENOME'S GLOBAL IMPENETRABILITY THESE DEAD ENDS OF AN OLD PARADIGM
WILL APPEAR AS WRONG AND AS DANGEROUS AS THE ESTABLISHMENT OF SEPARATE
CULTURE VESSELS FOR ALPHAS AND BETAS IN THE BRAVE NEW WORLD OF HUXLEY OR THE
NUMBERING OF PEOPLE BY TATTOO ON THEIR ARMS IN THE REAL WORLD OF GERMAN
CONCENTRATION CAMPS

IF ALL GOES ACCORDING TO PLAN A MAP OF THE HUMAN GENOME WILL BE ASSEMBLED
BY 2003 JUST IN TIME FOR THE 50TH ANNIVERSARY OF THE DISCOVERY OF DNA'S
ELEGANT SPIRALSTAIRCASE ARCHITECTURE ONE OF THE DUO OF SCIENTISTS AWARDED
THE NOBEL PRIZE FOR THIS EARLIER FEAT JAMES WATSON ALSO HEADED THE HUMAN
GENOME PROJECT UNTIL 1992 WHEN HE STEPPED DOWN TO PROTEST THE GOVERNMENT'S
DECISION TO PATENT SOME OF THE NEWLY DISCOVERED GENE SEQUENCES THE OTHER
LAUREATE FRANCIS CRICK HAS MOVED ON TO AN EVEN MORE AMBITIOUS QUEST WHICH
HE TELLS OF IN THE ASTONISHING HYPOTHESIS THE SCIENTIFIC SEARCH FOR THE
SOUL SCRIBNERS 317 PAGES 25

MR CRICK'S AVOWED GOAL IS TO SOLVE THE MYSTERY OF CONSCIOUSNESS IN
SCIENTIFIC TERMS HE BASES HIS APPROACH ON THE ASTONISHING BUT TO HIS
MIND QUITE PLAUSIBLE HYPOTHESIS THAT YOU YOUR JOYS AND YOUR SORROWS
YOUR MEMORIES AND YOUR AMBITIONS YOUR SENSE OF PERSONAL IDENTITY AND FREE
WILL ARE IN FACT NO MORE THAN THE BEHAVIOR OF A VAST ASSEMBLY OF NERVE
CELLS AND THEIR ASSOCIATED MOLECULES

COULD TWO THINGS SO APPARENTLY DISSIMILAR AS A THOUGHT AND NEURAL FIRING
REALLY BE IDENTICAL BRUSHING ASIDE THIS PHILOSOPHICAL QUESTION WITH THE
INSOUCIANCE OF A GREAT SCIENTIST MR CRICK INSTEAD TAKES THE READER ON AN
ABSORBING TOUR OF THE EXPERIMENTAL EFFORTS AIMED AT DISCOVERING HOW BRAIN
PROCESSES GIVE RISE TO OUR VISUAL CONSCIOUSNESS IN A SOMEWHAT PLAYFUL
SPIRIT HE PURPORTS TO LOCATE THE SEAT OF OUR FREE WILL IN A LITTLE
STRUCTURE CALLED THE ANTERIOR CINGULATE SULCUS

NEAR THE END OF THE ASTONISHING HYPOTHESIS THE ALWAYS GENIAL AUTHOR
CONCEDES THAT THERE MAY BE ASPECTS OF CONSCIOUSNESS THAT LIE BEYOND THE
REACH OF SCIENCE YET SO STALWART IS HIS FAITH IN THE SCIENTIFIC METHOD THAT
HE URGES IT EVEN ON THOSE WHO BELIEVE THAT THE SOUL IS SOMETHING MORE THAN
THE PURELY MATERIAL FIRING OF NEURONS IF THE MEMBERS OF A CHURCH REALLY
BELIEVE IN LIFE AFTER DEATH HE ASKS WHY DO THEY NOT CONDUCT SOUND
EXPERIMENTS TO ESTABLISH IT

SEANCES PERHAPS 9401240059 940124 INTERNATIONAL BRIEF ZENECA PLC 
DRUG CONCERN SEES INCREASE IN 2NDHALF PROFIT AND SALES

UK DRUG COMPANY ZENECA PLC SAID BUSINESS IN THE SECOND HALF OF 1993 WAS
BETTER THAN A YEAR EARLIER

IT ALSO SAID IT EXPECTS TO REPORT PROFIT FOR THE SECOND HALF AHEAD OF THE
COMPARABLE PERIOD IN 1992 ALTHOUGH SLIGHTLY LOWER THAN THE FIRST HALF OF
1993 ZENECA WHICH WAS SPUN OFF BY IMPERIAL CHEMICAL INDUSTRIES PLC AT THE
START OF 1993 SAID OVERALL DRUG SALES WERE HIGHER IN 1993 THAN IN 1992

UNCERTAINTIES IN MANY HEALTHCARE MARKETS REMAIN AND THE FAVORABLE IMPACT
OF EXCHANGE RATES HAS DECREASED SUBSTANTIALLY COMPARED WITH THE FIRST HALF
OF 1993 THE COMPANY CAUTIONED ZENECA SAID IT EXPECTS ITS AGROCHEMICALS
BUSINESS TO BREAK EVEN IN THE SECOND HALF THE DIVISION HAD A LOSS IN THE
SECOND HALF OF 1992 ONE FACTOR CONTRIBUTING TO PRESSURE ON PROFIT MARGINS
WAS THE IMPACT OF EUROPEAN UNION FARMING POLICY THE COMPANY SAID
9401240058 940124 BUSINESS BRIEF CASTLE ENERGY CORP HOLDER FILES
US COURT SUIT ALLEGING SECURITIES VIOLATION

CASTLE ENERGY CORP RADNOR PA SAID A SHAREHOLDER FILED A SUIT ALLEGING
THAT THE COMPANY VIOLATED FEDERAL SECURITY LAWS IN CONNECTION WITH ITS
RECENT PUBLIC OFFERING

THE SUIT FILED BY LESLIE SUSSER IN THE FEDERAL COURT IN CALIFORNIA CLAIMED
CASTLE ENERGY FAILED TO DISCLOSE CERTAIN INFORMATION REGARDING THE FINANCIAL
CONDITION OF ITS PRINCIPAL CUSTOMER METALLGESELLSCHAFT AG THE SUIT ALSO
CALLS FOR A TEMPORARY RESTRAINING ORDER THAT WOULD FREEZE PROCEEDS FROM THE
OIL AND GAS CONCERN'S OFFERING

CASTLE ENERGY SAID IT BELIEVES ALL MATERIAL ALLEGATIONS AGAINST IT  
ARE GROUNDLESS

METALLGESELLSCHAFT A TROUBLED METALS AND TRADING COMPANY THAT OWNS 40 OF
CASTLE ENERGY RECENTLY ANNOUNCED RESTRUCTURING TO SOLVE CERTAIN FINANCIAL
PROBLEMS AND SATISFY CREDITORS

CASTLE ENERGY SAID CERTAIN CURRENT AND FORMER OFFICERS AND DIRECTORS AS
WELL AS METALLGESELLSCHAFT WERE NAMED IN THE CALIFORNIA SUIT CASTLE ENERGY
ALSO SAID IT BELIEVED A SIMILAR SUIT WAS ALSO FILED IN FEDERAL COURT IN
PENNSYLVANIA 9401240057 940124 BUSINESS BRIEF BEI ELECTRONICS INC 
FIRM EXPECTS TO POST LOSSES FOR FIRST SECOND QUARTERS

BEI ELECTRONICS INC SAID SLOW SALES PROBABLY LED TO A LOSS OF 1 MILLION
FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 TO BE FOLLOWED BY A PROBABLE
LOSS IN THE CURRENT QUARTER BECAUSE OF LAST WEEK'S SOUTHERN CALIFORNIA
EARTHQUAKE

THE EXPECTED FIRSTQUARTER LOSS EQUAL TO ABOUT 15 CENTS A SHARE COMPARES
WITH NET INCOME OF 711000 OR 11 CENTS A SHARE A YEAR AGO THE COMPANY
INDICATED IN SAN FRANCISCO THAT SALES WERE LOWER THAN ANTICIPATED OWING TO
POOR DEMAND FOR ITS ROCKET SYSTEMS AND OTHER MILITARY PRODUCTS SALES IN THE
YEARAGO PERIOD WERE 323 MILLION

THE SECONDQUARTER RESULTS WILL BE HURT BY EARTHQUAKE DAMAGE AT THREE
COMPANY MANUFACTURING PLANTS IN SOUTHERN CALIFORNIA BEI SAID 9401240056
940124 CONTINENTAL DIVIDE CALIFORNIANS COLLIDE WITH FOLKS IN DETROIT 
OVER THE ELECTRIC CAR  BIG THREE SAY TECHNOLOGY IS LONG WAY OFF
BUT STATE DOESN'T WANT TO HEAR IT  HARKING BACK TO AIR BAGS 
 BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL

LOS ANGELES TOM HAYDEN THE LONGTIME LIBERAL ACTIVIST AND NOW A
GRAYHAIRED STATE SENATOR HAS FOUND A NEW VEHICLE FOR PROTEST AN ELECTRIC
CAR HIS CAUSE IS CLEANER AIR

UNDER THE CREAKY HOOD OF HIS DINGY WHITE FORD ESCORT STATION WAGON ARE
NOTHING BUT BATTERIES 18 OF THEM WEIGHING SEVERAL HUNDRED POUNDS THE
CONVERTED VEHICLE IS QUIET SMOGFREE AND PERFECTLY ADEQUATE FOR TOOLING
AROUND THE CITY SAYS MR HAYDEN SO AUTO COMPANIES OUGHT TO GEAR UP TO
BUILD ELECTRIC CARS FOR EVERYBODY HE SAYS

BUT NEARLY A CONTINENT AND CULTURAL LIGHTYEARS AWAY DETROIT HAS A
ONEWORD ANSWER NONSENSE SURE THE AUTO COMPANIES COULD MAKE ELECTRIC
CARS CONCEDES SAM LEONARD DIRECTOR OF AUTOEMISSION CONTROL AT GENERAL
MOTORS CORP BUT HE MAINTAINS NOBODY WOULD WANT TO BUY THEM HE COULD LEAD
A CHORUS OF THAT REFRAIN FROM ONE END OF THE AUTO INDUSTRY TO THE OTHER

AND THEREIN LIE THE ELEMENTS FOR WHAT MAY TURN INTO ONE OF THE NASTIEST
CULTURAL CLASHES OF THE 1990S BETWEEN THE MOTOR HEADS OF DETROIT AND THE
ELECTRICCAR CROWD IN CALIFORNIA FOR WHAT IS NONSENSE IN THE MOTOR CITY
LOOKS LIKE THE FUTURE TO AN UNLIKELY COALITION FORMING ON THE WEST COAST IT
CONSISTS OF ENVIRONMENTALISTS VENTURE CAPITALISTS ELECTROCHEMISTS
MECHANICAL ENGINEERS THE ELECTRICUTILITY INDUSTRY AND POLITICIANS
DESPERATE FOR A NEW JOBSGENERATING INDUSTRY THEY ALL BELIEVE THE FUTURE
SHOULD START NOW

IT'S GOING TO BE A BIG BATTLE SAYS DIANNE WITTENBERG MANAGER OF ELECTRIC
TRANSPORTATION AT SOUTHERN CALIFORNIA EDISON CO IN ROSEMEAD WHICH HAS AN
OBVIOUS INTEREST IN SELLING THE POWER THAT WOULD RECHARGE ELECTRIC CARS

EMBOLDENING THE AUTO INDUSTRY'S CRITICS IS A BELIEF BY MANY THAT DETROIT HAS
BLOWN ITS CREDIBILITY CONCERNING ITS RESPONSES TO DEMANDS FOR CHANGE
CRITICS RECALL HOW AUTO MAKERS USED TO CLAIM THAT CONSUMERS WOULD NEVER PAY
FOR CATALYTIC CONVERTERS OR AIR BAGS OR WRINKLEPROOF BUMPERS
FORTUNATELY THERE ARE ENOUGH PEOPLE WHO ARE OLD ENOUGH TO KNOW THE AUTO
INDUSTRY'S HISTORY OF DECEIT MR HAYDEN SAYS

SO IT IS THAT CALIFORNIA'S REQUIREMENT THAT CAR MAKERS SELL A CERTAIN
PERCENTAGE OF ZEROEMISSION VEHICLES MOST LIKELY ELECTRICS BY 1998 IS
THREATENING TO SPREAD CLEANAIR REGULATORS IN A DOZEN STATES FROM MAINE TO
VIRGINIA PLUS WASHINGTON DC ARE TO BEGIN DECIDING NEXT MONTH
WHETHER TO IMPOSE CALIFORNIASTYLE RULES IF ALL DO THEN HALF THE US CAR
MARKET WOULD BE COVERED BY A MANDATE EFFECTIVELY REQUIRING THAT ONE IN EVERY
10 NEW CARS SOLD AFTER THE YEAR 2002 BE ELECTRIC

UNDERSTANDABLY THIS HAS GOTTEN DETROIT'S ATTENTION THE BIG THREE HAVE
BILLIONS INVESTED IN INTERNALCOMBUSTION ENGINES THEY ARE SPENDING BILLIONS
MORE TO MAKE CONVENTIONAL CARS COMPLY WITH THE TOUGHER EMISSIONS STANDARDS
OF THE 1990 AMENDMENTS TO THE CLEAN AIR ACT AND WITH SIMILAR RULES SET BY
CALIFORNIA FOR INSTANCE CALIFORNIA ALSO WANTS CONVENTIONAL CARS TO CARRY
COMPUTERIZED DEVICES THAT TELL DRIVERS WHEN THEIR VEHICLES ARE SPEWING OUT
TOO MUCH NOXIOUS STUFF

WE'RE GOING TO GO TO MARKET WITH A SYSTEM THAT'S GOING TO LIGHT UP THE
DASHBOARD LIKE A CHRISTMAS TREE CRACKS JOHN F SMITH JR GM'S PRESIDENT
AND CHIEF EXECUTIVE OFFICER IT'S GOING TO MAKE A LOT OF PEOPLE MAD

TO TRY TO PREVENT THE ELECTRICCAR MOVEMENT FROM ESTABLISHING ITSELF IN THE
NORTHEAST THE BIG THREE HAVE BEEN PROMOTING THEIR OWN CLEANAIR PLAN ONE
THEY MAINTAIN WOULD BE MORE PALATABLE TO CONSUMERS AND EASIER FOR THE CAR
COMPANIES TO MEET AND IN CALIFORNIA A BILL HAS BEEN INTRODUCED THAT
ATTACKS THE STATE'S ZEROEMISSION MANDATE

WE'RE NOT READY DECLARES FORD MOTOR CO CHAIRMAN ALEX TROTMAN WE ARE
SIMPLY UNABLE TO PROVIDE A VEHICLE THAT PROVIDES THE RANGE THAT IS
ACCEPTABLE TO CUSTOMERS OUT IN CALIFORNIA OR ANYWHERE ELSE IN THE UNITED
STATES AT A PRICE THAT IS AFFORDABLE MR HAYDEN'S CONVERTED ESCORT
INDUSTRY EXPERTS SAY WOULD SELL FOR AT LEAST 30000 AND WOULD BE LUCKY TO
GO 100 MILES BETWEEN EIGHTHOUR CHARGES

BUT TO ELECTRICCAR PROPONENTS IN CALIFORNIA DETROIT'S MARKETING CONCERNS
AREN'T THE ISSUE RATHER IT IS WHETHER ELECTRIC CARS ARE TECHNOLOGICALLY
FEASIBLE THE CALIFORNIA AIR RESOURCES BOARD WILL HOLD A PUBLIC REVIEW OF
AUTO TECHNOLOGY LATER THIS YEAR TO HELP DETERMINE THAT BACK IN THE 1970S
WHEN CARB FOUND IN FAVOR OF EXHAUSTSCRUBBING CATALYTIC CONVERTERS FOR CARS
 DESPITE INDUSTRY PROTESTS THE TECHNOLOGY IN FACT FOLLOWED

SO LIKE CONSPIRACY THEORISTS REVIEWING GRAINY OLD NEWSREELS SOME
ELECTRICCAR ADVOCATES DETECT A DETROIT PLOT TO KILL A PROMISING NEW
TECHNOLOGY TAKE THE US ADVANCED BATTERY CONSORTIUM A BIG THREELED 260
MILLION GROUP FORMED THREE YEARS AGO TO SEARCH FOR THE MISSING LINK A
COMPACT LIGHTWEIGHT LONGLASTING QUICKCHARGING BATTERY THAT IS CAPABLE
OF MAKING ELECTRIC CARS MATCH GASOLINEPOWERED AUTOS

AS COMMERCIALDEVELOPMENT MANAGER FOR THE ELECTRIC POWER RESEARCH INSTITUTE
JACK GUY IS ALSO HUNTING FOR THAT ELUSIVE BATTERY HIS COALITION OF
UTILITIES HAS PUT MORE THAN 25 MILLION INTO BATTERY RESEARCH INCLUDING
CONTRIBUTIONS TO THE BATTERY CONSORTIUM BUT MR GUY WONDERS WHETHER THE
CONSORTIUM MIGHT HAVE DELIBERATELY SET ITSELF AN IMPOSSIBLE GOAL A
BREAKTHROUGH BATTERY IN HOPES OF SABOTAGING CALIFORNIA'S ELECTRICVEHICLE
MANDATE

IF YOU DON'T WANT ELECTRIC CARS TO HAPPEN QUICKLY SAYS MR GUY YOU
DON'T COME UP WITH A BATTERY JUST MAYBE HE ARGUES A BREAKTHROUGH BATTERY
ISN'T NECESSARY RIGHT NOW MAYBE AN IMPROVEMENT IN THE LEADACID BATTERIES
IN MR HAYDEN'S ESCORT WOULD BE GOOD ENOUGH

MR GUY'S GROUP IS INVESTING 66 MILLION IN AN AUSTIN TEXAS COMPANY THAT
IS TO START MANUFACTURING SUCH BATTERIES FOR CARS THIS YEAR THE COMPANY
ELECTROSOURCE INC MAINTAINS ITS BATTERY PACK WILL SELL FOR LESS THAN
10000 THAT IS MUCH LESS THAN THE 45000 THAT FORD SAYS IS THE COST OF
THE SODIUMSULFUR BATTERY PACK USED IN ITS PROTOTYPE ELECTRIC CARS THE
PEOPLE BEHIND THE BATTERY CONSORTIUM SAY THEY KNOW THE LIMITATIONS OF
LEADACID BATTERIES AND THEREFORE ARE CONCENTRATING ON FINDING BETTER
TYPES

THIS SORT OF STANCE BY THE AUTO INDUSTRY IS WHAT IRRITATES UTILITYINDUSTRY
EXECUTIVES BATTERY DEVELOPERS AND WALL STREET INVESTORS MANY WEST COAST
POLITICAL AND BUSINESS LEADERS ASK WHY THE BIG THREE CAN'T SEE THE IMMEDIATE
POTENTIAL TO CREATE A SILICON VALLEY FOR THE AMERICAN ELECTRICCAR INDUSTRY
PREFERABLY NOT TOO FAR FROM THE REAL SILICON VALLEY AREN'T THEY WORRIED
ABOUT LOSING ANOTHER LUCRATIVE MARKET TO THE JAPANESE OR THE EUROPEANS
THOUGH THEY HAVEN'T LEAPT INTO THE TECHNOLOGY IN A BIG WAY EITHER

ELECTRICCAR BELIEVERS SEE A NICHE MARKET OF ENVIRONMENTALLY FRIENDLY FOLKS
WHO WANT A SECOND OR THIRD CAR TO DRIVE FOR COMMUTES OF 40 MILES OR LESS
TAKE ACTOR LESLIE NIELSEN STAR OF AIRPLANE AND THE NAKED GUN WHEN HE
ISN'T DRIVING ONE OF HIS THREE GASGUZZLING BENTLEYS HE IS USUALLY TOOLING
AROUND THE HILLS OF WEST HOLLYWOOD IN AN ELECTRICPOWERED TOYOTA PASEO

IT'S JUST A LOVELY LITTLE BLACK BUG THAT ZIPS AROUND THE TRAFFIC SAYS MR
NIELSEN WHO MODELED FOR AN ELECTRICCAR AD IN THE NEIMAN MARCUS CHRISTMAS
CATALOG IT'S A GREAT SECOND CAR

OR MAYBE EVEN A FIRST CAR ACCORDING TO SOUTHERN CALIFORNIA EDISON IN A
SURVEY THE UTILITY COMMISSIONED LAST YEAR OF 1000 CALIFORNIANS 70 OF
WHOM WERE AWARE OF ELECTRIC CARS' LIMITED RANGE MORE THAN 60 EXPRESSED
AN INTEREST IN BUYING AN ELECTRIC CAR IF IT WERE AS AFFORDABLE AS REGULAR
CARS

THAT SUGGESTS IT WOULDN'T BE HARD TO FIND ENOUGH BUYERS TO MEET THE STATE
REQUIREMENT THAT 2 OF THE CARS A COMPANY SELLS IN CALIFORNIA BE
ZEROEMISSION BY 1998 TWO PERCENT OF CALIFORNIA'S TWO
MILLIONVEHICLEAYEAR MARKET IS 40000 TO PUT THAT INTO PERSPECTIVE SOME
EUROPEAN AUTO MAKERS STRUGGLE TO SELL 20000 CARS A YEAR IN THE WHOLE US
MARKET THERE ARE ABOUT 3000 ELECTRIC CARS ON THE ROAD CURRENTLY

CLEARLY THE LEADERS OF THIS MOVEMENT FERVENTLY BELIEVE IN THE ELECTRIC
DREAM AT AN ELECTRICVEHICLE CONFERENCE LAST FALL IN PHOENIX BILL
STEPHENSON AN EXECUTIVE FOR ARIZONA PUBLIC SERVICE CO LED AN EMOTIONAL
DEFENSE OF THE CAUSE SO CALL US UNREASONABLE MR STEPHENSON SAID IN
CHALLENGING THE BIG THREE'S CRITICISM OF CALIFORNIA'S ZEROEMISSION MANDATE
BUT WHAT WE BELIEVE ARE UNREASONABLE AND UNACCEPTABLE ARE DELAY TACTICS

REGARDLESS OF WHETHER THE CALIFORNIA MANDATE STICKS AND SPREADS A FEW WHO
ARE AT THE FOREFRONT OF ELECTRICVEHICLE DEVELOPMENT AIM TO PLOW AHEAD US
ELECTRICAR A SMALL COMPANY LOCATED IN THE LUSH VALLEYS OF QUAINT
SEBASTOPOL CALIF CONVERTS GEO PRIZMS AND CHEVY S10 PICKUP TRUCKS TO
ELECTRIC POWER TO SELL TO FEDERAL RESEARCHERS ELECTRIC UTILITIES AND THE
FEW INDIVIDUAL BUYERS LIKE MR NIELSEN

THOUGH ELECTRICAR HAS SOLD JUST 200 VEHICLES SINCE 1983 IT EXPECTS TO SELL
1150 THIS YEAR IF IT DOES IT WILL HAVE DONE SO WITH INDIRECT HELP FROM
GM WHEN GM SPIKED PLANS TO BUILD THE ELECTRIC IMPACT FOR NEXT YEAR FLEET
MANAGERS FOUND THEMSELVES IN A JAM TO MEET FEDERAL REQUIREMENTS TO BEGIN
ADDING ALTERNATIVEFUEL VEHICLES CREATING AN OPPORTUNITY FOR ELECTRICAR
MOREOVER THE POWER CONTROL SYSTEMS DIVISION OF GM'S HUGHES AIRCRAFT CORP
UNIT IN TORRANCE CALIF MAKES THE DRIVE SYSTEM FOR ELECTRICAR'S VEHICLES

ELECTRICAR CONVERTS VEHICLES BY REMOVING THEIR INTERNALCOMBUSTION ENGINES
AND REPLACING THEM WITH SHINY BRIEFCASESIZED BOXES FROM HUGHES CRAMMED
WITH ELECTRONICS THESE BOXES BECOME THE ENGINES THAT DRIVE ELECTRICAR'S
40000 VEHICLES WITH THE BATTERIES PLACED UNDER THE CAR IF THE VEHICLES
WERE MASSPRODUCED DETROITSTYLE THEIR COST COULD BE CUT IN HALF
ELECTRICAR SAYS

THAT ELECTRICCAR ADVOCATES ARGUE IS THE FLAW IN THE INDUSTRY'S ARGUMENT
THAT ELECTRIC CARS WOULDN'T BE AFFORDABLE CRUDER CONVERSIONS ALREADY SELL
FOR MUCH LESS THAN 40000 AND AS FOR WHETHER PEOPLE WILL LIKE DRIVING
THEM WELL JUST TAKE A RIDE WITH DANIEL D RIVERS THE MANAGER OF HUGHES'S
ELECTRICVEHICLE PROGRAM

WITH A HEADSNAPPING SCREECH OUT OF HIS PARKING LOT DR RIVERS PUNCHES THE
PEDAL ON AN ELECTRICAR GEO PRIZM LAUGHING AS HE BARRELS AROUND A CORNER HE
BRAGS ABOUT THE DRIVE SYSTEM'S TORQUE CURVE CLAIMING THE CAR CAN ZOOM TO 90
MILES AN HOUR IN FIRST GEAR

WE'RE TRYING TO SEE WHO CAN GET THE FIRST LEGITIMATE TRAFFIC TICKET IN
ONE SAYS DR RIVERS I THINK THE CONSUMER WILL LIKE IT 9401240055
940124 BUSINESS BRIEF GRANGES INC MIM HOLDINGS SUBSIDIARY PLANS
TO SELL ITS 37 STAKE

MIM HOLDINGS LTD SAID ITS CANADIAN SUBSIDIARY PLANS TO SELL ITS 127
MILLION SHARES OF GRANGES INC REPRESENTING 37 OF TOTAL SHARES
OUTSTANDING FOR AT LEAST FOUR CANADIAN DOLLARS US305 A SHARE OR A
TOTAL OF C508 MILLION US388 MILLION

UNDER AN AGREEMENT BETWEEN THE COMPANIES AUSTRALIABASED MIM SAID
GRANGES HAS THE RIGHT FOR 30 DAYS TO FIND A PURCHASER FOR THE SHARES AT A
COMPARABLE PRICE AFTER THAT MIM WILL BE FREE TO SELL THE SHARES FOR
ABOUT THREE MONTHS GRANGES IS A TORONTO MINING CONCERN

A GRANGES SPOKESWOMAN SAID AN INDEPENDENT BOARD COMMITTEE WILL STUDY THE
MATTER AND SUGGEST A COURSE OF ACTION

IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY GRANGES CLOSED AT US3
A SHARE DOWN 125 CENTS AMID GENERAL WEAKNESS IN MINING SHARES
9401240054 940124 BUSINESS BRIEFS

GTE CORP SAID ITS FEDERALSYSTEMS DIVISION RECEIVED A 19 MILLION CONTRACT
TO DESIGN A NATIONAL MEDICARE CLAIMSPROCESSING SYSTEM FOR THE US
DEPARTMENT OF HEALTH AND HUMAN SERVICES

PNC BANK CORP PITTSBURGH COMPLETED ITS ACQUISITION OF UNITED FEDERAL
BANCORP INC IN STATE COLLEGE PA PNC WHICH HAS ABOUT 62 BILLION IN
ASSETS PAID 3250 A SHARE IN CASH OR ABOUT 166 MILLION UNITED FEDERAL
HAS ABOUT 900 MILLION IN ASSETS

RUBBERMAID INC WOOSTER OHIO SAID IT IS NO LONGER IN TALKS WITH TOTER
INC ABOUT ACQUIRING THE CLOSELY HELD MAKER OF WHEELED CARTS FOR AUTOMATED
MUNICIPAL WASTE COLLECTION TALKS BEGAN IN SEPTEMBER WHEN THE COMPANIES
ANNOUNCED A LETTER OF INTENT HAD BEEN SIGNED TOTER IS BASED IN STATESVILLE
NC

DRESSER INDUSTRIES INC DALLAS COMPLETED ITS ACQUISITION OF BAROID CORP
HOUSTON FOR 850 MILLION BOTH COMPANIES ARE ENERGYSERVICES CONCERNS

CADENCE DESIGN SYSTEMS INC SAN JOSE CALIF SAID IT WON A THREEYEAR 30
MILLION CONTRACT TO INSTALL ITS DESIGNAUTOMATION SOFTWARE AT SHARP CORP A
LEADING JAPANESE MAKER OF ELECTRONIC EQUIPMENT SHARP WILL INITIALLY USE
CADENCE'S SYSTEMS IN THE DESIGN OF INTEGRATED CIRCUITS AND EXPECTS TO CUT
DESIGN CYCLES BY A FACTOR OF TEN CADENCE SAID 9401240053 940124 BUSINESS
BRIEF REYNOLDS & REYNOLDS CO DOUBLEDIGIT GAINS ARE SEEN IN '94
SALES OPERATING PROFIT

REYNOLDS & REYNOLDS CO CITING A STRONG PRODUCT LINEUP AND AGGRESSIVE SALES
EFFORTS PROJECTED DOUBLEDIGIT PERCENTAGE SALES AND OPERATING EARNINGS
GAINS FOR THE YEAR ENDING SEPT 30

IN FISCAL 1993 REYNOLDS & REYNOLDS EARNED 525 MILLION OR 240 A SHARE
BEFORE ACCOUNTING CHARGES AFTER THE CHARGES REYNOLDS & REYNOLDS EARNED
334 MILLION OR 153 A SHARE SALES IN FISCAL 1993 TOTALED 6966
MILLION

AND THE DAYTON OHIO COMPANY SAID IT EXPECTS TO ACHIEVE A RETURN ON EQUITY
OF AROUND 20 IN THE CURRENT YEAR COMPARED WITH 202 IN FISCAL 1993 BEFORE
THE ACCOUNTING CHARGES

A SPOKESMAN SAID THE COMPANY IS EXPERIENCING STRONG SALES IN SEVERAL PRODUCT
LINES INCLUDING ITS ERA COMPUTER SYSTEM FOR AUTOMOBILE DEALERS

REYNOLDS & REYNOLDS IS A SUPPLIER OF INFORMATION PROCESSING SYSTEMS
INCLUDING BUSINESS FORMS AND COMPUTER SYSTEMS TO AUTOMOTIVE PROFESSIONAL
MEDICAL AND GENERAL BUSINESS MARKETS 9401240052 940124 NEW STOCK LISTINGS

NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SIX NEW LISTINGS
INCLUDING FOUR INITIAL PUBLIC OFFERINGS

THE BIG BOARD ALSO BEGAN TRADING QUANTUM RESTAURANT GROUP INC ROSLYN
HEIGHTS NY A RESTAURANT OPERATOR PREVIOUSLY TRADED OVER THE COUNTER AND
ROWE FURNITURE CORP SALEM VA A FURNITURE MAKER UNDER ROW WHICH
PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE 9401240051 940124
LEISURE & ARTS MEN WITH HATS VS JFK  BY JERRY E BISHOP

NEW YORK I HAVE A 135 HAT A STETSON XXXX BEAVER SILVER BELLY
RANCHER THERE'S A HOLE BURNED IN THE FRONT OF THE CROWN AND IF IT IS
ANYBODY'S FAULT IT'S JOHN F KENNEDY'S

OUR 35TH PRESIDENT YOU MIGHT RECALL DIDN'T WEAR A HAT AFTER HIS
INAUGURATION IN 1961 THEREUPON 98 OF AMERICAN MEN TOOK THEIR CUE AND
DOFFED THEIR HATS GIVING UP ONE OF THE MOST PRACTICAL ITEMS OF MALE
ADORNMENT EVER TO COME DOWN THROUGH THE CENTURIES NO PRESIDENT SINCE THEN
EXCEPT POSSIBLY LYNDON JOHNSON HAS WORN A HAT

A HAT KEEPS THE SUN OUT OF THE EYES AND THE RAIN OFF THE SCALP THE STRAW
HAT KEEPS THE HEAD COOL IN THE SUMMER AND THE FELT HAT KEEPS IT WARM IN THE
WINTER IT CAN BE TIPPED IN RESPECT OR TOSSED IN THE AIR IN ECSTASY IN
EMERGENCIES IT CAN BE USED TO FAN A SPARK INTO A FLAME OR LIFT A DRINK OF
WATER OUT OF A STREAM FOR YOU OR YOUR HORSE NONE OF THESE ATTRIBUTES CAN
BE CLAIMED BY BASEBALL CAPS MOTORCYCLE HELMETS OR THOSE LITTLE WOOL HEAD
COVERINGS THAT CAN BE WADDED UP AND STUFFED IN A COAT POCKET AND THEREFORE
DO NOT QUALIFY AS TRUE HATS

THE KENNEDYINSPIRED WHOLESALE ABANDONMENT OF THE HAT THREE DECADES AGO HAS
WROUGHT HARDSHIPS ON THOSE FEW OF US WHO HAVE PERSISTED IN WEARING A HAT

TAKE THE PROBLEM OF GOING TO THE MOVIES BEFORE 1961 ALMOST EVERY THEATER
DOWN TO THE LOCAL MOVIE HOUSE HAD A USHAPED WIRE RACK WELDED TO THE
UNDERSIDE OF AT LEAST EVERY OTHER SEAT THE HAT WEARER SIMPLY TURNED HIS HAT
UPSIDE DOWN AND SLIPPED IT INTO THE RACK SO THAT IT HUNG BY THE BRIM OUT OF
MIND AND OUT OF THE WAY

TODAY NOT A SINGLE SEAT IN ANY THEATER IN THESE UNITED STATES RETAINS SUCH
A RACK OBVIOUSLY A HAT CANNOT BE WORN IN A THEATER WITHOUT RISKING
PHYSICAL VIOLENCE FROM THOSE IN THE NEXT ROW BACK SO THE HAT HAS TO BE LAID
ON THE ADJACENT SEAT AND THE OWNER MUST BE READY AT ANY MOMENT TO JERK IT
OUT OF THE WAY SHOULD A LATECOMER WISH TO OCCUPY THAT SEAT THE HAT CAN BE
LAID ON THE FLOOR UNDERNEATH THE SEAT BUT CHANCES ARE IT WILL BE STAINED BY
PUDDLES OF SPILLED SODA AND SPRINKLINGS OF POPCORN OTHERWISE THE HAT OWNER
MUST SIT THROUGH THE WHOLE EVENING HOLDING HIS LEGS CLOSE ENOUGH TOGETHER TO
KEEP THE HAT FROM SLIPPING TO THE FLOOR

EVEN THE LEGITIMATE THEATERS OF BROADWAY WHICH ONCE ACCOMMODATED ALL KINDS
OF HATS INCLUDING SILK ONES HAVE REMOVED THE WIRE RACKS FROM THE SEATS

CHECK THE HAT HA THEATERS RESTAURANTS AND NIGHTCLUBS USED TO HAVE
HATCHECK GIRLS WHO KNEW EXACTLY HOW TO HANDLE A HAT DOWN TO BRUSHING IT OFF
BEFORE RETURNING IT TO THE CUSTOMER NO SUCH EMPLOYEE EXISTS TODAY

SOME THEATERS AND RESTAURANTS HAVE A RELIC CALLED A COATCHECK PERSON BUT
HAND ONE OF THESE PERSONS A HAT AND YOU'LL GET A LOOK OF PUZZLEMENT IN
RETURN IT CAN'T BE PUT ON A COAT HANGER AFTER A MOMENT THE CHECKER'S
WANDERING GAZE NOTICES A SHELF ABOVE THE COAT RACK AND ENLIGHTENMENT DAWNS
SOME OLD TELEPHONE DIRECTORIES ARE PUSHED ASIDE AND THE HAT IS LAID ON THE
SHELFBRIM DOWN

NOW IN THE OLD DAYS IF THERE WERE NO HOOKS ON WHICH TO HANG HATS AN
EXPERIENCED HATCHECK GIRL KNEW NEVER TO LAY A HAT ON ITS BRIM SINCE THIS
WOULD RISK GETTING THE HIGHLY VISIBLE UNDERSIDE OF THE BRIM DIRTY SHE WOULD
LAY IT UPSIDE DOWN SO THAT SHOULD THE SHELF BE DUSTY THERE WOULD BE ONLY A
THIN BARELY NOTICEABLE LINE OF DUST AROUND THE TOP OF THE CROWN WHICH
COULD BE QUICKLY BRUSHED OFF

TO HAND A HAT TO A RESTAURANT COAT CHECKER TODAY RISKS INCURRING A 25
CLEANING BILL PROVIDED ONE CAN FIND A DRY CLEANER WHO CAN STILL CLEAN AND
BLOCK A HAT THERE ARE ONLY THREE LEFT IN ALL OF MANHATTAN

ANYONE WALKING INTO A CAFE OR A HONKYTONK IN THE SOUTHWEST THESE DAYS WILL
SEE AN ACRE OF HATS BOBBING OVER A BOWL OF CHILI OR CIRCLING AROUND IN A
TEXAS TWOSTEP THIS ISN'T A FLOUTING OF THE ETIQUETTE OF THE OLD WEST JOHN
WAYNE WOULD NEVER WEAR HIS HAT AT THE TABLE OR WHILE DANCING WITH THE SCHOOL
MARM IT'S JUST THAT THESE ERSTWHILE COWPOKES HAVE NO PLACE TO HANG THEIR
HATS EXCEPT ON THEIR HEADS EVEN IN TEXAS

AND THEREIN LIES THE EXPLANATION FOR THE HOLE BURNED IN MY STETSON XXXX
SILVER BELLY THIS HAT IF YOU'RE WONDERING IS A KIND OF MODERN
HIGHERCROWN VERSION OF THE HAT GARY COOPER WORE IN HIGH NOON EXCEPT IT'S
A SILVERBELLY GRAY INSTEAD OF THE BLACK THAT COOPER WORE EVEN THOUGH HE WAS
THE GOOD GUY

EACH WEDNESDAY MY FRIEND BEN PATRUSKY AND I HAVE LUNCH IN A LOWER
MANHATTAN SALOON IT HAS THE COMFORTABLE FEEL OF ONE OF THOSE OLD NEW YORK
BARS LEFT OVER FROM THE LAST CENTURY AND THE FOOD IS EXCELLENT AND
INEXPENSIVE BUT UNLIKE THE SALOONS OF THE LAST CENTURY THERE IS NO PLACE
TO PUT A HAT THERE IS NO COATCHECK PERSON MUCH LESS A HATCHECK GIRL AND
THE HOOKS ON THE WALL ON WHICH CUSTOMERS HANG THEIR COATS ARE TOO SHORT TO
HOLD A TRUE HAT

THERE IS HOWEVER A LITTLENOTICED CLOSET WHERE THE WAITRESSES HANG THEIR
COATS IT REMAINS SHUT UNTIL EARLY EVENING WHEN THE SHIFT CHANGES THE HOOKS
THEREIN ALSO ARE TOO SHORT TO TAKE A HAT BUT THERE IS A RARELY USED BALD
LIGHT BULB THAT STICKS OUT PERPENDICULAR TO THE WALL THE BULB ACCOMMODATES
A STETSON XXXX BEAVER SILVER BELLY RANCHER PERFECTLY AND HAD DONE SO
EVERY WEDNESDAY FOR MORE THAN THREE YEARS UNTIL THE OTHER DAY DURING THE
LUNCH HOUR SOMEONE WHO OBVIOUSLY WAS BORN AFTER 1961 AND THOUGHT MY HAT
WAS SOME KIND OF NEW LAMPSHADE TURNED THE BULB ON AND LEFT IT ON

I'M THINKING ABOUT SENDING THE BILL FOR A NEW HAT TO TEDDY KENNEDY

MR BISHOP COVERS SCIENCE TECHNOLOGY AND MEDICINE FOR THE JOURNAL
9401240050 940124 BUSINESS BRIEF NISSAN MOTOR CO COMPANY IS TO HALT
OUTPUT OF SOME CARS BY FUJI HEAVY

NISSAN MOTOR CO SAID IT WILL END PRODUCTION OF SOME OF ITS COMPACT CARS BY
FUJI HEAVY INDUSTRIES LTD CUTTING A KEY LIFELINE TO THE SMALL JAPANESE
AUTO MAKER

FUJI HEAVY THE MAKER OF SUBARU CARS AND A 42OWNED AFFILIATE OF NISSAN
HAS BEEN PRODUCING 60000 PULSAR COMPACT CARS ANNUALLY FOR NISSAN SINCE
1991 A NISSAN SPOKESMAN SAID THE TWO COMPANIES WILL STOP THE ARRANGEMENT
WHEN THE ORIGINAL CONTRACT EXPIRES EARLY NEXT YEAR

THE SUPPLY DEAL HAS BEEN IMPORTANT TO FUJI HEAVY WHICH EXPECTS TO POST A 29
BILLION YEN 260 MILLION PRETAX LOSS FOR FISCAL 1994 ENDING MARCH 31
PULSAR PRODUCTION ACCOUNTS FOR ABOUT 10 OF THE CARS FUJI HEAVY MAKES AND
PULSAR SALES ACCOUNT FOR 8 OF FUJI HEAVY'S REVENUE PULSARS ARE SOLD IN
JAPAN AND IN EUROPE

CANCELING THE DEAL MAKES SENSE FOR NISSAN BECAUSE IT WILL ALLOW JAPAN'S
AILING NO 2 AUTO MAKER TO MAKE BETTER USE OF ITS IDLE DOMESTIC FACTORIES
NISSAN'S VEHICLE OUTPUT IN JAPAN PLUNGED 145 IN CALENDAR 1993 AND THE
COMPANY EXPECTS TO POST A 40 BILLION YEN OPERATING LOSS FOR FISCAL 1994
ENDING MARCH 31 9401240049 940124 WHO'S NEWS REYNOLDS METALS TAPS 
TWO OFFICIALS FOR POSTS

RICHMOND VA REYNOLDS METALS CO NAMED JEREMIAH J SHEEHAN 55 YEARS
OLD PRESIDENT AND CHIEF OPERATING OFFICER THE ALUMINUM CONCERN ALSO NAMED
RANDOLPH N REYNOLDS 52 A VICE CHAIRMAN

THE MOVES WERE DESIGNED TO SUPPORT OUR STRATEGIC GOALS AND PROVIDE FOR
STRONG FUTURE SUCCESSION CHAIRMAN AND CHIEF EXECUTIVE RICHARD G HOLDER
SAID IN A STATEMENT ASKED ABOUT WHETHER THE MOVE INDICATED MR REYNOLDS
WOULD BE HEIR APPARENT TO THE CHAIRMAN'S POST AND MR SHEEHAN TO THE CHIEF
EXECUTIVE'S POST A COMPANY SPOKESMAN REPLIED IT IS PREMATURE TO MAKE ANY
ASSUMPTIONS RIGHT NOW

MR SHEEHAN PREVIOUSLY AN EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR
FABRICATED PRODUCTS ASSUMES A POST THAT HAS BEEN VACANT SINCE APRIL 1992
WHEN MR HOLDER NOW 62 WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR
SHEEHAN ALSO WAS NAMED A DIRECTOR INCREASING THE BOARD TO 15 MEMBERS

MR SHEEHAN'S EXPERIENCE AND LEADERSHIP WILL BE CRITICAL TO OUR GROWTH IN
VALUEADDED PRODUCTS AND MR REYNOLDS TO OUR GOAL OF GLOBAL EXPANSION MR
HOLDER SAID

MR REYNOLDS GRANDSON OF THE COMPANY'S FOUNDER AND A PREVIOUS BOARD MEMBER
WILL SHARE THE VICE CHAIRMAN'S TITLE WITH YALE M BRANDT 63 MR REYNOLDS
WAS EXECUTIVE VICE PRESIDENT OF INTERNATIONAL HE AND MR SHEEHAN WERE AMONG
FIVE EXECUTIVE VICE PRESIDENTS 9401240048 940124 REVIEW & OUTLOOK
EDITORIAL NORTH KOREA'S NUCLEAR CLOUD

NORTH KOREA MAY BE THE MOST VEXING PLACE ON EARTH RIGHT NOW WHILE IT
OBSERVES THE DIPLOMATIC FORMS PUNCTILIOUSLY AT A FUNDAMENTAL LEVEL IT JUST
DOESN'T OPERATE LIKE THE REST OF US NORTH KOREA'S WEIRDNESS WOULDN'T MATTER
SO MUCH IF IT WERE SOME HARMLESS BACKWATER IT IS NOT IT IS NOW PLAYING
CHICKEN WITH ITS NUCLEAR PROGRAM REFUSING TO ALLOW INSPECTIONS TO WHICH IT
IS SUBJECT UNDER THE NUCLEAR NONPROLIFERATION TREATY

DESPITE RECENT TALK OF PROGRESS ON INSPECTIONS NORTH KOREA ON FRIDAY
DENOUNCED THE INTERNATIONAL ATOMIC ENERGY AGENCY'S ABSURD ASSERTION THAT
THE KOREANS WERE MAKING SERIOUS INSPECTIONS IMPOSSIBLE ALL THE NORTH
KOREANS HAD DONE WAS TELL THE AGENCY THAT REGULAR INSPECTIONS OF ITS
CIVILIAN SITES WOULD BE FORBIDDEN AND A LOOK AT TWO UNDECLARED SITES WAS OUT
OF THE QUESTION MEANWHILE PRESIDENT CLINTON WAS TELLING CNN LAST WEEK IT'S
CLEAR THE NORTH KOREANS ARE TRYING TO DEVELOP THE BOMB

MR CLINTON'S REACTION TO THIS IS THAT THE US WILL CONTINUE TO WORK VERY
HARD AND TO BE VERY FIRM ABOUT NOT WANTING KOREA TO JOIN THE FAMILY OF
NUCLEAR STATES WE'RE NOT REASSURED

IT NOW MUST BE CLEAR TO THE MOST CAUTIOUS OF COMPROMISERS THAT THE USUAL
COMBINATION OF CARROTS AND STICKS OR IN THE CASE OF THE NEGOTIATIONS WITH
THE US CARROTS AND CARROTS SIMPLY HASN'T WORKED THE CIA THINKS THAT
PYONGYANG ALREADY HAS A BOMB OR TWO IN NOVEMBER PRESIDENT CLINTON FLATLY
SAID THE US COULD NOT ALLOW THIS AND IN THE TREMENDOUS EFFORT TO GET
INSPECTIONS OF SOME KIND WE DIDN'T HEAR MUCH ABOUT WHAT THE CONSEQUENCES
WOULD BE IF SOMETHING TRULY BAD WAS FOUND

THE US SIDE HAS OFFERED LOTS OF BLANDISHMENTS CANCELLATION OF ANNUAL
MILITARY EXERCISES HIGHLEVEL TALKS AND THE POSSIBILITY OF AID AND
DIPLOMATIC RELATIONS THAT NORTH KOREA WOULD LIKE TO HAVE ALL THESE
CARROTS HAVE NOT APPEARED TO DIM PYONGYANG'S DETERMINATION TO DO WHATEVER IT
IS DOING THE ASSUMPTION MUST THEREFORE BE THAT NORTH KOREA IS DETERMINED TO
HAVE ITS BOMB

WOULD PYONGYANG USE IT MAYBE NOT THAT IS THE ONE THING THAT COULD PROVOKE
RETALIATION BUT THERE ARE SOME TROUBLING SIGNS TO CONSIDER

JANE'S DEFENSE WEEKLY HAS REPORTED ON THE DEVELOPMENT OF THE NODONG1
SHORTTOINTERMEDIATERANGE BALLISTIC MISSILE AND RUSSIA THROUGH A
JAPANESE COMPANY HAS JUST SOLD 40 ATTACK SUBMARINES TO PYONGYANG THESE
SUBS ALL ANCIENT BY NAVAL STANDARDS WERE SUPPOSEDLY SOLD FOR SCRAP METAL
BUT WE THINK SKEPTICISM IS THE BETTER PART OF DIPLOMACY HERE AFTER ALL
GIVEN THE STATE OF NORTH KOREAN INDUSTRY IT WOULD BE CHEAPER TO STRIP A FEW
DISUSED LOCAL PLANTS FOR SCRAP INSTEAD OF SPENDING PRECIOUS HARD CURRENCY ON
OLD SUBS

THERE HAS ALSO BEEN MUCH TALK IN THE OFFICIAL PRESS OF REUNIFICATION IN
1995 A PYONGYANG TIMES EDITORIAL LAST WEEK NOTED WITH A SENSE OF URGENCY
IT IS OUR NATION'S SUPREME TASK TO REUNIFY THE COUNTRY IN THE '90S AND HAND
DOWN A REUNIFIED COUNTRY TO GENERATIONS TO COME

AND IN DECEMBER A COMMUNIQUE AFTER THE CENTRAL COMMITTEE PLENUM SAID THAT
THE ECONOMY WAS ROTTEN BLAMING WESTERN AGGRESSION FOR THE SITUATION WE
COULD NOT BUT TAKE RESOLUTE SELFDEFENSE MEASURES THE COMMUNIQUE NOTED
PUTTING THE WHOLE COUNTRY THE ENTIRE PEOPLE AND THE WHOLE ARMY IN A
SEMIWAR STATE

THAT MAY BE RHETORICAL EXAGGERATION BUT NORTH KOREA IS STILL THE WORLD'S
MOST INTENSELY MILITARIZED COUNTRY WITH THE LEAST PREDICTABLE LEADERSHIP
SUCH PRONOUNCEMENTS BEAR WATCHING

UNDER THESE CIRCUMSTANCES ONE HAS TO QUESTION PRESIDENT CLINTON'S REFLEX IN
OFFERING MORE AND MORE CONCESSIONS TO ENTICE GOOD OR AT LEAST NOT AWFUL
BEHAVIOR FROM THE REGIME THE LESSON THAT KIM ILSUNG AND IRAQ AND IRAN AND
LIBYA COULD EASILY DRAW IS THAT BAD BEHAVIOR PAYS

FOR ALL THESE REASONS WE THINK IT'S TIME TO BRANDISH THE STICK YES WE
KNOW CHINA IS NOT KEEN TO BE TOO TOUGH ON ITS SOCIALIST NEIGHBOR AND WE KNOW
JAPAN DOESN'T WANT TO STOP THE FLOW OF FUNDS TO NORTH KOREA AND WE KNOW THE
UN CAN'T BE EXPECTED TO DO MUCH STILL AT SOME POINT SERIOUSNESS AND
CREDIBILITY DEMAND THAT PYONGYANG BEGIN TO INCUR A COST FOR ITS ACTIONS
9401240047 940124 INTERNATIONAL WORLD WIRE  COMPILED BY
KRISHNAN M ANANTHARAMAN

THREE TOP BELGIAN POLITICIANS DUBBED THE THREE GUYS BECAUSE THEY ALL HAVE
THE SAME FIRST NAME RESIGNED FRIDAY AMID A BRIBERY SCANDAL THAT HAS SHAKEN
THE CENTERLEFT COALITION GOVERNMENT

THE THREE SENIOR SOCIALISTS ARE WANTED FOR QUESTIONING BY THE EXAMINING
MAGISTRATE IN THE AFFAIR

DEPUTY PRIME MINISTER GUY COEME'S OWN SOCIALIST PARTY IS AT THE CENTER OF
THE SCANDAL IN WHICH BRIBES ALLEGEDLY WERE PAID BY AN ITALIAN COMPANY
AGUSTA TO SECURE A HELICOPTER CONTRACT IN 1988 MR COEME'S RESIGNATION
COULD EASE PRESSURE ON THE COALITION AN UNEASY MIX OF SOCIALIST AND
CHRISTIAN DEMOCRAT PARTIES

THE PRESIDENT OF THE REGIONAL WALLOON GOVERNMENT AND FORMER SOCIALIST PARTY
CHIEF GUY SPITAELS AND ONE OF HIS MINISTERS GUY MATHOT ALSO RESIGNED
ALL HAVE STRONGLY DENIED WRONGDOING IN THE AFFAIR

HONG KONG LEGISLATORS VOTED IN FAVOR OF 216 MILLION IN INTERIM FINANCING
FOR THE COLONY'S NEW AIRPORT DEFYING CHINESE WARNINGS AGAINST DECIDING
FUNDING ISSUES ALONE THE VOTE FOLLOWED DISCLOSURES THAT LAWMAKERS HAD
OFFERED TO INJECT EXTRA GOVERNMENT FUNDS AS PART OF AN OVERALL AIRPORT
FINANCING PROPOSAL TO CHINA THE 202 BILLION PROJECT IS A MAJOR BONE OF
CONTENTION BETWEEN BRITAIN AND CHINA WHICH REGAINS CONTROL OF THE COLONY IN
1997 BEIJING FEARS THAT THE PROJECT WHICH IS NEEDED TO REPLACE THE
OVERBURDENED KAI TAK AIRPORT WILL SADDLE THE COLONY WITH DEBTS AFTER 1997
AND ARGUED THAT BRITAIN AND CHINA SHOULD REACH OVERALL AGREEMENT ON
FINANCING BEFORE WORK PROCEEDS

FRANCE'S CONSERVATIVE SENATE PASSED STRICT LIMITS ON ARTIFICIAL
FERTILIZATION AND GENETIC ENGINEERING AMID CONCERN OVER POSSIBLE ABUSE OF
RAPID ADVANCES IN ARTIFICIAL FERTILIZATION TECHNIQUES THE CONCERNS AROSE
FOLLOWING THE BIRTH OF TESTTUBE TWINS TO A 59YEAROLD BRITISH WOMAN AND
REPORTS THAT A BLACK WOMAN IN ITALY RECEIVED A WHITE EMBRYO THE GOVERNMENT
ARGUED THAT FERTILIZATION OF AGING WOMEN WOULD BE HAZARDOUS TO THE MOTHER'S
HEALTH AND UNFAIR TO CHILDREN LIKELY TO BE ORPHANED EARLY IF THE LOWER
HOUSE PASSES THE BILLS ARTIFICIAL FERTILIZATION WILL BE LIMITED TO
HETEROSEXUAL AND INFERTILE COUPLES OF CHILDBEARING AGE WHO HAVE BEEN MARRIED
OR LIVING TOGETHER FOR AT LEAST TWO YEARS

ABOUT 10000 DOCTORS IN BANGLADESH GOVERNMENT HOSPITALS ENDED A NINEDAY
STRIKE THAT HOSPITAL OFFICIALS SAID COST THE LIVES OF MORE THAN 100
PATIENTS THE DOCTORS RETURNED TO WORK AFTER THE GOVERNMENT AGREED TO THEIR
DEMANDS FOR INCREASED WAGES AND JOB SECURITY IN THREE MONTHS THE BANGLADESH
MEDICAL ASSOCIATION HAD THREATENED TO SPREAD THE STOPPAGE TO PRIVATE
CLINICS WHERE IT SAYS ABOUT 5000 OF ITS MEMBERS WORK ASSOCIATION LEADERS
SAID THEY WOULD STRIKE AGAIN IF THE GOVERNMENT FAILED TO KEEP ITS PROMISE

EUROPEAN GOVERNMENTS AND COMPANIES ARE BLAMING EACH OTHER FOR COMPUTER
PROBLEMS THAT ARE DELAYING PLANS TO CREATE A FREETRAVEL ZONE IN EUROPE
ATTEMPTS TO TEAR DOWN BORDERS ARE BEING FRUSTRATED BY OBSTACLES TO SETTING
UP A BIG COMPUTER NETWORK GIVING COUNTRIES ACCESS TO ONE ANOTHER'S POLICE
AND IMMIGRATION FILES SEMA THE FRENCH COMPANY OVERSEEING THE PROJECT SAYS
GOVERNMENTS HAVE BEEN SLOW TO LINK THEIR DATA BANKS BUT A GERMAN OFFICIAL
SAYS SEMA WAS RESPONSIBLE FOR THAT LINK NINE NATIONS HAVE AGREED TO A
BORDERFREE ZONE FRANCE GERMANY BELGIUM THE NETHERLANDS LUXEMBOURG
ITALY SPAIN GREECE AND PORTUGAL

A NEW CODE OF CONDUCT FROM BRITAIN'S ARMY FORBIDS HOMOSEXUALITY AND
ADULTERY AND DISCOURAGES MARRIAGES BETWEEN OFFICERS AND LOWER RANKS THE
STANDARDS AND DISCIPLINE PAPER CALLED ADULTERY IN THE ARMED FORCES THE MOST
SERIOUS FORM OF SOCIAL MISCONDUCT THE CODE WHICH ALSO COVERS ISSUES SUCH
AS ALCOHOLISM BULLYING AND RACIAL AND SEX DISCRIMINATION DISCOURAGES
MARRIAGES ACROSS RANKS SAYING THAT SUCH RELATIONSHIPS UNDERMINE A
WELLORDERED STRUCTURE THE ARMY RESTATED ITS VIEW THAT HOMOSEXUALITY WAS
NOT ACCEPTABLE IN THE MILITARY THOSE WHO ENGAGE IN HOMOSEXUAL PRACTICES ARE
NORMALLY DISCHARGED FROM THE BRITISH ARMED FORCES

TAKING CONTROL OF A BIG STATE COMPANY IN LITHUANIA REQUIRES IDEAS MORE THAN
MONEY UNDER THE COUNTRY'S NEW BEST BUSINESS PLAN PRIVATIZATION PROGRAM

THE PROGRAM ALLOWS SAVVY MANAGERS TO ACQUIRE PROBLEM OR HIGHLY INDEBTED
FIRMS FOR LITTLE OR NO MONEY AS LONG AS THEY HAVE A CLEVER RESCUE PLAN THE
PROGRAM AIMED AT BREAKING A DEADLOCK IN THE SELLOFF OF SOME OF THE
COUNTRY'S BIGGEST AND MOST TROUBLED COMPANIES CURRENTLY IS BEING TRIED ON
SIX PILOT PROJECTS BUT AT LEAST 300 COMPANIES COULD EVENTUALLY QUALIFY

SOME POLITICIANS CRITICIZE THE PROGRAM AS A GIVEAWAY BUT WESTERN ADVISERS
IN LITHUANIA SAY THE GOVERNMENT SLOWLY IS WINNING BROAD SUPPORT FOR THE
SCHEME

THE PROGRAM IS OPEN TO FOREIGN AND DOMESTIC INVESTORS PROSPECTIVE BUYERS
MUST HAVE A BUSINESS PLAN THAT SHOWS HOW THE NEW MANAGEMENT WILL DEAL WITH
COSTS OF ACQUISITION AND RESTRUCTURING

ROMANIA'S RAILWAYS WILL LAY OFF 20000 WORKERS THIS YEAR AND MOTHBALL HALF
THEIR TRAINS AS PART OF A PLAN TO MAKE THE SYSTEM MORE VIABLE  A
MALAYSIAN BUS DRIVER WAS FIRED AFTER HE REFUSED TO CUT HIS NEARLY 6INCH
FINGERNAILS 9401240046 940124 BOBBITT A VERDICT THAT KILLS JUSTICE 
 BY HEATHER S RICHARDSON

MANY APPROVE OF FRIDAY'S DECISION BY A JURY THAT LORENA BOBBITT WAS NOT
GUILTY OF DISMEMBERING HER HUSBAND THEY ARGUE THAT THE NEWS REPRESENTS A
ROUGH KIND OF TIT FOR TAT JUSTICE YET THE BOBBITT JURY'S JUDGMENT THAT
MRS BOBBITT HAD ACTED WHILE TEMPORARILY INSANE IS A DEEPLY PROBLEMATIC
ONE THE VERDICT REFLECTS A WIDENING CULTURAL DIVIDE THAT IS SLOWLY
DELEGITIMIZING ANY TRADITIONAL SENSE OF JUSTICE IN THIS COUNTRY BY CHOOSING
TO FREE LORENA BOBBITT THE MANASSAS JURY SET A PRECEDENT THAT WILL REDEFINE
AMERICAN NOTIONS OF ACCURACY

THINK FOR A MOMENT ABOUT THE BOBBITT CASE AND ABOUT ANOTHER CASE THAT HAS
BEEN IN THE NEWS LATELY THE MENENDEZ BROTHERS' TRIAL FOR MURDERING THEIR
PARENTS ASSUME THAT IN FACT WHAT THE DEFENSE IN EACH CASE HAS ARGUED IS
TRUE THAT LORENA BOBBITT WAS INDEED THE PATHETIC VICTIM OF PHYSICAL ABUSE
HUMILIATION AND SEXUAL TORMENT THAT THE MENENDEZ BROTHERS WERE ABUSED BY
THEIR PARENTS AND SO DESERVE FREEDOM

SUCH ABUSE IS HEINOUS BUT WITH REGARD TO THE QUESTION OF GUILT THE
RESOUNDING ANSWER IN THESE CASES STILL HAS TO BE SO WHAT THIS IS NOT A
CALLOUS ANSWER OF COURSE WE SYMPATHIZE OF COURSE OTHER LEGAL AND SOCIAL
STEPS EG LEAVING HOME SUING SEEKING COURT INJUNCTIONS GETTING A
DIVORCE ARE EMINENTLY IMPORTANT THAT'S THE POINT OF A CIVIL SOCIETY THERE
ARE CIVILIZED PROCEDURES FOR DEALING WITH OUR PROBLEMS WITH EACH OTHER

LORENA BOBBITT AND HER LAWYERS HOWEVER WENT A DIFFERENT PATH THREE
PSYCHIATRISTS AND LEGAL EXPERTS TESTIFIED THAT HERS WAS NOT IRRESISTIBLE
IMPULSE BUT AN IMPULSE THAT SHE DID NOT RESIST NEVERTHELESS MS BOBBITT'S
SUPPORTERS FOUND ENOUGH MEMBERS OF THE LEGAL AND SOCIAL WORK ESTABLISHMENT
TO BUILD A CASE THE ASSOCIATED PRESS HAS REPORTED THAT A DR SUSAN FIESTER
WHO INTERVIEWED MRS BOBBITT FOR 13 HOURS DESCRIBED HER BEHAVIOR AT THE
TIME OF THE VIOLENCE AS A BRIEF REACTIVE PSYCHOSIS

THE JURY ENDED UP BUYING THAT ARGUMENT THE RESULT IS THAT THEY ALLOWED HER
TO IMPINGE ON THE RIGHTS OF OTHERS MR BOBBITT AND SANCTIONED PERSONAL
VIGILANTISM THE BOBBITT VERDICT DERIDES ALL OTHER SPOUSES MEN AND WOMEN
WHO HAVE BEEN ABUSED AS SHE WAS AND WHO NONETHELESS WENT THROUGH THE TEDIUM
AND HELL OF COURT ORDERS INSTEAD OF RESORTING TO MALICIOUS WOUNDING IT ALSO
SENDS AN ENGRAVED INVITATION TO BYPASS SUCH PROCEDURE IN FUTURE

GIVEN THAT SIGNAL IMAGINE WHAT A NOT GUILTY VERDICT FOR THE MENENDEZ
BROTHERS COULD MEAN THEIR JUDGE STANLEY WEISBERG HAS BEEN FACED WITH A
CASE THAT HAS BEEN CONVERTED FROM A TRIAL OF CONFESSED MURDERERS THE SONS
TO THE TRIAL OF THE VICTIMS MR AND MRS MENENDEZ AND THEIR PARENTING
SKILLS

WHEN DEFENSE ATTORNEY JILL LANSING ASKED THAT A PSYCHIATRIC EVALUATION OF
THE SONS' MOTHER THAT SHOWED SHE WAS DIAGNOSED AS A BORDERLINE SCHIZOID BE
ENTERED INTO EVIDENCE THE JUDGE SAID THAT THE ISSUE HERE IS HOW SHE
BEHAVED NOT HOW SHE WAS DIAGNOSED NEVERTHELESS ACCORDING TO THE LOS
ANGELES DAILY NEWS A UNIVERSITY OF WASHINGTON SOCIAL WORK PROFESSOR TOLD
THE JURY THAT THE KIND OF ABUSE THE MENENDEZ BROTHERS ALLEGE TO HAVE ENDURED
EXPLAINS ADULT BEHAVIOR AMERICAN JURIES ARE BEING TOLD THAT THE
INDIVIDUAL IS NOT RESPONSIBLE FOR HIS OWN ACTIONS

PART OF THE PROBLEM IS A GENUINE AMERICAN CONFUSION OF COMPASSION A
PERSONAL VIRTUE WITH JUSTICE WE FORGET THAT JUSTICE IS CONSIDERED THE
FOREMOST POLITICAL VIRTUE FOR A REASON IT PROVIDES THE GLUE OF SOCIETY A
SENSE OF JUSTICE IS WHAT PRECLUDES PEOPLE TAKING MATTERS INTO THEIR OWN
HANDS WHEN THAT SENSE OF JUSTICE BREAKS DOWN AS IT DID IN THE BOBBITT
TRIAL YOU INVITE SOCIAL CHAOS

WHAT THE BOBBITT TRIAL TELLS AMERICANS IS THAT WHAT MATTERS IS NO LONGER
WHAT YOU DID BUT HOW OTHERS SAY YOU MADE THEM FEEL AS LORENA BOBBITT'S
ATTORNEY SAID WE ARE NOT DISPUTING WHERE IT HAPPENED HOW IT HAPPENED WHO
DID IT THE NORMAL QUESTIONS OF GUILT OR INNOCENCE INSTEAD THE CASE
PRESENTED BECOMES FEEL SORRY FOR HER THE JERK DESERVED IT SAME WITH THE
MENENDEZ BROTHERS ROTTEN PARENTS POOR ABUSED ORPHANS

HOW DID AMERICANS COME TO CONFUSE JUSTICE AND COMPASSION AT THE ROOT OF THE
PROBLEM IS WHAT HAS BEEN CALLED THE CULTURE WAR THE TRADITIONAL VIEW SEES
PEOPLE AS NEITHER GOOD NOR BAD BUT CAPABLE OF BEING EITHER IT THEREFORE
LOOKS TO EITHER GOD OR NATURAL LAW AS THE ULTIMATE ARBITER OF WHAT IS MORAL
THIS VIEW WAS THE BASIS FOR EXAMPLE OF THE NUREMBURG TRIALS SINCE
MANMADE LAW SAID THE NAZIS HAD DONE NOTHING WRONG

THE NEW SECULAR VIEW BY CONTRAST SEES PEOPLE AS BASICALLY GOOD IT CONCLUDES
THAT WE EACH ARE OUR OWN ARBITERS OF RIGHT AND WRONG IN THIS VIEW EVIL IS
UNDERSTOOD AS A BYPRODUCT OF SOME EXTERNAL FORCE POVERTY CHILD ABUSE
GUNS OF WHICH MAN IS A VICTIM

THIS IS A VIEW THAT EXCUSES VICTIMS LIKE LORENA BOBBITT IT IS ALSO A
MINDSET THAT PUTS THE RIGHTS OF GROUPS OF VICTIMS BEFORE THOSE OF THE
GENERAL INDIVIDUAL THUS A RADICAL FEMINIST ORGANIZATION REPORTEDLY HAD NO
QUALMS ABOUT THREATENING TO DISMEMBER BOBBITTSTYLE 100 MEN AT RANDOM IF
LORENA'S JURY HANDED IN A GUILTY VERDICT

THE BRIGHT SIDE OF THE BOBBITT RESULT IS THAT THERE ARE 100 MEN WHO CAN
SLEEP SOUNDLY NIGHTS OR CAN THEY WE ARE CREATING A SOCIETY WHERE ANY
INTERACTION BETWEEN INDIVIDUALS IS FAST BECOMING AN OPENENDED LIABILITY WE
HAVE FOR TOO LONG TRAVELED ON A JUVENILE ROAD OF ABANDONING RESPONSIBILITY
OF HOLDING EVERYONE AND EVERYTHING ACCOUNTABLE BUT OURSELVES WE HAVE
FORGOTTEN THAT RESPONSIBILITY IS CENTRAL TO A FREE SOCIETY WITHOUT SUCH
UNDERSTANDING A FREE SOCIETY CANNOT BE FREE FOR LONG

MS RICHARDSON IS A DIRECTOR OF THE COUNCIL ON CULTURE & COMMUNITY AND A
FELLOW AT THE PROGRESS AND FREEDOM FOUNDATION 9401240044 940124 MANAGER'S
JOURNAL BEATING THE HONG KONG HIRING BLUES  BY DEMI LLOYD

HONG KONG THE THREE CLERICAL WORKERS SLIPPED THEIR RESIGNATION LETTERS ON
MY DESK ONE BY ONE TWO SHEEPISHLY ONE SMUGLY HARDLY TWO MONTHS AFTER
STARTING WORK THEIR ONE DAY'S NOTICE LEFT OUR OFFICE ALL BUT EMPTY AS
AMERICANS NEWLY ARRIVED IN HONG KONG DETERMINED TO SET UP A BUYING AGENCY
FOR CHRISTMAS DECORATIONS IN ASIA MY HUSBAND AND I CLEARLY HAD A LOT TO
LEARN

WHEN WE ARRIVED HERE WE THOUGHT WE KNEW HOW TO OPERATE A BUSINESS MY
HUSBAND CAME WITH EXTENSIVE MANUFACTURING ENGINEERING CONSULTING AND
EMPLOYEERELATIONS EXPERIENCE AND I HAD DEVELOPED A BUSINESS UNIT WITHIN A
MAJOR AMERICAN DIRECTSALES CORPORATION STILL WITHIN SIX MONTHS OF OUR
ARRIVAL WE EXPERIENCED A MORE THAN 100 TURNOVER IN OUR STAFF

WITH THE HONG KONG UNEMPLOYMENT RATE BELOW 2 EMPLOYERS OFTEN FIND THEY DO
NOT HAVE THE UPPER HAND HERE ARE SOME OF THE WAYS WE'VE LEARNED TO COPE

 SPARE NO EXPENSE HIRING A RELIABLE LOCAL OFFICE MANAGER YOUR OFFICE
MANAGER WILL SERVE AS YOUR CONFIDANT YOUR WHIP AND YOUR CONDUIT TO THE
STAFF LOCAL HIRES MUCH PREFER DISCUSSING PROBLEMS WITH ANOTHER LOCAL HIRE
 THE IDEA OF TAKING A PROBLEM TO THE BOSS IS PRETTY DAUNTING

OFFICE MANAGERS ALSO ALERT YOU TO LOCAL HOLIDAYS AND CUSTOMS TAKE TYPHOONS
FOR INSTANCE MY HUSBAND AND I AREN'T EXACTLY FAMILIAR WITH WHAT NEEDS TO BE
DONE WHEN A TYPHOON SIGNAL NO 8 WHEN EVERYONE IN HONG KONG RUNS FOR
COVER GOES UP WHEN TYPHOON TASHA A NO 8 HIT THE TERRITORY LAST
SUMMER OUR OFFICE MANAGER TOLD US WHAT TO DO

 GIVE YOUR OFFICE MANAGER THE TOOLS TO CONVINCE PEOPLE THAT THEY WOULD
WANT TO WORK AT YOUR COMPANY WE STILL MAKE THE FINAL DECISION ON HIRING
BUT NOW OUR OFFICE MANAGER CONDUCTS ALL PRELIMINARY INTERVIEWS IN CANTONESE
AND ENGLISH AND DOES THE BACKGROUND CHECKS

WELLBRIEFED ON THE TERRITORY'S LABOR MARKET THE OFFICE MANAGER SPEAKS
DIRECTLY TO THE THINGS THAT CONCERN PROSPECTIVE EMPLOYEES MOST MAKING MONEY
AND ADVANCING THROUGH THE COMPANY'S RANKS

 DESIGN A PACKAGE OF PERKS TO LURE THE BEST MOST EXPERIENCED EMPLOYEES
INTO YOUR FOLD WE DECIDED TO PAY SALARIES THAT RAN 10 TO 20 ABOVE MARKET
LEVELS THERE IS NO GREATER TEMPTATION HERE THAN A WELLPAYING JOB WORKERS
WILL LEAVE FOR 50 EXTRA A MONTH ALSO WE DESIGNED INCENTIVES DIRECTLY
RELATED TO PERFORMANCE THAT COULD LEAD TO TWICEYEARLY BONUSES

 CREATE A POSITIVE WORKING ENVIRONMENT ENGENDERING A FRIENDLY ATMOSPHERE
IN THE OFFICE MAKES IT HARDER FOR EMPLOYEES TO WANDER FROM THE FOLD HOST
OCCASIONAL DINNERS AND KARAOKE OUTINGS SPONSOR AN ANNUAL WEEKEND TRIP TO
MACAO CELEBRATE BIRTHDAYS WITH A CAKE AND MAYBE A LUNCH FOR THE WHOLE
GANG THIS MAKES PEOPLE WANT TO STAY AND ALSO LETS YOU GET TO KNOW YOUR
EMPLOYEES THE STUFF FROM WHICH LOYALTY IS GROWN

 NEVER DIRECTLY CRITICIZE AN EMPLOYEE OUR EMPLOYEES HAVE PROVEN OVERLY
SENSITIVE TO CRITICISM OFTEN NO MATTER HOW CONSTRUCTIVELY RELAYED WE
QUICKLY DISCOVERED THAT INDIRECTLY COMMUNICATING A PROBLEM IS PREFERABLE IF
A CERTAIN ORDER HAS BEEN REPEATEDLY MISHANDLED BY AN EMPLOYEE ASK THE
OFFICE MANAGER TO SPEAK WITH HIM ABOUT IT IF YOU DECIDE TO APPROACH THE
EMPLOYEE DIRECTLY START BY SAYING I NEED YOUR HELP IN IMPROVING THIS
SITUATION DON'T WORRY HE'LL GET YOUR MESSAGE BUT HE'LL ALSO BE
REASSURED THAT YOU THE BOSS THINK HE CAN DO THE JOB

 CONSIDER WOMEN AND YOUNGER PEOPLE OF BOTH SEXES FOR MANAGEMENT
POSITIONS WOMEN HAVE EXCELLED IN OUR OFFICE AS HAVE YOUNGER PEOPLE OUR
OFFICE MANAGER IS A 32YEAROLD WOMAN WHO BY HER OWN RECKONING WAS GIVEN
MUCH MORE RESPONSIBILITY AT HER AGE THAN WOULD HAVE BEEN POSSIBLE AT OTHER
FIRMS CREATING SUCH OPPORTUNITIES IS A GREAT WAY TO BEAT A LOOSE LABOR
MARKET

 STRIKE A BALANCE BETWEEN NOT TAKING YOURSELF TOO SERIOUSLY AND
MAINTAINING THE RESPECT OF YOUR EMPLOYEES IMPATIENCE IN ASIA IS THE WORST
OF SINS ONE OF MY FIRST LOCAL HIRES QUIT AFTER I LOST MY COOL DISCRETION
AND PATIENCE ARE THE BETTER PART OF MAINTAINING A WORKING OFFICE

MS LLOYD IS MANAGING DIRECTOR OF DD TRADERS INC 9401240043 940124 CREDIT
MARKETS POLITICS ROIL DEVELOPING NATION DEBT  BUT MANY
MANAGERS BET ON CONTINUATION OF ECONOMIC REFORM  BY THOMAS T
VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK ECONOMIC REFORMS AND HUGE RETURNS WERE THE BUZZWORDS IN THE
MARKET FOR DEVELOPINGNATION BONDS LAST YEAR BUT THIS YEAR INVESTORS WILL
BE LEARNING MORE ABOUT POLITICAL RISK

THE REBEL UPRISING IN CHIAPAS IN SOUTHERN MEXICO HAS UNNERVED INVESTORS
DRAGGING DOWN PRICES FOR DEVELOPINGNATION BONDS IN REALMS FROM LATIN
AMERICA TO AFRICA

MEXICO HAS TO WIN THE PRIZE FOR THE BESTKEPT SECRET OF THE YEAR REMARKS
LISA HESS A PORTFOLIO MANAGER AT LOEWS CORP THE DIVERSIFIED HOLDING
COMPANY THE DAY AFTER NAFTA STARTS THEY REVEAL THAT THEY HAVE A LITTLE
REVOLUTION BREWING NAFTA THE NORTH AMERICAN FREE TRADE AGREEMENT WENT
INTO EFFECT JAN 1 THE DAY OF THE CHIAPAS UPRISING

THE UPRISING HAS INVESTORS WONDERING WHAT POLITICAL LAND MINES MIGHT BE
AWAITING INVESTORS ELSEWHERE SOME OF THESE INVESTORS HAVE RESPONDED BY
SELLING THEIR HOLDINGS POLITICAL WORRIES IN VENEZUELA AND NIGERIA TWO
OTHER POPULAR NATIONS FOR BOND INVESTORS HAVE SHARPLY PUSHED DOWN BOND
PRICES THERE MEXICO'S PAR BRADY BOND IS STILL DOWN OVER A POINT FROM THE
END OF 1993 AT 8213 ACCORDING TO JP MORGAN SECURITIES INC

BRADY BONDS ARE SECURITIES ISSUED BY GOVERNMENTS AS PART OF A FOREIGNDEBT
RESTRUCTURING PROGRAM DESIGNED BY FORMER US TREASURY SECRETARY NICHOLAS
BRADY THE PAR BONDS GET THEIR NAME FROM THE FACT THAT THEY ARE MADE FROM
OLD FOREIGN DEBT THAT HAS BEEN CONVERTED AT FACE VALUE INTO THE NEW BONDS

THE PRICE OF NIGERIA'S PAR BRADY BOND HAS DROPPED NEARLY FIVE POINTS IN THE
PAST TWO WEEKS OR NEARLY 50 FOR A BOND WITH A 1000 FACE VALUE TO 5975
ACCORDING TO JP MORGAN SECURITIES THE REASON BECAUSE OF GROWING
POLITICAL INSTABILITY INVESTORS ARE CONCERNED OVER THE COUNTRY'S WILLINGESS
TO SERVICE ITS FOREIGN DEBT

VENEZUELA'S PAR BONDS HAVE DROPPED NEARLY FIVE POINTS AS WELL TO 7050 OVER
THE SAME PERIOD THANKS TO THE SUSPENSION OF THE COUNTRY'S VALUEADDED TAX
AND THE INTRODUCTION OF TEMPORARY PRICE CONTROLS INVESTORS ARE WORRIED
ABOUT THE GOVERNMENT'S ABILITY TO PAY ITS DEBT SERVICE WITHOUT THE TAX
VENEZUELA'S PRESIDENTELECT RAFAEL CALDERA ALSO REAFFIRMED HIS CAMPAIGN
PROMISE TO REMOVE THE VALUEADDED TAX ADDING TO THE BAD NEWS WAS A CRISIS AT
ONE OF VENEZUELA'S BIGGEST BANKS BANCO LATINO WHOSE ASSETS WERE FROZEN BY
THE CENTRAL BANK

AN EAGERLY ANTICIPATED 1 BILLION GLOBAL NOTE OFFERING FROM MEXICO'S BANCO
NACIONAL DE COMERCIO EXTERIOR WAS HURT BY THE POLITICAL WORRIES LAST WEEK
A GLOBAL SECURITY IS ONE THAT IS OFFERED SIMULTANEOUSLY IN ALL THE WORLD'S
MAJOR MARKETS AND IS INTENDED TO BE EASILY TRADED IN ALL THOSE MARKETS
UNLIKE A SIMILAR GLOBAL NOTE OFFERING FROM ARGENTINA IN EARLY DECEMBER THE
BANCO NACIONAL OFFERING RECEIVED A LUKEWARM RECEPTION FROM INVESTORS THE
YIELD SPREAD OF THE 10YEAR NOTES OVER COMPARABLE US TREASURY DEBT HAD TO
BE WIDENED IN ORDER TO ATTRACT DEMAND AND SHORTLY AFTER THE NOTES WERE
PRICED ON FRIDAY THEIR PRICE DROPPED ABOUT 1/4 POINT OR ABOUT 250 FOR A
BOND WITH A 1000 FACE VALUE TO 9925 THE YIELD WHICH MOVES IN THE
OPPOSITE DIRECTION OF THE PRICE ROSE TO 736 FROM 732

SHARP PRICE MOVES AREN'T NEW TO DEVELOPINGNATION BONDS BUT AFTER A LONG
RUNUP IT APPEARS THAT INVESTORS OUGHT TO BE WORRYING MORE ABOUT THEM SAYS
LOEWS'S MS HESS SHE SAYS THAT UNTIL NOW MANY OF THESE DEVELOPINGNATION
BOND MARKETS HAVE GONE ONLY IN ONE DIRECTION ANY REASONABLE INVESTORS
WOULD SEE THAT IS A WARNING SIGN

DESPITE THE UNPREDICTABILITY OF POLITICAL RISK A NUMBER OF MONEY MANAGERS
WITH BIG BETS ON DEVELOPINGNATION BONDS SAY THEY AREN'T LOSING ANY SLEEP
OVER THE SHAKY POLITICAL CLIMATE IN PLACES LIKE VENEZUELA OR NIGERIA

ONE OF THE SOUNDEST SLEEPERS IS PROBABLY NIKOS PAPPAYLIOU A PORTFOLIO
MANAGER AT GT CAPITAL MANAGEMENT OUR BELIEF IS THAT DISPARATE POLITICAL
IDEOLOGIES WHETHER IT'S MEXICO OR CALDERA IN VENEZUELA OR PRESIDENT
CARLOS MENEM IN ARGENTINA REALLY DON'T MATTER MUCH TO INVESTORS HE
SAYS THE TREND TO GLOBALIZATION WILL MARGINALIZE MUCH OF THESE POLITICAL
IDEOLOGIES HE CLAIMS WHEN DEVELOPING NATIONS WEIGH THE BENEFITS OF BEING
REINTEGRATED INTO THE WORLD ECONOMY PARTIES ON THE RIGHT AND THE LEFT OF
THE POLITICAL SPECTRUM WILL BE CONFRONTED WITH ONE CHOICE TO CONTINUE
ECONOMIC REFORMS HE EXPLAINS

MS HESS OF LOEWS DOESN'T AGREE YOU CAN BE CORRECT ABOUT BROAD ECONOMIC
TRENDS BUT BE WRONG ON SPECIFIC SECURITIES PRICES IN THE SHORTTERM SHE
SAYS THERE IS A TREMENDOUS AMOUNT OF FOCUS THESE DAYS ON MISSED
OPPORTUNITIES AND INSUFFICIENT RETURNS AND NOT ENOUGH FOCUS ON POLITICAL
AND OTHER RISKS

MS HESS WAS QUOTED LATE LAST YEAR IN THE TRADE PUBLICATION GRANT'S INTEREST
RATE OBSERVER ON THE EXPERIENCE OF A COLLEAGUE AT LOEWS WITH MEXICAN PAR
BONDS WE HAD A SAD EXPERIENCE IN MEXICAN PAR BONDS THE MOST LIQUID PART
OF THE EMERGINGMARKETS DEBT MARKET IN FIVE TRADING DAYS THEY WENT FROM A
DOLLAR PRICE OF 83 TO A DOLLAR PRICE OF 75 AND THREE MARKETMAKERS
BASICALLY STOPPED ANSWERING THEIR TELEPHONES THE PRICE DROP WAS A REACTION
TO WORRIES THAT NAFTA MIGHT NOT GET APPROVED SHE SAYS

THIS YEAR COULD BE PARTICULARLY WILD FOR INVESTORS IN LATIN AMERICAN BONDS
BECAUSE SO MANY OF THESE NATIONS FACE A CHANGE IN LEADERSHIP OR NEW
ELECTIONS MEXICO ARGENTINA AND BRAZIL WILL HAVE ELECTIONS THIS YEAR
POINTS OUT CAROL ANN HOFFMANN AN EMERGINGMARKETS ANALYST AT JP MORGAN
VENEZUELA AND CHILE JUST HAD ELECTIONS

WHAT'S MORE THE ARGENTINE GOVERNMENT IS CLOSELY WATCHING THE EVENTS IN
CHIAPAS BECAUSE OF WORRIES THAT SOMETHING SIMILAR COULD HAPPEN THERE AS
WELL SAYS MS HOFFMANN ARGENTINA PUT SECURITY SERVICES ON ALERT 10 DAYS
AGO

AND THOUGH FEW ANALYSTS AND MONEY MANAGERS WILL SAY SO ON THE RECORD MANY
OF THEM WORRY ABOUT WHAT WOULD HAPPEN TO INVESTMENTS IF MEXICO'S RULING
INSTITUTIONAL REVOLUTIONARY PARTY DOESN'T WIN THE COMING ELECTION AND LOSES
POWER FOR THE FIRST TIME IN MORE THAN 60 YEARS THE REELECTION OF THE PRI
 THE PARTY'S SPANISH ACRONYM IS TAKEN ALMOST FOR GRANTED GIVEN THE
PARTY'S HISTORY OF WINNING ELECTIONS THROUGH ALLEGED VOTING FRAUD BUT
OTHERS POINT OUT THAT MORE SO THAN IN PAST ELECTIONS THIS YEAR'S ELECTIONS
IN MEXICO WILL BE CLOSELY WATCHED TO SEE HOW SERIOUS THAT NATION'S LEADERS
ARE ABOUT POLITICAL REFORMS

MR PAPPAYLIOU OF GT CAPITAL CALLS THE DIPS AND JUMPS IN DEVELOPINGNATION
BOND PRICES IN REACTION TO POLITICAL EVENTS HICCUPS AND SAY THEY ARE
WONDERFUL BUYING OPPORTUNITIES THE DEATH OF CHINESE LEADER DENG XIAOPING
WOULD BE ONE POSSIBLE BUYING OPPORTUNITY HE SAYS

IN VENEZUELA SAYS MR PAPPAYLIOU INVESTORS ARE SIFTING THROUGH THE
RHETORIC AND REALIZING THAT A LOT HASN'T CHANGED WITH THE ELECTION OF MR
CALDERA AS PRESIDENT EVEN THOUGH HE IS A POPULIST AND CONTINUES TO RAIL
AGAINST THE COUNTRY'S VALUEADDEDTAX HE'S SURROUNDING HIMSELF WITH A
PRUDENT MODERN CABINET SAYS MR PAPPAYLIOU

ROBERT CITRONE A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS OF BOSTON
AGREES IN VENEZUELA DURING HIS ELECTION CAMPAIGN MR CALDERA WAS BEING
MORE POPULIST THAN HE REALLY IS SAYS MR CITRONE WHEN HE TAKES POWER
NEXT MONTH HE WILL TAKE A MORE RATIONAL POSITION INSISTS MR CITRONE
HIS ADVISERS SAY THE VAT WILL NOT BE REMOVED

NIGERIA'S CONTINUED POLITICAL PROBLEMS AREN'T A CONCERN SAYS MR
PAPPAYLIOU IT'S JUST THE CONTINUATION OF A TREND OF AUTOCRATIC RULE AND
IT DOESN'T AFFECT NIGERIA'S CAPACITY AND ABILITY TO PAY ITS DEBTS HE
SAYS

MR PAPPAYLIOU IS CONVINCED THAT NO MATTER WHAT THE POLITICIANS SAY WHEN IT
COMES TO MAKING DECISIONS IN MANY OF THESE NATIONS THEY WILL COME DOWN ON
THE SIDE OF FREE MARKETS FOR DEVELOPING NATIONS THERE IS NO INCENTIVE TO
DEFAULT AND BE EXCLUDED FROM THE WORLD'S CAPITAL MARKETS

BUT INVESTORS WHO BECOME ENTHUSIASTIC ABOUT DEVELOPING NATIONS ESPECIALLY
IN LATIN AMERICA OUGHT TO REMEMBER THAT THERE IS A LONG AND COLORFUL
HISTORY OF POLITICS GETTING IN THE WAY OF PAYING OFF DEBTS THAT'S EXACTLY
WHAT HAPPENED IN PERU IN THE MID1980S WHEN IT CHOSE TO LIMIT ITS INTEREST
PAYMENTS ON FOREIGN DEBT AND CUT ITSELF OFF FROM FOREIGN LOANS JUST WHEN IT
NEEDED THEM THE MOST

ACCORDING TO A STUDY BY SALOMON BROTHERS INC THE ONLY REGION TO BE A
MAJOR DEFAULTER IN ALL FOUR OF THE MAJOR INTERNATIONAL DEBT CRISES SINCE
THE 1820S WAS LATIN AMERICA

US TREASURY NOTES AND BONDS ENDED THE WEEK ON A QUIET NOTE POSTING SMALL
DECLINES FRIDAY IN WHAT TRADERS ARE CALLING A DIRECTIONLESS MARKET

THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1/4
POINT OR LESS THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 99 17/32
ITS YIELD WHICH MOVES INVERSELY TO THE PRICE ROSE TO 628 FROM 626 ON
THURSDAY

THE TREASURY DEPARTMENT WILL BE SELLING 17 BILLION OF TWOYEAR NOTES
TOMORROW AND 12 BILLION IN FIVEYEAR NOTES WEDNESDAY IN WHENISSUED
TRADING FRIDAY THE TWOYEAR NOTE YIELDED 411 UP FROM 408 ON THURSDAY
WHILE THE WHENISSUED FIVEYEAR NOTE FINISHED THE WEEK AT 505 UP FROM
503 9401240042 940124 COMMODITIES QUAKE REBUILDING TO AID LUMBER
COPPER  BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET
JOURNAL

AS LOS ANGELES RESIDENTS GO ABOUT REBUILDING THEIR LIVES AND HOMES AFTER
LAST WEEK'S DEVASTATING EARTHQUAKE THE PRICES OF THE INDUSTRIAL COMMODITIES
THEY USE ARE LIKELY TO GET A BOOST

THE MOST DIRECT BENEFICIARIES OF A REBUILDING BOOM IN SOUTHERN CALIFORNIA
WILL BE COPPER AND LUMBER BOTH BASIC RAW MATERIALS OF THE US HOUSING
INDUSTRY IN BOTH CASES ANALYSTS AND ECONOMISTS SAY THE QUAKE WILL
STRENGTHEN ALREADY POSITIVE MARKET FUNDAMENTALS AND LIKELY PUSH PRICES
HIGHER

I'M FAIRLY CONFIDENT WE'LL SEE COPPER PRICES CLIMB TO AS MUCH AS 93 CENTS A
POUND BY THE END OF THE QUARTER FROM FRIDAY'S SETTLE PRICE OF 8565 CENTS A
POUND FOR THE ACTIVELY TRADED MARCH FUTURES CONTRACT SAYS BERNARD SAVAIKO
SENIOR ANALYST FOR PAINEWEBBER INC LUMBER OVER THE NEXT FEW MONTHS COULD
CHALLENGE 440 PER THOUSAND BOARD FEET UP FROM FRIDAY'S SETTLE PRICE OF
40780 ANALYSTS SAY

THE MARKET IMPACT OF THE QUAKE SOME ECONOMISTS ADD COULD EVEN INDIRECTLY
INFLUENCE BOND PRICES

COPPER AND LUMBER ARE AMONG THE 21 FUTURES CONTRACTS TRACKED BY THE KNIGHT
RIDDER COMMODITY RESEARCH BUREAU INDEX ECONOMISTS WATCH THIS INFLUENTIAL
INDEX FOR HINTS OF CHANGES IN THE ECONOMIC CYCLE BOND TRADERS IN
PARTICULAR PAY CLOSE ATTENTION TO THE KRCRB INDEX BECAUSE OF ITS
WELLDOCUMENTED INVERSE CORRELATION WITH BOND PRICES

STRONG SURGES IN LUMBER AND COPPER PRICES OVER THE NEXT FEW MONTHS WOULD
HELP TO PUSH THE KRCRB INDEX HIGHER AS DID GRAINPRICE GAINS RELATED TO
THE FLOODING OF THE MIDWEST LAST FALL WHICH POTENTIALLY COULD EXERT
DOWNWARD PRESSURE ON BOND PRICES

THE AFTERMATH OF THE QUAKE ALSO COULD LEND STRENGTH TO SUCH INDUSTRIAL
METALS AS ALUMINUM WHICH IS USED TO MAKE ALUMINUM SIDING AND WINDOW FRAMES
FOR NEW HOMES ALUMINUM FUTURES CONTRACTS ARE TRADED ON THE LONDON METALS
EXCHANGE

OBVIOUSLY THE REBUILDING OF THE LA INFRASTRUCTURE WILL HAVE A POSITIVE
IMPACT ON PRICES SAYS FRED DEMLER METALS ECONOMIST FOR E D & F MAN IT
WILL ADD TO THE ALREADY POSITIVE SUPPLYDEMAND BALANCE IN BOTH COPPER AND
ALUMINUM

THE QUAKE'S EFFECT WAS VISIBLE IN THE LUMBER AND COPPER MARKETS IN THE DAYS
THAT FOLLOWED THE CALIFORNIA CATASTROPHE ON TUESDAY THE DAY AFTER THE
QUAKE COPPER FOR MARCH DELIVERY LEAPED 17 CENTS TO SETTLE AT 867 CENTS A
POUND ON WEDNESDAY MARCH LUMBER FOLLOWED SUIT RISING THE DAILY
PRICEMOVEMENT LIMIT OF 10 TO 40240 PER THOUSAND BOARD FEET

IF YOU COULD DRAW A PARALLEL IT WOULD BE TO THE FLOODING OF THE MIDWEST
WHERE MASSIVE REBUILDING WAS NECESSARY SAYS JOHN GROSS OF JE GROSS &
ASSOCIATES A METALS CONSULTING COMPANY THAT HAD AN IMPACT ON LUMBER AND
COPPER PRICES

TO BE SURE OTHER MARKET FACTORS ARE INFLUENCING THE PRICES OF BOTH THESE
COMMODITIES THE LUMBER MARKET IS BEING DRIVEN BY HOUSING STARTS WHICH
HAVE CONTINUED TO BE STRONG SAYS BUD MERRILL LUMBER ANALYST FOR SMITH
BARNEY SHEARSON ON THURSDAY FOR EXAMPLE LUMBER PRICES AGAIN SURGED THE
10 DAILY LIMIT AFTER THE COMMERCE DEPARTMENT REPORTED THAT US HOUSING
STARTS ROSE TO AN ANNUAL RATE OF 1540000 UNITS IN DECEMBER FROM 1450000
UNITS IN NOVEMBER PUSHING HOME BUILDING TO ITS HIGHEST LEVEL IN FOUR YEARS

COPPER PRICES ESPECIALLY IN THE US ARE BENEFITING FROM LOWER PRODUCTION
AND HIGHER CONSUMPTION WORLDWIDE MINE PRODUCTION OF COPPER FELL 5 IN THE
LAST HALF OF 1993 TO 37 MILLION TONS FROM 39 MILLION TONS A YEAR EARLIER
ACCORDING TO THE AMERICAN BUREAU OF METALS STATISTICS MEANWHILE US
CONSUMPTION OF COPPER IN THE FOURTH QUARTER OF 1993 ROSE 9 TO 590000 TONS
FROM 540000 TONS A YEAR EARLIER

ON FRIDAY THE PRICES OF COPPER AND LUMBER RETREATED SLIGHTLY COPPER'S
PRICE FELL FRIDAY IN WHAT ANALYSTS SAID WAS A TECHNICAL CORRECTION AFTER TWO
WEEKS OF GAINS AND LUMBER'S PRICE SAGGED SIMILARLY AFTER THE TWO
CONSECUTIVE DAYS OF RISING BY THE PERMISSIBLE LIMIT

YET THESE MOVEMENTS APPEAR TO BE ABERRATIONS IN UPWARD TRENDS IN THE CASE
OF COPPER SOUTHERN CALIFORNIA BUILDERS WILL NEED TO BUY BIG QUANTITIES OF
PLUMBING TUBE AND ELECTRICAL WIRE TO REBUILD DEMOLISHED HOMES KEVIN
NORRISH RESEARCH MANAGER FOR COPPER FABRICATING AT CRU INTERNATIONAL LTD
A BRITISH METALS RESEARCH AND CONSULTING COMPANY SAYS US CONSUMPTION OF
COPPER WHICH WAS 2370000 TONS IN 1993 MAY RISE THIS YEAR AS A RESULT OF
THE EARTHQUAKE

MR GROSS SAYS SHIPMENTS OF COPPER ROD IN 1993 WHICH ACCOUNT FOR ABOUT 76
OF CONSUMPTION OF REFINED COPPER MATCHED OR EXCEEDED THE 178 MILLIONTON
RECORD OF 1989 THIS YEAR HE SAYS SHIPMENTS MAY BE HIGHER STILL IN PART
BECAUSE OF EARTHQUAKERELATED REBUILDING WE COME INTO 1994 WITH VERY
STRONG ORDERBOOK DEMAND FOR COPPER CONSISTENT WITH THE GROWTH OF THE US
ECONOMY MR GROSS SAYS

IN LUMBER THE REBUILDING IN CALIFORNIA COULD POTENTIALLY RESULT IN SUPPLY
SHORTAGES OF SOME WOOD PRODUCTS ON THE WEST COAST SAYS NICK KENT OF THE
NORTH AMERICAN LUMBERMEN'S ASSOCIATION WE MIGHT FIND SPECIALTY PRODUCTS IN
HIGH DEMAND HE SAYS TAKE THE FREEWAY REPAIR THEY MIGHT USE TIMBER TO
SHORE UP HIGHWAYS OR AS SHORING SUPPORT FOR NEW CONSTRUCTION THAT CREATES
A LARGE APPETITE FOR A PRODUCT THAT MIGHT NOT BE READILY AVAILABLE
9401240041 940124 WHO'S NEWS FAILURE GROUP INC

FAILURE GROUP INC MENLO PARK CALIF MICHAEL R GAULKE WAS ELECTED A
DIRECTOR OF THIS CONSULTING FIRM EXPANDING BOARD MEMBERSHIP TO SEVEN MR
GAULKE BECAME PRESIDENT OF THE COMPANY LAST MARCH AND PRIOR TO THAT WAS
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9401240039 940124
MARATHON OIL CO DISCOVERY

HOUSTON MARATHON OIL CO ANNOUNCED A NATURAL GAS DISCOVERY IN EGYPT'S
NORTHERN NILE DELTA AREA ABOUT 105 MILES NORTH OF CAIRO MARATHON OIL IS
PART OF USXMARATHON GROUP

THE EL QAR'A NORTHWEST NO 1 WELL TESTED AT COMBINED DAILY FLOW RATES OF
362 MILLION CUBIC FEET OF NATURAL GAS AND 215 BARRELS OF CONDENSATE FROM
THREE ZONES THE TESTS WERE CONDUCTED AT MEASURED DEPTHS OF 11254 TO 11275
FEET 11812 TO 11835 FEET AND 11926 TO 11943 FEET ON CHOKE SIZES
VARYING FROM 3/4 TO 1 1/2 INCHES 9401240038 940124 PARALLEL PETROLEUM
DISCOVERY

MIDLAND TEXAS PARALLEL PETROLEUM CORP SAID ITS FOURTH CANYON REEF
DISCOVERY WELL THE PHILLIPS NO 1 FLOWED AT A RATE OF 580 BARRELS OF OIL
AND 149 MILLION CUBIC FEET OF NATURAL GAS DAILY FROM A DEPTH OF ABOUT 9000
FEET

THE OIL AND NATURAL GAS COMPANY SAID IT EXPECTS THE WELL TO PRODUCE 130
BARRELS OF OIL AND ABOUT 460 THOUSAND CUBIC FEET OF NATURAL GAS A DAY

PARALLEL OWNS A 60 WORKING INTEREST IN THE WELL WHICH IS IN THE HORSESHOE
ATOLL AREA OF HOWARD COUNTY TEXAS FIVE CLOSELY HELD COMPANIES OWN THE
REMAINING 40 INTEREST 9401240037 940124 PEPPERAND SALT

TILL THEY STUDY THE POLLS

 EB DE VITO

AT THE SUPERMART CHECKOUT STAND 9401240036 940124 WHO'S NEWS GREAT
BEAR TECHNOLOGY INC

GREAT BEAR TECHNOLOGY INC MORAGA CALIF DOUGLAS C MACLELLAN WAS
NAMED A DIRECTOR OF THIS MULTIMEDIA SOFTWARE CONCERN EXPANDING BOARD
MEMBERSHIP TO SIX MR MACLELLAN 37 YEARS OLD IS A PRINCIPAL OF MAROON
BELLS CAPITAL PARTNERS A MERCHANT BANKING FIRM 9401240035 940124
BUSINESS BRIEF DETROIT EDISON CO ELECTRICAL RATES ARE CUT SECOND
DROP IN 13 MONTHS

DETROIT EDISON CO SAID IT WILL REDUCE ELECTRIC RATES FOR ITS NEARLY TWO
MILLION CUSTOMERS BY 78 MILLION THE SECOND REDUCTION IN 13 MONTHS

THE REDUCTION IS IN LINE WITH A MICHIGAN PUBLIC SERVICE COMMISSION RATE
ORDER ISSUED FRIDAY THE RATE REDUCTION WAS SCHEDULED TO TAKE EFFECT
SATURDAY 

MORE THAN A YEAR AGO THE DETROITBASED UTILITY FILED FOR A 113 MILLION RATE
INCREASE FOR 1994 TO REFLECT INCREASES IN FEDERAL INCOMETAX RATES CERTAIN
REQUIRED ACCOUNTING CHANGES AND OTHER ITEMS STATE REGULATORS DENIED THAT
REQUEST IN OCTOBER 9401240034 940124 BUSINESS BRIEF SONY CORP 
REORGANIZATION IS PLANNED TO DECENTRALIZE OPERATIONS

SONY CORP SAID IT WILL REORGANIZE ITS CORPORATE STRUCTURE AIMING TO
DECENTRALIZE ITS OPERATIONS AND REDUCE LAYERS OF MANAGEMENT

SONY OFFICIALS SAID THE MOVE WON'T LEAD TO EMPLOYMENT CUTS OR FACTORY
CLOSINGS THE CHANGES ARE LIMITED TO PARENTCOMPANY OPERATIONS AND WON'T
AFFECT OVERSEAS UNITS SUCH AS SONY CORP OF AMERICA WHICH HEADS THE
COMPANY'S MOVIE STUDIO AND MUSIC OPERATIONS IN THE US

THE JAPANESE CONSUMERELECTRONICS CONCERN SAID IT WILL REGROUP ITS VARIOUS
PRODUCT AND MARKETING GROUPS INTO THREE GROUP COMPANIES AND FIVE
DIVISION COMPANIES THE NEW COMPANIES WILL BE RESPONSIBLE FOR SUCH AREAS
AS CONSUMER AUDIOVISUAL PRODUCTS COMPONENTS RECORDING MEDIA AND BATTERIES
BROADCAST PRODUCTS SYSTEMS BUSINESS PERSONAL INFORMATION AND
COMMUNICATIONS MOBILE ELECTRONICS AND SEMICONDUCTORS

THE COMPANY SAID THE NEW STRUCTURE WOULD IMPROVE COORDINATION OF MARKETING
AND MANUFACTURING EFFORTS AND ALLOW EACH OF THE NEW COMPANIES GREATER
AUTONOMY 9401240033 940124 JP REALTY INC IPO PROCEEDS

SALT LAKE CITY JP REALTY INC SAID IT RECEIVED NEARLY 200 MILLION IN
PROCEEDS FROM ITS INITIAL PUBLIC OFFERING THE STOCK OF THIS REALESTATE
INVESTMENT TRUST WHICH OWNS AND DEVELOPS COMMERCIAL PROPERTIES BEGAN
TRADING JAN 14 ON THE NEW YORK STOCK EXCHANGE 9401240032 940124 WHO'S
NEWS IMMUNEX NAMES CEO FROM RANKS OF PARENT

SEATTLE IMMUNEX CORP ENDED A FIVEMONTH SEARCH FOR A NEW CHAIRMAN AND
CHIEF EXECUTIVE OFFICER BY NAMING AN EXECUTIVE FROM AMERICAN CYANAMID CO
WHICH ACQUIRED A CONTROLLING INTEREST IN IMMUNEX ABOUT A YEAR AGO

EDWARD V FRITZKY 43 YEARS OLD SUCCEEDS STEVEN GILLIS THE
BIOPHARMACEUTICAL FIRM'S ACTING CHIEF EXECUTIVE SINCE SEPTEMBER MR FRITZKY
WAS FORMERLY PRESIDENT OF LEDERLE LABORATORIES A UNIT OF AMERICAN CYANAMID
WAYNE NJ BEFORE JOINING LEDERLE IN 1989 HE WORKED AT SEARLE
PHARMACEUTICALS INC A UNIT OF MONSANTO CO FOR 16 YEARS

AS PART OF CYANAMID'S INVESTMENT IN IMMUNEX STEPHEN A DUZAN RESIGNED AS
CHAIRMAN AND CHIEF EXECUTIVE AND MR GILLIS STEPPED IN TEMPORARILY IN
SEPTEMBER AMID THE SEARCH FOR A PERMANENT SUCCESSOR MR GILLIS AN IMMUNEX
FOUNDER WILL RESUME HIS POSITION AS IMMUNEX EXECUTIVE VICE PRESIDENT

A COMPANY SPOKESWOMAN SAID MR FRITZKY HAD NO IMMEDIATE PLANS TO ALTER
IMMUNEX'S STRATEGIC FOCUS OR OPERATIONS 9401240031 940124 WHO'S NEWS 
CORRPRO COS

CORRPRO COS MEDINA OHIOMICHAEL R TIGHE 43 YEARS OLD WAS NAMED TO THE
NEWLY CREATED POST OF SENIOR VICE PRESIDENT OF THIS PROVIDER OF
CORROSIONCONTROL ENGINEERING SERVICES SYSTEMS AND EQUIPMENT MR TIGHE WAS
PRESIDENT OF ELGARD CORP CHARDON OHIO A MAJOR COMPETITOR IN THE
CORROSIONCONTROL MARKET FOR BRIDGES AND CONCRETE STRUCTURES CORRPRO SAID
9401240030 940124 INTERNATIONAL FINNISH JOBLESS RATE SETS RECORD

HELSINKI MORE THAN 536000 FINNS WERE OUT OF WORK LAST MONTH A
POSTWORLD WAR II JOBLESS HIGH OF 218 THE LABOR MINISTRY SAID

IN NOVEMBER 203 OF THE WORK FORCE WAS UNEMPLOYED IN DECEMBER 1992 179
OF THE FINNISH WORK FORCE WAS JOBLESS THE MINISTRY SAID

UNEMPLOYMENT FIGURES FROM THE LABOR MINISTRY AREN'T CONSIDERED FINLAND'S
OFFICIAL UNEMPLOYMENT RATE OFFICIAL FIGURES FOR DECEMBER USED IN
INTERNATIONAL COMPARISONS WILL BE RELEASED IN FEBRUARY BY THE CENTRAL
STATISTICS OFFICE FINLAND'S OFFICIAL UNEMPLOYMENT RATE WAS 184 IN
NOVEMBER 9401240029 940124 CANADIAN CONSUMER PRICES RISE

OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 02 IN
DECEMBER FROM NOVEMBER SAID STATISTICS CANADA A GOVERNMENT AGENCY

THE DECEMBER RISE FOLLOWED INCREASES OF 02 IN NOVEMBER AND 01 IN
OCTOBER 9401240028 940124 WHO'S NEWS BELL INDUSTRIES INC

BELL INDUSTRIES INC LOS ANGELES GORDON M GRAHAM SENIOR VICE
PRESIDENT WAS NAMED TO THE SEVENMEMBER BOARD MR GRAHAM 59 YEARS OLD
SUCCEEDS THE LATE STANLEY S FINE BELL DISTRIBUTES AND MAKES PRODUCTS FOR
THE ELECTRONICS COMPUTER BUILDING AND OTHER MARKETS 9401240027 940124
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

CLARIDGE HOTEL & CASINO CORP 85 MILLION OF FIRSTMORTGAGE NOTES DUE
FEB 1 2002 PRICED AT PAR TO YIELD 1175 ACCORDING TO MCM
CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB2
BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP
THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN &
JENRETTE SECURITIES CORP

FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES
DUE JAN 28 2004 PRICED AT PAR TO YIELD 624 ACCORDING TO MCM
CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A
SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH
UNDERWRITERS LED BY MORGAN STANLEY & CO

NORWEST FINANCIAL INC 150 MILLION OF NOTES DUE FEB 1 2004 PRICED AS
6S AT 9925 TO YIELD 6101 ACCORDING TO MCM CORPORATEWATCH THE
NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 41 BASIS POINTS ABOVE TREASURYS
RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE
SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORWEST FINANCIAL IS A
UNIT OF NORWEST CORP

CELADON GROUP INC INITIAL PUBLIC OFFERING OF 21 MILLION COMMON SHARES
PRICED AT 1450 EACH THROUGH FURMAN SELZ INC AND CJ LAWRENCE/DEUTSCHE
BANK SECURITIES CORP ACCORDING TO THE COMPANY

FEDERAL HOME LOAN MORTGAGE CORP 120 BILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE
OFFERING SERIES GOLD 1684 IS BACKED BY FREDDIE MAC GOLD 30YEAR 65
MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF
71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS

FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REMIC SECURITIES OFFERED
BY MORGAN STANLEY & CO THE OFFERING SERIES 1685 IS BACKED BY THE AGENCY'S
30YEAR RELOCATION LOANS 6 MORTGAGE SECURITIES THE COLLATERAL HAS A
WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE REMAINING TERM TO
MATURITY OF 358 MONTHS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES
OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199427 IS
BACKED BY FANNIE MAE'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS
A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE MATURITY OF 359
MONTHS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REMIC SECURITIES
OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 199424 IS
BACKED BY 50 MILLION OF PRINCIPALONLY STRIPS FROM TRUST 252 AND 50
MILLION OF 30YEAR 75 POS FROM TRUST 254

ARACRUZ CELLULOSA SA BRAZIL 120 MILLION OF 10375 EUROBONDS DUE JAN
31 2002 AT ISSUE AND FIXED REOFFER PRICE PAR VIA CHASE INVESTMENT BANK
LTD BONDS PRICED TO YIELD 10375 A MARGIN OF 490 BASIS POINTS OVER
EIGHTYEAR US TREASURY YIELD CURVE CALLABLE AT END OF THIRD YEAR AT
94527 TO YIELD A MARGIN OF 440 BASIS POINTS OVER THREEYEAR TREASURY AT
SAME TIME PUT OPTION EXERCISABLE AT 9371 TO YIELD A MARGIN OF 415 BASIS
POINTS OVER THREEYEAR TREASURY FEES 085 INTEREST PAYABLE SEMIANNUALLY

BANCO BOZANO SIMONSEN BRAZIL 60 MILLION OF 85 EUROBONDS DUE JAN 31
1997 AT FIXED REOFFER PRICE 99857 TO YIELD 420 BASIS POINTS OVER 4375
THREEYEAR US TREASURY BOND VIA MERRILL LYNCH INTERNATIONAL LTD FEES ONE
INTEREST PAYABLE SEMIANNUALLY

BANCO NACIONAL DE COMERCIO EXTERIOR SNC MEXICAN AGENCY 1 BILLION OF
GLOBAL BONDS DUE FEB 2 2004 WITH COUPON 725 AND ISSUE AND FIXED REOFFER
PRICE 99516 VIA JOINT LEAD UNDERWRITERS GOLDMAN SACHS AND MERRILL LYNCH
BONDS PRICED TO YIELD 7324 A MARGIN OF 163 BASIS POINTS OVER THE 575
US TREASURY OF AUGUST 2003 THE BORROWER'S SENIOR DEBT OUTSTANDING RATED
BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P FEES 075

BANPAIS SA INSTITUCION DE BANCA MULTIPLE BRAZIL 100 MILLION OF 725
EUROBONDS DUE JAN 28 1997 AT ISSUE AND FIXED REOFFER PRICE 997325 VIA
ING BANK AT FIXED REOFFER PRICE BONDS YIELD 7351 SEMIANNUALLY A MARGIN
OF 299 BASIS POINTS OVER THREEYEAR US TREASURY FEES 075

DEUTSCHE HYPOTHEKEN BANK AG GERMANY ONE BILLION MARKS OF DOMESTIC
FLOATINGRATE NOTES IN TWO TRANCHES VIA DRESDNER BANK AG BOTH TRANCHES PAY
INTEREST SEMIANNUALLY FLAT AT SIXMONTH LONDON INTERBANK OFFERED RATE FIRST
TRANCHE OF 500 MILLION MARKS DUE AUG 1 2001 AT ISSUE 9985 FEES 03
MINUS TWO FOR LEAD MANAGER SECOND TRANCHE 500 MILLION MARKS OF NOTES DUE
JUNE 28 2003 FEES AND ISSUE PRICE UNDISCLOSED

EUROPEAN INVESTMENT BANK SUPRANATIONAL 300 MILLION DUTCH GUILDERS OF 5
EUROBONDS DUE FEB 16 1999 AT ISSUE PRICE 10047 VIA ABN AMRO BANK NV
REOFFERED AT 9967 TO YIELD 5076 A MARGIN OF 234 BASIS POINTS OVER 675
DUTCH STATE LOAN OF FEBRUARY 1999 FEES ONE

MINAS GERAIS BRAZILIAN STATE 200 MILLION OF BONDS WITH COVERED
WARRANTS ATTACHED VIA BANQUE INDOSUEZ ISSUE DIVIDED INTO TWO 100 MILLION
TRANCHES OF SERIES A NOTES DUE FEB 10 1999 AND SERIES B NOTES DUE FEB
10 2000 BOTH TRANCHES ISSUED AT PAR SERIES A NOTES CARRY SEMIANNUAL
COUPON 7875 AND SERIES B NOTES CARRY SEMIANNUAL COUPON 825 EACH WARRANT
EXERCISABLE TO PURCHASE 100000 ORDINARY SHARES OF CEMIG ELECTRICITY
PRODUCER OWNED BY MINAS GERAIS EXERCISE PRICE FIXED AT 275 PER 1000
SHARES OR 30 ABOVE 30DAY AVERAGE CLOSING SHARE PRICE THURSDAY'S CLOSING
SHARE PRICE 244 PER 1000 SHARES EXERCISE PERIOD FOR WARRANTS APRIL 12 TO
FEB 12 1997 FEES 175 POINTS

KREDIT ANSTALT FUER WIEDERAUFBAU GERMANY 250 MILLION MARKS OF
FIXED/FLOATINGRATE EURONOTES DUE FEB 16 2004 AT ISSUE PRICE 1014 VIA
TRINKAUS & BERKHARDT KGAA FOR FIRST YEAR INTEREST PAID ANNUALLY AT COUPON
OF 675 FROM YEAR TWO TO MATURITY INTEREST PAID SEMIANNUALLY FLAT AT
SIXMONTH FRANKFURT INTERBANK OFFERED RATE TO MAXIMUM 8 FEES 0875

RABOBANK NEDERLAND NETHERLANDS 100 MILLION OF FLOATINGRATE RANGE
NOTES DUE FEB 23 1995 AT ISSUE AND REOFFER PRICE PAR VIA UBS LTD
INTEREST FLOATS AT 60 BASIS POINTS OVER THREEMONTH LIBOR AND PAID ON DAYS
WHEN LIBOR FALLS WITHIN FOLLOWING SIXMONTH RANGES RANGE ONE 3 TO 4
RANGE TWO 325 TO 45 FEES 01

URBAN MORTGAGE BANK OF SWEDEN SWEDEN 100 MILLION OF FLOATINGRATE
EURONOTES DUE FEB 5 1996 AT ISSUE AND FIXED REOFFER PRICE 9996 VIA
CHEMICAL INVESTMENT BANK LTD INTEREST PAID QUARTERLY AT THREEMONTH LIBOR
PLUS 20 BASIS POINTS FEES 01 9401240026 940124 LETTERS TO THE EDITOR 
ENVIRONMENTAL AUDITS

AS A DESIGNER AND DISTRIBUTOR OF AUDIT MASTER AUDITING SOFTWARE TO NUMEROUS
FORTUNE 500 CORPORATIONS WE ARE IN A POSITION TO KNOW OUR CUSTOMERS'
AUDITING HABITS AND BEHAVIORS YOUR DEC 13 MARKETPLACE ARTICLE FIRMS
REVEAL MORE DETAILS OF ENVIRONMENTAL EFFORTS BUT STILL DON'T TELL ALL
UNFAIRLY SUGGESTS THAT MOST LARGE CORPORATIONS HAVE SOMETHING TO HIDE ABOUT
THEIR ENVIRONMENTAL ACTIVITIES IN DEFENSE OF OUR CUSTOMERS YOU SHOULD KNOW
THAT ENVIRONMENTAL AUDIT REPORTS MAY REFER TO PROPRIETARY MANUFACTURING
PROCESSES THERE ARE MORE THAN ENVIRONMENTAL ISSUES AT STAKE 9401240025
940124 CITICORP US IN TALKS TO END REGULATORY PACT  COMPANY
MIGHT REINSTATE DIVIDEND IF COMPTROLLER CURTAILS SUPERVISION  BY
STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK CITICORP IS HOLDING TALKS WITH THE COMPTROLLER OF THE CURRENCY
TO END THE STRICT REGULATORY SUPERVISION THE BANKING GIANT HAS BEEN UNDER
FOR THE PAST TWO YEARS THE MOVE COULD PAVE THE WAY FOR CITICORP TO
REINSTATE ITS DIVIDEND BY APRIL

THE REGULATORY AGREEMENT WHICH GIVES THE COMPTROLLER EXTRAORDINARILY BROAD
POWERS OVER CITICORP WAS IMPOSED IN FEBRUARY 1992 AS THE BANK WAS
STRUGGLING TO RECOVER FROM BILLIONS OF DOLLARS OF BAD LOANS ALTHOUGH THE
ENTIRE BANKING INDUSTRY FELL VICTIM TO THE REALESTATE SLUMP IN THE EARLY
1990S CITICORP'S PROBLEMS WERE WORSE THAN MOST PROMPTING REGULATORS TO PUT
THE BANK ON A TIGHTER LEASH

CITICORP'S FINANCIAL POSITION HAS RECOVERED SINCE THEN AS IT BUILT RESERVES
AND CAPITAL WHILE SLASHING COSTS LAST WEEK THE BANK REPORTED RECORD 1993
EARNINGS WHICH ARE EXPECTED TO HELP CITICORP BUILD A STRONG CASE WITH THE
COMPTROLLER ALTHOUGH PEOPLE FAMILIAR WITH THE TALKS SAY THERE'S A GOOD
CHANCE THE PACT WILL BE TERMINATED THEY CAUTIONED THAT IT IS NOT
GUARANTEED JOHN S REED CITICORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER
RECENTLY TOLD A GROUP OF CONSUMER BANKERS THAT THE MEMORANDUM OF
UNDERSTANDING WILL BE REVIEWED NEXT MONTH IN THE HOPES OF TERMINATING THE
PACT

IT CERTAINLY COULD HAPPEN IN FEBRUARY SAID ONE PERSON FAMILIAR WITH THE
DISCUSSIONS BOTH CITICORP AND THE COMPTROLLER DECLINED COMMENT

WALL STREET ANALYSTS SAID THAT IF THE REGULATORY ACCORD IS LIFTED
CITICORP'S COMMON STOCK DIVIDEND COULD BE REINSTATED BY THE END OF THE FIRST
QUARTER PERHAPS AT THE COMPANY'S ANNUAL MEETING MOST EXPECT THE DIVIDEND
WON'T BE MORE THAN 50 CENTS A SHARE ANNUALLY REGULATORS FORCED CITICORP TO
SUSPEND THE DIVIDEND IN LATE 1991 BEFORE THE REGULATORY PACT WAS SIGNED

I'D BE REAL SURPRISED IF THEY DIDN'T INITIATE SOMETHING INVOLVING THE
DIVIDEND SAID DIANE GLOSSMAN BANKING ANALYST AT SALOMON BROTHERS IT'S
MOST LIKELY TO BE A TOKEN DIVIDEND INITIALLY

ASIDE FROM THE POSSIBILITY OF A DIVIDEND REINSTATEMENT THE CESSATION OF THE
PACT WOULD GIVE THE NATION'S BIGGEST BANKING COMPANY FURTHER ROOM TO EXPAND
BUSINESS LINES AMONG OTHER THINGS THE AGREEMENT HAS RESTRICTED THE BANK'S
ABILITY TO EXPAND THROUGH ACQUISITIONS MR REED RECENTLY TOLD EMPLOYEES
THAT ALTHOUGH CITICORP WILL BE CUTTING ADDITIONAL COSTS THERE WILL BE
CAPITAL AVAILABLE FOR GROWTH

CITICORP WASN'T THE FIRST SOCALLED MONEYCENTER BANK TO COME UNDER TIGHTER
REGULATORY SCRUTINY WHEN BANKAMERICA CORP FACED ACUTE FINANCIAL
DIFFICULTIES IN THE MID1980S IT ALSO WAS REQUIRED TO SIGN AN AGREEMENT
WITH REGULATORS

IN LATE 1991 CITIBANK THE BANKING COMPANY'S MAIN BANK SUBSIDIARY WAS ALSO
PUT ON THE FEDERAL DEPOSIT INSURANCE CORP'S LIST OF PROBLEM BANKS A LIST
RESERVED FOR BANKS IN DIRE FINANCIAL STRAITS IT HAS SINCE BEEN REMOVED FROM
THE LIST PEOPLE CLOSE TO THE BANK SAY THE FDIC DECLINED COMMENT

LIKE THE REST OF THE BANKING INDUSTRY CITICORP'S RECOVERY HAS BEEN HELPED
BY WIDER NET INTEREST MARGINS OR THE DIFFERENCE BETWEEN LOAN RATES AND THE
BANKS' OWN COST OF FUNDS IN ADDITION THE REALESTATE MARKET HAS STABILIZED
AND BECOME MORE LIQUID ALLOWING FOR THE SALE OF SOME ASSETS CLOSE
REGULATORY SCRUTINY ALSO HELPED THE BANK RECOVER

A NUMBER OF AREAS OF REGULATORY CONCERN HAVE BEEN EITHER TOTALLY OR
PARTIALLY ALLEVIATED SAID MS GLOSSMAN OF SALOMON BROTHERS

SINCE THE 1992 AGREEMENT CITICORP HAS SHARPLY RAISED ITS CAPITAL RATIO
THROUGH ASSET SALES AND STOCK SALES AS WELL AS GREATLY REDUCED EXPENSES IN
ADDITION THE COMPANY OVERHAULED ITS MANAGEMENT BY PUTTING IN NEW SYSTEMS
FOR TRACKING THE RISKS FROM LOAN PORTFOLIOS IT TAPPED CHRISTOPHER STEFFEN
THE FORMER CHIEF FINANCIAL OFFICER OF EASTMAN KODAK CO TO OVERSEE
FINANCIAL CONTROLS AND EXPENSE MANAGEMENT

PROBLEM LOANS ARE ALSO ON THE MEND NONPERFORMING REALESTATE LOANS HAVE
FALLEN TO 41 BILLION FROM 56 BILLION ONE YEAR AGO WHILE RESERVES HAVE
RISEN TO 100 OF NONPERFORMING COMMERCIAL LOANS FROM 20 THREE YEARS AGO
IT IS NOW CONSIDERED WELLCAPITALIZED FOR REGULATORY PURPOSES

THE DECLINE IN PROBLEM REALESTATE LOANS IS BETTER THAN I PREDICTED
THOMAS JONES EXECUTIVE VICE PRESIDENT TOLD ANALYSTS LAST WEEK ANOTHER
STRONG SIGN OF IMPROVED FINANCIAL CONDITION WAS A STATEMENT BY MOODY'S
INVESTORS SERVICE INC THAT SAID IT WAS REVIEWING CITICORP'S BAA1 CREDIT
RATING FOR A POSSIBLE UPGRADE 9401240024 940124 HP GIVES VALENCE 
PIVOTAL CONTRACT TO SUPPLY BATTERY  BY G CHRISTIAN HILL STAFF
REPORTER OF THE WALL STREET JOURNAL

HEWLETTPACKARD CO PALO ALTO CALIF HAS AWARDED A SMALL BUT PIVOTAL
CONTRACT FOR NEW BATTERY TECHNOLOGY TO VALENCE TECHNOLOGY INC OFFICIALS OF
BOTH COMPANIES SAID

THE CONTRACT PROVIDES FOR INITIAL DELIVERY OF 35 MILLION OF VALENCE'S NEW
SOLIDSTATE LITHIUM BATTERIES WHICH PROVIDE MORE ENERGY AT A SMALLER SIZE
THAN CONVENTIONAL BATTERIES MORE IMPORTANTLY IT IS AN IMPLICIT ENDORSEMENT
OF VALENCE'S TECHNOLOGY OVER A RIVAL OFFERING BY SONY CORP OF TOKYO AND
GIVES VALENCE A LEG UP IN THE MOBILECOMPUTING BATTERY MARKET

VALENCE BASED IN SAN JOSE CALIF IS BUILDING A PLANT IN NORTHERN IRELAND
SCHEDULED TO START COMMERCIAL PRODUCTION ABOUT JULY IT HAS A CONTRACT WITH
MOTOROLA INC SCHAUMBURG ILL TO DELIVER 100 MILLION OF BATTERIES FOR
MOTOROLA'S CELLULAR PHONES PROVIDED THE COMMERCIAL PRODUCT MEETS MOTOROLA'S
SPECIFICATIONS

ROBERT FRANKENBERG AN HP VICE PRESIDENT AND GENERAL MANAGER SAID HIS
COMPANY LOOKED AT A SONY LITHIUM BATTERY AND A BATTERY OFFERED BY AN UNNAMED
THIRD COMPANY BUT SELECTED VALENCE BECAUSE WE WERE CONVINCED THAT VALENCE
IS THE FURTHEST ALONG IN REAL PRODUCTION HP ALSO WAS ATTRACTED BY THE
ENERGYSTORAGE EFFICIENCY PER SPACE OR VOLUME OF THE VALENCE PRODUCT

CALVIN REED VALENCE'S CHIEF EXECUTIVE OFFICER SAID HIS COMPANY'S BATTERY
TECHNOLOGY HAS MORE SHAPE AND SIZE FLEXIBILITY THAN SONY'S BECAUSE IT USES A
SOLIDSTATE POLYMER ELECTROLYTE INSTEAD OF A LIQUID TO CONNECT ANODES AND
CATHODES

THE HP CONTRACT OPENS A NEW MARKET FOR VALENCE IN MOBILE COMPUTING MR
REED SAID WHILE THE CELLULARPHONE MARKET IS GROWING AT A RATE OF NEARLY
40 ANNUALLY IN THE US AND IS BOOMING WORLDWIDE THE MOBILECOMPUTING
MARKET IS POTENTIALLY AS BIG

MR REED SAID THE CONTRACT CALLS FOR DELIVERIES OVER AN 18MONTH PERIOD
WHICH COULD BE INCREASED DEPENDING ON OUR JOINT SUCCESS WITH HP TERMS
WEREN'T DISCLOSED

BECAUSE OF HEAVY CAPITAL INVESTMENTS VALENCE ISN'T EXPECTED TO BE
SIGNFICANTLY PROFITABLE UNTIL ITS FISCAL YEAR ENDING MARCH 31 1996 IT
CLOSED AT 19375 A SHARE UP 1125 OR 62 FRIDAY IN NASDAQ STOCK MARKET
TRADING

HP SHARES CLOSED AT 8475 UP 1625 IN NEW YORK STOCK EXCHANGE COMPOSITE
TRADING 9401240023 940124 LETTERS TO THE EDITOR PROSPERITY NEEDS
DEMOCRACY

IN HIS DEC 14 EDITORIALPAGE PIECE PUSHING DEMOCRACY IS NO KEY TO
PROSPERITY ROBERT J BARRO CITED FREEDOM HOUSE DATA TO MAKE A NUMBER OF
JUDGMENTS SUGGESTING THAT DEMOCRACY AND ECONOMIC GROWTH ARE NOT CLOSELY
RELATED

AS AN ORGANIZATION DEVOTED TO STRENGTHENING DEMOCRACY FREEDOM HOUSE TAKES
THE VIEW THAT NEITHER DEMOCRACY NOR AUTHORITARIANISM OFFERS AN ABSOLUTE
GUARANTEE OF GROWTH AND PROSPERITY HOWEVER THERE ARE VALUES HIGHER THAN
GROWTH AT ANY PRICE IF A DICTATORSHIP ACHIEVES GROWTH THROUGH SLAVERY
GENOCIDE DEMOCIDE EXPANSIONISM OR WARFARE WE HAVE A MORAL OBLIGATION TO
REJECT THAT DICTATORSHIPS TEND TO WAR AGAINST DEMOCRACIES AND AGAINST EACH
OTHER BUT DEMOCRACIES TEND TOWARD PEACE WITH EACH OTHER THE ECONOMIC AND
HUMAN COSTS OF SUCH WARS AND CONFLICTS DESERVE TO BE PART OF PROF BARRO'S
BALANCE SHEET SURELY THE DESTRUCTIVE RECORD OF DICTATORSHIPS AFFECTS
ECONOMIC GROWTH AND PROPERTY BEYOND THEIR OWN BORDERS AUTHORITARIANS OFTEN
AFFECT OUR BOTTOM LINE

A PRIVATE BUSINESS SECTOR IS A NECESSARY BUT NOT A SUFFICIENT CONDITION FOR
DEMOCRACY AND FREEDOM SEVERAL AUTHORITARIAN ASIAN STATES HAVE THRIVING
BUSINESS SECTORS BUT ARE PROFOUNDLY ANTIDEMOCRATIC EVENTUALLY SUCH STATES
MAY BECOME DEMOCRATIC BUT THAT IS HIGHLY SPECULATIVE THERE ARE PLENTY OF
OTHER AUTHORITARIAN COUNTRIES THAT HAVE POOR ECONOMIES THAT ARE NO
ADVERTISEMENT FOR PROF BARRO'S THESIS THERE IS NO GUARANTEE THAT ECONOMIES
MUST CONTINUE TO GROW UNDER AUTHORITARIANISM OR THAT THEY WOULD CEASE TO
GROW UNDER DEMOCRACY

PROF GERALD SCULLY OF THE UNIVERSITY OF TEXAS HAS PROVIDED CONVINCING DATA
TO SHOW THAT IN THE AGGREGATE OVER THE LONG RUN DEMOCRACIES OUTPERFORM
DICTATORSHIPS ECONOMICALLY

DEMOCRACY'S TENDENCY TO PROTECT PROPERTY RIGHTS AND THE RULE OF LAW BOOSTS
INVESTOR CONFIDENCE BY PROVIDING SOME SENSE OF ECONOMIC SECURITY THIS
CONFIDENCE IS IMPOSSIBLE WHERE PRIVATE PROPERTY IS TOLERATED AS THE SUBJECT
OF A DICTATOR'S WHIM AND NOT SECURED THROUGH LEGALLY ENTRENCHED RIGHTS

WITHOUT DEMOCRATIC CHECKS ON POWER DICTATORS BEHAVE IN ACCORDANCE WITH
THEIR OWN VALUES ALONE PROF BARRO ASSUMES THAT THE AUTHORITARIAN IS
BENIGN HOWEVER DICTATORSHIPS OFTEN ACCOMPANY TOTALLY CENTRALIZED ECONOMIES
THAT REQUIRE HARSH CONTROLS AND BERLIN WALLS TO MAINTAIN THEMSELVES GIVEN
THE LACK OF COUNTERVAILING POLITICAL PRESSURES UNDER MOST DICTATORSHIPS
NOTHING CAN STOP THE DICTATOR HIS FAMILY FRIENDS SECRET POLICE AND
MILITARY FROM CAPTURING THE ECONOMY FOR THEMSELVES THIS CORRODES GROWTH AND
EFFICIENCY

MANY EAST EUROPEAN AND AFRICAN COUNTRIES BELIEVE THERE IS A RELATIONSHIP
BETWEEN DEMOCRACY MARKET ECONOMICS AND GROWTH CONSEQUENTLY MANY NATIONS
HAVE ABANDONED ONEPARTY SYSTEMS AND STATIST ECONOMIES SINCE 1989 THEY
WON'T ALL SUCCEED WITH EITHER POLITICAL FREEDOM OR ECONOMIC GROWTH BUT
AFTER THE FAILURES OF THE COMMUNIST MODEL NONE OF THEM BELIEVES THAT
AUTHORITARIANISM WILL BRING PROSPERITY 9401240022 940124 INTERNATIONAL 
METALLGESELLSCHAFT BILL PAYMENTS

FRANKFURT METALLGESELLSCHAFT AG THE TROUBLED GERMAN METALS AND TRADING
COMPANY SAID IT RESUMED BILL PAYMENTS INTERRUPTED BY RECENT LIQUIDITY
TROUBLES

WITH THE ADOPTION OF THE RESTRUCTURING PLAN BY THE CREDITOR BANKS THE
TECHNICAL PRECAUTIONS FOR A RESUMPTION OF PAYMENTS WERE CONCLUDED THE
COMPANY SAID THEREFORE THE TEMPORARY PAYMENT HALT IS LIFTED 9401240021
940124 NEGOTIATORS FAIL TO CUT OUTPUT OF ALUMINUM  TALKS END
AFTER SIX DAYS WITH ONLY A PROPOSAL MORE BARGAINING SLATED  BY
WALL STREET JOURNAL REPORTERS MARTIN DUBOIS IN BRUSSELS AND ERLE NORTON
IN PITTSBURGH

TRADE NEGOTIATORS ENDED SIX DAYS OF TALKS WITH A PROPOSAL BUT STILL NO
AGREEMENT TO SLASH WORLDWIDE ALUMINUM OUTPUT DELAYING HOPES FOR A QUICK
TURNAROUND IN THE SEVERELY DEPRESSED INDUSTRY

WESTERN ALUMINUM PRODUCERS EXPRESSED HOPES BEFORE THE SECRETIVE MEETING
STARTED THAT DELEGATES FROM THE US THE EUROPEAN UNION RUSSIA CANADA
AUSTRALIA AND NORWAY WOULD AGREE TO CUT GLOBAL ALUMINUM OUTPUT AS MUCH AS
11 OR TWO MILLION TONS AND OBTAIN AN EXPLICIT COMMITMENT FROM RUSSIA TO
CURB ITS ALUMINUM EXPORTS ONETHIRD OR 500000 TONS INSTEAD DELEGATES
AGREED TO AIM FOR AN ACCORD ON A PROPOSED MEMORANDUM OF UNDERSTANDING BY
FRIDAY AND TO MEET AGAIN IN CANADA AT THE END OF NEXT MONTH ACCORDING TO A
WRITTEN STATEMENT ISSUED BY THE EUROPEAN COMMISSION THE CONTENTS OF THE
PROPOSED MEMORANDUM WEREN'T DISCLOSED

ANALYSTS WERE ENCOURAGED BY THE FACT THAT GOVERNMENT OFFICIALS AT LEAST WERE
CONSIDERING THE MEMORANDUM AND THAT RUSSIA HAD AGREED TO SHARE PRODUCTION
DATA WITH THE WEST THE FACT THAT THE EU STATEMENT ESTIMATED OVERPRODUCTION
AT 15 MILLION TO TWO MILLION TONS WAS SEEN AS AN INDICATION THAT THE
NEGOTIATORS WERE AIMING FOR CUTS OF A SIMILAR LEVEL

THERE'S NOTHING IN HERE THAT MAKES YOU THINK THEY'RE NOT GOING DOWN THE
ROAD TOWARD PRODUCTION CUTS SAID PETER ANKER AN ANALYST WITH NATWEST
SECURITIES CORP IN NEW YORK IT JUST DOESN'T TELL YOU EXACTLY WHERE THEY
ARE ON THAT ROAD THE IMPORTANT THING HERE IS THAT THEY'RE STILL WORKING ON
A CONCLUSION

PERHAPS THE MAIN ACHIEVEMENT IN THE TALKS WHICH INITIALLY WERE SCHEDULED
TO LAST FOR ONLY TWO DAYS WAS TO KEEP RUSSIA AT THE NEGOTIATING TABLE
DESPITE THE COUNTRY'S FLAGGING COMMITMENT TO MARKET REFORM ON FRIDAY
RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN DECLARED THAT BOOSTING INDUSTRIAL
PRODUCTION WAS ONE OF HIS NEW GOVERNMENT'S PRIORITIES SEVERAL INDUSTRY
OFFICIALS MONITORING THE TALKS IN BRUSSELS LAST WEEK EXPRESSED RELIEF THE
RUSSIANS DIDN'T WALK AWAY

US AND EUROPEAN ALUMINUM PRODUCERS ARE BLAMING RUSSIA FOR THE OVERCAPACITY
PROBLEM SINCE THE COLLAPSE OF THE SOVIET UNION AND ITS METALHUNGRY
MILITARY MACHINE RUSSIAN EXPORTS HAVE SURGED TO AN ESTIMATED 15 MILLION
TONS LAST YEAR FROM 300000 TONS IN 1990 STOCKPILES MEANWHILE HAVE GROWN
TO AN ESTIMATED 45 MILLION TONS WORLDWIDE AND ALUMINUM PRICES HAVE
PLUNGED TO NEARRECORD LOWS

US PRODUCERS LED BY ALUMINUM CO OF AMERICA CHAIRMAN PAUL O'NEILL HAD
THREATENED TO FILE ANTIDUMPING ACTIONS AGAINST RUSSIAN EXPORTERS IF THE
BRUSSELS MEETING DIDN'T PROVE CONCLUSIVE MR O'NEILL DECLINED TO COMMENT
YESTERDAY OFFICIALS OF THE ALUMINUM ASSOCIATION WHICH REPRESENTS US
PRODUCERS WEREN'T AVAILABLE FOR COMMENT

ONE PERSON FAMILIAR WITH TALKS AMONG A GROUP OF SMALLER US ALUMINUM
COMPANIES SAID ITS MEMBERS WILL REVIEW A DRAFT ANTIDUMPING COMPLAINT THIS
WEEK

EUROPEAN SMELTERS IN TURN HAVE SAID THEY MAY SEEK TO EXTEND THE EU'S
180000TONAYEAR QUOTA FOR RUSSIAN ALUMINUM WHICH IS SCHEDULED TO EXPIRE
NEXT MONTH

GIVEN THE MEETING'S INCONCLUSIVE RESULT ALUMINUM TRADING ON COMMODITIES
MARKETS COULD BE NERVOUS TODAY POTENTIALLY UNDERMINING A RECENT PRICE
RECOVERY SPARKED BY EXPECTATIONS OF A PRODUCTIONCUT PACT ON THE LONDON
METAL EXCHANGE FRIDAY THE ALUMINUM BID PRICE ROSE 14 IN ERRATIC TRADING TO
1201 A TON BUOYED BY HOPES THAT THE BRUSSELS NEGOTIATORS WOULD REACH AN
ACCORD OVER THE WEEKEND

BUT AS LAST WEEK'S NEGOTIATIONS SHOWED REACHING A GLOBAL ACCORD IS A TALL
ORDER IN ADDITION TO THE POLITICAL PROBLEMS IN RUSSIA OFFICIALS CLOSE TO
THE TALKS LAST WEEK INDICATED THAT THERE HAD BEEN DIFFICULTIES IN AGREEING
ON HOW TO SHARE OUT THE BURDEN OF CUTBACKS AMONG RUSSIA THE US THE EU
AND OTHER PRODUCER REGIONS

RUSSIA IN PARTICULAR IS SEEKING WESTERN INVESTMENT IN RETURN FOR
CURTAILING ALUMINUM OUTPUT THE COUNTRY SAID IT NEEDS HELP TO MODERNIZE ITS
HEAVILY POLLUTING SMELTERS AND DEVELOP ALUMINUM CONSUMPTION IN THE CIVILIAN
SECTOR

BUT EVEN IF THE NEGOTIATIONS WHICH WERE LAUNCHED LAST SUMMER WERE TO YIELD
AN ACCORD MANY METALS TRADERS DOUBT IT WOULD WORK ONE KEY UNCERTAINTY IS
WHETHER THE RUSSIAN GOVERNMENT IS IN ANY POSITION TO CONTROL THE AMOUNT OF
ALUMINUM EXPORTED BY ITS HUGE SIBERIAN SMELTERS WHICH OPERATE
INDEPENDENTLY

IN ADDITION SEVERAL KEY ALUMINUMPRODUCING NATIONS SUCH AS BRAZIL
VENEZUELA THE UKRAINE AND THE PERSIAN GULF STATES AREN'T EVEN
PARTICIPATING IN THE EFFORT TO NEGOTIATE A GLOBAL OUTPUT ACCORD
9401240020 940124 INTERNATIONAL TOYOTA CREATES WORK CONTRACTS 
CHALLENGING LIFETIMEJOB SYSTEM  BY MICHAEL WILLIAMS STAFF
REPORTER OF THE WALL STREET JOURNAL

TOKYO JAPAN'S STRAPPED CORPORATIONS ARE SEEKING CREATIVE WAYS TO SKIRT
THE NATION'S COSTLY LIFETIMEEMPLOYMENT SYSTEM WHILE STILL AVOIDING LAYOFFS

IN ONE OF THE MOST STRIKING EXAMPLES TO DATE TOYOTA MOTOR CORP SAID FRIDAY
THAT IT WILL CREATE A NEW CATEGORY OF TEMPORARY PROFESSIONAL WORKERS FOR ITS
JAPANESE LABOR FORCE TOYOTA WILL TAKE ON AUTOMOTIVE DESIGNERS FOR A LIMITED
NUMBER OF ONEYEAR CONTRACTS INSTEAD OF OFFERING THEM A CUSTOMARY LIFELONG
JOB THE COMPANY WILL PAY THE DESIGNERS A HIGH ANNUAL SALARY BASED ON
INDIVIDUAL MERIT RATHER THAN USING THE TRADITIONAL MODE OF LINKING PAY TO
SENIORITY AND COMPANY PERFORMANCE

TOYOTA'S ANNOUNCEMENT OF THE PLAN READS IN PLACES LIKE A MANIFESTO AGAINST
JAPAN'S LABOR PRACTICES THE PRACTICE OF LONGTERM EMPLOYMENT  
CONTRIBUTED SIGNIFICANTLY TO JAPAN'S ECONOMIC GROWTH AND IS EXPECTED TO
CONTINUE POSITIVELY IN THE FUTURE TOYOTA'S STATEMENT SAID AS THE
BUSINESS CONDITIONS SURROUNDING JAPANESE CORPORATIONS UNDERWENT RADICAL
CHANGE HOWEVER IT WAS INEVITABLE THAT THE RIGID ORGANIZATIONAL STRUCTURE
OF THE PAST WOULD IMPOSE LIMITS ON CORPORATE GROWTH

TOYOTA'S PROGRAM ISN'T THE FIRST OF ITS KIND IN JAPAN AND IT WILL START
SMALL INVOLVING A HANDFUL OF WORKERS IN ITS FIRST YEAR BUT TOYOTA
PRESIDENT TATSURO TOYODA SAID THE PLAN MARKS THE START OF A BROADER EFFORT
TO GRADUALLY INCREASE THE NUMBER OF WHITECOLLAR CONTRACT WORKERS THE
COMPANY EMPLOYS IN JAPAN

MORE IMPORTANT TOYOTA'S REPUTATION AS ONE OF JAPAN'S LEADING AND MOST
CONSERVATIVE INDUSTRIAL CORPORATIONS MEANS THE PLAN COULD HAVE A BIG
INFLUENCE ON THE LABOR PRACTICES OF OTHER JAPANESE CONCERNS

THIS IS PART OF A LARGE TREND SAID SATORU ISHIKAWA OF THE INSTITUTE OF
LABOR ADMINISTRATION A LABORRESEARCH ORGANIZATION MR ISHIKAWA NOTED THAT
IN RECENT YEARS JAPANESE COMPANIES HAVE STEADILY INCREASED THEIR USE OF
WHITECOLLAR CONTRACT WORKERS WHO ARE EASIER TO TERMINATE THAN LIFETIME
EMPLOYEES

THE USE OF TEMPORARY BLUECOLLAR WORKERS HAS LONG BEEN MUCH MORE WIDESPREAD
LAST YEAR 19 OF JAPANESE COMPANIES EMPLOYED CONTRACT WORKERS OF BOTH TYPES
UP FROM 14 IN 1989 ACCORDING TO THE INSTITUTE

LIKE OTHER JAPANESE MANUFACTURERS TOYOTA HAS LONG EMPLOYED FACTORY WORKERS
ON A CONTRACT BASIS THE TEMPORARY WORK FORCES ACT AS A SAFETY VALVE
SWELLING DURING PEAK PERIODS AND SHRINKING IN SLACK TIMES IN JUNE 1991
WHEN AUTO SALES WERE STRONG TOYOTA HAD 2618 SUCH WORKERS IN JAPAN TODAY
AFTER NEARLY THREE YEARS OF FALLING OUTPUT IT HAS CLOSE TO NONE

A GROWING NUMBER OF JAPANESE EXECUTIVES ARE VENTING FRUSTRATION WITH THE
LIFETIME EMPLOYMENT SYSTEM THE PRACTICE INHIBITS COMPANIES FROM QUICKLY
REDUCING THEIR BLOATED WHITECOLLAR WORK FORCES ONE BIG REASON WHY JAPAN
IS IN THE MIDST OF ITS FOURTHSTRAIGHT YEAR OF FALLING CORPORATE EARNINGS

EARLIER LAST WEEK KEIZAI DOYUKAI A LEADING BUSINESS ORGANIZATION RELEASED
A SURVEY SHOWING THAT 41 OF TOP JAPANESE EXECUTIVES THINK JAPAN MUST
THOROUGHLY REVISE THE LIFETIME EMPLOYMENT SYSTEM

TOYOTA ALSO USED ITS ANNOUNCEMENT TO TRY SPIFFING UP ITS SOMEWHAT STODGY
IMAGE THE NEW DESIGNERS WILL BE EXPECTED TO PROPOSE NOVEL DESIGNS AND
REVITALIZE THE WHOLE COMPANY WITH UNCONVENTIONAL IDEAS THE COMPANY SAID
THEIR WORK HOURS WILL BE UNUSUALLY FLEXIBLE BY JAPANESE STANDARDS THE
DESIGNERS NEED ONLY SHOW UP AT WORK ONCE A DAY ACCORDING TO THE JOB
DESCRIPTION

TOYOTA SAID IT WILL HIRE BETWEEN ONE AND FIVE VEHICLE DESIGNERS TO WORK AT
ITS HEAD OFFICE IN TOYOTA CITY JAPAN SOMETIME AFTER MAY 1 THEY WILL START
AT AN ANNUAL SALARY OF 10 MILLION YEN 89800 9401240019 940124
CHAIRMAN'S STATEMENT ON ELF'S PRIVATIZATION ELICITS TERSE RESPONSE 
 SPECIAL TO THE WALL STREET JOURNAL

PARIS THE FRENCH ECONOMICS MINISTRY DELIVERED WHAT APPEARED TO BE A RAP
ON THE KNUCKLES FRIDAY TO THE CHAIRMAN OF SOCIETE NATIONALE ELF AQUITAINE
FOR REMARKS RELATED TO THE OIL COMPANY'S IMPENDING PRIVATIZATION

A PRELIMINARY PLACEMENT BEGAN THURSDAY BUT THE SHARE PRICE AND THE DATE OF
THE OFFER PERIOD HAVEN'T BEEN ANNOUNCED

IN A TESTY COMMUNIQUE THAT MENTIONED NO NAMES THE MINISTRY SAID FOLLOWING
ASSORTED INFORMATION APPEARING IN THE PRESS THE MINISTER STRESSES THAT THE
DATE FOR LAUNCHING THE PUBLIC SHARE OFFER OF ELF AQUITAINE SHARES HASN'T
BEEN FIXED YET

THE MINISTRY SAID THE PRICE OF ELF SHARES WILL BE SET AT THE START OF THE
PUBLIC OFFER BY ORDER OF THE ECONOMICS MINISTRY ADDING THAT ANY
INDICATION ON THE PRICE PRELIMINARY TO THE DECISION OF THE PRIVATIZATION
COMMISSION AND THE MINISTERIAL ORDER SHOULD BE CONSIDERED NULL AND HAVING
NEVER EXISTED

PHILIPPE JAFFRE PICKED BY THE GOVERNMENT FROM CREDIT AGRICOLE TO HELP
PREPARE FOR THE SALE OF THE STATECONTROLLED OIL COMPANY REPORTEDLY SAID ON
FRANCE 2 TELEVISION FRIDAY I THINK THE PRICE OF THE SHARES WILL BE KNOWN
IN TWO WEEKS

LOOKING AT EARLIER PRIVATIZATIONS THE EARLY PLACEMENT FOR RHONEPOULENC SA
WAS ANNOUNCED OCT 27 AND THE OPERATION STARTED NOV 16 THE ELF OPERATION
IS SCHEDULED TO START BY APRIL 20 AT THE LATEST ELF SHARES CLOSED FRIDAY
DOWN 33 FRANCS 56 CENTS AT 4185 FRANCS 7080 A SHARE ON THE PARIS
STOCK EXCHANGE

THE SPOKESMAN AT ELF SAID NO ONE AT THE COMPANY COULD CONFIRM MR JAFFRE'S
STATEMENTS NOR WOULD ANYONE COMMENT ON THE COMMUNIQUE BUT A MINISTRY
SOURCE SAID THAT MR JAFFRE'S REMARKS APPEARED TO BE THE REASON FOR THE
COMMUNIQUE 9401240018 940124 HONG KONG INFLATION EXPANDS

HONG KONG THE HONG KONG GOVERNMENT SAID THAT ITS MAIN INFLATION GAUGE
EXPANDED TO 86 IN DECEMBER BUT THAT THE RATE CAME IN AT ITS TARGET RATE
OF 85 FOR THE FULL YEAR

THE 1993 AVERAGE FOR THE CONSUMER PRICE INDEX A MEASURE WAS SIGNIFICANTLY
LOWER THAN 94 IN 1992 AND 12 IN 1991 THE GOVERNMENT SAID

IN DECEMBER THE RATE EDGED HIGHER ON THE BACK OF FASTER RISES IN FOOD
PRICES PARTICULARLY SALTWATER FISH AND FRESH FRUITS MUCH OF HONG KONG'S
FOOD IS IMPORTED FROM MAINLAND CHINA 9401240017 940124 WHO'S NEWS 
DIED

RAYMOND C FOSTER JR 74 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
STONE & WEBSTER INC SATURDAY IN STUART FLORIDA OF AN ANEURISM
9401240016 940124 WHO'S NEWS EG&G INC

EG&G INC WELLESLEY MASS RICHARD P DELIO RESIGNED AS CHIEF FINANCIAL
OFFICER OF THIS DESIGNER AND PRODUCER OF SCIENTIFIC EQUIPMENT AND SERVICES
TO PURSUE OTHER INTERESTS THE COMPANY SAID JOHN F ALEXANDER CORPORATE
CONTROLLER WILL ASSUME THE RESPONSIBILITIES AS ACTING CHIEF FINANCIAL
OFFICER MR DELIO JOINED EG&G IN 1977 AS A GROUP CONTROLLER AND SINCE THEN
HAS HELD SEVERAL OTHER POSITIONS IN 1991 HE WAS NAMED SENIOR VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER 9401240015 940124 GATT PACT'S 
PRIVATESECTOR REVIEWS MIXED  US BUSINESSES ENDORSE ACCORD
WISH FOR MORE LABOR CRITICIZES DEAL  BY BOB DAVIS STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON COMMITTEES REPRESENTING A BROAD CROSSSECTION OF US BUSINESS
ENDORSED THE WORLD TRADE PACT NEGOTIATED LAST MONTH BUT EXPRESSED
CONSIDERABLE DISAPPOINTMENT THAT THE ACCORD DIDN'T ACCOMPLISH MORE

AT THE SAME TIME A COMMITTEE REPRESENTING US LABOR BITTERLY CRITICIZED
THE TRADE DEAL NEGOTIATED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON
TARIFFS AND TRADE IN GENEVA THE FAILURE OF THE ACCORD TO ADDRESS THE
SOCIAL SIDE OF THE PRODUCTION EQUATION WORKER RIGHTS AND STANDARDS AND
ENVIRONMENTAL PROTECTIONIS A MAJOR SHORTCOMING SAID A LABOR ADVISORY
COMMITTEE

THE COMMITTEE REPORTS REPRESENT THE MOST DETAILED EVALUATION THE PRIVATE
SECTOR WILL MAKE OF THE GATT PACT THE TWODOZEN PANELS FILED THEIR
COMMENTS TOTALING MORE THAN 1000 PAGES BY JAN 15 AS REQUIRED BY US
TRADE LAW BUT THE REPORTS WON'T BE DISTRIBUTED PUBLICLY UNTIL THIS WEEK

THE COMMENTS OF THE PANELS WHICH REPRESENT MANUFACTURING AGRICULTURE AND
SERVICE INDUSTRIES FORESHADOW THE CONGRESSIONAL FIGHT OVER THE GATT PACT
LABOR AND ENVIRONMENTAL GROUPS ARE EXPECTED TO OPPOSE THE AGREEMENT THOUGH
NOT WITH THE VEHEMENCE WITH WHICH THEY ATTACKED THE NORTH AMERICAN FREE
TRADE AGREEMENT AND US BUSINESSES ARE EXPECTED TO BE SUPPORTIVE BUT NOT
ESPECIALLY ENTHUSIASTIC FEW INDUSTRIES ARE LIKELY TO CAMPAIGN AGAINST THE
ACCORD HOWEVER ALL OF THE PARTIES WILL BE LOBBYING IN CONGRESS FOR
LEGISLATION THAT WILL COMMIT THE US TO INTERPRET THE GATT PACT IN WAYS
THEY FIND ADVANTAGEOUS

EVEN THE MOTION PICTURE ASSOCIATION OF AMERICA WHICH WAS SORELY
DISAPPOINTED THAT THE US COULDN'T GET THE EUROPEAN UNION TO DISMANTLE
QUOTAS ON FOREIGN BROADCASTS DIDN'T OPPOSE THE GATT ACCORD INSTEAD
ASSOCIATION PRESIDENT JACK VALENTI COUCHED HIS COMPLAINTS IN A PANEL REPORT
AS A GRIEVANCE WHICH HAS TO BE ILLUMINATED US TRADE OFFICIALS HAVE
HINTED THAT THEY WOULD TAKE RETALIATORY ACTION AGAINST THE EU BUT SO FAR
THE ADMINISTRATION HASN'T EVEN MET TO CONSIDER ACTION

THE BIGGEST COMMITTEE WHICH ADVISES THE PRESIDENT ON TRADE POLICY AND IS
PACKED WITH THE US'S LARGEST CORPORATIONS SAID THAT ON BALANCE THE PACT
ADVANCES US ECONOMIC INTERESTS BUT THE PANEL SAID IT WAS DISAPPOINTED
THAT MANY OBJECTIVES WERE NOT FULLY ACHIEVED THE PANEL CITED A LACK OF
PROGRESS IN FINANCIAL BASIC TELECOMMUNICATIONS AND AUDIOVISUAL SERVICES AS
WELL AS INSUFFICIENT TARIFF REDUCTIONS IN WOOD PRODUCTS NONFERROUS METALS
AND CHEMICALS HOWEVER IT NOTED THAT TARIFF NEGOTIATIONS WERE STILL
CONTINUING AND THE US IS PRESSING FOR LARGER CUTS

ON THE POSITIVE SIDE THE TRADE PANEL SAID THE PACT ELIMINATED TARIFFS IN
MANY COUNTRIES AND ON A NUMBER OF INDUSTRIES IN WHICH THE US IS HIGHLY
COMPETITIVE BEER PHARMACEUTICALS FURNITURE PAPER TOYS AND MEDICAL
EQUIPMENT OVERALL TARIFFS IN DEVELOPED COUNTRIES WERE CUT BY AN AVERAGE OF
33 THE REDUCTIONS SHOULD INCREASE US EXPORTS AND LEAD TO LOWER PRICES
AND MORE CONSUMER CHOICE IN THE DOMESTIC MARKETPLACE THE REPORT SAID

IN AGRICULTURE THE COMMITTEE PRAISED LIMITATIONS ON EXPORT SUBSIDIES AND
THE DECISION BY JAPAN AND SOUTH KOREA TO OPEN THEIR RICE MARKETS TO IMPORTS
WITH PATENTS AND COPYRIGHTS THE COMMITTEE COMMENTED THE PACT REPRESENTS
BOTH SUCCESS AND FAILURE THE PANEL PRAISED THE GLOBAL COMMITMENTS TO
PROTECT INTELLECTUAL PROPERTY BUT PANNED THE LENGTH OF THE TRANSITION
PERIODS BEFORE DEVELOPING COUNTRIES MUST ENFORCE PATENTS FOR INSTANCE THE
PACT ALLOWS INDIA A BIG CENTER FOR PIRATED DRUGS TO CONTINUE FLOUTING
PHARMACEUTICAL PATENTS FOR ANOTHER DECADE

PANELS REPRESENTING THE CHEMICAL AND PAPER INDUSTRIES SAID THEY CURRENTLY
OPPOSE THE MAIN PORTION OF THE PACT BECAUSE THE TARIFF CUTS WERE INADEQUATE
NEGOTIATIONS IN THOSE AREAS ARE EXPECTED TO CONTINUE UNTIL THE END OF MARCH
THE GATT PACT WILL BE SIGNED BY TRADE NEGOTIATORS IN MARRAKECH MOROCCO ON
APRIL 15 THE ACCORD WILL THEN GO TO CONGRESS AND OTHER LEGISLATIVE BODIES
FOR RATIFICATION

A REPORT BY THE US PAPER INDUSTRY SAID THAT THE WORLD TRADING AGREEMENT
NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE GENERALLY MEETS
THE INDUSTRY'S OBJECTIVES BUT THAT THE INDUSTRY STILL HAS SOME
RESERVATIONS AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE PAPER INDUSTRY
OPPOSES THE ACCORD 9401240014 940124 BOYS TOWN SUES GROUP OVER LOW RATING
 DUE TO THE CHARITY'S HUGE ENDOWMENT  BY PAMELA SEBASTIAN STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK IT AIN'T HEAVY IT'S OUR ENDOWMENT

BOYS TOWN THE NEBRASKA INSTITUTION MADE FAMOUS BY A HOLLYWOOD MOVIE AND
SYMBOLIZED BY A BOY TOTING HIS BROTHER IS SUING A NEW WATCHDOG GROUP FOR
BESMIRCHING THE CHARITY'S NAME

IN A SUIT FILED IN FEDERAL COURT IN BROOKLYN FATHER FLANAGAN'S BOYS' HOME
KNOWN AS BOYS TOWN ALLEGES THAT THE ST LOUISBASED AMERICAN INSTITUTE OF
PHILANTHROPY AND ITS PRESIDENT DANIEL BOROCHOFF DEFAMED AND DAMAGED THE
CHARITY BY GIVING IT A GRADE OF F IN A RATING GUIDE AND BY LISTING IT AS
ONE OF THE LEAST NEEDY CHARITIES DUE TO AN ENDOWMENT FUND OF ABOUT A HALF
BILLION DOLLARS

THE UNUSUAL ACTION SPOTLIGHTS THE DELICATE PHILANTHROPIC ISSUE OF PUBLIC
FUNDRAISING BY CHARITIES THAT HAVE BIG ASSET HOLDINGS IN ENDOWMENTS AND
OTHER RESERVES THE SUIT ALSO MARKS A RARE MOVE BY A CHARITY TO OPENLY BRAWL
WITH A GADFLY

UNDERLYING THE CONFLICT IS THE BROADER ISSUE OF ASSET ACCUMULATION IN THE
NONPROFIT WORLD FUNDRAISING WITH A BIG SURPLUS IS A TOUCHY ISSUE SAYS
ELAINE ALLEN HEAD OF NOTFORPROFIT ORGANIZATIONS AT ERNST & YOUNG THE
BIGGEST CONCERN SHE SAID CENTERS ON TAKING GIFTS FROM A PUBLIC THAT
BELIEVES IT IS FUNDING IMMEDIATE PROGRAMS WHILE THE FUNDS MAY BE
SQUIRRELED AWAY WITHOUT A CLEAR PLAN FOR SPENDING THEM

ACCUMULATED ASSETS IN THE FORMS OF TRUE ENDOWMENTS BOARDDESIGNATED
ENDOWMENTS RESTRICTED FUNDS UNRESTRICTED FUNDS AND RESERVES RAISE ISSUES
THAT HAVE KEPT ACCOUNTANTS HUMMING FOR YEARS IN DECIDING HOW TO TREAT THE
SUMS NEW ACCOUNTING STANDARDS FOR NONPROFITS NEXT YEAR WILL REQUIRE
CLEARER DISTINCTIONS BETWEEN RESTRICTED AND UNRESTRICTED FUNDS

MR BOROCHOFF STARTED THE LATEST FRACAS IN NOVEMBER WHEN HE ISSUED HIS FIRST
RATINGS GUIDE HEADLINED GIVERS BEWARE ASSIGNING LETTER GRADES TO NEARLY
300 CHARITIES BASED ON THEIR REQUIRED FINANCIAL FILINGS AND RANKING THEM
BASED ON HOW MUCH THEY SPEND ON FUNDRAISING AND ON PROGRAMS HE ALSO NAMED
THE LEAST NEEDY CHARITIES CALCULATING THE NUMBER OF YEARS FUNDS ON HAND
WOULD LAST BOYS TOWN RANKED SIXTH HE CALCULATED WITH 5678 MILLION THAT
WOULD LAST 59 YEARS HE GAVE CHARITIES WITH FIVE YEARS OR MORE OF FUNDS ON
HAND AN OVERALL F RATING

SHRINERS HOSPITAL FOR CRIPPLED CHILDREN TOOK FIRST PLACE WITH 44 BILLION
OR 135 TIMES ANNUAL SPENDING WE WERE BOTHERED BY THE ARTICLE SAID A
SHRINERS OFFICIAL WHO CALLED THE CHARACTERIZATION UNFAIR BUT ADDED THAT NO
LEGAL ACTION WAS LIKELY IF YOU WANT TO TOTALLY DISREGARD INFLATION
DISREGARD EXPANDING SERVICES AND GO OUT OF BUSINESS IN 13 YEARS I GUESS
HE'S RIGHT HE SAID THE GROUP OPERATES 19 HOSPITALS FOR CRIPPLED CHILDREN
AND THREE BURN INSTITUTES

THE COUNCIL OF BETTER BUSINESS BUREAUS' PHILANTHROPIC ADVISORY SERVICE IN
WASHINGTON SAYS BOYS TOWN MEETS ITS STANDARDS THE NATIONAL CHARITIES
INFORMATION BUREAU IN NEW YORK DOESN'T CURRENTLY HAVE A REPORT ON BOYS TOWN
SAYING IT HAS INSUFFICIENT INFORMATION AS A GENERAL RULE OF THUMB THE
BUREAU CONSIDERS HAVING ASSETS ON HAND TO COVER TWO YEARS' WORTH OF
OPERATING EXPENSES TO BE A REASONABLE CUSHION

REPRESENTED BY THE MANHATTAN LAW FIRM MILBANK TWEED HADLEY & MCCLOY BOYS
TOWN CHARGED THAT THE WATCHDOG REPORT IMPLIES SEVERAL CORRUPT AND WASTEFUL
PRACTICES AND HAS ALREADY COST THE GROUP SOME CONTRIBUTIONS THE SUIT SEEKS
2 MILLION IN COMPENSATORY DAMAGES AS WELL AS UNSPECIFIED PUNITIVE DAMAGES
AS WELL AS AN ORDER BLOCKING MR BOROCHOFF FROM DISTRIBUTING THE REPORT

MR BOROCHOFF FOR HIS PART SAID WE HAVE A RIGHT TO SCALE THEM AND LEAVE
IT TO THE PUBLIC IF THEY WANT TO GIVE HE NOTED THAT HIS REPORT DOES POINT
OUT THE POSITIVE STUFF THAT THEY GIVE A LOT OF MONEY TO PROGRAMS

IT ISN'T THE FIRST TIME THAT BOYS TOWN HAS TAKEN HEAT FOR ITS ENDOWMENT IN
1972 AFTER CRITICISM THAT THE ORGANIZATION WAS SOLICITING MONEY EVEN THOUGH
IT HAD ABOUT 200 MILLION IN A BOARDDESIGNATED ENDOWMENT FUND BOYS TOWN
VIGOROUSLY REVAMPED ITS FINANCES AND ITS CHILDSERVICE PROGRAMS TODAY THE
76YEAROLD CHARITY SERVES OVER 17000 CHILDREN IN NINE STATES AND THE
DISTRICT OF COLUMBIA WITH RESIDENTIAL CARE A NEBRASKA HOSPITAL AND OTHER
PROGRAMS FATHER FLANAGAN'S FOUNDATION FUND INC WHICH CONTAINS THE
ENDOWMENT FUND CONTRIBUTES ABOUT 30 TO 40 OF THE BOYS TOWN ANNUAL
EXPENDITURES OF ABOUT 80 MILLION A YEAR BOYS TOWN SAYS IT HASN'T PUT ANY
GENERAL GIFTS INTO THE ENDOWMENT FUND SINCE 1971

AT ISSUE IN THE LAWSUIT IS THE PUBLIC'S INTERPRETATION OF THE GRADING SYSTEM
MR BOROCHOFF USED MR BOROCHOFF GAVE BOYS TOWN THE F SOLELY BECAUSE THE
CHARITY'S ACCUMULATED ASSETS SURPASSED A MAXIMUM AMOUNT HE DEEMED EXCESSIVE
 FIVE YEARS' WORTH OF OPERATING FUNDS THE LAWSUIT CHARGES THAT DONORS
READ NEWS STORIES ON THE REPORT ISSUED LAST NOVEMBER AND INTERPRETED THE F
TO MEAN BOYS TOWN MIGHT BE RELATED TO GENERAL REFERENCES ELSEWHERE IN THE
REPORT TO OUTRIGHT CORRUPTION AT UNSPECIFIED CHARITIES

MR PETER SAID HE MIGHT HAVE LIVED WITH THE BOROCHOFF RATING IF THE REPORT
HAD FURTHER EXPLAINED THAT THERE ARE PHILOSOPHICAL DIFFERENCES ABOUT THE
CRITERIA SOME DONORS FOR INSTANCE PREFER GIVING TO WELLENDOWED
WELLRUN GROUPS BECAUSE THEY BELIEVE THOSE ORGANIZATIONS WILL BE AROUND
FOREVER WHILE OTHER DONORS PREFER HELPING OUT HANDTOMOUTH
ORGANIZATIONS HE SAID 9401240013 940124 BETA WELL ANNOUNCES 2
ACQUISITIONS LIFTING PRICE OF STOCK BY 14

LEDUC ALBERTA BETA WELL SERVICE INC'S BUFFETED STOCK REGAINED LOST
GROUND FRIDAY AFTER THE COMPANY UNVEILED AN AGREEMENT TO ACQUIRE PART OF A
THIRD OILPRODUCING PROJECT IN THE FORMER SOVIET UNION AND SAID IT HAD
ACQUIRED A CANADIAN COMPETITOR

THE OILFIELD SERVICES COMPANY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE
A 25 INTEREST IN A JOINT VENTURE IN THE STAVRAPOL REGION OF RUSSIA THE
TRANSACTION IS EXPECTED TO CLOSE WITHIN A FEW WEEKS IT SAID THE PROJECT'S
AIM IS TO BOOST PRODUCTION FROM 18 OIL FIELDS THAT CURRENTLY HAVE 700 WELLS

EARLIER THIS MONTH BETA WELL SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE
JOINTVENTURE INTERESTS IN AN 800WELL OIL PROJECT IN KAZAKHSTAN AND IN AN
OIL PROJECT IN THE KOMI REGION OF RUSSIA

BETA WELL SAID IT WILL ACQUIRE ITS INTEREST IN THE STAVRAPOL PROJECT FROM
CLOSELY HELD GENESIS EURASIA CORP HOUSTON WHICH PRESENTLY HOLDS 50 OF
THE JOINT VENTURE IT SAID IT WILL INVEST AN INITIAL US25 MILLION IN THE
PROJECT AND AFTER THAT WILL SHARE FURTHER PROJECT COSTS WITH GENESIS

SEPARATELY BETA WELL SAID IT PURCHASED CLOSELY HELD SUNDOWN WELL SERVICE
LTD FOR 32 MILLION CANADIAN DOLLARS US24 MILLION BETA SAID SUNDOWN IS
A BROOKS ALBERTA OILFIELD SERVICES COMPANY WITH 11 SERVICE RIGS

BETA WELL SHARES CLOSED AT 13625 FRIDAY UP 1625 OR 14 IN COMPOSITE
TRADING ON THE AMERICAN STOCK EXCHANGE

EARLIER LAST WEEK THE COMPANY'S SHARE PRICE FELL MORE THAN 14 AFTER THE
COMPANY CONFIRMED THAT IT HAD LOST A LARGE WELLSERVICING CONTRACT IN
WESTERN SIBERIA 9401240012 940124 GM RECALLS ALL 120000 '94 S10 TRUCKS
 TO FIX FUEL TANKS THAT FAILED US TEST  BY JOSEPH B WHITE 
STAFF REPORTER OF THE WALL STREET JOURNAL

DETROIT GENERAL MOTORS CORP TEMPORARILY HALTED PRODUCTION OF REDESIGNED
1994 S10 PICKUP TRUCKS AND THEN RECALLED ALL 120000 OF THE TRUCKS BUILT SO
FAR TO FIX DEFECTIVE FUEL TANKS THAT PUT THE VEHICLES OUT OF COMPLIANCE WITH
FEDERAL SAFETY STANDARDS

THE DEFECT WHICH MADE THE TRUCKS ILLEGAL TO SELL COULD LEAD TO GASOLINE
SPILLING FROM THE FUEL TANK IN A CRASH BY COINCIDENCE THAT'S THE PROBLEM
AT THE HEART OF A SEPARATE DISPUTE BETWEEN GM AND FEDERAL SAFETY REGULATORS
WHO SAY SOME FOUR MILLION OF GM'S 19731987 FULLSIZED PICKUPS ARE UNSAFE
BECAUSE THEY'RE PRONE TO LEAK FUEL AFTER SIDEIMPACT COLLISIONS NATIONAL
HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION STAFFERS HAVE RECOMMENDED A
RECALL OF THE OLDER TRUCKS BUT A FINAL DECISION RESTS WITH TRANSPORTATION
SECRETARY FEDERICO PENA

GM SAID IT'S UNAWARE OF ANY FUEL LEAKS OR ACCIDENTS RELATED TO THE DEFECTIVE
1994 CHEVY S10 AND GMC SONOMA SMALL TRUCKS BUT A GM SPOKESWOMAN
ACKNOWLEDGED FRIDAY WE DIDN'T NEED THIS TO HAPPEN TO THIS PRODUCT

THE NEW S10 PICKUP IS A CRUCIAL HIGHVOLUME PRODUCT IN A PROFITABLE
SEGMENT GM HAS TWO LARGE ASSEMBLY FACTORIES IN SHREVEPORT LA AND LINDEN
NJ DEDICATED TO THE VEHICLE JUST EIGHT DAYS AGO GM SETTLED A STRIKE AT
THE SHREVEPORT PLANT THAT COST NEARLY A WEEK'S PRODUCTION

GM SAID IT TOOK THE UNUSUAL STEPS TO CONTAIN ITS POTENTIAL LIABILITY AND
REASSURE SOME 53000 CUSTOMERS WHO HAVE ALREADY TAKEN DELIVERY OF NEW S10S
THAT THE VEHICLES WILL BE MADE ROADWORTHY IN ADDITION GM WILL FIX ANOTHER
67000 TRUCKS NOW IN INVENTORY BEFORE THEY ARE DELIVERED TO CUSTOMERS

GM HALTED PRODUCTION OF THE TRUCKS FOR A DAY LAST WEDNESDAY TO TRACK DOWN
THE PROBLEM ON THURSDAY THE COMPANY RESTARTED PRODUCTION USING PROPERLY
BUILT TANKS ON FRIDAY GM OFFICIALS BEGAN CALLING DEALERSHIPS DIRECTLY TO
EXPLAIN THE SITUATION LETTERS TO CUSTOMERS WON'T GO OUT UNTIL THIS WEEK GM
SAID

GM SAID IT LEARNED THE S10 TRUCKS FAILED TO MEET FEDERAL SAFETY STANDARDS
IN EARLY JANUARY AFTER OFFICIALS OF THE NHTSA CRASHTESTED ONE OF THE
TRUCKS AS PART OF THE TEST THE TRUCK WAS TIPPED OVER DURING THAT TEST
THE SAMPLE S10 TRUCK LEAKED FUEL FROM A JOINT THAT CONNECTS A VENT TO THE
FILLER TUBE OF THE GAS TANK

GM BLAMED THE DEFECT ON THE FUELTANK SUPPLIER'S FAILURE TO FOLLOW GM'S
SPECIFICATIONS IN ATTACHING THE VENT TO THE FILLER TUBE GM WOULDN'T NAME
THE TANK MAKER BUT THE SPOKESWOMAN SAID THE SUPPLIER WOULD BEAR THE COST OF
THE RECALL THE SPOKESWOMAN ALSO INSISTED THAT THE SUPPLIER'S FAILURE TO
FOLLOW GM'S SPECIFICATIONS WASN'T THE RESULT OF CORNERCUTTING IN THE FACE
OF GM'S CAMPAIGN TO SQUEEZE COSTS OUT OF ITS PURCHASING

THE 1994 S10'S FUEL TANK IS LOCATED INSIDE THE VEHICLE'S STEEL FRAME RAILS
IN CONTRAST THE OLD PICKUPS THAT ARE THE SUBJECT OF THE SEPARATE NHTSA
PROBE INTO FUEL LEAKAGE HAVE TANKS POSITIONED OUTSIDE THE STEEL FRAME RAILS
 A DESIGN NHTSA HAD INITIALLY APPROVED BUT NOW QUESTIONS 9401240011
940124 WR GRACE'S NATIONAL MEDICAL UNIT AGREES TO FIX PROBLEMS AT US
PLANTS  BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET
JOURNAL

WR GRACE & CO'S NATIONAL MEDICAL CARE INC UNIT UNDER SHARP PRODDING
FROM THE FOOD AND DRUG ADMINISTRATION AGREED TO CORRECT MANUFACTURING
PROBLEMS AT ITS FIVE US PRODUCTION FACILITIES

NATIONAL MEDICAL THE NATION'S BIGGEST PROVIDER OF DIALYSIS SERVICES AND
PRODUCTS PRESENTED THE CONSENT DECREE AS THE CULMINATION OF SIX MONTHS OF
COOPERATIVE EFFORT DURING WHICH IT DEMONSTRATED TO THE FDA THAT IT HAS
ENHANCED QUALITY CONTROL AT ITS PLANTS

BUT THE AGENCY GAVE A HARSH ASSESSMENT OF WHAT ONE OFFICIAL CHARACTERIZED AS
THE COMPANY'S RECORD OF CHRONIC PROBLEMS WITH QUALITY CONTROL WHICH
PROMPTED THE EXAMINATION

NATIONAL MEDICAL'S MANUFACTURING DEFICIENCIES HAVE CAUSED NUMEROUS PROBLEMS
THAT HAVE AFFECTED THE SAFETY AND QUALITY OF ITS PRODUCTS THE FDA SAID
ADDING THAT THE SHORTCOMINGS HAVE GENERATED 18 MEDICALDEVICE RECALLS SINCE
1987 NINE OF THEM IN THE PAST YEAR ALONE

IN THE CONSENT DECREE NATIONAL MEDICAL PLEDGED TO BRING THE FACILITIES INTO
COMPLIANCE WITH SOCALLED GOOD MANUFACTURING PRACTICE REQUIREMENTS THE PACT
LEAVES THE COMPANY'S DOMESTIC PRODUCTION INTACT AND APPEARS TO PAVE THE WAY
FOR NATIONAL MEDICAL TO RESUME IMPORTING PRODUCTS SOON FROM TWO OVERSEAS
PLANTS WHOSE OUTPUT THE FDA EARLIER BANNED

WHILE NATIONAL MEDICAL NEITHER ADMITTED NOR DENIED ANY WRONGDOING THE
DECREE SETTLED A LAWSUIT THAT THE US SIMULTANEOUSLY FILED AGAINST NATIONAL
MEDICAL AND THREE TOP OFFICERS IN FEDERAL COURT IN NEWARK NJ

UNDER THE DECREE NATIONAL MEDICAL'S FACILITIES CAN CONTINUE TO OPERATE AND
WILL BE EXAMINED ON A PRESET SCHEDULE ALREADY UNDER WAY IF THE PLANTS DON'T
PASS MUSTER THE CONSENT DECREE SAYS THEY COULD BE ORDERED CLOSED

THE FDA NOTED THAT IT HAS BEEN NEGOTIATING WITH THE COMPANY FOR SEVERAL
MONTHS AND THAT MANY OF THE MANUFACTURING SHORTCOMINGS HAVE BEEN CLEARED
UP

WHILE NATIONAL MEDICAL RECOGNIZED THE NEED TO IMPROVE ITS MANUFACTURING
PRACTICES GRACE SAID AT NO TIME DID THEIR MANUFACTURING PRACTICES
ENDANGER THE LIVES OF ITS PATIENTS AND AT NO TIME WAS NATIONAL MEDICAL
CHARGED BY FDA OR OTHER PARTIES WITH DOING SO

BUT IN AN INTERVIEW RONALD JOHNSON DIRECTOR OF COMPLIANCE FOR THE FDA'S
CENTER FOR MEDICAL DEVICES PRESENTED A DARKER PICTURE NATIONAL MEDICAL HAS
HAD A REAL PROBLEM FOR THE PAST FOUR TO FIVE YEARS HE SAID IT WASN'T
JUST ONE FACILITY WITH A PROBLEM IT WAS MULTIPLE FACILITIES IN THIS COUNTRY
AND OUTSIDE AND WE BELIEVE THAT WAS REFLECTIVE OF A CORPORATEWIDE ATTITUDE
TOWARD COMPLIANCE

AFTER LETTERS TO INDIVIDUAL FACILITIES FAILED TO YIELD SATISFACTORY
CORRECTIVE ACTION HE SAID WE FELT WE HAD TO BE MORE AGGRESSIVE TO GET THE
COMPANY'S ATTENTION

THE FDA OFFICIAL NOTED THAT NO PATIENT DEATHS COULD BE DIRECTLY ATTRIBUTED
TO THE PROBLEMS HE STRESSED THAT DIALYSIS PATIENTS ARE VERY ILL AND THAT
MANY OF THEM DIE OR SUFFER ILLNESS IN THE NORMAL COURSE OF EVENTS BUT HE
ADDED THAT WE BELIEVE THAT PROBLEMS OF THIS TYPE HAVE CONTRIBUTED TO THE
MORTALITY LEVEL AMONG DIALYSIS PATIENTS IN GENERAL THESE ARE THE KINDS OF
THING THAT WE NEED TO CORRECT IF WE'RE GOING TO REDUCE THE MORBIDITY RATE
AMONG SUCH KIDNEY PATIENTS

THE PROBLEMS THAT CONCERNED THE FDA INCLUDED PLASTICBLOOD TUBES
CONTAMINATED WITH A CHEMICAL AGENT USED TO STERILIZE THEM DURING PRODUCTION
THE FDA OFFICIAL SAID THE AGENCY ALSO FOUND EXCESSIVE ENDOTOXINS 
POTENTIAL FEVER AGENTS IN SOME OF THE TUBES WHICH ARE KNOWN AS
BLOODLINES ONE RECALL INVOLVED BLOODLINES CONTAMINATED WITH PESTICIDE IN
SOME CASES MR JOHNSON SAID BLOODLINES WERE FOUND TO BE PRONE TO LEAKING
AT CONNECTIONS A SITUATION THAT HE SAYS PRESENTED A POTENTIAL HEALTH RISK
NOT ONLY TO THE PATIENTS BUT ALSO TO HEALTHCARE WORKERS

CONTAINERS FOR SOME PRODUCTS USED IN A CERTAIN KIND OF INTERNAL DIALYSIS HAD
MINUTE HOLES PRESENTING AN OPPORTUNITY FOR MICROBIAL CONTAMINATION HE
SAID AND IN 1992 HE RECALLED A DIALYZER CARTRIDGE MADE AT THE UNIT'S
DUBLIN IRELAND FACILITY WAS DISCOVERED TO BE CONTAMINATED WITH ETHER A
RESIDUE OF THE CLEANING PROCESS AND WE HAD SOME REACTIONS AND INJURIES AS
A RESULT OF THAT

LAST SPRING THE FDA BANNED IMPORTATION OF DIALYSIS PRODUCTS MADE AT
NATIONAL MEDICAL SITES IN DUBLIN AND REYNOSO MEXICO THAT BAN IS STILL
LARGELY IN PLACE ALTHOUGH THE MEXICO PLANT IS BEING ALLOWED TO SHIP SOME OF
THE BLOODLINES BECAUSE NATIONAL MEDICAL'S RIVALS HAVEN'T BEEN ABLE TO TURN
OUT AN ADEQUATE SUPPLY THE CONSENT DECREE INCLUDES THOSE PLANTS IN THE
INSPECTION SCHEDULE AND IMPORTS WILL BE ALLOWED TO RESUME AFTER FDA
CERTIFICATION

IN A STATEMENT ISSUED BY ITS BOCA RATON FLABASED PARENT NATIONAL MEDICAL
SAID IT REMAINS COMMITTED AS IT HAS THROUGH ITS 26YEAR LIFE TO THE
HIGHEST QUALITY OF PATIENT CARE NATIONAL MEDICAL ADDED THAT THE MORTALITY
RATE AT IT IS BETTER THAN ANY OTHER PROVIDER OF DIALYSIS SERVICES IN THE
US

NATIONAL MEDICAL OPERATES ABOUT 450 DIALYSIS SITES NATIONWIDE AND OVERALL
REVENUE FOR 1993 IS EXPECTED TO BE ABOUT 15 BILLION

IN AN INTERVIEW A NATIONAL MEDICAL OFFICIAL SAID THE COMPANY THINKS THAT
THE SERIOUSNESS OF OUR EFFORT AND THE SUCCESS OF OUR EFFORT TO DATE IN
RECTIFYING THE QUALITYCONTROL ISSUES OF CONCERN TO THE FDA ARE TESTIFIED
TO BY THE NATURE OF THE AGREEMENT WE SIGNED IN COMPARISON WITH TERMS OF
OTHER CONSENT DECREES IN THE MEDICALDEVICE FIELD IN RECENT YEARS HE SAID
THE AGREEMENT WITH THE GRACE UNIT WHICH INCLUDES NO FINES OR PENALTIES IS
EXTRAORDINARILY MILD HE ADDED AND WOULD APPEAR TO GIVE VERY CLEAR
EVIDENCE THAT THE FDA FEELS THE JOB OF BRINGING THINGS UP TO STANDARD IS
VERY NEARLY COMPLETE 9401240010 940124 AUTOS MADE IN WEEK FELL SHORT
OF ESTIMATES

DETROIT MOST OF THE 10 DOMESTIC AUTO MAKERS FELL SHORT OF THEIR
PRODUCTION ESTIMATES FOR LAST WEEK BECAUSE OF SEVERE WEATHER THROUGHOUT THE
MIDWEST AND SOME SOUTHERN STATES

THE AUTO MAKERS CITED PARTS SHORTAGES INSUFFICIENT ENERGY SUPPLIES AND LOW
WORKER TURNOUT FOR CANCELING WORK SHIFTS AT VARIOUS ASSEMBLY PLANTS

IN ADDITION MOST OF THE AUTO MAKERS WERE CLOSED MONDAY FOR THE MARTIN
LUTHER KING HOLIDAY

ALTOGETHER THE DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD 205582 CARS
AND TRUCKS IN THE WEEK ENDED FRIDAY A DECREASE OF 18 FROM THE 209346
VEHICLES BUILT A YEAR EARLIER COROLLA 9401240009 940110 LETTERS TO THE
EDITOR ORIGINATOR RECANTED ON NATURAL SELECTION'

THE PASSION AROUSED BY ANY QUESTIONING OF THE STANDARD VERSION OF EVOLUTION
NEVER CEASES TO AMAZE ME LETTERS TO THE EDITOR DEC 15 AND A SCOPES
TRIAL FOR THE '90S EDITORIAL PAGE DEC 6

EVOLUTION AS A SERIOUS SCIENTIFIC CONCEPT WAS INTRODUCED BY LAMARCK A
HALFCENTURY BEFORE DARWIN'S ORIGIN OF THE SPECIES IT IS ACCEPTED BY MANY
LEADING RELIGIOUS THINKERS WHO ALSO FIRMLY BELIEVE IN A CREATOR ALL THE
FUSS BEGAN WITH THE INTRODUCTION OF NATURAL SELECTION AS THE MECHANISM OF
EVOLUTION ALTHOUGH CREDIT FOR THIS CONCEPT USUALLY GOES TO DARWIN ALFRED
RUSSELL WALLACE IS ACKNOWLEDGED AS A CODISCOVERER RECENT RESEARCH
INDICATES THAT WALLACE WAS IN FACT THE FIRST ONE TO EXPRESS THIS VIEW FOR
PUBLICATION BUT THAT DARWIN CARRIED OUT SOME FANCY FOOTWORK TO GAIN
PRIORITY FOR THE DISCOVERY

EVERYONE AGREES THAT WIDE ACCEPTANCE OF NATURAL SELECTION CAME WITH DARWIN'S
FAMOUS BOOK OF 1859 BUT WALLACE CONTINUED TO BE THE MOST CONSISTENT
ADVOCATE OF NATURAL SELECTION THROUGH THE REST OF THE 19TH CENTURY WHILE
DARWIN WAS FLIRTING WITH LAMARCK'S INHERITANCE OF ACQUIRED CHARACTERISTICS
THE POINT OF ALL THIS IS THAT WALLACE AFTER MUCH DELIBERATION REJECTED
NATURAL SELECTION FOR THE ORIGIN OF MAN AND CONCLUDED THAT HUMANS COULD
HAVE ARISEN ONLY THROUGH THE INTERVENTION OF WHAT HE CALLED A HIGHER
INTELLIGENCE ON THIS SCORE I SUPPOSE WALLACE WOULD NOT HAVE BEEN ALLOWED TO
TEACH A BASIC COURSE ON EVOLUTION AT SAN FRANCISCO STATE SEE RELATED
LETTER LETTERS TO THE EDITOR MISPLACED ARTICLE WSJ JAN 24 1994
9401100076 YY94 MM01 9401240008 940124 MARKETING & MEDIA CAPITAL
CITIES/ABC TO ACQUIRE STAKE IN ALPHA SOFTWARE  BY JOHN R WILKE
 STAFF REPORTER OF THE WALL STREET JOURNAL

CAPITAL CITIES/ABC INC WILL ANNOUNCE TODAY THAT IT HAS ACQUIRED A MINORITY
STAKE IN ALPHA SOFTWARE CORP IN EXCHANGE FOR ADVERTISING ALPHA'S PRODUCTS
ON CAPITAL CITIES' NETWORK OF TELEVISION AND RADIO STATIONS NEWSPAPERS AND
TRADE PUBLICATIONS

THE AGREEMENT MARKS THE SECOND ADSFOREQUITY SWAP BY CAPITAL CITIES LAST
MARCH THE NEW YORK COMMUNICATIONS CONCERN TOOK AN EQUITY STAKE IN YES
ENTERTAINMENT A MAKER OF ELECTRONIC TOYS BASED IN PLEASANTON CALIF
CAPITAL CITIES SET UP A NEW UNIT CAPITAL CITIES CAPITAL TO INVEST IN
EMERGING COMPANIES OFFERING CONSUMER PRODUCTS THAT COULD GROW QUICKLY
THROUGH ADVERTISING ON THE ABC NETWORK

ALPHA SOFTWARE OF BURLINGTON MASS IS A CLOSELY HELD MAKER OF
DATABASEMANAGEMENT AND PRESENTATION GRAPHICS PROGRAMS FOR PERSONAL
COMPUTERS IT WAS THE THIRDRANKING MAKER OF DATABASE SOFTWARE LAST YEAR BY
UNITS SOLD AFTER BORLAND INTERNATIONAL INC AND MICROSOFT CORP ACCORDING
TO JEFFREY TARTER PUBLISHER OF THE INDUSTRY MONTHLY SOFTLETTER

ALPHA EXECUTIVES WOULDN'T DISCLOSE THE COMPANY'S LATEST SALES FIGURES BUT
OTHERS IN THE SOFTWARE INDUSTRY ESTIMATE THAT ALPHA HAD SALES OF AT LEAST
25 MILLION IN 1993 ALPHA'S GROWTH RATE SLOWED SOMEWHAT LAST YEAR ANALYSTS
SAID AS THE MARKET SHIFTED AWAY FROM OLDER PROGRAMS BASED ON THE DOS
OPERATING SYSTEM SUCH AS ALPHA FOUR THE COMPANY'S FLAGSHIP PRODUCT TOWARD
PROGRAMS THAT ARE DESIGNED TO WORK WITH MICROSOFT'S WINDOWS OPERATING
SOFTWARE

ALPHA IS WORKING ON A WINDOWS DATABASE WHICH IS EXPECTED TO BE SHIPPED TO
CUSTOMERS THIS SUMMER IT WAS THIS NEW PRODUCT THAT APPARENTLY ATTRACTED
CAPITAL CITIES' INTEREST

A CAPITAL CITIES SPOKESMAN WOULDN'T SAY HOW MUCH HAD BEEN INVESTED BUT
SAID WITH THE COST OF NETWORK ADVERTISING TODAY IT'S GOT TO BE A VALUABLE
DEAL

RICHARD RABINS COCHAIRMAN OF ALPHA SAYS HE'S BETTING THAT SOFTWARE
ADVERTISING IS READY FOR PRIME TIME THE AGE OF CONSUMER SOFTWARE MARKETING
IS HERE HE SAYS THE NUMBER OF PEOPLE BUYING COMPUTERS TODAY HAS GOTTEN
SO LARGE THAT YOU CAN'T REACH THEM SIMPLY BY BUYING ADVERTISING IN THE
COMPUTER TRADE MAGAZINES ANYMORE 9401240007 940124 BUSINESS BRIEF A&S
CHAIRMAN CHIEF QUITS AT FEDERATED DEPARTMENT STORES

NEW YORK FEDERATED DEPARTMENT STORES INC SAID CHAIM Y EDELSTEIN
CHAIRMAN AND CHIEF EXECUTIVE OF ITS ABRAHAM & STRAUS/JORDAN MARSH DIVISION
RESIGNED TO PURSUE OTHER INTERESTS

MR EDELSTEIN 51 YEARS OLD WOULDN'T COMMENT BEYOND THE COMPANY'S NEWS
RELEASE ABOUT HIS UNEXPECTED RESIGNATION HE HAD BEEN CHAIRMAN OF THE
BROOKLYN NYBASED ABRAHAM & STRAUS UNIT SINCE 1985 FEDERATED SAID IT
EXPECTS TO NAME A SUCCESSOR SHORTLY MR EDELSTEIN HAD BEEN WITH A&S SINCE
1978

IN 1992 CINCINNATIBASED FEDERATED MERGED THE HEADQUARTERS OPERATIONS OF
A&S AND THE BOSTONBASED JORDAN MARSH UNITS IN A SIGNIFICANT COSTCUTTING
EFFORT BOTH RETAILERS SERVE SIMILAR MIDDLECLASS CUSTOMER BASES AT THE
TIME MR EDELSTEIN THEN CHAIRMAN AND CHIEF EXECUTIVE OF A&S WAS NAMED AS
HEAD OF THE CONSOLIDATED CHAINS

THE MOST RECENT SALES FIGURES FOR THE UNIT'S 35 STORES SHOW THAT IN THE YEAR
ENDED JAN 30 1993 SALES TOTALED 142 BILLION THAT WAS A 3 GAIN FROM A
YEAR EARLIER WHEN SALES REACHED 138 BILLION 9401240006 940124 CLOSED
END FUNDS

CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN
SECURITIES UNLIKE OPENENDED FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR
SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND
SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER
ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN
C CHICAGO NNYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN
EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS
CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE
DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR
DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED
ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE
PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET
PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE
EX DIVIDEND B THE NAV IS FULLY DILUTEDC NAV MARKET PRICE AND PREMIUM OR
DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR
DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS
FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV
AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO
UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT
THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE
OR NOT APPLICABLE 9401240005 940124 FOREIGN EXCHANGE YEN REMAINS
CAUGHT IN TUG OF WAR BETWEEN POLITICAL AND ECONOMIC FORCES  BY
JOHN P HUGHES AND GENE COLTER SPECIAL TO THE WALL STREET JOURNAL

NEW YORK THE SURPRISE DEFEAT OF POLITICAL REFORM IN JAPAN LAST WEEK HAS
DEALT THE YEN ANOTHER SERIOUS BLOW STILL THE JAPANESE CURRENCY COULD GET
SOME SUPPORT FROM THE US GOVERNMENT'S CONTINUED EFFORTS TO USE IT AS A
LEVER AGAINST JAPANESE PROTECTIONISM

THE RESULT WILL BE THAT THE YEN FOR NOW REMAINS CAUGHT IN A TUG OF WAR
TRADERS AND ANALYSTS SAY

THE ECONOMICS OF THE SITUATION MAY DRIVE IT DOWN BUT THE POLITICAL VOICES
FROM WASHINGTON WILL TALK IT UP SAYS DAVE ROSSMAN VICE PRESIDENT AT
HARRIS TRUST & SAVINGS BANK CHICAGO

THE FAILED ATTEMPT BY PRIME MINISTER MORIHIRO HOSOKAWA TO PUSH POLITICAL
REFORM BILLS THROUGH THE UPPER HOUSE OF PARLIAMENT CAUGHT MANY IN THE MARKET
BY SURPRISE AND THE CROSSCURRENTS BEGAN TO SWIRL IN CURRENCY MARKETS

IN TRADING FRIDAY TRADERS INITIALLY TOOK THE JAPANESE CURRENCY HIGHER BUT
AS THE SESSION WORE ON THEY CHANGED THEIR MINDS AND THE DOLLAR REVERSED
ITS LOSSES AGAINST THE YEN

IN LATE NEW YORK TRADING THE DOLLAR WAS AT 11160 YEN UP FROM 11106 YEN A
WEEK EARLIER AND 11140 YEN THURSDAY THE DOLLAR WAS AT 17540 MARKS UP
FROM 17495 A WEEK AGO AND 17380 MARKS THURSDAY

ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11213 YEN AND AT
17526 MARKS

DEFEAT OF POLITICAL REFORM MAKES IT HIGHLY UNLIKELY THAT JAPAN'S COALITION
GOVERNMENT WILL BE ABLE TO IRON OUT ANY TIME SOON A COMPROMISE ON A STIMULUS
PACKAGE OR BUDGET FOR THE COMING FISCAL YEAR BEGINNING APRIL 1 ANALYSTS
BELIEVE THE DIET'S CURRENT SESSION ENDS JAN 29

THIS MAY NOT BE A PERMANENT DEFEAT BUT IT CERTAINLY DELAYS THE WHOLE
PROCESS OF MOVING TOWARD FISCAL STIMULUS AND THE GENERAL SENSE IS THAT THIS
IS THE WAY OUT OF RECESSION SAYS KEVIN LOGAN CHIEF ECONOMIST WITH SWISS
BANK CORP

MOREOVER THE DEFEAT OF THE REFORM PACKAGE WILL WEIGH HEAVILY UPON JAPAN'S
NIKKEI STOCK INDEX FURTHER SAPPING THE CURRENCY'S STRENGTH SAYS MR
ROSSMAN

MEANWHILE THE JAPANESE ECONOMY CONTINUES TO STRUGGLE

FOR EXAMPLE THE BANK OF JAPAN LAST WEEK SAID IT SAW NO REASON TO BELIEVE
WEAK LOAN DEMAND WOULD IMPROVE THAT IS THE KIND OF TALK THAT ONLY
EXACERBATES TENSION OVER THE GROWING TRADE DEFICIT BETWEEN THE US AND
JAPAN WHICH WIDENED MORE THAN 15 TO 536 BILLION IN DECEMBER

THE UNLIKELIHOOD OF A STIMULUS TO FIX THE TROUBLED ECONOMY MEANS THAT JAPAN
WILL CONTINUE TO BE PART OF TRADE SPEECHES BY CLINTON ADMINISTRATION
OFFICIALS CURRENCY AND POLITICAL ANALYSTS SAY

A STRONGER YEN WOULD DAMP THE FLOW OF JAPANESE EXPORTS TO THE US BY MAKING
THEM MORE EXPENSIVE HOWEVER THERE IS LESS DEMAND FOR US PRODUCTS AS
JAPAN'S ECONOMY CONTINUES TO LIMP ALONG

THUS IT IS EXPECTED THAT THE US WILL FURTHER PRESSURE JAPAN TO SOLVE ITS
TRADE PROBLEMS WITH THE US BY PUSHING UP THE YEN INDEED TREASURY
SECRETARY LLOYD BENTSEN MET WITH JAPANESE FINANCE MINISTER HIROHISA FUJII
AND MR HOSOKAWA SUNDAY

BENTSEN HAS BEEN PRETTY CRITICAL OF THE TRADE SITUATION SAYS RANDALL
POSEJPAL VICE PRESIDENT OF FOREIGN EXCHANGE AT SAUL STONE & CO IN CHICAGO
HE WAS REFERRING TO THE CONTINUING FRAMEWORK TALKS BETWEEN THE TWO
COUNTRIES THAT REACHED AN IMPASSE BECAUSE OF US DEMANDS THAT TRADE
RESTRICTIONS BE LOOSENED AND MORE IMPORTS ALLOWED INTO JAPAN USUALLY WITH
THESE MEETINGS EVERYONE EXPECTS MORE THAN WHAT COMES OUT OF THEM MR
POSEJPAL SAYS

STILL MORE TOUGH TALK FROM MR BENTSEN WAS EXPECTED TO PUT A BUFFER
UNDERNEATH THE YEN TRADERS AND ANALYSTS THINK KEEPING IT FROM FALLING TOO
FAR EVEN THOUGH THERE AREN'T ANY DOMESTIC SUPPORTS FOR THE YEN

MR BENTSEN RECEIVED NO SPECIFIC PROMISES SUNDAY BUT SAID MR HOSOKAWA TOLD
HIM THAT  WE WANT TO BRING THIS TO A SUCCESSFUL CONCLUSION
9401240004 940124 ENTERPRISE  BY TIMOTHY L O'BRIEN

INCREASED CONCERN ABOUT DRINKINGWATER QUALITY IS CREATING A FLOOD OF DEMAND
FOR CHEAP AND SIMPLE FILTRATION DEVICES

WHILE ONE OF THE MOST POPULAR IS MADE BY BRITA USA A UNIT OF BIG
CONSUMERPRODUCTS MAKER CLOROX SMALL MANUFACTURERS DOMINATE THE INDUSTRY
MANY EXPECT SALES TO SKYROCKET IN 1994 BUILDING ON LAST YEAR'S STRONG
GROWTH

ABOUT 15 OF US HOUSEHOLDS USE THE DEVICES UP FROM 4 IN 1992 ACCORDING
TO THE HOME WATER REPORT A NEWSLETTER IN CHINCOTEAGUE ISLAND VA

INNOVA PURE WATER IN CLEARWATER FLA ANTICIPATES SALES OF ABOUT 3 MILLION
FOR THE FISCAL YEAR ENDING JUNE 30 UP FROM 900000 LAST YEAR INNOVA MAKES
A SMALL CARAFE THAT FILTERS TAP WATER FOR A SUGGESTED RETAIL PRICE OF 6
CONSUMERS ARE REALIZING THERE ARE ALTERNATIVES TO BOTTLED WATER AND
FILTERED WATER SYSTEMS ARE BECOMING MUCH MORE POPULAR SAYS JOSEPH NOHREN
INNOVA'S EXECUTIVE VICE PRESIDENT

THE DEVICES ALSO ARE A GROWING PRODUCT CATEGORY FOR POLLENEX SAYS PHIL
GYORI A SPOKESMAN FOR THE KANSAS CITY MO MAKER OF FAUCET FILTERS
EVERYBODY'S BEEN SCRATCHING THEIR HEADS FOR A LONG TIME SAYING THIS SHOULD
BE BIG NOW IT'S FINALLY STARTING TO PICK UP SPEED

MR GYORI SAYS SALES OF POLLENEX'S 25 FILTERS ROSE 30 LAST YEAR THE
PRIVATELY HELD COMPANY WHICH DECLINES TO DISCLOSE FIGURES EXPECTS STRONGER
GROWTH THIS YEAR HE ADDS

CALDERA ENVIRONMENTAL A CHICAGO FILTER MAKER SAYS 1993 FILTER SALES AT ITS
STERLING AIR & WATER UNIT ROSE TO 45 MILLION FROM 1 MILLION IN 1992
CALDERA OFFICIALS THINK TASTES WILL BECOME MORE SOPHISTICATED OVER THE NEXT
FEW YEARS WE'RE HOPING THAT AS CONSUMERS BECOME MORE COMFORTABLE WITH
SIMPLER FILTRATION SYSTEMS THEY'LL THINK ABOUT USING MORE ELABORATE SYSTEMS
FOR THE ENTIRE HOME SAYS DAWN VAN ZANT A SPOKESWOMAN

ENTREPRENEURS COMPLAIN THAT INCREASED TELEMARKETING ABUSES MAKE IT HARDER
FOR LEGITIMATE CATALOG STARTUPS TO GET MERCHANT ACCOUNTS FROM COMPANIES
THAT ISSUE OR PROCESS CREDIT CARDS

THERE IS A LOT OF TRUTH TO THAT SAYS JOHN ELLIOT CHIEF EXECUTIVE OFFICER
OF CARD ESTABLISHMENT SERVICES A BIG CREDITCARD PROCESSOR IN MELVILLE
NY BUT THE PROBLEM WITH MAIL ORDER IS THAT WE'RE EFFECTIVELY ASKED TO
GIVE THE MERCHANT THE MONEY WITHOUT SEEING WHETHER THE CUSTOMERS GET THE
GOODS

OWNERS OF SMALL CATALOG COMPANIES SAY CREDITCARD COMPANIES HAVE BECOME TOO
DEFENSIVE YOU WOULD THINK WE WERE IN THE BUSINESS OF TRUCKING
NITROGLYCERINE ACROSS THE TRANSALASKA HIGHWAY GIVEN HOW AFRAID OF US THEY
WERE SAYS DANIEL ROTHMEL FOUNDER OF GOLDEN CALIFORNIA CATALOG IN LOS
ANGELES

THOUGH THE STATE IS A PARTNER AND INVESTOR IN THE COMPANY MR ROTHMEL SAYS
HE TRIED FOR SEVERAL MONTHS TO GET A CREDITCARD ACCOUNT BEFORE LAUNCHING
HIS CATALOG BUSINESS THREE MONTHS AGO IT SELLS GIFTS AND SOUVENIR ITEMS
WITH A CALIFORNIA THEME MR ROTHMEL FINALLY LANDED AN ACCOUNT WITH LITLE &
CO A SALEM NH PROCESSOR SPECIALIZING IN CATALOG FIRMS AND DIRECTMAIL
STARTUPS

OTHER ENTREPRENEURS SAY ESTABLISHING AN ACCOUNT CAN BE UNNECESSARILY
DIFFICULT CREDITCARD COMPANIES ALL TOLD ME THAT IF YOU'RE A NEW
MAILORDER BUSINESS WE DON'T WANT TO TALK TO YOU SAYS JEAN HILL OWNER OF
AMARA KOSHER MEATS IN NEW YORK MS HILL WHO STARTED HER MAILORDER FOOD
COMPANY A YEAR AGO SAYS SHE SPENT THREE YEARS LOOKING FOR A COMPANY BEFORE
A CONSULTANT STEERED HER TOWARD LITLE THESE CREDITCARD COMPANIES JUST
WANT TO REAP THE BENEFITS OF FEES BUT DON'T TAKE THE RISK OF HELPING A SMALL
BUSINESS GET STARTED SHE ADDS

LITLE AND DMGT IN NASHUA NH WHICH ALSO HANDLES SMALL CATALOG ACCOUNTS
SAY A STARTUP GETS THE ACCOUNTS FASTER WHEN IT CAN PROVIDE A WELLDEVELOPED
BUSINESS PLAN AND HAS STRONG FINANCIAL BACKING AND MANAGEMENT EXPERIENCE

SMALL BUSINESSES ARE GETTING MORE ADVICE ON NEGOTIATING THE CONFUSING WORLD
OF OUTSOURCING WITH BIG CORPORATIONS INCREASINGLY CONTRACTING OUT
EVERYTHING FROM DATA PROCESSING TO JANITORIAL WORK OUTSOURCING ARRANGEMENTS
CAN BECOME THORNY FOR SMALL VENDORS

OUTSOURCING PROGRAMS ARE THROWN TOGETHER HAPHAZARDLY AND MANY OF THE SMALL
BUSINESSES THAT BECOME INVOLVED WITH THEM GET BURNED SAYS JOSEPH BISSETT
PRESIDENT OF CONSERVE A WAYNE PA COMPANY THAT BROKERS ARRANGEMENTS
BETWEEN SMALL AND LARGE COMPANIES SMALL CONCERNS OFTEN DON'T GET ADEQUATE
SUPPORT FROM THE LARGER COMPANIES AND TERMS OF DEALS OFTEN ARE CLOUDY HE
ADDS

MR BISSETT SAYS CONSERV'S BUSINESS HAS GROWN DRAMATICALLY OVER THE LAST SIX
MONTHS BECAUSE MORE SMALL BUSINESSES HAVE HAD PROBLEMS FINDING SATISFACTORY
OUTSOURCING CONTRACTS HE SAYS SMALL COMPANIES SHOULD MAKE SURE CONTRACTS
ARE EXCLUSIVE ARE LONGER THAN A YEAR AND HAVE WELLDEFINED COMMISSION OR
PAYMENT TERMS

OTHERS ALSO ARE MAKING A BIGGER PUSH TO ASSIST SMALL FIRMS COOPERS &
LYBRAND THE LARGE NEW YORK CONSULTING GROUP HAS BROKERED OUTSOURCING
ARRANGEMENTS BETWEEN BIG AND SMALL CONCERNS FOR THE PAST 18 MONTHS AND IN
APRIL THE NONPROFIT OUTSOURCING INSTITUTE OPENED IN NEW YORK IN RESPONSE TO
WHAT IT SAYS WAS FRUSTRATION AMONG CORPORATE MANAGERS SEEKING MORE
OUTSOURCING VENDORS OF ALL SIZES

THE INSTITUTE CHARGES VENDORS 2200 A YEAR FOR A LISTING IN AN OUTSOURCING
GUIDE A NEWSLETTER AND SEMINAR DISCOUNTS

COMPANIES WITH REVENUE OF 100 MILLION OR LESS PAID THEIR CEOS AN AVERAGE
SALARY OF 143900 LAST YEAR ONLY 33 MORE THAN 1992 ACCORDING TO A RECENT
SURVEY OF 735 SUCH FIRMS BY CONSULTANTS ERNST & YOUNG IN NEW YORK  ALL
IN THE FAMILY ABOUT 24 OF THE OWNERS OF FAMILYOWNED ENTERPRISES DO NOT
WANT TO TRANSFER THE BUSINESS TO A RELATIVE ACCORDING TO A RECENT SURVEY BY
THE GALLUP ORGANIZATION 9401240003 940124 RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

BORROR CORP AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA MCDONALD
& CO SECURITIES INC AND OHIO CO

DIGITAL EQUIPMENT CORP A SHELF REGISTRATION OF 1 BILLION IN SECURITIES
INCLUDING SENIOR AND SUBORDINATED DEBT PREFERRED STOCK DEPOSITARY SHARES
AND WARRANTS TO PURCHASE EQUITY OR DEBT SECURITIES

FIRST USA INC AN OFFERING OF FIVE MILLION MANDATORY CONVERTIBLE PREFERRED
SHARES VIA MERRILL LYNCH AND GOLDMAN SACHS & CO AND A SEPARATE OFFERING
OF FIVE MILLION COMMON SHARES VIA MERRILL LYNCH ALEX BROWN & SONS INC
GOLDMAN SACHS AND KIDDER PEABODY & CO

GBC TECHNOLOGIES INC AN OFFERING OF 29 MILLION COMMON SHARES VIA RAYMOND
JAMES & ASSOCIATES INC AND FOLEY MUFSON HOWE & CO

ICELAND AN OFFERING OF UP TO 200 MILLION OF NOTES VIA JP MORGAN
SECURITIES INC CITICORP SECURITIES INC GOLDMAN SACHS & CO AND MERRILL
LYNCH & CO

MIDWESCO FILTER RESOURCES INC AN OFFERING OF 12 MILLION COMMON SHARES
VIA CHICAGO CORP

PROPHET 21 INC AN OFFERING OF 15 MILLION COMMON SHARES VIA WILLIAM BLAIR
& CO

SPARTA PHARMACEUTICALS INC AN INITIAL OFFERING OF UP TO 1840000 COMMON
SHARES AT 7 TO 8 A SHARE VIA RAS SECURITIES CORP

THERATECH INC AN OFFERING OF 207500 COMMON SHARES VIA WILLIAM BLAIR &
CO KIDDER PEABODY & CO AND VECTOR SECURITIES INTERNATIONAL INC

THREEFIVE SYSTEMS INC AN OFFERING OF ABOUT 11 MILLION COMMON SHARES

TRANS OCEAN CONTAINER CORP SAN BRUNO CALIF AN OFFERING OF UP TO 75
MILLION OF SENIOR SUBORDINATED NOTES DUE 2004 VIA MERRILL LYNCH & CO AND
BEAR STEARNS & CO 9401240001 940124 LETTERS TO THE EDITOR DO
NONLAWYERS BELONG IN INVESTOR DISPUTES

IN HIS DEC 29 LETTER RESPONDING TO YOUR DEC 3 ARTICLE PLAN TO BAR
NONLAWYER ADVISERS IN INVESTOR DISPUTES DEBATED PAUL N YOUNG IGNORES
LEGITIMATE CONCERNS RAISED BY THOSE WHO OPPOSE NONLAWYER ADVISERS IN
SECURITIES ARBITRATION AND INSTEAD FRAMES THE DEBATE AS A RECENT
PHENOMENON PITTING GREEDY AND SELFINTERESTED ATTORNEYS AND STOCKBROKERS
AGAINST THE PUBLIC THIS IS UNFAIR AND A DISSERVICE TO THE INDIVIDUAL
INVESTOR THE MATTER IS SERIOUS AND WAS EXPLORED YEARS AGO WHEN I WAS A
MEMBER OF THE NASD'S BROADBASED NATIONAL ARBITRATION COMMITTEE

THE REAL ISSUES HERE ARE DISCLOSURE ACCOUNTABILITY AND EXPERTISE ATTORNEYS
AND STOCKBROKERS ARE LICENSED AND SUBJECT TO EXTENSIVE REGULATION AND HIGH
ETHICAL AND OTHER STANDARDS THOSE WHO STRAY FROM THESE STANDARDS ARE
ACCOUNTABLE IN MANY WAYS INCLUDING DISCIPLINARY PROCEEDINGS LITIGATION AND
ARBITRATION

NONE OF THESE SAFEGUARDS ARE AVAILABLE TO INVESTORS DEALING WITH UNREGULATED
ARBITRATION ADVISERS EVEN THOSE ADVISERS WITH LIMITED INVESTMENT PRODUCT OR
OTHER EXPERTISE ARE NOT LICENSED OR QUALIFIED TO PRACTICE LAW AND THEIR
PROPER ROLE IS AS AN EXPERT WITNESS UNDER THE GUIDANCE OF AN EXPERIENCED
TRIAL ATTORNEY I QUESTION THE DISCLOSURES INVESTORS RECEIVE IN LIGHT OF
OCCASIONS WHERE SOME ADVISERS WERE FOUND TO BE DISBARRED ATTORNEYS OR
STOCKBROKERS FORCED OUT OF THE BUSINESS DUE TO REGULATORY PROBLEMS

AS THE ATTORNEY WHO SUCCESSFULLY ARGUED TWO OF THE LEADING SUPREME COURT
CASES IN THE AREA OF SECURITIES ARBITRATION SHEARSON V MCMAHON AND
RODRIGUEZ V SHEARSON AND AS ONE WHOSE PRACTICE SPECIALIZES IN THIS AREA
I SHARE THE CONCERNS OF PUBLIC REGULATORY AND INDUSTRY PROFESSIONALS ABOUT
THE USE OF THESE ADVISERS IN ARBITRATION FORUMS STRIVING TO MAINTAIN THE
HIGHEST PROFESSIONAL STANDARDS AND PRESERVE PUBLIC CONFIDENCE 9401210186
940121 BUSINESS BRIEF LEE ENTERPRISES INC PROFIT ROSE 16 IN QUARTER
 WHILE REVENUE INCREASED 6

LEE ENTERPRISES INC CITING STRENGTHENED ADVERTISING AT ITS NEWSPAPER AND
BROADCAST HOLDINGS SAID EARNINGS IN ITS FISCAL FIRST QUARTER ROSE 16 ON A
6 RISE IN REVENUE

FOR THE QUARTER ENDED DEC 31 THE DAVENPORT IOWA MEDIA CONCERN REPORTED
NET INCOME OF 133 MILLION OR 57 CENTS A SHARE UP FROM THE YEARBEFORE
115 MILLION OR 49 CENTS A SHARE REVENUE ROSE TO 1021 MILLION FROM
963 MILLION

THE COMPANY OWNS EIGHT TELEVISION STATIONS 19 DAILY NEWSPAPERS AND A STABLE
OF WEEKLY OR SPECIALTY PAPERS PRIMARILY IN SMALLER CITIES AND TOWNS

LEE SAID CLASSIFIED ADVERTISING INCREASED 11 FROM THE YEAREARLIER PERIOD
REFLECTING STRENGTH IN THE AUTOMOTIVE AND REAL ESTATE SEGMENTS AND MORE
ADVERTISING BY INDIVIDUAL CUSTOMERS OVERALL NEWSPAPER ADVERTISING REVENUE
GREW 37 BROADCASTING REVENUE ROSE 2 9401210185 940121 SANDOZ SAYS NET
 LAST YEAR ROSE MORE THAN 10  SPECIAL TO THE WALL STREET JOURNAL

ZURICH SANDOZ AG SAID IT EXPECTS TO REPORT 1993 GROUP NET INCOME
INCREASED MORE THAN 10 FROM 1992 BECAUSE OF HIGHER OPERATING PROFIT AND
TIGHT COST CONTROLS

THE SWISS CHEMICAL AND PHARMACEUTICALS COMPANY WITH LARGE US OPERATIONS
ALSO SAID GROUP SALES CLIMBED 5 TO 151 BILLION SWISS FRANCS 1034
BILLION FROM 1442 BILLION FRANCS IT ATTRIBUTED THE SALES GROWTH TO THE
INCREASING DYNAMISM OF PHARMA SALES AND THE ABOVEAVERAGE PERFORMANCE OF
THE CORE SECTOR CHEMICALS AND ENVIRONMENT

SANDOZ SAID ITS LIFE SCIENCES DIVISIONWHICH INCLUDES PHARMACEUTICALS
NUTRITION PRODUCTS AND SEEDSPOSTED SALES GROWTH OF 4 TO 10051 BILLION
FRANCS FROM 9637 BILLION FRANCS

THE CHEMICALS AND ENVIRONMENT DIVISION MEANWHILE WHICH INCLUDES INDUSTRIAL
CHEMICALS AGROCHEMICALS AND CONSTRUCTION AND ENVIRONMENTAL CHEMICALS HAD
SALES GROWTH OF 6 TO 5049 BILLION FRANCS FROM 4779 BILLION FRANCS

PHARMACEUTICALS SALES CLIMBED 7 TO 7348 BILLION FRANCS FROM 687 BILLION
FRANCS WITH THE PACE OF SALES GROWTH RISING TO 10 IN THE FOURTH QUARTER

AMONG 1993'S BESTSELLING PHARMACEUTICALS PRODUCTS SANDIMMUN SALES WERE UP
15 CLOZARIL/LEPONEX UP 60 SANDOSTATIN UP 15 AND DYNACIRC/LOMIR UP 43
SANDOZ SAID

SALES GROWTH IN THESE PRODUCTS ARE A CLEAR DEMONSTRATION THAT THE RESEARCH
EFFORTS OF YESTERDAY ARE THE BASIS FOR TODAY'S SUCCESS THE COMPANY SAID

ELSEWHERE IN THE LIFE SCIENCES DIVISION SALES IN THE NUTRITION SECTOR WERE
DOWN 1 TO 1722 BILLION FRANCS FROM 1746 BILLION FRANCS THE COMPANY
ATTRIBUTED MUCH OF THE DECLINE TO THE WEAKNESS OF THE SWEDISH KRONA AGAINST
THE SWISS FRANC EXCLUDING CURRENCY FACTORS NUTRITION SALES WERE UP 4
SALES IN THE SEEDS SECTOR MEANWHILE FELL 4 TO 981 MILLION FRANCS FROM
1021 BILLION FRANCS LARGELY REFLECTING THE DIVESTITURE OF ACTIVITIES WITH
LITTLE ADDED VALUE SANDOZ SAID 9401210184 940121 ROCKANDROLL SEEMS
HERE TO STAY IN ASSAD'S SYRIA  SMALL POTATOES AND DERIVATIVE IT
HAS THE STATE'S SANCTION IF IT STEERS CLEAR OF POLITICS  BY ROBERT
S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL

DAMASCUS SYRIA WITH RED AND GREEN SPOTLIGHTS TWIRLING AND A STROBE LIGHT
PULSATING JOURNEY A LOCAL ROCK BAND LAUNCHES INTO AN OLD CHUCK BERRY
FAVORITE THE CROWD A BLUR OF BLUEJEANS MINISKIRTS AND SWEAT SHIRTS
DANCES IN THE AISLES AND SINGS ALONG WITH VOCALIST BASEL HAG YOUSEFF JUST
LET ME HEAR SOME OF THAT ROCKANDROLL MUSIC IF YOU WANT TO DANCE WITH ME

ROCK A DESPISED SYMBOL OF WESTERN DECADENCE IN NEIGHBORING CAPITALS OF
TEHRAN AND BAGHDAD THROBS HAPPILY UNDER THE AUTHORITARIAN RULE OF SYRIA'S
HAFEZ AL ASSAD OF COURSE ROCKING AND ROLLING HERE ISN'T EASY THE MUSIC IS
STRICTLY APOLITICAL CRITICIZING THE GOVERNMENT CAN LAND YOU IN PRISON NOR
IS DISCODAMASCUS HEAVY ON GLAMOUR AND GLITZ ROCK STARS OFTEN PUT UP THEIR
OWN POSTERS AND SUPPLEMENT THEIR MUSICAL CAREERS WITH OTHER PURSUITS LIKE
PRACTICING DENTISTRY

STILL THE MUSIC BLARES OVER STATEOWNED AIRWAVES IN THIS CRADLE OF ARAB
NATIONALISM AND ELVIS IS THE KING

AND THEN THERE IS SALLY AL SHREIKH THE 21YEAROLD BASSGUITAR PLAYER
WHOSE BLACK NAIL POLISH MATCHES HER LONG HAIR HAD MEMBERS OF THE AUDIENCE
DIVING ONTO THE STAGE LAST OCTOBER IN HER DEBUT AT THE RUSSIAN CULTURE
CENTER HERE HER HEAVYMETAL GROUP MORE GUTS PLAYS HITS BY SUCH WESTERN
MUSICIANS AS NIRVANA OZZY OSBORNE AND METALICA

MS AL SHREIKH SAYS THE OLDER GENERATION LOATHES THE HARSH SOUNDS OF HEAVY
METAL BUT HER PARENTS HAVE BEEN SUPPORTIVE OF HER BUDDING CAREER HER
MOTHER A PIANIST ONCE TOLD HER THIS IS YOUR LIFE DO WHATEVER YOU WANT
MS AL SHREIKH ENJOYS A MEASURE OF CELEBRITY DRAWING STARES AT DAMASCUS
UNIVERSITY WHERE SHE IS AN ENGLISHLITERATURE MAJOR BUT FAME HAS ITS
PRICE SOME OF MY FRIENDS AND ALL MY TEACHERS DIDN'T AGREE WITH MY BEING IN
A HEAVYMETAL BAND SHE SAYS THEY SAID PEOPLE WOULD SAY I'M NOT A GOOD
GIRL

EVEN WITH GOVERNMENT APPROVAL ROCKERS DON'T SHARE IN THE ADULATION AND
WEALTH ENJOYED BY WESTERN STARS JOURNEY NOT TO BE CONFUSED WITH A GROUP
ONCE POPULAR IN THE US EARNS ONLY ABOUT 200 A CONCERT WHILE A GOOD SET
OF DRUMS CAN COST 3000 HERE SO MUSICIANS REGULARLY BORROW INSTRUMENTS
FROM ONE ANOTHER FOR CONCERTS AND SOME BAND MEMBERS WORK OTHER JOBS OR MAKE
ENDS MEET BY GIVING PRIVATE MUSIC LESSONS AND WITHOUT ROADIES AN AGENT OR
AN ADVANCE TEAM BAND MEMBERS HAVE TO ARRANGE THEIR OWN BOOKINGS FIND
REHEARSAL HALLS AND SET UP THEIR OWN EQUIPMENT

BY NOW MUSICIANS ARE RESIGNED TO SELFCENSORSHIP WE CANNOT SAY ANYTHING
POLITICAL IN OUR MUSIC SAYS SAMER AKBIK A THIN GUITARIST WITH A WISPY
BEARD WHO PLAYS IN MS AL SHREIKH'S GROUP WE'RE RAISED ON NOT TALKING
POLITICS

STILL MS AL SHREIKH WHO LEARNED TO PLAY GUITAR FROM AN EXBOYFRIEND
GLORIES IN HER SELFPROCLAIMED ROLE AS THE ONLY FEMALE HEAVYMETAL ROCKER IN
THE ARAB WORLD AS SHE SPEAKS SITTING AT A SIDEWALK CAFE TWO WOMEN WALK BY
WEARING TRADITIONAL MUSLIM VEILS SHE GLANCES AT THEM BLOWS CIGARETTE SMOKE
IN THEIR DIRECTION AND LAUGHS I WANT TO MAKE A BAND FULL OF GIRLS SHE
SAYS

THE FATHERS OF MODERN SYRIAN ROCK ARE A GROUP CALLED ROCKESTRA WHICH
PIONEERED THE USE OF LIGHTS SMOKE MACHINES AND THOUSANDWATT SPEAKERS TO
STAGE THE FIRST MASS CONCERT HERE IN 1984 AT THE MERIDIEN HOTEL ONE FAN IN
THE AUDIENCE THAT NIGHT WAS AMMAR ALANI NOW A DENTIST WHO PLAYS THE
ELECTRIC KEYBOARD FOR JOURNEY FOR A 14YEAROLD STUDYING CLASSICAL PIANO
THE EVENT WAS AN EPIPHANY I WAS EXPECTING MUSIC BUT WHAT I FOUND WAS
PEOPLE HAVING FUN HE RECALLS AFTER THAT DAY PEOPLE KNEW THERE WAS
SOMETHING CALLED ROCK CONCERTS WHERE YOU GET CRAZY AND DANCE

THE GETCRAZY CONCERTS GO ALONG WITH A SOMEWHAT LOOSER CULTURAL CLIMATE IN
SYRIA PARTICULARLY FOR THE CHILDREN OF THE ELITE AND MIDDLE CLASS FROM
WHOSE RANKS MOST ROCKERS SEEM TO COME HALLAH AL FAYSAL AN ARTIST SHOCKED
SOME WITH AN EXHIBITION THAT INCLUDED SEVERAL NUDE SELFPORTRAITS FREE
EXPRESSION ALSO BURSTS FORTH ON A DAMASCUS RADIO SHOW ON WHICH CALLERS VENT
THEIR ANGER ABOUT STEEPLY RISING PRICES

THOUGH NUDES AND CALLIN COMPLAINING ARE RECENT PHENOMENA ROCK'S ROOTS GO
DEEPER IN THE EARLY 1960S A FEW BANDS WITH NAMES LIKE DYNAMITE AND THE
BLUEBATS BRIEFLY HAD SMALL LOCAL FOLLOWINGS THEN THE BLUEBATS FLEW TO
NORWAY ON TOUR AND NEVER CAME BACK

IN 1968 JOHNNY KOMIVES A HUNGARIANSYRIAN DRUMMER STARTED A ROCK BAND
CALLED THE TIGERS HE SAYS HE LEARNED HIS ROCK MUSIC BY DRIVING TWO HOURS
ACROSS THE MOUNTAINS TO BEIRUT WHERE THE CLUBS WERE PLAYING SONGS BY BILL
HALEY AND THE COMETS THE BEATLES AND ELVIS PRESLEY AT FIRST THE TIGERS
ROARED AT LOCAL HIGH SCHOOLS WE ALL TRIED TO IMITATE PRESLEY HE SAYS

THESE DAYS THE 44YEAROLD MR KOMIVES'S ONCESHOULDERLENGTH HAIR IS
CLOSECROPPED AND THINNING AND THE BAND EARNS UP TO 2000 A GIG PLAYING
WHAT HE CALLS MODERNIZED ARAB MUSIC AT WEDDINGS ANNIVERSARIES AND OTHER
SOCIAL OCCASIONS

AND THE BEAT GOES ON

A HUGE SUPPLY OF AUDIOTAPE CASSETTES AVAILABLE IN DAMASCUS GIVES SYRIA'S
BUDDING ROCK MUSICIANS AMPLE OPPORTUNITY TO LEARN IMPORTED ROCK NEARLY ALL
THE TAPES ARE MASSPRODUCED HERE WITH LITTLE CONCERN FOR COPYRIGHT LAWS A
DOWNTOWN MUSIC STORE NAI IS BRIMMING WITH 5000 DIFFERENT TITLES FROM BOB
DYLAN TO MEATLOAF ALL THE TAPES ON THE SHELVES LOOK THE SAME BLUE AND
WHITE PACKAGES WITH A PICTURE OF A GOLD COMPACT DISK THEY ALL ARE
REPRODUCED FROM CDS BOUGHT IN THE WEST

SATURDAY NIGHTS AT 815 TV VIEWERS CAN WATCH LETTERS AND SONGS WHICH
PLAYS REQUESTED HITS KHALAD SARAN WHO RUNS THE PROGRAM GETS 200 TO 500
LETTERS EACH WEEK ABOUT A FOURTH OF THE REQUESTS ARE FOR ROCK HE SAYS
INCLUDING SUCH FAVORITE ARTISTS AS GUNS 'N ROSES IRON MAIDEN AND ELTON
JOHN

BY AMERICAN STANDARDS THE SYRIAN ROCK SCENE IS TAME THE CROWDS ARE MUCH
SMALLER AND THERE ARE VIRTUALLY NO DRUGS BEER FLOWS FREELY MOST OF THE
MUSICIANS ARE AMATEURS MOSTLY THEY PLAY BECAUSE THEY LOVE THE MUSIC

FOR AKRAM A COLLEGE DROPOUT AND GUITAR PLAYER THE MUSIC IS EVERYTHING HE
DOESN'T WANT ANY OTHER KIND OF JOB AND DOESN'T CARE THAT WHEN HE WALKS DOWN
THE STREET HE IS TAUNTED ABOUT HIS PONYTAIL HE DREAMS OF EMIGRATING TO THE
WEST THE SOURCE OF THE SOUNDS HE LOVES

INDEED AKRAM WITH HIS BIG BROWN MOURNFUL EYES IS A '60S FLOWER CHILD
STUCK IN DAMASCUS HARBORING UNCONVENTIONAL THOUGHTS IF YOU SHARE MUSICAL
THOUGHTS WITH ME I DON'T CARE IF YOU'RE FROM MARS HE SAYS WHO CARES IF
YOU'RE ISRAELI YOU'RE A HUMAN BEING YOU CAN FEEL YOU CAN GET HURT I CAN
PUT THAT TOGETHER MAYBE IF YOU CAN TOO SOME KIND OF PEACE WILL HAPPEN
9401210183 940121 LEISURE & ARTS ON SPORTS STRIKE TALK MIKE IN
CLEATS SKATEGATE'  BY FREDERICK C KLEIN

IT'S BEEN SOME COUPLE OF WEEKS IN SPORTS THE BIGTIME COLLEGE MEN'S
BASKETBALL COACHES TALKED STRIKE OVER THE NATIONAL COLLEGIATE ATHLETIC
ASSOCIATION'S REFUSAL TO RESTORE A 14TH SCHOLARSHIP PROBABLY MARKING THE
FIRST TIME TEACHERS EVER AIMED SUCH AN ACTION AT GETTING LARGER CLASS SIZES
MICHAEL JORDAN SAID HE WANTS TO MAKE A SPORTS COMEBACK IN MAJOR LEAGUE
BASEBALL AND IT TOOK AN EARTHQUAKE TO KNOCK THE TONYA HARDING SKATEGATE
SCANDAL OFF PAGE ONE

WHAT'S GOING ON HERE I'M NOT SURE I KNOW IN FACT I'M SURE THERE ARE A LOT
OF THINGS I DON'T KNOW ABOUT THESE CASES BUT THERE ARE A FEW THINGS I DO
KNOW AND I'M HAPPY TO SHARE THEM WITH YOU

WHEN EVALUATING L'AFFAIRE JORDAN ONE SHOULD KEEP IN MIND THE NUMBERS 85 AND
81 THOSE WERE THE 18HOLE SCORES HE POSTED IN THE 1991 WESTERN AMATEUR HIS
FIRST AND SO FAR AS I KNOW LAST VENTURE INTO HONESTTOGOSH
TOURNAMENT GOLF

YOU MAY RECALL THAT THROUGHOUT HIS PROFESSIONAL BASKETBALL CAREER JORDAN'S
SECOND SPORTING LOVE WAS GOLF NOT BASEBALL DURING THE SEASON HE'D TRAVEL
WITH HIS GOLF CLUBS ON THE CHANCE THAT AN OCCASION TO PLAY THE GAME MIGHT
ARISE AND IT WAS TO THE LINKS NOT THE DIAMOND THAT HE'D INSTANTLY REPAIR
ONCE HIS COURTLY LABORS ENDED EACH JUNE UNDER THE PERSONAL SECTION OF HIS
PAGE IN LAST SEASON'S CHICAGO BULLS MEDIA GUIDE HE SAID THAT ONCE HIS HOOPS
DAYS WERE DONE HE'D LIKE TO TRY HIS HAND ON THE PGA TOUR

THIS SPLENDID ATHLETE LOVED THE GAME AND PRACTICED DILIGENTLY BY MOST
ACCOUNTS HE BECAME QUITE GOOD AT IT SOMETIMES SCORING IN THE MID70S DURING
ROUNDS WITH HIS PALS MANY TOOK HIS GOLFPRO TALK SERIOUSLY WHICH WAS WHY
HIS ENTRY INTO THE MEDALPLAY '91 WESTERN AMATEUR ON THE FORMIDABLE POINT
O'WOODS COURSE IN BENTON HARBOR MICH WAS WIDELY NOTED ALAS HIS SCORES
THERE PLACED HIM 163RD IN THE FIELD OF 165 AND HE MISSED THE 36HOLE CUT BY
16 STROKES

THE EPISODE CAME TO MIND WHEN IN THEIR ENDLESS DISCUSSIONS OF JORDAN'S
BASEBALL PLANS CHICAGO TV STATIONS RAN VIDEOTAPES OF HIM HITTING BALLS THAT
BARELY CLEARED THE LEFTFIELD FENCE IN COMISKEY PARK DURING A SUMMER
BATTINGPRACTICE SESSION WITH THE CHICAGO WHITE SOX THE TEAM HE'D LIKE TO
ACCOMPANY TO SPRING TRAINING HITTING A HOMER IN BATTING PRACTICE IS LIKE
SHOOTING A 75 IN A FRIENDLY GOLF GAME I DARE SAY IT'S HARDER TO DO FOR
REAL

MEANTIME THOSE WHO FEEL THAT THE WORLD IS A BETTER PLACE WHEN MICHAEL IS
PERFORMING FOR THE BULLS CAN TAKE HEART IN THE THOUGHT THAT HIS HIGHNESS IS
BORED ENOUGH AFTER THREE MONTHS OF RETIREMENT TO PURSUE A BASEBALL FANTASY

THE MOST REVEALING THING I'VE READ ABOUT THE COLLEGE BASKETBALL BOYCOTT
THREAT WAS A PIECE IN THIS WEEK'S CHICAGO TRIBUNE IT REPORTED THAT LAST
YEAR WHEN THE SCHOLARSHIP LIMIT WAS 14 166 OF THE 288 DIVISION I SCHOOLS
HAD AWARDED FEWER IT WENT ON TO SAY THAT WHILE FULL CURRENTSEASON NUMBERS
WEREN'T IN YET THE TREND HAD CONTINUED AMONG THE TEAMS MAKING DO WITH
FEWER THAN THE CURRENTLY PERMITTED 13 SCHOLARSHIP PLAYERS WERE THOSE COACHED
BY MEN WHO'D BEEN OUTSPOKEN IN FAVOR OF A STRIKE/BOYCOTT

BLACK COACHES HAVE BEEN IN THE VANGUARD OF THE MOVE TO RESTORE THE
SCHOLARSHIPS PHASED FROM THE SPORT IN THE NAME OF ECONOMY THEY AND OTHERS
NOTE THAT SINCE ROUGHLY TWOTHIRDS OF ALL DIVISION I BASKETBALL PLAYERS ARE
BLACK THE BURDEN OF THE REDUCTIONS HAS FALLEN HEAVIEST ON SUCH YOUNGSTERS
THIS IS ABOUT OPPORTUNITY DECLARED ARKANSAS COACH NOLAN RICHARDSON

IN FACT THOUGH TOP COLLEGE BASKETBALL TEAMS RARELY USE MORE THAN 10
PLAYERS AND MANY COACHES ARE LOATH TO HAVE TO DEAL WITH THE INEVITABLE
BENCH WARMERS WHO ARE INEVITABLY UNHAPPY THE ALACRITY WITH WHICH WHITE AS
WELL AS BLACK COACHES ENDORSED THE BOYCOTT CRY AND THE LANGUAGE THEY USED
SHOWED THAT THE FIGHT REALLY CENTERS ON WHETHER THE NEWLY EMPOWERED COLLEGE
PRESIDENTS OR SCHOOLS' ATHLETICS PROFESSIONALS WILL CONTROL THE GAME

FURTHER MANY COACHES HAVE LONG OPPOSED NCAA ACTIONS TO BOOST THE ACADEMIC
REQUIREMENTS FOR ATHLETICSCHOLARSHIP RECIPIENTS ALBEIT TO
STILLVERYMODEST LEVELS MAYBE THEY THINK THAT PHRASING THEIR PROTEST CRY
IN TERMS OF OPPORTUNITY WILL DEFLECT ATTENTION FROM THAT
LESSTHANADMIRABLE STANCE

IF IT'S EDUCATIONAL OPPORTUNITY THEY'RE INTERESTED IN THE COACHES MIGHT
CONSIDER PUSHING TO GIVE THE LOST BASKETBALL SCHOLARSHIPS TO NEEDY STUDENTS
WHO'VE PROVEN THEMSELVES IN THE CLASSROOM INSTEAD OF ON THE COURT ONCE IN
SCHOOL THESE KIDS COULD GO ABOUT THEIR BUSINESS WITHOUT THE TIMECONSUMING
NEED TO SHOULDER THEIR SCHOOLS' BIGMONEY SPORTS ENTERPRISES MAYBE THE
COACHES COULD FINANCE THE AWARDS WITH SOME OF THEIR INCOME FROM
ATHLETICSHOE ENDORSEMENTS AND TV SHOWS

IN DETROIT FOR THE US FIGURE SKATING CHAMPIONSHIPS THE SATURDAY BEFORE
LAST I ESCAPED THE FREEZING PRESSROOM FOR A WARM SEAT HIGH IN THE STANDS OF
JOE LOUIS ARENA DURING THE EARLY PHASE OF THE WOMEN'S SINGLES FINALS WHEN
THE SKATERS WHO DIDN'T FIGURE TO WIN PERFORMED A WOMAN SPOTTED MY PRESS
CREDENTIALS AND MOVED INTO THE SEAT NEXT TO ME

SHE ASKED IF I KNEW MUCH ABOUT A SKATER ON THE EVENING'S PROGRAM I SAID I
THOUGHT I KNEW A LITTLE SHE THEN LAUNCHED INTO A LENGTHY RECITATION ABOUT
THE UNSCRUPULOUS PEOPLE WHO SURROUNDED THIS YOUNG WOMAN THEIR PAST
MISDEEDS AND HOW THEY WERE EXPLOITING HER SHE CONCLUDED BY SAYING THAT SHE
WOULDN'T BE SURPRISED IF THE BUNCH HAD SOMEHOW BEEN BEHIND THE APPALLING
ASSAULT ON NANCY KERRIGAN TWO DAYS EARLIER

SNIFFING MANIA I UHHUHED MY WAY THROUGH HER SPIEL AND RETREATED AT
EARLIEST OPPORTUNITY A COUPLE DAYS LATER WHEN I HEARD A RADIO FLASH THAT
ANOTHER SKATER HAD BEEN IMPLICATED IN THE ATTACK I MENTALLY KICKED MYSELF
FOR NOT HAVING TAKEN NOTES

IT TURNED OUT THOUGH THAT THE SKATER SHE TOLD ME ABOUT WASN'T TONYA
HARDING

I ASK YOU IS SKATING A GREAT SPORT OR WHAT 9401210182 940121
ACMECLEVELAND SAYS IT WILL POST NET LOSS FOR FISCAL 1ST QUARTER

CLEVELAND ACMECLEVELAND CORP EXPECTS TO REPORT A NET LOSS DESPITE
MODESTLY HIGHER EARNINGS FROM OPERATIONS FOR THE FIRST QUARTER ENDED DEC
31 AND FOR THE YEAR ENDING NEXT SEPT 30 SAID DAVID L SWIFT CHAIRMAN AND
CHIEF EXECUTIVE OFFICER

IN AN INTERVIEW MR SWIFT CITED A LARGE EXTRAORDINARY CHARGE FOR
POSTRETIREMENT BENEFITS AS RESPONSIBLE FOR THE ESTIMATED NET LOSS FOR BOTH
PERIODS

IN THE YEAREARLIER FIRST QUARTER ACMECLEVELAND EARNED 13 CENTS A SHARE
FROM OPERATIONS AND IN THE FISCAL YEAR EARNINGS FROM OPERATIONS WERE 65
CENTS A SHARE NET INCOME WAS 12 MILLION OR 17 CENTS A SHARE FOR THE
1993 FIRST QUARTER AND 71 MILLION OR 107 A SHARE FOR THE FISCAL YEAR
NET FOR BOTH THE QUARTER AND YEAR INCLUDED EXTRAORDINARY TAX CREDITS AND
FISCALYEAR NET INCLUDED A GAIN FROM SETTLEMENT OF LITIGATION

SALES IN THE FISCAL 1994 FIRST QUARTER FELL BELOW THE 458 MILLION OF A
YEAR EARLIER BECAUSE OF A DROP IN COMMUNICATIONSPRODUCTS ORDERS MR SWIFT
SAID HOWEVER HE SAID SALES FOR THE FISCAL YEAR ARE EXPECTED TO RISE 3 TO
5 FROM THE 1749 MILLION OF FISCAL 1993

ACMECLEVELAND IS PRIMARILY A SUPPLIER TO THE AUTO INDUSTRY AND OTHER
DURABLEGOODS MANUFACTURERS AND IS BENEFITING FROM HIGH OPERATING RATES IN
THOSE INDUSTRIES IT SUPPLIES METALPRODUCTS MANUFACTURERS WITH DRILLS AND
OTHER EXPENDABLE TOOLS MULTIPLE SPINDLE LATHES MEASURING EQUIPMENT
SENSORS AND CONTROLS

THE COMPANY ALSO MAKES COMMUNICATIONS PRODUCTS RANGING FROM CLOSURES TO
PROTECT TELEPHONE LINE SPLICES TO COMPUTERIZED TESTING EQUIPMENT SALES OF
THOSE PRODUCTS ARE LOWER THAN A YEAR AGO

ACMECLEVELAND WILL REPORT A 1994 FIRSTQUARTER EXTRAORDINARY CHARGE OF
NEARLY 30 MILLION OR 469 A SHARE SAID EARL J BELLISARIO SENIOR VICE
PRESIDENT AND CHIEF FINANCIAL OFFICER THE CHARGE INCLUDES ABOUT 38 MILLION
OF POSTRETIREMENT BENEFIT COSTS PARTLY OFFSET BY A GAIN FROM A CHANGE IN
ACCOUNTING FOR DEFERRED INCOME TAXES 9401210179 940104 MORAL ISSUE WHY
DOES BRAZIL FACE SUCH WOES SOME SEE A BASIC ETHICAL LAPSE  
LEADERS PROFIT FROM INFLATION AND ACCEPT IT AS WELL AS CORRUPTION
VIOLENCE  THE POOR ARE LEFT TO SUFFER  BY THOMAS KAMM STAFF
REPORTER OF THE WALL STREET JOURNAL

SAO PAULO BRAZIL RONALDO CUNHA LIMA THE GOVERNOR OF THE NORTHEASTERN
STATE OF PARAIBA WAS UPSET HIS PREDECESSOR TARCISIO BURITY HAD ACCUSED
MR LIMA'S SON OF CORRUPTION SO LAST NOVEMBER MR LIMA WENT TO A
RESTAURANT WHERE MR BURITY WAS HAVING LUNCH PULLED OUT A GUN AND SHOT HIM
TWICE

IN THE NORTHEAST YOU WASH YOUR HONOR WITH A SHOT IN THE MOUTH MR LIMA
EXPLAINED TWO DAYS LATER BY THEN HE WAS ALREADY OUT OF JAIL AND HE SOON
RESUMED HIS FUNCTIONS

MEANWHILE WORDS OF SYMPATHY POURED IN FROM ALL OVER BRAZIL NOT FOR THE
VICTIM WHO MIRACULOUSLY SURVIVED BUT FOR HIS ASSAILANT THE GOVERNOR
ADOPTED A DIGNIFIED POSTURE BECAUSE HE WAS THE ONE WHO SHOT SAID THE
SPEAKER OF BRAZIL'S SENATE HUMBERTO LUCENA HAD HE ADOPTED A LESS
DIGNIFIED POSTURE HE WOULD HAVE SENT SOMEONE ELSE TO DO IT THE MUNICIPAL
COUNCIL OF CAMPINA GRANDE MR LIMA'S POLITICAL REDOUBT VOTED TO GRANT HIM
A MEDAL AND PARAIBA'S STATE LEGISLATURE OVERWHELMINGLY VOTED AGAINST A
SUPREME COURT REQUEST TO TRY MR LIMA BEFORE HIS TERM EXPIRES AT YEAR END

THIS ODD TALE MAY HELP ANSWER A VEXING QUESTION WHY IS BRAZIL LATIN
AMERICA'S GIANT MIRED IN CRISIS WHILE THE REST OF THE CONTINENT IS TAKING
OFF

PART OF THE ANSWER MANY SAY MAY LIE IN BRAZIL'S ETHICS JUST AS MANY
BRAZILIANS FAILED TO SEE ANYTHING GRAVELY WRONG WITH GOV LIMA'S ACTIONS
THEY HAVE LONG BEEN COMPLACENT ABOUT RUNAWAY INFLATION SYSTEMIC CORRUPTION
AND FRIGHTENING VIOLENCE RATHER THAN CONFRONT PROBLEMS HEADON BRAZILIANS
FIND WAYS TO AVOID THEM JUSTIFY THEM OR EVEN BENEFIT FROM THEM AND JUST AS
POLITICIANS RALLIED AROUND GOV LIMA SO DO OTHER ENTRENCHED GROUPS CLOSE
RANKS WHEN THREATENED ALLOWING PERSONAL OR PAROCHIAL INTERESTS TO OVERRIDE
COLLECTIVE ONES AND IMPEDING REFORMS

FORMER FINANCE MINISTER MAILSON DA NOBREGA CALLS THIS ETHOS A CULTURE OF
ACCOMMODATION CONGRESSMAN ROBERTO CAMPOS CALLS IT COLLECTIVE STUPIDITY
ECONOMIST ANTONIO KANDIR CALLS IT A PACT OF MEDIOCRITY BUT WHATEVER THE
NAME BRAZILIANS ARE INCREASINGLY REALIZING THAT IT BLOCKS THE COUNTRY'S
TURNAROUND AND THAT BRAZIL NEEDS MORE THAN STRUCTURAL ADJUSTMENT IT NEEDS
MORAL ADJUSTMENT

THE FUNDAMENTAL REASON WE CAN'T GET OUR ACT TOGETHER IS WE'RE AN AMORAL
SOCIETY SAYS LAWRENCE PIH A SAO PAULO BUSINESSMAN

THIS CREATES BIG PROBLEMS FOR THE GOVERNMENT A CONSTITUTIONAL REVISION TO
REMOVE SOME INFLATIONARY REQUIREMENTS IS BOGGED DOWN IN CONGRESS SO ARE
EFFORTS TO FIGHT INFLATION THROUGH AN INCOMETAX INCREASE AND SUSPENSION OF
A FEW CONSTITUTIONALLY MANDATED TRANSFERS OF TAX REVENUE TO STATES AND
MUNICIPALITIES THE POLITICAL CLASS DOESN'T HAVE THE CIVIC GRANDEUR TO STOP
THE COUNTDOWN TO A SOCIAL IMPLOSION WRITES JOELMIR BETTING A NEWSPAPER
COLUMNIST

SUCH IS BRAZIL'S RELUCTANCE TO SEE ITS PROBLEMS THAT JOSE AUGUSTO ASSUMPCAO
BRITO PRESIDENT OF A TRADE GROUP FOR SMALL COMPANIES CALLS IT A CASE FOR
AN OPHTHALMOLOGIST WHAT BRAZIL NEEDS IS A PAIR OF EYEGLASSES HE SAYS

BRAZIL'S DEEPSEATED PROBLEMS HAVE LONG BEEN MASKED BY THE SIZE AND DYNAMISM
OF ITS ECONOMY IN 1993 COMING OFF A RECESSION IT GREW BY ABOUT 45 BUT
THE UNEVEN DISTRIBUTION OF THIS GROWTH MAKES IT EVER HARDER TO IGNORE THE
CONSEQUENCES OF BRAZIL'S ANYTHINGGOES MENTALITY

THE SAME CONGRESS THAT OUSTED PRESIDENT FERNANDO COLLOR DE MELLO ON
CORRUPTION CHARGES LAST YEAR NOW IS ENGULFED IN A HUGE GRAFT SCANDAL OF ITS
OWN JUDGES LAWYERS AND OFFICIALS ARE ACCUSED OF COLLUDING IN A 12
BILLION SCHEME TO DEFRAUD THE SOCIALSECURITY SYSTEM THROUGH INFLATED
LABORCOURT SETTLEMENTS DOZENS OF POLICEMEN AND EVEN A RIO DE JANEIRO STATE
DEPUTY HAVE BEEN CHARGED WITH INVOLVEMENT IN DEATHSQUAD MASSACRES AND
PERCAPITA INCOME ADJUSTED FOR INFLATION HAS FALLEN 95 SINCE 1990
STUDIES SHOW THAT 32 MILLION BRAZILIANS 20 OF THE POPULATION LIVE
BELOW THE POVERTY LINE

THE NATIONAL CRISIS HAS EXCEEDED ALL LIMITS FORMER PRESIDENT JOSE SARNEY
WHO HIMSELF IS BATTLING ALLEGATIONS OF ILLICIT ENRICHMENT WROTE RECENTLY
HEROIC DECISIONS ARE NEEDED

SOME SAY BRAZIL IS HURTLING TOWARD HYPERINFLATION A SOCIAL EXPLOSION OR
EVEN A COUP INFLATION IS SO INTRACTABLE THAT ARNALDO JABOR A MOVIE
DIRECTOR AND COLUMNIST SEES ONLY ONE EXPLANATION WE DESIRE
HYPERINFLATION WE WANT TO SEE HOW LIFE IS AFTER DEATH

BUT OTHERS BELIEVE BRAZIL IS NEARING A CATHARTIC BREAK WITH ITS CULTURE OF
ACCOMMODATION AND THE POLITICAL SYSTEM THAT SUSTAINS IT JUST AS A WAVE OF
SCANDALS FINALLY LED ITALY TO START DISMANTLING THE ENTRENCHED ALLIANCE OF
CORRUPTION BETWEEN BUSINESS AND POLITICS SO BRAZIL'S CRISIS IS TRIGGERING
AN ETHICAL BACKLASH AND CALLS FOR A BRAZILIAN VERSION OF ITALY'S CLEAN
HANDS CRACKDOWN WE'RE ON THE VERGE OF A BIG BANG SAYS MARIO GARNERO A
PROMINENT BANKER THE WHOLE SYSTEM IS UNSUSTAINABLE

STARTING WITH THE OUSTER OF MR COLLOR BRAZIL HAS BEGUN REVERSING WHAT HAS
LONG BEEN ITS OWN VERSION OF CLEAN HANDS WASHING ITS HANDS OF GLARING
PROBLEMS

SUCH AS INFLATION WHICH MARCIO MOREIRA ALVES A POLITICAL SCIENTIST CALLS
THE MOTHER OF ALMOST ALL OTHER CRISES SINCE 1960 BRAZILIAN PRICES HAVE
MULTIPLIED A STAGGERING 22 BILLION TIMES ACCORDING TO ECONOMIST CELSO
MARTONE BRAZIL CHANGES CURRENCIES LIKE A BABY CHANGES DIAPERS SAYS
GUSTAVO FRANCO A CENTRAL BANKER FOUR TIMES IN SEVEN YEARS LOPPING OFF
THREE ZEROS NEARLY EVERY TIME EXCEPT FOR 1986 WHEN A LONG PRICE FREEZE
LIMITED INFLATION TO A MERE 65 THE ANNUAL RATE IN THE PAST DECADE HAS
NEVER BEEN UNDER 211 THE 1993 RATE OF 2567 SET A RECORD

AND YET VALENTINO RIZZIOLI CHIEF EXECUTIVE OF TWO MACHINERY COMPANIES
OWNED BY ITALY'S FIAT SPA CONTENDS THAT INFLATION DOESN'T EXIST IN
BRAZIL

HE ISN'T CRAZY PRICES RISE DAILY FOR HIM TOO BUT AS WITH MILLIONS OF
BRAZILIANS SO DOES HIS INCOME THANKS TO SOPHISTICATED INDEXATION RATHER
THAN ATTACK INFLATION BRAZIL LIVES WITH IT THROUGH A MECHANISM THAT ADJUSTS
WAGES AND ASSETS TO IT IN SOME CASES DAILY AS A RESULT CONGRESSMAN CAMPOS
SAYS PEOPLE ARE MORE PREOCCUPIED WITH HAVING A GOOD INDEXATOR THAN A LOW
INFLATION RATE EVEN THOUGH INDEXATION PERPETUATES INFLATION

THUS HAVE MANY BRAZILIANS LEARNED TO TOLERATE EVEN LIKE INFLATION FOR
SOME IT BRINGS BIG GAINS AT MR PIH'S FLOURMILLING COMPANY MOINHO
PACIFICO SA IT TURNED AN OPERATING LOSS EQUIVALENT TO 18 MILLION INTO A
36 MILLION PROFIT IN 1992

HOW DID HE DO IT HE BUYS FLOUR ABROAD AND HAS 180 DAYS TO PAY FOR IT BUT
HE MILLS THE FLOUR AS SOON AS IT IS DELIVERED AND SELLS IT FOR IMMEDIATE
PAYMENT HE PUTS THE MONEY INTO FINANCIAL INSTRUMENTS THAT PAY TWO
PERCENTAGE POINTS ABOVE INFLATION PER MONTH THE PRICE THAT BANKS HAVE TO
PAY TO ATTRACT DEPOSITS AFTER SIX MONTHS I'VE EARNED 12 MR PIH SAYS
SO IF I OWE 100 I HAVE 112 THAT 12 IS PROFIT THAT MORE THAN OFFSETS MY
OPERATING LOSS THIS GENERALIZED MAKES BUSINESS UNWILLING TO ATTACK
INFLATION

THE GOVERNMENT TOO IS MARRIED TO INFLATION SAYS EDMAR BACHA SENIOR
ADVISER AT THE FINANCE MINISTRY ITS REVENUE TAX RECEIPTS IS INDEXED
INCOME TAX PAID MONTHLY ISN'T CALCULATED IN BRAZIL'S CURRENCY THE
CRUZEIRO REAL BUT IN A UNIT OF ACCOUNT THE UFIR WHOSE VALUE RISES IN STEP
WITH INFLATION BUT THE GOVERNMENT'S EXPENDITURES ARE LARGELY UNINDEXED SO
THE LONGER IT WAITS TO SPEND MONEY ON PROGRAMS THE LESS IT ACTUALLY NEEDS
TO SPEND THE HIGHER THE INFLATION THE LOWER THE DEFICIT THE GOVERNMENT
DEPENDS ON SUPERINFLATION TO BALANCE ITS ACCOUNTS FINANCE MINISTER
FERNANDO HENRIQUE CARDOSO SAID RECENTLY THOUGH HE ADMITS THAT THIS CAN'T
GO ON MUCH LONGER

THE FLIP SIDE OF THIS SYSTEM HOWEVER IS A COLLAPSE IN PUBLIC SERVICES AND
A STEADY WORSENING OF DAILY LIFE FOR THE MAJORITY OF BRAZILIANS WHO LACK
PROTECTION FROM INFLATION THEIR VOICES HAVE LONG BEEN DROWNED OUT BY THE
PROINFLATION LOBBY AND IGNORED BY THE POLITICAL SYSTEM THE RULING CLASS
LOOKS AT INFLATION AND THE POVERTY CREATED BY IT WITH THE SAME NONCHALANCE
WITH WHICH IT CONTEMPLATED SLAVERY LAST CENTURY SAYS MR JABOR THE MOVIE
DIRECTOR POLITICAL SCIENTIST BOLIVAR LAMOUNIER WRITING IN THE NEWSPAPER
FOLHA DE SAO PAULO DESCRIBES THE GULF BETWEEN THOSE WHOSE INCOME IS INDEXED
AND THOSE WHO FEEL INFLATION AS MONETARY APARTHEID

INFLATION'S DESTRUCTIVE EFFECTS CAN BE SEEN IN JACAREZINHO A FAVELA OR
SHANTYTOWN NORTH OF RIO WHERE ABOUT 180000 PEOPLE LIVE IN CRAMPED BRICK
BUILDINGS IN A MAZE OF WINDING LANES THIS SLUM HAS A MEDICAL DISPENSARY
BUT NO DOCTOR HAS WORKED THERE FOR THREE YEARS BECAUSE THE SALARIES ARE SO
LOW RECENTLY HALF THE FAVELA WENT WITHOUT RUNNING WATER FOR TWO WEEKS

THE FAVELA HAS NO PUBLIC SCHOOLS THERE ARE A COUPLE OF PRIVATE ONES BUT
WITH TUITION RUNNING NEARLY HALF THE MINIMUM WAGE OF ABOUT 70 A MONTH FEW
CAN AFFORD IT WE HAVE HUNDREDS OF KIDS HERE WHO DON'T GO TO SCHOOL AND
STAY IN THE STREETS ALONE ALL DAY WHILE THEIR PARENTS ARE AT WORK SAYS
JOSE THOMAZ DA CONCEICAO PRESIDENT OF THE RESIDENTS' ASSOCIATION

AT NIGHT ARMED PEOPLE ROAM THE STREETS AND SOMETIMES DRUG GANGS DO BATTLE
IN FIREFIGHTS YOU'RE IN CONSTANT DANGER HERE SAYS JOSE CARLOS PEIXOTO A
YOUNG LAWYER WHO LIVES IN JACAREZINHO THERE'S A COMPLETE INVERSION OF
VALUES THOSE WHO WORK AND STUDY ARE BUMS THOSE WHO COUNT HERE ARE THE ONES
WHO ROB AND HAVE GUNS

THAT IS BECAUSE MANY WHO WORK EARN THE MINIMUM WAGE WHICH IS RAISED ONLY
ONCE EVERY FOUR MONTHS AND IS NEARLY WORTHLESS BY THE SECOND MONTH LAETITIA
CONSTANCIA DA SILVA A SLIGHT 29YEAROLD DEPENDS ON THE MINIMUM WAGE THAT
HER HUSBAND EARNS AT A SUPERMARKET PLUS HER OCCASIONAL INCOME AS A CLEANING
LADY TO FEED HER HUSBAND DAUGHTER TWO SISTERS AND FIVE YOUNG NEPHEWS THE
CHILDREN HAVE NO SHOES MRS DA SILVA'S DAUGHTER DOESN'T GO TO SCHOOL ONE
NEPHEW GOES TO A PUBLIC SCHOOL IN A NEARBY FAVELA WALKING THERE BECAUSE
THE BUS FARE COSTS TOO MUCH THE FAMILY MOSTLY EATS RICE AND BEANS
SOMETIMES COOKING GAS RUNS OUT BEFORE THE MONTH DOES WE CAN'T AFFORD MORE
THAN ONE BOTTLE MRS DA SILVA SAYS

PEOPLE IN JACAREZINHO ARE OUTRAGED BUT MOSTLY RESIGNED TO THEIR FATE
WHAT'S MY VOICE COMPARED TO THAT OF THE POWERFUL ASKS ELIANE MARQUES DOS
SANTOS A 42YEAROLD NURSE THE POWERFUL AREN'T EVEN BLIND TO OUR
PROBLEMS BECAUSE THE BLIND MIGHT NOT SEE BUT THEY FEEL THEIR WAY AROUND
HERE THE POWERFUL JUST CRASH THROUGH OUR PROBLEMS AS IF THEY DIDN'T EXIST

IN FACT SOME IN THE ELITE ARE STARTING TO TAKE NOTE THERE'S NOTHING MORE
ANTIETHICAL THAN INFLATION AT ITS CURRENT LEVEL EMERSON KAPAZ SAID
RECENTLY AS HE ACCEPTED BRAZIL'S BUSINESSMANOFTHEYEAR AWARD THE TIME
HAS MORE THAN COME FOR US BUSINESSMEN TO BECOME INDIGNANT ABOUT OUR OWN
PASSIVITY   INFLATION WILL DROP ONLY WHEN WE BECOME AWARE AS A
SOCIETY OF HOW EVIL IT IS

THE POLITICIANS HAVEN'T WOKEN UP HOWEVER EVERY ECONOMIC TEAM THAT COMES
TO POWER MAKES THE SAME DIAGNOSIS THE STATE IS BANKRUPT WE HAVE TO DO A
TAX REFORM WE HAVE TO PRIVATIZE SAYS FRANCISCO GROS A FORMER
CENTRALBANK PRESIDENT BUT YOU CAN'T CONVINCE THE POLITICIANS OF THE
GRAVITY OF THE SITUATION

IT IS A PROBLEM OF PERSONAL VS COLLECTIVE INTERESTS IN BRAZIL'S
PORKBARREL POLITICS A GOOD POLITICIAN IS ONE WHO BRINGS PUBLIC WORKS AND
PUBLICSECTOR JOBS TO HIS POWER BASE AND VOTES FOR GENEROUS SOCIAL MEASURES
CONGRESS IS LIKE A BIG TOWN COUNCIL FORMER FINANCE MINISTER DA NOBREGA
SAYS THEY WANT MONEY FOR A SOCCER FIELD OR A SQUARE THEY VOTE GENEROUS
WAGE BILLS SING THE NATIONAL ANTHEM AND THEN SEND THE BILL FOR IT ALL
ELSEWHERE

MOREOVER BRAZIL'S ELECTORAL SYSTEM IS HEAVILY WEIGHTED IN FAVOR OF THE
POOREST STATES WHICH WANT TO MAINTAIN THE STATUS QUO BECAUSE THEY RELY ON
STATE TRANSFERS FROM BRASILIA SAYS EDUARDO GIANNETTI DA FONSECA AN
ECONOMIST BRAZIL'S 1988 CONSTITUTION REQUIRED THE GOVERNMENT TO TRANSFER A
SIGNIFICANT PART OF TAX REVENUE TO STATES AND MUNICIPALITIES BUT DIDN'T
WITHDRAW CORRESPONDING RESPONSIBILITIES FROM BRASILIA

THE RESULT OF ALL THIS IS A SEEMINGLY UNSTOPPABLE INFLATIONARY MACHINE WE
SEE THE REFORMS HAPPENING IN CHILE ARGENTINA OR MEXICO BUT IT DOESN'T
TRANSLATE INTO PRESSURE TO DO THE SAME HERE BECAUSE CONGRESS'S LOGIC IS
DIFFERENT MR DA NOBREGA SAYS BRAZIL'S CONGRESS HAS A HIGH DEGREE OF
SOCIAL IRRESPONSIBILITY

NOWHERE IS THIS MORE EVIDENT THAN IN THE CURRENT CONGRESSIONAL SCANDAL
WHILE SOCIAL SERVICES COLLAPSED A GROUP OF DEPUTIES FUNNELED FUNDS RESERVED
FOR PHILANTHROPIC INSTITUTIONS INTO SHELL CHARITIES THEY CONTROLLED AND
THUS INTO THEIR OWN POCKETS ACCORDING TO A CONGRESSIONAL INVESTIGATIVE
COMMITTEE SEVERAL DEPUTIES ALSO INCLUDED BUDGETARY AMENDMENTS AUTHORIZING
OVERPRICED AND IN PART UNNEEDED PUBLIC WORKS IN RETURN FOR KICKBACKS FROM
CONTRACTORS THE COMMITTEE FOUND THAT THE BUDGET INCLUDED FUNDS TO BUILD
ALREADYBUILT OR PHANTOM HOSPITALS

MEANWHILE THE HOSPITAL DA POSSE THE BIGGEST PUBLIC HOSPITAL IN BAIXADA
FLUMINENSE THE HUGE SPRAWL OF POOR SUBURBS NORTH OF RIO WHERE MORE THAN
FIVE MILLION PEOPLE LIVE IS AN EMPTY SHELL ALMOST OUT OF MONEY THE
HOSPITAL HAS CLOSED ITS EMERGENCY UNIT AS WELL AS ITS SURGICAL PEDIATRIC
AND OBSTETRICS WARDS IT NO LONGER TAKES IN PATIENTS BECAUSE IT HAS NO FOOD
OR MEDICINE WHEN ITS TWO CASES OF XRAY FILM RUN OUT IT WILL CLOSE THAT
DEPARTMENT TOO JUST AS IT STOPPED DOING ULTRASOUND TESTS WHEN THE MACHINE
BROKE DOWN ALL IT STILL DOES IS OUTPATIENT CONSULTATIONS WHICH REQUIRE
JUST A PEN AND PAPER

WHERE DO SICK PEOPLE GO A LOT OF THEM GO TO THE CEMETERY SAYS THALES
CARDOSO DE MATTOS THE DIRECTOR THEY HAVE TO GO TO RIO WHICH IS OVER AN
HOUR'S DRIVE AWAY AND MANY DIE ON THE WAY THERE'S INTERNATIONAL ATTENTION
WHEN 10 STREET KIDS ARE MASSACRED BUT HERE 20 PEOPLE DIE A DAY IN A SILENT
MASSACRE

SUCH STUFF UNDERMINES DEMOCRACY DR DE MATTOS SAYS IT MAKES HIM WANT TO
TAKE UP ARMS MRS DOS SANTOS PINES FOR THE DAYS WHEN THE MILITARY RAN
THINGS YET BOTH LIKE MANY OTHERS SAY THAT IF BRAZIL'S ECONOMY GROWS
DESPITE ALL THIS ITS PROBLEMS AREN'T AS INTRACTABLE AS THEY SEEM IT'S NOT
MONEY THAT'S LACKING IN BRAZIL MRS DOS SANTOS SAYS IT'S SHAME SEE
RELATED LETTER LETTERS TO THE EDITOR BRAZILIANS COMMITTED TO CLEANING
HOUSE WSJ JAN 21 1994 9401040068 YY94 MM01 9401210176 940121
DIVIDEND NEWS FIRST FIDELITY BANCORP

FIRST FIDELITY BANCORP LAWRENCEVILLE NJ INCREASED ITS QUARTERLY
DIVIDEND 14 TO 42 CENTS A SHARE FROM 37 CENTS A SHARE PAYABLE FEB 8 TO
SHAREHOLDERS OF RECORD JAN 31 LAST WEEK FIRST FIDELITY REPORTED A 17
INCREASE IN FOURTHQUARTER EARNINGS TO 1044 MILLION 9401210175 940121
WHO'S NEWS NORWEST CORP

NORWEST CORP MINNEAPOLIS GERALD J FORD PRESIDENT OF MADISON
FINANCIAL INC WAS NAMED A DIRECTOR OF THIS BANKING CONCERN FILLING A
VACANCY 9401210174 940121 GAYLORD SAYS IT HAD TALKS ON A POSSIBLE
ALLIANCE'

NASHVILLE TENN GAYLORD ENTERTAINMENT CO SAID IT HAS TALKED WITH
SEVERAL COMPANIES IN RECENT MONTHS ABOUT THE POSSIBILITY OF FORMING A
STRATEGIC ALLIANCE

THE COMPANY'S COMMENTS WERE MADE IN RESPONSE TO A JAN 19 PAGEONE ARTICLE
IN THE WALL STREET JOURNAL IN THAT ARTICLE EW WENDELL PRESIDENT AND
CHIEF EXECUTIVE OFFICER OF THE MEDIA COMPANY INDICATED THAT GAYLORD HASN'T
ATTRACTED ANY SIGNIFICANT ACQUISITION ATTENTION

YESTERDAY IN A STATEMENT MR WENDELL SAID FROM TIME TO TIME OVER THE
PAST SEVERAL MONTHS THE COMPANY HAS RECEIVED PRELIMINARY CONTACTS FROM AND
HAS ENGAGED IN DISCUSSIONS WITH COMPANIES WITH WHOM THE COMPANY COULD FORGE
A STRATEGIC BUSINESS ALLIANCE HOWEVER NO SUCH DISCUSSIONS ARE ONGOING BY
EITHER THE COMPANY OR THE GAYLORD FAMILY INTERESTS

IN ADDITION MR WENDELL SAID GIVEN THE MAJORITY OWNERSHIP OF EDWARD L
GAYLORD AND HIS FAMILY IT IS DIFFICULT TO IMAGINE THE COMPANY BEING THE
SUBJECT OF A HOSTILE OR UNFRIENDLY TAKEOVER 9401210173 940121 WHO'S
NEWS GEORGE WIMPEY PLC

GEORGE WIMPEY PLC LONDON THIS BRITISH CONSTRUCTION COMPANY SAID ITS
FINANCE DIRECTOR ROGER WOOD IS RESIGNING AND WILL BE SUCCEEDED BY RICHARD
SAVILLE MR WOOD WILL LEAVE MARCH 31 TO PURSUE OTHER BUSINESS INTERESTS
IT SAID 9401210172 940121 EU COMMITTEE ON AIR INDUSTRY FINISHES STUDY
  GROUP REPORT SEEN CALLING FOR MORE COMPETITION SINGLE EXTERNAL
POLICY  BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL

BRUSSELS THE EUROPEAN UNION'S COMMITTEE OF WISE MEN EXAMINING THE
AVIATION INDUSTRY CRISIS REPORTEDLY CALLS FOR INDEPENDENT REVIEWS OF STATE
AID AND THE ADOPTION OF A SINGLE EU EXTERNAL RELATIONS POLICY IN ITS
UPCOMING REPORT

ACCORDING TO PEOPLE FAMILIAR WITH THE COMMITTEE'S FINDINGS THE REPORT
PLACES BLAME FOR THE AIRLINE INDUSTRY'S WOES ON LOW PRODUCTIVITY AMONG
EUROPEAN CARRIERS

THE COMMITTEE WAS APPOINTED IN JUNE BY EU TRANSPORT COMMISSIONER ABEL
MATUTES TO STUDY PROBLEMS CONFRONTING THE AIRLINE INDUSTRY AND PROPOSE
CONCRETE SOLUTIONS THE 12 AVIATION INDUSTRY OFFICIALS AND ANALYSTS
CONCLUDED THEIR WORK LAST WEEK AND ARE TO RELEASE THEIR REPORT FORMALLY FEB
1

BUT COPIES OF THE REPORT ARE CIRCULATING AND PEOPLE WHO HAVE SEEN IT SAY IT
TAKES A STRONG PROCOMPETITION STANCE

THE COMMITTEE REPORTEDLY FINDS NO LEGITIMATE REASON TO ROLL BACK THE EU'S
DEREGULATION OF THE SECTOR AND TARGETS GOVERNMENT SUBSIDIES AS A CORRUPTIVE
FORCE

THERE ARE SOME VERY CLEAR STATEMENTS ABOUT STATE AID AND LIBERALIZATION
SAID ONE INDUSTRY OFFICIAL WHO HAS SEEN THE REPORT SOME CONSERVATIVE
MEMBERS OF THE AIRLINE INDUSTRY MAY BE SHOCKED

ANOTHER PERSON FAMILIAR WITH THE REPORT PORTRAYED ITS CONCLUSIONS AS SAYING
IT'S UP TO THE MANAGEMENT AND SHAREHOLDERS TO GET ON WITH THE JOB

BUT THE REPORT IS SAID TO STOP SHORT OF BLAMING INDUSTRY WOES ON AIRLINE
EXECUTIVES AND TO SUGGEST THE FOLLOWING

 THE EU COMMISSION IMMEDIATELY SHOULD SET A CLEAR POLICY ON STATE AID IN
PARTICULAR THE COMMITTEE RECOMMENDS THAT ALL AIRLINE REQUESTS FOR STATE AID
BE ACCOMPANIED BY A RESTRUCTURING PLAN AND THAT AN INDEPENDENT AUDIT BE
CONDUCTED TO CHECK ON A PLAN'S FEASIBILITY BRITISH AIRWAYS PLC CALLED FOR
SUCH ACTION IN DECEMBER AT HEARINGS HOSTED BY THE COMMITTEE

UNDER CURRENT EU LAW SUBSIDIES ARE ILLEGAL UNLESS PRIVATE INVESTORS WOULD
MAKE THE SAME DECISION BASED ON POTENTIAL RETURNS BUT THE LACK OF EXPLICIT
RULES FREQUENTLY RESULTS IN COMPETITORS CHALLENGING COMMISSION DECISIONS
OFTEN ACCUSING THE COMMISSION OF ACTING ON POLITICAL RATHER THAN ECONOMIC
GROUNDS

 THE EU SHOULD ADOPT A SINGLE EXTERNAL AVIATION POLICY WITHIN THREE YEARS
THAT WOULD REPRESENT A SIGNIFICANT CHANGE FROM THE CURRENT SYSTEM UNDER
WHICH MEMBER STATES NEGOTIATE THEIR AVIATION TREATIES WITH NONEU COUNTRIES
INDIVIDUALLY LEGAL SCHOLARS HAVE ARGUED FOR YEARS THAT THE EU COULD EXTRACT
BETTER AGREEMENTS WITH THE US AND OTHER NATIONS IF IT ACTED AS A WHOLE

FURTHERMORE THE COMMITTEE REPORTEDLY LAYS OUT WHAT IT SEES AS THE IDEAL
EXTERNAL POLICY RECOMMENDING THAT THE EU AVOID CREATING A FORTRESS EUROPE
BY CLOSING ITS SKIES

 THE EU SHOULD CREATE A LEVEL PLAYING FIELD BY HARMONIZING LAWS AFFECTING
THE AIRLINE INDUSTRY SUCH AS FLIGHTTIME LIMITATIONS ON PILOTS AND
VALUEADDED TAX BUT ONE SOURCE SAID THE COMMITTEE CALLS FOR COSTBENEFIT
ANALYSES IN EACH CASE TO MAKE SURE THAT HARMONIZATION IS DONE AT THE BEST
POSSIBLE LEVEL

 THE EU SHOULD BREAK UP MONOPOLIES ON GROUND HANDLING AT AIRPORTS EXCEPT
WHERE IT CAN BE PROVEN THAT COMPETITION MAY THREATEN AIRPORT SAFETY
CURRENTLY SEVERAL OF EUROPE'S MAJOR AIRPORTS HAVE ONLY ONE COMPANY ALLOWED
TO CHECK IN PASSENGERS OR REFUEL PLANES AND MANY AIRLINES COMPLAIN OF
EXCESSIVE PRICING AIRPORTS COUNTER THAT ADDITIONAL GROUNDHANDLING COMPANIES
WOULD CREATE SAFETY HAZARDS

THE GROUP'S REPORT ALSO INCLUDES AN EXTENSIVE ANALYSIS OF THE EUROPEAN
AIRLINE INDUSTRY'S PERFORMANCE COMPARED WITH THAT OF THE US INDUSTRY THE
REPORTED CONCLUSION IS THAT WHILE US AND EUROPEAN AIRLINES PAY THEIR
EMPLOYEES ON ROUGHLY EQUIVALENT SCALES ON AVERAGE THE US CARRIERS GET
SIGNIFICANTLY BETTER PRODUCTIVITY FROM WORKERS

ON WEDNESDAY EVENING A SPOKESMAN FOR THE COMMITTEE DECLINED TO DISCUSS THE
REPORT THE COMMITTEE WILL NOT COMMENT ON THE REPORT AND ITS FINDINGS UNTIL
IT HAS BEEN FORMALLY PRESENTED TO COMMISSIONER MATUTES ON FEB 1 SAID
ANDRE CLODONG A DIRECTOR OF THE EUROPEAN AVIATION CLUB WHICH IS ACTING AS
SECRETARIAT TO THE COMMITTEE

TWO MEMBERS OF THE SPECIAL COMMITTEE WROTE STRONGLY WORDED DISSENTING
OPINIONS IN THE REPORT

FRENCH UNION OFFICIAL RENE VALLADON AND FRANKFURT AIRPORT VICE CHAIRMAN
MANFRED SCHOELCH DISAGREED WITH CERTAIN PROCOMPETITION PROPOSALS ACCORDING
TO A COPY OF THE REPORT OBTAINED BY THE WALL STREET JOURNAL EUROPE

MR VALLADON TOOK ISSUE WITH RECOMMENDATIONS ON SUBSIDIES AND WITH ITS CALL
FOR HIGHER LABOR PRODUCTIVITY THROUGH SUCH ACTION AS INCREASED WORKER
MOBILITY AND MR VALLADON AND MR SCHOELCH COMBINED EFFORTS IN WRITING A
DISSENT OVER THE COMMITTEE'S RECOMMENDATION TO DEREGULATE AIRPORT SERVICES
SUCH AS CHECKING IN PASSENGERS AND GROUND HANDLING FOR THE MOST PART
THOUGH THE COMMITTEE MEMBERS PRESENT A UNITED FRONT

WITH EUROPE'S MAJOR AIRLINES REPORTING A COMBINED LOSS OF ABOUT 4 BILLION
IN THE THREE YEARS THROUGH 1992 MR MATUTES CREATED THE COMMITTEE LAST YEAR
TO STUDY WHAT ACTION COULD BE TAKEN HIS MOVE FOLLOWED THE ESTABLISHMENT OF
A SIMILAR GROUP BY THE CLINTON ADMINISTRATION IN THE US THE US COMMITTEE
FINISHED ITS WORK LAST MONTH

THE EU COMMITTEE IS HEADED BY FORMER BELGIAN TRANSPORT MINISTER HERMAN DE
CROO 9401210171 940121 AMERICAN EXCHANGE CENSURES 8 INDIVIDUALS FOR
RULE VIOLATIONS

NEW YORK THE AMERICAN STOCK EXCHANGE TOOK DISCIPLINARY ACTION AGAINST
EIGHT PEOPLE FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS

UNLESS OTHERWISE NOTED THE INDIVIDUALS COULDN'T BE REACHED TO COMMENT

FORMER EF HUTTON & CO BROKER GEORGE ALLEN PHOENIX WAS FINED 10000
WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MADE TRADES IN CUSTOMER
ACCOUNTS WITHOUT PROPER AUTHORIZATION

FORMER ADVEST INC BROKER HARRY ARTIERI BUFFALO NY WAS BARRED FOR FIVE
YEARS WITH TWO YEARS DEEMED SERVED WITHOUT ADMITTING OR DENYING THAT HE
MADE UNAUTHORIZED TRADES IN A CUSTOMER ACCOUNT

JOHN CAREY BUFFALO NY A FORMER BROKER WITH ADVEST AND FIRST ALBANY
CORP WAS BARRED FOR FIVE YEARS HE DIDN'T ADMIT OR DENY RECOMMENDING
UNSUITABLE OPTION TRADES TO CUSTOMERS

LEWIS LEE COLLINS NORFOLK VA FORMER BRANCHOFFICE MANAGER AND REGISTERED
OPTIONS PRINCIPAL AT EF HUTTON WAS BARRED FOR TWO YEARS HE DIDN'T ADMIT
OR DENY THAT HE FAILED TO PROPERLY SUPERVISE A BROKER

FORMER KIDDER PEABODY & CO BROKER CRAIG DIMOND COSTA MESA CALIF WAS
BARRED FOR FIVE YEARS WITHOUT ADMITTING OR DENYING THAT HE MADE OPTIONS
TRADES WITHOUT PROPER AUTHORIZATION

SIDNEY J FEIN HOLLYWOOD FLA A FORMER EF HUTTON BROKER WAS FINED
10000 AND BARRED FOR ONE YEAR WITHOUT ADMITTING OR DENYING THAT HE
RECOMMENDED AND MADE UNSUITABLE OPTIONS TRADES FOR CUSTOMERS AND DIDN'T GET
PROPER AUTHORIZATION

A FORMER PRUDENTIAL SECURITIES INC BRANCHOFFICE MANAGER KEITH GEBLER
POMPANO BEACH FLA WAS CENSURED FOR PERMITTING A BROKER TO USE
UNAUTHORIZED DISCRETION IN A CUSTOMER'S ACCOUNT THIS ACTION GOES BACK TO
1985 AND PRUDENTIAL COULDN'T FIND THE DOCUMENTS THAT THE AMEX REQUESTED
BECAUSE THE ACTION WAS SO OLD MR GEBLER SAID THEREFORE WE COULDN'T
PROPERLY DEFEND OURSELVES

PRUDENTIAL SECURITIES BROKER JOHN OAKES SYRACUSE NY WAS FINED 10000
MR OAKES DIDN'T ADMIT OR DENY FINDINGS THAT HE FAILED TO PROPERLY SUPERVISE
ANOTHER BROKER 9401210170 940121 COLD WEATHER PROMPTS IRS TO WAIVE ITS
FUEL PENALTY

WASHINGTON THE INTERNAL REVENUE SERVICE IS GIVING A BREAK TO USERS OF
DIESEL FUEL DURING THE COLDWEATHER SNAP

THE IRS IS WAIVING A TAX PENALTY IT APPLIES WHEN NONTAXED FUEL SUCH AS THAT
USED FOR HOME HEATING OR FARMING OR BY STATE AND LOCAL GOVERNMENTS IS MIXED
WITH TAXABLE FUEL SUCH AS THE DIESEL FUEL THAT TRUCKERS USE

TO CRACK DOWN ON TAX EVASION IN THE DIESELFUEL INDUSTRY THE GOVERNMENT HAS
BEGUN REQUIRING THE ADDITION OF RED AND BLUE DYES TO NONTAXABLE FUEL THE
REQUIREMENT WHICH TOOK EFFECT JAN 1 IS INTENDED TO MAKE IT EASIER FOR IRS
INSPECTORS TO TELL WHEN A FUEL IS TAXABLE THE IRS EXPECTS THE CHANGE TO
BRING AN ADDITIONAL 1 BILLION IN REVENUES OVER THE NEXT FIVE YEARS

BUT THE COLD WEATHER CHILLING THE EAST COAST HAS RAISED CONCERNS OVER A
SHORTAGE OF HOME HEATING FUEL MOREOVER DURING THE EXTREME COLD IT IS
OFTEN NECESSARY TO ADD KEROSENE WHICH IS TAXABLE TO THE NONTAXED
HOMEHEATING FUEL TO IMPROVE VISCOSITY THE IRS RECOGNIZES THAT EXTREME AND
UNEXPECTED WEATHER CONDITIONS MAY NECESSITATE THE ADDITION OF UNDYED
PRODUCTS TO DYED FUEL THE AGENCY SAID

THE IRS SAID HOWEVER THAT IT WILL PENALIZE ANYONE WHO USES THE MIXED FUEL
FOR A TAXABLE PURPOSE 9401210169 940121 FINANCING BUSINESS DUAL
DRILLING CO

DUAL DRILLING CO DALLAS SAID IT WILL SELL 100 MILLION OF SENIOR
SUBORDINATED NOTES DUE 2004 AT AN INTEREST RATE OF 9 7/8 THE
OFFSHOREDRILLING COMPANY PLANS TO USE THE PROCEEDS ABOUT 965 MILLION TO
REPAY 866 MILLION OF EXISTING DEBT AND TO PAY PART OF THE COST TO ACQUIRE
OFFSHOREDRILLING EQUIPMENT DUAL ALSO SAID IT OBTAINED NEW FINANCING 25
MILLION OF REVOLVING CREDIT A 10 MILLION TERM LOAN AND A 15 MILLION BOND
IT SAID THE TERM LOAN WILL BE USED TO PAY THE REMAINING COST OF THE
OFFSHOREDRILLING EQUIPMENT 9401210168 940121 FINANCING BUSINESS 
SHERRITT INC

SHERRITT INC FORT SASKATCHEWAN ALBERTA SAID IT EXPECTS TO RECEIVE 194
MILLION CANADIAN DOLLARS US1481 MILLION AFTER EXPENSES FROM THE SALE TO
A GROUP OF UNDERWRITERS OF 185 MILLION NEW COMMON SHARES THE SHARES ARE
BEING SOLD AT C11 EACH FOR A TOTAL SALE PRICE OF C2035 MILLION THE
UNDERWRITING GROUP IS LED BY GORDON CAPITAL CORP AND SCOTIAMCLEOD INC
SHERRITT CURRENTLY HAS 433 MILLION SHARES OUTSTANDING SHERRITT WHICH HAS
INTERESTS IN NATURAL RESOURCES AND FERTILIZERS SAID IT WILL USE THE
PROCEEDS FOR GENERAL CORPORATE PURPOSES AND TO HELP FINANCE POSSIBLE FUTURE
ACQUISITIONS THE COMPANY SAID THIS COULD INCLUDE ITS PROPOSED ACQUISITION
OF TORONTOBASED IMPERIAL OIL LTD'S FERTILIZER OPERATIONS FOR AN ESTIMATED
C365 MILLION 9401210167 940121 APPLE COMPUTER NET PLUNGED 75 FOR
FISCAL PERIOD  PROFIT MARGINS CONTINUED TO SHRINK AS SHIPMENTS OF
MACINTOSHES SOARED  BY JIM CARLTON STAFF REPORTER OF THE WALL
STREET JOURNAL

APPLE COMPUTER INC CONTINUING TO FEEL THE SQUEEZE OF SHRINKING PROFIT
MARGINS SAID NET INCOME PLUNGED 75 FOR ITS FISCAL FIRST QUARTER ALTHOUGH
SHIPMENTS OF MACINTOSH PERSONAL COMPUTERS SOARED TO A RECORD ON DISCOUNTED
PRICES

THE PROFIT OF 40 MILLION OR 34 CENTS A SHARE FOR THE PERIOD ENDED DEC 31
COMPARED WITH NET INCOME OF 1613 MILLION OR 133 A SHARE FOR THE
YEAREARLIER QUARTER REVENUE INCREASED 23 TO 247 BILLION IN THE QUARTER
FROM 2 BILLION A YEAR AGO BOOSTED BY A YEAROVERYEAR 40 JUMP IN
SHIPMENTS OF MACINTOSH PCS TO A QUARTERLY RECORD OF MORE THAN 1 MILLION

THE PROFIT RESULTS SLIGHTLY EXCEEDED ANALYSTS' MEAN EXPECTATIONS FOR THE
CUPERTINO CALIFBASED COMPUTER MAKER TO EARN ABOUT 31 CENTS A SHARE FOR
THE QUARTER REVENUE WAS ABOUT AS ANALYSTS EXPECTED

THEY JUST REALLY PUSHED A LOT OF INVENTORY OUT ON THE MARKET BUT IT CAME AT
THE EXPENSE OF MARGINS SAID JOHN J GIRTON VICE PRESIDENT OF RESEARCH FOR
VAN KASPER & CO

APPLE RELEASED ITS EARNINGS AFTER THE CLOSE OF MAJOR FINANCIAL MARKETS
YESTERDAY ITS STOCK ROSE 625 CENTS CLOSING AT 29875 IN NASDAQ STOCK
MARKET TRADING

APPLE'S ONGOING QUANDARY THE PAST YEAR HAS BEEN TO CUT THE PRICES ON ITS
FLAGSHIP MACINTOSH LINE WHILE AT THE SAME TIME TRYING TO KEEP COSTS IN LINE
WITH SLIDING PROFIT MARGINS APPLE USED TO BE ABLE TO SELL THE MACINTOSH FOR
A PREMIUM OVER RIVAL PCS SINCE ITS OPERATING SYSTEM WAS EASIER TO USE BUT
THE EXPLOSION ONTO COMPETITIVE PCS IN RECENT YEARS OF MICROSOFT CORP'S
WINDOWS OPERATING SYSTEM WHICH EMULATES MACINTOSH'S EASE OF USE CRIPPLED
APPLE'S ONCEHEALTHY MARKETSHARE GAINS

SINCE SUCCEEDING JOHN SCULLEY AS APPLE'S CHIEF EXECUTIVE LAST SUMMER
MICHAEL SPINDLER HAS AIMED TO SHARPLY DISCOUNT THE MACINTOSH LINE TO GET
SALES BACK ON TRACK BECAUSE THE REDUCED PRICES HAVE SEVERELY CRIMPED PROFIT
MARGINS GROSS MARGINS FELL TO 24 OF NET SALES IN THE FIRST QUARTER FROM
NEARLY 41 A YEAR AGO APPLE HAS HAD TO UNDERGO MASSIVE COST CUTS
INCLUDING LAYOFFS OF 2500 EMPLOYEES LAST SUMMER

WHILE APPLE'S OPERATING EXPENSES FOR NET SALES WERE REDUCED IN THE QUARTER
FROM A YEAR AGO MR SPINDLER INDICATED IN A STATEMENT THAT OUR CHALLENGE
IS TO CONTINUE TO GROW OUR UNIT SHIPMENTS AND REVENUES WHILE WE MAKE FURTHER
PROGRESS IN REDUCING OUR OPERATING EXPENSES HE DIDN'T INDICATE IN THE
STATEMENT WHETHER MORE STAFF CUTS WERE ANTICIPATED ALTHOUGH WHEN ASKED THAT
AT A RECENT NEWS CONFERENCE MR SPINDLER RESPONDED YOU NEVER KNOW

THAT APPLE WAS ABLE TO ACHIEVE BIG GAINS IN MACINTOSH SALES DURING THE BUSY
CHRISTMAS SEASON IS A PLUS FOR THE COMPANY SINCE SOME ANALYSTS HAVE VOICED
CONCERN THAT BUYERS MIGHT AWAIT THE COMPANY'S PLANNED INTRODUCTION IN MARCH
OF A LINE OF MACINTOSHES BASED ON A NEW MICROPROCESSOR CALLED POWERPC THE
COMPANY SAID YESTERDAY THAT THE POWERPC LAUNCH REMAINS ON SCHEDULE

WHILE APPLE DEVELOPED POWERPC WITH TWO POWERFUL ALLIES INTERNATIONAL
BUSINESS MACHINES CORP AND MOTOROLA INC IT FACES TOUGH ODDS IN WRESTING
MUCH SHARE AWAY FROM WINDOWSBASED PC RIVALS BECAUSE WINDOWS COMMANDS 90 OF
THE PC MARKET THE WINDOWSBASED COMPUTERS ARE POWERED BY MICRPROCESSORS
MADE BY CHIPMAKER INTEL CORP A KEY MICROSOFT ALLY

APPLE ALSO IS COUNTING ON NEW BUSINESSES TO SHORE UP THE PROFIT LINE IT
RECENTLY ANNOUNCED IT WOULD SOON START A COMPUTERIZED ONLINE SERVICE AND
IS TRYING TO BUILD A PRODUCT LINE AROUND THE HANDHELD NEWTON MESSAGEPAD
INTRODUCED LAST SUMMER NEWTON THOUGH HAS GOTTEN OFF TO A SHAKY START
BECAUSE OF USERS' DIFFICULTY IN USING ITS VAUNTED HANDWRITING RECOGNITION
AND SO SALES HAVE BEEN DISAPPOINTING 9401210166 940121 NET OF HEALTHDYNE
 TECHNOLOGIES ROSE AN ESTIMATED 50

MARIETTA GA HEALTHDYNE TECHNOLOGIES INC EXPECTS TO REPORT THAT
FOURTHQUARTER EARNINGS JUMPED ABOUT 50 FROM A YEAR EARLIER ON A SALES
INCREASE OF MORE THAN 30 SAID CRAIG REYNOLDS PRESIDENT AND CHIEF
EXECUTIVE

THE MAKER OF MEDICAL DEVICES FOR HOME AND SPECIALIZED CLINICAL SETTINGS
ANTICIPATES THAT FOURTHQUARTER NET INCOME WILL TOTAL JUST ABOVE 15
MILLION COMPARED WITH 1 MILLION A YEAR EARLIER MR REYNOLDS SAID
PERSHARE EARNINGS WILL LIKELY EXCEED ANALYSTS' ESTIMATES OF 16 CENTS
ENDING UP IN THE RANGE OF 16 CENTS TO 18 CENTS REVENUE HE SAID TOTALED
ABOUT 20 MILLION IN THE QUARTER COMPARED WITH 152 MILLION IN THE 1992
FOURTH QUARTER

FOR ALL OF 1993 HEALTHDYNE TECHNOLOGIES EXPECTS TO REPORT NET INCOME OF
JUST ABOVE 5 MILLION COMPARED WITH 38 MILLION A YEAR EARLIER AGAIN MR
REYNOLDS SAID HE EXPECTS PERSHARE EARNINGS TO SLIGHTLY EXCEED ANALYSTS'
ESTIMATES OF 60 CENTS COMING IN AT 60 CENTS TO 62 CENTS REVENUE IN 1993
TOTALED ABOUT 68 MILLION MR REYNOLDS SAID COMPARED WITH 543 MILLION IN
1992

THE EXPECTED GAINS FOR THE QUARTER AND THE YEAR COME ON A LARGER NUMBER OF
AVERAGE SHARES OUTSTANDING ABOUT 93 MILLION IN THE JUSTCOMPLETED QUARTER
COMPARED WITH 75 MILLION A YEAR EARLIER AND ABOUT 84 MILLION FOR ALL OF
1993 COMPARED WITH 75 MILLION IN 1992

IN AN INTERVIEW MR REYNOLDS SAID HE IS VERY COMFORTABLE WITH ESTIMATES
THAT HEALTHDYNE TECHNOLOGIES WILL REPORT EARNINGS OF 70 CENTS TO 72 CENTS A
SHARE FOR ALL OF 1994 HE SAID HE ANTICIPATES GROWTH IN BOTH REVENUE AND
PROFIT OF BETWEEN 20 AND 25 FOR THE YEAR

REVIEWING THE COMPANY'S PERFORMANCE FOR THE FOURTH QUARTER AND YEAR MR
REYNOLDS NOTED THAT HEALTHDYNE TECHNOLOGIES HAD RECORD PERFORMANCES IN EACH
OF ITS THREE PRIMARY SEGMENTS DIAGNOSIS AND TREATMENT OF SLEEP DISORDERS
RESPIRATORY CARE AND INFANT MONITORING IN SLEEP DISORDERS THE
FASTESTGROWING AND MOST PROFITABLE OF THE THREE SEGMENTS REVENUE JUMPED
40 IN THE FOURTH QUARTER FROM A YEAR EARLIER MR REYNOLDS SAID
9401210165 940121 BASS SAYS LINES AREN'T HELPED BY UK RECOVERY 
 SPECIAL TO THE WALL STREET JOURNAL

LONDON BASS PLC TOLD SHAREHOLDERS THAT THE GENTLE RECOVERY IN THE UK
ECONOMY IS HAVING LITTLE BENEFIT ON ITS BUSINESS OF BREWING AND HOTELS

IAN PROSSER CHAIRMAN SAID AT THE ANNUAL MEETING THAT THE COMPANY WOULD
HAVE TO SEEK IMPROVEMENTS FOR THE YEAR AS A WHOLE FROM MANAGEMENT ACTION
RATHER THAN BUSINESS CONDITIONS

MR PROSSER SAID THE BEER BUSINESS HAD BEEN VOLATILE BUT THAT CHRISTMAS
SALES WERE SLIGHTLY ABOVE 1992'S LEVEL HOWEVER PROFIT MARGINS HAVE BEEN
PRESSURED BY COMPETITION

BASS SAID THAT IN ITS BASS TAVERNS DIVISION FISCAL 1994 PROFIT IS SLIGHTLY
AHEAD OF FISCAL 1993 ALTHOUGH THE DIVISION IS OPERATING NEARLY 10 FEWER
OUTLETS THE REDUCTION IN THE NUMBER OF OUTLETS WILL PROBABLY AFFECT BASS
TAVERNS' PROFIT BY ABOUT 9 MILLION 134 MILLION IN THE YEAR'S FIRST
HALF THE FISCAL YEAR ENDS IN SEPTEMBER

PROFITABILITY IS BEING BOOSTED BY COST REDUCTION BUT BASS REPEATED THAT
PROFIT WILL BE REDUCED AN ADDITIONAL 5 MILLION THIS YEAR BASS FIRST MADE
THAT ANNOUNCEMENT IN DECEMBER

IN ITS HOTELS OPERATIONS BASS SAID HOLIDAY INN WORLDWIDE DOLLAR PROFITS
CONTINUE TO MOVE FORWARD WITH THE ADDITION OF HOTELS A FURTHER 282 HOTELS
ARE TO BE OPENED TO ADD TO THE 1795 HOTELS THAT ALREADY OPERATE UNDER THE
NAME

IN THE US BOTH FRANCHISED HOTELS AND BASS'S COMPANYMANAGED HOTELS HAVE
IMPROVED REVENUE PER ROOM BY 17 AND 26 RESPECTIVELY IN EUROPE
HOWEVER HOLIDAY INN IS STILL EXPERIENCING DIFFICULT TRADING AVERAGE ROOM
RATES ARE DOWN MORE THAN 5 FROM A YEAR AGO ALTHOUGH THE UK HAS BEGUN TO
SHOW SOME IMPROVEMENT AFTER SEVERAL YEARS OF WEAK TRADING

OVERALL BASS SAID THAT DESPITE THE EXTRA COST OF DUTIES ANNOUNCED BY THE
GOVERNMENT IN LATE 1993 OPERATING PROFIT IS A LITTLE ABOVE THAT FOR THE
FIRST SIX MONTHS OF FISCAL 1993 BUT PRETAX PROFIT IS LIKELY TO BE BROADLY
IN LINE WITH THE YEAR BEFORE AS THE LOWER STERLING DEPOSIT RATES AND THE
STRONG DOLLAR HAVE MEANT HIGHER NET INTEREST PAYABLE 9401210164 940121
INTERNATIONAL BRITAIN'S GUINNESS AND FRANCE'S LVMH RESTRUCTURE THEIR
CROSSOWNERSHIP  BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL
STREET JOURNAL

LONDON GUINNESS PLC AND FRANCE'S LVMH MOET HENNESSY LOUIS VUITTON SA
RESTRUCTURED THEIR CROSSOWNERSHIP PERMITTING GUINNESS TO FOCUS ITS
INVESTMENT ON BUSINESSES THEY HAVE IN COMMON AND DISTANCE ITSELF FROM LVMH'S
OTHER ACTIVITIES

THE CHANGE DISENGAGES THE BRITISH BREWER AND DISTILLER FROM LVMH'S PERFUME
AND LUGGAGE BUSINESSES WHILE LINKING IT CLOSER TO THE FRENCH COMPANY'S
CHAMPAGNEANDCOGNAC UNIT AT THE SAME TIME IT WILL MAKE IT EASIER FOR LVMH
TO DIVERSIFY FURTHER INTO BUSINESSES THAT DON'T INTEREST GUINNESS

THIS IS THE FIRST GOOD NEWS FOR GUINNESS IN TWO YEARS SAID GRAEME EADIE
AN ANALYST AT NATWEST SECURITIES NOTING THAT THE COMPANY HAS BEEN HURT BY
THE RECESSION AND THE DECLINING CONSUMPTION OF SCOTCH WHISKY

ANALYSTS CAUTIONED THAT THE CHANGE WON'T HELP GUINNESS OVERCOME THESE
SHORTTERM PROBLEMS ANY TIME SOON STILL WITH INVESTORS FOCUSING ON THE
POTENTIAL LONGERTERM BENEFITS GUINNESS'S SHARES JUMPED 49 PENCE OR 10
TO 521 PENCE IN LATE TRADING ON THE STOCK EXCHANGE IN LONDON

LVMH'S STOCK HOWEVER DROPPED AMID CONCERNS BY INVESTORS THAT CHAIRMAN
BERNARD ARNAULT MIGHT USE PROCEEDS FROM THE RESTRUCTURING TO BUILD A MEDIA
EMPIRE THROUGH COSTLY ACQUISITIONS LAST AUGUST FOR INSTANCE LVMH ACQUIRED
CONTROL OF THE GROUPE DESFOSSES INTERNATIONAL A NEWSPAPER PUBLISHER LVMH'S
SHARES CLOSED AT 3899 FRANCS 657 DOWN 34 IN PARIS

UNDER THE ACCORD GUINNESS WILL SELL ITS 24 INDIRECT STAKE IN LVMH FOR
123 BILLION 184 BILLION AND ACQUIRE A 34 INTEREST IN LVMH'S MOET
HENNESSY SA WINE AND SPIRITS UNIT FOR 902 MILLION THIS WILL LOWER ITS DEBT
TO 37 OF EQUITY FROM 47

LVMH WILL REDUCE ITS HOLDING IN GUINNESS TO 20 FROM 24 BY JUNE 30 1995
BY SELLING THE SHARES TO UNRELATED INVESTORS FURTHER LVMH SAID CHRISTIAN
DIOR WHICH HAS INDIRECT CONTROL OF THE FRENCH COMPANY WILL BUY GUINNESS'S
STAKE AND FINANCE THE PURCHASE THROUGH A RIGHTS ISSUE THAT NEWS SENT
CHRISTIAN DIOR SHARES INTO A TAILSPIN ENDING AT 360 FRANCS DOWN 77 FROM
390 FRANCS

ANALYSTS HAD CRITICIZED GUINNESS FOR HOLDING A HUGE STAKE IN LVMH BUT HAVING
LITTLE SAY IN ITS BUSINESS NOW UNDER FRENCH LAW GUINNESS'S 34 STAKE IN
MOET HENNESSY GIVES IT MINORITY BLOCKAGE RIGHTS OR AN EFFECTIVE VETO ON
CERTAIN MAJOR STRATEGIC DECISIONS

MOREOVER GUINNESS STAYS CLEAR OF ANY FURTHER DIVERSIFICATION BY MR
ARNAULT

WE WILL NOT BE PART OF ANY NEW DIRECTION MEDIA OR OTHER THAT THEY PURSUE
IN THE FUTURE ANTHONY GREENER CHAIRMAN OF GUINNESS SAID A DIRECT
INVESTMENT IN THE CORE BRANDS OF WINES AND SPIRITS IS CLEARLY MORE
APPROPRIATE FOR US

ADDED NATWEST'S MR EADIE IT TAKES THE ARNAULT FACTOR OUT OF THE EQUATION
WHICH IS GOOD BECAUSE HE'S UNPREDICTABLE

GUINNESS WILL HAVE AN INVESTMENT GAIN OF 204 MILLION ON THE DISPOSAL BUT
OVERALL WILL END UP TAKING A CHARGE OF 173 MILLION AGAINST ITS 1993
EARNINGS RELATING TO GOODWILL WRITEOFFS GUINNESS SAID IT EXPECTS TO REPORT
PRETAX PROFIT FOR THE YEAR OF AT LEAST 875 MILLION BEFORE THAT EXCEPTIONAL
CHARGE IN 1992 GUINNESS HAD PRETAX PROFIT OF 795 MILLION

MR GREENER SAID THE OWNERSHIP RESTRUCTURING EVENTUALLY SHOULD LEAD TO MORE
DISTRIBUTION JOINT VENTURES WITH MOET HENNESSY THESE VENTURES GIVE THE TWO
COMPANIES MORE MARKETING CLOUT BY COMBINING THEIR WELLKNOWN BRANDS THE
BRITISH COMPANY'S GUINNESS BEER JOHNNIE WALKER AND DEWAR'S SCOTCH WHISKY
AND GORDON'S AND TANQUERAY GIN AMONG OTHERS AND LVMH'S DOM PERIGNON AND
MOET & CHANDON CHAMPAGNE AND HENNESSY COGNAC

GUINNESS'S TIES WITH LVMH GO BACK TO 1987 WHEN THEY BEGAN ESTABLISHING
DISTRIBUTION JOINT VENTURES GUINNESS INVESTED IN LVMH TO KEEP IT FROM
SPLITTING APART AND TO PROTECT THOSE JOINT VENTURES WHEN A BATTLE FOR
CONTROL OF LVMH BROKE OUT BETWEEN MR ARNAULT AND RIVALS 9401210163
940121 FOOD COMPANIES TARGET CHINESE IN DAIRY VENTURES  BY SALLY
D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL

HONG KONG SEVERAL GIANT FOOD COMPANIES ARE BETTING THEY CAN LAY TO REST
THE BELIEF THAT THE CHINESE DON'T LIKE CHEESE AND OTHER DAIRY PRODUCTS

THIS WEEK NESTLE SA ANNOUNCED PLANS FOR A JOINT VENTURE TO BUILD TWO
DAIRIES IN THE NORTHERN PORT CITY OF QINGDAO TO MAKE ICE CREAM AND YOGURT
THE SWISS FOOD COMPANY ALREADY OPERATES ONE DAIRY IN NORTHERN CHINA THAT
PRODUCES POWDERED MILK AND A PLANT IN GUANGDONG PROVINCE THAT MAKES COFFEE
AND NONDAIRY COFFEE CREAMERS

UNILEVER GROUP THE ANGLODUTCH CONSUMERPRODUCTS COMPANY LAST YEAR
ANNOUNCED PLANS TO BUILD A FACTORY IN BEIJING TO MAKE WALL'S ICE CREAM AND
KRAFT GENERAL FOODS INC A DIVISION OF PHILIP MORRIS COS OPENED A
JOINTVENTURE DAIRY IN BEIJING LAST YEAR KRAFT PRODUCTS ALREADY SOLD IN
CHINA INCLUDE INDIVIDUALLY WRAPPED CHEESE SLICES AND MIRACLE WHIP SALAD
DRESSING

SNOW BRAND MILK PRODUCTS CO JAPAN'S LARGEST DAIRYPRODUCTS MAKER
ANNOUNCED IT WILL OPEN AN OFFICE IN SHANGHAI AS PART OF ITS STRATEGY TO
EXPAND ITS GLOBAL OPERATIONS THE NEW OFFICE SNOW BRAND'S FIRST FOOTHOLD IN
CHINA WILL BE SET UP IN APRIL TO CONDUCT MARKET RESEARCH

KATE CLEVE NEWMAN WHO TRACKS RETAIL AND BEVERAGE COMPANIES AT KLEINWORT
BENSON SECURITIES ASIA LTD IN HONG KONG SAYS ASIANS TEND TO PREFER BLAND
OR SWEETTASTING DAIRY PRODUCTS SUCH AS ICE CREAM RATHER THAN BITTER ONES
SUCH AS SHARP CHEESE YOGURT FOR EXAMPLE IS A POPULAR SNACK IN SINGAPORE
BUT ONLY FOUND ITS MARKET ONCE MAKERS ADDED FRUIT TO BLOCK OUT THE NATURALLY
SOUR TASTE

IN SOME RURAL AREAS OF ASIA SALES OF DAIRY PRODUCTS LONG WERE HELD BACK BY
LACK OF REFRIGERATION AND POOR ROADS WHICH MAKE IT DIFFICULT TO DELIVER
FRESH FOOD THAT'S ONE REASON POWDERED AND CONDENSED MILKS WERE AMONG THE
FIRST BIG DAIRY SELLERS IN THE REGION

NESTLE'S NESPRAY POWDERED MILK IS POSITIONED AS A HEALTH FOOD IN CHINA
NESPRAY'S CHINA ADS DEVELOPED BY J WALTER THOMPSON CO FEATURE A YOUNG
COUPLE TEACHING ITS ONLY CHILD TO RIDE A BIKE

THE MARKET FOR ICE CREAM CHEESE AND YOGURT IS MORE DEVELOPED IN NORTHERN
AND NORTHEASTERN CHINA WHERE THE COOLER CLIMATE HELPS KEEP DAIRY PRODUCTS
FRESHER LONGER A KRAFT EXECUTIVE SAYS CHEESE ALSO HAS TRADITION BEHIND IT
IN NORTHERN CHINA IT WAS A FAVORITE FOOD OF A MING DYNASTY EMPRESS

IN SOUTHERN CHINA INCREASING WEALTH AND THE INFLUENCE OF HONG KONG MEDIA
ARE HELPING DEVELOP A MARKET FOR DAIRY PRODUCTS TWO WEEKS AGO PEPSICO
INC'S PIZZA HUT INTERNATIONAL DIVISION WHICH OPERATES FOUR RESTAURANTS IN
BEIJING OPENED ITS SEVENTH OUTLET IN GUANGZHOU PIZZA HUT EXECUTIVES SAY
CHINA AND INDIA ARE MAJOR TARGETS OF THEIR INTERNATIONAL EXPANSION

ONE FACTOR THAT BODES WELL FOR PIZZA SALES IN CHINA THE MILDTASTING
MOZZARELLA CHEESE NORMALLY USED ON PIZZA SUITS CHINESE TASTES AS DOES THE
BLAND CHEESE USED ON MCDONALD'S HAMBURGERS 9401210162 940121 CANADIAN
FIRMS' SHIPMENTS UP

OTTAWA CANADIAN MANUFACTURERS' SHIPMENTS INCREASED IN NOVEMBER FOR THE
FOURTH CONSECUTIVE MONTH RISING 05 FROM OCTOBER STATISTICS CANADA A
GOVERNMENT AGENCY SAID

THE RISE WAS LED BY THE PRIMARY METAL WOOD AND CHEMICAL INDUSTRIES

SHIPMENTS BY THE AUTO INDUSTRY DECLINED 27 IN NOVEMBER MAINLY BECAUSE OF
SOME TEMPORARY PLANT CLOSURES FOR MODEL CHANGES

MANUFACTURERS RECORDED A 1 RISE IN NEW ORDERS IN NOVEMBER BUT THEIR
BACKLOG OF UNFILLED ORDERS DECLINED 07 9401210161 940121 BRITAIN'S
PRUDENTIAL REPORTS 32 DECLINE IN BUSINESS MEASURE  SPECIAL TO
THE WALL STREET JOURNAL

LONDON PRUDENTIAL CORP OF BRITAIN SAID THAT NEW ANNUALIZED BUSINESS IT
GENERATED FOR 1993 FELL 32 TO 1016 MILLION 1516 MILLION FROM A
YEAREARLIER 105 MILLION

NEWBUSINESS PREMIUMS A COMMON MEASURE OF PERFORMANCE FOR BRITISH INSURERS
CONSISTS OF ANNUAL PREMIUMS PLUS 10 OF SINGLE PREMIUMS

WORLDWIDE NEW ANNUALPREMIUM SALES FOR 1993 FELL 9 TO 536 MILLION FROM
592 MILLION REFLECTING A CONTINUED RELUCTANCE BY CONSUMERS TO ENTER INTO
REGULAR LONGTERM FINANCIAL COMMITMENTS SAID PRUDENTIAL WHICH IS
UNRELATED TO PRUDENTIAL INSURANCE CO OF AMERICA

TOTAL NEW SINGLE PREMIUMS ROSE 5 TO 4798 MILLION FROM 4581 MILLION IN
THE UNITED KINGDOM SINGLEPREMIUM SALES GREW A HEALTHY 24 TO 2442
MILLION FROM 1974 MILLION REFLECTING STRONG SALES OF THE PRUDENCE BOND
AND PENSION BUSINESS

ANNUALPREMIUM SALES ON THE OTHER HAND FELL 12 IN THE UK TO 286
MILLION FROM 325 MILLION FOLLOWING AN EXPECTED DECLINE IN THE SALE OF
INDUSTRIAL BRANCH OR CASH COLLECTION POLICIES PRUDENTIAL SAID

SALES AT US SUBSIDIARY JACKSON NATIONAL LIFE WERE DISAPPOINTING
PRUDENTIAL SAID SHOWING A DECLINE IN SINGLE PREMIUMS TO 107 BILLION 16
BILLION FROM 158 BILLION JACKSON NATIONAL'S BUSINESS WAS ALSO AFFECTED
BY LOW INTEREST RATES AND COMPETITION FROM EQUITYBASED PRODUCTS

PRUDENTIAL SAID JACKSON NATIONAL HAS LAUNCHED A NEW RANGE OF ANNUITY
PRODUCTS WHICH SHOULD PROVE MORE ATTRACTIVE IN THE CURRENT ECONOMIC
CLIMATE IT ALSO SAID IT PLANS MORE PRODUCT LAUNCHES THIS YEAR
9401210160 940121 BENTSEN SAYS CHINA AGREES ON EFFORT TO CURTAIL COMPACT
DISK COUNTERFEITING  BY KENNETH H BACON AND KATHY CHEN STAFF
REPORTERS OF THE WALL STREET JOURNAL

BEIJING CHINA HAS AGREED TO ENFORCE COMPLIANCE WITH INTERNATIONAL
COPYRIGHT LAWS IN ORDER TO CURTAIL THE PRODUCTION OF COUNTERFEIT COMPACT
DISKS US TREASURY SECRETARY LLOYD BENTSEN SAID

THE AGREEMENT WITH VICE PREMIER ZHU RONGJI REMOVES ONE OF THE IRRITANTS IN
WHAT APPEARS TO BE A LESS CONFRONTATIONAL MORE PRODUCTIVE ECONOMIC
RELATIONSHIP EVOLVING BETWEEN CHINA AND THE US BEFORE HE LEAVES CHINA THIS
WEEKEND MR BENTSEN STILL HOPES TO WIDEN THE SCOPE OF SERVICES US AND
OTHER FOREIGN FINANCIAL SERVICE FIRMS CAN PROVIDE IN CHINA

IN RETURN THE US IS PREPARING TO OFFER CHINA A WIDER RANGE OF TECHNICAL
ASSISTANCE ON ISSUES RANGING FROM FINANCIAL REGULATION TO THE CONTROL OF
INFLATION CHINA'S INFLATION RATE IS RUNNING AT 20 A YEAR OR MORE AND
CHINESE LEADERS ARE BECOMING INCREASINGLY CONCERNED THAT THEIR ECONOMY IS
OVERHEATING MR BENTSEN SAID PRESIDENT JIANG ZEMIN TOLD HIM THAT THEY
WANTED TO MOVE DELIBERATELY TOWARD REFORM HE THOUGHT IT WAS VERY IMPORTANT
THAT THEY TEST OUT SOME OF THE FREEMARKET IDEAS MR BENTSEN SAID HE
EXPRESSED SOME RESERVATIONS ABOUT MAKING THE CHINESE CURRENCY FULLY
CONVERTIBLE

THERE ARE SOME OTHER SIGNS THAT CHINA WANTS TO MODERATE THE PACE OF ECONOMIC
REFORM LAST WEEK MR ZHU WHO IS ALSO THE GOVERNOR OF THE PEOPLE'S BANK OF
CHINA WARNED BANKS TO STICK WITH PREVIOUSLY ANNOUNCED CREDIT LIMITS
DESIGNED TO SLOW INFLATION ACCORDING TO CHINA DAILY AND PRESIDENT JIANG
WHILE TOURING STORES IN BEIJING CALLED FOR THE MAINTENANCE OF LOW PRICES

BUT THE CHIEF OF CHINA'S ANTIINFLATION EFFORTS MAY BE ABOUT TO CHANGE A
CHINESE SOURCE SAYS MR ZHU PLANS TO RESIGN AS HEAD OF THE BANK OF CHINA IN
MARCH HE WOULD CONTINUE AS A VICE PREMIER

SPECULATION ABOUT MR ZHU'S RESIGNATION HAS BEEN CIRCULATING FOR SOME TIME
AND MR ZHU ALREADY HAS SELECTED HIS SUCCESSOR THE SOURCE SAID

MR BENTSEN ANNOUNCED THURSDAY THAT WASHINGTON AND BEIJING HAVE AGREED ON
MEASURES TO ENSURE MORE EFFECTIVE PREVENTION OF THE EXPORT OF GOODS MADE
WITH PRISON LABOR CHINA HOPES THAT THE VERBAL ACCORD WILL DEFUSE
CONGRESSIONAL CONCERN ABOUT ITS HUMANRIGHTS POLICIES AND THEREBY HELP IT
WIN CONTINUATION OF ITS MOST FAVORED NATION TRADE STATUS WHICH GIVES IT THE
LOWEST POSSIBLE TARIFFS IN ITS TRADE WITH THE US 9401210159 940121 FRANC
ZONE GOVERNMENTS ARE PRESSURED TO ADOPT REFORMS TIED TO DEVALUATION 
 BY DAVID G PEARSON SPECIAL TO THE WALL STREET JOURNAL

PARIS THE ECONOMIC DEPRESSION THAT LED UP TO LAST WEEK'S DECISION TO
HALVE THE VALUE OF THE CFA AFRICAN FRANC TO 001 FRENCH FRANC WAS COMPARABLE
IN MAGNITUDE TO THE ECONOMIC MELTDOWN OF THE FORMER SOVIET UNION OFFICIALS
AT INTERNATIONAL FINANCIAL INSTITUTIONS SAY

THE ADJUSTMENT WAS DESIGNED TO CORRECT A CURRENCY MISALIGNMENT THAT HAD
EFFECTIVELY PRICED THE PRODUCTS OF SOME OF THE WORLD'S POOREST COUNTRIES OUT
OF THE WORLD MARKET

AND THE FINANCIAL PAIN THAT IT IS NOW CAUSING WILL HAVE BEEN IN VAIN IF THE
GOVERNMENTS IN THE CFA ZONE DON'T IMPLEMENT LONGDELAYED FISCAL MONETARY
AND WAGE DISCIPLINE ACCORDING TO EXPERTS AT THE WORLD BANK AND THE
INTERNATIONAL MONETARY FUND

ACCORDING TO ONE INTERNAL REPORT DISTRIBUTED PRIOR TO THE DEVALUATION IF
MAJOR POLICY REFORMS AREN'T IMPLEMENTED THE CURRENT DEPRESSION WHICH IS
ALREADY IN ITS EIGHTH YEAR WILL CONTINUE FOR ANOTHER FIVE TO 10 YEARS

THE MISALIGNMENT OF THE CFA FRANC NAMED AFTER THE COMMUNAUTE FINANCIERE
AFRICAINE STARTED IN THE MID1980S AND WORSENED STEADILY AS FRANCE AND
THE 14 CFA ZONE GOVERNMENTS FIRST TURNED A BLIND EYE TO AND THEN RESISTED
AN ADJUSTMENT FOR POLITICAL REASONS

THE CFA FRANC IS THE COMMON CURRENCY OF BENIN BURKINA FASO CAMEROON
CENTRAL AFRICAN REPUBLIC CHAD COMORES CONGO THE IVORY COAST EQUATORIAL
GUINEA GABON MALI NIGER SENEGAL AND TOGO ALL OF WHICH ARE FORMER
COLONIES OF FRANCE OR WERE UNDER ITS INFLUENCE THE EXCHANGE RATE HAD BEEN
UNCHANGED SINCE 1948 AT 50 CFA FRANCS TO ONE FRENCH FRANC MAKING IT THE
WORLD'S LONGESTLASTING FIXED PARITY UNCOMPETITIVE COMMODITIES THESE
COUNTRIES WERE SUFFOCATING IN SILENCE OBSERVED A WORLD BANK OFFICIAL WHO
DECLINED TO BE IDENTIFIED THE RELATIVELY HIGHVALUE CFA FRANC MADE THEIR
COCOA COFFEE LUMBER AND MINERALS HOPELESSLY UNCOMPETITIVE COMPARED WITH
RAW MATERIALS PRODUCED IN NEIGHBORING COUNTRIES DESPITE SOME TIMID ATTEMPTS
AT INTERNAL ECONOMIC ADJUSTMENT THE FRANC ZONE ECONOMIES SANK INCREASINGLY
DEEPER INTO DEPRESSION

BY 1992 REAL GROSS NATIONAL PRODUCT PER CAPITA IN THE CFA ZONE HAD SLUMPED
BY MORE THAN 20 TO 565 FROM THE 1985 LEVEL OF 721 TAKING INTO ACCOUNT A
3 ANNUAL POPULATION GROWTH

OVER THE 15 YEARS THROUGH 1985 THE FRANC ZONE HAD BEEN A HAVEN IN WHICH
ECONOMIES EXPANDED AT AN AVERAGE ANNUAL RATE OF BETWEEN 1 AND 2 EXPORTS
ROSE AND INFLATION WAS MODERATE COMPARED WITH NEIGHBORING COUNTRIES

BUT ITS COMPETITIVENESS STARTED TO ERODE IN 1985 BECAUSE OF THE PINCER
EFFECT OF FALLING COMMODITY PRICES AND THE APPRECIATION OF THE FRENCH FRANC
AGAINST THE DOLLAR THE FRENCH UNIT HAS SURGED 79 AGAINST THE DOLLAR SINCE
THE DOLLAR'S PEAK AT THE BEGINNING OF 1985

OVER THE YEARS THE IMF THE WORLD BANK AND MANY WESTERN GOVERNMENTS URGED A
DEVALUATION BUT FRANC ZONE LEADERS WERE HOSTILE TO THE IDEA BECAUSE OF THE
IMPACT IT WOULD HAVE ON THE LIVING STANDARDS OF CIVIL SERVANTS AND OTHER
ELITE MEMBERS OF SOCIETY WHO LOVE THEIR IMPORTS

IT'S NOT AN EXAGGERATION TO SAY THAT THE DEVALUATION WAS RESISTED ALL THESE
YEARS BECAUSE OF THE IMPLICATIONS FOR THE COST OF MERCEDESBENZ CARS AND
FRENCH CHAMPAGNE A WORLD BANK EXPERT SAID

BUT WHEN FRANCE'S CENTERRIGHT COALITION LED BY PRIME MINISTER EDOUARD
BALLADUR WAS ELECTED IN MAY 1993 AND WAS FACED WITH A GAPING BUDGET DEFICIT
IT DECIDED THE TIME HAD COME TO ACT

IMF AND WORLD BANK TEAMS ARE NOW HARD AT WORK IN THE FRANC ZONE COUNTRIES
PERSUADING GOVERNMENTS TO ADOPT PAINFUL MEASURES THAT MUST ACCOMPANY THE
DEVALUATION FRANCE ALREADY HAS INDICATED IT INTENDS TO WRITE OFF THE DEBT
OF THE POOREST FRANC ZONE COUNTRIES AND PLANS TO GIVE FASTDISBURSING AID TO
THE NEEDIEST THE IMF AND THE WORLD BANK ARE ASSEMBLING AID PACKAGES AND ARE
SUGGESTING WAYS TO STRENGTHEN ECONOMIC INSTITUTIONS IN THE AREA
9401210158 940121 BANKERS TRUST'S 4THPERIOD NET DOUBLED BANK OF BOSTON
UP 29 KEYCORP 14  BY G BRUCE KNECHT STAFF REPORTER OF THE WALL
STREET JOURNAL

BOOSTED BY RECORD TRADING REVENUE BANKERS TRUST NEW YORK CORP REPORTED
SHARPLY HIGHER FOURTHQUARTER EARNINGS TWO OTHER BANKS BANK OF BOSTON
CORP AND KEYCORP ALSO TURNED IN IMPROVED RESULTS WHILE SOCIETY CORP'S
EARNINGS DECLINED

BANKERS TRUST REPORTED EARNINGS MORE THAN DOUBLED WHILE BANK OF BOSTON
PROFIT ROSE BY 29 AND KEYCORP 14 ALTHOUGH SOCIETY WHICH PLANS TO MERGE
WITH KEYCORP LATER THIS YEAR HAD A 34 DECLINE IT WOULD HAVE SHOWN A 14
GAIN IF AN EXTRAORDINARY RESTRUCTURING CHARGE WAS EXCLUDED

WHILE WALL STREET HAS REACTED TO THE FOURTHQUARTER RESULTS OF OTHER BANKS
WITH STOCKPRICEDEPRESSING PROFIT TAKING INVESTORS WERE IMPRESSED WITH
BANKERS TRUST'S BETTERTHANEXPECTED RESULT IN COMPOSITE TRADING ON THE NEW
YORK STOCK EXCHANGE BANKERS TRUST COMMON SHARES ROSE 1125 OR 14 TO
CLOSE AT 79 BANK OF BOSTON STOCK ROSE 75 CENTS OR 31 TO 2475 BUT
KEYCORP STOCK FELL 125 CENTS OR 03 TO 36625 AND SOCIETY STOCK ALSO
DECLINED 125 CENTS OR 04 TO 3025 A SHARE

THE INCREASED EARNINGS WERE DRIVEN BY THE CONTINUED WIDE PROFIT MARGINS
BETWEEN THE BANKS' COST OF FUNDS AND THE RETURN THEY CAN EARN FROM LOANS AND
OTHER ASSETS AS WELL AS BETTERTHANEXPECTED TRADING PROFITS AND REDUCTIONS
IN LOAN LOSS PROVISIONS

FOR BANKERS TRUST THE MOST OBVIOUS HIGHLIGHT WAS 449 MILLION IN TRADING
REVENUE THE THIRD CONSECUTIVE QUARTERLY RECORD A BANK SPOKESMAN SAID
TRADERS BENEFITED FROM CONTINUED VOLATILITY IN INTEREST RATES AND CURRENCY
MARKETS

WHILE THE STOCK MARKET FEARS THAT THE BANK IS OVERRELIANT ON TRADING
ACTIVITIES WHICH ARE GENERALLY VIEWED AS A VOLATILE SOURCE OF EARNINGS
BANKERS TRUST'S RESULTS WERE FAIRLY BROADBASED FUNDMANAGEMENT REVENUE
REACHED A RECORD 185 MILLION UP 17 FROM THE PREVIOUS YEAR FEES AND
COMMISSIONS CLIMBED 33 TO REACH 192 MILLION ALTHOUGH NET INTEREST INCOME
WAS NOMINALLY DOWN IT INCREASED BY 5 IF EXTRAORDINARY ITEMS ARE EXCLUDED

THEY HAVE BEEN BUILDING A WIDER REVENUE BASE SAID JUDAH KRAUSHAAR AN
ANALYST WITH MERRILL LYNCH & CO AND THAT HELPS TO ASSURE INVESTORS THAT
THEIR RESULTS ARE SUSTAINABLE

IN THE TRADITIONAL BANKING BUSINESS LENDING MONEY THE REPORTING BANKS
BENEFITED FROM TWO INDUSTRYWIDE TRENDS LOAN GROWTH AND DECREASED LOANLOSS
PROVISIONS THOSE CHANGES WERE MORE THAN ENOUGH TO OVERCOME FLAT OR SLIGHTLY
DECREASING NET INTERESTRATE MARGINS

LOANLOSS PROVISIONS WERE CLEARLY A POWERFUL FACTOR IN THE QUARTER BANKERS
TRUST'S PROVISION WAS 23 MILLION DOWN FROM 50 MILLION IN THE YEAREARLIER
PERIOD AT BANK OF BOSTON THE PROVISION WAS 10 MILLION DOWN FROM 23
MILLION THE PROVISION AT CLEVELANDBASED SOCIETY WAS 13 MILLION DOWN FROM
31 MILLION

WHILE PROVISIONS WERE FALLING LENDING WAS GROWING SOCIETY'S LOANS
OUTSTANDING GREW AT A 12 ANNUALIZED RATE DURING THE QUARTER AND KEYCORP'S
AT A 55 RATE ACCORDING TO ANALYSTS

THE MOST IMPORTANT RESTRUCTURING CHARGES WERE RELATED TO THE KEYCORPSOCIETY
MERGER SOCIETY REPORTED A 40 MILLION CHARGE AS A RESULT OF THE MERGER
EXCLUDING THE CHARGE IT WOULD HAVE EARNED 97 MILLION OR 82 CENTS PER
SHARE IN THE QUARTER

KEYCORP WHICH IS BASED IN ALBANY NY ALSO HAD A NUMBER OF RESTRUCTURING
CHARGES SOME OF THEM A RESULT OF THE MERGER WITHOUT THE CHARGES KEYCORP'S
FOURTHQUARTER EARNINGS WOULD HAVE BEEN A RECORD 106 MILLION OR 101 PER
SHARE 9401210157 940121 GE'S EARNINGS INCREASED 10 IN FOURTH PERIOD
  BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL

GENERAL ELECTRIC CO'S FOURTHQUARTER EARNINGS ROSE 10 TO 148 BILLION
AND ANALYSTS SAW SIGNS OF A RECOVERING ECONOMY IN THE IMPROVED SALES PACE OF
CERTAIN GE BUSINESSES

FOURTHQUARTER REVENUE JUMPED 12 TO 1809 BILLION FROM 162 BILLION A
YEAR EARLIER THE INCREASE WAS SIGNIFICANTLY GREATER THAN THE 3 TO 4
INCREASES GE POSTED IN THE PRIOR THREE PERIODS THAT'S A FAVORABLE TREND
SAID RUSSELL LEAVITT AN ANALYST AT SALOMON BROTHERS

THIS SUGGESTS GOOD SALES AND EARNINGS IMPROVEMENTS THIS YEAR HE SAID
DECLARING THE COMPANY'S LATEST RESULTS A VERY GOOD PERFORMANCE

GE'S FOURTHQUARTER EARNINGS WHICH AMOUNTED TO 173 A SHARE WERE SLIGHTLY
BETTER THAN WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF 169 COMPILED BY
ZACKS INVESTMENT RESEARCH GE'S PROFIT IN THE YEAREARLIER PERIOD WAS 134
BILLION OR 157 A SHARE

GE SAID TWO OF THE COMPANY'S ECONOMYSENSITIVE BUSINESSES PLASTICS AND
APPLIANCES HAD GOOD GROWTH COMPARED WITH A YEAR AGO A SPOKESMAN SAID THE
PRETTY GOOD MOMENTUM IN THE SOCALLED SHORT CYCLE BUSINESSES SIGNALS A
STRENGTHENING ECONOMY BASED IN FAIRFIELD CONN GE'S OTHER BUSINESSES
INCLUDE MEDICAL EQUIPMENT LIGHTING FINANCIAL SERVICES AND BROADCASTING

IN THE FIRST THREE QUARTERS OF THIS YEAR MUCH OF GE'S SALES AND EARNINGS
GAINS CAME FROM THE SOCALLED LONG CYCLE BUSINESS SUCH AS POWER SYSTEMS
WHERE THE TIME BETWEEN ORDER AND DELIVERY IS LONG AND THUS THE BUSINESSES
AREN'T EASILY AFFECTED BY THE VAGARIES OF THE ECONOMY

THE LATEST RESULTS BROUGHT FULL YEAR NET INCOME TO 518 BILLION OR 606 A
SHARE BEFORE THE EFFECTS OF CERTAIN ACCOUNTING CHANGES THAT WAS UP 10
FROM THE 1992 PROFIT OF 473 BILLION OR 551 A SHARE WITHOUT THE
RESTRUCTURING CHARGES RELATED TO THE COMPANY'S DIVESTITURE OF ITS AEROSPACE
BUSINESS LAST YEAR NET INCOME ROSE 16 FROM 1992 REVENUE ROSE 6 TO 6056
BILLION FROM 5707 BILLION

ELEVEN OF GE'S 12 BUSINESSES POSTED HIGHER EARNINGS FROM CONTINUING
OPERATIONS COMPARED WITH A YEAR AGO TEN OF THEM POSTED DOUBLEDIGIT
INCREASES LED BY FINANCIAL SERVICES BROADCASTING AND PLASTICS GE SAID
THAT AS IT EXPECTED THE AIRCRAFTENGINE BUSINESS POSTED MUCH LOWER
EARNINGS THAN A YEAR AGO

GE SAID ALL BUSINESSES EXCEPT AIRCRAFT ENGINE POSTED INCREASED
OPERATINGPROFIT MARGIN BRINGING THE OVERALL OPERATING MARGIN TO A RECORD
125 UP FROM 1992'S COMPARABLE 115

GE'S STOCK CLOSED AT 10850 A SHARE DOWN 25 CENTS IN LATE TRADING ON THE
NEW YORK STOCK EXCHANGE 9401210156 940121 CANADIAN STEEL OUTPUT

OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 258558 METRIC TONS IN
THE WEEK ENDED SATURDAY A 56 INCREASE FROM 244812 TONS IN THE PREVIOUS
WEEK BUT A 33 DECLINE FROM 267404 TONS A YEAR EARLIER STATISTICS CANADA
A GOVERNMENT AGENCY SAID

A METRIC TON IS EQUAL TO 22046 POUNDS 9401210155 940121 HIGHER TAXES
ARE LIKELY IN CALIFORNIA AS OFFICIALS DEBATE FINANCING OF REPAIRS  
BY ANDY PASZTOR AND SARAH LUBMAN STAFF REPORTERS OF THE WALL STREET
JOURNAL

LOS ANGELES RESIDENTS OF THIS ECONOMICALLY DISTRESSED STATE ARE LIKELY TO
FACE HIGHER TAXES TO COVER SOME OF THE REPAIRS FROM MONDAY'S DEVASTATING
EARTHQUAKE BUT OFFICIALS HERE AND IN WASHINGTON ARE STILL GROPING FOR
ACCEPTABLE LONGTERM SOLUTIONS TO THE PROBLEM OF PAYING A RECONSTRUCTION
BILL THAT COULD CLIMB AS HIGH AS 30 BILLION

COMPARED WITH THE 1989 LOMA PRIETA EARTHQUAKE IN NORTHERN CALIFORNIA THIS
WEEK'S QUAKE CAUSED MUCH MORE EXTENSIVE DAMAGE TO SCHOOLS ROADS AND OTHER
PUBLIC FACILITIES IN THE DENSELY POPULATED SAN FERNANDO VALLEY AND NEARBY
COMMUNITIES THE PROSPECT OF SQUEEZING MOST OF THE REPAIR FUNDS FROM THE
STATE BUDGET ALREADY HEADED FOR A 5 BILLION DEFICIT BEFORE THE NATURAL
DISASTER STRUCK FRIGHTENS MANY ECONOMISTS AND STATE POLITICIANS

STATE AND FEDERAL RELIEF AGENCIES ARE TERRIFIC AT TAKING CARE OF PEOPLE'S
IMMEDIATE NEEDS SAID ALAN KREDITOR A PROFESSOR OF URBAN PLANNING AT THE
UNIVERSITY OF SOUTHERN CALIFORNIA WHO STUDIED THE AFTERMATH OF THE 1989
QUAKE BUT WE'RE NOT VERY GOOD AT COMING UP WITH POSTCRISIS REHABILITATION
PLANS THAT PROVIDE CONTINUING AID TO BUSINESSES AND LONGTERM REPAIR
BUDGETS FOR PUBLIC FACILITIES

LEARNING FROM PAST MISTAKES THE FEDERAL EMERGENCY MANAGEMENT AGENCY AND
OTHER FEDERAL AGENCIES ARE QUICKLY FUNNELING EMERGENCY HELP TO THE CITY
JUST YESTERDAY 11 FEDERAL EMERGENCY CENTERS OPENED THEIR DOORS PRESIDENT
CLINTON ALSO RELEASED AN ADDITIONAL 100 MILLION FOR IMMEDIATE ROAD REPAIRS
AND AUTHORIZED THE FEDERAL GOVERNMENT TO CONTINUE PAYING 100 OF CERTAIN
EMERGENCY SHELTER AND FOOD COSTS FOR HOMELESS RESIDENTS

BUT THE CLINTON ADMINISTRATION ALONG WITH STATE AND LOCAL OFFICIALS FACES
DIFFICULT CHOICES IN COMING UP WITH A FINANCING PLAN THAT WON'T
SIGNIFICANTLY INCREASE THE FEDERAL DEFICIT AND AVOIDS HITTING ECONOMICALLY
HARDPRESSED CALIFORNIA WITH A NEW ROUND OF HEFTY SALES AND GASOLINE TAXES

A MAJOR PROBLEM IS THAT RELIABLE DAMAGE ESTIMATES DON'T YET EXIST WHILE
GOV PETE WILSON HAS PROJECTED THAT QUAKE DAMAGE COULD CONSERVATIVELY BE
15 BILLION TO 30 BILLION MANY EXPERTS ARE SKEPTICAL SOME EVEN CALL THAT
ESTIMATE A PLOY TO PRESSURE WASHINGTON FOR MAXIMUM ASSISTANCE I HAVE NO
IDEA HOW THE GOVERNMENT JUSTIFIES THOSE FIGURES SAID JIM LEWIS DIRECTOR
OF THE STATE ASSEMBLY OFFICE OF RESEARCH AT THIS POINT NOBODY REALLY KNOWS
WHAT THE DAMAGES ARE

STILL STATE AND CITY COFFERS CAN'T POSSIBLY ABSORB ALL THE COSTS THE STATE
TRANSPORTATION DEPARTMENT'S HIGHWAY ACCOUNT FOR EXAMPLE NOW STANDS AT 130
MILLION AFTER A STEADY 18MONTH DECLINE SOME OUTSIDE ENGINEERS SAID THE
EVENTUAL COST OF REBUILDING DAMAGED ROADWAYS COULD BE FIVE OR SIX TIMES THAT
AMOUNT LIKEWISE STATE LEGISLATIVE ANALYSTS SAID CALIFORNIA ONLY HAS 50
MILLION AVAILABLE TO REPAIR THE LOCAL LIBRARIES COURTHOUSES AND OTHER CITY
AND COUNTY BUILDINGS THAT WERE DAMAGED

THOUGH LOS ANGELES MAYOR RICHARD RIORDAN HASN'T YET PROPOSED ANY SPECIFIC
FINANCING PLAN THE CITY NEEDS AUTHORIZATION FROM STATE LAWMAKERS TO RAISE
TAXES

SO FAR GOV WILSON HAS SHIED AWAY FROM THE IDEA OF IMPOSING NEW TAXES IN AN
ELECTION YEAR FOCUSING INSTEAD ON SHIFTING MONEY BETWEEN STATE ACCOUNTS AND
CALLING FOR WASHINGTON TO FOOT NEARLY THE ENTIRE BILL BUT CONGRESS IS
LIKELY TO RESIST THAT APPROACH AND MANY HERE BELIEVE THE GOVERNOR WILL HAVE
NO CHOICE BUT TO CALL FOR NEW TAXES EVEN IF THAT PROMPTS A BITTER FIGHT IN
THE STATE LEGISLATURE ASSEMBLY SPEAKER WILLIE BROWN JR THIS WEEK CAME OUT
IN FAVOR OF RAISING THE SALES TAX TO PAY FOR REPAIRS

UNLESS CALIFORNIA DEMONSTRATES THAT IT'S WILLING TO ABSORB HIGHER TAXES
SAID GOETZ WOLFF AN ECONOMIC CONSULTANT IT'S HARD TO MAKE THE ARGUMENT
THAT THE FEDERAL GOVERNMENT SHOULD SPEND AT A HIGHER RATE THAN NOW
ENVISIONED JOHN LANDIS AN ASSOCIATE PROFESSOR OF CITY PLANNING AT THE
UNIVERSITY OF CALIFORNIA AT BERKELEY AGREES ANOTHER INCREASE IN STATE
TAXES SEEMS INEVITABLE

MEASURES ALREADY BEING CONSIDERED BY CALIFORNIA LAWMAKERS RANGE FROM A
QUARTERCENT SALESTAX INCREASE TO AN ADDITIONAL GASOLINE TAX OF TWO CENTS
TO FIVE CENTS A GALLON THE CURRENT SALES TAX RANGES FROM 725 TO 850
DEPENDING ON LOCAL ADDITIONS IN ADDITION STATE TREASURER KATHLEEN BROWN
HAS SUGGESTED THE IMMEDIATE SALE OF 240 MILLION IN BONDS FOR WHICH
AUTHORITY ALREADY EXISTS MEMBERS OF THE CALIFORNIA LEGISLATURE HAVE
SUGGESTED SEEKING CALIFORNIA VOTERS' APPROVAL THIS JUNE FOR AN ADDITIONAL 2
BILLION OF NEW BOND AUTHORITY FOR QUAKERELATED REPAIRS

BUT SUCH MEASURES WHICH WOULD BE PAINFUL TO THE STATE'S RAVAGED ECONOMY
MAY STILL FALL SHORT OF FINANCING THE RECONSTRUCTION UNDER CALIFORNIA'S
CONSTITUTION REVENUE RAISED BY A FUEL TAX CAN ONLY BE USED FOR HIGHWAY
REPAIRS THAT LEAVES UNANSWERED THE QUESTION OF FUNDING TO REBUILD SCHOOLS
WATER AND SEWER LINES AND THE THOUSANDS OF HOMES AND BUSINESSES BADLY
DAMAGED BY THE QUAKE HOMEOWNERS HAVE ACCESS TO LOWINTEREST FEDERAL LOANS
TO MAKE REPAIRS BUT ECONOMISTS SAY THAT OWNERS OF SMALL BUSINESSES AND
APARTMENT BUILDINGS THROUGHOUT THE REGION MAY NOT BE ABLE TO RELY ON SUCH
FEDERAL HELP AND MAY NEED SPECIAL STATE ASSISTANCE

MEANWHILE DAMAGE FROM THE QUAKE CONTINUED TO CLIMB EIGHTEEN HOSPITALS HAVE
BEEN EVACUATED OR FORCED TO CURTAIL SERVICE BECAUSE OF STRUCTURAL OR OTHER
DAMAGE WITH RAIN FORECAST FOR THE WEEKEND THOUSANDS OF PEOPLE STILL WERE
CAMPED OUT IN PARKS YARDS COMMUNITY CENTERS AND EVEN CARS PUBLICHEALTH
EXPERTS WARNED THAT MANY RISK ILLNESSES CAUSED BY BACTERIA FROM GARBAGE AND
RAW SEWAGE

IN NORTHERN CALIFORNIA THE LOMA PRIETA EARTHQUAKE CAUSED DAMAGE ESTIMATED
AT AS MUCH AS 7 BILLION LESS THAN 1 BILLION OF WHICH WAS COVERED BY
PRIVATE INSURANCE WHILE THE STATE RAISED 7945 MILLION FROM A 13MONTH
QUARTERCENT SALESTAX INCREASE PASSED SOON AFTER THAT QUAKE THE SAME TAX
IN TODAY'S ECONOMY WOULD YIELD ABOUT 100 MILLION LESS ACCORDING TO STATE
LEGISLATIVE ESTIMATES

MOREOVER LEGISLATORS AND OTHERS ARGUE THAT ADDITIONAL TAXES COULD DELAY THE
STATE'S ECONOMIC RECOVERY WITH CALIFORNIA IN A FOURYEAR RECESSION AND
ALREADY FEELING THE IMPACT OF SEVERAL SALESTAX INCREASES INITIAL COMMENTS
SUGGEST TO ME THAT THE NEEDED TWOTHIRDS VOTE CAN'T BE ATTAINED FOR ANOTHER
TAX INCREASE SAID STATE SEN BILL LOCKYER A DEMOCRAT WHO LATER THIS MONTH
WILL BECOME PRESIDENT PRO TEM OF THE STATE SENATE

OFFICIALS AT THE LOS ANGELES UNIFIED SCHOOL DISTRICT SAY DAMAGE TO SCHOOLS
COULD REACH 700 MILLION ABOUT 100 OF THE DISTRICT'S 640 SCHOOLS WERE
DAMAGED SOME SEVERELY AND ABOUT 200000 OF ITS 640000 STUDENTS DON'T HAVE
WORKING CLASSROOMS

THERE IS NO MONEY IN THE SCHOOL DISTRICT FOR THIS SAID LETICIA QUEZADA
SCHOOL BOARD PRESIDENT SHE ADDED THAT WHILE SHE PLANNED TO ASK THE STATE
FOR MONEY SHE WAS BOTHERED BY WHAT APPEARS TO BE GROWING DISAGREEMENT OVER
HOW THE STATE AND FEDERAL GOVERNMENT WILL SHARE DISASTERRELIEF COSTS IT'S
DISHEARTENING TO ME AS A LOCAL OFFICIAL BECAUSE NOW THEY'LL GO BACK AND
FORTH AND MEANWHILE OUR KIDS CAN'T GO TO SCHOOL MS QUEZADA SAID

FOR THE ADMINISTRATION AND CONGRESSIONAL LEADERS THE PRESSURE TO REDUCE THE
DEFICIT CLEARLY IS MUCH GREATER THAN IT WAS FOLLOWING THE LOMA PRIETA QUAKE
DESPITE MR CLINTON'S PERSONAL PLEDGE TO CONSIDER REDUCING OR ELIMINATING
ALTOGETHER LOCAL MATCHINGFUND REQUIREMENTS FOR MANY OF THE REPAIRS THE
FEDERAL GOVERNMENT'S EMERGENCYDISASTER ACCOUNTS WERE NEARLY DRAINED BY THE
MIDWEST FLOOD LAST YEAR AND EFFORTS TO HELP SOUTH FLORIDA RECOVER FROM
HURRICANE ANDREW IN 1992

NORMALLY THE FEDERAL GOVERNMENT PAYS 75 AND STATE AND LOCAL GOVERNMENTS
PAY 25 OF THE COST OF REPAIRING PUBLIC FACILITIES AND INFRASTRUCTURE
FOLLOWING A DISASTER THE FEDERAL LEVEL CAN BE INCREASED BY THE PRESIDENT TO
90 AND IN SOME INSTANCES HAS RISEN TO 100 OF CERTAIN COSTS

THUS WHILE SOME STATE LAWMAKERS SAY THEY ARE STARTING TO CONSIDER NEW TAXES
AND BOND FINANCING OTHERS SUGGEST A DIFFERENT STRATEGY THAT ONE SAYS TIM
GAGE CHIEF CONSULTANT TO THE ASSEMBLY'S WAYS AND MEANS COMMITTEE IS TO
JUST TOUGH IT OUT AND SEE HOW MUCH THE FEDS GIVE US

FREDERICK ROSE CONTRIBUTED TO THIS ARTICLE 9401210154 940121
INTERNATIONAL ANGLO AMERICAN GOLD MINES

JOHANNESBURG SOUTH AFRICA MINING HOUSE ANGLO AMERICAN CORP OF SOUTH
AFRICA SAID NET INCOME FOR ITS FIVE GOLD MINES GREW 22 TO 2751 MILLION
RAND 806 MILLION IN THE FOURTH QUARTER OF 1993 FROM 2692 MILLION RAND
IN THE THIRD QUARTER

ANGLO AMERICAN'S LARGEST MINE FREE STATE CONSOLIDATED GOLD MINES LTD
KNOWN AS FREEGOLD SHOWED A 46 INCREASE IN NET INCOME TO 127 MILLION RAND
IN THE FOURTH QUARTER FROM 1214 MILLION RAND 9401210153 940121 ATCHISON
CASTING LETTER OF INTENT

ATCHISON KAN ATCHISON CASTING CORP SAID IT SIGNED A LETTER OF INTENT
TO PURCHASE CLOSELY HELD PROSPECT FOUNDRY INC OF MINNEAPOLIS TERMS
WEREN'T DISCLOSED

ATCHISON CASTING SAID THE DEAL IS SUBJECT TO COMPLETION OF DUE DILIGENCE AND
THE SIGNING OF A DEFINITIVE ACCORD PROSPECT FOUNDRY PRODUCES IRON CASTINGS
9401210152 940121 UNIVEST UNIT TO BUY BRANCH

SOUDERTON PA UNIVEST CORP'S UNION NATIONAL BANK UNIT REACHED AN
AGREEMENT TO ACQUIRE CONTINENTAL BANK'S PLUMSTEADVILLE PA BRANCH OFFICE

TERMS WEREN'T DISCLOSED

UNIVEST OFFERS FINANCIAL SERVICES TO 16 MONTGOMERY PA AND BUCKS COUNTY
COMMUNITIES CONTINENTAL BANK IS A UNIT OF MIDLANTIC CORP

IN A NEWS RELEASE UNIVEST SAID THE ACQUISITION WOULD INCREASE UNION
NATIONAL'S DEPOSITS BY ABOUT 16 MILLION

SUBJECT TO REGULATORY APPROVAL UNION NATIONAL PLANS TO ASSUME COMPLETE
OPERATIONS OF THE BRANCH IN THE SECOND QUARTER 9401210151 940120 EARNINGS
SURPRISES

COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT
FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT
LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES

THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE
AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS
OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9401210150
940121 CORPORATE FOCUS AST ENJOYS THE SUCCESS OF THE LONGDISTANCE RUNNER
  PURCHASE OF TANDY PC UNIT HELPED BOOST FISCAL 2NDPERIOD REVENUE
95  BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL

IRVINE CALIF AS PERSONALCOMPUTER COMPANIES GO AST RESEARCH INC IS
SOMETHING OF A MARATHON RUNNER WHILE MANY UPSTART RIVALS GATEWAY 2000
FOR EXAMPLE OR DELL COMPUTER CORP HAVE SEEN SALES RACE FORWARD IN
DRAMATIC SPURTS AST HAS PLODDED ON METHODICALLY

WHILE AST MAY LACK THE SPRINTER'S GLAMOUR IT HAS SURVIVED TO BECOME ONE OF
THE BIGGEST PC MAKERS IN THE COUNTRY ITS LATEST EARNINGS UNDERSCORE ITS
GOOD HEALTH IN THE FISCAL SECONDQUARTER ENDED JAN 1 ITS PROFIT ROSE
226 TOPPING ANALYSTS' ESTIMATES IN NASDAQ STOCK MARKET TRADING LATE
YESTERDAY AST WAS QUOTED AT 29125 UP 4375

AST'S REVENUE JUMPED 95 TO 677 MILLION FROM 3463 MILLION A YEAR AGO
REFLECTING STRONG GROWTH WORLDWIDE AND THE COMPANY'S ACQUISITION OF TANDY
CORP'S PC BUSINESS LAST SUMMER LIKE OTHER BIG PC MAKERS AST HAS BENEFITED
AS CUSTOMERS SHIFT TO BRANDNAME PCS FROM LESSERKNOWN CLONES FROM A
MOMENTUM PERSPECTIVE THEY HEAD INTO 1994 IN INCREDIBLY GOOD SHAPE SAYS
STEVEN ESKENAZI PRINCIPAL IN ALEX BROWN & SONS

AST REPORTED FISCAL SECONDQUARTER NET INCOME OF 179 MILLION OR 54 CENTS
A SHARE UP FROM 146 MILLION OR 46 CENTS A SHARE IN THE YEARAGO PERIOD
FINANCIAL ANALYSTS HAD EXPECTED NET INCOME OF ABOUT 45 CENTS A SHARE

ANALYSTS SAY AST'S PROFIT WAS HIGHER THAN ANTICIPATED BECAUSE THE COMPANY
DIGESTED ITS TANDY ACQUISITION WITH UNEXPECTED SPEED THE COMPANY TOOK A
ONETIME PRETAX CHARGE OF 125 MILLION IN THE FISCAL FOURTHQUARTER TO COVER
THE 175 MILLION TRANSACTION SAFI QURESHEY AST'S COFOUNDER AND CHIEF
EXECUTIVE OFFICER SAYS THE ACQUISITION GAVE HIS COMPANY THE MANUFACTURING
CAPACITY IT NEEDED LAST YEAR TO KEEP PACE WITH INCREASED DEMAND

WE SEE '94 TO BE A STRONG YEAR MR QURESHEY ADDS WE WILL CONTINUE TO
POSITION AST VERY WELL AS A TIERONE COMPANY THAT IS VERY FOCUSED

UNDER MR QURESHEY AST HAS QUIETLY MADE FORMIDABLE STRIDES IN MARKET SHARE
BY MAINTAINING A BROAD LINE OF UPDATED PRODUCTS AND DISTRIBUTING THEM
WIDELY LAST YEAR AST'S US SHIPMENTS NOT INCLUDING TANDY'S GREW 66
TO 530000 MACHINES SAYS INTERNATIONAL DATA CORP A FRAMINGHAM MASS
MARKET RESEARCH FIRM INCLUDING TANDY'S SALES AST WAS THE NO 5 PC MAKER IN
THE US LAST YEAR JUST AHEAD OF DELL

AST'S GOAL LIKE THOSE OF MOST OTHER PC MAKERS IS TO CONTINUE GRABBING
ENOUGH EXTRA MARKET SHARE TO OFFSET FALLING PROFIT MARGINS AT ITS PRESENT
COURSE AST COULD ONE DAY RIVAL THE VOLUME OF THE BIG THREE PC MAKERS
INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC AND COMPAQ
COMPUTER CORP SOME OBSERVERS SAY

MR QURESHEY IS A VERY DETERMINED CHARACTER AND IS PRETTY INTENT ON WINNING
AT THIS GAME SAYS STEVEN RAYMUND CHAIRMAN AND CHIEF EXECUTIVE OF TECH
DATA CORP A CLEARWATER FLA DISTRIBUTOR OF COMPUTERS ADDS KENNETH R
WATERS PRESIDENT OF MICROAGE INC A TEMPE ARIZ DISTRIBUTOR HE'S
CERTAINLY DOING THE THINGS HE NEEDS TO DO TO BE THERE IN THE EVENT ONE OF
THE OTHER COMPANIES STUMBLES

NO ONE WOULD HAVE PEGGED AST AS A CONTENDER 14 YEARS AGO WHEN MR QURESHEY
AND COFOUNDERS ALBERT WONG AND THOMAS YUEN LAUNCHED THE FIRM AS A TINY
MAKER OF ADDONS TO IBM'S ORIGINAL PC JUST BEFORE THE MARKET FOR ADDONS
CRATERED WHEN IBM AND OTHERS STARTED SHIPPING PCS WITH MORE FEATURES AST
SAW ITS VULNERABILITY AND STARTED MAKING PCS AS WELL

FOLLOWING A STRONG START AST POSTED A LOSS IN FISCAL 1989 AFTER AMONG
OTHER THINGS FAILING QUICKLY TO MATCH A NEW FEATURE OFFERED BY COMPAQ IN A
FALLING OUT THAT MR QURESHEY LIKENS TO A DIVORCE MESSRS WONG AND YUEN
DEPARTED THE COMPANY LEAVING MR QURESHEY TO DIRECT AST AHEAD OF SMALL
RIVALS

AN ENGINEER BY TRAINING MR QURESHEY MOVED TO DIFFERENTIATE AST BY
EMPHASIZING TECHNOLOGICAL ADVANCES IN ITS PRODUCTS THE COMPANY FOR
EXAMPLE JOINED COMPAQ IN BEATING APPLE AND IBM TO THE PUNCH BY COMING OUT
WITH A NOTEBOOK COMPUTER AST ALSO INTRODUCED A LINE OF PCS WITH REPLACEABLE
MICROPROCESSORS ALLOWING CUSTOMERS TO BEEF UP THEIR MACHINES WITHOUT HAVING
TO BUY ANOTHER

MR QURESHEY ALSO MADE SURE THAT AST FORMED CLOSE LINKS WITH BIG
DISTRIBUTORS LIKE TECH DATA AND MERISEL INC WHICH ARE INVALUABLE ALLIES
BECAUSE THEY OUTFIT LARGE CORPORATIONS WITH HUNDREDS OF COMPUTERS

TWO YEARS AGO HE DEMONSTRATED FORESIGHT BY EXPANDING HIS BUSINESSORIENTED
PRODUCT LINE TO INCLUDE THE THENUNTAPPED CONSUMER MARKET BY LAUNCHING ITS
ADVANTAGE LINE OF CONSUMER PCS INTO RETAIL CHAINS LIKE CIRCUIT CITY AND
COMPUTER CITY AST WAS READY WHEN CONSUMER PC SALES MUSHROOMED LAST YEAR
AMID FALLING PC PRICES AND THE ADVENT OF MULTIMEDIA FUNCTIONS FOR
FULLMOTION VIDEO AND SOUND IN THE SECOND QUARTER AST SAYS ITS CONSUMER
SALES ACCOUNTED FOR 38 OF TOTAL 451 MILLION DOMESTIC SALES COMPARED WITH
LESS THAN 20 AT THE SAME TIME A YEAR AGO

AST'S INTERNATIONAL BUSINESS IS ALSO PERFORMING NICELY AFTER A SLOW START
IN THE COMPETITIVE EUROPEAN MARKET TOTAL INTERNATIONAL SALES INCREASED 56
TO 226 MILLION IN THE SECONDQUARTER WITH EUROPEAN REVENUE UP 113 DURING
THE QUARTER ALTHOUGH THE EUROPEAN ECONOMY REMAINS SLUGGISH AST SAYS IT HAS
EXPANDED ITS CUSTOMER BASE THROUGHOUT THE CONTINENT

IN ASIA THE COMPANY OPENED A NEW SUBSIDIARY IN MALAYSIA AND SIGNED AN
AGREEMENT IN JAPAN WITH MITSUI BUSSAN DIGITAL TO SUPPLY PCS TO BUSINESS AND
HOME USERS AST ALSO DOMINATES SALES IN CHINA WHERE IT BROKE NEW GROUND BY
BECOMING ONE OF THE FIRST MAJOR PC COMPANIES TO EXPAND THERE THE CHINESE
MARKET IN 10 YEARS COULD BE THE SIZE OF EUROPE SAYS MICHAEL PICKETT
CHAIRMAN AND CHIEF EXECUTIVE OF MERISEL

HOWEVER AST ISN'T IMMUNE FROM A RENEWED PC PRICING WAR WHICH WOULD DRAG
PROFIT MARGINS DOWN FOR ALL THE COMPANIES AST FACES RENEWED EFFORTS BY IBM
DIGITAL EQUIPMENT CORP AND HEWLETTPACKARD CO TO WIN MARKET SHARE IN
INTELBASED PCS AND IT FACES A LINE OF PCS FROM APPLE AND IBM THAT USE A
NEW CHIP CALLED THE POWERPC

BUT MR QURESHEY SAYS HIS COMPANY'S PC VOLUME IS INCREASING SO MUCH THAT
MARGINS SHOULDN'T BE TREMENDOUSLY AFFECTED ASIDE FROM THE CONCERN ABOUT
MARGINS THERE ARE VERY FEW ISSUES LEFT FOR AST TO ADDRESS ANALYST MR
ESKENAZI SAYS 9401210149 940121 INTERNATIONAL GREAT EAGLE TO PURCHASE
HOTEL

HONG KONG GREAT EAGLE HOLDINGS LTD A HONG KONG PROPERTY DEVELOPER
AGREED TO BUY A 500ROOM HOTEL FOR 203 BILLION HONG KONG DOLLARS 2628
MILLION FROM AN UNIDENTIFIED SELLER

GREAT EAGLE WILL OPERATE THE HONG KONG RENAISSANCE HOTEL UPON COMPLETION OF
THE PURCHASE EXPECTED AUG 1 THE KOWLOON HOTEL OPENED IN 1988 AND HAD
PRETAX INCOME OF HK65 MILLION IN THE EIGHT MONTHS ENDED IN NOVEMBER GREAT
EAGLE SAID

ACCORDING TO DATA SUPPLIED BY THE SELLER GREAT EAGLE SAID THE HOTEL
GENERATED NET INCOME OF HK72 MILLION AND HK78 MILLION IN THE YEARS ENDED
MARCH 31 1992 AND 1993 RESPECTIVELY GREAT EAGLE NOTED THAT IT PAID
HK350 MILLION UPON SIGNING THE PURCHASE AGREEMENT AND WILL PAY A FURTHER
HK250 MILLION APRIL 7 WITH THE BALANCE DUE IN AUGUST 9401210148 940121
ONTARIO TO ISSUE DEBT SECURITIES

TORONTO THE PROVINCE OF ONTARIO PLANS TO ISSUE MORE THAN ONE BILLION
CANADIAN DOLLARS US7633 MILLION OF DEBT SECURITIES OVER THE NEXT FEW
WEEKS

THE FINANCINGS WILL INCLUDE THE PROVINCE'S FIRST GLOBAL US DOLLAR FLOATING
RATE NOTE

THE ONTARIO GOVERNMENT SAID IT WILL DO THE FINANCINGS WHEN MARKET CONDITIONS
ALLOW BOND TRADERS EXPECT THE ISSUES NEXT WEEK

GOVERNMENT OFFICIALS SAID PROCEEDS OF THE ISSUES WILL COVER THE PROVINCE'S
C600 MILLION BORROWING REQUIREMENT FOR THE FISCAL YEAR ENDING MARCH 1994
AND PREFUND BORROWING NEEDS FOR THE NEXT FISCAL YEAR THEY DIDN'T PROVIDE
DETAILS OF THE SIZE OF THE OFFERINGS BUT PAST GLOBAL ISSUES BY THE PROVINCE
HAVE RAISED MORE THAN C1 BILLION EACH

THE US GLOBAL NOTE ISSUE WILL BE JOINTLY LEADMANAGED BY LEHMAN BROS AND
MERRILL LYNCH & CO OF NEW YORK WHILE A CANADIANDOLLAR GLOBAL ISSUE WILL
BE UNDERWRITTEN BY A GROUP HEADED BY GOLDMAN SACHS & CO 9401210147
940121 MARKETING & MEDIA NBA'S OPPOSITION TO SPORTS GAMBLING IMPERILS
TORONTO'S HOPES FOR FRANCHISE  BY MARK HEINZL STAFF REPORTER OF
THE WALL STREET JOURNAL

TORONTO SPORTS FANS IN TORONTO MAY LOSE A PROMISED NATIONAL BASKETBALL
ASSOCIATION TEAM BECAUSE THE PROVINCIAL GOVERNMENT THINKS IT CAN MAKE MORE
MONEY FROM GAMBLING THAN FROM HAVING A HOME TEAM

IN NOVEMBER THE NBA AWARDED AN EXPANSION FRANCHISE TO A TORONTO GROUP ON
THE CONDITION THAT THE ONTARIO GOVERNMENT DROP BASKETBALL FROM ITS
PROLINE SPORTSBETTING LOTTERY ONTARIO REFUSES TO GIVE UP THE GAMBLING
REVENUE AND CONFIDENTIAL TALKS BETWEEN THE LEAGUE AND PROVINCE COLLAPSED
LAST WEEK

IF THE TWO SIDES CAN'T REACH A COMPROMISE THE LEAGUE WILL LOSE A 125
MILLION FRANCHISE FEE AND A FOOTING IN ONE OF NORTH AMERICA'S MOST LUCRATIVE
SPORTS MARKETS TORONTO WILL LOSE A PROPOSED 125 MILLION CANADIAN DOLLAR
US95 MILLION STADIUM AND THE BUSINESS THAT A BIGLEAGUE BASKETBALL TEAM
WOULD DRAW

SO NEITHER SIDE WANTS TO KILL THE FRANCHISE AGREEMENT BUT DEFENDING
PROLINE IS A MONSTER MONEY POSITION FOR US SAYS LARRY BERTUZZI
ONTARIO'S NEGOTIATOR HE ADDS THAT THE PROVINCE NETTED ABOUT C50 MILLION
FROM THE SPORTS LOTTERY IN THE YEAR ENDED OCT

THE SQUABBLE SHOWS HOW IMPORTANT GAMBLING HAS BECOME AS A REVENUE SOURCE FOR
GOVERNMENTS TEN YEARS AGO A PROVINCE MIGHT HAVE OFFERED TAX OR LAND BREAKS
TO ENTICE A PROFESSIONAL TEAM SO THAT THE CITY COULD ENJOY THE SPINOFF
BENEFITS SAYS BRIAN NEYSMITH PRESIDENT OF CANADIAN BOND RATING SERVICE IN
MONTREAL BUT NOW WITH GAMBLING THE REVENUE GOES RIGHT INTO THEIR POCKET
AND THE GOVERNMENT CAN'T AFFORD TO GIVE IT UP HE SAYS

BASKETBALL REPRESENTS ONLY ABOUT 10 OF PROLINE BETS BUT MR BERTUZZI SAYS
THE NBA DISPUTE IS PIVOTAL BECAUSE OTHER PROFESSIONAL SPORTS HAVE TOLD THE
PROVINCE THEY WILL WANT OUT OF PROLINE IF THE NBA GETS ITS WAY

THE NBA HAS FOUGHT AGAINST BASKETBALL BETTING IN THE US WHERE A RECENT
FEDERAL LAW BANNED SPORTSGAMBLING IN MOST STATES IT DOESN'T INTEND TO GIVE
UP THE FIGHT IN CANADA DEPUTY COMMISSIONER RUSS GRANIK SAYS THE LEAGUE
WANTS FANS ROOTING FOR THE HOME TEAM TO WIN NOT TO BEAT THE POINT SPREAD

MR GRANIK SAYS THAT IF THE DISPUTE ISN'T RESOLVED BY MIDFEBRUARY IT WILL
BE TOO LATE TO INCLUDE A TORONTO TEAM IN THE 1995 SEASON AND UNLIKELY THAT
IT WILL BE SETTLED AS LONG AS THE CURRENT GOVERNMENT IS IN POWER UNLESS
THERE'S NO GAMBLING ON NBA GAMES THERE WON'T BE A TEAM IN TORONTO HE
INSISTS

CHRIS ANTARAS A TORONTO WAITER WHO BETS MORE THAN C50 PER WEEK ON
PROLINE SAYS THE NBA'S POSITION IS RIDICULOUS PEOPLE WILL FIND A WAY TO
GAMBLE ON SPORTS ANYWAY HE CONTENDS ADDING THAT IF ANYTHING PROLINE
RAISES THE CITY'S INTEREST IN BASKETBALL

I'D PREFER BASKETBALL OVER SPORTS BETTING SAYS TRACY BARKER A TORONTO
OFFICE SUPERVISOR WHO WAGERS ABOUT C10 A WEEK HE EXPECTS THAT BOB RAE
ONTARIO'S PREMIER EVENTUALLY WILL CAVE IN TO THE NBA'S DEMAND BECAUSE MR
RAE ALREADY LOW IN VOTER SUPPORT CAN'T AFFORD TO TURN HIS BACK ON JOBS AND
REVENUE THAT BASKETBALL WOULD BRING TO THE CITY

CAUGHT IN THE MIDDLE OF THE HOOPLA IS JOHN BITOVE WHO HEADS THE GROUP THAT
WAS CONDITIONALLY AWARDED THE FRANCHISE MR BITOVE SAYS HE'S STILL
OPTIMISTIC THAT A SETTLEMENT WILL BE REACHED BECAUSE BOTH SIDES STAND TO
GAIN FROM PROFESSIONAL BASKETBALL IN TORONTO I THINK THE FANS OF TORONTO
HAVE WAITED TOO LONG FOR THIS 9401210146 940121 POLITICS & POLICY 
WITH NAFTA AND GATT BEHIND IT WHITE HOUSE FOCUSES ON BILATERAL TRADE
TALKS WITH JAPAN  BY ASRA Q NOMANI STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON THE MORNING BEFORE THE GAVEL CAME DOWN MARKING THE END OF
WORLD TRADE TALKS LAST MONTH US TRADE REPRESENTATIVE MICKEY KANTOR
ASSEMBLED WOODPRODUCT AND PAPERPRODUCT LOBBYISTS IN GENEVA AND PRESENTED
THEM WITH SOME DISAPPOINTING NEWS

ALTHOUGH HE HAD WON A PHASEOUT OF PAPER TARIFFS MR KANTOR TOLD THEM HE
COULDN'T GET JAPAN TO LOWER WOODPRODUCT TARIFFS YET HIS MESSAGE THE
US EFFORT WASN'T OVER

THIS MONTH SENIOR US TRADE OFFICIALS REASSEMBLED MANY OF THOSE SAME
LOBBYISTS IN WASHINGTON THE NEWS THEY WERE PRESSING HARD FOR THE LOWER
TARIFFS IN BILATERAL TALKS WITH THE JAPANESE EARLY NEXT WEEK US
OFFICIALS PLAN TO PUSH THE ISSUE FURTHER WITH JAPAN IN SOCALLED QUAD
MEETINGS INCLUDING THE US JAPAN CANADA AND EUROPE

IT IS A PATTERN THAT MAY REPEAT ITSELF WITH A NUMBER OF INDUSTRIES WITH THE
NORTH AMERICAN FREE TRADE AGREEMENT BATTLE FINALLY WON AND THE GENERAL
AGREEMENT ON TARIFFS AND TRADE TALKS CONCLUDED JAPAN HAS TAKEN THE
SPOTLIGHT AS THE CENTRAL TRADE ISSUE FACING THE CLINTON ADMINISTRATION AND
MANY OF THE INDUSTRIES THAT WERE DISAPPOINTED AT THE RESULTS OF GATT OR
THAT WANTED MORE THAN THEY GOT OUT OF IT ARE NOW PINNING THEIR HOPES ON THE
RESULTS OF TALKS WITH THE JAPANESE

ESTABLISHING A FRAMEWORK FOR THE USJAPAN TRADE RELATIONSHIP WAS
SUPPOSED TO BE ONE OF THE ADMINISTRATION'S TOP TRADE PRIORITIES WHEN IT TOOK
OFFICE A YEAR AGO BUT IT TOOK A BACK SEAT TO OTHER TRADE ISSUES NOW
THOUGH THE ARROW IS POINTING DIRECTLY AT TOKYO JEFFREY GARTEN COMMERCE
UNDERSECRETARY FOR INTERNATIONAL TRADE SAYS AS HE SWINGS HIS HAND
CLOCKWISE

THE GATT TALKS TOOK CARE OF SOME OF THE COMPLAINTS US INTERESTS HAVE ABOUT
DOING BUSINESS IN JAPAN MOST NOTABLY JAPAN AGREED TO LIFT ITS BAN ON
FOREIGN RICE IMPORTS BUT THE TALKS DIDN'T RESOLVE EVERYTHING AND A NUMBER
OF ISSUES CONTINUE TO VEX RELATIONS BETWEEN THE TWO COUNTRIES INCLUDING
COMPLAINTS FROM THE INSURANCE AUTOMOTIVE AUTO PARTS COMPUTER SOFTWARE
SEMICONDUCTOR AND LEATHER AND WOOD PRODUCTS INDUSTRIES

THE CORPORATE INTERESTS INVOLVED ARE SOME OF THE BIGGEST NAMES IN US
BUSINESS INCLUDING THE BIG THREE AUTO MAKERS CHRYSLER CORP GENERAL
MOTORS CORP AND FORD MOTOR CO AS WELL AS SUCH HIGHTECH STALWARTS AS
MICROSOFT CORP INTEL CORP MOTOROLA CORP AND TEXAS INSTRUMENTS INC

THE US HOPES TO WRAP UP SOME OF THE KNOTTIEST OF THE ISSUES BETWEEN THE
TWO COUNTRIES INCLUDING THOSE INVOLVING AUTOS AUTO PARTS INSURANCE AND
GOVERNMENT PROCUREMENT BEFORE PRESIDENT CLINTON'S SCHEDULED FEB 11
MEETING HERE WITH JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA ON MONDAY A
NUMBER OF SENIOR TRADE OFFICIALS FROM BOTH SIDES GATHER IN WASHINGTON TO
THRASH OUT DIFFERENCES

IN AN INTERVIEW MR KANTOR SAID THE FRAMEWORK TALKS ARE A MAJOR PRIORITY
FOR THE CLINTON ADMINISTRATION WE BELIEVE JAPAN HAS THE SAME
RESPONSIBILITY AS THE EUROPEAN COMMUNITY AND CANADA TO OPEN THEIR MARKETS
AND LEAD GLOBAL GROWTH THAT'S IN JAPAN'S INTEREST MR KANTOR INDICATED
THAT US CABINET OFFICIALS WOULD SOON GET INVOLVED IN THE NEGOTIATIONS
WHICH SO FAR HAVE BEEN CARRIED ON AT THE DEPUTYMINISTERIAL LEVEL THERE
HAS TO BE FULL ENGAGEMENT AT EVERY POLITICAL LEVEL HE SAID THE US
OFFICIALS LIKELY TO PARTICIPATE INCLUDE TREASURY SECRETARY LLOYD BENTSEN
NATIONAL ECONOMIC COUNCIL CHIEF ROBERT RUBIN COMMERCE SECRETARY RONALD
BROWN AND MR KANTOR HIMSELF

US OFFICIALS BELIEVE THE SUMMIT COULD BECOME AN IMPORTANT SYMBOL FOR THE
EASING OF USJAPAN TRADE TENSIONS THERE IS A DESIRE TO MAKE THIS SUMMIT
A SUCCESS SAYS WILLIAM WATTS PRESIDENT OF POTOMAC ASSOCIATES A POLICY
RESEARCH COMPANY IT'S VIEWED AS A MOMENT OF GREAT OPPORTUNITY BUT THERE
IS JUST AS GOOD A CHANCE THE SUMMIT COULD WIND UP A DUD BECAUSE THE
POLITICAL AND ECONOMIC TURMOIL WITHIN JAPAN WON'T ALLOW THE HOSOKAWA
GOVERNMENT THE FLEXIBILITY IT NEEDS TO RESOLVE DISPUTES

ONE KEY ISSUE INVOLVES COMPUTER SOFTWARE THE BIG US SOFTWARE COMPANIES
WALKED AWAY FROM THE GATT TALKS IN GENEVA SATISFIED WITH INTELLECTUAL
PROPERTY PROVISIONS IT WAS THE FIRST TIME A GATT AGREEMENT HAD INCLUDED
SUCH RULES AND SOFTWARE WAS ACCORDED AS HIGH A LEVEL OF PROTECTION AS
LITERARY WORK BUT EVEN BEFORE THE GATT TALKS HAD CONCLUDED INDUSTRY
OFFICIALS WERE DISPATCHED TO TOKYO TO TESTIFY AGAINST PROPOSED CHANGES THAT
THEY ARGUED WOULD LIMIT COPYRIGHT PROTECTION

JAPAN IS CONSIDERING ALLOWING INCREASED REVERSE ENGINEERING OF SOFTWARE A
PROCESS THAT ALLOWS A COMPANY TO TAKE A SOFTWARE PROGRAM BREAK IT DOWN INTO
THE ONES AND ZEROS OF COMPUTER LANGUAGE AND THEN ESSENTIALLY DUPLICATE IT
THAT HAS SUCH US COMPANIES AS MICROSOFT APPLE COMPUTER INC NOVELL INC
AND LOTUS DEVELOPMENT CORP UP IN ARMS

WE THINK THAT GATT WAS GOOD FOR THE US SOFTWARE INDUSTRY SAYS KIMBERLY
ELLWANGER A TRADE SPECIALIST AND DIRECTOR OF CORPORATE AFFAIRS AT
MICROSOFT WHICH HAS SAID IT MIGHT CURTAIL SHIPMENTS OF SOFTWARE IN JAPAN IF
REVERSE ENGINEERING BECAME WIDESPREAD JAPAN'S PROPOSAL WOULD BE A STEP
BACK FOR US SOFTWARE MAKERS MS ELLWANGER SAYS ROBERT HOLLEYMAN
PRESIDENT OF THE BUSINESS SOFTWARE ALLIANCE AN INDUSTRY LOBBYING GROUP
SAYS HIS GROUP IS ARGUING THAT THE PROPOSAL IS FUNDAMENTALLY INCONSISTENT
WITH THE USJAPAN FRAMEWORK TALKS

MEANWHILE US SEMICONDUCTOR COMPANIES SAY THAT WHILE THE WORLD TRADE
AGREEMENT LOWERED VARIOUS TARIFF BARRIERS IT DIDN'T DEAL WITH MOST
NONTARIFF BARRIERS AND THE US CLAIMS SUCH OBSTACLES BLOCK US
SEMICONDUCTOR SALES IN JAPAN WHICH LIFTED TARIFFS ON FOREIGN SEMICONDUCTOR
IMPORTS IN THE 1980S WE STILL FACE MARKET ACCESS PROBLEMS VISAVIS
JAPAN SAYS JOHN BOIDOCK VICE PRESIDENT AND DIRECTOR OF GOVERNMENT
RELATIONS AT DALLASBASED TEXAS INSTRUMENTS THESE ISSUES WEREN'T
NEGOTIATED OR DISCUSSED OR DEBATED IN GENEVA

AFTER THE FOREIGN SHARE OF THE JAPANESE MARKET FELL BELOW 20 IN RECENTLY
RELEASED THIRDQUARTER 1993 FIGURES US TRADE REPRESENTATIVE KANTOR CALLED
FOR EMERGENCY TALKS WHICH BEGAN YESTERDAY WE'RE HOPEFUL THAT WE'LL GET
SOMETHING OUT OF IT SAYS MR BOIDOCK

OTHER INDUSTRIES HAVE CASES TO PRESS TOO EXECUTIVES FROM FINANCIAL SERVICE
INDUSTRIES INCLUDING SECURITIES INSURANCE AND DIVERSIFIED FINANCIAL FIRMS
LEFT THE WORLD TRADE TALKS UNHAPPY OVER NOT WINNING INCREASED ACCESS TO
JAPAN AND THAT ISSUE HANGS OVER THE TWO SIDES OPENING JAPAN TO US
INSURANCE COMPANIES IS THE MOST PRESSING BECAUSE THAT SECTOR IS SUPPOSED TO
BE RESOLVED BY THE TIME OF THE SUMMIT MEETING AMONG THE COMPANIES VYING FOR
MORE ACCESS TO THE JAPANESE MARKET ARE AMERICAN INTERNATIONAL GROUP INC
CIGNA CORP AND CHUBB CORP AS WELL AS BROKERS SUCH AS MARSH & MCCLENNAN
COS AND ALEXANDER & ALEXANDER SERVICES INC THEY WANT JAPAN TO BROADEN
EFFORTS UNDER WAY TO DEREGULATE ITS INSURANCE BUSINESS

AUTO AND AUTOPARTS COMPANIES ARE PRESSING TOO THE PARTS COMPANIES WANT
JAPAN TO AGREE TO INCREASE ITS PURCHASES OF USMADE AUTO PARTS BY ABOUT
20 A YEAR AN ANNUAL INCREASE JAPAN HAS BEEN REALIZING OVER RECENT YEARS
THE BIG THREE AUTO MAKERS MEANWHILE WANT JAPAN TO OPEN ITS DISTRIBUTION
SYSTEM SO THEY CAN MAKE MORE VEHICLES AVAILABLE TO THE JAPANESE ANDREW
CARD FORMER TRANSPORTATION SECRETARY DURING THE BUSH ADMINISTRATION AND
CHIEF EXECUTIVE OF THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION IS
TAKING HIS SPIEL TO TOKYO LATER THIS MONTH VIA TALKSHOW APPEARANCES
LECTURES AND EVEN A TOWNHALL MEETING

STILL ANOTHER INDUSTRY SEEKING TO MAKE UP FOR GATT IS LEATHERPRODUCT
MANUFACTURERS WHO FAILED TO WIN AN INCREASE IN THE AMOUNT OF GOODS THEY CAN
SHIP INTO JAPAN OR THE REDUCTION OF TARIFFS

JAPANESE OFFICIALS HAVE ARGUED THAT THE TARIFFS AND QUOTAS ARE IN PLACE TO
PROTECT A CLASS OF JAPANESE WHO ARE REGARDED IN MUCH THE SAME WAY AS THE
UNTOUCHABLE CASTE IN INDIA AND WHO TRADITIONALLY HOLD JOBS AS TANNERS
BUT GRANT HANSON ASSISTANT GENERAL COUNSEL AND DIRECTOR OF GOVERNMENT
AFFAIRS AT NIKE INC WHICH HAS BEEN PUSHING FOR MORE ACCESS TO THE JAPANESE
MARKET FOR ITS COLE HAAN SHOE SUBSIDIARY SAYS THAT SINCE THE CONCESSIONS
WEREN'T MADE IN GATT WE'RE GOING TO CONTINUE TO PURSUE THEM BILATERALLY
9401210145 940121 BUSINESS BRIEF MONSANTO'S 4THQUARTER NET DECLINED 
BUT PROFIT BEFORE SPECIAL ITEMS ROSE

ST LOUIS MO MONSANTO CO SAID NET INCOME FELL FOR THE FOURTH QUARTER
BUT EARNINGS BEFORE SPECIAL ITEMS ROSE SHARPLY REFLECTING THE US ECONOMIC
RECOVERY AND THE COMPANY'S ONGOING COSTCUTTING EFFORTS

RESULTS WERE LACED WITH SPECIAL ITEMS AS WERE THOSE OF THE YEARAGO
QUARTER BUT EXCLUDING SPECIAL CHARGES AND GAINS THE CHEMICAL DRUG AND
FOODPRODUCT CONCERN'S EARNINGS WERE 46 MILLION COMPARED WITH THE
YEAREARLIER PERIOD'S 12 MILLION

THE COMPANY REPORTED NET OF 58 MILLION OR 49 CENTS A SHARE WHICH INCLUDED
A 7 MILLION AGGREGATE CHARGE AND A 19 MILLION GAIN LINKED TO LASTIN
FIRSTOUT INVENTORY ACCOUNTING IN THE YEARAGO PERIOD WHICH WAS BOLSTERED
BY A 554 MILLION GAIN FROM THE SALE OF A UNIT AND HIT BY A 425 MILLION
CHARGE LINKED TO COSTCUTTING EFFORTS MONSANTO'S NET WAS 141 MILLION OR
114 A SHARE

SALES WERE 188 BILLION UP FRACTIONALLY FROM THE YEARAGO PERIOD'S 187
BILLION

OPERATING EARNINGS AT MONSANTO'S CHEMICAL GROUP EXCLUDING SPECIAL ITEMS
MORE THAN DOUBLED TO 55 MILLION FROM 26 MILLION SALES INCREASED JUST
18 TO 936 MILLION THE COMPANY CITED LOWER PRICES FOR PETROCHEMICALS IT
USES IN ITS PRODUCTION AS WELL AS ITS INTERNAL COSTCUTTING EFFORTS

THE CHEMICAL OPERATION IS GETTING A BOOST FROM THE US ECONOMY'S RECOVERY
PARTICULARLY IN SALES OF PLASTICS FOR AUTO PRODUCERS THE US HOUSING SURGE
IS ALSO STRENGTHENING DEMAND FOR MONSANTO'S CARPET FIBERS AND OTHER
PRODUCTS BUT STAGNANT WESTERN EUROPEAN AND JAPANESE MARKETS CONTINUE TO PUT
PRESSURE ON RESULTS

MONSANTO'S SEARLE PHARMACEUTICAL UNIT RECORDED OPERATING INCOME OF 25
MILLION COMPARED WITH A YEARAGO OPERATING LOSS OF 3 MILLION SALES FROM
NEW SEARLE PRODUCTS THE COMPANY SAID MORE THAN OFFSET THE DECLINES IN
SALES OF ITS FLAGSHIP CALAN HEART DRUG WHICH SINCE MID1992 HAS BEEN
SUBJECT TO COMPETITION FROM GENERIC PRODUCTS

MONSANTO SHARES WHICH HAVE STRENGTHENED SIGNIFICANTLY IN RECENT MONTHS TO
HOVER NEAR THE 52WEEK HIGH SLUMPED 1875 TO 78125 IN COMPOSITE TRADING
ON THE NEW YORK STOCK EXCHANGE 9401210144 940121 INTERNATIONAL BRITISH
AEROSPACE HARRIER ORDER

LONDON BRITISH AEROSPACE PLC SAID IT WON A DEFENSEDEPARTMENT ORDER TO
SUPPLY FIGHTER JETS TO BRITAIN'S ROYAL NAVY

THE ORDER IS TO SUPPLY 18 NEW SEA HARRIER FRS2 AIRDEFENSE FIGHTERS FOR THE
NAVY FOR DELIVERY FROM 1995

BRITISH AEROSPACE DIDN'T PROVIDE FINANCIAL DETAILS OF THE CONTRACT HOWEVER
A SPOKESMAN FOR THE DEPARTMENT OF DEFENSE SAID THE CONTRACT WOULD TOTAL 200
MILLION 2985 MILLION

THE SPOKESMAN ALSO SAID NEGOTIATIONS ARE UNDER WAY ON A CONTRACT TO UPDATE
OTHER NAVY JETS THOSE JETS MODEL FRS1 ARE AN EARLIER VERSION OF THE NEW
SEA HARRIERS 9401210143 940121 TECHNOLOGY & MEDICINE RESULTS POSTED 
BY 2 DRUG FIRMS CALM INVESTORS  BY ELYSE TANOUYE STAFF REPORTER
OF THE WALL STREET JOURNAL

TWO BIG DRUG COMPANIES REPORTED FOURTHQUARTER EARNINGS THAT LARGELY MET
EXPECTATIONS REASSURING INVESTORS THAT PFIZER INC'S DISAPPOINTING RESULTS
ON WEDNESDAY DIDN'T SIGNAL AN INDUSTRY TREND

BRISTOLMYERS SQUIBB CO REPORTED A 56 DROP IN EARNINGS BECAUSE OF A
SPECIAL CHARGE TO SETTLE BREASTIMPLANT CLAIMS BUT PROFIT EXCLUDING THE
CHARGE WAS WITHIN FORECASTS AMERICAN HOME PRODUCTS CORP REPORTED SALES AND
EARNINGS INCREASES OF ALMOST 6 ON TARGET WITH ANALYSTS' ESTIMATES

THE COMPANIES' SHARE PRICES REMAINED FIRM AFTER THE EARNINGS ANNOUNCEMENTS
BRISTOLMYERS SHARES ENDED UP AT 5875 UNCHANGED AND AMERICAN HOME
PRODUCTS SHARES CLOSED AT 6425 UNCHANGED IN NEW YORK STOCK EXCHANGE
COMPOSITE TRADING YESTERDAY MEANWHILE PFIZER SHARES SLID 25 CENTS TO
62625 AFTER FALLING 5 WEDNESDAY IN BIG BOARD TRADING

THE IMPORTANCE OF THE EARNINGS RELEASES YESTERDAY WAS THAT THEY CALMED THE
FEARS EVEN THOUGH THEY WEREN'T STELLAR RESULTS SAID MARIOLA B HAGGAR AN
ANALYST AT SALOMON BROTHERS INC AFTER PFIZER ANNOUNCED ITS EARNINGS SHE
SAID INVESTORS WERE CALLING FEARFUL THAT IF THE STRONGEST COMPANY IN THE
INDUSTRY IS SHOWING A SHORTFALL IT MUST MEAN THE WEAKER COMPANIES ARE GOING
TO SHOW A DISASTER AND THAT DIDN'T HAPPEN

BRISTOLMYERS'S EARNINGS FELL TO 2558 MILLION OR 50 CENTS A SHARE FROM
583 MILLION OR 113 A SHARE A YEAR EARLIER SALES ROSE 6 TO 299
BILLION FROM 282 BILLION

THE MOST RECENT QUARTER INCLUDED A 500 MILLION PRETAX SPECIAL CHARGE TO
SETTLE PENDING AND FUTURE BREASTIMPLANT PRODUCT LIABILITY CLAIMS
BRISTOLMYERS'S MEDICAL ENGINEERING CORP UNIT SOLD SILICON BREAST IMPLANTS
UNTIL 1991 WHEN IT WITHDREW THE PRODUCT FROM THE MARKET AFTER CONTROVERSY
ERUPTED OVER THE SAFETY OF BREAST IMPLANTS THE COMPANY SAID THE CHARGE
INCLUDES 15 BILLION FOR POTENTIAL LIABILITIES AND EXPENSES OFFSET BY 1
BILLION IN EXPECTED INSURANCE PROCEEDS

FOR THE YEAR BRISTOLMYERS EARNED 196 BILLION OR 380 A SHARE FLAT
WITH THE PREVIOUS YEAR'S 196 BILLION OR 379 A SHARE THE 1992 RESULTS
INCLUDED GAINS ON THE DISPOSAL OF A BUSINESS AND A CHARGE FOR ACCOUNTING
CHANGES SALES ROSE 23 TO 1141 BILLION FROM 1116 BILLION

EXCLUDING THE SPECIAL CHARGE BRISTOLMYERS'S PERSHARE EARNINGS FROM
CONTINUING OPERATIONS ROSE 8 TO 110 SLIGHTLY BELOW THE CONSENSUS
FORECAST BUT WITHIN THE RANGE OF EXPECTATIONS ROBERT HODGSON AN ANALYST AT
COWEN & CO SAID THE COMPANY HAD AN EASIER COMPARISON THAN USUAL WITH THE
YEAREARLIER RESULTS WHICH HAD BEEN DEPRESSED BY LARGE PURCHASES BY
WHOLESALERS IN THE THIRDQUARTER THAT PULLED SALES INTO THAT QUARTER AND
OUT OF FOURTHQUARTER

AMERICAN HOME'S NET ROSE 59 TO 3827 MILLION OR 123 A SHARE FROM
3616 MILLION OR 116 A SHARE SALES ROSE 57 TO 212 BILLION FROM 2
BILLION

FOR THE YEAR THE COMPANY POSTED EARNINGS OF 147 BILLION OR 473 A
SHARE ROUGHLY FLAT WITH 146 BILLION OR 465 A SHARE A YEAR EARLIER
SALES ROSE 55 TO 83 BILLION FROM 787 BILLION THE 1992 RESULTS
INCLUDED A 220 MILLION CHARGE RELATED TO THE COMPANY'S PURCHASE OF GENETICS
INSTITUTE INC

DRIVING MUCH OF THE GROWTH IN THE QUARTER WAS THE STRENGTH OF CONSUMER
HEALTHCARE PRODUCTS WHERE SALES INCREASED 13 A STRONG FLU SEASON GAVE A
BOOST TO COUGHANDCOLDPRODUCT SALES ANALYSTS SAID 9401210142 940121
CLINTON'S BUDGET WOULD SHIFT FUNDS TO THE HOMELESS  BY PAULETTE
THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON PRESIDENT CLINTON WILL PROPOSE IN HIS FISCAL 1995 BUDGET
SHIFTING RESOURCES IN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TOWARD
CARING FOR THE HOMELESS AND AWAY FROM PUBLICHOUSING PROGRAMS

THE IDEA APPARENTLY IS TO TARGET MORE MONEY TO THE NEEDIEST MOREOVER
ADMINISTRATION OFFICIALS BELIEVE THAT HOMELESS PEOPLE NEED MORE COUNSELING
AND SOCIAL SERVICES IN ADDITION TO EMERGENCY SHELTER

ALTHOUGH THE DETAILS WON'T BE UNVEILED UNTIL FEB 7 PUBLICHOUSING
ADVOCATES ALREADY ARE PROTESTING EXPECTED CUTS IN THEIR PROGRAMS SOME 1200
HOUSING ORGANIZATIONS SIGNED A LETTER TO THE WHITE HOUSE LAST WEEK
ASSERTING THAT HOUSING BORE THE BRUNT OF BUDGET CUTS THROUGH THE 1980S AND
SHOULDN'T BE HIT AGAIN

ADMINISTRATION OFFICIALS SAY MR CLINTON'S 25 BILLION HUD BUDGET WILL SEEK
TO INCREASE ANNUAL FEDERAL SPENDING ON HOMELESSNESS TO MORE THAN 12
BILLION FROM ABOUT 800 MILLION NOW BOTH MR CLINTON AND HUD SECRETARY
HENRY CISNEROS HAVE EMPHASIZED THEIR COMMITMENT TO REDUCING HOMELESSNESS AS
THE TOP GOAL AT HUD

OFFICIALS ACKNOWLEDGED HUD'S PRIORITIES WILL SHIFT BUT THEY WOULDN'T
CONFIRM HOW SEVERELY PUBLICHOUSING FUNDS WOULD BE TRIMMED PUBLICHOUSING
OFFICIALS AND LOBBYISTS SAY THEY EXPECT STEEP CUTS FROM THE CURRENT 46
BILLION BUDGET FOR BUILDING AND MODERNIZING PUBLIC HOUSING

AT LEAST ONE LOBBYIST PREDICTED THAT CONGRESS WOULD REINSTATE ANY SPENDING
THE ADMINISTRATION PROPOSES TO CUT FROM PUBLIC HOUSING WE WILL TURN AS WE
HAVE FOR 14 YEARS TO MEMBERS OF CONGRESS WHO HAVE DONE THEIR BEST TO FUND
PUBLIC HOUSING ADEQUATELY SAID GORDON CAVANAUGH WHO REPRESENTS THE
COUNCIL FOR LARGE PUBLIC HOUSING AUTHORITIES

THE SQUEEZE AT HUD REFLECTS OVERALL BUDGET LIMITS RESULTING FROM LAST
SUMMER'S AGREEMENT TO CAP DOMESTIC SPENDING FOR EVERY SPENDING INCREASE
PRESIDENT CLINTON PROPOSES A SIMILAR CUT MUST BE FOUND

BOTH MR CISNEROS AND PRESIDENT CLINTON HAVE PUBLICLY TOUTED THEIR
COMMITMENT TO REDUCE HOMELESSNESS IN DECEMBER STANDING ALONGSIDE HOMELESS
ADVOCATES AT THE WHITE HOUSE THE TWO MEN ANNOUNCED 400 MILLION IN GRANTS
FOR HOMELESS PROGRAMS USING UNSPENT FUNDS FROM PREVIOUS YEARS HUD ALSO
LAUNCHED A PROGRAM LAST YEAR PROVIDING 20 MILLION IN COUNSELING SHELTER
AND OTHER AID FOR THE HOMELESS IN WASHINGTON MR CISNEROS SAID THE
GOVERNMENT'S EFFORTS IN THE DISTRICT WOULD BE A MODEL FOR OTHER CITIES

THOMAS L KENYON PRESIDENT OF THE NATIONAL ALLIANCE TO END HOMELESSNESS
APPLAUDED THE SHIFT OF FUNDS TO HELP THE HOMELESS IT FEELS SO GOOD FOR
SOMEONE TO CALL THIS A PRIORITY HE SAID 9401210141 940121 THE AMERICAS
 NEW ZAPATISTAS SULLY MEMORY OF THEIR NAMESAKE  BY ENRIQUE KRAUZE

MEXICO CITY AS THE MEXICAN ARMY BRACES ITSELF FOR NEW ATTACKS BY THE
SELFSTYLED ZAPATISTA NATIONAL LIBERATION ARMY EZLN IN THE SOUTHERN STATE
OF CHIAPAS MANY MEXICANS AND MOST OUTSIDE OBSERVERS CONTINUE TO HARBOR
ILLUSIONS ABOUT THE NATURE OF THE REVOLT AND THE REGION ITSELF CHIAPAS IS
THE PERU OF MEXICO IT AND THE NEIGHBORING STATE OF YUCATAN ESSENTIALLY
ENCOMPASS THE HISTORICAL ZONE OF THE ANCIENT MAYAS UNLIKE THE REST OF
MEXICO THESE TWO STATES STOOD ALOOF FROM THE SUCCESSFUL PROCESS OF
BIOLOGICAL INTERMIXING KNOWN AS MESTIZAJE THAT HELPED TO ALLEVIATE AND
DISSOLVE ETHNIC TENSIONS THROUGHOUT THE CENTURIES OF COLONIAL RULE

A PECULIAR DESPOTISM ETHNIC IN ITS ORIGINS TYPIFIES THE AUTHORITIES'
TREATMENT OF THE PEOPLE AT EVERY LEVEL INCLUDING IN THE HOME IN THE PAST
IT WAS THE FEUDAL LANDOWNERS KNOWN AS ENCOMENDEROS MAYORS VILLAGE BOSSES
KNOWN AS CACIQUES GOVERNORS AND EVEN PRIESTS WHO DICTATED THEIR OWN TERMS
TO THE INDIGENOUS POPULATION TODAY THE CACIQUES GOVERNORS AND PRESIDENTS
OF TOWN COUNCILS STILL DICTATE TERMS BUT THEY ARE ALL INTEGRATED INTO THE
RULING INSTITUTIONAL REVOLUTIONARY PARTY PRI

BECAUSE OF THIS BACKGROUND AND THE REVOLUTIONARY CLOAK WORN BY THE
ZAPATISTA REBELS SOME ANALYSTS HAVE CLASSIFIED THE RECENT BATTLES IN
CHIAPAS AS A TYPICAL INDIGENOUS OR PEASANT REBELLION LIKE THOSE THAT
OCCURRED DURING THE THREE CENTURIES OF SPANISH RULE 15211821 OR TO
BRING IT CLOSER TO OUR DAYS AN AGRARIAN REVOLT LIKE THAT LED BY THE
REVOLUTIONARY ICON EMILIANO ZAPATA WHOSE NAME THE GUERRILLA ARMY HAS
ADOPTED THERE IS NO SHORTAGE OF VOICES BOTH AT HOME AND ABROAD SPREADING
THIS ROMANTIC IDEA

BUT THIS IS NOT A CLASSIC ZAPATISTA PEASANT UPRISING A FREEDOM STRUGGLE
OVER A CONCRETE AGRARIAN GRIEVANCE FOUGHT IN A SPECIFIC GEOGRAPHICAL REGION
AND SETTLED BY VIOLENCE NOR IS IT LIKE THE INDIGENOUS UPRISINGS OF THE
COLONIAL PERIOD WHICH WERE SPONTANEOUS AND REACTIVE THIS IS A PREMEDITATED
WAR IT HAS DURING ITS LENGTHY PLANNING ABSORBED THE GUERRILLA EXPERIENCE
OF THE 1960S IN MEXICO AND OF THE 1980S IN EL SALVADOR AND NICARAGUA

FROM EYEWITNESS DESCRIPTIONS IT'S CLEAR THAT THE REBEL LEADERS IN CHIAPAS
ARE NOT OF INDIGENOUS OR PEASANT STOCK AND THEIR STATED GOALS ARE VERY
DIFFERENT FROM THOSE OF ZAPATA HIS PRIMARY GOAL WAS TO RESTORE THE LANDS
APPROPRIATED FROM THE LANDOWNERS TO THE DISPOSSESSED INDIGENOUS COMMUNITIES
UNLIKE TODAY'S REBELS HE NEVER WANTED TO TAKE THE CAPITAL OR TO INTRODUCE
SOCIALISM IN FACT THE NOTION THAT MEXICO SHOULD REVERT TO AN ECONOMIC
SYSTEM EMPLOYED ONLY BY THE MOST RETROGRADE DICTATORSHIPS RUNS CONTRARY TO
ZAPATA'S RESPECT FOR DEMOCRATIC PRINCIPLES AT WHICH ELECTION DID THE
MEXICAN PEOPLE VOTE FOR SOCIALISM

THE HIERARCHY IN THE CHIAPAS UPRISING IS CLEAR AT THE BASE OF THE GUERRILLA
PYRAMID LIE THE INDIAN AND MESTIZO PEASANTS ALTHOUGH THEY FIGHT HARD TO
SETTLE REAL AND CONCRETE GRIEVANCES CONCERNING POLITICAL OPPRESSION AND
SOCIAL AND ECONOMIC INEQUALITY THEY ARE ALSO AROUSED BY THE RELIGIOUS
PREACHING OF THOUSANDS OF CATECHIZERS THESE SOLDIERS OF LIBERATION THEOLOGY
ADVOCATE THE USE OF VIOLENCE TO INSTILL THE TEACHINGS OF JESUS CHRIST AND TO
ACHIEVE PERFECT EQUALITY ON EARTH THE INDIANS OFFER THEIR FERVOR AND LIVES
THE CATECHIZERS THEIR SERMONS

JUDGING BY THEIR COMMUNIQUES THE REBEL COMMANDERS ARE PROFESSIONAL URBAN
GUERRILLAS WITH UNIVERSITY EDUCATIONS THEY ARE SIMILAR IN PROFILE TO THOSE
IN CENTRAL AMERICA OR PERU SOME OF THEM ARE MOST LIKELY VETERANS OF THESE
GUERRILLA MOVEMENTS WHO HAVE AT THEIR COMMAND THE HUGE ARSENALS NO LONGER
NEEDED IN THEIR HOME COUNTRIES WHO IS FINANCING THEM BACKING MAY COME FROM
KIDNAPPING OR MISAPPROPRIATION OF OFFICIAL FUNDS PERHAPS THE MOST LIKELY
SOURCE OF INCOME IS DRUGTRAFFICKING WHICH IS COMMON IN THIS REGION

AS A NATIONAL MILITARY THREAT THIS GUERRILLA FORCE HAS NO FUTURE THE
COUNTRY IS TOO LARGE URBAN AND IN SOME RESPECTS DEVELOPED FOR GENERALIZED
SOCIAL VIOLENCE TO PROSPER NEVERTHELESS WHATEVER THE OUTCOME OF THE
CHIAPAS UPRISING IT WILL CHANGE THE FUTURE OF MEXICO THE LESSON TO BE
LEARNED IS CLEAR IF MEXICO WISHES TO PURSUE THE COURSE OF MODERNITY IT IS
IMPERATIVE THAT IT CREATE EFFECTIVE WAYS AND MEANS TO PROVIDE SOCIAL SUPPORT
AND ECONOMIC EXCHANGE SYSTEMS FOR THE POVERTYSTRICKEN THROUGHOUT MEXICO
AND THE PRACTICAL SUCCESS OF THIS LESSON DEPENDS ON ONE PRIOR CONDITION
DEMOCRACY

IF THE MEMBERS OF THE TOWN COUNCILS IN CHIAPAS WERE ELECTED BY THE PEOPLE
RATHER THAN BEING NAMED BY THE CENTRAL GOVERNMENT AND THE LOCAL CACIQUES
THE PEASANTS COULD THEN SELECT THE METHODS THAT WOULD BEST SERVE THEM TO
IMPROVE THEIR DESPERATE CONDITIONS OF ECONOMIC HARDSHIP AND SOCIAL
INJUSTICE THIS DEMOCRATIC REFORM FROM BOTTOM TO TOP AND FROM THE MARGINS TO
THE CENTER IS NOT A UTOPIA ALL IT REQUIRES IS RESPECT FOR THE VOTE AT EVERY
LEVEL

BUT HOW CAN THIS BE ACHIEVED PERHAPS THE BEST FORMULA WOULD BE A NATIONAL
AGREEMENT ON DEMOCRATIC TRANSITION SIGNED BY ALL THE PARTIES AND THEIR
CANDIDATES THE PRI DOES NOT NECESSARILY HAVE TO STEP DOWN FROM POWER
HOWEVER FOR THE FIRST TIME IN ITS LONG HISTORY IT DOES HAVE TO CONSIDER
THAT POSSIBILITY AND TO PERMIT IMPARTIAL AND INDEPENDENT ELECTORAL BODIES TO
HAVE THE FINAL SAY CONCERNING THE ELECTIONS

THROUGHOUT THE CENTURIES MEXICO HAS BEEN TORN BETWEEN THE MAGNETIC
ATTRACTION OF THE PAST AND THE CALL OF THE FUTURE MOST OF MEXICO HAS
ALREADY EMBRACED THE FUTURE NO DEMOCRATICALLY ELECTED PRESIDENT NOT EVEN
THE STATIST CANDIDATE CUAUHTEMOC CARDENAS COULD INVERT THIS PROCESS BOTH
THE REBELLIOUS AND THE PEACEFUL INDIGENOUS PEOPLES OF CHIAPAS SPEAK FROM A
REMOTE PAST BUT THEY HAVE NO DESIRE TO REMAIN THERE ON THE CONTRARY THEY
ARE STRIVING FOR THE SAME AS EVERYONE ELSE IN THE NATION IF MEXICO MAKES
THE MOST OF THIS MALLEABLE MOMENT TO LAUNCH A PROGRAM OF POLITICAL REFORM AS
FARREACHING AS ITS ECONOMIC REFORM THE MORAL FORCE OF SOCIETY WILL DISARM
THE GUERRILLAS AND PUT THEM BACK WHERE THEY BELONG IN AN EXHIBITION ROOM
NEXT TO THE PRI DINOSAURS IN THE HISTORY MUSEUM

MR KRAUZE IS AN AUTHOR AND COEDITOR OF VUELTA MAGAZINE THIS ARTICLE WAS
TRANSLATED BY CHARLOTTE BROAD 9401210140 940121 TECHNOLOGY & MEDICINE 
MICROSOFT PLANS TO OFFER USERS NEW APPROACH  BY G PASCAL
ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL

MICROSOFT CORP WORRIED THAT ITS WINDOWS SOFTWARE MAY BE TOO DAUNTING FOR
HOME COMPUTER USERS PLANS TO OFFER LATER THIS YEAR A NEW LOOK AND FEEL
FEATURING FAMILIAR SCENES SUCH AS A LIVING ROOM

THE EFFORT CODE NAMED UTOPIA REFLECTS MICROSOFT'S DESIRE TO EXPERIMENT
WITH EASIER WAYS OF CONTROLLING SOFTWARE THAN THE COMPANY'S WINDOWS
APPROACH WHICH SOME EXECUTIVES AT THE COMPANY THINK IS TOO CONFUSING TO
CHILDREN AND SOME ADULTS WHO USE COMPUTERS AT HOME

RATHER THAN RELY ON ICONS OR PICTURES OF POPULAR COMMANDS AND LISTS OF
OPTIONS CALLED MENUS THE UTOPIA INTERFACE PRESENTS SCENES FROM THE PHYSICAL
WORLD ONE UTOPIA PROTOTYPE OFFERS A SCREEN IMAGE OF A ROOM WITH A DESK AND
PLAY MATERIALS POINTING AND CLICKING ON AN IMAGE LAUNCHES AN ACTIVITY OR
SHIFTS THE SCENE TO ANOTHER PART OF THE HOUSE

THE NEW INTERFACE WHICH WILL APPEAR IN SEVERAL MICROSOFT PRODUCTS TO BE
RELEASED IN THE SECOND HALF OF 1994 RUNS ON TOP OF THE WINDOWS PROGRAM AND
ISN'T INTENDED TO REPLACE IT BUT UTOPIA DOES GIVE MICROSOFT THE WORLD'S
LARGEST SOFTWARE MAKER THE CHANCE TO FIND OUT IF YOU NEED A RADICALLY
DIFFERENT INTERFACE IN THE FUTURE SAID MICHAEL MAPLES MICROSOFT'S TOP
EXECUTIVE FOR NEW PRODUCTS

MR MAPLES SAID THE HOME MARKET IS THE IDEAL PLACE TO TEST THE APPEAL OF
WHAT HE CALLED A PHYSICALWORLD METAPHOR FOR SOFTWARE

OTHER SOFTWARE SUPPLIERS ALREADY HAVE SEEN GOOD RESULTS IN OFFERING PROGRAMS
THAT MAKE WORKING A COMPUTER SEEM LIKE AN EXERCISE IN HANDLING FAMILIAR
OBJECTS BRODERBUND SOFTWARE INC SELLS A POPULAR PROGRAM FOR YOUNG CHILDREN
CALLED PLAYROOM GENERAL MAGIC INC'S MAGIC CAP INTERFACE WHICH IS DRAWING
SUPPORT AS A STANDARD FOR TELECOMPUTING RELIES ON A SCENE DEPICTING A
CITY'S DOWNTOWN IN ORDER TO HELP USERS SHUTTLE AMONG ELECTRONIC SERVICES

THIS APPROACH SEEMS LIKELY TO SPREAD BECAUSE IT SEEMS FUN TO PEOPLE WHO ARE
AFRAID OF TECHNOLOGY SAID MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE
OFFICER

SOFTWARE THAT PRESENTS THE PHYSICAL WORLD AS TOOLS FOR MANIPULATION COULD
BE EVERYWHERE IN A FEW YEARS MR PORAT ADDED FIRST THE COMPUTER THEN
PERSONAL COMMUNICATORS THE TELEVISION AND THE STEREO

THE TREND ULTIMATELY COULD UNDERMINE MICROSOFT'S HOLD OVER THE SOFTWARE
MARKET WHICH IN THE PAST FOUR YEARS HAS DECIDEDLY SHIFTED TOWARD PROGRAMS
THAT ADHERE TO THE WINDOWS LOOK AND FEEL

THERE'S A HUGE MARKET FOR SOMETHING EASIER TO USE THAN WINDOWS THAT INVITES
KIDS IN SAID SALLY NARODICK CHIEF EXECUTIVE OFFICER OF EDMARK CORP
WHICH MAKES A LINE OF HOME SOFTWARE THAT PRESENTS PHYSICAL WORLDS INCLUDING
KID DESK

MS NARODICK SAID THAT BECAUSE OF MICROSOFT'S SIZE AND MARKETING CLOUT THE
COMPANY'S SUPPORT FOR THE APPROACH SHOULD BROADEN INTEREST IN IT
9401210139 940121 WHO'S CUTE AND PURE PLUTONIUM PLUTO A NUCLEAR
ACTIVIST CARTOON  BY QUENTIN HARDY STAFF REPORTER OF THE WALL
STREET JOURNAL

TOKYO DRINK YOUR PLUTONIUM IT'S GOOD FOR YOU

A JAPANESE NUCLEARPOWER LOBBY IS SPREADING THE WORD THAT WHEN USED
PROPERLY PLUTONIUM ISN'T DANGEROUS BUT DOWNRIGHT FRIENDLY

THE POWER REACTOR AND NUCLEAR FUEL DEVELOPMENT CORP HAS DECIDED TO TELL ITS
STORY THROUGH A CARTOON MASCOT RELIABLE FRIEND LITTLE PLUTO A
ROSYCHEEKED LITTLE GUY WEARING A SNUG HELMET WITH THE INITIALS PU
PLUTONIUM'S UNFORTUNATE PERIODIC SYMBOL PLUTO STARS IN A PROMOTIONAL
VIDEO INTENDED TO ALLAY FEARS ABOUT DANGEROUS UNSTABLE ELEMENTS

LIKE A LOT OF PEOPLE LITTLE PLUTO IS SCARED OF NUCLEAR WEAPONS I WAS USED
FOR BOMBS WHICH WAS VERY REGRETTABLE HE CONCEDES LIKE A POLITICIAN
DISCUSSING HIS COLLEGE YEARS I REALLY HATE WAR PLUTO ADDS I'D LIKE TO
WORK FOR PEACE DYNAMITE IS DANGEROUS BUT IT'S USEFUL FOR HUMANS I'D LIKE
TO BE LIKE THAT

LITTLE PLUTO WANTS TO TALK TURKEY ABOUT THE DANGERS OF PLUTONIUM EXPOSURE
IT'S A MISUNDERSTANDING SAYS THE DIMINUTIVE PARTICLE EMITTER PEOPLE
THINK I'M A CAUSE OF CANCER PLUTONIUM ISN'T LIKE CYANIDE WHERE JUST A
LITTLE BIT CAN KILL YOU

THE VIDEO SHOWS A CARTOON MAN WHO'S BLOATED FROM DOWNING SIX MUGS OF
PLUTONIUM COCKTAIL EVEN IF YOU SWALLOW IT SAYS PLUTO IT GOES RIGHT OUT
YOUR BODY A TOILET FLUSHES AND THE MAN EMERGES SLIM I FEEL SO FRESH
HE EXULTS

PLUTO'S BOSSES ARE NOT SURPRISINGLY PROPU WE WANT PEOPLE TO UNDERSTAND
THAT PLUTONIUM ISN'T THREATENING IF WE TREAT IT CAREFULLY SAYS TAKASHI
DAIMON A SPOKESMAN AT POWER REACTOR AND NUCLEAR DEVELOPMENT WHICH HOPES TO
OPERATE A FASTBREEDER REACTOR IN THE CITY OF TSURUGA IN NORTHERN JAPAN

LITTLE PLUTO IS CERTAINLY GENERATING A LOT OF HEAT AMONG JAPAN'S ANTINUCLEAR
ACTIVISTS THE VIDEO IS ABSURD PLUTONIUM IS A DEADLY POISON SAYS KIYOSHI
YOSHIMURA OF THE TSURUGA CITIZEN'S GROUP THAT PROTESTS AGAINST CONSTRUCTION
OF THE FASTBREEDER REACTOR HE CITES JAPANESE GOVERNMENT REPORTS THAT SAY
INGESTING PLUTONIUM CAN BE FATAL THE VIDEO IS CUTE BUT MISLEADING MR
YOSHIMURA SAYS

MR YOSHIMURA DOESN'T VERY UNSCIENTIFIC SAYS THE PROTESTER I THINK A
LOT MORE PEOPLE WILL BE SUSPICIOUS ABOUT PLUTONIUM AFTER THIS 9401210138
940121 PACIFICARE HEALTH SYSTEMS INC

CYPRESS CALIF PACIFICARE HEALTH SYSTEMS INC SAID ITS PACIFICARE OF
WASHINGTON SUBSIDIARY SIGNED AN AGREEMENT TO ACQUIRE PREFERRED HEALTH
RESOURCES INC A SEATTLE HEALTHCARE COMPANY TERMS WEREN'T DISCLOSED

PREFERRED HEALTH RESOURCES OPERATES NETWORK HEALTH PLAN A STATELICENSED
HEALTHCARE SERVICES CONTRACTOR WITH MORE THAN 32000 MEMBERS AND NETWORK
MANAGEMENT INC A THIRDPARTY ADMINISTRATOR WITH MORE THAN 40000
ENROLLEES COMPLETION OF THE ACQUISITION WHICH IS SUBJECT TO REGULATORY
APPROVAL IS EXPECTED WITHIN 45 DAYS 9401210137 940121 WARHOL'S BACKERS
ARGUE THAT WARHOL IS PASSE  BY ALEXANDRA PEERS STAFF REPORTER OF
THE WALL STREET JOURNAL

ANDY WHO

IN A BIZARRE LEGAL BATTLE TAKING PLACE IN NEW YORK STATE SURROGATE'S COURT
THE FOUNDATION THAT CONTROLS ANDY WARHOL'S WORK IS ARGUING THAT THE POPART
MASTER'S 15 MINUTES OF FAME MAY BE OVER

THE COURT CASE IS BEING WAGED TO SETTLE A VALUATION OF THE WARHOL ESTATE
ITS THOUSANDS OF CELEBRITY PORTRAITS AND CAMPBELL SOUPCAN AND BRILLOBOX
POP ART ARE COLLECTIVELY VALUED AT EITHER 220 MILLION OR 827 MILLION
DEPENDING ON WHOSE CALCULATOR IS ADDING IT UP AND AT WHAT POINT IN THE ART
MARKET'S FURIOUS BOOMBUST CYCLE THEY STARTED TO COUNT

ON ONE SIDE OF THE COURTROOM IS ED HAYES THE ESTATE'S ONETIME GENERAL
COUNSEL MR HAYES WHO SERVED AS THE ESTATE'S ATTORNEY FOR SIX YEARS IS
ARGUING THAT BECAUSE WARHOL WAS A GENIUS WHOSE PLACE IN ART HISTORY IS
SECURE THE VALUE OF THE ESTATE WHICH HOLDS SECURITIES REAL ESTATE AND
ART IS 827 MILLION HE HAS GOOD REASON TO ESTIMATE HIGH IF HE PREVAILS
HE COULD GET A FEE OF 16 MILLION

ON THE OTHER SIDE OF THE TABLE AND AT THE LOW END OF THE SPECTRUM IS THE
ESTATE'S CHIEF BENEFICIARY THE ANDY WARHOL FOUNDATION FOR THE VISUAL ARTS
SIDING WITH THE FOUNDATION ON THE ESTIMATE IS THE EXECUTOR OF WARHOL'S
ESTATE FREDERICK HUGHES

MR HAYES SAYS THE WARHOL FOUNDATION WANTS TO KEEP THE VALUATION LOW SO THEY
CAN PAY HIM LESS AND THE FOUNDATION WILL LOOK SMARTER IF THEY LATER SELL THE
WORKS FOR MORE MONEY THE FOUNDATION'S 220 MILLION FIGURE WAS ASSIGNED BY
AN OUTSIDE APPRAISER AT THE BOTTOM OF THE ART MARKET IN THE SPRING OF 1991

THE WARHOL FOUNDATION'S STAR WITNESS VETERAN ART DEALER ANDRE EMMERICH
TOOK THE STAND LATE LAST WEEK TO WARN OF A POTENTIAL PERIOD OF OBLIVION
FOR WARHOL IN COMING YEARS BRILLO BOXES WILL NO LONGER LOOK THE SAME 
 COCACOLA BOTTLES HAVE ALREADY BEGUN TO DISAPPEAR CAMPBELL SOUP LABELS
WILL CHANGE TO OUR CHILDREN AND GRANDCHILDREN WARHOL WORKS MAY HAVE
LOST THEIR FRESHNESS HE WARNED

MOREOVER MR EMMERICH SAID WARHOL IS MORE AT RISK THAN MOST ARTISTS OF HIS
GENERATION OF BECOMING UNFASHIONABLE WARHOL'S CELEBRITY PORTRAITS OF
ELVIS PRESLEY MARILYN MONROE ELIZABETH TAYLOR WILL BE FORGOTTEN AS SOON
AS THE CELEBRITIES HE TESTIFIED FUTURE GENERATIONS MAY TREASURE A
SILKSCREEN OF MARILYN MONROE ABOUT AS MUCH AS A PHOTOGRAPH OF ALICE
ROOSEVELT LONGWORTH WHICH IS TO SAY NOT MUCH

COUNTERS FRANCIS HARVEY AN ESTATE ATTORNEY WHO WORKED WITH MR HAYES WHO
THE HELL WAS MONA LISA

AND WHILE MR HAYES'S SIDE WAXES ELOQUENT ON WARHOL'S DISTINCTIVE EASILY
RECOGNIZABLE STYLE AND HIS SIMILARITY TO PABLO PICASSO EXPERTS TESTIFYING
FOR THE WARHOL FOUNDATION DRAW PARALLELS TO LESSER ARTISTIC LIGHTS SUCH AS
CRUSHEDCARPARTS SCULPTOR JOHN CHAMBERLAIN ARCHIBALD GILLIES THE
FOUNDATION'S OWN PRESIDENT SAYS WARHOL IS NO PICASSO EXCEPT PERHAPS WHEN
IT COMES TO THE ABUNDANCE OF HIS WORK

THE WARHOL FOUNDATION ATTORNEYS DENY THAT THEIR LEGAL STRATEGY ESSENTIALLY
RUNS DOWN THE FOUNDATION'S OWN PROGENITOR THEY ARGUE THAT 220 MILLION IS A
STAGGERING AMOUNT FOR THE WORK OF A CONTEMPORARY ARTIST AND THAT THE
EXPERTS WHO TESTIFIED TO MR HAYES'S HIGHER VALUATION ARE USING JEANE
DIXON FORTUNETELLING THEY SAY THE FOUNDATION IS KEEPING WARHOL'S MEMORY
ALIVE BY FUNDING AN ANDY WARHOL MUSEUM IN HIS HOMETOWN OF PITTSBURGH AND BY
LENDING OR SELLING WARHOL ART TO 62 MUSEUMS WORLDWIDE

WARHOL THE PIONEER OF THE POPART MOVEMENT DIED FEB 22 1987 AT THE AGE
OF 58 ALMOST IMMEDIATELY THE GHOUL FACTOR SET IN THE ARTWORLD
PHENOMENON IN WHICH PRICES OF A DEAD ARTIST'S WORK TAKE OFF DUE TO FINANCIAL
SPECULATION THE CUTOFF IN SUPPLY AND A POSTHUMOUS REEVALUATION OF HIS
TALENT BY COLLECTORS AND TRENDSETTING MUSEUMS AT THE SAME TIME THE GREAT
ARTMARKET BOOM OF THE LATE 1980S WAS RAGING BEFORE WARHOL'S DEATH NO
WARHOL WORK HAD SOLD FOR MORE THAN 1 MILLION IN THE FIVE YEARS FOLLOWING
WARHOL'S DEATH ALMOST TWO DOZEN WORKS BROKE THAT BARRIER

IN 1989 A HUGELY SUCCESSFUL RETROSPECTIVE OF HIS WORK WAS MOUNTED BY THE
MUSEUM OF MODERN ART IN NEW YORK AND TOURED THE WORLD IN THE EXHIBITION'S
CATALOG SOME OF THE WORLD'S LEADING ART CRITICS LAUDED WARHOL AS THE
PRIMARY ARTIST OF HIS GENERATION

NOW THE WHOLE VALUATION ISSUE TURNS ON HOW MUCH WARHOL ART THERE ACTUALLY
IS SINCE APPRAISERS SOMETIMES FIGURE IN A A DISCOUNT IF AN ART ESTATE HAS A
LARGE NUMBER OF SIMILAR WORKS AND IT SEEMS WARHOL'S STYLE OF CREATION MAY
HAVE BOOBYTRAPPED HIS OWN ARTISTIC LEGACY THE SILKSCREENING PROCESS HE
USED MOST FREQUENTLY FACILITATED MULTIPLE COPIES OF EACH WORK WHILE THE
FOUNDATION FOUGHT HARD AND SUCCESSFULLY TO KEEP THE TOTAL NUMBER OF
WORKS IN THE ESTATE OUT OF THE PUBLIC RECORD SOURCES CLOSE TO THE ESTATE
PUT IT AT AN AWESOME 4000 PAINTINGS 8000 DRAWINGS AND MORE THAN 60000
PHOTOGRAPHS OFTEN TAKEN BY WARHOL AS STUDIES FOR LATER WORKS

MR HAYES BELIEVES SO STRONGLY IN HIS OWN SIDE'S VALUE ESTIMATES AND THE
WARHOL LEGACY THAT HE IS WILLING TO SETTLE HIS ENTIRE CLAIM IN EXCHANGE FOR
19879 BLACKANDWHITE POLAROIDS WARHOL TOOK AS STUDIES FOR FUTURE WORKS
THE FOUNDATION APPRAISED THE PHOTOS AT 107000 TO MR HAYES HOWEVER THEY
ARE THE BLUEPRINT FOR WARHOL'S LIFE'S WORK AND ARE WORTH THE ADDITIONAL 12
MILLION HE SAYS HE IS STILL OWED IN LEGAL FEES IN FACT HE WOULD PREFER TO
BE PAID IN WARHOL ART NOT CASH AND PLANS TO GO INTO THE ARTDEALER
BUSINESS

BUT MR GILLIES FLATLY REFUSING TO USE WARHOL ART AS PAYMENT SAYS
IMAGINE LETTING ED HAYES LOOSE SELLING ART IN AIRPORTS EVERYBODY GETS A
PIECE OF ANDY WARHOL IN FACT THE JUDGE MAY DECIDE THE CASE NOT ON THE
ESTATE'S VALUE BUT ON UPCOMING HEARINGS THAT ADDRESS WHETHER MR HAYES
EARNED HIS MONEY

MR HUGHES IS SIDING WITH THE FOUNDATION ON THE EVALUATION BUT DECLINES TO
DISCUSS THE WARHOL FOUNDATION'S LEGAL STANCE TOWARD HIS OLD FRIEND BUT OF
WARHOL HE SAYS IF I WAS NOT 100 SURE OF HIS GENIUS WHEN HE DIED I AM
NOW IN WARHOL'S ART HE SAYS I DISCOVER NEW THINGS ALL THE TIME

I THINK IT WILL BE A LONG TIME BEFORE ANYONE COMES CLOSE TO ANY
UNDERSTANDING OF ANDY WARHOL 9401210136 940121 ON ASSIGNMENT PLANS
ACQUISITION

CANOGA PARK CALIF ON ASSIGNMENT INC SIGNED A LETTER OF INTENT TO
ACQUIRE PRIVATELY HELD 1ST CHOICE MORTGAGE PERSONNEL INC

ON ASSIGNMENT SAID IT WILL PAY 700000 IN A COMBINATION OF CASH AND STOCK
FOR THE FIRM ON ASSIGNMENT SAID IT ALSO GAVE KEY EMPLOYEES AT 1ST CHOICE
MORTGAGE OPTIONS TO BUY A TOTAL OF 150000 OF 1ST CHOICE COMMON STOCK

THE TRANSACTION IS SUBJECT TO NUMEROUS CONDITIONS

ON ASSIGNMENT SAID IT EXPECTS THE ACQUISITION TO CONTRIBUTE POSITIVELY TO
1994 REVENUE AND EARNINGS 9401210135 940121 WHO'S NEWS COSMETIC CENTER
INC

COSMETIC CENTER INC SAVAGE MD WILLIAM E MAYER 53 YEARS OLD WAS
ELECTED A DIRECTOR OF THIS COSMETICS RETAILER FILLING A VACANCY ON THE
SEVENMEMBER BOARD MR MAYER IS DEAN OF THE COLLEGE OF BUSINESS AND
MANAGEMENT AT THE UNIVERSITY OF MARYLAND 9401210134 940121 ECONOMY 
STRONGYEN POLICY BUOYED US EXPORTS BUT TRADE DEFICIT WITH JAPAN HELD
FIRM  BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET
JOURNAL

TOKYO WHEN JAPAN RELEASES YEAREND TRADE STATISTICS TODAY THE CLINTON
ADMINISTRATION LIKELY WILL GET SOME MIXED NEWS THE PRESIDENT'S STRONGYEN
POLICY HELPED BRIGHTEN AMERICA'S TRADE RELATIONSHIP WITH JAPAN BUT ONLY
HALFWAY US EXPORTS TO JAPAN HAVE PICKED UP STEAM BUT THE BILATERAL TRADE
IMBALANCE HASN'T BUDGED

LAST YEAR THE YEN ROSE SHARPLY AGAINST THE DOLLAR AFTER PRESIDENT CLINTON
AND TREASURY SECRETARY LLOYD BENTSEN SAID PUBLICLY THAT THEY THOUGHT THE YEN
SHOULD BE STRONGER THE JAPANESE CURRENCY NEARLY REACHED PARITY WITH THE
PENNY IN AUGUST BEFORE WEAKENING SOMEWHAT IN THE SUCCEEDING MONTHS

NOW AT ABOUT 111 YEN TO THE DOLLAR THE JAPANESE UNIT IS STILL 12 STRONGER
THAN IT WAS AT THE BEGINNING OF 1993 AND THE EFFECT AS THE ADMINISTRATION
HOPED IS TELLING US GOODS ARE NOW LESS EXPENSIVE IN TERMS OF YEN AND
THAT HAS SET OFF A SURGE IN BUSINESS FOR US COMPANIES SELLING IN JAPAN 
HALF THE BATTLE IN THE EFFORT TO SHRINK THE HUGE TRADE DEFICIT WITH JAPAN

SALES OF US GOODS FROM PHARMACEUTICALS TO SEMICONDUCTORS ARE UP IN JAPAN
IN OCTOBER THE CURRENCY SHIFT ALLOWED HJ HEINZ CO OF PITTSBURGH TO SLASH
THE PRICE OF A BOTTLE OF KETCHUP SOLD IN JAPAN BY 20 TO 250 YEN 225
BY NOVEMBER THE COMPANY SAYS ITS SHARE OF JAPAN'S KETCHUP MARKET LEAPED
THREE PERCENTAGE POINTS FROM SEPTEMBER LEVELS TO NEARLY 10

JAPANESE TRADE DATA SHOW THAT US EXPORTS TO JAPAN GREW NEARLY 9 IN DOLLAR
TERMS IN THE SIX MONTHS THROUGH LAST SEPTEMBER AFTER FALLING MORE THAN 2
IN THE PREVIOUS 12 MONTHS THE TREND CONTINUED IN SUCCEEDING MONTHS
ALTHOUGH AT A SLOWER CLIP US EXPORTS TO JAPAN INCHED UP 02 IN OCTOBER
AND GREW 4 IN NOVEMBER

NOW THE BAD NEWS EVEN THOUGH US EXPORTS TO JAPAN ARE UP JAPAN'S TRADE
SURPLUS WITH THE US ESTIMATED AT ABOUT 50 BILLION IN 1993 IS
ESSENTIALLY AS BIG AS EVER

INDEED US TREASURY OFFICIALS ARE CONCERNED THAT TOKYO LATELY HAS ALLOWED
THE YEN TO WEAKEN IN AN EFFORT TO BOOST JAPAN'S EXPORTS AND THUS HELP LIFT
THE NATION OUT OF RECESSION ALLOWING THE YEN TO SLIDE IS NOT AN ACCEPTABLE
WAY OUT OF RECESSION FOR JAPAN MR BENTSEN SAID EARLIER THIS MONTH THE
TREASURY PREFERS THAT JAPAN INSTEAD CUT TAXES TO SPUR ITS ECONOMY

MANY ECONOMISTS WORRY THAT THE SURPLUS WITH THE US MAY NOT DECLINE FOR
SOME TIME TO COME THE REASON IN LARGE PART IS AMERICA'S UNDYING LOVE
AFFAIR WITH JAPANESE PRODUCTS THE US ECONOMIC RECOVERY HAS SUCKED IN
BILLIONS OF DOLLARS OF JAPANESE GOODS EVEN THOUGH WHEN COMPARED WITH
EARLY 1992 THOSE PRODUCTS ARE NOW MORE EXPENSIVE IN DOLLAR TERMS BECAUSE OF
THE CURRENCY SHIFT IN MANY CASES JAPAN IS A MAJOR OR EXCLUSIVE 
SOURCE OF GOODS EXPORTS TO THE US OF JAPANESE VIDEO CAMERAS IN NOVEMBER
FOR EXAMPLE SURGED 37

PARTLY AS A RESULT OF THE US ECONOMY'S EXPANSION JAPAN'S EXPORTS TO THE
US ROSE 83 IN DOLLAR TERMS IN NOVEMBER AND BECAUSE TRADE STATISTICS ARE
REPORTED IN DOLLARS THE YENDOLLAR CURRENCY SHIFT ALSO WORKED TO BOOST THE
OVERALL DOLLAR VALUE OF JAPAN'S SURPLUS WITH THE US THE SOCALLED
JCURVE EFFECT NOTABLY THOUGH JAPAN'S GLOBAL SURPLUS DECLINED IN
NOVEMBER FOR THE FIRST TIME IN THREE YEARS BECAUSE THE COUNTRY'S OVERALL
IMPORTS GREW FASTER THAN ITS EXPORTS

SO IT'S NO SURPRISE THAT US TRADE NEGOTIATORS WERE BACK IN TOKYO EARLIER
THIS MONTH PRESSING THE JAPANESE TO BUY MORE AND IT'S LIKELY THAT THE
TENSIONS WILL CONTINUE TO RISE AHEAD OF NEXT MONTH'S SUMMIT IN WASHINGTON
BETWEEN THE LEADERS OF BOTH COUNTRIES

AT THE VERY LEAST THOUGH PRESIDENT CLINTON CAN PRETTY MUCH COUNT ON A
FURTHER INCREASE IN US EXPORTS TO JAPAN DURING 1994 REGARDLESS OF WHAT
HAPPENS TO THE OVERALL TRADE BALANCE TOSHIYUKI IMAI ECONOMIST AT THE JAPAN
CENTER FOR ECONOMIC RESEARCH FORECASTS A 36 RISE IN US SHIPMENTS TO
JAPAN TO 5817 BILLION

THE CHIEF REASON EXPORTS TO JAPAN ARE EXPECTED TO INCREASE IS THAT ANALYSTS
EXPECT THE YEN TO STAY RELATIVELY STRONG DURING THE YEAR EVEN THOUGH IT
MIGHT SLIP FURTHER AGAINST THE DOLLAR IN THE SHORT TERM A FIRM YEN WILL
PROTECT MUCH OF THE BENEFICIAL CURRENCY EFFECT THAT US EXPORTERS ARE
ENJOYING PARTICULARLY THE NEW PHENOMENON OF IMPORT SUBSTITUTION IN JAPAN
CONSUMERS ARE GETTING HOOKED ON IMPORT BARGAINS AND MANUFACTURERS ARE
BRINGING IN CHEAPER PARTS AND RAW MATERIALS

IT JUST MAKES SENSE TO BRING IN GOODS FROM OVERSEAS SAYS BARING
SECURITIES ECONOMIST GEOFFREY BARKER THE YEN WAS A CATALYST FOR THAT
PROCESS MR BARKER THINKS THE IMPORT TREND IS PROBABLY HERE TO STAY

ROBERT FELDMAN ECONOMIST AT SALOMON BROTHERS IN TOKYO THINKS THE JAPANESE
CURRENCY WILL IN FACT SOFTEN TO 117 YEN TO THE DOLLAR IN THE NEXT FEW
MONTHS THEN REBOUND TOWARD 110 YEN IN THE SECOND HALF OF THE YEAR HIS
REASONING MANY INVESTORS EXPECT JAPAN TO CUT INTEREST RATES FURTHER TO SPUR
ITS WEAK ECONOMY AND THE BOOMING US TO DO THE OPPOSITE SO MONEY IS
FLOWING INTO HIGHERYIELDING DOLLARS UNDERMINING THE YEN BUT MR FELDMAN
THINKS THAT TREND WILL REVERSE AFTER MIDYEAR WHEN JAPAN ENTERS A MODEST
RECOVERY AND THE US EXPANSION FAILS TO LIVE UP TO EXPECTATIONS

IF HE'S RIGHT TOKYO TSHIRT PRINTER ART VILLAGE INC WILL LIKELY KEEP ON
BUYING AMERICAN MANAGING DIRECTOR AKIO SUZUKI SAYS HIS COMPANY HAS SWITCHED
FROM MOSTLY JAPANESE SUPPLIERS TO FRUIT OF THE LOOM INC OF CHICAGO THE
STRONG YEN MADE THE US SHIRTS 25 TO 35 CHEAPER THAN JAPANESE PRODUCTS

NOW WE BUY ABOUT 70 OF OUR SCREENPRINTED TSHIRTS FROM THEM MR SUZUKI
SAYS

AND THE BILATERAL BALANCE OF TRADE ECONOMISTS ARE SPLIT ON THE OUTLOOK
SHINYA NEMOTO ECONOMIST AT NOMURA RESEARCH INSTITUTE THINKS THE US
EXPORT WAVE WILL HELP REDUCE JAPAN'S TRADE SURPLUS IN THE COMING YEAR BUT
MORE ANALYSTS SIDE WITH THE JAPAN CENTER'S MR IMAI HE ESTIMATES THAT
JAPAN'S SURPLUS WITH THE US ACTUALLY WILL EXPAND 4 IN 1994 TO 5162
BILLIONNEARLY MATCHING THE RECORD 5209 BILLION SET IN 1987

KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9401210133 940121
ENTERPRISE FRANCHISEE GROUP TELLS TALE OF SUPPLY FINANCING WOES  
BUT WINNER'S CIRCLE ASSERTS OUTLET OWNERS HAVE VIABLE OPPORTUNITIES 
 BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL

LIKE MANY BUSINESS NEOPHYTES WILLIAM E MITCHELL THOUGHT HE COULD ELIMINATE
STARTUP PROBLEMS BY BUYING A FRANCHISE HE WAS WRONG

MR MITCHELL A SAVANNAH GA AUTO MECHANIC WANTED TO OPEN A SPECIALTY
SHOP FOR AUTORACING FANS LIKE HIMSELF LAST SUMMER HE SPOTTED AN ENTICING
NEWSPAPER ADVERTISEMENT IN WHICH WINNER'S CIRCLE FRANCHISE DEVELOPMENT CORP
SOUGHT FRANCHISEES FOR JUST THAT KIND OF STORE

AFTER VISITING A WINNER'S CIRCLE SALES OFFICE IN HILTON HEAD SC MR
MITCHELL SAYS HE PAID 12500 FOR A FRANCHISE AND OPENED A SAVANNAH STORE IN
NOVEMBER I ASSUMED I WAS GOING TO GET A LOT OF HELP WHICH I WAS PROMISED
BY THE FRANCHISER HE RECALLS

BUT WINNER'S CIRCLE HAS FAILED TO SUPPLY OR FINANCE AN ADEQUATE
INVENTORY OF APPAREL AND SOUVENIRS MR MITCHELL CONTENDS HE SAYS THAT HIS
STORE LOST HUNDREDS OF DOLLARS A DAY IN SALES DURING THE CRUCIAL HOLIDAY
SEASON MOSTLY BECAUSE IT LACKED GOODS PICTURING THE RENOWNED RACER DALE
EARNHARDT THE COMPANY DENIES ALLEGATIONS BY MR MITCHELL AND SEVERAL OTHER
UNHAPPY FRANCHISEES

MANY FRANCHISEES FIND THAT THEIR FRANCHISERS PROMISE PLENTY BUT DELIVER
LITTLE THE RESULT CAN BE DEVASTATING IF THE FRANCHISEE IS COUNTING ON THE
FRANCHISER FOR ESSENTIAL SERVICES OR SUPPLIES MANY FRANCHISEES DISCOVER
ONCE THEY ARE IN THE BUSINESS THAT THEY ARE PAYING ROYALTIES FOR NOTHING
SAYS W MICHAEL GARNER A NEW YORK FRANCHISING LAWYER

MR MITCHELL ISN'T THE ONLY WINNER'S CIRCLE FRANCHISEE TO VOICE DOUBTS
JAMES A MEANEY A COLUMBUS OHIO LAWYER SAYS HE WROTE COMPLAINTS TO
OHIO'S ATTORNEY GENERAL LAST MONTH ON BEHALF OF MR MITCHELL AND SEVEN
OTHER WINNER'S CIRCLE FRANCHISEES HE SAYS THE FRANCHISEES WANT REFUNDS
RANGING FROM 14500 TO 33000 TO COVER THEIR INITIAL INVESTMENTS AND
CERTAIN OTHER COSTS THE ATTORNEY GENERAL'S OFFICE SAYS THAT IT WILL STUDY
WHETHER THE STATE SHOULD TRY TO GET THE FRANCHISEES' MONEY BACK

MR MEANEY SAYS FOUR OF HIS EIGHT CLIENTS HAVE OPENED WINNER'S CIRCLE UNITS
THE OTHERS PAID FOR FRANCHISES BUT HAVEN'T OPENED THEIR STORES BECAUSE OF
THE ALLEGED SUPPLY PROBLEMS ACCORDING TO MR MEANEY ALL EIGHT CONTEND THAT
WINNER'S CIRCLE HAS FAILED TO KEEP THEM FULLY SUPPLIED FROM A CENTRAL
WAREHOUSE AND TO PROVIDE THEM WITH 30DAY FINANCING FOR THEIR INVENTORY

MR MITCHELL FOR INSTANCE SAYS HE IS STRUGGLING TO STRIKE HIS OWN DEALS
WITH OUTSIDE SUPPLIERS A PROCESS THAT HAS REQUIRED ABOUT 20000 MORE CASH
THAN HE HAD EXPECTED TO NEED I'M HANGING ON BY THE SKIN OF MY TEETH HE
SAYS MEANWHILE HE IS REFUSING TO PAY THE 5 CUT OF SALES THAT HE OWES
WINNER'S CIRCLE IF I PAID THE ROYALTY I'D BE BANKRUPT HE ADDS

GARY R BLUME A SCOTTSDALE ARIZ ATTORNEY FOR WINNER'S CIRCLE REPLIES
YOU HAVE HERE A GROUP OF SUCCESSFUL FRANCHISEES WHO DON'T WANT TO PAY THEIR
ROYALTIES

WARD H KERR THE FRANCHISER'S PRESIDENT ATTRIBUTES THEIR GRIEVANCES TO
TEMPORARY STARTUP PROBLEMS THERE WERE SOME GLITCHES IN THE BEGINNING BUT
THEY ARE ALL BEING WORKED OUT HE SAYS THE COMPANY IS RESISTING REFUNDS
HOWEVER BECAUSE THE FRANCHISEES HAVE VIABLE BUSINESS OPPORTUNITIES HE
INSISTS

WINNER'S CIRCLE AND ITS CRITICS AGREE THAT THE COMPANY RADICALLY CHANGED ITS
INITIAL OPERATING PLANS THE ORIGINAL IDEA WAS THAT A WELLSTOCKED
DISTRIBUTION CENTER WOULD SPARE FRANCHISEES THE COSTS AND TROUBLE OF
DEVELOPING THEIR OWN RELATIONSHIPS WITH DOZENS OF OUTSIDE SUPPLIERS THE
DISTRIBUTION CENTER WAS THE KEY TO THE FRANCHISING PROGRAM SAYS RICK
RIFFEL A FORMER CONSULTANT TO WINNER'S CIRCLE WHO HAS HAD A DISAGREEMENT
WITH THE COMPANY

MR RIFFEL IS A PARTNER IN TENNESSEE CONNECTION A SPECIALTY RETAILER WITH
LAKEWOOD NY AND ERIE PA STORES FOR AUTORACING BUFFS LAST SEPTEMBER
WINNER'S CIRCLE OPENED A WAREHOUSE ALSO NAMED TENNESSEE CONNECTION IN
ABILENE TEXAS

WINNER'S CIRCLE LATER DECIDED THAT IT WOULD BE TOO COSTLY TO MEET
FRANCHISEES' FULL INVENTORY NEEDS THROUGH THAT WAREHOUSE MR KERR SAYS THE
FRANCHISER NOW HELPS FRANCHISEES TO OBTAIN SUPPLIES INDIVIDUALLY HE ADDS
AS FOR INVENTORY FINANCING MR KERR DENIES BREAKING ANY PROMISES

MR KERR SAYS THAT HE FORMED WINNER'S CIRCLE LAST MAY WITH INVESTORS RICHARD
KERN THEN OF SCOTTSDALE ARIZ AND RICHARD L LEVINGER THEN OF HILTON
HEAD MR KERN STILL OWNS THE MAJORITY OF STOCK BUT MR LEVINGER NO LONGER
IS AN OWNER ACCORDING TO MR KERR NEITHER MR KERN NOR MR LEVINGER COULD
BE REACHED

IN FRANCHISEOFFERING CIRCULARS LAST YEAR WINNER'S CIRCLE LISTED ONLY ONE
OFFICER MR KERR AND GAVE AN ERIE ADDRESS AS ITS PRINCIPAL PLACE OF
BUSINESS MR RIFFEL SAYS WINNER'S CIRCLE ACTUALLY HAD ONLY A POSTAL BOX IN
ERIE THOUGH HE SAYS HE CONDUCTED WINNER'S CIRCLE FRANCHISEE TRAINING
SESSIONS AT HIS COMPANY'S STORE THERE MR KERR SAYS HE DOESN'T RECALL
LISTING THE COMPANY'S HEADQUARTERS AS ERIE BUT CONFIRMS THAT TRAINING
OCCURRED IN ERIE WINNER'S CIRCLE ACTUALLY HAS HEADQUARTERS IN ABILENE
ACCORDING TO MR KERR

BUT MR KERR OPERATES FROM THE LOUISVILLE KY OFFICE OF PREFERRED
RESTAURANTS INC WHICH HE SAYS IS THE MANAGEMENT COMPANY FOR THREE
FASTFOOD FRANCHISERS PIZZA CHEF CORP BLAZERS FRANCHISE DEVELOPMENT CORP
AND SALSA'S FRANCHISE DEVELOPMENT CORP

FRANCHISEES AND MR RIFFEL SAY WINNER'S CIRCLE OFFICIALS BOASTED ABOUT THEIR
INVOLVEMENT IN THE LITTLEKNOWN PIZZA CHEF GOURMET PIZZA BLAZERS
ALLAMERICAN BARBECUE AND SALSA'S GOURMET MEXICAN CUISINE FRANCHISE FORMATS
THEY WERE USING NUMBERS RELATING TO THESE OTHER FRANCHISES TO ESTABLISH
CREDIBILITY IN OFFERING A NEW FRANCHISE CONCEPT SAYS DANIEL E VAN
VOORHIS A WINNER'S CIRCLE FRANCHISEE IN SPRINGFIELD OHIO IN HINDSIGHT
MR VAN VOORHIS AND OTHERS SAY THAT THEY SHOULD HAVE PAID MORE ATTENTION TO
THE FRANCHISER'S LACK OF EXPERIENCE AT RUNNING WINNER'S CIRCLE

NOT ALL WINNER'S CIRCLE FRANCHISEES ARE UNHAPPY THOUGH WE'VE DONE REAL
WELL SAYS ROBERT S ESPOSITO IN GLENDALE ARIZ WHEN WINNER'S CIRCLE
FAILED TO DELIVER THE EXPECTED LEVELS OF INVENTORY HE SAYS I GOT SMART
FAST AND FOUND OUT WHERE TO GET THINGS

RODNEY J SAPP WITH TWO STORES IN CINCINNATI AND DAYTON OHIO SAYS WE
THOUGHT THERE WOULD BE ONE CENTRAL PLACE TO GET PRODUCTS THAT HASN'T
HAPPENED STILL I'M A HAPPY CAMPER MR SAPP CONTINUES EXPLAINING THAT
THE WINNER'S CIRCLE BUSINESS CONCEPT IS JUST GREAT

THE COMPANY SAYS IT HAS SOLD 20 FRANCHISES SO FAR WITH EIGHT UNITS NOW
OPEN IT AIMS FOR 50 OPEN UNITS BY YEAR END ADDS MR KERR EVERY DAY WE
ARE GETTING STRONGER AND STRONGER 9401210132 940121 PRICOR HOLDERS CLEAR
NAME SHIFT

MURFREESBORO TENN PRICOR INC'S SHAREHOLDERS APPROVED A PROPOSAL TO
CHANGE THE COMPANY'S NAME TO CHILDREN'S COMPREHENSIVE SERVICES INC
EFFECTIVE FEB 15

THE COMPANY SAID ITS NASDAQ NATIONAL MARKET SYSTEM STOCK SYMBOL WILL BE
CHANGED TO KIDS ALSO EFFECTIVE FEB 15 9401210131 940121 INTERNATIONAL
 WORLD WIRE  COMPILED BY RICHARD L HOLMAN

CHINA'S 1993 CRIME RATE GREW 62 THE SAME ANNUAL PACE SINCE 1982 BUT THE
GOVERNMENT CITED THE ECONOMIC BOOM FOR A 23 INCREASE IN THE NUMBER OF
SERIOUS CRIMES REPORTED

MURDERS INCREASED 78 TO 32000 POLICE SAID THEY CRACKED 19000
DRUGTRAFFICKING CASES UP 32 FROM 1992 THEFTS AND ROBBERIES INCREASED 20
TO 450000 AUTHORITIES SAID THEY DETAINED 780000 GANG MEMBERS UP 56

MEANWHILE IN SHANGHAI 90000 BICYCLES WERE REPORTED STOLEN LAST YEAR
CHINESE REFER TO THEIR COUNTRY AS THE KINGDOM OF BICYCLES SHANGHAI ALONE
HAS SEVEN MILLION BIKES ONE FOR EVERY TWO PEOPLE

SEPARATELY CHINA'S INDUSTRIAL OUTPUT IN DECEMBER SURGED A RECORD 35 TO
4616 BILLION FROM THE YEAREARLIER MONTH REFLECTING BEIJING'S RELAXATION
OF CURBS ON LOANS TO STATE COMPANIES THAT HAD FORCED THEM TO LAY OFF WORKERS
FOR LACK OF OPERATING FUNDS

KAZAKHSTAN WAS ACCEPTED FOR MEMBERSHIP IN THE ASIAN DEVELOPMENT BANK WHICH
SAID IT WOULD TREAT THE FORMER SOVIET REPUBLIC AS A TEST ECONOMY IN MOVING
AWAY FROM STATE CONTROL THE BANK BASED IN MANILA SAID IT INTENDED TO HELP
THE CENTRAL ASIAN COUNTRY MAKE A GRADUAL BUT SMOOTH TRANSITION TO A
MARKETORIENTED ECONOMY BY RESTRUCTURING STATE ENTERPRISES SUPPORTING THE
PRIVATE SECTOR AND ATTRACTING FOREIGN INVESTMENT

HUNGARY'S HEALTH AGENCY SIGNED A JOINTVENTURE AGREEMENT WITH A US
PHYSICIAN'S FLORIDA CONCERN TO SET UP THE COUNTRY'S FIRST PRIVATE
FORPROFIT HOSPITAL THE HUNGARIANBORN DR STEPHAN J WITTMANN AN
ANESTHETIST SAID THE 150BED HOSPITAL TO BE OPENED BY 1996 WILL COST
BETWEEN 40 MILLION AND 75 MILLION THE GOVERNMENT DONATED THE LAND AT A
FORMER SOVIET ARMY BASE IN SZENTENDRE A DOZEN MILES NORTH OF BUDAPEST THE
HOSPITAL WITH MANAGEMENT NURSES AND EQUIPMENT TO BE IMPORTED FROM THE
US IS TO SERVE ABOUT 200000 HUNGARIANS WHO CAN AFFORD PRIVATE HEALTH
CARE IN A COUNTRY WHERE MOST MEDICAL TREATMENT IS PROVIDED BY THE STATE

A BRITISH INVESTIGATION OF THE WORLD'S 12THWORST TANKER SPILL BLAMED THE
SHIP'S CAPTAIN FOR THE ACCIDENT IN THE SHETLAND ISLANDS THE BRAER SPILLED
246 MILLION GALLONS OF OIL AFTER RUNNING AGROUND IN A SEVERE STORM ON JAN
4 1993 THE REPORT SAID THE GREEK CAPTAIN ALEXANDROS GELIS WAS DERELICT
FOR FAILING TO PREVENT LOOSE STEEL PIPES FROM CAUSING DAMAGE THAT ALLOWED
SEA WATER TO CONTAMINATE THE FUEL SUPPLY OF THE LIBERIANREGISTERED TANKER
THE MAIN ENGINE AND GENERATOR FAILED AND THE CREW ABANDONED SHIP WHICH WAS
DRIVEN ASHORE BY HURRICANEFORCE WINDS

ITALY RATIFIED AN INTERNATIONAL CONVENTION ON MONEY LAUNDERING
PARTICIPATING NATIONS ALLOW CONFISCATION OF PROFITS OR GOODS GAINED FROM
CRIMINAL ACTIVITY LIFT BANKING SECRECY FOR INQUIRIES SHARE POLICE
INFORMATION AND ADOPT COMMON INVESTIGATING TECHNIQUES THE ACCORD TO TAKE
EFFECT MAY 1 IN ITALY IS IN FORCE IN BRITAIN BULGARIA THE NETHERLANDS AND
SWITZERLAND RATIFICATION IS PENDING BY 15 OTHER NATIONS THAT HAVE SIGNED
THE ACCORD

FINNISH OPPOSITION TO JOINING THE EUROPEAN UNION SHRANK SIGNIFICANTLY IN THE
PAST MONTH AN OPINION SAMPLING BY THE HELSINGIN SANOMAT NEWSPAPER FOUND IN
A GALLUP POLL 41 OF THE RESPONDENTS FAVORED FINLAND'S MEMBERSHIP IN THE
FORMER EUROPEAN COMMUNITY AND 27 OPPOSED IT IN DECEMBER A SIMILAR POLL
FOUND 40 FOR AND 43 AGAINST THE EU APPLICATION THOSE WHO WERE UNDECIDED
INCREASED TO 32 FROM 17 FINNS WILL VOTE ON EU MEMBERSHIP LATER THIS YEAR
THE GOVERNMENT APPLIED TO JOIN IN 1992 AND HOPES TO BE ACCEPTED BY 1995

THE FRENCH FASHION HOUSE CHANEL APOLOGIZED TO THE MUSLIM WORLD SAYING IT
UNWITTINGLY PUT VERSES OF THE KORAN ON DRESSES SHOWN IN ITS SUMMER
COLLECTIONS

IN THE PARIS SHOW LAST WEEKEND ARABIC WORDS WERE EMBROIDERED IN PEARLS ON A
TORSOHUGGING BUSTIER AND OTHER DRESSES CHANEL DESIGNER KARL LAGERFELD
WHOSE CLIENTELE INCLUDES ARABS SAID HE TOOK THE DESIGN FROM A BOOK ON
INDIA'S TAJ MAHAL PALACE A GERMAN MR LAGERFELD SAID HE FOUND THE DESIGN
AESTHETICALLY PLEASING AND WASN'T AWARE OF ITS MEANING

AFTER A MUSLIM GROUP IN JAKARTA PROTESTED CHANEL SAID IT DESTROYED THE
DRESSES WITH THE OFFENDING DESIGNS ALONG WITH NEGATIVES OF THE PHOTOS MADE
OF THE GARMENTS IT ALSO APPEALED TO PRESS PHOTOGRAPHERS AND TELEVISION
CREWS TO DO LIKEWISE

CHANEL DENIED THAT IT FEARED REPRISALS FROM MUSLIMS FOR DESECRATING THE
KORAN THE SACRED BOOK OF ISLAM IN 1989 IRAN'S REVOLUTIONARY ISLAMIC
LEADER THE LATE AYATOLLAH RUHOLLAH KHOMEINI ORDERED THE DEATH OF THE
BRITISH WRITER SALMAN RUSHDIE FOR HIS NOVEL THE SATANIC VERSES CONSIDERED
BLASPHEMOUS BY MANY MUSLIMS

RUSSIAN COAL OUTPUT LAST YEAR DECREASED 98 TO 305 MILLION METRIC TONS FROM
A YEAR EARLIER AND EXPORTS TO COUNTRIES OUTSIDE THE FORMER SOVIET UNION
DROPPED 53 TO 18 MILLION TONS  TO SHED ITS WARRING PAST AND BUILD
ITS TOURISM APPEAL CAMBODIA NEXT MONTH WILL STAGE EVENTS SUCH AS A PEDICAB
RACE AND PERFORMANCES OF TRADITIONAL DANCES AND SONGS OTHER PLANNED
ATTRACTIONS INCLUDE MEKONG RIVER BOAT RACES AND A MARATHON NEAR THE ANCIENT
TEMPLES OF ANGKOR WAT 9401210130 940121 HEARD ON THE STREET DOW'S
LASTMINUTE MOVES IN A TRADING DAY SHOW EARLY BIRDS MIGHT LOSE ON WALL
STREET  BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK BASED ON THE STOCK MARKET'S RECENT BEHAVIOR MAYBE WALL STREET
TRADERS SHOULDN'T EVEN BOTHER SHOWING UP FOR WORK UNTIL 350 PM

MORE THAN EVER THE DOW JONES INDUSTRIAL AVERAGE HAS CARVED OUT A PATTERN OF
REGISTERING ITS GAINS IN THE FINAL MINUTES OF EACH TRADING DAY
LATEAFTERNOON INSTITUTIONAL BUY ORDERS DESCENDING ON THE MARKET IN WAVES
HAVE MADE IT ROUTINE FOR THE DOW JONES AVERAGE TO SPURT JUST BEFORE THE 4
PM CLOSE BY ONE CALCULATION SINCE LAST MAY AN AVERAGE 47 OF THE DOW'S
DAILY MOVEMENT MOSTLY UPWARD MOVEMENT OF LATE HAS OCCURRED IN THE LAST
10 MINUTES

IT'S LIKE CLOCKWORK SAYS ROBERT EXLER EQUITY TRADER AT CLOVER CAPITAL
MANAGEMENT IN PITTSFORD NY I DON'T KNOW WHO IT IS OR WHAT IT IS BUT
THERE'S DEFINITELY A PATTERN TO IT HE SAYS IT REMINDS HIM OF THE TYPICAL
NBA PROBASKETBALL GAME WHERE THE LAST TWO MINUTES IS ALL THAT MATTERS
THAT'S WHEN THE GAME IS DECIDED

INTRIGUED BY THE DOW'S LATEDAY MOVEMENTS MR EXLER STARTED KEEPING A
COMPUTER RECORD LAST MAY 24 THAT TRACKED WHAT THE DOW DID FROM 350 PM ON
AMONG THE EYEOPENING FINDINGS THE LAST 10 MINUTES OF TRADING ACCOUNTED FOR
89 OF THE DOW'S OVERALL GAINS IN OTHER WORDS FROM MAY 24 TO YEAREND 261
POINTS WERE GAINED ON THE DOW AND A NET 233 OF THEM COUNTING BOTH GAINS
AND LOSSES WERE REAPED IN THE 10 MINUTES BEFORE THE CLOSING BELL

IN MIDDECEMBER THERE WERE SEVEN DAYS IN A ROW IN WHICH THE DOW SPURTED
UPWARD JUST BEFORE THE CLOSE THE STATISTICAL PROBABILITY OF THAT HAPPENING
IS PRETTY SLIM SAYS PROF ROBERT WOOD OF MEMPHIS STATE UNIVERSITY WHO HAS
STUDIED HOW STOCKS BEHAVE IN THE LAST MINUTES OF A TRADING DAY STUDIES HAVE
SHOWN THAT THE FINAL TRADES OF A DAY TYPICALLY OCCUR ON AN UPTICK ADDS
PROF WOOD BUT NOT NECESSARILY TO THE EXTENT IT HAS BEEN HAPPENING IN
RECENT MONTHS

A NEW YORK STOCK EXCHANGE SPOKESMAN SAYS WE ALWAYS MONITOR FOR UNUSUAL
TRADING ACTIVITY BUT WE CAN'T COMMENT ON SPECIFIC SITUATIONS

I THINK SOMETHING VERY STRANGE IS GOING ON HERE MOANS ONE BEARISH WALL
STREET TRADER HE CLAIMS THAT MUTUAL FUNDS AND OTHER INSTITUTIONAL TRADERS
ARE WAVING THE MARKET THROUGH WAVES OF LASTMINUTE STOCK BUYING HE AND
OTHER BEARS CLAIM IT'S ANOTHER REASON THE MARKET ISN'T REALLY AS STRONG AS
IT SEEMS AFTER ALL THE NUMBER OF DECLINING BIG BOARD ISSUES OFTEN
OUTNUMBERS ADVANCERS EVEN WHEN THE DOW CLOSES HIGHER

WHY IS THE DOW ABLE TO JUMP SO MUCH LATE IN THE DAY

A COMBINATION OF REASONS INCLUDING PROGRAM TRADING WHICH HAS RETURNED TO
RECORD LEVELS AND THE POWER OF MUTUAL FUNDS SAY TRADERS

SOME OF THE BUYING OBSERVES ONE BIG BOARD BROKER IS FROM INSTITUTIONS
THROWING IN THE TOWEL TO OWN ECONOMYSENSITIVE CYCLICALS AND DOW STOCKS
SUCH AS GENERAL MOTORS AND CATERPILLAR WHEN COMPUTERASSISTED MULTISTOCK
PROGRAM TRADES HIT THE MARKET LATE IN THE DAY AND THE DOW TICKS UPWARD THE
INSTITUTIONAL ORDERS BEGIN BEING FILLED AND THE RISE SNOWBALLS THERE'S
JUST SO MANY PROFESSIONALS IN THE MARKET RIGHT NOW THEY'RE ABLE TO MOVE THE
MARKET A LOT MORE THAN IN THE PAST THE BROKER SAYS

DUDLEY EPPEL HEAD OF STOCK TRADING AT DONALDSON LUFKIN & JENRETTE SAYS
THE TENDENCY IS FOR THE MARKET TO THIN OUT NEAR THE CLOSE ALLOWING
PROGRAM TRADES TO MUSCLE PRICES

THIS DOESN'T MEAN THAT PROGRAM TRADING HAS BEEN NOTHING BUT A
LATEINTHEDAY SAVIOR FOR STOCK PRICES ON THE CONTRARY PROGRAM TRADING
DEPRESSES STOCK PRICES DURING OTHER PARTS OF THE DAY ACCORDING TO BIRINYI
ASSOCIATES A GREENWICH CONN STOCKMARKET RESEARCH FIRM PROGRAM TRADING
ACCOUNTED FOR 51 OF THE DOW'S GAINS FOR ALL OF 1993 OR JUST 23 POINTS OF
THE 45298 TOTAL THAT MEANS THERE ARE MANY DAYS IN WHICH PROGRAM TRADING
TUGS THE MARKET UP AND DOWN BEFORE GIVING THE DOW A FINAL MODEST YANK
UPWARD IN THE CLOSING MINUTES

THE LESSON FOR INVESTORS CLOVER CAPITAL'S MR EXLER SAYS IF YOU'RE OUT
THERE SELLING IN THE AFTERNOON YOU'RE MUCH BETTER OFF WAITING FOR THE
LAST 10 MINUTES OR EVEN THE NEXT MORNING YOU'LL PROBABLY GET A HIGHER
PRICE

GIANT STUBS TOE FIDELITY MAGELLAN FUND BY FAR THE NATION'S LARGEST MUTUAL
FUND DIPPED 03 IN THE FOURTH QUARTER

IT WAS THE FIRST QUARTERLY DECLINE UNDER JEFF VINIK WHO TOOK OVER THE FUND
IN MID1992 I HAD THREE GREAT QUARTERS AND ONE TERRIBLE QUARTER SAYS MR
VINIK ADDING THAT ONE YEAR IS THE SHORTEST PERIOD OVER WHICH IT'S FAIR TO
JUDGE A FUND FOR THE YEAR MAGELLAN ROSE 247 MORE THAN DOUBLE THE GAIN
IN THE S&P 500

MR VINIK HAS BOLDLY LOADED THE 31 BILLION FUND WITH ENERGY PARTICULARLY
NATURAL GAS STOCKS AND SEMICONDUCTOR STOCKS AND STRIPPED AWAY ALMOST ALL
FOOD BEVERAGE TOBACCO AND DRUG STOCKS THE STRATEGY WORKED GREAT FOR THE
FIRST NINE MONTHS AND IN DECEMBER BUT IT BACKFIRED IN OCTOBER AND NOVEMBER
MR VINIK SAYS HE PLANS TO STICK TO THE SAME STRATEGY IN 1994

THEY DID BADLY IN THE QUARTER FOR THE SAME REASON THEY HAD A GREAT YEAR 
BECAUSE JEFF VINIK HAS THE COURAGE TO BE DIFFERENT FROM THE MARKET SAYS
DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS IN CHICAGO

JOHN R DORFMAN CONTRIBUTED TO THIS ARTICLE 9401210129 940121 BOC TO POST
CHARGE FOR THIS FISCAL YEAR CUT ABOUT 1700 JOBS

LONDON UNITED KINGDOM CHEMICALS CONCERN BOC GROUP PLC SAID IT WILL MAKE
AN 85MILLION 1269 MILLION PROVISION FOR THE YEAR ENDING SEPT 30
1994

BOC ADDED THAT SOME 1700 JOBS WILL BE LOST IT DIDN'T SAY WHEN THESE CUTS
WOULD TAKE PLACE

COMMENTING ON THE RESTRUCTURING PLANS COMPANY CHIEF EXECUTIVE OFFICER PAT
DYER TOLD THE ANNUAL MEETING IN EFFECT THIS IS SPENDING MONEY TO SAVE
MONEY A ONETIME COST TO ACHIEVE CONSIDERABLE SAVINGS YEAR AFTER YEAR
INTO THE FUTURE THE COMPANY SAID THE PAYBACK ON THE PROVISION WILL BEGIN
IN THE CURRENT YEAR AND WITHIN THREE YEARS WILL LEAD TO SAVINGS OF ALMOST
60 MILLION A YEAR

BOC SAID CURRENT BUSINESS WAS IN LINE WITH EXPECTATIONS BUT THAT SIGNS OF
ECONOMIC IMPROVEMENT ARE LIMITED

BOC SAID PROFITS IN HEALTH CARE WOULD CONTINUE TO BE DEPRESSED BY THE EFFECT
OF GENERIC COMPETITION FOR ITS FORANE ANAESTHETIC IN THE US BUT THAT ITS
REPLACEMENT DRUG SUPRANE WAS PROGRESSING WELL

BOC ALSO SAID THAT PATRICK RICH PLANS TO STEP DOWN FROM HIS POST OF CHAIRMAN
AT THE BEGINING OF APRIL SHORTLY AFTER HIS 63RD BIRTHDAY PARTLY BECAUSE OF
HEALTH REASONS THE BOARD EXPECTS TO MAKE A DECISION ON A SUCCESSOR SOON

MR RICH WHO HAS WORKED FOR BOC FOR 11 YEARS HAD BEEN CHAIRMAN AND CHIEF
EXECUTIVE UNTIL LATE LAST YEAR WHEN THE ROLES WERE SPLIT AND PAT DYER WAS
NAMED TO THE CHIEF EXECUTIVE SPOT 9401210128 940121 BIASCASE PACTS SET 
BY SOUTH DAKOTA MISSISSIPPI BANKS  BY JOE DAVIDSON STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON BANKS IN SOUTH DAKOTA AND MISSISSIPPI HAVE AGREED TO SETTLE
FEDERAL CHARGES THAT THEY DISCRIMINATED AGAINST MINORITIES WHEN MAKING
HOUSING LOANS

FIRST NATIONAL BANK OF VICKSBURG MISS HAS AGREED TO AN 800000
SETTLEMENT OF CHARGES IT DISCRIMINATED AGAINST BLACK BORROWERS BY
OVERCHARGING THEM ON INTERESTS RATES FEDERAL OFFICIALS SAID OF THAT
AMOUNT 750000 GOES TOWARD COMPENSATING ABOUT 170 AFRICAN AMERICANS WHO
ALLEGEDLY WERE CHARGED HIGHER RATES THAN WHITES FOR UNSECURED LOANS A
50000 FINE WILL BE PAID TO THE GOVERNMENT

THE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG SAID THAT IN 1992 FIRST
NATIONAL CHARGED 97 OF 61 BLACK BORROWERS INTEREST RATES THAT WERE FIVE
PERCENTAGE POINTS ON AVERAGE HIGHER THAN WHITES

FROM A STATISTICAL PERSPECTIVE HE ADDED IT IS ONE CHANCE IN A MILLION
LITERALLY ONE CHANCE IN A MILLION THAT THESE STATISTICS CAN BE EXPLAINED
OTHER THAN DIFFERENTIATION BY RACE

BLACKPIPE STATE BANK IN MARTIN SD WILL SET ASIDE 125000 TO COMPENSATE
VICTIMS OF ALLEGED UNFAIR LENDING PRACTICES JUSTICE DEPARTMENT AND BANK
OFFICIALS SAID SOME NATIVE AMERICANS WILL HAVE THEIR INTEREST RATES
LOWERED IF THE COMPENSATION DOESN'T REQUIRE THE FULL 125000 THEN AS MUCH
AS 50000 WILL BE PAID TO THE GOVERNMENT AS A FINE ACCORDING TO PAUL
HANCOCK CHIEF OF THE HOUSING SECTION IN THE JUSTICE DEPARTMENT'S
CIVILRIGHTS DIVISION IN NOVEMBER THE JUSTICE DEPARTMENT FILED SUIT
ALLEGING THAT BLACKPIPE REFUSED TO MAKE LOANS ON NATIVE AMERICAN
RESERVATIONS AND SET CREDIT REQUIREMENTS THAT DIDN'T APPLY TO WHITES

NO BANK OFFICERS ARE NAMED IN THE SUITS MR HANCOCK SAID THE SETTLEMENTS
REQUIRE THE BANKS TO PROVIDE MORTGAGE LOANS WITHOUT DISCRIMINATION AND CALL
ON THEM TO TRAIN EMPLOYEES NOT TO DISCRIMINATE THE BANKS ADMITTED NO
WRONGDOING AND HAD NO COMMENT ON THE CHARGES

MR LUDWIG AND ATTORNEY GENERAL JANET RENO PLANNED TO ANNOUNCE THE
SETTLEMENTS TODAY

WHEN MS RENO ANNOUNCED THE SUIT AGAINST BLACKPIPE IN NOVEMBER SHE SAID
IN MANY CASES DISCRIMINATION HAS BECOME SO INSTITUTIONALIZED AND SUBTLE
THAT MANY VICTIMS DON'T KNOW HOW TO ATTACK IT OR THAT IT'S EVEN HAPPENING TO
THEM  ALTHOUGH DISCRIMINATION MAY BE ACCEPTED AS COMMONPLACE BY SOME
IT IS ILLEGAL BY ALL 9401210127 940121 BUSINESS BRIEF POPE & TALBOT
INC NET IN 4TH QUARTER ROSE 61 PROFIT IS POSTED FOR FULL YEAR

POPE & TALBOT INC REPORTED A 61 JUMP IN FOURTHQUARTER NET INCOME AND A
RETURN TO PROFITABILITY FOR 1993 AND CHAIRMAN PETER POPE SAID IMPROVEMENTS
IN PULP AND PAPER SEGMENTS SHOULD DRIVE EARNINGS HIGHER THIS YEAR

THE PORTLAND ORE FORESTPRODUCTS CONCERN POSTED FOURTHQUARTER EARNINGS
OF 46 MILLION OR 39 CENTS A SHARE COMPARED WITH A YEAREARLIER NET OF
28 MILLION OR 25 CENTS A SHARE SALES ROSE 11 TO 1592 MILLION FROM
1439 MILLION

FOR THE YEAR THE COMPANY HAD NET INCOME OF 21 MILLION OR 180 A SHARE
COMPARED WITH A YEAREARLIER NET LOSS OF 23 MILLION OR 19 CENTS A SHARE
SALES WERE 6289 MILLION UP 16 FROM A YEAREARLIER 5443 MILLION

MR POPE CITED STRENGTH IN THE LUMBER AND DISPOSABLEDIAPER BUSINESSES
WHICH HE SAID SHOULD CONTINUE AND HE PREDICTED BETTER RESULTS IN THE
STILLWEAK TISSUE AND PULP SEGMENTS 9401210126 940121 PROGRAM TRADING

NEW YORK PROGRAM TRADING IN THE WEEK ENDED JAN 14 ACCOUNTED FOR 91 OR
AN AVERAGE 277 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME

BROKERAGE FIRMS EXECUTED AN ADDITIONAL 123 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 335 INVOLVED STOCKINDEX ARBITRAGE
UP FROM 215 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS
AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES

SOME 544 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS
OR PRINCIPAL TRADING WHILE 424 WAS FOR THEIR CUSTOMERS AN ADDITIONAL
32 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL
POSITIONS TO FACILITATE CUSTOMER TRADES

OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES COOPER NEFF AND
SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN
ACCOUNTS WHILE MORGAN STANLEY AND BEAR STEARNS DID MOST OF THEIR TRADING
FOR THEIR CUSTOMERS 9401210125 940121 ADVERTISING NBC SPECIAL IS ONE
LONG PRIMETIME AD  BY LAURA BIRD STAFF REPORTER OF THE WALL
STREET JOURNAL

FANTASY AND REALITY QUICKLY BLUR IN TREASURE ISLAND THE ADVENTURE BEGINS 
  SAY THE PROMOTIONAL MATERIALS FOR A SPECIAL TO BE BROADCAST SUNDAY ON
THE NBC NETWORK

SO DO ADVERTISING AND ENTERTAINMENT

THE PRIMETIME SHOW CHRONICLES A BOY'S VACATION AT TREASURE ISLAND THE NEW
PIRATETHEMED LAS VEGAS RESORT AND CASINO OWNED BY MIRAGE RESORTS YOUNG
ROBBIE AND HIS FATHER SWORDFIGHT WITH SWASHBUCKLERS AND SEARCH FOR BURIED
TREASURE

STEPHEN A WYNN CHAIRMAN AND CHIEF EXECUTIVE OF MIRAGE IS AN EXECUTIVE
PRODUCER OF THE TREASURE ISLAND SPECIAL MIRAGE PURCHASED THE ONEHOUR
TIME SLOT AS ADVERTISING FROM NBC A UNIT OF GENERAL ELECTRIC CO NBC SAYS
IT WASN'T INVOLVED IN THE SHOW'S CONTENTS OTHER THAN A REVIEW BY ITS
STANDARDS AND PRACTICES DEPARTMENT

NBC AND MIRAGE DECLINE TO COMMENT ON THE PRICE BUT EXECUTIVES ESTIMATE IT
TO BE ABOUT 17 MILLION COCACOLA CO HAS BOUGHT FOUR MINUTES OF AD TIME
IN THE SHOW FROM THE CASINO RESORT OPERATOR SAID A MIRAGE SPOKESMAN AND
MIRAGE DONATED ANOTHER TWO MINUTES TO THE LAS VEGAS VISITOR AND CONVENTION
AUTHORITY MIRAGE WILL USE THE REMAINING FOUR MINUTES TO RUN COMMERCIALS FOR
ITS TREASURE ISLAND AND MIRAGE CASINO RESORTS

THE HOURLONG SHOW HAS RAISED EYEBROWS IN ADVERTISING AND BROADCASTING
CIRCLES AS THE LATEST AND PERHAPS MOST EXTREME EXAMPLE OF THE MELDING OF
ADVERTISING AND ENTERTAINMENT ADVERTORIALS IN MAGAZINES AND PROGRAMLENGTH
TELEVISION INFOMERCIALS HAVE LONG PUSHED THE LIMITS OF HOW FAR ADVERTISERS
CAN GO TO DISGUISE PITCHES AS INFORMATION AND PRODUCT PLACEMENT IN MOVIES
HAS BECOME A BIG BUSINESS AS MANY PRODUCERS OFFSET EXPENSES BY CRAMMING
BRANDNAME PRODUCTS INTO SCRIPTS

BUT ADVERTISING IS CREEPING INTO ENTERTAINMENT IN EVEN SUBTLER WAYS CRITICS
SAY FOR EXAMPLE NICK AND NOEL TOYS R US'S HALFHOUR HOLIDAY SPECIAL
FEATURED A DOG AND CAT THAT ALSO APPEARED IN A BOOK AND VIDEO SOLD IN THE
COMPANY'S STORES NBC RECENTLY BEGAN A PRIMETIME SERIES CALLED VIPER
WHOSE TITLE CHARACTER IS A CHRYSLER SPORTS CAR

TREASURE ISLAND APPEARS TO GO EVEN FURTHER BECAUSE THE CASINO RESORT IS
THE SHOW'S CENTERPIECE THIS IS REALLY PRETTY BLATANT SAYS KATHRYN
MONTGOMERY PRESIDENT OF THE PUBLICADVOCACY GROUP CENTER FOR MEDIA
EDUCATION IT'S CONSISTENT WITH OTHER HOTEL CHAINS AND VACATION PACKAGES
THAT MAKE THEIR APPEALS TO KIDS SO THEY WILL INFLUENCE THEIR PARENTS

AN NBC SPOKESMAN SAID THE NETWORK PLANS TO AIR A STATEMENT AS PART OF THE
CLOSING CREDITS SAYING THAT THE SHOW HAS BEEN SPONSORED BY TREASURE ISLAND
PRODUCTIONS INC AN NBC SPOKESMAN SAID THE SHOW DOESN'T VIOLATE ANY RULES
THIS ISN'T NEW GROUND HE SAYS IT HAS GONE THROUGH ALL THE SAME CHECKS
AND BALANCES AS A DISNEY SPECIAL WALT DISNEY CO OPERATES THEME PARKS AND
ALSO PRODUCES PROGRAMMING

RULES FOR PLUGGING PRODUCTS ON TELEVISION ARE SOMEWHAT MURKY BUT WHEN
ADVERTISERS PROVIDE MONEY OR OTHER CONSIDERATION TO A SHOW'S PRODUCERS IN
EXCHANGE FOR EXPOSURE THE RELATIONSHIP IS SUPPOSED TO BE DISCLOSED TO
VIEWERS

TREASURE ISLAND ALSO IS THE EXCEPTION TO THE LONGSTANDING PROHIBITION ON
RUNNING ADS FOR A PRODUCT DURING A SHOW FEATURING THE PRODUCT CHRYSLER
WHICH SAYS ITS ONLY INVOLVEMENT IN VIPER IS TO PROVIDE CARS FOR THE
SERIES WON'T BE ADVERTISING ANY OF ITS MODELS DURING THE SHOW

THE MIRAGE SAYS TREASURE ISLAND ISN'T MEANT TO DRIVE UP NEARTERM SALES
DOES IT CARRY WITH IT PROMOTIONAL VALUE OF COURSE IT DOES SAYS THE
MIRAGE SPOKESMAN BUT MORE IN AN IMAGE SENSE THAN IN A DIRECT ADVERTISING
SENSE I THINK PEOPLE WILL WATCH IT AND ENJOY IT AND ALONG THE WAY THEY'LL
HAVE HEARD OF A HOTEL CALLED TREASURE ISLAND

LAST YEAR HOWEVER BOOKINGS SKYROCKETED AT THE PLAZA HOTEL IN MANHATTAN
AFTER HOME ALONE 2 LOST IN NEW YORK DOCUMENTED MACAULAY CULKIN'S
ADVENTURES THERE THE PLAZA SAYS IT DIDN'T PAY FOR ITS APPEARANCE IN HOME
ALONE 2

IT'S THE SUBTLETY OF PROGRAMS LIKE TREASURE ISLAND THAT DISTURBS CRITICS
LIKE DR MONTGOMERY WE ALREADY KNOW THAT KIDS DON'T KNOW THE DIFFERENCE
BETWEEN COMMERCIALS AND PROGRAMMING SHE SAYS THIS IS DESIGNED TO LOOK
LIKE A PROGRAM IT'S DESIGNED TO CONFUSE

THE MIRAGE SPOKESMAN SAID THE IDEA FOR TREASURE ISLAND BEGAN WITH PLANS TO
IMPLODE THE DUNES HOTEL AS PART OF THE OPENING OF THE TREASURE ISLAND RESORT
LAST OCTOBER LET'S FACE IT IT SEEMED LIKE A PRETTY GOOD PUBLICITY STUNT
THE SPOKESMAN SAID EFFORTS TO INCLUDE THE DEMOLITION IN A MAJOR MOTION
PICTURE DIDN'T PAN OUT SO MR WYNN TURNED TO MICHAEL OVITZ AND HIS
HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY TO HELP DEVELOP A PROJECT
HIGHLIGHTING THE DUNES DEMOLITION

THE IMPLOSION OF THE DUNES IS THE CLIMAX OF THE TREASURE ISLAND SPECIAL
MIRAGE HIRED FINNEGANPINCHUK CO A VETERAN TELEVISION PRODUCTION COMPANY
15 PRINCIPAL ACTORS AND THE LONDON SYMPHONY ORCHESTRA TO RECORD THE SCORE
FOR THE SHOW

MIRAGE SAYS IT WILL CONSIDER THE VENTURE A SUCCESS IF IT CAN MATCH THE
RATINGS OF SEAQUEST DSV THE STEVEN SPIELBERG SERIES THAT IT PREEMPTS
ACCORDING TO AC NIELSEN SEAQUEST HAS ATTRACTED AN AVERAGE AUDIENCE OF
104 MILLION VIEWERS

BUT MARKETING EXPERTS QUESTION WHETHER THAT'S A BIG ENOUGH AUDIENCE TO
JUSTIFY THE COST OF MAKING THE TREASURE ISLAND SPECIAL NO COST ESTIMATES
WERE AVAILABLE THIS IS NOT THE SUPER BOWL OR THE ACADEMY AWARDS SAYS
CHARLES LISBERGER PRESIDENT OF COURTLEMAGNE COMMUNICATIONS A LOS ANGELES
FIRM THAT SPECIALIZES IN TELEVISION AND FILM PLACEMENTS FOR THE TRAVEL
INDUSTRY THERE IS NO GUARANTEED AUDIENCE THEY ARE ROLLING THE DICE THAT
THEY HAVE CAST IT RIGHT AND FOUND THE RIGHT DIRECTOR AND ENSURED THE RIGHT
AUDIENCE IF THEY GUESS WRONG THEY WILL HAVE MADE A MAJOR MISTAKE

AD NOTES  GENERAL MEDIA INTERNATIONAL ACCOUNT GENERAL MEDIA PUBLISHES
MAGAZINES INCLUDING PENTHOUSE LONGEVITY AND OMNI A MULTIMILLION DOLLAR
CAMPAIGN FOR PENTHOUSE STARTS NEXT MONTH 9401210124 940121 WHO'S NEWS 
MANAGEMENT UPHEAVAL AT CIRCUS CIRCUS CONTINUES WITH THE DEPARTURE OF
PAULOS  BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET
JOURNAL

CIRCUS CIRCUS ENTERPRISES INC'S MANAGEMENT UPHEAVAL CONTINUED WITH THE
RESIGNATION OF WILLIAM J PAULOS THE HIGHPROFILE CASINO EXECUTIVE WHO
OVERSAW THE OPENING OF THE LAS VEGAS COMPANY'S NEW 390 MILLION LUXOR
RESORT

MR PAULOS 46 YEARS OLD SAID HE WILL BECOME CHIEF OPERATING OFFICER FOR
CROWN CASINO LTD AN AUSTRALIAN COMPANY THAT HOLDS THE RIGHT TO BUILD THE
FIRST CASINO IN MELBOURNE JOHN O'LOONEY LUXOR'S CASINO MANAGER WAS NAMED
TO SUCCEED MR PAULOS AS THE TOP OPERATING EXECUTIVE AT THE NEW RESORT AND
THE CORPORATE SENIOR VICE PRESIDENT'S POSITION REMAINS UNFILLED

INVESTORS UNNERVED BY THE DEPARTURE OF ANOTHER OF THE COMPANY'S KEY
EXECUTIVES PUSHED CIRCUS SHARES DOWN 225 OR 58 TO 36875 IN NEW YORK
STOCK EXCHANGE COMPOSITE TRADING

ALSO CIRCUS SAID KURT SULLIVAN WHO WAS NAMED GENERAL MANAGER OF THE CIRCUS
CIRCUS LAS VEGAS LAST OCTOBER WAS NAMED THE COMPANY'S DIRECTOR OF
OPERATIONS OVERSEEING ALL EIGHT OF THE COMPANY'S CASINOS

SEVERAL ANALYSTS NOTED THAT MR PAULOS'S DEPARTURE IS THE LATEST IN A STRING
OF EXECUTIVE DEPARTURES AT THE CASINO COMPANY IN LESS THAN A YEAR AND
UNDERSCORES CONCERN OVER THE COMPANY'S ABILITY TO MANAGE THE AGGRESSIVE
GROWTH PLAN IT HAS MAPPED OUT

LAST FEBRUARY GLENN W SCHAEFFER RESIGNED AS PRESIDENT CHIEF FINANCIAL
OFFICER AND A DIRECTOR FOLLOWING A CLASH WITH WILLIAM G BENNETT CIRCUS'S
STRONGWILLED CHAIRMAN MR SCHAEFFER HAD BEEN GROOMED TO SUCCEED MR
BENNETT WHO HAS LONG STATED HIS DESIRE TO RETIRE A MONTH LATER JAMES W
MUIR RESIGNED AS CHIEF OPERATING OFFICER AND A DIRECTOR

IN RECENT YEARS OTHER SENIOR EXECUTIVES HAVE LEFT THE COMPANY ABRUPTLY
THEY INCLUDE RICHARD P BANIS AN EARLIER HEIR APPARENT WHO LEFT THE COMPANY
IN 1991 AS PRESIDENT AND CHIEF OPERATING OFFICER AND MELVIN LARSON AN
EXECUTIVE VICE PRESIDENT AND BOARD MEMBER WHO STEPPED ASIDE THE FOLLOWING
YEAR

IF YOU LOOK AT THE ANNUAL REPORT FROM TWO YEARS AGO THE FOUR SENIOR PEOPLE
UNDER BENNETT ARE GONE SAID DENNIS FORST AN ANALYST WITH HANCOCK
INSTITUTIONAL EQUITY SERVICES LOS ANGELES WHO PULLED HIS BUY
RECOMMENDATION ON THE NEWS

CLYDE TURNER CIRCUS'S PRESIDENT AND MR PAULOS CHARACTERIZED THE DEPARTURE
AS AMICABLE MR PAULOS SAID HIS NEW COMPENSATION PACKAGE WAS VERY VERY
GENEROUS AND SAID MR BENNETT HAD BEEN INCREDIBLY CORDIAL AND WISHED ME
LUCK UPON HEARING OF HIS DECISION

BUT PEOPLE FAMILIAR WITH THE SITUATION NOTED THAT MR PAULOS REPEATEDLY HAD
BEEN PASSED OVER FOR A TOP CORPORATE TITLE DESPITE HAVING PLAYED A KEY ROLE
IN THE OPENING OF EACH OF THE COMPANY'S MAJOR CASINOS IN RECENT YEARS
INCLUDING THE COLORADO BELLE IN LAUGHLIN NEV AND THE MAMMOTH EXCALIBUR
AND LUXOR RESORTS IN LAS VEGAS

MR TURNER SAID THE COMPANY WAS COMFORTABLE WITH ITS MANAGEMENT STRUCTURE
AND WOULD CONSIDER FILLING THE CHIEF OPERATING SLOT AT THE APPROPRIATE
TIME THE POST HAS BEEN VACANT SINCE MR MUIR'S DEPARTURE LAST YEAR
9401210123 940121 LETTERS TO THE EDITOR IMPOVERISHED BY MEDICAL
INSURANCE

ANY STATISTIC ON WHO THE UNINSURED ARE IN THIS COUNTRY RANKS OF UNINSURED
CLIMB DEC 15 FAILS TO ACKNOWLEDGE ANOTHER CATEGORY OF DESPERATE
AMERICANS THOSE WHO ARE BARELY INSURED AND ARE CLOSE TO BECOMING THE
PERMANENTLY UNINSURED HAS ANY NUMBER EVER BEEN PLACED ON THOSE WHO HAVE
LITTLE OR MINIMAL MEDICAL COVERAGE YET ARE CHARGED LARGE PREMIUMS AND EVEN
UNIMAGINABLY LARGER DEDUCTIBLES

MY MOTHER IS CAUGHT IN SUCH A SITUATION A SELFEMPLOYED SEAMSTRESS SHE
OFTEN WORKS 10 HOURS A DAY TO SUPPORT HERSELF AND MY DISABLED FATHER SHE IS
CONDEMNED TO A LIFE OF PREEXISTING CONDITION SYNDROME AN AILMENT THAT
AUTOMATICALLY DENIES HER INSURANCE COVERAGE FROM ANY CARRIER OTHER THAN THE
ONE SHE CURRENTLY HAS

HAVING HAD OPENHEART SURGERY SIX YEARS AGO PREVENTS HER FROM DROPPING A
POLICY THAT IS DRAINING HER AND MY FATHER OF THEIR LIFE SAVINGS AND RAPIDLY
DECREASING THEIR QUALITY OF LIFE IMAGINE PAYING PREMIUMS OF 500 A MONTH
FOR A POLICY THAT HAS A 6000 DEDUCTIBLE NO COVERAGE FOR PRESCRIPTIONS AND
NO PREVENTATIVE CARE BENEFITS ALL THIS AND NO GUARANTEE THAT THE COMPANY
WILL NOT DROP MY MOTHER IF SHE EVER AGAIN NEEDS CARE

MY MOTHER CANNOT AFFORD TO SEE A DENTIST WHICH SHE IS IN DIRE NEED OF AND
CANNOT GET REGULAR MAMMOGRAMS AND OTHER REGULAR EXAMS BECAUSE SHE IS
SCRAPING EACH MONTH TO PAY HER PREMIUM BUT THE MOST HUMILIATING INJUSTICE
HAS BEEN THAT MY MOTHER HAS CEASED TAKING HER HEART MEDICATION BECAUSE SHE
CAN NO LONGER AFFORD IT MORE THAN 100 A MONTH

THE SITUATION IS WORSE THAN STATISTICS CAN EVER PROVE MANY MORE ARE
SUFFERING QUIETLY AND WILL PROBABLY NEVER REAP ANY BENEFITS FROM REFORM THAT
IS MUCH TOO OVERDUE AND STILL SEVERAL YEARS AWAY 9401210122 940121
BUSINESS BRIEF NOBLE AFFILIATES INC CONCERN SEES 4THPERIOD NET AT
OR NEAR BREAKEVEN LEVEL

NOBLE AFFILIATES INC ARDMORE OKLA SAID FOURTHQUARTER CHARGES RELATING
TO ADJUSTMENTS ON SEVERAL FIELDS MEANS THE COMPANY WILL REPORT NET INCOME
FOR THE PERIOD AT OR NEAR A BREAKEVEN LEVEL

IN THE YEAREARLIER QUARTER NOBLE AFFILIATES HAD NET INCOME OF 8 MILLION
OR 18 CENTS A SHARE ON REVENUE OF 768 MILLION

THE INDEPENDENT ENERGY COMPANY SAID IT EXPECTED THAT THE NONCASH CHARGES
WILL BE 117 MILLION THEY INCLUDE A NONCASH PRETAX CHARGE OF 4 MILLION
FROM THE DOWNWARD REVISION OF ABOUT THREE MILLION BARRELS OF PROVED
UNDEVELOPED RESERVES ASSOCIATED WITH THE COMPANY'S INTEREST IN THE SAN
MIGUEL PROSPECT OFFSHORE CALIFORNIA

THE COMPANY ALSO SAID IT IS ADDING 47 MILLION PRETAX TO ITS FOURTHQUARTER
DEPRECIATION DEPLETION AND AMORTIZATION EXPENSE TO REDUCE ITS INVESTMENT IN
THE CAMAR FIELD OFFSHORE INDONESIA BECAUSE OF A RECENT DROP IN DAILY
PRODUCTION 9401210121 940121 INTERNATIONAL ELF TO BEGIN PRIVATIZATION
 FRANCE PLANS TO SELL SHARES  A WALL STREET JOURNAL NEWS ROUNDUP

THE FRENCH GOVERNMENT SAID IT WILL START SHEDDING CONTROL OF OIL GIANT
SOCIETE NATIONALE ELF AQUITAINE WITHIN SEVERAL WEEKS WHEN IT PUTS 6 BILLION
OF THE COMPANY'S STOCK ON THE BLOCK

THE OFFERING WILL ENTAIL 885 MILLION OF ELF'S 257 MILLION SHARES HITTING
GLOBAL MARKETS IN A SERIES OF TRANCHES THE GOVERNMENT WHICH OWNS 51 OF
THE COMPANY EXPECTS TO RETAIN 13 OWNERSHIP

THE OFFERING COMES AT A DIFFICULT TIME FOR THE OIL INDUSTRY WHICH HAS BEEN
ENDURING OIL PRICES AT FIVEYEAR LOWS THE TIMING FOR THE COMPANY ISN'T ANY
BETTER WITH DEBT CONTINUING TO GROW REACHING ALMOST 50 OF EQUITY AT THE
END OF 1993 AND NET INCOME FOR 1993 REPORTED EARLIER THIS WEEK SLIPPED BY
ABOUT 82

THE FRENCH GOVERNMENT HASN'T GIVEN THE EXACT DATE WHEN ELF SHARES WILL GO ON
SALE BUT THE ACTION IS EXPECTED NEXT MONTH

THE GOVERNMENT INTENDS TO PLACE 22 MILLION SHARES WITH A CORE GROUP OF
STABLE INSTITUTIONAL SHAREHOLDERS EXPECTED TO BE MAINLY MAJOR FRENCH
COMPANIES THESE INVESTORS MUST PLEDGE TO HOLD THEIR SHARES FOR SEVERAL
YEARS CREATING A TYPE OF POISON PILL TO PREVENT TAKEOVERS 9401210120
940121 INTERNATIONAL NEW RUSSIAN CABINET UNVEILED AND FYODOROV TURNS
UP MISSING  CHERNOMYRDIN SAYS PUSH TO REFORM ECONOMY CAN'T BE
TURNED BACK  BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET
JOURNAL

MOSCOW RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN UNVEILED HIS NEW
CABINET AND TRIED TO REASSURE THE WORLD THAT HIS REVAMPED LINEUP WILL STICK
TO A POLICY OF FREEMARKET REFORMS

BUT FINANCE MINISTER BORIS FYODOROV'S DECISION TO QUIT THE CABINET AFTER
MUCH SOULSEARCHING IS LIKELY TO WEAKEN THE NEW GOVERNMENT'S REFORMING
ZEAL

AT A NEWS CONFERENCE MR CHERNOMYRDIN GAVE DETAILS OF THE NEW CABINET
ROSTER WHICH WAS WORKED OUT IN PRIVATE TALKS BETWEEN THE PRIME MINISTER AND
RUSSIAN PRESIDENT BORIS YELTSIN THE TWO BELIEVED THAT A RESHUFFLE WAS
NECESSARY FOLLOWING THE POOR SHOWING OF PROREFORM CANDIDATES IN LAST
MONTH'S PARLIAMENTARY ELECTIONS

MR CHERNOMYRDIN A CAUTIOUS FORMER INDUSTRIAL BOSS SELECTED A LIKEMINDED
FORMER APPARATCHIK OLEG SOSKOVETS TO SERVE AS HIS FIRST DEPUTY PREMIER
BELOW MR SOSKOVETS ARE THREE DEPUTY PREMIERS ANATOLY CHUBAIS YURI YAROV
AND ALEXANDER ZAVERYUKHA

THE INCLUSION OF MR CHUBAIS IN THE UPPER ECHELON SHOULD GIVE RUSSIA'S
REFORMERS SOME CAUSE FOR OPTIMISM MR CHUBAIS WILL RETAIN CONTROL OVER
PRIVATIZING RUSSIA'S STATE INDUSTRIES A PROCESS THAT HAS PROCEEDED RAPIDLY
DURING THE PAST TWO YEARS DESPITE STIFF POLITICAL OPPOSITION

BUT MR FYODOROV'S ABSENCE IS LIKELY TO BE FELT STRONGLY THE PRIME MINISTER
OFFERED TO REAPPOINT MR FYODOROV AS FINANCE MINISTER BUT MR FYODOROV SAID
HE WOULD TAKE THE JOB ONLY IF BOTH MR ZAVERYUKHA A FORMER COLLECTIVE FARM
DIRECTOR AND CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO WERE REMOVED FROM
THEIR POSTS WHEN THOSE DEMANDS WEREN'T MET HE QUIT

IN A TELEVISED INTERVIEW LAST NIGHT MR FYODOROV EXPLAINED THAT HE FELT HE
COULDN'T WORK EFFECTIVELY IN THE NEW CABINET ATTEMPTS ARE BEING MADE TO
STOP THE COURSE OF REFORM AND EVEN TO MOVE BACKWARD HE SAID MR FYODOROV
SAID HE DIDN'T WANT TO SERVE IN A GOVERNMENT WHEN ALL MY TIME WILL BE TAKEN
UP STRUGGLING AGAINST GERASHCHENKO OR SOMEBODY ELSE

MR FYODOROV LEAVES AN IMPRESSIVE LEGACY HIS SUPPORTERS CREDIT HIM WITH
HELPING TO END THE DAYS OF CHEAP CREDITS FOR STATE ENTERPRISES MOREOVER HE
WAS AN IMPORTANT PSYCHOLOGICAL FORCE CONSTANTLY REMINDING HIS CABINET
COLLEAGUES THAT BUDGET SPENDING AND INFLATION HAD TO BE CONTROLLED HIS
EFFORTS HELPED BRING INFLATION TO 12 IN DECEMBER FROM 30 A MONTH EARLIER

THE QUESTION NOW IS WHETHER THE CHERNOMYRDIN ADMINISTRATION CAN KEEP A LID
ON CHEAPCREDIT ALLOCATIONS IN MR FYODOROV'S ABSENCE THE BRASH MR
FYODOROV DOESN'T THINK SO HE PREDICTED THAT WITHOUT HIS PRESENCE IN THE
GOVERNMENT INFLATION WILL RISE AGAIN TO 30 A MONTH BY APRIL HE ALSO
PREDICTED THAT THE RUBLE WHICH STRENGTHENED SOMEWHAT THURSDAY TO CLOSE AT
1553 TO THE DOLLAR WILL PLUMMET BY THE END OF THE YEAR TO 12000

MR CHERNOMYRDIN WAS MORE SANGUINE HE PLAYED DOWN THE ROLE OF ANY
INDIVIDUALS IN HIS CABINET SAYING THAT REFORMS WERE IRREVERSIBLE DESPITE
THE LOSS OF TWO KEY REFORMERS THIS WEEK RUSSIA'S REFORM ARCHITECT YEGOR
GAIDAR RESIGNED SUNDAY FROM HIS POSTS OF ECONOMICS MINISTER AND FIRST
DEPUTY PREMIER

MR CHERNOMYRDIN INDICATED OBLIQUELY THE PACE OF REFORM MIGHT BE SLOWED BUT
ALSO OUTLINED SEVERAL POLICIES THAT SHOW A COMMITMENT TO FURTHER REFORM HE
CALLED FOR STIMULATING PRIVATE INVESTMENT AND ENTREPRENEURSHIP AND FOR
CLOSING UNPROFITABLE PRODUCERS A STEP THAT MR GAIDAR FAILED TO CARRY OUT

MR CHERNOMYRDIN IDENTIFIED CONTROLLING INFLATION AS HIS NO 1 TASK WE
HAVE NO ILLUSIONS HE SAID THERE WILL NOT BE THE KINDS OF EASY CREDITS
THAT WOULD BRING A SPIRAL OF INFLATION BY RELYING PRIMARILY ON
NONMONETARY METHODS MR CHERNOMYRDIN PREDICTS HE CAN BRING THE MONTHLY
INFLATION RATE AFTER A TEMPORARY SPURT TO ABOUT 8 TO 9 BY THE END OF THE
YEAR

THOSE NONMONETARY METHODS HE INDICATED WILL FOCUS ON PROMOTING COMPETITION
AS A MEANS TO BRING PRICES DOWN HE PROMISED TO LIFT CERTAIN ARTIFICIAL
IMPORT BARRIERS TO ALLOW A FREER INFLUX OF FOREIGN PRODUCTS TO COMPETE WITH
DOMESTICALLY PRODUCED GOODS

BUT CONTROLLING INFLATION WILL BE A CHALLENGE AS LONG AS MR GERASHCHENKO
CONTINUES TO HEAD THE CENTRAL BANK ALTHOUGH HE IS JUST ONE OF MANY PLAYERS
RESPONSIBLE FOR RUSSIA'S INFLATIONARY WOES HE MAINTAINS A CRITICAL
SEMIINDEPENDENT ROLE IN THE PROCESS UNLIKE MOST OTHER CENTRAL BANKERS
WORLDWIDE MR GERASHCHENKO INTERPRETS HIS FUNCTION AS HELPING TO KEEP
INDUSTRIES AFLOAT RATHER THAN SIMPLY PROTECTING THE CURRENCY IN A DECREE
YESTERDAY ON THE GOVERNMENT'S REORGANIZATION MR YELTSIN OFFICIALLY
REAPPOINTED THE CENTRAL BANK CHIEF

SUCCEEDING MR GAIDAR AS ECONOMICS MINISTER WILL BE ALEXANDER SHOKHIN A
MODERATE WHO ISN'T LIKELY TO PUSH RADICAL REFORMS MOST RECENTLY MR
SHOKHIN HAS BEEN RESPONSIBLE FOR HANDLING NEGOTIATIONS ON RUSSIA'S DEBT AND
ON ITS RELATIONS WITH FOREIGN LENDING INSTITUTIONS 9401210119 940121
WHO'S NEWS VECTOR NAMES LILLY'S EXCHIEF VICE CHAIRMAN  BY
THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL

VAUGHN D BRYSON ABRUPTLY OUSTED AS ELI LILLY & CO'S CHIEF EXECUTIVE IN A
BOARDROOM COUP LAST SUMMER WAS NAMED VICE CHAIRMAN OF VECTOR SECURITIES
INTERNATIONAL INC AN INVESTMENT BANKING CONCERN

VECTOR BASED IN DEERFIELD ILL SPECIALIZES IN HEALTHCARE AND
BIOTECHNOLOGY BUSINESSES IT WAS FOUNDED IN 1988 BY THREE FORMER KIDDER
PEABODY & CO EXECUTIVES BESIDES UNDERWRITING STOCK OFFERINGS AND MANAGING
INVESTMENT FUNDS VECTOR REPRESENTS MEDICAL COMPANIES IN FORGING DEALS TO
ACQUIRE NEW TECHNOLOGIES IT HELPED ONE CLIENT F HOFFMANNLA ROCHE LTD
ACQUIRE THE CRUCIAL POLYMERASE CHAIN REACTION TECHNOLOGY THAT MAY OVERHAUL
THE WAY HOSPITAL LABORATORIES DIAGNOSE DISEASES SUCH AS AIDS AND HEPATITIS

VECTOR OFFICIALS SAID THEY'RE HOPING THE INDUSTRY KNOWLEDGE AND CONTACTS OF
MR BRYSON WILL BE HELPFUL IN ACQUIRING MORE SUCH BUSINESS AS WELL AS
MERGER DEALS IN THE QUICKLY CONSOLIDATING HEALTHCARE FIELD MR BRYSON 55
YEARS OLD WHO AGREED TO JOIN THE FIRM EFFECTIVE APRIL 1 WILL SERVE ON ITS
EXECUTIVE COMMITTEE

I THOUGHT BEING AT A FASTGROWING ENTREPRENEURIAL COMPANY WOULD BE A LOT OF
FUN SAID MR BRYSON I'VE HAD 32 YEARS OF THE OTHER I ALSO THINK THERE'S
A ROLE FOR COMPANIES LIKE VECTOR IN FACILITATING ALLIANCES IN HEALTH CARE
WHERE WE'RE GOING TO SEE FURTHER CONSOLIDATION

EVEN SO TINY VECTOR WITH ITS 50 EMPLOYEES WILL BE A BIG CHANGE FOR MR
BRYSON WHO FOR 20 MONTHS RAN A 62 BILLIONAYEAR PHARMACEUTICAL CONCERN
WITH 32000 WORKERS AS LILLY'S PRESIDENT AND CEO MR BRYSON RAPIDLY
BROUGHT A COLLEGIAL ATMOSPHERE TO A ONCEAUTHORITARIAN AND CONSERVATIVE
COMPANY NOT GIVEN TO CHANGE THE MOTTO OF ELI LILLY III CHAIRMAN UNTIL
1968 WAS WHENEVER IN DOUBT DON'T DO IT MR BRYSON ALSO APPROVED
NUMEROUS ALLIANCES WITH SMALLER FIRMS THE SORT VECTOR IS SEEKING TO ARRANGE
WITH OTHER MEDICAL COMPANIES

DURING HIS TENURE AS CHIEF EXECUTIVE OFFICER EARNINGS SLIPPED AT
INDIANAPOLISBASED LILLY ALTHOUGH SEVERAL FACTORS CONTRIBUTING TO THE SLIDE
HAD BEEN BUILDING FOR YEARS THE MAIN REASON FOR HIS FIRING IN THE VIEW OF
MANY LILLY EXECUTIVES WAS THAT THE NEW COLLEGIALITY FOSTERED BY THE POPULAR
MR BRYSON IRKED HIS PREDECESSOR RICHARD D WOOD WHO THEN MAINTAINED THE
TITLE OF CHAIRMAN SEVERAL COMPANY EXECUTIVES AND DIRECTORS SAY MR WOOD
WHO DECLINED COMMENT CHAFED UNDER THE CHANGES AND ENGINEERED THE OUSTER IN
JUNE 9401210118 940121 PACIFIC TELESIS U S WEST POST WEAKER RESULTS
  BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL

TWO BABY BELLS REPORTED WEAKER RESULTS FOR THE FOURTH QUARTER MAINLY
REFLECTING THEIR ONGOING RESTRUCTURING TO BECOME MORE COMPETITIVE AND
PROFITABLE

U S WEST INC WHICH IS BASED IN DENVER REPORTED SLIMMERTHANEXPECTED
EARNINGS FOR THE FOURTH QUARTER BUT SHOWED HEALTHY GROWTH IN ACCESS LINES
AND MINUTES OF USAGE TWO BAROMETERS OF A BABY BELL'S FINANCIAL HEALTH

U S WEST SAID NET INCOME DROPPED 13 TO 2641 MILLION OR 62 CENTS A SHARE
FROM 3036 MILLION OR 73 CENTS A SHARE A YEAR EARLIER THE 1992 QUARTER
INCLUDED A ONETIME GAIN OF 417 MILLION EXCLUDING LAST YEAR'S GAIN U S
WEST SAID ITS OPERATING PROFIT WAS UP SLIGHTLY FROM 2619 MILLION IN 1992

FOURTHQUARTER REVENUE WAS 267 BILLION UP 6 FROM 251 BILLION A YEAR
EARLIER

PACIFIC TELESIS GROUP THE SECOND REGIONAL BELL OPERATING COMPANY REPORTED
A FOURTHQUARTER LOSS OF 391 MILLION OR 92 CENTS A SHARE COMPARED WITH
NET INCOME OF 287 MILLION OR 71 CENTS A SHARE A YEAR EARLIER THE LATEST
QUARTER INCLUDED A 101 BILLION RESTRUCTURING CHARGE EXCLUDING SPECIAL
CHARGES THE SAN FRANCISCOBASED COMPANY SAID EARNINGS WOULD HAVE DECREASED
JUST 3 TO 279 MILLION

REVENUE ROSE 1 IN THE FOURTH QUARTER TO 23 BILLION FROM 227 BILLION A
YEAR EARLIER

THE NUMBER OF ACCESS LINES IN U S WEST'S 14STATE TERRITORY WHICH STRETCHES
ACROSS THE COLORADO ROCKIES TO THE SHORES OF PUGET SOUND GREW 37 TO 138
MILLION BILLED MINUTES OF USAGE GREW 91 TO 125 MILLION

I WAS PLEASANTLY SURPRISED ON HOW HEALTHY THE ECONOMIC REGION IS SAID
STEVEN YANIS THE TELECOMMUNICATIONS ANALYST FOR KIDDER PEABODY & CO

JACK GRUBMAN A TELECOMMUNICATIONS ANALYST AT PAINEWEBBER NOTED THAT U S
WEST'S GROWTH IN CASH FLOW AND CELLULAR SUBSCRIBERS WERE BOTH ABOVE AVERAGE
INDICATING GOOD THINGS BEHIND THE NUMBERS

FOR THE YEAR U S WEST REPORTED A NET LOSS OF 28 BILLION OR 669 A
SHARE COMPARED WITH A LOSS OF 614 MILLION OR 149 A SHARE IN 1992 THE
1993 EARNINGS INCLUDE THIRDQUARTER CHARGES OF 1 BILLION FOR RESTRUCTURING
AND A SEPARATE 32 BILLION CHARGE FOR ACCOUNTING CHANGES U S WEST ALSO
TOOK A 100 MILLION CHARGE DURING THE SECOND QUARTER TO COVER COSTS
ASSOCIATED WITH DISCONTINUING A FINANCIALSERVICES BUSINESS A MOVE THAT WAS
APPLAUDED ON WALL STREET

THE BABY BELL ANNOUNCED PLANS LAST YEAR TO INVEST 25 BILLION FOR A 25
STAKE IN TIME WARNER INC'S ENTERTAINMENT UNIT THAT DEAL WAS FINALIZED IN
SEPTEMBER EARLIER THIS MONTH U S WEST SAID IT PLANNED TO BUILD NEW
MULTIMEDIA NETWORKS IN 20 CITIES OVER THE NEXT FIVE YEARS STARTING WITH A
750 MILLION EFFORT IN FOUR CITIES

FOR THE YEAR PACIFIC TELESIS REPORTED A NET LOSS OF 15 BILLION OR 363
A SHARE IN 1992 THE BABY BELL REPORTED NET INCOME OF 114 BILLION OR
283 A SHARE REVENUE WAS UP SLIGHTLY TO 924 BILLION

PACIFIC TELESIS WHICH IS IN THE PROCESS OF SPINNING OFF ITS CELLULAR UNIT
PROVIDES LOCAL TELEPHONE SERVICES IN CALIFORNIA AND NEVADA THE SPINOFF IS
EXPECTED TO BE COMPLETED THIS SPRING

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING U S WEST ROSE 50 CENTS TO
43625 AND PACIFIC TELESIS CLOSED AT 57 UP 875 CENTS 9401210117
940121 CORRECTIONS & AMPLIFICATIONS

DEFIANCE INC EXPECTS PERSHARE EARNINGS IN THE MID70 CENTS AREA BEFORE
ACCOUNTING CHANGES FOR THE YEAR ENDING JUNE 30 AN ARTICLE YESTERDAY
INCORRECTLY CALLED THE ACCOUNTING CHANGES CHARGES

BROOKE GROUP LTD'S MARKET PRICE DECLINED 167 IN THE QUARTER ENDED DEC
31 AFTER ADJUSTING FOR A SPINOFF OF SKYBOX INTERNATIONAL IN THE JAN 3
EDITIONS THE COMPANY WAS INCORRECTLY INCLUDED IN THE LIST OF 10 WORST
PERFORMING ISSUES ON THE NEW YORK STOCK EXCHANGE

RX MEDICAL SERVICES CORP ERRONEOUSLY WAS INCLUDED AMONG THE TOP 10 GAINERS
ON THE AMERICAN STOCK EXCHANGE FOR THE FOURTH QUARTER BECAUSE ITS PRICE
WASN'T ADJUSTED FOR A 1FOR4 REVERSE SPLIT THE LIST WAS PUBLISHED IN THE
EDITIONS OF JAN 3

J WALTER THOMPSON AN ADVERTISING AGENCY BASED IN NEW YORK IS OWNED BY WPP
GROUP YESTERDAY'S ADVERTISING COLUMN INCORRECTLY SAID IT IS OWNED BY
OMNICOM GROUP 9401210116 940121 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 1/16 HIGH 2 5/8 LOW 2 7/8 NEAR CLOSING BID 3
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 306 30
TO 59 DAYS 308 60 TO 89 DAYS 310 90 TO 119 DAYS 314 120 TO 179
DAYS 323 180 TO 259 DAYS 332 260 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 314 30 DAYS 315 60 DAYS 318 90 DAYS

CERTIFICATES OF DEPOSIT 252 ONE MONTH 255 TWO MONTHS 256 THREE
MONTHS 269 SIX MONTHS 295 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 302 ONE MONTH 307 THREE MONTHS 322 SIX MONTHS

BANKERS ACCEPTANCES 302 30 DAYS 304 60 DAYS 307 90 DAYS 309 120
DAYS 314 150 DAYS 318 180 DAYS OFFERED RATES OF NEGOTIABLE
BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER

LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO
MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8
 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 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 589 JAPAN 3 SWITZERLAND
750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE
LENDING PRACTICES VARY WIDELY BY LOCATION

TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 18 1994 AUCTION OF
SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN
UNITS OF 10000 TO 1 MILLION 299 13 WEEKS 315 26 WEEKS

FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR
MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 685 60 DAYS 693 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 685 60
DAYS 695 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE
CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC

MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9401210115 940121 BUSINESS BRIEF TELEFONOS DE MEXICO SA TELEPHONE
FIRM TO EXPAND LINE NETWORK BY 12 IN '94

TELEFONOS DE MEXICO SA WILL EXPAND ITS LINE NETWORK BY 12 OR ABOUT 900000
LINES IN 1994 TO 83 MILLION LINES ACCORDING TO THE COMPANY'S PROGRAM
PUBLISHED BY THE MEXICAN COMMUNICATIONS AND TRANSPORTATION MINISTRY

THE EXPANSION IS SET BY THE TERMS OF THE MEXICAN TELECOMMUNICATIONS
COMPANY'S DECEMBER 1990 PRIVATIZATION

TELMEX PREVIOUSLY REPORTED THAT IT WOULD SPEND 75 BILLION NEW PESOS 242
BILLION ON CAPITAL IMPROVEMENTS IN 1994

TELMEX WILL ADD 31000 PUBLIC TELEPHONES THIS YEAR TO REACH A DENSITY OF TWO
PUBLIC PHONES FOR EACH 1000 RESIDENTS THE COMPANY ALSO WILL ADD MORE THAN
2100 MILES OF FIBEROPTIC LINES THAT WILL COMPLETE WORK ON TELMEX'S
8400MILE FIBEROPTIC TRUNK NETWORK CONNECTING THE NATION'S 54 PRINCIPAL
CITIES

TELMEX ALSO PLANS TO INCORPORATE AN ADDITIONAL 3000 RURAL COMMUNITIES WITH
MORE THAN 500 INHABITANTS EACH INTO ITS NETWORK THIS YEAR REACHING A TOTAL
OF 19000 SUCH COMMUNITIES 9401210113 940121 LEGAL BEAT FAULTY
SOFTWARE MEANS BUSINESS FOR LITIGATORS  BY MILO GEYELIN STAFF
REPORTER OF THE WALL STREET JOURNAL

WHEN COMPUTER SYSTEMS MALFUNCTION THE RESULTS CAN BE NIGHTMARISH CAR
ACCIDENTS MEDICAL MISDIAGNOSES BOTCHED ACCOUNTING AND INVENTORY LISTS FOR
LAWYERS THIS MEANS BIG NEW OPPORTUNITIES FOR HIGHSTAKES LITIGATION

THERE'S ACTUALLY MORE OPPORTUNITY FOR TECHNOLOGY TO MALFUNCTION NOW THAN
THERE WAS 10 OR 15 YEARS AGO SAYS CLYDE BUZZ H WILSON JR A
COMPUTERLITIGATION SPECIALIST IN SARASOTA FLA WHO CONDUCTS SEMINARS FOR
LAWYERS ON HOW TO PRESENT COMPUTERPERFORMANCE CASES TO JURIES AS
TECHNOLOGY BECOMES MORE PERVASIVE AND COMPLEX HE SAYS IT IS MORE LIKELY TO
FAIL THE CONSEQUENCE AN EMERGING LEGAL NICHE FOR CLIENTS SEEKING DAMAGES
DUE TO MALFUNCTIONING COMPUTER SYSTEMS

IN THE 21ST CENTURY COMPUTER PERFORMANCE IS GOING TO PLAY A ROLE IN MOST
LITIGATION PREDICTS BRUCE BIERHANS A BOSTON PLAINTIFFS' LAWYER WHO IS
HEAD OF A COMPUTERVENDOR LIABILITY GROUP AT THE ASSOCIATION OF TRIAL
LAWYERS OF AMERICA HE POINTS TO AN AUTOACCIDENT SUIT HE INVESTIGATED LAST
WEEK INVOLVING A WOMAN WHO INJURED HER NECK WHEN HER CAR SKIDDED INTO A
TELEPHONE POLE SHE BLAMES FAULTY BRAKES TO PROVE THE ALLEGATION MR
BIERHANS WILL LOOK NOT ONLY AT THE BRAKE CYLINDERS AND LININGS BUT ALSO AT
THE VEHICLE'S COMPUTERASSISTED ANTILOCK SYSTEM

WHAT I'M TRYING TO DO IS BEGIN TO EDUCATE MORE TORT LAWYERS  IN
LINKING COMPUTER PERFORMANCE TO TRADITIONAL TORT CASES HE SAYS THE NEW
LITIGATION IS DRIVING SOFTWARE VENDORS TO BE MORE CAUTIOUS IN WHAT THEY
PROMISE IN THEIR CONTRACTS AND BUYERS TO BE MORE REALISTIC IN WHAT THEY
EXPECT

SO FAR THE BIGGEST LAWSUITS LINK COMPANIES' LOST PROFITS TO ALLEGEDLY
FAULTY SOFTWARE IN A TRIAL THAT HAS BEEN GOING ON SINCE LAST SEPTEMBER IN
NEW JERSEY SUPERIOR COURT IN JERSEY CITY KANE CARPET CO FORMERLY THE
FOURTHLARGEST CARPET DISTRIBUTOR IN THE NATION IS CLAIMING THAT A 308000
COMPUTER SYSTEM IT BOUGHT IN 1988 FOR INVENTORY CONTROL WENT HAYWIRE
PLUNGED THE COMPANY INTO CHAOS AND DROVE IT OUT OF BUSINESS IN 17 MONTHS

IT WAS LIKE TAKING A PERFECTLY HEALTHY HUMAN BEING AND PUTTING IN A
DEFECTIVE PART SAYS KANE'S ATTORNEY MARC S FRIEDMAN OF THE ROSELAND
NJ FIRM OF FRIEDMAN & SIEGELBAUM LOST ASSETS AND CONSEQUENTIAL
DAMAGES INCLUDING THE DIMINISHED VALUE OF THE COMPANY AND MONEY NOW OWED
TO CREDITORS EXCEED 37 MILLION HE CONTENDS THE DEFENDANT IN THE CASE A
NOWDEFUNCT DIVISION OF MCDONNELL DOUGLAS CORP MAINTAINS THAT KANE WAS
ALREADY ON A SLIPPERY FINANCIAL SLOPE WHEN IT BOUGHT THE SOFTWARE AND THAT
THE SOFTWARE DIDN'T CAUSE THE COLLAPSE

IN SUCH CASES PART OF THE PROBLEM BETWEEN SOFTWARE VENDORS AND USERS IS ONE
OF DEPENDENCY USERS FIND THEMSELVES AT THE VENDORS' MERCY A COMPUTER
COMPANY CAN TAKE OVER A BUSINESS BECAUSE IT'S THE ONLY ENTITY THAT KNOWS
WHAT'S GOING ON SAYS HANK BARRIE A SAN FRANCISCO COMPUTERPERFORMANCE
LITIGATOR AT THE FIRM OF COOLEY GODWARD CASTRO HUDDLESON & TATUM

LAWYERS FOR SOFTWARE MANUFACTURERS COUNTER THAT MANY BUYERS HAVE UNREALISTIC
EXPECTATIONS COMMUNICATE THEIR NEEDS POORLY OR CHANGE THEIR MINDS ABOUT
WHAT THEY WANT THEIR COMPUTERS TO DO IN TALLAHASSEE FLA EDS CORP A
UNIT OF GENERAL MOTORS CORP IS SUING THE STATE DEPARTMENT OF HEALTH AND
REHABILITATIVE SERVICES FOR WITHHOLDING A 46 MILLION PAYMENT FOR THE DESIGN
AND INSTALLATION OF THE NATION'S LARGEST SOCIAL SERVICES COMPUTER

IN A COUNTERSUIT ALLEGING BREACH OF CONTRACT THE STATE AGENCY CONTENDS THAT
THE COMPUTER ENDED UP COSTING MORE THAN TWICE THE ORIGINAL ESTIMATE AND THAT
THE SYSTEM STILL ISN'T POWERFUL ENOUGH TO HANDLE THE STATE'S NEEDS

AT THE CORE OF THE PROBLEM WAS A 1988 STATE PROJECTION OF HOW MANY FLORIDA
RESIDENTS WOULD REQUIRE STATE AID BY THE TIME THE COMPUTER WAS ON LINE FIVE
YEARS LATER IT TURNED OUT TO BE WILDLY SHORT OF THE MARK LEADING TO ERRORS
IN PAYMENT AND DELAYS THAT RESULTED IN 175 MILLION IN FEDERAL PENALTIES
LEVIED ON THE STATE

EDS SAYS IT DELIVERED WHAT IT PROMISED AND BLAMES THE STATE IT JUST SHOWS
THAT WHEN YOU'VE GOT A COMPLICATED SYSTEM YOU'VE GOT TO HAVE WORKABLE NEEDS
TO ADAPT TO CHANGING ASSUMPTIONS SAYS EDS ATTORNEY JOHN RADEY OF THE
TALLAHASSEE FIRM OF AURELL RADEY HINKLE THOMAS & BERANEK

DENNIS DEAN ASSISTANT ATTORNEY GENERAL COUNTERS THAT IN ITS RUSH TO WIN
THE LUCRATIVE STATE JOB EDS PROMISED MORE THAN IT COULD DELIVER COMPUTER
COMPANIES CAN'T SAY NO SAYS MR DEAN YOU GO TO THEM AND THEY SAY SURE
WE CAN DO THAT' AND SOMETIMES THEY HAVE PROBLEMS IN COMING THROUGH

DISPUTES AS COMPLEX AS THIS UNDERSCORE THE IMPORTANCE OF DRAFTING CONTRACTS
THAT CLEARLY SPELL OUT WHAT IS BEING PROVIDED THE COST AND WHAT LIMITS ON
LEGAL REMEDIES AND DAMAGES APPLY SO VENDORS COMPUTER LAW EXPERTS SAY
INCREASINGLY INSIST ON CONTRACT CLAUSES AND WARRANTY DISCLAIMERS THAT BAR
DAMAGES FOR ANYTHING BEYOND THE OUTOFPOCKET COST OF PURCHASING THE SYSTEM
THESE CLAUSES SEEK TO PRECLUDE DAMAGES FOR ECONOMIC LOSSES THAT THE BUYER
MAY SUSTAIN BECAUSE A COMPUTER SYSTEM DOESN'T MEET ITS NEEDS

LAST JUNE A NEW YORK APPEALS COURT THREW OUT A 54 MILLION DAMAGE AWARD TO
METROPOLITAN LIFE INSURANCE CO BECAUSE OF A CLAUSE IN ITS CONTRACT WITH A
VENDOR IN ROSELAND NJ NOBLE LOWNDES INTERNATIONAL INC THE CONTRACTED
SOFTWARE PROGRAM WAS NEVER COMPLETED ALLEGEDLY COSTING METROPOLITAN 54
MILLION IN EXPENSES AND SAVINGS THAT IT ANTICIPATED HAD THE
CLAIMSPROCESSING SOFTWARE PERFORMED AS PROMISED THE APPEALS COURT RULED
THAT UNDER ITS CONTRACT METROPOLITAN WAS ONLY ENTITLED TO WHAT IT HAD
ACTUALLY PAID THE VENDOR 204000

THAT RULING AND OTHERS LIKE IT ARE FORCING PLAINTIFFS' LAWYERS TO TRY
CIRCUMVENTING CONTRACT PROVISIONS IN LAWSUITS OVER COMPUTER PERFORMANCE BY
ALLEGING FRAUD OR MISREPRESENTATION IT'S FAIR TO SAY THAT IN MOST COMPUTER
COMPANIES THERE ARE STRONG INCENTIVES ON THE PART OF SOME SALES PEOPLE TO
OVERSELL THE SYSTEM SAYS MR REESE

THAT IS WHAT IS BEING ALLEGED IN KANE CARPET'S LAWSUIT ACCORDING TO THE
SUIT THE VENDOR ASSURED KANE THAT ITS SOFTWARE WAS CUSTOMTAILORED TO THE
FLOORCOVERING DISTRIBUTION INDUSTRY WHEN THE SYSTEM SWITCHED ON IN MARCH
1989 THE COMPANY CLAIMS CHAOS ENSUED

WE WERE TELLING CUSTOMERS WE COULDN'T FILL THEIR ORDERS WHEN WE HAD THE
STOCK AND THAT WE COULD FILL THEIR ORDERS WHEN WE DIDN'T HAVE THE STOCK
SAYS FORMER ADMINISTRATIVE SYSTEMS MANAGER JIM SLATTERY IN A BUSINESS WHERE
PROMPT AND RELIABLE DELIVERY TO RETAILERS IS CRUCIAL IT DIDN'T TAKE LONG
FOR KANE'S CUSTOMERS TO FIND OTHER DISTRIBUTORS

THERE WAS NO WAY TO RECOVER SAYS MR SLATTERY WE HAD DESTROYED OUR
CREDIBILITY WITH THE BULK OF OUR CUSTOMERS

VANNA WHITE WON A JURY VERDICT OF 403000 AGAINST SAMSUNG ELECTRONICS CO
AND ITS ADVERTISING AGENCY IN A CASE THAT EXPANDS CELEBRITIES' PROTECTION
FROM UNAUTHORIZED USES OF THEIR LIKENESSES

THE FEDERAL COURT JURY IN LOS ANGELES SAID THE SOUTH KOREAN COMPANY AND THE
ADVERTISING AGENCY DEUTSCH/DWORIN INC VIOLATED MS WHITE'S RIGHT OF
PUBLICITY WITH AN ADVERTISEMENT DEPICTING A LETTERTURNING ROBOT IN A
VANNALIKE WIG AND GOWN MS WHITE WHO IS A STAR OF THE TELEVISION SHOW
WHEEL OF FORTUNE DIDN'T GIVE PERMISSION FOR THE AD WHICH BORE THE
CAPTION LONGEST RUNNING GAME SHOW 2012 AD AND WHICH WAS INTENDED TO
SUGGEST THE LONG LIFE OF SAMSUNG PRODUCTS

MS WHITE WON COMPENSATORY DAMAGES OF 205000 FROM SAMSUNG AND 198000
FROM DEUTSCH/DWORIN NEW YORK THE COMPANIES DECLINED TO COMMENT ON THE
JURY'S FINDINGS DEUTSCH/DWORIN SAID IT PROBABLY WON'T APPEAL

IN A NOTABLE DECISION IN THE CASE LAST YEAR THE NINTH US CIRCUIT COURT OF
APPEALS EXPANDED ON EARLIER RULINGS THAT STOPPED ADVERTISERS FROM USING
CELEBRITY FACES AND NAMES WITHOUT PERMISSION THE COURT SAID CELEBRITIES
ALSO HAVE THE RIGHT TO CONTROL LIKENESSES OF THEMSELVES SUCH AS THE
LETTERTURNING ROBOT

PHILIP M COWAN HEAD OF THE NEW YORK STATE BAR SECTION ON ENTERTAINMENT
LAW SAID ADVERTISERS HAVE SINCE BECOME MORE CAUTIOUS ABOUT APPROPRIATING
CELEBRITY IMAGES

A FEDERAL JUDGE IN HOUSTON OVERTURNED TWO NEW TEXAS LAWS THAT WERE DESIGNED
TO KEEP LAWYERS AND DOCTORS FROM RUSHING TO SOLICIT BUSINESS FROM ACCIDENT
VICTIMS

ONE OF THE MEASURES WOULD BAR LAWYERS HEALTH PROFESSIONALS AND PRIVATE
INVESTIGATORS FROM WRITING TO ACCIDENT VICTIMS TO SOLICIT THEIR BUSINESS
WITHIN 30 DAYS OF THE ACCIDENT THE PROVISION ALSO WOULD BAR WRITTEN
SOLICITATIONS OF CRIMINAL DEFENDANTS WITHIN 30 DAYS OF THEIR ARREST

THE SECOND MEASURE WOULD KEEP LAWYERS AND HEALTH PROFESSIONALS FROM
OBTAINING ACCESS TO AN ACCIDENT REPORT WITHIN 180 DAYS OF AN ACCIDENT BUT
INSURANCE AGENTS AND NEWS REPORTERS WOULD HAVE IMMEDIATE ACCESS

THE LAWS WERE CHALLENGED BY LAWYERS CHIROPRACTORS AND ORGANIZATIONS THAT
RESEARCH PUBLIC RECORDS FOR A FEE US DISTRICT JUDGE DAVID HITTNER WHO IN
AUGUST TEMPORARILY ENJOINED ENFORCEMENT OF THE MEASURES THIS WEEK RULED
THAT THEY VIOLATED THE FIRST AMENDMENT'S PROTECTION OF COMMERCIAL SPEECH

A SPOKESWOMAN FOR THE TEXAS ATTORNEY GENERAL'S OFFICE SAID SHE EXPECTED THE
STATE TO APPEAL THE RULING

MARY MOORE ET AL VS DAN MORALES ET AL US DISTRICT COURT HOUSTON
CIV NO H932170

JUNDA WOO AND ARTHUR BUCKLER CONTRIBUTED TO THIS ARTICLE 9401210112
940103 BEST AND WORST IN THE FOURTH PERIOD

BROOKE GROUP LTD'S MARKET PRICE DECLINED 167 IN THE QUARTER ENDED DEC
31 AFTER ADJUSTING FOR A SPINOFF OF SKYBOX INTERNATIONAL IN THE JAN 3
EDITIONS THE COMPANY WAS INCORRECTLY INCLUDED IN THE LIST OF 10 WORST
PERFORMING ISSUES ON THE NEW YORK STOCK EXCHANGE

RX MEDICAL SERVICES CORP ERRONEOUSLY WAS INCLUDED AMONG THE TOP 10 GAINERS
ON THE AMERICAN STOCK EXCHANGE FOR THE FOURTH QUARTER BECAUSE ITS PRICE
WASN'T ADJUSTED FOR A 1FOR4 REVERSE SPLIT THE LIST WAS PUBLISHED IN THE
EDITIONS OF JAN 3 9401210111 940121 NEW YORK LIFE SELLS SOME ASSETS 
TO CANADA LIFE  BY LARRY M GREENBERG STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK LIFE INSURANCE CO SAID IT SOLD THE BULK OF ITS CANADIAN INSURANCE
BUSINESS TO CANADA LIFE ASSURANCE CO IN WHAT IS SEEN AS AN EARLY STEP IN AN
EXPECTED WAVE OF CONSOLIDATION IN CANADA'S OVERLY CROWDED LIFEINSURANCE
INDUSTRY TERMS WEREN'T DISCLOSED

NEW YORK LIFE A US MUTUAL LIFE INSURER THAT HAS DONE BUSINESS IN CANADA
SINCE 1858 IS EXITING FROM THIS MARKET AT A TIME WHEN SALES OF NEW
LIFEINSURANCE POLICIES ARE STAGNATING AND COMPANIES' PROFIT MARGINS ARE
BEING ERODED BY STIFF COMPETITION THE INDUSTRY IS EXPECTED TO FACE
ADDITIONAL PRESSURES AS THE COUNTRY'S BIG BANKS BUILD UP THEIR OWN
INSURANCEUNDERWRITING OPERATIONS FOLLOWING FINANCIAL DEREGULATION LAST
YEAR

BECAUSE OF THE LACK OF MARKET GROWTH IN CANADA THERE ARE TOO MANY INSURANCE
CARRIERS GOING AFTER BUSINESS OUR SIZE IS SUCH THAT WE REALLY DON'T HAVE
THE APPROPRIATE CRITICAL MASS TO COMPETE SAID SEYMOUR STERNBERG EXECUTIVE
VICE PRESIDENT AT NEW YORK LIFE'S HEAD OFFICE THE COMPANY WHICH DOES 95
OF ITS BUSINESS IN THE US WILL CONTINUE TO OPERATE IN SOME FASTERGROWING
MARKETS OVERSEAS ESPECIALLY THE FAR EAST HE SAID

NEW YORK LIFE HAS ASSETS IN CANADA OF 125 BILLION CANADIAN DOLLARS
US9543 MILLION AND WRITES ABOUT C185 MILLION OF NEW BUSINESS ANNUALLY
MAINLY IN THE INDIVIDUAL LIFE SECTOR THE COMPANY WILL RETAIN A SMALL GROUP
LIFE INSURANCE POLICY BUSINESS THAT WILL BE RUN OUT OF ITS NEW YORK OFFICE

CANADA LIFE IN TORONTO IS ONE OF THE COUNTRY'S LARGEST LIFE INSURERS WITH
C22 BILLION IN ASSETS THE COMPANY SAID THE ACQUISITION REFLECTS ITS DRIVE
TO INCREASE MARKET SHARE AND IMPROVE ITS ECONOMIES ESPECIALLY IN CLAIMS
PROCESSING

SLIM PROFIT MARGINS HAVE CAUSED A FEW PLAYERS TO ABANDON CANADA'S PROPERTY
AND CASUALTY INSURANCE MARKET ANALYSTS AND INDUSTRY OFFICIALS PREDICT THAT
A SIMILAR SHAKEOUT IN THE LIFEINSURANCE MARKET WILL CAUSE AS MANY AS HALF
OF CANADA'S 150 LIFE INSURERS TO DISAPPEAR OR BE SWALLOWED UP

WEIGHING HEAVILY ON THE INDUSTRY'S FUTURE ARE THE COUNTRY'S BIG BANKS WHICH
ARE EXPECTED TO BUILD UP LOWCOST DISTRIBUTION SYSTEMS THROUGH THEIR OWN
INSURANCE SUBSIDIARIES WITHIN A FEW YEARS CANADIAN IMPERIAL BANK OF
COMMERCE THE COUNTRY'S SECOND LARGEST BANK ALREADY HAS LAUNCHED ITS OWN
INSURANCE COMPANY IN COMPETITION WITH THE TRADITIONAL INDUSTRY PLAYERS
9401210110 940121 NOTABLE & QUOTABLE

THOMAS SOWELL HOOVER INSTITUTION FELLOW IN THE NOV 19 NEW YORK POST

WHAT THE WELFARE STATE IS SAYING WHETHER IN THIS NEW HEALTH SECURITY ACT
OR IN A THOUSAND OTHER PROGRAMS IS THAT WE ARE NOT TO BE A NATION OF
INDEPENDENT PEOPLE CONTROLLING OUR OWN LIVES BUT A NATION OF CLIENTS WHOSE
LIVES ARE CONTROLLED BY BUREAUCRATS DISPENSING TAXPAYERS' MONEY ACCORDING
TO THE VISION OF THE ANOINTED

THIS IS NOT A NEW IDEA HOWEVER MUCH THE ADVOCATES OF THE WELFARE STATE
PROCLAIM CHANGE MOST OF THE HISTORY OF THE HUMAN RACE HAS BEEN A HISTORY
OF THE MASSES OF ORDINARY PEOPLE HAVING THEIR LIVES CONTROLLED AND THEIR
DESTINY DECIDED BY SOME ELITE

IT HAS TAKEN CENTURIES OF STRUGGLE AGONY SACRIFICE AND BLOODSHED TO GET
OUT FROM UNDER THE THUMB OF THOSE WHO ACTED AS IF THEY HAD BEEN BORN INTO
THIS WORLD BOOTED AND SPURRED TO RIDE MANKIND NOW WE ARE TURNING AROUND
AND HEADING BACKWARD TOWARD A WORLD WHERE PEOPLE'S FATES ARE NOT IN THEIR
OWN HANDS BUT IN THE HANDS OF SOME PUFFEDUP POLITICAL LEADERS
9401210109 940121 FASHION BETWEEN SUITS AND JEANS THE CORPORATE CASUAL
LOOK  BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL

AS STARCHY CORPORATE DRESS CODES CRUMBLE AND CASUAL FRIDAYS SPREAD TO MORE
OFFICES MALE WARDROBE ANXIETY IS ON THE RISE

THE MENSWEAR INDUSTRY THINKS IT HAS THE ANSWER A NEW CATEGORY OF CLOTHING
DUBBED CORPORATE CASUAL DESIGNED TO BRIDGE THE GAP BETWEEN PINSTRIPES AND
JEANS BY PUTTING A STYLISH NEW SPIN ON EVERYTHING FROM SPORT COATS TO
NECKTIES MENSWEAR MARKETERS HOPE TO REGAIN SOME OF THE BUSINESS THEY LOST
AS SALES OF TAILORED SUITS DROPPED 15 FROM 1989 TO 1992

THE TRICK WILL BE REEDUCATING A CUSTOMER WHO IS A BIT AT SEA SARTORIALLY
SPEAKING MANY MEN ARE BEFUDDLED BY THE RELAXATION OF LONGESTABLISHED
DRESSFORSUCCESS RULES STRIPPED OF THEIR SUITS THEY WONDER HOW DO YOU
PRESENT YOURSELF AS SUCCESSFUL PROFESSIONAL AND A HOT SHOT SAYS MICHAEL
CLINTON PUBLISHER OF GQ MAGAZINE

BUT INDISPUTABLY THE BUSINESS SUIT HAS LOST SOME OF ITS VERSATILITY WHEN
INVITATIONS TO LAST MONTH'S CHRISTMAS PARTY AT WESTCHESTER COUNTY MEDICAL
CENTER IN VALHALLA NY CALLED FOR CASUAL DRESS DOCTORS HUDDLED OVER
SUITABLE ATTIRE WE AGREED THAT WE WEREN'T GOING TO WEAR SUITS BUT THAT'S
ABOUT AS FAR AS WE GOT RECALLS LOUIS ROSE A 38YEAROLD ORTHOPEDIST

DR ROSE CONSIDERED THREE OUTFITS BEFORE SETTLING ON A DOUBLEBREASTED NAVY
SUIT AND WHITE SILK TSHIRT OTHER DOCTORS TURNED UP IN EVERYTHING FROM
BLAZERS AND SPORT COATS TO JEANS THE TWO MEN IN SUITS AND TIES REALLY
STUCK OUT DR ROSE SAYS ADDING IT'S ALWAYS A STRUGGLE WHEN THEY SAY
DRESS CASUALLY IT'S NOT THAT YOU WANT TO DRESS TO KILL YOU JUST WANT TO
FIT IN

MINDFUL THAT MANY MEN ARE FLOUNDERING AND TO SPUR FURTHER SALES OF ITS
SUCCESSFUL DOCKERSBRAND CASUAL LINE LEVI STRAUSS & CO IS URGING
BUSINESSES TO GIVE EMPLOYEES MORE GUIDANCE IT'S ALSO CULTIVATING THE
CORPORATE MANAGERS WHO SET DRESS CODES INVITING INQUIRIES FROM THEM ON A
SPECIAL TOLLFREE TELEPHONE LINE

LAST DECEMBER THE COMPANY MAILED A NEWSLETTER AND QUESTIONNAIRE TO
THOUSANDS OF CORPORATE HUMANRESOURCE EXECUTIVES THE POINT WAS TO HELP
COMPANIES DETERMINE WHAT CASUAL WEAR IS RIGHT FOR THEM AND HOW THEY CAN GO
ABOUT INSTITUTING CASUAL DRESS CODES A LEVI STRAUSS SPOKESMAN SAYS THE
MAILING INCLUDED A PICTORIAL GUIDE TO CASUAL BUSINESS WEAR FEATURING WHAT
ELSE LEVI'S AND DOCKERS PANTS AND SHIRTS THE DOCKERS DIVISION HAS
GROWN TO A 1 BILLION BUSINESS IN SEVEN YEARS

DESPITE WIDESPREAD UNCERTAINTY OVER SHIFTING OFFICE FASHION MORE CORPORATE
SUITS ARE LOOSENING UP IN THE WORKPLACE IN A SURVEY LAST FALL OF MEN WHO
REGULARLY WEAR SUITS FOR BUSINESS 38 SAID THAT THEY WERE BUYING MORE
CASUAL CLOTHES FOR WORK ACCORDING TO KURT SALMON ASSOCIATES APPAREL
CONSULTANTS AND AT THE 80STORE BROOKS BROTHERS CHAIN SPORTCOAT SALES
GREW 24 LAST YEAR WHILE SUIT SALES WERE DOWN 3 THIS YEAR MANY MENSWEAR
MARKETERS WILL CAPITALIZE ON THE TREND BY INTRODUCING ENTIRE COLLECTIONS OF
CASUAL BUSINESS ATTIRE

THE SEARCH FOR AN INBETWEEN WARDROBE HARKS BACK TO THE 1970S WHEN MENSWEAR
DESIGNERS DREAMED UP THE LEISURE SUIT A SHIRTSTYLE JACKET AND MATCHING
PANTS THAT MEN WORE TO RESTAURANTS AND PARTIES ALTHOUGH IT LATER BECAME A
FASHION JOKE IN ITS HEYDAY MANY MEN LIKED THE LEISURE SUIT'S LOOSEFITTING
JACKET WHICH COVERED MEN'S EMBARRASSMENT OVER THEIR GUTS SAYS RICHARD
MARTIN A FASHION HISTORIAN AND THE CURATOR OF THE COSTUME INSTITUTE OF THE
METROPOLITAN MUSEUM IN NEW YORK

AS THE 1990S ANSWER TO THE LEISURE SUIT THE CORPORATE CASUAL LOOK IS HARDER
TO PULL OFF BECAUSE IT CAN'T BE PURCHASED OFF THE RACK IT REQUIRES MEN TO
ACCESSORIZE AND TO COORDINATE SEPARATE PIECES TO MIX TWEEDS WITH DENIM OR
TSHIRTS WITH BLAZERS AND TO PAIR SUCH OUTFITS WITH THE NEW FUN TIES
FEATURING BOLD GRAPHICS IN A WORD THE LOOK TAKES FLAIR

RETAILERS LIKE THE IDEA BECAUSE THE COST OF THE VARIOUS PIECES IN A CASUAL
ENSEMBLE CAN ADD UP TO MORE THAN THE PRICE OF A TAILORED SUIT MANY
DEPARTMENT STORES ARE BANKING HEAVILY ON A NEW TAILORED CLOTHING COLLECTION
BEING MARKETED BY HARTMARX CORP IN A LICENSING AGREEMENT WITH DESIGNER
TOMMY HILFIGER WHO HAS BOUTIQUES IN 500 DEPARTMENT STORES

DEPARTING FROM THAT OLD STANDBY THE NAVY TWOBUTTON BLAZER MR HILFIGER
HAS ADDED WHAT HE CALLS TWISTS TO A FALL LINE OF SPORT COATS THAT WILL
RETAIL FOR 265 AND UP THE THREEBUTTON OR FOURBUTTON SPORT COATS COME IN
COLORFUL PLAIDS STRIPES AND PATTERNS WITH SUCH FLOURISHES AS ROUNDED
VELVETEEN COLLARS SLEEVES OF CONTRASTING COLORS AND PRINTED LININGS MR
HILFIGER ALSO OFFERS REVERSIBLE VESTS DRESS SLACKS AND PATTERNED DRESS
SHIRTS MANUFACTURED BY OXFORD INDUSTRIES

THIS IS A COLLECTION THAT IS SOPHISTICATED AND WEARABLE AND AT THE RIGHT
PRICE SAYS JOHN SADLIER A SENIOR VICE PRESIDENT AT THE 217STORE
FEDERATED DEPARTMENT STORES INC CHAIN FEDERATED PLANS TO INTRODUCE THE
COLLECTION IN ITS LARGER STORES IN JULY

A NUMBER OF MENSWEAR COMPANIES ARE BRINGING OUT NEW SPORTSWEAR LABELS
DESIGNED TO REMIND MEN OF THE GLARING GAP IN THEIR WARDROBES SHIRT MAKER
PHILLIPSVAN HEUSEN CORP FOR EXAMPLE HAS INTRODUCED CORPORATE CASUAL
COLLECTION BY VAN HEUSEN A LINE OF LOOSEFITTING SHIRTS MANY WITH PATCH
POCKETS AND TEXTURED WEAVES THE SHIRTS WERE FEATURED IN A FIVEPAGE
ADVERTORIAL HEADLINED THE NEW DRESS CODE THAT RAN IN THE DECEMBER ISSUE
OF GQ MAGAZINE

CASUAL TROUSERS ARE MAKING INROADS IN CORPORATE SUITES THANKS IN PART TO A
NEW MACHINEWASHABLE COTTON TREATED TO RESIST WRINKLES AND RETAIN A CREASE
HAGGAR CORP AND FARAH INC WERE AMONG THE MANUFACTURERS THAT BROUGHT OUT
NOIRON PANTS LAST YEAR HAGGAR WHICH BACKED ITS INTRODUCTION WITH A 12
MILLION ADVERTISING CAMPAIGN SOLD MORE THAN 75 MILLION OF THE TROUSERS
LAST YEAR

EVEN BROOKS BROTHERS IS BREAKING WITH TRADITION PROMOTING THE NOTION THAT
BUSINESS SUITS DON'T ALWAYS MAKE THE MAN IN ONE OF ITS RECENT ADS
HEADLINED LIGHT ON THE STARCH A MAN WEARING A CASHMERE TURTLENECK AND
TWEED SPORT COAT IS SHOWN STANDING BESIDE A MAN IN A DENIM SHIRT AND
POLKADOT TIE THE COPY READS IS THE SPORT COAT A CEO OR A NEWMINTED MBA
IS THAT THE SOFTWARE KING IN THE BAGGY PANTS OR A CORPORATE VP IN FRIDAY
TRIM SUCCESS TODAY IS OFTEN OUT OF UNIFORM BUT WEARS THE SAME LABEL IT HAS
FOR 175 YEARS

AT SOME COMPANIES SUCH MESSAGES ARE ALREADY OLD HAT THE COMPUTER SOFTWARE
INDUSTRY IN PARTICULAR GREW UP WITHOUT EVER ESTABLISHING A BUTTONEDUP
TRADITION AND ALUMINUM CO OF AMERICA ADOPTED A CASUAL DRESS CODE AT ITS
PITTSBURGH HEADQUARTERS IN 1991 ON ANY GIVEN DAY ABOUT HALF THE MALE
EMPLOYEES THERE WEAR SWEATERS BLAZERS AND OPENCOLLARED SHIRTS WE DON'T
EVEN THINK ABOUT THE DRESS CODE ANYMORE SAYS AN ALCOA SPOKESMAN

BUT ELSEWHERE DOUBTS PERSIST MANY BUDDING EXECUTIVES WORRY THAT A
LAIDBACK LOOK COULD JEOPARDIZE THEIR CORPORATE CLIMB BERT HAND THE
CHAIRMAN OF HARTMARX TELLS OF ONE COMPANY THAT RESCINDED ITS CASUAL FRIDAY
POLICY BY POPULAR DEMAND THE COMPANY'S HUMAN RESOURCE DIRECTOR TOLD MR
HAND THAT MALE EMPLOYEES DIDN'T WANT TO BE JUDGED BECAUSE THEY WORE THE
WRONG SWEATER 9401210108 940121 INTERNATIONAL MEXICO PLANS TO SELL 
FOUR FIRMS AS PART OF PRIVATIZATION  BY CRAIG TORRES STAFF
REPORTER OF THE WALL STREET JOURNAL

MEXICO CITY THE MEXICAN GOVERNMENT WILL PUT FOUR COMPANIES ON THE AUCTION
BLOCK THIS YEAR IN THE LAST LEG OF SOME 24 BILLION IN PRIVATIZATIONS SINCE
1987

THE COMPANIES ODDS AND ENDS OF THE PRIVATIZATION EFFORT ARE EXPECTED
TO FETCH A TOTAL OF ABOUT 260 MILLION

AFTER THAT WE'RE CLOSING SAYS JORGE SILBERSTEIN AN OFFICIAL IN THE
GOVERNMENT'S OFFICE OF PRIVATIZATION HERE

UP FOR SALE WILL BE OCEAN GARDEN A SEAFOOD TRADING COMPANY THAT FAILED TO
ATTRACT HIGH BIDS WHEN THE GOVERNMENT TRIED TO SELL IT LAST FALL THREE
PAPER MILLS A NEWSPAPER CHAIN WITH FIVE PUBLICATIONS WHICH ALSO RECENTLY
FAILED TO ATTRACT A PRICE ACCEPTABLE TO THE GOVERNMENT AND A SYSTEM OF
WAREHOUSES SITTING ON LAND ALL AROUND MEXICO WORTH LOTS AND LOTS OF MONEY
ACCORDING TO MR SILBERSTEIN

MR SILBERSTEIN SAYS THERE IS STRONG INTEREST IN OCEAN GARDEN TODAY FROM
INTERNATIONAL INVESTORS AND HE EXPECTS INTEREST FROM SOME BIG US PAPER
COMPANIES TO BE AMONG THE BIDDERS FOR THE PAPER MILLS RULES FOR THESE TWO
AUCTIONS WILL BE OUT IN ABOUT THREE WEEKS THE GOVERNMENT'S LAND HOLDINGS
MAY BE SOLD IN PIECES AND THE NEWSPAPERS WE HAVEN'T FIGURED OUT WHAT TO
DO HE SAYS

MORE INTRIGUING THAN THESE SALES IS THE QUESTION ABOUT WHAT THE GOVERNMENT
WILL DO WITH STATEOWNED OIL GIANT PETROLEOS MEXICANOS THE POWER COMPANY
AND THE RAILROADS THESE PROPERTIES ARE CONSIDERED STRATEGIC ASSETS BY THE
GOVERNMENT AND PROTECTED FROM SALE BY THE MEXICAN CONSTITUTION MR
SILBERSTEIN POINTS OUT THEN HE ADDS SMILING BUT SO WERE THE BANKS
UNTIL MEXICO CHANGED THE LAW AND SOLD THEM FOR 12 BILLION IN 1992

RIGHT NOW PEMEX ISN'T GOING TO BE SOLD MR SILBERSTEIN SAYS BUT HE
NOTES THAT THE OIL COMPANY IS ALSO LOOKING AT JOINT VENTURES AND SALES OF
SOME ASSETS ALSO THERE ARE RUMORS IN MEXICAN FINANCIAL CIRCLES THAT THE
GOVERNMENT IS SEEKING A HIGHPROFILE LEADER FOR PEMEX PERHAPS PEDRO ASPE
THE CURRENT FINANCE MINISTER AND A FORMER PRESIDENTIAL CANDIDATE MEXICAN
BANKING EXECUTIVES THINK MR ASPE OR SOMEONE OF HIS STATURE WILL PREPARE
PEMEX FOR A SALE AT SOME POINT DURING THE NEXT PRESIDENTIAL TERM

THE MEXICAN GOVERNMENT WILL ALSO PUSH FORWARD THE PRIVATIZATION OF ITS PORTS
AND AIRPORTS THIS YEAR CURRENTLY THE GOVERNMENT IS ATTEMPTING TO SET UP
PORT AUTHORITIES SO THE AIRPORTS AND PORTS CAN RUN AS INDEPENDENT
BUSINESSES THE RAILROADS AND THE POWER COMPANIES ARE ALSO TAKING SMALL
STEPS TOWARD PRIVATIZATION BY CONSIDERING JOINT VENTURES WITH PRIVATE
COMPANIES

FOR INVESTORS IN MEXICAN STOCKS THE BIG QUESTION IS WHAT THE GOVERNMENT
WILL DO WITH ITS 22 BILLION POSITION IN BANK SHARES LEFT OVER FROM THE
PRIVATIZATIONS THE LARGEST STAKE IS A 2038 18 BILLION HOLDING IN
BANCOMER MEXICO'S SECONDLARGEST BANK

THE BANCOMER STAKE CONSISTS OF SERIES L SHARES THAT AREN'T PUBLICLY TRADED
BUT INVESTMENT BANKERS SAY BANCOMER WILL LIST SHARES ON THE NEW YORK STOCK
EXCHANGE THIS SUMMER RIGHT AROUND THE TIME WHEN BANK EARNINGS AND BANK
STOCKS SHOULD BE ON THE REBOUND HERE THE GOVERNMENT ALSO HOLDS A 617
220 MILLION STAKE IN GRUPO FINANCIERO SERFIN WHICH TRADES ON THE NEW YORK
STOCK EXCHANGE AND A 2104 STAKE IN BANCO INTERNACIONAL

THE WHOLE IDEA IS FOR US TO NOT HAVE ANY SHARES MR SILBERSTEIN SAYS BUT
SALES OF BIG BLOCKS OF STOCK SUCH AS THESE ARE DELICATE BECAUSE THEY CAN
PRESSURE SHARE PRICES INVESTORS CRITICIZED THE MEXICAN GOVERNMENT FOR ITS
SECOND PUBLIC OFFERING OF TELEFONOS DE MEXICO BECAUSE THE STOCK PRICE FELL

MR SILBERSTEIN BRUSHES ASIDE THE COMPLAINTS THERE ARE BULLS BEARS AND
PIGS HE SAYS THE GOVERNMENT HAS TO TAKE PROFITS SOMEWHERE HE ADDS THAT
THE GOVERNMENT HAS NO IMMEDIATE PLANS FOR ITS 34 STAKE IN MEXICANA
AIRLINES NOTING THAT THE STOCK PRICE IS TOO LOW 9401210107 940121 WHAT'S
NEWS  WORLDWIDE

AN INDEPENDENT COUNSEL SAID HE WOULD QUESTION THE CLINTONS UNDER OATH

ROBERT FISKE JR APPOINTED TO INVESTIGATE THE PRESIDENT'S INVESTMENT IN
WHITEWATER DEVELOPMENT PROMISED A COMPLETE THOROUGH AND IMPARTIAL PROBE
OF THE AFFAIR FISKE A FORMER US ATTORNEY IN NEW YORK WAS NAMED BY
ATTORNEY GENERAL RENO WHO CALLED HIM AN EXCELLENT PROSECUTOR WHO IS
RUGGEDLY INDEPENDENT FISKE PERSONALLY WROTE THE CHARTER THAT OUTLINES HIS
DUTIES AND AUTHORIZES HIM TO INVESTIGATE WHETHER ANY INDIVIDUALS OR
ENTITIES HAVE COMMITTED A VIOLATION OF ANY FEDERAL CRIMINAL LAW RELATING TO
THE WHITEWATER CASE

FISKE SAID HE WILL INVESTIGATE THE SUICIDE OF FORMER WHITE HOUSE DEPUTY
COUNSEL FOSTER TO THE EXTENT IT INVOLVES WHITEWATERRELATED EVENTS

CALIFORNIA RESIDENTS FACE THE LIKELIHOOD OF HIGHER TAXES TO COVER SOME OF
THE REPAIRS FROM MONDAY'S QUAKE WHICH CAUSED DAMAGE OF UP TO 30 BILLION
CLINTON RELEASED AN ADDITIONAL 100 MILLION FOR ROAD REPAIRS AND AUTHORIZED
THE US GOVERNMENT TO CONTINUE PAYING 100 OF CERTAIN SHELTER AND FOOD
COSTS

RUSSIA'S FINANCE MINISTER QUIT YELTSIN'S CABINET CHARGING THAT ATTEMPTS
ARE BEING MADE TO STOP THE COURSE OF REFORM AND EVEN TO MOVE BACKWARD BUT
PRIME MINISTER CHERNOMYRDIN IN ANNOUNCING HIS NEW CABINET MINISTERS TRIED
TO REASSURE THE WORLD THAT THE GOVERNMENT WILL STICK TO ITS MARKET REFORMS

FEDERAL GOVERNMENT OFFICES ARE DUE TO REOPEN IN WASHINGTON THIS MORNING
AFTER A ONEDAY HOLIDAY AT THE REQUEST OF LOCAL UTILITIES WHICH FEARED A
MASSIVE POWER FAILURE BECAUSE OF A COLD WAVE A WEEKLONG COLD SPELL
AFFECTING THE MIDWEST NORTHEAST AND PARTS OF THE SOUTH HAS BEEN BLAMED FOR
AT LEAST 113 DEATHS

CHRISTOPHER PLANS TO UNDERSCORE US SUPPORT FOR IMPLEMENTING A PACT ON
PALESTINIAN SELFRULE WHEN HE MEETS WITH PLO CHIEF ARAFAT AND ISRAEL'S
FOREIGN MINISTER IN OSLO TOMORROW THE SECRETARY OF STATE WILL ATTEND THE
FUNERAL OF NORWEGIAN FOREIGN MINISTER HOLST WHO PLAYED A KEY ROLE IN TALKS
THAT LED TO THE PLOISRAELI ACCORD

ISRAEL'S RABIN DENIED HE EVER PLEDGED TO RETAIN THE GOLAN HEIGHTS AND HE
SAID THAT A DECISION ON EXCHANGING THE STRATEGIC PLATEAU FOR PEACE WITH
SYRIA WOULD HAVE TO BE MADE THIS YEAR THE PRIME MINISTER'S STATEMENTS
APPEARED TO BE PART OF A CAMPAIGN TO GRADUALLY ACCUSTOM ISRAELIS TO THE
PROSPECT OF LOSING THE TERRITORY

JAPAN'S PARLIAMENT WAS POISED TO VOTE TODAY ON PRIME MINISTER HOSOKAWA'S
PACKAGE OF POLITICAL REFORM BILLS WHICH WOULD ALTER THE RULES THAT HAVE
GOVERNED JAPANESE POLITICS SINCE WORLD WAR II THE VOTE IS EXPECTED TO BE
CLOSE WITH LIKELY DEFECTIONS THREATENING THE GOVERNMENT'S THIN
PARLIAMENTARY MAJORITY

CLINTON'S FISCAL 1995 BUDGET WILL PROPOSE SHIFTING HUD RESOURCES TOWARD
CARING FOR THE HOMELESS AND AWAY FROM PUBLICHOUSING PROGRAMS ALTHOUGH
DETAILS HAVEN'T BEEN DISCLOSED PUBLICHOUSING ADVOCATES ALREADY ARE
PROTESTING THE EXPECTED CUTS IN THEIR PROGRAMS

THE EUROPEAN PARLIAMENT CALLED FOR THE DISMISSAL OF LORD OWEN THE EUROPEAN
UNION'S MEDIATOR TO THE YUGOSLAV PEACE PROCESS SAYING THAT HE HAS BEEN
INEFFECTIVE THE PARLIAMENT WHOSE OPINION ISN'T BINDING ON THE EU ALSO
URGED THE USE OF MILITARY INTERVENTION TO PROTECT BOSNIAN CIVILIANS OWEN
SAID HE HAD NO INTENTION OF QUITTING

CHINA HAS AGREED TO ENFORCE COMPLIANCE WITH INTERNATIONAL COPYRIGHT LAWS IN
ORDER TO CURTAIL THE PRODUCTION OF COUNTERFEIT COMPACT DISKS TREASURY
SECRETARY BENTSEN SAID AFTER MEETINGS IN BEIJING ALSO CHINA AND THE US
REACHED A VERBAL ACCORD AIMED AT PREVENTING THE EXPORT OF GOODS MADE WITH
PRISON LABOR HE SAID

HONG KONG'S GOVERNOR ACCUSED CHINA OF BEING IRRATIONAL IN TALKS ON THE
BRITISH COLONY'S FUTURE AND INDICATED BRITAIN WOULDN'T MAKE ANY MORE
CONCESSIONS PATTEN ALSO TOLD A PARLIAMENTARY PANEL IN LONDON THAT BRITAIN
WOULD PUBLISH ITS VERSION OF WHY TALKS WITH CHINA HAD BROKEN DOWN IF THE
CHINESE DON'T RESUME NEGOTIATIONS

VIETNAM AND THE US AGREED TO HOLD TALKS AIMED AT SETTLING 250 MILLION IN
US CLAIMS STEMMING FROM THE 1975 COMMUNIST VICTORY SEPARATELY THE
CLINTON ADMINISTRATION IS EXPECTED TO RELEASE SOON A US INTELLIGENCE
ANALYSIS THAT COULD LEAD TO THE LIFTING OF AN EMBARGO AGAINST HANOI
9401210106 940121 AN EXPORT CONTROL PLAN SADDAM WILL LOVE  BY
THOMAS E CROCKER

IN THE COMING WEEKS A YEARLONG EFFORT BY THE CLINTON ADMINISTRATION SHOULD
CULMINATE IN THE SCRAPPING OF COCOM THE 17MEMBER COORDINATING COMMITTEE ON
MULTILATERAL EXPORT CONTROLS THE EXPORT CONTROL FRAMEWORK THAT HAS
DOMINATED EASTWEST RELATIONS FOR THE PAST 45 YEARS IT MAY WELL BE TIME TO
REPLACE COCOM THE ROOTS OF WHICH WERE IN THE COLD WAR BUT A PARTIAL OR
POOR REPLACEMENT OF THE NONPROLIFERATION FRAMEWORK THAT HAS WORKED WELL FOR
NEARLY HALF A CENTURY COULD RESULT IN US BUSINESS LOSING BILLIONS OF
DOLLARS OF HIGHTECH EXPORTS IN SUCH CRITICAL INDUSTRIES AS COMPUTERS
TELECOMMUNICATIONS AND BIOTECHNOLOGY

ALTHOUGH THE PRESIDENT IS EXPECTED TO FINALIZE THE TERMS OF COCOM'S
SUCCESSOR SOON THE ADMINISTRATION'S PLANS HAVE BEEN FAR FROM CLEAR BUT AN
OUTLINE IS EMERGING IN PARTICULAR THE ADMINISTRATION APPEARS READY TO
ABANDON A KEY ASPECT OF THE SYSTEM THAT ENSURED A LEVEL PLAYING FIELD FOR
EXPORTERS FROM ALL MEMBER COUNTRIES IT ALSO APPEARS READY TO CONTINUE TO
IMPOSE ON US INDUSTRY SIGNIFICANT UNILATERAL RESTRICTIONS ON CERTAIN
EXPORTS

AS A RESULT WESTERN EUROPEAN AND JAPANESE COMPETITORS COULD MOVE INTO
MARKETS IN THE FORMER SOVIET STATES AND CHINA THAT WILL REMAIN OFFLIMITS TO
US COMPANIES THESE COMPETITORS COULD SUPPLANT THE US AS THE
SUPPLIEROFCHOICE IN THESE MARKETS THE IMPACT ON THE PROFITABILITY AND
ULTIMATE TECHNOLOGICAL LEADERSHIP OF US EXPORTERS FROM INTERNATIONAL
BUSINESS MACHINES CORP AND AMERICAN TELEPHONE & TELEGRAPH CO TO STARTUP
VENTURES COULD BE SIGNIFICANT

TO UNDERSTAND THE PROBLEM IT HELPS TO TAKE A LOOK AT HOW COCOM HAS WORKED
ONE OF ITS MOST IMPORTANT FEATURES HAS BEEN ITS RULE OF UNANIMITY OR
SINGLEMEMBER VETO IF A US COMPANY WANTED TO SELL A CONTROLLED ITEM
SUCH AS AN ADVANCED COMPUTER TO A WARSAW PACT COUNTRY COCOM FIRST HAD TO
APPROVE THE EXPORT IMPORTANTLY COCOM OPERATED ON A VETO BASIS UNDER WHICH
ANY SINGLE MEMBER COULD BLOCK THE EXPORT OF A CONTROLLED ITEM TO A TARGET
COUNTRY

THUS IF THE SOVIET UNION OR NORTH KOREA OR CHINA FACED AN EMBARGO OF A
CERTAIN KIND OF TECHNOLOGY SAY OPTICAL FIBER CABLE IT COULD NOT PURCHASE
IT FROM ANY COCOM MEMBER IF GERMANY WANTED TO SELL TECHNOLOGY TO THE SOVIET
UNION THE US OR ANY OTHER MEMBER OF COCOM COULD SINGLY BLOCK THE MOVE
BUT JUST AS EASILY GERMANY COULD UNILATERALLY BLOCK A US SALE FOR ITS
MEMBERS THE SYSTEM HAS BEEN RESTRICTIVE AND DRACONIAN BUT FAIR

THE CLINTON ADMINISTRATION'S PLANS FOR A SUCCESSOR REFLECT CHANGES IN THE
POSTCOLD WAR WORLD INSTEAD OF FOCUSING ON A COMMUNIST BLOC ENEMY THE
POLICY AIMS TO CREATE A SUCCESSOR REGIME THAT WILL CONTROL TECHNOLOGY
TRANSFERS BY AND TO ROGUE STATES LAST SUMMER THE ADMINISTRATION PLEDGED
TO ENLIST COCOM ALLIES IN A COUNTERPROLIFERATION REGIME TO ISOLATE NATIONS
SUCH AS IRAN IRAQ LIBYA AND NORTH KOREA HOWEVER MANY ISSUES WERE NOT
ADDRESSED INCLUDING THE EXACT RELATIONSHIP OF THE NEW REGIME TO OTHER
EXISTING MULTILATERAL NONPROLIFERATION REGIMES SUCH AS THE AUSTRALIA GROUP
WHICH DEALS WITH CHEMICAL AND BIOLOGICAL WEAPONS THE NUCLEAR SUPPLIERS
GROUP AND THE MISSILE TECHNOLOGY CONTROL REGIME

NONETHELESS US OFFICIALS HAVE ACKNOWLEDGED THAT THEY HAVE ABANDONED
TRYING TO ACHIEVE THE SINGLEMEMBER VETO IN THE SUCCESSOR ORGANIZATION IN
ITS PLACE THEY FORESEE CLEARLY DEFINED CRITERIA CONCERNING ADHERENCE TO
EXPORT CONTROLS AND NONPROLIFERATION NORMS WHICH IS BUREAUCRATIC JARGON
FOR A WEAKER REGIME WHILE PURSUING MULTILATERAL AGREEMENTS IN FRAMING A
SUCCESSOR REGIME THE CLINTON ADMINISTRATION HAS TELLINGLY RESERVED THE
RIGHT OF THE US TO ACT UNILATERALLY WHERE NECESSARY THUS EVEN THOUGH
THE ADMINISTRATION HAS LIBERALIZED CERTAIN EXPORT CONTROLS IN THE PAST YEAR
IT HAS NOT YET PHASED OUT US UNILATERAL CONTROLS

THE PROBLEM IS THAT WITHOUT THE UNANIMITY FEATURE MEMBERS OF THE NEW
CONTROL REGIME MAY INDEED BE ABLE TO EXPORT SENSITIVE TECHNOLOGY TO THE
FORMER SOVIET STATES AND EVEN TO THE ROGUE STATES IF A MEMBER FOR
EXAMPLE UNILATERALLY DECIDES THAT EXPORTING A CERTAIN PRODUCT TO LIBYA IS
LEGAL UNDER THE NEW RULES IT WILL BE DIFFICULT FOR OTHER COUNTRIES TO
STOP IT

IS THERE A BETTER SOLUTION ONE WOULD BE TO COORDINATE CAREFULLY THE
ELIMINATION OF THE RULE OF UNANIMITY WITH THE PHASE OUT OF UNILATERAL
CONTROLS SO THAT US EXPORTERS ARE NOT DISADVANTAGED IN ADDITION SOME
US INDUSTRY GROUPS HAVE ADVOCATED AMALGAMATION OF THE AUSTRALIA GROUP AND
THE OTHER NONPROLIFERATION ORGANIZATIONS INTO COCOM'S SUCCESSOR FOR PURPOSES
OF SIMPLICITY AND TRANSPARENCY REGRETTABLY THIS DOES NOT APPEAR TO BE
OCCURRING

IT WOULD BE A SHAME NOT TO UTILIZE FULLY COCOM'S MULTILATERAL SECRETARIAT
THAT WAS BUILT UP OVER THE YEARS WITH ITS SINGULAR CREDIBILITY AND
COMPETENCE IN THE EVALUATION OF INTELLIGENCE AND DEVELOPMENT OF LISTS OF
CONTROLLED TECHNOLOGIES THIS EXPERTISE WOULD APPEAR TO BE IMPORTANT AS
EXPORT CONTROL REGIMES EVOLVE TOWARD MORE REFINED CONTROL OF SOCALLED
CHOKE POINT TECHNOLOGIES THAT IS A SHORT LIST OF TECHNOLOGIES CRITICAL
TO AN ADVERSARY'S WARMAKING ABILITY AND AS RUSSIA AND THE OTHER FORMER
SOVIET STATES STRIVE TO DEVELOP THEIR OWN EXPORT CONTROL REGIMES

MR CROCKER IS AN INTERNATIONAL TRADE LAWYER IN WASHINGTON 9401210105
940121 GERMAN FIRM TO SHED UNITS IN STREAMLINING  
METALLGESELLSCHAFT TO DROP NUMEROUS' HOLDINGS SEES WORKFORCE CUTS 
 BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL

FRANKFURT METALLGESELLSCHAFT AG PLANS A SERIES OF DIVESTITURES AS IT
CHANGES INTO A STREAMLINED HOLDING COMPANY OF THREE OPERATING DIVISIONS FOR
ITS TRADING ENGINEERING AND CHEMICALS ACTIVITIES

CHAIRMAN KAJO NEUKIRCHEN THE TURNAROUND SPECIALIST WHO IS RESTRUCTURING THE
GERMAN COMPANY AFTER ITS NEARBANKRUPTCY LAST WEEK SAID THAT THE INDUSTRIAL
CONCERN WILL PART WITH NUMEROUS DOMESTIC AND FOREIGN HOLDINGS IN THE
MEDIUM TERM MR NEUKIRCHEN ALSO SAID THE WORK FORCE OF 58000 WILL HAVE TO
BE SUBSTANTIALLY REDUCED

PLANNED DIVESTITURES INCLUDE METALLGESELLSCHAFT'S SMALL STAKE OF LESS THAN
10 IN METHANOLPRODUCER METHANEX CORP OF VANCOUVER BRITISH COLUMBIA AND
THE KORF STEEL OPERATIONS IN BRAZIL THE OFFICIAL AGAIN LISTED
METALLGESELLSCHAFT'S 49 INTEREST IN KOLBENSCHMIDT AG A GERMAN AUTO PARTS
SUPPLIER AS ANOTHER HOLDING UP FOR SALE

AMONG ITS TRADING ACTIVITIES METALLGESELLSCHAFT INTENDS TO RESTRUCTURE OR
SELL LOSSMAKERS AND CAPITALINTENSIVE UNITS LYING OUTSIDE OF THE COMPANY'S
CORE OPERATIONS

MR NEUKIRCHEN WAS MORE SPECIFIC IN LISTING THE COMPANIES THAT
METALLGESELLSCHAFT INTENDS TO KEEP NOT FOR SALE HE SAID ARE

 METALLBANK AG THE GROUP'S MERCHANT BANKING UNIT

THE COMPANY PREVIOUSLY HAD MENTIONED METALL MINING CORP AN INTERNATIONAL
MINING CONCERN BASED IN TORONTO AS A SPINOFF CANDIDATE A
METALLGESELLSCHAFT SPOKESMAN SAID THE COMPANY'S MAJORITY HOLDING IN MMC
WASN'T INCLUDED ON MR NEUKIRCHEN'S LATEST LIST BECAUSE OF LEGAL
CONSIDERATIONS THAT COULD DELAY ITS SALE IN THE LONGER TERM HOWEVER HE
SAID METALLGESELLSCHAFT MAY NOT BE ABLE TO AFFORD THE CAPITAL DEMANDS OF THE
BIG MINING GROUP

THE SPOKESMAN SAID THE PLANNED DIVESTITURES WERE ONLY A PARTIAL LIST OF WHAT
THE COMPANY PLANS TO UNLOAD IN COMING MONTHS HE SAID MORE DETAILS ON
PLANNED DIVESTITURES ARE LIKELY TO BE ANNOUNCED AT A NEWS CONFERENCE NEXT
MONTH THIS IS TO COME BETWEEN A FEB 11 MEETING OF THE COMPANY'S
SUPERVISORY BOARD AND A FEB 24 SHAREHOLDERS MEETING IN WHICH MANAGEMENT
WILL SEEK APPROVAL ON A CAPITAL INCREASE TO RAISE 14 BILLION MARKS 8018
MILLION

FRANKFURT ANALYSTS SAID THE ROUGH OUTLINE OF THE FUTURE METALLGESELLSCHAFT
APPEARED TO BE GOING IN THE RIGHT DIRECTION BUT JUDGED THAT MUCH MORE WOULD
BE NEEDED TO RESTORE INVESTOR CONFIDENCE IN THE STRIKEN COMPANY

AT THE CLOSE OF TRADING ON THE FRANKFURT STOCK EXCHANGE THURSDAY
METALLGESELLSCHAFT WAS DOWN 28 AT 238 MARKS FROM A DAYEARLIER 245 MARKS
THE STOCK WAS LATER QUOTED AT 237 MARKS IN AFTERHOURS COMPUTER TRADING

METALLGESELLSCHAFT'S SHARES ARE STILL DOWN NEARLY 50 AFTER SENIOR
MANAGEMENT WAS SACKED IN DECEMBER ON DISCLOSURES OF 18 BILLION MARKS IN
OPERATING LOSSES AND ANOTHER 15 BILLION MARKS IN POTENTIAL LOSSES FROM OIL
TRADING THE COMPANY WAS PULLED BACK FROM BANKRUPTCY ON SATURDAY AFTER BANKS
AGREED TO A 34 BILLIONMARK FINANCIAL RESCUE PLAN THE PACKAGE INCLUDES A
13 BILLION MARK DEBTFOREQUITY SWAP 700 MILLION MARKS IN NEW CREDITS AND
THE 14 BILLIONMARK SHARE CAPITAL INCREASE

IT'S OBVIOUS THE COMPANY WANTS TO CONCENTRATE ITS OPERATIONS BUT THEY'LL
HAVE TO SHOW MORE SAID MICHAEL BROEKER WHO FOLLOWS METALLGESELLSCHAFT FOR
BANK JULIUS BAER IN FRANKFURT THE BANKS GAVE THEM NEW MONEY ON THE
CONDITION THAT THEY SELL OFF OPERATIONS TO RAISE CASH 9401210104 940121
ENVIRONMENT  BY DAVE KANSAS

THE DEVELOPMENT OF URBAN MINIMILLS THAT PROCESS RECYCLED PAPER COULD FILL A
KEY MARKETING GAP

SEVERAL COMPANIES ARE DISCUSSING THE BUILDING OF SMALL MILLS CLOSE TO URBAN
AREAS TO TAKE ADVANTAGE OF GROWING DEMAND FOR RECYCLED PAPER PRODUCTS BY
LOCATING CLOSE TO MAJOR RECYCLING CENTERS AND AFTERMARKETS THE SMALLER
MILLS COULD TAKE ADVANTAGE OF LOWER TRANSPORTATION COSTS

HOFFMAN ENVIRONMENTAL SYSTEMS GREEN BAY WIS TOUTS A NODISCHARGE WATER
SYSTEM THAT WOULD MAKE URBAN LOCATIONS MORE FEASIBLE PAPER MILLS WHICH ARE
GENERALLY LOCATED CLOSER TO VIRGIN TIMBER SUPPLIES USUALLY REQUIRE A LARGE
BODY OF WATER FOR PAPER PROCESSING

A CONSORTIUM OF THREE COMPANIES INCLUDING HOFFMAN PLANS TO BEGIN BUILDING
THE URBAN MILLS THIS YEAR BELOIT CORP WOULD CONSTRUCT THE MINIMILLS AND
OGDEN PROJECTS WOULD OPERATE THE FACILITIES THE MILLS WOULD RECYCLE PAPER
USED IN MAKING CORRUGATEDCARDBOARD BOXES

PART OF THE RECYCLING MINIMILL PROGRAM HOWEVER PRESENTS A BIT OF A
QUANDARY FOR SOME ENVIRONMENTALISTS IN SOME INSTANCES THE COMPANIES WANT
TO LINK THE MILLS TO INCINERATOR PLANTS THEREBY TAKING ADVANTAGE OF CHEAP
ENERGY COSTS SEVERAL ENVIRONMENTAL GROUPS SAY INCINERATORS DISCOURAGE
RECYCLING EFFORTS AND EMIT HARMFUL FUMES

STILL WILLIAM WHITMAN SENIOR VICE PRESIDENT AT OGDEN PROJECTS SEES
SEVERAL BENEFITS TO THE MINIMILLS BECAUSE THEY'RE ALREADY IN THE URBAN
AREA THEY HAVE TREMENDOUS TRANSPORTATIONCOST ADVANTAGES AND THE
ZEROWATER DISCHARGE CONCEPT WILL ALSO EASE ENVIRONMENTAL PROBLEMS HE
SAYS IT LOOKS ECONOMICALLY FEASIBLE AND IN SOME WAYS IT SEEMS THAT IF WE
DON'T DO THIS SOMEBODY ELSE WILL

OTHERS ARE GETTING INVOLVED TOO SITHE ENERGIES A NEW YORKBASED
INDEPENDENT POWER PRODUCER RECENTLY CONTRACTED TO SELL POWER TO A
LINERBOARDRECYCLING PLANT BEING BUILT BY BELOIT NEAR OSWEGO NY

IN THIS COUNTRY THE LARGE PAPER COMPANIES REMAIN LARGELY COMMITTED TO
VIRGIN PAPER BUT THEIR CONSUMERS AREN'T COMMITTED TO VIRGIN PAPER SAYS
ROGER HOFFMAN PRESIDENT OF HOFFMAN ENVIRNONMENTAL WE PLAN TO TAKE
ADVANTAGE OF THAT GAP IN THE MARKET

WIND POWER IS SURGING IN COLDWEATHER AREAS AS ICY HURDLES ARE CLEARED

MOST OF THE WINDPOWER ADVANCES IN THE US HAVE CENTERED ON WARMERCLIMATE
AREAS ADVOCATES HOWEVER ARE INTERESTED IN THE ENERGY POTENTIAL OF THE
CHILLIER UPPER MIDWEST SOMETIMES CALLED THE SAUDI ARABIA OF WIND POWER

BUT COLDWEATHER WIND FARMS FACE DIFFERENT OBSTACLES THAN DESERT WIND FARMS
FRIGID TEMPERATURES CAN AFFECT MACHINERY AND ICE BUILDUP ON THE BLADES CAN
CAUSE STOPPAGES

WE'VE LEARNED THAT CERTAIN COMPONENTS SUCH AS MACHINERY LUBRICANTS HAD TO
BE MODIFIED FOR THE COLDER WEATHER SAYS EDWARD NEUHAUSER A SPECIALIST
CONCENTRATING ON RENEWABLE RESOURCES AT NIAGARA MOHAWK POWER SYRACUSE NY

TO COMBAT ICING PROBLEMS TURBINE BLADES ARE PAINTED BLACK TO ABSORB MORE
SUNLIGHT SOMETIMES THE TURBINES WILL GO THROUGH RAPID STOPANDSTART
SEQUENCES OR OPERATE AT IRREGULAR RATES TO SHAKE OFF ICE BUILDUP

THE PROMISE OF COLDWEATHER WIND POWER HAS PIQUED INTEREST THROUGHOUT THE
NORTHERN TIER OF THE COUNTRY IN MINNESOTA A STATE KNOWN FOR ITS BRUTAL
WINTERS NORTHERN STATES POWER ST PAUL PLANS TO BUILD A WIND FARM IN THE
SOUTHWESTERN REGION OF THE STATE NEW ENGLAND ELECTRIC SYSTEM JOINED A
CONSORTIUM TO DEVELOP A WIND FARM IN MAINE AND IN VERMONT GREEN MOUNTAIN
POWER ALREADY IS OPERATING A SMALL WIND PROJECT

TWO YEARS AGO WE WOULD HAVE TALKED ABOUT HAWAII AND CALIFORNIA SAYS
MICHAEL MARVIN OF THE AMERICAN WIND ENERGY GROUP BUT NOW WE HAVE AN
ENTIRE STRING OF PROJECTS IN COLD SNOWY AREAS

STILL WIND POWER REMAINS A SMALL ELEMENT OF THE NATION'S POWER PORTFOLIO
MAKING UP ABOUT 01 OF THE COUNTRY'S INSTALLED CAPACITY

WASTETREATMENT RESEARCHERS ARE EXPLOITING NEW THERMAL TECHNIQUES

SEVERAL COMPANIES ARE WORKING ON METHODS TO BREAK DOWN HAZARDOUS WASTE INTO
REUSABLE ELEMENTS TO AVOID THE TRADITIONAL BURN LANDFILL OR DO NOTHING
APPROACH MOST OF THE NEW THERMAL TECHNOLOGIES DON'T BURN THE WASTE BUT
INSTEAD CREATE HIGHHEAT ENVIRONMENTS TO BREAK DOWN CHEMICAL COMPOUNDS

TITAN TECHNOLOGIES ALBUQUERQUE NM USES CATALYSTS TO BREAK DOWN TIRES
INTO OIL CARBON BLACK AND ASH FLAMES NEVER TOUCH THE TIRE SAYS RON
WILDER CHIEF OPERATING OFFICER OF TITAN WHICH HAS A PROTOTYPE PLANT IN
BRADLEY OKLA AND IS BUILDING TWO PLANTS IN SOUTH KOREA THE COMPANY'S
PROCESS USES THE EMITTED GASES FROM THE TIRES TO FUEL THE HEATING PROCESS
THEREBY ELIMINATING EMISSIONS PROBLEMS HE SAYS

TITAN'S TECHNOLOGY COULD HELP DEAL WITH THE NATION'S VAST TIREWASTE
PROBLEM WHICH IS PARTIALLY ADDRESSED NOW BY SHREDDING TIRES AND PUTTING
THEM IN ROADPAVING MIXTURES BUT ENVIRONMENTALISTS EXPRESS CONCERN ABOUT
THE DISPOSAL OF THE ASH AND THE QUALITY OF THE END PRODUCTS SUCH AS CARBON
BLACK WHICH IS OFTEN USED IN SHOE HEELS

SEVERAL OTHER COMPANIES PUSH SPECIALIZED WASTE SOLUTIONS INCLUDING MOLTEN
METAL TECHNOLOGIES WALTHAM MASS THE COMPANY USES MOLTEN METAL BATHS TO
BREAK DOWN HAZARDOUS WASTES INTO THEIR ELEMENTAL PARTS ZAPIT TECHNOLOGY
SANTA CLARA CALIF USES ELECTRON BEAMS TO BREAK DOWN CONTAMINANT MOLECULES
IN SOIL AIR AND GROUND WATER INTO CARBON DIOXIDE WATER AND SALT

THE ENVIRONMENTAL DEFENSE FUND OFFERS A CITIZENSSERIES PAMPHLET ON LUST
LEAKING UNDERGROUND STORAGE TANKS  VITAMIN D ALCHEMY ROCHESTER
INSTITUTE OF TECHNOLOGY PROFESSORS RECEIVE FEDERAL AND STATE GRANTS TO TRY
TO TURN MILK CARTONS INTO ETHANOL 9401210103 940121 LEISURE & ARTS 
BOOKSHELF AN AUTHOR REFLECTS ON SIX DECADES OF SILENCE  BY LEE
LESCAZE

IF PRIZES FOR WRITERS CAME IN THE SAME CATEGORIES AS THOSE FOR ATHLETES
HENRY ROTH WOULD WIN COMEBACK NOVELIST OF THE YEAR HANDS DOWN

MAYBE OF THE CENTURY

MERCY OF A RUDE STREAM VOLUME 1 A STAR SHINES OVER MT MORRIS PARK ST
MARTIN'S PRESS 290 PAGES 23 IS APPEARING 60 YEARS AFTER HIS FIRST NOVEL
THE WIDELY ACCLAIMED CALL IT SLEEP EVEN MANY OF HIS GREATEST FANS FIGURED
THEY WOULD NEVER HEAR FROM HIM AGAIN LOTS THOUGHT HE WAS DEAD AND OF
COURSE MANY ARE DEAD THEMSELVES

DURING HIS SIX DECADES OF NEARTOTAL SILENCE HE WROTE A FEW SHORT STORIES
AND ARTICLES MR ROTH HAD JOBS AS A WOODSMAN SCHOOLTEACHER ATTENDANT IN
A STATE MENTAL HOSPITAL AND WATERFOWL FARMER AMONG OTHERS BUT SINCE 1979
HE HAS BEEN WRITING AGAIN AND WE ARE TOLD THAT MERCY OF A RUDE STREAM IS
ALREADY SIX VOLUMES LONG

SO ON THE BASIS OF VOLUME ONE AS THE SPORTS ANNOUNCERS WOULD ASK CAN
87YEAROLD MR ROTH STILL CUT IT

I THINK SO MERCY OF A RUDE STREAM IS A REWORKING AND FURTHER DEVELOPMENT
OF THE JEWISH NEW YORK BOYHOOD THAT MR ROTH DESCRIBED IN CALL IT SLEEP
MR ROTH SO PASSIONATELY FELT HIS CHILDHOOD SO LOVED IT UNLOVELY AS IT
WAS THAT HIS PAGES WRITTEN IN OLD AGE ARE REMARKABLY FRESH AND TOUCHING

FOR LONG PASSAGES THEY ARE SCARCELY NOVELISTIC READING MORE LIKE
AUTOBIOGRAPHY THE NOVEL FOLLOWS A STRAIGHT TIME LINE NOT MUCH HAPPENS AND
NOTHING IS DONE TO INTENSIFY THE EFFECT OF WHAT LITTLE PLOT THERE IS IN THE
MTV AGE IT IS SLOW BUT MR ROTH'S VOICE IS ATTRACTIVE WHILE ALSO SKILLFULLY
EVOKING A TIME AND PLACE LONG GONE

THE NOVEL IS THE STORY OF A JEWISH BOY IRA STIGMAN GROWING UP IN A LARGELY
IRISH HARLEM NEIGHBORHOOD AND KEENLY RESENTING HIS FAMILY'S MOVE FROM THE
ALLJEWISH LOWER EAST SIDE BLOCK THAT HE LOVED

IT OPENS IN THE SUMMER OF 1914 AT TIMES THE DICTION IS 1914 MR ROTH USES
WORDS SUCH AS ERE FOR BEFORE HIE FOR GO AND VIANDS FOR MEATS

AS IN CALL IT SLEEP THE BOY LOVES HIS MOTHER AND HATES HIS MEAN COLD
FAILURE OF A FATHER ALTHOUGH IRA IS CONFRONTED SEVERAL TIMES BY MALES
WANTING TO INITIATE HIM SEXUALLY HE IS EXTREMELY SHY AND ACCENTUATING THE
OEDIPAL SITUATION ONLY FINDS HIMSELF GENUINELY EXCITED ONCE WHILE SHARING
HIS MOTHER'S BED DURING ONE OF HIS FATHER'S ABSENCES

MR ROTH INTERRUPTS IRA'S STORY PERIODICALLY WITH THE VOICE OF AN ELDERLY
AUTHOR NAMED IRA IN THE 1980S TALKING TO HIS COMPUTER ABOUT THE WORK IN
PROGRESS AND ALSO ABOUT CONTEMPORARY AFFAIRS

THE MOST COMPELLING OF THESE PASSAGES TOUCH ON THE AUTHOR'S LONG SILENCE
HIS TONE IS RUEFUL LAMENTING LOST YEARS HOW MUCH BETTER HE WOULD REMEMBER
THIS MATERIAL THE AGED WRITER SAYS IF HE HAD USED IT EARLIER AT ANOTHER
POINT FOR ALMOST FIVE DECADES YOU WERE WELLNIGH IMMOBILIZED BY YOUR
INABILITY TO GO BEYOND CHILDHOOD HIS MUSE THE COMPUTER TELLS HIM

THAT WAS PART OF THE STORY MR ROTH HAS SAID ELSEWHERE THAT HIS INABILITY
TO WRITE ALSO CAME FROM HIS CONFUSION OVER THE USES OF LITERATURE WHEN
CALL IT SLEEP APPEARED IN 1934 IT GOT MIXED REVIEWS MR ROTH WAS A
COMMUNIST BUT THE LEFT FOUND HIS NOVEL INSUFFICIENTLY POLITICALLY CORRECT
WHY THIS MAUNDERING ABOUT A YOUNG BOY WHEN THERE WERE HEROIC PROLETARIAN
NOVELS TO WRITE CRITICS ASKED

MR ROTH TRIED TO MARRY HIS POLITICS AND HIS TALENT ONLY TO FIND THEY
WOULDN'T COHABIT HIS EFFORT TO FOLLOW CALL IT SLEEP WITH A PROLETARIAN
NOVEL ENDED YEARS LATER IN A BURNT MANUSCRIPT AND CALL IT SLEEP ONLY
ACHIEVED ITS WIDESPREAD ACCLAIM WHEN IT WAS REPUBLISHED IN THE '60S AND SOLD
MILLIONS OF PAPERBACK COPIES

WHAT SAVED THE ELDERLY AUTHOR OF MERCY OF A RUDE STREAM DURING HIS LONG
NONWRITING YEARS HE TELLS US AND WHAT MADE IT POSSIBLE FOR HIM TO START
AGAIN WAS THE DEVOTION OF HIS WIFE WHOM HE CALLS M EACH SHORT PASSAGE
THAT MENTIONS M IS SUFFUSED WITH LOVE IF LIFE HIS LIFE WERE WORTH
LIVING IT WAS SHE WHO MADE IT SO HE WRITES THE BOOK'S TITLE IS TAKEN
FROM SHAKESPEARE'S HENRY VIII THE SHAKESPEARIAN PASSAGE DESCRIBES A MAN
SWEPT AWAY BY THE STREAM BUT FOR MR ROTH THE WORD MERCY IS LITERAL
AFTER A ROUGH RIDE LIFE SHOWED HIM MERCY

CALL IT SLEEP WAS STEEPED IN JOYCE SOME HAVE CALLED IT THE MOST
SUCCESSFUL AMERICAN JOYCEAN NOVEL NOW HOWEVER THE ARTIST IS A VERY OLD
MAN AND IN HIS OLD AGE HE HAS CAST OFF LITERARY DEVICE IN FAVOR OF THE
PLAINEST OF STYLES

EVEN AS HE WROTE THIS FIRST VOLUME HE WAS SO LIMITED BY RHEUMATOID
ARTHRITIS THAT HIS WIFE HAD TO LIFT HIM TO A SITTING POSITION EACH MORNING

MR ROTH'S WIFE MURIEL DIED IN 1990 SINCE THEN OTHERS HAVE HELPED HIM TO
HIS COMPUTER

THE APPROACH OF DEATH IS MUCH IN THE WRITER'S MIND SOME 10 YEARS AGO HE
ALREADY CALLED HIMSELF AN OLD MAN SCRIVENING TO WARD OFF TIME YET TIME
AT THE END OF HIS LIFE HAS BEEN GENEROUS TO MR ROTH

AS THE BOOK ENDS IRA IS ONLY 14 NO WONDER MR ROTH HAD MANY MORE VOLUMES
TO WRITE AFTER THIS ONE I LOOK FORWARD TO THE OTHER VOLUMES OF MERCY OF A
RUDE STREAM WITH HOPE THAT HE FOUND WAYS TO MAKE ART OF LIFE AFTER
CHILDHOOD 9401210102 940121 POTOMAC WATCH WHITE HOUSE TRIES TO
COOK' BUSINESS REVOLT  BY PAUL A GIGOT

EARLIER TODAY I RECEIVED A CALL FROM THE WHITE HOUSE  

THAT'S HOW LODWRICK COOK CHAIRMAN OF ATLANTIC RICHFIELD CO ARCO AND PAL
OF PRESIDENT CLINTON BEGAN A JAN 12 FAXED LETTER URGING HIS FELLOW CEOS
NOT TO OPPOSE THE CLINTON HEALTH CARE PLAN

SO FAR HE'S FAILED BUT THE OPERA ISN'T OVER UNTIL THE FIRST LADY SINGS
LET'S PEEK BEHIND THE CURTAIN AT WHAT HAS BECOME A FRANTIC WHITE HOUSE
LOBBYING CAMPAIGN TO PREVENT FURTHER POLITICAL DAMAGE TO ITS REDESIGN OF
ONESEVENTH OF THE US ECONOMY COLLARS MUST BE TIGHTENING IN THE WARROOM

KEEP IN MIND THAT ONE SECRET TO MR CLINTON'S POLITICAL SUCCESS HAS BEEN AT
LEAST SOME BUSINESS SUPPORT IN 1992 HE REELED IN SILICON VALLEY
ENTREPRENEURS UPSET WITH DARMANOMICS DURING LAST YEAR'S TAX BATTLE HE
ENLISTED 68 BIGTIME CEOS TO PROVIDE THE POLITICAL COVER OF A WHITE HOUSE
PHOTOOP ARCO'S MR COOK WAS ONE OF THEM

MR CLINTON HAS A SIMILAR STRATEGY THIS YEAR FOR HEALTH CARE ONLY MORE SO
BECAUSE VOTERS REFUSE TO PAY HIGHER TAXES BUSINESS IS SUPPOSED TO BE THE
TAX COLLECTOR FOR THE HEALTH CARE STATE THIS IS DONE IN THE CLINTON PLAN
THROUGH THE EMPLOYER MANDATE WHICH MEANS THAT BUSINESSES MUST PROVIDE
HEALTH INSURANCE TO ALL WORKERS WHILE GOVERNMENT SETS ALL OF THE RULES IT'S
A SLY SCHEME OF STEALTH FINANCING BECAUSE IT DISGUISES STATE CONTROL AND
RESPONSIBILITY THROUGH A BUSINESS MIDDLEMAN

BUT SUCH A SCHEME WON'T SELL IN CONGRESS UNLESS ENOUGH BUSINESSES VOLUNTEER
TO PLAY TAX COLLECTOR SMALL BUSINESS HIT THE BARRICADES AGAINST THE PLAN
EARLY SO THE WHITE HOUSE HAS BEEN COUNTING ON BIG BUSINESS WHICH IT HOPES
IT HAS LURED WITH SPECIAL FAVORS SUCH AS A 6 BILLIONAYEAR BRIBE FOR
EARLYRETIREE HEALTH BENEFITS WELL MAYBE NOT

THE BIGGEST SHOCK FOR THE CLINTONS IS OPPOSITION FROM THE BUSINESS
ROUNDTABLE WHICH IS HARDLY A BASTION OF REAGANITE FREE ENTERPRISE THE
ROUNDTABLE INCLUDES THE BIGGEST OF THE BIG IN CORPORATE AMERICA ESTABLISHED
MANAGERS MORE THAN RISKTAKERS ITS CEOS ARE RESPECTED POOHBAHS WHO DON'T
LIKE POLITICAL FISTICUFFS

YET WHEN THE ROUNDTABLE'S HEALTH CARE TASK FORCE INSPECTED THE CLINTON PLAN
IT VOTED 141 TO REJECT IT CHRYSLER WHICH GETS A BIG BRIBE IN THE CLINTON
PLAN WAS THE DISSENTER INSTEAD THE TASK FORCE THREW ITS SUPPORT BEHIND
THE MORE FREEMARKET BILL SPONSORED BY TENNESSEE DEMOCRATIC REP JIM COOPER
THE CEOS DON'T LIKE EVERYTHING ABOUT COOPER EITHER BUT THEY FAVOR IT AS A
STARTING POINT THE COOPER BILL AVOIDS UNNECESSARY GOVERNMENTAL
REGULATIONS AND NEW OFFBUDGET ENTITLEMENT PROGRAMS SAYS A DRAFT OF THE
ROUNDTABLE POSITION LEAKED TO ME

THAT'S WHEN THE WHITE HOUSE HIT THE PHONES BOB RUBIN ROGER ALTMAN AND EVEN
THE ROSE LAW FIRM'S MOST FAMOUS FORMER S&L LAWYER LOBBIED THE CEOS NOT TO
BACK COOPER IN CASE CHARM FAILED ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL
WAS ALSO ASKED TO WEIGH IN HE TOLD THEM THAT IF THEY ENDORSED A SPECIFIC
PLAN IT WOULD MAKE IT HARD FOR THEM TO FIX THE CLINTON PLAN SOME TIME
LATER SAYS MR DINGELL'S SPOKESMAN SURE AND THE GRAND INQUISITOR WAS
ONLY INTERESTED IN SAVING SOULS

A FEW CEOS NAIVELY FELL FOR THIS LINE IN HIS LETTER TO OTHER ROUNDTABLE
MEMBERS ARCO'S MR COOK WROTE THAT THE WHITE HOUSE TELLS ME THEY ARE
MAKING SOME PROGRESS IN DEVELOPING A FINAL PLAN BUT NEED ADDITIONAL TIME
HELLO FINAL PLAN THE WHITE HOUSE LISTENED TO BUSINESS FOR A YEAR WHILE
WRITING THE HILLARY PLAN IGNORING THE ADVICE

ITS STRATEGY NOW IS TO PREVENT ANY CREDIBLE OPPOSITION FROM FORMING BRAZEN
THE CLINTON PLAN THROUGH THE HOUSE ON A PARTISAN VOTE FORCE MODERATE
DEMOCRATS TO COMPROMISE ON ITS TERMS THEN BREAK A REPUBLICAN SENATE
FILIBUSTER MOST OF HILLARY'S PLAN WOULD THEN BE LAW THE LAST THING THE
WHITE HOUSE WANTS IS FOR A MODERATE ALTERNATIVE SUCH AS COOPER TO EMERGE
SINCE THAT COULD LET A COALITION OF DEMOCRATS AND REPUBLICANS STOP THE
CLINTON PLAN COLD THAT'S WHY MR DINGELL WANTS TO RAILROAD A BILL THROUGH
HIS COMMITTEE BY EARLY APRIL BEFORE AN ALTERNATIVE CAN GEL

IT'S ALSO WHY HE AND THE WHITE HOUSE WANT TO DENY MR COOPER THE
ROUNDTABLE'S SUPPORT SO FAR THEIR LOBBYING HAS ONLY HALF WORKED DESPITE
THE ARMTWISTING THE ROUNDTABLE POLICY COMMITTEE VOTED 4514 IN A
CONFERENCE CALL LAST WEEK FOR COOPER OVER CLINTON BUT BOWING TO ARCO'S MR
COOK AND OTHERS THE CEOS PUT OFF A FINAL DECISION UNTIL THEY MEET FACE TO
FACE ON FEB 2 THIS GIVES THE WHITE HOUSE TIME TO SCHMOOZE MORE CEOS TO
STAY NEUTRAL OR TO IMPRESS THEM WITH STATE OF THE UNION SALESMANSHIP

PERHAPS MR COOK AND OTHER CLINTON CEOS ARE JUST POLITICALLY NAIVE MERE
BABES IN THE BELTWAY BUT IT'S ALSO FAIR TO POINT OUT THAT ARCO WOULDN'T
SUFFER THE WAY SMALL COMPANIES WOULD UNDER THE CLINTON PLAN WITH 26000
EMPLOYEES IT IS BIG ENOUGH TO OPT OUT OF BUREAUCRATIC HEALTH ALLIANCES IT
COULD ALSO PASS ON ITS EARLY RETIREE HEALTH COSTS TO UNCLE SAM AND IT'S
ALWAYS NICE TO HAVE A FRIEND IN THE WHITE HOUSE TO HELP WITH THOSE NASTY
CLEAN AIR RULES

IF THESE CEOS ARE MOTIVATED BY MORE THAN SELFINTEREST THEY MIGHT RECALL
THE FATE OF POOR ROY VAGELOS THE MERCK CEO WAS SCHMOOZED HIMSELF IN 1992
HE EVEN LENT THE MERCK CAMPUS FOR A CLINTON SPEECH YET WITHIN WEEKS MERCK
WAS BEING DENOUNCED AS JUST ANOTHER DRUG PROFITEER POLITICIANS ON A MISSION
DON'T LISTEN TO REASON THEY ONLY HEED THE RAW POWER OF A UNITED OPPOSITION
9401210101 940121 QVC'S DILLER SEEKS STOCK TRADERS' IDEAS ON HOW TO
SWEETEN PARAMOUNT BID  BY RANDALL SMITH STAFF REPORTER OF THE WALL
STREET JOURNAL

QVC NETWORK INC CHAIRMAN BARRY DILLER IS ASKING WALL STREET STOCK TRADERS
HOW HE CAN IMPROVE HIS BID FOR PARAMOUNT COMMUNICATIONS INC AMID
INDICATIONS THAT PARAMOUNT'S BOARD MAY ENDORSE A RIVAL BID BY VIACOM INC AT
A MEETING TODAY

PEOPLE CLOSE TO QVC SAY MR DILLER IS CONSIDERING AT LEAST TWO WAYS OF
RESTRUCTURING QVC'S OFFER FOR PARAMOUNTCURRENTLY VALUED AT ROUGHLY 102
BILLION OR 8472 A SHARE WITHOUT NECESSARILY BOOSTING THE TOTAL PRICE

THOSE PEOPLE SAID MR DILLER MAY REDUCE OR ELIMINATE PREFERRED STOCK IN
QVC'S OFFER WHILE BOOSTING THE AMOUNT OF CASH IN THE OFFER BY A COMPARABLE
AMOUNT IN ADDITION THEY SAID HE IS EXPLORING WAYS TO OFFER SOME
PROTECTION AGAINST A DROP IN THE PRICE OF QVC'S STOCK WHICH MAKES UP MORE
THAN ONETHIRD OF THE VALUE OF THE HOMESHOPPING COMPANY'S BID

VIACOM WHICH REVISED ITS OWN BID ON TUESDAY HAS GAINED THE BACKING OF MANY
STOCK TRADERS FOR ITS OFFER DESPITE A LOWER CURRENT MARKET VALUE OF ABOUT
98 BILLION OR 8197 A SHARE BY OFFERING A SECURITY THAT INCREASES IN
VALUE AS VIACOM'S STOCK PRICE DECLINES

AT ITS MEETING TODAY THE PARAMOUNT BOARD IS LIKELY TO BE TOLD THAT TAKEOVER
STOCK TRADERS KNOWN AS ARBITRAGERS AS WELL AS ACTIVE TRADERS KNOWN AS
HEDGE FUNDS GENERALLY PREFER THE VIACOM OFFER LONGERTERM INSTITUTIONAL
INVESTORS ARE GENERALLY NEUTRAL BUT AS THE BIDDING WAR FOR THE PUBLISHING
AND ENTERTAINMENT GIANT HAS ESCALATED MANY OF THEM HAVE SOLD THEIR STOCK
LEAVING THE OUTCOME LARGELY IN THE HANDS OF ARBITRAGERS AND HEDGE FUNDS

AS A RESULT THE PARAMOUNT BOARD MAY ENDORSE THE VIACOM BID IN SOME
EQUIVOCAL WAY OR MAY STICK WITH ITS EXISTING ENDORSEMENT OF QVC'S OFFER FOR
THE TIME BEING BECAUSE THE BIDDING PROCESS STILL HAS ABOUT 10 DAYS TO GO
TRADERS SPECULATE THE BIDDING RULES SET BY PARAMOUNT GIVE BOTH BIDDERS
UNTIL FEB 1 TO SUBMIT THEIR BEST BIDS BUT IT'S UNCLEAR WHETHER EITHER SIDE
WILL ABIDE BY THAT DEADLINE

MR DILLER MET WITH TWO LARGE PARAMOUNT HOLDERS LATE WEDNESDAY TO SOLICIT
THEIR IDEAS AT THE OFFICES OF ALLEN & CO QVC'S INVESTMENT BANKER THE
HOLDERS WERE OMEGA ADVISERS INC A LARGE HEDGE FUND COMPANY RUN BY LEON
COOPERMAN THE FORMER CHIEF INVESTMENT STRATEGIST AT GOLDMAN SACHS & CO
AND BAKER NYE LP AN ARBITRAGE FUND COMPANY THE TWO FUNDS HOLD AN
ESTIMATED SIX MILLION PARAMOUNT SHARES OMEGA HAS PUBLICLY ANNOUNCED ITS
PREFERENCE FOR THE VIACOM OFFER

THE PREFERRED STOCK BEING OFFERED BY QVC TO HOLDERS OF 499 OF PARAMOUNT
STOCK HAS A FACE VALUE OF ROUGHLY 958 MILLION IF THAT WERE SHIFTED TO THE
CASH SIDE OF QVC'S BID QVC COULD BOOST THE BID'S CASH COMPONENT CURRENTLY
92 A SHARE FOR 501 OF PARAMOUNT SHARES BY ALMOST 16 A SHARE THAT COULD
BE JUST ENOUGH TO TOP THE CASH IN THE VIACOM OFFER CURRENTLY 107 A SHARE
FOR 501 OF PARAMOUNT SHARES

MARIO GABELLI WHOSE GABELLI FUNDS OWN ABOUT FOUR MILLION SHARES OF
PARAMOUNT SAID THAT WITH SUCH A SMALL GAP BETWEEN THE BIDS NOW JUST A
DECLINE IN THE STOCK MARKET COULD HURT QVC'S PROSPECTS IN THE CONTEST MR
DILLER HAS TO COME TO GRIPS WITH THE FACT THAT IF THE MARKET IS DOWN THE
DAY BEFORE THE TENDER CLOSES THE ARBITRAGE COMMUNITY IS GOING TO HAVE A
BIAS TOWARD VIACOM MR GABELLI SAID BARRY IS GOING TO HAVE TO BRING UP
EITHER THE FRONT END OR THE BACK END OF THE QVC OFFER

MR DILLER HAS INDICATED TO SOME TRADERS THAT HE IS AVERSE TO OFFERING THE
SAME KIND OF STOCKPRICE PROTECTION AS VIACOM THE CABLETV CONCERN BECAUSE
IT CREATES A POSSIBLE FUTURE LIABILITY THAT COULD WEAKEN HIS COMPANY
FINANCIALLY

ONE WAY QVC COULD PROVIDE PRICE PROTECTION FOR ITS STOCK WOULD BE TO HAVE
BELLSOUTH CORP THE REGIONAL TELEPHONE COMPANY THAT IS ALREADY INVESTING IN
QVC ANNOUNCE PLANS TO BUY ADDITIONAL QVC STOCK AFTER THE PARAMOUNT
ACQUISITION 9401210100 940121 MOORE CORP PLANS 210 MILLION CHARGE 
LOSS FOR 1993 IS SEEN

TORONTO CANADA'S MOORE CORP SAID IT PLANS TO TAKE A PRETAX CHARGE OF
210 MILLION TO COVER THE COSTS OF CLOSING ADDITIONAL MANUFACTURING PLANTS
AND STREAMLINING ITS ORDERMANAGEMENT SYSTEM

MOORE A MAJOR PROVIDER WORLDWIDE OF BUSINESS FORMS SAID IT EXPECTS
SUBSTANTIAL BENEFIT FROM THE PROPOSED CHANGES ASSUMING THE US ECONOMY
CONTINUES TO RECOVER THE TORONTOBASED COMPANY SAID THE BENEFITS WILL COME
IN THE FORM OF LOWER EXPENSES AND IMPROVED GROSS MARGINS

THE PLANNED WRITEDOWN WHICH EQUALS 155 MILLION AFTER TAX OR 155 A
SHARE WILL RESULT IN A LOSS FOR 1993 MOORE SAID HOWEVER A STRONG
BALANCE SHEET AND ADEQUATE CASH RESOURCES ARE SUFFICIENT TO CONTINUE TO
FUND 1994 CAPITAL SPENDING AND TO MAINTAIN THE DIVIDEND IT SAID

MOORE ITS PLAN WILL RESULT IN A REDUCTION OF ABOUT 3000 JOBS OR 13 OF ITS
WORLDWIDE WORK FORCE THE PLANNED CHARGES RELATE TO BUSINESSES IN ALL
GEOGRAPHIC REGIONS IN WHICH MOORE OPERATES THE COMPANY SAID

REVENUE HAS DECLINED IN RECENT YEARS AS MOORE'S CORE BUSINESSFORMS
OPERATIONS FACED PRESSURE FROM THE GROWING USE OF ELECTRONIC COMMUNICATIONS
TO REPLACE DECLINING REVENUE FROM ITS BUSINESSFORMS DIVISION MOORE HAS
TURNED TO OTHER FASTERGROWING ACTIVITIES FOR INSTANCE IT NOW PROVIDES
DIRECT MARKETING SERVICES DATA MANAGEMENT AND DOCUMENT STORAGE AND
RETRIEVAL

MOORE HAS PREVIOUSLY TAKEN WRITEDOWNS IN RELATION TO ITS UNDERPERFORMING
EUROPEAN BUSINESS THE COMPANY SAID ITS RESULTS IN EUROPE ALTHOUGH
IMPROVING ARE STILL UNACCEPTABLE 9401210099 940121 NOVA ISSUES EQUITY
 TO FINANCE EXPANSION NEW LINE OF BUSINESS

CALGARY ALBERTA NOVA CORP OF ALBERTA ANNOUNCED A 5014 MILLION CANADIAN
DOLLAR US3828 MILLION EQUITY ISSUE TO HELP FINANCE PIPELINE EXPANSION
AND TO ESTABLISH A NEW LINE OF BUSINESS

THE CALGARY PIPELINE AND CHEMICALS COMPANY SAID IT EXPECTS TO SPEND C600
MILLION THIS YEAR AND C2 BILLION US153 BILLION BY THE END OF 1996
EXPANDING ITS ALBERTA NATURALGAS PIPELINE SYSTEM NOVA SAID THE EQUITY
INFUSION ALSO WILL ALLOW IT TO TAKE ADVANTAGE OF OPPORTUNITIES IN THE
EMERGING NATURALGAS MARKETING BUSINESS

THE COMPANY SPENT C15 BILLION IN THE PAST THREE YEARS EXPANDING THE
PIPELINE NETWORK AND ANNOUNCED RECORD NATURALGAS DELIVERIES FOR THE SEVENTH
CONSECUTIVE YEAR ITS PIPELINE DIVISION SAID IT DELIVERED 38 TRILLION CUBIC
FEET OF GAS TO ALBERTA GAS USERS AND CONNECTING PIPELINES IN 1993 UP 109
FROM THE PREVIOUS YEAR

NOVA HAS AGREED TO ACQUIRE 35 OF CLOSELY HELD NATURAL GAS CLEARINGHOUSE
HOUSTON AND TO ESTABLISH A GASMARKETING JOINT VENTURE WITH CLEARINGHOUSE
IN CANADA

NOVA SAID IT AGREED TO SELL 525 MILLION COMMON SHARES AT C955 A SHARE TO
CANADIAN PUBLIC INVESTORS THROUGH A SYNDICATE OF CANADIAN UNDERWRITERS LED
BY RBC DOMINION SECURITIES INC SCOTIA MCLEOD INC AND BURNS FRY LTD NOVA
HAD ROUGHLY 407 MILLION COMMON SHARES OUTSTANDING BEFORE THE NEW SHARE
ISSUE

A SPOKESMAN SAID HE EXPECTS THE SHARE ISSUE TO HAVE A NEUTRAL EFFECT ON THE
COMPANY'S 1994 NET INCOME AND TO LOWER ITS 1994 PERSHARE EARNINGS DUE TO
DILUTION

DONALD PATTISON AN ANALYST WITH NEW YORK BROKERAGE HOUSE CJ LAWRENCE
SAID HE STILL EXPECTS NOVA TO REPORT 1993 EARNINGS ABOVE THE PREVIOUS YEAR'S
33 CENTS A SHARE BUT WELL BELOW HIS EARLIER FORECAST OF 49 CENTS A SHARE
9401210098 940121 LETTERS TO THE EDITOR BE WARY OF SYRIA

THREE CHEERS FOR PAUL GIGOT AND HIS DEC 27 EDITORIALPAGE ARTICLE SYRIA
DIARY ASSAD HAS A DEAL WE CAN REFUSE HE ARTICULATES THE MANY GRAVE
DIFFICULTIES FACED BY ISRAEL IN NEGOTIATING PEACE WITH SYRIA

ASSAD'S BRUTAL DICTATORSHIP IS A GIANT DESTABILIZING INFLUENCE IN THE MIDDLE
EAST ISRAEL AS AMERICA'S BEST FRIEND IN THE UN AND AS THE ONLY
LEGITIMATE DEMOCRACY IN THE REGION DESERVES OUR STAUNCH SUPPORT AND
ENCOURAGEMENT THROUGHOUT THE PEACE PROCESS OUR ADMINISTRATION'S OVERTURES
TO THE SYRIANS PROVOKE GRAVE ANXIETIES ON THE PART OF AMERICANS WHO ARE
WELLINFORMED ABOUT THE REALITIES OF THE MIDDLE EAST 9401210097 940121
MARKETING & MEDIA NOTED

MAGAZINES CAROLINE MILLER EDITORINCHIEF OF LEAR'S MAGAZINE WAS NAMED
EDITOR OF SEVENTEEN MAGAZINE BY KIII COMMUNICATIONS CORP MS MILLER 46
SUCCEEDS MIDGE RICHARDSON 63 WHO LEFT THE POST IN OCTOBER TO BECOME
EDITORATLARGE AT KOHLBERG KRAVIS ROBERTS & CO'S KIII MEANWHILE YM
EDITORINCHIEF BONNIE HUROWITZFULLER 37 SAID SHE IS LEAVING BERTELSMANN
AG'S YM SHE WILL BECOME EDITORINCHIEF OF MARIE CLAIRE AN AMERICAN
VERSION OF A FRENCH FASHION MAGAZINE TO BE TESTED IN THE FALL BY HEARST
CORP 9401210096 940121 REVIEW & OUTLOOK EDITORIAL TOO MUCH BAGGAGE

SO THE GANG THAT GAVE US DEFENSE SECRETARY INMAN NOW OFFERS US AS SPECIAL
COUNSEL TO INVESTIGATE POSSIBLE IMPROPRIETY BY THE PRESIDENT CLARK
CLIFFORD'S LAWYER

DO NOT MISUNDERSTAND THOUGH WE SUPPOSE THAT ASKS TOO MUCH THIS IS NOT
INTENDED AS A PERSONAL ATTACK ON ROBERT FISKE JR LAWYERS ARE ENTITLED TO
HAVE CLIENTS AND IN THE LEGAL MANEUVERING MR CLIFFORD SWITCHED TO ANOTHER
LAWYER UNQUESTIONABLY MR FISKE CARRIES A REPUTATION AS AN UPSTANDING
MEMBER OF THE NEW YORK BAR ON THE BASIS OF WHAT WE KNOW ABOUT HIM FOR MOST
POSTS HE WOULD BE AN OUTSTANDING CHOICE

INDEED WE OURSELVES STRONGLY SUPPORTED HIS NOMINATION AS DEPUTY ATTORNEY
GENERAL WHEN HE WAS ATTACKED BY 14 US SENATORS THE SENATE'S CONSERVATIVE
FACTION SENT A LETTER TO PRESIDENT BUSH OPPOSING MR FISKE ON THE GROUNDS
THAT HE HAD BEEN CHAIRMAN OF THE AMERICAN BAR ASSOCIATION JUDICIAL SELECTION
COMMITTEE WHILE WE AGREED WITH THEIR CRITICISM OF THE INCREASINGLY
POLITICIZED COMMITTEE WE OBSERVED THAT WITHIN THE COMMITTEE MR FISKE HAD
BEEN A FORCE FOR THE GOOD AND ON THE BASIS OF HIS OWN TENURE AS US
ATTORNEY IN MANHATTAN THAT HE WOULD BE A SALUTARY RESTRAINING HAND ON
FEDERAL PROSECUTORS ON ISSUES SUCH AS THE APPLICATION OF RICO THE
RACKETEERING STATUTE BEING APPLIED TO FINANCIAL INSTITUTIONS WHY JUSTICE
NEEDS FISKE JUNE 22 1989 WE FAILED TO PERSUADE THE SENATORS AND MR
FISKE EVENTUALLY WITHDREW

MR FISKE'S NEW APPOINTMENT HOWEVER IS FAR FROM AN ORDINARY POST AS WE
ELABORATED EARLIER IN THE WEEK FOUNTAIN OF TRUST JANUARY 19 THE WHOLE
IDEA IS TO FIND SOMEONE WHOSE WORD MOST AMERICANS WOULD BE INCLINED TO TAKE
ON TRUST WHICH SURELY MEANS SOMEONE NOT IN THE LEAST CONNECTED TO THE
SCANDALS CIRCLING THE GLOBE THERE ARE EVEN CERTAIN SPECULATIVE BUT STILL
POSSIBLE CONNECTIONS BETWEEN WHITEWATER AND THE BCCI SCANDAL LITTLE ROCK'S
STEPHENS FINANCIAL EMPIRE HELPED BANKROLL BILL CLINTON'S PRESIDENTIAL
CAMPAIGN AND ALSO HELD A LIEN ON JAMES MCDOUGAL'S INTEREST IN MADISON
GUARANTY SAVINGS & LOAN ANOTHER PART OF THE SAME EMPIRE HANDLED THE
BROKERAGE WHEN BCCI SURROGATES BOUGHT WASHINGTON'S FIRST AMERICAN BANK 
AND INSTALLED MR CLIFFORD AS ITS HEAD

NOW OF COURSE MR CLIFFORD ESCAPED TRIAL IN NEW YORK ON HEALTH GROUNDS
PERHAPS A TESTIMONY TO MR FISKE'S EFFORTS ON HIS BEHALF AND HIS ACOLYTE
ROBERT ALTMAN WAS ACQUITTED OF MISLEADING REGULATORS LEAVING THE INTRIGUING
QUESTION OF HOW IT WAS BCCI CAME TO OWN THE BIGGEST BANK IN WASHINGTON BUT
INVESTIGATORS NOW HAVE ACCESS TO A PASSEL OF BCCI DOCUMENTS NOT AVAILABLE
DURING THIS TRIAL IN ANY EVENT KNOWINGLY OR NOT MR CLIFFORD AND MR
ALTMAN INDISPUTABLY WORKED FOR BCCI

GIVEN THE EXTREME SENSITIVITY OF THE SPECIAL COUNSEL POST SURELY IT WOULD
HAVE BEEN POSSIBLE TO FIND SOMEONE OTHER THAN A PROMINENT MEMBER OF MR
CLIFFORD'S DEFENSE TEAM YES MR FISKE IS WIDELY SEEN AS UPSTANDING HIS
LIST OF CHARACTER WITNESSES WOULD BE ALMOST AS LONG AS HIS CLIENT'S BUT
SUCH A LIST IS COOL COMFORT TO THE GROWING NUMBER OF AMERICANS WHO THINK
THAT SOMETHING IS WRONG IN HIGH PLACES

WHY FOR THAT MATTER SELECT SOMEONE WHO'D ATTRACTED THE WRITTEN OPPOSITION
OF 14 SENATORS IF THE OBJECT IS TO BUILD TRUST IN THE INVESTIGATION WHY
THEN PICK SOMEONE WITH PREPACKAGED ENEMIES

IN ALL A VERY CURIOUS SELECTION WHY DID JANET RENO MAKE THIS CHOICE IF
SHE DID WHY DID DAVIS POLK & WARDWELL CONSENT TO HAVE AN ACTIVE PARTNER IN
THIS ROLE AND WHAT DOES ITS CLIENT LIST LOOK LIKE LAWRENCE WALSH HAD
RETIRED FROM DAVIS POLK BEFORE MOUNTING HIS CRUSADE AND SINCE MR FISKE
MUST KNOW WHAT BAGGAGE HE RIGHTLY OR WRONGLY CARRIES WHY WOULD SOMEONE OF
HIS INTEGRITY ACCEPT THE APPOINTMENT

THE ULTIMATE POINT OF THESE QUESTIONS WE SUPPOSE IS THAT THE VERY NOTION
OF SPECIAL PROSECUTORS ASKS TOO MUCH MR FISKE PROMISES THAT AT THE END OF
HIS INVESTIGATION HE WILL ISSUE A PUBLIC REPORT WHY IS THAT WHAT HE DID AS
A US ATTORNEY NO EITHER HE INDICTED AND PUT THE DECISION BEFORE A JUDGE
AND JURY OR HE SHUT UP THAT IS THE WAY THE CRIMINAL PROCESS IS SUPPOSED TO
WORK WE CLEARLY DO NEED A PUBLIC REPORT BUT THAT IS THE PURVIEW OF AN
INVESTIGATION BY THE LEGISLATIVE BRANCH WHICH OPERATES BY GIVE AND TAKE IN
THE LIGHT OF DAY WE WISH MR FISKE THE BEST OF LUCK WITH HIS INVESTIGATION
BUT HIS CURRICULUM VITAE MAKES A CONGRESSIONAL PROBE OF WHITEWATER ALL THE
MORE NECESSARY

HAS THIS REPUBLIC REALLY REACHED THE POINT THAT A DEMOCRATIC CONGRESS CANNOT
BE EXPECTED TO OPENLY INVESTIGATE SUSPICIONS INVOLVING A DEMOCRATIC
PRESIDENT HAVE WE REACHED THE POINT WHERE IT IS UNREASONABLE EVEN TO ASK
FOR ONE GUESS NOT NECESSARILY BUT IF WE HAVE WHAT WE NEED IS A NEW
CONGRESS 9401210095 940121 BUSINESS BRIEF GENERAL MOTORS CORP 
SATURN WILL ADD 2800 TO WORKERS' 1993 BONUSES

GENERAL MOTORS CORP'S SATURN UNIT WILL ADD 2800 AT END OF THIS MONTH TO
EACH WORKER'S 1993 BONUS BRINGING THE TOTAL BONUS FOR LAST YEAR TO 5100

SATURN MADE A PROFIT LAST YEAR BEFORE INTEREST TAXES AND HEALTHCARE
COSTS FOR THE FIRST TIME SINCE IT BEGAN PRODUCING CARS IN 1990 THAT HELPED
TRIGGER THE LARGE BONUSES THE 8500 SATURN WORKERS WERE ALSO REWARDED
BECAUSE SATURN MET QUALITY AND PRODUCTION GOALS A SATURN SPOKESMAN SAID