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"South",
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"Tae",
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"Arnold",
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",",
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"though",
"within",
"the",
"family",
"we",
"know",
"there",
"'s",
"a",
"lot",
"of",
"hard",
"work",
"ahead",
",",
"''",
"said",
"Richard",
"Miller",
",",
"the",
"Lowell",
",",
"Mass.",
",",
"computer",
"concern",
"'s",
"new",
"president",
",",
"in",
"a",
"video",
"message",
"to",
"salespeople",
"a",
"month",
"after",
"he",
"took",
"over",
".",
"Wang",
"got",
"into",
"financial",
"trouble",
"because",
"of",
"bloated",
"overhead",
"and",
"overly",
"optimistic",
"sales",
"forecasts",
".",
"Its",
"mainline",
"minicomputers",
"and",
"word",
"processors",
"have",
"lost",
"ground",
"to",
"cheaper",
"personal",
"computers",
".",
"Last",
"year",
"it",
"funded",
"its",
"high",
"employment",
"by",
"heavy",
"borrowing",
",",
"and",
"it",
"suffered",
"huge",
"losses",
"when",
"sales",
"turned",
"down",
"instead",
"of",
"rising",
".",
"After",
"the",
"company",
"reported",
"red",
"ink",
"for",
"the",
"fiscal",
"third",
"quarter",
",",
"Wang",
"'s",
"marketing",
"department",
"provided",
"the",
"sales",
"force",
"answers",
"to",
"questions",
"such",
"as",
"``",
"How",
"could",
"you",
"not",
"have",
"known",
"you",
"were",
"going",
"to",
"lose",
"$",
"55",
"million",
"?",
"''",
"and",
"``",
"Is",
"Wang",
"still",
"a",
"viable",
"company",
"?",
"''",
"Salespeople",
"try",
"to",
"push",
"their",
"products",
"and",
"avoid",
"discussions",
"of",
"finances",
".",
"Responding",
"to",
"such",
"questions",
"is",
"``",
"defensive",
",",
"''",
"says",
"Kenneth",
"Olissa",
",",
"Wang",
"'s",
"vice",
"president",
",",
"marketing",
".",
"``",
"That",
"'s",
"antithetical",
"to",
"the",
"art",
"of",
"selling",
".",
"''",
"Moreover",
",",
"he",
"notes",
"that",
"analyzing",
"financial",
"results",
"``",
"poses",
"a",
"problem",
"for",
"a",
"salesman",
"who",
"is",
"n't",
"particularly",
"familiar",
"with",
"a",
"balance",
"sheet",
".",
"''",
"At",
"one",
"sales",
"strategy",
"meeting",
",",
"an",
"executive",
"suggested",
"ordering",
"salespeople",
"to",
"become",
"experts",
"on",
"the",
"annual",
"report",
".",
"Mr.",
"Miller",
"vetoed",
"that",
":",
"``",
"Even",
"I",
"ca",
"n't",
"understand",
"all",
"the",
"footnotes",
",",
"''",
"he",
"says",
".",
"Instead",
",",
"he",
"says",
",",
"if",
"the",
"salespeople",
"can",
"get",
"the",
"customers",
"to",
"consider",
"Wang",
"'s",
"products",
"on",
"their",
"merits",
",",
"he",
"or",
"a",
"top",
"financial",
"officer",
"will",
"try",
"to",
"assuage",
"the",
"fears",
"about",
"finances",
".",
"Mike",
"Metschan",
",",
"a",
"salesman",
"in",
"Wang",
"'s",
"Austin",
",",
"Texas",
",",
"office",
",",
"has",
"a",
"breezier",
"method",
":",
"``",
"We",
"tell",
"them",
"$",
"3",
"billion",
"companies",
"do",
"n't",
"go",
"out",
"of",
"business",
".",
"We",
"tell",
"them",
"all",
"the",
"major",
"companies",
"are",
"having",
"financial",
"difficulties",
".",
"''",
"Numerous",
"computer",
"companies",
"are",
"having",
"sales",
"slumps",
"and",
"earnings",
"declines",
",",
"but",
"very",
"few",
"have",
"had",
"losses",
"comparable",
"to",
"Wang",
"'s",
"or",
"are",
"carrying",
"such",
"a",
"large",
"debt",
"load",
".",
"Mr.",
"Miller",
"says",
"that",
"after",
"a",
"sharp",
"sales",
"slump",
"in",
"July",
"and",
"August",
",",
"sales",
"stabilized",
"in",
"September",
".",
"Although",
"Wang",
"will",
"report",
"a",
"loss",
"for",
"the",
"first",
"quarter",
"ended",
"Sept.",
"30",
"and",
"the",
"full",
"fiscal",
"year",
",",
"Mr.",
"Miller",
"says",
"he",
"expects",
"the",
"company",
"will",
"return",
"to",
"profitability",
"by",
"the",
"fourth",
"quarter",
".",
"Experts",
"on",
"sales",
"technique",
"say",
"anyone",
"representing",
"a",
"troubled",
"company",
"must",
"walk",
"a",
"fine",
"line",
".",
"``",
"If",
"a",
"salesman",
"jeopardizes",
"his",
"credibility",
"in",
"this",
"time",
"of",
"trouble",
",",
"it",
"will",
"be",
"a",
"problem",
"for",
"the",
"long",
"run",
",",
"''",
"says",
"George",
"Palmatier",
",",
"a",
"Minden",
",",
"Nev.",
",",
"sales",
"consultant",
"and",
"author",
"of",
"``",
"The",
"Marketing",
"Edge",
".",
"''",
"Still",
",",
"says",
"John",
"Sullivan",
",",
"a",
"management",
"recruiter",
"with",
"Daniel",
"Roberts",
"Inc.",
"of",
"Boston",
",",
"who",
"has",
"held",
"senior",
"sales",
"positions",
"at",
"Polaroid",
"and",
"Atari",
":",
"``",
"The",
"customer",
"will",
"react",
"to",
"strength",
".",
"Ignore",
"the",
"present",
"condition",
".",
"Show",
"it",
"'s",
"business",
"as",
"usual",
".",
"''",
"That",
"is",
"n't",
"easy",
".",
"Wang",
"'s",
"customers",
"are",
"data",
"processing",
"managers",
"who",
"want",
"to",
"be",
"sure",
"that",
"their",
"suppliers",
"are",
"stable",
",",
"wellrun",
"companies",
"that",
"will",
"be",
"around",
"to",
"fix",
"bugs",
"and",
"upgrade",
"computers",
"for",
"years",
"to",
"come",
".",
"For",
"buyers",
",",
"``",
"these",
"are",
"career-risking",
"decisions",
",",
"''",
"says",
"Jean",
"Conlin",
",",
"who",
"supervises",
"a",
"network",
"of",
"Wang",
"computers",
"in",
"the",
"admissions",
"department",
"at",
"Boston",
"University",
".",
"The",
"university",
"is",
"considering",
"installing",
"a",
"$",
"250,000",
"system",
"to",
"store",
"applications",
"electronically",
".",
"``",
"Before",
"the",
"really",
"bad",
"news",
",",
"we",
"were",
"looking",
"at",
"Wang",
"fairly",
"seriously",
",",
"''",
"she",
"says",
".",
"But",
"``",
"their",
"present",
"financial",
"condition",
"means",
"I",
"'d",
"have",
"a",
"hard",
"time",
"convincing",
"the",
"vice",
"president",
"in",
"charge",
"of",
"purchasing",
".",
"''",
"Ms.",
"Conlin",
"adds",
":",
"``",
"At",
"some",
"point",
"we",
"'d",
"have",
"to",
"ask",
",",
"`",
"How",
"do",
"we",
"know",
"that",
"in",
"three",
"years",
"you",
"wo",
"n't",
"be",
"in",
"Chapter",
"11",
"?",
"'",
"''",
"During",
"the",
"past",
"year",
",",
"Wang",
"has",
"developed",
"new",
"products",
"and",
"a",
"new",
"strategy",
"and",
"hired",
"a",
"new",
"president",
".",
"Wang",
"'s",
"overall",
"product",
"line",
"is",
"``",
"still",
"not",
"as",
"good",
"as",
"other",
"vendors",
",",
"but",
"they",
"'ve",
"come",
"a",
"long",
"way",
",",
"''",
"says",
"Steven",
"Wendler",
",",
"a",
"consultant",
"with",
"market",
"researcher",
"Gartner",
"Group",
",",
"Stamford",
",",
"Conn",
".",
"``",
"They",
"were",
"on",
"the",
"road",
"to",
"recovery",
"in",
"terms",
"of",
"customer",
"attitudes",
"until",
"this",
"bad",
"quarter",
"happened",
".",
"''",
"The",
"first",
"priority",
"for",
"Wang",
"'s",
"sales",
"force",
"is",
"to",
"make",
"sure",
"it",
"holds",
"on",
"to",
"existing",
"customers",
".",
"Wang",
"'s",
"installed",
"base",
"is",
"one",
"of",
"its",
"greatest",
"assets",
",",
"and",
"many",
"of",
"those",
"customers",
"remain",
"extremely",
"loyal",
".",
"But",
"even",
"before",
"Wang",
"'s",
"latest",
"financial",
"troubles",
"surfaced",
",",
"some",
"customers",
"``",
"were",
"trying",
"to",
"wall",
"off",
"their",
"Wang",
"installations",
"''",
"so",
"other",
"departments",
"would",
"n't",
"add",
"Wang",
",",
"says",
"Chris",
"Christiansen",
",",
"a",
"former",
"Wang",
"marketer",
"who",
"is",
"now",
"a",
"market",
"analyst",
"with",
"Meta",
"Group",
",",
"a",
"market",
"research",
"firm",
"in",
"Stamford",
",",
"Conn",
".",
"One",
"Wang",
"salesman",
"who",
"left",
"the",
"company",
"in",
"July",
"recalls",
"that",
"when",
"he",
"tried",
"to",
"sell",
"products",
"to",
"Eastman",
"Kodak",
",",
"he",
"worked",
"``",
"to",
"muster",
"support",
"from",
"internal",
"allies",
",",
"''",
"but",
"``",
"those",
"allies",
"became",
"skeptical",
"as",
"they",
"saw",
"the",
"downtrend",
".",
"The",
"more",
"recent",
"losses",
"were",
"really",
"devastating",
".",
"''",
"New",
"customers",
",",
"the",
"source",
"of",
"higher",
"commissions",
"for",
"salespeople",
"and",
"the",
"key",
"to",
"Wang",
"'s",
"long-term",
"viability",
",",
"are",
"even",
"tougher",
".",
"Rick",
"Lynch",
",",
"a",
"former",
"top",
"salesman",
"in",
"Wang",
"'s",
"Boston",
"office",
",",
"referring",
"to",
"Wang",
"'s",
"mainstay",
"computer",
"line",
",",
"says",
":",
"``",
"You",
"ca",
"n't",
"sell",
"a",
"VS",
"to",
"a",
"new",
"customer",
".",
"''",
"Mr.",
"Lynch",
"left",
"Wang",
"this",
"summer",
"for",
"Oracle",
"Systems",
"Inc.",
",",
"a",
"software",
"vendor",
".",
"The",
"financial",
"problems",
"are",
"particularly",
"frustrating",
"for",
"salespeople",
"pushing",
"Wang",
"'s",
"image",
"systems",
",",
"which",
"convert",
"paper",
"forms",
"to",
"electronic",
"documents",
".",
"Consultants",
"say",
"that",
"Wang",
"'s",
"technology",
"is",
"among",
"the",
"best",
"available",
"in",
"the",
"image",
"market",
".",
"But",
"salespeople",
"often",
"found",
"that",
"news",
"of",
"Wang",
"'s",
"problems",
"superseded",
"their",
"sales",
"efforts",
".",
"William",
"Tait",
",",
"a",
"former",
"sales",
"manager",
"in",
"Indianapolis",
",",
"says",
"that",
"his",
"office",
"had",
"all",
"but",
"sold",
"a",
"$",
"1.5",
"million",
"image",
"system",
"to",
"pharmaceutical",
"maker",
"Eli",
"Lilly",
"&",
"Co",
".",
"``",
"When",
"they",
"were",
"making",
"the",
"decision",
",",
"all",
"hell",
"broke",
"loose",
"with",
"the",
"finances",
".",
"''",
"He",
"says",
"the",
"Lilly",
"executives",
"told",
"him",
"they",
"could",
"n't",
"take",
"the",
"risk",
"with",
"Wang",
".",
"Mr.",
"Tait",
"say",
"he",
"does",
"n't",
"blame",
"Lilly",
".",
"Buyers",
"have",
"to",
"rely",
"on",
"a",
"supplier",
"``",
"continually",
"upgrading",
"and",
"replacing",
"the",
"product",
",",
"''",
"he",
"says",
".",
"``",
"When",
"a",
"company",
"realizes",
"that",
",",
"it",
"'s",
"hard",
"to",
"go",
"with",
"Wang",
".",
"''",
"For",
"Mr.",
"Tait",
",",
"who",
"says",
"he",
"used",
"to",
"earn",
"as",
"much",
"as",
"$",
"150,000",
"a",
"year",
"at",
"Wang",
",",
"it",
"was",
"one",
"more",
"reason",
"to",
"quit",
".",
"He",
"is",
"now",
"president",
"of",
"Eastate",
"Homes",
"Inc.",
",",
"an",
"Indianapolis",
"contractor",
".",
"It",
"can",
"be",
"hard",
"for",
"a",
"salesperson",
"to",
"fight",
"off",
"feelings",
"of",
"discouragement",
".",
"Brian",
"Petre",
",",
"a",
"former",
"Wang",
"salesman",
"in",
"upstate",
"New",
"York",
",",
"says",
":",
"``",
"You",
"have",
"pride",
"in",
"your",
"job",
".",
"You",
"think",
"you",
"can",
"go",
"out",
"and",
"turn",
"things",
"around",
".",
"It",
"'s",
"a",
"tough",
"thing",
"when",
"you",
"ca",
"n't",
".",
"The",
"reason",
"does",
"n't",
"relate",
"to",
"your",
"selling",
"skills",
".",
"''",
"Discouragement",
"feeds",
"on",
"itself",
".",
"``",
"The",
"problem",
"is",
",",
"if",
"people",
"get",
"down",
"in",
"the",
"dumps",
",",
"they",
"stop",
"selling",
",",
"''",
"says",
"Mike",
"Durcan",
",",
"a",
"laid-off",
"sales",
"manager",
"in",
"Wang",
"'s",
"Austin",
"office",
".",
"One",
"key",
"for",
"salespeople",
"is",
"to",
"boost",
"their",
"own",
"morale",
".",
"Paul",
"Hellman",
",",
"a",
"Framingham",
",",
"Mass.",
",",
"sales",
"and",
"management",
"consultant",
"and",
"author",
"of",
"``",
"Ready",
",",
"Aim",
",",
"You",
"'re",
"Hired",
",",
"''",
"says",
":",
"``",
"The",
"bad",
"news",
"is",
",",
"you",
"'ll",
"be",
"rejected",
"more",
".",
"The",
"good",
"news",
"is",
",",
"it",
"'s",
"not",
"your",
"fault",
".",
"''",
"So",
",",
"he",
"advises",
",",
"make",
"goals",
"achievable",
".",
"For",
"instance",
",",
"he",
"suggests",
"that",
"salespeople",
"making",
"telephone",
"calls",
"should",
"say",
"to",
"themselves",
":",
"``",
"All",
"I",
"want",
"to",
"do",
"today",
"is",
"get",
"50",
"rejections",
".",
"''",
"But",
"Mr.",
"Miller",
",",
"Wang",
"'s",
"new",
"president",
",",
"recently",
"warned",
"his",
"salespeople",
"about",
"negativism",
".",
"``",
"Our",
"customers",
"watch",
"us",
"for",
"the",
"hidden",
"message",
",",
"''",
"he",
"said",
".",
"``",
"Look",
"a",
"customer",
"right",
"in",
"the",
"eye",
"and",
"say",
",",
"`",
"I",
"'m",
"glad",
"to",
"be",
"at",
"Wang",
"."
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] |
[
"California",
"legislators",
",",
"searching",
"for",
"ways",
"to",
"pay",
"for",
"the",
"$",
"4",
"billion",
"to",
"$",
"6",
"billion",
"in",
"damages",
"from",
"last",
"week",
"'s",
"earthquake",
",",
"are",
"laying",
"the",
"groundwork",
"for",
"a",
"temporary",
"increase",
"in",
"the",
"state",
"'s",
"sales",
"tax",
".",
"The",
"talk",
"of",
"a",
"sales",
"tax",
"rise",
"follows",
"a",
"rebuff",
"from",
"Congress",
"on",
"the",
"question",
"of",
"how",
"much",
"the",
"federal",
"government",
"is",
"willing",
"to",
"spend",
"to",
"aid",
"in",
"California",
"'s",
"earthquake",
"relief",
"efforts",
".",
"The",
"state",
"had",
"sought",
"as",
"much",
"as",
"$",
"4.1",
"billion",
"in",
"relief",
",",
"but",
"yesterday",
"the",
"House",
"approved",
"a",
"more",
"general",
"scaled-back",
"measure",
"calling",
"for",
"$",
"2.85",
"billion",
"in",
"aid",
",",
"the",
"bulk",
"of",
"which",
"would",
"go",
"to",
"California",
",",
"with",
"an",
"unspecified",
"amount",
"going",
"to",
"regions",
"affected",
"by",
"Hurricane",
"Hugo",
".",
"That",
"leaves",
"the",
"state",
"roughly",
"$",
"2",
"billion",
"to",
"$",
"4",
"billion",
"short",
".",
"A",
"sales",
"tax",
"increase",
"appears",
"to",
"be",
"the",
"fastest",
"and",
"easiest",
"to",
"raise",
"funds",
"in",
"a",
"hurry",
".",
"According",
"to",
"the",
"state",
"department",
"of",
"finance",
",",
"a",
"one-penny",
"increase",
"in",
"the",
"state",
"'s",
"six-cent",
"per",
"dollar",
"sales",
"tax",
"could",
"raise",
"$",
"3",
"billion",
".",
"Willie",
"Brown",
",",
"speaker",
"of",
"California",
"'s",
"Assembly",
",",
"said",
"that",
"Gov.",
"George",
"Deukmejian",
"has",
"agreed",
"to",
"schedule",
"a",
"special",
"session",
"of",
"the",
"legislature",
"within",
"two",
"weeks",
".",
"California",
"'s",
"so-called",
"Gann",
"limit",
"effectively",
"prevents",
"the",
"state",
"from",
"spending",
"new",
"tax",
"money",
"and",
"so",
"drastically",
"limits",
"its",
"options",
"in",
"an",
"emergency",
".",
"Both",
"Mr.",
"Brown",
",",
"the",
"state",
"'s",
"most",
"influential",
"legislator",
",",
"and",
"Gov.",
"Deukmejian",
"favor",
"a",
"temporary",
"sales",
"tax",
"increase",
"--",
"should",
"more",
"money",
"be",
"needed",
"than",
"the",
"state",
"can",
"raise",
"from",
"existing",
"sources",
"and",
"the",
"federal",
"government",
".",
"According",
"to",
"a",
"spokesman",
",",
"the",
"governor",
"is",
"also",
"studying",
"the",
"possibility",
"of",
"raising",
"state",
"gasoline",
"taxes",
".",
"Mr.",
"Brown",
",",
"meanwhile",
",",
"believes",
"``",
"only",
"one",
"tax",
"will",
"be",
"feasible",
",",
"and",
"it",
"will",
"be",
"a",
"one-penny",
"sales",
"tax",
"increase",
",",
"''",
"said",
"Chuck",
"Dalldorf",
",",
"an",
"aide",
".",
"One",
"immediate",
"source",
"of",
"money",
"is",
"an",
"emergency",
"fund",
"set",
"up",
"by",
"Gov.",
"Deukmejian",
".",
"The",
"fund",
"has",
"about",
"$",
"1",
"billion",
"and",
"is",
"set",
"up",
"to",
"handle",
"``",
"precisely",
"the",
"kind",
"of",
"emergency",
"''",
"the",
"state",
"faces",
",",
"said",
"Tom",
"Beermann",
",",
"the",
"Governor",
"'s",
"deputy",
"press",
"secretary",
".",
"But",
"the",
"fund",
"'s",
"size",
"is",
"disputed",
"by",
"Mr.",
"Brown",
"'s",
"office",
",",
"which",
"estimates",
"the",
"fund",
"holds",
"from",
"$",
"630",
"million",
"to",
"$",
"800",
"million",
".",
"Moreover",
",",
"an",
"aide",
"to",
"Mr.",
"Brown",
"said",
"Gov.",
"Deukmejian",
"``",
"has",
"expressed",
"a",
"desire",
"not",
"to",
"spend",
"all",
"the",
"reserve",
"on",
"this",
".",
"''",
"To",
"push",
"through",
"a",
"sales",
"tax",
"increase",
",",
"however",
",",
"the",
"state",
"will",
"have",
"to",
"suspend",
"the",
"Gann",
"limit",
",",
"citing",
"an",
"emergency",
".",
"And",
"then",
"it",
"will",
"be",
"required",
"to",
"lower",
"taxes",
"by",
"a",
"corresponding",
"amount",
"during",
"a",
"three-year",
"period",
"after",
"the",
"temporary",
"tax",
"increase",
"ends",
",",
"said",
"Cindy",
"Katz",
",",
"assistant",
"director",
"of",
"the",
"state",
"department",
"of",
"finance",
".",
"A",
"sales",
"tax",
"increase",
"would",
"require",
"two-thirds",
"approval",
"in",
"both",
"houses",
"of",
"the",
"state",
"'s",
"legislature",
".",
"But",
"observers",
"expect",
"broad",
"support",
".",
"``",
"If",
"there",
"'s",
"an",
"emergency",
"and",
"there",
"are",
"n't",
"sufficient",
"funds",
"from",
"elsewhere",
",",
"I",
"think",
"the",
"attitude",
"will",
"be",
"supportive",
",",
"''",
"said",
"Kirk",
"West",
",",
"president",
"of",
"the",
"California",
"Chamber",
"of",
"Commerce",
".",
"But",
"others",
"think",
"property",
"owners",
"ought",
"to",
"pay",
"a",
"higher",
"portion",
"of",
"the",
"state",
"'s",
"earthquake",
"relief",
"tab",
".",
"Since",
"the",
"late",
"1970s",
",",
"California",
"property",
"owners",
"have",
"benefited",
"from",
"a",
"tax",
"rollback",
"as",
"a",
"result",
"of",
"a",
"state",
"ballot",
"initiative",
"known",
"as",
"Proposition",
"13",
".",
"The",
"state",
"could",
"also",
"increase",
"gasoline",
"taxes",
";",
"every",
"one",
"penny",
"increase",
"in",
"the",
"tax",
"would",
"yield",
"$",
"11",
"million",
"a",
"month",
".",
"But",
"Gov.",
"Deukmejian",
"and",
"others",
"are",
"reluctant",
"to",
"do",
"anything",
"to",
"harm",
"the",
"state",
"'s",
"chances",
"of",
"sharply",
"raising",
"gasoline",
"taxes",
"on",
"a",
"permanent",
"basis",
".",
"To",
"raise",
"more",
"highway",
"funds",
",",
"a",
"measure",
"to",
"double",
"the",
"state",
"'s",
"nine-cent",
"a",
"gallon",
"tax",
"over",
"five",
"years",
"is",
"set",
"to",
"appear",
"on",
"the",
"state",
"'s",
"June",
"election",
"ballot",
".",
"But",
"some",
"fear",
"imposing",
"a",
"temporary",
"gasoline",
"tax",
"increase",
"in",
"the",
"meantime",
"could",
"undercut",
"support",
"among",
"voters",
"for",
"the",
"measure",
".",
"Not",
"everyone",
"is",
"convinced",
"the",
"state",
"must",
"raise",
"new",
"revenue",
"to",
"meet",
"its",
"earthquake",
"needs",
".",
"``",
"It",
"'s",
"possible",
",",
"though",
"not",
"probable",
",",
"''",
"that",
"the",
"state",
"could",
"get",
"by",
"with",
"its",
"existing",
"resources",
"and",
"federal",
"help",
",",
"said",
"Quentin",
"Kopp",
",",
"chairman",
"of",
"the",
"state",
"senate",
"'s",
"transportation",
"committee",
".",
"Separately",
",",
"two",
"men",
"injured",
"in",
"last",
"week",
"'s",
"earthquake-triggered",
"freeway",
"collapse",
"in",
"Oakland",
"began",
"a",
"legal",
"battle",
"against",
"the",
"state",
"over",
"whether",
"officials",
"adequately",
"heeded",
"warnings",
"about",
"the",
"structure",
"'s",
"safety",
".",
"The",
"claims",
",",
"which",
"were",
"filed",
"with",
"the",
"State",
"Board",
"of",
"Control",
"but",
"will",
"probably",
"end",
"up",
"in",
"court",
",",
"are",
"the",
"first",
"arising",
"out",
"of",
"the",
"collapse",
"of",
"the",
"so-called",
"Cypress",
"structure",
"viaduct",
".",
"The",
"men",
"can",
"defeat",
"immunities",
"that",
"states",
"often",
"assert",
"in",
"court",
"by",
"showing",
"that",
"officials",
"knew",
"or",
"should",
"have",
"known",
"that",
"design",
"of",
"the",
"structure",
"was",
"defective",
"and",
"that",
"they",
"failed",
"to",
"make",
"reasonable",
"changes",
".",
"A",
"Board",
"of",
"Control",
"spokesman",
"said",
"the",
"board",
"had",
"not",
"seen",
"the",
"claim",
"and",
"declined",
"to",
"comment",
"."
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[
"Early",
"this",
"century",
",",
"diamond",
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"in",
"the",
"magnificent",
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"the",
"Namib",
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"the",
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"was",
"a",
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"the",
"beach",
".",
"Men",
"would",
"crawl",
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"the",
"sand",
"looking",
"for",
"shiny",
"stones",
".",
"It",
"was",
"as",
"easy",
"as",
"collecting",
"sea",
"shells",
"at",
"Malibu",
".",
"Men",
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"shovels",
"and",
"hand",
"brushes",
",",
"searching",
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"that",
"unusual",
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".",
"But",
"only",
"after",
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"of",
"336",
"gargantuan",
"earthmoving",
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"De",
"Beers",
"Consolidated",
"Mines",
"Ltd.",
",",
"the",
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"'s",
"diamond",
"kingpins",
",",
"do",
"their",
"work",
".",
"Last",
"year",
",",
"43",
"million",
"tons",
"of",
"desert",
"were",
"moved",
"from",
"one",
"dune",
"to",
"another",
"to",
"recover",
"934,242",
"carats",
",",
"which",
"comes",
"to",
"46",
"tons",
"of",
"sand",
"per",
"carat",
",",
"or",
"one-fifth",
"gram",
".",
"Oh",
"yes",
",",
"the",
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"was",
"also",
"pushed",
"back",
"300",
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".",
"``",
"If",
"there",
"'s",
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"there",
",",
"we",
"'ll",
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"them",
",",
"''",
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"Johns",
",",
"De",
"Beers",
"'s",
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"manager",
".",
"Here",
",",
"wedged",
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"shifting",
"dunes",
"and",
"pounding",
"waves",
"at",
"the",
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"'s",
"most",
"inhospitable",
"diamond",
"dig",
",",
"lies",
"the",
"earth",
"'s",
"most",
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"box",
".",
"Thanks",
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"polishing",
"by",
"Mother",
"Nature",
"--",
"first",
"in",
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"current",
"of",
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"Orange",
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"stones",
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"Africa",
"'s",
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",",
"then",
"in",
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"surf",
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",",
"and",
"finally",
"in",
"the",
"coarse",
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"--",
"98",
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"of",
"the",
"diamonds",
"uncovered",
"are",
"of",
"gem",
"quality",
".",
"While",
"other",
"mines",
"might",
"yield",
"more",
"carats",
",",
"a",
"higher",
"percentage",
"of",
"them",
"go",
"to",
"industrial",
"use",
".",
"Since",
"this",
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"chest",
"is",
"too",
"big",
"to",
"fit",
"in",
"a",
"bank",
"vault",
",",
"it",
"has",
"been",
"turned",
"into",
"one",
".",
"Months",
"after",
"railway",
"worker",
"Zacharias",
"Lewala",
"first",
"picked",
"up",
"a",
"diamond",
"from",
"the",
"sand",
"in",
"1908",
",",
"the",
"German",
"colonialists",
"who",
"controlled",
"Namibia",
"proclaimed",
"a",
"wide",
"swath",
"of",
"the",
"desert",
"--",
"about",
"200",
"miles",
"north",
"from",
"the",
"Orange",
"River",
"and",
"60",
"miles",
"inland",
"from",
"the",
"Atlantic",
"--",
"a",
"restricted",
"area",
",",
"a",
"designation",
"normally",
"reserved",
"for",
"military",
"operations",
".",
"When",
"the",
"Germans",
"lost",
"World",
"War",
"I",
",",
"they",
"lost",
"Namibia",
"to",
"South",
"Africa",
"and",
"the",
"diamonds",
"to",
"Ernest",
"Oppenheimer",
",",
"patriarch",
"of",
"Anglo",
"American",
"Corp.",
"and",
"De",
"Beers",
".",
"Today",
",",
"no",
"one",
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"in",
"or",
"out",
"of",
"the",
"restricted",
"area",
"without",
"De",
"Beers",
"'s",
"stingy",
"approval",
".",
"The",
"mining",
"zone",
"has",
"thus",
"remained",
"one",
"of",
"the",
"most",
"desolate",
"places",
"in",
"Africa",
".",
"Ghost",
"towns",
"dot",
"the",
"Namib",
"dunes",
",",
"proving",
"diamonds",
"are",
"n't",
"forever",
".",
"Oranjemund",
",",
"the",
"mine",
"headquarters",
",",
"is",
"a",
"lonely",
"corporate",
"oasis",
"of",
"9,000",
"residents",
".",
"Jackals",
"roam",
"the",
"streets",
"at",
"night",
",",
"and",
"gemsbok",
",",
"hardy",
"antelope",
"with",
"long",
"straight",
"horns",
",",
"wander",
"in",
"from",
"the",
"desert",
"to",
"drink",
"from",
"water",
"sprinklers",
".",
"On",
"most",
"days",
",",
"the",
"desert",
"'s",
"heat",
"and",
"the",
"cool",
"of",
"the",
"ocean",
"combine",
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"create",
"a",
"mist",
"like",
"a",
"damp",
"rag",
".",
"The",
"wind",
",",
"stinging",
"with",
"sand",
",",
"never",
"seems",
"to",
"stop",
".",
"Still",
",",
"miners",
"from",
"all",
"parts",
"of",
"Namibia",
"as",
"well",
"as",
"professional",
"staff",
"from",
"De",
"Beers",
"'s",
"head",
"offices",
"in",
"South",
"Africa",
"and",
"London",
"keep",
"coming",
".",
"And",
"Oranjemund",
"boasts",
"attractions",
"besides",
"diamonds",
".",
"There",
"are",
"six",
"video",
"rental",
"shops",
",",
"three",
"restaurants",
",",
"one",
"cinema",
"and",
"34",
"sports",
"and",
"recreation",
"clubs",
"for",
"everything",
"from",
"cricket",
"to",
"lawn",
"bowling",
".",
"The",
"pride",
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"is",
"the",
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"course",
"--",
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"the",
"largest",
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".",
"Last",
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",",
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"Orange",
"River",
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"the",
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",",
"the",
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"a",
"wall",
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"back",
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".",
"``",
"Nothing",
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"course",
",",
"''",
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"George",
",",
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".",
"Despite",
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"by",
"the",
"new",
"Namibian",
"government",
"following",
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"elections",
"freeing",
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"African",
"control",
",",
"De",
"Beers",
"engineers",
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"mine",
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"for",
"another",
"25",
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",",
"from",
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"10",
".",
"Huge",
"machines",
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"look",
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"though",
"they",
"came",
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"Star",
"Wars",
"desert-battle",
"scene",
"lumber",
"among",
"the",
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".",
"Mechanized",
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"probe",
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"anteaters",
";",
"a",
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"wheellike",
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",",
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",",
"chews",
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";",
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",",
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"plants",
",",
"criss-cross",
"the",
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".",
"Then",
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"wall",
",",
"600",
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"60",
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",",
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".",
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",",
"it",
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".",
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",",
"it",
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"A",
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"looks",
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"a",
"rusting",
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".",
"Engineers",
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",",
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",",
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",",
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"``",
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",",
"''",
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"George",
".",
"``",
"They",
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"good",
"advert",
".",
"''",
"Despite",
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",",
"most",
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"are",
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"--",
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"''",
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",",
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",",
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",",
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".",
"For",
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",",
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"--",
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"15",
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".",
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"One",
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".",
"None",
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"In",
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",",
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"has",
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",",
"particularly",
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".",
"Ironically",
",",
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",",
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"worries",
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"the",
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"is",
"becoming",
"too",
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"too",
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"integrated",
".",
"Meanwhile",
",",
"some",
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"observers",
"say",
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"and",
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"will",
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"and",
"quick-to-prepare",
"foods",
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".",
"V.H.",
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"Horn",
",",
"National",
"Convenience",
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"officer",
",",
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"performance",
"stems",
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"increasing",
"competition",
"from",
"gasoline",
"stations",
"and",
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"grocery",
"stores",
".",
"``",
"Convenience",
"store",
"merchandise",
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"current",
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"meeting",
".",
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"and",
"competitors",
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"the",
"move",
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"a",
"growing",
"need",
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"the",
"stores",
"to",
"expand",
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"customer",
"base",
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"store",
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",",
"cigarettes",
",",
"soda",
"or",
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".",
"``",
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",",
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",",
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".",
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".",
"``",
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",",
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"stores",
".",
"''",
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",",
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"Southland",
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",",
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"stores",
",",
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"Circle",
"K",
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".",
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",",
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",",
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",",
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",",
"''",
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",",
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",",
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",",
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[
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[
"Follow",
"With",
"Care",
"``",
"Work",
"hard",
",",
"play",
"hard",
"''",
"is",
"advice",
"Best",
"taken",
"with",
"some",
"caution",
",",
"For",
"it",
"can",
"bring",
"fitness",
"and",
"success",
"Or",
"a",
"state",
"of",
"total",
"exhaustion",
".",
"--",
"Edward",
"F.",
"Dempsey",
".",
"Double",
"Check",
"The",
"guest",
"paid",
"his",
"bill",
"at",
"the",
"resort",
"hotel",
",",
"and",
"as",
"he",
"departed",
"he",
"noticed",
"a",
"sign",
"saying",
",",
"``",
"Have",
"You",
"Left",
"Anything",
"?",
"''",
"The",
"man",
"went",
"back",
"and",
"spoke",
"to",
"the",
"desk",
"clerk",
":",
"``",
"That",
"sign",
"is",
"wrong",
",",
"''",
"he",
"said",
".",
"``",
"It",
"should",
"read",
",",
"``",
"Have",
"You",
"Anything",
"Left",
"?",
"''",
"--",
"Sam",
"Ewing",
"."
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[
"A",
"volcano",
"will",
"erupt",
"next",
"month",
"on",
"the",
"fabled",
"Strip",
":",
"a",
"60-foot",
"mountain",
"spewing",
"smoke",
"and",
"flame",
"every",
"five",
"minutes",
".",
"The",
"man-made",
"inferno",
"will",
"tower",
"over",
"a",
"man-made",
"lagoon",
"with",
"more",
"than",
"four",
"acres",
"of",
"pools",
",",
"grottoes",
"and",
"waterfalls",
".",
"Visitors",
",",
"whisked",
"from",
"the",
"Strip",
"on",
"a",
"moving",
"walkway",
",",
"will",
"glide",
"over",
"a",
"habitat",
"for",
"rare",
"white",
"tigers",
",",
"which",
"will",
"star",
"in",
"performances",
"by",
"the",
"famed",
"illusionist",
"team",
"of",
"Siegfried",
"&",
"Roy",
".",
"Nearby",
",",
"six",
"dolphins",
"will",
"frolic",
"in",
"a",
"1.5",
"million-gallon",
"saltwater",
"aquarium",
".",
"At",
"the",
"core",
"of",
"all",
"this",
"stands",
"a",
"hotel",
".",
"In",
"the",
"lobby",
"behind",
"its",
"nine-story",
",",
"orchid-strewn",
"atrium",
",",
"a",
"20,000-gallon",
"aquarium",
"will",
"come",
"alive",
"with",
"sharks",
",",
"stingrays",
",",
"angelfish",
",",
"puffers",
"and",
"other",
"creatures",
"of",
"the",
"deep",
".",
"And",
"oh",
",",
"yes",
".",
"There",
"'s",
"a",
"casino",
",",
"the",
"financial",
"heart",
"of",
"it",
"all",
".",
"This",
"is",
"the",
"Mirage",
",",
"a",
"$",
"630",
"million",
"island-fantasy",
"hotel-casino",
"now",
"being",
"completed",
"for",
"opening",
"in",
"November",
"by",
"Golden",
"Nugget",
"Inc",
".",
"It",
"'s",
"the",
"most",
"stunning",
"example",
"of",
"Las",
"Vegas",
"'s",
"concerted",
"effort",
"to",
"transform",
"itself",
"into",
"a",
"world-famous",
"vacation",
"resort",
"for",
"families",
"as",
"well",
"as",
"gamblers",
".",
"Las",
"Vegas",
"has",
"seen",
"nothing",
"quite",
"like",
"it",
"before",
".",
"Not",
"for",
"15",
"years",
"has",
"a",
"big",
"new",
"hotel-casino",
"opened",
"here",
".",
"Now",
"the",
"Mirage",
"and",
"Circus",
"Circus",
"Enterprises",
"Inc.",
"'s",
"$",
"290",
"million",
"Excalibur",
"are",
"going",
"up",
".",
"The",
"Excalibur",
",",
"with",
"a",
"castlelike",
"hotel",
",",
"jousting",
"tournaments",
"and",
"other",
"Arthurian",
"attractions",
",",
"will",
"be",
"able",
"to",
"handle",
"up",
"to",
"30,000",
"visitors",
"a",
"day",
"when",
"it",
"opens",
"in",
"1990",
".",
"If",
"MGM",
"Grand",
"Inc.",
"proceeds",
"with",
"its",
"plan",
"for",
"an",
"amusement",
"park",
"--",
"a",
"$",
"700",
"million",
"movieland",
"resort",
"with",
"a",
"working",
"studio",
",",
"casino",
"and",
"5,000-room",
"hotel",
"that",
"would",
"become",
"Las",
"Vegas",
"'s",
"biggest",
"--",
"the",
"investment",
"in",
"the",
"three",
"properties",
"will",
"total",
"some",
"$",
"1.6",
"billion",
".",
"MGM",
"Grand",
"has",
"agreed",
"to",
"buy",
"a",
"117-acre",
"site",
"for",
"the",
"resort",
"for",
"$",
"93",
"million",
"in",
"cash",
"plus",
"stock",
"currently",
"valued",
"at",
"nearly",
"$",
"30",
"million",
".",
"Smaller",
"projects",
"swell",
"the",
"figure",
"to",
"at",
"least",
"$",
"2.5",
"billion",
".",
"Still",
"other",
"projects",
"that",
"have",
"been",
"announced",
"but",
"not",
"yet",
"started",
"could",
"put",
"expenditures",
"above",
"$",
"3",
"billion",
"over",
"the",
"next",
"few",
"years",
".",
"Stephen",
"A.",
"Wynn",
",",
"who",
"owns",
"29.4",
"%",
"of",
"Golden",
"Nugget",
"'s",
"shares",
",",
"says",
"the",
"Mirage",
"and",
"other",
"projects",
"will",
"help",
"Las",
"Vegas",
"attract",
"a",
"whole",
"new",
"generation",
"of",
"visitors",
".",
"``",
"If",
"you",
"create",
"a",
"wonderment",
",",
"if",
"you",
"create",
"something",
"so",
"exciting",
"that",
"the",
"public",
"dreams",
"of",
"being",
"part",
"of",
"it",
",",
"then",
"they",
"'ll",
"come",
",",
"''",
"he",
"says",
".",
"The",
"projects",
"already",
"under",
"construction",
"will",
"increase",
"Las",
"Vegas",
"'s",
"supply",
"of",
"hotel",
"rooms",
"by",
"11,795",
",",
"or",
"nearly",
"20",
"%",
",",
"to",
"75,500",
".",
"By",
"a",
"rule",
"of",
"thumb",
"of",
"1.5",
"new",
"jobs",
"for",
"each",
"new",
"hotel",
"room",
",",
"Clark",
"County",
"will",
"have",
"nearly",
"18,000",
"new",
"jobs",
".",
"The",
"county",
"at",
"the",
"end",
"of",
"1988",
"had",
"307,000",
"jobs",
",",
"95,400",
"of",
"them",
"in",
"the",
"tourist",
"industry",
".",
"Projects",
"in",
"the",
"talking",
"or",
"blueprint",
"stage",
"would",
"add",
"a",
"further",
"48,000",
"rooms",
".",
"Hotel-casino",
"operators",
"play",
"down",
"the",
"possibility",
"of",
"a",
"labor",
"shortage",
".",
"After",
"all",
",",
"40,000",
"newcomers",
"a",
"year",
"are",
"settling",
"in",
"the",
"Las",
"Vegas",
"Valley",
".",
"But",
"Nevada",
"state",
"labor",
"economists",
"think",
"a",
"shortage",
"is",
"probable",
".",
"Nobody",
"yet",
"seems",
"to",
"have",
"calculated",
"the",
"total",
"number",
"of",
"slot",
"machines",
",",
"crap",
"tables",
"or",
"roulette",
"wheels",
"Las",
"Vegas",
"will",
"add",
"to",
"the",
"enormous",
"store",
"that",
"Lady",
"Luck",
"already",
"guards",
"here",
",",
"much",
"less",
"the",
"ultimate",
"impact",
"of",
"the",
"growth",
"on",
"schools",
"and",
"municipal",
"services",
".",
"``",
"Traffic",
"is",
"certainly",
"a",
"concern",
",",
"as",
"is",
"pollution",
",",
"water",
"and",
"an",
"adequate",
"labor",
"market",
",",
"''",
"says",
"Frank",
"Sain",
",",
"executive",
"director",
"of",
"the",
"Las",
"Vegas",
"Convention",
"and",
"Visitors",
"Bureau",
".",
"City",
"fathers",
"have",
"managed",
"to",
"push",
"through",
"projects",
"that",
"are",
"crucial",
"for",
"tourist",
"growth",
",",
"such",
"as",
"the",
"expansion",
"of",
"McCarran",
"International",
"Airport",
"to",
"accommodate",
"the",
"44",
"%",
"of",
"Las",
"Vegas",
"tourists",
"who",
"fly",
"here",
".",
"This",
"year",
",",
"by",
"one",
"means",
"of",
"transport",
"or",
"another",
",",
"more",
"than",
"18",
"million",
"people",
"will",
"visit",
"the",
"city",
".",
"The",
"expansion",
"will",
"set",
"off",
"a",
"marketing",
"war",
"among",
"the",
"big",
"hotel-casinos",
".",
"Las",
"Vegas",
"promises",
",",
"or",
"threatens",
",",
"to",
"become",
"a",
"giant",
"carnival",
",",
"with",
"rooms",
"to",
"be",
"had",
"for",
"$",
"45",
"a",
"day",
"or",
"less",
",",
"for",
"visitors",
"uninspired",
"solely",
"by",
"gambling",
".",
"Amid",
"a",
"riot",
"of",
"jousting",
"knights",
",",
"circus",
"clowns",
",",
"gold-leaf",
"centurions",
"and",
"creatures",
"of",
"the",
"wild",
",",
"lesser",
"competitors",
"will",
"fall",
".",
"Caesars",
"World",
"Inc.",
"plans",
"to",
"defend",
"its",
"august",
"reputation",
"by",
"sinking",
"$",
"190",
"million",
"into",
"its",
"opulent",
"Caesars",
"Palace",
",",
"next",
"door",
"to",
"the",
"new",
"Mirage",
",",
"and",
"adding",
"a",
"$",
"100",
"million",
"shopping",
"area",
"reminiscent",
"of",
"Rodeo",
"Drive",
".",
"The",
"Palace",
",",
"with",
"its",
"marble",
"fountains",
"and",
"toga",
"parties",
"for",
"high",
"rollers",
",",
"is",
"already",
"well-known",
"for",
"its",
"Caesarean",
"theme",
".",
"The",
"Flamingo",
"Hilton",
",",
"Imperial",
"Palace",
",",
"Frontier",
"and",
"others",
"are",
"pouring",
"millions",
"of",
"dollars",
"into",
"facelifts",
",",
"new",
"room",
"towers",
"and",
"casino",
"floor",
"space",
"just",
"to",
"keep",
"up",
".",
"Where",
"'s",
"this",
"huge",
"amount",
"of",
"investment",
"capital",
"coming",
"from",
"?",
"Golden",
"Nugget",
",",
"Drexel",
"Burnham",
"Lambert",
"Inc.",
"'s",
"first",
"casino",
"client",
",",
"has",
"borrowed",
"on",
"more",
"than",
"$",
"600",
"million",
"worth",
"of",
"mortgage",
"notes",
",",
"mostly",
"sold",
"to",
"private",
"investors",
"by",
"Drexel",
",",
"to",
"build",
"the",
"Mirage",
".",
"Other",
"casino",
"owners",
",",
"Circus",
"Circus",
"among",
"them",
",",
"are",
"financing",
"their",
"expansion",
"with",
"their",
"own",
"cash",
"and",
"revolving",
"credit",
"lines",
"from",
"local",
"lenders",
"such",
"as",
"First",
"Interstate",
"Bank",
"of",
"Nevada",
".",
"Will",
"the",
"investments",
"pay",
"off",
"?",
"The",
"growth",
"of",
"Las",
"Vegas",
"tourism",
"in",
"recent",
"years",
"persuades",
"lenders",
"that",
"they",
"will",
".",
"Casino",
"revenues",
"and",
"hotel",
"occupancy",
"rates",
"are",
"high",
".",
"Last",
"year",
",",
"the",
"tourists",
"left",
"$",
"3",
"billion",
"with",
"the",
"area",
"'s",
"casinos",
",",
"nearly",
"10",
"%",
"more",
"than",
"in",
"1987",
".",
"The",
"people",
"with",
"a",
"stake",
"in",
"Nevada",
"'s",
"gambling",
"industry",
"believe",
"that",
"they",
"have",
"barely",
"tapped",
"the",
"potentially",
"huge",
"family",
"trade",
".",
"``",
"If",
"you",
"build",
"a",
"better",
"mousetrap",
",",
"it",
"will",
"catch",
"more",
"mice",
",",
"''",
"says",
"Fred",
"Benninger",
",",
"chairman",
"of",
"MGM",
"Grand",
".",
"Ellen",
"Cokely",
",",
"a",
"tourist",
"from",
"Alton",
",",
"Ill.",
",",
"seems",
"inclined",
"to",
"agree",
".",
"``",
"I",
"'d",
"love",
"it",
"if",
"my",
"daughter",
"had",
"something",
"else",
"to",
"do",
"here",
",",
"''",
"says",
"Ms.",
"Cokely",
",",
"watching",
"seven-year-old",
"Kristin",
"on",
"the",
"water",
"slide",
"at",
"the",
"Strip",
"'s",
"Wet",
"'n'",
"Wild",
"water",
"park",
".",
"``",
"Two",
"generations",
"ago",
",",
"Dad",
"came",
"to",
"Las",
"Vegas",
"by",
"himself",
"for",
"a",
"little",
"diversion",
",",
"''",
"says",
"Van",
"Heffner",
",",
"executive",
"vice",
"president",
"of",
"the",
"Nevada",
"Hotel",
"and",
"Motel",
"Association",
".",
"``",
"One",
"generation",
"ago",
",",
"Mom",
"joined",
"Dad",
".",
"Now",
",",
"in",
"the",
"'90s",
",",
"we",
"'re",
"headed",
"toward",
"a",
"total",
"resort",
"environment",
".",
"''",
"Only",
"a",
"decade",
"or",
"so",
"ago",
",",
"casino",
"managers",
"balked",
"at",
"in-room",
"TV",
"sets",
"and",
"other",
"fripperies",
"that",
"distracted",
"from",
"gambling",
".",
"Casinos",
"today",
"offer",
"bowling",
"alleys",
",",
"water",
"parks",
",",
"golf",
"courses",
",",
"tennis",
"courts",
",",
"lush",
"swimming",
"pools",
"and",
"other",
"diversions",
",",
"and",
"more",
"such",
"facilities",
"are",
"being",
"designed",
".",
"Despite",
"the",
"new",
"emphasis",
"on",
"the",
"family",
"trade",
",",
"however",
",",
"tourists",
"in",
"search",
"of",
"naughtier",
"fun",
"than",
"gambling",
"seem",
"certain",
"to",
"find",
"it",
",",
"with",
"Las",
"Vegas",
"call",
"girls",
"remaining",
"on",
"the",
"scene",
".",
"A",
"serious",
"economic",
"downturn",
",",
"pessimists",
"observe",
",",
"could",
"hurt",
"the",
"expansionists",
".",
"For",
"now",
",",
"however",
",",
"the",
"naysayers",
"'",
"voices",
"are",
"drowned",
"by",
"the",
"roar",
"of",
"cement",
"mixers",
"and",
"the",
"clanging",
"of",
"construction",
"cranes",
"along",
"the",
"Strip",
".",
"This",
"is",
"no",
"place",
"for",
"pedestrians",
",",
"but",
"at",
"7:30",
"on",
"a",
"recent",
"morning",
",",
"when",
"construction",
"choked",
"traffic",
"at",
"the",
"famous",
"Four",
"Corners",
"intersection",
"to",
"one",
"lane",
",",
"a",
"taxi",
"passenger",
"found",
"it",
"faster",
"to",
"abandon",
"the",
"cab",
"and",
"walk",
"to",
"her",
"destination",
".",
"The",
"ferocious",
"competition",
"probably",
"will",
"drive",
"some",
"poorly",
"managed",
"properties",
"into",
"bankruptcy",
"or",
"new",
"ownership",
".",
"It",
"has",
"happened",
"before",
".",
"The",
"Dunes",
",",
"the",
"Aladdin",
"and",
"the",
"Riviera",
"were",
"all",
"acquired",
"by",
"the",
"present",
"owners",
"from",
"bankruptcy",
"proceedings",
"spawned",
"by",
"the",
"last",
"recession",
",",
"in",
"the",
"early",
"1980s",
".",
"Yet",
"that",
"has",
"n't",
"discouraged",
"investors",
".",
"Some",
"have",
"bought",
"big",
"chunks",
"of",
"Strip",
"property",
"for",
"what",
"may",
"turn",
"into",
"another",
"wave",
"of",
"building",
".",
"Atlantic",
"City",
"casino",
"owner",
"Donald",
"Trump",
"is",
"scouting",
"the",
"Las",
"Vegas",
"market",
"with",
"an",
"eye",
"toward",
"building",
"an",
"appropriately",
"spectacular",
"place",
".",
"Even",
"before",
"the",
"huge",
"new",
"projects",
"began",
",",
"the",
"Strip",
"'s",
"recent",
"expansion",
"squeezed",
"smaller",
"competitors",
".",
"Many",
"blue-collar",
"customers",
"of",
"downtown",
"'s",
"no-frills",
"gambling",
"spots",
"have",
"been",
"lured",
"to",
"the",
"Strip",
"or",
"to",
"Laughlin",
",",
"Nev.",
",",
"a",
"Colorado",
"River",
"town",
"catering",
"to",
"snowbirds",
"and",
"the",
"recreational-vehicle",
"crowd",
".",
"Hotel",
"expansion",
"and",
"an",
"influx",
"of",
"more-discriminating",
"tourists",
"have",
"hurt",
"motels",
".",
"Since",
"1979",
",",
"the",
"number",
"of",
"motel",
"rooms",
"has",
"fallen",
"by",
"17,000",
".",
"Many",
"people",
"here",
"expect",
"a",
"room-rate",
"war",
"as",
"the",
"new",
"projects",
"open",
".",
"``",
"There",
"'s",
"probably",
"going",
"to",
"be",
"some",
"pressure",
"on",
"occupancy",
"and",
"room",
"rates",
"over",
"the",
"next",
"year",
",",
"but",
"after",
"that",
"you",
"should",
"see",
"the",
"market",
"return",
"to",
"80%-plus",
"occupancy",
"and",
"regular",
"rates",
",",
"''",
"says",
"Paul",
"Rubeli",
",",
"casino",
"executive",
"at",
"Ramada",
"Inc.",
",",
"which",
"runs",
"the",
"Tropicana",
".",
"Skeptics",
"wonder",
"whether",
"mega-resorts",
"such",
"as",
"the",
"Mirage",
"will",
"be",
"able",
"to",
"squeeze",
"a",
"profit",
"from",
"their",
"cash",
"flow",
".",
"The",
"Mirage",
"will",
"cost",
"at",
"least",
"$",
"1",
"million",
"a",
"day",
"to",
"operate",
".",
"Mr.",
"Wynn",
"seems",
"confident",
"that",
"it",
"will",
"produce",
"a",
"healthy",
"profit",
",",
"but",
"some",
"securities",
"analysts",
"doubt",
"it",
".",
"Competitors",
"and",
"analysts",
"say",
"that",
"among",
"large",
"existing",
"properties",
"Bally",
"Manufacturing",
"Corp.",
"'s",
"Bally",
"Grand",
"hotel-casino",
"probably",
"will",
"be",
"hardest",
"hit",
"among",
"major",
"properties",
".",
"Bally",
"officials",
"decline",
"to",
"discuss",
"the",
"situation",
".",
"Bally",
"bought",
"the",
"former",
"MGM",
"Grand",
"hotel-casino",
"from",
"Kirk",
"Kerkorian",
"four",
"years",
"ago",
".",
"Only",
"now",
"is",
"it",
"undergoing",
"a",
"badly",
"needed",
"facelift",
".",
"Its",
"parking",
"lot",
"is",
"inconvenient",
",",
"the",
"MGM",
"lion's-head",
"logo",
"still",
"appears",
"in",
"places",
",",
"and",
"customers",
"still",
"call",
"it",
"the",
"Grand",
",",
"rather",
"than",
"the",
"Bally",
"Grand",
".",
"It",
"has",
"a",
"``",
"great",
"location",
",",
"but",
"they",
"'re",
"going",
"to",
"have",
"some",
"real",
"problems",
"when",
"everyone",
"around",
"them",
"opens",
",",
"''",
"says",
"Daniel",
"Lee",
",",
"a",
"Drexel",
"analyst",
".",
"Older",
"properties",
"that",
"still",
"have",
"a",
"1950s",
"image",
"are",
"also",
"vulnerable",
".",
"Any",
"hotel-casino",
"without",
"a",
"strong",
"identity",
"will",
"get",
"whacked",
"by",
"the",
"new",
"competition",
",",
"says",
"Glenn",
"Schaeffer",
",",
"senior",
"vice",
"president",
"of",
"Circus",
"Circus",
".",
"``",
"If",
"you",
"do",
"n't",
"know",
"what",
"you",
"are",
",",
"bigger",
"wo",
"n't",
"make",
"you",
"better",
",",
"''",
"he",
"says",
".",
"``",
"But",
"it",
"'ll",
"sure",
"make",
"you",
"poorer",
".",
"''",
"Circus",
"Circus",
"'s",
"flagship",
"casino",
"has",
"become",
"the",
"envy",
"of",
"competitors",
"for",
"its",
"ability",
"to",
"vacuum",
"cash",
"from",
"the",
"pockets",
"of",
"vacationing",
"families",
".",
"The",
"Circus",
"Circus",
"lures",
"them",
"with",
"low",
"room",
"rates",
",",
"inexpensive",
"buffets",
"and",
"entertainment",
"for",
"children",
"at",
"no",
"extra",
"charge",
".",
"The",
"company",
"'s",
"Excalibur",
"will",
"also",
"appeal",
"to",
"families",
",",
"of",
"course",
".",
"Its",
"castle",
",",
"Mr.",
"Schaeffer",
"says",
",",
"will",
"be",
"``",
"the",
"most",
"compelling",
"piece",
"of",
"folk",
"architecture",
"ever",
"built",
".",
"''",
"Some",
"casino",
"owners",
"have",
"resisted",
"the",
"temptation",
"to",
"add",
"rooms",
".",
"Instead",
",",
"they",
"are",
"spending",
"to",
"reinforce",
"the",
"identity",
"that",
"they",
"believe",
"attracts",
"their",
"customers",
".",
"``",
"More",
"rooms",
"are",
"n't",
"the",
"answer",
"for",
"us",
",",
"''",
"says",
"Caesars",
"World",
"chairman",
"Henry",
"Gluck",
".",
"While",
"his",
"company",
"'s",
"hotel",
"is",
"building",
"a",
"retail",
"complex",
"in",
"Beverly",
"Hills",
"style",
"and",
"redoing",
"existing",
"rooms",
",",
"it",
"has",
"decreased",
"the",
"number",
"of",
"its",
"rooms",
".",
"Some",
"have",
"been",
"combined",
"into",
"suites",
"for",
"the",
"high",
"rollers",
".",
"Caesars",
"has",
"made",
"a",
"specialty",
"of",
"catering",
"to",
"high",
"rollers",
"from",
"abroad",
",",
"who",
"are",
"also",
"being",
"aggressively",
"courted",
"by",
"the",
"Mirage",
",",
"the",
"Las",
"Vegas",
"Hilton",
"and",
"others",
".",
"Other",
",",
"smaller",
"concerns",
"are",
"also",
"pursuing",
"market",
"niches",
"--",
"Hawaiian",
"tourists",
",",
"for",
"example",
",",
"or",
"the",
"local",
"trade",
".",
"``",
"There",
"'s",
"still",
"room",
"for",
"boutique",
"properties",
",",
"''",
"says",
"James",
"Barrett",
",",
"president",
"of",
"MarCor",
"Resorts",
"Inc",
".",
"Off",
"the",
"Strip",
",",
"MarCor",
"is",
"building",
"the",
"Rio",
",",
"a",
"hotel-casino",
"with",
"a",
"Brazilian",
"theme",
"and",
"only",
"430",
"rooms",
"--",
"all",
"of",
"them",
"suites",
".",
"Despite",
"the",
"proliferation",
"of",
"tourist",
"distractions",
",",
"Las",
"Vegans",
"have",
"n't",
"forgot",
"that",
"gambling",
"is",
"still",
"what",
"the",
"town",
"is",
"all",
"about",
".",
"``",
"The",
"days",
"when",
"when",
"the",
"thrust",
"of",
"casinos",
"was",
"all",
"high",
"rollers",
",",
"with",
"no",
"windows",
"and",
"clocks",
"and",
"lots",
"of",
"red",
"and",
"black",
"decor",
",",
"are",
"gone",
",",
"''",
"Mr.",
"Sain",
"of",
"the",
"visitors",
"'",
"bureau",
"says",
".",
"``",
"But",
"93",
"%",
"of",
"tourists",
"still",
"come",
"for",
"gambling",
".",
"We",
"ca",
"n't",
"lose",
"sight",
"of",
"that",
"."
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[
"The",
"New",
"York",
"Stock",
"Exchange",
"is",
"expected",
"to",
"launch",
"its",
"own",
"program",
"trading",
"vehicle",
"today",
",",
"just",
"as",
"controversy",
"over",
"this",
"trading",
"strategy",
"heats",
"up",
".",
"The",
"Big",
"Board",
"this",
"morning",
"plans",
"to",
"begin",
"trading",
"its",
"Exchange",
"Stock",
"Portfolio",
"``",
"basket",
"''",
"product",
",",
"the",
"first",
"program-trading",
"vehicle",
"carrying",
"the",
"exchange",
"'s",
"seal",
"of",
"approval",
".",
"ESPs",
"will",
"allow",
"institutional",
"investors",
"to",
"buy",
"or",
"sell",
"all",
"500",
"stocks",
"in",
"Standard",
"&",
"Poor",
"'s",
"index",
"in",
"a",
"single",
"trade",
"of",
"a",
"minimum",
"of",
"$",
"5",
"million",
".",
"``",
"Customized",
"''",
"baskets",
"of",
"fewer",
"stocks",
"will",
"also",
"be",
"available",
".",
"The",
"Securities",
"and",
"Exchange",
"Commission",
"gave",
"provisional",
"six-month",
"approval",
"to",
"the",
"Big",
"Board",
"basket",
"at",
"a",
"meeting",
"late",
"yesterday",
".",
"The",
"SEC",
"at",
"the",
"same",
"time",
"approved",
"a",
"similar",
"but",
"smaller",
"basket",
"product",
"on",
"the",
"Chicago",
"Board",
"Options",
"Exchange",
",",
"where",
"the",
"minimum",
"will",
"be",
"$",
"1.7",
"million",
".",
"Also",
"approved",
"was",
"a",
"plan",
"to",
"trade",
"stock",
"portfolios",
"by",
"computer",
"after",
"regular",
"hours",
"on",
"the",
"Midwest",
"Stock",
"Exchange",
".",
"The",
"basket",
"products",
"are",
"``",
"an",
"evolutionary",
"step",
"''",
"in",
"solving",
"problems",
"in",
"trading",
"big",
"blocks",
"of",
"stock",
"that",
"came",
"to",
"light",
"in",
"the",
"1987",
"market",
"crash",
",",
"said",
"SEC",
"Commissioner",
"Joseph",
"Grundfest",
".",
"New",
"SEC",
"Chairman",
"Richard",
"Breeden",
",",
"overseeing",
"his",
"first",
"public",
"meeting",
",",
"said",
"there",
"have",
"been",
"concerns",
"that",
"the",
"Big",
"Board",
"'s",
"basket",
"could",
"attract",
"investors",
"with",
"a",
"``",
"short-term",
"perspective",
"''",
"who",
"would",
"rapidly",
"turn",
"over",
"the",
"product",
",",
"thus",
"increasing",
"volatility",
".",
"But",
"Richard",
"Ketchum",
",",
"the",
"SEC",
"'s",
"market",
"regulation",
"chief",
",",
"said",
"he",
"did",
"n't",
"believe",
"``",
"this",
"will",
"spawn",
"dramatic",
"new",
"program-trading",
"strategies",
"that",
"will",
"be",
"destabilizing",
".",
"''",
"The",
"baskets",
"on",
"the",
"Big",
"Board",
"and",
"CBOE",
"--",
"which",
"involve",
"the",
"actual",
"S&P",
"stocks",
",",
"unlike",
"the",
"stock-index",
"contracts",
"currently",
"traded",
"on",
"the",
"Chicago",
"futures",
"markets",
",",
"and",
"index",
"options",
"on",
"the",
"CBOE",
"--",
"will",
"begin",
"trading",
"as",
"critics",
"step",
"up",
"their",
"attacks",
"on",
"program",
"trading",
"and",
"its",
"contributions",
"to",
"the",
"stock",
"market",
"'s",
"wild",
"price",
"swings",
".",
"The",
"Big",
"Board",
"argues",
"that",
"its",
"new",
"product",
"will",
"help",
"rather",
"than",
"hurt",
"the",
"situation",
"by",
"possibly",
"drawing",
"business",
"from",
"more-volatile",
"forms",
"of",
"program",
"trading",
".",
"ESPs",
"are",
"also",
"an",
"attempt",
"by",
"the",
"Big",
"Board",
"to",
"head",
"off",
"the",
"exodus",
"of",
"program",
"trading",
"business",
"to",
"overseas",
"markets",
"such",
"as",
"London",
".",
"Big",
"Board",
"officials",
"also",
"hope",
"Japanese",
"investors",
"will",
"become",
"interested",
"in",
"the",
"exchange",
"'s",
"product",
".",
"Already",
",",
"many",
"of",
"the",
"Big",
"Board",
"'s",
"own",
"floor",
"traders",
"are",
"warning",
"that",
"the",
"ESP",
"baskets",
"are",
"risky",
"and",
"not",
"in",
"the",
"best",
"interests",
"of",
"the",
"investing",
"public",
".",
"The",
"400-member",
"Alliance",
"of",
"Floor",
"Brokers",
"said",
"the",
"new",
"product",
",",
"with",
"the",
"$",
"5",
"million",
"minimum",
",",
"will",
"benefit",
"only",
"big",
"institutional",
"investors",
"and",
"could",
"lead",
"to",
"``",
"wild",
"spasms",
"of",
"volatility",
".",
"''",
"Stockbrokers",
"who",
"cater",
"to",
"individual",
"investors",
"said",
"the",
"Big",
"Board",
"'s",
"new",
"product",
"confirms",
"the",
"exchange",
"does",
"n't",
"want",
"to",
"curtail",
"program",
"trading",
",",
"which",
"last",
"month",
"accounted",
"for",
"a",
"record",
"13.8",
"%",
"of",
"the",
"exchange",
"'s",
"average",
"daily",
"volume",
".",
"``",
"The",
"New",
"York",
"Stock",
"Exchange",
"is",
"losing",
"its",
"cool",
"here",
",",
"''",
"said",
"James",
"Andrews",
",",
"head",
"of",
"institutional",
"trading",
"at",
"Janney",
"Montgomery",
"Scott",
"Inc.",
"in",
"Philadelphia",
".",
"The",
"new",
"stock",
"baskets",
"``",
"are",
"going",
"to",
"make",
"it",
"easier",
"for",
"program",
"trading",
"to",
"be",
"done",
".",
"And",
"it",
"'s",
"going",
"to",
"be",
"done",
"more",
"frequently",
"as",
"the",
"result",
"of",
"having",
"more",
"access",
"to",
"it",
"at",
"different",
"places",
".",
"''",
"Both",
"the",
"Big",
"Board",
"'s",
"Exchange",
"Stock",
"Portfolio",
"and",
"the",
"Chicago",
"exchange",
"'s",
"Market",
"Basket",
"are",
"designed",
"for",
"institutional",
"investors",
".",
"The",
"Big",
"Board",
"lists",
"its",
"targets",
"as",
"pension",
"plans",
",",
"mutual",
"fund",
"managers",
"and",
"index-arbitrage",
"traders",
".",
"In",
"index",
"arbitrage",
",",
"program",
"traders",
"buy",
"and",
"sell",
"stocks",
"and",
"stock-index",
"futures",
"to",
"profit",
"from",
"small",
"price",
"discrepancies",
"between",
"the",
"markets",
".",
"At",
"the",
"same",
"time",
",",
"only",
"four",
"securities",
"firms",
"have",
"signed",
"up",
"with",
"the",
"Big",
"Board",
"to",
"buy",
"and",
"sell",
"ESPs",
"as",
"market",
"makers",
",",
"an",
"unenthusiastic",
"response",
".",
"The",
"market",
"makers",
"so",
"far",
"are",
"CS",
"First",
"Boston",
"Group",
"'s",
"First",
"Boston",
"Corp.",
"unit",
",",
"Morgan",
"Stanley",
"&",
"Co.",
",",
"PaineWebber",
"Group",
"Inc.",
"and",
"Salomon",
"Inc.",
"'s",
"Salomon",
"Brothers",
"Inc.",
"unit",
".",
"Kidder",
",",
"Peabody",
"&",
"Co.",
",",
"a",
"General",
"Electric",
"Co.",
"unit",
"that",
"has",
"become",
"the",
"biggest",
"program",
"trader",
"along",
"with",
"Morgan",
"Stanley",
",",
"is",
"n't",
"a",
"market",
"maker",
",",
"although",
"the",
"Big",
"Board",
"hopes",
"that",
"will",
"change",
".",
"Similarly",
",",
"the",
"Big",
"Board",
"hopes",
"to",
"entice",
"Merrill",
"Lynch",
"&",
"Co",
".",
"Neither",
"has",
"plans",
"to",
"be",
"a",
"market",
"maker",
"for",
"now",
".",
"Traders",
"said",
"major",
"securities",
"firms",
"are",
"reluctant",
"to",
"become",
"market",
"makers",
"because",
"they",
"fear",
"the",
"baskets",
"may",
"attract",
"only",
"limited",
"trading",
".",
"Big",
"Board",
"officials",
"say",
"only",
"25",
"contracts",
"a",
"day",
"may",
"trade",
"at",
"first",
",",
"equivalent",
"to",
"a",
"day",
"'s",
"action",
"at",
"a",
"small",
",",
"regional",
"exchange",
".",
"Even",
"though",
"the",
"Big",
"Board",
"says",
"its",
"product",
"represents",
"a",
"post-crash",
"``",
"reform",
",",
"''",
"some",
"traders",
"suggest",
"that",
"if",
"the",
"new",
"basket",
"had",
"been",
"trading",
"during",
"this",
"month",
"'s",
"Friday",
"the",
"13th",
"market",
"plunge",
",",
"the",
"Dow",
"Jones",
"Industrial",
"Average",
"might",
"have",
"dropped",
"more",
"than",
"the",
"190",
"points",
"it",
"did",
".",
"With",
"the",
"futures",
"locked",
"into",
"a",
"trading",
"halt",
"Oct.",
"13",
"and",
"trading",
"in",
"some",
"individual",
"stock",
"difficult",
",",
"program",
"traders",
"would",
"have",
"undoubtedly",
"fled",
"to",
"the",
"basket",
"system",
",",
"the",
"traders",
"say",
".",
"``",
"If",
"we",
"had",
"the",
"baskets",
",",
"we",
"would",
"be",
"leaving",
"in",
"caskets",
",",
"''",
"one",
"trader",
"said",
".",
"The",
"SEC",
"'s",
"Mr.",
"Breeden",
"said",
"the",
"after-hours",
"trading",
"on",
"the",
"Midwest",
"exchange",
"would",
"help",
"the",
"U.S.",
"win",
"back",
"business",
"that",
"has",
"moved",
"overseas",
"to",
"conduct",
"after-hours",
"trades",
"."
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"as",
"Uncle",
"Sam",
"gets",
"around",
"to",
"arranging",
"it",
".",
"Meanwhile",
",",
"they",
"tackle",
"the",
"mounds",
"of",
"paper",
"--",
"and",
"fantasize",
"about",
"a",
"dream",
"world",
"where",
"bulk-mail",
"postal",
"regulations",
"and",
"government",
"inspectors",
"are",
"banished",
".",
"To",
"find",
"out",
"what",
"red",
"tape",
"riles",
"entrepreneurs",
"most",
",",
"the",
"Journal",
"asked",
"a",
"completely",
"unscientific",
",",
"random",
"sample",
"of",
"business",
"owners",
"to",
"fantasize",
"about",
"the",
"forms",
"and",
"regulations",
"they",
"would",
"most",
"like",
"to",
"get",
"lost",
"in",
"the",
"mail",
".",
"Some",
"entrepreneurs",
"say",
"the",
"red",
"tape",
"they",
"most",
"love",
"to",
"hate",
"is",
"red",
"tape",
"they",
"would",
"also",
"hate",
"to",
"lose",
".",
"They",
"concede",
"that",
"much",
"of",
"the",
"government",
"meddling",
"that",
"torments",
"them",
"is",
"essential",
"to",
"the",
"public",
"good",
",",
"and",
"even",
"to",
"their",
"own",
"businesses",
".",
"Rules",
"that",
"set",
"standards",
"for",
"products",
"or",
"govern",
"business",
"behavior",
",",
"generally",
"the",
"best",
"regarded",
"form",
"of",
"red",
"tape",
",",
"``",
"create",
"a",
"level",
"playing",
"field",
"and",
"keep",
"unscrupulous",
"competitors",
"away",
",",
"''",
"says",
"Sidney",
"West",
",",
"president",
"of",
"TechDesign",
"International",
"Inc.",
",",
"a",
"Springfield",
",",
"Va.",
",",
"business",
"that",
"designs",
"telecommunication",
"and",
"other",
"products",
".",
"Mr.",
"West",
"cites",
"the",
"Federal",
"Communications",
"Commission",
"and",
"its",
"standards",
"for",
"telecommunications",
"equipment",
":",
"``",
"They",
"monitor",
"product",
"quality",
"and",
"prevent",
"junk",
"from",
"flooding",
"the",
"market",
".",
"''",
"Some",
"gripes",
"about",
"red",
"tape",
"are",
"predictable",
":",
"Architects",
"complain",
"about",
"a",
"host",
"of",
"building",
"regulations",
",",
"auto",
"leasing",
"companies",
"about",
"car",
"insurance",
"rules",
".",
"Determining",
"when",
"handicapped",
"access",
"is",
"required",
"can",
"be",
"a",
"nightmare",
"for",
"architects",
",",
"says",
"Mark",
"Dooling",
",",
"president",
"of",
"Dooling",
"&",
"Co.",
",",
"a",
"Newton",
",",
"Mass.",
",",
"architectural",
"firm",
".",
"There",
"is",
"such",
"a",
"maze",
"of",
"federal",
",",
"state",
"and",
"local",
"codes",
"that",
"``",
"building",
"inspectors",
"are",
"backing",
"away",
"from",
"interpreting",
"them",
",",
"''",
"Mr.",
"Dooling",
"says",
".",
"Taxi",
",",
"leasing",
"and",
"other",
"companies",
"that",
"maintain",
"fleets",
"of",
"vehicles",
"devote",
"substantial",
"resources",
"to",
"complying",
"with",
"state",
"insurance",
"laws",
"and",
"a",
"host",
"of",
"agencies",
".",
"``",
"It",
"'s",
"very",
"costly",
"and",
"time-consuming",
",",
"''",
"says",
"Phil",
"Rosen",
",",
"a",
"partner",
"in",
"Fleet",
"&",
"Leasing",
"Management",
"Inc.",
",",
"a",
"Boston",
"car-leasing",
"company",
".",
"One",
"senior",
"executive",
"at",
"his",
"firm",
"spends",
"nearly",
"20",
"%",
"of",
"his",
"time",
"on",
"insurance",
",",
"he",
"says",
".",
"Other",
"forms",
"of",
"red",
"tape",
"are",
"more",
"pervasive",
".",
"The",
"most",
"onerous",
",",
"many",
"entrepreneurs",
"say",
",",
"is",
"the",
"record-keeping",
"and",
"filing",
"required",
"by",
"tax",
"authorities",
".",
"Complying",
"with",
"environmental",
"and",
"workplace",
"regulations",
"runs",
"a",
"close",
"second",
".",
"But",
"gripes",
"run",
"the",
"gamut",
".",
"Here",
"is",
"the",
"red",
"tape",
"that",
"irks",
"surveyed",
"business",
"owners",
"the",
"most",
":",
"ENVIRONMENTAL",
"REGULATIONS",
":",
"Next",
"to",
"medical",
"insurance",
",",
"``",
"costs",
"of",
"compliance",
"''",
"are",
"the",
"fastest-growing",
"expense",
"at",
"Impco",
"Inc.",
",",
"a",
"Providence",
",",
"R.I.",
",",
"chemical",
"company",
".",
"Peter",
"Gebhard",
",",
"the",
"company",
"'s",
"owner",
",",
"says",
"spending",
"on",
"regulatory",
"paper",
"work",
"and",
"the",
"people",
"to",
"do",
"it",
"--",
"mostly",
"to",
"comply",
"with",
"federal",
",",
"state",
"and",
"local",
"environmental",
"laws",
"--",
"will",
"rise",
"almost",
"30",
"%",
"this",
"year",
"to",
"$",
"100,000",
".",
"Mr.",
"Gebhard",
"adds",
"that",
"spending",
"on",
"environmental",
"red",
"tape",
"amounts",
"to",
"between",
"6.5",
"%",
"and",
"7.5",
"%",
"of",
"Impco",
"'s",
"total",
"operating",
"expenses",
".",
"Eastern",
"Reproduction",
"Corp.",
",",
"a",
"Waltham",
",",
"Mass.",
",",
"maker",
"of",
"thin",
"metal",
"precision",
"parts",
",",
"must",
"report",
"to",
"five",
"federal",
"and",
"state",
"agencies",
"as",
"well",
"as",
"to",
"local",
"fire",
",",
"police",
",",
"hospital",
"and",
"plumbing",
"authorities",
",",
"says",
"Robert",
"Maguire",
",",
"president",
".",
"One",
"state",
"environmental",
"regulator",
"returned",
"a",
"report",
"because",
"``",
"it",
"was",
"n't",
"heavy",
"enough",
",",
"it",
"could",
"n't",
"have",
"been",
"correct",
",",
"''",
"Mr.",
"Maguire",
"says",
".",
"WITHHOLDING",
"RULES",
":",
"Employers",
"must",
"deposit",
"withholding",
"taxes",
"exceeding",
"$",
"3,000",
"within",
"three",
"days",
"after",
"payroll",
"--",
"or",
"pay",
"stiff",
"penalties",
"--",
"and",
"that",
"'s",
"a",
"big",
"problem",
"for",
"small",
"businesses",
".",
"It",
"'s",
"especially",
"nettlesome",
"``",
"if",
"you",
"'re",
"on",
"the",
"road",
"and",
"you",
"'re",
"the",
"one",
"responsible",
",",
"''",
"says",
"Eddie",
"Brown",
",",
"president",
"of",
"Brown",
"Capital",
"Management",
"Inc.",
",",
"a",
"Baltimore",
"money-management",
"firm",
".",
"EMPLOYEE",
"MANUALS",
":",
"Revising",
"employee",
"manuals",
"on",
"pensions",
",",
"health",
"care",
"and",
"other",
"subjects",
"costs",
"over",
"$",
"25,000",
"a",
"year",
"for",
"Bert",
"Giguiere",
",",
"president",
"of",
"Professional",
"Agricultural",
"Management",
"Inc.",
",",
"a",
"Fresno",
",",
"Calif.",
",",
"provider",
"of",
"business",
"services",
"to",
"farmers",
".",
"An",
"employer",
"leaves",
"itself",
"open",
"to",
"a",
"great",
"deal",
"of",
"liability",
"if",
"its",
"employee",
"manuals",
"do",
"n't",
"reflect",
"the",
"most",
"recent",
"laws",
",",
"he",
"says",
".",
"But",
"the",
"ever-changing",
"laws",
"are",
"usually",
"so",
"complicated",
"and",
"confusing",
"that",
"``",
"you",
"need",
"professionals",
"to",
"help",
"you",
";",
"you",
"ca",
"n't",
"do",
"it",
"yourself",
",",
"''",
"he",
"adds",
".",
"PENSION",
"AND",
"PROFIT-SHARING",
"RULES",
":",
"Complying",
"with",
"these",
"is",
"enough",
"to",
"make",
"business",
"owners",
"look",
"forward",
"to",
"their",
"own",
"pension",
"days",
".",
"Yearly",
"changes",
"in",
"federal",
"benefit",
"laws",
"force",
"small",
"businesses",
"to",
"repeatedly",
"re-evaluate",
"and",
"redesign",
"existing",
"plans",
".",
"Alice",
"Fixx",
",",
"who",
"runs",
"her",
"own",
"public-relations",
"concern",
"in",
"New",
"York",
",",
"says",
"she",
"has",
"had",
"to",
"overhaul",
"her",
"pension",
"and",
"profit-sharing",
"plans",
"three",
"times",
"in",
"the",
"past",
"three",
"years",
".",
"``",
"It",
"does",
"n't",
"increase",
"benefits",
",",
"but",
"it",
"'s",
"costly",
"and",
"time-consuming",
",",
"''",
"Ms.",
"Fixx",
"says",
".",
"Compliance",
"added",
"15",
"%",
"to",
"20",
"%",
"to",
"her",
"accounting",
"bill",
"last",
"year",
",",
"she",
"says",
".",
"SALES",
"TAX",
"RECORDS",
":",
"Advertising",
"agencies",
"and",
"other",
"service",
"companies",
"are",
"exempt",
"from",
"city",
"and",
"state",
"sales",
"tax",
"in",
"most",
"locales",
"--",
"but",
"the",
"exemption",
"comes",
"at",
"a",
"price",
"of",
"exhaustive",
"records",
"and",
"rigorous",
"reviews",
".",
"To",
"justify",
"their",
"exempt",
"status",
"and",
"avoid",
"penalties",
",",
"these",
"businesses",
"must",
"show",
"once",
"a",
"year",
"that",
"each",
"and",
"every",
"transaction",
"on",
"which",
"they",
"did",
"n't",
"pay",
"sales",
"tax",
"was",
"a",
"legitimate",
"business",
"expense",
".",
"``",
"You",
"need",
"one",
"person",
"to",
"just",
"take",
"care",
"of",
"sales",
"tax",
",",
"''",
"says",
"Jennie",
"Tong",
",",
"executive",
"vice",
"president",
"of",
"Lee",
"Liu",
"&",
"Tong",
"Advertising",
"Inc.",
",",
"New",
"York",
"."
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"nmod",
"cc",
"compound",
"compound",
"conj",
"punct",
"compound",
"appos",
"punct"
] |
[
"Office",
"Market",
"Weakens",
"In",
"Overbuilt",
"Northeast",
"THE",
"NORTHEAST",
"office",
"market",
"is",
"feeling",
"serious",
"aftereffects",
"of",
"the",
"giddy",
"overbuilding",
"of",
"the",
"1980s",
".",
"Foreclosures",
"and",
"other",
"signs",
"of",
"financial",
"distress",
",",
"most",
"often",
"associated",
"with",
"the",
"real",
"estate",
"market",
"in",
"the",
"Southwest",
",",
"are",
"surfacing",
"in",
"the",
"suburban",
"office",
"market",
"of",
"the",
"once",
"thriving",
"Northeast",
".",
"Some",
"projects",
"are",
"now",
"in",
"the",
"hands",
"of",
"lenders",
",",
"including",
"a",
"425,000-square-foot",
"office",
"facility",
"in",
"Little",
"Falls",
",",
"N.J",
".",
"The",
"owners",
"of",
"a",
"32-acre",
"hotel",
"and",
"office",
"complex",
"in",
"King",
"of",
"Prussia",
",",
"Pa.",
",",
"have",
"advertised",
"for",
"new",
"financing",
".",
"Rising",
"office",
"vacancy",
"rates",
"in",
"Fairfield",
"County",
",",
"Conn.",
",",
"have",
"builders",
"and",
"bankers",
"scrambling",
"to",
"restructure",
"loans",
".",
"And",
"in",
"suburban",
"Boston",
",",
"developers",
"are",
"bracing",
"for",
"cutbacks",
"in",
"the",
"computer",
"industry",
",",
"a",
"major",
"user",
"of",
"office",
"space",
".",
"Many",
"troubled",
"properties",
"have",
"n't",
"been",
"foreclosed",
"on",
"and",
"are",
"hard",
"to",
"identify",
",",
"says",
"Albert",
"I.",
"Berger",
",",
"who",
"heads",
"the",
"Secaucus",
",",
"N.J.",
",",
"office",
"of",
"Helmsley-Spear",
"Inc.",
",",
"a",
"real",
"estate",
"brokerage",
".",
"Owners",
"are",
"voluntarily",
"--",
"and",
"quietly",
"--",
"turning",
"over",
"properties",
"to",
"lenders",
"through",
"``",
"deeds",
"in",
"lieu",
"of",
"foreclosure",
".",
"''",
"Often",
",",
"developers",
"stay",
"on",
"as",
"property",
"manager",
".",
"Real",
"estate",
"analyst",
"Lloyd",
"Lynford",
"says",
"the",
"Northeast",
"'s",
"distress",
"is",
"masked",
"by",
"relatively",
"low",
"vacancy",
"rates",
".",
"But",
"in",
"today",
"'s",
"overbuilt",
"market",
",",
"tenants",
"have",
"many",
"choices",
"and",
"are",
"negotiating",
"low",
"rents",
"that",
"squeeze",
"building",
"owners",
".",
"On",
"average",
",",
"Mr.",
"Lynford",
"says",
",",
"it",
"now",
"takes",
"three",
"to",
"3",
"1/2",
"years",
"to",
"fill",
"new",
"office",
"space",
",",
"compared",
"with",
"2",
"1/2",
"years",
"in",
"1988",
".",
"Beverly",
"Hills",
"Comes",
"To",
"Suburban",
"Tokyo",
"WHY",
"SHOULD",
"the",
"Japanese",
"cross",
"the",
"Pacific",
"to",
"buy",
"American",
"real",
"estate",
"when",
"they",
"can",
"simply",
"recreate",
"it",
"at",
"home",
"?",
"Tokyu",
"Development",
"Corp.",
"is",
"spending",
"$",
"500",
"million",
"to",
"build",
"American-style",
"luxury",
"homes",
"in",
"suburban",
"Tokyo",
"with",
"rarely",
"seen",
"back",
"yards",
",",
"front",
"yards",
",",
"swimming",
"pools",
"and",
"tennis",
"courts",
".",
"The",
"Japanese",
"company",
"hired",
"Richardson",
"Nagy",
"Martin",
",",
"a",
"Newport",
"Beach",
",",
"Calif.",
",",
"architectural",
"firm",
",",
"to",
"design",
"what",
"the",
"Japanese",
"press",
"has",
"dubbed",
"``",
"the",
"Beverly",
"Hills",
"of",
"Tokyo",
".",
"''",
"Instead",
"of",
"Japan",
"'s",
"typical",
"small",
"homes",
"clustered",
"on",
"narrow",
"streets",
"with",
"no",
"sidewalks",
",",
"the",
"new",
"``",
"One",
"Hundred",
"Hills",
"''",
"development",
"will",
"offer",
"65",
"houses",
"on",
"half-acre",
"lots",
".",
"That",
"'s",
"more",
"than",
"10",
"times",
"the",
"usual",
"housing",
"site",
"size",
".",
"Buyers",
"with",
"$",
"6",
"million",
"to",
"spend",
"can",
"select",
"from",
"11",
"designs",
",",
"including",
"a",
"Mediterranean-inspired",
"California",
"style",
",",
"a",
"traditional",
"Yankee",
"look",
"and",
"designs",
"inspired",
"by",
"Midwestern",
"architect",
"Frank",
"Lloyd",
"Wright",
".",
"There",
"are",
"spacious",
"living",
"rooms",
"and",
"baths",
",",
"plus",
"a",
"master",
"grandparents",
"suite",
"and",
"a",
"foyer",
"for",
"removing",
"shoes",
"to",
"suit",
"Japanese",
"life",
"styles",
".",
"Exteriors",
"are",
"faced",
"with",
"brick",
",",
"wood",
"or",
"stone",
",",
"but",
"the",
"homes",
"are",
"made",
"of",
"steel-reinforced",
"concrete",
".",
"``",
"We",
"were",
"disappointed",
"we",
"could",
"n't",
"use",
"wood",
",",
"''",
"says",
"architect",
"Walter",
"J.",
"Richardson",
",",
"``",
"but",
"the",
"Japanese",
"only",
"want",
"stronger",
"materials",
".",
"''",
"At",
"$",
"1,000",
"per",
"square",
"foot",
",",
"the",
"Japanese",
"want",
"the",
"feeling",
"of",
"indestructibility",
",",
"he",
"explains",
",",
"not",
"to",
"mention",
"protection",
"from",
"possible",
"earthquake",
"damage",
".",
"Housing",
"Developers",
"Try",
"Brand-Name",
"Buildings",
"RESIDENTIAL",
"builders",
",",
"faced",
"with",
"a",
"more",
"competitive",
"market",
",",
"are",
"turning",
"to",
"a",
"traditional",
"consumer",
"marketing",
"technique",
"to",
"establish",
"brand-name",
"identity",
".",
"``",
"One",
"of",
"the",
"difficulties",
"people",
"in",
"real",
"estate",
"have",
"is",
"that",
"each",
"product",
"is",
"like",
"starting",
"a",
"new",
"company",
",",
"or",
"starting",
"a",
"new",
"line",
"in",
"the",
"fashion",
"business",
",",
"''",
"says",
"L.",
"Robert",
"Lieb",
"president",
"of",
"Mountain",
"Development",
"Corp.",
"in",
"West",
"Paterson",
",",
"N.J",
".",
"So",
"he",
"'s",
"using",
"``",
"river",
"''",
"in",
"many",
"project",
"names",
".",
"``",
"It",
"'ll",
"never",
"be",
"like",
"what",
"Bristol-Myers",
"does",
",",
"''",
"he",
"adds",
",",
"``",
"but",
"it",
"helps",
"establish",
"recognition",
"with",
"the",
"public",
"--",
"and",
"with",
"banks",
".",
"''",
"Weingarten-Siegel",
"Group",
"Inc.",
"of",
"Manalapan",
",",
"N.J.",
",",
"has",
"built",
"Cross",
"Creek",
"Pointe",
",",
"Allegro",
"Pointe",
"and",
"other",
"Pointes",
"in",
"New",
"Jersey",
".",
"Caspi",
"Development",
"Corp",
"of",
"Armonk",
",",
"N.Y.",
",",
"has",
"developed",
"two",
"apartment",
"buildings",
"called",
"Classic",
"and",
"plans",
"a",
"third",
".",
"Developer",
"Steve",
"Caspi",
"says",
"the",
"same",
"brand",
"name",
"indicates",
"consistent",
"quality",
",",
"``",
"regardless",
"of",
"location",
",",
"design",
"or",
"amenities",
".",
"''",
"The",
"leader",
"in",
"real",
"estate",
"brand",
"names",
"is",
"developer",
"Ara",
"Hovnanian",
".",
"His",
"entry-price",
"condos",
"are",
"labeled",
"Society",
"Hill",
".",
"Beacon",
"Hill",
"is",
"for",
"``",
"move-up",
"''",
"town",
"houses",
",",
"and",
"Nob",
"Hill",
",",
"for",
"single-family",
"houses",
".",
"Because",
"of",
"standardized",
"designs",
",",
"Mr.",
"Hovnanian",
"says",
",",
"``",
"a",
"buyer",
"can",
"visualize",
"Society",
"Hill",
"regardless",
"of",
"where",
"it",
"is",
".",
"''",
"Quake",
"Not",
"Likely",
"to",
"Jolt",
"The",
"Commercial",
"Market",
"THE",
"EARTHQUAKE",
"in",
"San",
"Francisco",
"has",
"sent",
"few",
"tremors",
"through",
"the",
"hearts",
"of",
"real",
"estate",
"investors",
".",
"``",
"I",
"think",
"there",
"'s",
"a",
"disease",
"called",
"buyer",
"'s",
"regret",
",",
"and",
"I",
"'m",
"sure",
"it",
"'s",
"running",
"rampant",
"at",
"this",
"moment",
",",
"but",
"it",
"gets",
"cured",
"in",
"a",
"short",
"period",
"of",
"time",
",",
"''",
"says",
"Kenneth",
"Leventhal",
",",
"co-managing",
"partner",
"of",
"Kenneth",
"Leventhal",
"&",
"Co.",
",",
"a",
"Los",
"Angeles",
"accounting",
"firm",
"specializing",
"in",
"real",
"estate",
".",
"``",
"If",
"I",
"were",
"buying",
"a",
"building",
"in",
"San",
"Francisco",
"now",
"the",
"first",
"thing",
"I",
"'d",
"do",
"is",
"insist",
"on",
"a",
"structural",
"inspection",
",",
"then",
"I",
"'d",
"delay",
"a",
"little",
",",
"stall",
"a",
"little",
".",
"''",
"But",
"like",
"other",
"real",
"estate",
"professionals",
"accustomed",
"to",
"California",
"'s",
"quake",
"risks",
",",
"Mr.",
"Leventhal",
"anticipates",
"little",
"long-term",
"change",
"in",
"the",
"city",
"'s",
"commercial",
"real",
"estate",
"market",
".",
"Still",
",",
"local",
"builders",
"are",
"eager",
"to",
"tell",
"the",
"world",
"that",
"most",
"of",
"San",
"Francisco",
"does",
"n't",
"look",
"like",
"the",
"TV",
"images",
"of",
"destruction",
".",
"Planners",
"of",
"the",
"Urban",
"Land",
"Institute",
"real",
"estate",
"conference",
"this",
"week",
"hastily",
"added",
"a",
"panel",
"on",
"the",
"quake",
"'s",
"effects",
".",
"``",
"The",
"message",
"is",
"we",
"build",
"'em",
"right",
",",
"''",
"says",
"Peter",
"Bedford",
",",
"a",
"California",
"developer",
"and",
"officer",
"at",
"Urban",
"Land",
"Institute",
".",
"``",
"There",
"'s",
"seven",
"million",
"square",
"feet",
"of",
"space",
"that",
"'s",
"doing",
"great",
"."
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"restaurant",
"operations",
".",
"For",
"rival",
"liquor",
"companies",
",",
"the",
"Whitbread",
"auction",
"is",
"a",
"rare",
"opportunity",
"to",
"acquire",
"valuable",
"brands",
".",
"``",
"It",
"'s",
"not",
"very",
"often",
"something",
"like",
"this",
"comes",
"up",
",",
"''",
"said",
"Ron",
"Littleboy",
",",
"a",
"liquor",
"company",
"analyst",
"at",
"Nomura",
"Research",
"Institute",
"in",
"London",
".",
"``",
"The",
"division",
"will",
"be",
"sold",
"off",
"quite",
"rapidly",
",",
"''",
"predicted",
"Neill",
"Junor",
",",
"an",
"analyst",
"at",
"London",
"brokers",
"County",
"NatWest",
"WoodMac",
".",
"Among",
"possible",
"buyers",
",",
"Grand",
"Metropolitan",
"PLC",
"might",
"find",
"Beefeater",
"a",
"useful",
"addition",
"to",
"its",
"portfolio",
".",
"Grand",
"Met",
"owns",
"Bombay",
"gin",
",",
"the",
"No.",
"3",
"imported",
"gin",
"in",
"the",
"U.S.",
";",
"rival",
"Guinness",
"PLC",
"has",
"the",
"No.",
"1",
"imported",
"brand",
",",
"Tanqueray",
".",
"The",
"Whitbread",
"spirits",
"auction",
"``",
"is",
"an",
"extremely",
"interesting",
"development",
"...",
"and",
"naturally",
"we",
"'ll",
"be",
"considering",
"it",
"carefully",
",",
"''",
"a",
"Grand",
"Met",
"spokesman",
"said",
".",
"Guinness",
",",
"which",
"owns",
"several",
"leading",
"whiskey",
"brands",
"plus",
"Gordon",
"'s",
"gin",
",",
"the",
"world",
"'s",
"No.",
"1",
"gin",
",",
"is",
"considered",
"less",
"likely",
"to",
"bid",
"for",
"the",
"Whitbread",
"spirits",
".",
"A",
"Guinness",
"spokesman",
"declined",
"to",
"comment",
".",
"Two",
"other",
"global",
"liquor",
"giants",
",",
"Canada",
"'s",
"Seagram",
"Co.",
"and",
"Britain",
"'s",
"Allied-Lyons",
"PLC",
",",
"also",
"are",
"possible",
"buyers",
".",
"Seagram",
"'s",
"gin",
"is",
"the",
"world",
"'s",
"No.",
"2",
"gin",
"brand",
",",
"but",
"the",
"company",
"does",
"n't",
"own",
"any",
"of",
"the",
"major",
"gin",
"brands",
"imported",
"in",
"the",
"U.S.",
".",
"Allied-Lyons",
",",
"while",
"powerful",
"in",
"whiskey",
",",
"does",
"n't",
"own",
"any",
"major",
"white-spirit",
"brands",
".",
"``",
"We",
"will",
"certainly",
"have",
"to",
"take",
"a",
"look",
"at",
"''",
"the",
"Whitbread",
"spirits",
"business",
",",
"an",
"Allied-Lyons",
"spokesman",
"said",
".",
"``",
"We",
"would",
"certainly",
"like",
"to",
"have",
"a",
"major",
"white-spirits",
"brand",
"in",
"our",
"portfolio",
".",
"''",
"A",
"Seagram",
"spokesman",
"in",
"New",
"York",
"would",
"n't",
"comment",
".",
"Smaller",
"liquor",
"companies",
",",
"such",
"as",
"Brown-Forman",
"Corp.",
"and",
"American",
"Brands",
"Inc.",
"of",
"the",
"U.S.",
",",
"also",
"are",
"likely",
"to",
"be",
"interested",
".",
"Such",
"companies",
"``",
"are",
"increasingly",
"being",
"left",
"behind",
"''",
"in",
"the",
"global",
"liquor",
"business",
",",
"says",
"Nomura",
"'s",
"Mr.",
"Littleboy",
".",
"In",
"New",
"York",
",",
"a",
"spokesman",
"for",
"American",
"Brands",
"would",
"n't",
"comment",
".",
"Brown-Forman",
",",
"a",
"Louisville",
",",
"Ky.",
"distiller",
",",
"also",
"declined",
"to",
"comment",
".",
"Whitbread",
"'s",
"wine",
",",
"spirits",
"and",
"soft-drink",
"operations",
"had",
"trading",
"profit",
"of",
"#",
"35.4",
"million",
"on",
"sales",
"of",
"#",
"315.5",
"million",
"in",
"the",
"year",
"ended",
"Feb.",
"25",
".",
"The",
"company",
",",
"which",
"is",
"retaining",
"most",
"of",
"its",
"wine",
"and",
"all",
"of",
"its",
"soft-drink",
"interests",
",",
"did",
"n't",
"break",
"out",
"results",
"for",
"the",
"businesses",
"it",
"plans",
"to",
"sell",
".",
"But",
"analysts",
"estimate",
"their",
"trading",
"profit",
"at",
"#",
"30",
"million",
".",
"Whitbread",
"had",
"total",
"pretax",
"profit",
"in",
"the",
"year",
"ended",
"Feb.",
"25",
"of",
"#",
"223.2",
"million",
",",
"on",
"sales",
"of",
"#",
"2.26",
"billion",
".",
"Whitbread",
"'s",
"spirits",
"auction",
"occurs",
"amid",
"a",
"parallel",
"shakeup",
"in",
"the",
"British",
"beer",
"industry",
".",
"Earlier",
"this",
"year",
",",
"the",
"government",
"announced",
"plans",
"to",
"foster",
"increased",
"competition",
"in",
"the",
"industry",
".",
"British",
"brewers",
"currently",
"own",
"thousands",
"of",
"pubs",
",",
"which",
"in",
"turn",
"sell",
"only",
"the",
"breweries",
"'",
"beer",
"and",
"soft",
"drinks",
".",
"Under",
"new",
"rules",
",",
"many",
"of",
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"country",
"'s",
"pubs",
"would",
"become",
"``",
"free",
"houses",
",",
"''",
"selling",
"beers",
"of",
"their",
"choice",
".",
"Whitbread",
"now",
"intends",
"to",
"bolster",
"its",
"brewing",
"interests",
",",
"in",
"an",
"effort",
"to",
"grab",
"a",
"share",
"of",
"sales",
"to",
"free",
"houses",
".",
"The",
"company",
",",
"which",
"last",
"month",
"paid",
"#",
"50.7",
"million",
"for",
"regional",
"British",
"brewer",
"Boddington",
"Group",
"PLC",
",",
"has",
"about",
"13",
"%",
"of",
"the",
"British",
"beer",
"market",
".",
"Whitbread",
"also",
"owns",
"the",
"license",
"to",
"brew",
"and",
"distribute",
"Heineken",
"and",
"Stella",
"Artois",
"beers",
"in",
"Britain",
".",
"In",
"addition",
",",
"Whitbread",
"intends",
"to",
"focus",
"on",
"its",
"newer",
"hotel",
",",
"liquor",
"store",
"and",
"restaurant",
"businesses",
"in",
"Europe",
"and",
"North",
"America",
".",
"In",
"Britain",
",",
"those",
"interests",
"include",
"the",
"Beefeater",
"steakhouse",
"chain",
"and",
"joint",
"ownership",
"with",
"PepsiCo",
"Inc.",
"of",
"the",
"country",
"'s",
"Pizza",
"Hut",
"chain",
".",
"In",
"Canada",
"and",
"the",
"U.S.",
",",
"Whitbread",
"owns",
"The",
"Keg",
"chain",
"of",
"steak",
"and",
"seafood",
"restaurants",
".",
"Focusing",
"on",
"beer",
",",
"restaurants",
"and",
"hotels",
"means",
"``",
"we",
"can",
"concentrate",
"our",
"skills",
"and",
"resources",
"more",
"effectively",
",",
"''",
"Peter",
"Jarvis",
",",
"Whitbread",
"'s",
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"director",
",",
"said",
"in",
"a",
"statement",
".",
"The",
"spirits",
"business",
"``",
"would",
"require",
"substantial",
"additional",
"investment",
"to",
"enable",
"it",
"to",
"compete",
"effectively",
"in",
"the",
"first",
"division",
"of",
"global",
"players",
".",
"''",
"Whitbread",
"also",
"announced",
"that",
"Mr.",
"Jarvis",
",",
"who",
"is",
"48",
",",
"will",
"become",
"the",
"company",
"'s",
"chief",
"executive",
"March",
"1",
".",
"At",
"that",
"time",
"Sam",
"Whitbread",
",",
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"chairman",
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"a",
"descendant",
"of",
"its",
"18th-century",
"founder",
",",
"will",
"retire",
"from",
"executive",
"duties",
".",
"He",
"will",
"retain",
"the",
"honorary",
"title",
"of",
"non-executive",
"chairman",
"."
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"$",
"9.76",
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"of",
"7",
"%",
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"bonds",
"due",
"2003",
",",
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".",
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"11,775,000",
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"term",
"bonds",
"due",
"2006",
"and",
"the",
"$",
"13,865,000",
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"bonds",
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"2009",
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"n't",
"being",
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".",
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"%",
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"2000",
".",
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"and",
"rated",
"triple-A",
"by",
"Moody",
"'s",
"and",
"S&P",
".",
"Federal",
"Home",
"Loan",
"Mortgage",
"Corp.",
"--",
"$",
"500",
"million",
"of",
"Remic",
"mortgage",
"securities",
"being",
"offered",
"in",
"12",
"classes",
"by",
"Salomon",
"Brothers",
"Inc",
".",
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"105",
",",
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"Mac",
"9",
"1/2",
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".",
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",",
"$",
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",",
"Peabody",
"&",
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",",
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"106",
",",
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"1/2",
"%",
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".",
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",",
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"8.70",
"%",
",",
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"securities",
",",
"to",
"10.37",
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",",
"a",
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"of",
"230",
"basis",
"points",
"over",
"20-year",
"Treasurys",
".",
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"bring",
"Freddie",
"Mac",
"'s",
"1989",
"Remic",
"issuance",
"to",
"$",
"32.6",
"billion",
"and",
"its",
"total",
"volume",
"to",
"$",
"46.5",
"billion",
"since",
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"program",
"began",
"in",
"February",
"1988",
".",
"European",
"Investment",
"Bank",
"(",
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")",
"--",
"200",
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"lire",
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"12",
"%",
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"16",
",",
"1995",
",",
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"at",
"101",
"3/4",
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"%",
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",",
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"manager",
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"Commercial",
"Italiana",
".",
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"1",
"3/4",
".",
"IBM",
"International",
"Finance",
"(",
"U.S.",
"parent",
")",
"--",
"125",
"million",
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"9",
"1/8",
"%",
"bonds",
"due",
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"10",
",",
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",",
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"9.13",
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",",
"via",
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"Paribas",
"Capital",
"Markets",
".",
"Societe",
"Generale",
"Australia",
"Ltd",
".",
"(",
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"parent",
")",
"--",
"50",
"million",
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"%",
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"20",
",",
"1991",
",",
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",",
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".",
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"Generale",
".",
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"1",
"1/4",
".",
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"&",
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".",
"(",
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")",
"--",
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"placed",
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"notes",
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"31",
",",
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",",
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",",
"via",
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".",
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"31",
",",
"1992",
",",
"at",
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"107",
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",",
"1992",
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",",
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",",
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",",
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",",
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",",
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"scheduled",
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",",
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",",
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",",
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",",
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"Girozentrale",
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".",
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",",
"1992",
",",
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"31",
",",
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",",
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",",
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",",
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",",
"1995",
",",
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"Oct.",
"25",
".",
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"Airlines",
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"(",
"Sweden",
")",
"--",
"100",
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"6",
"1/8",
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"24",
",",
"1999",
",",
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",",
"Calif.",
",",
"was",
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"company",
".",
"Mr.",
"Ely",
",",
"57",
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",",
"temporarily",
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".",
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",",
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"wo",
"n't",
"seek",
"re-election",
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[
"The",
"government",
"issues",
"its",
"first",
"reading",
"on",
"third-quarter",
"real",
"gross",
"national",
"product",
"this",
"week",
"in",
"a",
"report",
"that",
"is",
"expected",
"to",
"disclose",
"much",
"tamer",
"inflation",
".",
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"consensus",
"view",
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"real",
"GNP",
",",
"the",
"total",
"value",
"of",
"the",
"nation",
"'s",
"output",
"of",
"goods",
"and",
"services",
"adjusted",
"for",
"inflation",
",",
"calls",
"for",
"a",
"2.3",
"%",
"gain",
",",
"down",
"from",
"the",
"second",
"quarter",
"'s",
"2.5",
"%",
",",
"according",
"to",
"MMS",
"International",
",",
"a",
"unit",
"of",
"McGraw-Hill",
"Inc.",
",",
"New",
"York",
".",
"But",
"inflation",
",",
"as",
"measured",
"by",
"the",
"GNP",
"deflator",
"in",
"Thursday",
"'s",
"report",
",",
"is",
"expected",
"to",
"rise",
"only",
"3.5",
"%",
",",
"down",
"from",
"4.6",
"%",
"in",
"the",
"second",
"quarter",
".",
"``",
"Inflation",
"could",
"be",
"a",
"real",
"surprise",
",",
"''",
"said",
"Samuel",
"D.",
"Kahan",
",",
"chief",
"financial",
"economist",
"at",
"Kleinwort",
"Benson",
"Government",
"Securities",
"Inc.",
",",
"in",
"Chicago",
".",
"``",
"If",
"that",
"gets",
"people",
"excited",
",",
"it",
"could",
"serve",
"as",
"an",
"impetus",
"to",
"the",
"fixed-income",
"markets",
"to",
"lower",
"their",
"rates",
",",
"''",
"he",
"added",
".",
"The",
"week",
"'s",
"other",
"notable",
"indicators",
"include",
"mid-October",
"auto",
"sales",
",",
"September",
"durable",
"goods",
"orders",
"as",
"well",
"as",
"September",
"personal",
"income",
",",
"personal",
"consumption",
"and",
"the",
"saving",
"rate",
".",
"Most",
"are",
"expected",
"to",
"fall",
"below",
"previous-month",
"levels",
".",
"Many",
"economists",
"see",
"even",
"slower",
"GNP",
"growth",
"for",
"the",
"remainder",
"of",
"the",
"year",
",",
"with",
"some",
"leaning",
"more",
"strongly",
"toward",
"a",
"possible",
"recession",
".",
"In",
"addition",
"to",
"softer",
"production",
"data",
",",
"weaker",
"housing",
"starts",
"and",
"lower",
"corporate",
"profits",
"currently",
"in",
"evidence",
",",
"some",
"analysts",
"believe",
"the",
"two",
"recent",
"natural",
"disasters",
"--",
"Hurricane",
"Hugo",
"and",
"the",
"San",
"Francisco",
"earthquake",
"--",
"will",
"carry",
"economic",
"ramifications",
"in",
"the",
"fourth",
"quarter",
".",
"The",
"recent",
"one-day",
",",
"190-point",
"drop",
"in",
"the",
"Dow",
"Jones",
"Industrial",
"Average",
"seems",
"to",
"be",
"significant",
"to",
"economists",
"mainly",
"for",
"its",
"tacit",
"comment",
"on",
"the",
"poor",
"quality",
"of",
"third-quarter",
"profits",
"now",
"being",
"reported",
".",
"``",
"The",
"stock",
"market",
"is",
"sick",
"because",
"profits",
"are",
"crumbling",
",",
"''",
"says",
"Michael",
"K.",
"Evans",
",",
"president",
"of",
"Evans",
"Economics",
"Inc.",
",",
"Washington",
".",
"The",
"economy",
",",
"he",
"noted",
",",
"moves",
"the",
"market",
",",
"not",
"vice",
"versa",
".",
"On",
"the",
"other",
"hand",
",",
"Mr.",
"Evans",
"expects",
"the",
"hurricane",
"and",
"the",
"earthquake",
"``",
"to",
"take",
"a",
"hunk",
"out",
"of",
"fourth-quarter",
"GNP",
".",
"''",
"His",
"estimate",
"of",
"3.3",
"%",
"for",
"third-quarter",
"GNP",
"is",
"higher",
"than",
"the",
"consensus",
"largely",
"because",
"he",
"believes",
"current",
"inventories",
"are",
"n't",
"as",
"low",
"as",
"official",
"figures",
"indicate",
".",
"Demand",
",",
"he",
"believes",
",",
"is",
"being",
"met",
"from",
"overhang",
"rather",
"than",
"new",
"production",
".",
"By",
"and",
"large",
",",
"economists",
"believe",
"the",
"two",
"natural",
"catastrophes",
"will",
"limit",
"economic",
"damage",
"to",
"their",
"regions",
".",
"Edward",
"J.",
"Campbell",
",",
"economist",
"at",
"Brown",
"Brothers",
"Harriman",
"&",
"Co.",
",",
"New",
"York",
",",
"noted",
"that",
"large",
"increases",
"in",
"construction",
"activity",
"along",
"with",
"government",
"and",
"private",
"relief",
"efforts",
"could",
"offset",
"loss",
"of",
"production",
"in",
"those",
"areas",
".",
"Gary",
"Ciminero",
",",
"economist",
"at",
"Fleet/Norstar",
"Financial",
"Group",
",",
"Providence",
",",
"R.I.",
",",
"expects",
"the",
"deflator",
"to",
"rise",
"3.7",
"%",
",",
"well",
"below",
"the",
"second",
"quarter",
"'s",
"4.6",
"%",
",",
"partly",
"because",
"of",
"what",
"he",
"believes",
"will",
"be",
"temporarily",
"better",
"price",
"behavior",
".",
"He",
"expects",
"real",
"GNP",
"growth",
"of",
"only",
"2.1",
"%",
"for",
"the",
"quarter",
",",
"noting",
"a",
"wider",
"trade",
"deficit",
",",
"slower",
"capital",
"and",
"government",
"spending",
"and",
"the",
"lower",
"inventory",
"figures",
".",
"Sung",
"Won",
"Sohn",
",",
"chief",
"economist",
"at",
"Norwest",
"Corp.",
",",
"Minneapolis",
",",
"holds",
"that",
"the",
"recent",
"stock-market",
"volatility",
"``",
"increases",
"the",
"possibility",
"of",
"economic",
"recession",
"and",
"reinforces",
"the",
"bad",
"news",
"''",
"from",
"recent",
"trade",
"deficit",
",",
"employment",
"and",
"housing",
"reports",
".",
"The",
"consensus",
"calls",
"for",
"a",
"0.5",
"%",
"increase",
"in",
"September",
"personal",
"income",
"and",
"a",
"0.3",
"%",
"gain",
"in",
"consumption",
".",
"In",
"August",
",",
"personal",
"income",
"rose",
"0.4",
"%",
"and",
"personal",
"consumption",
"increased",
"0.9",
"%",
".",
"Charles",
"Lieberman",
",",
"managing",
"director",
"of",
"financial",
"markets",
"reasearch",
"at",
"Manufacturers",
"Hanover",
"Securities",
"Corp.",
",",
"New",
"York",
",",
"said",
"Hurrican",
"Hugo",
"shaved",
"0.1",
"%",
"to",
"0.2",
"%",
"from",
"personal-income",
"growth",
",",
"because",
"of",
"greatly",
"diminished",
"rental",
"income",
"from",
"tourism",
".",
"Durable",
"goods",
"orders",
"for",
"September",
",",
"due",
"out",
"tomorrow",
",",
"are",
"expected",
"to",
"show",
"a",
"slip",
"of",
"1",
"%",
",",
"compared",
"with",
"August",
"'s",
"3.9",
"%",
"increase",
".",
"As",
"usual",
",",
"estimates",
"on",
"the",
"fickle",
"report",
"are",
"wide",
",",
"running",
"from",
"a",
"drop",
"of",
"3.5",
"%",
"to",
"a",
"gain",
"of",
"1.6",
"%",
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[
"Big",
"gains",
"for",
"the",
"ultra-right",
"Republicans",
"party",
"in",
"Baden-Wuerttemburg",
"state",
"municipal",
"elections",
"Sunday",
"showed",
"eroding",
"support",
"for",
"Chancellor",
"Helmut",
"Kohl",
"in",
"a",
"traditional",
"bastion",
"for",
"his",
"Christian",
"Democratic",
"Union",
".",
"With",
"ballots",
"from",
"most",
"of",
"the",
"state",
"'s",
"major",
"cities",
"in",
"by",
"yesterday",
"morning",
",",
"the",
"Republicans",
"came",
"away",
"with",
"10",
"%",
"of",
"the",
"vote",
"in",
"several",
"of",
"the",
"key",
"districts",
".",
"With",
"many",
"rural",
"districts",
"yet",
"to",
"report",
"ballots",
",",
"election",
"officials",
"estimate",
"support",
"for",
"Christian",
"Democrats",
"fell",
"an",
"average",
"five",
"percentage",
"points",
"statewide",
".",
"The",
"left-of-center",
"Social",
"Democrats",
"and",
"the",
"environmental",
"Greens",
"party",
"posted",
"mixed",
"results",
".",
"Headed",
"by",
"a",
"former",
"Waffen",
"SS",
"sergeant",
"and",
"working",
"from",
"a",
"nationalistic",
"platform",
"of",
"anti-foreigner",
"rhetoric",
",",
"the",
"fledgling",
"Republicans",
"party",
"has",
"scored",
"surprising",
"gains",
"in",
"earlier",
"elections",
"in",
"the",
"states",
"of",
"West",
"Berlin",
",",
"Hesse",
"and",
"North-Rhine",
"Westphalia",
".",
"With",
"West",
"German",
"unemployment",
"remaining",
"high",
"at",
"two",
"million",
"jobless",
"and",
"the",
"lack",
"of",
"affordable",
"housing",
"becoming",
"a",
"primary",
"issue",
"for",
"next",
"year",
"'s",
"campaign",
",",
"the",
"Republicans",
"are",
"seen",
"drawing",
"support",
"for",
"their",
"``",
"Germans",
"First",
"''",
"stand",
"on",
"social-welfare",
"issues",
".",
"Election",
"analysts",
"acknowledge",
"that",
"a",
"``",
"Red-Green",
"''",
"coalition",
"of",
"Social",
"Democrats",
"and",
"Greens",
"could",
"edge",
"out",
"Chancellor",
"Kohl",
"'s",
"coalition",
"in",
"the",
"December",
"1990",
"national",
"election",
"if",
"support",
"for",
"the",
"Republicans",
"continues",
"to",
"spread",
".",
"International",
"investigators",
"urged",
"Britain",
"to",
"allow",
"prosecution",
"of",
"suspected",
"Nazi",
"war",
"criminals",
"who",
"took",
"refuge",
"there",
"after",
"1945",
".",
"Under",
"current",
"law",
",",
"such",
"suspects",
"are",
"immune",
"from",
"prosecution",
"for",
"acts",
"committed",
"while",
"not",
"British",
"citizens",
".",
"``",
"If",
"we",
"'re",
"not",
"careful",
"we",
"could",
"become",
"known",
"as",
"a",
"haven",
"for",
"war",
"criminals",
",",
"''",
"said",
"Jeff",
"Rooker",
",",
"a",
"member",
"of",
"Parliament",
"and",
"one",
"of",
"several",
"British",
"politicians",
"attending",
"a",
"London",
"conference",
"with",
"government",
"investigators",
"from",
"the",
"U.S.",
",",
"Canada",
"and",
"Australia",
".",
"A",
"parliamentary",
"inquiry",
"found",
"in",
"July",
"that",
"more",
"than",
"70",
"people",
"living",
"in",
"Britain",
"could",
"have",
"been",
"part",
"of",
"death",
"squads",
"that",
"roamed",
"Nazi-occupied",
"Eastern",
"Europe",
".",
"Parliament",
"is",
"expected",
"to",
"discuss",
"next",
"month",
"whether",
"to",
"change",
"the",
"law",
".",
"British",
"investigations",
"were",
"prompted",
"by",
"a",
"list",
"of",
"17",
"alleged",
"war",
"criminals",
"living",
"in",
"Britain",
"sent",
"to",
"Prime",
"Minister",
"Margaret",
"Thatcher",
"in",
"October",
"1986",
"by",
"the",
"Simon",
"Wiesenthal",
"Center",
"in",
"Los",
"Angeles",
".",
"In",
"a",
"sign",
"of",
"easing",
"tension",
"between",
"Beijing",
"and",
"Hong",
"Kong",
",",
"China",
"said",
"it",
"will",
"again",
"take",
"back",
"illegal",
"immigrants",
"caught",
"crossing",
"into",
"the",
"British",
"colony",
".",
"China",
"had",
"refused",
"to",
"repatriate",
"citizens",
"who",
"sneaked",
"into",
"Hong",
"Kong",
"illegally",
"since",
"early",
"this",
"month",
",",
"when",
"the",
"colony",
"allowed",
"a",
"dissident",
"Chinese",
"swimmer",
"to",
"flee",
"to",
"the",
"U.S.",
".",
"About",
"1,100",
"Chinese",
"were",
"awaiting",
"repatriation",
"yesterday",
".",
"Italy",
"'s",
"Foreign",
"Ministry",
"said",
"it",
"is",
"investigating",
"exports",
"to",
"the",
"Soviet",
"Union",
"by",
"an",
"Ing",
".",
"C.",
"Olivetti",
"&",
"Co.",
"subsidiary",
"called",
"OCN-PPL",
"that",
"makes",
"numerically",
"controlled",
"machine",
"tools",
".",
"Although",
"Italy",
"'s",
"investigation",
"of",
"whether",
"Olivetti",
"had",
"violated",
"Western",
"export-control",
"rules",
"had",
"previously",
"been",
"made",
"known",
",",
"this",
"marked",
"the",
"first",
"time",
"the",
"unit",
"and",
"product",
"were",
"named",
".",
"The",
"U.S.",
"is",
"worried",
"about",
"the",
"convertibility",
"of",
"Olivetti",
"'s",
"machine",
"tools",
"to",
"military",
"use",
".",
"However",
",",
"an",
"Olivetti",
"spokeswoman",
"said",
"OCN-PPL",
",",
"of",
"which",
"Olivetti",
"sold",
"the",
"majority",
"interest",
"last",
"year",
",",
"``",
"does",
"n't",
"make",
"equipment",
"that",
"has",
"the",
"type",
"of",
"precision",
"necessary",
"for",
"sophisticated",
"productions",
".",
"''",
"Conservationists",
"say",
"that",
"drift-net",
"fishing",
"threatens",
"to",
"wipe",
"out",
"much",
"of",
"the",
"world",
"'s",
"tuna",
"stocks",
"in",
"a",
"few",
"years",
".",
"But",
"the",
"Japanese",
"Fisheries",
"Association",
"criticized",
"moves",
"to",
"ban",
"the",
"practice",
"in",
"international",
"waters",
".",
"``",
"It",
"is",
"really",
"unfortunate",
"for",
"human",
"beings",
"to",
"be",
"swayed",
"by",
"emotional",
"discussions",
",",
"''",
"the",
"association",
"said",
".",
"In",
"driftnet",
",",
"or",
"``",
"wall",
"of",
"death",
",",
"''",
"fishing",
",",
"fleets",
"lay",
"nets",
"up",
"to",
"three",
"miles",
"long",
"that",
"trap",
"almost",
"everything",
"in",
"their",
"path",
".",
"Earlier",
"this",
"year",
",",
"Japan",
"said",
"it",
"would",
"cut",
"the",
"number",
"of",
"its",
"drift-net",
"vessels",
"in",
"the",
"South",
"Pacific",
"by",
"two-thirds",
",",
"or",
"down",
"to",
"20",
".",
"Workers",
"at",
"Peugeot",
"S.A.",
"'s",
"car",
"plant",
"at",
"Sochaux",
",",
"in",
"eastern",
"France",
",",
"voted",
"to",
"end",
"a",
"six-week-old",
"strike",
"that",
"has",
"cost",
"the",
"Peugeot",
"group",
"production",
"of",
"60,000",
"automobiles",
",",
"a",
"company",
"spokesman",
"said",
".",
"The",
"strikers",
"voted",
"to",
"accept",
"a",
"series",
"of",
"management",
"proposals",
"that",
"will",
"give",
"them",
"a",
"higher",
"basic",
"wage",
",",
"better",
"profit-sharing",
"benefits",
"and",
"bigger",
"annual",
"bonuses",
".",
"The",
"spokesman",
"said",
"the",
"vote",
"at",
"Sochaux",
"is",
"expected",
"to",
"be",
"followed",
"by",
"a",
"similar",
"move",
"at",
"the",
"company",
"'s",
"assembly",
"plant",
"at",
"Mulhouse",
",",
"where",
"the",
"number",
"of",
"strikers",
"has",
"been",
"whittled",
"down",
"to",
"80",
".",
"About",
"8,000",
"National",
"Union",
"of",
"Mineworkers",
"members",
"resumed",
"their",
"strike",
"against",
"De",
"Beers",
"Consolidated",
"Mines",
"Ltd.",
"after",
"further",
"negotiations",
"to",
"settle",
"a",
"wage",
"dispute",
"broke",
"down",
".",
"Striking",
"workers",
",",
"who",
"began",
"striking",
"five",
"diamond",
"mines",
"on",
"Oct.",
"13",
",",
"had",
"returned",
"to",
"work",
"last",
"week",
"when",
"the",
"union",
"and",
"De",
"Beers",
"arranged",
"to",
"reopen",
"negotiations",
".",
"A",
"De",
"Beers",
"spokesman",
"said",
"yesterday",
"the",
"company",
"had",
"offered",
"to",
"increase",
"the",
"minimum",
"wage",
"by",
"18",
"%",
",",
"while",
"the",
"union",
"was",
"demanding",
"26.6",
"%",
".",
"Before",
"the",
"two",
"parties",
"resumed",
"talks",
"last",
"week",
",",
"De",
"Beers",
"offered",
"17",
"%",
"and",
"the",
"union",
"wanted",
"37.6",
"%",
".",
"China",
"'s",
"People",
"'s",
"Daily",
"took",
"note",
"of",
"the",
"growing",
"problem",
"of",
"computer",
"fraud",
".",
"Since",
"the",
"first",
"fraud",
"was",
"discovered",
"in",
"July",
"1986",
"at",
"an",
"office",
"of",
"the",
"People",
"'s",
"Bank",
"of",
"China",
"in",
"Shenzhen",
",",
"15",
"major",
"cases",
"have",
"been",
"found",
",",
"the",
"paper",
"said",
";",
"the",
"biggest",
"was",
"the",
"theft",
"of",
"$",
"235,000",
"from",
"a",
"bank",
"in",
"Chengdu",
"in",
"March",
"1988",
".",
"The",
"number",
"of",
"computers",
"has",
"mushroomed",
"in",
"recent",
"years",
",",
"with",
"10,000",
"in",
"use",
",",
"as",
"well",
"as",
"30,000",
"miniature",
"models",
".",
"But",
"security",
"systems",
",",
"effective",
"management",
"controls",
"and",
"regulations",
"to",
"govern",
"their",
"use",
"have",
"not",
"kept",
"pace",
",",
"the",
"People",
"'s",
"Daily",
"said",
".",
"Besides",
"money",
",",
"criminals",
"have",
"also",
"used",
"computers",
"to",
"steal",
"secrets",
"and",
"intelligence",
",",
"the",
"newspaper",
"said",
",",
"but",
"it",
"gave",
"no",
"more",
"details",
".",
"Japanese",
"tourists",
"will",
"be",
"told",
"to",
"take",
"care",
"when",
"photographing",
"earthquake",
"damage",
"in",
"San",
"Francisco",
",",
"the",
"Japan",
"Association",
"of",
"Travel",
"Agents",
"said",
".",
"The",
"association",
"issued",
"an",
"advisory",
"to",
"its",
"1,685",
"member",
"agencies",
"following",
"a",
"report",
"from",
"the",
"Foreign",
"Ministry",
"that",
"picture-taking",
"by",
"Japanese",
"tourists",
"in",
"earthquake-stricken",
"areas",
"was",
"causing",
"ill",
"feeling",
"among",
"local",
"residents",
"...",
".",
"Tass",
"said",
"Lenin",
"'s",
"tomb",
"in",
"Red",
"Square",
"will",
"be",
"closed",
"from",
"Nov.",
"10",
"to",
"Jan.",
"15",
"for",
"essential",
"maintenance",
".",
"The",
"red",
"granite",
"mausoleum",
"draws",
"thousands",
"of",
"visitors",
"daily",
"."
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",",
"last",
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[
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"Capital",
"Inc.",
"said",
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"proration",
"factor",
"was",
"0.628394",
"on",
"its",
"oversubscribed",
",",
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"3-a-share",
"tender",
"offer",
"to",
"buy",
"back",
"as",
"many",
"as",
"1.1",
"million",
"of",
"its",
"common",
"shares",
".",
"Payment",
"will",
"begin",
"``",
"as",
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"as",
"Oct.",
"25",
",",
"''",
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"said",
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"developer",
"and",
"manager",
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"limited",
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".",
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"agreement",
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",",
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",",
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"."
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"materials",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"calling",
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".",
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"would",
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"23",
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"a",
"year",
",",
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"flexibility",
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"capital",
",",
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"said",
".",
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"partnerships",
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"partnerships",
"have",
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"said",
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"2",
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"a",
"year",
"in",
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"costs",
"from",
"the",
"change",
".",
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"the",
"plan",
",",
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"common",
"units",
"will",
"receive",
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"share",
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"common",
"stock",
"in",
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"Resources",
"Corp.",
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"every",
"14.97",
"common",
"units",
"owned",
".",
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"$",
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"will",
"receive",
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"new",
"common",
"share",
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"they",
"own",
".",
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"transaction",
",",
"current",
"common",
"unitholders",
"will",
"own",
"about",
"21.3",
"%",
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",",
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"preferred",
"holders",
"will",
"own",
"72.3",
"%",
",",
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"current",
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"will",
"own",
"about",
"6.4",
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",",
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"the",
"same",
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"as",
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".",
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"currently",
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"own",
"about",
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"transaction",
",",
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",",
"an",
"Amarillo",
",",
"Texas",
",",
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"managed",
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"Pickens",
"Jr.",
",",
"a",
"seat",
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"board",
".",
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"$",
"2.60",
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".",
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"record",
"on",
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"23",
",",
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"other",
"conditions",
".",
"NRM",
"said",
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"expects",
"unitholders",
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"on",
"the",
"restructuring",
"at",
"a",
"meeting",
"Dec.",
"15",
"."
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[
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".",
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".",
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",",
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":",
"Intermec",
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[
"Business",
"and",
"civic",
"operations",
"lurched",
"back",
"toward",
"normalcy",
"here",
"as",
"congressional",
"officials",
"estimated",
"that",
"the",
"price",
"tag",
"for",
"emergency",
"assistance",
"to",
"earthquake-ravaged",
"California",
"would",
"total",
"at",
"least",
"$",
"2.5",
"billion",
".",
"``",
"That",
"is",
"a",
"minimum",
"figure",
",",
"and",
"I",
"underscore",
"minimum",
",",
"''",
"said",
"House",
"Speaker",
"Thomas",
"Foley",
"(",
"D.",
",",
"Wash",
".",
")",
"after",
"conferring",
"with",
"California",
"lawmakers",
".",
"``",
"It",
"'s",
"impossible",
"to",
"put",
"an",
"exact",
"figure",
"on",
"it",
"at",
"this",
"time",
".",
"''",
"The",
"Office",
"of",
"Management",
"and",
"Budget",
"has",
"begun",
"looking",
"into",
"legislation",
"to",
"provide",
"more",
"funds",
"for",
"earthquake",
"repairs",
".",
"And",
"California",
"'s",
"45-member",
"delegation",
"in",
"the",
"House",
"is",
"expected",
"to",
"propose",
"that",
"emergency",
"funds",
"be",
"added",
"to",
"a",
"stop-gap",
"spending",
"bill",
"that",
"the",
"House",
"Appropriations",
"Committee",
"is",
"to",
"consider",
"Monday",
".",
"For",
"the",
"most",
"part",
",",
"major",
"corporations",
"'",
"headquarters",
"and",
"plants",
"were",
"unaffected",
"or",
"only",
"slightly",
"damaged",
"by",
"Tuesday",
"'s",
"earthquake",
",",
"which",
"registered",
"6.9",
"on",
"the",
"Richter",
"scale",
".",
"One",
"of",
"the",
"last",
"big",
"employers",
"in",
"the",
"Silicon",
"Valley",
"to",
"report",
"in",
",",
"Seagate",
"Technology",
",",
"said",
"it",
"expects",
"to",
"be",
"back",
"at",
"full",
"strength",
"Monday",
".",
"The",
"day",
"before",
"the",
"quake",
",",
"Seagate",
"completed",
"three",
"days",
"of",
"emergency",
"training",
"and",
"drills",
".",
"Echoing",
"the",
"response",
"of",
"almost",
"all",
"big",
"corporations",
"in",
"the",
"Bay",
"Area",
",",
"Don",
"Waite",
",",
"Seagate",
"'s",
"chief",
"financial",
"officer",
",",
"said",
",",
"``",
"I",
"would",
"n't",
"expect",
"this",
"to",
"have",
"any",
"significant",
"financial",
"impact",
".",
"''",
"The",
"city",
"'s",
"recovery",
"from",
"the",
"earthquake",
"was",
"uneven",
".",
"Banks",
"indicated",
"they",
"were",
"operating",
"at",
"greater",
"than",
"90",
"%",
"of",
"their",
"usual",
"capacity",
",",
"but",
"a",
"Nob",
"Hill",
"hotel",
"said",
"tourists",
"had",
"fled",
",",
"leaving",
"the",
"previously",
"full",
"hotel",
"with",
"an",
"80",
"%",
"vacancy",
"rate",
".",
"City",
"crews",
"tallied",
"the",
"wreckage",
"to",
"buildings",
",",
"but",
"lacked",
"a",
"clear",
"sense",
"of",
"how",
"gravely",
"transportation",
"arteries",
"were",
"disabled",
".",
"Among",
"the",
"city",
"'s",
"banks",
",",
"Bank",
"of",
"America",
"said",
"all",
"but",
"eight",
"of",
"its",
"850",
"branches",
"were",
"open",
".",
"The",
"closed",
"branches",
",",
"in",
"San",
"Francisco",
",",
"Hayward",
",",
"Santa",
"Clara",
"and",
"Santa",
"Cruz",
",",
"sustained",
"structural",
"damage",
".",
"Power",
"failures",
"kept",
"just",
"seven",
"of",
"its",
"1,500",
"automated-teller",
"machines",
"off-line",
".",
"Securities-trading",
"operations",
"were",
"moved",
"to",
"Bank",
"of",
"America",
"'s",
"Concord",
"office",
",",
"and",
"foreign-exchange",
"trading",
"operations",
"were",
"shifted",
"to",
"Los",
"Angeles",
",",
"the",
"bank",
"said",
".",
"Wells",
"Fargo",
"&",
"Co.",
"said",
"its",
"Emergency",
"Operations",
"Committee",
"--",
"which",
"met",
"all",
"night",
"Tuesday",
"--",
"moved",
"its",
"global-funds",
"transfer",
"system",
"to",
"El",
"Monte",
",",
"Calif.",
",",
"500",
"miles",
"to",
"the",
"south",
".",
"Only",
"five",
"of",
"496",
"branches",
"statewide",
"remain",
"closed",
",",
"while",
"23",
"of",
"600",
"automated-teller",
"machines",
"remained",
"out",
"of",
"order",
".",
"The",
"most",
"extensive",
"damage",
"was",
"in",
"small",
"towns",
"near",
"the",
"quake",
"'s",
"epicenter",
",",
"80",
"miles",
"south",
"of",
"San",
"Francisco",
".",
"Santa",
"Cruz",
"County",
"estimates",
"total",
"damage",
"at",
"nearly",
"$",
"600",
"million",
".",
"Santa",
"Clara",
"County",
"has",
"a",
"running",
"total",
"so",
"far",
"of",
"$",
"504",
"million",
",",
"excluding",
"the",
"hard-hit",
"city",
"of",
"Los",
"Gatos",
".",
"Oakland",
"officials",
"were",
"still",
"uncertain",
"about",
"the",
"magnitude",
"of",
"structural",
"damage",
"late",
"yesterday",
";",
"a",
"section",
"of",
"I-880",
",",
"a",
"twotiered",
"highway",
",",
"collapsed",
"in",
"Oakland",
",",
"causing",
"a",
"majority",
"of",
"the",
"deaths",
"resulting",
"from",
"the",
"quake",
".",
"San",
"Francisco",
"Mayor",
"Art",
"Agnos",
"estimated",
"that",
"damages",
"to",
"the",
"city",
"total",
"$",
"2",
"billion",
".",
"That",
"includes",
"dwellings",
"in",
"the",
"ravaged",
"Marina",
"district",
"that",
"must",
"be",
"demolished",
",",
"peeled",
"business",
"facades",
"south",
"of",
"Market",
"Street",
",",
"and",
"houses",
"in",
"the",
"city",
"'s",
"outer",
"Richmond",
"district",
"that",
"were",
"heaved",
"off",
"their",
"foundations",
".",
"Many",
"streets",
"and",
"sidewalks",
"buckled",
",",
"and",
"subterranean",
"water",
"mains",
"and",
"service",
"connections",
"ruptured",
".",
"The",
"federal",
"funds",
"would",
"go",
"to",
"a",
"range",
"of",
"programs",
",",
"including",
"the",
"Federal",
"Emergency",
"Management",
"Agency",
",",
"highway",
"construction",
"accounts",
"and",
"the",
"Small",
"Business",
"Administration",
",",
"according",
"to",
"Rep.",
"Vic",
"Fazio",
"(",
"D.",
",",
"Calif",
".",
")",
".",
"FEMA",
",",
"which",
"coordinates",
"federal",
"disaster",
"relief",
",",
"is",
"already",
"strapped",
"by",
"the",
"costs",
"of",
"cleaning",
"up",
"after",
"Hurricane",
"Hugo",
",",
"which",
"hit",
"the",
"Carolinas",
"last",
"month",
".",
"It",
"is",
"likely",
"to",
"get",
"as",
"much",
"as",
"$",
"800",
"million",
"initially",
"in",
"additional",
"funds",
",",
"and",
"eventually",
"could",
"get",
"more",
"than",
"$",
"1",
"billion",
",",
"according",
"to",
"Mr.",
"Fazio",
",",
"a",
"member",
"of",
"the",
"House",
"Appropriations",
"Committee",
".",
"White",
"House",
"spokesman",
"Marlin",
"Fitzwater",
"said",
"there",
"is",
"enough",
"money",
"on",
"hand",
"to",
"deal",
"with",
"immediate",
"requirements",
".",
"The",
"Bush",
"administration",
"has",
"at",
"its",
"disposal",
"$",
"273",
"million",
"in",
"funds",
"remaining",
"from",
"the",
"$",
"1.1",
"billion",
"Congress",
"released",
"for",
"the",
"cleanup",
"after",
"Hurricane",
"Hugo",
".",
"``",
"We",
"feel",
"we",
"have",
"the",
"money",
"necessary",
"to",
"handle",
"the",
"immediate",
",",
"short-term",
"requirements",
",",
"''",
"Mr.",
"Fitzwater",
"said",
".",
"He",
"added",
"that",
"the",
"Office",
"of",
"Management",
"and",
"Budget",
",",
"the",
"Transportation",
"Department",
"and",
"other",
"agencies",
"are",
"``",
"developing",
"longer-term",
"legislation",
"''",
"that",
"should",
"be",
"ready",
"soon",
".",
"Much",
"of",
"the",
"cost",
"of",
"cleaning",
"up",
"after",
"the",
"earthquake",
"will",
"involve",
"repairing",
"highways",
"and",
"bridges",
".",
"California",
"lawmakers",
"are",
"seeking",
"changes",
"in",
"rules",
"governing",
"the",
"federal",
"highway",
"relief",
"program",
"so",
"more",
"money",
"can",
"be",
"made",
"available",
"for",
"the",
"state",
".",
"Some",
"things",
"ca",
"n't",
"be",
"repaired",
".",
"The",
"Asian",
"Art",
"Museum",
"in",
"Golden",
"Gate",
"Park",
"reports",
"$",
"10",
"million",
"to",
"$",
"15",
"million",
"in",
"damage",
",",
"including",
"shattered",
"porcelains",
"and",
"stone",
"figures",
".",
"Its",
"neighbor",
",",
"the",
"De",
"Young",
"Museum",
",",
"totaled",
"$",
"3",
"million",
"to",
"$",
"5",
"million",
"in",
"structural",
"damage",
"and",
"shattered",
"sculpture",
".",
"The",
"city",
"'s",
"main",
"library",
"is",
"closed",
"because",
"of",
"fissures",
"that",
"opened",
"in",
"its",
"walls",
",",
"and",
"marble",
"facings",
"and",
"ornamental",
"plaster",
"at",
"the",
"Beaux",
"Arts",
"City",
"Hall",
"broke",
"off",
"in",
"the",
"temblor",
".",
"The",
"ground",
"along",
"the",
"Embarcadero",
"the",
"street",
"that",
"skirts",
"the",
"city",
"'s",
"eastern",
"boundary",
"and",
"piers",
"--",
"dropped",
"six",
"inches",
"after",
"the",
"quake",
",",
"wreaking",
"major",
"damage",
"to",
"at",
"least",
"one",
"of",
"the",
"piers",
".",
"At",
"San",
"Francisco",
"International",
"Airport",
",",
"shock",
"waves",
"wrecked",
"the",
"control",
"tower",
",",
"knocking",
"down",
"computers",
"and",
"shattering",
"glass",
".",
"Offices",
"of",
"the",
"city",
"'s",
"Rent",
"Board",
"were",
"destroyed",
".",
"Mayor",
"Agnos",
"'s",
"$",
"2",
"billion",
"estimate",
"does",
"n't",
"include",
"damage",
"to",
"freeway",
"arteries",
"leading",
"into",
"the",
"city",
",",
"some",
"of",
"which",
"remained",
"closed",
".",
"A",
"major",
"chunk",
"of",
"the",
"$",
"2",
"billion",
"is",
"expected",
"to",
"be",
"eaten",
"up",
"by",
"overtime",
"for",
"city",
"workers",
"deployed",
"in",
"the",
"emergency",
",",
"said",
"a",
"spokesman",
"for",
"Mr.",
"Agnos",
".",
"``",
"All",
"of",
"the",
"city",
"'s",
"$",
"5.9",
"million",
"emergency",
"reserve",
"was",
"spent",
"in",
"the",
"first",
"24",
"hours",
"''",
"on",
"overtime",
"salaries",
",",
"he",
"said",
".",
"Insurers",
"struggled",
"to",
"to",
"get",
"a",
"firm",
"grasp",
"on",
"the",
"volume",
"of",
"claims",
"pouring",
"into",
"their",
"offices",
".",
"At",
"Fireman",
"'s",
"Fund",
"Corp.",
",",
"a",
"spokesman",
"said",
"142",
"claims",
"were",
"received",
"in",
"the",
"first",
"24",
"hours",
"after",
"the",
"quake",
",",
"and",
"the",
"company",
"is",
"braced",
"for",
"as",
"many",
"as",
"5,000",
"claims",
"from",
"its",
"35,000",
"residential",
"and",
"35,000",
"business",
"policyholders",
"in",
"the",
"affected",
"area",
".",
"``",
"Claims",
"range",
"from",
"a",
"scratched",
"fender",
"--",
"and",
"there",
"were",
"an",
"awful",
"lot",
"of",
"cars",
"damaged",
"in",
"this",
"--",
"to",
"a",
"major",
"processing",
"plant",
",",
"''",
"a",
"spokesman",
"said",
".",
"``",
"We",
"'re",
"delivering",
"a",
"check",
"for",
"$",
"750,000",
"to",
"an",
"automotive",
"business",
"in",
"Berkeley",
"that",
"burned",
"on",
"Tuesday",
".",
"''",
"Fireman",
"'s",
"is",
"part",
"of",
"a",
"$",
"38",
"million",
"syndicate",
"that",
"supplies",
"business",
"interruption",
"insurance",
"to",
"the",
"city",
"on",
"the",
"Bay",
"Bridge",
",",
"which",
"must",
"pay",
"employees",
"during",
"the",
"three",
"weeks",
"or",
"more",
"it",
"is",
"expected",
"to",
"be",
"out",
"of",
"service",
"and",
"deprived",
"of",
"toll",
"income",
".",
"California",
"lawmakers",
"want",
"to",
"eliminate",
"temporarily",
"a",
"$",
"100",
"million",
"cap",
"on",
"the",
"amount",
"of",
"federal",
"highway",
"relief",
"for",
"each",
"state",
"for",
"each",
"disaster",
",",
"as",
"well",
"as",
"a",
"prohibition",
"on",
"using",
"the",
"emergency",
"highway",
"aid",
"to",
"repair",
"toll",
"roads",
".",
"In",
"addition",
",",
"under",
"the",
"highway-relief",
"program",
",",
"the",
"federal",
"government",
"provides",
"100",
"%",
"of",
"emergency",
"highway",
"aid",
"for",
"only",
"the",
"first",
"90",
"days",
"of",
"a",
"repair",
"effort",
".",
"After",
"that",
",",
"the",
"federal",
"share",
"diminishes",
".",
"For",
"interstate",
"highways",
",",
"the",
"federal",
"share",
"normally",
"would",
"drop",
"to",
"90",
"%",
"of",
"the",
"cost",
"of",
"repairs",
",",
"and",
"the",
"state",
"would",
"have",
"to",
"pick",
"up",
"the",
"remainder",
"of",
"the",
"cost",
".",
"But",
"lawmakers",
"want",
"to",
"extend",
"the",
"period",
"for",
"100",
"%",
"federal",
"funding",
"for",
"several",
"months",
".",
"Those",
"changes",
"also",
"would",
"apply",
"to",
"two",
"areas",
"hit",
"hard",
"by",
"Hurricane",
"Hugo",
"--",
"South",
"Carolina",
"and",
"the",
"U.S.",
"Virgin",
"Islands",
",",
"according",
"to",
"an",
"aide",
"to",
"Rep.",
"Fazio",
".",
"Meanwhile",
",",
"the",
"FEMA",
"announced",
"a",
"toll-free",
"telephone",
"number",
"(",
"800-462-9029",
")",
"to",
"expedite",
"service",
"to",
"victims",
"of",
"the",
"earthquake",
".",
"Lines",
"will",
"be",
"available",
"24",
"hours",
"a",
"day",
"to",
"take",
"applications",
"for",
"such",
"disaster",
"relief",
"as",
"temporary",
"housing",
"and",
"emergency",
"home",
"repairs",
"by",
"phone",
".",
"Transportation",
"officials",
"are",
"expecting",
"utter",
"traffic",
"pandemonium",
"beginning",
"Monday",
"and",
"growing",
"worse",
"over",
"the",
"next",
"several",
"weeks",
".",
"Some",
"250,000",
"cars",
"normally",
"cross",
"the",
"closed",
"Bay",
"Bridge",
"between",
"Oakland",
"and",
"San",
"Francisco",
"daily",
".",
"Officials",
"say",
"it",
"is",
"clear",
"that",
"alternate",
"routes",
"ca",
"n't",
"handle",
"the",
"overflow",
".",
"The",
"state",
"is",
"calling",
"in",
"a",
"flotilla",
"of",
"navy",
"landing",
"vessels",
"and",
"other",
"boats",
"to",
"expand",
"ferry",
"service",
"across",
"the",
"bay",
"and",
"hopes",
"to",
"add",
"numerous",
"new",
"bus",
"routes",
"and",
"train",
"departures",
"to",
"help",
"alleviate",
"the",
"traffic",
"problem",
".",
"Moreover",
",",
"state",
"officials",
"are",
"urging",
"freight",
"haulers",
"to",
"bypass",
"many",
"of",
"the",
"area",
"'s",
"main",
"highways",
"and",
"to",
"travel",
"late",
"at",
"night",
"or",
"during",
"predawn",
"hours",
".",
"Even",
"so",
",",
"``",
"We",
"'re",
"looking",
"for",
"chaos",
",",
"''",
"said",
"George",
"Gray",
",",
"a",
"deputy",
"district",
"director",
"at",
"the",
"California",
"Department",
"of",
"Transportation",
".",
"``",
"If",
"there",
"'s",
"any",
"way",
"you",
"can",
"do",
"it",
",",
"you",
"ought",
"to",
"go",
"to",
"Idaho",
"and",
"go",
"fishing",
"for",
"a",
"while",
".",
"''",
"Most",
"of",
"San",
"Francisco",
"'s",
"tourists",
"and",
"business",
"travelers",
"already",
"have",
"left",
"--",
"despite",
"hotel",
"'s",
"offers",
"of",
"rate",
"cuts",
".",
"``",
"Everyone",
"left",
",",
"''",
"said",
"Peter",
"Lang",
",",
"reservations",
"manager",
"of",
"the",
"Mark",
"Hopkins",
"Hotel",
".",
"The",
"Westin",
"St.",
"Francis",
"hotel",
",",
"which",
"survived",
"the",
"1906",
"earthquake",
"and",
"fire",
",",
"currently",
"is",
"less",
"than",
"50",
"%",
"occupied",
".",
"``",
"We",
"still",
"have",
"our",
"die-hard",
"baseball",
"fans",
",",
"''",
"a",
"spokesman",
"said",
".",
"``",
"One",
"lady",
"from",
"New",
"York",
"said",
"she",
"'s",
"not",
"going",
"home",
"until",
"the",
"-LCB-",
"World",
"Series",
"-RCB-",
"is",
"over",
".",
"''",
"Gerald",
"F.",
"Seib",
"and",
"Joe",
"Davidson",
"in",
"Washington",
"contributed",
"to",
"this",
"article",
"."
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".",
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",",
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",",
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".",
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",",
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".",
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".",
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"sales",
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",",
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".",
"Honda",
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",",
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",",
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",",
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[
"Western",
"Digital",
"Corp.",
"reported",
"a",
"net",
"loss",
"of",
"$",
"2.7",
"million",
",",
"or",
"nine",
"cents",
"a",
"share",
",",
"for",
"its",
"first",
"quarter",
"ended",
"Sept.",
"30",
",",
"citing",
"factors",
"as",
"varied",
"as",
"hurricane",
"damage",
",",
"an",
"advance",
"in",
"graphics",
"technology",
"and",
"the",
"strengthening",
"dollar",
".",
"In",
"the",
"year-ago",
"period",
",",
"the",
"company",
"earned",
"$",
"12.9",
"million",
",",
"or",
"45",
"cents",
"a",
"share",
",",
"on",
"sales",
"of",
"$",
"247",
"million",
".",
"Sales",
"for",
"the",
"just-ended",
"period",
"fell",
"to",
"about",
"$",
"225",
"million",
",",
"the",
"maker",
"of",
"computer",
"parts",
"said",
".",
"Nonetheless",
",",
"Chairman",
"Roger",
"W.",
"Johnson",
"said",
"he",
"expects",
"the",
"company",
"to",
"be",
"profitable",
"in",
"the",
"current",
"quarter",
".",
"``",
"We",
"are",
"positioned",
"to",
"come",
"through",
",",
"''",
"he",
"said",
",",
"noting",
"that",
"the",
"company",
"'s",
"backlog",
"was",
"up",
"from",
"the",
"previous",
"quarter",
".",
"In",
"its",
"second",
"quarter",
"last",
"year",
",",
"Western",
"Digital",
"earned",
"$",
"12.7",
"million",
",",
"or",
"44",
"cents",
"a",
"share",
",",
"on",
"sales",
"of",
"$",
"258.4",
"million",
".",
"Mr.",
"Johnson",
"said",
"Western",
"Digital",
"'s",
"plant",
"in",
"Puerto",
"Rico",
"was",
"affected",
"by",
"Hurricane",
"Hugo",
",",
"losing",
"three",
"days",
"'",
"production",
"because",
"of",
"the",
"storm",
",",
"which",
"wrecked",
"much",
"of",
"the",
"Caribbean",
"island",
"'s",
"infrastructure",
".",
"Although",
"the",
"plant",
"itself",
"was",
"n't",
"damaged",
",",
"Mr.",
"Johnson",
"said",
"millions",
"of",
"dollars",
"in",
"first-quarter",
"revenue",
"were",
"lost",
".",
"The",
"revenue",
"will",
"be",
"regained",
"in",
"the",
"current",
"period",
",",
"he",
"added",
".",
"There",
"are",
"no",
"plans",
"to",
"initiate",
"a",
"common",
"stock",
"dividend",
",",
"Mr.",
"Johnson",
"said",
",",
"explaining",
"that",
"the",
"board",
"continues",
"to",
"believe",
"shareholders",
"are",
"best",
"served",
"by",
"reinvesting",
"excess",
"cash",
".",
"Mr.",
"Johnson",
"said",
"the",
"first-quarter",
"loss",
"also",
"heavily",
"reflected",
"a",
"rapid",
"change",
"in",
"graphics",
"technology",
"that",
"left",
"reseller",
"channels",
"with",
"too",
"many",
"of",
"the",
"old",
"computer",
"graphics",
"boards",
"and",
"too",
"few",
"new",
"monitors",
"compatible",
"with",
"the",
"new",
"graphics",
"boards",
".",
"Western",
"Digital",
"does",
"n't",
"make",
"the",
"monitors",
".",
"An",
"accelerating",
"move",
"by",
"personal",
"computer",
"manufacturers",
"'",
"to",
"include",
"advanced",
"graphics",
"capabilities",
"as",
"standard",
"equipment",
"further",
"dampened",
"reseller",
"purchases",
"of",
"Western",
"Digital",
"'s",
"equipment",
".",
"``",
"The",
"other",
"areas",
"of",
"the",
"business",
"--",
"storage",
"and",
"microcomputers",
"--",
"were",
"very",
"good",
",",
"''",
"Mr.",
"Johnson",
"said",
".",
"He",
"said",
"Western",
"Digital",
"has",
"reacted",
"swiftly",
"to",
"the",
"movement",
"to",
"video",
"graphics",
"array",
",",
"VGA",
",",
"graphics",
"technology",
"from",
"the",
"old",
"enhanced",
"graphics",
"adapter",
",",
"EGA",
",",
"which",
"has",
"a",
"lower",
"resolution",
"standard",
",",
"technology",
"and",
"now",
"is",
"one",
"of",
"the",
"leading",
"producers",
"of",
"these",
"newer",
"units",
".",
"Other",
"makers",
"of",
"video",
"controller",
"equipment",
"also",
"were",
"caught",
"in",
"the",
"EGA-VGA",
"shift",
",",
"he",
"said",
",",
"``",
"but",
"we",
"were",
"able",
"to",
"respond",
"much",
"more",
"quickly",
".",
"''",
"Still",
",",
"Mr.",
"Johnson",
"said",
",",
"``",
"our",
"stock",
"is",
"grossly",
"undervalued",
".",
"''",
"He",
"said",
"the",
"company",
"has",
"cut",
"operating",
"expenses",
"by",
"about",
"10",
"%",
"over",
"the",
"last",
"few",
"quarters",
",",
"while",
"maintaining",
"research",
"and",
"development",
"at",
"about",
"8",
"%",
"to",
"9",
"%",
"of",
"sales",
".",
"As",
"part",
"of",
"its",
"reorganization",
"this",
"week",
",",
"Western",
"Digital",
"has",
"divided",
"its",
"business",
"into",
"two",
"segments",
"--",
"storage",
"products",
",",
"including",
"controllers",
"and",
"disk",
"drives",
";",
"and",
"microcomputer",
"products",
",",
"which",
"include",
"graphics",
",",
"communications",
"and",
"peripheral",
"control",
"chips",
".",
"Graphics",
",",
"communications",
"and",
"peripheral",
"control",
"chips",
"were",
"combined",
"because",
",",
"increasingly",
",",
"multiple",
"functions",
"are",
"being",
"governed",
"by",
"a",
"single",
"chip",
".",
"Storage",
",",
"which",
"includes",
"computer",
"controllers",
"and",
"3.5-inch",
"disk",
"drives",
",",
"represents",
"nearly",
"two-thirds",
"of",
"the",
"company",
"'s",
"business",
".",
"Disk",
"drives",
",",
"which",
"allow",
"a",
"computer",
"to",
"access",
"its",
"memory",
",",
"generated",
"38",
"%",
"more",
"revenue",
"in",
"the",
"most",
"recent",
"period",
"compared",
"with",
"the",
"fiscal",
"first",
"quarter",
"a",
"year",
"earlier",
".",
"Computer",
"parts",
"are",
"getting",
"ever",
"smaller",
",",
"Mr.",
"Johnson",
"said",
",",
"a",
"shrinking",
"that",
"has",
"propelled",
"laptops",
"into",
"position",
"as",
"the",
"fastest-growing",
"segment",
"of",
"the",
"computer",
"business",
".",
"As",
"smaller",
"and",
"more",
"powerful",
"computers",
"continue",
"to",
"be",
"the",
"focus",
"of",
"the",
"industry",
",",
"he",
"said",
",",
"Western",
"Digital",
"is",
"strengthening",
"development",
"of",
"laptop",
"parts",
".",
"Next",
"year",
"Western",
"Digital",
"plans",
"to",
"consolidate",
"its",
"operations",
"from",
"11",
"buildings",
"in",
"Irvine",
"into",
"two",
"buildings",
"in",
"the",
"same",
"city",
"a",
"new",
"headquarters",
"and",
",",
"a",
"block",
"away",
",",
"a",
"modern",
"$",
"100",
"million",
"silicon",
"wafer",
"fabrication",
"plant",
".",
"The",
"plan",
"will",
"help",
"the",
"company",
"in",
"its",
"existing",
"joint",
"manufacturing",
"agreement",
"with",
"AT&T",
".",
"About",
"half",
"of",
"Western",
"Digital",
"'s",
"business",
"is",
"overseas",
",",
"and",
"Mr.",
"Johnson",
"expects",
"that",
"proportion",
"to",
"continue",
".",
"Plans",
"to",
"dissolve",
"many",
"of",
"the",
"trade",
"barriers",
"within",
"Europe",
"in",
"1992",
"creates",
"significant",
"opportunities",
"for",
"the",
"company",
",",
"he",
"said",
",",
"particularly",
"since",
"Western",
"Digital",
"already",
"manufactures",
"there",
".",
"Capitalizing",
"on",
"that",
"presence",
",",
"Western",
"Digital",
"is",
"launching",
"a",
"major",
"effort",
"to",
"develop",
"the",
"embryonic",
"reseller",
"market",
"in",
"Europe",
"."
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[
"Tuesday",
"'s",
"earthquake",
"will",
"depress",
"local",
"real-estate",
"values",
"in",
"the",
"short",
"term",
"and",
"force",
"companies",
"to",
"reconsider",
"expanding",
"in",
"or",
"relocating",
"to",
"the",
"Bay",
"Area",
"and",
"California",
",",
"real-estate",
"and",
"relocation",
"specialists",
"said",
".",
"Few",
"specialists",
"said",
"they",
"expect",
"the",
"quake",
"to",
"have",
"much",
"of",
"an",
"effect",
"on",
"most",
"California",
"property",
"values",
".",
"But",
"real-estate",
"experts",
"and",
"brokers",
"said",
"the",
"quake",
"undoubtedly",
"will",
"drag",
"down",
"prices",
"in",
"neighborhoods",
"built",
"on",
"less",
"stable",
"ground",
",",
"especially",
"in",
"the",
"Bay",
"Area",
".",
"``",
"California",
"prices",
"were",
"already",
"coming",
"down",
".",
"This",
"is",
"n't",
"going",
"to",
"help",
",",
"''",
"said",
"Kenneth",
"T.",
"Rosen",
",",
"chairman",
"of",
"the",
"Center",
"for",
"Real",
"Estate",
"and",
"Urban",
"Economics",
"at",
"the",
"University",
"of",
"California",
"at",
"Berkeley",
".",
"State",
"housing",
"prices",
",",
"at",
"a",
"median",
"$",
"201,028",
",",
"have",
"declined",
"in",
"recent",
"months",
"because",
"of",
"potential",
"buyers",
"'",
"inability",
"to",
"afford",
"homes",
".",
"Mr.",
"Rosen",
",",
"among",
"others",
",",
"suggested",
"that",
"the",
"quake",
",",
"the",
"strongest",
"since",
"the",
"1906",
"temblor",
"that",
"struck",
"San",
"Francisco",
",",
"will",
"in",
"the",
"short",
"term",
"create",
"a",
"two-tier",
"price",
"system",
"for",
"quake-prone",
"communities",
",",
"with",
"dwellings",
"built",
"on",
"sturdy",
"ground",
"likely",
"to",
"demand",
"higher",
"prices",
".",
"One",
"San",
"Francisco",
"neighborhood",
"likely",
"to",
"test",
"Mr.",
"Rosen",
"'s",
"theory",
"soon",
"is",
"the",
"city",
"'s",
"fashionable",
"Marina",
"district",
",",
"which",
"boasts",
"some",
"of",
"the",
"highest",
"home",
"prices",
"in",
"the",
"state",
".",
"The",
"district",
",",
"built",
"on",
"landfill",
",",
"suffered",
"heavy",
"quake",
"damage",
",",
"including",
"collapsed",
"buildings",
".",
"Yesterday",
",",
"the",
"city",
"demolished",
"two",
"dwellings",
"in",
"the",
"district",
"because",
"of",
"severe",
"structural",
"damage",
"and",
"said",
"as",
"many",
"as",
"19",
"of",
"the",
"district",
"'s",
"350",
"dwellings",
"might",
"have",
"to",
"be",
"razed",
".",
"Brokers",
"agreed",
"with",
"the",
"two-tier",
"price",
"theory",
".",
"``",
"My",
"gut",
"feeling",
"is",
"that",
"the",
"Marina",
"properties",
"will",
"be",
"affected",
",",
"''",
"said",
"Grace",
"Perkins",
",",
"senior",
"vice",
"president",
"at",
"Grubb",
"&",
"Ellis",
"Residential",
"Brokerage",
"Inc",
".",
"Neither",
"she",
"nor",
"other",
"real-estate",
"executives",
"and",
"brokers",
"could",
"project",
"how",
"much",
"less",
"Marina",
"properties",
"might",
"bring",
",",
"but",
"she",
"said",
"the",
"two-tier",
"price",
"structure",
"would",
"affect",
"prices",
"``",
"for",
"a",
"while",
".",
"''",
"Mr.",
"Rosen",
"said",
"the",
"quake",
"will",
"revive",
"consumer",
"interest",
"in",
"a",
"little-publicized",
"1972",
"state",
"law",
"that",
"requires",
"brokers",
"to",
"disclose",
"to",
"potential",
"buyers",
"how",
"close",
"a",
"property",
"sits",
"to",
"a",
"fault",
"line",
".",
"Because",
"of",
"the",
"size",
"of",
"the",
"California",
"market",
",",
"few",
"relocation",
"specialists",
"expect",
"a",
"widespread",
"corporate",
"flight",
"in",
"the",
"quake",
"'s",
"aftermath",
".",
"But",
"they",
"said",
"the",
"quake",
"will",
"force",
"some",
"companies",
"to",
"relocate",
"or",
"expand",
"part",
"or",
"all",
"of",
"their",
"operations",
"outside",
"the",
"state",
".",
"``",
"What",
"you",
"'re",
"going",
"to",
"get",
"is",
"`",
"We",
"do",
"n't",
"want",
"to",
"put",
"all",
"of",
"our",
"eggs",
"in",
"one",
"basket",
"'",
"theory",
",",
"''",
"said",
"James",
"H.",
"Renzas",
",",
"president",
"of",
"Location",
"Management",
"Services",
"Inc.",
",",
"a",
"Palo",
"Alto",
",",
"Calif.",
",",
"relocation",
"concern",
".",
"Mr.",
"Renzas",
",",
"among",
"others",
",",
"said",
"the",
"quake",
"will",
"prod",
"companies",
"in",
"certain",
"industries",
",",
"like",
"semiconductors",
",",
"computers",
"and",
"aerospace",
",",
"to",
"consider",
"moving",
"operations",
"that",
"involve",
"particularly",
"sensitive",
"machinery",
"to",
"locations",
"outside",
"California",
".",
"Because",
"of",
"the",
"quake",
"threat",
",",
"``",
"some",
"firms",
"have",
"evaluated",
"what",
"the",
"cost",
"is",
"to",
"shore",
"up",
"their",
"buildings",
"and",
"compared",
"it",
"with",
"the",
"cost",
"of",
"building",
"it",
"elswehere",
",",
"''",
"he",
"said",
".",
"One",
"Southern",
"California",
"aerospace",
"firm",
",",
"for",
"example",
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[
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"?",
"What",
"plunge",
"?",
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"New",
"York",
"Stock",
"Exchange",
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",",
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".",
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".",
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".",
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"Co.",
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".",
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"--",
"93",
"--",
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"100",
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"1984",
".",
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"102",
",",
"down",
"$",
"5.625",
".",
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"lows",
"included",
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"International",
"Corp.",
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"Corp.",
"and",
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",",
"all",
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".",
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".",
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"17",
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"a",
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",",
"closed",
"at",
"$",
"14.125",
",",
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"."
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[
"Kysor",
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"net",
"earnings",
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"four",
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"a",
"share",
",",
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"61",
"cents",
"a",
"share",
"a",
"year",
"ago",
".",
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"projecting",
"that",
"the",
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"earnings",
"would",
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"25",
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"30",
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".",
"The",
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"third-quarter",
"earnings",
"amounted",
"to",
"$",
"4.1",
"million",
".",
"The",
"company",
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"drop",
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"the",
"powerboat",
"industry",
"reduced",
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"two",
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"operations",
".",
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"commercial",
"products",
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"forecasts",
".",
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"commercial",
"refrigeration",
"equipment",
",",
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"levels",
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[
"QUANTUM",
"CHEMICAL",
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",",
"Ill.",
",",
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".",
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"."
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[
"Komatsu",
"Ltd.",
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"machinery",
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".",
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",",
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",",
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"116.7",
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"rose",
"11",
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"263.07",
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"yen",
".",
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"surged",
"31",
"%",
"to",
"7.63",
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"yen",
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"5.82",
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"yen",
".",
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"rose",
"to",
"7.84",
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"6.53",
"yen",
".",
"Brisk",
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"divisions",
".",
"Domestic",
"sales",
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"machinery",
",",
"such",
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"power",
"shovels",
"and",
"bulldozers",
"rose",
"to",
"142.84",
"billion",
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"from",
"126.15",
"billion",
"yen",
".",
"Demand",
"from",
"Europe",
"and",
"Southeast",
"Asia",
"also",
"grew",
",",
"but",
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"31",
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";",
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"yen",
",",
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"28.53",
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"1989",
".",
"Net",
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"to",
"17",
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[
"Nothing",
"stirred",
"the",
"soul",
"of",
"Ronald",
"Reagan",
"and",
"his",
"disciples",
"as",
"much",
"as",
"the",
"crusade",
"to",
"aid",
"Nicaragua",
"'s",
"Contra",
"rebels",
",",
"or",
"the",
"dream",
"of",
"building",
"a",
"space-based",
"defense",
"shield",
"to",
"knock",
"out",
"Soviet",
"nuclear",
"missiles",
".",
"Yet",
"under",
"Mr.",
"Reagan",
"'s",
"preferred",
"successor",
",",
"President",
"Bush",
",",
"those",
"two",
"cherished",
"national-security",
"causes",
"are",
"withering",
"on",
"the",
"vine",
".",
"And",
",",
"surprisingly",
",",
"little",
"more",
"than",
"a",
"whimper",
"of",
"protest",
"is",
"being",
"heard",
",",
"even",
"though",
"Reaganauts",
"once",
"breathed",
"fire",
"supporting",
"the",
"Contras",
"and",
"the",
"Strategic",
"Defense",
"Initiative",
".",
"``",
"The",
"programs",
"have",
"arthritis",
",",
"''",
"says",
"Rep.",
"Henry",
"Hyde",
",",
"a",
"conservative",
"Republican",
"from",
"Illinois",
".",
"Yet",
",",
"he",
"asserts",
",",
"``",
"you",
"look",
"around",
"...",
"and",
"you",
"say",
",",
"`",
"Who",
"are",
"the",
"leaders",
"?",
"Who",
"is",
"going",
"to",
"carry",
"the",
"water",
"?",
"'",
"''",
"It",
"is",
"n't",
"surprising",
"that",
"President",
"Bush",
"has",
"n't",
"led",
"a",
"crusade",
"to",
"pump",
"up",
"the",
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"or",
"SDI",
".",
"Though",
"he",
"nominally",
"supports",
"both",
"programs",
",",
"Mr.",
"Bush",
"has",
"n't",
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"a",
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"champion",
"of",
"either",
"cause",
",",
"as",
"Mr.",
"Reagan",
"was",
".",
"What",
"'s",
"surprising",
"is",
"that",
"there",
"is",
"n't",
"more",
"of",
"a",
"conservative",
"outcry",
"as",
"the",
"Bush",
"administration",
"lets",
"the",
"programs",
"slip",
"down",
"the",
"national-priority",
"list",
".",
"A",
"combination",
"of",
"factors",
"--",
"a",
"weariness",
"among",
"some",
"conservatives",
",",
"a",
"decline",
"in",
"the",
"perception",
"of",
"a",
"Soviet",
"threat",
"and",
"a",
"preoccupation",
"with",
"other",
"issues",
"--",
"seem",
"to",
"explain",
"the",
"strange",
"tranquility",
".",
"Above",
"all",
",",
"though",
",",
"conservative",
"Republicans",
"who",
"have",
"championed",
"both",
"the",
"Contras",
"and",
"SDI",
"are",
"reluctant",
"to",
"attack",
"a",
"Republican",
"president",
"for",
"failing",
"to",
"do",
"more",
"--",
"though",
"that",
"reluctance",
"may",
"be",
"receding",
".",
"``",
"We",
"want",
"to",
"complain",
",",
"we",
"want",
"to",
"say",
"something",
"about",
"it",
",",
"and",
"we",
"'re",
"going",
"to",
"as",
"it",
"gets",
"worse",
",",
"''",
"says",
"Rep.",
"Dan",
"Burton",
",",
"an",
"Indiana",
"Republican",
"who",
"has",
"been",
"a",
"staunch",
"Contra",
"backer",
".",
"``",
"But",
"it",
"'s",
"like",
"kicking",
"your",
"father",
"in",
"the",
"pants",
".",
"You",
"hate",
"to",
"do",
"it",
"because",
"he",
"'s",
"your",
"father",
".",
"''",
"Mr.",
"Burton",
"says",
"conservatives",
"'",
"unhappiness",
"with",
"Mr.",
"Bush",
"'s",
"cautious",
"handling",
"of",
"the",
"recent",
"unsuccessful",
"coup",
"in",
"Panama",
"will",
"make",
"them",
"more",
"willing",
"to",
"speak",
"out",
".",
"Of",
"course",
",",
"neither",
"President",
"Bush",
"nor",
"the",
"Congress",
"has",
"actually",
"abandoned",
"the",
"Contras",
"or",
"SDI",
".",
"Mr.",
"Bush",
"has",
"struck",
"a",
"deal",
"with",
"congressional",
"leaders",
"to",
"provide",
"nonlethal",
"aid",
"to",
"the",
"Contras",
"until",
"Nicaragua",
"holds",
"national",
"elections",
"next",
"February",
".",
"But",
"the",
"administration",
"has",
"dropped",
"any",
"effort",
"to",
"win",
"military",
"aid",
"for",
"the",
"rebels",
".",
"And",
"the",
"administration",
"'s",
"deal",
"with",
"Congress",
"gives",
"several",
"congressional",
"committees",
"the",
"right",
"to",
"cut",
"off",
"even",
"humanitarian",
"aid",
"next",
"month",
",",
"though",
"the",
"committees",
"are",
"likely",
"to",
"let",
"aid",
"continue",
"until",
"February",
".",
"Most",
"analysts",
"think",
"there",
"'s",
"little",
"prospect",
"the",
"Contras",
"can",
"be",
"a",
"significant",
"fighting",
"force",
"without",
"U.S.",
"arms",
",",
"and",
"after",
"the",
"February",
"election",
"their",
"future",
"in",
"any",
"form",
"will",
"be",
"murky",
"at",
"best",
".",
"Instead",
"of",
"focusing",
"on",
"the",
"Contras",
",",
"Mr.",
"Bush",
"has",
"switched",
"to",
"urging",
"members",
"of",
"Congress",
"--",
"most",
"recently",
"in",
"a",
"White",
"House",
"meeting",
"yesterday",
"--",
"to",
"approve",
"financing",
"for",
"the",
"election",
"campaign",
"of",
"political",
"opponents",
"of",
"Nicaragua",
"'s",
"Sandinista",
"government",
".",
"The",
"administration",
"continues",
"to",
"support",
"SDI",
",",
"or",
"Star",
"Wars",
",",
"and",
"it",
"recently",
"lobbied",
"to",
"persuade",
"the",
"Senate",
"to",
"restore",
"some",
"of",
"the",
"funds",
"it",
"planned",
"to",
"cut",
"from",
"the",
"program",
".",
"And",
"just",
"last",
"week",
",",
"Defense",
"Secretary",
"Dick",
"Cheney",
"gave",
"a",
"strong",
"speech",
"listing",
"``",
"compelling",
"reasons",
"''",
"to",
"push",
"ahead",
"with",
"SDI",
"and",
"saying",
"he",
"'d",
"urge",
"President",
"Bush",
"to",
"veto",
"a",
"defense",
"bill",
"with",
"``",
"inadequate",
"''",
"funding",
"for",
"the",
"program",
".",
"But",
"the",
"strong",
"pitch",
"by",
"Mr.",
"Cheney",
"may",
"be",
"too",
"little",
"too",
"late",
"to",
"prevent",
"damage",
"to",
"SDI",
".",
"The",
"House",
"has",
"already",
"voted",
"for",
"a",
"deep",
"cut",
"in",
"funding",
",",
"and",
"in",
"the",
"end",
"the",
"program",
"'s",
"backers",
"will",
"be",
"hard",
"pressed",
"to",
"head",
"off",
"some",
"reduction",
"in",
"spending",
"next",
"year",
".",
"And",
"while",
"the",
"defense",
"secretary",
"is",
"speaking",
"out",
",",
"President",
"Bush",
"himself",
"has",
"n't",
"launched",
"any",
"high-visibility",
"campaign",
"to",
"drum",
"up",
"support",
",",
"as",
"President",
"Reagan",
"did",
".",
"The",
"administration",
"also",
"acknowledges",
"that",
"it",
"is",
"n't",
"pursuing",
"Mr.",
"Reagan",
"'s",
"original",
"vision",
"of",
"an",
"``",
"impenetrable",
"shield",
"''",
"protecting",
"the",
"whole",
"U.S.",
",",
"but",
"rather",
"a",
"more",
"modest",
"version",
".",
"More",
"ominous",
"to",
"SDI",
"supporters",
",",
"the",
"Bush",
"administration",
"appears",
"to",
"have",
"tacitly",
"accepted",
"a",
"new",
"arms-control",
"proposal",
"from",
"the",
"Soviet",
"Union",
"that",
"spells",
"long-term",
"trouble",
"for",
"Star",
"Wars",
".",
"The",
"Soviets",
"have",
"agreed",
"to",
"complete",
"a",
"treaty",
"cutting",
"strategic",
"weapons",
"without",
"including",
"restrictions",
"on",
"space-based",
"defenses",
".",
"But",
"the",
"Soviets",
"also",
"are",
"insisting",
"that",
"they",
"will",
"reserve",
"the",
"right",
"to",
"withdraw",
"from",
"the",
"completed",
"strategic-arms",
"treaty",
"later",
"on",
"if",
"the",
"U.S.",
"does",
"SDI",
"testing",
"or",
"deployment",
"that",
"the",
"Soviets",
"think",
"violates",
"the",
"existing",
"anti-ballistic-missile",
"treaty",
".",
"It",
"will",
"be",
"hard",
"down",
"the",
"road",
"to",
"persuade",
"Congress",
"to",
"approve",
"money",
"for",
"SDI",
"plans",
"if",
"lawmakers",
"fear",
"those",
"plans",
"could",
"scuttle",
"a",
"completed",
"treaty",
".",
"As",
"a",
"result",
",",
"Frank",
"Gaffney",
",",
"a",
"former",
"Reagan",
"Pentagon",
"aide",
"who",
"now",
"heads",
"the",
"Center",
"for",
"Security",
"Policy",
",",
"charges",
"that",
"the",
"administration",
"'s",
"``",
"professions",
"of",
"continued",
"commitment",
"to",
"development",
"and",
"deployment",
"of",
"the",
"SDI",
"program",
"strain",
"credulity",
".",
"''",
"Still",
",",
"proponents",
"may",
"be",
"shying",
"away",
"from",
"more",
"drumbeating",
"because",
"they",
"sense",
"political",
"tides",
"have",
"turned",
"against",
"arming",
"the",
"Nicaraguan",
"rebels",
"or",
"boosting",
"spending",
"on",
"SDI",
"--",
"particularly",
"when",
"the",
"public",
"perceives",
"the",
"Soviet",
"threat",
"is",
"declining",
"under",
"Mikhail",
"Gorbachev",
".",
"In",
"fact",
",",
"because",
"communism",
"seems",
"to",
"be",
"beating",
"a",
"global",
"retreat",
",",
"some",
"conservatives",
"may",
"simply",
"be",
"so",
"pleased",
"that",
"their",
"anti-communist",
"philosophy",
"is",
"prevailing",
"that",
"they",
"do",
"n't",
"have",
"the",
"fire",
"at",
"the",
"moment",
"to",
"push",
"controversial",
"programs",
".",
"``",
"The",
"short",
"of",
"it",
"is",
"that",
"the",
"most",
"hard-bitten",
"among",
"us",
"can",
"not",
"get",
"into",
"too",
"sour",
"a",
"mood",
"with",
"communism",
"collapsing",
",",
"''",
"says",
"Mitchell",
"Daniels",
",",
"a",
"former",
"Reagan",
"White",
"House",
"aide",
"who",
"now",
"is",
"president",
"of",
"the",
"Hudson",
"Institute",
".",
"Some",
"activists",
"are",
"toiling",
"to",
"raise",
"the",
"profile",
"of",
"the",
"two",
"causes",
".",
"But",
"they",
"say",
"they",
"ca",
"n't",
"make",
"much",
"headway",
"because",
"of",
"a",
"lack",
"of",
"willing",
"leaders",
"in",
"a",
"position",
"to",
"turn",
"the",
"tide",
".",
"One",
"longtime",
"champion",
"of",
"these",
"programs",
"in",
"Congress",
",",
"Republican",
"whip",
"Newt",
"Gingrich",
"of",
"Georgia",
",",
"is",
"distracted",
"by",
"questions",
"about",
"his",
"ethics",
",",
"conservatives",
"note",
".",
"Other",
"conservative",
"champions",
",",
"like",
"Wyoming",
"Republican",
"Sen.",
"Malcolm",
"Wallop",
",",
"a",
"longtime",
"SDI",
"advocate",
",",
"do",
"n't",
"have",
"the",
"clout",
"with",
"the",
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"White",
"House",
"that",
"they",
"enjoyed",
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".",
"Above",
"all",
",",
"though",
",",
"proponents",
"say",
"neither",
"the",
"Contra",
"nor",
"the",
"SDI",
"cause",
"can",
"be",
"pushed",
"much",
"further",
"without",
"more",
"presidential",
"support",
".",
"``",
"For",
"there",
"to",
"be",
"wind",
"in",
"the",
"sails",
"of",
"any",
"program",
",",
"the",
"chief",
"executive",
"has",
"to",
"be",
"blowing",
"in",
"the",
"sails",
",",
"''",
"says",
"Rep.",
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".",
"All",
"this",
"causes",
"Rep.",
"Hyde",
"to",
"muse",
"about",
"an",
"alternate",
"way",
"to",
"drum",
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".",
"``",
"What",
"I",
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",",
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"hustings",
"to",
"regenerate",
"enthusiasm",
"for",
"SDI",
",",
"''",
"the",
"congressman",
"says",
"."
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[
"Bond",
"prices",
"posted",
"strong",
"gains",
"as",
"investors",
"went",
"on",
"a",
"bargain",
"hunt",
".",
"But",
"while",
"the",
"overall",
"market",
"improved",
",",
"the",
"new-issue",
"junk-bond",
"market",
"continued",
"to",
"count",
"casualties",
",",
"even",
"as",
"junk-bond",
"prices",
"rose",
".",
"Yesterday",
",",
"Prudential-Bache",
"Securities",
"Inc.",
"said",
"it",
"postponed",
"a",
"$",
"220",
"million",
"senior",
"subordinated",
"debenture",
"offering",
"by",
"York",
"International",
"Corp",
".",
"And",
"Donaldson",
",",
"Lufkin",
"&",
"Jenrette",
"Securities",
"Corp.",
"scrambled",
"to",
"restructure",
"and",
"improve",
"the",
"potential",
"returns",
"on",
"a",
"$",
"475",
"million",
"debenture",
"offering",
"by",
"Chicago",
"&",
"North",
"Western",
"Acquisition",
"Corp.",
"that",
"was",
"still",
"being",
"negotiated",
"late",
"last",
"night",
".",
"The",
"issue",
"by",
"Chicago",
"&",
"North",
"Western",
"is",
"one",
"of",
"the",
"so-called",
"good",
"junk-bond",
"offerings",
"on",
"the",
"new-issue",
"calendar",
".",
"Some",
"analysts",
"said",
"the",
"restructuring",
"of",
"the",
"railroad",
"concern",
"'s",
"issue",
"shows",
"how",
"tough",
"it",
"is",
"for",
"underwriters",
"to",
"sell",
"even",
"the",
"junk",
"bonds",
"of",
"a",
"company",
"considered",
"to",
"be",
"a",
"relatively",
"good",
"credit",
"risk",
".",
"Since",
"last",
"week",
"'s",
"junk-bond",
"market",
"debacle",
",",
"many",
"new",
"issues",
"of",
"high-yield",
",",
"high-risk",
"corporate",
"bonds",
"have",
"either",
"been",
"scaled",
"back",
",",
"delayed",
"or",
"dropped",
".",
"On",
"Wednesday",
",",
"Drexel",
"Burnham",
"Lambert",
"Inc.",
"had",
"to",
"slash",
"the",
"size",
"of",
"Continental",
"Airlines",
"'",
"junk-bond",
"offering",
"to",
"$",
"71",
"million",
"from",
"$",
"150",
"million",
".",
"Salomon",
"Brothers",
"Inc.",
"has",
"delayed",
"Grand",
"Union",
"Co.",
"'s",
"$",
"1.16",
"billion",
"junk-bond",
"offering",
"while",
"it",
"restructures",
"the",
"transaction",
".",
"Last",
"week",
",",
"the",
"Grand",
"Union",
"offering",
"was",
"sweetened",
"to",
"include",
"warrants",
"that",
"allow",
"bondholders",
"to",
"acquire",
"common",
"stock",
".",
"Prudential-Bache",
"said",
"the",
"York",
"issue",
"was",
"delayed",
"because",
"of",
"market",
"conditions",
".",
"``",
"Everything",
"is",
"going",
"through",
"firehoops",
"right",
"now",
",",
"and",
"-LCB-",
"Chicago",
"&",
"North",
"Western",
"-RCB-",
"is",
"no",
"exception",
",",
"''",
"said",
"Mariel",
"Clemensen",
",",
"vice",
"president",
",",
"high-yield",
"research",
",",
"at",
"Citicorp",
".",
"Portfolio",
"managers",
"say",
"sweeteners",
"like",
"equity",
"kickers",
"and",
"stricter",
"protective",
"covenants",
"may",
"increasingly",
"be",
"required",
"to",
"sell",
"junk-bond",
"deals",
".",
"Dan",
"Baldwin",
",",
"managing",
"director",
"of",
"high-yield",
"investments",
"at",
"Chancellor",
"Capital",
"Management",
",",
"said",
"the",
"Chicago",
"&",
"North",
"Western",
"offering",
"was",
"restructured",
"in",
"part",
"because",
"``",
"several",
"large",
"insurance",
"buyers",
"right",
"now",
"are",
"demanding",
"equity",
"as",
"part",
"of",
"the",
"package",
".",
"If",
"you",
"'re",
"going",
"to",
"take",
"the",
"risk",
"in",
"this",
"market",
",",
"you",
"want",
"something",
"extra",
".",
"''",
"Mr.",
"Baldwin",
"likes",
"the",
"offering",
".",
"But",
"several",
"mutual-fund",
"managers",
",",
"nervous",
"about",
"the",
"deteriorating",
"quality",
"of",
"their",
"junk-bond",
"portfolios",
"and",
"shy",
"about",
"buying",
"new",
"issues",
",",
"said",
"they",
"'re",
"staying",
"away",
"from",
"any",
"junk",
"security",
"that",
"is",
"n't",
"considered",
"first",
"rate",
"for",
"its",
"class",
".",
"While",
"they",
"consider",
"the",
"Chicago",
"&",
"North",
"Western",
"issue",
"to",
"be",
"good",
",",
"they",
"do",
"n't",
"view",
"it",
"as",
"the",
"best",
".",
"To",
"lure",
"buyers",
"to",
"the",
"Chicago",
"&",
"North",
"Western",
"bonds",
",",
"portfolio",
"managers",
"said",
"Donaldson",
"Lufkin",
"sweetened",
"the",
"transaction",
"by",
"offering",
"the",
"bonds",
"with",
"a",
"resettable",
"interest",
"rate",
"and",
"a",
"10",
"%",
"equity",
"kicker",
".",
"The",
"bonds",
"are",
"expected",
"to",
"have",
"a",
"14",
"1/2",
"%",
"coupon",
"rate",
".",
"The",
"equity",
"arrangement",
"apparently",
"would",
"allow",
"bondholders",
"to",
"buy",
"a",
"total",
"of",
"10",
"%",
"of",
"the",
"stock",
"of",
"CNW",
"Corp.",
",",
"Chicago",
"&",
"North",
"Western",
"'s",
"parent",
"company",
".",
"Donaldson",
"Lufkin",
"declined",
"to",
"comment",
"on",
"the",
"restructuring",
".",
"According",
"to",
"some",
"analysts",
"familiar",
"with",
"the",
"negotiations",
",",
"the",
"10",
"%",
"of",
"equity",
"would",
"come",
"directly",
"from",
"Donaldson",
"Lufkin",
"and",
"a",
"fund",
"affiliated",
"with",
"the",
"investment",
"bank",
"Blackstone",
"Group",
",",
"which",
"would",
"reduce",
"their",
"CNW",
"equity",
"holdings",
"by",
"5",
"%",
"each",
".",
"That",
"would",
"leave",
"the",
"Blackstone",
"fund",
"with",
"a",
"60",
"%",
"stake",
"and",
"Donaldson",
"Lufkin",
"with",
"15",
"%",
".",
"Despite",
"the",
"problems",
"with",
"new",
"issues",
",",
"high-yield",
"bonds",
"showed",
"gains",
"in",
"the",
"secondary",
",",
"or",
"resell",
",",
"market",
".",
"Junk",
"bonds",
"ended",
"about",
"one-half",
"point",
"higher",
"with",
"so-called",
"high-quality",
"issues",
"from",
"RJR",
"Capital",
"Holdings",
"Corp.",
"and",
"Petrolane",
"Gas",
"Service",
"Limited",
"Partnership",
"rising",
"one",
"point",
".",
"In",
"the",
"Treasury",
"market",
",",
"the",
"benchmark",
"30-year",
"bond",
"rose",
"seven-eighths",
"point",
",",
"or",
"$",
"8.75",
"for",
"each",
"$",
"1,000",
"face",
"amount",
".",
"The",
"gain",
"reflects",
"fresh",
"economic",
"evidence",
"that",
"inflation",
"is",
"moderating",
"while",
"the",
"economy",
"slows",
".",
"That",
"raised",
"hopes",
"that",
"interest",
"rates",
"will",
"continue",
"to",
"move",
"lower",
".",
"The",
"Labor",
"Department",
"reported",
"that",
"consumer",
"prices",
"rose",
"just",
"0.2",
"%",
"last",
"month",
",",
"slightly",
"lower",
"than",
"some",
"economists",
"had",
"expected",
".",
"But",
"there",
"were",
"also",
"rumors",
"yesterday",
"that",
"several",
"Japanese",
"institutional",
"investors",
"were",
"shifting",
"their",
"portfolios",
"and",
"buying",
"long-term",
"bonds",
"while",
"selling",
"shorter-term",
"Treasurys",
".",
"Short-term",
"Treasury",
"securities",
"ended",
"narrowly",
"mixed",
",",
"with",
"two-year",
"notes",
"posting",
"slight",
"declines",
"while",
"three-year",
"notes",
"were",
"slightly",
"higher",
".",
"Yesterday",
",",
"the",
"Fed",
"executed",
"four-day",
"matched",
"sales",
",",
"a",
"technical",
"trading",
"operation",
"designed",
"to",
"drain",
"reserves",
"from",
"the",
"banking",
"system",
".",
"The",
"move",
"was",
"interpreted",
"by",
"some",
"economists",
"as",
"a",
"sign",
"that",
"the",
"Fed",
"does",
"n't",
"want",
"the",
"federal",
"funds",
"rate",
"to",
"move",
"any",
"lower",
"than",
"the",
"8",
"3/4",
"%",
"at",
"which",
"it",
"has",
"been",
"hovering",
"around",
"during",
"the",
"past",
"week",
".",
"The",
"closely",
"watched",
"funds",
"rate",
"is",
"what",
"banks",
"charge",
"each",
"other",
"on",
"overnight",
"loans",
".",
"It",
"is",
"considered",
"an",
"early",
"signal",
"of",
"Fed",
"credit",
"policy",
"changes",
".",
"``",
"The",
"fact",
"that",
"they",
"did",
"four-day",
"matched",
"sales",
"means",
"they",
"are",
"not",
"in",
"a",
"mood",
"to",
"ease",
"aggressively",
".",
"They",
"are",
"telling",
"us",
"that",
"-LCB-",
"8",
"3/4",
"%",
"-RCB-",
"is",
"as",
"low",
"as",
"they",
"want",
"to",
"see",
"the",
"fed",
"funds",
"rate",
",",
"''",
"said",
"Robert",
"Chandross",
"at",
"Lloyds",
"Bank",
"PLC",
".",
"Treasury",
"Securities",
"The",
"benchmark",
"30-year",
"bond",
"was",
"quoted",
"late",
"at",
"a",
"price",
"of",
"101",
"25/32",
"to",
"yield",
"7.955",
"%",
",",
"compared",
"with",
"100",
"29/32",
"to",
"yield",
"8.032",
"%",
"Wednesday",
".",
"The",
"latest",
"10-year",
"notes",
"were",
"quoted",
"late",
"at",
"100",
"9/32",
"to",
"yield",
"7.937",
"%",
",",
"compared",
"with",
"99",
"26/32",
"to",
"yield",
"8.007",
"%",
".",
"Short-term",
"rates",
"rose",
"yesterday",
".",
"The",
"discount",
"rate",
"on",
"three-month",
"Treasury",
"bills",
"rose",
"to",
"7.56",
"%",
"from",
"7.51",
"%",
"Wednesday",
",",
"while",
"the",
"rate",
"on",
"six-month",
"bills",
"rose",
"to",
"7.57",
"%",
"from",
"7.53",
"%",
".",
"Meanwhile",
",",
"the",
"Treasury",
"sold",
"$",
"9.75",
"billion",
"of",
"52-week",
"bills",
"yesterday",
".",
"The",
"average",
"yield",
"on",
"the",
"bills",
"was",
"7.35",
"%",
",",
"down",
"from",
"7.61",
"%",
"at",
"the",
"previous",
"52-week",
"bill",
"auction",
"Sept.",
"21",
".",
"Yesterday",
"'s",
"yield",
"was",
"the",
"lowest",
"since",
"7.22",
"%",
"on",
"July",
"27",
".",
"Here",
"are",
"details",
"of",
"the",
"auction",
":",
"Rates",
"are",
"determined",
"by",
"the",
"difference",
"between",
"the",
"purchase",
"price",
"and",
"face",
"value",
".",
"Thus",
",",
"higher",
"bidding",
"narrows",
"the",
"investor",
"'s",
"return",
"while",
"lower",
"bidding",
"widens",
"it",
".",
"The",
"percentage",
"rates",
"are",
"calculated",
"on",
"a",
"360-day",
"year",
",",
"while",
"the",
"coupon-equivalent",
"yield",
"is",
"based",
"on",
"a",
"365-day",
"year",
".",
"Corporate",
"Issues",
"Junk",
"bond",
"price",
"climbed",
"yesterday",
"despite",
"skittishness",
"in",
"the",
"new-issue",
"market",
"for",
"high-yield",
"securities",
".",
"Dealers",
"said",
"junk",
"bond",
"issues",
"on",
"average",
"were",
"up",
"by",
"1/4",
"to",
"1/2",
"point",
"with",
"so-called",
"quality",
"issues",
"from",
"RJR",
"Capital",
"Holdings",
"Corp.",
"and",
"Petrolane",
"Gas",
"Service",
"Limited",
"Partnership",
"posting",
"one-point",
"gains",
".",
"Petrolane",
"Gas",
"Service",
"'s",
"13",
"1/4",
"%",
"debentures",
"traded",
"at",
"102",
",",
"after",
"trading",
"around",
"par",
"earlier",
"this",
"week",
",",
"and",
"RJR",
"'s",
"13",
"1/2",
"%",
"subordinated",
"debentures",
"of",
"2001",
"were",
"at",
"101",
"5/8",
"after",
"trading",
"at",
"below",
"par",
"earlier",
"this",
"week",
".",
"Investment-grade",
"bonds",
"were",
"unchanged",
".",
"Municipals",
"Activity",
"was",
"brisk",
"in",
"the",
"high-grade",
"general",
"obligation",
"market",
",",
"as",
"a",
"series",
"of",
"sell",
"lists",
"hit",
"the",
"Street",
"and",
"capped",
"upward",
"price",
"movement",
"in",
"the",
"sector",
".",
"Traders",
"estimated",
"that",
"more",
"than",
"$",
"140",
"million",
"of",
"high-grade",
"bonds",
"was",
"put",
"up",
"for",
"sale",
"via",
"bid-wanted",
"lists",
"circulated",
"by",
"a",
"handful",
"of",
"major",
"brokers",
".",
"There",
"was",
"speculation",
"that",
"the",
"supply",
"was",
"coming",
"from",
"a",
"commercial",
"bank",
"'s",
"portfolios",
".",
"According",
"to",
"market",
"participants",
",",
"the",
"bonds",
"were",
"met",
"with",
"decent",
"bids",
",",
"but",
"the",
"volume",
"of",
"paper",
"left",
"high",
"grades",
"in",
"the",
"10-year",
"and",
"under",
"maturity",
"range",
"unchanged",
"to",
"0.05",
"percentage",
"point",
"higher",
"in",
"yield",
".",
"Away",
"from",
"the",
"general",
"obligation",
"sector",
",",
"activity",
"was",
"modest",
".",
"Long",
"dollar",
"bonds",
"were",
"flat",
"to",
"up",
"3/8",
"point",
".",
"New",
"Jersey",
"Turnpike",
"Authority",
"'s",
"7.20",
"%",
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"2018",
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"3/8",
"at",
"98",
"3/8",
"bid",
"to",
"yield",
"about",
"7.32",
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",",
"down",
"0.03",
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".",
"The",
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"reached",
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"'s",
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",",
"although",
"traders",
"said",
"market",
"participants",
"remained",
"cautious",
".",
"California",
"expects",
"to",
"rely",
"on",
"federal",
"emergency",
"funds",
"and",
"its",
"$",
"1.06",
"billion",
"in",
"general",
"fund",
"reserves",
"to",
"meet",
"the",
"estimated",
"$",
"500",
"million",
"to",
"$",
"1",
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"in",
"damages",
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",",
"according",
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"a",
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".",
"It",
"'s",
"also",
"unclear",
"precisely",
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"the",
"state",
"will",
"rebuild",
"its",
"reserve",
",",
"said",
"Cindy",
"Katz",
",",
"assistant",
"director",
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"'s",
"department",
"of",
"finance",
",",
"although",
"she",
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"a",
"bond",
"offering",
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"is",
"n't",
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".",
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",",
"new",
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"was",
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".",
"The",
"largest",
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"arena",
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"a",
"$",
"55.7",
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"school",
"financing",
"bonds",
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"the",
"Virginia",
"Public",
"School",
"Authority",
".",
"A",
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",",
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".",
"Mortgage-Backed",
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"Mortgage",
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",",
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"gains",
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"a",
"shift",
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"the",
"shape",
"of",
"the",
"Treasury",
"yield",
"curve",
"and",
"rumored",
"mortgage",
"sales",
"by",
"thrifts",
".",
"Premium",
"Government",
"National",
"Mortgage",
"Association",
"securities",
"with",
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"rates",
"of",
"13",
"%",
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"declined",
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"prepayments",
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"plan",
"being",
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"by",
"Congress",
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"the",
"refinancing",
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"government-subsidized",
"mortgages",
".",
"Ginnie",
"Mae",
"13",
"%",
"securities",
"were",
"down",
"about",
"1/4",
"at",
"109",
"30/32",
".",
"If",
"the",
"refinancing",
"plan",
"clears",
"Congress",
",",
"there",
"could",
"be",
"fairly",
"heavy",
"prepayments",
"on",
"the",
"premium",
"securities",
",",
"hurting",
"any",
"investor",
"paying",
"much",
"above",
"par",
"for",
"them",
".",
"In",
"the",
"current-coupon",
"sector",
",",
"a",
"shift",
"in",
"the",
"Treasury",
"yield",
"curve",
"resulting",
"from",
"the",
"better",
"performance",
"of",
"long-dated",
"issues",
"over",
"short-dated",
"securities",
"hurt",
"major",
"coupons",
"because",
"it",
"will",
"become",
"more",
"difficult",
"to",
"structure",
"new",
"derivative",
"securities",
"offerings",
".",
"Ginnie",
"Mae",
"9",
"%",
"securities",
"ended",
"at",
"98",
"6/32",
",",
"up",
"9/32",
",",
"and",
"Federal",
"Home",
"Loan",
"Mortgage",
"Corp.",
"9",
"%",
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"were",
"at",
"97",
"10/32",
",",
"up",
"6/32",
".",
"The",
"Ginnie",
"Mae",
"9",
"%",
"issue",
"was",
"yielding",
"9.42",
"%",
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"a",
"12-year",
"average",
"life",
"assumption",
",",
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"the",
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"10-year",
"note",
"widened",
"0.03",
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"point",
"to",
"1.48",
".",
"While",
"Remic",
"issuance",
"may",
"slow",
"in",
"the",
"coming",
"days",
"because",
"of",
"the",
"shift",
"in",
"the",
"Treasury",
"yield",
"curve",
",",
"underwriters",
"continued",
"to",
"crank",
"out",
"new",
"real",
"estate",
"mortgage",
"investment",
"conduits",
"structured",
"when",
"the",
"yield",
"curve",
"was",
"more",
"favorable",
".",
"Two",
"new",
"Remics",
"totaling",
"$",
"900",
"million",
"were",
"announced",
"by",
"Freddie",
"Mac",
"yesterday",
".",
"Foreign",
"Bonds",
"British",
"government",
"bonds",
"ended",
"little",
"changed",
"as",
"investors",
"awaited",
"an",
"economic",
"policy",
"address",
"last",
"night",
"by",
"Chancellor",
"of",
"the",
"Exchequer",
"Nigel",
"Lawson",
".",
"The",
"Treasury",
"11",
"3/4",
"%",
"bond",
"due",
"2003/2007",
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"down",
"2/32",
"at",
"111",
"29/32",
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"yield",
"10.09",
"%",
",",
"while",
"the",
"11",
"3/4",
"%",
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"1991",
"were",
"unchanged",
"at",
"98",
"19/32",
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"yield",
"12.94",
"%",
".",
"In",
"Japan",
",",
"the",
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"No.",
"111",
"4.6",
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"0.03",
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"95.72",
",",
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"5.32",
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",",
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"Germany",
",",
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"1999",
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"at",
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"7.02",
"%",
"."
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[
"Confidence",
"in",
"the",
"pound",
"is",
"widely",
"expected",
"to",
"take",
"another",
"sharp",
"dive",
"if",
"trade",
"figures",
"for",
"September",
",",
"due",
"for",
"release",
"tomorrow",
",",
"fail",
"to",
"show",
"a",
"substantial",
"improvement",
"from",
"July",
"and",
"August",
"'s",
"near-record",
"deficits",
".",
"Chancellor",
"of",
"the",
"Exchequer",
"Nigel",
"Lawson",
"'s",
"restated",
"commitment",
"to",
"a",
"firm",
"monetary",
"policy",
"has",
"helped",
"to",
"prevent",
"a",
"freefall",
"in",
"sterling",
"over",
"the",
"past",
"week",
".",
"But",
"analysts",
"reckon",
"underlying",
"support",
"for",
"sterling",
"has",
"been",
"eroded",
"by",
"the",
"chancellor",
"'s",
"failure",
"to",
"announce",
"any",
"new",
"policy",
"measures",
"in",
"his",
"Mansion",
"House",
"speech",
"last",
"Thursday",
".",
"This",
"has",
"increased",
"the",
"risk",
"of",
"the",
"government",
"being",
"forced",
"to",
"increase",
"base",
"rates",
"to",
"16",
"%",
"from",
"their",
"current",
"15",
"%",
"level",
"to",
"defend",
"the",
"pound",
",",
"economists",
"and",
"foreign",
"exchange",
"market",
"analysts",
"say",
".",
"``",
"The",
"risks",
"for",
"sterling",
"of",
"a",
"bad",
"trade",
"figure",
"are",
"very",
"heavily",
"on",
"the",
"down",
"side",
",",
"''",
"said",
"Chris",
"Dillow",
",",
"senior",
"U.K.",
"economist",
"at",
"Nomura",
"Research",
"Institute",
".",
"``",
"If",
"there",
"is",
"another",
"bad",
"trade",
"number",
",",
"there",
"could",
"be",
"an",
"awful",
"lot",
"of",
"pressure",
",",
"''",
"noted",
"Simon",
"Briscoe",
",",
"U.K.",
"economist",
"for",
"Midland",
"Montagu",
",",
"a",
"unit",
"of",
"Midland",
"Bank",
"PLC",
".",
"Forecasts",
"for",
"the",
"trade",
"figures",
"range",
"widely",
",",
"but",
"few",
"economists",
"expect",
"the",
"data",
"to",
"show",
"a",
"very",
"marked",
"improvement",
"from",
"the",
"#",
"2",
"billion",
"(",
"$",
"3.2",
"billion",
")",
"deficit",
"in",
"the",
"current",
"account",
"reported",
"for",
"August",
".",
"The",
"August",
"deficit",
"and",
"the",
"#",
"2.2",
"billion",
"gap",
"registered",
"in",
"July",
"are",
"topped",
"only",
"by",
"the",
"#",
"2.3",
"billion",
"deficit",
"of",
"October",
"1988",
".",
"Sanjay",
"Joshi",
",",
"European",
"economist",
"at",
"Baring",
"Brothers",
"&",
"Co.",
",",
"said",
"there",
"is",
"no",
"sign",
"that",
"Britain",
"'s",
"manufacturing",
"industry",
"is",
"transforming",
"itself",
"to",
"boost",
"exports",
".",
"At",
"the",
"same",
"time",
",",
"he",
"remains",
"fairly",
"pessimistic",
"about",
"the",
"outlook",
"for",
"imports",
",",
"given",
"continued",
"high",
"consumer",
"and",
"capital",
"goods",
"inflows",
".",
"He",
"reckons",
"the",
"current",
"account",
"deficit",
"will",
"narrow",
"to",
"only",
"#",
"1.8",
"billion",
"in",
"September",
".",
"However",
",",
"Mr.",
"Dillow",
"said",
"he",
"believes",
"that",
"a",
"reduction",
"in",
"raw",
"material",
"stockbuilding",
"by",
"industry",
"could",
"lead",
"to",
"a",
"sharp",
"drop",
"in",
"imports",
".",
"Combined",
"with",
"at",
"least",
"some",
"rebound",
"in",
"exports",
"after",
"August",
"'s",
"unexpected",
"decline",
",",
"the",
"deficit",
"could",
"narrow",
"to",
"as",
"little",
"as",
"#",
"1.3",
"billion",
".",
"Mr.",
"Briscoe",
",",
"who",
"also",
"forecasts",
"a",
"#",
"1.3",
"billion",
"current",
"account",
"gap",
",",
"warns",
"that",
"even",
"if",
"the",
"trade",
"figures",
"are",
"bullish",
"for",
"sterling",
",",
"the",
"currency",
"wo",
"n't",
"advance",
"much",
"because",
"investors",
"will",
"want",
"to",
"see",
"further",
"evidence",
"of",
"the",
"turnaround",
"before",
"adjusting",
"positions",
".",
"Nevertheless",
",",
"he",
"noted",
",",
"``",
"No",
"one",
"will",
"want",
"to",
"go",
"into",
"the",
"trade",
"figures",
"without",
"a",
"flat",
"position",
"''",
"in",
"the",
"pound",
".",
"Meanwhile",
",",
"overall",
"evidence",
"on",
"the",
"economy",
"remains",
"fairly",
"clouded",
".",
"In",
"his",
"Mansion",
"House",
"speech",
",",
"Mr.",
"Lawson",
"warned",
"that",
"a",
"further",
"slowdown",
"can",
"be",
"expected",
"as",
"the",
"impact",
"of",
"the",
"last",
"rise",
"in",
"interest",
"rates",
"earlier",
"this",
"month",
"takes",
"effect",
".",
"U.K.",
"base",
"rates",
"are",
"at",
"their",
"highest",
"level",
"in",
"eight",
"years",
".",
"But",
"consumer",
"expenditure",
"data",
"released",
"Friday",
"do",
"n't",
"suggest",
"that",
"the",
"U.K.",
"economy",
"is",
"slowing",
"that",
"quickly",
".",
"The",
"figures",
"show",
"that",
"spending",
"rose",
"0.1",
"%",
"in",
"the",
"third",
"quarter",
"from",
"the",
"second",
"quarter",
"and",
"was",
"up",
"3.8",
"%",
"from",
"a",
"year",
"ago",
".",
"This",
"compares",
"with",
"a",
"1.6",
"%",
"rise",
"in",
"the",
"second",
"from",
"the",
"first",
"quarter",
"and",
"a",
"5.4",
"%",
"increase",
"from",
"the",
"second",
"quarter",
"of",
"1988",
".",
"Mr.",
"Dillow",
"said",
"the",
"data",
"show",
"the",
"economy",
"``",
"is",
"still",
"quite",
"strong",
",",
"''",
"but",
"suggestions",
"that",
"much",
"of",
"the",
"spending",
"went",
"on",
"services",
"rather",
"than",
"consumer",
"goods",
"should",
"reduce",
"fears",
"of",
"more",
"import",
"rises",
".",
"Certainly",
",",
"the",
"chancellor",
"has",
"made",
"it",
"clear",
"that",
"he",
"is",
"prepared",
"to",
"increase",
"interest",
"rates",
"again",
"if",
"necessary",
"to",
"both",
"ensure",
"that",
"a",
"substantial",
"slowdown",
"does",
"take",
"place",
"and",
"that",
"sterling",
"does",
"n't",
"decline",
"further",
".",
"Thursday",
",",
"he",
"reminded",
"his",
"audience",
"that",
"the",
"government",
"``",
"can",
"not",
"allow",
"the",
"necessary",
"rigor",
"of",
"monetary",
"policy",
"to",
"be",
"undermined",
"by",
"exchange",
"rate",
"weakness",
".",
"''",
"Analysts",
"agree",
"there",
"is",
"little",
"holding",
"sterling",
"firm",
"at",
"the",
"moment",
"other",
"than",
"Mr.",
"Lawson",
"'s",
"promise",
"that",
"rates",
"will",
"be",
"pushed",
"higher",
"if",
"necessary",
".",
"And",
",",
"they",
"warn",
",",
"any",
"further",
"drop",
"in",
"the",
"government",
"'s",
"popularity",
"could",
"swiftly",
"make",
"this",
"promise",
"sound",
"hollow",
".",
"Sterling",
"was",
"already",
"showing",
"some",
"signs",
"of",
"a",
"lack",
"of",
"confidence",
"in",
"Mr.",
"Lawson",
"'s",
"promise",
"Friday",
".",
"In",
"European",
"trading",
"it",
"declined",
"to",
"$",
"1.5890",
"and",
"2.9495",
"marks",
"from",
"$",
"1.5940",
"and",
"2.9429",
"marks",
"late",
"Thursday",
".",
"Economists",
"suggested",
"that",
"if",
"the",
"pound",
"falls",
"much",
"below",
"2.90",
"marks",
",",
"the",
"government",
"will",
"be",
"forced",
"to",
"increase",
"rates",
"to",
"16",
"%",
",",
"both",
"to",
"halt",
"any",
"further",
"decline",
"and",
"ensure",
"that",
"the",
"balance",
"of",
"monetary",
"policy",
"remains",
"unchanged",
".",
"Friday",
"'s",
"Market",
"Activity",
"The",
"dollar",
"posted",
"gains",
"in",
"quiet",
"trading",
"as",
"concerns",
"about",
"equities",
"abated",
".",
"Foreign",
"exchange",
"dealers",
"said",
"that",
"the",
"currency",
"market",
"has",
"begun",
"to",
"distance",
"itself",
"from",
"the",
"volatile",
"stock",
"exchange",
",",
"which",
"has",
"preoccupied",
"the",
"market",
"since",
"Oct.",
"13",
",",
"when",
"the",
"Dow",
"Jones",
"Industrial",
"Average",
"plunged",
"more",
"than",
"190",
"points",
".",
"Currency",
"analysts",
"predict",
"that",
"in",
"the",
"coming",
"week",
"the",
"foreign",
"exchange",
"market",
"will",
"shift",
"its",
"focus",
"back",
"to",
"economic",
"fundamentals",
",",
"keeping",
"a",
"close",
"eye",
"out",
"for",
"any",
"signs",
"of",
"monetary",
"easing",
"by",
"U.S.",
"Federal",
"Reserve",
".",
"Late",
"in",
"the",
"New",
"York",
"trading",
"day",
",",
"the",
"dollar",
"was",
"quoted",
"at",
"1.8578",
"marks",
",",
"up",
"from",
"1.8470",
"marks",
"late",
"Thursday",
"in",
"New",
"York",
".",
"The",
"U.S.",
"currency",
"was",
"also",
"changing",
"hands",
"at",
"142.43",
"yen",
",",
"up",
"from",
"141.70",
"yen",
"in",
"New",
"York",
"late",
"Thursday",
".",
"In",
"Tokyo",
"on",
"Monday",
",",
"the",
"U.S.",
"currency",
"opened",
"for",
"trading",
"at",
"141.95",
"yen",
",",
"up",
"from",
"Friday",
"'s",
"Tokyo",
"close",
"of",
"141.35",
"yen",
".",
"On",
"the",
"Commodity",
"Exchange",
"in",
"New",
"York",
",",
"gold",
"for",
"current",
"delivery",
"settled",
"at",
"$",
"367.30",
"an",
"ounce",
",",
"up",
"20",
"cents",
".",
"Estimated",
"volume",
"was",
"a",
"light",
"2.4",
"million",
"ounces",
".",
"In",
"early",
"trading",
"in",
"Hong",
"Kong",
"Monday",
",",
"gold",
"was",
"quoted",
"at",
"$",
"366.50",
"an",
"ounce",
"."
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",",
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",",
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",",
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",",
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"and",
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",",
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[
"Hardly",
"a",
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"passes",
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"news",
"photos",
"of",
"the",
"police",
"dragging",
"limp",
"protesters",
"from",
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"or",
"thoroughfare",
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".",
"Of",
"recent",
"note",
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",",
"anti-nuclear",
"activists",
",",
"animal",
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"protesters",
",",
"college",
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"concerned",
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"racism",
",",
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"groups",
",",
"various",
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"``",
"environmentalists",
"''",
"and",
"those",
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"the",
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"against",
"AIDS",
".",
"Maybe",
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",",
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"certainly",
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"as",
"we",
"know",
"it",
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".",
"The",
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",",
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"great",
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"one",
",",
"''",
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"of",
"passive",
"resistance",
"against",
"the",
"British",
"government",
"in",
"India",
".",
"Unfortunately",
",",
"according",
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"Webster",
"'s",
"Biographical",
"Dictionary",
",",
"``",
"His",
"policies",
"went",
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"resulted",
"...",
"in",
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"disturbances",
"''",
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"``",
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"a",
"second",
"imprisonment",
".",
"''",
"I",
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",",
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"law",
"breaking",
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"was",
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"by",
"a",
"foreign",
"power",
",",
"and",
"Indians",
"were",
"not",
"able",
"to",
"participate",
"fully",
"in",
"decisions",
"that",
"vitally",
"affected",
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".",
"It",
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",",
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",",
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",",
"non-violent",
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",",
"where",
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"have",
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"recourse",
"to",
"the",
"ballot",
"box",
"to",
"effect",
"change",
".",
"Where",
"truly",
"representative",
"governments",
"are",
"safeguarded",
"by",
"constitutional",
"protections",
"of",
"human",
"rights",
"and",
"an",
"independent",
"judiciary",
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"those",
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",",
"there",
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"no",
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"breaking",
"the",
"law",
"because",
"some",
"individual",
"or",
"group",
"disagrees",
"with",
"it",
".",
"There",
"may",
"be",
"a",
"few",
"cases",
"where",
"the",
"law",
"breaking",
"is",
"well",
"pinpointed",
"and",
"so",
"completely",
"non-invasive",
"of",
"the",
"rights",
"of",
"others",
"that",
"it",
"is",
"difficult",
"to",
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"it",
".",
"The",
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"of",
"Rosa",
"Parks",
",",
"the",
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"back",
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"the",
"bus",
",",
"comes",
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"mind",
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"an",
"illustration",
".",
"But",
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"cases",
"of",
"non-violent",
"civil",
"disobedience",
"are",
"not",
"nearly",
"so",
"benign",
".",
"The",
"public",
"has",
"a",
"tendency",
"to",
"equate",
"lawful",
"demonstrations",
"with",
"non-violent",
"civil",
"disobedience",
".",
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",",
"but",
"there",
"is",
"a",
"fundamental",
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"them",
".",
"Lawful",
"demonstrations",
",",
"such",
"as",
"peaceful",
"picketing",
"and",
"other",
"assemblages",
"that",
"do",
"not",
"disturb",
"the",
"peace",
"or",
"cause",
"a",
"public",
"nuisance",
"or",
"interfere",
"with",
"the",
"rights",
"of",
"others",
",",
"are",
"rights",
"guaranteed",
"by",
"any",
"truly",
"free",
"system",
"of",
"government",
".",
"Civil",
"disobedience",
",",
"violent",
"or",
"non-violent",
",",
"is",
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".",
"The",
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"civil",
"disobedience",
";",
"but",
",",
"before",
"we",
"get",
"on",
"with",
"that",
",",
"let",
"me",
"make",
"just",
"a",
"few",
"tangential",
"remarks",
"about",
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"demonstrations",
".",
"They",
"are",
"useful",
"to",
"call",
"public",
"attention",
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"grievances",
",",
"but",
"they",
"have",
"little",
"value",
"in",
"educating",
"anyone",
"about",
"the",
"issues",
"in",
"dispute",
".",
"The",
"delight",
"of",
"television",
"in",
"dramatic",
"confrontation",
"encourages",
"overuse",
"of",
"slogans",
"chanted",
"through",
"bullhorns",
",",
"militant",
"gestures",
",",
"accusatory",
"signs",
"and",
"other",
"emotionally",
"inspired",
"tactics",
".",
"Civilized",
"discourse",
"and",
"an",
"environment",
"where",
"compromise",
"can",
"begin",
"are",
"lost",
"in",
"a",
"hostile",
"posture",
"abetted",
"by",
"superficial",
"media",
"interviews",
".",
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"best",
",",
"demonstrations",
"are",
"overused",
"and",
"boringly",
"uninformative",
";",
"at",
"worst",
",",
"they",
"can",
"become",
"the",
"stimuli",
"that",
"lead",
"to",
"law",
"breaking",
".",
"Demonstrations",
"are",
"particularly",
"apt",
"to",
"degenerate",
"into",
"criminal",
"conduct",
"when",
"they",
"leave",
"the",
"site",
"of",
"the",
"grievance",
"and",
"become",
"mobile",
".",
"Petty",
"criminals",
"and",
"street",
"people",
"looking",
"for",
"excitement",
"attach",
"themselves",
"like",
"remora",
"to",
"the",
"fringes",
"of",
"the",
"crowd",
"and",
"use",
"the",
"protest",
"as",
"an",
"excuse",
"for",
"rock",
"throwing",
",",
"auto",
"trashing",
",",
"arson",
",",
"window",
"breaking",
",",
"looting",
",",
"pocket",
"picking",
"and",
"general",
"hooliganism",
".",
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"the",
"whole",
"purpose",
"of",
"the",
"demonstration",
"is",
"lost",
"in",
"mob",
"mania",
".",
"There",
"are",
"better",
"ways",
"to",
"promote",
"a",
"cause",
".",
"Where",
"non-violent",
"civil",
"disobedience",
"is",
"the",
"centerpiece",
",",
"rather",
"than",
"a",
"lawful",
"demonstration",
"that",
"may",
"only",
"attract",
"crime",
",",
"it",
"is",
"difficult",
"to",
"justify",
".",
"Some",
"find",
"no",
"harm",
"in",
"the",
"misdemeanors",
"of",
"trespass",
",",
"minor",
"property",
"destruction",
",",
"blocking",
"traffic",
"and",
"the",
"like",
".",
"They",
"say",
"these",
"are",
"small",
"prices",
"to",
"pay",
"for",
"galvanizing",
"action",
"for",
"the",
"all-important",
"cause",
".",
"The",
"crimes",
"may",
"appear",
"small",
",",
"but",
"the",
"prices",
"can",
"be",
"huge",
".",
"Here",
"are",
"two",
"cases",
"to",
"illustrate",
".",
"Assume",
"a",
"neighborhood",
"demonstration",
"to",
"protest",
"speeding",
"on",
"a",
"certain",
"road",
"or",
"a",
"careless",
"accident",
"involving",
"a",
"police",
"car",
".",
"The",
"protesters",
"lie",
"down",
"in",
"the",
"street",
",",
"blocking",
"traffic",
",",
"and",
"will",
"not",
"move",
"until",
"the",
"authorities",
"carry",
"them",
"away",
".",
"Assume",
"that",
"someone",
"caught",
"in",
"the",
"jam",
"has",
"a",
"heart",
"attack",
".",
"There",
"is",
"no",
"way",
"to",
"get",
"an",
"ambulance",
"in",
"quickly",
"to",
"move",
"him",
"to",
"a",
"hospital",
".",
"He",
"dies",
".",
"The",
"demonstration",
"was",
"non-violent",
"and",
"involved",
"only",
"a",
"simple",
"misdemeanor",
",",
"but",
"its",
"impact",
"on",
"that",
"individual",
"was",
"violent",
"and",
"terminal",
".",
"Assume",
"that",
"a",
"TV",
"network",
"is",
"airing",
"a",
"celebrity",
"interview",
"program",
"with",
"a",
"live",
"audience",
".",
"The",
"politician",
"appearing",
"is",
"highly",
"controversial",
"and",
"has",
"recently",
"generated",
"a",
"good",
"deal",
"of",
"rancor",
"amid",
"certain",
"groups",
".",
"In",
"a",
"planned",
"protest",
"against",
"his",
"appearance",
",",
"several",
"members",
"of",
"the",
"studio",
"audience",
"chain",
"themselves",
"in",
"front",
"of",
"the",
"TV",
"cameras",
"in",
"such",
"a",
"way",
"that",
"the",
"program",
"can",
"not",
"continue",
".",
"The",
"network",
"must",
"refund",
"money",
"to",
"the",
"advertisers",
"and",
"loses",
"considerable",
"revenue",
"and",
"prestige",
".",
"The",
"demonstrators",
"have",
"been",
"non-violent",
",",
"but",
"the",
"result",
"of",
"their",
"trespasses",
"has",
"been",
"to",
"seriously",
"impair",
"the",
"rights",
"of",
"others",
"unconnected",
"with",
"their",
"dispute",
".",
"It",
"might",
"be",
"alleged",
"that",
"TV",
"has",
"done",
"more",
"than",
"its",
"share",
"to",
"popularize",
"and",
"promote",
"non-violent",
"civil",
"disobedience",
",",
"so",
"the",
"second",
"situation",
"hypothesized",
"above",
"would",
"be",
"simply",
"a",
"case",
"of",
"``",
"chickens",
"coming",
"home",
"to",
"roost",
".",
"''",
"Or",
"maybe",
"the",
"TV",
"network",
"would",
"lose",
"nothing",
".",
"Geraldo",
"or",
"Phil",
"would",
"probably",
"pull",
"up",
"another",
"camera",
"and",
"interview",
"the",
"chained",
"protesters",
".",
"Let",
"us",
"look",
"for",
"a",
"moment",
"at",
"another",
"type",
"of",
"non-violent",
"civil",
"disobedience",
"that",
"only",
"harms",
"other",
"people",
"indirectly",
",",
"yet",
"does",
"irreparable",
"damage",
"to",
"the",
"nation",
"as",
"a",
"whole",
".",
"I",
"am",
"referring",
"to",
"those",
"young",
"men",
"who",
"chose",
"to",
"disobey",
"their",
"country",
"'s",
"call",
"to",
"arms",
"during",
"the",
"Vietnam",
"war",
"and",
"fled",
"to",
"Canada",
"or",
"some",
"other",
"sanctuary",
"to",
"avoid",
"combat",
".",
"Their",
"cowardly",
"acts",
"of",
"civil",
"disobedience",
",",
"which",
"they",
"tried",
"to",
"hide",
"under",
"the",
"cloak",
"of",
"outrage",
"at",
"a",
"war",
"they",
"characterized",
"as",
"``",
"immoral",
",",
"''",
"weakened",
"the",
"national",
"fabric",
"and",
"threw",
"additional",
"burdens",
"on",
"those",
"who",
"served",
"honorably",
"in",
"that",
"conflict",
".",
"Even",
"more",
"at",
"fault",
"are",
"those",
"leaders",
"in",
"and",
"out",
"of",
"government",
"who",
"urged",
"and",
"supported",
"their",
"defections",
",",
"thereby",
"giving",
"great",
"help",
"and",
"comfort",
"to",
"the",
"enemy",
"propagandists",
".",
"It",
"is",
"amazing",
"that",
"the",
"ensuing",
"mass",
"executions",
"in",
"Vietnam",
"and",
"Cambodia",
"do",
"not",
"weight",
"more",
"heavily",
"on",
"minds",
"so",
"morally",
"fine-tuned",
".",
"Worse",
",",
"it",
"remained",
"to",
"a",
"well-meaning",
"but",
"naive",
"president",
"of",
"the",
"United",
"States",
"to",
"administer",
"the",
"final",
"infamy",
"upon",
"those",
"who",
"fought",
"and",
"died",
"in",
"Vietnam",
".",
"Under",
"the",
"guise",
"of",
"``",
"healing",
"the",
"wounds",
"of",
"the",
"nation",
",",
"''",
"President",
"Carter",
"pardoned",
"thousands",
"of",
"draft",
"evaders",
",",
"thus",
"giving",
"dignity",
"to",
"their",
"allegations",
"of",
"the",
"war",
"'s",
"``",
"immorality",
".",
"''",
"The",
"precedent",
"having",
"been",
"set",
",",
"who",
"can",
"complain",
"if",
"future",
"generations",
"called",
"upon",
"to",
"defend",
"the",
"U.S.",
"yield",
"to",
"the",
"temptation",
"to",
"avoid",
"the",
"danger",
"of",
"combat",
"by",
"simply",
"declaring",
"the",
"war",
"immoral",
"and",
"hiding",
"until",
"it",
"is",
"over",
"?",
"Finally",
",",
"I",
"think",
"it",
"important",
"to",
"point",
"out",
"the",
"extraordinarily",
"high",
"visibility",
"of",
"non-violent",
"civil",
"disobedience",
"in",
"these",
"days",
"of",
"intensive",
"media",
"coverage",
".",
"Give",
"television",
"a",
"chance",
"to",
"cover",
"live",
"any",
"breaking",
"of",
"the",
"law",
",",
"and",
"no",
"second",
"invitation",
"will",
"be",
"required",
".",
"This",
"brings",
"into",
"question",
"the",
"motives",
"of",
"those",
"who",
"lead",
"civil",
"disobedience",
"demonstrations",
".",
"Do",
"they",
"want",
"the",
"spotlight",
"for",
"themselves",
"or",
"for",
"their",
"cause",
"?",
"Here",
"is",
"a",
"good",
"rule",
"of",
"thumb",
":",
"If",
"the",
"movement",
"produced",
"the",
"leader",
",",
"the",
"chance",
"that",
"he",
"is",
"sincere",
"is",
"much",
"greater",
"than",
"if",
"the",
"leader",
"produced",
"the",
"movement",
".",
"In",
"either",
"case",
",",
"ask",
"yourself",
"whether",
"you",
"have",
"become",
"better",
"informed",
"on",
"the",
"issues",
"under",
"protest",
"by",
"watching",
"the",
"act",
"of",
"civil",
"disobedience",
".",
"If",
"you",
"have",
"not",
",",
"it",
"is",
"probable",
"that",
"a",
"thorough",
"airing",
"of",
"the",
"dispute",
"by",
"calm",
"and",
"rational",
"debate",
"would",
"have",
"been",
"the",
"better",
"course",
".",
"Mr.",
"Agnew",
"was",
"vice",
"president",
"of",
"the",
"U.S.",
"from",
"1969",
"until",
"he",
"resigned",
"in",
"1973",
"."
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[
"Beauty",
"Takes",
"Backseat",
"To",
"Safety",
"on",
"Bridges",
"EVERYONE",
"AGREES",
"that",
"most",
"of",
"the",
"nation",
"'s",
"old",
"bridges",
"need",
"to",
"be",
"repaired",
"or",
"replaced",
".",
"But",
"there",
"'s",
"disagreement",
"over",
"how",
"to",
"do",
"it",
".",
"Highway",
"officials",
"insist",
"the",
"ornamental",
"railings",
"on",
"older",
"bridges",
"are",
"n't",
"strong",
"enough",
"to",
"prevent",
"vehicles",
"from",
"crashing",
"through",
".",
"But",
"other",
"people",
"do",
"n't",
"want",
"to",
"lose",
"the",
"bridges",
"'",
"beautiful",
",",
"sometimes",
"historic",
",",
"features",
".",
"``",
"The",
"primary",
"purpose",
"of",
"a",
"railing",
"is",
"to",
"contain",
"a",
"vehicle",
"and",
"not",
"to",
"provide",
"a",
"scenic",
"view",
",",
"''",
"says",
"Jack",
"White",
",",
"a",
"planner",
"with",
"the",
"Indiana",
"Highway",
"Department",
".",
"He",
"and",
"others",
"prefer",
"to",
"install",
"railings",
"such",
"as",
"the",
"``",
"type",
"F",
"safety",
"shape",
",",
"''",
"a",
"four-foot-high",
"concrete",
"slab",
"with",
"no",
"openings",
".",
"In",
"Richmond",
",",
"Ind.",
",",
"the",
"type",
"F",
"railing",
"is",
"being",
"used",
"to",
"replace",
"arched",
"openings",
"on",
"the",
"G",
"Street",
"Bridge",
".",
"Garret",
"Boone",
",",
"who",
"teaches",
"art",
"at",
"Earlham",
"College",
",",
"calls",
"the",
"new",
"structure",
"``",
"just",
"an",
"ugly",
"bridge",
"''",
"and",
"one",
"that",
"blocks",
"the",
"view",
"of",
"a",
"new",
"park",
"below",
".",
"In",
"Hartford",
",",
"Conn.",
",",
"the",
"Charter",
"Oak",
"Bridge",
"will",
"soon",
"be",
"replaced",
",",
"the",
"cast-iron",
"medallions",
"from",
"its",
"railings",
"relegated",
"to",
"a",
"park",
".",
"Compromises",
"are",
"possible",
".",
"Citizens",
"in",
"Peninsula",
",",
"Ohio",
",",
"upset",
"over",
"changes",
"to",
"a",
"bridge",
",",
"negotiated",
"a",
"deal",
":",
"The",
"bottom",
"half",
"of",
"the",
"railing",
"will",
"be",
"type",
"F",
",",
"while",
"the",
"top",
"half",
"will",
"have",
"the",
"old",
"bridge",
"'s",
"floral",
"pattern",
".",
"Similarly",
",",
"highway",
"engineers",
"agreed",
"to",
"keep",
"the",
"old",
"railings",
"on",
"the",
"Key",
"Bridge",
"in",
"Washington",
",",
"D.C.",
",",
"as",
"long",
"as",
"they",
"could",
"install",
"a",
"crash",
"barrier",
"between",
"the",
"sidewalk",
"and",
"the",
"road",
".",
"Tray",
"Bon",
"?",
"Drink",
"Carrier",
"Competes",
"With",
"Cartons",
"PORTING",
"POTABLES",
"just",
"got",
"easier",
",",
"or",
"so",
"claims",
"Scypher",
"Corp.",
",",
"the",
"maker",
"of",
"the",
"Cup-Tote",
".",
"The",
"Chicago",
"company",
"'s",
"beverage",
"carrier",
",",
"meant",
"to",
"replace",
"cardboard",
"trays",
"at",
"concession",
"stands",
"and",
"fast-food",
"outlets",
",",
"resembles",
"the",
"plastic",
"loops",
"used",
"on",
"six-packs",
"of",
"beer",
",",
"only",
"the",
"loops",
"hang",
"from",
"a",
"web",
"of",
"strings",
".",
"The",
"new",
"carrier",
"can",
"tote",
"as",
"many",
"as",
"four",
"cups",
"at",
"once",
".",
"Inventor",
"Claire",
"Marvin",
"says",
"his",
"design",
"virtually",
"eliminates",
"spilling",
".",
"Lids",
"are",
"n't",
"even",
"needed",
".",
"He",
"also",
"claims",
"the",
"carrier",
"costs",
"less",
"and",
"takes",
"up",
"less",
"space",
"than",
"most",
"paper",
"carriers",
".",
"A",
"few",
"fast-food",
"outlets",
"are",
"giving",
"it",
"a",
"try",
".",
"The",
"company",
"acknowledges",
"some",
"problems",
".",
"A",
"driver",
"has",
"to",
"find",
"something",
"to",
"hang",
"the",
"carrier",
"on",
",",
"so",
"the",
"company",
"supplies",
"a",
"window",
"hook",
".",
"While",
"it",
"breaks",
"down",
"in",
"prolonged",
"sunlight",
",",
"it",
"is",
"n't",
"recyclable",
".",
"And",
"unlike",
"some",
"trays",
",",
"there",
"'s",
"no",
"place",
"for",
"food",
".",
"Spirit",
"of",
"Perestroika",
"Touches",
"Design",
"World",
"AN",
"EXCHANGE",
"of",
"U.S.",
"and",
"Soviet",
"designers",
"promises",
"change",
"on",
"both",
"sides",
".",
"An",
"exhibition",
"of",
"American",
"design",
"and",
"architecture",
"opened",
"in",
"September",
"in",
"Moscow",
"and",
"will",
"travel",
"to",
"eight",
"other",
"Soviet",
"cities",
".",
"The",
"show",
"runs",
"the",
"gamut",
",",
"from",
"a",
"blender",
"to",
"chairs",
"to",
"a",
"model",
"of",
"the",
"Citicorp",
"building",
".",
"The",
"event",
"continues",
"into",
"next",
"year",
"and",
"includes",
"an",
"exchange",
"program",
"to",
"swap",
"design",
"teachers",
"at",
"Carnegie-Mellon",
"and",
"Leningrad",
"'s",
"Mutchin",
"Institute",
".",
"Dan",
"Droz",
",",
"leader",
"of",
"the",
"Carnegie-Mellon",
"group",
",",
"sees",
"benefits",
"all",
"around",
".",
"The",
"Soviets",
",",
"who",
"normally",
"have",
"few",
"clients",
"other",
"than",
"the",
"state",
",",
"will",
"get",
"``",
"exposure",
"to",
"a",
"market",
"system",
",",
"''",
"he",
"says",
".",
"Americans",
"will",
"learn",
"more",
"about",
"making",
"products",
"for",
"the",
"Soviets",
".",
"Mr.",
"Droz",
"says",
"the",
"Soviets",
"could",
"even",
"help",
"U.S.",
"designers",
"renew",
"their",
"sense",
"of",
"purpose",
".",
"``",
"In",
"Moscow",
",",
"they",
"kept",
"asking",
"us",
"things",
"like",
",",
"`",
"Why",
"do",
"you",
"make",
"15",
"different",
"corkscrews",
",",
"when",
"all",
"you",
"need",
"is",
"one",
"good",
"one",
"?",
"'",
"''",
"he",
"says",
".",
"``",
"They",
"got",
"us",
"thinking",
"maybe",
"we",
"should",
"be",
"helping",
"U.S.",
"companies",
"improve",
"existing",
"products",
"rather",
"than",
"always",
"developing",
"new",
"ones",
".",
"''",
"Seed",
"for",
"Jail",
"Solution",
"Fails",
"to",
"Take",
"Root",
"IT",
"'S",
"A",
"TWO",
"BIRDS",
"with",
"one",
"stone",
"deal",
":",
"Eggers",
"Group",
"architects",
"propose",
"using",
"grain",
"elevators",
"to",
"house",
"prisoners",
".",
"It",
"would",
"ease",
"jail",
"overcrowding",
"while",
"preserving",
"historic",
"structures",
",",
"the",
"company",
"says",
".",
"But",
"New",
"York",
"state",
",",
"which",
"is",
"seeking",
"solutions",
"to",
"its",
"prison",
"cell",
"shortage",
",",
"says",
"``",
"no",
".",
"''",
"Grain",
"elevators",
"built",
"in",
"the",
"1920s",
"and",
"'30s",
"have",
"six-inch",
"concrete",
"walls",
"and",
"a",
"tubular",
"shape",
"that",
"would",
"easily",
"contain",
"semicircular",
"cells",
"with",
"a",
"control",
"point",
"in",
"the",
"middle",
",",
"the",
"New",
"York",
"firm",
"says",
".",
"Many",
"are",
"far",
"enough",
"from",
"residential",
"areas",
"to",
"pass",
"public",
"muster",
",",
"yet",
"close",
"enough",
"to",
"permit",
"family",
"visits",
".",
"Besides",
",",
"Eggers",
"says",
",",
"grain",
"elevators",
"are",
"worth",
"preserving",
"for",
"aesthetic",
"reasons",
"--",
"one",
"famed",
"architect",
"compared",
"them",
"to",
"the",
"pyramids",
"of",
"Egypt",
".",
"A",
"number",
"of",
"cities",
"--",
"including",
"Minneapolis",
",",
"Philadelphia",
"and",
"Houston",
"--",
"have",
"vacant",
"grain",
"elevators",
",",
"Eggers",
"says",
".",
"A",
"medium-sized",
"one",
"in",
"Brooklyn",
",",
"it",
"says",
",",
"could",
"be",
"altered",
"to",
"house",
"up",
"to",
"1,000",
"inmates",
"at",
"a",
"lower",
"cost",
"than",
"building",
"a",
"new",
"prison",
"in",
"upstate",
"New",
"York",
".",
"A",
"spokesman",
"for",
"the",
"state",
",",
"however",
",",
"calls",
"the",
"idea",
"``",
"not",
"effective",
"or",
"cost",
"efficient",
"."
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[
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".",
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",",
"the",
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",",
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",",
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"analysts",
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"defense-electronics",
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".",
"``",
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".",
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",",
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",",
"an",
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".",
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",",
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"the",
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".",
"''",
"Unisys",
",",
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",",
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"30",
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".",
"On",
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",",
"the",
"Blue",
"Bell",
",",
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",",
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"$",
"230",
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".",
"That",
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".",
"Unisys",
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"150",
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",",
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".",
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"the",
"government",
"because",
"of",
"its",
"involvement",
"in",
"the",
"defense-procurement",
"scandal",
".",
"Unisys",
"also",
"noted",
"that",
"it",
"paid",
"$",
"78.8",
"million",
"in",
"taxes",
"during",
"the",
"quarter",
",",
"even",
"though",
"tax",
"payments",
"normally",
"would",
"be",
"minimal",
"in",
"a",
"quarter",
"that",
"produced",
"such",
"a",
"big",
"loss",
".",
"The",
"tax",
"payments",
"will",
"leave",
"Unisys",
"with",
"$",
"225",
"million",
"in",
"loss",
"carry-forwards",
"that",
"will",
"cut",
"tax",
"payments",
"in",
"future",
"quarters",
".",
"In",
"addition",
",",
"Unisys",
"said",
"it",
"reduced",
"computer",
"inventories",
"a",
"further",
"$",
"100",
"million",
"during",
"the",
"quarter",
",",
"leaving",
"it",
"within",
"$",
"100",
"million",
"of",
"its",
"goal",
"of",
"a",
"reduction",
"of",
"$",
"500",
"million",
"by",
"the",
"end",
"of",
"the",
"year",
".",
"Still",
",",
"Unisys",
"said",
"its",
"European",
"business",
"was",
"weak",
"during",
"the",
"quarter",
",",
"a",
"worrisome",
"sign",
"given",
"that",
"the",
"company",
"has",
"relied",
"on",
"solid",
"results",
"overseas",
"to",
"overcome",
"weakness",
"in",
"the",
"U.S.",
"over",
"the",
"past",
"several",
"quarters",
".",
"The",
"company",
"also",
"reported",
"slower",
"growth",
"in",
"another",
"important",
"business",
":",
"systems",
"that",
"use",
"the",
"Unix",
"operating",
"system",
".",
"That",
"would",
"be",
"a",
"huge",
"problem",
"if",
"it",
"were",
"to",
"continue",
",",
"because",
"Unisys",
"is",
"betting",
"its",
"business",
"on",
"the",
"assumption",
"that",
"customers",
"want",
"to",
"move",
"away",
"from",
"using",
"operating",
"systems",
"that",
"run",
"on",
"only",
"one",
"manufacturer",
"'s",
"equipment",
"and",
"toward",
"systems",
"--",
"mainly",
"Unix",
"--",
"that",
"work",
"on",
"almost",
"anyone",
"'s",
"machines",
".",
"In",
"addition",
",",
"Unisys",
"must",
"deal",
"with",
"its",
"increasingly",
"oppressive",
"debt",
"load",
".",
"Debt",
"has",
"risen",
"to",
"around",
"$",
"4",
"billion",
",",
"or",
"about",
"50",
"%",
"of",
"total",
"capitalization",
".",
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"means",
"Unisys",
"must",
"pay",
"about",
"$",
"100",
"million",
"in",
"interest",
"every",
"quarter",
",",
"on",
"top",
"of",
"$",
"27",
"million",
"in",
"dividends",
"on",
"preferred",
"stock",
".",
"Jim",
"Unruh",
",",
"Unisys",
"'s",
"president",
",",
"said",
"he",
"is",
"approaching",
"next",
"year",
"with",
"caution",
".",
"He",
"said",
"the",
"strength",
"of",
"the",
"world-wide",
"economy",
"is",
"suspect",
",",
"and",
"does",
"n't",
"see",
"much",
"revenue",
"growth",
"in",
"the",
"cards",
".",
"He",
"also",
"said",
"that",
"the",
"price",
"wars",
"flaring",
"up",
"in",
"parts",
"of",
"the",
"computer",
"industry",
"will",
"continue",
"through",
"next",
"year",
".",
"He",
"said",
"the",
"move",
"toward",
"standard",
"operating",
"systems",
"means",
"customers",
"are",
"n't",
"locked",
"into",
"buying",
"from",
"their",
"traditional",
"computer",
"supplier",
"and",
"can",
"force",
"prices",
"down",
".",
"That",
",",
"he",
"said",
",",
"is",
"why",
"Unisys",
"is",
"overhauling",
"its",
"whole",
"business",
":",
"It",
"needs",
"to",
"prepare",
"for",
"a",
"world",
"in",
"which",
"profit",
"margins",
"will",
"be",
"lower",
"than",
"computer",
"companies",
"have",
"been",
"used",
"to",
".",
"``",
"We",
"'ve",
"approached",
"this",
"not",
"as",
"a",
"response",
"to",
"a",
"temporary",
"condition",
"in",
"the",
"industry",
"but",
"as",
"a",
"fundamental",
"change",
"the",
"industry",
"is",
"going",
"through",
",",
"''",
"Mr.",
"Unruh",
"said",
".",
"``",
"The",
"information-systems",
"industry",
"is",
"still",
"going",
"to",
"be",
"a",
"high-growth",
"business",
",",
"and",
"we",
"'re",
"confident",
"that",
"we",
"have",
"tremendous",
"assets",
"as",
"a",
"company",
".",
"But",
"we",
"do",
"n't",
"minimize",
"the",
"challenges",
"of",
"the",
"near",
"term",
".",
"''",
"Securities",
"analysts",
"were",
"even",
"more",
"cautious",
",",
"having",
"been",
"burned",
"repeatedly",
"on",
"Unisys",
"this",
"year",
".",
"Some",
"had",
"predicted",
"earnings",
"of",
"more",
"than",
"$",
"4",
"a",
"share",
"for",
"this",
"year",
",",
"up",
"from",
"last",
"year",
"'s",
"fully",
"diluted",
"$",
"3.27",
"a",
"share",
"on",
"earnings",
"of",
"$",
"680.6",
"million",
".",
"But",
"the",
"company",
"said",
"Friday",
"that",
"it",
"had",
"losses",
"of",
"$",
"673.3",
"million",
"through",
"the",
"first",
"nine",
"months",
",",
"compared",
"with",
"earnings",
"a",
"year",
"earlier",
"of",
"$",
"382.2",
"million",
",",
"or",
"$",
"2.22",
"a",
"share",
"fully",
"diluted",
",",
"as",
"revenue",
"inched",
"up",
"1.4",
"%",
"to",
"$",
"7.13",
"billion",
"from",
"$",
"7.03",
"billion",
".",
"And",
"Unisys",
"is",
"expected",
"to",
"do",
"little",
"better",
"than",
"break",
"even",
"in",
"the",
"fourth",
"quarter",
".",
"So",
"Steve",
"Milunovich",
"at",
"First",
"Boston",
"said",
"he",
"is",
"cutting",
"his",
"earnings",
"estimate",
"for",
"next",
"year",
"to",
"$",
"2",
"a",
"share",
"from",
"$",
"3",
".",
"``",
"I",
"was",
"feeling",
"like",
"I",
"was",
"too",
"high",
"to",
"begin",
"with",
",",
"''",
"he",
"said",
".",
"Mr.",
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"&",
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"remain",
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"$",
"1",
"a",
"share",
"for",
"next",
"year",
"but",
"said",
"he",
"wonders",
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"even",
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"low",
"target",
"is",
"at",
"risk",
".",
"``",
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"Friday",
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[
"The",
"Berlin",
"Wall",
"still",
"stands",
".",
"But",
"the",
"man",
"who",
"built",
"it",
"has",
"fallen",
".",
"East",
"Germany",
"yesterday",
"removed",
"Erich",
"Honecker",
",",
"one",
"of",
"the",
"staunchest",
"holdouts",
"against",
"the",
"reform",
"rumbling",
"through",
"the",
"Communist",
"world",
",",
"in",
"an",
"effort",
"to",
"win",
"back",
"the",
"confidence",
"of",
"its",
"increasingly",
"rebellious",
"citizens",
".",
"But",
"while",
"it",
"was",
"a",
"move",
"that",
"stunned",
"the",
"East",
"bloc",
",",
"it",
"hardly",
"ushers",
"in",
"an",
"era",
"of",
"reform",
"--",
"at",
"least",
"anytime",
"soon",
".",
"For",
"the",
"Politburo",
"replaced",
"Mr.",
"Honecker",
",",
"who",
"had",
"led",
"East",
"Germany",
"for",
"18",
"years",
"and",
"before",
"that",
"headed",
"its",
"security",
"apparatus",
",",
"with",
"a",
"man",
"cut",
"of",
"the",
"same",
"cloth",
":",
"Egon",
"Krenz",
",",
"the",
"most",
"recent",
"internal-security",
"chief",
"and",
"a",
"longtime",
"Honecker",
"protege",
".",
"East",
"Germany",
",",
"it",
"is",
"clear",
",",
"is",
"no",
"Poland",
",",
"where",
"the",
"Communist",
"Party",
"now",
"shares",
"power",
"with",
"the",
"democratically",
"elected",
"Solidarity",
"union",
".",
"Nor",
"is",
"it",
"a",
"Hungary",
",",
"where",
"yesterday",
"the",
"parliament",
"approved",
"constitutional",
"changes",
"meant",
"to",
"help",
"turn",
"the",
"Communist",
"nation",
"into",
"a",
"multiparty",
"democracy",
".",
"Still",
",",
"any",
"change",
"in",
"East",
"Germany",
"has",
"enormous",
"implications",
",",
"for",
"both",
"East",
"and",
"West",
".",
"It",
"raises",
"the",
"long-cherished",
"hopes",
"of",
"many",
"Germans",
"for",
"reunification",
"--",
"a",
"prospect",
"that",
"almost",
"equally",
"alarms",
"political",
"leaders",
"in",
"Moscow",
",",
"Washington",
"and",
"Western",
"Europe",
".",
"Mr.",
"Krenz",
",",
"52",
",",
"was",
"named",
"the",
"new",
"party",
"chief",
"just",
"minutes",
"after",
"the",
"Party",
"'s",
"163-member",
"Central",
"Committee",
"convened",
"in",
"East",
"Berlin",
".",
"Although",
"the",
"East",
"German",
"news",
"agency",
"ADN",
"claimed",
"Mr.",
"Honecker",
"had",
"asked",
"to",
"be",
"relieved",
"of",
"his",
"duties",
"for",
"``",
"health",
"reasons",
",",
"''",
"West",
"German",
"government",
"sources",
"said",
"the",
"26-man",
"Politburo",
"had",
"asked",
"for",
"his",
"resignation",
"at",
"a",
"separate",
"meeting",
"late",
"Tuesday",
".",
"(",
"Mr.",
"Honecker",
"was",
"twice",
"hospitalized",
"this",
"summer",
"for",
"a",
"gall",
"bladder",
"ailment",
"and",
"his",
"physical",
"condition",
"has",
"been",
"the",
"subject",
"of",
"intense",
"speculation",
"in",
"the",
"Western",
"media",
".",
")",
"ADN",
"said",
"Mr.",
"Honecker",
",",
"a",
"hard-line",
"Stalinist",
"who",
"in",
"1961",
"supervised",
"the",
"construction",
"of",
"the",
"Berlin",
"Wall",
",",
"also",
"was",
"relieved",
"of",
"his",
"title",
"as",
"head",
"of",
"state",
"and",
"his",
"position",
"as",
"chief",
"of",
"the",
"military",
".",
"Mr.",
"Krenz",
"is",
"expected",
"to",
"be",
"formally",
"named",
"to",
"all",
"three",
"positions",
"once",
"the",
"nation",
"'s",
"parliament",
"convenes",
"later",
"this",
"week",
".",
"Mr.",
"Honecker",
"'s",
"ignoble",
"fall",
"culminates",
"nearly",
"two",
"decades",
"of",
"iron-handed",
"leadership",
"during",
"which",
"Mr.",
"Honecker",
",",
"now",
"77",
"years",
"old",
",",
"built",
"East",
"Germany",
"into",
"the",
"most",
"economically",
"advanced",
"nation",
"in",
"the",
"Soviet",
"bloc",
".",
"His",
"grip",
"on",
"power",
"unraveled",
"this",
"summer",
"as",
"thousands",
"of",
"his",
"countrymen",
",",
"dissatisfied",
"by",
"the",
"harshness",
"of",
"his",
"rule",
",",
"fled",
"to",
"the",
"West",
".",
"Thousands",
"more",
"have",
"taken",
"to",
"the",
"streets",
"in",
"the",
"last",
"month",
"in",
"East",
"Germany",
"'s",
"largest",
"wave",
"of",
"domestic",
"unrest",
"since",
"a",
"workers",
"'",
"uprising",
"in",
"1953",
".",
"In",
"Washington",
",",
"the",
"Bush",
"administration",
"took",
"a",
"characteristically",
"cautious",
"and",
"skeptical",
"view",
"of",
"the",
"leadership",
"change",
".",
"The",
"official",
"line",
"was",
"to",
"offer",
"warmer",
"ties",
"to",
"Mr.",
"Krenz",
",",
"provided",
"he",
"is",
"willing",
"to",
"institute",
"reforms",
".",
"But",
"U.S.",
"officials",
"have",
"strong",
"doubts",
"that",
"he",
"is",
"a",
"reformer",
".",
"President",
"Bush",
"told",
"reporters",
":",
"``",
"Whether",
"that",
"-LCB-",
"the",
"leadership",
"change",
"-RCB-",
"reflects",
"a",
"change",
"in",
"East-West",
"relations",
",",
"I",
"do",
"n't",
"think",
"so",
".",
"Because",
"Mr.",
"Krenz",
"has",
"been",
"very",
"much",
"in",
"accord",
"with",
"the",
"policies",
"of",
"Honecker",
".",
"''",
"One",
"top",
"U.S.",
"expert",
"on",
"East",
"Germany",
"added",
":",
"``",
"There",
"is",
"no",
"clear-cut",
"champion",
"of",
"reform",
",",
"that",
"we",
"know",
"of",
",",
"in",
"the",
"East",
"German",
"leadership",
".",
"''",
"Indeed",
",",
"Mr.",
"Krenz",
"said",
"on",
"East",
"German",
"television",
"last",
"night",
"that",
"there",
"will",
"be",
"no",
"sharing",
"of",
"power",
"with",
"pro-democracy",
"groups",
".",
"He",
"said",
",",
"while",
"dialogue",
"is",
"important",
",",
"enough",
"forums",
"already",
"exist",
"``",
"in",
"which",
"different",
"interests",
"''",
"can",
"express",
"themselves",
".",
"The",
"removal",
"of",
"Mr.",
"Honecker",
"was",
"apparently",
"the",
"result",
"of",
"bitter",
"infighting",
"within",
"the",
"top",
"ranks",
"of",
"the",
"Communist",
"party",
".",
"According",
"to",
"West",
"German",
"government",
"sources",
",",
"Mr.",
"Honecker",
"and",
"several",
"senior",
"Politburo",
"members",
"fought",
"over",
"the",
"last",
"week",
"to",
"delay",
"any",
"decisions",
"about",
"a",
"leadership",
"change",
".",
"But",
",",
"with",
"public",
"demonstrations",
"in",
"the",
"country",
"growing",
"in",
"size",
"and",
"intensity",
",",
"Mr.",
"Honecker",
"and",
"several",
"key",
"allies",
"lost",
"out",
"in",
"this",
"battle",
",",
"officials",
"say",
".",
"Those",
"allies",
"included",
"Politburo",
"members",
"Guenter",
"Mittag",
",",
"who",
"has",
"long",
"headed",
"economic",
"affairs",
",",
"and",
"Joachim",
"Hermann",
",",
"chief",
"of",
"information",
"policy",
".",
"Both",
"men",
"were",
"also",
"relieved",
"of",
"their",
"duties",
"yesterday",
".",
"Although",
"other",
"resignations",
"may",
"follow",
",",
"it",
"'s",
"still",
"not",
"clear",
"to",
"what",
"extent",
"the",
"change",
"in",
"party",
"personnel",
"will",
"alter",
"the",
"government",
"'s",
"resistance",
"to",
"fundamental",
"change",
".",
"Clearly",
",",
"the",
"central",
"figure",
"in",
"this",
"process",
"is",
"Egon",
"Krenz",
".",
"Born",
"in",
"1937",
"in",
"a",
"Baltic",
"Sea",
"town",
"now",
"part",
"of",
"Poland",
",",
"he",
"was",
"eight",
"years",
"old",
"when",
"World",
"War",
"II",
"ended",
".",
"Like",
"West",
"German",
"Chancellor",
"Helmut",
"Kohl",
",",
"he",
"represents",
"the",
"postwar",
"generation",
"that",
"has",
"grown",
"up",
"during",
"Germany",
"'s",
"division",
".",
"Since",
"joining",
"the",
"Politburo",
"in",
"1983",
"as",
"its",
"youngest",
"member",
",",
"Mr.",
"Krenz",
"had",
"acquired",
"the",
"nickname",
"``",
"crown",
"prince",
",",
"''",
"a",
"reference",
"to",
"the",
"widely",
"held",
"view",
"that",
"he",
"was",
"the",
"hand-picked",
"successor",
"to",
"Mr.",
"Honecker",
".",
"In",
"fact",
",",
"the",
"two",
"men",
"have",
"had",
"strikingly",
"similar",
"career",
"paths",
",",
"both",
"having",
"served",
"as",
"chief",
"of",
"internal",
"security",
"before",
"their",
"rise",
"to",
"the",
"top",
"party",
"position",
".",
"Moreover",
",",
"both",
"men",
"have",
"hewn",
"to",
"a",
"similar",
"hard-line",
"philosophy",
".",
"Notably",
",",
"one",
"of",
"Mr.",
"Krenz",
"'s",
"few",
"official",
"visits",
"overseas",
"came",
"a",
"few",
"months",
"ago",
",",
"when",
"he",
"visited",
"China",
"after",
"the",
"massacre",
"in",
"Beijing",
".",
"He",
"later",
"defended",
"the",
"Chinese",
"government",
"'s",
"response",
"during",
"a",
"separate",
"visit",
"to",
"West",
"Germany",
".",
"East",
"German",
"Protestantism",
"in",
"particular",
"fears",
"Mr.",
"Krenz",
",",
"in",
"part",
"because",
"of",
"an",
"incident",
"in",
"January",
"1988",
"when",
"he",
"was",
"believed",
"to",
"have",
"ordered",
"the",
"arrest",
"of",
"hundreds",
"of",
"dissidents",
"who",
"had",
"sought",
"refuge",
"in",
"the",
"Church",
".",
"However",
",",
"Mr.",
"Krenz",
"also",
"has",
"a",
"reputation",
"for",
"being",
"politically",
"savvy",
".",
"His",
"shrewd",
"ability",
"to",
"read",
"the",
"shifting",
"popular",
"mood",
"in",
"East",
"Germany",
"is",
"best",
"illustrated",
"by",
"his",
"apparent",
"break",
"with",
"his",
"old",
"mentor",
",",
"Mr.",
"Honecker",
".",
"Indeed",
",",
"according",
"to",
"West",
"German",
"government",
"sources",
",",
"he",
"was",
"one",
"of",
"the",
"leaders",
"in",
"the",
"power",
"struggle",
"that",
"toppled",
"Mr.",
"Honecker",
".",
"In",
"recent",
"days",
",",
"Mr.",
"Krenz",
"has",
"sought",
"to",
"project",
"a",
"kinder",
"image",
".",
"According",
"to",
"a",
"report",
"widely",
"circulating",
"in",
"East",
"Berlin",
",",
"it",
"was",
"Mr.",
"Krenz",
"who",
"ordered",
"police",
"to",
"stop",
"using",
"excessive",
"force",
"against",
"demonstrators",
"in",
"Leipzig",
".",
"``",
"He",
"does",
"n't",
"want",
"to",
"have",
"the",
"image",
"of",
"the",
"gun",
"man",
",",
"''",
"says",
"Fred",
"Oldenburg",
",",
"an",
"expert",
"at",
"the",
"Bonn-sponsored",
"Institute",
"of",
"East",
"European",
"and",
"International",
"Studies",
"in",
"Cologne",
".",
"``",
"He",
"'s",
"not",
"a",
"reformer",
"--",
"he",
"wants",
"to",
"have",
"the",
"image",
"of",
"a",
"reformer",
".",
"''",
"As",
"part",
"of",
"his",
"image",
"polishing",
",",
"Mr.",
"Krenz",
"is",
"expected",
"to",
"take",
"modest",
"steps",
"toward",
"reform",
"to",
"rebuild",
"confidence",
"among",
"the",
"people",
"and",
"reassert",
"the",
"party",
"'s",
"authority",
".",
"Besides",
"sacking",
"other",
"senior",
"Politburo",
"officials",
"who",
"allied",
"themselves",
"with",
"Mr.",
"Honecker",
",",
"Mr.",
"Krenz",
"could",
"loosen",
"controls",
"on",
"the",
"news",
"media",
",",
"free",
"up",
"travel",
"restrictions",
",",
"and",
"establish",
"a",
"dialogue",
"with",
"various",
"dissident",
"groups",
".",
"But",
"will",
"it",
"be",
"enough",
"?",
"West",
"German",
"government",
"officials",
"and",
"Western",
"analysts",
"are",
"doubtful",
".",
"``",
"He",
"does",
"n't",
"signify",
"what",
"people",
"want",
",",
"so",
"the",
"unrest",
"will",
"go",
"on",
",",
"''",
"Mr.",
"Oldenburg",
"predicts",
".",
"At",
"the",
"same",
"time",
",",
"the",
"expectations",
"of",
"the",
"East",
"German",
"people",
"are",
"great",
"and",
"will",
"continue",
"to",
"grow",
".",
"Says",
"one",
"West",
"German",
"official",
":",
"``",
"What",
"'s",
"necessary",
"now",
"is",
"the",
"process",
"of",
"democratization",
".",
"Not",
"just",
"that",
"people",
"are",
"being",
"heard",
"but",
"that",
"their",
"interests",
"are",
"being",
"taken",
"seriously",
".",
"''",
"Chancellor",
"Kohl",
",",
"meanwhile",
",",
"has",
"invited",
"Mr.",
"Krenz",
"to",
"open",
"discussions",
"with",
"Bonn",
"on",
"a",
"wide",
"range",
"of",
"subjects",
".",
"Reports",
"in",
"the",
"West",
"German",
"press",
",",
"citing",
"sources",
"in",
"East",
"Germany",
",",
"suggest",
"Mr.",
"Krenz",
"may",
"serve",
"only",
"as",
"a",
"bridge",
"between",
"Mr.",
"Honecker",
"and",
"a",
"genuine",
"reform",
"leader",
".",
"Adding",
"to",
"that",
"speculation",
"is",
"Mr.",
"Krenz",
"'s",
"reputation",
"as",
"a",
"heavy",
"drinker",
",",
"who",
"is",
"said",
"to",
"also",
"suffer",
"from",
"diabetes",
".",
"``",
"This",
"is",
"a",
"dynamic",
"process",
"and",
"we",
"'re",
"experiencing",
"the",
"first",
"step",
",",
"''",
"the",
"Bonn",
"official",
"adds",
".",
"The",
"selection",
"of",
"Mr.",
"Krenz",
"may",
"also",
"disappoint",
"Moscow",
".",
"Soviet",
"leader",
"Mikhail",
"Gorbachev",
"has",
"pressed",
"hard",
"for",
"a",
"change",
"in",
"East",
"Germany",
"'s",
"rigid",
"stance",
".",
"Two",
"reform-minded",
"party",
"leaders",
"favored",
"by",
"Moscow",
"as",
"possible",
"successors",
"to",
"Mr.",
"Honecker",
",",
"Dresden",
"party",
"secretary",
"Hans",
"Modrow",
"and",
"Politburo",
"member",
"Guenter",
"Schabowski",
",",
"were",
"passed",
"over",
".",
"If",
"Mr.",
"Krenz",
"sticks",
"to",
"rigid",
"policies",
"the",
"pressure",
"from",
"the",
"Soviet",
"Union",
"could",
"intensify",
".",
"In",
"Moscow",
",",
"Mr.",
"Gorbachev",
"sent",
"Mr.",
"Krenz",
"a",
"congratulatory",
"telegram",
"that",
"appeared",
"to",
"urge",
"the",
"new",
"leadership",
"to",
"heed",
"growing",
"calls",
"for",
"change",
".",
"According",
"to",
"the",
"Soviet",
"news",
"agency",
"Tass",
",",
"``",
"Gorbachev",
"expressed",
"the",
"conviction",
"that",
"the",
"leadership",
"of",
"the",
"Socialist",
"Unity",
"Party",
"of",
"-LCB-",
"East",
"-RCB-",
"Germany",
",",
"being",
"sensitive",
"to",
"the",
"demands",
"of",
"the",
"time",
",",
"...",
"will",
"find",
"solutions",
"to",
"complicated",
"problems",
"the",
"GDR",
"-LCB-",
"German",
"Democratic",
"Republic",
"-RCB-",
"encountered",
".",
"''",
"A",
"force",
"of",
"younger",
"pro-Gorbachev",
"members",
"in",
"the",
"East",
"German",
"bureaucracy",
"has",
"for",
"some",
"time",
"been",
"pushing",
"for",
"relaxation",
"within",
"their",
"country",
".",
"The",
"older",
"generation",
"has",
"been",
"torn",
"between",
"a",
"fear",
"of",
"tampering",
"with",
"the",
"status",
"quo",
"and",
"a",
"fear",
"of",
"what",
"might",
"happen",
"if",
"they",
"did",
"n't",
".",
"From",
"the",
"perspective",
"of",
"East",
"Germany",
"'s",
"old",
"guard",
",",
"reforms",
"that",
"smack",
"of",
"capitalism",
"and",
"Western-style",
"democracy",
"could",
"eliminate",
"their",
"country",
"'s",
"reason",
"for",
"being",
".",
"Unlike",
"the",
"other",
"nations",
"of",
"the",
"bloc",
",",
"East",
"Germany",
"is",
"a",
"creature",
"of",
"the",
"Cold",
"War",
".",
"Erasing",
"the",
"differences",
"still",
"dividing",
"Europe",
",",
"and",
"the",
"vast",
"international",
"reordering",
"that",
"implies",
",",
"wo",
"n't",
"endanger",
"the",
"statehood",
"of",
"a",
"Poland",
"or",
"a",
"Hungary",
".",
"But",
"it",
"could",
"ultimately",
"lead",
"to",
"German",
"reunification",
"and",
"the",
"disappearance",
"of",
"East",
"Germany",
"from",
"the",
"map",
".",
"Which",
"is",
"what",
"the",
"Old",
"Guard",
"fears",
".",
"``",
"I",
"'m",
"sure",
"they",
"'ll",
"formulate",
"a",
"reform",
"that",
"will",
"be",
"a",
"recipe",
"for",
"the",
"GDR",
"'s",
"future",
"as",
"a",
"separately",
"identifiable",
"state",
",",
"''",
"says",
"Michael",
"Simmons",
",",
"a",
"British",
"journalist",
"whose",
"book",
"on",
"East",
"Germany",
",",
"entitled",
"``",
"The",
"Unloved",
"Country",
",",
"''",
"was",
"published",
"this",
"month",
".",
"Up",
"to",
"now",
",",
"that",
"recipe",
"has",
"consisted",
"of",
"a",
"dogged",
"effort",
"by",
"former",
"leader",
"Walter",
"Ulbricht",
"to",
"establish",
"the",
"country",
"'s",
"international",
"legitimacy",
",",
"followed",
"by",
"Mr.",
"Honecker",
"'s",
"campaign",
"to",
"build",
"the",
"East",
"bloc",
"'s",
"only",
"successful",
"Stalinist",
"economy",
"into",
"a",
"consumer",
"paradise",
".",
"Neither",
"man",
"achieved",
"perfection",
".",
"Early",
"in",
"1987",
",",
"Mr.",
"Honecker",
"and",
"his",
"team",
"stopped",
"paying",
"thin",
"compliments",
"to",
"Mr.",
"Gorbachev",
"and",
"joined",
"with",
"Romania",
"in",
"rejecting",
"any",
"necessity",
"for",
"adjustments",
"in",
"their",
"systems",
".",
"The",
"less-self-confident",
"Czechoslovaks",
"and",
"Bulgarians",
",",
"in",
"contrast",
",",
"declared",
"their",
"intentions",
"to",
"reform",
",",
"while",
"doing",
"nothing",
"concrete",
"about",
"it",
".",
"The",
"East",
"German",
"media",
"soon",
"began",
"presenting",
"Mr.",
"Gorbachev",
"'s",
"speeches",
"only",
"as",
"sketchy",
"summaries",
",",
"and",
"giving",
"space",
"to",
"his",
"opponents",
".",
"By",
"late",
"1988",
",",
"they",
"were",
"banning",
"Soviet",
"publications",
".",
"The",
"country",
"abandoned",
"its",
"former",
"devotion",
"to",
"socialist",
"unity",
"and",
"took",
"to",
"insisting",
"instead",
"that",
"each",
"country",
"in",
"the",
"bloc",
"ought",
"to",
"travel",
"its",
"own",
"road",
".",
"Mr.",
"Honecker",
"spoke",
"of",
"``",
"generally",
"valid",
"objective",
"laws",
"of",
"socialism",
"''",
"and",
"left",
"no",
"room",
"for",
"debate",
".",
"With",
"this",
"year",
"'s",
"dislocations",
"in",
"China",
"and",
"the",
"Soviet",
"Union",
",",
"and",
"the",
"drive",
"to",
"democracy",
"in",
"Poland",
"and",
"Hungary",
",",
"the",
"East",
"German",
"leadership",
"grew",
"still",
"more",
"defensive",
".",
"Politburo",
"member",
"Joachim",
"Herrman",
"confessed",
"to",
"a",
"``",
"grave",
"concern",
"''",
"over",
"Hungarian",
"democracy",
".",
"``",
"Under",
"the",
"banner",
"that",
"proclaims",
"the",
"`",
"renewal",
"of",
"socialism",
",",
"'",
"''",
"he",
"said",
",",
"``",
"forces",
"are",
"at",
"work",
"that",
"are",
"striving",
"to",
"eliminate",
"socialism",
".",
"''",
"Some",
"loyal",
"voices",
",",
"in",
"and",
"out",
"of",
"the",
"East",
"German",
"Communist",
"party",
",",
"saw",
"the",
"nation",
"'s",
"unrest",
"coming",
".",
"The",
"first",
"signs",
"were",
"economic",
".",
"Despite",
"heavily",
"subsidized",
"consumer",
"industries",
",",
"East",
"Germans",
"have",
"for",
"years",
"watched",
"the",
"West",
"pull",
"farther",
"out",
"ahead",
".",
"In",
"1988",
",",
"for",
"the",
"first",
"time",
",",
"economic",
"growth",
"came",
"to",
"a",
"dead",
"stop",
".",
"Gingerly",
",",
"some",
"economists",
"began",
"to",
"blame",
"central",
"planning",
".",
"Some",
"writers",
"in",
"theoretical",
"journals",
"even",
"raised",
"the",
"notion",
"of",
"introducing",
"democracy",
",",
"at",
"least",
"in",
"the",
"workplace",
".",
"By",
"summer",
",",
"an",
"independent",
"reform",
"movement",
"was",
"saying",
"out",
"loud",
"what",
"it",
"had",
"only",
"whispered",
"before",
".",
"But",
"they",
"are",
"stalwart",
"socialists",
".",
"Their",
"proclaimed",
"purpose",
"is",
"to",
"cleanse",
"East",
"Germany",
"of",
"its",
"Stalinist",
"muck",
",",
"not",
"to",
"merge",
"with",
"the",
"West",
".",
"One",
"of",
"their",
"pastors",
"has",
"envisioned",
"a",
"``",
"new",
"utopia",
"''",
"of",
"``",
"creative",
"socialism",
".",
"''",
"Meanwhile",
",",
"the",
"man",
"Mr.",
"Krenz",
"replaces",
"has",
"left",
"an",
"indelible",
"mark",
"on",
"East",
"German",
"society",
".",
"Imprisoned",
"by",
"the",
"Nazis",
"during",
"World",
"War",
"II",
"for",
"his",
"political",
"beliefs",
",",
"Mr.",
"Honecker",
"typified",
"the",
"postwar",
"generation",
"of",
"committed",
"Communist",
"leaders",
"in",
"Eastern",
"Europe",
"who",
"took",
"their",
"cues",
"from",
"Moscow",
".",
"He",
"was",
"a",
"``",
"socialist",
"warrior",
"''",
"who",
"felt",
"rankled",
"by",
"West",
"Germany",
"'s",
"enormous",
"postwar",
"prosperity",
"and",
"the",
"Bonn",
"government",
"'s",
"steadfast",
"refusal",
"to",
"recognize",
"the",
"legitimacy",
"of",
"his",
"state",
".",
"Finally",
",",
"during",
"his",
"first",
"and",
"only",
"state",
"visit",
"to",
"Bonn",
"two",
"years",
"ago",
",",
"he",
"won",
"some",
"measure",
"of",
"the",
"recognition",
"he",
"had",
"long",
"sought",
".",
"But",
"ultimately",
"he",
"was",
"undone",
"by",
"forces",
"unleashed",
"by",
"his",
"own",
"comrade",
",",
"Mr.",
"Gorbachev",
".",
"Mr.",
"Honecker",
"'s",
"removal",
"``",
"was",
"bound",
"to",
"happen",
",",
"''",
"says",
"one",
"aide",
"to",
"Chancellor",
"Kohl",
".",
"``",
"It",
"was",
"only",
"a",
"matter",
"of",
"time",
".",
"''",
"The",
"European",
"Community",
"Commission",
"increased",
"its",
"forecast",
"for",
"economic",
"growth",
"in",
"the",
"EC",
"in",
"1989",
"to",
"3.5",
"%",
",",
"slightly",
"higher",
"than",
"its",
"June",
"projection",
"of",
"3.25",
"%",
".",
"In",
"its",
"annual",
"economic",
"report",
"for",
"1989-1990",
",",
"the",
"commission",
"also",
"projected",
"1990",
"gross",
"domestic",
"product",
"growth",
"for",
"the",
"12",
"EC",
"members",
"at",
"3",
"%",
".",
"EC",
"inflation",
"was",
"seen",
"at",
"4.8",
"%",
"in",
"1989",
",",
"higher",
"than",
"1988",
"'s",
"3.6",
"%",
"price",
"rise",
".",
"However",
",",
"inflation",
"for",
"1990",
"was",
"seen",
"slowing",
"to",
"4.5",
"%",
".",
"Leading",
"EC",
"growth",
"forecasts",
"in",
"1989",
"was",
"Ireland",
",",
"seen",
"growing",
"5",
"%",
"at",
"constant",
"prices",
".",
"Slower",
"growth",
"countries",
"included",
"Greece",
",",
"at",
"2.5",
"%",
",",
"the",
"U.K.",
",",
"at",
"2.25",
"%",
",",
"and",
"Denmark",
",",
"at",
"1.75",
"%",
".",
"Inflation",
"is",
"expected",
"to",
"be",
"highest",
"in",
"Greece",
",",
"where",
"it",
"is",
"projected",
"at",
"14.25",
"%",
",",
"and",
"Portugal",
",",
"at",
"13",
"%",
".",
"At",
"the",
"other",
"end",
"of",
"the",
"spectrum",
",",
"West",
"German",
"inflation",
"was",
"forecast",
"at",
"3",
"%",
"in",
"1989",
"and",
"2.75",
"%",
"in",
"1990",
".",
"Nestle",
"Korea",
"Ltd.",
"opened",
"a",
"coffee",
"and",
"non-dairy-creamer",
"plant",
"in",
"Chongju",
",",
"South",
"Korea",
".",
"An",
"official",
"at",
"Nestle",
"Korea",
",",
"a",
"50-50",
"joint",
"venture",
"between",
"Nestle",
"S.A.",
"and",
"the",
"Doosan",
"Group",
",",
"said",
"the",
"new",
"facility",
"will",
"manufacture",
"all",
"types",
"of",
"soluble",
",",
"roasted",
"and",
"ground",
"coffee",
",",
"coffee",
"mix",
"and",
"nondairy",
"coffee",
"creamer",
".",
"The",
"South",
"Korean",
"coffee",
"market",
",",
"consisting",
"mostly",
"of",
"instant",
"coffee",
",",
"was",
"estimated",
"at",
"about",
"100",
"billion",
"won",
"(",
"$",
"150.7",
"million",
")",
"last",
"year",
".",
"Brands",
"made",
"by",
"the",
"Kraft",
"General",
"Foods",
"unit",
"of",
"Philip",
"Morris",
"Cos.",
"had",
"about",
"95",
"%",
"of",
"the",
"market",
"share",
".",
"Nestle",
"currently",
"has",
"only",
"about",
"a",
"2",
"%",
"share",
"with",
"its",
"Taster",
"'s",
"Choice",
"coffee",
".",
"Poland",
"plans",
"to",
"start",
"negotiations",
"soon",
"on",
"purchasing",
"natural",
"gas",
"from",
"Iran",
",",
"the",
"official",
"Islamic",
"Republic",
"News",
"Agency",
"reported",
".",
"The",
"agency",
"said",
"Polish",
"Prime",
"Minister",
"Tadeusz",
"Mazowiecki",
"told",
"Iranian",
"Deputy",
"Foreign",
"Minister",
"Mahmoud",
"Vaezi",
"of",
"Poland",
"'s",
"willingess",
"to",
"purchase",
"the",
"gas",
"during",
"Mr.",
"Vaezi",
"'s",
"current",
"visit",
"to",
"Warsaw",
".",
"The",
"agency",
"did",
"n't",
"mention",
"possible",
"quantities",
"and",
"did",
"n't",
"say",
"how",
"the",
"gas",
"would",
"be",
"delivered",
".",
"A",
"Chinese",
"official",
"harshly",
"criticized",
"plans",
"to",
"close",
"a",
"British",
"naval",
"base",
"in",
"downtown",
"Hong",
"Kong",
".",
"Hong",
"Kong",
"officials",
"announced",
"last",
"week",
"that",
"the",
"base",
"will",
"be",
"relocated",
"to",
"a",
"small",
"island",
"to",
"allow",
"downtown",
"redevelopment",
".",
"But",
"Beijing",
"wants",
"to",
"use",
"the",
"base",
"for",
"the",
"People",
"'s",
"Liberation",
"Army",
"after",
"1997",
",",
"when",
"the",
"territory",
"returns",
"to",
"Chinese",
"sovereignty",
".",
"Ke",
"Zaishuo",
",",
"head",
"of",
"China",
"'s",
"delegation",
"to",
"a",
"Chinese-British",
"Liaison",
"Committee",
"on",
"Hong",
"Kong",
",",
"accused",
"Britain",
"of",
"trying",
"to",
"impose",
"a",
"fait",
"accompli",
"and",
"said",
",",
"``",
"This",
"is",
"something",
"we",
"can",
"not",
"accept",
".",
"''",
"The",
"Israeli",
"and",
"Soviet",
"national",
"airlines",
"have",
"reached",
"preliminary",
"agreement",
"for",
"launching",
"the",
"first",
"direct",
"flights",
"between",
"Tel",
"Aviv",
"and",
"Moscow",
",",
"a",
"spokesman",
"for",
"the",
"Israeli",
"airline",
",",
"El",
"Al",
",",
"said",
".",
"El",
"Al",
"director",
"Rafi",
"Har-Lev",
"and",
"top",
"officials",
"of",
"the",
"Soviet",
"Union",
"'s",
"Aeroflot",
"negotiated",
"a",
"preliminary",
"pact",
"in",
"Moscow",
"this",
"week",
",",
"the",
"spokesman",
"said",
".",
"He",
"added",
"that",
"concluding",
"the",
"deal",
"requires",
"approval",
"by",
"the",
"governments",
"of",
"both",
"countries",
",",
"which",
"have",
"never",
"had",
"direct",
"air",
"links",
".",
"The",
"chairman",
"and",
"a",
"director",
"of",
"one",
"of",
"the",
"Republic",
"of",
"Singapore",
"'s",
"leading",
"property",
"companies",
",",
"City",
"Development",
"Ltd.",
",",
"or",
"CDL",
",",
"were",
"charged",
"yesterday",
"with",
"criminal",
"breach",
"of",
"trust",
"of",
"some",
"800,000",
"Singapore",
"dollars",
"(",
"about",
"US$",
"409,000",
")",
".",
"Kwek",
"Hong",
"Png",
",",
"chairman",
"of",
"CDL",
",",
"and",
"director",
"Quek",
"Leng",
"Chye",
"were",
"arrested",
"by",
"the",
"republic",
"'s",
"Corrupt",
"Practices",
"Investigation",
"Bureau",
"Tuesday",
"night",
".",
"In",
"addition",
"to",
"abetting",
"in",
"the",
"alleged",
"criminal",
"breach",
"of",
"trust",
",",
"Kwek",
"Hong",
"Png",
"was",
"also",
"charged",
"with",
"dishonestly",
"receiving",
"S$",
"500,000",
"that",
"had",
"been",
"stolen",
".",
"Both",
"men",
"were",
"charged",
"in",
"a",
"subordinate",
"court",
"and",
"released",
"on",
"bail",
"of",
"S$",
"1",
"million",
".",
"The",
"charges",
"are",
"the",
"culmination",
"of",
"weeks",
"of",
"rumors",
"concerning",
"CDL",
"that",
"have",
"depressed",
"the",
"company",
"'s",
"share",
"price",
"and",
"to",
"a",
"lesser",
"extent",
"the",
"shares",
"of",
"all",
"companies",
"owned",
"by",
"CDL",
"'s",
"controlling",
"Quek",
"family",
",",
"brokers",
"in",
"Singapore",
"say",
".",
"The",
"Queks",
"control",
"the",
"Hong",
"Leong",
"Group",
",",
"which",
"has",
"widespread",
"interests",
"in",
"manufacturing",
",",
"property",
"and",
"finance",
"in",
"both",
"Malaysia",
"and",
"Singapore",
".",
"News",
"of",
"the",
"arrest",
"and",
"charging",
"of",
"the",
"two",
"men",
"helped",
"to",
"push",
"prices",
"on",
"the",
"Singapore",
"Stock",
"market",
"sharply",
"lower",
"in",
"early",
"trading",
"yesterday",
",",
"but",
"brokers",
"said",
"that",
"the",
"market",
"and",
"CDL",
"shares",
"recovered",
"once",
"it",
"became",
"apparent",
"the",
"charges",
"were",
"limited",
"to",
"the",
"two",
"men",
"personally",
".",
"One",
"of",
"the",
"two",
"British",
"companies",
"still",
"making",
"hard",
"toilet",
"paper",
"stopped",
"production",
"of",
"it",
".",
"British",
"Tissues",
"decided",
"to",
"do",
"away",
"with",
"its",
"hard",
"paper",
"after",
"a",
"major",
"customer",
",",
"British",
"Rail",
",",
"switched",
"to",
"softer",
"tissues",
"for",
"train",
"bathrooms",
"...",
".",
"Peasants",
"in",
"Inner",
"Mongolia",
"have",
"partly",
"dismantled",
"a",
"20-mile",
"section",
"of",
"China",
"'s",
"famed",
"Great",
"Wall",
",",
"the",
"official",
"People",
"'s",
"Daily",
"said",
".",
"The",
"paper",
"said",
"the",
"bricks",
"were",
"used",
"to",
"build",
"homes",
"and",
"furnaces",
"and",
",",
"as",
"a",
"result",
",",
"the",
"wall",
"``",
"is",
"in",
"terrible",
"shape",
"."
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[
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[
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"Renault",
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".",
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"(",
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")",
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",",
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",",
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"Robert",
"L.",
"Bernstein",
",",
"chairman",
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"House",
"Inc.",
",",
"announced",
"his",
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"he",
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"for",
"23",
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".",
"A",
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"was",
"n't",
"named",
",",
"which",
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"Mr.",
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"Jr.",
",",
"whose",
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",",
"Advance",
"Publications",
"Inc.",
",",
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"House",
".",
"Abrupt",
"departures",
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"of",
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".",
"In",
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",",
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"``",
"evolved",
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"Si",
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"the",
"decision",
"I",
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".",
"''",
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"elaborate",
",",
"other",
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"say",
",",
"``",
"It",
"just",
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"the",
"right",
"thing",
"to",
"do",
"at",
"this",
"minute",
".",
"Sometimes",
"you",
"just",
"go",
"with",
"your",
"gut",
".",
"''",
"Mr.",
"Bernstein",
"said",
"he",
"will",
"stay",
"until",
"Dec.",
"31",
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"work",
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",",
"who",
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"Mr.",
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",",
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",",
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",",
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".",
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"800",
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"from",
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"40",
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".",
"``",
"Bob",
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",",
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".",
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",",
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"Bob",
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".",
"''",
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"House",
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"many",
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"years",
",",
"some",
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"the",
"bigger",
"ones",
"have",
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"been",
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"so",
"easily",
".",
"Crown",
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"Group",
",",
"acquired",
"last",
"year",
",",
"is",
"said",
"to",
"be",
"turning",
"in",
"disappointing",
"results",
".",
"As",
"a",
"private",
"company",
",",
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"House",
"does",
"n't",
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".",
"Mr.",
"Bernstein",
",",
"who",
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"Bennett",
"Cerf",
",",
"has",
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"only",
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"second",
"president",
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"House",
"since",
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"in",
"1925",
".",
"Speculation",
"on",
"his",
"successor",
"centers",
"on",
"a",
"number",
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"heads",
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".",
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",",
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"Rey/Fawcett",
",",
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".",
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"Anthony",
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",",
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"British",
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",",
"Century",
"Hutchinson",
",",
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".",
"There",
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",",
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",",
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"'s",
"Alfred",
"A.",
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",",
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".",
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",",
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"House",
",",
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"Sonny",
"Mehta",
",",
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"A.",
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".",
"When",
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",",
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"she",
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"to",
"be",
"a",
"full-time",
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".",
"Mr.",
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"a",
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"a",
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"his",
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"was",
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".",
"Mr.",
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",",
"a",
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",",
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",",
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"spent",
"much",
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"his",
"time",
"in",
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"years",
"on",
"human",
"rights",
"issues",
"."
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[
"Democracy",
"can",
"be",
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":",
"Sometimes",
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"Much",
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",",
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",",
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"(",
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",",
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"was",
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".",
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"Republicans",
"met",
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"Chief",
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"John",
"Sununu",
"on",
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",",
"and",
"Mr.",
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".",
"Amid",
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"timidity",
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",",
"the",
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",",
"41",
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"Connecticut",
"Rep.",
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"Johnson",
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"Even",
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"Orrin",
"Hatch",
"(",
"R.",
",",
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",",
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"were",
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"constitutional",
"amendment",
".",
"Ms.",
"Johnson",
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"committee",
",",
"but",
"she",
"was",
"talking",
"to",
"herself",
".",
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"many",
"Republicans",
"are",
"listening",
".",
"They",
"'re",
"frightened",
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"what",
"they",
"see",
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"New",
"Jersey",
",",
"and",
"especially",
"Virginia",
",",
"where",
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"GOP",
"candidates",
"for",
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"are",
"being",
"pummeled",
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".",
"Eddie",
"Mahe",
",",
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",",
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"candidates",
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"avoided",
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"had",
"framed",
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"issue",
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"(",
"In",
"Virginia",
",",
"Marshall",
"Coleman",
"and",
"his",
"running",
"mate",
",",
"Eddy",
"Dalton",
",",
"are",
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"cases",
"of",
"rape",
"or",
"incest",
".",
")",
"But",
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"Mahe",
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",",
"``",
"The",
"net",
"loser",
"in",
"the",
"next",
"few",
"years",
"is",
"the",
"right-to-life",
"side",
".",
"''",
"Darla",
"St.",
"Martin",
",",
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"to",
"Life",
"Committee",
",",
"says",
"exit",
"polls",
"from",
"the",
"1988",
"election",
"had",
"single-issue",
",",
"pro-life",
"voters",
"giving",
"Mr.",
"Bush",
"about",
"five",
"more",
"percentage",
"points",
"of",
"support",
"than",
"pro-choice",
"voters",
"gave",
"Michael",
"Dukakis",
".",
"But",
"the",
"Supreme",
"Court",
"'s",
"opening",
"of",
"debate",
"may",
"have",
"changed",
"even",
"that",
".",
"GOP",
"pollster",
"Neil",
"Newhouse",
",",
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"Group",
",",
"says",
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"this",
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"showed",
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"had",
"about",
"evened",
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"principle",
",",
"but",
"they",
"'ll",
"do",
"for",
"some",
"politicians",
".",
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"danger",
"is",
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"abortion",
"could",
"become",
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"them",
"what",
"it",
"'s",
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",",
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"litmus",
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",",
"at",
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"any",
"job",
"in",
"which",
"abortion",
"is",
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"remotely",
"an",
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".",
"Oklahoma",
"official",
"Robert",
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"lost",
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"chance",
"for",
"a",
"senior",
"job",
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"Department",
"of",
"Health",
"and",
"Human",
"Services",
"after",
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"activists",
"opposed",
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".",
"Caldwell",
"Butler",
",",
"a",
"conservative",
"former",
"congressman",
",",
"was",
"barred",
"from",
"a",
"Legal",
"Services",
"post",
",",
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"wrong",
"answers",
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"Even",
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"'s",
"doctor",
",",
"Burton",
"Lee",
",",
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"record",
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"surgeon",
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"could",
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"test",
".",
"In",
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"case",
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"HHS",
"Secretary",
"Louis",
"Sullivan",
",",
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"coalition",
".",
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"waffled",
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"abortion",
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"year",
",",
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".",
"Though",
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",",
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"own",
"day",
"will",
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"will",
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"way",
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"frame",
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"ways",
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"Does",
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"consent",
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"abortions",
"?",
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[
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[
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[
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"held",
"for",
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[
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".",
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[
"Bear",
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",",
"Lawrence",
"Kudlow",
",",
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"Global",
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[
"John",
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",",
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",",
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"Holding",
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",",
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",",
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",",
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"Robert",
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",",
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".",
"I.C.H.",
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",",
"42",
",",
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",",
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",",
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"John",
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",",
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"HMS",
"Acquisition",
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"Hicks",
",",
"Muse",
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"Co.",
",",
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"buy",
"most",
"of",
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"'s",
"Denver-based",
"subsidiaries",
"."
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[
"Consolidated",
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",",
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".",
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",",
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"intense",
"''",
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",",
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",",
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",",
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",",
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"."
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[
"Government",
"officials",
"here",
"and",
"in",
"other",
"countries",
"laid",
"plans",
"through",
"the",
"weekend",
"to",
"head",
"off",
"a",
"Monday",
"market",
"meltdown",
"--",
"but",
"went",
"out",
"of",
"their",
"way",
"to",
"keep",
"their",
"moves",
"quiet",
".",
"Federal",
"Reserve",
"Chairman",
"Alan",
"Greenspan",
"was",
"on",
"the",
"telephones",
",",
"making",
"it",
"clear",
"to",
"officials",
"in",
"the",
"U.S.",
"and",
"abroad",
"that",
"the",
"Fed",
"was",
"prepared",
"to",
"inject",
"massive",
"amounts",
"of",
"money",
"into",
"the",
"banking",
"system",
",",
"as",
"it",
"did",
"in",
"October",
"1987",
",",
"if",
"the",
"action",
"were",
"needed",
"to",
"prevent",
"a",
"financial",
"crisis",
".",
"And",
"at",
"the",
"Treasury",
",",
"Secretary",
"Nicholas",
"Brady",
"talked",
"with",
"friends",
"and",
"associates",
"on",
"Wall",
"Street",
"while",
"Assistant",
"Secretary",
"David",
"Mullins",
"carefully",
"analyzed",
"data",
"on",
"the",
"Friday",
"market",
"plunge",
".",
"But",
"the",
"officials",
"feared",
"that",
"any",
"public",
"announcements",
"would",
"only",
"increase",
"market",
"jitters",
".",
"In",
"addition",
",",
"officials",
"at",
"the",
"Fed",
"and",
"in",
"the",
"Bush",
"administration",
"decided",
"that",
"avoiding",
"overt",
"actions",
"and",
"statements",
"over",
"the",
"weekend",
"would",
"give",
"them",
"more",
"strength",
"and",
"flexibility",
"should",
"Friday",
"'s",
"market",
"drop",
"turn",
"into",
"this",
"morning",
"'s",
"rout",
".",
"``",
"The",
"disadvantage",
"at",
"this",
"point",
"is",
"that",
"anything",
"you",
"do",
"that",
"looks",
"like",
"you",
"are",
"doing",
"too",
"much",
"tends",
"to",
"reinforce",
"a",
"sense",
"of",
"crisis",
",",
"''",
"said",
"one",
"government",
"official",
",",
"insisting",
"on",
"anonymity",
".",
"The",
"Fed",
"'s",
"efforts",
"at",
"secrecy",
"were",
"partly",
"foiled",
"Sunday",
"morning",
",",
"when",
"both",
"the",
"New",
"York",
"Times",
"and",
"the",
"Washington",
"Post",
"carried",
"stories",
"quoting",
"a",
"senior",
"Fed",
"official",
"saying",
"the",
"central",
"bank",
"was",
"prepared",
"to",
"pour",
"cash",
"into",
"the",
"banking",
"system",
"Monday",
"morning",
".",
"Fed",
"Chairman",
"Greenspan",
"was",
"surprised",
"by",
"both",
"stories",
",",
"according",
"to",
"knowledgeable",
"sources",
",",
"and",
"insisted",
"he",
"had",
"n't",
"authorized",
"any",
"public",
"comment",
".",
"Nevertheless",
",",
"Fed",
"officials",
"acknowledged",
"the",
"stories",
"were",
"reasonably",
"accurate",
"portrayals",
"of",
"the",
"central",
"bank",
"'s",
"game",
"plan",
".",
"It",
"is",
"prepared",
"to",
"assume",
"the",
"same",
"role",
"it",
"played",
"in",
"October",
"1987",
",",
"providing",
"money",
"to",
"the",
"markets",
"if",
"necessary",
"to",
"keep",
"the",
"financial",
"system",
"afloat",
".",
"The",
"Fed",
"provides",
"money",
"to",
"the",
"banking",
"system",
"by",
"buying",
"government",
"securities",
"from",
"financial",
"institutions",
".",
"The",
"reticence",
"of",
"federal",
"officials",
"was",
"evident",
"in",
"the",
"appearance",
"Sunday",
"of",
"Budget",
"Director",
"Richard",
"Darman",
"on",
"ABC",
"'s",
"``",
"This",
"Week",
".",
"''",
"``",
"Secretary",
"of",
"the",
"Treasury",
"Brady",
"and",
"Chairman",
"Greenspan",
"and",
"the",
"chairman",
"of",
"the",
"SEC",
"and",
"others",
"have",
"been",
"in",
"close",
"contact",
".",
"I",
"'m",
"sure",
"they",
"'ll",
"do",
"what",
"'s",
"right",
",",
"what",
"'s",
"prudent",
",",
"what",
"'s",
"sensible",
",",
"''",
"he",
"said",
".",
"When",
"it",
"was",
"suggested",
"his",
"comment",
"was",
"a",
"``",
"non-answer",
",",
"''",
"Mr.",
"Darman",
"replied",
":",
"``",
"It",
"is",
"a",
"non-answer",
".",
"But",
",",
"in",
"this",
"context",
",",
"that",
"'s",
"the",
"smart",
"thing",
"to",
"do",
".",
"''",
"At",
"the",
"Treasury",
",",
"Secretary",
"Brady",
"issued",
"a",
"statement",
"minimizing",
"the",
"stock",
"market",
"'s",
"drop",
".",
"``",
"Today",
"'s",
"stock",
"market",
"decline",
"does",
"n't",
"signal",
"any",
"fundamental",
"change",
"in",
"the",
"condition",
"of",
"the",
"economy",
",",
"''",
"he",
"said",
".",
"``",
"The",
"economy",
"remains",
"well-balanced",
",",
"and",
"the",
"outlook",
"is",
"for",
"continued",
"moderate",
"growth",
".",
"''",
"But",
"administration",
"officials",
"conceded",
"that",
"Friday",
"'s",
"drop",
"carried",
"the",
"chance",
"of",
"further",
"declines",
"this",
"week",
".",
"``",
"One",
"possibility",
"is",
"that",
"this",
"is",
"a",
"surgical",
"setback",
",",
"reasonably",
"limited",
"in",
"its",
"breadth",
",",
"and",
"not",
"a",
"major",
"problem",
",",
"''",
"said",
"one",
"senior",
"administration",
"official",
",",
"who",
"also",
"asked",
"that",
"he",
"not",
"be",
"named",
".",
"``",
"The",
"other",
"is",
"that",
"we",
"see",
"another",
"major",
"disaster",
",",
"like",
"two",
"years",
"ago",
".",
"I",
"think",
"that",
"'s",
"less",
"likely",
".",
"''",
"Nevertheless",
",",
"Fed",
"Chairman",
"Greenspan",
"and",
"Vice",
"Chairman",
"Manuel",
"Johnson",
"were",
"in",
"their",
"offices",
"Sunday",
"evening",
",",
"monitoring",
"events",
"as",
"they",
"unfolded",
"in",
"markets",
"around",
"the",
"world",
".",
"The",
"action",
"was",
"expected",
"to",
"begin",
"with",
"the",
"opening",
"of",
"the",
"New",
"Zealand",
"foreign",
"exchange",
"markets",
"at",
"5",
"p.m.",
"EST",
"--",
"when",
"stocks",
"there",
"plunged",
"--",
"and",
"to",
"continue",
"as",
"the",
"trading",
"day",
"began",
"later",
"in",
"the",
"evening",
"in",
"Tokyo",
"and",
"through",
"early",
"this",
"morning",
"in",
"Europe",
".",
"Both",
"the",
"Treasury",
"and",
"the",
"Fed",
"planned",
"to",
"keep",
"market",
"rooms",
"operating",
"throughout",
"the",
"night",
"to",
"monitor",
"the",
"developments",
".",
"In",
"Tokyo",
",",
"share",
"prices",
"dropped",
"sharply",
"by",
"1.7",
"%",
"in",
"early",
"Monday",
"morning",
"trading",
".",
"After",
"the",
"initial",
"slide",
",",
"the",
"market",
"appeared",
"to",
"be",
"turning",
"around",
"but",
"by",
"early",
"afternoon",
"was",
"headed",
"lower",
".",
"In",
"the",
"Bush",
"administration",
",",
"the",
"lead",
"is",
"being",
"taken",
"by",
"Treasury",
"Secretary",
"Brady",
",",
"Undersecretary",
"Robert",
"Glauber",
"and",
"Assistant",
"Secretary",
"Mullins",
".",
"The",
"three",
"men",
"worked",
"together",
"on",
"the",
"so-called",
"Brady",
"Commission",
",",
"headed",
"by",
"Mr.",
"Brady",
",",
"which",
"was",
"established",
"after",
"the",
"1987",
"crash",
"to",
"examine",
"the",
"market",
"'s",
"collapse",
".",
"As",
"a",
"result",
"they",
"have",
"extensive",
"knowledge",
"in",
"financial",
"markets",
",",
"and",
"financial",
"market",
"crises",
".",
"Mr.",
"Brady",
"was",
"at",
"the",
"White",
"House",
"Friday",
"afternoon",
"when",
"the",
"stock",
"market",
"'s",
"decline",
"began",
".",
"He",
"was",
"quickly",
"on",
"the",
"phone",
"with",
"Mr.",
"Mullins",
",",
"who",
"in",
"turn",
"was",
"talking",
"with",
"the",
"chairmen",
"of",
"the",
"New",
"York",
"and",
"Chicago",
"exchanges",
".",
"Later",
",",
"Mr.",
"Brady",
"phoned",
"Mr.",
"Greenspan",
",",
"SEC",
"Chairman",
"Richard",
"Breeden",
"and",
"numerous",
"contacts",
"in",
"New",
"York",
"and",
"overseas",
".",
"Aides",
"say",
"he",
"continued",
"to",
"work",
"the",
"phones",
"through",
"the",
"weekend",
".",
"Administration",
"officials",
"say",
"President",
"Bush",
"was",
"briefed",
"throughout",
"Friday",
"afternoon",
"and",
"evening",
",",
"even",
"after",
"leaving",
"for",
"Camp",
"David",
".",
"He",
"had",
"frequent",
"telephone",
"consultations",
"with",
"Mr.",
"Brady",
"and",
"Michael",
"Boskin",
",",
"chairman",
"of",
"the",
"counsel",
"of",
"economic",
"advisers",
".",
"Government",
"officials",
"tried",
"throughout",
"the",
"weekend",
"to",
"render",
"a",
"business-as-usual",
"appearance",
"in",
"order",
"to",
"avoid",
"any",
"sense",
"of",
"panic",
".",
"Treasury",
"Undersecretary",
"David",
"Mulford",
",",
"for",
"instance",
",",
"was",
"at",
"a",
"meeting",
"of",
"the",
"Business",
"Council",
"in",
"Hot",
"Springs",
",",
"Va.",
",",
"when",
"the",
"stock",
"market",
"fell",
",",
"and",
"remained",
"there",
"through",
"the",
"following",
"day",
".",
"And",
"as",
"of",
"last",
"night",
",",
"Fed",
"Chairman",
"Greenspan",
"had",
"n't",
"canceled",
"his",
"plans",
"to",
"address",
"the",
"American",
"Bankers",
"Association",
"convention",
"in",
"Washington",
"at",
"10",
"a.m.",
"this",
"morning",
".",
"Ironically",
",",
"Mr.",
"Greenspan",
"was",
"scheduled",
"to",
"address",
"the",
"same",
"convention",
"in",
"Dallas",
"on",
"Oct.",
"20",
",",
"1987",
".",
"He",
"flew",
"to",
"Dallas",
"on",
"Oct.",
"19",
",",
"when",
"the",
"market",
"plummeted",
"508",
"points",
",",
"but",
"then",
"turned",
"around",
"the",
"next",
"morning",
"and",
"returned",
"to",
"Washington",
"without",
"delivering",
"his",
"speech",
"."
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[
"Just",
"five",
"months",
"after",
"Ogilvy",
"Group",
"was",
"swallowed",
"up",
"in",
"an",
"unsolicited",
"takeover",
",",
"Kenneth",
"Roman",
",",
"Ogilvy",
"'s",
"chairman",
"and",
"chief",
"executive",
"officer",
",",
"said",
"he",
"is",
"leaving",
"to",
"take",
"a",
"top",
"post",
"at",
"American",
"Express",
"Co",
".",
"Mr.",
"Roman",
",",
"59",
"years",
"old",
",",
"abruptly",
"announced",
"he",
"will",
"leave",
"the",
"venerable",
"ad",
"agency",
",",
"whose",
"largest",
"client",
"is",
"American",
"Express",
",",
"to",
"become",
"American",
"Express",
"'s",
"executive",
"vice",
"president",
"for",
"corporate",
"affairs",
"and",
"communications",
".",
"He",
"will",
"succeed",
"Harry",
"L.",
"Freeman",
",",
"57",
",",
"who",
"has",
"said",
"he",
"will",
"retire",
"in",
"December",
".",
"Mr.",
"Freeman",
"said",
"in",
"August",
"that",
"he",
"would",
"retire",
"by",
"the",
"end",
"of",
"this",
"year",
"to",
"take",
"``",
"executive",
"responsibility",
"''",
"for",
"an",
"embarrassing",
"effort",
"to",
"discredit",
"banker",
"Edmond",
"Safra",
".",
"American",
"Express",
"representatives",
"apparently",
"influenced",
"the",
"publication",
"of",
"unfavorable",
"articles",
"about",
"Mr.",
"Safra",
".",
"The",
"company",
"later",
"apologized",
"and",
"agreed",
"to",
"make",
"$",
"8",
"million",
"in",
"contributions",
"to",
"charities",
"chosen",
"by",
"him",
".",
"Although",
"Mr.",
"Freeman",
"is",
"retiring",
",",
"he",
"will",
"continue",
"to",
"work",
"as",
"a",
"consultant",
"for",
"American",
"Express",
"on",
"a",
"project",
"basis",
".",
"Ad",
"industry",
"executives",
"were",
"n't",
"surprised",
"by",
"Mr.",
"Roman",
"'s",
"decision",
"to",
"leave",
"Ogilvy",
".",
"The",
"agency",
",",
"under",
"his",
"direction",
",",
"bitterly",
"fought",
"a",
"takeover",
"attempt",
"by",
"WPP",
"Group",
"PLC",
"of",
"London",
"before",
"succumbing",
"in",
"May",
".",
"And",
"although",
"Mr.",
"Roman",
"and",
"WPP",
"'s",
"chief",
"executive",
",",
"Martin",
"Sorrell",
",",
"have",
"gone",
"out",
"of",
"their",
"way",
"to",
"be",
"publicly",
"supportive",
"of",
"each",
"other",
",",
"people",
"close",
"to",
"Mr.",
"Roman",
"say",
"he",
"was",
"unhappy",
"giving",
"up",
"control",
"of",
"the",
"company",
".",
"Some",
"executives",
"also",
"cite",
"tension",
"because",
"of",
"efforts",
"by",
"Mr.",
"Sorrell",
",",
"a",
"financial",
"man",
",",
"to",
"cut",
"costs",
"at",
"the",
"agency",
".",
"Mr.",
"Roman",
"will",
"be",
"succeeded",
"as",
"the",
"head",
"of",
"Ogilvy",
"'s",
"flagship",
"ad",
"agency",
",",
"Ogilvy",
"&",
"Mather",
"Worldwide",
",",
"by",
"Graham",
"Phillips",
",",
"50",
",",
"who",
"had",
"been",
"president",
"of",
"North",
"American",
"operations",
"and",
"who",
",",
"like",
"Mr.",
"Sorrell",
",",
"is",
"British",
".",
"Alexander",
"Brody",
",",
"56",
",",
"will",
"take",
"on",
"the",
"newly",
"created",
"position",
"of",
"president",
"of",
"the",
"world-wide",
"agency",
"and",
"chief",
"executive",
"of",
"its",
"international",
"operations",
".",
"He",
"had",
"been",
"president",
"of",
"the",
"international",
"operations",
".",
"Mr.",
"Roman",
"also",
"had",
"overseen",
"Ogilvy",
"Group",
"'s",
"two",
"other",
"units",
",",
"the",
"Scali",
"McCabe",
"Sloves",
"advertising",
"agency",
"and",
"its",
"research",
"division",
",",
"but",
"those",
"units",
"will",
"now",
"report",
"directly",
"to",
"WPP",
".",
"Mr.",
"Roman",
"appears",
"custom-made",
"for",
"the",
"American",
"Express",
"job",
".",
"Known",
"as",
"a",
"traditional",
"executive",
",",
"he",
"is",
"very",
"much",
"in",
"the",
"conservative",
"American",
"Express",
"mold",
".",
"Moreover",
",",
"after",
"26",
"years",
"at",
"Ogilvy",
"he",
"had",
"honed",
"a",
"reputation",
"for",
"being",
"squeaky-clean",
"and",
"a",
"straight",
"arrow",
"--",
"which",
"can",
"only",
"help",
"American",
"Express",
"in",
"the",
"wake",
"of",
"the",
"Safra",
"incident",
".",
"He",
"also",
"is",
"close",
"to",
"American",
"Express",
"'s",
"chairman",
"and",
"chief",
"executive",
"officer",
",",
"James",
"D.",
"Robinson",
"III",
".",
"Aside",
"from",
"working",
"with",
"Mr.",
"Robinson",
"on",
"the",
"American",
"Express",
"advertising",
"account",
"for",
"about",
"11",
"years",
",",
"Mr.",
"Roman",
"serves",
"on",
"several",
"of",
"the",
"same",
"charities",
"and",
"boards",
"as",
"Mr.",
"Robinson",
".",
"The",
"abrupt",
"management",
"change",
"sparked",
"widespread",
"speculation",
"that",
"Mr.",
"Roman",
"had",
"been",
"pushed",
"out",
"of",
"Ogilvy",
"'s",
"top",
"spot",
"by",
"Mr.",
"Sorrell",
".",
"But",
"Mr.",
"Roman",
"flatly",
"denied",
"the",
"speculation",
",",
"saying",
"Mr.",
"Sorrell",
"had",
"tried",
"several",
"times",
"to",
"persuade",
"him",
"to",
"stay",
",",
"offering",
"various",
"incentives",
"and",
"in",
"one",
"instance",
"sending",
"a",
"note",
"with",
"a",
"case",
"of",
"wine",
"(",
"The",
"wine",
",",
"naturally",
",",
"was",
"Seagram",
"'s",
"brand",
",",
"an",
"Ogilvy",
"client",
")",
".",
"``",
"He",
"asked",
"me",
"not",
"to",
"resign",
".",
"The",
"implication",
"that",
"I",
"was",
"pushed",
"aside",
"would",
"n't",
"be",
"accurate",
",",
"''",
"Mr.",
"Roman",
"said",
".",
"Mr.",
"Sorrell",
",",
"traveling",
"in",
"the",
"Far",
"East",
",",
"could",
"n't",
"be",
"reached",
".",
"Mr.",
"Roman",
"said",
"American",
"Express",
"'s",
"Mr.",
"Robinson",
"first",
"approached",
"him",
"about",
"the",
"job",
"in",
"late",
"September",
".",
"According",
"to",
"industry",
"executives",
",",
"Peter",
"Sutherland",
",",
"a",
"former",
"European",
"Community",
"commissioner",
"from",
"Ireland",
",",
"was",
"also",
"a",
"serious",
"contender",
"for",
"the",
"American",
"Express",
"job",
".",
"Although",
"it",
"ultimately",
"was",
"n't",
"offered",
"to",
"him",
",",
"he",
"will",
"be",
"on",
"retainer",
"to",
"American",
"Express",
"as",
"an",
"adviser",
"on",
"international",
"matters",
".",
"After",
"talking",
"on",
"and",
"off",
"for",
"the",
"past",
"four",
"weeks",
",",
"Mr.",
"Roman",
"said",
",",
"he",
"agreed",
"to",
"take",
"the",
"job",
"because",
"``",
"it",
"'s",
"the",
"right",
"time",
",",
"it",
"'s",
"a",
"terrific",
"opportunity",
",",
"and",
"I",
"think",
"I",
"leave",
"the",
"company",
"in",
"very",
"strong",
"hands",
".",
"It",
"was",
"my",
"decision",
",",
"not",
"anyone",
"else",
"'s",
".",
"''",
"Mr.",
"Roman",
"also",
"brushed",
"aside",
"reports",
"about",
"infighting",
"between",
"him",
"and",
"Mr.",
"Phillips",
",",
"his",
"successor",
"at",
"Ogilvy",
".",
"The",
"two",
"executives",
"could",
"hardly",
"be",
"more",
"different",
".",
"Mr.",
"Roman",
"comes",
"across",
"as",
"a",
"low-key",
"executive",
";",
"Mr.",
"Phillips",
"has",
"a",
"flashier",
"personality",
".",
"During",
"time",
"off",
",",
"Mr.",
"Roman",
"tends",
"to",
"his",
"garden",
";",
"Mr.",
"Phillips",
"confesses",
"to",
"a",
"fondness",
"for",
",",
"among",
"other",
"things",
",",
"fast",
"cars",
"and",
"planes",
".",
"Industry",
"executives",
"say",
"that",
"although",
"the",
"two",
"executives",
"used",
"to",
"clash",
"more",
"frequently",
",",
"the",
"WPP",
"takeover",
"brought",
"them",
"closer",
"together",
".",
"``",
"I",
"'m",
"the",
"guy",
"who",
"made",
"him",
"head",
"of",
"New",
"York",
",",
"head",
"of",
"the",
"U.S.",
",",
"president",
"of",
"North",
"America",
",",
"and",
"recommended",
"him",
"-LCB-",
"to",
"Mr.",
"Sorrell",
"-RCB-",
"as",
"my",
"successor",
".",
"Would",
"I",
"have",
"done",
"all",
"those",
"things",
"successively",
"if",
"I",
"did",
"n't",
"think",
"he",
"was",
"the",
"right",
"guy",
"?",
"''",
"Mr.",
"Roman",
"asked",
".",
"He",
"labeled",
"reports",
"of",
"friction",
"``",
"ridiculous",
",",
"''",
"and",
"said",
"that",
"he",
"spent",
"part",
"of",
"the",
"weekend",
"on",
"Mr.",
"Phillips",
"'s",
"boat",
"in",
"Connecticut",
".",
"Mr.",
"Roman",
"will",
"oversee",
"American",
"Express",
"'s",
"public",
"relations",
"and",
"government",
"affairs",
",",
"among",
"other",
"things",
",",
"but",
"he",
"wo",
"n't",
"be",
"involved",
"in",
"its",
"advertising",
",",
"which",
"is",
"handled",
"by",
"the",
"operating",
"units",
".",
"``",
"I",
"consider",
"this",
"a",
"second",
"career",
",",
"''",
"he",
"said",
".",
"He",
"also",
"will",
"sit",
"on",
"the",
"company",
"'s",
"corporate",
"planning",
"and",
"policy",
"committee",
",",
"made",
"up",
"of",
"the",
"top",
"corporate",
"and",
"operating",
"executives",
".",
"Mr.",
"Roman",
"'s",
"departure",
"is",
"n't",
"expected",
"to",
"have",
"any",
"enormous",
"repercussions",
"at",
"Ogilvy",
".",
"American",
"Express",
",",
"Kraft",
"General",
"Foods",
",",
"and",
"Mattel",
"executives",
"said",
"the",
"move",
"wo",
"n't",
"affect",
"their",
"relationships",
"with",
"the",
"ad",
"agency",
".",
"``",
"General",
"Foods",
"'s",
"relationships",
"with",
"its",
"agencies",
"are",
"based",
"on",
"the",
"agencies",
"'",
"work",
",",
"and",
"will",
"continue",
"to",
"be",
",",
"''",
"said",
"David",
"Hurwitt",
",",
"a",
"vice",
"president",
"of",
"Kraft",
"General",
"Foods",
".",
"But",
"some",
"clients",
"and",
"analysts",
"expressed",
"concern",
"that",
"Mr.",
"Phillips",
"is",
"n't",
"as",
"well-known",
"to",
"many",
"clients",
".",
"``",
"Ken",
"was",
"my",
"key",
"contact",
",",
"''",
"said",
"J.",
"Nicholas",
"Hahn",
",",
"president",
"and",
"chief",
"executive",
"officer",
"of",
"Cotton",
"Inc.",
",",
"which",
"represents",
"cotton",
"producers",
".",
"``",
"I",
"do",
"n't",
"know",
"-LCB-",
"Mr.",
"Phillips",
"-RCB-",
"all",
"that",
"well",
".",
"I",
"have",
"n't",
"seen",
"or",
"talked",
"to",
"him",
"in",
"several",
"years",
".",
"''",
"And",
"some",
"analysts",
"questioned",
"whether",
"Mr.",
"Phillips",
"would",
"have",
"the",
"skills",
"Ogilvy",
"needs",
"to",
"turn",
"the",
"agency",
"around",
".",
"While",
"the",
"agency",
"has",
"done",
"well",
"in",
"many",
"parts",
"of",
"the",
"world",
",",
"its",
"flagship",
"New",
"York",
"office",
"has",
"had",
"a",
"dismal",
"track",
"record",
"recently",
";",
"it",
"has",
"won",
"few",
"new",
"accounts",
"while",
"losing",
"big",
"ones",
",",
"including",
"Maxwell",
"House",
".",
"``",
"I",
"think",
"-LCB-",
"Mr.",
"Phillips",
"-RCB-",
"is",
"going",
"to",
"need",
"some",
"help",
".",
"I",
"think",
"they",
"need",
"creative",
"leadership",
",",
"and",
"I",
"do",
"n't",
"think",
"they",
"have",
"it",
",",
"''",
"said",
"Emma",
"Hill",
",",
"an",
"analyst",
"with",
"Wertheim",
"&",
"Co",
".",
"Ogilvy",
"&",
"Mather",
"'s",
"top",
"creative",
"executive",
",",
"Norman",
"Berry",
",",
"left",
"the",
"agency",
"earlier",
"this",
"year",
".",
"``",
"Norm",
"Berry",
"was",
"a",
"creative",
"inspiration",
"at",
"the",
"company",
",",
"and",
"nobody",
"has",
"filled",
"that",
"void",
",",
"''",
"said",
"Ms.",
"Hill",
".",
"But",
"other",
"analysts",
"said",
"that",
"having",
"Mr.",
"Phillips",
"succeed",
"Mr.",
"Roman",
"would",
"make",
"for",
"a",
"smooth",
"transition",
".",
"``",
"Graham",
"Phillips",
"has",
"been",
"there",
"a",
"long",
"time",
",",
"knows",
"the",
"culture",
"well",
",",
"is",
"aggressive",
",",
"and",
"apparently",
"gets",
"along",
"well",
"with",
"''",
"Mr.",
"Sorrell",
",",
"said",
"Andrew",
"Wallach",
",",
"an",
"analyst",
"with",
"Drexel",
"Burnham",
"Lambert",
".",
"``",
"It",
"'s",
"probably",
"a",
"reasonable",
"transition",
".",
"Hopefully",
",",
"he",
"'ll",
"be",
"the",
"answer",
"to",
"the",
"problems",
"they",
"'ve",
"had",
"in",
"New",
"York",
".",
"''",
"Sale",
"of",
"Saatchi",
"Unit",
"Close",
"Computer",
"Sciences",
"Corp.",
",",
"El",
"Segundo",
",",
"Calif.",
",",
"said",
"it",
"is",
"close",
"to",
"making",
"final",
"an",
"agreement",
"to",
"buy",
"Cleveland",
"Consulting",
"Associates",
"from",
"Saatchi",
"&",
"Saatchi",
"Computer",
"Sciences",
"would",
"n't",
"disclose",
"the",
"proposed",
"purchase",
"price",
"for",
"Cleveland",
"Consulting",
",",
"which",
"counsels",
"companies",
"on",
"logistics",
"and",
"supply",
".",
"But",
"David",
"Lord",
",",
"managing",
"editor",
"of",
"Consultants",
"News",
",",
"an",
"industry",
"publication",
"based",
"in",
"Fitzwilliam",
",",
"N.H.",
",",
"said",
"an",
"industry",
"standard",
"would",
"suggest",
"a",
"purchase",
"price",
"of",
"between",
"one",
"and",
"two",
"times",
"Cleveland",
"Consulting",
"'s",
"approximately",
"$",
"15",
"million",
"annual",
"revenue",
".",
"Both",
"Saatchi",
"&",
"Saatchi",
",",
"which",
"announced",
"its",
"intention",
"to",
"sell",
"off",
"most",
"of",
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[
"AVX",
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"Unitrode",
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"AVX",
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"a",
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"11",
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",",
"a",
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".",
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"capacitors",
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"."
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[
"If",
"a",
"hostile",
"predator",
"emerges",
"for",
"Saatchi",
"&",
"Saatchi",
"Co.",
",",
"co-founders",
"Charles",
"and",
"Maurice",
"Saatchi",
"will",
"lead",
"a",
"management",
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",",
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"the",
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"said",
".",
"Financing",
"for",
"any",
"takeover",
"attempt",
"may",
"be",
"problematic",
"in",
"the",
"wake",
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"stock-market",
"sell-off",
"in",
"New",
"York",
"and",
"turmoil",
"in",
"the",
"junk-bond",
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".",
"But",
"the",
"beleaguered",
"British",
"advertising",
"and",
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"giant",
",",
"which",
"last",
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"named",
"a",
"new",
"chief",
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"officer",
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"replace",
"Maurice",
"Saatchi",
",",
"has",
"been",
"the",
"subject",
"of",
"intense",
"takeover",
"speculation",
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"weeks",
".",
"Last",
"week",
",",
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"'s",
"largest",
"shareholder",
",",
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",",
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"had",
"been",
"approached",
"by",
"one",
"or",
"more",
"third",
"parties",
"interested",
"in",
"a",
"possible",
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".",
"And",
"Carl",
"Spielvogel",
",",
"chief",
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"'s",
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"Spielvogel",
"Bates",
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"unit",
",",
"said",
"he",
"had",
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"lead",
"a",
"management",
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",",
"but",
"was",
"rebuffed",
"by",
"Charles",
"Saatchi",
".",
"Mr.",
"Spielvogel",
"said",
"he",
"would",
"n't",
"launch",
"a",
"hostile",
"bid",
".",
"The",
"executive",
"close",
"to",
"Saatchi",
"&",
"Saatchi",
"said",
"that",
"``",
"if",
"a",
"bidder",
"came",
"up",
"with",
"a",
"ludicrously",
"high",
"offer",
",",
"a",
"crazy",
"offer",
"which",
"Saatchi",
"knew",
"it",
"could",
"n't",
"beat",
",",
"it",
"would",
"have",
"no",
"choice",
"but",
"to",
"recommend",
"it",
"to",
"shareholders",
".",
"But",
"-LCB-",
"otherwise",
"-RCB-",
"it",
"would",
"undoubtedly",
"come",
"back",
"''",
"with",
"an",
"offer",
"by",
"management",
".",
"The",
"executive",
"said",
"any",
"buy-out",
"would",
"be",
"led",
"by",
"the",
"current",
"board",
",",
"whose",
"chairman",
"is",
"Maurice",
"Saatchi",
"and",
"whose",
"strategic",
"guiding",
"force",
"is",
"believed",
"to",
"be",
"Charles",
"Saatchi",
".",
"Mr.",
"Spielvogel",
"is",
"n't",
"part",
"of",
"the",
"board",
",",
"nor",
"are",
"any",
"of",
"the",
"other",
"heads",
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"'s",
"big",
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"ad",
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".",
"The",
"executive",
"did",
"n't",
"name",
"any",
"price",
",",
"but",
"securities",
"analysts",
"have",
"said",
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"would",
"fetch",
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"1.3",
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".",
"The",
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"denied",
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"Saatchi",
"was",
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"in",
"the",
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"only",
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"clean",
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"company",
"financially",
"so",
"that",
"the",
"brothers",
"could",
"lead",
"a",
"buy-back",
".",
"That",
"speculation",
"abounded",
"Friday",
"as",
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"executives",
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"the",
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"of",
"the",
"new",
"chief",
"executive",
",",
"Robert",
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",",
"who",
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"Saatchi",
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"on",
"Jan.",
"1",
".",
"Mr.",
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",",
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"the",
"pharmaceutical",
"research",
"firm",
"IMS",
"International",
"Inc.",
",",
"has",
"a",
"reputation",
"as",
"a",
"savvy",
"financial",
"manager",
",",
"and",
"will",
"be",
"charged",
"largely",
"with",
"repairing",
"Saatchi",
"'s",
"poor",
"financial",
"state",
".",
"Asked",
"about",
"the",
"speculation",
"that",
"Mr.",
"Louis-Dreyfus",
"has",
"been",
"hired",
"to",
"pave",
"the",
"way",
"for",
"a",
"buy-out",
"by",
"the",
"brothers",
",",
"the",
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"replied",
",",
"``",
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"is",
"n't",
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"has",
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"brought",
"in",
".",
"He",
"was",
"brought",
"in",
"to",
"turn",
"around",
"the",
"company",
".",
"''",
"Separately",
",",
"several",
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"clients",
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"they",
"believe",
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"'s",
"management",
"shakeup",
"will",
"have",
"little",
"affect",
"on",
"them",
".",
"``",
"It",
"has",
"n't",
"had",
"any",
"impact",
"on",
"us",
",",
"nor",
"do",
"we",
"expect",
"it",
"to",
",",
"''",
"said",
"a",
"spokeswoman",
"for",
"Miller",
"Brewing",
"Co.",
",",
"a",
"major",
"client",
"of",
"Backer",
"Spielvogel",
".",
"John",
"Lampe",
",",
"director",
"of",
"advertising",
"at",
"PaineWebber",
"Inc.",
",",
"a",
"Saatchi",
"&",
"Saatchi",
"Advertising",
"client",
",",
"said",
":",
"``",
"We",
"have",
"no",
"problem",
"with",
"the",
"announcement",
",",
"because",
"we",
"do",
"n't",
"know",
"what",
"change",
"it",
"'s",
"going",
"to",
"bring",
"about",
".",
"We",
"are",
"n't",
"going",
"to",
"change",
"agencies",
"because",
"of",
"a",
"change",
"in",
"London",
".",
"''",
"Executives",
"at",
"Backer",
"Spielvogel",
"client",
"Avis",
"Inc.",
",",
"as",
"well",
"as",
"at",
"Saatchi",
"client",
"Philips",
"Lighting",
"Co.",
",",
"also",
"said",
"they",
"saw",
"no",
"effect",
".",
"Executives",
"at",
"Prudential-Bache",
"Securities",
"Inc.",
",",
"a",
"Backer",
"Spielvogel",
"client",
"that",
"is",
"reviewing",
"its",
"account",
",",
"declined",
"comment",
".",
"Mr.",
"Spielvogel",
"had",
"said",
"that",
"Prudential-Bache",
"was",
"prepared",
"to",
"finance",
"either",
"a",
"management",
"buy-out",
"and",
"restructuring",
",",
"or",
"a",
"buy-out",
"of",
"Backer",
"Spielvogel",
"alone",
",",
"led",
"by",
"him",
".",
"Ad",
"Notes",
"...",
".",
"NEW",
"ACCOUNT",
":",
"California",
"'s",
"Glendale",
"Federal",
"Bank",
"awarded",
"its",
"$",
"12",
"million",
"to",
"$",
"15",
"million",
"account",
"to",
"the",
"Los",
"Angeles",
"office",
"of",
"Omnicom",
"Group",
"'s",
"BBDO",
"agency",
".",
"The",
"account",
"was",
"previously",
"handled",
"by",
"Davis",
",",
"Ball",
"&",
"Colombatto",
"Advertising",
"Inc.",
",",
"a",
"Los",
"Angeles",
"agency",
".",
"ACCOUNT",
"REVIEW",
":",
"Royal",
"Crown",
"Cola",
"Co.",
"has",
"ended",
"its",
"relationship",
"with",
"the",
"Boston",
"office",
"of",
"Hill",
",",
"Holliday",
",",
"Connors",
",",
"Cosmopulos",
".",
"The",
"account",
"had",
"billed",
"about",
"$",
"6",
"million",
"in",
"1988",
",",
"according",
"to",
"Leading",
"National",
"Advertisers",
".",
"NOT-GUILTY",
"PLEA",
":",
"As",
"expected",
",",
"Young",
"&",
"Rubicam",
"Inc.",
"along",
"with",
"two",
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"and",
"a",
"former",
"employee",
",",
"pleaded",
"not",
"guilty",
"in",
"federal",
"court",
"in",
"New",
"Haven",
",",
"Conn.",
",",
"to",
"conspiracy",
"and",
"racketeering",
"charges",
".",
"The",
"government",
"has",
"charged",
"that",
"they",
"bribed",
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"officials",
"to",
"win",
"the",
"Jamaica",
"Tourist",
"Board",
"ad",
"account",
"in",
"1981",
".",
"A",
"spokesman",
"for",
"the",
"U.S.",
"Attorney",
"'s",
"office",
"said",
"extradition",
"proceedings",
"are",
"``",
"just",
"beginning",
"''",
"for",
"the",
"other",
"two",
"defendants",
"in",
"the",
"case",
",",
"Eric",
"Anthony",
"Abrahams",
",",
"former",
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"tourism",
"minister",
",",
"and",
"Jamaican",
"businessman",
"Arnold",
"Foote",
"Jr",
".",
"KOREAN",
"AGENCY",
":",
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"and",
"Bozell",
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"agreed",
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"establish",
"a",
"joint",
"venture",
"advertising",
"agency",
"in",
"South",
"Korea",
".",
"Bozell",
"Cheil",
"Corp.",
",",
"as",
"the",
"new",
"agency",
"will",
"be",
"called",
",",
"will",
"be",
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"and",
"is",
"70",
"%",
"owned",
"by",
"Samsung",
"and",
"30",
"%",
"owned",
"by",
"Bozell",
".",
"Samsung",
"already",
"owns",
"Korea",
"First",
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"Co.",
",",
"that",
"country",
"'s",
"largest",
"agency",
".",
"Bozell",
"joins",
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"Spielvogel",
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"and",
"Ogilvy",
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"as",
"U.S.",
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"in",
"Korean",
"agencies",
"."
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"Mr.",
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[
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[
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"reading",
",",
"the",
"money",
"is",
"n't",
"being",
"spent",
"very",
"well",
".",
"The",
"single",
"most",
"important",
"contribution",
"the",
"government",
"could",
"make",
"now",
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"help",
"the",
"poor",
"is",
"to",
"get",
"the",
"specter",
"of",
"drugs",
"out",
"of",
"their",
"neighborhoods",
".",
"If",
"that",
"takes",
"money",
",",
"take",
"it",
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"this",
"discredited",
"federal",
"department",
".",
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".",
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",",
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"'re",
"scrambling",
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"protect",
"the",
"very",
"programs",
"at",
"the",
"heart",
"of",
"the",
"HUD",
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".",
"This",
"month",
",",
"HUD",
"Secretary",
"Jack",
"Kemp",
"unveiled",
"a",
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"proposed",
"reforms",
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".",
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"doubt",
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"of",
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"ideas",
"are",
"worthy",
",",
"but",
"ultimately",
"he",
"is",
"proposing",
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"make",
"fundamentally",
"flawed",
"programs",
"work",
"slightly",
"more",
"fairly",
"and",
"efficiently",
".",
"Congress",
"is",
"unlikely",
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"go",
"even",
"that",
"far",
".",
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"week",
",",
"Secretary",
"Kemp",
"ran",
"into",
"a",
"buzzsaw",
"of",
"criticism",
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"House",
"Banking",
"Committee",
"members",
".",
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"were",
"appalled",
",",
"for",
"instance",
",",
"that",
"he",
"wanted",
"to",
"target",
"more",
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"$",
"3",
"billion",
"Community",
"Development",
"Block",
"Grant",
"(",
"CDBG",
")",
"program",
"to",
"low-income",
"projects",
"and",
"zero",
"out",
"the",
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"``",
"discretionary",
"''",
"funds",
"that",
"have",
"allowed",
"HUD",
"officials",
"to",
"steer",
"contracts",
"to",
"political",
"cronies",
".",
"These",
"development",
"grants",
"mainly",
"enrich",
"developers",
"who",
"want",
"to",
"put",
"up",
"shopping",
"centers",
"and",
"parking",
"garages",
".",
"They",
"also",
"give",
"those",
"in",
"Congress",
"political",
"credit",
"for",
"bringing",
"home",
"the",
"pork",
",",
"and",
"so",
"they",
"are",
"popular",
"with",
"such",
"Members",
"as",
"Mary",
"Rose",
"Oakar",
".",
"Rep.",
"Oakar",
",",
"a",
"Democrat",
"from",
"Cleveland",
",",
"wants",
"a",
"$",
"6.9",
"million",
"grant",
"so",
"Cleveland",
"can",
"build",
"an",
"18-story",
"Rock",
"and",
"Roll",
"Hall",
"of",
"Fame",
".",
"She",
"says",
"it",
"'d",
"create",
"600",
"jobs",
"and",
"bring",
"Cleveland",
"tourist",
"revenue",
".",
"HUD",
"says",
"the",
"project",
"does",
"n't",
"qualify",
",",
"and",
"Mr.",
"Kemp",
"says",
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"rock",
"'n'",
"roll",
"musicians",
"and",
"the",
"music",
"industry",
"ought",
"to",
"put",
"up",
"the",
"money",
".",
"At",
"the",
"hearing",
",",
"Rep.",
"Oakar",
"started",
"wailing",
"about",
"``",
"phoney",
"baloney",
"regulations",
"''",
"that",
"would",
"stand",
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"her",
"and",
"``",
"housing",
"for",
"downtown",
"Cleveland",
".",
"''",
"Rep.",
"Chalmers",
"Wylie",
",",
"an",
"Ohio",
"Republican",
",",
"rallied",
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"the",
"cause",
":",
"``",
"I",
"think",
"the",
"gentlelady",
"is",
"making",
"an",
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"statement",
".",
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"a",
"congressman",
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"project",
"in",
"his",
"district",
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"wrong",
",",
"I",
"think",
"is",
"most",
"unfortunate",
".",
"''",
"We",
"'re",
"sure",
"some",
"theologian",
"can",
"explain",
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"what",
"the",
"Republican",
"consultants",
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"been",
"doing",
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"what",
"these",
"gentleladies",
"and",
"gentlemen",
"want",
"to",
"do",
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".",
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"Congress",
"'s",
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"HUD",
",",
"the",
"place",
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"is",
"beyond",
"reform",
".",
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"government",
"has",
"tried",
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"ways",
"to",
"provide",
"housing",
"for",
"the",
"poor",
"and",
"revive",
"cities",
".",
"In",
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"HUD",
"has",
"wasted",
"untold",
"billions",
",",
"created",
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"invited",
"corruption",
".",
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"spending",
"actually",
"is",
"disguised",
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"developers",
"or",
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".",
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"Administration",
",",
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"discovered",
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"$",
"4",
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"in",
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".",
"Selling",
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"loan",
"portfolio",
"to",
"the",
"highest",
"bidder",
"would",
"save",
"the",
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".",
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"trickle",
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",",
"and",
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"tenants",
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"used",
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"Prince",
"George",
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",",
"Md.",
",",
"reported",
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",",
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".",
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"wheelchair",
"was",
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"in",
"the",
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"a",
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".",
"A",
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"boy",
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"a",
"shield",
"by",
"a",
"drug",
"dealer",
".",
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"wo",
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"just",
"tighten",
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"there",
".",
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"believes",
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"be",
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".",
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",",
"we",
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".",
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"machine",
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"channel",
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[
"Although",
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"team",
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",",
"San",
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"Giants",
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".",
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",",
"opponents",
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"the",
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"is",
"an",
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"new",
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".",
"A",
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".",
"It",
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"fueled",
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"the",
"increasing",
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".",
"Something",
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",",
"ranging",
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"San",
"Antonio",
"and",
"St.",
"Petersburg",
".",
"Most",
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"new",
"sports",
"complexes",
"will",
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"moneymakers",
"for",
"their",
"city",
".",
"Pepperdine",
"University",
"economist",
"Dean",
"Baim",
"scoffs",
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".",
"He",
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"14",
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"stadiums",
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"found",
"that",
"only",
"one",
"--",
"private",
"Dodger",
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"--",
"brought",
"more",
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".",
"Stadiums",
"tend",
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"existing",
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"within",
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",",
"not",
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"more",
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"Voters",
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"San",
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".",
"Last",
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",",
"Phoenix",
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".",
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"every",
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"--",
"a",
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"mayor",
",",
"the",
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",",
"the",
"major",
"media",
"--",
"and",
"spent",
"$",
"100,000",
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"promotion",
".",
"But",
"voters",
"decided",
"that",
"if",
"the",
"stadium",
"was",
"such",
"a",
"good",
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"someone",
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",",
"and",
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"59",
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"to",
"41",
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"In",
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"Francisco",
",",
"its",
"backers",
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".",
"George",
"Christopher",
",",
"the",
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"Candlestick",
"Park",
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"in",
"the",
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",",
"wo",
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"the",
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".",
"He",
"says",
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"had",
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"built",
"because",
"the",
"Giants",
"claimed",
"they",
"needed",
"10,000",
"parking",
"spaces",
".",
"Since",
"the",
"new",
"park",
"will",
"have",
"only",
"1,500",
"spaces",
",",
"Mr.",
"Christopher",
"thinks",
"backers",
"are",
"playing",
"some",
"fiscal",
"``",
"games",
"''",
"of",
"their",
"own",
"with",
"the",
"voters",
".",
"Stadium",
"boosters",
"claim",
"that",
"without",
"public",
"money",
"they",
"would",
"never",
"be",
"built",
".",
"Miami",
"Dolphins",
"owner",
"Joe",
"Robbie",
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",",
"and",
"he",
"can",
"prove",
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".",
"Several",
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"he",
"gave",
"up",
"trying",
"to",
"persuade",
"Miami",
"to",
"improve",
"its",
"city-owned",
"Orange",
"Bowl",
",",
"and",
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"built",
"his",
"own",
"$",
"100",
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"coliseum",
"with",
"private",
"funds",
".",
"He",
"did",
"n't",
"see",
"why",
"the",
"taxpayers",
"should",
"help",
"build",
"something",
"he",
"would",
"then",
"use",
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"turn",
"a",
"healthy",
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".",
"``",
"This",
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"shows",
"that",
"anything",
"government",
"can",
"do",
",",
"we",
"can",
"do",
"better",
",",
"''",
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"Robbie",
"says",
".",
"But",
"to",
"Moon",
"Landrieu",
",",
"the",
"former",
"New",
"Orleans",
"mayor",
"who",
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"city",
"'s",
"cavernous",
",",
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",",
"questions",
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"the",
"bottom",
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"of",
"little",
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"``",
"The",
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"is",
"an",
"exercise",
"in",
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",",
"a",
"statement",
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"faith",
",",
"''",
"he",
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".",
"``",
"It",
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",",
"not",
"how",
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"is",
"used",
"or",
"its",
"economics",
".",
"''",
"An",
"Egyptian",
"Pharaoh",
"could",
"n't",
"have",
"justified",
"his",
"pyramids",
"any",
"better",
".",
"But",
"civilization",
"has",
"moved",
"forward",
"since",
"then",
".",
"Today",
"taxpayers",
"get",
"to",
"vote",
",",
"most",
"of",
"the",
"time",
",",
"on",
"whether",
"they",
"want",
"to",
"finance",
"the",
"building",
"schemes",
"of",
"our",
"modern",
"political",
"pharaohs",
",",
"or",
"let",
"private",
"money",
"erect",
"these",
"playgrounds",
"for",
"public",
"passions",
"."
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[
"It",
"is",
"quite",
"unfortunate",
"that",
"you",
"failed",
"so",
"miserably",
"in",
"reporting",
"the",
"Hurricane",
"Hugo",
"disaster",
".",
"Your",
"Sept.",
"27",
"page-one",
"article",
"``",
"Charleston",
"Lost",
"Quite",
"a",
"Lot",
"to",
"Hugo",
",",
"Especially",
"Gentility",
"''",
"leaves",
"the",
"impression",
"that",
"the",
"storm",
"was",
"little",
"more",
"than",
"an",
"inconvenience",
".",
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"reported",
"focused",
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"a",
"select",
"few",
"who",
"owned",
"irreplaceable",
"historic",
"homes",
"on",
"the",
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".",
"Not",
"mentioned",
"were",
"the",
"50,000",
"people",
"rendered",
"homeless",
",",
"and",
"the",
"more",
"than",
"200,000",
"out",
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"work",
"for",
"an",
"indeterminable",
"period",
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"the",
"$",
"1",
"billion-plus",
"in",
"losses",
"to",
"homes",
"and",
"personal",
"property",
"on",
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"barrier",
"islands",
";",
"the",
"near",
"-",
"and",
"long-term",
"impact",
"on",
"the",
"state",
"'s",
"largest",
"industry",
",",
"tourism",
",",
"not",
"to",
"mention",
"the",
"human",
"suffering",
".",
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"centering",
"on",
"the",
"disruption",
"of",
"a",
"few",
"proud",
"local",
"customs",
"such",
"as",
"the",
"historic",
"homes",
"tour",
"and",
"the",
"damage",
"to",
"the",
"antiquities",
",",
"your",
"reporter",
"served",
"to",
"only",
"perpetuate",
"an",
"outdated",
"and",
"stereotypically",
"provincial",
"view",
"of",
"this",
"otherwise",
"thriving",
"port",
"city",
".",
"The",
"damage",
"will",
"undoubtedly",
"prove",
"to",
"be",
"one",
"of",
"the",
"epic",
"human",
"and",
"economic",
"disasters",
"of",
"the",
"decade",
"in",
"this",
"country",
".",
"David",
"M.",
"Carroll",
"Columbia",
",",
"S.C",
".",
"Your",
"story",
"was",
"tasteless",
"and",
"insensitive",
".",
"Depicting",
"the",
"people",
"of",
"a",
"traumatized",
"city",
"reeling",
"from",
"a",
"disaster",
"of",
"unprecedented",
"proportions",
"was",
"at",
"the",
"very",
"best",
"ludicrous",
"under",
"the",
"circumstances",
".",
"Your",
"narrow",
"focus",
"appears",
"to",
"be",
"a",
"contrived",
"attempt",
"to",
"show",
"the",
"people",
"of",
"that",
"historic",
"city",
"to",
"be",
"doddering",
"fools",
".",
"You",
"had",
"to",
"have",
"been",
"blind",
"not",
"to",
"see",
"the",
"scenario",
"there",
"for",
"what",
"it",
"was",
"and",
"is",
"and",
"will",
"continue",
"to",
"be",
"for",
"months",
"and",
"even",
"years",
"--",
"a",
"part",
"of",
"South",
"Carolina",
"that",
"has",
"sustained",
"a",
"blow",
"that",
"the",
"Red",
"Cross",
"expects",
"will",
"cost",
"that",
"organization",
"alone",
"some",
"$",
"38",
"million",
".",
"William",
"C.",
"Barksdale",
"Jr",
".",
"Columbia",
",",
"S.C",
".",
"Charleston",
"is",
"historic",
"and",
"aristocratic",
",",
"as",
"your",
"reporter",
"said",
",",
"but",
"not",
"haughty",
",",
"as",
"he",
"suggested",
".",
"Charlestonians",
"are",
"instead",
"indomitable",
"and",
"have",
"contributed",
"mightily",
"to",
"the",
"culture",
"and",
"history",
"of",
"our",
"country",
"for",
"more",
"than",
"300",
"years",
".",
"I",
"suggest",
"your",
"reporter",
"see",
"Charleston",
"next",
"spring",
"in",
"its",
"full",
"glory",
".",
"William",
"C.",
"Stuart",
"III",
"Silver",
"Spring",
",",
"Md",
"."
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[
"David",
"W.",
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",",
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".",
"Mr.",
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",",
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",",
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"Co.",
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"Corp.",
",",
"succeeds",
"Francis",
"L.",
"Brophy",
",",
"64",
",",
"who",
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"the",
"company",
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"."
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[
"Democracy",
"is",
"making",
"a",
"return",
"with",
"a",
"vengeance",
"to",
"Latin",
"America",
"'s",
"most",
"populous",
"and",
"deeply",
"indebted",
"country",
".",
"On",
"Nov.",
"15",
",",
"when",
"Brazilians",
"elect",
"a",
"president",
"for",
"the",
"first",
"time",
"in",
"29",
"years",
",",
"the",
"country",
"'s",
"82",
"million",
"voters",
"will",
"have",
"22",
"candidates",
"to",
"choose",
"from",
".",
"The",
"candidates",
"have",
"been",
"crisscrossing",
"this",
"huge",
"country",
"of",
"145",
"million",
"people",
",",
"holding",
"rallies",
"and",
"televised",
"debates",
"in",
"hope",
"of",
"being",
"elected",
"to",
"what",
"must",
"be",
"one",
"of",
"the",
"world",
"'s",
"most",
"thankless",
"political",
"jobs",
":",
"trying",
"to",
"drag",
"Brazil",
"out",
"of",
"its",
"economic",
"and",
"social",
"mess",
".",
"``",
"I",
"feel",
"sorry",
"for",
"whoever",
"wins",
",",
"''",
"says",
"a",
"Brazilian",
"diplomat",
".",
"Who",
"that",
"winner",
"will",
"be",
"is",
"highly",
"uncertain",
".",
"A",
"half-dozen",
"candidates",
",",
"backing",
"policies",
"ranging",
"from",
"Thatcherism",
"to",
"watered-down",
"Marxism",
",",
"are",
"given",
"a",
"chance",
"of",
"winning",
".",
"``",
"Whoever",
"says",
"he",
"knows",
"which",
"of",
"the",
"six",
"will",
"win",
"is",
"out",
"of",
"his",
"mind",
",",
"''",
"says",
"Antonio",
"Britto",
",",
"a",
"centrist",
"member",
"of",
"Parliament",
".",
"The",
"favorite",
"remains",
"Fernando",
"Collor",
"de",
"Mello",
",",
"a",
"40-year-old",
"former",
"governor",
"of",
"the",
"state",
"of",
"Alagoas",
".",
"He",
"came",
"out",
"of",
"nowhere",
"to",
"grab",
"the",
"lead",
"in",
"opinion",
"polls",
",",
"probably",
"less",
"because",
"of",
"his",
"vague",
"program",
"to",
"``",
"build",
"a",
"new",
"Brazil",
"''",
"than",
"because",
"of",
"his",
"good",
"looks",
",",
"the",
"open",
"backing",
"of",
"the",
"powerful",
"Rede",
"Globo",
"television",
"network",
"and",
"his",
"reputation",
"as",
"a",
"hunter",
"of",
"``",
"maharajahs",
",",
"''",
"or",
"overpaid",
"and",
"underworked",
"civil",
"servants",
".",
"But",
"after",
"building",
"up",
"a",
"commanding",
"lead",
",",
"the",
"moderate",
"to",
"conservative",
"Mr.",
"Collor",
"has",
"slipped",
"to",
"about",
"30",
"%",
"in",
"the",
"polls",
"from",
"a",
"high",
"of",
"about",
"43",
"%",
"only",
"a",
"few",
"weeks",
"ago",
".",
"To",
"avoid",
"a",
"runoff",
",",
"one",
"candidate",
"would",
"have",
"to",
"win",
"50",
"%",
"of",
"the",
"vote",
"--",
"a",
"feat",
"that",
"most",
"analysts",
"consider",
"impossible",
"with",
"so",
"many",
"candidates",
"running",
".",
"Two",
"left-wing",
"politicians",
",",
"Socialist",
"Leonel",
"Brizola",
",",
"a",
"former",
"governor",
"of",
"Rio",
"de",
"Janeiro",
"state",
",",
"and",
"Marxist-leaning",
"Luis",
"Inacio",
"da",
"Silva",
",",
"currently",
"are",
"running",
"neck",
"and",
"neck",
"at",
"about",
"15",
"%",
",",
"and",
"three",
"other",
"candidates",
"are",
"given",
"a",
"chance",
"of",
"reaching",
"the",
"Dec.",
"17",
"runoff",
"election",
"between",
"the",
"two",
"biggest",
"vote-getters",
":",
"Social",
"Democrat",
"Mario",
"Covas",
"and",
"two",
"conservatives",
",",
"Paulo",
"Salim",
"Maluf",
",",
"a",
"former",
"governor",
"of",
"the",
"state",
"of",
"Sao",
"Paulo",
",",
"and",
"Guilherme",
"Afif",
"Domingos",
".",
"The",
"uncertainty",
"is",
"sending",
"shivers",
"through",
"Brazilian",
"financial",
"markets",
".",
"The",
"dollar",
",",
"the",
"best",
"indicator",
"of",
"the",
"country",
"'s",
"mood",
",",
"has",
"skyrocketed",
"on",
"the",
"parallel",
"market",
",",
"as",
"has",
"gold",
".",
"Capital",
"flight",
"is",
"reported",
"to",
"be",
"strong",
".",
"The",
"big",
"question",
"is",
"whether",
"the",
"new",
"president",
"will",
"have",
"the",
"strength",
"and",
"the",
"political",
"support",
"in",
"Congress",
"to",
"take",
"steps",
"to",
"cure",
"Brazil",
"'s",
"economic",
"ills",
".",
"President",
"Jose",
"Sarney",
",",
"who",
"took",
"office",
"in",
"1985",
"when",
"the",
"man",
"picked",
"by",
"an",
"electoral",
"college",
"became",
"critically",
"ill",
",",
"appears",
"to",
"be",
"simply",
"trying",
"to",
"avoid",
"hyperinflation",
".",
"The",
"unpopular",
"Mr.",
"Sarney",
",",
"whose",
"task",
"was",
"to",
"bring",
"about",
"a",
"smooth",
"transition",
"to",
"democracy",
"after",
"21",
"years",
"of",
"military",
"rule",
",",
"is",
"n't",
"seeking",
"re-election",
".",
"What",
"comes",
"out",
"of",
"the",
"ballot",
"box",
"could",
"be",
"crucial",
"in",
"determining",
"whether",
"Brazil",
"finally",
"lives",
"up",
"to",
"the",
"potential",
"of",
"the",
"world",
"'s",
"eighth",
"largest",
"economy",
"or",
"keeps",
"living",
"up",
"to",
"its",
"other",
",",
"less",
"enviable",
"title",
":",
"that",
"of",
"the",
"developing",
"world",
"'s",
"largest",
"debtor",
",",
"teetering",
"on",
"the",
"brink",
"of",
"hyperinflation",
",",
"mired",
"in",
"deficits",
"and",
"stagnation",
",",
"with",
"huge",
"economic",
"inequalities",
"and",
"social",
"discontent",
"boiling",
"under",
"the",
"surface",
".",
"If",
"Brazil",
"devises",
"an",
"economic",
"strategy",
"allowing",
"it",
"to",
"resume",
"growth",
"and",
"service",
"debt",
",",
"this",
"could",
"lead",
"it",
"to",
"open",
"up",
"and",
"deregulate",
"its",
"sheltered",
"economy",
",",
"analysts",
"say",
",",
"just",
"as",
"Argentinian",
"President",
"Carlos",
"Saul",
"Menem",
"has",
"been",
"doing",
"even",
"though",
"he",
"was",
"elected",
"on",
"a",
"populist",
"platform",
".",
"``",
"Depending",
"on",
"the",
"president",
",",
"we",
"could",
"either",
"be",
"a",
"trillion-dollar",
"economy",
"by",
"the",
"end",
"of",
"the",
"century",
"or",
"stay",
"where",
"we",
"are",
",",
"''",
"says",
"political",
"scientist",
"Amaury",
"de",
"Souza",
".",
"``",
"And",
"where",
"we",
"are",
"is",
"bad",
".",
"''",
"Despite",
"valiant",
"efforts",
"by",
"Finance",
"Minister",
"Mailson",
"Ferreira",
"da",
"Nobrega",
",",
"inflation",
"came",
"to",
"36",
"%",
"in",
"September",
"alone",
"and",
"is",
"expected",
"to",
"top",
"1,000",
"%",
"for",
"the",
"year",
".",
"That",
"might",
"have",
"been",
"considered",
"hyperinflation",
"not",
"long",
"ago",
",",
"but",
"Argentina",
"endured",
"price",
"increases",
"of",
"almost",
"200",
"%",
"in",
"July",
"before",
"bringing",
"the",
"rate",
"down",
"sharply",
"in",
"August",
"and",
"September",
".",
"Still",
",",
"massive",
"internal",
"debt",
"has",
"forced",
"the",
"government",
"to",
"borrow",
"massively",
"on",
"the",
"domestic",
"market",
"and",
"to",
"offer",
"inflation-adjusted",
"returns",
"of",
"2",
"%",
"to",
"3",
"%",
"a",
"month",
"just",
"to",
"get",
"investors",
"to",
"hold",
"on",
"to",
"its",
"paper",
".",
"About",
"$",
"70",
"billion",
"is",
"estimated",
"to",
"be",
"tied",
"up",
"in",
"the",
"short-term",
"money",
"market",
",",
"which",
"acts",
"both",
"as",
"a",
"hedge",
"against",
"inflation",
"for",
"consumers",
"and",
"an",
"accelerator",
"of",
"inflation",
"and",
"deficits",
"for",
"the",
"government",
".",
"By",
"some",
"estimates",
",",
"Brazil",
"'s",
"internal",
"debt",
",",
"or",
"combined",
"public",
"deficit",
",",
"could",
"reach",
"6.5",
"%",
"of",
"its",
"$",
"351",
"billion",
"gross",
"domestic",
"product",
".",
"Much",
"of",
"the",
"money",
"goes",
"into",
"subsidies",
"or",
"keeping",
"inefficient",
"state-controlled",
"companies",
"operating",
".",
"Among",
"the",
"results",
"is",
"a",
"frequent",
"breakdown",
"of",
"public",
"services",
".",
"It",
"'s",
"not",
"uncommon",
"to",
"wait",
"three",
"minutes",
"for",
"a",
"dial",
"tone",
"after",
"picking",
"up",
"the",
"telephone",
",",
"and",
"then",
"to",
"be",
"interrupted",
"by",
"a",
"busy",
"signal",
"before",
"finishing",
"dialing",
"the",
"number",
".",
"Officials",
"also",
"say",
"a",
"national",
"electricity",
"shortage",
"might",
"not",
"be",
"far",
"off",
".",
"Economists",
",",
"businessmen",
"and",
"some",
"politicians",
"agree",
"that",
"the",
"answer",
"is",
"an",
"orthodox",
"economic",
"austerity",
"program",
"including",
"reduced",
"state",
"spending",
";",
"focusing",
"spending",
"on",
"vital",
"areas",
"such",
"as",
"education",
",",
"health",
"and",
"welfare",
";",
"turning",
"state",
"companies",
"private",
";",
"reforming",
"the",
"tax",
"system",
",",
"raising",
"public",
"service",
"rates",
"to",
"match",
"costs",
";",
"and",
"possibly",
"a",
"temporary",
"wage",
"and",
"price",
"freeze",
"and",
"a",
"devaluation",
"of",
"the",
"cruzado",
".",
"Analysts",
"also",
"say",
"it",
"'s",
"inevitable",
"that",
"Brazil",
"will",
"seek",
"to",
"renegotiate",
"its",
"$",
"115",
"billion",
"foreign",
"debt",
",",
"on",
"which",
"it",
"suspended",
"interest",
"payments",
"last",
"month",
".",
"Analysts",
"say",
",",
"however",
",",
"that",
"a",
"tough",
"economic",
"program",
"would",
"have",
"to",
"be",
"accompanied",
"by",
"measures",
"to",
"shield",
"the",
"poor",
"from",
"its",
"recessionary",
"effects",
",",
"for",
"instance",
"by",
"subsidizing",
"staple",
"food",
"items",
".",
"About",
"80",
"%",
"of",
"Brazil",
"'s",
"voters",
"are",
"believed",
"to",
"live",
"near",
"the",
"poverty",
"level",
".",
"Of",
"the",
"three",
"candidates",
"with",
"a",
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"chance",
"of",
"winning",
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[
"THE",
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".",
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"226.3",
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",",
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",",
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",",
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",",
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"Financial",
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",",
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"edging",
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",",
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",",
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",",
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".",
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":",
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"141.52",
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",",
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"0.07",
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"0.0002",
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